FY25 Annual Comprehensive Financial Report Final

CITYOFCIBOLO,TEXAS

ANNUALCOMPREHENSIVEFINANCIALREPORT

FISCALYEARENDEDSEPTEMBER30,2025

OFFICIALS ISSUING REPORT

WayneReed CityManager

AnnaMiranda DirectorofFinance

FINANCIALSECTION(CONTINUED)

COMPLIANCESECTION

REPORTONINTERNALCONTROLOVERFINANCIALREPORTINGANDONCOMPLIANCE ANDOTHER MATTERSBASEDONANAUDITOFFINANCIALSTATEMENTS

PERFORMEDINACCORDANCEWITH GOVERNMENT AUDITING STANDARDS ................165

INTRODUCTORYSECTION

CityofCibolo200SouthMain/POBOX826Cibolo,Texas78108(210)658-9900www.cibolotx.gov

March10, 2026

TotheHonorableMayor,CityCouncil,andCitizensoftheCityofCibolo:

State law requires that local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles(GAAP) in the United States of America and audited in accordance with generally accepted auditing standards in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue theannual comprehensive financial report of the City of Cibolo for the fiscal yearendedSeptember30, 2025

This report consists of management's representations concerning the finances of the City of Cibolo. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Cibolo has established a comprehensive internal control framework that is designed both to protect the government's assetsfrom loss, theft, or misuse; and to compile sufficient, reliable information for the preparation of the City of Cibolo's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Cibolo comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurancethat the financial statements will befreefrommaterialmisstatement. Asmanagement, we assert that, to the best of our knowledge and belief,thisfinancial reportis complete andreliablein all materialrespects.

The CityofCibolo's financialstatementshave beenaudited by Armstrong,Vaughan&Associates,a firm of licensed certified public accountants. The goal of the independent audit was to providereasonable assurance that the financial statements of the City of Cibolo, for the fiscal year ended September 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion thatthe City of Cibolo's financial statements for thefiscalyearendedSeptember30, 2025,arefairlypresented inconformitywith GAAP. Theindependent auditor's report is presentedasthefirstcomponentofthefinancial sectionofthisreport.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunctionwith it. The Cityof Cibolo's MD&Acan befound immediatelyfollowingthe report oftheindependentauditors.

The City of Cibolo,incorporated in 1965, islocated in the centralpart of Texas, whichis considered to be a top growth area in the state, and one of the top growth areas in the country. The City ofCibolo currently occupies a land area of 15.9 square miles and serves an estimated population of over 35,000. The City of Cibolo is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statue to extend its corporate limits by annexation, which occurs periodicallywhendeemedappropriatebythegoverningbody.

The City of Cibolo has operated under the council-manager form of government since September 2004. Policy-making and legislative authority are vested in a City Council consisting of the mayorand 7 members. The CityCouncil is responsiblefor establishingpublic policy onCitymattersby the passage of appropriate ordinances and resolutions. The City Manager is responsible for overseeing the day-to-day operations of the government, implementing policy established by City Council, and for appointing the heads of the various departments. InNovember 2021, citizensvotedto alterthecomposition ofCityCouncil from7singlememberdistrictsto4representing districtsand3electedat-large. CityCouncil andtheMayorservethree-year, staggeredterms.

The City of Cibolo provides a full range of services, including police and fire protection, the construction and maintenance of streets and drainage ways, parks maintenance, water and wastewater services, building inspection,planningandzoning,municipalcodecomplianceandanimalservices.

The annual budget serves as the foundation for the City of Cibolo's financial planning and control. All departments of the City of Cibolo are required to submit requests forappropriation to the City Manager by June of each year. The City Manager uses these requests asthe starting point for developinga proposed budget. The City Manager then presents this proposed budget to the council for review prior to August 15th. The CityCouncilholds public hearings and community meetings on the proposed budgetandadopts a final budget by no later than September 30th, the close of the City of Cibolo's fiscal year. The City Council may authorize budget amendments as necessary during the year when unforeseen events occur. Budget to actual comparisons are providedin this reportfor each individualgovernmentalfund for which an appropriatedannual budgethasbeenadopted. Forthegeneralfund,thiscomparisonispresentedonpages6972aspartofthe requiredsupplementaryinformation.

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understoodwhen it is considered from thebroader perspective of thespecific environment within which the City ofCibolo operates.

Local economy. TheCityof Cibolo, strategically locatedontheInterstate10andInterstate35corridorsjust outsideofSanAntonio,isoneofthefastestgrowingcitiesintheState. Withthecontinuedpopulationgrowth, business activity in Cibolo has flourished. Several factors make Cibolo a premier place to do business: proximity to major urban conveniences, transportation options, and a young, highly educated and skilled workforce. Inaddition,thestrongmilitarypresenceintheareacontributestothestabilityinthearea.

Cibolo’s first major retail development project, Wal-Mart Super Center opened in January of 2016. This constructionspurredalotofactivityinthesamegeneralareawithseveralpersonalservicebusinesses,various quickservicerestaurantsandotherretailerslocatinginnewlyconstructedstripcenters nearby. Thisareanow boastsover40salestaxgeneratingbusinesses.

TheNorthernpartoftheCityalongIH35,knownasCiboloCrossing,isunderdevelopmentaswell.InMay 2019,SantikosEntertainmentopenedafamilyentertainmentcenterinCibolo. Theentertainmentcenter includes12theaterswithluxuryrecliningseating,arcadegames,sportsbarand16bowlinglanes.Thefacility employsapproximately75people.InDecember2021,LivingSpacesopeneda140,000squarefootfurniture storeasanotheranchorinthiscenter.This80-acreprojectalsoincludesthedevelopmentoffamilyrestaurants andretaildevelopmentandhashadasignificantimpactonCibolo’seconomy. Futuremulti-family developmentinthisareaisanticipatedandwillfurtherincreaseretaildevelopment.

Alongwithgrowthinnewretailsectors,Cibolo’sdowntownareaisalsoexperiencingrevitalization,withmany peopledrawntothequaintatmosphere,goodfoodandentertainmentbeingofferedinthe‘OldTownDistrict’. AdowntownMasterplanisunderwaytoassistinfurtherdevelopmentinthisarea.

OntheCity’sIH-10border,AisinAWCo.,Ltd.,aleadingmanufacturerofautomobiletransmissions completedconstructionofa500,000squarefootproductionfacilityintheCityofCibolo.AWTexasexpanded itsfacilitytodoubleitssizein2023.AWTexashasbroughtover1000primaryjobstoCibolo.

Long-term financial planningandrelevantfinancialpolicies. TheCityofCibolofundbalancepolicysets theCity’sguidelineformaintainingafundbalancelevelinthegeneralfundthatcontributestoourfinancial stabilityandourstrongbondrating.Withthemostrecentamendmenttoourfundbalancepolicy,itistheCity’s goaltomaintainfundbalanceat25%ofrevenues(achangefrom28%ofexpenditures).Historically,theCity hasbeenverydependentonpropertytaxrevenueandbuildingpermitsandfees.Withthecontinued developmentofretailbusiness,ourrevenuesareexpectedtobemorediversewhichwillhelptomaintaina stablepropertytaxrate.

Major Initiatives. TheCity’sfiscalyear2026budgetconsidersarecoveringeconomy. Majorinitiatives included:

 compensationincreasesfornon-publicsafetypositionstoremaincompetitivewiththemarketand enhancerecruitmentandretention(publicsafetypositionswereadjustedtomarketinthepriorbudget cycle),

 theadditionof3grant-fundedpublicsafetypositions;and

 maintainingtheCity’sI&Staxratetofundourfive-yearcapitalimprovementprogram.

InNovember2024,votersauthorizedissuanceof$26.1millioninGeneralObligationbondsforanAnimal ServicesFacilityandPublicSafetyFacility.Completionofthedesignoftheseprojectswillbeunderwayin 2026,withplansforconstructionin2027.

Projectsfundedbypriorbondstoaddressinfrastructurechallengeshavebeenrecentlycompletedorare underway.ThesearediscussedingreaterdetailintheMD&A.

Awardsand Acknowledgements

TheGovernmentFinanceOfficersAssociationoftheUnitedStatesandCanada(GFOA)awardedaCertificate ofAchievementforExcellenceinFinancialReportingtotheCityofCiboloforitsannualcomprehensive financialreportforthefiscalyearendedSeptember30,2024. InordertobeawardedaCertificateof Achievement,agovernmentmustpublishaneasilyreadableandefficientlyorganizedannualcomprehensive financialreport.Thisreportmustsatisfybothgenerallyacceptedaccountingprinciplesandapplicablelegal requirements.

In2025,Cibolo’sLowerSeguinRoadReconstructionprojectwas recognizedastheProjectoftheYearinthe Transportation category for Small Cities/Rural Communities by the Texas Chapter of the American Public WorksAssociation(TxAPWA). Theproject,deliveredthroughpartnershipbetweentheCity,engineeringfirm of Lockwood, Andrews & Newnam, and D&DContractors, reconstructed a key arterial roadway, improving mobilityand safetyfor residents andtravelers in oneof thefastest-growing areas inthe state. TheTxAPWA award honors excellence in the management and administration of public works projects, recognizing teams for their innovation, partnership and service to the public. In addition, our Drainage Superintendent was recognized for DistinguishedService toPublicWorksand ourCommunicationsManager was recognized for ExceptionalPerformancein Journalism.

In2016andagainin2021,CiboloreceivedGoldcertificationfromtheScenicTexas-ScenicCityCertification Program. The Scenic City Certification Program provides a proven, highly-regarded tool to Texas cities for assessment,evaluationandrecognitionofinfrastructurestandards. Ciboloisoneoftwenty-fivecitiesinTexas that has achieved Gold recognition. There are five levels of recognition. Thefourth level, Gold recognition, requires 80-89%oftotalpossiblepoints. Thecertificationcontinuesforfiveyears.

Cibolo frequently appears in top-10 lists for San Antonio suburbs due to its combination of quality housing, education, andlowcrimerates.

Morerecently, Cibolowas ranked:

 #134of1,050inNiche’s “BestPlacestoBuyaHouseinTexas”in2025;

 #83of417inNiche’s“MostDiverseSuburbs inTexas”in2025;

 #83of417inNiche’s“BestSuburbstoRaiseaFamilyinTexas”in2025;and

 #64of417inNiche’s“BestSuburbstoBuyaHouseinTexas”in2025.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to allmembersof thedepartmentwhoassistedandcontributedtothepreparationofthisreport.

Inaddition,withouttheassistanceofeverydepartmenthead,we wouldnothave the successes we've enjoyed. Credit also must be given to MayorAllen and the City Councilmembers fortheirleadership andsupport of theCityManagerandstaff.

Respectfullysubmitted,

WayneReed CityManager

x

AnnaS.Miranda,CPA,CGFO FinanceDirector

CITYOFCIBOLO,TEXAS

PRINCIPALOFFICIALS

YEARENDEDSEPTEMBER30,2025

ELECTED OFFICIALS

MAYOR MARKALLEN

CITYCOUNCIL,PLACE1 JEFFMCGLOTHIN

CITYCOUNCIL,PLACE2 RANDYROBERTS

CITYCOUNCIL,PLACE3 ROBERTMAHONEY

CITYCOUNCIL,PLACE4 KATIECUNNINGHAM

CITYCOUNCIL,PLACE5 NORMASANCHEZ-STEPHENS

CITYCOUNCIL,PLACE6 DONETTAROBERTS

CITYCOUNCIL,PLACE7 JOELHICKS

CITYOFFICIALS

CITYMANAGER WAYNEREED

DIRECTOROFFINANCE ANNAMIRANDA

CITYSECRETARY PEGGYCIMICS

PLANNINGANDECNOMICDEVELOPMENTDIRECTOR RICKVASQUEZ

POLICECHIEF THEDRICKANDRES

FIRECHIEF MARIOTRONCOSO

INFORMATIONSERVICESDIRECTOR TRACYBEEKMAN

CITYATTORNEY DENTONNAVARRORODRIQUEZBERNALSANTEE&ZACH DANSANTEE

CITYOFCIBOLO ORGANIZATIONALCHART

FINANCIALSECTION

INDEPENDENTAUDITOR'S REPORT

TotheHonorableMayorand MembersoftheCityCouncil CityofCibolo, Texas

Reporton AuditoftheFinancialStatements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, andtheaggregate remaining fund informationof theCityof Cibolo asof and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprisetheCityofCibolo’sbasicfinancialstatementsaslistedinthetableofcontents.

Inouropinion,thefinancialstatementsreferredto abovepresentfairly, inallmaterialrespects,therespective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cibolo, as of September 30, 2025, and the respective changes in financial position and, where applicable,cash flowsthereof for theyearthen ended in accordance with accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America(GAAS)andthestandardsapplicabletofinancialauditscontainedin Government AuditingStandards, issued bytheComptrollerGeneral oftheUnitedStates. Ourresponsibilitiesunderthosestandardsarefurther describedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport. We arerequiredtobeindependentoftheCityofCiboloandtomeetourotherethicalresponsibilities,inaccordance with therelevant ethicalrequirementsrelatingtoouraudit. Webelievethat theauditevidenceweobtainedis sufficientand appropriatetoprovideabasis forouraudit opinions.

Emphasis of Matter - Change in Accounting Principle

As discussed in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance in GASBStatement101relatedtocompensatedabsences.Ouropinionisnotmodifiedwithrespecttothismatter.

Responsibilities of Management for the Financial Statements

The City of Cibolo’s management is responsible for the preparation and fair presentation of these financial statements in accordancewith 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 presentationoffinancialstatementsthatarefreefrommaterial misstatement,whetherduetofraudorerror.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered inthe aggregate, that raisesubstantial doubt about theCityof Cibolo’s abilityto continue as agoingconcern for oneyear after the date that thefinancial statementsare issued, includingany currently knowninformationthatmayraisesubstantialdoubtshortly thereafter.

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 opinions. Reasonableassuranceisahighlevel ofassurancebut isnotabsoluteassuranceand thereforeisnot aguaranteethatanauditconductedinaccordancewithGAASand Government Auditing Standards willalways detectamaterialmisstatementwhenitexists. Theriskofnotdetectingamaterialmisstatementresultingfrom fraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions, 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 judgement made by a reasonableuserbasedonthefinancialstatements.

InperforminganauditinaccordancewithGAAS and Government Auditing Standards,we:

 Exerciseprofessional judgementandmaintainprofessional skepticismthroughouttheaudit.

 Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraud orerror, anddesignandperformauditproceduresresponsivetothoserisks. Suchproceduresinclude examining,onatestbasis,evidenceregardingtheamountsanddisclosuresinthefinancialstatements.

 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 effectivenessoftheCityofCibolo’sinternal control. Accordingly, nosuchopinionisexpressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accountingestimatesmadebymanagement,aswellasevaluatetheoverallpresentationofthefinancial statements.

 Conclude whether, in ourjudgement, thereare conditions orevents, considered intheaggregate, that raisesubstantialdoubtabouttheCityofCibolo’sabilitytocontinueasagoingconcernforareasonable periodoftime.

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 weidentifiedduringtheaudit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and schedules related to the City’s net pension and total other post-employment benefit liabilities – TMRS, as listedin thetableof contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is requiredbythe GovernmentalAccounting Standards Board, who considers it tobe anessential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, orhistoricalcontext.Wehaveappliedcertainlimitedprocedurestotherequiredsupplementaryinformationin accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistencywithmanagement’sresponsestoourinquiries,thebasicfinancialstatements,andotherknowledge we obtained during our audit of the basicfinancial 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 anopinionorprovideany assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Cibolo’ basic financial statements as a whole. The comparative statements, and combiningandindividualnonmajorfundfinancialstatements,arepresentedforpurposesofadditionalanalysis andarenot arequiredpartofthebasicfinancial statements.

The comparative financial statements, combining and individual nonmajor fund financial statements are the responsibilityofmanagementandwerederivedfromandrelatedirectlytotheunderlyingaccountingandother records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditingstandards generally accepted in the UnitedStates ofAmerica. In our opinion, the combining, individual nonmajor fund financial statements, and SEFA are fairly stated, in all materialrespects, inrelationtothebasicfinancialstatementsasawhole.

Other Information

Management is responsible for the other information included in the annual report. The other information comprises theintroductorysectionandstatisticalsectionbutdoesnotincludethefinancialstatementsandour auditor’s report thereon. Ouropinions onthe financialstatements donotcoverthe otherinformation, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the otherinformationand the financial statements, or the other informationotherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatementoftheotherinformationexists,wearerequiredtodescribeitin ourreport.

OtherReportingRequiredby Government Auditing Standards

Inaccordancewith Government Auditing Standards, wehavealsoissued ourreportdated March10, 2026on ourconsiderationofCityofCibolo’sinternalcontroloverfinancialreportingandonourtestsofitscompliance withcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.Thepurposeof that report is to describe the scope of our testing of internal control over financial reporting and compliance andtheresults ofthattesting, andnottoprovideanopinionontheinternal control overfinancial reportingor on compliance. That report is anintegral part ofanaudit performed inaccordancewith Government Auditing Standards inconsideringCityofCibolo’sinternal controloverfinancial reportingandcompliance.

Armstrong,Vaughan&Associates,P.C.

March10, 2026

As management of the City of Cibolo, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City of Cibolo for the fiscal year ended September 30, 2025. We encourage readers to consider the information presented here in conjunction with additional informationthatwehavefurnishedinourletteroftransmittal,whichcanbefoundintheintroductorysection ofthisreport.

FINANCIALHIGHLIGHTS

 The assets and deferred outflows of resources of the City of Cibolo exceeded its liabilities and deferred inflows of resources by $144.4million(net position) atthe closeof themostrecent fiscal year. Of this amount, $24.7 million (unrestricted net position) may be used to meet the City's operationalneeds.

 The City's total net position increased by $14.0 million mainly due to increased operating grants, increasingpropertyvalues,and increasedutilityratesoutpacing inflationofexpenditures.

 The City’s deferred outflows totaled $3.4 million at year end, an increase of $677 thousand in comparisonwiththeprioryearduetoincreasesinthecontributionratesandexperienceratesofthe pensionandotherpost-retirement employeebenefits.

 The City’s deferred inflows totaled $2.8 million at year end, an increase of $1.2 million in comparisonwiththeprioryearduetoanincreaseininvestment earnings.

 As of the close of the current fiscal year, the City's governmental funds reported combined ending fundbalancesof$34million,anincreaseof$9.1millionincomparisonwiththeprioryear.Primarily duetoissuanceofnewbonds.IntheGeneralFund,theCitybudgetedadeficiencyofrevenuesunder expenditures of $1.3 million. However, actual decreases in fund balanceof $302 thousand werea result of higher than anticipated issuance of debt. Regarding expenses, overall expenses in the General Fund were greater than budgeted due to higher than anticipated staffing levels within the FireDepartment, resultinginhigherthananticipatedsalaries.

 Attheendofthefiscalyear, thecombinedtotaloftheGeneral Fund assigned andunassignedfund balances was $6.7 million which is 31.6% or 3.8 months of the general fund expenditures not includingcapitaloutlayordebtservice.

 During the fiscal year, the City made payments on bonds and other debt instruments. In addition theyissued$13.0millioninnewbonded debt. Thisresultedinanetincreaseof$8.4million. Asof theend ofthecurrent year, theCityhad$69.0millioninbondsandotherdebt outstanding.

OVERVIEWOFTHEFINANCIALSTATEMENTS

The discussion and analysis is intended to serve as the introduction of the City of Cibolo, Texas’ basic financial statements which are comprised of three components: (1) government-wide financial statements, (2)fundfinancial statements,and(3)notestothefinancial statements.

Government-Wide Financial Statements – The government-wide financial statements are designed to providereaderswithabroadoverviewoftheCity’sfinances,inamannersimilartoaprivate-sectorbusiness financial presentation.

The statement of net position is a presentation of the City’s assets and liabilities, including capital and infrastructure assets, and long-term liabilities. This statement reports the difference between assets and liabilities as net position. Overtime, increases or decreases in net position mayserve as a useful indicator ofwhetherthefinancial positionoftheCityisimprovingordeteriorating.

The statement of activitiespresents information regarding increases and decreases to the government’s net position for the fiscal year. Changes in net position are recorded when the underlying event giving rise to thechangeoccursregardlessofthetimingofcashflows.

Therefore, revenuesandexpenses reportedinthisstatementforsomeitemswillonlyresultincashflowsin future fiscal periods(e.g., uncollectedtaxes andearned butunused personal leave). Bothgovernment-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or asignificant portion oftheir costs throughuserfees or charges (business-typeactivities). Governmental activities include general government, public safety, public works, parks and recreation, library, and communitydevelopment. Thebusiness-typeactivitiesoftheCityarewaterand sewer.

Fund FinancialStatements –

Theaccounts oftheCity are organized onthebasisof funds, each of which is considered a separate accounting entity. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activitiesarecontrolled.

Fund financial statements are used to present financial information detailing resources that have been identified for specific activities. The focus of the fund financial statements is on the City’s major funds, although non-major funds are also presented in aggregate and further detailed in the supplementary statements. TheCityusesfundaccountingtoensureanddemonstratecompliancewithrequirementsplaced on resources. Funds are divided into three types: governmental, proprietary, and fiduciary. However, the Citydoesnot haveanyfiduciaryfunds.

Governmental Funds – Governmental funds are used for essentially the same functions reported in the governmentalactivitiesinthegovernment-widefinancialstatements.However,unlikethegovernment-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendableresourcesavailableforcurrent spending, as well as onbalancesofspendableresourcesavailable at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financingrequirements.

Asthefocus ofgovernmentalfundsisnarrowerthanthatofthegovernment-widefinancial statements, it is useful tocomparetheinformationpresentedforgovernmentalfunds withsimilarinformationpresentedfor governmental activities in the government-wide financial statements. By doing so, readers may better understandthelong-termimpactofthegovernment’snear-termfinancingdecisions.Boththegovernmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Proprietary Funds – TheCitymaintainsmultiple proprietary funds. Enterprise fundsare usedto report the functions presented in business-type activities in the government-wide financial statements. The City uses theenterprisefundtoaccountfortheprovision ofdrainage,garbage,water,andsewerservicestoresidents.

Proprietaryfundfinancialstatementsprovideseparateandmoredetailedinformationforthewaterandsewer fund. Thewaterandsewerfundisconsidered amajorfundoftheCity.

Notes to the Basic Financial Statements – The notes provide additional information that is essential to a fullunderstandingofthedataprovidedinthegovernment-wideand fundfinancialstatements.

OtherInformation–Inadditiontothebasicfinancialstatements andaccompanyingnotes,this reportalso presents certain required supplementary information on the City’s general fund budget, red light camera fund,andthestreetmaintenancefundbudget,whichareadoptedonanannualbasis.Abudgetarycomparison statementhasbeenprovidedforthesefundsinordertodemonstratebudgetarycompliancewiththisbudget.

In addition, this report also contains certain required supplementary information concerning the City of Cibolo’sprogressinfundingits obligationtoprovidepensionbenefitsandotherpostemploymentbenefits.

The combining statements referred to earlier in connections with non-major governmental funds are presentedimmediatelyfollowingtherequiredsupplementaryinformation.

GOVERNMENT-WIDEFINANCIALANALYSIS

Below is acomparative summaryof thegovernmentalactivities and business-typeactivitiesas requiredby GASBStatementNo.34.

TABLE A-1 NETPOSITION

GovernmentalActivitiesBusiness-TypeActivitiesTotal

Assets

CurrentAssets40,494,467$33,404,101$32,074,839$29,066,337$72,569,306$62,470,438 $ CapitalandOtherAssets98,373,76593,249,22261,948,68056,787,077160,322,445150,036,299 TotalAssets138,868,232126,653,32394,023,51985,853,414232,891,751212,506,737

DeferredOutflows ofResources

Liabilities

2,980,6932,413,111404,084294,4943,384,7772,707,605

CurrentLiabilities13,948,93515,437,3264,142,3263,218,09618,091,26118,655,422

NoncurrentLiabilities66,385,12858,379,3074,531,0315,422,06070,916,15963,801,367

TotalLiabilities80,334,06373,816,6338,673,3578,640,15689,007,42082,456,789

DeferredInflows ofResources

NetPosition

NetInvestmentin

2,215,8911,177,189589,860478,2362,805,7511,655,425

CapitalAssets42,392,76638,010,48159,394,28253,630,160101,787,04891,640,641

Restricted3,133,1602,682,82914,733,28814,188,99417,866,44816,871,823

Unrestricted13,773,04513,379,30211,036,8169,210,36224,809,86122,589,664

TotalNetPosition59,298,971$54,072,612$85,164,386$77,029,516$144,463,357$131,102,128 $

Deferred outflows of resources are related pensions and other post-employment benefits and represent a consumption of net position that applies to future period(s) and will not be recognized as an expenditure until then. Deferred inflows of resources are related to other post-employment benefits and represent an acquisition of net position that applies to a future period and will not be recognized as revenue until that time. Additional information regarding the City’s deferred outflows and deferred inflows of resources can befoundinNotes8 and9ofthisreport.

ThelargestportionoftheCity’snetposition,$101.8million,representsitsinvestmentincapitalassets(e.g., land, constructioninprogress, buildings,machinery, andequipment, netofaccumulateddepreciation), less anyrelateddebtusedtoacquirethoseassetsthatarestill outstanding. TheCityofCibolo,Texasusesthese assets to provide services to citizens; consequently, these assets are not available for future spending. AlthoughtheCity’sinvestmentinitscapitalassetsisreportednetofrelateddebt,itshouldbenotedthatthe resourcesneededtorepaythisdebtmustbeprovidedfromothersources,sincethecapitalassetsthemselves cannotbeusedtoliquidatetheseliabilities.

Of theother net position, $17.9millionrepresents resources that aresubjecttoexternal restrictions onhow theymaybeused.$24.7million(unrestrictednetposition)maybeusedtomeettheCity’soperationalneeds.

Governmental activities increased net position by $5.8 million, which is attributable to increased intergovernmentalrevenuefromGuadalupeCounty,operatinggrantsfromtheFederalGovernment, and continuedgrowthofpropertyvaluesand rateadjustments.Keyelementsofthisincreaseareasfollows:

A-2

CHANGES INNETPOSITIONFORGOVERNMENTALANDBUSINESS-TYPEACTIVITIES

GovernmentalActivitiesBusiness-TypeActivitiesTotal

Revenues:202520242025202420252024

ProgramRevenues: ChargesforServices3,384,714$4,192,132$20,601,213$20,733,762$23,985,927$24,925,894 $ OperatingGrantsand Contributions2,728,7381,657,138114,241-2,842,9791,657,138 CapitalGrantsand Contributions2,252,6292,946,3683,662,1473,492,7415,914,7766,439,109 GeneralRevenues PropertyTaxes18,110,46416,042,946--18,110,46416,042,946 SalesTaxes6,881,3716,117,903--6,881,3716,117,903 FranchiseTaxes1,459,6751,385,124--1,459,6751,385,124 OccupancyTaxes5,77019,103--5,77019,103 InvestmentEarnings1,650,9932,021,3111,231,6211,321,8412,882,6143,343,152 Miscellaneous2,391,8071,770,809133,8692,5422,525,6761,773,351 TotalRevenues38,866,16136,152,83425,743,09125,550,88664,609,25261,703,720

Expenses: Administration6,665,0845,130,4084,301,5893,316,77910,966,6738,447,187 PublicSafety5,606,8516,057,627--5,606,8516,057,627 PublicWorks7,861,4388,392,351--7,861,4388,392,351 InformationTechnologyOffice1,746,2601,221,319--1,746,2601,221,319 ParksandRecreation2,449,9242,066,346--2,449,9242,066,346 FireDepartment6,494,3025,904,1086,494,3025,904,108 AnimalControl499,304423,927--499,304423,927 Water/WastewaterUtilities--8,324,7007,738,9298,324,7007,738,929 Drainage--1,412,7841,206,5051,412,7841,206,505 Garbage--3,059,6193,467,5443,059,6193,467,544 Interest2,135,0981,777,54369,046100,0362,204,1441,877,579 TotalExpenses33,458,26130,973,62917,167,73815,829,79350,625,99946,803,422

INCREASEINNETPOSITION BEFORETRANSFERS5,407,9005,179,2058,575,3539,721,09313,983,25314,900,298 TransfersIn(Out)387,908(323,102)(387,908)323,102-CHANGEINNETPOSITION5,795,8084,856,1038,187,44510,044,19513,983,25314,900,298

BEGINNINGNETPOSITION54,072,61249,216,50977,029,51666,985,321131,102,128116,201,830 PriorPeriodAdjustment(569,449)-(52,575)-(622,024)ENDINGNETPOSITION$59,298,97154,072,612$85,164,386$77,029,516$144,463,357$131,102,128 $

EXPENSESANDPROGRAMREVENEUES –GOVERNMENTALACTIVITIES

TOTALEXPENSES 2025AND2024-GOVERNMENT-WIDE

Revenues-GovernmentalActivities

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-

Business-Type

Business-Type activities increased net position by $8.2 million, which is mainly attributable to increased utility rates. While we saw growth in expenditures, utility rates grew to accommodate this inflation and maintaingrowth.

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$-

ProprietaryFunds

Financial Analysis oftheGovernment'sFunds

Revenues Expenses

NonoperatingRevenues

CapitalContributionsandTransfers

As noted earlier, the City of Cibolo uses fund accounting to ensure and demonstrate compliance with finance-relatedlegalrequirements.

Governmental Funds - Activitiesoftheprimarygovernment’s general fund, capitalprojectsfund, special revenuefundsanddebtservicefundsareconsideredgeneral government functions. Thegeneralfundisthe City’s general operating fund. The capital projects fund is used to account for financial activity related to the acquisition and construction of major capital facilities. Special revenue funds are used to account for proceedsofspecificsourcesthatarelegallyrestrictedastoexpenditures. Thedebtservicefundsareusedto account for financial activity related to the City’s general bonded indebtedness, as well as long-term obligations.

As September 30, 2025, the City’s governmental funds reported combined ending fund balances of $34.1 million, an increase of $9.1 million in comparison with fiscal year 2024. The General fund which is the chiefoperatingfundoftheCity,attheendofthecurrentfiscalyear,hadanunrestrictedfundbalanceof$6.7 million, or approximately 3.8 months of operating expenditures (excluding Capital Outlay and Debt Service).

ForthefiscalyearendedSeptember30,2025,thefundbalanceoftheCity’sGeneralfunddecreasedby$302 thousand.Keyfactors intheincreaseareasfollows:

• Thedecreaseismostlyattributabletohigherthananticipated staffinginthefiredepartmentleading to higherthanbudgetedsalaries&benefits.

• The General Fund experienced reduced license and permit revenue as theseincome streams began beingrecordedinaseparatenonmajorfund.

• Budgetedexpendituregrowthdidnotoccur,namelyamongsalariesacrosstheboard,excludingthe FireDepartment, as theCitywasnotabletofill asmanyopenpositionsas anticipated.

• RevenueswereunderbudgetoverallduetolowerthananticipatedgrowthinIntergovernmentaland Property Tax revenue, astheCitydid notexperience property valuegrowthat theanticipatedlevel nordiditreceivethelevelofanticipatedTexasDepartment ofTransportationreimbursements.

For the fiscal year ended September 30, 2025, the fund balance of the City’s Grant Fund decreased by $8 thousand,astheycontinuedspendingAmericanRescueAct moniesonvarious approvedprojects.

Forthefiscal yearendedSeptember30,2025, thefundbalanceoftheCity’sTrafficImpactFundincreased by $900 thousand, asignificant variance from thereduction of $3.7 million that was budgeted, asthey did not performanticipatedstreetrepairs.

Forthefiscal yearendedSeptember30, 2025, thefundbalanceoftheCity’sCapitalProject fundincreased $8.6million, this wasmainly causedby$13.0millionin Certificates of Obligationsbeingissued forfuture projects.

TheDebt Servicefundhas atotalfundbalanceof$1.7million, all ofwhichisrestricted forthepaymentof debt service. Thenetincreaseinthefundbalanceduring thecurrent yearinthedebtservicefundwas$343 thousandasotherfundsreimbursed theDebtServicefundtoassistwithbondpayments.

Proprietary Funds - The City's proprietary funds provide the same type of information found in the government-widefinancial statements, butinmoredetail.

UnrestrictednetpositionoftheWaterandSewerfundandDrainagefundattheendoftheyearamountedto $10.2 million and $874 thousand, respectively. The total increase in net position for the Water and Sewer fund was $5.7 million and $2.0 million for the Drainage fund. The increase in Water & Sewer Fund net positionwasdueprimarilytoanincreaseinutilityrates.TheincreaseinDrainageFundnetpositionwasdue primarilytoanincreaseinutilityrates.

BUDGETARYHIGHLIGHTS

Over the courseoftheyear, theCityreviseditsGeneral Fundbudgetforatotal increase inexpenditures of $1.1million primarilytocompletecapitalprojectsrelatedtotheFireDepartment.TheCity’sGeneralFund was under budget within its revenue, but still experience anticipated reduction in revenue as License and Permitsrevenuewasaccountedforinanewnonmajorfund.

Over the course of theyear, theCity revisedits Grant Fund budget to recognizeARPA grant revenues and subsequent related expenditures. Thisincreasedbudget grantrevenueby$3.7millionandincreasedbudget expenditures by $3.7 million. The City was under budget in revenues and expenditures as ARPA capital outlayprojectsdidnot reachanticipatedlevels.

The Traffic Impact Fund budgeted for$740thousandin revenues, but exceeded this as development inthe City was higher than expected leading to higher than anticipated Impact Fees. Further, the City was under budgetby$4.3millionasStreetRepairswerelowerthananticipated.

The Debt Service fund budgeted for increased revenues and expenditures. Revenue was under budget as property values did not grow as anticipated, leading to lower than expected property taxes. Expenditures wereunderbudgetasinterestexpenditureswerelowerthananticipated.

CAPITALASSETANDDEBTADMINISTRATION

CapitalAssets-TheCity’sinvestmentincapitalassetsforitsgovernmentalandbusiness-typeactivitiesas of September 30, 2025 amounted to $160 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements, machinery and equipment, park facilities, and roads. TheCity’sinvestmentincapitalassetsforthecurrentfiscalyearincreasedby$10.3millionfromfiscalyear 2024, as they continued to work on road projects, expanded their vehicle fleet, and accepted infrastructure from developers.

TABLE A-3 CAPITALASSETS

(NetofDepreciation)

202520242025202420252024

Land4,776,842$4,636,842$1,396,208$1,396,208$6,173,050$6,033,050 $ WaterRights--475,000475,000475,000475,000 Buildings28,161,66027,450,742--28,161,66027,450,742 Transportation&Equipment14,601,15513,273,4883,669,0133,327,05718,270,16816,600,545 UtilityInfrastructure--57,323,43052,296,03757,323,43052,296,037 GovernmentalInfrastructure81,979,44272,607,975--81,979,44272,607,975

SubscriptionBased ITAgreements-873,806---873,806 ConstructioninProgress15,886,21716,972,79912,365,61511,342,31228,251,83228,315,111 AccumulatedDepreciation(47,031,551)(42,566,430)(13,280,586)(12,049,537)(60,312,137)(54,615,967)

TOTALS98,373,765$93,249,222$61,948,680$56,787,077$160,322,445$150,036,299 $

AdditionalinformationoftheCityofCibolo’scapitalassetscanbefoundinNote5,Page45,ofthisreport.

Long-TermDebt-ForthefiscalyearendedSeptember30,2025,theCitymadepaymentsof$6.6million on debtandissued$13.0millioninnewdebt. Atyear-end theCity had atotaldebt outstandingof$73.9 million.

TABLE A-4 LONG-TERM DEBT

202520242025202420252024

GeneralObligationBonds28,700,000$30,055,000$4,218,7705,269,01032,918,770$35,324,010 $ GeneralObligationBonds-PrivatelyPlaced--205,000405,000205,000405,000 PremiumsonLong-termDebt4,303,9073,977,584393,972449,2834,697,8794,426,867 CertificatesofObligation31,861,23022,345,273--31,861,23022,345,273 CertificatesofObligation-PrivatelyPlaced1,075,0001,205,000--1,075,0001,205,000 TaxAnticipationNotes1,095,0001,450,000--1,095,0001,450,000 RightofUseLeaseLiability1,918,0311,552,084141,644134,0892,059,6751,686,173 SubscriptionBasedITAgreements-248,237---248,237

TOTALS68,953,168$60,833,178$4,959,386$6,257,382$73,912,554$67,090,560 $

AdditionalinformationoftheCityofCibolo’slong-termdebtcanbefoundinNote6,Page46,ofthisreport.

ECONOMICFACTORSANDNEXT YEAR’SBUDGETS ANDRATES

Bond rating. For the City’s most recent publicsale ofbonds in 2025, Standard and Poor’s (S&P) Ratings Servicesassignedaratingof“AA+”,withastableoutlook.Thisratingisanupgradefromtheprevious“AA” rating. Thisupgradereflectsthecity’srapidtaxbaseandeconomicgrowthandstablefinances.The“AA+” rating allows the City to sell bonds at lower interest rates. The upgrade is a testament that the City is on soundeconomicfootingandhasimplementedplansandpoliciesthatwillhelppreparetheCityforthefuture. Creditfundamentalssupportingtheupgradeinclude:

 Thecity'slocationwithintheSanAntonio-NewBraunfelsmetropolitanarea,whichhashelpedfuel rapid tax base and population growth, and support significantly higher income metrics relative to countyandnationallevels.

 Generally positive operating performance, with planned capital spending generating the general fund draw downs in fiscal years 2022 and 2023, after available reserves had grown to more than double the city's fund balance policy minimum. Unaudited results for fiscal 2025 show a general fund surplus, andofficialsexpectbalancedresultsforfiscal2026.

 Available general fund reserves that are maintained inaccordance with the city's minimum policy of28%ofrecurringoperatingexpenditures,whichweexpectthecitywillcontinuetomaintain.The cityhastwoprivatelyplaceddebtobligationsoutstanding,butwehavereviewedthedocumentsand donotconsiderthemcontingentliquidityrisks.

 Budgeting practices that support consistently better-than-budgeted results, and regular budget monitoring via monthly budget-to-actual reporting provided to the council. The city maintains a five-year bond-funded capital improvement plan that is included in its annual budget, as well as a stand-alone general fund forecast that helps inform financial decision-making. It has also adopted investment,debtmanagement,andreservepolicies,andprovidesquarterlyinvestmentreportstothe council.Management hasimplementedpoliciesandpracticestohelpmitigatethecity'sexposureto cyber-security threats.

 Somewhat elevated fixed costs, which reflect the city's growth-related capital needs and rapid amortization. Although the city may issue $17 million of COs and $24 million of GO bonds over thenexttwoyears,wedonotexpectitsdebtandliabilitiesprofilewillsignificantlychange.Pension and other postemployment benefits (OPEBs) are not an immediate budgetary pressure given the adequatepensionfundingstatusandlimitedOPEBliability.

Local economy. The City of Cibolo is one of the fastest growing cities in the State. The strong military presence in the area contributes to our growth and job stability. Located 13 miles from downtown San Antonio along Interstate 35, Cibolo is an established residential suburb that offers easy access to leading employment centers throughout the San Antonio-New Braunfels MSA. With the high population growth, theCiboloeconomyhas becomeattractive for commercial developmentand continues toseenewbusiness interestand commercial activity.

Cibolo’s first major retail development project opened in January of 2016, stimulating Cibolo’s economy. Since 2016, many businesses have followed. These include quick service restaurants, casual dining, convenience stores, auto parts retailers, auto repair and maintenance services, medical, minor emergency, dental and orthodontic services, and childcare facilities. More recently, the northern part of the City along IH35, knownasCiboloCrossing,hasbeenunderdevelopment.

Beginning in mid-2019, Santikos Entertainment completed a major family entertainment complex. The entertainmentcomplexincludes12theaterswithluxuryrecliningseating,arcades,sportsbarand16bowling lanes. The complete 80-acre project, anchored by the entertainment complex, was a catalyst for the development of several family restaurants and other retail development. Magnolia Pancake Haus and Willie’s Grill and Ice House located in this area during fiscal year 2021. Living Spaces, a 140,000 square foot furnitureshowroom, alsoopenedin2021. DunkinDonuts,Parry’s Pizzeria andTaphouse,Salata also developed in this area and Dutch Bros opened itssecond Cibolo location here. Cibolo Crossing continues to see growth with current construction of an Olive Garden restaurant, and the future construction of Gringo’s MexicanKitchen,andSproutsFarmersMarket. Futureplansforthisareaincludedevelopmentof multi-familylivingspaceand amenities.

Cibolo’s downtown area also continues to generate interest. Old store fronts and renovated historic residentialhomes havebeenconvertedtonewbusinesseswhilekeepingthelookandfeelofthe“OldTown District”. Oneofthefirstnewbusinesses downtown, OldMainStreetIceHouse, has nowbeeninbusiness for several years and was the catalyst in this downtown area. Advanced Solar and Electric occupies the former1930’sgasstationandstillincludesreplicasoftheoriginal1930s-stylegaspumps. TheShopsatthe Mill,intheolddowntownlumbermill,openedinmid-2016witharenovatedstorefront,housesanicecream parlor and a boutique. 1908 House of Wine and Ale, Kindling Texas Kitchen, and Rooted Fork, all in renovatedcentury-oldhomes,servedinersinaquaint atmosphere.Downtownalsoincludes aneventcenter and office space, an early childhood learning center, a bakery and a cigar shop. Nearby, along F.M. 78, Mako’sontheCreek,anupscalerestaurant,votedoneoftheTopTenBestNewRestaurantsinSanAntonio, openedin2019.

On the City’s IH-10 border, Aisin AW Co., Ltd., a leading manufacturer of automobile transmissions completed construction of a 500,000 square foot production facility in the City of Cibolo. AW Texas expandedits facilitytodoubleitssizein2023.AWTexashas broughtover1000primaryjobstoCibolo.

In the town center, HEB developed 45 acres with approximately 110,000 square foot grocery store and 55,000 square foot E-commerce fulfillment center. The grocery store opened in early 2023 and the fulfillment center opened in mid-2024. The site also included plans for a 10-foot regional trail that will extendtheCity’s walkand bikesystem,andafishingpond.

NewretailbusinessesandserviceslocatinginourTownCenterin2025,includeCrustPizza,Andy’sFrozen Custard,andCreppecino.

Additionally, Cibolo is experiencing growth in multi-family residential construction. A senior living community, El Sereno, was completed in 2019 along Borgfeld Road and an assisted living facility, The Brooks, wascompletedin2021. TrophyOaks, anothermulti-familyproject, constructed just south ofF.M. 78throughpartnershipwiththeCiboloPublicFacilityCorporation(PFC),openedin2022.GrandatCibolo, a multi-family projectinthemiddle ofCibolowas completed in 2023. Most recently, USCiboloatCibolo Commons, a recent multi-family construction completed in 2024, boasts 12,000 square feet of resort-style amenityspaces.FutureplansincludeDoradoatCiboloCrossingalongIH35corridor,whichisinbeginning stageofdevelopment. Thisprojectisexpectedtostimulatefurtherretaildevelopmentalongthiscorridor.

Taxable values. The City’s total taxable assessed valuation for fiscal year 2026 of $3.7 billion, is approximately $98.4 million, or 2.6%, lower than the prior year. Overall taxable value of residential properties decreased by $225.1 million, or 7.4%. This was offset somewhat by growth in other areas. Multifamilyconstructionprojectsadded$28millioninvalue,industrialprojectsadded$39millionintaxable value, and continued expansion of commercial development resulted in an increase in taxable value of approximately $70.8million.

Tax rate. The tax rate adopted by the City Council for fiscal year 2026 is $0.5226 per $100 of assessed valuation.Thisrateisthecalculatedvoterapprovalrate,orthehighestrateallowablewithoutvoterapproval. Aportionoftheincreaseinthetaxrateisaresultofreducedtaxablevalueswhichrequiresahighertaxrate to bringinthesameamountoftaxrevenueas intheprioryear(ahighernonewrevenuerate) andtheneed to raise additional revenue to support city services. Historical values and tax rates are presented in the statisticalsectionofthisreport.

REQUESTSFORINFORMATION

This financial reportisdesignedtoprovideageneral overviewoftheCity’sfinancesforallthosewithan interestinthegovernment’sfinances. Questionsconcerninganyoftheinformationprovidedinthisreport or requests for additional information should be addressed to the Finance Director, City of Cibolo, 200 SouthMainStreet,Cibolo,Texas78108.

BASICFINANCIALSTATEMENTS

GovernmentalBusiness-TypeDevelopment ActivitiesActivitiesTotalCorporation ASSETS

CurrentAssets: CashandCashEquivalents: Unrestricted9,745,788$10,551,659$20,297,447$$ RestrictedforCustomerDeposits-1,008,7481,008,748Investments: Unrestricted11,567,6206,865,65518,433,2753,710,696 RestrictedInvestments-DebtService-878,849878,849RestrictedInvestments-CapitalImprovements15,850,3679,505,83125,356,198Receivables(netofallowances): Taxes1,816,851-1,816,851Other232,0412,574,8892,806,930DuefromOtherGovernments1,284,055-1,284,055227,200 InternalBalances(532,836)532,836-Dueto/fromPrimaryGovernment463,286-463,286(463,286) PrepaidExpenses45,276-45,276Inventories22,019156,372178,391TotalCurrentAssets

40,494,46732,074,83972,569,3063,474,610

NoncurrentAssets: CapitalAssets: Land4,776,8421,396,2086,173,0503,635,339 WaterRights-475,000475,000Buildings28,161,660-28,161,660Infrastructure81,979,44257,323,430139,302,872TransportationandEquipment14,601,1553,669,01318,270,16845,000 ConstructioninProgress15,886,21712,365,61528,251,832SubscriptionBasedITAgreements---Less:AccumulatedDepreciation(47,031,551)(13,280,586)(60,312,137)(21,375) TotalNoncurrentAssets: 98,373,76561,948,680160,322,4453,658,964

TOTALASSETS

DEFERREDOUTFLOWSOFRESOURCES

138,868,23294,023,519232,891,7517,133,574

LossonDebtRefunding172,099-172,099DeferredPensionRelatedOutflows2,672,397383,7493,056,146DeferredOPEBRelatedOutflows2,7093893,098DeferredOPEB-RetireeHealthRelatedOutflows133,48819,946153,434-

TOTALDEFERREDOUTFLOWS OFRESOURCES$2,980,693404,084$3,384,777$$

PrimaryGovernment

GovernmentalBusiness-TypeDevelopment ActivitiesActivitiesTotalCorporation

LIABILITIES

CurrentLiabilities:

AccountsPayable3,470,057$1,946,322$5,416,379$25,148 $ AccruedExpenses238,915-238,915AccruedInterestPayable619,55120,369639,92010,681 CurrentPortionofCompensatedAbsences553,12058,657611,777CurrentPortionofLong-TermDebt6,608,317962,6317,570,948258,000 CurrentPortionofTotalOPEBLiability21,9003,27225,172CurrentPortionofTotalOPEB-RetireeHealth22,1973,31725,514PayrollLiabilities1,253,097139,0101,392,107UnearnedRevenue1,161,781-1,161,781PayablefromRestrictedAssets:

CustomerDepositsPayable-1,008,7481,008,748TotalCurrentLiabilities 13,948,9354,142,32618,091,261293,829

NoncurrentLiabilities:

CompensatedAbsences1,290,613136,8661,427,479NetPensionLiability2,081,116298,8422,379,958TotalOPEBLiability206,33129,501235,832TotalOPEB-RetireeHealthLiability462,21769,067531,284Long-TermDebt62,344,8513,996,75566,341,6062,885,000

TotalNoncurrentLiabilities

DEFERREDINFLOWSOFRESOURCES

66,385,1284,531,03170,916,1592,885,000

GainonBondRefunding-267,702267,702DeferredPensionRelatedInflows1,476,010211,9511,687,961DeferredOPEBRelatedInflows59,9238,60568,528DeferredOPEB-RetireeHealthRelatedInflows679,958101,602781,560TOTALDEFERREDINFLOWS OFRESOURCES

NETPOSITION

2,215,891589,8602,805,751-

NetInvestmentInCapitalAssets42,392,76659,394,282101,787,048505,283 RestrictedFor: ImpactFees-13,874,80813,874,808Public,EducationalandGovernmental134,542-134,542PublicSafety221,472-221,472DebtService1,198,603858,4802,057,083StreetMaintenance1,545,874-1,545,874Tourism26,269-26,269TreeProject1,400-1,400YouthCouncil5,000-5,000EconomicDevelopment---3,449,462 Unrestricted13,773,04511,036,81624,809,861TOTALNETPOSITION

$59,298,97185,164,386$144,463,357$3,954,745 $

ProgramRevenues

OperatingCapital

ChargesforGrantsandGrantsand

FunctionsandProgramsExpensesServicesContributionsContributions

PrimaryGovernment: GovernmentalActivities: Administration6,665,084$-$2,616,549$2,252,629 $ PublicSafety5,606,851255,45665,163PublicWorks7,861,4382,819,103-InformationTechnologyOffice1,746,260-8,590ParksandRecreation2,449,924250,23120,000FireDepartment6,494,3026,61218,436AnimalControl499,30453,312-Interest2,135,098--TotalGovernmentalActivities33,458,2613,384,7142,728,7382,252,629

Business-TypeActivities

Water/WastewaterUtilities8,324,70015,053,225114,2413,023,265 Drainage1,412,7841,991,777-638,882 Garbage3,059,6193,556,211-Administration4,301,589--Interest69,046---

TotalBusiness-TypeActivities17,167,73820,601,213114,2413,662,147

TotalPrimaryGovernment$50,625,99923,985,927$2,842,979$5,914,776 $

ComponentUnit: CiboloEconomicDevelopment Corporation945,394$-$-$$

GeneralRevenues: Taxes: PropertyTaxes

SalesTaxes FranchiseTaxes

OccupancyTaxes

InvestmentEarnings

GainonSaleofAssets

Miscellaneous TotalGeneralRevenues

TransfersIn(Out)

ChangeinNetPosition

NetPositionatBeginningofYear

PriorPeriodAdjustment

NetPositionatEndofYear

Net(Expense)Revenueand ChangesinNetPosition

PrimaryGovernment

Component

Cibolo Economic GovernmentalBusiness-TypeDevelopment ActivitiesActivitiesTotalCorporation

$(1,795,906)-$(1,795,906)$$ (5,286,232)-(5,286,232)(5,042,335)-(5,042,335)(1,737,670)-(1,737,670)(2,179,693)-(2,179,693)(6,469,254)-(6,469,254)(445,992)-(445,992)(2,135,098)-(2,135,098)(25,092,180)-(25,092,180)-9,866,0319,866,031-1,217,8751,217,875-496,592496,592-(4,301,589)(4,301,589)-(69,046)(69,046)-7,209,8637,209,863(25,092,180)7,209,863(17,882,317)---(945,394) $ 18,110,464-18,110,4646,881,371-6,881,3711,358,803 1,459,675-1,459,6755,770-5,7701,650,9931,231,6212,882,614146,071 -116,848116,8482,391,80717,0212,408,82830,500,0801,365,49031,865,5701,504,874 387,908(387,908)-5,795,8088,187,44513,983,253559,480 54,072,61277,029,516131,102,1283,395,265 (569,449)(52,575)(622,024)$59,298,97185,164,386$144,463,357$3,954,745 $

Traffic GeneralGrantImpact FundFundFund

ASSETS

CashandCashEquivalents3,559,718$-$3,230,603 $ Investments4,018,585914,1282,393,045 AccountsReceivables(netofallowances): Taxes1,491,702-Other214,671-4,268 DuefromOtherGovernments90,38945,911DuefromComponentUnit456,649-PrepaidExpenditures20,0221,644Inventories22,019-DuefromOtherFunds735,989-235,147 TOTALASSETS

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

$10,609,744961,683$5,863,063 $

Liabilities: AccountsPayable534,35852,82130,460 AccruedExpenditures238,915-PayrollLiabilities1,226,827-DuetoOtherFunds1,146,554173,626UnearnedRevenues448,774690,6692,917

TotalLiabilities 3,595,428917,11633,377

DeferredInflowsofResources: UnavailableRevenues-Taxes122,275-TotalDeferredInflowsofResources122,275--

FundBalances: Nonspendable: Inventory22,019-PrepaidItems20,0221,644Restrictedfor: Public,EducationalandGovernmental--PublicSafety--DebtService--StreetMaintenance100,000-Tourism--CapitalProjects--TreeProject1,400-YouthCouncil5,000-CapitalImprovement--5,829,686 Committedfor: CapitalReplacement--PublicFacilities--Unassigned6,743,60042,923TotalFundBalances 6,892,04144,5675,829,686

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES

$10,609,744961,683$5,863,063 $

CapitalNonmajorTotal ProjectsDebtGovernmentalGovernmental FundServiceFundFundsFunds

$-1,706,735$1,248,732$9,745,788 $ 15,850,367-4,241,86227,417,987 -91,344233,8061,816,852 --13,102232,041 1,147,755--1,284,055 -6,637-463,286 --23,61045,276 ---22,019 28,50813,438372,9371,386,019

$17,026,6301,818,154$6,134,049$42,413,323 $ 2,399,354-453,064$3,470,057 $ ---238,915 --26,2701,253,097 478,844-119,8311,918,855 --19,4211,161,781 2,878,198-618,5868,042,705 -101,168-223,443 -101,168-223,443 ---22,019 --23,61045,276 --134,542134,542 --221,472221,472 -1,716,986-1,716,986 --1,445,8741,545,874 --26,26926,269 14,148,432--14,148,432 ---1,400 ---5,000 --1,093,9476,923,633 --64,28064,280 --2,536,0582,536,058 --(30,589)6,755,934 14,148,4321,716,9865,515,46334,147,175

$17,026,6301,818,154$6,134,049$42,413,323 $

CITY

RECONCILIATIONOFTHEGOVERNMENTALFUNDS

BALANCESHEETTOTHESTATEMENTOFNETPOSITION SEPTEMBER30,2025

TOTALFUNDBALANCE-TOTALGOVERNMENTALFUNDS34,147,175 $

AmountsreportedforgovernmentalactivitiesintheStatementofNetPosition aredifferentbecause:

CapitalAssetsusedingovernmentalactivitiesarenotfinancialresources and,therefore,arenotreportedinthefunds.98,373,765

Otherlong-termassetsarenotavailabletopayforcurrent-periodexpenditures and,therefore,arenotrecognizedasrevenueinthefunds.223,443

Accruedvacationleavepayableisnotdueandpayableinthecurrentperiod and,therefore,isnotreportedinthefunds.(1,843,733)

Long-termliabilities,includingbondspayable,relatedpremiums,financepurchases, rightofuseliabilities,andaccruedinterestarenotdueandpayableinthecurrent periodandtherefore,notreportedinthefunds:

BondsPayable(68,953,168)

LossonDebtRefunding172,099 AccruedInterestPayable(619,551)(69,400,620)

NetPensionLiabilities(andrelateddeferredinflowsandoutflowsof resources)donotconsumecurrentfinancialresourcesarenot reportedingovernmentalfunds:

NetPensionLiability(2,081,116) PensionRelatedDeferredInflows(1,476,010) PensionRelatedDeferredOutflows2,672,397(884,729)

OPEBLiabilities(andrelateddeferredinflowsandoutflowsof resources)donotconsumecurrentfinancialresourcesarenot reportedingovernmentalfunds:

OPEBLiability(228,231) OPEBRelatedDeferredInflows(59,923) OPEBRelatedDeferredOutflows2,709(285,445)

OPEB-RetireeHealthLiabilities(andrelateddeferredinflowsand outflowsofresources)donotconsumecurrentfinancialresources arenotreportedingovernmentalfunds:

OPEB-RetireeHealthLiability(484,414) OPEB-RetireeHealthRelatedDeferredInflows(679,958) OPEB-RetireeHealthRelatedDeferredOutflows133,488(1,030,884)

TOTALNETPOSITION-GOVERNMENTALACTIVITIES59,298,972 $

STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCES –GOVERNMENTALFUNDS

FOR THE YEAR ENDEDSEPTEMBER30, 2025

Traffic GeneralGrantImpact FundFundFund

REVENUES

PropertyTaxes11,588,454$-$$ SalesTaxes5,522,569-FranchiseTaxes1,430,214-OccupancyTaxes--LicensesandPermits145,975-FinesandForfeitures230,206-IntergovernmentalRevenues745,634-Grants-2,577,739Short-TermRentals119,302-InvestmentEarnings461,44988,351224,822 ImpactFees--796,572 Miscellaneous116,670-TOTALREVENUES20,360,4732,666,0901,021,394

EXPENDITURES

Current: Administration4,306,985875,761PublicSafety5,715,85574,052PublicWorks2,290,568-7,786 InformationTechnologyOffice1,613,8059,544ParksandRecreation1,067,0083,323FireDepartment5,703,19318,436AnimalControl434,983-CapitalOutlay 1,768,590660,795113,277 DebtService: Principal602,944-Interest84,030-TOTALEXPENDITURES23,587,9611,641,911121,063

Excess(Deficiency)ofRevenues Over(Under)Expenditures(3,227,488)1,024,179900,331

OTHERFINANCINGSOURCES(USES)

TransfersIn1,722,5905,054TransfersOut(45,054)(1,037,346)PremiumsonIssuanceofDebt--IssuanceofDebt968,892-SaleofCapitalAssets342,674--

TOTALOTHERFINANCING SOURCES(USES)2,989,102(1,032,292)-

NetChangeinFundBalance(238,386)(8,113)900,331

FundBalancesatBeginningofYear7,130,42752,6804,929,355

FundBalancesatEndofYear$6,892,04144,567$5,829,686 $

CapitalNonmajorTotal ProjectsDebtGovernmentalGovernmental FundServiceFundFundsFunds

$-6,464,037$-$18,052,491 $ --1,358,8026,881,371 --29,4611,459,675 --5,7705,770 --1,910,4372,056,412 --72,155302,361 1,147,755-5,2851,898,674 ---2,577,739 --14,857134,159 543,25290,922242,1991,650,995 ---796,572 -280,275104,697501,642 1,691,0076,835,2343,743,66336,317,861

--88,9675,271,713 48,809-26,3045,865,020 58,937-2,406,0284,763,319 ---1,623,349 6,250-87,3161,163,897 13,231--5,734,860 ---434,983 6,307,141-677,5069,527,309

-5,284,043-5,886,987 204,2022,017,552-2,305,784 6,638,5707,301,5953,286,12142,577,221

(4,947,563)(466,361)457,542(6,259,360)

40,373767,99340,0002,576,010 (249,507)-(856,195)(2,188,102) 750,692--750,692 12,960,000--13,928,892 ---342,674

13,501,558767,993(816,195)15,410,166 8,553,995301,632(358,653)9,150,806 5,594,4371,415,3545,874,11624,996,369

$14,148,4321,716,986$5,515,463$34,147,175 $

CITYOFCIBOLO

RECONCILIATIONOFTHESTATEMENTOFREVENUES, GOVERNMENTALFUNDS TOTHESTATEMENTOFACTIVITIES FOR THEYEARENDEDSEPTEMBER30,2025

NETCHANGEINFUNDBALANCES-GOVERNMENTALFUNDS9,150,806 $

AmountsreportedforgovernmentalactivitiesintheStatementofActivities aredifferentbecause:

Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthestatement ofactivitiesthecostofthoseassetsisallocatedovertheirestimatedusefullivesand reportedasdepreciationexpense.

CapitalOutlay11,799,936 DepreciationExpense(6,167,685)5,632,251

IntheStatementofActivities,onlythegainorlossonthedisposalofa capitalassetisreported,whereasinthegovernmentalfunds,theproceeds fromthesaleofincreasefinancialresources.Thus,thechangeinnetposition differsinfundbalancebythenetbookvalueofdisposedassets(507,708)

RevenuesintheStatementofActivitiesthatdonotprovidecurrentfinancialresources arenotreportedasrevenuesinthefunds.57,974

Theissuanceoflong-termdebt(e.g.bonds,financedpurchases)providescurrentfinancial resourcestogovernmentalfunds,whichtherepaymentoftheprincipaloflong-termdebt consumesthecurrentfinancialresourcesofgovernmentalfunds.Neithertransaction, however,hasanyaffectonnetposition.Thisamountistheneteffectofthesedifferences inthetreatmentoflong-termdebtandrelateditems.

IssuanceofDebt(14,679,584) PrincipalRepayments5,284,043 FinancedPurchases602,945 SubscriptionBasedITAgreements248,237 AmortizationofPremiums,Discounts,Losses373,277(8,171,082)

Governmentalfundsreportrequiredcontributionstoemployeepensions asexpenditures.However,intheStatementofActivitiesthecostof thepensionisrecordedbasedontheactuariallydeterminedcostofthe plan.Thisistheamountthatactuariallydeterminedpension expenseexceededcontributions.(24,874)

GovernmentalfundsreportrequiredcontributionstoOPEBasexpenditures. However,intheStatementofActivitiesthecostoftheexpenseisrecorded basedontheactuariallydeterminedcostoftheplan.Thisistheamount thatactuariallydeterminedOPEBexpenseexceededcontributions.(14,434)

GovernmentalfundsreportrequiredcontributionstoOPEB-RetireeHealthasexpenditures. However,intheStatementofActivitiesthecostoftheexpenseisrecordedbasedon theactuariallydeterminedcostoftheplan.Thisistheamountthatactuarially determinedOPEB-RetireeHealthexpensefellshortofcontributions.240,200

SomeexpensesreportedintheStatementofActivitiesdonotrequiretheuseof currentfinancialresourcesand,therefore,arenotreportedasexpendituresin governmentalfunds:

CompensatedAbsences(282,434) AccruedInterest(284,891)(567,325)

CHANGEINNETPOSITION-GOVERNMENTALACTIVITIES5,795,808 $

Business-TypeActivities

Total

WaterandDrainageNon-MajorBusiness-Type SewerFundFundFundsActivities

ASSETS

CurrentAssets: CashandCashEquivalents: Unrestricted3,817,002$164,699$6,569,958$10,551,659 $ RestrictedforCustomerDeposits1,008,748--1,008,748 Investments: Unrestricted6,151,260714,395-6,865,655 RestrictedforDebtService878,849--878,849 RestrictedforCapitalImprovement2,224,116-7,281,7159,505,831 Inventories156,372--156,372 DuefromOtherFunds311,19133,943196,400541,534 AccountsReceivable,NetofAllowance: CustomerAccounts2,363,915192,068-2,555,983 Receivables-Other14,638-4,26818,906

TotalCurrentAssets 16,926,0911,105,10514,052,34132,083,537

NoncurrentAssets: CapitalAssets: Land503,121893,087-1,396,208 WaterRights475,000--475,000 UtilityInfrastructure44,967,38812,356,042-57,323,430 TransportationandEquipment2,277,0651,391,948-3,669,013 ConstructioninProgress1,102,50811,263,107-12,365,615 Less:AccumulatedDepreciation(11,292,429)(1,988,157)-(13,280,586) TotalNoncurrentAssets 38,032,65323,916,027-61,948,680 TOTALASSETS 54,958,74425,021,13214,052,34194,032,217

DEFERREDOUTFLOWSOFRESOURCES

DeferredPensionRelatedOutflows252,016131,733-383,749 DeferredOPEBRelatedOutflows255134-389 DeferredOPEB-RetireeHealthRelatedOutflows13,8096,137-19,946 TOTALDEFERREDOUTFLOWS OFRESOURCES $266,080138,004$-$404,084 $

Business-TypeActivities

Total

WaterandDrainageNon-MajorBusiness-Type SewerFundFundsActivities

LIABILITIES

CurrentLiabilities:

AccountsPayable1,763,289$5,500$177,533$1,946,322 $ PayrollLiabilities88,03650,974-139,010

AccruedInterestPayable20,369--20,369

CurrentPortionofCompensatedAbsences38,15420,503-58,657 CurrentPortionofLong-TermDebt933,67328,958-962,631 CurrentPortionofTotalOPEBLiability2,1811,091-3,272 CurrentPortionofTotalOPEB-RetireeHealth2,2111,106-3,317 DuetoOtherFunds7,6981,000-8,698 PayablefromRestrictedAssets:

CustomerDepositsPayable1,008,748--1,008,748 TotalCurrentLiabilities

NoncurrentLiabilities:

3,864,359109,132177,5334,151,024

CompensatedAbsences89,02647,840-136,866 NetPensionLiability196,256102,586-298,842 TotalOPEBLiability19,34210,159-29,501 TotalOPEB-RetireeHealthLiability47,90121,166-69,067 Long-TermDebt3,960,94135,814-3,996,755

DEFERREDINFLOWSOFRESOURCES

GainonBondRefunding267,702--267,702 DeferredPensionRelatedInflows139,19372,758-211,951 DeferredOPEBRelatedInflows5,6512,954-8,605 DeferredOPEB-RetireeHealthRelatedInflows70,34031,262-101,602

TOTALDEFERREDINFLOWS OFRESOURCES 482,886106,974-589,860

NETPOSITION

NetInvestmentinCapitalAssets35,543,02723,851,255-59,394,282

Restrictedfor:

DebtService858,480--858,480 DrainageImpact--4,016,6284,016,628 WaterImpact--5,768,7295,768,729 SewerImpact--4,089,4514,089,451 Unrestricted10,162,606874,210-11,036,816

TOTALNETPOSITION

$46,564,11324,725,465$13,874,808$85,164,386 $

STATEMENTOFREVENUES,EXPENSES, ANDCHANGESINFUNDNETPOSITION PROPRIETARYFUNDS

FOR THEYEARENDEDSEPTEMBER30,2025

Business-TypeActivities

Total WaterandDrainageNon-MajorBusiness-Type SewerFundFundFundsActivities

OPERATINGREVENUES

MeteredWaterSales7,964,665$-$-$7,964,665 $ WastewaterSalesCharges5,542,787--5,542,787 GarbageFees3,556,211--3,556,211 DrainageFees-1,591,587-1,591,587 ConnectionandPlatting102,623--102,623 CustomerPenalties170,313--170,313 WaterAcquisitionFees816,465--816,465 ImpactFees--856,562856,562

TOTALOPERATINGREVENUES

OPERATINGEXPENSES

18,153,0641,591,587856,56220,601,213

GeneralandAdministrative4,301,58945,932-4,347,521 WaterSystem3,320,307--3,320,307 WastewaterSystem3,941,203-12,5453,953,748 GarbageSystem3,059,619--3,059,619 DrainageSystem-994,804185994,989 Depreciation1,050,645371,863-1,422,508

TOTALOPERATINGEXPENSES15,673,3631,412,59912,73017,098,692 OPERATINGINCOME(LOSS)2,479,701178,988843,8323,502,521

NONOPERATINGREVENUES(EXPENSES)

InvestmentEarnings599,91740,856590,8481,231,621 Grants114,241--114,241 ContributedCapital3,023,265638,882-3,662,147 InterestExpense(60,905)(8,141)-(69,046) GainonSaleofCapitalAssets19,85096,998-116,848 Miscellaneous14,6062,415-17,021

TOTALNONOPERATINGREVENUES(EXPENSES)3,710,974771,010590,8485,072,832 INCOMEBEFORECONTRIBUTIONSANDTRANSFERS6,190,675949,9981,434,6808,575,353

TRANSFERSANDCONTRIBUTIONS

TransfersIn854,6501,276,341-2,130,991 TransfersOut(1,324,983)(261,426)(932,490)(2,518,899) TOTALTRANSFERSANDCONTRIBUTIONS(470,333)1,014,915(932,490)(387,908) CHANGEINNETPOSITION5,720,3421,964,913502,1908,187,445 NETPOSITIONATBEGINNINGOFYEAR40,885,68622,771,21213,372,61877,029,516 PriorPeriodAdjustment(41,915)(10,660)-(52,575) NETPOSITIONATENDOFYEAR$46,564,11324,725,465$13,874,808$85,164,386 $

CITYOFCIBOLO STATEMENTOFCASHFLOWS-PROPRIETARYFUNDS FOR THEYEARENDEDSEPTEMBER30,2025

Business-TypeActivities

Total

WaterandDrainageNon-MajorBusiness-Type SewerFundFundFundsActivities

CashFlowsFromOperatingActivities: CashReceivedFromCustomers18,256,063$1,544,828$894,458$20,695,349 $ CashPaidtoSupplierforGoods&Services(12,337,021)(209,142)83,556(12,462,607) CashPaidforEmployeeSalariesandBenefits(1,533,907)(810,560)-(2,344,467) NetCashProvided(Used)by OperatingActivities

CashFlowsFromNonCapitalandRelated FinancingActivities:

4,385,135525,126978,0145,888,275

MiscellaneousNonCapital14,6062,415-17,021

NetCashProvided(Used)byNonCapital FinancingActivities 14,6062,415-17,021

CashFlowsFromCapitalandRelated FinancingActivities:

AcquisitionandConstructionofCapitalAssets(1,330,634)(1,568,144)-(2,898,778) ProceedsonSaleofCapitalAssets19,85096,998-116,848 InterestPaidonLong-TermDebt(60,905)(8,141)-(69,046) InterfundBorrowingsforProjects(849,862)(45,451)(178,151)(1,073,464) TransfersfromOtherFundsforProjects854,6501,276,341-2,130,991 TransferstoOtherFundsforProjects(1,324,983)(261,426)(932,490)(2,518,899) IssuanceofFinancedPurchases49,473--49,473 AmortizationofPremiums,Loss,andGainsonRefunding(55,311)--(55,311) PrincipalPaidonLong-TermDebt(813,522)(29,353)-(842,875)

NetCashProvided(Used)byCapitaland RelatedFinancingActivities

CashFlowsFromInvestingActivities:

(3,511,244)(539,176)(1,110,641)(5,161,061)

PurchaseofInvestments(2,208,519)(172,246)(1,011,021)(3,391,786) SalesofInvestments--348,827348,827 InterestandInvestmentEarnings599,91740,856590,8481,231,621 NetCashProvided(Used)by InvestingActivities

NetIncrease(Decrease)inCash andCashEquivalents

(1,608,602)(131,390)(71,346)(1,811,338)

(720,105)(143,025)(203,973)(1,067,103)

CashandCashEquivalentsatBeginningofYear: CashandCashEquivalents4,605,247$307,724$6,773,93111,686,902 RestrictedCashandCashEquivalents940,608--940,608 5,545,855307,7246,773,93112,627,510

CashandCashEquivalentsatEndofYear: CashandCashEquivalents3,817,002164,6996,569,95810,551,659 RestrictedCashandCashEquivalents1,008,748--1,008,748 $4,825,750164,699$6,569,958$11,560,407 $

SupplementalDisclosureofNon-CashFinancingActivities:

CapitalContributions3,023,265$638,882$-$3,662,147 $ InterestPaid695,561$-$-$695,561 $

CITYOFCIBOLO

OFCASHFLOWS

-

PROPRIETARYFUNDS (CONTINUED) FOR THEYEARENDEDSEPTEMBER30,2025

ReconciliationofOperatingIncome toNetCashProvided(Used)by OperatingActivities:

Total WaterandDrainageNon-MajorBusiness-Type SewerFundFundFundsActivities

OperatingIncome2,479,701

$ AdjustmentstoReconcileOperating Income(Loss)toNetCashProvided (Used)byOperatingActivities:

Depreciation1,050,645371,863-1,422,508 Decrease(Increase)inAssets: Inventories14,672--14,672 AccountsReceivable(net):

CustomerAccounts(70,013)(46,759)-(116,772) Other104,872-37,896142,768 DeferredPensionRelatedOutflows(71,021)(38,394)-(109,415) DeferredOPEBRelatedOutflows(1)(23)-(24) DeferredOPEB-RetireeHealthRelatedOutflows(105)(46)-(151) Increase(Decrease)inLiabilities: AccountsPayable700,734(20,895)36,160715,999 PayrollLiabilities10,14217,155-27,297 CustomerDeposits68,140--68,140 CompensatedAbsences30,63529,602-60,237 NetPensionLiability(49,676)(23,493)-(73,169) OPEBLiability(2,245)878-(1,367) OPEBLiability-RetireeHealth7,5053,335-10,840 DeferredPensionRelatedInflows124,47366,396-190,869 DeferredOPEBRelatedInflows834852-1,686 DeferredOPEB-RetireeHealthRelatedInflows(32,248)(14,333)-(46,581) NetCashProvided(Used)by OperatingActivities

NOTES TOBASICFINANCIALSTATEMENTS

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

TheCityofCibolo isamunicipalcorporationgovernedbyanelectedmayorand seven-member council. The financial statementsoftheCityanditsdiscretely presentedcomponentunithavebeenpreparedinconformity with generally accepted account principles (GAAP) asapplied to government units. The discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the City. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. Thesignificant accountingpoliciesoftheCity aredescribed below:

A. ReportingEntity

Component Unit – As required by general accepted accounting principles, these financial statements present the government and its component units for which the government is considered to be financial accountable. Blended component units, although legally separate entities are in substance, part of the government’s operation, thus data from these units would be combined with data of the primary government. Each discretely presented component unit is presented as a separate column in the government-wide financial statements to emphasize it as legally separate from the government. The followingis asummaryofthecomponent unit:

1. Cibolo Economic Development Corporation (CEDC) –AnonprofitCorporationorganized under the Development Corporation Act of 1979, Texas Revised Civil Statutes Annotated, Article 5190.6, Section 4A for the purpose of promoting economic development within the Community in order to eliminate unemployment and underemployment and to promote and encourage employment and publicwelfare of, for, and onbehalfof the City. Itreceives all proceeds from a .25$ sales tax adopted for economic development in the City of Cibolo and the City Council appoints director of theCorporation. The CEDC isa separate organization and meets the criteria of a discretely presented component unit, described above, and is presented in the governmentwide financial statements. Complete financial statement for the Cibolo Economic Development Corporation may be obtained from City Hall and are presented in the Other Supplementary Informationofthis reports.

2. Cibolo Public Facilities Corporation (CPFC) – A public facilities corporation organized under Chapter 303 of the Texas Local Government Code for the purpose of assisting the City in financing, refinancing, or providing public facilities. The CPFC was created to authorize the public/privatesectoragreementtoconstructamarketdriven324-unitmultifamilyhousingproject, Trophy Oaks Apartments. TheCPFC will ownthe land and the building and lease the use of the landandbuildingbacktothedeveloperina75-yearleaseagreement.TheCPFCwillworkclosely with thedeveloperoftheprojectandmonitortheprogress oftheproject.

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. ReportingEntity(Continued)

Joint Ventures – A joint venture is a legally separate entity that results from a contractual arrangement andthatisowned,operated,orgovernedbytwoormoreparticipatinggovernments.Thefollowingentities meet the criteria asjoint ventures. Separatefinancial statements for these entities may beobtainedatCity Hall.

1. CanyonRegionalWaterAuthority(CRWA)–was created bytheTexaslegislatureonAugust28, 1989,underArticleXVI,Section59oftheTexasConstitution.CRWAoperatesunderChapter65 oftheTexasWaterCode.CRWAwascreatedtopurchase,own,hold,lease,andotherwiseacquire sourcesofpotablewater;buildoperateandmaintainfacilitiesforthetreatment andtransportation of water; sellpotable waterto local governments, water supply corporationsand otherpersonsin this state; and to protect, preserve, and restore the purity and sanitary condition of water in the area.CRWAmaynotlevyorcollectadvaloremtaxes,butdoeshavethepowerofeminentdomain and may issue bonds. CRWA is comprised of eleven (11) member entities, and the governing board consists of two voting members from each entity. The member entities consist of City of Cibolo,CityofConverse,CityofLaVernia,CityofMarion,CountyLineSpecialUtilityDistrict, Crystal Clear Special Utility District, East Central Special Utility District, Green Valley Special Utility District, Martindale Water Supply Corporation, Maxwell Special Utility District, and SpringsHillSpecialUtilityDistrict.

2. Cibolo ValleyLocalGovernment Corporation–is a public, nonprofit corporationorganized July 28, 2011 to aid, assist, and act on behalf of the cities of Cibolo and Schertz in acquiring, constructing, maintaining, and operating a water utility system. The participating governments have an ongoing financial responsibility to fund the operation of the corporation through either purchaseofservicesorbysubsidizingtheoperations.

B. Government-Wideand FundFinancialStatements

Thegovernment-widefinancialstatementsincludethestatementofnetpositionandstatementofactivities. Government-widestatementsreportinformationonalloftheactivitiesoftheCity. Theeffectofinterfund transfershasbeenremovedfromthegovernment-widestatementsbutcontinuestobereflectedonthefund statements. Thevaluesofinterfundservicesprovidedandusedarenoteliminatedinthegovernment-wide financial statements, aseliminationofthosechargeswoulddistort thedirect costsreportedforthevarious functions. Governmental activities are supported mainly by taxes and intergovernmental revenues. Business-type activities are financed whole or in part by fees charged to external parties for goods and services. TheCityhasno fiduciaryfunds.

Thestatement ofactivitiesreflects thedegreetowhichthedirect expensesofagivenfunctionorsegment is offset by program revenues. Direct expenses of a given function or segment are offset by program revenues.Directexpensesarethosethatareclearlyidentifiablewithaspecificfunction.Programrevenues include (1)charges tocustomers orapplicantswhopurchase, useor directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included inprogramrevenuesarereportedasgeneral revenues.

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. Government-Wideand FundFinancialStatements (Continued)

Separatefundfinancialstatementsareprovidedforgovernmentalfundsandproprietaryfunds. Thegeneral fund and capitalprojectsfundmeet thecriteria asmajor governmental funds. The combined amountsfor all nonmajor funds are reflected in a single column in the fund balance sheet and statement of revenues, expenditures, and changes in fund balances. Detailed statements for nonmajor funds are presented within combiningandindividualfundstatements andschedules.

C. MeasurementFocus, BasisofAccounting,andFinancialStatementPresentation

The government-wide financial statements arereported usingtheeconomic resources measurement focus andtheaccrualbasisofaccounting. Thismeasurementfocusisalsousedfortheproprietaryfundfinancial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash revenue types, which have been accrued, revenue from the investments, intergovernmentalrevenueand charges forservices. Grants arerecognizedasrevenuewhen all applicableeligibilityrequirementsimposed bytheprovideraremet.

C. MeasurementFocus, BasisofAccounting,andFinancialStatementPresentation

The government-wide financial statements arereported usingtheeconomic resources measurement focus andtheaccrualbasisofaccounting. Thismeasurementfocusisalsousedfortheproprietaryfundfinancial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash revenue types, which have been accrued, revenue from the investments, intergovernmentalrevenueand charges forservices. Grants arerecognizedasrevenuewhen all applicableeligibilityrequirementsimposed bytheprovideraremet.

Revenuesareclassifiedasprogramrevenuesandgeneralrevenues. Programrevenuesinclude(1)charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. General revenues include all taxes, grants not restricted tospecificprograms andinvestmentearnings.

Governmental fund level financial statements are reported using the current financial resources measurementfocusandmodifiedaccrualbasisofaccounting.Revenuesarerecognizedassoonastheyare both measurable and available. Revenues are considered available when they are collectible within the current periodorsoonenoughthereaftertopayliabilitiesofthecurrentperiod. Measurableandavailable revenues include revenues expected to be received within 60 days after the fiscal year ends. Receivables which are measurable but not collectible within 60 days after the end of the fiscal period are reported as deferredinflowofresources.PropertytaxeswhichareleviedpriortoSeptember30,2024,andbecamedue October1,2024havebeenassessedtofinancethebudgetofthefiscalyearbeginningOctober1,2024and, accordingly, havebeenreflectedas deferredinflowofresourcesandtaxesreceivablein thefundfinancial statement atSeptember30, 2025.

Salestaxes,franchisetaxes,hotel/moteltaxes,andfeesassociatedwiththecurrentfiscalyearareconsidered to besusceptible toaccrual andsohave been recognized asrevenueinthecurrent fiscal period. Allother revenue items received by the government are considered to be measurable and available only when the cashis receivedbytheCity.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. MeasurementFocus, BasisofAccounting,andFinancialStatementPresentation(Continued)

Expendituresgenerallyarerecordedwhenafundliability isincurred; however, debt serviceexpenditures, aswellasexpendituresrelatedtocompensatedabsencesandclaimsandjudgments,arerecordedonlywhen theliabilityhas maturedandpaymentisdue.

Thegovernmentreportsthefollowingmajorgovernmentalfunds:

General Fund is the general operating fund of the City and is always classified as a major fund. The general fund is used to account for all financial resources except those required to be accounted for in another fund. Major revenue sources include property taxes, charges for services, intergovernmental revenuesandinvestmentofidlefunds.Primaryexpendituresareforgeneral administration,publicsafety, publicserviceand capitalacquisition.

GrantFundaccountsformajorgrant projectsandtheirassociatedrevenuesandexpenditures.

TrafficImpactFundaccountsfortrafficimpact feesandtheassociateexpendituresrelatedtotheimpact that developmentandconstructionhaveontheroadwaysandtransportationrouteswithintheCity.

Capital Projects Fund accounts for financial resources used and expended for the procurement and constructionoflonglivedassets.

DebtServiceFundaccountsforfinancial resources tobeusedforthepayment oflongterm debt.

Nonmajorgovernmentalfundsincludespecialrevenueand capitalprojectfunds.

Proprietary fund level financial statements are used to account for activities, which aresimilarto those foundintheprivatesector. Themeasurementfocusisupondeterminationofnetincome,financialposition andcashflows. TheCity’s proprietaryfundsareasfollow:

Water&SewerFundaccountsforthewater,sewer,andgarbageservicesprovidedtothecitizensthrough usercharges.

DrainageFundaccountsforthemaintenanceofdrainageinfrastructureoftheCitythroughusercharges.

Theproprietaryfundisaccountedforusingtheaccrualbasisofaccountingasfollows:

• Revenuesarerecognizedwhenearned, andexpenses arerecognizedwhenliabilitiesareincurred.

• Current-yearcontributions,administrativeexpenses andbenefit payments, whicharenotreceivedor paid until thesubsequentyear, areaccrued.

Proprietary funds distinguish operating revenues and expenses from non-operating. Operating revenues and expenses generally result from providing servicesand producing and delivering goods in connection with aproprietaryfund’sprincipal ongoingoperations.

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. CashandCashEquivalents

Forpurposesofthestatementofcashflows,theenterprisefund(waterandsewerfund)considersallhighly liquid investments with a maturity of three months or less, including cash in banks, cash on hand, and moneymarket accountstobecashequivalents.

E. Investments

State statutes authorize the City to invest in (a) obligations of the United States or its agencies and instrumentalities; (b) direct obligations of the State of Texas or its agencies; (c) other obligations, the principalandinterestofwhichareunconditionallyguaranteedorinsuredbytheStateofTexasortheUnited States; (d) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having receivedaratingofnotless thanAorits equivalent; (e)certificatesofdeposit bystateand national banks domiciled in this statethat are (i) guaranteed or insured by theFederal Deposit Insurance Corporation, or itssuccessor; or, (ii)securedbyobligationsthataredescribedby(a)-(d).Statutesallowinvestinginlocal government investment pools organized and rated in accordance with the Interlocal Cooperation Act, whoseassetsconsistexclusivelyoftheobligationsoftheUnitedStatesoritsagenciesandinstrumentalities andrepurchaseassessmentsinvolvingthosesameobligations.

Investments are stated at fair value (plus accrued interest) except for money market investments and participatinginterest-earninginvestmentcontracts(U.S,Treasuries)thathavearemainingmaturityattime of purchase of one year or less. Those investments are stated at amortized cost. Likewise, certificates of depositarestatedatamortizedcost.

F. Receivables

Property taxes are levied based on taxable value at January 1 prior to September 30 and become due October 1, 2024andpast due afterJanuary31,2025. Accordingly, receivables and revenues forproperty taxesarereflectedonthegovernment-widestatementbasedon thefullaccrual methodofaccounting.

Accounts receivable from other governments include amounts due from grantors for approved grants for specificprogramsand reimbursementsforservicesperformedbytheCity.Programgrants arerecordedas receivablesandrevenuesatthetimealleligibilityrequirementsestablishedbytheproviderhavebeenmet.

Reimbursementsforservicesperformedarerecordedas receivables andrevenueswhentheyareearnedin the government-wide statements. Included are fines and costs assessed by the court action and billable services for certain contracts. Revenues received in advance of the costs being incurred are recorded as deferred inflows of resources in the fund statements. Receivables are shown net of an allowance for uncollectibles.

G. Short-TermInter-fundReceivables/Payables

Duringthecourseofoperations,numeroustransactionsoccurbetweenindividualfundsforgoodsprovided or services rendered. These receivables and payables are classified as “due from other funds" or “due to other funds” on fund statements. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. Inventories andPrepaidItems

TheCityaccountsforinventoriesusingtheconsumptionmethod.Inventoriesconsistprimarilyofsupplies and arevalued at cost determined bythe average cost method. Certain payments tovendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid Items of governmental funds are recorded as expenditures when consumed ratherthanwhenpurchased.

I. Budget

AnoperatingbudgetisadoptedeachfiscalyearforallCitygovernmentalfunds. Thebudgetisadoptedon theGAAP basis ofaccounting.

J. RestrictedAssets

Certainenterprisefundrevenuesarecollectedforaspecificpurposebystatelawandcityordinancessuch as impact fees for infrastructure improvements and the purchase of future water rights. These funds are classifiedasrestrictedassetsonthestatementofnetpositionandbalancesheetbecausetheiruseislimited bylaw.

Deposits of water/sewer customers and performance bond deposits pending refund to the customer are consideredrestrictedassets.

K. Capital Assets

Capital assets, which include land, buildings and improvements, equipment, and infrastructure assets are reported in the applicable governmental or business type activities column in the government-wide financialstatements. Capitalassetssuchasequipmentaredefinedasassetswithacostof$5,000ormore. Infrastructure assetsincludecity-owned streets, sidewalks, curbsandbridges. Capitalassetsarerecorded at historical costs if purchased or constructed. Donated capital assets, donated works of art and capital assets received inaserviceconcessionarrangement arerecordedatestimatedacquisition valueatthedate ofdonation.

The cost of normal maintenanceand repairs that do not add to the value of the asset ormaterially extend assetslivesarenotcapitalized. Interesthasnotbeencapitalizedduringtheconstructionperiodonproperty plantand equipment.

Capital assetsaredepreciatedusingthestraight-linemethodoverthefollowingestimatedusefullives:

UsefulLives Asset(Years)

BuildingsandImprovements10-40 UtilitySystems50 TransportationandEquipment3-10

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

L. CompensatedAbsences

Vested or accumulated vacation leave, compensatory time, and sick leave (PTO) that is expected to be liquidated with expendable available resources is reported as an expenditure and fund liability of the governmental fund that will pay for it. The City is responsible for payment of vested or accumulated vacationleaveandcompensatory time. AmountsofvestedoraccumulatedPTOthatisnot expectedtobe liquidated with expendable available financial resources arereported in thegovernment widestatements. Vested or accumulated PTO of the enterprise fund is recorded as an expense and liability ofthat fund as thebenefitsaccruetoemployeesandaremorelikelythannottobetaken. AccumulatedPTOatSeptember 30, 2025 of $1,843,733 and $195,523 have been recorded in accrued liabilities of the government-wide statements and enterprise fund, respectively. Compensated absences are reported in the governmental funds only if it is more likely than not to be taken.. The general fund is the governmental fund that has typically beenusedinprioryearstoliquidatetheliabilityforcompensated absences.

M. DeferredInflows/OutflowsofResources

In addition to assets, the statement of financial position will sometimes report a separate section for deferredoutflowsofresources. Thisseparatefinancial statement element, deferred outflows of resources, represents a consumption of net assets that applies tofuture period(s) and sowill notbe recognized asan outflow of resources (expense/expenditure) until then. The City currently has pension and OPEB related deferredoutflowsofresources.

Deferred inflows of resources represent an acquisitionof net assets that applies to a future period and so will notbe recognized asan inflow ofresource(revenue) untilthat time. Unavailable revenueis reported onlyinthegovernmentalfundsbalancesheetunderamodifiedbasisofaccounting.Unavailablerevenues frompropertytaxaredeferredandrecognizedasaninflowofresourcesintheperiodtheamountsbecome available. TheCityalsohasOPEBrelateddeferredinflows.

N. Pensions

For purposes ofmeasuringthenetpension liability, deferred outflows ofresources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of theTexasMunicipalRetirementSystem(TMRS)andadditionsto/deductionfromTMRS’sFiduciaryNet Position have been determinedon thesame basisas they are reported by TMRS. For this purpose, plan contributionsarerecognizedintheperiodthatcompensationisreportedfortheemployee,whichiswhen contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordancewith thebenefit terms. Investments are reported at fairvalue. The general fundhas typically beenusedinprioryearstoliquidatepensionliabilities.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED) SEPTEMBER30,2025

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

O. OPEB Liability

For purposes of measuring the OPEB liability, deferred outflows of resources and deferred inflows of resourcesrelatedtopensions,andOPEBexpense,informationabouttheTotalOPEBLiabilityoftheTexas Municipal Retirement System (TMRS) and additions to/deduction from TMRS’s Total OPEB Liability have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributionsare recognizedintheperiod thatcompensationis reported fortheemployee, whichiswhen contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordancewith thebenefit terms. Thegeneralfundhas typicallybeenusedintheprioryearto liquidate OPEBliabilities.

P. Long-Term Obligations

Debt isdefinedasaliabilitythatarisesfromacontractual obligationto pay cash (orother assetsthatmay beusedinlieuofcash)inoneormorepaymentstosettleanamountthatisfixedatthedatethecontractual obligationisestablished. Forthispurpose,debtdoesnotincludeleases,except forcontracts reportedasa financedpurchaseoftheunderlyingasset,oraccountspayable. Inthecurrentyear,theCityadoptedanew GASB standard that establishes new note disclosure requirements for long-term debt, including direct borrowingsandplacement. SeeadditionaldetailinNote6.

Inthegovernment-widefinancial statements,long-termdebt andotherlong-termobligationsarereported as liabilities under governmental activities or proprietary fund type statement of net position. On new bondissues,bondpremiumanddiscountsaredeferredandamortizedoverthelifeofthetermoftherelated debt.

Inthefundfinancialstatements, governmentalfundtypesrecognizebondpremiumsanddiscountsduring the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, arereportedasdebt serviceexpenditures.

Q. Net Position

Net Position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowingusedfortheacquisition,constructionorimprovementsofthoseassets,andaddingbackunspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either throughtheenablinglegislationadoptedbytheCityorthroughexternal restrictionsimposedbycreditors, grantors, orlawsorregulationsofothergovernments. TheCityhaselectedtoappropriatenet positionof itsbusinesstypeactivity.Suchappropriationsreflecttheintendeduseofthenetposition.

R. FundBalanceClassificationPolicies

The City adopted Governmental Accounting Standards Board Statement Number 54 (GASB 54) Fund Balance Reporting and Governmental Fund Type Definitions. The statement provides guidancefor fund balancecategoriesandclassificationsandgovernmentalfundtypedefinitions.GASB54changedtheway welookatfundbalances,specificallyreportingwhatfundbalances,bymajorgovernmentalfundtype,are orarenot availableforpublicpurposes.

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. FundBalanceClassificationPolicies (Continued)

Five categories of fund balances were created and defined by GASB 54. These five categories are as follows:

• Restricted –Thesefundsaregovernedbyexternallyenforceablerestrictions.

• Non-spendable – These funds are not available for expenditures based on legal or contractual requirements. Anexamplemightbeinventoriesandprepaidexpenditures.

• Committed-Fundbalancesinthiscategoryarelimitedbythegovernment’shighestlevelofdecision making (in this case the City Council). Any changes of this designation must be done in the same mannerthatit wasimplemented. Forexample,iffundsarecommittedbyresolution, thecommitment couldonlybereleasedwithanotherresolution.

• Assigned – For funds to beassigned, there must be an intended use which can be established by the City Council or an official delegated by the Council, such as a City Manager or Finance Director. AssignedfundbalanceisdelegatedbytheCityCounciltotheCityManager.

• Unassigned - This classification is the default for all funds that do not fit into the other categories. The general fund is the only fund that reports a positive fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for a specific purposes, it maybenecessarytoreportanegativeunassignedfundbalancein thatparticularfund.

Restricted amounts are considered to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available. The City’s policy is to apply expenditures against non-spendable fund balance, restricted fund balance, committed fund balance, assignedfundbalanceandunassignedfundbalanceattheendofthefiscal year.

S. Inter-fundTransactions

Legallyauthorizedtransfersaretreatedasinter-fundtransfersandareincludedintheresultsofoperations ofbothgovernmental andproprietaryfunds.

T. OperatingRevenuesandExpenses

Operating revenues are those revenues that are generated directly from the primary activity of the enterprise. FortheCity,thoserevenuesarechargesforwaterandsewerservices. Operatingexpensesare necessary costs incurred to provide the service that is the primary activity. Revenues and expenses not meetingthesedefinitionsarereportedasnon-operating.

U. UseofEstimates

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 disclosureof contingent assets and liabilities at thedate of the financialstatements and the reported amounts of revenues and expenses duringthereporting period. Actual results coulddiffer from thoseestimates.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

V. NewAccountingPronouncement

As of October 1, 2024, the City implemented GASB Statement 101 related to compensated absences. Previously only compensated absences that were expected to be paid upon termination or retirement were recognizedasaliabilityonthestatementofnetposition.Now,compensatedabsencesthataremorelikelythan not tobepaidortakenastimeoffareincludedintheliability.Thechangeresultedinareductionof$569,449 and$52,575forthebeginningnetpositionofgovernmentalactivitiesandbusiness-typeactivities,respectively.

NOTE2--CASH,CASHEQUIVALENTSANDINVESTMENTS

A. Cash

AtSeptember30,2025,theCity's cashwasfullycollateralized.

B. Investments

The City is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt, implement, and publicizean investment policy. That policy must address thefollowing areas: (1) safety ofprincipalandliquidity,(2)portfoliodiversification,(3)allowableinvestments,(4)acceptablerisklevels, (5)expectedratesofreturn,(6)maximumallowablestatedmaturityofportfolioinvestments,(7)maximum averagedollar-weightedmaturityallowedbasedonthestatedmaturitydateoftheportfolio,(8)investment staffqualityandcapabilities, and(9)bidsolicitationpreferencesforcertificatesofdeposits.

TheActdeterminesthetypesofinvestmentswhichareallowablefortheCity. Theseinclude,withcertain restrictions, (1) obligationsofthe U.S. Treasury, U.S. agencies, and theState ofTexas, (2)certificates of deposit, (3) certain municipal securities, (4) securities lending program, (5) repurchase agreements, (6) bankers acceptances, (7) mutual funds, (8) investments pools, (9) guaranteed investment contracts, and (10)commercial paper.

TheCity’sinvestmentsatSeptember30,2025areasshownbelow:

NOTE2--CASH,CASHEQUIVALENTSANDINVESTMENTS(CONTINUED)

B. Investments (Continued)

QuotedPricesinSignificantSignificant ActiveMarketsforObservableUnobservable

Fair Value Measurement is measured by the City using the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair valueoftheasset.Level1inputsarequotedpricesintheactivemarketsforidenticalassets;Level2inputs aresignificantotherobservableinputs;Level3inputsaresignificantunobservableinputs. AlloftheCity's investmentscarried at fairvaluearevaluedusingquotedmarkets prices(Level1inputs).

C. Analysis ofSpecificDepositandInvestmentRisks

GASB Statement No. 40 requires a determination as to whether the City was exposed to the following specificinvestmentrisksatyearendandifso,thereportingofcertainrelateddisclosures:

Credit Risk. Credit risk isthe risk that an issuer or other counterparty to an investment will not fulfill its obligations. The ratings of securities by nationally recognized rating agencies are designed to give an indication of credit risk. City investment policy follows state guidelines. The City policy allows investments in certificates of deposit with banks in Texas, investments in U.S. Treasuries and Agencies, andinvestmentpoolsthatinvestinobligationsoftheUnitedStatesoritsagenciesandinstrumentalitiesto nameafew.

AtSeptember30, 2025, theCity'sinvestmentswereinTexPoolandTexCLASS, publicfundsinvestment pools where all securities held maintain a continuous rating of no lower than AAA or AAAm or an equivalentratingbyatleastonenationallyrecognizedratingservice.

Custodial Credit Risk. Deposits areexposed to custodial credit risk if they arenot covered by depository insuranceandthedepositsareuncollateralized,collateralizedwithsecuritiesheldbythepledgingfinancial institution, orcollateralizedwithsecuritiesheldbythepledgingfinancial institution’strustdepartment or agent butnotintheCity’sname.

At year end and per City policy all funds were in the City's name and collateralized with securities that maintain a continuous rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationallyrecognizedratingservice. TheCitywasnotexposedtocustodialcreditrisk.

Concentration of Credit Risk. This risk is the risk of loss attributed to the magnitude of a government’s investment in asingle issuer. AllCity funds areintheexternal investment poolas allowedbythe City’s investment policy, and the investment pool invests in hundreds of authorized securities that minimize concentrationsofcreditrisk. Atyearend,theCitywasnotexposedto concentrationofcredit risk.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

NOTE2--CASH,CASHEQUIVALENTSANDINVESTMENTS(CONTINUED)

C. Analysis ofSpecificDepositandInvestmentRisks(Continued)

Interest Rate Risk. This is the risk that changes in interest rates will adversely affect the fair value of an investment. At year end, the City was not exposed to interest rate risk due to investment in an external investmentpoolas authorizedbytheCity’sinvestmentpolicy.

Foreign Currency Risk. This is the risk that exchange rates will adversely affect the fair value of an investment. The City’s policy does not allow investment in foreign currency. At year end the City was not exposedtoforeigncurrencyrisk.

D. Investment Policy

The City’s general policy is to report money market investments and short-term participating interestearning investment contracts as amortized costandtoreport nonparticipatinginterest-earning investment contracts usingacost-basedmeasure. However,ifthefairvalueofaninvestmentissignificantlyaffected by the impairment of the credit standing of the issuer or by other factors, it is reported at fair value. All otherinvestmentsarereportedatfairvalueunless alegal contract exists whichguaranteesahighervalue. The term “short-term” refers to investments which have a remaining term of one year or less at time of purchase. The term “nonparticipating” means that the investment’s value does not vary with market interest rate changes. Nonnegotiable certificates of deposit are examples of nonparticipating interestearninginvestmentcontracts.

E. PublicFundsInvestmentPools

Public funds investment pools in Texas are established under the authority of the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and are subject to the provisions of the Public Funds Investment Act,Chapter2256oftheTexasGovernment Code.

In addition to other provisions of the Act designed to promote liquidity and safety of principal, the Act requires pools to:(1) haveanadvisoryboard composedofparticipantsinthepool and otherpersonswho do not have a business relationship with the pool and are qualified to advise the pool; (2) maintain a continuous rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally recognizedratingservice;and(3)maintainthefairvalueofitsunderlyinginvestmentportfoliowithinone halfofonepercent ofthevalueofitsshares.

NOTE3--RECEIVABLES

Receivables consist ofthefollowingasofSeptember30, 2025: Traffic ImpactDebtNonMajorWaterandDrainageNonMajor GeneralFundServiceFundFundsSewerFundFundFunds

Receivables:

Grants------Other208,4564,268-13,10214,638-4,268 GrossReceivables1,713,4044,26897,256246,9082,743,330224,1694,268

Less:Allowancefor Uncollectibles7,031-5,912-364,77732,101NetTotalReceivables1,706,373

NOTE4--PROPERTYTAXCALENDAR

The City’s property tax islevied and becomes collectible each October 1 based on theassessed values listed as of prior January 1, whichis the date alienattaches to all taxableproperty intheCity. Assessed values are established by theGuadalupeCounty AppraisalDistrict at 100% of estimated market value. Assessed values are reduced by lawful exemptions to arrive at taxable values. A revaluation of all property is required to be completedeveryfour(4)years. ThetotaltaxablevalueasofJanuary1,2024,uponwhichthefiscal2025levy wasbased, was$3,295,572,959(marketvaluelessexemptions).

The City is permitted by theConstitution of the State of Texas to levy taxes up to $2.50 per$100 of taxable assessedvaluationforallgovernmentalpurposes. Pursuant to adecisionoftheAttorneyGeneral oftheState of Texas, up to $1.50 per $100 of assessed valuation may be used for the payment of long-term debt. The combinedtaxratetofinancegeneralgovernmentalservices,includingthepaymentofprincipalandintereston long-term debt, for theyearended September 30, 2025 was $0.499per$100 of assessedvalue, whichmeans that theCityhas ataxmarginof$2.001foreach$100value.

Property taxesarerecordedasreceivables anddeferredinflowsofresourcesatthetimethetaxesareassessed. In governmental funds, revenues are recognized as the related ad valorem taxes are collected. Additional amountsestimatedtobecollectibleinthetimetobearesourceforpaymentofobligationsincurredduringthe fiscal year and therefore susceptible to accrual in accordance with generally accepted accounting principles have been recognized as revenue. In the governmentwide financial statements, the entirelevyis recognized asrevenue, net ofestimateduncollectibleamounts (ifany), atthelevydate.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED) SEPTEMBER30,2025

NOTE5--CAPITALASSETS

GovernmentalandBusiness-typecapitalasset activityfortheyearendedSeptember30,2025wasasfollows: BeginningDeletions&Ending BalanceAdditionsTransfersBalance

GovernmentalActivities:

CapitalAssets,NotBeingDepreciated: Land4,636,842$140,000$-$4,776,842 $ ConstructioninProgress16,972,7993,536,615(4,623,197)15,886,217

TotalCapitalAssetsNotBeingDepreciated21,609,6413,676,615(4,623,197)20,663,059

CapitalAssets,BeingDepreciated: Buildings27,450,742664,41246,50628,161,660 Infrastructure72,607,9754,843,4864,527,98181,979,442 TransportationandEquipment13,273,4882,615,423(1,287,756)14,601,155 SubscriptionBasedITAgreements873,806-(873,806)TotalCapitalAssetsBeingDepreciated114,206,0118,123,3212,412,925124,742,257

AccumulatedDepreciation:

Buildings(4,828,716)(771,407)-(5,600,123) Infrastructure(30,619,322)(3,918,652)-(34,537,974) TransportationandEquipment(6,614,202)(1,477,626)1,198,374(6,893,454) SubscriptionBasedITAgreements(504,190)-504,190TotalAccumulatedDepreciation(42,566,430)(6,167,685)1,702,564(47,031,551)

TotalCapitalAssetsBeingDepreciated,Net71,639,5811,955,6364,115,48977,710,706 GovernmentalActivitiesCapitalAssets,Net93,249,222$5,632,251$(507,708)$98,373,765 $ BeginningDeletions&Ending BalanceAdditionsTransfersBalance

Business-TypeActivities:

CapitalAssets,NotBeingDepreciated: Land1,396,208$-$-$1,396,208 $ WaterRights475,000--475,000 ConstructioninProgress11,342,3121,052,028(28,725)12,365,615 TotalAssetsNotBeingDepreciated13,213,5201,052,028(28,725)14,236,823

CapitalAssets,BeingDepreciated: Infrastructure52,296,0374,998,66828,72557,323,430 TransportationandEquipment3,327,057517,410(175,454)3,669,013

TotalCapitalAssetsBeingDepreciated55,623,0945,516,078(146,729)60,992,443

AccumulatedDepreciation: Infrastructure(10,271,514)(1,104,901)-(11,376,415) TransportationandEquipment(1,778,023)(317,607)191,459(1,904,171) TotalAccumulatedDepreciation(12,049,537)(1,422,508)191,459(13,280,586)

TotalCapitalAssetsBeingDepreciated,Net43,573,5574,093,57044,73047,711,857

Business-TypeActivitiesCapitalAssets,Net56,787,077$5,145,598$16,005$61,948,680 $

NOTE5--CAPITALASSETS (CONTINUED)

BeginningDeletions&Ending BalanceAdditionsTransfersBalance

ComponentUnit:

CapitalAssets,NotBeingDepreciated: Land3,635,339$-

AccumulatedDepreciation: TransportationandEquipment(16,875)(4,500)-(21,375)

TotalAccumulatedDepreciation(16,875)(4,500)-(21,375)

TotalCapitalAssetsBeingDepreciated,Net28,125(4,500)-23,625

ComponentUnitCapitalAssets,Net3,663,464$(4,500)$-$3,658,964 $

Depreciation expensewaschargedtothegovernmentalfunctionsas follows:

GovernmentalActivities: Planning&Engineering17,415 $ PublicWorks3,485,686

Administration465,142 PublicSafety505,296 FireDepartment718,398 AnimalControl55,376

Parks&Recreation905,892 *EconomicDevelopment14,480

TotalDepreciationExpense-GovernmentalActivities

$6,167,685

*EconomicDevelopmentCorporationdepreciationaboveisheldbytheAdministrationinsupportof theEDConthefaceofthefinancialstatements

Business-TypeActivities: DrainageSystem371,863 $ WaterandSewerSystem1,050,645

TotalDepreciationExpense-BusinessTypeActivities

NOTE6--LONG-TERMDEBT

$1,422,508

The City issues a variety of long-term debt instruments in order to acquire and/or construct major capital facilities and equipment for governmental activities. These instruments include general obligation bonds, certificatesofobligation,taxnotes,andrightofuseleases. Thesedebtobligationsaresecuredbyeitherfuture property taxrevenueorliensonproperty andequipment.

In February 2025, theCity issued $10,995,000 City of Cibolo Texas, Certificates of Obligation, Series 2025 and $1,965,000 City of Cibolo Texas, General Obligation Bonds, Series 2025, both with interest rates of 45%. The intent of these issuances is to finance street repairs, public works and safety vehicles, acquire and improverealandpersonal propertyoftheparkssystem.

NOTE6--LONG-TERMDEBT(CONTINUED)

Long-term debt and obligations payable at September 30, 2025 were comprised of the following individual issues: IssueAmountMaturityRateBalance

PrimaryGovernment GovernmentalActivities:

GeneralObligationBonds

2014Series2,875,000$20312%-3.5%960,000 $ 2015Series3,770,00020353%-4%2,235,000 2015Series,Refunding3,995,00020273%-4%1,135,000 2016Series3,455,00020302%-3%2,105,000 2018Series3,490,00020363%-5%1,980,000 2019Series9,680,00020393.5%-5%7,925,000 2019Series,Refunding5,000,00020312%-5%2,895,000 2021Series11,245,00020331%-4%7,500,000 2025Series1,965,00020454%-5%1,965,000

CertificatesofObligation

2017Series2,000,00020323.85%1,075,000 2019Series4,505,00020393%-5%4,326,230 2020Series6,950,00020302%-3%4,780,000 2023Series4,550,00020434%-5%3,860,000 2024Series8,485,00020444%-5%7,900,000 2025Series10,995,00020454%-5%10,995,000

TaxNotes,Series20222,250,00020281.68%1,095,000

TotalGovernmentalLong-TermObligations

BusinessType: RevenueBonds

$62,731,230

2006Series3,000,000$20264.07%205,000 $ 2019Series1,355,00020393%-5%1,118,770 2021Series,Refunding4,195,00020321.5%-4%2,720,000

GeneralObligationBonds 2015Series,Refunding1,350,00020273%-4%380,000

TotalBusiness-TypeLong-TermObligations

ComponentUnit

EconomicDevelopmentCorporation: RevenueBonds

$4,423,770

2021Series4,125,000$20362.00%3,143,000 $

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE6--LONG-TERMDEBT(CONTINUED)

Changesinlong-termdebtfortheyearendingSeptember30, 2025areasfollows: BalanceBalanceDueWithin 9/30/2024AdditionsReductions9/30/2025OneYear

GovernmentalActivities:

GeneralObligationBonds30,055,000$1,965,000$(3,320,000)$28,700,000$3,465,000 $ BondPremiums3,977,584750,692(424,369)4,303,907428,942 CertificatesofObligation22,345,27310,995,000(1,479,043)31,861,2301,590,414 CertificatesofObligation-PrivatelyPlaced1,205,000-(130,000)1,075,000135,000 TaxAnticipationNotes1,450,000-(355,000)1,095,000360,000 RightofUseLeaseLiability1,552,084968,892(602,945)1,918,031628,961 SubscriptionBasedITAgreements248,237-(248,237)-NetPensionLiability2,775,45324,874(719,211)2,081,116TotalOPEBLiability-SDBF227,35714,432(13,558)228,23121,900 TotalOPEBLiability-RetireeHealth411,871240,199(167,656)484,41422,197 CompensatedAbsences*1,561,299282,434-1,843,733553,120 TotalGovernmentalActivities$65,809,15815,241,523

Business-TypeActivities:

GeneralObligationBonds4,819,727$-$(600,957)$4,218,770$639,586 $ GeneralObligationBonds-PrivatelyPlaced405,000-(200,000)205,000205,000 BondPremiums449,283-(55,311)393,97255,311 RightofUseLeaseLiability134,08949,473(41,918)141,64462,734 NetPensionLiability372,0118,285(81,454)298,842TotalOPEBLiability-SDBF34,1403,120(4,487)32,7733,272 TotalOPEBLiability-RetireeHealth61,54435,891(25,051)72,3843,317 CompensatedAbsences*135,28660,237-195,52358,657

TotalBusiness-TypeActivities$6,411,080157,006$(1,009,178)

*Compensated Absences are shown net of change, and restated for prior period adjustment

Compensated absences, net pension liability and other postemployment benefit obligations for governmental activitiesaregenerallyliquidatedbythegeneralfund.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE6--LONG-TERMDEBT(CONTINUED)

The annual requirements to amortize all long-term debt and obligations outstanding, excluding compensated absencesandbondpremium,as ofSeptember30, 2025,includinginterestpayments, areasfollows:

YearEnding

PublicOfferings GovernmentalActivitiesComponentUnit

Business-TypeActivities

September30,PrincipalInterestPrincipalInterestPrincipalInterest

20265,415,414$2,402,731$639,586$118,042$258,000$64,085 $ 20275,941,3051,833,624648,695101,022263,00058,825 20285,668,2231,801,425471,77788,035268,00053,463 20295,575,1411,626,750479,85978,387274,00047,998 20304,647,0591,451,019497,94159,131279,00042,411 2031-203515,897,1475,083,2571,102,85393,7851,485,000124,277 2036-204011,881,9402,382,128378,06023,084316,0006,443 2041-20456,630,000625,800----

Total61,656,229$17,206,734$4,218,771$561,486$3,143,000$397,502 $

YearEnding

PrivatePlacement GovernmentalActivitiesBusiness-TypeActivities

September30,PrincipalInterestPrincipalInterest

2025135,000$38,789$205,000$4,172 $ 2026140,00033,495-2027150,00027,913-2028155,00022,041-2029160,00015,978-2030-2032335,00012,994--

Total1,075,000$151,210$205,000$4,172 $

NOTE7--FINANCEDPURCHASES

The City has entered into lease agreements to finance equipment. The lease agreements qualify as financed purchases for accounting purposes, and, therefore, have been recorded at the present value of the future minimumpaymentsattheinceptiondate.Theassetsacquiredthroughfinancedpurchases areasfollows:

Governmental Activities Business-Type Activities

TransportationEquipment4,358,816$404,458 $ Less:AccumulatedDepreciation(2,080,674)(263,075)

Total2,278,142$141,383 $

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE7--FINANCEDPURCHASES(CONTINUED)

Futureminimum obligations (direct borrowings) and the net present value of these minimum payments asof September30,2025areasfollows: YearEndingSeptember30,PrincipalInterestPrincipalInterest 2026628,96176,67062,7345,090 2027584,16575,37941,7234,489 2028431,92161,63417,8603,047 2029246,56438,75214,8752,569 203026,4204,8614,452806

Total1,918,031$257,296$141,644$16,001 $

NOTE8--PENSIONPLAN

TexasMunicipalRetirementSystem

A. PlanDescription

The City participates as one of 938 plans in thenontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, TexasGovernmentCode(theTMRSAct)asanagentmultiple-employerretirement systemformunicipal employeesintheStateofTexas.TheTMRSActplacesthegeneraladministrationandmanagementofthe Systemwithasix-memberBoardofTrustees. AlthoughtheGovernor,withtheadviceandconsentofthe Senate,appointstheBoard,TMRSisnotfiscallydependentontheStateofTexas. TMRS'sdefinedbenefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available Annual Comprehensive Financial Report (ACFR) that can be obtained at www.tmrs.com

All eligibleemployeesoftheCityarerequiredtoparticipateinTMRS.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE8--PENSIONPLAN(CONTINUED)

TexasMunicipalRetirementSystem(Continued)

B. BenefitsProvided

TMRSprovidesretirement,disability,anddeathbenefits.Benefitprovisionsareadoptedbythegoverning bodyoftheCity,withintheoptionsavailableinthestatestatutesgoverningTMRS.

Atretirement,thebenefitiscalculatedasifthesumoftheemployee’scontributions,withinterest,andthe City-financed monetary credits with interest wereused to purchase an annuity. Members may choose to receive their retirement benefit inone ofseven payments options. Membersmay alsochoosetoreceive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, whichcannot exceed 75%ofthemember'sdeposits andinterest.

AttheDecember31,2024valuationandmeasurementdate,thefollowingemployeeswerecoveredbythe benefit terms:

InactiveEmployeesorBeneficiariesCurrentlyReceivingBenefits60 InactiveEmployeesEntitledtobutNotYetReceivingBenefits141 ActiveEmployees178 379

C. Contributions

Thecontributionrates foremployeesinTMRSareeither5%, 6%, or7%ofemployeegrossearnings, and the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body oftheCity.UnderthestatelawgoverningTMRS,thecontributionrateforeachcityisdeterminedannually bytheactuary,usingtheEntryAgeNormal(EAN)actuarialcostmethod. Theactuariallydeterminedrate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with anadditionalamounttofinanceany unfundedaccruedliability.

EmployeesfortheCitywererequiredtocontribute7%oftheirannualgrossearningsduringcalendaryear 2024. The contribution rates for the City were 12.75% and 13.80% for calendar years 2024 and 2025 respectively. The City's contributions to TMRS for the year ended September 30, 2025 were $1,887,602 andwereequal totherequiredcontributions.

D. Net PensionLiability

The City’s Net Pension Liability (NPL) was measured as of December 31, 2024, and the Total Pension Liability(TPL)usedtocalculatetheNetPension Liability wasdeterminedbyanactuarialvaluationasof that date.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED) SEPTEMBER30,2025

NOTE8--PENSIONPLAN(CONTINUED)

TexasMunicipalRetirementSystem(Continued)

E. ActuarialAssumptions

The Total Pension Liability in the December 31, 2024 actuarial valuation was determined using the followingactuarial assumptions:

Inflation 2.5%peryear

Overall PayrollGrowth 2.75%peryear

Investment RateofReturn 6.75%,net ofpensionplaninvestmentexpense, includinginflation

Salaryincreaseswerebasedonaservice-relatedtable.Mortalityratesforactivemembersarebasedonthe PUB(10)mortalitytableswiththePublicSafetytableusedformalesandtheGeneralEmployeetableused for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees of Texas mortality tables. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by Scale MP-2021 to account for future mortality improvements. Fordisabledannuitants,thesamemortalitytablesforhealthyretireesisusedwitha4-yearset-forwardfor males and a 3-year set-forward for females. In addition, a 3.5% and 3.0% minimum mortality rate is applied, formales andfemales respectively, to reflect the impairmentfor youngermembers whobecome disabled. The rates are projected on a fully generational basis by Scale MP-2021 to account for future mortalityimprovementssubject tothefloor.

The actuarial assumptions were developed primarily from theactuarial investigationof theexperience of TMRS over the period ending December 31, 2022. They were adopted in 2023 and first used in the December 31, 2023 actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based ontheMortality ExperienceInvestigation Study covering 2009 through 2011 and datedDecember31,2013.Planassetsaremanagedonatotalreturnbasiswithanemphasisonbothcapital appreciation as well as the production ofincome inorderto satisfythe short-term and long-term funding needsofTMRS.

Thelong-termexpectedrateofreturnonpensionplaninvestmentswasdeterminedusingabuilding-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pensionplaninvestmentexpenseandinflation)aredevelopedforeachmajorassetclass. Theserangesare combined to produce the long-term expected rate of return by weightingthe expected future real rates of returnbythetargetassetallocationpercentageandbyaddingexpectedinflation. Indeterminingtheirbest estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on thearea between (1) arithmetic mean (aggressive) without an adjustment for time(conservative)and(2)thegeometricmean(conservative)with anadjustmentfortime(aggressive).

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE8--PENSIONPLAN(CONTINUED)

TexasMunicipalRetirementSystem(Continued)

E. ActuarialAssumptions(Continued)

The target allocation and best estimates of real rates of return for each major asset class are summarized in thefollowingtable:

Long-Term ExpectedReal RateofReturn

AssetClassTargetAllocation(Arithmetic)

F. DiscountRate

The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows usedtodeterminethediscountrateassumedthatemployeeandemployercontributionswillbemadeatthe ratesspecifiedinstatute.Basedonthatassumption,thepensionplan'sFiduciaryNetPositionwasprojected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, thelong-termexpectedrateofreturnon pensionplaninvestmentswasappliedtoallperiods of projected benefit paymentstodeterminetheTotalPensionLiability.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE8--PENSIONPLAN(CONTINUED)

TexasMunicipalRetirementSystem(Continued)

G. ChangesinNetPensionLiability(Asset)

ChangesinNetPensionLiability: TotalPensionPlanFiduciaryNetPension LiabilityNetPositionLiability

BalanceatDecember31,202327,114,182$23,966,718$3,147,464 $ Changesfortheyear: ServiceCost2,455,363-2,455,363 Interest1,885,045-1,885,045 ChangeofBenefitTerms--DifferenceBetweenExpectedand ActualExperience(67,776)-(67,776) ChangesofAssumptions--Contributions-Employer-1,648,546(1,648,546) Contributions-Employee-905,084(905,084) NetInvestmentIncome-2,502,850(2,502,850) BenefitPayments,IncludingRefunds ofEmployeeContributions(830,556)(830,556)AdministrativeExpense-(15,971)15,971 OtherChanges-(371)371 NetChanges3,442,0764,209,582(767,506)

BalanceatDecember31,202430,556,258$28,176,300$2,379,958 $

Sensitivityofthenetpensionliabilitytochangesinthediscountrate.

ThefollowingpresentsthenetpensionliabilityoftheCity,calculatedusingthediscountrateof6.75%,as well as what theCity’s net pension liabilitywouldbe if it werecalculated using adiscount ratethat is 1percentage-point lower(5.75%)or1-percentage-pointhigher(7.75%)thanthecurrent rate:

DiscountRateDiscountRateDiscountRate 5.75%6.75%7.75%

NetPensionLiability(Asset)7,628,111$2,379,958$(1,796,855) $

H. PensionPlan FiduciaryNetPosition

Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued TMRSfinancialreport.That reportmaybeobtainedontheInternet at www.tmrs.com.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE8--PENSIONPLAN(CONTINUED)

TexasMunicipalRetirementSystem(Continued)

I. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

FortheyearendedSeptember30, 2025,theCityrecognizedpensionexpenseof$1,920,763.

AtSeptember30,2025,theCityreporteddeferredoutflowsofresourcesanddeferredinflowsofresources related topensionsfromthefollowingsources:

DeferredOutflows&Inflows:

DeferredDeferred OutflowsofInflowsof ResourcesResources DifferencesbetweenExpectedand ActualEconomicExperience478,434$58,056 $ ChangesinActuarialAssumptions-116,654 DifferencesBetweenProjectedand ActualInvestmentEarnings1,152,5201,513,251 ContributionsSubsequenttothe MeasurementDate1,425,192$3,056,1461,687,961 $

The City reported $1,425,192 as deferred outflows of resources related to pensions resulting from contributionssubsequenttothemeasurement date(December31, 2024)willberecognizedasareduction of the net pension liability in the subsequent fiscal year rather than in the current fiscal period. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pensionexpenseasfollows:

FutureYearsPensionExpense:

FortheYearEndedDecember31, 2025165,944 $ 2026322,339 2027(358,305) 2028(186,985) Thereafter$(57,007)

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFITS (OPEB)

TMRS Supplemental Death Benefits Other Post employment Benefit

TheCityalsoparticipatesinthecostsharingmultiple-employerdefinedbenefitgroup-termlifeinsuranceplan operatedbytheTexasMunicipalRetirementSystem(TMRS)knownastheSupplementalDeathBenefitsFund (SDBF). The City elected, by ordinance, to provide group-term life insurance coverage to both current and retired employees. The City may terminate coverage under and discontinue participation in the SDBF by adoptinganordinancebeforeNovember1ofanyyeartobeeffectivethefollowing January1.

The plan is part of the Annual Comprehensive Financial Report (ACFR) issued by TMRS and available at www.tmrs.com.

Thedeathbenefitforactiveemployeesprovides alump-sumpayment approximatelyequal totheemployee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the monthofdeath);retiredemployeesareinsuredfor$7,500;thiscoverageisan“otherpost-employmentbenefit,” orOPEB. MembershipintheplanatDecember31,2024,thevaluationandmeasurement date, consistedof:

InactiveEmployeesorBeneficiariesCurrentlyReceivingBenefits43 InactiveEmployeesEntitledtobutNotYetReceivingBenefits24 ActiveEmployees178 245

TheSDBFrequiredcontributionrates, basedontheseassumptions,areasfollows:

TotalSDBFRetireePortiontoSDBF FortheCalendarYearEndedDecember31,ContributionRateContributionRate

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED) SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

TMRS Supplemental Death Benefits Other Post employment Benefit (Continued)

These contribution rates are based on actuarial assumptions developed primarily from the actuarial investigationoftheexperienceofTMRS overthefour-yearperiodfrom December31, 2014toDecember31, 2018. Theywereadoptedin2019and first usedintheDecember31, 2019actuarialvaluation.Forcalculating the OPEB Liability and OPEB contribution rates, the Gender-distinct 2019 Municipal Retirees of Texas mortality tables were used. The ratesareprojected onafullygenerational basisbyScale UMPtoaccount for future mortality improvements. Based on the size of the city, rates are multiplied by an additional factor of 100.0%.

Theseassumptionsaresummarizedbelow:

AdministrativeExpenses

MortalityRates-ServiceRetirees

MortalityRates-DisabledRetirees

AlladministrativeexpensesarepaidthroughthePensionTrustand accountedforunderreportingrequirementsunderGASBStatementNo. 68.

2019MunicipalRetireesofTexasMortalityTables.Malerates multipliedby103%andfemaleratesaremultipliedby105%.Therates areprojectedonafullygenerationalbasisbythemostrecentScaleMP2021(withimmediateconvergence).

2019MunicipalRetireesofTexasMortalityTableswitha4yearsetforwardformalesand3yearsetforwardforfemales.Inaddition,a 3.5%and3%minimummortalityratewillbeappliedtoreflectthe impairmentforyoungermemberswhobecomedisabledformalesand females,respectively.Theratesareprojectedonafullygenerational basisbythemostrecentScaleMP-2021(withimmediateconvergence) toaccountforfuturemortalityimprovementssubjecttothefloor.

OtherInformation:Noassetsareaccumulatedinatrustthatmeetsthecriteria inparagraph4ofStatementNo.75topayrelatedbenefits.

Note:AsofDecember31,2024,thediscountrateusedinthe developmentoftheTotalOPEBliabilitywas4.08%compared to3.77%usedasofDecember31,2023.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

TMRS Supplemental Death Benefits Other Post employment Benefit (Continued)

The City’s Total OPEB Liability (TOL), based on the above actuarial factors, as of December 31, 2024 was calculatedasfollows:

TotalOPEB Liability

BalanceatDecember31,2023261,497 $ Changesfortheyear:

ServiceCost21,981

Interest10,200

ChangeofBenefitTerms-

DifferenceBetweenExpectedand ActualExperience(12,379) ChangesofAssumptionsorOtherInputs(16,416) BenefitPayments(3,879) NetChanges(493)

BalanceatDecember31,2024261,004 $

There is no separate trust maintained to fund this Total OPEB Liability. No assets are accumulated in a trust that meetsthecriteriainparagraph4ofGASBStatementNo.75topayrelatedbenefits.

The following presents the TOL of the City, calculated using the discount rate of 4.08% as well as what the City’s TOL would be ifit werecalculated using adiscount ratethat is 1-percentage point lower (3.08%) and 1-percentagepointhigher(5.08%)thanthecurrent rate: DiscountRateDiscountRateDiscountRate 3.08%4.08%5.08%

TotalOPEBLiability319,931$261,004$216,201 $

FortheyearendedSeptember30,2025,theCityrecognizedOPEBexpenseof$18,913.AlsoasofSeptember 30, 2025, theCityreported deferred outflowsofresources and deferred inflowsofresources related toOPEB from thefollowingsources:

DeferredOutflows&Inflows:

DeferredDeferred OutflowsofInflowsof ResourcesResources

DifferenceBetweenExpectedand-$8,347 $ ActualExperience

ChangesinActuarialAssumptions-60,181 ContributionsSubsequenttothe MeasurementDate3,098$3,09868,528 $

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

TMRS Supplemental Death Benefits Other Post employment Benefit (Continued)

Deferredoutflowsofresourcesintheamountof$3,098isrelatedtoOPEBbenefitsresultingfromcontributions subsequent to the measurement date and will be recognized as a reduction of the total OPEB liability in the subsequent fiscalyearratherthaninthecurrent fiscalperiod.

Otheramounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expenseasfollows:

FutureYearsPensionExpense:

FortheYearEndedDecember31, 2025(11,859) $ 2026(13,932) 2027(18,421) 2028(18,561) 2029(2,100) Thereafter(3,655) $(68,528)

City of Cibolo Retiree Health Insurance Other Post-employment Benefit Plan

In addition to the TMRS OPEB, the City administers a single-employer defined benefit healthcare plan for retirees, established under legal authority of the City Charter. The City is the only employer participating in thePlan. ThePlandoesnotissueapubliclyavailablefinancial report.

Th City provides post-employment benefits for eligible participants enrolled in City-sponsored plans. The benefits are provided in the form of an implicit rate subsidy where the City contributes towards the retiree health premiums before achieving Medicare eligibility. While the Plan offers retiree only rates, a very small implicitliabilitystillexists.

MembershipintheplanasofSeptember30,2025and2024, consistedof:

20252024

InactiveEmployeesorBeneficiariesCurrentlyReceivingBenefits22 InactiveEmployeesEntitledtobutNotYetReceivingBenefits-ActiveEmployees174174 Total176176

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

City of Cibolo Retiree Health Insurance Other Post-employment Benefit Plan (Continued)

Current active employees must be eligible for service retirement under the Texas Municipal Retirement System. Toattainthiseligibilityactiveemployeesmustbeatleastagesixty(60)withfive(5)yearsofservice or have at lease twenty (20) years of employment with the City. When a regular, full-time employee retires, they are eligible to maintain their coverage in the City’s group health coverage. Retirees are eligible for medical, dental,andvisioncoverageasprovidedintheplandocument.Spouses andchildrenoftheretireeare eligiblefortheplan.Benefitsceaseuponthedeathoftheretireortheretiree/spouseattaining age65.

The methods and assumptions used to determine contribution rates in the September 30, 2025 valuation are summarizedbelow:

ValuationDate:September30,2024

MethodsandAssumptionsUsedtoDetermineContributionRates:

DemographicAssumptions

Basedontheexperiencestudyoceringthefour-yearperiodendingDecember 31,2022asconductedfortheTexasMunicipalRetirementSystem(TMRS).

MortalityRatesMortalityratesforactiveemployeeswerebasedonthePubG.H-2010 EmployeeMortalityTable,GenerationalwithProjectionScaleMP-2021for malesorfemales,asappropriate.MortalityRatesforretirees/disabled employeeswerebasedonthePubG.H-2010HealthyRetireeMortalityTable, GenerationalwithProjectionScaleMP-2021formalesorfemales,as appropriate.

HealthCareTrendRatesInitialrateof6.0%decliningtoanultimaterateof3.5%after10years. ParticipationRatesItwasassumedthat25%ofeligibleretireeswouldchoosetoreceiveretiree healthcarebenefitsthroughtheCity.Noemployeesretiringbeforetheageof 50wereassumedtoelectcoverage.

OtherInformation:

AsofSeptember30,2025,thediscountrateusedinthedevelopmentofthe TotalOPEBliabilitywas4.46%comparedto3.95%usedasofSeptember30, 2024.

RetireeContributions

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

City of Cibolo Retiree Health Insurance Other Post-employment Benefit Plan (Continued)

TheCity’s TotalRHIOPEB Liability(TOL), basedontheaboveactuarialfactors, as ofSeptember30, 2025, themeasurement date,was calculatedas follows:

TotalRHIOPEB Liability

BalanceatSeptember30,2023473,415 $

Changesfortheyear:

ServiceCost46,255

InterestonTotalRHIOPEBLiability20,124

ChangeofBenefitTerms-

DifferenceBetweenExpectedand ActualExperience3,397

ChangesofAssumptionsorOther Inputs39,121

BenefitPayments(25,514) NetChanges83,383

BalanceatSeptember30,2024556,798 $

There is no separate trust maintained to fund this TOL. No assets are accumulated in a trust that meets the criteria paragraph 4 of Statement No. 75 to pay relatedbenefits. The following presents theTOL ofthe City, calculated using the discount rate of 4.46%, as well as what the City’s TOL would be if it were calculated usingadiscount ratethatis1-percentagepoint lower(3.46%)and1-percentagepoint higher(5.46%)thanthe current rate:

The following presents what the total RHI OPEB liability of the City would be if it were calculated using heathcare cost trend rates that are 1-percentage point lower (5.0% decreasing to 2.5%)or 1-percentage point higher (7.0% decreasing to 4.5%) than the current healthcare cost trends (6.0% decreasing to 3.5% after 10 years):

$

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE9--OTHERPOSTEMPLOYMENTBENEFIT(OPEB)(CONTINUED)

City of Cibolo Retiree Health Insurance Other Post-employment Benefit Plan (Continued)

FortheyearendedSeptember30,2025,theCityrecognizedanRHIOPEB revenueof$250,577andreported deferred outflows of resources and deferred inflows of resources related to RHI OPEB from the following sources:

DeferredDeferred OutflowsofInflowsof ResourcesResources

DifferenceBetweenExpectedand ActualExperience63,239$351,112 $ ChangesinAssumptionsandOtherInputs90,195430,448 ContributionsSubsequenttothe MeasurementDate-$153,434781,560 $

Deferred outflows of resources in the amount of $0 is related to the RHI OPEB benefits resulting from contributions subsequent to the measurement date. Other amounts reported as deferred outflows and inflows ofresourcesrelatedtoRHIOPEBwillberecognizedinOPEBexpenseasfollows:

FutureYearsPensionExpense:

FortheYearendedSeptember30, 2026(316,956) $ 2027(316,956) 2028(13,757) 20299,772 20309,771

Thereafter$(628,126)

NOTE10--380AGREEMENTS

TheChapter380Incentiveprogram,authorizedbyChapter380oftheTeasLocalGovernmentCode,enables the City of Cibolo to provide grants or reimbursements from the City’s general fund. Tobecome eligible for Chapter 380 Incentives, projects must: create at least $100 million in new real and personal property; or generateatleast$35millioningrosssalesthatissubjecttothecollectionoflocalsalesandusetax.Businesses thathavea380IncentiveAgreementwiththeCityareeligibletoreceiveareimbursementoftaxespaidforthe yeariftheyhavemettherequirementsoutlinedintheagreementbyacertaindateeachyear.Forthefiscalyear endedSeptember30,2025,theCityreimbursed$121,021insalestaxliabilityrebatesand$182,598inproperty taxesrebates, withanadditional$15,500inotherrebates.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED) SEPTEMBER30,2025

NOTE11--INTERFUNDTRANSFERS&BALANCES

Interfundtransferareasfollows:

TransferFromTransferToAmountPurpose GeneralFundNonMajorGovernmentalFund40,000$InsupportofSpecialEvents GrantFundGeneralFund88,351InsupportofAdministrativeServices NonMajorGovernmentalFundGeneralFund107,245InsupportofCourtServices GeneralFundGrantFund5,054InsupportofCapitalProjects Water&SewerFundCapitalProjectsFund40,373InsupportofCapitalProjects NonMajorProprietaryFundsWater&SewerFund799,605InsupportofCapitalProjects CapitalProjectsFundDrainageFund249,507InsupportofCapitalProjects DrainageFundGeneralFund261,426InsupportofAdministrativeServices Water&SewerFundGeneralFund1,265,567InsupportofAdministrativeServices Water&SewerFundDebtServiceFund19,043InsupportofBondPayment NonMajorProprietaryFundsDrainageFund132,884InsupportofCapitalProjects GrantFundDrainageFund893,950InsupportofCapitalProjects GrantFundWater&SewerFund55,044InsupportofCapitalProjects NonMajorGovernmentalFundDebtServiceFund748,950InsupportofBondPayment

$4,706,999

Interfundbalancesareas follows:

DueFromDueToAmount CapitalProjectsGeneralFund478,844 $ GeneralFundDebtService13,438 DrainageFundNonMajorGovernmentalFund1,000 GeneralFundCapitalProjectsFund28,508 GeneralFundDrainageFund20,614 GeneralFundNonMajorGovernmentalFund364,626 GeneralFundNonMajorProprietaryFund196,400 GeneralFundTrafficImpactFund235,147 GeneralFundWater&SewerFund287,822 GrantFundDrainageFund13,329 GrantFundGeneralFund136,928 GrantFundWater&SewerFund23,369 NonMajorGovernmentalFundGeneralFund119,832 Water&SewerFundNonMajorGovernmentalFund7,311 Water&SewerFundGeneralFund389

$1,927,557

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE12--COMMITMENTS

The City hasentered intovariouscontracts forconstruction projects. AsofSeptember30, 2025, theCityhad thefollowingestimated commitmentsrelatedtothesecontracts:

PrimaryGovernment:

GovernmentalActivities:

EstimatedProjectExpendedtoEstimatedFuture CosttoCityDateCommitment

TolleRoadProject371,440$323,051$48,389 $

TownCreekTrailExtension220,850203,80517,045

FM1103RoadProject47,00012,12834,872

RoadRehabilitationGroup1245,000208,11736,883

RoadRehabilitationGroup22,633,5752,480,284153,291

RoadRehabilitationGroup32,953,08883,9782,869,110

TotalGovernmentalCommitments6,470,9533,311,3633,159,590

Business-TypeActivities:

CountryValeLiftStation53,060$46,669$6,391 $ DeerCreekDrainageProject460,912448,91611,996

TownCreekDrainageProject7,233,9257,144,68289,243

VenandoSewerExtension256,800153,953102,847

TotalBusiness-TypeActivities8,004,6977,794,220210,477

TotalEstimatedFutureCommitments14,475,650$11,105,583$3,370,067 $

NOTE13--JOINTVENTURES

Cibolo Valley Local Government Corporation

TheCiboloValleyLocalGovernmentCorporation(CVLGC)isapublicnonprofitcorporationincorporatedin March 2012 to assist and act on behalf of the cities ofCibolo andSchertz to obtain additional water sources. Theparticipatinggovernmentshaveanongoingfinancialresponsibilitytofundtheoperationofthecorporation through either purchase of services or by subsidizing the operations. Contributions to the corporation are reflected as “operating expenses” in the Water & Sewer fund. Separate financial statements for the CVLGC maybeobtainedfromCVLGC at108WMountainStreet, Seguin, Texas78156.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE13--JOINTVENTURES(CONTINUED)

TheCityofCiboloisjointlyliable,togetherwiththeCityofSchertz,foroperatingdeficitsandlong-termdebt ofCVLGC.FollowingisasummaryoffinancialdatareportedintheCorporation’sauditedfinancialstatements datedSeptember30, 2024:

Assets: CashandInvestments$1,133,338 OtherCurrentAssets518 CapitalAssets(Net)1,090,758

TotalAssets 2,224,614

Liabilities: Current56,060

TotalLiabilities 56,060

NetPosition: NetInvestmentinCapitalAssets1,090,758 Unrestricted1,077,796

TotalNetPosition $2,168,554

Canyon Regional Water Authority

CanyonRegionalWaterAuthority(the“Authority”)operatesunderChapter65oftheTexasWaterCode.The Authority is comprised of eleven member entities listed in Note 1 Section A. The Authority was created to purchase,own,hold,leaseandotherwiseacquiresourcesofpotablewater;build,operateandmaintainfacilities forthetreatmentandtransportation water; sellpotablewatertolocal governments,watersupplycorporations and otherpersonsinthisstate;and to protect, preserve, and restore thepurity and sanitary condition ofwater in thearea.SeparatefinancialstatementsmaybeobtainedfromtheAuthority.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE13--JOINTVENTURES(CONTINUED)

Following is a summary of financial data as reported in the Authority’s audited financial statements dated September30,2025:

OtherCurrentAssets5,912,246

OtherAssets23,684,528

CapitalAssets(Net)139,842,779

NOTE14--CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by such agencies. Anydisallowedclaims,includingamountsalready collected mayconstitutealiabilityoftheapplicablefunds. Theamount,ifany,ofexpenditureswhichmaybedisallowedbythegrantorcannotbedeterminedatthistime althoughtheCityexpectssuchamounts,ifany,to beimmaterial.

NOTE15--RISKMANAGEMENT

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; businessinterruption;errorsandomissions;injuriestoemployees; employeehealth benefits;andotherclaims ofvariousnatures. TheCitycontractswiththeTexasMunicipalLeague(TML)toprovideinsurancecoverage for property and casualty, and workers compensation. TML is a multi-employer group that provides for a combination of modified self-insurance and stop-loss coverage. Contributions are set annually by TML. LiabilitybytheCityisgenerallylimitedtothecontributedamounts. Annualcontributions fortheyearended September30,2025were$559,882.

NOTES TOBASICFINANCIALSTATEMENTS (CONTINUED)

SEPTEMBER30,2025

NOTE16--LITIGATION

The City is the subject of various claims and litigation that have arisen in the course of its operations. Management isoftheopinionthat theCity’s liabilityin thesecases, if decided adversely to theCity, willnot haveamaterial affect ontheCity’sfinancial position.

NOTE17--PRIORPERIODADJUSTMENT

Adjustments were made to reflect the adoption of GASB 101 in the financial statements for the year-ending September30,2024. Theseadjustmentsareasfollows:

BeginningFundBalance/NetPosition,asPreviouslyReported54,072,612$40,885,686$22,771,212 $ IncreaseinAccruedCompensatedAbsences(569,449)(41,915)(10,660)

BeginningFundBalance/NetPosition,Restated53,503,163$40,843,771$22,760,552 $

NOTE18--DEFICITFUNDBALANCE

The Special Events Fund has a deficit fund balance of $7,293. Management plans to reduce expenses in the comingyeartoalleviatethedeficit.

REQUIREDSUPPLEMENTARYINFORMATION

Required supplementary information includes financial information and disclosures that are required by the GASB butarenotconsideredapartofthebasicfinancial statements.Suchinformationincludes:

• BudgetaryComparisonSchedule-General Fund

• BudgetaryComparisonSchedule-Grant Fund

• BudgetaryComparisonSchedule-TrafficImpact Fund

• ScheduleofChangesinNet PensionLiabilityandRelatedRatios-Last10Plan Years

• ScheduleofContributions-Last10Fiscal Years

• ScheduleofChangesinTotalOtherPost-EmploymentBenefit LiabilityandRelatedRatios–SupplementalDeathBenefit

• ScheduleofChangesinTotalOtherPost-EmploymentBenefit LiabilityandRelatedRatios–Retiree Health

CITYOFCIBOLO

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL GENERALFUND FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024

VarianceWith 2025FinalBudgetActualPositive2024 OriginalFinalAmounts(Negative)Actual REVENUES

BudgetedAmounts

PropertyTaxes11,747,000$11,747,000 $$11,588,454$(158,546)9,901,745 $

SalesTaxes5,460,0005,460,0005,522,56962,5694,907,969

FranchiseTaxes1,491,2001,491,2001,430,214(60,986)1,350,872

LicensesandPermits193,400193,400145,975(47,425)2,786,392

AnimalControlFees33,75033,75056,81423,06458,305

FinesandForfeitures243,050243,050

Intergovernmentals1,189,0001,189,000

(443,366)805,493

Grants----54,961

Short-TermRentals98,50098,500

EXPENDITURES

EconomicDevelopment:

PublicRelations Salaries&Benefits115,058118,342117,2071,135113,924 Supplies1,15015013515954

2,88611490

149(149)-

14,046139,244

FinanceandAccounting Salaries&Benefits578,349589,167

3,1718,209

16,416855,941

$

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL GENERALFUND(CONTINUED) FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024

BudgetedAmounts

24,30689,020

InformationTechnologyOffice

(678)16,164

9,65991,738

2,52711,280

2,34611,378

(8,346)1,240,283

CITYOFCIBOLO

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL GENERALFUND(CONTINUED) FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024

Parks&Recreation

BudgetedAmounts

9,21679,414

97,1748,753 TransfersIn1,743,1151,743,1151,722,590(20,525)1,858,099 TransfersOut(40,000)(43,886)(45,054)(1,168)(30,000)

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL GENERALFUND(CONTINUED) FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024

VarianceWith 2025FinalBudgetActualPositive2024 OriginalFinalAmounts(Negative)Actual NetChangeinFundBalance

BudgetedAmounts

$

$

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL GRANTFUND FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024 VarianceWith 2025FinalBudgetActualPositive2024 OriginalFinalAmounts(Negative)Actual REVENUES Grants250,0003,922,200

BudgetedAmounts

EXPENDITURES Administration:

InformationTechnologyOffice:

FireDepartment: Salaries&Benefits--18,436(18,436)329,170 TotalFireDepartment --18,436(18,436)329,170 TOTALEXPENDITURES-3,649,2621,641,9112,016,8951,589,244

Excess(Deficiency)ofRevenues Over(Under)Expenditures250,000272,9381,024,179751,241322,714

OTHERFINANCINGSOURCES(USES) TransfersIn-126,2575,054(121,203)TransfersOut--(1,037,346)(1,037,346)(408,609)

TOTALOTHERFINANCING SOURCES(USES)-126,257(1,032,292)(1,158,549)(408,609)

NetChangeinFundBalance250,000399,195(8,113)(407,308)(85,895) FUNDBALANCE-BEGINNING52,68052,68052,680-138,575 FUNDBALANCE-ENDING$302,680451,875 $$44,567$(407,308)52,680 $

CITYOFCIBOLO

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCES –BUDGETANDACTUAL TRAFFICIMPACTFUND FOR THEYEARENDEDSEPTEMBER30,2025WITHCOMPARATIVE2024 VarianceWith 2025FinalBudgetActualPositive2024

REVENUES

EXPENDITURES

BudgetedAmounts

-4,115,627

NOTES TOREQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESIN FUNDBALANCES– BUDGETANDACTUAL

YEAR ENDEDSEPTEMBER30, 2025

BudgetaryInformation–Thebudgetispreparedinaccordancewithaccountingprinciplesgenerallyaccepted in the UnitedStatesof America.TheCitymaintainsstrict budgetary controls. Theobjectiveofthese controls is to ensure compliance with legal provisions embodied in the annual appropriation budget approved by the City Council and as such is a good management control device. Annual budgets are adopted for the general fund, traffic impact fund, water and sewer fund, grant fund, debt service fund, and various nonmajor funds. Project-length financial plansare adoptedfor capitalproject funds. Ofthesebudgets, thegeneral fund, traffic impact fund, water and sewer fund, grant fund, debt service fund, and various nonmajor funds are legally adopted.

Budgetary preparation and control is exercised at the department level. The city manager is authorized to transfer budget amounts between accounts within a department. These transfers cannot increase the overall budgetedexpenditures.

REQUIREDSUPPLEMENTARYINFORMATION

SCHEDULEOFCHANGES –NETPENSIONLIABILITYANDRELATEDRATIOS LASTTENPLANYEARS 2015201620172018

ServiceCost943,527$1,072,363$1,188,141$1,201,011 $ Interest(ontheTotalPensionLiability)571,820648,018761,533885,979 ChangesofBenefitTerms---DifferencebetweenExpected

andActualExperience(7,356)92,870142,214(11,297) ChangeofAssumptions39,380---

BenefitPayments,IncludingRefundsof

EmployeeContributions(176,960)(183,789)(195,086)(314,267)

NetChangeinTotalPensionLiability1,370,4111,629,4621,896,8021,761,426

TotalPensionLiability-Beginning7,785,5729,155,98310,785,44512,682,247

TotalPensionLiability-Ending9,155,983$10,785,445$12,682,247$14,443,673 $ 2015201620172018

Contributions-Employer689,147$707,822$829,521$872,855 $

Contributions-Employee378,059411,769452,749467,840 NetInvestmentIncome9,723505,6151,236,531(337,069)

BenefitPayments,IncludingRefundsof

EmployeeContributions(176,960)(183,789)(195,086)(314,267)

AdministrativeExpense(5,920)(5,709)(6,404)(6,503) Other(292)(308)(325)(338)

NetChangeinPlanFiduciaryNetPosition893,7571,435,4002,316,986682,518 PlanFiduciaryNetPosition-Beginning6,586,3377,480,0948,915,49411,232,480 PlanFiduciaryNetPosition-Ending7,480,094$8,915,494

201920202021202220232024

$1,293,2391,417,353$1,462,555$1,753,286$2,185,901$2,455,363 $ 1,007,2121,162,7831,280,8761,430,0611,655,3201,885,045 ------

227,112(382,748)(37,940)704,419412,441(67,776) 114,983---(204,364)-

(337,261)(462,450)(478,464)(802,953)(730,852)(830,556) 2,305,2851,734,9382,227,0273,084,8133,318,4463,442,076 14,443,67316,748,95818,483,89620,710,92323,795,73627,114,182 $16,748,95818,483,896$20,710,923$23,795,736$27,114,182$30,556,258 $

201920202021202220232024

$926,7641,009,825$1,051,901$1,220,226$1,410,050$1,648,546 $ 510,010565,971589,061715,210853,800905,084 1,847,0651,130,4332,234,724(1,499,309)2,338,9162,502,850

(337,261)(462,450)(478,464)(802,953)(730,852)(830,556) (10,408)(7,294)(10,307)(12,933)(14,807)(15,971) (313)(285)7115,433(104)(371) 2,935,8572,236,2003,386,986(364,326)3,857,0034,209,582 11,914,99814,850,85517,087,05520,474,04120,109,71523,966,718 $14,850,85517,087,055$20,474,041$20,109,715$23,966,718$28,176,300 $ $1,898,1031,396,841$236,882$3,686,021$3,147,464$2,379,958 $

$7,285,8568,085,299$8,415,161$10,217,285$12,198,109$12,929,770 $

REQUIREDSUPPLEMENTARYINFORMATION SCHEDULEOFCITYCONTRIBUTIONS LASTTENFISCALYEARS*

ContributionsinContributionsas ActuariallyRelationtotheContributionaPercentageof DeterminedActuariallyDeterminedDeficiencyCoveredCovered FiscalYearContributionContribution(Excess)PayrollPayroll

20251,887,602$1,887,602$-13,954,225$13.53% 20241,591,8091,591,809-12,812,31312.42% 20231,365,4841,365,484-11,717,81811.65% 20221,172,6471,172,647-9,713,76012.07% 20211,007,7691,007,769-8,063,91012.50% 2020969,262969,262-7,726,50312.54% 2019900,408900,408-7,036,29212.80% 2018869,704869,704-6,680,58013.02% 2017797,062797,062-6,303,65412.64% 2016729,386729,386-5,966,88112.22%

REQUIREDSUPPLEMENTARYINFORMATION NOTES TOSCHEDULEOFCONTRIBUTIONS

MethodsandAssumptionsUsedtoDetermineContributionRates:

ActuarialCostMethodEntryAgeNormal

AmortizationMethodLevelPercentageofPayroll,Closed RemainingAmortizationPeriod20Years(longestamortizationladder)

AssetValuationMethod10YearSmoothedMarket;12%SoftCorridor Inflation2.50%

SalaryIncreases3.60%to11.85%IncludingInflation InvestmentRateofReturn6.75%

RetirementAgeExperience-basedtableofratesthatvarybyage.Lastupdatedforthe 2023valuationpursuanttoanexperiencestudyoftheperiodending 2022.

MortalityPost-retirement:2019MunicipalRetireesofTexasMortalityTables. Maleratesaremultipliedby103%andfemaleratesaremultipliedby 105%.Theratesareprojectedonafullygenerationalbasisbythemost recentScaleMP-2021(withimmediateconvergence).

Pre-retirement:PUB(10)mortalitytables,withthe110%ofthePublic Safetytableusedformalesandthe100%oftheGeneralEmployee tableusedforfemales.Theratesareprojectedonafullygenerational basisbythemostrecentScaleMP-2021(withimmediate convergence).

OtherInformation:Increasedstatutorymaxto15.50%

20172018201920202021

ServiceCost14,876$18,045$16,757$24,256$29,453 $ InterestonTotalOPEBLiability4,8235,3586,0445,9225,633 ChangesofBenefitTerms----DifferencebetweenExpected andActualExperience-(7,726)(13,729)(6,431)(13,695) ChangeofAssumptionsorOtherInputs13,661(13,311)40,40541,18410,793 BenefitPayments(647)(668)(729)(809)(1,683) NetChangeinTotalOPEBLiability32,7131,69848,74864,12230,501 TotalOPEBLiability-Beginning120,476153,189154,887203,635267,757

TotalOPEBLiabilityasaPercentage

TotalOPEBLiability

202220232024

ServiceCost37,804$20,737$21,981 $ InterestonTotalOPEBLiability5,8089,27610,200 ChangesofBenefitTerms--DifferencebetweenExpected andActualExperience20,7581,216(12,379) ChangeofAssumptionsorOtherInputs(139,059)13,423(16,416) BenefitPayments(3,065)(3,659)(3,879) NetChangeinTotalOPEBLiability(77,754)40,993(493) TotalOPEBLiability-Beginning298,258220,504261,497

TotalOPEBLiability-Ending220,504$261,497$261,004 $

CoveredEmployeePayroll10,217,285$12,198,109$12,929,770 $

TotalOPEBLiabilityasaPercentage ofCoveredEmployeePayroll2.16%2.14%2.02%

*GASBStatement No. 75requires10years ofdatatobeprovidedinthis schedule. Thisistheeighth yearof implementationofGASB75. TheCitywilldevelopthescheduleprospectivelyasdatabecomesavailable.

NOTES TOSCHEDULEOFCHANGES

No assets are accumulated in a trust that meets thecriteria in paragraph 4 of GASBStatement No. 75 to pay related benefits.

SCHEDULEOFCHANGES –TOTALOTHERPOST-EMPLOYMENTBENEFITLIABILITY ANDRELATEDRATIOS LASTSEVENYEARS*

TotalRHIOPEBLiability

20192020202120222023

ServiceCost186,984$190,724$361,766$24,193$26,419 $ InterestonTotalRHIOPEBLiability60,12067,49161,0177,78817,054 ChangesofBenefitTerms---122,146DifferencebetweenExpected andActualExperience(13,271)(7,853)(1,103,837)(115,411)16,119 ChangeinAssumptionsorOtherInputs-133,362(1,288,092)-39,087 BenefitPayments(1,936)(8,170)(7,063)(20,651)(29,363)

NetChangeinTotalRHIOPEBLiability231,897375,554(1,976,209)18,06569,316

TotalRHIOPEBLiability-Beginning1,710,5021,942,3992,317,953341,744359,809

TotalRHIOPEBLiability-Ending1,942,399$2,317,953$341,744$359,809$429,125 $

CoveredPayroll6,749,341$6,884,328$8,063,910$9,310,993$9,683,433 $

TotalRHIOPEBLiabilityasaPercentage ofCoveredPayroll28.78%33.67%4.24%3.86%4.43%

TotalRHIOPEBLiability

20242025

ServiceCost30,001$46,255 $ InterestonTotalRHIOPEBLiability21,19820,124 ChangesofBenefitTerms-DifferencebetweenExpected andActualExperience(34,475)3,397 ChangeinAssumptionsorOtherInputs53,27239,121 BenefitPayments(25,706)(25,514)

NetChangeinTotalRHIOPEBLiability44,29083,383

TotalRHIOPEBLiability-Beginning429,125473,415

TotalRHIOPEBLiability-Ending473,415$556,798 $

CoveredPayroll11,698,825$12,166,778 $

TotalRHIOPEBLiabilityasaPercentage ofCoveredPayroll4.05%4.58%

*GASB Statement No. 75 requires 10 years of datato be provided in this schedule. This is the seventh year ofimplementationofGASB75. TheCity will developthescheduleprospectivelyasdatabecomesavailable.

NOTES TOSCHEDULEOFCHANGES

No assets are accumulated in a trust that meets thecriteria in paragraph 4 of GASBStatement No. 75 to pay related benefits.

Supplementaryinformationincludes financialstatementsandschedules whicharenotrequiredbytheGASB, norapartofthebasicfinancialstatements.

Suchstatementsandscheduleinclude:

 ComparativeBalanceSheet–General Fund

 ComparativeBalanceSheet–GrantFund

 ComparativeBalanceSheet–TrafficImpactFund

 ComparativeBalanceSheet–CapitalProject Fund

 ComparativeStatement ofRevenues, Expenditures&ChangesinFundBalance–CapitalProjectFund

 ComparativeBalanceSheet–DebtServiceFund

 ComparativeStatement ofRevenues, Expenditures&ChangesinFundBalance–DebtServiceFund

 StatementsofRevenues,Expenditures&ChangesinFundBalance–BudgetandActual–DebtService Fund

 CombiningStatements–NonmajorGovernmentalFunds

o CombiningStatements–NonmajorSpecialRevenueFunds

o CombiningStatements–NonmajorCapitalProjects Fund

o BudgetaryStatements

 ComparativeStatements–WaterandSewerFund

 ComparativeStatements–DrainageFund

 CombiningStatements–NonmajorBusiness-TypeFunds

 StatementsoftheDiscretelyPresentedComponentUnit

FUNDDESCRIPTIONS

SPECIALREVENUEFUNDS

Special revenuefundsareusedtoaccountforspecificrevenuesandexpendituresthatarelegallyrestrictedfor aspecificpurpose.

• SpecialEventFund-AccountsforspecialeventsandconferencesheldbytheCity,suchasCibolofest.

• Street Maintenance Fund - Accounts for sales tax revenue collected for the purposes of street maintenanceandthecorrespondingexpenditures.

• CourtTechnology-Accountsforaportionofmunicipalfinesthatareallocatedtocourttechnologyand theallowed expenditures.

• CourtSecurity-Accountsforaportionofmunicipalfinesthatareallocatedtocourttechnologyandthe allowedexpenditures.

• PoliceSeizureFund–Accountsforrevenuesfromseizedassetsandtheallowedexpendituresfromthat revenue.

• SpecialDonationFund–Accountsforthespecificallysetasiderevenuesforpolice,animalcontroland firedepartmentdonations, andtheassociatedexpenditures.

• PoliceEducation Fund –Accountsforpolicerevenuethat is allocatedtolawenforcement trainingand educationandtheassociatedexpenditures.

• ChildSafetyFund -Accountsforthedrugawareness andpreventionprogram, schoolcrossingguards, andotherchildsafety programs.

• Hotel Occupancy Fund - Accounts for revenues from hotel and tourism taxes and the associated expenditures.

• Public Education Fund - Accounts from franchise fees and associated revenues to be used for public educationongovernmentandgovernmentactivities.

• Development Services Fund – Accounts for the revenues and expenditures related to permitting, development, andcodeenforcement.

• Public Facility Fund - Accounts for allocated revenues related to the upkeep and maintenance of City facilities.

CAPITALPROJECTFUNDS

Capital projectfunds areusedtoaccount forspecificexpendituresandresourcesand associatedrevenuesthat arelegally restrictedforaspecificpurpose.

• CapitalReplacementFund –Accountsfortheaccumulationofresourcesand therelateddisbursement forspecificcapital replacement projects.

• ParkLandFeeFund–Accountsfortheaccumulationofresourcesandtherelateddisbursementforthe maintenance, procurementandcreationofCityparks.

OTHERMAJORGOVERNMENTALFUNDS

• CapitalProjectFund–Accountsforexpendituresformajorcapital projectsandrelatedrevenues.

• Debt Service Fund – Accounts for the accumulation of resources and the related disbursement for the retirementoflongterm debt.

NONMAJORBUSINESSFUNDS

• DrainageImpactFund -Accountsforexpendituresandassociatedrevenuesrelatedtomaintenanceand operationsofthedrainagesystemduetotheimpactofnewconnections.

• Water Impact Fund - Accounts for expenditures and associated revenues related to maintenance and operationsofthewatersystemduetotheimpactofnewconnections.

• Sewer Impact Fund - Accounts for expenditures and associated revenues related to maintenance and operationsofthesewersystemduetotheimpactofnewconnections.

ASSETS

CITYOFCIBOLO

COMPARATIVEBALANCESHEET

GENERALFUND

SEPTEMBER30,2025AND2024

20252024

CashandCashEquivalents3,559,718$4,641,705 $ Investments4,018,5852,734,186

AccountsReceivables(netofallowances): Taxes1,491,7021,346,078 Other214,671360,070

DuefromOtherGovernments90,389115,864 DuefromComponentUnit456,6493,376 PrepaidExpenditures20,02230,531 Inventories22,01921,778

DuefromOtherFunds735,9891,026,524 TOTALASSETS$10,609,74410,280,112 $

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: AccountsPayable534,358$580,095 $ DuetoOtherFunds1,146,55422,084 AccruedExpenditures238,915352,730 PayrollLiabilities1,226,827967,332 UnearnedRevenues448,7741,124,853

TotalLiabilities 3,595,4283,047,094

DeferredInflowsofResources: UnavailableRevenues-Taxes122,275102,491

TotalDeferredInflowsofResources122,275102,491

FundBalances: Nonspendable: Inventory22,01921,778 PrepaidItems20,02230,531

Restricted: StreetMaintenance100,000100,000 TreeProject1,4001,400 YouthCouncil5,0005,000

Unassigned6,743,6006,971,818

TotalFundBalances 6,892,0417,130,527

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES

$10,609,74410,280,112 $

ASSETS

COMPARATIVEBALANCESHEET GRANTFUND

SEPTEMBER30,2025AND2024

20252024

CashandCashEquivalents-$106,048 $ Investments914,1283,474,818

DuefromOtherGovernments45,91112,348

PrepaidExpenditures1,644TOTALASSETS$961,6833,593,214 $

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: AccountsPayable52,821$14,923 $ DuetoOtherFunds173,626453,389

UnearnedRevenues690,6693,072,222

TotalLiabilities 917,1163,540,534

FundBalances: Unassigned44,56752,680 TotalFundBalances 44,56752,680

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES$961,6833,593,214 $

ASSETS

CITY

COMPARATIVEBALANCESHEET TRAFFICIMPACTFUND

SEPTEMBER30,2025AND2024

20252024

CashandCashEquivalents3,230,603$3,053,124 $ Investments2,393,0451,886,429

AccountsReceivables(netofallowances): Other4,2684,298

DuefromOtherFunds235,147107

TOTALASSETS$5,863,0634,943,958 $

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: AccountsPayable30,460$11,686 $ UnearnedRevenues2,9172,917

TotalLiabilities 33,37714,603

FundBalances: Restricted: CapitalImprovements5,829,6864,929,355 TotalFundBalances 5,829,6864,929,355

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES$5,863,0634,943,958 $

CITYOFCIBOLO

COMPARATIVEBALANCESHEET CAPITALPROJECTFUND SEPTEMBER30,2025AND2024

20252024

ASSETS Investments15,850,367$7,614,616 $ DuefromOtherGovernments1,147,755TOTALASSETS$16,998,1227,614,616 $

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: AccountsPayable2,399,354$2,018,779 $ DuetoOtherFunds478,8441,400 TotalLiabilities 2,878,1982,020,179

FundBalances: Restricted: CapitalImprovements14,119,9245,594,437 TotalFundBalances 14,119,9245,594,437

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES$16,998,1227,614,616 $

CITYOFCIBOLO

COMPARATIVESTATEMENTOFREVENUES, EXPENDITURES ANDCHANGES INFUNDBALANCE

CAPITALPROJECTFUND

SEPTEMBER30,2025AND2024

20252024

REVENUES

Intergovernmental1,147,755$$

InvestmentEarnings543,252582,141

TOTALREVENUES1,691,007582,141

EXPENDITURES

PublicSafety: Repairs&Maintenance48,809TotalPublicSafety 48,809-

PublicMaintenance:

ContractServices4,613Repairs&Maintenance54,32444,495 CapitalOutlay5,712,9896,296,315

TotalPublicMaintenance5,771,9266,340,810

Parks&Recreation:

Repairs&Maintenance6,250CapitalOutlay181,882855,461

TotalParks&Recreation188,132855,461

FireDepartment: Repairs&Maintenance13,231CapitalOutlay412,2703,542,520

TotalFireDepartment 425,5013,542,520

DebtService: Interest204,202208,639

TotalDebtService 204,202208,639

TOTALEXPENDITURES6,638,57010,947,430

Excess(Deficiency)ofRevenues Over(Under)Expenditures(4,947,563)(10,365,289)

OTHERFINANCINGSOURCES(USES)

TransfersIn40,37364,985 TransfersOut(249,507)(1,857,976) IssuanceofDebt12,960,0008,843,867 PremiumsonIssuanceofDebt750,692364,772

TOTALOTHERFINANCING SOURCES(USES)13,501,5587,415,648

NetChangeinFundBalance8,553,995(2,949,641)

FUNDBALANCE-BEGINNING5,594,4378,544,079

FUNDBALANCE-ENDING$14,148,4325,594,438 $

ASSETS

COMPARATIVEBALANCESHEET

DEBTSERVICEFUND

SEPTEMBER30,2025AND2024

20252024

CashandCashEquivalents1,706,735$1,396,811 $

AccountsReceivables(netofallowances): Taxes91,34467,980 Other-13,750

DuefromOtherFunds13,438TOTALASSETS$1,811,5171,478,541 $

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: DuetoOtherFunds-$210 $ TotalLiabilities -210

DeferredInflowsofResources: UnavailableRevenues-Taxes101,16862,977 TotalDeferredInflowsofResources101,16862,977

FundBalances: Restricted: DebtService1,710,3491,415,354 TotalFundBalances 1,710,3491,415,354

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES$1,811,5171,478,541 $

CITYOFCIBOLO

COMPARATIVESTATEMENTS OFREVENUES,EXPENDITURES AND CHANGES INFUNDBALANCE DEBTSERVICEFUND SEPTEMBER30,2025WITHCOMPARATIVEACTUALFOR2024 VarianceWith 2025FinalBudgetActualPositive2024

BudgetedAmounts

Amounts(Negative)Actual REVENUES PropertyTaxes6,560,000

$

EXPENDITURES

361,008(593,019)

$380,0511,415,354 $

COMBININGBALANCESHEET NONMAJORGOVERNMENTALFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 CombinedCombined SpecialRevenueCapitalProjects FundsFundsTotal

ASSETS

CashandCashEquivalents1,240,749$7,983 $$1,248,732 Investments3,000,5251,241,3374,241,862

AccountsReceivable,NetofAllowance: Taxes233,806-

LIABILITIESANDFUNDBALANCE Liabilities: AccountsPayable451,680$1,384 $$453,064 PayrollLiabilities26,270-26,270 DuetoOtherFunds25,12294,709

522,49396,093

FundBalance: Nonspendable23,610-23,610 Restricted1,828,1571,093,9472,922,104 Committed2,536,05864,2802,600,338 Unassigned(30,589)-(30,589) TotalFundBalances 4,357,2361,158,2275,515,463 TOTALLIABILITIESAND FUNDBALANCES

CITYOFCIBOLO

COMBININGSTATEMENTOFREVENUES,EXPENDITURES,AND CHANGES INFUNDBALANCE

NONMAJORGOVERNMENTALFUNDS FOR THEYEARENDEDSEPTEMBER30,2025

CombinedCombined SpecialRevenueCapitalProjects FundsFundsTotal REVENUES

SalesTaxes1,358,802$$$1,358,802

FranchiseTaxes29,461-29,461

OccupancyTaxes5,770-5,770

LicensesandPermits1,834,83775,6001,910,437

FinesandForfeitures72,155-72,155

IntergovernmentalRevenues5,285-5,285

Rent14,857-14,857

InvestmentEarnings173,80568,394242,199 Miscellaneous104,697-104,697

TOTALREVENUES3,599,669143,9943,743,663

EXPENDITURES

Current: Administration6,89482,07388,967

PublicSafety26,304-26,304

PublicWorks2,406,028-2,406,028

ParksandRecreation87,316-87,316

CapitalOutlay120,250557,256677,506

TOTALEXPENDITURES2,646,792639,3293,286,121

Excess(Deficiency)ofRevenues Over(Under)Expenditures952,877(495,335)457,542

OTHERFINANCINGSOURCES(USES)

TransfersIn40,000-40,000

TransfersOut(856,195)-(856,195)

TOTALOTHERFINANCING SOURCES(USES)(816,195)-(816,195)

NetChangeinFundBalance136,682(495,335)(358,653)

FundBalances,Beginning4,220,5541,653,5625,874,116

FundBalances,Ending$4,357,2361,158,227 $$5,515,463

CITYOFCIBOLO COMBININGBALANCESHEET NONMAJORSPECIALREVENUEFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 StreetCourtCourtPoliceSpecial SpecialEventsMaintenanceTechnologySecuritySeizureDonation FundFundFundFundFundFund

ASSETS

CashandCashEquivalents1,181$-$5,551$37,532$66,241$29,796 $ Investments-1,219,154---AccountsReceivable,NetofAllowance: Taxes-227,200---Other-----350 PrepaidExpenditures23,610----DuefromOtherFunds3,311-98532727,425-

$6,536$37,859$93,666$30,146 $

LIABILITIESANDFUNDBALANCE Liabilities: AccountsPayable7,195$366$-$-$-$$ PayrollLiabilities-----DuetoOtherFunds8,779114---UnearnedRevenue19,421----TotalLiabilities 35,395480----

FundBalance: Nonspendable23,610----Restricted-1,445,8746,53637,85993,66630,146 Committed-----Unassigned(30,903)----TotalFundBalances(7,293)1,445,8746,53637,85993,66630,146 TOTALLIABILITIESAND FUNDBALANCES

$28,1021,446,354$6,536$37,859$93,666$30,146 $

SpecialRevenueFunds

PoliceChildHotelPublicDevelopmentPublic EducationSafetyOccupancyEducationServicesFacility FundFundFundFundFundCorporationTotal

$8,98443,160$-$-$-$1,048,304 $$1,240,749 --24,717125,343-1,631,3113,000,525 ---6,606--233,806 -3,721347--8,68413,102 ------23,610 --1,2052,593332,091-367,937

$8,98446,881$26,269$134,542$332,091$2,688,299 $$4,879,729

$--$-$-$305,507$138,612 $$451,680 ----26,270-26,270 -2,600---13,62925,122 ------19,421 -2,600--331,777152,241522,493 ------23,610 8,98444,28126,269134,542--1,828,157 -----2,536,0582,536,058 ----314-(30,589) 8,98444,28126,269134,5423142,536,0584,357,236

$8,98446,881$26,269$134,542$332,091$2,688,299 $$4,879,729

ASSETS

COMBININGBALANCESHEET NONMAJORCAPITALPROJECTFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 CapitalPark ReplacementLandFee FundFund

LIABILITIESANDFUNDBALANCE

CITYOFCIBOLO

COMBININGSTATEMENTOFREVENUES,EXPENDITURES,AND CHANGES INFUNDBALANCE NONMAJORSPECIALREVENUEFUNDS FOR THEYEARENDEDSEPTEMBER30,2025

StreetCourtCourtPoliceSpecial SpecialEventsMaintenanceTechnologySecuritySeizureDonation FundFundFundFundFundFund REVENUES

SalesTaxes-$1,358,802$-$-$-$$ FranchiseTaxes-----OccupancyTaxes-----LicensesandPermits-----FinesandForfeitures--5,5736,7586,600IntergovernmentalRevenues-----Rent14,857----InvestmentEarnings-39,6231261,3363,274986 Miscellaneous34,533---8503,160 TOTALREVENUES49,3901,398,4255,6998,09410,7244,146

EXPENDITURES

Current: Administration-----PublicSafety--4,000-6,000790 PublicWorks-200,715---ParksandRecreation87,316----CapitalOutlay----10,000TOTALEXPENDITURES87,316200,7154,000-16,000790

Excess(Deficiency)ofRevenues Over(Under)Expenditures(37,926)1,197,7101,6998,094(5,276)3,356 OTHERFINANCINGSOURCES(USES) TransfersIn40,000----TransfersOut-(748,950)-(4,757)-TOTALOTHERFINANCING SOURCES(USES)40,000(748,950)-(4,757)-NetChangeinFundBalance2,074448,7601,6993,337(5,276)3,356 FundBalances,Beginning(9,367)997,1144,83734,52298,94226,790 FundBalances,Ending$(7,293)1,445,874$6,536$37,859$93,666$30,146 $ SpecialRevenueFunds

-(21,151)--(67,337)(14,000)(856,195) -(21,151)--(67,337)(14,000)(816,195) (8,070)(83,198)6,77628,015314(261,105)136,682 17,054127,47919,493106,527-2,797,1634,220,554 $8,98444,281$26,269$134,542$314$2,536,058 $$4,357,236

COMBININGSTATEMENTOFREVENUES,EXPENDITURES,AND CHANGES INFUNDBALANCE NONMAJORCAPITALPROJECTFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 CapitalPark ReplacementLandFee FundFund

EXPENDITURES

Excess(Deficiency)ofRevenues Over(Under)Expenditures(76,481)(418,854)(495,335)

$1,158,227

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL SPECIALEVENTSFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

REVENUES

BudgetedAmounts

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL STREETMAINTENANCEFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

BudgetedAmounts

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL COURT TECHNOLOGYFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith 2025FinalBudget-2024 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts

BudgetedAmounts

REVENUES FinesandForfeitures4,0004,000

1,6941,820

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL COURTSECURITYFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

BudgetedAmounts

5861,409

2,3448,370

2,3447,960

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL POLICESEIZUREFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

REVENUES FinesandForfeitures10,00010,000

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL SPECIALDONATIONFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

REVENUES

BudgetedAmounts

4,2101,950

5,3565,959

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL POLICEEDUCATIONFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith 2025FinalBudget-2024 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts

REVENUES

EXPENDITURES

BudgetedAmounts

160704

1,2863,266

5,1303,176

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETTOACTUAL CHILDSAFETYFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE BUDGETANDACTUAL HOTELOCCUPANCYFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith 2025FinalBudget-2024

BudgetedAmounts

REVENUES

3,17619,441

3,17616,441

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE PUBLICEDUCATIONFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith 2025FinalBudget-2024

BudgetedAmounts

PositiveActual OriginalFinalAmounts(Negative)Amounts

REVENUES FranchiseTaxes30,000

Excess(Deficiency)ofRevenues

(1,985)(314,031)

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE DEVELOPMENTSERVICES FUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith 2025FinalBudget-2024 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts REVENUES

BudgetedAmounts

FranchiseTaxes3,263,9003,263,900

(215)-

OTHERFINANCINGSOURCES (USES) TransfersIn(178,500)(178,500)(67,337)111,163TOTALOTHERFINANCING SOURCES(USES)(178,500)(178,500)(67,337)111,163-

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE PUBLICFACILITIES FUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

REVENUES

Excess(Deficiency)ofRevenues

OTHERFINANCINGSOURCES (USES)

CITYOFCIBOLO

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE CAPITALREPLACEMENTFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024) Variancewith

BudgetedAmounts

REVENUES

$10,419140,761 $

SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE PARKLANDFEEFUND FOR THEYEARENDEDSEPTEMBER30,2025 (WITHCOMPARATIVEACTUALTOTALSFOR 2024)

BudgetedAmounts

FinalBudget-2024

(Negative)Amounts REVENUES

$779,9331,512,801 $

COMPARATIVESTATEMENTS OFNETPOSITION WATER &SEWERFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

20252024

ASSETS

CurrentAssets:

CashandCashEquivalents:

Unrestricted3,817,002$4,605,247 $

RestrictedforCustomerDeposits1,008,748940,608

Investments:

Unrestricted6,151,2603,168,893

RestrictedforDebtService878,849840,873

RestrictedforCapitalImprovement2,224,1163,035,940

Inventories156,372171,044

DuefromOtherFunds311,19123,369

AccountsReceivable,NetofAllowance: CustomerAccounts2,363,9152,293,902

Receivables-Other14,638119,510

TotalCurrentAssets 16,926,09115,199,386

NonurrentAssets:

CapitalAssets: Land503,121503,121

WaterRights475,000475,000

UtilityInfrastructure44,967,38841,073,501

TransportationandEquipment2,277,0652,076,383

ConstructioninProgress1,102,508860,922

Less:AccumulatedDepreciation(11,292,429)(10,274,809)

TotalNoncurrentAssets 38,032,65334,714,118

TOTALASSETS 54,958,74449,913,504

DEFERREDOUTFLOWSOFRESOURCES

DeferredPensionRelatedOutflows252,016180,995

DeferredOPEBRelatedOutflows255254

DeferredOPEB-RetireeHealthRelatedOutflows13,80913,704

TOTALDEFERREDOUTFLOWS

OFRESOURCES

$266,080194,953 $

COMPARATIVESTATEMENTS OFNETPOSITION(CONTINUED) WATER &SEWERFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

LIABILITIES

CurrentLiabilities:

20252024

AccountsPayable1,763,289$1,044,464 $ PayrollLiabilities88,03677,894

AccruedInterestPayable20,36924,497

CurrentPortionofCompensatedAbsences32,18232,182 CurrentPortionofLong-TermDebt933,673915,682 CurrentPortionofTotalOPEBLiability2,181CurrentPortionofTotalOPEB-RetireeHealth2,211DuetoOtherFunds7,698569,740

PayablefromRestrictedAssets:

CustomerDepositsPayable1,008,748940,608

TotalCurrentLiabilities

NoncurrentLiabilities:

3,858,3873,605,067

CompensatedAbsences94,99864,363

NetPensionLiability196,256245,932

OPEBLiability19,34223,768

OPEB-RetireeHealthLiability47,90142,607

Long-TermDebt3,960,9414,816,857

TotalNoncurrentLiabilities

4,319,4385,193,527

TOTALLIABILITIES 8,177,8258,798,594

DEFERREDINFLOWSOFRESOURCES

GainonBondRefunding267,702302,052 DeferredPensionRelatedInflows139,19314,720 DeferredOPEBRelatedInflows5,6514,817 DeferredOPEB-RetireeHealthRelatedInflows70,340102,588

TOTALDEFERREDINFLOWS OFRESOURCES 482,886424,177

NETPOSITION

NetInvestmentinCapitalAssets35,543,02731,632,761 Restrictedfor:

DebtService858,480816,376

Unrestricted10,162,6068,436,549

TOTALNETPOSITION

$46,564,11340,885,686 $

CITYOFCIBOLO

COMPARATIVESTATEMENTS OFREVENUES,EXPENSES, ANDCHANGES INNETPOSITION WATER &SEWERFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

OPERATINGREVENUES

20252024

MeteredWaterSales7,964,665$7,934,866 $ WastewaterSalesCharges5,542,7874,820,119 GarbageFees3,556,2113,845,339

ConnectionandPlatting102,623127,357

CustomerPenalties170,313158,385

WaterAcquisitionFees816,465730,541

TOTALOPERATINGREVENUES 18,153,06417,616,607

OPERATINGEXPENSES

GeneralandAdministrative4,301,5893,541,682 WaterSystem3,320,3073,301,390

WastewaterSystem3,941,2033,467,544

GarbageSystem3,059,6193,242,641

DrainageSystem

Depreciation1,050,645910,615

TOTALOPERATINGEXPENSES 15,673,36314,463,872

2,479,7013,152,735

NONOPERATINGREVENUES(EXPENSES)

InvestmentEarnings599,917616,146 Grants114,241InterestExpense(60,905)(98,943) ContributedCapital3,023,2652,160,422 GainonSaleofCapitalAssets19,850Miscellaneous14,6062,542

TOTALNONOPERATINGREVENUES(EXPENSES)3,710,9742,680,167 INCOMEBEFORECONTRIBUTIONSANDTRANSFERS6,190,6755,832,902

TRANSFERSANDCONTRIBUTIONS

TransfersIn854,650TransfersOut(1,324,983)(1,315,272)

TOTALTRANSFERSANDCONTRIBUTIONS(470,333)(1,315,272)

CHANGEINNETPOSITION 5,720,3424,517,630

NETPOSITIONATBEGINNINGOFYEAR40,885,68636,368,056 PriorPeriodAdjustment(41,915)-

NETPOSITIONATENDOFYEAR $46,564,11340,885,686 $

CITYOFCIBOLO

COMPARATIVESTATEMENTS OFCASHFLOWS WATER &SEWERFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

CashFlowsFromOperatingActivities:

20252024

CashReceivedFromCustomers18,256,063$17,289,140 $ CashPaidtoSupplierforGoods&Services(12,337,021)(12,038,822) CashPaidforEmployeeSalariesandBenefits(1,533,907)(1,480,065)

NetCashProvided(Used)by

CashFlowsFromNonCapitalandRelated FinancingActivities: MiscellaneousNonCapital14,6062,542

NetCashProvided(Used)byNonCapital FinancingActivities 14,6062,542

CashFlowsFromCapitalandRelated FinancingActivities:

AcquisitionandConstructionofCapitalAssets(1,330,634)(759,142) ProceedsonSaleofCapitalAssets19,850InterestPaidonLong-TermDebt(60,905)(98,943) InterfundBorrowingsforProjects(849,862)598,271 TransfersfromOtherFundsforProjects854,650939,213 TransferstoOtherFundsforProjects(1,324,983)(2,153,213) IssuanceofFinancedPurchase49,473AmortizationofPremiums,Loss,andGainsonRefunding(55,311)(47,503) PrincipalPaidonLong-TermDebt(813,522)(836,985)

NetCashProvided(Used)byCapitaland RelatedFinancingActivities

CashFlowsFromInvestingActivities:

(3,511,244)(2,358,302)

PurchaseofInvestments(2,208,519)(1,066,827) InterestandInvestmentEarnings599,917616,146

NetCashProvided(Used)by InvestingActivities (1,608,602)(450,681)

NetIncrease(Decrease)inCash andCashEquivalents (720,105)963,812

CashandCashEquivalentsatBeginningofYear: CashandCashEquivalents4,605,2473,881,974 RestrictedCashandCashEquivalents940,608700,069 5,545,8554,582,043

CashandCashEquivalentsatEndofYear: CashandCashEquivalents3,817,0024,605,247 RestrictedCashandCashEquivalents1,008,748940,608 $4,825,7505,545,855 $

COMPARATIVESTATEMENTS OFCASHFLOWS(CONTINUED) WATER &SEWERFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

20252024

ReconciliationofOperatingIncome toNetCashProvided(Used)by OperatingActivities: OperatingIncome2,479,701$3,152,735 $ AdjustmentstoReconcileOperating Income(Loss)toNetCashProvided (Used)byOperatingActivities: Depreciation1,050,645910,615 Decrease(Increase)inAssets: Inventories14,67220,727 PrepaidExpenses-21,000 AccountsReceivable(net): CustomerAccounts(70,013)(448,496) Other104,872(119,510) DeferredPensionRelatedOutflows(71,021)58,004 DeferredOPEBRelatedOutflows(1)5,552 DeferredOPEB-RetireeHealthRelatedOutflows(105)(910) Increase(Decrease)inLiabilities: AccountsPayable700,734(64,802) PayrollLiabilities10,14219,176 CustomerDeposits68,140240,539 CompensatedAbsences30,63529,430 NetPensionLiability(49,676)(48,950) OPEBLiability(2,245)6,128 OPEBLiability-RetireeHealth7,5058,277 DeferredPensionRelatedInflows124,4732,362 DeferredOPEBRelatedInflows834(6,814) DeferredOPEB-RetireeHealthRelatedInflows(32,248)(14,810) NetCashProvided(Used)by OperatingActivities $4,367,0443,770,253 $

ScheduleofNon-CashCapitalActivities IncreaseofCapitalAssetsasaresultofRetainagePayable18,091$$

COMPARATIVESTATEMENTS OFNETPOSITION DRAINAGEFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

20252024

ASSETS

CurrentAssets:

CashandCashEquivalents:

Unrestricted164,699$307,724 $ RestrictedInvestments-Water/Sewer714,395542,149

DuefromOtherFunds33,94313,329

AccountsReceivable,NetofAllowance:

CustomerAccounts192,068145,309

TotalCurrentAssets 1,105,1051,008,511

NonurrentAssets:

CapitalAssets: Land893,087893,087

UtilityInfrastructure12,356,04211,222,536

TransportationandEquipment1,391,9481,250,674

ConstructioninProgress11,263,10710,481,390

Less:AccumulatedDepreciation(1,988,157)(1,774,728)

TotalNoncurrentAssets 23,916,02722,072,959

TOTALASSETS 25,021,13223,081,470

DEFERREDOUTFLOWSOFRESOURCES

DeferredPensionRelatedOutflows131,73393,339

DeferredOPEBRelatedOutflows134111

DeferredOPEB-RetireeHealthRelatedOutflows6,1376,091

TOTALDEFERREDOUTFLOWS OFRESOURCES $138,00499,541 $

CITYOFCIBOLO

COMPARATIVESTATEMENTS OFNETPOSITION(CONTINUED) DRAINAGEFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

LIABILITIES

CurrentLiabilities:

20252024

AccountsPayable5,500$26,395 $ PayrollLiabilities50,97433,819

CurrentPortionofCompensatedAbsences20,50312,913

CurrentPortionofLong-TermDebt28,95828,243 CurrentPortionofTotalOPEBLiability1,091CurrentPortionofTotalOPEB-RetireeHealth1,106DuetoOtherFunds1,00025,837

TotalCurrentLiabilities 109,132127,207

NoncurrentLiabilities:

CompensatedAbsences47,84025,828

NetPensionLiability102,586126,079 OPEBLiability10,15910,372

OPEB-RetireeHealthLiability21,16618,937 Long-TermDebt35,81447,317 TotalNoncurrentLiabilities

DEFERREDINFLOWSOFRESOURCES

DeferredPensionRelatedInflows72,7586,362 DeferredOPEBRelatedInflows2,9542,102 DeferredOPEB-RetireeHealthRelatedInflows31,26245,595

TOTALDEFERREDINFLOWS OFRESOURCES 106,97454,059

NETPOSITION

NetInvestmentinCapitalAssets23,851,25521,997,399 Unrestricted874,210773,813

TOTALNETPOSITION$24,725,46522,771,212 $

COMPARATIVESTATEMENTS OFREVENUES,EXPENSES, ANDCHANGES INNETPOSITION DRAINAGEFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

OPERATINGREVENUES

20252024

DrainageFees1,591,587$1,229,468 $ TOTALOPERATINGREVENUES 1,591,5871,229,468

OPERATINGEXPENSES

GeneralandAdministrative45,93242,942 DrainageSystem994,804843,760 Depreciation371,863319,803

178,98822,963

NONOPERATINGREVENUES(EXPENSES) InvestmentEarnings40,85645,032 InterestExpense(8,141)(1,093) ContributedCapital638,8821,332,319 GainonSaleofCapitalAssets96,998Miscellaneous2,415TOTALNONOPERATINGREVENUES(EXPENSES)771,0101,376,258

TRANSFERSANDCONTRIBUTIONS TransfersIn1,276,3412,560,869 TransfersOut(261,426)(235,730) TOTALTRANSFERSANDCONTRIBUTIONS1,014,9152,325,139 CHANGEINNETPOSITION 1,964,9133,724,360

22,771,21219,046,852 PriorPeriodAdjustment(10,660)-

$24,725,46522,771,212 $

COMPARATIVESTATEMENTS OFCASHFLOWS DRAINAGEFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

20252024

CashFlowsFromOperatingActivities: CashReceivedFromCustomers1,544,828$1,200,250 $ CashPaidtoSupplierforGoods&Services(209,142)(200,783) CashPaidforEmployeeSalariesandBenefits(810,560)(669,008)

NetCashProvided(Used)by OperatingActivities 525,126330,459

CashFlowsFromNonCapitalandRelated FinancingActivities: MiscellaneousNonCapital2,415-

NetCashProvided(Used)byNonCapital FinancingActivities 2,415-

CashFlowsFromCapitalandRelated FinancingActivities: AcquisitionandConstructionofCapitalAssets(1,568,144)(2,718,205) ProceedsonSaleofCapitalAssets96,998InterestPaidonLong-TermDebt(8,141)(1,093) InterfundBorrowingsforProjects(45,451)122,138 TransfersfromOtherFundsforProjects1,276,3412,560,869 TransferstoOtherFundsforProjects(261,426)(235,730) IssuanceofLong-TermDebt-48,492 PrincipalPaidonLong-TermDebt(29,353)(21,217)

NetCashProvided(Used)byCapitaland RelatedFinancingActivities (539,176)(244,746)

CashFlowsFromInvestingActivities: PurchaseofInvestments(172,246)(29,533) InterestandInvestmentEarnings40,85645,032

NetCashProvided(Used)by InvestingActivities (131,390)15,499

NetIncrease(Decrease)inCash andCashEquivalents (143,025)101,212

CashandCashEquivalentsatBeginningofYear: CashandCashEquivalents307,724206,512 RestrictedCashandCashEquivalents-307,724206,512

CashandCashEquivalentsatEndofYear: CashandCashEquivalents164,699307,724 RestrictedCashandCashEquivalents-$164,699307,724 $

COMPARATIVESTATEMENTS OFCASHFLOWS(CONTINUED) DRAINAGEFUND FOR THEYEARENDEDSEPTEMBER30,2025AND2024

20252024

ReconciliationofOperatingIncome toNetCashProvided(Used)by OperatingActivities: OperatingIncome178,988$22,963 $ AdjustmentstoReconcileOperating Income(Loss)toNetCashProvided (Used)byOperatingActivities: Depreciation371,863319,803 Decrease(Increase)inAssets: AccountsReceivable(net):

CustomerAccounts(46,759)(29,218) DeferredPensionRelatedOutflows(38,394)(29,698) DeferredOPEBRelatedOutflows(23)2,791 DeferredOPEB-RetireeHealthRelatedOutflows(46)306 Increase(Decrease)inLiabilities:

AccountsPayable(20,895)8,237 PayrollLiabilities17,1553,143 CompensatedAbsences29,60210,944 NetPensionLiability(23,493)(21,362) OPEBLiability8781,552 OPEBLiability-RetireeHealth3,3351,772 DeferredPensionRelatedInflows66,39656,044 DeferredOPEBRelatedInflows852(3,714) DeferredOPEB-RetireeHealthRelatedInflows(14,333)(13,104)

NetCashProvided(Used)by

$525,126330,459 $

CITY

CIBOLO COMBININGSTATEMENTOFNETPOSITION NONMAJORPROPRIETARYFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 DrainageWaterSewer ImpactImpactImpact FundFundFundTotal

ProprietaryFunds

ASSETS

CashandCashEquivalents1,709,538$4,309,420$551,000 $$6,569,958 Investments2,340,0851,419,5883,522,0427,281,715

AccountsReceivable,NetofAllowance:

4,268 DuefromOtherFunds5,445127,46763,488196,400 TOTALASSETS$4,055,7555,859,369$4,137,217 $$14,052,341 LIABILITIESANDFUNDBALANCE

Liabilities: AccountsPayable39,127$90,640$47,766 $$177,533

13,874,808

ProprietaryFunds

CITYOFCIBOLO

COMBININGSTATEMENTOFCASHFLOWS NONMAJORPROPRIETARYFUNDS FOR THEYEARENDEDSEPTEMBER30,2025 DrainageWaterSewer ImpactImpactImpact FundFundFund

ProprietaryFunds

CashFlowsFromOperatingActivities: CashReceivedFromCustomers402,065$294,855$197,538 $$894,458 CashPaidtoSupplierforGoods&Services25,96835,62421,964

CashPaidforEmployeeSalariesandBenefits---

CashFlowsFromCapitalandRelated FinancingActivities: InterfundBorrowingsforProjects(1,139)(120,977)(56,035)(178,151) TransferstoOtherFundsforProjects(132,884)(662,101)(137,505)(932,490) NetCashProvided(Used)byCapitaland

CashFlowsFromInvestingActivities: PurchaseofInvestments(548,872)-(462,149)(1,011,021) SalesofInvestments-348,827-

NetIncrease(Decrease)inCash andCashEquivalents (92,413)154,889(266,449)(203,973) CashandCashEquivalentsatBeginningofYear:

$1,709,5384,309,420$551,000 $$6,569,958

CITYOFCIBOLO

COMBININGSTATEMENTOFCASHFLOWS (CONTINUED) NONMAJORPROPRIETARYFUNDS FOR THEYEARENDEDSEPTEMBER30,2025

ReconciliationofOperatingIncome toNetCashProvided(Used)by OperatingActivities:

AdjustmentstoReconcileOperating Income(Loss)toNetCashProvided (Used)byOperatingActivities: Decrease(Increase)inAssets: AccountsReceivable(net):

Increase(Decrease)inLiabilities:

CITYOFCIBOLO BALANCESHEET

DISCRETELYPRESENTEDCOMPONENTUNIT FOR THEYEARENDEDSEPTEMBER30,2025

ASSETS

Economic Development Corporation

Investments3,710,696 $

AccountsReceivables(netofallowances): Other227,200

TOTALASSETS$3,937,896

LIABILITIES,DEFERREDINFLOWSOF RESOURCESANDFUNDBALANCES

Liabilities: AccountsPayable25,148

AccruedExpenditures463,286

TotalLiabilities 488,434

FundBalances: Unassigned3,449,462

TotalFundBalances 3,449,462

TOTALLIABILITIES,DEFERRED INFLOWSOFRESOURCES ANDFUNDBALANCES

$3,937,896

CITYOFCIBOLO RECONCILATIONOFTHE DISCRETELYPRESENTEDCOMPONENTUNIT BALANCESHEETTOTHESTATEMENTOFNETPOSITION FOR THEYEARENDEDSEPTEMBER30,2025

TOTALFUNDBALANCE-TOTALGOVERNMENTALFUNDS3,449,462 $

AmountsreportedforgovernmentalactivitiesintheStatementofNetPosition aredifferentbecause:

CapitalAssetsusedingovernmentalactivitiesarenotfinancialresources and,therefore,arenotreportedinthefunds.3,658,964

Long-termliabilities,includingbondspayableandrelatedpremiums,arenotdue andpayableinthecurrentperiodandtherefore,notreportedinthefunds:

BondsPayable(3,143,000) AccruedInterestPayable(10,681)(3,153,681)

TOTALNETPOSITION-GOVERNMENTALACTIVITIES3,954,745 $

CITYOFCIBOLO

STATEMENTOFREVENUES,EXPENDITURES,AND CHANGES INFUNDBALANCE –DISCRETELYPRESENTEDCOMPONENTUNIT FOR THEYEARENDEDSEPTEMBER30,2025

Economic Development Corporation

REVENUES

SalesTaxes1,358,803 $ InvestmentEarnings146,071 TOTALREVENUES1,504,874

EXPENDITURES

Current: Administration875,095 DebtService: Principal252,000 Interest66,655

TOTALEXPENDITURES1,193,750

Excess(Deficiency)ofRevenues Over(Under)Expenditures311,124

FundBalancesatBeginningofYear3,138,338

FundBalancesatEndofYear$3,449,462

CITYOFCIBOLO

RECONCILATIONOFTHESTATEMENTOFREVENUES, EXPENDITURES,ANDCHANGFES INFUNDBALANCES OF THEDISCRETELYPRESENTEDCOMPONENTUNITTO STATEMENTOFACTIVITIES

FOR THEYEARENDEDSEPTEMBER30,2025 NETCHANGEINFUNDBALANCES-GOVERNMENTALFUNDS311,124 $

AmountsreportedforgovernmentalactivitiesintheStatementofActivities aredifferentbecause:

Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthestatement ofactivitiesthecostofthoseassetsisallocatedovertheirestimatedusefullivesand reportedasdepreciationexpense.

DepreciationExpense(4,500)

Theissuanceoflong-termdebt(e.g.bonds,leases)providescurrentfinancialresources togovernmentalfunds,whichtherepaymentoftheprincipaloflong-termdebtconsumes thecurrentfinancialresourcesofgovernmentalfunds.Neithertransaction,however,has anyaffectonnetposition.Thisamountistheneteffectofthesedifferencesinthe treatmentoflong-termdebtandrelateditems.

PrincipalRepayments252,000

SomeexpensesreportedintheStatementofActivitiesdonotrequiretheuseof currentfinancialresourcesand,therefore,arenotreportedasexpendituresin governmentalfunds:

CHANGEINNETPOSITION-GOVERNMENTALACTIVITIES559,480 $

This part of the City of Cibolo's annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary informationsaysabouttheCity'soverall financial health.

Financial Trends (Tables 1 through 4)

Net PositionbyComponent

ChangeinNetPosition

FundBalances, Governmental Funds

ChangesinFundBalances,Governmental Funds

These schedules contain trend information to help reader understand how the City's financial performance andwell-beinghave changedovertime.

Revenue Capacity (Tables 5 through 12)

TaxRevenuesbySource, GovernmentalFunds

AssessedValueandEstimatedActualValueofTaxableProperty

Direct andOverlappingPropertyTaxRates

PrincipalPropertyTaxpayers

Property TaxLeviesandCollections

TotalWaterSoldbyTypeofCustomer WaterandSewerRates

TaxableAssessed Value

These schedulescontaininformationtohelpreaders assessthe factors affectingthe City’sability to generate its property and salestax.

Debt Capacity (Tables 13 through 17)

RatiosofOutstandingDebtbyType

RatiosofGeneral BondedDebtOutstanding

Direct andOverlappingGovernmental ActivitiesDebt

Debt MarginInformation

PledgedRevenueCoverage

These schedules present information to help the reader assess the affordability of the City's current levelsof outstandingdebt andthe City'sability toissue additional debt inthe future.

Demographic and Economic Information (Tables 18 through 19)

DemographicandEconomicStatistics

Principal Employers

These schedules offer demographic and economic indicators to help the reader understand how the City’s financial activities take place and to help make comparisons over time and with other governments.

Operating Information (Tables 20 through 22)

Full-timeEquivalent CityGovernmentEmployeesbyFunction

OperatingIndicators byFunction/Program

Capital AssetStatisticsbyFunction/Program

These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides and the activitiesit performs.

NetInvestmentinCapitalAssets14,017,679

Unrestricted8,565,2797,475,7856,990,5845,507,489

Note – Years 2016 – 2017 have not been restated for adoption of GASB Statement No. 75. Years 20162024 have not been restated for adoption of GASB Statement No. 101.

FiscalYear

202020212022202320242025

$27,468,17527,937,597$32,684,485$33,159,591$38,010,481$42,392,766 $ 5,187,1336,157,5096,707,3928,581,3612,682,8293,133,160 3,413,6024,544,0238,558,9057,475,55713,379,30213,773,045

$36,068,91038,639,129$47,950,782$49,216,509$54,072,612$59,298,971 $

$34,560,93638,038,606$45,307,722$47,244,973$53,630,160$59,394,282 $ 9,015,6658,072,1418,934,61912,367,71814,188,99414,733,288 2,649,0454,073,9384,088,7367,372,6309,210,36211,036,816

$46,225,64650,184,685$58,331,077$66,985,321$77,029,516$85,164,386 $

$62,029,11165,976,203$77,992,207$80,404,564$91,640,641$101,787,048 $ 14,202,79814,229,65015,642,01120,949,07916,871,82317,866,448 6,062,6478,617,96112,647,64114,848,18722,589,66424,809,861

$82,294,55688,823,814$106,281,859$116,201,830$131,102,128$144,463,357 $

Expenses

GovernmentalActivities

Administration1,516,455$1,712,892$1,864,408$2,256,734 $ PublicSafety3,742,3304,086,4824,033,0504,488,322 PublicWorks3,277,4343,314,0343,833,3234,603,660 InformationTechnologyOffice216,050245,202460,712514,524 ParksandRecreation736,130774,7531,154,7361,574,101 FireDepartment1,983,5412,168,3972,530,9412,887,686 AnimalControl175,037221,364227,919223,468 Interest1,399,3341,450,8361,225,9301,568,835

TotalGovernmentalActivitiesExpenses13,046,31113,973,96015,331,01918,117,330

Business-TypeActivities

Water,Sewer&Drainage9,887,94610,070,73210,747,26311,377,596 Interest301,108288,794267,348649,556

TotalBusiness-TypeActivities10,189,05410,359,52611,014,61112,027,152

ProgramRevenues

GovernmentalActivities

ChargesforService: Administration-

PublicSafety380,504507,047465,031607,864 PublicWorks2,596,9662,478,4182,405,3263,053,586 ParksandRecreation257,196319,434250,126252,161 FireDepartment18,98725,41522,35620,024 AnimalControl31,42329,23130,10830,108 OperatingGrantsandContributions32,00220,115281,565260,732 CapitalGrantsandContributions421,1212,137,311748,6714,416,848

TotalGovernmentalActivities ProgramRevenues 3,738,1995,516,9714,203,1838,641,323

Business-TypeActivities

ChargesforService:

Water,Sewer&Drainage11,161,66812,129,14612,324,91314,190,388 OperatingGrantsandContributions---CapitalGrantsandContributions276,509622,688588,4144,885,871

TotalBusiness-TypeActivities ProgramRevenues 11,438,17712,751,83412,913,32719,076,259

TotalPrimaryGovernment ProgramRevenues15,176,376$18,268,805$17,116,510$27,717,582 $ FiscalYear

Note – Years 2016 – 2017 have not been restated for adoption of GASB Statement No. 75. Years 20162024 have not been restated for adoption of GASB Statement No. 101.

FiscalYear

$2,538,5462,725,206$3,557,035$5,688,363$5,130,408$6,665,084 $ 4,563,5794,572,0804,358,5245,024,6686,057,6275,606,851 4,298,2614,552,7265,175,6037,789,3838,392,3517,861,438 507,297824,0551,007,0921,181,9161,221,3191,746,260 1,687,8151,718,1791,819,7442,048,8232,066,3462,449,924 3,081,1143,383,4743,743,5114,888,1225,904,1086,494,302 158,941262,182267,642368,638423,927499,304 1,536,2891,685,2781,455,7471,562,2491,777,5432,135,098 18,371,84219,723,18021,384,89828,552,16230,973,62933,458,261 12,374,97113,452,92513,300,35515,232,21415,729,75717,098,692 ----100,03669,046 12,374,97113,452,92513,300,35515,232,21415,829,79317,167,738 $30,746,81333,176,105$34,685,253$43,784,376$46,803,422$50,625,999 $ $--$7,367$28,864$-$$ 562,318638,282644,088779,888361,721255,456 2,443,5203,294,6353,982,8585,345,3823,495,6712,819,103 128,840243,887302,568344,659270,065250,231 17,44822,9107,26951,1923,8676,612 30,108--95,00060,80853,312 928,556852,8762,440,7301,280,0431,657,1382,728,738 2,021,6841,271,2014,908,847788,1902,946,3682,252,629

6,132,4746,323,79112,293,7278,713,2188,795,6388,366,081 14,299,33315,924,47917,302,45420,567,58120,733,76220,601,213 -----114,241 5,279,6861,382,3322,737,564743,0623,492,7413,662,147 19,579,01917,306,81120,040,01821,310,64324,226,50324,377,601 $25,711,49323,630,602$32,333,745$30,023,861$33,022,141$32,743,682 $

FiscalYear

Net(Expenses)/Revenue

GovernmentalActivities(9,308,112)$(8,456,989)$(11,127,836)$(9,476,007) $ Business-TypeActivities1,249,1232,392,3081,898,7167,049,107

TotalPrimaryGovernmentNetExpenses(8,058,989)$(6,064,681)$(9,229,120)$(2,426,900) $

GovernmentalRevenuesandOther

ChangesinNetPosition GovernmentalActivities Taxes:

PropertyTaxes7,396,959$7,841,537$8,466,785$8,883,289 $ SalesTaxes1,212,7981,609,4531,941,6322,472,260 FranchiseTaxes870,923951,269912,443872,398 OccupancyTaxes----

InterestandInvestmentEarnings91,047196,395331,713516,277 Miscellaneous19,68128,89741,84452,937 Transfers(286,226)(32,096)(37,153)198,181

TotalGovernmentalActivities9,305,18210,595,45511,657,26412,995,342

Business-TypeActivities

InterestandInvestmentEarnings56,64695,434108,136180,642 Miscellaneous10,5647,6475,3468,927 Gain(Loss)onSaleofAssets338,2339583,8537,357 Transfers286,22632,09637,153(198,181)

TotalBusiness-TypeActivities691,669136,135154,488(1,255)

TotalPrimaryGovernment9,996,851$10,731,590$11,811,752$12,994,087 $

ChangesInNetPosition

GovernmentActivities(2,930)$2,138,466$529,428$3,519,335 $ Business-TypeActivities1,940,7922,528,4432,053,2047,047,852

TotalPrimaryGovernment1,937,862$4,666,909$2,582,632$10,567,187 $

Note – Years 2016 – 2017 have not been restated for adoption of GASB Statement No. 75. Years 20162024 have not been restated for adoption of GASB Statement No. 101.

FiscalYear

TABLE2(Continued) 202020212022202320242025

$(12,239,368)(13,399,389)$(9,091,171)$(19,838,944)$(22,177,991)$(25,092,180) $ 7,204,0483,853,8866,739,6636,078,4298,396,7107,209,863 $(5,035,320)(9,545,503)$(2,351,508)$(13,760,515)$(13,781,281)$(17,882,317) $ $9,933,67311,263,485$11,444,742$13,002,392$16,042,946$18,110,464 $ 2,717,6453,312,7203,931,5434,940,0206,117,9036,881,371 865,0821,368,4811,081,4731,239,7301,385,1241,459,675 ----19,1035,770 742,358492,35060,757289,0122,021,3111,650,993 161,948220,888317,333122,5641,770,8092,391,807 220,923(169,899)(885,229)(1,294,402)(323,102)387,908 14,641,62916,488,02515,950,61918,299,31627,034,09430,887,988 278,461148,84221,663112,3271,321,8411,231,621 -15,941--2,54217,021 82410,821---116,848 (220,923)169,899885,2291,294,402323,102(387,908) 58,362345,503906,8921,406,7291,647,485977,582 $14,699,99116,833,528$16,857,511$19,706,045$28,681,579$31,865,570 $

$2,402,2613,088,636$6,859,448$(1,539,628)$4,856,103$5,795,808 $ 7,262,4104,199,3897,646,5557,485,15810,044,1958,187,445 $9,664,6717,288,025$14,506,003$5,945,530$14,900,298$13,983,253 $

Committed87,73381,97882,85963,371 Unassigned--(3,069)(5,701) TotalAllOtherGovernmentalFunds

202020212022202320242025

$17,83250,002$46,167$34,856$52,309$42,041 $ 542,041589,856626,478106,400106,400106,400 7,115,1168,566,6927,444,2186,320,0306,971,7186,743,600

$7,674,9899,206,550$8,116,863$6,461,286$7,130,427$6,892,041 $

$5,763-$-$-$25,564$25,254 $ 29,601,93928,587,87322,586,80317,019,04014,884,70524,617,208 376,177198,9734,532,1564,718,2592,937,9242,600,338 ----17,74912,334

$29,983,87928,786,846$27,118,959$21,737,299$17,865,942$27,255,134 $ FiscalYear

REVENUES

PropertyTaxes7,885,070$8,508,971$8,923,319$9,942,691 $ NonpropertyTaxes2,511,1392,800,5853,291,6853,642,990 Grants/Intergovernmental3,15078,396188,480170,327 ChargesforServices3,174,6573,781,5933,105,2123,617,249 Other472,823655,626843,0171,280,062 TOTALREVENUES14,046,83915,825,17116,351,71318,653,319

EXPENDITURES

Current: Administration1,530,8981,730,9751,855,5182,038,139 PublicSafety3,442,8723,752,6033,725,6704,016,342 PublicWorks1,751,7792,041,3662,111,0552,710,079 InformationTechnologyOffice218,367236,315454,461500,166 ParksandRecreation588,483684,373817,987811,820 FireDepartment1,802,1711,993,4862,237,9532,428,151 AnimalControl166,650211,108214,538205,172 CapitalOutlay 1,062,35711,403,7176,577,2926,732,336 DebtService: Principal1,861,7182,182,4222,654,1582,888,871 Interest1,500,1461,492,3541,722,9851,547,014 TOTALEXPENDITURES13,925,44125,728,71922,371,61723,878,090

Excess(Deficiency)ofRevenues Over(Under)Expenditures121,398(9,903,548)(6,019,904)(5,224,771)

OTHERFINANCING SOURCES(USES) TransfersIn--198,181220,923 TransfersOut(32,096)(37,153)-IssuanceofDebt3,455,0002,674,93611,815,00014,185,000 PaymenttoEscrowAgent---PremiumsonIssuanceofDebt148,345-102,6832,110,948 SaleofCapitalAssets12,0093,90315,522959 TOTALOTHERFINANCING SOURCES(USES)3,583,2582,641,68612,131,38616,517,830

NETCHANGEINFUNDBALANCE$3,704,656(7,261,862)$6,111,482$11,293,059 $

DebtServiceasaPercentageof

FiscalYear

4 202020212022202320242025

$11,244,54511,434,295$13,148,228$14,597,404$16,010,219$18,052,491 $ 4,681,2015,013,0176,262,9246,953,9577,522,1308,346,816 794,2141,472,7682,323,4161,219,2142,564,4834,476,413 2,633,4693,738,8283,691,8535,126,8123,377,7642,492,932 1,396,345982,0846,109,5783,877,0254,068,8372,949,209 20,749,77422,640,99231,535,99931,774,41233,543,43336,317,861 2,347,6212,592,9564,445,8865,443,3464,785,4125,271,713 4,111,4693,948,9314,323,0774,632,5185,509,9545,865,020 2,121,4142,331,3502,982,5855,092,1515,143,8754,763,319 500,209828,3321,013,869948,3501,189,6101,623,349 855,075889,6381,001,1951,214,8441,176,7661,163,897 2,640,6852,887,5643,530,3424,399,8925,268,1985,734,860 247,173249,640261,799347,260406,522434,983 3,243,11811,783,1409,604,84512,425,66215,320,1729,527,309 3,243,2903,654,2924,152,4675,347,5376,109,8465,886,987 1,689,6861,986,9641,872,3641,826,5162,011,1662,305,784 20,999,74031,152,80733,188,42941,678,07646,921,52142,577,221

(249,966)(8,511,815)(1,652,430)(9,903,664)(13,378,088)(6,259,360) ----2,662,6672,576,010 (169,899)(885,229)(1,294,402)(2,307,226)(2,985,769)(2,188,102) 5,000,0007,511,73113,956,7874,759,1129,764,45013,928,892 (5,288,313)-(12,089,446)--1,011,262699,834927,368364,722723,639750,692 97,26718,989106,18949,8098,753342,674 650,3177,345,3251,606,4962,866,41710,173,74015,410,166 $400,351(1,166,490)$(45,934)$(7,037,247)$(3,204,348)$9,150,806 $ 27.8%29.1%25.5%24.5%25.7%24.8%

20167,885,070$1,609,453$-$901,686$10,396,209 $ 20178,508,9711,941,632-858,95311,309,556 20188,923,3192,472,260-819,42512,215,004 201910,002,9542,717,645-865,08213,585,681 202011,244,5453,312,720-1,368,48115,925,746 202111,434,2963,931,543-1,081,47316,447,312 202213,148,2284,940,020-1,322,90419,411,152 202314,597,4045,638,111-1,315,84621,551,361 202416,010,2196,117,90319,1031,385,12423,532,349 202518,052,4916,881,3715,7701,459,67526,399,307

ASSESSEDVALUEANDESTIMATEDACTUALVALUEOFTAXABLEPROPERTY LASTTENFISCALYEARS

TotalTaxableTotal FiscalAssessedDirect YearValueTaxRate

20161,800,977,238$0.445400

20171,949,275,2520.445400

20182,047,409,4760.447400

20192,199,975,8540.447400

20202,328,871,9590.467400

20212,469,568,4490.493500

20222,782,246,0690.483500

20233,184,762,6020.483500

20243,653,477,9120.469900

20254,215,994,9750.499000

Source: Guadalupe County Appraisal Districts

NOTES: Property in the City of Cibolo is reassessed every year at estimated actual value. For this reason, assessed value is equal to estimated actual value. Tax rates are per $100 of assessed value. Total taxable assessed value is before any applicable freeze adjustments.

CityDirectRates

OverlappingRates

SchertzCibolo-

Source: Guadalupe County Tax Offices

NOTE: Overlapping rates are those of local and county governments that apply within the City of Cibolo. Not all overlapping rates apply to all City of Cibolo property owners.

PRINCIPALPROPERTYTAXPAYERS CURRENTYEARANDNINEYEARS AGO TABLE8

PercentagePercentage ofof TotalCityTotalCity TaxableTaxableTaxableTaxable AssessedAssessedAssessedAssessed TaxpayerValueRankValueValueRankValue

AisinTexasCorporations154,859,964$13.67%-GrandatCiboloLLC28,667,63120.68%-SantikosCiboloTheaterRealty25,996,72830.62%-CSLCibolo2018LLC22,300,00040.53%-IndependentRoughTerrainCenter15,285,03850.36%-DHIR-SanAntonioLLC14,914,65660.35%-USLivingCiboloLLC14,797,98670.35%-GaudalupeValleyElectricCo-Op13,560,89780.32%8,148,10140.45% LibertyOilfieldServices12,783,78290.30%-HEBLP10,989,016100.26%-SanjelCapitalUSAInc.--77,448,45714.30% KalmarRTCenterLLC--23,622,56621.31% SanjelUSAInc.--9,627,30830.53% KalmarRTCenterLLC--6,484,42250.36% Wal-MartRealEstateBusinessTrust--3,683,09860.20% BabcockRoad165LTD--3,553,00070.20% MeritageHomesofTexasLLC--3,336,90380.19% ShiraziLLC--3,322,33390.18% MacBainProperties(Texas)Inc.--3,122,029100.17% TOTALS314,155,698$7.45%142,348,217$7.89%

TOTALTAXABLE ASSESSEDVALUE4,215,994,975$1,800,977,238 $ 20252016

Source: Guadalupe County Appraisal District

FiscalYearofLevy CollectedWithinTotalCollections ToDate

FiscalYearTaxesLeviedCollectionsIn Endedforthe%ofSubsequent%of September30,FiscalYearAmountLevyYearsAmountLevy

20167,813,886$7,782,605$99.60%28,220$7,810,825$99.96% 20178,215,4468,178,80699.55%32,0038,210,80999.94% 20188,792,7118,751,22799.53%34,3388,785,56599.92% 20199,846,8569,793,14299.45%46,4539,839,59599.93% 202010,846,91910,790,80599.48%49,01110,839,81699.93% 202111,412,54411,363,38899.57%41,67311,405,06199.93% 202212,854,76612,767,61499.32%74,94412,692,67098.74% 202314,514,84714,434,74199.45%58,20614,434,74199.45% 202416,044,17215,957,37999.46%49,50215,957,37999.46% 202518,079,65317,941,44499.24%-17,941,44499.24%

Source: Guadalupe County Appraisal District

TypeofCustomer20162017201820192020

Residential406,146,300411,827,601402,408,300413,902,200458,065,300 Commercial52,740,00051,617,86267,559,45772,205,24199,765,607

Total458,886,300463,445,463469,967,757486,107,441557,830,907

TypeofCustomer20212022202320242025

Residential462,705,600524,612,800576,993,900567,121,000571,357,600 Commercial98,512,963134,135,600157,047,207170,356,446164,204,402 Total561,218,563658,748,400734,041,107737,477,446735,562,002

Source: Cibolo Water Department.

2019basedonmetersize5.5020.004.95

2020basedonmetersize5.5020.004.95

2021basedonmetersize5.5020.004.95

2022basedonmetersize5.5020.004.95

2023basedonmetersize5.7521.755.10

2024basedonmetersize5.9522.515.95

2025basedonmetersize6.1923.195.44

CITYOFCIBOLO

TAXABLEASSESSEDVALUE LASTTENFISCALYEARS (UNAUDITED)

12 Less:TotalTaxableTotal

FiscalResidentialCommercialIndustrialTax-ExemptAssessedDirect YearPropertyPropertyPropertyPropertyValueTaxRate

20161,699,908,610$206,871,658$107,391,598$213,194,628$1,800,977,238$0.445400

20171,898,749,628190,596,308128,627,992268,698,6761,949,275,2520.445400

20182,065,833,194170,856,737171,698,933360,979,3882,047,409,4760.447400

20192,232,474,629215,447,640298,843,488546,789,9032,199,975,8540.447400

20202,391,987,324177,191,534364,242,243604,549,1422,328,871,9590.467400

20212,596,006,661204,537,976352,793,929683,770,1172,469,568,4490.493500

20222,882,809,847246,377,253530,390,151877,331,1822,782,246,0690.483500

20233,744,976,405298,418,156719,054,8721,577,686,8313,184,762,6020.483500

20244,150,242,047344,619,0661,057,511,8571,898,895,0583,653,477,9120.469900

20254,595,072,299365,398,0491,255,938,1022,000,413,4754,215,994,9750.499000

GeneralBondedDebtOutstanding

AvailablePercentageof GeneralCertificatesTaxinDebtActualTaxable FiscalObligationofAnticipationServiceValueofPer YearBondsObligationNotesFundTotalPropertyCapita

201641,693,081$100,000$-$408,535$42,201,616$2.16%1,493 201739,575,775200,000-419,88640,195,6611.96%1,346 201841,131,1631,900,000-548,24043,579,4031.98%1,442 201949,336,3676,876,729-687,98956,901,0852.44%1,780 202046,376,8186,737,893-837,51953,952,2302.18%1,667 202141,180,00012,760,000-913,95454,853,9541.97%1,639 202237,430,00012,335,0002,135,0001,134,41653,034,4161.67%1,487 202333,785,00016,320,0001,795,0001,298,79053,198,7901.46%1,482 202430,055,00022,345,2731,450,0001,143,67154,993,9441.51%1,512 202528,700,00031,861,2301,095,0001,198,60362,854,8331.49%1,662

NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. See Table 6 for the City's property tax value data. City population data can be found in Table 18.

RATIOS OFDEBTOUSTANDINGBYTYPE

CURRENTYEAR

GeneralCertificatesTaxSubscription FiscalObligationofAnticipationBasedITCapital YearBondsObligationNotesAgreementsLease

201641,693,081$100,000$-$-$212,092 $ 201739,575,775200,000--809,671 201841,131,1631,900,000--630,490 201949,336,3676,876,729--759,421 202046,376,8186,737,893--1,123,201 202141,180,00012,760,000--1,295,639 202237,430,00012,335,0002,135,000-1,199,959 202333,785,00016,320,0001,795,000536,221764,770 202430,055,00022,345,2731,450,000248,2371,552,084 202528,700,00031,861,2301,095,000-1,918,031

NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. See Table 6 for the City's property tax value data. City population data can be found in Table 18.

Business-TypeActivities

GeneralTotalPercent

RevenueObligationCapitalPrimaryofGrossPer BondsBondsLeaseGovernmentIncomeCapita

$8,442,8601,923,664$172,708$52,544,405$5.86%1,493

7,944,8691,777,87773,77250,381,964$5.20%1,346

7,436,8781,622,090-52,720,6215.38%1,442

8,447,3541,461,30383,19866,964,3726.49%1,780

7,855,6901,300,514125,97163,520,0875.16%1,667

6,410,0001,070,000106,43962,822,0785.37%1,639

5,835,000905,000167,77560,007,7344.30%1,487

5,240,000735,000127,28259,303,2734.19%1,482 4,664,727560,000134,08961,009,4104.08%1,512 4,043,770380,000141,64468,139,6754.56%1,662

14

TABLE15 Estimated EstimatedShareof DebtPercentageOverlapping GovernmentalUnitOutstandingApplicable*Debt

Debtrepaidwithpropertytaxes:

GuadalupeCounty5,405,000$18.69%1,010,195 $ MarionIndependentSchoolDistrict104,125,00029.84%31,070,900 Schertz-Cibolo-UniversalCityISD299,475,61237.59%112,572,883

Subtotal,OverlappingDebt144,653,977

TOTALNETOVERLAPPINGDEBT $213,607,145

NOTES:The overlapping debt was received from the Municipal Advisory Council of Texas. Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.

*Overlapping debt is the proportionate share of the debts of local jurisdictions located wholly or in part within the limits of the City of Cibolo. This schedule is intended to demonstrate the total debt that the City of Cibolo property tax payers will be expected to repay. The amount of debt applicable to the City of Cibolo is computed by (a) determining what portion of total assessed value of the overlapping jurisdiction lies within the limits of the City and (b) applying this percentage to the total governmental activities debt of the overlapping jurisdiction.

debtlimitforcities;however,throughaccepted practiceapractical"economic"debtlimitis consideredtobe10%oftheassessedvalue.421,599,498

WaterRevenueBonds

FiscalServiceOperatingAvailable YearChargesExpensesRevenuePrincipalInterestCoverage

202519,744,651$17,085,962$2,658,689$600,957$60,905$4.02

202418,846,07515,670,3773,175,698750,27398,9433.74 202316,218,08313,148,1153,069,968765,000201,4503.18 202214,552,92911,422,3863,130,543740,000221,9463.25 202113,053,15111,264,8171,788,334570,000250,9602.18 202012,721,31110,750,3251,970,986560,000259,8192.40 201911,621,56410,357,2591,264,305645,000279,2821.37 201810,760,2439,573,1781,187,065630,000270,6761.32 201710,278,9129,102,8971,176,015610,000315,9671.27 20169,663,6818,908,512755,169655,000337,8970.76

NOTE: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Operating expenses do not include depreciation, interest, amortization or joint venture expenses.

FiscalYearPopulation

201628,259896,742,84731,733$14.390,66534.8 201729,861968,780,42332,44314.291,82734.4 201830,225979,773,60032,41614.292,77333.7 201931,9681,032,246,72032,29014.387,96734.6 202032,3571,231,022,06538,04514.3101,19734.5 202133,4751,169,315,22534,93114.2102,10934.4 202235,6621,397,023,18839,17414.2106,18834.3 202335,8991,415,138,58039,42014.2116,51036.1 202436,3741,493,516,44041,06014.2125,23039.5 202537,8151,642,343,26543,43114.2125,14837.9

Sources: Population, personalincome, medianage andeducation levelinformationareprovidedby theUnited States Census Bureau. School enrollment information is provided by the Northside Independent School District. Unemployment data is provided by the Texas Workforce Commission.

15,4604.0%96.0%41.1% 15,5303.2%96.0%38.6%

15,8173.3%98.0%39.4%

15,7003.1%96.0%40.6%

15,9258.0%98.0%40.8%

15,6734.6%94.1%39.1%

15,8903.6%93.5%38.4%

15,5284.6%94.9%38.8%

15,5283.9%93.1%40.1%

14,7694.1%93.1%40.7%

Source:CiboloEconomicDevelopmentCorporation 20252016

Function

GeneralGovernment

Full-TimeEquivalentEmployeesasofSeptember30,

2016201720182019202020212022202320242025

CityManager2.02.02.03.03.03.04.04.04.04.0

CitySecretary2.02.02.02.02.02.03.03.03.03.0

Finance3.04.03.03.03.03.03.05.05.05.0

HumanResources1.01.52.52.52.52.53.05.05.05.0

InformationTechnology2.02.02.02.02.02.03.05.05.05.0

PublicSafety

Police:

Officers35.536.536.540.542.542.543.044.049.052.0

Civilians3.23.43.43.43.43.43.43.43.43.4

Court2.02.02.02.02.02.02.02.02.02.0

FireDepartment

FirefightersandOfficers17.420.420.424.428.432.436.438.438.438.4 Civilians0.00.00.00.00.00.01.01.01.01.0

PublicWorks

PlanningandDevelopment11.510.510.510.512.513.014.012.09.09.0 Maintenance&Admin13.715.515.516.518.018.019.020.023.023.0

AnimalControl3.03.53.53.54.54.54.55.55.55.5

EconomicDevelopment2.02.02.02.03.03.02.02.02.02.0 Parks10.910.010.011.012.012.012.011.511.511.5

Water&Sewer

Administration3.03.03.03.04.04.04.04.04.04.0

Maintenance&Operations11.413.013.013.012.512.015.015.017.017.0

Drainage6.56.08.08.08.08.08.010.010.012.0

TOTAL130.0137.3139.3150.3163.3167.3180.3190.8197.8202.8

Source: CityAdoptedBudgets

Note Full-timeequivalentisbasedontheschedulehoursofpositionstoa40hourworkweek.

CITYOFCIBOLO

OPERATINGINDICATORSBYFUNCTION/PROGRAM LASTTENFISCALYEARS

GeneralGovernment

Buildingpermitsissued424.0315.0334.0369.0305.0 CodeEnforcementViolationsunavailable328.0270.0295.0326.0

Police#

Activities*18,620.017,654.025,945.021,685.021,970.0 CustodialArrests221.0167.0138.0249.0226.0 TrafficCitations1,094.01,370.01,305.01,412.0731.0 TrafficCollisions302.0301.0287.0350.0320.0 Indexcrimes358.0419.0450.0528.0562.0 Averageresponsetime3:494:09unavailableunavailable2:51

Fire

Numberoffireresponses83.0158.01,112.091.0108.0 Numberofrescue/EMSresponses963.0983.01,167.01,329.01,479.0 Numberofothercallsforservice229.0379.0608.0836.0408.0 Numberoffalsealarms91.098.0105.0160.0141.0 Hazardouscondition32.035.054.064.047.0 Severeweather/naturaldisaster5.03.02.03.01.0 Totalcallsforservice1,403.01,656.02,048.02,483.02,707.0 Averageresponsetime7:107:427:076:587:40 Numberoftraininghours3,280.02,707.02,187.06,920.04,441.0 Hoursofpubliceducation/relations159.0347.0303.086.4-

Court

Newcasesfiled(calendaryear)

AnimalServices

1,286.01,812.01,751.01,838.01,070.0

Dispositions(calendaryear) 1,356.01,719.01,446.01,803.01,098.0

Numberofanimalsadopted(calendaryear)96.0158.0120.0126.082.0

Numberofanimalsimpounded(calendaryear)440.0460.0509.0527.0442.0

Water

NewConnections20.011.0123.073.0116.0

Totalconsumption458,886,300.0463,445,463.0469,967,757.0498,197,777.0557,830,907.0

Averagedailyconsumption1,257,222.01,269,713.61,287,582.91,364,925.01,528,303.0

Peakdailyconsumption3,099,000.03,442,000.04,579,170.03,184,000.04,653,000.0

Totalresidentialcustomers5,230.05,218.05,323.05,390.05,467.0

Totalcommercialcustomers188.0211.0229.0235.0274.0

Averageuseperconnection84,696.085,365.084,648.088,568.097,166.0 Rainfall47.59"31.48"41.20"22.02"23.59"

Sewer

Totalresidentialcustomers8,229.08,586.08,946.09,339.09,651.0

Totalcommercialcustomers121.0136.0147.0160.0167.0

NewConnections388.0357.0371.0406.0319.0

#policestatisticsareforcalendaryearperiod

*includescallsforserviceandselfinitiatedactivities

FiscalYear Source: VariousCityDepartments.

FiscalYear

20212022202320242025

509.0350.0413.0289.0171.0 467.0387.0950.01,366.0725.0

18,146.019,902.024,054.025,450.024,495.0 166.0139.0165.0188.0232.0 2,137.02,023.01,042.02,729.01,173.0 673.0751.0844.0921.0573.0 1,369.01,978.01,726.01,671.0294.0 unavailableunavailableunavailableunavailable6:18

96.0142.0135.0289.0102.0 1,729.02,046.02,487.02,237.02,810.0 497.0455.0300.0282.0882.0 271.0222.02,985.012.0342.0 74.051.078.025.068.0 5.03.03.02.06.0

3,343.03,661.04,366.04,369.05,089.0 6:566:426:186:306:30 6,051.06,865.07,057.55,794.015,814.6 70.359.0177.3319.0391.1

1,158.01,497.01,765.02,369.01,936.0 1,013.01,319.01,181.01,894.01,067.0

155.0153.0211.0423.0343.0 629.0525.0564.0822.0561.0

234.0345.0349.0255.0131.0 561,218,163.0658,740,500.0734,048,807.0737,477,446.0735,562,002.0 1,537,584.01,804,768.02,011,092.02,020,486.02,015,238.0 3,806,000.03,530,000.03,821,000.04,093,000.03,460,000.0 5,680.06,020.06,332.06,562.06,678.0 295.0300.0337.0362.0377.0 93,928.0104,231.011,068.0106,510.0104,261.0 29.82"16.05"33.04"34.60"17"

9,931.010,170.010,681.011,156.011,413.0 191.0198.0214.0245.0256.0 304.0246.0527.0506.0268.0

FiscalYear

BuildingInspection/Codecompliance Vehicles6.07.08.06.06.0

Police Stations1.01.01.01.01.0 Policeunits31.035.029.028.032.0

Fire

Stations2.02.02.02.02.0 FireVehicles5.05.07.011.015.0

PublicWorks/Utilities Vehicles25.025.027.029.029.0

Streets Streets,paved(miles)110.0111.0113.9115.7122.4

ParksandRecreation

Parks-developed4.04.05.05.05.0 Playgrounds,citymaintained4.04.04.04.04.0 Baseballfields2.04.04.04.04.0 Soccerfields1.04.04.04.04.0 Footballfields1.01.01.01.01.0

Water

Numberofstoragetanks3.04.05.05.05.0 numberofpumpstations1.02.02.02.02.0 watermains(miles)69.872.073.874.084.8

Sewer

Sanitarysewers(miles)75.077.089.890.0120.0 numberofliftstations4.05.05.05.05.0

Source: VariousCityDepartments

20212022202320242025

6.06.05.06.02.0 1.01.01.01.01.0 37.037.040.049.045.0

5.05.05.05.05.0

5.05.05.05.05.0 2.02.02.02.02.0 88.090.093.094.098.0

150.0183.0112.9115.6117.1

COMPLIANCESECTION

REPORT

ONINTERNALCONTROLOVERFINANCIALREPORTINGANDON COMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIAL STATEMENTSPERFORMEDINACCORDANCEWITH GOVERNMENT AUDITING STANDARDS

INDEPENDENTAUDITOR’S REPORT

TotheCityCouncil andmanagement CityofCibolo

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the ComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmentalactivities,thebusinesstypeactivities, eachmajorfund,andtheaggregateremainingfundinformationofCityofCiboloasofandfor the year ended September 30, 2025, and the related notes to the financial statements, which collectively compriseCityofCibolo’sbasicfinancialstatements,andhaveissuedourreportthereondatedMarch10,2026.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered City of Cibolo’s internal control overfinancial reporting(internal control)todeterminetheaudit proceduresthat areappropriateinthe circumstances for thepurpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Cibolo’s internal control. Accordingly, we do not express anopinionontheeffectivenessofCityofCibolo’sinternal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internalcontrol,suchthatthereisareasonablepossibilitythatamaterialmisstatementoftheentity’sfinancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yetimportantenoughtomeritattentionbythosechargedwithgovernance.

Ourconsiderationofinternalcontroloverfinancialreportingwasforthelimitedpurposedescribedinthefirst paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be materialweaknesses. However,materialweaknessesmayexistthat havenot beenidentified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether City of Cibolo’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisionswasnotanobjectiveofourauditand,accordingly,wedonotexpresssuchanopinion. Theresults of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain other matters that have been reported to management in a separate letter dated March 10, 2026.

PurposeofthisReport

Thepurposeofthis reportissolelytodescribethescopeofourtestingofinternal controlandcomplianceand theresults ofthattesting, andnotto providean opinionontheeffectiveness ofthe entity’s internal control or oncompliance. This reportisanintegral partofanauditperformedinaccordancewith Government Auditing Standards inconsideringtheentity’sinternalcontrolandcompliance.Accordingly,thiscommunicationisnot suitableforanyotherpurpose.

Armstrong,Vaughan&Associates,P.C.

March10, 2026