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HomeMy WebLinkAbout2026 05 20 BAWA MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY May 20, 2026 The Board of Directors of the Baytown Area Water Authority (BAWA) met in a Regular Meeting on May 20, 2026, at 5:00 P.M., in the Baytown Area Water Authority Meeting Room, located at 7425 Thompson Road, Baytown, Texas with the following in attendance: Brenda Bradley Smith Frank McKay III Alyssa Linares David Start, Jr. Carol Haddock Scott Lemond Angela Jackson President Vice President Director Director Acting Assistant General Manager General Counsel Assistant Secretary President Brenda Bradley Smith convened the May 20, 2026, BAWA Board Regular Meeting with a quorum present at 5:04 P.M., all members were present with the exception of Director Alyssa Linares who arrived at 5:08 P.M. 1. CITIZEN COMMENTS President Brenda Bradley Smith announced no one signed up to speak. 2. MINUTES a. Consider approving the minutes of the Baytown Area Water Authority Regular Meeting held on April 15, 2026. A motion was made by Director David Start, Jr., and seconded by Vice President Frank McKay III to approve the meeting minutes of the Baytown Area Water Authority Regular Meeting held on April 15, 2026. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director David Start, Jr. Nays: None Other: Director Alyssa Linares (Not Present for Vote) Approved 3, BAYTOWN AREA WATER AUTHORITY FISCAL YEAR 2026-2027 PROPOSED BUDGET BAWA Board Regular Meeting Minutes May 20, 2026 Page 2 of 4 a. Receive and discuss the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget. Director of Finance Teresa McKenzie presented the Baytown Area Water Authority's Fiscal Year 2026-2027 Proposed Budget related to agenda Item 3.a., and provided the following overview for the proposed budget (Exhibit A), and offered any questions from the Board. • Starting Working Capital: $9.5 million • Total Proposed Revenues: 24.2 million (includes 6.7%rate increase) • Operating Expenses (includes personnel time, maintenance and services): $14.2 million • Transfers Outs: o Debit Services $9.5 million o BAWA Capital Improvement Projects: $5.9 million o Transfer to General Fund for Administrative Expenses: $350,000.00 • Total Expenditures: $30.6 million • Ending Working Capital Balance: $3.2 million • Days of Operating Expenditures: 82 Days Vice President Frank McKay III asked what is the guideline for minimum operating day expenses and Ms. McKenzie responded, their policy is 60 to 90 days. Superintendent of BAWA Christopher Wallace provided further clarification and stated they did some research and they were not able to find a policy specifically for BAWA but they do have an internal policy for the City for 90 days. Vice President Frank McKay III further expressed concern with dwindling down the days of Operation Expenses and will it look like this next budget year. Director David Start, Jr. responded there is $9.5 million in Debt Services and the SWIFT Loan which is $3 million more than it was last year, and the transfer to Capital Improvement Projects is $3 million more as well, so there is $6 million alone. Ms. McKenzie stated that the Debit Services Schedule is set for the $9 million debit payment scheduled for next year, and referred to Rafael to provided further information as it relates to the Capital Improvement Projects portion. Assistant Director of Engineering and Public Works over Capital Improvement Projects Rafael Errisuriz further clarified they are currently working on exploring other revenues to replenish the funds that were taken out. President Brenda Bradley Smith noted a revision that needs to be made to page eighty-nine of the proposed budget as it lists Jimmy Smith as Board Member and he is no longer a Board Member. Ms. McKenzie stated that she will ensure that this information is updated. b. Set a public hearing for the Baytown Area Water Authority Fiscal Year 2026-2027 Proposed Budget. President Brenda Bradley Smith announced that the public hearing related to Item 3.b., will be set for Wednesday, June 17, 2026, at 5:00 P.M. A motion was made by Director Alyssa Linares, and seconded by Vice President Frank McKay III to approve Resolution No. 2026-11, related to Item 3 .b. The vote was as follows: BAWA Board Regular Meeting Minutes May 20, 2026 Page 3 of 4 Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director Alyssa Linares, Director David Start, Jr. Nays: None Approved RESOLUTION NO.2026-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN AREA WATER AUTHORITY ESTABLISHING THE DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE FISCAL YEAR 2026-2027 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. REPORTS a. Receive a report on the status of the Baytown Area Water Authority East Expansion Project. Senior Project Manager Ms. Lindsay Kovar, with BGE, Inc. provided a presentation regarding the status of the expansion project and pointed out that the Texas Water Development Board ("TWDB") has approved the plans and has issued a Notice to Proceed. Alternatively, since there was a delay in receiving the Notice to Proceed there will be a slight change in the final completion date in the next report. (Exhibit B) Additionally, Ms. Kovar noted there will need to be a Special BAWA Meeting scheduled in the near future to accommodate the timeline to apply for the Texas Water Development Board Drinking Water State Revolving Fund Emerging Contaminants Program that has been approved for approximately $10 million, which is a 100% principal forgiveness for the planning and pp y designing phase. Director Aly ssa Linares asked if we could request the two-year extension and if testing has already started. Ms. Kovar responded that we could certainly apply for an extension if needed in the future and some testing has been completed but more would need to be done in the future. Vice President Frank McKay III questioned which plants these funds would address and Ms. Kovar responded that it would be for both plants and this is a separate project; therefore, updates will be provided as a separate item in the future. b. Receive the Baytown Area Water Authority Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2026. Director of Finance Teresa McKenzie presented the Quarterly Financial and Investment Report to the Board for quarter ending March 31, 2026, and the Board considered the report as received. (Exhibit C) Director David Start Jr stated the Operating Fund is approximately six months into the year and that it looks like the Interest Income Computation will be approximately $150,000 short from what was y reviousl projected. Ms. McKenzie responded that at the moment yes, but they just p BAWA Board Regular Meeting Minutes May 20, 2026 Page 4 of 4 received approval from the Texas Water Development Board, State Water Implementation Fund for Texas ("TWDB SWIFT") Loan to release the funds and once that money comes in they expect the interest to increase once those funds are invested. 5. MANAGER'S REPORT a. The next Baytown Area Water Authority meeting is scheduled for Wednesday, June 17, 2026, at 5:00 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas 77520. Acting Assistant General Carol Haddock opened agenda item 5.a. by introducing herself to the Board as the new Director of Public Works and Engineering and expressed her desire to serve the Board. Further, Ms. Haddock reminded the Board their next meeting is scheduled for Wednesday, June 17, 2026, at 5:00 P.M., at City Hall, 2401 Market Street, Baytown, Texas 77520. 6. TOUR a. The Baytown Area Water Authority board will participate in a tour of the Baytown Area Water Authority facility. Superintendent of BAWA Christopher Wallace provided a tour and overview of the operations of the of the Baytown Area Water Authority facility located at 7425 Thompson Road, Baytown, Texas. 7. ADJOURN A motion was made by Director David Start, Jr., and seconded by Director Alyssa Linares to adjourn the May 20, 2026 Baytown Area Water Authority Board Regular Meeting at 6:03 P.M. The vote was as follows: Ayes: President Brenda Bradley Smith, Vice President Frank McKay III, Director Alyssa Linares and Director David Start, Jr. Nays: None Approved Angela JacK n, City of Baytown ATEr� r; -z 4� O > -� - r ,G ^C = 3 nF r ry: �r't �`,` .tit.. BAYTOWN AREA WATER AUTHORITY ooe EXHIBIT "A" COMPONENT UNITS Baytown Area Water Authority Overview Objective The Baytown Area Water Authority (BAWA) presides over the City's wholesale supplier of water utilities and its facilities, equipment and supplies. Duties Discuss all matters pertaining to the business of the Authority, including the vetting of work, purchase of existing facilities, and matters relating to the construction work. Our Mission Continues Over the years, we have dedicated ourselves to producing drinking water that meets all state and federal standards. We continually strive to adopt new methods for delivering the best -quality drinking water to you. As new challenges to drinking water safety emerge, we remain vigilant in meeting the goals of source water protection, water conservation, and community education while continuing to serve the needs of all our water users. Budget Executive Summary This fund accounts for the operations of the Baytown Area Water Authority (BAWA). BAWA is a water authority created by the Texas Legislature to supply water for the City of Baytown (City) and surrounding communities. BAWA services a total of eight customers with the City as the largest customer, generating approximately 90% of BAWA's annual sales. BAWA is a separate legal entity; however, it is considered a component unit of the City. Since it began operating, BAWA has not experienced shortages of its raw water supply to the plant or interruptions of service to its customers. BAWA Board of Directors Jimmy Smith Secretary BUDGET EXECUTIVE SUMMARY Revenues For FY2026-2027, the revenue projections for water sales and investment earnings have been developed based on updated consumption trends, adopted rate adjustments, and current market conditions. Total revenues for the Baytown Area Water Authority (BAWA) Operating Fund are projected at approximately $24.21 million. Water Sales — Baytown Projected revenue for Baytown water sales is $21,904,299 for FY2026-2027. This estimate reflects a 6.7% rate increase, raising the water rate from $4.19 to $4.47 per 1,000 gallons in accordance with the adopted BAWA rate policy. Consumption projections are based on estimated demand of approximately 5.23 billion gallons for FY2027. Water Sales — Other Customers Revenue from outside customers is projected at $1,920,907 for FY2026-2027. This projection incorporates a 6.7% rate increase, raising the wholesale water rate from $4.39 to 4.68 per 1,000 gallons. Consumption estimates are based on projected demand of approximately 486 million gallons for FY2027. Investment Interest Investment earnings are budgeted at $385,000 for FY2026-2027. This projection is based on anticipated investment balances and continued stable interest rate conditions. The increase over prior years reflects sustained earnings performance and the expectation of continued favorable market conditions throughout the fiscal year. Expenses & Working Capital Operating Expenses: Total operating expenditures for FY2027 are budgeted at approximately $14.21 million, compared to the FY2026 adopted budget of $14.04 million. Non -Operating Expenses: Non -operating expenditures for FY2027 include major transfers and capital investments necessary to support long-term infrastructure improvements and debt obligations. Capital Outlays — Budgeted at $580K for machinery and equipment. Transfers Out — Debt Service: Budgeted at $5.36 million, reflecting annual principal and interest requirements for outstanding BAWA revenue bonds. Transfers Out — SWIFT Loan: Budgeted at $4.18 million related to the Texas Water Development Board (TWDB) SWIFT Program financing for major infrastructure improvements. Transfers Out — Capital Improvement Program: Budgeted at $5.88 million to support ongoing and planned capital projects. Transfers Out — General Fund: Budgeted at $350,000, consistent with prior years to support administrative costs. Total expenditures for FY2027 are budgeted at approximately $30.57 million Working Capital Ending: The FY2027 budget projects an ending working capital balance of approximately $3.18 million in the Operating Fund. Days of Operating Expenses: BAWA is projected to maintain approximately 82 days of operating reserves in FY2027 K BAYTOWN AREA WATER AUTHORITY FUND 3500 BUDGET SUMMARY BY FUND Actual 2024- 25 Budget 2025- 26 Estimated 2025- 26 Budget 2026- 27 Revenues Sale of Water - Baytown 19,472J129 20,344,606 20,528,865 210904,299 Sale of Water - Other 1,611,520 10729,730 10803,246 1,920,907 Interest Revenue 362,875 372,915 367,385 385,000 Federal Contribution 126,106 Total Revenues 21,572,631 22,447,251 220699,495 24,210,206 Expenditures Personnel Services 2,030,741 2/3490762 2,235,171 2,272,663 Supplies 81566,315 10,041,291 10,041,291 10,321,331 Maintenance 5650278 3948656 3940656 452,750 Services 101450458 10256,894 10256,894 1/1670568 Sundry Total Operating 12,307,791 14,0420603 13,9280012 14,214,312 Non -Operating Expenditures Capital Outlay 600000 60,000 580,000 Transfers Out - Debt Service 5,459,482 504500587 50450,587 5,3620769 Transfer Out - SWIFT Loan 1/2740439 11274,439 4,183,844 Transfers Out - Capital Improvement 4,368,290 2/0440000 2/0440000 50884,000 Transfers Out - General Fund 350,000 350,000 350,000 350,000 Contingency Total Expenditures 22,485,564 23,221,629 23,107,038 30,574,924 Excess (Deficit) Revenues Over Expenditures 912,933) 774,379) 407,543) 61364;719) GAAP to budget basis adjustment Working Capital - Beginning 10,866,358 90953,425 91953,425 91545,882 Working Capital - Ending 9,953,425 9,1790046 9,545,882 3,181,163 Days of Operating Expenditures 295 239 250 82 14 BAWA Capital Improvement Program BAWA Capital Improvement Projects Fund The Capital Improvement Program (CIP) for BAWA is funded through the issuance of revenue bonds, grants, and revenue from operations. FY2026- 2027 New Project Requests: o BAWA2604- PFAS Regulatory Treatment $550,000 -Rehabilitation of BAWA SWP Ground Storage Tanks is required based on age and wear and tear revealed by inspection. The GSTs are 4.5 MG in size. Combined project BAWA2104 to replace the existing valves on the ground storage tanks and add actuators o BAWA2302 -Ground Storage Tank Rehabilitation $804,000 -This project will look to add additional treatment techniques at the BAWA Fritz Lanham WTP in response to the newly established perfluoroalkyl and polyfluoroalkyl-substances PEAS) regulations. EPA finalized a National Primary Drinking Water Regulation NPDWR) that establishes legally enforceable levels for six perfluoroalkyl and polyfluoroalkyl substances (PEAS) in drinking water. Public water systems have five years (by 2029) to implement solutions that reduce these PEAS in drinking water levels who exceed these MCLs. Currently Baytown has 2 contaminants above the newly established standards. This project is designed to comply with updated EPA standards. o BAWA2602 Main MCC3: $1,330,000 - MCC3 Electrical Upgrade o BAWA2603 Sedimentation Basin Improvements $3,315,000 -Project includes structural repairs to sedimentation basins, replacement of chain and flight sludge collector mechanisms, instrumentation and appurtenances. o BAWA2605 Chemical Feed System $350,000 -Project includes structural repairs to the chemical feed building, replacement of one chlorine exhaust fan, and replacement of the North Ferric Tanks. 92 No new capital expenditures are planned for the following projects in FY2026-2027, as funding and/or construction costs were previously appropriated. The proposed budget includes the estimated carryforward amounts for these projects: o BAWA2103 Raw Water Rehabilitation -This project would replace the existing BAWA Forebay liner, raw water pumps and motors with variable frequency drive VFD) pumps/motors at the Fritz Lanham Surface Water Plant. o BAWA2301 Backwash and Decant Pump Replacement -This project will replace the existing decant and backwash pumps and motors to increase reliability and control of surface water sludge processes. o BAWA2401 East Plant II Expansion -Construction and design of a six (6) million gallons per day (MGD) expansion of the existing surface water treatment plant south of Interstate Highway (IH)1 0 and west of SH 99 along the Coastal Water Authority (CWA) Barbers Hill Canal. o BAWA2402 Administration Building - Perform a minor remodel of office space updating the finishes, and replace the HVAC system, replace the roof, plumbing upgrades, and electrical upgrades. o BAWA2502 Condition Assessment - o Condition Assessment Report determines the remaining useful life of various capital assets, and helps program future projects. 93 BAWA - CAPITAL IMPROVEMENT PROGRAM FUND 3510 BUDGET SUMMARY BY FUND Revenues Transfer In -Operating Interest Revenue Total Revenues Expenditures BAWA2103- Raw Water Rehabilitation BAWA2301-Backwash and Decant Pump Replacement BAWA2401-East Plant II Expansion BAWA2402-Administration Building BAWA2502- Condition Assessment BAWA2602- BAWA Main MCC3 BAWA2603-Sedimentation Basin Imp. BAWA2604- PFAS Regulatory Treatment BAWA2605-Chemical Feed System BAWA2302 -Ground Storage Tank Rehabilitation Total Expenditures Excess (Deficit) Revenues Over Expenditures Working Capital -Beginning Working Capital -Ending Actual Budget Estimated Budget 2024-25 2025-26 2025-26 2026-27 4,368,290 $200448000 $2,044,000 $5,884,000 880580 80,000 95,308 80,000 41456,870 2,1240000 20139,308 5,964,000 350611 1980017 121,548 76,469 141,104 40958,896 237,932 4/7200964 1,302,500 353,579 948,922 2360455 307,026 125,855 181,171 191,285 119,633 16,633 103,000 225,000 225,000 1,330,000 465,000 31315,000 550,000 54,000 54,000 350,000 804,000 604,455 71630,072 1,134547 12,658,525 31852,415 51506,072) 11004,761 616941525) 21427,855 6,280,270 61280,270 7,564,031 60280270 $ 774,198 $7,285,031 $ 869,506 I BAWA Debt Service For the year ending September 30, 2027 Debt service expenditures for FY2026-2027 are budgeted at approximately $9.55 million, which includes $5.36 million for existing BAWA Revenue Bond obligations and $4.18 million associated with the Texas Water Development Board (TWDB) SWIFT Program financing. These payments support the Authority's long-term infrastructure investments and continued system improvements while maintaining compliance with bond covenants and financing requirements. The FY2027 debt service budget reflects scheduled principal and interest payments for all outstanding bond series and the newly issued SWIFT financing for major capital improvement projects. Combined BAWA Debt, All Series Debt Requirements to Maturity 6,000,000 5,000,000 0 0 4,000,000 00 c 3,000,000 2,000,000 1,000,000 Fiscal Year io Interest Principal 95 BAYTOWN AREA WATER AUTHORITY REVENUE BONDS LONG TERM DEBT AMORTIZATION SCHEDULES Series 2012 8,315,000 2,190,000 335,000 73,169 408,169 1,855,000 Series 2018 22,040,000 17,700,000 1,000,000 789,650 1,789,650 16,700,000 Series 2019 17,315,000 12,565,000 785,000 401,450 1,186,450 11,780,000 Series 2024 21,525,000 19,570,000 1,000,000 978,500 1,978,500 18,570,000 52,025,000 3,120,000 2,242,769 5,362,769 48,905,000 Combined BAWA Debt, All Series Debt Requirements to Maturity Fiscal Principal Total Total Year 5/01 Interest Requirement 2027 3,120,000 2,242,769 5,362,769 2028 3,210,000 2,100,900 5,310,900 2029 3,350,000 1,954,588 5,304,588 2030 3,500,000 1,801,888 5,301,888 2031 3,655,000 1,650,500 5,305,500 2032 3,815,000 1,491,725 5,306,725 2033 3,980,000 1,325,600 5,305,600 2034 4,160,000 1,145,900 5,305,900 2035 4,330,000 975,400 5,305,400 2036 4,510,000 797,700 5,307,700 2037 4,690,000 612,350 5,302,350 2038 4,880,000 419,350 5,299,350 2039 2,945,000 218,250 3,163,250 2040 1,880,000 94,000 1,974,000 Total 52,025,000 16,830,919 68,855,919 we Baytown Area Water Authority Contract Revenue Bonds, Series 2025 TWDB SWIFT Program - May 2025 Rates Debt Service Schedule Part 1 of 3 Date Principal Coupon Interest Total P+I Fiscal Total 11/15/2025 05/01 /2026 1,274,439.18 1,274,439.18 11/01/2026 1,381,922.00 1,381,922.00 05/01/2027 1,420,000.00 2.810% 1,381,922.00 2,801,922.00 09/30/2027 - 4,183,844.00 11/01/2027 1,361,971.00 1,361,971.00 05/01/2028 1,460,000.00 2.770% 1,361,971.00 2,821,971.00 09/30/2028 4,183,942.00 11/01/2028 1,341,750.00 1,341,750.00 05/01/2029 1,500,000.00 2.780% 1,341,750.00 2,841,750.00 09/30/2029 4,183,500.00 11/01/2029 1,320,900.00 1,320,900.00 05/01/2030 1,545,000.00 2.800% 1,320,900.00 2,865,900.00 09/30/2030 4,186,800.00 11/01/2030 1,299,270.00 1,299,270.00 05/01/2031 1,585,000.00 2.850% 1,299,270.00 2,884,270.00 09/30/2031 4,183,540.00 11/01/2031 1,276,683.75 1,276,683.75 05/01/2032 1,630,000.00 2.920% 1,276,683.75 2,906,683.75 09/30/2032 4,183,367.50 11/01/2032 1,252,885.75 1,252,885.75 05/01/2033 1,680,000.00 2.990% 1,252,885.75 2,932,885.75 09/30/2033 4,185,771.50 11/01/2033 1,227,769.75 1,227,769.75 05/01/2034 1,730,000.00 3.050% 1,227,769.75 2,957,769.75 09/30/2034 4,185,539.50 11/01/2034 1,201,387.25 1,201,387.25 05/01/2035 1,780,000.00 3.170% 1,201,387.25 2,981,387.25 09/30/2035 4,182,774.50 11/01/2035 1,173,174.25 1,173,174.25 05/01/2036 1,840,000.00 3.260% 1,173,174.25 3,013,174.25 09/30/2036 4,186,348.50 11/01/2036 1,143,182.25 1,143,182.25 05/01/2037 1,900,000.00 3.460% 1,143,182.25 3,043,182.25 09/30/2037 4,186,364.50 11/01/2037 1,110,312.25 1,110,312.25 05/01/2038 1,965,000.00 3.570% 1,110,312.25 3,075,312.25 09/30/2038 4,185,624.50 11/01/2038 1,075,237.00 1,075,237.00 05/01/2039 2,035,000.00 3.690% 1,075,237.00 3,110,237.00 09/30/2039 4,185,474.00 11/01/2039 1,037,691.25 1,037,691.25 05/01/2040 2,110,000.00 3.800% 1,037,691.25 3,147,691.25 BAWA SWIFT App June Rates SINGLE PURPOSE 1 6/ 2/2025 1 12:59 PM Baytown Area Water Authority Contract Revenue Bonds, Series 2025 TWDB SWIFT Program - May 2025 Rates Debt Service Schedule Part 2 of 3 Date Principal Coupon Interest Total P+I Fiscal Total 09/30/2040 4,185,382.50 11/01/2040 997,601.25 997,60125 05/01/2041 2,190,000.00 3.900% 997,601.25 3,187,601.25 09/30/2041 4,185,202.50 11/01/2041 954,896,25 954,896.25 O5/01/2O42 2,275,000.00 4.010% 954,896.25 3,229,896.25 09/30/2042 4,184,792.50 11/01/2O42 909,282.50 909,282.50 05/01/2043 2,365,000.00 4.120% 909,282.50 3,274,282.50 09/30/2043 4,183,565.00 11/01/2043 860,563.50 860,563.50 05/01/2044 2,465,000.00 4.230% 860,563,50 3,325,563.50 09/30/2044 4,186,127.00 11/01/2044 808,428.75 808,428.75 05/01/2045 2,570,000.00 4.290% 808,428.75 3,378,428.75 09/30/2045 4,186,857.50 11/01/2045 753,302.25 753,302.25 O5/01/2046 2,680,000.00 4,370% 753,302.25 3,433,302.25 09/30/2046 4,186,604.50 11/01/2046 694,744.25 694,744.25 O5/01/2047 2,795,000.00 4.550% 694,744.25 3,489,744.25 09/30/2047 4,184,488.50 11/01/2O47 631,158.00 631,158.00 05/01/2048 2,920,000.00 4.550% 631,158.00 3,551,158.00 09/30/2048 4,182,316.00 11/01/2O48 564,728.00 564,728.00 05/01/2049 3,055,000.00 4.550% 564,728.00 3,619,728.00 09/30/2049 4,184,456.00 11/01/2O49 495,226.75 495,226.75 05/01/2050 3,195,000.00 4.550% 495,226.75 3,690,226.75 09/30/2050 - 4,185,453.50 11/01/2050 - 422,540.50 422,540.50 O5/01/2051 3,340,000,00 4.550% 422,540.50 3,762,540.50 09/30/2051 4,185,081.00 11/01/2O51 346,555.50 346,555.50 05/01/2052 3,490,000.00 4.630% 346,555.50 _ 3,836,555.50 09/30/2052 4,183,111.00 11/01/2052 265,762.00 265,762.00 O5/01/2O53 3,655,000.00 4.630% 265,762.00 3,920,762.00 09/30/2053 4,186,524.00 11/01/2O53 181,148.75 181,148.75 O5/01/2O54 3,825,000.00 4.630% 181,148.75 4,006,148.75 09/30/2054 4,187,297.50 BAWA SWIFT App June Rates I SINGLE PURPOSE 1 6/ 2/2025 1 12:59 PM Hilltop Securities Houston Public-'" E Baytown Area Water Authority 0- Contract Revenue Bonds, Series 2025 TWDB SWIFT Program - May 2025 Rates Debt Service Schedule Part 3 of 3 Date Principal Coupon Interest Total P+I Fiscal Total 11 /01 /2054 - 05/01/2055 4,000,000.00 4.630% 09/30/20 i - 92,600.00 92,600.00 92,600.00 4,092,600.00 4,1 S.2011.00 I otal $69,000,000.00 53,639,788.68 122,639,788.68 Yield Statistics Bond Year Dollars Average Life --- __ Avcrage Coupon Net Interest Cost (NIC) S 1 247.196.67 18.075 Years 4,3008284% 4.3008284% True Interest Cost (TIC) 4.2425292% Bond Yield for Arbitrage Purposes 4.2425292% All Inclusive Cost (AIC) 4.2889796% IRS Form 8038 Net Interest Cost 4.3008284% Weighted Average Maturity 18.075 Years BAWA SWIFT App June Rates I SINGLE PURPOSE 1 6/ 2/2025 1 12:59 PM Hilltop Securities Houston Publicg" Project: BAWA East Surface Water Treatment Plant Phase 2 Expansion Date: May Progress Report 1. Previous Months Activities A. TWDB Design Package approval B. NTP issued on 4/17/2026 C. Groundbreaking D. Trailer Mobilization 2. Project Highlights A. Schedule 1) Phase 2 Completion – July 2028 2) Phase 2 Acceptance & Final Completion – September 2028 B. Outstanding Agency Reviews 1) TWDB NTP C. Funds Available ($79,000,000) PROGRESS REPORT EXHIBIT "B" PROGRESS MEETING AGENDA City of Baytown BAWA East STP Phase 2 Expansion May 20, 2026 Page 2 BGEINC\DATA2\00011922-01\02_CORRESPONDENCE\01_CLIENT\BAWA BOARD MEETING\MAY 2026\RPT_PROGRESS REPORT_20260520_REV.DOCX D. Project Budget with GMP Price Proposal GMP Category Contract Budget Authorized Spent (12.5%) Funds Remaining A B C A-B Direct Construction $ 47,350,183 $ 47,350,183 $ 311,303 $ - BWP Allowances $ 425,000 $ 425,000 Contingencies $ 3,822,015 $ 3,822,015 Phase 2 Design & Construction Admin $ 3,798,071 $ 3,798,071 $ 695,219 $ - Bonds & Insurance $ 2,532,559 $ 2,532,559 $ 722,344 $ - Design Builder Fee $ 5,358,324 $ 5,358,324 $ 157,535 $ - Phase 1 Services $ 6,496,709 $ 6,496,709 $ 6,496,709 $ - Total Design Builder GMP $ 69,782,861 $ 65,535,846 $ 8,383,110 $ 4,247,015 Material Testing $ 600,000 $ 319,645 $ 280,355 Pulsed Bed Clarifier $ 2,092,798 $ 2,092,798 $ - Recommended Owner Contingency $ 2,434,091 $ 2,434,091 Fiscal Services $ 382,000 $ 366,272 $ 366,272 $ 15,728 Owner’s Advisor w/ Constr Mgmt & Inspection 3,473,578 $ 3,473,578 $ 1,108,712 $ - TOTAL Project Budget $ 78,765,328 $ 71,788,139 $ 9,858,094 $ 6,977,189 BAWA East Water Plant Progressive Design Build BAWA Board Meeting May 20, 2026 Activities to Report TWDB Design Package approval on 4/15/2026 NTP issued on 4/17/2026 Groundbreaking 4/21/2026 Trailer Mobilization on 5/7/2026 Project Budget (through March 2026) GMP Category Contract Budget Authorized Spent (12.5%)Funds Available A B C A-B Direct Construction $ 47,350,183 $ 47,350,183 $ 453,084 $ - BWP Allowances $ 425,000 $ 425,000 Contingencies $ 3,822,015 $ 3,822,015 Phase 2 Design & Construction Admin $ 3,798,071 $ 3,798,071 $ 695,219 $ - Bonds & Insurance $ 2,532,559 $ 2,532,559 $ 722,344 $ - Design Builder Fee $ 5,358,324 $ 5,358,324 $ 15,754 $ - Phase 1 Services $ 6,496,709 $ 6,496,709 $ 6,496,709 $ - Total Design Builder GMP $ 69,782,861 $ 65,535,846 $ 8,383,110 $ 4,247,015 Material Testing $ 600,000 $ 319,645 $ 280,355 Pulsed Bed Clarifier $ 2,092,798 $ 2,092,798 $ - Recommended Owner Contingency $ 2,434,091 $ 2,434,091 Fiscal Services $ 382,000 $ 366,272 $ 366,272 $ 15,728 OA with CMI $ 3,473,578 $ 3,473,578 $ 1,108,712 $ - Project Budget $ 78,765,328 $ 71,788,139 $ 9,858,094 $ 6,977,189 Schedule Phase 2 Substantial Completion July 2028 Phase 2 Acceptance & Final Completion September 2028 Remaining Approvals: TWDB NTP approval BAYTOWN AREA WATER AUTHORITY (BAWA) - Period Ending March 31, 2026 BAYTOWN AREA WATER AUTHORITY (BAWA) Period Ending March 31, 2026 Operating Fund CY to PY Revised Budget CY Actual Balance %PY Actual Change $ Revenues Water Sales - Baytown 20,344,606$ 8,921,728$ 11,422,878$ 44%9,546,585$ (624,857)$ Total Expenditures include $6,209,366 in Encumbrances Revenue from BAWA Operating 2,044,000 1,022,000 1,022,000 50%2,184,975 (1,162,975) Texpool 27,838,322$ 252,198$ Total Revenues 2,124,000 1,058,552 1,065,448 50%2,224,406 (1,165,854) Expenditures Capital Outlay 10,819,854$ 855,548 9,964,305 8%983,706 (128,158) Net Change (8,695,854) 203,004 1,240,700 Beg. Working Capital 6,280,270 6,280,270 Ending Working Capital (2,415,583)$ 6,483,275$ Total Expenditures include $687,780 in Encumbrances Quarterly Financial Report 44% 67% Investments (Book Value) Q2 2026 Unaudited Financials EXHIBIT "C"