[ BCRUA Board of Directors Meeting]
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WE'LL NOW CALL TO ORDER THE MEETING OF THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY.
TODAY IS FEBRUARY 26TH, 2025, AND THE TIME IS NOW 601. AND WHEN, BEFORE WE BEGIN OUR MEETING, WE'RE GOING TO TAKE A MOMENT OF SILENCE FOR OUR CITIZEN DIRECTOR, JASON ANDERSON. HIS SUNSET WAS SUNDAY AND WE APPRECIATE ALL THE TIME AND ENERGY AND EFFORT HE PUT INTO BCRA, AND THAT HE PUT INTO HIS COMMUNITY. SO I SHALL STAND FOR A MOMENT OF SILENCE AS WE RECOGNIZE HIS LIFE. THANK YOU. THANK YOU. YOU MAY BE SEATED. ALL RIGHT. IF YOU WOULD CALL.
ROLL. OH, I'M NOT GOING TO GO. THAT'S OKAY. PRESIDENT THOMPSON, PRESENT VICE PRESIDENT DUFFY HERE. SECRETARY FLORES HERE. DIRECTOR MONTGOMERY HERE. DIRECTOR KIRKLAND HERE. THANK YOU. WE'LL MOVE ON TO ITEM THREE. OUR CITIZEN COMMUNICATION. DO WE HAVE ANY TONIGHT? OKAY. THANK YOU. AND NOW WE'LL MOVE ON TO ITEM FOUR. APPROVAL OF THE MINUTES FOR A.
CONSIDER APPROVAL OF THE BCC BOARD MEETING MINUTES FROM JANUARY 22ND, 2025. THIS IS AN ACTION ITEM. MOTION TO APPROVE. SECOND. ALL RIGHT. WE HAVE A MOTION. AND A SECOND. ALL THOSE IN FAVOR SAY AYE. ANY OPPOSED? MOTION CARRIES. WE'LL MOVE ON TO ITEM FIVE. A CONSIDER A STATUS UPDATE FROM THE GENERAL MANAGER REGARDING THE 2025 SWIFT LOAN ABRIDGED APPLICATION TO. TT DB.
PRESIDENT. DIRECTORS. AARON ARCHER IS HERE FROM WALKER PARTNERS. JUST TO GIVE A BRIEF UPDATE ON ON THE SUBMISSION OF THE OF THE ABRIDGED APPLICATION. THANK YOU. GOOD EVENING. MY NAME IS AARON ARCHER. QUICK UPDATE ON THE ABRIDGED APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD.
WE WERE ABLE TO GET THAT OUT THE DOOR. TIMELY SUBMITTAL AT THE END OF JANUARY. THE BOARD WATER DEVELOPMENT BOARD DID FOLLOW UP WITH A FEW COMMON QUESTIONS, KIND OF LOOKING FOR CLARIFICATION ON THE SCOPE OF THE PROJECT THAT WE'RE ATTEMPTING TO FUND. PHASE TWO, A WATER TREATMENT PLANT EXPANSION. THE WATER DEVELOPMENT BOARD IS NOW IN THE PROCESS OF EVALUATING ALL OF THE ABRIDGED APPLICATIONS THAT WERE SUBMITTED AND GOING THROUGH THEIR RANKING AND PRIORITIZATION. WE ANTICIPATE HEARING BACK FROM THEM ON THAT PROCESS AROUND THE END OF MARCH, MAYBE THE BEGINNING OF APRIL, AT WHICH POINT THEY TYPICALLY GIVE US ABOUT 30 DAYS TO PREPARE THE FINAL APPLICATION, WHICH DOES REQUIRE SIGNIFICANT COORDINATION WITH ALL OF YOU AS WELL AS YOUR INDIVIDUAL CITY COUNCILS. SO IN BETWEEN TODAY AND THAT TIME, WE WILL BE WORKING WITH THE CITY OF ROUND ROCK AND CITY OF LEANDER TO DETERMINE IF WE'RE GOING TO CONTINUE FORWARD WITH SWIFT FUNDING. AND I'D BE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU. SO JUST JUST CURIOUS OR REMIND ME. SO WE PUT IT IN LINE TO SEE IF THEY EVEN ACCEPT IT AS A PROJECT. IS THAT IS THAT GO THROUGH AND THEIR RANKING AND PRIORITIZATION. THEY'RE REALLY LOOKING AT THE AMOUNT OF FUNDING THAT HAVE BEEN REQUESTED AND THE NUMBER OF CUSTOMERS BEING SERVED BY THESE PROJECTS. SO THEY HAVE A FAIRLY LENGTHY PRIORITIZATION PROCESS. THEY DON'T PUBLISH THAT. THAT'S NOT SOMETHING THAT WE'RE PRIVY TO OR GET TO KIND OF SEE INTO. BUT THEY'LL GO THROUGH THAT LOOK AT THE COST THAT EVERYONE IS SEEKING TO OBTAIN THROUGH SWIFT FUNDING, THE TYPES OF PROJECTS AND THE NUMBER OF CUSTOMERS IMPACTED BY THOSE PROJECTS, THE SCHEDULES FOR THOSE PROJECTS, AND THEN COME OUT WITH THEIR RANKING PROCESS AT THAT TIME. REALLY, THE RANKING IS EITHER YOU'RE INVITED TO SUBMIT AN APPLICATION OR YOU ARE NOT. I BELIEVE THIS IS OUR FOURTH TIME TO GO IN FOR SWIFT FUNDING, AND WE'VE ALWAYS MADE THE CUT. SO WE DON'T WE DON'T HAVE ANY IDEA HOW MUCH MONEY IS IN THE BUCKET TO DIVVY UP. WE DO NOT. ALRIGHT. THANK YOU. ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHT. THANK YOU. WE'LL MOVE INTO ITEM SIX A CONSIDER A PRESENTATION REGARDING THE FY 2023 2024 FINANCIAL AUDIT AND ACTION APPROVING OF THE SAME. WELCOME. HELLO. THANK YOU ALL FOR HAVING ME. MY NAME IS REBECCA DARLING. I AM WITH WEAVER. EXTERNAL AUDITOR FOR BCR, UA. SO I WILL BE PRESENTING JUST THE BASIC RESULTS OF THE AUDIT FOR THE YEAR ENDING 930 2024. SO WE HAVE JUST THE BASIC THE REQUIRED COMMUNICATION LETTER IS WHAT I'LL GO OVER.
CERTAINLY IF YOU ALL HAVE QUESTIONS ON THE AUDITED FINANCIALS THEMSELVES I'M HAPPY TO ANSWER THAT. BUT THE LETTER IS DATED JANUARY 10TH. THAT'S THE DATE THAT WE ISSUED THE
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AUDITED FINANCIAL STATEMENTS. LIKE I SAID, WE DID AUDIT THE FINANCIAL STATEMENTS FOR THE YEAR ENDING SEPTEMBER 30TH, 2024. IN TERMS OF OUR RESPONSIBILITY IN RELATION TO THE FINANCIAL STATEMENT AUDIT. OUR RESPONSIBILITY, OF COURSE, IS TO EXPRESS AN OPINION. IF THOSE FINANCIAL STATEMENTS ARE FAIRLY PRESENTED IN ACCORDANCE WITH WHAT WE CALL GAAP, WHICH IS A GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. OUR RESPONSIBILITY IS ALSO TO PLAN AND PERFORM THE AUDIT TO OBTAIN REASONABLE, BUT NOT ABSOLUTE ASSURANCE, WHICH IS WHAT THAT SECOND PARAGRAPH TALKS ABOUT. REALLY WHAT THAT MEANS IS WE CAN'T LOOK AT EVERY SINGLE TRANSACTION. BUT WE DO HAVE MATERIALITY THRESHOLD. RIGHT? SO WE LOOK AND LOOK AT THE BALANCE SHEET, IF YOU WILL, AND THE INCOME STATEMENT AND SAY WHAT WHAT WOULD BE MATERIAL TO A READER IF IT WAS MISSTATED. AND SO WE KIND OF GO ACCORDING TO THAT. AND WHILE WE DON'T EXPRESS AN OPINION ON CONTROLS, WE DO LOOK AT INTERNAL CONTROLS. AND SO WE ACTUALLY GO IN AND SAY, YOU KNOW, MAINLY FOR BCR, UA, IT'S, YOU KNOW, BECAUSE MOST OF THE REVENUE COMES FROM THE CITIES, THAT'S PRETTY EASY TO AUDIT. WE GET THOSE CONFIRMED. SO WE LOOK WE FOCUS A LOT ON THE CONTROLS AS FAR AS THE MONEY GOING OUT THE DOOR. WHO APPROVES. MAKE SURE THAT THE CAPITAL ASSETS GET PROPERLY, PROPERLY CAPITALIZED THOSE TYPES OF THINGS. SO APPROVALS AND SEGREGATION OF DUTIES. SO THE POINT OF THAT IS WHILE WE DON'T GIVE AN OPINION ON INTERNAL CONTROLS, IT IS PART OF OUR AUDIT. AND IT'S IMPORTANT TO FOR YOU ALL TO KNOW THAT. SO IF WE DID FIND SOMETHING WHERE THERE WASN'T PROPER SEGREGATION OF DUTIES OR MANAGEMENT REVIEW AND THINGS LIKE THAT, WE WOULD LET THE BOARD KNOW. SO WE DIDN'T FIND ANYTHING LIKE THAT. ALSO, IF THERE WERE ANY OTHER SIGNIFICANT MATTERS, WE WOULD COME TO YOU ALL. IF IT WAS SIGNIFICANT AND ENOUGH TO BRING IT TO YOU ALL BEFOREHAND, WE WOULD DO THAT. BUT NOTHING ELSE TO REPORT IN TERMS OF THAT.OKAY. JUST MOVING. SORRY. DO YOU ALL HAVE THE LETTER IN FRONT OF YOU? I THINK I JUST. THERE WE GO. THAT'S GOOD. SORRY. THIS IS SO AT THE TOP OF PAGE TWO. TALKING ABOUT. WELL, BOTTOM OF PAGE ONE, PLANNED SCOPE AND TIMING. JUST SO YOU KNOW, WE COME IN NOVEMBER WHERE WE ALLOW MANAGEMENT TO CLOSE THE BOOKS AND THEN WE ISSUE IN JANUARY. SO USUALLY THAT NOVEMBER DECEMBER TIME FRAME. AND ALSO ON THE END OF THE FIRST PAGE, IT DOES TALK ABOUT ETHICAL REQUIREMENTS IN TERMS OF INDEPENDENCE. WE DO WE ARE REQUIRED TO BE INDEPENDENT OF BCR. SO WE DO GO THROUGH THOSE INTERNAL CHECKS AND BALANCES EVERY YEAR. AT THE TOP OF PAGE TWO WE TALK ABOUT SIGNIFICANT RISKS IDENTIFIED. SO IT IS OUR DUE DILIGENCE TO LET THE BOARD KNOW THAT WE DO DO A RISK ASSESSMENT PROCESS EVERY YEAR AS PART OF OUR DUE DILIGENCE. AND A LOT OF THOSE SIGNIFICANT RISKS IDENTIFIED ARE OR SOME OF THEM ARE CALLED WHAT WE CALL WHAT WE SAY REBUTTABLE RISKS. SO GENERALLY THERE'S A REVENUE RECOGNITION RISK AND ALL AUDITS. THAT'S THAT FIRST PARAGRAPH UP THERE FOR BCR UA. IT'S NOT SIGNIFICANTLY COMPLICATED BECAUSE YOU DON'T HAVE THAT MANY REVENUE STREAMS. SO WE DO CONFIRM THE REVENUE WITH THE CITIES. WE ALSO JUST MAKE SURE THAT THERE'S PROPER CUT OFF BETWEEN WHAT SHOULD BE RECOGNIZED IN FISCAL YEAR 24 VERSUS 25 VERSUS 23, THAT TYPE OF THING. SO, YOU KNOW, OPERATING IN CAPITAL CONTRIBUTIONS. WE ALSO CONSIDER A SIGNIFICANT RISK JUST BEING THE CLASSIFICATION AND VALUATION OF FIXED ASSETS, RELATED CONSTRUCTION AND PROGRESS AND DEPRECIATION. SO WE DO LOOK A LOT AT THAT BECAUSE OBVIOUSLY SOMETIMES THE ACCOUNTING FOLKS DON'T NECESSARILY KNOW ON THE OPERATIONS SIDE WHEN SOMETHING'S BEEN PUT IN OPERATION AND THAT TYPE OF THING AND THOSE TYPES OF OPERATIONAL TRIGGERS HAVE FINANCIAL IMPLICATIONS AS WELL. SO LIKE WHEN A PHASE GETS PUT INTO PUT INTO OPERATION, IT STARTS GETTING SHOULD START GETTING DEPRECIATED, DEPRECIATED, BEING MOVED OUT OF CIP INTO FIXED ASSETS. SO THOSE TYPES OF THINGS WE LOOK AT CAREFULLY. AND JUST BECAUSE YOU HAVE SO MANY FIXED ASSETS, WE DO WE DID CONSIDER THAT A SIGNIFICANT RISK. AND THEN OF COURSE WE ALWAYS LOOK AT MANAGEMENT OVERRIDE OF CONTROLS.
SO WHAT THAT MEANS IS EVEN IF YOU HAVE REALLY GREAT OPERATIONAL POLICIES AND PROCEDURES, YOU ALWAYS HAVE THOSE KEY PEOPLE. AND ON THE FINANCIAL SIDE THAT CAN CHANGE THE NUMBERS, CAN BOOK JOURNAL ENTRIES AND THOSE TYPES OF THINGS. SO WE DO LOOK AT CLOSELY YEAR END JOURNAL ENTRIES, ANYTHING THAT'S NOT AN AUTOMATIC ENTRY THAT JUST GETS BOOKED AT YEAR END OR MONTH END, THAT SIGNIFICANTLY CHANGES THE NUMBERS. SO THOSE ARE JUST SOME AREAS THAT WE FOCUS ON. OF COURSE WE LOOK AT ALL THE MATERIAL AMOUNTS, BUT WE DIDN'T HAVE ANY MATERIAL MISSTATEMENTS IN ANY OF THOSE AREAS UNDER SIGNIFICANT ACCOUNTING POLICIES.
THE POLICIES THE SIGNIFICANT ACCOUNTING POLICIES ARE NOTED IN NOTE TWO TO THE FINANCIAL STATEMENTS. THAT'S THAT SECOND PARAGRAPH DOWN THERE. THERE WAS NO NEW OFFICIAL SELECTION OF ACCOUNTING POLICIES THIS YEAR, WHICH ALWAYS MAKES THE AUDIT A LITTLE EASIER. SO THERE WAS NOT
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ANYTHING SIGNIFICANTLY SIGNIFICANT THAT WE HAD TO CHANGE IN TERMS OF OR THAT WE HAD TO IMPLEMENT IN TERMS OF FINANCIAL ACCOUNTING STANDARDS UNDER SIGNIFICANT ACCOUNTING ESTIMATES AND RELATED DISCLOSURES. MOST FINANCIAL STATEMENTS HAVE SOME LEVEL OF ESTIMATES IN THEIR FINANCIAL STATEMENTS. SO OF COURSE WE LOOK AT THOSE WE AND BECAUSE THERE ARE MANAGEMENT JUDGMENT INVOLVED, WE LOOK AT MAKE SURE THE HISTORICAL WE LOOK AT HISTORICAL EVENTS PAST CURRENT AND JUST MAKE SURE THAT ANY ESTIMATES ARE IN LINE WITH WHAT WE WOULD EXPECT THEM TO BE. BCREA REALLY DOESN'T HAVE ANY SIGNIFICANT ESTIMATES. I WOULD SAY THE BIGGEST ONE YOU HAVE IS JUST BECAUSE OF YOUR FIXED ASSETS. THEY HAVE AN ESTIMATED USEFUL LIFE, AND THAT ESTIMATED USEFUL LIFE THEN DETERMINES HOW FAST THEY GET DEPRECIATED. SO WE LOOK AT THAT OF COURSE. BUT THOSE THERE ARE A LOT OF STANDARDS OUT THERE THAT SAY, HEY, BASED ON THIS TYPE OF ASSET, THIS IS HOW LONG YOU DEPRECIATE IT, THAT TYPE OF THING. SO NO OTHER SIGNIFICANT ESTIMATES THAT WE'VE NOTED IN THE FINANCIAL STATEMENTS.FINANCIAL STATEMENT DISCLOSURES NOTHING SIGNIFICANT. IN TERMS OF DIFFERENCE THIS YEAR, THE MOST SIGNIFICANT DISCLOSURES, OF COURSE, THERE'S THE DISCLOSURES ON YOUR CASH AND CASH EQUIVALENTS. SO HOW YOUR MONEY IS SITTING THERE, YOUR MONEY THAT'S NOT INVESTED IN YOUR FIXED ASSET YET. WHAT THAT IS INVESTED IN. SO OF COURSE THAT'S A SIGNIFICANT DISCLOSURE ALL OF YOUR LONG TERM DEBT. THOSE DISCLOSURES ARE SIGNIFICANT AS WELL. AND THEN OF COURSE WE ALWAYS HAVE THE ECONOMIC DEPENDENCY FOOTNOTE THAT JUST SAYS, HEY, THIS ENTITY ITSELF IS RELIANT ON THESE THREE CITIES. THESE THREE CITIES FUND THIS ENTITY, RIGHT. SO IF THAT WERE TO STOP, OF COURSE, THEN THEN WE WOULDN'T HAVE A VCR, RIGHT? SIGNIFICANT UNUSUAL TRANSACTIONS, NOTHING THERE IDENTIFIED OR SUSPECTED FRAUD, NOTHING THERE. USUALLY, IF THERE WAS AND Y'ALL DIDN'T KNOW ABOUT IT, Y'ALL WOULD. I WOULD COME TO YOU BEFORE NOW. SO THAT'S ALWAYS GOOD TO HAVE. NO, NO. THERE. SIGNIFICANT DIFFICULTIES ENCOUNTERED DURING THE AUDIT.
NONE. UNCORRECTED AND CORRECTED MISSTATEMENTS. THAT'S REALLY WHERE IF WE HAD TO COME IN AND MAKE A LOT OF ADJUSTMENTS DURING THE AUDIT, LET'S SAY ACCRUALS WEREN'T BOOKED, THINGS WEREN'T MOVED OUT OF CIP INTO FIXED ASSETS. DEPRECIATION WAS A BOOK CORRECTLY LIKE IF WE HAD TO GO IN AND MAKE A LOT OF ENTRIES TO GET THE NUMBERS MATERIALLY CORRECT, THAT'S USUALLY AN INDICATION THAT MAYBE THERE'S A SIGNIFICANT DEFICIENCY IN THE FINANCIAL ACCOUNTING DEPARTMENT.
WE DIDN'T HAVE ANYTHING LIKE THAT. SO THAT'S JUST SOMETHING TO POINT OUT THERE THAT ALWAYS MAKES THE AUDIT SO MUCH EASIER. AND THEN WE DIDN'T HAVE ANY PAST AUDIT ADJUSTMENTS EITHER. SO SOMETIMES WE'LL HAVE LITTLE THINGS THAT COME UP. AND BECAUSE OF THE MATERIALITY SOMETIMES AS AS MANAGEMENT OR THE AUDITORS, WE COULD AGREE TO PASS ON THEM OR BOOK THEM NEXT YEAR. WE REALLY DIDN'T HAVE ANY OF THOSE EITHER. SO THAT'S REALLY A TESTAMENT TO THE FINANCIAL ACCOUNTING TEAM JUST MAKING SURE THAT THE NUMBERS WERE GOOD BEFORE WE GOT IN THERE, SO WE DIDN'T HAVE TO MAKE A LOT OF ADJUSTMENTS. NO DISAGREEMENTS WITH MANAGEMENT CIRCUMSTANCES THAT AFFECT THE FORM AND CONTENT OF THE AUDITOR'S REPORT. NOTHING REALLY TO NOTE THERE.
REPRESENTATIVE REPRESENTATIONS REQUESTED BY MANAGEMENT. THAT SECOND FROM THE BOTTOM THERE.
THAT'S JUST WHERE WE GET MANAGEMENT TO SIGN WHAT WE CALL A MANAGEMENT REPRESENTATION LETTER. IT'S JUST PART OF WHAT WHAT'S REQUIRED AT THE END OF THE AUDIT. IT JUST SAYS THAT MANAGEMENT'S PROVIDED US EVERYTHING THAT WE'VE ASKED FOR. THEY HAVEN'T FALSIFIED ANY DOCUMENTS. THEY ACTUALLY TAKE RESPONSIBILITY FOR THE FINANCIAL STATEMENTS. SO WE HAVE THEM SIGN THAT. NO OTHER MANAGEMENT CONSULTATIONS WITH OTHER ACCOUNTANTS. AND THEN ON THAT LAST PAGE, OTHER SIGNIFICANT FINDINGS ARE MATTERS. NOTHING TO NOTE THERE. THE MODIFICATION OF THE AUDITOR'S REPORT. WE DO JUST POINT OUT THAT THERE'S ALWAYS AN EMPHASIS OF MATTER PARAGRAPH.
JUST REGARDING THE BCR DEPENDENCY ON THE ON THE CITIES THEMSELVES. THE ONLY OTHER THING THAT WAS REALLY NEW THIS YEAR. IF YOU LOOK AT THE AUDIT REPORT, IT HAS A SCHEDULE OF FEDERAL EXPENDITURES IN THE BACK. SO BCRA DID SPEND THE 5 MILLION THAT WAS FROM WILLIAMSON COUNTY.
AND SO THAT TRIGGERED WHAT WE CALL A SINGLE AUDIT. THAT'S JUST AN AUDIT OF THOSE FEDERAL EXPENDITURES. SO WE LOOKED SPECIFICALLY AT HOW THAT 5 MILLION WAS SPENT, MADE SURE IT WAS IN ACCORDANCE WITH THE GRANT. AND SO THAT SHOULD BE A ONE TIME THING. BUT JUST SO YOU KNOW, ANYTIME THERE'S FEDERAL EXPENDITURES OVER THE $750,000 MARK, THAT'S WHAT TRIGGERS THE FEDERAL SINGLE AUDIT. SO THAT'S ALL MY REQUIRED COMMUNICATIONS. I'M HAPPY TO TAKE ANY QUESTIONS OVER ANYTHING I'VE GONE OVER OR THE REPORT ITSELF. THANK YOU. DO YOU HAVE ANY QUESTIONS? OKAY.
ALL RIGHT. OKAY. I DO WANT TO THANK MANAGEMENT. THEY WERE ALWAYS GREAT TO WORK WITH. WE GOT THE AUDIT DONE TIMELY. AND LIKE I SAID WE DIDN'T HAVE A LOT OF AUDIT ADJUSTMENTS. SO THAT'S ALWAYS NICE. SO YOU ALL HAVE A GOOD TEAM IN PLACE. THANK YOU. THANKS, REBECCA. ALL RIGHT. THIS IS AN ACTION ITEM, AND I'LL MAKE A MOTION TO APPROVE THE 2023 2024 FINANCIAL AUDIT. SECOND.
ALL RIGHT. WE HAVE A MOTION IN THE SECOND. ALL THOSE IN FAVOR SAY AYE. ANY OPPOSED? ALL RIGHT.
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MOTION CARRIES. MOVE ON TO ITEM SEVEN A, CONSIDER A RESOLUTION ACCEPTING THE BCR QUARTERLY INVESTMENT REPORT FOR OCTOBER 1ST, 2024 THROUGH DECEMBER 31ST, 2024. WELCOME. AM I ON? CAN YOU HEAR ME? WE CAN HEAR YOU. YOU'RE ON. SO HELLO, I'M TODD BARTON, CITY MANAGER HERE IN LEANDER.YOU GOT THE B TEAM? ACTUALLY THE C TEAM. I'M NOT A FINANCIAL DIRECTOR. I'VE NEVER BEEN A FINANCE DIRECTOR. I NEVER PLAYED ONE ON TELEVISION. SO WE'RE GOING TO DO OUR BEST TO WALK US THROUGH HERE TODAY. MR. POWERS IS HAS RETIRED FROM THE CITY OF LEANDER, AND HE'S OFF TO GREENER PASTURES. SO WE WISH HIM WELL IN HIS ENDEAVORS. SO I'M TRYING TO FILL IN TODAY, AND YOUR NEXT QUARTERLY REPORT WILL PROBABLY BE MUCH MORE FANTASTIC. BUT LET ME LET ME WALK YOU THROUGH, SEE WHAT WE HAVE HERE. IN LOOKING AT THE OVERALL RATE ENVIRONMENT RIGHT NOW NATIONALLY OVER THE LAST QUARTER, WE'VE REALLY SEEN A MIX OF RESULTS IN TERMS OF SHORTER TERM ISSUES, INTEREST RATES VERSUS LONG TERM INTEREST RATES. BUT OVERALL, OUR MARKET IS EXPECTING ABOUT A -1.5% RESERVE RATE CUT. SO WE'RE EXPECTING TO SEE LOWER INTEREST RATES HAPPENING AT LEAST ON THE COMMERCIAL SIDE COMING UP INTO 2025. SO WE'LL SEE WHERE THAT GOES. WE ARE STILL SEEING A STRONG UNEMPLOYMENT NUMBERS BEING REPORTED. SO THAT'S SO WE HAVE A STABLE ECONOMY.
EMPLOYMENT IS THERE WHERE IT NEEDS TO BE. INFLATION IS TENDING HIGHER OVER THE LAST FEW MONTHS. THERE IS AN EXPECTATION THAT DOES BEGIN TO LEVEL OFF AND DROP. SO FOR THIS YEAR COMING UP WE'RE EXPECTING TO SEE PROBABLY ABOUT A 2.5 2.6% INFLATIONARY FACTOR. AND MOVING FORWARD INTO THE LONGER TERM VISION, THE FED TARGET IS A 2% RATE INCREASE THAT WE SEE. SO AGAIN, AS A RESULT, WE'RE SEEING THAT MIX OF SHORT TERM INTEREST RATES DROPPING. SO OUR INVERSE YIELD CURVES ARE LOOKING POSITIVE WHICH INDICATES NO RED FLAGS IN THE ECONOMY AT THIS POINT. WITH REGARD TO CASH ON HAND, INVESTMENT INCOME FOR THIS LAST QUARTERLY PERIOD WAS ABOUT $1.3 MILLION. OUR WEIGHTED AVERAGE MATURITY FOR OUR INVESTMENTS IS ABOUT 22 DAYS. OUR WEIGHTED AVERAGE YIELD FOR ALL OF OUR INVESTMENTS IS 2.66%. SO, YOU KNOW, AS LOOKING AT THESE NUMBERS, IT REMINDS ME A FEW YEARS AGO WE WERE HAPPY TO SEE A 0.6%, YOU KNOW, RETURN ON OUR INVESTMENTS. THAT'S OUT THERE. OUR CURRENT MARKET VALUE OF OUR PORTFOLIO IS ABOUT $169 MILLION.
AGAIN, OUR ACCRUED INTEREST FOR THE PERIOD WAS ABOUT $200,000. WE IF YOU LOOK BACK AT LAST QUARTER, AS OF SEPTEMBER 30TH, 2024, WE HAD A PAR VALUE OF ABOUT $106.4 MILLION. THAT VALUE TODAY WAS THE END OF DECEMBER. 31ST WAS $168.6 MILLION. THAT'S BECAUSE WE HAD TWO MAJOR CASH INFUSIONS, ONE FROM LEANDER AND ONE FROM ROUNDROCK. LEANDER WAS ABOUT 39 MILLION, AND THERE WAS ABOUT 31 MILLION FOR ROUND ROCK. AND THAT WAS THE ADDITIONAL FUNDING THAT NEEDED TO BE BROUGHT FORWARD FOR THE PHASE TWO A I'M SORRY, PHASE TWO PROJECT. WE HAVE SOME ADDITIONAL DOLLARS THAT WILL BE COMING AS WE MOVE FORWARD TO CONTRIBUTE FOR THE PHASE TWO, A PROJECT A LITTLE BIT LATER THIS YEAR. SO UNLESS THERE'S ANY QUESTIONS, THAT'S WHAT WE HAVE TO REPORT TO YOU THIS EVENING. THANK YOU. ANY QUESTIONS OKAY. ALL RIGHT. THANK YOU. THANK YOU. THIS IS A ACTION ITEM. I MOVE TO APPROVE A RESOLUTION AS PRESENTED. SECOND. ALL RIGHT. WE HAVE A MOTION. AND A SECOND. ALL THOSE IN FAVOR SAY AYE. AYE. ANY OPPOSED? ALL RIGHT. MOTION CARRIES. THE TIME IS NOW 619. AND WE WILL CONVENE INTO EXECUTIVE SESSION. WE'LL CONSIDER AN EXECUTIVE SESSION AS AUTHORIZED BY 55 1.071 OF THE GOVERNMENT CODE RELATED TO CONSULTATION WITH THE BOARD'S ATTORNEYS REGARDING PENDING AND OR I'M SORRY, CONTEMPLATED. LITIGATION TIME IS 619 AND WE WILL CONVENE. COME ON. MY SON'S GRADUATING AND I DON'T HAVE TIME. ALL RIGHT.
THE TIME IS 716, AND WE'LL RECONVENE INTO SESSION. BACK FROM OUR EXECUTIVE SESSION. WE WILL END WITH NUMBER NINE DIRECTOR. CLOSING COMMENTS. WE'LL START WITH VICE PRESIDENT
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DUFFY. THANKS, EVERYONE, FOR ALL YOUR WORK. WHEN WE'RE NOT ALL TOGETHER, I APPRECIATE YOU. AND WE WILL CERTAINLY MISS JASON, BUT HIS SPIRIT WILL LIVE ON. AND THANK YOU. THANK YOU. SECRETARY RENEE FLORES. GOOD NIGHT. THANK YOU, EVERYBODY, FOR ALL THEIR EFFORTS. AND AGAIN, MY CONDOLENCES TO JASON AND HIS FAMILY. THANK YOU. DIRECTOR HILDA MCGINLEY. GOOD NIGHT EVERYONE. AND DIRECTOR KIRKLAND. GOOD NIGHT. THANK YOU ALL FOR ATTENDING. ALL RIGHT. WE WILL END THIS MEETING. THANK YOU ALL FOR BEING HERE TONIGHT. AND WE DO SEND OUR DEEPEST CONDOLENCES TO JASON ANDERSON'S FAMILY AND HIS CHILDREN. AND I'M PRAYING FOR COMFORT FOR THEM DURING THIS DIFFICULT TIME. AND WE ALSO WANT TO MAKE SURE IT'S OKAY WITH THE BOARD IF WE IN LIEU OF FLOWERS, IF WE GO AHEAD AND MAKE A DONATION TO HIS CHILDREN'S EDUCATION FUND THROUGH A GOFUNDME THAT HIS COMPANY AND SOME OTHER ENGINEERS SET UP, AND IF YOU ALL ARE OKAY WITH THAT, THEN SAM WILL TAKE CARE OF GETTING THAT DONATION MADE. OKAY WITH THAT? AWESOME. VERY GOOD.WELL, THE TIME IS NOW
* This transcript was compiled from uncorrected Closed Captioning.