COMPENSATED ABSENCES Employees accrue vacation and sick leave benefits over their career. Unused vacation leave is paid on termination but sick leave is not. A liability is recorded in these financial statements for the estimated amount of accrued leave that is more likely than not to be paid out or taken as leave in the future. Management uses the first in first out flows assumption to calculate the liability. BOARD MEETING 01/22/2026 17 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMB

Staff Report & Agenda Item Details

COMPENSATED ABSENCES Employees accrue vacation and sick leave benefits over their career. Unused vacation leave is paid on termination but sick leave is not. A liability is recorded in these financial statements for the estimated amount of accrued leave that is more likely than not to be paid out or taken as leave in the future. Management uses the first in first out flows assumption to calculate the liability. BOARD MEETING 01/22/2026 17 NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2025 NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.9/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.