
=== PDF PAGE 1 ===


=== PDF PAGE 2 ===
  Toll Road Authority

  Enterprise Fund of Harris
  County, Texas
  Financial Statements As of September  30, 2025
  and for the Year Then Ended and Independent
  Auditor’s Report

=== PDF PAGE 3 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  BASIC FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED  SEPTEMBER 30, 2025
  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:
Financial Statements
S  tatement of Net Position  15
Statement of Revenues, Expens  es 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  27
  4.  Prepaids and Other Assets  28
  5.  Capital Assets  28
  6.  Long-  term Liabilities  29
  7.  Retirement Plan  34
  8.Other Poste  mployment Benefits  39
  9.Commitments  and Contingencies  46
  10.Transfers and Advances  46
  11. Recent Accounting Pronouncements  46
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  153
Toll Rate Schedule  254
Toll Road Selected Financial Information  3  55
Historical Toll Road 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 & First Lien Revenue Bonds  8  60








  i

=== PDF PAGE 4 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  BASIC FINANCIAL STATEMENTS
  FOR THE FISCAL YEAR ENDED  SEPTEMBER 30, 2025
  TABLE OF CONTENTS (Continued)

Other Information (Continued)  Schedule  PAGE

Operating Funds Budget for the County’s Fiscal  Year 2025-  2026  9  61
County Capital Projects Funds Budgeting  1062
County Tax Debt Outstanding  11  63
Schedule of Countywide Ad Valorem Tax Debt Service Requirements  12  64
Countywide Authorized but Unissued Bonds  13  65
Full-Time Equivalent County Employees by Function/Program -  Last
  Ten Fiscal Years  1466

















































  ii

=== PDF PAGE 5 ===
  I
  N
  T
  R
  O
  D
  U
  C
  T
  O
  R
  Y

  S
  E
  C
  T
  I
  O
  N

=== PDF PAGE 6 ===
  Leslie Wilks, M.Jur., CPA, CFE  Glenn Holloway, CPA, CIA, CFE
  First Assistant County Auditor  Chief Assistant County Auditor –  Audit Division

  Sharon Brantley Smith, MBA, CIA, CFE
  Chief Assistant County Auditor –  Harris Health


  M  ICHAEL  P  OST  ,  CPA,  CIA
  HARRIS  COUNTY  AUDITOR



  April 7, 2026

  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 Enterprise Fund (the  “  Authority”), a department of
  Harris County, Texas (the “  County”)  for the fiscal year ended September 30  ,  2025. 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  accepted 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
  representations,  management of the Authority  has established a comprehensive internal control framework
  that is designed both to protect the  Authority’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 misstatement.

  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  25,  are free of material misstatement.  The independent
  auditor concluded based upon the audit that there was a reasonable basis for rendering an un  modified  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.







  1001 Preston, Suite 800
  Houston, Texas 77002-  1817
  (832) 927-  4600 | Fax (713) 755-8932 | Help Line (832) 927-  4558

  1

=== PDF PAGE 7 ===
  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.

The Authority operates and maintains the following  roadways.  The six -mile  Tomball Tollway  opened in
2015  along the State Highway  249 corridor between S  pring 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 Interstate  610  and extends to the C  ounty 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  connection  to George Bush Intercontinental Airport.  The Fort Bend Parkway
extension (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  5 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
38%  growth since 200  4.  Over a  20-year period, Harris County’s population has grown more than  twice  as
fast 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 2004-2024



  16%
  38%
  0%
  -1%


  -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 Executive
Director, as  follows:  (i) Administration; (ii) Capital Planning; (iii) Capital Projects & Infrastructure  ; (iv)
Tolling Operations ; (v) Public Safety & Operations; (vi)  Communications ; and (vii) Finance & Strategic
Operations Support .  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, 202 5, the Authority had  944  full-  time employees; in addition, the Authority had  143  open full -time
positions  that it plans to fill during the next fiscal year.






  2

=== PDF PAGE 8 ===
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  /expenses  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 debts  ,  for  intergovernmental contracts, and for  new source s of  revenue not
anticipated at the original budget adoption.  Encumbrance accounting 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 relative ly 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  $697  billion.  Twenty-six
companies on the 2025  Fortune 500 list  are headquartered in the  Houston area.  No single industry dominates
Houston employment.

The price of West Texas Intermediate (WTI) crude oil as of  September 2025  is approximately $  63  per barrel,
which is a  decrease  from  September  2024  per the U.S. Energy Information Administration.  Oil prices
decreased  in the last year due to many factors in the economy.

The preliminary September 2025  unemployment rate for the Houston MSA was 4.  8% compared to the national
average of 4.4%. The State’s preliminary  unemployment rate for September  2025  was 4.1%.

The Houston-  The Woodlands-Sugar Land, Texas area had a Consumer Price Index (CPI) that  was 1.1% higher
than other large urban areas as calculated for September  2025 by the Bureau of Labor Statistics.  The Houston
area’s  higher CPI-Urban is due in part to a higher  CPI for all items  , less food and energy, than other large urban
areas.

Houston has one of  the world’s busiest ports and an excellent airport system that are integral components of
the regional economy.  Port Houston  is one of the largest ports in the world.  Port 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 182  destinations and five  continents.  The airport system served
over  62.4  million  passengers in the 12 months ending October 2025  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 increased
3.8% in September of 2025  versus September of 2024  .  Inventory expanded from a 4  .4-months supply to  5.4
months over the last 12 months, the highest since September 2012.




  3

=== PDF PAGE 9 ===
Financial Policies and Long -Term Financial Planning
Key elements in maintaining the County’s financial strength and high bond rating 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  s and debt management has been included in Note 2
of the notes to the Authority’s  financial statements, Deposits and Investments, and Note 6  of the notes to the
Authority’s  financial statements, Long  -Term Liabilities.

Risk management and self-insurance with stop  -loss policies (as applicable) for medical, workers’
compensation, and property continue to be effective.  Various actuarial studies are periodically performed to aid
in liability calculation, as well as financial planning.

The  County provides retirement for all of its employees (excluding temporary employees) through the Texas
County and District Retirement System (TCDRS).  The County’s net pension liability  at September 30, 2025,
was  $138,292,915  which includes the Authority’  s net pension liability  of $5,632,757  The County currently
provides a postemployment healthcare plan; the Total OPEB liability was  $2,552,736,244  at  September 30,
2025  , which includes $  110,718,696  for the Authority  .  Additional information regarding the County’s
retirement plan and postemployment healthcare plan is located in Notes 7  and 8 of the notes to the Authority’s
financial statements.

Major Initiatives
The Authority’s focus remains on completing construction of the new Ship Channel Bridge, implementation of
the Barrier-Free Program (conversion to an all  -electronic tolling system), implementation of the Hardy
Downtown Connector, evaluating and developing opportunities for improvements along the Westpark Corridor,
leveraging strategic partnerships to improve operational efficiencies and a strategic plan that charts a roadmap
for the future of the agency.  The strategic plan focuses on a framework for resiliency and sustainability
programming, and long-range capital planning which advances projects in line with Commissioners Court’s
overall vision for transportation for the County.

  ACKNOWLEDGMENTS

The timely completion of this report could not have been achieved without the dedicated efforts of the Auditor’s
Office  and the professional services provided by our independent auditor, Deloitte & Touche LLP.  I wis  h to
express my gratitude to Commissioners Court, District Judges, and other County officials and departments for
their interest and support in planning and conducting the financial affairs of the  Authority in a responsible and
professional manner.

  REQUEST FOR INFORMATION

This financial report is designed to provide an overview of the  Authority’s  finances for individuals who are
interested in this information.  Questions concerning any of the data provided in this report should be addressed
to the County Auditor’s Office, 1001 Preston,  Suite 800, Houston, Texas 77002. Additional financial
information is provided on the County Auditor’s webpage, which  can be accessed from the County’s  website,
https://www.harriscountytx.gov.






  Michael Post, CPA, CIA
  County Auditor





  4

=== PDF PAGE 10 ===
  F
  I
  N
  A
  N
  C
  I
  A
  L

  S
  E
  C
  T
  I
  O
  N














=== PDF PAGE 11 ===
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”),  which comprise the S  tatement of N  et Position as of September
30,  2025, and the related S  tatement of R  evenue, Expenses and C  hanges in Net Position, and Statement
of Cash  Flows for the year then  ended, and the  related  notes to the financial statements  (collectively
referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Authority of Harris County, Texas,  as of September 30,  2025, and results of its
operations and its  cash flows for the year  then ended in accordance with accounting principles generally
accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS). 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 Authority  ,  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—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 September 30, 2025, 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.

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,



  5

=== PDF PAGE 12 ===
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 Authority’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 in Total  OPEB  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.

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.






April 7,  2026




  6

=== PDF PAGE 13 ===
7

=== PDF PAGE 14 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2025

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 (the “Authority”)  during the fiscal year  ended September 30, 2025.

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 notes following this section.

FINANCIAL HIGHLIGHTS

•  Total net position is  comprised of the following:

  (1)  Net investment  in capital assets  of  $9  91,  363,  849,  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 debt  proceeds.  This category of net
  position  decreased  $4,320,  667  in fiscal year 2025. The decrease was primarily due to a reduction in
  unspent bond proceeds that were used for ongoing capital projects.

  (2)  Net  position  of  $312,444,860  is  restricted by constraints imposed from outside the Authority such as
  debt obligations, laws, or regulations. Restricted net position decreased by approximately $53,7  49,211
  million in fiscal year 2025, primarily due to the use of restricted resources for capital project
  expenditures. The decrease was partially offset by increases in debt service and operating reserve
  balances.

  (3)  Unrestricted net position  of $898,015,784 represents the portion available to meet ongoing obligations
  of the Authority.  Unrestricted net position  increased $116,027,210  from the previous year  due to more
  toll revenues received in current fiscal year.
  Net Position Comparison


  $1,000,000,000

  $800,000,000

  $600,000,000

  $400,000,000

  $200,000,000

  $0
  Net investment in capital assets  Restricted net position  Unrestricted net position
  9/30/2025  9/30/2024


OVERVIEW OF THE FINANCIAL STATEMENTS

MD&A  is  intended to serve as an introduction to the Authority’s basic financial statements.  The Authority’s
basic financial statementsare comprised of 1) Financial S  tatements and 2) Notes to the Financial S tatements.

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


  8

=== PDF PAGE 15 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2025

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 regulations, 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.

FINANCIAL ANALYSIS

The total net position of the Authority as of September 30, 20  25 was $2,201,824,  493 and $2,143,867,161 as of
September 30,  2024.  Revenues exceeded expenses  and transfers out,  increasing  net position by $57,  957,332
from last year.

  Harris County Toll Road Authority Enterprise Fund
  Condensed Statement of Net Position
  September 30, 2025 and September 30, 2024
  (Amounts in thousands)

  9/30/2025  9/30/2024
  Current assets  1,950,698$  2,085,771$
  Capital assets, net  3,678,280  3,491,158
  Other non-current assets  204,419  193,432
  Total assets  5,833,397  5,770,361

  Deferred outflows of resources  96,166  113,251

  Current liabilities  453,831  406,832
  Non-current liabilities  3,173,555  3,286,345
  Total liabilities  3,627,386  3,693,177

  Deferred inflows of resources  100,353  46,568

  Net position
  Net investment in capital assets  991,363  995,685
  Restricted  312,445  366,194
  Unrestricted  898,016  781,988
  Total net position  2,201,824$  2,143,867$


The largest portion of the Authority’s current fiscal year’s  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 .











  9

=== PDF PAGE 16 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2025

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

  Harris Co unty To ll Ro ad Autho rity Enterprise Fund
  Statement o f Revenues, Expenses and Changes in Net Po sitio n
  (In Tho usands)
  Fo r the Fiscal Year Ended September 30, 2025 and September 30, 2024

  2025  2024
  Revenues:
  Operating revenues:
  T oll revenues  1,027,573$  874,475$
  Nonoperating Revenues:
  Investment income  95,248  86,026
  Lease income  9  8
  Miscellaneous income  2,231  1,777
  Gain on disposal of capital assets  -  337
  T otal revenues  1,125,061  962,623
  Expenses:
  Operating Expenses:
  Salaries  101,798  95,939
  Materials and supplies  33,826  23,358
  Incurred claims  65  -
  Services and fees  282,621  210,496
  U t ilit ie s  4,886  4,503
  T ransportation and travel  3,971  4,165
  Depreciation and amortization  115,505  126,783
  Nonoperating Expenses:
  Interest expense  107,677  84,303
  Debt service fees  132  4,926
  Amortization expense  851  1,098
  Loss on disposal of capital assets  17,158  -
  T otal expenses  668,490  555,571

  Income before transfers  456,571  407,052
  T ransfers out  (398,614)  (193,402)
  Change in net position  57,957  213,650
  Net position - beginning  2,143,867  1,930,217
  Net position - ending  2,201,824$  2,143,867$

Revenues

Total revenues for  fiscal year 2025 were $1,125,062,412 an increase  of $162,  438,564  compared to the previous
fiscal year. Revenues for  fiscal year  2024 w  ere $9  62,6  23,  848.  This increase wa  s largely due  to HCTRA’s cost
recovery efforts associated  with  the  invoicing services provided under the tolling service agreements. Toll
revenues totaled $1,027,573,290, which represents 91.3% of total revenues in fiscal year 2025.  This revenue
category increased $153,098,516  from fiscal year 2024 due to an  increase in toll rate fees  and addition of
interoperability authorities in the current year.

Investment income  for  fiscal year 2025  totaled $95,  248,292  and comprises  approximately  8.5% of total
revenues.  This revenue source increased  by $9,221,876 compared to $86,026,416 for fiscal year 2024,  due to
an increase  in interest earned from investments.  Other  revenues totaled $2,240,830 or 0.2% of total revenues.
Other revenues  include lease revenue of $9,360 and miscellaneous revenue of $2,231,470 for  reimbursements
and recovery of revenue losses.





  10

=== PDF PAGE 17 ===
Toll Road Authority Enterprise Fund of Harris County, Texas
Management’s Discussion and Analysis
For the Fiscal Year  End  ed September 30, 2025

  REVENUES BY SOURCE
  Fiscal Year Ended September 30, 2025

  Toll Revenues
  91.3%









  Other Revenues  Investment Income
  0.2%  8.5%



Expenses

For  the  fiscal year ended  September  30,  2025, expenses totaled $668,  491,406  an increase  of  $112,919,524
compared to the prior fiscal year  .  For the prior fiscal year  ended September 30, 2024  , expenses totaled
$555,571,882.

Services and fees of $282,622,  142  is the largest expense category and is 42.3% of total expenses. This  is an
increase of $72,126,093 from the prior year due to processing additional transactions tied to the onboarding of
the Toll Services Agreement and additional resources needed for agency growth.

Interest expense of $  107,  676,539  is  16.1% of total expenses. Interest expense reflects the interest incurred on
outstanding debt balances and activities during  the year.

Salaries  expense is $101,798,051 or 15.2% of total expenses. This represents an  increase  of 5,858,  769 over the
fiscal year 2024  .  This increase  is primarily due to merit and market salary adjustments, along with  transitioning
temporary positions to full -time staff  .

The remaining 2  6.4%  of expenses  represent  depreciation/amortization  (17.3%), and  various  other expenses
(9  .1%) which consist of outlays relative to materials and supplies, i  ncurred claims, utilities, transportation and
travel,  bond refunding  loss amortization,  loss on disposal of c  apital assets and  debt service fees.  All  these
expense categories are necessary for the operation of the toll road.

















  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, 2025

  EXPENSES
  For the Fiscal Year Ended September 30, 2025

  Depreciation/Amortization
  17.3%



  Interest expense
  16.1%

  Materials &
  supplies
  5.1%



  Utilities
  0.7%
  Various
  other
  9.1%  Transportation
  & travel
  0.6%




  Loss on Disposal
  of Fixed Assets
  Services and fees  2.7%
  42.3%  Salaries
  15.2%


Transfers

Transfers out in the amount of $ 398,613,674  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, Texas  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, 20  25  and  September 30,
202  4, amounted to $  3,678,280,387  and  $3,491,157,620  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  $187,122,767  from  prior  fiscal year ended September
30, 2024  .









  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, 2025

  Balance  Balance
  September 30, 2025  September 30, 2024
  Land  391,112,024$  392,291,184$
  Easement  3,336,250  1,989,062
  Construction in progress  1,528,703,930  1,241,228,962
  License agreement  237,500,000  237,500,000
  Intangible assets - software  43,537,966  43,537,966
  Land improvements  18,865,805  18,865,805
  Infrastructure  3,633,701,320  3,630,829,022
  Buildings  30,550,414  30,550,414
  Equipment  66,804,693  63,980,154
  Lease right-to-use assets  24,939,179  22,086,785
  Subscription right-to-use assets  19,474,341  23,223,714
  5,706,083,0685,998,525,922
  Less:  Accumulated depreciation/amortization  (2,320,245,535)  (2,214,925,448)
  Total capital assets, net  3,678,280,387$  3,491,157,620$
  For further information regarding capital assets, see Note 5 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
$3,297,321,567.  Refer to Note 6  to the financial statements for further detail on the Authority’s long  -term
liabilities.

  Long-term Liabilities
  Outstanding at  Outstanding at
  September 30, 2025  September 30, 2024
  Bonds payable  2,988,135,398$  3,113,867,962$
  Commercial paper payable  154,720,000  62,380,000
  Compensatory time payable  1,530,870  1,401,551
  Arbitrage rebate payable  7,926,754  4,118,449
  Lease payable  18,182,643  16,659,668
  Subscription payable  8,649,519  13,702,024
  Total OPEB liability  110,718,696  166,679,414
  Net pension liability  5,632,757  16,033,757
  Pollution remediation obligation  1,824,930  694,164
  Totals  3,297,321,567$  3,395,536,989$


















  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, 2025

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 & Poor’s Ratings Services,  Fitch IBCA, Inc., and Kroll
Bond Rating Agency  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  , and Aa1, and AA,
respectively, for the Hotel and Occupancy Senior Lien Revenue Bonds.

See  Note  7  and Note 8  to the financial statements for further information on  the  Authority’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 Port 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 20  20, 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 10.72  million by 2050, growing by nearly  3.6  million
  people over the next 30  years (2020-2050)  .  That is an average increase of  1.4  percent  growth each
  year. These  underlying 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 Road System.

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, and  the widening of portions of the Sam
Houston 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 financia l 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.harriscountytx.gov
















  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, 2025


  ASSETS
  Current assets
  Cash and cash equivalents  $  868,172,298
  Investments  857,929,118
  Receivables, net  43,475
  Accrued interest receivable  5,608,064
  Other receivables, net  212,390,278
  Due from other funds  3,893
  Prepaids and other assets  5,415,759
  Inventories  1,135,276
  Total current assets  1,950,698,161
  Non-current assets
  Restricted:
  Cash and cash equivalents  127,580,524
  Investments  76,838,669
  Capital Assets:
  Land and construction in progress  1,923,152,204
  Intangible asset, net of amortization  159,388,052
  Other capital assets, net of depreciation  1,595,740,131
  Total non-current assets  3,882,699,580
  Total assets  5,833,397,741
  DEFERRED OUTFLOWS OF RESOURCES
  Deferred charge on refundings  33,674,969
  Pension contributions after measurement date  7,539,922
  Differences between expected and actual pension experience  382,327
  Changes of pension assumptions  2,944,086
  Changes of OPEB assumptions and differences between expected and actual experience  51,624,820
  Total deferred outflows of resources  96,166,124
  LIABILITIES
  Current liabilities:
  Vouchers payable  94,005,556
  Accrued payroll  6,072,339
  Retainage payable  25,186,956
  Customer deposits  163,106
  Due to primary government  20,858,480
  Due to other governmental units  45,381,758
  Unearned revenue  122,153,644
  Accrued Interest  16,243,386
  Current portion of long-term liabilities  123,766,178
  Total current liabilities  453,831,403
  Non-current liabilities:
  Bonds payable  2,878,245,398
  Pollution remediation payable  1,824,930
  Commercial paper payable  154,720,000
  Compensatory time payable  214,212
  Arbitrage rebate payable  6,817,683
  Lease liability  13,787,733
  Subscription liability  4,806,980
  Total OPEB liability  107,505,696
  Net pension liability  5,632,757
  Total non-current liabilities  3,173,555,389
  Total liabilities  3,627,386,792
  DEFERRED INFLOWS OF RESOURCES
  Differences between expected and actual pension experience  844,098
  Changes of OPEB assumptions  95,897,489
  Net difference between projected and actual earnings for pension  3,610,993
  Total deferred inflows of resources  100,352,580
  NET POSITION
  Net investment in capital assets  991,363,849
  Restricted for capital projects  52,827,196
  Restricted for debt service  166,117,829
  Restricted for bond covenant and other purposes  93,499,835
  Unrestricted  898,015,784
  Total net position  $  2,201,824,493

  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, 2025


  OPERATING REVENUES
  Toll revenues  $  1,027,573,290
  Total operating revenues  1,027,573,290

  OPERATING EXPENSES
  Salaries  101,798,051
  Materials and supplies  33,825,911
  Incurred claims  65,427
  Services and fees  282,622,142
  Utilities  4,886,434
  Transportation and travel  3,970,984
  Depreciation and amortization  115,504,655
  Total operating expenses  542,673,604

  Operating income/(loss)  484,899,686

  NONOPERATING REVENUES (EXPENSES)
  Earnings on investments  95,248,292
  Lease income  9,360
  Interest expense  (107,676,539)
  Debt service fees  (132,000)
  (Loss) on disposal of capital assets  (17,157,892)
  Bond refunding loss amortization  (851,371)
  Miscellaneous income  2,231,470
  Total nonoperating revenues (expenses)  (28,328,680)

  Income (loss) before transfers  456,571,006

  CONTRIBUTIONS
  Transfers out  (398,613,674)

  Change in net position  57,957,332

  Net position, beginning  2,143,867,161
  Net position, ending  $  2,201,824,493















  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, 2025

 CASH FLOWS FROM OPERATING ACTIVITIES
  Receipts from customers  $  995,739,823
  Payments to employees for salaries and benefits  (97,250,205)
  Payments to suppliers and providers  (307,512,889)
  Receipts from other governmental units  187,132
  Receipts from other sources  2,231,470
 Net cash provided by operating activities  593,395,331

 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
  Transfers to other funds  (398,613,674)
 Net cash used for noncapital financing activities  (398,613,674)

 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
  Receipts from lease of capital assets  9,360
  Acquisition and construction of capital assets  (315,269,617)
  Proceeds from sale of capital assets  66,701
  Principal paid on capital debt  (96,685,000)
  Interest paid on capital debt  (145,327,763)
  Lease payable  (1,821,349)
  Subscription payable  (5,166,111)
  Commercial paper proceeds  249,520,000
  Commercial paper paid  (157,180,000)
  Bond issuance cost  (132,000)
 Net cash used by capital and related financing activities  (471,985,779)

 CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of investments  (1,788,775,903)
  Proceeds from sale and maturity of investments  1,661,692,053
  Interest on investments  95,300,543
 Net cash used for investing activities  (31,783,307)

 Net increase in cash and cash equivalents  (308,987,429)

 Cash and cash equivalents, beginning  1,304,740,251
 Cash and cash equivalents, ending  $  995,752,822

 Reconciliation of operating income to net cash
 Operating income  $  484,899,686

  Adjustments to reconcile operating income to net cash
  Depreciation and amortization expenses  115,504,655
  Other nonoperating revenues  2,231,470
  (Decrease) in accounts receivable  (6,817)
  (Decrease) in other receivables  (57,493,683)
  Increase in due from other funds  61,520
  (Decrease) in prepaid items  (1,690,307)
  Increase in inventories  135,189
  Increase in pension deferred outflows  3,009,657
  Increase in OPEB deferred outflows  13,224,135
  (Decrease) in vouchers payable  (2,683,078)
  Increase in accrued payroll  762,116
  Increase in retainage payable  9,370,380
  Increase in due to primary government  8,917,520
  (Decrease) in due to other governmental units  (943,634)
  Increase in customer deposits  1,695
  Increase in unearned revenue  25,603,818
  Increase in compensated absences  129,319
  (Decrease) in net pension liability/Asset  (10,401,000)
  Increase in pollution payable  1,130,766
  Increase in Arbitrage rebate payable  3,808,305
  (Decrease) in total OPEB liability  (55,960,718)
  Increase in pension deferred inflows  3,208,495
  Increase in OPEB deferred inflows  50,575,842
  Total adjustments  108,495,645
 Net cash provided by operating activities  $  593,395,331

 Noncash capital and related financing and investing activities:
 (Decrease) in fair value of investments  $  (1,124,467)
 Purchases of capital assets on account  (8,348,302)
 Right -to-use leases and subscriptions  3,457,928

  See notes to the financial statements
  17

=== PDF PAGE 25 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

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 Project”).  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 Jesse  H. 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 r  evenue
  bonds and senior lien revenue bonds.  When all of the debt service, as discussed in Note  6, has been paid or
  provided for in a trust fund, the Toll Roads will become a part of the State of Texas Highway System.

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

  GASB Statement No. 101, Compensated Absences  –  (“GASB 101”), the 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 was implemented by the Authority  and the Authority  recorded
  appropriate journal entries and updated applicable general ledger accounts for the current fiscal
  year. The Authority reviewed relevant regulations, policies, and applicable accounts’ transactions and
  balances for the prior year and determined that there is no material impact.

  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 was
  implemented by the Authority  and had no material impact on the Authority’s  financial statements.

  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 Statement of Net Position, Statement of Revenues,
  Expenses and Changes in Net Position, Statement of Cash Flows, and Notes to the Financial Statements.

  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  and from fees earned from handling operations
  for  other tolling authorities. 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/amortization  .  Interest
  expense and other 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



  18

=== PDF PAGE 26 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  at amortized cost or at fair value  based upon quoted market prices as of the Authority’s fiscal year  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, 2025, 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, 20  25 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 gen  erally stationary in nature and can typically be preserved
  for a significantly greater number of years than most  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 capital
  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 usef  ul 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
  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



  19

=== PDF PAGE 27 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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 a  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/amortization
  are decreased proportionately such that the net decrease equals the impairment loss.

  No asset impairment was recognized during the fiscal year  ended September 30, 2025  .

  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  Management and Budget -Risk Management division  is responsible for identifying,
  evaluating and managing the Authority’s risk in order to reduce the exposure from liabilit  y and accidental
  loss of property and human resources.  The Authority is treated as a County department by the County’s Risk
  Management  division  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 serv  ice.  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.



  20

=== PDF PAGE 28 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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,  581.67 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  -  The Authority  recognizes a liability for compensated absences for leave time that (1)
  has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over
  to subsequent years, and (3) is more likely than not to be used as time off or during or upon separation from
  employment.
  The liability for compensated absences is reported as incurred. The liability for compensated absences includes
  salary-related benefits, where applicable.  Leave earned in the current period is considered used before unused
  leave from prior years based on valuation method of Last-In First-Out, or LIFO.
  Vacation: Employees accrue from 3.08 to 7.7 hours 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.
  Compensatory: Exempt and non-  exempt employees may accrue up to 240 hours of compensatory
  time.  Exempt employees earn compensatory time at a rate of one times their worked hours in excess of 40
  hours a week, and upon termination, are  paid one-half of the compensatory time earned.  Non-exempt
  employees earn compensatory time at one and one-half times their worked hours in excess of 40 hours per
  week.  Compensatory time in excess of the 240-hour maximum  is paid during current pay period,  and upon
  termination, any  compensatory time balances are paid.
  Sick: 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.

  Other:  In addition to regular paid holidays, employees accrue 8 hours of floating holiday during the payroll
  year and may accumulate a maximum of 24 hours. Unused floating holiday benefits are not paid at termination.
  Eligible regular employees may receive up to 12 weeks of parental leave, which is not paid upon termination,
  and must be paid back to the Authority if employee does not maintain full-time employment for at least 180
  consecutive calendar days of continuous services immediately after the expiration of approved leave.

  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 net  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 made  after measurement date,
  difference between expected and actual pension  experience,  changes of pension assumptions, and  changes of


  21

=== PDF PAGE 29 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  OPEB assumptions and differences  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 made after measurement date are deferred and recognized in the following fiscal year.  Pension and
  OPEB  assumption  changes  and  differences  between expected and actual experienc  e  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).

  In addition to liabilities, the statement of net  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 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). Net differences between projected and actual
  earnings for pension, which are  amortized over a closed 5-year period. 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 Public 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, 2025, the balance per various financial institutions was $  803,233,559.  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 THE FINANCIAL STATEMENTS
  September 30, 2025

  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  ernment  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 bran  ch 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 cert  ificates 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 r  epurchase 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 Government Code, Section 2256.009, by irrevocable bank letters of credit issued by a
  bank 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 pledged to the investing entity, held in the  investing entity’s


  23

=== PDF PAGE 31 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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 yea  r 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 the 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 simil ar disclosure instrument that contains information required by Texas
  Government Code Section 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 o  ne
  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 depository 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 THE FINANCIAL STATEMENTS
  September 30, 2025

  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  , cash equivalents  and investments at September  30, 202  5.

  Totals
  Cash and Cash Equivalents  868,172,298$
  Investments  857,929,118
  Restricted Cash and Cash Equivalents  127,580,524
  Restricted Investments  76,838,669
  Total Cash, Cash Equivalents & Investments  1,930,520,609$

  The table below indicates the fair value and maturity value of the Authority’s investments as of September  30,
  2025  , summarized by investment type.  Also demonstrated are the percentages of the total portfolio, the modified
  duration in years, and the credit ratings for each summarized investment  type.
  Credit
  Modified  Rati ng
  Pe  rce  n tage  Maturi ty  Durati on  S  &P/
  Inve stme nt Type  Fai  r Val  u e  of Portfol i o  Amount  (Ye ars)  Moody's/Fi tch
  U S Agency Notes
  FFCB  41,101,370$  2.16%  41,000,000$  0.0066  AA+/Aa1
  F H LB  279,730,520  14.63%  280,000,000  0.1221  AA+/Aa1
  F H LM  C  101,898,120  5.33%  102,000,000  0.0224  AA+/Aa1
  Total US Agency Notes  422,730,010  423,000,000

  Commercial Paper
  BARCLAYS CAPIT AL INC  65,585,940  3.43%  66,000,000  0.0036  A 1/F 1
  SUM  ITOM  O M  IT/SINGAPORE  29,692,800  1.55%  30,000,000  0.0012  A1+/P-1
  Total Commercial Paper  95,278,740  96,000,000

  Local Gov ernments
  ANDOVER NY CENTRL SCH DIST  7,697,721  0.40%  7,600,000  0.0029  M  IG1
  BOCES NY 2ND SUPERVISORY DIST  6,867,912  0.36%  6,800,000  0.0021  SP  - 1
  BRADFORD NY CENTRL SCH DIST  9,088,353  0.48%  9,000,000  0.0035  M  IG1
  CALEDONIA-M  UM  FORD NY CENTRL SC  0.45%  8,500,0008,586,003  0.0033  M  IG1
  DALLAS TX ISD  2,013,900  0.11%  2,000,000  0.0004  AAA/Aaa
  DUBLIN OH CITY SCH DIST  4,077,602  0.21%  4,065,000  0.0004  AAA
  FORT BEND TX INDEP SCH DIST  3,064,055  0.16%  3,000,000  0.0014  AAA/AAA
  GREENE NY CENTRL SCH DIST  11,279,324  0.59%  11,200,000  0.0048  M  IG1
  HURST EULESS BEDFORD TX ISD  1,022,040  0.05%  1,000,000  0.0005  AAA
  N EW BRA U N F ELS T  X  U T  IL REV  442,838  0.02%  435,000  0.0002  A a1
  OREGON ST LOTTERY REV  996,380  0.05%  1,000,000  0.0003  AAA/Aa2
  SAN DIEGO CA CM  NTY CLG DIST  512,422  0.03%  500,000  0.0002  AAA/Aa1
  TEXAS A&M  UNIV REV  4,135,557  0.22%  4,195,000  0.0037  AAA/Aaa
  TEXAS ST TRANSPRTN COM  M  ISSION  20,459,000  1.07%  20,000,000  0.0103  AAA/Aaa
  UNIV OF TEXAS  1,018,377  0.05%  1,000,000  0.0004  AAA/Aaa
  Total Local Gov ernments  81,261,484  80,295,000

  US Treasury Bills
  US T reasury  Bills  65,830,370  3.44%  66,800,000  0.0133  AA+/Aa1
  T otal U S T r eas ur y Bills  65,830,370  66,800,000

  US Treasury Notes
  US T reasury  Not es  268,554,790  14.05%  273,100,000  0.1568  AA+/Aa1
  Total US Treasury Notes  268,554,790  273,100,000

  Money Mark et Funds
  LOGIC Pool  76,062,093  3.98%  76,062,093  N /A  AAAm
  LoneSt ar Pool  27,835,317  1.46%  27,835,317  N /A  AAAm
  T  exas CLA SS P ool  50,266,338  2.63%  50,266,338  N /A  AAAm
  TRA DDA Chase  233,080,487  12.19%  233,080,487  N /A  NA
  T R Debt  Service Reserve BKNY  112,440,373  5.88%  112,440,373  N /A  NA
  US Bank T rust  457,769,961  23.95%  457,769,961  N /A  NA
  St  at  e and Local G overnment  al Series  20,528,222  1.07%  20,528,222  N /A  NA
  Total Money Mark et Funds  977,982,791  977,982,791
  T ot al Invest ment s & Cash Equivalent s  1,911,638,185  100.00%  1,917,177,791$
  Demand and Time Deposits  18,882,424
  Total  Cash, Cash Equi val e nts & Inve stme nts  $ 1,930,520,609


  25

=== PDF PAGE 33 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025


  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, 2025, the County has the recurring fair value measurements for U.S. Agency Notes,
  Commercial Paper, Local Governments, U.S. Treasury Bills and Notes totaling $933,655,394  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 $977,982,791  have been valued at amortized cost or  fair value in
  accordance with GASB Nos. 72 and  79.  LOGIC and Lone Star Investment pools  are valued at amortized cost,
  which approximates fair value.  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.  TRA Demand Deposit Accounts at Chase, Trust at US Bank and State and Local
  Government Series 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
  major 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, 2025  , 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



  26

=== PDF PAGE 34 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  mutual funds and public funds investment pools must be rated AAA or its equivalent by at least one nationally
  recognized rating firm.
  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, 2025  , 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  Ave r a ge
  Investment  Maturity Per Policy  Maturity  Remaining Years
  Fund Type  Strategy  (Years)  Amount  To Maturity
  Toll Road Project Funds  Matching/Barbell/Laddered  6  733,695,000$  1.15
  Toll Road Renewal/Replacement  Matching/Barbell/Laddered  6  130,400,000  1.20
  Tol l  Roa d Bond Re s e r ve  Matching  Final maturity of the bonds  75,100,000  0.74
  Money Market Mutual Funds  N/A  N/A  977,982,791  N/A
  Tot al  1,917,177,791$

  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, 2025 are comprised of credit card receivables and toll violations for
  EZ tag collections.  The other receivables amount of $  212,390,278  is reported net of allowance for doubtful
  accounts. The allowance increased by $13  3,935,800 (a contra to revenues) to $882,591,166  in the current
  fiscal year.

  Proprietary funds report unearned revenue in connection with resources that have been received, but not
  yet earned.  At the end of the fiscal year  September 30, 2025  , the Authority reported $  122,153,644  in
  unearned EZ tag revenues.








  27

=== PDF PAGE 35 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

4.  PREPAIDS AND OTHER ASSETS

  Prepaids  and  other assets as of September 30, 2025,  are  $5,415,759  which includes the costs of hardware
  and software  as well as the unexpired portion of insurance premiums  paid upfront for future  fiscal years.

5.  CAPITAL ASSETS

  Capital asset activity for the fiscal year  ended September  30,  2025, was as follows:
  B  alanc e  T rans  fe  rs  /  B  alanc e
  Octobe r 1, 2024  A dditio ns  De  le  tio ns  O the  r  Se pte mbe r 30, 2025

  Capital assets not being depreciated:
  La nd  392,291,184$  168,028$  -$  (1,347,188)$  391,112,024$
  Easement  1,989,062  -  -  1,347,188  3,336,250
  C  o  ns t r uc t io  n in p  r o  gr e s s  1,241,228,962  307,662,208  (17,314,942)  (2,872,298)  1,528,703,930
  Total capital assets not depreciated  1,635,509,208  307,830,236  (17,314,942)  (2,872,298)  1,923,152,204
  Depreciable capital assets:
  License agreement  237,500,000  -  -  -  237,500,000
  Intangible assets -  software  43,537,966  -  -  -  43,537,966
  L a  nd  imp  r  o  ve  me  nt  s  18,865,805  -  -  -  18,865,805
  Infrastructure  3,630,829,022  -  -  2,872,298  3,633,701,320
  B uild  ings  30,550,414  -  -  -  30,550,414
  E q  uip  me  nt  63,980,154  6,432,828  (3,551,499)  (56,790)  66,804,693
  Total depreciable capital assets:  4,025,263,361  6,432,828  (3,551,499)  2,815,508  4,030,960,198
  Less accumulated depreciation for:
  License agreement/Intangible asset  (137,891,341)  (9,832,251)  -  -  (147,723,592)
  L a  nd  imp  r  o  ve  me  nt  s  (11,902,690)  (908,729)  -  -  (12,811,419)
  Infrastructure  (1,994,717,933)  (89,974,393)  -  -  (2,084,692,326)
  B uild  ings  (6,840,295)  (672,920)  -  -  (7,513,215)
  E q  uip  me  nt  (47,759,381)  (4,880,673)  3,418,123  56,790  (49,165,141)
  (106,268,966)(2,199,111,640)  3,418,123  56,790  (2,301,905,693)
  Lease right- to- use assets:
  B uild  ings  22,014,709  3,344,322  (491,928)  -  24,867,103
  E q  uip  me  nt  72,076  -  -  -  72,076
  Total lease right- to- use assets  22,086,785  3,344,322  (491,928)  -  24,939,179
  Less accumulated amortization for:
  B uild  ings  (6,294,495)  (4,117,671)  2,846,676  (7,565,490)
  E q  uip  me  nt  (42,968)  (16,633)  -  -  (59,601)
  Total accumulated amortization  (6,337,463)  (4,134,304)  2,846,676  -  (7,625,091)
  Lease right- to- use assets, net  15,749,322  (789,982)  2,354,748  -  17,314,088

  S  ub  s c r ip  t io  n r ight -  t o  -  us e  a s s e t s :
  Subscriptions  23,223,714  113,606  (3,862,979)  -  19,474,341
  Less accumulated amortization for:
  S  ub  s c r ip  t io  n r ight -  t o  -  us e  a s s e t s  (9,476,345)  (5,101,385)  3,862,979  -  (10,714,751)
  S  ub  s c r ip  t io  n r ight -  t o  -  us e  a s s e t s ,  ne t  13,747,369  (4,987,779)  -  -  8,759,590

  Depreciable/Amortized capital assets, net  1,855,648,412  (105,613,899)  2,221,372  2,872,298  1,755,128,183
  Total capital assets, net  3,491,157,620$  202,216,337$  (15,093,570)$  -$  3,678,280,387$







  28

=== PDF PAGE 36 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

6.  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
  debts, 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.


  Changes in the Authority’s Long-Term Liabilities  for the fiscal year ended September 30, 2025 were as
  follows:


  Outstanding  Paid/  Outstanding  Due Within One
  October 1, 2024  Issued/ Increased  Decreased  September 30, 2025  Year
  Senior Lien Revenue Bonds  1,090,780,000$  -$  (42,015,000)$  1,048,765,000$  42,655,000$
  First Lien Revenue Bonds  1,655,700,000  -  (42,600,000)  1,613,100,000  55,145,000
  Tax Bonds  109,470,000  -  (12,070,000)  97,400,000  12,090,000
  Total Bond Principal  2,855,950,000  -  (96,685,000)  2,759,265,000  109,890,000
  Unamortized Premium, Senior Revenue Bonds  103,256,717  -  (11,769,083)  91,487,634  -
  Unamortized Premium, First Revenue Bonds  151,720,324  -  (16,703,165)  135,017,159  -
  Unamortized Premium, Tax Bonds  2,940,921  -  (575,316)  2,365,605  -
  Total Bonds Payable  3,113,867,962  -  (125,732,564)  2,988,135,398  109,890,000
  Commercial Paper Payable  62,380,000  249,520,000  (157,180,000)  154,720,000  -
  Compensatory Absences Payable*  1,401,551  129,319  -  1,530,870  1,316,658
  Arbitrage Rebate Payable  4,118,449  3,808,305  -  7,926,754  1,109,071
  Lease Payable  16,659,668  3,344,322  (1,821,347)  18,182,643  4,394,910
  Subscription Payable  13,702,024  113,606  (5,166,111)  8,649,519  3,842,539
  Total O P EB Liability  166,679,414  -  (55,960,718)  110,718,696  3,213,000
  N et P ens ion Liability  16,033,757  -  (10,401,000)  5,632,757  -
  P ollution Remediation O bligation  694,164  1,130,766  -  1,824,930  -
  Totals  - Toll Road F und Liabilities  3,395,536,989$  258,046,318$  (356,261,740)$  3,297,321,567$  123,766,178$

  * The change in compensated absences above is a net change for the year























  29

=== PDF PAGE 37 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

A.  Outstanding Bonded Debt

  Interest  Outstanding
  Original  Rate  BalanceDate Series
  Issue Amount  Range (%)  Issued  Matures  September 30, 2025
  Senior Lien Revenue Bonds
  Refunding Series 2015B  161,575,000$  5.00  2015  2036  108,830,000$
  Refunding Series 2016A  530,105,000  2.75-5.00  2016  2047  406,695,000
  Refunding Series 2018A  559,900,000  4.00-5.00  2018  2048  453,490,000
  Refunding Series 2019A  90,255,000  3.00-5.00  2019  2049  79,750,000
  Total Principal Senior Lien Revenue Bonds  1,341,835,000  1,048,765,000
  Unamortized Premiums and Discounts  91,487,634
  Total Senior Lien Revenue Bonds  1,140,252,634

  First Lien Revenue Bonds
  Refunding Series 2021  424,925,000  3.00-5.00  2021  2050  390,065,000
  Refunding Series 2022A  194,030,000  5.00  2022  2033  169,250,000
  Refunding Series 2023A  119,495,000  5.00  2023  2035  110,995,000
  Refunding Series 2024A  950,000,000  4.00-5.25  2024  2054  942,790,000
  Total Principal First Lien Revenue Bonds  1,688,450,000  1,613,100,000
  Unamortized Premiums and Discounts  135,017,159
  Total First Lien Revenue Bonds  1,748,117,159

  Unlimited Tax and Subordinate
  Lien Bonds (Tax Bonds)
  Refunding Series 2007C  321,745,000  5.25  2007  2033  97,400,000
  Total Principal Tax Bonds  321,745,000  97,400,000
  Unamortized Premiums and Discounts  2,365,605
  Total Tax Bonds  99,765,605

  Total Bonds Principal  2,759,265,000
  Total Unamortized Premiums and Discounts  228,870,398
  TOTAL  3,352,030,000$  2,988,135,398$

  B.  Covenants and Conditions
  The Senior Lien Revenue Bonds and First Lien Revenue Bonds are payable from 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 5.10  as of September 30, 2025.








  30

=== PDF PAGE 38 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  C.  Debt Service Requirements
  Total interest expense was  $107,676,539  for the fiscal year  ended  September 30, 2025  .  The following
  are the debt service requirements for bonds payable:

  Fisc al
  Year  Principal  Interest  Total
  2026  109,890,000$  128,621,925$  238,511,925$
  2027  114,750,000  123,147,200  237,897,200
  2028  119,880,000  117,379,413  237,259,413
  2029  125,305,000  111,355,075  236,660,075
  2030  131,030,000  105,059,425  236,089,425
  2031-2035  602,120,000  424,386,088  1,026,506,088
  2036-2040  438,665,000  303,262,725  741,927,725
  2041-2045  453,865,000  207,658,675  661,523,675
  2046-2050  449,565,000  103,077,487  552,642,487
  2051-2054  214,195,000  25,345,462  239,540,462
  $  1,649,293,4752,759,265,000$  4,408,558,475$


  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  , 2025, the unissued 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, 2025  there was no outstanding principal balance of these defeased bonds  in trust.

  F.  Debt Issuances  and Retirements
  On  May 29, 2025, the County utilized toll road revenue to defease $78,590,000 in Series K Toll Road
  First Lien Commercial Paper notes.

  On June 18, 2025, the County utilized toll road revenue to defease $78,590,000 in Series K  -2 Toll Road
  First Lien Commercial Paper notes.

  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. 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, 202  5, Toll Road had outstanding
  $154,720,000 of commercial paper combined  in Series K and Series K-2 Notes.







  31

=== PDF PAGE 39 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  For Commercial Paper Series K, Toll Road entered into a Letter of Credit Reimbursement Agreement
  (the “Series K Letter of Credit”) with Truist Bank  , 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 May 19, 2030. For this reimbursement agreement the Authority will be assessed
  a fee of 0.23% per annum on the stated amount of 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  installments  due
  quarterly on the last business day of the month in which such payment is due, commencing with the first
  such installment due on the term loan commencement date; provided however, that any remaining portion
  of the term loan shall be due and payable no later than the amortization end date; and provided further,
  that no term loan shall mature after the maximum maturity date. Any term loans made by the Bank under
  the available commitment shall be evidenced by the Bank note.

  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 stated 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 $  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 equal
  semi-annual installments.

  DEBT SERVICE TO MATURITY-COMMERCIAL PAPER
  As of September 30, 202  5, the Authority had  $154,720,000  outstanding principal balance on the commercial
  paper lines of credit.

  Fiscal year  Principal  Interest  Total
  2026  -$  -$  -$
  2027  14,835,000  6,204,430  21,039,430
  2028  19,780,000  5,640,391  25,420,391
  2029  19,780,000  2,632,182  22,412,182
  2030  4,945,000  1,396,822  6,341,822
  2031-2033  95,380,000  22,362,967  117,742,967
  $  38,236,792154,720,000$  192,956,792$

  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  rebate payments made during fiscal year 20  25.  As of
  September 30, 2025,  the arbitrage rebate liability amounted to the total of $7,926,754  for the Toll Road.

  I.  Subsequent Long-Term Debt  Related Activities
  On December 4, 2025, the County issued $227,440,000 in Toll Road First Lien Revenue Refunding
  Bonds, Series 2025A, to defease the County’s outstanding Series K & K-2 Toll Road System First Lien
  Revenue Commercial Paper notes, to refund Series 2015B Toll Road Senior Lien Revenue Refunding
  bonds, and to pay cost of such issuance. The issuance had a premium of $17,987,787. The interest accrues

  32

=== PDF PAGE 40 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  semiannually, and the bonds mature in 2055. The refunding resulted in savings of $34,073,  301 due to a
  decrease in cash flow requirements and had an economic gain of $9,296,500.

  J.  Lease Liability
  The Authority  leases buildings and equipment, the terms of which expire in various years through 2035  .
  Variable payments of certain leases are based upon the Consumer Price Index (CPI).  The leases were
  measured based upon the CPI  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.

  The following is a schedule of payments under the leases as of September 30, 2025:

  Fiscal Year Ending  To  tal to  Be
  September 30,  Principal  Interest  Paid
  2026  $  399, 0604, 394, 910$  4, 793, 970$
  2027  293, 3654, 483, 018  4, 776, 383
  2028  192, 0463, 742, 733  3, 934, 779
  2029  109, 1742, 569, 201  2, 678, 375
  2030  69, 032950, 624  1, 019, 656
  2031-2035  107, 9212, 042, 157  2, 150, 078
  $  1, 170, 59818, 182, 643$  19, 353, 241$


  K.  Subscription  Liability
  The  Authority  has multi-year information technology subscriptions, the terms of which expire in various
  years through 2029  .  Variable payments of certain subscriptions are based upon the CPI.  The subscriptions
  were measured based upon the CPI  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 of payments under the subscriptions  as of September 30, 2025  :

  Fiscal Year Ending  To  tal to  Be
  September 30,  Principal  Interest  Paid
  2026  $  180, 3363, 842, 539$  4, 022, 875$
  2027  94, 0062, 259, 918  2, 353, 924
  2028  26, 4722, 388, 809  2, 415, 281
  2029  461158, 253  158, 714
  $  301, 2758, 649, 519$  8, 950, 794$













  33

=== PDF PAGE 41 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

7.  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 3.96232%.

  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.

  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:

  12/31/23  12/31/24
  Inactive employees or beneficiaries currently receiving benefits  11,202  11,577
  Inactive employees entitled but not yet receiving benefits  11,836  13,574
  Active employees  20,346  19,805
  To ta l  43,384  44,956


  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’s annual contribution rate is
  actuarially determined, and the County can at  this rate elect to contribute or a higher rate. The County
  contributed  at a rate of 15.  1% of covered payroll for the months of the calendar year 2023  ,  15.4% for the
  calendar year 202  4 and 15.1% for the calendar year  2025.





  34

=== PDF PAGE 42 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  The contribution rate payable by the employee members for 2024  and 2025  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, 2025, the net pension
  (asset)/liability was measured as of December 31, 2024, 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, 2024 actuarial valuation was determined using the following
  actuarial assumptions, applied to all periods included in the measurement:

  I  n f  la  t  io n  2.  5%
  Salary Increases (average)  4.  7%
  I nve  s tme  nt r a  te  of  r e  tur n  7.  5%
  ( I nve  s tme  nt r a  te  of  r e  tur n is  ne  t of
  a  dminis tr a  tive  e  xpe  ns e  s )


  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  COLA  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%
  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. 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 68. The actuarial assumptions
  used in the December 31, 202 4  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 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 2025  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 compli ance
  with relevant standards of practice.






  35

=== PDF PAGE 43 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  The following target asset allocation was adopted by the TCDRS board in March 2025. The geometric real
  rate of return is net of inflation, assumed at 2.35%.

  Target  Geometric Real
  Asset Class  Allocation  Rate of Return
  U. S.  Equities  13.00%  5.35%
  Global Equities  4.00%  5.15%
  International Equities - Developed Markets  6.00%  4.75%
  International Equities - Emerging Markets  0.00%  4.75%
  Investment-Grade Bonds  3.00%  2.55%
  Strategic Credit  9.00%  3.70%
  Direct Lending  16.00%  6.85%
  Distressed Debt  4.00%  6.80%
  REIT  Equities  2.00%  3.95%
  Master Limited Partnerships  2.00%  4.95%
  Commodities  2.00%  1.00%
  Private Real Estate Partnerships  6.00%  5.75%
  Private Equity  25.00%  8.15%
  Hedge Funds  6.00%  3.60%
  Cash Equivalents  2.00%  1.10%
  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”) is  amortized
  on  a level-dollar basis as of and after December 31, 2023  , and on a level  percent of pay  basis prior
  to December 31, 2023  , over a  20-year closed  periodusing a layered approach  .
  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.
















  36

=== PDF PAGE 44 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

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

  H a rri s  C o unty
  T otal Pension  Fiduciary  Net Pension
  Liability  Net Position  Liability/(As s et)
  (a )  (b)  (a) - (b)
  Balances as of December 31, 2023  8,808,866$  8,386,586$  422,280$
  Changes for the year:
  Service cost  218,178  -  218,178
  Interest on total pension liability  668,503  -  668,503
  Effect of economic/demographic gains or losses  6,485  -  6,485
  Refund of contributions  (17,637)  (17,637)  -
  Benefit payments  (452,874)  (452,874)  -
  Administrative expenses  -  (4,948)  4,948
  Member contributions  -  103,767  (103,767)
  Net investment income  -  851,922  (851,922)
  Employer contributions  -  227,728  (227,728)
  O t he  r  -  (5,181)  5,181
  Balances as of December 31, 2024  9,231,521$  9,089,363$  142,158$
  T he net pension liability  allocated  to the Authority at December 31, 2024  , was $5,632,757  and the Authority

  contributions for the same period was $  9,023,338.

  Sensitivity Analysis.  The following presents the net pension (asset)/  liability of the County, calculated using
  the discount rate of 7.60  %, 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  0%) or 1-percentage-  point higher
  (8.60%) than the current rate (amounts in thousands):

  Harris County:
  C urre nt
  1% Decrease  Discount Rate  1% Increase
  6.60%  7.60%  8.60%
  T otal pension liability  10,446,113$  9,231,521$  8,215,350$
  Fiduciary net position  9,089,363  9,089,363  9,089,363
  Net pension (asset)/liability  1,356,750$  142,158$  (874,013)$


  Toll Road Authority:
  C urre nt
  1% Decrease  Discount Rate  1% Increase
  6.60%  7.60%  8.60%
  T otal pension liability  413,908$  365,782$  325,518$
  Fiduciary net position  360,150  360,150  360,150
  Net pension (asset)/liability  53,758$  5,632$  (34,632)$

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






  37

=== PDF PAGE 45 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  Pension Expense and Deferred Inflows/Outflows of Resources Related to Pension.  For the  fiscal year
  ending September 30, 2025, the County recognized pension expense  of $128,052,581, the Authority’s share
  was  $5,073,856.  The County reported deferred outflows of resources and deferred inflows of resources
  related to pension from the following sources (amounts in thousands):

  H a  r  r  i  s  C o unty:  De fe rre d Inflows  De fe rre d Outflows
  of Resources  of Resources
  Differences between expected and actual experience  21,303$  9,649$
  C  ha  nge  s  o f  a  s  s  u mp t i o ns  -  74,302
  Net difference between projected and actual earnings  91,133  -
  Contributions made subsequent to the measurement date  -  180,994
  To ta l  112,436$  264,945$

  T oll Road Authority's Allocation:  De fe rre d Inflows  De fe rre d Outflows
  of Resources  of Resources
  Differences between expected and actual experience  844$  382$
  C  ha  nge  s  o f  a  s  s  u mp t i o ns  -  2,944
  Net difference between projected and actual earnings  3,611  -
  Contributions made subsequent to the measurement date  -  7,540
  T otal  4,455$  10,866$

  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):

  C ount y  T  o  ll R  o  a  d
  Fis  c  a  l Y  e  a  r  E nding Se  pte  mbe  r  30:  Fis  c  a  l Y  e  a  r  E nding Se  pte  mbe  r  30:
  2026  ( 5,991)$  2026  ( 237)$
  2027  115,692  2027  4,584
  2028  ( 95,462)  2028  ( 3,783)
  2029  ( 42,724)  2029  ( 1,693)
  Tota l  ( 28,485)$  Tota l  ( 1,129)$

  Payable to the Pension Plan.At  September 30, 2025, the County reported a payable of $26,771,665  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, 2025  was $3,511,144.











  38

=== PDF PAGE 46 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  The deferred inflows and outflows of resources reported for CS at September 30, 202  5 were (amounts in
  thousands):

  Deferred Inflows  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  526$  238$
  C  ha  nge  s  o f  a  s  s  u mp t i o ns  -  1,835
  Net difference between projected and actual earnings  2,251  -
  Contributions made subsequent to the measurement date  -  4,343
  T otal  2,777$  6,416$
  For the measurement period ended December 31, 202  4, CS recognized pension expense  of $2,492,622.

  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.

8.  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 175.002 entitles County employees to purchase continued
  health coverage at retirement.  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
  Effective January 1, 2025, the County provided employees with three medical plan options: Base PPO, Plus
  PPO and the KelseyCare ACO plan. The County provided retirees with three options: Base PPO, Plus PPO
  and Medicare Advantage PPO. Prescription drug coverage for all retiree  Medicare members not enrolled
  in the Humana Medicare Advantage PPO, will be provided coverage through Aetna’s SilverScript (a fully
  insured Employer Group Waiver Plan), available to retirees effective February 1, 2026. 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.




  39

=== PDF PAGE 47 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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 ret irements 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.

  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. For example, an employee paying 20% of their own coverage would pay 60% of their
  dependent coverage (20% more than an employee retiring with 100% contribution).

  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 11, 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 with a minimum of 20 years of creditable service or be at least age 65 and have at least 15 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.

  Effective March 1, 2019, s urviving spouses of retirees and employees who are “vested” with eight (8) years
  of service or who choose to  take a vested survivor benefit under the TCDRS retirement plan with a
  minimum of four (4) years, and who were covered as a dependent at the time of the retiree’s or employee’s
  death, are eligible to continue coverage under the Harris County health and rel  ated benefit plans until they
  are age 65 or Medicare eligible. The cost of this coverage would be the total internal monthly rate for
  Employee coverage or Retiree coverage. The total internal monthly rate would be the current County


  40

=== PDF PAGE 48 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  portion and the Employee or Retiree contribution as approved and amended by Commissioners Court.

  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. Grandfathered
  employees are those who were retired or eligible to 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.

  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/TCD  RS service to receive the approved County
  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 c  ontribution. 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.

  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 were  within 10 years of their retiree health
  eligibility date and had 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.













  41

=== PDF PAGE 49 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  Plan Membership
  At September 30, 2024, the most recent valuation date, membership consisted of the following:

  I na ct ive p la n memb er s  or  b enef icia r ies
  cur r ent ly r eceiving benefit  pa yment s  6,524
  Act ive p la n memb er s  18,362
  T ot a l  24,886


  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,  2025,  and  was determined by an
  actuarial valuation as of September 30, 202  4.  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:

  Actuarial cost method  Entry Age, Level Percent of Pay
  R e  c  ognition of  de  f e  r r e  d inf low s  a  nd outf low s  of  C los e  d pe  r iod e  qua  l to the  a  ve  r a  ge  of  the  e  xpe  c  te  d r e  ma  ining
  r e  s our c  e  s  f or  e  xpe  r ie  nc  e  a  nd a  s s umptions  s e  r vic  e  live  s  of  a  ll e  mploye  e  s  pr ovide  d w ith O P  EB
  Salary increases  3. 00 pe  r c  e  nt
  I nf la  tion r a  te  2. 50 pe  r c  e  nt
  Healthcare cost trend rate  7. 00 pe  r c  e  nt f or  2025 de  c  r e  a  s ing to 5. 40 pe  r c  e  nt f or  2029, 5. 25
  pe  r c  e  nt f or  2030- 2034, 4. 60 pe  r c  e  nt f or  2035- 2049, 4. 50 pe  r c  e  nt
  f or  2050- 2064, 4. 25 pe  r c  e  nt f or  2065- 2074, a  nd 4. 00 pe  r c  e  nt f or
  2075 and later years; Medicare ages: 4.50 percent for all years.
  Preretirement Mortality
  Males  135%  of  P  ub- 2010 Ge  ne  r a  l Employe  e  s  H e  a  dc  ount- We  ighte  d.
  Females  120%  of  P  ub- 2010 Ge  ne  r a  l Employe  e  s  H e  a  dc  ount- We  ighte  d.
  P  ostre tire me nt Morta lity
  Males  135%  of  P  ub- 2010 Ge  ne  r a  l R e  tir e  e  s  H e  a  dc  ount- We  ighte  d.
  Females  120%  of  P  ub- 2010 Ge  ne  r a  l R e  tir e  e  s  H e  a  dc  ount- We  ighte  d.
  Mor ta  lity I mpr ove  me  nt:  100%  of  the  MP  - 2021 U ltima  te  P  r oje  c  tion Sc  a  le  .
  Medical -  Dental,
  M  e  d ic  a  l C  la  im s  C  o s  t  S  e  lf  -  Medical -  Medical -  V  is  io n ,  &
  ( A nnua  l pe  r  R e  tir e  e  or  Spous e  )  A geFunde  dMA P  DE GW PL  if  e
  50  $  10,560  $  10,560  $  10,560  $  660
  55  13,212  13,212  13,212  660
  60  16,332  16,332  16,332  660
  64  19,560  19,560  19,560  660
  65  8,664  1,656  5,688  660
  70  8,340  1,596  5,472  660
  75  8,940  1,716  5,868  660

  Actuarial assumptions used in the September 30, 202  4 valuation were based on a review of plan experience
  during the period March 1, 2022 to September 30, 2024.

  42

=== PDF PAGE 50 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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  Dis count Rate
  September 30, 2024  September 30, 2024  3. 81%  3. 75%
  September 30, 2025  September 30, 2025  4. 90%  5. 00%

  Schedule of Changes in TotalOPEB Liability (  September 30, 2024  to September  30, 202  5)

  Tota l OP  EB
  L  ia  b ilit  y
  B a  la  nc  e  s  a  s  of  Se  pte  mbe  r  30, 2024  3,910,434,867$
  C ha  nge  s  f or  the  ye  a  r :
  Service cost  164,408,495
  Interest  147,624,021
  C ha  nge  s  of  a  s s umptions *  ( 1,565,348,609)
  B e  ne  f it pa  yme  nts  (1)  ( 90,598,022)
  B a  la  nc  e  s  a  s  of  Se  pte  mbe  r  30, 2025  2,566,520,752$


  (1)  Includes $90,598,022 of pay-as  -you-go contributions made from sources outside of trust.

  *  Change in as s umptions  or other inputs :


  Impact of adopting Humana Medicare Advantage PPO  (93,320,699)$
  Impact of implementing Aetna’s  SilverScript (Employer Group Waiver Plan)  (898,507,483)
  Change in dis count rate from 3.75% to 5.00% as  of September 30, 2025  (573,520,427)
  To tal  (1,565,348,609)$

  There was a decrease in the total OPEB liability mainly due to the changes in assumptions during the fiscal
  year.  The changes in assumptions include the impact of adopting the  Humana Medicare Advantage PPO,
  implementing Aetna’s Silver  Script (Employer Group Waiver Plan) and a change in discount rate from
  3.75% to 5.00%.

  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 (4.00  percent) or 1-percentage-point higher (  6.00  percent) than the
  current discount rate:
  H a  r r is  C ounty:  1% Decrease  D is c  ount R a  te  1% Increase

  4.  00%  5.  00%  6.  00%
  T  o t  a  l O  P  E  B  lia  b ilit  y  3,011,885,558$  2,566,520,752$  2,209,835,332$


  Toll R oa  d:  1% Decrease  D is c  ount R a  te  1% Increase
  4.  00%  5.  00%  6.  00%
  T  o t  a  l O  P  E  B  lia  b ilit  y  129,964,268$  110,718,696$  95,265,909$


  43

=== PDF PAGE 51 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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:

  H a r r is  C ounty:
  1% Decrease  (2)  Tr e nd R a te  1% Increase  (3)
  T  o t  a  l O  P  E  B  lia  b ilit  y  2,152,749,029$  2,566,520,752$  3,102,580,640$


  Toll R oa d:  1% Decrease  (2)  Tr e nd R a te  1% Increase  (3)
  T  o t  a  l O  P  E  B  lia  b ilit  y  92,651,936$  110,718,696$  134,042,945$


  (2) Tr e nd r a te  f or  e a c h f utur e  ye a r  r e duc e d by 1. 00%  .

  (3) Tr e nd r a te  f or  e a c h f utur e  ye a r  inc r e a s e d by 1. 00%  .

  OPEB Expense and Deferred Inflows/  Outflows of Resources Related to OPEB
  For the fiscal year ended September 30, 2025,  the County recognized OPEB expense of $  210,058,303 and
  the Authority’s share was $  11,283,669.  At September 30, 202  5, the County’s deferred outflows of resources
  and deferred inflows of resources related to OPEB from the following sources are:

  H a  r  r  i  s  C o  unty:  De fe r  r  e d  Infl  o w  s  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  261,661,531$
  C ha  nge  s  i  n a  s  s  ump  ti  o  ns  o  r  o  the  r  i  np  uts  2,214,353,176  968,753,202
  To ta l  2,214,353,176$  1,230,414,733$



  Toll Road's Allocation:  De fe r  r  e d  Infl  o w  s  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  10,978,599$
  C ha  nge  s  i  n a  s  s  ump  ti  o  ns  o  r  o  the  r  i  np  uts  95,897,489  40,646,221
  To ta l  95,897,489$  51,624,820$






















  44

=== PDF PAGE 52 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

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


  H a rri s  C o unty  Toll Road
  Fiscal Year Ending September 30:  Fiscal Year Ending September 30:
  2026  (101,974,213)$  2026  (4,588,367)$
  2027  (109,166,983)  2027  (4,912,008)
  2028  (188,287,494)  2028  (8,472,064)
  2029  (219,636,123)  2029  (9,882,607)
  2030  (103,780,589)  2030  (4,669,645)
  Thereafter  (261,093,041)  Thereafter  (11,747,978)
  T otal  (983,938,443)$  T otal  (44,272,669)$



  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 considered departments or component units of the County.  The Total  OPEB liability
  for CS and 911 at September 30, 202  5 is $13,784,508.

  The deferred inflows and outflows reported for CS and 911 at September 30, 202  5, were:

  De fe r r e d  Infl  o w  s  Deferred Outflows
  of Resources  of Resources
  Differences between expected and actual experience  -$  1,349,926$
  C ha  nge  s  i  n a  s  s  ump ti  o ns  o r  o the  r  i  np uts  9,619,619  4,997,852
  To ta l  9,619,619$  6,347,778$


  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


  45

=== PDF PAGE 53 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  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.

9.  COMMITMENTS AND CONTINGENCIES

  Construction Commitments
  The Authority is committed under various contracts in connection with the construction of Authority facilities,
  buildings, and roads of $296,565,540.

  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 liability of $1,824,930
  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.

10.  TRANSFERS AND ADVANCES

  Transfers out amounted  to $398.  6  million for the  fiscal year  ended  September  30, 2025  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, Texas
  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.

11.  RECENT ACCOUNTING PRONOUNCEMENTS

  GASB Statement No. 103, Financial Reporting Model Improvements –  (“GASB 103”), The objective of this
  Statement is to improve key components of the financial reporting model to enhance its effectiveness in
  providing information that is essential for decision making and assessing a government’s accountability. This
  Statement also addresses certain application issues. GASB 103 will be implemented by the Authority  as of the
  year ended September 30, 2026  and the impact has not yet been determined.

  GASB Statement No. 104, Disclosure of Certain Capital Assets –  (“GASB 104”), State and local governments
  are required to provide detailed information about capital assets in notes to financial statements. Statement No.
  34, Basic Financial Statements—  and Management’s Discussion and Analysis—  for State and Local
  Governments, requires certain information regarding capital assets to be presented by major class. The
  objective of this Statement is to provide users of government financial statements with essential information

  46

=== PDF PAGE 54 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  NOTES TO THE FINANCIAL STATEMENTS
  September 30, 2025

  about certain types of capital assets. GASB 104 will be implemented by the Authority  as of the year end  ed
  September 30, 2026 and the impact has not yet been determined.

  GASB Statement No. 105, Subsequent Events –  (“GASB 105”), This statement (1) clarifies the subsequent
  events time frame and the subsequent events that constitute recognized and nonrecognized events and (2)
  specifies the information items that are required to be disclosed about subsequent events. GASB 105 defines
  subsequent events as transactions or other events that occur after the date of the financial reporting statements
  but before the date the financial statements are available to be issued.  GASB 105 will be implemented by the
  Authority in the fiscal year ending September 30, 2027 and the impact has not yet been determined.















































  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  Year Ended  Year Ended
  February 28  February 29  February 28  February 28  September 30  September 30  September 30  September 30
  2019  2020  2021  2022  2022  2023  2024  2025
TOTAL OPEB LIABILITY
Service cost  79,163$  81,736$  251,727$  209,843$  118,068$  105,268$  100,941$  164,409$
Interest cost  70,460  74,038  69,221  91,781  53,688  128,192  136,996  147,624
Difference between expected and actual experience  -  -  85,687  -  165,734  -  189,832  -
Effect of assumption changes or inputs  -  733,663  397,977  215,789  (1,461,485)  (117,205)  739,705  (1,565,349)
Benefit payments  (55,161)  (58,457)  (62,087)  (67,710)  (40,931)  (73,614)  (79,520)  (90,598)
Net change in total OPEB liability  94,462  830,980  742,525  449,703  (1,164,926)  42,641  1,087,954  (1,343,914)
Total OPEB liability, beginning  1,827,096  1,921,558  2,752,538  3,495,063  3,944,766  2,779,840  2,822,481  3,910,435
Total OPEB liability, ending (a)  1,921,558$  2,752,538$  3,495,063$  3,944,766$  2,779,840$  2,822,481$  3,910,435$  2,566,521$

Covered payroll  1,042,892$  1,112,112$  1,164,474$  1,195,886$  1,214,294$  1,337,993$  1,384,395$  1,494,283$

Total OPEB liability as a % of covered payroll  184.25%  247.51%  300.14%  329.86%  228.93%  210.95%  282.47%  171.76%

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 TEN MEASUREMENT YEARS
  (Amounts in thousands)


  Year Ended December 31
  2015  2016  2017  2018  2019  2020  2021  2022  2023  2024
TOTAL PENSION LIABILITY
Service cost  131,567$  149,334$  146,841$  148,122$  151,462$  163,444$  199,137$  202,068$  198,189$  218,178$
Interest on total pension liability  411,525  437,989  468,982  496,916  524,085  553,564  583,779  612,984  638,180  668,503
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) or loss  (7,458)  (27,493)  (6,851)  (8,053)  11,006  19,026  (8,769)  (48,873)  2,150  6,485
Benefit payments/refunds of contributions  (220,100)  (238,220)  (263,941)  (288,552)  (321,909)  (347,776)  (382,112)  (413,279)  (448,920)  (470,511)
Net change in total pension liability  337,800  321,610  355,645  348,433  364,644  828,541$  396,642$  352,900$  $  422,655389,599$
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  8,419,267  8,808,866
Total pension liability, ending (a)  5,450,852$  5,772,462$  6,128,107$  6,476,540$  6,841,184$  7,669,725$  8,066,367$  8,419,267$  8,808,866$  9,231,521$

FIDUCIARY NET POSITION
Employer contributions  132,346$  136,391$  142,896$  149,663$  167,499$  182,824$  189,304$  198,225$  200,510$  227,728$
Member contributions  66,878  68,371  71,869  72,343  77,914  85,012  88,129  88,572  93,188  103,767
Investment income net of investment expenses  (30,646)  349,499  733,526  (107,132)  908,411  656,508  1,509,284  (477,235)  845,347  851,922
Benefit payments/refunds of contributions  (220,100)  (238,220)  (263,941)  (288,552)  (321,909)  (347,776)  (382,113)  (413,279)  (448,920)  (470,511)
Administrative expenses  (3,419)  (3,799)  (3,797)  (4,443)  (4,844)  (5,068)  (4,504)  (4,515)  (4,379)  (4,948)
Other  363  (7,961)  (605)  (1,750)(1,386)  (1,963)  (1,049)  (10,981)  (5,059)  (5,181)
Net change in fiduciary net position  (54,578)  304,281  679,948  (179,507)  825,321  569,537  1,399,051  (619,213)  680,687  702,777
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  7,705,899  8,386,586
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$  8,386,586$  9,089,363$

Net pension liability/(asset), ending = (a) - (b)  724,371$  741,700$  417,397$  945,337$  484,660$  743,664$  (258,745)$  713,368$  422,280$  142,158$

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%  95.21%  98.46%

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$  1,328,252$  1,481,875$

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%  31.79%  9.59%

Toll Road's Portion:
Allocated share  3.655%  3.551%  3.761%  3.687%  3.547%  3.457%  3.220%  3.401%  3.797%  3.962%
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$  7,613,260$  9,023,338$
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$  16,033,757$  5,632,757$









  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


  Actuarially  Actual  Contribution  P e  ns  i o na  b l e  Actual Contribution
  Fis cal  Determined  Employer  Deficiency  Covered  as a % of Covered
  Year  Contribution (1)  Contribution (1)  (Excess)  Payroll (2)  Payroll
  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%
  2024  199,370,632  224,403,716  (25,033,084)  1,466,189,581  15.3%
  2025  227,728,501  234,309,649  (6,581,148)  1,546,134,136  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:

  A  c  t  u  a  r  ia  lly  Actual  C ont r ibution  P  e  ns  iona  ble  A c  tua  l C ontr ibution
  F  is  c  a  l  Determined  E mploye  r  Deficiency  C ove  r e  d  as a % of Covered
  Year  C ont r ibution  C ont r ibution  (Excess)  P  a  yr oll  P  a  yr oll
  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%
  2024  7,613,260  8,852,058  ( 1,238,798)  57,844,319  15.  3%
  2025  9,023,338  9,699,161  ( 675,823)  64,121,943  15.  1%
  (1)  T  CD RS calculat  ed act  uarially  det  ermined cont  ribut  ions  on a calendar y  ear bas is .  G A SB St  at  ement  N o. 68
  indicat  es  t  he emp  loy  er s hould rep  ort  emp  loy  er cont  ribut  ion amount  s  on a fis cal y  ear bas is .
  (2)  P ay  roll is  calculat  ed bas ed on cont  ribut  ions  as  rep  ort  ed t  o T  CD RS for t  he fis cal y  ear.
  (3)  A s  of Sep  t  ember 30, 2022 t  here w as  no new  act  uarial valuat  ion for T  CD RS.  T  he act  ual emp  loy  er cont  ribut  ion for t  he 7 mont  h
  p  eriod ended Sep  t  ember 30, 2022 w as  $121,477,256 for t  he Count  y  and $4,164,508 for t  he A ut  horit  y  .
















  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

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  14.1 years (based on contribution rate calculated in 12/31/2024  valuation)

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 administrative and 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 100% of the MP -2021
  Ultimate scale after 2010.

Changes in Assumptions and  2015: New inflation, mortality and other assumptions were reflected.
Methods Reflected in the
Schedule of Employer  2017: New mortality 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
Reflected in the Schedule of  increased to 7%.
Employer Contributions*
  2016: No changes in plan provisions were reflected in the Schedule.

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

  2018-2024: 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 28  September 30  September 30  September 30  September 30
Component/Segment (a)  2022  2022 (c)  2023  2024  2025
Hardy Toll Road-North  17,136,59325,733,847  28,958,568  29,859,649  30,937,677
Hardy Toll Road-South  18,400,67328,151,054  32,040,280  34,653,541  37,113,126
Sam Houston Tollway-South  51,704,21387,856,146  87,616,841  87,844,416  88,365,965
Sam Houston Tollway-Central  39,612,18966,203,205  67,473,544  67,818,472  68,849,830
Sam Houston Tollway-North  52,201,00586,962,566  88,597,047  88,314,470  88,179,152
Sam Houston Ship Channel Bridge  13,638,38721,346,309  23,474,721  21,663,073  23,986,027
Sam Houston Tollway-NorthEast  22,352,58736,018,557  38,707,342  37,493,924  39,760,593
Sam Houston Tollway-East  20,062,13830,745,492  35,149,200  35,195,383  36,877,024
Sam Houston Tollway-South/East  26,541,36343,184,077  45,099,587  45,965,706  47,165,095
Sam Houston Tollway-South/West  31,859,24552,861,714  54,703,087  55,386,596  55,937,313
Westpark Tollway  36,744,79759,716,443  63,888,381  65,648,065  67,718,260
Fort Bend Parkway Extension (Spur 90A)  3,347,6005,492,986  5,974,632  6,445,939  6,958,203
Katy Managed Lanes (b)  18,671,13028,610,665  34,074,955  36,711,995  37,765,038
Tomball Tollway  16,326,52026,589,442  32,327,669  35,285,932  37,842,325
  Total  368,598,440599,472,503  638,085,854  648,287,161  667,455,628

  (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  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


  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  $  0.50 - 1.50  $  0.65 - 1.80  $  0.70 - 1.88  $  1.00 - 3.00
Sam Houston Ship Channel Bridge  1.50  1.80  1.88  3.00
Westpark Tollway  0.40 - 1.50  0.55 - 1.80  0.60 - 1.88  0.90 - 3.00
Fort Bend Parkway Extension (Spur 90A)  1.50  1.80  1.88  3.00
Tomball Tollway  0.50 - 1.50  0.65 - 1.80  0.70 - 1.88  1.00 - 3.00

Three to Six Axle Vehicles
Sam Houston Tollway and Hardy Toll Road Plazas  1.00 - 8.75  1.30 - 10.50  1.40 - 10.95  2.00 - 17.50
Sam Houston Ship Channel Bridge  4.00 - 10.00  4.80 - 12.00  5.00 - 12.50  8.00 - 20.00
Westpark Tollway  1.00 - 8.75  1.30 - 10.50  1.40 - 10.95  2.00 - 17.50
Fort Bend Parkway Extension (Spur 90A)  3.50 - 8.75  4.20 - 10.50  4.38 - 10.95  7.00 - 17.50
Tomball Tollway  1.00 - 8.75  1.30 - 10.50  1.40 - 10.95  2.00 - 17.50


  (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 28  September 30  September 30  September 30  September 30
  2022  2022 (b)  2023  2024  2025
Operating Revenues
  Toll revenues  $  808,931,881  $  532,151,298  $  896,351,094  $  874,474,774  $  1,027,573,290
  Total Operating Revenues  808,931,881  532,151,298  896,351,094  874,474,774  1,027,573,290

Operating Expenses
  Salaries  74,372,273  40,501,868  80,707,014  95,939,282  101,798,051
  Materials and supplies  26,143,034  13,233,260  29,375,689  23,358,441  33,825,911
  Incurred claims  65,427
  Services and fees  164,090,917  106,470,753  213,416,742  210,496,049  282,622,142
  Utilities  3,267,504  2,000,241  4,255,000  4,503,268  4,886,434
  Transportation and travel  3,639,196  2,430,384  4,356,186  4,164,769  3,970,984
  Depreciation and Amortization  109,661,003  52,549,680  113,765,482  126,782,879  115,504,655
  Total Operating Expenses  381,173,927  217,186,186  445,876,113  465,244,688  542,673,604

Income from Operations  427,757,954  314,965,112  450,474,981  409,230,086  484,899,686

Nonoperating Revenues
  Investment income  3,289,821  1,562,418  36,900,982  86,026,416  95,248,292
  Lease revenues  8,640  4,946  8,479  7,840  9,360
  Miscellaneous Income  2,571,734  1,653,068  1,944,159  1,777,047  2,231,470
  Gain on disposal of capital assets  56,208  181,937  454,570  359,401  196,755
  Total Nonoperating Revenues  5,926,403  3,402,369  39,308,190  88,170,704  97,685,877

Nonoperating Expenses
  Interest expense  83,303,263  50,466,318  73,091,761  84,302,579  107,676,539
  Debt service fees  34,537  1,540,276  1,435,466  4,926,267  132,000
  Bond refunding loss amortization  3,487,377  1,676,709  1,315,068  1,098,348  851,371
  Loss on disposal of capital assets  -  -  3,846,586  21,630  17,354,647
  Total Nonoperating Expenses  86,825,177  53,683,303  79,688,881  90,348,824  126,014,557

Net Income Before
  Transfers  346,859,180  264,684,178  410,094,290  407,051,966  456,571,006

Transfers Out (a)  (253,954,915)  (123,907,635)  (369,300,000)  (193,402,174)  (398,613,674)

Change in Net Position  $  92,904,265  $  140,776,543  $  40,794,290  $  213,649,792  $  57,957,332


(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.


















  55

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


  Coverage  Revenues  Coverage
  Debt Service  Ratio On  Available For  Ratio On
  Senior & 1st  Senior & 1st  Unlimited  Debt  Unlimited
  FY/Period  Project  Other  Lien Revenue  Lien Revenue  O & M  Subordinate  Service  Subordinate
  Ended  Revenues  Earnings (a)  Bonds  Bonds  Expenses (b)  Lien Tax Bonds  Tax Bonds  Lien Tax Bonds
  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)  3,402,369532,151,298  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
  2024  874,474,774  88,149,074  158,900,900  6.058  280,107,669  523,615,279  28,011,944  18.693
  2025  1,027,573,290  97,489,122  220,305,646  5.107  350,134,681  554,622,085  17,817,175  31.129

(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 28  September 30  September 30  September 30  September 30
Component/Segment (a)  2022  2022 (d)  2023  2024  2025
Hardy Toll Road-North  $  27,909,61440,482,057$  43,683,294$  45,102,764$  49,332,971$
Hardy Toll Road-South (b)  27,838,73441,476,186  44,558,745  47,954,734  52,499,567
Sam Houston Tollway-South  74,704,542120,574,460  116,105,595  115,785,581  118,878,758
Sam Houston Tollway-Central  63,790,529101,735,211  99,742,384  100,535,927  104,830,298
Sam Houston Tollway-North  81,745,873129,143,357  126,530,326  127,928,561  132,055,831
Sam Houston Ship Channel Bridge  26,133,51939,015,609  41,310,317  39,833,297  45,066,099
Sam Houston Tollway-East  32,118,43446,928,255  51,962,394  51,821,170  55,127,313
Sam Houston Tollway-South/East  42,165,94165,054,773  66,099,847  66,856,876  70,001,411
Sam Houston Tollway-South/West  46,400,92472,607,308  73,729,011  74,578,655  77,519,253
Sam Houston Tollway-North/East  32,190,12949,348,796  51,673,029  48,147,558  54,123,434
Westpark Tollway  47,010,04473,466,948  76,297,447  76,422,868  80,927,222
Fort Bend Parkway Extension (Spur 90A)  5,078,9118,149,768  8,474,676  8,894,264  9,660,383
Katy Managed Lanes  12,399,47018,648,110  20,442,233  20,967,661  22,283,257
Tomball Tollway  23,569,37137,611,849  44,165,933  48,243,545  53,027,370
Administration (c)  (32,512,204)(67,179,469)  (10,553,090)  (44,699,806)  5,392,110
IOP-CTRMA  965,5221,407,012  1,786,141  1,967,756  10,383,779
IOP-CCRMA  --  -  90,000  302,028
IOP-Fort Bend County  2,943,1244,751,940  5,391,543  5,739,327  6,823,408
IOP-KTA  30,05944,123  54,360  124,299  421,587
IOP-MCTRA  812,7741,228,090  1,598,189  1,839,494  2,154,895
IOP-METRO  266,379357,013  531,967  503,472  654,500
IOP-NTTA  3,507,7704,880,037  6,605,113  7,794,194  10,338,085
IOP-TTA  10,306,60615,601,249  20,454,626  21,662,660  62,550,182
IOP-OTA  84,28888,696  250,664  340,757  631,240
IOP - BCTRA  632,924794,878  1,229,074  1,319,516  1,467,797
IOP - BTG  2,058,0212,715,625  4,227,276  4,719,644  1,052,358
IOP - MDX  -  -  -  -  2,717
IOP - LCF  -  -  -  -  490
IOP - THEA  -  -  -  -  2,438
IOP - FTE  -  -  -  -  41,145
IOP - E-470  -  -  -  -  21,364
  Total  $  532,151,298808,931,881$  $  874,474,774896,351,094$  1,027,573,290$


  (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 fee Revenues are attributable to the Toll Interoperability Program, pursuant to various agreements.
  (b)  Includes toll revenues collected for the Airport Connector.
  (c)  This  line  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  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
  2026  12,090,000$  5,113,500$  17,203,500$  97,800,000$  123,508,425$  221,308,425$  109,890,000$  128,621,925$  238,511,925$
  2027  12,115,000  4,478,775  16,593,775  102,635,000  118,668,425  221,303,425  114,750,000  123,147,200  237,897,200
  2028  12,135,000  3,842,738  15,977,738  107,745,000  113,536,675  221,281,675  119,880,000  117,379,413  237,259,413
  2029  12,160,000  3,205,650  15,365,650  113,145,000  108,149,425  221,294,425  125,305,000  111,355,075  236,660,075
  2030  12,185,000  2,567,250  14,752,250  118,845,000  102,492,175  221,337,175  131,030,000  105,059,425  236,089,425
  2031  12,210,000  1,927,537  14,137,537  124,765,000  96,549,925  221,314,925  136,975,000  98,477,462  235,452,462
  2032  12,240,000  1,286,513  13,526,513  131,045,000  90,311,675  221,356,675  143,285,000  91,598,188  234,883,188
  2033  12,265,000  643,912  12,908,912  137,565,000  83,759,425  221,324,425  149,830,000  84,403,337  234,233,337
  2034  -  -  -  77,001,12584,400,000  161,401,125  84,400,000  77,001,125  161,401,125
  2035  -  -  -  87,630,000  72,905,975  160,535,975  87,630,000  72,905,975  160,535,975
  2036  -  -  -  94,600,000  68,654,425  163,254,425  94,600,000  68,654,425  163,254,425
  2037  -  -  -  87,200,000  64,225,825  151,425,825  87,200,000  64,225,825  151,425,825
  2038  -  -  -  90,905,000  60,581,875  151,486,875  90,905,000  60,581,875  151,486,875
  2039  -  -  -  81,265,000  56,777,825  138,042,825  81,265,000  56,777,825  138,042,825
  2040  -  -  -  84,695,000  53,022,775  137,717,775  84,695,000  53,022,775  137,717,775
  2041  -  -  -  80,800,000  49,099,625  129,899,625  80,800,000  49,099,625  129,899,625
  2042  -  -  -  87,545,000  45,547,425  133,092,425  87,545,000  133,092,42545,547,425
  2043  -  -  -  91,255,000  41,740,425  132,995,425  91,255,000  41,740,425  132,995,425
  2044  -  -  -  95,005,000  37,767,175  132,772,175  95,005,000  37,767,175  132,772,175
  2045  -  -  -  99,260,000  33,504,025  132,764,025  99,260,000  33,504,025  132,764,025
  2046  -  -  -  103,355,000  29,191,989  132,546,989  103,355,000  29,191,989  132,546,989
  2047  -  -  -  107,695,000  24,741,175  132,436,175  107,695,000  24,741,175  132,436,175
  2048  -  -  -  96,330,000  20,097,625  116,427,625  96,330,000  20,097,625  116,427,625
  2049  -  -  -  70,980,000  16,047,487  87,027,487  70,980,000  16,047,487  87,027,487
  2050  -  -  -  71,205,000  12,999,213  84,204,213  71,205,000  12,999,213  84,204,213
  2051  -  --  49,975,000  9,910,300  59,885,300  49,975,000  9,910,300  59,885,300
  2052  -  -  -  52,285,000  7,600,987  59,885,987  52,285,000  7,600,987  59,885,987
  2053  -  -  -  54,700,000  5,182,962  59,882,962  54,700,000  5,182,962  59,882,962
  2054  -  -  -  57,235,000  2,651,212  59,886,212  57,235,000  2,651,212  59,886,212
  Total  97,400,000$  23,065,875$  120,465,875$  2,661,865,000$  1,626,227,600$  4,288,092,600$  2,759,265,000$  1,649,293,475$  4,408,558,475$







  58

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



  The Series 2007C Tax Bonds is referred to as the "Toll Road Tax Bonds".


  Outstanding
  Principal Amount
  Issue  Date Issued  at September 30, 2025
 Harris County, Texas, Toll Road Unlimited
  Tax and Subordinate Lien Revenue
  Refunding Bonds, Series 2007C  August 2007  97,400,000$

 TOTAL  97,400,000$













































  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 and Series 2024A are referred to as the “First Lien Revenue Bonds”.

  Outstanding
  Principal Amount
  Issue  at September 30, 2025
  Harris County, Texas, Toll Road Senior Lien Revenue
  Refunding Bonds Series 2015B  108,830,000$
  Refunding Bonds Series 2016A  406,695,000
  Refunding Bonds Series 2018A  453,490,000
  Refunding Bonds Series 2019A  79,750,000

  Harris County, Texas, Toll Road First Lien Revenue
  Refunding Bonds Series 2021  390,065,000
  Refunding Bonds Series 2022A  169,250,000
  Refunding Bonds Series 2023A  110,995,000
  Refunding Bonds Series 2024A  942,790,000


  TOTAL  2,661,865,000$



































  60

=== PDF PAGE 70 ===
  TOLL ROAD AUTHORITY ENTERPRISE FUND OF HARRIS COUNTY, TEXAS
  OPERATING FUNDS BUDGET FOR THE COUNTY'S FISCAL YEAR 2025-2026
  Schedule 9



On  September  18,  2025  the  Commissioners  Court  adopted  the  budget  for  the  Flood  Control  District  and  on  September
24,  2025  for  Harris  County  and  Toll  Road  Authority  for  the  Fiscal  Year  2025-2026.  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 2025-2026 budget for the County's Current Operating Fund:

  Cash Balance as of October 1, 2025  383,644,980$
  Estimated Revenues:
  Ad Valorem and Miscellaneous Taxes  2,226,049,368
  Charges for Services  293,663,872
  Fines and Forfeitures  12,915,200
  Intergovernmental Revenues  88,598,061
  Interest  38,962,150
  Other  70,643,580
  Total Cash and Estimated Revenues  3,114,477,211$

  Appropriations:
  Current Operating Expenses  3,111,265,182$
  Capital Outlay:
  Roads  2,479,440
  Parks  732,589
  Total Appropriations  3,114,477,211$

































  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,  2025  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  $  315,030,085
  Permanent Improvements  474,433,405
  Flood Control  95,619,646
  Total  $  885,083,136
















































  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  $  1,453,050,000
Unlimited Tax Debt  829,130,000
Flood Control  248,065,000
Toll Road Tax Bonds  97,400,000
  Total  $  2,627,645,000
Less:  Toll Road Tax Bonds  (97,400,000)
Total (Approximately 0.29% of 2025 Assessed Value)  $  2,530,245,000


 (a)  Excluding  Flood  Control  District  debt  of  $958,695,000  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 COUNTYWIDE 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 Countywide Tax Debt
  Year  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total  Principal  Interest  Total
  2026  70,845$  69,831$  140,676$  85,000$  39,028$  124,028$  12,090$  5,113$  17,203$  72,975$  53,100$  126,075$  240,910$  167,072$  407,982$
  2027  98,235  64,978  163,213  58,455  34,717  93,172  12,115  4,479  16,594  57,250  49,834  107,084  226,055  154,008  380,063
  2028  62,405  74,617  137,022  59,795  31,786  91,581  12,135  3,843  15,978  63,060  46,884  109,944  197,395  157,130  354,525
  2029  76,150  57,721  133,871  50,675  28,789  79,464  12,160  3,206  15,366  64,065  43,684  107,749  203,050  133,400  336,450
  2030  58,100  54,415  112,515  49,285  26,248  75,533  2,56712,185  14,752  53,770  40,433  94,203  173,340  123,663  297,003
  2031  61,570  51,498  113,068  50,465  23,775  74,240  12,210  1,928  14,138  37,425  37,693  75,118  161,670  114,894  276,564
  2032  63,425  48,412  111,837  32,800  21,273  54,073  12,240  1,286  13,526  42,750  35,696  78,446  151,215  106,667  257,882
  2033  39,400  45,418  84,818  29,885  19,771  49,656  12,265  644  12,909  44,890  33,561  78,451  126,440  99,394  225,834
  2034  38,995  43,457  82,452  31,375  18,284  49,659  -  -  -  47,045  31,416  78,461  117,415  93,157  210,572
  2035  40,915  41,530  82,445  17,120  16,724  33,844  -  -  49,200-  29,220  78,420  107,235  87,474  194,709
  2036  41,260  39,506  80,766  17,965  15,896  33,861  -  -  -  51,460  26,984  78,444  110,685  82,386  193,071
  2037  43,285  37,486  80,771  18,770  15,088  33,858  -  -  -  53,700  24,699  78,399  115,755  77,273  193,028
  2038  45,375  35,399  80,774  19,580  14,281  33,861  -  -  -  56,050  22,300  78,350  121,005  71,980  192,985
  2039  47,560  33,222  80,782  20,415  13,439  33,854  -  -  -  58,515  19,855  78,370  126,490  66,516  193,006
  2040  49,825  30,954  80,779  21,245  12,604  33,849  -  -  -  60,960  78,32217,362  132,030  60,920  192,950
  2041  43,085  28,593  71,678  22,120  11,732  33,852  -  -  -  48,175  15,133  63,308  113,380  55,458  168,838
  2042  45,100  26,597  71,697  23,030  10,822  33,852  -  -  -  50,000  13,296  63,296  118,130  50,715  168,845
  2043  47,160  24,546  71,706  23,945  9,906  33,851  -  -  -  51,870  11,321  63,191  122,975  45,773  168,748
  2044  49,295  22,383  71,678  24,925  8,923  33,848  -  -  -  53,970  9,171  63,141  128,190  40,477  168,667
  2045  47,335  20,217  67,552  26,005  7,854  33,859  -  -  -  56,190  6,915  63,105  34,986129,530  164,516
  2046  49,390  18,162  67,552  27,145  6,698  33,843  -  -  -  58,505  4,567  63,072  135,040  29,427  164,467
  2047  48,475  16,046  64,521  28,365  5,482  33,847  -  -  -  44,850  2,444  47,294  121,690  23,972  145,662
  2048  49,075  13,899  62,974  27,080  4,238  31,318  -  -  -  30,085  901  30,986  106,240  19,038  125,278
  2049  36,165  11,800  47,965  8,585  3,262  11,847  -  -  -  -  -  -  44,750  15,062  59,812
  2050  34,430  10,166  44,596  9,025  2,823  11,848  -  -  -  -  -  -  43,455  12,989 56,444
  2051  36,165  8,425  44,590  9,485  2,362  11,847  -  -  -  -  -  -  45,650  10,787  56,437
  2052  38,000  6,596  44,596  9,970  1,877  11,847  -  -  -  -  -  -  47,970  8,473  56,443
  2053  39,920  4,674  44,594  10,480  1,368  11,848  -  -  -  -  -  -  50,400  6,042  56,442
  2054  41,935  2,655  44,590  11,015  832  11,847  -  -  -  -  -  -  52,950  3,487  56,437
  2055  10,175  534  10,709  5,125  269  5,394  -  -  -  -  -  -  15,300  803  16,103
  Total  1,453,050$  $  2,396,787943,737$  829,130$  410,151$  1,239,281$  97,400$  23,066$  120,466$  1,206,760$  576,469$  1,783,229$  3,586,340$  1,953,423$  5,539,763$


  (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
  COUNTYWIDE AUTHORIZED BUT UNISSUED BONDS
  Schedule 13
  (Amounts in thousands)

As  of  September  30,  2025,  the  following  Countywide  ad  valorem  tax  bonds  authorized  by  the  voters  at  the  elections  held
in  September  1983,  November  1999,  November  2007,  November  2015,  August  2018,  November  2022  and  November
2023 remain unissued.

This  table  reflects  the  County’s  use  of  voted  authority  when  it  issues  general  obligation  bonds  and  commercial  paper
notes  pursuant  to  its  Series  B  (parks  and  libraries),  Series  C  and  C-2  (roads  and  bridges),  and  Series  D,  D-2,  and  D-3
(parks,  libraries,  and  public  safety)  programs.  It  also  reflects  the  Flood  Control  District's  use  of  voted  authority  when  it
issues limited tax bonds and commercial paper notes pursuant to its Series H and H-2 programs.

This  table  also  shows  Harris  County  Hospital  District  Bond  that  was  authorized  by  the  voters  at  the  election  held  in
November 2023 but remains unissued. Harris County has no legal responsibility for repayment of this bond.


  County Ad Valorem Tax Bonds
  Limited Tax:
  Civil Justice Center  33,000$
  Parks  206,113
  Forensic Lab  5,180
  Public Safety  97,613
  Total Limited Tax Bonds  341,906$
  Unlimited Tax:
  Road Bonds  1,079,180
  Total Unlimited Tax Bonds  1,079,180
  Combination Unlimited Tax and Revenue:
  Toll Roads  15,148
  Total Toll Road Unlimited Tax Bonds  15,148
  Harris County Flood Control District Limited Tax Bonds:
  Flood Bonds  1,491,775
  Total Flood Control Limited Tax Bonds  1,491,775
  Total Harris County Ad Valorem Tax Bonds  2,928,009

  Harris County Hospital District Bonds
  Harris County Hospital District Bond  1,691,495
  Total Harris County Hospital District Bonds  1,691,495

  Total Authorized but Unissued Bonds  $  4,619,504
















  65

=== 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



  2017  2018  2019  2020  2021  2022  9/30/22*  2023  2024  2025
Administration of Justice  9,824  10,275  10,181  10,909  11,194  11,115  10,937  10,883  11,517  11,888
Parks  892  913  924  899  613  587  554  614  640  646
County Administration  3,406  3,460  3,481  3,054  3,222  3,331  3,416  3,587  3,870  4,054
Health and Human Services  1,450  1,488  1,487  1,622  1,582  1,653  1,667  1,793  2,098  2,182
Flood Control  293  290  316  325  331  347  350  329  351  382
Tax Administration  353  368  365  418  382  377  371  392  388  419
Roads and Bridges  563  568  542  659  489  364  381  371  402  449


Notes:
(1)  As  of  September  30,  2025,  it  is  estimated  that  approximately  5,817  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, and then subsequent to that a
  full 12 months ended 9/30.
Source: Harris County HR and Payroll system




















  66