MONTGOMERY COUNTY MUNICIPAL UTILITY …...2012/09/12 · The Board of Directors (the "Board" or...

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

MINUTES OF REGULAR MEETING

SEPTEMBER 12, 2012

The Board of Directors (the "Board" or "Directors") of Montgomery County Municipal Utility District No.8 (the "District" or "MCMUD 8") met in regular session, open to the public, on Wednesday, September 12,2012, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

Roy McCoy Bob Leasure Daniel L. Davis Dan Fryman John Tryon

President Vice President Assistant Vice President Secretary Assistant Secretary

All members of the Board were present. Also attending were Katherine Turner of Municipal Accounts & Consulting L.P. ("Bookkeeper"); Erich Peterson and Justin Abshire of Jones & Carter, Inc. ("Engineer"); Danny Wright of Hays Utility North Corporation ("Operator"); Ernie Harris and Jerry Nispel of Montgomery County Municipal Utility District No.9 ("MCMUD 9"); Scott Sustman, General Manager of the Walden Community Improvement Association ("WCIA"); Edward Mogee, a District resident; Ross J. Radcliffe and Elliot M. Barner of Johnson Radcliffe Petrov & Bobbitt PLLC ("Attorney"); and all persons listed on the attached attendance roster.

The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board was present, called the meeting to order and declared it open for such business as may come before it.

1. Public Comments. The President first opened the meeting to public comment.

a. Mr. Mogee, the owner of The Lodge, addressed the Board and inquired as to the method of calculating the District's water bills for The Lodge and requested a rate sheet. Mr. Wright indicated that he would provide a rate sheet.

As no further public comments were offered, the President directed the Board to proceed with the agenda.

2. Minutes. The President next directed the Board to the approval of the minutes of the regular meeting of August 8, 2012, and the special meeting of August 9, 2012. Upon a motion by Director Davis, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting of August 8, 2012, and the special meeting of August 9,2012, as presented.

00117079

3. Consent Agenda. The Board next considered the Consent Agenda. Upon a motion by Director Davis, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board approved the items on the Consent Agenda, as follows:

a. The Tax Assessor-Collector's Report, attached as Exhibit "A"; b. The Bookkeeper's Report, attached as Exhibit "B"; c. The Engineer's Report, attached as Exhibit "C"; and d. The Operator's Report, attached as Exhibit "D. "

4. Additional Items from the Tax Assessor-Collector.

a. Ms. Turner presented the Delinquent Tax Roll, a copy of which is attached as Exhibit "E," and indicated that several accounts are listed as deferred. Ms. Turner stated that she does not believe deferred accounts can be terminated. Mr. Radcliffe indicated that delinquent taxpayers must be provided an opportunity to appear and appeal. Upon a motion by Director Leasure, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board authorized the Tax Assessor/Collector to send a letter to those customers that are also delinquent taxpayers.

5. Additional Items from the Bookkeeper. The Board next considered additional items from the Bookkeeper, as follows:

a.

b.

c.

d.

e.

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The Board reviewed a Snap Shot Financial Report as of September 12, 2012, prepared by the Bookkeeper, a copy of which is attached as Exhibit "F."

The Board next reviewed a Revenue and Expenditure Comparison for 2011 and 2012 as of September 12, 2012, a copy of which is attached as Exhibit "G."

Ms. Turner presented the Quarterly Investment Inventory Report for the Period Ending June 30, 2012, a copy of which is attached hereto as Exhibit "H." Upon a motion duly made, seconded and unanimously carried, the Board approved the Quarterly Investment Inventory Report for the Period Ending June 30, 2012.

Mr. Radcliffe next presented an Order Reviewing Investment Policy and Investment Strategies, a copy of which is attached hereto as Exhibit "I, " and an Order Amending List of Qualified Brokers, a copy of which is attached hereto as Exhibit "J." Mr. Radcliffe stated that reviewing the Investment Policy was an annual requirement of the Texas Public Funds Investment Act, but that no changes were being proposed at this time. Upon a motion by Director Davis, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board approved the Order Reviewing Investment Policy and Investment Strategies and the Order Amending List of Qualified Brokers.

A discussion ensued regarding the engagement of Mark M. Burton, P.L.L.C. to review adjusted trial balances, capital asset and depreciation schedules, fund journal entries, government-wide adjustments, draft and financial statements, and completion of GASB 34 disclosure checklist. Ms. Turner indicated that Mr. Burton's fee for such services will range from $1,500 to $2,000. Upon a

2

motion by Director Leasure, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board accepted the proposal to engage Mark Burton.

f. Ms. Turner presented an Agreement for Bookkeeping Services of Municipal Accounts & Consulting L.P., a copy of which is attached as Exhibit "K." Director Fryman asked Ms. Turner if additional charges are incurred for special analysis and, if so, the amount of such charge. Ms. Turner responded the budget and audit analysis are outside the monthly processing fee. Ms. Turner added that the financials at a glance are included in the monthly processing fee. Director Fryman next asked if Ms. Turner prepares a soft cost analysis of Bill Norris' estimates. Ms. Turner responded that she prepares a soft cost analysis of Mr. Norris' estimates which is included in the monthly processing fee. Upon a motion by Director Davis, seconded by Director Fryman, after full discussion and with three (3) Directors voting aye, and Directors McCoy and Leasure abstaining, the Board approved the Agreement for Bookkeeping Services and agreed that the time of Ms. Turner's attendance at Board meetings shall not exceed two (2) hours.

Ms. Turner exited the meeting at this time.

6. Director Davis next stated that he spent 4.5 days assisting NRS in collecting samples. Upon a motion by Director Tryon, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board authorized payment of four (4) per diems to Director Davis to obtain samples.

7. Additional Items from the Engineer.

a.

b.

c.

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Water Plant Improvements Project. Mr. Abshire reported that Nunn Constructors, Inc. ("Nunn") has completed all items, except for replacement of the Hydro Pneumatic Tank No. 1 ("HPT") at the Poe Street Water Plant. Mr. Abshire further reported that delivery of the new HPT is currently scheduled for October 10, 2012. Mr. Abshire stated that delivery of the HPT will not delay placing the Poe Street Water Plant back online and that when Water Well No.1 (IWW1") is ready to be placed back online, the Poe Street Water Plant can return to service with the remaining HPT.

Water Well Reworks Project. Mr. Abshire reported that Weisinger, Inc. ("Weisinger") is nearing completion of the rework of WW1 at the Poe Street Water Plant. Mr. Abshire added that Weisinger is expected to re-install the pumping equipment during the week of September 10, 2012, followed by taking bacterial tests ("Bac-Ts"). Upon receipt of passing Bac-Ts, the WW 1 can be placed back in service which is expected to occur in approximately one (1) week.

Wastewater Treatment Plant ("WWTP") Digester Replacement and Elevated Headworks Project. Mr. Abshire reported that design on this project has begun, that the topographic survey is completed, and that the Engineer is in receipt of the geotechnical report. Mr. Abshire further reported that the Engineer expects to be ready to submit preliminary drawings to the City of Conroe and Montgomery

3

County for initial review by mid-October, obtain approvals in November, and be prepared to begin advertisement in December.

d. Sanitary Sewer Line Rehabilitation Project.

(1) Mr. Abshire reported that construction drawings of the Sanitary Sewer Rehabilitation Project are being prepared and that the Engineer will coordinate with the Engineering Committee for review of the drawings. Mr. Abshire further reported that the Engineer expects to begin advertisement in October, after the October regular Board meeting.

(2) Mr. Abshire next reported that the Engineer is prepared for the District's town hall meeting on September l3, 2012, at 7:00 p.m. and that the Engineer will be prepared to discuss the scope of the Sanitary Sewer Rehabilitation Project with District residents and the impact the project will have on the District's residents and their property.

(3) Mr. Abshire then discussed the Policy Concerning Existing Facility Removal and Replacement for Sanitary Sewer Rehabilitation (the "Policy"). Upon a motion by Director Fryman, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board adopted the Policy, a copy of which is attached as Exhibit "L."

8. Additional Items from the Operator.

a.

b.

c.

d.

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Mr. Wright reported they noticed a differential in flow in the clarifier and a water elevation difference in the aeration basin, so they drained the clarifier and one of the aeration trains to clean them out. Mr. Wright recommended that the weirs be replaced. The Board authorized Jones & Carter to investigate the clarifier issue, and bring a cost estimate for weir replacement to the next Board meeting.

Mr. Wright reported that Luke Bryan received his Class "A" operator's license. Upon a motion by Director Davis, seconded by Director Fryman, after full discussion and with all Directors present voting aye, the Board authorized presenting Mr. Bryan with a framed Certificate of Appreciation.

Director McCoy stated that he wants to receive copies of all lab analysis. Mr. Wright indicated that he would provide Director McCoy with such lab analysis.

Mr. Wright next reported that he would like to resume cleanup work on the five (5) acre tract adjacent to the WWTP. Mr. Wright added that work was halted by wildlife people because of nesting birds in the area. Mr. Wright stated that he would like to mulch the area.

4

9. State and Local Agency Reports.

a. Texas Water Development Board/Region H Planning Group.

(1) Director Davis reported that there has been no comment from the San Jacinto River Authority related to receiving water from the Trinity River Authority.

(2) Director Davis next reported that new population projections are available and that projections are higher than the previous year, but only about 1.5 percent higher.

b. Lone Star Groundwater Conservation District (flLSGCD fI ).

(1 ) Director McCoy reported that the meeting with LSGCD went well. Director McCoy further stated that if 36,000 acre feet per year through 2050 are run out of the Catahoula, it will still be full, but it is still going to be regulated by LSGCD.

(2) Mr. Wright stated that the United States Geological Survey pulled samples the prior week for Montgomery County Municipal Utility District Nos. 3 and 4 and samples have been requested for Montgomery County Municipal Utility District No. 18.

(3) Director Davis discussed credits and inquired as to whether the District would want to talk to the City of Montgomery. Upon a motion by Director Davis, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized the District Engineer to talk with William 1. Kotlan, P.E., the City of Montgomery City Manager.

Mr. Nispel entered the meeting at this time.

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(4) Director Davis discussed the amount of water permitted from the Jasper Aquifer and Mr. Wright responded that it must be reduced by thirty percent (30%).

c. Walden Community Improvement Association. Nothing new to report during the past month.

d. MCMUD 9 Report.

(1)

(2)

(3)

Director Leasure indicated that MCMUD 9 discussed the options for increasing the $0.53 per 1,000 gallons Groundwater Reduction Plan (flGRPfI) fee to $0.60.

The MCMUD 9 Board discussed the potential condemnation proceeding related to lots on Walden Road.

The MCMUD 9 Board discussed the lift station generators.

5

(4) The MCMUD 9 Board discussed the use of purple pipe for the new water lines.

e. Community Communications Committee Report. No significant items were reported.

f. Emergency Response Committee Report. No significant items were reported.

10. Association of Water Board Directors e"A WBD") Mid-Winter Conference.

a. Mr. Radcliffe requested the Board's authorization of the Directors' attendance at the AWBD Mid-Winter Conference in Austin, Texas, on Friday, January 25, 2012 through Saturday, January 26, 2012. Upon a motion by Director Fryman, seconded by Director Davis, after full discussion and with four (4) Directors present voting aye and Director Leasure voting no, the Board authorized the Directors' attendance for two (2) nights at the A WBD Mid-Winter Conference on behalf of the District.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.

PASSED AND APPROVED this the 10th day of October, 2012.

Secretary, Board ofDirecto~

EXHIBITS: A - Tax Assessor-Collector's Report B Bookkeeper's Report C Engineer's Report D Operator's Report E Delinquent Tax Roll F Snap Shot Financial Report G Revenue and Expenditure Comparison for 2011 and 2012 H Investment Inventory Report I Order Reviewing Investment Policy and Investment Strategies J Order Amending List of Qualified Brokers K Agreement for Bookkeeping Services of Municipal Accounts & Consulting L.P. L Policy Concerning Existing Facility Removal and Replacement for Sanitary Sewer

Rehabilitation

00117079 6

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dl~~~/~J~~~&74 ~ .. ~._ .. ___ ._ ..

13101 Melville Drive' Montgomery, Texas 77356 . 936/582-4222 . Fax 936/582-2438 www.waldenonlakeconroe.com

fv'lONTGOMERY COUNTY office of

TAX ASSESSOR AND COLLECTOR

Monthly Tax Collection Report

For the month of July, 2012 as of 9-August-2012

J.R. Moore, Jr. Conroe, Tx 77301-2823

To: Montgomery County MUD 8

This is a letter to certify both the accounting and disbursement of the monthly collections made by Montgomery County for your Taxing Entity during the month of JULY, 2012.

Collection amounts:

2011 Taxes Prior Years Taxes Rendition - All Years Other Subtotal

* Reversals Property Tax Collection Fee Rendition Penalty Collection Fee Disbu rsements

Grand Total

J.R. Moore, Jr.

Gross $ 4,604.30

$

488.30 0.45

(170.78)

(0.03) (2,722.83)

Montgomery County Tax Assessor-Collector

SUBSCRIBED AND SWORN TO before this trrH day of

* Reversals are Refunds, Returned Items and Daily Transfers

EXHIBIT

IA-

Note: Attorney fees are not included with this report. They are sent directly to attorneys pursuant to attorney contracts.

Montgomery County Tax Office Monthly Collections Detail for Montgomery County MUD 8 for the month of July, 2012

Property Tax

Levy Paid Penal~/lnterest ** Disburse Amount Attorne~ Pa~ment Amount 2011 $ 4,123.41 $ 480.89 $ 4,604.30 $ 380.40 $ 4,984.70 Prior Years 370.50 117.80 488:30 97.66 585.96 Other Subtotal $ 4,493.91 $ 598.69 $ - 5,092:60 $ 478.06 $ 5,570.66

*Current Reversals (170.78) - -(170;78) (170.78) *Delinquent Reversals

Subtotal $ 4,323.13 $ 598.69 $ 4;921.82 $ 478.06 $ 5,399.88 2% Current Collection Fee 5% Delinquent Collection Fee Disbursements ~2,391.632 P31.201 {2j722;832 (210.09} (2,932.92}

Tax Total $ 1,931.50 $ 267.49 .$ --- 2,198;99 $ 267.97 $ 2,466.96

Rendition Penalty -.

Levy Paid Penal~/lnterest -Disburse-Amount - Attorne~ Pa:tment Amount 2011 $ $ :$ $ $ Prior Years 0.32 0.13 OA5 0.09 0.54 Other Subtotal $ 0.32 $ 0.13 $- -·0,45 $ 0.09 $ 0.54

*Current Reversals *Delinquent Reversals

Subtotal $ 0.32 $ 0.13 $ 0.09 $ 0.54 5% Rendition Fee (0.02) (0.01) (0.03) Disbursements

...,~ -' .' -'" ,~ .

Rendition Penalty Total $ 0.30 $ 0.12 0.42 $ 0.09 $ 0.51

Grand Total $ 1,931.80 $ 267.61 .. :** $ 2,199.41 $ 268.06 $ 2,467.47

* Reversals are Refunds, Returned Items and Daily Transfers ** Disburse Amount is the amount being deposited in your bank account via ACH.

08/01/2012 15:26:0 TC16B

1 I

1257548 TAX COLI,ECTrON SYSTEr~

TA,'{ COL.L.ECTOR MONTHLY REPORT

FRON 07/01/2012 TO 07/31/2012

FISCAL START: 03/011;2012 END: 09/30/2012 JURISDICTION: 0408 HONTGOr-1ERY COUtll'Y l~l1D 08

i !

PAGE: 32

INCLUDES AG ROLLBACK

CER'1 TAXABLE VALUE ADJUSTMENTS ADJ TAX Vl\LUE TAX Rl\TE TAX LEVY PAID ACCTS

CORRENT YEAR o 389,939,271 389,939,271 0.265100 1,033,729.04 2,550

YEAR TAXES DUE 1'10NTIl AD,} ADJUST~l ENT YTD LEVY PAID PAID YTD BALANCE COLL % YTD UNCOLL

--------------------------------------------------------------------------------------------------------------------------

2011 64,515.93 170.78- 352.52·· 3,952.63 50,339.23 13,824.18 78.45. 0.00

2 oro 8,552.37 .00 1.51- 326.02 1,'726.38 6,824.48 20.19 1. 51-

2009 4,632.99 .00 94.70 22.99 582.15 4,145.54 12.31 0.00

2008 1,875.42 .00 172.76 21. 49 130.86 1,917.32 6.39 3.63 -

2u67 1,865.75 .00 3 .53- 0.00 3.88 1,858.34 .21 3.53-

2006 1,662.35 .00 3.79- 0.00 4.16 1,654.40 .25 3.79-

2005 325.71 .00 3.35- 0.00 3.69 318.67 1. 14 3.35·-

20(14 317.36 .00 3.62 - 0.00 3.98 309.76 1.27 3.62 -

2003 331. 08 .00 3.77 - 0.00 4.15 323.16 1. 27 3.77 -

2002 412.65 .00 3.77 - 0.00 4.15 404.73 1.01 3.77-

20t!J. 368.00 .00 4.47- 0.00 4.92 358.61 1.35 4.47"

2oilO 366.48 .00 4.45 0.00 4.90 357.13 1. 35 4.45 -

.19~9 799.92 .00 8.16 - 0.00 8.97 782.79 1.13 8.16 -

1998 834.71 .00 8.31- 0.00 9.14 817.26 1.11 8.31-

1997 814.73 .00 8.67 - 0.00 9.53 796.53 1. 18 8.67

1996 244.36 .00 9.16- 0.00 10.07 225.13 4.28 9.16-

1995 244.61 .00 9.17- 0.00 10.08 225.36 4.28 9.17-

19'94 215.69 .00 0.00 0.00 0.00 215.69 0.00

19'93 215.69 .00 0.00 0.00 0.00 215.69 0.00

19,92 215.69 .00 0.00 0.00 0.00 215.69 0.00

k *:* * 88,811.49 170.78- 160.79- 4,323.13 52,860.24 35,790.46 79.36-

*This Y-T-O collection report does not include October 1,2011 through February 17, 2012 collections

tvh.JNICIPAL ACCOUNTS . CONSULTING, L.P

Montgomery County Municipal

Utility District No.8

Bookkeeper's Report

September 12,2012

EXHIBIT

I B 200 River Pointe· Suite 240 • Conroe, Texas 77304 • Phone: 936.756.1644 • Fax: 936.756.1844

1

Fund: Operating

Financial Institution (Acct Number)

Certificates of Deposit

TEXAS CAPITAL BANK (XXXX2545)

IBC BANK (XXXX6150)

BANK OF HOUSTON (XXXX0396)

GREEN BANK (XXXX0067)

TEXAS COMJ,fUNITY BANK (XXX.X8612)

IBC BANK (XXXX8358)

ICON BANK (XXXX3231)

Money Market Funds

TEXPOOL (XXXXOOOl)

Checking Account(s)

WOOD FOREST BANK (XXXX9722)

WOODFOREST BANK (XXXX7941)

Fund: Capital Projects

Money Market Funds

TEXPOOL (XXXX0003)

\'(TELLS FARGO TRUST (XXXX0600)

TEXPOOL (XXXX0004)

COl\fPASS BANK-ESCRO\x' (XXXX2493)

Checking Account(s)

WOOD FOREST BANK (XXXX9947)

Fund: Debt Service

Money Market Funds

TEXPOOL (XXXX0002)

TEXPOOL (XXXX0006)

TEXPOOL (XXXX0007)

Fund: Tax

Checking Account(s)


Fund: STP

Checking Account(s)


Montgomery County MUD No.8

Account Balances As of September 12, 2012

Issue Date

04/17/2012

OS/26/2012

06/22/2012

07 /20/2012

07/16/2012

08/23/2012

08/20/2012

05/31/2007

12/21/2011

12/21/2011

04/18/2012

05/01/2012

Maturity Date

09/14/2012

10/23/2012

11/19/2012

12/17/2012

01/12/2013

02/19/2013

03/18/2013

Interest Rate

0.25 %

0.50%

0.15 %

0.25 %

0.50%

0.50 %

0.39%

0.13 %

0.05%

0.05%

Totals for Operating Fund:

0.13 %

0.01 %

0.13%

0.20%

0.00%

Totals for Capital Projects Fund:

12/21/2011

08/07/2012

08/08/2012

0.13%

0.13 %

0.13 %

Totals for Debt Service Fund:

0.05%

Totals for Tax Fund:

0.05%

Totals for STP Fund:

Grand total for Montgomery County MUD No.8:

2

Account Balance

145,000.00

100,000.00

95,000.00

240,000.00

240,000.00

100,000.00

240,000.00

816,600.04

449.49

Notes

Checking Account

276,278.87 Special Reserve Account

$2,253,328.40

148,513.93

1,252,799.99 Series 2011 T\X'DB

6,696,835.38 SERIES 2012

371,559.64 2012 Escrow

486.39 Checking Account

$8,470,195.33

56,659.86 Interest & Sinkin

20,502.00 2011-Reserve

289,741.88 2012 - I&S

$366,903.74

7,616.66 Checking Account

$7,616.66

27,145.46 Checking Account

$27,145.46

$11,125,189.59

Nllm Name

BALANCE AS OF 8/9/2012

Receipts

Trf from Investments


Interest earned

Accounts Recei\'able-Cleared

Accounts Receivable-O/S

M&O Transfer for J uly


Total Receipts

Disbursements

6018 Arch Payne

6096 Daniel L Davis

6151 Weisinger Water Well Inc.

6152 Coldwell Banker

6153 Karen Montana

6154 Mary Henry

6155 Pam & Chris Eberling

6156 Richard Jordan

6157 Swuare Fix LLC

6158 Johnson Radcliffe Petrov & Bobbitt

6159 Roy McCoy,Jr.

6160 Claude D Fryman

6161 Robert W Leasure

6162 John FTrvon . . 6163 VOID Check



6166 Roy McCoy,Jr.


6168 Daniel L Davis

6169 John F Tryon

6170 Robert \"X7 Leasure

6171 Roy McCoy,Jr.


6173 Daniel L Davis

6174 John FTryon


6176 Roy McCoy,]r.

6177 Booth, Ahrens & Werkenthin, P.e.

6178 CenterPoint Energy

6179 City of Huntsville

6180 Consolidated Communications

6181 Enterb')'

6182 Hays Utility Service

6183 VOID Check

6184 Jones & Carter, Inc.

6185 Lone Star Groundwater

6186 Mont Co MUD 8 & 9 STP Fund

6187 Municipal Accounts & Consulting, LP

6188 Walden CIA.

MCMUD 8-GOF

Cash Flow Report - Checking Account As of September 12, 2012

Memo

VOID: Fee of Office 5/09/12 (S141.53)

Fee of Office 6/14/12

Water Well #1 & 2 Reworks - Progress Pymt #3

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Legal Fees

Fee of Office for? /19-21/12 & A \VBD Conferenc

Fee of Office for 7/18-22/12 - PFIA & A \VBD Co

Fee of Office for 7/18-22/12 - PFIA & A \1;lBD Co

Fee of Office for 7/19-21/12 & AWBD Conferenc

Printing Error

Fee of Office 8/23, 8/27/12

Fee of Office 8/16, 8/23, 8/27/12

Fee of Office 8/23, 8/27/12











Legal Fees thm 6/30/12

Utilities Expense

Legal-Bed & Banks Permit

Telephone Expense

Utilities Expense

AUh>ust Operations

Printing Error

Engineering Fees

Permit Fees

Joint Sewer Treatment Plant Billing

Bookkeeping - July 2012

Garbage & Meeting Expenses

3

ArrlOllnt Balance

$1,022.02

14,000.00

143,500.00

5.03

173,288.83

1,741.37

4,921.82

2.000.00

339,457.05

0.00

(141.53)

(143,907.75)

(41.00)

(32.74)

(41.00)

(34.40)

(34.40)

(41.00)

(11,142.05)

(2,185.44)

(2,234.43)

(1,792.74)

(1,311.88)

0.00

(283.05)

(424.57)

(283.05)

(141.53)

(141.52)

(141.53)

(141.53)

(141.53)

(141.52)

(141.53)

(141.52)

(141.52)

(141.52)

(18,887.38)

(118.29)

(516.75)

(312.89)

(425.84)

(59,073.03)

0.00

(5,052.25)

(4,980.01)

(24,039.76)

(2,404.89)

(27,693.01)

Num Name

Disbursements

6189

6190

6191

6192

6193

6194

6195

6196

Bank Chg

Ret Items

Wire

Adyantage :\sset Managment

Adyantage Homes

AJianza Group Inc

Escmilla Moreno & rV!ary Luz

John Copeland

\Vhiteley & Whiteley Design GP

Johnson Radcliffe Petro\, & Bobbitt

Dan Davis.

Bank Charges

\XJ oodforest Bank

Woodforest Bank

Total Disbursements


WOODFOREST BANK - #XXXX9722

MCMUD8-GOF

Cash Flow Report - Checking Account As of September U, 20U

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Deposit Refund

Legal Fees

Memo

Reimb. for Electronic Thermometer for CO Plant

Bank Charges

Retumed Items

Trf of GRP fees to Resef\'e

4

Amount

(41.00)

(126.45)

(227.45)

(40.40)

(39.20)

(260.80)

(17,462.50)

(211.35)

(266.79)

(356.42)

(1 ~J46.84)

Balance

(340.0~9.58)

$449.49

MCMUD 8 -GOF

Cash Flow Report - Special Reserve Account Account As of September 12, 2012

Num


Receipts

Interest-Woodforest Checking

Trf of GRP fees to Reserve

Total Receipts

Disbursements

No Disbursements Activity

Total Disbursements


Name

WOOD FOREST BANK - #XXXX7941

Memo

5

Amount

11.05

12.146.84

0.00

Balance

$264,120.98

12,157.89

0.00

$276,278.87

Revenues

14100 \Xlater - Customer Service Revenu

1411 0 Connection Fees

14200 Sewer - Customer Service Fee

14202 Inspection Fees

14320 Maintenance Tax Collections

14330 Penalties & Interest

14360 Grease Trap

14361 Encroachment & Flagging

14400 Lone Star Groundwater

14401 GRP Revenue

14600 Tap Connections

15380 i\1iscellaneous Income

15391 Interest Earned on Temp. Invest

15392 Interest Earned on Checking Acc

Total Revenues

Expenditures

13960 Transfer to Debt Service

16100 Bulk Water Purchase / JWP

16102

16103

16120

16135

16142

16180

16220

16235

16240

16275

16320

16321

16322

16324

16325

16326

16332

16333

16335

16336

16338

16340

16350

16351

16352

16353

16354

16355

16358

16359

16410

16520

16526.1

Water Plant Repairs & Maint

Security Monitoring Service

Lone Star Ground \Xlater Fee

Maintenance & Repairs - Water

Chemicals - Water

Reconnections

Purchase Sewer Service

Sewer Repairs & Maintenance

Lift Station Repairs & j\·faint

Sewer Inspection Expeme

Legal Fees

Auditing Fees

Engineering Fees

Laboratory Expense

Election Expense

Permit Expense

Service l\ccount Collection

Bookkeeping Fees

General Repairs & Maintenance

Storm Drainage Expense

Legal Notices & Other Pub!.

Printing & Office Supplies

Postage

Telephone Expense

Utilities

Insurance & Surety Bond

Travel Expense

District WEB Page

Bank Fees

Other Expense

Tap Connection Fees

TCEQ Assessment

Engineering

Me MUD 8 - GOF

Actual vs. Budget Comparison August20U

August 2012

Actual Budget Over/(Under)

84,770 120,000 (35,230)

3,300 1,667 1,633

49,947 49,800 147

1,960 333 1,627

3,161 74,167 (71,006)

1,176 1,190 (14)

60 60 0

o 83 (83)

2,168 2,7 50 (582)

16,414 19,250 (2,836)

11,600 1,813 9,788

30 167 (137)

74 500 (426)

___ --:1""'6 ___ ---"1.;;;.0 ____ ... 6

174,676 271,789 (97,113)

19,546

10,610

3,700

o 4,980

14,693

o 2,231

21,173

1,324

2,510

775

23,181

o o

224

o o

5,133

2,167

1,971

8,829

205

2,029

714

321

31

o 4,983

o 267

689

5,400

o 211

o 10,000

7,500

SO 1,660

16,667

o 1,235

16,656

10,000

3,000

433

12,700

o 6,667

667

833

o 5,375

2,000

833

100

SO

6

1,100

500

750

640

o 1,410

83

220

540

1,015

609

8,333

19,546

610

(3,800)

(50)

3,320

(1,973)

o 996

4,517

(8,676)

(490)

342

10,481

o (6,667)

(443)

(833)

o (243)

167

1,138

8,729

155

929

214

(429)

(609)

o 3,573

(83)

47

149

4,385

(609)

(8,122)

January 2012 - August 2012

Actual Budget Over/(Under)

Annual

Budget

407,536 565,000 (157,464) 864,000

18,450 13,333 5,117 20,000

396,224 398,400 (2,176) 597,600

4,900 2,667 2,233 4,000

373,077 528,333 (155,257) 890,000

7,377 9,520 (2,143) 14,280

480 480 0 720

o 667 (667) 1,000

10,086 13,100 (3,014) 20,880

76,610 107,475 (30,865) 164,100

30,000 14,500 15,500 21,750

266,066 1,333 264,733 2,000

1,914 4,000 (2,086) 6,000

___ ~1;..:.1.::..9 ___ --..:::8~0 ___ ----:;;3.;..9 __ --'1:..;:2;;:..0

1,592,839 1,658,888 (66,050) 2,606,450

29,389

55,122

28,622

o 15,070

100,478

148

13,064

100,088

59,601

26,372

2,526

137,326

12,750

56,969

2,698

7,121

o 40,899

16,883

6,777

80,640

80S

9,549

5,653

2,497

4,119

31,970

13,401

791

2,004

5,963

14,400

o 2,448

o 80,000

60,000

400

13,280

133,333

o 9,880

133,246

80,000

24,000

3,467

101,600

12,000

53,333

5,333

6,667

o 43,000

16,000

6,667

800

400

8,800

4,000

6,000

5,120

36,000

11,280

667

1,760

4,320

8,120

4,872

66,667

29,389

(24,878)

(31,378)

(400)

1,790

(32,855)

148

3,184

(33,157)

(20,399)

2,372

(941)

35,726

750

3,636

(2,635)

454

o (2,101)

883

110

79,840

405

749

1,653

(3,503)

(1,001)

(4,030)

2,121

125

244

1,643

6,280

(4,872)

(64,219)

o 120,000

90,000

600

19,920

200,000

o 14,820

199,868

120,000

36,000

5,200

152,400

12,000

80,000

8,000

10,000

8,000

64,500

24,000

10,000

1,200

600

13,200

6,000

9,000

7,680

36,000

16,920

1,000

2,640

6,480

12,180

7,308

100,000

MCMUD8-GOF

Actual vs. Budget Comparison August 2012

August 2012 January 2012 - A~ust 2012 Annual Actual Budget Over/ (Under) Actual Budget Over/ (Under) Budget

Expenditures

16526.2 Attorney 0 16,667 (16,667) 97,174 133,333 (36,160) 200,000

16526.3 B & B Pennit Fees 517 3,750 (3,233) 4,649 30,000 (25,351) 45,000

16600 Payroll Expenses 3,877 2.333 1.544 15,829 18,667 (2,8382 28.000

Total Expenditures 142,290 134,376 7,914 1,003,795 1,123,011 (119,216) 1,668,516

Other Expenditures

17001 Capital - Storm Sewer Repair 0 3,500 (3,500) 71,317 28,000 43,317 42,000

17009 Capital - Sewer 0 4,167 (4,167) 0 33,333 (33,333) 50,000

17010 Distribution System Upgrade 0 4,833 (4,833) 0 38,667 (38,667) 58,000

17304 Land Purchase 3,400 0 3,400 3,400 0 3,400 0

17322 Capital - Engineering 0 2,500 (2,500) 825 20,000 (19,175) 30,000

17390 Capital- Reclaim Wiater 630 0 630 48,820 0 48,820 0

Total Other Expenditures 4,030 15,000 (10,970) 124,362 120,000 4,362 180,000

Excess Revenues (Expenditures) S28,356 5122.413 (594,0572 5464,682 5415,878 548,804 5757,934

7

MCMUD8-GOF

Actual vs. Budget Comparison (%) August 2012

January 2012 - August 2012 (67%)

YTDActual Annual Budg:et Over/(Under) % of Budget

Revenues

14100 \Xlater Customer Service Revenu 407,536 864,000 (456,464) 47,2%

14110 Connection Fees 18,450 20,000 (1,550) 92.2%

14200 Sewer - Customer Service Fee 396,224 597,600 (201,376) 66.3%

14202 Inspection Fees 4,900 4,000 900 122.5%

14320 Maintenance Tax Collections 373,077 890,000 (516,923) 41.9%

14330 Penalties & Interest 7,377 14,280 (6,903) 51.7%

14360 Grease Trap 480 720 (240) 66.7%

14361 Encroachment & Flagging 0 1,000 (1,000) 0.0%

14400 Lone Star Groundwater 10,086 20,880 (10,794) 48.3%

14401 GRP Revenue 76,610 164,100 (87,490) 46.7%

14600 Tap Connections 30,000 21,750 8,250 137.9%

15380 Miscellaneous Income 266,066 2,000 264,066 13,303.0%

15391 Interest Earned on Temp. Invest 1,914 6,000 (4,086) 31.9%

15392 Interest Earned on Checking Acc 119 120 III 99.4%

Total Revenues 1,592,839 2,606,450 (1,013,611) 61.1%

Expenditnres

13960 Transfer to Debt Service 29,389 0 29,389 None

16100 Bulk \X1ater Purchase I JWP 55,122 120,000 (64,878) 45.9%

16102 Water Plant Repairs & Maint 28,622 90,000 (61,378) 31.8%

16103 Security Monitoring Service 0 600 (600) 0.0%

16120 Lone Star Ground \X/ater Fee 15,070 19,920 (4,850) 75.7%

16135 Maintenance & Repairs - Water 100,478 200,000 (99,522) 50.2%

16142 Chemicals - Water 148 0 148 None

16180 Reconnections 13,064 14,820 (1,757) 88.1%

16220 Purchase Sewer Service 100,088 199,868 (99,780) 50.1%

16235 Sewer Repairs & Mainten:l11ce 59,601 120,000 (60,399) 49.7%

16240 Lift Station Repairs & Maint 26,372 36,000 (9,628) 73.3%

16275 Sewer Inspection Expense 2,526 5,200 (2,674) 48.6%

16320 Legal Fees 137,326 152,400 (15,074) 90.1%

16321 Audiring Fees 12,750 12,000 750 106.3%

16322 Enb>ineering Fees 56,969 80,000 (23,031) 71.2%

16324 Laboratory Expense 2,698 8,000 (5,302) 33.7%

16325 Election Expense 7,121 10,000 (2,879) 71.2%

16326 Permit Expense 0 8,000 (8,000) 0.0%

16332 Service Account Collection 40,899 64,500 (23,601) 63.4%

16333 Bookkeeping Fees 16,883 24,000 (7,117) 70.3%

16335 General Repairs & Maintenance 6,777 10,000 (3,223) 67.8%

16336 Storm Drainage Expense 80,640 1,200 79,440 6,720.0%

16338 Lebral Notices & Other Publ. 805 600 205 134.2%

16340 Printing & Office Supplies 9,549 13,200 (3,651) 72.3%

16350 Postage 5,653 6,000 (347) 94.2%

16351 Telephone Expense 2,497 9,000 (6,503) 27.7%

16352 Utilities 4,119 7,680 (3,561) 53.6%

16353 Insurance & Surety Bond 31,970 36,000 (4,030) 88.8%

16354 Travel Expense 13,401 16,920 (3,519) 79.2%

16355 District \XIEB Page 791 1,000 (209) 79.1%

16358 Bank Fees 2,004 2,640 (636) 75.9%

16359 Other Expense 5,963 6,480 (517) 92.0%

16410 Tap Connection Fees 14,400 12,180 2,220 118.2%

16520 TCEQ Assessment 0 7,308 (7,308) 0.0%

16526.1 Engineering 2,448 100,000 (97,552) 2.4%

16526.2 Attorney 97,174 200,000 (102,826) 48.6%

8

MCMUD 8- GOF


January 2012 - August 2012 (67%)

YTDActual Annual Budget Over/ (Under)

Expenditures 16526.3 B & B Permit Fees 4,649 45,000 (40)51)

16600 Payroll Expenses 15.829 28.000 (12.171)

Total Expenditures 1,003,795 1,668,516 (664,721)

Other Expenditures

17001 Capital - Storm Sewer Repair 71,317 42,000 29,317

17009 Capital - Sewer 0 50,000 (50,000)

17010 Distribution System Upgrade 0 58,000 (58,000)

17304 Land Purchase 3,400 0 3,400

17322 Capital - Engineering 825 30,000 (29,175)

17390 Capital- Reclaim Water 48,820 0 48.820

Total Other Expenditures 124,362 180,000 (55,638)

Excess Revenues (Expenditures) $464.68" 5757.934 (51.733.970)

9

% of Budget

10.3%

56.5%

60.2%

169.8%

0.0%

0.0%

None

2.8%

None

69.1%

61.3%

Num Name


Receipts

Transfer from Texpool-0003 Ser 2011

Transfer from Texpool -0004 Ser 2012

Total Receipts

Disbursements

1012 Jones & Carter

1013 Municipal Accounts & Consulting, L.P.

1014 NRS Consulting Ellf:,>i.neers, Inc.

1015 Jones & Carter

Bank Chg Woodforest Bank

Total Disbursements



MC MUD 8 - CPF

Cash Flow Report - Checking Account k; of September 12, 2012

NRS Analysis

Bookkeeping Fees

Memo

Conjuctive Use Water Treatment Facilities Project

Engineering Fees

Bank Charges

10

Amount

148,602.93

13.485.69

(1,006.25)

(158.33)

(147,448.35)

(13,485.69)

(10.00)

Balance

$506.39

162,088.62

(162.108.62)

$486.39

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8 Capital Projects Fund Breakdown

As of9/12/2012

Net Proceeds for All Bond Issues

Checking Account

Receipts TV/DB Series 2011 - Bond Proceeds TWDB Series 2011 - Interest Earnings TCEQ Series 2012 - Bond Proceeds TCEQ Series 2012 - Interest Earnings

Disbursements T\X!DB Series 2011 - Disbursements (Attached) TCEQ Series 2012 - Disbursements (Attached)

Total Cash Balance

Balances by Account

so.oo

2,725,O()O.OO 588.99

8A85,000.00 3,240.50

(1,323,788.68) (S1,419,845.48)

S8,470,195.33

Woodforest Checking (xxx9947) S486.39

Texpool-TWDB Series 2011 (xxx0003) S148,513.93 Wells Fargo Escrow TWDB Series 2011 (xxx0600) 1,252,799.99 Texpool-TWDB Series 2011 (xxx0004) S6,696,835.38 Compass Bank Escrow TCEQ Ser. 2012 (xxx2493) S371,559.64

-------Total Cash Balance S8,470,195,33

Balances by Bond Series

Beginning Balance TV/DB Series 2011 - Bond Proceeds TCEQ Series 2012 - Bond Proceeds

Total Cash Balance

SO.OO S1 ,401 ,800.31 S7,068,395.02

S8,470,195.33

Remaining Costs/Surplus By Bond Series

T\X!DB Series 2011 - Remaining Costs TCEQ Series 2012 - Remaining Costs

Total Amount in Remaining Costs

T\VDB Series 2011 - Surplus & Interest TCEQ Series 2012 - Surplus & Interest

Total Surplus & Interest Balance

Total Remaining Costs/Surplus

11

51,401,211.32 $;7,065,154.52

8,466,365.84

588.99 3,240.50

3,829.49

58,470,195.33

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8 $2,725,000 SERIES 2011 TWDB

COST COMPARISON AS OF AUGUST 8, 2012

USE OF AcruAL ESCROWED RE~lAINING

CONSTRUCTION COSTS PROCEEDS COSTS COSTS COSTS

:\. District Item' 1. Test Well Completion & Production 850,000.00 250,000.00 624,250.00 600,000.00

2. Enb>ineering -a. Construction 14,000.00 19,250.00 (5,250.00)

b. Design 416,500.00 508,453.28 416,500.00 (91,953.28)

c. Planning 140,000.00 75,000.00 65,000.00

3. Environmental 12,500.00 12,500.00

4. Geotechnical 11,000.00 11,000.00

5. Inspection 37,663.00 18,831.25 37,663.00

6. Pennits 37,500.00 6,178.33 31,321.67

Pilot Test-Setup, Install, protocols, evaluation, report TCEQ pennit, concentrate disposal 380,000.00 138,700.00 241,300.00

7. Project Delivery Analysis 16,250.00 16,250.00

8. Test Well Implementation 70,150.00 116,075.00 (45,925.00)

9. Survey 3,750.00 3,750.00

10. Water Distribution Modeling 7,500.00 7,500.00

11. Contengency 193,187.00 4,139.57 193,187.50 189,047.43

12. Administration-District Engineer Consultation 100,000.00 26,888.50 73,111.50

13. Project Legal E"penses 250,000.00 250,000.00

Subtotal District Items $2,540,000.00 $1,144,684.68 $1,252,768.75 $1,395,315.32

TOTAL CONSTRUCTION COSTS 52,540,000.00 $1,144,684.68 Sl,252,768.75 51,395,315.32

NON·CONSTRl JCJlON rOSTS

A. Legal Fees $54,500.00 54,500.00

B. Financial Adyisor Fees 49,050.00 49,050.00

C. Interest 1. Capitalized Interest 71,500.00 71,500.00

D. Bond Issuance E"penses 9,950.00 4,054.00 5,896.00

TOTAL NON·CONSTRUCTION COSTS S185,000.00 $179,1 04.00 SO.OO S5,896.00

TOTAL BOND ISSUE REQUIREMENT 52.725,000.00 S1.323,788.68 S1,252.768.75 51,401,211.32

Interest Earnings

Total Surplus & Interest

12

VARlA.NCE (OVER)/UNDER

$0.00

50.00

SO.OO

SO.OO

SO.OO

SO.OO

SO.OO

SCWO

$0.00

$148,442.57

5588.99

$1,401,800.31

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8 $8,485,000 SERIES 2012 TCEQ

COST COMPARISON

AS OF AUGUST 8, 2012

USE OF ACJ1)AL ESCRO\l;'ED

CONSTIUlCTION COSTS PROCEEDS COSTS COSTS

A. District Items

Water Plant Imprm'ements 70.100.00 52,497.01 Water Well No.1 Rehabilitation 343,000.00 144,207.76 Water Well No.2 Rehabilitation 201,000.00 97,595.30 W\l;ITP Ele,'ated Headworks 169,400.00

\V\"rrp Permanent Digester Replacement 333,795.00

W\"ITP Outfall 244,650.00 244,650.00

W\l;ITP Life Station Replacement 164,841.00

WW Trunk Line Rehab. (Melh'ille Dri"e north of Emerson Dri,'e) 40,318.00 WWTrunk Line Rehab. Vuea south of Walden Road) 338,200.00

Wasterwater Line Rehabilitiation (Entire District) 3,887,000.00 Contingencies 530,071.00 3,074.22 Engineering 929,520.00 72.487.60 WWITP Phospate Monitoring 68,915.00

Subtotal District Items $7,320,810.00 $614,511.89 SO.OO

TOB.L CONSTRUCTION COSTS $7,320,810.00 $614,511.89 SO.OO

NON-CONSTRllCTION COSL"

Legal Fees $212,125.00 212.125.00 Fiscal Ad,~sor Fees 152,730.00 152,730.00 Capitalized Interest 282,675.00 282,675.00 Bond Discount 101,462.00 101,462.48 Bond Issuance Expenses 29,624.00 14,643.61 Bond Appliction Report 40,000.00 12,000.00 Attorney General Fee 8.485.00 8,485.00 TCEQ Bond Issuance 21,213.00 21,212.50

Contingency 315.876.00

TOTAL NON-CONSTRllCnON COSTS 51.164,190.00 $805,333.59 SO.OO

TOTAL BOND ISSUE REQUIREMENT S8.485,OOO.00 $1.419,845.48 SO.OO

REMAINING

COSTS

17,602.99 198,792.24

103,404.70 169,4{)0.00

333,795.00

164,841.00

40.318.00 338,200.00

3,887,000.00 526.996.78

857,032.40

68,915.00

S6,706,298.11

56,706,298.11

(0.48) 14,980.39

28,000.00

0.50 315,876.00

5358,856.41

S7,065,154.52

Interest Earnings

Total Surplus & Interest

13

VARLA..,'\!CE

(OVER)!UNDEJ

SO.OO

SO.OO

SO.OO

S7,065,154.52

3,240.50

S7,068,395.02

Num


Receipts

July Tax Penalties & Interest

July Tax Revenue Cleared

July Tax Rendition Penalties

Aug Tax Receipts Cleared

Total Receipts

Disbursements

Name

1026

1027

BKCHG

Montgomery Central Appraisal District

Houston Community Newspapers

Wood forest Bank

Tax Rpt J ul Overpayments - Due Taxpayer

Wire Montgomery MUD 8 Operating Fund

Total Disbursements



MCMUD8-TAX


Memo

4th Quarter 2012 Share Funding

Notice ofPubJic Hearing on Tax Rates

Bank Charges

July Tax Overpayments Reirnb. by JR 1I1oore

M&O transfer for July

14

Amount Balance

$11,739.84

598.69

1,893.01

0.45

839.95

3,332.10

(1,809.00)

(553.50)

(0.15)

(170.81)

(4.921.82)

0.455. ')8)

$7,616.66

Num Name


Receipts

MUD 8 -July Expenses/June Utilities

MUD 9 - July Expenses/June Utilities

Total Receipts

Disbursements

1389 Consolidated Communications

1390 Entergy

1391 Hays Utility

1392 Jones & Carter, Inc

1393 J\lunicipal Accounts & Consulting, LP

Bank Chg Woodforest

Total Disbursements


WOODFOREST BANK - #XXXX1519

MC MUD 8 - STP


Memo

Telephone Expense

11084 Walden Road

August 2012 Operations

TPDES Permit Renewal 2011

Monthly Bookkeeping Fees

Bank Service Chg

15

Amount

12,402.07

10.5?0.86

(31.1 0)

(4,383.13)

(38,309.05)

(863.08)

(200.00)

(1.90)

Balance

$48,010.79

22,922.93

(43.788.26)

$27,145.46

Me MUD 8 - STP

Actual vs. Budget Comparison August 20U

August 2012 Janua2' 2012 - Au~st 2012 Annual

Actual Budget Over/(Under) Actual Budget Over/(Under) Budget

Revenues

74206 IvlC MUD 8 Capital Contribution 0 47,676 (47,676) 0 381,407 (381,407) 572,110

74207 MC MUD 9 Capital Contribution 0 76,158 (76,158) 0 609,260 (609,260) 913,890

74208 MC MUD 8 Participation 21,173 16,682 4,491 120.245 133,457 (13,213) 200,186

74209 J'vlC MUD 9 Participation 18.569 14.828 3.741 108.577 118.627 (10,050) 177.940

Total Revenues 39,742 155,344 (115,602) 228,821 1,242,751 (1,013,929) 1,864,126

Expenditures

76320 Let,>al Fees 0 0 0 121 0 121 0

76321 Auditor Fee 1,200 100 1,100 1,200 800 400 1,200

76322 Engineering Fees 0 50 (50) 5,507 400 5,107 600

76324 Lab Fee 1,045 2,025 (980) 8,964 16,200 (7,236) 24,300

76330 Sludge Removal 0 3,520 (3,520) 27,066 28,160 (1,094) 42,240

76333 Bookkeeping Fees 200 250 (50) 1,975 2,000 (25) 3,000

76334 Operator Fee 2,385 2,388 (3) 19,080 19,104 (24) 28,656

76335 Maint & Repairs - Sewer 31,288 8,667 22,621 110,261 69,333 40,927 104,000

76336 Mowing - Sewer 0 200 (200) 807 1,600 (793) 2,400

76337 Security· Expenses 0 83 (83) 1,265 667 598 1,000

76339 Garbage Collection 371 340 31 2,927 2,720 207 4,080

76340 Printing & Office Supplies 0 5 (5) 19 40 (21) 60

76342 Chemicals - Sewer 3,220 2,200 1,020 18,255 17,600 655 26,400

76351 Telephone Expense 31 30 1 244 240 4 360

76352 Utilities 0 5,417 (5,417) 31,115 43,333 (12,218) 65,000

76353 Insurance & Surety· Bond 0 667 (667) 0 5,333 (5,333) 8,000

76560 Miscellaneous Expense 2 3 (1) 15 20 (5) 30

77000 Capital Repairs 0 4,167 (4,167) 0 33,333 (33,333) 50,000

77022 Ent,>1neer - Capital 0 1,400 (1,400) 0 11,200 (11,200) 16,800

77220 Capital - Projects 0 123.833 (123.833) 0 990.667 (990.667) 1.486.000

Total Expenditures 39,742 155,344 (115,602) 228,821 1,242,751 (1,013,929) 1,864,126

Excess Revenues (Expenditures) SO SO SO SO SO SO SO

16

MCMUD8- STP


January 2012 - Aug:ust 2012 (67%)

YTD Actual Annual Bud~et Over/(Under) % ofBudg:ct

Revenues

74206 MC MUD 8 Capital Contribntion 0 572,110 (572,110) 0.0%

74207 MC MUD 9 Capital Contribntion 0 913,890 (913,890) 0.0%

74208 MC 1\·1lJD 8 Participation 120,245 200,186 (79,941) 60.1%

74209 MC MUD 9 Participation 108.577 177.940 (69.3631 61.0%

Total Revenues 228,821 1,864,126 (1,635,305) 12.3%

Expendirures

76320 Legal Fees 121 0 121 None

76321 Auditor Fee 1,200 1,200 0 100.0%

76322 Enl:?J1eering Fees 5,507 600 4,907 917.9%

76324 Lab Fee 8,964 24,300 (15,336) 36.9%

76330 Sludge Removal 27,066 42,240 (15,174) 64.1%

76333 Bookkeeping Fees 1,975 3,000 (1,025) 65.8%

76334 Operator Fee 19,080 28,656 (9,576) 66.6%

76335 Maint & Repairs - Sewer 110,261 104,000 6,261 106.0%

76336 Mowing - Sewer 807 2,400 (1,593) 33.6%

76337 Security Expenses 1,265 1,000 265 126.5%

76339 Garbage Collection 2,927 4,080 (1,153) 71.7%

76340 Printing & Office Supplies 19 60 (41) 31.7%

76342 Chemicals - Sewer 18,255 26,400 (8,145) 69.1%

76351 Telephone Expense 244 360 (116) 67.7%

76352 Utilities 31,115 65,000 (33,885) 47.9%

76353 Insurance & Surety Bond 0 8,000 (8,000) 0.0%

76560 Miscellaneous Expense 15 30 (15) 48.7%

77000 Capital Repairs 0 50,000 (50,000) 0.0%

77022 Engineer - Capital 0 16,800 (16,800) 0.0%

77220 Capital - Projects 0 1.486,000 (1.486.0001 0.0%

Total Expendirures 228,821 1,864,126 (1,635,305) 12.3%

Excess Revenues (Expendimres) SO SO ($3.270.6091 None

17

Financial Institution: BANK OF HOUSTON

Total CDs, MM:

Less FDIC coverage:

Total pledged securities:

Ratio of pledged securities to investments:

Financial Institution: GREEN BANK

Total CDs, M.M:

Less FDIC coverage:



Financial Institution: mc BANK

Total CDs, MM:

Less FDIC coverage:



Financial Institution: ICON BA_NK

Total CDs, M:M:

Less FDIC coverage:



Financial Institution: TEXAS CAPITAL BANK

Total CDs, MM:

Less FDIC coverage:



Financial Institution: TEX.A.S COMMUNITY BANK

Total CDs, MM:

Less FDIC coverage:



Financial Institution: TEXPOOL

Total CDs, MM:

Less FDIC coverage:



Financial Institution: \X'ELLS FARGO TRUST

Total CDs, MJv!:

Less FDIC coverage:




Summary of Pledged Securities As of September 12, 2012

595,000.00

5250,000.00

50.00

N/A

S240,000.00

5250,000.00

SO.OO

N/A

S200,000.00

5250,000.00

50.00

N/A

5240,000.00

5250,000.00

SO.OO

N/A

5145,000.00

S250,000.00

SO.OO

N/A

S240,000.00

S250,000.00

SO.OO

N/A

58,028,853.09

SO.OO

SO.OO

N/A

51,252,799.99

SO.OO

SO.OO

N/A

18

Collateral Security Required: No

Collateral Security Ah'1:eement On File: No

Investment Polic), Received: Yes


Collateral Security Agreement On File: No

Investment Policy Received: Yes


Collateral Security i\h'1:eement On File: No



Collateral Security A.greement On File: No












Collateral Security Agreement On File: Yes


Financial Institution: WOODFOREST BANK

T oral CDs, 1"11\1, and Checking Accounts:

Less FDIC coverage:

T oral pledged securities:



Summary of Pledged Securities As of September 12, 2012

5311,976.87

5250,000.00

5512,293.58

826.58 %

19

Collateral Security Required: Yes

Collateral Security Agreement On File: Yes


Paving Agent

Debt Service Payment Due 10/01/2012

THE BANK OF NEW YORK

\,('ELLS FARGO BANK, NA


THE BANK OF NEW YORK

\,(!ELLS FARGO BANK, NA


THE BANK OF NE\V YORK

\l:'ELLS FARGO BANK, NA


District Debt Service Payments 09/01/2012 - 12/31/2013

Series

TCEQ 2012

T\XIDB 2011

TCEQ 2012

TWDB 2011

TCEQ 2012

T\XIDB 2011

Date Due Date Paid

10/01/2012

10/01/2012

Total Due 10/01/2012

04/01/2013

04/01/2013


10/01/2013

10/01/2013


District Total

20

Principal

0.00

0.00

0.00

cwo 0.00

0.00

0.00

0.00

0.00

$0.00

Interest

117,781.25

55,456.25

173,237.50

141,337.50

55,456.25

196,793.75

Total Due

117,781.25

55,456.25

173,237.50

141,337.50

55,456.25

196,793.75

141,337.50 141,337.50

55,456.25 55,456.25 -----'--"-

196,793.75 196,793.75

$566,825.00 $566,825.00

~

MONTGOMERY COUNTY MUD NO.8 A WBD Conference

2013 Winter Conference Austin, Texas

Friday, January 25th - Saturday, January 26th

DIRECTOR WINTER SUMMER REIMBURSEMENT I Name Attending Online Paid Paid

Roy McCoy NO NO NO YES

Bob Leasure NO NO NO YES

Claude Fryman NO NO NO YES

Daniel Davis YES YES NO N/A

John Tryon NO NO NO YES

**This confirms registration for the conference only. This does not confirm any lodging reservations.

** All lodging reservations are the sole responsibility of each attendee. ** A WBD would prefer that you register online, if possible at: www.awbd-tx.org

I

**Be sure to hit the bottom button REGISTER NOW; you will receive an email confirmation of registration. **Please use our billing address of: 200 River Pointe Ste 240 Conroe, TX. 77304 so the invoice is sent to us.

**All requests for an advance of funds need to be sent by email to the bookkeeper within 30 days of conferenc

JC JON E S & CAR T E R, INC.

ENGINEERS'PLANNERS'SURVEYORS 8701 New Trails Drive, Suite 200 The Woodlands, Texas 77381-4241

ROSENBERG

SAN ANTONIO

THE WOODLANDS

BRYAN/COLLEGE STATION

TEL 281 363 4039 FAX 281 363 3459

AUSTIN

DALLAS

HOUSTON

BRENHAM

Texas Board of Professional Engineers Registration No. F-439

September 7,2012

Board of Directors Montgomery County Municipal Utility District No.8 1001 McKinney, Suite 1000 Houston, Texas 77002-6418

Re: Engineering RepOlt Regular Board Meeting of September 12, 2012

Dear Directors:

The following information summarizes our activities on your behalf during the previous month:

Consent Agenda Items (Agenda Item No.3)

Review and approve Pay Estimates and Change Orders to construction contracts, as needed for the following projects - (Agenda Item No. 3.C):

a) Water Plant Improvements - No Pay Estimate. b) 2011 Water Well Nos. 1 & 2 Reworks - No Pay Estimate.

Regular Agenda Items (Additional Items from Engineer - Agenda Item No. 4.C)

1. Discuss status of Water Plant Improvements Project - (Agenda Item No. 4.C (1)):

Nunn Constructors, Inc. (the "Contractor") is complete with all items with the exception of Hydro Pneumatic Tank ("HPT") No.1 replacement at the Poe Street Water Plant. The HPT is currently scheduled for delivery on October 10th

. This HPT delivety will not delay placing the Poe Water Plant back online. When the Water Well No.1 is ready to be placed back online, the Water Plant can return to service with the remaining HPT.

2. Discuss status of Water Well Reworks Project - (Agenda Item No. 4.C (2)):

Weisinger, Inc. (the "Contractor") is nearing completion of the rework of Water Well No.1 at the Poe Street Water Plant. The Contractor is expected to be re-installing the pumping equipment during the week of September 10t

\ followed by taking the Bacterial Tests (BacT's). When we receive passing Bac-T's, the Water Well can be placed back in service, which we expect to be in approximately one (1) week.

EXHIBIT

C Smart Engineering. Smart Solutions.''' www.jonescarter.col11

J i JON E S & CAR T E R, INC .

• ~ ENGINEERS· PLANNERS· SURVEYORS Te.ras Board of Professional Engineers Registration No. F-439

Montgomery County MUD No.8 Board of Directors Page 2 September 7, 2012

3. Discuss status of WWTP Digester Replacement and Elevated Headworks Project -(Agenda Item No. 4.C (3)):

We began design of this project. We completed the topographic survey and received the geotechnical repOli. We expect to be ready to submit the preliminary drawings to the City of Conroe and MontgomelY County for initial reviews by mid-October, obtain approvals in November, and be prepared to begin adveliisement in Decembel:

4. Discuss status of Sanitary Sewer Rehabilitation Project - (Agenda Item No. 4.C (4)):

a) We are preparing the drawings for this project. We will coordinate with the Engineering Committee for a review of the drawings. We expect to be prepared to begin adveliisement in October, after the October regular Board meeting.

b) We are prepared for the District's Town Hall meeting scheduled for Thursday, September 13th at 7pm. We will be prepared to discuss the scope of the project with the residents, and the impact the project will have to the residents and their propeliy.

5. Adopt policy concerning existing facilities removal and replacement - (Agenda Item No. 4.C (5)):

At the last Board meeting, the Engineering Committee presented the draft of the District policy concerning existing obstructions removal and replacement during construction. We finalized the policy, and it is ready for the Board to adopt.

If you have questions or need any additional information, please call.

We look forward to meeting with you.

Sincerely,

~~. Peterson, PE

EMP/jta P:\PROJECTS\00352 - MCMUD 8\900 - General\012 - General\Meeting Reports\Sept 12.doc

cc: Mr. Ross Radcliffe - Johnson Radcliffe Petrov & Bobbitt PLLC Mr. Danny Wright - Hays Utility Service Ms. Katherine Turner - Municipal Accounts & Consulting, LP

A Water Utility Service Company

P.O. Box 1268, Montgomery, Texas 77356 - Ph: 936-588-1166 - Met: 936-447-1521 - Fx: 936-588-1748

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT #8 MONTHLY OPERATIONS REPORT

Occupied Occupied Sprinkler Vacant Commercial Builder Irrigation Rec/C/P Apts/Units (455) All Others

Total

1,401 19 46

5 19 50

6 lO 3

Residential Commercial Apartments Irrigation Rec/C/Pool Total

DATE 09/12/12

28,183,000 537,000

1,159,000 848,000 205,000

Plant Pumpage 27,883,600 Meter Count #9:

Plant Pumpage - Poe o Browning 27,883,600

Montgomery Co. U.D. #9 - Buckingham 22,429,000

Walden Road 9,368,000

Combined plant pumpage #8 and #9 59,680,600

Recycled Water (STP)- 659,000

Rain Water - 6,000

#1- Poe #2- Brown. #3- Buck.

Calculated Well GPM 0 1,172 1,116 Design Well GPM 1,000 1,200 1,200

Well Runtime Average hrs/day 0.0 12.9 11.7

Montgomery Co. U.D. #9 billed cons.

Combined billed cons.

Total Water Accountability

Recycled Water (CIA)- 38,000

Yacht Club Lake Water - 405,000

Montgomery County MUD #8 TAPS:

Number of Notices Mailed Cut-Off Date

Paid 8

Paid 4

Number of Actual Cut-Offs

169 08/27112

5

Year to Date 22

Montgomery County MUD #9 TAPS:

Year to Date 36

2011 Comparison 13

2011 Comparison 30

Meter Read Date Billing Date Mailing Date Due Date

#4-Walden 1,223 1,200 4.6

27,128,000

58,060,000

97.28%

08/30112 08/31112 09/27112

Water and Wastewater Operations and Management - 375 Lake Meadows Drive, Montgomery, Texas 77356

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT #8

MONTHLY OPERATIONS SUMMARY OF

WASTEWATER TREATMENT PLANT July 2012

TPDES Pennit # WQOOI1371001 Expires 06!0 1!20 12

Effluent Quality Data: Reported for July 2012

Annual Reported Permitted Average

CBOD 5 Average 4.10 mg!l 7.00 mg!l 4.49 mg!l

TSS Average 2.40 mg!l 15.00 mg!l 3.48 mg!l

CL2 Res Min 1.06 mgll 1.00 mg!l 1.37 mg!l

eL2 Res Max 3.76 mg!l 4.00 mg!l 3.43 mg!l

Ammonia Nitrogen 0.10 mg!l 2.00 mg!l 0.16 mg!l

Flow Average 0.515 mgd 0.800 mgd 0.479 mgd

Total Wastewater Treated 15,965,000 Gallons

Effluent Quality Compliant with Discharge Pennit ? NO

The plant was operated within all parameters of our pennit. No violation notices were received from any other local agency.

DATE 09/12/12

Excursion

NO

NO

NO

NO

NO

NO

I;

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT #8 MONTHLY OPERATIONS SUMMARY

DATE

09/12/12

Penalty Water Sewer Connect Deposit Garbage Grease Gar -Tax LSGWC GRP Fee Misc. Overpayments

TOTAL

BILLING & COLLECTION REPORT August 2012

08/01112

8/1112 - 8/30/12

$ (1,058.69) $ (62,785.53) $ (48,741.04) $ $ (3,877.05) $ (25,721.75) $ (60.00) $ $ (1,605.39) $ (12,146.84) $ (16,612.04) $ (1,528.28) $ (174,136.61)

~i~il~~l\ft~u1!I~«jtl~§\~Ii'J{li.i1ilfl~{!§ ~~I Connects $ 2,925.00 Deposits $ 4,050.00 Inspection Fees $ 1,960.00 Tap Fees $ 11,600.00 Write Offs $ Tum On Fee $ PCO $ 375.00 NSF $ 30.00 Regular Adj $ (7.20)

TOTAL $ 20,932.80

7124/12 - 8/25/12

Penalty $ 1,175.67 Water $ 84,891.95 Sewer $ 50,065.00 Garbage $ 26,586.00 Grease $ 60.00 LSGWC $ 2,168.32 GRP Fee $ 16,417.28 Misc. $

TOTAL $ 181,364.22

08/30/12

District Deposits on file: $36,630.00 Total Consumption: Undistributed Overpayments: $5,991.85

$ 173,735.70

$ (174,136.61)

$ 20,932.80

$ 181,364.22

$ 201,896.11

30,932,000

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT #8

CUT-OFF LIST STATUS

August 27,2012

NAME ADDRESS AMOUNT STATUS

Kym Coomler-Wyant 3950 Knollcrest Drive $42.95 Paid/On Darcey Irvine 11634 Redbird Lane $73.56 Paid/On Hector Salcedo 12114 Hawthorne Drive $65.80 Paid/On Gregory Owens 11107 Twain Drive $104.75 OFF Kellie Montgomery 11358 Glenforest Drive $156.72 OFF

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT #8 MONTHLY OPERATIONS SUMMARY

WATER SYSTEM August 2012

Total Water Pumped for Calendar Month of August

Total Permitted Withdrawal:

Pumpage Against Pennit:

Percentage of Permit Expired: Percentage of Permit Pumped:

Historical Use Permit Amount: Operating Permit approved 12116/05:

Total Permitted Pumpage Allowed:

27,158,100 Gallons

332,000,000 Gallons

113,954,100 Gallons

67% 34%

212,277,000 Gallons 119,723,000 Gallons 332,000,000 Gallons

2012 MUD 8 & MUD 9 WATER ACCOUNTABILITY AND LOST $

JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL

LOSS, 1,000 GAL 529.3 271.0 614.0 962.0 1,797.8 1,819.6 567.5 1,620.6 8181.8

% LOSS 2.61 1.39 2.91 2.71 3.99 3.38 1.32 2.72 2.63

% RECOVERY 97.39 98.61 97.09 97.29 96.01 96.62 98.68 97.28 97.37

1,000 GAL LOST 529.3 271.0 614.0 962.0 1,797.8 1,819.6 567.5 1,620.6 8,181.8

2012 LOST $ $794 $407 $921 $1,443 $2,697 $2,729 $851 $2,431 $0 $0 $0 $0 $12,273

2012 YTD LOST $ $794 $1,200 $2,121 $3,564 $6,261 $8,991 $9,842 $12,273 $12,273 $12,273 $12,273 $12,273 $12,273

2015 PROJECTED

LOST $ (WRAP) $2,117 $1,084 $2,456 $3,848 $7,191 $7,278 $2,270 $6,482 $0 $0 $0 $0 $32,727 2015 PROJECTED

YTD LOST $, $2,117 $3,201 $5,657 $9,505 $16,696 $23,975 $26,245 $32,727 $32,727 $32,727 $32,727 $32,727 $32,727

# OF INOPERABLE

METERS REPLACED 2 4 17 0 6 6 2 2 39

TOTAL # OF METERS

REPLACED 24 20 41 18 25 25 12 22 187

PI essur e System Trend Snapshots

11300

Blowning I Poe I Buekingham I Walden I

10

C/) 0..

141 40

""II 1500

1400

1300 (])

'1200"5 c

1100~

1000 CD c..

900 (/) c 800 0

CO 100 (9

600

14' 500

Montgomery County M.U.D. #9 Walden Road Well

Ground Water Levels Well Head at 240 Feet above Sea Level

r283~9-StatiCJeVel·· ./ .1328.9L..l?um~ingl~vel··1 145.0ft"~[)raWQ0wn]

on/off indicator

00.5079.00.00500

00.9455.02.02300

00.9455.02.03300

00.9455.02.10900

00.9455.02.13000

00.9455.03.07600

00.9455.03.22600

00.9455.04.20400

EXHIBIT

I ~

MONTGOMERY COUNTY DELINQUENT TAX ROLL - MUD 8 - SITUS SAME AS MAILING ADDRESS

ACKER, KENNETH W & AMY J 500 RIVER RD APT 105 MONTGOMERY, TX 77356-5549

Deferral Start: Deferral End:

WATSON, DAVID 11602 WALDEN RD MONTGOMERY, TX 77356-5568


MILLER, SCOTT J & PATRICIA J 3422 WILLOW RUN DR MONTGOMERY, TX 77356


MCCARTY, DELURA A 3406 BROOKHAVEN DR MONTGOMERY, TX 77356-5504


DEZENGOTITA, JOHN G 3518 BROOKHAVEN DR MONTGOMERY, TX 77356-5531

Deferral Start: 08/23/2006 Deferral End:

MONTOUR, KENNETH A IISI8 CRANBERRY LN MONTGOMERY, TX 77356-5474

Deferral Start: Deferrnl End:

MELTON, JAMES R & PATRICIA 11614 RED BIRD LN MONTGOMERY, TX 77356-243R


MYERS, MARGARET 3203 GLEN FOREST RD MONTGOMERY, TX 77356-5582

LAKE WALDEN COVE CONDO UTl05

Legal Acres: 0

Parcel Address: 500 RIVER RD APT 105

WALDEN 02, BLOCK 7, LOT 23

Legal Acres: 0

Parcel Address: 11606 WALDEN RD


Legal Acres: 0 Parcel Address: 3426 WILLOWRUN


Legal Acres: 0

Parcel Address: 3410 BROOKHAVEN DR

WALDEN 02, BLOCK 10, LOT 50, 51

Legal Acres: 0

Parcel Address: 3518 BROOKHAVEN DR


Legal Acres: 0

Parcel Address: 11818 CRANBERRY LN


Legal Acres: 0

Parcel Address: 11614 REDBIRD LN


Legal Acres: 0

Page No: 1 of 3

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Canse No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No: 4334 Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Tax Unit: 0408

R 2011 408

Total Levy Dlle:

R 2011 408

R 2010 408

Total Levy Dlle:

R 2011 408

Total Levy Dlle:

R 2011 408

Total Levy Dlle:

R 2011 408

R 2010 408

R 2009 408

R 2008 408

R 2007 40S

R 2006 408

Total Levy Dlle:

R 2011 40R

Total Lel:V Dlle:

R 2011 408 408

2011 Dlle: Total Lev), Dlle:

R 201 I 408 R 2010 408 R 2009 408 R 2008 408 R 2007 408

401.49

401.49

17.92 0 . .10

18.22

IG.30

16.30

34.52

34.52

611.24 644.70 602.R2 519.04 504.51

511.20

3,393.51

115.14

115.14

0.00 4.70

4,70

4.70

424.00 423.83 396.30 370.30 327.51

dtr _ detail,rep v 1.17

00.9455.04.20400

00.9455.05.16500

00.9455.05.39400

00.9455.06.01000

00.9455.06.08700

00.9455.06.16400

00.9455.06.20300


MYERS, MARGARET 3203 GLENFOREST RD MONTGOMERY, TX 77356-5582

Deferral Start: 08/2711996 Deferral End:

UllRICH, HARVEY 3034 WHITMAN DR MONTGOMERY, TX 77356-5576


SElDULE, CARL J & KARLA R 11615 TWAIN DR MONTGOMERY, TX 77356-5563

Deferral Start: 11/02/20 10 Deferral End:

FLYNN, JOHN B & JOLENE B 3222 CANTERBURY LN MONTGOMERY, TX 77356-8940


BUMGARDNER, LORRE 3223 FITZGERALD DR MONTGOMERY, TX 77356-8953


RAMIREZ, ARMANDO & ARTURO ORTIZ DE ZARATE 3259 CANTERBURY LN MONTGOMER Y, TX 77356-8943


GALVEZ, ALEJANDRO 3007 RAMBLEWOOD RD MONTGOMERY, TX 77356-8025



Legal Acres: 0

Parcel Address: 3203 GLEN FOREST DR

WALDEN 05, BLOCK 39. LOT 19

Legal Acres: 0

Parcel Address: 3034 WHITMAN DR

WALDEN 05. BLOCK 44, LOT 24, 25-A

Legal Acres: 0

Parcel Address: 11615 TWAIN DR

WALDEN 06, BLOCK 18. LOT 7

Legal Acres: 0

Parcel Address: 3222 CANTERBURY LN

WALDEN 06. BLOCK 32, LOT 39

Legal Acres: 0

Parcel Address: 3223 FITZGERALD DR


Legal Acres: 0

I'arcel Address: 3259 CANTERBURY LN


Legal Acres: 0

Parcel Address: 3007 RAMBLEWOOD RD

Page No: 2 of 3

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No: 11-02-018I2-TX

Legal Status: F

Bankrupt No:

Pay Plan No:

Bill Suppress:

Cause No:

Legal Status:

Bankrupt No:

Pay Plan No:

0408

R 2006 408 327.24

R 2005 40S 272.00

R 2004 40S 27S.15

R 2003 408 289.94

R 2002 408 289.94

R 2001 408 319.56

R 2000 408 31S.25

R 1999 408 632.19

R 1998 408 616.32

R 1997 408 583.49

Total Lel'Y Due: 5,869.02

R 2011 408 216.19

R 2010 40S 252.99

R 2009 40S 236.56

R 2008 408 221.04

R 2007 408 195.41

Total Lel'Y Due: 1,122.19

R 2011 408 707.37

R 2010 408 690.41

Total Levy Due: 1,397.78

R 2011 408 664.29

R 2010 40S 5S8.53

R 2009 408 498.16

R 2008 408 42 l.l 8

Total Levy Dlle: 2,172.16

R 2011 408 630.22

Total Levy Dlle: 630.22

R 2011 408 310.75

R 2010 408 230.24

Total Lel'Y Dlle: 540.99

R 2011 408 23.86

R 2009 408 20.99

R 2007 408 19.06

Total Levy Due: 63.91

dtr_detail.rep vI.17


00.9455.06.20800

00.9455.06.21200

00.9455.97.01900

BRILANTI, LUIS & DANIELLA NEUMANN 2903 RAMBLEWOOD RD MONTGOMERY, TX 77356-5249


PARR, DOUGLAS LEE & SHERRY LAVONNE 3215 CANTERBURY LN MONTGOMERY, TX 77356-8942


ARMATO, LISA 12500 MELVILLE DR APT 209 MONTGOMERY, TX 77356-5407


Total Number of Accounts: 17

WALDEN 06, BLOCK 47, LOT 22 Bill Suppress:

Cause No:

Legal Status:

Legal Acres: 0 Bankrupt No:

Parcel Address: 2903 RAMBLEWOOD RD Pay Plan No:

WALDEN 06, BLOCK 48, LOT 4 Bill Suppress:

Cause No:

Legal Status:


Parcel Address: 3215 CANTERBURY LN Pay Plan No:

WALDEN HARBOUR VILL CONDOSBLDG A UNIT Bill Suppress: 209 Cause No:

Legal Status:


Parcel Address: 12500 MELVILLE DR APT 2 Pay Plan No: 3964

Total Levy Balance:

Page No: 3 of 3

R 2011

Total Lei')' Due:

R 2011

R 2010

R 2009

Total Lei,)' Due:

R 2011

Total Lev)' Due:

0408

408

408 408 408

408

452.00

452.00

397.65 399.04 373.12

1,169.81

20.15

20.15

17,422.11

dtr _ detail,rep v 1.17

MONTGOMERY COUr-.rrv MUD 8 SNAP SHOT FINANCIAL REPORT

AS OF 9/12/12

REVENUES

Water

Jan-12 12,293 Feb-12 33,831 Mar-12 31,124 Apr-12 49,179

May-12 60,239

Jun-12 73,939

Jul-12 62,162 Aug-12 84,770

Sep-12 Oct-12 Nov-12 Dec-12

Totals 407,536 Budget 565,000. Difference (157,464) Prior Year 553,865

EXPENSES

Sewer Maint. Tax

49,310 260,536 49,150 53,333 49,781 25,045

49,997 9,711 49,102 8,421

49,845 10,269

49,092 2,601 49,947 3,161

396,224 373,077 398,400 528,333

(2,176) (155,256) 397,172 354,754

Total Operating Revenue

327,658 141,010 127,227 123,951

137,976 162,752 397,589

174,676

1,592,839 1,658,888

i~~8;tl;~~:,Vi~;94'9) 1,494,091

Total all District Cash Balance

Projected Operating Actual Operating

Operating Capital STP Cash Balances Cash Balance

Jan-12 Feb-12 Mar-12 Apr-12

May-12

Jun-12 Jul-12

Aug-12 Sep-12 Oct-12 Nov-12

Dec-12

Totals Budget Difference Prior Year

230,125 173,978 131,998 64,871

112,988 93,795 53,750

142,290

1,003,795 1,123,011 (119,216)

1,118,529

23,701 16,854 40,676

9,433 29,669

4,030

124,362 120,000

4,362

247,757

OPS&CAP 17,946 38,021 25,321 22,542 26,694 35,897

22,658 39,742

228,821 1,242,751

r.lii[~l 298,912

4,381,466 4,166,855

3,868,797 3,840,435

11,771,504 11,752,919 11,461,452 11,125,190

1,306,765

2012 by Budget 1,374,255 1,900,213

1,747,507 1,766,538 2,311,415 1,709,151 1,718,572 2,028,230

Note #1: Water usage is Low due to rains causing revenue in Water revenue to be below budget by $157,464. Note #2; Collections are under budget by $155,256. so far this fiscal year.

I~~~~;:i!! :.~. The revenue is under budget due to the shortage in water revenue, GRP revenue (based on water revenue) and maintenance tax revenue totaling $343,586.00 netting with the reimbursement for Capital Projects for $265,7.,6

offsetting the shortages.

2012 1,374,255 1,837,843 1,573,999 1,766,538

1,755,633 1,770,301

2,085,055 2,253,328

Note #4: Operating Expenses are under Budget due Water Repair and Maintenance being under budget by $64,233.Purchased Bulk Water and Purchased Sewer Services are lower than eX"pected by $78,434. all nerting with

the transfer to Debt Service in the amount of $29,389. ilii\\1l111lThe STP is under Budget due to Capital projects being paid from bond funds being under budget by $1,035,200.

EXHIBIT

i 1==

2011 2012

2011 2012

Montgomery County MUD 8 Revenue & Expenditure Compalrson for 2011 & 2012 As of September 12, 2012

REVENUES

400,000.00

350,000.00

300,000.00

250,000.00

200,000.00

150,000.00

100,000.00

50,000.00

339,399.00 174,505.00 117,819.00 327,658.00 141,009.60 127,227.00

EXPENDITURES ·OPERATING

250,000.00

200,000.00

150,000.00

100,000.00

50,000.00 .. ... .. . ... · .. ······ .. ··· .. ············T···

1 2 3

4

145,919.00 155,149.00 197,676.00 179,769.00 123,951.00 137,976.00 162,752.00 397,589.00

... .. ....... · .. · .................... T···

4 6 1 ___ .. __ ._ ... ___ ._ .... ___ .. _ .... _._. __ .... _ ..................... __ .................... . .............. ~ .. ~.-... ~- .... ~ .. --.---.~~ .... ~ .. - ....

158.976.00 121,315.00 183,981.00 127,551.00 141.854.00 144,538.00 129,133.00 230,124.96 173,978.13 131,997.53 64,871.00 112,988.00 93,795.00 53,750.00

• Series!

.Series2

8 9 10 11 12

183,855.00 208,630.00 176,721.00 161,614.00 118,671.00 174,676.00

II Series!

II Series2

8 9 10 11 12 · .. _~._ .. _ .. · __ .. _m_ .. _ .... .. ~~_ ..... _ ........ __ ~ .... ~.~ ... ~ .... _ .... ___ 111,181.00 148,476.00 65,534.00 103,989.00 62,533.00 142,290.00

EXHIBIT

I --->.-~_

rg MUNICIPAL ACCOUNTS,

CONSULTING, LI~

BOARD OF DIRECTORS Montgomery County Municipal Utility District No.8

Attached is the Quarterly Investment Inventory Report for the Period ending June 30, 2012.

Montgomery County Municipal

Utility District No.8 Quarterly Investment Inventory Report

Period Ending June 30, 2012

COMPLIANCE TRAINING

"HB 675 states the Investment Officer must attend at least one training seminar for (6) six hours Within twelve months of taking office and requires at least (4) four hours training within each (2) two year period thereafter.

INVESTMENT OFFICERS

Robert Leasure

CURRENT TRAINING

July 19,2012 (University of North Texas, 4 Hours)

This report and the District's investment portfolio are in compliance with the investment strategies expressed in the Districts's investment policy, and the

Katherine Turner October 1,2005 (McCall, Gibson 6 Hours) October 25, 26, 2007 (University of North Texas 10 Hours) October 25-30,2009 (fexponl Online 10 Hours) December 5, 2011 (rexpool Academy 10 Hours) Public Funds Investment Act.

Robert Leasure (Investment Officer)

u#£w&za~ Katherine Turner (Investment Officer)

~ ~-,,---------....----------,

Mark M. Burton (Investment Officer)

Mark M. Burton September 14,2002 (McCall, Gibson 6l1ours) September 13,2003 (McCall, Gibson 4 Hours) October 1,2005 (McCall, Gibson 4 Hours) October 26, 2007 (UN"!" 10 !-lours) October 26, 2009 (fexpoo\ Academy 10 Hours) November 5, 2011 (rexpool Academy 10 Hours)

200 River Pointe· Suite 240 • Conroe, Texas 77304· Phone: 936.756.1644· Fax: 936.756.1844

J EXHIBIT

f-t

Fund: Operating


Account Number: XXXXOOOI Date Opened: 05/31/2007 Current Interest Rate: 0.13'10

Date Description

04/01/2012

04/11/2012 -rrf to Checking

04/11/2012 Trf from TAX MM

04/12/2012 Tfr from CPF MM

04/12/2012 Trf to Checking

04/30/2012 Interest (Apr 2012)

05/01/2012 Trf to Fund Next Bond Pmt

05/09/2012 Trf to Fund Next Bond Pmt

05/09/2012 M&O Transfer from TAX Ckg

05/09/2012 Trf to Checking

05/11/2012 Trfto Checking

05/31/2012 Interest(May 2012)

06/13/2012 Trf to Fund Next Bond Pm!

06/13/2012 Trf from Checking

06/13/2012 Reimb from CPF-xxxOO03

06/13/2012 Reimb from CPF-xxxOO04

06/15/2012 Trfto TAX MM

06/30/2012 Interest Gune 2012)

Melhods Used For Repo%tine: Market Vsalues

Cecil ficates of Depo,~it!l: P.1ce V:1.Iue Plus J\ccrued Interest

Sec\lritie~/Di[ect Govennent Obligatiom: l\Iarket VRlue Quoted by the Seller of the Secmity ltnd Confirmed in Wotring

Puhlic Fund !m'estment Pool/lIM Accounts: Bl1llUlce:::: Book V1!.lue:::: <";urtent ~£/Uket


Summary of Money Market Funds 04/01/2012 - 06/30/2012

Totals for Account XXXX0001:


Begin Balance Cash Added

806,003.03

$806,003.03

$806,003.03

2,468.00

210,453.33

25,044.11

13,50D.00

$251,465.44

$251,465.44

Cash Withdrawn

(134,500.00)

(43,000.00)

(2,460.88)

(2,460.88)

(5,500.00)

(31,OIlIl.OO)

(2,460.88)

379.00

27,02t.ll

(2,468.00)

($196,450.53)

i$196,450.53)

Int. Earned End Balance

75.11

87.93

97.15

$260.19 $861,278.13

$260.19 $861,278.13


Financial Institution: COMPASS BANK-ESCROW

Account Number: XXXX2493 Date Opened: 05/01/2012 Current Interest Rate: 0.20%

Date Descrietion

04/01/2012

OS/IO/2012 2012 Bond Issue

05/31/2012 Interest (May 12)

06/30/2012 Interest Oun 12)


Account Number: XXXXOO03

Date

04!OI!2012

04/11/2012

04/12/2012

04/30/2012

05/09/2012

05/31/2012

06/13/2012

06/13/2012

06/30/2012

Account Number: XXXXOO04

Date

04/01/2012

05/10/2012

05/31/2012

06/13/2012

06/30/2012

Methods Used For ReporunR' Market Values

Certificates of Deposits:

Securitie~/Direct Govemlcnt Oblig.Hio!)!!:

Public Pund Im'estment Pool/MM .\ccounts:

Date Opened: 12/21/2011 Current Interest Rate: 0.130/0

Descrietion

Trf to Checking

Trf to Checking

Interest (Apr 2012)

Trf to Checking

Intecest(May 2(12)

Trf to Checking

TrE to GOF-Reimb.

Interest Oune 20l2)

Date Opened: 04/18/2012 Current Interest Rate: 0.13%

DescriEtion

Sales of 2012 TCEQ Bonds

Interest (May 12)

Trf to GOF-Reimb.

Interest Oune 2012)

race Vl1.1uc Plus Acenlcd lnterest

Market Vallie Quoted by the Seller of the Secuot}' find Confirmed in Watting

Bn.lmce ::: Book Value :.-;: Current l>.farkct




Totals for Account XXXXOO03:

Totals for Account XXXXOOO4:


0.00

371,331.00

SO.OO $371,331.00


961,011.20

$961,f)l1.20


0.00

7,343,841.52

$0.00 $7,343,841.52

Cash Withdrawn Int. Earned End Balance

+1.11

58.16

$102.27 $371,433.27

Cash Withdrawn Int. Earned End Balance

(40,000.00)

(210,453.33)

73.91

(36,000.00)

72.57

(26,374.65)

(379.00)

75.·1-1

($313,206.98) $221.92 $648,026.14

Cash Withdrawn Illt. Earned End Balance

565.8<1

(27,021.11)

840.08

($27,021.11) $1,405.92 $7,318,226.33


Financial Institution: WELLS FARGO TRUST

Account Number: XXXX0600 Date Opened: 12/21/2011 Current Interest Rate: 0.01%

Date

04/01/2012

06/30/2012

Methods U.ed For Reportine: Market Value.

Certlficlttes o(Dc:po.~its:

Secll1;tie~/Di(ect Govcnnent Obligations:

Puhlic Fund lm"estment Pool/MM .\cCOWlt.s:

Description

InterestOune 20(2)

Pn.ce Viluc Plus Accnu:d Jnkre~t

t.IA.rket Value Quoted by the Sellcr of the Security ltnd Confmned in Wotting

Bal!mct: = Book Value = Cuucn! Market






1,252,768.75

$1,252,768.75

$2,213,779.95 $7,715,172.52

Cash Withdrawn Int, Earned End Balance

HJ.31l

$\0.30 $1,252,779.05

($~40,228.09) $1,740.-11 $9,590,464.79

Fund: Tax


Account Number: XXXX0002 Date Opened: 12/21/2011 Current Interest Rate: 0.13% Date

04/01/2012

04/11/2012

04/30/2012

05/01/2012

05/09/2012

05/31/2012

06/13/2012

06/13/2012

06/15/2012

06/30/2012

Methods Used For Reportin2' .Market Values

Certificl\tes of Dl."posits:

St'C\Lriti('~/Djw::t GOycnl1cnt Ohlig;ltiotl~:

Public Fund Imoe5tment Pool/MM .\tCounts:

TrftoGOFMM

Interest (Apr 2012)

Trf to Fund Next Bond Pmt


lntcrest(May 2012)


PAF WELLS FARGO SERIES 2011

Trf from GOI' MM

Interest Gune 2012)

f":\cc Value PillS Accrued Interest

Description

Mftrket Value Quoted by the Seller of the Security Rnd Confirmed in Writting

B;t!am:e:::: Book V;\!ue:::: Current ~ra(k~t



Totals for Account XXXXOOO2:


Begin Balance Cash Added Cash Withdrawn Int. Earned End Balance

40,159.53

(2,468.00)

3.52

2,460.88

2,460.88

4.38

2,460.88

(750.00)

2,468.00

5.18

$40,159.53 $9,850.64 (f3,2IS.00) $13.08 $4f>,80S.25

$'10,159.53 $9,850.64 ($3,218.00) $13.08 $46,81J5.25

Financial Institution

Fund: Operating

Certificates of Deposit

BANK OF HOUSTON

BANK OF HOUSTON

GREENBANK

IBCBANK

IllCBANK

lBCBANK

TEXAS CAPITAL BANK

TEXAS CAPITAL BANK

Beginning Balance:

Plus Principal From Cash:

Less Principal Withdrawn:

Plus Interest Reinvested:

Fixed Balance:

MM Balance:

Total Balance:

Methods Used For Reportine: Market V:dues

Certificntes of Deposit :'I:

SecuriticlI/Dircct Govennent Oblig;1tiom:

Puhlic Fund Investment Pool/J'..llv{ .\ccounts:

Investment Issue Maturity Number ~~

XXXX0396 02/23/12 06/22/12

XXXX0396 06/22/12 11/19/12

XXXXOO67 02/21/12 07/20/12

wr FROM lEXPOOL MM XXXXOOOI

XXXX6150 01/26/12 OS/26/12 Rolled over FROM CD XXXX4293

XXXX6150 OS/26/12 10/23/12

XXXX8358 03/20/12 08/23/12

Rolled over FROM CD XXXX1613

XXXX2545 12/19/11 04/17/12

XXXX2545 04/17/12 09/14/12


$680,000.00

$0.00

$(J.OO

$0.00

$680,000.00

$861,278.13

$1,541,278.13

F,1ce Value Plu.~ Accrued Interest


Summary of Certificates of Deposit with Money Market 04/01/2012 - 06/30/2012

Beginning Principal From Principal From Principal Principal Ending Balance Cash Investment Withdrawn Reinvested Balance

95,000.00 0.00 0.00 0.00 95,000.00 0.00

0.00 0.00 95,000.00 0.00 0.00 95,000.00

240,000.00 0.00 0.00 0.00 0.00 240,000.00

100,000.00 0.00 0.00 0.00 100,000.00 0.00

0.00 0.00 100,000.00 0.00 0.00 100,000.00

100,000.00 0.00 0.00 0.00 0.00 100,000.00

145,000.00 0.00 0.00 0.00 145,000.00 0.00

0.00 0.00 145,000.00 0.00 0.00 145,000.1)0

680,000.00 0.00 340,000.00 0.00 340,1J00.OO G80,OOO.OO

Interest Earned: $406.45

Less Beg Accrued Interest: $300.85

Plus End Accnled Interest: $477.99

Fixed Interest Earned: $583.59

MM Interest Earned: $260.19

Total Interest Earned: $843.78

r..[~[kct Vlllue Quoted by the Sellcr oCthe Security And Confu:mcd in Writting

BalM.ct: = Book Value = Currt:nt r..rarket

Interest Beg. Ace. Interest Interest Interest Accrued

~ Interest ~ Reinvested Withdrawn Interest

0.50% 48.15 156.08 0.00 ISo.n8 0.011

0.15% 0.00 0.00 0.00 o.m) 312

0.25% 64.11 0.00 o.on 0.00 213.70

0.40% 71.23 131.15 0.00 ll1.lS 0.(j0

0.50% 0.00 0.00 0.00 0.00 47.95

0.50% 15.07 0.00 O.OIJ 0.00 139.73

0.25% 102.29 119.22 0.00 119.22 (l.OO

0.25% 0.00 0.00 0.00 0.00 73.-19

N/A 300.85 406.45 0.00 406.45 $477.99



Beginning Balance:


L~ss Principal Withdrawn:


Fixed Balance:

MMBalance:

Total Balance:

MeUl0ds Used For Reportin£ Market Values


Securit1c~/Direct Goveonent Obligati()ll~:

Puhlic FtU1d Investment Pool/MM Accounts:



Investment Issue Maturity Beginning Principal From Principal From Number ~ ~ Balance


$0.00

$0.00

$0.00

$0.00

$0.00

$9,590,464.79

$9,590,464.79

r~cc VruU( Plu~ Accnu:d Interest

0.00

r.,{l1rket Value Quoted by the Seller of the Secuot), Jtnd Confinned in Writting

BallUlce:::: Book Value:::: Cum~nt Market

Cash Investment

0.00 0.00

Principal Withdrawn

Principal Reinvested

0.00 0.00

Interest Earned:

Less Beg Accrued Interest:

Plus End Accrued Interest:

Fixed Interest Earned:

MM Interest Earned:

Total Interest Earned:

Ending Balance

0.00

$0.00

$0.00

$0.00

$0.00

$1,740.41

$1,740.41

Interest Rate

N!A

Beg. Ace.

~

0.00

Interest Interest ~ Reinvested

0.00 0.00

Interest Withdrawn

0.00

Accrued Interest

$0.00


Fund: Tax

Beginning Balance:




Fixed Balance:

MMBalance:

Total Balance:

Methods Used For Reportine Market Values


&curitie!l/Di[~ct GovemlC':nt Ohlig:ttiom:

Puhlic Fund In\oc:stment Pool/MM Accounts:

Montgomety County MUD No.8


Investment Number

Issue Dale

Maturity Beginning Principal From Principal From Principal Principal Ending Interest


$0.00

$0.00

$0.00

$0.00

$0.00

$46,805.25

$46,805.25

~ Balance

Face Value Plus Accnted Interest

0.00

Market Vil.lue Quoted by the SC':lkr or the Security And Confirmed in Wotting

Balance = Book Vruue = Current rdll.rket

Cash Investment

0.00 0.00

Withdrawn Reinvested Balance ~

0.00 0.00 Cl.OO N/A


Less Beg Accrued Interest: $0.00

Plus End Accrued Interest: $0.00


MM Inlerest Earned: $13.08


Beg. Ace. Interest

0.00

Interest Interest Earned Reinvested

CJ.{)O 0.00

Interest Withdrawn

0.00

Accrued Interest

$0.00


Fund: STP

Beginning Balance:




Fixed Balance:

MMBalance:

Total Balance:

MeUlods Used For Reportiul! Market V:dues

Ccrtific:ttes of Deposit~:

Scenetiell/Ditect Govennent Ohligation~:

Public Fund In\·c5tment Pool!MM ,\ccounts:

Investment Issue Maturity Number ~~

Totals for STP Fund:

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Totals for District:

Pncc Vruue Plus Accrued interest



Beginning Principal From Principal From Principal Principal Ending Balance Cash Investment Withdrawn Reinvested Balance

0.00 0.00 0.00 0.00 0.00 0.00


Less Beg Accrued Interest: $IJ.OO

Plus End Accrued Interest: $0.00


MM Interest Earned: $0.00


680,000.00 0.00 340,000.00 0.00 3-10,000.00 680,000.00

1Earket VAlue Quoted by the Seller of the Security and Con finned in Wotring

Balance Book Value'" Current Market

Interest Beg. Acc. Interest Interest Interest Accrued

~ Interest Earned Reinvested Withdrawn Interest

N/A 0.00 0.00 0.00 n.oo $0.00

N/A 300.85 406.45 0.00 ~06.45 $477.99

Financial Institution: COMPASS BANK

Security: FNMA

CUSIP: 31419ATX5

Financial Institution: WOODFOREST BANK

Security: FHLB

CUSIP: 31359MRGO

Security: FBLMe

CUSIP: 313401YQ8

Methods Used For Reporrin£ M:uket V:tlues

Certificltte~ of [xposits:

Securitie~/Di[ect Govetment Obligation!!:

Puhlic Fund In ... estmenr Pool/f>..U\{ .Accounts:

Par Value:

Date

05/31/2012

06/30/2012

Par Value:

Date

04/30/2012

05/31/2012

06/30/2012

Par Value:

Date

04/30/2012

05/31/2012

06/30/2012

P:\ce Value Plus .t\ccmed Interest

450,000.00

Value

272,001.83

259,899.90

500,000.00

Value

518,672.10

516,840.97

515,369.48

340.69

Value

310.88

313.94

309.81


Detail of Pledged Securities 04/01/2012 - 06/30/2012

Maturity Date: 02/01/2039 Pledged:



Market Vlllue Quoted by the Seller of the Security And Confimu:d in Writring

Ihlltnce = Book VnJue:::: Current Market

05/10/2012 Released: Amount Released:



CERTIFICATE OF ORDER

THE STATE OF TEXAS COUNTY OF MONTGOMERY MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

§ § §

We, the undersigned officers of the Board of Directors (the "Board") of MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8 (the "District"), hereby certify as follows:

The Board convened in regular session, open to the public, on Wednesday, September 12, 2012, at 9:00 a.m., at Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, and the roll was called of the members of the Board, to-wit:

Roy McCoy Bob Leasure Daniel L. Davis Claude D. Fryman John F. Tryon

All members of the Board were present except the following:


thus constituting a quorum. Whereupon other business, the following was transacted at such Meeting: A written

ORDER REVIEWING INVESTMENT POLICY AND INVESTMENT STRATEGIES

was duly introduced for the consideration of the Board. It was then duly moved and seconded that such Order be adopted; and after full discussion, such motion, carrying with it the adoption of such Order prevailed, carried, and became effective by the following vote:

AYES:_~ __ _ NOES:~O __ _

A true, full and correct copy of the aforesaid Order adopted at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Order has been duly recorded in the Board's minutes of such Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of such Meeting pertaining to the adoption of such Order; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board are duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of such Meeting, and that such Order would be introduced and considered for adoption at such meeting, and each of the officers and members consented, in advance, to the holding of such Meeting for such purpose; and such Meeting was open to the public and public notice of the time, place, and purpose of such Meeting was given, all as required by Chapter 551 of the Texas Government Code, and Section 49.063 of the Texas Water Code, as amended.

SIGNED this _-=1c.=2c=th-=--_ day of_-"S:..=:.eJ;:.-pt=e=l11=b=el:..---..· _,2012.

EAL) EXHIBIT

I

ORDER REVIEWING INVESTMENT POLICY AND INVESTMENT STRATEGIES

STATE OF TEXAS § § §

COUNTY OF MONTGOMERY MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

WHEREAS, Montgomery County Municipal Utility District No. 8 (the "District") is a political subdivision of the State of Texas created pursuant to Article XVI, Section 59, Texas Constitution, and operating under the provisions of Chapters 49 and 54, Texas Water Code; and

WHEREAS, as a political subdivision of the State of Texas, the District is subject to the requirements of the Texas Public Funds Investment Act (the "Act"), Texas Government Code Ann. Section 2256.001, et seq. (Vernon Supp. 1998); and

WHEREAS, the Board of Directors of the District has previously adopted an Investment Policy in compliance with the requirements of the Act; and

WHEREAS, pursuant to Section 2256.005 of the Act, the District is required to annually review its Investment Policy and Investment Strategies, and adopt a written instrument stating that such Investment Policy and Investment Strategies have been reviewed, and recording any changes thereto.

NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8, THAT:

00029001

1. The recitals contained hereinabove are found to be true and correct.

2. The District hereby reviews its Investment Policy and Investment Strategies, attached hereto as Exhibit "A. "

3. All provisions of the District's Investment Policy shall remain in full force and effect.

4. This Order shall be effective immediately upon its adoption.

* * * * * *


STATE OF TEXAS COUNTY OF MONTGOMERY MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

§ § §

We, tile undersigned officers of the Boord of Directors (the "Board") of MONTGOMERY COUNTY MUNICIPAL UTILJTY DISTRICT NO.8 (the "District"), hereby certify as follows:

The Board convened in regular session, open to the public, on Wednesday, January 11,2012, ut9:00 a.m., at Walden Yacht & Country Club, 1 310 J Melville Drive, Montgomery. Te.xas 77356, and the roll was called of the members of the Board, to-wit:

Roy McCoy Bob Leasure Daniel L. Davis Arch Payne Claude D. Fryman


All members of tile Board were present except the following: Dilr~fo'l"" fi,.~~ thus constituting a quorum. Whereupon other business, the following was transacted 1:1 such Meeting: A written

AMENDED AND RESTATED ORDER DESIGNATING INVESTMENT OFFICER AND EST ABLISHlNG RULES, POLICIES, AND CODE OF ETIDCS FOR THE INVESTMENT OF DISTRICT FUNDS AND

REVIEW OF INVESTMENTS

was duly introduced for the consideration of the Board. It was then duly moved and seconded that such Order be adopted; and after full discussion, such motion. carrying with it the adoption of slIch Order prevailed, carried, and became effective by the following vote:

A YES; _-"Y __ _ NOES; --=0'--__ _

A true, full nnd correct copy of the aforesaid Order adopted at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Order has been duly recorded in the Board's minutes of such Meeting; the above and foregoing paragraph is a true, full, nnd correct e~cerpt from the Board's minutes of such Meeting pertaining to the adoption of such Order; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of tile Board [IS indicated therein; each of the officers Bnd members of the Board nre duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of such Meeting, and that such Order would be introduced and considered for adoption at such meeting, and each of the officers and members consented, in advance, to the holding of such Meeting for such purpose; and such Meeting was open to the public and public notice of the time, place, and purpose of such Meeting was given, all as required by Chnpter 551 of the Texas Government Code and Section 49.063 of the Texas Water Code, as amended.

SIGNED tills 11th day of January, 2012.

EXHIBIT

Ii

AMENDED AND RESTATED ORDER DESIGNATING INVESTMENT OFFICER AND ESTABLISHING RULES, POLICIES, AND CODE OF ETl-UCS FOR THE INVESTMENT OF DISTRICT FUNDS AND

REVIEW OF INVESTMENTS

THE STATE OF TEXAS

COUNTY OF MONTGOwffiRY

MONTGOMERY COUNTY MUNlCIP AL UTILITY DISTRICT NO.8

§

§

§

WHEREAS, V.T.C.A., Government Code, Chapter 2256, as amended, (the "Public Flmds Investment Act") requires the goveming body of political subdivisions to adopt a written investment policy conceming the investment of its funds and funds under its control;

WHEREAS, Section 49.157 of the Texas Water Code, as amended, provides that all district deposits and investments shall be governed by Subchapter A, Chapter 2256, Government Code (public FlU1ds Investment Act); and

WHEREAS, the Board of Directors (the "Board") of Montgomery County Municipal Utility District No. 8 (the "District") has determined that in order to comply with the Public Ftmds Investment Act it is necessary to designate an investment officer and to adopt a policy relating to the investment of District funds and to set forth the requirements for the investment officer of the District.

WHEREAS, the 82m] Texas Legislature enacted House Bill 2226, effective September 1,

2011, amending Texas Government Code, Chapter 2256, (the tlpublic Funds Investment Act"), the Board detennined that it was necessary to amend the Investment Policy of the District in order to comply with the recently enacted changes in the Public Funds Investment Act.

NOW, THEREFORE BE IT ORDERED BY THE BOARD OF DIRECTORS OF MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8, THAT:

00094501 Page 1

1. DEFINITIONS

"Bond Proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by the District and reserves and flmds maintained by the DistTict for debt service pmposes.

"Book Value" means the original acquisition cost of an investment plus or minus the accmed amortization or accretion.

f'Flmds" means public funds in the custody of the District that (i) are not required by law to be deposited in the State Treasury and (ii) the District has authority to invest.

"Investment Pool" means an entity created under the Government Code to invest public nmds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are (i) preservation and safety of principal, (ii) liquidity, and (iii) yield.

"Market Value" means the current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date.

"Pooled Fund Group" means an internally created fund of the District in which one (1) or more institutional accounts of the District are invested.

"Qualified Representative" means a person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one (1) of the following:

(a) for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers;

(b) for a state or federal banlc, a savings ban1c, or a state or federal credit union, a member of the loan committee for the banlc or branch of the banle or a person authorized by corporate resolution to act on behalf of and bind the banking institution;

(c) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument 011 behalf of the investment pool; or

(d) for an investmentmcli1agement fInn registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-l et seq.) or, ifn01 subject to registration under the Act, registered with the State Securities Board, a person who is an officer or principal of the investment management finn.

"Separately Invested Asset" means an account or fund afthe District that is not invested in a Pooled Fund Group.

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II. INVESTMENT POLICY

SECTION 2.1 INVESTMENT POLICY

A. The Board ofthe District in accordance with the Public Funds Investment Act hereby establishes an Investment Policy relating to the investment of District funds. All investments shall be made with the judgment cU1d care, lmder prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management oftlle person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived.

B. Investment of funds shall be governed by the following investment objectives, in order of priority:

1. preservation and safety of principal;

2. liquidity;

3. yield;

4. tmderstanding of the suitability of the investment to the financial requirements of the District; and

5. diversification of the investment portfolio.

C. Annual Review. The Board of the District shall review annually tIns Investment Policy and Investment Strategies and shall malce any changes thereto as determined by the Board of the Dishict to be neceSSill)' and prudent for the management of District funds. The Board shall adopt a wlitten order or resolution stating that it has reviewed the Investment Policy and Investment Strategies and setting forth the changes made, if any.

SECTION 2.2 OTHER REQUIREMENTS.

A. Investment Diversification. There shaH be no defined level of investment diversification as long as all funds of the District are invested in accordance with this Invesh11ent Policy. All the authorized investments described in Article V hereof are eligible investments for District funds; provided, however, all funds shall be secured by guarantee, insurance or collateral as described in Article V hereof.

B. Yield. District funds shall be invested to obtain the maximum yield taking into consideration the preservation and safety of the principal and the liquidity of the investment in the PliOlity set forth in Section 2.1(B) hereof.

00094501 Page 3

C. Investment. Maturities. District funds shall only be invested in funds described in Article V hereof and investments shall not be invested beyond tlle period of time allowed by law for public investments for tlle particular authorized investment.

D. Quality and Capability of Investment Management. District funds shall only be invested by persons witl] training or experience in tile investment of public funds and sllch persons must comply with the requirements set forth in Article rv hereof.

E. Ma.'dmurn Dollar-Weighted Maturity Allowed. The mmdmum dollar-weighted maturity for any investment is not to exceed the ma.ximum limits established by law for public investments.

SECTION ?3 ELECTRONIC WIRE TRANSFER. Subject to written autilorization from the Board of the District, the District may use electroruc means to transfer or invest all funds collected or controlled by tlle District. Electroruc transfers shall only be made between District accounts and in tbe name of the District, unless otherwise authorized in writing by the Board of tile District.

ill. mVESTMENTSTRATEGY

SECTION 3.1 WRITTEN Il\rvESTMENT STRATEGY.

The Board oftbe District hereby adopts the Investment Strategy for each fund ofthe District described in Exhibit "A," attached hereto. The Investment Strategy describes tile investment objectives for each fund and takes into consideration tlle following priorities in order of imp or lance:

1. preservation and safety of capital;

2. liquidity;

3. yield;

4. wldersta.nding of the suitability of the investment to the financial requirements of the District; and

5. diversification of the investment portfolio.

SECTION 3.2 ANNUAL REVIEW OF mVESTMENT STRATEGY. The Board of the District shall review annually the Investment Strategy for each fund of the District and shall malce any changes thereto as deternUned by the Board to be necessruy and prudent for the management of the District's funds.

00094501 Page 4

TV. INVESTMENT OFFICER

SECTION 4.1 APPOINTMENT OF INVESTMENT OFFICER AND AUTHORlZED REPRESENTATNE FOR INVESTMENT OF FUNDS. RESPONSIBILITIES AND DUTIES. Any member ofthe Board may be appointed investment officer of the District (the "Investment Officer"). The Board hereby also appoints the person or entity serving as the District's Bookkeeper to be the Distlict's authorized representative for the investment and reinvestment of the District's funds in accordance with Section 49.1571 of the Texas Water Code. The Investment Officer and the Boold(eeper shall be responsible for the investment of District funds. All investments of District fimds sha1l be in accordance with the Investment Policy of the District. Any investment of District funds shall be made with the judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management ofthe person's own affairs but the Board retains ultimate responsibility as fiduciaries of the assets of the District.

If the Board has contracted with another investing entity to invest its funds, as authorized by the Public Funds Investment Act, the Investment Officer ofthe other investing entity is considered to be the Investment Officer of the District for such purposes. The authority hereby granted to the Investment Officer and Booldceeper to invest the District's funds is effective until rescinded by the Board, lmtil the expiration ofthe officer's term or the termination of the person's employment with the District, or if an investment management firm, until the expiration of the contract with the Disuict.

SECTION 4.2 INVESTMENT TRAINING. The Investment Officer and the Booldceeper shall attend at least one (1) investment training session from an independent source approved by the Board and containing at least six (6) hours of instruction relating to investment responsibilities within twelve (12) months after taking office or assuming duties. Except as provided below, the Investment Officer and Boold(eeper shall also attend at least four (4) hours of additional investment training relating to investment responsibilities within each tvvowyear (2) period thereafter from an independent source approved by the Board.

Training must inel ude education on investment controls, security risks, strategy risks, market risks, diversification of investment portfolio and compliance with the Public Funds Invesunent Act.

Dming January of each year, the independent source providing the investment training in which the Investment Officer and the Booldceeper participated is to report their participation during the previous calendar year to the Texas State Comptroller.

SECTION 4.3 lNTERNAL MANAGEIVfENT REPORTS. The Investment Officer with the assistance of the District's Bookkeeper shall prepare and submit quarterly to the Board ofthe District written reports of investment transactions for all funds of the District for the preceding reporting period. The quarterly reports shall be signed by the Investment Officer and the Booldceeper.

00094501 Page 5

The quarterly reports shall (i) give a complete description of each investment, including the type of investment and the institution at which the investment is made, (ii) describe in detail the invest.ment position of the District on the date ofthe report and (iii) include the following:

1. A summmy statement for each Pooled Fund Group that contains (i) the beginning market value for the reporting period; Cii) additions and changes to the market value during the period; (iii) ending market value for the period; and (iv) fully accrued interest for the repOlting period.

2. The book value and market value of each Separately Invested Asset at the end of the reporting period by the type of asset and type of fund invested.

3. The maturity date of each Separately Invested Asset that has a maturity date.

4. The account or fund or Pooled Fund Group for which each individual investment was acquired.

5. A statement to the effect that the investments for the reporting period are in compliance with the investment strategy expressed in the District1s Investment Policy.

SECTION 4.4 DISCLOSURE OF PERSONAL BUSINESS INTEREST. Ifthe Investment Officer or the Booldceeper has a personal business relationship with an entity seeking to sell an investment to the District, then the Investment Officer or the Booldceeper shall file a statement disclosing the personal business interest CDisclosure Statement") with the Board of Directors ofthe District. If the Investment Officer or the Booldceeper is related 'within the second (2nd) degree by affinity or consanguinity, as determined by Chapter 573 of the Government Code, to an individual seeking to sell all investment to the District, then the Investment Officer or Booldceeper shall file a Disclosure Statement with the Bomd of the District. For purposes ofthe District's investments, the Booldceeper or Investment Officer has a personal business relationship with a business organization if:

A. the Boo!d,:eeper or Investment Officer own ten percent (l 0%) or more oftIle voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization;

B. fLmds received by the Booldceeper or Investment Officer from the business organization exceed ten percent (l 0%) of the Booldceeper's or Investment Officer's gross income for the previous year; or

C. the Booldceeper or Investment Officer has acquired from the business organization during the previous year investments with a book value of$2,500 or more for the personal account of the Booldceeper or Investment Officer.

00094501 Page 6

The Investment Officer or the Booldceeper filing any Disclosure Statement with the Board of the District pursuant to tills Section 4.4 shall also file a copy oftlle Disclosure Statement with the Texas Etlllcs Commission.

SECTION 4.5 STANDARD OF CARE OF INVESTMENT OFFICER AND BOOKKEEPER. In determining whetller the Investment Officer or the Booldceeper has exercised prudence Witll respect to an investment decision, the Board of the District shall take into consideration (i) tlle investment of all funds, or funds Lmder tlle District's control, over which the Investment Officer and the Booldceeper have responsibility ratber than consideration as to the prudence of a single investment and (ii) whether the investment decision was consistent with the Investment Policy oftlle District.

V. AUTHORIZED INVESTMENTS

SECTION 5.1 OBLIGATIONS OF. OR GUARANTEED BY. GOVERNMENTAL ENTITIES.

O(J()9~5Dl

A. The following are authorized investments of governmental entities:

1.

2.

.,

.J.

4.

5.

6.

obligations, including letters of credit, ofllie United States or its agencies and instrLilllentalities;

direct obligations ofthe State of Texas or its agencies and instrumentalities;

collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for wlllch is guaranteed by an agency or instrumentality oftlle United States;

other obligations, the principal and interest of whlch are unconditionally guaranteed or insured by or backed by ilie full faith and credit ofthe State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faitIl and credit of the United States;

obligations of states, agencies, cOlmties, cities, and otller political subdivisions of any state rated as to investment quality by a nationally recognized investment rating finn not Jess than A or its equivalent; and

bonds issued, assumed, or guaranteed by the State of Israel.

Page 7

B. Tbe following are prohibited investments under this Section 5.1 :

1. obligations whose payment represents the coupon payments on the outstanding principal baJance of the underlying mortgage-backed security collateral and pays no principal;

2. 0 bligations whose payment represents the principal stream of cash flow fl:om the underlying mortgage-backed security collateral and bears no interest;

3. collateralized mortgage obligations that have a frnal stated maturity date of greater than ten (10) years; and

4. collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.

SECTION 5.? CERTIFICATES OF DEPOSIT. A certificate of deposit is an authorized investment if the certificate of deposit is issued by a state or national banlc domiciled in the State of Texas, a savings bank domiciled in the State of Texas or a state or federal credit tillion domiciled in the State of Texas, and is:

0009<l501

1. guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;

2. secured by obligations described in Section 5.1 (A) hereof, including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described in Section 5.1 (B); or

3. secured in any other manner and amount provided by law for deposits oftIle District.

4. In addition to the authority to invest funds in certifrcates of deposit under Subsections 1-3 of this Section, an investment in certificates of deposit made in accordance v-rith the following conditions is an authorized investment under this policy:

a) the ftmds are invested by an investing entity through:

I.

11.

a broker that bas its mmll office or a branch office in this state and is selected from a list adopted by the investing entity as required by Section 2256.025 oftlle Public Funds Investment Act or;

a depository institution that has its main office or a branch office in this state and that is selected by the investing entity;

Page 8

b) the broker or the depository institution selected by the investing entity under Subsection 4(a)(i) of this Section arranges for the deposit of the funds in celiificates of deposit in one (l) or more federally insured depository institutions, wherever located, for the account of the investing entity;

c) the full amount of the principal and accrued interest of each of t11e certificates of deposit is insured by t11e United States or an instrwnentality of the United States; and

d) the investing entity appoints the depositOly institution selected by the investing entity under Section 5.7 or an entity described by Section 2257.041(d) oftbe Act, or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3)

SECTION 5.3 REPURCHASE AGREEMENTS.

A. A fully collateralized repurchase agreement is an authOlized investment if the repurchase agreement:

1. has a defined tennination date;

2. is secured by a combination of cash and ob1igations described by Section 5.1(A)(1);

3. requires the securities being purchased by the District or cash held by the District to be pledged to the District, held in the District's nanle, and deposited at the time the invesbnent is made with the District or with a third party selected and approved by the Disbict; and

4. is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state.

B. "Repurchase Agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described in Section 5.1 (A)(1) at a market value at the time the funds are disbursed of not less than the principal aTIlount ofihe funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement.

C. The tern1 of any reverse security repurchase agreement may not exceed ninety (90) days after the date the reverse security repurcbase agreement is delivered.

D. Money received by the District under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term ofthe authorized

00094501 Page 9

investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement.

SECTION S.4 BANKERS' ACCEPTANCES. A banker's acceptance is an authorized investment if the bankers' acceptance:

1. bas a stated maturity of1\\'o hundred seventy (270) days or fewer from the date of issuance;

2. will be, in accordance with its tenns, liquidated in full at maturity;

3. is eligible for collateral borrowing from a Federal Reserve Bank; and

4. is accepted by a banlc organized and existing under the laws ofthe United States or any state, if tile short-term obligations of the banle, or a bank holding company of which the banlc is the largest subsidiary, are rated not less than A-lor P-I or an equivalent rating by at least one (1) nationally recognized credit rating agency.

SECTION 5.5 COMMERCIAL PAPER. Conmlercial paper is an authorized investment if the commercial paper:

OD09~501

1. has a stated maturity of two hundred seventy (270) days or fewer fTOm the date of issuance; and

2. is rated not less than A-lor P-l or an equivalent rating by at least (i) two (2) nationally recognized credit rating agencies or Cii) one (1) nationally recognized credit rating agency and is fully secured by an in'evocable letter of credit issued by a baole organized and existing under the laws of the United States or any state.

SECTION 5.6 MUTUAL FUNDS.

A. A no-load money market mutual fund is an authorized investment ifthe mutual fund:

1.

2.

3.

is registered with and regulated by the Securities and Excbange Commission;

provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S .C. Section 78a et seq.) or the Investment Company Act ofl940 (15 U.S.C. Section 80a-1 et seq.);

has a dollar-weighted average stated maturity of ninety (90) days or fewer; and

Page 10

4. includes in its investment objectives the maintenance of a stable net asset value of one dollar ($1.00) for each share.

B. In addition to a no-load money market mutual fWld penrutted as an authorized investment in Subsection (A), a no-load mutual fund is an authorized investment if the mutual fund:

1. is registered with the Securities and Exchange Commission;

2. has an average weighted maturity of less than two (2) years;

3. is invested exclusively in obligations approved by Article VI;

4. is continuously rated as to investment quality by at least one (1) nationally recognized investment rating fmn with a rating of not less than AAA or its equivalent; and

5. conforms to the requirements set forth in Section 2256.0 16(b) and (c) relating to the eligibility of investment pools to receive and invest nmds of investing securities.

C. The District is not authorized by this Section to:

1. invest in the aggregate more than fifteen percent (15%) of its monthly average fund balance, excluding bond proceeds and reserves and other [1mds held for debt service, in mutual funds described in Section S.6(B);

2. invest any portion of bond proceeds, reserves, and funds held for debt service, in mutual funds described in Section 5.6(B); or

3. invest its funds or funds tmder its control, jncluding bond proceeds and reserves and other funds held for debt service in anyone (1) mutual fund described in Section S.6(A) or (B) in an amoWlt that exceeds ten percent (10%) Dfthe total assets ofthe mutual nll1d.

SECTION 5.7 lNVESTMENTPOOLS.

A. The District may invest its funds and funds tmder its control through an eligible Investment Pool if the Board of the District by separate resolution authorizes investment in the pmticular pool. An eligible Investment Pool must comply with the requirements established in Section 2256.016-2256.019 of the Public Funds Investment Act. An eligible Investment Pool must invest the funds it receives in authorized investments pennitted by the Public FWlds Investment Act.

UUU9~501 Page 11

B. The Investment Officer or the District's Bookkeeper must obtain from the Investment Pool an offering circular or other similar disclosure statement that contains, at a minimum, the following information:

1. the types of investments in which money is allowed to be invested;

2. the maximum average dollar-weighted maturity allowed, based on the stated maturity date of the pool;

3. the maximum stated maturity date any investment security within the portfolio has;

4. the objectives of the pool;

5. the size oftlle pool;

6. the names ofthe members of the advisory board ofthe pool and the dates their terms expire;

7. the custodian ban1c that will safekeep the pool's assets;

8. whether the intent of the pool is to maintain a net asset value of one dollar ($] .00) and the risk of market price fluctuation;

9. whether the only source of payment is the assets of the pool at market value or whether there is any secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment;

10. the name and address ofthe independent auditor oftlle pool;

11. the requirements to be satisfied for the District to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required by the District to invest funds in and withdraw ftmds [Tom the pool; and

12. the performance history of the pool, including yield, average dollar-weighted maturities and expense ratios.

C. To maintain eligibility and to receive funds ii-om and invest funds on behalf of the District, the Investment Pool must furnish to the Investment Officer or the Booldceeper:

1. investment transaction conflrillations;

2. a monthly report that contains, at a rninirrmlll, the following information:

00094501 Page 12

(a) the types and percentage breakdown of securities in which the pool is invested;

(b) the current average dollar-weighted maturity based on the stated maturity date of the pool;

(c) the current percentage of the pool's portfolio in investments that have stated maturities of more than one (l) year;

(d) the book vallie versus the market value of the pool's portfolio, using amortized cost valuation;

(e) the size of the pool;

(t) the number of participants in the pool;

(g) the custodian banle that is safekeeping the assets of the pool;

(h) a listing of daily transaction activity ofthe District;

(i) the yield and expense ratio of the pool;

G) the portfolio managers of tile pool; and

(Ie) any changes or addenda to the offering circular.

D. The District by contract may delegate to an Investment Pool the authority to hold legal title as custodian of investments purcbased with its funds.

E. Under tlUs Section 5.7, "yield" shall be calculated in accordance with regulations goveming the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the federal Securities and Exchange ConU11ission.

F. To be eligible to receive funds from and invest funds on behalf of the District, a public fimds inveshnent pool created to fimction as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize at a one dollar ($1.00) net asset value. Ifthe ratio of the market value ofthe portfolio divided by the book value ofthe portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005.

O. To be eligible to receive funds from and invest funds on behalf of the District, a public flU1ds investment pool must have an advisory board composed:

1.

00094501

equally of participants in the pool and other persons who do not have a busil1ess relationship with the pool and are qualified to advise the pool,

Page 13

for a public :funds investment pool created under Chapter 79 I cmd managed by a state agency; or

2. of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools.

H. To maintain eligibility to receive funds from and invest funds on behalf of the Distlict, an investment pool must be continuously rated no lower than AAA or AAA-Ill or at an equivalent rating by at 1east one (1) nationally recognized rating service.

SECTION 5.8 COLLATERALHELDTOSECUREDEPOSlTS OF PUBLIC FUNDS. The following are authorized investments for collateral held to secure deposits of District funds pursuant to a Depository Pledge Agreement between the District and one (1) of its depository banks:

A. the investments described above in Section 5.1-5.7 of this Investment Policy;

B. a surety bond;

C. collateralized mortgage obligations as follows:

1. fixed-rate collateralized m0l1gage obligations that have an expected weighted average life of ten (l0) years or less and do not constitute a high risk Dl0l1gage security as that term is defined by the Texas Public Funds Collateral Act, Chapter 2257, Texas Government Code; or

2. floating-rate collateralized mortgage obligations that do not constitute a highrisk mortgage security as that teml is defined by the Texas Public Funds Collateral Act, Chapter 2257, Texas Government Code; and

D. a letter of credit issued by the Federal Home Loan Bank; and

E. such other eligible security as may be authorized from time to time by the Texas Public Funds Investment Act and the Texas Public Funds Collateral Act.

SECTION 5.9 INVESTMENT MANAGEMENT FIRMS. The Board may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-l et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its conn:ol; provided, that a contract may not be for a term longer than two (2) years, and any renewal or extension thereof must be made by the Board by order or resolution.

SECTION 5.10 IvIINlMUM RATING REQillREMENT. An investment that requires a minimum rating w1der this section does not qualify as an authorized investment during the period the investment does not have the minimum rating. The Board shall take all prudent measures that are

()OOI)45DI Page 14

consistent with this Investment Policy to liquidate an investment that does not have the minimmTI rating.

Vl. MISCELLANEOUS

SECTION 6.1 WRITTEN POLICY TO BE PRESENTED TO INVESTIYfENT COMPANY AND BOOKKEEPER.

A. The Bookkeeper shall be presented a copy of this Investment Policy and shall execute a written instrument substantially in the fOlm attached hereto as Exhibit "B" to the effect that the Boold::eeper has:

1. received and thoroughly reviewed a copy of this Investment Policy; and

2. implemented procedures and controls to comply with the Invesbnent Policy.

B. A written copy ofti1e Investment Policy shall be presented to any person offering to engage in an investment transaction with tile District or to an investment management firm tmder contract witil the District to invest or manage the District's investment portfolio. The qualified representative of tile business organization offering to engage in an investment transaction with the District shall execute a written instrument in a form acceptable to the District and the business organization attached hereto as Exhibit "C" substantially to the effect that the business organization has:

1. received and reviewed the Investment Policy of the District; and

2. aclmowledged that the business organization has implemented procedures and controls in an effort to preclude investment transactions conducted between the District and tIle organization that are not authorized by the District's Investment Policy, except to the extent that this authorization is dependent on an analysis of the makeup of the District's entire portfolio or requires an interpretation of subjective investment standards.

C. The Bookkeeper may not acquire or otherwise obtain any authorized investment described in the Dishiet's Investment Policy from a person who has not delivered to the District tile written insu'ument described in Section 6.1 (B) hereof.

D. The Booldceeper shall maintain a copy of each of the executed written statements described in Section 6.1 (A) and (B) for tile auditor.

E. At anytime that the District amends this Investment Policy, tile Baoldceeper shall present the amended Investment Policy to all persons and/or business organizations at which filllds of tile District are invested and shall obtain a new wlitteo instTument as described in Section 6.1(B) hereof.

00094501 Page 15

SECTION 6.') ANNUAL FINANCIAL AUDIT. TIle District, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the District's established investment policies.

SECTION 6.3 SELECTION OF AUTHORIZED BROKERS. The District shall rumually review, revise and adopt a list of qualified brokers that me authorized to engage in investment tmllsactions with the District.

SECTION 6.4 REPEAL OF PRIOR ORDERS RELATING TO INVESTMENT OF DISTRICT FUNDS. Any and all prior orders or resolutions relating to the investment of District funds are hereby repealed and tills Order shall supersede any such plior orders or resolutions as of the effective date hereof.

SECTION 6.S EFFECTIVE DATE. This Order shall be effective inmlediately. The President or Vice President or the Secretary or Assistant Secretruy is authorized to do all tIlings necessary and proper to evidence tile Boru'd's adoption of this Order and to cmry out the intent hereof.

00094501 Page 16

PASSED AND ADOPTED THIS lith of January, 2012.

irectors

00094501 Page 17

EXHIBIT A-1

INVESTl\1ENT STRATEGY OPERATING FUND

Investment Objective:

To purchase investments that will preserve the safety of capital, maximize liquidity, and maximize yield (in that order of priority), taking into account the District's monthly operating expenses, the timing of such expenses and the maintenance of any operating reserve that may be designated by the District's Board of Directors.

Investment Strategy:

To invest in any ofthe authorized investments listed in Article 5 of the District's Investment Policy, provided that:

Oll094501

1. For funds needed for the District's monthly operating expenses, the investment will mature no later than the date the funds will be needed to pay such operating expenses.

2. For any designated operating reserve, the investment will mature no later than one hundred eighty (180) days after the date of purchase, provided that the District's Board of Directors may authorize an investment with a longer maturity.

EXHIBIT A - 2

ThNESTMENTST~ATEGY

CAPITAL PROJECTS & TAX FUND

Investment Objective:

To purchase investments that will preserve the safely of capital, maximize liquidity, and ma.."Ximize yield (in that order of priority), taking into account the timing of planned or potential capital projects that may require the expenditure of the funds in the accmmt.

Investment Strategy:

To invest in any ofthe authorized investments listed in Article 5 of the District's Investment Policy, provided that:

UU09~501

1. For fimds needed for specific planned capital projects with alcnoWll commencement date, the Bookkeeper, with input from the District's Engineer, shall determine the investment period which shall be no later than the date the funds will be needed to fund the pay estimates for the project as they become due.

2. For any designated operating reserve, the investment will mature no later than one hundred eighty (180) days after the date of purcbase, provided that the District's Board of Directors may authorize an investment with a longer maturity.

EXHIBlTB

BOOKKEEPER'S CERTIFICATION OF RECEIPT AND REVIEW OF INVESTMENT POLICY

THE STATE OF TEXAS

COUNTY OF HARRlS

I, Katherine Turner of Municipal Accounts, Inc.! do hereby certif}1 that I have been presented a copy of the Amended and Restated Order Designating Investment Officer and Establishing Rules, Polkies, and Code of Ethics for the Investment of District Funds and Review of Investments (the "Investment Poljcy") for Montgomery County Municipal District No.8, dated January 11,2012. I have thoroughly reviewed the Investment Poljcy and acknowledge that I have implemented procedures and controls to comply with the Investment Policy.

WITNESS MY HAND THIS L day of :;Z~/t2-4-j' ,2012.

By:~~~u:,-,-,#k~~",-",-' ==--,--la-=-~ ___ _ Katherine Turner

EXHIBIT C

BANK CERTIFICATION OF RECEIPT AND REVIEW OF INVESTMENT POLICY

THE STATE OF TEXAS

COUNTY OF MONTGOMERY

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

I, the undersigned, of , do hereby certifY that I have been presented a copy of the Amended and Restated Order Designating Investment Officer and Establishing Rules, Policies, and Code of Ethics for the Investment ofFlmds and Review of Investments (the "Investment Policy") for Montgomery COlmty Municipal Utility District No. 8 (the "District"). I have thoroughly reviewed the Investment Policy and aclrnowledge that has implemented procedures and controls in an effort to preclude imprudent investment activities arising out of investment transactions conducted between the District and

WI1NESS MY I-IAi'l"D THIS ____________ , 2012.

By: _______________ _ Narne: _______________ _ Title: ________________ _

00094501


THE STATE OF TEXAS COUNTY OF MONTGOMERY MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

§ § §

We, the undersigned officers of the Board of Directors (the "Board") of MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO, 8 (the "District"), hereby certify as follows:

The Board convened in regular session, open to the public, on Wednesday, September 12, 2012, at 9:00 a.m., at Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, and the roll was called of the members of the Board, to-wit:

Roy McCoy Bob Leasure Daniel L. Davis Claude D. Fryman John F. Tryon

President Vice President Assistant Vice President Secretary Assistant Secretary -All members of the Board were present except the following: -,---,---------:----::-:c-:------:-----,----

thus constituting a quorum. Whereupon other business, the following was transacted at such Meeting: A written

ORDER AMENDING LIST OF QUALIFIED BROKERS

was duly introduced for the consideration of the Board. It was then duly moved and seconded that such Order be adopted; and after full discussion, such motion, carrying with it the adoption of such Order prevailed, carried, and became effective by the following vote:

AYES: __ 6 __ _ NOES: 0 ------

A true, full and correct copy of the aforesaid Order adopted at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Order has been duly recorded in the Board's minutes of such Meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of such Meeting pertaining to the adoption of such Order; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board are duly and sufficiently notified officially and personally, in advance, of the time, place, and purpose of such Meeting, and that such Order would be introduced and considered for adoption at such meeting, and each of the officers and members consented, in advance, to the holding of such Meeting for such purpose; and such Meeting was open to the public and public notice of the time, place, and purpose of such Meeting was given, all as required by Chapter 551 of the Texas Government Code, and Section 49.063 of the Texas Water Code, as amended.

SIGNED this _--,,-1=2t=h_ day of_-"S;:...::e+:,pt=e.=m=b=el,-' _,2012.

Secretary, Board of Directors (l

EAL) EXHIBIT

j :J

ORDER AMENDING LIST OF QUALIFIED BROKERS

STATE OF TEXAS COUNTY OF MONTGOMERY MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8

§ § §

WHEREAS, MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT

NO.8 of Montgomery County, Texas (the "District"), is a body politic and corporate and a

governmental agency of the State of Texas, operating under and governed by the provisions of

Chapters 49 and 54 of the Texas Water Code, as amended, and Section 59 of Article XVI of the

Texas Constitution; and

WHEREAS, in accordance with Section 6.3 of the Amended and Restated Order

Designating Investment Officer and Establishing Rules, Policies, and Code of Ethics for the

Investment of District Funds and Review of Investments adopted by the Board of Directors of

the District January 11, 2012, the District shall annually review, revise and adopt a list of

qualified brokers that are authorized to engage in investment transactions with the District; and

WHEREAS, on September 12, 2012, the Board determined that it was necessary to

amend the list of qualified brokers/dealers.

NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO.8, THAT:

1. The qualified brokers/dealers with whom the District may engage in investment

transactions are listed on Exhibit "A" attached hereto and incorporated herein by reference.

2. This Order shall become effective immediately upon its adoption.

00116835

LIST OF AUTHORIZED BROKERS

:\BC Bank

:\llegiance Bank

:\meg)' Bank of Texas, \:.:\.

Bank of :\merica \: .. -\.

Bank of Houston

Bank of New York- Mellon

Bank of I' ex as N.:\.

Bank of the \Vest

BBV:\ Comp,lss Bank

Capital Bank

Capital ~farkets of Dallas

Capital One

Central Bank

Chasewood Bank

Citibank N .. \.

Comerica Bank

Comerica Securities

Commercial State Bank

Community Bank

Community State Bank

Community State Bank :\ustin

Coastal Securities

Encore Bank

Enterprise Bank

First Bank of Conroe

First Bank 0 f Texas

First Bank & Trust

First Citizens Bank

First Community' Bank

First National Bank of Texas

First Texas Bank

Frost National Bank

Green Bank

Herring 0.:ational Bank

Hometown Bank, \: .. -\.

Houston Community Bank N .. \.

Icon Bank

Independent Bank

International Bank of Commerce

Inter National Bank

.1P ~forgan Chase

Legacy Texas Bank

Lone Star Bank

Lone Star Inyestment Pool

~Iemorial Cit\' Bank

Metro Bank, N .:\.

EXHIBIT

I If

:'doodv National Bank

New First National Bank

North Houston Bank

Omni Bank N .. '\..

Plains Capital Bank

Patriot B,111k

Plains State Bank

Post Oak Bank

Prosperity Bank

Regions Bank

Security State Bank

Southwest Securities

Sovereign Bank

Spirit of Texas Bank

State Bank of Texas

State Street Bank & Trust Co.

Sterling Elmk

Stifel Nicholaus

Tex Star Investment Pool

Texas Capital Bank N.:\.

Texas Class

Texas Citizens Bank

Texas Communit\, Bank

Texas Exchange Bank

Texas First Bank

Texas Independent Bank

Texas Savings Bank

Texpool/Texpool Prime

The Bank of River Oaks

The Right Bank for Texas

Tradition Bank

Treaty Oak Bank

Trustmark National Bank

l'nion Planten Bank, 1'; .. \.

Cnited Bank of el Paso Del Norte

Unity National Bank

U. S. Bank

Vista Bank

Wells Fargo Bank, N .. '\..

\X/ells Fargo Brokerage Senrices, LLC

\X!ells Fargo Trust

Westbound Bank

Whitney National Bank

\X/oodforest National Bank

AGREEMENT FOR BOOKKEEPING SERVICES

THE STATE OF TEXAS )( )(

COUNTY OF MONTGOMERY )(

TIllS AGREEMENT FOR BOOKKEEPING SERVICES (this "Agreement") is made as

of the 12th day of September 2012, by and between MONTGOMERY COUNTY MUNICIPAL

UTILITY DISTRICT NO.8, a body politic and corporate and a governmental agency of the State

of Texas, operating under the provisions of Chapter 49 and Chapter 54, Texas Water Code, and

Article XVI, Section 59 of the Constitution of the State of Texas (hereinafter called the

"District"), and MUNICIPAL ACCOUNTS & CONSULTING, L.P., a Texas Limited

Partnership, having its principal place of business at 1300 Post Oak Boulevard, Suite 1600,

Houston, Texas 77056 (hereinafter called the "Bookkeeper") in consideration of the mutual

covenants and agreements herein contained.

ARTICLE I

Bookkeeper shall render the following services to the District:

1. Establish and maintain checking accounts, journals and ledgers pertaining to the

District's Debt Service Fund, Capital Projects Fund, General Operating Fund, General

Fixed Assets Fund, and the General Long Term Debt Fund all in accordance with

generally accepted accounting procedures, the laws of the State of Texas, policies and

regulations adopted by the Board of Directors of the District, and the requirements of

the Texas Commission on Environmental Quality, and in such a manner that

excessive auditing procedures or adjustments by the auditors are not required.

2. Maintain a general ledger for the Tax Fund posted from monthly reports supplied by

the District's Tax Assessor-Collector.

3. Prepare and present for Board approval all checks, with invoices attached, drawn on

the District's Debt Service Fund, Capital Projects Fund and General Operating Fund.

EXHIBIT

11<

4. Prepare IRS Fonns W-2, W-3 and 941, and otherwise comply with the provisions of

the Internal Revenue Code, as amended from time to time, with respect to the

payment of fees of office for each member of the District's Board of Directors.

5. At each meeting of the Board of Directors (but not more often than monthly), prepare

and present a cash flow report and investment inventory report indicating all activity

within each of the above funds and the current distribution and investment of moneys

within each fund and prepare and present a profit and loss statement showing a

comparison of actual and budgeted revenues and expenditures in the General

Operating Fund.

6. Complete postings and close all journals and ledgers within forty-five (45) days after

the end of District's fiscal year.

7. Assist the District's auditor to efficiently perfonn the annual audit, including-use of

Bookkeeper's office facilities during the field audit.

8. Upon request by the District, attend one meeting of Board of Directors per month for

one hour. For meetings beginning at, or continuing beyond 4:30 PM or later, the

District shall pay the Bookkeeper $100.00 in addition to any other compensation.

There will be an additional charge of $100.00 per hour thereafter as set forth in

Article II below.

All such services shall be rendered in a professional, competent and timely manner and in

accordance with the provisions of the District's order establishing policies for investment of

District funds, as same may be amended from time to time ("Investment Policy").

ARTICLE II

As consideration for the services rendered by the Bookkeeper to the District as set forth in

Article I above, the District shall pay the Bookkeeper as follows: (1) a monthly bookkeeping fee

of $1,350.00, (2) Preparation of monthly joint facilities accounting and billing of $200.00 and (3)

the regular hourly charge for additional meetings with in one month.

2

If the District so elects in accordance with Texas Water Code Section 49.057, Mark M.

Burton or Katherine Turner or such other employee(s) of Bookkeeper as the District and

Bookkeeper may agree to in writing, shall jointly serve as the District's Investment Officer and as

such, shall comply with all terms and provisions of the Investment Policy and all applicable laws,

including but not limited to, the Public Funds Investment Act, Texas Local Government Code,

Chapter 2256, as may be amended from time to time. There will be an additional charge of

$50.00 per month for the above employee(s) of the Bookkeeper to serve as the District's

Investment Officer; provided, however, such charge shall not include the preparation of the

quarterly report of investment transactions described below.

All other services as may be requested by the District from time to time or as required by

the Investment Policy will be paid at the rate of $100.00 per hOUT for such services. Additional

services shall include, without limitation, preparation of an annual budget for the General

Operating Fund, attendance at more than one meeting per month, or attendance at a regular

meeting for more than two hOUTS when such additional time is not related to the services

described herein, preparation of the quarterly report of investment transactions as required by the

Investment Policy, preparation of tables and schedules in connection with applications for

approval of the issuance of bonds, arranging for appropriate security of District funds as required

by the Investment Policy, and preparation of Internal Revenue Service Forms 1099 and 1096.

At each District bond funding, the Bookkeeper shall supply the District's Financial

Advisor with Debt Service Fund balances; verify bond funds to be deposited into the District's

Debt Service Fund, Capital Projects Fund, and General Operating Fund; establish schedules for

anticipated payment of future construction pay estimates; invest all surplus bond proceeds; wire

and/or disburse District funds in accordance with instructions from the Board of Directors;

arrange for appropriate security of District funds as required by law and the Investment Policy;

prepare annual Debt Service Requirement Schedules in connection with the levy of taxes;

prepare outstanding debt service obligation schedules and amendments to same if the District

sells bonds as required by the attorney for the District in order to comply with the Texas Water

Code, all of which services shall be paid at the hourly rate set forth above.

3

In addition to the fees set forth above, the District shall pay the Bookkeeper for all out-of

pocket expenses reasonably and necessarily incurred by Bookkeeper in the performance of the

services described herein, including but not limited to, printing, reproduction of documents, fax,

long distance telephone calls, document storage and retention, travel expense, postage, ledger

binders, ledger paper and stationery.

ARTICLEll

The District shall instruct all contractors, vendors and service representatives of the

District to submit all bills and invoices to Bookkeeper at least five (5) days prior to any

scheduled meetings of the Board or Directors. It is understood that any bill or invoice submitted

subsequent to said five (5) day period shall be paid if possible at said meeting, but will not

necessarily be reflected on the cash flow report.

ARTICLE IV

All records and documents related to the services of the Bookkeeper to the District

hereunder shall be the District's property and shall be maintained by the Bookkeeper in

compliance with the Texas Local Government Records Act and all applicable rules, regulations,

policies and retention schedules adopted thereunder. Upon termination of this Agreement said

records and documents shall be promptly delivered by the Bookkeeper to the District or the

District's designee.

ARTICLE V

Bookkeeper shall provide the District with a public employees blanket bond, acceptable

to the District, in the amount of $3,000,000.00 within ten (10) days after the execution of this

Agreement if requested by the Board of Directors. The cost of such bond shall be borne by the

Municipal Accounts & Consulting L.P.

4

ARTICLE VI

To the extent permitted by law, the District also agrees to indemnify, defend and

hold harmless the Bookkeeper from and against any and all claims, demands, suits or

judgments, including expenses, costs and attorney's fees,as a result of Bookkeeper

following the instructions of the Board of Directors of the District.

ARTICLEVll

The term of this Agreement shall be for a period of one (1) year from the date hereof and

shall continue thereafter for successive one year periods until termination by either party by

providing thirty (30) days advance written notice to the other party.

This Agreement shall supersede all other prior agreements between the District and

Bookkeeper.

Executed in multiple copies as of the date shown above.

MONTGOMERYCOUNTY~C~AL

UTILITY DISTRICT NO.8

irectors

MUNIC~ AL ACCOUNTS & CONSULTING, L.P.

BY~ "11ark M. Burton, Managing Member The Asher Group, LLC, General Partner

5

Policy Concerning Existing Facility Removal and Replacement for

Sanitary Sewer Rehabilitation in

Montgomery County Municipal Utility District No.8 Walden on Lake Conroe, Montgomery, TX 77356

DRAFf

Montgomery COllnty Municipal Utility District No. 8 ("MCMUD 8") is proceeding with a sanitm)' sewer rehabilitation project to rehabilitate the aging sanitary sewer distribution system iJ~frastructllre. In order for MCMUD 8'.1' Contractor to make some repairs, it will require excal'atioll within the Utility Easements located generally in the resident's front yard along the street andlor in the resident's back yard along the property line. Below is MCMUD 8's Policy on the removal and replacement qf those existing facilities located within the Utility Easements. MCMUD 8 is lIot legally required to replace any existing facilities located within the Utility Easements.

Fences: If a fence exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8's Contractor will notify the resident in advance to allow the resident to secure all pets. MCMUD 8's Contractor will remove and replace those sections of fence necessary to make the repair. MCMUD 8's Contractor will reuse pieces of the existing fence, where possible. If MCMUD 8's Contractor finds the fence in such poor condition that the entire fence needs to be replaced, the Contractor will only be responsible for removal and replacement of the portion of fencing where the point repair is to occur and the resident will be notified. If the Contractor needs to leave the fence down for an extended period of time, temporary fencing will be installed. MCMUD 8's Contractor may need to remove the gate on the resident's fence to allow equipment and materials to be delivered to the location of the point repair. If the resident's gate needs to be removed, MCMUD 8's Contractor will replace the gate to existing condition and provide temporary fencing.

Pets: Residents are responsible for securing or making arrangements for all pets in backyards. MCMUD 8's Contractor will hang door hangers 48-72 hours in advance of needing access or performing work in a Resident's yard.

Grass: Grass that is disturbed during construction will be replaced with same type of grass and to pre-construction condition by MCMUD 8's Contractor. It will be the resident's responsibility to water and promote healthy growing conditions. The Contractor will not replace grass until two (2) weeks after the repair to the sanitary sewer pipe has been completed to allow for settlement. The Contractor will return after two (2) weeks and replace the grass sod. It will be the resident's responsibility to water and promote healthy growing conditions

Plants: If a plant exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to remove the shrub. The resident will be notified whether a plant is in conflict and the resident will have two (2) weeks to remove the plant. If the plant is not removed within two (2) weeks, MCMUD 8's contractor will remove the plant. Upon completion of work, MCMUD 8 will provide the resident with the oppOltunity to receive a replacement plant not to exceed five-gallons in size. It will be the resident's responsibility to water and promote healthy growing conditions.

EXHIBIT

IL

DRAFr

Gardens: If a garden exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, the garden will be removed. MCMUD 8 will not provide the resident with a replacement garden.

Shrubs: If a shrub exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to remove the shrub. The resident will be notified whether a shrub is in conflict and the resident will have two (2) weeks to remove the shrub. If the shrub is not removed within two (2) weeks, MCMUD 8's contractor will remove the shrub. Upon completion of work, MCMUD 8 will provide the resident with the opportunity to receive a replacement shrub not to exceed five-gallons in size. It will be the resident's responsibility to water and promote healthy growing conditions.

Trees: If a tree exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to remove the tree. The resident will be notified whether a tree is in conflict and the resident will have two (2) weeks to remove the tree. If the tree is not removed within two (2) weeks, MCMUD 8' s contractor will remove the tree and the resident will be responsible for all costs incurred by MCMUD 8 for the removal of the tree. Upon completion of work, MCMUD 8 will provide the resident with the opportunity to receive a replacement tree, not to exceed two-inches (2") in diameter. The tree will need to be relocated on the resident's property, away from the Utility Easement. MCMUD 8 can assist the resident in determining where the replacement tree can be installed. It will be the resident's responsibility to water and promote healthy growing conditions.

Sprinklers: If a sprinkler system exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8's Contractor will have a licensed irrigator remove and replace the sprinkler system in the area of work, to pre-construction conditions.

Decks: If a deck exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to remove the deck. This policy is for all types of decks including but not limited to decks constructed of wood, concrete, and brick. The resident will be notified whether a deck is in conflict and will have two (2) weeks to remove the deck. If the deck is not removed within two (2) weeks, MCMUD 8's Contractor will remove the deck and the resident will be responsible for all costs incurred by MCMUD 8 for the removal of the deck.

Storage Sheds: If a storage shed exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to relocate the shed. The resident will be notified whether a shed is in conflict and the resident will have two (2) weeks to relocate the shed. If the shed is not removed within two (2) weeks, MCMUD 8's Contractor will relocate the shed and its contents and the resident will be responsible for all costs incurred by MCMUD 8 for the relocation of the shed.

Sidewalks: If a sidewalk exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8's Contractor will remove and replace the sidewalk to pre-construction condition or better.

Driveways: If a driveway exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8's Contractor will remove and replace the driveway to pre-construction condition or better.

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DRAFr

Ponds: If a pond exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to remove the pond. The resident will be notified whether a pond is in conflict and will have two (2) weeks to remove the pond. If the pond is not removed within two (2) weeks, MCMUD 8's Contractor will remove the pond and the resident will be responsible for all costs incurred by MCMUD 8 for the removal of the ponel. MCMUD 8 will not provide the resident with a replacement of pond.

Pools: If a pool exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8 will use best efforts to not damage the pool. If MCMUD 8's Contractor cannot make the point repair without damaging the pool, it will be the resident's responsibility to remove the area of the pool that is within the utility easement. The resident will be notified whether a pool is in conflict and the resident will have two (2) weeks to remove the pool. If the pool is not removed within two (2) weeks, MCMUD 8's Contractor will remove the pool and the resident will be responsible for all costs incUlTed by MCMUD 8 for the removal of the pool.

Improper Tie-Ins: If MCMUD 8 identifies improper tie-ins including but not limited to roof drains or yard drains tied into the District's sanitary sewer system, the Contractor will remove the tie-in and repair the sanitary sewer line. The resident will be responsible for all costs incurred by MCMUD 8 for the repairs to the sanitary sewer line at point of improper tie-in. Roof drains and yard drains disconnected are the direct responsibility of the resident to re-direct into the street or approved storm drainage system.

Electrical Generators: If an electrical generator or similar device exists within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, it will be the resident's responsibility to relocate the generator. The resident will be notified whether the generator is in conflict and the resident will have two (2) weeks to relocate it. If the generator is not removed within two (2) weeks, MCMUD 8's Contractor will relocate the generator and the resident will be responsible for all costs incurred by MCMUD 8 for the relocation of the generator and accessories.

Bulkheads: If MUMCD 8 identifies a bulkhead or similar structure within a Utility Easement, in an area where MCMUD 8's Contractor needs to make a point repair, MCMUD 8 will use best efforts to not damage the structure. If MCMUD 8 Contractor cannot make the point repair without damaging the structure, it will be the resident's responsibility to remove the structure within a two (2) weeks period. If the bulkhead or the portion of the bulkhead is not removed by the resident, MCMUD 8 Contractor will remove the structure and the resident will be responsible for all costs incurred by MCMUD 8 for the removal and replacement of the structure.

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