2024-11-12T10:38:08-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 740754103 BLUEBONNET ELECTRIC COOPERATIVE INC BLUE 8886222583 PO BOX 729 BASTROP TX 786020729 GRANT GUTIERREZ CFO 8886222583 2024-11-08 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-08 X 2023 2024-10-15 13:58:12Z MATT BENTKE PO BOX 729 BASTROP TX 786020729 312819194 0 X WWW.BLUEBONNET.COOP X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 396 0 0 0 0 0 301811551 309062472 1847070 750740 949231 1140638 304607852 310953850 362219 445279 33516581 36077260 25485448 26042218 0 0 0 243258048 247510176 302622296 310074933 1985556 878917 731168086 803686235 423623030 467555967 307545056 336130268 TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 129,658 ACTIVE SERVICES AT YEAR END. 0 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 0 0 1 101 0 396 1 0 0 0 0 0 365328225 5414257 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X GRANT GUTIERREZ CFO 8886222583 155 ELECTRIC AVENUE BASTROP TX 78602 X BYRON BALKE ASST SECRETARY/TREASURER 8.00 1.00 X X 44626 0 0 BRYAN BRACEWELL DIRECTOR 8.10 1.00 X 44842 0 0 RODERICK EMANUEL VICE CHAIRMAN 9.20 1.00 X X 45790 0 0 ERVIN B FLENCHER JR CHAIRMAN 10.50 1.00 X X 50082 0 0 DEBORAH GOERTZ DIRECTOR 9.40 1.00 X 46276 0 0 RUSSELL JURK DIRECTOR 9.10 1.00 X 45474 0 0 ROBERT MIKESKA SECRETARY/TREASURER 9.00 1.00 X X 45416 0 0 MILTON SHAW DIRECTOR 10.60 1.00 X 45642 0 0 CARRISSA WHITELEY DIRECTOR 7.10 1.00 X 44842 0 0 MATTHEW BENTKE GENERAL MANAGER 50.00 X 894536 0 308213 SARAH NEWMAN-ALTAMIRANO GENERAL COUNSEL 50.00 X 493309 0 44808 ERIC KOCIAN CHIEF ENGINEER/SYSTEM OPS OFFICER 50.00 X 457192 0 150087 GRANT GUTIERREZ CFO 50.00 X 454894 0 142275 RACHEL ELLIS CHIEF ADMINISTRATIVE OFFICER 50.00 X 350505 0 172353 WILLIAM HOLFORD MGR OF PUBLIC AFFAIRS 50.00 X 306127 0 39897 WESLEY BRINKMEYER MGR COMMUNITY/DEVELOPMENT SERVICES 50.00 X 275639 0 58609 THOMAS ELLIS MGR OF ENGINEERING 50.00 X 267061 0 103969 DANIEL FOWLER MGR OF TECH PROGRAMS 50.00 X 256922 0 60598 PHILLIP ELLIS MGR OF TECHNICAL SERVICES 50.00 X 256907 0 90813 4426082 0 1171622 170 0 1 0 BURLIN POWER LINE LLC 9225 N HWY 77 LEXINGTON TX 78947 CONSTRUCTION CONTRACTOR 5363894 THE DAVEY TREE SURGERY COMPANY PO BOX 846604 LOS ANGELES CA 90084 ROW CONTRACTOR 5229294 LINETEC SERVICES LLC PO BOX 13650 ALEXANDRIA LA 71315 CONSTRUCTION CONTRACTOR 4409116 OVER & UNDER LLC 15483 CR 424 SOMERVILLE TX 77879 CONSTRUCTION CONTRACTOR 3963930 PIKE CORPORATION PO BOX 746308 ATLANTA GA 30374 CONSTRUCTION CONTRACTOR 3532510 36 X SALES OF ELECTRICITY 221000 300221819 300221819 SERVICE FEES 221000 3889033 3889033 PATRONAGE DIVIDENDS 221000 2115755 2115755 TRANSMISSION ACCESS 221000 2012007 2012007 TRANSMISSION LINE LEASE 221000 823858 823858 309062472 769775 769775 19123 19123 3000 0 3000 3000 3000 19250 38285 -19035 -19035 -19035 1850976 1827059 23917 23917 POLE ATTACHMENT INCOME 221000 818248 818248 MISCELLANEOUS REVENUE 221000 175278 175278 MUTUAL AID 221000 101072 101072 1094598 310953850 309242632 0 1711218 X 445279 36077260 3881162 15971123 2024492 2848120 1317321 15171375 24972090 PURCHASED POWER 178744012 DISTRIBUTION EXPENSE 20031191 CONSUMER EXPENSE 4395344 ADMIN & GENERAL EXPENSE 3711213 484951 310074933 3017712 1982668 13996265 16314453 20629295 25358473 6294749 9124129 37566498 43055460 807175480 116038801 630190868 691136679 16179406 16469574 3293293 244799 731168086 803686235 36160655 42387306 516189 468223 606548 663609 347854945 364143401 38484693 59893428 423623030 467555967 X 644780 623300 0 0 306900276 335506968 307545056 336130268 731168086 803686235 X 878917 27706295 X X 0 1 X 1 1 1 0 1 X 5305218 5305218 41016547 13942384 27074163 731569317 102096417 629472900 29284398 29284398 691136679 ACCRUED OPERATING TAXES 1596533 CONSUMER DEPOSITS 14880108 PATRONAGE CAPITAL PAYABLE 7162297 ACCUMULATED PROVISION FOR PENSION AND BENEFITS 8111481 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 18005100 POWER COST OVER COLLECTED 10137909 59893428 X PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED PER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE REPORTED TO 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 AMOUNTS DESIGNATED UNCLAIMED PER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE REPORTED TO 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 AMOUNTS DESIGNATED UNCLAIMED PER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE REPORTED TO 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. PART X, LINE 2: THE COOPERATIVE FOLLOWS 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, OR OTHER STATE TAXING AUTHORITY, 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% 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% 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. 1 BRENHAM EDUCATION FOUNDATION 2211 S DAY ST SUITE 330 BRENHAM TX 77833 830400404 501(C)(3) 5106 0 ARTS & APPETIZERS SPONSOR, GIFTCARDS FOR BENHAM ISD EDUCATION FOUNDATION, FUNDRAISER SPONSOR, AND 2023 SPONSORSHIP CHILDREN'S ADVOCACY CENTER 59 TX LOOP 150 BASTROP TX 78602 742633011 501(C)(3) 5300 18 COST OF ITEMS DONATED 2023 CONTRIBUTION, MEMORIAL DONATION FOR RAYMAH M. DAVIS, AND ADOPT-A-FAMILY DONATION ELGIN CHAMBER OF COMMERCE PO BOX 408 ELGIN TX 78621 740607348 501(C)(6) 5400 117 COST OF ITEMS DONATED TIERED SPONSORSHIP PROGRAM, METT SUMMIT SPONSOR, ELGIN WESTERN DAYS SPONSOR, ELGIN WESTERN DAYS GOLF TOURNAMENT, AND CHAMBER BANQUET FAMILY CRISIS CENTER PO BOX 736 BASTROP TX 78602 742304542 501(C)(3) 5450 0 DINNER & DANCE GALA SPONSOR, COBANK SHARING SUCCESS GRANT, WOMEN'S LEADERSHIP LUNCHEON SPONSOR, GUNTOWN SHOWDOWN SPONSOR, AND HOLIDAY GALA SPONSOR LOCKHART CHAMBER OF COMMERCE PO BOX 840 LOCKHART TX 78644 740750055 501(C)(6) 5750 270 COST OF ITEMS DONATED 88TH ANNUAL CHAMBER BANQUET AND CORPORTATE LEVEL MEMBERSHIP WASHINGTON COUNTY FAIR ASSOCIATION 1305 E BLUE BELL ROAD BRENHAM TX 77833 746060448 501(C)(3) 4880 540 COST OF ITEMS DONATED FUNDRAISER SPONSORSHIPS FOR COUNTY FAIR BASTROP CHAMBER OF COMMERCE 927 MAIN ST BASTROP TX 78602 740501825 501(C)(6) 8259 108 COST OF ITEMS DONATED GOLF TOURNAMENT SPONSOR, FULL HITCH RESERVED TABLE, FIRST RESPONDERS LUNCHEON SPONSOR, MINGLE N JINGLE HOLIDAY MIXER, CHAMBER LUNCHEON, AND CHAMBER BANQUET SPONSOR SMITHVILLE COMMUNITY CLINIC 300 LYNCH ST SMITHVILLE TX 78957 204515999 501(C)(3) 6500 0 GRANT TO BUILD SHELTER FOR THE MOBILE DENTAL FACILITY BRAZOS VALLEY COMMUNITY ACTION PROGRAM 4001 E 29TH SUITE 175 BRYAN TX 77802 813036685 501(C)(3) 7200 0 PROVIDE HOME ENERGY ASSISTANCE TO LOW-INCOME HOUSEHOLDS TRAVIS COUNTY HEALTH & HUMAN SERVICES 100 N INTERSTATE 35 FRONTAGE RD 2000 AUSTIN TX 78701 746000192 GOVERNMENT 12000 0 PROVIDE HOME ENERGY ASSISTANCE TO LOW-INCOME HOUSEHOLDS COMBINED COMMUNITY ACTION INCORPORATED 165 W AUSTIN STREET GIDDINGS TX 78942 741548511 501(C)(3) 12000 0 PROVIDE HOME ENERGY ASSISTANCE TO LOW-INCOME HOUSEHOLDS COMMUNITY ACTION INC OF CENTRAL TEXAS 215 S REIMER AVENUE 130 SAN MARCOS TX 78666 741541726 501(C)(3) 12000 0 PROVIDE HOME ENERGY ASSISTANCE TO LOW-INCOME HOUSEHOLDS 9 3 PART II: GRANT RECIPIENTS ARE NON-PROFIT, CIVIC, AND GOVERNMENTAL ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. GRANTS ARE MONITORED TO INSURE THAT DONATIONS ARE USED FOR THEIR INTENDED PURPOSES. X X X X 0 1 0 MATTHEW BENTKE GENERAL MANAGER 617058 0 275000 0 2478 0 274692 0 33521 0 1202749 0 0 0 ERIC KOCIAN CHIEF ENGINEER/SYSTEM OPS OFFICER 350524 0 105000 0 1668 0 115165 0 34922 0 607279 0 0 0 GRANT GUTIERREZ CFO 349084 0 105000 0 810 0 105992 0 36283 0 597169 0 0 0 SARAH NEWMAN-ALTAMIRANO GENERAL COUNSEL 365659 0 125000 0 2650 0 29700 0 15108 0 538117 0 0 0 RACHEL ELLIS CHIEF ADMINISTRATIVE OFFICER 273115 0 75000 0 2390 0 147027 0 25326 0 522858 0 0 0 THOMAS ELLIS MGR OF ENGINEERING 231709 0 32114 0 3238 0 90169 0 13800 0 371030 0 0 0 PHILLIP ELLIS MGR OF TECHNICAL SERVICES 223403 0 32114 0 1390 0 78885 0 11928 0 347720 0 0 0 WILLIAM HOLFORD MGR OF PUBLIC AFFAIRS 263709 0 40000 0 2418 0 27531 0 12366 0 346024 0 0 0 WESLEY BRINKMEYER MGR COMMUNITY/DEVELOPMENT SERVICES 237029 0 37616 0 994 0 25449 0 33160 0 334248 0 0 0 DANIEL FOWLER MGR OF TECH PROGRAMS 223438 0 32240 0 1244 0 24110 0 36488 0 317520 0 0 0 PART I, LINE 4B MATT BENTKE PARTICIPATES IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN. THE ACTUARIAL INCREASE ASSOCIATED WITH PARTICIPATION IN THE PLAN WAS $146,815 FOR 2023. 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 AND YEARS OF SERVICE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS AND THE LONGER THEY HAVE BEEN EMPLOYED, 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 CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MATT BENTKE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 114,677 ACTUARIAL INCREASE IN NQDC PLAN 146,815 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 274,692 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (261,492) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 172,754 EXPENSE TO THE COOPERATIVE $ 185,954 ERIC KOCIAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 101,965 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 115,165 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (101,965) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 97,451 EXPENSE TO THE COOPERATIVE $ 110,651 GRANT GUTIERREZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 92,792 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 105,992 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (92,792) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 97,451 EXPENSE TO THE COOPERATIVE $ 110,651 SARAH NEWMAN-ALTAMIRANO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 29,700 TOTAL COLUMN C AND EXPENSE TO COOPERATIVE $ 29,700 RACHEL ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 133,827 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 147,027 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (133,827) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 81,209 EXPENSE TO THE COOPERATIVE $ 94,409 THOMAS ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 79,478 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,691 TOTAL REPORTED IN COLUMN C $ 90,169 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (79,478) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 59,061 EXPENSE TO THE COOPERATIVE $ 69,752 PHILLIP ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 68,595 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,290 TOTAL COLUMN C AND EXPENSE TO COOPERATIVE $ 78,885 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (68,595) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 59,061 EXPENSE TO THE COOPERATIVE $ 69,351 WILLIAM HOLFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 27,531 TOTAL COLUMN C AND EXPENSE TO COOPERATIVE $ 27,531 WESLEY BRINKMEYER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 25,449 TOTAL REPORTED IN COLUMN C $ 25,449 DANIEL FOWLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 24,110 TOTAL REPORTED IN COLUMN C $ 24,110 GARRETT GUTIERREZ FAMILY - OFFICER (G. GUTIERREZ) 152463 EMPLOYMENT 0 PHILLIP ELLIS FAMILY - OFFICER (R. ELLIS) 256907 EMPLOYMENT 0 DAVID TOBOLA FAMILY - OFFICER (R. ELLIS) 231240 EMPLOYMENT 0 JOEY TOBOLA FAMILY - OFFICER (R. ELLIS) 241842 EMPLOYMENT 0 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COMPLETE COPY OF THE FORM 990 TO ALL BOARD MEMBERS FOR DISCUSSION AND REVIEW PRIOR TO FILING. 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 INDEPENDENT COMPENSATION CONSULTANT TO COMPARE COMPENSATION REPORTED ON IRS FORMS 990 FOR OTHER ELECTRIC COOPERATIVES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEO/GENERAL MANAGERS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. INTERNAL RESOURCES ARE ALSO USED TO COMPARE COMPENSATION WITHIN THE INDUSTRY ANNUALLY. WHEN DETERMINING SALARIES FOR OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND HIGHLY COMPENSATED EMPLOYEE, THE CEO USES A WEB-BASED SOFTWARE THAT COLLECTS INFORMATION FROM VARIOUS INDUSTRIES, INCLUDING THE UTILITY INDUSTRY, IN DIFFERENT PARTS OF THE COUNTRY. THE AVAILABLE DATA FOR UTILITIES OF SIMILAR SIZE TO AND IN THE REGION OF THE COOPERATIVE, ALONG WITH COMPENSATION DATA OBTAINED FROM FORMS 990 OF OTHER ELECTRIC COOPERATIVES, IS USED TO SET APPROPRIATE MARKET BASED SALARIES. THIS PROCESS IS ADMINISTERED BY THE CEO AND THE HUMAN RESOURCES DEPARTMENT. 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. ADDITIONALLY, BYLAWS AND SUMMARIZED FINANCIAL STATEMENTS MAY ALSO BE OBTAINED THROUGH THE COOPERATIVE'S ONLINE DOCUMENT CENTER VIA ITS WEBSITE - WWW.BLUEBONNET.COOP/DOCUMENT-CENTER. FORM 990, PART VII, COLUMN D: THE COMPENSATION REPORTED FOR THE BOARD OF DIRECTORS INCLUDE HEALTH INSURANCE PREMIUMS PAID BY THE COOPERATIVE ON THEIR BEHALF. 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. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. 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 HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. 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. 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. FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. 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. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $19,852,285 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (412,990) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (817,736) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 224,007 PLUS: SALARIES AND WAGES REPORTED IN POWER SUPPLY 549,920 PLUS: SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 18,836,366 TOTAL WAGES ACCRUED AND/OR PAID $38,231,852 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OUTSIDE SERVICES EMPLOYED $ 457,437 OUTSIDE SERVICES EMPLOYED - IT 386,646 TECHNOLOGY 479,660 DUES AND SUBSCRIPTIONS 236,055 GENERAL MAINTENANCE 378,140 INSURANCE 187,275 DIRECTORS 538,657 PROPERTY TAX 264,962 PUC GROSS RECEIPTS ASSESSMENT 521,956 TRAVEL & TRANSPORTATION 142,649 EMPLOYEE PROGRAMS 140,965 TRAINING 142,563 OTHER ADMINISTRATIVE & GENERAL 181,887 SALARIES & BENEFITS 6,962,791 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $11,021,643 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (412,990) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,885,934) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (5,011,506) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,711,213 FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 36,077,260. PATRONAGE CAPITAL RETIRED - TOTAL -8,030,002. NET DECREASE IN MEMBERSHIPS -21,480. OTHER COMPREHENSIVE INCOME(LOSS) PROVISION FOR PENSIONS AND BENEFITS -386,616. EQUITY METHOD INCOME(LOSS) FROM INVESTMENT IN SUBSIDIARY -1,141. RECLASS ESCHEAT EXEMPT FUNDS 68,274. 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. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. BLUEBONNET RURAL DEVELOPMENT CORPORATION PO BOX 729 BASTROP TX 78602 742532344 RURAL DEVELOPMENT TX BLUEBONNET ELECTRIC COOPERATIVE INC C 7692 33797 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 BLUEBONNET RURAL DEVELOPMENT CORPORATION Q N/A - LESS THAN $50,000