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  HARRIS COUNTY TOLL ROAD AUTHORITY
  ENTERPRISE FUND
  A DEPARTMENT OF HARRIS COUNTY, TX
BASIC  FINANCIAL  STAT  EMEN  TS




























 For The Fiscal Year Ended
 September 30, 2023

 Michael Post, CPA, CIA
 Harris County Auditor

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  Toll Road Authority

  Enterprise Fund of Harris
  County, Texas
  Financial Statements As of September  30, 2023
  and for the Year Then Ended and Independent
  Auditor’s Report


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  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  BASIC FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

  TABLE OF CONTENTS
  PAGE
Introductory Section
County Auditor’s Letter of Transmittal  1

Financial Section
Independent Auditor’  s Report  5
Management’s Discussion and Analysis  8

Basic Financial Statements:

S  tatement of Net Position  15
Statement of Revenues, Expen  ses and Changes in Net Position  16
St  atement of Cash Flows  17

Notes to the Financial Statements
  1.  Summary of Significant Accounting Policie  s  18
  2. De  posits and Investments  22
  3.  Other Receivables  and Unearned Revenue  28
  4.  Notes Receivable  29
  5.  Prepaids and Other Assets  29
  6.  Capital Assets  30
  7.  Long-  term Liabilities  30
  8.  Retirement Plan  35
  9.Other Poste  mployment Benefits  40
  10.Commitment and Contingencies  46
  11.Transfers and Advances  46
  12. Recent Accounting Pronouncements  46
  13.  Restatement  47

Required Supplementary Information
Schedule of Changes in  Total OPEB Liability and  Related Ratios  48
Schedule of Changes in Net PensionLiability/(  Asset) and Related Ratios  49
Texas County and District Retirement System -  Schedule of Employer Contributions  50


Other Information  Schedule  PAGE

Traffic Count Table  1  53
Toll Rate Schedule  2  54
Toll Road Selected Financial Information  3  55
Historical Toll Road Project Operating Results and Coverages  4  56
Revenues by Toll Road Components/Segments  5  57
Toll Road Bonds Debt Service Requirements  6  58
Outstanding Toll Road Tax Bonds  7  59
Outstanding Toll Road Senior Lien Revenue Bonds  8  60

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  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  BASIC FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023


  Schedule  PAGE

Operating Funds Budget for County’s Fiscal Y  ear 2023-  2024  9  61
County Capital Projects Funds Budgeting  10  62
County Tax Debt Outstanding  11  63
Schedule of County-  wide Ad Valorem Tax Debt Service Requirements  12  64
County-  wide Authorized but Unissued Bonds  13  65
Full-Time Equivalent County Employees by Function/Program -  Last
  Ten Fiscal Years  14  66



















































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Leslie Wilks Garcia, M.Jur  ., CPA, CFE  1001 Preston, Suite 800
First Assistant County Auditor  Houston, Texas 77002-1817
  (832) 927  -4600

Errika Perkins, CPA, CIA, CFE  FAX (713) 755-8932
Chief Assistant County Auditor  Help Line (832  ) 927  -4558
Audit Division
  M  ICHAEL  P  OST  ,  CPA,  CIA
  H  ARRIS  C  OUNTY  A  UDITOR


  March  28  , 2024

  Honorable District Judges of Harris County,  Honorable Members of the Harris County Commissioners
  Court , and Citizens of Harris County, Texas

  The Harris County Auditor's Office (the “Auditor’s Office”) is pleased to present the  Basic Financial
  Statements of the Harris County Toll Road Authority Ent  erprise Fund (the  “  Authority”), a department of
  Harris County, Texas (the “  County”)  for the fiscal year ended September 30,  2023.  This report is
  submitted in accordance with Section 114.025 of the Texas Local Government Code and was prepared
  by the  staff of the County Auditor's Office.The  Basic Financial Statement s of the Authority includes all
  disclosures necessary to enable the reader to gain an understanding of the Authority’s  financial activities.
  The information and data contained herein are  accurate in all material respects and are reported in a
  manner designed to present fairly the financial position and result  s  of operations of the  Authority  in
  accordance with generally a  ccepted accounting  principles  in the United States of America  (“GAAP”).

  The  Financial Statements  consist of management’s representations concerning the finances of  the
  Authority, a department of  the County,  and management assumes full responsibility for the completeness
  and reliability of all of the information presented in this report.  To provide a  reasonable basis for making
  these represen tations,  management of the Authority  has established a comprehensive in ternal control
  framework that is designed both to protect the government’s assets from loss, theft, or  misuse, and to
  compile sufficient reliable information for the preparation of the Authority’s  financial statements in
  conformity with GAAP.  Because the cost of internal controls should not outweigh their benefits, the
  Authority’s  comprehensive framework of internal controls has been designed to provide reasonable,
  rather than absolute, assurance that the financial statements are free from material misstat  ement.

  The Authority’s  financial statements were audited by Deloitte & Touche LLP, an independent audit firm.
  The goal of the independent audit was to provide reasonable assurance that the financial statements of
  the  Authority  for  the  fiscal year ended September 30, 20  23,  are free of material misstatement.  The
  independent auditor concluded based upon the audit that there was a reasonable basis for rendering an
  unmodified  opinion  that the  Authority’s  financial statements are fairly presented in conformity with
  GAAP  in all material respects.  The independent auditor’  s report is presented as the first component of
  the financial section of this report.  Management’s  discussion and a  nalysis (MD&A), which immediately
  follows the independent auditor  ’  s report, provides a narrative introduction, overview, and analysis of the
  basic financial statements.  The MD&A complements this letter of transmittal and should be read in
  conjunction with it.

  PROFILE OF THE AUTHORITY

  History, Location, and Population
  The Authority was established in 1983 by the Harris County Commissioners Court pursuant to Chapter
  284 of the Texas Transportation Code.  Also in 1983, Harris County voters authorized  issuance of up to
  $900 million  in bonds to construct, operate  and maintain toll roads in Harris County.



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The Authority operates and maintains the following  roadways.  The six -mile  Tomball Tollway  opened
in 2015  along the State Highway  249 corridor between  Spring Cypress Road and Farm to Market Road
2920.  The Katy  Managed Lanes extend 12 miles from State Highway 6 to  Interstate  610.The Sam
Houston Tollway is the second  -most outer loop encompassing the City of Houston and surrounding areas
within Harris County and spans a distance of approximately  70 miles.  Harris County’s  13 mile segment
of the Westpark Tollway begins at I  nterstate 610 and extends to the  County line and  offers an alternative
east-west corridor for West Houston residents.  The Hardy Toll Road  generally parallels Interstate 45
and spans approximately 21 miles with an additional 2-mile connecti  on to George Bush Intercontinental
Airport.  The Fort Bend Parkway exte  nsion (Spur 90A) covers a distance of approximately 2 miles.

Harris County is located in the upper Gulf Coast in Southeast Texas approximately 50 miles from the
Gulf of Mexico.  The County’s populati  on has grown to an estimated  4.8  million residents.  Harris County
continues to be the nation’s third largest county in terms of population and one of the fastest growing
counties  with  35%  growth since 2002  .  Over a 20-  year period, Harris County’s population has grown
more than twice as f ast as the nation’s population.  This growth has created  transportation challenges that
the Authority is  responding  to by connecting communities  and improving mobility through a commitment
to excellence in the operation of a toll road system.

  Population Growth 2002-  2022


  16%
  35%
  -4%  0%


  -5%  0%  5%  10%  15%  20%  25%  30%  35%  40%

  USA  Harris County  LA County  Cook County

Authority Structure and Services
The Authority relies on charges from users of the toll road system to fund operations, debt service, and
future projects.

The Authority is organized into multiple operating units, all of which report directly to the Exec  utive
Director, as follows: (i) Administration; (ii) Capital Planning; (iii) Capital Projects & Infrastructure; (iv)
Finance; (v) Public Safety & Operations; (vi) Strategic Operations Support; and (vii) Tolling Operations.
The Authority is provided legal services by the County Attorney’s Office and other support services,
such as law enforcement and traffic incident management, by the County. As of September 30, 2023, the
Authority had 745 full  -time employees; in addition, the Authority had 342 open full  -time positions that
it plans to fill during the next fiscal year.

Budget Process
In accordance with Chapter 111 of the  Texas  Local Government Code, the County prepares and adopts
an annual operating  budget, which  serves as a financial plan for the Authority  for the new fiscal year
beginning  October  1.  The County Auditor is responsible for the preparation of the annual estimate  of
available resources for the County (including the  Authority) to be used in the preparation of the annual
budget.  The County budget (  including the  Authority’s  budget)  may not exceed the available resources
of the County funds as determined by the County Auditor.  After adoption of the budget by
Commissioners Court, the County Auditor is responsible for ensuring the expenditures are made in
compliance with budgeted appropriations.  The level of budgetary control for the  Authority is at the fund
level.  Commissioners Court may also adopt supplemental budgets for the limited purposes of spending
grant or aid money, for capital projects through the issuance of bonds,  for  intergovernmental contracts,
and for new source s of revenue not anticipated at  the original budget  adoption.  Encumbrance accounting


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is utilized to ensure effective budge  tary control and accountability.

  INFORMATION USEFUL IN ASSESSING ECONOMIC CONDITION

Local Economy
Economic conditions have a direct impact on the County’s revenues and demand for services.  Harris
County has experienced tremendous growth since the start of the 21st century with an expanding,
diversified local economy that has outperformed  most of the country.  The energy business has played a
large part in this growth, along with the relatively low cost of living, affordable housing, and an
expanding transportation system.

The Houston region is designated as the Houston-  The Woodlands-Sugar Land Metropolitan Statistical Area
(MSA), and it comprises Harris County and eight other counties. The U.S. Bureau of Economic Analysis
estimates metro Houston’s Gross Domestic Product (GDP) at approximately $  633.2  billion. Twenty-  six
companies on the 2023  Fortune 500 list are headquartered in the  Houston area.  No single industry
dominates Houston employment.

The current price of West Texas Intermediate (WTI) crude oil as of September  2023  is approximately $89
per barrel, which is an increase from  September 2022  per the U.S. Energy Information Administration.  Oil
prices increased in the last year due to many factors in the economy.

The preliminary September  2023  unemployment rate for the Houston MSA was 4.4%  compared to the
national average of 3.9  %.  The State’s preliminary unemployment rate for September  2022 was 4.1%.

The Houston-  The Woodlands-Sugar Land, Texas area had a Consumer Price Index (CPI) that was .1%
lower than other large urban areas as calculated for September  2023  by the Bureau of Labor Statistics.  The
Houston area’s lower CPI  -Urban is due in part to a lower CPI for housing, fuel and utilities than other large
urban areas.

Houston has one of  the world’s busiest ports and an excellent airpor  t system that are integral components
of the regional economy. The Port of Houston is one of the largest ports in the world.  The Port of Houston
includes the Houston ship channel, which connects the Houston area terminals and the Gulf of Mexico, and
is the location of one of the world’s largest petrochemical complexes.  The Houston Airport System includes
three airports and has nonstop flights from Houston to more than 190 destinations and six continents.  The
airport system served over 59.7  million passengers in the 12 months ending November  2023, and is
recognized worldwide as a key global gateway with strong connectivity to Latin America.

Per the Multiple Listing Service of the Houston Association of Realtors, sales of single-family homes
decreased 10.9% in September of 2023 versus September of 2022.  September sales was the 18th straight
month of negative sales activity due largely to the persistent lack of inventory and inflationary headwinds
that include rising interest rates.  Months’ supply of homes climbed to 3.5-  months supply, the highest level
since November 2019 when it was at a 3.6-  months supply. Compared to pre-pandemic September 2019,
when volume totaled 7,050, home sales were down 2.3%.

Financial Policies and Long-  Term Financial Planning
The County will continue to focus on building a strong balance sheet to maintain both financial stability
and current high bond ratings, as w  ell as allocating resources to be prepared  for floods, hurricanes, or
similar unexpected events.  The County has sufficient resources to cover current expenditures.
Key elements in maintaining the C ounty’s financial strength and high bond rati  ng are the County’s
management of investments and debt (including the investments and debt of the  Authority).  The Harris
County Investment Policy,  including investment strategies, is reviewed  and approved at least annually by
Commissioners Court.  Additional information regarding the County’s investment and debt management
has been included in Note 2 of the notes to the Authority’s  financial statements , Deposits and Investments,
and Note 7of the notes to the  Authority’s  financial statements  , Long-  Term Liabilities.


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INDEPENDENT AUDITOR’ S REPORT

County Judge Lina Hidalgo
and Members of Commissioners
Court of Harris County, Texas:
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the  Toll Road Authority Enterprise Fund (the “  Authority”  ) of
Harris County, Texas (the “  County”  ), as of and for the year  ended September  30,  2023, and the related
notes to the financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the financial position of the  Authority of Harris County, Texas,  as of September  30,  2023, and
the changes in its financial position, and cash flows thereof 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). Our responsibilities under those standards are further described in the Auditor’ s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the County,  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—  Restatement
As discussed in Note  13 to the financial statements, the beginning net position of the accompanying
2023 financial statements has been restated to correct an error. Our opinion is not modified with
respect to this matter.
Emphasis of Matter—  Presentation
As discussed in Note  1, the financial statements present only the Authority and do not purport to, and
do not, present fairly the financial position of Harris County, Texas, as of Septembe  r 30,  2023  , 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.



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Auditor’ s 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 auditor’ s 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 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, 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 County  ’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 Management’s
Discussion and Analysis, Schedule of Changes i n Total Other Postemployment Benefit Liability and
Related Ratios, Schedule of Changes in Net Pension Liability/(Asset)  and Related Ratios, and the Texas
County and District Retirement System –  Schedule of Employer Contributions be presented to
supplement the basic financial statements. Such information is the responsibility of management and,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic
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 basic financial
statements, and other knowledge we obtained during our audit of the basic 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.





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Other Information

Management is responsible for the other information included in the annual report. The other
information comprises the Introductory Section and Other Information sections but does not include the
basic financial statements and our auditor’ s report thereon. Our opinion on the basic  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  basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic 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.




March 28,  2024








































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Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

This  section of the  Toll Road Authority  Enterprise Fund  of Harris County  financial statements presents
management’s discussion and analysis (“MD&A”) of the financial performance of the Harris County Toll
Road Authority (“Authority”) during the fiscal year en  ded September 30, 2023.

In January 2021, Commissioners Court approved changing the fiscal year for Harris County and the
Authority from a fiscal year ending February 28/29 to a fiscal year ending September 30, in calendar year
2022. At  that time, the financial statements  were  presented for a seven-month period of March 1, 2022
through September 30, 2022.  The terms “prior  period” or “previous  period” used throughout this report
represent the seven  -month period ended September 30  , 2022.

The Authority is an enterprise fund of Harris County, Texas (the “County”) and is included in the County’s
financial statements.  This analysis presents information about the Authority and its operations and activities
only and is not intended to provide information about the entire County. Please read this section in
conjunction with the financial statements and related footnotes following this section.

FINANCIAL HIGHLIGHTS

•  Total net position is  comprised of the following:

  (1)  Net investment in capital  assets  of $1,064,941  ,013,  includes total capital assets, less accumulated
  depreciation/amortization  , less all outstanding principal of capital-related borrowings, capital
  related liabilities, plus capital-related deferred outflows and any unspent bond proceeds.This
  category of net position  increased $131,092  ,202 from the previous period, primarily due to various
  ongoing construction projects throughout the County related to the  Authority.

  (2)  Net position of $255,731  ,53  7 is  restricted by constraints imposed from outside the Authority such
  as debt obligations, laws, or regulations. Restricted net position  decreased  by $177,573,206  from
  the prior period primarily  due to the decrease in restricted cash needed for debt service.

  (3)  Unrestricted net position  of  $609  ,544,819  represents  the portion available to meet ongoing
  obligations of the Authority.  Unrestricted net position  increased  $87  ,275,29  4  from the previous
  period.
  Net  Position Comparison


  1,000,000,000

  800,000,000

  600,000,000

  400,000,000

  200,000,000

  -
  Net investment in capital assets  Restricted net position  Unrestricted net position
  9/30/2023  9/30/2022



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Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is  intended to serve as an introduction to the Authority’s basic financial
statements.  The Authority’s basic financial statements  are comprised of 1) Financial Statements  and 2)
Notes to the Financial Statements.

Financial Statements  for the Authority include the Statement of Net Position  , the Statement of Revenues,
Expenses and Changes in Net Position, and the Statement of Cash Flows.  Since the Authority is an
enterprise fund, its financial statements are presented with a flow of economic resources measurement focus
and use the accrual basis of accounting.  Funds are a self -balancing set of accounts used to maintain control
over resources that have been segregated for specific activities or objectives.  Fund accounting is  used to
account for resources that are segregated for specific purposes in accordance with special reg  ulations,
restrictions, or limitations.  The Authority is used to account for the acquisition, operation and maintenance
of toll roads within Harris County.

Notes to the Financial Statements  provide additional information that is essential to a full understanding
of the data provided in the financial statements.  The notes can be found  beginning on page 18  of this report.

Restatement: Subsequent to  the issuance of the financial statements for the period ended September 30,
2022, the Authority identified two errors.  The 2023 beginning net position has been restated as a result of
errors in construction in progress.  See related information within Footnote 13.

FINANCIAL ANALYSIS

The total net position  of the Authority  as of September 30,  2023  was $1,9  30,217,  369  and  $1,889  ,423,079
as of September  30,  202  2.  Revenues exceeded expenses  and transfers out,  increasing  net  position  by
$40,794,290  from last year  .

  Harris County Toll Road Authority Enterprise Fund
  Condensed Statement of Net Position
  September 30, 2023 and September 30, 2022
  (Amounts in thousands)

  9/30/2023  9/30/2022
  Current assets  1,181,479$  1,081,529$
  Capital assets, net  3,322,409  3,213,949
  Other non-current assets  177,194  347,981
  Total assets  4,681,082  4,643,459

  Deferred outflows of resources  93,152  114,360

  Current liabilities  365,386  337,017
  Non-current liabilities  2,423,003  2,443,217
  Total liabilities  2,788,389  2,780,234

  Deferred inflows of resources  55,628  88,162

  Net position:
  Net investment in capital assets  1,064,941  933,849
  Restricted  255,731  433,305
  Unrestricted  609,545  522,269
  Total net position  1,930,217$  1,889,423$


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Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

The largest portion of the Authority’s current  fiscal year net position is net investment in capital assets.
The remaining balance of the Authority’s current  fiscal year net position represents unrestricted  ,which is
used for the ongoing operations of the Authority,and restricted net position, which is subject to external
restrictions on how it may be used. The Authority’s restricted net position is for capital projects, debt
service, and operating reserve per debt covenant  s and other purposes.

The following table reflects how the Authority’s  net position  changed during the year  :

  H arris  C o unty To ll R o ad A utho rity Ente  rpris  e  Fund
  State  me  nt o f R e  v e  nue  s  ,  Ex pe  ns  e  s  and C hang e  s  in N e  t Po s  itio n
  (I n Tho us  ands  )
  Fo r the  Fis  c al Ye  ar Ende  d Se  pte  mbe  r 3 0 ,  2 0 2 3  and the  Pe  rio d Ende  d Se  pte  mbe  r 3 0 ,  2 0 2 2

  9/30/2023  9/30/2022
  R e  ve  nue  s :
  O pe r a ting r e ve nue s :
  Toll r e ve nue  896,351$  532,151$
  N onope r a ting R e ve nue s :
  I nve s tme nt inc ome  36,901  1,562
  Lease income  8  5
  Mis c e lla ne ous  inc ome  1,944  1,653
  Ga in on dis pos a l of  c a pita l a s s e ts  -  182
  Tota l r e ve nue s  935,204  535,553
  Expe  ns e  s :
  O pe r a ting Expe ns e s :
  Salaries  80,707  40,502
  Ma te r ia ls  a nd s upplie s  29,376  13,233
  Services and fees  213,417  116,964
  U  t  ilit  ie  s  4,255  2,000
  Tr a ns por ta tion a nd tr a ve l  4,356  2,430
  D e pr e c ia tion a nd a mor tiza tion  113,765  56,457
  N onope r a ting Expe ns e s :
  I nte r e s t e xpe ns e  73,092  50,466
  Debt service fees  1,435  1,540
  A mor tiza tion e xpe ns e  1,315  1,677
  Los s  on dis pos a l of  c a pita l a s s e ts  3,392  -
  Tota l e xpe ns e s  525,110  285,269

  Income before transfers  410,094  250,284
  Tr a ns f e r s  out  ( 369,300)  ( 123,908)
  C ha nge  in ne t pos ition  40,794  126,376
  N e t pos ition -  be ginning of  ye a r  ( a s  r e s ta te d, s e e  N ote  13)  1,889,423  1,763,047
  N e t pos ition -  e nding  1,930,217$  1,889,423$


Revenues

Total revenues  for  fiscal year 2023  were $935  ,204,714,  an  increase  of $399,651  ,047  compared to the
previous fiscal year.  Revenues  for the period ended September 30,  2022  were $535,553,667.  This increase
was largely related to the return to a  full 12 month  reporting period.


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Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

The largest revenue source is toll revenue of $ 896,  351,094  or  95.  8% of total revenues. This  revenue
category  increased  $364,  199,796  from  the period ended September 30, 202  2.This  increase  was largely
related to the return to a full 12-  month reporting period.

Investment income  for  fiscal year 2023  totaled $36,900  ,982  and comprises 4.  0% of total revenues.  This
revenue source increased by $35,338  ,564  compared to $1,562,418 for the period ended September 30, 2022  ,
due to a  n  increasein  interest earned from  investments.  Other revenues totaled $  1,952  ,638  or 0.2  % of total
revenues.  Other revenues  include  lease revenue of $8,  479,  and miscellaneous revenue of  $1,944  ,159  f or
reimbursements and recovery  of revenue losses.



  REVENUES BY SOURCE
  Fiscal Year Ended September 30,  2023
  Toll Revenue
  95.8%










  Other  Investment Income
  0.2%  4.0%



Expenses

For the fiscal year ended  September  30,20  23, expenses totaled $525,  110,424  a  n increase of $239  ,840,120
compared to the prior period.  For the prior period ended September 30, 2022, expenses totaled
$285,270,304  .

Services and fees of $213,  416,742  is the largest expense category and is 40.  6% of total expenses. This  is
an increase of $96  ,452,276  from the prior period ended September 30, 2022.  This increase is largely related
to the return to a full 12-  month reporting period.

Interest expense of  $73,091,761  is  13.9  % of total expenses. Interest expense reflects the interest and fees
incurred on outstanding debt balances and activities during the year.

Salaries  expense  is  $80,707,014  or  15.4  % of  total expenses. This represents an increase of $40,205,146
over the prior period ended September 30, 2022.  This increase is largely related to the return to a full 12  -
month reporting period.

The remaining 30.1  %  of expenses  represent  depreciation (21  .7%  ), and  other expenses (8.4  %)  which
consists of outlays relative to  materials and supplies, utilities, transportation and travel, bond refunding  loss



  11


=== PDF PAGE 18 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

amortization, loss on disposal of capital  assets,  and debt service fees.  All of these expense categories are
necessary for theoperation of the toll road.

  EXPENSES
  For the Fiscal Year Ended September 30, 2023


  Depreciation
  21.7%

  Interest expense
  13.9%


  Materials &
  Supplies
  5.6%


  Utilities
  0.8%
  Other
  8.4%
  Transportation
  & Travel
  0.8%

  Debt service
  0.3%
  Loss  on  capital assets
  0.6%
  Bond
  Salaries  Refunding
  15.4%  0.3%
  Services  and fees
  40.6%

Transfers

Transfers out in the amount of $369  ,300,  000  consisted of transfers of surplus revenue of the Authority  ,
including the annual mobility transfer, approved by Commissioners Court in ac  cordance with the existing
Authority  bond indenture and Section 284.0031, Transportation Code, to pay or finance costs of roads,
streets, highways, or other related facilities that are not part of the  Authority’s  toll road system.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The Authority’s capital assets net of depreciation  /amortization  as of September  30, 2023  and  September
30, 2022,  amounted to $3,322  ,409,141  and $3,213,948  ,271,  respectively.  These capital assets include land,
construction in progress, intangibles,  buildings, equipment, and infrastructure.  The A  uthority’s  capital
assets, net of accumulated depreciation  /amortization  increased  $108  ,460,870  from  prior period ended
September 30, 2022.

  12


=== PDF PAGE 19 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

  Balance  Balance
  September 30, 2023  September 30, 2022
  Land  384,825,003$  383,609,851$
  Easement  1,989,062  1,989,062
  Construction in progress  1,007,521,731  1,055,326,095
  License agreement  237,500,000  237,500,000
  Intangible Assets - software  43,537,966  42,470,466
  Land improvements  18,865,805  18,865,805
  Infrastructure  3,599,020,502  3,370,887,637
  Other tangible assets  6,898,941  7,489,687
  Buildings  20,728,052  20,728,052
  Equipment  58,381,234  60,309,328
  Lease Right-to-use Assets  28,726,247  4,070,753
  Subscription Right-to-use Assets  12,026,238  -
  5,203,246,7365,420,020,781
  Less:  Accumulated depreciation/amortization  (2,097,611,640)  (1,989,298,465)
  Totals  3,322,409,141$  3,213,948,271$

  For further information regarding capital assets, see Note 6 to the financial statements.

Long-term liabilities

At the end of the fiscal year  , the balance of the Authority’s  total  outstanding  long-  term liabilities  was
$2,538,878,350.Refer to Note  7  to the financial statements for further detail on the Authority’s long-  term
liabilities.

  Outstanding at  Outstanding at
  September 30, 2023  September 30, 2022
  Bonds payable  2,245,527,863$  2,370,243,599$
  Commercial paper payable  111,930,000  36,600,000
  Compensatory time payable  1,522,873  1,501,867
  Lease payable  25,809,497  3,541,930
  SBITA payable  8,326,158  12,026,238
  Total OPEB liability  120,276,191  117,667,442
  Hedging derivative instruments  -  16,344,226
  Net pension liability  24,261,768  -
  Pollution remediation obligation  1,224,000  -
  Totals  2,538,878,350$  2,557,925,302$
Note: There was no Net pension liability as of September 30, 2022 as it was net pension asset.  See note 8
for further information regarding this change.







  13


=== PDF PAGE 20 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2023

The  Authority  has a continuing goal to upgrade or maintain the  Authority’s debt rating.  The bond rating
services of Moody’s Investor’s Service, Inc., Standard & Poo  r’s Ratings Services, and Fitch IBCA, Inc.
have assigned the Authorit  y long term bond ratings of A  a2,  and AA, respectively, for First Lien Bonds and
Aa1, AA-  , and AA, respectively, for the Senior Lien Revenue Bonds.

See  Note  8  and Note 9  to the financial statements for further information on the County’s  Net Pension
Liability/(  Asset) and Total OPEB Liability.

ECONOMIC FACTORS


  •  Harris County has a vibrant and diverse economy driven largely by the region’s energy industry,
  international export and import shipping through the Port of Houston, two major airports, the
  Medical Center, and a variety of other industries.  These other industries primarily include banking,
  technology, construction, manufacturing,and education.
  •  The Houston region has experienced dramatic changes in its population size and composition over
  the last few decades, and these trends are expected to continue.  In the 2020  , the Houston region
  had  7.2  million residents and 3.5  million jobs.  According to  a forecast provided by the Houston
  Galveston Area Council, population  is expected to reach 11.2 million by 2050, growing by nearly
  5 million people over the next 35 years (2015-  2050).  That is an average increase of  1.6  percent
  growth each year. Similarly for jobs, the region is expected to create an additional 1.5 million jobs.
  Theseunderlying factors drive strong demand for transportation infrastructure in the region.

  •  METRO, a regional transit authority, currently operates  an extensive bus  and rail  fleet serving
  Harris County and the City of Houston. METRO  also  offers “park  -and-ride” services, which
  include free automobile parking at suburban METRO  lots and bus service to and from Houston’s
  various employment centers.  METRO’s  High Occupancy Toll (“HOT”) lanes and expanded rail
  service provide some  additional alternatives to the Toll RoadSystem.

Major Construction Projects by  the Authority:
The Authority continues to move forward with projects authorized by Commissioners Court including the
Hardy Toll Road Downtown Connector, the Ship Channel Bridge, the widening of portions of the Sam
Houston Tollway, and completion of the Tomball Tollway.

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the Authority’s finances for all those with
an interest in the Authority’s finances.  Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the County  Auditor’s Office, 1001
Preston, Suite 800, Houston, Texas 77002, or visit the  County’s website at  www.co.harris.tx.us.












  14


=== PDF PAGE 21 ===
BASIC FINANCIAL STATEMENTS

=== PDF PAGE 22 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  STATEMENT OF NET POSITION
  SEPTEMBER 30, 2023

ASSETS
Current assets:
  Cash and cash equivalents  456,402,745$
  Investments  599,574,816
  Receivables, net  17,614
  Accrued interest receivable  3,461,403
  Other receivables, net  117,211,061
  Due  from other funds  142,700
  Prepaids and other assets  2,785,168
  Inventories  1,883,505
  Total current assets  1,181,479,012
Non-current assets:
  Restricted cash and cash equivalents  136,763,882
  Restricted investments  40,422,281
  Notes receivable  7,581
  Capital Assets:
  Land and construction in progress  1,394,335,796
  License agreement/Intangibles, net of amortization  186,001,780
  Other capital assets, net of depreciation  1,742,071,565
  Total non-current assets  3,499,602,885
  Total assets  4,681,081,897
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refundings  35,624,688
Pension contributions after measurement date  5,644,855
Differences between expected and actual pension experience  448,309
Net difference between projected and actual earnings on pension assets  4,786,530
Changes of pension assumptions  7,581,079
Changes of OPEB assumptions and differences between
expected and actual experience  39,066,945
Total deferred outflows of resources  93,152,406
LIABILITIES
Current liabilities:
  Vouchers payable  68,369,827
  Accrued payroll  4,999,150
  Retainage payable  17,081,749
  Customer deposits  160,106
  Due to primary government  22,638,913
  Due to other governmental units  40,985,184
  Unearned revenue  95,275,870
  Current portion of long-term liabilities  115,875,518
  Total current liabilities  365,386,317
Non-current liabilities:
  Bonds payable  2,140,403,757
  Pollution remediation payable  1,224,000
  Commercial paper payable  111,930,000
  Compensatory time payable  759,548
  Lease liability  21,928,756
  Subscription liability  4,324,812
  Total OPEB liability  118,170,191
  Net pension liability  24,261,768
  Total non-current liabilities  2,423,002,832
  Total liabilities  2,788,389,149
DEFERRED INFLOWS OF RESOURCES
Differences between expected and actual pension experience  1,554,334
Changes of OPEB assumptions  54,069,211
Leases  4,240
Total deferred inflows of resources  55,627,785
NET POSITION
Net investment in capital assets  1,064,941,013
Restricted for capital projects  9,847,849
Restricted for debt service  157,995,081
Restricted for bond covenant and other purposes  87,888,607
Unrestricted  609,544,819
Total net position  1,930,217,369$


  See notes to the financial statements.
  15

=== PDF PAGE 23 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023



OPERATING REVENUE
  Toll revenue  896,351,094$
  Total operating revenue  896,351,094

OPERATING EXPENSES
  Salaries  80,707,014
  Materials and supplies  29,375,689
  Services and fees  213,416,742
  Utilities  4,255,000
  Transportation, travel, and other administration  4,356,186
  Depreciation and amortization  113,765,482
  Total operating expenses  445,876,113

  Operating income  450,474,981

NONOPERATING REVENUES (EXPENSES)
  Investment income  36,900,982
  Lease income  8,479
  Interest expense  (73,091,761)
  Debt service fees  (1,435,466)
  Gain (loss) on disposal of capital assets, net  (3,392,016)
  Bond refunding loss amortization  (1,315,068)
  Miscellaneous income  1,944,159
  Total nonoperating revenues (expenses)  (40,380,691)

  Income before transfers  410,094,290

  Transfers out  (369,300,000)

  Change in net position  40,794,290

Net position, beginning of year (as restated, Note 13)  1,889,423,079
Net position, end of year  1,930,217,369$

















  See notes to the financial statements.
  16

=== PDF PAGE 24 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  STATEMENT OF CASH FLOWS
  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES
  Receipts from customers  878,747,573$
  Payments to employees for salaries and benefits  (67,753,144)
  Payments to suppliers and providers  (256,589,409)
  Receipts from other governmental units  5,139,907
  Receipts from other sources  1,944,159
Net cash provided by operating activities  561,489,086

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
  Transfers to other funds  (369,300,000)
Net cash used for noncapital financing activities  (369,300,000)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
  Receipts from lease of capital assets  33,687
  Acquisition and construction of capital assets  (220,463,962)
  Proceeds from sale of capital assets  643,553
  Principal paid on capital debt  (87,520,000)
  Interest paid on capital debt  (97,107,720)
  Bonds payable proceeds  135,093,203
  Lease payble  22,267,567
  Subscription payable  8,326,158
  Hedging deriviative instruments  (16,344,226)
  Escrow paid on refunded debt  (145,570,000)
  Commercial paper proceeds  75,330,000
  Pollution payable  1,224,000
  Bond issuance cost  (1,435,466)
Net cash used for capital and related financing activities  (325,523,206)

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of investments  (709,631,128)
  Proceeds from sale and maturity of investments  927,727,055
  Interest on investments  35,718,478
Net cash provided by investing activities  253,814,405

Net decrease in cash and cash equivalents  120,480,285

Cash and cash equivalents, beginning  472,686,342
Cash and cash equivalents, ending  $  593,166,627

Reconciliation of operating income to net cash
  provided by operating activities:
Operating income  $  450,474,981

  Adjustments to reconcile operating income to net cash
  provided by (used for) operating activities:
  Depreciation and amortization expenses  113,765,482
  Other nonoperating revenues  1,944,159
  Decrease in accounts receivable  11,174
  (Increase) in other receivables  (22,852,335)
  (Increase) in prepaid items  (1,764,253)
  Decrease in inventories  3
  Decrease in pension deferred outflows  1,499,296
  Decrease in OPEB deferred outflows  7,918,622
  (Decrease) in vouchers payable  (14,159,542)
  Increase in accrued payroll  970,552
  (Decrease) in retainage payable  (11,107,971)
  Increase in due to primary government  21,845,971
  Increase in due to other governmental units  5,139,907
  Increase in customer deposits  435
  Increase in unearned revenue  5,237,205
  Increase in compensated absences  17,229
  Increase in net pension liability/Asset  32,593,069
  Increase in total OPEB liability  2,480,749
  (Decrease) in pension deferred inflows  (28,758,362)
  (Decrease) in OPEB deferred inflows  (3,767,285)
  Total adjustments  111,014,105
Net cash provided by operating activities  $  561,489,086

Noncash capital and related financing and investing activities:
(Decrease) in fair value of hedging derivatives  $  (16,344,226)
Incease  in fair value of investments  9,177,116
Purchases of capital assets on account  (7,249,612)


  See notes to the financial statements.
  17

=== PDF PAGE 25 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  Organization  -  The Harris County Toll Road Authority (the “Authority” or “Toll Road”) was created by
  Harris County, Texas, (the “County”) by order of the Harris County Commissioners Court on September  22,
  1983, with the Commissioners Court designated as the governing body and the operating board of the
  Authority.  The Authority is a department and fund of the County and is charged with overseeing the
  acquisition, construction, improvement, operation and maintenance of the County toll road facilities (the
  “Toll Road Pro  ject”).  The Commissioners Court has full oversight responsibility for the Authority, and the
  Toll Road Project is an integral part of the County’s financial statements.  Construction of the Hardy Toll
  Road, the Sam Houston Tollway, Westpark Tollway, Fort  Bend Parkway extension (Spur 90A),  Tomball
  Tollway,  and acquisition of the JesseH. Jones Toll Bridge, now referred to as the “Sam Houston Ship
  Channel Bridge” (the “Toll Roads”) have been financed with a combination of unlimited tax and subordinate
  lien revenue bonds and senior lien revenue bonds.  When all of the debt service, as discussed in Note7, has
  been paid or provided for in a trust fund, the Toll Roads will become a part of the State of Texas Highway
  System.

  In January 2021, Commissioners Court approved changing the fiscal year for Harris County and the
  Authority from a fiscal year ending February 28/29 to a fiscal year ending September 30, with the transition
  to begin in calendar year 2022. At that time, the financial statements were presented f  or a seven-month period
  of March 1, 2022 through September 30, 2022.  The terms “prior period” or “previous period” used
  throughout this report represent the seven-  month period ended September 30, 2022.

  Implementation of New Standards -  In the current fisc  al year, the Authority implemented the following
  standards issued by the Governmental Accounting Standards Board (“GASB”):

  GASB Statement No. 94, Public  -Private and Public-Public Partnerships and Availability Payment
  Arrangements  –  (“GASB 94”), primary o  bjective of this Statement is to improve financial reporting by
  addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in
  this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator
  (a governmental or nongovernmental entity) to provide public services by conveying control of the right to
  operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset),
  for a period of time in an exchange or exchange-  like transaction. GASB 94 was  implemented by the
  Authority in fiscal year September 30, 2023 and had no effect on the Authority’s financial statements  .

  GASB Statement No. 96, Subscription-Based Information Technology Arrangements  –  (“GASB 96”),
  provides guidance on the accounting and financial reporting for subscription-based information technology
  arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2)
  establishes that a SBITA results in a right-to-use subscription asset—  an intangible asset—  and a
  corresponding subscription liability; (3) provides the capitalization criteria for outlays other than
  subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures
  regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established
  in Statement No. 87, Leases, as amended. GASB 96 was implemented by the Authority, resulting in
  recognition of $11,555,814  of right-to-use subscription assets and subscription payable as of October 1,
  2022 within the statement of net position  to conform to the new standard.

  Basis of Presentation and Measurement Focus-  The accompanying basic financial statements have been
  prepared on the full accrual basis of accounting as prescribed by the GASB.  Full accrual accounting uses a
  flow of economic resources measurement focus.

  The basic financial statements of the Authority consist of Stateme  nt of Net Position, Statement o  f Revenues,
  Expenses and Changes in Net Position, Statement of Cash Flows, and Notes to the Financial Statements.

  18

=== PDF PAGE 26 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023


  Enterprise Fund  –  Revenues are recognized in the period earned.  The Authority’s operating revenues are
  derived from charges to users of the Toll Roads in the County.  When both restricted and unrestricted
  resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted
  resources to the extent they are needed.

  Expenses are recognized in the period incurred.  The Authority’s operating expenses consist primarily of
  direct charges attributable to the operations of the Authority, including depreciation.  Interest expense and
  other similar charges not directly related to the Authority’s operations are  reported as non-  operating
  expenses.

  Deposits and Investments  –  Cash and cash equivalents include amounts in demand deposits as well as short-
  term investments with a maturity date of 90 days or less from date of purchase. All investments are recorded
  at  amortized cost or at fair value based upon quoted market prices as of the Authority’s  period ended, with
  the difference between the purchase price and market price being recorded as investment income /loss.

  Restricted Assets and Restricted Net Position –  Certain assets of the Authority are required to be segregated
  under terms of various bond indentures.  These assets are legally restricted for certain purposes, including
  operations and maintenance, debt service and construction. The Authority purchased surety policies to satisfy
  certain reserve fund requirements.  During the fiscal year  ended  September 30, 2023, the Authority was in
  compliance with these covenants.

  In the financial statements, restricted net position is reported for amounts that are externally restricted by 1)
  creditors (e.g. bond covenants), grantors, contributors, or laws and regulations of other governments or 2) law
  through constitutional provision or enabling legislation.

  Inventories  –  Inventory is stated at the lower of cost or market value, using the first-in, first-out  method.
  EZ tags are recorded as inventory based on the number of tags by type (sticker, license plate, or motorcycle)
  as of September  30, 202  3  multiplied by the cost per tag type.

  Capital Assets –  Capital assets include land, construction in progress, intangibles, buildings, equipment and
  infrastructure that are used in the Authority’s operations and benefit more than a single fiscal year.
  Infrastructure assets are long-lived assets that are generally stationary in nature and can typically be
  preserved for a significantly greater number of years than other capital assets.  Infrastructure assets of the
  Authority include roads, bridges, sewers and right-of-way.

  Capital assets of the Authority are defined as assets with individual costs of $5,000 or more and estimated
  useful lives in excess of one year.  Exceptions to the $5,000 capitalization threshold are as follows:  all land
  and easements over $1 are capitalized.  Purchased software greater than $100,000 is capitalized and
  internally developed software greater than $1,000,000 is capitalized.  The threshold for capitalizing buildings
  is $100,000 and the threshold for infrastructure ranges from $25,000 to $250,000, depending on the asset.

  All capital assets are stated at historical cost or estimated fair value at the date of purchase.  Donated fixed
  assets are stated at their estimated acquisition value on the date donated.  Depreciation is computed using
  the straight-line method over the estimated useful life of the asset ranging from 3 to 45 years.  Infrastructure
  is depreciated over a 30-  year useful life. Equipment is depreciated over 3 to 20 years, depending on the type.
  Buildings are depreciated over 45 years.  Amortization of the intangible license agreement is based upon the
  revenues received and will continue until the license in fully amortized.

  Harris County (acting through the Harris County Toll Road Authority) entered into a tri-party agreement in
  March 2003 with the Texas Department of Transportation (“TxDOT”) and Federal Highway Administration
  to participate in the reconstruction of a portion of the IH10 Katy Freeway.  Under this agreement, the
  19

=== PDF PAGE 27 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Authority funded $237.5 million for the license to the real property for the right to operate a toll facility
  known as the Katy Tollway (Managed Lanes) and paid an additional $12.5 million for the design and
  construction, and other allowable expenses related to such toll facility.

  In April 2012, the County approved a memorandum of understanding with TxDOT  (the “MOU”) that
  contained a general outline regarding the development, funding, construction, operation and maintenance of
  various transportation projects in the region, including proposed toll projects along US 290 and SH 288 and
  Grand Parkway toll segments being constructed by TxDOT.  The County’s responsibilities were further
  clarified in subsequent correspondence between the parties in March 2018 and June 2019. As a result of the
  MOU and subsequent negotiations with TxDOT, the County agreed to contribute an aggregate of $400
  million in Project revenues, in multiple installments over the span of several years, to assist in the funding
  of certain TxDOT projects in the region, including the reconstruction of the US 290 corridor, frontage road
  and watershed improvements along SH 249, and interchange improvements at SH 249 and the Grand
  Parkway and SH 225 and Beltway 8.

  The County also agreed to waive its primacy development rights for certain toll projects in the region,
  including a proposed toll project along US 290 that was ultimately removed from the corridor reconstruction
  plans and the northern segment of a toll project in the SH 288 corridor that was ultimately financed and
  constructed by a private developer pursuant to a TxDOT comprehensive development agreement. In addition
  to agreeing to fund certain Medical Center related infrastructure in connection with the County’s waiver of
  primacy on the SH 288 toll project, TxDOT agreed that the County could provide tolling services on
  TxDOT’s tolled segments of the Grand Parkway, subject to a mutually agreeable fee. The County and
  TxDOT have had intermittent discussions about terms for a Grand Parkway tolling services agreement but
  to date have been unable to reach final agreement.

  Lease Assets –  Lease assets are initially recorded at the initial measurement of the lease liability, plus lease
  payments made at or before the commencement of the lease term, less any lease incentives received from
  the lessor at or before the commencement of the lease, plus initial direct costs that are ancillary to place the
  asset into service.  Lease assets are amortized on a straight  -line basis over the shorter of the lease term or the
  useful life of the underlying asset.

  Subscription Assets  –  Subscription assets are initially recorded at the initial measurement of the subscription
  liability, plus payments made at or before the commencement of the subscription term.  Subscription assets
  are amortized on a straight-line basis over the shorter of  the subscription term or the useful life of the
  underlying asset.

  Asset Impairments  -  The  Authority  evaluates capital and lease assets for impairment whenever events or
  circumstances indicate a significant, unexpected decline in the service utility of a capital and lease asset has
  occurred.  If a lease asset is tested for impairment and the magnitude of the decline in service utility is
  significant and unexpected, the capital asset historical cost and related accumulated depreciation are
  decreased proportionately such that the net decrease equals the impairment loss.

  No asset impairment was recognized during the fiscal year  ended September 30, 2023.

  Premiums (Discounts) on Bonds Payable  - Premiums (discounts) on bonds payable are amortized using the
  effective interest method over the term of the bonds.

  Risk Management - The Authority’s risk-  of-loss exposures include exposure to liability and accidental loss
  of real and personal property as well as human resources.  Toll Road operations involve a variety of  high-
  risk activities including, but not limited to, cash collections, construction and maintenance activities.  The
  County’s Office of Risk Management is responsible for identifying, evaluating and managing the Authority’s
  risk in order to reduce the exposure from liability and accidental loss of property and human resources.  The
  20

=== PDF PAGE 28 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Authority is treated as a County department by the County’s Risk Management Office and is assessed
  premiums and charges similar to those assessed to other County departments.

  The Authority is covered by the Harris County workers’ compensation program.  The County is self  -insured
  for workers’ compensation medical and indemnity payments.  Claims adjusting services are provided by a
  third-party administrative claims adjusting service.  Interfund premiums on workers’ compensation are
  determined by position class code, at actuarially determined rates.

  The County has excess insurance coverage for medical  liability.  No claims settled during the last three fiscal
  years have exceeded this coverage.

  Through the County, the Authority provides medical, dental, vision and basic life and disability insurance to
  eligible employees  and retirees.  The Authority pays a flat monthly rate of $1,437.57 per employee based on
  the estimated full cost of health benefits.

  The Authority’s group insurance premiums, as well as employee payroll deductions for premiums for
  dependents and optional coverage, are paid into the County’s Health Insurance Management Fund, which in
  turn makes disbursements to contracted  insurance providers based upon monthly enrollment and premium
  calculations.

  Billings to the Authority for property insurance, professional liability insurance and crime and fidelity
  policies are handled through the County’s General  Fund as are payments to  the insurance carriers.  Claim
  payments made up to the deductible limit are expensed by the Authority when paid by the General  Fund.
  Payments for the Authority’s general, vehicle and property damage liability claims, for which the County is
  self-insured,  are made through the General  Fund and billed to the Authority.

  Compensated Absences  - Accumulated compensatory absences are recorded as an expense and liability as
  the benefit accrues for the employee.

  Regular employees accrue  13  days of sick leave per year.  Sick leave benefits are recognized as they are used
  by the employees.  Employees may accumulate up to 720 hours of sick leave.  Unused sick leave benefits
  are not paid at termination.  Employees accrue from 3.08 to 7.7hours of vacation per pay period depending
  on years of service and  may accumulate a maximum of  280 hours of vacation benefits.  Upon termination,
  employees are paid the balance of unused vacation benefits.

  Non-exempt employees earn compensatory time at one and o ne-half times their worked hours in excess of
  40 hours per week.  Non-  exempt employees may accrue up to 240 hours of compensatory time.
  Compensatory time in excess of the 240 hour maximum is paid at the regular rate of pay on the current  pay
  period.  Upon  termination, non-  exempt employees will be paid for any compensatory time balances.

  Exempt employees earn compensatory time at a rate of one times their worked hours in excess of 40 hours
  a week.  Exempt employees can accumulate up to 240 hours of compensatory time.  Upon termination,
  exempt employees are paid one-half of the compensatory time earned at the wage rate at time of termination.

  Statement of Cash Flows  –  All highly liquid investments (including restricted assets) with a maturity of
  three months or less when purchased are considered to be cash equivalents.

  Deferred Outflows/Inflows of Resources –  In addition to assets, the statement of financial position reports a
  separate section for deferred outflows of resources.  This separate financial statement element, deferred outflows
  of resources, represents a consumption of net assets that applies to a future period(s) and therefore,  will not be
  recognized as an outflow of resources (expense) until that time  .  The Authority’s deferred outflows, when
  applicable, consist of deferred charge on refundings, pension contributions after measurement date, difference
  21

=== PDF PAGE 29 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  between expected and actual pension  experience,  net difference between projected and actual earnings on
  pension assets,  changes of pension assump  tions, and  changes of OPEB assumptions and difference between
  expected and actual experience.  A deferred charge on refunding results from the difference in the carrying value
  of refunded debt and its reacquisition price.  This amount is deferred and amortized over the shorter of the life
  of the refunded debt or refunding debt.  The pension contributions after measurement date are deferred and
  recognized in the following fiscal year.  Pension and OPEB assumption  changes, differences between expected
  and actual experience  and net differences between projected and actual earnings for pension  are amortized over
  a closed 5-year period.

  In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of
  resources.  This separate financial statement element, deferred inflows of resources, represents an acquisition of
  net  assets  that applies to  a future period(s) and therefore,  will not be recognized as an inflow of resources
  (revenue) until that time.  These amounts are deferred and recognized as an inflow of resources in the period
  that the amounts become available. The Authority’s deferred inflows, when applicable, consist of the  deferred
  revenue  related to leases (related to GASB 87)  ,  the differences between expected and actual experience for
  Pension and changes of OPEB  assumptions for which are amortized over the average of the expected remaining
  service lives of all employees that are provided with pension benefits through the pension plan (active employees
  and inactive employees).  Leases are amortized over the life of the lease.

  Use of Estimates  - The preparation of financial statements in conformity with generally accepted accounting
  principles requires management to make estimates and assumptions that affect the reported amounts of assets
  and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and
  the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from
  these estimates.

  2.  DEPOSITS AND INVESTMENTS

  Deposits:Chapter 2257 of the Texas Government Code is known as the Publ  ic Funds Collateral Act.  This act
  provides guidelines for the amount of collateral that is required to secure the deposit of public funds.  Federal
  Depository Insurance (FDIC) is available for funds deposited at a financial institution up to a maximum of
  $250,000 each for demand deposits, time and savings deposits, and deposits pursuant to indenture.  The Public
  Funds Collateral Act requires that the deposit of public funds be collateralized in an amount not less than the
  total deposit, reduced by the amount of FDIC insurance available.

  The custodial credit risk for deposits is the risk that the Authority will not be able to recover deposits that are in
  the possession of an outside party.  Deposits are exposed to custodial credit risk if they are not insured or
  collateralized.  As of September  30, 2023, the balance per various financial institutions was $310,476,181.  The
  Authority’s deposits are not exposed to custodial credit risk since all deposits are either covered by FDIC
  insurance or an irrevocable standby letter of credit with the Federal Home Loan Bank, in accordance with the
  Public Funds Collateral Act.

  Investments:Chapter 2256 of the Texas Government Code is known as the Public Funds Investment Act.  This
  act authorizes Harris County to invest its funds pursuant to a written investment policy which primarily
  emphasizes the safety of principal and liquidity, and addresses investment diversification, yield, and maturity.

  The Harris County Investment policy is reviewed and approved annually by Commissioners Court.  The
  Investment Policy includes a list of authorized investment instruments, a maximum allowable stated maturity
  by fund type, and the maximum weighted average maturity of the overall portfolio.  Guidelines for
  diversification and risk tolerance are also detailed within the policy.  Additionally, the policy includes specific
  investment strategies for fund groups that address each group’s investment options and describes the priorities
  for suitable investments.

  22

=== PDF PAGE 30 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  AUTHORIZED INVESTMENTS

  Funds of Harris County (including Authority funds) may be invested as authorized by the Public Funds
  Investment Act which is located in Chapter 2256 of the Texas Government Code.  Allowable investments
  include:

  1.  Direct obligations of the United States, its agencies and instrumentalities.

  2.  Other obligations, the principal and interest of which are unconditionally guaranteed, insured or backed
  by the full faith and credit of the State of Texas, the United States, or any obligation fully guaranteed or
  fully insured by the FDIC.

  3.  Direct obligations of the State of Texas or its agencies provided the agency has the same debt rating as
  the State of Texas.

  4.  Obligations of states, agencies, counties, cities, and other political subdivisions located in the United
  States, rated not less than A, or its equivalent, by a nationally recognized investment rating firm.

  5.  Fully insured or collateralized certificates of deposit/share certificates issued by state and national banks,
  or a savings bank, a state or federal credit union (having its main or branch office in Texas) guaranteed
  or insured by the FDIC or  its successor; and secured by obligations in number 1 above.  In addition to
  the County’s authority to invest funds in certificates of deposit and share certificates as stated above,
  made in accordance with the following conditions is an authorized investment under Texas Gov’t. Code
  Section 2256.010(b): (1) the funds are invested by the County through a clearing broker registered with
  the Securities and Exchange Commission (SEC) and operating pursuant to SEC rule 15c3-  3 (17 C.F.R.
  Section 240.15c3-  3) with its main office or branch office in Texas and selected from a list adopted by
  the County as required by Section 2256.025; or a depository institution that has its main office or a
  branch office in this state and that is selected by the County; (2) the broker or the depository institution
  selected by the County arranges for the deposit of the funds in certificates of deposit in one or more
  federally insured depository institutions, wherever located, for the account of the County; (3) the full
  amount of the principal and accrued interest of each of the certificates of deposit is insured by the United
  States or an instrumentality of the United States; (4) the broker or depository institution selected by the
  County acts as custodian for the County with respect to the certificates of deposit issued for the account
  of the County.

  6.  Fully collateralized repurchase agreements, provided the County has on file a signed Master Repurchase
  Agreement detailing eligible collateral, collateralization ratios, standards for collateral custody and
  control, collateral valuation, and conditions for agreement termination.  The repurchase agreement must
  have a defined termination date and be secured by obligations in number 1 above.  It is required that the
  securities purchased as  part of the repurchase agreement must be assigned to the County, held in the
  County’s name, and deposited at the time the investment is made with the County’s custodian or with a
  third-party approved by the County.  Securities purchased as part of a repurchase agreement shall be
  marked-to-market no less than weekly.  All repurchase agreements must be conducted through a primary
  government securities dealer as defined by the Federal Reserve or a financial institution doing business
  in Texas.  Maturities shall be limited to 90 days.  The 90-  day limit may be exceeded in the case of
  flexible repurchase agreements (“  flex repos”) provided the investment type is specifically authorized
  within individual bond ordinances and final maturity does not exceed the anticipated spending schedule
  of bond proceeds.

  7.  Securities lending programs if the loan is fully collateralized, including accrued income, by securities
  described in Texas Gov’t. Code, Section 2256.009, by irrevocable bank letters of credit issued by a bank
  23

=== PDF PAGE 31 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  under the laws of the United States or any other state, continuously rated not less than A by at least one
  nationally recognized investment rating firm, or by cash invested in accordance with the Investment Act.
  Securities held as collateral must be pledg ed to the investing entity, held in the investing entity’s name,
  and deposited at the time the investment is made.  A loan must be placed through a primary government
  securities dealer or a financial institution doing business in Texas.  A loan must allow for termination at
  any time and must have a term of one year or less.

  8.  Commercial paper with a stated maturity of 270 days or less from the date of issuance, rated A  -1 or P-1
  or an equivalent rating by at least two nationally recognized agencies, and not under review for possible
  downgrade at the time of purchase.  Regardless of whether commercial paper is purchased directly from
  the issuer or from a broker/dealer in the secondary market, a competitive bid process is required, in which
  the  investment yield is compared to other available commercial paper having a comparable maturity and
  credit rating.  An exception may be made to the competitive offer process when seeking to purchase
  municipal commercial paper securities due to very limited quantity.

  9.  Local government investment pools with a dollar weighted average maturity of 60 days or less, approved
  through resolution of Commissioners Court to provide services to the County, continuously rated no
  lower than AAA or equivalent by at least one nationally recognized rating service.  The County may not
  invest an amount that exceeds 10 percent of the total assets of any one local government investment
  pool.  On a monthly basis, the Investment Officer shall review a list of securities held in th  e portfolio of
  any pool in which County funds are being held.  To be eligible to receive funds from and invest funds
  on behalf of the County an investment pool must furnish to the Investment Officer or other authorized
  representative an offering circular or other similar disclosure instrument that contains information
  required by Tex. Gov’t. Code Sec. 2256.016.  Investments will be made in a local government investment
  pool only after a thorough investigation of the pool and review by the Finance Committee.

  10.  A Securities and Exchange Commission (SEC) registered, no load money market mutual fund which has
  a dollar weighted average stated maturity of 60 days or less.  Furthermore, it must be rated not less than
  AAA or equivalent by at least one nationally recognized rating service and the County must be provided
  with a prospectus and other information required by the SEC Act of 1934 or the Investment Company
  Act of 1940.  The County may not invest an amount that exceeds 10 percent of the total assets of any
  one fund.  Investments will be made in a money market mutual fund only after a thorough investigation
  of the fund and review by the Finance Committee.

  11.Interest  -bearing banking deposits that are guaranteed or insured by: (A) the Federal Deposit Insurance
  Corporation or its successor; or (B) the National Credit Union Share Insurance Fund or its successor;
  and interest-bearing banking deposits other than described above if: (A) the funds invested in the banking
  deposits are invested through: (i) a broker with a main office or branch office in Texas that the County
  selects from a list of its governing body or designated investment committee adopts as required by
  Section 2256.025; or (ii) a depository institution with a main office or branch office in Texas that the
  County selects; (B) the broker or depository institution selected as described above arranges for the
  deposit of the funds in one or more federally insured depository institutions, regardless of where located,
  for the County’s account; (C) the full amount of the principal and accrued interest of the deposits is
  insured by the United States or an instrumentality of the United States; and (D) the County appoints as
  the custodian of the bank deposits issued for the County’s account: (i) the deposit  ory institution selected
  as described above; (ii) an entity described by Section 2257.041(d); or (iii) a clearing broker dealer
  registered with the Securities and Exchange Commission and operating under Securities and Exchange
  Commission Rule 15c3-  3 (17 C.F.R. Section 240.15c3  -3).



  24

=== PDF PAGE 32 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Summary of Cash and Investments
  The Authority’s cash and investments are stated at fair value or amortized cost.  The following is a summary of
  the Authority’s cash and investments at September  30, 2023  .

  Totals
  Cash and Cash Equivalents  456,402,745$
  Investments  599,574,816
  Restricted Cash and Cash Equivalents  136,763,882
  Restricted Investments  40,422,281
  Total Cash, Cash Equivalents &  $  1,233,163,724
  Investments

  The table below indicates the fair value and maturity value of the Authority’s investments as of September 30,
  2023, summarized by security type.  Also demonstrated are the percentages of the total portfolio, the modified
  duration in years, and the credit ratings for each summarized security type.

  C  re  di t
  M  o difie  d  R at ing
  Percentage  M  aturity  D  urat i o  n  S&  P/
  Se  c urity  Fair Value  o f Po rtfo lio  A mo  unt  (  Ye  ars  )  M  o o dy's  /Fitc h
  US Agency Notes
  FFCB  8,902,079$  0. 73%  9,000,000$  0. 0003  AA+/Aaa
  FH LB  227,422,694  18. 53%  232,000,000  0. 2535  AA+/Aaa
  FH LMC  16,677,605  1. 36%  17,000,000  0. 0017  AA+/Aaa
  Total US Agency Notes  253,002,378  258,000,000

  Commercial Paper
  BARCLAYS US-Disc  71,010,000  5. 79%  72,000,000  0. 0127  A 1/P  1
  GTA FUNDING DISC  1,976,896  0. 16%  2,000,000  0. 0000  A 1/P  1
  LA FAYETTE ASSET SEC DISC  1,998,220  0. 16%  2,000,000  0. 0000  A 1/P  1
  TMCC DISC  5,883,371  0. 48%  6,000,000  0. 0001  A 1+/P  1
  Total Commercial Paper  80,868,487  82,000,000

  Municipal Commercial Paper
  UNIV OF TEXAS DISC  24,732,840  2. 02%  25,000,000  0. 0012  A 1+/P  1
  Total Municipal Commercial Paper  24,732,840  25,000,000



















  25

=== PDF PAGE 33 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  C re  di t
  M  o difie  d  R at ing
  Percentage  M aturity  D urat i o  n  S& P/
  Se  c urity  Fair Value  o f Po rtfo lio  A mo unt  ( Ye  ars  )  M  o o dy's  /Fitc h
  Local Governments
  BIRDVILLE ISD TX 5  3,256,001$  0. 27%  3,245,000$  0. 0010  AA/AA+
  BLOOMINGDALE NJ UT GO  10,173,061  0. 83%  10,129,000  0. 0031  SP  -1
  COMAL ISD TX UT GO  1,254,100  0. 10%  1,250,000  0. 0003  AAA/Aaa
  CONROE ISD TX UT GO  1,710,701  0. 14%  1,710,000  0. 0005  AAA/Aaa
  GRAND P RAIRIE TX LT GO  3,091,326  0. 25%  3,160,000  0. 0026  AAA/AA+
  LAMAR ISD TX UT GO  994,720  0. 08%  1,000,000  0. 0003  AAA/Aaa
  LITTLE EGG HARBOR TWP  NJ  6,436,566  0. 52%  6,417,250  0. 0017  M I G 1
  LOUDON CO. VA REV  1,355,770  0. 11%  1,360,000  0. 0002  AA+/Aa1
  MET COUNCIL MINN MN WSTWTR  14,094,978  1. 15%  14,545,000  0. 0105  AAA/Aaa
  NORTH EAST ISD TX UT GO  554,719  0. 05%  565,000  0. 0006  AAA
  OREGON ST LOTTERY REV  3,639,023  0. 30%  3,750,000  0. 0039  AAA/Aa2
  P ALM BEACH CO FL REV  12,157,436  0. 99%  12,265,000  0. 0017  AAA/Aa1
  SAN ANTONIO TX LT GO  694,379  0. 06%  700,000  0. 0002  AAA/Aaa
  SAN FRANCISCO CITY & CO CA  2,051,840  0. 17%  2,000,000  0. 0027  AAA/Aaa
  SOUTHWEST ISD TX UT GO  775,921  0. 06%  780,000  0. 0002  AAA
  SP RING BRANCH ISD TX UT GO  8,025,440  0. 65%  8,000,000  0. 0022  AAA/Aaa
  ST O F MA SSA CH U SETTS  4,923,420  0. 40%  5,000,000  0. 0030  Aa1
  STATE OF MAINE GO  1,034,616  0. 08%  1,065,000  0. 0006  AA/Aa2
  STATE OF TX GO SER 21  7,800,000  0. 64%  7,800,000  0. 0000  AAA
  TEXAS A&M UNIV REV  3,889,982  0. 32%  4,195,000  0. 0113  AAA/Aaa
  UNIV OF MISSOURI REV  8,357,581  0. 68%  8,385,000  0. 0006  AA+/Aa1
  WACO ISD TX  1,046,243  0. 09%  1,100,000  0. 0008  Aaa
  WYANDOTTE KS UT GO  4,480,000  0. 37%  4,480,000  0. 0018  SP  -1
  Total Local Governments  101,797,823  102,901,250

  US Treasury Bills
  U  S  T  r  e  a  s  u r  y  B  ills  2,967,680  0. 24%  3,000,000  0. 0005  AA+/Aaa
  To ta l US  Tre a su ry  Bills  2,967,680  3,000,000

  US Treasury Notes
  U S Tr e a s ur y N ote s  175,550,995  14. 30%  181,000,000  0. 1318  AA+/Aaa
  Total US Treasury Notes  175,550,995  181,000,000

  Money Mark et Funds
  LO GI C  P  ool  35,620,941  2. 90%  35,620,941  N/A  AAAm
  Lone  Sta r  P  ool  61,033,788  4. 97%  61,033,788  N/A  AAAm/AAAmmf
  Te xa s  C la s s  P  ool  55,887,158  4. 55%  55,887,158  N/A  AAAm
  TRA - Cadence (DDA)  307,860,203  25. 08%  307,860,203  N/A  N/A
  MMF - TRA Trust DSR (BNYM)  127,959,360  10. 43%  127,959,360  N/A  N/A
  Total Money Mark et Funds  588,361,450  588,361,450
  Tota l I nve s tme nts  &  C a s h Equiva le nts  1,227,281,653  100. 00%  1,240,262,700$
  Demand and Time Deposits  5,882,071
  To tal C as  h,  C as  h Equiv ale  nts  &  $  1,233,163,724
  I nv e  s  tme  nts




  26

=== PDF PAGE 34 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Fair Value Measurements
  The County categorizes its fair value measurements within the fair value hierarchy established by general
  accepted accounting principles.  The hierarchy is based on the valuation inputs used to measure the fair value
  of the asset.  Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
  other observable inputs; Level 3 inputs are significant unobservable inputs.

  As of September  30, 2023, the County has the recurring fair value measurements for U.S. Agency Notes,
  Commercial Paper, Municipal Commercial Paper, Local Governments  , U.S. Treasury Notes and Bills totaling
  $638,920,20  3 all of which are valued using quoted prices for similar assets in active markets (Level 2 inputs).
  The Money Market Funds through External Investment Pools totaling $588,361,450  have been valued at
  amortized cost or  fair value in accordance with GASB No. 79.  The recorded position of the pool for Texas
  Class  is measured at net asset value to approximate fair value, which is designed to approximate the share
  value; however, the net asset value is not guaranteed or insured. For investment pools shown, TRA-Cadence
  Money Market Fund portfolio has been valued at fair value using Level 2 inputs.  The Lone Star and LOGIC
  are valued at amortized cost, which approximates fair value. TRA-  Demand Deposit Account at Cadence
  preserves cash and liquidity and is considered cash value.

  RISK DISCLOSURES

  Interest Rate Risk:  All investments carry the risk that changes in market interest rates will adversely affect the
  fair value of an investment.  Generally, the longer the maturity of an investment the greater the sensitivity of its
  fair value to changes in market interest rates.  One of the ways that the County manages its exposure to interest
  rate risk is by purchasing a combination of shorter and longer term investments and by matching cash flows
  from maturities so that a portion of the portfolio is maturing evenly over time as necessary to provide the cash
  flow and liquidity needed for operations.

  According to the County investment policy, no more than 50% of the portfolio, excluding those investments
  held for construction/capital projects, special revenue, flood control, proprietary and enterprise, Public
  Improvement Contingency, District Clerk Registry, County Clerk Registry, and bond reserves may be invested
  beyond three years.  Additionally at least 15% of the portfolio, excluding those investments held for future m ajor
  capital expenditures, debt service payments, bond fund reserve accounts, and capitalized interest funds, shall be
  invested in overnight instruments or in marketable securities which can be sold to raise cash within one day’s
  notice.  Overall, the average maturity of the portfolio, with the previous exceptions, shall not exceed three years.
  As of September 30, 2023  , the Authority was in compliance with all of these guidelines to manage interest rate
  risk.

  Credit Risk and Concentration of Credit Risk:  Credit risk is the risk that an issuer or other counterparty to an
  investment will not fulfill its obligations.  Concentration of credit risk is the risk of loss attributed to the
  magnitude of an investment in a single issuer.  The County mitigates these risks by emphasizing the importance
  of a diversified portfolio.  All funds must be sufficiently diversified to minimize  the risk of loss resulting from
  over-concentration of assets in a specific maturity, a specific issuer, or a specific class of securities.  In particular,
  no more than 25% of the overall portfolio may be invested in time deposits, including certificates of deposit, of
  a single issuer.  Concentration by issuer for other investment instruments is not specifically addressed in the
  investment policy.  However, the policy does specify that acceptable investment instruments must have high
  quality credit ratings and, consequently, risk is minimal.

  The County’s investment policy establishes minimum acceptable credit ratings for certain investment
  instruments.  Securities of states, agencies, counties, cities and other political subdivisions must be rated as to
  investment quality by a nationally recognized investment rating firm as A or its equivalent.  Money market
  mutual funds and public funds investment pools must be rated AAA or its equivalent by at least one nationally
  recognized rating firm.
  27

=== PDF PAGE 35 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023


  Custodial Credit Risk:Investments are exposed to custodial credit risk if the investments are uninsured, are not
  registered in the County’s name and are held by the counterparty.  In the event of the failure of the counterparty,
  the County may not be able to recover the value of its investments that are held by the counterparty.  As of
  September 30, 2023, all of the Authority’s investments are held in the County’s name.

  Foreign Currency Risk:  Foreign currency risk is the risk that fluctuations in the exchange rate will adversely
  affect the value of investments denominated in a currency other than the US dollar.  The County Investment
  Policy does not list securities denominated in a foreign currency among the authorized investment instruments.
  Consequently, the Authority is not exposed to foreign currency risk.

  FUND INVESTMENT CONSIDERATIONS

  The Investment Policy outlines specific investment strategies for each fund or group of funds identified on the
  Harris County and Authority’s financial statements.  The three investment strategies employed by Harris County
  are the Matching Approach, the Barbell Approach and the Laddered Approach.  The Matching Approach is an
  investment method that matches maturing investments with disbursements.  Matching requires an accurate
  forecast of disbursement requirements.  The Barbell Approach is an investment method where maturities are
  concentrated at two points, one at the short end of the investment horizon and the other at the long end.  The
  Laddered Approach is an investment method that positions maturities that occur in regular intervals, providing
  a known stream of cash.  The investment strategies and maturity criteria are outlined in the following table.

  Maximum  Average
  Investment  Maturity Per Policy  Maturity  Remaining Years
  Fund Type  Strategy  (Years)  Amount  To Maturity
  Toll Road Project Funds  Matching/Barbell/Laddered  5  429,375,000$  0.97
  Toll Road Renewal/Replacement  Matching/Barbell/Laddered  5  182,950,000  1.42
  Toll Road Bond Reserve  Matching  Final maturity of the bonds  39,576,250  0.63
  Money Market Mutual Funds  N/A  N/A  588,361,450  N/A
  $  1,240,262,700

  Note:  Money Market Mutual Funds are excluded from the various fund types, which may affect the average
  remaining days to maturity.

3.  OTHER RECEIVABLES AND UNEARNED REVENUE

  Other receivables as of September 30, 202  3  are comprised of credit card receivables and toll violations for
  EZ tag collections.  The other receivables amount of $117,211,061  (which includes the lease amount noted
  below) is  reported net of allowance for doubtful accounts of $616,945,666.

  The Authority leases a portion of its property to various third parties, the terms of which expire 2024.  The
  leases with payments that increase annually are  based upon the Consumer Price Index (Index)  and  were
  measured based upon the Index at lease commencement.  Leases are recorded at the present value to be
  received under all leases other than short term leases.  Short term leases are those with a maximum period
  of 12 months and are recognized as collected.  The total lease receivable as of September 30, 2023  was
  $4,296.

  Proprietary funds report unearned revenue in connection with resources that have been received, but not yet
  earned.  At the end of the fiscal year  ending, September 30, 2023, the Authority reported  $95,275,870  in
  unearned EZ tag revenues.


  28

=== PDF PAGE 36 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

4.  NOTES RECEIVABLE

  Notes receivable as of  September 30, 20  23  are comprised of the following:

  Outstanding  Outstanding
  October 1, 2022  Issued  Receipts  September 30, 2023
  Sam Houston Race Park  32,789$  985$  26,193$  7,581$
  Notes receivable  32,789$  985$  26,193$  7,581$



5.  PREPAIDS AND OTHER ASSETS

  Prepaids and other assets as of September 30  , 2023are comprised of the following:

  P  repaid surety expense  18, 562$
  P  repaid office expenses  2, 766, 606
  T  otal  2, 785, 168$


































  29

=== PDF PAGE 37 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

6.  CAPITAL ASSETS

  Capital asset activity for the  fiscal year ended September  30, 2023,was as follows:

  B  alanc e  B  alanc e
  Octobe r 1, 2022  A dditio ns  De  le  tio ns  T rans  fe  rs  Se pte mbe r 30, 2023

  Capital assets not being depreciated:
  La nd  383,609,851$  1,215,152$  -$  -$  384,825,003$
  Easement  1,989,062  -  -  -  1,989,062
  Cons truc tion in progre s s  1,055,326,095  183,456,375  ( 3,127,874)  ( 228,132,865)  1,007,521,731
  Total capital assets not depreciated  1,440,925,008  184,671,527  ( 3,127,874)  ( 228,132,865)  1,394,335,796

  Depreciable Capital assets:
  License agreement  237,500,000  -  -  -  237,500,000
  Intangible Assets - software  42,470,466  1,067,500  -  -  43,537,966
  La nd improve me nts  18,865,805  -  -  -  18,865,805
  Infrastructure  3,370,887,637  -  -  228,132,865  3,599,020,502
  Other tangible assets  7,489,687  -  ( 590,746)  -  6,898,941
  B uildings  20,728,052  -  -  -  20,728,052
  Equipme nt  60,309,328  3,841,162  ( 5,769,256)  -  58,381,234
  Total Depreciable capital assets:  3,758,250,975  4,908,662  ( 6,360,002)  228,132,865  3,984,932,500

  Less accumulated depreciation/amortization for:
  License agreement/Intangible Asset  ( 121,415,466)  ( 7,315,000)  -  -  ( 128,730,466)
  La nd improve me nts  ( 10,046,812)  ( 939,517)  -  -  ( 10,986,329)
  Infrastructure  ( 1,797,925,249)  ( 93,839,592)  -  -  ( 1,891,764,841)
  Other tangible assets  ( 7,182,737)  ( 14,227)  301,965  -  ( 6,894,999)
  B uildings  ( 5,749,109)  ( 454,644)  -  -  ( 6,203,753)
  Equipme nt  ( 46,407,253)  ( 4,716,136)  5,150,342  -  ( 45,973,047)
  ( 107,279,116)( 1,988,726,626)  5,452,307  -  ( 2,090,553,435)
  Total capital assets being
  depreciated, net  1,769,524,349  ( 102,370,454)  ( 907,695)  228,132,865  1,894,379,065
  Lease right-to-use assets:
  B uildings  3,949,223  24,655,494  -  -  28,604,717
  Equipme nt  121,530  -  -  -  121,530
  Total lease right-to-use assets  4,070,753  24,655,494  -  -  28,726,247
  Less accumulated amortization for:
  B uildings  ( 542,008)  ( 2,614,100)  -  -  ( 3,156,108)
  Equipme nt  ( 29,831)  ( 42,800)  -  -  ( 72,631)
  Total accumulated amortization  ( 571,839)  ( 2,656,900)  -  -  ( 3,228,739)
  Lease right-to-use assets, net  3,498,914  21,998,594  -  -  25,497,508

  Subs c ription right-to-us e  a s s e ts *:  11,555,814  470,424  -  -  12,026,238
  Less accumulated amortization for:
  Subs c ription right-to-us e  a s s e ts  -  ( 3,829,466)  -  -  ( 3,829,466)
  Subs c ription right-to-us e  a s s e ts , ne t  11,555,814  ( 3,359,042)  -  -  8,196,772

  Total capital assets, net  3,225,504,085$  100,940,625$  ( 4,035,569)$  -$  3,322,409,141$

  *The Authority increased the beginning balance as of October 1, 2022 to conform to provisions of GASB 96, Subscriptions, as identified in Note 1

7.  LONG-TERM LIABILITIES

  The Authority has financed the Toll Road Projects with a combination of unlimited tax and subordinate lien
  revenue bonds, senior and first lien revenue bonds, and commercial paper.  The proceeds from such bonds,
  including the interest earned thereon, are being used to finance the construction costs, the related debt
  service, and a portion of the maintenance and operating expenses.

  30

=== PDF PAGE 38 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023



  Changes in the Authority’s Long-  Term Liabilities  for  fiscal year 2022-2023were as follows:
  Outstanding
  Outstanding  Issued/  Paid/  September 30,  Due Within One
  October 1, 2022  Increased  Decreased  2023  Year
  Senior Lien Revenue Bonds  1,354,480,000$  -$  (203,065,000)$  1,151,415,000$  60,635,000$
  First Lien Revenue Bonds  607,170,000  119,495,000  (9,325,000)  717,340,000  11,640,000
  Tax Bonds  151,335,000  -  (20,700,000)  130,635,000  21,165,000
  Total Bond Principal  2,112,985,000  119,495,000  (233,090,000)  1,999,390,000  93,440,000
  Unamortized Premium, Senior Revenue Bonds  131,116,256  -  (14,663,865)  116,452,391  -
  Unamortized Premium, First Revenue Bonds  110,389,978  15,598,203  (11,560,339)  114,427,842  -
  Unamortized Premium, Tax Bonds  4,262,987  -  (689,463)  3,573,524  -
  Accrued Interest Payable  11,489,378  96,622,432  (96,427,704)  11,684,106  11,684,106
  Total Bonds Payable  2,370,243,599  231,715,635  (356,431,371)  2,245,527,863  105,124,106
  Commercial Paper Payable  36,600,000  75,330,000  -  111,930,000  -
  Compensatory Time Payable  1,501,867  1,262,279  (1,241,273)  1,522,873  763,325
  Lease Payable  3,541,930  24,655,494  (2,387,927)  25,809,497  3,880,741
  Subscription Payable*  11,555,814  470,424  (3,700,080)  8,326,158  4,001,346
  Total OPEB Liability  117,667,442  2,608,749  -  120,276,191  2,106,000
  Net Pension Liability  -  24,261,768  -  24,261,768  -
  Hedging derivative instruments  16,344,226  -  (16,344,226)  -  -
  Pollution Remediation Obligation  -  1,224,000  -  1,224,000  -
  Totals - Toll Road Fund Liabilities  2,557,454,878$  361,528,349$  (380,104,877)$  2,538,878,350$  115,875,518$
  *The Authority increased the beginning balance as of October 1, 2022 to conform to provisions of GASB 96, Subscriptions, as identified in Note 1


A.  Outstanding Bonded Debt –September 30  ,2023  –  Pertinent Information by Issue
  Interest  Outstanding
  Original  Rate  Year  Maturity  Balance
  Issue  Issue Amount  Range %  Issued  Range  September 30, 2023

  Senior Lien Revenue Bonds
  Refunding Series 2015B  161,575,000$  5.00  2015  2020-2036  133,450,000$
  Refunding Series 2016A  530,105,000  2.75-5.00  2016  2019-2047  459,365,000
  Refunding Series 2018A  559,900,000  4.00-5.00  2018  2019-2048  478,850,000
  Refunding Series 2019A  90,255,000  3.00-5.00  2019  2020-2049  79,750,000
  Total Principal Senior Lien Revenue Bonds  1,151,415,000
  Unamortized Premiums and Discounts  116,452,391
  Total Senior Lien Revenue Bonds  1,267,867,391$

  First Lien Revenue Bonds
  Refunding Series 2021  424,925,000$  3.00-5.00  2021  2021-2050  405,830,000$
  Refunding Series 2022A  194,030,000  5.00  2022  2022-2033  192,015,000
  Refunding Series 2023A  119,495,000  5.00  2023  2024-2035  119,495,000
  Total Principal First Lien Revenue Bonds  717,340,000
  Unamortized Premiums and Discounts  114,427,842
  Total First Lien Revenue Bonds  831,767,842$

  Unlimited Tax and Subordinate
  Lien Bonds (Tax Bonds)
  Refunding Series 1997  150,395,000$  5.125  1997  2014-2024  9,115,000$
  Refunding Series 2007C  321,745,000  5.25  2007  2014-2033  121,520,000
  Total Principal Tax Bonds  130,635,000
  Unamortized Premiums and Discounts  3,573,524
  Total Tax Bonds  134,208,524$


  31

=== PDF PAGE 39 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023


  B.  Covenants and Conditions
  The Senior Lien Revenue Bonds and First Lien Revenue Bonds  are payable from operating revenues
  generated from the Toll Roads.  The Tax Bonds are secured by and payable from a pledge of the County’s
  unlimited ad valorem taxing power and are also secured by a pledge of and lien on the revenues of the Toll
  Roads, subordinate to the lien of the  Senior Lien Revenue Bonds  and First Lien Revenue Bonds.The
  Authority has covenanted to assess a maintenance tax to pay project expenses if revenues, after paying
  debt service, are insufficient.  The Authority also has covenanted to collect tolls to produce revenues at the
  beginning of the third fiscal year following completion of the Toll Roads equal to at least 1.25 times the
  aggregate debt service on all Senior Lien Revenue Bonds and First Lien Revenue Bonds  accruing in such
  fiscal year.  The 1.25 revenue coverage covenant went into effect during fiscal year 1994.  The revenue
  coverage ratio was 5.98 as  of September 30  , 20  23.

  C.  Debt Service Requirements
  Total interest expense was $73,091,762  for the fiscal year ended September 30, 2023.  The  following are
  the debt service requirements for bonds payable:

  Year  Principal  Interest  Total
  2024  93,440,000$  93,472,844$  186,912,844$
  2025  89,475,000  88,759,325  178,234,325
  2026  94,370,000  84,255,400  178,625,400
  2027  98,455,000  79,556,675  178,011,675
  2028  102,770,000  74,603,638  177,373,638
  2029-2033  587,160,000  290,735,112  877,895,112
  2034-2038  318,045,000  170,635,350  488,680,350
  2039-2043  264,870,000  107,459,000  372,329,000
  2044-2048  302,045,000  45,475,800  347,520,800
  2049-2050  48,760,000  2,700,050  51,460,050
  $  1,037,653,1941,999,390,000$  3,037,043,194$

  D.  Unissued Authorized Bonds
  In an election held on September 13, 1983, the voters of the County endorsed using toll roads to alleviate
  the County’s traffic problems by authorizing the County to issue up to $900,000,000 of bonds secured by
  a pledged of its unlimited ad valorem taxing power. As of September 30,  2023, the unis  sued  authorized
  bonds for the toll road project are  $15,148  ,000.

  E.  Defeasance of Debt
  In prior years, the Authority has defeased certain bonds by placing the proceeds of the refunding bonds in
  an irrevocable trust to provide for all future debt service on the refunded bonds.  Accordingly, the trust
  account assets and the liability for the defeased bonds are not included in the financial statements.  As of
  September 30, 2023  there was no outstanding principal balance of these defeased bonds  in trust.

  F.  Debt Issuances

  On June 14, 2023, the County released $2,700,000 in US Treasury note pledged to JP Morgan Chase Bank
  as collateral on the $72,785,000 interest rate swap for the Series 2007B bonds.

  On June 14, 2023, the County released $2,500,000 in US Treasury bill pledged to Citibank as collateral
  on the $72,785,000 interest rate swap for the Series 2007B bonds.



  32

=== PDF PAGE 40 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  On June 28, 2023, the County issued $119,495,000 in Toll Road First Lien Revenue Refunding Bonds,
  Series 2023A, to refund the County’s outstanding Toll Road Senior Lien Revenue Bonds, Series 2007B,
  terminate Senior Lien Swap Agre ements, and to pay cost of such issuance. The annual interest rate is
  5.00%. The issuance had a premium of $15,598,203. The interest accrues semiannually, and the bonds
  mature in 2035. The refunding resulted in savings of $30,121,883 due to a decrease in cash flow
  requirements and had an economic gain of $912,897.

  G.  Commercial Paper
  In addition to the outstanding long-  term debt of the Toll Road, the Commissioners Court has established
  a commercial paper program secured by and payable from Toll Road revenues. In 2017, Commissioners
  Court authorized two additional commercial paper programs, for $200 million each, designated as Harris
  County Toll Road Senior Lien Revenue Commercial Paper Notes, Series E -1 and Series E-2 respectively
  (“Series E  -1 and E-2 Notes”) to finance capital projects of the Toll Road.  On May 31, 2021 Series E  -2
  was subsequently terminated.  On May 2, 2022, Series E-1 was also terminated. On March 22, 2022,
  Commissioners Court authorized a new commercial paper program, for $200 million, designated as the
  Harris County Toll Road System First Lien Revenue Commercial Paper Notes, Series K, to finance capital
  projects of Toll Road.  On May 16, 2023, Commissioners Court authorized a second commercial paper
  program, for $150 million, designated as the Harris County Toll Road System First Lien Revenue
  Commercial Paper Notes, Series K-2.  As of September 30, 2023, Toll Road had outstanding $111,930,000
  of commercial paper combinedin Series K and Series K  -2 Notes.

  For Commercial Paper Series K, Toll Road entered into a Letter of Credit Reimbursement Agreement (the
  “Series K Letter of Credit”) with PNC Bank, National Association, whereby the Bank supports the Series
  K Notes by issuing a letter of credit in the original stated amount of $214,794,521 (representing an amount
  supporting the total aggregate principal amount of $200,000,000 plus $14,794,521 which is 270 days’
  accrued interest on such principal amount at the rate of ten percent (10%)  per annum computed on a 365
  day basis) for the timely payment of the principal of and interest on the Series K Notes at maturity. The
  Series K Letter of Credit expires April 22, 2025. For this reimbursement agreement the Authority will be
  assessed a fee of 0.25% per annum on the stated amount of the letter of c redit. The Authority also agrees
  to pay the Bank a non-  refundable drawing fee of $350 for each drawing under the letter of credit. If
  converted to a term loan, the principal amount of each term loan will be paid in twelve (12) substantially
  equal quarterly  installments on each Amortization Payment Date, commencing with the first such
  installment on the Term Loan Commencement Date.

  For Commercial Paper Series K-2, Toll Road entered into a Letter of Credit Reimbursement Agreement
  (the “Series K  -2 Letter of Credit”) with Barclays Bank PLC, whereby the Bank supports the Series K  -2
  Notes by issuing a letter of credit in the original stat ed amount of $161,095,891 (representing an amount
  supporting the total aggregate principal amount of $150,000,000 plus $11,095,891 which is 270 days’
  accrued interest on such principal amount at the rate of ten percent (10%)  per annum calculated on the
  basis of a 365 day year) for the timely payment of the principal of and interest on the Series K-2 Notes at
  maturity. The Series K -2 Letter of Credit expires June 19, 2026.  For this reimbursement agreement the
  Authority will be assessed a fee of 0.29% per annum on the stated amount of the letter of credit. The
  Authority also agrees to pay the Bank a non-  refundable drawing fee of $250 for each drawing under the
  letter of credit. If converted to a term loan, the principal amount of each term loan will be paid  in equal
  semi-annual installments.






  33

=== PDF PAGE 41 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023



  DEBT SERVICE TO MATURITY-COMMERCIAL PAPER
  As of September 30, 2023  , the Authority had $  111,930,000  outstanding principal balance on the commercial
  paper lines of credit.

  Fiscal year  Principal  Interest  Total
  2024  -$  -$  -$
  2025  -  2,824,441  2,824,441
  2026  37,143,333  13,886,835  51,030,168
  2027  37,268,333  8,290,231  45,558,564
  2028  37,310,000  2,636,597  39,946,597
  2029  166,667  22,179  188,846
  2030  41,667  1,584  43,251
  $  27,661,867111,930,000$  139,591,867$

  H.  Arbitrage Rebate Liability
  The Tax Reform Act of 1986 established regulations for the rebate to the federal government of arbitrage
  earnings on certain local government bonds issued after December 31, 1985, and all local governmental bonds
  issued after August 31, 1986. Issuing governments must calculate any rebate due and remit the amount due at
  least every five years.  There were no arbitrage reb ate payments made during fiscal year 2023.  As of
  September 30, 2023, there were no liabilities for arbitrage rebate on governmental debt and  no liabilities for
  arbitrage rebate on enterprise debt.  The Debt Service Funds have typically been used to liquidate arbitrage
  liabilities in previous years.

I.  Interest Rate Swap
  The Authority  entered interest rate swaps with Citibank, N.A., New York, and JP Morgan Chase Bank, National
  Association, relating to the Toll Road Senior Lien Revenue Refunding Bonds, Series 2007B. The purpose of
  the swaps was to create a fixed cost of funds on certain  maturities of the related bonds that is lower than the
  fixed cost achievable in the cash bond market. These Senior Lien Swap Agreements were terminated on June
  28, 2023.

  J.  Subsequent Debt Related Activity
  No subsequent events noted.

  K.  Lease Liability
  The  Authority  leases buildings and equipment, the terms of which expire in various years through 2033.
  Variable payments of certain leases are based upon the Consumer Price Index (Index).  The leases were
  measured based upon the Index at lease commencement. Variable payments based upon the use of the
  underlying asset are not included in the lease liability because they are not fixed in substance.












  34

=== PDF PAGE 42 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  The following is a schedule by year of payments under the leases as of September 30, 2023  :
  Fis  c al Ye  ar Ending  To tal to  B  e
  Se  pte  mbe  r 3  0  ,  Paid  Princ ipal  Interest
  2024  $  3,880,7414,456,052$  575,311$
  2025  3,808,0924,326,357  518,265
  2026  3,511,1383,942,329  431,191
  2027  3,362,3223,709,275  346,953
  2028  2,200,1572,474,466  274,309
  2029- 2033  9,047,0479,664,805  617,758
  $  25,809,49728,573,284$  2,763,787$
  L .  SubscriptionLiability

  The Authority has multi-year information technology subscriptions, the terms of which expire in various years
  through 2026.  Variable payments of certain subscriptions  are based upon the Consumer Price Index (Index).
  The  subscriptions  were measured based upon the Index at lease commencement. Variable payments based
  upon the use of the underlying asset are not included in the subscription  liability because they are not fixed in
  substance.

  The following is a schedule by year of payments under the leases as of September 30, 2023  :
  Fis  c al Ye  ar Ending  To tal to  B  e
  Se  pte  mbe  r 3  0  ,  Paid  Princ ipal  Interest
  2024  $  4,001,3464,190,725$  189,379$
  2025  2,942,1583,018,434  76,276
  2026  1,382,6541,401,667  19,013
  $  8,326,1588,610,826$  284,668$


8.  RETIREMENT PLAN

  Plan Description.  Harris County provides retirement, disability, and survivor benefits for all of its employees
  (excluding temporary) through a non-traditional defined benefit pension plan in the statewide Texas County
  and District Retirement System (“TCDRS”). This is accou  nted for as an agent multiple employer  defined
  benefit pension plan.  The Board of Trustees of TCDRS is responsible for the administration of the statewide
  agent multiple-employer public employee retirement system. TCDRS in the aggregate issues an annual
  comprehensive financial report on a calendar year basis.  The annual report is available upon written request
  from the TCDRS, Finance Division, Barton Oaks Plaza IV, Ste. 500, 901 S. MoPac Expy., Austin, TX
  78746  or the website at www.TCDRS.org.

  Harris County’s pension plan includes Toll Road and three other participating employers.  Toll Road Authority
  has reported its participation in the Harris County plan as a cost sharing employer.  The Harris County plan  is
  allocated to participating employers based upon contributions.  The Authority’s allocated share was 3.40%.

  Benefits Provided.  The plan provisions are adopted by Commissioners Court of the County, within the options
  available in the state statutes governing TCDRS (“TCDRS Act”).  Members can retire at ages 60 and above
  with eight or more years of service, with 30 years of service regardless of age, when the sum of their age and
  years of service equals 75 or more, or if they become disabled.  Members are vested after eight years of service
  but must leave their accumulated contributions in the plan to receive any employer-financed benefit.  Members
  who withdraw their personal contributions in a lump sum are not entitled to any amounts contributed by the
  County.

  35

=== PDF PAGE 43 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Benefit amounts are determined by the sum of the employee’s contributions to the plan, with interest and
  employer-financed monetary credits. The level of these monetary credits is adopted by Commissioners Court,
  within the actuarial constraints imposed by the TCDRS Act so that the resulting benefits can be expected to be
  adequately financed by the employer’s commitment to contribute.  By law, employee accounts earn 7% interest.
  At retirement, death, or disability, the benefit is calculated by converting the sum of the employee’s accumulated
  contributions and the employer-financed monetary credits to a monthly annuity using annuity purchase rates
  prescribed by the TCDRS Act.  The County’s current match is 225%.

  Employees Covered by Benefit Terms.  At the measurement date, the following employees were covered by
  the benefit terms of the Harris County plan:

  12/31/21  12/31/22
  Inactive employees or beneficiaries currently receiving benefits  10,196  10,705
  Inactive employees entitled but not yet receiving benefits  9,800  11,802
  Active employees  19,921  19,088
  To  t  a l  39,917  41,595


  Contributions.The County has elected the annually determined contribution rate (“ADCR”) plan provisions
  of the TCDRS Act.  The plan is funded by monthly contributions from both employee members and the
  County based on the covered payroll of employee members.  Under the TCDRS Act, the contribution rate
  of the County is actuarially determined annually as of December 31, two years prior to the end of the fiscal
  year in which contributions are reported.  The County contributed using an actuarially determined rate of
  15.1% of covered payroll for the months of the calendar year 2021,  15.7% for the calendar  year 202  2  and
  the first 9months of 2023.

  The contribution rate payable by the employee members for 2022 and 2023 is 7% as adopted by Commissioners
  Court.  The employee contribution rate and the employer contribution rate may be changed by Commissioners
  Court, within the options available in the TCDRS Act.

  Actuarial Assumptions.  For the County’s fiscal year ended  September 30, 2023  , the net pension (asset)/  liability
  was measured as of December 31, 2022, and the total pension  liability used to calculate the net pension
  (asset)/liability was determined by an actuarial valuation as of that date.

  The total pension liability in the December 31, 2022  actuarial valuation was determined using the following
  actuarial assumptions, applied to all periods included in the measurement:

  Inflation  2. 5%
  Salary Increases  4. 7%
  Investment rate of return  7. 6%
  (Investment rate of return is gross of
  administrative expenses)

  The County has no automatic cost-of-living adjustments (“COLA”) and one is not considered to be
  substantively automatic under GASB No. 68, Accounting and Financial Reporting for Pensions  ( “GASB 68”)  .
  Therefore, no assumption for future cost-of-living adjustments is included in the GASB calculation or in the
  funding valuation.  Each year, the County may elect an ad-  hoc COLA for its retirees.

  The annual salary increases  rates assumed for individual members vary by length of service and by entry-
  age group.  The annual rates consist of a general wage inflation component of 3.00% (made up of 2.50%


  36

=== PDF PAGE 44 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  inflation and 0.5% productivity increase assumptions) and a merit, promotion, and longevity component that
  on average approximates 1.7% per year for a career employee  .

  Mortality rates for depositing members were 135% of Pub-  2010 General Employees Amount-Weighted
  Mortality Table for males and 120% Pub-  2010 General Employees Amount-Weighted Mortality Table for
  females, both projected with 100% of the MP-2021 Ultimate scale after 2010. Service retirees, beneficiaries,
  and non-  depositing members were 135% of Pub-  2010 General Retirees Amount-Weighted Mortality Table
  for males and 120% Pub-  2010 General Retirees Amount-Weighted Mortality Table for females, both
  projected with  100% of the MP-2021 Ultimate scale after 2010. General  Disabled retirees were 160% of
  Pub-2010 General Disabled Retirees Amount-Weighted Mortality Table for males and 125% Pub -2010
  General Disabled Retirees Amount-Weighted Mortality Table for females, both projected with 100% of the
  MP-2021 Ultimate scale after 2010.

  The actuarial cost method was Entry Age Normal, as required by GASB No. 68. The actuarial assumptions
  used in the December 31, 2022  valuation for the County were developed from an actuarial experience
  investigation of TCDRS over the years 2017-  2020, except where required to be different by GASB No. 68.
  The long-  term expected rate of return on TCDRS assets is determined by adding expected inflation to
  expected long-  term real returns and  reflecting expected volatility and correlation.  The numbers shown are
  based on January 2023  information for a 10-  year time horizon and are re-assessed at a minimum of every
  four years, and is set based on a long -term time horizon. The TCDRS Board of Trustees adopted the current
  assumption at their March 2021 meeting. The assumption  is  reviewed annually for continued compliance
  with relevant standards of practice.

  The following target asset allocation was adopted by the TCDRS board in March 2023.  The geometric real
  rate of return is net of inflation, assumed at 2.3%.

  T  arget  Geometric Real
  Asset Class  Allo  c  a  t  io  n  Rate of Return
  U. S.  Equities  11. 50%  4. 95%
  Global Equities  2. 50%  4. 95%
  International Equities - Developed Markets  5. 00%  4. 95%
  International Equities - Emerging Markets  6. 00%  4. 95%
  Investment-Grade Bonds  3. 00%  2. 40%
  Strategic Credit  9. 00%  3. 39%
  Direct Lending  16. 00%  6. 95%
  Distressed Debt  4. 00%  7. 60%
  REIT  Equities  2. 00%  4. 15%
  Master Limited P  artnerships  2. 00%  5. 30%
  P  rivate Real Estate P  artnerships  6. 00%  5. 70%
  P  rivate Equity  25. 00%  7. 95%
  Hedge Funds  6. 00%  2. 90%
  Cash Equivalents  2. 00%  0. 20%
  100. 00%

  Discount Rate.  The discount rate used to measure the total pension  liability was 7.6%.Using the alternative
  method, the projected fiduciary net position is determined to be sufficient compared to projected benefit
  payments based on the funding requirements under the County’s funding policy and the legal requirements
  under the TCDRS Act.

  1.  TCDRS has a funding policy where the unfunded actuarial accrued liability (“UAAL”) shall be
  amortized as a level percent of pay over 20 -year closed  layered periods.

  37

=== PDF PAGE 45 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  2.  Under the TCDRS Act, the County is legally required to make the contribution specified in the
  funding policy.
  3.  The County’s assets are projected to exceed its  accrued liabilities in 20 years or less.  When this
  point is reached, the employer is still required to contribute at least the normal cost.
  4.  Any increased cost due to the adoption of a COLA is required to be funded over a period of 15 years,
  if applicable.

  Since the projected fiduciary net position is projected to be sufficient to pay projected benefit payments in
  all future years, the discount rate for purposes of calculating the total pension  liability and net pension
  (asset)/liability of the employer is equal to the long-  term assumed rate of return on investments.

  Changes in Net Pension Liability/(Asset) (amounts in thousands):

  Harris Co  unty
  T  otal P  ension  Fiduciary  Net P  ension
  L  ia  b  ilit  y  Net P  osition  Liability/(Asset)
  (a)  (b)  (a) - (b)
  Balances as of December 31,  2021  8, 066, 367$  8, 325, 113$  (258, 746)$
  Changes for the year:
  Service cost  202, 068  -  202, 068
  Interest on total pension liability  612, 984  -  612, 984
  Effect of economic/demographic gains or losses  (48, 873)  -  (48, 873)
  Refund of contributions  (16, 227)  (16, 227)  -
  Benefit payments  (397, 052)  (397, 052)  -
  Administrative expenses  -  (4, 516)  4, 516
  Member contributions  -  88, 572  (88, 572)
  Net investment loss  -  (477, 235)  477, 235
  Employer contributions  -  198, 225  (198, 225)
  Other  -  (10, 981)  10, 981
  Balances as of December 31,  2022  8, 419, 267$  7, 705, 899$  713, 368$
  The net pension liability  allocated to the Authority  at September 30, 2023  was $24,261,768 and the County

  contributions for the same period was $6,741,683.

  Sensitivity Analysis.  The following presents the net pension (asset)/liability of the County, calculated using
  the discount rate of 7.6%, as well as what the County’s net pension  (asset)/liability would be if it were
  calculated using a discount rate that is 1 -percentage-  point lower (6.6%) or 1-  percentage-  point higher (8.6%)
  than the current rate (amounts in thousands):

  Harris County:
  Current
  1% Decrease  Discount Rate  1% Increase
  6. 60%  7. 60%  8. 60%
  T  otal pension liability  9, 534, 731$  8, 419, 267$  7, 485, 239$
  Fiduciary net position  7, 705, 899  7, 705, 899  7, 705, 899
  Net pension (asset)/liability  1, 828, 832$  713, 368$  (220, 660)$

  Pension Plan Fiduciary Net Position.Detailed information about the pension plan’s fiduciary net position
  is available in the separately issued TCDRS financial report.

  38

=== PDF PAGE 46 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Pension Expense and Deferred Inflows/Outflows of Resources Related to Pensions.  For the fiscal  year
  ending September 30, 2023, the County recognized pension expense  of $196,767,619, the Authority’s share
  was $6,415,031.  T  he County reported deferred outflows of resources and deferred inflows of resources
  related to pension from the following sources (amounts in thousands):

  Har  r  i s  Co  unt y:  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  45, 702$  13, 181$
  Changes of assumptions  -  222, 906
  Net difference between projected and actual earnings  -  140, 738
  Contributions made subsequent to the measurement date  -  151, 039
  To  t  a l  45, 702$  527, 864$

  T  oll Road Authority' s Allocation:  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  1, 554$  448$
  Changes of assumptions  -  7, 581
  Net difference between projected and actual earnings  -  4, 787
  Contributions made subsequent to the measurement date  -  5, 645
  T  otal  1, 554$  18, 461$

  Amounts  currently  reported as deferred outflows of resources and deferred inflows of resources related to
  pensions  , excluding  contributions made subsequent to the measurement date, will be recognized in pension
  expense for the Harris County plan as follows (amounts in thousands):

  County  T  oll Road
  Fiscal Year Ending September 30:  Fiscal Year Ending September 30:
  2024  (31, 790)$  2024  (1, 081)$
  2025  62, 288  2025  2, 118
  2026  89, 471  2026  3, 043
  2027  211, 154  2027  7, 182
  2028  -  2028  -
  T  otal  331, 123$  T  otal  11, 262$
  Payable to the Pension Plan.  At  September 30, 2023, the County reported a payable of $33,  821,818  for the

  outstanding amount of contributions to the pension plan.

  The above information includes four participating employers to the agent multiple employer defined benefit
  pension plan.  One of the employers, Community Supervision (“CS”) is not considered a department or a
  component unit of the County  and thus is presented below for consideration as part of the total pension
  balances.  The net pension  liability for CS at September 30, 2023wa  s $16,170,323.







  39

=== PDF PAGE 47 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  The deferred inflows and outflows reported for CS at September 30, 2023were (amounts in thousands):

  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  1, 036$  298$
  Changes of assumptions  -  5, 053
  Net difference between projected and actual earnings  -  3, 190
  Contributions made subsequent to the measurement date  -  3, 610
  T  otal  1, 036$  12, 151$

  For the measurement period ended December 31, 2022, CS recognized pension expense  of $  3,543,853.

  The Required Supplementary Information (“RSI”) following the notes to the financial statements contains:
  the schedule of changes in the County’s net pension  (asset)/liability and related ratios, and the schedule of
  County contributions.

9.  OTHER POSTEMPLOYMENT BENEFITS

  THE PLAN:

  Plan Description
  Harris County administers an agent multiple-employer defined benefit postemployment healthcare plan that
  covers retired employees of participating governmental entities.  The employers in the plan are: Harris
  County, Flood Control District, Toll Road Authority, Juvenile Board, Community Supervision, and
  Emergency 911.  The plan provides medical, dental, vision, and basic life insurance benefits to plan
  members.  Local Government Code Section 157.101 assigns the authority to establish and amend benefit
  provisions to Commissioners Court.  Harris County’s defined OPEB plan is not considered a trust.

  Benefits Provided
  The County maintains the same healthcare plans for its retirees as for its active employees, except for the
  “Base Healthy Actions”, and “Plus Healthy Actions” plans. The County's contribution depends on age and
  years of service with the County at the time of retirement. Employees of Harris County are eligible to retire
  from the County either: (i) upon being vested with 8 years of creditable Texas County and District Retirement
  System (TCDRS) service and reaching age 60, or (ii) upon satisfying the "Rule of 75" (age plus vested
  service equals at least 75.)

  As a separate Harris County requirement for eligibility for retiree healthcare benefit contributions, after
  March 1, 2002 an employee's age plus Harris County service must equal 75 with a minimum of 10 years of
  County service in order to receive 100% of the County contribution for retiree and dependent coverage.

  Retirees whose age plus Harris County service equals 70 but less than 75 are required to pay 20% of the
  County contribution for retiree and dependent coverage. Employees who retire and whose age plus Harris
  County service is less than 70 are required to pay 50% of the County contribution for retiree and dependent
  coverage.

  In addition, there are other scenarios where employees may retire using other creditable service such as time
  from other retirement systems, reinstated service, or disability retirement and still qualify for partial County
  healthcare contributions. For retirements after March 1, 2002, retirees are required to have a minimum of 4
  consecutive years of County service while covered under the County's medical plan immediately prior to
  retirement to be eligible for County healthcare contributions.

  40

=== PDF PAGE 48 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  The level of the County's contribution varies by age at retirement and years of service completed according
  to the following schedule:

  Years of Service  0-3  4-7  89  10+
  Less then 70 Points  0%  50%  50%  50%  50%
  70-74 Points  0%  50%  80%  80%  80%
  75 Points or More  0%  50%  80%  80%  100%

  Harris County only pays 50% of the dependent premium if:  1) the dependent was insured at least one year
  before the employee retired; and 2) if the retiree qualifies for 100% contribution.  If an employee retires
  paying a portion of their own premium (i.e., 20%) then they would pay a proportionately higher premium
  for their dependents.

  Changes pursuant to Commissioners Court Order dated September 26, 2006:
  1.  Current retirees are grandfathered under the contribution rule under which they retired;
  2.  Employees who were eligible to retire by February 28, 2011 are grandfathered under the rule they would
  have been entitled to had they retired as of that date;
  3.  All other employees must have age plus service of at least 80 points or be at least age 65 and have at
  least 10 years of creditable County service to receive 100% of the County approved contribution for
  retiree and dependent coverage. They must also pay a contribution for retiree healthcare prior to
  Medicare eligibility as determined by the Commissioners Court each year. In 2016, Commissioners
  Court approved this amount to be $100; and
  4.  Employees hired after February 28, 2007 must pay a monthly contribution for retiree healthcare as
  determined by the Commissioners Court each year. The Court's policy also required this group of retirees
  to pay the full premiums (for both retiree and dependents) for all coverages.

  Retiree Healthcare Contribution Policy Update dated October 3, 2011:
  Beginning March 1, 2012, retiree-paid premiums for the medical/prescription plans are greater for non-
  Medicare retirees than for retirees with Medicare, and a new tier was added (retiree plus child and retiree
  plus spouse now have separate rates).

  Retiree Healthcare Contribution Policy Update dated February 14, 2017:
  Effective March 1, 2017, employees hired after February 28, 2007 are entitled to retiree healthcare
  contributions upon reaching eligibility. They must have age plus creditable County service of at least 80
  points or be at least age 65 and have at least 10 years of creditable County service to receive 100% of the
  County contribution for retiree and dependent coverage. They must also pay a monthly contribution of $100
  for retiree healthcare.

  Retiree Healthcare Contribution Policy Update dated October 23, 2018:
  The following contribution rules are effective March 1, 2019.

  Current retirees are “grandfathered” under the contribution rule they retired under.

  Employees hired prior to March 1, 2007 have to attain a combination of age plus a minimum of 10 years of
  non-  forfeited Harris County/TCDRS service equal to 80 or be at least age 65 or Medicare age, with a
  minimum of 10 years of non-forfeited Harris County/TCDRS service to receive the  approved County
  contribution for retiree and dependent healthcare coverage.

  Employees hired after March 1, 2007 have to attain a combination of age plus a minimum of 20 years of
  non-  forfeited Harris County/TCDRS service equal to 80 or be at least age 65 or Medicare age, with a
  minimum of 15 years of non-forfeited Harris County/TCDRS service to receive the approved County
  41

=== PDF PAGE 49 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  contribution for retiree and dependent healthcare coverage.

  All employees will be required to have had continuous employment as a Regular employee or to have been
  covered under the Harris County medical plan as an Active Employee for four consecutive years prior to
  retirement to be eligible for any County premium contribution. When calculating whether the retiree meets
  this requirement, the following absences are included: 1) Qualified leave of absence (LOA) only if the person
  elected COBRA coverage during the LOA; (2) Approved Military Leave; and (3) A break in service of no
  more than four months only if the person elected COBRA coverage.

  Effective March 1, 2019, employees who have fully repurchased previously forfeited Harris County/TCDRS
  service are allowed to have that service included towards eligibility for County retiree healthcare
  contributions. Repurchased amounts must be the minimum of what the employee had withdrew from their
  account at the time of separation. Partial repayments of previously forfeited service are eligible if made prior
  to October 23, 2018.

  Grandfathered employees are those who were retired or eligible t o retire under the existing rules as of
  February 28, 2011. It was assumed that an additional contribution for non-  grandfathered, under age 65
  retirees would be a minimum of the Federal Medicare Part B premium at the beginning of the plan year. In
  2016 Commissioners Court approved this amount to be $100.

  On February 22, 2022, Commissioners Court approved to provide Harris County retiree health benefits and
  contributions to Harris County Sheriff’s Office correctional healthcare employee  s  who become employed
  with Harris Health System or the University of Houston and who are within 10 years of their retiree health
  eligibility date and have at least 10 years of Harris County service. Changes in membership or the impact of
  extending retiree benefit will be reflected in the Total OPEB Liability when the change or impact can be
  determinable.

  The County has reserved the right to amend its benefits (including required contributions) at any time.

  Plan Membership
  At March 1, 2022, the most recent  valuation date, membership consisted of the following:

  Inactive plan members or beneficiaries
  currently receiving benefit payments  6, 127
  Active plan members  17, 329
  23, 456

  Contributions
  Local Government Code Section 157.102 assigns to Commissioners Court the authority to establish and
  amend contribution requirements of the plan members and the participating employers.

  Total OPEB Liability
  The County’s Total  OPEB Liability was measured  as of September 30, 2023  was determined by an actuarial
  valuation as of March 1, 2022. Standard actuarial update procedures were used to project/discount from
  valuation to measurement dates.

  Actuarial Assumptions
  The total OPEB liability was determined  using the following actuarial assumptions, applied to all periods
  included in the measurement, unless otherwise specified:

  42

=== PDF PAGE 50 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Actuarial cost method  Entry Age, Level P ercent of P ay

  Valuation of fiduciary net position  No assets held in an irrevocable trust as of the measurement date.
  Recognition of deferred inflows and outflows of  Closed period equal to the average of the expected remaining
  resources  service lives of all employees provided with OP EB
  Salary increases  3.00 percent
  Inflation rate  2.75 percent
  Healthcare cost trend rate  6.00 percent for 2023, 5.50 percent for 2024, 5.25 percent for
  2025-2029, 5.00 percent for 2030-2039, 4.75 percent for 2040-
  2049, 4.50 percent for 2050-2069, and 4.00 percent for 2070 and
  later years
  P reretirement Mortality
  Males  135% of P ub-2010 General Employees Headcount-Weighted.
  Females  120% of P ub-2010 General Employees Headcount-Weighted.
  P ostretirement Mortality
  Males  135% of P ub-2010 General Retirees Headcount-Weighted.
  Females  120% of P ub-2010 General Retirees Headcount-Weighted.
  Mortality Improvement:  100% of the MP -2021 Ultimate P rojection Scale.

  Actuarial assumptions used in the March 1, 2022  valuation were based on a review of plan experience during
  the period March 1, 2020 to February 28, 2022.

  Discount Rate
  For OPEB Plans That Are Not Administered through Trusts That Meet the Criteria in Paragraph 4, GASB
  75 requires a discount rate that is a yield or index rate for 20-  year, tax-exempt general obligation municipal
  bonds with an average rating of AA/Aa or higher. The discount rate used to measure the County’s Total
  OPEB liability is based on the following information:


  Fidelity GO AA
  20 Years
  Reporting Date  Measurement Date  Municipal Index  Discount Rate a
  September 30,  2022  September 30,  2022  4. 40%  4. 50%
  September 30,  2023  September 30,  2023  4. 63%  4. 75%
  a Municipal Index rounded to nearest 25 basis points

  Schedule of Changes in Total  OPEB Liability (  October 1, 2022  to September  30, 2023)
  Increase (Decrease)
  T otal OP EB
  L  ia  b  ilit  y
  (a)
  Balances as of October 1, 2022  2, 779, 840, 257$
  Changes for the year:
  Service cost  105, 267, 741
  Interest  128, 191, 762
  Changes of assumptions  (117, 204, 683)
  Benefit payments (1)  (73, 614, 398)
  Balances as of September 30, 2023  2, 822, 480, 679$
  (1)  Includes $73,614,398of pay-  as-you-go contributions.
  43

=== PDF PAGE 51 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  There was an increase in the  Total OPEB liability mainly due to the increase in interest cost during the fiscal
  year.

  Sensitivity of the Total OPEB liability to changes in the discount rate. The following presents the Total
  OPEB liability, as well as what the Total  OPEB liability would be if it were calculated using a discount rate
  that is 1-percentage point lower (3.75  percent) or 1-percentage-  point higher (5.75  percent) than the current
  discount rate:
  Harris County:  1% Decrease  Discount Rate  1% Increase
  3. 75%  4. 75%  5. 75%
  T otal OP EB liability  3, 334, 862, 182$  2, 882, 480, 679$  2, 414, 579, 462$


  T oll Road:  1% Decrease  Discount Rate  1% Increase
  3. 75%  4. 75%  5. 75%
  T otal OP EB liability  142, 003, 649$  120, 276, 191$  102, 909, 899$

  Sensitivity of the Total OPEB liability to changes in the healthcare cost trend rates. The following presents
  the  Total  OPEB liability, as well as what the Total  OPEB liability would be if it were calculated using
  healthcare cost trend rates that are 1-percentage-  point lower or 1-  percentage-point higher than the current
  healthcare cost trend rates:
  Harris County:
  1% Decrease(2)  T rend Rate  1% Increase(3)
  T otal OP EB liability  2,338,843,214$  2,822,480,679$  3,454,426,719$


  T oll Road:  1% Decrease(2)  T rend Rate  1% Increase(3)
  T otal OP EB liability  99,480,626$  120,276,191$  147,321,010$


  (2) T rend rate for each future year reduced by 1.00%.

  (3) T rend rate for each future year increased by 1.00%.


  OPEB Expense and Deferred Inflows/  Outflows of Resources Related to OPEB
  For the fiscal year ended September 30, 2023, the County recognized OPEB expense of $214,058,165, and
  the Authority’s share was $9,476,699. At  September 30, 2023, the County’s deferred outflows of resources
  and deferred  inflows of resources related to OPEB from the following sources are:

  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  183, 225, 779$
  Changes in assumptions or other inputs  1, 262, 746, 532  730, 737, 050
  T  otal  1, 262, 746, 532$  913, 962, 829$


  T  oll Road' s Allocation:  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  7, 831, 907$
  Changes in assumptions or other inputs  54, 069, 211  31, 235, 038
  T  otal  54, 069, 211$  39, 066, 945$

  Amounts reported as deferred inflows/outflows of resources will be recognized in OPEB expense as follows:


  44

=== PDF PAGE 52 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  Harris Co  unty  To  ll Ro  ad
  Fiscal Year Ending September 30:  Fiscal Year Ending September 30:
  2024  (19, 401, 338)$  2024  (834, 512)$
  2025  (19, 401, 338)  2025  (834, 512)
  2026  (19, 401, 338)  2026  (834, 512)
  2027  (26, 594, 108)  2027  (1, 143, 895)
  2028  (105, 714, 619)  2028  (4, 547, 113)
  T  hereafter  (158, 270, 962)  T  hereafter  (6, 807, 722)
  $  (15, 002, 266)(348, 783, 703)$

  The above information includes five participating employers to the agent multiple employer defined benefit
  postemployment healthcare plan.  Two of the employers, Community Supervision (“CS”) and Emergency
  911 (“911”) are not consi  dered departments or component units of the County.  The Total  OPEB liability for
  CS and 911 at September 30, 2023  is $16,763,930.

  The deferred inflows and outflows reported for CS and 911 at September 30, 2023  were:

  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  995, 289$
  Changes in assumptions or other inputs  5, 396, 544  3, 969, 392
  T  otal  5, 396, 544$  4, 964, 681$
  Additional Disclosures

  Texas Local Government Code, Chapter 175 allows counties to make available continued health benefits
  coverage under certain circumstances to retirees and their dependents beyond the end of an individual's
  employment with the County ("Continuation Coverage") by permitting covered employees to purchase
  continued health benefits coverage in retirement. Texas Law does not require counties to fund all or any
  portion of such coverage.

  Because the County is given the authority to pay OPEB for its retired employees, it may incur a debt
  obligation to pay for OPEB so long as the County follows the constitutional requirement that it have
  sufficient taxing authority available at the time such debt is incurred to provide for the payment of the debt
  and has in fact levied a tax for such purpose concurrently with the incurrence of the debt. Any debt incurred
  in contravention of this constitutional requirement is considered void and payment will not be due.  The
  County has not incurred a legal debt obligation for OPEB and has not levied a tax for the same and this is not
  a practice the County participates in. The County funds the costs associated with OPEB on a current “pay as
  you go” basis for a single fiscal year through an annual appropriation authorized by Commissioners Court
  during the County’s annual budget adoption process.

  GASB Statement No. 75 requires governmental organizations to recognize an actuarially calculated accrued
  liability for OPEB, even though it may not have a legally enforceable obligation to pay OPEB benefits.
  Accordingly, information and amounts presented in the County’s Annual Comprehensive Financial Report
  relative to OPEB expense/expenditures, related liabilities (assets), note disclosures, and supplementary
  information are only intended to achieve compliance with the requirements of generally accepted accounting
  principles and does not constitute or imply that the County has made a commitment or is legally obligated
  to provide the OPEB benefit.





  45

=== PDF PAGE 53 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

10.  COMMITMENTS AND CONTINGENCIES

  Construction Commitments
  The Authority is committed under various contracts in connection with the construction of Authority facilities,
  buildings, and roads of  $230,667,195.

  Litigation and Claims
  The Authority is involved in lawsuits and other claims in the ordinary course of operations.  Although the
  outcome of such pending lawsuits and other claims are not presently determinable, management of the Authority
  believes that the resolution of these matters is not expected to have a materially adverse effect on the financial
  condition of the Authority.  There are several civil cases that have resulted in settlements, consent decrees or are
  expected to have financial impact on the Authority in subsequent fiscal years.

  Pollution Remediation
  The Authority is subject to numerous Federal, State and Local environmental laws and regulations.  GAAP
  established standards for the accounting and reporting of obligations incurred to address current or potential
  detrimental effects of existing pollution.  The Authority recorded pollution remediation liabilit  y of $1,224,000
  in the financial statements.

  METRO Agreement
  An  amended  agreement between METRO  and the County related to the Westpark Corridor was  approved by
  Commissioners Court on May 7, 2013.  Per this agreement  the County  is obligated  to reimburse METRO  for
  certain increased project costs  if incurred. The County’s liability to METRO  under the agreement shall not
  exceed the  cap  of  $41 million and  the escalation thereof.  Ad valorem taxes are irrevocably pledged to the
  payment.

11.  TRANSFERS AND ADVANCES

  Transfers out in the amount of $369.3  million for the fiscal year  ended September 30, 2023  which consisted of
  transfers of surplus revenue of the HCTRA toll road system, including the annual mobility transfer, approved
  by Commissioners Court in accordance with the existing bond indenture and Section 284.0031, Transportation
  Code, to pay or finance costs of roads, streets, highways, or other related facilities that are not part of the
  Authority’s toll road system.

12.  RECENT ACCOUNTING PRONOUNCEMENTS

  GASB Statement No. 99, Omnibus 2022 –  (“GASB 99”), objectives of this Statement are to enhance
  comparability in accounting and financial reporting and to improve the consistency of authoritative literature by
  addressing (1) practice issues that have been identified during implementation and application of certain GASB
  Statements and (2) accounting and financial reporting for financial guarantees. Except what was implemented
  as of September 30, 2022, the requirements guarantees and reporting of derivative instruments will be
  implemented by the Authority  in the fiscal year ending September 30, 2024 and the impact has not yet been
  determined.

  GASB Statement No. 100, Accounting Changes and Error Corrections—  an amendment of GASB Statement No.
  62 –  (“GASB 100”), The primary objective of this Statemen  t is to enhance accounting and financial reporting
  requirements for accounting changes and error corrections to provide more understandable, reliable, relevant,
  consistent, and comparable information for making decisions or assessing accountability. GASB 100 will be


  46

=== PDF PAGE 54 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED SEPTEMBER  30, 2023

  implemented by the Authority  as of the year ended September 30, 2024 and the impact has not yet been
  determined.

  GASB Statement No. 101, Compensated Absences –  (“GASB 101”), The primary objective of this Statement is
  to better meet the information needs of financial statement users by updating the recognition and measurement
  guidance for compensated absences. That objective is achieved by aligning the recognition and measurement
  guidance under a unified model and by amending certain previously required disclosures. GASB 101 will be
  implemented by the Authority  as of the year ended September 30, 2025 and the impact has not yet been
  determined.

  GASB Statement No. 102  ,  Certain Risk Disclosures  –  (“GASB  102”),  The objective of this Statement is to
  provide  users of government financial statements with essential information about risks  related to a
  government’s vulnerabilities due to certain concentrations or constraints.  GASB  102 will be implemented by
  the Authority as of the year ended September 30, 2025  and the impact has not yet been determined.

13.  RESTATEMENT

  Subsequent to the issuance of the September 30, 2022  financial statements, the Authority identified two errors
  in construction in progress. Two construction projects totaling $200,076,492 were completed in prior years and
  not transferred timely to infrastructure and software. Associated depreciation/amortization of $63,344,342 was
  not recorded on the two assets placed in service. Additionally, consulting expenses of $46,178,896 were
  capitalized in error in prior years. The Authority has restated beginning net position and related notes for the
  year ended September 30, 2023, to correct these errors.

  The overall impact to the changes in net position on the Statement of Revenues, Expenses, and Changes in Net
  Position for the year ending September 30, 2022 is $14,400,815.

  The effect of the correction on beginning net position is detailed below:

  Statement of Rev  enues ,  E xpens es  and Changes  in Net P os tion
  Net position – beginning of year  $  1,998,946,317
  C orre c tion of e rrors  (109,523,238)
  Net pos ition – beginning of year, as  res tated  $  1,889,423,079

  The table below represents the impacts of the error to the opening balances as presented within Footnote 6:


  As  Re  po rte  d  Corre  ction of  Re  s  tate  d
  9/30/2022  E  rro  rs  9/30/2022
  C ons tr uc  tion in P  r ogr e  s s  1,301,581,483  ( 246,255,388)  1,055,326,095
  I nta  ngible  A  s s e  ts  -  Sof tw  a  r e  -  42,470,466  42,470,466
  Infra struc ture  3,213,281,611  157,606,026  3,370,887,637
  A  c  c  umula  te  d D  e  pr e  c  ia  tion/A  mor tiza  tion:
  License agreement/Intangible asset - Software  ( 42,470,466)( 78,945,000)  ( 121,415,466)
  Infra struc ture  ( 1,777,051,373)  ( 20,873,876)  ( 1,797,925,249)






  47

=== PDF PAGE 55 ===
REQUIRED SUPPLEMENTARY INFORMATION


=== PDF PAGE 56 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  A DEPARTMENT OF HARRIS COUNTY, TEXAS
  REQUIRED SUPPLEMENTARY INFORMATION
  SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
  (Amounts in thousands)


  Year Ended  Year Ended  Year Ended  Year Ended  Period Ended  Year Ended
  February 28  February 29  February 28  February 28  September 30  September 30
  2019  2020  2021  2022  2022  2023
TOTAL OPEB LIABILITY
Service cost  79,163$  81,736$  251,727$  209,843$  118,068$  105,268$
Interest cost  70,460  74,038  69,221  91,781  53,688  128,192
Difference between expected and actual experience  -  -  85,687  -  165,734  -
Effect of assumption changes or inputs  -  733,663  397,977  215,789  (1,461,485)  (117,205)
Benefit payments  (55,161)  (58,457)  (62,087)  (67,710)  (40,931)  (73,614)
Net change in total OPEB liability  94,462  830,980  742,525  449,703  (1,164,926)  42,641
Total OPEB liability, beginning  1,827,096  1,921,558  2,752,538  3,495,063  3,944,766  2,779,840
Total OPEB liability, ending (a)  $  1,921,558  $  2,752,538  $  3,495,063  $  3,944,766  $  2,779,840  $  2,822,481

Covered payroll  1,042,892$  1,112,112$  1,164,474$  1,195,886$  1,214,294$  1,337,993$

Total OPEB liability as a % of covered payroll  184.25%  247.51%  300.14%  329.86%  228.93%  210.95%

Notes to schedule

There are no assets in a qualifying trust, as defined by GASB 75, to pay related benefits.

The above schedule represents Harris County's Total OPEB Liability as a whole.

The County implemented GASB 75 in fiscal year 2019.  Information prior to fiscal year 2019
is not available; therefore, ten years of data will accumulate over time.




































  48

=== PDF PAGE 57 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  REQUIRED SUPPLEMENTARY INFORMATION
  SCHEDULE OF CHANGES IN NET PENSION LIABILITY/(ASSET) AND RELATED RATIOS
  LAST EIGHT MEASUREMENT YEARS
  (Amounts in thousands)


  Year Ended December 31

  2015  2016  2017  2018  2019  2020  2021  2022
TOTAL PENSION LIABILITY
Service cost  131,567$  149,334$  146,841$  148,122$  151,462$  163,444$  199,137$  202,068$
Interest on total pension liability  411,525  437,989  468,982  496,916  524,085  553,564  583,779  612,984
Effect of plan changes  (28,883)  -  -  -  -  -  -  -
Effect of assumption changes or inputs  51,149  -  10,614  -  -  440,283  4,607  -
Effect of economic/demographic gains  (7,458)  (27,493)  (6,851)  (8,053)  11,006  19,026  (8,769)  (48,873)
Benefit payments/refunds of contributions  (220,100)  (238,220)  (263,941)  (288,552)  (321,909)  (347,776)  (382,112)  (413,279)
Net change in total pension liability  337,800  321,610  355,645  348,433  364,644  828,541$  396,642$  352,900$
Total pension liability, beginning  5,113,052  5,450,852  5,772,462  6,128,107  6,476,540  6,841,184  7,669,725  8,066,367
Total pension liability, ending (a)  5,450,852$  5,772,462$  6,128,107$  6,476,540$  6,841,184$  7,669,725$  $  8,419,2678,066,367$

FIDUCIARY NET POSITION
Employer contributions  132,346$  136,391$  142,896$  149,663$  167,499$  182,824$  189,304$  198,225$
Member contributions  66,878  68,371  71,869  72,343  77,914  85,012  88,129  88,572
Investment income net of investment expenses  (30,646)  349,499  733,526  (107,132)  908,411  656,508  1,509,284  (477,235)
Benefit payments/refunds of contributions  (220,100)  (238,220)  (263,941)  (288,552)  (321,909)  (347,776)  (382,113)  (413,279)
Administrative expenses  (3,419)  (3,799)  (3,797)  (4,443)  (4,844)  (5,068)  (4,504)  (4,515)
Other  363  (7,961)  (605)  (1,386)  (1,750)  (1,963)  (1,049)  (10,981)
Net change in fiduciary net position  (54,578)  304,281  679,948  (179,507)  825,321  569,537  1,399,051  (619,213)
Fiduciary net position, beginning  4,781,059  4,726,481  5,030,762  5,710,710  5,531,203  6,356,524  6,926,061  8,325,112
Fiduciary net position, ending (b)  4,726,481$  5,030,762$  5,710,710$  5,531,203$  6,356,524$  6,926,061$  8,325,112$  7,705,899$

Net pension liability/(asset), ending = (a) - (b)  724,371$  741,700$  417,397$  945,337$  484,660$  743,664$  (258,745)$  713,368$

Fiduciary net position as a % of total pension liability  86.71%  87.15%  93.19%  85.40%  92.92%  90.30%  103.21%  91.53%

Pension covered payroll  953,501$  974,217$  1,020,708$  1,032,142$  1,110,437$  1,211,895$  1,255,581$  1,263,558$

Net pension liability/(asset) as a % of covered payroll  75.97%  76.13%  40.89%  91.59%  43.65%  61.36%  -20.61%  56.46%

Toll Road's Portion:
Allocated share  3.655%  3.551%  3.761%  3.687%  3.547%  3.457%  3.220%  3.401%
Employer contribution  4,836,751$  4,843,872$  5,374,391$  5,517,510$  5,940,756$  6,319,736$  6,095,363$  6,741,683$
Net pension liability/(asset), ending  26,473,095$  26,341,183$  15,698,382$  34,851,024$  17,189,553$  25,706,453$  (8,331,301)$  24,261,768$


Note:  The County implemented GASB 68 in fiscal year 2016.  Information prior to fiscal year 2016
is not available; ten years of data will accumulate over time.

  49

=== PDF PAGE 58 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  REQUIRED SUPPLEMENTARY INFORMATION
  TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
  SCHEDULE OF EMPLOYER CONTRIBUTIONS
  LAST TEN FISCAL YEARS

  Ac  t  u  a  r  ia  lly  Actual  Contribution  P  ensionable  Actual Contribution
  F  is  c  a  l  Determined  Employer  Deficiency  Covered  as a % of Covered
  Year  Contribution  (1)  Contribution  (1)  (Excess)  P  ayroll  (2)  P  ayroll
  2014  $  92, 818, 576  $  98, 731, 288  $  (5, 912, 712)  $  11. 7%840, 350, 352
  2015  106, 802, 688  110, 837, 562  (4, 034, 874)  871, 490, 916  12. 7%
  2016  132, 345, 738  128, 702, 142  3, 643, 596  925, 999, 776  13. 9%
  2017  132, 006, 399  137, 799, 357  (5, 792, 958)  984, 281, 203  14. 0%
  2018  140, 449, 509  143, 768, 463  (3, 318, 954)  1, 021, 330, 992  14. 1%
  2019  148, 112, 422  152, 053, 334  (3, 940, 912)  1, 041, 771, 836  14. 6%
  2020  157, 570, 971  169, 342, 839  (11, 771, 868)  1, 121, 475, 025  15. 1%
  2021  180, 814, 784  185, 368, 474  (4, 553, 690)  1, 227, 928, 655  15. 1%
  2022  (3)  189, 304, 375  190, 456, 110  (1, 151, 735)  1, 261, 574, 010  15. 1%
  2023  198, 225, 380  197, 327, 647  897, 733  1, 295, 515, 500  15. 2%

Toll Road is an enterprise fund of the County and is included in the above table.  The following table contains Toll Road
specific information:

  F  is  c  a  l  Determined  Employer  Deficiency  Covered  as a % of Covered
  Year  Contribution  Contribution  (Excess)  P  ayroll  P  ayroll
  2015  $  3, 970, 459  $  4, 112, 878  $  (142, 419)  $  12. 7%32, 340, 485
  2016  4, 836, 615  4, 696, 207  140, 408  33, 788, 248  13. 9%
  2017  4, 843, 872  4, 905, 697  (61, 825)  35, 040, 708  14. 0%
  2018  5, 374, 391  5, 410, 071  (35, 680)  38, 434, 810  14. 1%
  2019  5, 517, 510  5, 562, 930  (45, 420)  38, 120, 469  14. 6%
  2020  5, 940, 756  5, 994, 354  (53, 598)  39, 711, 011  15. 1%
  2021  6, 319, 736  6, 330, 209  (10, 473)  41, 922, 038  15. 1%
  2022  (3)  6, 095, 363  6, 101, 690  (6, 327)  40, 412, 464  15. 1%
  2023  6, 741, 683  7, 260, 139  (518, 456)  47, 695, 046  15. 2%


  A n a dditiona l ye a r  f or  the  Toll R oa d A uthor ity w ill be  a dde d a s  it be c ome s  a va ila ble .
  (1)  TCDRS calculated actuarially determined contributions on a calendar year basis.  GASB Statement No. 68
  indic a te s  the  e mploye r  s hould r e por t e mploye r  c ontr ibution a mounts  on a  f is c a l ye a r  ba s is .
  ( 2)  P  a yr oll is  c a lc ula te d ba s e d on c ontr ibutions  a s  r e por te d to TC D R S f or  the  f is c a l ye a r .
  ( 3)  A s  of  Se pte mbe r  30, 2022 the r e  w a s  no ne w  a c tua r ia l va lua tion f or  TC D R S.  The  a c tua l e mploye r  c ontr ibution f or  the  7 month
  pe r iod e nde d Se pte mbe r  30, 2022 w a s  $121,477,256 f or  the  C ounty a nd $4,164,508 f or  the  A uthor ity.

Notes to Schedule

Valuation date:  Actuarially determined contribution rates are calculated each  December 31,
  two years prior to the end of the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates  :

Actuarial cost method  Entry Age

Amortization method  Level percentage of payroll, closed

Remaining amortization period  18.  0 years (based on contribut ion rate calculated in 12/31/2022  valuation)


  50

=== PDF PAGE 59 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  REQUIRED SUPPLEMENTARY INFORMATION
  TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM
  SCHEDULE OF EMPLOYER CONTRIBUTIONS
  LAST TEN FISCAL YEARS
Asset valuation method  5-year smoothed market

Inflation  2.50%

Salary increases  Varies by age and service.  4.  7% average over career including inflation.

Investment rate of return  7.50%, net of investment expenses, including inflation

Retirement age  Members who are eligible for service retirement are assumed to commence  receiving
  benefit payments based on age.  The average age at service retirement for recent
  retirees is 61.

Mortality  135% of the Pub-  2010 General Retirees Table for males and 120% of the Pub-  2010
  General Retirees Table for females, both projected with 10 0% of the MP -2021
  Ultimate scale after 2010.

Changes in Assumpt ions and  2015:  New inflation, mortality and other assumptions were reflected.
Methods Reflected in the
Schedule of Employer  2017:  New mor tality assumptions were reflected.
Contributions*
  2019:  New inflation, mortality and other assumptions were reflected.

  2022:  New investment return and inflation assumption were reflected.

Changes in Plan Provisions  2015:  Employer  contributions reflect that the member contribution rate was increased
Reflected in the Schedule of  to 7%.
Employer Contributions*
  2016:  No changes in plan provisions were reflected in the Schedule.

  2017:  New Annuity Purchase Rates were reflected for b enefits earned after 2017.

  2018:  No changes in plan provisions were reflected in the Schedule.

  2019:  No changes in plan provisions were reflected in the Schedule.

  2020:  No changes in plan provisions were reflected in the Schedule.

  2021:  No changes in plan provisions were reflected in the Schedule.

  2022:  No changes in plan provisions were reflected in the Schedule.

*Only changes that affect the benefit amount and that are effective 2015 and later are shown in the Notes to Schedule.














  51

=== PDF PAGE 60 ===
52

=== PDF PAGE 61 ===
OTHER INFORMATION

=== PDF PAGE 62 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Traffic Count Table
  Schedule 1



  February 29  February 28  February 28  September 30  September 30
Component/Segment (a)  2020  2021 (c)  2022  2022 (d)  2023
Hardy Toll Road-North  27,133,093  17,482,032  25,733,847  17,136,593  28,958,568
Hardy Toll Road-South  31,349,380  18,020,039  28,151,054  18,400,673  32,040,280
Sam Houston Tollway-South  84,766,812  70,947,261  87,856,146  51,704,213  87,616,841
Sam Houston Tollway-Central  65,432,094  53,118,468  66,203,205  39,612,189  67,473,544
Sam Houston Tollway-North  84,882,096  71,793,756  86,962,566  52,201,005  88,597,047
Sam Houston Ship Channel Bridge  20,618,900  17,197,670  21,346,309  13,638,387  23,474,721
Sam Houston Tollway-NorthEast  31,693,019  28,650,612  36,018,557  22,352,587  38,707,342
Sam Houston Tollway-East  29,845,978  24,725,798  30,745,492  20,062,138  35,149,200
Sam Houston Tollway-South/East  38,340,883  34,045,308  43,184,077  26,541,363  45,099,587
Sam Houston Tollway-South/West  49,058,170  42,486,196  52,861,714  31,859,245  54,703,087
Westpark Tollway  55,040,590  43,279,703  59,716,443  36,744,797  63,888,381
Fort Bend Parkway Extension (Spur 90A)  5,799,850  4,377,608  5,492,986  3,347,600  5,974,632
Katy Managed Lanes (b)  33,174,279  15,361,123  28,610,665  18,671,130  34,074,955
Tomball Tollway  19,989,976  19,783,085  26,589,442  16,326,520  32,327,669
  Total  577,125,120  461,268,659  599,472,503  368,598,440  638,085,854

(a) Some transactions occurred during toll waiver periods as approved by Commissioners Court.
(b) Katy Managed Lanes include High Occupancy Vehicle non-toll transactions.
(c) The significant decrease from 2020 to 2021 is due to the COVID-19 pandemic impact.
(d) The Authority changed its fiscal year-end from February 28/29 to September 30 year-end.  This reflects a short 7-month period,
  and then subsequent to that a full 12 months ended 9/30.


























  53

=== PDF PAGE 63 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Toll Rate Schedule
  Schedule 2


  Toll Rate Schedule Effective September 12, 2015 - September 3, 2023

  Cash/Attended/Automatic  EZ TAG
  Coin Machine Lanes (a)  Lanes (b)
Two Axle Vehicles
Sam Houston Tollway and Hardy Toll Road Plazas  $  1.00 - 1.75  $  0.50 - 1.50
Sam Houston Ship Channel Bridge  N/A  1.50
Westpark Tollway  N/A  0.40 - 1.50
Fort Bend Parkway Extension (Spur 90A)  1.75  1.50
Katy Managed Lanes  N/A  0.30 - 3.20
Tom ball Tollway (c)  N/A  0.50 - 1.50

Three to Six Axle Vehicles
Sam Houston Tollway and Hardy Toll Road Plazas  1.25 - 8.75  1.25 - 8.75
Sam Houston Ship Channel Bridge  N/A  3.50 - 8.75
Westpark Tollway  N/A  1.00 - 8.75
Fort Bend Parkway Extension (Spur 90A)  N/A  3.50 - 8.75
Katy Managed Lanes  N/A  7.00
Tom ball Tollway (c)  N/A  1.25 - 8.75

(a)  This column consolidates the columns "Attended Lanes" and  "Exact Change Lanes" in previously published
  versions of Schedule 2.
(b)  These rates do not include amounts charged for toll violations.
(c)  In September 2019, the Tomball Tollway Phase 2 opened up two new ramps with toll rates approved by
  Commissioners Court on July 30, 2019 that conformed with rates established on existing sections of the HCTRA
  system.







  Toll Rate Schedule Effective September 4, 2023

  EZ TAG and  Pre-Registered  3rd Party  Invoiced
  other AVI (a) (e)  Plate (b)  Service (c)  Image  (d)
Two Axle Vehicles
Sam Houston Tollway and Hardy Toll Road Plazas  $  0.45 - 1.50  $  0.65 - 1.80  $  0.70 - 1.88  $  1.00 - 3.00
Sam Houston Ship Channel Bridge  1.35 - 1.50  1.80  1.88  3.00
Westpark Tollway  0.36 - 1.50  0.55 - 1.80  0.60 - 1.88  0.90 - 3.00
Fort Bend Parkway Extension (Spur 90A)  1.35 - 1.50  1.80  1.88  3.00
Tom ball Tollway  0.45 - 1.50  0.65 - 1.80  0.70 - 1.88  1.00 - 3.00

Three to Eight Axle Vehicles
Sam Houston Tollway and Hardy Toll Road Plazas  1.00 - 12.25  1.30 - 14.70  1.40 - 15.33  2.00 - 24.50
Sam Houston Ship Channel Bridge  4.00 - 14.00  4.80 - 16.80  5.00 - 17.50  8.00 - 28.00
Westpark Tollway  1.00 - 12.25  1.30 - 14.70  1.40 - 15.33  2.00 - 24.50
Fort Bend Parkway Extension (Spur 90A)  3.50 - 12.25  4.20 - 14.70  4.38 - 15.33  7.00 - 24.50
Tom ball Tollway  1.00 - 12.25  1.30 - 14.70  1.40 - 15.33  2.00 - 24.50


(a)  EZ TAG and Other AVI: A ten percent EZ Tag discount rate applies solely to two-axle vehicles with EZ Tag transponders. Image
  transactions where license plates are linked to existing AVI accounts are charged the same rate as AVI transactions.
(b)  Pre-Registered Plate: Image transactions for license plate numbers which have been pre-registered in a HCTRA operated guaranteed
  payment system, which are charged a rate which is 1.2 times the AVI rate.
(c)  3rd Party Service: Image transactions for which guaranteed toll payment is made by a third-party service provider, which are charged a
  rate which is 1.25 times the AVI rate.
(d)  Invoiced Image: Image transactions which do not fall into any of the above categories and require HCTRA invoicing of vehicle owners
  and collection of payments, which are charged a rate which is 2.0 times the AVI rate.
(e)  Katy Managed Lanes: The toll rates for the Katy Managed Lanes are excluded from the table above because they are managed rates set
  based upon "time of day" pricing and vehicle occupancy, not the Toll Policy.





  54

=== PDF PAGE 64 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Toll Road Selected Financial Information
  Schedule 3

  February 29  February 28  February 28  September 30  September 30
  2020  2021  2022  2022 (b)  2023
Operating Revenues
  Toll revenues  $  854,849,072  $  551,278,046  $  808,931,881  $  532,151,298  $  896,351,094
  Total Operating Revenues  854,849,072  551,278,046  808,931,881  532,151,298  896,351,094
Operating Expenses
  Salaries  73,982,379  84,322,777  74,372,273  40,501,868  80,707,014
  Materials and supplies  13,044,999  16,626,507  26,143,034  13,233,260  29,375,689
  Services and fees  159,654,875  143,149,145  164,090,917  106,470,753  213,416,742
  Utilities  3,157,418  2,443,633  3,267,504  2,000,241  4,255,000
  Transportation and travel  5,432,970  2,636,579  3,639,196  2,430,384  4,356,186
  Depreciation and Amortization  91,575,141  76,551,284  109,661,003  52,549,680  113,765,482
  Total Operating Expenses  346,847,782  325,729,925  381,173,927  217,186,186  445,876,113
Income from Operations  508,001,290  225,548,121  427,757,954  314,965,112  450,474,981
Nonoperating Revenues
  Investment income  41,977,195  11,028,413  3,289,821  1,562,418  36,900,982
  Lease revenues  12,915  8,640  8,640  4,946  8,479
  Miscellaneous Income  4,311,958  1,158,968  2,571,734  1,653,068  1,944,159
  Gain on disposal of capital assets  -  22,789  56,208  181,937  454,570
  Total Nonoperating Revenues  46,302,068  12,218,810  5,926,403  3,402,369  39,308,190
Nonoperating Expenses
  Interest expense  80,383,865  73,769,602  83,303,263  50,466,318  73,091,761
  Debt service fees  696,525  2,937,367  34,537  1,540,276  1,435,466
  Bond refunding loss amortization  4,055,218  4,056,039  3,487,377  1,676,709  1,315,068
  Loss on disposal of capital assets  -  -  -  -  3,846,586
  Other nonoperating expenses  6,106,568  -  -  -  -
  Total Nonoperating Expenses  91,242,176  80,763,008  86,825,177  53,683,303  79,688,881
Net Income Before
  Transfers Out  463,061,182  157,003,923  346,859,180  264,684,178  410,094,290
Transfers Out (a)  (136,866,977)  (545,148,289)  (253,954,915)  (123,907,635)  (369,300,000)
Change in Net Position  $  326,194,205  $  (388,144,366)  $  92,904,265  $  140,776,543  $  40,794,290



(a)  Commissioners Court annually authorizes the transfer of Harris County Toll Road Authority net income for funding of County
  thoroughfares that enhance traffic flow to current and proposed toll facilities and to increase mobility.
(b)  The Authority changed its fiscal year-end from February 28/29 to September 30 year-end.  This reflects a short 7-month period.
  and then subsequent to that a full 12 months ended 9/30.
Note: Per Note 13, a restatement occurred as of 9/30/2023 that affected previous fiscal years.  These changes are not reflected within this schedule.













  55

=== PDF PAGE 65 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Historical Toll Road Operating Results and Coverages
  Schedule 4
  (Unaudited)

  (a)  (b)  Revenues  Coverage
  Debt Service  Available For  Ratio On
  Senior & 1st  Coverage Ratio On  Unlimited  Debt  Unlimited
 FY/Period  Project  Other  Lien Revenue  Senior & 1st Lien  O & M  Subordinate  Service  Subordinate
  Ended  Revenues  Earnings  Bonds  Revenue Bonds  Expenses  Lien Tax Bonds  Tax Bonds  Lien Tax Bonds
  2015  $  688,920,884  $  20,493,426  $  141,159,484  5.026  $  154,740,075  $  413,514,751  $  82,855,667  4.991
  2016  759,275,927  18,979,897  142,199,571  5.473  203,809,584  432,246,669  58,516,811  7.387
  2017  774,025,958  26,195,433  148,479,580  5.389  215,238,531  436,503,280  42,799,012  10.199
  2018  740,272,353  14,522,053  148,108,962  5.096  184,590,613  422,094,831  41,737,732  10.113
  2019  828,453,739  37,403,371  162,106,225  5.341  208,141,566  495,609,319  41,187,050  12.033
  2020  854,849,072  41,990,110  158,131,539  5.671  226,793,851  511,913,792  40,622,562  12.602
  2021  551,278,046  11,037,053  156,572,551  3.591  226,169,213  179,573,335  40,049,775  4.484
  2022  808,931,881  5,926,403  182,769,421  4.458  241,622,422  390,466,441  28,930,612  13.497
  9/30/2022  (c)  532,151,298  3,402,369  111,310,085  4.811  144,247,701  279,995,881  24,727,591  11.323
  2023  896,351,094  38,853,620  156,393,815  5.980  266,578,207  512,232,692  28,622,863  17.896

(a) Total investment income less interest revenue from the Office Building.  Includes lease revenue income and intergovernmental income.
(b) O&M expenses are from TRA Operations and Maintenance funds.
(c) The Authority changed its fiscal year-end from February 28/29 to September 30 year-end.  This reflects a short 7-month period, and then subsequent to that a full 12 months ended 9/30.



















  56

=== PDF PAGE 66 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Revenues by Toll Road Components/Segments
  Schedule 5



  February 29  February 28  February 28  September 30  September 30
Component/Segment (a)  2020  2021  2022  2022 (d)  2023
Hardy Toll Road-North  40,617,925$  24,849,542$  40,482,057$  27,909,614$  43,683,294$
Hardy Toll Road-South (b)  42,946,953  23,854,633  41,476,186  27,838,734  44,558,745
Sam Houston Tollway-South  115,747,311  83,248,148  120,574,460  74,704,542  116,105,595
Sam Houston Tollway-Central  97,750,459  70,099,960  101,735,211  63,790,529  99,742,384
Sam Houston Tollway-North  122,846,069  90,148,025  129,143,357  81,745,873  126,530,326
Sam Houston Ship Channel Bridge  33,894,005  26,771,401  39,015,609  26,133,519  41,310,317
Sam Houston Tollway-East  44,351,041  32,271,153  46,928,255  32,118,434  51,962,394
Sam Houston Tollway-South/East  56,880,435  43,726,878  65,054,773  42,165,941  66,099,847
Sam Houston Tollway-South/West  66,470,743  48,895,404  72,607,308  46,400,924  73,729,011
Sam Houston Tollway-North/East  41,792,403  34,141,237  49,348,796  32,190,129  51,673,029
Westpark Tollway  66,271,270  47,193,811  73,466,948  47,010,044  76,297,447
Fort Bend Parkway Extension (Spur 90A)  8,273,271  5,707,999  8,149,768  5,078,911  8,474,676
Katy Managed Lanes  20,736,704  8,867,781  18,648,110  12,399,470  20,442,233
Tomball Tollway  29,046,504  25,223,306  37,611,849  23,569,371  44,165,933
Administration (c)  42,324,975  (67,179,469)(33,242,723)  (32,512,204)  (10,553,090)
IOP-CTRMA  1,012,457  783,391  1,407,012  965,522  1,786,141
IOP-Fort Bend County  4,657,515  3,580,328  4,751,940  2,943,124  5,391,543
IOP-KTA  34,808  31,769  44,123  30,059  54,360
IOP-MCTRA  91,210  784,863  1,228,090  812,774  1,598,189
IOP-METRO  647,665  160,008  357,013  266,379  531,967
IOP-NTTA  4,247,555  3,300,657  4,880,037  3,507,770  6,605,113
IOP-TTA  14,161,252  10,407,622  15,601,249  10,306,606  20,454,626
IOP-OTA  46,542  51,538  88,696  84,288  250,664
IOP - BCTRA  -  114,515  794,878  632,924  1,229,074
IOP - BTG  -  306,799  2,715,625  2,058,021  4,227,276
  Total  $  854,849,072  $  551,278,046  $  808,931,881  $  532,151,298  $  896,351,094


(a)  IOP toll revenue is accounted for in the respective Toll Road Toll Plaza for each IOP Agency during FY 2018-FY2022.  IOP toll revenue and IOP
  revenues are attributable to the Toll Interoperability Program, pursuant to various agreements.
(b)  Includes toll revenues collected for the Airport Connector.
(c)  During the COVID-19 emergency declaration, administrative fees associated to violations were waived and no related revenue was generated. This
  consists of allowance for uncollectible accounts on toll violation (VEC) revenue administrative fees (excluding tolls), EZ tag sales fees, and
  other miscellaneous revenues.
(d)  The Authority changed its fiscal year-end from February 28/29 to September 30 year-end.  This reflects a short 7-month period, and then
  subsequent to that a full 12 months ended 9/30.















  57

=== PDF PAGE 67 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  Toll Road Bonds Debt Service Requirements
  Schedule 6


  Total Toll Road Unlimited Tax &  Total Toll Road
Fiscal  Subordinate Lien Revenue Bonds  Senior & 1st Lien Revenue Bonds  Total Toll Road Bonds Debt Service
  Year  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total
  2024  21,165,000$  6,846,944$  28,011,944$  72,275,000$  86,625,900$  158,900,900$  93,440,000$  93,472,844$  186,912,844$
  2025  12,070,000  5,747,175  17,817,175  77,405,000  83,012,150  160,417,150  89,475,000  88,759,325  178,234,325
  2026  12,090,000  5,113,500  17,203,500  82,280,000  79,141,900  161,421,900  94,370,000  84,255,400  178,625,400
  2027  12,115,000  4,478,775  16,593,775  86,340,000  75,077,900  161,417,900  98,455,000  79,556,675  178,011,675
  2028  12,135,000  3,842,738  15,977,738  90,635,000  70,760,900  161,395,900  102,770,000  74,603,638  177,373,638
  2029  12,160,000  3,205,650  15,365,650  95,180,000  66,229,150  161,409,150  107,340,000  69,434,800  176,774,800
  2030  12,185,000  2,567,250  14,752,250  99,980,000  61,470,150  161,450,150  112,165,000  64,037,400  176,202,400
  2031  12,210,000  1,927,537  14,137,537  104,960,000  56,471,150  161,431,150  117,170,000  58,398,687  175,568,687
  2032  12,240,000  1,286,513  13,526,513  51,223,150110,250,000  161,473,150  122,490,000  52,509,663  174,999,663
  2033  12,265,000  643,912  12,908,912  115,730,000  45,710,650  161,440,650  127,995,000  46,354,562  174,349,562
  2034  -  -  -  61,475,000  40,044,100  101,519,100  61,475,000  40,044,100  101,519,100
  2035  -  -  -  63,555,000  37,095,200  100,650,200  63,555,000  37,095,200  100,650,200
  2036  -  -  -  69,320,000  34,047,400  103,367,400  69,320,000  34,047,400  103,367,400
  2037  -  -  -  60,660,000  30,882,800  91,542,800  60,660,000  30,882,800  91,542,800
  2038  -  -  -  63,035,000  28,565,850  91,600,850  63,035,000  28,565,850  91,600,850
  2039  -  -  -  52,005,000  26,155,300  78,160,300  52,005,000  26,155,300  78,160,300
  2040  -  -  -  53,970,000  23,863,250  77,833,250  53,970,000  77,833,25023,863,250
  2041  -  -  -  48,540,000  21,476,350  70,016,350  48,540,000  21,476,350  70,016,350
  2042  -  -  -  53,995,000  19,214,550  73,209,550  53,995,000  19,214,550  73,209,550
  2043  -  -  -  56,360,000  16,749,550  73,109,550  56,360,000  16,749,550  73,109,550
  2044  -  -  -  58,715,000  14,172,100  72,887,100  58,715,000  14,172,100  72,887,100
  2045  -  -  -  61,155,000  11,723,450  72,878,450  61,155,000  11,723,450  72,878,450
  2046  -  -  -  63,490,000  9,170,800  72,660,800  63,490,000  9,170,800  72,660,800
  2047  -  -  -  65,990,000  6,562,150  72,552,150  65,990,000  6,562,150  72,552,150
  2048  -  -  -  52,695,000  3,847,300  56,542,300  52,695,000  3,847,300  56,542,300
  2049  -  --  25,325,000  1,816,750  27,141,750  25,325,000  1,816,750  27,141,750
  2050  -  -  -  23,435,000  883,300  24,318,300  23,435,000  883,300  24,318,300
  Total  130,635,000$  35,659,994$  166,294,994$  1,868,755,000$  1,001,993,200$  2,870,748,200$  1,999,390,000$  1,037,653,194$  3,037,043,194$




  58

=== PDF PAGE 68 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND
  OF HARRIS COUNTY, TEXAS
  OUTSTANDING TOLL ROAD TAX BONDS
  Schedule 7

The  Series 1997  and  Series 2007C  Tax Bonds  are collectively referred to as the “Toll Road Tax
Bonds”.
  Outs  tandi  ng
  P r i  nc i  pal  Amount
  Issue  Date Is  s  ued  at September 30, 2023
  Harris  County, Texas , Toll Road Unlimited
  Tax and Subordinate Lien Revenue
  Bo  n  d  s  , S e  rie  s  1997  A  u  g  u  s  t  1997  9,115,000$

  Harris  County, Texas , Toll Road Unlimited
  Tax and Subordinate Lien Revenue
  Refunding Bonds , Series  2007C  A  u  g  u  s  t  2007  121,520,000$

  TOTA L  130,635,000$




































  59

=== PDF PAGE 69 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND
  OF HARRIS COUNTY, TEXAS
  OUTSTANDING TOLL ROAD SENIOR& FIRST  LIEN REVENUE BONDS
  Schedule 8

The  Series 2015B, Series 2016A, Series 2018A, and  Series 2019A are  referred to as the  “Senior
Lien Revenue Bonds”.  The Series 2021,  Series 2022A, Series 2023A  are referred to as the “First
Lien Revenue Bonds”.
  Outstanding
  Principal Amount
  Issue  at September 30, 2023


  Harris County, Texas, Toll Road Senior Lien Revenue
  Refunding Bonds Series 2015B  133,450,000$
  Refunding Bonds Series 2016A  459,365,000
  Refunding Bonds Series 2018A  478,850,000
  Refunding Bonds Series 2019A  79,750,000

  Harris County, Texas, Toll Road First Lien Revenue
  Refunding Bonds Series 2021  405,830,000
  Refunding Bonds Series 2022A  192,015,000
  Refunding Bonds Series 2023A  119,495,000

  TOTAL  1,868,755,000$

























  60

=== PDF PAGE 70 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  OPERATING FUNDS BUDGET FOR THE COUNTY'S FISCAL YEAR 2023-2024
  Schedule 9


On September 19,  2023 the Commissioners Court adopted the budget for the County for the Fiscal Year 2023-
2024. The Fiscal Year budget included appropriations for some capital projects, which are financed from current
revenues. The following is a summary of the Fiscal Year 2023-2024 budget for the County's Current Operating
Fund:


  Cash Balance as of October 1, 2023  $  351,635,668
  Estimated Revenues:
  Ad Valorem and Miscellaneous Taxes  1,918,858,041
  Charges for Services  288,103,955
  Fines and Forfeitures  15,135,500
  Intergovernmental Revenues  81,342,172
  Interest  29,186,350
  Other  55,442,745
  Total Cash and Estimated Revenues  $  2,739,704,431

  Appropriations:
  Current Operating Expenses  $  2,725,294,329
  Capital Outlay:
  Roads  3,923,315
  Parks  10,486,787
  Total Appropriations  $  2,739,704,431
































  61

=== PDF PAGE 71 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  COUNTY CAPITAL PROJECTS FUNDS BUDGETING
  Schedule 10


  County Capital Projects Funds are used in projects including construction of roads, office and court
  buildings, jails, juvenile home facilities, parks and libraries.  Cash and investments on hand in the Capital
  Projects Funds at September 30, 2023  derived  from the sale of bonds and other sources and the
  investment income (except investment income may be used for debt service) thereon, are designated to
  be spent over a period of several years for the following purposes:

  Roads  184,718,229$
  P ermanent Improvements  51,215,863
  Flood Control  403,410,544
  To t a l  639,344,636$









































  62

=== PDF PAGE 72 ===
TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  COUNTY TAX DEBT OUTSTANDING
  Schedule 11


  County's Total
  Outstanding
  Tax Debt (a)

Limited Tax Debt  $  891,456,318
Unlimited Tax Debt  769,205,000
Flood Control  317,320,000
Toll Road Tax Bonds  130,635,000
  Total  $  2,108,616,318
Less:  Toll Road Tax Bonds  (130,635,000)
Total (Approximately 0.26% of 2022 Assessed Value)  $  1,977,981,318


(a) Excluding Flood Control District debt of $1,009,015,000 paid for by the District's
  ad valorem tax revenues.  Amounts expressed at gross value, not considering
  unamortized premium or discount or accretion of capital appreciation bonds.



































  63

=== PDF PAGE 73 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  SCHEDULE OF COUNTY-WIDE AD VALOREM TAX DEBT SERVICE REQUIREMENTS
  SCHEDULE 12
  (amounts in thousands)


  Toll Road Unlimited Tax &
Fiscal  Limited Tax Debt  Unlimited Tax Debt  Subordinate Lien Revenue Bonds  Flood Control (a)  Total County-Wide Tax Debt
Year  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total
2024  $  54,097  $  52,833  $  106,930  $  34,975 $  35,578  $  70,553  $  21,165  $  6,847 $  28,012  $  53,145  $  59,489  $  112,634  $  163,382  $  154,747  $  318,129
2025  82,624  49,693  132,317  48,960  33,286  82,246  12,070  5,747  17,817  57,625  55,349  112,974  201,279  144,075  345,354
2026  63,935  34,577  98,512  53,885  30,723  84,608  12,090  5,114  17,204  53,675  52,725  106,400  183,585  123,139  306,724
2027  89,320  30,773  120,093  58,495  27,950  86,445  12,115  4,479  16,594  58,040  50,122  108,162  217,970  113,324  331,294
2028  53,640  40,884  94,524  59,280  25,009  84,289  12,135  3,843  15,978  61,675  47,136  108,811  186,730  116,872  303,602
2029  63,445  24,505  87,950  60,220  22,025  82,245  12,160  3,206  15,366  64,385  43,992  108,377  200,210  93,728  293,938
2030  44,885  21,826  66,711  50,780  19,253  70,033  12,185  2,567  14,752  65,210  40,759  105,969  173,060  84,405  257,465
2031  46,980  19,580  66,560  49,110  16,760  65,870  12,210  1,928  14,138  54,365  37,947  92,312  162,665  76,215  238,880
2032  49,125  17,248  66,373  50,195  14,311  64,506  12,240  1,287  13,527  42,750  35,696  78,446  154,310  68,542  222,852
2033  24,355  14,974  39,329  26,605  12,434  39,039  12,265  644  12,909  44,890  33,561  78,451  108,115  61,613  169,728
2034  21,725  13,755  35,480  27,930  11,093  39,023  -  -  -  47,045  31,416  78,461  96,700  56,264  152,964
2035  22,780  12,678  35,458  29,320  9,685  39,005  -  -  -  49,200  29,220  78,420  101,300  51,583  152,883
2036  23,890  11,549  35,439  13,350  8,662  22,012  -  -  -  51,460  26,984  78,444  88,700  47,195  135,895
2037  23,190  10,431  33,621  13,925  8,084  22,009  -  -  -  53,700  24,699  78,399  90,815  43,214  134,029
2038  24,275  9,339  33,614  14,490  7,520  22,010  -  -  -  56,050  22,300  78,350  94,815  39,159  133,974
2039  25,400  8,206  33,606  15,075  6,932  22,007  -  -  -  58,515  19,855  78,370  98,990  34,993  133,983
2040  26,555  7,038  33,593  15,640  6,364  22,004  -  -  -  60,960  17,362  78,322  103,155  30,764  133,919
2041  27,740  5,834  33,574  16,230  5,773  22,003  -  -  -  48,175  15,133  63,308  92,145  26,740  118,885
2042  18,895  4,852  23,747  16,845  5,157  22,002  -  -  -  50,000  13,296  63,296  85,740  23,305  109,045
2043  19,640  4,116  23,756  17,490  4,516  22,006  -  -  -  51,870  11,321  63,191  89,000  19,953  108,953
2044  20,385  3,336  23,721  18,185  3,818  22,003  -  -  -  53,970  9,171  63,141  92,540  16,325  108,865
2045  17,015  2,581  19,596  18,960  3,048  22,008  -  -  -  56,190  6,915  63,105  92,165  12,544  104,709
2046  17,715  1,878  19,593  19,755  2,245  22,000  -  -  -  58,505  4,567  63,072  95,975  8,690  104,665
2047  15,370  1,190  16,560  20,595  1,406  22,001  -  -  -  44,850  2,444  47,294  80,815  5,040  85,855
2048  14,475  536  15,011  18,910  559  19,469  -  -  -  30,085  901  30,986  63,470  1,996  65,466
Total  $  891,456  $  404,212  $  1,295,668  $  769,205  $  322,191  $  1,091,396  $  130,635  $  35,662  $  166,297  $  1,326,335  $  692,360  $  2,018,695  $  3,117,631  $  1,454,425  $  4,572,056


  (a) Includes Flood Control District debt paid for by the District's ad valorem tax revenues and debt paid for by the County's ad valorem tax revenues as a result of refunded commercial paper.

















  64

=== PDF PAGE 74 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND
  OF HARRIS COUNTY, TEXAS
  COUNTY-  WIDE  A  UTHORIZEDBUT  U  NISSUEDB  ONDS
  Schedule 13
  (Amounts in Thousands)

As of September  30, 2023, the following County-  wide ad valorem tax bonds authorized by the
voters at elections held in September 1983, November 1999, November 2007, November 2015,
August 2018,and November 2022 remain unissued.

The Table reflects the County’s use of voted authority when it  issues general obligation commercial
paper notes pursuant to its Series B (parks and libraries), Series C (roads and bridges), Series D
(parks and libraries) and Series D-3 (roads and bridges) programs.

  County Ad Valorem T  ax Bonds
  Limited T  ax:
  Civil Justice Center  33, 000$
  P  arks  211, 968
  Forensic Lab  5, 180
  Family Law Center  70, 000
  P  ublic Safety  100, 000
  T  otal Limited T  ax Bonds  420, 148$
  Unlimited T  ax:
  Road Bonds  1, 283, 330
  T  otal Unlimited T  ax Bonds  1, 283, 330
  Combination Unlimited T  ax and Revenue:
  T  oll Roads  15, 148
  T  otal Unlimited T  ax and Revenue Bonds  15, 148
  Harris County Flood Control District Limited T  ax Bonds:
  Flood Bonds  1, 491, 775
  T  otal Flood Control Limited T  ax Bonds  1, 491, 775
  T  otal Authorized but Unissued Bonds  3, 210, 401$



















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=== PDF PAGE 75 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION/PROGRAM
  LAST TEN FISCAL YEARS
  Schedule 14




  2015  2016  2017  2018  2019  2020  2021  2022  9/30/22 *  2023
Administration of Justice  9,625  9,768  9,824  10,275  10,181  10,909  11,194  11,115  10,937  10,883
Parks  805  867  892  913  924  899  613  587  554  614
County Administration  3,166  3,280  3,406  3,460  3,481  3,054  3,222  3,331  3,416  3,587
Health and Human Services  1,369  1,432  1,450  1,488  1,487  1,622  1,582  1,653  1,667  1,793
Flood Control  291  287  293  290  316  325  331  347  350  329
Tax Administration  348  368  353  368  365  418  382  377  371  392
Roads and Bridges  448  451  563  568  542  659  489  364  381  371




Note:  (1)  As of September 30, 2023, it is estimated that approximately 5,501 of the County's employees were members of various labor organizations, some
  of which are unions affiliated with the AFL-CIO.  The County does not maintain collective bargaining agreements with any unions.
  (2)  This schedule represents the number of County employees at the end of each fiscal year.
  *The Authority changed its fiscal year-end from February 28/29 to September 30 year-end.  This reflects a short 7-month period.

Source: Harris County HR and Payroll system
















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