
=== PDF PAGE 1 ===
Annual F inancial Repor  t
For the F iscal Year Ended August 31, 2025
(With Independent Auditor’s Repor t)

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  Central Texas Turnpike  System
  An Enterprise Fund of
  the Texas  Department  of Transportation



  Annual Financial Report
  For the Fiscal Year Ended
  August 31, 2025






  Prepared by:
  Financial Management Division of the Texas Department of Transportation

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  CENTRAL TEXAS TURNPIKE SYSTEM
  Annual Financial Report
  For the Fiscal Year Ended August 31, 2025


  TABLE OF CONTENTS

INTRODUCTORY SECTION (Unaudited)
  Letter of Transmittal ����������������������������������������������������������������������������������������������������������  1
  Organizational Chart ����������������������������������������������������������������������������������������������������������  3
  Commission and Key Personnel ���������������������������������������������������������������������������������������������  4

FINANCIAL SECTION
  Independent Auditor ’s  Report �����������������������������������������������������������������������������������������������  8
  Management’s Discussion and Analysis (Unaudited) ������������������������������������������������������������������  12
  Basic Financial Statements:
  Statement of Net Position �����������������������������������������������������������������������������������������������  18
  Statement of Revenues, Expenses and Changes in Net Position ���������������������������������������������������  19
  Statement of Cash Flows ������������������������������������������������������������������������������������������������  20
  Notes to Financial Statements ������������������������������������������������������������������������������������������  23

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  Section One
Introductory Section

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  125 E 11th St | Austin, Texas 78701
  512.463.8588
  txdot.gov

  Decemb er 1 2, 2025

  To: The Citizens of the State of Texas and the Creditors of the Central Texas Turnpike System

  The audited annual financial statements of the Central Texas Turnpike System (CTTS) for the year ended Aug.
  3 1,  2 025, ar e enclos ed in  acco rd anc e with the A men ded and R estated In de ntu re of  Tru st dated A ug us t 1,  2024
  as su ppl emen ted (In den ture). Th e I nd en tur  e r equ i res th e prep aration and s ub miss i on of audi ted an nu al f in an cial
  statements.

  An external audit firm, CliftonLarsonAllen, LLP (CLA), performed an independent audit, in accordance with
  generally accepted auditing standards in the United States of America (GAAS)
  s tatemen ts f or the yea r e nd ed Au g. 3 1, 20 25. Th e audi t opin ion is pr es en ted i n thi s report pr eceding the fi n anci al
  statements. This report was prepared by the accounting staff in the Financial Management Division of the Texas
  provide reasonable assurance
  regarding the safeguarding of assets against loss from unauthorized use or disposal and the reliability of
  financial records for preparing financial statements . The concept of reas onable ass urance recognizes that the
  c os t of  a c on trol  sh ould  n o t exceed  the res u lti ng  ben ef it.

  Management is responsible for the accuracy of the data in this report as well as for the completeness and
  fairness of the presentation.  Consequently, management assumes  full res pons ib ility for the completeness  and
  f ai rness of  all o f the i nf or mati on pres ent ed  i n the f inanc ial statements. To th e best of  my knowl edge and beli ef,
  the financial statements are accurate in all material respects , are reported in a manner that pres ents fairly the
  financial position and results of operations of CTTS and provide discl osures that enable the reader to understand



  the financial acti vities of TxDO T. We encourage readers to consider the information in this letter of transmittal in
  c onj unc tion  wi th  th e  MD&A.

  Profile of the Government


  the state of Texas. TxDOT is managed by an executive director and is governed by the five -member Texas
  Trans portatio n Com missi on. A l l memb ers  of the Co mmiss io n are appoi nted b y th e Governor. The Co mmiss ion is
  authorized to issue general obligation and revenue bonds per statutory and constitutional provisions.

  Texas Transportation Code grants the Commission the authority to study, plan, design, construct, finance,
  operate and maintain turnpikes in all 254 counties of the state as a part of the state's highway system. The
  Commission can issue turnpike revenue bonds to pay all or a part of the cost of a turnpike project, to enter into
  comprehensive development agreements to execute projects and to acquire right of way through quick -take
  procedures. Such revenue bonds were issued to fund a portion of the costs of co nstructing the CTTS roadways.
  Budgetary Controls

  Annual budgets are approved by the Texas Transportation Commission in accordance with the indenture and
  reviewed by the general engineering consultants. These budgets are entered and maintained in the statewide
  ac counting system as c ollec ted revenues or re imburs ements. Controls are maintained at the agenc y level, with
  additional control at the fund and appropriation level to ensure expenditures do not exceed collected amounts.



  TxDOT and the Trustee are responsible for ensuring that funds maintain the proper minimum balances as set
  forth in the Indenture and for investing in securities required to meet liquidity requirements. The criteria for
  suitable  investments for  each fund type are detailed in the  Commission's investment strategies.









Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 1

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  All monies in the revenue fund, debt service funds, rate stabilization fund and construction fund  capital
  c ontr ib uti on s accou n t are in ves te d i n  mon ey mar ket f un ds, g over nmen t s ec uri ties  and  inv es tmen t po ols  th at are
  ves tment poli cy.

  The debt s ervice res erve fund is invested in an investment pool and a repurchas e agreement collateralized by
  U.S. Treasury and Agency Securities.
  Acknowledgements

  The preparation of the report requires the efforts of individuals throughout TxDOT, including the dedicated efforts
  of the management and staff of the TxDOT's Financial Reporting Section and other sections of the Financial
  Management Division, and the Project Finance and Toll Operations Division.  I sincerely appreciate the efforts of
  all these individuals who continue to help make TxDOT a leader in quality financial reporting.

  Sincerely,

















































Page 2  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Texas Department of Transportation
  Organization Chart as of August 31, 2025








  Compliance  Transportation
  Durkop  Commission
  Chief Audit & Compliance
  Officer
  Townsend
  Internal Audit
  Otto  Executive Director
  M. Williams





  Chief of Staff  General Counsel
  Griss  Graham
  Civil Rights
  Deputy Executive Director  Deputy Executive Director  Bryant
  Planning & Administration  Program Delivery
  Hendrickson  Barth  Occupational
  Safety
  S. Salazar



  Chief Engineer
  C. Johnson









  Director  Director Strategy  Government  Chief  Director Planning  Director  Director Project  Chief Financial  Chief Information
  Communications  & Innovation  Affairs  Administrative  & Modal  Director District  Engineering &  Development  Officer  Officer
  & Public Affairs  Anderson  Thomas  Officer  Programs  Operations  Safety Operations  Bur  S. Stewart  Selissen
  Garcia  Davis  Mays  Vacant  Butler



  Research &  Contract Services  Alternative  Financial  Information
  Technology  Aviation  Abilene  Bryan  Houston  Pharr  Bridge  Delivery  Management  Technology
  Implementation  K. Stewart  Harmon  Dearing  Bohne  Albritton  Alvarez  Farris  Selissen
  Communications  Pete  Snider  Landry
  Hodges
  Fleet Operations  Maritime  San Angelo  Construction  Design
  Strategic Planning  Kalhagen  Amarillo  Childress  Laredo  Pike  Project Finance,
  Travel  Kemp  Singleton  B. Johnson  Lankford  E. Gonzalez  Cowen  Milligan  Debt & Strategic

  Information  Contracts
  Henderson  Human Resources  Public  San Antonio  Maintenance  Environmental  Asher
  Young  Transportation  Atlanta  Corpus Christi  Lubbock  Affairs
  Gleason  *Hale  Walsh  Warren  Benavidez  Stevenson  Booher


  Procurement  Rail  Tyler  Materials & Tests  Professional
  Wood  *Davis  Austin  Dallas  Lufkin  Webb  Barborak  Engineering Proc.
  Ferguson  Clemens  Morris  Services
  Rodin
  Support Services  Transportation  Waco  Traffic Safety
  Sweat  Planning &  Beaumont  El Paso  Odessa  Swiatek  Chacon
  Programming  Right of Way
  H. Gonzalez  M. Gonzalez  Trevino  Lykins  Madsen

  Wichita Falls
  Brownwood  Fort Worth  Paris  Rohmer  Transportation
  Cedillo  D. Salazar  Paramanantham  Programs

  Yoakum  C. Williams

  Vinklarek
  *Interim








Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 3

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  TEXAS DEPARTMENT OF TRANSPORTATION
  TEXAS TRANSPORTATION COMMISSION
  as of August 31, 2025


















  W.Alvin New  Robert C. Vaughn
  Acting Chairman  Commissioner
  San Angelo  Dallas

















  Alejandro “Alex” G.  Steven D. Alvis
  Meade III  Commissioner
  Commissioner  Houston
  Mission















Page 4  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  TEXAS DEPARTMENT OF TRANSPORTATION
  TxDOT ADMINISTRATION
  as of August 31, 2025


  The following is a list of administrators who oversee the Texas Department of Transportation. All TxDOT districts,
  divisions and offices report to a member of the administration, headquartered in Austin.










  Marc Williams  Brandye  Brian Barth  Jeffery Davis  Parsons  Stephen
  Executive Director  Hendrickson  Deputy Executive  Chief  Townsend  Stewart
  Deputy Executive  Director for  Administrative  Chief Audit and  Chief Financial
  Director for  Program Delivery  Officer  Compliance  Officer
  Planning and  Officer
  Administration











  Anh Selissen  Mary Anne  Alejandro  Carl Johnson  Jessica Butler  Trent Thomas
  Chief Information  Griss  Garcia  Chief Engineer  Director of  Director of
  Officer  Chief of Staff  Director of  Engineering and  Government
  Communications  Safety Operations  Affairs
  and Public Affairs











  Caroline Mays  Mohamed  Darran  Jeff Graham
  Director of  “Mo” Bur  Anderson  General Counsel
  Planning and  Director of  Director Strategy
  Modal Programs  Project  and Innovation
  Development







  As of August 31, 2025






Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 5

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Page 6  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Section Two
  Financial Section






































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 7

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  CliftonLarsonAllen LLP
  CLAconnect.com





  INDEPENDENT AUDITORS’ REPORT



  Members of the Texas Transportation Commission
  State of Texas


  Report on the Audit of the Financial Statements
  Opinion
  We have audited the accompanying financial statements of the Central Texas Turnpike System
  (System), an enterprise fund of the Texas Department of Transportation (TxDOT), an agency of the
  State of Texas, as of and for the year ended August 31, 2025, and the related notes to the financial
  statements, as listed in the table of contents.

  In our opinion, the financial statements referred to above present fairly, in all material respects, the
  financial position of the System, of TxDOT, as of August 31, 2025, and the changes in financial position
  and its cash flows for the year then ended in accordance with accounting principles generally accepted
  in the United States of America.

  Basis for Opinion
  We conducted our audit in accordance with auditing standards generally accepted in the United States
  of America (GAAS) and the standards applicable to financial audits contained in  Government Auditing
  Standards, issued by the Comptroller General of the United States. Our responsibilities under those
  standards are further described in the Auditors’ Responsibilities for the Audit of the Financial
  Statements section of our report. We are required to be independent of the State of Texas and to meet
  our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our
  audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
  basis for our audit opinion.

  Emphasis of Matter
  As discussed in Note 1, the financial statements present only the System and do not purport to, and do
  not, present fairly the financial position of the TxDOT, as of August 31, 2025, and the changes in its
  financial position, or where applicable, its cash flows for the year then ended in accordance with
  accounting principles generally accepted in the United States of America. Our opinion is not modified
  with respect to this matter.

  Responsibilities of Management for the Financial Statements
  Management is responsible for the preparation and fair presentation of the financial statements in
  accordance with accounting principles generally accepted in the United States of America, and for the
  design, implementation, and maintenance of internal control relevant to the preparation and fair
  presentation of financial statements that are free from material misstatement, whether due to fraud or
  error.




  CLA (CliftonLarsonAllen LLP) is an independent   network member of CLA Global. See CLAglobal.com/disclaimer .






Page 8  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Members of the Texas Transportation Commission
  State of Texas





  Auditors’ Responsibilities for the Audit of the Financial Statements
  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
  are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
  includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance
  and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
  Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
  material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
  involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  Misstatements are considered material if there is a substantial likelihood that, individually or in the
  aggregate, they would influence the judgment made by a reasonable user based on the financial
  statements.

  In performing an audit in accordance with GAAS and Government Auditing Standards, we:

  •  Exercise professional judgment and maintain professional skepticism throughout the audit.
  •  Identify and assess the risks of material misstatement of the financial statements, whether due
  to fraud or error, and design and perform audit procedures responsive to those risks. Such
  procedures include examining, on a test basis, evidence regarding the amounts and disclosures
  in the financial statements.
  •  Obtain an understanding of internal control relevant to the audit in order to design audit
  procedures that are appropriate in the circumstances, but not for the purpose of expressing an
  opinion on the effectiveness of the TxDOT’s internal control. Accordingly, no such opinion is
  expressed.
  •  Evaluate the appropriateness of accounting policies used and the reasonableness of significant
  accounting estimates made by management, as well as evaluate the overall presentation of the
  financial statements.

  We are required to communicate with those charged with governance regarding, among other matters,
  the planned scope and timing of the audit, significant audit findings, and certain internal control related
  matters that we identified during the audit.

  Required Supplementary Information
  Accounting principles generally accepted in the United States of America require that the
  Management’s Discussion and Analysis be presented to supplement the financial statements. Such
  information is the responsibility of management and, although not a part of the financial statements, is
  required by the Governmental Accounting Standards Board who considers it to be an essential part of
  financial reporting for placing the financial statements in an appropriate operational, economic, or
  historical context. We have applied certain limited procedures to the required supplementary
  information in accordance with GAAS, which consisted of inquiries of management about the methods
  of preparing the information and comparing the information for consistency with management’s
  responses to our inquiries, the financial statements, and other knowledge we obtained during our audit
  of the financial statements. We do not express an opinion or provide any assurance on the information
  because the limited procedures do not provide us with sufficient evidence to express an opinion or
  provide any assurance.










Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 9

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  Members of the Texas Transportation Commission
  State of Texas





  Other Information
  Management is responsible for the other information included in the annual report. The other
  information comprises the introductory section but does not include the financial statements and our
  auditors’ report thereon. Our opinion on the financial statements does not cover the other information,
  and we do not express an opinion or any form of assurance thereon.

  In connection with our audit of the financial statements, our responsibility is to read the other
  information and consider whether a material inconsistency exists between the other information and the
  financial statements, or the other information otherwise appears to be materially misstated. If, based on
  the work performed, we conclude that an uncorrected material misstatement of the other information
  exists, we are required to describe it in our report.

  Other Reporting Required by Government Auditing Standards
  In accordance with Government Auditing Standards, we have also issued our report dated
  December 12, 2025, on our consideration of the System’s internal control over financial reporting and
  on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
  agreements and other matters. The purpose of that report is solely to describe the scope of our testing
  of internal control over financial reporting and compliance and the results of that testing, and not to
  provide an opinion on the effectiveness of TxDOT’s internal control over financial reporting or on
  compliance. That report is an integral part of an audit performed in accordance with  Government
  Auditing Standards in considering TxDOT’s internal control over financial reporting and  compliance.





  CliftonLarsonAllen LLP

  San Antonio, Texas
  December 12, 2025



























Page 10  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Section Two  (Continued)
  Management’s Discussion & Analysis
  (Unaudited)



































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 11

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  Management’s Discussion and Analysis

  As management of the Texas Department of Transportation (TxDOT), we offer readers of the Central Texas Turnpike System’s
(CTTS) financial statements this narrative overview and analysis of its financial activities for the year ended Aug. 31, 2025, with selected
comparative information for the year ended Aug. 31, 2024. The information presented should be read in conjunction with our letter of
transmittal, the financial statements and the accompanying notes to the financial statements.

Highlights

  To help improve back�office operational efficiency and enhance customer service, TxDOT and Harris County Toll Road Authority
(HCTRA) entered into a Back Office System and Tolling Services Agreement on November 9, 2024. Under this agreement, HCTRA
began providing all customer service, customer account maintenance, transponder supply, toll collection, clearing house, back office, toll
enforcement and interoperability functions and services for CTTS and other toll systems. During fiscal 2025, CTTS generated $311.5
million in toll revenues (net of allowance), an increase of $15.6 million or 5.3 percent over fiscal 2024. CTTS roadways recorded 212.1
million transactions in fiscal 2025, an increase of 4.5 percent over fiscal 2024.

  CTTS’ indenture requires certain operating, maintenance, and reserve maintenance funds to be held separate and apart from its other
funds and accounts. As of Aug. 31, 2025, these funds held reserves of $182.3 million. These balances will enable CTTS to pay directly
for budgeted expenses throughout the coming year.

  The assets and deferred outflows of CTTS exceeded its liabilities and deferred inflows by $279.1 million as of Aug. 31, 2025, an
increase of $33.0 million or 13.4 percent from fiscal 2024. The increase mainly reflects a decrease in total liabilities of $164.2 million,
offset by a decrease in total capital assets of $134.3 million.

Overview of the Financial Statements

  The annual financial report consists of two parts: management’s discussion and analysis (this section) and the basic financial statements
with their accompanying notes.

Fund Financial Statements

  A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. TxDOT, like other states and local governments, uses fund accounting to ensure and demonstrate compliance with finance�
related legal requirements. Proprietary funds are used to account for a government’s business�type activities. The activities related to
CTTS are accounted for in an enterprise fund, which is a type of proprietary fund used to report activities in which a fee is charged to
external users for goods and services.






























Page 12  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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Financial Analysis

  The overall financial position and operations of CTTS for the past two years is summarized as follows.

  Statement of Net Position
  Aug ust 31, 2025 and 2024 (A mou nts in T housands)
  2025  2024
  A S SETS
  Assets Other Than Capital Assets  $ 719,203  $ 721,449
  Capital Assets  2,354,716  2,489,043
  Total Assets  3,073,919  3,210,492
  DEFER R ED OUTFLOWS OF R ESOU RCES  10,441  11,880

  LIABILITIES
  Cu r rent Liabilit ies  139,137  202,753
  Noncu r rent Liabilit ies  2,569,258  2,669,838
  Tot al Liabilit ies  2,708,395  2,872,591
  DEFER R ED I NFLOWS OF R ESOU RCES  96,845  103,706

  N ET POSI T ION
  Net Invest ment in Capital Assets  388,856  396,594
  Rest r icted for Debt Ser vice  171,989  163,512
  Rest ricted for Const r uction  150,836
  Rest r icted for Operations and Maintenance  81,758  115,291
  Unrestricted  (514,319)  (429,322)
  Total Net Position  $ 279,120  $ 246,075


  Changes in Net Position
  For the Fiscal Years Ended Aug ust 31, 2025 and 2024 (A mou nts in T housands)
  2025  2024
  OPER ATI NG R EV ENU ES
  Operating Revenues  $ 337,636  $ 372,071
  Total Operating Revenue  337,636  372,071

  OPER  AT I NG EX PENSES
  Operating Expenses  244,833  285,365
  Total Operating Expenses  244,833  285,365


  Operating Income  92,803  86,706
  Total Nonoperating (Expenses)  (74,244)  (71,028)
  Income before Capital Cont r ibution and Transfer  18,559  15,678


  Tr  a  n s f e r  s  I  n  14,486  13,022
  Total Capital Cont r ibution and Transfers  14,486  13,022
  Change in Net Position  33,045  28,700


  Net Position – Begin ning  246,075  217,375
  Net Position – Ending  $ 279,120  $ 246,075




Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 13

=== PDF PAGE 22 ===
  Total operating revenues for fiscal 2025 were $337.6 million, a decrease of $34.4 million or 9.3 percent over fiscal 2024. Total
operating expenses for fiscal 2025 were $244.8 million, a decrease of $40.5 million or 14.2 percent over fiscal 2024. The decrease in
operating revenues and expenses primarily due to the replacement of the previous back�office system by HCTRA.

  In fiscal 2025, total nonoperating expenses exceeded nonoperating revenues by $74.2 million. The largest nonoperating expense was
interest expense of $118.9 million, which comprised 95.5 percent of total nonoperating expenses.

  Capital Assets  and  Debt Administration

Capital Assets

  As of Aug. 31, 2025, CTTS had approximately $2.4 billion in net capital assets.

  Capital Assets-Net of Depreciation and Amortization
  August 31, 2025 and 2024 (Amounts in Thousands)
  2025  2024
  Land  $ 668,525  $ 668,525
  Constr uction in Progress  11,493  19,318
  Land Use R ights  19,466  19,466
  Sof t wa re  14,894
  Inf rast r uct u re�Roadways and Br idges  1,653,591  1,703,345
  Buildi ngs  1,354  1,715
  Right�to�Use Subscriptions  287  61,780
  Total Capital Assets  $ 2,354,716  $ 2,489,043



  The decrease in net capital assets of $134.3 million  mainly reflects the reduction of $51.2 million of a right�to�use subscription
and the loss of $5.3 million on disposal of the back�office system, in addition to annual depreciation and amortization of $77.8 million.

  Debt Administration

  The Commission has issued revenue bonds backed by the pledged revenues and restricted assets specified in the bond resolutions.
As of Aug. 31, 2025, CTTS had approximately $2.7 billion of outstanding revenue bond debt. See Notes 4 & 5 for more information.

  Outstanding Debt Obligations
  August 31, 2025 and 2024 (Amounts in Thousands)
  2025  2024
  Revenue Bonds Payable  $ 2,662,859  $ 2,715,552
  Total Outstanding Debt  $ 2,662,859  $ 2,715,552
























Page 14  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Bond Credit Ratings

  The outstanding bonds of CTTS were rated by each of the three major Nationally Recognized Statistical Rating Organizations. As
 of Aug. 31, 2025, the CTTS bonds carried the following ratings:

  CTTS Credit Ratings as of August 31, 2025
  (A mou nts in Thousands)

  Bond Descript ion  Net Outstanding  M o o d y’s  S & P  Fitch
  First Tier Bonds Ser ies 2002�A
  Non�Callable Capital Appreciation Bonds  $ 380,968  A2  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2020�A  208,642  A2  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2020�C  279,305  A2  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2024�A  428,992  A2  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2024�B  241,303  A2  A  A+
  Second Tier Revenue Ref u nding Bonds, Ser ies 2024�C  1,123,649  A3  A�  A�
  To  t  a  l  $ 2,662,859


  An explanation of the significance of each rating may be obtained from the company furnishing the rating. The ratings reflect only
the views of such companies at the time such ratings are given, and the Commission makes no representation as to the appropriateness of
the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward
or withdrawn entirely by such companies if, in the judgment of such companies, circumstances so warrant.

Requests for Information

  This financial report is designed to provide a general overview of CTTS’ finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the TxDOT Financial Management Division
at the following address:

  Texas Department of Transportation
  Financial Management Division � Accounting Section
  125 East 11th Street
  Austin, Texas 78701�2483





























Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 15

=== PDF PAGE 24 ===
Page 16  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

=== PDF PAGE 25 ===
  Section Two  (Continued)
  Basic Financial Statements






































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 17

=== PDF PAGE 26 ===
  Central Texas Turnpike System
  Statement of Net Position
  August 31, 2025 (Amounts in Thousands)

  A S SETS
  Cur rent Assets:
  Cash and Cash Equivalents:
  Cash and Cash Equivalents  $ 54,306
  Short�Term Investments  19,834
  Rest r icted:
  Cash and Cash Equivalents  585,856
  Short�Term Investments  19,834
  Receivables:
  Accou nts Receivable  15,252
  Interest and Dividends  260
  Due f rom Other Fu nds ( Note 8  )  14,153
  Total Cu r rent Assets  709,495
  Noncur rent Assets:
  Rest r icted:
  Investments  9,708
  Capital Assets:
  Non�Depreciable Capital Assets ( Note 2)  699,484
  Depreciable Capital Assets, Net ( Note 2)  1,655,232
  Total Noncu r rent Assets  2,364,424
  Total Assets  3,073,919
  DEFER R ED OUTFLOWS OF R ESOU RCES
  Defer red Outf  lows of Resou rces
  Loss on Bond Ref u nding  10,441
  Total Defer red Outf  lows of Resou rces  10,441
  LIABILITIES
  Cu r rent Liabilities f rom Rest r icted Assets:
  Payable s:
  Accounts  23,602
  Interest  4,160
  Due to Other Fu nds ( Note 8  )  11,680
  Revenue Bonds Payable ( Notes 4  , 5)  93,601
  Subscr iption Obligations ( Note 4  , 7)  6,094
  Total Cu r rent Liabilities  139,137
  Noncu r rent Liabilit ies:
  Revenue Bonds Payable ( Notes 4  , 5)  2,569,258
  Total Noncu r rent Liabilities  2,569,258
  Tot al Liabilit ies  2,708,395
  DEFER R ED I NFLOWS OF R ESOU RCES
  Defer red Inf  lows of Resou rces
  Gain on Bond Ref u nding  96,845
  Total Defer red Inf  lows of Resou rces  96,845
  N ET POSI T ION
  Net Invest ment in Capital Assets  388,856
  Restricted for:
  Transpor tation � Const r uction  150,836
  Transpor tation � Operations and Maintenance  81,758
  Debt Ser vice  171,989
  Unrestricted  (514,319)
  Total Net Position  $ 279,120
  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.





Page 18  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

=== PDF PAGE 27 ===
  Central Texas Turnpike System
  Statement of Revenues, Expenses and Changes in Net Position
  For the Fiscal Year Ended August 31, 2025 (Amounts in Thousands)

  OPERATING REVENUES
  Toll Revenue � Pledged  $ 311,477
  Fee Revenue � Pledged  16,684
  Other Sales Goods & Ser vices � Pledged  9,475
  Total Operating Revenues  337,636


  OPER  AT I NG EX PENSES
  Salar ies  2,727
  Professional Fees and Services  43,768
  Travel  2
  Mater ials and Supplies  934
  Communication and Utilities  1,685
  Repairs and Maintenance  65,139
  Rent als  2
  Contracted Ser vices  43,551
  Adver t isi ng  305
  Depreciation and A mor tization  77,829
  Other Operating Expenses  8,891
  Total Operating Expenses  244,833
  Operating Income  92,803


  NONOPER ATI NG R EV EN U ES ( EX PENSES)
  L ea se Revenue  987
  Interest and Invest ment Income  31,158
  Net Increase in Fair Value of Invest ments  1,685
  Amor tization  16,396
  Interest Expense  (118,853)
  Other Financing Fees  (35)
  (Loss) on Sale of Capital Asset  (5,319)
  Other Nonoperating Expenses  (263)
  Total Nonoperating Revenues (Expenses)  (74,244)
  Income before Transfers  18,559


  TR A NSFER S
  Transfers In ( Note 8  )  14,486
  Total Transfers  14,486
  Change in Net Position  33,045


  Net Position, September 1, 2024  246,075
  Net Position, Aug ust 31, 2025  $ 279,120


  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.










Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 19

=== PDF PAGE 28 ===
  Central Texas Turnpike System
  Statement of Cash Flows
  For the Fiscal Year Ended August 31, 2025 (Amounts in Thousands)

  CASH FLOWS FROM OPERATING ACTIVITIES
  Proceeds f rom Customers  $ 349,791
  Pay ments to Suppliers for Goods and Ser vices  (188,138)
  Net Cash Provided by Operating Activities  161,653

  CASH FLOWS FROM CA PITA L A N D R ELATED FI NA NCI NG ACTI V ITIES
  Proceeds f rom Land Revenue  987
  Proceeds af ter Ref u nding f rom Escrow Accou nt  841
  Pay ments of Pr incipal on Debts  (60,410)
  Pay ments of Interest on Debts  (99,934)
  Pay ments for SBITA  (9,895)
  Pay ments for Other Financing Fees  (35)
  Net Cash ( Used) By Capital A nd Related Financing Activities  (168,446)


  CASH FLOWS FROM I N V ESTI NG ACTI V ITIES
  Proceeds f rom Sales and Mat u r ities of Invest ments  35,000
  Proceeds f rom Interest and Invest ment Income  31,940
  Pay ments for A rbit rage Rebate  (263)
  Net Cash Provided By Investing Activities  66,677


  Net Increase In Cash A nd Cash Equivalents  59,884


  Cash A nd Cash Equivalents � Begin ning  580,278
  Cash A nd Cash Equivalents � Ending  $ 640,162


  R ECONCILI ATION OF CASH A N D CASH EQU I VA LENTS PER STATEM ENT
  OF CASH FLOWS TO STATEM ENT OF NET POSITION
  Cash and Cash Equivalents:
  Unrestricted  $ 54,306
  Rest r icted  585,856
  $ 640,162
























Page 20  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

=== PDF PAGE 29 ===
  Central Texas Turnpike System
  Statement of Cash Flows (concluded)
  For the Fiscal Year Ended August 31, 2025 (Amounts in Thousands)



  R ECONCILI ATION OF OPER ATI NG I NCOM E TO NET CASH PROV I DED
  BY OPERATING ACTIVITIES
  Operating Income  $ 92,803
  Adju st me nt s:
  Depreciation  77,829
  Other Non�Cash Items  (300)
  Decrease in Receivables  10,280
  Decrease in Inventories  224
  (Decrease) in Payables  (12,080)
  (Decrease) in Due to Other Fu nds  (8,063)
  Decrease in Due f rom Other Fu nds  960
  Total Adjust ments  68,850
  Net Cash Provided by Operating Activities  $ 161,653

  NONCASH I N V ESTI NG, CA PITA L , A N D FI NA NCI NG ACTI V ITI ES:
  Net change in Fair Market Value of Invest ments  $ 1,685
  Accretion on Bonds Payable  $ (24,112)
  Amor tization of Bonds Payable  $ 16,396
  A mor tization of Defer red Inf  low/Outf  low  $ 6,261


  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.





































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 21

=== PDF PAGE 30 ===
Page 22  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

=== PDF PAGE 31 ===
Note 1 – Summary of Significant Accounting Policies  �������������������������������������������������������������������������������������������  24
Note 2 – Capital Assets  �������������������������������������������������������������������������������������������������������������������������������  28
Note 3 – Deposits, Investments, and Repurchase Agreements  ����������������������������������������������������������������������������������  29
Note 4 – Summary of Long  �Term Liabilities ������������������������������������������������������������������������������������������������������  31
Note 5 – Bonded Indebtedness  �����������������������������������������������������������������������������������������������������������������������  32
Note 6 – Retirement Plan and Postemployment Benefits other than Pensions  ����������������������������������������������������������������  34
Note 7 – Subscription  �Based Information Technology Arrangements (SBITA) ��������������������������������������������������������������  34
Note 8 – Interfund Activity  ���������������������������������������������������������������������������������������������������������������������������  34
Note 9 – Continuance Subject to Review  ����������������������������������������������������������������������������������������������������������  35
Note 10 – Commitments & Contingencies  ���������������������������������������������������������������������������������������������������������  35
Note 11 – Risk Financing & Related Insurance  ���������������������������������������������������������������������������������������������������  36












































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 23

=== PDF PAGE 32 ===
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

  The accompanying financial statements reflect the financial position of the Central Texas Turnpike System (CTTS). CTTS is an
enterprise fund of the Texas Department of Transportation (TxDOT), an agency of the state of Texas. The Texas Transportation Commission
(Commission), the governing body of TxDOT, has the authority to commit CTTS to various legal agreements.

  As of Aug. 31, 2025, CTTS consists of State Highway 130 Segments 1 through 4, State Highway 45 North, CTTS tolled portion of
Loop 1 and State Highway 45 Southeast. A portion of the costs of planning, designing, engineering, developing and constructing of the
first three elements was financed by bonds issued by the Commission. In fiscal 2013, State Highway 45 Southeast was transferred to
CTTS. In the future, at the Commission’s discretion, additional projects may be added to CTTS.

  CTTS does not have any employees, although labor costs are included in the cost of constructing, operating and maintaining CTTS.
When TxDOT staff members perform work on behalf of CTTS, the proportionate cost of that labor is reported as an expense of CTTS.
TxDOT’s risk financing and insurance programs apply to CTTS.

  The records of CTTS are maintained in accordance with the practices set forth in the provisions of the indentures of the outstanding
revenue bonds.  These practices are modeled after generally accepted accounting principles in the United States of America (GAAP) that
are similar to private business enterprises.

Basis of Presentation and Basis of Accounting

  The accompanying financial statements were prepared in conformance with GAAP as prescribed by the Governmental Accounting
Standards Board (GASB). Financial reporting for CTTS is based on all GASB pronouncements. The data in this report is combined and
consolidated by the Texas Comptroller ’s Office with similar data from other state agencies and universities in the preparation of the state
of Texas Annual Comprehensive Financial Report (ACFR).

GASB Pronouncements and Implementation Guides Effective for Fiscal 2025

In fiscal 2025 CTTS adopted the following new GASB pronouncements and implementation guides:

  ●  GASB Statement No. 101, Compensated Absences. This Statement requires governments to recognize a liability for compensated
  absences when (1) leave has been earned but not used, and (2) leave has been used but not yet paid. A liability for unused leave
  must be recognized if the leave is attributable to past service, accumulates, and is more likely than not to be used or paid. Leave
  expected to convert to defined benefit postemployment benefits is excluded. This Statement requires that a liability for certain
  types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave
  commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the
  leave is used. Liabilities for unused leave are measured using the employee’s pay rate as of the financial statement date. Used but
  unpaid leave is measured at the expected settlement amount. Certain salary�related payments that are directly and incrementally
  associated with payments for leave also should be included in the measurement of the liabilities. Under the current financial
  resources measurement focus, expenditures should be recognized to the extent the liability will be liquidated with available
  resources. Disclosure requirements have been simplified to allow reporting of net changes in the liability, and governments are
  no longer required to disclose which funds typically liquidate the liability.

  ●  GASB Statement No. 102, Certain Risk Disclosures.  This Statement requires a government to assess whether a concentration or
  constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to
  the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated
  with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely
  than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that
  those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial
  statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and
  the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following:

  ○  The concentration or constraint

  ○  Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or
  had begun to occur prior to the issuance of the financial statements

  ○  Actions taken by the government prior to the issuance of the financial statements to mitigate the risk.



Page 24  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

=== PDF PAGE 33 ===
  ●  Implementation Guide 2025�1, Implementation Guidance Update – 2025. Question 4.16 – Financial Reporting Model
  Improvements.

  These financial statements present only the financial position, changes in financial position and cash flows of CTTS. They are not
intended to, and do not, present fairly the financial position, changes in financial position or cash flows of TxDOT. The reporting period
is for the state fiscal year ended Aug. 31, 2025.

Fund Structure

  The activity of CTTS is reported in a proprietary fund.  Proprietary funds are accounted for using the economic resources measurement
focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized
at the time liabilities are incurred.

  A proprietary fund distinguishes operating from nonoperating items. Operating revenues and expenses result from providing services
or producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. Operating expenses for an
enterprise fund include cost of sales and services, administrative expenses and depreciation on capital assets.

Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position

Cash and Cash Equivalents

  For reporting purposes, cash and cash equivalents include cash on hand, cash in transit, cash in local banks, cash in the treasuries,
money market funds, state and local government investment pools, and cash equivalents. The statement of cash flows presents the change
in cash and cash equivalents during the fiscal year. Cash equivalents are defined as short�term, highly�liquid investments that are both
readily convertible to known amounts of cash and so near maturity they present insignificant risk of a decrease in value due to changes in
interest rates. Investments with an original maturity of three months or less and used for cash management rather than investing activities
are considered cash equivalents.

Investments

  Short�term investments are investments with a maturity greater than 90 days but less than one year at the time of purchase. Short�term
investments are recorded on an amortized cost basis. Long�term investments are investments with a maturity of one year or more at the
time of purchase. Long�term investments are recorded at fair value based upon quoted market prices as of the fiscal year end. Long�Term
investments with a maturity date within one year of the financial statement date are reported as short�term investments. All investment
income, including changes in the fair value of investments, is recognized as nonoperating revenue in the Statement of Revenues, Expenses
and Change in Net Position. See Note 3 for more information.

Accounts Receivable

  The accounts receivable asset is comprised of toll operations revenue earned but not yet received by CTTS of $73.6 million, net of an
allowance for doubtful accounts of $58.3 million, as of Aug. 31, 2025. A reasonable collection percentage estimate, generally based on
historical results, is applied to open receivables for the current fiscal year to determine the estimate of the unpaid but realizable revenue
earned for the current fiscal year.

Interest and Dividends Receivable

  The amount of interest and dividends that has been earned, but which has not yet been received as of fiscal year end.

Due from Other Funds

  Due from other funds represents amounts due to other funds within TxDOT, for a variety of costs. See Note 8 for more information.

Restricted Assets

  Restricted assets include monies or other resources restricted by legal or contractual requirements. These assets include proceeds of
enterprise fund notes/loans, revenue bonds and revenues set aside for statutory or contractual requirements. CTTS may receive funding
whose related expenditure is restricted to certain activities. In situations where both restricted and unrestricted resources are available to
cover expenses, CTTS will first expend the restricted resources and cover additional costs with unrestricted resources. CTTS reserves
the right to selectively defer the use of restricted assets.





Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 25

=== PDF PAGE 34 ===
Capital Assets

  Capital assets, which include buildings, construction in progress, infrastructure, intangible assets, land and permanent land�use rights,
are capitalized and reported in the financial statements.

  Capital assets are assets with a cost above a set minimum capitalization threshold that, when acquired, have an estimated useful life
of more than one year. Land, permanent land�use rights and construction in progress do not have a capitalization threshold and are not
depreciated. The capitalization thresholds and useful lives of CTTS’ depreciable capital assets are as follows:

  Capitalization  of Assets
  Capitali zat ion  Est imated
  Ty  p  e  Threshold  Usefu l Li fe
  Buildings and Building Improvements  $100,000  22 yea r s
  Inf rast r uct ure, Depreciable  $500,000  40 yea r s
  Intangible R ight�to�Use Asset �Subscr iption based IT A r rangements (SBITAs)$500,000  > 1  Ye  a  r

  All capital assets are capitalized at cost or estimated historical cost if actual historical cost is not available. Donated capital assets
are recorded at acquisition value at the date of donation. Costs of normal maintenance and repairs that do not add value to the asset or
materially extend the asset’s useful life are not capitalized.

  CTTS uses the depreciation approach for reporting both highways and highway bridges of the infrastructure assets. Under the
depreciation approach, infrastructure assets are depreciated over a 40  �year life, and certain preservation costs are capitalized. The
capitalization threshold of $500,000 is used for both highway bridges and roadways.

  CTTS also holds three years of infrastructure costs in construction in progress at all times. At the fourth year, the first year is moved
to depreciable infrastructure. The three�year assumption is based on a 3 year contract life when using the weighted dollar analysis of
project costs and completion dates over the ten year history.

  The intangible Right To Use (RTU) subscription asset is measured at the amount of the initial measurement of the subscription
liability, plus any payments made to the SBITA vendor before the commencement of the subscription term plus any payments made in
the implementation stage at or before the commencement of the subscription term. A RTU subscription asset should be amortized in a
systematic and rational manner over the shorter of the subscription term or the useful life of the underlying asset. The amortization of
the RTU subscription asset should be reported as an outflow of resources over the subscription term.  See Note 7 for more information.

Deferred Inflows of Resources and Deferred Outflows of Resources

  Deferred outflows of resources are a consumption of net position by the government that is applicable to a future reporting period.
Deferred outflows of resources increase net position, similar to assets. Loss on refunding debt is reported as deferred outflows of resources.

  Deferred inflows of resources are on acquisition of net assets by TxDOT that are applicable to a future reporting period. Deferred
inflows have a negative effect on net position, similar to liabilities. Gain on refunding debt is reported as deferred inflows of resources.

Accounts Payable

  Accounts payable represents the liability for the value of assets or services received during the reporting period for which payment
is pending.

Interest Payable

  Interest payable represents the liability for the interest expense incurred during the reporting period for which payment is pending.

Due to Other Funds

  Due to other funds represents amounts due to other funds within TxDOT, for a variety of costs. See Note 8 for more information.

Revenue Bonds Payable

  Revenue bonds payable are reported at par less unamortized discount or plus unamortized premium. Payables are reported separately
as either current or noncurrent in the statement of net position. See Notes 4 and 5 for more information





Page 26  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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Subscription Obligations

  GASB 96 requires the subscription obligations be recognized at the commencement of the SBITA term when the subscription asset
is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to
be made during the subscription term. See Notes 4 and 7 for more information.

Net Position

  Proprietary funds report net position as the residual amount in a statement of net position. The categories of net position reported in
this report include:

Net Investment in Capital Assets

  Net investment in capital assets consists of capital assets (net of accumulated depreciation), and deferred outflow of resources, reduced
by outstanding balances for bonds, notes and other debt that are attributed to the acquisition, construction or improvement of those assets.

Restricted

  Restricted net position results when constraints placed on net position’s use are either externally imposed by creditors, grantors,
contributors and the like, or imposed by law through constitutional provisions or enabling legislation. The restricted component of net
position represents restricted assets reduced by liabilities related to those assets. When both restricted and unrestricted resources are
available for use, generally it is TxDOT’s policy to use restricted resources first, then unrestricted resources when they are needed.

Unrestricted

  Unrestricted net position consists of the assets and liabilities that are not included in the determination of net investment in capital
assets or the restricted component of net position.

Revenues, Expenses, and Transfers

Operating Revenues

  Operating revenues are comprised of toll revenue and fee revenue. Toll revenue is associated with tolls on the system, toll revenue
from tags, pay�by�plates, and pay�by�mail transactions. Fee revenue includes Fee revenue–pledged and other sales goods & services  �
pledged. Fee revenue�pledged includes customer service center revenues and interoperability fee revenues received by TxDOT pursuant
to the Central Interoperability Agreement. Other sales goods & services�pledged includes service fee payments received by TxDOT
from toll roads owned or operated by TxDOT other than the system. As a result of entering into the agreement with HCTRA, from and
after the effective date of such agreement, TxDOT no longer receives any fee revenue for deposit into the System revenue und, except
for fee revenue relating to toll transactions and TxDOT toll operations activities that occurred prior to the ffective date. CTTS operating
revenues for fiscal year 2025 are mainly comprised of $311.5 million in toll revenue. This represents $272.3 million in gross toll revenue,
plus a decrease in allowance for doubtful accounts of $39.2 million. CTTS also earned toll fees of $16.7 million and other sales revenue
of $9.5 million.

Operating Expenses

  Operating expenses include expenses incurred in operating the toll roads and the customer service center, and depreciation and
amortization on capital assets.

Nonoperating Revenues/Expenses

  Nonoperating revenues are mainly comprised of interest and investment revenue and lease revenue. Nonoperating expenses are any
expenses not classified as operating, including bond interest expense and accretion on capital appreciation bonds

Transfers

  Transfers In/Out represents the flow of assets between funds. See Note 8 Interfund Activity for more information.









Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 27

=== PDF PAGE 36 ===
NOTE 2 – CAPITAL ASSETS

  The table below presents the composition of CTTS’ capital assets, reclassifications, additions and deletions during fiscal 2025. The
reclassifications column represents completed construction projects, and transfers of capital assets between non�depreciable to depreciable
assets. The additions column includes current year purchases, depreciation and amortization. The deletions column represents assets
removed during the current fiscal year via sale or disposition.

  Capital Assets Activity
  For the Fiscal Year Ended August 31, 2025
  (Amounts in Thousands)
  Balance  Reclass-  Balance
  09/1/2024  if ications  Additions  Deletions  08/31/2025


  Non-Depreciable Assets & Non-Amor t i zable Assets
  Land  $  668,525  $  $  $  $  668,525
  Constr uction in Progress  19,318  (7,825)  11,493
  Land Use R ights  19,466  19,466
  Total Non�Depreciable Assets  707,309  (7,825)  0  0  699,484

  Depreciable Assets
  Buildi ngs  8,360  8,360
  Infrastr uct ure  2,421,166  7,825  2,428,991
  Total Depreciable Assets  2,429,526  7,825  0  0  2,437,351

  Less Accumulated Depreciation for:
  Buildi ngs  (6,645)  (361)  (7,006)
  Infrastr uct ure  (717,821)  (57,579)  (775,400)
  Total Accumulated Depreciation  (724,466)  0  (57,940)  0  (782,406)
  Depreciable Assets, Net  1,705,060  7,825  (57,940)  0  1,654,945

  Intangible Capital Assets - Amor t i zable
  Sof t wa re  51,063  (51,063)  0
  Total A mor tizable Assets  51,063  0  0  (51,063)  0

  Less Accu mulated A mor tization for:
  Sof t wa re  (36,169)  (9,574)  45,743  0
  Total Accu mulated A mor tization  (36,169)  0  (9,574)  45,743  0
  Amor tizable Assets, Net  14,894  0  (9,574)  (5,320)  0

  Intangible R ight to Use ( RTU ) Assets - Amor t i zable
  Subscriptions  129,176  (51,178)  77,998
  Total A mor tizable RT U Assets  129,176  0  0  (51,178)  77,998

  Less Accu mulated A mor tization for:
  Subscriptions  (67,396)  (10,315)  (77,711)
  Total Accu mulated A mor tization RT U Assets  (67,396)  0  (10,315)  0  (77,711)
  A mor tizable Intangible RT U Assets, Net  61,780  0  (10,315)  (51,178)  287

  Total Capital Assets, Net  $  2,489,043  $  0  $  (77,829) $  (56,498) $  2,354,716







Page 28  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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NOTE 3 – DEPOSITS, INVESTMENTS, AND REPURCHASE AGREEMENTS

  CTTS is authorized by statute to make investments following the “prudent person rule”. CTTS has complied, in all material respects,
with statutory authorization, bond documents, constraints and commission policies during the period.

Custodial Credit Risk – Deposits

  Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, deposits or collateral
securities in the possession of an outside party will not be recovered. All CTTS’s deposits are protected by insurance provided by the
Federal Deposit Insurance Corporation (FDIC).

  Regular depository accounts are insured by the FDIC up to $250 thousand per depositor, per insured bank. As of Aug. 31, 2025, the
sweep account is subjected to the same $250 thousand coverage provided to a regular depository account.

Investments

Measurement

  CTTS categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles
in the United States of America (GAAP). The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The
three�tiered fair value hierarchies are as follows.

  ●  Level 1 – Quoted prices in active markets for identical investments

  ●  Level 2 – Significant other observable inputs other than quoted market prices

  ●  Level 3 – Significant unobservable inputs

As of Aug. 31, 2025, the measurements of CTTS’s investments are summarized below:

  Investment Fair Values
  August 31, 2025 (Amounts in Thousands)


  Fair Value Hierarchy  Other Measurement
  Investment Type  Level  1  Amor t i zed Cost  To  t  a  l



  Money Market Mut ual Fu nds  $  $ 885 $ 885
  Gover n ment Sponsored Entities  49,376  49,376
  Gover n ment I nvest ment Pools  450,018  450,018
  Repu rchase Ag reements  182,259  182,259
  US Treasu r y Secu r it ies  7,000  7,000
  Total Invest ments  $ 49,376 $ 640,162 $ 689,538


  Government sponsored entities investments of $49.4 million with maturities of one year or more, are measured from the purchase
date to maturity date. These investments are valued at quoted market prices (Level 1 input).

  As of Aug. 31, 2025, CTTS also has the following types of investments which are excluded from measurement at fair value according
to GASB 72.

  ●  Investments in money market mutual funds, US treasury securities, government investment pools and repurchase agreements of
  $640.2 million with maturities less than one year, measured from purchase date to maturity date.  These investments are valued
  at amortized cost.







Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 29

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Custodial Credit Risk - Investments

  Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty, the Commission will not be able to
recover the value of its investments or collateral securities that are in the possession of an outside party. The Commission’s investment
policy states that all securities purchased by the Commission shall be designated as assets of the Commission and shall be protected
through the use of a third�party custody/safekeeping agent, which may be a Trustee.

Credit Risk - Investments

  Direct credit risk for investments is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The
investment policy prohibits the Commission from entering into long�term investment agreements or other ongoing investment transactions
with a final maturity or termination date of longer than six months with any financial institution that initially has a long� term rating
category of less than “A” and that does not have at least one long  �term rating of at least “AA” by a nationally recognized statistical rating
organization (NRSRO). All investments made by the Commission have been made through a firm on the then�current list of qualified
financial institutions approved by the Commission.

  The Commission’s policy does not limit the amount of investment in obligations of the United States or its agencies.

  As of Aug. 31, 2025, CTTS’ investments had the following ratings:

  Investment Credit Ratings
  August 31, 2025 (Amounts in Thousands)

  Standard
  Investment Type  Valuat ion  M o o d y’s&  Po o r ’s  Fitch
  Money Market Mut ual Fu nds:
  J PMorgan US Gover n ment Fu nd  $ 885  Aaa�mf  AAAm  AAAmmf
  Gover n ment Sponsored Entities:
  Federal Far m Credit Ban ks  9,708  A a1  A  A+  A  A+
  Federal Home Loan Mor tgage Cor poration  39,668  A a1  A  A+  A  A+
  Gover n ment I nvest ment Pools:
  Te  x  P  o  o  l  P  r  i  m  e  450,018  NR  AAAm  NR
  Repu rchase Ag reements:
  Repo (TTSTC)  182,259  NR  AAAf  NR
  US Treasu r y Secu r it ies:
  US Treasu r y State and Local Gover n ment Ser ies  7,000  A a1  A  A+  A  A+
  To  t  a  l  $ 689,538

  N R= Not Rated

Concentration of Credit Risk

  Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. Assets held
shall be diversified to eliminate the risk of loss resulting from over�concentration of assets in a specific maturity, a specific issuer or a
specific class of securities. As of Aug. 31, 2025, the following investments exceeded five percent of the total portfolio: Federal Home
Loan Mortgage Corporation, TexPool Prime and the Repurchase Agreement.

  The Commission addresses diversification in the Commission’s Investment Policy. Diversification strategies shall be determined and
revised periodically by the investment officer.

Interest Rate Risk

  Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Commission has
addressed interest rate risk in its various accounts by matching as closely as possible anticipated cash flows with income and return of
principal on investments. Approximately 98.6 percent of the investments mature within one year. Market value fluctuation of the overall
portfolio is minimized by keeping the weighted average maturity low.



Page 30  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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NOTE 4 – SUMMARY OF LONG-TERM LIABILITIES

  As of Aug. 31, 2025, CTTS had six bond issues and one subscription obligation outstanding. Additional detail is provided in the
sections that follow. As detailed below, the following changes occurred in long�term liabilities during the year ended Aug. 31, 2025.

  Long-Term  Liabilities Activity
  For the Fiscal Year Ended August 31, 2025 (Amounts in Thousands)


  Beginning  Ending
  Balance  Balance  Due Within  A  mou  nt  s  D  ue
  09/01/2024  Adjustments*  Additions**  Reduct ions  08/31/2025  One Year  Thereafter


  Revenue Bonds Payable  $ 2,715,552  $ (16,395)  $ 24,112  $ (60,410)  $ 2,662,859  $ 93,601  $ 2,569,258
  Right�to�Use Subscription
  Obligat ions  80,806  (51,179)  (23,533)  6,094  6,094  0
  To  t  a  l  $ 2,796,358 $ (67,574) $ 24,112  $ (83,943)  $ 2,668,953  $ 99,695  $ 2,569,258


  * Includes cu r rent year amor tization of premiu ms & discou nts, and adjust ments of RT U liabilitiy.
  ** Includes cu r rent year accretion.

Pledged Future Revenues

  Pledged revenues are those specific revenues that are formally committed to directly secure the payment of bond debt service. The
table below provides information on pledged revenue and pledged future revenue of the CTTS revenue bonds.


  Pledged Future Revenue (Amounts in Thousands)


  Pledged Revenue Required for Fut u re Pr incipal and Interest on Existing Debt  $  3,706,983
  Ter m of Com mit ment Ending  8  / 15  /  2  0  4 2
  Percentage of Revenue Pledged  95.88%
  Cu r rent Year Pledged Revenue  $  35 4,534
  Cu r rent Year Pr incipal and Interest Paid  $  16  0  ,  3  4  4































Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 31

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NOTE 5 – BONDED INDEBTEDNESS

Revenue Bonds

  Transportation Code, Chapter 228 Subchapter C authorizes the Commission to issue revenue bonds to pay a portion of the costs
of planning, designing, engineering, developing and constructing the CTTS. The bonds are payable from and secured solely by a first
and second lien on, as applicable, and pledge of the trust estate. The trust estate consists of all project revenues and all project earnings
including investment earnings deposited into the revenue fund, construction fund (except for any amounts held in a sub�account containing
monies derived from the state highway fund or any monies received by the Commission that are restricted to another use), the debt service
fund, the debt service reserve fund, the rate stabilization fund, and the general reserve fund.

  In an event of default under the terms of the Indenture of Trust dated as of July 15, 2002, the Trustee may take the following actions
and upon the written request of the owners of not less than 20 percent in principal amount of outstanding obligations shall proceed to:

(i)  Protect and enforce its rights and the rights of the owners under the state law and the Indenture by such suits, actions or special
  proceedings in equity or at law, or by proceedings in the office of any board or officer having jurisdiction, either for mandamus or
  the specific performance of any covenant or agreement contained in the Indenture or in aid or execution of any power granted by the
  Indenture or for the enforcement of any proper legal or equitable remedy, as the Trustee, being advised by counsel, shall deem most
  effectual to protect and enforce such rights.

(ii)  In the enforcement of any remedy under the Indenture the Trustee shall be entitled to sue for, enforce payment of and receive any
  and all amounts then or during any event of default becoming, and at any time remaining, due from the Commission.

  Miscellaneous Bond Information
  (Amounts in Thousands)
  Maturit ies
  Bonds
  Issued  Range of  First  Last  Fi rst Cal l
  Descript ion of Issueto Date  Date IssuedInterest Rates  Ye  a  r  Ye  a  r  Date
  First Tier Revenue Bonds Ser ies 2002�A
  Non�Callable Capital Appreciation Bonds***  $ 842,057  08/29/2002  4.47%  5.75 %  2 012  2030  n  /a
  Callable Capital Appreciation Bonds**  325,494  08/29/2002  6.0 0%  6 .10 %  2025  2038  08/15/2012
  First Tier Revenue Ref u nding Bonds Ser ies 2020�A  179,475  03/05/2020  3.0 0 %  5.0 0 %  2039  2040  08/15/2030
  First Tier Revenue Ref u nding Bonds Taxable Ser ies 2020�C  279,305  03/05/2020  3.03%  3.03%  2  0 31  2  0  41  08/15/2030
  First Tier Revenue Ref u nding Bonds Ser ies 2024�A  386,210  08/07/2024  5.0 0 %  5.0 0 %  2 032  2038  08/15/2034
  First Tier Revenue Ref u nding Put Bonds Ser ies 2024�B  225,000  08/07/2024  5.0 0 %  5.0 0 %  20 42  20 42  05/15/2030
  Second Tier Revenue Ref u nding Bonds Ser ies 2024�C  1,022,495  08/07/2024  5.0 0 %  5.0 0 %  2  0 31  20 42  08/15/2034
  To  t  a  l  $ 3,260,036


  * Bonds are subject to redemption pr ior to their respective mat u r ities at the option of the Com mission.
  ** These bonds are not outstanding as of 08/31/25.
  *** Bonds issued to date include interest accreted to pr incipal.

  Neither the state, Commission, TxDOT nor any other agency or political subdivision of the state is obligated to pay the principal,
premium, discount or interest on the CTTS revenue bonds except from the trust estate. The bond indenture does not create a mortgage
on the CTTS.
















Page 32  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Debt service requirements for the outstanding revenue bonds as of Aug. 31, 2025, are detailed in the following tables:

  Debt Service Requirements - Revenue Bonds (Amounts in Thousands)
  Revenue Bonds
  Ye  a  r  Principal  Interest  To  t  a  l
  2026  $ 77,205  $ 98,119  $ 175,324
  2027  84,355  98,119  182,474
  2028  91,830  98,119  189,949
  2029  97,040  98,119  195,159
  2030  102,025  98,119  200,144
  2031�2035  659,870  418,934  1,078,804
  2036�2040  971,685  224,428  1,196,113
  2041�2045  460,930  28,085  489,015
  2,544,940  1,162,042  3,706,982
  Unamor tized Accretion  (71,486)  (71,486)
  Unamor tized Premiu m  189,405  189,405
  To  t  a  l  $ 2,662,859  $ 1,162,042  $ 3,824,901


Defeased Bonds

  The Commission has defeased various bond issues by placing funds in irrevocable trusts with external financial institutions to provide
for all future debt service payments on the old bonds. As of Aug. 31, 2025, the amount of CTTS defeased bonds that remain outstanding
are presented in the following table:

  Defeased Bonds Outstanding (Amounts in Thousands)
  Descript ion  P  a  r  Va  l  u  e
  Revenue Bonds
  First Tier Revenue Bonds Ser ies 2002�A Capital Appreciation Bonds*  $ 6,871
  To  t  a  l  $ 6,871

  * Includes $5,060 of accreted interest.






























Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 33

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NOTE 6 - RETIREMENT PLAN AND POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

  CTTS, an enterprise fund of the Texas Department of Transportation (TxDOT), is part of TxDOT’s reporting entity. CTTS does not
have any employees and does not make contributions to any retirement plans or other postemployment benefits (OPEB) plans. TxDOT
employees provide all accounting and administrative services for CTTS. Those employees are members of the Employee Retirement
System of Texas defined benefit pension plan (ERS Plan) and the State Retiree Health Plan (SRHP). CTTS is not obligated in any form
for the funding of the pension benefits provided by the ERS Plan or the postemployment benefits provided through the SRHP. Allocation
of the pension and OPEB liabilities and expenses for CTTS is deemed unnecessary and not required. The details are disclosed in the
TxDOT’s Annual Comprehensive Financial Report for the pension plan in Note 8 and the OPEB plan in Note 10.

NOTE 7 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA)

  TxDOT implemented GASB Statement No. 96 Subscription Based Information Technology Arrangements during fiscal 2023, and
recognized one agreement in support of the Texas Department of Transportation Tolls Back Office System (TxBOS). The initial term
was for one year from Jun 30, 2022 to Jun 29, 2023 with the option to renew for three additional one�year periods. The agreement was
terminated on Sep 10, 2025. As of Aug 31, 2025, the subscription asset and accumulated amortization are $78.0 million and $77.7 million.

  Below are the principal and interest requirements:

  Future Subscription Payments
  (Amounts in Thousands)
  Total Future Minimum
  Ye  a  r  Principal  Interest  Subscript ion Payments
  2026  $ 6,094 $ 73 $ 6,167
  To  t  a  l  $ 6,094 $ 73 $ 6,167



NOTE 8 – INTERFUND ACTIVITY

  Transfers In/Out represents the flow of assets (cash or goods) between CTTS and other funds of TxDOT. The State Highway Fund
(SHF) is the major governmental fund of TxDOT. The Grand Parkway Transportation Corporation (GPTC) is a blended component unit
of TxDOT. The State Highway 249 System (SH249) is an enterprise fund of TxDOT. In fiscal 2025, CTTS transfers in from other funds
were $14.5 million. $5.2 million of this amount represented GPTC and SH249’s contribution to the SBITA reported by CTTS.

  Due To and Due From Other Funds represent amounts due to or due from other funds within TxDOT, for a variety of costs.

  At the end of fiscal 2025, the net Due To and Due From Other Funds were as detailed in the following tables:

  Interfund Balance
  August 31, 2025 (Amounts in Thousands)


  Categor y  D  u  e  To
  Due to SH F � Operations and Maintenance  $ 11,680
  $ 11,680

















Page 34  Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System

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  Interfund Balance
  August 31, 2025 (Amounts in Thousands)

  Categor y  Due From
  Due f rom SH F (Toll Fu nds Custodial Accou nt)  14,153
  $ 14,153



  The $14.2 million balance due from the SHF (Toll Funds Custodial Account) is comprised of tolls and fees held in toll custody funds
 as of Aug. 31, 2025. Also included are toll and fee revenues collected but not transferred from the SHF as of Aug. 31, 2025.


NOTE 9 – CONTINUANCE SUBJECT TO REVIEW

  Under the current Texas Sunset Act, TxDOT will be abolished effective Sept. 1, 2029, unless continued in existence by the 91 st
Legislature as provided by the Act. If abolished, TxDOT may continue until Sept. 1, 2030 to wind down its operations. In the event that
TxDOT is abolished pursuant to the Texas Sunset Act or other law, Texas Government Code, Section 325.017(f), acknowledges that such
action will not alter the obligation of the abolished agency.

NOTE 10 – COMMITMENTS & CONTINGENCIES

Lawsuits and Claims

  CTTS is contingently liable in respect to lawsuits and claims in the ordinary course of business which, in the opinion of TxDOT’s
management, will not have a material adverse effect on the financial statements.

Arbitrage

  Rebatable arbitrage defined by Internal Revenue Code (IRC), Section 148, is earnings on tax exempt bond proceeds in excess of the
yield on the bond. The rebatable arbitrage must be repaid to the federal government. Pursuant to the applicable bond Indenture of Trust, a
Rebate Fund will be established under the Indenture to which deposits will be made upon the determination by a verification agent that a
rebate payment may be due. The amount of rebate due to the federal government is determined and payable during each five�year period
and upon final payment of the tax�exempt bonds. IRC Section 148 also provides for certain rebate exceptions, including an exception
if certain spend�out requirements of the bond proceeds are met. During fiscal 2025, a rebatable arbitrage liability of $263 thousand was
determined. This liability was subsequently paid to the IRS on Apr. 24, 2025. TxDOT continues to monitor rebatable arbitrage liabilities,
and future liabilities are expected to remain immaterial to the agency’s overall financial condition.

  Significant Contract Commitments

  A General Engineering Consultant (GEC) contract has been entered into with HNTB Corporation, effective May 8, 2024. In addition,
two contracts were executed with Lone Star Paving Company on May. 17, 2023 and Feb. 7, 2024 respectively for highway improvement.
One of two contracts has been closed in Aug 2025. The other is expected to be completed in Sep 2025.

  Disclosure of the contract commitments as of Aug. 31, 2025 is displayed below:

  CTTS Contract Commitments
  August 31, 2025  (Amounts in Thousands)

  Contract  Cash Paid  Remaining
  Contractor  Project Descript ionCommitment  through 8/31/25  Commitment
  H NTB Cor poration  General Engineering Consultant$ 20,124  $ 4,709  $ 15,415
  Lone Star Paving Company  Seg ment 3 Overlay  57,378  50,554  6,824
  To  t  a  l$ 77,502  $ 55,263  $ 22,239




Fiscal Year Ending August 31, 2025 � Central Texas Turnpike System  Page 35

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NOTE 11 - RISK FINANCING & RELATED INSURANCE

  CTTS is a toll system financed by the Texas Transportation Commission and owned and operated by TxDOT. CTTS does not have
any employees. TxDOT provides all accounting, debt financing and administrative services.

  TxDOT is exposed to a wide range of risks due to the size, scope and nature of its activities. Some of these risks include, but are not
limited to, property and casualty losses, workers’ compensation and health benefit claims, theft, damage of assets, etc. CTTS self�insures
through funds on deposit within the Rate Stabilization Fund. The amount of funds held on deposit in the rate stabilization fund for self�
insurance has been certified as actuarially sound by AMI Risk Consultants, Inc. To date, CTTS has not had to draw upon the funds in the
rate stabilization fund to settle any claims and therefore settlements have not exceeded self�insurance coverage.

  During the fiscal year, the Texas Transportation Commission maintained a Not�for�Profit Entity and Directors, Officers Liability
Insurance Policies Including Employment Practices Claims Coverage in connection with CTTS.

























































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