LAMESATEXAS CITY COANCIL AGENDA TRADEC CORRIDOR CROSSING NOTICE IS GIVEN THAT THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, WILL MEET IN A REGULAR SCHEDULED MEETING AT 5:30 P.M. ON TUESDAY, FEBRUARY 18, 2025, 601 SOUTH FIRST STREET, FOR THE PURPOSE OF CONSIDERING AND TAKING OFFICIAL ACTION ON THE FOLLOWING TEMS: 1. CALL TO ORDER: 2. INVOCATION: 3. CONSENT AGENDA: All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member SO requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. 4. OPEN AND AWARD BIDS = 2004 K-PAC VERTICLE BALER: City Council to open and award bids for the sale of a 2004 K-Pac Vertical Baler. (City Manager) 5. OPEN AND AWARD BIDS = 1993 AM GENERAL 2.5 TON 6X6 MILITARY SURPLUS FIRE TRUCK 3116 CATERPILLAR ENGINE: City Council to open and award bids for the sale of a 19963 AM General 6x6 Army Surplus Fire Truck.(Larry Duyck, Fire Chief) 6. CRMWA: Council to hear presentation from Cris Norris on Canadian River Municipal Water Authority future water projects and acquisitions. (Cris Norris) 7. RACIAL PROFILING REPORT: Presentation of the annual racial profiling report from the Police Department. (Chief Josh Peterson) 8. BUDGET AMENDMENT III: City Council to consider amending Ordinance O- 11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to cover contracted medical expenses at Medical Arts Medical Hospital for persons arrested by City of Lamesa Police Department. (City Manager & Finance) 9. BUDGET AMENDMENT IV: City Council to considér amending Ordinance O- 11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to cover expenditures for remodeling a building for animal control in the City of Lamesa Animal Control Division. (City Manager & Finance Director) 10.A RESOLUTION OF THE CITY OF LAMESA, TEXAS, APPROVING THE ACCEPTANCE OF REAL PROPERTY BY THE CITY OF LAMESA FOR THE BENEFIT OF THE LAMESA VETERAN'S ASSOCIATION.: City Council to consider approving the acceptance of real property by the City of Lamesa for the benefit of the Lamesa Veterans Association.(City Manager) 11.AGREEMENT BETWEEN THE DAWSON COUNTY HOSPITAL DISTRICT AND THE CITY OF LAMESA /LAMESA POLICE DEPARTMENT: City council to consider approving an agreement between the City of Lamesa Police Department in cooperation with the Dawson County Hospital join together in this agreement. (City Manager) 12.A RESOLUTION OF THE CITY OF LAMESA, TEXAS FINDING THAT THE STATEMENT OF INTENT OF ATMOS ENERGY CORP., WEST TEXAS DIVISION TO CHANGE RATES FILING WITHIN THE CITY SHOULD BE DENIED:FINDING THAT THE CITY'S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY: FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO TE PUBLIC AS REQUIRED BY LAW: REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL: City Council to consider a resolution of the City of Lamesa 1 Texas finding hat the statement of intent of Atmos Energy Corp., West Texas Division to change rates filing within the city should be denied.(City Manager) 13.2025 SPECIAL ELECTION: Consider passing a resolution ordering and establishing procedures for the City of Lamesa Special Election to be held on May 3, 2025. (City Secretary) 14.CITY STAFF REPORTS: a. PARKS, STREETS, SANTATIONIANDFLL REPORT: Director to report on the city's recent events. b. UTILITIES DIRECTOR REPORT: Utilities Director to report on the city's recent events. 15.FINANCIAL REPORT: Finance Director to report on the city's finances. 16.INVESTMENT REPORT: Finance Director to report on City's investments through the 1st quarter of FY 2024/2025. 17.CITY MANAGER REPORT: City Manager to report on current activities and answer questions from the City Council. 18.MAYOR'S REPORT: Mayor to report on current activities and to answer questions from City Council. 19. EXECUTIVE SESSION: Council to consider convening into closed executive session regarding: Sec. 551.071, Texas Government Code Consultation with Attorney regarding contemplated litigation under the provisions of the Texas Open Meetings Act). Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person. 20.ADJOURNMENT: The next regularly scheduled meetings of the City Council of the City ofl Lamesa will be March 18, 2025, at 5:30 P.M. Open Meetings Information GLOSED MEETINGS MEETING AGCESSIBILITY The City Council reserves the right to Upon request, auxiliary aids and services adjourn into closed session at any time will be provided to an individual with a during the course of this meeting to discuss disability in order to allow them to effectively any of the matters listed above, as participate in the city council meeting. authorized by Texas Government Code Those requesting auxiliary aids or services Section 551.071 (Consultation with should notify the contact person listed below Attorney), 551.072 (Deliberations about at least twenty-four hours prior to the Real Property), 551.073 (Deliberations meeting by mail, telephone, or RELAY about Gifts and Donations), 551.074 Texas (1-800-735-2989) (Personnel Matters), 551.076 (Deliberations Contact: Betty Conde at 806-872-4322 about Security Devices) and 551.087 (Economic Development). 601 South First Street, Lamesa, Texas 79331 PUBLIG PARTICIPATION %R Telephone - (806) 872-4322 K The meeting will be held pursuant to the DE Fax - 806) 872-4338 provisions of the Texas Open Meetings Act (Govt. Code, Chapter 551). Discussion and actions are limited to the agenda items listed above. Persons desiring to address the City Council or express their opinion about a particular item on this agenda should notify the City Secretary before the meeting. Persons desiring to present other business or discuss matters not on this agenda should submit a request in writing to the City Secretary by the end of business hours on the Wednesday before the next meeting in order to be considered for inclusion on that agenda. CERTIFICATION OF NOTIGE I certify this agenda was posted at the City Hall, 601 South First Street, Lamesa, Texas at 4:45 p.m., February 14, 2025, in accordance with LAMESATEXAS Chapter 551.041 of the Government Code. TRADECOIRIDON CROSSING Betty Conde, City Secretary City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEMS: 1&2 1. CALL TO ORDER: Announcement by the Mayor. "This meeting is being held in accordancé with the provisions of the Texas Open Meetings Act (Govt. Code, Chapter 551). Discussion and actions are limited to the agenda items as posted. Persons desiring to address the City Council or express their opinion about a particular item on this agenda should complete a request at this time. Persons desiring to present other business or discuss matters not on this agenda should submit a request in writing to the City Secretary in order to be considered for inclusion on the agenda of the next meeting. A quorum being present as evidenced by the presence of members of the City Council, this meeting is hereby called to, order." * The following members are present: JOSH STEVENS Mayor VACANT Council Member - District 1 FRED VERA Council Member = District 2 GLORIA VI RODRIGUEZ Council Member - District 3 DANNY JACOBS Council Member - District 4 BOBBY G. GONZALES Council Member = District 5/MAYOR-PRO-TEM JAMESA GRAYSON Council Member = District 6 City Staff members present at the meeting: JOE HINES City Manager BETTY CONDE City Secretary RUSSELL CASSELBERRY City Attorney Members of the press present at the meeting: Members of the public present at the meeting: 2. INVOCATION: AND PLEDGE OF ALLEGIANCE. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:3 SUBJECT: CONSENT AGENDA ITEMS PROCEEDING: Approval SUBMITTED BY: City Staff SUMMARY STATEMENT All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member SO requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. a. APPROVAL OF THE MINUTES: Approval of the minutes of the council meeting held on January 21 and February 4, 2025. b. BILLS FOR JANUARY 2025: Approval of the bills paid by the City of Lamesa for the month of January 2025. COUNCIL ACTION DISCUSSION Motion by Council Member to approve Item 3 a and b. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM These items are considered non-controversial but do require formal council approval. If a council member objects to a consent item, it is removed from the list and separate action is taken on the item(s). If a council member questions a consent item, but not sO strongly as to require that it be removed from the list, his/her "no" vote or abstention can be entered in the minutes when the consent vote is taken. Recommend approval. THE STATE OF TEXAS K COUNTY OF DAWSON K CITY OF LAMESA K MINUTES OF THE CITY COUNCIL SPECIAL CALLED MEETING: February 4, 2025 On this the 4th day of February 2025, at 5:30 P.M., there came on and was held a special called meeting of the City Council of the City of Lamesa, Dawson County, Texas. Notice of such meeting having been posted at the City Hall at 601 South First Street in the City of Lamesa, Texas in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551). The following items were listed on the notice and the following proceedings were had, viz.: CALL TO ORDER: Mayor Stevens announced that the meeting was being held in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551), and that discussion and actions are limited to the agenda items as posted. A quorum being present as evidenced by the presence 6 City Council Members were present: JOSH STEVENS Mayor HAYDEN DAAVIS Council Member - District 1 FRED VERA Council Member - District 2 GLORIA V. RODRIGUEZ Council Member - District 3 DANNY JACOBS Council Member - District 4 BOBBY G. GONZALES Council Member - - District 5 Mayor Pro tem JAMES GRAYSON Council Member - District 6 City staff members present at the meeting: JOE HINES CITY MANAGER BETTY CONDE CITY SECRETARY ABSENT RUSSELL CASSELBERRY CITY ATTORNEY Members of the press present at the meeting: Mary Elizabeth Members of the public present at the meeting: Foy O'Brian Sandy Trevino Irma Ramirez Wayne Chapman Norma Garcia Josh Peterson Larry Duyck Robert Ramirez Brian Beck INVOCATION: Bobby Gonzales DISCUSSION AND POSSIBLE ACTION OF AN INTERLOCAL AGREEMENT TO APPROVING PREMAGISTRATE HOUSING WITH DAWSON COUNTY, TEXAS. City Council to discuss an Interlocal Agreement to approve Pre-magistrate Housing with Dawson County, Texas. (City Manager) Motion by Council Member Bobby Gonzales to approve an Interlocal Agreement for Pre- magistrate Housing with Dawson County, Texas.. Motion seconded by Council Member Gloria Rodriquez and upon being put to a vote the motion passed. VOTING: "AYE"7 "NAY" 'ABSTAIN" ADJOURNMENT: The next regularly scheduled meetings of the City Council of the City of Lamesa will be February 18, 2025 at 5:30 P.M. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor THE STATE OF TEXAS K COUNTY OF DAWSON K CITY OF LAMESA K MINUTES OF THE CITY COUNCIL REGULAR CALLED MEETING: January 21, 2025 On this the 21st day of January 2025, at 5:30 P.M., there came on and was held a regularly called meeting oft the City Council ofthe City ofLamesa, Dawson County, Texas. Notice of such meeting having been posted at the City Hall at 601 South First Street in the City of Lamesa, Texas in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551). The following items were listed on the notice and the following proceedings were had, viz.: CALL TO ORDER: Mayor Stevens announced that the meeting was being held in accordance with the provisions of the Texas Open Meetings Act (Texas Govt. Code, Chapter 551), and that discussion and actions are limited to the agenda items as posted. A quorum being present as evidenced by the presence 7 City Council Members were present: JOSH STEVENS Mayor HAYDEN DAAVIS Council Member - District 1 FRED VERA Council Member - District 2 GLORIA V. RODRIGUEZ Council Member - District 3 DANNY JACOBS Council Member - District 4 BOBBY G. GONZALES Council Member - District 5 Mayor Pro tem JAMES GRAYSON Council Member - District 6 City staff members present at the meeting: JOE HINES CITY MANAGER BETTY CONDE CITY SECRETARY RUSSELL CASSELBERRY CITY ATTORNEY Members of the press present at the meeting: Mary Elizabeth Members of the public present at the meeting: Wayne Chapman Robert Ramirez Brian Beck Larry Duyck Josh Peterson Gabby Vogler Irma Ramirez Christian Candreva Sonia Robles Carter Sheldnicht INVOCATION: Bobby Gonzales CONSENT AGENDA: All consent agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member SO requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Information concerning consent agenda items is available for public review. a. APPROVAL OF THE MINUTES: Approval of the minutes of the City Council regularly scheduled meeting held on December 17, and December 30, 2024. b. BILLS FOR DECEMBER 2024: Approval of the bills paid by the City of Lamesa for the month of December 2024. Motion by Council Member Bobby Gonzales to approve Item 3 a and b. Motion seconded by Council Member Gloria Rodriguez and upon being put to a vote the motion passed. VOTING: "AYE" 7 "NAY" "ABSTAIN" PRESS REPORTER TO PRESENT AWARDS: Lamesa Press Reporter to present awards to the City of Lamesa. Gabby Vogler presented to Best Local and Best City Employee Brian Beck. HYPER REACH TECHNOLOGY SERVICES AGREEMENT: City Council to consider approving an agreement with Hyper-Reach Technology to provide services more fully described on "Exhibit A", emergency notification system service. (City Manager and Fire Chief Larry Duyck Motion by Council Member Bobby Gonzales to approve an agreement with Hyper-Reach Technology to provide services more fully described on "Exhibit A & B", emergency notification system service. Motion seconded by Council Member James Grayson and upon being put to a vote the motion passed. VOTING: "AYE"7 "NAY" "ABSTAIN" 2025 GENERAL ELECTION: Consider passing a resolution ordering and establishing procedures for the City of Lamesa General Election to be held on May 3, 2025. (City Secretary) Motion by Council Member Hayden Davis to pass a Resolution ordering and establishing procedures for the City of Lamesa General Election to be held on May 3, 2025. Motion seconded by Council Member Danny Jacobs and upon being put to a vote the motion passed. VOTING: "AYE"7 "NAY" ABSTAIN" RESOLUTION OF THE CITY OF LAMESA TEXAS REGARDING A JOINT ELECTION WITH LAMESA INDEPENDENT SCHOOL DISTRICT AND DAWSON COUNTY HOSPITAL DISTRICT: Consider passing a resolution approving a Joint Election Agreement between the Lamesa Independent School District, Dawson County Hospital District, and the City of Lamesa to share the use of Forrest Park Community Center at 814 S. Houston, Lamesa, Texas for holding elections on May 3, 2025. (City Secretary) Motion by Council Member Danny Jacobs to pass a resolution to approve a Joint Election Agreement between the Lamesa Independent School District, Dawson County Hospital District, and the City of Lamesa to share the use of Forrest Park Community Center at 814 S. Houston, Lamesa, Texas for holding elections on May 3, 2025. Motion seconded by Council Member Hayden Davis and upon being put to a vote the motion passed. VOTING: "AYE" 7 "NAY" ABSTAIN" RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAMESA AUTHORIZING CONTINUED PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR AND AUTHORIZING THE PAYMENT OF ELEVEN CENTS PER CAPITA TO THE STEERING COMMITTEE TO FUND REGULATORY AND LEGAL PROCEEDINGS AND ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY COMPANY, LLC: City Council to consider authorizing continued participation with the steering committee of cities served by Oncor and authorizing the payment of ten cents per capita to the steering committee. (City Manager) Motion by Council Member Hayden Davis to pass a resolution authorizing continued participation with the steering committee of cities served by Oncor and authorizing the payment of eleven cents per capita to the steering committee. Motion seconded by Council Member Bobby Gonzales and upon being put to a vote the motion passed. VOTING: "AYE" 7 "NAY" ABSTAIN" BUDGET AMENDMENT :: City Council to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to record receipt of the Weaver Grant for the Pumper Truck and Brush Truck expenditure) (City Manager & Finance) Motion by Council Member Bobby Gonzales to amend Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. Motion seconded by Council Member Danny Jacobs and upon being put to a vote the motion passed. VOTING: "AYE" 7 "NAY" ABSTAIN" BUDGET AMENDMENT I: City Council to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to record receipt of the Dawson County share of new Pumper Truck and Brush Truck expenditure) (City Manager & Finance) Motion by Council Member Danny Jacobs to amend Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. Motion seconded by Council Member Hayden Davis and upon being put to a vote the motion passed. VOTING: "AYE"7 7 "NAY" 'ABSTAIN" BUDGET AMENDMENT II: City Council to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to cover contracted medical expenses at Medical Arts Medical Hospital for persons arrested by City of Lamesa Police Department. (City Manager & Finance) Motion by Council Member Bobby Gonzales to amend Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. Motion seconded by Council Member Gloria Rodriguez and upon being put to a vote the motion passed. VOTING: "AYE"7 "NAY" "ABSTAIN" PUBLIC HEARING - NUISANCE PROPERTY REMOVAL OR DEMOLITION: Public hearing on substandard structure and public nuisance at address 1010 N 1st that is owned by Thomas R Gonzales & Pamela A Billick Gonzales. (City Inspector) The public hearing opened at 6:00 pm and closed at 6:04pm Brian Beck spoke concerning the property at 1010 N 1st NUISANCE PROPERTY REMOVAL OR DEMOLITION: Consider passing a resolution finding the structure located on the above property to be uninhabitable, deteriorated, dangerous, and a substandard structure, which constitutes a public nuisance within the terms of the Substandard Building Ordinance of the City of Lamesa and ordering the removal or demolition of such substandard structure. (City Inspector) Motion by Council Member Bobby Gonzales to pass a resolution using: D Option 1 - That the abatement by removal or demolition as provided herein shall be caused by the owners of such property not later than thirty (30) days from the date of this resolution regarding substandard structure and public nuisance at 1010 N 1st, owned by. Thomas R Gonzales & Pamela A Billick Gonzales. Motion seconded by Council Member Gloria Rodriguez and upon being put to a vote the motion passed. VOTING: "AYE"7 7 "NAY" ABSTAIN" PUBLIC HEARING - NUISANCE PROPERTY REMOVAL OR DEMOLITION: Public hearing on substandard structure and public nuisance at address 1007 N Avenue Q that is owned by Charles Frank Hinkle & Victoria Hinkle. (City Inspector) The public hearing opened at 6:06pm and closed at 6:09pm Brian Beck spoke concerning the property at 1007 N. Ave Q NUISANCE PROPERTY REMOVAL OR DEMOLITION: Consider passing a resolution finding the structure located on the above property to be uninhabitable, deteriorated, dangerous, and a substandard structure, which constitutes a public nuisance within the terms of the Substandard Building Ordinance of the City of Lamesa and ordering the removal or demolition of such substandard structure. (City Inspector) Motion by Council Member Hayden Davis to pass a resolution using: Opticn 1 - That the abatement by removal or demolition as provided herein shall be caused by the owners of such property not later than thirty (30) days from the date of this resolution regarding substandard structure and public nuisance at 1007 N Avenue Q, owned by Charles Frank Hinkle & Victoria Hinkle. Motion seconded by Council Member Danny Jacobs and upon being put to a vote the motion passed. VOTING: "AYE"7 "NAY" "ABSTAIN" DISCUSSION AND POSSIBLE ACTION OF AN INTERLOCAL AGREEMENT TO APPROVING PREMAGISTRATE HOUSING WITH DAWSON COUNTY, TEXAS. City Council to discuss an Interlocal Agreement to approve Pre-magistrate Housing with Dawson County, Texas. (City Manager) Motion by Council Member Bobby Gonzales to approve an Interlocal Agreement for Pre- magistrate Housing with Dawson County, Tx... Motion seconded by Council Member Danny Jacobs and upon being put to a vote the motion passed. VOTING: "AYE" 3 "NAY" 4 ABSTAIN" CITY STAFF REPORTS: a. POLICE CHIEF REPORT: Police Chiefi to report on the city's recent events: b. FIRE CHIEF REPORT: Fire Chief to report on the city's recent events: C. UTILITIES DIRECTOR REPORT: Utilities Director to report on the city's recent events. d. GOLF COURSE REPORT: Golf Course Superintendent to report on conditions and events at the Golf Course e. MUNICIPAL COURT: Municipal Judge report FINANCIAL REPORT: Finance Director to report on the city's finances. CITY MANAGER REPORT: City Manager to report on current activities and answer questions from the City Council. MAYOR's REPORT: Mayor to report on current activities. ADJOURNMENT: The next regularly scheduled meetings of the City Council of the City of Lamesa will be February 18, 2025 at 5:30 P.M. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 4 SUBJECT: OPEN AND AWARD BIDS = 2004 K-PAC VERTICLE BALER PROCEEDING: SUBMITTED BY: City staff EXHIBITS: AUTHORITY: SUMMARY STATEMENT City Council to open and award bids for the sale of a 2004 K-Pac Vertical Baler. (City Manager) COUNCIL ACTION DISCUSSION: Motion by Council Member to award bid to for the sale of a 2004 K-Pac Vertical Baler. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 5 SUBJECT: OPEN AND AWARD BIDS - 1993 AM GENERAL 2.5 TON 6X6 MILITARY SURPLUS FIRE TRUCK 3116 CATERPILLAR ENGINE: PROCEEDING: SUBMITTED BY: City staff EXHIBITS: AUTHORITY: SUMMARY STATEMENT City Council to open and award bids for the sale of a 1993 AM General 6x6 Army Surplus Fire Truck.(Larry Duyck, Fire Chief) COUNCIL ACTION DISCUSSION: Motion by Council Member to award bid to for the sale of a 1993 AM General 6x6 Army Surplus Fire Truck. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 6 CRMWA UPDATE SUBJECT: PROCEEDING: Presentation SUBMITTED BY: City staff AUTHORITY: SUMMARY STATEMENT City Council to hear a presentation from Cris Norris on Canadian River Municipal Water Authority future water projects and acquisitions. (Cris Norris) DISCUSSION CRMWA Canadian River Municipal Water Authority Sanford, Texas SANFORD DAM AND LAKE MEREDITH CONSTRUCTED BY BUREAU OF RECLAMATION DEPARTMENT OF THE INTERIOR FOR THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY Annual Comprehensive Financial Report Fiscal Year Ended September 30, 2024 Municipal P 2 E E E E 5 - MWA / * Since 1953 * * * Canadian River Municipal Water Authority P.O. Box 9, 9875 Water Authority Road Sanford, Texas 79078 Phone (806) 865-3325 Fax 865-3314 (806) CRMWA www.crmwa.com / / EXECUTIVE COMMITTEE Richard Ellis, President Tyke Dipprey, Vice-President Drew Satterwhite, General Mgr. and secretary-Treasurer MEMBER CITIES DIRECTORS CANADIAN RIVER MUNICIPAL AMARILLO William Hallerberg WATER AUTHORITY Roy Urrutia BORGER Glendon. Jett Eddie Edwards Annual Financial PAMPA Comprehensive Report Jerry Carlson Mac Smith October 1, 2023 - September 30, 2024 PLAINVIEW Tyke Dipprey V.O. Ortega LUBBOCK James Collins Jay House SLATON Mark Meurer TAHOKA Jay Dee House O'DONNELL Charles Vaughn LAMESA Cris Norris BROWNFIELD Rickey Dunn LEVELLAND Richard Ellis Ryan Hall Prepared by: Financial Services Division TABLE OF CONTENTS Page Introductory Section Letter of Transmittal. 1 GFOA Certificate of Achievement. 17 Organization Chart 18 Financial Section Independent Auditors' Report. 20 Management's Discussion and Analysis 24 Basic Financial Statements: Statement of Net Position 35 Statement of Revenues, Expenses, and Changes in Net Position 36 Statement of Cash Flows 37 Notes to Financial Statements 39 Supplementary Information Schedule of Revenues, Expenses, and Changes in Net Position - Budget to Actual 62 Statistical Section (Unaudited) Financial Trends: Net Position by Component 65 Statement of Revenues, Expenses, and Changes in Net Position 66 Revenue Capacity: Historical Water Deliveries to Member Cities (Calendar Year). 67 Debt Capacity: Ratios of Outstanding Debt by Issue 68 Demographic and Economic Statistics: Member City Population 69 Assessments to Member Cities 70 Principal Employers of Member Cities 71 Principal Water Customers of the Member Cities 72 Full-time Equivalent Employees by Division 73 Lake Meredith Watershed Area 74 Lake Meredith 75 Lake Meredith Elevations and Storages. 76 Aqueduct System 77 Historical Inflow (Calendar Year).. 78 Historical Depth / Storage (Calendar Year) 79 Operating Information: Historical Costs (Fiscal Year). 81 Member Cities' Water Allocations (Fiscal Year). 82 General Operation and Maintenance Budget Comparison 83 CRMWA Budget Summary FY22/23 83 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 85 Introductory Section Municipal a bl D P E - a 5 - - CRMWA - / * Since 1953* * * * * Canadian River Municipal Water Authority P.O. Box 9, 9875 Water Authority Road * Sanford, Texas 79078 Phone (806) 865-3325 CRMWA G Fax (806) 865-3314 www.crmwa.com January 2, 2025 EXECUTIVE COMMITTEE Members of the Board, Bond Rating Agencies, Bond Agents, and Member City Management Richard Ellis, President Canadian River Municipal Water Authority Tyke Dipprey, Vice-President Drew Satterwhite, General Mgr. and! Secretary-Treasurer Canadian River Municipal Water Authority's (the Authority) bylaws require an audit of the financial records to be completed within ninety (90) days after the end of each fiscal year. This MEMBER CITIES Annual Comprehensive Financial Report (ACFR) of the Authority for the fiscal year ended DIRECTORS September 30, 2024, is submitted to fulfill that requirement. This report is also published to provide our customers, the Authority Board, the member cities, and thei investment AMARILLO community William detailed information about the financial condition and operating results of the as Hallerberg Authority Roy Urrutia measured by the financial activity of the Authority. BORGER Glendon Jett Management assumes full responsibility fori the completeness and reliability of the information Eddie Edwards contained in this based a framework PAMPA report, upon comprehensive of internal control that it has Jerry Carlson established for this purpose. Because the cost of internal control should not exceed anticipated Mac Smith benefits, the objective is to provide a reasonable, rather than an absolute, assurance that the PLAINVIEW financial statements are free of any material misstatements. We believe that the Authority's Tyke Dipprey internal controls adequately safeguard assets and provide reasonable assurance of proper V.O. Ortega LUBBOCK recording of financial transactions. James Collins Jay House Doshier, Pickens & Francis, LLC, Certified Public Accountants, has issued an unmodified opinion SLATON on the Authority's financial statements for the year ended September 30, 2024. The Mark Meurer independent auditors' report is located at the front of the financial section of this TAHOKA report. Jay Dee House O'DONNELL The Management's Discussion and Analysis (MD&A) immediately follows the independent Charles Vaughn auditors' report and provides a narrative introduction, overview, and analysis of the basic LAMESA financial statements. The MD&A complements this letter of transmittal and should be read in Cris Norris BROWNFIELD conjunction with it. Rickey Dunn LEVELLAND Richard Ellis Ryan Hall -1- Profile of the organization The Authority is a political subdivision of the State of Texas, a conservation and reclamation district organized and functioning pursuant to Article 16, Section 59, of the Texas Constitution, under Chapter 243, Acts of the 53rd Legislature Regular Session, 1953, as amended, formerly codified as article 8280-154 of Vernon's Annotated Texas Civil Statutes (the "Enabling Act"). The Authority is financially accountable for CRMWA Corporation, a not-for-profit corporation created in the State of Texas, authorized to operate in New Mexico to facilitate the construction and operation oft the Salinity Control Project. CRMWA Corporation is presented as a blended component unit within this ACFR. The Authority was created on May 27, 1953, for the purpose of providing a source of water supply for municipal, domestic and industrial use and for the transportation of such water to its 11 member cities located in the Texas Panhandle and South Plains. Lake Meredith and the John C. Williams Wellfield are the Authority's two primary water resources. Member cities include: Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O'Donnell, Pampa, Plainview, Slaton and Tahoka with a combined population of 559,853 in 2024. JOHN C WILLIAMS B f WELLFIELD LAKE MEREDITH 1 RESERVOIR - BORGER A C - CANADIAN RVER EA AA 4 UTE RESERVOIR a PAT MPA - ad. - LAKEI MEREDITH SALINITY CONTROL PROJECT "AMAR RILLO PLAINVIEW LEVELLAT ND n LUBBOCK SLATON John C. Williams Wellfield BROWNFIELD TAHOKA Member Cities CRMWAI Pipeline O'DONNELL Ute Reservoir Lake Meredith 0510 20 30 - Miles 4 CRMWA Water Rights LAME SA 1 -2- The Authority operates under a Board of Directors elected by a majority vote of the governing body of each member city. The Board of Directors shall consist of two directors from each member city having a population of 10,000 or more and one director from each member city having a population of less than 10,000, according to the preceding Federal Census. Board members serve two-year terms and must be a qualified voter and a property-owning taxpayer in the city from which they are elected and must not be a member of the governing body or an employee of such city. The Board hires the General Manager and may accord such person full power and authority in the management and operation of the Authority, subject only to the orders of the Board. The budget fort the operating fund is adopted annually by the Board of Directors on a basis consistent with GAAP except for depreciation expense, which the Authority has elected to not include in the formal budget. Formal budgetary integration is not employed for debt service or construction because those are set by separate action and do not normally change on an annual basis. However, debt service requirements are included in the budgetary data provided to each city at the time of consideration of the proposed operating Budget each year. Unbudgeted operating expenditures in excess of $50,000 must be approved by the Board of Directors. The General Manager's legal level of budgetary control is at the Authority's level; therefore, the Board of Directors does not need to approve nominal reallocations within the Authority's budget as a whole. Management of the organization The Authority has operated under the strong leadership of three General Managers since inception. The first General Manager started in July 1968 as the operations and maintenance of Sanford Dam project was transferred from the U.S. Bureau of Reclamation (USBR) to the Authority. Over his tenure, he was instrumental in being the visionary necessary to guide the Authority through the various opportunities and challenges that arose. One of those challenges that would give him nightmares what if there is no more usable water in the lake? In 1992, Congress authorized the Lake Meredith Salinity Control Project (LMSCP). Bonds were sold to finance LMSCP in 1999 and it was placed in operation in 2001 to address water quality. (See discussion on page 12 for additional information.) In 1996, the Authority began purchasing water rights in Roberts County as part of the groundwater supply project. On March 22, 2000, groundbreaking for the Groundwater Supply Project was held in a special meeting. The Directors unveiled a plaque dedicating the project and naming the facilities "The John C. Williams Aqueduct and Wellfield." In November 2001, after 33 years with the Authority, John Williams retired as General Manager. In December of 2001, the John C. Williams Aqueduct and Wellfield was placed in operation providing about 35% of the total water demand of the member cities. (See page 67 for a graph showing when the wellfield came online and allocation of lake VS groundwater usage to date.) The Board of Directors then selected the second General Manager, Kent Satterwhite, who had been the Deputy General Manager from 1990-2001. In addition to dealing with on-going legislative and legal challenges, opportunities arose in 2003 to pursue purchasing additional groundwater rights as well as expand the existing wellfield. By the end of 2009, the Authority had signed contracts covering 260,000 acres of water rights making the Authority the largest water rights holder in the state. A wellfield expansion was completed in 2010 with the addition of 15 high-capacity wells, making a total of 44 wells available, capable of supplying about 69,000 acre-feet annually. In late 2011, the Authority purchased 211,000 acres of water rights from T. Boone Pickens. This purchase nearly doubled the Authority's water right holdings making it the largest water rights owner in the nation. The Authority was able to purchase additional water rights since 2011 and now has a total of just over 456,000 acres. (See page 7 for additional information regarding the Authority's water rights) As General Manager, he was instrumental in being the visionary necessaryto guide the Authority through the various opportunities and challenges that arose. In 2013, the Authority's board of directors approved a routing study and purchase of pipeline right-of-way for an additional groundwater transmission pipeline. The new line would at least double the current capacity of the Authority's groundwater project and is being referred to as CRMWA II. (See the discussion of CRMWA II on page 15 for further details). Route planning for the project is complete and purchasing of pipeline easements is on-going. As of October 30, 2022, after 32 years with the Authority, Mr. Satterwhite decided the time was right for him retire. -3- On October 31, 2022, the Authority welcomed Drew Satterwhite as the third General Manager of the Authority. Drew is a Civil Engineer, as were the two previous General Managers, and has been in the Texas water business since 2009. He started his career with the North Texas Municipal Water District which provides wholesale water and wastewater services in the Dallas-Fort Worth Metroplex. Beginning in 2013, Drew was the General Manager of the Greater Texoma Utility Authority, North Texas Groundwater Conservation District, and the Red River Groundwater Conservation District. He began his tenure with CRMWA on October 31, 2022, and has begun to successfully guide the Authority into its next era. Chad Pernell is the Authority's Deputy General Manager hired October 26, 1997. Chad is also a Civil Engineer who has been instrumental in helping the General Managers guide the Authority through the various opportunities and challenges that have arisen and will be integral in successfully guiding the Authority into its next era. Challenges in the last several years have related to water quality/supply, drought planning, COVID, legislative action, aging infrastructure, and budgetary constraints. That said, due to the visionary work by the Board of Directors and the General Managers to guide the Authority into the next era, the Authority is in a position of having the water rights available and infrastructure in place to be able to supply water to the member cities for many decades to come. Chad Pernell Kent Satterwhite John Williams Drew Satterwhite Deputy General Manager Deputy General Manager General Manager General Manager 1997-Current 1990-2001 1968-2001 2022-Current General Manager 2001-2022 4- Water. Statistics Lake Meredith As of september 30, 2024, the water in Lake Meredith stood at a nominal depth of 75.28 feet (Elev. 2888.28 feet above mean sea level (MSL)), having decreased 3.88 feet since September 30, 2023. The Lake now contains 237,020 acre-feet of water. Total inflow for the fiscal year was 35,616 acre-feet. Evaporation during this fiscal year has been estimated at 51,242 acre-feet. During the year, deliveries to member cities and their customers amounted to 67,512 acre-feet, with 16,862 acre-feet coming from Lake Meredith and 50,650 acre-feet from the John C. Williams Wellfield. 600,000 Septembber 1972 542,730 Acre-ft 101.65 ft Lake Meredith - Historical Storage 500,000 400,000 September: 2024 237,020 Acre-ft 75.28 ft 300,000 200,000 100,000 -5- Lake Meredith Historical Inflow 280,000 260,000 240,000 220,000 200,000 a 180,000 September 2024 35,616 Acre-ft 160,000 140,000 AVGI Inflow1965-2000 120,000 14-year Drought of Record 100,000 80,000 60,000 AVGI Inflow 2001-2023 40,000 20,000 00,0 Lake Usage vs Evaporation 90,000 (Calendar Year) D Lake Usage a Yearly EvapAF 80,000 70,000 60,000 a September: 2024 U 51,4244 Acre-ft 50,000 e 40,000 30,000 20,000 10,000 : 5 E E E E 5 E * : - : * e : IITETTE : E : mmm a s -6- Groundwater Due to continued lack of inflow into Lake Meredith, the reliability of water from the lake has been severely impacted resulting in increased reliance on groundwater. The Authority currently relies heavily on the John C. Williams Wellfield as the source fori the groundwater supply. The Authority's total holdings of water rights is over 456,000 acres in Roberts and adjacent counties. As shown on the map below, only a fraction of these rights are developed. The current capacity of the transmission system from the Roberts County well field is 65 million gallons per day (MGD) and the Authority can deliver up to 69,000 acre-feet per year. The existing well field capacity is 74.8 MGD. The Authority is proceeding to expand the groundwater production and delivery capacity in order to meet member cities' demand. Those water rights, in conjunction with the existing Canadian River Project Supply, will provide the Authority's 11 members with an abundant water supply that is expected to be available for over 100 years. Water Rights CRMWA Water Rights and Wellfields Original System Groundwater System Ochiree lipscome Wells N N Rhver S an bare Paitchinson . Hmphill es eder es Hee Ava Borger Pampa Carsor Vieler -7- The chart below shows the total capacity of the wellfield each year. In 2001, 27 wells were put into production (Phase I) and total capacity was near 50 MGD (or 55,000 acre-feet per year). Capacity continued to drop slightly each subsequent year due to use until 2008 when 2 new wells (Phase 2) were brought online. In 2010 and 2011, Phase 3 was completed, adding 15 more wells for a total of 44 wells. This brought the capacity to 88 MGD. Capacity of the current well field(s) continue to drop slightly each year due to use bringing current capacity to 74.8 MGD. Wellfield Capacity 95.0 110,000 90.0 85.0 100,000 80.0 Capacity of All Wells (74.8 MGD) 90,000 75.0 - - - - - - - - - - - - - - - 70.0 Operational Wells (71.71 MGD) 80,000 65.0 Pipeline Capacity (65 MGD) 60.0 - - - - - - - - - - - - 70,000 - - - I - - - - - - 55.0 - - - - - - - - - - - I - - - a 50.0 60,000 E - - I - - - I 45.0 * - - 50,000 40.0 A I 35.0 40,000 30.0 25.0 30,000 20.0 20,000 15.0 10.0 10,000 5.0 0.0 s o h p gP 8o ge a Phase 1 Wells - Phase 2 Wells Phase 3 Wells The Authority is currently in the process of constructing four new wells. It is expected that these wells will add about 6 MGD of production. This production will help offset capacity that has been, and will be, lost due to water table declines. The Authority strives to maintain a total well capacity in excess of the pipeline carrying capacity to ensure we always have enough water to maximize the flow of groundwater to our member cities. This project is anticipated to be completed during the summer of 2025. -8- LAKE MEREDITH - Drought Planning Projections based on Drought of Record Inflows 100 100 95 = Lake Depth 95 - HistoricalA Average Inflow (103,970 AF/Mr) Lake Depth 75.28f ft 90 - 14-Year Droughto of Record (41,233 AF/r) 2024 Pumping 12,178 AF 90 85 36-Month Drought of Record(5,933. AF/r) 2024 Evaporation 43,585 AF 85 - Olnfiow - 80 - - a 80 75 75 70 u3 so o o 70 ae o o 00 00 65 00, % 65 9o 60 2nd Gate 9o 0o0 60 € o - 55 o o 55 o 50 : 50 I 45 Start Lowl Level Pumps 45 -11 40 1st Gatel 40 35 35 Min Pumpingl Level 30 30 25 25 20 20 15 15 Approx. Bottom ofLake 10 2017laee 9,647A AFLake 2018hae Lake 2019Uage 2020Lage 2021Uaare 2022Vaare 2023Lhace 2024A Allocation a 20254 Alloctions 2026 lloca a B 10 5 57,274AFWeis 50,645AFV 17,931AFL Wells 14,667AF 47,059AFW Lake Wels 17,323AF Wells Lake 14,181AF Lake 15,422AF Lake 17,252AFL Lake 22,000AFlake 18, 000AFLake 18 000AF Lake 5 66,921AFT Total 68,576AFT Total 61,729A AFT Total 51,412AF 68,735AF Total 53,628AFV 67,809A AF Wells Total 57,164AF 72,586AF Wells Total 52,518AF 69,771AF Wels Total 89, 69, ,000A 000AF AF Total Wils 69,000AFV 37, 000AF Wells Total 69,000AF 37, 000AF Wells Total 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 The above graph reflects potential future drought conditions and is used to forecast the allocation between surface water (Lake) and groundwater (Wells), which in turn determines how City allocations may be impacted (Total). Currently, 20,000 acre-feet of surface water is to be allocated during the fiscal year ending September 30, 2024, leaving 69,000 acre-feet of groundwater to be allocated to member cities. This allocation could change if higher than expected inflows are experienced during the year. -9- Long-term financial planning and major project initiatives Well System Tanks Re-Coating Projects The John C. Williams Well Field System (well field and aqueduct) was completed in 2001. This system contains four (4) pumping plants that convey the groundwater to the main aqueduct where it blends with lake water. In total, there are six (6) ground storage tanks associated with these pump stations that are operating with the original 23-year-old coatings. These coatings have a 20-year estimated lifespan per manufacturer. The recoating of these tanks is critical to ensure the steel tanks are protected from corrosion to extend their useful life. The Authority engaged an engineering firm to provide design and bidding services for this work. The construction contract was awarded in mid-2024. This project is currently underway and is anticipated to be completed during the summer of 2025. -10- Salt Cedar Control Project The objectives of the Salt Cedar Control Project are to: 1) increase the flow in the Canadian River and its tributaries within the Lake Meredith watershed, 2) increase water quality in the Canadian River and 3) create a better habitat for the Arkansas River Shiner, which is Federally listed as a threatened species and Peppered Chub which is Federally listed as an endangered species. In 2024, the Authority completed its twentieth year ini its Salt Cedar Control project, spraying 542 acres of salt cedar with a total of 37,317 acres treated to date. (See the map below that shows the areas treated for salt cedar along the Canadian River since 2004.) The Authority will continue the salt cedar maintenance as necessary. Treated 2024 (Dallam sfo Treated 2004-2023 4 Union Hartley Moore utchinsd Lake Meredith Harding Utel Reservoir s Oldham Carson Quay Deaf Smith Randall mstron Curry -11- Lake Meredith Salinity Control Project (LMSCP) The Salinity Control Project was constructed in 2001 and is designed to improve the quality of water in Lake Meredith by intercepting brine water that is leaking into the Canadian River near Logan, New Mexico. An area in New Mexico just downstream from Ute Dam near Logan was identified as being a major contributor of saline water to the Canadian River System. Studies by the Bureau of Reclamation and consultants indicate that about 70 percent of the chlorides reaching Lake Meredith originate in this localized area, filtering into the river channel from a shallow brine aquifer that is under artesian pressure. Water in the brine aquifer is roughly as salty as seawater. Because salt is "stored" in the river channel sand between Lake Meredith and Logan, the extent of benefit will depend upon climatic conditions and stream flow. Though the Authority is not currently using as much surface water from Lake Meredith, the continuation oft the project is important. The goal of the project is to reduce the amount of brine entering the river and ultimately Lake Meredith. After 23 years of operations, the Authority performed a study to evaluate the effectiveness of the project. The study will focus on the quantity of chlorides removed from the Canadian River, how it can be improved and the long-term effects on Lake Meredith. Phase I of this study was completed in early 2023. Phase II of this study began in 2024. A completion date for Phase Il is not known at this point as the data collection efforts in the riverbed may take up to two years which would then be followed by analysis of the data. The Authority applied for and received grant funding from the United States Bureau of Reclamation for the upcoming and future phases of the Salinity Control Project Evaluation. The grant includes this project, as well as the Lake Meredith Desalination Feasibility Study (discussed below). The grant includes a 50% match (up to $1 million) for these projects. Lake Meredith Desalination Feasibility Study The Authority has selected an engineering firm to conduct a desalination feasibility study as a water supply strategy to meet water demands for our member cities. The Bureau of Reclamation constructed Sanford Dam in 1965. Lake Meredith is estimated to have supplied over half a trillion gallons of water to communities in the semi-arid Panhandle and South Plains since its construction. Due to a lack of rainfall in the Canadian River watershed and the subsequent reduction of inflow to Lake Meredith, water has never been released from Sanford Dam. Low inflows and prolific salt sources upstream resulted in high salinity contributing to the rise in chloride content. The chloride concentration is currently more than three times higher than the Federal secondary drinking water standard, which limits the amount of water that can be delivered to our member cities. A desalination feasibility study to evaluate removing chloride from the water will enable the Authority to assess the potential to produce more lake water, while using existing infrastructure (dam, pump stations, and pipelines). Desalination would reduce the amount of water the Authority has to produce from the Ogalala Aquifer, which is a non-renewable resource being mined at a much faster rate than it is being replenished/recharged. Desalination is being studied as a strategy that would defer the need of CRMWA II and bridge the gap in needs VS. supply. (See the discussion of CRMWA II on page 15 for further details.) An engineering consultant has been selected and the Phase I work began in 2024. If results from the Phase I work indicate that a capital project may be feasible, then we anticipate continuing the engineering study with an additional phase. This project is partially funded by the United States Bureau of Reclamation grant as noted above. -12- Zebra Mussel Strategy Invasive mussels negatively impact the natural ecology, which can be detrimental to native and endangered species, including native mussel and fisheries. They also damage infrastructures such as those in and around Sanford Dam. The Authority performs all maintenance of Sanford Dam and its infrastructures. In addition, Lake Meredith is centrally located in the country which makes it a gateway to the west, therefore keeping zebra mussels out of our lake could potentially help in stopping their spread to the "un-infested west. " Invasive zebra mussels are prolific breeders and settle on water facility infrastructure such as water intakes, trash racks, gates, pumps, and pipelines. The Authority regularly exercises the gates on Sanford Dam, but biofouling of mussels could result in a gate not sealing, or closing properly, which may cause long term or permanent damage. Azebra mussel infestation at our lake could restrict water passing through the trash racks to the intake structure reducing flow to the pumping plant. The Authority operators rotate daily delivery through the five pumps at pumping plant #1. Pumps that sit fore extended periods of time are more susceptible to mussel attachment. Zebra mussels that attach to the inside of pipelines increase friction and restrict the pipeline size subsequently reducing flow and increasing pumping costs. It is possible that Zebra mussels could settle in the seals and seats of air valves and blow-offs along the pipeline which could impact long term integrity of the pipeline and could prevent proper sealing causing a valve to leak. Lake Meredith is currently free of zebra mussels and has had an early detection plan in place for the past six years that consists of sample locations near the Sanford Yake boat launch, the Fritch Fortress boat launch and the Intake structure. Sampling is conducted four times per year, two by United States Geological Survey (USGS) personnel and two by the Authority's personnel. Sampling includes three plankton trawls for veligers and one for eDNA at each site. Also, a temperature, specific conductance, dissolved oxygen & pH profile is collected from 50 foot or the bottom of the lake, whichever is shallower. In addition to water sampling, four passive samplers are checked during each sampling event. The Authority also works closely with United States Bureau of Reclamation personnel providing maintenance and instrument readings on Sanford Dam. In 2024 the Authority applied for and received a grant from the Department of the Interior. Part of this grant fully funded the purchase of two (2) zebra mussel cleaning stations. In cooperation with NPS, these two cleaning stations have been placed at strategic locations leading up to the most visited boat launching ramps at Latke Meredith. These cleaning stations allow boaters to clean and dry their boats before they enter the lake (and as they leave) which may help prevent, or delay, zebra mussels being introduced to Lake Meredith. The remaining funds will be used to pay for zebra mussel inspections by the Working Dogs for Conservation program to perform boat inspections for four weekends during the summer months of 2025 in partnership with the National Park Service (NPS). o 8 UNITED o USGS 3,34 9 Data collected during the June 2023 inspection weekend show boater origin (yellow lines) and locations of lakes infested with zebra and quagga mussels (blue & green cirdles). -13- Future Water Supply Initiatives The Texas Water Development Board adopted the 2022 State Water Plan (the Plan) in July 2021. The Plan is based on projections indicating that the population will continue with its rapid growth. Based on these population projections, a total population growth in the member cities of about 52 percent is projected during the 50-year period from 2020 to 2070, with Amarillo, Lubbock and Pampa showing the greatest increase in population during this time period. The estimated population of the member cities is expected to increase gradually to an aggregate of nearly 883,831 by the year 2070. Current member cities' water needs are at 37 billion gallons per year ("BGY") with the Authority currently able to supply only 22.5 BGY (69,000 acre-feet) and the remaining amount being provided by groundwater wells or other resources owned by the member cities. Because droughts have reduced the ability of Lake Meredith to provide a constant supply of water, the Authority has expanded its existing wellfield capacity to the maximum capability of existing transportation infrastructure and has purchased additional groundwater resources in the Panhandle of Texas. Further increases in groundwater delivery capability will require construction of additional aqueduct capacity. (See the discussion of CRMWA II on page 15 for further details.) CRMWA Member Cities - Historical Usage 140,000 130,000 120,000 - - 110,000 Ea 100,000 City Supply 90,000 80,000 70,000 60,000 50,000 40,000 CRMWA Lake Meredith CRMWA Wells 30,000 20,000 10,000 E : E E - : - e e - : E C E E E : E E E 8 E E E E E I E : : 8 a € o 8 o 2 S o S o & S € o & - o à E à o 3 E : a E -14- CRMWAI II Based on our recent/current 24-year drought, the reliability of Lake Meredith as a source of water supply is in question. In addition, water quality requirements currently limit the available supply of lake water to approximately 25% of the total supply delivered to our member cities. This is prompting the Authority to more fully utilize its groundwater resources. The groundwater infrastructure connects with the original surface water system for delivery to the cities. The current groundwater infrastructure can supply only enough water to utilize about half of the original surface water system's delivery capacity. This means that the original aqueduct system is currently underutilized due to the limited lake water availability. Therefore, the cities are relying more heavily on their own limited local resources. The needs VS. supply gap may widen even more over time without either replenishment of the surface water supply (Lake Meredith) or additional groundwater infrastructure. CRMWA II is a proposed project to close the gap in needs VS. supply. It would consist of additional aqueduct infrastructure to bring more groundwater to a point in Amarillo where it could be introduced into the original surface water delivery system. The Authority has engaged an engineering firm, HDR, to build a Water Supply Plan. The primary purpose of the Water Supply Plan is to inform CRMWA and our member cities about when the demands and supplies may reach a point to necessitate the next water supply project (CRMWA II as an example). The commencement date of the project will be discussed collectively by the member cities following the conclusion of the Water Supply Plan. The study has been completed proposing the route for this new pipeline which totals about 70 miles in length. The study focused on the following: most economical route for construction, access and maintenance, possible environmental obstacles, possible archeological obstacles, etc. The purchase of easement or right of way is ongoing and is expected to be completed during the next fiscal year. Dallam m Hansfon Ochitre a € Existing Groumd Water Pipeline Water Rights RopD Marding Hartley or LakeN Meredth * e Borger Ute Reservoir . - Pampa + Oldham Amarillo Proposed Ground Water) Pipeline Lake Meredth (CRMWAD) Salinity Control Project DeafSmith istrong Donley Colin ingsi OricisalPipeline 967) DN 1y Pan er Castro Briscoe Hail Chidres a Plainview Sale ay Lam no Royd Mbdley Codle 8 Levelland, * a Crosby Dickens King Lubbock Slaton Brownfield" Tahoka Gara Kent O'Donnel ines à Lamesa Borden ury Fis 40 Mles bchel -15- Conjunctive Use Strategy The Authority's conjunctive use strategy utilizes the primary water sources (Lake Meredith and the John C. Williams Wellfield) in a manner that most efficiently manages and delivers water to the member cities. The Authority's water delivery system is designed to utilize and deliver both sources of water, however, due to limitations in supply availability and the capacity ofthe existing delivery systems, the ability to meet member cities' supply needs is limited. In addition to infrastructure projects such as CRMWA II and the construction of additional wells to replace lost wellfield capacity, the Authority's conjunctive use strategy consists of three major components to help address member city supply needs: Supply from Lake Meredith in years when available Control of invasive brush within the Lake Meredith watershed (Salt Cedar Control Project) Aquifer storage and recovery of supplies in excess of demands. When there are inflows to the lake, the Authority utilizes this source for water supply and reduces groundwater usage. Increasing the use of lake water helps reduce wellfield pumping and energy costs and more importantly prolongs groundwater supplies with the use of renewable surface water. It also provides a beneficial use of water that otherwise would have been lost to evaporation. Ast the Authority develops additional wellfield capacity ini the John C. Williams Wellfield and constructs the new CRMWA II pipeline, the quantity of water that can be transported from the wellfield will increase substantially. To ensure that the system is being used as efficiently and effectively as possible to meet member cities' demands, storage options need to be considered. During non-peak periods, the capacity of the transmission system is underutilized; yet during peak demand months, the ability to meet member cities' peak demands may be limited. To address the need for increased peaking capacity in the water delivery system, available water from Lake Meredith and the John C. Williams Wellfield could be treated and stored by the member cities during non-peak periods for future use during peak times. This strategy proposes to store excess non-peak water through an Aquifer Storage and Recovery program (ASR) that will utilize existing wellfields and infrastructure. The Authority will continue to work with the member cities to determine the most advantageous and affordable option(s) for all. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Canadian River Municipal Water Authority for its Annual Comprehensive financial report for the fiscal year ended September 30, 2023. This was the 13th consecutive year that the Authority has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We are pleased to present this report to the Board for formal adoption. Respectfully submitted, - Chaalinse Drew Satterwhite Chad Pernell General Manager Deputy General Manager -16- OA - Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Canadian River Municipal Water Authority Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Chubpk P. Movill Executive Director/CEO -17- CRMWA Organization Chart BOARD OF DIRECTORS General Manager / Secretary Treasurer Chief of Administrative Services Executive Assistant Deputy General Manager NORTHERN OPERATIONS DIVISION WATER QUALITY DIVISION FINANCIAL SERVICES DIVISION Chief of Operations Chief of Water Quality SOUTHERN OPERATIONS DIVISION Financial Officer Chief of Operations Accountant MaintenanceTech III (2) Accounting Clerk Operations Branch CRMWA Corp. General Maintenance Branch Control Room Supervisor Maintenance Tech IV General Maintenance Foreman Control Room Operator (4) Maintenance Tech III MaintenanceTech II Maintenance Tech (2) Fectria/instrumentaion Branch E/II Maintenance Foreman Ektia/mstrumentaion Branch E/ITechnician II E/I Maintenance Foreman E/ITechnician I(3) E/1 Technician II Mechanicall Maintenance Branch Pump Maintenance Foreman Maintenance Tech III MaintenanceTech "(3) TOTAL EMPLOYEESI INC ORGANIZATION 45 -Full-time CRMWA/CRMWA Corp positions Dam & Aqueduct Maintenance Branch General Maintenance Foreman Seasonal positions MaintenanceTech I(2) MaintenanceTechi(3 Wellfield Maintenance Branch Wellfield Maintenance Foreman MaintenanceTech I(2) MaintenanceTech I(1) -18- Financial Section Municipal A E - E E 5 - MWA / * Since 1953 * * * P U DOSHIER, PICKENS & FRANCIS, LLC CERTIFIED PUBLIC ACCOUNTANTS 301 S. Polk, Suite 800 P.O. Box 9938 IF Amarillo, TX: 79105-5938 806.373.3011 Fax: 806.376.8126 www.dpicpa.com To the Board of Directors Canadian River Municipal Water Authority Sanford, Texas INDEPENDENT AUDITORS' REPORT Opinion Wel have audited thei financial statements oft the business-type activities ofthe Canadian River Municipal Water Authority (the Authority), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities of the Authority as of September 30, 2024, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management, for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance ofinternal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher -20- than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority'si internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis on pages 24 - 33 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of thel basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's S responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority's basic financial statements. The accompanying Schedule of] Revenues, Expenses, and Changes in Net Position is presented for purposes of additional analysis and 1S not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Revenues, Expenses, and Changes in Net Position -Budget to Actual is fairly stated, in all material respects, in relation to the basic financial statements as a whole. -21- Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2024, on our consideration of the Authority's S internal control over financial reporting and on our tests ofits compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority' 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority'si internal control over financial reporting and compliance. OSHIER, Ackss ! Fameis, L.LG. DOSHIER, PICKENS & FRANCIS, LLC Amarillo, Texas December 1, 2024 -22- Management's Discussion and Analysis Municipal A * a E = 6 - RMWA 9 * Since 1953* * * * * CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 The Canadian River Municipal Water Authority's (the Authority) discussion and analysis provides an overview of the Authority's financial activities for the fiscal year ended September 30, 2024. Since this information is designed to focus on the current year's activities, resulting changes, and currently known facts, the discussion and analysis should be read in conjunction with the Authority's letter of transmittal which can be found on pages 1 through 16. Notation: some of the information in the sections below is from events that occurred in prior years but is considered appropriate here to provide adequate background for the reader to understand the status of work.] FINANCIAL HIGHLIGHTS Conjunctive Use Groundwater Supply Project The Authority began work to provide an alternate water supply from groundwater in 1995 by acquiring 42,765 acres of water rights in Hutchinson and Roberts Counties in the Texas Panhandle. A field of 27 wells with appurtenances and approximately a 36-mile aqueduct pipeline were installed and placed in operation in 2001 to allow delivery of the groundwater and blending with surface water. Contract Revenue Bonds issued in 1995 and 1999 supported these developments. In April 2005, the Authority issued Contract Revenue Bonds, Series 2005 to pay for acquisition and construction costs in connection with the expansion of the Conjunctive Use Groundwater Supply Project. Two wells were added to the original wellfield as Phase II, and one small well previously drilled but not equipped with a pump was also placed in operation. In April 2006, the Authority issued Contract Revenue Bonds, Series 2006 to pay acquisition costs of additional water rights for the project expansion of the Conjunctive Use Groundwater Supply Project Phases II and III. Due to the availability of a larger area of water rights than originally anticipated, the Board authorized additional purchases of water rights, with the cost to be reimbursed from future bond sales. Economic conditions also resulted in very favorable construction bids; therefore, the number of wells to be added was increased. In addition, the size of the new transmission pipeline was enlarged to allow more water to be delivered from the expanded wellfield area and to provide fori future developments. As of September 30, 2009, the Authority had acquired a total of 260,000 acres of water rights. In October 2009, the Authority issued Contract Revenue Bonds, Series 2009 to complete funding fort the project expansion of the Conjunctive Use Groundwater Supply Project Phase III. The design of the wellfield expansion included fifteen new wells, collection pipelines to serve all the new wells, a 54-inch transmission pipeline and other necessary facilities. Together with the original wellfield and the two wells added as part of Phase II, the expanded wellfield would fully utilize the 54-inch pipeline from Roberts County to the Canadian River Aqueduct with allowance for rotation of wells in service. The expanded wellfield allows for production of up to about 69,000 acre-feet annually. All wells were brought online by the spring of 2011. Route planning and purchasing right of way is in process for the next phase of this project which is referred to as CRMWA II. (Additional information related to CRMWA II can be found on page 15.) -24- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 In December 2011, the Authority issued Subordinate Lien Contract Revenue Bonds, Series 2011 to pay for acquisition of additional water rights to support expansion ofthe Conjunctive Use Groundwater Supply Project. As of September 30, 2024, the Authority's total holdings of water rights were just over 456,000 acres. As a result of low interest rates, the Authority continues to realize significant cost savings by refinancing bond issues as they become eligible. In 2010, the Authority was able to refinance the 1999 bond issues (both of which have subsequently matured and have been defeased). In 2012, the Authority was able to refinance the 2005 bond issue. In 2014, the 2005 refunding bond issue and the 2006 bond issue were refinanced. In 2017, the 2009 bond issue was refinanced, in 2020 the 2011 bond issue was refinanced, in 2021 the 2012 refunding bond issue was refinanced and in 2023 the 2014 refunding bond issue was refinanced. Realized cost savings to our member cities from these refundings total $24,949,106. During the fiscal year ending september 2024, the Authority defeased portions of the Series 2020, 2021 and 2023 Subordinate Lien Contract Revenue Refunding Bonds. Funds from the debt service fund were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payments on the defeased bond components. The Authority defeased these bond components in order to collateralize the debt with a portfolio of "risk-free government securities" of which related investment earnings can be retained above the arbitrage yield limitation resulting in savings to the member cities. All of the Authority's bonds have been rated by Moody's as 'Aa3'. Total Annual Due During Requirements For All Fiscal Years Long-Term] Debt Ending Principal Interest Total 2025 $ 9,350,000 $ 2,162,393 $ 11,512,393 2026 8,675,000 1,683,375 10,358,375 2027 8,690,000 1,245,750 9,935,750 2028 6,080,000 886,750 6,966,750 2029 5,795,000 612,025 6,407,025 2030 5,175,000 346,175 5,521,175 2031 5,420,000 108,400 5,528,400 Totals $ 49,185,000 $ 7,044,868 $ 56,229,868 -25- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 OVERVIEW OF THE FINANCIAL STATEMENTS AND FINANCIAL ANALYSIS The discussion and analysis provided here are intended to serve as an introduction to the Authority's financial statements. The Authority's financial statements consist of the following components: 1) the basic financial statements, 2) the notes to the financial statements, 3) supplementary information and 4) statistical information. This report provides both long-term and short-term information about the Authority's financial status (including CRMWA Corporation). The notes to the financial statements provide additional information that is necessary to acquire a full understanding of the data provided in the Authority's financial statements. The notes to the financial statements can be found on pages 39-60 of this report. The Authority's financial statements are prepared in contormity with generally accepted accounting principles (GAAP) as applied to governmental units on an accrual basis as required for enterprise funds. Under this basis, revenues are recognized in the period in which they are earned, and expenses are recognized in the period in which they are incurred. The Statement of Net Position presents financial information on all of the Authority's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Net position is displayed in three components: net investment in capital assets (net of related debt), restricted, and unrestricted. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating. Net position increased by $2,358,436 during the year ended September 30, 2024, to $333,225,334. Factors contributing to the net increase in net position are member city assessments to fund reserves, grant funds received, investment income, current year premium amortization and capital contributions from the member cities all offset by current year depreciation and reserve fund utilization. The Statement of Revenues, Expenses, and Changes in Net Position report total operating revenues, operating expenses, and non-operating revenues and expenses during the fiscal year ending September 30, 2024. -26- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUMMARIZED FINANCIAL INFORMATION September 30, 2024 (With Comparative Amounts for September 30, 2023) 2024 2023 Current and Other Assets $ 34,497,319 $ 39,381,280 Net Capital Assets 320,617,133 319,218,784 Other Noncurrent Assets 42,059,929 58,589,812 Total Assets 397,174,381 417,189,876 Current Liabilities 13,117,539 17,500,054 Noncurrent Liabilities 47,101,233 63,649,789 Total Liabilities 60,218,772 81,149,843 Deferred Inflows of Resources 3,730,275 5,173,135 Net Position: Net Investment in Capital Assets 260,746,021 236,684,884 Restricted 50,179,031 70,238,397 Unrestricted 22,300,282 23,943,617 Total Net Position $ 333,225,334 $ 330,866,898 -27- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 Summarized Financial Information Analysis The $4.88 million decrease in current and other assets from $39,381,280 to 34,497,319 was a result of a decrease in amounts due from member city contributions directly related to the decrease in the current portion of bond principal payments, usage of pump and motor inventory and the utilization of reserve funds. (Additional information on the Authority's reserves can be found in Notes 9 and 10 on pages 52 - 54 of this report.) These decreases were offset by the increase in reserve funds from member city contributions, an increase in member city receivables from the amounts owed for leak repair and for the CRMWA II related project costs. The CRMWA II related project costs (plus additional CRMWA Il project costs yet to be incurred) will be repaid by the member cities once the CRMWA II easement purchases are complete. These charges will be assessed separately from regular general operation and maintenance (GOM) charges. The associated member city receivable is reflected in noncurrent assets which totals $2,014,327 as of September 30, 2024, as shown in Note 4 on page 43 of this report. The increase in net capital assets of $1.4 million was the net of the increase from additions in the amount of $5.18 million and current year depreciation of $3.78 million. Current year additions to capital assets included purchase of easements, a server, two mobile cleaning stations, five field vehicles, various operating equipment, the replacements of two building HVAC units and additional work in progress costs related to the CRMWA II infrastructure project, the tank repainting project and the well replacement project. (Additional information on the Authority's capital assets can be found in Note 5 on page 44 of this report.) The net decrease in other noncurrent assets and noncurrent liabilities relate to 1) the reclassification of the current portion oft the principal payments to be received from the member cities, 2) the reclassification of the current principal to be paid to the bond agencies during the next year plus current year bond premium amortization and 3) a reduction in bond principal due to the establishment of a defeasance escrow, all of which are offset by thei increase oft the amount due from member cities for the CRMWA II project costs as noted above. (Additional information on the Authority's long-term debt can be found in Note 6 on pages 45-51 of this report.) The $4.4 million decrease in current liabilities was from the lower principal and accrued interest due, directly attributable to the bond that is maturing in February of 2025 and the funding of a defeasance escrow. (Additional information on the defeasance escrow can be found in Note 14 on page 56), offset by the increase in prepaid assessments by member cities and by the amount due to member cities based on actual year end cost allocations. (Additional information can be found in Note 7 on page 52). The decrease in deferred inflows of resources in the amount of $1,442,860 is the current year amortization. The Authority' S assets exceeded liabilities and deferred inflows of resources by $333.2 million on September 30, 2024, a $2.358 million increase from September 30, 2023. The excess is comprised of the net position 1) restricted for debt service 2) the net investment in capital assets which the Authority utilizes to deliver water to the member cities, and 3) the unrestricted net position which is to be able to meet the extraordinary and unforeseen costs of operation and maintenance, repair and betterment of project works and to ensure funds are available for major repairs or rehabilitation of wells, equipment and facilities not provided fori in the annual budget. -28- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUMMARIZED CHANGES IN NET POSITION Year Ended September 30, 2024 (With Comparative Amounts for Year Ended September 30, 2023) 2024 2023 Operating Revenues $ 17,287,694 $ 18,509,960 Operating Expenses: Personnel costs (5,191,934) (4,709,099) Professional fees (409,168) (399,468) Purchased and contracted services (1,591,853) (606,148) Consumable supplies and materials (1,179,171) (1,279,067) Recurring operating costs (740,062) (708,806) Pumping energy and line chemicals (6,776,501) (8,869,745) Revenues in excess of expenses before eprecation-amortization 1,399,005 1,937,627 Operating Expenses - DeprecatiomAmortzation (3,776,908) (3,760,453) Operating Loss (2,377,903) (1,822,826) Nonoperating Revenues: Assessments to member cities for bond interest 1,915,920 3,423,140 Federal grants 124,655 Other revenues 1,824,842 1,580,470 Nonoperating Expenses: Bond interest expense, net of amoritzed premiums 199,954 (493,261) Credits to member cities for bond refunding (420,000) Other bond costs (13,929) (165,591) Nonoperating Income 4,051,442 3,924,758 Capital Contributions 684,897 365,939 Increase in Net Position 2,358,436 2,467,871 Beginning Net Position, as previously reported 330,866,898 328,469,649 Change in accounting principle (GASB 101) (70,622) Beginning Net Position, as restated 330,866,898 328,399,027 Net Position End of Year $ 333,225,334 $ 330,866,898 -29- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 Summarized Changes in Net Position Analysis The Authority's member cities are assessed each month for general operation and maintenance (GOM) costs based on estimated costs to each member city as budgeted for that fiscal year. The Authority maintains a cost system by which it allocates its actual costs to each member city. After the end of each fiscal year, the Authority issues additional assessments or credits to each member city for the difference between actual costs allocated to each city and the estimated costs previously assessed. GOM assessments billed to the cities exceeded actual GOM costs by $156,460 due to: 1) lower payroll costs from health insurance premiums coming in under budget which were used to offset excess overtime related to leak repairs, 2) grant funds and reserve funds were used to fund Phase II on the Salinity Control Study and unbudgeted costs related to area fires, 3) TxDOT traffic control was not needed, fewer pump rentals and deferred pigging expenditures were used to cover other over budget line items, and 4) additional reserve funds were applied to qualified expenses further reducing the total year end GOM costs. The amount owed to the member cities will be applied to future GOM assessments or as otherwise agreed upon as in accordance with the Authority's policies. (Refer to pages 31 -32 for further information.) Operating revenues are composed of GOM assessments and Pumping Energy and Chemical assessments (PEC). 1) The GOM revenues increased by $870,000 which was due to increased member city assessments to fund the well system recoating tank project to extend their useful life. (See page 10 for additional information.) 2) The PEC revenue and expense both decreased by $2.1 million directly related to the net drop in the cost/KWH of about 26%. Operating expenses (exclusive of the PEC expense) increased $1.4 million due to 1) leak repairs, 2) contracted services for power pole repairs/replacements due to the wildfire(s) and 3) an increase in personnel costs. These increases were offset by an increase in operating revenues, reserve funds and grant funds. Other revenues decreased by $1.1 million as a result of reducing the member city bond interest assessments by the Authority's interest earnings. Bond interest expense decreased due to the lower bond interest rates from previous refundings, net of premium amortization. The $13,929 other bond cost is directly related to the establishment of the bond component defeasement escrows. Capital contributions in the amount of $684,897 is the amount due from the member cities fort the FY23-24 CRMWA II project costs in excess of bond proceeds available. These charges are being assessed separately from regular GOM assessments. The increase in net position of $2,358,436 is primarily the result of the member city assessments to fund reserves, investment income, current year premium amortization, capital contributions from the member cities, and grant funds all offset by current year depreciation. -30- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 CANADIAN RIVER MUNICIPAL WATER AUTHORITY Reconciliation to the Net General Operating and Maintenance Credit Due to Member Cities Year Ended September 30, 2024 Variance with Original Budget Final Budget Actual Amounts A Final Budget Operating Expenses: Personnel costs $ 5,280,990 $ 5,280,990 $ 5,191,934 $ 89,056 Professional fees 693,289 693,289 409,168 284,121 Purchased: and contracted services 280,669 280,669 1,591,853 (1,311,184) Consumable supplies and materials 1,159,250 1,159,250 1,179,171 (19,921) Recurring operating cost 832,645 832,645 740,062 92,583 Depreciation and amortization 3,776,908 1 (3,776,908) Pumping energy and line chemicals (PEC) 13,187,702 13,187,702 6,776,501 2 6,411,201 Total Operating Expenses $ 21,434,545 $ 21,434,545 $ 19,665,597 $ 1,768,948 Reconciling Items: Depreciation and amortization $ $ $ (3,776,908) 1 $ 3,776,908 Pumping energy and line chemicals assessments (PEC) (13,187,702) (13,187,702) (6,776,501) 2 (6,411,201) 2 Costs funded by thel Dam and Reservoir Reserve (70,000) (70,000) (122,826) 3 52,826 Costs funded by the Well Maintenance Reserve (637,249) 3 637,249 Costs funded by the Well Replacement Reserve (3,168,722) 3 3,168,722 Costs funded by Other Reserve (449,653) 3 449,653 Net inventory utilization (580,484) 3 580,484 Costs funded by federal grants (124,655) 4 124,655 Funding oft the Well Replacement Reserve 127,000 127,000 127,000 5 Funding of the Well Maintenance Reserve 900,000 900,000 900,000 5 Funding of the General Reserve 100,000 100,000 100,000 5 Funding of a Reservei for Various Purchases 859,950 5 (859,950) Capitalized GOM costs 1,363,810 1,363,810 4,492,504 6 (3,128,694) Funding received from an irrigation agreement and other 3,139 (3,139) Total Reconciling Items (10,766,892) (10,766,892) (9,154,405) (1,612,487) Net General Operating and Maintenance 10,667,653 10,667,653 10,511,193 156,460 Net General Operating and Maintenance Credit due to Member Cities $ 10,667,653 $ 10,667,653 $ 10,511,193 $ 156,460 -31- Notes: 1) The Authority has elected not to include depreciation and amortization in the General Operating and Maintenance (GOM) budget since member cities are charged for capital costs at the time of purchase rather than over the useful life oft the asset as required by the GASB 34 accounting standards. To be in compliance with GAAP, the financial statements must reflect depreciation and amortization expense for the current fiscal year. As a result, a reconciling item in the amount of $3,766,908 is needed to reconcile the operating expenses as shown in the financial statements to the net GOM costs allocated to the member cities at year end. 2) The Authority does not include PEC as a part of the GOM budget. PEC is billed to the member cities based on actual usage and costs to date rather than allocated to the cities at year end like GOM costs. Therefore, a reconciling item in the amount of $6,776,501 is necessary to reconcile GAAP compliant financials to net GOM. Budgeted PEC charges were based on an estimated usage of 89,000 acre-feet of lake and groundwater. For the current fiscal year, actual usage was 67,512 acre-feet (50,650 from groundwater and 16,862 from the lake) which is comparable to usage over the last 4 years. CRMWA budgets are based on annual estimated allocations, and since the actual usage was less than estimated and the KWH rates decreased 26%, the PEC costs are $6.4M under budget. 3) The Authority maintains several types of reserves intended for various uses. Member cities are not charged for expenses that qualify to be funded by a reserve, however, to be in compliance with GAAP, the financial statements include these costs in the current fiscal year. This results in a reconciling item to reconcile GAAP compliant financials to net GOM. 4) The Authority received federal grant funds in the amount of $124,655 resulting in a reconciling item to the operating expenses as shown in the financial statements to reduce the net GOM costs allocated to the member cities at year end. 5) The Authority has elected to allocate contributions to specific reserves to the member cities in the year the reserve is funded rather than when the reserve is utilized, and therefore, includes these contributions in the GOM budget. However, GAAP standards do not consider these contributions as expenses until actually incurred SO these contributions are not included in the GAAP compliant financials. A reconciling item is needed to reconcile operating expenses as shown in the financials to net GOM. However, GAAP standards do not consider these contributions as expenses until actually incurred SO these contributions are not included in the GAAP compliant financials. A reconciling item is needed to reconcile operating expenses as shown in the financials to net GOM. 6) In order to be in compliance with GAAP, the Authority capitalizes all assets with a cost, or aggregate cost (if significant), of at least $7,500 and a useful life of at least three years for financial reporting purposes, and therefore, these costs are not reflected in operating expenses. As noted above, member cities are charged for capital costs at the time of purchase resulting in the need for a reconciling item in the amount of $4,492,504 to reconcile the GAAP compliant financials to net GOM. $3,168,722 of those capitalized costs were funded from the Well Replacement Reserve and the remaining $1,323,782 was funded from GOM. 7) The Authority receives income from an irrigation agreement related to water rights purchased with bond funds resulting in a reconciling item of $3,139. 8) Member cities are assessed each month for estimated GOM costs as budgeted (including any subsequent adjustments made to the cities' assessments) for that fiscal year. After the end of each fiscal year, an additional assessment or credit is calculated based on actual costs allocated to each city as compared to the payments received from the member cities. The net GOM credit due to the member cities for FY23-24 was $156,460. -32- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Management's Discussion and Analysis Year Ended September 30, 2024 The following schedule provides a reconciliation of the member cities' assessments and other sources to operating expenses, excluding depreciation and amortization, and other uses of funds. CANADIAN RIVER MUNICIPAL WATER AUTHORITY Operating Sources and Uses Year Ended September 30, 2024 (With Comparative Amounts for September 30, 2023) 2024 2023 Sources of Funds: Member City Assessments: GOM assessments to member cities $ 10,511,193 $ 9,640,215 PEC assessments to member cities 6,776,501 8,869,745 Total Member City Assessments 17,287,694 18,509,960 Other Sources: Well Maintenance Reserve 637,249 1,426,241 Reserve for Dam Operations 122,826 127,040 Well Replacement Reserve 3,168,722 610,388 Net inventory utilization 580,484 Other reserve 449,653 223,927 Federal grants 124,655 Investment income 46,247 Total Other Sources 5,083,590 2,433,843 Total Sources of Funds $ 22,371,283 $ 20,943,803 Uses of Funds: Personnel costs $ 5,191,934 $ 4,709,099 Professional fees 409,168 399,468 Purchased and contracted services 1,591,853 606,148 Consumable supplies and materials 1,179,171 1,279,067 Recurring operating costs 740,062 708,806 Pumping energy and line chemicals 6,776,501 8,869,745 Capitalized GOM costs 4,492,504 905,841 Funding from an irrigation agreement 3,139 5,363 Net inventory increase 1,010,613 Contribution to other reserve 859,950 449,653 Contribution to the Well Replacement Reserve 127,000 1,300,000 Contribution to the Well Maintenance Reserve 900,000 600,000 Contribution to the General Reserve 100,000 100,000.00 Total Uses of Funds $ 22,371,283 $ 20,943,803 -33- Basic Financial Statements Municipal A $ - E E 5 - MWA / * Since 1953 * * * CANADIAN RIVER MUNICIPAL WATER AUTHORITY STATEMENT OF NET POSITION September 30, 2024 Assets: Current Assets: Cash and cash equivalents $ 12,979,875 Investments 8,333,359 Due from member cities and other receivables 11,761,064 Inventory 1,423,021 Total Current Assets 34,497,319 Noncurrent Assets: Restricted cash and cash equivalents 5,326,021 Due from member cities and other receivables 36,733,908 Land and land rights 6,510,277 Capital assets, net of accumulated depreciation of $101,547,133 314,106,856 Total Noncurrent Assets 362,677,062 Total Assets 397,174,381 Liabilities: Current Liabilities: Bonds payable current 9,350,000 Accounts payable and other accruals 3,355,041 Interest payable 303,067 Unearned revenue 82,361 Compensated absences 27,070 Total Current Liabilities 13,117,539 Noncurrent Liabilities: Compensated absences 304,831 Bonds payable 46,796,402 Total Noncurrent Liabilities 47,101,233 Total Liabilities 60,218,772 Deferred Inflows of Resources: Deferred revenue from refunding 3,730,275 Total Deferred Inflows of Resources 3,730,275 Net Position: Net investment in capital assets 260,746,021 Restricted for debt service 50,179,031 Unrestricted 22,300,282 Total Net Position $ 333,225,334 The accompanying notes are an integral part of these financial statements. -35- CANADIAN RIVER MUNICIPAL WATER AUTHORITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For Year Ended September 30, 2024 Operating Revenues: Assessments to member cities General operation and maintenance costs $ 10,511,193 Pumping and chemical costs 6,776,501 Total Operating Revenues 17,287,694 Operating Expenses: Personnel costs 5,191,934 Professional fees 409,168 Purchased and contracted services 1,591,853 Consumable supplies and materials 1,179,171 Recurring operating costs 740,062 Depreciation and amortization 3,776,908 Pumping energy and line chemicals 6,776,501 Total Operating Expenses 19,665,597 Operating Loss (2,377,903) Nonoperating Revenues (Expenses): Assessments to member cities Debt service interest assessment 1,915,920 Other income 7,813 Federal grants 124,655 Investment income 1,819,545 Loss on disposal of assets (2,516) Bond interest expense, net of amortized premiums 199,954 Other bond costs (13,929) Total Nonoperating Revenue (Expenses) 4,051,442 Capital Contributions Contributions from member cities for construction activity 684,897 Total Capital Contributions 684,897 Increase in Net Position 2,358,436 Beginning Net Position 330,866,898 Net Position at End of Year 333,225,334 The accompanying notes are an integral part of these financial statements. -36- CANADIAN RIVER MUNICIPAL WATER AUTHORITY STATEMENT OF CASH FLOWS For Year Ended September 30, 2024 Cash Flows From Operating Activities: Cash received from member cities for assessments $ 17,379,738 Cash payments to employees for services (5,146,364) Cash payments to suppliers for goods and services (9,991,590) Net Cash Provided by Operating Activities 2,241,784 Cash Flows From Noncapital Financing Activities: Cash received from federal operating grant 24,460 Net Cash Provided by Noncapital Financial Activities 24,460 Cash Flows From Capital and Related Financing Activities: Cash paid for acquisition or construction of capital assets (5,177,773) Cash received from federal capital grant 87,500 Cash received from member cities for debt service 16,013,426 Cash paid for defeasance escrow (13,929) Principal paid from cash received from member cities (19,660,000) Interest paid on debt (2,885,751) Net Cash Used for Capital and Related Financing Activities (11,636,527) Cash Flows From Investing Activities: Purchase of investments (8,333,359) Interest received on investments 1,807,045 Net Cash Used for Investing Activities (6,526,314) Net Decrease in Cash and Cash Equivalents (15,896,597) Cash and Cash Equivalents at Beginning of Year 34,202,493 Cash and Cash Equivalents at End of Year $ 18,305,896 (Continued) The accompanying notes are an integral part of these financial statements. -37- CANADIAN RIVER MUNICIPAL WATER AUTHORITY STATEMENT OF CASH FLOWS For Year Ended September 30, 2024 Continuation Reconciliation of Operating Loss to Net Cash Provided by Operating Activities: Operating loss $ (2,377,903) Adjustments to reconcile operating loss to net cash provided by operating activities: Other nonoperating revenue 7,813 Depreciation and amortization 3,776,908 Increase in operating portion of due from member cities and other receivables (315,422) Net decrease in inventory 580,484 Increase in accounts payable, other accruals and compensated absences 162,439 Increase in assessments received in advance 407,465 Net Cash Provided by Operating Activities $ 2,241,784 Schedule of Noncash Investing, Capital and Financing Activities: Premium amortization $ (2,998,236) Noncash contributions from member cities for construction activity $ 684,897 The accompanying notes are an integral part of these financial statements. -38- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Canadian River Municipal Water Authority (the Authority) have been prepared in accordance with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board ("GASB") is responsible for establishing accounting standards for state and local governments through its pronouncements (Statements and Interpretations). The most significant accounting and reporting policies of the Authority are described in the following notes to the financial statements. 1. Financial Reporting Entity The Canadian River Municipal Water Authority was created on May 27, 1953, by the Texas legislature Acts 1953, 53rd Leg., Ch. 243, as amended, (previously Art. 8280-154). Its purpose is to supply water for municipal and industrial uses to member cities. Member cities include: Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O'Donnell, Pampa, Plainview, Slaton and Tahoka. Each member city is represented by one or two persons on the Authority's Board of Directors. The Authority's sources of water are surface water from Lake Meredith and groundwater from Roberts County, Texas. The definition of the reporting entity is based primarily on the notion of financial accountability. The Authority is financially accountable and has operational responsibility for CRMWA Corporation (the Corporation), a not-for-profit corporation created in the State of Texas, authorized to operate in New Mexico to facilitate the construction and operation of the Salinity Control Project. The Corporation is presented in these financial statements as a blended component unit. The Corporation's governing body is the same as the Authority's. The blended component unit, although a legally separate entity, is in substance part of the Authority's operations and is reported with the Authority. Separate financial statements are not published for the Corporation which follows the same accounting policies as the Authority. Transactions with other governmental entities consist of assessments to member cities for costs of operations, oumping energy and construction projects. 2. Basis of Accounting The Authority qualifies as a special purpose government engaged only in business-type activities, and accordingly only the financial statements required for an enterprise fund are presented as basic financial statements. A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The Authority measures the full cost of providing water to the member cities for the purpose of fully recovering that cost through charges to the member cities. Charges to member cities are computed on a cost-reimbursement basis. The Authority's basic financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when the liability is incurred. Internal activity has been eliminated in the accompanying financial statements. 3. Inventory Inventory is valued at cost using the first-in/first-out (FIFO) method and consists of spare pumps and motors for the wellfield. The cost of such inventory is recorded as an expense when consumed rather than when purchased. The Authority has elected to not record any other inventory since member cities are charged for supply and material costs at the time of purchase rather than at the time of use. The impact to the financial statements taken as a whole is not material. Continued -39- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continuation 4. Capital Assets Capital assets, which include land, water systems, water rights, buildings and equipment, are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. The Authority capitalizes all assets with a historical cost, or aggregate cost (if significant), of at least $7,500 and a useful life of at least three years. The cost of normal maintenance and repairs that do not add to the value ofi the assets or materially extend asset lives are not capitalized. Land and land rights are not depreciated. Depreciation is computed utilizing the straight-line method over the following estimated useful lives: Water systems 10 to 200 years Buildings 75 years Other equipment 31 to 10 years Automobiles/trucks 51 to 10 years 5. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and SO will not be recognized as an outflow of resources (expense) until then. The Authority did not have any items that qualified for reporting in this category for the year ended September 30, 2024. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and SO will not be recognized as an inflow of resources (revenue) until then. The Authority has one item that qualified for reporting in this category fori the year ended September 30, 2024. Iti isi the deferred inflow on refundings reported in the statement of net position. The deferred inflow on refunding's result from the difference between the carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. 6. Compensated Absences In June 2022, the Government Accounting Standards Board (GASB) approved GASB Statement No. 101 Compensated Absences (GASB 101) replacing GASB 16 which was issued in 1992. GASB 101 is effective for fiscal years beginning after December 15, 2023, however, the Authority elected early implementation. Upon implementation of GASB 101, sick leave will be included in the calculation of compensated absences. Previously only annual leave was included in the calculation of compensated absences. Changes adopted to conform to GASB 101 are applied retroactively by restating beginning net position fori the cumulative effect of the change on prior periods. Employees are entitled to annual leave with pay ranging from two to five weeks per year. Annual leave that is unused at the end of the year may be carried over, but the cumulative total carryover shall not exceed the employee's annual rate of leave accrual as of the current December 31. Upon separation in good standing, the employee shall be paid the amount of unused annual leave accrued to his credit as of the date of termination. Continued -40- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continuation 6. Compensated Absences - Continuation Sick leave accrues at approximately one day per month, up to a maximum of 720 hours. During November of each year, each current employee with one year or more of continuous service shall be paid for the amount of the employee's unused sick leave, up to a maximum of forty (40) hours pay, reduced by sick leave taken during the preceding 12 months. Sick leave is not paid out upon employee separation from the Authority. All accumulated annual leave is recorded as an expense and a liability at the time the benefit is earned. Due to the nature of sick leave, management has elected to record 50% of current year sick leave accrual as an expense and a liability at the time the benefit is earned as a result of implementing GASB 101. 7. Capitalized Interest In June 2018, the Government Accounting Standards Board (GASB) approved GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. GASB-89 effective for reporting periods beginning after December 15, 2019. Upon implementation of GASB-89, interest costs incurred before the end of a construction period are now recognized as an expense and not capitalized. Changes related to the adoption of GASB-89 were applied prospectively rather than restating beginning balances. 8. Revenue Policies The principal portion of the Authority's revenues is provided by assessments from member cities for all costs incurred in delivering water to them. Water is delivered to member cities on demand up to predetermined allocations and revenue is recognized at the time of delivery. 9. Deposits and Investments For financial reporting purposes cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash and have an original maturity date of three months or less. Time certificates of deposit with original maturities of more than three months are classified as investments. Interest on certificates of deposit is recorded as earned but is subject to forfeiture for early withdrawal of deposits. 10. Classification of Revenues Operating revenues consist of assessments to member cities for all general operating costs and for pumping and energy costs. Nonoperating revenues consist primarily of assessments to member cities for servicing debt and of investment income. Continued -41- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continuation 11. Net Position Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction, or improvements oft those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations imposed on the Authority or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. 12. Use of Estimates The preparation of financial statements in contormity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the date oft the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 - BUDGETS AND BUDGETARY ACCOUNTING 1. During April, the Board of Directors adopted the budget. 2. Budgeted amounts are as originally adopted but may be revised, as necessary. 3. All appropriations lapse at the end of the Authority's fiscal year and may be re-budgeted the next year. 4. The budgets for the operating funds of the Authority and the Corporation are adopted on a basis consistent with generally accepted accounting principles (GAAP) on the accrual basis of accounting, except for depreciation expense which is not included in the annual budget. 5. Formal budgetary integration on an annual basis is employed as a management control device during the year for the operating revenues and expenses. Formal budgetary integration is not employed for the debt service because effective budgetary control is alternatively achieved through the bond redemption schedules for the various bonds. Formal budgetary integration is not employed for construction because effective budgetary control is alternatively achieved through appropriations received for the specified purpose and through budgetary integration on a project length basis at the time the agreements with engineersycontractors are signed. 6. The Authority adhered to the prescribed budgets as a whole, as discussed above, for the year ended september 30, 2024. The negative variance in purchased and contracted services ($1,311,184) was funded from the Well Maintenance Reserve, inventory and favorable variances from other line items. The negative variance in consumable supplies and materials ($19,921) was funded from favorable variances in other line items. -42- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 3 = DEPOSITS AND INVESTMENTS Deposits are classified in the accompanying Statement of Net Position as follows: Current assets: Cash and cash equivalents $ 12,979,875 Non-current assets: Restricted cash and cash equivalents 5,326,021 Total deposits $ 18,305,896 Deposits and investments held by the Authority consist of the following classifications: Deposits $ 3,354,542 Money Market Accounts 14,951,354 Nonnegotiable Certificates of Deposit 8,333,359 Total cash and cash equivalents 26,639,255 Less deposits (18,305,896) Total investments $ 8,333,359 Texas law and Board policy require that Authority deposits be placed in financial institutions located in Texas. All of the Authority's demand deposit and time accounts are held in two local banking institutions under the terms of a written depository contract. Such deposits must be collateralized with securities or surety bonds to the extent not insured by the Federal Deposit Insurance Corporation (FDIC). Securities that may be accepted as collateral are those authorized by the Public Funds Collateral Act. Accordingly, these are limited to obligations of the United States and its agencies and instrumentalities, obligations issued by public agencies with at least a rating of "A" by a nationally recognized rating agency, and any other security in which a public entity may invest under the Public Funds Investment Act. At September 30, 2024, Authority deposits in excess of the amount insured by the FDIC were collateralized by securities pledged in the amount of $45,153,723 and were held separate and apart from the pledging banks. NOTE 4 - DUE FROM MEMBER CITIES AND OTHER RECEIVABLES The following is a summary of the amounts due from the member cities and other receivables: Current due from member cities and other receivables: Due from member cities for bond issues (see Note 6) $ 10,524,422 Net year-end adjustments receivable from member cities 1,209,875 Due from vendors 14,267 Interest receivable 12,500 $ 11,761,064 Noncurrent due from member cities and other receivables: Due from member cities for bond issues (see Note 6) $ 34,719,581 Due from member cities for construction activities 2,014,327 $ 36,733,908 The amounts due from the member cities for construction activities are for the final costs of the project expansion of the Conjunctive Use Groundwater Supply Project Phase III and the CRMWA II easement purchases in excess of available bond proceeds. These charges will be assessed to the member cities separately from the regular charges for GOM once the projects are complete. -43- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 5 - CAPITAL ASSETS Capital asset activity for the year ended September 30, 2024, is as follows: Balance at Balance at September 30, 2023 Increases Decreases September 30, 2024 Capital assets not being depreciated: Land $ 5,931,961 $ 578,316 $ $ 6,510,277 Total capital assets not being depreciated 5,931,961 578,316 6,510,277 Capital assets being depreciated: Buildings 1,457,226 30,585 1,487,811 Operating Equipment 4,260,122 423,172 (22,407) 4,660,887 Communications Facilities 1,798,930 1,798,930 Dam and Reservoir 21,733,541 21,733,541 Pipelines 117,860,906 117,860,906 Pumping Plants 27,915,387 844,824 28,760,211 Regulating Reservoirs 2,252,876 2,252,876 Water Treatment Facilities 385,695 385,695 Water Rights 190,998,213 190,998,213 Groundwater Production Facilities 33,141,215 33,141,215 Salinity Control Facilities 6,464,209 6,464,209 Work in Progress 2,808,619 3,300,876 6,109,495 Total capital assets being depreciated 411,076,939 4,599,457 (22,407) 415,653,989 Less accumulated depreciation for: Buildings (466,705) (34,806) (501,511) Operating Equipment (3,176,861) (316,397) 19,891 (3,473,367) Communications Facilities (853,706) (23,293) (876,999) Dam and Reservoir (13,295,048) (219,533) (13,514,581) Pipelines (36,862,720) (1,103,990) (37,966,710) Pumping Plants (8,605,193) (326,145) (8,931,338) Regulating Reservoirs (1,150,221) (23,916) (1,174,137) Water Treatment Facilities (279,809) (5,142) (284,951) Water Rights (15,354,569) (963,879) (16,318,448) Groundwater Production Facilities (11,281,075) (759,807) (12,040,882) Salinity Control Facilities (6,464,209) (6,464,209) Total accumulated depreciation (97,790,116) (3,776,908) 19,891 (101,547,133) Total capital assets being depreciated, net 313,286,823 822,549 (2,516) 314,106,856 Total capital assets, net $ 319,218,784 $ 1,400,865 $ (2,516) $ 320,617,133 -44- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES In the year ended September 30, 2005, the Authority issued Contract Revenue Bonds, Series 2005 in the amount of $48,125,000 for water rights purchases with principal maturing annually through February 15, 2025. The Authority issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2012 in the amount of $39,505,000 fori the advance refunding portion of the Contract Revenue Bonds, Series 2005 with principal maturing annually through February 15, 2025. Interest ranged from 2% - 5%. The Authority then issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2021 in the amount of $18,305,000 for the refunding of the Contract Revenue Refunding Bonds, Series 2012 with principal maturing annually through February 15, 2025. Interest ranges from 2% - 5%. The City of Lubbock has a different structure of repayment than the other member cities. In the year ended September 30, 2006, the Authority issued Contract Revenue Bonds, Series 2006 in the amount of $49,075,000 for acquisition and construction costs with principal maturing annually through February 15, 2027. Interest ranged from 4.25% - 5%. Slaton and Tahoka had initially opted out of the bond issue and seven of the other cities (not including Lamesa or O'Donnell) agreed to pick up their shares. Slaton and Tahoka then decided to buy in, as allowed by the contract. Even though the buy-in option was exercised, the initial participating member cities are still obligated to make the bond payments in full. The Authority provided these seven-member cities credit for the payments made by Slaton and Tahoka on an annual basis to compensate for the buy-in. The Authority issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2014 in the amount $30,415,000 for the advance refunding of the Contract Revenue Bonds, Series 2006 with principal maturing annually through February 15, 2027. Interest ranges from 2% 5%. Slaton and Tahoka are participants in the Series 2014 issue. The Authority has now issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2023 in the amount of $12,330,000 at 5%1 fort the refunding of the Contract Revenue Refunding Bonds, Series 2014 with principal maturing annually through February 15, 2027. All member cities share proportionately the obligations of the annual debt service. In the year ended September 30, 2010, the Authority issued Contract Revenue Bonds, Series 2009 in the amount of $21,105,000 for financing the continuation and expansion of the Conjunctive Use Groundwater Supply Project with principal maturing annually through February 15, 2029. Interest ranged from 3% - 5%. The Authority established a Bond Reserve Fund with a contribution of $1,617,806 from the General Reserve Fund which will not be repaid by the member cities. The Authority issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2017 in the amount of $11,465,000 for the advance refunding of the Contract Revenue Bonds, Series 2009 with principal maturing annually through February 15, 2029. The Bond Reserve Fund was rolled into the 2017 advanced refunding. Interest ranges from 3% 5%. All member cities share proportionately the obligations of the annual debt service. In the year ended September 30, 2012, the Authority issued Subordinate Lien Contract Revenue Bonds, Series 2011 in the amount of $81,630,000 fort financing the purchases of various water rights with principal maturing annuallythrough February 15, 2031. Interest ranged from 3% 5%. The Authority issued Subordinate Lien Contract Revenue Refunding Bonds, Series 2020 in the amount of $44,095,000 for the refunding of the Contract Revenue Bonds, Series 2011 with principal maturing annually through February 15, 2031. Interest ranges from 4% - 5%. The member cities share proportionately the obligations of the annual debt service with a modification made for the City of Levelland for consideration of a cash contribution. All bonds are payable from and secured by an irrevocable first lien on and pledge of the participating member cities' project payments in accordance with their individual Conjunctive Use Groundwater Supply Agreements. Moody's has rated each of these bonds an Aa3'. Continued -45- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES - Continuation The following is a summary of the Authority's long-term debt and other liabilities: Contract Contract Contract Contract Revenue Revenue Revenue Revenue Refunding Refunding Refunding Refunding Conjunctive Conjunctive Conjunctive Conjunctive Use Use Use Use Groundwater Groundwater Groundwater Groundwater Series 2020 Series 2017 Series 2021 Series 2023 Totals Interest Rate 4.0. 5.0% 3.0 5.0% 2.0 5.0% 5.0% Principal Due Annually Feb Feb Feb Feb Interest Due Semi-Annually Feb/ . Aug Feb/ - Aug Feb/A Aug Feb/ Aug Balances at September 30, 2023 $ 36,890,000 $ 7,150,000 $ 12,475,000 $ 12,330,000 $ 68,845,000 Principal Payments (6,770,000) (1,145,000) (7,725,000) (4,020,000) (19,660,000) Balances at September 30, 2024 30,120,000 6,005,000 4,750,000 8,310,000 49,185,000 Bond Premium Net of Amortization 5,907,917 518,277 155,485 379,723 6,961,402 Total Bonds Payable at September 30, 2024 $ 36,027,917 $ 6,523,277 $ 4,905,485 $ 8,689,723 $ 56,146,402 Amounts Due Within One Year $ 1,145,000 $ 1,200,000 $ 4,750,000 $ 2,255,000 $ 9,350,000 Continued -46- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES - Continuation The annual requirements to amortize the Authority's long-term debt, including interest as of september 30, 2024 is presented below: Contract Revenue Refunding Bonds Contract Revenue Refunding Bonds Due During Conjunctive Use Groundwater Supply Project Conjunctive Use Groundwater Supply Project Fiscal Years Series 2020 ($44,095,000) Series 2017 ($11,465,000) Ending Principal Interest (4-5%) Total Principal Interest (3-5%) Total 2025 $ 1,145,000 $ 1,495,925 $ 2,640,925 $ 1,200,000 $ 212,700 $ 1,412,700 2026 4,255,000 1,288,175 5,543,175 1,265,000 151,075 1,416,075 2027 4,465,000 1,070,175 5,535,175 1,325,000 92,950 1,417,950 2028 4,705,000 840,925 5,545,925 1,375,000 45,825 1,420,825 2029 4,955,000 599,425 5,554,425 840,000 12,600 852,600 2030 5,175,000 346,175 5,521,175 2031 5,420,000 108,400 5,528,400 Totals $ 30,120,000 $ 5,749,200 $ 35,869,200 $ 6,005,000 $ 515,150 $ 6,520,150 Continued -47- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 Contract Revenue Refunding Bonds Contract Revenue Refunding Bonds Conjunctive Use Groundwater Supply Project Conjunctive Use Groundwater Supply Project Series 2021 ($18,305,000) Series 2023 ($12,330,000) Principal Interest (1.75-5%) Total Principal Interest (5%) Total $ 4,750,000 $ 55,518 $ 4,805,518 $ 2,255,000 $ 398,250 $ 2,653,250 3,155,000 244,125 3,399,125 2,900,000 82,625 2,982,625 $ 4,750,000 $ 55,518 $ 4,805,518 $ 8,310,000 $ 725,000 $ 9,035,000 Continued 4% 8- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES - Continuation The annual requirements to amortize the Authority's long-term debt, including interest as of september 30, 2024 is presented below: Total Annual Requirements For All Long-Term Debt Principal Interest Total $ 9,350,000 $ 2,162,393 $ 11,512,393 8,675,000 1,683,375 10,358,375 8,690,000 1,245,750 9,935,750 6,080,000 886,750 6,966,750 5,795,000 612,025 6,407,025 5,175,000 346,175 5,521,175 5,420,000 108,400 5,528,400 $ 49,185,000 > 7,044,868 $ 56,229,868 Continued -49- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES - Continuation The principal balances of the member cities' obligations as of september 30, 2024, were as follows: Contract Contract Contract Contract Revenue Revenue Revenue Revenue Refunding Refunding Refunding Refunding Conjunctive Conjunctive Conjunctive Conjunctive Use Use Use Use Groundwater Groundwater Groundwater Groundwater Series 2020 Series 2017 Series 2021 Series 2023 Total Receivables from Cities at September 30, 2023 $ 34,139,276 $ 6,333,565 $ 8,537,766 $ 10,529,032 $ 59,539,639 Principal Payments (3,974,304) (1,175,878) (6,211,914) (2,933,540) (14,295,636) Receivables from Cities at September 30, 2024 $ 30,164,972 $ 5,157,687 $ 2,325,852 $ 7,595,492 $ 45,244,003 City of Amarillo $ 12,320,278 $ 2,073,702 $ 1,091,779 $ 3,031,681 $ 18,517,440 City of Borger 1,701,933 288,825 186,430 428,059 2,605,247 City of Brownfield 666,650 112,208 59,088 164,044 1,001,990 City of Lamesa 660,952 111,238 58,553 162,626 993,369 City of Levelland 511,004 145,219 93,814 215,225 965,262 City of Lubbock 11,366,131 1,928,869 529,167 2,858,716 16,682,883 City of O'Donnell 84,268 14,192 7,430 20,748 126,638 City of Pampa 1,104,194 187,380 120,888 277,710 1,690,172 City of Plainview 1,132,094 192,116 124,018 284,730 1,732,958 City of Slaton 478,021 80,455 42,344 117,622 718,442 City of Tahoka 139,447 23,483 12,341 34331 209,602 Receivables from Member Cities $ 30,164,972 $ 5,157,687 $ 2,325,852 $ 7,595,492 $ 45,244,003 Current Portion $ 4,026,640 $ 1,196,021 $ 2,325,852 $ 2,975,909 $ 10,524,422 Noncurrent Portion 26,138,332 3,961,666 4,619,583 34,719,581 $ 30,164,972 $ 5,157,687 $ 2,325,852 $ 7,595,492 $ 45,244,003 Continued -50- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 6 - LONG-TERM DEBT AND OTHER LIABILITIES - Continuation Unearned Revenue: As of September 30, 2024, member cities participating in the debt financing had remitted interest payments since the most recent bond interest payment on August 15, 2024, totaling $82,361 toward the February 15, 2025, debt service requirements. The interest remitted has been recorded as unearned revenue. Interest Payments Remitted Contract Revenue Refunding Conjunctive Use Groundwater Series 2020 $ 63,692 Contract Revenue Refunding Conjunctive Use Groundwater Series 2023 18,669 Total Unearned Revenue 82,361 Compensated Absences: In June 2022, the Government Accounting Standards Board (GASB) approved GASB Statement No. 101 Compensated Absences (GASB 101) replacing GASB 16 which was issued in 1992. Upon implementation of GASB 101, sick leave is now included in the calculation of compensated absences, whereas previously only annual leave was included in the calculation. Compensated absences increased from the September 30, 2023 to September 30, 2024, by $35,691, leaving al balance of $331,900. This was due to unforeseen repairs and maintenance that did not allow for annual leave. Compensated Absences: Balance at September 30, 2023 $ 296,210 Additions 333,809 Deletions (298,118) Balance at September 30, 2024 $ 331,901 Amounts Due Within One Year f 27,070 -51- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 7 - ASSESSMENTS TO MEMBER CITIES Member cities of the Authority are assessed each month for general operation and maintenance costs, excluding pumping energy and line chemicals, on the basis of estimated costs to each member city as budgeted for that fiscal year. The Authority maintains a cost system by which it allocates its actual costs to each member city. After the end of each fiscal year, it issues additional assessments or credits to each member city for the difference between actual costs allocated to each city and the estimated costs previously assessed. These year-end adjustments are reflected in these financial statements. NOTE 8 - PUMPING ENERGY AND CHEMICAL COSTS In accordance with the Authority's S manual revised and adopted byt the Board of Directors on February 1, 2017, pumping energy and line chemicals are assessed to the member cities each month on a direct cost basis. Therefore, these costs are segregated from other general operation and maintenance costs of the Authority. NOTE 9 - RESERVES Injection Well Reserve The Injection Well Reserve shall be maintained for the purpose of major repair or rehabilitation of thei injection well or wells at the Lake Meredith Salinity Control Project, for the purpose of maintaining or restoring the capacity of the well or wells to receive injectate, or to comply with regulatory requirements. The Board of Directors of the Authority shall determine the maximum amount of this reserve. There was no GOM budgeted contribution for FY23-24 due to using those funds to budget for a salinity control project study and none of the reserve was utilized this year. The Injection Well Reserve had a balance of $4,922,716 at September 30, 2024. Well Maintenance Reserve This reserve shall be maintained for providing for the major repair or rehabilitation of wells, well pumps, well pump motors, motor controls, or related equipment, and for paying any applicable minimum charges which may become due on contracts or tariffs for motive power for pumping from wells. The FY23-24 GOM budgeted contribution was $900,000. Utilization of the reserve totaled $637,249 and use of $580,484 from inventory for repairs of existing equipment in a timely manner. The maximum amount of the reserve shall be the amount required to pay the minimum charges on any contract or tariff for motive power for pumping, plus the average annual direct cost of motive power for well pumping for five immediately preceding complete budget years. Such reserve had a balance of $903,253 at September 30, 2024, which is under the calculated maximum. Future GOM budgets will include increased contributions to this reserve fund to build the reserve balance up for increased cost of parts to continue to meet business and member city needs. Continued -52- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 9 - RESERVES - Continuation Reserve for Dam Operations The Authority established the Reserve for Dam Operations in the amount of $1,506,917 in accordance with the provisions of the Contracts between the cities and the Authority whereby interest earnings would accumulate to meet the annual expense for the dam and reservoir previously paid by the Bureau of Reclamation. As a result of cumulative expenses exceeding cumulative interest earnings, the reserve balance has fallen below the value specified in the Contracts. The Contracts state that the Board of Directors will establish procedures to replenish the fund when and if necessary. It was determined by the Board of Directors at the January 12, 2012, meeting that the fund will continue to be used until it is exhausted. Such reserve had a balance of $198,158 at September 30, 2024. Utilization of the reserve totaled $122,826 for the year ended September 30, 2024. Well Replacement Reserve The Authority established this reserve for adding future wells to replace lost well production capacity. The FY23-24 GOM budgeted contribution was $127,000 and $3,168,722 of the reserve was utilized this year. The Authority is currently in the construction phase of 4 new wells that should be online in mid-2025. Funding for these new wells comes from this Well Replacement Reserve fund. Such reserve had a balance of $4,038,723 at September 30, 2024. Reserve for Inventory The Authority uses this reserve to account for inventory. The net decrease in inventory totaled $580,484 for the year ended September 30, 2024. This decrease was the pumps and motors used along with the Well Maintenance Reserve Fund as noted above. The Inventory reserve had a balance of $1,423,021 at September 30, 2024. General Reserve This Reserve shall be maintained 1) to meet the extraordinary and unforeseen costs of operation and maintenance, repair and betterment of project works, 2) for replacement or major repair of items of equipment and facilities not provided for by the approved budget for General Operation and Maintenance costs or other reserves of the Authority, 3) for capital or major improvement of project works. The amount accumulated in this reserve shall not be reduced to less than $300,000 for the purposes listed in items 2 or 3 without the approval of the Contracting Officer of the Bureau of Reclamation. The maximum amount of the Reserve shall be $300,000 plus the average of the final amounts budgeted for General Operation and Maintenance Costs during the two immediately preceding complete budget years plus the average annual direct cost of pumping energy for the five immediately preceding complete budget years. The FY23-24 GOM budgeted contribution was $100,000. The additional amount reserved for various purchases from the FY23-24 budget was $859,950. $449,653 of the amount reserved for various purchases from the FY22-23 budget was fully utilized this year. Such Reserve had a balance of $10,814,411 at September 30, 2024, which is under the calculated maximum. -53- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 10 - CHANGES IN UNRESTRICTED NET POSITION Changes in the Authority's unrestricted Net Position are shown below: Injection Well Reserve Well Total Well Maintenance for Dam Replacement Reserve for General Unrestricted Reserve Reserve Operations Reserve Inventory Reserve Reserves Balances at September 30, 2023 $ 4,655,679 $ 544,870 $ 303,518 $ 6,706,357 $ 2,003,505 $ 9,729,688 $ 23,943,617 Reserved for various purchases 859,950 859,950 O&M budgeted contributions 900,000 127,000 100,000 1,127,000 Miscellaneous income 7,813 7,813 Net inventory decrease (580,484) (580,484) Utilization of reserve (637,249) (122,826) (3,168,722) (449,653) (4,378,450) Interest income 267,037 95,632 17,466 374,088 566,613 1,320,836 Balances at September 30, 2024 4,922,716 $ 903,253 $ 198,158 $ 4,038,723 $ 1,423,021 $ 10,814,411 $ 22,300,282 -54- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 11 - NET POSITION Net position at September 30, 2024, consisted of the following: Net investment in capital assets Capital assets, net $ 320,617,133 Less outstanding debt issued for purchase or construction of capital assets (59,871,112) Total net investment in capital assets 260,746,021 Restricted net position 50,179,031 Unrestricted net position 22,300,282 Total Net Position $ 333,225,334 NOTE 12 - RETIREMENT PLANS The Authority has established a money purchase defined contribution 401(a) plan and a 457 plan for its employees, both of which are administered by ICMA. The plan is governed by the Board of Directors which may amend benefits and other plan provisions and are responsible for the management of the plan assets. Contribution requirements of plan members and the Authority may also be amended by the Board of Directors. Currently, the Authority and CRMWA Corporation contribute 14% of eligible employee earnings to the 401(a) plan. Eligible employees must contribute 7% of their earnings. Employees may also contribute to the 457, IRA and/or Roth IRA plans. Employee contributions to all plans were equivalent to 10.36% of covered payroll or $378,004 for the year ended September 30, 2024. The total cost to the Authority and Corporation for year ended September 30, 2024, was $498,330 (net of forfeited amounts due to terminations). Combined entities' payroll for year ended September 30, 2024, was $3,727,727 and the Authority's contributions to the 401(a) plan were based on a covered payroll of $3,649,964. As of September 30, 2024, there were 53 plan members with account balances in the 401(a) plan representing both current (41) and former employees/retirees (12). The 457 plan had 29 members with account balances representing 26 employees actively contributing. During the fiscal year ended September 30, 1992, the Board of Directors approved an amendment to the plan to allow early retirement. The amendment established a factor based on the total of the employee's age and length of service to equal 82.5 years, after age 55. -55- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 13 - RISK MANAGEMENT The Authority's major areas of risk management are directors' liability, general liability, property damage, boiler and machinery equipment damage, pollution, workers' compensation, automobile liability, cyber and employee health insurance. The Authority has purchased commercial insurance to cover risks of loss in these areas. There have been no significant reductions in insurance coverage and settlements have not exceeded insurance coverage for the current year or the previous three years. NOTE 14 - BOND DEFEASANCE ESCROWS During the fiscal year ending September 2024, the Authority defeased portions of the Series 2020, 2021 and 2023 Subordinate Lien Contract Revenue Refunding Bonds. $5,833,261 (less $13,929 in underwriting fees and other defeasance costs) from the debt service fund were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payments on the defeased bond components. The bond components are considered defeased and the liability for those bond components have been removed from the statement of net position. The Authority defeased these bond components in order to collateralize the debt with a portfolio of "risk-free government securities" of which related investment earnings can be retained above the arbitrage yield limitation resulting in savings to the member cities. -56- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 15 - BLENDED COMPONENT UNIT CONDENSED COMBINING STATEMENT OF NET POSITION September 30, 2024 Canadian River Municipal Water CRMWA Authority Corporation Totals Current and Other Assets $ 29,561,852 $ 4,935,467 $ 34,497,319 Accounts Receivable from Corp 5,448 5,448 Net Capital Assets 320,371,826 245,307 320,617,133 Other Noncurrent Assets 42,059,929 42,059,929 Total Assets 391,993,607 5,186,222 397,179,829 Current Liabilities 13,099,340 18,199 13,117,539 Accounts Payable to the Authority 5,448 5,448 Noncurrent Liabilities 47,082,791 18,442 47,101,233 Total Liabilities 60,187,579 36,641 60,224,220 Deferred Inflows of Resources 3,730,275 3,730,275 Net Position: Net Investment in Capital Assets 260,500,714 245,307 260,746,021 Restricted for debt service 50,179,031 50,179,031 Unrestricted 17,396,007 4,904,274 22,300,282 Total Net Position $ 328,075,752 $ 5,149,582 $ 333,225,334 Continued -57- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 15 - BLENDED COMPONENT UNIT - Continuation CONDENSED COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the year ended September 30, 2024 Canadian River Municipal Water CRMWA Authority Corporation Totals Operating Revenues $ 17,287,694 $ $ 17,287,694 Operating Expenses (15,518,166) (370,523) (15,888,689) Revenues in excess of (under) expenses before epreciatonamortization 1,769,528 (370,523) 1,399,005 Operating Expenses - Deprecation/Amortzation (3,749,299) (27,609) (3,776,908) Operating Loss (1,979,771) (398,132) (2,377,903) Nonoperating Revenues: Assessments to member cities for bond interest 1,915,920 1,915,920 Federal grants 124,655 124,655 Other revenues 1,557,805 267,037 1,824,842 Nonoperating Expenses: Bond interest expense, net of amortized premiums 199,954 199,954 Other bond costs (13,929) (13,929) Operating Income (Loss) Net of Nonoperating Revenues (Expenses) 1,804,634 (131,095) 1,673,539 Transfers (369,364) 369,364 Capital Contributions 684,897 684,897 Increase in Net Position 2,120,167 238,269 2,358,436 Beginning Net Position 325,955,585 4,911,313 330,866,898 Net Position - End of Year $ 328,075,752 $ 5,149,582 $ 333,225,334 Continued -58- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 15 - BLENDED COMPONENT UNIT - Continuation CONDENSED COMBINING STATEMENT OF CASH FLOWS For Year Ended September 30, 2024 Canadian River Municipal Water CRMWA Authority Corporation Totals Cash Flows From Operating Activities: Cash received from member cities for assessments $ 17,379,738 $ $ 17,379,738 Cash payments to employees for services (4,911,704) (234,660) (5,146,364) Cash payments to suppliers for goods and services (9,855,990) (135,600) (9,991,590) Net Cash Provided (Used for) Operating Activities 2,612,044 (370,260) 2,241,784 Cash Flows From Noncapital Financing Activities: Cash received from federal operating grant 24,460 24,460 Net Cash Provided (Used for) Noncapital Financial Activities 24,460 24,460 Cash Flows From Capital and Related Financing Activities: Transfers (320,312) 320,312 Cash paid for acquisition or construction of capital assets (5,177,773) (5,177,773) Cash received from federal capital grant 87,500 87,500 Cash received from member cities for debt service 16,013,426 16,013,426 Cash paid for defeasance escrow (13,929) (13,929) Principal paid from cash received from member cities (19,660,000) (19,660,000) Interest paid on debt (2,885,751) (2,885,751) Net Cash Provided (Used for) Capital and Related Financing Activities (11,956,839) 320,312 (11,636,527) Cash Flows From Investing Activities: Purchase of investments (4,166,680) (4,166,679) (8,333,359) Interest received on investments 1,546,258 260,787 1,807,045 Net Cash Used for Investing Activities (2,620,422) (3,905,892) (6,526,314) Net Decrease in Cash and Cash Equivalents (11,940,757) (3,955,840) (15,896,597) Cash and Cash Equivalents at Beginning of Year 29,483,601 4,718,892 34,202,493 Cash and Cash Equivalents at End of Year $ 17,542,844 $ 763,052 $ 18,305,896 Continued -59- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS September 30, 2024 NOTE 15 - BLENDED COMPONENT UNIT - Continuation CONDENSED COMBINING STATEMENT OF CASH FLOWS For Year Ended September 30, 2024 Canadian River Municipal Water CRMWA Authority Corporation Totals Continuation Reconciliation of Operating Loss to Net Cash Provided by (Used for) Operating Activities: Operating loss $ (1,979,771) $ (398,132) $ (2,377,903) Adjustments to reconcile operating loss to net cash provided by (used for) operating activities: Other nonoperating revenue 7,813 7,813 Depreciation and amortization 3,749,299 27,609 3,776,908 Increase in operating portion of due from member cities and other receivables (315,935) 513 (315,422) Net decrease in inventory 580,484 580,484 Increase (Decrease) in accounts payable, other accruals and compensated absences 162,689 (250) 162,439 Increase in assessments received in advance 407,465 407,465 Net Cash Provided by (Used for) Operating Activities $ 2,612,044 d$ (370,260) $ 2,241,784 Schedule of Noncash Investing, Capital and Financing Activities: Premium amortization $ (2,998,236) $ $ (2,998,236) Noncash contributions from member cities for construction $ 684,897 $ $ 684,897 -60- Supplementary Information Municipal A1 A1 abbe O o E a E - E 5 - - CRMWA - / Since 1953* * * * * * CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUPPLEMENTARY INFORMATION For Year Ended September 30, 2024 SCHEDULE OF REVENUES, EXPENSES AND CHANGES INI NET POSITION Budget to Actual For' Year Ended September: 30, 2024 Variance to Original Budget Final Budget Actual Amounts Final Budget Operating Revenues: Assessments to member cities General 0&M costs $ 10,667,653 $ 10,667,653 $ 10,511,193 $ (156,460) Pumping and chemical costs 13,187,702 13,187,702 6,776,501 (6,411,201) Total Operating Revenues 23,855,355 23,855,355 17,287,694 (6,567,661) Operating Expenses: Personnel costs 5,280,990 5,280,990 5,191,934 89,056 Professional fees 693,289 693,289 409,168 284,121 Purchased: ando contracted: services 280,669 280,669 1,591,853 (1,311,184) Consumable supplies and materials 1,159,250 1,159,250 1,179,171 (19,921) Recurring operating cost 832,645 832,645 740,062 92,583 Depreciation and amortization 3,776,908 (3,776,908) Pumping energy and line chemicals 13,187,702 13,187,702 6,776,501 6,411,201 Total Operating Expenses 21,434,545 21,434,545 19,665,597 1,768,948 Operating Income (Loss) 2,420,810 2,420,810 (2,377,903) (4,798,713) Nonoperating Revenues (Expenses): Assessments to member cities Debt service interest assessment 1,915,920 1,915,920 Other income 7,813 7,813 Federal grants 124,655 124,655 Investment income 1,819,545 1,819,545 Loss on disposal of asset (2,516) (2,516) Bond interest expense, net of amortized premiums 199,954 199,954 Other bond costs (13,929) (13,929) Total Nonoperating Revenues 4,051,442 4,051,442 Capital Contributions 684,897 684,897 Increase (Decrease) in Net Position $ 2,420,810 $ 2,420,810 $ 2,358,436 $ (62,374) Other Operating Sources (Uses): Well Maintenance Reserve utilization $ $ $ 637,249 $ 637,249 Dam andF Reservoir Reserve utilization 70,000 70,000 122,826 52,826 Well Replacement Reserve utilization 3,168,722 3,168,722 Other Reserve utilization 449,653 449,653 Federal grant utilization 124,655 124,655 Net inventory decrease 580,484 580,484 Construction fund miscellaneous income (3,139) (3,139) Net capitale expenditures (1,363,810) (1,363,810) (4,492,504) (3,128,694) Well Replacement Reserve (127,000) (127,000) (127,000) Well Maintenance Reserve (900,000) (900,000) (900,000) General Reserve (100,000) (100,000) (100,000) Other Reserve (859,950) (859,950) Total Other Operating Sources (Uses) (2,420,810) (2,420,810) (1,399,004) 1,021,806 Increase in Net Position after Other Operating Sources (Uses) $ $ $ 959,432 $ 959,432 Reconciliation to the Approved General 0&M Budget and Assessments to Member Cities for General 0&M costs Operating expenses $ 21,434,545 Pumping energy andl line chemicals (13,187,702) Capital expenditures 1,363,810 Reserve contributions 1,127,000 Total General Operation and Maintenance Budget 10,737,653 Reserve utilization (70,000) Assessments to member cities General 0&M costs $ 10,667,653 -62- Statistical Section (Unaudited) ur nicipal I B - a - E G h RMWA * Sinc ce 1953* * * * * CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 STATISTICAL SECTION NARRATIVE SUMMARY The information in this section is not covered by the independent Auditors' Report but is presented as supplemental data for the benefit ofthe readers of the Annual Comprehensive financial report (ACFR). The objectives of the statistical section information are to provide financial statement users with additional historical perspective, context and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess the Authority's overall financial health and current business needs. Contents Page Financial Trends 65-66 These schedules contain trend information to help the reader understand how the Authority's financial performance and well-being have changed over time. Revenue Capacity 67 These schedules contain information to help the reader assess the Authority's most significant local revenue source, the assessments to member cities. Debt Capacity 68 These schedules present information to help the reader assess the affordability of the Authority's current level of outstanding debt and the Authority's ability to issue additional debt in the future. Demographic and Economic Information 69-80 These schedules present information to help the reader understand the environment within which the Authority's financial activities take place. Operating Information 81-83 These schedules contain service and infrastructure data to help the reader understand how the information in the Authority's financial report relates to the services the Authority provides and the activities it performs. -64- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscaly Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Net Position Net investment in capital assets $ 260,746,021 $ 236,684,884 $ 223,022,882 $ 211,031,097 $ 201,087,885 $ 190,230,256 $ 180,551,018 $ 167,184,251 $ 154,074,007 $ 137,903,819 Restrictedi for debt service 50,179,031 70,238,397 83,582,352 96,885,211 117,440,962 130,799,750 142,080,365 160,360,765 171,903,499 183,221,813 Unrestricted 22,300,282 23,943,617 21,864,415 20,314,766 20,119,592 18,678,863 16,856,249 15,094,492 14,737,484 15,048,904 Total Net Position $ 333,225,334 $ 330,866,898 $ 328,469,649 $ 328,231,074 $ 338,648,439 $ 339,708,869 $ 339,487,632 $ 342,639,508 $ 340,714,990 $ 336,174,536 Note: Certain accounts in the prior year columns have been reclassified for comparative purposes to conform to the presentation int the current year column. -65- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River MunicipalWater. Authority Statements of Revenues, Expenses, and Changesi in Net Position Last Ten Fiscal' Years (accrual basis ofa accounting) Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Operating Revenues: Assessments to members cities General 0&M Costs $ 10,511,193 $ 9,640,215 $ 9,199,652 $ 6,980,113 $ 8,255,268 $ 9,228,230 $ 9,259,061 $ 9,541,638 $ 14,924,608 $ 5,762,240 Pumping: and chemicalcosts 6,776,501 8,869,745 7,604,523 5,695,080 4,517,314 5,157,602 6,603,580 7,769,111 5,734,395 7,702,843 Total Operating Revenues 17,287,694 18,509,960 16,804,175 12,675,193 12,772,582 14,385,832 15,862,641 17,310,749 20,659,003 13,465,083 Operating Expenses: Personnel costs 5,191,934 4,709,099 4,405,618 4,333,895 4,534,583 4,530,640 4,263,258 4,035,929 4,244,692 3,575,271 Professionalf fees 409,168 399,468 286,437 253,655 271,075 169,335 208,868 572,478 1,371,603 241,136 Purchased and contracted: services 1,591,853 606,148 1,207,566 757,811 374,911 992,745 1,122,773 1,086,755 1,522,484 1,291,355 Consumable supplies and materials 1,179,171 1,279,067 956,654 895,462 926,542 1,236,388 1,014,975 876,559 1,225,080 554,067 Recurring operating costs 740,062 708,806 619,564 551,741 637,759 661,653 575,629 630,574 818,568 513,447 Depreciation and amortization 3,776,908 3,760,453 3,750,937 3,736,113 3,767,447 3,751,171 3,690,530 3,602,424 3,495,414 3,449,032 Pumping energy andl line chemicals 6,776,501 8,869,745 7,604,523 5,695,080 4,517,314 5,157,602 6,603,580 6,926,873 5,140,047 7,289,768 Total Operating Expenses 19,665,597 20,332,786 18,831,299 16,223,757 15,029,631 16,499,534 17,479,613 17,731,592 17,817,888 16,914,076 Operating Income (Loss) (2,377,903) (1,822,826) (2,027,124) (3,548,564) (2,257,049) (2,113,702) (1,616,972) (420,843) 2,841,115 (3,448,992) Non operating Revenues (Expenses): Assessments to member cities: Debt service interest assessment 1,915,920 3,423,140 3,872,663 4,310,317 5,741,319 6,367,824 6,816,975 7,636,056 8,091,061 8,025,253 Other Income 7,813 6,756 6,196 8,544 6,507 7,673 7,682 11,721 4,805 8,540 Federal grants 124,655 Insurance proceeds (59,018) 59,018 Gain (loss) on disposal of asset (2,516) 29,552 20,036 9,400 24,342 Investmenti income 1,819,545 1,573,714 370,700 171,344 466,156 730,239 555,247 337,830 165,998 99,989 Bondi intereste expense, net of amortized premiums 199,954 (493,261) (1,496,486) (3,901,833) (4,185,565) (4,731,815) (5,381,780) (5,640,246) (6,571,925) (7,673,089) Credits to member cities for bond related activity (420,000) (520,000) (7,710,000) (831,798) (3,379,999) (3,111,475) Other bond costs (13,929) (165,591) (229,821) (477,770) (212,047) (508,756) Total Nonoperating Revenues (Expenses) 4,051,442 3,924,758 2,003,252 (7,569,846) 1,196,619 2,334,939 (1,534,904) 2,345,361 1,699,339 (3,135,196) Capital Contributions and Transfers: Contributions from member cities for construction. activity 684,897 365,939 262,447 701,045 Total Capital Contributions: and Transfers 684,897 365,939 262,447 701,045 Increase (Decrease) in Net Position 2,358,436 2,467,871 238,575 (10,417,365) (1,060,430) 221,237 (3,151,876) 1,924,518 4,540,454 (6,584,189) Beginning Net Position, as previously reported 330,866,898 328,469,649 328,231,074 338,648,439 339,708,869 339,487,632 342,639,508 340,714,990 336,174,536 342,758,725 Change in accounting principle (GASB 101) (70,622) Beginning Net Position, as restated 330,866,898 328,399,027 328,231,074 338,648,439 339,708,869 339,487,632 342,639,508 340,714,990 336,174,536 342,758,725 Net Position at End of Year $ 333,225,334 $ 330,866,898 $ 328,469,649 $ 328,231,074 $ 338,648,439 $ 339,708,869 $ 339,487,632 $ 342,639,508 $ 340,714,990 $ 336,174,536 Note: Certain accounts int the prior year financial statements have been reclassifiedf for comparative purposes to conform tot the presentationi int thec current year financials statements. -66- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 HISTORICAL WATER DELIVERIES TO MEMBER CITIES (Calendar Year) CRMWAI Member Cities Historical Usage 100,000 90,000 80,000 70,000 50,000 50,000 40,000 30,000 CRMWAL Lake Meredith CRMWA Wells 20,000 10,000 BN m Historical Usage (Acre-feet) Year Lake Year Lake Year Lake Wells Total 2002 54,689 30,559 85,248 1966 89 1984 73,223 2003 57,899 33,728 91,627 1967 411 1985 72,810 2004 36,518 36,611 73,129 1968 29,292 1986 65,679 2005 47,215 35,501 82,715 1969 56,229 1987 62,516 2006 41,837 40,125 81,962 1970 58,922 1988 64,332 2007 33,430 37,676 71,106 1971 60,325 1989 67,841 2008 28,050 40,442 68,492 1972 60,954 1990 71,259 2009 35,540 36,242 71,782 1973 59,269 1991 70,028 2010 32,405 39,604 72,009 1974 66,959 1992 70,365 2011 8,287 61,039 69,326 1975 65,702 1993 70,982 2012 62,909 62,909 1976 63,820 1994 69,426 2013 - 63,786 63,786 1977 62,344 1995 70,686 2014 2,466 59,181 61,647 1978 69,053 1996 74,480 2015 9,934 56,862 66,796 1979 72,745 1997 73,058 2016 12,487 47,455 59,942 1980 77,241 1998 81,000 2017 9,647 57,274 66,921 1981 69,143 1999 80,474 2018 17,931 50,645 68,576 1982 66,128 2000 86,488 2019 14,700 47,059 61,759 1983 69,345 2001 78,842 2020 17,323 51,412 68,735 2021 14,181 53,628 67,809 2022 15,422 57,164 72,586 2023 17,253 52,518 69,771 -67- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Ratios of Outstanding Debt by Issue Last Ten Fiscal Years Fiscal Year Contract Revenue Bonds 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Conjunctive Use Groundwater Series 2005 2012 Refunding $ $ $ $ 26,717,483 $ 32,744,515 $ 35,231,548 $ 37,638,580 $ 39,965,613 $ 42,232,646 $ 44,429,679 Conjunctive Use Groundwater Series 2012 2021 Refunding 4,905,485 13,008,012 19,215,537 Conjunctive Use Groundwater Series 2005 Partial Refunding- 2014 Refunding 2,633,366 5,283,723 7,814,080 10,259,437 12,639,793 Conjunctive Use Groundwater Series 2006 2,190,000 Conjunctive Use Groundwater Series 2006 2014 Refunding 17,411,394 20,502,691 23,463,989 26,305,286 29,031,583 31,647,880 34,179,177 34,585,474 Conjunctive Use Groundwater Series 2014 2023 Refunding 8,689,723 12,866,130 Conjunctive Use Groundwater Series 2009 970,000 15,659,960 16,571,988 17,449,015 Conjunctive Use Groundwater Series 2009 2017 Refunding 6,523,277 7,782,393 8,991,509 10,160,625 11,289,741 12,388,857 12,502,974 Bureau of Reclamation! Project Series 1999 2010 Refunding 2,259,429 3,428,584 4,567,739 Conjunctive Use Groundwater Series 1999 2010 Refunding 987,486 1,437,054 1,871,622 2,291,190 2,705,759 Conjunctive Use Groundwater Series 2011 59,709,866 63,871,972 67,854,077 71,696,183 75,373,288 78,895,394 Conjunctive Use Groundwater Series 2011 2020 Refunding 36,027,917 43,705,244 48,292,571 52,724,897 Total Outstanding Debt $ 56,146,402 $ 77,361,779 $ 93,911,011 $ 110,105,696 $ 127,208,111 $ 141,418,515 $ 154,717,991 $ 170,914,767 $ 184,336,310 $ 197,462,853 Per Capita (1) $ 100 $ 138 $ 169 $ 197 $ 223 $ 250 $ 276 $ 309 $ 341 $ 368 Note: Details regardingt the Authority'so soutstandingd debto can be found int ther notes tot thet financials statements. (1)P Population data can! bet found int the Member City Population section on page 69. -68- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Member City Population Last Ten Fiscal Years Year Amarillo Borger Brownfield Lamesa Levelland Lubbock O'Donnell Pampa - Plainview Slaton Tahoka Total 2024 204,512 12,228 8,936 8,674 12,632 266,289 704 17,560 20,187 5,682 2,449 559,853 2023 203,463 12,612 8,936 8,674 12,652 267,825 704 17,670 20,187 5,746 2,449 560,918 2022 202,434 12,640 8,936 8,524 13,500 265,002 653 16,474 20,187 5,858 2,763 556,971 2021 201,412 12,640 8,936 8,674 13,504 265,531 835 17,263 20,187 6,275 2,727 557,984 2020 208,945 12,856 9,314 9,463 13,518 266,859 837 17,222 22,194 6,275 2,677 570,160 2019 206,876 12,437 9,314 9,463 13,568 264,388 795 17,241 22,194 6,275 2,677 565,228 2018 204,828 12,508 9,314 9,422 13,771 261,946 807 17,411 22,194 6,275 2,677 561,153 2017 202,800 12,631 9,779 9,422 13,966 254,565 807 17,519 22,194 6,275 2,677 552,635 2016 201,430 12,847 9,725 9,422 14,060 243,736 800 17,863 22,194 6,275 2,570 540,922 2015 199,744 12,978 9,757 9,115 14,114 241,322 800 18,275 22,194 6,250 2,553 537,102 % Population Change 2.39% -5.78% -8.41% -4.84% -10.50% 10.35% -12.00% -3.91% -9.04% -9.09% -4.07% 4.24% 1. Restated to report the population of the City of Pampa only (not including other parts of Gray County). Sources: Member City ACFR's, 2010 and 2020 United States Census -69- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Assessments to Member Cities Current Year and Nine Years Ago 2024 2015 Percentage of Percentage of total total Member City Assessments 1 Rank Assessments Assessments 1 Rank Assessments Amarillo $ 6,662,869 1 38.54% $ 5,094,282 1 37.83% Lubbock 6,441,248 2 37.26% 5,068,031 2 37.64% Pampa 1,240,984 3 7.18% 738,544 3 5.48% Borger 697,159 4 4.03% 499,866 5 3.71% Levelland 574,156 5 3.32% 561,176 4 4.17% Brownfield 502,352 6 2.91% 424,113 7 3.15% Lamesa 403,592 7 2.33% 280,071 8 2.08% Plainview 357,307 8 2.07% 484,246 6 3.60% Slaton 274,875 9 1.59% 211,632 9 1.57% Tahoka 89,384 10 0.52% 69,946 10 0.52% O'Donnell 43,768 11 0.24% 33,174 11 0.25% $ 17,287,694 100.00% $ 13,465,081 100.00% Notes: 1 Assessments to member cities includes General Operation and Maintenance costs (GOM) and Pumping, Chemical and Energy costs (PEC) less groundwater conservation district fees Source: Canadian River Municipal Water Authority Records -70- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Principal Employers of Member Cities Current Year and Nine Years Ago 2023 2014 Percentage of Percentage of Individual Individual Member City Member City Name of Employer City Employees Rank Employment Employees Rank Employment 1 Covenant Health System Lubbock 5,845 1 3.680% 4,368 2 3.090% Texas Tech University Lubbock 5,588 2 3.520% 5,115 1 3.620% Amarillo independent School District Amarillo 4,500 3 3.499% Tyson Foods Amarillo 4,300 4 3.344% 3,678 3 2.847% Lubbock independent School District Lubbock 4,243 5 2.670% 3,456 5 2.450% University Medical Center Lubbock 4,090 6 2.580% 3,327 6 2.360% CNS Pantex Amarillo 3,844 7 2.989% TTU Health Sciences Center Lubbock 3,694 8 2.330% 3,280 7 2.320% United Supermarkets (Corporate) Lubbock 3,400 9 2.140% 3,622 4 2.570% Baptist/St. Anthony's Health Systems Amarillo 3,100 10 2.411% 2,900 8 2.245% City of Lubbock Lubbock 2,256 9 1.600% Northwest Texas Healthcare Amarillo 1,490 10 1.153% 42,604 33,492 Notes: 1 The percentage is based on the specific member city employee data not the member cities employees in total Source: Member Cities ACFR's -71- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Principal Water Customers of the Member Cities Current Year and Nine Years Ago 2023 2014 Percentage of Average Percentage of Average Monthly City's Average Monthly City's Average Consumption Annual Water Consumption Annual Water Name of Customer City (Gallons) Rank Consumption (Gallons) Rank Consumption Xcel Energy Amarillo 268,016,000 1 19.08% 9,139,750 0.69% WRB Refining / Phillips 66 Borger 149,126,000 2 39.47% 37,352,333 3 15.65% Tyson Fresh Meats Amarillo 128,806,000 3 9.17% 140,255,583 1 10.55% Nutrien / Agrium U.S. Inc. Borger 91,538,000 4 24.23% 101,695,083 2 42.60% Texas Tech University Lubbock 27,873,667 5 2.57% 27,752,917 5 2.59% Orion Engineered Carbon Borger 27,775,000 6 7.35% 20,013,833 9 8.38% Sid Richardson / Tokai Carbons Borger 24,575,000 7 6.50% 22,856,500 8 9.57% City of Canyon Amarillo 22,105,000 8 1.57% 24,344,167 7 1.83% TDCJ (Clements & Neal Units) Amarillo 20,628,000 9 1.47% 33,388,971 4 2.51% SWPS Corning Amarillo 16,687,000 10 1.19% Lubbock Parks Department Lubbock 25,800,583 6 2.41% Owens Corning Amarillo 16,642,334 10 1.25% 777,129,667 459,242,054 The Authority supplied 56%, 27%, and 68% of Amarillo's, Borger's and Lubbock's total water consumption in 2023 The Authority supplied 54%, 31%, and 58% of Amarillo's, Borger's and Lubbock's total water consumption in 2014 Sources: 2014 and 2023 Continuing Disclosure Reports -72- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Canadian River Municipal Water Authority Full-time Equivalent Employees by Division Last Ten Fiscal Years Full-time Equivalent Employees as of September 30 Function 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Management 4 4 4 4 4 4 4 4 4 4 Northern Operations Division 26 26 26 26 26 26 26 26 26 25 Water Quality Division 2 2 2 2 2 2 2 2 2 2 Southern Operations Division 7 7 7 8 8 8 8 8 8 8 Financial Services Division 4 4 4 2 2 2 2 2 2 2 Water Quality Division Logan, New Mexico 2 2 2 2 2 2 2 2 2 2 Total 45 45 45 44 44 44 44 42 43 44 Source: Quarter 3 Form 941 - Employers Quarterly Federal Tax Return -73- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 LAKE MEREDITH WATERSHED AREA à 64 64 Lake Meredith Watershed 645 Area A 1049 Cimarron 563 Guymon Oklahoma Colfax Clayton 287 Union 385 Lake Meredith Watershed.. 6,050 sq mi 56 raoru 0 12.5 25 50 Miles Dallam Shherman spear mar Dalhart Moxa Texas New Mexico Harding 87 Dumas Huchinson Mosquero Hartley loore Stinnett Lake Meredith Channing a Conchas Reseryoir 0 Bargar - San Miguel Ute Reservoir iey Canadi un T Oldham Potte) Carson Panhandle 603 Nega Tucumcari 385 Ale 66 5 66 Quay 60 287 Claude Guadalupe Canyon Deaf Smith Randall Armstrong Heréford 843 Cury 60 -74- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 LAKE MEREDITH To SrONe 152 6 9 HWy. C & - / % * BOUNDARY OF PROJECT LAos- & - So C EEK % a FRITCH T ORT E : - SWIMMIN AREA A SANFORD DAM IDE SANFORD FRITCH - - 68 velopment Alibotes EXPLANATION National Monument STATE HIGHWAYS Existing - - Proposed : STATES THE! COUNTY ROADS BUREAU RECL AEReT - Existing CAI M. VAL DIAN RIVER PROJECT - TEXAS ---= Proposed E 2 PUBLIC USE AREA ROADS LAKE MEREDITH - - - Paved ITTTTE Grovel or graded S ANe o II T Proposed 30' SCALEO OF MILES Trall Roads 662-525-1435 Location Canadian River Mile 508.5 Project Purposes Flood control, water supply, irrigation, recreation, fish and wildlife -75- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 LAKE MEREDITH ELEVATIONS AND STORAGES Reservoir Area Original Reservoir Capacity Basedo on 1995 Survey Feature Elevation Reservoir Capacity (acres) (acre-feet) (acre feet) Top of Dam 3011.0 Maximum pool 3004.9 30,470 2,434,200 Top off flood control pool 2965.0(2) 21,640 1,407,600 Bottom oft flood control pool 2941.3 17,320 945,500 Top of conservation pool 2941.3 17,320 945,500 (ultimate) Top of conservation pool 2936.5 16,500 864,400 817,970 (initial) Top of inactive pool 2860.0 4,500 79,200 73,443 Top of dead pool 2850.0 2,770 43,000 38,414 Surcharge storage 2965.0 - 3004.9 1,026,600 Flood control storage 2941.3 - 2965.0 462,100 (3) Conservation storage 2860.0 2941.3 866,300 (4) (initial) Storage between top of initial and ultimate 2936.5 2941.3 81,100 conservation pools Dead and inactive storage 2813.0-1 2860.0 79,200 (1) Spillway crest (2) Contains 36,300 acre-feet for sediment storage (3) Contains 366,300 acre-feet for sediment storage (4) The initial top of the conservation pool at elevation 2936.5 provides 500,000 acre-feet of conservation capacity permitted under the terms oft the Canadian River Compact with allowance for the portion of the 50-year sediment inflow expected to deposit below the top of the conservation pool. The top of the conservation pool will be raised, as necessary, to elevation 2941.3to preserve the conservation capacity. Any water temporarily stored between elevations 2936.5 and 2941.3 will be released by the Bureau of Reclamation, or its designated agent, through the river outlet works. Such evacuations will be at rate of 2,800 cfs, or less. (5) 1995 Volumetric Survey only went up to elevation 2936.50. Elevations above this are assumed to have changed by at least this same value. -76- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 AQUEDUCT SYSTEM Palur JOHN C, WILLIAMS B ae à 9e WELLFIELD & LAKE MEREDITH RESERVOIR BORGER S - CANADIAN RMVER UTE RESERVOIR - B a 3 PA MPA Angt si LAKE MEREDITH SALINITY CONTROL PROJECT 2503 AMARILLO NGY 2440e sN PLAINVIEW 4 a Be ins LEVELLA ND eay - Crosty Eioas E LUBBOCK - 400 ST ED /NJ a SLAT TON John C. Williams Wellfield TAHOKA: Member Cities BROWNFIELD CRMWA Pipeline 75a Ute Reservoir O'DONNELL w Lake M eredith 510 20 30 Miles CRMWA Water Rights des LAMES SA ny der -77- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Lake Meredith Historical Inflow 280,000 270,000 260,000 250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000 170,000 3 160,000 150,000 140,000 AVG Inflow 1965-2000 130,000 O o 120,000 Droughto 14y year ofRecord 110,000 100,000 90,000 80,000 70,000 60,000 AVGInflow 2001-2023 50,000 40,000 30,000 20,000 ough 10,000 Historical Inflow Year (Acre-Feet) Year (Acre-Feet) Year (Acre-Feet) 1965 236,666 1985 76,871 2005 62,937 1966 56,171 1986 108,734 2006 34,843 1967 153,525 1987 166,609 2007 42,535 1968 64,270 1988 163,481 2008 66,781 1969 270,416 1989 110,295 2009 25,931 1970 93,092 1990 73,884 2010 28,745 1971 160,553 1991 130,696 2011 5,446 1972 221,987 1992 130,988 2012 8,827 1973 66,422 1993 76,324 2013 21,546 1974 109,340 1994 165,734 2014 52,933 1975 92,222 1995 154,054 2015 138,449 1976 84,150 1996 186,715 2016 38,317 1977 106,319 1997 145,566 2017 134,371 1978 104,088 1998 86,915 2018 51,394 1980 63,060 1999 193,741 2019 74,760 1981 242,804 2000 98,695 2020 33,270 1982 250,560 2001 51,073 2021 52,424 1983 61,316 2002 40,078 2022 39,321 1984 69,396 2003 37,965 2023 129,734 as of 2004 97,616 9/30/2024 33,539 -78- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Lake Meredith - Historical Depth 110 April1 1973 101.85ft 100 90 September2 2024 75.28ft 80 70 8 60 50 Deada andinactivet Pool 40 30 20 August 2013 26.14ft 10 8 8 a 8 8 e 5 6 € a a - 5 E € 8 8 8 8 3 8 3 a 6 - & : 3 - 5 7 5 - 5 8 a a a & & a 8 a a a a - & a a R R R R a a a a A a Lake Meredith Historical Storage 600,000 September 1972 542,730Acre-ft 101.65ft 500,000 100,000 Septermber 2024 237,020Acre-ft 00 Q,000 75.28ft N 200,000 100,000 -79- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 Historical Depth / Storage Levels As of Storage As of Depth Storage September 30 Depth (ft) (Acre-Feet) September 30 (ft) (Acre-Feet) 1965 64.87 181898 1995 86.69 353,119 1966 71.60 231,676 1996 92.20 409,345 1967 81.95 322,750 1997 93.87 403,934 1968 81.37 317,224 1998 85.47 319,999 1969 95.16 462,991 1999 94.80 414,094 1970 93.02 438,305 2000 87.28 336,736 1971 91.10 416,842 2001 81.04 281,584 1972 101.65 542,730 2002 70.51 203,810 1973 98.13 477,964 2003 62.33 152,310 1974 92.37 411,876 2004 62.21 151,600 1975 92.38 411,985 2005 63.91 161,760 1976 87.78 364,003 2006 55.09 111,890 1977 86.84 354,724 2007 52.71 99,750 1978 83.23 320,421 2008 50.50 89,083 1979 78.53 278,800 2009 47.22 74,381 1980 70.61 216,208 2010 40.00 48,955 1981 84.73 334,407 2011 30.91 24,526 1982 93.88 427,646 2012 29.50 21,873 1983 91.79 404,961 2013 33.50 29,842 1984 83.76 325,355 2014 44.81 64,471 1985 78.07 275,030 2015 60.57 142,050 1986 76.39 261,078 2016 63.28 157,970 1987 86.05 346,947 2017 68.76 192,210 1988 90.04 386,610 2018 72.76 219,170 1989 89.07 376,692 2019 75.59 239,270 1990 82.34 312,351 2020 73.60 225,040 1991 82.22 311,266 2021 73.21 222,310 1992 85.69 343,502 2022 69.68 198,270 1993 80.06 292,091 2023 79.16 268,320 1994 82.30 311,989 2024 75.28 237,020 -80- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 CRMWA Historical Cost vs Deliveries $25, 0, ,000 70,000 60,000 $20,000,000 50,000 $15,000,00 0 40,000 3 3 € 30,000 $10,000,000 20,000 $5,000,000 10,000 $ /A A A / / A A A A / / A / / / / A / A / AA A / - General Operationa and Maintenance Costs PumpingE Energy: andL Line Chemical Costs ake -Wells Acre-F -Feet Acre- Feet Lake Wells Total Total General Operation Pumping Energy Bond Total Member Total Cost per Total Cost per Fiscal Year Acre-Feet Acre-Feet Acre-Feet KWHr and Maintenance and Line Payments 1 City Cost Acre-Foot 1,000 Gallons Costs Chemical Costs 2001/2002 61,867 26,763 88,630 118,501,731 $ 4,099,573 $ 4,483,588 $ 6,359,733 $14,942,894 $ 169 $ 0.52 2002/2003 57,079 30,576 87,654 124,393,081 $ 4,210,200 $ 4,653,083 $ 6,005,785 $14,869,067 $ 170 $ 0.52 2003/2004 39,041 38,043 77,084 120,176,204 $ 4,023,905 $ 5,564,344 $ 6,016,681 $15,604,930 $ 202 $ 0.62 2004/2005 45,915 34,162 80,077 121,047,125 $ 4,441,227 $ 6,309,561 $ 6,316,757 $17,067,545 $ 213 $ 0.65 2005/2006 42,635 38,669 81,304 126,888,698 $ 4,685,346 $ 7,942,665 $ 8,818,664 $21,446,675 $ 264 $ 0.81 2006/2007 34,648 38,392 73,040 119,338,682 $ 5,008,562 $ 7,046,193 $13,694,762 $25,749,517 $ 353 $ 1.08 2007/2008 30,508 40,706 71,215 118,579,357 $ 5,218,898 $ 8,035,218 $12,879,400 $26,133,515 $ 367 $ 1.13 2008/2009 33,552 36,406 69,959 116,086,293 $ 5,634,272 $ 6,181,500 $12,822,044 $24,637,816 $ 352 $ 1.08 2009/2010 33,230 38,018 71,247 123,969,388 $ 5,197,688 $ 6,127,440 $13,753,463 $25,078,591 $ 352 $ 1.08 2010/2011 14,601 55,695 70,297 145,467,623 $ 5,302,842 $ 7,702,444 $14,068,856 $27,074,143 $ 385 $ 1.18 2011/2012 62,562 62,562 146,264,706 $ 5,653,120 $ 7,124,401 $19,027,670 $31,805,190 $ 508 $ 1.56 2012/2013 64,030 64,030 146,184,719 $ 5,859,319 $ 7,369,273 $19,744,674 $32,973,266 $ 515 $ 1.58 2013/2014 2,131 60,549 62,680 145,272,690 $ 5,937,108 $ 8,392,506 $20,427,944 $34,757,559 $ 555 $ 1.70 2014/2015 6,300 59,676 65,976 145,511,467 $ 5,762,240 $ 7,702,843 $19,306,441 $32,771,524 $ 497 $ 1.52 2015/2016 14,948 44,724 59,672 118,559,009 $ 14,924,608 $ 5,734,395 $19,642,479 $40,301,482 $ 675 $ 2.07 2016/2017 8,408 60,195 68,604 142,272,373 $ 9,541,638 $ 7,769,111 $19,590,967 $36,901,716 $ 538 $ 1.65 2017/2018 18,036 52,860 70,896 141,406,653 $ 9,259,061 $ 6,603,580 $19,477,230 $35,339,871 $ 498 $ 1.53 2018/2019 14,453 47,337 61,790 124,346,198 $ 9,228,230 $ 5,157,602 $18,535,382 $32,921,214 $ 533 $ 1.64 2019/2020 16,671 48,233 64,904 130,076,847 $ 8,255,268 $ 4,517,314 $18,617,809 $31,390,391 $ 484 $ 1.48 2020/2021 13,898 53,580 67,478 138,434,042 $ 6,980,113 $ 5,695,080 $17,649,078 $30,324,272 $ 449 $ 1.38 2021/2022 15,785 56,196 71,981 152,142,727 $ 9,199,652 $ 7,604,523 $17,346,646 $34,1 150,821 $ 474 $ 1.46 2022/2023 16,715 54,380 71,095 146,606,141 $ 9,640,215 $ 8,869,745 $17,169,784 $35,679,743 $ 502 $ 1.54 2023/2024 16,862 50,650 67,512 136,665,140 $ 10,511,193 $ 6,776,501 $17,074,204 $34,361,899 $ 509 $ 1.56 NOTES: 1. Includes the fees assessed to member cities tot fund reserves up until FY1718 when the surcharges were eliminated and included in the 0&M budget instead 2. Includes both interest and principal -81- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 MEMBER CITIES' WATER ALLOCATIONS (Fiscal Year) Water Deliveries to Member Cities Amarillo Borger Brownfield Lamesa Levelland Lubbock O'Donnell Pampa Plainview Slaton Tahoka Acre-feet ACRE-FEET FY01-02 35,493 3,597 1,597 1,629 2,005 36,706 147 2,263 3,892 959 342 88,630 FY02-03 35,399 3,799 1,534 1,787 2,024 35,042 146 2,752 3,844 994 333 87,654 FY03-04 32,100 3,966 1,309 1,474 1,580 29,982 141 2,107 3,050 1,056 319 77,084 FY04-05 33,350 3,534 1,260 1,491 1,763 32,981 113 1,297 3,006 1,000 282 80,077 FY05-06 32,967 3,241 1,513 1,729 1,903 32,809 149 2,505 3,052 1,184 252 81,304 FY06-07 31,409 3,731 1,197 1,778 1,545 29,096 115 1,668 1,330 914 257 73,040 FY07-08 26,034 3,383 1,259 1,644 1,565 30,766 126 2,450 2,597 1,093 298 71,215 FY08-09 24,772 3,606 1,363 1,665 1,780 29,764 113 2,485 3,121 959 331 69,959 FY09-10 27,794 3,666 1,334 1,658 1,740 29,367 103 2,632 1,879 785 289 71,247 FY10-11 27,724 4,159 1,496 1,756 1,860 26,943 130 2,306 2,569 1,036 318 70,297 FY11-12 26,862 2,667 1,415 1,219 1,511 23,232 114 2,133 2,237 899 274 62,562 FY12-13 26,810 3,230 1,450 1,090 1,660 23,920 104 2,110 2,370 986 300 64,030 FY13-14 26,969 2,873 1,383 1,040 1,725 22,506 108 2,201 2,607 942 326 62,680 FY14-15 28,861 2,863 1,409 1,081 1,816 24,205 103 1,950 2,587 786 316 65,976 FY15-16 26,815 3,688 1,360 1,212 1,695 19,522 107 2,401 1,790 786 297 59,673 FY16-17 29,660 3,589 1,365 1,193 1,859 24,331 119 2,557 2,704 878 348 68,604 FY17-18 31,046 3,568 1,466 1,145 1,760 25,591 123 2,296 2,592 1,001 308 70,896 FY18-19 25,884 3,132 1,350 1,086 1,707 22,702 109 2,242 2,408 899 270 61,790 FY19-20 26,355 3,641 1,458 1,273 1,744 23,958 99 2,547 2,680 859 291 64,904 FY20-21 30,598 3,004 1,326 1,351 1,627 22,853 126 2,452 2,826 1,003 313 67,478 FY21-22 30,408 4,570 1,314 1,318 1,672 25,763 135 2,530 2,912 1,024 336 71,981 FY22-23 28,713 3,872 1,278 1,351 1,548 29,010 107 2,471 1,471 951 323 71,095 FY23-24 30,607 3,838 1,191 1,390 1,239 25,206 95 2,204 439 971 331 67,512 Proposed FY24-25 33,723 5,050 2,000 1,983 2,539 33,723 253 6,518 3,359 1,434 419 91,000 FY23-24 45.3% 5.7% 1.8% 2.1% 1.8% 37.3% 0.1% 3.3% 0.6% 1.4% 0.5% 100.0% Proposed FY24-25 37.1% 5.5% 2.2% 2.2% 2.8% 37.1% 0.3% 7.2% 3.7% 1.6% 0.5% 100.0% 5y yr avg 42.6% 5.4% 2.0% 1.9% 2.4% 36.9% 0.2% 3.6% 3.1% 1.4% 0.5% 100.0% YTD avg 41.5% 5.0% 1.9% 2.0% 2.4% 38.4% 0.2% 3.2% 3.6% 1.3% 0.4% 100.0% -82- CANADIAN RIVER MUNICIPAL WATER AUTHORITY Statistical Section Year Ended September 30, 2024 GENERAL OPERATION AND MAINTENANCE BUDGET COMPARISON 2022 - 2023 2023 - 2024 2023/2024 Budget Final Final VS CRMWA (includes CORP) Budget Budget 2022/2023 Budget TOTAL PAYROLL EXPENSES $ 4,972,453 $ 5,036,236 $ 63,783 1.28% TOTAL PROFESSIONAL FEES 504,639 688,689 184,050 36.47% TOTAL CONTRACTED SERVICES 323,832 277,469 (46,363) (14.32%) TOTAL CONSUMABLE SUPPLIES 944,675 1,078,995 134,320 14.22% TOTAL RECURRING EXPENSES 653,414 703,261 49,847 7.63% TOTAL CAPITAL OUTLAY 295,020 1,363,810 1,068,790 362.28% TOTAL RESERVE CONTRIBUTIONS 2,000,000 1,127,000 (873,000) (43.65%) CRMWA CORP: OPERATING EXPENSES 557,092 462,193 (94,899) (17.03%) GRAND TOTAL 0&M $ 10,251,125 $ 10,737,653 $ 486,528 4.75% Note: Refer to page 62 for the reconciliation of the general operation and maintenance budget to the budget for operating expenses. CRMWA BUDGET SUMMARY FY23/24 Estimated Estimated Bond Allocation Costper CITY 0&M PEC Payments TOTAL 1,000 gal 1,000 gal AMARILLO $ 3,543,807 $ 4,822,197 $ 7,722,036 $ 16,088,040 10,747,094 $ 1.50 BORGER 464,857 494,811 1,054,855 $ 2,014,523 1,609,251 1.25 BROWNFIELD 383,599 444,073 417,834 $ 1,245,505 637,436 1.95 LAMESA 317,716 288,445 414,244 $ 1,020,406 631,926 1.61 LEVELLAND 474,708 611,092 466,101 $ 1,551,901 809,121 1.92 LUBBOCK 4,164,705 4,905,558 5,284,961 $ 14,355,224 10,747,094 1.34 O'DONNELL 48,260 36,800 52,856 $ 137,916 80,622 1.71 PAMPA 579,332 826,613 684,386 $ 2,090,331 2,077,323 1.01 PLAINVIEW 424,557 488,597 701,653 $ 1,614,807 1,070,417 1.51 SLATON 200,570 208,623 299,607 $ 708,800 457,052 1.55 TAHOKA 65,542 60,893 87,441 213,876 133,403 1.60 FY23/24 Budget Allocated to Member Cities $10,667,653 $13,187,702 $ 17,185,974 $ 41,041,329 BOR: Share - Dam & Reservoir 70,000 70,000 Total FY23/24 Original Budget $10,737,653 $13,187,702 $ 17,185,974 $ 41,111,329 29,000,739 $ 1.42 NOTE: Based on estimated usage of 89,000 AF (29 billion gallons). Approximately 69,000 AF Groundwater and 20,000 AF Lake water. -83- Municipal B abbock V = - E G CRMWA - * Since 1953* * * * * PICKENS & FRANCIS, LLC DPOHE CERTIFIED PUBLIC ACCOUNTANTS aF 301 S. Polk, Suite 800 PO. Box 9938 Amarillo, TX79105-5938 806.373.3011 Fax: 806.376.8126 www.dplcpa.com To the Board of Directors Canadian River Municipal Water Authority Sanford, Texas INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities of the Canadian River Municipal Water Authority (the Authority), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated December 1, 2024. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deticiencies, in internal control, such that there is a reasonable possibility that a material misstatement oft the Authority's financial statements will not bej prevented, or detected and corrected, on a timely basis. A significant deficiency: is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. -85- Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. OSAER, Acksus 1 Femes, L.LE. DOSHIER, PICKENS & FRANCIS, LLC Amarillo, Texas December 1, 2024 -86- Municipal A A Lbbock V - - E 6 y CRMWA a L 4 * Since 1953* * * * * * CRMWA Lake Meredith Salinity Control Project Evaluation Phase 2 Project Update Board Meeting January 15, 2025 Revised 1/16/25: Addition of modeled member city 5R well water levels and 2030 and 2080 simulated saturated thickness maps 01 Lake Meredith Yield Update 02 Water Supply Plan Development 03 River Alluvium Sampling Plan Salinity Control Project Well Field Lake Meredith Yield Update Task 2. Update of Lake Meredith Firm Yield = Draft Results Historical Lake Meredith Inflows 500,000 "Traditional" reservoir firm yield 1940-1969 - Average = 280,000 acft/yr Streamflow simulates historical hydrology 400,000 1970-1999 Average = 121,000 acft/yr Assumes reservoir begins simulation full 300,000 2000-2023 Average = 52,000 acft/yr Does not typically consider 00 water quality 100,000 Does not consider system operations 1940 1950 1960 1970 1980 1990 2000 2010 2020 Calendar Years Task 2. Update of Lake Meredith Firm Yield = Draft Results Simulated Firm Yield Storage Trace Traditional Firm Yield Summary Table 600,000 Streamflow Simulated Conservation Pool Storage Model Firm Simulation Yield 500,000 500,000 Study Period (ac-ft/yr) 400,000 400,000 # 1987 HDR Study 1940-1984 64,570 e E e 2024 Region A RWP 1940-2017 28,200 300,000 300,000 a 9 2024 LRWSP 1940-2023 27,800 200,000 200,000 S 100,000 100,000 3 U 1940 1950 1960 1970 1980 1990 2000 2010 2020 Firm Yield Demand = 27,800 ac-ft Task 2. Update of Lake Meredith Firm Yield = Draft Results CRMWA Member Cities Historical Usage 45 45 Other Key Considerations 40 40 Starting storage of lake 35 35 Gily Supply 30 30 Water quality constraints 25 20 System operations 5 15 CRMWAlake CRMWA Wells Hydrologic trends and 10 10 projections a 8 8 8 8 a 5 9 S - S a 5 a a 8 E 8 B 2 e e 8 8 e e 8 8 8 B 8 8 8 8 e & a 8 8 a 8 e e - e e e e a e de 8 B B a a Task 2. Update of Lake Meredith Firm Yield = Draft Results 110,000 Historical Simulated 800,000 2,400 100,000 Historical - Simulated 90,000 700,000 2,100 80,000 Chloride Concentration 600,000 1,800 E 70,000 Reservoir Storage € I 60,000 500,000 1,500 - 3 - 50,000 400,000 1,200 I 40,000 AverageLake Use I 300,000 900 30,000 (14,600ac-ft/vr) : 20,000 I 200,000 600 10,000 100,000 300 1960 1970 1980 1990 2000 2010 2020 2030 2040 Lake Meredith CRMWA Wells Current average usable water from Lake Meredith = 14,600 ac-ftlyr 02 Water Supply Plan Development Task 3.2 Demands - Amarillo Member City Fact Sheets City of Amarillo 2030 2040 2050 2060 2070 2080 Population 212,036 224,901 234,909 242,745 250,556 258,303 Demand 46,830 49,513 51,716 53,441 55,161 56,866 Borger (acre-feet per year) Mm arillo CityofE Borger 2030 2040 2050 2060 2070 2080 (acre-feet Existing) Water Supply 45,366 44,674 43,701 41,309 38,812 38,259 pery year) Population 12,269 12,106 11,807 11,462 11,138 10,841 Needs or Surplus -1,464 4,839 -8,015 -12,132 -16,349 -18,607 Demand (acre-feetp per year) (acre-feet per year) 3,535 3,480 3,394 3,295 3,201 3,116 ew Amarillo share of Lake Meredith: 37.058% Existing (acre-feet Water per year) Supply 3,569 3,358 3,116 2,885 2,671 2,546 Amarillo share of John C. Williams Wellfield: 40.621% Needs (acre- -feetp or Surplus per year) 34 -122 -278 -410 -530 -570 Capacity of CRMWA Pipeline: 41.69 MGD Slaton d Tahoka Borger share of Lake Meredith: 5.549% City Supply: ODo Borger share of John C. Williams Wellfield: 5.549% 129 municipal wells (Daily Capacity of 65 MGD) Capacity of CRMWAI Pipeline: 10.48 MGD 500 MG Reservoir (Treatment Plant Capacity: 48 MGD) City Supply: Other Cities Served by Amarillo: City of Canyon (Up to 1.5 MGD) . Wellfield Daily Capacity of 13.0 MGD Amarillo Historical Usage 20 20 6 Borger- Historical Usage 18 as 948 5,000 5,000 723 18 7.77 594 601 865 865 7er 743 755 4,500 4,500 16 7.34 727 16 3251 56 640 563 31es 5.70 658 4,000 4,000 14 2707 3.89 610 14 2A2 447 3,500 3,500 aa 12 4 City Supply 12 E 3,000 1amamta 3,000 404 aas 472/sa4 3 10 10 Z,500 UGRTA A uare 2,500 5.03 503 7171 792 7.73 13E 1' City Supply 9.05 asier 738 7141774 7.00 I 2,000 197 2,000 B 430 862 aza 25 8 12 739 47 76 4.57 615 1,500 1,500 27 CRMWA Wélls 56a 1,000 24 1,000 .04 4.58 453 428 500 CRMWA We 500 342 CR 2 CRMWA Lake 63 21 2 01 42 # I I 1 I I I a I I a E a € a & a € a € I I 8 I a 8 a # I a a a a a a & & a & & * & & 8 I # Task 3.2 Demands - Lubbock City ofLubbock 2030 2040 2050 2060 2070 2080 Member Fact Sheets (continued) Population 300,165 333,391 City 367,043 409,890 455,805 505,009 Lubb Plainview Demand (acre-feet 52,502 58,086 63,949 71,414 79,414 87,986 per year) rillo City of Plainview 2030 2040 2050 2060 2070 2080 Existing (acre-feet Water per year) Supply 52,183 51,905 47,284 43,367 38,783 38,301 Population 22,403 22,403 22,403 22,403 21,395 20,347 Needs or Surplus -319 -6,181 -16,665 -28,047 -40,631 -49,685 (acre-feet per year) Demand (acre-f -feet per year) 4,075 4,060 4,060 4,060 3,877 3,687 Pla Existing (acre-f feet Water Supply 8,413 8,378 8,370 8,402 8,361 8,257 Lubbock share of Lake Meredith: 37.058% pery year) Needs or Surplus Lubbock share of John C. Williams Wellfield: 37.058% Lubbock (acre- -feet per year) 4,338 4,318 4,310 4,342 4,484 4,570 Capacity of CRMWA Pipeline: 43.6 MGD Slaton fahoka Citys Supply: 'DG ell Plainview share of Lake Meredith: 3.691% Municipal wells (Daily Capacity of 49.5 MGD) Plainview share of John C. Williams Wellfield: 3.691% Lake Alan Henry-8,000 acre-feet per year (Maximum Daily Capacity of 49.5 MGD) Capacity of CRMWAI Pipeline: 4.52 MGD Other Cities Served by Lubbock: Shallowater, Buffalo Springs, Ransom Canyon, Citys Supply: oDonr Wolfforth 15r municipal wells (Daily Capacity of 8.5 MGD) Lubbock Historical Usage 16 16 679 Plainview Historical Usage 242 259 2,250 2,250 14 24 342 14 267 222 4.90 781 531 se 2,000 11se 2,000 12 339 5,.16 648 402 12 as 183 643 957 9s 212202 4 44 218 13 48 71 384 434 1,750 27 102 1183 1,750 4.87 3.55 an 518 1.37 1,130 10 City Supply 594 10 94 5 1,500 1,500 - 4.60 sa5.68/480 5.01 City Supply 603 42 682 E 1,250 62 1,250 ar 7.01 5. Bo, so1 3 42 2 37 a 7.777.79 5.79 302 86 5.70 I 1,000 72 214 se 133 1,000 638 716 CRMWA Wélls 474 750 a 77 827 797 16 750 543 92 457 399 500 sar 500 CRMW NA Wells 250 RMW 29 307 250 2 CRMWAL ake 07 Z 52 # : : I I I 8 : I # 8 a € A a # a a a a # - # 8 E I I I I a a 8 8 € € a & à € f 0 € : € 8 E # Member City Demands = Summary Annual Demand = In line with TWDB regional water planning Peak-Day Demand - Varies by City Member City Input: Some driven by Annual Demands, Others by Peak-Day 75% Residential / 25% Commercial/Industrial 90-95% Industrial / 5-10% Residential Annual Demand: Used for TWDB planning. Peak-Day Demand: Concern for some CRMWA Member Cities, as well as Annual Demand. Member City Proposed Annual Demand Scenarios Total Member City Demands 200,000 180,000 160,000 5 140,000 120,000 TWDB RWP Demands Accelerated Growth 100,000 Conservative Growth 80,000 60,000 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 Water Supply Plan Development Member City Groundwater Supplies Task 3.3 Establish Current Water Supplies Scope Item: Use current Groundwater Management Area (GMS) 1 Modeled Available Groundwater (MAG) groundwater modeling simulation as basis for predicting future water levels and saturated thickness in vicinity of each member city's well field, if they own additional groundwater wells. Aquifer High Plains System. ha E - Riat Rtal Bianca Blanca Outorop Suborop 2 DockumA DockumA Aguifer Aquiter Oucrop Subcrop Eoardi Plains) Aquile Tinly (Hgh Edwards- Ouacrop Tiny (Plateau) Edwards Msrp Tinty (Plateau) - Opilalaheitr Pecos Valley Aquiler Extent of TWDB Plains Acive Boundary High Aquifer System State County Boundary Boundary Groundwater Availability Model (GAM) Task 3.3 Establish Current Water Supplies Establish Member City Groundwater Supplies Amarillo, Lubbock, Plainview - Have completed groundwater modeling scenarios Groundwater modeling using GAM to establish groundwater supplies for remaining cities that have supplemental groundwater supply Simulated groundwater levels and saturated thickness maps for select member cities were produced at decadal intervals le Lake Meredith Wellfield r c orger Borger Conchas Lake Ute Reservoir Am arillo MyrtA Brownfield Lake Meredith Salinity Control Project Lamesa a a Plainview Levelland O'Donnell Levelland. Lubbock "slaton Pampa Brownfield O'Dor Tahoka nell P % Tahoka HR Simulated Groundwater Levels: Borger Borger Groundwater Levels 3,500 Simulated 3,400 Observed Base of Aquifer S N 3,300 * 3,200 - of 3,100 - a 3,000 8 T8 - 0 2,900 o 2,800 - 5 Simulated Member Averaged base of 2,700 City well levels Ogallala Aquifer 2,600 9 s 9 p po pe p po Simulated Groundwater Levels: Brownfield Brownfield Groundwater Levels 3,500 Simulated 3,400 Observed Base of Aquifer S 3,300 N * 3,200 of 3,100 - a 3,000 Simulated Member : City well levels Averaged base of 2,900 Ogallala Aquifer o 2,800 - n 2,700 2,600 99 9e 89 p po pe pe p Simulated Groundwater Levels: Lamesa Lamesa Groundwater Levels 3,500 Simulated 3,400 Observed Base of Aquifer S N 3,300 Simulated Member $ 3,200 well of City levels 3,100 - a 3,000 - : 2,900 - a 099 C o 2,800 a Averaged base of 2,700 Ogallala Aquifer 2,600 9 9e 9 p po pe pe po Simulated Groundwater Levels: Levelland Levelland Groundwater Levels 3,500 3,400 00000000 S N 3,300 $ 3,200 - Simulated Member of 3,100 - well levels a City Averaged base of 3,000 - Ogallala Aquifer - o 2,900 o 2,800 + a Simulated 2,700 Observed Base of Aquifer 2,600 9 9e 9 p po pe pe po Simulated Groundwater Levels: O'Donnell O'Donnell Groundwater Levels 3,500 Simulated 3,400 Observed Simulated Member Base of Aquifer S N 3,300 well levels * City 3,200 of 3,100 - a 3,000 : o 2,900 - o 2,800 - a Averaged base of 2,700 Ogallala Aquifer 2,600 9 9e 9 p po pe pe po Simulated Groundwater Levels: Pampa Pampa Groundwater Levels 3,500 Simulated 3,400 Observed Base of Aquifer S N 3,300 * Simulated Member 3,200 of City well levels 3,100 - a Averaged base of 3,000 - Ogallala Aquifer : 2,900 o 2,800 - a 2,700 2,600 9 9e 9 p po pe pe po Simulated Groundwater Levels: Tahoka Tahoka Groundwater Levels 3,500 Simulated 3,400 Simulated Member Observed Base of Aquifer S 3,300 - well levels N City $ 3,200 of 3,100 - a : 3,000 - - - K - - : 2,900 o 2,800 - base of a Averaged Ogallala Aquifer 2,700 2,600 9 9e 9 p po pe pe po Simulated Saturated Thickness: Borger 2030 2080 o Ciywels Thickiness- SR Ogallala Aquifer Saturabed 215 20300 5A Insarva Con o Ciyv Wells saturated 180 ft of 3 105 -65 3 805 9) 65 o o 25 35 from 40 thickness loss 110 53 53 Sti Stin a 2080 130 2030 to 40 3 - 3 City wells City wells 2030: 125 to 170 ftof 35 23 saturated thickness in 138 Ogallala Gecrecy EGy 9 36 6 Borger o Borger 2080: 50 to 105 ft of saturated thickness in Ogallala 0 35 5 675 & 1 00 3, 5 20300 OGALLALA AQUIFERS SATURATED THICKNESS/FEET)- BORGER 20800 OGALLALA AQUIFER SATURATED THICI CKNESS (FEET)- BORGER HR Figure2 ER 0 Figure 7 AN RMRU ka SAE ORIN SOR VALE AR o PRE DKE 1sa43 DATE 132 Simulated Saturated Thickness: Brownfield 2030 2080 CRy Wels 2080OgalaisA Thickness- Sn Aquiter Interval Saturated Contours mCSA Stl Aquifer Interval Saturated Contou Cityl Wells of saturated 64 6 -5ft loss 3 thickness from wells 5 37 E City o 0 2030 to 2080 Brownfield Brownfield 2030: 10 to 25 ftof saturated thickness in Ogallala 2080: 5 to 15 ft of saturated thickness in City wells Ogallala - o 3 8 S à 6 - - 15 2030 OGALLALAA AQUIFE ER SAT TURATED THICKNES SS(FEET)- BROWNFIE IELD 2080 OGALLALAA AQUIF ER SATURAT TED THICH KNESS (FEET)- BROWNFIELD t ER mFigure ER 02 Figure7 MER Jmsa EAISE CRINA SCR RVALE NPM APIAPRX DATE ISGESS PAVA IMBC Nur WP 00 DKTE 1GEas Simulated Saturated Thickness: Lamesa 2030 2080 e Caywels 20s0Ogatal Aguifer - 9 Thickn - quifer o 5to 25 ft of saturated Lmtcne thickness loss between 20 Cncod Gancoc 2030 and 2080 in limits o City Arvano 2030: 15 to 70 ft of saturated thickness in City wells wells Ogallala lamesa City 2080: 10 to 45 ft of saturated thickness in onvbanes Ogallala Loss of -40 ft of saturated thickness in wells north of City 50 to 60 ft remaining in wells north of 110 City HR 2030 OGALI LALA AQUIFERS SATURATED a THICKNES SS FEET LAMES Figure2 SA ER 2080 - OGALI LALA AQUIF ER SATURATEDT THIC CKNE SS FEET) -LAMES SA DATE RMA MC KI UA JMPMNS poc 0 APRE DAET Eisas Figure7 Simulated Saturated Thickness: Levelland 2030 2080 City Wells Ogalala Aquiler Satrated S Satural ted ECe n Interval Contours EOOASA ness. 5n eS Contours e Cty Nelis 10 15 of saturated & to ft thickness loss between City wells 2030 and 2080 in City limits Levelland Levelland 0 15 to Lovella 30 Lavellar 2030: ftof saturated thickness in Ogallala 2080: 5 to 15 ft of saturated City wells 5 thickness in Ogallala 39 22 2030 OGALLALA AQUIFI ER SATURATEDT THICKNES SS (FEET)- LEVELLAND 2080 OGALLALAA AQUIFI ER SATURATEDT THICKNESS (FEET) LEVELLAND 5R igure E2 e 2 m Figure7 ME CAVAA DATE 1oa0s MVER MAATEEE CRMMAL MSCR AALENPIN POCECRUR APRE DAE 1sae Simulated Saturated Thickness: O'Donnell 2030 2080 Cywels Ogalala 5R Agifer nterval Satura Contour ed E Ogal saturated S of ERBOR -SAI Intervs Centn City Wells 5ft 4 5 4 40 thickness loss between 93. 5 87 2030 and 2080 in City City wells limits City wells % 20 ODonnell O'Donnell 2030: 40 to 60 ft of ODG ne saturated thickness in 6 5 S0 0 Ogallala 3 sa 8 2080: 35 to 55 ft of saturated thickness in 15 225 120 Ogallala 65 79 9 a o 2030 OGALLALAA AQUIFER SATURATED THICK KNE SS (FEET) ODONNELL 2080 OGALLALA AQUIFERS SATURATED THIC INE SS FEET) O'DONNEL HR 1 igure 5R 0 Figure -AA A JMCF VALP UFN DK Ias Simulated Saturated Thickness: Pampa 2030 2080 CryWels 5n Aquter Interv al Satrated Contours / 45 Sa turated EGT 175 mCS ANES val ntou urs e City Wells 155 saturated 125 25 35 ft of B70 120 150 225 loss S between 79 thickness 6 - 39 160 150 2030 and 2080 in 165 3 City 210 * 185 limits 160 pover 25 15 A99 Pampa Pampa 2030: 16 - tO 230 ft of City wells 6 saturated thickness in 3 > Ogallala (ngmil 2080: 135 to 205 ft of 890 6 22 530 saturated thickness in 93 6 36 5 9 Ogallala wells 6 10 53 City 120 195 E 6 o 100, 80 de 2030 OGALLALAA AQUIFERS SATURATED THICKNESS (FEET)- PAMPA 2080 OGALLALAI AQUIFE ER: SAT TURAT TED THICK KNE SS (FEET)- PAMPA HR 1 m Figure2 HR L m Figure VRX DAT ORIN LDCR. DVALIT APRX DATE 1acEs Simulated Saturated Thickness: Tahoka 2030 2080 cay Wels D 98 ERE Opatau 5A Aguifer er al Satura Contou aed saturated e of SA Interval Ciy Wells 5ft Eo 5 thickness loss between 2030 and 2080 in City limits Tahoka Tahoka 39 2030: 10 to 35 ft of saturated thickness in wells Ogallala City City wells 2080: 5 to 30 ft of saturated thickness in Ogallala 65 60 3 5R 2030 OGALLALA AQUIFE ER SAT TURATEDT THICI CKNESS (FEET) TAHOKA OGALLALAA SATURATED1 THIC KNE SS a mi Figure2 HR 2080 AQUIFERS (FEET) TAHOKA MBC NE A SAPRK DATE VaaE2: a Figure BAPIK DKEIRSS Water Supply Plan Development CRMWA Groundwater Supplies Task 3.3 Establish Current Water Supplies Establish CRMWA Groundwater Supplies Legend Existing Wells Connector Lee Wilson & Associates - Completing Roberts Transmission Pipeline County Wal A groundwater modeling simulations to am iel fProposed estimate groundwater volume in Roberts Well County Field Roboris storage in Roberts County Well Field Wamphon Existing ns 54" CRMWA Pipelin bbingy Roberts County Well Field River Alluvium Sampling Plan 03 Task 1. River Alluvium Sampling Plan 12,000 Revuelto Creek (SCP) Hwy 385 Identifying sampling locations 10,000 Hwy 287 and frequency based on: (USGS Gage near Amarillo) Field testing, funding 8,000 available Lake Meredith Field staff access 6,000 Canadian River 4,000 streamflow - Estimated that large 2,000 percentage of chlorides removed LMSCP would be D 20 40 60 by 80 100 120 140 160 180 stored in river alluvium River Miles From Ute Reservoir 2021 -2019 2018 2017 -2016 2015 of Amarillo 2014 2013 2012 2011 2009 2008 upstream gage. 2006 2004 2003 2002 CRMWA chloride concentration data by distance from Ute Reservoir for each monitored year from Lake Meredith Salinity Control Evaluation - Phase 1 Task 1. River Alluvium Sampling Plan Current existing surface water quality sampling stations identified below Will work with CRMWA to identify additional sampling locations with known access points Dumas 0102A 01038 Station 10056 ID: Station 10054 ID: Station 16344 ID: 8 8 3524 Station 10018 ID: a 407 Bushland Task 1. River Alluvium Sampling Plan Identifying constituents to be included in sampling plan Water and soil sampling Alluvium constituents and testing methods Developing Field Data Sheets Following QAPP outline, sampling standards will be TCEQ compliant Initial constituents identified: Canadian River Flow Specific Conductivity TDS Sulfates Chlorides Project Schedule 2024 2025 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr LMSCP Ph II Task Project Management 1 Sampling Plan and Data Review 2 Update ofLk Meredith Firm Yield 3 Water Supply Plan 3.1 Meet with Member Cities 3.2 LWA: GW modeling of CRMWA well field 3.3 Use of GAM to assess Member City GW supplies 4 Comm and Docu Desal Feasiblity 1 Project Management 2 Kickoff Meeting, Data Collection and Review 3 Yield Estimate for Desalination Facility Sizing 4 & 5 Desal Treatment Process Eval & Brine Disposal Eval 6 Develop Economic/Benefit Analysis 7 Feasibility Tech Memo 8 Presentation at Board Meeting Next Steps Demands: Review revised peak-day demands with Member Cities Supplies: Finalize CRMWAgroundwater volume in storage Identify and Evaluate Supply Alternatives: Planning-level (conceptual) evaluations Aquifer Storage and Recovery (ASR) - Storage of CRMWA supplies in the Ogallala and Dockum Aquifers Construction of terminal storage reservoir(s) to increase supply and reliability Construction of additional CRMWA-developed wells in the Ogallala Aquifer for capacity maintenance at existing well field or other locations in service area Construction of additional CRMWA-developed wells in the Dockum Aquifer Construction of a reverse osmosis treatment facility to increase the available supplies from Lake Meredith Construction of CRMWA II pipeline and well field expansion to add transmission capacity Questions City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 7 SUBJECT: PRESENTATION OF THE CITY'S RACIAL PROFILING REPORT SUBMITTED BY: City Staff SUMMARY STATEMENT Presentation of the annual racial profiling report from the Police Department. COUNCIL ACTION No City Council action required. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 8 BUDGET AMENDMENT II: SUBJECT: PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Ordinance, Second Reading AUTHORITY: SUMMARY STATEMENT City Council to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to cover contracted medical expenses at Medical Arts Medical Hospital for persons arrested by City of Lamesa Police Department. (City Manager & Finance) COUNCIL ACTION DISCUSSION Motion by Council Member to consider amending Ordinance 0-11-24 on second reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. ORDINANCE NO. AN ORDINANCE OF THE CITY OF LAMESA, TEXAS, AMENDING ORDINANCE NO. 0-11-24 TO APPROPRIATE FUNDS IN THE CITY OF LAMESA BUDGET FOR FISCAL YEAR 2024-2025. On the 21st day January 2025, there came on and was held at the City Hall of the City of Lamesa, Texas, an open meeting of the City Council of the City of Lamesa, Texas, held pursuant to the provisions of the Texas Open Meetings Act (Government Code, Chapter 551). There being a quorum present and acting throughout the meeting, the following ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, to-wit: WHEREAS, the City Council desires to amend Ordinance No. 0-11-24 to make certain revisions to the 2024-2025 Budget of the City of Lamesa to authorize and appropriate funds as listed below; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: SECTION 1. That the City of Lamesa 2024-2025 Budget contained in Ordinance No. 0-11-24 be, and same is hereby, amended to change the amount appropriated by the following: Expenditures General Fund (01) $192,150.81 SECTION 2. Effective date: That this Ordinance shall become effective as of this February 27, 2025. SECTION 3. The City Secretary is hereby authorized and directed to cause publication of this Ordinance as provided by law. Upon being put to a vote, the foregoing ordinance was Passed, on First Reading on January 21, 2025, by a majority vote; and on February 18, 2025, there was held at the regular meeting place, the City Hall, an open meeting of the City Council of the City of Lamesa, Texas held pursuant to the provisions of the Texas Open Meetings Act (Government. Code, Chapter 551); there being a quorum present and acting throughout the meeting, the foregoing ordinance was formally submitted by motion and duly seconded for the consideration and action of the meeting, and upon being put to a vote, the foregoing ordinance was Passed on Second Reading by a majority vote and ordered to be spread upon the minutes of the City Council of the City of Lamesa, Texas and recorded in the ordinance book thereafter. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor CITY OF LAMESA BUDGET AMENDMENT -3 FOR FY 2024/2025 General Fund (1) This budget amendment is to cover contracted medical expenses at Medical Arts Hospital for persons arrested by City of Lamesa Police Department. Increase Expenses - (01-5063606) $1 192,150.81 LAMESATEXAS TRADE COAIDSICHO:SING CITY OF LAMESA 601 SOUTH 1ST STREET LAMESA, TEXAS 79331 TEL. 806-872-2124 FAX 806-872-4338 Date: January 17th, 2025 To: Betty Conde Thru: Finance Department From: Wayne Chapman, Finance Director Subject: Budget Amendment This budget amendment is to cover contracted medical expenses at Medical Arts Hospital for persons arrested by City ofLamesa Police Department. Support of Persons (Jail) 01-5063606 $192,150.81 Sincerely, opana Clepman Wayne Chapman Director of Finance City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 9 BUDGET AMENDMENT IV: SUBJECT: PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Ordinance, First Reading AUTHORITY: SUMMARY STATEMENT City Council to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (This Budget Amendment is to cover expenditures for remodeling a building for animal control in the City of Lamesa Animal Control Division. ((City Manager & Finance)) COUNCIL ACTION DISCUSSION Motion by Council Member to consider amending Ordinance 0-11-24 on first reading with respect to the budget for the fiscal year beginning October 1, 2024 and ending September 30, 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. ORDINANCE NO. AN ORDINANCE OF THE CITY OF LAMESA, TEXAS, AMENDING ORDINANCE NO. 01-11-24 TO APPROPRIATE FUNDS IN THE CITY OF LAMESA BUDGET FOR THE FISCAL YEAR 2024-2025. On the 18 day of February 2025, there came on and was held at the City Hall of the City of Lamesa, Texas, an open meeting of the City Council of the City of Lamesa, Texas, held pursuant to the provisions of the Open Meetings Act (Government Code, Chapter 551). There being a quorum present by motion and duly seconded for consideration and action of the meeting, to-wit: WHEREAS, the City Council desires to amend Ordinance No. 01-11-24 to make certain revisions to the 2024-2025 Budget of the City of Lamesa to authorize and appropriate funds as listed below; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: SECTION 1. That the City of Lamesa 2024-2025 Budget contained in Ordinance No. 0- 11-24 be, and same is hereby, amended to change the amount appropriated by the following: Expenditures General Fund (01) $37,622.27.00 SECTION 2. Effective date: That this ordinance shall become effective as of the March 27, 2025. SECTION 3. The city Secretary is hereby authorized and directed to cause publication of this ordinance as provided by law. Upon being puto a vote, the foregoing ordinance was passed, on First Reading on February 18, 2025, by a majority vote; and on March 18, 2025, there was held at the regular meeting place, the City Hall, an open meeting of the City Council of the City of Lamesa, Texas, held pursuant to the provision of the Texas Open Meeting Act (Government Chapter 551); there being a quorum present and acting throughout the meeting, the foregoing ordinance was formally submitted by morion and duly seconded for consideration and action of the meeting, and upon being put to a vote, the foregoing ordinance was Passes on second reading by a majority vote and ordered to be spread upon the minutes of the City Council of the City fo Lamesa, Texas, and recorded in the ordinance book thereafter. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor CITY OF LAMESA BUDGET AMENDMENT-4 FOR THE FY 2024/2025 GENERAL FUND (01) This budget amendment is to cover expenditures for remodeling a building for animal control in the City of Lamesa Animal Control Division. Increases Expense - (01-5066931) $37,622.27.00 City Council agreed to provide $50,000 per yeari for 2023, 2024, & 2025 for improvement to the Animal Control building. That equals $150,0001 to date. I have spent 136186.91 so1 far and have encumbered another $37622.27 for Plumber, electrical and AC Heating that will be completed this year. This equals $184,809.10 to date and puts me over budget by $37,622.27. I need about $36,000.00 to finish wall coveringi inside the buildinglhave scehduled now and likely need about $30,000 in Octoberto complete this project. This Project will cost! $233,309.18. This may adjudted down if some donation are recieved that have been verbally committed to. $136,186.91 $37,622.27 $59,500.00 $233,309.18 Project Paid To date Encumbered Needed $10,113.94 New Sewer by city staff $0.00 $0.00 $12,000.00 Sheet! Metal and windows $0.00 $0.00 $20,000.00 $0.00 $0.00 $4,280.00 Framing andremolding $0.00 $0.00 $525.00 $0.00 $0.00 $46,918.94 $0.00 $0.00 $0.00 Electrical Roughi in and trim out $11,355.48 $0.00 $11,355.48 $0.00 $0.00 Plumbingroughin, gas line and $12,916.79 $0.00 $21,992.10 $0.00 $0.00 trim out $0.00 $4,437.80 $0.00 $26,429.90 $12,916.79 $0.00 $1,000.00 Purchased: Swamp coolers $0.00 $0.00 $1,420.00 Installed Swamp Coolers $0.00 $0.00 $8,963.50 Foam Insulation pd2-12-25 $0.00 $0.00 $11,383.50 $0.00 $0.00 $51,454.57 Framing andremolding $0.00 $0.00 $51,454.57 $0.00 0 $0.00 Trim out AC andheaters $6,675.00 $0.00 $0.00 Misc. Materials to finish $0.00 $5,500.00 $0.00 Labor to finishi interior w alls $0.00 $36,000.00 $0.00 $6,675.00 $41,500.00 $0.00 Fencing $0.00 $9,000.00 $0.00 Signage $0.00 $1,500.00 $0.00 Treatment $0.00 $2,500.00 $0.00 Kennels $0.00 $5,000.00 $0.00 $6.675.00 $18.000.00 City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:10 A RESOLUTION OF THE CITY OF LAMESA, TEXAS, SUBJECT: APPROVING THE ACCEPTANCE OF REAL PROPERTY BY THE CITY OF LAMESA FOR THE BENEFIT OF THE LAMESA VETERAN'S ASSOCIATION.: PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Resolution AUTHORITY: SUMMARY STATEMENT City Council to consider approving the acceptance of real property by the City of Lamesa for the benefit of the Lamesa Veterans Association.(City Manager) COUNCIL ACTION DISCUSSION Motion by Council Member to consider approving the acceptance of real property by the City of Lamesa for the benefit of the Lamesa Veteran's Association. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" ABSTAIN" C. CITY MANAGER'S MEMORANDUM d. Recommend approval. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS, APPROVINGTHEACCEPTANCE OF REAL PROPERTY BY THE CITY OF LAMESA FOR THE BENEFIT OF THE LAMESA VETERAN'S ASSOCIATION On the 18th day of February, 2025, there came on and was held at the regular meeting place, the City Hall, an open meeting ofthe City Council ofthe City ofLamesa, Texas, held pursuant to the provisions of the Texas Open Meetings Act, and there being a quorum present and acting throughout the meeting, the following resolution was formally submitted by motion and duly seconded for the consideration and action oft the meeting, to-wit: WHEREAS, the South Plains Council of Scouting America has expressed its desire to donate certain real property located within the City of Lamesa to The Lamesa Veteran's Association; and WHEREAS, The Lamesa Veteran's Association has not yet attained 501(C) (3) charitable status and has requested the City of Lamesa accept title to such real property for the benefit of The Lamesa Veteran' S Association until such time as it can attain such charitable status; and WHEREAS, The City ofLamesa, Texas, desires to accept title from the South Plains Council of Scouting America ofthe following described real property until such time as The Lamesa Veteran's S Association attains 501 (C) (3) charitable status, to-wit: All of Lots Thirteen (13) and Fourteen (14), Block Seven (7), oft the Chicago Heights Amended Addition to the Town ofl Lamesa, Dawson County, Texas. NOW, THEREFORE, BE IT RESOLVED by the City Council oft the City of Lamesa, Texas, that the City of Lamesa, Texas, accept title to the following described property from the South Plains Council of Scouting America for the benefit of The Lamesa Veteran's Association of the following described real property until such time as The Lamesa Veteran's Association attains 501 (C) (3) charitable status, to-wit: All ofLots Thirteen (13) and Fourteen (14), Block Seven (7), of the Chicago Heights Amended Addition to the Town of Lamesa, Dawson County, Texas; SUBJECT TO all valid, existing mineral reservations, mineral conveyances and easements and rights-of-way, ifany, affecting said premises and of record in the office ofthe County Clerk of Dawson County, Texas. Upon being put to a vote, the resolution was Passed, Approved, and Adopted this 18th day of February 2025, by a majority vote and ordered to be spread upon the minutes ofthe City Council of the City Lamesa, Texas, and recorded in the resolution book thereafter. ATTEST: APPROVED: Betty Conde, City Secretary Josh Stevens, Mayor City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:11 AGREEMENT BETWEEN THE DAWSON COUNTY HOSPITAL SUBJECT: DISTRICT AND THE CITY OF LAMESA ILAMESA POLICE DEPARTMENT PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Agreement AUTHORITY: SUMMARY STATEMENT City council to consider approving an agreement between the City of Lamesa Police Department in cooperation with the Dawson County Hospital join together in this agreement. (City Manager) COUNCIL ACTION DISCUSSION Motion by Council Member to consider approving an agreement between the City of Lamesa Police Department in cooperation with the Dawson County Hospital join together in this agreement. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" e. CITY MANAGER'S MEMORANDUM f. Recommend approval. CONTRACT STATE OF TEXAS S COUNTY OF DAWSON S KNOW ALL MEN BY THESE PRESENTS: That this is evidence in writing of an agreement made and entered into this 18th day of February, 2025, by and between THE DAWSON COUNTY HOSPITAL DISTRICT, hereinafter called "Hospital", and THE CITY OFI LAMESA, TEXAS, hereinafter called' "City". WITNESSETH: WHEREAS, the City in cooperation with the Hospital join together in this agreement to provide for the public safety and health of the residents of Dawson County; and WHEREAS, it is in the best interest of the public to avoid duplication of facilities, personnel, and equipment and generally improve emergency and health preservation efforts in the community; and WHEREAS, it is in the best interest of the public health and welfare of the people of the respective jurisdictions to have such services available in the community; and WHEREAS, it is the intent of the parties hereto to comply with the provisions of the Interlocal Cooperation Act, further defined as Chapter 791of the Government Code of the State of Texas which provides that the Hospital and the County may contract with other local governments to provide governmental functions and services including emergency medical treatment and public safety. NOWT THEREFORE, the Hospital and the City, acting herein through their respective governing bodies, agree as follow: 1. Prisoner- The term prisoner shall mean any and all persons that upon presentment to the Hospital are en route to the Dawson County Jail and are in the custody, control or under guard or escort of the Lamesa Police Department (herein "LPD"). 2. Supervision of Prisoners - The parties understand that presenting prisoners to the Hospital for screening may involve certain peril or danger to hospital staff, patients, and visitors of the hospital. Thus, the City, acting throughi thel LPD, agrees and takes full responsibility to oversee, guard and/or supervise prisoners or persons in custody that are presented to the hospital for medical care to ensure that no harm or damage is done to the property of the hospital or its employees, staff, patients, or visitors to the hospital. Additionally, the City agrees that prisoners presented to the hospital will not be released from official custody and kept under guard if that prisoner may pose a threat or harm to the hospital, its property or its staff, patients, or visitors or until a proper judicial decree is entered that formally releases the prisoner from the custody of the LPD. 3. Confidentiality ofl Information - The parties hereto agree that all medical records, financial records, or other such information shall be treated as confidential and not subject to public disclosure or release pursuant to all State and Federal laws and regulations regarding the privacy and confidentiality rights of medical patients. 4. Hospital shall provide medical screening services to any prisoner or person presenting to the Emergency Department prior to their initial transport to the Dawson County Jail. City shall incur charges of $950.00 per encounter for screening services provided, payable within thirty (30) days of receipt of an itemized bill. Should medical staff perform any additional services outside the scope of the original screening, the prisoner or person shall incur charges at the fair market rate defined in the chargemaster maintained by Hospital. City agrees to seek repayment of medical bills from the prisoner or person through restitution. This agreement does not preclude Hospital from seeking and receiving contribution or payment from a prisoner or person or from any other source of payment, such as a commercial insurance company or another hospital district or county, or from exercising a right of subrogation in accordance with Texas law. 5. The term of this agreement shall be for three years commencing February 19, 2025, and terminating at midnight on February 19, 2028. 6. Notwithstanding any other provision herein regarding the term of this agreement, either party hereto shall have the right to terminate this agreement upon thirty (30) days written notice to the other party. In the event of such termination, neither party hereto shall have any further obligation hereunder. 7. It is specifically understood that if either the Hospital or City for any cause fails to provide said services as provided for in this agreement and is unable to resume performance for a period of sixty (60) consecutive days, the other party hereto, at its option and after sending written notice to the other party, may terminate this agreement and, shall have no further liability for payment of the charges or provisions of services agreed to herein. 8. It is specifically understood that in the event that any section, subsection, sentence, clause or phrase of this agreement is, for any reason, held to be invalid, such holding shall not affect the validity of the remaining portions of this agreement. 9. The provisions of this agreement are to be cumulative and all other contracts, agreements, or parts of contracts or agreements, whether oral, governing or regulating the same subject matter as that covered herein are hereby expressly repealed. 10. This agreement contains the entire agreement of the parties. There are no other agreements, oral or written, and the terms of this agreement can be amended only by written signed and ratified by both parties or as otherwise provided herein. Executed and effective as of February 18, 2025. ATTEST: CITY OF LAMESA, TEXAS BY: Betty Conde, City Secretary Josh Stevens, Mayor Dawson County Hospital District By: Freddy Olivarez, Hospital Administrator City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 12 A RESOLUTION OF THE CITY OF LAMESA, TEXAS FINDING SUBJECT: THAT THE STATEMENT OF INTENT OF ATMOS ENERGY CORP., WEST TEXAS DIVISION TO CHANGE RATES FILING WITHIN THE CITY SHOULD BE DENIED:FINDING THAT THE CITY'S RREASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY: FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO TE PUBLIC AS REQUIRED BY LAW: REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL PROCEEDING: Approval SUBMITTED BY: City Staff EXHIBITS: Resolution AUTHORITY: SUMMARY STATEMENT City Council to consider a resolution of the City of Lamesa 1 Texas finding that the statement of intent of Atmos Energy Corp., West Texas Division to change rates filing within the city should be denied.(City Manager) COUNCIL ACTION DISCUSSION Motion by Council Member to consider a resolution of the City of Lamesa 1 Texas finding that the statement of intent of Atmos Energy Corp., West Texas Division to change rates filing within the city should be denied. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" NAY" ABSTAIN" g. CITY MANAGER'S MEMORANDUM h. Recommend approval. RESOLUTION NO. R-3-25 A RESOLUTION AUTHORIZING CONTINUED PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR; AND AUTHORIZING THE PAYMENT OF ELEVEN CENTS PER CAPITA TO THE STEERING COMMITTEE TO FUND REGULATORY AND LEGAL PROCEEDINGS AND ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY COMPANY,LLC. WHEREAS, the City ofLamesa is a regulatory authority under the Public Utility Regulatory Act (PURA) and has exclusive original jurisdiction over the rates and services ofOncor Electric Delivery Company, LLC (Oncor) within the municipal boundaries of the city; and WHEREAS, the Steering Committee of Cities Served By Oncor (Steering Committee) has historically intervened in Oncor rate proceedings and electric utility related rulemakings to protect the interests of municipalities and electric customers residing within municipal boundaries; and WHEREAS, the Steering Committee is participating in Public Utility Commission dockets and projects, as well as court proceedings, and legislative activity, affecting transmission and distribution utility rates; and WHEREAS, the City is a member of the Steering Committee; and WHEREAS, the Steering Committee functions under the direction of an Executive Committee which sets an annual budget and directs interventions before state and federal agencies, courts and legislatures, subject to the right of any member to request and cause its party status to be withdrawn from such activities; and WHEREAS, the Steering Committee at its December 2024 meeting set a budget for 2025 that compels an assessment of eleven cents ($0.11) per capita; and WHEREAS, in order for the Steering Committee to continue its participation in these activities which affects the provision of electric utility service and the rates to be charged, it must assess its members for such costs. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: I. That the City is authorized to continue its membership with the Steering Committee of Cities Served by Oncor to protect the interests of the City of] Lamesa and protect the interests of the customers of Oncor Electric Delivery Company, LLC: residing and conducting business within the City limits. 7990690 II. The City is further authorized to pay its assessment to the Steering Committee of eleven cents ($0.11) per capita based on the population figures for the City shown in the latest TML Directory of City Officials. III. A copy of this Resolution and the assessment payment check made payable to "Steering Committee of Cities Served by Oncor, clo City of Arlington' ) shall be sent to Brandi Stigler, Steering Committee of Cities Served by Oncor, Mail Stop 63-0300, PO Box 90231, Arlington, Texas 76004. PRESENTED AND PASSED on this the 21st day of January, 2025, by a vote of7 ayes and 0 nays at a regular meeting of the City Council of the City ofLamesa, Texas. Signature Mayor ATTEST: Signature City Secretary APPROVED AS TO FORM: Signature City Attorney 7990690 2 MODEL STAFF REPORT REGARDING ATMOS ENERGY CORP.'S STATEMENT OF INTENT FLING **ACTION MUST BE TAKEN TO DENY THE RATE CHANGE BEFOR MARCH 21, 2025** *** On October 25, 2024, Atmos Energy Corp., West Texas Division (Atmos or Company) filed a Statement of Intent to Increase Rates with cities retaining original jurisdiction in the West Texas Division. In the filing, the Company is seeking to increase system-wide base rates by approximately $66.1 million. If approved, this will increase the annual revenues received from the incorporated areas by approximately $26.9 million (an increase of 20.76% including gas costs). According to Atmos West Texas, the impact of this approval on an average residential customer would be an increase of about $16.66 per month (an increase of 10%). In late October, the Cities Served by Atmos West Texas (Cities) engaged the services of consultants to review the Company's filing. The consultants identified numerous unreasonable expenses and proposed significant reductions to the Company's request. Accordingly, Cities' attorney recommends that all Cities members adopt the Resolution denying the rate change. Once the Resolution is adopted, Atmos will have 30 days to appeal the decision to the Railroad Commission where the appeal will be consolidated with Atmos's filing for the environs and those cities that have relinquished their jurisdiction (i.e. Gas Utility Docket 18879) currently pending at the Commission. Under the law, a city may suspend the rate change for 90 days after the date the rate change would otherwise be effective. Atmos agreed to an effective date of December 21, 2024. Thus, if your city took action on the suspension resolution before December 21, 2024, the time has now come for your city to adopt the resolution denying the rate change. Your city must take action no later than March 21, 2025. Purpose of the Resolution: The purpose of the Resolution is to deny the rate application and consolidation proposed by Atmos. Explanation of "Be It Resolved" Paragraphs: 1. This paragraph finds that the Company's application is unreasonable and should be denied. 2. This section states that the Company's current rates shall not be changed. 3. The Company will reimburse Cities for their reasonable rate case expenses. Legal counsel and consultants, approved by the Cities, will submit monthly invoices that will be forwarded to Atmos for reimbursement. 4. This section merely recites that the Resolution was passed at a meeting that was open to the public and that the consideration oft the Resolution was properly noticed. 5. This section provides Atmos and counsel for the cities will be notified of the City's action by sending a copy of the approved and signed resolution to counsel. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:13 SUBJECT: 2025 SPECIAL ELECTION PROCEEDING: Resolution SUBMITTED BY: City Secretary EXHIBITS: AUTHORITY: State Law; Texas Election Code; Section 2.051, 2.052 SUMMARY STATEMENT City Council to Consider passing a Resolution ordering and establishing procedures for the City of Lamesa Special Election to be held on May 3, 2025. COUNCIL ACTION DISCUSSION: Motion by Council Member to pass a Resolution ordering and establishing procedures for the City of Lamesa Special Election to be held on May 3, 2025. Motion seconded by Council Member and upon being put to a vote the motion VOTING: "AYE" "NAY" "ABSTAIN" CITY MANAGER'S MEMORANDUM Recommend approval. RESOLUTION NO. A RESOLUTION AND ORDER ESTABLISHING PROCEDURES FOR THE 2025 CITY OF LAMESA SPECIAL ELECTION. On this the 18th day of February, 2025, there came on and was held at the regular meeting place, the City Hall, an open meeting of the City Council of the City of Lamesa, Texas held pursuant to the provisions of the Texas Open Meetings Act, and there being a quorum present and acting throughout the meeting, the following resolution was formally submitted by motion and duly seconded for the consideration and action of the meeting, to wit: WHEREAS, the Constitution of the State of Texas and the Charter of the City of Lamesa, Texas, provide that any vacancy occurring on the governing body of a home rule city having a term of office exceeding two years shall be filled by majority vote of the qualified voters at a special election called for such purpose within 120 days after such vacancy occurs; and WHEREAS, a special election should be held on May 3, 2025, to fill the unexpired term for the vacancy created by the resignation of the Lamesa City Council Member for District 1; and WHEREAS, the laws of the State of Texas, the Charter of the City of Lamesa, Texas and the terms of the Federal Court Order resolving Civil Action Number CA 5-91- 0153 further provide that the Election Code of the State of Texas is applicable to said election, and in order to comply with said Code, a resolution and order should be passed establishing the procedures to be followed in said election and designating the voting place for said election; and WHEREAS, it is in the public interest and welfare that this resolution be passed. NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS: That a special election be held on the 3rd day of May 2025, for the purpose of electing: One (1) "Council Member, District 1" to fill the unexpired term ending in 2027; and That all independent candidates at said election file their applications to become candidates with the City Secretary at City Hall, 601 South First Street, Lamesa, Texas, on or before five o'clock P.M. on the sixty second day before the election, that day being the 3rd day of March, 2025, and that all of said applications shall be on a form as prescribed by Section 141.031 of the Texas Election Code; and That the order in which the names oft the candidates are to be printed on the ballot shall be determined by a drawing by the City, Secretary as provided by Section 52.094 of the Texas Election Code; that drawing to be held at five-thirty o'clock P.M. on the 7th day of March 2025; and That said election shall be held at the following place in said City: Forrest Park Community Center 814 South Houston Avenue Lamesa, Texas; and That the polling place listed above shall be open from seven o'clock A.M. until seven o'clock P.M. on election day; and Early voting shall also be conducted at City Hall, 601 South First, Lamesa, Texas in the office of the City Secretary and said place of early voting shall remain open during the hours that the secretary's office is regularly open for business, which is not a Saturday, a Sunday or an official State Holiday. Early voting by personal appearance will be conducted as follows: Date Weekday Times April 22 thru April 25 (Tuesday thru Friday) 8a am - 5 pm April 28 and April 29 (Monday and Tuesday) 8 am- 5 pm The City of Lamesa will be using the ES&S AutoMARK voter assist terminal. This AutoMARK is an optical scan ballot marking system designed to provide privacy and accessibility to voters who are visually impaired, or have a disability or condition that would make it difficult or impossible to mark a ballot in the usual way. In addition, the technology provides language assistance to voters who are more comfortable speaking an alternative language or who have reading difficulties; and That early voting by personal appearance for said designated election shall be at City Hall, 601 South First, Lamesa, Texas, in the office of the City Secretary and said place of early voting shall remain open during the hours that the secretary's office is regularly open for business, which is not a Saturday, a Sunday, or an official State Holiday, beginning on the 11th day before and continuing through the 4th day preceding the date of said election; and The applications for ballot by mail shall be mailed to the Office of the City Secretary, 601 South First, Lamesa, Texas 79331. Applications for ballots by mail must be received no later than the close of business on the 22nd day of April, 2025; and That all early voting ballots cast in said election shall be counted by an Early Voting Ballot Board in accordance with the provisions of Section 87.001 of the Texas Election Code; and that said Early Voting Ballot Board shall be appointed by the City Council. The early voting ballots shall be counted separately from the ballots cast in that polling place and a separate set of records be prepared for them; and That said election shall be held in accordance with the Texas Election Code and only qualified voters being residents of said City and residing in City Council District 6 shall be eligible to vote in said election; and That the Mayor shall give notice of this election in accordance with the terms and provisions of Chapter 4 of the Texas Election Code; said notice shall be published in the Lamesa Press-Reporter, a newspaper of general circulation in the City of Lamesa, Texas, not earlier than the thirtieth (30th) day and not later than the tenth (10th) day before election day and posted in the City Hall at 601 South First Street and at a public place in City Council District 4 not later than the 10th day before election day; and that such notice shall be recorded and preserved in accordance with the provisions of Section 4.005 of the Texas Election Code; and That the Mayor shall issue all necessary orders and writs for said election and returns of said election shall be made to the City Council immediately after the closing of the polls; and That the canvassing of said election shall take place at the regularly scheduled meeting of the City Council on Tuesday, May 13, 2025, at five-thirty p.m.; and that the council shall certify the results of said canvass at that meeting. Upon being put to a vote, the resolution was Passed, Approved, and Adopted this 18th day of February 2025, by a majority vote and ordered to be spread upon the minutes of the City Council of the City of Lamesa, Texas, and recorded in the resolution book thereafter. ATTEST: APPROVED: Betty Conde Josh Stevens City Secretary Mayor City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:14 SUBJECT: CITY STAFF REPORTS SUBMITTED BY: City Staff EXHIBITS: Reports SUMMARY STATEMENT a. PARKS, STREETS, SANTATIONLANDELL REPORT: Director to report on the city's recent events. b. UTILITIES DIRECTOR REPORT: Utility Director to report on the city's recent events. COUNCIL ACTION No City Council action required. CITY MANAGER'S MEMORANDUM City Staff will provide reports at City Council meeting. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM 15 SUBJECT: FINANCIAL REPORT SUBMITTED BY: Finance Director EXHIBITS: Financial Reports SUMMARY STATEMENT Financial reports for January 2025 for City Council review and discussion. COUNCIL ACTION No City Council action required. CITY MANAGER'S MEMORANDUM Wayne Chapman, Finance Director, will present an overview of the City's Financial reports. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:16 SUBJECT: INVESTMENT REPORT SUBMITTED BY: Finance Director EXHIBITS: Quarterly Investment Reports SUMMARY STATEMENT Finance Director to report on the City's investments through the 1st quarter of FY 2024/2025. COUNCIL ACTION No action is required. CITY MANAGER'S MEMORANDUM Finance Director will provide report at City Council meeting. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 17 SUBJECT: CITY MANAGER REPORT SUBMITTED BY: City Manager SUMMARY STATEMENT COUNCIL ACTION No City Council action required. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:18 SUBJECT: MAYORS REPORT SUBMITTED BY: Mayor SUMMARY STATEMENT Mayor to report on current activities and to answer questions from City Council. COUNCIL ACTION No City Council action required. City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM: 19 SUBJECT: EXECUTIVE SESSION: PROCEEDING: Closed Session SUBMITTED BY: City Staff EXHIBITS: AUTHORITY: Texas Open Meetings Act Chapter 551, Government Code SUMMARY STATEMENT Consider convening into closed Executive Session with the City Council of the City of Lamesa, Texas for the following: Sec. 551.071, Texas Government Code Consultation with Attorney regarding contemplated litigation under the provisions of the Texas Open Meetings Act). Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person. COUNCIL ACTION DISCUSSION: Motion by Council Member to enter into executive session. Motion seconded by Council Member and upon being put to a vote the motion passed. VOTING: "AYE" "NAY" ABSTAIN" CERTIFIED AGENDA: EXECUTIVE SESSION OF THE CITY COUNCIL OF THE CITY OF LAMESA, TEXAS On this day, February 18, 2025, at a special called meeting of the City Council of the City of Lamesa, Texas the Council adjourned into a closed executive session; notice of said session having been given by a notice posted at the City Hall, 601 South First Street at least seventy-two hours in advance. A. ANNOUNCEMENT BY PRESIDING OFFICER: "The City Council will begin its executive session on February 18, 2025, at P.M." The subject matter of each executive session deliberation is as follows: Sec. 551.071, Texas Government Code Consultation with Attorney regarding contemplated litigation under the provisions of the Texas Open Meetings Act). Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person. RECORD OF ACTION TAKEN: B. ANNOUNCEMENT BY PRESIDING OFFICER: "The City Council has completed its executive session on February 18, 2025, at P.M." C. CERTIFICATION: I hereby certify that this agenda of an executive session of the City Council of the City of Lamesa, Texas is a true and correct record of the proceedings pursuant Texas Open Meetings Act (Chapter 551, Government Code). WITNESS my hand this 2025. Josh Stevens Mayor City Council Agenda City of Lamesa, Texas DATE OF MEETING: FEBRUARY 18, 2025 AGENDA ITEM:20 ADJOURNMENT: Announcement by the Mayor - The next regular meeting of the City Council of the City of Lamesa, Texas will be held at 5:30 p.m., on Tuesday, March 18, 2025, at City Hall, 601 South First Street.