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Home My WebLink About20260715ADMINISTRATOR REPORT - Redacted.pdf.pdf G N R-T-26-05 ADMINISTRATOR'S REPORT RECEIVED IDAHO UNIVERSAL SERVICE FUND July 15, 2026 IDAHO PUBLIC YEAR ENDED -- JUNE 307 2026 UTILITIES COMMISSION SURCHARGE REVENUES Surcharge revenues collected during the year ended June 30, 2026, totaled $1,076,888, of which $549,674,or 5 1% was assessed on local exchange services and $527,214,or 49%,was assessed on MTS/WATS services. Current monthly surcharge rates are $.24 per residential line, $.41 per business line, and $.00 5 per MTS/WATS billed minute. DISBURSEMENTS COMPANIES RECEIVING DISBURSEMENTS Authorized disbursements to Local Exchange Companies during the year ended June 30, 2026, totaled $904,977 (page 10). The following table shows the Local Exchange companies authorized by the Idaho Public Utilities Commission to receive disbursements from the Idaho Universal Service Fund. Original IPLTC Order Current Authorizing Authorized Annual Company Name Disbursement Disbursement Total $ 904,977 1 ADMINISTRATIVE FEES AND EXPENSES Administrative fees and expenses for the year ended June 30, 2026 were $18,697. Administrative expenses payable at June 30, 2026 are $1,553. INVESTMENTS AND FUNDS CASH At June 30, 2026, the Idaho Universal Service Fund had a cash balance of $417,551. The following is a table showing the beginning, ending, and quarterly fund cash balances for the year ended June 30, 2026. Beginning Ending Balance Balance Balance Balance Balance 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 $264,435 $2927399 $4327361 $4497665 $4171,551 INTEREST No interest was earned on funds held in bank accounts for the year ended June 30, 2026. INVESTMENTS The Idaho Universal Service Fund had no investments during the year ended June 30, 2026. INVENTORIES Total residential and business lines at May 1, 2026, were 45,028 and 58,375 respectively (pages 32 and 34). This represents a decrease of 34% in residential lines and an increase of 16% in business lines from the prior year. Total MTS/WATS billed minutes of use for the year ended December 317 2025, were 101.873,122 (page 36), a 23% increase from the prior year. 2 STATEWIDE WEIGHTED AVERAGE RATES A schedule summarizing the total funding eligibility for the authorized local exchange companies is shown on page 11. ONE-PARTY, SINGLE LINE SERVICE The statewide weighted average rates for one-party single-line residential and business services are shown on pages 20 and 30. The following table shows the statewide weighted averages for one-party, single line service. IUSF THRESHOLD STATEWIDE 125% STATEWIDE WEIGHTED WEIGHTED AVERAGE RATE AVERAGE RATE RESIDENTIAL SERVICES $35.36 $57.88 BUSINESS SERVICES $44.20 $72.35 TOLL SWITCHED ACCESS The statewide weighted average revenue per MTS/WATS access minute is shown on page 13. The statewide weighted average toll switched access revenue is $ .054 per minute. FUNDING OPTIONS OPTION 1: STATUS QUO If current surcharge rates ($.24 per residential line, $.41 per business line, and $.005 per intrastate MTS/WATS billed minute) are maintained as well as the authorized IUSF disbursements, the fund will decrease by approximately $9,025 (page 37). The 2026-2027 IUSF authorized disbursements will continue at $904,977. MTS/WATS services would contribute approximately 55% of the surcharge revenue and local exchange services would contribute 45% of the surcharge revenue. The fund would have a balance of approximately $409,425 at June 30, 2027. 3 OPTION 2: MAINTAIN SURCHARGE RATES &ADJUST FUNDING TO MEET STATEWIDE AVERAGES Idaho Universal Service Fund rule 106.02 indicates that to continue receiving IUSF funding after the first year of eligibility, the company may need to revise rates to meet or exceed the statewide threshold rates. If the rate is below the statewide threshold rate, and the difference between the rate is greater than 3% and $6,000, the company must revise rates equal or exceed 100% of the statewide average for MTS/WATS access service, and 125% of the statewide average for local exchange service. The following applies rule 106 to each company currently drawing from the IUSF. The application of rule 106 effectively eliminates all annual IUSF authorized disbursements. If current surcharge rates ($.24 per residential line, $.41 per business line, and $.005 per intrastate MTS/WATS billed minute) are maintained the fund will increase by approximately$895,952 (page 37). MTS/WATS services would contribute approximately 55% of the surcharge revenue and local exchange services would contribute 45% of the surcharge revenue. The fund would have an unfeasible balance of approximately $1,314,403 at June 30, 2027. 4 OPTION 3: ADJUST INVENTORIES, MAINTAIN SURCHARGE RATES & MAINTAIN FUNDING LEVELS In order to more accurately calculate future fund balances, the inventories have been adjusted according to the most recent five-year trend. Thus, the residential lines have been reduced 9%, the business lines reduced 5% and the MTS/WATS billed minutes have been increased 6%. If the surcharge rates are maintained at $.24 per residential line, $.41 per business line, and $.005 per intrastate MTS/WATS billed minute and IUSF disbursements are maintained at current authorized levels, the fund will decrease by approximately $3,096 (page 38). MTS/WATS services would contribute approximately 58% of the surcharge revenue and local exchange services would contribute 42% of the surcharge revenue. The fund would have a balance of approximately $414,456 at June 30, 2027. OPTION 4: ADJUST INVENTORIES, SUSPEND SURCHARGE RATES & ADJUST FUNDING TO MEET STATEWIDE AVERAGES In order to more accurately calculate future fund balances, the inventories have been adjusted according to the most recent five-year trend. If the surcharge rates are suspended and IUSF disbursements are adjusted to meet statewide averages per rule 106, the fund will decrease by any ongoing administrative expenses approximately $29,400 (page 38). The fund balance will approximate $388,151 at June 30, 2027. ADMINISTRATOR'S RECOMMENDATION During the past year, there was a continued decrease in both local residential lines of 34% and local business lines of 16%, though MTS/WATS billed minutes surprisingly increased 23%. As in the past, I believe that the local access lines and toll minutes will continue to decline due to the continued migration toward broadband, wireless, cellular and VOIP services, as well as the shift from stand-alone residential service to bundled packages. This affects the statewide average rate calculations, as well as the application of rule 106 to the companies funded by the IUSF. In light of FCC orders and continuing industry changes, it is becoming more difficult to evaluate the IUSF funding as it applies to Rule 106. It is equally challenging to estimate future inventory levels and project the fund balance. The Commission recognized this in opening Case No. GNR--T-17- 05, The 2017 Review of the Idaho Universal Service Fund. Idaho Universal Service Fund rules (IDAPA 31.46.01) outline the criteria for the continuation of eligibility for funding from the IUSF. The 5 application of this rule eliminates all funding from the IUSF for 2026- 2027. Therefore, I recommend that the Commission adopt Option 4 suspending the surcharge rates and, also, applying rule 106.02 that effectively eliminates funding to all companies. It undermines the purpose of the Idaho Universal Service Fund to support companies with average rates below the statewide average. The current fund balance could be invested while the underlying rules and statutes are adjusted, and the conclusion/transition of the Idaho Universal Service Fund is considered. The fund balance at June 30, 2027, will approximate $388,151. If the Commission is inclined to maintain company funding at current levels until changes are made to the underlying rules and statutes, I recommend the adoption of Option 1. This option maintains the surcharge rates at $.24 per residential line, $.41 per business line, and $.005 per intrastate MTS/WATS billed minute. The fund balance will approximate $409,425 at June 30, 2027. 6 IDAHO UNIVERSAL SERVICE FUND BALANCE SHEET JUNE 30, 2026 ASSETS LIABILITIES & EQUITY CASH IN BANK $417,551 ACCOUNTS PAYABLE JUNE ADMINISTRATIVE EXPENSE $1,551 INVESTMENT IN US TREASURIES UNAMORTIZED PREMIUM/(DISCOUNT) ACCRUED INTEREST PURCHASED INTEREST RECEIVABLE FUND BALANCE AT YEAR END 416,000 TOTAL ASSETS $417,551 TOTAL LIABILITIES & EQUITY $417,551 Page 7 IDAHO UNIVERSAL SERVICE FUND STATEMENT OF FUND BALANCE JUNE 30, 2026 REVENUES SURCHARGE REVENUE $1 ,076,888 MISCELLANEOUS REVENUE 0 INTEREST REVENUE 0 TOTAL REVENUE 1 ,076,888 EXPENSES DISBURSEMENTS TO COMPANIES $904,977 BANK/BROKERAGE CHARGES 0 ADMINISTRATIVE EXPENSE** 18,793 TOTAL EXPENSES 923,771 CHANGE IN FUND BALANCE 153,118 FUND BALANCE JULY 1 , 2025 262,883 FUND BALANCE JUNE 30, 2026 416,000.68 **ADMINISTRATIVE EXPENSE ADJUSTED FOR JUNE 2026 PAYABLE Page 8 IDAHO UNIVERSAL SERVICE FUND BANK ACCOUNT ACTIVITY FOR YEAR ENDED JUNE 30, 2026 BEGINNING BALANCE JULY 1, 2025 $264,435 RECEIPTS LOCAL SURCHARGE $549,674 TOLL SURCHARGE 527,214 TOTAL SURCHARGE COLLECTED $1,076,888 MISCELLANEOUS REVENUE 0 INTEREST 0 TOTAL RECEIPTS $1 ,076,888 DISBURSEMENTS BANK/BROKERAGE CHARGES $0 COMPANY DISBURSEMENTS 904,977 ADMINISTRATIVE EXPENSES 18,795 TOTAL DISBURSEMENTS $923,772 ENDING BALANCE JUNE 30, 2026 $417,551.44 Page 9 CONFIDENTIAL 2025-2026 7/14/2026 AUTHORIZED DISBURSEMENTS TOTAL July-25 $ $ 75,414.78 August-25 $ $ 75,414.78 September-25 $ $ 75,414.78 October-25 $ $ 75,414.78 November-25 $ $ 75,414.78 December-25 $ $ 75,414.78 January-26 $ $ 75,414.78 February-26 $ $ 75,414.78 March-26 $ $ 75,414.78 April-26 $ $ 75,414.78 May-26 $ $ 75,414.78 June-26 S $ 75,414.78 TOTAL S $ 904,977.36 Page 10 CONFIDENTIAL 7/14/2026 IDAHO UNIVERSAL SERVICE FUND 2026-27 ADDITIONAL FUNDING REQUIREMENTS ACCESS % RESIDENTIAL % BUSINESS & TOTAL ADD'L NEW ANNUAL FUNDING DIFF FUNDING DIFF FUNDING DIFF FUNDING FUNDING TOTAL $0.00 ^Rule 106.02 provides, to continue receiving IUSF funding. the difference between the rate & statewise threshold cannot exceed 3% and $6,000. COMPANY DID NOT FILE 2026 ANNUAL REPORT TOTAL REPRESENTS COMPANY'S IUSF ANNUAL DISBUSREMENT Page 11 CONFIDENTIAL 7'14 26 2025-26 STATEWIDE ANNUAL ANNUAL REVENUE EQUIVALENT EQUIVALENT TOLL SWITCHED ACCESS ACCESS ACCESS PER ACCESS ACCESS MINUTES REVENUE MINUTE MINUTES REVENUE 26,7287213 S1,431.138 0.053544 1.314.409 $86.182 "COMPANY DID NOT FILE 2026 ANNUALREPORT Page 12 CONFIDENTIAL 7'14.26 RATIO OF TOTAL THRESHOLD & 2025-26 STATEWIDE TOTAL TOTAL AVERAGE TOTAL STATE REVENUE COMPANY TOLL SWITCHED ACCESS ACCCESS ACCESS REVENUE PER ACCESS AT 100% OF FUNDING % RATE MINUTES REVENUE MINUTE MINUTES STATE AVE REQUIRED DIFFERENCE 28,0427623 $1,517,320 0.054108 1.000000 $1,517.320 $0 "COMPANY DID NOT FILE 2026 ANNUALREPORT STATEWIDE AVERAGE RATE FOR MTS/WATS ACCESS 0.054108 Page 13 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE r7 . ■ 1 ■ 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 14 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE M M 1 1 1 1 ,COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 15 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE M M I m ■ —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 16 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE moor= 1 ■ 1 1 ■ ■ m m ,COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 17 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 1 1 ■ 1 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 18 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 19 CONFIDENTIAL 7/14/2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE RESIDENTIAL REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 1 TOTAL 35.810 $15.195.599.88 $18.992,378.15 $3.796,778.27 STATEWIDE WEIGHTED AVERAGE RATE S35.36 125% STATEWIDE WEIGHTED AVERAGE RATE S44.20 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 20 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 21 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 1 1 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 22 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 23 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE M M m a ■ —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 24 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 0 m 1 • ■ 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 25 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 1 ■ 1 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 26 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE m m um" 1 1 1 ■ 1 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 27 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE a —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 28 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 29 CONFIDENTIAL 7114'2026 2025-26 STATEWIDE AVERAGE LOCAL ACCESS RATE BUSINESS REVENUE AT FUNDING PERCENTAGE May 1, 2026 ANNUAL 125% TOTAL PER RATE LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE 1 TOTAL 26,199 $ 18,197,877.60 $22,747,347 $4,549,469.40 STATEWIDE WEIGHTED AVERAGE RATE $57.88 125% STATEWIDE WEIGHTED AVERAGE RATE S72.35 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 30 CONFIDENTIAL 7/14/2026 2026 ACCESS LINES CUSTOMER CENTROM. RESIDENTIAL SINGLE PARTY MULTIPARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER RESIDENTIAL 1 1 1 1 1 -COMPANY DID NOT FILE 2026 ANNUAL REPORT 31 CONFIDENTIAL 7/14/2026 2026 ACCESS LINES CUSTOMER CENTROM. RESIDENTIAL SINGLE PARTY MULTIPARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER RESIDENTIAL 7 0 0 0 0 0 -COMPANY DID NOT FILE 2026 ANNUAL REPORT 32 CONFIDENTIAL 7/14/2026 2026 ACCESS LINES CUSTOMER CENTROM. BUSINESS SINGLE PARTY MULTIPARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER BUSINESS m I 1 1 1 1 1 m -COMPANY DID NOT FILE 2026 ANNUAL REPORT 33 CONFIDENTIAL 7/14/2026 2026 ACCESS LINES CUSTOMER CENTROM. BUSINESS SINGLE PARTY MULTIPARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER BUSINESS 2,20-2 39 fs 3, 5. 58.375 —COMPANY DID NOT FILE 2026 ANNUAL REPORT 34 7/14/2026 2025 MTS/WATS BILLED MINUTES CONFIDENTIAL TOTAL % OF TOTAL REVENUE MTS WATS MTS/WATS TOTAL MTS WATS MTS/WATS PER MINUTES MINUTES OTHER MINUTES STATE REVENUES REVENUES OTHER REVENUES MINUTE 1 4114 11 41 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 35 7/14/2026 2025 MTS/WATS BILLED MINUTES CONFIDENTIAL TOTAL % OF TOTAL REVENUE MTS WATS MTS/WATS TOTAL MTS WATS MTS/WATS PER MINUTES MINUTES OTHER MINUTES STATE REVENUES REVENUES OTHER REVENUES MINUTE TOTAL REPORTED 101,873.122 $ 5.756.918.36 —COMPANY DID NOT SUBMIT 2026 ANNUAL REPORT Page 36 2026-27 IDAHO UNIVERSAL SERVICE FUND OPTIONS 7/14/2026 OPTION 1 - STATUS QUO FUND RATE CHANGE BANK BALANCE 7/1/26 $ 417,551 ANNUAL INVENTORY RESIDENTIAL LINES 45.028 0.24 $129,681 14% OF TOTAL SURCHARGE REVENUE BUSINESS LINES 58.375 0.41 $287,205 31% OF TOTAL SURCHARGE REVENUE TOLL MINUTES 101.873.122 0.005 $509,366 55% OF TOTAL SURCHARGE REVENUE TOTAL IUSF SURCHARGE REVENUE $926,251 ESTIMATED INTEREST INCOME 0 ESTIMATED IUSF DISBURSEMENTS (904,977) ESTIMATED ADMINISTRATIVE EXPENSES 29,400 TOTAL ESTIMATED EXPENSES (934,377) PROJECTED INCOME/(DRAW DOWN) (8,126) PROJECTED BALANCE 6/30/27 $409,425 OPTION 2 - MAINTAIN SURCHARGE RATES & ADJUST FUNDING TO MEET RULE 106/STATEWIDE THRESHOLDS FUND RATE CHANGE BANK BALANCE 7/1/26 $ 417,551 ANNUAL INVENTORY RESIDENTIAL LINES 45.028 0.24 $129,681 14% OF TOTAL SURCHARGE REVENUE BUSINESS LINES 58.375 0.41 287,205 31% OF TOTAL SURCHARGE REVENUE TOLL MINUTES 101.873.122 0.005 509,366 55% OF TOTAL SURCHARGE REVENUE TOTAL IUSF SURCHARGE REVENUE 926,251 ESTIMATED INTEREST INCOME 0 ESTIMATED IUSF DISBURSEMENTS 0 ESTIMATED ADMINISTRATIVE EXPENSES 29,400 TOTAL ESTIMATED EXPENSES (29,400) PROJECTED INCOME/(DRAWDOWN) 896,851 PROJECTED BALANCE 6/30/27 S1.314.403 Page 37 2026-27 IDAHO UNIVERSAL SERVICE FUND OPTIONS 7/14/2026 OPTION 3 - ADJUST INVENTORIES FOR 5 YEAR AVERAGE, MAINTAIN SURCHARGE RATES & FUNDING FUND RATE CHANGE BANK BALANCE 7/1/26 $ 417,551 ANNUAL INVENTORY RESIDENTIAL LINES 40,975 0.24 $118,009 13% OF TOTAL SURCHARGE REVENUE BUSINESS LINES 55.456 0.41 272,845 29% OF TOTAL SURCHARGE REVENUE TOLL MINUTES 107.985.510 0.005 539,928 58% OF TOTAL SURCHARGE REVENUE TOTAL IUSF SURCHARGE REVENUE 930,782 ESTIMATED INTEREST INCOME 0 ESTIMATED IUSF DISBURSEMENTS (904,977) ESTIMATED ADMINISTRATIVE EXPENSES 28,900 TOTAL ESTIMATED EXPENSES (933,877) PROJECTED INCOME/(DRAW DOWN) (3,096) PROJECTED BALANCE 6/30/27 $414,456 OPTION 4 - ADJUST INVENTORIES FOR 5 YEAR AVERAGE, SUSPEND SURCHARGE RATES & ADJUST FUNDING TO MEET RULE 106/STATEWIDE THRESHOLDS FUND RATE CHANGE BANK BALANCE 7/1/26 $ 417,551 ANNUAL INVENTORY RESIDENTIAL LINES 40.975 0.00 $0 BUSINESS LINES 55.456 0.00 0 TOLL MINUTES 107.985.510 0.000 0 TOTAL IUSF SURCHARGE REVENUE 0 ESTIMATED INTEREST INCOME 0 ESTIMATED IUSF DISBURSEMENTS 0 ESTIMATED ADMINISTRATIVE EXPENSES 29,400 TOTAL ESTIMATED EXPENSES (29,400) PROJECTED INCOME/(DRAW DOWN) (29,400) PROJECTED BALANCE 6/30/27 $388.151 Page 38