Tammy J. McRae

The Board meeting covered several operational and administrative matters. The engineer's report confirmed the completion of the TxDOT FM 1097 waterline relocation and included approval of Pay Estimate No. 1 for the Point Aquarius Subdivision Section 1 Waterline Replacement Phase 7. Further engineering work involves restoring a storm inlet and coordinating drainage work with a property owner. The operator's report noted 1,256 active accounts with 91.35% water accountability. The operator reported that Frontier damaged water and sewer lines, and the Board authorized the write-off of an outstanding balance for the fire department's irrigation line leak. Director Lorch agreed to address a dispute with a resident regarding driveway repair following waterline leak mitigation. The attorney reported on the transition of engineering duties and the upcoming review of a global amendment to participant contracts. The Board also addressed the annual requirement to submit eminent domain information to the Texas Comptroller, authorizing the submission by the February 1, 2026 deadline. Administratively, Steve Callaway was elected as the Board Secretary, and the Board convened in executive session to discuss the appointment of a public official.

The Board addressed public comments regarding lift station monitoring and landscape services. Key actions included the appointment of a new director, the election of officers for the upcoming term, and the acceptance of engineering, operator, and bookkeeper reports detailing water infrastructure progress, operational accountability, and current fund balances. Additionally, the Board reviewed website service modifications, adopted an order regarding delinquent tax penalties, complied with Senate Bill 625 regulatory reporting requirements, and affirmed the identity theft prevention program. Deliberations also touched on groundwater reduction contracts and a potential adjustment to legal service rates.

Key discussions included a financial advisor's report detailing tax exemption scenarios and their impact on tax rates. The Board approved an Order Adopting Homestead Exemption granting a 20% exemption, and an Order Adopting Residence Homestead Exemption for Persons 65 or Older or Disabled granting specific exemptions based on age or disability status. An unqualified "clean" audit opinion for the fiscal year ending September 30, 2025, was approved and authorized for filing. The Board authorized the attorney to complete the required annual continuing disclosure filing for bondholders. Resolutions affirming the review of the Investment Policy and compliance with Texas Government Code Chapter 2270 regarding investments were adopted and authorized. Compliance updates for Texas Tax Code Section 26.18 concerning publicly available information were authorized, including updating the document with the latest audit. The bookkeeper's report, showing general, tax, and debt service fund balances, was approved. The engineer's report confirmed the completion of the TxDOT FM 1097 waterline relocation and the Point Aquarius Subdivision Section 1 Waterline Replacement Phase 7, and approved Pay Estimate No. 3 for ongoing work. The operator's report, noting water accountability at 92% and capacity utilization of the wastewater treatment plant at 29%, was approved. The Board deferred consideration of an Order Appointing Director and reviewed correspondence from the San Jacinto River Authority regarding a proposed global amendment to groundwater reduction contracts, requesting feedback by February 28, 2026. The Board took the request for an increase in attorney and legal assistant hourly fees under advisement.

The Board of Directors meeting agenda includes several key items: opening with Public Comments; approval of the Minutes of the January 20, 2026 Board Meeting; review of the Financial Advisor's Report and Bookkeeper's Report, including payment of bills and investment reports; Engineer's Report with authorizations for engineering and advertisements for bids, contract awards, and approval of change orders; Operator's Report covering maintenance, repairs, and termination of service on delinquent accounts; yearly review of the Off Cinco Website; Attorney's Report; an order levying additional penalty for delinquent taxes; the Annual Report to the Texas Comptroller; annual review and affirmation of the FTC Identity Theft Red Flag Policy; request for feedback on proposed Global Contract Amendment to the SJRA Groundwater Reduction Planning Contracts; discussion of attorney contract fees and rates; an Executive Session to consult with attorneys regarding litigation, property value deliberation, personnel duties, and security matters; an Order Appointing Director, including approval of qualifications and oath of office; Election of Officers; and Pending Business.

The Board of Directors will hold a public meeting to consider and act on several items, including financial advisor and bookkeeper reports, payment of bills, investment reports, and cash analysis. The agenda also includes an engineer's report on bid authorizations, contract awards, and facility operations, an operator's report on maintenance, repairs, and customer service issues, and an attorney's report. The meeting will conclude with executive sessions to discuss pending litigation, real property matters, and security personnel or devices, followed by pending business and adjournment.