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Home My WebLink About12-11-25-7.19 - Resolution - 12/11/2025RESOLUTION NO. 12-11-25-7.19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, CONSENTING TO THE SALE AND ISSUANCE OF UNLIMITED TAX ROAD BONDS, SERIES 2026, FOR THE BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 IN AN AMOUNT NOT TO EXCEED $7,375,000.00. WHEREAS, On January 9, 2014, the City Council of the City of College Station, Texas, passed Resolution No. 01-09-14-01 adopting a city policy setting out the creation, operation, and dissolution of municipal utility districts located within the City's incorporated limits or its extraterritorial jurisdiction (the Policy); and WHEREAS, on March 27, 2014, the City Council of the City of College Station, Texas, consented to the creation of Brazos County Municipal Utility District No. 1 (the District) by Resolution No. 03-27-14-01; and WHEREAS, on May 16, 2016, the City Council of the City of College Station, Texas, approved a Utility Agreement Between the City of College Station and the Brazos County MUD No. 1 (Contract No. 10300449) and a subsequent amendment on December 2, 2016; and WHEREAS, the Utility Agreement authorizes the District to issue, sell, and deliver bonds from time to time, as deemed necessary and appropriate by the Board of Directors of the District, for the purposes, in such form and manner and as permitted or provided by federal law, the general laws of the State of Texas and the City's Consent Resolution; and WHEREAS, the Utility Agreement further requires that the authorizing resolution of the Board of Directors must be approved by the City Council to the extent such resolution is in compliance with the City's Policy; and WHEREAS, the Policy requires that the authorizing order or resolution regarding the issuance of any series of Bonds must be approved by the City Council and must be in compliance with the City's Policy; and WHEREAS, after reviewing the preliminary official statement and other supporting documents furnished by the District, the City has determined that the issuance of Unlimited Tax Road Bonds, Series 2026, in an amount not to exceed $7,375,000.00 is in accordance with the Utility Agreement, adopted resolutions, and all other agreements between the City and the District; now, therefore, Resolution No. 12-11-25-7.19 Page 2 of 3 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That the facts and recitations set forth in this Resolution are declared true and correct. PART 2: That the City Council hereby consents to the sale and issuance of Unlimited Tax Road Bonds, Series 2026, in an amount not to exceed $7,375,000.00 as authorized by the District's Board of Directors by resolution in substantially the form as attached herein in Exhibit A, and with a maturity date extending to 2051. PART 3: That this Resolution shall take effect immediately from and after its passage. ADOPTED this 11th day of December, 2025. ATTEST: APPVFD'��. City Secretary Mayor APPROVED: (19% City Attorney Resolution No. 12-11-25-7.19 Page 3 of 3 EXHIBIT A RESOLUTION AUTHORIZING THE ISSUANCE OF $7,375,000 BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX ROAD BONDS, SERIES 2026 THE STATE OF TEXAS COUNTY OF BRAZOS WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in the District on November 5, 2019; and WHEREAS, the Board of Directors of the District hereby determines that bonds in the amount of $7,375,000 should be issued, as a portion and the third installment of the $104,060,000 bonds voted at such election, leaving the remaining $85,970,000 of such bonds, and any other bonds as may hereinafter be authorized by the District voters, to be issued at a later date; Now, Therefore BE IT RESOLVED BY THE BOARD OF DIRECTORS OF BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 THAT: 1. Definitions. Throughout this resolution the following terms and expressions as used herein shall have the meanings set forth below: "Accounting Principles" means the accounting principles described in the notes to the Audit as such principles may be changed from time to time to comply with State laws or regulations. "Act" means Chapters 49 and 54, Texas Water Code, as amended. "Annual Financial Information and Operating Data" means the financial information and operating data of the general type included in the final Official Statement authorized by this Resolution under the headings "FINANCIAL STATEMENT (UNAUDITED)," "TAX DATA," "DEBT SERVICE REQUIREMENTS," and in "APPENDIX A" (Independent Auditor's Report and Financial Statements). "Audit" means the audited financial statements of the District prepared by an independent auditor in accordance with the rules of the Texas Commission on Environmental Quality in effect at such time. "Blanket Issuer Letter of Representations" means the Blanket Issuer Letter of Representations between the District, the Registrar and DTC. "Board" means the Board of Directors of the District. 1 "Bond" or "Bonds" means one or more bonds of the issue of Brazos County Municipal Utility District No. 1 Unlimited Tax Road Bonds, Series 2026, authorized in this Resolution, unless the context clearly indicates otherwise. "Business Day" means any day which is not a Saturday, Sunday, or a day on which the Registrar is authorized by law or executive order to remain closed. "Closing Date" means on January , 2026. "Code" means the Internal Revenue Code of 1986, as amended, and, with respect to a specific section thereof, such reference shall be deemed to include (a) the Regulations promulgated under such section, (b) any successor provision of similar import hereafter enacted, (c) any corresponding provision of any subsequent Internal Revenue Code, and (d) the Regulations promulgated under the provisions described in (b) and (c). "District" means Brazos County Municipal Utility District No. 1. "DTC" means The Depository Trust Company of New York, New York, or any successor securities depository. "DTC Participant" means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. "EMMA" means the Electronic Municipal Market Access System established by the MSRB. Rule. "Financial Obligation" shall have the meaning of such word as used under the "Initial Bond" means the Initial Bond authorized by Section 4 of this Resolution. "Initial Purchaser" means the initial purchaser of the Bonds identified in Section 23 of this Resolution. "Interest Payment Date," when used in connection with any Bond, means March 1, 2026, and each September 1 and March 1 thereafter until maturity or prior redemption of such Bond. laws. "Material" shall have the meaning of such word as used under federal securities 2 "MSRB" means the Municipal Securities Rulemaking Board. "Obligated Person" shall have the meaning of such word as used under the Rule. "Paying Agent" means the Registrar. "Record Date" means, for any Interest Payment Date, the fifteenth calendar day of the month next preceding each Interest Payment Date. "Register" means the books of registration kept by the Registrar in which are maintained the names and addresses of, and the principal amounts of the Bonds registered to, each Registered Owner. "Registered Owner" means any person who shall be the registered owner of any outstanding Bond. "Registrar" means The Bank of New York Mellon Trust Company, N.A., Houston, Texas, and its successors in that capacity. "Regulations" means the applicable proposed, temporary or final Treasury Regulations promulgated under the Code or, to the extent applicable to the Code, under the Internal Revenue Code of 1954, as such regulations may be amended or supplemented from time to time. "Resolution" as used herein and in the Bonds means this Resolution authorizing the Bonds. "Road Capital Projects Fund" means the fund referred to in this Resolution. "Road Debt Service Fund" means the debt service fund confirmed in this Resolution. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. 2. Authorization. The Bonds shall be issued in fully registered form, without coupons, in the total aggregate amount of SEVEN MILLION THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($7,375,000) for the purpose or purposes of purchasing, constructing, acquiring, owning, maintaining, operating, repairing, improving, extending, or paying for inside and outside the district's boundaries, any and all macadamized, graveled or paved roads or facilities in aid thereof, including but not limited to, associated drainage and storm water detention facilities, landscaping and 3 irrigation, and all works, improvements, facilities, equipment, appliances, interests in property, all costs associated with flood plain and wetlands regulation (including mitigation) and endangered species and stormwater permits (including mitigation), and contract rights necessary or convenient therefor, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Section 52 of Article III, Constitution of Texas, the Act, and the Water Code. 3. Designation, Date, and Interest Payment Dates. The Bonds shall be designated as the "BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX ROAD BONDS, SERIES 2026," and shall be dated January 1, 2026. The Bonds shall bear interest at the rates set forth below from the later of January 1, 2026, or the most recent Interest Payment Date to which interest has been paid or duly provided for, calculated on the basis of a 360-day year of twelve 30-day months, interest payable on March 1, 2026, and semiannually thereafter on each September 1 and March 1 until maturity or prior redemption. 4. Initial Bond; Interest Rates; Maturities; Principal Amounts and Denominations. The Bonds shall be issued bearing the numbers, in the principal amounts, and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Resolution. The Bonds shall mature on September 1 in each of the years and in the amounts set out in such schedule. The Initial Bond shall be numbered IB-1 and all other Bonds shall be numbered in sequence beginning with R-1. Bonds delivered in transfer of or in exchange for other Bonds shall be numbered in order of their authentication by the Registrar, shall be in the denomination of $5,000 or integral multiples thereof, and shall mature on the same date and bear interest at the same rate as the Bond or Bonds in lieu of which they are delivered. Principal Amount Year Interest Rate $ 155,000 2027 % 160,000 2028 170,000 2029 180,000 2030 190,000 2031 200,000 2032 205,000 2033 220,000 2034 230,000 2035 240,000 2036 250,000 2037 265,000 2038 280,000 2039 290,000 2040 305,000 2041 4 320,000 2042 335,000 2043 355,000 2044 370,000 2045 390,000 2046 410,000 2047 430,000 2048 450,000 2049 475,000 2050 500,000 2051 5. Optional and Mandatory Redemption. Portions of the Bonds are subject to optional redemption on the dates and at the redemption prices set forth in the form of the Bonds in this Resolution. In addition, portions of the Bonds are subject to mandatory redemption on the dates and at the redemption prices set forth in the form of the Bonds in this Resolution. Principal amounts may be redeemed only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. If fewer than all of the Bonds are redeemed at any time, the particular maturities and amounts of Bonds to be redeemed shall be selected by the District. If fewer than all the Bonds of any maturity are redeemed at any time, the particular Bonds within a maturity to be redeemed shall be selected by the Registrar by lot or other customary method of selection. Upon surrender of any Bond for redemption in part, the Registrar, in accordance with this Resolution, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Registrar at least 30 days prior to the date fixed for redemption by sending written notice by first class mail to the Registered Owner of each Bond to be redeemed in whole or in part at the address shown on the Register. Such notices shall state the redemption date, the redemption price, the place at which Bonds are to be surrendered for payment and, if less than all Bonds outstanding within any one maturity are to be redeemed, the numbers of the Bonds or portions thereof to be redeemed. Any notice given as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Registered Owner receives such notice. By the date fixed for redemption, due provision shall be made with the Registrar for payment of the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest to the date fixed for redemption. When Bonds have been called for redemption in whole or in part and due provision has been made to redeem same as herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely 5 from the funds so provided for redemption, and the rights of the Registered Owners to collect interest which would otherwise accrue after the redemption date on any Bond or portion thereof called for redemption shall terminate on the date fixed for redemption. 6. Execution of Bonds; Seal. The Bonds shall be signed by the President or Vice President of the Board and countersigned by the Secretary or Assistant Secretary of the Board, by their manual, lithographed, or facsimile signatures, and the official seal of the District shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the District had been manually impressed upon each of the Bonds. If any officer of the District whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. On the Closing Date, the Initial Bond, being a single bond representing the entire principal amount of the Bonds, (the "Initial Bond"), payable in stated installments to the Initial Purchaser or is designee, executed by manual or facsimile signature of the President or Vice President and Secretary or Assistant Secretary of the Board, approved by the Attorney General, and registered and manually signed by the Comptroller of Public Accounts, shall be delivered to the Initial Purchaser or its designee. Upon payment for the Initial Bond, the Registrar shall cancel the Initial Bond and deliver Bonds to DTC in accordance with Section 13. 7. Approval by Attorney General; Registration by Comptroller. The Bonds to be initially issued shall be delivered to the Attorney General of Texas for approval and shall be registered by the Comptroller of Public Accounts of the State of Texas. The manually executed registration certificate of the Comptroller of Public Accounts substantially in the form provided in this Resolution shall be attached or affixed to the Bonds to be initially issued. 8. Authentication. Except for the Initial Bond, which need not be authenticated by the Registrar, in the event the Book -Entry -Only system is discontinued, only such Bonds which bear thereon a certificate of authentication, substantially in the form provided in this Resolution, manually executed by an authorized representative of the Registrar, shall be entitled to the benefits of this Resolution or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bonds so authenticated were delivered by the Registrar hereunder. 9. Payment of Principal and Interest. The Registrar is hereby appointed as the paying agent for the Bonds. The principal of and interest on the Bonds are payable, 6 without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America. Principal is payable upon presentation and surrender of the Bonds as they respectively become due and payable, whether at maturity or by prior redemption, at the principal payment office of the Registrar in Houston, Texas. Interest is payable by check or draft dated as of the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Registered Owner of record as of the Record Date, first class, postage prepaid, to the address of such Registered Owner as shown in the Register, or by such other customary banking arrangements as may be agreed upon by the Registrar and the Registered Owner, at the risk and expense of the Registered Owner. If the date for payment of the principal of or interest on any Bond is not a Business Day, then the date for such payment shall be the next succeeding Business Day with the same force and effect as if made on the date such payment was originally due. 10. Successor Registrars. The District covenants that at all times while any Bonds are outstanding it will provide a national or state banking institution, which shall be organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and which shall be subject to supervision or examination by federal or state authority, to act as Registrar for the Bonds. The District reserves the right to change the Registrar for the Bonds on not less than 30 days written notice to the Registrar, so long as any such notice is effective not less than 60 days prior to the next succeeding principal or Interest Payment Date on the Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Register or copies thereof to the new Registrar, and the new Registrar shall notify each Registered Owner, by United States mail, first class postage prepaid, of such change and of the address of the new Registrar. Each Registrar hereunder, by acting in that capacity, shall be deemed to have agreed to the provisions of this Section. 11. Special Record Date. If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for 30 days thereafter, the Registrar shall establish a new record date for the payment of such interest, to be known as a Special Record Date. The Registrar shall establish a Special Record Date when funds to make such interest payment are received from or on behalf of the District. Such Special Record Date shall be 15 days prior to the date fixed for payment of such past due interest, and notice of the date of payment and the Special Record Date shall be sent by United States mail, first class, postage prepaid, not later than five days prior to the Special Record Date, to each affected Registered Owner of record as of the close of business on the day prior to the mailing of such notice. 12. Ownership; Unclaimed Principal and Interest. The District, the Registrar and any other person may treat the person in whose name any Bond is registered as the 7 absolute Registered Owner of such Bond for the purpose of making and receiving payment of principal or interest on such Bond, and for all other purposes, whether or not such Bond is overdue, and neither the District nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Registered Owner of any Bond in accordance with this Section shall be valid and effectual and shall discharge the liability of the District and the Registrar upon such Bond to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Registered Owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law including, to the extent applicable, Title 6 of the Texas Property Code, as amended. 13. Book -Entry -Only System. (a) The Initial Bond shall be registered in the name of Cede & Co. Except as provided in this Section 13 hereof, all other Bonds shall be registered in the name of Cede & Co., as nominee of DTC. (b) With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the District and the Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such DTC Participant holds an interest in the Bonds, except as provided in this Resolution. Without limiting the immediately preceding sentence, the District and the Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a Registered Owner, as shown on the Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than a Registered Owner, as shown on the Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Resolution to the contrary, the District and the Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Register as the absolute owner of such Bond for the purpose of payment of principal of and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfer with respect to such Bond, and for all other purposes whatsoever. The Registrar shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the resolution of the respective Registered Owners, as shown in the Register as provided in this Resolution, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the District's obligations with respect to payments of principal, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Register, shall receive a Bond certificate evidencing the obligation of the District to make payments of amounts due pursuant to this Resolution. Upon delivery by DTC to 8 the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions of this Resolution with respect to interest checks being mailed to the Registered Owner of record as of the Record Date, the phrase "Cede & Co." in this Resolution shall refer to such new nominee of DTC. (c) The execution and delivery of the Blanket Issuer Letter of Representations is hereby approved with such changes as may be approved by the President or Vice President of the Board, and the President or Vice President of the Board is hereby authorized and directed to execute such Blanket Issuer Letter of Representations. 14. Successor Securities Depository; Transfer Outside Book -Entry -Only System. In the event that the District in its sole discretion, determines that the beneficial owners of the Bonds be able to obtain certificated Bonds, or in the event DTC discontinues the services described herein, the District shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants, as identified by DTC, of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants, as identified by DTC, of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC Participants having Bonds credited to their DTC accounts, as identified by DTC. In such event, the Bonds shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Registered Owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Resolution. 15. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as any Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bonds, and all notices with respect to such Bonds, shall be made and given, respectively, in the manner provided in the Blanket Issuer Letter of Representations. 16. Registration, Transfer, and Exchange. This section is subject to the provisions of Section 13, entitled "Book -Entry -Only System." So long as any Bonds remain outstanding, the Registrar shall keep the Register at its principal payment office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of this Resolution. Each Bond shall be transferable only upon the presentation and surrender thereof at the operations office of the Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the Registered Owner or his 9 authorized representative in form satisfactory to the Registrar. Upon due presentation of any Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three Business Days after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal payment office of the Registrar for a Bond or Bonds of like maturity and interest rate and in any authorized denomination, in an aggregate amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section. Each Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Resolution to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. The District or the Registrar may require the Registered Owner of any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the District. 17. Mutilated, Lost, or Stolen Bonds. Subject to the provisions of Section 13, entitled "Book -Entry -Only System," upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate, and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost, apparently destroyed, or wrongfully taken, the District, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The District or the Registrar may require the Registered Owner of a mutilated Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar. The District or the Registrar may require the Registered Owner of a lost, apparently destroyed or wrongfully taken Bond, before any replacement Bond is issued, to: (1) furnish to the District and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (2) furnish such security or indemnity as may be required by the Registrar and the District to hold them harmless; 10 (3) pay all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (4) meet any other reasonable requirements of the District and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the District and the Registrar shall be entitled to recover such replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the District or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the District in its discretion may, instead of issuing a replacement Bond, authorize the Registrar to pay such Bond. Each replacement Bond delivered in accordance with this Section shall be entitled to the benefits and security of this Resolution to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. 18. Cancellation of Bonds. Subject to the provisions in Section 13, entitled "Book -Entry -Only System," all Bonds paid in accordance with this Resolution, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be canceled and destroyed upon the making of proper records regarding such payment. Upon request, the Registrar shall furnish the District with appropriate certificates of destruction of such Bonds. 19. Forms. The form of the Bonds, including the form of the Registrar's Authentication Certificate, the form of Assignment, and the form of Registration Certificate of the Comptroller of Public Accounts of the State of Texas, which shall be attached or affixed to the Bonds initially issued, shall be, respectively, substantially as follows, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Resolution, including any legend regarding bond insurance if such insurance is obtained by the purchaser: 11 a. Form of Bond UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF BRAZOS REGISTERED NUMBER R- REGISTERED $ BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX ROAD BOND SERIES 2026 INTEREST RATE: MATURITY DATE: ISSUE DATE: January 1, 2026 REGISTERED OWNER: CUSIP NO.: PRINCIPAL AMOUNT: DOLLARS BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 (the "District") promises to pay to the Registered Owner identified above, or registered assigns, on the maturity date specified above, upon presentation and surrender of this Bond at the principal payment office of the registrar (the "Registrar"), initially, The Bank of New York Mellon Trust Company, N.A., Houston, Texas, the principal amount identified above, and to pay interest thereon at the rate shown above, calculated on the basis of a 360-day year of twelve 30-day months, from the later of January 1, 2026, or the most recent interest payment date to which interest has been paid or duly provided for. Principal of and interest on this Bond are payable in any coin or currency of the United States of America which on the date of payment is legal tender for the payment of debts due the United States of America. Interest on this Bond is payable by check or draft on each March 1 and September 1 until the earlier of maturity or prior redemption, beginning on March 1, 2026, mailed to the Registered Owner as shown on the books of registration kept by the Registrar as of the fifteenth day of the month next preceding each interest payment date (the "Record Date"), or by such other customary banking arrangements as may be agreed upon by the Registrar and the Registered Owner, at the risk and expense of the Registered Owner. The Bond is dated as of the Issue Date. 12 THIS BOND is one of a duly authorized issue of Bonds, aggregating $7,375,000 (the "Bonds"), issued for the purpose or purpose or purposes of purchasing, constructing, acquiring, owning, maintaining, operating, repairing, improving, extending, or paying for inside and outside the district's boundaries, any and all macadamized, graveled or paved roads or facilities in aid thereof, including but not limited to, associated drainage and storm water detention facilities, landscaping and irrigation, and all works, improvements, facilities, equipment, appliances, interests in property, all costs associated with flood plain and wetlands regulation (including mitigation) and endangered species and stormwater permits (including mitigation), and contract rights necessary or convenient therefor, under and in strict conformity with the Constitution and laws of the State of Texas, particularly Section 52 of Article III, Constitution of Texas, the Act, by authority of an election held for and within the District on November 5, 2019, and pursuant to a resolution adopted by the Board of Directors on December , 2025 (the "Resolution"). THIS BOND, and the other Bonds of the series of which it is a part, are payable from the proceeds of an annual ad valorem tax levied without legal limitation as to rate or amount upon all taxable property within the District. Reference is hereby made to the Resolution for a complete description of the terms, covenants and provisions pursuant to which this Bond and said series of Bonds are secured and made payable; the respective rights thereunder of the Registered Owners of the Bonds, the District and the Registrar; and the terms upon which the Bonds are, and are to be, registered and delivered. THE DISTRICT RESERVES THE RIGHT, at its option, to redeem the Bonds maturing on or after September 1, 2032, prior to their scheduled maturities, in whole or in part, in integral multiples of $5,000, on September 1, 2031, or any date thereafter at par plus accrued interest on the principal amounts called for redemption to the date fixed for redemption. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. If fewer than all the Bonds are redeemed at any time, the particular maturities and amounts of Bonds to be redeemed shall be selected by the District. If fewer than all the Bonds of any maturity are redeemed at any time, the particular Bonds within a maturity to be redeemed shall be selected by the Registrar by lot or other customary method of election (or by DTC in accordance with its procedures while the Bonds are in book -entry -only form). In selecting portions of Bonds for redemption, the Registrar shall treat each Bond as representing that number of Bonds of $5,000 denomination which is obtained by dividing the principal amount of such Bond by $5,000. Upon surrender of any Bond for redemption in part, the Registrar, in accordance with the provisions of the Resolution, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. Reference is made to the Resolution for complete details concerning the manner of redeeming the Bonds. 13 IN ADDITION TO BEING SUBJECT TO OPTIONAL REDEMPTION, THE BONDS ISSUED AS TERM BONDS maturing on September 1, in each of the years and (collectively, the "Term Bonds") are subject to mandatory redemption prior to maturity in the following amounts (subject to reduction as hereinafter provided), on the following dates ("Mandatory Redemption Dates"), at a price equal to the principal amount redeemed plus accrued interest to each Mandatory Redemption Date, subject to the conditions set forth below: TERM BOND 20 Mandatory Redemption Principal Amount September 1, 20 $ September 1, 20 (maturity) $ TERM BOND 20 Mandatory Redemption Principal Amount September 1, 20 $ September 1, 20 (maturity) $ ON OR BEFORE 30 days prior to each Mandatory Redemption Date set forth above, the Registrar shall (i) determine the principal amount of such Term Bond that must be mandatorily redeemed on such Mandatory Redemption Date, after taking into account deliveries for cancellation and optional redemptions as more fully provided for below, (ii) select, by lot or other customary random method, the Term Bond or portions of the Term Bond of such maturity to be mandatorily redeemed on such Mandatory Redemption Date, and (iii) give notice of such redemption as provided in the Bond Resolution. The principal amount of any Term Bond to be mandatorily redeemed on such Mandatory Redemption Date shall be reduced by the principal amount of such Term Bond which, by the 45th day prior to such Mandatory Redemption Date, either has been purchased in the open market and delivered or tendered for cancellation by or on behalf of the District to the Registrar or optionally redeemed and which, in either case, has not previously been made the basis for a reduction under this sentence. NOTICE OF ANY REDEMPTION shall be given at least 30 days prior to the date fixed for redemption by first class mail, addressed to the Registered Owner of each Bond to be redeemed in whole or in part at the address shown on the books of registration kept by the Registrar. When Bonds or portions thereof have been called for redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemption. 14 THIS BOND IS TRANSFERABLE only upon presentation and surrender at the operations office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the Registered Owner or his authorized representative, subject to the terms and conditions of the Resolution. THIS BOND IS EXCHANGEABLE at the operations office of the Registrar for bonds in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of the Resolution. NEITHER THE DISTRICT nor the Registrar shall be required to transfer or exchange any Bond during the period beginning on a Record Date and ending on the next succeeding interest payment date or to transfer or exchange any Bond called for redemption during the 30-day period prior to the date fixed for redemption of such Bond. THIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Resolution unless this Bond is either (i) registered by the Comptroller of Public Accounts of the State of Texas by registration certificate attached or affixed hereto or (ii) authenticated by the Registrar by due execution of the authentication certificate endorsed hereon. THE REGISTERED OWNER of this Bond, by acceptance hereof, acknowledges and agrees to be bound by all the terms and conditions of the Resolution. THE DISTRICT has covenanted in the Resolution that it will at all times provide a legally qualified registrar for the Bonds and will cause notice of any change of registrar to be mailed first class, postage prepaid, to each Registered Owner. IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, to exist and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been done in accordance with law; and that annual ad valorem taxes, without legal limit as to rate or amount, sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the District and have been pledged irrevocably for such payment. 15 IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of the President or Vice President of the Board of Directors and countersigned with the manual or facsimile signature of the Secretary or Assistant Secretary of the Board of Directors, and the official seal of the District has been duly impressed, or placed in facsimile, on this Bond. (SEAL) BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 President, Board of Directors Secretary, Board of Directors b. Form of Registration Certificate of Comptroller of Public Accounts COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL this (SEAL) Comptroller of Public Accounts of the State of Texas 16 c. Form of Registrar's Authentication Certificate AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been delivered pursuant to the Resolution described in the text of this Bond, in exchange for or in replacement of a bond, bonds or a portion of a bond or bonds of a series which was originally approved by the Attorney General of Texas and registered by the Comptroller of Public Accounts of the State of Texas. The Bank of New York Mellon Trust Company, N.A. By: d. Form of Assignment Authorized Signature Date of Authentication: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (Please print or type name, address, and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer said Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature Guaranteed: Registered Owner 17 NOTICE: Signature(s) must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program ("STAMP") or similar program. NOTICE: The signature above must correspond to the name of the Registered Owner as shown on the face of this Bond in every particular, without any alteration, enlargement or change whatsoever. e. The Initial Bond shall be in the form set forth in paragraphs a, b, and d of this Section, except for the following alterations: i. immediately under the name of the Bond, the headings "INTEREST RATE" and "MATURITY DATE" shall both be completed with the words "As Shown Below" and the word "CUSIP No." deleted; ii. in the first paragraph of the Bond, the words "on the maturity date specified above," "the principal amount identified above," and "at the rate shown above" shall be deleted and the following shall be inserted at the end of the first sentence " ..., with such principal to be paid in installments on September 1 in each of the years and in the principal amounts identified in the following schedule and with such installments bearing interest at the per annum rates set forth in the following schedule:" [Information to be inserted from schedule in Section 4] iii. the Initial Bond shall be numbered IB-1. 20. Legal Opinion; CUSIP; Bond Insurance. The approving opinion of Allen Boone Humphries Robinson LLP, Houston, Texas, and CUSIP numbers may be printed on the Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Bonds. If bond insurance is obtained by the purchaser, the Bonds may bear an appropriate legend as provided by the insurer. 21. Road Debt Service Fund; Tax Levy. The Road Debt Service Fund is hereby confirmed and the proceeds from all taxes levied, assessed and collected for and on account of the Bonds authorized by this Resolution shall be deposited, as collected, in such Fund. While the Bonds or any part of the principal thereof or interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually levied, assessed and collected in due time, form and manner, and at the same time other District taxes are levied, assessed and collected, in each year, beginning in the current year, a continuing direct annual ad valorem tax, without legal limit as to rate, upon all taxable property in the District, sufficient to pay the interest on the Bonds as the same becomes due and to pay each installment of the principal of the Bonds as the same matures, full allowance being made for delinquencies and costs of collection, and said taxes are hereby irrevocably pledged to the payment of the interest on and principal of the Bonds and to no other purpose. 18 There is hereby appropriated from the proceeds of sale of the Bonds twelve (12) months' interest on the Bonds, which amount shall be deposited into the Road Debt Service Fund and used to pay interest on the Bonds, and such amount shall be used for no other purpose. 22. Further Proceedings. After the Bonds to be initially issued have been executed, it shall be the duty of the President or Vice President and Secretary or Assistant Secretary of the Board and other appropriate officials and agents of the District to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General of Texas, for examination and approval. After the Bonds to be initially issued have been approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Bonds to be initially issued, the Comptroller of Public Accounts (or the Comptroller's bond clerk or an assistant bond clerk lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein and the seal of said Comptroller shall be impressed, or placed in facsimile, thereon. 23. Sale; Proceeds. The sale and delivery of the Bonds to (herein referred to as the "Initial Purchaser") at a price of $ , plus accrued interest thereon to date of delivery, is hereby authorized, approved, ratified and confirmed, subject to the approving opinion as to the legality of the Bonds of the Attorney General of Texas, and of Allen Boone Humphries Robinson LLP, Houston, Texas, bond counsel. It is hereby found and declared that the Initial Purchaser's bid produced the lowest net effective interest rate for the Bonds after advertisement and public sale, and that the net effective interest rate resulting from such bid is % which rate is less than the maximum rate permitted by law, and is determined to be in the District's best interest, per Section 1201.022(a) (3) (B) of the Government Code. Accrued interest and capitalized interest on the Bonds shall be deposited into the Road Debt Service Fund upon receipt. The remaining proceeds of sale of the Bonds shall be deposited into the Road Capital Projects Fund, which fund is hereby confirmed, and, together with investment earnings of such proceeds, shall be used for the purposes set forth in Section 2 of this Resolution and to pay costs of issuance. After all the roads and facilities described in Section 2 of this Resolution are constructed, any remainder shall be transferred to the Road Debt Service Fund, in accordance with the applicable laws and regulations in effect at such time. 24. Investments. Moneys deposited into the Road Debt Service or Road Capital Projects Funds and any other fund or funds that the District may lawfully create may be invested or reinvested in authorized investments. All investments and any profits realized from or interest accruing on such investments shall belong to the fund 19 from which the moneys for such investments were taken; provided, however, that in the discretion of the Board of Directors the profits realized from and interest accruing on investments made from any fund may be transferred to the Road Debt Service Fund. 25. Defeasance and Refunding. The District reserves the right to defease or refund the Bonds in any manner provided by law. 26. Remedies in Event of Default. In addition to all of the rights and remedies provided by laws of the State of Texas, the District further covenants and agrees that in the event of default in payment of principal or interest on any of the Bonds when due, or, in the event it fails to make the payments required to be made into the Road Debt Service Fund or any other fund or defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this Resolution, the Registered Owners shall be entitled to a writ of mandamus issued by a court of competent jurisdiction compelling and requiring the District and the officials thereof to observe and perform the covenants, obligations or conditions prescribed in this Resolution. Any delay or omission to exercise any right or power occurring upon any default shall not impair any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. 27. Federal Income Tax Matters. (a) General. The District covenants not to take any action, or omit to take any action within its control, that, if taken or omitted, would cause the interest on the Bonds to be includable in gross income for federal income tax purposes. In furtherance thereof, the District covenants to comply with sections 103 and 141 through 150 of the Code, and the provisions set forth in the Federal Tax Certificate executed by the District in connection with the Bonds. (b) No Private Activity Bonds. The District covenants that it will use the proceeds of the Bonds (including investment income) and the property financed, directly or indirectly, with such proceeds so that the Bonds will not be "private activity bonds" within the meaning of section 141 of the Code. Furthermore, the District will not take a deliberate action (as defined in section 1.141-2(d)(3) of the Regulations) that causes any Bond to be a "private activity bond" unless it takes a remedial action permitted by section 1.141-12 of the Regulations. (c) No Federal Guarantee. The District covenants not to take any action, or omit to take any action within its control, that, if taken or omitted, would cause the Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Code, except as permitted by section 149(b)(3) of the Code. 20 (d) No Hedge Bonds. The District covenants not to take any action, or omit to take any action within its control, that, if taken or omitted, would cause the Bonds to be "hedge bonds" within the meaning of section 149(g) of the Code. (e) No Arbitrage Bonds. The District covenants that it will make such use of the proceeds of the Bonds (including investment income) and regulate the investment of such proceeds of the Bonds so that the Bonds will not be "arbitrage bonds" within the meaning of section 148(a) of the Code. (f) Required Rebate. The District covenants that, if the District does not qualify for an exception to the requirements of section 148(f) of the Code, the District will comply with the requirement that certain amounts earned by the District on the investment of the gross proceeds of the Bonds be rebated to the United States. (g) Information Reporting. The District covenants to file or cause to be filed with the Secretary of the Treasury an information statement concerning the Bonds in accordance with section 149(e) of the Code. (h) Record Retention. The District covenants to retain all material records relating to the expenditure of the proceeds (including investment income) of the Bonds and the use of the property financed, directly or indirectly, thereby until three years after the last Bond is redeemed or paid at maturity (or such other period as provided by subsequent guidance issued by the Department of the Treasury) in a manner that ensures their complete access throughout such retention period. (i) Registration. The Bonds will be issued in registered form. (j) Favorable Opinion of Bond Counsel. Notwithstanding the foregoing, the District will not be required to comply with any of the federal tax covenants set forth above if the District has received an opinion of nationally recognized bond counsel that such noncompliance will not adversely affect the excludability of interest on the Bonds from gross income for federal income tax purposes. (k) Continuing Compliance. Notwithstanding any other provision of this Resolution, the District's obligations under the federal tax covenants set forth above will survive the defeasance and discharge of the Bonds for as long as such matters are relevant to the excludability of interest on the Bonds from gross income for federal income tax purposes. (1) Official Intent. For purposes of section 1.150-2(d) of the Regulations, to the extent that an official intent to reimburse by the District has not been adopted for a particular project, this Resolution serves as the District's official declaration of intent to use proceeds of the Bonds issued in the maximum amount authorized by this Resolution to reimburse itself for certain expenditures paid in connection with the 21 projects set forth herein. Any such reimbursement will only be made (i) for an original expenditure paid no earlier than 60 days prior to the date hereof and (ii) not later than 18 months after the later of (A) the date the original expenditure is paid or (B) the date on which the project to which such expenditure relates is placed in service or abandoned, but in no event more than three years after the original expenditure is paid. 28. Qualified Tax -Exempt Obligations. The Bonds are not "qualified tax- exempt obligations" for purposes of section 265(b) of the Code. 29. Official Statement. The District ratifies and confirms its prior approval of the form and content of the Preliminary Official Statement prepared in the initial offering of the Bonds and hereby authorizes and approves the amendment of the Preliminary Official Statement to add the terms of the Initial Purchaser's bid and to make any other changes necessary to comply with the provisions of this Resolution and existing law. The use of such final Official Statement in the reoffering of the Bonds by the Initial Purchaser is hereby approved and authorized. The proper officials of the District are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Bonds. 30. Continuing Disclosure Undertaking. (a) Annual Reports. The District shall provide annually to the MSRB's EMMA system, within six months after the end of each fiscal year of the District ending in or after 2025, Annual Financial Information and Operating Data with respect to the District. Any financial statements so provided shall be (1) prepared in accordance with the Accounting Principles described in this Resolution and (2) audited, if the District commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the District shall provide unaudited financial statements for the applicable fiscal year to EMMA within such six month period, and audited financial statements, if and when the audit report on such statements becomes available. If the District changes its fiscal year, the District will notify EMMA of the change (and of the date of the new fiscal year end) prior to the next date by which the District otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public on the MSRB's internet website or filed with the SEC. 22 All documents provided to EMMA by the District pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. The District shall notify EMMA, in a timely manner, of any failure by the District to provide financial information or operating data in accordance with this subsection (a) by the time required by this subsection (a). (b) Event Notices. The District shall notify EMMA, in a timely manner, not in excess of ten business days after the occurrence of the event, of any of the following events with respect to the Bonds: A. Principal and interest payment delinquencies; B. Non-payment related defaults, if Material; C. Unscheduled draws on debt service reserves reflecting financial difficulties; D. Unscheduled draws on credit enhancements reflecting financial difficulties; E. Substitution of credit or liquidity providers, or their failure to perform; F. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other Material notices or determinations with respect to the tax status of the Bonds, or other Material events affecting the tax status of the Bonds; G. Modifications to rights of holders of the Bonds, if Material; H. Bond calls, if Material, and tender offers; I. Defeasances; J. Release, substitution, or sale of property securing repayment of the Bonds, if Material; K. Rating changes; L. Bankruptcy, insolvency, receivership or similar event of the District or other Obligated Person; M. Consummation of a merger, consolidation, or acquisition involving the District or other Obligated Person or the sale of all or substantially all of the assets of the District or other Obligated Person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if Material; N. Appointment of a successor or additional trustee or the change of name of a trustee, if Material; O. Incurrence of a Financial Obligation of the District or other Obligated Person, if Material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the District or other Obligated Person, any of which affect beneficial owners of the Bonds, if Material; and 23 P. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the District or other Obligated Person, any of which reflect financial difficulties. (c) Limitations, Disclaimers, and Amendments. The District shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the District remains an "Obligated Person" with respect to the Bonds, except that the District in any event will give the notice required by subsection (b) of this Section of any Bond calls and defeasance that cause the District to be no longer such an Obligated Person. The provisions of this Section are for the sole benefit of the Registered Owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The District undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the District's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The District does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE DISTRICT BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE DISTRICT, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the District in observing or performing its obligations under this Section shall constitute a breach of or default under this Resolution for purposes of any other provision of this Resolution. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the District under federal and state securities laws. The provisions of this Section may be amended by the District from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the District, but only if the provisions of this Section, as so amended, would have permitted 24 an underwriter to purchase or sell Bonds in the original primary offering of the Bonds in compliance with the Rule, taking into account any amendments and interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and either the Registered Owners of a majority in aggregate principal amount (or any greater amount required by any other provision of this Resolution that authorizes such an amendment) of the outstanding Bonds consent to such amendment or a Person that is unaffiliated with the District (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Registered Owners and beneficial owners of the Bonds. If the District so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (a) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. The District may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but in either case only if and to the extent that its right to do so would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. 31. Related Matters. To satisfy in a timely manner all of the District's obligations under this Resolution, the President or Vice President and Secretary or Assistant Secretary of the Board of Directors of the District and all other appropriate officers and agents of the District are hereby authorized and directed to do any and all things necessary and/ or convenient to carry out the terms and purposes of this Resolution. 32. Registrar. The form of agreement setting forth the duties of the Registrar is hereby approved, and the appropriate officials of the District are hereby authorized to execute such agreement for and on behalf of the District. 33. No Personal Liability. No recourse shall be had for payment of the principal of or interest on any Bonds or for any claim based thereon, or on this Resolution, against any official or employee of the District or any person executing any Bonds. 34. District's Successors and Assigns. Whenever in this Resolution the District is named and referred to it shall be deemed to include its successors and assigns, and all covenants and agreements in this Resolution by or on behalf of the District, except as otherwise provided herein, shall bind and inure to the benefit of its successors and assigns whether or not so expressed. 35. Benefits of Resolution Provisions. Nothing in this Resolution or in the Bonds, expressed or implied, shall give or be construed to give any person, firm or corporation, other than the District, the Registrar and the Registered Owners, any legal 25 or equitable right or claim under or in respect of this Resolution, or under any covenant, condition or provision herein contained, all the covenants, conditions and provisions contained in this Resolution or in the Bonds being for the sole benefit of the District, the Registrar and the Registered Owners. 36. Severability Clause. If any word, phrase, clause, sentence, paragraph, section or other part of this Resolution, or the application thereof to any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this Resolution and the application of such word, phrase, clause, sentence, paragraph, section or other part of this Resolution to any other persons or circumstances shall not be affected thereby. 37. Open Meeting. It is hereby officially found and determined that the meeting at which this Resolution was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code and Section 49.063, Texas Water Code. 38. Texas Attorney General Approval. It is hereby determined that the President, Vice President, Secretary or Assistant Secretary of the Board and all other appropriate officers and agents of the District are hereby authorized to initiate an action under Chapter 1205, Texas Government Code, as amended, to obtain a declaratory judgment as deemed necessary and appropriate in connection with the issuance of the Bonds. The Board shall be authorized to engage on behalf of the District, and on terms and conditions deemed reasonable and appropriate, such legal counsel and other consultants in connection with such action. The Board and Bond Counsel for the District are directed to provide such assistance as may be reasonably required in connection with such action. [EXECUTION PAGE FOLLOWS] 26 PASSED AND APPROVED on this llth day of December, 2025. President, Board of Directors ATTEST: Secretary, Board of Directors (SEAL) CERTIFICATE FOR RESOLUTION THE STATE OF TEXAS COUNTY OF BRAZOS I, the undersigned officer of the Board of Directors of Brazos County Municipal Utility District No. 1, hereby certify as follows: 1. The Board of Directors of Brazos County Municipal Utility District No. 1 convened in regular session on December 11th, 2025, and the roll was called of the members of the Board: Robert "Hunter" Goodwin President Charles Moreau Vice President Lawrence B. Hodges, Jr. Secretary Kyle Davis Assistant Secretary Brian G. Fisher Assistant Vice President and all of said persons were present except Director(s) , thus constituting a quorum. Whereupon, among other business, the following was transacted at the meeting: a written RESOLUTION AUTHORIZING THE ISSUANCE OF $7,375,000 BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX ROAD BONDS, SERIES 2026 was introduced for the consideration of the Board. It was then duly moved and seconded that the Resolution be adopted; and, after due discussion, the motion, carrying with it the adoption of the Resolution, prevailed and carried unanimously. 2. A true, full, and correct copy of the aforesaid resolution adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; the action approving the resolution has been duly recorded in the Board's minutes of the meeting; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of the aforesaid meeting, and that the resolution would be introduced and considered for adoption at the meeting, and each of the officers and members consented, in advance, to the holding of the meeting for such purpose; the meeting was open to the public as required by law; and public notice of the time, place, and subject of the meeting was given as required by Chapter 551, Texas Government Code, and Section 49.063 and Texas Water Code. SIGNED AND SEALED on this 11th day of December, 2025. Secretary, Board of Directors (SEAL) PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 7, 2025 This Preliminary Official Statement is subject to completion and amendment and is intended solely for the purpose of soliciting initial bids on the Bonds. Upon the sale of the Bonds, the Official Statement will be completed and delivered to the Initial Purchaser. IN THE OPINION OF BOND COUNSEL, UNDER EXISTING LAW, INTEREST ON THE BONDS (i) IS EXCLUDABLE FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES UNDER SECTION 103 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND (ii) IS NOT AN ITEM OF TAX PREFERENCE FOR PURPOSES OF THE ALTERNATIVE MINIMUM TAX ON INDIVIDUALS. SEE "TAX MATTERS" HEREIN, INCLUDING INFORMATION REGARDING POTENTIAL ALTERNATIVE MINIMUM TAX CONSEQUENCES FOR CORPORATIONS. THE BONDS WILL NOT BE DESIGNATED AS "QUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS. NEW ISSUE - Book-Entrv-Onlv Underlying Rating: Moody's: See "MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE" herein. $7,375,000 BRAZOS COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 (A political subdivision of the State of Texas located within Brazos County) UNLIMITED TAX ROAD BONDS, SERIES 2026 Dated: January 1, 2026 Due: September 1 as shown below Principal of the bonds described above (the "Bonds") will be payable at stated maturity or redemption upon presentation of the Bonds at the principal payment office of the paying agent/registrar, initially The Bank of New York Mellon Trust Company, N.A. (the "Paying Agent/Registrar", "Paying Agent" or "Registrar") in Houston, Texas. Interest on the Bonds will accrue from January 1, 2026 and be payable on March 1, 2026, and on each September 1 and March 1 thereafter until the earlier of maturity or redemption. The Bonds will be issued only in fully registered form. Interest will be calculated on the basis of a 360-day year of twelve 30-day months. The Bonds are subject to redemption prior to maturity as shown below. The Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Bonds. Beneficial owners of the Bonds will not receive physical certificates representing the Bonds, but will receive a credit balance on the books of the nominees of such beneficial owners. So long as Cede & Co. is the registered owner of the Bonds, the principal of and interest on the Bonds will be paid by the Paying Agent directly to DTC, which will, in turn, remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds as described herein. See "BOOK -ENTRY -ONLY SYSTEM." MATURITIES. PRINCIPAL AMOUNTS. INTEREST RATES. INITIAL REOFFERING YIELDS. AND CUSIPS Initial CUSIP Initial CUSIP Due Principal Interest Reoffering Number Due Principal Interest Reoffering Number September 1 Amount (a) Rate Yield (b) 106206 (c) September 1 Amount Rate Yield (a) 106206 (b) 2027 $ 155,000 2040 $ 290,000 (d) 2028 160,000 2041 305,000 (d) 2029 170,000 2042 320,000 (d) 2030 180,000 2043 335,000 (d) 2031 190,000 2044 355,000 (d) 2032 200,000 (d) 2045 370,000 (d) 2033 205,000 (d) 2046 390,000 (d) 2034 220,000 (d) 2047 410,000 (d) 2035 230,000 (d) 2048 430,000 (d) 2036 240,000 (d) 2049 450,000 (d) 2037 250,000 (d) 2050 475,000 (d) 2038 265,000 (d) 2051 500,000 (d) 2039 280,000 (d) (a) The Initial Purchaser (as defined herein) may elect to designate one or more term bonds. See accompanying Official Notice of Sale and Official Bid Form. (b) Initial reoffering yield represents the initial offering yield to the public which has been established by the Initial Purchaser for offers to the public and which may be subsequently changed by the Initial Purchaser and is the sole responsibility of the Initial Purchaser. The initial reoffering yields indicated above represent the lower of the yields resulting when priced at maturity or to the first call date. Accrued interest from January 1, 2026, is to be added to the price. (c) CUSIP numbers have been assigned to the Bonds by CUSIP Global Services and are included solely for the convenience of the purchasers of the Bonds. Neither the District nor the Initial Purchaser shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. (d) Bonds maturing on and after September 1, 2032, are subject to redemption prior to maturity at the option of the District, in whole or from time to time in part, on September 1, 2031, or on any date thereafter, at a price equal to the principal amount thereof plus accrued interest to the date fixed for redemption. See "THE BONDS -Redemption Provisions." The Bonds, when issued, will constitute valid and legally binding obligations of Brazos County Municipal Utility District No. 1 (the "District") and will be payable from the proceeds of an annual ad valorem tax, without legal limitation as to rate or amount, levied against all taxable property located within the District. The Bonds are obligations solely of the District and are not obligations of the State of Texas, Brazos County, the City of College Station or any entity other than the District. The Bonds are subject to special investment risks described herein. See "RISK FACTORS." The Bonds are offered by the Initial Purchaser subject to prior sale, when, as and if issued by the District and accepted by the Initial Purchaser, subject, among other things, to the approval of the Bonds by the Attorney General of Texas and the approval of certain legal matters by Allen Boone Humphries Robinson LLP, Bond Counsel. Delivery of the Bonds in book -entry form through the facilities of DTC is expected on or about January 15, 2026. Bids Due: Tuesday, December _ 2025, at 10:00 a.m., Houston Time in Houston, Texas Bid Award: Tuesday, December _, 2025, at 12:00 p.m., Houston Time in Bryan, Texas TABLE OF CONTENTS USE OF INFORMATION IN OFFICIAL STATEMENT 3 OFFICIAL STATEMENT SUMMARY 4 SELECTED FINANCIAL INFORMATION 7 RISK FACTORS 8 THE BONDS 14 BOOK -ENTRY -ONLY SYSTEM 20 THE DISTRICT 21 MANAGEMENT 23 UTILITY AGREEMENT 24 THE DEVELOPERS AND MAJOR LANDOWNER 25 THE ROAD SYSTEM 25 THE SYSTEM 26 USE AND DISTRIBUTION OF BOND PROCEEDS 27 UNLIMITED TAX BONDS AUTHORIZED BUT UNISSUED 28 FINANCIAL STATEMENT (UNAUDITED) 28 ESTIMATED OVERLAPPING DEBT STATEMENT 29 TAX DATA 30 TAX PROCEDURES 33 GENERAL FUND 38 DEBT SERVICE REQUIREMENTS 39 LEGAL MATTERS 40 TAX MATTERS 41 SALE AND DISTRIBUTION OF THE BONDS 43 MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE 44 PREPARATION OF OFFICIAL STATEMENT 44 CONTINUING DISCLOSURE OF INFORMATION 46 MISCELLANEOUS 48 AERIAL PHOTOGRAPH PHOTOGRAPHS INDEPENDENT AUDITOR'S REPORT AND FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED NOVEMBER 30, 2024 APPENDIX A 2 USE OF INFORMATION IN OFFICIAL STATEMENT For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended and in effect on the date hereof, this document constitutes an Official Statement with respect to the Bonds that has been "deemed final" by the District as of its date except for the omission of no more than the information permitted by Rule 15c2-12. No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been authorized by the District. This Official Statement is not to be used in an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. All of the summaries of the statutes, resolutions, orders, contracts, audited financial statements, engineering and other related reports set forth in this Official Statement are made subject to all of the provisions of such documents. These summaries do not purport to be complete statements of such provisions, and reference is made to such documents, copies of which are available from Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2600, Houston, Texas, 77027, upon payment of duplication costs. References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader's convenience. Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is defined in, SEC Rule 15c2-12, as amended. This Official Statement contains, in part, estimates, assumptions and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such estimates, assumptions or matters of opinion, or as to the likelihood that they will be realized. Any information and expressions of opinion herein contained are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District or other matters described herein since the date hereof. However, the District has agreed to keep this Official Statement current by amendment or sticker to reflect material changes in the affairs of the District and, to the extent that information actually comes to its attention, the other matters described in this Official Statement until delivery of the Bonds to the Initial Purchaser and thereafter only as specified in "PREPARATION OF OFFICIAL STATEMENT — Updating the Official Statement." 3 OFFICIAL STATEMENT SUMMARY The following information is qualified in its entirety by the detailed information appearing elsewhere in this Official Statement. THE FINANCING The Issuer Brazos County Municipal Utility District No. 1 (the "District"), a political subdivision of the State of Texas, is located in Brazos County, Texas and within the extraterritorial jurisdiction of the City of College Station (the "City"). See "THE DISTRICT." The Issue $7,375,000 Unlimited Tax Road Bonds, Series 2026 (the "Bonds") are issued pursuant to a resolution (the "Bond Resolution") of the District's Board of Directors and a City consent resolution. The Bonds will be issued as fully registered bonds maturing in the years and in the amounts shown on the cover hereof. Interest on the Bonds accrues from January 1, 2026, and is payable on March 1, 2026, and on each September 1 and March 1 thereafter until the earlier of maturity or prior redemption. Redemption The Bonds maturing on and after September 1, 2032, are subject to redemption, in whole or from time to time in part, at the option of the District, prior to their maturity dates, on September 1, 2031, or on any date thereafter. Upon redemption, the Bonds will be payable at a price of par plus accrued interest to the date of redemption. See "THE BONDS — Redemption Provisions." Book -Entry -Only System... The Depository Trust Company, New York, New York ("DTC") will act as securities depository for the Bonds. The Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee), or such other name as may be requested by an authorized representative of DTC. One fully registered certificate will be issued for each maturity of the Bonds and will be deposited with DTC. See `BOOK - ENTRY -ONLY SYSTEM." Authority for Issuance The Bonds are the third series of bonds issued out of an aggregate of $104,060,000 principal amount of unlimited tax bonds authorized by the District's voters for roads and refunding outstanding road bonds. The Bonds are issued pursuant to the Bond Resolution; an election held within the District; the general laws of the State of Texas relating to the issuance of bonds by political subdivisions, including Article III, Section 52 of the Texas Constitution; Chapters 49 and 54 of the Texas Water Code, as amended; and approval by the City. See "THE BONDS —Authority for Issuance." Source of Payment The Bonds are payable from an annual ad valorem tax, without legal limitation as to rate or amount, levied upon all taxable property within the District. See "TAX PROCEDURES." The Bonds are obligations of the District and are not obligations of the State of Texas, Brazos County, the City of College Station or any other political subdivision or entity other than the District. See "THE BONDS —Source of and Security for Payment." Use of Proceeds Proceeds from the sale of the Bonds will be used to pay for items shown herein under "USE AND DISTRIBUTION OF BOND PROCEEDS," including to pay engineering and construction costs, to pay land acquisition costs, to capitalize twelve (12) months of interest on the Bonds, to pay interest on funds advanced by the Developers (as defined herein) on behalf of the District, and to pay certain other costs and engineering fees related to the issuance of the Bonds. See "USE AND DISTRIBUTION OF BOND PROCEEDS." 4 Payment Record The District has previously issued two series of unlimited tax road bonds of which $10,325,000 principal amount remain outstanding as of November 1, 2025, and three series of unlimited tax bonds of which $19,820,000 principal amount remain outstanding as of November 1, 2025 (the "Outstanding Bonds"). The District has never defaulted in the payment of principal and interest on the Outstanding Bonds. Not Qualified Tax -Exempt Obligations The District will not designate the Bonds as "qualified tax-exempt obligations" for financial institutions. Municipal Bond Rating and Municipal Bond Insurance... ... ...... Moody's Investors Service ("Moody's") has assigned an underlying rating of to the Bonds. An explanation of the ratings may be obtained from Moody's, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007. The fee associated with the rating assigned to the District by Moody's will be paid by the District; however, the fee associated with ratings provided by other agencies will be at the expense of the Initial Purchaser. Application has also been made to municipal bond insurance companies for the qualification of the Bonds for municipal bond insurance. If qualified, such insurance will be available at the option of the Initial Purchaser and at the Initial Purchaser's expense. See "RISK FACTORS —Risk Factors Related to the Purchase of Municipal Bond Insurance" and "MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE." Legal Opinion Allen Boone Humphries Robinson L.L.P., Bond Counsel, Houston, Texas. Disclosure Counsel McCall, Parkhurst & Horton L.L.P., Houston, Texas. Financial Advisor Post Oak Municipal Advisors LLC, Houston, Texas. Engineer Pape -Dawson Engineers, Inc., Houston, Texas. THE DISTRICT Description The District was created by order of the TCEQ dated January 14, 2015. The District contains approximately 553 acres of land and is located in Brazos County on the east side of Texas State Highway 6 and the north side of Peach Creek Cut Off Road. The District is approximately 8 miles south of downtown College Station. The District abuts the corporate limits of and lies entirely within the extraterritorial jurisdiction of the City of College Station and within the boundaries of the College Station Independent School District. See "THE DISTRICT" and "AERIAL PHOTOGRAPH." Status of Development Development in the District began in 2017. With the consent of the District, the Developers (as defined herein) have financed the design and construction of underground utility and road facilities to serve approximately 238.64 acres developed as 1,067 single-family residential lots. The District is being developed as a single-family residential development known as Southern Pointe Community Amenities constructed in the District include walking trails and ponds on approximately 60.07 acres. As of November 1, 2025 the District contained 752 single-family homes completed and occupied, 66 vacant single-family homes (including 6 model homes), 50 single-family homes under construction, and 199 completed lots available for home construction. Homebuilding in the District is being conducted by Stylecraft Builders, Omega Builders, Kaleo Homes, Continental Homes (a subsidiary of D.R. Horton), Ranger Home Builders, 5 Lennar Homes and Brightland Homes (formerly Gehan Homes). New homes in the District range in price from approximately $301,000 to $420,000. The Developers are currently developing approximately 16.28 acres (81 single-family residential lots) with expected completion of November 2025, approximately 11.25 acres (59 single-family residential lots) with expected completion of January 2026 and approximately 70.82 acres (358 single-family residential lots) with expected completion by the second quarter of 2026. Construction of underground utilities is also underway for approximately 55.33 acres in the District, which will be developed for commercial and multi -family development. Of this area a regional real estate office has been constructed on approximately 1.96 acres, and a convenience store and gas station have been constructed on approximately 2.99 acres. The remainder of the District consists of approximately 100.47 acres of developable but undeveloped land. See "THE DISTRICT —Land Use" and "—Status of Development." The Developers and Major Landowner BV Southern Pointe Development Inc., a Texas corporation ("BVSoPo"), was formed for the purpose of developing single-family residential land in the District. BVSoPo has developed approximately 234.02 acres within the District and continues to own approximately 181.91 acres of land. Lermar Homes of Texas Land and Construction, Ltd. d/b/a Friendswood Development Company ("Lennar"), has purchased approximately 93.50 acres of land sold by BVSoPo. Lennar is under contract to BVSoPo to develop approximately 119.73 additional acres within the District. BVSoPo and Lennar are collectively referred to herein as the "Developers". Phillips 3 Land Holdings LLC (the "Major Landowner" or "Phillips") was formed for the sole purpose of owning land in the District Phillips currently owns approximately 21.80 acres within the District. The Developers and Major Landowner are related entities. BVSoPo has agreed to terms whereby they will purchase land within the District from Phillips for the purpose of development. The Developers and Major Landowner have entered into Development Financing Agreements with the District to provide financing for construction of water, sewer, and drainage and road facilities for the District. See "THE DEVELOPERS AND MAJOR LANDOWNER" and "TAX DATA —Principal Taxpayers." Water and Wastewater Retail water and wastewater service for development within the District is provided by College Station Utilities ("CSU"). CSU holds the requisite certificates of convenience and necessity over the land within the District. See "WATER SUPPLY AND WASTEWATER TREATMENT." RISK FACTORS THE PURCHASE AND OWNERSHIP OF THE BONDS ARE SUBJECT TO SPECIAL RISK FACTORS AND ALL PROSPECTIVE PURCHASERS ARE URGED TO EXAMINE CAREFULLY THE ENTIRE OFFICIAL STATEMENT FOR A DISCUSSION OF INVESTMENT RISKS, INCLUDING PARTICULARLY THE SECTION CAPTIONED "RISK FACTORS." 6 SELECTED FINANCIAL INFORMATION 2025 Certified Taxable Assessed Valuation..................................................................... $233,987,145 (a) Estimated Taxable Assessed Valuation as of August 1, 2025.............................. ..... ........... $312,670,759 (b) Gross Debt Outstanding (after issuance of the Bonds)......... ..... ....... ...... ............... ...... $37,520,000 Estimated Overlapping Debt... ..... ................... ..... . ...... ................................................. 6,323,013 (c) Gross Debt and Estimated Overlapping Debt... ..... ..... ........................ ..... .............. ..... $43,843,013 Ratios of Gross Debt to: 2025 Certified Taxable Assessed Valuation................ .......... ......................................., 16.04% Estimated Taxable Assessed Valuation as of August 1, 2025...... ..... ..... ....... ..... ........... 12.00% Ratios of Gross Debt and Estimated Overlapping Debt to: 2025 Certified Taxable Assessed Valuation................ .......... ................ ..... .................., 18.74% Estimated Taxable Assessed Valuation as of August 1, 2025...... ..... ..... ....................... 14.02% Fund Balance Available as ofNovember 7, 2025: Operating Fund.. $521,678 Road Escrow Fund. $58,458 (d) Road Debt Service Fund. $399,653 (e) (f) WS&D Debt Service Fund. $956,853 (e) Road Capital Projects Fund.. $32,029 WS&D Capital Projects Fund.. $0 2025 Tax Rate: RoadDebt Service.................................................................................................... $0.270 WS&D Debt Service...................................................................................... $0.550 Maintenance and Operations$0.160 Road Maintenance.. $0.020 Total$1.000 Projected Average Annual Debt Service Requirements (2026-2051) of the Bonds and the Outstanding Bonds ("Average Requirement")...... ..... ................... ..... ..... $2,449,334 Projected Tax Rate Required to Pay Average Requirement based upon: 2025 Certified Taxable Assessed Valuation at a 95% collection rate. ..... ...... ...... $1.11 /$100 A.V. Estimated Taxable Assessed Valuation as of August 1, 2025 at a 95% collection rate........... $0.83 /$100 A.V. Projected Maximum Annual Debt Service Requirements (2046) of the Bonds and the Oustanding Bonds ("Maximum Requirement")...... ...... .................. ..... ............... $2,584,185 Projected Tax Rate Required to Pay Maximum Requirement based upon: 2025 Certified Taxable Assessed Valuation at a 95% collection rate. ..... ................... ..... $1.17 /$100 A.V. Estimated Taxable Assessed Valuation as of August 1, 2025 at a 95% collection rate........... $0.87 /$100 A.V. (a) As certified by the Brazos Central Appraisal District (the "Appraisal District"). See "TAX PROCEDURES." (b) Provided by the Appraisal District for information purposes only. Such amount reflects the estimated value of taxable improvements on August 1, 2025. Taxes are levied based on value as certified by the Appraisal District as of January 1 of each year. No tax will be levied on such amount until it is certified. Increases in value occurring between January 1, 2025 and January 1, 2026, will be certified as of January 1, 2026, and provided for purposes of taxation in the fall of 2026. See "TAX PROCEDURES." (c) See "ESTIMATED OVERLAPPING DEBT STATEMENT." (d) The District maintains funds in the Road Escrow Fund for maintenance of public roads in accordance with its agreement with Brazos County. The District has levied a road maintenance tax for 2025. Those funds will be deposited into the Road Escrow Fund. (e) Neither Texas law nor the Bond Resolution requires the District to maintain any minimum balance in the Debt Service Fund. Although all of the District's debt, including the Outstanding Bonds and the Bonds, is payable from an unlimited tax pledge on parity, a pro rata portion of the District's ad valorem tax revenue will be allocated to bonds sold for road facilities, including the Bonds (the "Road Bonds"), and a portion will be allocated to bonds sold for water, sanitary sewer, drainage and storm sewer facilities (the "Water, Sewer and Drainage Bonds"). See "FINANCIAL STATEMENT (UNAUDITED) —Outstanding Bonds." The Road Debt Service Fund is not pledged to the Water, Sewer and Drainage Bonds and the Water, Sewer and Drainage Debt Service Fund is not pledged to the Road Bonds. (f) Accrued interest and twelve (12) months of capitalized interest on the Bonds will be deposited to the Road Debt Service Fund. See "USE AND DISTRIBUTION OF BOND PROCEEDS." Neither Texas law nor the Bond Resolution requires the District to maintain any minimum balance in the Debt Service Fund. 7 PRELIMINARY OFFICIAL STATEMENT $7,375,000 BRAZOS COUNTY MUNICIPAL UTLILTY DISTRICT NO. 1 (A political subdivision of the State of Texas located within Brazos County) UNLIMITED TAX ROAD BONDS, SERIES 2026 This Official Statement provides certain information in connection with the issuance by Brazos County Municipal Utility District No. 1 (the "District") of its $7,375,000 Unlimited Tax Road Bonds, Series 2026 (the "Bonds"). The Bonds are issued pursuant to a Bond Resolution authorizing the issuance of the Bonds (the "Bond Resolution") adopted by the Board of Directors of the District (the "Board"); an election held within the District; approval by the City of College Station (the "City"); Article III, Section 52 of the Texas Constitution; Chapters 49 and 54 of the Texas Water Code, as amended; and general laws of the State of Texas relating to the issuance of bonds by political subdivisions. This Official Statement includes descriptions, among others, of the Bonds and the Bond Resolution, and certain other information about the District and BV Southern Pointe Development, Inc. and Lennar Homes of Texas Land and Construction, Ltd. d/b/a Friendswood Development Company (the "Developers"), the developers of land within the District. All descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each document. Copies of documents may be obtained from the District upon payment of the costs of duplication therefor. RISK FACTORS General The Bonds, which are obligations of the District and not obligations of the State of Texas, Brazos County, the City or any other entity other than the District, will be secured by a continuing direct annual ad valorem tax levied, without legal limitation as to rate or amount, on all taxable property within the District. The ultimate security for payment of the principal of and interest on the Bonds depends on the ability of the District to collect from the property owners within the District all taxes levied against the property, or in the event of foreclosure, on the value of the taxable property with respect to taxes levied by the District and by other taxing authorities. Economic Factors and Interest Rates A substantial percentage of the taxable value of the District results from the current market value of single-family residences and developed lots which are being marketed by the Developers for sale to homebuilders for the construction of primary residences. The market value of such properties is related to general economic conditions in the City, the State of Texas and the nation and those conditions can affect the demand for such properties. Demand for property of this type and the construction of structures thereon can be significantly affected by factors such as interest rates, credit availability (see "Credit Markets and Liquidity in the Financial Markets" below), construction costs and the prosperity and demographic characteristics of the urban center toward which the marketing of residential and commercial property is directed. Decreased levels of construction activity would tend to restrict the growth of property values in the District or could adversely impact such values. Credit Markets and Liquidity in the Financial Markets Interest rates and the availability of mortgage and development funding have a direct impact on construction activity, particularly short-term interest rates at which landowners are able to obtain financing for development costs. Interest rate levels may affect the ability of a landowner with undeveloped property to undertake and complete construction activities within the District. Because of the numerous and changing factors affecting the availability of funds, particularly liquidity in the national credit markets, the District is unable to assess the future availability of such funds for continued construction within the District. The success of development within the District and growth of District taxable property values are, to a great extent, a function of the City and regional economies and national credit and financial markets. A downturn in the economic conditions in the College Station area, including Texas A&M University, or a decline in the nation's real estate and financial markets could adversely affect development in the District and restrain the growth of or reduce the value of the District's property tax base. 8 Developers Oblieations to the District There are no commitments from or obligations of the Developers, the Major Landowner, or any other landowner to the District to proceed at any particular rate or according to any specified plan with the development of land or the construction of improvements in the District, and there is no restriction on any landowner's right to sell its land. Failure of the Developers to develop the developable land or of builders to construct taxable improvements on developed tracts of land could restrict the rate of growth of taxable values in the District. The District cannot and does not make any representations that over the life of the Bonds the District will increase or maintain its taxable value. Competition The demand for and construction of single-family homes in the District could be affected by competition from other residential developments including other residential developments located in College Station. In addition to competition for new home sales from other developments, there are numerous previously -owned homes in the area of the District and in more established neighborhoods. Such homes could represent additional competition for new homes proposed to be sold within the District. The competitive position of the Developers in the sale of developed lots and of prospective builders in the construction of single-family residential houses within the District is affected by most of the factors discussed in this section. Such a competitive position directly affects the growth and maintenance of taxable values in the District. The District can give no assurance that building and marketing programs in the District by the Developers will be implemented or, if implemented, will be successful. Impact on District Tax Rates Assuming no further development, the value of the land and improvements currently within the District will be the major determinant of the ability or willingness of owners of property within the District to pay their taxes. The 2025 Certified Taxable Assessed Valuation is $233,987,145 and the Estimated Taxable Assessed Valuation as of August 1, 2025, is $312,670,759. See "FINANCIAL STATEMENT (UNAUDITED)." After issuance of the Bonds, the projected maximum debt service requirement will be $2,584,185 (2046) and the projected average annual debt service requirement will be $2,449,334 (2026-2051, inclusive). Assuming no increase or decrease from the 2025 Taxable Assessed Valuation, the issuance of no additional debt, and no other funds available for the payment of debt service, tax rates of $1.17 and $1.11 per $100 of taxable assessed valuation at a 95% collection rate would be necessary to pay the projected maximum debt service requirement and the projected average annual debt service requirement, respectively. Assuming no increase or decrease from the Estimated Taxable Assessed Valuation as of August 1, 2025, and no use of funds other than tax collections, tax rates of $0.87 and $0.83 per $100 of taxable assessed valuation at a 95% collection rate would be necessary to pay the projected maximum annual debt service requirement and the projected average annual debt service requirement, respectively. See "DEBT SERVICE REQUIREMENTS." Although calculations have been made regarding tax rates necessary to pay the debt service on the Bonds and the Outstanding Bonds based upon the 2025 Certified Taxable Assessed Valuation and the Estimated Taxable Valuation as of August 1, 2025, the District makes no representations regarding the future level of assessed valuation within the District. Increases in taxable values depend primarily on the continuing construction of taxable improvements within the District. See "TAX PROCEDURES" and "TAX DATA —Tax Adequacy for Debt Service." Undeveloped Acreaee and Vacant Lots There are approximately 171.29 developable acres of land within the District that have not been fully provided with water, sanitary sewer, storm drainage, and detention facilities and roads necessary for the construction of taxable improvements (including approximately 98.35 acres on which utility construction is underway) 199 completed vacant lots available for home construction, and 498 single-family residential lots under construction. Future increases in value will result primarily from the construction of homes by builders. Failure of the Developers to develop the developable land or of builders to build taxable improvements on the developed lots could restrict the rate of growth of taxable values in the District. The District makes no representation as to when or if development of this acreage will occur or that the lot sales and building program will be successful. See "THE DISTRICT —Status of Development." 9 Increase in Costs of Buildine Materials and Labor Shortaees As a result of supply issues, shipping constraints, and ongoing trade disputes (including tariffs), there have been recent substantial increases in the cost of lumber and other building materials, causing many homebuilders and general contractors to experience budget overruns. Further, the unpredictable nature of current trade policy (including the threatened imposition of tariffs) may impact the ability of the Developers or homebuilders in the District to estimate costs. Additionally, immigration policies may affect the State's workforce, and any labor shortages that could occur may impact the rate of construction within the District. Uncertainty surrounding availability and cost of materials may result in decreased levels of construction activity, and may restrict the growth of property values in the District. The District makes no representations regarding the probability of development or homebuilding continuing in a timely manner or the effects that current or future economic or governmental circumstances may have on any plans of the Developers or homebuilders. Future Debt The District reserves in the Bond Resolution the right to issue the remaining $85,970,000 principal amount of authorized but unissued unlimited tax bonds for roads after the issuance of the Bonds and the refunding of outstanding road bonds, and the remaining $215,505,000 principal amount of unlimited tax bonds authorized but unissued for water, sewer, drainage and storm sewer systems and refunding of such outstanding bonds. The District may also issue additional bonds which may be voted hereafter. After reimbursement from the proceeds of the Bonds, the Developers will have expended approximately $33,840,000 for design, construction and acquisition of water, sanitary sewer, and drainage facilities and roadways not yet reimbursed. See "THE BONDS —Issuance of Additional Debt." The issuance of such obligations may adversely affect the investment security of the Bonds. The District does not employ any formula with regard to assessed valuations or tax collections or otherwise to limit the amount of bonds which may be issued. Any bonds issued by the District, however, must be approved by the Attorney General of Texas and the Board of the District and any bonds issued to acquire or construct water, sanitary sewer and drainage facilities must be approved by the TCEQ. Tax Collection Limitations The District's ability to make debt service payments may be adversely affected by its inability to collect ad valorem taxes. Under Texas law, the levy of ad valorem taxes by the District constitutes a lien in favor of the District on a parity with the liens of all other state and local taxing authorities on the property against which taxes are levied, and such lien may be enforced by foreclosure. The District's ability to collect ad valorem taxes through such foreclosure may be impaired by market conditions limiting the proceeds from a foreclosure sale of taxable property and collection procedures. While the District has a lien on taxable property within the District for taxes levied against such property, such lien can be foreclosed only in a judicial proceeding. The costs of collecting any such taxpayer's delinquencies could substantially reduce the net proceeds to the District from a tax foreclosure sale. Finally, a bankruptcy court with jurisdiction over bankruptcy proceedings initiated by or against a taxpayer within the District pursuant to the Federal Bankruptcy Code could stay any attempt by the District to collect delinquent ad valorem taxes against such taxpayer. In addition to the automatic stay against collection of delinquent taxes afforded a taxpayer during the pendency of a bankruptcy, a bankruptcy could affect payment of taxes in two other ways: first, a debtor's confirmation plan may allow a debtor to make installment payments on delinquent taxes for up to six years; and, second, a debtor may challenge, and a bankruptcy court may reduce, the amount of any taxes assessed against the debtor, including taxes that have already been paid. See "TAX PROCEDURES —District's Rights in the Event of Tax Delinquencies." Registered Owners' Remedies and Bankruptcy Limitations If the District defaults in the payment of principal, interest, or redemption price on the Bonds when due, or if it fails to make payments into any fund or funds created in the Bond Resolution, or defaults in the observation or performance of any other covenants, conditions, or obligations set forth in the Bond Resolution, the Registered Owners have the statutory right of a writ of mandamus issued by a court of competent jurisdiction requiring the District and its officials to observe and perform the covenants, obligations, or conditions prescribed in the Bond Resolution. Except for mandamus, the Bond Resolution does not specifically provide for remedies to protect and enforce the interests of the Registered Owners. There is no acceleration of maturity of the Bonds in the event of default and, consequently, the remedy of mandamus may have to be relied upon from year to year. Further, there is no trust indenture or trustee, and 10 all legal actions to enforce such remedies would have to be undertaken at the initiative of, and be financed by, the Registered Owners. Statutory language authorizing local governments such as the District to sue and be sued does not waive the local government's sovereign immunity from suits for money damages, so that in the absence of other waivers of such immunity by the Texas Legislature, a default by the District in its covenants in the Bond Resolution may not be reduced to a judgment for money damages. If such a judgment against the District were obtained, it could not be enforced by direct levy and execution against the District's property. Further, the Registered Owners cannot themselves foreclose on property within the District or sell property within the District to enforce the tax lien on taxable property to pay the principal of and interest on the Bonds. The enforceability of the rights and remedies of the Registered Owners may further be limited by a State of Texas statute reasonably required to attain an important public purpose or by laws relating to bankruptcy, reorganization or other similar laws of general application affecting the rights of creditors of political subdivisions, such as the District. Subject to the requirements of Texas law discussed below, a political subdivision such as the District may voluntarily file a petition for relief from creditors under Chapter 9 of the Federal Bankruptcy Code, 11 U.S.C. Sections 901-946. The filing of such petition would automatically stay the enforcement of Registered Owner's remedies, including mandamus. The automatic stay would remain in effect until the federal bankruptcy judge hearing the case dismisses the petition, enters an order granting relief from the stay or otherwise allows creditors to proceed against the petitioning political subdivision. A political subdivision such as the District may qualify as a debtor eligible to proceed in a Chapter 9 case only if it is (1) authorized to file for federal bankruptcy protection by applicable state law, (2) is insolvent or unable to meet its debts as they mature, (3) desires to effect a plan to adjust such debts, and (4) has either obtained the agreement of or negotiated in good faith with its creditors or is unable to negotiate with its creditors because negotiation is impracticable. Special districts such as the District must obtain the approval of the Commission as a condition to seeking relief under the Federal Bankruptcy Code. The Commission is required to investigate the financial condition of a financially troubled district and authorize such district to proceed under federal bankruptcy law only if such district has fully exercised its rights and powers under Texas law and remains unable to meet its debts and other obligations as they mature. Notwithstanding noncompliance by a district with Texas law requirements, the District could file a voluntary bankruptcy petition under Chapter 9, thereby invoking the protection of the automatic stay until the bankruptcy court, after a hearing, dismisses the petition. A federal bankruptcy court is a court of equity and federal bankruptcy judges have considerable discretion in the conduct of bankruptcy proceedings and in making the decision of whether to grant the petitioning district relief from its creditors. While such a decision might be appealable, the concomitant delay and loss of remedies to the Registered Owner could potentially and adversely impair the value of the Registered Owner's claim. If a petitioning district were allowed to proceed voluntarily under Chapter 9 of the Federal Bankruptcy Code, it could file a plan for an adjustment of its debts. If such a plan were confirmed by the bankruptcy court, it could, among other things, affect Registered Owners by reducing or eliminating the amount of indebtedness, deferring or rearranging the debt service schedule, reducing or eliminating the interest rate, modifying or abrogating the collateral or security arrangements, substituting (in whole or in part) other securities, and otherwise compromising and modifying the rights and remedies of the Registered Owners' claims against a district. A district may not be forced into bankruptcy involuntarily. Continuing Compliance with Certain Covenants The Bond Resolution contains covenants by the District intended to preserve the exclusion from gross income for federal income tax purposes of interest on the Bonds. Failure by the District to comply with such covenants in the Bond Resolution on a continuous basis prior to maturity of the Bonds could result in interest on the Bonds becoming taxable retroactively to the date of original issuance. See "TAX MATTERS." Marketability The District has no agreement with the Initial Purchaser regarding the reoffering yields or prices of the Bonds and has no control over trading of the Bonds in the secondary market. Moreover, there is no assurance that a secondary market will be made in the Bonds. If there is a secondary market, the difference between the bid and asked price of the Bonds may be greater than the difference between the bid and asked price of bonds of comparable maturity and quality issued by more traditional issuers as such bonds are generally bought, sold or traded in the secondary market. 11 Environmental Regulations Wastewater treatment, water supply, storm sewer facilities and construction activities within the District are subject to complex environmental laws and regulations at the federal, state and local levels that may require or prohibit certain activities that affect the environment, such as: • Requiring permits for construction and operation of water wells, wastewater treatment and other facilities; • Restricting the manner in which wastes are treated and released into the air, water and soils; • Restricting or regulating the use of wetlands or other properties; or • Requiring remedial action to prevent or mitigate pollution. Sanctions against a municipal utility district or other type of special purpose district for failure to comply with environmental laws and regulations may include a variety of civil and criminal enforcement measures, including assessment of monetary penalties, imposition of remedial requirements and issuance of injunctions to ensure future compliance. Environmental laws and compliance with environmental laws and regulations can increase the cost of planning, designing, constructing and operating water production and wastewater treatment facilities. Environmental laws can also inhibit growth and development within the District. Further, changes in regulations occur frequently, and any changes that result in more stringent and costly requirements could materially impact the District. Air Quality Issues. Air quality control measures required by the United States Environmental Protection Agency (the "EPA") and the Texas Commission on Environmental Quality (the "TCEQ") may impact new industrial, commercial and residential development in Brazos County. Under the Clean Air Act ("CAA") Amendments of 1990, Brazos County has been designated an attainment/unclassifiable area under two separate federal ozone standards: the eight - hour ozone standard of 75 ppb promulgated by the EPA in 2008 (the "2008 Ozone Standard"), and the EPA's most - recent promulgation of an even lower, 70 ppb eight -hour ozone standard in 2015 (the "2015 Ozone Standard"). Although Brazos County is currently in attainment, Brazos County has been and continues to be near the non - attainment thresholds for ozone. Accordingly, it is possible that Brazos County could be re-classified as a nonattainment area should ozone levels increase. A designation of nonattainment for ozone or any other pollutant could negatively impact business due to the additional permitting/regulatory constraints that accompany this designation and because of the community stigma associated with a nonattainment designation. It is possible that additional controls will be necessary to allow Brazos County to maintain attainment with the ozone standards. Such additional controls could have a negative impact on Brazos County's economic growth and development. Water Supply & Discharge Issues. Water supply and discharge regulations that municipal utility districts, including the District, may be required to comply with involve: (1) public water supply systems; (2) wastewater discharges from treatment facilities; (3) storm water discharges; and (4) wetlands dredge and fill activities. Each of these is addressed below: Pursuant to the federal Safe Drinking Water Act ("SDWA") and the EPA's National Primary Drinking Water Regulations ("NPDWRs"), which are implemented by the TCEQ's Water Supply Division, a municipal utility district's provision of water for human consumption is subject to extensive regulation as a public water system. Municipal utility districts must generally provide treated water that meets the primary and secondary drinking water quality standards adopted by the TCEQ, the applicable disinfectant residual and inactivation standards, and the other regulatory action levels established under the agency's rules. The EPA has established NPDWRs for more than ninety (90) contaminants and has identified and listed other contaminants which may require national drinking water regulation in the future. Further, the EPA has established a NPDWR for six (6) Per- and Polyflouroalkyl Substances ("PFAS"), which requires public water systems to perform certain monitoring and remediation measures. Public water systems may be subject to additional PFAS regulation in the future, which could increase the cost of constructing, operating, and maintaining water production and distribution facilities. Texas Pollutant Discharge Elimination System ("TPDES") permits set limits on the type and quantity of discharge, in accordance with state and federal laws and regulations. The TCEQ reissued the TPDES Construction General Permit (TXR150000) ("CGP"), with an effective date of March 5, 2023, which is a general permit authorizing the discharge of stormwater runoff associated with small and large construction sites and certain non-stormwater discharges into surface water in the state. The CGP has a 5-year permit term, and is then subject to renewal. Moreover, the Clean Water Act ("CWA") and Texas Water Code require municipal wastewater treatment plants to meet secondary treatment effluent limitations and more stringent water quality -based limitations and requirements to comply with the 12 Texas water quality standards. Any water quality -based limitations and requirements with which a municipal utility district must comply may have an impact on the municipal utility district's ability to obtain and maintain compliance with TPDES permits. The District is subject to the TCEQ's General Permit for Phase II (Small) Municipal Separate Storm Sewer Systems (the "MS4 Permit"), which was issued by the TCEQ on August 15, 2024. The MS4 Permit authorizes the discharge of stormwater to surface water in the state from small municipal separate storm sewer systems. The District has applied for coverage under the MS4 Permit and is awaiting final approval from the TCEQ. Costs associated with these compliance activities could be substantial in the future. Operations of utility districts, including the District, are also potentially subject to requirements and restrictions under the CWA regarding the use and alteration of wetland areas that are within the "waters of the United States." The District must obtain a permit from the United States Army Corps of Engineers ("USACE") if operations of the District require that wetlands be filled, dredged, or otherwise altered. In 2023, the Supreme Court of the United States issued its decision in Sackett v. EPA, which clarified the definition of "waters of the United States" and significantly restricted the reach of federal jurisdiction under the CWA. Under the Sackett decision, "waters of the United States" includes only geographical features that are described in ordinary parlance as "streams, oceans, rivers, and lakes" and to adjacent wetlands that are indistinguishable from such bodies of water due to a continuous surface connection. Subsequently, the EPA and USACE issue a final rule amending the definition of "waters of the United States" under the CWA to conform with the Supreme Court's decision. While the Sackett decision and subsequent regulatory action removed a great deal of uncertainty regarding the ultimate scope of "waters of the United States" and the extent of EPA and USACE jurisdiction, operations of municipal utility districts, including the District, could potentially be subject to additional restrictions and requirements, including additional permitting requirements, in the future. Specific Flood Type Risks The District is subject to the following flood risks: Riverine, or fluvial, flooding occurs when water levels rise over the top of river, bayou or channel banks due to excessive rain from tropical systems making landfall and/or persistent thunderstorms over the same area for extended periods of time. The damage from a riverine flood can be widespread. The overflow can affect smaller rivers and streams downstream or may sheet -flow over land. Flash flooding is a type of riverine flood that is characterized by an intense, high velocity torrent of water that occurs in an existing river channel with little to no notice. Flash flooding can also occur even if no rain has fallen, for instance, after a levee, dam or reservoir has failed or experienced an uncontrolled release, or after a sudden release of water by a debris or ice jam. In addition, planned or unplanned controlled releases from a dam, levee or reservoir also may result in flooding in areas adjacent to rivers, bayous or man made drainage systems downstream (canals or channels). Risk Factors Related to the Purchase of Municipal Bond Insurance The District has applied for a bond insurance policy (the "Policy") to guarantee the scheduled payment of principal and interest on the Bonds. If the Policy is purchased, investors should be aware of the following risk factors: The long-term ratings on the Bonds are dependent in part on the financial strength of the insurer and its claim paying ability. The insurer's financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the insurer and of the ratings on the Bonds insured by the insurer will not be subject to downgrade and such event could adversely affect the market price of the Bonds or the marketability (liquidity) for the Bonds. See "MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE." The obligations of the insurer are contractual obligations and in an event of default by the Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies. Neither the District nor the Initial Purchaser has made independent investigations into the claims paying ability of the insurer and no assurance or representation regarding the financial strength or projected financial strength of the insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the 13 District to pay principal and interest on the Bonds and the claims -paying ability of the insurer, particularly over the life of the investment. See "MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE" for further information provided by the Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the Insurer. THE BONDS General The following is a description of some of the terms and conditions of the Bonds, which description is qualified in its entirety by reference to the Bond Resolution. The Bond Resolution authorizes the issuance and sale of the Bonds and prescribes the terms, conditions, and provisions for the payment of the principal of and interest on the Bonds by the District. The Bonds will be dated and accrue interest from January 1, 2026, which interest is payable on March 1, 2026, and on each September 1 and March 1 thereafter (each, an "Interest Payment Date"), until the earlier of maturity or prior redemption. The Bonds mature on September 1 in the amounts and years and bear interest at the rates shown on the cover page of this Official Statement. Interest calculations are based on a 360-day year comprised of twelve 30-day months. The Bonds will be issued in fully registered form in denominations of $5,000 or integral multiples thereof. Authority for Issuance At a bond election held within the District on November 5, 2019, the voters of the District authorized the issuance of a total of $104,060,000 principal amount of unlimited tax bonds for roads and refunding outstanding road bonds. The Bonds are being issued pursuant to such authorization. After issuance of the Bonds, $85,970,000 principal amount of unlimited tax bonds will remain authorized but unissued for roads and refunding outstanding road bonds. See "Issuance of Additional Debt" below. The Bonds are issued pursuant to the Bond Resolution; an election held within the District; approval by the City; Article III, Section 52 of the Texas Constitution; and the general laws of the State of Texas, including Chapters 49 and 54 of the Texas Water Code, as amended. Before the Bonds can be issued, the Attorney General of Texas must pass upon the legality of certain related matters. The Attorney General of Texas does not guarantee or pass upon the safety of the Bonds as an investment or upon the adequacy of the information contained in this Official Statement. Source of and Security for Payment While the Bonds or any part of the principal thereof or interest thereon remain outstanding and unpaid, the District covenants in the Bond Resolution to levy a continuing direct annual ad valorem tax, without legal limitation as to rate or amount, upon all taxable property in the District sufficient to pay the principal of and interest on the Bonds, the Outstanding Bonds, and any future bonds payable in whole or in part from taxes, with full allowance being made for delinquencies and costs of collection. In the Bond Resolution, the District covenants that said taxes are irrevocably pledged to the payment of the interest on and principal of the Bonds and to no other purpose. The Bonds are obligations of the District and are not the obligations of the State of Texas, Brazos County, the City, or any entity other than the District. Funds In the Bond Resolution, the Road Debt Service Fund is confirmed, and the proceeds from all taxes levied, assessed and collected for and on account of the Bonds authorized by the Bond Resolution shall be deposited, as collected, in such fund. 14 The District also maintains a Water, Sewer and Drainage Debt Service that is not pledged to Road Bonds, including the Bonds. Funds in the Water, Sewer and Drainage Debt Service are not available to pay principal of and interest on Road Bonds, including the Bonds. Accrued interest and twelve (12) months of capitalized interest on the Bonds shall be deposited into the Road Debt Service Fund upon receipt. The remaining proceeds from the sale of the Bonds, including interest earnings thereon, shall be deposited into the Road Capital Projects Fund, to pay the costs of acquiring or constructing road facilities, to pay for developer interest and to pay the costs of issuing the Bonds. See "USE AND DISTRIBUTION OF BOND PROCEEDS" for a more complete description of the use of Bond proceeds. Method of Payment of Principal and Interest In the Bond Resolution, the Board has appointed The Bank of New York Mellon Trust Company, N.A. in Houston, Texas as the initial Paying Agent/Registrar for the Bonds. The principal of the Bonds shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, at the principal payment office of the Paying Agent/Registrar in Houston, Texas. Interest on each Bond shall be payable by check or draft payable on each Interest Payment Date, mailed by the Paying Agent/Registrar on or before each Interest Payment Date to the Registered Owners as shown on the Register on the fifteenth (15th) day (whether or not a business day) of the month prior to each interest payment date (defined herein as the "Record Date"), to the address of such Registered Owner as shown on the Paying Agent/Registrar's records (the "Register") or by such other customary banking arrangements as may be agreed to by the Paying Agent/Registrar and the Registered Owners at the risk and expense of the Registered Owners. If the date for payment of the principal of or interest on any Bond is not a business day, then the date for such payment shall be the next succeeding business day, as defined in the Bond Resolution. No ArbitraEe The District will certify as of the date the Bonds are delivered and paid for that, based upon all facts and estimates now known or reasonably expected to be in existence on the date the Bonds are delivered and paid for, the District reasonably expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds, or any portion of the Bonds, to be "arbitrage bonds" under the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations prescribed thereunder. Furthermore, all officers, employees, and agents of the District have been authorized and directed to provide certifications of facts and estimates that are material to the reasonable expectations of the District as of the date the Bonds are delivered and paid for. In particular, all or any officers of the District are authorized to certify to the facts and circumstances and reasonable expectations of the District on the date the Bonds are delivered and paid for regarding the amount and use of the proceeds of the Bonds. Moreover, the District covenants in the Bond Resolution that it shall make such use of the proceeds of the Bonds, regulate investment of proceeds of the Bonds, and take such other and further actions and follow such procedures, including, without limitation, calculating the yield on the Bonds, as may be required so that the Bonds shall not become "arbitrage bonds" under the Code and the regulations prescribed from time to time thereunder. Redemption Provisions The District reserves the right, at its option, to redeem the Bonds maturing on and after September 1, 2032, prior to their scheduled maturities, in whole or from time to time in part, in integral multiples of $5,000, on September 1, 2031, or on any date thereafter, at a price of par plus accrued interest on the principal amounts called for redemption to the date fixed for redemption. If fewer than all of the Bonds are redeemed at any time, the particular maturities and amounts of Bonds to be redeemed shall be selected by the District. If fewer than all the Bonds of any maturity are redeemed at any time, the particular Bonds within a maturity to be redeemed shall be selected by the Paying Agent/Registrar by lot or other customary method of selection (or by DTC in accordance with its procedures while the Bonds are in book -entry -only form). Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Paying Agent/Registrar at least thirty (30) days prior to the date fixed for redemption by sending written notice by first class 15 mail to the Registered Owner of each Bond to be redeemed in whole or in part at the address shown on the register. Such notices shall state the redemption date, the redemption price, the place at which the Bonds are to be surrendered for payment and, if fewer than all the Bonds outstanding within any one maturity are to be redeemed, the numbers of the Bonds or the portions thereof to be redeemed. Any notice given shall be conclusively presumed to have been duly given, whether or not the Registered Owner receives such notice. By the date fixed for redemption, due provision shall be made with the Paying Agent/Registrar for payment of the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest to the date fixed for redemption. When Bonds have been called for redemption in whole or in part and due provision has been made to redeem the same as herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely from the funds so provided for redemption, and the rights of the Registered Owners to collect interest that would otherwise accrue after the redemption date on any Bond or portion thereof called for redemption shall terminate on the date fixed for redemption. Record Date The record date for payment of the interest on any regularly scheduled Interest Payment Date is defined as the 15th day of the month (whether or not a business day) preceding such Interest Payment Date. Registration and Transfer So long as any Bonds remain outstanding, the Paying Agent/Registrar shall keep the register at its principal payment office and, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of Bonds in accordance with the terms of the Bond Resolution. While the Bonds are in the Book -Entry -Only System, the Bonds will be registered in the name of Cede & Co. and will not be transferred. See "BOOK -ENTRY -ONLY SYSTEM." Replacement of Paving Agent/Reeistrar Provision is made in the Bond Resolution for replacement of the Paying Agent/Registrar. If the Paying Agent/Registrar is replaced by the District, the new paying agent/registrar shall act in the same capacity as the previous Paying Agent/Registrar. Any paying agent/registrar selected by the District shall be a national or state banking institution, a corporation organized and doing business under the laws of the United States of America or of any State, authorized under such laws to exercise trust powers, and subject to supervision or examination by federal or state authority, to act as Paying Agent/Registrar for the Bonds. Lost. Stolen or Destroyed Bonds In the event the book -entry -only system is discontinued, upon the presentation and surrender to the Paying Agent/Registrar of a mutilated Bond, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. If any Bond is lost, stolen or destroyed, the District, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall, upon receipt of certain documentation from the Registered Owner and an indemnity bond, execute and the Paying Agent/Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount bearing a number not contemporaneously outstanding. Registered Owners of lost, stolen or destroyed bonds will be required to pay the District's costs to replace such bond. In addition, the District or the Paying Agent/Registrar may require the Registered Owner to pay a sum sufficient to cover any tax or other governmental charge that may be imposed. Issuance of Additional Debt After issuance of the Bonds, the District will have $85,970,000 principal amount of unlimited tax bonds authorized but unissued for roads and refunding of such outstanding bonds and $215,505,000 principal amount of unlimited tax bonds authorized but unissued for water, sanitary sewer, drainage and storm sewer systems and refunding of such outstanding bonds. The District anticipates issuing additional bonds in the future. The Bond Resolution imposes no limitation on the amount of additional parity bonds which may be authorized for issuance by the District's voters or 16 the amount ultimately issued by the District. See "USE AND DISTRIBUTION OF BOND PROCEEDS —Future Debt" and "UNLIMITED TAX BONDS AUTHORIZED BUT UNISSUED." The District also is authorized by statute to engage in fire -fighting activities, including the issuing of bonds payable from taxes for such purpose. Before the District could issue fire -fighting bonds payable from taxes, the following actions would be required: (a) approval of a detailed fire plan by the Commission; (b) authorization of a detailed fire plan and fire bonds by the District's voters at an election; (c) approval of bonds by the Commission; and (d) approval of bonds by the Attorney General of Texas. The Board has not considered preparing such a fire plan or calling such an election at this time. Because the District is located within Brazos County, current law does not authorize the District to issue bonds for parks and recreational facilities purposes. Issuance of additional bonds and the levy of taxes in connection therewith could dilute the investment security for the Bonds. Annexation by the City: Strategic Partnership Agreement Chapter 42, Texas Local Government Code, provides that, within the limits described therein, the unincorporated area contiguous to the corporate limits of any city comprises that city's extraterritorial jurisdiction. The size of extraterritorial jurisdiction depends in part on the city's population. For the City, the extraterritorial jurisdiction consists of all the contiguous unincorporated areas not a part of any other city or any other city's extraterritorial jurisdiction and within three (3) miles of the corporate limits of the City. With certain exceptions, a city may annex territory only within the confines of its extraterritorial jurisdiction. When a city annexes additional territory, the city's extraterritorial jurisdiction expands in conformity with such annexation. The District lies within the extraterritorial jurisdiction of the City. The City cannot annex territory within the District unless it annexes the entire District. The City may not annex the District unless (i) such annexation has been approved by a majority of those voting in an election held for that purpose within the area to be annexed, and (ii) if the registered voters in the area to be annexed do not own more than 50 percent of the land in the area, a petition has been signed by more than 50 percent of the landowners consenting to the annexation. Notwithstanding the preceding sentence, the described election and petition process does not apply during the term of a strategic partnership agreement under Section 43.0751, Texas Local Government Code between the City and the District specifying the procedures for full purpose annexation of all or a portion of the District. The District and the City entered into a Strategic Partnership Agreement for a term of thirty (30) years beginning May 31, 2016. Pursuant to the Strategic Partnership Agreement which sets forth the terms of full purpose annexation, the City will not annex the property in the District until (i) at least 90% of the developable acreage within the District has been developed with water, wastewater and drainage and road facilities, and (ii) the Developers have been reimbursed to the maximum extent permitted by the rules of the TCEQ or the City assumes any obligation for such reimbursement. In the event a commercial area is developed, the city may annex for limited purposes such commercial area, and the City may impose its sales and use tax within the commercial area. If the District is annexed, the City will assume the District's assets and obligations (including the Bonds) and dissolve the District (see "UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF COLLEGE STATION.") The City may decide in its sole discretion to continue the District as a "limited district" for a period of up to ten years. No representation is made as to whether or not the City will annex the District at any time in the future. Moreover, no representation is made concerning the ability of the City to make debt service payments should annexation occur. Consolidation The District has the legal authority to consolidate with other districts and, in connection therewith, to provide for the consolidation of its assets (such as cash and the utility system) and liabilities (such as the Bonds), with the assets and liabilities of districts with which it is consolidating. Although no consolidation is presently contemplated by the District, no representation is made concerning the likelihood of consolidation in the future. 17 Remedies in Event of Default If the District defaults in the payment of principal, interest, or redemption price on the Bonds when due, or if it fails to make payments into any fund or funds created in the Bond Resolution, or defaults in the observance or performance of any other covenants, conditions, or obligations set forth in the Bond Resolution, the Registered Owners have the statutory right of a writ of mandamus issued by a court of competent jurisdiction requiring the District and its officials to observe and perform the covenants, obligations, or conditions prescribed in the Bond Resolution. Except for mandamus, the Bond Resolution does not specifically provide for remedies to protect and enforce the interests of the Registered Owners. There is no acceleration of maturity of the Bonds in the event of default and, consequently, the remedy of mandamus may have to be relied upon from year to year. Further, there is no trust indenture or trustee, and all legal actions to enforce such remedies would have to be undertaken at the initiative of, and be financed by, the Registered Owners. Statutory language authorizing local governments such as the District to sue and be sued does not waive the local government's sovereign immunity from suits for money damages, so that in the absence of other waivers of such immunity by the Texas Legislature, a default by the District in its covenants in the Bond Resolution may not be reduced to a judgment for money damages. If such a judgment against the District were obtained, it could not be enforced by direct levy and execution against the District's property. Further, the Registered Owners cannot themselves foreclose on property within the District or sell property within the District to enforce the tax lien on taxable property to pay the principal of and interest on the Bonds. The enforceability of the rights and remedies of the Registered Owners may further be limited by a State of Texas statute reasonably required to attain an important public purpose or by laws relating to bankruptcy, reorganization or other similar laws of general application affecting the rights of creditors of political subdivisions, such as the District. See "RISK FACTORS - Registered Owners' Remedies and Bankruptcy Limitations." Legal Investment and Eligibility to Secure Public Funds in Texas The following is quoted from Section 49.186 of the Texas Water Code, and is applicable to the District: "(a) All bonds, notes, and other obligations issued by a district shall be legal and authorized investments for all banks, trust companies, building and loan associations, savings and loan associations, insurance companies of all kinds and types, fiduciaries, and trustees, and for all interest and sinking funds and other public funds of the state, and all agencies, subdivisions, and instrumentalities of the state, including all counties, cities, towns, villages, school districts, and all other kinds and types of districts, public agencies, and bodies politic." "(b) A district's bonds, notes, and other obligations are eligible and lawful security for all deposits of public funds of the state, and all agencies, subdivisions, and instrumentalities of the state, including all counties, cities, towns, villages, school districts, and all other kinds and types of districts, public agencies, and bodies politic, to the extent of the market value of the bonds, notes, and other obligations when accompanied by any unmatured interest coupons attached to them." The Public Funds Collateral Act (Chapter 2257, Texas Government Code) also provides that bonds of the District (including the Bonds) are eligible as collateral for public funds. No representation is made that the Bonds will be suitable for or acceptable to financial or public entities for investment or collateral purposes. No representation is made concerning other laws, rules, regulations, or investment criteria which might apply to or which might be utilized by any of such persons or entities to limit the acceptability or suitability of the Bonds for any of the foregoing purposes. Prospective purchasers are urged to carefully evaluate the investment quality of the Bonds as to the suitability or acceptability of the Bonds for investment or collateral purposes. Defeasance The Bond Resolution provides that the District may discharge its obligations to the Registered Owners of any or all of the Bonds to pay principal, interest, and redemption price thereon in any manner permitted by law. Under current Texas law, such discharge may be accomplished either (i) by depositing with the Comptroller of Public Accounts of the State of Texas a sum of money equal to the principal of, premium, if any, and all interest to accrue on the Bonds to maturity or redemption or (ii) by depositing with any place of payment (paying agent) of the Bonds or other obligations of the District payable from revenues or from ad valorem taxes or both, amounts sufficient to provide for the payment and/or redemption of the Bonds; provided that such deposits may be invested and reinvested only in (a) direct obligations of the United States of America, (b) noncallable obligations of an agency or instrumentality of the 18 United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the District adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the District adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and that mature and/or bear interest payable at such times and in such amounts as will be sufficient to provide for the scheduled payment and/or redemption of the Bonds. Upon such deposit as described above, such bonds shall no longer be regarded as outstanding or unpaid. After firm banking and financial arrangements for the discharge and final payment or redemption of the Bonds have been made as described above, all rights of the District to initiate proceedings to call the Bonds for redemption or take any other action amending the terms of the Bonds are extinguished; provided, however, that the right to call the Bonds for redemption is not extinguished if the District: (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Bonds for redemption; (ii) gives notice of the reservation of that right to the owners of the Bonds immediately following the making of the firm banking and financial arrangements; and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes. There is no assurance that the current law will not be changed in the future in a manner which would permit investments other than those described above to be made with amounts deposited to defease the Bonds. BOOK -ENTRY -ONLY SYSTEM The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy or completeness thereof The District cannot and does not give any assurances that DTC, DTC Direct Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) Bonds representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) prepayment or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will do so on a timely basis or that DTC, DTC Direct Participants or DTC Indirect Participants will act in the manner described in this Official Statement. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current `Procedure" of DTC to be followed in dealing with DTC Direct Participants are on file with DTC. The Depository Trust Company, New York, New York ("DTC"), will act as securities depository for the Bonds. The Bonds will be issued as fully -registered Bonds registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. With respect to the Bonds, one fully - registered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.6 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a rating of "AA+" 19 from S&P Global Ratings. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). All payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District or the Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with Bonds held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Paying Agent/Registrar, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Paying Agent/Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. 20 The District may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the District believes to be reliable, but neither the District nor the Initial Purchaser take any responsibility for the accuracy thereof. THE DISTRICT General The District was created by order of the TCEQ dated January 14, 2015. The District contains approximately 553 acres of land and is located in Brazos County on the east side of Texas State Highway 6 and the north side of Peach Creek Cut Off Road. The District is approximately 8 miles south of downtown College Station. The District abuts the corporate limits of and lies entirely within the extraterritorial jurisdiction of the City and within the boundaries of the College Station Independent School District. See "AERIAL PHOTOGRAPH." The District is empowered, among other things, to purchase, construct, operate and maintain all works, improvements, facilities and plants necessary for the supply and distribution of water; the collection, transportation, and treatment of wastewater; and the control and diversion of storm water. The District is also empowered to construct thoroughfare, arterial and collector roads and improvements in aid thereof. The District may issue bonds and other forms of indebtedness to purchase or construct all of such facilities. The TCEQ exercises continuing supervisory jurisdiction over the District only for the water, wastewater and drainage projects. The District is required to observe certain requirements of the City which, along with Texas law, limit the purposes for which the District may sell bonds for the acquisition, construction, and improvement of facilities and the refunding of outstanding debt obligations; limit the net effective interest rate on such bonds and other terms of such bonds; and require certain public facilities to be designed in accordance with applicable City standards. Construction and operation of the District's facilities are subject to the regulatory jurisdiction of additional government agencies. See "UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF COLLEGE STATION." [Remainder of Page Left Intentionally Blank] 21 Land Use Approximate Single Family Residential Acres Lots Southem Pointe Community Section 10049.18 150 Southern Pointe Community Section 101.. 10.44 57 Southern Pointe Community Section 102.. 9.90 56 Southern Pointe Community Section 103/11914.85 84 Southem Pointe Community Section 104/12011.99 65 Southern Pointe Community Section 200.. 26.07 65 Southern Pointe Community Section 201..... 15.76 83 Southern Pointe Community Section 106..... 10.40 57 Southern Pointe Community Section 400.. 15.51 67 Southern Pointe Community Section 202... 18.81 97 Southern Pointe Community Section 10514.06 69 Southem Pointe Community Section 203.. 23.59 129 Southern Pointe Community Section 700 .. 18.08 88 Southern Pointe Community Section 600 (a) 16.28 81 Southern Pointe Community Section 500 (b).. 11.25 59 Subtotal.. 266.17 1,207 Future Development (c).. 171.29 Future Commercial and Multi -family (d).. 55.33 Recreation/Open Space.. 60.07 Total.. 553 (a) Lots under construction, expected to be completed in November 2025. (b) Lots under construction, expected to be completed in January 2026. (c) Includes approximately 70.82 acres of land expected to be served with underground utilities in the second quarter of 2026. (d) Utility construction is underway with completion expected in August 2026. Status of Development Status of Development as of November 3, 2025: Completed Occupied Homes . 752 Completed Unoccupied Homes (including 6 model homes). 66 Homes Under Construction.. 50 Completed Lots Available for Home Construction. 199 Lots Under Construction Residential.. 498 (a) Lots Under Construction Commercial 20 Estimated Population.. 2,632 (b) (a) Includes 81 lots in Section 600 expected to be completed in November 2025, 59 lots in Section 500 expected to be completed in January 2026 and 358 lots on approximately 70.82 acres of land expected to be completed in the second quarter of 2026. See "THE DISTRICT —Land Use." (b) Based on 3.5 persons per occupied single-family residence. Development in the District began in 2017. With the consent of the District, the Developers have financed the design and construction of underground utility and road facilities to serve approximately 238.64 acres developed as 1,067 single-family residential lots. The District is being developed as a single-family residential development known as Southern Pointe Community. Amenities constructed in the District include walking trails and ponds on approximately 60.07 acres. As of November 1, 2025, the District contained 752 single-family homes completed and occupied, 66 vacant single-family homes (including 6 model homes), 50 single-family homes under construction, and 199 completed lots available for home construction. 22 The Developers are currently developing approximately 16.28 acres (81 single-family residential lots) with expected completion of November 2025, approximately 11.25 acres (59 single-family residential lots) with expected completion date of January 2026 and approximately 70.82 acres (358 single-family residential lots) with expected completion by the second quarter of 2026. Construction of underground utilities is also underway for approximately 55.33 acres in the District, which will be developed for commercial and multi -family development. Of this area a regional real estate office has been constructed on approximately 1.96 acres and a convenience store and gas station have been constructed on approximately 2.99 acres. The remainder of the District consists of approximately 100.47 acres of developable but undeveloped land. Homebuilders Homebuilding in the District is being conducted by Stylecraft Builders, Lennar Homes, Omega Builders, Kaleo Homes, Continental Homes (a subsidiary of D.R. Horton), Ranger Home Builders, and Brightland Homes (formerly Gehan Homes). New homes in the District range in price from approximately $301,000 to $420,000. Future Development Approximately 171.29 acres of land in the District are not yet fully served with water, sanitary sewer and drainage and storm sewer facilities or roads necessary for the construction of taxable improvements (including approximately 98.35 acres for which utility construction is underway). While the Developers anticipate future development of this acreage as business conditions warrant, there can be no assurances if and when any of such undeveloped land will ultimately be developed. The District anticipates issuing additional bonds to accomplish full development of the District. See "RISK FACTORS —Possible Impact on District Tax Rates." The Engineer has stated that under current development plans, the remaining authorized but unissued bonds ($85,970,000 principal amount for roads and $215,505,000 principal amount for water, sanitary sewer, drainage and storm sewer facilities) should be sufficient to finance the construction of water, sanitary sewer, drainage and storm sewer facilities and roads for full development of the District. See "THE SYSTEM" and "THE ROAD SYSTEM." MANAGEMENT Board of Directors The District is governed by the Board of Directors, consisting of five directors, which has control over and management supervision of all affairs of the District. Each of the five current Directors owns land and/or resides in the District. Directors are elected by the voters within the District for four-year staggered terms. Director elections are held only in even numbered years. The Directors and Officers of the District are listed below: Name District Board Title Term Expires Robert "Hunter" Goodwin President May 2028 Charles Moreau Vice President May 2026 Lawrence B. Hodges Jr. Secretary May 2028 Kyle Davis Assistant Secretary May 2028 Brian G. Fisher Assistant Vice President May 2026 While the District does not employ any full-time employees, it has contracted for certain services as follows: Tax Assessor/Collector Land and improvements within the District are appraised for ad valorem taxation purposes by the Brazos Central Appraisal District. The District's Tax Assessor/Collector is engaged by the Board of Directors of the District. B&A Municipal Tax Service, LLC is currently serving in this capacity for the District. Bookkeeper The District has engaged Municipal Accounts & Consulting, L.P. to serve as the District's bookkeeper. System Operator The City operates the District's water and sanitary sewer system pursuant to a utility agreement dated May 31, 2016, 23 and amended on December 2, 2016. See "UTILITY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF COLLEGE STATION." Engineer The consulting engineer for the District in connection with the design and construction of the District's facilities is Pape -Dawson Engineers, Inc. (the "Engineer"). Attorney The District has engaged Allen Boone Humphries Robinson LLP as general counsel and as Bond Counsel in connection with the issuance of the Bonds. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds are based on a percentage of the Bonds actually issued, sold and delivered and, therefore, such fees are contingent on the sale and delivery of the Bonds. The legal fees paid to Allen Boone Humphries Robinson LLP in its capacity as General Counsel are based on time charges actually incurred. Financial Advisor Post Oak Municipal Advisors LLC (the "Financial Advisor") serves as financial advisor to the District. The fee to be paid the Financial Advisor is contingent upon sale and delivery of the Bonds. Disclosure Counsel McCall, Parkhurst & Horton L.L.P., Houston, Texas, ("Disclosure Counsel") serves as Disclosure Counsel to the District. The fee to be paid Disclosure Counsel for services rendered in connection with the issuance of the Bonds is contingent on the issuance, sale and delivery of the Bonds. Auditor As required by the Texas Water Code, the District retains an independent auditor to audit the District's financial statements annually, which audited financial statements are filed with the Commission. The District's financial statements for the fiscal year ended November 30, 2024, have been audited by McGrath & Co., PLLC. See "APPENDIX A" for a copy of the District's November 30, 2024, audited financial statements. UTLILTY AGREEMENT BETWEEN THE DISTRICT AND THE CITY OF COLLEGE STATION The District operates pursuant to a Utility Agreement between the City and the District, dated as of May 31, 2016, and amended on December 2, 2016 (the "Utility Agreement"). Pursuant to the Utility Agreement, the District assumed responsibility for acquiring and constructing for the benefit of, and for the ultimate conveyance to, the City, the water distribution, wastewater collection and storm water facilities to serve development occurring within the boundaries of the District (the "Facilities"); the City agreed to accept the Facilities for operation and maintenance at the sole cost of the City in consideration for the District's financing, acquisition and construction of the Facilities. In order to secure performance by the City of its obligations under the Utility Agreement, the District retains a security interest in the Facilities transferred to the City until the District's bonds issued to acquire and construct the Facilities are paid off. It is the City's obligation to set rates and charges for the use of the Facilities and to bill and collect such rates and charges from customers of the Facilities. The City may levy a surcharge of up to 50% of the then -current water and wastewater rates to each customer in the District to recover capital costs of providing such services. Other than the surcharges, the City agrees to charge residents of the District equal and uniform water and wastewater rates as those users of similar classifications in non -municipal utility district areas of the City. All revenues from the Facilities belong exclusively to the City. The Utility Agreement provides that the Facilities shall be designed and constructed in accordance with the City's requirements and criteria. The City agrees to provide the District with its ultimate requirements for water supply capacity and wastewater treatment capacity without capital charges of any kind (other than rate surcharges discussed above). The City has covenanted to maintain the Facilities, or cause the Facilities to be maintained, in good condition and working order and to operate the same, or cause the same, to be operated in an efficient and economical manner at a reasonable cost and in accordance with sound business principles. The City has also covenanted to comply with all contractual provisions and agreements entered into by it and with all valid rules, regulations, directions or orders by any 24 governmental or judicial body promulgating the same. Under the Utility Agreement, the District is authorized to issue bonds to finance the construction and acquisition of the Facilities. The Bonds must be approved by the City to the extent that such issuance complies with the City's policy related to municipal utility districts. The City's right to dissolve the District is restricted under the Utility Agreement and the Strategic Partnership Agreement (see "THE BONDS —Annexation by the City: Strategic Partnership Agreement"). Under the terms of the Utility Agreement, the City agrees that it will not dissolve the District until ninety percent of the District's Facilities have been developed and the developer advancing funds to construct the Facilities have been reimbursed to the maximum extent permitted by the rules of the TCEQ or the City assumes any obligation for such reimbursement of the District under such rules. THE DEVELOPERS AND MAJOR LANDOWNER Role of a Developer In general, the activities of a landowner or developer in a district such as the District include designing the project, defining a marketing program and setting building schedules; securing necessary governmental approvals and permits for development; arranging for the construction of roads and the installation of utilities; and selling or leasing improved tracts or commercial reserves to other developer or third parties. A developer is under no obligation to a district to undertake development activities according to any particular plan or schedule. Furthermore, there is no restriction on a developer's right to sell any or all of the land which the developer owns within a district. In addition, the developer is ordinarily the major taxpayer within the district during the early stages of development. The relative success or failure of a developer to perform in the above -described capacities may affect the ability of a district to collect sufficient taxes to pay debt service and retire bonds. Prospective purchasers of the Bonds should note that the prior real estate experience of the Developer should not be construed as an indication that further development within the District will occur, or that construction of taxable improvements upon property within the District will occur, or that marketing or leasing of taxable improvements constructed upon property within the District will be successful. Circumstances surrounding development within the District may differ from circumstances surrounding development of other land in several respects, including the existence of different economic conditions, financial arrangements, homebuilders, geographic location, market conditions, and regulatory climate. No representation is made as to the relative success of any of the projects mentioned above, and no assurance as to the future performance of the Developer should be inferred. Prospective purchasers are urged to inspect the District in order to acquaint themselves with the nature of the Developer's business activities. The Developers and the Major Landowner BV Southern Pointe Development, Inc., a Texas corporation ("BVSoPo" or the "Developer"), was formed for the purpose of developing single-family residential land in the District and currently owns approximately 181.91 acres in Southern Pointe. Lennar Homes of Texas Land and Construction, Ltd. d/b/a Friendswood Development Company (the "Developer" or "Lennar") has purchased approximately 93.5 acres of land sold by BVSoPo. Lennar is under contract to BVSoPo to develop approximately 119.73 additional acres within the District. Phillips 3 Land Holdings LLC ("Phillips" or the "Major Landowner") was formed for the purpose of owning all land in the District for future development. Phillips currently owns approximately 21.80 acres in the District. BVSoPo and the Major Landowner are related entities through associated ownership. THE ROAD SYSTEM All roadways are designed and constructed in accordance with the City and Brazos County standards, rules, and regulations. Upon acceptance by Brazos County, the District is responsible for operation and maintenance costs through an interlocal agreement until such time as the District is annexed by the City. 25 These roads lie within the public right-of-way. In addition to the roadway, public utilities such as underground water, sewer and drainage facilities are located within the right-of-way. The right-of-way is also shared by streetlights, sidewalks, and franchise utilities (including power, gas, telephone, fiber, and cable). THE SYSTEM Water Sunnly Water supply for the District is provided by the City pursuant to the Utility Agreement. Pursuant to the Utility Agreement, as amended, the City provides the District with sufficient capacity to serve the ultimate development of the District. The District has constructed an off -site water line to the City's water supply system. The District has no emergency interconnects. The City provides capacity for the District's water supply and their facilities have sufficient capacity to serve the ultimate development of the District. Wastewater Treatment Wastewater treatment for the District is provided by the City pursuant to the Utility Agreement. Pursuant to the Utility Agreement, as amended, the City's plant capacity of 3.04 million gallons per day (MGD) provides the District with sufficient capacity to serve the ultimate development of the District. The District has also constructed an off -site sewer line to the City's plant. The City provides capacity for the District's wastewater treatment and their facilities have sufficient capacity to serve the ultimate development of the District. Storm Water Drainage Storm water drainage for the District is collected by a storm sewer system. The system drains into a detention pond ultimately discharging to Peach Creek. [Remainder of Page Left Intentionally Blank] 26 USE AND DISTRIBUTION OF BOND PROCEEDS The estimated use and distribution of Bond proceeds is shown below. Of proceeds to be received from sale of the Bonds, $5,650,952 is estimated for construction costs and land acquisition costs, $1,296,724 is estimated for non - construction costs, (including developer interest and capitalized interest) and $427,324 is estimated for issuance costs and fees. L CONSTRUCTION COSTS 1) Sourthern Pointe Section 100$ 996,855 2) Southern Pointe SH 6 Entrance. 141,005 3) Southern Pointe Section 200 18,550 4) Southern Pointe Section 101.. 140,160 5) Southern Pointe Sections 104 & 120 676,337 6) Southem Pointe Sections 102 19,988 7) Southern Pointe Section 201 12,770 8) Southern Pointe Sections 103 & 119 40,381 9) Southern Pointe Section 400 10,939 10) Southern Pointe Section 111 (Southern Pointe & Mather Parkway).. 2,188,260 12) Southern Pointe Section 106... 450,017 ■ 11) Land Cost.. 556,307 13) Engineering is 10.00% of Items 1-11.. 399,383 Total Construction Cost $ 5,650,952 IL NON -CONSTRUCTION COSTS • Capitalized Interest (12 months at 5.00%) (a) ........ $ 368,750 • Developer Interest 692,804 • Bond Discount (3.00%) (a) .. 221,250 • Operating Advances................................................................. 13,920 Total Non -Construction Costs.. $ 1,296,724 i L ISSUANCE COSTS AND FEES • Legal Fees.. $ 187,500 • Fiscal Agent Fees.. 147,500 • Attomey General Fee (0.10% of BIR or $9,500).. 7,375 • Bond Issuance Costs.. 49,949 • Engineering Fees.. 35,000 Total Issuance Cost and Fees $ 427,324 TOTAL BOND ISSUE $ 7,375,000 (a) In the event approved estimated amounts exceed actual costs, the difference comprises a surplus which may be expended for authorized purposes. Future Debt The Developers and Major Landowner have financed the cost of creation of the District and the land, engineering and construction costs of underground utilities and roads to serve the District, as well as certain other District improvements. After reimbursement from proceeds of the Bonds, the Developers will have expended approximately $33,840,000 for design, construction and acquisition of water, sanitary sewer, and drainage facilities and roadways not yet reimbursed. It is anticipated that proceeds from future issues of District bonds will be used, in part, to reimburse the Developers for these costs to the extent allowed by the Commission. The District contains approximately 171.29 acres of developable land not presently served with water distribution, wastewater collection and storm drainage facilities or roads (including approximately 98.35 acres for which utility construction is underway). It is anticipated that additional bonds will be issued to finance the construction of these facilities to serve this undeveloped acreage. The District can make no representation that any additional development will occur within the District. The Engineer has stated that the District's authorized but unissued bonds will be adequate, under present land use projections, to finance such improvements. 27 Date of Authorization 11/5/2019 11/5/2019 UNLIMITED TAX BONDS AUTHORIZED BUT UNISSUED Amount Purpose Authorized Water, Sanitary Sewer, Drainage and Storm Sewer Systems, & Refunding (a) Includes the Bonds. Roads & Refunding Bonds Issued Amount to Date Unissued $235,600,000 $20,095,000 $215,505,000 $104,060,000 $18,090,000 (a) $85,970,000 FINANCIAL STATEMENT (UNAUDITED) 2025 Certified Taxable Assessed Valuation. Estimated Taxable Assessed Valuation as of August 1, 2025 $233,987,145 (a) $312,670,759 (b) District Debt: Outstanding Bonds (as ofNovember 1, 2025).. $30,145,000 TheBonds... ...... ...... ...... ...... ............ ...... ...... ...... ...... ...... ...... ...... ...... 7,375,000 Gross Debt Outstanding (after issuance of the Bonds). $37,520,000 Ratio of Gross Debt to 2025 Certified Taxable Assessed Valuation....................................................... 16.04% Ratio of Gross Debt to Estimated Taxable Assessed Valuation as of August 1, 2025. ............................... 12.00% Area of District: 553 acres Estimated 2025 Population: 2,632 (c) (a) (b) (c) As certified by the Brazos Central Appraisal District (the "Appraisal District"). See "TAX PROCEDURES." Provided by the Appraisal District for information purposes only. Such amount reflects the estimated value of taxable improvements on August 1, 2025. Taxes are levied based on value as certified by the Appraisal District as ofJanuary 1 of each year. No tax will be levied on such amount until it is certified. Increases in value occurring between January 1, 2025, and January 1, 2026, will be certified as ofJanuary 1, 2026. See "TAX PROCEDURES." Based on 3.5 persons per occupied single-family residence. Cash and Investment Balances (unaudited as of November 7, 2025) Operating Fund Road Escrow Fund Road Debt Service Fund WS&D Debt Service Fund Road Capital Projects Fund WS&D Capital Projects Fund Cash and Temporary Investments Cash and Temporary Investments Cash and Temporary Investments Cash and Temporary Investments Cash and Temporary Investments Cash and Temporary Investments $521,678 $58,458 (a) $399,653 (b) (c) $956,853 (b) $32,029 $0 (a) The District maintains funds in the Road Escrow Fund for maintenance of public roads in accordance with its agreement with Brazos County. The District has levied a road maintenance tax for 2025. Those funds will be deposited into the Road Escrow Fund. (b) Neither Texas law nor the Bond Resolution requires the District to maintain any minimum balance in the Debt Service Fund. Although all of the District's debt, including the Outstanding Bonds and the Bonds, is payable from an unlimited tax pledge on parity, a pro rata portion of the District's ad valorem tax revenue will be allocated to bonds sold for road facilities, including the Bonds (the "Road Bonds"), and a portion will be allocated to bonds sold for water, sanitary sewer, drainage and storm sewer facilities (the "Water, Sewer and Drainage Bonds"). See "FINANCIAL STATEMENT (UNAUDITED) —Outstanding Bonds." The Road Debt Service Fund is not pledged to the Water, Sewer and Drainage Bonds and the Water, Sewer and Drainage Debt Service Fund is not pledged to the Road Bonds. (c) Accrued interest and twelve (12) months of capitalized interest on the Bonds will be deposited to the Road Debt Service Fund. See "USE AND DISTRIBUTION OF BOND PROCEEDS." Neither Texas law nor the Bond Resolution requires the District to maintain any minimum balance in the Debt Service Fund. 28 Outstanding Bonds Original Principal Amount Principal Outstanding as of Series Amount September 30, 2025 2020 (a) $ 2,000,000 $ 1,775,000 2022 1,590,000 1,465,000 2023 4,005,000 3,855,000 2024 (a) 8,715,000 8,550,000 2025 14,500,000 14,500,000 $ 30,145,000 (a) Unlimited Tax Road Bonds. Investments of the District The District has adopted an Investment Policy as required by the Public Funds Investment Act, Chapter 2256, Texas Government Code. The District's goal is to preserve principal and maintain liquidity while securing a competitive yield on its portfolio. Funds of the District will be invested in short term U.S. Treasuries, certificates of deposit insured by the Federal Deposit Insurance Corporation ("FDIC") or secured by collateral evidenced by perfected safekeeping receipts held by a third party bank, and public funds investment pools rated in the highest rating category by a nationally recognized rating service. The District does not currently own, nor does it anticipate, the inclusion of long term securities or derivative products in the District portfolio. ESTIMATED OVERLAPPING DEBT STATEMENT Expenditures of the various taxing entities within the territory of the District are paid out of ad valorem taxes levied by such entities on properties within the District. Such entities are independent of the District and may incur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valorem tax bonds ("Tax Debt") was developed from information contained in the "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating to the District, the District has not independently verified the accuracy or completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may have issued additional bonds since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of additional bonds, the amount of which cannot be determined. The following table reflects the estimated share of the overlapping Tax Debt of the District. Taxing Outstanding Overlapping Jurisdiction Bonds As of Percent Amount Brazos County. $81,235,000 10/31/2025 0.60% $487,410 College Station ISD................................ 511,895,000 10/31/2025 1.14% 5,835,603 Total Estimated Overlapping Debt $6,323,013 $37,520,000 (a) Current 100.00% 37,520,000 Total Direct and Estimated Overlapping Debt............ ...... ................................ ....... ............... ...... $43,843,013 Ratios of Total Direct and Estimated Overlapping Debt to: 2025 Certified Taxable Assessed Valuation................................................................................... Estimated Taxable Assessed Valuation as ofAugust 1, 2025............................................................ (a) Includes the Bonds. 18.74% 14.02% 29 Overlapping Tax Rates for 2025 Brazos County. Brazos County Emergency Service District No. 1..... College Station ISD............................................... Total Overlapping Tax Rate.................................. ......... TAX DATA Tax Rate Limitations 2025 Tax Rate per $100 of Taxable Assessed Valuation $ 0.419700 0.072375 0.975300 $ 1.467375 1.000000 $ 2.467375 Debt Service: Unlimited (no legal limit as to rate or amount). Maintenance and Operations: $1.00 per $100 of taxable assessed valuation. Maintenance and Operations for Roads: $0.25 per $100 of taxable assessed valuation. Debt Service Tax The Board covenants in the Bond Resolution to levy and assess, for each year that all or any part of the Bonds remain outstanding and unpaid, a tax adequate to provide funds to pay the principal of and interest on the Bonds. The District levied a total debt service tax for 2025 in the amount of $0.820 per $100 of taxable assessed valuation. See "Tax Rate Distribution" herein. Maintenance and Operation Tax The Board of Directors of the District has the statutory authority to levy and collect an annual ad valorem tax for maintenance of the District's improvements, if such maintenance tax is authorized by vote of the District's electors. Pursuant to an election held in 2015, the Board was authorized to levy such a maintenance and operation tax in an amount not to exceed $1.00 per $100 of taxable assessed valuation. In addition, at an election held in 2015, the Board was authorized to levy a maintenance and operations tax for roads in an amount not to exceed $0.25 per $100 of taxable assessed valuation. Such tax is in addition to taxes which the District is authorized to levy for paying principal and interest on the District's bonds. The District levied a maintenance and operation tax for 2025 in the amount of $0.16 per $100 of taxable assessed valuation. The District has also levied a road maintenance tax for 2025 in the amount of $0.02 per $100 of taxable assessed valuation. Tax Collections The following statement of tax collections sets forth in condensed form the historical tax collection experience of the District. This summary has been prepared for inclusion herein, based upon information from the District's Tax Assessor/Collector. Reference is made to these records for further and more complete information. Tax Year 2021 2022 2023 2024 2025 Net Certified Taxable Valuation (a) $ 35,019,506 63,761,192 126,472,671 178,556,635 233,987,145 Tax Rate $1.00 1.00 1.00 1.00 1.00 Adjusted Tax Levy (b) $ 350,195 637,612 1,264,716 1,785,566 2,339,871 Total Collections As of October 31, 2025 Amount Percent $ 350,195 100.00% 637,376 99.96% 1,264,480 99.98% 1,774,765 99.40% (In Process of Collection) (c) (a) Net valuation represents final gross appraised value as certified by the Appraisal District less any exemptions granted. See "Tax Roll Information" below for gross appraised value and exemptions granted by the District. Represents actual tax levy, including any adjustments by the Appraisal District, as of September 30, 2025. In the process of collection. Taxes for 2025 are due January 31, 2026. (b) (c) 30 Taxes are due when billed and become delinquent if not paid before February 1 of the year following the year in which imposed. No split payments are allowed and no discounts are allowed. Tax Rate Distribution Road Debt Service WS&D Debt Service Maintenance and Operations Road Maintenance Total Tax Exemptions 2025 $0.270 $0.550 $0.160 $0.020 $1.000 2024 $0.520 $0.230 $0.235 $0.015 $1.000 2023 $0.045 $0.355 $0.585 $0.015 $1.000 2022 2021 $0.275 $0.290 $0.095 $0.630 $0.710 $1.000 $1.000 As discussed in the section titled "TAX PROCEDURES" herein, certain property in the District may be exempt from taxation by the District. The District does not exempt any percentage of the market value of any residential homesteads from taxation. The Developers have executed a Waiver of Special Appraisal, waiving its right to claim any agriculture or open space exemptions or any other type of exemption or valuation for the property it owns within the District that would reduce the assessed value of such land below its market value for purposes of ad valorem taxation by the District. Such waiver is binding for periods of thirty years. Additional Penalties The District has contracted with a delinquent tax attorney to collect certain delinquent taxes. In connection with that contract, the District established an additional penalty of twenty percent (20%) of the tax to defray the costs of collection. This 20% penalty applies to taxes that either: (1) become delinquent on or after February 1 of a year, but not later than May 1 of that year, and that remain delinquent on April 1 (for personal property) and July 1 (for real property) of the year in which they become delinquent or (2) become delinquent on or after June 1, pursuant to Title 1 of the Texas Tax Code. Principal Taxpayers The following list of principal taxpayers was provided by the District's Tax Assessor/Collector based upon the 2025 certified tax rolls, which reflect ownership at January 1, 2025. Accurate principal taxpayer lists related to the Estimated Taxable Assessed Valuation as of August 1, 2025, are not available. Taxpayer Continental Homes of Texas LP (a) BV Southern Pointe Development Inc. (b) Phillips 3 Land Holdings, LLC (b) Stylecraft Builders Inc. (a) BCS Ranger Home Builders LLC (a) Brightland Homes LTD (a) Kaleo Builder Group LP (a) 1876 Investments LLC First Omega Partners LTD (a) Eire LLC Total for Principal Taxpayers 2025 Certified Assessed Type of Property Valuation Land & Improvements $ 7,512,131 Land 3,489,166 Land & Improvements 3,400,000 Land 3,095,990 Land & Improvements 2,487,527 Land 2,226,220 Land 1,254,283 Residential 1,019,426 Land & Improvements 1,012,632 Land & Improvements 823,767 $ 26,321,142 (a) See "THE DISTRICT-Homebuilders." (b) See "THE DEVELOPERS AND MAJOR LANDOWNER -The Developers and Major Landowner." % of 2025 Certified Assessed Valuation 3.38% 1.57% 1.53% 1.39% 1.12% 1.00% 0.56% 0.46% 0.46% 0.37% 11.85% 31 Summary of Assessed Valuation The following summary of the 2025 certified assessed valuation is provided by the District's Tax Assessor/Collector based on information contained in the 202 tax rolls of the District. Information in this summary may differ slightly from the assessed valuations shown herein due to differences in dates of data. A breakdown of the Estimated Taxable Assessed Valuation as of August 1, 2025, is not available from the Appraisal District. 2025 2024 2023 2022 2021 Land $64,988,856 $47,485,759 $39,029,995 $20,779,758 $15,672,564 Improvements 181,215,053 136,915,089 91,218,633 43,912,475 19,587,478 Personal Property 378,834 216,669 112,464 92,689 51,668 Exempt Property (12,595,598) (6,060,882) (3,888,421) (1,023,730) (292,204) Total Assessed Valuation $233,987,145 $178,556,635 $126,472,671 $63,761,192 $35,019,506 Tax Adequacy for Debt Service The calculations showing the tax rates necessary to pay the District's projected average and projected maximum annual debt service requirements on the Bonds and the Outstanding Bonds as shown below assume, solely for purposes of illustration, no increase or decrease in assessed valuation over the 2025 Taxable Assessed Valuation or the Estimated Taxable Assessed Valuation as of August 1, 2025, collection of ninety-five percent (95%) of taxes levied, the sale of no additional bonds, and no other funds available for the payment of debt service. See "DEBT SERVICE REQUIREMENTS" and "RISK FACTORS —Impact on District Tax Rates." Projected Average Annual Debt Service Requirement (2026-2051)............................................ $2,449,334 $1.11 tax rate on the 2025 Certified Taxable Assessed Valuation of $233,987,145 at a 95% collection rate produces............................................................... $2,467,394 $0.83 taxrate on the Estimated Taxable Assessed Valuation as of August 1, 2025 of $312,670,759 at a 95% collection rate produces............................................................... $2,465,409 Projected Maximum Annual Debt Service Requirement(2046).................................................. $2,584,185 $1.17 tax rate on the 2025 Certified Taxable Assessed Valuation of $233,987,145 at a 95% collection rate produces............................................................... $2,600,767 $0.87 taxrate on the Estimated Taxable Assessed Valuation as of August 1, 2025 of $312,670,759 at a 95% collection rate produces............................................................... $2,584,224 [Remainder of Page Left Intentionally Blank] 32 TAX PROCEDURES Authority to Levy Taxes The Board is authorized to levy an annual ad valorem tax, without legal limitation as to rate or amount, on all taxable property within the District in an amount sufficient to pay the principal of and interest on the Bonds, the Outstanding Bonds, and any additional bonds payable from taxes which the District may hereafter issue (see "USE AND DISTRIBUTION OF BOND PROCEEDS —Future Debt") and to pay the expenses of assessing and collecting such taxes. The District agrees in the Bond Resolution to levy such a tax from year to year as described more fully herein under "THE BONDS —Source of and Security for Payment." Under Texas law, the Board may also levy and collect an annual ad valorem tax for the operation and maintenance of the District and for the payment of certain contractual obligations. See "TAX DATA." Property Tax Code and County -Wide Appraisal District Title 1 of the Texas Tax Code (the "Property Tax Code") specifies the taxing procedures of all political subdivisions of the State of Texas, including the District. Provisions of the Property Tax Code are complex and are not fully summarized here. The Property Tax Code requires, among other matters, county -wide appraisal and equalization of taxable property values and establishes in each county of the State of Texas an appraisal district with the responsibility for recording and appraising property for all taxing units within a county and an appraisal review board with responsibility for reviewing and equalizing the values established by the appraisal district. The Brazos Central Appraisal District (the "Appraisal District") has the responsibility for appraising property for all taxing units within Brazos County, including the District. Such appraisal values are subject to review and change by the Brazos Central Appraisal Review Board (the "Appraisal Review Board"). Property Subiect to Taxation by the District Except for certain exemptions provided by Texas law, all real property, tangible personal property held or used for the production of income, mobile homes and certain categories of intangible personal property with a tax situs in the District are subject to taxation by the District. Principal categories of exempt property include, but are not limited to: property owned by the State of Texas or its political subdivisions if the property is used for public purposes; property exempt from ad valorem taxation by federal law; certain household goods, family supplies, and personal effects; certain goods, wares and merchandise in transit; farm products owned by the producer; certain property of charitable organizations, youth development associations, religious organizations, and qualified schools; designated historical sites; travel trailers; and most individually owned automobiles. In addition, the District may by its own action exempt residential homesteads of persons sixty-five (65) years or older and of certain disabled persons to the extent deemed advisable by the Board. The District may be required to offer such an exemption if a majority of voters approve it at an election. The District would be required to call such an election upon petition by twenty percent (20%) of the number of qualified voters who voted in the preceding election. The District is authorized by statute to disregard exemptions for the disabled and elderly if granting the exemption would impair the District's obligation to pay tax supported debt incurred prior to adoption of the exemption by the District. Furthermore, the District must grant exemptions to disabled veterans or certain surviving dependents of disabled veterans, if requested, of between $5,000 and $12,000 depending on the disability rating of the veteran. A veteran who receives a disability rating of 100% is entitled to an exemption for the full amount of the veteran's residence homestead. Additionally, subject to certain conditions, the surviving spouse of a disabled veteran who is entitled to an exemption for the full value of the veteran's residence homestead is also entitled to an exemption from taxation of the total appraised value of the same property to which the disabled veteran's exemption applied. A partially disabled veteran or certain surviving spouses of partially disabled veterans are entitled to an exemption from taxation of a percentage of the appraised value of their residence homestead in an amount equal to the partially disabled veteran's disability rating if the residence homestead was donated by a charitable organization. Also, the surviving spouse of a member of the armed forces who was killed or fatally injured in the line of duty, subject to certain conditions, entitled to an exemption of the total appraised value of the surviving spouse's residence homestead, and subject to certain conditions, an exemption up to the same amount may be transferred to a subsequent residence homestead spouse. The surviving spouse of a first responder who was killed or fatally injured in the line of duty is, subject to certain conditions, also entitled to an exemption of the total appraised value of the surviving spouse's residence homestead, 33 and, subject to certain conditions, an exemption up to the same amount may be transferred to a subsequent residence homestead of the surviving spouse. See "TAX DATA." Residential Homestead Exemptions: The Property Tax Code authorizes the governing body of each political subdivision in the State of Texas to exempt up to twenty percent (20%) (not less than $5,000) of the appraised value of residential homesteads from ad valorem taxation. Where ad valorem taxes have previously been pledged for the payment of debt, the governing body of a political subdivision may continue to levy and collect taxes against the exempt value of the homesteads until the debt is discharged, if the cessation of the levy would impair the obligations of the contract by which the debt was created. The adoption of a homestead exemption may be considered each year, but must be adopted before July 1. Freeport Goods and Goods -in -Transit Exemptions: A "Freeport Exemption" applies to goods, wares, ores, and merchandise other than oil, gas, and petroleum products (defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas), and to aircraft or repair parts used by a certified air carrier acquired in or imported into Texas which are destined to be forwarded outside of Texas and which are detained in Texas for assembling, storing, manufacturing, processing or fabricating for less than 175 days. Although certain taxing units may take official action to tax such property in transit and negate such exemption, the District does not have such an option. A "Goods -in -Transit" Exemption is applicable to the same categories of tangible personal property which are covered by the Freeport Exemption, if, for tax year 2011 and prior applicable years, such property is acquired in or imported into Texas for assembling, storing, manufacturing, processing, or fabricating purposes and is subsequently forwarded to another location inside or outside of Texas not later than 175 days after acquisition or importation, and the location where said property is detained during that period is not directly or indirectly owned or under the control of the property owner. For tax year 2012 and subsequent years, such Goods -in -Transit Exemption includes tangible personal property acquired in or imported into Texas for storage purposes only if such property is stored under a contract of bailment by a public warehouse operator at one or more public warehouse facilities in Texas that are not in any way owned or controlled by the owner of such property for the account of the person who acquired or imported such property. A property owner who receives the Goods -in -Transit Exemption is not eligible to receive the Freeport Exemption for the same property. Local taxing units such as the District may, by official action and after public hearing, tax goods -in -transit personal property. A taxing unit must exercise its option to tax goods -in- transit property before January 1 of the first tax year in which it proposes to tax the property at the time and in the manner prescribed by applicable law. The District has taken official action to allow taxation of all such goods -in -transit personal property for all prior and subsequent years. Tax Abatement Brazos County or the City of College Station may designate all or part of the area within the District as a reinvestment zone. Thereafter, Brazos County, the District, and the City of College Station (if it were to annex the District), under certain circumstances, may enter into tax abatement agreements with owners of property within the zone. Prior to entering into a tax abatement agreement, each entity must adopt guidelines and criteria for establishing tax abatement, which each entity will follow in granting tax abatement to owners of property. The tax abatement agreements may exempt from ad valorem taxation by each of the applicable taxing jurisdictions, including the District, for a period of up to ten (10) years, all or any part of any increase in the assessed valuation of property covered by the agreement over its assessed valuation in the year in which the agreement is executed on the condition that the property owner make specified improvements or repairs to the property in conformity with the terms of the tax abatement. Each taxing jurisdiction has discretion to determine terms for its tax abatement agreements without regard to the terms approved by the other taxing jurisdictions. Valuation of Pronertv for Taxation Generally, property in the District must be appraised by the Appraisal District at market value as of January 1 of each year. Once an appraisal roll is prepared and finally approved by the Appraisal Review Board, it is used by the District in establishing its tax rolls and tax rate. Generally, assessments under the Property Tax Code are to be based on one hundred percent (100%) of market value, as such is defined in the Property Tax Code. In determining market value, either the replacement cost or the income or the market data method of valuation may be used, whichever is appropriate. Nevertheless, certain land may be appraised at less than market value under the Property Tax Code. Increases in the appraised value of residence homesteads are limited by the Texas Constitution to 10 percent annually regardless of the market value of the property. 34 The Property Tax Code permits land designated for agricultural use, open space, or timberland to be appraised at its value based on the land's capacity to produce agricultural or timber products rather than at its market value. The Property Tax Code permits under certain circumstances that residential real property inventory held by a person in the trade or business be valued at the price all such property would bring if sold as a unit to a purchaser who would continue the business. Provisions of the Property Tax Code are complex and are not fully summarized here. Landowners wishing to avail themselves of the agricultural use, open space, or timberland designation or residential real property inventory designation must apply for the designation and the appraiser is required by the Property Tax Code to act on each claimant's right to the designation individually. A claimant may waive the special valuation as to taxation by some political subdivisions while claiming it as to another. If a claimant receives the agricultural use designation and later loses it by changing the use of the property or selling it to an unqualified owner, the District can collect taxes based on the new use, including taxes for the previous three (3) years for agricultural use, open space land and timberland. Reappraisal of Property after Disaster The Property Tax Code provides for a temporary exemption from ad valorem taxation of a portion of the appraised value of certain property that is at least 15% damaged by a disaster and located within an area declared to be a disaster area by the governor of the State of Texas. This temporary exemption is automatic if the disaster is declared prior to a taxing unit, such as the District, adopting its tax rate for the tax year. A taxing unit, such as the District, may authorize the exemption at its discretion if the disaster is declared after the taxing unit has adopted its tax rate for the tax year. The amount of the exemption is based on the percentage of damage and is prorated based on the date of the disaster. Upon receipt of an application submitted within the eligible timeframe by a person who qualifies for a temporary exemption under the Property Tax Code, the Appraisal District is required to complete a damage assessment and assign a damage assessment rating to determine the amount of the exemption. The temporary exemption amounts established in the Property Tax Code range from 15% for property less than 30% damaged to 100% for property that is a total loss. Any such temporary exemption granted for disaster -damaged property expires on January 1 of the first year in which the property is reappraised. District and Taxpayer Remedies Under certain circumstances taxpayers and taxing units (such as the District) may appeal the orders of the Appraisal Review Board by filing a timely petition for review in State district court. In such event, the value of the property in question will be determined by the court or by a jury if requested by any party. Additionally, taxing units may bring suit against the Appraisal District to compel compliance with the Property Tax Code. The Property Tax Code also establishes a procedure for notice to property owners of reappraisals reflecting increased property value, appraisals which are higher than renditions, and appraisals of property not previously on an appraisal roll. Levy and Collection of Taxes The District is responsible for the levy and collection of its taxes unless it elects to transfer such functions to another governmental entity. The rate of taxation is set by the Board of Directors, after the legally required notice has been given to owners of property within the District, based upon: a) the valuation of property within the District as of the preceding January 1, and b) the amount required to be raised for debt service, maintenance purposes, and authorized contractual obligations. Taxes are due October 1, or when billed, whichever comes later, and become delinquent if not paid before February 1 of the year following the year in which imposed. A delinquent tax incurs a penalty of six percent (6%) of the amount of the tax for the first calendar month it is delinquent, plus one percent (1%) for each additional month or portion of a month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. If the tax is not paid by July 1 of the year in which it becomes delinquent, the tax incurs a total penalty of twelve percent (12%) regardless of the number of months the tax has been delinquent and incurs an additional penalty for collection costs of an amount established by the District and a delinquent tax attorney. A delinquent tax on personal property incurs an additional penalty, in an amount established by the District and a delinquent tax attorney, 60 days after the date the taxes become delinquent. The delinquent tax accrues interest at a rate of one percent (1%) for each month or portion of a month it remains unpaid. The Property Tax Code makes provisions for the split payment of taxes, discounts for early payment and the postponement of the delinquency date of taxes under certain circumstances which, at the option of the District, which may be rejected by taxing units. The District's tax collector is required to enter into an installment payment agreement with any person who is delinquent on the payment of tax on a residence homestead for payment of tax, penalties and interest, if the person requests an installment agreement and has not entered into an installment agreement with the collector in the preceding 24 months. The installment agreement must 35 provide for payments to be made in monthly installments and must extend for a period of at least 12 months and no more than 36 months. Additionally, the owner of a residential homestead property who is (i) sixty-five (65) years of age or older, (ii) disabled, or (iii) a disabled veteran, is entitled by law to pay current taxes on a residential homestead in installments without penalty or to defer the payment of taxes during the time of ownership. In the instance of tax deferral, a tax lien remains on the property and interest continue to accrue during the period of deferral. Rollback of Operation and Maintenance Tax Rate Chapter 49 of the Texas Water Code, as amended, classifies districts differently based on the current operation and maintenance tax rate or on the percentage of build -out that the district has completed. Districts that have adopted an operation and maintenance tax rate for the current year that is 2.5 cents or less per $100 of taxable value are classified as "Special Taxing Units." Districts that have financed, completed, and issued bonds to pay for all improvements and facilities necessary to serve at least 95% of the projected build -out of the district are classified as "Developed Districts." Districts that do not meet either of the classifications previously discussed can be classified herein as "Developing Districts." The impact each classification has on the ability of a district to increase its maintenance and operations tax rate is described for each classification below. Debt service and contract tax rates cannot be reduced by a rollback election held within any of the districts described on the following page. Special Taxing Units: Special Taxing Units that adopt a total tax rate that would impose more than 1.08 times the amount of the total tax imposed by such district in the preceding tax year on a residence homestead appraised at the average appraised value of a residence homestead, subject to certain homestead exemptions, may be required to hold an election within the district to determine whether to approve the adopted total tax rate. If the adopted total tax rate is not approved at the election, the total tax rate for a Special Taxing Unit is the current year's debt service and contract tax rate plus 1.08 times the previous year's operation and maintenance tax rate. Developed Districts: Developed Districts that adopt a total tax rate that would impose more than 1.035 times the amount of the total tax imposed by the district in the preceding tax year on a residence homestead appraised at the average appraised value of a residence homestead, subject to certain homestead exemptions for the preceding tax year, plus any unused increment rates, as calculated and described in Section 26.013 of the Tax Code, may be required to hold an election within the district to determine whether to approve the adopted total tax rate. If the adopted total tax rate is not approved at the election, the total tax rate for a Developed District is the current year's debt service and contract tax rate plus 1.035 times the previous year's operation and maintenance tax rate plus any unused increment rates. In addition, if any part of a Developed District lies within an area declared for disaster by the Governor of Texas or President of the United States, alternative procedures and rate limitations may apply for a temporary period. If a district qualifies as both a Special Taxing Unit and a Developed District, the district will be subject to the operation and maintenance tax threshold applicable to Special Taxing Units. Developing Districts: Districts that do not meet the classification of a Special Taxing Unit or a Developed District can be classified as Developing Districts. The qualified voters of these districts, upon the Developing Districts adoption of a total tax rate that would impose more than 1.08 times the amount of the total tax rate imposed by such district in the preceding tax year on a residence homestead appraised at the average appraised value of a residence homestead, subject to certain homestead exemptions, are authorized to petition for an election to reduce the operation and maintenance tax rate. If an election is called and passes, the total tax rate for Developing Districts is the current year's debt service and contract tax rate plus 1.08 times the previous year's operation and maintenance tax rate. The District: A determination as to a district's status as a Special Taxing Unit, Developed District or Developing District is made by the Board of Directors on an annual basis. For the 2025 tax year, the District was classified as a Developing District. The District cannot give any assurances as to what its classification will be at any point in time or whether the District's future tax rates will result in a total tax rate that will reclassify the District into a new classification and new election calculation. 36 District's Rights in the Event of Tax Delinquencies Taxes levied by the District are a personal obligation of the owner of the property as of January 1 of the year for which the tax is imposed. On January 1 of each year, a tax lien attaches to property to secure the payment of all state and local taxes, penalties, and interest ultimately imposed for the year on the property. The lien exists in favor of the State of Texas and each local taxing unit, including the District, having power to tax the property. The District's tax lien is on a parity with tax liens of such other taxing units. See "ESTIMATED OVERLAPPING DEBT STATEMENT — Overlapping Tax Rates for 2025." A tax lien on real property takes priority over the claim of most creditors and other holders of liens on the property encumbered by the tax lien, whether or not the debt or lien existed before the attachment of the tax lien; however, whether a lien of the United States is on a parity with or takes priority over a tax lien of the District is determined by applicable federal law. Personal property under certain circumstances is subject to seizure and sale for the payment of delinquent taxes, penalty, and interest. At any time after taxes on property become delinquent, the District may file suit to foreclose the lien securing payment of the tax, to enforce personal liability for the tax, or both subject to the restrictions on residential homesteads described above under "Levy and Collection of Taxes." In filing a suit to foreclose a tax lien on real property, the District must join other taxing units that have claims for delinquent taxes against all or part of the same property. Collection of delinquent taxes may be adversely affected by the amount of taxes owed to other taxing units, by the effects of market conditions on the foreclosure sale price, by taxpayer redemption rights or by bankruptcy proceedings which restrict the collection of taxpayer debts. A taxpayer may redeem property within six (6) months for commercial property and two (2) years for residential and all other types of property after the purchaser's deed issued at the foreclosure sale is filed in the county records or by bankruptcy proceedings which restrict the collection of taxpayer debts. The District's ability to foreclose its tax lien or collect penalties or interest on delinquent taxes may be limited on property owned by a financial institution which is under receivership by the Federal Deposit Insurance Corporation pursuant to the Federal Deposit Insurance Act, 12 U.S.C. 1825, as amended. See "RISK FACTORS —General" and "—Tax Collection Limitations," and "—Registered Owners' Remedies and Bankruptcy Limitations." Tax Payment Installments after Disaster Certain qualified taxpayers, including owners of residential homesteads, located within a designated disaster area or emergency area and whose property has been damaged as a direct result of the disaster or emergency, are entitled to enter into a tax payment installment agreement with a taxing jurisdiction, such as the District, if the taxpayer pays at least one-fourth of the tax bill imposed on the property by the delinquency date. The remaining taxes may be paid without penalty or interest in three equal installments within six months of the delinquency date. Additionally, the Property Tax Code authorizes a taxing jurisdiction such as the District, solely at the jurisdiction's discretion to adopt a similar installment payment option for taxes imposed on property that is located within a designated disaster area or emergency area and is owned or leased by certain qualified business entities, regardless of whether the property has been damaged as a direct result of the disaster or emergency. 37 GENERAL FUND Oueratine Statement The following statement sets forth in condensed form the historical results of operation of the District's General Fund. The City operates the water and sewer system that serves the District, so the District collects no net revenues from operating the system. Such summary is based upon information obtained from the District's audited financial statements for fiscal years ended November 30, 2021, 2022, 2023 and 2024 and from the District's bookkeeper for the nine -month period ended September 30, 2025. Reference is made to such records and statements for further and more complete information. Fiscal Year Ended November 30 12/1/2024 to 9/30/2025 2024 2023 2022 2021 Revenues: Property Taxes $ 444,188 $ 759,850 $ 400,930 $ 248,370 $ 132,055 Investment Eamings 22,678 31,587 16,587 726 19 Total Revenues $ 466,866 $ 791,437 $ 417,517 $ 249,096 $ 132,074 Expenditures: Operating and Administrative Professional Fees $ 360,954 $ 231,792 $ 193,658 $ 134,992 $ 191,448 Contracted Services 31,577 40,406 47,236 36,094 14,660 Repairs and Maintenance 18,564 48,825 18,359 - 5,240 Administrative 25,187 22,531 11,847 8,535 9,943 Other 2,051 2,266 5,500 12,577 1,117 Capital Outlay 1,023 124,551 54,650 - Total Expenditures $ 439,356 $ 470,371 $ 331,250 $ 192,198 $ 222,408 Excess (Deficiency) of Revenues $ 27,510 $ 321,066 $ 86,267 $ 56,898 $ (90,334) Over Expenditures Other Financing Sources (Uses) Developer Advances $ - $ $ - $ 117,000 $ 30,000 Internal Transfers $ - $ $ $ 152,286 $ 6,430 Beginning Fund Balance $ 416,936 $ 95,870 $ 9,603 $ (316,581) $ (262,677) Ending Fund Balance $ 444,446 $ 416,936 $ 95,870 $ 9,603 $ (316,581) (a) Unaudited. Provided by the District's bookkeeper. 38 DEBT SERVICE REQUIREMENTS The following table sets forth the debt service requirements for the Outstanding Bonds and estimated debt service requirements for the Bonds at an assumed interest rate of 5.00% per annum. This schedule does not reflect the fact that twelve (12) months of interest will be capitalized from Bond proceeds. Outstanding Total Calendar Debt Debt Service on the Bonds Debt Year Service Principal Interest Total Service 2026 $ 2,034,271 245,833 245,833 $ 2,280,104 2027 1,988,547 $ 155,000 $ 368,750 $ 523,750 2,512,297 2028 1,982,061 160,000 361,000 521,000 2,503,061 2029 1,973,789 170,000 353,000 523,000 2,496,789 2030 1,981,105 180,000 344,500 524,500 2,505,605 2031 1,976,221 190,000 335,500 525,500 2,501,721 2032 1,988,952 200,000 326,000 526,000 2,514,952 2033 1,994,825 205,000 316,000 521,000 2,515,825 2034 2,004,026 220,000 305,750 525,750 2,529,776 2035 2,006,329 230,000 294,750 524,750 2,531,079 2036 2,002,025 240,000 283,250 523,250 2,525,275 2037 2,010,506 250,000 271,250 521,250 2,531,756 2038 2,021,281 265,000 258,750 523,750 2,545,031 2039 2,014,206 280,000 245,500 525,500 2,539,706 2040 2,034,544 290,000 231,500 521,500 2,556,044 2041 2,031,063 305,000 217,000 522,000 2,553,063 2042 2,040,413 320,000 201,750 521,750 2,562,163 2043 2,051,150 335,000 185,750 520,750 2,571,900 2044 2,058,369 355,000 169,000 524,000 2,582,369 2045 2,062,364 370,000 151,250 521,250 2,583,614 2046 2,061,435 390,000 132,750 522,750 2,584,185 2047 1,962,344 410,000 113,250 523,250 2,485,594 2048 1,972,879 430,000 92,750 522,750 2,495,629 2049 1,964,243 450,000 71,250 521,250 2,485,493 2050 1,971,675 475,000 48,750 523,750 2,495,425 2051 500,000 25,000 525,000 525,000 Total $ 50,188,622 $ 7,375,000 $ 5,949,833 $ 13,324,833 $ 63,513,455 Projected Average Annual Debt Service Requirements (2026-2051)............................ $2,449,334 Projected Maximum Annual Debt Service Requirements (2046). $2,584,185 39 LEGAL MATTERS Legal Proceedings Delivery of the Bonds will be accompanied by the approving legal opinion of the Attorney General of Texas to the effect that the Bonds are valid and legally binding obligations of the District under the Constitution and laws of the State of Texas, payable from the proceeds of an annual ad valorem tax levied, without limit as to rate or amount, upon all taxable property within the District, and, based upon their examination of a transcript of certified proceedings relating to the issuance and sale of the Bonds, the approving legal opinion of Bond Counsel, to a like effect and to the effect that, under existing law, interest on the Bonds is excludable from gross income for federal income tax purposes and interest on the Bonds is not subject to the alternative minimum tax on individuals; however, such interest is taken into account in determining the annual adjusted financial statement income of applicable corporations (as defined in section 59(k) of the Internal Revenue Code of 1986, as amended (the "Code")) for the purpose of determining the alternative minimum tax imposed on corporations. Bond Counsel has reviewed the information appearing in this Official Statement under "THE BONDS," "THE DISTRICT —General," "UTILITY AGREEMENT BETWEEN THE DISTRCT AND THE CITY OF COLLEGE STATION," "TAX PROCEDURES," "LEGAL MATTERS," "TAX MATTERS," and "CONTINUING DISCLOSURE OF INFORMATION" solely to determine if such information, insofar as it relates to matters of law, is true and correct, and whether such information fairly summarizes the provisions of the documents referred to therein. Bond Counsel has not, however, independently verified any of the factual information contained in this Official Statement nor has it conducted an investigation of the affairs of the District for the purpose of passing upon the accuracy or completeness of this Official Statement. No person is entitled to rely upon Bond Counsel's limited participation as an assumption of responsibility for or an expression of opinion of any kind with regard to the accuracy or completeness of any information contained herein. Allen Boone Humphries Robinson LLP also serves as General Counsel to the District on matters other than the issuance of bonds. The legal fees paid to Bond Counsel for services rendered in connection with the issuance of the Bonds are based on a percentage of the bonds actually issued, sold, and delivered and, therefore, such fees are contingent upon the sale and delivery of the Bonds. The legal fees paid to Allen Boone Humphries Robinson LLP in its capacity as General Counsel are based on time charges actually incurred. McCall, Parkhurst & Horton L.L.P., Houston, Texas ("Disclosure Counsel") serves as Disclosure Counsel to the District. The fee to be paid Disclosure Counsel for services rendered in connection with the issuance of the Bonds is contingent on the issuance, sale and delivery of the Bonds. The various legal opinions to be delivered concurrently with the delivery of the Bonds express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of the expression of professional judgment, of the transaction opined upon, or of the future performance of the parties to the transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. No Material Adverse Change The obligations of the Initial Purchaser to take and pay for the Bonds, and of the District to deliver the Bonds, are subject to the condition that, up to the time of delivery of and receipt of payment for the Bonds, there shall have been no material adverse change in the condition (financial or otherwise) of the District from that set forth or contemplated in the Preliminary Official Statement, as it may be amended or supplemented through the date of sale. No -Litigation Certificate The District will furnish the Initial Purchaser a certificate, executed by both the President or Vice President and Secretary or Assistant Secretary of the Board, and dated as of the date of delivery of the Bonds, to the effect that no litigation of any nature is pending or to its knowledge threatened, either in state or federal courts, contesting or attacking the Bonds; restraining or enjoining the levy, assessment and collection of ad valorem taxes to pay the interest or the principal of the Bonds; in any manner questioning the authority or proceedings for the issuance, execution or delivery of the Bonds; or affecting the validity of the Bonds or the title of the present officers of the District. 40 TAX MATTERS The following discussion of certain federal income tax considerations is for general information only and is not tax advice. Each prospective purchaser of the Bonds should consult its own tax advisor as to the tax consequences of the acquisition, ownership and disposition of the Bonds. Tax Exemption In the opinion of Allen Boone Humphries Robinson LLP, Bond Counsel, under existing law, interest on the Bonds (i) is excludable from gross income for federal income tax purposes under section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and (ii) is not an item of tax preference for purposes of the alternative minimum tax on individuals. The Code imposes a number of requirements that must be satisfied for interest on state or local obligations, such as the Bonds, to be excludable from gross income for federal income tax purposes. These requirements include limitations on the use of bond proceeds and the source of repayment of bonds, limitations on the investment of bond proceeds prior to expenditure, a requirement that excess arbitrage earned on the investment of bond proceeds be paid periodically to the United States and a requirement that the issuer file an information report with the Internal Revenue Service (the "Service"). The District has covenanted in the Bond Resolution that it will comply with these requirements. Bond Counsel's opinion will assume continuing compliance with the covenants of the Bond Resolution pertaining to those sections of the Code that affect the excludability of interest on the Bonds from gross income for federal income tax purposes and, in addition, will rely on representations by the District and other parties involved with the issuance of the Bonds with respect to matters solely within the knowledge of the District and such parties, which Bond Counsel has not independently verified. If the District fails to comply with the covenants in the Bond Resolution or if the foregoing representations are determined to be inaccurate or incomplete, interest on the Bonds could become includable in gross income from the date of delivery of the Bonds, regardless of the date on which the event causing such inclusion occurs. Bond Counsel will express no opinion as to the amount or timing of interest on the Bonds or, except as stated above, any federal, state or local tax consequences resulting from the receipt or accrual of interest on, or acquisition, ownership or disposition of, the Bonds. Certain actions may be taken or omitted subject to the terms and conditions set forth in the Bond Resolution upon the advice or with the approving opinion of Bond Counsel. Bond Counsel will express no opinion with respect to Bond Counsel's ability to render an opinion that such actions, if taken or omitted, will not adversely affect the excludability of interest of the Bonds from gross income for federal income tax purposes. Bond Counsel's opinions are based on existing law, which is subject to change. Such opinions are further based on Bond Counsel's knowledge of facts as of the date thereof. Bond Counsel assumes no duty to update or supplement its opinions to reflect any facts or circumstances that may thereafter come to Bond Counsel's attention or to reflect any changes in any law that may thereafter occur or become effective. Moreover, Bond Counsel's opinions are not a guarantee of result and are not binding on the Service; rather, such opinions represent Bond Counsel's legal judgment based upon its review of existing law and in reliance upon the representations and covenants referenced above that it deems relevant to such opinions. The Service has an ongoing audit program to determine compliance with rules that relate to whether interest on state or local obligations is includable in gross income for federal income tax purposes. No assurance can be given as to whether the Service will commence an audit of the Bonds. If an audit is commenced, in accordance with its current published procedures the Service is likely to treat the District as the taxpayer, and the Owners of the Bonds may not have a right to participate in such audit. Public awareness of any future audit of the Bonds could adversely affect the value and liquidity of the Bonds, regardless of the ultimate outcome of the audit. Oualified Tax -Exempt Obligations The Bonds will not be designated "qualified tax-exempt obligations" for financial institutions. 41 Additional Federal Income Tax Considerations Collateral Tax Consequences Prospective purchasers of the Bonds should be aware that the ownership of tax-exempt obligations may result in collateral federal income tax consequences, including but not limited those noted below. Therefore, prospective purchasers of the Bonds should consult their own tax advisors as to the tax consequences of the acquisition, ownership and disposition of the Bonds. An "applicable corporation" (as defined in section 59(k) of the Code) may be subject to a 15 percent alternative minimum tax imposed under section 55 of the Code on its "adjusted financial statement income" (as defined in section 56A of the Code) for such taxable year. Because interest on tax-exempt obligations, such as the Bonds, is included in a corporation's "adjusted financial statement income," ownership of the Bonds could subject certain corporations to alternative minimum tax consequences. Ownership of tax-exempt obligations also may result in collateral federal income tax consequences to financial institutions, life insurance and property and casualty insurance companies, certain S corporations with Subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations, low and middle income taxpayers otherwise qualifying for the health insurance premium assistance credit and individuals otherwise qualifying for the earned income tax credit. In addition, certain foreign corporations doing business in the United States may be subject to the "branch profits tax" on their effectively connected earnings and profits, including tax- exempt interest such as interest on the Bonds. Prospective purchasers of the Bonds should also be aware that, under the Code, taxpayers are required to report on their returns the amount of tax-exempt interest, such as interest on the Bonds, received or accrued during the year. Tax Accounting Treatment of Original Issue Premium If the issue price of any maturity of the Bonds exceeds the stated redemption price payable at maturity of such Bonds, such Bonds (the "Premium Bonds") are considered for federal income tax purposes to have "bond premium" equal to the amount of such excess. The basis of a Premium Bond in the hands of an initial owner is reduced by the amount of such excess that is amortized during the period such initial owner holds such Premium Bond in determining gain or loss for federal income tax purposes. This reduction in basis will increase the amount of any gain or decrease the amount of any loss recognized for federal income tax purposes on the sale or other taxable disposition of a Premium Bond by the initial owner. No corresponding deduction is allowed for federal income tax purposes for the reduction in basis resulting from amortizable bond premium. The amount of bond premium on a Premium Bond that is amortizable each year (or shorter period in the event of a sale or disposition of a Premium Bond) is determined using the yield to maturity on the Premium Bond based on the initial offering price of such Premium Bond. The federal income tax consequences of the purchase, ownership and redemption, sale or other disposition of Premium Bonds that are not purchased in the initial offering at the initial offering price may be determined according to rules that differ from those described above. All owners of Premium Bonds should consult their own tax advisors with respect to the determination for federal, state, and local income tax purposes of amortized bond premium upon the redemption, sale or other disposition of a Premium Bond and with respect to the federal, state, local, and foreign tax consequences of the purchase, ownership, and sale, redemption or other disposition of such Premium Bonds. Tax Accounting Treatment of Original Issue Discount If the issue price of any maturity of the Bonds is less than the stated redemption price payable at maturity of such Bonds (the "OID Bonds"), the difference between (i) the amount payable at the maturity of each OID Bond, and (ii) the initial offering price to the public of such OID Bond constitutes original issue discount with respect to such OID Bond in the hands of any owner who has purchased such OID Bond in the initial public offering of the Bonds. Generally, such initial owner is entitled to exclude from gross income (as defined in section 61 of the Code) an amount of income with respect to such OID Bond equal to that portion of the amount of such original issue discount allocable to the period that such OID Bond continues to be owned by such owner. Because original issue discount is treated as interest for federal income tax purposes, the discussions regarding interest on the Bonds under the captions "TAX MATTERS — Tax Exemption" and "TAX MATTERS — Additional Federal Income Tax Considerations — Collateral 42 Tax Consequences" and "—Tax Legislative Changes" generally apply and should be considered in connection with the discussion in this portion of the Official Statement. In the event of the redemption, sale or other taxable disposition of such OID Bond prior to stated maturity, however, the amount realized by such owner in excess of the basis of such OID Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such OID Bond was held by such initial owner) is includable in gross income. The foregoing discussion assumes that (i) the Underwriter has purchased the Bonds for contemporaneous sale to the public and (ii) all of the OID Bonds have been initially offered, and a substantial amount of each maturity thereof has been sold, to the general public in arm's-length transactions for a price (and with no other consideration being included) not more than the initial offering prices thereof stated on the cover page of this Official Statement. Neither the District nor Bond Counsel has made any investigation or offers any assurance that the OID Bonds will be offered and sold in accordance with such assumptions. Under existing law, the original issue discount on each OID Bond accrues daily to the stated maturity thereof (in amounts calculated as described below for each six-month period ending on the date before the semiannual anniversary dates of the date of the Bonds and ratably within each such six-month period) and the accrued amount is added to an initial owner's basis for such OID Bond for purposes of determining the amount of gain or loss recognized by such owner upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (i) the sum of the issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (ii) the amounts payable as current interest during such accrual period on such Bond. The federal income tax consequences of the purchase, ownership, and redemption, sale or other disposition of OID Bonds that are not purchased in the initial offering at the initial offering price may be determined according to rules that differ from those described above. All owners of OID Bonds should consult their own tax advisors with respect to the determination for federal, state, and local income tax purposes of interest accrued upon redemption, sale or other disposition of such OID Bonds and with respect to the federal, state, local and foreign tax consequences of the purchase, ownership, redemption, sale or other disposition of such OID Bonds. Tax Legislative Changes Current law may change so as to directly or indirectly reduce or eliminate the benefit of the excludability of interest on the Bonds from gross income for federal income tax purposes. Any proposed legislation, whether or not enacted, could also affect the value and liquidity of the Bonds. Prospective purchasers of the Bonds should consult with their own tax advisors with respect to any recently enacted, proposed, pending or future legislation. SALE AND DISTRIBUTION OF THE BONDS Award of the Bonds After requesting competitive bids for the Bonds, the District accepted the bid resulting in the lowest net interest cost, which bid was tendered by (the "Initial Purchaser") bearing the interest rates shown on the cover page hereof, at a price of % of the principal amount thereof plus accrued interest to the date of delivery which resulted in a net effective interest rate of % as calculated pursuant to Chapter 1204 of the Texas Government Code. Prices and Marketability The prices and other terms with respect to the offering and sale of the Bonds may be changed at any time by the Initial Purchaser after the Bonds are released for sale, and the Bonds may be offered and sold at prices other than the initial offering prices, including sales to dealers who may sell the Bonds into investment accounts. In connection with the offering of the Bonds, the Initial Purchaser may over -allot or effect transactions that stabilize or maintain the market prices of the Bonds at levels above those that might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. 43 The District has no control over trading of the Bonds in the secondary market. Moreover, there is no guarantee that a secondary market will be made in the Bonds. In such a secondary market, the difference between the bid and asked price of utility district bonds may be greater than the difference between the bid and asked price of bonds of comparable maturity and quality issued by more traditional municipal entities, as bonds of such entities are more generally bought, sold, or traded in the secondary market. Securities Laws No registration statement relating to the offer and sale of the Bonds has been filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended, in reliance upon the exemptions provided thereunder. The Bonds have not been registered or qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been registered or qualified under the securities laws of any other jurisdiction. The District assumes no responsibility for registration or qualification of the Bonds under the securities laws of any other jurisdiction in which the Bonds may be offered, sold or otherwise transferred. This disclaimer of responsibility for registration or qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration or qualification provisions in such other jurisdiction. MUNICIPAL BOND RATING AND MUNICIPAL BOND INSURANCE Moody's Investors Service ("Moody's") has assigned an underlying rating of " " to the Bonds. An explanation of the ratings may be obtained from Moody's, 7 World Trade Center, 250 Greenwich Street, New York, New York 10007. The fee associated with the rating assigned to the District by Moody's will be paid by the District; however, the fee associated with ratings provided by other agencies will be at the expense of the Initial Purchaser. There is no assurance that such rating will continue for any given period of time or that it will not be revised or withdrawn entirely by Moody's, if in its judgement, circumstances so warrant. Any such revisions or withdrawals of the rating may have an adverse effect on the market price of the price of the Bonds. An application has been made for municipal bond insurance. If qualified, the purchase of municipal bond insurance is optional and at the expense of the Initial Purchaser. See "RISK FACTORS —Risk Factors Related to the Purchase of Municipal Bond Insurance." PREPARATION OF OFFICIAL STATEMENT Sources and Compilation of Information The fmancial data and other information contained in this Official Statement has been obtained primarily from the District's records, the Developers, the Engineer, the Tax Assessor/Collector, the Appraisal District and information from certain other sources. All of these sources are believed to be reliable, but no guarantee is made by the District as to the accuracy or completeness of the information derived from sources other than the District, and its inclusion herein is not to be construed as a representation on the part of the District except as described below under "Certification of Official Statement." Furthermore, there is no guarantee that any of the assumptions or estimates contained herein will be realized. The summaries of the agreements, reports, statutes, resolutions, engineering and other related information set forth in this Official Statement are included herein subject to all of the provisions of such documents. These summaries do not purport to be complete statements of such provisions, and reference is made to such documents for further information. Financial Advisor Post Oak Municipal Advisors LLC is employed as the Financial Advisor to the District to render certain professional services, including advising the District on a plan of financing and preparing the Official Statement, including the Official Notice of Sale and the Official Bid Form for the sale of the Bonds. In its capacity as Financial Advisor, Post Oak Municipal Advisors LLC has compiled and edited this Official Statement. In addition to compiling and editing, the Financial Advisor has obtained the information set forth herein under the caption indicated from the following sources: "THE DISTRICT" — Brazos County MUD 1., BV Southern Pointe Development, Inc. and Lennar Homes of Texas Land and Construction, Ltd. (The "Developers"), Pape -Dawson Engineers, Inc. ("Engineer"), and Records of the District ("Records"); "THE DEVELOPERS AND MAJOR LANDOWNER" — Developers; "THE ROAD 44 SYSTEM," and "THE SYSTEM"— Engineer; "UNLIMITED TAX BONDS AUTHORIZED BUT UNISSUED" - Records; "FINANCIAL STATEMENT (UNAUDITED)" - Brazos Central Appraisal District and B&A Municipal Tax Service LLC, Tax Assessor/Collector; "ESTIMATED OVERLAPPING DEBT STATEMENT" - Municipal Advisory Council of Texas and Financial Advisor; "TAX DATA" - B&A Municipal Tax Service LLC; "MANAGEMENT" — Records; "DEBT SERVICE REQUIREMENTS" - Financial Advisor; "THE BONDS," "TAX PROCEDURES," "LEGAL MATTERS," and "TAX MATTERS" - Allen Boone Humphries Robinson LLP. The Financial Advisor has provided the following sentence for inclusion in this Official Statement. The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the District and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such information. Consultants In approving this Official Statement, the District has relied upon the following consultants. Engineer: The information contained in this Official Statement relating to engineering matters and to the description of the System and in particular that information included in the sections entitled "THE DISTRICT," "THE ROAD SYSTEM," and "THE SYSTEM" have been provided by Pape — Dawson Engineering, Inc. and has been included herein in reliance upon the authority of said firm as experts in the field of civil engineering. Appraisal District: The information contained in this Official Statement relating to the assessed valuations has been provided by the Brazos Central Appraisal District and has been included herein in reliance upon the authority of such entity as experts in assessing the values of property in Brazos County, including the District. Tax Assessor/Collector: The information contained in this Official Statement relating to the historical breakdown of the Assessed Valuation, principal taxpayers, and certain other historical data concerning tax rates and tax collections has been provided by B&A Municipal Tax Service, LLC and is included herein in reliance upon the authority of such entity as experts in assessing and collecting taxes. Auditor: As required by the Texas Water Code, the District retains an independent accountant to audit the District's financial statements annually, which audited financial statements are filed with the Commission. The District's financial statements for the fiscal year ended November 30, 2024, have been audited by McGrath & Co., PLLC. See "APPENDIX A" for a copy of the District's November 30, 2024, audited financial statements. Bookkeeper: The information related to the "unaudited" summary of the District's General Fund as it appears in "GENERAL FUND" has been provided by Municipal Accounts & Consulting, L.P., and is included herein in reliance upon the authority of such firm as experts in the tracking and managing the various funds of special districts. Updating the Official Statement If, subsequent to the date of the Official Statement, the District learns, through the ordinary course of business and without undertaking any investigation or examination for such purposes, or is notified by the Initial Purchaser, of any adverse event which causes the Official Statement to be materially misleading, and unless the Initial Purchaser elects to terminate its obligation to purchase the Bonds, the District will promptly prepare and supply to the Initial Purchaser an appropriate amendment or supplement to the Official Statement satisfactory to the Initial Purchaser; provided, however, that the obligation of the District to so amend or supplement the Official Statement will terminate when the District delivers the Bonds to the Initial Purchaser, unless the Initial Purchaser notifies the District on or before such date that less than all of the Bonds have been sold to ultimate customers, in which case the District's obligations hereunder will extend for an additional period of time as required by law (but not more than 90 days after the date the District delivers the Bonds). 45 Certification of Official Statement The District, acting through its Board of Directors in its official capacity, hereby certifies, as of the date hereof, that the information, statements, and descriptions or any addenda, supplement and amendment thereto pertaining to the District and its affairs contained herein, to the best of its knowledge and belief, contain no untrue statement of a material fact and do not omit to state any material fact necessary to make the statements herein, in light of the circumstances under which they are made, not misleading. With respect to information included in this Official Statement other than that relating to the District, the District has no reason to believe that such information contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements herein, in the light of the circumstances under which they are made, not misleading; however, the Board has made no independent investigation as to the accuracy or completeness of the information derived from sources other than the District. In rendering such certificate, the official executing this certificate may state that he has relied in part on his examination of records of the District relating to matters within his own area of responsibility, and his discussions with, or certificates or correspondence signed by, certain other officials, employees, consultants and representatives of the District. CONTINUING DISCLOSURE OF INFORMATION In the Bond Resolution, the District has made the following agreement for the benefit of the registered and beneficial owners of the Bonds. The District is required to observe the agreement for so long as it remains obligated to advance funds to pay the Bonds subject to amendment to or repeal of same as set forth below. Under the agreement, the District will be obligated to provide certain financial information and operating data annually, and timely notice of certain specified events, to the Municipal Securities Rulemaking Board ("MSRB"), or any successor to its functions as a repository, through its Electronic Municipal Market Access ("EMMA") system. Annual Reports The District will provide certain financial information and operating data to the MSRB through its EMMA system. The financial information and operating data which will be provided with respect to the District includes all quantitative financial information and operating data of the general type, included in "FINANCIAL STATEMENT (UNAUDITED)," "TAX DATA," "DEBT SERVICE REQUIREMENTS" and in APPENDIX A (Independent Auditor's Report and Financial Statements). The District will update and provide this information to the MSRB within six months after the end of each of its fiscal years ending in or after 2026. Any information so provided shall be prepared in accordance with generally accepted accounting principles or other such principles as the District may be required to employ from time to time pursuant to state law or regulation, and audited if the District commissions an audit and if the audit report is completed within the period during which it must be provided. If the audit report is not complete within such period, then the District shall provide unaudited financial statements for the applicable fiscal year to the MSRB within such six-month period and audited financial statements when and if the audit report becomes available. The District's current fiscal year end is November 30. Accordingly, it must provide updated information by May 31 in each year, unless the District changes its fiscal year. If the District changes its fiscal year, it will notify the MSRB of the change. Event Notices The District will provide timely notices of certain specified events to the MSRB, but in no event will such notices be provided to the MSRB in excess of ten business days after the occurrence of an event. The District will provide notice of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non- payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) modifications to rights of beneficial owners of the Bonds, if material; (8) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the District or other 46 obligated person; (13) consummation of a merger, consolidation, or acquisition involving the District or other obligated person or the sale of all or substantially all of the assets of the District or other obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of an definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) appointment of a successor or additional trustee or the change of name of a trustee, if material; (15) incurrence of a financial obligation of the District or other obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the District or other obligated person, any of which affect beneficial owners of the Bonds, if material; and (16) default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the District or other obligated person, any of which reflect financial difficulties. The terms "obligated person" and "financial obligation" when used in this paragraph shall have the meanings ascribed to them under the Rule. The term "material" when used in this paragraph shall have the meaning ascribed to it under the federal securities laws. Neither the Bonds nor the Bond Resolution make any provision for debt service reserves or liquidity enhancement. In addition, the District will provide timely notice of any failure by the District to provide financial information, operating data, or financial statements in accordance with its agreement described above under "Annual Reports." Availability of Information from MSRB The District has agreed to provide the foregoing information only to the MSRB. The MSRB makes the information available to the public without charge through the EMMA internet portal at www.emma.msrb.org. Limitations and Amendments The District has agreed to update information and to provide notices of specified events only as described above. The District has not agreed to provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or prospects or agreed to update any information that is provided, except as described above. The District makes no representation or warranty concerning such information or concerning its usefulness to a decision to invest in or sell Bonds at any future date. The District disclaims any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement made pursuant to its agreement, although Registered or beneficial owners of Bonds may seek a writ of mandamus to compel the District to comply with its agreement. The District may amend its continuing disclosure agreement from time to time to adapt the changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the District, if but only if the agreement, as amended, would have permitted an underwriter to purchase or sell Bonds in the offering made hereby in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and either the Registered Owners of a majority in aggregate principal amount of the outstanding Bonds consent to the amendment or any person unaffiliated with the District (such as nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The District may amend or repeal the agreement in the Bond Resolution if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid or unenforceable, but only to the extent that its right to do so would not prevent the Initial Purchaser from lawfully purchasing the Bonds in the initial offering. If the District so amends the agreement, it has agreed to include with any financial information or operating data next provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information and operating data so provided. Compliance with Prior Undertakings During the last five years, the District has complied in all material respects with its previous continuing disclosure agreements made by the District. 47 MISCELLANEOUS All estimates, statements and assumptions in this Official Statement and the Appendices hereto have been made on the basis of the best information available and are believed to be reliable and accurate. Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact, and no representation is made that any such statements will be realized. This Official Statement was approved by the Board of Directors of Brazos County Municipal Utility District No. 1, as of the date shown on the cover page. ATTEST: /s/ Secretary, Board of Directors Brazos County Municipal Utility District No. 1 /s/ President, Board of Directors Brazos County Municipal Utility District No. 1 48 AERIAL PHOTOGRAPH (Approximate boundaries of the District as of November 2025) Brazos County Municipal Utility District No. 1 PHOTOGRAPHS The following photographs were taken in the District in November 2025, solely to illustrate the type of improvements which have been constructed in the District. The District cannot predict if any additional improvements will be constructed in the future. APPENDIX A Independent Auditor's Report and Financial Statements for the fiscal year ended [November 30, 2024] 3RD ROAD BOND ISSUE - BRAZOS COUNTY MUD 1 CONSTRUCTION COSTS 1. Southern 2. Southern 3. Southern 4. Southern 5. Southern 6. Southern 7. Southern 8. Southern 9. Southern 10. Southern 11. Southern Pointe Section 100 Pointe SH 6 Entrance Pointe Section 200 Pointe Section 101 Pointe Section 104 & 120 Pointe Section 102 Pointe Section 201 Pointe Sections 103 & 119 Pointe Section 400 Pointe Section 111 (Southern Pointe & Mather Parkways) Pointe Section 106 12. Land Cost a. Southern Pointe Section 100 b. Southern Pointe Section 104 & 120 c. Southern Pointe Section 111 (Southern Pointe & Mather Parkways) d. Southern Pointe Section 106 13. Engineering is 8.51 % of Items 1-11 Total Developer Contribution Items (76.62% of BIR) NON CONSTRUCTION COSTS 1. Legal Fees 2. Fiscal Agent Fees 3. Interest Costs a. Capitalized Interest (12 months @5.00%) b. Developer Interest (5.00% ) 4. Operating Advances 5. Bond Discount (3%) 6. Bond Issuance Costs 7. Engineering Fees 8. Attorney General's Fee (0.10%of BIRor $9,500 whichever is less) TOTAL NON CONSTRUCTION COST (23.38% of BIR) TOTAL BOND ISSUE REQUIREMENT Amount ($) 4,781,766 1,087,193 2,253,513 1,036,486 1,481,058 1,074,923 1,809,388 1,800,971 1,399,155 3,318,201 1,087,835 556,307 204,705 80,494 197,177 73,931 1,583,587 23, 270, 383 District's Share ($) Notes 996,855 141,005 18,550 140,160 676,337 19,988 12,770 40,381 10,939 2,188,260 450,017 (1.) 556,307 204,705 80,494 197,177 73,931 399,383 5,650,952 District's Share ($) Notes 187,500 147,500 368,750 692,804 13,920 221,250 49,949 35,000 7,375 1,724,048 7,375,000 Note: (1.) Construction Costs, Engineering Fees and Developer Interest for Southern Pointe Section SP 106 are capped at 89.09%. The remaining 10.91 % should be included in the next Road Bond Issue. Land Costs for the ROW's are NOTcapped. 11/4/2025 1 of 1 cii) MUNICIPAL ADVISORS POST OAK BOND DEBT SERVICE Brazos County Municipal Utility District No. 1 Roads 2025 Dated Date 01 /01 /2026 Delivery Date 01/15/2026 Period Ending Principal Coupon Interest Debt Service 09/01/2026 245,833.33 245,833.33 09/01/2027 155,000.00 5.000% 368,750.00 523,750.00 09/01/2028 160,000.00 5.000°/a 361,000.00 521,000.00 09/01/2029 170,000.00 5.000% 353,000.00 523,000.00 09/01/2030 180,000.00 5.000°/a 344,500.00 524,500.00 09/01/2031 190,000.00 5.000% 335,500.00 525,500.00 09/01/2032 200,000.00 5.000°/a 326,000.00 526,000.00 09/01/2033 205,000.00 5.000% 316,000.00 521,000.00 09/01/2034 220,000.00 5.000°/a 305,750.00 525,750.00 09/01/2035 230,000.00 5.000% 294,750.00 524,750.00 09/01/2036 240,000.00 5.000°/a 283,250.00 523,250.00 09/01/2037 250,000.00 5.000% 271,250.00 521,250.00 09/01/2038 265,000.00 5.000°/a 258,750.00 523,750.00 09/01/2039 280,000.00 5.000% 245,500.00 525,500.00 09/01/2040 290,000.00 5.000°/a 231,500.00 521,500.00 09/01/2041 305,000.00 5.000% 217,000.00 522,000.00 09/01/2042 320,000.00 5.000°/a 201,750.00 521,750.00 09/01/2043 335,000.00 5.000% 185,750.00 520,750.00 09/01/2044 355,000.00 5.000°/a 169,000.00 524,000.00 09/01/2045 370,000.00 5.000% 151,250.00 521,250.00 09/01/2046 390,000.00 5.000°/a 132,750.00 522,750.00 09/01/2047 410,000.00 5.000% 113,250.00 523,250.00 09/01/2048 430,000.00 5.000°/a 92,750.00 522,750.00 09/01/2049 450,000.00 5.000% 71,250.00 521,250.00 09/01/2050 475,000.00 5.000°/a 48,750.00 523,750.00 09/01/2051 500,000.00 5.000% 25,000.00 525,000.00 7,375,000.00 5,949,833.33 13,324,833.33 Nov 11, 2025 2:07 pm Prepared by Post Oak Municipal Advisors LLC (mf) Page 1 cii) MUNICIPAL ADVISORS POST OAK BOND DEBT SERVICE Brazos County Municipal Utility District No. 1 Roads 2025 Dated Date Delivery Date 01/01/2026 01/15/2026 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 03/01/2026 61,458.33 61,458.33 09/01/2026 184,375.00 184,375.00 245,833.33 03/01/2027 184,375.00 184, 375.00 09/01/2027 155,000.00 5.000% 184,375.00 339,375.00 523,750.00 03/01/2028 180,500.00 180, 500.00 09/01/2028 160,000.00 5.000% 180,500.00 340,500.00 521,000.00 03/01/2029 176,500.00 176, 500.00 09/01/2029 170,000.00 5.000% 176,500.00 346,500.00 523,000.00 03/01/2030 172,250.00 172,250.00 09/01/2030 180,000.00 5.000% 172,250.00 352,250.00 524,500.00 03/01/2031 167,750.00 167, 750.00 09/01/2031 190,000.00 5.000% 167,750.00 357,750.00 525,500.00 03/01/2032 163,000.00 163,000.00 09/01/2032 200,000.00 5.000% 163,000.00 363,000.00 526,000.00 03/01/2033 158,000.00 158,000.00 09/01/2033 205,000.00 5.000% 158,000.00 363,000.00 521,000.00 03/01/2034 152,875.00 152, 875.00 09/01/2034 220,000.00 5.000% 152,875.00 372,875.00 525,750.00 03/01/2035 147,375.00 147, 375.00 09/01/2035 230,000.00 5.000% 147,375.00 377,375.00 524,750.00 03/01/2036 141,625.00 141,625.00 09/01/2036 240,000.00 5.000% 141,625.00 381,625.00 523,250.00 03/01/2037 135,625.00 135,625.00 09/01/2037 250,000.00 5.000% 135,625.00 385,625.00 521,250.00 03/01/2038 129,375.00 129, 375.00 09/01/2038 265,000.00 5.000% 129,375.00 394,375.00 523,750.00 03/01/2039 122,750.00 122, 750.00 09/01/2039 280,000.00 5.000% 122,750.00 402,750.00 525,500.00 03/01/2040 115,750.00 115,750.00 09/01/2040 290,000.00 5.000% 115,750.00 405,750.00 521,500.00 03/01/2041 108,500.00 108, 500.00 09/01/2041 305,000.00 5.000% 108,500.00 413,500.00 522,000.00 03/01/2042 100,875.00 100, 875.00 09/01/2042 320,000.00 5.000% 100,875.00 420,875.00 521,750.00 03/01/2043 92,875.00 92,875.00 09/01/2043 335,000.00 5.000% 92,875.00 427,875.00 520,750.00 03/01/2044 84,500.00 84,500.00 09/01/2044 355,000.00 5.000% 84,500.00 439,500.00 524,000.00 03/01/2045 75,625.00 75,625.00 09/01/2045 370,000.00 5.000% 75,625.00 445,625.00 521,250.00 03/01/2046 66,375.00 66,375.00 09/01/2046 390,000.00 5.000% 66,375.00 456,375.00 522,750.00 03/01/2047 56,625.00 56,625.00 09/01/2047 410,000.00 5.000% 56,625.00 466,625.00 523,250.00 03/01/2048 46,375.00 46,375.00 09/01/2048 430,000.00 5.000% 46,375.00 476,375.00 522,750.00 03/01/2049 35,625.00 35,625.00 09/01/2049 450,000.00 5.000% 35,625.00 485,625.00 521,250.00 03/01/2050 24,375.00 24,375.00 09/01/2050 475,000.00 5.000% 24,375.00 499,375.00 523,750.00 03/01/2051 12,500.00 12, 500.00 09/01/2051 500,000.00 5.000% 12,500.00 512,500.00 525,000.00 7,375,000.00 5,949,833.33 13,324,833.33 13,324,833.33 Nov 11, 2025 2:07 pm Prepared by Post Oak Municipal Advisors LLC (mf) Page 2 Brazos County Municipal Utility District No. 1 Road Bonds Series 2026 No Growth Cash Flow Road Bonds Series 2026 (e) Projected Tax Rate Projected Projected Available for Beginning Debt Investments Total Ending Debt Percentage of Tax Roll Taxable Tax Rate Collections at (Maintenance Collections at Tax Rate Collections at Calendar Service Fund Earnings at Capitalized Available Existing Debt Projected Total Service Fund Next Year's January 1 Assessed Value (M&O) 95% Roads) 95% (Debt) 95% Year Balance (c) 4.00% Interest (d) Funds Service Principal Interest Debt Service Debt Service Balance Debt Service 2025 $ 234,243,742 (a) 0.1600 $ 356,050 0.0200 $ 44,506 0.820000 $ 1,824,759 2026 $ 1,235,217 49,409 368,750 $ 3,478,134 $ 2,034,271 $ - $ 245,833 $ 245,833 $ 2,280,104 $ 1,198,030 47.69% 2026 312,670,759 (b) 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2027 1,198,030 47,921 3,815,323 1,988,547 155,000 368,750 523,750 2,512,297 1,303,026 52.06% 2027 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2028 1,303,026 3,872,398 1,982,061 160,000 361,000 521,000 2,503,061 1,369,336 54.84% 2028 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2029 1,369,336 3,938,708 1,973,789 170,000 353,000 523,000 2,496,789 1,441,920 57.55% 2029 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2030 1,441,920 4,011,292 1,981,105 180,000 344,500 524,500 2,505,605 1,505,687 60.19% 2030 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2031 1,505,687 4,075,059 1,976,221 190,000 335,500 525,500 2,501,721 1,573,337 62.56% 2031 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2032 1,573,337 4,142,709 1,988,952 200,000 326,000 526,000 2,514,952 1,627,757 64.70% 2032 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2033 1,627,757 4,197,129 1,994,825 205,000 316,000 521,000 2,515,825 1,681,304 66.46% 2033 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2034 1,681,304 4,250,676 2,004,026 220,000 305,750 525,750 2,529,776 1,720,900 67.99% 2034 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2035 1,720,900 4,290,272 2,006,329 230,000 294,750 524,750 2,531,079 1,759,193 69.66% 2035 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2036 1,759,193 4,328,565 2,002,025 240,000 283,250 523,250 2,525,275 1,803,290 71.23% 2036 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2037 1,803,290 4,372,662 2,010,506 250,000 271,250 521,250 2,531,756 1,840,906 72.33% 2037 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2038 1,840,906 4,410,277 2,021,281 265,000 258,750 523,750 2,545,031 1,865,246 73.44% 2038 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2039 1,865,246 4,434,618 2,014,206 280,000 245,500 525,500 2,539,706 1,894,912 74.13% 2039 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2040 1,894,912 4,464,284 2,034,544 290,000 231,500 521,500 2,556,044 1,908,240 74.74% 2040 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2041 1,908,240 4,477,612 2,031,063 305,000 217,000 522,000 2,553,063 1,924,550 75.11% 2041 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2042 1,924,550 4,493,922 2,040,413 320,000 201,750 521,750 2,562,163 1,931,759 75.11% 2042 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2043 1,931,759 4,501,131 2,051,150 335,000 185,750 520,750 2,571,900 1,929,231 74.71% 2043 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2044 1,929,231 4,498,603 2,058,369 355,000 169,000 524,000 2,582,369 1,916,234 74.17% 2044 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2045 1,916,234 4,485,606 2,062,364 370,000 151,250 521,250 2,583,614 1,901,992 73.60% 2045 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2046 1,901,992 4,471,364 2,061,435 390,000 132,750 522,750 2,584,185 1,887,179 75.92% 2046 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2047 1,887,179 4,456,551 1,962,344 410,000 113,250 523,250 2,485,594 1,970,958 78.98% 2047 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2048 1,970,958 4,540,329 1,972,879 430,000 92,750 522,750 2,495,629 2,044,701 82.27% 2048 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2049 2,044,701 4,614,073 1,964,243 450,000 71,250 521,250 2,485,493 2,128,580 85.30% 2049 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2050 2,128,580 4,697,952 1,971,675 475,000 48,750 523,750 2,495,425 2,202,527 419.53% 2050 312,670,759 0.1200 356,445 0.0150 44,556 0.865000 2,569,372 2051 2,202,527 4,771,899 500,000 25,000 525,000 525,000 4,246,899 $ 50,188,622 $ 7,375,000 $ 5,949,833 $ 13,324,833 $ 63,513,455 (a) Reflects the 2025 Certified Taxable Assessed Valuation of $222,109,726, plus the Owners Uncertified Value of $12,134,016. Values as provided by BCAD, (b) Reflects an Estimate of Taxable Value as of August 1, 2025 of $312,670,759, as provided by BCAD. (c) Based on total Debt Service Funds available after the debt service payment on September 2, 2025 (d) Based on 12 months of capitalized interest at 5.00% interest. (e) Based on an anticipated issue date of January 1, 2026 at 5.00% interest fPOST OAK MUNICIPAL ADVISORS Financing Timetable Brazos County Municipal Utility District No. 1 Unlimited Tax Road Bonds, Series 2026 Preliminary SMTWTFS SMTWTFS 1 21 31 4 1 5 6 7 8 9 10 11 2 3 4 5 61-1 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 23 24 25 26 27 28 29 30 Regular Board Meeting Date Tue 10/28 Wed 11/5 I SMTWT F S 1 2 3 41 51 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Bond Market Holiday Action Item Distribute first draft of POS Return comments on first draft of POS SMTWT F S 11 21 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Responsibility FA All Fri 11/7 Regular Board Meeting: POS A. •roval and authorize distribution of POS Issuer/BC/FA Wed 11/12 Distribute second draft of POS Thu 11/20 Return comments on second draft of POS Mon 12/1 Send Ads (MAC/Newspaper) Mon 12/1 Distribute third draft of POS Fri 12/5 Return final comments on of POS Mon 12/8 Print and Distribute POS Thu 12/11 City Council Meeting to Approve POS FA All FA FA All FA City/Issuer/BC Mon 12/15 Bond Pricing All Mon 12/15 Distribute draft of final Official Statement (OS) Fri 12/19 Return comments on draft of OS Mon 12/22 Print and distribute OS Wed 1/8 Distribute Secure Closing email Mon 1/13 Accept Secure Closing Invite/Create your BaseFund account Mon 1/13 Upload Wiring Instructions Mon 1/13 Verify Wiring Instructions Mon 1/13 Review Closing Memo in BaseFund & Final Sign off FA All FA FA All All All All Tue 1/21 Closing: Transfer funds and deliver the bonds All Tue 1/21 Closing Finalized FA rPOST OAK MUNICIPAL AOV SORS 11/18/2025, *Preliminary;subject to change*