2% Percent of Total Revenues BOARD MEETING 01/22/2026 See Independent Auditor’s report. 46 TSI-8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS FISCAL YEAR ENDING SEPTEMBER 30, 2025 Complete Entity Mailing Address: 2370 FM 1979, San Marcos, TX 78666 Entity Business Telephone Number: 830-372-1031 Submission Date of the most recent Registration Form: May 2021 Limit of Fees of Office that a Trustee may receive during a fiscal year: $7,200 Term of Office Fees of (Elected or Office Expense Appointed

Staff Report & Agenda Item Details

2% Percent of Total Revenues BOARD MEETING 01/22/2026 See Independent Auditor’s report. 46 TSI-8. BOARD MEMBERS, KEY PERSONNEL, AND CONSULTANTS FISCAL YEAR ENDING SEPTEMBER 30, 2025 Complete Entity Mailing Address: 2370 FM 1979, San Marcos, TX 78666 Entity Business Telephone Number: 830-372-1031 Submission Date of the most recent Registration Form: May 2021 Limit of Fees of Office that a Trustee may receive during a fiscal year: $7,200 Term of Office Fees of (Elected or Office Expense Appointed) Paid* Reimbursements Title at Names: or Date Hired 9/30/25 9/30/25 Year End Board of Trustees: Mike Cox 1/11-12/25 --- --- Director Joseph Benavides 1/25-12/27 --- --- Director Allen Pooley 4/20-12/25 --- --- Secretary Nick Reininger 12/21-12/27 --- --- Vice President Robert Snipes 1/23-12/25 --- --- Treasurer Andrea Velasquez 1/24-12/26 --- --- Director Vacant 5/22-7/25 --- --- President Administrative Personnel: Regina Franke 8/15/2016 139,536 $ - $ General Manager Consultants: M&S Engineering 1,294,419 $ Engineer Terrill & Waldrop 749,589 $ Attorney Garver LLC 196,185 $ Engineer Texas Land & Right of Way Company 180,400 $ ROW Agent Freese and Nichols 126,627 $ Engineer Ardurra Group, Inc. 43,354 $ Engineer Willdan Financial Services 25,468 $ Rate Consultant Armstrong, Vaughan & Associates, P.C. 18,025 $ Auditor *Fees of Office are the amounts actually paid to a director during the District’s fiscal year. BOARD MEETING 01/22/2026 47 COMPLIANCE SECTION BOARD MEETING 01/22/2026 48 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR’S REPORT The Board of Directors Crystal Clear Special Utility District 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 Comptroller General of the United States, the financial statements of Crystal Clear Special Utility District as of September 30, 2025 and for the year then ended, and the related notes to the financial statements, which collectively comprise Crystal Clear Special Utility District’s basic financial statements, and have issued our report thereon dated January 9, 2026. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Crystal Clear Special Utility District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Crystal Clear Special Utility District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Crystal Clear Special Utility District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management 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 internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial 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, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first 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 material weaknesses. However, material weaknesses may exist that have not been identified. BOARD MEETING 01/22/2026 49 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Crystal Clear Special Utility District’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 provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we have reported to management of Crystal Clear Special Utility District in a separate letter dated January 9, 2026. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Armstrong, Vaughan & Associates, P.C. January 9, 2026 BOARD MEETING 01/22/2026 50 INDEPENDENT AUDITOR'S REPORT REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH UNIFORM GUIDANCE Board of Directors Crystal Clear Special Utility District San Marcos, TX Report on Compliance for Each Major Federal Program We have audited Crystal Clear Special Utility District’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2025. Crystal Clear Special Utility District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, Crystal Clear Special Utility District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Crystal Clear Special Utility District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Crystal Clear Special Utility District’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to Crystal Clear Special Utility District’s federal programs. BOARD MEETING 01/22/2026 51 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Crystal Clear Special Utility District’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Crystal Clear Special Utility District’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Crystal Clear Special Utility District’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of Crystal Clear Special Utility District’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Crystal Clear Special Utility District’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. BOARD MEETING 01/22/2026 52 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, Armstrong, Vaughan & Associates, P.C. January 9, 2026 BOARD MEETING 01/22/2026 53 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2025

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 5.0/10). 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.