MINUTES OF MEETING

AUGUST 23rd , 2006

PVGCD OFFICE

CUERO PLAZA MALL-SUITE 1129

CUERO, TX 77954

BOARD MEMBERS PRESENT: Errol John Dietze, Lias “Bubba” Steen, Gary Colman, Bob Davis

ALSO IN ATTENDANCE: Dist. Mgr., Bob McCurdy, Attorney, Jim Allison; Guest, Dr. Harold High.

1# CALL TO ORDER: A quorum present, and all notices properly posted, the meeting was called to order at 4:00 P.M. by Vice-Chairman, Bubba Steen. Chairman Errol John Dietze joined the meeting at 4:20.

2# APPROVAL OF MINUTES: Minutes of the July 25^th meeting were presented to the Board. Gary Colman made a motion to accept the minutes as presented, seconded by Bob Davis; motion carried unanimously.

3# FINANCIAL REPORT: The financial report was presented by GM, Bob McCurdy.

Attention was given to the projected budget for 2007 to be approved for certification for DeWitt Co. Tax Assessor with proper notification. A motion to approve the financial report was made by Gary Colman, seconded by Bob Davis; the motion carried unanimously.

#4 PUBLIC COMMENT: Guest, Dr. Harold High, commended the board for their diligence in monitoring the groundwater status in DeWitt Co. He recommended to the board that an increase in revenue for the District should be considered due to impending expenses regarding engineering and legal costs that the District faces in the future.

#5 CONDUCT PUBLIC HEARING AND ADOPT BUDGET: The 2007 budget was discussed at length with presentation by GM Bob McCurdy. The proposed budget was adopted by the board with a motion by Gary Colman, second by E.J. Dietze; the motion carried unanimously with 4 ayes, 0 nays.

#6 CONDUCT PUBLIC HEARING AND ADOPT TAX RATE: It was agreed that the tax rate would remain the same as last year, $0.015 per $100 of taxable evaluation. This would increase income for the District by approximately $7,000. Motion was made by Bob Davis, second by Gary Colman, 4 ayes, 0 nays; unanimous decision.

#7 STRATEGIES TO REVISE RULES & MANAGEMENT PLAN: Discussion was held regarding a time line on the management plan and rules changes. Since the District has not had any information on whether the engineering done by Texas A&M Kingsville will be accepted by the TWDB, it was decided that we could not move forward with planning at this time. Manager Bob McCurdy reminded the board that we will have to have some confirmation on the changes by 2007 to comply with TWDB mandates. Also, the changes in the GMA’s from GMA 16 to 15 will have an affect on what our water planning policy will be. Until the Board has more information on the coming changes, it was decided to table planning until the engineering and GMA changes are complete.

8# ADJOURNMENT: There being no other agenda items, a motion to adjourn was made by Bubba Steen and seconded by Bob Davis; unanimously passed, the meeting was adjourned at 5:25 PM.

_______________________________________Sec/Gary Colman

Recorded: Bob McCurdy/Dist. Mgr. PVGCD