MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
August 13, 2025

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MUD 8”) met in regular session, open to the public, on Wednesday, August 13, 2025, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

John Tryon President
John L. Patton Vice President
Margie Barlow Secretary
Randolph C. Moravec Treasurer/Investment Officer
Michael White Assistant Secretary

All members of the Board were present, thus constituting a quorum. Also attending were Mark Miller of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Messrs. Justin Abshire and Conner Murphy of Quiddity Engineering (“Engineer” or “Quiddity”); Mr. Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Mr. Trevor Konopka of The GMS Group, LLC (“Financial Advisor” or “GMS”); Mr. Jim McClellan, General Manager of Walden Community Improvement Association (“WCIA”); Mr. Ray Geiselhart, Director for Montgomery County Municipal Utility District No. 9 (“MUD 9”); Mr. Elliot M. Barner, attorney, and Ms. Barbara Hankins, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Mr. and Ms. Mark and Stephanie Johnson, and Mr. Don Smith, members of the public.

The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board was present, called the meeting to order at 9:02 a.m. and declared it open for such business as may come before it.

PUBLIC COMMENT

The President opened the meeting to public comment. There being no comments, the President directed the Board to proceed with the agenda.

FINANCIAL ADVISOR’S REPORT
Mr. Konopka presented to and reviewed with the Board the Financial Advisor’s tax rate study for the proposed 2025 tax rate (the “Tax Rate Study”), a copy of which is attached hereto. Mr. Konopka noted that according to Montgomery Central Appraisal District, the taxable value of property within the District increased from 2024 to 2025 by 7.2%. Mr. Konopka explained that GMS recommends the Board publish a proposed total ad valorem tax rate of $0.288 per $100 assessed valuation, which is the maximum amount the District can adopt without triggering a roll-back election. Mr. Konopka further recommended that next month, the Board consider setting a total tax rate of $0.288 per $100 assessed valuation, comprised of $0.1688 per $l00 assessed valuation for debt service purposes and $0.1192 per $l00 assessed valuation for operation and maintenance purposes. Mr. Konopka added that, based on a total tax rate of $0.288, the average homeowner’s tax bill would increase by approximately $60.00.

Mr. Konopka then stated if the District were to adopt a total ad valorem tax rate of $0.288 per $100 assessed valuation, GMS would also recommend that the Board transfer $195,000.00 from the General Operating Fund (“GOF”) to the District’s debt service fund. Extensive discussion then ensued regarding the Tax Rate Study, including the proposed tax rate to be published in the Conroe Courier, as is required by Texas Water Code, Section 49.236(b)(1).

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board: 1) authorized publication of a proposed 2025 tax rate at $0.288 per $100 of assessed value in the Conroe Courier; and 2) schedule the public hearing regarding setting such rate at the regular meeting of Wednesday, September 10, 2025, at 9:00 a.m.

APPROVAL OF MINUTES OF JULY 9, 2025 REGULAR MEETING

The President then directed the Board to the approval of the July 9, 2025 regular meeting minutes. A discussion ensued.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the minutes of the July 9, 2025 regular meeting minutes, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller reviewed with the Board the Tax Assessor-Collector’s Report for the month of June 2025, a copy of which is attached hereto, including past monthly collections and credits as reported by the Tax Assessor-Collector.

Mr. Miller went on to note that 97.45% of the 2024 taxes have been collected as of June 30, 2025.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

BOOKKEEPER’S REPORT

Mr. Miller presented to and reviewed with the Board the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments of the District. A discussion ensued on solid waste collections charges.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented.

Mr. Miller next presented to the Board the Quarterly Investment Report for the period ending June 30, 2025, a copy of which is attached hereto.

Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the Quarterly Investment Report for the period ending June 30, 2025, as presented.

ENGINEER’S REPORT

Mr. Murphy then presented the Engineer’s Report, a copy of which is attached hereto.

Mr. Murphy updated the Board on the Lift Station Nos. 5, 6 and 7 Rehabilitation Project. Mr. Murphy stated that CFG Industries (“CFG”) completed the rehabilitation work on the Walden Estates Drive Lift Station No. 6, anticipates completion and back on-line for Walden Road and River Road Lift Station No. 5 next week, then mobilizing to Marina Vista Lift Station No. 7. A discussion ensued. Mr. Murphy then presented for approval, CFG’s Pay Estimate No. 2 in the amount of $138,600.00 and stated that the project is approximately 39% completed. A discussion ensued.

Mr. Murphy next provided an update regarding MUD 9’s Buckingham Water Treatment Plant (the “WTP”) Generator Project. Mr. Murphy stated that MUD 9 awarded the contract to Texan Mutual and Industrial and a Notice to Proceed was issued on August 4, 2025. Mr. Murphy further stated that MUD 9’s engineer is reviewing submittals and options for fuel storage. A discussion ensued.

Mr. Murphy presented to the Board an update regarding estimates for possible demolition of the Old Walden Fire Station (“OWFS”). Mr. Murphy stated that Quiddity received revised bids from the three (3) original bidders, including Arcosa Construction Services (“Arcosa”), whose bid of $28,027.50 being the most advantageous for the District. A discussion ensued regarding the proper disposal of asbestos, if determined. Mr. Murphy stated that Quiddity will reach out with Arcosa and request certain costs for additional services and requirements, if necessary be confirmed during contract negotiations.

Director Moravec stated JT Lynch Company, LLC (“JT Lynch”) was unable to present an update for today’s Board meeting, but the Committee presented options for signage size and placement of same. A discussion ensued and it was the consensus of the Board to accept the Committee’s recommendation signage for marketing the land for sale. Director Patton informed the Board that utilities at the OWFS location have been terminated with the exception of water.

It was the consensus of the Board to move forward with the demolition of the OWFS building and its foundation and have Quiddity prepare a contract with Arcosa for same, subject to RAB review.

Mr. Murphy next updated the Board regarding a request to abandon a utility easement (the “UE”) located between Lots 31 and 32 in Block 9 of Walden on Lake Conroe, Section 2.
Mr. Murphy stated that Quiddity has reviewed all submitted documentation and recommends Board approval of abandonment of the UE. Mr. Barner stated that all costs in preparation of the documents necessary to abandon the UE have been received and upon the Board’s approval of the abandonment of the UE, will record the UE and provide the property owner with same.

Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, including: 1) CFG’s Pay Estimate No. 2 in the amount of $138,600.00; 2) acceptance of Arcosa’s proposal for demolition of the OWFS in the amount of $28,027.50 and authorize Quiddity to prepare a contract for same, subject to RAB review; and 3) abandonment of the UE.

OPERATOR’S REPORT

Mr. Wright next presented the Operator’s Report, a copy of which is attached hereto.

Mr. Wright reported that 770 customers within the District are currently receiving electronic billing statements. Mr. Wright further reported that there were 13 new customers paying electronically, of which six (6) elected to receive paperless billing. A discussion ensued.

Mr. Wright next reported that the Water Accountability Ratio for the District and MUD 9 was 95% for the past billing cycle.

Mr. Wright reported on repairs necessary to the aged submersible pump at Lift Station
No. 7. Mr. Wright stated that Hays North is reviewing quotes and options for repair over replacement and will update the Board at the next meeting. Director Moravec requested Mr. Wright take before/after pictures of this issue.

Mr. Wright updated the Board regarding a storm drain repair on Lake Estates Drive. Mr. Wright stated that the hole was back from the bulkhead and repairs were completed at minimal cost to the District.

Mr. Wright reported that Hays North’s billing has an option for residents to “opt in” on emergency notification system to customers. Mr. Wright stated that currently Hays North is using Constant Contact, at their cost, as their provider, to disburse notifications. An extensive discussion ensued. Mr. Barner stated that he is able to provide the Board with examples of policies and procedures regarding the process for sending out notifications. It was consensus of the Board that a policy should be implemented regarding the District’s notifications to customers. Mr. Barner stated that RAB will coordinate with the Operator on drafting and providing a policy to the Board for review.

Upon a motion by Director Barlow, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented.

SECURITY AT DISTRICT FACILITIES

Director White next updated the Board on Red Tiger’s assessment of the District’s facilities protections against cyber-attacks, stating that Director White and Mr. Wright are meeting with Red Tiger to review the District’s facilities. A discussion ensued. Mr. Barner updated the Board that RAB will work with Red Tiger to obtain the requisite documents from Red Tiger, including the requisite Form 1295 Certificate of Interested Parties.

MISCELLANEOUS REPORTS

Regarding the WCIA, Mr. McClellan, General Manager of the WCIA Board, provided an update on the current events of the WCIA. Mr. McClellan requested a meeting with Director White regarding assessment of cyber security. Mr. McClellan stated that WCIA met with Commissioner’s Court and was granted approval for speed limit sign adjustments for the District and awaiting approval from the Texas Department of Transportation before implementation same. Mr. McCellan further stated that WCIA is working with the Texas State University for implementation of safety security protocol for the WCIA facilities.

Mr. Geiselhart then updated and summarized to the Board the actions taken in the recent MUD 9 meeting.

Mr. Geiselhart stated that MUD 9 continues replacing old meters with smart meters, when warranted. Mr. Geiselhart further stated that data messaging communication regarding the smart meters will be conveyed to residents, once the change out is complete, through a pilot program initiated by the Operator. A lengthy discussion ensued.

Mr. Geiselhart next updated the Board on short-term rentals in the District regarding short-term leases. A discussion ensued.

Mr. Geiselhart then updated the Board that he will recommend MUD 9’s approved payment for the District’s Browning WTP Ground Storage Tank Project (the “GST Project”). An extensive discussion ensued regarding the GST Project and the provisions of the Alternative Water Supply (“AWS”) Facilities Agreement concerning cost sharing. It was the consensus of the Board that Director Patton and Mr. Geiselhart work together to discuss recommendations to present to each Board concerning cost sharing and the AWS Agreement.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the provisions of the Interlocal Agreement with MUD 9 related to sharing of costs of certain facilities pursuant to such agreement. Mr. Barner stated that he has spoken with MUD 9’s counsel about the matter and that RAB will wait until Directors Patton and Geiselhart meet and provide comments.

Mr. Barner then presented to and reviewed with the Board RAB’s Legislative Update Memorandum of the 89th Legislative Session (2025) concerning the bills that impact special purpose districts and governmental entities such as the District.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:45 a.m.

PASSED AND APPROVED this the 10th day of September, 2025.

Secretary, Board of Directors