Hawk Cove, Texas, May 16, 2025. Today the City certified its annual financial forms to the U.S. Department of Agriculture, and we are pleased to share the balance sheet. It is stamped “CERTIFIED CORRECT,” dated 05-16-2025, and signed by City Secretary Patricia Pendergraft.
On a balance sheet, total assets equal total liabilities and equity. That is what makes it a balance sheet. As of September 30, 2024, “Total Assets” are $2,284,038.12 and “Total Liabilities and Equity” are $2,295,137.79, a difference of $11,099.67. The year before was closer: $2,195,926.48 and $2,206,973.38, a difference of $11,046.90. Consistency again.
Highlights
- “Notes payable USDA”: $1,633,007.20 in both years, to the penny (line 28).
- “IRS BACK PAYROLL TAXES”: $129,205.11, also in both years (line 30).
- “Taxes payable”: $101,343.78, up from $28,974.82 (line 23).
- “ANB LOAN”: $-13,480.77, a liability of less than nothing (line 29).
- “Memberships”: $-328,339.30, down from $19,486.71 (line 34).
- “Are Local, State and Federal Taxes paid current?” The box marked is No (page 2).
Thorough in every section
The form set reports 198 sewer users. It also completed the section headed “HEALTH CARE BORROWERS ONLY,” where the “Percentage of occupancy” is “-2147483648 %” in both columns (page 2). The City’s loan is for a sewer system. The budget statement’s current-year columns are headed “For the 10-01-2024 Months Ended 09-30-2025” (page 1), on a form signed 5-16-25.
A second opinion
At the July 22, 2026 special session with USDA, a USDA official put the loan at “a little over 1.45 million,” which “included something like 170,000” in arrears, and added: “I did not confirm this with the finance office.” We admire the candor. The certified figure remains $1,633,007.20. More on the loan is on Finances and in our story on the sewer loan’s interest.