HomeMy WebLinkAbout11/30/2025 - Order or Report: : FINANCIAL REPORT - Brazos County Municipal Utility District No. 1BRAZOS COUNTY MUNICIPAL
UTILITY DISTRICT NO. 1
BRAZOS COUNTY, TEXAS
FINANCIAL REPORT
November 30, 2025
Table of Contents
Independent Auditor's Report
Management's Discussion and Analysis
Schedule Page
1
7
BASIC FINANCIAL STATEMENTS
Statement of Net Position and Governmental Funds Balance Sheet 16
Statement of Activities and Governmental Funds Revenues, Expenditures
and Changes in Fund Balances 18
Notes to Financial Statements 21
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund 38
Notes to Required Supplementary Information 39
TEXAS SUPPLEMENTARY INFORMATION
Services and Rates TSI-1 42
General Fund Expenditures TSI-2 44
Investments TSI-3 45
Taxes Levied and Receivable TSI-4 46
Long -Term Debt Service Requirements by Years TSI-5 47
Change in Long -Term Bonded Debt TSI-6 54
Comparative Schedule of Revenues and Expenditures — General Fund TSI-7a 56
Comparative Schedule of Revenues and Expenditures — Debt Service Fund TSI-7b 58
Board Members, Key Personnel and Consultants TSI-8 60
McGRATH & CO., PLLC
Certified Public Accountants
2950 North Loop West, Suite 810
Houston, Texas 77092
Independent Auditor's Report
Board of Directors
Brazos County Municipal Utility District No. 1
Brazos County, Texas
Opinions
We have audited the accompanying financial statements of the governmental activities and each major
fund of Brazos County Municipal Utility District No. 1 (the "District"), as of and for the year ended
November 30, 2025, and the related notes to the financial statements, which collectively comprise the
District's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of Brazos County
Municipal Utility District No. 1, as of November 30, 2025, and the respective changes in financial
position thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the District and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 3 to the financial statements, beginning fund balance and beginning net position
has been restated to correct a misstatement in prior years. Our opinion is not modified with respect
to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
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Board ofDirectors
Brazos County Municipal Utility District No. 1
Brazos County, Texas
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the District's ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the District's internal control. Accordingly, no such opinion
is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the District's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control -
related matters that we identified during the audit.
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Board ofDirectors
Brazos County Municipal Utility District No. 1
Brazos County, Texas
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information be presented to
supplement the basic financial statements. Such information is the responsibility of management and,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District's basic financial statements. The Texas Supplementary Information
schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the Texas Supplementary Information schedules are fairly stated in all material respects in relation to
the basic financial statements as a whole.
(--gz4eze„__ 6),
Houston, Texas
March 6, 2026
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Management's Discussion and Analysis
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
Using this Annual Report
This section of the financial report of Brazos County Municipal Utility District No. 1 (the "District")
provides a narrative discussion and analysis of the financial activities of the District for the fiscal year
ended November 30, 2025. This analysis should be read in conjunction with the independent auditor's
report and the basic financial statements that follow this section.
In addition to this discussion and analysis, this annual report consists of:
• The District's basic financial statements;
• Notes to the basic financial statements, which provide additional information essential to a
full understanding of the data provided in the financial statements;
• Supplementary information required by the Governmental Accounting Standards Board
(GASB) concerning the District's budget; and
• Other Texas supplementary information required by the District's state oversight agency, the
Texas Commission on Environmental Quality (TCEQ).
Overview of the Financial Statements
The District prepares its basic financial statements using a format that combines fund financial
statements and government -wide statements onto one financial statement. The combined statements
are the Statement of Net Position and Governmental Funds Balance Sheet and the Statement of Activities and
Governmental Funds Revenues, Expenditures and Changes in Fund Balances. Each statement contains an
adjustments column which quantifies the differences between the government -wide and fund level
statements. Additional details of the adjustments are provided in Note 2 to the basic financial
statements.
Government -Wide Financial Statements
The focus of government -wide financial statements is on the overall financial position and activities
of the District, both long-term and short-term. The District's government -wide financial statements
consist of the Statement ofNet Position and the Statement of Activities, which are prepared using the accrual
basis of accounting. The Statement ofNet Position includes all of the District's assets, deferred outflows
of resources, liabilities, and deferred inflows of resources with the residual reported as net position.
Over time, changes in net position may provide a useful indicator of whether the financial position of
the District as a whole is improving or deteriorating.
Accounting standards establish three components of net position. The net investment in capital assets
component represents the District's investments in capital assets, less any outstanding debt or other
borrowings used to acquire those assets. Resources needed to repay this debt must be provided from
other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The
restricted component of net position consists of financial resources that are restricted for a specific
purpose by enabling legislation or external parties. The unrestricted component of net position
represents resources not included in the other components.
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
The Statement of Activities reports how the District's net position has changed during the fiscal year. All
revenues and expenses are included on this statement, regardless of whether cash has been received
or paid.
Fund Financial Statements
The fund financial statements include the Governmental Funds Balance Sheet and the Governmental Funds
Revenues, Expenditures and Changes in Fund Balances. The focus of fund financial statements is on specific
activities of the District rather than the District as a whole, reported using modified accrual accounting.
These statements report on the District's use of available financial resources and the balances of
available financial resources at the end of the year. Except for the General Fund, a specific fund is
established to satisfy managerial control over resources or to satisfy finance -related legal requirements
established by external parties, governmental statutes or regulations.
For further discussion on the government -wide and fund financial statements, please refer to Note 1
in the financial statements.
Financial Analysis of the District as a Whole
The District's net position at November 30, 2025, was negative $43,230,264. The District's net
position is negative because the District incurs debt to construct water and sewer facilities which it
conveys to the City of College Station and roads which it conveys to Brazos County. A comparative
summary of the District's overall financial position, as of November 30, 2025 and 2024, is as follows:
Current and other assets
Capital assets
Total assets
2025 2024
$ 5,865,076 $ 2,735,304
25,083,466 18,565,239
30,948,542 21,300,543
Current liabilities (2024 restated) 2,672,068 624,266
Long-term liabilities 69,169,733 50,521,685
Total liabilities 71,841,801 51,145,951
Total deferred inflows of resources
2,337,005 1,770,878
Net position
Net investment in capital assets (3,615,329) (1,994,513)
Restricted 1,026,317 144,194
Unrestricted (2024 restated) (40,641,252) (29,765,967)
Total net position $ (43,230,264) $ (31,616,286)
During the current year, the District determined that liabilities related to accrued legal fees were
overstated and had been repaid in the 2023 fiscal year. Accordingly, the District restated the beginning
balance of current liabilities and net position as of the start of the current fiscal year. Comparative
amounts for fiscal year 2024 have been restated accordingly. See Note 3 for additional information.
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
The total net position of the District decreased during the current fiscal year by $11,613,978. A
comparative summary of the District's Statement of Activities for the past two fiscal years is as follows:
2025 2024
Revenues
Property taxes, penalties and interest $ 1,793,863 $ 1,287,625
Other 78,559 86,906
Total revenues 1,872,422 1,374,531
Expenses
Operating and administrative 450,071 409,774
Debt interest and fees 825,314 570,441
Developer interest 1,968,566 826,654
Debt issuance costs 1,092,230 697,097
Depreciation 246,820 170,218
Total expenses 4,583,001 2,674,184
Change in net position before other item (2,710,579) (1,299,653)
Other item
Transfers to other governments
(8,903,399) (5,933,045)
Change in net position (11,613,978) (7,232,698)
Net position, beginning of year (2024 restated) (31,616,286) (24,383,588)
Net position, end of year $ (43,230,264) $ (31,616,286)
As previously noted, the comparative amount reported for the 2024 fiscal year for beginning net
position has been restated due to the correction of an error in a previous fiscal year. See Note 3 for
additional information.
Financial Analysis of the District's Funds
The District's combined fund balances, as of November 30, 2025, were $1,833,735 which consists of
$494,322 in the General Fund, $1,307,159 in the Debt Service Fund and $32,254 in the Capital Projects
Fund.
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
General Fund
A comparative summary of the General Fund's financial position as of November 30, 2025 and 2024,
is as follows:
Total assets
2025 2024
$ 2,519,972 $ 1,090,512
Total liabilities (2024 restated) $ 1,602,003 $ 126,350
Total deferred inflows 423,647 443,006
Total fund balance (2024 restated) 494,322 521,156
Total liabilities, deferred inflows and fund balance $ 2,519,972 $ 1,090,512
As previously noted, the District recorded adjustments to correct amounts related to legal fees payable
which had been paid in the 2023 fiscal year. Amounts reported for the 2024 fiscal year for total
liabilities and total fund balance have been revised accordingly (see Note 3).
A comparative summary of the General Fund's activities for the current and prior fiscal year is as
follows:
2025 2024
Total revenues $ 472,305 $ 791,437
Total expenditures (2,049,139) (470,371)
Revenues over/(under) expenditures (1,576,834) 321,066
Other changes in fund balance 1,550,000
Net change in fund balance $ (26,834) $ 321,066
The District manages its activities with the objectives of ensuring that expenditures will be adequately
covered by revenues each year and that an adequate fund balance is maintained. The District's primary
financial resources in the General Fund are from a property tax levy and developer advances. Financial
resources are influenced by a variety of factors each year:
• Property tax revenues are dependent upon assessed values in the District and the maintenance
tax rate set by the District. The 2024 levy was recognized as revenues in the 2025 fiscal year,
while the 2023 levy was recognized in the 2024 fiscal year (to the extent that these amounts
were collected). While assessed values in the District increased from the prior year, property
tax revenues decreased because the District decreased the maintenance component of the levy.
• The District's developers advance funds to the District as needed to pay operating costs.
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
Debt Service Fund
A comparative summary of the Debt Service Fund's financial position as of November 30, 2025 and
2024, is as follows:
Total assets
2025 2024
$ 3,312,850 $ 1,612,728
Total liabilities $ 78,496 $ -
Total deferred inflows 1,927,195 1,328,343
Total fund balance 1,307,159 284,385
Total liabilities, deferred inflows and fund balance $ 3,312,850 $ 1,612,728
A comparative summary of the Debt Service Fund's activities for the current and prior fiscal year is
as follows:
2025 2024
Total revenues $ 1,385,360 $ 568,939
Total expenditures (1,035,917) (700,296)
Revenues over/(under) expenditures 349,443 (131,357)
Other changes in fund balance 673,331 191,506
Net change in fund balance $ 1,022,774 $ 60,149
The District's financial resources in the Debt Service Fund in both the current and prior fiscal year
are from property tax revenues and capitalized interest from the sale of bonds. The difference between
these financial resources and debt service requirements resulted in an increase in fund balance each
year. It is important to note that the District sets its annual debt service tax rate as recommended by
its financial advisor, who monitors projected cash flows in the Debt Service Fund to ensure that the
District will be able to meet its future debt service requirements.
Capital Pr jects Fund
A comparative summary of the Capital Projects Fund's financial position as of November 30, 2025
and 2024, is as follows:
Total assets
Total fund balance (2024 restated)
2025 2024
$ 32,254 $ 32,064
$ 32,254 $ 32,064
As previously noted, the District recorded adjustments to correct amounts related to legal fees payable
which had been repaid in the 2023 fiscal year. Amounts reported for the 2024 fiscal year for total
liabilities and total fund balance have been revised accordingly (see Note 3).
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
A comparative summary of activities in the Capital Projects Fund for the current and prior fiscal year
is as follows:
2025 2024
Total revenues $ 1,391 $ 14,930
Total expenditures (13,603,310) (8,506,360)
Revenues under expenditures (13,601,919) (8,491,430)
Other changes in fund balance 13,602,110 8,523,494
Net change in fund balance $ 191 $ 32,064
The District has had considerable capital asset activity in the last two years, which was financed with
proceeds from the issuance of its Series 2025 Unlimited Tax Bonds in the current fiscal year and
issuance of its Series 2024 Unlimited Tax Road Bonds in the prior year.
General Fund Budgetary Highlights
The Board of Directors adopts an annual unappropriated budget for the General Fund prior to the
beginning of each fiscal year. The Board did not amend the budget during the fiscal year.
Since the District's budget is primarily a planning tool, actual results varied from the budgeted
amounts. Actual net change in fund balance was $70,514 less than budgeted. The Budgetary Comparison
Schedule on page 38 of this report provides variance information per financial statement line item.
Capital Assets
The District has entered into financing agreements with its developers for the financing of the
construction of capital assets within the District. Developers will be reimbursed from proceeds of
future bond issues or other lawfully available funds. These developer funded capital assets are recorded
on the District's financial statements upon completion of construction.
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
Capital assets held by the District at November 30, 2025 and 2024, are summarized as follows:
2025 2024
Capital assets not being depreciated
Easements, land and improvements $ 14,695,893 $ 11,375,313
Capital assets being depreciated
Drainage facilities 11,157,934 7,713,467
Landscaping improvements 22,560 22,560
11,180,494 7,736,027
Less accumulated depreciation
Drainage facilities (786,153) (540,461)
Landscaping improvements (6,768) (5,640)
(792,921) (546,101)
Depreciable capital assets, net 10,387,573 7,189,926
Capital assets, net $ 25,083,466 $ 18,565,239
Capital asset additions during the current fiscal year include the following:
• Southern Pointe Sections 203 and 700 - drainage
• Offsite drainage for mass grading no. 5
• Detention and mass grading no. 5
The District and the City of College Station (the "City") have entered into an agreement which
obligates the District to construct water and wastewater facilities to serve the District and, when
completed, to convey title to the facilities to the City. Additional information is presented in Note 11.
Additionally, the District and Brazos County (the "County") have entered into an agreement for the
construction of road facilities within the boundaries of the District and, when completed, to convey
title to the facilities to the County for acceptance into the County system. More information is
presented in Note 12.
Accordingly, these public water, sewer, and road facilities are not considered assets of the District.
The estimated value of these assets is recorded as transfers to other governments upon completion of
construction. This estimated cost is trued -up when the developers are reimbursed. For the year ended
November 30, 2025, capital assets in the amount of $8,903,399 have been completed and recorded as
transfers to other governments in the government -wide statements. Additional information is
presented in Note 10.
Long -Term Debt and Related Liabilities
As of November 30, 2025, the District owes approximately $39,679,733 to its developers for
completed projects and operating advances. The initial cost of the completed project and related
liability is estimated based on actual construction costs plus 10-15% for engineering and other fees
and is recorded on the District's financial statements upon completion of construction. As discussed
in Note 7, the District has an additional commitment in the amount of $16,670,000 for projects under
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Brazos County Municipal Utility District No. 1
Management's Discussion and Analysis
November 30, 2025
construction by the developers. As noted, the District will owe its developers for these projects upon
completion of construction. The District intends to reimburse the developers from proceeds of future
bond issues or other lawfully available funds. The estimated cost of amounts owed to the developers
is trued up when the developers are reimbursed.
At November 30, 2025 and 2024, the District had total bonded debt outstanding as shown below:
Series 2025 2024
2020 Road $ 1,775,000 $ 1,825,000
2022 1,465,000 1,510,000
2023 3,855,000 3,930,000
2024 Road 8,550,000 8,715,000
2025 14,500,000
$ 30,145,000 $ 15,980,000
During the current fiscal year, the District issued $14,500,000 in unlimited tax bonds. At November
30, 2025, the District had $215,505,000 unlimited tax bonds authorized, but unissued for the purposes
of acquiring, constructing and improving the water, sanitary sewer and drainage systems within the
District and the refunding of such bonds; and $93,345,000 for road improvements and the refunding
of such bonds.
Next Year's Budget
In establishing the budget for the next fiscal year, the Board considered various economic factors that
may affect the District, most notably projected revenues from property taxes and water/sewer services
and the projected cost of operating the District and providing services to customers. A comparison
of next fiscal year's budget to current fiscal year actual amounts for the General Fund is as follows:
2025 Actual 2026 Budget
Total revenues $ 472,305 $ 413,102
Total expenditures (2,049,139) (406,320)
Revenues over/(under) expenditures (1,576,834) 6,782
Other changes in fund balance 1,550,000
Net change in fund balance (26,834) 6,782
Beginning fund balance 521,156 494,322
Ending fund balance $ 494,322 $ 501,104
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Basic Financial Statements
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Brazos County Municipal Utility District No. 1
Statement of Net Position and Governmental Funds Balance Sheet
November 30, 2025
Debt Capital
General Service Projects
Fund Fund Fund Total
Assets
Cash $ 1,645 $ 73,172 $ - $ 74,817
Investments 1,951,457 1,366,043 32,254 3,349,754
Taxes receivable, net 411,893 1,873,635 2,285,528
Interfund receivables 26,555 26,555
Prepaid items 618 618
Other receivables 69,170 69,170
Restricted assets:
Road maintenance fund 58,634 58,634
Capital assets not being depreciated
Capital assets, net
Total Assets $ 2,519,972 $ 3,312,850 $ 32,254 $ 5,865,076
Liabilities
Accounts payable $ 32,980 $ - $ $ 32,980
Condemnation settlement payable 1,485,730 1,485,730
Other payables 69,373 350 69,723
Road maintenance fund advance 13,920 13,920
Interfund payables 26,555 26,555
Accrued interest payable 51,591 51,591
Due to developers
Long-term debt
Due within one year
Due after one year
Total Liabilities 1,602,003 78,496 1,680,499
Deferred Inflows of Resources
Deferred property taxes 423,647 1,927,195 2,350,842
Fund Balances/Net Position
Fund Balances
Nonspendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
Net Position
Net investment in capital assets
Restricted for debt service
Restricted for other purposes
Unrestricted
Total Net Position
See notes to basic financial statements.
618
44,714 1,307,159
448,990
494,322 1,307,159
618
32,254 1,384,127
448,990
32,254 1,833,735
$ 2,519,972 $ 3,312,850 $ 32,254 $ 5,865,076
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Adjustments
14,695,893
10,387,573
25,083,466
336,569
39,679,733
655,000
29,490,000
70,161,302
(13,837)
(618)
(1,384,127)
(448,990)
(1,833,735)
(3,615,329)
981,603
44,714
(40,641,252)
$ (43,230,264)
Statement of
Net Position
$ 74,817
3,349,754
2,285,528
26,555
618
69,170
58,634
14,695,893
10,387,573
30,948,542
32,980
1,485,730
69,723
13,920
26,555
388,160
39,679,733
655,000
29,490,000
71,841,801
2,337,005
(3,615,329)
981,603
44,714
(40,641,252)
$ (43,230,264)
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Brazos County Municipal Utility District No. 1
Statement of Activities and Governmental Funds Revenues, Expenditures and Changes in Fund Balances
For the Year Ended November 30, 2025
Debt Capital
General Service Projects
Fund Fund Fund Total
Revenues
Property taxes $ 443,158 $ 1,330,706 $ - $ 1,773,864
Penalties and interest 6,633 6,633
Miscellaneous 6,415 6,415
Investment earnings 29,147 41,606 1,391 72,144
Total Revenues 472,305 1,385,360 1,391 1,859,056
Expenditures/Expenses
Operating and administrative
Professional fees 180,131 120,569 300,700
Contracted services 41,927 39,287 81,214
Repairs and maintenance 23,987 23,987
Administrative 29,616 1,716 31,332
Other 4,584 8,254 12,838
Capital outlay 1,768,894 10,421,945 12,190,839
Debt service
Principal 335,000 335,000
Interest and fees 651,660 651,660
Developer interest 1,968,566 1,968,566
Debt issuance costs 1,092,230 1,092,230
Depreciation
Total Expenditures/Expenses 2,049,139 1,035,917 13,603,310 16,688,366
Revenues Over/(Under)
Expenditures/Expenses (1,576,834) 349,443 (13,601,919) (14,829,310)
Other Financing Sources/(Uses)
Proceeds from sale of bonds
Developer advances
Repayment of operating advances
Other Item
Transfers to other governments
1,550,000
673,331 13,826,669 14,500,000
1,550,000
(224,559) (224,559)
Net Change in Fund Balances (26,834) 1,022,774 191 996,131
Change in Net Position
Fund Balance/Net Position
Beginning of the year, as reported 416,936 284,385 7,952 709,273
Change due to error correction (see Note 3) 104,220 24,111 128,331
Beginning of the year, as restated 521,156 284,385 32,063 837,604
End of the year $ 494,322 $ 1,307,159 $ 32,254 $ 1,833,735
See notes to basic financial statements.
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Adjustments
$ 10,801
2,565
13,366
(12,190,839)
(335,000)
173,654
246,820
(12,105,365)
12,118,731
(14,500,000)
(1,550,000)
224,559
(8,903,399)
(996,131)
(11,613,978)
(32,453,890)
(32,453,890)
$ (45,063,999)
Statement of
Activities
$ 1,784,665
9,198
6,415
72,144
1,872,422
300,700
81,214
23,987
31,332
12,838
825,314
1,968,566
1,092,230
246,820
4,583,001
(2,710,579)
(8,903,399)
(11,613,978)
(31,744,617)
128,331
(31,616,286)
$ (43,230,264)
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Note 1— Summary of Significant Accounting Policies
The accounting policies of Brazos County Municipal Utility District No. 1 (the "District") conform
with accounting principles generally accepted in the United States of America as promulgated by the
Governmental Accounting Standards Board ("GASB"). The following is a summary of the most
significant policies:
Creation
The District was organized, created and established pursuant to an order of the Texas Commission
on Environmental Quality, dated January 14, 2015, and operates in accordance with the Texas Water
Code, Chapters 49 and 54. The Board of Directors held its first meeting on January 29, 2015 and the
first bonds were issued on September 24, 2020.
The District's primary activities include construction of water, sewer, drainage, and road facilities
within the District. As further discusses in Notes 11 and 12, the District transfers the water and sewer
facilities to the City of College Station for operation and maintenance upon completion of
construction and road facilities to Brazos County for acceptance into the public road system. The
District has contracted with various consultants to provide services to operate and administer the
affairs of the District. The District has no employees, related payroll or pension costs.
Reporting Entity
The District is a political subdivision of the State of Texas governed by an elected five -member board.
The GASB has established the criteria for determining the reporting entity for financial statement
reporting purposes. To qualify as a primary government, a government must have a separately elected
governing body, be legally separate, and be fiscally independent of other state and local governments,
while a component unit is a legally separate government for which the elected officials of a primary
government are financially accountable. Fiscal independence implies that the government has the
authority to adopt a budget, levy taxes, set rates, and/or issue bonds without approval from other
governments. Under these criteria, the District is considered a primary government and is not a
component unit of any other government. Additionally, no other entities meet the criteria for inclusion
in the District's financial statements as component units.
Government -Wide and Fund Financial Statements
Government -wide financial statements display information about the District as a whole. These
statements focus on the sustainability of the District as an entity and the change in aggregate financial
position resulting from the activities of the fiscal period. Interfund activity, if any, has been removed
from these statements. These aggregated statements consist of the Statement of Net Position and the
Statement of Activities.
Fund financial statements display information at the individual fund level. A fund is a grouping of
related accounts that is used to maintain control over resources that have been segregated for a specific
purpose. Each fund is considered to be a separate accounting entity. Most governments typically have
many funds; however, governmental financial statements focus on the most important or "major"
21
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
funds with non -major funds aggregated in a single column. The District has three governmental funds,
which are all considered major funds.
The following is a description of the various funds used by the District:
• The General Fund is used to account for the operations of the District and all other financial
transactions not reported in other funds. The principal sources of revenue are property taxes.
Expenditures include costs associated with the daily operations of the District.
• The Debt Service Fund is used to account for the payment of interest and principal on the
District's general long-term debt. The primary source of revenue for debt service is property taxes.
During the current fiscal year, financial resources also included capitalized interest from the sale
of bonds. Expenditures include costs incurred in assessing and collecting these taxes.
• The Capital Projects Fund is used to account for the expenditures of bond proceeds for the
construction of the District's water, sewer and drainage facilities and road improvements.
As a special-purpose government engaged in a single governmental program, the District has opted
to combine its government -wide and fund financial statements in a columnar format showing an
adjustments column for reconciling items between the two.
Measurement Focus and Basis of Accounting
The government -wide financial statements use the economic resources measurement focus and the
full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized
as revenue in the year for which they are levied.
The fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenue is recognized in the accounting period in which
it becomes both available and measurable to finance expenditures of the current period. For this
purpose, the government considers revenues to be available if they are collected within sixty days of
the end of the current fiscal period. Revenues susceptible to accrual include property taxes and interest
earned on investments. Property taxes receivable at the end of the fiscal year are treated as deferred
inflows because they are not considered available to pay liabilities of the current period. Expenditures
are recognized in the accounting period in which the liability is incurred, if measurable, except for
unmatured interest on long-term debt, which is recognized when due.
Note 2 further details the adjustments from the governmental fund presentation to the government -
wide presentation.
Use of Restricted Resources
When both restricted and unrestricted resources are available for use, the District uses restricted
resources first, then unrestricted resources as they are needed.
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Prepaid Items
Certain payments made by the District reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government -wide and fund financial statements.
Receivables
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. Receivables from and payables to external parties are
reported separately and are not offset unless a legal right of offset exists. At November 30, 2025, an
allowance of $1,900 was provided for possible uncollectible property taxes.
Interfund Activity
During the course of operations, transactions occur between individual funds. This can include
internal transfers, payables and receivables. This activity is combined as internal balances and is
eliminated in both the government -wide and fund financial statement presentation.
Capital Assets
Capital assets do not provide financial resources at the fund level, and, therefore, are reported only in
the government -wide statements. The District defines capital assets as assets with an initial cost that
exceeds the capitalization threshold for the asset class and an estimated useful life in excess of one
year. Capital assets that individually are below the capitalization threshold but, in the aggregate, are
above the threshold are capitalized. Subsequent replacements of these assets that do not exceed the
threshold are not capitalized. The District's capitalization threshold for infrastructure assets is $50,000.
The threshold for subscription -based information technology arrangements (SBITAs) is $100,000.
Capital assets are recorded at historical cost or estimated historical cost. Donated capital assets are
recorded at acquisition value, which is the price that would be paid to acquire the asset on the
acquisition date. The District has not capitalized interest incurred during the construction of its capital
assets. The costs of normal maintenance and repairs that do not add to the value of the assets or
materially extend asset lives are not capitalized.
Depreciable capital assets, which primarily consist of drainage facilities, are depreciated using the
straight-line method as follows:
Assets Useful Life
Infrastructure 45 years
Landscaping improvements 20 years
The District's detention facilities and drainage channels are considered improvements to land and are
non -depreciable.
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Deferred Inflows and Outflows of Financial Resources
A deferred inflow of financial resources is the acquisition of resources in one period that is applicable
to a future period, while a deferred outflow of financial resources is the consumption of financial
resources in one period that is applicable to a future period. A deferred inflow results from the
acquisition of an asset without a corresponding revenue or assumption of a liability. A deferred
outflow results from the use of an asset without a corresponding expenditure or reduction of a liability.
At the fund level, property taxes receivable not collected within 60 days of fiscal year end do not meet
the availability criteria required for revenue recognition and are recorded as deferred inflows of
financial resources. Additionally, collections of the 2025 property tax levy are not considered current
year revenues and, consequently, are also reported as deferred property taxes.
Deferred inflows of financial resources at the government -wide level consist of the 2025 property tax
levy, which was levied to finance the 2026 fiscal year.
Net Position — Governmental Activities
Governmental accounting standards establish the following three components of net position:
Net investment in capital assets — represents the District's investments in capital assets, less any
outstanding debt or other borrowings used to acquire those assets.
Restricted — consists of financial resources that are restricted for a specific purpose by enabling
legislation or external parties.
Unrestricted — resources not included in the other components.
Fund Balances — Governmental Funds
Governmental accounting standards establish the following fund balance classifications:
Nonspendable - amounts that cannot be spent either because they are in nonspendable form or
because they are legally or contractually required to be maintained intact. The District's nonspendable
fund balance consists of prepaid items.
Restricted - amounts that can be spent only for specific purposes because of constitutional provisions
or enabling legislation or because of constraints that are externally imposed by creditors, grantors,
contributors, or the laws or regulations of other governments. The District's restricted fund balances
consist of cash held in escrow for road maintenance in the General Fund, property taxes levied for
debt service and capitalized interest from the sale of bonds in the Debt Service Fund and unspent
bond proceeds in the Capital Projects Fund.
Committed - amounts that can be used only for specific purposes determined by a formal action of
the Board of Directors. The Board is the highest level of decision -making authority for the District.
Commitments may be established, modified, or rescinded only through ordinances or resolutions
24
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
approved by the Board. Committed fund balance also incorporates contractual obligations to the
extent that existing resources in the fund have been specifically committed for use in satisfying those
contractual requirements. The District does not have any committed fund balances.
Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that
are intended to be used for specific purposes. The District has not adopted a formal policy regarding
the assignment of fund balances and does not have any assigned fund balances.
Unassigned - all other spendable amounts in the General Fund.
When an expenditure is incurred for which committed, assigned, or unassigned fund balances are
available, the District considers amounts to have been spent first out of committed funds, then
assigned funds, and finally unassigned funds.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,
and revenues and expenses/expenditures during the period reported. These estimates include, among
others, the collectability of receivables; the useful lives and impairment of capital assets; the value of
amounts due to developer; the value of capital assets transferred to the City of College Station and
Brazos County and the value of capital assets for which the developer has not been fully reimbursed.
Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the
financial statements in the period they are determined to be necessary. Actual results could differ from
the estimates.
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November3O, 2025
Note 2 — Adjustment from Governmental to Government -wide Basis
Reconciliation of the Governmental Funds Balance Sheet to the Statement ofNet Position
Total fund balance, governmental funds $ 1,833,735
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported as assets in governmental
funds.
Historical cost
Less accumulated depreciation
$ 25,876,387
(792,921)
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported as liabilities in the governmental funds. The
difference consists of:
Accrued interest payable (336,569)
Due to developers (39,679,733)
Bonds payable (30,145,000)
Deferred inflows in the fund statements consist of the unavailable
portion of property taxes receivable, as well as collections of the
District's 2025 property tax levy. In the Statement of Net Position ,
deferred inflows consist of the entire 2025 property tax levy.
Fund level deferred property taxes 2,350,842
Government -wide level deferred property taxes (2,337,005)
25,083,466
(70,161,302)
13,837
Total net position - governmental activities $ (43,230,264)
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities
Net change in fund balances - total governmental funds $ 996,131
Governmental funds do not report revenues that are not available to
pay current obligations. In contrast, such revenues are reported in the
Statement of Activities when earned. The difference is for property taxes
and penalties and interest.
Financial reporting for capital assets varies significantly between the
fund statements and the government -wide statements. Reporting at
the fund level focuses on the impact of transactions on financial
resources (i.e., cash), while reporting at the government -wide level
seeks to allocate the cost of the acquisition of capital assets over their
useful lives and to measure the economic impact of developer
financing of capital assets used by the District or conveyed to other
governmental entities. Differences during the current fiscal year are for
the following:
Capital outlays
Transfers to other governments
Depreciation expense
Financial reporting for certain obligations varies between the fund
statements and the government -wide statements. At the fund level, the
focus is on increases and decreases of financial resources as debt is
issued and repaid. At the government -wide level, the focus is on
measuring and reporting on changes in the District's obligation to
repay liabilities in the future. Differences during the current fiscal year
are for the following:
Issuance of long-term debt
Developer advances
Repayment of developer advances
Principal payments
Interest expense accrual
Change in net position of governmental activities
Note 3 — Prior Period Restatement
$ 12,190,839
(8,903,399)
(246,820)
(14,500,000)
(1,550,000)
224,559
335,000
(173,654)
13,366
3,040,620
(15,664,095)
$ (11,613,978)
In a previous fiscal year, the District recorded liabilities related to unpaid legal expenses incurred for
the District's creation. During the current year, it was determined that the District had paid these
amounts in the 2023 fiscal year but did not correctly eliminate the liabilities for those expenses. As a
27
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
result, for the fiscal year ended November 30, 2023, professional fees and accrued legal expenses were
overstated in the General Fund and Capital Projects Fund. Accordingly, the District restated its
beginning balances to reduce current liabilities and increase fund balances and net position in the
current year. Comparative information in the Management's Discussion and Analysis and
supplementary schedules have been restated.
The effect of these adjustments on beginning fund balance and net position are as follows:
Capital
General Projects
Fund Fund Net Position
Beginning balance, as reported $ 416,936 $ 7,952 $ (31,744,617)
Change due to correction of error - legal fees 104,220 24,111 128,331
Beginning net position, as restated $ 521,156 $ 32,063 $ (31,616,286)
Note 4 — Deposits and Investments
Deposit Custodial Credit Risk
Custodial credit risk as it applies to deposits (i.e. cash) is the risk that, in the event of the failure of the
depository institution, a government will not be able to recover its deposits or will not be able to
recover collateral securities. The Public Funds Collateral Act (Chapter 2257, Texas Government Code)
requires that all of the District's deposits with financial institutions be covered by federal depository
insurance and, if necessary, pledged collateral held by a third -party custodian. The act further specifies
the types of securities that can be used as collateral. The District's written investment policy establishes
additional requirements for collateralization of deposits.
Restricted Cash
As discussed in Note 12, the District entered into that First Supplement to Interlocal and Funding
Agreement for the Maintenance of Roads between Brazos County and the District, as well as a related
escrow agreement with Central Bank, the Escrow Agent. Pursuant to the agreement, the District has
$58,634 in an escrow account, which is reported as restricted cash in the General Fund.
Investments
The District is authorized by the Public Funds Investment Act (Chapter 2256, Texas Government Code)
to invest in the following: (1) obligations, including letters of credit, of the United States or its agencies
and instrumentalities, including Federal Home Loan Banks, (2) direct obligations of the State of Texas
or its agencies and instrumentalities, (3) certain collateralized mortgage obligations, (4) other
obligations, which are unconditionally guaranteed or insured by the State of Texas or the United States
or its agencies or instrumentalities, including obligations that are fully guaranteed or insured by the
Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States, (5)
certain A rated or higher obligations of states and political subdivisions of any state, (6) bonds issued,
assumed or guaranteed by the State of Israel, (7) certain insured or collateralized certificates of deposit
28
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November 30, 2025
and share certificates, (8) certain fully collateralized repurchase agreements, (9) bankers' acceptances
with limitations, (10) commercial paper rated A-1 or P-1 or higher and a maturity of 270 days or less,
(11) no-load money market mutual funds and no-load mutual funds, with limitations, (12) certain
guaranteed investment contracts, (13) certain qualified governmental investment pools and (14) a
qualified securities lending program.
The District has adopted a written investment policy to establish the principles by which the District's
investment program should be managed. This policy further restricts the types of investments in which
the District may invest.
As of November 30, 2025, the District's investments consist of the following:
Weighted
Carrying Average
Type Fund Value Rating Maturity
Texas CLASS General $ 1,951,457
Debt Service 1,366,043
Capital Projects 32,254
$ 3,349,754 AAAm Am 43 days
Texas CLASS
The District participates in Texas Cooperative Liquid Assets Securities System (Texas CLASS). Texas
CLASS is managed by an elected Board of Trustees consisting of members of the pool. Additionally,
the Board of Trustees has established an advisory board, the function of which is to provide guidance
on investment policies and strategies. The Board of Trustees has selected Public Trust Advisors, LLC
as the program administrator and UMB Bank N.A., as the custodian.
The District's investment in Texas CLASS is reported at fair value because Texas CLASS uses fair
value to report investments (other than repurchase agreements which are valued at amortized cost).
Governmental accounting standards establish the following hierarchy of inputs used to measure fair
value: Level 1 inputs are based on quoted prices in active markets, Level 2 inputs are based on
significant other observable inputs, and Level 3 inputs are based on significant unobservable inputs.
The District's investment in Texas CLASS is measured using published fair value per share (level 1
inputs).
Investments in Texas CLASS may be withdrawn via wire transfer on a same day basis, as long as the
transaction is executed by 4 p.m. ACH withdrawals made by 4 p.m. will settle on the next business
day.
Investment Credit and Interest Rate Risk
Investment credit risk is the risk that the investor may not recover the value of an investment from
the issuer, while interest rate risk is the risk that the value of an investment will be adversely affected
29
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
by changes in interest rates. The District's investment policies do not address investment credit and
interest rate risk beyond the rating and maturity restrictions established by state statutes.
Note 5 — Interfund Balances and Transactions
Amounts due to/from other funds at November 30, 2025, consist of the following:
Receivable Fund Payable Fund
General Fund Debt Service Fund
Amounts
$ 26,555
Purpose
Maintenance and road maintenance tax
collections not remitted as of year end
Amounts reported as internal balances between funds are considered temporary balances and will be
paid during the following fiscal year.
Note 6 — Capital Assets
A summary of changes in capital assets, for the year ended November 30, 2025, is as follows:
Beginning
Balances
Capital assets not being depreciated
Easements, land and improvements $ 11,375,313
Capital assets being depreciated
Drainage facilities
Landscaping improvements
Less accumulated depreciation
Drainage facilities
Landscaping improvements
Subtotal depreciable capital assets, net
7,713,467
22,560
7,736,027
(540,461)
(5,640)
(546,101)
7,189,926
Addtions/
Adjustments
Ending
Balances
$ 3,320,580 $ 14,695,893
Capital assets, net $ 18,565,239 $
Depreciation expense for the current fiscal year was $246,820.
Note 7 — Due to Developers
3,444,467 11,157,934
22,560
3,444,467 11,180,494
(245,692) (786,153)
(1,128) (6,768)
(246,820) (792,921)
3,197,647 10,387,573
6,518,227 $ 25,083,466
The District has entered into financing agreements with its developers for the financing of the
construction of water, sewer and drainage facilities and road improvements. Under the agreements,
the developers will advance funds for the construction of facilities to serve the District. The developers
will be reimbursed from proceeds of future bond issues or other lawfully available funds, subject to
approval by TCEQ, as applicable. The District does not record the capital asset and related liability
on the government -wide statements until construction of the facilities is complete. The initial cost is
30
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
estimated based on construction costs plus 10-15% for engineering and other fees. Estimates are trued
up when the developer is reimbursed.
The District's developers have also advanced funds to the District for operating expenses.
Changes in the estimated amounts due to developers during the fiscal year are as follows:
Due to developers, beginning of year $ 34,876,685
Developer reimbursements (10,421,945)
Developer funded construction and adjustments 15,449,552
Repayment of operating advances (224,559)
Due to developers, end of year $ 39,679,733
In addition, the District will owe the developers approximately $16,670,000, which is included in the
schedule of contractual commitments below. The projects in this schedule are in varying stages of
completion and, as previously noted, will be reported in the government -wide financial statements
upon completion of construction. The exact amount due to the developer is not known until approved
by the TCEQ and verified by the District's auditor.
Contract
Amount*
Southern Pointe:
Section 403 - replat $ 170,000
Section 500 - utilities 1,780,000
Section 501 - utilities 1,840,000
Section 503 - utilities 4,730,000
Section 600 - utilities 3,410,000
Section 601 - utilities 2,440,000
Section 701 - utilities 2,300,000
$ 16,670,000
* Rounded to nearest $10,000
Note 8 — Long -Term Debt
Long-term debt is comprised of the following:
Bonds payable
Due within one year
$ 30,145,000
$ 655,000
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Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
The District's bonds payable at November 30, 2025, consists of unlimited tax bonds as follows:
Amounts
Series Outstanding
2020 $ 1,775,000
Road
2022 1,465,000
2023 3,855,000
2024 8,550,000
Road
2025 14,500,000
$ 30,145,000
Original
Issue
$ 2,000,000
1,590,000
4,005,000
8,715,000
14,500,000
Interest
Rates
1.50% - 3.15%
2.00% - 3.00%
4.125% - 6.625%
4.00% - 6.50%
4.00% - 6.50%
Maturity Date,
Serially,
Beginning/
Ending
September 1,
2021/2050
September 1,
2023/2046
September 1,
2024/2050
September 1,
2025/2050
September 1,
2026/2050
Interest
Payment
Dates
March 1,
September
March 1,
September
March 1,
September
March 1,
September
March 1
September
1
1
1
1
1
Call
Dates
September 1,
2026
September 1,
2027
September 1,
2028
September 1,
2030
September 1,
2030
Payments of principal and interest on all series of bonds are to be provided from taxes levied on all
properties within the District. Investment income realized by the Debt Service Fund from investment
of idle funds will be used to pay outstanding bond principal and interest. The District is in compliance
with the terms of its bond resolutions.
At November 30, 2025, the District had authorized but unissued bonds in the amount of $215,505,000
for water, sewer and drainage facilities and the refunding of such bonds; $93,345,000 for road
improvements and the refunding of such bonds.
On August 28, 2025, the District issued its $14,500,000 Series 2025 Unlimited Tax Bonds at a net
effective interest rate of 4.956859%. Proceeds of the bonds were used (1) to reimburse developers for
the following: the construction of capital assets within the District; engineering, and other costs
associated with the construction of capital assets; the acquisition of land for certain District facilities;
operating advances; and creation costs, (2) to pay developer interest at the net effective interest rate
of the bonds and (3) to pay capitalized interest into the Debt Service Fund.
The change in the District's long-term debt during the year is as follows:
Bonds payable, beginning of year $ 15,980,000
Bonds issued 14,500,000
Bonds retired (335,000)
Bonds payable, end of year $ 30,145,000
32
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
As of November 30, 2025, annual debt service requirements on bonds outstanding are as follows:
Year
2026 $
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Note 9 — Property Taxes
Principal
655,000 $
705,000
740,000
770,000
815,000
850,000
895,000
935,000
980,000
1,020,000
1,055,000
1,105,000
1,160,000
1,200,000
1,270,000
1,320,000
1,385,000
1,455,000
1,525,000
1,595,000
1,665,000
1,640,000
1,725,000
1,795,000
1,885,000
30,145,000 $
Interest
1,379,272
1,283,548
1,242,061
1,203,789
1,166,106
1,126,221
1,093,952
1,059,825
1,024,026
986,328
947,025
905,506
861,282
814,206
764,544
711,064
655,414
596,151
533,369
467,363
396,435
322,343
247,879
169,242
86,675
20,043,626
Totals
$ 2,034,272
1,988,548
1,982,061
1,973,789
1,981,106
1,976,221
1,988,952
1,994,825
2,004,026
2,006,328
2,002,025
2,010,506
2,021,282
2,014,206
2,034,544
2,031,064
2,040,414
2,051,151
2,058,369
2,062,363
2,061,435
1,962,343
1,972,879
1,964,242
1,971,675
$ 50,188,626
On November 3, 2015, the voters of the District authorized the District's Board of Directors to levy
taxes annually for use in financing general operations limited to $1.00 per $100 of assessed value. In
addition, the voters of the District authorized the District's Board of Directors to levy taxes annually
for road maintenance limited to $0.25 per $100 of assessed value. The District's bond resolutions
require that property taxes be levied for use in paying interest and principal on long-term debt and for
use in paying the cost of assessing and collecting taxes. Taxes levied to finance debt service
requirements on long-term debt are without limitation as to rate or amount.
All property values and exempt status, if any, are determined by the Brazos Central Appraisal District.
Assessed values are determined as of January 1 of each year, at which time a tax lien attaches to the
related property. Taxes are levied around October/November, are due upon receipt and are
delinquent the following February 1. Penalty and interest attach thereafter.
33
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Property taxes are collected based on rates adopted in the year of the levy. The District's 2025 fiscal
year was financed through the 2024 tax levy, pursuant to which the District levied property taxes of
$1.00 per $100 of assessed value, of which $0.235 was allocated to maintenance and operations, $0.015
was allocated to road maintenance and operations, $0.23 was allocated to debt service, and $0.52 was
allocated to road debt service. The resulting tax levy was $1,785,566 on the adjusted taxable value of
$178,556,635.
Property taxes levied each October are intended to finance the next fiscal year and are, therefore, not
considered available for the District's use during the current fiscal year. Consequently, 2025 levy
collections in the amount of $65,313 have been included with deferred property taxes and are recorded
as deferred inflows of resources on the Governmental Funds Balance Sheet. On the government -wide
Statement of Net Position, the full 2025 tax levy of $2,337,005 is reported as deferred inflows. These
amounts will be recognized as revenue in 2026.
Net property taxes receivable, at November 30, 2025, consisted of the following:
Current year taxes receivable $ 2,271,692
Prior years taxes receivable 13,173
Less allowance for uncollectible accounts (1,900)
2,282,965
Penalty and interest receivable 2,563
Net property taxes receivable $ 2,285,528
Note 10 — Transfers to Other Governments
In accordance with an agreement between the District and the City of College Station (the "City"),
the District transfers all of its water and sewer facilities to the City for operations and maintenance
upon completion of constructions. See Note 11 for additional information.
Additionally, the District and Brazos County (the "County") have entered into that First Supplement
to Interlocal and Funding Agreement for the Maintenance of Roads for the construction of road
facilities within the boundaries of the District and, when completed, to convey title to the facilities to
the County for acceptance into the County public road system. See Note 12 for additional information.
Accordingly, the District does not record these capital assets in the Statement ofNetPosition, but instead
reports the completed projects as transfers to other governments on the Statement of Activities. The
estimated cost of each project is trued -up when the developer is subsequently reimbursed. For the
year ended November 30, 2025, the District reported transfers to other governments in the amount
of $8,903,399 for projects completed and transferred.
34
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
Note 11— Agreement with the City of College Station
Utility Agreement
On May 31, 2016, subsequently amended December 2, 2016, the District entered into a Utility
Agreement (the "Agreement") with the City of College Station (the "City") for construction and
extension of water distribution lines and sanitary sewer collection systems to serve the District. As the
system is acquired or constructed, the District shall transfer the system to the City but will reserve a
security interest in the system and provide service to all users in the District. The term of the
Agreement is for 30 years.
Water and sewer rates charged by the City (before surcharges below are added) to users in the District,
shall be the same rates charged to similar classifications of users in non -municipal utility district areas
and within the City. All revenue derived from these charges belongs to the City. In lieu of impact fees,
the City may levy a surcharge of up to fifty percent on then -current water rates for each customer in
the District to recover the capital costs of providing such services.
The Agreement further states that the City will participate in the construction costs of certain
oversized off -site infrastructure required to provide services to the District and to serve land outside
of the District. Construction of the offsite was completed in previous fiscal years and transferred to
the City. In the current year, the District requested the City's participation amount of $69,170. The
payment from the City was received after the end of the fiscal year.
Strategic Partnership Agreement
On May 31, 2016, the District entered into a Strategic Partnership Agreement (the "SPA Agreement")
with the City of College Station (the "City"). The SPA Agreement provides for a limited purpose
annexation of certain areas of the District that have been developed for retail and commercial
purposes. The City agrees not to annex the District for full purposes during the 30-year term of the
SPA Agreement. The District will continue to provide drainage services to all properties within its
boundaries until full annexation.
Note 12 — Interlocal and Funding Agreement for the Maintenance of Roads
On December 27, 2016, the District entered into an Interlocal and Funding Agreement for the
Maintenance of Roads (the "Interlocal Agreement") with Brazos County and its developer, Southern
Pointe LLC, ("the "Developer"). On March 5, 2024, the District and Brazos County entered into that
First Supplement to Interlocal and Funding Agreement for the Maintenance of Roads. The District
and/or the Developer shall construct or improve new or existing roads to serve the District to
standards required by the City. Subject to such standards, the County agrees to accept the roads into
the County system.
On January 5, 2024, the District entered into an Escrow Agreement with Central Bank (the "Escrow
Agreement") as required by the Interlocal Agreement for the maintenance of roads. Pursuant to the
Escrow Agreement, Central Bank will hold the funds required for the maintenance of roads.
35
Brazos County Municipal Utility District No. 1
Notes to Financial Statements
November30, 2025
The District has agreed to be responsible for all costs of maintenance of the roads and to pay for
maintenance costs by keeping a maintenance bond or surety in place until either the District is annexed
into the City or the District maintains a separate account with a sufficient balance for road
maintenance, whichever is earlier. As of November 30, 2025, the District has $58,634 held in escrow
for the maintenance of roads, which is reported as restricted cash.
Note 13 — Settlement Agreement for Utility Easement
On June 2, 2025, the District entered into an Agreement and Release of Claims (the "Agreement")
with Animate Habitat, Ltd. (the "Landowner") in connection with the acquisition of an easement for
offsite utilities to serve the District. Pursuant to the Agreement, the District agreed to pay the
Landowner $1,750,000 in exchange for the easement. During the current year, the District made
payments to the Landowner totaling $264,270. The District's remaining liability under the Agreement
as of November 30, 2025, was $1,485,730. Final payment of the remaining settlement amount must
be made to the Landowner no later than December 31, 2025. During the current year, the developers
advanced funds to the District to finance the total settlement amount.
Note 14 — Risk Management
The District is exposed to various risks of loss related to torts: theft of, damage to and destruction of
assets; errors and omissions; and personal injuries. The risk of loss is covered by commercial insurance.
There have been no significant reductions in insurance coverage from the prior year. Settlement
amounts have not exceeded insurance coverage for the current year or the three prior years.
Note 15 — Subsequent Event
On January 21, 2026, the District issued its $7,375,000 Series 2026 Unlimited Tax Road Bonds at a
net effective rate of 4.617908%. Proceeds from the bonds were used to reimburse the District's
developers for operating advances and infrastructure improvements in the District.
36
Required Supplementary Information
Brazos County Municipal Utility District No. 1
Required Supplementary Information - Budgetary Comparison Schedule - General Fund
For the Year Ended November 30, 2025
Variance
Original and Positive
Final Budget Actual (Negative)
Revenues
Property taxes $ 441,000 $ 443,158 $ 2,158
Investment earnings 33,500 29,147 (4,353)
Total Revenues 474,500 472,305 (2,195)
Expenditures
Operating and administrative
Professional fees 224,000 180,131 43,869
Contracted services 41,500 41,927 (427)
Repairs and maintenance 77,000 23,987 53,013
Administrative 25,320 29,616 (4,296)
Other 3,000 4,584 (1,584)
Capital outlay 60,000 1,768,894 (1,708,894)
Total Expenditures 430,820 2,049,139 (1,618,319)
Revenues Over/(Under) Expenditures 43,680 (1,576,834) (1,620,514)
Other Financing Sources
Developer advances
Net Change in Fund Balance
1,550,000 1,550,000
43,680 (26,834) (70,514)
Fund Balance
Beginning of the year 521,156 521,156
End of the year $ 564,836 $ 494,322 $ (70,514)
38
Brazos County Municipal Utility District No. 1
Notes to Required Supplementary Information
November30, 2025
Budgets and Budgetary Accounting
An annual unappropriated budget is adopted for the General Fund by the District's Board of
Directors. The budget is prepared using the same method of accounting as for financial reporting.
There were no amendments to the budget during the year.
39
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40
Texas Supplementary Information
41
Brazos County Municipal Utility District No. 1
TSI-1. Services and Rates
November 30, 2025
1. Services provided by the District During the Fiscal Year:
Retail Water
Retail Wastewater
Parks / Recreation
Wholesale Water
Wholesale Wastewater
Fire Protection
❑ Solid Waste / Garbage
❑ Flood Control
❑X Roads
❑X Drainage
❑ Irrigation
❑ Security
Participates in joint venture, regional system and/or wastewater service (other than emergency interconnect)
Other (Specify): Water and sewer services provided by the City of College Station
2. Retail Service Providers
a. Retail Rates for a 5/8" meter (or equivalent):
Rate per 1,000
Minimum Minimum Flat Rate Gallons Over
Charge Usage (Y / N) Minimum Usage
Usage Levels
Water: to
Wastewater: to
Surcharge: to
District employs winter averaging for wastewater usage? ❑ Yes ❑ No
Total charges per 10,000 gallons usage: Water Wastewater
b. Water and Wastewater Retail Connections:
Total Active
Meter Size Connections Connections ESFC Factor
Unmetered x 1.0
less than 3/4" x 1.0
1" x2.5
1.5" x 5.0
2" x 8.0
3" x 15.0
4" x 25.0
6" x 50.0
8" x 80.0
10" x 115.0
Total Water
Total Wastewater
See accompanying auditor's report.
x 1.0
Active
ESFC'S
42
Brazos County Municipal Utility District No. 1
TSI-1. Services and Rates
November 30, 2025
3. Total Water Consumption during the fiscal year (rounded to the nearest thousand):
Gallons pumped into system: N/A Water Accountability Ratio:
(Gallons billed / Gallons pumped)
Gallons billed to customers: N/A N/A
4. Standby Fees (authorized only under TWC Section 49.231):
Does the District have Debt Service standby fees? Yes No
If yes, Date of the most recent commission Order:
Does the District have Operation and Maintenance standby fees? Yes No
If yes, Date of the most recent commission Order:
5. Location of District:
Is the District located entirely within one county? Yes No
County(ies) in which the District is located: Brazos County
Is the District located within a city? Entirely oPartly Not at all E
City(ies) in which the District is located:
Is the District located within a city's extra territorial jurisdiction (ETJ)?
Entirely EPartly n Not at all
ETJs in which the District is located: City of College Station
Are Board members appointed by an office outside the district? Yes No
If Yes, by whom?
See accompanying auditor's report.
43
Brazos County Municipal Utility District No. 1
TSI-2. General Fund Expenditures
For the Year Ended November 30, 2025
Professional fees
Legal $ 122,948
Audit 16,500
Engineering 40,683
180,131
Contracted services
Bookkeeping 37,427
Tax assessor 4,500
41,927
Repairs and maintenance 23,987
Administrative
Directors fees 11,094
Printing and office supplies 883
Insurance 3,680
Other 13,959
29,616
Other 4,584
Capital outlay 1,768,894
Total expenditures $ 2,049,139
See accompanying auditor's report.
44
Brazos County Municipal Utility District No. 1
TSI-3. Investments
November30, 2025
Fund
General
Texas CLASS
Debt Service
Texas CLASS
Capital Projects
Texas CLASS
Interest Maturity Balance at End
Rate Date of Year
Variable N/A $ 1,951,457
Variable N/A 1,366,043
Variable N/A 32,254
Total - All Funds $ 3,349,754
See accompanying auditor's report.
45
Brazos County Municipal Utility District No. 1
TSI-4. Taxes Levied and Receivable
November 30, 2025
Beginning Taxes Receivable
Adjustments
Adjusted Receivable
2025 Original Tax Levy
Adjustments
2025 Adjusted Tax Levy
Total to be accounted for
Tax collections:
Current year
Prior years
Total Collections
Maintenance
Taxes
$ 384,360
2,933
387,293
355,376
18,545
373,921
761,214
10,450
384,469
394,919
Ending Taxes Receivable $ 366,295
Taxes Receivable, By Years
2025 $ 363,471
2024 2,538
2023 and prior 286
Ending Taxes Receivable $ 366,295
Property Valuations:
Land
Improvements
Personal Property
Exemptions
Total Property Valuations
Tax Rates per $100 Valuation:
Maintenance tax rates
Road maintenance tax rates
Debt service tax rates
Road debt service tax rates
Total Tax Rates per $100 Valuation
Adjusted Tax Levy:
Percentage of Taxes Collected
to Taxes Levied **
Road
Maintenance
Taxes
$ 24,519
231
24,750
44,422
2,318
46,740
71,490
1,306
24,560
25,866
45,624
45,434
162
28
45,624
2025
$ 64,783,356
180,897,563
309,117
(12,289,454)
$ 233,700,582
WSD Debt
Service Taxes
$ 376,009
3,041
379,050
1,221,603
63,750
1,285,353
1,664,403
35,922
376,482
412,404
$ 1,251,999
Road Debt
Service Taxes
$ 849,944
7,596
857,540
599,696
31,295
630,991
1,488,531
17,635
851,849
869,484
$ 619,047
$ 1,249,431 $
2,484
84
$ 1,251,999 $
2024
$ 47,485,759
136,915,089
216,669
(6,060,882)
$ 178,556,635
$ 0.16 $
0.02
0.55
0.27
$ 1.00
$ 2,337,005
2.79%
$
$
0.235
0.015
0.230
0.520
1.000
1,785,566
* Maximum Maintenance Tax Rate Approved by Voters: $1.00 on
* Maximum Road Maintenance Tax Rate Approved by Voters: $0.25
99.40%
613,356
5,616
75
619,047
2023
$ 39,029,995
91,218,634
112,464
(3,888,421)
$ 126,472,672
$ 0.585
0.015
0.355
0.045
$ 1.000
$ 1,264,727
Totals
$ 1,634,832
13,801
1,648,633
2,221,097
115,908
2,337,005
3,985,638
65,313
1,637,360
1,702,673
$ 2,282,965
$ 2,271,692
10,800
473
$ 2,282,965
2022
$ 20,779,758
43,912,475
92,689
(1,023,730)
$ 63,761,192
$ 0.630
0.095
0.275
$ 1.00
$ 637,612
99.96% 99.96%
November 3.2015
on November 3.2015
** Calculated as taxes collected for a tax year divided by taxes levied for that tax year.
See accompanying auditor's report.
46
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
Series 2020 Road --by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 50,000 $ 50,960 $ 100,960
2027 55,000 49,960 104,960
2028 55,000 48,805 103,805
2029 55,000 47,595 102,595
2030 60,000 46,330 106,330
2031 60,000 44,890 104,890
2032 65,000 43,390 108,390
2033 65,000 41,700 106,700
2034 70,000 39,945 109,945
2035 70,000 37,985 107,985
2036 60,000 36,025 96,025
2037 60,000 34,225 94,225
2038 65,000 32,425 97,425
2039 65,000 30,475 95,475
2040 70,000 28,525 98,525
2041 70,000 26,425 96,425
2042 75,000 24,325 99,325
2043 75,000 22,000 97,000
2044 80,000 19,675 99,675
2045 85,000 17,195 102,195
2046 85,000 14,560 99,560
2047 90,000 11,925 101,925
2048 95,000 9,135 104,135
2049 95,000 6,143 101,143
2050 100,000 3,150 103,150
$ 1,775,000 $ 767,768 $ 2,542,768
See accompanying auditor's report.
47
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
Series 2022--by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 45,000 $ 39,694 $ 84,694
2027 45,000 38,794 83,794
2028 50,000 37,894 87,894
2029 50,000 36,894 86,894
2030 55,000 35,894 90,894
2031 55,000 34,725 89,725
2032 60,000 33,488 93,488
2033 60,000 31,988 91,988
2034 65,000 30,488 95,488
2035 65,000 28,700 93,700
2036 70,000 26,913 96,913
2037 70,000 24,988 94,988
2038 75,000 23,063 98,063
2039 75,000 21,000 96,000
2040 80,000 18,750 98,750
2041 80,000 16,350 96,350
2042 85,000 13,950 98,950
2043 90,000 11,400 101,400
2044 95,000 8,700 103,700
2045 95,000 5,850 100,850
2046 100,000 3,000 103,000
$ 1,465,000 $ 522,523 $ 1,987,523
See accompanying auditor's report.
48
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
Series 2023--by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 80,000 $ 171,125 $ 251,125
2027 85,000 165,825 250,825
2028 90,000 160,194 250,194
2029 95,000 154,231 249,231
2030 100,000 150,313 250,313
2031 105,000 146,188 251,188
2032 110,000 141,856 251,856
2033 115,000 137,319 252,319
2034 120,000 132,575 252,575
2035 125,000 127,625 252,625
2036 130,000 122,469 252,469
2037 140,000 117,106 257,106
2038 145,000 111,331 256,331
2039 150,000 105,350 255,350
2040 160,000 99,163 259,163
2041 165,000 92,363 257,363
2042 175,000 85,350 260,350
2043 185,000 77,913 262,913
2044 195,000 70,050 265,050
2045 205,000 61,518 266,518
2046 215,000 52,550 267,550
2047 225,000 43,143 268,143
2048 235,000 33,300 268,300
2049 245,000 22,724 267,724
2050 260,000 11,700 271,700
$ 3,855,000 $ 2,593,281 $ 6,448,281
See accompanying auditor's report.
49
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
Series 2024 Road --by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 175,000 $ 372,288 $ 547,288
2027 180,000 360,913 540,913
2028 190,000 349,212 539,212
2029 200,000 336,863 536,863
2030 210,000 323,863 533,863
2031 225,000 310,212 535,212
2032 235,000 301,212 536,212
2033 250,000 291,812 541,812
2034 260,000 281,812 541,812
2035 275,000 271,412 546,412
2036 290,000 260,412 550,412
2037 305,000 248,812 553,812
2038 320,000 236,613 556,613
2039 335,000 223,813 558,813
2040 355,000 210,412 565,412
2041 375,000 196,212 571,212
2042 390,000 181,213 571,213
2043 415,000 165,613 580,613
2044 435,000 148,494 583,494
2045 460,000 130,550 590,550
2046 480,000 111,575 591,575
2047 505,000 91,775 596,775
2048 535,000 70,944 605,944
2049 560,000 48,875 608,875
2050 590,000 25,075 615,075
$ 8,550,000 $ 5,549,987 $ 14,099,987
See accompanying auditor's report.
50
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
Series 2025--by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 305,000 $ 745,205 $ 1,050,205
2027 340,000 668,056 1,008,056
2028 355,000 645,956 1,000,956
2029 370,000 628,206 998,206
2030 390,000 609,706 999,706
2031 405,000 590,206 995,206
2032 425,000 574,006 999,006
2033 445,000 557,006 1,002,006
2034 465,000 539,206 1,004,206
2035 485,000 520,606 1,005,606
2036 505,000 501,206 1,006,206
2037 530,000 480,375 1,010,375
2038 555,000 457,850 1,012,850
2039 575,000 433,568 1,008,568
2040 605,000 407,694 1,012,694
2041 630,000 379,714 1,009,714
2042 660,000 350,576 1,010,576
2043 690,000 319,225 1,009,225
2044 720,000 286,450 1,006,450
2045 750,000 252,250 1,002,250
2046 785,000 214,750 999,750
2047 820,000 175,500 995,500
2048 860,000 134,500 994,500
2049 895,000 91,500 986,500
2050 935,000 46,750 981,750
$ 14,500,000 $ 10,610,067 $ 25,110,067
See accompanying auditor's report.
51
Brazos County Municipal Utility District No. 1
TSI-5. Long -Term Debt Service Requirements
All Bonded Debt Series --by Years
November 30, 2025
Interest Due
Due During Fiscal Principal Due March 1,
Years Ending September 1 September 1 Total
2026 $ 655,000 $ 1,379,272 $ 2,034,272
2027 705,000 1,283,548 1,988,548
2028 740,000 1,242,061 1,982,061
2029 770,000 1,203,789 1,973,789
2030 815,000 1,166,106 1,981,106
2031 850,000 1,126,221 1,976,221
2032 895,000 1,093,952 1,988,952
2033 935,000 1,059,825 1,994,825
2034 980,000 1,024,026 2,004,026
2035 1,020,000 986,328 2,006,328
2036 1,055,000 947,025 2,002,025
2037 1,105,000 905,506 2,010,506
2038 1,160,000 861,282 2,021,282
2039 1,200,000 814,206 2,014,206
2040 1,270,000 764,544 2,034,544
2041 1,320,000 711,064 2,031,064
2042 1,385,000 655,414 2,040,414
2043 1,455,000 596,151 2,051,151
2044 1,525,000 533,369 2,058,369
2045 1,595,000 467,363 2,062,363
2046 1,665,000 396,435 2,061,435
2047 1,640,000 322,343 1,962,343
2048 1,725,000 247,879 1,972,879
2049 1,795,000 169,242 1,964,242
2050 1,885,000 86,675 1,971,675
$ 30,145,000 $ 20,043,626 $ 50,188,626
See accompanying auditor's report.
52
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53
Brazos County Municipal Utility District No. 1
TSI-6. Change in Long -Term Bonded Debt
November30, 2025
Interest rate
Dates interest payable
Maturity dates
Beginning bonds outstanding
Bonds issued
Bonds retired
Ending bonds outstanding
Interest paid during fiscal year
Paying agent's name and city
Series 2025
All Other Series
Bond Authority:
Amount Authorized by Voters
Amount Issued
Remaining To Be Issued
Series 2020
Road
1.50% - 3.15%
3/1; 9/1
9/1/21 - 9/1/50
Bond Issue
Series 2022
2.00% - 3.00%
3/1; 9/1
9/1/23 - 9/1/46
Series 2023
4.125% - 6.625%
3/1; 9/1
9/1/24 - 9/1/50
$ 1,825,000 $ 1,510,000 $
(50,000)
$ 1,775,000 $
$ 51,960 $
(45,000)
1,465,000 $
40,594 $
Series 2024
Road
4.00% - 6.50%
3/1; 9/1
9/1/25 - 9/1/50
3,930,000 $
(75,000)
3,855,000 $
176,094 $
8,715,000
(165,000)
8,550,000
383,013
Bank of New York Mellon Trust Company, N.A., Houston, Texas
Bank of New York Mellon Trust Company, N.A., Dallas, Texas
Water, Sewer and
Drainage Bonds
$ 235,600,000
(20,095,000)
$ 215,505,000
Road Bonds
$ 104,060,000
(10,715,000)
$ 93,345,000
All bonds are secured with tax revenues. Bonds may also be secured with other revenues in combination
with taxes.
Debt Service Fund cash and investments balance as of November 30, 2025:
Average annual debt service payment (principal and interest) for remaining term of all debt:
See accompanying auditor's report.
$ 1,439,215
$ 2,007,545
54
Bond Issue
Series 2025 Totals
4.00% - 6.50%
3/1; 9/1
9/1/26 - 9/1/50
$ - $ 15,980,000
14,500,000 14,500,000
(335,000)
$ 14,500,000 $ 30,145,000
$ - $ 651,661
55
Brazos County Municipal Utility District No. 1
TSI-7a. Comparative Schedule of Revenues and Expenditures - General Fund
For the Last Five Fiscal Years
Amounts
2025 2024 2023** 2022 2021
Revenues
Property taxes $ 443,158 $ 759,850 $ 400,930 $ 248,370 $ 132,055
Miscellaneous 5,508
Investment earnings 29,147 31,587 11,079 726 19
Total Revenues 472,305 791,437 417,517 249,096 132,074
Expenditures
Operating and administrative
Professional fees 180,131 231,792 89,438 134,992 191,448
Contracted services 41,927 40,406 47,236 36,094 14,660
Repairs and maintenance 23,987 48,825 18,359 5,240
Administrative 29,616 22,531 11,847 8,535 9,943
Other 4,584 2,266 5,500 12,577 1,117
Capital outlay 1,768,894 124,551 54,650
Total Expenditures 2,049,139 470,371 227,030 192,198 222,408
Revenues Over/(Under) Expenditures (1,576,834) 321,066 190,487 56,898 (90,334)
Other Financing Sources
Developer advances 1,550,000 117,000 30,000
Internal transfers 152,286 6,430
Net Change in Fund Balance (26,834) 321,066 190,487 326,184 (53,904)
Fund Balance, Beginning of the year 521,156 200,090 9,603 (316,581) (262,677)
End of the year $ 494,322 $ 521,156 $ 200,090 $ 9,603 $ (316,581)
*Percentage is negligible
**2023 Professional fees have been restated due to the correction of an error.
See accompanying auditor's report.
56
Percent of Fund Total Revenues
2025 2024 2023 2022 2021
94% 96% 96% 100% 100%
1%
6% 4% 3% * *
100% 100% 100% 100% 100%
38% 29% 21% 54% 145%
9% 5% 11% 14% 11%
5% 6% 4% 4%
6% 3% 3% 3% 8%
1% * 1% 5% 1%
375% 16% 13%
434% 59% 53% 76% 169%
(334%) 41 % 47% 24% (69%)
Brazos County Municipal Utility District No. 1
TSI-7b. Comparative Schedule of Revenues and Expenditures - Debt Service Fund
For the Last Five Fiscal Years
Amounts
2025 2024 2023 2022 2021
Revenues
Property taxes $ 1,330,706 $ 521,249 $ 235,894 $ 101,557 $ 70,989
Penalties and interest 6,633 7,301 3,659 872 4,089
Miscellaneous 6,415 10,867 2,225 327
Investment earnings 41,606 29,522 15,286 1,955 80
Total Revenues 1,385,360 568,939 257,064 104,711 75,158
Expenditures
Tax collection services 41,003 56,922 19,668 13,547 16,405
Other 8,254 7,032 7,161 6,713
Debt service
Principal 335,000 160,000 85,000 45,000 40,000
Interest and fees 651,660 476,342 182,293 77,997 51,414
Total Expenditures 1,035,917 700,296 294,122 143,257 107,819
Revenues Over/(Under) Expenditures 349,443 (131,357) (37,058) (38,546) (32,661)
Other Financing Sources
Proceeds from sale of bonds
Net Change in Fund Balance
Fund Balance, Beginning of the year
673,331 191,506 181,063 42,193
1,022,774 60,149 144,005 3,647 (32,661)
284,385 224,236 80,231 76,584 109,245
End of the year $ 1,307,159 $ 284,385 $ 224,236 $ 80,231 $ 76,584
*Percentage is negligible
See accompanying auditor's report.
58
Percent of Fund Total Revenues
2025 2024 2023 2022 2021
97% 92% 92% 97% 95%
* 1% 1% 1% 5%
* 2% 1% *
3% 5% 6% 2% *
100% 100% 100% 100% 100%
3% 10% 8% 13% 22%
1% 1% 3% 6%
24% 28% 33% 43% 53%
47% 84% 71% 74% 68%
75% 123% 115% 136% 143%
25% (23%) (15%) (36%) (43%)
Brazos County Municipal Utility District No. 1
TSI-8. Board Members, Key Personnel and Consultants
For the Year Ended November 30, 2025
Complete District Mailing Address: 3200 Southwest Freeway, Suite 2600 Houston, TX 77027
District Business Telephone Number: (713) 860-6400
Submission Date of the most recent District Registration Form
(TWC Sections 36.054 and 49.054): April 14, 2025
Limit on Fees of Office that a Director may receive during a fiscal year:
(Set by Board Resolution -- TWC Section 49.060)
Names:
Board Members
Robert Goodwin
Charles Moreau
Lawrence Hodges
Brian Fisher
Kyle Davis
Consultants
Allen Boone Humphries Robinson LLP
General legal fees
Bond counsel
Municipal Accounts & Consulting, L.P.
B&A Municipal Tax Service, LLC
Brazos Central Appraisal District
Perdue, Brandon, Fielder, Collins
& Mott, LLP
Pape -Dawson Engineers, Inc.
McGrath & Co., PLLC
Post Oak Municipal Advisors LLC
Term of Office
(Elected or
Appointed) or
Date Hired
05/24 - 05/28
05/22 - 05/26
05/24 - 05/28
05/22 - 05/26
05/24 - 05/28
2015
2022
2015
Legislation
2017
2021
2015
2018
Fees of
Office Paid
$ 1,768
1,326
1,326
1,105
2,210
Amounts
Paid
$ 138,516
339,602
43,042
14,789
17,886
1,631
158,893
30,000
231,181
7,200
Expense
Reimburse-
ments Title at Year End
$ 79
42
President
Vice President
Secretary
Assistant Vice
President
140 Assistant Secretary
* Fees of Office are the amounts actually paid to a director during the District's fiscal year.
See accompanying auditor's report.
Attorney
Bookkeeper
Tax Collector
Property Valuation
Delinquent Tax
Attorney
Engineer
Auditor
Financial Advisor
60