Strategy Summary: The Federal Open Market Committee (FOMC) maintained the Fed Funds target range between 0.00% and 0.25% (actual Fed Funds traded <10 bps). In December, the FOMC began tapering the Quantitative Easing (QE3) program. The monthly purchase amount has been decreased twice ($10 billion each time) to $65 billion. A continued, orderly tapering is anticipated as long as economic activity remains moderately positive. Fourth quarter 2013 GDP was revised lower to +2.4% from its earlier estimate of +3.2%. Employment grew at a reduced pace, but remained positive. The US stock markets touched new highs. Financial institution deposit yields generally provide the best interest earnings opportunity, although spreads to security yields have tightened. Quarter End Results by Investment Category:

Asset Type Demand/Pools/MMMF Securities/CDs Totals

November 30, 2013 Book Value Market Value $ 69,735,868 $ 69,735,868 61,894,887 61,892,524 $ 131,630,756 $ 131,628,392

February 28, 2014 Book Value Market Value $ 125,903,569 $ 125,903,569 51,344,655 51,344,914 $ 177,248,224 $ 177,248,483

Average Yield for Current Quarter (1) Total Portfolio Average Yield 1 year Treasury Note

Ave. Yield 0.08% 0.49%

Fiscal Year-to-Date Average Yield (2) 0.20% 0.13%

Total Portfolio Average Yield 1 year Treasury Note

0.24% 0.13%

Interest Income Quarter Fiscal Year to Date

$ $

90,171 189,294

(1) Average Yield for Current Quarter is calculated using quarter end report yield and adjusted book values and does not reflect a total return analysis or account for advisory fees. (2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees.

Valley View Consulting, L.L.C. did not provide investment advice on all investment transactions. Valley View Consulting, L.L.C.

Page 1.

Treasury Yield Curves 3.00

2.50

Percentage

2.00

1.50

1.00

0.50

0.00

February 28, 2013

November 29, 2013

February 28, 2014

Valley View Consulting, L.L.C.

Page 2.

US Treasury Historical Yields 7.50 7.00 6.50 6.00 5.50 5.00

Percentage

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

Six Month T-Bill

Two Year T-Note

Ten Year T-Note

Valley View Consulting, L.L.C.

Page 3.

2,000

S&P 500

1,750 1,500 1,250 1,000 750 500 250 0

Valley View Consulting, L.L.C.

Page 4.

Detail of Investment Holdings February 28, 2014 Description Bank of America - Cash BBVA Compass - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Brownsville ISD Muni

Ratings Coupon 0.00% 0.00% 0.00% 0.19% 0.25% AAAm 0.03%

Aaa/AAA

0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 4.00%

Maturity Settlement Date Date Par Value 03/01/14 02/28/14 $ 2,601,063 03/01/14 02/28/14 5,557,516 03/01/14 02/28/14 10,201,219 03/01/14 02/28/14 19,870,307 03/01/14 02/28/14 20,004,469 03/01/14 02/28/14 67,668,996 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

01/22/13 01/22/13 01/22/13 11/26/12 04/12/13 06/18/13 07/25/13 07/11/13 06/26/13

Purchased Value $ 2,601,063 5,557,516 10,201,219 19,870,307 20,004,469 67,668,996

Book Value $ 2,601,063 5,557,516 10,201,219 19,870,307 20,004,469 67,668,996

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 500,000

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,306

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,306

$ 177,201,918

$ 177,248,224

$ 177,248,224

Market Market Life Price Value (days) 100.000 $ 2,601,063 1 100.000 5,557,516 1 100.000 10,201,219 1 100.000 19,870,307 1 100.000 20,004,469 1 100.000 67,668,996 1

Yield 0.00% 0.00% 0.00% 0.19% 0.25% 0.03%

100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000 109.313

32 123 215 271 409 475 514 864 1,264

0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 1.25%

77

0.20%

(1)

(2)

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,565 $ 177,248,483

(1) Weighted average life - For purposes of calculating weighted average life bank, pool, and money market investments are assumed to mature the next business day. (2) Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank, pool, and money market investments. Valley View Consulting, L.L.C. did not provide investment advice on all investment transactions.

Valley View Consulting, L.L.C.

Page 5.

Portfolio Composition Certificates of Deposit 29%

Munis 0% Agency Bullets 0%

Bank Accounts 5%

Pool, MMA & MMMF 66%

Valley View Consulting, L.L.C. Page 6.

Total Portfolio

Book Value Maturity Distribution $140,000,000

$270,000,000

$120,000,000 $220,000,000 $100,000,000

$170,000,000

$80,000,000

$60,000,000 $120,000,000

$40,000,000

$70,000,000 $20,000,000

$0

$20,000,000

Quarter End Book Value

Maturity Date

Call Date

* Pre 2010 reported information derived from previous manager reports and does not include all accounts and funds

Valley View Consulting, L.L.C.

Page 7.

Book Value Comparison Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool Comerica Bank CD Southside Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Brownsville ISD Muni

Coupon 0.00% 0.00% 0.00% 0.00% 0.19% 0.25% 0.03%

Yield 0.00% 0.00% 0.00% 0.00% 0.19% 0.25% 0.03%

Maturity Date 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14

0.27% 0.34% 0.28% 0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 4.00%

0.27% 0.34% 0.28% 0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 1.25%

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

November 30, 2013 Par Value Book Value $ 2,822,891 $ 2,822,891 4,496,645 4,496,645 170,000 170,000 12,833,254 12,833,254 12,362,867 12,362,867 19,542,920 19,542,920 17,507,291 17,507,291 3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 500,000

3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 549,603

$ 131,581,152

$ 131,630,756

Valley View Consulting, L.L.C.

Purchase/ Adjustment $

1,060,871

7,507,439 461,548 50,161,704

February 28, 2014 Maturity/Call/ Adjustment Par Value Book Value $ (221,828) $ 2,601,063 $ 2,601,063 5,557,516 5,557,516 (170,000) (2,632,034) 10,201,219 10,201,219 19,870,307 19,870,307 20,004,469 20,004,469 67,668,996 67,668,996 (3,000,000) (3,609,163) (4,000,000)

8,597 10,373 12,406 9,397 7,377 4,822 4,190 5,066

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 500,000

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,306

$ (13,636,322) $ 177,201,918

$ 177,248,224

(3,297) $

59,253,790

Page 8.

Market Value Comparison Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool Comerica Bank CD Southside Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Comerica Bank CD Brownsville ISD Muni

Coupon 0.00% 0.00% 0.00% 0.00% 0.19% 0.25% 0.03%

Yield 0.00% 0.00% 0.00% 0.00% 0.19% 0.28% 0.04%

Maturity Date 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14 03/01/14

0.27% 0.34% 0.28% 0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 4.00%

0.27% 0.34% 0.28% 0.34% 0.41% 0.49% 0.57% 0.54% 0.53% 0.55% 0.98% 1.25%

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

November 30, 2013 Par Value Market Value $ 2,822,891 $ 2,822,891 4,496,645 7,968,798 170,000 170,000 12,833,254 9,361,100 12,362,867 12,362,867 19,542,920 19,542,920 17,507,291 17,507,291 3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 500,000

3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 547,240

$ 131,581,152

$ 131,628,392

Valley View Consulting, L.L.C.

Qtr to Qtr Change $ (221,828) (2,411,283) (170,000) 840,119 7,507,439 461,548 50,161,704 (3,000,000) (3,609,163) (4,000,000) 8,597 10,373 12,406 9,397 7,377 4,822 4,190 5,066 (675) $

45,620,091

February 28, 2014 Par Value Market Value $ 2,601,063 $ 2,601,063 5,557,516 5,557,516 10,201,219 19,870,307 20,004,469 67,668,996

10,201,219 19,870,307 20,004,469 67,668,996

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 500,000

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,565

$ 177,201,918

$ 177,248,483

Page 9.

Allocation - Book Value February 28, 2014 Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17 Totals

Operating Fund

Portfolio Total 2,601,063 5,557,516 10,201,219 19,870,307 20,004,469 67,668,996

$

1,422,435 4,657,898

Interest & GO Interest & Sinking Fund Sinking Fund $

10,321,761 20,004,469 54,721,369

-

$

-

Revenue Bond 2009 Fund $ -

1,919,919 2,348,331

177,248,224

$

-

7,628,627 4,492,302

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,306 $

Reserve Fund

5,424,496 3,612,827 2,054,245 546,306 $ 91,127,932

$

4,268,250

Valley View Consulting, L.L.C.

$ 4,492,302

$

7,628,627

$ 11,637,874

Page 10.

Allocation - Book Value February 28, 2014 2010 Projects 2012 Projects Fund Fund (Hays)

Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

-

$

2,509,536

-

$

PFC Reserve Fund

PFC Project Fund -

$

3,713,129

-

698,518

$

-

PFC Repair & Replace Fund $ -

39

300,335

PFC Payment Account -

$

2,979,663

Auxiliary Funds $ 1,178,628 899,618

6,106,994 10,036,951 10,044,574 10,053,292

04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17 Totals

Revenue Bonds 2012

6,546,543

3,025,421

$ 2,509,536

$

3,713,129

$ 36,241,810

$

698,518

Valley View Consulting, L.L.C.

$ 9,526,206

$

39

$

300,335

$ 5,103,666

Page 11.

Allocation - Market Value February 28, 2014 Description

Portfolio Total

Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

2,601,063 5,557,516 10,201,219 19,870,307 20,004,469 67,668,996

Operating Fund $ 1,422,435 4,657,898

10,321,761 20,004,469 54,721,369

Interest & Sinking Fund

GO Interest & Sinking Fund

Revenue Bond 2009 Fund

$

$

$

-

-

1,919,919 2,348,331

-

177,248,483

$

-

7,628,627 4,492,302

10,036,951 10,044,574 10,053,292 6,546,543 5,424,496 3,612,827 3,025,421 2,054,245 546,565 $

Reserve Fund

5,424,496 3,612,827 2,054,245 546,565 $ 91,127,932

$ 4,268,250

Valley View Consulting, L.L.C.

$ 4,492,302

$ 7,628,627

$ 11,638,133

Page 12.

Allocation - Market Value February 28, 2014 2010 Projects 2012 Projects Fund Fund (Hays)

Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

-

$

2,509,536

-

Revenue Bonds 2012 $

PFC Payment Account

PFC Project PFC Reserve Fund Fund -

$

3,713,129

-

698,518

$

-

$

2,979,663

PFC Repair & Replace Fund -

39

$

-

Auxiliary Funds $

1,178,628 899,618

300,335

6,106,994 10,036,951 10,044,574 10,053,292

04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

6,546,543

3,025,421

$ 2,509,536

$

3,713,129

$ 36,241,810

$

698,518

Valley View Consulting, L.L.C.

$ 9,526,206

$

39

$ 300,335

$ 5,103,666

Page 13.

Allocation - Book Value November 30, 2013 Description

Portfolio Total

Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17 Totals

Operating Fund

2,822,891 4,496,645 170,000 12,833,254 12,362,867 19,542,920 17,507,291

$

1,615,393 3,627,430

Interest & GO Interest & Sinking Fund Sinking Fund $

6,867

$

-

Revenue Bond 2009 Fund $ -

131,630,756

$

-

170,000 2,818,601 19,542,920 1,594,363

1,919,059

7,625,208 817,153

3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 549,603 $

Reserve Fund

5,417,120 3,608,005 2,049,179 549,603 $ 29,198,707

$

2,095,926

Valley View Consulting, L.L.C.

$

817,153

$

7,625,208

$ 11,623,907

Page 14.

Allocation - Book Value November 30, 2013 2010 Projects 2012 Projects Fund Fund (Hays)

Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

-

$

3,472,154

$

PFC Reserve Fund

PFC Project Fund -

$

5,378,869

-

702,037

$

-

PFC Repair & Replace Fund $ -

197

300,335

PFC Payment Account -

$

2,979,663

Auxiliary Funds $ 1,200,631 869,215

15,095,775 3,000,000

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17 Totals

-

Revenue Bonds 2012

3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147

3,021,230

$ 3,472,154

$

8,988,032

$ 52,199,215

$

702,037

Valley View Consulting, L.L.C.

$ 9,516,809

$

197

$

300,335

$ 5,091,076

Page 15.

Allocation - Market Value November 30, 2013 Description

Portfolio Total

Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

2,822,891 7,968,798 170,000 9,361,100 12,362,867 19,542,920 17,507,291

Operating Fund $ 1,615,393 3,627,430

Interest & Sinking Fund

GO Interest & Sinking Fund

Revenue Bond 2009 Fund

$

$

$

6,867

-

-

131,628,392

$

-

170,000 2,818,601 19,542,920 1,594,363

1,919,059

7,625,208 817,153

3,000,000 3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147 5,417,120 3,608,005 3,021,230 2,049,179 547,240 $

Reserve Fund

5,417,120 3,608,005 2,049,179 547,240 $ 29,198,707

$ 2,095,926

Valley View Consulting, L.L.C.

$

817,153

$ 7,625,208

$ 11,621,544

Page 16.

Allocation - Market Value November 30, 2013 2010 Projects 2012 Projects Fund Fund (Hays)

Description Bank of America - Cash BBVA Compass - Cash US Bank - Cash First Amer Govt Oblig MMMF Southside Bank MMA BBVA Compass MMA - Libor+ TexPool

$

3,472,154

$

-

Revenue Bonds 2012 $

PFC Payment Account

PFC Project PFC Reserve Fund Fund -

$

5,378,869

-

702,037

$

-

$

2,979,663

PFC Repair & Replace Fund -

197

$

-

Auxiliary Funds $

1,200,631 869,215

300,335

15,095,775 3,000,000

12/01/13 01/03/14 01/06/14 04/01/14 07/01/14 10/01/14 11/26/14 04/13/15 06/18/15 07/27/15 07/11/16 08/15/17

3,609,163 4,000,000 10,028,354 10,034,200 10,040,886 6,537,147

3,021,230

$ 3,472,154

$

8,988,032

$ 52,199,215

$

702,037

Valley View Consulting, L.L.C.

$ 9,516,809

$

197

$ 300,335

$ 5,091,076

Page 17.

Total Portfolio Performance 0.90 0.80 0.70

Percentage

0.60 0.50 0.40 0.30 0.20 0.10 0.00

Rolling One Year Treasury

Valley View Consulting, L.L.C.

Weighted Average Yield

Page 18.