2011-10-31T15:34:08-05:00 2010-12-31 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 740754103 BLUEBONNET ELECTRIC COOPERATIVE INC BLUE 8886222583 PO BOX 729 BASTROP TX 786020729 ELIZABETH KANA 8886222583 2011-10-18 1 Matt R Willis 8067473806 2011-10-18 2010 2016-03-07 17:11:31Z MARK ROSE PO BOX 729 BASTROP TX 786020729 193170592 0 X WWW.BLUEBONNETELECTRIC.COOP X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 299 0 83741 0 0 0 187047552 192118874 243672 -405088 365183 410663 187656407 192124449 0 202942 0 0 19290899 19633154 0 0 0 163735639 163362324 183026538 183198420 4629869 8926029 368040224 382619969 227128301 235882309 140911923 146737660 X COMMITMENT TO OUR MEMBERS TO BE THE BEST WE CAN BE AT DELIVERING RELIABLE ELECTRIC POWER AND RELATED SERVICES AT A COMPETITIVE PRICE. TO FACILIATE THIS COMMITMENT, WE WILL CONTINUE TO INVEST IN THE LATEST PROVEN TECHNOLOGIES, GOOD STEWARDSHIP OF OUR ENVIRONMENT AND THE COMMUNITIES WE SERVE, AS WELL AS IN THE HEALTH AND SAFETY OF THE PUBLIC, OUR MEMBERS AND EMPLOYEES - THE TRUE SOURCE OF ENERGY OF BLUEBONNET. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 81,317 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 100 0 299 1 1 1 0 0 0 0 197707381 3117242 0 X 10 10 1 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ELIZABETH KANA 8886222583 650 HWY 21 EAST BASTROP TX 78602 X RICHARD SCHMIDT 7.20 X X 41032 0 0 E BENNIE FLENCHER 3.40 X X 35480 0 0 JAMES KERSHAW 4.40 X X 28752 0 0 BYRON BALKE 5.40 X X 28829 0 0 FRED HANNES 1.40 X 14403 0 0 GARY GERDES 4.90 X 36980 0 0 KENNETH MUTSCHER 5.60 X 29297 0 0 ADLINIE RATHMAN 2.10 X 26687 0 0 LYLE WOLZ 3.80 X 22524 0 0 ROBERT MIKESKA 4.00 X 36109 0 0 MILTON SHAW 12.60 X 14876 0 0 MARK ROSE 50.00 X 420225 0 119760 ELIZABETH KANA 50.00 X 219226 0 65085 MATT BENTKE 55.00 X 237817 0 62368 MICHAEL SIMMANG 40.00 X 195378 0 43089 ERIC KOCIAN 50.00 X 170613 0 39856 JOHN A SANDERS 50.00 X 135921 0 39054 THOMAS ELLIS 50.00 X 122855 0 23734 LESLIE BARRIOS 50.00 X 118661 0 18344 GRANT GUTIERREZ 50.00 X 130749 0 39643 RACHEL ELLIS 50.00 X 105878 0 40340 2172292 0 491273 11 0 1 0 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 60677 RIGHT OF WAY 4112066 LINE TECH 402 TECHNOLOGY DRIVE BASTROP TX 78602 CONSTRUCTION 2137775 SIEMENS ENERGY INC DEPT CH 10075 PALATINE IL 60055 CONSULTING 1994855 CENTRAL TEXAS HIGHWAY CONSTRUCTORS PO BOX 1110 LOCKHART TX 78644 CONSTRUCTION 1676067 MCCOY TREE SURGERY COMPANY PO BOX 872119 KANSAS CITY MO 64187 RIGHT OF WAY 1306294 13 ELECTRICITY SALES 221000 189093481 189093481 TRANS.LINE LEASE 221000 1661478 1661478 PATRONAGE DIVIDENDS 221000 1363915 1363915 192118874 178111 83741 94370 5885 5885 297091 373 296718 296718 296718 56231 639430 -583199 -583199 -583199 386784 406340 -19556 -19556 MISCELLANEOUS INCOME 221000 94296 94296 PURCHASE DISCOUNTS 221000 33320 33320 127616 192124449 192226934 83741 -186226 202942 1888386 11535793 2945995 2305804 957176 10199499 15238796 PURCHASED POWER 120196688 DISTRIBUTION EXPENSE 10271664 ADMIN & GENERAL EXP 4136611 CUSTOMER SERVICE 3199281 TRANSMISSION EXPENSE 119785 183198420 4441879 3302278 11043181 10554710 12107365 12656258 1625942 1560563 4799074 4218267 9781283 8992634 412600501 81808582 311570486 330791919 9357245 9904435 3313769 638905 368040224 382619969 16533683 18558056 224857 244423 192167132 195553336 18202629 21526494 227128301 235882309 X 1361025 1280565 0 0 139550898 145457095 140911923 146737660 368040224 382619969 X 8926029 -3100292 X X 0 1 1 X 0 0 1 4602732 4602732 23971929 3906841 20065088 362658503 77901741 284756762 21367337 21367337 330791919 POWER COST OVER COLLECTED 2605658 ACCRUED PROPERTY & OTHER OPERATING TAXES 1869904 ACCRUED EMPLOYEE COMPENSATED ABSENCES 1296957 ACCRUED INTEREST 840772 CONSUMER DEPOSITS 3467783 UNCLAIMED CAPITAL CREDIT RETIREMENTS 1943560 ACCUMULATED PROVISION FOR PENSION AND BENEFITS 8952926 DEFICIT INVESTMENT IN AFFILIATED COMPANY 300136 DEFERRED CREDITS 248798 21526494 Part IV, Line 2b: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. Description of Uncertain Tax Positions Under FIN 48: Part X: ON JANUARY 1, 2009, THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. Part VIII THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART VIII HAS BEEN LEFT BLANK. Part IX THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. 0 BASTROP CHAMBER OF COMMERCE 927 MAIN STREET BASTROP TX 78602 740501825 501(C)(6) 6755 0 TO SUPPORT OPERATIONS OF THE ORGANIZATION. BASTROP COUNTY MUSEUM VISITOR CENTER DONATION 702 MAIN STREET BASTROP TX 78602 501(C)(3) 30000 TO SUPPORT OPERATIONS OF THE ORGANIZATION. BASTROP INDEPENDENT SCHOOL DISTRICT 906 FARM STREET BASTROP TX 78602 501(C)(3) 19974 TO SUPPORT OPERATIONS OF THE ORGANIZATION, INCLUDING PROJECT GRADUATION, HIGH SCHOOL BAND, HIGH SCHOOL HONEY BEARS, AND ATHLETICS. MANOR CHAMBER OF COMMERCE 11250 HIGHWAY 290 E MANOR TX 78653 501(C)(6) 7525 TO SUPPORT OPERATIONS OF THE ORGANIZATION AND SPONSOR THE ANNUAL MANOR CHAMBER OF COMMERCE BANQUET. 4 Other Information: Part IV: ALL GRANTS, SPONSORSHIPS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X X X 0 0 0 MARK ROSE 391952 0 23625 0 4648 0 98548 0 21212 0 539985 0 0 0 ELIZABETH KANA 215868 0 0 0 3358 0 43103 0 21982 0 284311 0 0 0 MATT BENTKE 235111 0 272 0 2434 0 42445 0 19923 0 300185 0 0 0 MICHAEL SIMMANG 185416 0 0 0 9962 0 14789 0 28300 0 238467 0 0 0 ERIC KOCIAN 165939 0 2500 0 2174 0 20528 0 19328 0 210469 0 0 0 JOHN A SANDERS 131243 0 0 0 4678 0 30540 0 8514 0 174975 0 0 0 GRANT GUTIERREZ 123365 0 5148 0 2236 0 14759 0 24884 0 170392 0 0 0 Supplemental Information Part III Part II, Column C INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MARK ROSE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $91,198 401(K) EMPLOYER MATCH 7,350 TOTAL COLUMN C: 98,548 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (91,198) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 91,985 ADD: CASH CONTRIBUTION TO PENSION RESTORATION PLAN: 65,615 TOTAL COOPERATIVE CASH CONTRIBUTION $164,950 MATT BENTKE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $35,213 401(K) EMPLOYER MATCH 7,232 TOTAL COLUMN C: 42,445 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (35,213) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 55,320 TOTAL COOPERATIVE CASH CONTRIBUTION $62,552 ELIZABETH KANA ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $36,397 401(K) EMPLOYER MATCH 6,706 TOTAL COLUMN C: 43,103 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (36,397) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 51,460 TOTAL COOPERATIVE CASH CONTRIBUTION $58,166 MICHAEL SIMMANG ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- 401(K) EMPLOYER MATCH 14,789 TOTAL COLUMN C: 14,789 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (-0-) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: -0- TOTAL COOPERATIVE CASH CONTRIBUTION $14,789 ERIC KOCIAN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $15,326 401(K) EMPLOYER MATCH 5,202 TOTAL COLUMN C: 20,528 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (15,326) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 42,455 TOTAL COOPERATIVE CASH CONTRIBUTION $47,657 JOHN SANDERS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $26,515 401(K) EMPLOYER MATCH 4,025 TOTAL COLUMN C: 30,540 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (26,515) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 28,432 TOTAL COOPERATIVE CASH CONTRIBUTION $32,457 GRANT GUTIERREZ ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $10,574 401(K) EMPLOYER MATCH 4,185 TOTAL COLUMN C: 14,759 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (10,574) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 29,589 TOTAL COOPERATIVE CASH CONTRIBUTION $33,774 MARY ELLEN WHITSEL MARY ELLEN WHITSEL IS EMPLOYED BY THE COOPERATIVE. 53924 MARY ELLEN WHITSEL IS RELATED TO MICHAEL SIMMANG, WHO IS A KEY EMPLOYEE OF THE COOPERATIVE. 0 Form 990, Part VI, Section A, line 2 ADLINIE RATHMAN (DIRECTOR) AND JAMES KERSHAW (DIRECTOR) BOTH OWN STOCK IN FIRST NATIONAL BANK - BASTROP, AND BOTH SERVE ON FIRST NATIONAL BANK - BASTROP'S BOARD OF DIRECTORS. Form 990, Part VI, Section A, line 4 ARTICLE III, SECTION 2 OF THE COOPERATIVE'S BYLAWS WAS AMENDED TO UPDATE THE QUALIFICATIONS OF A DIRECTOR. A DIRECTOR IS REQUIRED TO BE A LEGAL RESIDENT OF THE COUNTY THAT IS SERVED BY THE COOPERATVE BUT THE MEMBER NEED NOT BE A RESIDENT OF THE PORTION OF THE COUNTY SERVED BY THE COOPERATIVE. Form 990, Part VI, Section A, line 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. Form 990, Part VI, Section A, line 7a THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. Form 990, Part VI, Section A, line 7b THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE. 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE. 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. 3. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS. Form 990, Part VI, Section B, line 11 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. Form 990, Part VI, Section B, line 12c BOARD MEMBERS, OFFICERS, AND EMPLOYEES OF THE COOPERATIVE ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. OFFICERS, BOARD MEMBERS AND EMPLOYEES ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY AS SOON AS POSSIBLE. OFFICERS AND BOARD MEMBERS ARE REQUIRED TO REPORT ANY ACTION OR SITUATION TO THE ENTIRE BOARD OF DIRECTORS; EMPLOYEES ARE REQUIRED TO REPORT ANY ACTION OR SITUATION TO MANAGEMENT. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORM 990S WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. INTERNAL AND /OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. THE BOARD AND GENERAL MANAGER USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY, AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORM 990S WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. Form 990, Part VI, Section C, line 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. TO PROVIDE DETAIL REGARDING DIRECTOR'S COMPENSATION Form 990, Part VII, Column D THE COMPENSATION REPORTED FOR MEMBERS OF THE BOARD OF DIRECTORS INCLUDE HEALTH INSURANCE PREMIUMS PAID BY THE COOPERATIVE ON BEHALF OF THE BOARD OF DIRECTORS. TO PROVIDE DETAIL REGARDING OFFICER'S OTHER COMPENSATION Form 990, Part VII, Column F IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 3% OF A PARTICIPATING EMPLOYEE'S BASE SALARY. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND KEY EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND KEY EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNT REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER OR KEY EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR KEY EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR KEY EMPLOYEE. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. PATRONAGE DIVIDENDS Form 990, Part VIII, Line 2 PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. ACCOUNTING SYSTEM Form 990, Part IX THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE WILL BREAK OUT SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. RECONCILIATION OF WAGES PER RETURN TO FORM W-3 Form 990, Part IX, Lines 5-7 SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $13,424,179 LESS DIRECTORS FEES REPORTED ON 1099-MISC (314,969) LESS EMPLOYEE OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (330,158) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 409,563 PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 3,586,539 RECONCILIATION TO W-3 $16,775,154 BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL Form 990, Part IX, Line 24 THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24. OUTSIDE SERVICES EMPLOYED $2,919,273 OFFICE SUPPLIES AND EXPENSE 152,760 INSURANCE EXPENSE 887,680 MAINTENANCE OF GENERAL PLANT 176,898 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $4,136,611 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: NET DECREASE IN MEMBERSHIPS -80,460. EQUITY METHOD INCOME (LOSS) FROM INVESTMENT IN SUBSIDIARY -50,047. OTHER COMPREHENSIVE INCOME(LOSS) PROVISION FOR PENSIONS AND BENEFITS -151,548. RETIREMENT OF PATRONAGE CAPITAL -2,818,237. Total to Form 990, Part XI, Line 5: -3,100,292. AUDIT COMMITTEE Form 990, Part XII, Line 2c THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. BLUEBONNET RURAL WATER CORPORATION PO BOX 729 BASTROP TX 78602 742532344 WATER DISTRIBUTION TX N/A C 721144 1446428 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 BLUEBONNET RURAL WATER CORPORATION - (I) INTEREST A 83741 CASH BLUEBONNET RURAL WATER CORP - (IV) BUILDING RENT NA LESS THAN 50000 A 0 CASH BLUEBONNET RURAL WATER CORPORATION P 350617 CASH BLUEBONNET RURAL WATER CORPORATION NA LESS THAN 50000 N HOURS X EMPLOYEE COMPENSATION