Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City under programs of the federal government for the year ended September 30, 2025. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.
The City received financial assistance under the Clean Water State Revolving Fund (CWSRF) administered by the Texas Water Development Board (ALN 66.458). Federal expenditures are recognized when eligible project costs are incurred. As of September 30, 2025, the City had an outstanding CWSRF loan balance of $23,880,000 (Commitment No. L1001809) and a $3,400,000 principal‑forgiveness award (Commitment No. LF1001810) associated with the same agreement. Principal forgiveness funds are recognized as federal expenditures only as eligible costs are incurred. The unspent portion of the principal‑forgiveness award at year‑end was $3,206,620, including related investment earnings.