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12 December 9, 2015 CommissionMEETING AGENDA TIME/DATE: 9:30 a.m. / Wednesday, December 9, 2015 LOCATION: BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside  COMMISSIONERS  Chair – Daryl Busch Vice Chair – Scott Matas Second Vice Chair – John F. Tavaglione Kevin Jeffries, County of Riverside John F. Tavaglione, County of Riverside Chuck Washington, County of Riverside John J. Benoit, County of Riverside Marion Ashley, County of Riverside Deborah Franklin / Art Welch, City of Banning Brenda Knight / Jeff Fox, City of Beaumont Joseph DeConinck / Tim Wade, City of Blythe Ella Zanowic / Jim Hyatt, City of Calimesa Dawn Haggerty / Jordan Ehrenkranz, City of Canyon Lake Greg Pettis / Shelley Kaplan, City of Cathedral City Steven Hernandez / To Be Appointed, City of Coachella Karen Spiegel / Randy Fox, City of Corona Scott Matas / Russell Betts, City of Desert Hot Springs Adam Rush / Clint Lorimore, City of Eastvale Linda Krupa / Paul Raver, City of Hemet Dana Reed / Douglas Hanson, City of Indian Wells Troy Strange / Glenn Miller, City of Indio Frank Johnston / Brian Berkson, City of Jurupa Valley Robert Radi / To Be Appointed, City of La Quinta Bob Magee / Natasha Johnson, City of Lake Elsinore Scott Mann / John Denver, City of Menifee Jesse Molina / Jeffrey J. Giba, City of Moreno Valley Rick Gibbs / Jonathan Ingram, City of Murrieta Berwin Hanna / Kathy Azevedo, City of Norco Jan Harnik / Susan Marie Weber, City of Palm Desert Ginny Foat / Paul Lewin, City of Palm Springs Daryl Busch / Rita Rogers, City of Perris Ted Weill / To Be Appointed, City of Rancho Mirage Rusty Bailey / Andy Melendrez, City of Riverside Andrew Kotyuk / Scott Miller, City of San Jacinto Michael S. Naggar / Michael McCracken, City of Temecula Ben Benoit / Timothy Walker, City of Wildomar John Bulinski, Director, Governor’s Appointee Caltrans District 8 Comments are welcomed by the Commission. If you wish to provide comments to the Commission, please complete and submit a Speaker Card to the Clerk of the Board. COMM-COMM-00053 Tara Byerly From: Tara Byerly Sent: To: Thursday, December 03, 2015 8:26 AM Tara Byerly Cc: Jennifer Harmon Subject: RCTC: December Commission Agenda -12.09.2015 Importance: High Good morning Commissioners: The December Agenda for the meeting scheduled for Wednesday, December 9, 2015 @ 9:30 a.m. is available. Please copy the link: http://www.rctc.org/uploads/media items/december-9-2015.original.pdf In addition, for your review is the attached conflict of interest memo and the form. Please let me know if you have any questions. Thank you. Conflict of Conflict of Interest Form.pdf Interest Memo.pdf Respectfully, <Tara S. <Byer(y Deputy Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1 Tara Byerly From: Sent: To: Subject: Importance: Tara Byerly Thursday, December 03, 2015 8:27 AM Tara Byerly RCTC: December Commission Agenda -12.09.2015 High Good morning Commission Alternates: The December Agenda for the meeting scheduled for Wednesday, December 9, 2015@ 9:30 a.m. is available. Please copy the link: http://www.rctc.org/uploads/media items/december-9-2015.original.pdf 'Tara S. <Byer[y Deputy Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1 Riverside County Transportation Commission TO: FROM: DATE: SUBJECT: Riverside County Transportation Commission Jennifer Harmon, Clerk of the Board December 2, 2015 Possible Conflicts of Interest -Riverside County Transportation Commission Agenda of December 9, 2015 The December 9, 2015 agenda of the Riverside County Transportation Commission includes items that may raise possible conflicts of interest. A Commissioner may not participate in any discussion or action concerning a contract or amendment if a campaign contribution of more than $250 is received in the past 12 months or 3 months following the conclusion from any entity or individual listed. Agenda Item No. BG -Agreements for On-Call Right of Wav Phase I and Phase II Environmental Assessment Services Consultant(s): The Converse Professional Group Norman S. Ele, Senior Vice President 222 E Huntington Drive, Suite 211 Monrovia, CA 91016 Leighton Consulting, Inc. Kris R. Lutton, Senior Vice President 17781 Cowan Irvine, CA 92614 Ninyo & Moore Geotechnical & Environmental Sciences Consultants Nancy Anglin, Principal Engineer 11650 Mission Park Drive, Suite 101 Rancho Cucamonga, CA 91730 Agenda Item No. 14A -Closed Session -Conference with Real Property Negotiators Property Owner(s): Gilbert Oropez and Gilbert Urban Oropez Ruben Reyna and Maria Reyna Frank Spann and Sabrina Spann Damian Avila and Arturo Avila Jose Serrano and Margarita Serrano RCTC Potential Conflicts of Interest December 2, 2015 Page 2 Property Owner(s} (Continued}: Benn Shawnki and Annetta Clack Brian Laurent Hilario Torres John Ennis Lawrence Mullins and Magdalena Perez Norma Meraz Rene De la Trinidad and Sandra De la Trinidad Amalia Celis and Trinidad Olivas Gustavo Perez and Edna Serna Steve Zuniga Clinton Reese and Melba Reese Nicole Dyal Carlos Chacon and Diane Chacon RIVERSIDE COUNTY TRANSPORTATION COMMISSION www.rctc.org AGENDA* *Actions may be taken on any item listed on the agenda 9:30 a.m. Wednesday, December 9, 2015 BOARD ROOM County of Riverside Administrative Center 4080 Lemon Street, First Floor, Riverside, CA In compliance with the Brown Act and Government Code Section 54957.5, agenda materials distributed 72 hours prior to the meeting, which are public records relating to open session agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission’s website, www.rctc.org. In compliance with the Americans with Disabilities Act, Government Code Section 54954.2, and the Federal Transit Administration Title VI, please contact the Clerk of the Board at (951) 787-7141 if special assistance is needed to participate in a Commission meeting, including accessibility and translation services. Assistance is provided free of charge. Notification of at least 48 hours prior to the meeting time will assist staff in assuring reasonable arrangements can be made to provide assistance at the meeting. 1.CALL TO ORDER 2.PLEDGE OF ALLEGIANCE 3.ROLL CALL 4.PUBLIC COMMENTS – Each individual speaker is limited to speak three (3) continuous minutes or less. The Commission may, either at the direction of the Chair or by majority vote of the Commission, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Also, the Commission may terminate public comments if such comments become repetitious. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Commission shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items. Under the Brown Act, the Commission should not take action on or discuss matters raised during public comment portion of the agenda that are not listed on the agenda. Commission members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 5.APPROVAL OF MINUTES – NOVEMBER 12, 2015 Riverside County Transportation Commission Agenda December 9, 2015 Page 2 6. PUBLIC HEARING – ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF A PERMANENT STREET EASEMENT INTEREST IN A PORTION OF CERTAIN REAL PROPERTY BY EMINENT DOMAIN, MORE PARTICULARLY DESCRIBED AS ASSESSOR PARCEL NO. 118-183-019 LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA Page 1 Overview This item is for the Commission to: 1) Conduct a hearing to consider the adoption of resolutions of necessity, including providing all parties interested in the affected property and their attorneys, or their representatives, an opportunity to be heard on the issues relevant to the resolutions of necessity; 2) Make the following findings as hereinafter described in this report: a) The public interest and necessity require the proposed project; b) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; c) The real property to be acquired is necessary for the project; and d) The offer of just compensation has been made to the owner. 3) Adopt Resolution No. 15-023, “Resolution of Necessity for the Acquisition of Property Interests in Certain Real Property, by Eminent Domain, More Particularly Described as Assessor Parcel No. 118-183-019 (Caltrans Parcel No. 23767-1) Located in Corona, California Riverside County, California”, for the State Route 91 Corridor Improvement Project (SR-91 CIP), Between Pierce Street on the East to the Riverside County line on the West, in Riverside County, California. 7. ADDITIONS / REVISIONS – The Commission may add an item to the Agenda after making a finding that there is a need to take immediate action on the item and that the item came to the attention of the Commission subsequent to the posting of the agenda. An action adding an item to the agenda requires 2/3 vote of the Commission. If there are less than 2/3 of the Commission members present, adding an item to the agenda requires a unanimous vote. Added items will be placed for discussion at the end of the agenda. 8. CONSENT CALENDAR – All matters on the Consent Calendar will be approved in a single motion unless a Commissioner(s) requests separate action on specific item(s). Items pulled from the Consent Calendar will be placed for discussion at the end of the agenda. 8A. PROPOSED 2016 COMMISSION/COMMITTEE MEETING SCHEDULE Page 15 Overview This item is for the Commission to adopt its 2016 Commission/Committee Meeting Schedule. Riverside County Transportation Commission Agenda December 9, 2015 Page 3 8B. FISCAL YEAR 2014/15 COMMISSION AUDIT RESULTS Page 19 Overview This item is for the Commission to: 1) Receive and file the Fiscal Year 2014/15 a) Comprehensive Annual Financial Report (CAFR); b) Local Transportation Fund (LTF) Financial and Compliance Report; c) State Transit Assistance (STA) Fund Financial and Compliance Report; d) Proposition 1B Rehabilitation and Security Project (Proposition 1B) Accounts Financial and Compliance Report; e) Low Carbon Transit Operations Program (LCTOP) Account Financial and Compliance Report; f) Single Audit Report; g) Commercial Paper Compliance Report; h) Auditor Required Communications Report; i) Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; j) Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and k) Management certifications. 8C. PROPOSITION 1B CORRIDOR MOBILITY IMPROVEMENT ACCOUNT AUDIT REPORT FOR INTERSTATE 215 SOUTH WIDENING PROJECT Page 23 Overview This item is for the Commission to receive and file the Corridor Mobility Improvement Account (CMIA) Program Proposition 1B Bond-Funded Project EA No. 0F161/P2505- 0062 Audit Report for the Interstate 215 South widening project. 8D. QUARTERLY FINANCIAL STATEMENTS Page 34 Overview This item is for the Commission to receive and file the Quarterly Financial Statements for the period ended September 30, 2015. 8E. QUARTERLY SALES TAX ANALYSIS Page 41 Overview This item is for the Commission to receive and file the sales tax analysis for the Quarter 2 2015 (2Q 2015). Riverside County Transportation Commission Agenda December 9, 2015 Page 4 8F. QUARTERLY INVESTMENT REPORT Page 50 Overview This item is for the Commission to receive and file the Quarterly Investment Report for the quarter ended September 30, 2015. 8G. AGREEMENTS FOR ON-CALL RIGHT OF WAY PHASE I AND PHASE II ENVIRONMENTAL ASSESSMENT SERVICES Page 111 Overview This item is for the Commission to: 1) Award the following agreements to provide on-call right of way phase I and phase II environmental assessment services for a three-year term, in an amount not to exceed an aggregate value of $300,000; a) Agreement No. 16-31-002-00 with The Converse Professional Group (Converse); b) Agreement No. 16-31-027-00 with Leighton Consulting, Inc (Leighton); and c) Agreement No. 16-31-028-00 with Ninyo & Moore Geotechnical & Environmental Sciences Consultants (Ninyo & Moore); 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreements on behalf of the Commission; and 3) Authorize the Executive Director, or designee, to execute task orders awarded to contractors under the terms of the agreements. 8H. ADOPTION OF A RESOLUTION TO ACQUIRE TAX-DEFAULTED PROPERTY FROM THE RIVERSIDE COUNTY TREASURER-TAX COLLECTOR FOR THE SANTA ANA RIVER TRAIL PROJECT Page 139 Overview This item is for the Commission to: 1) Authorize the acquisition of a tax-defaulted property from the Riverside County Treasurer-Tax Collector for the Santa Ana River Trail project in compliance with state requirements in an amount not to exceed $62,955; and 2) Adopt Resolution No. 15-022, “Resolution of the Riverside County Transportation Commission Approving the Purchase of Tax-Defaulted Property from the Riverside County Treasurer-Tax Collector”. Riverside County Transportation Commission Agenda December 9, 2015 Page 5 9. AUTHORIZATION TO USE PUBLIC UTILITIES CODE § 130238 FOR THE PROCUREMENT OF SYSTEMS INTEGRATION AND TOLL OPERATIONS WORK IN SUPPORT OF INTERSTATE 15 EXPRESS LANES PROJECT Page 145 Overview This item is for the Commission to: 1) Make a finding by a two-thirds vote that the procurement of the technological equipment for the Interstate 15 Express Lanes project, as further described herein, qualifies for use of the Commission’s procurement authority under Public Utilities Code (PUC) § 130238 (Specialized Equipment Law); 2) Authorize the Executive Director, on behalf of the Commission, to undertake a procurement, including issuance of Request for Qualifications (RFQ) No. 16-31-042-00 and Request for Proposals (RFP) No. 16-31-043-00 to procure the systems integration and toll operations for the project using the Commission’s procurement authority under the Specialized Equipment Law and the Commission’s general authority under Chapter 5 of the Commission Procurement Policy Manual; and 3) Authorize the Executive Director to act on behalf of the Commission for all purposes under PUC § 130238. 10. REPROGRAMMING OF FUNDS AND AGREEMENT WITH CALTRANS RELATED TO STATE ROUTE 91 HIGH OCCUPANCY VEHICLE LANES PROJECT Page 150 Overview This item is for the Commission to: 1) Receive an update on the status of the State Route 91 High Occupancy Vehicle lanes (SR-91 HOV) project from Caltrans; 2) Support Caltrans’ recommendation to delete the work along the Union Pacific Railroad (UPRR) line near the Pachappa Overhead from the current project construction contract and repackage the work as the Pachappa Overhead project with the Commission serving as the lead agency; 3) Authorize the Executive Director, pursuant to legal counsel review, to execute an amendment to Agreement No. 08-31-002-00 to the SR-91 HOV project cooperative agreement with Caltrans related to the reduction in work scope and funding for the right of way and construction phases of the SR-91 HOV project on behalf of the Commission; Riverside County Transportation Commission Agenda December 9, 2015 Page 6 4) Authorize the Executive Director, pursuant to legal counsel review, to execute an amendment to Agreement No. 11-31-016-00 to the SR-91 HOV project cooperative agreement with Caltrans to transfer $1,770,600 of Congestion Mitigation and Air Quality (CMAQ) and $229,400 of 1989 Measure A Western County highway funds for a total transfer of $2 million from construction capital to construction support on behalf of the Commission; 5) Approve reprogramming to the Pachappa Overhead project up to $13 million of federal CMAQ funds and 1989 Measure A Western County highway funds, maximizing the remaining CMAQ balances once savings are realized from the SR-91 HOV project’s construction and right of way phases; 6) Authorize the Executive Director, pursuant to legal counsel review, to execute cooperative agreements with Caltrans for the right of way, Agreement No. 16-31-045-00, and construction phases , Agreement No. 16-31-046-00, of the Pachappa Overhead project on behalf of the Commission; 7) Authorize the Executive Director, pursuant to legal counsel review, to execute future agreements with Caltrans, UPRR, BNSF Railway (BNSF), and California Public Utilities Commission (CPUC) within the approved funding amounts for the Pachappa Overhead project; and 8) Submit the Federal Transportation Improvement Program (FTIP) amendment to the Southern California Association of Governments (SCAG) to reflect the Pachappa Overhead project and funding adjustments. 11. ELECTION OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION OFFICERS AND APPOINTMENT OF EXECUTIVE COMMITTEE MEMBERS Page 197 Overview This item is for the Commission to: 1) The Commission to conduct an election of officers for 2016 – Chair, Vice Chair, and Second Vice Chair; and 2) The Riverside County Board of Supervisors Commission members to appoint three representatives to the Executive Committee, if necessary. 12. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA 13. COMMISSIONERS / EXECUTIVE DIRECTOR REPORT Overview This item provides the opportunity for the Commissioners and the Executive Director to report on attended meetings/conferences and any other items related to Commission activities. Riverside County Transportation Commission Agenda December 9, 2015 Page 7 14. CLOSED SESSION 14A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 Agency Negotiator: Executive Director or Designee Property Owner(s): See Below Item APN(s) CPN(s) Property Owner(s) 1 102-091-007 23980 Gilbert Oropez and Gilbert Urban Oropez 2 102-091-008 23979 Ruben Reyna and Maria Reyna 3 102-091-009 23978 Frank Spann and Sabrina Spann 4 102-092-003 23981 Damian Avila and Arturo Avila 5 102-092-007 23982 Jose Serrano and Margarita Serrano 6 102-092-008 23983 Benn Shawnki and Annetta Clack 7 102-092-015 23984 Brian Laurent 8 102-092-016 23985 Hilario Torres 9 102-092-017 23986 John Ennis 10 102-101-028 23987 Lawrence Mullins and Magdalena Perez 11 102-101-027 23988 Norma Meraz 12 102-101-026 23989 Rene De la Trinidad and Sandra De la Trinidad 13 102-101-019 23990 Amalio Celis and Trinidad Olivas 14 102-101-018 23991 Gustavo Perez and Edna Serna 15 102-101-017 23992 Steve Zuniga 16 102-101-016 23993 Clinton Reese and Melba Reese 17 102-101-015 23994 Nicole Dyal 18 102-101-004 23995 Carlos Chacon and Diane Chacon 14B. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION Pursuant to Government Code Section 54956.9 (d)(1) Case No(s). RIC 1312365 15. ADJOURNMENT The next Commission meeting is scheduled to be held at 9:30 a.m., Wednesday, January 13, 2016, Board Room, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. RIVERSIDE COUNTY TRANSPORTATION COMMISSION ROLL CALL DECEMBER 9, 2015 County of Riverside, District I County of Riverside, District II County of Riverside, District HI County of Riverside, District IV County of Riverside, District V City of Banning City of Beaumont City of Blythe City of Calimesa City of Canyon Lake City of Ca~hedral City City of Coachella City of Corona City of Desert Hot Springs City of Eastvale City of Hemet City of Indian Wells City of Indio City of Jurupa Valley City of La Quinta City of Lake Elsinore City of Menifee City of Moreno Valley City of Murrieta City of Norco City of Palm Desert City of Palm Springs City of Perris City of Rancho Mirage City of Riverside City of San Jacinto City of Temecula City of Wildomar Governor's Appointee, Caltrans District 8 RIVERSIDE COUNTY TRANSPORTATION COMMISSION COMMISSIONER SIGN-IN SHEET DECEMBER 9, 2015 NAME AGENCY E_MAIL ADDRESS . ot--. DETACH AND SUBMIT TO THE CLERK OF THE BOARD DATE: /2 -2-/.5 CHECK IF 1 .,,..SUBJECT OF ....,-~ f -I-tJTf IA~ .L _J PUBLIC COMMENTS: IQ/' PUBLIC COMMENTS:....L-/7J/I /(I If/'/ I 0 I) vvl'rtr"5'11'(.JJ AGENDA ITEM NO.: SUBJECT OF (AS LISTED ON THE AGENDA) AGENDA ITEM: __________________ _ NAME: AYlltl_/d San ffl!j ve f PHONE No.: ____ _ ADDRESS: ________________________________ ~ STREET CITY t REPRESENTING: :;dJtho·11 ca/,'-( fl.5sq("_ () f &-aver/'/J/,lfo~ NO.: _____ _ ZIP CODE NAME OF AGENCY I ORGANIZATION I GROUP BUSINESS ADDRESS: ____________________________ _ STREET CITY ZIP CODE DRAFT PLAN ~g1~~TP SCS JOBS AIR QUALITY HOUSING GREEN SPACE ACTIVE TRANSPORTATION PUBLIC HEALTH GOODS MOVEMENT POVERTY TRAFFIC & MOBILITY PUB LI C HEARINGS & E L ECTED OFFIC I AL BRIEFING I NFORM A T I O N ON T H E REVERSE SIDE BE SURE TO VISIT SCAGRTPSCS.NET PUBLIC HEARING DATES Tuesday, January 12, 7 :00 p.m. Tuesday, January 19, 10:00 a.m. Saturday, January 23, 10:00 a .m. TO BE HELD CONCURRENTLY AT THESE LOCATIONS Imperial County 1405 N. Imperial Avenue, Suite 1 El Centro, CA 92243 Los Angeles County 818 W. 7'h Street, 12 'h Floor Los Angeles, CA 90017 Orange County 600 S. Main Street, Suite 912 Orange, CA 92868 Riverside County 3403 10'h Street, Suite 805 Riverside, CA 9250 1 San Bernardino County 1170 W. 3rd Street, Sui t e 140 San Bernard ino, CA 92410 Ventu ra County 950 County Square Drive, Su ite 101 Ventura, CA 93003 A PUBLIC HEARING OR ELECTED OFFICIAL BRIEFING IN YOUR COMMUNITY SCHEDULE OF ELECTED OFFICIAL BRIEFINGS Imperia l County January 27, 5:00 p .m. -7:00 p .m. IC TC Board Meeting County Board Chambe rs 940 Main Street El Centro, CA 9224 3 Los Angeles County January 11, 1:30 p .m . -3:30 p .m . South Bay Environmental Services Center 20285 S. Western Avenue , #100 Torrance, CA 90501 January 13 , 6:00 p .m . -8 :00 p .m . Gateway Cities COG Offi ce 16401 Paramount Blvd Paramount, CA 90723 January 14, 12 :00 p .m . -1:30 p .m . Plummer Park -Fiesta Hall 7377 Santa Monica Boulevard West Hollywood, CA 90069 January 25, 10:00 a.m . -1 2:00 p.m. North Cou nty Tr ans portation Coal it ion City of Pal mda le-City Hall 38300 N . Sie rr a Hig hway Palmda le, 93550 January 26, 2:30 p .m. -4:30 p .m . Monrovia Commun ity Center 119 W Palm Avenu e Monrovia, CA 91016 Orange County January 12, 9:00 a.m. -11 :00 a.m . OCTA-First Floor Co nference RM 103/104 600 S. Ma in Street Orange, CA 9286 3 January 20, 5:30 p .m. -7:30 p .m . OCTA-First Floor Con fe rence RM 103/104 600 S. Main Street Orange, CA 92863 Riverside County January 11 , 12 :00 p.m . -1:00 p .m . CVAG Offices 73-710 Fred Waring Way Palm Desert, CA 92260 January 13, 11 :00 a.m. -12:30 p .m . Riverside County Administrative Center Board of Supervisors Chambers 4080 Lemon Street, 1" Floor Riverside, CA 92S0 1 San Bernardino County January 6, 11 :30 a.m. -1 :00 p .m . San Bernardino Associated Governments Santa Fe Depot-SANBAG 1" Floor Lobby 1170 W . 3rd Street San Berna rdino, CA 92410 January 15, 10:30 a.m . -12:00 p .m. Town of Apple Valley Conference Center 14975 Dale Evans Parkway Apple Valley, CA 92307 Ventura County January 14, 5:00 p .m . -7:00 p .m . VCOG Board Meeting Camarillo City Council Chambers 601 Carmen Drive Camarillo, CA 93010 {.Necesita ayuda de interprete durante una de nuestras reuniones? Para solicitar un interprete, sfrvase comunicarse par correo electr6nico al : rtpscs@scag .ca.gov par lo menos 72 horas antes de la reunion. ~~~1J o ~;E=:(£~~r:p~~~~gf~39J · ~:(£~1JD ~~lfflf®mif8 72 1j\fcy pg~~r !l!~ftf:*~ contactus@scag .ca .gov ~l:B ~~ g~39J ~>J( 0 ~QIOI WB.~ ~-9-£1QI Al~foPI 72 Al{! ~OJI rtpscs@scag.ca.gov OJI OIDJI~ ~ 5!.LHA~Ai ~QI~ B.~o~Al71 l:l~i8Llq. Can phien djch Cl mot trong nhfrng buoi hop cua chung toi? Quy vj c6 the yeu cau mot thong djch vien qua email rtpscs@scag.ca.gov tn16'c 72 tieng. For more information, visit scagrtpscs.net or email rtpscs@scag.ca.gov AGENDA ITEM 5 MINUTES RIVERSIDE COUNTY TRANSPORTATION COMMISSION MINUTES Thursday, November 12, 2015 1. CALL TO ORDER The Riverside County Transportation Commission was called to order by Chair Daryl Busch at 9:33 a.m. in the Board Room at the Eastern Municipal Water District, 2270 Trumble Road, Perris, California, 92572. 2. PLEDGE OF ALLEGIANCE Vice Chair Scott Matas led the Commission in a flag salute. 3. ROLL CALL Commissioners/Alternates Present Commissioners Absent Marion Ashley Linda Krupa John J. Benoit Rusty Bailey Bob Magee Steven Hernandez Ben Benoit Scott Mann Brenda Knight John Bulinski Scott Matas Troy Strange Daryl Busch Jesse Molina John F. Tavaglione Joseph DeConinck Michael Naggar Ginny Foat* Greg Pettis Deborah Franklin Robert Radi Rick Gibbs Dana Reed Dawn Haggerty Adam Rush Berwin Hanna Karen Spiegel Jan Harnik Chuck Washington Kevin Jeffries Ted Weill Frank Johnston Ella Zanowic Andrew Kotyuk *Arrived after the meeting was called to order 4. PUBLIC COMMENTS There were no requests to speak from the public. Riverside County Transportation Commission Minutes November 12, 2015 Page 2 5. APPROVAL OF MINUTES – OCTOBER 14, 2015 MEETING MINUTES M/S/C (Matas/Rush) to approve the October 14, 2015 minutes as submitted. Abstain: Kotyuk and Weill 6. ADDITIONS / REVISIONS There was a revision to the attachment to Agenda Item 7D, “California Transportation Commission’s Active Transportation Program Cycle 2 for Fiscal Years 2016/17 – 2018/19”. 7. CONSENT CALENDAR M/S/C (Mann/Washington) to approve the following Consent Calendar items. 7A. SINGLE SIGNATURE AUTHORITY REPORT Receive and file the Single Signature Authority report for the first quarter ended September 30, 2015. 7B. FUNDING PLAN FOR INTERSTATE 15 EXPRESS LANES PROJECT 1) Provide input and direct staff regarding the preliminary funding plan for the Interstate 15 Express Lanes project; and 2) Approve $60 million in federal Congestion Mitigation and Air Quality (CMAQ) or Surface Transportation Program (STP) funds for costs related to the I-15 Project and direct staff to program the funding in the 2015 Federal Transportation Improvement Program (FTIP). 7C. AMENDMENT TO AGREEMENT WITH COFIROUTE USA, LLC FOR ELECTRONIC TOLL AND TRAFFIC MANAGEMENT SYSTEMS INTEGRATION AND IMPLEMENTATION FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT 1) Approve an increase in the contingency amount for Agreement No. 14-31-071-00 with Cofiroute USA, LLC (Cofiroute) related to additional scope of work items for the electronic toll and traffic management systems integration and implementation for the State Route 91 Corridor Improvement Project (91 Project) for an additional amount of $837,930 and a total not to exceed $27,517,930; and 2) Authorize the Executive Director or designee to approve contingency work up to the total amount not to exceed as required for the project. Riverside County Transportation Commission Minutes November 12, 2015 Page 3 7D. CALIFORNIA TRANSPORTATION COMMISSION’S ACTIVE TRANSPORTATION PROGRAM CYCLE 2 FOR FISCAL YEARS 2016/17 – 2018/19 1) Approve the Riverside County Active Transportation Program (ATP) projects for inclusion in the Metropolitan Planning Organization (MPO) ATP Regional Program Cycle 2 consisting of the highest scoring projects identified in Table 2 in the total amount of $9,204,000; 2) Approve programming ATP and/or a combination of SB 821 and federal funds of up to $2,293,000 for one or more projects scoring 80/90 points in order to maximize Riverside County MPO ATP funds; 3) Approve programming additional ATP funds to projects scoring 80/90 should any ATP Cycle 2 funds become available based on Caltrans findings of ineligible project line item costs; 4) Submit the recommended projects to the Southern California Association of Governments (SCAG) for inclusion in the MPO ATP Regional Program and subsequent submittal to the California Transportation Commission (CTC) for final approval in January 2016; 5) Submit the MPO ATP regional projects to SCAG for inclusion in the Federal Transportation Improvement Program (FTIP) programming; and 6) Direct staff to coordinate with the MPO ATP Regional Program project sponsors regarding timely funding allocations, obligations, and project delivery. 7E. METROLINK BUDGET ACTIONS TO SUPPORT LOCOMOTIVE PROCUREMENTS 1) Approve Commission participation in the Metrolink lease of BNSF Railway (BNSF) locomotives in the amount of $1,585,231; 2) Approve Commission participation in the optional procurement of 17 new Metrolink Tier IV locomotives in the amount of $2.7 million; 3) Approve Memorandum of Understanding (MOU) No. 16-25-014-02, Amendment No. 1 to MOU No. 16-25-014-01, with the Southern California Regional Rail Authority (SCRRA) for additional funding in the amount of $1,585,231 related to the locomotives lease for a total operating budget subsidy amount of $15,577,255 and for authorization to use $2.7 million of Fiscal Year 2015/16 or carryover rehabilitation/renovation funds for the procurement of the Tier IV locomotives; and 4) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission. Riverside County Transportation Commission Minutes November 12, 2015 Page 4 7F. AGREEMENT FOR STATION ELECTRICAL SERVICES 1) Award Agreement No. 16-24-005-00 to Elite Electric, Inc. for the provision of station electrical maintenance and repair services, for a three-year term, plus two two-year options to extend the agreement, in an amount of $603,700, plus a contingency of $60,370 for a total amount not to exceed $664,070; 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement, including option years, on behalf of the Commission; 3) Authorize the Executive Director, or designee, to execute task orders awarded to the contractor under the terms of the agreements; 4) Authorize the Executive Director, or designee, to approve contingency work up to the total amount not to exceed as required for these services; 5) Authorize $935,000 for capital improvements to complete a light-emitting diode (LED) lighting retrofit of the commuter rail stations, including the new Perris Valley Line stations; and 6) Authorize the Executive Director, pursuant to legal counsel review, to execute the agreement(s) for LED lighting retrofit on behalf of the Commission. 7G. AGREEMENT FOR STATION PEST CONTROL SERVICES 1) Award Agreement No. 16-24-015-00 to Global Pest Solutions for the provision of station pest control services for a three-year term, plus two two-year options to extend the agreement, in an amount of $34,776 for maintenance and on-call services, plus a contingency amount of $3,478, for a total amount not to exceed $38,254; 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement, including option years, on behalf of the Commission; 3) Authorize the Executive Director, or designee, to execute task orders awarded to the contractor under the terms of the agreement; and 4) Authorize the Executive Director, or designee, to approve contingency work up to the total amount not to exceed as required for these services. 7H. OPERATION OF THE FREEWAY SERVICE PATROL PROGRAM IN RIVERSIDE COUNTY 1) Approve Agreement No. 16-45-033-00 with the California Department of Transportation (Caltrans) for the operation of the Riverside County Freeway Service Patrol (FSP) program in the amount of $1,559,523 in state funding for FY 2015/16; and Riverside County Transportation Commission Minutes November 12, 2015 Page 5 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission. At this time, Commissioner Ginny Foat arrived at the meeting. 8. TRANSPORTATION UNIFORM MITIGATION FEE REGIONAL ARTERIAL PROGRAM – PROJECT DELIVERY UPDATE Shirley Medina, Planning and Programming Director, presented the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program project delivery update, highlighting the following areas: • TUMF Regional Arterial Commission actions; • Funding, programming, and delivery statuses; • TUMF Regional Arterial project funding commitments; • Project funding needs: Three projects waiting for programming/funding for right of way or construction – I-15/Railroad Canyon Interchange, I-15/Limonite Interchange, and Van Buren Boulevard widening (Washington Street to Wood Road); • Estimated programming year end capacity, estimated TUMF Regional Arterial revenues, and developer credit reimbursement balance; and • Next TUMF Regional Arterial Program for Cycle 2. Executive Director Anne Mayer stated there are three remaining projects and staff is working closely with those jurisdictions to ensure those projects are shovel ready when funding becomes available. Additionally, the Commission will not make any other decisions related to the TUMF program until Western Riverside Council of Governments (WRCOG) completes its update of the TUMF Nexus Study. M/S/C to receive and file the Transportation Uniform Mitigation Fee (TUMF) Regional Arterial Program – Project Delivery Update. 9. COACHELLA VALLEY – SAN GORGONIO PASS RAIL CORRIDOR: DELIVERY OF THE PHASE 1 ALTERNATIVES ANALYSIS Robert Yates, Multimodal Services Director, presented the Coachella Valley – San Gorgonio Pass Rail Corridor delivery of the Phase 1 Alternatives Analysis, highlighting the following areas: • Rail route alternatives studied; • Recommendation – Route Alternative 1 will be carried forward into the Tier 1 environmental impact study and service development plan, and the No-Build Alternative will also be carried forward; and Riverside County Transportation Commission Minutes November 12, 2015 Page 6 • A map depicting the Route Alternative 1 and the No Build Alternative: existing rail and bus. In response Commissioner Ginny Foat’s question about the ability to connect rail service from Palm Springs International Airport to the L.A./Ontario International Airport (Ontario Airport), Robert Yates replied none of the alternatives directly serve the airport. Additionally, the closest rail lines are highly constrained with single-track infrastructure and significant freight traffic, which would require high infrastructure costs. Anne Mayer referred to the red line on the alternatives map and clarified this is Union Pacific’s mainline for the Ports of Los Angeles and Long Beach. She stated although this line would get commuters close to the airport, there would be freight conflict due to the volume of traffic and the length of time to get the trains through. Also, the more populated alternative shown by the blue line on the map will provide for higher ridership. Robert Yates added the Commission owns the passenger rail rights on the San Bernardino subdivision, which is a significant factor on reducing project costs. He explained there are triple tracks on most of this line so the lower infrastructure costs plus the ability to run trains without engaging in significant negotiations with Union Pacific also brought the recommended alternative forward as well. In response to Commissioner Robert Radi’s question for the total travel time from the city of Indio to Los Angeles Union Station, Robert Yates replied about three hours and twenty minutes. Commissioner Dana Reed suggested including Los Angeles World Airports since it runs a nonstop bus from LAX to Los Angeles Union Station every 20 minutes as a means for airport connectivity. Commissioner Greg Pettis expressed this action is going to explode the opportunity for tourism. He stated once this project is completed, the next step will be connecting Indio to Phoenix, which will be a great opportunity for economic development. At Commissioner Foat’s request, Robert Yates explained the next steps in the process, which includes the completion of the environmental impact report and the service development plan. He stated the Federal Railroad Administration (FRA) approved the work plan, the schedule, and the budget. As projected, the Commission will have rail service in seven years. At Commissioner Jan Harnik’s request, Robert Yates explained the process used in the alternatives analysis to evaluate each alternative, including the significant issues of cost to construct and conflict with freight. He noted most of the alternatives evaluated are Riverside County Transportation Commission Minutes November 12, 2015 Page 7 single-track freight lines so from that prospective, it is very difficult to run passenger rail on those freight lines without significant costs. In response to Commissioner Jesse Molina’s question about the timeline, Robert Yates reiterated the project is one-year into a seven-year process. Anne Mayer stated with respect to Ontario Airport, access by rail this is a significant and complex conversation in San Bernardino County. Southern California Association of Governments (SCAG) is preparing another study for the I-10 corridor and access between the airports. She then explained staff is seeking MSRC grant funds for demonstration trains at the Coachella Valley Music and Arts Festival and the Stagecoach music festival. Also, if this corridor gets approved, it could be eligible for cap and trade funding. She expressed appreciation to the elected officials, the project team, and the Coachella Valley Association of Governments for their efforts on this project. M/S/C (Pettis/Franklin) to: 1) Receive and file the draft Coachella Valley – San Gorgonio Pass Rail Corridor Study Alternatives Analysis (Alternatives Analysis); and 2) Authorize staff to submit the draft Alternatives Analysis to the Federal Railroad Administration (FRA) for its review and approval. 10. ITEM(S) PULLED FROM CONSENT CALENDAR FOR DISCUSSION There were no items pulled from the Consent Calendar. 11. COMMISSIONERS/EXECUTIVE DIRECTOR’S REPORT 11A. Commissioner Spiegel expressed appreciation to the 91 Project team for their efforts. 11B. Commissioner Joey DeConinck expressed appreciation to staff for doing an excellent job at the Transportation Summit in the city of Blythe as there were a lot of needs discussed. He also stated the city of Blythe held a groundbreaking ceremony on its first off ramp improvement with the help of Caltrans, the county of Riverside, and the city of Blythe. 11C. Commissioner Scott Mann announced Commissioner Spiegel received the Outstanding Public Service Award from the League of Cities – Riverside County Division. 11D. Chair Busch announced the opening for the Perris Valley Line (PVL) will be December 11. Riverside County Transportation Commission Minutes November 12, 2015 Page 8 11E. Anne Mayer: • Announced the PVL Dedication Ceremony is scheduled for December 11 and Deputy Secretary Victor Mendez from the U.S. Department of Transportation will attend. • Expressed appreciation for Commissioner Spiegel’s comments related to the 91 Project. She expressed the project team, Commission staff, and the city of Corona have been partners for the 10 years in developing and ensuring this project works for the Corona community. She discussed the negative comments on social media related to this project and how staff is working very hard to ensure there are positive stories getting out in the news and social media about this project. In response to Commissioner Pettis’ suggestion to have staff send sample tweets to the Commissioners, Anne Mayer concurred. • Announced the Commission submitted its letter of interest for a TIFIA loan to U.S. Department of Transportation related to the I-15 Express Lanes project, which was very well received by all of the delegation members. At this time, Commissioners Andrew Kotyuk and Adam Rush as well as Caltrans District 8 Representative John Bulinski left the meeting. Commissioners Marion Ashley, Michael Naggar, and Chuck Washington recused themselves from the Closed Session items. 12. CLOSED SESSION 12A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code Section 54956.8 Agency Negotiator: Executive Director or Designee Property Owner(s): See Below Item APN(s) CPN(s) Property Owner(s) 1 (portions of) 307-070-001 307-040-004 N/A The State of California, Department of Water Resources 2 426-060-001 426-430-001 426-420-001 426-420-002 426-420-004 N/A William R. Sweeney, Nancy B. Cunningham, Lori A. Sukoff, Gregory J. Buchanan, William J. Buchanan, Nuevo Develops, Inc. Riverside County Transportation Commission Minutes November 12, 2015 Page 9 12B. CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION Pursuant to Government Code Section 54956.9 (d)(1) Case No(s). RIC 1313171 There were no announcements from Closed Session items. 13. ADJOURNMENT There being no further business for consideration by the Riverside County Transportation Commission, Chair Busch adjourned the meeting at 10:28 a.m. The next Commission meeting is scheduled to be held at 9:30 a.m., Wednesday, December 9, 2015, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside. Respectfully submitted, Jennifer Harmon Clerk of the Board AGENDA ITEM 6 PUBLIC HEARING RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Mark Lancaster, Right of Way Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Adoption of a Resolution of Necessity for the Acquisition of a Permanent Street Easement Interest in a Portion of Certain Real Property by Eminent Domain, More Particularly Described as Assessor Parcel No. 118-183-019 Located in Corona, Riverside County, California, for the State Route 91 Corridor Improvement Project, Between Pierce Street on the East to the County Line on the West, in Riverside County, California STAFF RECOMMENDATION: This item is for the Commission to: 1) Conduct a hearing to consider the adoption of a resolution of necessity, including providing all parties interested in the affected property and their attorneys, or their representatives, an opportunity to be heard on the issues relevant to the resolution of necessity; 2) Make the following findings as hereinafter described in this report: a) The public interest and necessity require the proposed project; b) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; c) The real property to be acquired is necessary for the project; and d) The offer of just compensation has been made to the owner. 3) Adopt Resolution No. 15-023, “Resolution of Necessity for the Acquisition of Property Interests in Certain Real Property, by Eminent Domain, More Particularly Described as Assessor Parcel No. 118-183-019 (Caltrans Parcel No. 23767-1) Located in Corona, California Riverside County, California”, for the State Route 91 Corridor Improvement Project (SR-91 CIP), Between Pierce Street on the East to the Riverside County line on the West, in Riverside County, California. BACKGROUND INFORMATION: The Commission is being asked to consider the adoption of this resolution to acquire property interests in the parcel listed below. This interest is required for construction of the SR-91 CIP. The power of eminent domain is used by the Commission only as a last resort to obtain interests necessary for public highway projects after 1) negotiations have stalled; or 2) the owner has requested the Commission proceed directly to eminent domain for tax or other Agenda Item 6 1 advantages; or 3) the eminent domain process is necessary to clear the title to the property. In this case, an offer of just compensation has been made to the property owner for the full Fair Market Value as determined by an appraisal. Commission staff attempted to negotiate an amicable settlement in good faith and will continue to do so throughout the process. Fair Market Value is defined by the state of California and is one of the most inclusive definitions in the United States. It requires the highest and best use of the property be considered. All of the Commission’s appraisals must meet the California definition of Fair Market Value. One of the requirements for acquiring property for improvement projects is that an offer of just compensation be made to the owners of the property. The Commission makes these offers in person whenever possible. The amount of compensation is determined by appraisals prepared by independent appraisal firms licensed by the Bureau of Real Estate Appraisers. The content of these appraisals, what elements are considered in them, and the methodologies used in the preparation are all proscribed by various laws and the Uniform Standards of Appraisal Practice (USPAP), published by the Appraisal Foundation. The Federal Government recognizes the USPAP as generally accepted appraisal standards and requires USPAP compliance for appraisers in federally related transactions. Every appraisal calculates the market value of the acquisition as defined by the California Code of Civil Procedure, based on the highest and best use, as defined in USPAP, and includes consideration of severance damages and project benefits, which is also defined in the California Code of Civil Procedure. In every case, the owner is invited to accompany the appraiser during the site visit so that as much information as possible is considered in the appraisal. A review appraisal prepared by a different certified appraiser is then conducted to ensure all proper procedures have been followed. Additionally, in accordance with state law, every owner is offered up to $5,000 to reimburse them for the cost to have their own appraisal prepared. Staff will bring to the Commission those interests that meet one of the criteria above. The timing of these resolutions will balance the need to give the owners as much time as possible to reach an agreement, while at the same time allowing enough time for the Commission to go through the process to obtain possession in time to avoid delays to the design-build contractor. The legal process from adoption of the resolutions of necessity to receiving legal possession of the properties takes approximately 150 days. California eminent domain law provides that a public entity may not commence with eminent domain proceedings until its governing body has adopted a resolution of necessity, which resolution may only be adopted after the governing body has given each party with an interest in the affected property, or their representatives, a reasonable opportunity to appear and be heard on the following matters: 1) The public interest and necessity require the proposed project; 2) The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3) The real property to be acquired is necessary for the project; and 4) The offer of just compensation has been made to the property owner. Agenda Item 6 2 Since an agreement has not been reached with the property owner, it may be necessary to acquire necessary interests by eminent domain. The initiation of the eminent domain process is accomplished by the Commission’s adoption of a resolution of necessity for the affected property. Record property owners must be afforded an opportunity to appear at the hearing and lodge objections. A notice of this hearing was sent by first class mail to the property owner, and stated the Commission’s intent to consider the adoption of a resolution, the right of the property owner to appear and be heard on these issues, and that failure to file a written request to appear would result in a waiver of the right to appear and be heard. The Commission scheduled this hearing at which all persons who filed a written request in compliance with applicable law may appear and be heard. An aerial view of the parcel subject to this staff report in relation to the SR-91 CIP is attached. Finding 1: Public Interest and Necessity Require the Project SR-91 in Riverside County ranks among the nation’s worst commutes. Stop-and-go traffic is the norm, especially during morning and late afternoon rush hours. Traffic congestion on eastbound SR-91 between the cities of Anaheim and Corona is routinely among the worst 15 areas in the nation. SR-91 is continuing to experience increased congestion as a result of population growth in Riverside and San Bernardino Counties and the increase in jobs in Los Angeles and Orange Counties. Demographic projections for the Southern California Association of Governments (SCAG) region show population and employment in Riverside and Orange Counties are forecast to increase substantially by 2035. As a result, traffic volumes on SR-91 are expected to increase by approximately 50 percent by 2035, which would result in even greater congestion and delays on SR-91. The existing travel demand on SR-91 has led to a heavy directional commute pattern between Los Angeles, Orange and Riverside Counties that is projected to continue into the future. SR-91 is the only major highway that links Orange and Riverside Counties. Extending from the Orange County/Riverside County line in the city of Corona to Pierce Street in Riverside, the SR-91 CIP will add mixed flow lanes, tolled express lanes, improve interchanges, bridges, ramps, and local streets. New freeway to freeway ramp connections between the SR-91 and Interstate 15 also will be made. The SR-91 CIP is designed to reduce delays, improve air quality, offer a choice between regular (mixed flow) lanes and express lanes, allow faster emergency response, relieve local street congestion, and provide better access to public transit and commuter rail. Agenda Item 6 3 Finding 2: The Project is Planned or Located in a Manner Most Compatible with Greatest Public Good and Least Private Injury A thorough analysis was conducted to find the single best location for the SR-91 CIP. Environmental analyses and findings indicate the chosen alignment uniquely satisfies engineering, public health, and environmental issues, and is the most compatible with the greatest public good and least private injury. To minimize private injury, a thorough analysis regarding the need for each property and each interest was conducted in the planning stages of the SR-91 CIP. Efforts during the planning stages included conducting public outreach meetings and seeking feedback about the SR-91 CIP alignment and potential impacts. Staff also met regularly with various local agencies and businesses to determine if modifications to the alignment were necessary to minimize impacts. These efforts continued over the course of years to ensure the alignment design achieved the greatest public good with the least private injury. As part of the acquisition process, unless settlement was reached within the first 30 days after an offer was made, every property owner was provided an opportunity to participate in meetings with project staff. The goal of these meetings was to minimize private injury not only on the basis of information staff obtained through the planning process, but also on the information provided by the property owners. As a result, staff has in some cases included mitigation measures to reduce and minimize impacts to the property. Compliance with the California Environmental Quality Act has been satisfied by Caltrans’ certification of an environmental impact report (EIR) in its role as lead agency on August 8, 2012, and the Commission’s subsequent consideration of that certified EIR in its role as a responsible agency on November 14, 2012. Finding 3: The Real Property to be Acquired is Necessary for the Project The property interest sought below has been analyzed to determine if a feasible design alternative that exists would alleviate the need for the interest. As indicated above, the owner of the interest was invited to meet with project staff and provide input to address any concerns the owner may have with the design of the SR-91 CIP in the manner proposed and the necessity of the acquisition. To the extent the property owner raised such concerns; staff took those concerns into consideration and attempted to make design modifications as feasible as possible. In the end, staff recommends the following interests in real property are necessary for the project. RON No. 15-023 — Owner: Midas Realty Corporation; APN 118-183-019; CPN 23767-1 The real property commonly known as Assessor Parcel No. (APN) 118-183-019 is owned in fee by Midas Realty Corporation and is a parcel comprised of approximately 24,480 square feet. Agenda Item 6 4 It is located at 406 South Lincoln Avenue, Corona, California, on the west side of Lincoln Avenue, between D Street and 5th Street, south of the SR-91 in the City of Corona. The property is currently used as an automobile service facility. The Commission is now seeking to acquire a 2,232 square foot non-exclusive permanent street easement interest in a portion of the property. The net land area of the larger parcel (exclusive of the permanent easement) will be 22,248 square feet. Since the property sought to be acquired for the project is already physically encumbered with street improvements (Lincoln Avenue), the structure, drainage, present use, topography, land shape, vehicular accessibility, as well as highest and best use, will remain effectively unchanged. An offer of just compensation for the property was made to Midas Realty Corporation on August 12, 2015. The legal definition(s), legal description(s), and/or plot map(s) of the larger parcel and the part to be acquired are attached as an exhibit to Resolution of Necessity No. 15-023. An aerial view of the parcel and the parcel’s relationship to the SR-91 CIP is also attached. A Notice of Hearing to the property owners was mailed on October 23, 2015. Finding 4: Offers of Just Compensation Have Been Made to the Property Owners A litigation guarantee was obtained from Commonwealth Land Title Insurance Company to confirm and identify the parties with an interest in the parcels affected by the SR-91 CIP. The Commission then served the affected property owner and other interested parties as appropriate, with a notice of the Commission’s decision to appraise the property. The Commission had the real property interests appraised by Scott A. Lidgard, MAI, CCIM, to establish the Fair Market Value of the property the Commission is seeking to acquire from the parties identified herein. An offer of just compensation was made to the property owner to purchase the property interests, based on the approved appraisal, as required by Section 7267.2 of the California Government Code. In this instance, the Commission will acquire the interest necessary and set forth above from the property owner to ensure the property will be available to meet the time frames associated with the construction of the SR-91 CIP. Fiscal Impact There is no fiscal impact due to adoption of the resolution of necessity. All property acquisition expenses are included in the SR-91 CIP budget. Attachment: Resolution of Necessity No. 15-023 Agenda Item 6 5 RESOLUTION NO. 15-023 RESOLUTION OF NECESSITY FOR THE ACQUISITION OF A NON-EXCLUSIVE PERMANENT STREET EASEMENT INTEREST, BY EMINENT DOMAIN, IN A PORTION OF PROPERTY IDENTIFIED AS ASSESSOR PARCEL NO. 118-183-019, LOCATED IN CORONA, RIVERSIDE COUNTY, CALIFORNIA, FOR THE STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT, WHICH COVERS THE AREA BETWEEN PIERCE STREET ON THE EAST TO THE COUNTY LINE ON THE WEST, IN RIVERSIDE COUNTY, CALIFORNIA WHEREAS, the Riverside County Transportation Commission (the “Commission”) proposes to acquire a non-exclusive permanent street easement interest in a portion of certain real property, located in Riverside County, California, a parcel of land identified as Assessor Parcel No. 118-183-019 (CPN 23767-1), for the SR-91 Corridor Improvement Project in Riverside County, California, pursuant to the authority granted to it by section 130220.5 of the California Public Utilities Code, and section 1240.120 of the California Code of Civil Procedure; and WHEREAS, pursuant to section 1245.235 of the California Code of Civil Procedure, the Commission scheduled a public hearing for Wednesday, December 9, 2015 at 9:30 a.m., at the County Administration Building, Board of Supervisors Chambers, at 4080 Lemon Street, Riverside, California, and gave to each person whose property is to be acquired and whose name and address appeared on the last equalized county assessment roll, notice and a reasonable opportunity to appear at said hearing and be heard on the matters referred to in section 1240.030 of the California Code of Civil Procedure; and WHEREAS, said hearing has been held by the Commission, and the affected property owner and other interested parties were afforded an opportunity to be heard on said matters; and WHEREAS, the Commission may now adopt a Resolution of Necessity pursuant to section 1240.040 of the California Code of Civil Procedure; NOW, THEREFORE, THE COMMISSION DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: Section 1. Compliance with California Code of Civil Procedure. There has been compliance by the Commission with the requirements of section 1245.235 of the California Code of Civil Procedure regarding notice and hearing. Section 2. Public Use. The public use for the non-exclusive permanent street easement interest to be acquired is for the SR-91 Corridor Improvement Project in Riverside County, California. Section 130220.5 of the California Public Utilities Code authorizes the Commission to acquire, by eminent domain, property necessary for such purposes. Section 3. Description of Property. Attached and marked as Exhibit “A” are the legal description and depiction of the property to be acquired by the Commission, and which 6 describe the general location and extent of the property with sufficient detail for reasonable identification. Section 4. Findings. The Commission hereby finds and determines each of the following: (a) The public interest and necessity require the proposed project; (b) The proposed project is planned or located in the manner that will be most compatible with the greatest public good and least private injury; (c) The property defined, described and depicted in Exhibit “A” is necessary for the proposed project; and (d) The offer required by section 7267.2 of the California Government Code was made. Section 5. Use Not Unreasonably Interfering with Existing Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights-of-way appropriated to existing public uses. The legal descriptions of these easements and rights-of-way are on file with the Commission and describe the general location and extent of the easements and rights-of-way with sufficient detail for reasonable identification. In the event the herein described use or uses will not unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, counsel for the Commission is authorized to acquire the herein described interest subject to such existing public use(s) pursuant to section 1240.510 of the California Code of Civil Procedure. Section 6. More Necessary Public Use. Some or all of the real property affected by the interest to be acquired is subject to easements and rights of way appropriated to existing public uses. To the extent that the herein described use or uses will unreasonably interfere with or impair the continuance of the public use as it now exists or may reasonably be expected to exist in the future, the Commission finds and determines that the herein described use or uses are more necessary than said existing public use. Counsel for the Commission is authorized to acquire the herein described real property appropriated to such existing public uses pursuant to section 1240.610 of the California Code of Civil Procedure. Staff is further authorized to make such improvements to the affected real property that it determines are reasonably necessary to mitigate any adverse impact upon the existing public use. Section 7. Further Activities. Counsel for the Commission is hereby authorized to acquire the hereinabove described real property in the name of and on behalf of the Commission by eminent domain, and counsel is authorized to institute and prosecute such legal proceedings as may be required in connection therewith. Legal counsel is further authorized to take such steps as may be authorized and required by law, and to make such security deposits as may be required by order of 7 court, to permit the Commission to take possession of and use said real property at the earliest possible time. Counsel is further authorized to correct any errors or to make or agree to non- material changes in the legal description of the real property that are deemed necessary for the conduct of the condemnation action, or other proceedings or transactions required to acquire the subject real property. Counsel is further authorized to reduce or modify the extent of the interest or property to be acquired so as to reduce the compensation payable in the action where such change would not substantially impair the construction and operation for the project for which the real property is being acquired. Section 8. Effective Date. This Resolution shall take effect upon adoption. APPROVED AND ADOPTED this 9th day of December, 2015. ___________________________________ Daryl R. Busch, Chair Riverside County Transportation Commission ATTEST: Jennifer Harmon, Clerk of the Board Riverside County Transportation Commission 8   9 Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission ("RCTC"). "Permanent Street Easement" (CPN 23767-1) refers to a permanent non-exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, and maintain the property for public use and right of way. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. 17336.02100\20794699.1 EXHIBIT A, PAGE 1 OF 4 10   11 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 PS OMAS Prepared under the direction of Brian E. Bullock, PLS 5260 6-' 40 -/ Date EXHIBIT A, PAGE 3 OF 4 MA2PTG0105011SURVEIILEGALS\23767 APN 118-183-019U.egals\23767-1-PSE.doc Page 2 of 2 5/4/2015 13 14 NOTICE OF HEARING TO CONSIDER ADOPTION OF A RESOLUTION OF NECESSITY Pursuant to Section 1245.235 of the California Code of Civil Procedure, you are hereby notified that at a regular meeting to be held on Wednesday, December 9, 2015, at 9:30 a.m., at the Riverside County Administration Building, Board of Supervisors Chambers, located at 4080 Lemon Street, Riverside, California, the Commission of the Riverside County Transportation Commission intends to consider adopting a resolution of necessity authorizing the commencement of eminent domain proceedings for interests in real property that, according to the last equalized county assessment roll, is owned by you. The public use for which this resolution of necessity will be considered is for the SR-91 Corridor Improvement Project in Riverside County, California. The definitions of the property rights to be acquired, together with the legal descriptions and corresponding depictions are attached to this notice. A hearing will be held at the time and place mentioned above. You have the right to appear and be heard on the following matters: 1. Whether the public interest and necessity require the project for which the property is sought to be acquired. 2. Whether the project is planned or located in the manner that will be most compatible with the greatest public good and least private injury. 3. Whether the property sought to be acquired by eminent domain and described in the Resolution of Necessity is necessary for the proposed project. 4. Whether the offer required by Section 7267 .2 of the California Government Code has been made. 17336.02100\17601494.1 Pursuant to California Code of Civil Procedure section 1245.235(b)(3), your failure to file a written request with RCTC to appear and be heard within 15 days from the date that this Notice is mailed may result in the waiver of your right to appear and be heard on the above- stated matters and issues that are the subject of the hearing. ALL COMMUNICATIONS SHOULD BE ADDRESSED TO: Jennifer Harmon Clerk of the Board Riverside County Transportation Commission 4080 Lemon Street, 3rd Floor Riverside, California 92501 DATE OF HEARING: PLACE OF HEARING: DATED: October 23, 2015. 17336.02100\17601494.1 Wednesday, December 9, 2015 9:30 a.m. Riverside County Administration Building Board of Supervisors Chambers 4080 Lemon Street Riverside, California 92501 BEST BEST & KRIEGER LLP By:__,___/~~~~~--~aster Gregory G Snarr Attorneys for Riverside County Transportation Commission Legal Definitions of Property to be Acquired The following is a list of definitions of legal rights to be acquired by Riverside County Transportation Commission ("RCTC"). "Permanent Street Easement" (CPN 23767-1) refers to a permanent non-exclusive easement and right of way in favor of RCTC, its successors and assigns, together with the right to construct, reconstruct, repair, extend, and maintain the property for public use and right of way. Property Owner shall not cause, directly, indirectly or negligently, any interference with or harm to the rights conveyed hereunder. EXHIBIT A, PAGE 1 OF 1 17336.02100\20794699.1 2 3 PSOMAS EXHIBIT 'Al' LEGAL DESCRIPTION 4 Caltrans Parcel No. 23767-1 5 Permanent Street Easement 6 APN 118-183-019 7 8 In the City of Corona, County of Riverside, State of California, being a portion of the 9 lands described in the document recorded August 31, 2007 as Document No. 2007- 10 0560751 of Official Records of said County, described as follows: 11 12 Beginning at the southeasterly comer of said lands; thence North 81°52'43 11 West 15.50 13 feet along the southerly line of said lands to a point 15.50 feet westerly of the easterly 14 line; thence North 08°03'59" East 144.00 feet along a line parallel with and 15.50 feet 15 westerly of the easterly line of said lands to a point on the northerly line thereof; thence 16 South 81°52'43 11 East 15.50 feet along said northerly line to the northeasterly comer of 17 said lands; thence South 08°03'59" West 144.00 feet along said easterly line to the Point 18 of Beginning. 19 20 Containing 2,232 square feet. 21 22 See Exhibit 'A2' attached hereto and made a part hereof. 23 24 The distances described herein are grid distances and are based on California Coordinate 25 System of 1983, Zone 6, 2007.00 epoch. Ground distances may be obtained by dividing 26 grid distances by the mean combination factor of the courses being described. The mean 27 combination factor for this conversion is 0.99997476. 28 29 30 31 M:\2PTGOI 0501 \SUR VEY\LEGALS\23767 _APN _118-183-019\Legals\23767-l-PSE.doc 5/412015 EXHIBIT A, PAGE 2 OF 1 Page 1 of2 PSOMAS 2 Prepared under the direction of 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ~~ Brian E. Bullock, PLS 5260 Date M:\2PTGOI 0501 \SURVEY\LEGALS\23767_APN_l18-183-0 J 9\Legals\23767-1-PSE.doc 5/4/2015 EXHIBIT A, PAGE 3 OF 1 Page 2 of2 EXHIBIT A2 PARCEL# TITLE AREA 23767-1 ESMT 2,232 SO.FT. ' 1118-183-0271 44.50' ('~ w ()) l[) n 0 Co 0 z S81"52'43"E 170.00' I 15.50'~ 154.50' -\ IJ 15.50~ N81'52'43"W 170.00' POB C\J 0 I 0 C\J I Cl;) POR. OF LOT I; BLOCK 67 M.8. 9/b SAN BERNARDINO CO. REC. 1118-201-0081 LEGEND POB Indicates Point Of Beginning c==> Title to State 30' I I I l .LL.LL Access Prohibited I 44.50' I NOTES APN 118-183-019 1118-270-0381 44' 30' Coordinates and bearings are on CCS 1983(2007 .00) Zone 6. Distances and stationing are grid distances. Divide by 0.99997476 to obtain ground distances. Al I distances are in feet unless otherwise noted. 23767-1 FEET 0 EXHIBIT A, PAGE 4 OF 1 PERMANENT STREET EASEMENT 25 50 100 150 PREPARED BY: DATE: 03-30-15 REV. 2: 05-04-15 EA: OF540 FA#: PSOMAS 3 Hutton CenTre Drive, Ste. 200 Santa Ana, California 92707 (714 )481-8053/(714 )545-8883 (Fax) DISTRICT COUNTY ROUTE SHEET PM SHEET NO. TOTAL SHEETS 8 RIV 91 5.4 PROOF OF MAILING NOTICE I, Margaret L. Barnes, acting on behalf of the Riverside County Transportation Commission, hereby certify that on October 23, 2015, I mailed a copy of the attached notice by first-class mail to the following owners and other interested parties of real property situated in Riverside County, California, more particularly described as Assessor Parcel No. 118-183-019 CPN 23767-1): Midas Realty Corporation c/o Luis Laboy, Corporate Real Estate Manager TBC Corporation 4300TBCWay Palm Beach Gardens, FL 33410 Midas Realty Corporation 406 South Lincoln A venue Corona, CA 92882 Midas Realty Corporation c/o Scott Donald, Vice President Marvin F. Poer & Co. 18818 Telle Avenue, Suite 277 Irvine, CA 92612 Midas Realty Corporation c/o Paul Miller, Vice President Marvin F. Poer & Co. 3520 Piedmont Road NE, Suite 410 Atlanta, GA 30305 Dated: October _23, 2015. 17336.02100\17601494.l Record Owner Courtesy Copy Courtesy Copy Courtesy Copy Margaret L. Barnes Commission Request 1.The public interest and necessity require the proposed project; 2.The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3.The real property to be acquired is necessary for the project;and 4.The offer of just compensation has been made to the property owner. THE COMMISSION IS REQUESTED TO MAKE THE FOLLOWING FINDINGS PROJECT MAP Parcel Locations in the Project OFFERS OF JUST COMPENSATION No.Ownership Offer Date 1 Midas Realty Corporation August 12, 2015 PARCEL 1 Midas Realty Corporation 118-113-019 Midas Realty Corporation 118-113-019 Midas Realty Corporation 118-113-019 Staff Recommends THE COMMISSION ADOPT A RESOLUTION OF NECESSITY BASED ON THE FOLLOWING FINDINGS 1.The public interest and necessity require the proposed project; 2.The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury; 3.The real property to be acquired is necessary for the project;and 4.The offer of just compensation has been made to the property owner. AGENDA ITEM 8A RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Clerk of the Board THROUGH: Anne Mayer, Executive Director SUBJECT: Proposed 2016 Commission/Committee Meeting Schedule STAFF RECOMMENDATION: This item is for the Commission to adopt its 2016 Commission/Committee Meeting Schedule. BACKGROUND INFORMATION: The Commission is scheduled to meet on the second Wednesday of each month at 9:30 a.m. The Executive Committee is scheduled at 9:00 a.m. on the same day. For 2016, the annual Commission Workshop will be held on Thursday, January 28 and Friday, January 29 at the Hilton Palm Springs. Due to the timing of the annual workshop, the January Budget and Implementation and Western Riverside County Programs and Projects Committees will not be scheduled. The Commission’s policy committees – Budget and Implementation and Western Riverside County Programs and Projects – meet on the fourth Monday of each month at 9:30 a.m. and 1:30 p.m., respectively. For 2016, these Committees will not meet in December due to a holiday. Additionally, the Eastern Riverside County Programs and Projects Committee meets on the first Monday of each month at 10:30 a.m., except when the first Monday falls on a holiday or in the same week as a Commission meeting. There are times when a committee meeting may be cancelled due to lack of substantive agenda items. When this occurs, the Commissioners will be notified and items are forwarded directly to the Commission for final action. Attachment: Proposed 2016 Commission/Committee Meetings Schedule Agenda Item 8A 15    2016 RCTC Meeting Schedule – V1  RIVERSIDE COUNTY TRANSPORTATION COMMISSION 2016 MEETING SCHEDULE Meeting Date (Wednesday) Commission Location Executive Committee Location January 13 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A January 28‐29 Meeting / Workshop 1:00 p.m. (Thursday) 9:00 a.m. (Friday) Hilton Palm Springs 8:30 a.m. Hilton Palm Springs February 10 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A March 9 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A April 13 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A May 11 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A June 8 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A July 13 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A August 10 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A September 14 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A October 12 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A November 9 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A December 14 9:30 a.m. Board Room 9:00 a.m. RCTC Conf Rm A The Commission and the Executive Committee meetings are held on the second Wednesday of each month.  16    2016 RCTC Meeting Schedule – V1  Meeting Date (Monday) Budget and Implementation Committee Western Riverside County Programs and Projects Committee Location February 22 9:30 a.m. 1:30 p.m. Board Room March 28 9:30 a.m. 1:30 p.m. Board Room April 25 9:30 a.m. 1:30 p.m. Board Room May 23 9:30 a.m. 1:30 p.m. Board Room June 27 9:30 a.m. 1:30 p.m. Board Room July 25 9:30 a.m. 1:30 p.m. Board Room August 22 9:30 a.m. 1:30 p.m. Board Room September 26  9:30 a.m. 1:30 p.m. Board Room October 24 9:30 a.m. 1:30 p.m. Board Room November 28 9:30 a.m. 1:30 p.m. Board Room The meetings of the Budget and Implementation Committee and the Western Riverside County Programs and Projects Committee are held on the fourth Monday of each month, except on holidays.  Meeting Date (Monday) Eastern Riverside County Programs and Projects Committee Location January 4 10:30 a.m. CVAG Office 73‐710 Fred Waring Drive Suite 119 Palm Desert, CA 92260 February 1 10:30 a.m. April 4 10:30 a.m. May 2 10:30 a.m. August 1 10:30 a.m. October 3 10:30 a.m. December 5 10:30 a.m. The meetings of the Eastern Riverside County Programs and Projects Committee are held on the first Monday of the month, except when the first Monday falls on a holiday or in the same week as a Commission meeting.  17    2016 RCTC Meeting Schedule – V1   Meeting Date (Monday) Technical Advisory Committee Location January 25 10:00 a.m. Riverside ‐ RCTC Conf Rm A March 21 10:00 a.m. Beaumont ‐ City Hall May 16 10:00 a.m. Riverside ‐ RCTC Conf Rm A July 18 10:00 a.m. Beaumont ‐ City Hall September 19 10:00 a.m. Riverside ‐ RCTC Conf Rm A November 21 10:00 a.m. Beaumont – City Hall The meetings of the Technical Advisory Committee are held on the third Monday of every other month, except for holidays.If the meeting falls on a holiday, the meeting is moved to the second Monday. Riverside – Commission Office, County Administrative Center, 4080 Lemon Street, 3rd Floor, Riverside, CA Beaumont ‐ City Hall, Conference Room 2, 550 East Sixth Street, Beaumont, CA  18 AGENDA ITEM 8B RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer Michele Cisneros, Deputy Director of Finance THROUGH: Anne Mayer, Executive Director SUBJECT: Fiscal Year 2014/15 Commission Audit Results AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to: 1) Receive and file the Fiscal Year 2014/15 a) Comprehensive Annual Financial Report (CAFR); b) Local Transportation Fund (LTF) Financial and Compliance Report; c) State Transit Assistance (STA) Fund Financial and Compliance Report; d) Proposition 1B Rehabilitation and Security Project (Proposition 1B) Accounts Financial and Compliance Report; e) Low Carbon Transit Operations Program (LCTOP) Account Financial and Compliance Report; f) Single Audit Report; g) Commercial Paper Compliance Report; h) Auditor Required Communications Report; i) Agreed-Upon Procedures Report related to the Appropriations Limit Calculation; j) Agreed-Upon Procedures Report related to the Commuter Assistance Program incentives; and k) Management certifications. BACKGROUND INFORMATION: In April 2015, Macias Gini & O’Connell, LLP (MGO) was selected to perform the annual audit of the Commission’s financial statements included in the CAFR, LTF, STA, and federal awards. As the result of the receipt of Proposition 1B and LCTOP funds for commuter rail rehabilitation and security projects, a separate audit is required. Additionally, it was requested to perform agreed-upon procedures related to the annual Appropriations Limit Calculation and the Commuter Assistance Program (CAP) incentives and to report on compliance with commercial paper debt covenants. The audits, compliance procedures, and agreed-upon procedures for the fiscal year ended June 30, 2015, have been completed and MGO has issued all reports. Agenda Item 8B 19 The Commission’s CAFR consists of three sections: introductory, financial, and statistical. While the introductory and statistical sections were not audited by MGO, the basic financial statements included in the financial section were audited by MGO. The Commission received an unmodified opinion on its basic financial statements from MGO, which is the highest form of assurance. Limited procedures were performed related to the required supplementary information, including Management’s Discussion and Analysis section; such information was not audited. The other supplementary information was subject to the auditing procedures applied in the audit of the basic financial statements, and in the opinion of the auditors, it is fairly stated in relation to the basic financial statements. The basic financial statements include government-wide financial statements, fund financial statements, and notes to the financial statements. Management’s Discussion and Analysis section provides a narrative overview and analysis of the Commission’s financial activities for the fiscal year. Financial highlights include net position of approximately $464 million at June 30, 2015, representing a decrease of approximately $85 million from the prior year (as restated), and governmental fund balances of approximately $804 million at June 30, 2015, representing a decrease of approximately $228 million from the prior year. The following information provides a summary of significant matters related to the Commission’s government-wide financial and/or fund financial statements for FY 2014/15: • The Commission implemented Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68, effective July 1, 2014. The implementation of these statements resulted in a restatement of net position of the governmental activities as of July 1, 2014, in the amount of approximately $5.5 million. MGO’s opinion was not modified with respect to this matter. • Project costs that have been incurred for the tolled express lanes projects and are expected to remain the Commission’s assets will be capitalized as intangible assets that will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been accumulated in the capital assets as land and land improvements and construction in progress in the government-wide financial statements. The costs of the tolled express lanes projects that are not capitalized are expensed as incurred based on management’s estimation, which is generally based upon the allocation of Measure A and other funding sources, including toll-supported debt. As of June 30, 2015, the estimated project costs incurred and not capitalized related to the State Route 91 Project (91 Project) is approximately 88 percent of right of way and 60 percent of engineering and construction costs, or approximately $113.9 million and $293.1 million, respectively. All costs related to the Interstate 15 Express Lanes project are considered capitalizable. Agenda Item 8B 20 • During FY 2014/15, the Commission made a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan draw of approximately $48.9 million related to the 91 Project. The TIFIA loan agreement that was executed in July 2013, is for an amount up to approximately $421.1 million. The audit reports related to the separately issued financial statements of the LTF, STA, Proposition 1B, and LCTOP also reflect unmodified opinions from MGO. These financial statements are required to be issued separately under the Transportation Development Act (TDA), including the provisions for Proposition 1B and LCTOP; however, the LTF and STA financial position and operations are included in the fund financial statements in the CAFR. The Proposition 1B and LCTOP financial position are part of the General and Measure A Western County Commuter Rail funds. These reports noted no matters considered to be a material weakness in internal control and no instances of noncompliance. The 2015 Single Audit Report includes the reports on compliance and internal control over financial reporting and over federal awards. These reports noted no matters considered to be a material weakness in internal control and no instances of noncompliance. As a result of the establishment of the commercial paper program in March 2005, the bank reimbursement agreement requires a report from the auditor regarding compliance with certain covenants. The report issued by MGO indicated that nothing came to the auditor’s attention that caused the auditors to believe the Commission failed to comply with these covenants. A management letter usually includes recommendations for improvements and operational efficiencies related to internal control and other matters noted during the audit. MGO did not have any recommendations or comments on other matters; therefore, it did not issue a management letter. The Appropriations Limit Calculation and CAP reports are based on specific procedures agreed to by the Commission. For the Appropriations Limit Calculation and CAP, the auditors noted no exceptions or findings related to the procedures performed. As required by American Institute of Certified Public Accountants Auditing Standards Board Statement No. 114, The Auditor’s Communication With Those Charged With Governance, the Commission’s auditor is required to make certain annual communications to the Commission’s Audit Ad Hoc Committee, or its equivalent, regarding the audit of the Commission’s financial statements following the completion of the audit. The annual audit for FY 2014/15 conducted by MGO was completed in October 2015. The report to the Audit Ad Hoc Committee from the auditor contains the required communications about the audit. As part of the development of the Commission’s Accountability Program, the directors have completed certifications relating to financial reporting and operational disclosures. Agenda Item 8B 21 Attachments: Posted on Commission Website 1)2015 Comprehensive Annual Financial Report 2)2015 Local Transportation Fund Financial and Compliance Report 3)2015 State Transit Assistance Fund Financial and Compliance Report 4)2015 Proposition 1B Rehabilitation and Security Projects Accounts Financial and Compliance Report 5)2015 Low Carbon Transit Operations Program Account Financial and Compliance Report 6) 2015 Single Audit Report 7)2015 Commercial Paper Compliance Report 8)2015 Report to the Audit Ad Hoc Committee 9)2015 Agreed-Upon Procedures Report on Appropriations Limit Calculations 10)2015 Agreed-Upon Procedures Report on Commuter Assistance Program Incentives 11)2015 Executive Director and Chief Financial Officer Certification 12)2015 Director’s Certification Agenda Item 8B 22 ATTACHMENT 1 Riverside County Transportation Commission Riverside County, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Submitted By: Theresia Trevino, Chief Financial Officer Michele Cisneros, Deputy Director of Finance Contents Introductory Section Letter of Transmittal Organization Chart x List of Principal Officials and Management Staff xi Certificate of Achievement xii Financial Section Independent Auditor's Report 1 Management's Discussion and Analysis 3 Basic Financial Statements Government -wide Financial Statements Statement of Net Position 16 Statement of Activities 17 Fund Financial Statements Balance Sheet —Governmental Funds 18 Reconciliation of the Balance Sheet of Govemmental Funds to the Statement of Net Position 19 Statement of Revenues, Expenditures and Changes in Fund Balances —Governmental Funds 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 21 Notes to Financial Statements 22 Required Supplementary Information Budgetary Comparison Schedules General Fund 55 Major Special Revenue Funds 56 Schedule of Funding Progress for Postretirement Health Care 57 Schedule of Proportionate Share of Net Pension Liability 58 Schedule of Contributions 59 Notes to Required Supplementary Information 60 Other Supplementary Information Nonmajor Governmental Funds 63 Combining Balance Sheet 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 Schedule of Revenues, Expenditures and Changes in Fund Balances —Budget and Actual: Nonmajor Special Revenue Funds 66 Capital Projects and Debt Service Funds 68 Schedule of Expenditures for Local Streets and Roads by Geographic Area —All Special Revenue Funds 69 Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source —All Special Revenue Funds 70 Contents, Continued Statistical Section Statistical Section Overview 71 Net Position by Component 73 Changes in Net Position 74 Fund Balances of Govemmental Funds 76 Changes in Fund Balances of Governmental Funds 77 Sources of County of Riverside Taxable Sales by Business Type 78 Direct and Overlapping Sales Tax Rates 79 Principal Taxable Sales Generation by City 80 Measure A Sales Tax Revenues by Program and Geographic Area 81 Measure A Sales Tax by Economic Category 82 Measure A Revenues and Pledged Revenue Coverage 83 Ratios of Outstanding Debt by Type 84 Computation of Legal Debt Margin 85 Demographic and Economic Statistics for the County of Riverside 86 Employment Statistics by Industry for the County of Riverside 87 Full-time Equivalent Employees by Function/Program 88 Operating Indicators 89 Capital Asset Statistics by Program 90 Introductory Section October 30, 2015 To the Riverside County Transportation Commission Commissioners and Citizens of the County of Riverside: Letter of Transmittal State law requires that the Riverside County Transportation Commission (Commission or RCTC) publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States (GAAP) and audited in accordance with generally accepted auditing standards by independent certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the Commission for the fiscal year ended June 30, 2015. Management assumes full responsibility for the completeness and reliability of all of the information presented in this report, based upon the Commission's comprehensive framework of internal controls established for this purpose. Because the cost of intemal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Macias Gini & O'Connell LLP has issued an unmodified opinion on the Commission's financial statements for the year ended June 30, 2015. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of RCTC's Governance and Responsibilities The Commission was established by state law in 1977 to oversee the funding and coordination of all public transportation services within the county of Riverside (County). The Commission's mission is to assume a leadership role in improving mobility in Riverside County and to maximize the cost effectiveness of transportation dollars in the County. The governing body is the Board of Commissioners (Board), which consists of all five members of the County Board of Supervisors, one elected official from each of the County's 28 cities, and one non -voting member appointed by the Governor. The Commission is responsible for setting policies, establishing priorities, and coordinating activities among the County's various transportation operators and agencies. The Commission also programs and/or reviews the allocation of federal, state, and local funds for highway, transit, rail, non -motorized travel (bicycle and pedestrian), and other transportation activities. MOAENO VALLEY osw. EOM IAKE WI UMW MOW CALM UAW MING AMOtRIETA u � 0" MINN WELLS IAOM INDb COAOrsLA The Commission also serves as the tax authority and implementation agency for the voter -approved Measure A Transportation Improvement Program, which imposes a half -cent sales tax to fund transportation improvements. Originally approved in 1988 (1989 Measure A), Riverside County's voters in 2002 approved a 30-year extension of Measure A commencing July 1, 2009 through June 30, 2039 (2009 Measure A). The Commission is also legally responsible for allocating Transportation Development Act (TDA) funds, the major source of funds for transit in the County. The TDA provides two major sources of funding: Local Transportation Fund (LTF), which is derived from a one -quarter cent state sales tax, and State Transit Assistance, which is derived from the statewide sales tax on gasoline and diesel fuel. Additionally, the Commission provides motorist aid services designed to expedite traffic flow. These services include the Service Authority for Freeway Emergencies (SAFE), a program that provides call box service for motorists, and the Freeway Service Patrol (FSP), a roving tow truck service to assist motorists with disabled vehicles on the main highways of the County during peak rush hour traffic periods. The motorist aid program also includes the operation of the Inland Empire 511 (IE511) system which provides comprehensive real time traveler information for freeways, bus and rail transit, and rideshare services. All services are provided at no charge to motorists and are funded through a $1 surcharge on vehicle registrations. The Commission is financially accountable for SAFE, a legally separate entity that is blended within the Commission's financial statements. Finally, the Commission has been designated as the Congestion Management Agency (CMA) for the County. As the CMA, the Commission coordinates with local jurisdictions in the establishment of congestion mitigation procedures for the County's roadway system. The Commission is required to adopt a budget prior to the beginning of each fiscal year. The annual budget, which includes all funds, serves as the foundation for the Commission's financial planning and control regarding staffing, operations, and capital plans. The budget is prepared by fund (financial responsibility unit), department, and function. Management has the discretion to transfer budgeted amounts within the financial responsibility unit according to function. During the fiscal year, all budget amendments requiring Board approval are presented to the Board for consideration and adoption. Local Economy Riverside County has specific competitive advantages over nearby coastal counties (Los Angeles, Orange, and San Diego) including housing that was (and remains) more available and affordable and plentiful commercial real estate and land available for development at lower costs. Riverside County's economy has thrived, reflecting the area's competitive advantages over its neighboring counties, largely as a result of the County's continuing ability to draw jobs, residents, and affordable housing away from the Los Angeles, Orange, and San Diego county areas. As a result, the County's employment and commercial base is diversified, and the County's share of the regional economy has increased. Riverside County's local economy is experiencing significant improvement since the nationwide recession, which impact was amplified in the Inland Empire (i.e., San Bernardino and Riverside counties). Sales tax revenues have rebounded from the economic downtum's low point in 2010, with Measure A revenues growing 4.5% and LTF revenues increasing 4.9% in FY 2014/15. Transportation Uniform Mitigation Fee (TUMF) revenues increased 56.6%, reflecting residential and commercial development activity in the County. The Commission's outlook for FY 2015/16 continues to be cautiously optimistic; however, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. Ongoing problems with funding of the Federal Highway Trust Fund could cause delays in receipt of federal funding. Another recent funding hurdle facing transit operators in Califomia involved Section 13 C of the Federal Transit Act. Section 13 C requires certification of federal transit grant funding by the Department of Labor to ensure that federal labor laws are being followed. Some transit unions have claimed that collective bargaining rights were undermined in Califomia by legislative approval of a number of pension reforms. The State of California challenged the action in court and prevailed, and the ruling has now been appealed by the Department of Labor. Until this legal matter is resolved, the Commission has acted to advance transit reserves to both RTA and SunLine to ensure ongoing operations and continued progress on planned capital projects. Regardless of the future economic conditions, the Commission faces formidable ongoing challenges in terms of providing needed infrastructure enhancements to support a population and an economy that has outgrown the capacity of its existing infrastructure. Fortunately, the foundation of the regional economy continues to retain many of the fundamental positive attributes that fueled its earlier growth, including lower priced real estate with proximity to coastal communities, a large pool of skilled workers, and increasing wealth and education levels. Long-term Financial Planning Proactive financial planning is a critical element for the success of the Commission as it builds for the future. Continually reviewing revenues and projecting expenditures ensures that the Commission's expectations are realistic and goals are achievable. Scarce resources, especially at the state and federal level, can be directed to projects of regional significance or, with additional funding, project priorities can be expanded to address unfunded project requirements or developing needs. At the state level, transportation funding has stabilized but there is significant debate regarding future priorities. Governor Brown's transportation secretary is in the midst of an effort to reform the Califomia Department of Transportation (Caltrans) and has clearly stated a preference for a "Fix it First" orientation that stresses ongoing maintenance over capacity enhancement. In addition to a focus on maintenance, the State has made active transportation projects such as bicycle and pedestrian facilities a priority. Sustainability is now the key word of the day and will likely impact the direction of state funding for many years into the future, and California's Cap and Trade program (which is also uncertain) could prove to be a promising source of funding for transit services. The news on the federal level is somewhat less predictable. The comprehensive transportation bill known as Moving Ahead for Progress in the 21st Century (MAP-21) expired in June 2014, and has been extended twice. One important provision of MAP-21 expands the Transportation Infrastructure Finance and Innovation Act (TIFIA). The Commission is utilizing TIFIA funding for its current project on State Route (SR) 91 in Corona and could seek additional financing from the program for other projects in the future. iii In the meantime, the federal govemment will continue to be a source of highway funding through the Surface Transportation Program and the Congestion Mitigation Air Quality program since MAP-21 continues these programs at roughly the same funding level. Federal dollars are also needed by the Commission's transit partners for capital programs, and the Commission is utilizing $75 million in Federal Transit Administration (FTA) Small Starts funding to pay for its Metrolink expansion project to Perris, the Perris Valley Line. Measure A Western Riverside County Western County Delivery Plan — A Big Part of a Larger Effort The widening of SR-91 and a number of other major freeway corridors comprise a multi -year Western Riverside County (Western County) Delivery Plan (Delivery Plan) that focuses on investing more than $2 billion in improvements during the first ten years of the 2009 Measure A program. The Delivery Plan was adopted by the Commission in December 2006 and was updated in January 2010 and February 2012. In order to make the needed investments, the plan relies on Measure A, State Transportation Improvement Program (STIP), and Proposition 1 B dollars as well as the development of tolled express lanes on Interstate (I) 15 and the extension of the 91 Express Lanes into Riverside County. While the Delivery Plan is ambitious, it is only one portion of a much larger program of projects and services the Commission will provide throughout the County. Additional responsibilities and challenges include working cooperatively with the Coachella Valley Association of Governments (CVAG) to fund projects, continued oversight and funding of transit services throughout the County, and a 24-miie expansion of Metrolink service to Perris. The success of all of these efforts will require a combination of funding sources that will depend on the State's commitment to funding infrastructure and major investments from the federal govemment via the approval of a federal transportation bill. However, the primary —and most predictable —source of funding for the Commission will continue to be the Measure A half -cent sales tax program approved by Riverside County voters. Capital Project Delivery and Implementation- Completing a Promise The Capital Project Development and Delivery Department is responsible for major highway and rail capital projects from initial environmental study through preliminary engineering, final design, right of way acquisition, and construction. The Commission is currently in the midst of an unprecedented era of transportation investment. The results can be seen throughout Riverside County with numerous projects under construction, successful transit service, and promises of more on the way in the near future. There are also a number of notable projects which have been completed in the past year which can be seen as tangible examples of the Commission completing promises that were made to voters who approved Measure A. The Commission has developed a track record of success which is taking shape throughout the County as evidenced in the following project types. Highways. The Commission is currently working on its last project from the 1989 Measure A program which is the widening of SR-91 through Downtown Riverside. The SR-91 high occupancy vehicle lane project construction in Riverside from Adams Street to the 60/91/215 interchange was approved for Proposition 1B Corridor Mobility Improvement Account (CMIA) funding. The Commission and Caltrans District 8 partnered on the design and right of way activities, and construction began in spring 2012 with the new lanes expected to be open to traffic by the end of 2015. Another 1989 Measure A that was recently completed was the SR-74 curve widening. Construction for the SR-74 curve widening near Hemet began in early 2014 and was completed in Spring 2015. Yet another project to be completed was the widening of 1-215 from Scott Road to Nuevo Road. The project adds another general purpose lane to the freeway resulting in three continuous lanes from the 1-15 interchange to the SR-60 interchange. Construction started in early 2013 and was completed in October 2015. The project was funded by STIP and CMIA. The combination of this freeway widening, along with the late 2015 opening of the Perris Valley Line Metrolink extension will result in better mobility along this north/south corridor. iv In February 2012 the Commission amended the Delivery Plan to include a truck climbing lanes safety project on SR-60 in the Badlands area in place of a similar nearby project on 1-10. In partnership with Caltrans, the Commission is the project sponsor and Caltrans is the lead agency for preliminary engineering using federal funds. With a total project cost estimated at $122 million, construction of the project is expected to be completed by 2018. Commuter Rail: New rail service is set to being in late 2015 on the Perris Valley Line. The new service adds 24 miles of commuter rail service in Riverside County with stops in Riverside/Hunter Park (UCR), Moreno Valley/March Field, Downtown Perris and South Perris. The new line is expected to serve more than 4,200 riders per day. Since 1993 the Commission has held title to and managed the 38-mile San Jacinto Branch Line and several adjacent properties in anticipation of offering Metrolink commuter rail service to a wider area of the County, initially including Moreno Valley and Perris and ultimately to Hemet/San Jacinto. The completion of the Perris Valley Line project will complete yet another promise made to voters in Measure A and will provide Riverside County with a foundation for better transit service involving a combination of commuter rail, local buses and active transportation improvements. The overall cost of the project is $248 million and uses a combination of federal Small Starts Grant funding, Measure A and STIP dollars. Toll Program Moves Forward 91 Project — An Immense Investment Taking Shape: The SR-91 Corridor Improvement Project (91 Project) through Corona has been in construction since early 2014. Prior to the beginning of construction, the Commission obtained all necessary environmental approvals; executed a number of agreements with Caltrans, the Orange County Transportation Authority (OCTA), and a toll operator; approved and entered into a $632 million design -build contract; and successfully financed the $1.4 billion project. The highlight of the financing plan included the approval of a $421 million TIFIA loan through the U.S. Department of Transportation. The 91 Project's plan of finance was developed by a financial team for the issuance of $176.7 million in toll revenue bonds and $462.2 million in sales tax revenue bonds. Construction on the project is expected to be completed in 2017, and more than half of the overall construction project has been completed. All of the necessary right of way parcels have been acquired for construction, and work continues on a wide variety of bridges, connectors and other improvements. The 91 Project includes two tolled express lanes in each direction in the median of SR-91. The extension of these lanes will provide a seamless connection to the OCTA 91 Express Lanes; expand the choices for Riverside County drivers; improve congestion on the general purpose lanes; and ensure a speedy, uncongested trip for drivers willing to pay a toll. The 91 Project also includes numerous non -toll lane improvements including an additional general purpose lane in each direction on SR-91 and substantive interchange improvements. 1-15 — The Next Project: The 1-15 Corridor Improvement Project (1-15 Express Lanes) is planned to include two tolled express lanes in each direction in the median of 1-15. The first phase of these lanes will extend from the south near Cajalco Road to the north at SR-60. The express lanes will have the same benefits mentioned previously for the 91 Project. The 1-15 Express Lanes environmental studies and preliminary engineering work continue to progress and are scheduled for completion in Spring 2016, with construction expected to commence in 2018 after the completion of the 91 Project in 2017. TUMF Plays an Important Role In the Coachella Valley, a TUMF program was established shortly after the passage of the 1989 Measure A. The program requires developers to pay a fee on new development to fund arterial improvements. Cities are required to participate in the program or forfeit Measure A local dollars to CVAG, which oversees the arterial program and has been successful in funding a number of important arterial and freeway interchange projects. v With the passage of the 2009 Measure A, a TUMF program with participation requirements similar to that in the Coachella Valley is in place in Western County and administered by the Western Riverside Council of Governments. TUMF funds received by the Commission are split evenly between new corridors, including the Mid County Parkway, and regional arterials, including local projects and the SR-79 realignment project. To date, nine projects have been completed, seven projects are under construction, and three projects are in preliminary engineering. Regional Projects Receive Significant Funding In 2014, the Commission awarded more than $152 million to local jurisdictions for a wide variety of street improvements, expanded freeway interchanges, and active transportation improvements for bicyclists and pedestrians. A number of funding sources were combined to fund as many projects as possible, and the effort utilizes Measure A and two federal funding sources. A total of 33 projects will receive funding during the next two years and 18 local jurisdictions including local cities, the County, and the Riverside Transit Agency (RTA) will move forward with the various projects. Among the higher profile projects are the widening of Clinton Keith Avenue in Murrieta, the construction of a truck climbing lane in the Banning Pass on SR-60, widening Magnolia Street in the city of Riverside, widening Highway 111 in Indio, and constructing a new freeway interchange at I- 215/Newport Road in Menifee. Additionally a number of active transportation projects received funding including the Santa Ana River Trail, the CV link project in the Coachella Valley, and a Bike Share Program in the city of Riverside. Rail Development, Operations and Support As one of five funding partners in the Southem California Regional Rail Authority, which operates the Metrolink commuter rail service, the Commission is engaged in a continual exercise of consensus building with its partners to provide effective regional service. Now consisting of seven lines serving six counties, the system carves an average of 42,700 passengers each weekday. The Commission owns and operates five stations served by the three Metrolink lines operating through the County and will add four more once the Perris Valley Line begins carrying passengers in late 2015: ➢ Riverside Line: Originates in the Downtown Riverside station and stops at the Pedley station before proceeding through Ontario, Pomona, Industry, and Montebello to Los Angeles Union Station. Ridership approximates 5,000 daily riders. ➢ Inland Empire Orange County (IEOC) Line: Begins in nearby San Bernardino with stops at the Downtown Riverside, La Sierra, North Main Corona, and West Corona stations before entering Orange County with stops in Anaheim Canyon, Orange, Santa Ana, Tustin, Irvine, Laguna Niguel/Mission Viejo, San Juan Capistrano, San Clemente and Oceanside. When initiated, this service was described as the first suburb -to -suburb commuter rail service in the nation. Ridership on the IEOC line remained steady in the past year with an average daily ridership of 4,700. This line also provides weekend service. ➢ 91 Line: Provides service from Riverside to Los Angeles with stops in La Sierra, North Main Corona, West Corona, Fullerton, Buena Park, Norwalk and Commerce before terminating at Union Station. Daily patronage on the line averages 2,500. The Perris Valley Line project will extend this line to Perris in 2015 with stops at Riverside Hunter Park (UCR), Moreno Valley/March Field, Downtown Perris and South Perris. The Commission also owns the Perris Transit Center, a multimodal facility currently serving RTA bus operations and providing park and ride spaces. This facility is being expanded in Downtown Perris to become one of the new Perris Valley Line commuter rail stations while continuing to serve as an important regional bus terminal. Commuter Services Acting in its capacity as the regional transportation planning agency (RTPA) and the SAFE for Riverside County, the Commission provides a variety of commuter services to increase mobility, safety, and air quality throughout the region. As the RTPA, the Commission applies Measure A funds to administer the Commuter Assistance Program (CAP) to ease congestion, maximize the efficiency of its transportation investments and reduce emissions from single occupant vehicle trips with the vi following programs and services: Commuter/Employer Rideshare Services: IE Commuter, the flagship of the CAP, helps commuters discover their best commute. In just a few clicks, www.iecommuter.orq users can access all of their time and money saving transportation options (carpool partners, bus, and rail) and incentives available to them. Additionally, through IE Commuter, the Commission partners heavily with local employers to implement and maintain rideshare activities at work sites throughout Riverside and San Bemardino counties. IE Commuter continues to leverage technology to cost effectively increase awareness, consideration, and use of alternative modes to improve mobility and air quality throughout the region. Rideshare Incentives: The most prominent commuter incentive continues to be the Rideshare Incentives, a short-term incentive that offers $2 per day for each day new ridesharers use an altemate mode of transportation in a three-month period. Long-term ridesharers are recognized and rewarded for their continuing commitment to use alternate modes of transportation to and from work with access to discounts at over 135,000 local and national merchants through Rideshare Plus. Park and Rides: Working in partnership with Caltrans, the Commission leases excess parking from business and civic institutional partners to facilitate ridesharing and expand the systems park and ride capacity. There are approximately 2,700 park and ride spaces available in Riverside County. As the SAFE, the Commission also administers the Motorist Assistance Program to provide the following services designed to promote mobility and safety for motorist traveling through Riverside County: Freeway Service Patrol: The FSP program is a special team of 21 tow trucks roving along portions of SR-60, SR-91, 1-15, and 1-215 within the County during peak, weekday commuter hours to assist drivers when their vehicles break down or experience other mechanical problems. The purpose of the FSP is to clear debris and remove disabled vehicles from the freeway as quickly as possible to help keep freeway traffic moving during rush hour periods. Another effort augments existing FSP service with additional tow trucks in construction areas as another means of construction -related congestion mitigation. The FSP is funded by the Riverside County SAFE and the State. During FY 2014/15, the FSP provided 42,471 assists. Call Boxes: In cooperation with the California Highway Patrol and Caltrans, the Commission assists motorists who experience accidents, mechanical breakdowns, or other unforeseen problems by providing access to cellular call boxes with enhanced reception along the County's major highways. The Commission's system includes approximately 550 call boxes serving more than 346 centerline miles of highways and is funded by an annual $1 surcharge added to vehicle registrations. Moving forward, the right -sizing of this program will be a focus given the proliferation of cell phone usage. Call box operators answered approximately 3,900 calls during FY 2014/15. Traveler Information: To further promote mobility, the Commission in partnership with the San Bernardino Associated Governments (SANBAG), provides motorists with access to real-time freeway travel information and incident information on Southem California highways through its 1E511 Traveler Information system. 1E511 is designed to promote mobility by fostering more informed travel decisions to avoid congestion and is available via the telephone by dialing 511 from any landline or cell phone within Riverside or San Bemardino County, online at www.ie511.orq, or the 1E511 mobile app. To date, the 1E511 mobile app has been downloaded by over 32,000 users. 1E511 is funded with Riverside County SAFE funds in addition to SANBAG reimbursements. In FY 2014/15, IE511 serviced approximately 450,000 web visits and 264,000 phone calls. Specialized Transit The Commission has maintained a long-term commitment to assist in the mobility of those with specialized transit needs. Through its Specialized Transit Program, the Commission has provided millions of dollars to public and nonprofit transit operators to assist in the provision of special transit services to improve the mobility of seniors, persons with disabilities and persons with low incomes. Along with support of traditional dial -a -ride services, the Commission supports innovative programs providing transit assistance in hard -to -serve rural areas or for riders having very special transit needs. Following the Commission's approval and adoption of the Public Transit —Human Services Coordinated Plan for Riverside vii County in 2008, the Commission identified additional qualified populations as well as underserved areas of Riverside County in need of transit services. The 2015 Universal Call for Projects for Specialized Transit (Universal Call) provided funding awards in Western County to 17 public and nonprofit agencies using Measure A funding over a three-year period. The 2015 Universal Call included $8 million in Measure A funds committed locally by the Commission for FY 2015/16 through FY 2017/18. During FY 2014/15, public and nonprofit operators provided approximately 522,000 Measure A and/or federally funded one-way trips in both Westem County and Coachella Valley. Planning for the Future — Environmental Document Approved for Mid County Parkway In terms of future progress, the Commission gave its unanimous support to the Riverside County Integrated Project (RCIP) and its transportation component, the Community and Environmental Transportation Acceptability Process (CETAP). The RCIP was a model for streamlining the environmental process while providing for the long-term development and economic growth of the County. The County and the Commission worked together in a first -of -its kind endeavor to provide for new transportation options and land use planning to support the economic growth of the County while providing for preservation of open space and protection for endangered species. CETAP addresses the impact of future population and economic growth on the existing transportation system by identifying and establishing new transportation corridors and arterial system improvements. The entire CETAP program was recognized under President Bush's Executive Order for Environmental Streamlining and Stewardship. The Commission's CETAP effort focuses on four new transportation corridors: two located within the County and two that would link Riverside County with the neighboring counties of Orange and San Bemardino. Each of the corridors is progressing on differing schedules with the aforementioned improvements on the 1-215 among the first to be completed. In April 2015, the Commission approved the Environmental Impact Report (EIR) and Environmental Impact Statement (EIS) for the Mid County Parkway (MCP). The MCP will add a new 16-mile east -west corridor between San Jacinto and Perris, providing another altemative to many well -traveled arterials. The Commission's approval and adoption of the EIR has been legally challenged and settlement talks are underway. Another large planning effort affecting the Hemet and San Jacinto communities is the realignment of SR-79. This 2009 Measure A project is undergoing early project development, which was partially funded through the TUMF program and federal earmarks. An environmental document is being prepared in cooperation with local, state, and federal agencies to allow the realignment of SR-79 between Domenigoni Parkway, south of SR-74, and Gilman Springs Road, north of San Jacinto. In response to a number of comments, the Commission issued a re -circulated Draft EIR/EIS which included a public hearing in September 2015. This will be incorporated into a Final EIR/EIS. The project would realign the highway to provide a more direct route within the San Jacinto Valley. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Commission for its CAFR for the fiscal year ended June 30, 2014. This was the 22nd straight year the Commission has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The CAFR each year is a collaborative effort by Commission staff and its independent auditors. The undersigned are grateful to all staff for their willingness to expend the effort necessary to ensure the financial information contained herein is informative and completed within established deadlines. Special thanks must be extended to the Finance staff, program management and staff, and Commission's auditors for the time, effort, and commitment so vital for the final completion of the CAFR. viii In closing, without the leadership and the support of the Board, preparation of this report would not have been possible. Its prudent management must be credited for the strength of the Commission's fiscal condition, and its vision ensures that the Riverside County Transportation Commission will be on the move planning for and building a better future for Riverside County residents and commuters. Very truly yours, 164z :f.edyf- • ,./Aew ANNE MAYER Executive Director THERESIA TREVINO Chief Financial Officer ix Senior Administrative Assistant Office & eoard Services Manager Administrative Assistant (3) Chief Financial Officer Procurement Manager Procurement Analyst Finance Manager' Controller L E Accounting Supervisor Riverside County Transportation Commission Organization Chart Fiscal Year 2014/15 LegalCaunsel Haman Resources Administrator Senior Office Assistant Accounting Technician (2) Accounting Assistant (2) Roma of Commissioners Executive Director Deputy Executive Director Goods Movement, Manager Government Relations Manager: Community RelatlePS Manager Multimoda, Services Director Planning & Programming Director Rail Manager Planning &Programming Manager Staff Analyst Transit Manager Staff Analyst Commuter & Motorist Assisiance Manager Staff Ana ryst Senior Staf€Analyst Staff Analyst Project Delivery tlirectOr Capnai Projects Manager IS) Right of W ay Manager Senior Staff Analyst (2) Staff Analyst Facilities Adrninlstratnr Toll Program Director Toll Project Manager 12) x Name Kevin Jeffries John F. Tavaglione Chuck Washington John J. Benoit Marion Ashley Deborah Franklin Brenda Knight Joseph DeConinck Ella Zanowic Dawn Haggerty Greg Pettis Steven Hernandez Karen Spiegel Scott Matas Adam Rush Linda Krupa Dana Reed Troy Strange Frank Johnston Robert Radi Bob Magee Scott Mann Jesse Molina Rick Gibbs Berwin Hanna Jan Harnik Ginny Foat Daryl Busch Ted Weill Steve Adams Andrew Kotyuk Michael Naggar Ben Benoit John Bulinski Riverside County Transportation Commission List of Principal Officials As of June 30, 2015 Board of Commissioners Title Member 2nd Vice Chair (Commission) Member Member Member Vice Chair (Western Riverside County Programs and Projects Committee) Member Member Member Member Member Member Member Vice Chair (Commission) and Vice Chair (Eastern Riverside County Programs and Projects Committee) Member Member Member Member Member Member Chair (Budget and Implementation Committee) Member Member Member Member Vice Chair (Budget and Implementation Committee) Member Chair (Commission) Member Member Member Member Chair (Western Riverside County Programs and Projects Committee) Interim Governor's Appointee Management Staff Anne Mayer, Executive Director John Standiford, Deputy Executive Director Michael Blomquist, Toll Programs Director Marlin Feenstra, Project Delivery Director Shirley Medina, Planning and Programming Director Theresia Trevino, Chief Financial Officer Robert Yates, Multimodal Services Director Agency County of Riverside, District 1 County of Riverside, District 2 County of Riverside, District 3 County of Riverside, District 4 County of Riverside, District 5 City of Banning City of Beaumont City of Blythe City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Corona City of Desert Hot Springs City of Eastvale City of Hemet City of Indian Wells City of Indio City of Jurupa Valley City of La Quinta City of Lake Elsinore City of Menifee City of Moreno Valley City of Murrieta City of Norco City of Palm Desert City of Palm Springs City of Perris City of Rancho Mirage City of Riverside City of San Jacinto City of Temecula City of Wildomar Ca[trans, District 8 XI G� Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Riverside County Transportation Commission California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 *fp-46*o Executive Director/CEO Financial Section www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 Independent Auditor’s Report Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Commission, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 7 to the basic financial statements, the Commission implemented Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68, effective July 1, 2014. The implementation of these Statements resulted in a restatement of net position of the governmental activities opinion unit as of July 1, 2014, in the amount of $5,475,607. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparisons and information related to the pension and other postemployment benefit plans, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by GASB, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Commission’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and schedules of expenditures, as listed in the table of contents as supplementary information, and the other information, such as the introductory and statistical sections, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules and schedules of expenditures are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison schedules and schedules of expenditures are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Newport Beach, California October 30, 2015 Riverside County Transportation Commission Management's Discussion and Analysis Year Ended June 30, 2015 As management of the Riverside County Transportation Commission (Commission), we offer readers of the Commission's financial statements this narrative overview and analysis of the Commission's financial activities for the fiscal year ended June 30, 2015. We encourage readers to consider the information on financial performance presented here in conjunction with the transmittal letter on pages i-ix and the Commission's financial statements which begin on page 16. Financial Highlights • Total net position of the Commission was $463,544,547 and consisted of net investment in capital assets of $509,106,481; restricted net position of $578,207,942; and unrestricted net position (deficit) of ($623,769,876). • The unrestricted net position (deficit) results primarily from the recording of the debt issued for Measure A highway, local street and road, and regional arterial projects. As title to substantially most of those assets vests with the State of California (State) Department of Transportation (Caltrans) or local jurisdictions, there is no asset corresponding to the liability. Accordingly, the Commission does not have sufficient current resources on hand to cover current and long- term liabilities; however, future Measure A sales taxes are pledged to cover Measure A debt service payments when made. • Net position decreased by $84,834,219 during fiscal 2015. General revenues consisting primarily of sales taxes are the major funding source for the govemmental activities. The decrease in net position was lower than the prior year primarily as a result of an estimate for the portion of the State Route 91 (SR-91) corridor improvement project (91 Project) costs that are not capitalizable and not related to the tolled express lanes. • Total capital assets, net of accumulated depreciation, were $709,582,493 at June 30, 2015, representing an increase of $182,111,142, or 35%, from June 30, 2014. The increase in capital assets was primarily related to the land acquisition and construction in progress costs related to the Perris Valley Line extension project and 91 Project. • The Commission's governmental funds reported combined ending fund balances of $803,802,444, a decrease of $227,673,977 compared to fiscal 2014 primarily due to the use of debt proceeds related to the 91 Project. Approximately 75% of the governmental fund balances represent amounts available for the Measure A program, including debt service and funding from the issuance of debt, and the TUMF program. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Commission's basic financial statements, which are comprised of three components consisting of govemment-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. Government -wide Financial Statements The govemment-wide financial statements are designed to provide readers with a broad overview of the Commission's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the Commission's assets, liabilities, and deferred outflows/inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Commission is improving or deteriorating. 3 The statement of activities presents information showing how the Commission's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods. The govemment-wide financial statements report the functions of the Commission that are principally supported by sales taxes and intergovemmental revenues, or govemmental activities. The governmental activities of the Commission include general government, the Measure A program, Community and Environmental Transportation Acceptability Process (CETAP), commuter assistance, regional arterials, commuter rail, transit and specialized transportation services, planning and programming, bicycle and pedestrian facilities projects, and motorist assistance services. Measure A program services are divided within the three regions of Riverside County (County), namely Westem County, Coachella Valley, and Palo Verde Valley. The govemment-wide financial statements include only the Commission and its blended component unit. The govemment-wide financial statements can be found on pages 16-17 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance -related legal requirements. All of the Commission's funds are govemmental funds. Governmental funds are used to account for essentially the same functions reported as govemmental activities in the govemment-wide financial statements; however, govemmental fund financial statements focus on near -term inflows and outflows of spendable resources and on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a govemment's near -term financing requirements. Since the focus of govemmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for govemmental activities in the government -wide financial statements. As a result, readers may better understand the long-term impact of the govemment's near -term financing decisions. Both the govemmental fund balance sheet and related statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between govemmental funds and govemmental activities. The Commission maintains 14 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the related statement of revenues, expenditures and changes in fund balances for the Commission's major governmental funds comprised of the General fund; Measure A Westem County, Measure A Coachella Valley, Transportation Uniform Mitigation Fee (TUMF), and Local Transportation Fund (LTF) Special Revenue funds; Commercial Paper and Bonds Capital Projects funds; and Debt Service fund. Data from the other six govemmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the other supplementary information section. The Commission adopts an annual appropriated budget for the General fund, all Special Revenue funds, all Capital Projects funds, and the Debt Service fund. Budgetary comparison schedules have been provided for the General fund and major Special Revenue funds as required supplementary information and for the nonmajor Special Revenue funds and the Capital Projects and Debt Service funds as other supplementary information to demonstrate compliance with these budgets. The govemmental fund financial statements, including the reconciliation between the fund financial statements and the government -wide financial statements, can be found on pages 18-21 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the govemment-wide 4 and fund financial statements. The notes to the financial statements can be found on pages 22-53 of this report. Other information Other information is in addition to the basic financial statements and accompanying notes to the financial statements. This report also presents certain required supplementary information conceming the Commission's budgetary results for the General fund and major Special Revenue funds as well as the schedules of funding progress for postretirement health care benefits, proportionate share of net pension liability, and contributions. Required supplementary information can be found on pages 54-60 of this report. Other supplementary information is presented immediately following the required supplementary information. Other supplementary information includes the combining statements referred to earlier relating to nonmajor govemmental funds; budgetary results for the nonmajor Special Revenue funds, all Capital Projects funds, and the Debt Service fund; and schedules of expenditures for local streets and roads and expenditures for transit and specialized transportation. This other supplementary information can be found on pages 61-70 of this report. Government -wide Financial Analysis As noted previously, net position may serve over time as a useful indicator of a govemment's financial position. At June 30, 2015, the Commission's assets exceeded liabilities by $463,544,547, a $84,834,219 decrease from June 30, 2014. Our analysis below focuses on the net position and changes in net position of the Commission's govemmental activities. Net Position Approximately 110%, compared to 69% in 2014, of the Commission's net position reflects its net investment in capital assets (i.e., construction in progress; land and improvements; construction and rail operating easements; rail stations; building and equipment held for resale; office improvements; and office fumiture, equipment, and vehicles), less any related outstanding debt used to acquire those assets, primarily related to land and tolled express lane projects in progress. The Commission uses these capital assets to provide transportation services to the residents and business community of the County. Although the Commission's investments in capital assets is reported net of related debt, the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The most significant portion of the Commission's net position represents resources subject to extemal restrictions on how they may be used. Restricted net position from govemmental activities represented approximately 125% and 116% of the total net position at June 30, 2015 and 2014, respectively. Restricted net position from govemmental activities decreased by $64,177,302, as a result of increased expenses for the Perris Valley Line project, 91 Project, local streets and roads allocations, and transit and specialized transportation allocations. Unrestricted net position represents the portion of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Unrestricted net position from governmental activities changed from a $470,327,554 deficit at June 30, 2014 to a $623,769,876 deficit at June 30, 2015. This deficit results primarily from the impact of recording of the Commission's long-term debt, consisting of bonds issued for Measure A highway, local street and road, and regional arterial projects. While a significant portion of the debt has been incurred to build these projects which are capital assets, upon completion for most projects with the exception of tolled express lanes, these projects are transferred to Ca!trans or the local jurisdiction. Accordingly, such projects are not assets of the Commission that offset the long-term debt in the statement of net position. The following is condensed financial data related to net position at June 30, 2015 and June 30, 2014: 5 Net Position June 30, 2015 June 30, 2014 Current and other assets $ 928,343,681 $1,117,825,287 Capital assets not being depreciated 652,690,238 468,090,945 Capital assets being depreciated, net of accumulated depreciation 56,892,255 59,380,406 Total assets 1,637,926,174 1,645,296,638 Deferred outflows of resources 22,440,872 21,837,570 Total assets and deferred outflows of resources 1,660,367,046 1,667,134,208 Long-term obligations 1,038,769,250 999,817,264 Other liabilities 156,546,106 113,462,571 Total liabilities 1,195,315,356 1,113,279,835 Deferred inflows of resources 1,507,143 Total liabilities and deferred inflows of resources 1,196,822,499 1,113,279,835 Net position: Net investment in capital assets 509,106,481 381,796,683 Restricted 578,207,942 642,385,244 Unrestricted (deficit) (623,769,876) (470,327,554) Net position at end of year $ 463,544,547 $ 553,854,373 Changes in Net Position The Commission's total program and general revenues were $394,429,708, while the total cost of all programs was $479,263,927. Total revenues increased by less than 1%, and the total cost of all programs decreased by 18%. Approximately 27% of the costs of the Commission's programs were paid by those who directly benefited from the programs or by other govemments that subsidized certain programs with grants and contributions. Sales taxes ultimately financed a significant portion of the programs' net costs. Govemmental activities decreased the Commission's net position by $84,834,219, and condensed financial data related to the change in net position is presented in the table below. Key elements of this decrease are as follows: • Charges for services increased by $172,810, or 24%, primarily due to the extension of the closing date on the sale of Commission property resulting in additional escrow deposits; • Operating grants and contributions decreased by $3,983,218, or 6%, primarily due to a state allocation received in the previous year related to the Coachella Valley/San Gorgonio Pass rail corridor; • Capital grants and contributions decreased by $1,611,805, or 2%, primarily due to state reimbursements received in the previous year related to the 91 Project; • Measure A sales tax revenues increased by $6,736,882, or 4%, due to the continued economic recovery in the region; • Transportation Development Act (TDA) sales taxes increased by $2,863,260, or 3%, as a result of an increase in Local Transportation fund revenues due to the continued economic recovery in the region; • Unrestricted investment eamings decreased $3,734,262, or 38%, due to lower monthly cash balances compared to the prior year; • Other miscellaneous revenues increased $1,087,029, or 195% due to BNSF Railway's contribution for maintenance of way and dispatching related to a shared -use agreement; and • Gain on sale of capital assets decreased $14,574, or 100% due to the sale of Commission surplus rail property in the previous year. 6 Year Ended Changes in Net Position June 30, 2015 June 30, 2014 Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Gain on sale of capital assets, net Total revenues Expenses General govemment Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Interest expense Total expenses Decrease in net position Net position at beginning of year Prior period adjustment Net position at beginning of year, as restated Net position at end of year $ 899,281 57,784,238 70,133,121 163,092,776 94,816,814 6,060,400 1,643,078 394,429,708 7,402,725 1,747,090 4,130,374 2,914,990 20,455,178 228,857,938 48,615,708 4,314,601 3,064,115 21,010,980 86,712,958 50,037,270 $ 726,471 61,767,456 71,744,926 156,355,894 91,953,554 9,794,662 556,049 14,574 392,913,586 6,994,832 1,065,476 2,195,074 3,171,842 17,255,402 339,194,681 46,677,580 3,498,420 3,216,441 23,886,840 78,723,898 52,939,762 479,263,927 578,820,248 (84,834,219) (185,906,662) 553,854,373 739,761,035 (5,475,607) 548,378,766 739,761,035 $ 463,544,547 $ 553,854,373 • General govemment expenses increased by $407,893, or 6%, primarily as a result of implementation of new pension accounting standards; • Bicycle and pedestrian facilities expenses increased by $681,614, or 64%, due to an increase in claims for approved projects; • CETAP expenses increased by $1,935,300, or 88%, due to an increase in consultant efforts related to the Mid County Parkway project and implementation of new pension accounting standards; • Commuter assistance expenses decreased by $256,852 or 8%, due to the modifications to ridematching software in the previous year offset by an increase due to implementation of new pension accounting standards; • Commuter rail expenses increased by $3,199,776, or 19%, as a result of increased commuter rail station operating and rehabilitation costs, Perris Valley Line extension project, and implementation of new pension accounting standards; • Highway expenses decreased by $110,336,743, or 33%, due to the 91 Project and 1-215 corridor improvement project costs in the previous year, offset by an increase due to implementation of new pension accounting standards; • Local streets and roads expenses increased by $1,938,128, or 4%, because of an increase in the overall Measure A 7 sales tax revenues which affect the local street and road distributions to local jurisdictions; • Motorist Assistance expenses increased by $816,181, or 23%, due to increased construction freeway service patrol and implementation of new pension accounting standards; • Planning and programming expenses decreased by $152,326, or 5%, due to reduced planning and programming activities; • Regional arterial expenses decreased by $2,875,860, or 12%, as a result of a decrease in reimbursements to local jurisdictions for approved regional arterial projects, offset by the implementation of new pension accounting standards; • Transit and specialized transportation expenses increased by $7,989,060, or 10%, due to an increase in bus transit operating and capital claims in all three geographic areas and the implementation of new pension accounting standards; and • Interest expenses decreased by $2,902,492 or 5%, primarily as a result of interest related to the issuance of debt in the previous year. The graphs below present the program and general revenues by source for the Commission's govemmental activities for the fiscal years ended June 30, 2015 and June 30, 2014: 2015 Charges for services � Capital grants and contributions Other' 18% 0% °panting grants and contributions 15M Gain on sale of capital assets, net / 0% I Unrestricted J investment earnings 296 PIP Traniporletren nevebpnrerd Aral silos Sasses 2A% Meg Lyra A ales maes 11'% 2014 Capital grants and contributions 1896 ❑peratl ng grants And conu+bulbns 16% Gain on sale of capital assets, net ____ 096 Unrestricted investment earnings 3% Mrasure A ole5 axes 40% Transportabon Qeveloptrlont Act sales tamag ? r4 8 The following graph depicts program expenses for the Commission's govemmental activities for the fiscal year ended June 30, 2015: $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 Ra frT1 9vq ��� „ a\i1� G���pm,\g` ass\s\a�oo �mm J' �y`\ uo0i 0 '� Financial Analysis of the Commission's Funds N\Qrv4as; �\s aid ioa ooas`ass�s�a���a P(oq�amRd � g`oaa\ a�e�a\� \(aaSPo�ai�oM\eyes\ a �ooa\ tJ` np�o9 e _\a01 p\a 659 Ii2. \\ ee 12015 02014 As of June 30, 2015, the Commission's governmental funds reported combined ending fund balances of $803,802,444, a decrease of $227,673,977 compared to 2014. About 3%, or $21,766,017, and less than 1%, or $4,246,940, are nonspendable and assigned fund balances, respectively. The nonspendable balances relate to prepaid amounts, and the assigned fund balances are for general government administration activities. The remainder of the fund balance is restricted to indicate the following extemally enforceable legal restrictions: • $4,618,559 in TDA funds that have been allocated to jurisdictions within the County for bicycle and pedestrian projects; • $34,780,520 of TUMF funds for new CETAP corridors in Western County; • $14,952,649 for commuter assistance activities such as expansion of park -and -ride facilities and other projects and programs that encourage commuters to use altemative modes of transportation under the Measure A program; • $49,521,258 in TDA and Measure A funds for commuter rail operations and capital projects including the Perris Valley Line extension which is expected to be completed in 2015 and $4,054,106 in Proposition 1B funds for Coachella Valley/San Gorgonio Pass rail corridor; ■ $106,199,703 in 2009 Measure A funds and toll bonds proceeds available to pay sales tax and toll revenue bonds debt service over the next year; ■ $305,364,386 for highway, economic development, and new corridor projects related to the 1989 Measure A and the 2009 Measure A programs; • $2,793 local streets and roads programs that are returned to the jurisdictions within the County for maintenance of their roads and local arterials under the 2009 Measure A program; • $7,988,086 in state funds for motorist assistance services; • $4,032,971 of TDA funds for planning and programming activities; • $67,041,294 for regional arterial projects in Western County related to the TUMF and 2009 Measure A programs; • $9,002,393 of Measure A funds for transit and specialized transportation in the Western County and $2,165,301 for specialized transportation in the Coachella Valley; and • $168,065,468 in TDA funds available to the commuter rail and bus transit operations and capital in the County. 9 The following table presents the changes in fund balances for the governmental funds for the fiscal years ended June 30, 2015 and 2014: General fund Special Revenue major funds: Measure A Westem County Measure A Coachella Valley Transportation Uniform Mitigation Fee Local Transportation Fund Capital Projects major funds: Commercial Paper Bonds Debt Service fund Nonmajor governmental funds Key elements for the changes in fund balances are as follows: Fund Balances Year Ended June 30 2015 2014 $ 10,182,797 $ 10,590,109 248,871,517 336,826,290 35,713,138 33,433,491 61,486,038 57,318,771 112,103,274 115,877,309 26,830,382 28,409,089 129,292,053 245,180,453 106,199, 703 136, 312, 284 73,123,542 67,528,625 8% % Change (4)% (26)% 7% 7% (3)% (6)% (47)% (22)% • The 4% decrease in the General fund resulted from increased transit operating and capital contributions to Southem Califomia Regional Rail Authority for Metrolink operations; • The 26% decrease in Measure A Westem County Special Revenue fund was attributed to expenditures for highway and rail projects in excess of 2009 Measure A revenues and state and federal reimbursements and disbursement of the 91 Project equity contribution from the 1989 Measure A Western County highway funds; • The 7% increase in the Measure A Coachella Valley Special Revenue fund was attributed to excess 2009 Measure A revenues over expenditures for highway and regional arterial projects; • The 7% increase in the Transportation Uniform Mitigation Fee Special Revenue fund was attributable to increased TUMF revenues and decreased reimbursements to local jurisdictions for approved projects; • The 3% decrease in the Local Transportation Fund resulted from the excess of claims of allocations for transit operations and capital projects and for bicycle and pedestrian facility projects over sales tax revenues; • The 6% decrease in the Commercial Paper Capital Projects fund was attributed to the use of commercial paper excess funds for the repayment of debt service; • The 47% decrease in Bonds Capital Projects fund was attributed to the use of bond proceeds for the 91 Project costs; • The 22% decrease in the Debt Service fund was due to the annual debt service payments offset by the transfer of 2009 Measure A Westem County bond financing funds for debt service; and • The 8% increase in nonmajor governmental funds resulted from the excess of sales tax revenues over claims of allocations for transit capital projects. General Fund Budgetary Highlights Differences between the original budget and the final amended budget for the General fund resulted in a $697,300 increase in expenditure appropriations and were related to the following changes: • $571,400 increase to general government for various operations support services; • $16,500 increase to the commuter rail program for program management activities; • $1,500 decrease for various planning and programming activities; 10 • $1,100 decrease for transit and specialized transportation activities; • $25,500 increase to debt service for capital lease payments; and • $86,500 increase to capital outlay for fumiture and equipment. During the year, General fund revenues were below budgetary estimates by $333,570; expenditures were less than budgetary estimates by $8,199,147. General fund budgetary variances between the final amended budget and actual amounts are as follows: General Fund Budgetary Variances Revenues Sales taxes Intergovernmental Investment income Other Total revenues Expenditures Current General govemment Commuter rail Planning and programming Transit and specialized transportation Debt service Capital outlay Total expenditures Year Ended June 30, 2015 Final Amended Budget Actual % Variance $ 2,900,000 $ 2,900,000 2,104,000 557,128 14,300 44,339 128,500 1,311,763 $ 5,146,800 $ 4,813,230 $ 6,457,900 16,430,100 5,881,800 351,200 25,500 656,500 $ 5,257,414 13,244,546 2,410,289 299,187 24,857 367,560 $ 29,803,000 $ 21,603,853 0% (74)% 210% 921% (6)% 19% 19% 59% 15% 3% 44% 28% Other financing sources (uses) Transfers in $ 18,099,400 $ 16,386,035 (9)% Transfers out (547,700) (2,724) 100% Net change in fund balance $ (7,104,500) $ (407,312) (94)% Significant budgetary variances between the final amended budget and actual amounts are as follows: • $1,546,872 negative variance for intergovernmental revenues primarily related to lower intergovernmental reimbursements related to commuter rail and planning, programming and monitoring expenditures; • $30,039 positive variance for investment income related to conservative investment yield estimates; • $1,183,263 positive variance for other revenues related to maintenance of way and dispatching on commuter rail services; • $1,200,486 positive variance for general govemment expenditures primarily related to professional services and other expenditures such as insurance, training, and travel; • $3,185,554 positive variance for commuter rail expenditures related to station maintenance and repairs and Metrolink operations; • $3,471,511 positive variance for planning and programming expenditures related to grade separation project funding; • $52,013 positive variance for transit and specialized transportation expenditures related to personnel costs and legal and professional services; • $643 positive variance for debt service for capital lease expenditures; • $288,940 positive variance for capital outlay expenditures due to delayed acquisition of Commission network, hardware, and software improvements; 11 • $1,713,365 negative variance for transfers in related to the anticipated needs for administrative cost allocations as well as commuter rail and planning and programming activities; and • $544,976 positive variance for transfers out related to anticipated needs for planning, programming and monitoring activities. Capital Assets and Debt Administration Capital Assets As of June 30, 2015, the Commission had $709,582,493, net of accumulated depreciation, invested in a broad range of capital assets including construction in progress; land and land improvements; construction rail operating easements and stations; and office improvements, furniture, equipment, and vehicles. The total increase in the Commission's total capital assets, net for FY 2014/15 was 35%. Major capital asset additions during 2015 included construction in progress related to preliminary engineering costs for the 1-15 Express Lanes and the Perris Valley Line extension projects, design -build activities for the 91 Project, and land acquisition for the Perris Valley Line extension project and the 91 Project. The construction in progress related to the 91 Project consists of approximately $195,426,200 in costs related to the tolled express lanes, which will be an intangible asset upon commencement of operations anticipated in 2017. The portion of 91 Project costs that will not remain as a capital, or intangible, asset of the Commission have been estimated and are not capitalized through construction. The table below is a comparative summary of the Commission's capital assets, net of accumulated depreciation: Capital Assets not being depreciated: Land and land improvements Construction easements Rail operating easements Construction in progress Total capital assets not being depreciated Capital Assets being depreciated, net of accumulated depreciation: Rail stations Temporary construction easements Office improvements, fumiture, equipment, and vehicles Total capital assets, net of accumulated depreciation Total capital assets June 30, 2015 June 30, 2014 $ 184,944,512 1,304,203 63,839,142 402,602,381 $ 183,810,462 1,267,703 53,839,142 228,825,176 652,690,238 467,742,483 55,974,021 513,538 404,696 59,058,045 348,462 322,361 56,892,255 59,728,868 $ 709,582,493 $ 527,471,351 More detailed information about the Commission's capital assets is presented in Note 4 to the financial statements. Debt Administration As of June 30, 2015, the Commission had $991,854,804 outstanding in sales tax, toll revenue bonds, and TIFIA loan. The total debt increased from the $946,622,129 outstanding as of June 30, 2014, as a result of the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan draw of $48,904,095 for the 91 Project. The Commission's sales tax revenue bonds received ratings of "AA+" from Standard & Poor's (S&P), "Aa2" from Moody's Investors Service (Moody's), and "AA" from Fitch Ratings (Fitch), and the toll revenue bonds received ratings of "BBB-" from S&P and Fitch. The TIFIA loan received a rating of "BBB-" from Fitch. In March 2005 the Commission established a commercial paper program, currently authorized at $60,000,000 to provide 12 advance funding for 2009 Measure A capital projects. The commercial paper notes are rated "Ar by S&P and "P1" by Moody's. As of June 30, 2015, the Commission had $0 in commercial paper notes outstanding. The sales tax revenue debt limitation for the Commission under the 2009 Measure A program is $975,000,000 which exceeds the total outstanding debt of $759,100,000. The Commission has also authorized the issuance of toll revenue bonds not to exceed $900,000,000, which is in excess of the total outstanding debt of $183,850,710. The TIFIA loan, which is a toll revenue bond that is subordinate to the senior toll revenue bonds, provides federal funding up to $421,054,409 which may be drawn upon after certain conditions have been met. Additional information on the Commission's long-term debt can be found in Note 6 to the financial statements. Economic Factors and Other Factors During its March 2015 Commission meeting, the Commission adopted guiding principles for use in the preparation of the FY 2015/16 Budget. These principles have been incorporated in goals of the Commission and will continue to be updated annually in response to the ever -changing social, political, and economic environment. The principles are a business planning tool designed to assist the Commission in implementing its strategic goals and objectives and lays the foundation for future financial planning for the annual budget process. The Commission adopted the FY 2015/16 annual budget on June 10, 2015. Over 70% of the $1,038,982,700 balanced budget is related to capital project expenditures, including: $358,442,600 for preliminary engineering, right of way acquisition, construction, and design -build activities related to the 91 Project consisting of tolled express and general purpose lanes and interchange improvements; $53,975,400 for the Perris Valley Line Metrolink extension project engineering, construction, and right of way acquisition; $60,479,300 for various Western County TUMF regional arterial projects; $12,375,000 for right of way acquisition and construction related to the 1-215 corridor improvements from Scott Road to Nuevo Road; $30,000,000 for preliminary engineering and right of way acquisition for the Mid County Parkway project; $5,773,200 for construction related to the Riverside quiet zones; and $12,910,000 for preliminary engineering services and right of way support services related to the 1-15 Express Lanes project. Distributions to the local jurisdictions for local streets and roads are budgeted at $50,679,000. Budgeted expenditures related to funding of public bus transit operations and capital projects in the County aggregate $117,661,200, and budgeted transfers out related to funding of commuter rail operations and capital are $25,180,000. Debt service costs are $53,919,900, or 5% of the budget. Leading economic indicators show that the local economic outlook is encouraging with the stabilization of sales tax revenues. However, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. These factors were considered in preparing the Commission's 2016 fiscal year budget, including the sales tax and TUMF fee revenue projections. There are obvious variables in terms of project financing available from federal and state funds. There is continuing uncertainty related to the fiscal condition of the state of Califomia and the impact on transportation as well as the uncertainties regarding long-term federal transportation funding. The Commission continues to study altemative financing altematives such as tolled express lane facilities and federal financing programs to support the delivery of 2009 Measure A projects. Contacting the Commission's Management This financial report is designed to provide a general overview of the Commission's finances for all those with an interest in the government's finances and to show the Commission's accountability for the money it receives. Questions conceming any of the information provided in this report or requests for additional information should be addressed to the Chief Financial Officer, Finance Department at the Riverside County Transportation Commission, 4080 Lemon Street, 3rd Floor, P.O. Box 12008, Riverside, California 92502-2208. 13 Basic Financial Statements Riverside County Transportation Commission Statement of Net Position June 30, 2015 Governmental Activities Assets Cash and investments $ 519,489,385 Receivables: Accounts 108,896,748 Advances to other governments 32,376,715 Interest 914,324 Due from other governments 3,231,611 Prepaid expenses and other assets 21,766,017 Restricted investments held by trustee 241,668,881 Capital assets not being depreciated 652,690,238 Capital assets, net of accumulated depreciation 56,892,255 Total assets 1.637,926,174 Deferred outflows of resources Accumulated decrease in fair value of derivatives 21,495,811 Differences between contributions and proportionate share of contributions 504,712 Pension contributions subsequent to measurement date 1,125,317 Total assets and deferred outflows of resources 1,661,052,014 Liabilities Accounts payable 117,827,896 Interest payable 7,666,185 Other liabilities 4,915,617 Derivative instrument -swap 21,495,811 Pension liabilities 5,325,565 Long-term liabilities: Due within one year 13,408,727 Due in more than one year 1,025,360,523 Total liabilities 1,196,000,324 Deferred inflows of resources Net differences between projected and actual earnings on pension plan investments Total liabilities and deferred inflows of resources Net position Net investment in capital assets Restricted for: Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Debt service Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Unrestricted (deficit) Total net position See notes to financial statements 1,507,143 1,197,507,467 509,106,481 4,618,559 34,780,520 14,952,649 53,591,048 9,307,554 202,587,912 74,187 7,988,086 4,032,971 67,041,294 179,233,162 (623,769,876) $ 463,544,547 16 Riverside County Transportation Commission Statement of Activities Year Ended June 30, 2015 Functions1Programs Expenses Primary Govemment Governmental Activities: General government Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Interest expense Total governmental activities See notes to financial statements $ 7,402,725 1,747,090 4,130,374 2,914,990 20,455,178 228,857,938 48,615,708 4,314,601 3,064,115 21,010,980 86,712,958 50,037,270 $ 479,263,927 Program Revenues Charges for Operating Grants Capital Grants Services and Contributions and Contributions $ 450 $ 786,869 90,655 21,307 $ 899,281 $ 13,931 $ 8,700,391 1,105,734 660,616 33,305,045 4,436,331 815,231 8,700,391 46,568 57,784,238 $ 70,133,121 70,133,121 General Revenues: Measure A sales taxes Transportation Development Act sales taxes Unrestricted investment earnings Other miscellaneous revenue Total general revenues Change in net position Net position at beginning of year, as restated Net position at end of year Net(Expense)Revenue and Changes in Net Position Governmental 5 Activities (7,388,344) (1,747,090) 4,570,017 (1,809,256) 51,125,428 (195,462,238) (48,615,708) 143,037 (2,248,884) (12,310,589) (86,666,390) (50,037,270) (350,447,287) 163,092,776 94,816,814 6,060,400 1,643,078 265,613,068 (84,834,219) 548.378,766 453,544,547 17 Assets Cash and investments Receivables: Accounts Advances Interest Due from other funds Due from other governments Prepaid expenditures and other assets Restricted investments held by trustee Total assets Liabilities and Fund Balances Liabilities: Accounts payable Due to other funds Other liabilities Total liabilities Fund balances Nonspendable-prepaid amounts Restricted for: Bicycle and pedestrian facilities CETAP Commuter assistance Commuter rail Debt service Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Assigned: General govemment Total fund balances Total liabilities and fund balances See notes to financial statements Riverside County Transportation Commission Balance Sheet- Governmental Funds June 30, 2015 MJor Funds 5peetal Revenue Measure A Measure A Westem Coachella General County Valley $ 8,427,921 $ 234,261,450 $ 31,658,742 1,426,882 76,126,821 7,190,791 361,864 8,844 228,454 34,065 1,233,967 16, 895, 925 181,255 255,446 21,510,571 Transportation Uniform Mitigation Fee $ 58,582,162 2,607,050 65,011 7,055,549 $ 11.353.060 $ 349,365085 $ 39,064.853 $ $ 904,060 $ 89,131,132 $ 2,808,356 7,386,662 543,359 266,203 3,995,774 1,170,263 100,513,568 3,351,715 255,446 2,147,481 3,532,930 21,510,571 14,952,649 47,373,777 115,695,417 33,546,534 934 1,303 40,335,776 9,002,393 2,165,301 Local Transportation Fund Capital Projects Commercial Paper Bonds Debt Service Other Nonmajor Governmental Funds Total $ 105,559,394 $ 294,959 $ 1,105,697 $ 5,535,667 $ 74,063,393 $ 519,489,385 15,250,814 83,245 3,000,000 68,309,772 $ $ 6,386,315 $ 437,419 4,246,940 10,182,797 248,871y7 35,713,138 $ 11,353,060 $ 349,385,085 $ 39,064,853 $ 6.823,734 34,780,520 26,705,518 6,294,390 108,896,748 28,070,154 3,944697 32,376,715 1,476 109,531 305,528 78,170 914,324 514,587 67,894 25,949,177 3,000,000 21,766,017 141,129,118 100,539,763 241,668,881 /23,893.453 $ 28,881.176 S 146.356,937 5 106,380,958 $ 80.435.953 $ 954,061,247 11,790,179 $ $ 5 $ 6,807,854 $ 117,827,896 • 16,896,925 181,255 504,557 25,949,177 2,050 794 168,959 6,481,730 11,790,179 2-050.794 17,064,8E14 181,255 7,312.411 150,258,803 4,618,559 4,054,106 - 106,199,703 26, 830, 382 129, 292, 053 55 - 7,988,086 500,041 107,484,715 60,580,753 21,766,017 4,618,559 34,780,520 14,952,649 53,575,364 106,199,703 305,3E4,386 2,793 7,988,086 4,032,971 67,041,294 179,233,162 4,246,940 61,486,038 112,103,274 26,830,362 129,292,053 106.199.703 73,123.542 803,802t444 68.309.772 $ 123-893,453 $ 28.8-61,176 $ 146.356.937 $ 106,380958 $ 80,4435.953 $ 954.061.247 18 Riverside County Transportation Commission Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2015 Total fund balances - Govemmental funds (page 18) s 803,802,444 Amounts reported for governmental activities in the statement of net position (page 16) are different because: Amounts due from other governments are not an available resource and therefore, is not reported in the funds. 231,611 Deferred outflows of resources relate to the accumulated decrease in the fair value of derivatives, which is not recorded in the funds. 21,495,811 Deferred oufflows of resources related to pension contributions subsequent to measurement date. 1,125,317 Deferred outflows of resources related to difference between contributions and proportionate share of contributions. 504,712 Deferred inflows of resources related to net differences between projected and actual earnings on pension plan investments. (1,507,143) Capital assets, less related accumulated depreciation, used in governmental activities are not financial resources and therefore are not reported in the funds. 709,582,493 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as 1,566,113 unearned revenue in the funds. Interest payable on bonds outstanding is not due and payable in the current period and therefore is not reported in the funds. (7,666,185) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Those liabilities consist of: Derivative instrument -swap (21,495,811) Net pension liability (5,325,565) Compensated absences (689,775) Capital lease obligation (60,357) Multi -Species Habitat Conservation Plan funding liability (15,000,000) Remediation liability (260,826) TIFIA loan (48,904,095) Sales tax bonds payable (759,100,000) Toll revenue bonds payable (183,850,710) Premium on sales tax bonds payable (33,978,251) Discount on sales tax revenue bonds payable 781,099 Discount on toll revenue bonds payable 2,293.665 Net adjustment (1,065,590,626) Net position of governmental activities (page 16) $ 463,544,547 See notes to financial statements 19 Revenues Sales taxes Transportation Uniform Mitigation Fee Intergovernmental Investment income Other Total revenues Expenditures Current General government Bicycle and pedestrian facilites CETAP Commuter assistance Commuter rail Highways Local streets and roads Motorist assistance Planning and programming Regional arterials Transit and specialized transportation Total programs Debt service: Principal Interest Total debt service Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Debt issuance Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See notes to financial statements Riverside County Transportation Commission Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended June 30, 2015 Speclai Revenue MeasureA Measure Western Coachella General County Valley $ 2,900,000 $ 121,356,582 $ 37,719,526 $ 557,128 102,245,933 44,339 1,079,644 1,311,763 826,286 4,813,230 225,508,445 5,257,414 2.032.911 2,891,431 13,244,546 98,302,229 308,410,196 34,295,793 2,410,289 5,012,254 299,197 6325.879 21211,419 4515,270M 11,654 13,203 24.857 367,560 107,774 21,503.853 456,378,467 (16,790,623) (230,870,022) 48,904,095 16,386,035 152, 689, 8 60 (2,724) (58,678706) 15,391,311 142,915,249 139,210 37,858,736 16,717,913 13,203,354 5.646.060 35 767267 Traneporla6on Uniform Mitigation Fee MyorFunds - $ 17,400,782 271,067 17,671,849 4,135,996 16,003,843 20.139, 839 35.767.267 20,139.839 2,091,469 (2,467,990) 169.178 7.055.549 (4282921 196,178 6 636 257 Local Transportation Fund CRAW PmLects Commercial Paper 81,332,461 $ - $ 3,140 385,649 1,941,432 81,721,250 1,941,432 12,000 1,747,090 680,358 67.042,773 98462.221 60,482,221 Bonds 892,281 892,281 Deck Service 2,764,418 1,183,910 3,949,328 7,400,000 45.900.072 53.300,072 Other Nonmajor Govemmerkal Funds Total $ 14,601,021 $ 257,909,590 17,400,782 4,945,042 110, 515, 661 320,694 6,258,226 404,310 2,542,359 20,271,067 394,626,618 078,0M 1,118,598 4,317,981 8,711 8,211,585 14,532,971 53, 300, 072 14, 832, 971 12,239.029 1.941.432 892,281 (49,351,744) 5,738196 C15,013,064] (16,013864) (3,620,139) (3,520.135) 32,793,399 {149,574,WO) (116,784 34 22,184,904 1,328231 {2,946,741) 11,471,410) 10,239183 (143,179) 7,302,325 1,747,090 4,135,996 2,891,431 112,424,851 325,128,109 48,615,815 4,317,961 3,099,358 21,016,097 95, 725, 394 817,404,427 7,411,654 46,013,275 53,324,029 475,314 971,213 690 (276,578,072) 48,904,095 232,626,1E6 1232,625,155) 45.934,095 (407,312) (87,954,773) Z279,647 4,167,267 (3,774,035) (1,578,707) (115,888,400) (30,112,581) 5,594,917 (227,673,977) 1p,590109 336,826.290 33.433.491 57,318,771 115877309 28409089 245180453 136,3i2.284 87,528,625 1031476421 $ t0,182.797 $ 7 .517 35.71 t38 S129,29,053 108.199.703803,802. 20 Riverside County Transportation Commission Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2015 Net change in fund balances • Total governmental funds (page 20) Amounts reported for governmental activities in the statement of activities (page 17) are different because: Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The adjustment combines the net changes of the following amounts: $ (227,673,977) Capital outlay 185,797,686 Depreciation expense (3,686,544) Net adjustments 182,111,142 Revenues in the statement of activities that do not provide current financial resources (196,910) are not reported as revenues in the funds. The issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, govemmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The adjustment combines the net changes of the following amounts: Principal payments for sales tax revenue bonds 7,400,000 TIFIA loan proceeds (48,904,095) Amortization of sales tax revenue bonds premium 2,175,262 Amortization of sales tax revenue bonds discount (89,755) Amortization of toll revenue bonds discount (73,073) Net pension liability 150,039 Change in deferred outflows of pension resources 1,630,029 Change in deferred inflows of pension resources (1,507,143) Capital lease payments 11,654 Change in accrued interest (395,414) Change in accretion of capital appreciation toll revenue bonds (3,728,580) Change in Multi -Species Habitat Conservation Plan funding liability 3,000,000 Change in remediation liability 1,315,580 Net adjustments (39,015,496) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in govemmental funds. The adjustment combines the net changes of the compensated absences. (58,978) Change in net position of governmental activities (page 17) S (84,834,219) See notes to financial statements 21 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies Reporting entity: The Riverside County Transportation Commission (Commission) was formed in 1976 under Division 12 (commencing with Section 130000) of the Califomia Public Utilities Code. The Commission is a special district governed by a 34-member board of commissioners (Board) consisting of one representative from each city in the county, all five county supervisors, and a nonvoting state representative. The Commission provides short-range transportation planning and programming for Riverside County (County), which includes the administration of the Local Transportation Fund (LTF) and the State Transit Assistance (STA) programs created under the Transportation Development Act (TDA) by the State of California (State). The LTF is administered by the Commission on behalf of the County. The purpose of this program is to allocate funds for public transportation needs, local streets and roads, bicycle and pedestrian facilities, and multimodal transportation terminals. The STA program allocates funds for public transportation purposes to those geographic areas with special public transportation needs, which cannot be met otherwise. On November 8, 1988, the Commission was empowered by the voters of the County, under Ordinance No. 88-1 (1989 Measure A), to collect a one-half of one percent sales tax for the purpose of improving the transportation system of the County. Measure A was enacted, in part, pursuant to the provisions of Division 25 (commencing with Section 240000) of the California Public Utilities Code and Section 7252.22 of the Revenue and Taxation Code. On November 12, 2002 Riverside County's voters approved a 30-year renewal of Measure A under Ordinance No. 02-001 (2009 Measure A). The voter action ensured the replacement of the 1989 Measure A program when it expired in 2009 with a new 30-year program that will continue funding transportation improvements until June 2039. In connection with the 2009 Measure A program, the County and cities in the Westem County area implemented a Transportation Uniform Mitigation Fee (TUMF) program to fund a regional arterial system to handle the traffic demands in the Western Riverside County (Westem County) area as a result of future development. Under the 2009 Measure A program, the Commission shall receive the first $400 million of TUMF revenues to fund the regional arterial projects and new Community Environmental Transportation Acceptability Process (CETAP) corridors included in the 2009 Measure A Transportation Improvement Plan. Under the Memorandum of Understanding (MOU), the majority of net revenues are allocated in equal amounts to the Commission for regional arterial projects and to Westem Riverside Council of Govemments (WRCOG) for local arterial projects; a small percentage is allocated for public transit. In September 2008, the Commission approved an amendment to the MOU whereby the $400 million cap was lifted and the Commission will continue to receive its share of TUMF revenues indefinitely. Accounting principles generally accepted in the United States require that the reporting entity include the primary govemment, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary govemment are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The basic financial statements include all funds of the Commission including those of the Service Authority for Freeway Emergencies (SAFE), a component unit, for which the Commission is considered financially accountable. SAFE was created under Chapter 14 (commencing with Section 2550) of Division 3 of the Califomia Streets and Highways Code and Sections 2421.5 and 9250.1 of the Vehicle Code. SAFE receives monies from fees levied on registered vehicles to be used to implement and maintain an emergency motorist aid system, as specified, on portions of the Califomia Freeway and Expressway System in the County. The governing body of SAFE is substantially identical to that of the Commission, and management of the Commission has operational responsibility for SAFE. SAFE is presented as a special revenue fund. Separate financial statements are not issued for SAFE. There are many other govemmental agencies, including the County of Riverside, providing services within the area served by the Commission. These other governmental agencies have independently elected goveming boards and consequently are not under the direction of the Commission. Financial information for these agencies is not included in the accompanying financial statements. 22 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued Basis of presentation: The Commission's basic financial statements consist of govemment-wide financial statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. Govemment-wide statements: The statement of net position and the statement of activities report information on all of the activities of the Commission. The effect of interfund activity has been removed from these statements. These statements report govemmental activities, which normally are supported by taxes and intergovemmental revenues. The Commission does not have any business -type activities, which rely to a significant extent on charges and fees for support. The statement of activities demonstrates the degree to which the program expenses of a given function are offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other intemally dedicated resources, which are properly not included among program revenues, are reported instead as general revenues. Fund financial statements: The fund financial statements provide information about the Commission's govemmental funds; the Commission has no proprietary or fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. The Commission has categorized the Measure A Coachella Valley and Transportation Uniform Mitigation Fee Special Revenue funds and the Commercial Paper Capital Projects fund as major funds for public interest reasons. The Commission believes that these judgmentally determined major funds are particularly important to the financial statement users. All remaining govemmental funds are aggregated and reported as nonmajor funds. The Commission reports the following major governmental funds: General Fund: The General Fund is the general operating fund of the Commission and accounts for financial resources not required to be accounted for in another fund. Measure A Western County Special Revenue Fund: This fund accounts for the revenues from sales taxes which are restricted to expenditures for 1989 Measure A and 2009 Measure A Westem County programs. Measure A Coachella Valley Special Revenue Fund: This fund accounts for the revenues from sales taxes which are restricted to expenditures for 2009 Measure A Coachella Valley programs. Transportation Uniform Mitigation Fee Special Revenue Fund: This fund accounts for TUMF revenues, which are restricted to expenditures for Westem County regional arterial and CETAP projects. Local Transportation Fund: This special revenue fund accounts for the one -quarter percent of the state sales tax collected within the County under TDA for planning and programming, bicycle and pedestrian facilities, and transit operations including the Commission's commuter rail operations. Commercial Paper Capital Projects Fund: This fund records proceeds from the issuance of commercial paper notes and the use of these proceeds for capital projects included in the 2009 Measure A. Bonds Capital Projects Fund: This fund records proceeds from the issuance of sales tax and toll revenue bonds and the use of these proceeds for capital projects included in the 2009 Measure A. Debt Service Fund: This fund accounts for the resources accumulated and payments made for principal and interest on the sales tax and toll revenue bonds. 23 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued Measurement focus and basis of accounting: The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when eamed, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred; however, principal and interest expenditures on long-term debt as well as compensated absences and claims and judgments are recorded only when payment is due. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on behalf of the Commission, TUMF, intergovemmental revenues when all applicable eligibility requirements have been met, interest revenue, and vehicle registration user fees. Cash and investments: The Commission maintains cash and investments in accordance with an investment policy adopted initially by the Board in September 1995, and most recently amended in September 2014. The investment policy complies with, or is more restrictive than, applicable state statutes. This investment policy requires the Commission's investment program to meet three criteria in the order of their importance: safety, liquidity, and retum on investments. Investments of bond and commercial paper proceeds as permitted by the applicable debt documents are maintained by U.S. Bank, as custodial bank, and the earnings for each bond and commercial paper issue are accounted for separately. Cash from other Commission revenue sources is commingled for investment purposes, with investment eamings allocated to the different funds based on average monthly dollar balances in the funds. The Commission's investment policy is summarized in the table below; investments held by bond trustees are governed by the provisions of the Commission's bond indentures. Other investments permitted by the Califomia Govemment Code (Code) are permitted but only with prior Board authorization; securities that could result in zero interest accrual if held to maturity are ineligible. Authorized Investment Type United States (U.S.) Treasury obligations Federal agency securities State/Municipal obligations Mortgage and asset -backed securities Repurchase agreements U.S. corporate debt Commercial paper Banker's acceptances Money market mutual funds Riverside County Pooled Investment Fund (RCPIF) Local Agency Investment Fund Negotiable certificates of deposit Federally insured certificates of deposit Collateralized certificates of deposit Time deposits Maximum Effective Maturity 5 years 5 years 5 years 5 years 30 days 5 years 270 days 180 days Not applicable Not applicable Not applicable 180 days 1 year 1 year 5 years Maximum Percentage of Portfolio No limit No limit 25% 10% No limit 25% 25% 40% 20% No limit No limit 15% 20% 15% No limit Maximum Investment in One Issuer No limit No limit No limit No limit None None None 30% None Set by RCPIF Set by LAIF None None None None Minimum Ratings None None Aa3/AA- A3/A-/A- A Aa3/AA- A None None Not applicable Not applicable P-1/A-1/F-1 Not applicable Not applicable Not applicable 24 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued LAIF is regulated by Code Section 16429 and is under the management of the State Treasurer with oversight provided by the Local Agency Investment Advisory Board. Oversight of the RCPIF is conducted by the County Treasury Oversight Committee. All investments, except for those related to bond reserve funds, are subject to a maximum maturity of five years unless specific direction to exceed the limit is given by the Board. Local Transportation Fund moneys are legally required to be deposited in the RCPIF. The RCPIF and the LAIF are carried at fair value based on the value of each participating dollar as provided by the RCPIF and LAIF, respectively. The fair value of the Commission's position in the RCPIF and LAIF is the same as the value of the pool shares. Investments in U.S. government, federal agency, mortgage and asset -backed, municipal, corporate, and commercial paper securities are carried at fair value based on quoted market prices. Money market mutual funds are carried at fair value based on each fund's share price. Bank balances are secured by the pledging of a pool of eligible securities to collateralize the Commission's deposits with the bank in accordance with the Code. Accounts receivable: Accounts receivable consist primarily of Measure A and LTF sales tax revenues from the State Board of Equalization on all taxable sales within the County of Riverside, Califomia through June 30, 2015. Interfund transactions: During the course of operations, numerous transactions occur between individual funds involving goods provided or services rendered. There are also transfers of revenues from funds authorized to receive the revenue to funds authorized to expend it. Outstanding interfund balances are reported as due from/to other funds; internal financing balances are reported as advances to/from other funds. Prepaid items and other assets: Certain payments to vendors and condemnation payments with the State, which are related primarily to the SR-91 corridor improvement project, reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method in both the govemment-wide and fund financial statements. Restricted investments held by trustee: Restricted investments held by trustee represent unexpended bond proceeds, interest eamings thereon, and capitalized interest and reserve amounts for bonds. Under the related bond resolutions and indentures, any remaining bond proceeds are restricted for the use of future construction improvements to the respective projects, for debt service, or for reserve requirements in accordance with applicable debt covenants. Capital assets: Capital assets consisting of land and land improvements; construction in progress; construction and rail easements; buildings and equipment; rail stations; office improvements; and office fumiture, equipment, and vehicles are reported in govemmental activities in the govemment-wide financial statements. Capital assets are defined by the Commission as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of three years and are primarily included within the function of current expenditures in the fund financial statements. Such assets are recorded at historical costs or estimated historical costs if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. Highway construction and certain purchases of right of way property, for which title vests with the Califomia Department of Transportation (Caltrans), are included in highway program expenditures. Infrastructure consisting primarily of highway construction and right of way acquisition is generally not recorded as a capital asset, because the Commission does not have title to such assets or rights of way. However, costs related to the development of tolled express lanes are recorded as land and land improvements and construction in progress. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. 25 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued Rail stations, temporary construction easements, office improvements, fumiture and equipment, and vehicles of the primary govemment are depreciated using the straight-line method over the following estimated useful lives: Asset Type Useful Life Rail stations 10 to 30 years Temporary construction easements 1 to 3 years Office improvements 7 to 10 years Office furniture and equipment 3 to 5 years Vehicles 5 years Project costs that have been incurred for the tolled express lanes projects, consisting of the SR-91 corridor improvement project and the Interstate 15 (1-15) corridor improvement project, and are expected to remain the Commission's assets, will be capitalized as intangible assets that will be amortized over the life of the service concession arrangement with Caltrans. These capitalizable costs have been accumulated in the capital assets as land and land improvements and construction in progress. The costs of the tolled express lanes projects that are not capitalized are expensed as incurred based on management's estimation which is generally based upon the allocation of Measure A and other funding sources, including toll -supported debt. As of June 30, 2015, the estimated project costs incurred but not capitalized related to the 91 Project is approximately 88% of right of way and 60% of engineering and construction costs, or approximately $113,936,000 and $293,140,000, respectively. All costs related to the 1-15 corridor improvement project are considered capitalizable. Compensated absences: Vacation leave in governmental funds that is due and payable at year-end is reported as an expenditure and a liability of the General fund. All earned vacation leave, including the amount that is not currently due, is reported as a long-term liability in the govemment-wide financial statements. Sick leave is recorded as an expenditure in the General fund when taken by the employee. Employees with continuous five years of service have the option of being paid for sick leave accumulated in excess of 240 hours at a rate of 50% (i.e., one hour's pay for every two hours in excess of 240). Any sick leave in excess of 240 hours is accrued at fiscal year end, and a liability is reported in the govemment-wide financial statements. Sick leave that is due and payable at year-end is reported as an expenditure and a fund liability of the General fund. Pensions: For purposes of measuring the net pension liability and deferred outlows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the Commission's Califomia Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deduction from Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. Risk management: The Commission is exposed to various risks of loss related to workers' compensation; torts; theft of, damage to, or destruction of assets; and errors or omissions. The Commission protects itself against such losses by a balanced program of risk retention, risk transfers, and the purchase of commercial insurance. Loss exposures retained by the Commission are treated as normal expenditures and include any loss contingency not covered by the Commission's purchased insurance policies. Construction projects and rail properties are protected through a combination of commercial insurance, insurance required of Commission consultants, and a self-insurance fund established by the Southem Califomia Regional Rail Authority (SCRRA). Settled claims have not exceeded insurance coverage in any of the past three fiscal years. 26 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued Deferred outflows of resources: In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources, or expenditure, until then. The Commission only has two items, accumulated decrease in fair value of derivatives and pension contributions subsequent to measurement date, which qualify for reporting in this category in the govemment-wide statement of net position. Because the terms of the derivatives qualify as a hedge, the change in the fair value of derivatives is deferred until termination or maturity of the derivatives. The Commission's pension contributions made subsequent to the measurement date and the fiscal year end are deferred until the subsequent measurement date. Deferred inflows of resources: In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources, or revenue, until then. The Commission only has one item, net differences between projected and actual earnings on pension plan investments, which qualifies for reporting in this category in the government -wide statement of net position. The difference between projected and actual earnings on pension plan investments is deferred and amortized over the expected average remaining service life. Fund equity: In the fund financial statements, the govemmental funds may report fund balances in various categories based on the nature of any limitations requiring the use of the resources for specific purposes: Nonspendable fund balances cannot be spent, because they are in nonspendable form such as prepaid expenditures or are required to be maintained intact. Restricted fund balances are restricted for specific purposes by third parties or enabling legislation. Committed fund balances include amounts that can be used only for specific purposes determined by adoption of a resolution of the Board. These committed amounts cannot be used for any other purpose unless the Commission removes or changes the specified use through the same type of formal action taken to establish the commitment. Assigned fund balances comprise amounts intended to be used by the Commission for specific purposes but are not restricted or committed. The Board delegates the authority to assign amounts to be used for specific purposes to the Chief Financial Officer. Assignments generally only exist temporarily; an additional action does not have to be taken for the removal of an assignment. Unassigned fund balance is residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories. When both restricted and unrestricted resources are available for an incurred expenditure, it is the Commission's policy to spend restricted resources first and then unrestricted resources, as necessary. When unrestricted resources are available for an incurred expenditure, it is the Commission's policy to use committed amounts first, followed by assigned amounts, and then unassigned amounts. In June 2012, the Commission adopted a resolution to establish a policy on reporting and classifying fund balance in the General fund. Net position: In the government -wide financial statements, net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows and is classified into three categories: Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets and excludes unspent debt proceeds. 27 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 1. Summary of Significant Accounting Policies, Continued Restricted —net position represents restricted assets less liabilities and deferred inflows of resources related to those assets. Restricted assets are recorded when there are limitations imposed by creditors (such as through debt covenants), contributions, or laws and regulations of other govemments or constraints imposed by law through constitutional provisions or through enabling legislation. Unrestricted —(deficit) represents the amount of unrestricted resources that will need to be provided for in future periods. When both restricted and unrestricted resources are available for use, it is the Commission's policy to use restricted —net position resources first and then unrestricted —net position resources, as they are needed. Administration expenditures: The Commission's staff and resources are used in the performance of its responsibilities relating to the activities of the Commission and its component unit. Accordingly, the Commission allocates salaries and benefits to each applicable fund on the basis of actual hours spent by activity, and other indirect overhead is allocated based on a systematic basis. Administrative salaries and benefits of $1,194,949 allocated to Measure A in 2015 were less than 1% of revenues and in compliance with the law. Note 2. Cash and Investments Cash and investments at June 30, 2015 consist of the following: Unrestricted Cash in bank Petty cash RCPIF Operations pooled investments tAIF Investments with fiscal agents Total cash and investments Cash Investments Total Restricted Investments $ 7,078,023 S - $ 7,078,023 1,018 1,018 458,698,720 458,698,720 — 50,074,133 50,074,133 — 3,637,491 3,637,491 $ 7,079,041 $ 512,410,344 $ 519,489,385 241,668,881 $ 241,668,881 Total $ 7,078,023 1,018 458,698,720 50,074,133 3,637,491 241,668,881 $ 761,158, 266 Restricted investments at June 30, 2015 represent investments held by bond trustees for project costs and debt service. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission's investment policy follows the Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. In accordance with the Commission's investment policy, restricted investments are invested in accordance with the maturity provisions of the specific bond indenture, which may extend beyond five years. As of June 30, 2015, the Commission had the following investments: Investments Unrestricted: RCPIF Operations pooled investments tAIF Interest Rate Fair Value Principal Range $ 458,698,720 $458,659,731 50,074,133 50,059,737 3,637,491 3,636,123 Total unrestricted investments $ 512,410,344 $512,355,591 Unrestricted investment portfolio weighted average 0.09% —1.24% 0.00% — 5.18% 0.23% — 0.30% Maturity Range 7/1/15 — 6/29/20 11/1/15 — 2/18/20 232 — 239 days Weighted Average Maturity (Year) 1.102 2.076 239 days or .65 1.28 28 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 2. Cash and Investments, Continued Fair Value Restricted: Commercial paper $101,167,937 Corporate notes 47,277,535 Money market mutual funds 4,768,518 Mortgage and asset -backed 29,954,797 securities Municipal bonds 14,446,899 U.S. agency securities 3,938,553 U.S. Treasury obligations Variable rate notes Total restricted investments Principal $101,124,812 47,635,816 4,768,518 29,969,243 14,408,797 3,921,183 32,724,642 32,317,239 7,390,000 7,390,000 $ 241,668,881 $241,535,608 Restricted investment portfolio weighted average Interest Rate Range 0.000% to .192% 0.529% to 2.371 % 0.000% to 0.001 % 0.000% to 3.529% 0.530% to 1.656% 0.180% to 2.169% 0.460% to 2.205% 0.140% Weighted Average Maturity Range Maturity (Year) 7/2/15 to 8/17/15 0.045 9/29/15 to 1 /30/20 7/1/15 7/28/15 to 5/16/55 12/1/15 to 10/1/17 6/19/17 to 1/13/22 11/30/16 to 5/15/23 11 /1 /20 5.345 2.096 0.001 6.997 0.909 2.931 3.644 2.074 The weighted average maturity is calculated using the investment's effective duration weighted by the investment's fair value. As of June 30, 2015, mortgage and asset -backed securities totaled $29,954,797. The underlying assets are consumer receivables that include credit cards, auto/equipment, and home loans. The securities have a fixed interest rate and are rated AAA/Aaa by at least two of the three nationally recognized statistical rating organizations, except for $29,140,700 which is rated AA+ by S&P. As of June 30, 2015, the Commission had the following variable rate note investments: Investments Fair Value Coupon Type Coupon Reset Date New Hampshire Department of Labor $ 7,390,000 Variable Total variable rate notes $ 7,390,000 Monthly These investments are highly sensitive to interest rate fluctuations which affect expected cash flows and, accordingly, fair value. Custodial credit risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a govemment will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a govemment will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Commission's investment policy requires that a third party bank trust department hold all securities owned by the Commission. All trades are settled on a delivery versus payment basis through the Commission's safekeeping agent. The Commission has deposits with a bank balance of $11,084,703 with a financial institution; bank balances over $5,000,000 are swept daily into a money market account. Of the bank balance, up to $250,000 is federally insured under the Federal Depository Insurance Corporation with balances in excess of $250,000 collateralized in accordance with the Code; however, the collateralized securities are not held in the name of the Commission. 29 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 2. Cash and Investments, Continued Credit risk: The Commission's investment policy as well as the specific bond indentures set minimum acceptable credit ratings for investments from any of the three nationally recognized statistical rating organizations. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of each category's fair value at June 30, 2015; securities denoted as NR are not rated by one of the nationally recognized statistical rating organizations. Investments Moody's S&P Fitch % of Portfolio RCPIF Aaa NR AAAIV1 60.83% tAIF NR NR NR 0.48% Commercial paper Various P-1 A-2 NR 0.57% Various P-2 A-2 F1 0.69% Various P-2 A-2 F2 6.10% Various P-2 A-2 NR 5.17% Various P-3 A-2 NR 0.89% Various Aa3 AA NR 0.06% Corporate notes Notes Al A A 0.08% Notes Al A A+ 0.08% Notes Al A+ AA- 0.07% Notes Al A+ NA 0.12% Notes Al AA- A+ 0.04% Notes Al AA+ NR 0.17% Notes A2 A A 0.19% Notes A2 A A+ 0.04% Notes A2 A AA- 0.04% Notes A2 A NR 0.08% Notes A2 A- A- 0.03% Notes A2 A- A+ 0.11 % Notes A2 A- NR 0.04% Notes A2 A+ AA- 0.20% Notes A2 A+ NR 0.17% Notes A2 AA- A 0.04% Notes A3 A A 0.04% Notes A3 A A+ 0.11 % Notes A3 A- A 0.34% Notes A3 A- A- 0.16% Notes A3 A- NR 0.07% Notes A3 A+ A- 0.04% Notes Aa1 AA AA 0.10% Notes Aa1 AA NR 0.47% Notes Aa1 AA- AA- 0.16% Notes Aa1 AA- NR 0.19% Notes Aa1 AA+ NR 1.09% Notes Aa2 A AA- 0.02% Notes Aa2 A+ AA- 0.07% Notes Aa2 A+ NA 0.04% Notes Aa2 AA A+ 0.16% Notes Aa2 AA- AA- 0.49% Notes Aa3 AA- A 0.36% 30 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 2. Cash and Investments, Continued Investments Moody's S&P Fitch % of Portfolio Notes Aa3 AA- A+ 0.06% Notes Aa3 AA- AA 0.27% Notes Aa3 AA- AA- 0.08% Notes Aa3 AA- NR 0.40% Notes Aaa AAA NR 0.35% Notes Aaa NR AAA 0.33% Notes Aaa NR NR 0.13% Notes Al A+ NR 0.10% Notes Al AA NR 0.10% Notes A2 AA NR 0.10% Notes Aa2 AA NR 0.14% Notes Aa3 A NR 0.10% Notes Aa3 A+ NR 0.10% Money market mutual funds Funds NR NR NR 0.73% Mortgage and asset -backed securities Securities Aaa AA+ AAA 3.39% Securities Aaa AAA NR 0.40% Securities NR AAA AAA 0.09% Securities Aaa NR AAA 0.35% Securities Aaa NR NR 0.30% Securities NR NR NR 0.06% Municipal bonds Bonds Aa2 AA+ NR 1.34% New York City Aa2 AA AA 0.16% City of Dallas Aa1 AA+ NR 0.37% Kentucky Housing Aaa AAA NR 0.04% Pasadena Unified School District Aa2 A+ NR 0.06% Bonds Aa2 AA NR 0.08% Bonds Aa3 AA- NR 0.16% U.S. agency notes FNMA and GMNA Aaa AA+ AAA 0.52% Federal Home Loan Banks Aaa AA+ NR 0.47% U.S. Treasuries Treasury Aaa AA+ AAA 3.89% Treasury NR AA+ AAA 0.40% Treasury Aaa AA+ NR 0.05% Treasury Aaa NR NR 3.69% Variable rate notes Notes NR NR NR 0.98% Total 100.00% Concentration of credit risk: The Commission's investment policy places a limit of 10% on the amount of investment holdings with any one non-U.S. Govemment or non-federal agency issuer. As of June 30, 2015, the Commission did not have investments in any one issuer that represent more than 5% of the Commission's total investments. 31 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 3. Advances The Commission has approved interest -bearing advances to other governments, which may be funded by debt proceeds, to the cities of Blythe, Canyon Lake, and Indio and the Coachella Valley Association of Govemments (CVAG) in the amounts of $1,500,000, $600,000, $4,000,000, and $43,300,000, respectively. The cities have pledged their share of 2009 Measure A local streets and roads revenues, and CVAG has pledged its share of 2009 Measure A highway and regional road revenue allocations in accordance with repayment terms specified in each agreement for actual advances. Repayment amounts are withheld from revenue allocations on a monthly basis. The final maturities of the cities of Blythe and Indio advances are due on or before September 1, 2019; the final maturity of the city of Canyon Lake advance is due on or before December 1, 2019; and the final maturities of the CVAG advances are due on or before September 1, 2029. Interest rates range from .910% to 7.307%, excluding the portion of cash subsidy payments (as discussed in Note 6) that may be received by CVAG to reduce its repayment obligations. The available advances to CVAG are $0 as of June 30, 2015. The outstanding advances, including capitalized interest of $1,566,212, as of June 30, 2015 were as follows: City of Blythe City of Canyon Lake City of Indio Coachella Valley Associated Governments Total advances receivable Note 4. Capital Assets Capital assets activity for the year ended June 30, 2015 was as follows: Governmental activities Capital assets not being depreciated: Land and land improvements Construction in progress Rail operating easements Construction easements Total capital assets not being depreciated Capital assets being depreciated: Rail stations Construction easements Office improvements Office furniture, equipment and vehicles Total capital assets being depreciated Less accumulated depreciation for: Rail stations Construction easements Office improvements Office furniture, equipment and vehicles Total accumulated depreciation Total capital assets being depreciated, net Governmental activities capital assets, net Balance July 1, 2014 $ 183,810,462 228,825,176 53,839,142 1,267,703 Additions/ Transfers Retirements/ Transfers/ Deletions $ 878,463 361,864 2,504,293 28,632,095 $ 32,376,715 Balance June 30, 2015 $ 1,491,144 $ (357, 094) 173, 777, 205 10,000,000 36,500 467,742,483 98,812,574 348,462 72,782 1,537,672 100,771,490 (39,754,529) (68,749) (1,219,344) 185,304,849 21,366 371,782 465,041 (357,094) (385,291) $ 184,944,512 402,602,381 63,839,142 1,304,203 652,690,238 98,833,940 720,244 72,782 1,617,422 858,189 (3,105,390) (206,706) (2,303) (372,145) (41,042,622) (3,686,544) 59,728,868 (2,828,355) $ 527,471,351 $ 182,476,494 (385,291) 101,244,388 377,033 377,033 (8,258) $ (365,352) (42,859,919) (206,706) (71,052) (1,214,456) (44,352,133) 56,892,255 $ 709,582,493 32 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 4. Capital Assets, Continued Depreciation expense was charged to functions/programs of the Commission's govemmental activities during the year ended June 30, 2015 as follows: General government Commuter rail Commuter assistance Highway Planning and programming Total depreciation expense Note 5. Interfund Transactions $ 125,980 3,312,893 34,583 208,856 4.232 $ 3,686,544 Due from/to other funds: The composition of balances related to due from other funds and due to other funds at June 30, 2015 is as follows: Receivable Fund General fund General fund General fund General fund General fund General fund General fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Commercial Paper Capital Projects fund Commercial Paper Capital Projects fund Bonds Capital Projects fund Payab[e Fund Nonmajor Governmental funds Nonmajor Governmental funds Transportation Uniform Mitigation Fee Special Revenue fund Transportation Uniform Mitigation Fee Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund Bonds Capital Projects fund Debt Service fund Measure A Western County Special Revenue fund Nonmajor Governmental funds Measure A Coachella Valley Special Revenue fund Measure A Coachella Valley Special Revenue fund Total due from/to other funds $ 25,949,177 Amount $ 8,479 456,710 420,292 17,127 171,613 159,500 246 16,895,925 181,255 7,055,549 Explanation Fringe benefits allocation Administrative cost allocation Administrative cost allocation Fringe benefits allocation Fringe benefits allocation Reimbursement for rail station costs Fringe benefits allocation Reimbursement for highway capital costs Advance loan payment adjustment Reimbursement for regional arterial project costs 39,368 Advance loan payment adjustment 475,219 Advance loan payment adjustment 67,894 Advance loan payment adjustment 33 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 5. Interfund Transactions, Continued Interfund transfers: During 2015, interfund transfers were as follows: Transfers Out General fund General fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Transfers In Amount Measure A Western County $ 1,294 Special Revenue fund Measure A Coachella Valley 1,430 Special Revenue fund General fund 159,500 Transportation Uniform 7,055,549 Mitigation Fee Special Revenue fund Debt Service fund 18,670,258 Measure A Western County Bonds Capital Projects fund 32,793,399 Special Revenue fund Transportation Uniform General fund 420,292 Mitigation Fee Special Revenue fund Local Transportation Fund General fund 15,349,533 Local Transportation Fund Nonmajor Governmental 663,531 funds Commercial Paper Capital Debt Service fund 3,514,646 Projects fund Commercial Paper Capital Projects fund Bonds Capital Projects fund Debt Service fund Debt Service fund Nonmajor Governmental funds Nonmajor Governmental funds Nonmajor Governmental funds Nonmajor Governmental funds Total transfers Measure A Coachella Valley Special Revenue fund Measure A Western County Special Revenue fund Measure A Western County Special Revenue fund Measure A Coachella Valley Special Revenue fund General fund Measure A Western County Special Revenue fund Nonmajor Governmental funds Nonmajor Governmental funds 5,493 149,574,080 2,764,486 181,255 456,710 350,000 116,000 548,700 $232,626,156 Explanation Reimbursement for salaries and benefits Reimbursement for salaries and benefits Allocation for commuter rail costs Highway project costs reimbursements Debt service funding related to highway projects for Western County and to loan agreements for Western County jurisdictions 91 Project equity contribution Administrative cost allocation Allocation for administration, planning and programming, commuter rail operating and station maintenance, and grade separation costs Allocation for Coachella Valley commuter rail costs Debt service related to loan agreements for Coachella Valley and Palo Verde Valley jurisdictions Reimbursement for highway costs Highway project costs reimbursements Cash subsidies available after debt service payment Share of Cash subsidy related to CVAG loan agreement Administrative cost allocation Allocation for commuter rail costs Allocation for Coachella Valley commuter rail costs Call box program augmentation of freeway service patrol operations 34 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations The following is a summary of the changes in long-term obligations for the year ended June 30, 2015: Sales tax revenue bonds: 2009 Bonds 2010 Bonds 2013 Bonds Toll revenue bonds: 2013 Bonds Total bonds payable Less: Sales tax revenue bonds discount Less: Toll revenue bonds discount Add: Sales tax revenue bonds premium Total bonds payable, net TIFIA loan MSHCP funding liability Remediation liability Capital lease Compensated absences Total long-term obligations Balance July 1, 2014 $ 154,300,000 150,000,000 462,200,000 180,122,129 946,622,129 Additions / Accretion (870,854) (2,366,738) 36,153,513 Reductions Balance Due Within June 30, 2015 One Year $ (7,400,000) $ 146,900,000 -- - 150,000,000 - 462,200,000 3,728,581 - 183,850,710 3,728,581 (7,400,000) 89,755 73,073 - (2,175,262) 979,538,050 18,000,000 1,576,406 72,011 630,797 $ 999,817,264 942,950,710 (781,099) (2,293,665) 33,978,251 2,175,262 9,816,446 $ 7,800,000 3,728,581 (9,412,434) 973,854,197 48,904,095 - 48,904,095 - (3,000,000) 15,000,000 - (1,315,580) 260,826 - (11,654) 60,357 149,175 (90,197) 689,775 $ 52,781,851 $ (13,829,865) $1,038,769,250 7,800,000 (85,743) (73,073) 3,000,000 260,826 14,176 317,279 $ 13,408,727 The Commission has pledged a portion of future sales tax revenues through maturities of the bonds to repay $759,100,000 in sales tax revenue bonds payable issued in October 2009 (2009 Bonds), November 2010 (2010 Bonds), and July 2013 (2013 Sales Tax Bonds) and outstanding at June 30, 2015 plus related interest. The bonds and commercial paper notes are payable solely from the 2009 Measure A sales tax revenues on a senior and subordinate lien basis, respectively. Annual principal and interest payments on the bonds and notes, after utilization of capitalized interest deposits for the 2013 Sales Tax Bonds through December 1, 2017, are expected to require less than 33% of 2009 Measure A revenues. For the current year, interest paid on the bonds and commercial paper notes was $45,900,072 and $0, respectively. Cash subsidies of $2,764,418 related to the bonds were received from the U.S. Treasury during the current year and were recorded as intergovemmental revenues. Additionally, the toll revenue bonds issued in July 2013 (2013 Toll Bonds) are secured by a senior lien on the trust estate, which consists primarily of toll revenues and account revenues less operating and maintenance expenses of the RCTC 91 Express Lanes, which are expected to open in July 2017. The Commission also executed a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan agreement for up to $421,054,409 in July 2013 secured on a subordinate basis to the 2013 Toll Bonds, except in the case of any bankruptcy related event, as defined in the toll indenture and TIFIA loan agreement, when the TIFIA loan automatically becomes a senior lien obligation. The TIFIA loan is evidenced by a toll revenue bond issued pursuant to the toll bond indentures; the amount outstanding under the TIFIA loan at June 30, 2015 is $48,904,095. Sales tax revenue bonds payable: Under the provisions of the 2009 Measure A, as amended by Measure K approved by the voters in November 2010, the Commission has the authority to issue bonds subject to a bond debt limitation of $975,000,000. The following is a summary of bonds issued and secured by 2009 Measure A revenues that are outstanding at June 30, 2015: 35 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued 2009 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A, B, and C: In October 2009, the Commission issued sales tax revenue bonds consisting of the $85,000,000 Series A, $65,000,000 Series B, and $35,000,000 Series C, for a total issuance of $185,000,000. A portion of the 2009 Bonds was used to current refund all, or $126,395,000, of the 2008 Sales Tax Revenue Bonds (2008 Bonds) and retire $53,716,000 of the outstanding commercial paper notes with the remaining proceeds used to fund a portion of the debt service reserve and pay costs of issuance for the 2009 Bonds. The 2009 Bonds mature in annual installments ranging from $4,000,000 to $13,700,000 on various dates through June 1, 2029 with variable interest rates set in connection with remarketing efforts on a weekly basis. The 2009 Bonds are integrated with the interest rate swaps that became effective in October 2009, thereby creating synthetic fixed rate debt. The 2009 Bonds are secured by Standby Bond Purchase Agreements (SBPAs) with The Bank of Tokyo - Mitsubishi UFJ, Ltd., acting through its New York Branch (Bank of Tokyo), which expire in March 2019. Under the SBPAs with Bank of Tokyo, if the 2009 Bonds are not successfully remarketed or repaid according to their terms or if the existing SBPAs are not renewed and the Commission does not replace the SBPAs or otherwise refinance the 2009 Bonds, Bank of Tokyo is required to purchase the 2009 Bonds. Any of the 2009 Bonds purchased by Bank of Tokyo constitute bank bonds that bear interest at the bank rate, which may not exceed the maximum rate of 18%. If the Commission does not reimburse Bank of Tokyo within 180 days following Bank of Tokyo's purchase of any 2009 Bonds or the expiration of the SBPAs, the Commission would be required to redeem the bank bonds over a period of five years. The 2009 Bonds are subject to purchase on the demand of the holder at a price equal to principal plus accrued interest on seven days' notice and delivery to the Commission's applicable remarketing agent. Stifel, Nicolaus & Company, as assigned by E.J. De La Rosa & Co., and Barclays Capital Inc., are the remarketing agents for the 2009 Bonds Series A and Series B and C, respectively. The remarketing agent is required to use its best efforts to sell the repurchased bonds at a price equal to 100% of the principal amount by adjusting the interest rate. The Commission is required to pay to Bank of Tokyo an annual commitment fee for the SBPAs on the outstanding principal amount of the 2009 Bonds plus 34 days of interest at an interest rate of 12%. The commitment fees paid to Bank of Tokyo were $485,410 in 2015. Additionally the Commission is required to pay the remarketing agents an annual fee on the outstanding principal amount of the bonds. The required reserve amount of $14,213,201 was released in its entirety for project purposes in October 2011 upon the effective date of the amendment of the prior SBPAs. Outstanding $146,900,000 In accordance with the bond maturity schedule and assuming the bonds are remarketed, annual debt service requirements to maturity for the 2009 Bonds payable, based on the variable interest rates at June 30, 2015 and excluding related interest rate swap payments, throughout the term of the bonds are as follows: Year Ending June 30 Principal Interest Total 2016 $ 7,800,000 $ 95,136 $ 7,895,136 2017 8,100,000 89,836 8,189,836 2018 8,500,000 84,605 8,584,605 2019 8,900,000 79,114 8,979,114 2020 9,300,000 73,565 9,373,565 2021-2025 52,900,000 271,657 53,171,657 2026-2029 51,400,000 84,766 51,484.766 $ 146,900,00D $ 778,679 $ 147,678,679 36 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued If the SBPAs with Bank of Tokyo are not renewed or replaced upon expiration in March 2019 and the Commission does not otherwise refinance the 2009 Bonds and the remarketing agent is unable to resell the bonds that are tendered for redemption, the annual debt service requirements for the succeeding fiscal years will be accelerated over a five-year term based on an assumed interest rate of 9.0%. 2010 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt) and Series B (Taxable Build America Bonds): In November 2010, the Commission issued sales tax revenue bonds consisting of the $37,630,000 Series A and $112,370,000 Series B, for a total issuance of $150,000,000. For the Series B Build America Bonds (BABs), $44,800,000 was designated as recovery zone economic development bonds (RZEDBs). A portion of the 2010 Bonds was used to retire $103,284,000 of the outstanding commercial paper notes with the remaining proceeds used to fund 2009 Measure A Western County and Coachella Valley capital projects and pay costs of issuance for the 2010 Bonds. The 2010 Bonds Series A mature in annual installments ranging from $12,105,000 to $12,815,000 on various dates from June 1, 2030 through June 1, 2032 at an interest rate of 5.00%, and the 2010 Bonds Series B mature in annual installments ranging from $530,000 to $17,980,000 on various dates from June 1, 2032 to June 1, 2039 at an interest rate of 6.807%. The Commission expects, but is not guaranteed, to receive a cash subsidy from the U.S. Treasury equal to 35% of the interest payable on the BABs or 45% of the interest payable on the Series B bonds additionally designated as RZEDBs. Outstanding $ 150,000,000 During 2015 the cash subsidy related to the 2010 Bonds that was received from the U.S. Treasury was approximately $231,600 less than the amount anticipated. The subsidy reduction resulted from federal sequestration cuts of 7.3% for federal fiscal year ending September 30, 2015. The federal sequestration cuts may continue for an unknown duration. In accordance with the bond maturity schedule, and assuming no subsidy reduction, annual debt service requirements to maturity for the 2010 Bonds payable throughout the term of the bonds are as follows: Year Ending June 30 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2039 Principal — $ 12,105,000 69,970,000 67,925,000 $ 150,000,000 $ Interest 9,530,500 $ 9,530,500 9,530,500 9,530,500 9,530,500 47,652,600 47,652,600 37,150,800 11,788,700 191,897,200 $ Total 9,530,500 9,530,500 9,530,500 9,530,500 9,530,500 47,652,600 59,757,600 107,120,800 79,713,700 341,897,200 Subsidy Total, net (2,982,100) (2,982,100) (2,982,100) (2,982,100) (2,982,100) (14,910,600) (14,910,600) (13,856,600) (5,098,800) (63,687,100) 2013 Sales Tax Revenue Bonds (Limited Tax Bonds), Series A (Tax-exempt): In July 2013, the Commission issued $462,200,000 principal amount of serial bonds at a premium of $38,328,775 to retire all, or $60,000,000, of the outstanding principal amount of commercial paper notes, fund a portion of the 91 Project costs, pay capitalized interest during construction, and pay cost of issuance. The $286,065,000 of serial bonds mature in annual installments ranging from $12,090,000 to $24,450,000 on various dates from June 1, 2018 through June 1, 2033 at interest rates ranging from 5.00% to 5.25%. The $176,135,000 of term bonds is due on June 1, 2039 with annual sinking fund payments ranging from $25,735,000 to $33,235,000 on June 1, 2034 through June 1, 2039 at an interest rate of 5.25%. $ 6,548,400 6,548,400 6,548,400 6,548,400 6,548,400 32,742,000 44,847,000 93,264,200 74,614,900 $ 278,210,100 Outstanding $ 462,200,000 37 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Sales Tax Bonds payable throughout the term of the bonds are as follows: Year Ending June 30 Principal 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2039 $ Interest Total 22,960,000 12,090,000 12,690,000 73,675,000 94,900,000 122,560,000 123,325,000 $ 24,041,100 24,041,100 24,041,100 22,893,100 22,288,600 101,227,200 80,000,800 52,333,000 16,600,100 $ 24,041,100 24,041,100 47,001,100 34,983,100 34,978,600 174,902,200 174,900,800 174,893,000 139,925,100 $ 462,200,000 $ 367,466,100 $ 829,666,100 Toll revenue bonds payable: In July 2010, the Commission authorized the issuance and sale of not to exceed $900 million of toll revenue bonds related to the 91 Project. 2013 Toll Revenue Bonds, Series A (Current Interest Obligation): In July 2013, the Commission issued $123,825,000 principal amount of serial current interest bonds (CIBs) at a discount of $2,433,315 to fund a portion of the 91 Project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CIBs consist of a serial bond maturing on June 1, 2044 in the amount of $39,315,000 at an interest rate of 5.75% and a term bond due on June 1, 2048 in the amount of $84,510,000 with annual sinking funds payments of $42,255,000 on June 1, 2047 and June 1, 2048 at an interest rate of 5.75%. Outstanding $ 123,825,000 In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CIBs payable throughout the term of the bonds are as follows: Year Ending June 30 2016 2017 2018 2019 2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 2046-2048 Principal Interest Total $ 39,315,000 84,510,000 $ 7,119,900 7,119,900 7,119,900 7,119,900 7,119,900 35,599,700 35,599,700 35,599,700 35,599,700 33,338,900 12,148,500 $ 7,119,900 7,119,900 7,119,900 7,119,900 7,119,900 35,599,700 35,599,700 35,599,700 35,599,700 72,653,900 96,658,500 $ 123,825,000 $ 223,485,700 $ 347,310,700 38 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued 2013 Toll Revenue Bonds, Series A (Capital Appreciation Obligation): In July 2013, the Commission issued $52,829,602 principal amount of serial capital appreciation bonds (CABs) to fund a portion of the 91 Project, pay capitalized interest during construction, fund a debt service reserve fund, fund an initial amount for an Operations and Maintenance Fund, and pay costs of issuance. The CABs will not pay current interest as interest will be compounded commencing December 2013 semiannually and paid at maturity. Therefore, the CABs will increase in value, or accrete, by the accumulation of such compounded interest from its initial principal amount to the maturity value in installments ranging from $3,440,000 to $34,220,000 on various dates from June 1, 2022 through June 1, 2043. Interest rates and yield to maturity range from 5.30% to 7.15%. During 2015, the accretion amount was $3,728,581. Outstanding $ 60,025,710 In accordance with the bond maturity schedule, annual debt service requirements to maturity for the 2013 Toll Bonds CABs payable throughout the term of the bonds are as follows: Year Ending June 30 Principal 2022-2025 $ 13,598,100 2026-2030 17,069,900 2031-2035 10,369,900 2036-2040 2041-2043 11,791,700 $ 52,829,600 Accreted Interest Total $ 11,351,900 27,500,100 28,340,100 $ 24,950,000 44,570,000 38,710,000 78,458,300 90,250,000 _ $ 145,650,400 $ 198,480,000 TIFIA Loan Agreement: In July 2013, the Commission executed a TIFIA loan of up to $421,054,409, which proceeds, when drawn upon, will finance a portion of the costs for the 91 Project. During construction and for a period of up to five years following substantial completion, interest is compounded and added to the initial TIFIA loan. The TIFIA loan requires mandatory debt service payments at a minimum and scheduled debt service payments to the extent additional funds are available. TIFIA debt service payments are expected to commence on December 1, 2021, which is five years after substantial completion of the 91 Project, through June 1, 2051. The interest rate of the TIFIA loan is 3.47%. During 2015, $48,904,095 was drawn on the TIFIA loan. $ 48,904,095 The projected TIFIA loan amortization schedule has been revised based on actual draws through June 30, 2015 and projected draws thereafter during construction. Annual debt service requirements to maturity of the TIFIA loan throughout the term of the loan will be determined upon the final TIFIA loan draw. Pursuant to the toll indenture and TIFIA loan agreement, the Commission will deposit with the trustee $136,451,515 into an equity account for payment of 91 Project costs. Such deposits are due annually in amounts ranging from $29,501,918 to $34,983,199 through 2017. The Commission expects to make such deposits or direct payments from 2009 Measure A revenues; the fiscal 2015 contribution requirement of $32,793,399 was satisfied with the transfer of Measure A Western County Special Revenue funds. These annual equity contribution payments occur during the period in which interest is capitalized on the 2013 Sales Tax Bonds. In connection with the issuance of the 2013 Toll Bonds consisting of the CIBs and CABs, a debt service reserve of $17,665,460 and an Operations and Maintenance Fund of $3,137,666 were established. Additionally, the toll indenture and TIFIA loan agreement require the Commission to establish a subordinate obligations reserve fund of $20,000,000 with Measure A sales tax revenues no later than July 1, 2019, to the extent that the proceeds from the sales of excess right of way acquired by the Commission in connection with the 91 Project are insufficient. 39 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued Commercial paper notes payable: In February 2005, the Commission authorized the issuance of tax-exempt commercial paper notes in an amount not to exceed $200,000,000 for the primary purpose of financing right of way and mitigation land acquisition and project development costs of capital projects under the 2009 Measure A. The Commission reduced the authorization to $60,000,000 in September 2013. As of June 30, 2015, there were no outstanding commercial paper notes. The source of revenue to repay the commercial paper notes and any subsequent long-term debt refinancing is the 2009 Measure A sales tax. Interest is payable on the respective maturity dates of the commercial paper notes, which is up to 270 days from the date of issuance. The maximum allowable interest rate on the commercial paper notes is 12%. As a requirement for the issuance of the commercial paper notes, the Commission entered into a $60,750,000 irrevocable direct draw letter of credit and reimbursement agreement with State Street Bank and Trust Company (State Street) as credit and liquidity support for the commercial paper notes through October 2017. The commitment fees paid to State Street were $89,100 in 2015. Funds are drawn under the letter of credit to pay debt service on the commercial paper notes, and the Commission is required to reimburse the bank for such drawings. Amounts drawn on the letter of credit and not reimbursed within 30 days are not due until five years after the date of such draw. Accordingly, the commercial paper notes are classified as long-term liabilities in the Commission's govemment-wide financial statements. There were no unreimbursed draws by the Commission on the remaining letter of credit during the year ended June 30, 2015, nor were there any amounts outstanding under the remaining letter of credit agreement at June 30, 2015. The Commission's commercial paper program functions similar to bond anticipation notes for reporting purposes, as the commercial paper notes are issued and retired with long-term debt issuances. Commercial paper notes are classified as long- term debt as long as the Commission's letter of credit facility extends at least one year past its fiscal year end; otherwise, the commercial paper notes are classified as a fund liability. Capital lease obligation: The Commission has entered into a lease agreement for financing the acquisition of office equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments. The office equipment book value of $78,606 is recorded as a capital asset in the govemmental activities. Total future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2015 are as follows: Year Ending June 30 _ Total 2016 $ 24,857 2017 24,857 2018 24,857 2019 8,286 Total minimum lease payments 82,857 Less amount representing interest Present value of minimum lease payments (22,500) $ 60,357 Interest rate swaps: As a means to achieve a greater level of interest rate stability, specifically rising interest rates that would negatively impact cash flows, the Commission entered into two forward -starting interest rate swaps in August 2006 for a total original notional amount of $185,000,000 whereby it swapped obligations to pay fixed rates for those that pay a floating rate. The swaps are part of a synthetic fixed rate financing with the Commission's 2009 Bonds. The floating rate receipts under the swaps correspond to the floating rate payments on the 2009 Bonds. The fixed rate payment remains for the Commission as its primary interest obligation. 40 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued The counterparty for the first swap ($100,000,000 original notional amount) is Bank of America, N.A. (Bank of America), and the counterparty for the second swap ($85,000,000 original notional amount) is Deutsche Bank AG (Deutsche Bank). Under the swap agreements which became effective on October 1, 2009, the Commission will pay Bank of America and Deutsche Bank (Counterparties) a fixed rate of 3.679% and 3.206%, respectively, for twenty years, the term of the 2009 Bonds; the Counterparties will pay the Commission a floating rate equal to 67% of the one -month London Interbank Offer Rate (LIBOR). The Commission's interest rate swaps are derivative instruments that hedge identified financial risks. If the derivative instrument is determined to be effective in reducing the identified exposure, hedge accounting provides that changes in the fair value of the hedging instrument —in this instance, the interest rate swap —be reported as either deferred inflows or deferred outflows in a govemment's statement of net position. To evaluate the effectiveness of the swaps, the Synthetic Instrument Method prescribed by Govemmental Accounting Standards Board (GASB) Statement No. 53, Accounting and Financial Reporting for Derivatives, was employed. The resulting analysis indicates the swaps are effective as hedging instruments. The fair value or marked -to - market value of the Bank of America and Deutsche Bank swaps as of June 30, 2015 are ($13,037,236) and ($8,458,575), respectively. This is the amount the Commission would owe as of this date should the swaps be terminated. The terms and fair values (liabilities) of the outstanding swaps as of June 30, 2015 are as follows: Associated Notional Effective Fixed Rate Variable Rate Fair Value Swap Debt Issue Counterparty Amount Date to be Paid to be Received (Liability) Termination Date 2009 Bonds Bank of America $ 79,400,000 10/01/2009 3.679% 67% of LIBOR $ (13,037,236) 06/01/2029 2009 Bonds Deutsche Bank 67,500,000 10/01/2009 3.206% 67% of LIBOR (8,458,575) 06/01/2029 $ 146,900,000 $ (21,495,811) The fair value (liabilities) of the outstanding swaps at June 30, 2014 was ($21,837,570), resulting in a decrease in the liabilities of $341,759 during the year ended June 30, 2015. The interest rate swaps are, among other things, subject to credit, interest rate, basis, and termination risk. Credit risk: The following table compares the counterparty credit ratings at June 30, 2015 against their threshold amounts and credit ratings for termination: Bank of America Moody's S&P Counterparty Senior Debt Rating Al A Threshold Amount $15,000,000 $15,000,000 Threshold for Termination Baal BBB+ Deutsche Bank Moody's S&P Counterparty Senior Debt Rating A3 BBB+ Threshold Amount $10,000,000 $15,000,000 Threshold for Termination Baal BBB+ Under the agreements, a swap termination event may occur if the Counterparties' credit ratings fall to the threshold level and, after 30 days' notice, collateral in the form of U.S. treasury and certain federal agency securities as required by the agreements is not delivered in favor of the Commission. Interest rate risk: The Commission is exposed to interest rate risk on its pay fixed, receive variable interest rate swaps. As LIBOR decreases, the Commission's net payments on the swaps increase. It is expected that this is offset partly by a decrease in payments on the 2009 Bonds. 41 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 6. Long-term Obligations, Continued Basis risk: The Commission is exposed to basis risk on the swaps because the variable rate payments received by the Commission are based on an index other than interest rates the Commission pays on hedged variable rate debt. For the year ended June 30, 2015, the Commission's 2009 Bonds, Series A, which are hedged by the Deutsche Bank swap, and 2009 Bonds, Series B and C, which are hedged by the Bank of America swap, had weighted average variable rates of 0.0392% and 0.0409%, respectively. Over the same period, the weighted average of 67% of one -month LIBOR was 0.116%, an approximate 7.7% basis point gain and 7.5 basis point gain for the Commission related to the Deutsche Bank and Bank of America swaps, respectively. Termination risk: The swaps may be terminated by the Commission or its Counterparties if the other party fails to perform under the terms of the contract or at the Commission's option to terminate the transaction. If, at the time of termination, the swap is in a liability position, the Commission would be obligated to pay the counterparty the liability position. Swap payments and associated debt: Using a variable rate of 0.07% for the 2009 Bonds Series A, 0.06% for the 2009 Bonds Series B, and 0.06% for the 2009 Bonds Series C as of June 30, 2015, debt service requirements of the 2009 Bonds and the swap payments, assuming current interest rates remain the same for their term, are as follows: Year Ending _ June 30 2016 2017 2018 2019 2020 2021-2025 2026-2029 Variable Rate Debt Principal 7,800,000 8,100,000 8,500,000 8,900,000 9,300,000 52,900,000 51,400,000 Interest 95,136 89,836 84,605 79,114 73,565 271,657 84,766 Total 7,895,136 8,189,836 8,584,605 8,979,114 9,373,565 53,171,657 51,484,766 $ 146,900,000 $ 778,679 $ 147,678,679 Interest Rate Swap, Net 4,877,595 4,617,232 4,345,927 4,061,359 3,763,133 13,881,166 4,240,702 $ 39,787,114 Total Fixed Debt Service 12,772,731 12,807,068 12,930,532 13,040,473 13,136,698 67,052,823 55,725,468 $ 187,465,793 As rates vary, the variable interest payments and net interest rate swap payments will vary. Arbitrage rebate: The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax- exempt bonds and commercial paper notes after August 31, 1986. In general, arbitrage regulations deal with the investment of all tax-exempt bond and commercial paper note proceeds at an interest yield greater than the interest yield paid to bondholders or noteholders. Failure to follow the arbitrage regulations could result in all interest paid to bondholders or noteholders retroactively rendered taxable. In accordance with the arbitrage regulations, if excess eamings were calculated, 90% of the amount calculated would be due to the Internal Revenue Service at the end of each five-year period. The remaining 10% would be recorded as a liability and paid after all bonds had been redeemed. During the current year, the Commission performed calculations of excess investment eamings on all bond and commercial paper financings. There was no arbitrage liability at June 30, 2015, MSHCP funding liability: Under the 2009 Measure A, the Commission is required to provide $153,000,000 of Measure A funding under the Western County MSHCP. Through the current year, the Commission has fulfilled approximately $132,000,000 of the funding requirement. In March 2012, the Commission authorized a $24,000,000 commitment to the Westem Riverside County Regional Conservation Authority (RCA) to provide funding for its remaining obligation to the MSHCP for its covered activities. Under the terms of the agreement, the commitment will be paid over eight years at $3,000,000 per year through December 2019. However, if, within the first two years of the agreement, the RCA received a federal loan guarantee related to the MSHCP or its revenues have retumed to 2005 levels, the Commission may modify its commitment. The Commission did not modify its commitment within the first two year period, and, accordingly, the remaining liability of $15,000,000 is recorded as a liability in the govemment-wide financial statements. 42 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 ' Note 6. Long-term Obligations, Continued Remediation liability: In connection with the acquisition of real property in December 2013, the Commission is responsible for the cleanup of hazardous substances at the site under a voluntary cleanup agreement with the California Department of Toxic Substances Control. The Commission in consultation with its consultants calculates expected outlays related to this hazardous substance remediation to approximate $1,642,000, of which $1,315,580 was expended during FY 2014/15. The remediation liability balance at June 30, 2015 of $260,826 is expected to be fully expended in FY 2015/16 and is recorded as a liability in the government -wide financial statements. The amount of the estimated remediation liability assumes there will be no major increase in the cost of providing these cleanup services. There are no expected recoveries to offset the remediation costs. Note 7. Net Position and Fund Balances Net position: Net investment in capital assets of $509,106,481, as reported on the govemment-wide statement of net position, represents capital assets, net of accumulated depreciation, of $709,582,493 less the related debt of $200,476,012. The related debt includes the portion of the sales tax revenue and toll revenue bonds that was used for the development of tolled express lane capital assets. Additionally, the government -wide statement of net position reports $578,207,942 of restricted net position, of which $310,846,900 is restricted by enabling legislation. As of June 30, 2015, the beginning net position, as previously reported, was restated due to implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — An Amendment of GASB Statement No. 68. As a result, the Commission decreased the govemmental activities' beginning net position to reflect the prior period costs related to the implementation of the net pension liability. Net position, as originally stated, June_ 30, 2014 $553,854,373 Fund balances Change ($5,475,607) Net position, as restated, June 30, 2014 $548,378,766 Measure A: Measure A sales tax revenues are allocated to the three defined geographic areas of Riverside County, consisting of Westem County, Coachella Valley, and Palo Verde Valley in proportion to the funds generated within those areas. Revenues must then be allocated to the programs of the geographic areas according to percentages as defined by Measure A and are legally restricted for applicable program expenditures. Bond and commercial paper note proceeds are allocated to the geographic areas based on the estimated uses. Accordingly, the related fund balances are classified as follows: Highways: Funds are to be used for project costs including engineering, right of way acquisitions, and construction of the Westem County highways and Coachella Valley highways and regional arterials. Funds for new corridors are to be used for environmental clearance, right of way acquisition, and construction of four new Westem County transportation corridors identified through CETAP. In order to attract commercial and industrial development and jobs in the Western County, funds are expended to create an infrastructure improvement bank to improve and construct interchanges, provide public transit linkages or stations, and make other improvements to the transportation system. Funds are also provided to support bond financing costs. These program funds are intended to supplement existing federal, state, and local resources. Coachella Valley highway and regional arterial funds are matched by TUMF revenues generated in the Coachella Valley. Accordingly, funds for highways, Coachella Valley regional arterials, new corridors, economic development, and bond financing are reflected as restricted for these specific purposes as stipulated by the 1989 Measure A and 2009 Measure A. Commuter rail: Commuter rail projects anticipate the use of existing rail lines, and 1989 Measure A funds are restricted for costs related to planning, capital improvements, right of way purchase, and/or use rights agreements. Funds for rail operations and to match federal funds for capital are restricted as stipulated by the 2009 Measure A Western County public transit program. Certain state revenues are restricted for the planning and development of the new Coachella Valley/San Gorgonio Pass corridor rail service. 43 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 44 Note 7. Net Position and Fund Balances, Continued Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system, as defined by WRCOG. Local streets and roads: Funds to be expended by local jurisdictions for the construction, repair, and maintenance of local streets and roads are reflected as restricted as stipulated by Measure A. The County and local cities are required to supplement those expenditures with other previously dedicated revenue sources to maintain road improvements. Monies are disbursed to the jurisdictions which comply with the requirements to maintain the same level of funding for streets and roads as existed prior to the passage of Measure A and participate in TUMF (as applicable in the Western County and Coachella Valley areas) and the MSHCP in Western County and which annually submit a five-year capital improvement plan. Commuter assistance and transit: Funds for public transit are used to promote and subsidize commuter assistance programs such as ridesharing and telecommuting and specialized transportation to guarantee reduced transit fares, expand existing transit services, and implement new transit services for seniors and persons with disabilities. These funds are restricted as stipulated by the 1989 Measure A and 2009 Measure A. Funds for intercity bus services in Western County and bus replacement and more frequent service in the Coachella Valley are restricted as stipulated by the 2009 Measure A. Debt service: Certain bond proceeds that have been used to make required sinking fund payments in the Debt Service fund as required by the bond agreements are classified as restricted. Amounts held by the trustee equal to the maximum annual debt service are recorded in the Debt Service fund as restricted. Transportation Development Act: Restricted fund balance for the Local Transportation Fund represents the apportionments related to transit programs by geographic area, bicycle and pedestrian facilities, and planning and programming services and unapportioned revenues. Restricted fund balance for the State Transit Assistance represents the apportionments for transit by geographic area. The TDA restrictions at June 30, 2015 are as follows: Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 45 Note 7. Net Position and Fund Balances, Continued Local Transportation Fund State Transit Assistance Total Bicycle and pedestrian facilities $ 4,618,559 $ – $ 4,618,559 Transit and specialized transportation Western County: Bus transit: City of Banning $ – $ 215,223 $ 215,223 City of Beaumont – 1,727,165 1,727,165 City of Corona – 723,942 723,942 City of Riverside – 357,409 357,409 Riverside Transit Agency 5,001,511 3,237,808 8,239,319 Apportioned and unallocated 54,683,186 27,207,657 81,890,843 Commuter rail: Commission 2,000,000 2,583,595 4,583,595 Apportioned and unallocated 23,286,708 11,906,364 35,193,072 Total Western County 84,971,405 47,959,163 132,930,568 Coachella Valley: SunLine Transit Agency 412,575 9,956,371 10,368,946 Apportioned and unallocated 12,778,653 2,617,783 15,396,436 Total Coachella Valley 13,191,228 12,574,154 25,765,382 Palo Verde Valley: Palo Verde Valley Transit Agency – 19,056 19,056 Apportioned and unallocated for transit and local streets and roads 1,017,460 28,380 1,045,840 Total Palo Verde Valley 1,017,460 47,436 1,064,896 Unapportioned funds 8,304,622 – 8,304,622 Total transit and specialized transportation $ 112,103,274 $ 60,580,753 $ 172,684,027 Commuter rail: Restricted fund balance in the General fund represents TDA monies to be used for commuter rail operations and capital. Transportation Uniform Mitigation Fee: TUMF revenues to be received by the Commission are to be used for new CETAP corridors and the regional arterial system in Western County and are restricted as follows: CETAP: Funds for the development of new transportation corridors are used to provide congestion relief and mobility within the County and between the County and its neighboring Orange and San Bernardino counties. Funds will be matched by revenues of $370 million generated from the 2009 Measure A. Regional arterials: Funds for regional arterials are used to implement the planned Western County regional arterial system. Funds will be matched by revenues of $300 million generated from the 2009 Measure A. Prepaid amounts: Prepaid amounts are reported as nonspendable fund balance as they are in nonspendable form. Motorist assistance: Funds in the Service Authority for Freeway Emergencies and Freeway Service Patrol Special Revenue funds, which are reported as nonmajor governmental funds, of $6,714,152 and $1,273,934, respectively, to assist motorists on County roads are restricted as stipulated by the State. General government: Funds allocated by Measure A, TUMF, LTF, and motorist assistance programs to the General Fund have been assigned by the Commission for general government administration. Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 8. Commitments and Contingencies Operating lease: The Commission has entered into an operating lease agreement for office facilities. The term of the lease, as amended, is for a period of 15 years expiring in October 2017 and may be extended for one additional five-year term. Rental expenditures for the fiscal year ended June 30, 2015 were approximately $378,721. Year Ending June 30 Amount 2016 385,375 2017 393,085 2018 126,800 Total minimum rental commitment $ 905,260 Real property and project agreements: The Commission has entered into other agreements in the ordinary course of business with companies and other govemmental agencies for the acquisition of real property as well as the engineering and construction of certain highway and commuter rail projects. These agreements, which are significant, are funded with available and future revenues and debt proceeds. In November 2012, the Commission entered into an agreement with the BNSF Railway Company (BNSF) for the acquisition and use of a rail easement in connection with a rail project for an amount of $25,000,000. Under the terms of the agreement, the Commission has paid $24,999,999 through 2015. The remaining balance of $1 is due at various dates through the earlier of the closing date, which may be extended to 90 days prior to the scheduled commencement of rail service on the rail project, which is projected to occur by December 2015. Furthermore, the agreement may be terminated by the Commission if the Commission is not prepared to proceed to closing. Should the closing not occur, BNSF is required to return up to $24,349,999 of payments received through closing. Litigation: Certain claims involving disputed construction costs and property acquisition costs, including goodwill claims, have arisen in the ordinary course of business. Additionally, the Commission is a defendant in lawsuits. Although the outcome of these matters is not presently determinable, management does not expect that the resolution of these matters will have a material adverse impact on the financial condition of the Commission. Note 9. Joint Agreements Joint ventures: The Commission is one of five members of the SCRRA, an independent joint powers authority created in June 1992. The SCRRA's board consists of one member from the Ventura County Transportation Commission; two each from the Orange County Transportation Authority (OCTA), the San Bernardino Associated Govemments, and the Commission; and four members from the Los Angeles County Metropolitan Transportation Authority. The SCRRA is responsible for implementing and operating a regional commuter rail system (Metrolink) in five southem Califomia counties. As a member of SCRRA, the Commission makes capital and operating contributions for its pro rata share of rail lines servicing the County. The Commission expended $9,246,727 during 2015 for its share of Metrolink operating costs. As of June 30, 2015, cumulative capital contributions were $42,895,204.Other funds for rail service are contributed to the SCRRA by the State from state rail bonds on behalf of the Commission. Separate financial statements are prepared by and available from the SCRRA, which is located at One Gateway Plaza, 12th Floor, Los Angeles, Califomia 90012. In May 2013 the Commission became a full voting member of the Los Angeles —San Diego —San Luis Obispo (LOSSAN) Rail Corridor Agency with the intent to have greater involvement in regional rail issues because of its legal ownership rights regarding passenger rail service between Fullerton and Los Angeles. The LOSSAN Rail Corridor Agency is a locally govemed joint powers authority comprised of 13 agencies created to oversee the intercity passenger rail service in the travel corridor between San Diego and San Luis Obispo County. The Commission's share of administration costs is subject to future negotiations; however, during 2015 the Commission contributed $67,724 for administration efforts. 46 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 9. Joint Agreements, Continued Cooperative agreement: In May 2006 the Commission entered into a cooperative agreement, Riverside Orange Corridor Authority, with OCTA and the Transportation Corridor Agencies to jointly exercise the common powers of the parties to manage geotechnical studies regarding the Riverside Orange Corridor, which have been completed. The Commission was the recipient and administering entity of federal and state funds as necessary to accomplish this work, and the three agencies shared in meeting the local agency matching requirements. As of June 30, 2015, the Commission was not required to make any contributions. Note 10. Employees' Pension Plans General Information about the CaIPERS Pension Plan: The Commission contracts with the CaIPERS to provide its employees retirement as well as death and retirement disability benefits, which are paid by the CaIPERS under a cost sharing multiple -employer plan. CaIPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be obtained from its executive office located at 400 P Street, Sacramento, California 95814, or by visiting the PERS website at www.calpers.ca.gov. All permanent Commission employees are eligible to participate in the Miscellaneous Employee Pension Plan, cost -sharing multiple employer defined benefit pension plan administered by CaIPERS. Benefit provisions under the Plan are established by State statute and Commission resolution. Benefits Provided — CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Employees hired prior to January 1, 2013 and attaining the age of 55 with five years of credited California service (service) are eligible for normal retirement and are entitled to a monthly benefit of 2.7% of their final compensation for each year of service. Final compensation is defined as the highest annual salary eamed. Retirement may begin at age 50 with a reduced benefit rate. The plan also credits employees for unused sick leave. Employees hired on or after January 1, 2013 who are not "classic" members and attaining the age of 62 with five years of credited service are eligible for normal retirement and are entitled to a monthly benefit of 2% of their three-year final compensation for each year of service. Retirement may begin at age 52 with a reduced benefit rate. Upon separation from the plan prior to retirement, members' accumulated contributions are refundable with interest credited through the date of separation. All members are eligible for non - duty disability benefits after 10 years of service. The pre -retirement death benefit is one of the following: the 1957 Survivor Benefit — level 3 or the Optional Settlement 2W Death Benefit. The post -retirement death benefit is one of the following: lump sum or survivor allowance. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Commission pays the employee paid member contribution (EPMC) of 2% of regular eamings. The Commission is required to contribute the remaining amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 24.822% for the fiscal year ended June 30, 2015. In May 2013, the Commission approved the implementation of employees' cost sharing of EPMC phased in over a three-year period with 3% beginning in July 2013, 6% in July 2014 and 8% in July 2015. The EPMC paid by the Commission will be eliminated in FY 2015/16. 47 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 10. Employees' Pension Plans, Continued The Plan provisions and benefits in effect at June 30, 2015, are summarized as follows: Miscellaneous Hire date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required Commission contribution rates Prior to January 1, 2013 2.7% @ 55 5 years of service Monthly for life 50 — 55 2.0% to 2.7% 8% 24.822% On or after January 1, 2013 2% @ 62 5 years of service Monthly for life 52 — 67 1.0% to 2.0% 7.25% 7.15% Contributions — Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits eamed by employees during the year, with an additional amount to finance any unfunded accrued liability. The Commission is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2015, the contributions recognized as part of pension expense for the Plan was as follows: Contributions — Commission Contributions — employee (paid by Commission) Contributions — employee Miscellaneous $ 1,006,940 118,377 283,198 Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions: As of June 30, 2015, the Commission reported a net pension liability for its proportionate shares of the net pension liability of the Plan as follows: Proportionate Share of Net Pension Liability Miscellaneous $ 5,325,565 The Commission's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2014, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The Commission's proportion of the net pension liability was based on a projection of the Commission's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The Commission's proportionate share of the net pension liability for the Plan as of June 30, 2013 and 2014 are as follows: Proportion — June 30, 2013 Proportion — June 30, 2014 Change — Increase (Decrease) Miscellaneous 0.2038% 0.21548% (0.01168%) For the year ended June 30, 2015, the Commission recognized pension expense of $852,390. At June 30, 2015, the Commission reported deferred outflows of resources and deferred inflows or resources related to pensions from the following sources: 48 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 10. Employees' Pension Plans, Continued Deferred Outflows of Deferred Inflows of Resources Resources Pension contributions subsequent to measurement date $ 1,125,317 $ Differences between actual and expected experience Changes in assumptions Change in Commission's proportion and differences between contributions and the proportionate share of contributions Net differences between projected and actual eamings on plan investments — 1,507,143 Total 504,712 $ 1,630,029 $ 1,507,143 The $1,125,317 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts reported as deferred outflows of resources and deferred (inflows) of resources related to pensions will be recognized as pension expense as follows: Year Ended June 30 2016 2017 2018 2019 ($217,315) (217,315) (239,510) (328,291) Actuarial Assumptions — The total pension liability in the June 30, 2013 actuarial valuation were determined using the following actuarial assumptions: Valuation Date Measurement Date Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Projected Salary Increase Investment Rate of Retum Mortality The underlying mortality assumptions and all other the results of a January 2014 actuarial experience can be found on the CaIPERS website. Miscellaneous June 30, 2013 June 30, 2014 Entry -Age Normal Cost Method 7.50% 2.75% Varies by entry age and service 7.50% net of pension plan investment and administrative expenses, includes inflation Derived using CaIPERS' membership data for all funds actuarial assumptions used in the June 30, 2013 valuation were based on study for the period 1997 to 2011. Further details of the experience study Discount Rate — The discount rate used to measure the total pension liability was 7.50% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.50% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected rate of 7.50% will be applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report that can be obtained from the CaIPERS website. 49 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 10. Employees' Pension Plans, Continued According to GASB Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50% investment retum assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment retum excluding administrative expenses would have been 7.65%. Using this lower discount rate has resulted in slightly higher total pension liability and net pension liability. CaIPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require CaIPERS Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB Statement No. 68 calculations through at least FY 2017/18. CaIPERS will continue to check the materiality of the difference in calculation until such time as it has changed its methodology. The long-term expected rate of retum on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market retum expectations as well as the expected pension fund cash flows. Using historical retums of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal retums for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of retum was set by calculating the single equivalent expected rate that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of retum by asset class. The rate of retum was calculated using the capital market assumptions applied to determine the discount rate as asset allocation. These rates of retum are net of administrative expenses. Asset Class New Strategic Real Return Real Return Allocation Years 1-10 (a) Years 11+ (b) Global Equity 47.0% 5.25% 5.71 % Global Fixed Income 19.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 12.0% 6.83% 6.95% Real Estate 11.0% 4.50% 5.13% Infrastructure and Forestland 3.0% 4.50% 5.09% Liquidity 2.0% (0.55%) (1.05%) Total 100.0% (a) An expected inflation of 2.5% used for this period. (b ) An expected inflation rate of 3.0% used for this period. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate — The following presents the Commission's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Commission's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 % below or 1 % higher than the current rate: 50 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 10. Employees' Pension Plans, Continued 1 % Decrease Net Pension Liability Current Discount Rate Net Pension Liability 1% Increase Net Pension Liability Miscellaneous 6.50% $8,568,268 7.50% $5,325,565 8.50% $2,634,429 Pension Plan Fiduciary Net Position — Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports. Payable to the Pension Plan — At June 30, 2015, the Commission reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. 401(a) plan: The Commission offers its employees a 401(a) single -employer defined contribution plan referred to as the Money Purchase Plan & Trust (Plan), which covers all permanent full-time employees. Employees are fully vested in the Plan after five years. The Plan, which is administered by the International City/County Management Association (ICMA), requires the Commission to make a contribution of 7.5% of the employees' eamings for the Plan year. Fiduciary responsibility and reporting of the Plan assets rests with ICMA. The Commission has the authority to amend the contribution requirements. Total payroll for covered employees for the current year was $4,792,270. The Commission's contributions to the Plan were $359,521 for the year ended June 30, 2015. Note 11.Other Postemployment Benefits (OPEB) Plan information: Per Resolution of the Board, the Commission provides postretirement health benefits for eligible retirees and their dependents at retirement. For employees hired on or after January 1, 2007, retirees must have a minimum of 10 years of PERS service and no less than five years of Commission service in order to receive postretirement health benefits in accordance with PERS as per Government Code Section 22893. For employees hired prior to January 1, 2007, retirees are not required to meet the eligibility criteria and may receive postretirement health benefits at the monthly health benefit rate paid for active employees, which is currently at $600. The Commission's contributions toward premiums for retiree health insurance are coordinated with Medicare and other benefits provided by federal and state law, when available, to the extent it reduces the cost of insurance premiums. In June 2007 prior to the adoption of GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, the Commission adopted a resolution for an election of the Commission to prefund postretirement health benefits through the Califomia Employers' Retiree Benefit Trust (CERBT), an agent multiple - employer defined benefit health care plan administered by PERS. The System accepted the Commission's application to participate in the CERBT in September 2007. Copies of the CERBT Prefunding Plan annual financial report may be obtained from its executive office or its website. 51 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 11.Other Postemployment Benefits (OPEB), Continued Plan funding policy: The contribution requirements of plan members are established and may be amended by the Commission. Currently, OPEB contributions are not required from plan members. The Commission has adopted a policy to fund 100% of the future annual required contribution (ARC). The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the annual normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess) over a 20-year period. The Commission is required to contribute the amounts necessary to fund the benefits of its members, using the actuarially determined rate, which was 9.2% for the fiscal year ended June 30, 2015. Annual OPEB cost: For 2015, the Commission's OPEB cost of $390,000 was equal to the ARC. The Commission's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015 and the preceding two years were as follows: Fiscal Year Ended Percentage of OPEB ARC June 30 OPEB ARC Contributed Net OPEB Obligation 2015 $ 390,000 100% $ — 2014 378,000 100% — 2013 409,000 100% - Funded status and funding progress: The funded status of the plan as of June 30, 2013, based on the June 30, 2013 actuarial valuation (most current valuation available), was as follows: Actuarial accrued liability (AAL) $ 4,047,000 Actuarial value of plan assets 3,335,000 Unfunded actuarial accrued liability (UAAL) $ 712,000 Funded ratio (actuarial value of plan assets/AAL) 82.4% Covered payroll (active plan members) $ 3,822,793 UAAL as a percentage of covered payroll 18.6% The schedule of funding progress for postretirement health care that immediately follows the notes to the financial statements presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. Actuarial valuations: Actuarial valuations of an ongoing plan involve estimates of the value of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the ARC of the Commission are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the Commission and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the Commission and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in the AAL and the actuarial value of assets, consistent with the long-term perspective of the calculations. 52 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Note 11.Other Postemployment Benefits (OPEB), Continued In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 6.75% investment rate of retum and a 3% inflation rate assumption. The annual healthcare cost trend rate for non - Medicare eligible premiums were 8.0%; Medicare eligible premiums were 8.3%. The trend rate was reduced by decrements to an ultimate rate of 5.0% after ten years. A 3.25% annual rate of increase in future salaries is also assumed in the valuation. The Commission's UAAL will be amortized as a level percentage of projected covered payroll on a closed basis over a 20-year period. Note 12. Measure A Conformance Requirements Measure A requires that the sales taxes collected may only be used for transportation purposes including administration and the construction, capital acquisition, maintenance, and operation of streets, roads, highways including state highways, and public transit systems and for related purposes. These purposes include expenditures for planning, environmental reviews, engineering and design costs, and related right of way acquisition. Note 13. Subsequent Events In October 2015, a construction accident occurred on the 91 Project. The Commission has not currently determined what, if any, impact this accident may have on the substantial completion date or cost of the Project. Note 14. Pronouncements Issued, Not Yet Effective The GASB pronouncements issued prior to June 30, 2015 that have an effective date that may impact future financial presentations include: • GASB Statement No. 72, Fair Value Measurement and Application, effective for reporting periods beginning after June 15, 2015; • GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statement No. 67 and 68, effective for fiscal years beginning after June 15, 2015; • GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, effective for fiscal years beginning after June 15, 2016; • GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective for fiscal years beginning after June 15, 2017; and • GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Govemments. Management has not currently determined what, if any, impact implementation of these statements may have on the financial statements of the Commission, except that GASB Statement No. 75 will have an effect on the Commission's net position. However, management has not calculated such effect. 53 Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 Required Supplementary Information M Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund Year Ended June 30, 2015 Revenues Sales taxes Intergovernmental Investment income Other Total revenues Expenditures Current: General government Commuter rail Planning and programming Transit and specialized transportation Total programs Debt service: Principal Interest Total debt service Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See notes to required supplementary information General Original Budget $ 2,900,000 2,104,000 14,300 128,500 Final Budget $ 2,900,000 2,104,000 14,300 128,500 Actual $ 2,900,000 557,128 44,339 1,311,763 $ Variance with Final Budget Positive (Negative) (1,546,872) 30,039 1,183,263 5,146,800 5,146,800 5,886,500 16,413,600 5,883,300 352,300 6,457,900 16,430,100 5,881,800 351,200 4,813,230 5,257,414 13,244,546 2,410,289 299,187 (333,570) 1,200,486 3,185,554 3,471,511 52,013 28,535,700 29,121,000 12,000 13,500 21,211,436 11,654 13,203 7,909,564 346 297 570,000 25,500 656,500 24,857 367,560 643 288,940 29,105,700 29,803,000 21,603,853 8,199,147 (23,958,900) 17,823,000 (572,700) 17,250,300 (24,656,200) 18,099,400 (547,700) 17,551,700 (16,790,623) 16,386,035 (2,724) 16,383,311 7,865,577 (1,713,365) 544,976 (1,168,389) $ (6,708,600) $ (7,104,500) (407,312) $ 10,590,109 10,182,797 6,697,188 55 Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - Major Special Revenue Funds Year Ended Juno 30, 2015 Measure A Western County Measure A Coachella Valley Transportation Uniform Mitigation Fee Local Transportation Fund Variance with Variance with Variance with Variance with Final Budget Final Budget Final Budget Final Budget Original Final Positive Original Final Positive Original Final Positive Original Final Positive Budget Budget AL -bad MOW* Budget Budges Actual jRegativs0 Budget Budget Actual plagative) Budget Badgst Mani Revenues [Hp) Sales taxes $ 123,902,000 $ 123,902,000 $ 121,356,582 $ (2,545,418) $ 38,976,000 $ 38,976,000 $ 37,719,526 $ (1,256,474) $ - $ - $ - $ - $ 81,500,000 $ 81,500,000 $ 81,332,461 $ (167,539) Transportation Uniform Mitigation Fee 154,600 154,600 - (154,600) - - - - 8,000,000 12,000,000 17,400,782 5,400,782 - Intergovemmental 170,308,500 170,308,500 102,245,933 (68,062,567) • 3,140 3,140 Investment income 486,800 486,800 1,079,644 592,844 24,500 24,500 139,210 114,710- 65,300 65,300 271,067 205,767 256,300 256,300 385,649 129,349 Other 2,920,000 2,920,000 826,286 (2,093,714) - - - _ _ _ - - - _ Total revenues 297,771,900 297,771,900 225,508,445 (72,263,455) 39,000,500 39,000,600 37,858,736 (1,141,764) 8,065,300 12,065,300 17,671,849 5,606,549 81,756.300 81.756.300 61,721256 f35,0601 Expenditures Current: General government 2,667,700 2,269,000 2,032,911 236,089 _ - - - - - - 12,000 12,000 12,000 Birade and pedestrian facilities - - - - - _ - - 2,094,300 2,094,300 1,747.090 347,210 CETAP - - - - - - - 13,081,400- 13,951,000 4,135,996 9,815,004 - - - Commuter assistance 3,295,900 3,320,100 2,891,431 428,669 - _•_ _ _ _ Commuter rail 149,929,500 150,640,480 98,302,229 52,338,251 - - Highways 511,031,400 515,156,100 308,410,196 206,745,904 30,007,400 30,034,600 16,717,913 13,316,687 - - _ . Local streets and roads 35,039,800 35,039,800 34,295,793 744,007 13,663,800 13,663,800 13,203,354 460,446 - - - _ _ _ - - Planning and programming - - - - - - 611,300 680,400 680,358 42 Regional arterials 17,985,000 17,985,200 5,012,254 12,972,946 - - - - 37,743,300 37,758,000 16,003,843 21,754,157 - - - Transit and specialized transportation 6,389,400 6,389,400 5,325,879 1,063,521 6,862,300 6,862,300 5,846,000 1,016,300 - 69,943,000 75,368,589 67,042,773 8,325,816 Total programs 726,338,700 730,800,080 456,270,693 274,529,387 50,533,500 50,560,700 35,767,267 14,793,433 50,824,700 51,709,000 20,139,839 31,569,161 72,660,600 78,155,289 69,482221 8,673,068 Capital outlay 3,150,000 3,100,000 107,774 2,992,226 108,742,265 108,742,265 - 108,742,265 - Total expenditures 729,488,700 733,900,080 456,378,467 277,521,613 159,275,765 159,302,965 35,767,267 123,535,698 50,824,700 51,709,000 20,139,839 31,569,161 72,660,600 78,155,289 69,482,221 8,673,068 Excess (deficiency) of revenues over (under) expenditures (431,716,800) (436,128,180) (230,870,022) 205,258,158 (120,275,265) (120,302,465) 2,091,469 122,393,934 (42,759,400) (39,643,700) (2,467,990) 37,175,710 9,095,700 3,601,011 12,239,029 8.638,018 Other financing sources (uses) Debt issuance - 49,000,000 48,904,095 (95,905) - - - - _ _ _ Transfers in 419,233,800 419,583,800 152,689,860 (266,893,940) 21,900 21,900 188,178 166,278 21,633,600 21,633,600 7,055,549 (14,578,051) - Transfers out (83,979,400) (83,974,400) (58,678,706) 25,295,694 (6,264,300) (6,264,300) (420,292) 5,844,008 (16,330,600) (16,607,000) (16,013,064) 593,936 Total other financing sources (uses) 335,254,400 384,609,400 142,915,249 (241,694,151) 21,900 21,900 188,178 166,278 15,369,300 15,369,300 6,635,257 (8,734,043) (16,330,600) (16,607,000) (16,013,064) 593,936 Net change in fund balances $ (96,462,400) $ (51,510780 (87,954,773) $ (36,435,993) 5020,2533E6) $(120280,365) 2,279,647 $ 122,560,212 $ 07,390,100) $ (24,274,400) 4,167,267 $ 28,441,667 $ 0p4,900) $ (13,005,989) (3,774,035) $ 9,231,954 Fund balances at beginning of year 336,826,290 33,433,491 57,318,771 14 877,309 Fund balances at end of year $ 248,871,517 $ 35,713,138 $ 61,486,038 5 4108274 See notes t0 required supplementary information 56 Riverside County Transportation Commission Schedule of Funding Progress for Postretirement Health Care Actuarial Actuarial Value of Valuation Date Assets June 30, 2013 $ 3,335,000 June 30, 2011 2,340,000 January 1, 2009 1,583,000 June 30, 2007 Actuarial Accrued Liability (AAL)- Unfunded Entry Age AAL (UAAL) $ 4,047,000 3,543,000 2,145, 000 1,794,000 See notes to required supplementary information $ 712,000 1,203,000 562,000 1,794,000 Funded Ratio 82.4% 66.0% 73.8% 0.0% Covered Payroll $ 3,822,793 3,791,900 3,805,596 2,396,757 UAAL as a Percentage of Covered Payroll 18.6% 31.7% 14.8% 74.9% 57 Riverside County Transportation Commission Schedule of Proportionate Share of Net Pension Liability Last Ten Fiscal Years' June 30, 2015 Fiscal Year 20151 Proportion of the net pension liability/(asset) 0.08559% Proportionate share of the net pension liability/(asset) $ 5,325,565 Covered - employee payroll $4,792,270 Proportionate share of the net pension liability/(asset) as percentage of covered -employee payroll 111.13% Plan fiduciary net position as a percentage of the total pension liability 78.21 % See notes to required supplementary information Fiscal year 2015 was the first year of implementation, therefore, only one year is shown. Represents most recent data available. Riverside County Transportation Commission Schedule of Contributions Last Ten Fiscal Years' June 30, 2015 Fiscal Year Contractually required contribution (actuarially determined) Contributions in relation to the actuarially determined contributions Contribution deficiency (excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll Valuation date Methods and assumptions used to determine contribution rates: Actuarial cost method Amortizations method Remaining amortization period Asset valuation method Inflation Projected salary increases Discount rate Retirement age Mortality 20151 5 1,044,018 (1,125,317) $ (81,299) 5 4,792,270 23.48% 6/30/2012 Entry age normal cost method Level of percentage of payroll 19 years as of valuation date 15 year smoothed market 2.75% 3.30% to 14.20% depending on age, service, and type of employment 7.50% (net of administrative expenses) 55 years RP-2000 Healthy Annuitant Mortality Table See notes to required supplementary information ' Fiscal year 2015 was the first year of implementation, therefore, only one year is shown. Represents most recent data available. Budgetary Data Riverside County Transportation Commission Notes to Required Supplementary Information June 30, 2015 In February of each year, department heads begin the process of compiling budget data for the upcoming fiscal year. Budget numbers along with supporting documentation are provided to the Chief Financial Officer by March 15. That budget data is compiled and presented to the Executive Director for review and approval and is submitted to the Budget and Implementation Committee at its April meeting. After review by the Budget and Implementation Committee, the proposed budget is scheduled for preliminary review and comment as well as public hearing at the Commission's May meeting. The final budget for the new fiscal year is then adopted by motion of the Board of Commissioners (Board) no later than June 15 of the current year. This appropriated budget covers substantially all Commission expenditures by financial responsibility unit [e.g., General fund and Measure A (for each of the three county areas), Local Transportation Fund, and Transportation Uniform Mitigation Fee special revenue funds] by fund. All appropriated amounts are as originally adopted or as amended by the Commission. Unexpended appropriations lapse at year-end. All budgets are adopted on a basis consistent with generally accepted accounting principles. As adopted by the Board, expenditure activities of the funds with adopted budgets are controlled at the budgetary unit, which is the financial responsibility level, for each function (i.e., administration, programs, intergovemmental distributions, and capital outlay). These functions provide the legal level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount). Management has the discretion to transfer the budgeted amounts within the financial responsibility unit according to function. Supplemental budget appropriations were necessary during the year. Funding Progress for Postretirement Health Benefits The schedule of funding progress presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. The Commission obtains an actuarial valuation on a biennial basis. The most recent actuarial valuation performed was as of June 30, 2013. Schedule of Proportionate Share of Net Pension Liability The schedule provides the proportion (percentage) of the collective net pension liability, proportionate share (amount) of the collective net pension liability, the Commission's covered -employee payroll, proportionate share (amount) of the collective net pension liability as a percentage of Commission's covered -employee payroll, and the pension plan's fiduciary net position as a percentage of the total pension liability. Schedule of Contributions The schedule provides the Commission's actuarially determined contribution to the pension plan, the Commission's actual contributions, the difference between the actual and actuarially determined contributions, and a ratio of the actual contributions divided by covered -employee payroll. 60 Other Supplementary Information Riverside County Transportation Commission Special Revenue Funds Nonmajor Governmental Funds Description Measure A Palo Verde Valley: This fund is used to account for the revenues from sales taxes which are restricted to expenditures for Palo Verde Valley programs and activities. Freeway Service Patrol: This fund is used to record the revenues received from state funds for the purpose of implementing a freeway service patrol for motorists. Service Authority for Freeway Emergencies: This fund is used to record the revenues received from Department of Motor Vehicle user registration fees for the purpose of implementing an emergency call box system for motorists. State Transit Assistance: This fund is used to account for revenues from sales taxes on gasoline restricted for transit projects. Coachella Valley Rail: This fund is used to account for revenues from state funds for the planning and development of the new Coachella Valley/San Gorgonio Pass corridor rail service. Other Agency Projects Fund: This fund is used to account for revenues from the Riverside County Regional Park and Open Space District for the interagency cooperative planning and development of projects in the County. 63 Assets Cash and investments Receivables: Accounts Interest Total assets Liabilities and fund balances Liabilities: Accounts payable Due to other funds Total liabilities Fund balances: Restricted for: Commuter rail Local streets and roads Motorist assistance Planning and programming Transit and specialized transportation Total fund balances Total liabilities and fund balances Riverside County Transportation Commission Combining Balance Sheet • Nonmajor Govemmental Funds June 30, 2015 Special Revenue Measure A Freeway Palo Verde Service Valley Patrol 5 556 $ 266,015 212.680 1,655,876 319 $ 213,436 $ 1.922,210 Service Authority for Freeway Emergencies State Transit Assistance Coachella Valley Rail 5 6,456,336 $ 62,641,173 S 4,205,509 $ 666,434 6,047 $ 7.128,817 3,750,489 68,035 3,769 $ 66,459,697 $ 4,209,278 $ Other Agency Projects Fund 493,804 6,711 502,515 Total Nonmajor Governmental Funds $ 74,063,393 6,294,390 78.170 $ 80.435.953 $ 173,512 $ 485,114 39,368 163,162 212,880 648,275 556 1,273,934 556 1,273,934 $ 213,436 $ 1,922,210 $ 115,768 298,907 414,665 6,714,152 6,714,152 $ 7,128,817 64 $ 5,878,944 5,878,944 60,580,753 60,580,753 $ 66.459,697 8 152,444 $ 2,728 155,172 4,054,106 4,054,106 S 4.209,278 $ 2,082 5 392 2,474 500,041 500,041 507,515 $ 6,807,854 504,557 7,312.411 4,054,106 556 7,988,086 500,041 60,580,753 73,123,542 80.435,953 Revenues Sales taxes Intergovemmental Investment income Other Total revenues Expenditures Current: Commuter rail Local streets and roads Motorist assistance Planning and programming Transit and specialized transportation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Riverside County Transportation Commission Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2015 Special Revenue Measure A Palo Verde Valley Freeway Service Patrol $ 1,116,668 $ $ 2,264,628 2,838 383,003 Service Authority for Freeway Emergencies 2,171,703 28,360 21,307 1,116,668 2,650,469 2,221,370 1,116,668 1.' 16,6668 3.262,109 3,262,109 1,055,852 State Transit Assistance $ 13,484,353 270,989 13,755,342 8,211,555 1,055,852 8,211,555 Coachella Valley Rail 18,466 18,466 878,076 878,076 Other Agency Projects Fund 508,711 41 508,752 8.711 8,711 Total Nonmajor Govemmental Funds $ 14,601,021 4,945,042 320,694 404,310 20,271,067 878,076 1,116,668 4,317,961 8,711 8,211,565 14,532,971 556 $ 556 $ (611,640) 548,700 (159,825) 388,875 (222,765) 1,496,699 1,273,934 1,165,518 5,543,787 (845,585) (466,000) (845,585) (466,000) 319,933 6,394,219 $ 6,714,152 5,077,787 55,502,966 $ 60,580,753 (859,610) 779,531 779,531 (80,079) 4,134,185 $ 4,054,106 $ 500,041 5,738,096 1,328,231 (1,471,4101 (143,179) 500,041 5,594,917 67,528.625 500,041 $ 73,123,542 65 Revenues Sales taxes Intergovernmental Investment income Other Total revenues Expenditures Current: Commuter rail Local streets and roads Motorist assistance Planning and programming Transit and specialized transportation Total programs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Nonmajor Special Revenue Funds Year Ended June 30, 2015 Measure A Palo Verde Valley Original Final Budget Budget Variance with Final Budget Positive Actual (Negative) $ 1,222,000 $ 1,222,000 $ 1,116,668 $ Freeway Service Patrol Original Final Budget Budget Actual (105,332) $ 2,427,000 1,400 600 1,222,000 1,222,000 1,116,668 1,226,000 1,226,000 1,116, 668 $ - $ 2,427,000 2,264,628 1,400 2,838 600 383,003 (105,332) 2,429,000 2,429,000 2,650,469 109,332 1,226,000 1,226,000 1,116,668 3,240,600 3,436,400 3,262,109 Variance with Final Budget Positive (Negative) (162,372) 1,438 382,403 221,469 Service Authority for Freeway Emergencies Original Final Budget Budget c _ S 1,974,800 1,974,800 2,171,703 14,400 14,400 28,360 10,000 10,000 21,307 Variance with Final Budget Positive Actual (Negative) $ _ $ 1,999,200 1,999,200 2,221,370 196,903 13.960 11,307 222.170 174,291 1,436,500 1,253,500 1,055,852 197,648 109,332 3,240,600 3,436,400 3,262,109 1,226,000 1,226,000 1,116, 668 (4,000) (4,000) 4,000 4,000 174,291 1,436,500 1,253,500 1,055,852 197,648 109,332 3,240,600 3,436,400 3,262,109 4,000 4,000 - $ 556 $ 556 4,000 (811,600) (1,007,400) (611,640) (4,000) 548,700 548,700 548,700 (194,200) (194,200) (159,825) (4,000) 354,500 354,500 388,875 174,291 1,436,500 1,253,500 1,055.852 197,648 395,760 562,700 745,700 1,165,518 419,818 34,375 34,375 (707,500) (707.500) (B45,585) (138,085) (707,500) (707.500) (845,585) (138,085) - $ (457,100) $ (652,900) (222,765) $ 430,135 ...U144,800) $ 1,496,699 $ 1,273,934 38,200 319,933 $ 281,733 6.394,219 $ 6,714,152 Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual-Nonmajor Special Revenue Funds, Continued Year Ended June 30, 2015 State Transit Assistance Coachella Valley Rail Other Agency Projects Fund Variance with Variance with Variance with Final Budget Final Budget Final Budget Original Final Positive Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) Budget Budget Actual (Negative) Revenues Sales taxes $ 12,944,700 $ 12,944,700 $ 13,484,353 $ 539,653 $ - $ - $ $ $ _ $ _ $ Intergovernmental 250,000 508,711 258,711 Investment income 96,500 96,500 270,989 174,489 7,000 7,000 18,466 11,466 41 41 Other Total revenues 13,041,200 13,041,200 13,755,342 714,142 7,000 7,000 18.456 11,466 250,000 508,752 258,752 Expenditures Current: Commuter rail 1.505,000 1,506,000 878,076 627,924 Local streets and roads Motorist assistance Planning and programming 252,100 8,711 243,389 Transit and specialized transportation 27,549,400 27,549,900 8,211,555 19,338,345 Total programs 27,549,400 27,549,900 8,211,555 19,338,345 1,506,000 1,506,000 878,076 627,924 252,100 8,711 243,389 Total expenditures 27,549,400 27,549,900 8,211,555 19,338,345 1,506,000 1,506,000 878,076 627,924 252,100 8,711 243,389 Excess (deficiency) of revenues over (under) expenditures (14,508,200) (14,508,700) 5,543,787 20,052,487 (1,499,000) (1,499,000) (859,610) 639,390 (2,100) 500,041 502,141 Other financing sources (uses) Transfers in - - - 116,000 116,000 779,531 663,531 Transfers out (466,000) (466,000) (466,000) Total other financing sources (uses) (466,000) (466,000) (466,000) 116,000 116,000 779,531 663,531 Net change in fund balances $ (14,974,200) $ (14,974,700) 5,077,787 $ 20,052,487 $ (1,383,000) $ (1,383,000) (80,079) $ 1,302,921 $ - $ (2,100) 500,041 $ 502,141 Fund balances at beginning of year 55,502,966 4,134,185 Fund balances at end of year $ 60,580,753 $ 4,054,106 $ 500,041 Revenues Intergovernmental Investment income Total revenues Expenditures Debt service: Principal Interest Total debt senvice Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses) Debt issuance Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year $ Original Budget 77,700 s Conmercid Papar Final Budget $ Riverside County Transportation Commission Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual --Capital Projects and Debt Service Funds Year Ended June 30, 2015 Capital Projects FurMls variance with Final Budget Positive Actual (Negative) 77,700 1,941,432 77,700 1,941,432 s 1,863,732 l,853 732 Bonds Original Flnal Budget Budget Actual S - $ - $ - $ 514,400 514,400 892,281 514,400 514,400 892,281 Variance with Final Budget Positive (Negative} Debt Service Fund Original Final Budget Budget Actual Variance with Final Budget Positive INegativel - $ 2,767,009 $ 2,767,000 $ 2,764,418 $ (2,582) 377,881 892,300 892,300 1,183,910 291,610 377,881 3,659,300 3,659,300 3,948,328 289,028 S $ 77,700 1,941,432 1,a6$,732 514,400 191,600,000 40,000,000 (3,520,136I 0.$20,139) (417,900,000) 514,400 892,281 142,600,000 40,000,000 (417,900,000) (3,520,139) (3.520.139) (186,300,000) (235,300,000) 32,793,399 (149,574,080) (116,780,681) 7,400,000 7,400,000 7,400,000 - 47,296,200 47,296,200 45,900,072 1,396,128 54.696,200 54696200 53,390,072 1,396.128 54,696,200 54,696,200 53,300,072 1,368.128 377,881 (51,036,900) (51,036,900) (49,351,744) 1,685,156 (142,600,000) (7,206,601) 268,325,920 118,519,319 77300 (1,576707) S (1.656.407) $ (185,785,600) $ (234,785,600) (115,888,400) $ 118,897,200 245,180,453 $ 129,292,053 28,409.069 S 26,830382 26,653,700 26,653.700 22,184.904 (4,468,796) (2,945,741) (2,945,741) 26,653,700 26,653,700 19,239,163 (7,414,537) $ (24,383,200) $ (24,383,200) (30,112,581) $ (5,729,381) 136,312,284 $ 106,199,703 Riverside County Transportation Commission Schedule of Expenditures for Local Streets and Roads by Geographic Area - All Special Revenue Funds Year Ended June 30, 2015 Western County: City of Banning $ 513,556 City of Beaumont City of Calimesa 145,441 City of Canyon Lake 165,116 City of Corona 3,622,215 City of Eastvale 1,094,638 City of Hemet 1,567,441 City of Jurupa Valley 1,755,787 City of Lake Elsinore 1,111,490 City of Menifee 1,415,503 City of Moreno Valley 3,463,942 City of Murrieta 2,028,241 City of Norco 582,469 City of Perris 1,357,804 City of Riverside 6,520,333 City of San Jacinto 750,079 City of Temecula 2,634,834 City of Wildomar 541,756 Riverside County 5,023,773 Other 1,375 34,295,793 Coachella Valley: City of Cathedral City 1,369,231 City of Coachella 601,469 City of Desert Hot Springs 477,282 City of Indian Wells 242,239 City of Indio 1,722,928 City of La Quinta - City of Palm Desert 2,576,819 City of Palm Springs 1,952,132 City of Rancho Mirage 835,411 Riverside County 1,986,864 Coachella Valley Association of Governments, including $718,730 due to City of La Quinta 1,437,459 Other 1,520 13,203,354 Palo Verde Valley: City of Blythe 889,848 Riverside County 226,820 1,116,668 Total local streets and roads expenditures $ 48,615,815 69 Riverside County Transportation Commission Schedule of Expenditures for Transit and Specialized Transportation by Geographic Area and Source - All Special Revenue Funds Year Ended June 30, 2015 Sales Taxes Local State Transportation Transit Measure A Fund Assistance Total Western County: Blindness Support Services, Inc. $ 67,347 $ $ $ 67,347 Boys and Girls Club of Southwest County 174,394 174,394 Care -A -Van 335,281 335,281 Care Connexxus 255,000 255,000 City of Banning 1,589,160 322,133 1,911,293 City of Beaumont 1,847,564 10,445 1,858,009 City of Corona 1,733,681 2,024,512 3,758,193 City of Norco 60,000 60,000 City of Riverside 2,629,057 104,993 2,734,050 Community Connect 245,596 245,596 Friends of the Moreno Valley Senior Citizens 67,162 67,162 Independent Living Partnership 586,118 586,118 Inland Aids Project 82,466 82,466 Operation Safe House 24,936 24,936 Riverside County Regional Medical Center 304,817 304,817 Riverside Transit Agency 2,908,344 44,458,618 4,995,851 52,362,813 United States Veterans Initiative 43,305 43,305 Other 171,113 426 171,539 5,325,879 52,258,080 7,458,360 65,042,319 Coachella Valley: SunLine Transit Agency 5,846,000 13,829,863 333,761 20,009,624 5,846,000 13,829,863 333,761 20,009,624 Palo Verde Valley: Palo Verde Valley Transit Agency 954,830 419,434 1,374,264 954,830 419,434 1,374,264 Total transit and specialized transportation expenditures $11,171,879 $ 67,042,773 $ 8,211,555 $ 86,426,207 70 Statistical Section Riverside County Transportation Commission Statistical Section Overview This part of the Riverside County Transportation Commission's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Commission's overall financial health. Financial Trends: These schedules contain trend information to help the reader understand how the govemment's financial performance and well-being have changed over time. The schedules include: Net Position By Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Govemmental Funds Revenue Capacity: These schedules contain information to help the reader assess the government's most significant local revenue source, the Measure A sales tax. These schedules include: Sources of County of Riverside Taxable Sales by Business Type Direct and Overlapping Sales Tax Rates Principal Taxable Sales Generation by City Measure A Sales Tax Revenues by Program and Geographic Area Measure A Sales Tax by Economic Category Debt Capacity: These schedules present information to help the reader assess the affordability of the govemment's current levels of outstanding debt and the govemment's ability to issue additional debt in the future. These schedules include: Pledged Revenue Coverage Ratios of Outstanding Debt by Type Computation of Legal Debt Margin Demographic and Economic Information: These schedules offer demographic and economic indicators to help the reader understand the environment within which the govemment's financial activities take place. These schedules include: Demographic and Economic Statistics for the County of Riverside Employment Statistics by Industry for the County of Riverside Operating Information: These schedules contain service and infrastructure data to help the reader understand how the information in the govemment's financial report relates to the services the government provides and the activities it performs. These schedules include: Full-time Equivalent Employees by Function/Program Operating Indicators Capital Asset Statistics by Program 71 Governmental activities: Riverside County Transportation Commission Net Position by Component Last Ten Fiscal Years (Accrual Basis) Fiscal Year 2015 2014 2053 2012 2011 2010 2000 2008 2007 2006 Net Investment in capital assets $ 509,106,481 $ 381,796,683 5 $ 336,834,025 $ 327,277,502 $ 341,912,094 4 $ 294,218,263 3 $ 266,647,382 2 $ 207,478,034 ' $ 147,874,291 $ 137,129,082 Restricted 578,207,942 642,385,244 619,089,707 572,183,941 587,098,179 549.781,414 505,474,075 521,711,172 531,154,177 442,129,220 Unrestricted (deficit) (M.769.876) (470,327,554) (216,162,697) (215,929,362) (293,146,251) (229,888,408) (205,658,986) (149,004,964) (118,675,049) (102,074,881) Total govemmental activities net position $ 463.544547 ° .S 553,854.373 $ 739,761,035 $ 683,532,081 $ 635,864,022 $ 614,111,269 $ 566,462,471 $ 580,184,242 $ 560,353,419 $ 477,183,421 Source: Finance Department ' Net investment in capital assets increased in 2008 primarily as a result of right of way purchases related to the Mid County Parkway project 2 Net investment in capital assets increased in 2009 primarily as a result of right of way purchases related to the Mid County Parkway project, the planning and development of toll projects, and the construction of a multimodal transit facility and a commuter rail station parking structure 3 Net investment in capital assets increased in 2010 primarily as a result of the planning and development of toll projects and the completion of construction of the Perris Transit Center and North Main Corona station parking structure ' Net investment in capital assets increased in 2011 primarily as a result of the planning and development of toll projects and rigM of way acquisiton for the 91 Project and Perris Valley Line extension project 5 Net investment in capital assets increased in 2014 primarily as a result of construction related to the Perris Valley Line project. B In FY 2015, the Commission implemented GASB Statement No 68, Accounting and Finandal Reporting for Pensions, and GASB Statement No 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68. Prior year amounts in this presentation have not been revised to reflect this change Net Position by Component 31,200,000,000 $1,000,000,000 $800,000,000 $800,000,000 $400,000,000 $200,000,000 Y $(200,000,000) $(400,000,000) $(800,000,000) $(800,000,000) 73 ■ Unrestricted (deficit) o Restricted • Net Investment in capital assets Riverside County Transportation Commission Changes in Net Position Last Ten Fiscal Years (Accrual Basis) Fiscal Year Ended June 30 2015 Expenses Govemmental activities: General govemment $ 7,402,725 $ 6,994,832 $ 6,959,827 $ 7,780,478 $ 8,453,876 $ 7,024,517 $ 5,525,963 $ 5,299,048 $ 5,592,637 $ 4,8413,292 Bicycle and pedestrian projects 1,747,090 1,065,476 956,308 1,389,567 1,940,499 317,048 2,747,151 1,436,710 760,840 848,959 CETAP 4,130,374 2,195,074 954,700 4,464,387 5,490,993 2,362,393 4,832,008 8,017,024 5,433,499 3,549,663 Commuter assistance 2,914,990 3,171,842 2,904,048 3,193,172 2,868,630 3,266,834 5,199,032 3,464,834 3,122,306 ,549,683 Commuter rail 20,455,178 17,255,402 23,531,252 21,480,248 27,792,375 20,544,634 16,038,028 14,832,473 12,458,895 11,350,220 Highways 228,857,938 339,194,681 59,604,916 72,341,578 40,113,092 24,828,958 143,532,009 59,988,334 42,436,979 36,226,705 Local streets and roads 48,615,708 46,677,580 44,594,891 40,127,890 36,856,925 34,258,313 45,661,155 54,520,115 60,099,526 60,389,876 Motorist assistance 4,314,601 3,498,420 3,563,581 3,846,245 3,530,695 2,987,136 2,623,184 3,983,252 2,408,612 2,280,646 Planning and programming 3,064,115 3,216,441 3,725,703 3,924,413 4,683,272 5,321,121 10,126,142 7,931,869 6,561,185 5,976,647 Right of way management - - 1 1,270,487 1,428,066 1,399,316 551,960 631,996 622,498 Regional arterials 21,010,980 23,886,840 17,047,135 5,816,666 29,362,894 26,371,339 20,948,530 31,131,731 30,756,287 17,164,803 Transit and specialized transportation 86,712,958 78,723,898 55,659,188 51,221,772 44,699,650 43,820,225 77,417,741 83,927,945 75,567,829 62,527,276 Interest expense 50,037,270 52,939,762 15,364,677 15,221,031 11,799,586 7,099,038 9,515,282 6,281,232 6,881,128 7,832,733 Total govemmental activities expenses 479,263,927 578,820,248 234,866,226 230,807,447 218,862,974 179,629,622 345,565,541 281,366,527 252,711,719 216,506,789 3 2014 2013 2012 2011 2010 2009 2008 2007 2006 Program Revenues Govemmental activities: Charges for services Commuter assistance 1,500 - - Commuter rail 786,869 297,911 107,194 145,735 2,525,314 352,826 463 382 Right of way management - - 184,010 196,527 421,738 507.298 497,656 445,313 Highways 90,655 412,535 796,385 - 50 Motorist assistance 21,307 15,026 13,915 19,778 - Planning and programming - - _ - Other 450 999 14,873 27,681 46 2,331 2,367 26,273 Operating grants and contributions 57,784,238 61,767,456 46,567,900 54,641,955 39,886,648 23,130,456 90,280,426 28,391,787 47,313,916 90,389,018 Capital grants and contributions 70,133,121 71,744,926 4,897,301 5,228,621 9,199,268 12,257,099 25,321,886 9,742,280 620,292 997,362 Total govemmental activities program revenues 128,816,640 134,238,853 52,399,068 60,016,311 49,297,607 35,584,082 118,569,188 38,996,522 48,434,694 91,858,398 Net Revenues (Expenses) Govemmental activities (350,447,287) (444,581,395) (182,467,158) (170,791,136) (169,565,367) (144,045,540) (226,996,353) (242,370,005) (204,277,025) (124,648,391) General Revenues Govemmental activities: Measure A sales taxes 163,092,776 156,355,894 149,428,124 134,984,307 123,439,833 114,526,254 119,688,289 142,537,548 154,539,723 157,236,314 Transportation Development Act sales taxes 94,816,814 91,953,554 86,999,018 80,044,131 60,772,795 69,499,841 77,920,485 93,042,150 104,160,163 90,927,244 Unrestricted investment eamings 6,060,400 9,794,662 1,664,789 4,196,452 4,411,122 5,987,921 14,211,197 25,055,456 23,897,399 11,639,575 Other miscellaneous revenue 1,643,078 556,049 604,181 1,287,981 2.694,370 1,680,322 1,454,611 1,565,674 1,571,716 1,698,024 Gain on sale of capital assets - 14,574 - - - - - - 3,278,022 5,874,796 Total govemmental activities general revenues 265.613.068 258,674,733 238,696,112 220,512,871 191,318,120 191,694,338 213,274,582 262,200,828 287,447,023 267,375,953 Changes in Net Position Govemmental activities $ (84,834,219) $ (185,906,662) $ 56.228.954 $ 49,721,735 $ 21,752,753 $ 47,648,798 $ (13,721,771) $ 19,830,823 $ 83,169,998 $ 142,727,562 Source: Finance Department 1 Right of way expenditures were classified as highways or commuter rail expenditures beginning in 2012 2 In FY 2012 the Commission implemented GASB Statement No. 65, Items Previously Reported as Assets and LiabiNies. Prior year amounts in this presentation have not been revised to reflect this change 3 In FY 2015, the Commission implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - An Amendment of GASB Statement No. 68. Prior year amounts in this presentation have not been revised to reflect this change. ;a $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $- $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ Riverside County Transportation Commission Changes in Net Position (Continued) Last Ten Fiscal Years Expenses by Function 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Revenues by Source 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ■ Inlerestexpense INTransit and specialized transportation Regional arterials • Right of way management ■ Planning and programming ■ Motorist assistance •Local streets and roads • Highways INCommuter rail ■ Commuter assistance OCETAP ■ Bicyde and pedestrian facilities ■ General government • Gam on sale of capital assets ■ Other miscellaneous revenue ■ Unrestricted investment earnings o Transportation Development Act sales taxes ■ Measure A sales taxes o Capital grants and contributions ■ Operating grants and contributions ■ Charges for services GENERAL FUND General fund: Nonspendable 255,446 $ 257,721 $ 194,794 $ 157,957 $ 143,397 $ 253,819 Restricted 5,680,411 5,073,685 7,412,686 8,114,440 7,110,013 7,266,584 ' Committed 1,606,976 ' Assigned 4,246,940 5,258,703 5,232,871 5,412,830 6.270.944 4.134.059 ' Total general fund $ 10,182,797 $ 10,590,109 S 12,040,351 $ 13,S95,227 $ 11524,354 $ 13,261,438 General fund: Reserved Unreserved Total general fund ALL OTHER GOVERNMENTAL FUNDS All other govemmental funds: Nonspendable $ 21,510,571 $ 31,978,235 $ 3,274,483 $ 1,481,019 $ 5,389,775 $ 2,554,136 Restricted 772,109,076 988,908,077 606,072,061 560,412,373 570,450,515 535,752,354 Total all other governmental funds $ 793,619,647 $ 1,020,886,312 $ 609,346,544 $ 561,893,392 $ 575,840,290 $ 538,306,490 All other govemmental funds: Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other govemmental funds Source: Finance Department Riverside County Transportation Commission Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis) Fiscal Year 2015 2014 2013 _ 2012 2011 2010 2009 2008 2007 2006 $ 8,758,708 $ 6,888,3E6 $ 7,070,115 $ 3348.711 3,238,251 2,877,923 3 10,105419 $ 10-128237 $ 9,948,038 S 7,215,579 2,014,480 9,230,059 $ 487,425,652 $ 520,874,648 $ 533,276,158 $ 438,453,362 8,289,036 7,297,744 6,936,417 5,745,792 (49,576,636) (7,253,535) $ 446,138,052 $ 520,918,857 $ 540,212,575 $ 444,199,154 ' In FY 2010 the Commission implemented GASB Statement No 54, Fund Balance Repor6'ng and Govemmental Fund Type Definitions. Prior year amounts in this presentation have not been revised to reflect this change :L Riverside County Transportation Commission Changes in Fund Balances of Govemmental Funds Last Ten Fiscal Years (Modified Accrual Basis) Fiscal Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Revenues Sales taxes $ 257,909,590 $ 248,309,448 $ 236,427,142 $ 215,028,438 $ 184,212,628 $ 184,026,095 $ 197,608,774 $ 235,579,698 $ 258,699,886 $ 248,163,558 Transportation Uniform Mitigation Fee 17,400,782 11,284,394 12,421,110 8,116,420 9,157,863 8,618,231 10,957,420 14,556,029 40,757,248 85,228,383 Intergovernmental 110,515,661 122,486,605 38,817,347 51,516,775 40,012,488 26,769,324 105,512,656 22,249,107 5,498,660 4,365,183 Investment income 6,258,226 9,979,912 1,769,709 4,308,395 4,524,219 5,663,178 13,567,938 23,744,305 23,897,399 11,639,575 Vehicle registration user fees - 1,677,374 1,684,088 1,681,130 1,629,087 Other 2,542,359 1,282,520 1.540.542 1,430,195 2,878,380 1,853,641 1,876,349 2.072.972 2,175,372 2,143,330 Total revenues 394,626,618 393,342,879 290,975,850 280,400.223 240,785,578 226,930,469 331,200,511 299,886,199 332.709.695 353,169,116 Expenditures Current: General Govemment 7,302,325 6,991,303 6,692,187 7,586,207 8,340,263 6,920,479 5,368,677 5,290,616 5,545,466 4,674,157 Programs: Bicycle and pedestrian facilities 1,747,090 1,065,476 956,308 1,389,567 1,940,499 317,048 2,747,151 1,436,710 760,840 848,959 CETAP 4,135,996 6,509,915 954,700 4,464,387 5,490,993 2,362,393 35,809,396 21,098,240 5,433,499 3,549,683 Commuter assistance 2,891,431 3,136,150 2,868,356 3,157,480 2,816,392 3,228,709 5,155,263 3,377,881 3,097,534 2,883,352 Commuter rail 112,424,851 68,072,414 27,118,480 39,870,670 35,482,511 33,733,888 40,704,106 21,470,133 14,044,435 10,570,931 Highways 325,128,109 299,398,122 118,750,336 111,049,502 75,011,698 45,698,211 165,100,551 65,697,249 48,359,404 37,073,826 Local streets and roads 48,615,815 46,677,580 44,594,891 40,127,890 36,856,925 34,258,313 45,661,155 54,520,115 60,099,526 60,389,876 Motorist assistance 4,317,961 3,498,420 3,563,581 3,846,245 3,530,695 2,987,136 2,623,184 3,983,252 2,408,612 2,280,646 Planning and programming 3,099,358 3,204,073 3,712,596 3,913,520 4,674,397 5,312,246 9,193,944 6,939,409 5,586,992 4,884,556 Right of way management - - 4 1,270,487 1,428,066 1,399,316 551,960 631,996 622,498 Regional arterials 21,016,097 23,886,840 17,047,135 5,816,666 29,362,894 26,371,339 20,948,530 59,841,509 30,756,287 19,462,949 Transit and specialized transportation 86,725,394 78,723,898 55,659,188 51,221,772 44,699,650 43,820,225 77,417,741 83,927,945 75,567,829 62,527,276 Debt service: Principal 7,411,654 67,112,884 6,824,654 46,523,931 109,607,230 57,738,548 33,646,475 141,870,000 30,225,589 28,669,418 Interest 45,913,275 43,410,203 15,404,719 15,008,695 11,296,268 5,240,307 12,026,942 6,657,569 6,564,973 7,679,019 Cost of Issuance 7,050,855 - 1,493,196 675,464 - 1,261,668 236,058 Intergovernmental distributions 975,833 992,460 974,193 1,092,091 Capital outlay 475,334 143,888 220,443 209,716 147,297 124.080 1,055,997 335,023 161,268 290,461 Total expenditures 671,204.690 658,882,021 304,367,574 334,186,248 372,021,395 270,216,452 459,834,261 479,251,739 290,218,443 247,735,756 Other financing sources (uses): Sales of capital assets - 4,240,148 11,360.556 Capital lease 117,127 Debt issuance 48,904,095 638,854,602 60,000,000 40,000,000 170,000,000 268,284,000 53,716,000 160,249,021 50,000,000 Discount on debt issuance (2,433,315) (967,467) (278,685) Premium on debt issuance 38,328,775 • Payment to refunded bond escrow agent • - (129,394,875) Transfers in 232,626,156 481,987,735 133,065,312 123,977,167 185,354,839 104,833,227 33,466,298 164,063,070 34,745,015 34,517,083 Transfers out (232,626,156) (481,987,735) (133,065,312) (123,977,167) (185,354,839) (104,833,227) (33,466,298) (164,063,070) (34,745,015) (34,517,083) Total other financing sources (uses) 48,904,095 674,750,062 60,000,000 40,000,000 169,032,533 138,610,440 53,833,127 160,249,021 54,240,148 11,360,556 Net change in fund balances $ (227,673,977) $ 409,210,920 $ 46,608,276 $ (13,786,025) $ 37,796,716 $ 95,324,457 $ (74,800,623) $ (19,116,519) $ 96,731,400 $ 116,793,916 Debt service as a percentage of noncapital expenditures 11 0% 191% 5 9.3% 22 5 % 32 5%' 23.3% 2 9 9% 31 0%' 12 7 % 14 7% Source: Finance Department Debt service as a percentage of noncapital expenditures in 2008 increased significantly as a result of the refinancing of $110,005,000 of commercial paper, which is included in principal payments Debt service as a percentage of noncapital expenditures in 2010 increased significantly as a result of the retirement of $53,716,000 of commercial paper, which is included in principal payments. 3 Debt service as a percentage of noncapital expenditures in 2011 increased significantly as a result of the retirement of $103,284,000 of commercial paper, which is included in principal payments. Right of way management expenditures were classified as highways or commuter rail expenditures beginning in 2012. 5 Debt service as a percentage of noncapital expenditures in 2014 increased significan0y as a result of the retirement of $60,000,000 of commercial paper, which is included in principal payments and interest payments and cost of issuance as a result of the issuance of $638,854,602 in debt Riverside County Transportation Commission Sources of County of Riverside Taxable Sales by Business Type Last Ten Calendar Years (In Thousands) 2013' 2012 2011 2010 2000 2008 2007 2006 2005 2004 Apparel stores $ 1,771,603 $ 1,672,482 $ 1,505,821 $ 1,391,174 $ 1,293,271 $ 1,121,543 $ 1,171,013 $ 1,080,385 $ 990,129 $ 867,276 General merchandise stores 3,298,920 3,174,022 3,051,709 2,947,905 2,855,733 3,389,936 3,593,134 3,553,554 3,304,474 3,026,335 Food stores 1,421,590 1,356,148 1,304,731 1,267,758 1,251,220 1,254,366 1,352,609 1,309,782 1,197,438 1,079,972 Eating & drinking 2,836,388 2,668,324 2,473,339 2,317,486 2,266,853 2,340,554 2,388,039 2,316,422 2,157,801 2,007,338 Household 996,484 930,068 914,888 412,325 858,098 816,379 843,945 948,217 964,629 862,551 Building materials 1,535,178 1,364,513 1,303,073 1,232,145 1,237,518 1,435,337 1,961,911 2,390,236 2,424,898 2,596,661 Automotive 7,421,523 7,009,138 6,311,272 5,306,408 4,749,994 6,126,512 7,137,075 6,956,756 6,751,648 6,240,712 Other retail sales 2,025,088 1,841,973 1,711,453 1,951,385 1,442,875 3,250,335 2,794,790 1,024,551 944,155 1,191,029 Total all other outlets 8.758,693 8,079,341 7,065,212 6,326,194 6,272,315 6,268,633 7,781,093 10,236,334 9,521,319 7,365,274 $ 30.065.467 $ 28,096,009 $ 25,641,498 $ 23,152,780 $ 22,227,877 $ 26,003,595 $ 29,023,609 $ 29,816,237 $ 28,256,491 $ 25,237,148 Measure A direct sales tax rate (Ordinance 88-1 through 2009 and 02-001 thereafter) Source: State Board of Equalization ' Year represents most recent data available 0 50°4 0.50% 0.50% 0 50% 0.50% 0.50% 0.50% 0.50% 0.50% 0 50% Sources of County of Riverside Taxable Sales by Business Type for 2013 Apparel stores 6% Other retail sales 7% Food stores 5% Household 3% Building materials 5% Fiscal Year Riverside County Transportation Commission Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years Measure A Direct Rate' County of Riverside 2015 0.50% 8.00% 2014 0.50% 8.00% 2013 0.50% 8.00% 2012 0.50% 7.75% 2011 0.50% 8.75% 2010 0.50% 8.75% 2009 0.50% 8.75% 2008 0.50% 7.75% 2007 0.50% 7.75% 2006 0.50% 7.75% Source: Commission Finance Department and California State Board of Equalization. The Measure A sales tax rate may be changed only with the approval of 2/3 of the voters. 2 The State of Califomia increased the state sales tax rate 1% in April 2009. 3 Effective July 1, 2011, the State of California decreased the state sales tax rate by 1%. " Effective January 1, 2013, the State of California increased the state sales tax rate by 0.25%. 79 City of Riverside City of Corona City of Temecula City of Palm Desert City of Moreno Valley City of Murrieta City of Palm Springs City of Hemet City of Indio City of Jurupa Valleys City of Perris City of La Quinta City of Cathedral City City of Lake Elsinore City of Eastvale4 City of Menifee3 City of Norco City of Rancho Mirage City of Beaumont City of Coachella City of San Jacinto City of Banning City of Blythe City of Desert Hot Springs City of Wildomarz City of Indian Wells City of Calimesa City of Canyon Lake Incorporated Unincorporated Countywide Califomia $ 30,065,467 Riverside County Transportation Commission Principal Taxable Sales Generation by City Current Year and Nine Years Ago 2013'1 2004 Taxable Sales (in thousands) Percentage of Taxable Sales (in Percentage of Rank Total thousands) Rank Total 4,612,948 2 15.3% 4,603,769 2 18.2% 3,111,998 3 10.3% 2,911,471 3 11.5% 2,610,286 4 8.7% 2,421,040 4 9.6% 1,530,512 5 5.1% 1,433,296 5 5.7% 1,349,129 6 4.5% 1,125,487 6 4.5% 1,147,563 7 3.8% 885,682 9 3.5% 985,824 8 3.3% 747,391 10 3.0% 911,841 9 3.0% 896,825 7 3.6% 806,604 10 2.7% 737,344 11 2.9% 806,187 11 2.7% - N/A 738,592 12 2.5% 464,250 16 1.8% 731,325 13 2.4% 584,039 12 2.3% 714,179 14 2.4% 887,982 8 3.5% 688,483 15 2.3% 478,762 14 1.9% 538,279 16 1.8% N/A 474,050 17 1.5% N/A 468,781 18 1.5% 503,573 13 2.0% 399,919 19 1.3% 466,823 15 1.9% 352,449 20 1.2% 131,783 20 0.5% 309,858 21 1.0% 208,854 17 0.8% 208,934 22 0.7% 109,391 21 0.4% 175,386 23 0.6% 206,424 18 0.8% 168,254 24 0.6% 141,122 19 0.6% 142,477 25 0.5% 82,056 22 0.3% 122,793 26 0.4% N/A 91,160 27 0.3% 73,806 23 0.3% 61,980 28 0.2% 40,742 24 0.2% 16,452 29 0.1% 16,462 25 0.1% 24,276,243 80.7% 20,158,374 79.9% 5,789,224 1 19.3% 5,078,774 1 20.1 % 100.0% $ 25,237,148 100.0%u $ 586,839,618 Source: Califomia State Board of Equalization for the calendar year indicated. ' Year represents most recent data available. 2 City of Wildomar was incorporated on July 1, 2008. 3 City of Menifee was incorporated on October 1, 2008. ° City of Eastvale was incorporated on October 1, 2010. 5 City of Jurupa Valley was incorporated on July 1, 2011. $5,000,000 $4,500,000 $4,000,000 $3.500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 a - $ 460,006,468 s Taxable Sales by City ti°� sG�lfJAQ�e�wy�-.�� G�c �P00 a�h moo�Q`3eo�s 4' AdetGs 09e Gto�eoo 9-�c$`ofe13 CkG`dsko0G er G eck e0 k 6 0. r \a• .fie o4a �,ok•••-,(� ��e �a eke ,1aV Sao e,C O SC s �o G d` tr3� rya et Gao G cA6 G. G•Ol c; tee` -e- 20131 - 2004 8O Administration Highways Regional arterials Highways and regional arterials New corridors Economic development incentives Local streets and roads Public transit: Commuter assistance Commuter rail Bus Specialized transportation Bus and specialized transportation Bond financing Source: Finance Department $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Riverside County Transportation Commission Measure A Sales Tax Revenues by Program and Geographic Area Year Ended June 30, 2015 General Fund $ 2,900,000 Special Revenue Funds Western County 36,840,391 10,835,409 13,363,671 1,444,721 35,034,490 1,805,902 7,368,078 767,508 1,842,020 2,302,524 9,751,868 $ 2,900,000 $ Coachella Valley 18,859,763 Palo Verde 13,201,834 1,116,668 5,657,929 Total $ 2,900,000 36,840,391 10,835,409 18,859,763 13,363,671 1,444,721 49,352,992 1,805,902 7,368,078 767,508 7,499,949 2,302,524 9,751,868 121,356,582 $ 37,719,526 $ 1,116,668 $ 163,092,776 Geographic Distribution by Area Palo Verde 1% Coachella Vafley 23% General Fund 2% Sales Tax Revenues by Program and Geographic Area y �� 6`' ° 5 c° Sab y`t �� ale a�g� o�.b fi b�° `y � 4.1" Pa ge �a� A°cap -s ..qz• gm\'3, a'e��yy Q°�tm ag,��o Go�c� ticP a 64e e 0� �QgG,a``�ey�eGla`.ye ra ya Palo Verde Coachella Valley 1 Western County ■ General Fund 81 Riverside County Transportation Commission Measure A Sales Tax by Economic Category Last Nine Calendar Years of Total Economic Category 2014' 2013 2012 2011 2010 2009 2008 2007 2006 General retail 28.4 28.7 28.8 29.8 30.9 30.9 28.2 26.8 25.5 Transportation 26.6 27.0 26.9 27.1 25.0 22.8 24.9 26.1 26.5 Food products 16.6 16.1 16.2 16.4 17.0 17.8 16.0 14.4 13.3 Business to business 14.4 14.5 15.0 14.1 14.5 15.2 16.4 15.9 15.3 Construction 12.0 11.8 11.1 10.5 10.5 11.1 12.3 14.4 16.9 Miscellaneous 2.0 1.9 2.0 2.1 2.1 2.2 2.2 2.4 2.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: MuniServices LLC. Prior years' information is not available. ' Year represents most recent data available. 82 Riverside County Transportation Commission Measure A Revenues and Pledged Revenue Coverage' Last Ten Fiscal Years Sales Tax Revenue Bonds Measure A Sales Total Debt Net Measure A Tax Revenue Senior Lien Subordinate Service Sales Tax Growth (Decline) Senior Lien Debt Coverage Lien Debt Total Debt Coverage Fiscal Year Revenues2 Rate Service Ratio Service Service Ratio 2015 163,092,776 9.14% $ 53,300,072 3.06 $ - $ 53,300,072 3.06 2014 156,355,894 4.64% 50,499,417 3.10 - 50,499,417 3.10 2013 149,428,124 10.704/0 22,156,116 6.74 - 22,156,116 6.74 2012 134,984,307 9.35% 21,503,582 6.28 21,503,582 6.28 2011 123,439,833 7.78% 12,651,386 9.76 - 12,651,386 9.76 2010' 114,526,254 -4.31% 8,918,183 12.84 - 8,918,183 12.84 20094 119,688,289-16.03% 34,020,724 3.52 1,452,634 35,473,358 3.37 2008 142,537,548 -7.77% 34,002,732 4.19 1,470,388 35,473,120 4.02 2007 154,539,723 -1.71% 34,005,357 4.54 1,469,588 35,474,945 4.36 2006 157,236,314 13.18% 34,012,634 4.62 1,470,587 35,483,221 4.43 Source: Finance Department ' This schedule meets the requirements for Continuing Disclosure of historical Measure A sales tax revenues. 2 Sales tax revenue bonds are backed by the sales tax revenues, net of Board of Equalization fees, during the fiscal year. 3 In FY 2010 the 2008 bonds related to the 2009 Measure A program were current refunded. The payment to escrow agent is excluded from debt service. 4 In FY 2009 all bonds related to the 1989 Measure A program matured as the 1989 Measure A program expired on June 30, 2009. 83 Riverside County Transportation Commission Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities MSHCP Total Percentage Sales Tax Toll Revenue Commercial Contract Funding Remediation Capital Governmental of Personal Debt per Year Revenue Bonds Bonds TIFIA Loan Paper Payable Liability Liability Leases Activities Income' Capita' 2015 $ 759,100,000 $ 183,850,710 $ 48,904,095 $ - $ $ 15,000,000 $ 260,826 $ 60,357 $ 1,007,175,988 N/A $ 436.30 2014 766,500,000 180,122,129 - - 18,000,000 1,576,406 72,011 966,270,546 N/A 423.81 2013 311,400,000 60,000,000 6,289 371,406,289 0,49% 167,47 2012 317,138,111 - 30,943 317,169,054 0,44% 142.38 2011 323,537,074 - 54,874 323,591,948 0.48% 145,91 2010 180,731,699 83,284,000 78,104 264,093,803 0.41% 121,16 2009 127,538,888 110,000,000 - 100,652 237,639,540 0,38% 111.01 2008 163,738,235 1,100,000 164,838,235 0.26% 78,39 2007 65,495,000 80,005,000 2,100,000 147,600,000 0,24% 72.00 2006 95,695,000 30,005,000 3,100,000 25,591 128,825,591 0,22% 65.20 Sources: Finance Department for outstanding debt for the fiscal year ended June 30 and California State Department of Finance for population as of January 1. 1 See the Schedule of Demographic and Economic Statistics on page 79 for personal income and population data. 84 Riverside County Transportation Commission Computation of Legal Debt Margin' Last Ten Fiscal Years Fiscal Year 2015 2014 2013 2012 2011 2010 2009 20013 2007 2006 Measure A Ordinance No. 024101, as amended by Ordinance No.10-0022 Total debt limit authorized $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 975,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 $ 500,000,000 Amount of debt applicable to debt limit 759,100,000 766,500,000 371,400,000 318,200,000 324,700,000 264,284,000 236,395,000 126,395,000 80,005,000 30,005,000 Legal debt margin $ 215,900,000 $ 2013500,000 $ 603,600,000 $ 656,800,000 $ 650,300,000 $ 235,716,000 $ 263,605,000 $ 373,605,000 $ 419,995,000 $ 469,995,000 % of debt to legal debt limit Measure A Ordinance No. U-1, as amended by Ordinance 92.1' Total debt limit authorized Amount of debt applicable to debt limit Legal debt margin % of debt to legal debt limit Source: FinanceDeparment 77.9% 78.6% 38.1% 32.6% 33.3% 52.9% 47.3% 25.3% 16.0% 6.0% $ 525,000,000 $ 525,000,0(30 $ 525,000,000 $ 525,000,000 33,630,000 65,495,000 95,695,000 $ 525,000,000 $ 491,370,000 $ 459,505,000 $ 429,305,000 0.0% 6.4% 12.5% 18.2% ' The Commission's debt limits were approved by the voters of Riverside County as part of the sales tax ordinances and are specific to the Commission; accordingly, there are no overlapping debt considerations. 2 Ordinance No. 02-001 was approved by a 2l3 majority of the voters in November 2002. In November 2010, a majority of the voters approved Ordinance No.10-002 to increase the debt limit from $500 million to $975 million. ' Ordinance No. 88-1 expired on June 30, 2039. All outstanding debt related to Ordinance 88.1 matured prior to the expiration date. Measure A Ordinance No. 02-001, as amended by Ordinance No. 10-002 1 $1.200,000,000 51,001000000 1500,000,000 5600,000,090 S400000000 S200.000000 s 2015 2014 2013 2012 2011 2010 2009 2005 2007 •Total debt limit authorized sAmount of debt applicable to debt limit 85 J S600.000,000 5500,000,000 5400,000,000 5300,000,000 m200,000,0oe 5100,000.000 5 Measure A Ordinance No. 88-1, as amended by Ordinance 92.1 2009 2008 2007 2005 alTotal debt limit authorized MAmount of debt applicable to debt limit Riverside County Transportation Commission Demographic and Economic Statistics for the County of Riverside Last Ten Calendar Years Per Capita Personal Income Personal Unemployment Calendar Year Population' (thousands)2 Income 2 Rate3 2015 2,308,441 N/A N/A N/A 2014 2,279,967 N/A N/A 8.2% 2013 2,255,059 $ 76,289,477 $ 33,278 10.3% 2012 2,227,577 72,015,057 31,742 12.2% 2011 2,217,778 67,024,780 29,927 12.4% 2010 2,179,692 64,376,498 29,222 14.7% 2009 2,140,626 63,228,086 29,748 13.4% 2008 2,102,741 64,503,728 30,676 8.5% 2007 2,049,902 61,023,518 29,769 6.0% 2006 1,975,913 57,666,983 29,185 5.0% Sources: Califomia State Department of Finance as of January 1. 2 U.S. Department of Commerce Bureau of Economic Analysis. Represents most recent data available. 3 Riverside County Economic Development Agency. Represents most recent data available. Riverside County Transportation Commission Employment Statistics by Industry for the County of Riverside Calendar Year 2013 and Nine Years Prior Industry Type % of Total % of Total 20131 Employment 2004 Employment Agricultural services, forestry, fishing and other 12,100 2.0% 15,100 2.7% Mining 300 0.4% 500 0.1% Construction 42,600 7.1% 70,400 12.5% Manufacturing 39,000 6.5% 50,900 9.0% Transportation, warehousing, and public utilities 24,900 4.2% 13,600 2.4% Wholesale trade 22,400 3.7% 16,800 3.0% Retail trade 82,400 13.8% 76,300 13.5% Professional & business services 57,600 9.6% 54,000 9.6% Education & health services 83,800 14.0% 58,900 10.4% Leisure & hospitality 75,000 12.5% 64,500 11.4% Finance, insurance, and real estate 20,000 3.3% 20,800 3.7% Other services 26,600 4.4% 24,900 4.4% Federal government, civilian 6,800 1.1 % 6,600 1.2% State government 15,800 2.6% 13,900 2.4% Local government 88,600 14.8% 77,200 13.7% Total employment 597,900 100.0% 564,400 100.0% Source: State of California Economic Development Department Year represents most recent data available. 87 Function/Program Riverside County Transportation Commission Full-time Equivalent Employees by FunctionlProgram Last Ten Fiscal Years As of June 30 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Management services and administration 16.2 13.8 14.1 13.9 12.7 8.9 12.7 17.6 15.0 12.2 Planning and programming 6.1 5.9 4.9 5.1 5.2 5.5 5.1 5.4 6.4 5.0 Rail operations and maintenance 4.0 3.1 2.9 3.3 3.1 3.3 2.9 3.1 2.8 3.1 Specialized transit/transportation 2.3 3.4 2.5 2.5 2.6 2.6 2.2 2.0 2.4 2.3 Commuter assistance 3.0 1.7 1.8 1.6 1.6 1.8 1.2 1.3 1.3 2.1 Motorist assistance 0.7 0.9 0.9 1.2 0.9 0.7 0.8 0.7 0.7 0.8 Capital project development and delivery 13.7 15.2 13.9 12.3 11.9 14.2 11.1 7.9 6.4 4.7 Total full-time equivalents Source: Finance Department 46.0 44.0 41.0 40.0 38.0 37.0 36.0 38.0 35.0 30.2 88 Commuter rail operations: Weekday trips Growth of average daily ridership on commuter lines Riverside line IEOC line 91 line Farebox recovery ratio: Riverside line IEOC line 91 line Specialized transit/transportation: Specialized transit grants awarded Commuter assistance: Club Ride members Rideshare Incentive members Rideshare Plus Rewards members Incoming 1-866-RIDESHARE telephone calls Rideshare Connection bulletins produced RideSmart Tips produced Rideguides produced Commuter Exchange events Motorist assistance: Call boxes Calls made from call boxes Contracted Freeway Service Patrol vehicles Assists by Freeway Service Patrol 1E511 web visits 1E511 call volumes Transportation Uniforrn Mitigation Fee program: Approved regional arterial projects Measure A program: Highways Commuter rail Regional arterials Local streets and roads Specialized transit and commuter assistance Total program expenditures Source: Commission Departments Riverside County Transportation Commission Operating Indicators Last Ten Fiscal Years As of June 30 2015 Information not available Information not available Information not available Information not available Information not available Information not available Information not available 20 N/A 736 3,723 1,797 8 N/A 6,527 48 549 3,882 21 42,471 452,713 263,757 24 $ 325,128,109 98,302,229 5,012,254 48,615,815 14,063,310 $ 491,121,717 2 2 2 2 2 2 2014 12,478 5,056 4,385 3,037 57.4% 34.7% 45 3% 22 N/A 1,106 5,770 2,625 10 N/A 10,059 54 570 4,685 21 44,278 443,359 306,108 24 2013 11,635 4,911 4,317 2,407 57.0% 34.9% 42.2% 22 N/A 926 6,786 2,527 13 N/A 14,813 55 580 5,337 21 43,633 399,730 351,161 24 2012 11,675 5,279 4,142 2,254 58.5% 31.3% 49.7% 21 N/A 1,056 4,848 1,531 11 N/A 15,628 52 594 5,043 21 42,748 341,716 362,957 24 $ 299,398,122 $ 118,750,336 $ 111,049,502 56,148,017 15,895,661 19,690,126 1,441 1,787 124 46,677,580 44,594,891 40,127,890 13,378,223 11,927,634 11,930,437 $ 415,603,383 $ 191,170,309 $ 182,798,079 This brochure was discontinued beginning FY 2007/08 2 This information was not available from the Southem California Regional Rail Authority for Metrolink operations 2011 11,321 5,177 3,855 2,289 59.8% 31.1 % 54.6% 22 N/A 1,061 5,518 1,257 13 N/A 29,052 52 613 5,251 22 45,751 244,277 489,036 24 $ 75,011,698 22,632,065 8,638,637 36,856,925 11,262,588 $ 154,401,913 2010 11,340 5,124 4,011 2,205 52.5% 28 3% 49 3% 22 N/A 1,131 7,080 2,145 N/A N/A 43,319 50 614 5,934 22 48,312 N/A N/A 24 2009 12,224 5,269 4,611 2,344 51 0% 37.3% 53 0% 22 7,378 N/A N/A 2,423 N/A N/A 34,940 73 614 6,574 20 43,119 N/A N/A 24 $ 45,698,211 $ 165,100,551 20,312,056 32,089,238 11,920,846 12,645,090 34,258,313 45,661,155 _ 10,161,780 9,838,990 $ 122,351,206 $ 265,335,024 2008 12,304 5,184 4,859 2,261 5301% 42.60% 45.53% 14 5,860 N/A N/A 3,709 N/A N/A 23,121 71 630 7,543 20 45,500 N/A N/A 24 $ 65,697,249 12,419,675 18,220,540 54,520,115 9,071,302 $ 159,928,881 t 2007 11,696 4,769 4,651 2,276 67.07 % 42.19% 49 02 % 15 4,436 N/A N/A 2,613 N/A 45,304 24,676 60 682 9,595 17 40,025 N/A N/A 24 2006 11,391 4,370 4,149 2,107 48.5% 45.5% 57 2% 9 3,901 N/A N/A 2,433 N/A 27,790 N/A 23 979 15,390 15 31,838 N/A N/A 24 $ 48,359,404 $ 37,073,826 14,044,435 2,784,423 30,756, 287 10,350,500 59,202, 631 60,389,876 6,358,224 7,887,298 $ 158,720,981 $ 118,485,923 89 Riverside County Transportation Commission Capital Asset Statistics by Program Last Ten Fiscal Years As of June 30 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Commuter rail: Transit centers owned and managed 1 1 1 1 Commuter rail stations owned and managed 5 5 5 5 5 5 5 5 5 5 Miles of commuter rail easements 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 104.6 Commuter Assistance: Commuter Exchange Vehicle Source: Commission Departments 1 1 1 1 1 1 1 1 1 90 LOCAL TRANSPORTATION FUND OF THE COUNTY OF RIVERSIDE, AS ADMINISTERED BY THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION Financial and Compliance Report Year Ended June 30, 2015 ATTACHMENT 2 Contents Independent Auditor’s Report 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements 8 Schedule of Unclaimed Apportionments (Articles 4 and 8) 9 Schedule of Unclaimed Apportionments (Article 3) 10 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 11-12 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Auditor’s Report Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the Local Transportation Fund (the Fund) of the County of Riverside, California, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund of the County of Riverside, California, as administered by the Commission, as of June 30, 2015, and the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Fund’s financial statements. The schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2015 on our consideration of the Fund’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund’s internal control over financial reporting and compliance. Newport Beach, CA October 30, 2015 3 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2015 Assets Cash and investments in Riverside County Pooled Investment Fund 105,559,394 $ Accounts receivable 15,250,814 Advances receivable 3,000,000 Interest receivable 83,245 Total assets 123,893,453 $ Liabilities and Fund Balance Liabilities: Accounts payable 11,790,179 $ Total liabilities 11,790,179 Restricted: Unapportioned Local Transportation Funds 8,304,622 Rail and bus transit and local streets and roads apportionments 99,180,093 Bicycle and pedestrian projects 4,618,559 Total fund balance 112,103,274 Total liabilities and fund balance 123,893,453 $ See Notes to Financial Statements. 4 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Statement of Revenues, Expenditures and Change in Fund Balance Year Ended June 30, 2015 Revenues: Sales taxes 81,332,461 $ Other reimbursements 3,140 Interest 385,649 Total revenues 81,721,250 Expenditures: Bicycle and pedestrian projects 1,747,090 Transit 79,484,404 Planning and programming 4,263,791 Total expenditures 85,495,285 Net change in fund balance (3,774,035) Fund balance, beginning of year 115,877,309 Fund balance, end of year 112,103,274 $ See Notes to Financial Statements. Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 5 Note 1. Nature of Operations and Significant Accounting Policies The Riverside County Transportation Commission (the Commission), in its capacity as the transportation planning agency for the County of Riverside, California (the County), is responsible for administering funds provided through the Local Transportation Fund (the Fund), which was created in accordance with the provisions of the Transportation Development Act of 1971. The significant revenue to the Fund is derived from 0.25 percent of the 7.50 percent statewide sales tax collected in the County by the State Board of Equalization (State). The accounting policies of the Fund conform to accounting principles generally accepted in the United States as applicable to governmental units. Presentation: The accompanying financial statements of the Fund are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include sales taxes collected and held by the State at year-end on behalf of the Commission and interest revenue. Funding: There is a three-step process for obtaining funds from the Fund: apportionment, allocation and payment. Annually, the Commission determines each area’s share of the anticipated Fund. This share is the area apportionment. Once funds are apportioned to a given area, they are typically available only for allocation to claimants in that area. Allocation is the discretionary action by the Commission that designates funds for a specific claimant for a specific purpose. Payment is authorized by disbursement instructions issued by the Commission. Cash: It is the Commission’s policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF), as legally required, until the funds are required for disbursement. Interest income is earned while these funds are deposited. Accounts receivable: Accounts receivable consist primarily of Fund sales tax revenues from the State on all taxable sales within the County of Riverside, California through June 30, 2015. Advances receivable: Advances receivable consists of a bridge loan to SunLine Transit Agency due to the U.S. Department of Labor’s opposition to California pension reform legislation and related suspension of federal funds. Repayment occurred in August 2015, following an agreement between SunLine Transit Agency and the U.S. Department of Labor which resulted in the release of the federal funds. Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not paid by the Commission, to the appropriate transit operators by June 30, 2015. Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 6 Note 1. Nature of Operations and Significant Accounting Policies (Continued) Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint governing the use of the funds as set forth by enabling State legislation. Expenditures: Expenditures represent disbursements to the Commission, Southern California Association of Governments, cities, the County of Riverside and transit operators that have met the claimant eligibility requirements to receive Fund allocations that are approved by the Commission, per various Public Utilities Code Sections. All disbursements are to be used for transportation purposes. Note 2. Cash and Investments with County Treasurer The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County’s investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. As of June 30, 2015, the Commission had $105,559,394 invested in the RCPIF, with an average maturity of 401 days. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission’s investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2015, the Commission’s investment in the RCPIF was rated Aaa-/bf by Moody’s Investors Service and AAA/V1 by Fitch Ratings. The Commission’s investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers’ acceptances and certificates of deposit. Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 7 Note 3. Fund Balance The restricted fund balance represents the apportionments related to transit programs by geographic area, bicycle and pedestrian projects, planning and programming, and unapportioned Local Transportation Funds. For Western County transit programs, commuter rail and bus allocations are in accordance with the Commission’s policy. At June 30, 2015, amounts in fund balance are restricted as follows: Rail and bus transit and local streets and roads apportionments: Western County: Commuter rail: Allocated and unclaimed 2,000,000 $ Apportioned and unallocated 23,286,708 Bus transit: Allocated and unclaimed—Riverside Transit Agency 5,001,511 Apportioned and unallocated 54,683,186 Total rail and bus transit—Western County 84,971,405 Coachella Valley: Allocated and unclaimed 412,575 Apportioned and unallocated 12,778,653 Total bus transit—Coachella Valley 13,191,228 Palo Verde Valley: Allocated and unclaimed—Transit - Apportioned and unallocated for transit and local streets and roads 1,017,460 Total bus transit and local streets and roads—Palo Verde Valley 1,017,460 Total for rail and bus transit and local streets and roads apportionments 99,180,093 $ Bicycle and pedestrian projects: Allocated and unclaimed 1,378,212 $ Unallocated 3,240,347 Total for bicycle and pedestrian projects 4,618,559 $ Unapportioned Local Transportation Funds 8,304,622 $ Supplementary Information 8 Local Transportation Fund of the County of Riverside,as Administered by the Riverside County Transportation CommissionSchedule of Allocations and DisbursementsYear Ended June 30, 2015UnclaimedAllocations Disbursements (Reimbursement)/Expiration Allocations Disbursements Allocations Disbursements Allocations Disbursements (Returned) Amount Expenditures:City of Banning -$ (24,954) $ -$ 1,589,160 $ 1,589,160 $ -$ -$ 1,589,160 $ 1,564,206 $ -$ 24,954 $ City of Beaumont 150,843 - - 1,847,564 1,847,564 - - 1,998,407 1,847,564 - 150,843 City of Canyon Lake 75,000 - - - - - - 75,000 - - 75,000 City of Corona - - - 1,733,681 1,733,681 - - 1,733,681 1,733,681 - - City of Desert Hot Springs - - (3,140) - - - - - - (3,140) (3,140) City of Eastvale 33,136 - - - - - - 33,136 - - 33,136 City of Hemet 66,500 66,500 - - - - - 66,500 66,500 - - City of Indio 173,400 - - - - - - 173,400 - - 173,400 City of Jurupa Valley70,000 - - - - - - 70,000 - - 70,000 City of Menifee99,375 99,375 - - - - - 99,375 99,375 - - City of Moreno Valley254,667 230,775 - - - - - 254,667 230,775 - 23,892 City of Riverside445,080 280,021 - 2,629,057 2,629,057 - - 3,074,137 2,909,078 - 165,059 City of San Jacinto45,000 - - - - - - 45,000 - - 45,000 City of Temecula332,250 332,250 - - - - - 332,250 332,250 - - City of Wildomar781,394 288,623 - - - - - 781,394 288,623 - 492,771 County of Riverside:Auditor/Controller- - - - - 12,000 12,000 12,000 12,000 - - Road Department749,500 474,500 - - - - - 749,500 474,500 - 275,000 Palo Verde Valley Transit Agency- - - 954,830 954,830 - - 954,830 954,830 - - Commission- - - 14,441,631 12,441,631 3,571,433 3,571,433 18,013,064 16,013,064 - 2,000,000 Riverside Transit Agency- - - 49,460,129 44,458,618 - - 49,460,129 44,458,618 - 5,001,511 SCAG- - - - - 680,358 680,358 680,358 680,358 - - Sunline Transit Agency- - - 14,242,438 13,829,863 - - 14,242,438 13,829,863 - 412,575 3,276,145 $ 1,747,090 $ (3,140) $ 86,898,490 $ 79,484,404 $ 4,263,791 $ 4,263,791 $ 94,438,426 $ 85,495,285 $ (3,140) $ 8,940,001 $ SB 821 Article 3(Reimbursements) Expirations, netTotalsArticle 3Planning, Programmingand AdministrativeArticle 4 9 Local Transportation Fund of the County of Riverside,as Administered by the Riverside County Transportation CommissionSchedule of Unclaimed Apportionments (Articles 4 and 8)Year Ended June 30, 2015 TotalUnclaimedAmounts UnclaimedAmounts Unclaimed Interest ApportionmentApportionment Claimed Apportionment Apportionment Claimed Apportionment Allocation June 30, 2015Western County:Rail13,328,257 $ 11,778,100 $ 1,550,157 $ 23,646,399 $ -$ 23,646,399 $ 90,152 $ 25,286,708 $ Bus47,254,728 47,254,728 - 64,455,801 5,003,352 59,452,449 232,249 59,684,698 Coachella Valley14,787,679 14,109,231 678,448 12,847,127 384,163 12,462,964 49,815 13,191,227 Palo Verde Valley:Transit878,790 878,790 - 823,089 76,040 747,049 3,097 750,146 Unallocated- - - 266,244 - 266,244 1,070 267,314 Total transportation76,249,454 74,020,849 2,228,605 102,038,660 5,463,555 96,575,105 376,383 99,180,093 Auditor/Controller12,000 12,000 - - - - - - Commission administration850,000 850,000 - - - - - - Commission planning2,721,433 2,721,433 - - - - - - SCAG planning680,358 680,358 - - - - - - Total administration and planning 4,263,791 4,263,791 - - - - - - Total apportionments80,513,245 $ 78,284,640 $ 2,228,605 $ 102,038,660 $ 5,463,555 $ 96,575,105 $ 376,383 $ 99,180,093 $ Prior Fiscal YearFiscal Year 2014/15 10 Local Transportation Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Unclaimed Apportionments (Article 3) Year Ended June 30, 2015 Unclaimed Unclaimed Apportionment Interest Apportionment July 1, 2014 Apportionment Reimbursements Disbursements Allocations June 30, 2015 Bicycle and pedestrian projects 4,624,230 $ 1,729,013 $ 3,140 $ 1,747,090 $ 9,266 $ 4,618,559 $ www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 11 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Local Transportation Fund (the Fund) of the County of Riverside, California, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated October 30, 2015. Our report includes an emphasis of matter paragraph indicating that the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Fund’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Fund’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 12 The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Fund’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Newport Beach, CA October 30, 2015 STATE TRANSIT ASSISTANCE FUND OF THE COUNTY OF RIVERSIDE, AS ADMINISTERED BY THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION Financial and Compliance Report Year Ended June 30, 2015 ATTACHMENT 3 Contents Independent Auditor’s Report 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Schedule of Allocations and Disbursements Approved During the Year 8 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 9-10 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Auditor’s Report Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the State Transit Assistance Fund (the Fund) of the County of Riverside, California, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Fund’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund of the County of Riverside, California, as administered by the Commission, as of June 30, 2015, and the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respected to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Fund’s financial statements. The schedule listed in the table of contents as supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2015 on our consideration of the Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund’s internal control over financial reporting and compliance. Newport Beach, CA October 30, 2015 3 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Balance Sheet June 30, 2015 Assets Cash and investments 62,641,173 $ Accounts receivable 3,750,489 Interest receivable 68,035 Total assets 66,459,697 $ Liabilities and Fund Balance Liabilities Accounts payable 5,878,944 $ Total liabilities 5,878,944 Fund Balance Restricted allocations available for programming 41,760,184 Restricted for unclaimed allocations 18,820,569 Total fund balance 60,580,753 Total liabilities and fund balance 66,459,697 $ See Notes to Financial Statements. 4 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Statement of Revenues, Expenditures and Change in Fund Balance Year Ended June 30, 2015 Revenues: Sales taxes 13,484,353 $ Interest 270,989 Total revenues 13,755,342 Expenditures: Transit 8,677,555 Net change in fund balance 5,077,787 Fund balance, beginning of year 55,502,966 Fund balance, end of year 60,580,753 $ See Notes to Financial Statements. State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 5 Note 1. Nature of Operations and Significant Accounting Policies The Riverside County Transportation Commission (the Commission), in its capacity as the transportation planning agency for the County of Riverside, California (the County), is responsible for administering funds provided through the State Transit Assistance Program, which was created in 1979 under Chapter 161 (SB 620) of the California statutes to provide a second source of Transportation Development Act funding for the development of transit systems. The funds are derived from fuel sales tax revenue and are budgeted through legislation and appropriated to the State Controller’s Office (the State) for allocation to local agencies. The accounting policies of the State Transit Assistance Fund (the Fund) conform to accounting principles generally accepted in the United States as applicable to governmental units. A summary of the Commission’s significant accounting policies is as follows: Presentation: The accompanying financial statements of the Fund are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the Fund of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the Fund. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the fiscal year. Those revenues susceptible to accrual include fuel sales tax revenue and interest revenue. Allocations to local agencies: State transit assistance funds are allocated to the operators within the County. Public Utilities Code (PUC) Section 99313 allocates funds to regional transportation planning agencies based on the ratio of area population to state population. PUC Section 99314 allocates funds to public operators based on their share of fares and local support to other operators in the state. The allocations must be made in a resolution adopted by the Commission. Cash: It is the Commission’s policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF) or US Bank for investment until the funds are required for disbursement. Interest income is earned while these funds are deposited. State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 6 Note 1. Nature of Operations and Significant Accounting Policies (Continued) Fund balance restrictions: The Fund reports restricted fund balances to show the level of constraint governing the use of the funds as set forth by enabling State legislation. The restricted fund balance for allocations available for programming represents amounts apportioned but not allocated to claimants. The restricted fund balance for unclaimed allocations represents amounts allocated by the Commission and due to claimants but not yet paid, as claimants have not yet provided the appropriate claim documentation to the Commission as of June 30, 2015. Accounts payable: Accounts payable consist primarily of claims approved by the Commission, but not paid by the Commission, to the appropriate transit operators by June 30, 2015. Expenditures: Expenditures represent funds disbursed to transit operators that have met the eligibility requirements to receive State Transit Assistance Program funds per PUC Sections 99313 and 99314. All disbursements are to be used for transit purposes. Note 2. Cash and Investments Cash and investments at June 30, 2015 consist of the following: Cash and investments with County Treasurer 52,620,955 $ Commission operating investment pool 10,014,827 Cash in bank 5,391 62,641,173 $ The funds in the County Treasury are pooled with those of other entities in the RCPIF and invested in accordance with the County’s investment policy. The funds with the custodian are pooled with those of other Commission operating funds and invested in accordance with the Commission’s investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. The Commission is a voluntary participant in the RCPIF. An Investment Oversight Committee has been established by the County, which acts as a regulator of the RCPIF. As of June 30, 2015, the Fund had $52,620,955 invested in the RCPIF, with an average maturity of 401 days and $10,014,827 invested in the Commission operating investment pool, with an average maturity of 615 days. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission’s investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2015, the Commission’s investment in the RCPIF was rated Aaa-/bf by Moody’s Investors Service and AAA/V1 by Fitch Ratings. The Commission’s investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers’ acceptances and certificates of deposit. State Transit Assistance Fund of the County of Riverside as Administered by the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 7 Note 3. Fund Balance At June 30, 2015, amounts are restricted for apportioned and unallocated amounts and for unpaid allocations by geographic area. For Western County transit programs, commuter rail and bus allocations are in accordance with the Commission’s policy. Restricted for allocations available for programming: Western County: Commuter rail 11,906,364 $ Bus 27,207,657 Coachella Valley 2,617,783 Palo Verde Valley 28,380 41,760,184 Restricted for unclaimed allocations: Western County: Commuter rail 2,583,595 City of Banning 215,223 City of Beaumont 1,727,165 City of Corona 723,942 City of Riverside 357,409 Riverside Transit Agency 3,237,808 Coachella Valley: SunLine Transit Agency 9,956,371 Palo Verde Valley: Palo Verde Valley Transit Agency 19,056 18,820,569 Total fund balance 60,580,753 $ Supplementary Information 8 State Transit Assistance Fund of the County of Riverside, as Administered by the Riverside County Transportation Commission Schedule of Allocations and Disbursements Approved During the Year Year Ended June 30, 2015 California Code of Regulations Current Year Amount Section No. Recipient Allocation Disbursed Reference Western County: City of Banning -$ 322,133$ 6731 City of Beaumont 1,342,675 10,445 6731 City of Corona 1,005,000 2,024,512 6731 City of Riverside 2,400 104,993 6731 Riverside Transit Agency 6,440,158 4,995,851 6730 Commission Commuter Rail Program 250,000 350,000 6730 Total Western County 9,040,233 7,807,934 SunLine Transit Agency 5,287,876 333,761 6730 Coachella Valley Rail 116,000 116,000 6730 Palo Verde Valley Transit Agency 298,003 419,434 6730 Other - 426 14,742,112$ 8,677,555$ www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 9 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the State Transit Assistance Fund (the Fund) of the County of Riverside, California, as administered by the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated October 30, 2015. Our report included an emphasis of mater paragraph indicating that the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the Commission or the County of Riverside, California, as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Fund's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Fund’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 10 The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Fund’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Fund’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Newport Beach, CA October 30, 2015 PROPOSITION 1B REHABILITATION, SAFETY AND SECURITY PROJECT ACCOUNTS, ACCOUNTS OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION Financial and Compliance Report Year Ended June 30, 2015 ATTACHMENT 4 Contents Independent Auditor’s Report 1-2 Financial Statements Balance Sheets 3 Statements of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-7 Supplementary Information Combining Balance Sheets—By Project Combining Statements of Revenues, Expenditures and Change in Account Fund Balance—By Project 8-9 10-11 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 12-13 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Auditor’s Report Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the Proposition 1B Rehabilitation, Safety and Security Project Accounts (the Accounts), accounts of the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Accounts of the Commission as of June 30, 2015, and the changes in its financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the Accounts and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respected to this matter. Other Matters Prior Year Comparative Financial Statements The financial statements of the Accounts as of June 30, 2014, were audited by other auditors whose report dated October 31, 2014, expressed an unmodified opinion on those financial statements. Their report included an emphasis of matter paragraph indicating that the financial statements present only the Accounts and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2014 and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Accounts’ financial statements. The schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2015 on our consideration of the Accounts’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Accounts’ internal control over financial reporting and compliance. Newport Beach, CA October 30, 2015 3 Proposition 1B Rehabilitation, Safety and Security Project Accounts,Accounts of the Riverside County Transportation CommissionBalance SheetsJune 30, 2015 and 2014Assets PTMISEA CTSGP-CTAF TotalPTMISEA CTSGP-CTAF TotalCash and investments in Riverside County PooledInvestment Fund9,494,213 $ 808,849 $ 10,303,062 $ 8,051,991 $ 980,244 $ 9,032,235 $ Interest receivable4,861 672 5,533 4,027 597 4,624 Total assets9,499,074 $ 809,521 $ 10,308,595 $ 8,056,018 $ 980,841 $ 9,036,859 $ Liabilities and Fund BalanceLiabilities Accounts payable27,030 $ 253 $ 27,283 $ 241,177 $ -$ 241,177 $ Total liabilities27,030 253 27,283 241,177 - 241,177 Fund Balance Restricted: Rail projects9,472,044 809,268 10,281,312 7,814,841 980,841 8,795,682 Total fund balance9,472,044 809,268 10,281,312 7,814,841 980,841 8,795,682 Total liabilities and fund balance9,499,074 $ 809,521 $ 10,308,595 $8,056,018 $ 980,841 $ 9,036,859 $ See Notes to Financial Statements.20152014 4 Proposition 1B Rehabilitation, Safety and Security Project Accounts,Accounts of the Riverside County Transportation CommissionStatements of Revenues, Expenditures and Change in Fund BalanceYears Ended June 30, 2015 and 2014PTMISEA CTSGP-CTAF TotalPTMISEA CTSGP-CTAF TotalRevenues: State allocations3,589,325 $ -$ 3,589,325 $ 6,654,941 $ 355,748 $ 7,010,689 $ Interest22,782 3,040 25,822 7,935 2,285 10,220 Total revenues3,612,107 3,040 3,615,147 6,662,876 358,033 7,020,909 Expenditures: Rail1,954,904 174,613 2,129,517 235,119 153,536 388,655 Net change in fund balance1,657,203 (171,573) 1,485,630 6,427,757 204,497 6,632,254 Fund balance, beginning of year7,814,841 980,841 8,795,682 1,387,084 776,344 2,163,428 Fund balance, end of year9,472,044 $ 809,268 $ 10,281,312 $ 7,814,841 $ 980,841 $ 8,795,682 $ See Notes to Financial Statements.20152014 Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 5 Note 1. Nature of Operations and Summary of Significant Accounting Policies Nature of operations: On November 7, 2006, the voters of California approved the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B). Proposition 1B included a state program of funding in the amount of $4 billion and $1 billion to be deposited in the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) and Transit System Safety, Security, and Disaster Response Account (TSSSDRA), respectively. The California Transit Security Grant Program–California Transit Assistance Fund (CTSGP-CTAF) is a TSSSDRA program. The PTMISEA funds, which are administered by the California Department of Transportation (Caltrans), and the CTSGP- CTAF funds, which are administered by the California Emergency Management Agency (CalEMA), are to be made available to project sponsors in California for eligible public transportation projects and related security and safety projects, respectively. The Riverside County Transportation Commission (the Commission) owns and operates five commuter rail stations and a transit center in Riverside County (the County). As a project sponsor, the Commission has applied for and obtained approval for PTMISEA and CTSGP-CTAF funds for various projects related to its commuter rail stations. These funds are accounted for in the Measure A Western County Rail Special Revenue Fund in project accounts (the Accounts). The significant revenue to the Accounts is derived from allocations approved by the Controller of the State of California (the Controller). The accounting policies of the Commission conform to accounting principles generally accepted in the United States of America as applicable to governmental units. A summary of the Commission’s significant accounting policies is as follows: Presentation: The accompanying financial statements of the Accounts are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the PTMISEA and CTSGP-CTAF Accounts of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015 and 2014 and the changes in its financial position for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the PTMISEA and CTSGP-CTAF Accounts. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period, or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include PTMISEA and CTSGP- CTAF allocations and interest revenue. For the year ended June 30, 2015, the Commission recognized revenues related to an allocation of $3,589,325 for the Station Rehabilitation project. For the year ended June 30, 2014, the Commission recognized revenues related to an allocation of $2,454,941 for the Station Rehabilitation project, $4,200,000 for the Coachella Valley Station Development project, and $355,748 for the Station Security project, for a total of $7,010,689. Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 6 Note 1. Nature of Operations and Summary of Significant Accounting Policies (Continued) Funding: Project sponsors may submit applications for funding of eligible transit capital projects to Caltrans or CalEMA, which approve projects for funding related to PTMISEA and CTSGP-CTAF, respectively. PTMISEA eligible projects include rehabilitation, safety or modernization improvements; capital service enhancements or expansions; new capital projects; bus rapid transit improvements; and rolling stock procurement, rehabilitation, expansion or replacement. CTSGP-CTAF eligible projects include capital projects that provide increased protection against a security or safety threat; increase the capacity of transit operators to prepare for disaster-response transportation systems to move people, goods, emergency personnel and equipment in the aftermath of a disaster; and other allowable costs under California Government Code 16727(a). The Controller will disburse funds upon receipt of the approved PTMISEA and CTSGP-CTAF projects. Funds must be encumbered within three years of receipt and must be expended within three years of being encumbered. Cash: It is the Commission’s policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds are so deposited. Fund balance restrictions: The Accounts report restricted account fund balances to show the level of constraint governing the use of the funds. Restricted account fund balances are restricted for specific purposes by third parties. Expenditures: Expenditures represent rail capital projects as identified in PTMISEA and CTSGP-CTAF applications submitted by the Commission. For the year ended June 30, 2015, the Commission incurred qualifying expenditures of $1,168,084 for the CCTV Operations Center project, $786,820 for the Coachella Valley Station Development project, and $174,613 for the Station Security project, for a total of $2,129,517. For the year ended June 30, 2014, the Commission incurred qualifying expenditures of $17,470 for the Station Rehabilitation project, $223,901 for the CCTV Operations Center project, $63,396 for the Coachella Valley Station Development project, $153,536 for Station Security project, and the effect of a revision of ($69,648) to an estimated expenditure based on a final judgment for the Perris Multimodal project, for a total of $388,655. Note 2. Cash and Investments With County Treasurer The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County’s investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. The Commission is a voluntary participant in the pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 7 Note 2. Cash and Investments With County Treasurer (Continued) As of June 30, 2015 and 2014, the Account has $10,303,062 and $9,032,235, respectively, included in the Commission’s investment with the RCPIF, with an average maturity of 401 days and 481 days, respectively. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission’s investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2015 and 2014, the Commission’s investment in the RCPIF was rated Aaa-/bf by Moody’s Investors Service and AAA/V1 by Fitch Ratings. The Commission’s investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers’ acceptances, and certificates of deposit. Supplementary Information 8 Proposition 1B Rehabilitation, Safety and Security Project Accounts,Accounts of the Riverside County Transportation CommissionCombining Balance Sheet—By ProjectJune 30, 2015PerrisMultimodal Station CCTV Operations Coachella Valley StationAssets Facility Rehabilitation Center Station Development Total Security TotalCash and investments in Riverside CountyPooled Investment Fund71,613 $ 6,034,069 $ -$ 3,388,531 $ 9,494,213 $ 808,849 $ 10,303,062 $ Interest receivable59 2,022 - 2,780 4,861 672 5,533 Total assets71,672 $ 6,036,091 $ -$ 3,391,311 $ 9,499,074 $ 809,521 $ 10,308,595 $ Liabilities and Fund BalanceLiabilities Accounts payable-$ -$ -$ 27,030 $ 27,030 $ 253 $ 27,283 $ Total liabilities- - - 27,030 27,030 253 27,283 Fund Balance Restricted: Rail projects71,672 6,036,091 - 3,364,281 9,472,044 809,268 10,281,312 Total fund balance71,672 6,036,091 - 3,364,281 9,472,044 809,268 10,281,312 Total liabilities and fund balance71,672 $ 6,036,091 $ -$ 3,391,311 $ 9,499,074 $ 809,521 $ 10,308,595 $ PTMISEACTSGP-CTAF 9 Proposition 1B Rehabilitation, Safety and Security Project Accounts,Accounts of the Riverside County Transportation CommissionCombining Balance Sheet—By ProjectJune 30, 2014PerrisMultimodal Station CCTV Operations Coachella Valley StationAssetsFacility Rehabilitation CenterStation DevelopmentTotalSecurityTotalCash and investments in Riverside CountyPooled Investment Fund71,373 $ 2,441,771 $ 1,343,866 $ 4,194,981 $ 8,051,991 $ 980,244 $ 9,032,235 $ Interest receivable58 1,061 1,085 1,823 4,027 597 4,624 Total assets71,431 $ 2,442,832 $ 1,344,951 $ 4,196,804 $ 8,056,018 $ 980,841 $ 9,036,859 $ Liabilities and Fund BalanceLiabilities Accounts payable-$ 4,300 $ 178,500 $ 58,377 $ 241,177 $ -$ 241,177 $ Total liabilities- 4,300 178,500 58,377 241,177 - 241,177 Fund Balance Restricted: Rail projects71,431 2,438,532 1,166,451 4,138,427 7,814,841 980,841 8,795,682 Total fund balance 71,431 2,438,532 1,166,451 4,138,427 7,814,841 980,841 8,795,682 Total liabilities and fund balance71,431 $ 2,442,832 $ 1,344,951 $ 4,196,804 $ 8,056,018 $ 980,841 $ 9,036,859 $ PTMISEACTSGP-CTAF 10 Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation CommissionCombining Statement of Revenues, Expenditures and Change in Fund Balance—By ProjectYear Ended June 30, 2015PerrisMultimodal Station CCTV Operations Coachella Valley StationFacility Rehabilitation Center Station Development Total Security TotalRevenues: State allocations-$ 3,589,325 $ -$ -$ 3,589,325 $ -$ 3,589,325 $ Interest241 8,234 1,633 12,674 22,782 3,040 25,822 Total revenues 241 3,597,559 1,633 12,674 3,612,107 3,040 3,615,147 Expenditures: Rail- - 1,168,084 786,820 1,954,904 174,613 2,129,517 Net change in fund balance 241 3,597,559 (1,166,451) (774,146) 1,657,203 (171,573) 1,485,630 Fund balance, beginning of year71,431 2,438,532 1,166,451 4,138,427 7,814,841 980,841 8,795,682 Fund balance, end of year71,672 $ 6,036,091 $ -$ 3,364,281 $ 9,472,044 $ 809,268 $ 10,281,312 $ PTMISEA CTSGP-CTAF 11 Proposition 1B Rehabilitation, Safety and Security Project Accounts, Accounts of the Riverside County Transportation CommissionCombining Statement of Revenues, Expenditures and Change in Fund Balance—By ProjectYear Ended June 30, 2014PerrisMultimodal Station CCTV Operations Coachella Valley StationFacility Rehabilitation Center Station Development Total Security TotalRevenues: State allocations-$ 2,454,941 $ -$ 4,200,000 $ 6,654,941 $ 355,748 $ 7,010,689 $ Interest780 1,061 4,271 1,823 7,935 2,285 10,220 Total revenues 780 2,456,002 4,271 4,201,823 6,662,876 358,033 7,020,909 Expenditures: Rail(69,648) 17,470 223,901 63,396 235,119 153,536 388,655 Net change in account fund balance 70,428 2,438,532 (219,630) 4,138,427 6,427,757 204,497 6,632,254 Fund balance, beginning of year1,003 - 1,386,081 - 1,387,084 776,344 2,163,428 Fund balance, end of year71,431 $ 2,438,532 $ 1,166,451 $ 4,138,427 $ 7,814,841 $ 980,841 $ 8,795,682 $ PTMISEA CTSGP-CTAF www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 12 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Proposition 1B Rehabilitation, Safety and Security Project Accounts (the Accounts), accounts of the Riverside Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated October 30, 2015. Our report includes an emphasis of matter paragraph indicating that the financial statements present only the Accounts and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Accounts’ internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Accounts’ internal control. Accordingly, we do not express an opinion on the effectiveness of the Accounts’ internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Accounts’ financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Accounts’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 13 The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Accounts’ internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Accounts’ internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Newport Beach, CA October 30, 2015 LOW CARBON TRANSIT OPERATIONS PROGRAM ACCOUNT, AN ACCOUNT OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION Financial and Compliance Report Year Ended June 30, 2015 ATTACHMENT 5 Contents Independent Auditor’s Report 1-2 Financial Statements Balance Sheet 3 Statement of Revenues, Expenditures and Change in Fund Balance 4 Notes to Financial Statements 5-6 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 7-8 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Auditor’s Report Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on the Financial Statements We have audited the accompanying financial statements of the Low Carbon Transit Operations Program (LCTOP) Account, an account of the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the LCTOP Account of the Commission as of June 30, 2015 and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the LCTOP Account, and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015 and the changes in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 30, 2015 on our consideration of the LCTOP Account internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the LCTOP Account internal control over financial reporting and compliance. Newport Beach, CA October 30, 2015 3 Low Carbon Transit Operations Program Account, an Account of the Riverside County Transportation Commission Balance Sheet June 30, 2015 Assets Cash and investments in Riverside County Pooled Investment Fund 129,859 $ Total assets 129,859 $ Fund Balance Restricted: Rail operations 129,859 $ Total fund balance 129,859 $ See Notes to Financial Statements. 2015 4 Low Carbon Transit Operations Program Account, an Account of the Riverside County Transportation Commission Statement of Revenues, Expenditures and Change in Fund Balance Year Ended June 30, 2015 Revenues: State allocations 129,859 $ Total revenues 129,859 Fund balance, beginning of year - Fund balance, end of year 129,859 $ See Notes to Financial Statements. 2015 Low Carbon Transit Operations Program Account, an Account of the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 5 Note 1. Nature of Operations and Summary Significant Accounting Policies Nature of Operations: In 2014, the California Legislature established Senate Bill 862 (SB 862), Low Carbon Transit Operations Program (LCTOP), one of several programs that is part of the Transit, Affordable Housing, and Sustainable Communities Program. LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities. For agencies whose service area includes disadvantaged communities, at least 50 percent of the total moneys received shall be expended on projects that will benefit disadvantaged communities. The accounting policies of the Riverside County Transportation Commission (Commission) conform to accounting principles generally accepted in the United States as applicable to governmental units. A summary of the Commission’s significant accounting policies is as follows: Presentation: The accompanying financial statements of the LCTOP Account are intended to present the financial position and the changes in financial position of only that portion of the governmental activities of the Commission that is attributable to the transactions of the LCTOP Account of the Commission. They do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis of accounting: In accordance with the requirements for governmental funds, the modified accrual basis of accounting is followed in the LCTOP Account. Under the modified accrual basis of accounting, expenditures are recorded when they are expected to be liquidated with expendable available resources, and revenue is recorded when it becomes both measurable and available. “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Commission considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Those revenues susceptible to accrual include LCTOP Account allocations and interest revenue. For the year ended June 30, 2015, the Commission recognized revenues related to an allocation of $129,859 for the Perris Valley Line station operations. Funding: Project sponsors may submit expenditure proposals for funding of LCTOP to Caltrans and the Air Resource Board to determine compliance with the requirements of SB 862 and the LCTOP guidelines. Caltrans submits a final list of approved expenditures to the State Controller’s Office, and the approved amounts of funds will be available for release, not to exceed 75 percent of each eligible recipient’s share of the full appropriation, with the remaining 25 percent available for release by fiscal year end. Cash: It is the Commission’s policy to deposit all funds received in the Riverside County Pooled Investment Fund (RCPIF) for investment until the funds are required for disbursement. Interest income is earned while these funds are deposited. Fund balance restrictions: The LCTOP Account reports restricted account fund balance to show the level of constraint governing the use of the funds. Restricted account fund balances are restricted for specific purposes by third parties. Expenditures: Expenditures represent rail operations as identified in the LCTOP application submitted by the Commission. Low Carbon Transit Operations Program Account, an Account of the Riverside County Transportation Commission Notes to Financial Statements June 30, 2015 6 Note 2. Cash and Investments with County Treasurer The funds in the RCPIF are pooled with those of other entities and invested in accordance with the County’s investment policy. These pooled funds are carried at fair value. Fair value is based on quoted market prices and/or direct bids, when needed, from government dealers on some variable or floating rate items. The Commission is a voluntary participant in the pool. An Investment Oversight Committee has been established by the County, which acts as a regulator of the pool. As of June 30, 2015, the LCTOP Account had $129,859 invested in the RCPIF, with an average maturity of 401 days. Interest rate risk: While the Commission does not have a formal policy related to the interest rate risk of investments, the Commission’s investment policy follows the California Government Code as it relates to limits on investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Credit risk: As of June 30, 2015, the Commission’s investment in the RCPIF was rated Aaa-/bf by Moody’s Investors Service and AAA/V1 by Fitch Ratings. The Commission’s investment policy only requires credit quality ratings for repurchase agreements, U.S. corporate debt, commercial paper, bankers’ acceptances and certificates of deposit. www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 7 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Low Carbon Transit Operations Program (LCTOP) Account, an account of the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, and have issued our report thereon dated October 30, 2015. Our report includes an emphasis of matter indicating that the financial statements present only the LCTOP Account, and do not purport to, and do not, present fairly the financial position of the Commission as of June 30, 2015 and the changes in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the LCTOP Account internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the LCTOP Account internal control. Accordingly, we do not express an opinion on the effectiveness of the LCTOP Account internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the LCTOP Account financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the LCTOP Account financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 8 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the LCTOP Account internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the LCTOP Account internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Newport Beach, CA October 30, 2015 RIVERSIDE COUNTY TRANSPORTATION COMMISSION Single Audit Report For the Year Ended June 30, 2015 ATTACHMENT 6 Table of Contents Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 1-2 3-4 Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards 5 6 Schedule of Findings and Questioned Costs Summary Schedule of Prior Year Audit Findings 7-8 9 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements, and have issued our report thereon dated October 30, 2015. Our report includes an emphasis of matter paragraph indicating that the Commission adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment to GASB No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Commission’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Newport Beach, CA October 30, 2015 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 3 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A -133 Board of Commissioners Riverside County Transportation Commission Riverside, CA Report on Compliance for the Major Federal Program We have audited the Riverside County Transportation Commission’s (the Commission) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Commission’s major federal program for the year ended June 30, 2015. The Commission’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal program. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the Commission’s major federal program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the major federal program occurred. An audit includes examining, on a test basis, evidence about the Commission’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination of the Commission’s compliance. Opinion on the Major Federal Program In our opinion, the Riverside County Transportation Commission complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2015. Report on Internal Control over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Commission’s internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control over compliance. 4 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Repot on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Commission as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements. We issued our report thereon dated October 30, 2015, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements, which collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information had been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Newport Beach, CA October 30, 2015 Riverside County Transportation Commission Schedule of Expenditures of Federal Awards Year Ended June 30, 2015 Federal Grantor/Program or Cluster Title/ Pass-Through Grantor/ Catalog of Federal Domestic Assistance Number Identifying Number Federal Expenditures US Department of Transportation: Highway Planning and Construction Program: Pass-through State Department of Transportation: 60/I215 East Junction 20.205 07-31-082-01 971$ State Route 91 Utilities 20.205 08-31-002-04 190,463 SR91/SR71 Junction 20.205 08-31-033-04 709,764 Regional Rideshare 20.205 08-41-042-00 85,540 ARRA - 74/I215 Interchange ARRA-20.205 10-31-025-03 72,945 Total Highway Planning and Construction Program 1,059,683 Transportation Infrastructure Finance and Innvoation Act (TIFIA) Program: Direct Program, TIFIA SR91 Project 20.223* TIFIA-2012-1006A 48,904,095 Total TIFIA Program 48,904,095 Federal Transit Capital Investment Grant: Pass-through Metrolink: Commuter Rail 5 Year Rehab 5309 20.500 CA-05-0268-00 552,881 Federal Transit Urbanized Area Formula Grant: Direct Program, Perris Valley Line 20.507 CA-95-X202-00/CA-03-0812-00 53,516,191 Total Federal Transit Cluster 54,069,072 Public Transportation Research: Pass-through State Department of Transportation: Rising Stars in Transit 20.514 MOU M-005-13/13-25-106-00 16,944 Total Public Transportation Research 16,944 Job Access and Reverse Commute Program (JARC): Pass-through SunLine Transit Agency: JARC Grant 5316 20.516 14-26-060-00 9,535 New Freedom Program: Pass-through Riverside Transit Agency: New Freedom 5317 20.521 14-26-059-00 33,893 Total Transit Services Program Cluster 43,428 Total expenditures of federal awards 104,093,222$ * Denotes major program See Notes to Schedule of Expenditures of Federal Awards 5 Riverside County Transportation Commission Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2015 6 Note 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the activity of all federal award programs of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2015. The Schedule includes federal awards received directly from federal agencies, as well as federal awards passed through other agencies. The Commission’s reporting entity is defined in Note 1 to the Commission’s basic financial statements. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not, present the financial position of the Commission. The information in this Schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2. Summary of Significant Accounting Policies The accompanying Schedule is presented on the modified-accrual basis of accounting. Expenditures are recognized following the cost principles contained in Office of Management and Budget (OMB) Circular A- 87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or limited as to reimbursement. Note 3. Subrecipients Of the federal expenditures presented in the Schedule, the Commission provided federal awards under the Federal Transit Cluster grant (CFDA #20.500) to a subrecipient totaling $552,881 for the fiscal year ended June 30, 2015. Riverside County Transportation Commission Schedule of Findings and Questioned Costs Year Ended June 30, 2015 7 I. Summary of Auditor’s Results Financial Statements Type of Auditor’s Report Issued: Unmodified Internal control over financial reporting:  Material weaknesses(es) identified? Yes X No  Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major federal programs:  Material weaknesses(es) identified? Yes X No  Significant deficiency(ies) identified that are not considered to be material weaknesses? Yes X None Reported Type of auditor’s report issued on compliance for major federal programs: Unmodified  Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of OMB Circular A-133? Yes X No Identification of major federal programs: CFDA Number(s) Name of Federal Program or Cluster 20.223 Transportation Infrastructure Finance and Innovation Act (TIFIA) Program Dollar threshold used to distinguish between Type A and Type B programs: $1,655,674 Auditee qualified as low-risk auditee? X Yes No Riverside County Transportation Commission Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2015 8 II. Financial Statement Findings A. Internal Control Matters None reported. B. Compliance Findings None reported. III. Findings And Questioned Costs for Federal Awards A. Internal control None reported. B. Compliance Findings None reported. Riverside County Transportation Commission Summary Schedule of Prior Year Audit Findings Year Ended June 30, 2015 9 Prior Year Federal Award Findings Finding No. Federal Program Name CFDA No. Compliance Requirement Status of Corrective Action 2014-1 Federal Transit Formula Grant 20.507 Davis Bacon Implemented. www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 Independent Auditor’s Report on Compliance With Aspects of Contractual Agreements Board of Commissioners Riverside County Transportation Commission Riverside, CA We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Riverside County Transportation Commission (the Commission) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Commission’s basic financial statements, and have issued our report thereon dated October 30, 2015. In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply with the terms, covenants, provisions or conditions of Sections 6.2(g) and 6.2(I) contained in the Reimbursement Agreement, dated October 1, 2014, with State Street Bank and Trust Company, a wholly-owned subsidiary of State Street Corporation, related to the Commercial Paper Notes (Limited Tax Bonds) Series A, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Commission’s noncompliance with the above- referenced terms, covenants, provisions or conditions of the Reimbursement Agreement, insofar as they relate to accounting matters. The report is intended solely for the information and use of the Board of Commissioners and management of the Commission and State Street Bank and Trust Company and is not intended to be, and should not be, used by anyone other than these specified parties. Newport Beach, CA October 30, 2015 ATTACHMENT 7 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 November 9, 2015 To the Audit Ad Hoc Committee Riverside County Transportation Commission Riverside, CA We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2015. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards and OMB Circular A-133, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated July 8, 2015. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Commission are described in Note 1 to the financial statements. As discussed in Note 7 to the basic financial statements, the Commission implemented Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions– an Amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an Amendment of GASB Statement No. 68, effective July 1, 2014. The implementation of these Statements resulted in a restatement of net position of the governmental activities opinion unit as of July 1, 2014, in the amount of $5,475,607. Our opinion was not modified with respect to this matter. In addition, the Commission implemented GASB Statement No. 69, Government Combinations and Disposals of Government Operations. However, implementation of this Standard did not materially impact the Commission. The application of existing policies was not changed during 2015. We noted no transactions entered into by the Commission during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Commission’s financial statements were: Fair values of investments are based on quoted market prices from independent published sources and fair values of derivative instruments are based on swap valuations performed by independent sources; Depreciation estimates for capital assets are based on estimated useful lives for capital assets; Pollution remediation obligations are based on management’s analysis of expected outlays for hazardous substance remediation and assumes there are no expected recoveries to offset the remediation costs; ATTACHMENT 8 2 Actuarial valuations of annual required contributions and the funded status of the other postemployment benefits (OPEB) plan is based on actuarial calculations, which incorporate actuarial methods and assumptions adopted by Board of the Commissioners of the Riverside County Transportation Commission Valuations of actuarially determined contributions and net pension liability for the pension plan are based on actuarial calculations, which incorporate actuarial methods and assumptions adopted by the Board of Commissioners; and Costs of the SR-91 and the I-15 Corridor Improvement Project that are capitalized versus not capitalized are based upon management’s allocation of the portion of the project costs that relate to the toll lanes that the Commission will own and operate and the general purpose lanes that will not be owned or operated by the Commission. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. In addition, none of the misstatements detected as a result of audit procedures or by management’s closing process and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated October 30, 2015. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Commission’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 3 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Commission’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management’s discussion and analysis, budgetary comparison schedules and information related to the pension and other postemployment benefit plans which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual nonmajor fund financial statements, budgetary comparison schedules and schedules of expenditures, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of Audit Ad Hoc Committee, the Board of Commissioners and management of the Commission and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Newport Beach, CA Attachment A 4 Riverside County Transportation Commission Summary of Unadjusted Audit Differences As of June 30, 2015 Opinion Unit(s) Description Debit Credit 1 Highways Expenditure 1,600,000$ Accounts Payable 1,600,000$ 2 Highways Expenditure 757,000$ Allowance for doubtful accounts 757,000$ To accrue for estimated payables at June 30, 2015, in connection with the 91 Project. To record allowance at June 30, 2015, for outstanding receivables related to the 91 Project. Governmental Activities & Measure A Western County Governmental Activities & Measure A Western County RIVERSIDE COUNTY TRANSPORTATION COMMISSION Independent Accountant’s Report on Applying Agreed-Upon Procedures for Appropriations Limit Calculation For the Year Ended June 30, 2015 ATTACHMENT 9 www.mgocpa.com Certified Public Accountants Sacramento Walnut Creek Oakland Los Angeles Century City Newport Beach San Diego Macias Gini & O’Connell LLP 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 1 Independent Accountant’s Report on Applying Agreed-Upon Procedures Board of Commissioners Riverside County Transportation Commission Riverside, CA We have performed the procedures enumerated below to the accompanying Appropriations Limit Calculation of the Riverside County Transportation Commission (the Commission) for the year ended June 30, 2015. These procedures, which were agreed to by the Commission and the League of California Cities (the League) as presented in the publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist the Commission in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The Commission’s management is responsible for the Appropriations Limit Calculation. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the Commission and the League. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings are as follows: 1. We obtained the completed internal calculations from management and compared the limit and annual adjustment factors included in those calculations to the limit and annual adjustment factors that were adopted by resolution of the Board of Commissioners. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Board of Commissioners. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Calculation, we added line A, last year’s limit, to line E, total adjustments, and compared the resulting amount to line F, current year’s limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Calculation to the supporting calculations described in item 1 above. Finding: No exceptions were noted as result of our procedures. 4. We compared the prior year Appropriations limit presented in the accompanying Appropriations Limit Calculation to the prior year Appropriations Limit adopted by the Board of Commissioners during the prior year. Finding: No exceptions were noted as a result of our procedures. 2 We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Calculation of the Commission. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the information and use of the Board of Commissioners and management of the Commission, and is not intended to be, and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. Newport Beach, CA October 30, 2015 Riverside County Transportation Commission Appropriations Limit Calculation Year Ended June 30, 2015 3 Amount Source A. Last year's limit $370,426,988 B. Adjustment factors: 1. Population change 1.011200000 State Finance 2. Per capita change 0.997700000 State Finance 3. Total adjustments [(B.1 x B.2)-1.0]0.008874240 C. Annual adjustment 3,287,258 (B.3 X A) D. Other adjustments: 1. Lost responsibility (-)- 2. Transfer to private (-)- 3. Transfer to fees (-)- 4. Assumed responsibility (+)- - E. Total adjustments 3,287,258 (C + D) F. This year's limit 373,714,246$ (A + E) Sacramento Walnut Creek Oakland LA/Century City San Diego Seattle www.mgocpa.com Newport Beach 4675 MacArthur Court, Suite 600 Newport Beach, CA 92660 949.221.0025 1 Independent Accountant’s Report on Applying Agreed-Upon Procedures Board of Commissioners Riverside County Transportation Commission Riverside, CA We have performed the procedures enumerated below, which were agreed to by the Riverside County Transportation Commission (Commission), solely to assist you with respect to the purchase of gift cards or coupon incentives and the payment of incentives related to the Commuter Assistance Program (Program) administered by Inland Transportation Services (ITS) for the eleven months ended May 31, 2015. The Commission is responsible for the administration and operations of the Program. This agreed- upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the party specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. As background information for this engagement to perform agreed-upon procedures, we were provided with: Resolution No. 03-025, Resolution of the Commission Amending Guidelines for the Administration of the Measure A Funded Commuter Incentive Projects as Part of its Program, and Agreement No. 09- 41-079-00, Agreement for Operation and Implementation Services of the Commuter Assistance Between ITS and the Commission, entered into as of July 1, 2009 and related amendments. In addition, we received an explanation of the ITS registration process with the employer and employee from the program manager of ITS. The procedures and related findings are as follows: 1)We obtained a listing of all disbursements recorded by the Commission to vendors for the purchase of gift cards for the eleven months ended May 31, 2015 and judgmentally select a sample of 10 items for testing (see Exhibit 1). Our procedures and findings related to Exhibit 1 are as follows: a)We agreed the amount recorded as disbursed by the Commission to cancelled checks without exception. b)We agreed the amount recorded as disbursed to ITS check requests without exception. c)We agreed the amount recorded and the payee to the log of requested gift cards maintained by ITS without exception. 2)We obtained the “Commission Payments by Employer" reports that list recorded disbursements made to recipients by ITS for the eleven months ended May 31, 2015 and judgmentally selected a sample of 10 items for testing (see Exhibit 2). Our procedures and findings related to Exhibit 2 are as follows: a)We obtained the Employer Information Form and Statement of Participation (SOP) for the employer indicating its participation with ITS as a participant and observed that it was properly completed and approved. No exceptions were noted. ATTACHMENT 10 2 b)We obtained the Employee Enrollment Form from ITS indicating the employee was registered with ITS as a participant and observed that it was properly completed and approved. No exceptions were noted. c)We obtained the Employee Claim Form, observed the claim form was approved, and compared the claim amount to the ITS disbursement listing without exception. d)We recalculated the number of days the employee participated in each rideshare mode, obtained the incentive earned for each rideshare mode and recalculated the incentive and compared it to the claim form without exception. e)We compared the daily amount of reimbursement per mode of transportation to the amount approved in Resolution No. 03-025 without exception. f)We compared the recorded disbursement amount per the ITS Incentive Payment Report to the employer transmittal letter received by ITS without exception. 3)We compared ITS' total gift card inventory balance from the gift card inventory schedules provided by ITS as of June 1, 2015 to the actual gift cards maintained by ITS. As reported on the inventory schedules as of June 1, 2015, we selected 100% of the gift cards for recounting and noted the following counts without exception: Amazon Stater Bros.Vons Total RCTC Advantage Rideshare Program 35$ 1$ 7,440$ 7,476$ SANBAG Option Rideshare Program 3,580 7,771 6,200 17,551 RCTC Mobile Source Air Pollution Reduction Review Committee (MSRC) Rideshare Program 1,690 1,415 2,620 5,725 SANBAG MSRC Rideshare Program 1,180 4,570 4,205 9,955 40,707$ We were not engaged to, and did not, conduct an examination, the objective of which would be the expression of an opinion on the specified elements, accounts or items thereof related to the Program. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the Board of Commissioners and management of the Riverside County Transportation Commission, and is not intended to be and should not be used by anyone other than those specified parties. Newport Beach, CA June 16, 2015 Riverside County Transportation Commission Schedule of Selected Purchases of Gift Cards by the Contractor Eleven Months Ended May 31, 2015 Project Vendor Voucher Date Amount Check # RCTC Advantage Amazon 9/22/2014 2,500$ 65227 RCTC Advantage Stater Bros. 12/1/2014 10,000 66041 RCTC Advantage Amazon 12/1/2014 2,500 66042 RCTC Advantage Vons 12/1/2014 15,000 66045 SANBAG Option Amazon 9/22/2014 3,000 65227 SANBAG Option Stater Bros. 12/1/2014 15,000 66041 SANBAG Option Vons 12/1/2014 10,000 66045 RCTC MSRC Stater Bros. 9/22/2014 5,000 65225 RCTC MSRC Vons 9/22/2014 5,000 65234 RCTC MSRC Vons 9/22/2014 5,000 65234 Exhibit 1 3 Riverside County Transportation Commission Schedule of Selected Employee Incentive Payments Made by the Contractor Eleven Months Ended May 31, 2015 Employee Initials Employer Name Incentive Type Commute Mode Disbursement Date Amount D. F. Fresh and Easy Amazon Carpool 10/8/2014 115$ R. B. Defense Media Activity Vons Vanpool 5/19/2015 110 K. H. Randstad Staffing-Ingram Micro Vons Carpool 4/2/2015 130 V. C. Loma Linda University Stater Bros. Carpool 7/16/2014 115 V. G. Soboba Casino Stater Bros. Carpool 3/13/2015 90 M. A. La-Z-Boy West Amazon Carpool 10/13/2014 125 H. B. Ingram Micro Vons Carpool 12/2/2014 130 J. R. Cal Poly Pomona Stater Bros. Vanpool 9/8/2014 130 J. C. Luxfer Gas Cylinders Stater Bros. Public Bus 12/8/2014 125 J. A. University of CA - Riverside Stater Bros. Vanpool 4/3/2015 125 Exhibit 2 4 ATTACHMENT 11 ATTACHMENT 12 AGENDA ITEM 8C RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Audit Ad Hoc Committee Theresia Trevino, Chief Financial Officer THROUGH: Anne Mayer, Executive Director SUBJECT: Proposition 1B Corridor Mobility Improvement Account Audit Report for Interstate 215 South Widening Project AUDIT AD HOC COMMITTEE AND STAFF RECOMMENDATION: This item is for the Commission to receive and file the Corridor Mobility Improvement Account (CMIA) Program Proposition 1B Bond-Funded Project EA No. 0F161/P2505-0062 Audit Report for the Interstate 215 South widening project. BACKGROUND INFORMATION: The Commission received Proposition 1B CMIA funds totaling approximately $9.65 million as reimbursement for the I-215 South widening project under Project EA No. 0F161/P2505-0062. On behalf of an audit request from Caltrans, the State Controller’s Office performed an audit of the Commission’s financial management system relative to the project’s funding and reimbursement from the Proposition 1B CMIA Program. The audit did not disclose any findings. Attachment: Corridor Mobility Improvement Account (CMIA) Program Proposition 1B Bond- Funded Project EA No. 0F161/P2505-0062 Audit Report Agenda Item 8C 23 RIVERSIDE COUNTY TRANSPORTATION COMMISSION Audit Report CORRIDOR MOBILITY IMPROVEMENT ACCOUNT PROGRAM PROPOSITION 1B BOND-FUNDED PROJECT EA No. 0F161/P2505-0062 July 1, 2007, through March 31, 2015 BETTY T. YEE California State Controller June 2015 24 BETTY T. YEE California State Controller June 23, 2015 Laurine Bohamera, Chief Audits and Investigations California Department of Transportation P.O. Box 942874 Sacramento, CA 94274-0001 Dear Ms. Bohamera: The State Controller’s Office (SCO) audited the Riverside County Transportation Commission’s (implementing agency) financial management system relative to projects funded and reimbursed by Proposition 1B bond funds during the audit period of July 1, 2007, through March 31, 2015. The SCO performed the audit in accordance with generally accepted government auditing standards and based on audit procedures performed, we determined that the implementing agency’s accounting system and internal controls appear adequate to accumulate and segregate reasonable, allocable, and allowable project costs as required by Title 2, Code of Federal Regulations, Part 225, and California Department of Transportation (Caltrans) and Transportation Commission (Commission) program guidelines and agreements. We audited the Proposition 1B bond funded project “I-215 Widening (Add One Mixed Flow Lane in Each Direction)” and determined that:  The implementing agency complied with applicable federal and state procurement requirements as required by Title 49, Code of Federal Regulations, Part 18, and/or California Public Contract Code sections 10140-10141.  The project costs incurred and reimbursed were in compliance with required Caltrans and Commission program guidelines, procedures, agreements, or approved amendments; contract provisions; and/or applicable state and federal laws and regulations.  The project deliverables (outputs) and outcomes were consistent with the project scope, schedule, and benefits described in the executed project baseline agreements or approved amendments thereof. Schedule 1 of this report is a summary of project costs programmed, approved, expended, and audited during the audit period. 25 Laurine Bohamera, Chief -2- June 23, 2015 Our audit did not disclose any findings. If you have any questions, please contact Andrew Finlayson, Chief, State Agency Audits Bureau, by telephone at (916) 324-6310. Sincerely, Original signed by JEFFREY V. BROWNFIELD, CPA Chief, Division of Audits JVB/as cc: Jan Goto, Audit Manager Division of Audits – Bond Unit State Controller’s Office Albert Marroquin, Auditor-in-Charge Division of Audits – Bond Unit State Controller’s Office 26 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program Contents Audit Report Summary ............................................................................................................................ 1 Background ........................................................................................................................ 1 Objectives, Scope, and Methodology ............................................................................... 2 Conclusion .......................................................................................................................... 3 Views of Responsible Officials .......................................................................................... 4 Restricted Use .................................................................................................................... 4 Schedule 1—Summary of Project Costs Approved, Expended, and Audited .................. 5 27 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program -1- Audit Report The State Controller’s Office (SCO) audited the Riverside County Transportation Commission’s (implementing agency) financial management system relative to projects funded and reimbursed by Proposition 1B bond funds during the audit period of July 1, 2007, through March 31, 2015. The SCO performed the audit in accordance with generally accepted government auditing standards and based on audit procedures performed, we determined that the implementing agency’s accounting system and internal controls appear adequate to accumulate and segregate reasonable, allocable, and allowable project costs as required by Title 2, Code of Federal Regulations, Part 225 (2 CFR 225), and California Department of Transportation (Caltrans) and Transportation Commission (Commission) program guidelines and agreements. We audited the Proposition 1B bond-funded project “I-215 Widening (Add One Mixed Flow Lane in Each Direction)” and determined that:  The implementing agency complied with applicable federal and state procurement requirements as required by Title 49, Code of Federal Regulations, Part 18 (49 CFR 18), and/or California Public Contract Code sections 10140–10141.  The project costs incurred and reimbursed were in compliance with required Caltrans and Commission program guidelines, procedures, agreements, or approved amendments; contract provisions; and/or applicable state and federal laws and regulations.  The project deliverables (outputs) and outcomes were consistent with the project scope, schedule, and benefits described in the executed project baseline agreements or approved amendments thereof. Our audit did not disclose any findings. In accordance with Caltrans and Commission executed project agreement(s) or approved amendments, the project “I-215 Widening (Add One Mixed Flow Lane in Each Direction)” was programmed and approved to receive $10,297,000 in Proposition 1B bond funds, for one or more phases of work, under the Corridor Mobility Improvement Account program. The implementing agency is responsible for implementation and successful completion of each project component and activities as defined in the project’s baseline agreement. The project’s completion date was November 21, 2013. Summary Background 28 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program -2- This audit was performed by the SCO on behalf of Caltrans (Audit Request No. P2505-0062). The authority to conduct this audit is given by:  Interagency Agreement No. 77A0027, dated December 1, 2007, between the SCO and Caltrans, which provides that the SCO will perform audits of project expenditures that were funded and reimbursed by the Proposition 1B Bond Fund to ensure compliance with Caltrans and Commission Proposition 1B program guidelines.  Government Code section 12410, which states, “The Controller shall superintend the fiscal concerns of the state. The Controller shall audit all claims against the state, and may audit the disbursement of any state money, for correctness, legality, and for sufficient provisions of law for payment.” The SCO audited the implementing agency’s financial management system relative to projects funded and reimbursed by the Proposition 1B Bond Fund during the audit period of July 1, 2007, through March 31, 2015. The objectives of our audit were to determine whether:  The implementing agency’s accounting system and internal controls were adequate to accumulate and segregate reasonable, allocable, and allowable project costs as required by 2 CFR 225, and Caltrans and Commission program guidelines, procedures, project agreements, or approved amendments.  The implementing agency complied with applicable federal and state procurement requirements as required by 49 CFR 18, California Public Contract Code sections 10140–10141, and/or provisions stated in the contract.  The project costs incurred and reimbursed were in compliance with required Caltrans and Commission program guidelines, procedures, agreements, or approved amendments; contract provisions; and/or applicable state and federal laws and regulations.  The project deliverables (outputs) and outcomes were consistent with the project scope, schedule, and benefits described in the executed project baseline agreements or approved amendments thereof. To achieve our audit objectives, we performed the following audit procedures:  Reviewed the implementing agency’s prior audits and single audit reports;  Reviewed the implementing agency’s written policies and procedures relating to accounting systems, construction project management, and contract management; and  Interviewed employees, completed the internal control questionnaire, and performed a system walk-through in order to gain an Objectives, Scope, and Methodology 29 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program -3- understanding of the implementing agency’s internal controls, accounting systems, timekeeping and payroll systems, and billing processes related to transportation projects; specifically, projects funded by Proposition 1B. For the project(s) under review, we performed the following audit procedures:  Obtained project files and reviewed preliminary information to ensure that the implementing agency complied with applicable state and federal procurement requirements;  Obtained project expenditure reports, selected a sample of activities that were funded by Proposition 1B, and obtained and reviewed supporting documentation to ensure that project expenditures were reasonable, allocable, and allowable in accordance with Caltrans and Commission program guidelines, procedures, agreements, and applicable state and federal requirements;  Reviewed significant contract change orders to ensure that they were properly approved and supported;  Reviewed project final reports, close-out documents, finance letters, and baseline agreements to ensure that variances or changes to the project’s scope, schedule, costs, and benefits were properly approved and supported; and  Reviewed the project payment history file and/or invoices sent to the Caltrans accounting office to ensure that the implementing agency properly prepared and/or billed Caltrans for reimbursement of project expenditures as required by Caltrans’ local assistance procedures. We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. We did not audit the implementing agency’s financial statements. We limited our audit scope to planning and performing audit procedures necessary to achieve our audit objectives. We determined that the implementing agency’s accounting system and internal controls appear adequate to accumulate and segregate reasonable, allocable, and allowable project costs as required by 2 CFR 225, and Caltrans and Commission program guidelines and agreements. We audited the Proposition 1B bond-funded project “I-215 Widening (Add One Mixed Flow Lane in Each Direction)” and determined that: Conclusion 30 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program -4-  The implementing agency complied with applicable federal and state procurement requirements required by 49 CFR 18, California Public Contract Code sections 10140–10141, and/or provisions stated in the contract.  The project costs incurred and reimbursed were in compliance with required Caltrans and Commission program guidelines, procedures, agreements, or approved amendments; contract provisions; and/or applicable state and federal laws and regulations.  The project deliverables (outputs) and outcomes were consistent with the project scope, schedule, and benefits described in the executed project baseline agreements or approved amendments thereof. Our audit did not disclose any findings. We discussed our audit results with the Riverside County Transportation Commission’s representative on May 6, 2015. Theresia Trevino, Chief Financial Officer, responded by email, agreed with the audit results, and stated that the audit report may be issued as final. This report is solely for the information and use of the Riverside County Transportation Commission, Caltrans, and the SCO; it is not intended to be and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. Original signed by JEFFREY V. BROWNFIELD, CPA Chief, Division of Audits June 23, 2015 Restricted Use Views of Responsible Officials 31 Audit Request No. P2505-0062 Riverside County Transportation Commission Corridor Mobility Improvement Account Program -5- Schedule 1— Summary of Project Costs Approved, Expended, and Audited July 1, 2007, through March 31, 2015 Project No./EA No.: 0800000115/0F161 Project Information: I-215 Widening (Add One Mixed Flow Lane in Each Direction) Project Financial Information: Phases Reimbursed by Proposition 1B Bond Fund Programmed and Approved Expended Audited Variance * Construction $ 10,297,000 $ 9,647,745 $9,647,745 $ 649,255 Total $ 10,297,000 $ 9,647,745 $9,647,745 $ 649,255 Project Delivery Baseline: Project Phase(s): Baseline Actual Beginning construction 12/1/10 12/08/10 End construction 12/1/13 11/21/13 Beginning closeout 12/3/13 11/21/13 End closeout 12/1/14 07/01/14 *Funds were de-obligated 32 State Controller’s Office Division of Audits Post Office Box 942850 Sacramento, CA 94250-5874 http://www.sco.ca.gov S15-BAU-0011 33 AGENDA ITEM 8D RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Michele Cisneros, Deputy Director of Finance THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Financial Statements STAFF RECOMMENDATION: This item is for the Commission to receive and file the Quarterly Financial Statements for the period ended September 30, 2015. BACKGROUND INFORMATION: During the first three months of the fiscal year, staff monitored the revenues and expenditures of the Commission. The first quarter of the year is primarily directed toward completing fiscal year-end closing activities. Staff expects most of the categories to present a more realistic outlook beginning in the second quarter. The operating statement shows the sales tax revenues for the first quarter at 6 percent of the budget. This is a result of Governmental Accounting Standards Board (GASB) Statement No. 33. GASB 33 requires sales tax revenues to be accrued for the period in which it is collected at the point of sale. The State Board of Equalization (SBOE) collects the Measure A funds and remits these funds to the Commission after the reporting period for the businesses. This creates a two-month lag in the receipt of revenues by the Commission. Accordingly, these financial statements reflect the revenues related to collections for July 2015. On a cash basis, the Measure A and Local Transportation Fund (LTF) sales tax revenues are 3.96 and 4.10 percent higher, respectively, than the same period last fiscal year. State Transit Assistance Fund receipts for the first quarter have not yet been submitted by the SBOE. Staff will continue to monitor the trends in the sales tax receipts and report to the Commission any necessary adjustments. Federal, state, and local revenues are on a reimbursement basis. The Commission will receive these revenues as eligible project costs are incurred and invoiced to the respective agencies. The negative revenue amounts for federal, state, and local reimbursements reflect the reversal of FY 2014/15 accrued revenues at the beginning of FY 2015/16 in excess of amounts billed during the first quarter. Reimbursement invoices for expenditures through the first quarter will be prepared and submitted in the second quarter. Agenda Item 8D 34 During the FY 2015/16 budget process, the Commission took a conservative approach to estimate the Transportation Uniform Mitigation Fee (TUMF) revenues of $12 million passed through from the Western Riverside Council of Governments (WRCOG). The Commission received TUMF receipts through July 2015. The budgeted balance of $53,800 relates to TUMF zone reimbursements from WRCOG for the State Route 74/Interstate 215 interchange project. Other revenues include property management revenues generated from properties acquired in connection with the SR-91 Corridor Improvement Project (91 Project) and various rail properties. The Commission took a conservative approach in estimating investment income for FY 2015/16, as a result of flat interest yields on investment balances. Investment income is higher in the first quarter primarily as a result of the investment of sales tax and toll revenue bond proceeds. The expenditure and other financing sources/uses categories are in line overall with the expectations of the budget with the following exceptions. • Professional services are under budget due to unused budget authority for rail and station development planning and various projects’ legal services; • Program operations are under budget due to unused budget authority for 91 Project permit activities, motorist and commuter assistance program operations, and highway and rail program management; • Capital project expenditures are generally affected by lags in invoices submitted by contractors and consultants, as well as other issues encountered during certain phases of the projects. The negative expenditure amount for right of way/land reflect the reversal of FY 2014/15 accrued expenditures at the beginning of FY 2015/16 in excess of amounts paid during the first quarter; • Special studies are under budget due to unused budget authority for strategic assessment studies; • Local streets and roads are related to the timing of Measure A sales tax revenues as previously explained. These financial statements reflect expenditures made to the local jurisdictions related to collections through July 2015; • Regional arterials expenditures primarily represent expenditures for the highways and regional arterial program administered by the Coachella Valley Association of Governments (CVAG). CVAG requests reimbursements from the Commission based on available funds and sufficient budget authority; • Debt service principal payments are made annually on June 1, while interest payments are made semiannually on December 1 and June 1, except for the 2009 Sales Tax Revenue Bonds (variable rate) as those interest payments are monthly; • Capital outlay expenditures are under budget due to unused budget authority for station security improvements and Commission network, hardware, and software improvements; and Agenda Item 8D 35 • The Commission entered into a loan agreement with the U.S. Department of Transportation for a $421,054,409 Transportation Infrastructure Finance and Innovation Act (TIFIA) loan to pay eligible 91 Project costs. The loan is a toll revenue bond (TIFIA Bond) that is subordinate to the 2013 Toll Bonds. Proceeds of the TIFIA Bond may be drawn upon after certain conditions have been met. During the first quarter, the Commission drew down $29.3 million in TIFIA loan proceeds. During construction of the 91 Project and for a period of up to five years following substantial completion, interest is compounded and added to the initial TIFIA loan. TIFIA debt service payments are expected to commence on December 1, 2021, which is approximately five years after substantial completion of the 91 Project, through June 1, 2051. Attachments: 1) Quarterly Project Status – September 2015 2) Quarterly Financial Statements – September 2015 Agenda Item 8D 36 RIVERSIDE COUNTY TRANSPORTATION COMMISSION QUARTERLY PROJECT STATUS 1ST QUARTER FOR THREE MONTHS ENDED 9/30/2015 FY 2015/16 BUDGET 1ST QUARTER EXPENDITURES Project Description Project Status 91 Project (Design-Build) $ 369,290,600 $32,574,080 The design-build contract is on schedule with actual reported progress of 58 percent as of September 30, 2015. The Commission has acquired and delivered all 197 Caltrans parcel numbers to the Design-Builder. Construction has begun on 24 of 32 bridges (9 bridges are complete) and 34 of 93 walls (7 walls are complete), while 79 of 90 utility relocations are complete. The substantial completion date of January 2017 is unchanged. The under-run of the FY 2015/16 budget at first quarter can be attributed to three main components: planned goodwill and negotiated right of way settlement costs that will occur later in the fiscal year; project construction management (PCM), Caltrans, systems integration and implementation contract, and Design-Builder costs have occurred, but have yet to be invoiced; and a one-time SR-91 Express Lanes bus expenditure that has not been submitted to the Commission for payment. The project will connect with Orange County Transportation Authority’s tolled express lanes at the Orange County/Riverside County line and continue approximately eight miles to the Interstate (I)-15/State Route (SR)-91 interchange. The project involves widening pavement on the outside of the existing highway to reposition general purpose lanes and repurposing the existing high occupancy vehicle lanes to accommodate two- tolled express lanes in the median in each direction. The SR-91 CIP also involves constructing one new general purpose lane in each direction from SR-71 to I-15, ultimately providing two-tolled express lanes and five general purpose lanes in each direction. SR-91 CIP development activities began in September 2007, construction work related to roadway and structures began in July 2014, and the toll lanes are expected to open in January 2017. The total acquisition and construction cost of the SR-91 CIP is estimated at $1.4 billion, including capitalized interest, debt service reserves, and cost of issuance. I-15 Express Lanes Project 17,319,200 1,259,739 Staff continues to advance the project report and environmental document, which is expected to be completed in FY 2015/16. Various methods of project delivery were analyzed in 2013, and ultimately staff received Commission approval in January 2014 to use the design-build method of project delivery and begin planning for the design-build phase of work. The PCM and the traffic and revenue study contracts were both approved by the Commission in April 2015. The budget variance at the end of the first quarter is due to PCM costs that have occurred but have yet to be invoiced. The project is currently in the preliminary engineering and environmental phase of work to add up to two-tolled express lanes in each direction from SR-60 to Cajalco Road in Corona. The project will use the design-build method of project delivery. Project development activities began in April 2008, and lanes are expected to open to traffic in 2020. The estimated project cost is $415 million. ATTACHMENT 1 37 FY 2015/16 BUDGET 1ST QUARTER EXPENDITURES Project Description Project Status I-215 Corridor Improvements/Scott Road to Nuevo Road 19,147,800 1,469,281 The notice to proceed for construction was issued in December 2012 and construction started in January 2013; construction work continues generally on schedule despite two separate traffic incidents that delayed construction of the Perris Boulevard overcrossing in July of 2013 and July of 2014. Major changes with aesthetics will prolong the work, but the originally scoped traffic work will be completed by the end of the second quarter of FY 2015/16. The new lanes are expected to be open to traffic in late October 2015. The budget variance at the end of the first quarter is due to costs that have occurred but have not been invoiced. The project will add one mixed flow lane in each direction. Preliminary engineering began in 2007 and was completed in 2011. Final design began in 2011 and was completed in December 2012; construction began in 2013 and is expected to be completed in 2016. The estimated project cost is $120 million. Mid County Parkway 21,192,300 162,018 Staff completed the work on the Environmental Impact Report (EIR)/Environmental Impact Study (EIS). Major milestones have been met and the project’s Record Of Decision was published in the Federal register in August 2015. A budget amendment was approved by the Commission in April 2014 to allocate additional funding for the completion of Phase II Final EIR/Supplemental EIS. In April 2015, the Commission approved the EIR. While the federal environmental document was completed on schedule, the Commission has received a legal challenge to California Environmental Quality Act (CEQA) document. A recirculated project report and environmental document is under development for a new corridor from I-215 to SR-79. The environmental phase is anticipated to be completed in FY 2014/15. Construction of this new facility will be completed over many years as funding becomes available; the project cost is estimated at $1.3 to $1.6 billion. Perris Valley Line and other rail projects 61,112,200 1,278,896 ROW acquisition activities for the station and layover facility at south Perris have been completed. Following the settlement of a lawsuit challenging elements of the CEQA document in July 2013, the construction contract was given full notice to proceed in October 2013 following FTA approval of the Small Starts Grant Agreement. Active construction commenced in January 2014; some construction delays have occurred due to various factors. Full service is expected to be available in early 2016. The budget variance at the end of the first quarter is due to costs that have occurred but have not been invoiced. The project is in the construction phase with the extension of commuter rail services to the city of Perris. The project commenced in December 2007 when the Commission received approval from the Federal Transit Administration (FTA) to move into project development. Expected completion date is December 2015 for an estimated project cost of $248.3 million. Other rail projects include adding a fourth main track between the Riverside Downtown station to the connector to the San Jacinto Branch Line at Highgrove. This list discusses the significant capital projects (i.e., total budgeted costs in excess of $5 million) and related status. Capital project expenditures are generally affected by lags in invoices submitted by contractors and consultants, as well as issues encountered during certain phases of the projects. The capital projects budgets tend to be based on aggressive project schedules. 38 . Revenues Sales tax 266,372,400$ 16,611,300$ (249,761,100)$ 6% Federal reimbursements 46,890,300 (8,604,440) (55,494,740)-18% State reimbursements 55,650,500 (3,903,667) (59,554,167)-7% Local reimbursements 2,843,200 (188,701) (3,031,901)-7% Transportation Uniform Mitigation Fee 12,053,800 2,915,648 (9,138,152)24% Other revenues 1,847,000 207,416 (1,639,584)11% Investment income 2,456,300 1,521,158 (935,142)62% Total revenues 388,113,500 8,558,714 (379,554,786)2% Expenditures Salaries and benefits 9,499,800 2,164,774 7,335,026 23% Professional and support Professional services 16,301,000 1,112,038 15,188,962 7% Support costs 7,005,200 1,392,754 5,612,446 20% Total Professional and support costs 23,306,200 2,504,792 20,801,408 11% Projects and operations Program operations - general 22,079,100 1,077,080 21,002,020 5% Engineering 20,094,900 547,440 19,547,460 3% Construction 155,631,800 1,872,005 153,759,795 1% Design Build 284,681,200 33,557,991 251,123,209 12% Right of way/land 105,612,400 (2,119,569) 107,731,969 -2% Operating and capital disbursements 149,563,500 29,035,495 120,528,005 19% Special studies 1,844,000 116,833 1,727,167 6% Local streets and roads 50,679,000 3,183,381 47,495,619 6% Regional arterials 30,600,000 1,434,336 29,165,664 5% Total projects and operations 820,785,900 68,704,992 752,080,908 8% Debt service Principal 7,800,000 - 7,800,000 N/A Interest 46,119,900 1,231,758 44,888,142 3% Total debt service 53,919,900 1,231,758 52,688,142 2% Capital outlay 3,793,500 26,441 3,767,059 1% Total Expenditures 911,305,300 74,632,757 836,672,543 8% Excess revenues over (under) expenditures (523,191,800) (66,074,043) 856,220,003 13% Other financing sources/(uses) Operating transfer in 136,077,400 15,149,152 (120,928,248) 11% Operating transfer out (136,077,400) (15,149,152) 120,928,248 11% TIFIA loan proceeds 261,277,900 29,335,096 (231,942,804) 11% Total financing sources/(uses)261,277,900 29,335,096 231,942,804 11% Net change in fund balances (261,913,900) (36,738,947) 1,088,162,807 14% Fund balance July 1, 2015 831,809,600 803,802,444 (28,007,156) 97% Fund balance September 30, 2015 569,895,700$ 767,063,497$ 1,060,155,651$ 135% QUARTERLY BUDGET TO ACTUAL RIVERSIDE COUNTY TRANPORTATION COMMISSION 1ST QUARTER FOR THREE MONTHS ENDED 9/30/2015 FY 2015/16 BUDGET 1ST QUARTER ACTUAL PERCENT UTILIZATION REMAINING BALANCE ATTACHMENT 2 39 TRANSPORTATION DEVELOPMENT ACT AGENCY FUND Revenues Sales tax 300,000$ -$ 8,248,364$ 2,437,869$ 72,967$ 5,552,100$ -$ -$ -$ -$ -$ -$ -$ -$ 16,611,300$ Federal reimbursements - - (8,604,440) - - - - - - - - - - - (8,604,440) State reimbursements - 163,106 (4,066,773) - - - - - - - - - - - (3,903,667) Local reimbursements (106,801) - (81,900) - - - - - - - - - - - (188,701) Transportation Uniform Mitigation Fee - - - - - - - 2,915,648 - - - - - - 2,915,648 Other revenues 14,338 - 193,078 - - - - - - - - - - - 207,416 Investment income - - 74,470 14,710 - - 29,421 29,421 - - 419,155 242,145 48,853 662,983 1,521,158 Total revenues 207,537 163,106 (4,237,201) 2,452,579 72,967 5,552,100 29,421 2,945,069 - - 419,155 242,145 48,853 662,983 8,558,714 Expenditures Salaries and benefits 1,386,887 8,683 688,306 1,705 - - - 59,089 9,528 10,576 - - - - 2,164,774 Professional and support Professional services (138,985) 74,295 1,096,758 358 - - 209 15,926 63,477 - - - - - 1,112,038 Support costs 1,327,221 37,865 27,557 - - - - 68 43 - - - - - 1,392,754 Total Professional and support costs 1,188,236 112,160 1,124,315 358 - - 209 15,994 63,520 - - - - - 2,504,792 Projects and operations Program operations - general 243,436 518,210 293,762 924 - - - 20,748 - - - - - - 1,077,080 Engineering - - 253,985 - - - - 293,455 - - - - - - 547,440 Construction - - 4,258,770 - - - - (2,386,765) - - - - - - 1,872,005 Design Build - - 33,557,991 - - - - - - - - - - - 33,557,991 Right of way/land - - (2,110,091) - - - - (9,478) - - - - - - (2,119,569) Operating and capital disbursements 5,391,446 - 1,000,359 1,574,503 - 20,993,352 75,835 - - - - - - - 29,035,495 Special studies 94,010 - 22,823 - - - - - - - - - - - 116,833 Local streets and roads - - 2,330,127 853,254 729*67 - - - - - - - - - 3,183,381 Regional arterials - - - 1,434,336 - - - - - - - - - - 1,434,336 Total projects and operations 5,728,892 518,210 39,607,726 3,863,017 - 20,993,352 75,835 (2,082,040) - - - - - - 68,704,992 Debt service Interest - - - - - - - - - - - - - 1,231,758 1,231,758 Total debt service - - - - - - - - - - - - - 1,231,758 1,231,758 Capital outlay 21,550 - 4,891 - - - - - - - - - - - 26,441 Total Expenditures 8,325,565 639,053 41,425,238 3,865,080 - 20,993,352 76,044 (2,006,957) 73,048 10,576 - - - 1,231,758 74,632,757 Excess revenues over (under) expenditures (8,118,028) (475,947) (45,662,439) (1,412,501) 72,967 (15,441,252) (46,623) 4,952,026 (73,048) (10,576) 419,155 242,145 48,853 (568,775) (66,074,043) Other financing sources/(uses) Operating transfer in 9,538,195 571,200 915,593 - - - - - 189,439 - - - - 3,934,725 15,149,152 Operating transfer out - (571,200) (4,465,870) - - (9,538,195) (189,439) - - - - - (384,448) - (15,149,152) TIFIA loan proceeds - - 29,335,096 - - - - - - - - - - - 29,335,096 Total financing sources/(uses)9,538,195 - 25,784,819 - - (9,538,195) (189,439) - 189,439 - - - (384,448) 3,934,725 29,335,096 Net change in fund balances 1,420,167 (475,947) (19,877,620) (1,412,501) 72,967 (24,979,447) (236,062) 4,952,026 116,391 (10,576) 419,155 242,145 (335,595) 3,365,950 (36,738,947) Fund balance July 1, 2015 10,182,797 7,988,086 248,871,517 35,713,138 556 112,103,274 60,580,753 61,486,038 4,054,106 500,041 26,830,382 87,921,226 41,370,827 106,199,703 803,802,444 Fund balance September 30, 2015 11,602,964$ 7,512,139$ 228,993,897$ 34,300,637$ 73,523$ 87,123,827$ 60,344,691$ 66,438,064$ 4,170,497$ 489,465$ 27,249,537$ 88,163,371$ 41,035,232$ 109,565,653$ 767,063,497$ RIVERSIDE COUNTY TRANSPORTATION COMMISSION QUARTERLY BUDGET TO ACTUAL BY FUND 1ST QUARTER FOR THREE MONTHS ENDED 9/30/2015 SALES TAX BONDS DEBT SERVICE COMBINED TOTALCOMMERCIAL PAPER STATE TRANSIT ASSISTANCE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) TOLL REVENUE BONDS COACHELLA VALLEY RAIL CAPITAL PROJECTS FUNDS GENERAL FUND FSP/ SAFE WESTERN COUNTY PALO VERDE VALLEY COACHELLA VALLEY LOCAL TRANSPORTATION FUND MEASURE A SALES TAX SPECIAL REVENUE FUNDS 40 AGENDA ITEM 8E RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Michele Cisneros, Deputy Director of Finance THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Sales Tax Analysis STAFF RECOMMENDATION: This item is for the Commission to receive and file the sales tax analysis for the Quarter 2 2015 (2Q 2015). BACKGROUND INFORMATION: At its December 2007 meeting, the Commission awarded an agreement with MuniServices, LLC (MuniServices) for quarterly sales tax reporting services plus additional fees contingent on additional sales tax revenue generated from the transactions and use tax (sales tax) audit services. As part of the recurring contracts process, the Commission approved a five-year extension through June 30, 2018. The services performed under this agreement pertain to only the Measure A sales tax revenues. Since the commencement of these services, MuniServices submitted an audit update, which reported findings generated and submitted to the State Board Equalization (SBOE) for review and determination of errors in sales tax reporting related to 403 businesses. Through 1Q 2015, the SBOE approved corrections for 293 of these accounts for a total sales tax revenue recovery of $5,672,888. Updated amounts for 2Q 2015 will be provided once received from MuniServices. If the SBOE concurs with the error(s) for the remaining claims, the Commission will receive additional revenues; however, the magnitude of the value of the remaining findings was not available. It is important to note that while the recoveries of additional revenues will be tangible, it will not be sufficient to alter the overall trend of sales tax revenues. Additionally, MuniServices provided the Commission with the quarterly sales tax summary report for 2Q 2015. Most of 2Q 2015 Measure A sales tax revenues were received in the third quarter of calendar year 2015, during July 2015 through September 2015, due to a lag in the sales tax calendar. The summary section of the 2Q 2015 report is attached and includes an overview of California’s economic outlook, local results, historical cash collections analysis by quarter, summary of the top 25 sales/use tax contributions, historical sales tax amounts, annual sales tax by business category, five-year economic trend for significant business category (business to business), and final results. Agenda Item 8E 41 Taxable transactions for the top 25 tax contributors in Riverside County generated 24.0 percent of taxable sales for the benchmark year ended 2Q 2015, slightly lower than the 25.4 percent for the benchmark year ended 2Q 2014. The top 100 tax contributors generated 39.2 percent of the taxable sales for the benchmark year ended 2Q 2015, compared to the 40.0 percent for the benchmark year ended 2Q 2014. In the Economic Category Analysis below, all but two categories experienced new highs in the 2Q 2015 benchmark year compared to the prior eight benchmark year quarters. Transportation and business to business were below the 4Q 2014 benchmark year high point and had small increases ranging from 0.2 to 1.2 percent. Construction and miscellaneous had the largest increases of 7.8 and 6.0 percent, respectively, while food products and general retail increased 5.6 and 4.9 percent, respectively. An analysis of sales tax performance by quarter through 2Q 2015 is attached and illustrates fairly consistent cycles for sales tax performance for most of the economic categories since the recent economic recession. For 6 of the top 10 segments (auto sales-new, restaurants, miscellaneous retail, building materials-wholesale, apparel stores, and building materials-retail) during the past eight benchmark year quarters, sales tax receipts reached a new high point. The 6 segments represent 45.6 percent of the total sales tax receipts. Service stations and light industry, 2 of the top 10 segments representing 9.2 and 5.4 percent, respectively, of the total sales tax receipts, decreased to a new low point in the past two-year period during 2Q 2015. This was due to lower fuel prices and completion of renewable energy developments in Riverside County. Department stores and food markets remained relatively unchanged. These top 10 segments represent 75.5 percent of the total sales tax receipts. For the other 19 segments representing 24.5 percent of the total sales tax receipts, nine segments representing 12.5 percent of the total sales tax receipts reached new high points in the past two years during 2Q 2015. In the Economic Segment Analysis below, auto sales-new, restaurants, and department stores represent the three largest segments for Riverside County, or 32.4 percent of total sales taxes. This is the eleventh consecutive quarter since 3Q 2008 that department stores and auto % of Total / % Change RCTC California Riverside Countywide San Bernardino Countywide Inland Empire South Coast S.F. Bay Area Sacramento Valley Central Valley North Coast Central Coast General Retail 28.7 / 4.9 28.4 / 2.5 28.4 / 3.9 25.1 / 3.7 26.7 / 3.8 29.1 / 2.3 27.1 / 1.6 28.0 / 2.3 30.4 / 4.1 28.1 / 1.8 31.7 / 1.8 Food Products 16.8 / 5.6 20.1 / 5.8 19.2 / 5.5 14.9 / 5.4 17.0 / 5.4 21.1 / 5.6 21.4 / 6.8 17.0 / 6.0 16.1 / 4.5 18.4 / 3.6 30.8 / 4.6 Transportation 26.2 / 1.2 24.4 / 0.3 27.6 / 1.6 28.9 / 3.9 28.3 / 2.8 24.0 / -0.6 21.4 / 0.2 28.3 / 1.4 26.6 / 1.0 30.5 / -1.2 21.1 / -0.9 Construction 10.7 / 7.8 9.2 / 6.5 13.1 / 0.9 8.5 / 5.8 10.8 / 2.8 8.1 / 7.3 9.3 / 6.8 11.1 / 6.6 11.7 / 7.8 13.0 / 5.7 9.2 / 2.2 Business to Business 15.6 / 0.2 16.8 / 2.1 10.7 / 3.5 21.3 / 6.4 16.1 / 5.5 16.7 / 0.8 19.6 / 3.7 13.9 / 1.8 13.7 / -0.3 9.2 / 5.0 6.1 / 22.3 Miscellaneous 2.0 / 6.0 1.1 / 2.5 1.0 / 14.5 1.2 / 10.1 1.1 / 11.9 1.0 / 0.2 1.2 / 2.2 1.7 / 1.0 1.4 / 6.3 0.9 / -11.2 1.1 / -8.4 Total 100.0 / 3.6 100.0 / 2.9 100.0 / 3.2 100.0 / 4.8 100.0 / 4.0 100.0 / 2.4 100.0 / 3.3 100.0 / 3.0 100.0 / 3.1 100.0 / 1.8 100.0 / 3.1 General Retail: Apparel Stores, Department Stores, Furniture/Appliances, Drug Stores, Recreation Products, Florist/Nursery, and Misc. Retail Food Products: Restaurants, Food Markets, Liquor Stores, and Food Processing Equipment Construction: Building Materials Retail and Building Materials Wholesale Transportation: Auto Parts/Repair, Auto Sales - New, Auto Sales - Used, Service Stations, and Misc. Vehicle Sales Business to Business: Office Equip., Electronic Equip., Business Services, Energy Sales, Chemical Products, Heavy Industry, Light Industry, and Leasing Miscellaneous: Health & Government, Miscellaneous Other, and Closed Account Adjustments ECONOMIC CATEGORY ANALYSIS Agenda Item 8E 42 sales-new have been in the top three economic segments. Growth seen in previous quarters for the service stations segment has been declining continuously from the high in the last four years due to lower fuel prices, and this segment reached a new low point in 2Q 2015. Restaurants replaced service stations in the top three economic segments beginning in 4Q 2014 and resulted from continued steady growth in restaurant prices with no decline in restaurant use. During the review of the 2Q 2015 detailed report with MuniServices, information regarding sales tax comparison by city and change by economic segments (two highest gains and two highest losses) from 2Q 2015 to 2Q 2014 was provided. Staff continues to monitor monthly sales tax receipts and other available economic data to determine the need for any adjustment to the revenue projections. Staff will utilize the forecast scenarios included with the complete report and receipt trends in assessing such projections. Attachments: 1) Sales Tax Digest Summary 2Q 2015 2) Sales Tax Performance Analysis by Quarter 3) Quarterly Sales Tax Change Comparison by City for 2Q 2015 to 2Q 2014 % of Total / % Change RCTC California Riverside Countywide San Bernardino Countywide Inland Empire South Coast S.F. Bay Area Sacramento Valley Central Valley North Coast Central Coast Largest Segment Auto Sales - New Restaurants Restaurants Service Stations Restaurants Restaurants Restaurants Auto Sales - New Department Stores Service Stations Restaurants % of Total / % Change 11.3 / 10.1 14.1 / 7.3 12.2 / 8.6 10.9 / -8.6 11.0 / 8.6 15.3 / 6.9 15.1 / 7.8 12.3 / 7.3 13.6 / 2.0 12.5 / -9.2 22.1 / 5.3 2nd Largest Segment Restaurants Auto Sales - New Auto Sales - New Department Stores Auto Sales - New Auto Sales - New Auto Sales - New Department Stores Auto Sales - New Department Stores Misc. Retail % of Total / % Change 10.8 / 8.3 10.9 / 7.9 12.0 / 9.5 10.5 / 4.1 10.8 / 9.7 11.0 / 6.7 10.5 / 8.9 11.1 / 0.9 10.7 / 11.0 11.2 / 0.6 10.0 / 4.7 3rd Largest Segment Department Stores Department Stores Department Stores Restaurants Department Stores Department Stores Department Stores Restaurants Restaurants Auto Sales - New Service Stations % of Total / % Change 10.3 / 0.8 9.8 / 0.6 11.0 / -1.2 9.9 / 8.6 10.7 / 1.3 9.5 / 0.1 8.2 / 0.4 11.0 / 7.4 10.2 / 8.0 10.5 / 7.3 9.0 / -4.2 ECONOMIC SEGMENT ANALYSIS Agenda Item 8E 43 Riverside County Transportation Commission Sales Tax Digest Summary Collections through September 2015 Sales through June 2015 (2015Q2) www.MuniServices.com (800) 800-8181 Page 1 CALIFORNIA’S ECONOMIC OUTLOOK California sales tax receipts increased by 3.8% over the same quarter from the previous year, with Northern California reporting a 3.5% increase compared to 4.0% for Southern California. Receipts for the Riverside County Transportation Commission changed by 3.4% over the same periods. The Gap in Inflation between Goods and Services may widen. Because goods account for the bulk of international trade, a stronger dollar keeps prices for goods lower. Sharp appreciation of the dollar over the last three quarters may push the prices of goods even lower in the next few months, widening the gap and impacting Sales Tax Revenues. (Federal Reserve Bank of Cleveland) California Gasoline Prices are heading even lower and may continue into 2017. The statewide price of $3.07 is 18% lower than the $3.73 per gallon price from this same time last year. (SJ Mercury News) eCommerce Revenue for 2015 will be $ 287.3 billion, and is expected to grow by an average 8% a year to $ 421.8 billion by 2020. (statista) 56% of retail shoppers say their first stop when researching a purchase is a search engine (Pricewaterhouse Coopers) and 84% use mobile phones in stores. (Deloitte & Touche) LOCAL RESULTS Net Cash Receipts Analysis Local Collections $42,376,129 Share of County Pool 0.0% 0 Share of State Pool 0.0% 0 SBE Net Collections 42,376,129 Less: Amount Due County 0.0% .00 Less: Cost of Administration (496,230) Net 2Q2015 Receipts 41,879,899 Net 2Q2014 Receipts 40,507,011 Actual Percentage Change 3.4% Business Activity Performance Analysis Local Collections $42,376,129 Less: Payments for Prior Periods (2,725,891) Preliminary 2Q2015 Collections 39,650,238 Projected 2Q2015 Late Payments 1,379,790 Projected 2Q2015 Final Results 41,030,028 Actual 2Q2014 Results 40,606,578 Projected Percentage Change 1.0% ATTACHMENT 1 44 Riverside County Transportation Commission www.MuniServices.com (800) 800-8181 Page 2 HISTORICAL CASH COLLECTIONS ANALYSIS BY QUARTER TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies RCTC’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents sales from July 2014 to June 2015. The Top 25 Sales/Use Tax contributors generate 24.0% of RCTC’s total sales and use tax revenue. 7-ELEVEN LOWE’S ARCO AM/PM MACY’S AMAZON MCDONALD’S BEST BUY RALPH’S CARMAX ROSS CHEVRON SAM’S CLUB CIRCLE K SHELL COSTCO STATER BROS. DEPT OF MOTOR VEHICLES TARGET DESERT SUNLIGHT USA SERVICE STATIONS HOME DEPOT WALGREEN’S JACK IN THE BOX WALMART KOHL’S $0 $100 $200 $300 $400 $500 $600 $32,000 $34,000 $36,000 $38,000 $40,000 $42,000 $44,000 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 A d m i n F e e s N e t R e c e i p t s (in thousands of $) Net Receipts SBOE Admin Fees Due 45 Riverside County Transportation Commission www.MuniServices.com (800) 800-8181 Page 3 HISTORICAL SALES TAX AMOUNTS The following chart shows the sales tax level from sales through June 2015, the highs, and the lows for each segment over the last two years. ANNUAL SALES TAX BY BUSINESS CATEGORY $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 (in thousands of $) 2Q2015 High Low 42,227 42,748 43,170 43,702 43,943 44,627 45,303 45,994 46,527 46,817 23,897 24,261 24,498 25,002 25,493 25,934 26,412 26,659 27,068 27,390 39,152 39,831 40,535 41,131 41,585 42,179 42,702 42,792 42,639 42,667 13,999 14,351 14,984 15,177 15,671 16,159 16,513 16,952 17,222 17,422 24,718 25,341 25,472 25,115 25,350 25,412 25,555 26,164 25,904 25,452 2,846 2,818 2,880 2,976 3,006 3,110 3,111 3,200 3,260 3,297 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 (in thousands of $) General Retail Food Products Transportation Construction Business To Business Miscellaneous 46 Riverside County Transportation Commission www.MuniServices.com (800) 800-8181 Page 4 FIVE-YEAR ECONOMIC TREND: Business To Business FINAL RESULTS: January-March 2015 Sales Local Net Cash Collections $39,111,661 Less: Pool Amounts ($-509,200) Less: Prior Quarter Payments ($1,577,342) Add: Late Payments $1,758,776 Local Net Economic Collections after Adjustments $39,802,295 Percent Change from January-March 2014 Sales UP BY 2.2% MUNISERVICES’ ON-GOING AUDIT RESULTS This Quarter $406,337 Total to Date $5,807,425 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 (in thousands of $) 47 RCTC: Sales Tax Performance Analysis by QuarterTOTALConfidentialEconomicTOTAL2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$41,029,728 1.0% $423,505 3.6% $5,622,350GENERAL RETAIL2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$11,240,388 2.6% $289,520 4.9% $2,189,66227.4%FOOD PRODUCTS2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$7,095,811 4.7% $321,732 5.6% $1,455,548% of Total: 17.3%TRANSPORTATION2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$11,195,543 0.2% $27,598 1.2% $487,990% of Total: 27.3%CONSTRUCTION2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$4,546,498 4.6% $200,505 7.8% $1,263,069% of Total: 11.1%BUSINESS TO BUSINESS2015Q2 QoQ %∆QoQ $∆YoY %∆YoY $∆$6,083,832-6.9% -$452,2650.2% $39,689% of Total: 14.8%Q3 Q4 Q1 Q2TOTALCATEGORYQoQ = 15Q2 / 14Q2 YoY = YE 15Q2 / YE 14Q2% of 2015Q2 Total:$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,000$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000$50,000,0002010Q22010Q32010Q42011Q12011Q22011Q32011Q42012Q12012Q22012Q32012Q42013Q12013Q22013Q32013Q42014Q12014Q22014Q32014Q42015Q12015Q2ATTACHMENT 248 INLAND EMPIRE: Quarterly Comparison of 2014Q2 and 2015Q2 ( April thru June Sales )General RetailFood ProductsTransportationConstructionB2BMisc.Apr ‐ Jun2015(2015Q2)Apr ‐ Jun2014(2014Q2)% Chg GainGainDeclineDeclineRIVERSIDE COUNTYRCTC2.6% 4.7% 0.2% 4.6%‐6.9% 4.4%41,029,72840,606,0581.0%Auto Sales ‐ New RestaurantsService Stations Light IndustryRIVERSIDE COUNTYBANNING‐21.5% 6.3% 4.5%‐0.8% 13.1%‐26.7%472,484467,3991.1%Auto Sales ‐ New RestaurantsDepartment Stores Service StationsBEAUMONT2.7% 11.3%‐6.5% 4.5% 34.0% 4.2%968,794926,9934.5%Light IndustryRestaurantsService Stations Office EquipmentBLYTHE‐6.3% 4.8% 0.8%‐1.5%‐22.8% 39.6%402,768413,251‐2.5%Auto Sales ‐ New RestaurantsService Stations Energy SalesCALIMESA7.4% 9.1%‐12.7%‐40.0% 13.0%‐26.7%168,520170,886‐1.4%Food Processing Eqp RestaurantsService Stations Misc. Vehicle SalesCANYON LAKE3.4% 16.9% 7.3% 14.5% 15.4%‐4.4%45,68941,11911.1%RestaurantsAuto Sales ‐ Used Service Stations Apparel StoresCATHEDRAL CITY‐0.6%‐3.1% 15.4%‐3.0% 7.9% 1.3%2,051,7931,878,1619.2%Auto Sales ‐ New Service Stations Food Markets Auto Parts/RepairCOACHELLA‐2.3% 11.4%‐14.3% 10.0%‐27.1%‐58.6%789,805838,301‐5.8%RestaurantsFood MarketsService StationsEnergy SalesCORONA‐0.5% 0.6% 0.4% 13.2%‐14.8% 100.0%8,379,2588,272,1851.3%Bldg.Matls‐Whsle Auto Sales ‐ New Service Stations Office EquipmentDESERT HOT SPRINGS‐5.1% 3.4%‐16.6%‐30.1%‐23.9% 1.6%316,645349,273‐9.3%RestaurantsMiscellaneous Retail Service Stations Bldg.Matls‐WhsleEASTVALE‐1.9% 3.0%‐14.9% 8.0% 10.3% 203.4%1,585,1711,544,0582.7%Electronic Equipment Bldg.Matls‐Whsle Heavy IndustryService StationsHEMET‐1.3% 4.3%‐1.2%‐6.6%‐2.2% 19.0%2,504,6112,524,261‐0.8%Auto Sales ‐ New RestaurantsService Stations Department StoresINDIAN WELLS‐10.3%‐14.2%‐100.0% 53.8%‐39.1% 48.6%202,671236,216‐14.2%Furniture/Appliance Health & Government RestaurantsBusiness ServicesINDIO15.3% 9.0%‐3.4% 1.0% 8.6%‐11.6%2,427,3342,329,7024.2%Department Stores RestaurantsService Stations Auto Sales ‐ UsedJURUPA VALLEY‐29.1% 3.3%‐2.6% 13.6% 39.5%‐18.9%2,283,3792,182,4144.6%Chemical Products LeasingDepartment Stores Heavy IndustryLA QUINTA‐3.3%‐1.2%‐7.3% 2.9%‐7.6% 52.7%1,768,3971,821,606‐2.9%Miscellaneous Retail Auto Parts/Repair Department Stores Auto Sales ‐ NewLAKE ELSINORE2.4% 8.2% 15.7% 5.1%‐6.8%‐3.7%1,962,9331,831,0357.2%Auto Sales ‐ New RestaurantsService Stations Bldg.Matls‐RetailMENIFEE52.5% 45.5% 26.2% 76.4% 27.6% 246.6%1,462,9981,004,59245.6%Department Stores Bldg.Matls‐Retail Service Stations Energy SalesMORENO VALLEY4.6% 4.8% 9.5%‐13.5%‐34.4% 13.2%3,841,8273,830,4800.3%Auto Sales ‐ New Auto Parts/Repair Heavy IndustryService StationsMURRIETA 2.9% 2.8% 1.3% 2.7% 0.6% 22.6%3,200,3883,128,8972.3%Misc. Vehicle Sales Auto Sales ‐ New Service Stations Energy SalesNORCO‐1.0% 4.5% 6.1% 106.5% 17.7% 9.9%1,374,0571,272,9477.9%Auto Sales ‐ New Bldg.Matls‐Whsle Service Stations Miscellaneous RetailPALM DESERT‐3.1% 3.2% 3.5% 10.6%‐8.2% 199.9%3,778,0383,751,4910.7%Miscellaneous OtherRestaurantsDepartment Stores Miscellaneous RetailPALM SPRINGS‐2.2% 4.1%‐2.7%‐1.2%‐7.4%‐18.6%2,594,8112,625,816‐1.2%RestaurantsAuto Sales ‐ New Service Stations Energy SalesPERRIS1.8% 3.6%‐7.3%‐21.0% 8.6% 23.3%1,971,0201,993,969‐1.2%Miscellaneous OtherLight IndustryBldg.Matls‐Whsle Auto Sales ‐ NewRANCHO MIRAGE‐3.4%‐1.5%‐7.2% 2.8% 18.6% 17.4%1,043,9271,056,744‐1.2%Leasing Health & Government Misc. Vehicle Sales Service StationsRIVERSIDE3.3% 7.7%‐0.3% 7.7% 12.1%‐7.6%13,472,95512,947,4224.1%Bldg.Matls‐Whsle RestaurantsService Stations Department StoresRIVERSIDE COUNTY11.1% 2.0%‐22.8%‐45.8%‐11.2% 39.7%6,272,0667,328,898‐14.4%Apparel Stores RestaurantsBldg.Matls‐Whsle Service StationsSAN JACINTO5.3% 45.4%‐19.8%‐60.0%‐2.6% 49.0%618,435587,0085.4%Food Markets RestaurantsBldg.Matls‐Whsle Service StationsTEMECULA6.5% 5.3% 10.2% 3.7% 4.2%‐21.4%7,416,1126,939,7526.9%Auto Sales ‐ New Miscellaneous Retail Service Stations Food Processing EqpWILDOMAR‐12.3%4.2%‐9.8%‐7.5%5.9%‐26.8%359,385377,497‐4.8%RestaurantsBusiness Services Service Stations Miscellaneous RetailMuniServicesATTACHMENT 349 AGENDA ITEM 8F RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Megan Kavand, Accountant Michele Cisneros, Deputy Director of Finance THROUGH: Anne Mayer, Executive Director SUBJECT: Quarterly Investment Report STAFF RECOMMENDATION: This item is for the Commission to receive and file the Quarterly Investment Report for the quarter ended September 30, 2015. BACKGROUND INFORMATION: For the past few years and as a result of a low interest rate environment, the Commission’s quarterly investment reports have reflected investments primarily concentrated in the Riverside County Pooled Investment Fund (RCPIF). Other investments included the state Local Agency Investment Fund and mutual funds. In connection with the issuance of sales tax revenue bonds and toll revenue bonds and the execution of Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the State Route 91 Corridor Improvement Project (SR-91 CIP), the Commission anticipated the need to engage an investment manager for the bond proceeds and other required funds. Additionally, the Commission desired to engage an investment manager to provide investment advisory and management services related to the Commission’s operating funds. Accordingly, at its May 2013 meeting, the Commission awarded two investment management services agreements to Logan Circle Partners, L.P. (Logan) for SR-91 CIP funds and to Payden & Rygel Investment Management (Payden & Rygel) for Commission operating funds. Logan invested the SR-91 CIP debt proceeds during the first quarter of FY 2013/14 in the Short-Term Actively Managed Program (STAMP). Payden & Rygel was authorized to make specific investments for the Commission’s operating funds beginning with the third quarter of FY 2014/15. In June 2015 the Commission funded its FY 2014/15 SR-91 CIP equity contribution of approximately $35 million; the funds were invested by Logan in a separate STAMP account. The quarterly investment report for the first quarter of FY 2015/16, as required by state law and Commission policy reflects the increased investment activities resulting from the SR-91 CIP and available operating cash. The quarterly investment report includes the following information: • Investment Portfolio Report; Agenda Item 8F 50 • STAMP Portfolio by Investment Category; • STAMP Portfolio by Account; • STAMP Portfolio Transaction Report by Account; • STAMP Portfolio Summary of investments by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Toll Revenue Project Senior Lien Fund Summary of investments by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Toll Revenue Project Sales Tax Revenue Fund Summary of investments by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Toll Revenue Series A & Series B Reserve Fund Summary of investments by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Toll Revenue Project Capitalized Interest Fund Summary of investments by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Sales Tax Revenue Capitalized Interest Fund Summary of investment by credit rating, industry group, asset class, security type and market sector; • STAMP Portfolio Sales Tax Equity Fund Summary of investment by credit rating, industry group, asset class, security type and market sector; • Logan Circle Partners, L.P. Short Duration Third Quarter 2015 Review; • Payden & Rygel Operating Portfolio by Investment Category; • Payden & Rygel Operating Portfolio Transaction Report; • Payden & Rygel Operating Portfolio Third Quarter 2015 Review; and • County of Riverside Investment Report for the Quarter Ended September 30, 2015. The Commission’s investments were in full compliance with the Commission’s investment policy adopted on September 10, 2014, and investments securities permitted under the Indenture for the Commission’s Sales Tax Revenue Bonds and the Master Indenture for the Commission’s Toll Revenue Bonds. Additionally, the Commission has adequate cash flows for the next six months. Attachments: 1) Investment Portfolio Report 2) STAMP Portfolio by Investment Category 3) STAMP Portfolio by Account 4) STAMP Portfolio Transaction Report by Account 5) STAMP Portfolio Summary of Investments 6) STAMP Portfolio Toll Revenue Project Senior Lien Fund Summary of Investments 7) STAMP Portfolio Toll Revenue Project Sales Tax Revenue Fund Summary of Investments 8) STAMP Portfolio Toll Revenue Series A & Series B Reserve Fund Summary of Investments 9) STAMP Portfolio Toll Revenue Project Capitalized Interest Fund Summary of Investments 10) STAMP Portfolio Sales Tax Revenue Capitalized Interest Fund Summary of Investments 11) STAMP Portfolio Sales Tax Equity Fund Summary of Investments 12) Payden & Rygel Operating Portfolio by Investment Category Agenda Item 8F 51 13) Payden & Rygel Operating Portfolio Transaction Report 14) Logan Short Duration Quarterly Review 15) Payden & Rygel Operating Portfolio Quarterly Review 16) County of Riverside Investment Report Agenda Item 8F 52 Riverside County Transportation CommissionInvestment Portfolio ReportPeriod Ended: September 30, 2015FAIR VALUERATINGMOODYS/FITCH/S&PCOUPON RATEPAR VALUEPURCHASE DATEMATURITY DATEYIELD TO MATURITYPURCHASE COSTMARKET VALUEUNREALIZED GAIN (LOSS)OPERATING FUNDSCity National Bank Deposits8,560,301 A3/BBB+N/AN/ACounty Treasurer's Pooled Investment Fund343,236,574 Aaa-bf/AAA/V1N/A0.46%Local Agency Investment Fund (LAIF)3,638,694 Not RatedN/AN/A Subtotal Operating Funds355,435,568 FUNDS HELD IN TRUSTCounty Treasurer's Pooled Investment Fund: Local Transportation Fund 82,317,083 Aaa-bf/AAA/V1N/A0.46% Subtotal Funds Held in Trust82,317,083 COMMISSION MANAGED PORTFOLIOUS Bank Payden & Rygel Operating50,239,644 First American Government Obligation Fund6,350,629 Aaa-mf/-/AAAmN/AN/A Subtotal Commission Managed Portfolio56,590,272 STAMP PORTFOLIO for 91 CIP Toll Revenue Project Senior Lien Fund41,034,919 Toll Revenue Project Sales Tax Revenue Fund50,183,199 Series A & Series B Reserve Fund18,869,003 Toll Revenue Project Capitalized Interest Fund18,580,310 Sales Tax Revenue Capitalized Interest Fund60,045,035 Sales Tax Revenue Equity Fund32,859,072 Subtotal STAMP Portfolio221,571,538 TOTAL All Cash and Investments715,914,461$ See attached report for detailsSee attached report for detailsSee attached report for detailsSee attached report for detailsSee attached report for detailsSee attached report for detailsSee attached report for details2.64%12.74%10.98%4.59%7.90%11.50%49.65%$‐$50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 $400,000,000 STAMP Portfolio for 91 CIP ReserveSTAMP Portfolio for 91 CIP Project FundSTAMP Portfolio for 91 CIP Capitalized InterestSTAMP Portfolio for 91 CIP EquityCommission Managed Portfolio Trust FundsOperating FundsNatureof Investments0.89% Mutual Funds60.63% County Pool/Cash0.51% LAIF37.71% Fixed Income0.17% Money Market Funds0.09% CashATTACHMENT 153 Source Account Account IdentifierSecurity Type CategoryIssuerFinal Maturity Trade Date Current Face Value Original CostNext Call DateBase Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit Rating256350023 LC-Sr Lien Reserve Fund-13135G0D75 AgencyFederal National Mortgage Association06/22/2020 05/06/2015600,000.00 593,490.00--- 600,000.00 6,023.25 1.500 1.500AAA256350005 LC-Project Fund-Toll 23130A6G92 AgencyFederal Home Loan Banks Office of Finance06/21/2016 09/14/2015350,000.00 350,000.00--- 350,000.000.00 0.245 0.249AAA256350005 LC-Project Fund-Toll 23133EECD0 AgencyFederal Farm Credit Banks Consolidated Systemwide B06/20/2017 06/15/2015900,000.00 900,554.67--- 900,153.00(320.92) 0.246 0.240AAA256350023 LC-Sr Lien Reserve Fund-13137EADR7 AgencyFederal Home Loan Mortgage Corp05/01/2020 05/15/2015475,000.00 471,527.75--- 474,567.75 2,789.47 1.375 1.395AAA256350023 LC-Sr Lien Reserve Fund-13137EACA5 AgencyFederal Home Loan Mortgage Corp03/27/2019 07/05/2013800,000.00 875,900.00--- 870,816.00 23,488.12 3.750 1.156AAA256350023 LC-Sr Lien Reserve Fund-13137EADB2 AgencyFederal Home Loan Mortgage Corp01/13/2022 07/05/2013550,000.00 529,303.50--- 566,450.50 32,196.77 2.375 1.868AAA205091001 LC-2013 A Capitalized Interest 3130A3BD5 AgencyFederal Home Loan Banks Office of Finance04/20/2018 08/11/2015600,000.00 601,338.00 10/20/2015 600,360.00(8.43) 1.500 0.417AAA256350022 LC-Sr Lien Ob Fund-1 Interest3130A3BD5 AgencyFederal Home Loan Banks Office of Finance04/20/2018 08/11/2015200,000.00 200,446.00 10/20/2015 200,120.00(2.81) 1.500 0.417AAA256350001 LC-Project Fund-2 Senior Lien3133XDDQ1 AgencyFederal Home Loan Banks Office of Finance10/20/2015 07/22/2015175,578.19 177,388.86--- 176,103.17110.30 5.065 -0.314AAA205091001 LC-2013 A Capitalized Interest 313384PU7 AgencyFederal Home Loan Banks Office of Finance11/27/2015 08/31/2015650,000.00 649,706.06--- 649,935.00125.42 0.000 0.063AAA256350023 LC-Sr Lien Reserve Fund-13130A6G92 AgencyFederal Home Loan Banks Office of Finance06/21/2016 09/29/2015100,000.00 100,004.80--- 100,000.00(4.78) 0.245 0.249AAA205091001 LC-2013 A Capitalized Interest 31392HWL3 Agency CMO Federal National Mortgage Association02/25/2018 07/12/201334,410.2936,324.37--- 35,471.85(0.12) 5.000 1.439AAA256350023 LC-Sr Lien Reserve Fund-13137AEV77 Agency CMO Federal Home Loan Mortgage Corp 05/25/2018 07/03/2013 251,000.00 258,314.30 --- 259,667.03 4,896.03 2.699 1.252 AAA256350023 LC-Sr Lien Reserve Fund-13137AJMF8 Agency CMO Federal Home Loan Mortgage Corp 10/25/2021 08/05/2015 30,000.00 31,038.28 --- 31,556.40 542.46 2.968 1.999 AAA205091001 LC-2013 A Capitalized Interest 31392F6C6 Agency CMO Federal National Mortgage Association12/25/2017 07/09/2013224,805.92 238,469.91--- 231,192.67(984.97) 5.000 1.440AAA256350023 LC-Sr Lien Reserve Fund-138377JZ89 Agency CMO The Government National Mortgage Association Guara10/20/2039 07/05/2013154,359.24 159,080.46--- 160,885.54 2,368.25 3.500 1.997AAA205091001 LC-2013 A Capitalized Interest 31393EXC8 Agency CMO Federal National Mortgage Association09/25/2018 07/24/2013301,561.62 318,807.18--- 312,758.60660.52 4.500 0.919AAA256350022 LC-Sr Lien Ob Fund-1 Interest31393EXC8 Agency CMO Federal National Mortgage Association09/25/2018 07/24/201333,506.8535,423.02--- 34,750.9673.39 4.500 0.919AAA256350005 LC-Project Fund-Toll 238377UN20 Agency CMO The Government National Mortgage Association Guara01/20/2040 06/24/2015152,071.90 154,804.44--- 154,202.43(607.56) 3.000 1.429AAA256350023 LC-Sr Lien Reserve Fund-131392JJ83 Agency CMO Federal National Mortgage Association03/25/2018 07/08/201325,598.0227,005.91--- 26,400.0028.39 5.000 1.449AAA256350023 LC-Sr Lien Reserve Fund-138376GB33 Agency CMO The Government National Mortgage Association Guara10/16/2044 01/23/2015350,000.00 359,262.85--- 359,163.00 2,064.93 3.500 1.226AAA256350005 LC-Project Fund-Toll 23137A2AZ4 Agency CMO Federal Home Loan Mortgage Corp 05/25/2020 07/01/2015 411,787.99 424,205.97 --- 423,935.73 892.02 2.757 1.063 AAA256350023 LC-Sr Lien Reserve Fund-13137AUPE3 Agency CMO Federal Home Loan Mortgage Corp 06/25/2022 07/03/2013 235,000.00 220,358.40 --- 238,146.65 14,576.94 2.396 2.162 AAA205091001 LC-2013 A Capitalized Interest 31392BVM5 Agency CMO Federal National Mortgage Association02/25/2017 07/11/201345,945.4648,501.18--- 46,764.67(104.02) 5.500 0.996AAA256350005 LC-Project Fund-Toll 238378BR35 Agency CMO Government National Mortgage Association11/16/2042 07/10/2015345,332.27 337,562.30--- 338,701.89955.80 1.333 2.142AAA256350023 LC-Sr Lien Reserve Fund-138378CRT6 Agency CMO The Government National Mortgage Association Guara10/20/2040 05/22/2014121,109.81 116,946.66--- 120,555.13 3,366.86 2.000 2.099AAA256350023 LC-Sr Lien Reserve Fund-13137A7E22 Agency CMO Federal Home Loan Mortgage Corp 04/15/2028 07/08/2013 209,799.41 217,207.95 --- 217,039.59 2,618.84 3.500 0.871 AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137B03W2 Agency CMO Federal Home Loan Mortgage Corp 08/25/2017 06/17/2015 550,000.00 553,695.31 --- 554,174.50 1,139.06 1.426 0.842 AAA256350023 LC-Sr Lien Reserve Fund-13137B03W2 Agency CMO Federal Home Loan Mortgage Corp 08/25/2017 07/31/2013 45,000.00 44,964.84 --- 45,341.55 381.67 1.426 0.842 AAA256350023 LC-Sr Lien Reserve Fund-138376T5Z1 Agency CMO The Government National Mortgage Association Guara01/16/2039 01/26/2015163,342.32 170,651.89--- 169,675.10(570.62) 3.000 1.788AAA256350023LC-Sr Lien Reserve Fund-138377RSZ9Agency CMOThe Government National Mortgage Association Guara06/16/203901/21/201570,074.5674,265.65---73,643.46(688.61)4.5002.131AAASTAMP Portfolio by Investment Category for quarter ended September 30, 2015256350023 LC Sr Lien Reserve Fund 138377RSZ9Agency CMOThe Government National Mortgage Association Guara06/16/203901/21/201570,074.5674,265.6573,643.46(688.61)4.5002.131AAA256350005 LC-Project Fund-Toll 23136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/02/2015161,533.61 162,259.25--- 162,326.74165.85 1.246 0.901AAA256350005 LC-Project Fund-Toll 23137A85H7 Agency CMO Federal Home Loan Mortgage Corp 12/15/2039 07/13/2015 173,538.35 180,913.73 --- 182,329.80 1,306.24 3.500 1.587 AAA256350005 LC-Project Fund-Toll 23137A1LC5 Agency CMO Federal Home Loan Mortgage Corp 08/15/2020 08/31/2015 112,372.80 114,163.74 --- 114,320.22 180.22 2.000 0.917 AAA256350022 LC-Sr Lien Ob Fund-1 Interest3136A4M89 Agency CMO Federal National Mortgage Association01/25/2019 07/05/2013176,046.17 177,167.09--- 179,389.28 2,757.31 1.934 1.100AAA205091001 LC-2013 A Capitalized Interest 3136A4M89 Agency CMO Federal National Mortgage Association01/25/2019 07/05/2013573,086.45 576,735.40--- 583,969.36 8,975.93 1.934 1.100AAA256350023 LC-Sr Lien Reserve Fund-138378BX20 Agency CMO Government National Mortgage Association06/16/2051 03/17/201570,872.5569,296.14--- 69,616.68210.06 1.240 1.964AAA256350023 LC-Sr Lien Reserve Fund-138378B7E3 Agency CMO Government National Mortgage Association05/16/2046 05/22/2015231,020.90 222,050.79--- 227,266.81 4,840.38 1.744 2.231AAA256350005 LC-Project Fund-Toll 23133XY2H7 Agency CMO Federal Home Loan Banks Office of Finance 04/20/2017 07/13/2015 301,522.28 309,719.92 --- 309,144.76 (5.47) 2.900 0.954 AAA205091001 LC-2013 A Capitalized Interest 3136ACGF2 Agency CMO Federal National Mortgage Association02/25/2016 07/15/2013673,740.57 675,424.92--- 674,239.14626.60 1.083 0.656AAA256350023 LC-Sr Lien Reserve Fund-138377RVK8 Agency CMO The Government National Mortgage Association Guara04/20/2039---189,307.98 194,647.05--- 195,858.04 1,934.02 3.000 1.725AAA256350023 LC-Sr Lien Reserve Fund-13136A7MJ8 Agency CMO Federal National Mortgage Association12/25/2019 08/20/2013137,337.87 135,299.25--- 138,634.33 2,526.25 1.520 0.983AAA256350005 LC-Project Fund-Toll 23137AHXC7 Agency CMO Federal Home Loan Mortgage Corp11/15/2021 06/18/201588,611.5288,999.19--- 88,750.64(70.18) 3.000 0.685AAA256350023 LC-Sr Lien Reserve Fund-13137ASNH3 Agency CMO Federal Home Loan Mortgage Corp 09/25/2021 07/03/2013 389,845.35 380,967.23 --- 390,262.48 6,858.13 1.459 1.398 AAA256350023 LC-Sr Lien Reserve Fund-13136A72D3 Agency CMO Federal National Mortgage Association04/25/2022 07/03/2013395,000.00 375,250.00--- 401,754.50 22,112.69 2.482 2.180AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137ASNH3 Agency CMO Federal Home Loan Mortgage Corp 09/25/2021 08/15/2013 389,845.35 379,611.91 --- 390,262.48 7,955.02 1.459 1.398 AAA205091001 LC-2013 A Capitalized Interest 31392FPP6 Agency CMO Federal National Mortgage Association11/25/2017 07/15/2013141,099.66 149,433.36--- 144,936.16(650.38) 5.000 1.469AAA205091001 LC-2013 A Capitalized Interest 3136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/08/2013 2,361,467.49 2,326,598.94--- 2,373,062.30 30,681.03 1.246 0.901AAA256350022 LC-Sr Lien Ob Fund-1 Interest3136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/08/2013715,363.11 704,800.33--- 718,875.55 9,294.25 1.246 0.901AAA256350023 LC-Sr Lien Reserve Fund-138379C2M7 Agency CMO The Government National Mortgage Association Guara09/20/2041 07/11/201449,774.8552,048.76--- 51,820.59(300.86) 1.685 1.001AAA256350005 LC-Project Fund-Toll 231394GH22 Agency CMO Federal Home Loan Mortgage Corp 07/15/2018 07/20/2015 145,354.95 150,669.50 --- 150,558.66 51.17 4.500 0.936 AAA256350005 LC-Project Fund-Toll 23137ANLP8 Agency CMO Federal Home Loan Mortgage Corp 11/25/2016 --- 174,481.75 175,909.15 --- 175,563.53 20.56 1.655 0.804 AAA256350005 LC-Project Fund-Toll 238377LN38 Agency CMO The Government National Mortgage Association Guara11/16/2038 06/16/2015238,441.85 246,489.25--- 245,077.68 (1,443.44) 3.500 1.974AAA256350023 LC-Sr Lien Reserve Fund-138378B7F0 Agency CMO Government National Mortgage Association12/16/2042---450,000.00 427,324.22--- 430,240.50 1,887.50 2.273 3.127AAA256350023 LC-Sr Lien Reserve Fund-13137AQT24 Agency CMO Federal Home Loan Mortgage Corp 01/25/2019 10/21/2013 170,000.00 171,195.31 --- 173,665.20 2,994.90 2.130 1.408 AAA256350023 LC-Sr Lien Reserve Fund-138376WA62 Agency CMO The Government National Mortgage Association Guara10/20/2039 01/21/2015156,062.03 163,847.80--- 165,221.31 1,340.08 4.000 1.480AAA256350023 LC-Sr Lien Reserve Fund-138378TAF7 Agency CMO The Government National Mortgage Association Guara07/20/2041 07/05/2013237,325.48 237,361.26--- 244,141.46 6,913.92 2.500 1.718AAA256350022 LC-Sr Lien Ob Fund-1 Interest31393V2T7 Agency CMO Federal Home Loan Mortgage Corp 06/15/2018 07/08/2013 172,341.64 182,278.22 --- 178,159.90 (277.50) 4.500 1.162 AAA205091001 LC-2013 A Capitalized Interest 31393V2T7 Agency CMO Federal Home Loan Mortgage Corp06/15/2018 07/08/2013567,425.63 600,141.27--- 586,581.92(913.67) 4.500 1.162AAA256350005 LC-Project Fund-Toll 23137AH6B9 Agency CMO Federal Home Loan Mortgage Corp 10/25/2020 08/28/2015 175,074.70 178,904.46 --- 179,043.65 219.70 2.257 1.059 AAA256350023 LC-Sr Lien Reserve Fund-138377DPX8 Agency CMO The Government National Mortgage Association Guara11/20/2036 12/31/201330,520.6231,995.47--- 30,776.39(387.02) 2.500 1.034AAA256350023 LC-Sr Lien Reserve Fund-131395EZP5 Agency CMO Federal Home Loan Mortgage Corp 08/15/2019 07/09/2013 97,310.71 102,951.68 --- 100,813.89 (399.15) 4.500 1.709 AAA256350023 LC-Sr Lien Reserve Fund-131394DVM9 Agency CMO Federal National Mortgage Association02/25/2034 06/19/2014168,978.45 178,668.31--- 177,733.22 1,789.48 5.000 0.924AAA205091001 LC-2013 A Capitalized Interest 3137ANLP8 Agency CMO Federal Home Loan Mortgage Corp11/25/2016 07/08/2013 3,060,908.353,091,278.30--- 3,079,885.98 12,828.14 1.655 0.804AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137ANLP8 Agency CMO Federal Home Loan Mortgage Corp 11/25/2016 07/09/2013 927,245.85 936,445.86 --- 932,994.78 3,886.05 1.655 0.804 AAA256350023 LC-Sr Lien Reserve Fund-138378KXW4 Agency MBS The Government National Mortgage Association Guara02/16/2037 12/11/2014197,679.55 196,722.04--- 196,576.49(346.57) 1.705 1.990AAA256350005 LC-Project Fund-Toll 236225FGM5 Agency MBS Ginnie Mae II 08/20/2041 08/06/2015 121,068.63 125,306.03 --- 125,999.75 710.77 1.625 0.856 AAA256350023 LC-Sr Lien Reserve Fund-131413XVG5 Agency MBS Federal National Mortgage Association06/01/2019 08/04/2014200,000.00 218,500.00--- 214,210.0014.37 4.506 2.505AAA256350023 LC-Sr Lien Reserve Fund-138379KDN5 Agency MBS Government National Mortgage Association09/16/2055 08/05/2015196,147.74 191,136.77--- 194,164.69 2,962.95 2.096 2.580AAAPage 2 of 33ATTACHMENT 254 Source Account Account IdentifierSecurity Type CategoryIssuerFinal Maturity Trade Date Current Face Value Original CostNext Call DateBase Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Investment Category for quarter ended September 30, 2015256350023 LC-Sr Lien Reserve Fund-13136A4M48 Agency MBS Federal National Mortgage Association01/25/2022 07/05/2013366,193.12 367,223.04--- 374,773.02 8,047.32 2.098 1.345AAA256350005 LC-Project Fund-Toll 238378NNA7 Agency MBS The Government National Mortgage Association Guara05/16/2038 06/26/2015589,694.52 593,725.63--- 595,874.52 2,443.49 2.250 1.673AAA256350023 LC-Sr Lien Reserve Fund-131381PEB0 Agency MBS Federal National Mortgage Association11/01/2020 09/26/2014265,000.00 279,036.72--- 283,650.70 6,945.37 3.370 1.886AAA256350023 LC-Sr Lien Reserve Fund-13137A7JU5 Agency MBS Federal Home Loan Mortgage Corp 11/25/2017 07/03/2013 325,000.00 351,203.13 --- 341,828.50 4,603.55 3.882 1.148 AAA256350023 LC-Sr Lien Reserve Fund-138378KRS0 Agency MBS The Government National Mortgage Association Guara07/16/2043 05/08/2015450,000.00 434,460.94--- 440,181.00 4,895.38 2.389 2.777AAA256350005 LC-Project Fund-Toll 23136AEYG6 Agency MBS Federal National Mortgage Association06/25/2018 07/02/2015226,539.53 229,371.28--- 230,302.35 1,124.17 1.825 1.124AAA256350023 LC-Sr Lien Reserve Fund-138378KWU9 Agency MBS The Government National Mortgage Association Guara11/16/2041 05/22/201570,897.8269,119.83--- 69,761.33505.68 1.400 2.093AAA256350005 LC-Project Fund-Toll 236225FLU1 Agency MBS Ginnie Mae II 02/20/2042 08/06/2015 253,599.85 262,238.09 --- 262,587.43 395.04 1.750 0.853 AAA256350023 LC-Sr Lien Reserve Fund-13138EJ6V5 Agency MBS Federal National Mortgage Association09/01/2026 11/18/2013123,768.63 131,407.48--- 131,771.51 1,020.45 4.000 1.816AAA256350023 LC-Sr Lien Reserve Fund-138378XP62 Agency MBS The Government National Mortgage Association Guara05/16/2055 05/14/2015467,843.88 473,618.83--- 479,137.63 5,589.01 2.500 2.010AAA256350005 LC-Project Fund-Toll 236225FLA5 Agency MBS Ginnie Mae II 01/20/2042 08/06/2015 149,889.20 155,182.16 --- 155,504.05 349.98 1.750 0.672 AAA256350005 LC-Project Fund-Toll 23138EKUP8 Agency MBS Federal National Mortgage Association03/01/2025 09/21/2015289,695.84 305,289.63--- 301,952.88 (3,735.28) 5.000 2.006AAA256350023 LC-Sr Lien Reserve Fund-131404WTT3 Agency MBS Federal National Mortgage Association05/01/2019 12/31/201377,706.4086,622.62--- 80,618.84 (2,956.29) 4.500 1.720AAA256350023 LC-Sr Lien Reserve Fund-131417YKF3 Agency MBS Federal National Mortgage Association01/01/2030 07/10/2013147,363.26 155,468.24--- 160,630.37 5,024.72 4.500 1.932AAA256350023 LC-Sr Lien Reserve Fund-131385XBG1 Agency MBS Federal National Mortgage Association03/01/2018 09/13/201315,874.0116,905.82--- 16,344.83(52.46) 6.000 1.602AAA256350023 LC-Sr Lien Reserve Fund-131416YXJ2 Agency MBS Federal National Mortgage Association08/01/2026 07/03/201362,604.8965,549.27--- 66,396.86 1,265.42 3.500 1.520AAA256350022 LC-Sr Lien Ob Fund-1 Interest31402RBG3 Agency MBS Federal National Mortgage Association09/01/2019---67,308.7872,198.62--- 69,863.15(360.36) 6.000 1.701AAA205091001 LC-2013 A Capitalized Interest 31402RBG3 Agency MBS Federal National Mortgage Association09/01/2019---230,186.32 246,885.05--- 238,921.89 (1,222.88) 6.000 1.701AAA256350005 LC-Project Fund-Toll 23138L1TX7 Agency MBS Federal National Mortgage Association11/01/2017 06/18/2015311,614.00 313,026.01--- 315,624.47 2,788.71 1.660 ---AAA256350022 LC-Sr Lien Ob Fund-1 Interest31385JLF3 Agency MBS Federal National Mortgage Association08/01/2017 09/18/2013131,201.50 140,057.60--- 135,115.24(691.63) 6.000 1.578AAA256350023 LC-Sr Lien Reserve Fund-138378KSL4 Agency MBS The Government National Mortgage Association Guara12/16/2046---425,000.00 415,829.11--- 416,376.75231.35 2.785 3.052AAA256350023 LC-Sr Lien Reserve Fund-13137B6ZL8 Agency MBS Federal Home Loan Mortgage Corp 12/25/2019 01/07/2014 48,019.59 48,979.43 --- 48,856.09 199.68 2.075 1.227 AAA256350005 LC-Project Fund-Toll 236225EUY6 Agency MBS Ginnie Mae II 09/20/2039 09/17/2015 136,688.21 140,575.29 --- 145,061.72 4,492.23 2.500 -1.063 AAA256350023 LC-Sr Lien Reserve Fund-131418AFW3 Agency MBS Federal National Mortgage Association06/01/2022 07/10/2013223,268.78 230,594.78--- 233,588.26 4,647.37 3.000 1.049AAA205091001 LC-2013 A Capitalized Interest 31410GSQ7 Agency MBS Federal National Mortgage Association12/01/2017 07/05/2013112,757.37 121,073.23--- 116,800.8547.13 6.000 1.244AAA256350023 LC-Sr Lien Reserve Fund-138378B6A2 Agency MBS Government National Mortgage Association11/16/2052 01/22/2015137,221.33 132,895.64--- 134,722.53 1,450.90 1.826 2.373AAA205091001 LC-2013 A Capitalized Interest 31294LPZ0 Agency MBS Federal Home Loan Mortgage Corp12/01/2016 07/05/2013107,076.66 113,200.10--- 108,953.71(284.03) 6.000 1.485AAA205091001 LC-2013 A Capitalized Interest 36200AFG9 Agency MBS Government National Mortgage Association11/15/2017 07/09/201341,797.2744,540.22--- 43,021.10(346.94) 5.500 1.888AAA205091001 LC-2013 A Capitalized Interest 3128MBTH0 Agency MBS Federal Home Loan Mortgage Corp03/01/2019 07/26/201399,673.96 105,654.39--- 103,631.02228.35 5.000 1.294AAA205091001 LC-2013 A Capitalized Interest 36290WH47 Agency MBS Government National Mortgage Association09/15/2018 07/18/2013842,243.94 894,884.19--- 871,166.60 (5,660.95) 4.500 1.389AAA205091001LC-2013 A Capitalized Interest3128H4NR6Agency MBSFederal Home Loan Mortgage Corp05/01/201807/16/201378,007.1482,638.81---81,104.02439.655.0000.831AAA205091001 LC 2013 A Capitalized Interest3128H4NR6Agency MBSFederal Home Loan Mortgage Corp05/01/201807/16/201378,007.1482,638.8181,104.02439.655.0000.831AAA205091001 LC-2013 A Capitalized Interest 31402QT68 Agency MBS Federal National Mortgage Association10/01/2019 07/11/2013230,988.70 249,539.98--- 241,496.38 (1,696.04) 6.000 1.795AAA205091001 LC-2013 A Capitalized Interest 3128PGLY7 Agency MBS Federal Home Loan Mortgage Corp05/01/2017 07/17/2013167,299.20 176,291.54--- 173,940.98 2,792.33 5.000 -0.959AAA205091001 LC-2013 A Capitalized Interest 3128GNR59 Agency MBS Federal Home Loan Mortgage Corp10/01/2016 07/05/201386,397.1891,527.02--- 87,821.01(540.23) 6.000 2.064AAA256350023 LC-Sr Lien Reserve Fund-13128MMAK9 Agency MBS Federal Home Loan Mortgage Corp 09/01/2019 07/08/2013 142,872.55 151,891.38 --- 150,881.99 1,742.06 5.000 1.159 AAA205091001 LC-2013 A Capitalized Interest 31401MWC1 Agency MBS Federal National Mortgage Association06/01/2018 07/12/2013676,181.41 720,978.42--- 700,828.22923.74 4.500 1.094AAA205091001 LC-2013 A Capitalized Interest 3128PHVS7 Agency MBS Federal Home Loan Mortgage Corp11/01/2019 07/16/201371,505.8175,349.25--- 74,344.59597.41 5.000 0.379AAA205091001 LC-2013 A Capitalized Interest 3132FEAK7 Agency MBS Federal Home Loan Mortgage Corp12/01/2017 07/03/2013130,980.10 138,797.98--- 136,180.02614.99 5.000 0.380AAA256350023 LC-Sr Lien Reserve Fund-13136AEYG6 Agency MBS Federal National Mortgage Association06/25/2018 11/20/2013145,327.25 146,473.98--- 147,741.13 1,746.95 1.825 1.124AAA256350005 LC-Project Fund-Toll 217305EFE0 Asset BackedCitibank Credit Card Issuance Trust09/07/2018 06/23/2015330,000.00 331,727.34--- 331,610.40260.47 1.320 0.796AAA256350005 LC-Project Fund-Toll 258768WAD1 Asset BackedMercedes-Benz Auto Receivables Trust 2013-1 11/15/2019 06/16/2015 350,000.00 351,066.41 --- 350,791.00 (40.35) 1.130 0.949 AAA256350005 LC-Project Fund-Toll 2161571FH2 Asset BackedChase Issuance Trust05/15/2019---370,000.00 369,852.54--- 369,630.00(246.27) 0.477 0.525AAA256350005 LC-Project Fund-Toll 202582JGY0 Asset BackedAmerican Express Credit Account Master Trust 05/15/2020 06/25/2015 535,000.00 534,917.97 --- 533,913.95 (1,015.99) 0.497 0.582 AAA256350004 LC-PF-2 Sales Tax Revenue Bond89231NAC7 Asset BackedToyota Auto Receivables 2012-B Owner Trust 07/15/2016 02/14/2014 18,106.63 18,118.66 05/15/2016 18,106.63 (0.58) 0.460 0.460 AAA256350001 LC-Project Fund-2 Senior Lien89231NAC7 Asset BackedToyota Auto Receivables 2012-B Owner Trust 07/15/2016 --- 20,359.53 20,371.48 05/15/2016 20,359.53 (0.57) 0.460 0.460 AAA256350005 LC-Project Fund-Toll 247787RAD2 Asset BackedJohn Deere Owner Trust 2012-B01/15/2019---667,933.08 668,037.45--- 667,826.21(181.94) 0.690 0.727AAA256350001 LC-Project Fund-2 Senior Lien161571FR0 Asset BackedChase Issuance Trust10/16/2017 07/07/2015105,000.00 105,000.00--- 105,000.000.00 0.540 0.541AAA256350005 LC-Project Fund-Toll 247787UAC7 Asset BackedJohn Deere Owner Trust 201502/15/2018 06/12/2015425,000.00 425,066.41--- 424,532.50(521.18) 0.477 0.621AAA256350005 LC-Project Fund-Toll 290290KAD7 Asset BackedUSAA Auto Owner Trust 2014-105/15/2019 06/12/2015445,000.00 443,991.80--- 445,747.60 1,582.64 0.940 0.819AAA256350005 LC-Project Fund-Toll 2161571GR9 Asset BackedChase Issuance Trust11/15/2018 08/04/2015340,000.00 340,000.00--- 339,796.00(204.00) 0.457 0.497AAA256350022 LC-Sr Lien Ob Fund-1 Interest36162WAC1 Asset BackedGE Equipment Transportation LLC, Series 2013-1 11/25/2016 07/09/2013163,500.70 162,964.22--- 163,468.005.32 0.690 0.847AAA256350005 LC-Project Fund-Toll 258772PAC2 Asset BackedMERCEDES-BENZ AUTO RECEIVABLESTR 2015-06/15/2018 08/04/2015390,000.00 390,045.70--- 389,606.10(438.09) 0.477 0.567AAA256350005 LC-Project Fund-Toll 260689LAC9 Asset BackedMMAF EQUIP FIN LLC 2013-A12/11/2017 08/05/2015165,999.43 166,077.24--- 166,059.19(11.88) 1.030 0.968AAA256350005 LC-Project Fund-Toll 255315GAC2 Asset BackedMMAF EQUIP FIN LLC 2015-A10/16/2019 07/30/2015247,000.00 246,286.02--- 246,812.28446.53 1.390 1.456AAA256350005 LC-Project Fund-Toll 205522RCR7 Asset BackedBA Credit Card Trust09/16/2019 06/30/2015125,000.00 124,912.11--- 124,927.502.07 0.477 0.501AAA256350005 LC-Project Fund-Toll 202582JGS3 Asset BackedAmerican Express Credit Account Master Trust 01/15/2020 07/13/2015 500,000.00 500,859.38 --- 501,890.00 1,123.23 1.260 1.039 AAA256350005 LC-Project Fund-Toll 262888YAA0 CMONCUA Guaranteed Notes Trust 2011-R101/08/2020 07/14/2015234,204.11 235,338.54 12/25/2019 235,321.2735.88 0.653 0.436AAA256350001 LC-Project Fund-2 Senior Lien27886MX65 CPEcolab Inc.10/06/2015 09/02/2015 2,000,000.00 1,999,253.34--- 1,999,960.0076.67 0.000 0.144AA256350001 LC-Project Fund-2 Senior Lien84364UX93 CPSouthern Power Company10/09/2015 09/09/2015 2,000,000.00 1,999,250.00--- 1,999,920.00120.00 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond84364UX93 CPSouthern Power Company10/09/2015 09/09/2015 2,500,000.00 2,499,062.50--- 2,499,900.00150.00 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond05333UXK1 CPAutoZone, Inc.10/19/2015 09/22/2015 2,500,000.00 2,499,250.00--- 2,499,800.00300.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien13638XXE5 CPCanadian Natural Resources Limited10/14/2015 09/01/2015 2,000,000.00 1,998,786.67--- 1,999,880.00255.55 0.000 0.166AA256350004 LC-PF-2 Sales Tax Revenue Bond13638XXE5 CPCanadian Natural Resources Limited10/14/2015 08/31/2015 2,750,000.00 2,748,151.40--- 2,749,835.00381.18 0.000 0.166AA256350001 LC-Project Fund-2 Senior Lien05634FXE4 CPBacardi-Martini B.V.10/14/2015 09/10/2015 2,000,000.00 1,999,131.12--- 1,999,880.00212.22 0.000 0.166AA256350004 LC-PF-2 Sales Tax Revenue Bond65475MY53 CPNissan Motor Acceptance Corporation11/05/2015 09/14/2015 2,300,000.00 2,298,505.00--- 2,299,540.00546.25 0.000 0.206AA256350001 LC-Project Fund-2 Senior Lien65475MY53 CPNissan Motor Acceptance Corporation11/05/2015 09/14/2015 2,000,000.00 1,998,700.00--- 1,999,600.00475.00 0.000 0.206AA256350022 LC-Sr Lien Ob Fund-1 Interest44890NX70 CP Hyundai Capital America 10/07/2015 08/31/2015 400,000.00 399,810.89 --- 399,988.00 18.67 0.000 0.180 AA256350001 LC-Project Fund-2 Senior Lien43357MXM7 CPHitachi Capital America Corp.10/21/2015 09/28/2015 2,000,000.00 1,999,348.34--- 1,999,820.00386.66 0.000 0.162AA256350004 LC-PF-2 Sales Tax Revenue Bond43357MXM7 CPHitachi Capital America Corp.10/21/2015 09/28/2015 2,300,000.00 2,299,250.59--- 2,299,793.00444.66 0.000 0.162AAPage 3 of 3355 Source Account Account IdentifierSecurity Type CategoryIssuerFinal Maturity Trade Date Current Face Value Original CostNext Call DateBase Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Investment Category for quarter ended September 30, 2015256350001 LC-Project Fund-2 Senior Lien1248C3XG4 CPCBS Corporation10/16/2015 09/16/2015 1,900,000.00 1,899,303.33--- 1,899,867.00215.34 0.000 0.168AA256350022 LC-Sr Lien Ob Fund-1 Interest27743KY20 CP Eastman Chemical Company11/02/2015 09/28/2015500,000.00 499,787.50--- 499,905.00105.00 0.000 0.214AA256350004 LC-PF-2 Sales Tax Revenue Bond27743KY20 CPEastman Chemical Company11/02/2015 09/28/2015 1,500,000.00 1,499,343.75--- 1,499,715.00315.00 0.000 0.214AA256350001 LC-Project Fund-2 Senior Lien61979KXD1 CPMotiva Enterprises LLC10/13/2015 09/10/2015 2,000,000.00 1,999,200.00--- 1,999,880.00180.00 0.000 0.180AAA256350001 LC-Project Fund-2 Senior Lien74432KX52 CPPrudential Financial, Inc.10/05/2015 08/24/2015 2,000,000.00 1,999,043.33--- 1,999,960.0051.11 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond20279WX89 CPCommonwealth Edison Company10/08/2015 08/24/2015 2,700,000.00 2,698,415.99--- 2,699,919.00171.00 0.000 0.154AA256350004 LC-PF-2 Sales Tax Revenue Bond88513BY46 CPThomson Reuters Corporation11/04/2015 09/01/2015 2,000,000.00 1,997,933.33--- 1,999,600.00733.34 0.000 0.212AA256350001 LC-Project Fund-2 Senior Lien88513BY46 CPThomson Reuters Corporation11/04/2015 09/01/2015 2,000,000.00 1,997,933.33--- 1,999,600.00733.34 0.000 0.212AA256350004 LC-PF-2 Sales Tax Revenue Bond6116M3YC5 CPMonsanto Company11/12/2015 09/16/2015 2,600,000.00 2,597,656.39--- 2,599,376.00 1,165.67 0.000 0.206AA256350001 LC-Project Fund-2 Senior Lien6116M3YC5 CPMonsanto Company11/12/2015 09/16/2015 2,100,000.00 2,098,107.08--- 2,099,496.00941.50 0.000 0.206AA256350004 LC-PF-2 Sales Tax Revenue Bond57163UX50 CPMarriott International, Inc.10/05/2015 08/13/2015 2,700,000.00 2,698,162.49--- 2,699,946.0096.00 0.000 0.180AA256350022 LC-Sr Lien Ob Fund-1 Interest92939BXU7 CP Wells Fargo Commercial Mortgage Trust 2014-LC16 10/28/2015 09/28/2015 700,000.00 699,746.25 --- 699,909.00 145.25 0.000 0.173AA256350001 LC-Project Fund-2 Senior Lien28103BY22 CPEdison International11/02/2015 09/28/2015 1,350,000.00 1,349,448.75--- 1,349,743.50247.50 0.000 0.214AA256350004 LC-PF-2 Sales Tax Revenue Bond28103BY22 CPEdison International11/02/2015 09/28/2015 2,300,000.00 2,299,060.84--- 2,299,563.00421.66 0.000 0.214AA256350001 LC-Project Fund-2 Senior Lien07787QXN1 CPThe Bell Telephone Company of Canada Or Bell Canad10/22/2015 09/15/2015 1,900,000.00 1,899,179.83--- 1,899,810.00275.50 0.000 0.172AA256350001 LC-Project Fund-2 Senior Lien77434MX18 CPRockwell Collins, Inc.10/01/2015 08/13/2015 2,000,000.00 1,998,802.22--- 2,000,000.000.00 0.000 0.000AA256350004 LC-PF-2 Sales Tax Revenue Bond92939BXN3 CPWells Fargo Commercial Mortgage Trust 2014-LC16 10/22/2015 09/21/2015 2,500,000.00 2,498,952.78--- 2,499,750.00508.33 0.000 0.172AA256350001 LC-Project Fund-2 Senior Lien92939BXN3 CPWells Fargo Commercial Mortgage Trust 2014-LC16 10/22/2015 09/21/2015 2,000,000.00 1,999,162.22--- 1,999,800.00406.67 0.000 0.172AA256350004 LC-PF-2 Sales Tax Revenue Bond25737MXS2 CPDominion Gas Holdings, LLC10/26/2015 09/01/2015 2,000,000.00 1,998,728.88--- 1,999,760.00371.12 0.000 0.173AAA256350001 LC-Project Fund-2 Senior Lien25737MXS2 CPDominion Gas Holdings, LLC10/26/2015 09/01/2015 2,000,000.00 1,998,728.88--- 1,999,760.00371.12 0.000 0.173AAA256350001 LC-Project Fund-2 Senior Lien8426E3X93 CPSouthern Company Funding Corporation10/09/2015 09/10/2015 1,100,000.00 1,099,610.12--- 1,099,956.0063.55 0.000 0.180AA256350001 LC-Project Fund-2 Senior Lien26244JXK0 CPDuke Energy Corporation10/19/2015 09/01/2015 2,000,000.00 1,998,851.11--- 1,999,840.00280.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien83701MXF1 CPSouth Carolina Fuel Company, Inc.10/15/2015 09/21/2015 2,000,000.00 1,999,440.00--- 1,999,860.00186.67 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond83701MXF1 CPSouth Carolina Fuel Company, Inc.10/15/2015 09/21/2015 2,300,000.00 2,299,356.00--- 2,299,839.00214.67 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond2574P1XK3 CPDominion Resources, Inc.10/19/2015 08/24/2015 2,700,000.00 2,698,012.50--- 2,699,784.00459.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien2574P1XK3 CPDominion Resources, Inc.10/19/2015 08/24/2015 2,000,000.00 1,998,444.44--- 1,999,840.00340.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien44890NX13 CPHyundai Capital America10/01/2015 08/11/2015 2,000,000.00 1,998,640.00--- 2,000,000.000.00 0.000 0.000AA205091001 LC-2013 A Capitalized Interest 037833AJ9 CorporateApple Inc.05/03/2018 06/17/2015 3,000,000.00 2,960,430.00--- 2,985,990.00 21,832.30 1.000 1.183AA256350005 LC-Project Fund-Toll 236962G7H1 Corporate General Electric Capital Corporation05/15/2017 09/23/2015115,000.00 115,155.25 04/13/2017 115,116.15(37.45) 0.601 0.548AA256350005 LC-Project Fund-Toll 200138CAA6 Corporate AIG GLOBAL FDG SR SECD MEDIUMTERM NTS 12/15/2017 06/22/2015 300,000.00 300,696.00 --- 300,657.00 34.92 1.650 1.548A256350022LC-Sr Lien Ob Fund-1 Interest38144LAB6CorporateThe Goldman Sachs Group, Inc.09/01/201707/03/2013300,000.00322,515.00---326,022.0015,109.756.2501.640A256350022 LC Sr Lien Ob Fund 1 Interest38144LAB6CorporateThe Goldman Sachs Group, Inc.09/01/201707/03/2013300,000.00322,515.00326,022.0015,109.756.2501.640A256350005 LC-Project Fund-Toll 2553794AA6 Corporate MUFG Americas Holdings Corporation02/09/2018 06/11/2015300,000.00 298,716.00 01/09/2018 299,235.00378.48 1.625 1.736A256350005 LC-Project Fund-Toll 289153UAE1 Corporate Total Capital Canada Ltd. 01/15/2018 06/10/2015 300,000.00 300,000.00 --- 300,534.00 534.00 1.450 1.371 AA256350005 LC-Project Fund-Toll 2718172AA7 Corporate Philip Morris International Inc. 05/16/2018 06/23/2015 250,000.00 277,717.50 --- 276,110.00 867.17 5.650 1.576A256350005 LC-Project Fund-Toll 261746BDC7 Corporate Morgan Stanley10/18/2016 09/25/2015250,000.00 249,670.00--- 249,507.50(163.36) 0.737 0.938A256350005 LC-Project Fund-Toll 2822582AZ5 Corporate Shell International Finance B.V. 11/15/2016 06/12/2015 300,000.00 300,429.00 --- 300,669.00 327.19 0.900 0.701 AA256350022 LC-Sr Lien Ob Fund-1 Interest38143USC6 Corporate The Goldman Sachs Group, Inc. 02/07/2016 07/03/2013 600,000.00 627,936.00 --- 605,748.00 1,878.38 3.625 0.896A256350005 LC-Project Fund-Toll 2166754AK7 Corporate CHEVRON PHILLIPS CHEM CO LLC / CHEVRON 05/01/2018 06/11/2015 300,000.00 299,631.00 --- 299,322.00 (346.23) 1.700 1.790A256350005 LC-Project Fund-Toll 222546QAM9 Corporate Credit Suisse AG 05/26/2017 09/22/2015 250,000.00 249,357.50 --- 249,152.50 (211.33) 0.822 1.040A256350022 LC-Sr Lien Ob Fund-1 Interest05565QCC0 Corporate BP Capital Markets P.L.C. 11/06/2017 07/03/2013 300,000.00 292,194.00 --- 299,550.00 3,418.58 1.375 1.448A256350005 LC-Project Fund-Toll 226442CAD6 Corporate Duke Energy Carolinas, LLC 04/15/2018 06/11/2015 116,000.00 127,422.52 --- 126,318.20 50.93 5.100 1.519 AA205091001 LC-2013 A Capitalized Interest 166764AE0 CorporateChevron Corporation06/24/2018 06/17/2015 2,200,000.00 2,213,552.00 05/24/2018 2,217,072.00 4,775.49 1.718 1.418AA256350022 LC-Sr Lien Ob Fund-1 Interest166764AE0 Corporate Chevron Corporation06/24/2018 06/17/2015300,000.00 301,848.00 05/24/2018 302,328.00651.20 1.718 1.418AA256350005 LC-Project Fund-Toll 2084664CD1 Corporate Berkshire Hathaway Finance Corporation01/12/2018 08/11/2015300,000.00 300,162.00--- 298,782.00 (1,371.18) 0.586 0.775AA256350022 LC-Sr Lien Ob Fund-1 Interest891145TN4 Corporate The Toronto-Dominion Bank03/13/2017 05/21/2015 1,000,000.00 1,010,240.00--- 1,006,670.00 (1,623.45) 1.500 1.036AAA205091001 LC-2013 A Capitalized Interest 084664BE0 CorporateBerkshire Hathaway Finance Corporation05/15/2018 06/17/2015800,000.00 890,632.00--- 881,400.00(791.97) 5.400 1.436AA256350022 LC-Sr Lien Ob Fund-1 Interest48121CYK6 Corporate JPMorgan Chase Bank, National Association10/01/2017 07/03/2013300,000.00 341,424.00--- 324,183.00 4,029.99 6.000 1.880A256350005 LC-Project Fund-Toll 274153WCE7 Corporate Pricoa Global Funding I 08/18/2017 06/10/2015 300,000.00 299,511.00 --- 299,151.00 (426.84) 1.350 1.503 AA256350022 LC-Sr Lien Ob Fund-1 Interest89236TAY1 Corporate Toyota Motor Credit Corporation10/24/2018 06/17/2015500,000.00 505,870.00--- 505,240.00(159.77) 2.000 1.648AA205091001 LC-2013 A Capitalized Interest 89236TAY1 CorporateToyota Motor Credit Corporation10/24/2018 06/17/2015 2,000,000.00 2,023,480.00--- 2,020,960.00(639.06) 2.000 1.648AA256350005 LC-Project Fund-Toll 292976WBH8 Corporate Wells Fargo & Company02/01/2018 06/22/2015200,000.00 221,176.00--- 218,850.00(200.71) 5.750 1.621AA256350005 LC-Project Fund-Toll 2928668AF9 Corporate Volkswagen Group of America Finance, LLC 11/20/2017 06/11/2015 300,000.00 300,525.00 --- 287,835.00 (12,628.54) 1.6003.586A256350005 LC-Project Fund-Toll 206050TLY6 Corporate Bank of America, National Association03/26/2018 06/10/2015300,000.00 298,968.00--- 299,763.00685.72 1.650 1.683A256350004 LC-PF-2 Sales Tax Revenue Bond91324PCJ9 CorporateUnitedHealth Group Incorporated01/17/2017 08/03/2015395,000.00 395,302.97--- 394,992.10(278.86) 0.744 0.759A256350001 LC-Project Fund-2 Senior Lien91324PCJ9 CorporateUnitedHealth Group Incorporated01/17/2017 08/03/2015290,000.00 290,222.43--- 289,994.20(204.73) 0.744 0.759A256350005 LC-Project Fund-Toll 2233851BF0 Corporate Daimler Finance North America LLC 08/01/2017 06/12/2015 300,000.00 299,250.00 --- 296,160.00 (3,191.76) 1.375 2.089A256350005 LC-Project Fund-Toll 241283LAB1 Corporate Harley-Davidson Financial Services, Inc. 03/15/2017 06/22/2015 250,000.00 256,430.00 --- 254,882.50 (563.89) 2.700 1.343A205091001 LC-2013 A Capitalized Interest 89114QAE8 CorporateThe Toronto-Dominion Bank10/19/2016 07/08/2013750,000.00 776,452.50--- 762,412.50 3,810.12 2.375 0.793AA205091001 LC-2013 A Capitalized Interest 459200GX3 CorporateInternational Business Machines Corporation07/22/2016 07/10/2013465,000.00 477,936.30--- 470,342.85 1,847.58 1.950 0.528AA256350005 LC-Project Fund-Toll 2073928S46 Corporate JPMorgan Chase & Co. 11/21/2016 09/23/2015 160,000.00 159,833.60 --- 159,676.80 (159.16) 0.723 0.914A256350022 LC-Sr Lien Ob Fund-1 Interest02580ECC5 Corporate American Express Bank, FSB. 09/13/2017 07/08/2013 250,000.00 287,890.00 --- 271,012.50 2,869.60 6.000 1.610A256350005 LC-Project Fund-Toll 291159HHD5 CorporateU.S. Bancorp05/15/2017 06/11/2015300,000.00 303,276.00 04/15/2017 302,685.00(74.07) 1.650 1.063AA256350005 LC-Project Fund-Toll 246623EKD0 Corporate JPMorgan Chase & Co. 03/01/2018 06/10/2015 300,000.00 299,310.00 02/01/2018 299,319.00 (66.61) 1.700 1.796A256350005 LC-Project Fund-Toll 294974BEZ9 Corporate Wells Fargo & Company12/15/2016 06/12/2015300,000.00 307,113.00--- 305,979.00237.15 2.625 0.961AA256350005 LC-Project Fund-Toll 289837LAA3 Corporate The Trustees of Princeton University03/01/2019---620,000.00 690,247.32--- 686,879.40 1,450.50 4.950 1.690AAA256350005 LC-Project Fund-Toll 2172967GQ8 Corporate Citigroup Inc. 04/01/2016 09/25/2015 80,000.00 80,093.60 --- 80,093.60 0.51 1.074 0.858A256350005 LC-Project Fund-Toll 240428HPQ9 Corporate HSBC USA Inc. 03/05/2018 08/17/2015 145,000.00 144,315.60 --- 144,602.70 256.84 1.700 1.816 AA256350022 LC-Sr Lien Ob Fund-1 Interest233851AT1 Corporate Daimler Finance North America LLC 01/11/2016 07/08/2013 500,000.00 497,995.00 --- 500,570.00 795.44 1.250 0.840A205091001 LC-2013 A Capitalized Interest 78008K5V1 CorporateRoyal Bank of Canada04/19/2016 07/08/2013 2,000,000.00 2,099,900.00--- 2,025,600.00 5,580.89 2.875 0.552AAPage 4 of 3356 Source Account Account IdentifierSecurity Type CategoryIssuerFinal Maturity Trade Date Current Face Value Original CostNext Call DateBase Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Investment Category for quarter ended September 30, 2015256350005 LC-Project Fund-Toll 238141GRC0 Corporate The Goldman Sachs Group, Inc. 01/22/2018 06/10/2015 80,000.00 81,027.20 --- 81,044.80 131.39 2.375 1.795A256350005 LC-Project Fund-Toll 220030NAP6 Corporate Comcast Corporation01/15/2017 06/10/2015300,000.00 325,509.00--- 320,505.00(276.93) 6.500 1.152A256350005 LC-Project Fund-Toll 207330NAG0 Corporate Branch Banking and Trust Company12/01/2016 06/12/2015300,000.00 300,138.00 11/01/2016 300,240.00130.69 1.050 0.976A256350005 LC-Project Fund-Toll 269349LAP3 Corporate PNC Realty Investors, Inc. 11/01/2016 06/12/2015 300,000.00 300,210.00 10/02/2016 300,462.00 297.95 1.150 0.996A205091001 LC-2013 A Capitalized Interest 44328MAL8 CorporateHSBC Bank PLC05/24/2016--- 3,625,000.00 3,799,301.25--- 3,678,468.75 13,538.41 3.100 0.819AA205091001 LC-2013 A Capitalized Interest 30231GAL6 CorporateExxon Mobil Corporation03/06/2018 06/10/2015580,000.00 579,344.60--- 581,368.80 1,951.86 1.305 1.206AAA256350022 LC-Sr Lien Ob Fund-1 Interest30231GAL6 Corporate Exxon Mobil Corporation03/06/2018 06/10/2015420,000.00 419,525.40--- 420,991.20 1,413.41 1.305 1.206AAA256350005 LC-Project Fund-Toll 255279HAH3 CorporateManufacturers and Traders Trust Company07/25/2017 09/18/2015250,000.00 248,907.50--- 249,762.50841.97 0.595 0.656A256350005 LC-Project Fund-Toll 259217GBE8 Corporate Metropolitan Life Global Funding I 04/10/2017 08/10/2015 300,000.00 300,615.00 --- 299,952.00 (613.27) 0.663 0.684 AA256350022 LC-Sr Lien Ob Fund-1 Interest94974BGF1 Corporate Wells Fargo & Company01/30/2020 06/03/2015 1,000,000.00 991,540.00--- 997,550.00 5,450.78 2.150 2.209AA256350005 LC-Project Fund-Toll 238141GEG5 Corporate The Goldman Sachs Group, Inc. 03/22/2016 09/17/2015 50,000.00 49,992.00 --- 49,988.50 (3.90) 0.769 0.826A256350005 LC-Project Fund-Toll 2002799AM6 Corporate Abbey National Treasury Services PLC 03/13/2017 06/11/2015 300,000.00 300,810.00 --- 299,988.00 (689.04) 1.375 1.378A256350005 LC-Project Fund-Toll 290261XHH8 CorporateUBS AG03/26/2018 06/22/2015250,000.00 249,357.50--- 249,872.50451.83 1.800 1.821A256350005 LC-Project Fund-Toll 2037833AM2 Corporate Apple Inc. 05/05/2017 06/10/2015 300,000.00 300,957.00 --- 301,155.00 345.50 1.050 0.807 AA205091001 LC-2013 A Capitalized Interest 89153VAC3 CorporateTotal Capital International06/28/2017 07/08/2013160,000.00 157,765.60--- 161,171.20 2,172.59 1.550 1.125AA256350005 LC-Project Fund-Toll 2532457BK3 Corporate Eli Lilly and Company03/01/2018 06/10/2015300,000.00 298,908.00--- 299,823.00797.34 1.250 1.275AA256350022 LC-Sr Lien Ob Fund-1 Interest46625HJL5 Corporate JPMorgan Chase & Co. 05/15/2018 06/03/2015 500,000.00 497,550.00 --- 496,905.00 (901.99) 1.625 1.867A205091001 LC-2013 A Capitalized Interest 90327QCW7 CorporateUSAA Capital Corporation12/13/2016 07/11/2013 4,000,000.00 4,145,440.00--- 4,068,760.00 16,866.14 2.250 0.811AA256350022 LC-Sr Lien Ob Fund-1 Interest63307EAB3 Corporate National Bank of Canada 10/19/2016 05/21/2015 900,000.00 918,414.00 --- 912,393.00 (1,477.17) 2.200 0.883 AAA256350005 LC-Project Fund-Toll 2209111ET6 Corporate Consolidated Edison Company of New York, Inc. 04/01/2018 06/22/2015 220,000.00 245,828.00 --- 242,968.00 (422.25) 5.850 1.579A256350005 LC-Project Fund-Toll 230231GAL6 Corporate Exxon Mobil Corporation03/06/2018 06/11/2015300,000.00 299,583.00--- 300,708.00 1,079.67 1.305 1.206AAA256350005 LC-Project Fund-Toll 2063679ZT4 Corporate Bank of Montreal 01/30/2017 06/12/2015 300,000.00 304,620.00 --- 304,122.00 325.43 1.950 0.911 AAA256350005 LC-Project Fund-Toll 221686CAD2 Corporate Rabobank Nederland01/19/2017 06/10/2015300,000.00 310,389.00--- 308,322.00(155.60) 3.375 1.221AA256350005 LC-Project Fund-Toll 238141GVK7 Corporate The Goldman Sachs Group, Inc. 04/30/2018 08/12/2015 190,000.00 191,951.30 --- 191,626.40 (235.94) 1.497 1.183A256350005 LC-Project Fund-Toll 259217GAY5 Corporate Metropolitan Life Global Funding I 01/10/2018 06/12/2015 300,000.00 299,646.00 --- 299,517.00 (169.19) 1.500 1.572 AA256350022 LC-Sr Lien Ob Fund-1 Interest78011DAC8 Corporate Royal Bank of Canada 09/19/2017 05/21/2015 1,000,000.00 1,001,090.00 --- 1,000,090.00 (842.96) 1.200 1.195 AAA205091001 LC-2013 A Capitalized Interest 822582AC6 CorporateShell International Finance B.V.03/22/2017 07/08/2013400,000.00 449,936.00--- 423,240.00 2,935.77 5.200 1.221AA205091001 LC-2013 A Capitalized Interest 742718DV8 CorporateThe Procter & Gamble Company08/15/2016 07/10/2013 1,240,000.00 1,256,033.20--- 1,250,726.00 6,139.25 1.450 0.458AA256350005 LC-Project Fund-Toll 2064159CQ7 Corporate The Bank of Nova Scotia 07/15/2016 06/12/2015 300,000.00 302,034.00 --- 301,587.00 98.26 1.375 0.703 AA256350005 LC-Project Fund-Toll 2842434CN0 Corporate Southern California Gas Company06/15/2018 06/15/2015250,000.00 249,992.50--- 249,677.50(315.65) 1.550 1.599AA256350005LC-Project Fund-Toll 20258M0DN6CorporateAmerican Express Credit Corporation06/05/201709/22/2015200,000.00198,994.00---198,890.00(113.75)0.6020.944A256350005 LC Project Fund Toll 20258M0DN6CorporateAmerican Express Credit Corporation06/05/201709/22/2015200,000.00198,994.00198,890.00(113.75)0.6020.944A256350005 LC-Project Fund-Toll 291324PCF7 Corporate UnitedHealth Group Incorporated12/15/2017 06/11/2015300,000.00 300,543.00--- 299,691.00(789.29) 1.400 1.447A256350023 LC-Sr Lien Reserve Fund-1 9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.0097,855.40--- 97,855.400.00 0.000 0.000NA256350022 LC-Sr Lien Ob Fund-1 Interest 9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.00 113,895.31--- 113,895.310.00 0.000 0.000NA205091001 LC-2013 A Capitalized Interest 9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.00 658,401.61--- 658,401.610.00 0.000 0.000NA256350001 LC-Project Fund-2 Senior Lien9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/24/20150.0096,989.48--- 96,989.480.00 0.000 0.000NA256350004 LC-PF-2 Sales Tax Revenue Bond9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/25/20150.0085,658.14--- 85,658.140.00 0.000 0.000NA256350005 LC-Project Fund-Toll 2 9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/29/20150.00 191,858.42--- 191,858.420.00 0.000 0.000NA205091001 LC-2013 A Capitalized Interest 184126YS3 MuniClayton County Water Authority05/01/2017 07/11/2013770,000.00 755,939.80--- 774,881.80 10,872.84 1.300 0.896AA205091001 LC-2013 A Capitalized Interest 64966H4E7 MuniNew York, City of10/01/2017 07/12/2013 1,170,000.00 1,238,222.70--- 1,205,708.40 2,650.27 3.140 1.586AA256350004 LC-PF-2 Sales Tax Revenue Bond407288YD5 MuniHamilton, County of12/01/2015 07/18/2013 6,645,000.00 6,645,000.00--- 6,648,322.50 3,322.50 0.803 0.506AA205091001 LC-2013 A Capitalized Interest 407288YD5 MuniHamilton, County of12/01/2015 07/18/2013 2,080,000.00 2,080,000.00--- 2,081,040.00 1,040.00 0.803 0.506AA256350005 LC-Project Fund-Toll 265819WAC7 Muni North Carolina Eastern Municipal Power Agency07/01/2018---160,000.00 160,404.60--- 161,900.80 1,504.29 2.003 1.560A256350022 LC-Sr Lien Ob Fund-1 Interest407288YD5 Muni Hamilton, County of12/01/2015 07/18/2013630,000.00 630,000.00--- 630,315.00315.00 0.803 0.506AA256350005 LC-Project Fund-Toll 2180848HP1 Muni Clark, County of07/01/2017 07/06/2015120,000.00 126,764.40--- 126,045.6052.83 4.300 1.380AA256350005 LC-Project Fund-Toll 24197915E4 Muni Hawaii, State of08/01/2016 06/29/2015300,000.00 300,321.00--- 300,435.00184.17 0.731 0.557AA256350022 LC-Sr Lien Ob Fund-1 Interest235219JS2 Muni Dallas, City of02/15/2017 07/10/2013650,000.00 650,000.00--- 658,248.50 8,248.50 1.589 0.660AA205091001 LC-2013 A Capitalized Interest 235219JS2 MuniDallas, City of02/15/2017 07/10/2013 2,135,000.00 2,135,000.00--- 2,162,093.15 27,093.15 1.589 0.660AA256350005 LC-Project Fund-Toll 249130TRY4 Muni Kentucky Housing Corporation01/01/2017 06/17/2015275,000.00 274,634.25--- 274,612.25(87.74) 0.937 1.050AAA256350005 LC-Project Fund-Toll 213063A5D2 Muni California, State of04/01/2016 06/29/2015315,000.00 327,521.25--- 323,659.35146.92 5.950 0.469AA256350023 LC-Sr Lien Reserve Fund-1912828B58 US GovTreasury, United States Department of01/31/2021 05/15/2015500,000.00 512,578.13--- 515,975.00 4,179.35 2.125 1.499AAA256350005 LC-Project Fund-Toll 2912828TG5 US GovTreasury, United States Department of07/31/2017 08/25/2015675,000.00 672,969.73--- 673,751.25679.02 0.500 0.602AAA205091001 LC-2013 A Capitalized Interest 912828SY7 US GovTreasury, United States Department of05/31/2017 07/05/2013 3,900,000.00 3,828,550.78--- 3,902,886.00 33,767.99 0.625 0.580AAA205091001 LC-2013 A Capitalized Interest 912828UB4 US GovTreasury, United States Department of11/30/2019 06/17/2015 2,500,000.00 2,433,398.44--- 2,475,075.00 37,518.51 1.000 1.246AAA256350005 LC-Project Fund-Toll 2912828UZ1 US GovTreasury, United States Department of04/30/2018--- 1,950,000.00 1,925,332.03--- 1,939,996.50 12,204.35 0.625 0.826AAA256350005 LC-Project Fund-Toll 2912828KQ2 US GovTreasury, United States Department of05/15/2019 06/17/2015600,000.00 638,062.50--- 642,594.00 7,237.85 3.125 1.121AAA256350023 LC-Sr Lien Reserve Fund-1912828UF5 US GovTreasury, United States Department of12/31/2019---500,000.00 493,388.87--- 497,120.00 3,108.52 1.125 1.265AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828RX0 US GovTreasury, United States Department of12/31/2016 09/13/2013950,000.00 945,212.89--- 954,759.50 6,593.05 0.875 0.472AAA256350005 LC-Project Fund-Toll 2912828UA6 US GovTreasury, United States Department of11/30/2017---865,000.00 860,628.32--- 863,425.70 2,387.32 0.625 0.710AAA205091001 LC-2013 A Capitalized Interest 912828J84 US GovTreasury, United States Department of03/31/2020 06/03/2015 4,300,000.00 4,243,023.44--- 4,312,986.00 66,271.31 1.375 1.306AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828J84 US GovTreasury, United States Department of03/31/2020---950,000.00 936,470.70--- 952,869.00 15,583.56 1.375 1.306AAA256350023 LC-Sr Lien Reserve Fund-1912828VB3 US GovTreasury, United States Department of05/15/2023 07/05/2013 3,500,000.00 3,253,085.94--- 3,470,180.00 166,442.47 1.750 1.870AAA256350023 LC-Sr Lien Reserve Fund-1912828KQ2 US GovTreasury, United States Department of05/15/2019 07/05/2013500,000.00 539,902.34--- 535,495.00 10,338.92 3.125 1.121AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828UA6 US GovTreasury, United States Department of11/30/2017 07/05/2013 1,250,000.00 1,214,648.44--- 1,247,725.00 15,371.78 0.625 0.710AAA205091001 LC-2013 A Capitalized Interest 912828UA6 US GovTreasury, United States Department of11/30/2017 07/05/2013 1,750,000.00 1,700,507.81--- 1,746,815.00 21,520.49 0.625 0.710AAA256350005 LC-Project Fund-Toll 2912828J84 US GovTreasury, United States Department of03/31/2020--- 1,800,000.00 1,778,156.26--- 1,805,436.00 26,176.26 1.375 1.306AAA256350023 LC-Sr Lien Reserve Fund-1912833KR0 US GovTreasury, United States Department of05/15/2018 07/05/2013380,000.00 353,517.80--- 371,393.00 5,932.52 0.000 0.875AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828K41 US GovTreasury, United States Department of04/30/2017 07/30/2015200,000.00 200,001.77--- 199,860.00(141.60) 0.089 0.134AAA256350023 LC-Sr Lien Reserve Fund-1912828VK3 US GovTreasury, United States Department of06/30/2018 07/05/2013 1,575,000.00 1,567,678.71--- 1,596,246.75 25,351.47 1.375 0.877AAAPage 5 of 3357 Source Account Account IdentifierSecurity Type CategoryIssuerFinal Maturity Trade Date Current Face Value Original CostNext Call DateBase Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Investment Category for quarter ended September 30, 2015256350005 LC-Project Fund-Toll 2912828K41 US GovTreasury, United States Department of04/30/2017 07/31/2015600,000.00 600,015.87--- 599,580.00(434.40) 0.089 0.134AAA205091001 LC-2013 A Capitalized Interest 912828RU6 US GovTreasury, United States Department of11/30/2016 07/05/2013 3,500,000.00 3,496,855.47--- 3,517,710.00 18,796.34 0.875 0.440AAA256350005 LC-Project Fund-Toll 2912828UB4 US GovTreasury, United States Department of11/30/2019 08/25/2015350,000.00 345,037.11--- 346,510.50 1,361.39 1.000 1.246AAA256350005 LC-Project Fund-Toll 2912828VK3 US GovTreasury, United States Department of06/30/2018--- 1,305,000.00 1,319,064.85--- 1,322,604.45 4,407.72 1.375 0.877AAA205091001 LC-2013 A Capitalized Interest 912828UZ1 US GovTreasury, United States Department of04/30/2018 06/03/2015 3,400,000.00 3,360,421.88--- 3,382,558.00 17,783.95 0.625 0.826AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828UZ1 US GovTreasury, United States Department of04/30/2018 07/14/2015700,000.00 693,656.25--- 696,409.00 2,276.31 0.625 0.826AAA256350023 LC-Sr Lien Reserve Fund-1912828TJ9 US GovTreasury, United States Department of08/15/2022 07/05/2013495,000.00 461,355.47--- 490,812.30 21,881.70 1.625 1.756AAA256350005 LC-Project Fund-Toll 297689RAE4 VRDN Wisconsin Housing and Economic Development Author10/01/2040 08/31/2015350,000.00 350,000.00 10/01/2015 350,000.000.00 0.160 0.160AAA256350004 LC-PF-2 Sales Tax Revenue Bond64468EAY6 VRDNLabor, New Hampshire Department of11/01/2020 11/04/2013 4,190,000.00 4,190,000.00 10/01/2015 4,190,000.000.00 0.160 0.160AA256350004 LC-PF-2 Sales Tax Revenue Bond64468EAZ3 VRDNLabor, New Hampshire Department of11/01/2020 07/03/2013 3,200,000.00 3,200,000.00 10/01/2015 3,200,000.000.00 0.160 0.160AA219,016,430.10 221,134,317.89221,571,538.57 966,204.76Page 6 of 3358 Source Account Account IdentifierSecurity Type Category IssuerFinal Maturity Trade DateCurrent Face Value Original CostNext Call Date Base Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit Rating205091001 LC-2013 A Capitalized Interest3130A3BD5 AgencyFederal Home Loan Banks Office of Finance04/20/2018 08/11/2015 600,000.00 601,338.00 10/20/2015600,360.00(8.43) 1.500 0.417AAA205091001 LC-2013 A Capitalized Interest313384PU7 AgencyFederal Home Loan Banks Office of Finance11/27/2015 08/31/2015 650,000.00 649,706.06---649,935.00125.42 0.000 0.063AAA205091001 LC-2013 A Capitalized Interest31392HWL3 Agency CMO Federal National Mortgage Association02/25/2018 07/12/2013 34,410.2936,324.37---35,471.85(0.12) 5.000 1.439AAA205091001 LC-2013 A Capitalized Interest31392F6C6 Agency CMO Federal National Mortgage Association12/25/2017 07/09/2013 224,805.92 238,469.91---231,192.67(984.97) 5.000 1.440AAA205091001 LC-2013 A Capitalized Interest31393EXC8 Agency CMO Federal National Mortgage Association09/25/2018 07/24/2013 301,561.62 318,807.18---312,758.60660.52 4.500 0.919AAA205091001 LC-2013 A Capitalized Interest31392BVM5 Agency CMO Federal National Mortgage Association02/25/2017 07/11/2013 45,945.4648,501.18---46,764.67(104.02) 5.500 0.996AAA205091001 LC-2013 A Capitalized Interest3136A4M89 Agency CMO Federal National Mortgage Association01/25/2019 07/05/2013 573,086.45 576,735.40---583,969.368,975.93 1.934 1.100AAA205091001 LC-2013 A Capitalized Interest3136ACGF2 Agency CMO Federal National Mortgage Association02/25/2016 07/15/2013 673,740.57 675,424.92---674,239.14626.60 1.083 0.656AAA205091001 LC-2013 A Capitalized Interest31392FPP6 Agency CMO Federal National Mortgage Association 11/25/2017 07/15/2013 141,099.66 149,433.36 --- 144,936.16 (650.38) 5.000 1.469AAA205091001 LC-2013 A Capitalized Interest3136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/08/2013 2,361,467.49 2,326,598.94--- 2,373,062.3030,681.03 1.246 0.901AAA205091001 LC-2013 A Capitalized Interest31393V2T7 Agency CMO Federal Home Loan Mortgage Corp06/15/2018 07/08/2013 567,425.63 600,141.27---586,581.92(913.67) 4.500 1.162AAA205091001 LC-2013 A Capitalized Interest3137ANLP8 Agency CMO Federal Home Loan Mortgage Corp11/25/2016 07/08/2013 3,060,908.35 3,091,278.30--- 3,079,885.9812,828.14 1.655 0.804AAA205091001 LC-2013 A Capitalized Interest31402RBG3 Agency MBS Federal National Mortgage Association09/01/2019--- 230,186.32 246,885.05---238,921.89(1,222.88) 6.000 1.701AAA205091001 LC-2013 A Capitalized Interest31410GSQ7 Agency MBS Federal National Mortgage Association12/01/2017 07/05/2013 112,757.37 121,073.23---116,800.8547.13 6.000 1.244AAA205091001 LC-2013 A Capitalized Interest31294LPZ0 Agency MBS Federal Home Loan Mortgage Corp12/01/2016 07/05/2013 107,076.66 113,200.10---108,953.71(284.03) 6.000 1.485AAA205091001 LC-2013 A Capitalized Interest36200AFG9 Agency MBS Government National Mortgage Association11/15/2017 07/09/2013 41,797.2744,540.22---43,021.10(346.94) 5.500 1.888AAA205091001 LC-2013 A Capitalized Interest3128MBTH0 Agency MBS Federal Home Loan Mortgage Corp03/01/2019 07/26/2013 99,673.96 105,654.39---103,631.02228.35 5.000 1.294AAA205091001 LC-2013 A Capitalized Interest36290WH47 Agency MBS Government National Mortgage Association09/15/2018 07/18/2013 842,243.94 894,884.19---871,166.60(5,660.95) 4.5001.389AAA205091001 LC-2013 A Capitalized Interest3128H4NR6 Agency MBS Federal Home Loan Mortgage Corp05/01/2018 07/16/2013 78,007.1482,638.81---81,104.02439.65 5.000 0.831AAA205091001 LC-2013 A Capitalized Interest31402QT68 Agency MBS Federal National Mortgage Association10/01/2019 07/11/2013 230,988.70 249,539.98---241,496.38(1,696.04) 6.000 1.795AAA205091001 LC-2013 A Capitalized Interest3128PGLY7 Agency MBS Federal Home Loan Mortgage Corp05/01/2017 07/17/2013 167,299.20 176,291.54---173,940.982,792.33 5.000 -0.959AAA205091001 LC-2013 A Capitalized Interest3128GNR59 Agency MBS Federal Home Loan Mortgage Corp10/01/2016 07/05/2013 86,397.1891,527.02---87,821.01(540.23) 6.000 2.064AAA205091001 LC-2013 A Capitalized Interest31401MWC1 Agency MBS Federal National Mortgage Association06/01/2018 07/12/2013 676,181.41 720,978.42---700,828.22923.74 4.500 1.094AAA205091001 LC-2013 A Capitalized Interest3128PHVS7 Agency MBS Federal Home Loan Mortgage Corp11/01/2019 07/16/2013 71,505.8175,349.25---74,344.59597.41 5.000 0.379AAA205091001 LC-2013 A Capitalized Interest3132FEAK7 Agency MBS Federal Home Loan Mortgage Corp12/01/2017 07/03/2013 130,980.10 138,797.98---136,180.02614.99 5.000 0.380AAA205091001 LC-2013 A Capitalized Interest037833AJ9 CorporateApple Inc.05/03/2018 06/17/2015 3,000,000.00 2,960,430.00--- 2,985,990.0021,832.30 1.000 1.183AA205091001 LC-2013 A Capitalized Interest166764AE0 CorporateChevron Corporation06/24/2018 06/17/2015 2,200,000.00 2,213,552.00 05/24/2018 2,217,072.004,775.49 1.718 1.418AA205091001 LC-2013 A Capitalized Interest084664BE0 CorporateBerkshire Hathaway Finance Corporation05/15/2018 06/17/2015 800,000.00 890,632.00---881,400.00(791.97) 5.400 1.436AA205091001 LC-2013 A Capitalized Interest89236TAY1 CorporateToyota Motor Credit Corporation10/24/2018 06/17/2015 2,000,000.00 2,023,480.00--- 2,020,960.00(639.06) 2.000 1.648AA205091001 LC-2013 A Capitalized Interest89114QAE8 CorporateThe Toronto-Dominion Bank10/19/2016 07/08/2013 750,000.00 776,452.50---762,412.503,810.12 2.375 0.793AA205091001 LC-2013 A Capitalized Interest459200GX3 CorporateInternational Business Machines Corporation07/22/2016 07/10/2013 465,000.00 477,936.30---470,342.851,847.58 1.9500.528AA205091001 LC-2013 A Capitalized Interest78008K5V1 CorporateRoyal Bank of Canada04/19/2016 07/08/2013 2,000,000.00 2,099,900.00--- 2,025,600.005,580.89 2.875 0.552AA205091001 LC-2013 A Capitalized Interest44328MAL8 CorporateHSBC Bank PLC05/24/2016--- 3,625,000.00 3,799,301.25--- 3,678,468.7513,538.41 3.100 0.819AA205091001LC 2013 A C it li d I t t30231GAL6CtEMbilC ti03/06/201806/10/2015580 000 00579 344 60581 368 801 951 861 3051 206AAASTAMP Portfolio by Account for quarter ended September 30, 2015205091001 LC-2013 A Capitalized Interest30231GAL6CorporateExxon Mobil Corporation03/06/201806/10/2015580,000.00579,344.60---581,368.801,951.861.3051.206AAA205091001 LC-2013 A Capitalized Interest89153VAC3 CorporateTotal Capital International06/28/2017 07/08/2013 160,000.00 157,765.60---161,171.202,172.59 1.550 1.125AA205091001 LC-2013 A Capitalized Interest90327QCW7 CorporateUSAA Capital Corporation12/13/2016 07/11/2013 4,000,000.00 4,145,440.00--- 4,068,760.0016,866.14 2.250 0.811AA205091001 LC-2013 A Capitalized Interest822582AC6 CorporateShell International Finance B.V.03/22/2017 07/08/2013 400,000.00 449,936.00---423,240.002,935.77 5.200 1.221AA205091001 LC-2013 A Capitalized Interest742718DV8 CorporateThe Procter & Gamble Company08/15/2016 07/10/2013 1,240,000.00 1,256,033.20--- 1,250,726.006,139.25 1.450 0.458AA205091001 LC-2013 A Capitalized Interest9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.00 658,401.61---658,401.610.00 0.000 0.000NA205091001 LC-2013 A Capitalized Interest184126YS3 MuniClayton County Water Authority05/01/2017 07/11/2013 770,000.00 755,939.80---774,881.8010,872.84 1.300 0.896AA205091001 LC-2013 A Capitalized Interest64966H4E7 MuniNew York, City of10/01/2017 07/12/2013 1,170,000.00 1,238,222.70--- 1,205,708.402,650.27 3.140 1.586AA205091001 LC-2013 A Capitalized Interest407288YD5 MuniHamilton, County of12/01/2015 07/18/2013 2,080,000.00 2,080,000.00--- 2,081,040.001,040.00 0.803 0.506AA205091001 LC-2013 A Capitalized Interest235219JS2 MuniDallas, City of02/15/2017 07/10/2013 2,135,000.00 2,135,000.00--- 2,162,093.1527,093.15 1.589 0.660AA205091001 LC-2013 A Capitalized Interest912828SY7 US GovTreasury, United States Department of05/31/2017 07/05/2013 3,900,000.00 3,828,550.78--- 3,902,886.0033,767.99 0.625 0.580AAA205091001 LC-2013 A Capitalized Interest912828UB4 US GovTreasury, United States Department of11/30/2019 06/17/2015 2,500,000.00 2,433,398.44--- 2,475,075.0037,518.51 1.000 1.246AAA205091001 LC-2013 A Capitalized Interest912828J84 US GovTreasury, United States Department of03/31/2020 06/03/2015 4,300,000.00 4,243,023.44--- 4,312,986.0066,271.31 1.375 1.306AAA205091001 LC-2013 A Capitalized Interest912828UA6 US GovTreasury, United States Department of11/30/2017 07/05/2013 1,750,000.00 1,700,507.81--- 1,746,815.0021,520.49 0.625 0.710AAA205091001 LC-2013 A Capitalized Interest912828RU6 US GovTreasury, United States Department of11/30/2016 07/05/2013 3,500,000.00 3,496,855.47--- 3,517,710.0018,796.34 0.875 0.440AAA205091001 LC-2013 A Capitalized Interest912828UZ1 US GovTreasury, United States Department of04/30/2018 06/03/2015 3,400,000.00 3,360,421.88--- 3,382,558.0017,783.95 0.625 0.826AAA60,045,035.09256350001 LC-Project Fund-2 Senior Lien3133XDDQ1 AgencyFederal Home Loan Banks Office of Finance10/20/2015 07/22/2015 175,578.19 177,388.86---176,103.17110.30 5.065 -0.314AAA256350001 LC-Project Fund-2 Senior Lien89231NAC7 Asset BackedToyota Auto Receivables 2012-B Owner Trust07/15/2016--- 20,359.5320,371.48 05/15/201620,359.53(0.57) 0.460 0.460AAA256350001 LC-Project Fund-2 Senior Lien161571FR0 Asset BackedChase Issuance Trust10/16/2017 07/07/2015 105,000.00 105,000.00---105,000.000.00 0.540 0.541AAA256350001 LC-Project Fund-2 Senior Lien91324PCJ9 CorporateUnitedHealth Group Incorporated01/17/2017 08/03/2015 290,000.00 290,222.43---289,994.20(204.73) 0.744 0.759A256350001 LC-Project Fund-2 Senior Lien27886MX65 CPEcolab Inc.10/06/2015 09/02/2015 2,000,000.00 1,999,253.34--- 1,999,960.0076.67 0.000 0.144AA256350001 LC-Project Fund-2 Senior Lien84364UX93 CPSouthern Power Company10/09/2015 09/09/2015 2,000,000.00 1,999,250.00--- 1,999,920.00120.00 0.000 0.180AA256350001 LC-Project Fund-2 Senior Lien13638XXE5 CPCanadian Natural Resources Limited10/14/2015 09/01/2015 2,000,000.00 1,998,786.67--- 1,999,880.00255.55 0.000 0.166AA256350001 LC-Project Fund-2 Senior Lien05634FXE4 CPBacardi-Martini B.V.10/14/2015 09/10/2015 2,000,000.00 1,999,131.12--- 1,999,880.00212.22 0.000 0.166AA256350001 LC-Project Fund-2 Senior Lien65475MY53 CPNissan Motor Acceptance Corporation11/05/2015 09/14/2015 2,000,000.00 1,998,700.00--- 1,999,600.00475.00 0.000 0.206AA256350001 LC-Project Fund-2 Senior Lien43357MXM7 CPHitachi Capital America Corp.10/21/2015 09/28/2015 2,000,000.00 1,999,348.34--- 1,999,820.00386.66 0.000 0.162AA256350001 LC-Project Fund-2 Senior Lien1248C3XG4 CPCBS Corporation10/16/2015 09/16/2015 1,900,000.00 1,899,303.33--- 1,899,867.00215.34 0.000 0.168AA256350001 LC-Project Fund-2 Senior Lien61979KXD1 CPMotiva Enterprises LLC10/13/2015 09/10/2015 2,000,000.00 1,999,200.00--- 1,999,880.00180.00 0.000 0.180AAA256350001 LC-Project Fund-2 Senior Lien74432KX52 CPPrudential Financial, Inc.10/05/2015 08/24/2015 2,000,000.00 1,999,043.33--- 1,999,960.0051.11 0.000 0.180AA256350001 LC-Project Fund-2 Senior Lien88513BY46 CPThomson Reuters Corporation11/04/2015 09/01/2015 2,000,000.00 1,997,933.33--- 1,999,600.00733.34 0.000 0.212AA256350001 LC-Project Fund-2 Senior Lien6116M3YC5 CPMonsanto Company11/12/2015 09/16/2015 2,100,000.00 2,098,107.08--- 2,099,496.00941.50 0.000 0.206AA256350001 LC-Project Fund-2 Senior Lien28103BY22 CPEdison International11/02/2015 09/28/2015 1,350,000.00 1,349,448.75--- 1,349,743.50247.50 0.000 0.214AA256350001 LC-Project Fund-2 Senior Lien07787QXN1 CPThe Bell Telephone Company of Canada Or Bell Canada10/22/2015 09/15/20151,900,000.00 1,899,179.83--- 1,899,810.00275.50 0.000 0.172AA256350001 LC-Project Fund-2 Senior Lien77434MX18 CPRockwell Collins, Inc.10/01/2015 08/13/2015 2,000,000.00 1,998,802.22--- 2,000,000.000.00 0.000 0.000AA256350001 LC-Project Fund-2 Senior Lien92939BXN3 CPWells Fargo Commercial Mortgage Trust 2014-LC1610/22/2015 09/21/2015 2,000,000.00 1,999,162.22--- 1,999,800.00406.67 0.000 0.172AA256350001 LC-Project Fund-2 Senior Lien25737MXS2 CPDominion Gas Holdings, LLC10/26/2015 09/01/2015 2,000,000.00 1,998,728.88--- 1,999,760.00371.12 0.000 0.173AAA256350001 LC-Project Fund-2 Senior Lien8426E3X93 CPSouthern Company Funding Corporation10/09/2015 09/10/2015 1,100,000.00 1,099,610.12--- 1,099,956.0063.55 0.000 0.180AA256350001 LC-Project Fund-2 Senior Lien26244JXK0 CPDuke Energy Corporation10/19/2015 09/01/2015 2,000,000.00 1,998,851.11--- 1,999,840.00280.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien83701MXF1 CPSouth Carolina Fuel Company, Inc.10/15/2015 09/21/2015 2,000,000.00 1,999,440.00--- 1,999,860.00186.67 0.000 0.180AA256350001 LC-Project Fund-2 Senior Lien2574P1XK3 CPDominion Resources, Inc.10/19/2015 08/24/2015 2,000,000.00 1,998,444.44---1,999,840.00340.00 0.000 0.160AA256350001 LC-Project Fund-2 Senior Lien44890NX13 CPHyundai Capital America10/01/2015 08/11/2015 2,000,000.00 1,998,640.00--- 2,000,000.000.00 0.000 0.000AA256350001 LC-Project Fund-2 Senior Lien9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/24/20150.0096,989.48---96,989.480.00 0.000 0.000NAPage 7 of 33ATTACHMENT 359 Source Account Account IdentifierSecurity Type Category IssuerFinal Maturity Trade DateCurrent Face Value Original CostNext Call Date Base Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Account for quarter ended September 30, 201541,034,918.88256350004 LC-PF-2 Sales Tax Revenue Bond89231NAC7 Asset BackedToyota Auto Receivables 2012-B Owner Trust07/15/2016 02/14/2014 18,106.6318,118.66 05/15/201618,106.63(0.58) 0.460 0.460AAA256350004 LC-PF-2 Sales Tax Revenue Bond91324PCJ9 CorporateUnitedHealth Group Incorporated01/17/2017 08/03/2015 395,000.00 395,302.97---394,992.10(278.86) 0.744 0.759A256350004 LC-PF-2 Sales Tax Revenue Bond84364UX93 CPSouthern Power Company10/09/2015 09/09/2015 2,500,000.00 2,499,062.50--- 2,499,900.00150.00 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond05333UXK1 CPAutoZone, Inc.10/19/2015 09/22/2015 2,500,000.00 2,499,250.00--- 2,499,800.00300.00 0.000 0.160AA256350004 LC-PF-2 Sales Tax Revenue Bond13638XXE5 CPCanadian Natural Resources Limited10/14/2015 08/31/2015 2,750,000.00 2,748,151.40--- 2,749,835.00381.18 0.000 0.166AA256350004 LC-PF-2 Sales Tax Revenue Bond65475MY53 CPNissan Motor Acceptance Corporation11/05/2015 09/14/2015 2,300,000.00 2,298,505.00--- 2,299,540.00546.25 0.000 0.206AA256350004 LC-PF-2 Sales Tax Revenue Bond43357MXM7 CPHitachi Capital America Corp.10/21/2015 09/28/2015 2,300,000.00 2,299,250.59--- 2,299,793.00444.66 0.000 0.162AA256350004 LC-PF-2 Sales Tax Revenue Bond27743KY20 CPEastman Chemical Company11/02/2015 09/28/2015 1,500,000.00 1,499,343.75--- 1,499,715.00315.00 0.000 0.214AA256350004 LC-PF-2 Sales Tax Revenue Bond20279WX89 CPCommonwealth Edison Company10/08/2015 08/24/2015 2,700,000.00 2,698,415.99--- 2,699,919.00171.00 0.000 0.154AA256350004 LC-PF-2 Sales Tax Revenue Bond88513BY46 CPThomson Reuters Corporation11/04/2015 09/01/2015 2,000,000.00 1,997,933.33--- 1,999,600.00733.34 0.000 0.212AA256350004 LC-PF-2 Sales Tax Revenue Bond6116M3YC5 CPMonsanto Company11/12/2015 09/16/2015 2,600,000.00 2,597,656.39--- 2,599,376.001,165.67 0.000 0.206AA256350004 LC-PF-2 Sales Tax Revenue Bond57163UX50 CPMarriott International, Inc.10/05/2015 08/13/2015 2,700,000.00 2,698,162.49--- 2,699,946.0096.00 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond28103BY22 CPEdison International11/02/2015 09/28/2015 2,300,000.00 2,299,060.84--- 2,299,563.00421.66 0.000 0.214AA256350004 LC-PF-2 Sales Tax Revenue Bond92939BXN3 CPWells Fargo Commercial Mortgage Trust 2014-LC1610/22/2015 09/21/2015 2,500,000.00 2,498,952.78--- 2,499,750.00508.33 0.000 0.172AA256350004 LC-PF-2 Sales Tax Revenue Bond25737MXS2 CPDominion Gas Holdings, LLC10/26/2015 09/01/2015 2,000,000.00 1,998,728.88--- 1,999,760.00371.12 0.000 0.173AAA256350004 LC-PF-2 Sales Tax Revenue Bond83701MXF1 CPSouth Carolina Fuel Company, Inc.10/15/2015 09/21/2015 2,300,000.00 2,299,356.00--- 2,299,839.00214.67 0.000 0.180AA256350004 LC-PF-2 Sales Tax Revenue Bond2574P1XK3 CPDominion Resources, Inc.10/19/2015 08/24/2015 2,700,000.00 2,698,012.50--- 2,699,784.00459.00 0.000 0.160AA256350004 LC-PF-2 Sales Tax Revenue Bond9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/25/20150.0085,658.14---85,658.140.00 0.000 0.000NA256350004 LC-PF-2 Sales Tax Revenue Bond407288YD5 MuniHamilton, County of12/01/2015 07/18/2013 6,645,000.00 6,645,000.00--- 6,648,322.503,322.50 0.803 0.506AA256350004 LC-PF-2 Sales Tax Revenue Bond64468EAY6 VRDNLabor, New Hampshire Department of11/01/2020 11/04/2013 4,190,000.00 4,190,000.00 10/01/2015 4,190,000.000.00 0.160 0.160AA256350004 LC-PF-2 Sales Tax Revenue Bond64468EAZ3 VRDNLabor, New Hampshire Department of11/01/2020 07/03/2013 3,200,000.00 3,200,000.00 10/01/2015 3,200,000.000.00 0.160 0.160AA50,183,199.37256350005 LC-Project Fund-Toll 23130A6G92 AgencyFederal Home Loan Banks Office of Finance06/21/2016 09/14/2015 350,000.00 350,000.00---350,000.000.00 0.245 0.249AAA256350005 LC-Project Fund-Toll 23133EECD0 AgencyFederal Farm Credit Banks Consolidated Systemwide Bonds06/20/2017 06/15/2015 900,000.00 900,554.67---900,153.00(320.92) 0.246 0.240AAA256350005 LC-Project Fund-Toll 238377UN20 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T01/20/2040 06/24/2015 152,071.90 154,804.44---154,202.43(607.56) 3.000 1.429AAA256350005 LC-Project Fund-Toll 23137A2AZ4 Agency CMO Federal Home Loan Mortgage Corp05/25/2020 07/01/2015 411,787.99 424,205.97---423,935.73892.02 2.757 1.063AAA256350005 LC-Project Fund-Toll 238378BR35 Agency CMO Government National Mortgage Association11/16/2042 07/10/2015 345,332.27337,562.30---338,701.89955.80 1.333 2.142AAA256350005 LC-Project Fund-Toll 23136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/02/2015 161,533.61 162,259.25---162,326.74165.85 1.246 0.901AAA256350005 LC-Project Fund-Toll 23137A85H7 Agency CMO Federal Home Loan Mortgage Corp12/15/2039 07/13/2015 173,538.35 180,913.73---182,329.801,306.24 3.500 1.587AAA256350005 LC-Project Fund-Toll 23137A1LC5 Agency CMO Federal Home Loan Mortgage Corp08/15/2020 08/31/2015 112,372.80 114,163.74---114,320.22180.22 2.000 0.917AAA256350005 LC-Project Fund-Toll 23133XY2H7 Agency CMO Federal Home Loan Banks Office of Finance04/20/2017 07/13/2015 301,522.28 309,719.92---309,144.76(5.47) 2.900 0.954AAA256350005 LC-Project Fund-Toll 23137AHXC7 Agency CMO Federal Home Loan Mortgage Corp11/15/2021 06/18/2015 88,611.5288,999.19---88,750.64(70.18) 3.000 0.685AAA256350005LC P j t F d T ll 231394GH22ACMOFd lH L M t C07/15/201807/20/2015145 354 95150 669 50150 558 6651 174 5000 936AAA256350005 LC-Project Fund-Toll 231394GH22Agency CMOFederal Home Loan Mortgage Corp07/15/201807/20/2015145,354.95150,669.50---150,558.6651.174.5000.936AAA256350005 LC-Project Fund-Toll 23137ANLP8 Agency CMO Federal Home Loan Mortgage Corp11/25/2016--- 174,481.75 175,909.15---175,563.5320.56 1.655 0.804AAA256350005 LC-Project Fund-Toll 238377LN38 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T11/16/2038 06/16/2015 238,441.85 246,489.25---245,077.68(1,443.44) 3.500 1.974AAA256350005 LC-Project Fund-Toll 23137AH6B9 Agency CMO Federal Home Loan Mortgage Corp10/25/2020 08/28/2015 175,074.70 178,904.46---179,043.65219.70 2.257 1.059AAA256350005 LC-Project Fund-Toll 236225FGM5 Agency MBS Ginnie Mae II08/20/2041 08/06/2015 121,068.63 125,306.03---125,999.75710.77 1.625 0.856AAA256350005 LC-Project Fund-Toll 238378NNA7 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T05/16/2038 06/26/2015 589,694.52 593,725.63---595,874.522,443.49 2.250 1.673AAA256350005 LC-Project Fund-Toll 23136AEYG6 Agency MBS Federal National Mortgage Association06/25/2018 07/02/2015 226,539.53 229,371.28---230,302.351,124.17 1.825 1.124AAA256350005 LC-Project Fund-Toll 236225FLU1 Agency MBS Ginnie Mae II02/20/2042 08/06/2015 253,599.85 262,238.09---262,587.43395.04 1.750 0.853AAA256350005 LC-Project Fund-Toll 236225FLA5 Agency MBS Ginnie Mae II01/20/2042 08/06/2015 149,889.20 155,182.16---155,504.05349.98 1.750 0.672AAA256350005 LC-Project Fund-Toll 23138EKUP8 Agency MBS Federal National Mortgage Association03/01/2025 09/21/2015 289,695.84 305,289.63---301,952.88(3,735.28) 5.000 2.006AAA256350005 LC-Project Fund-Toll 23138L1TX7 Agency MBS Federal National Mortgage Association11/01/2017 06/18/2015 311,614.00 313,026.01---315,624.472,788.71 1.660 ---AAA256350005 LC-Project Fund-Toll 236225EUY6 Agency MBS Ginnie Mae II09/20/2039 09/17/2015 136,688.21 140,575.29---145,061.724,492.23 2.500 -1.063AAA256350005 LC-Project Fund-Toll 217305EFE0 Asset BackedCitibank Credit Card Issuance Trust09/07/2018 06/23/2015 330,000.00 331,727.34---331,610.40260.47 1.320 0.796AAA256350005 LC-Project Fund-Toll 258768WAD1 Asset BackedMercedes-Benz Auto Receivables Trust 2013-1 11/15/2019 06/16/2015 350,000.00 351,066.41 --- 350,791.00 (40.35) 1.130 0.949 AAA256350005 LC-Project Fund-Toll 2 161571FH2 Asset BackedChase Issuance Trust05/15/2019--- 370,000.00 369,852.54---369,630.00(246.27) 0.477 0.525AAA256350005 LC-Project Fund-Toll 202582JGY0 Asset BackedAmerican Express Credit Account Master Trust05/15/2020 06/25/2015 535,000.00 534,917.97---533,913.95(1,015.99) 0.497 0.582AAA256350005 LC-Project Fund-Toll 247787RAD2 Asset BackedJohn Deere Owner Trust 2012-B01/15/2019--- 667,933.08 668,037.45---667,826.21(181.94) 0.690 0.727AAA256350005 LC-Project Fund-Toll 247787UAC7 Asset BackedJohn Deere Owner Trust 201502/15/2018 06/12/2015 425,000.00 425,066.41---424,532.50(521.18) 0.477 0.621AAA256350005 LC-Project Fund-Toll 290290KAD7 Asset BackedUSAA Auto Owner Trust 2014-105/15/2019 06/12/2015 445,000.00 443,991.80---445,747.601,582.64 0.940 0.819AAA256350005 LC-Project Fund-Toll 2161571GR9 Asset BackedChase Issuance Trust11/15/2018 08/04/2015 340,000.00 340,000.00---339,796.00(204.00) 0.457 0.497AAA256350005 LC-Project Fund-Toll 258772PAC2 Asset BackedMERCEDES-BENZ AUTO RECEIVABLESTR 2015-106/15/2018 08/04/2015 390,000.00 390,045.70---389,606.10(438.09) 0.477 0.567AAA256350005 LC-Project Fund-Toll 260689LAC9 Asset BackedMMAF EQUIP FIN LLC 2013-A12/11/2017 08/05/2015 165,999.43 166,077.24---166,059.19(11.88) 1.030 0.968AAA256350005 LC-Project Fund-Toll 255315GAC2 Asset BackedMMAF EQUIP FIN LLC 2015-A10/16/2019 07/30/2015 247,000.00 246,286.02---246,812.28446.53 1.390 1.456AAA256350005 LC-Project Fund-Toll 205522RCR7 Asset BackedBA Credit Card Trust09/16/2019 06/30/2015 125,000.00 124,912.11---124,927.502.07 0.477 0.501AAA256350005 LC-Project Fund-Toll 202582JGS3 Asset BackedAmerican Express Credit Account Master Trust01/15/2020 07/13/2015 500,000.00 500,859.38---501,890.001,123.23 1.260 1.039AAA256350005 LC-Project Fund-Toll 262888YAA0 CMONCUA Guaranteed Notes Trust 2011-R101/08/2020 07/14/2015 234,204.11 235,338.54 12/25/2019235,321.2735.88 0.653 0.436AAA256350005 LC-Project Fund-Toll 236962G7H1 CorporateGeneral Electric Capital Corporation05/15/2017 09/23/2015 115,000.00 115,155.25 04/13/2017115,116.15(37.45) 0.601 0.548AA256350005 LC-Project Fund-Toll 200138CAA6 CorporateAIG GLOBAL FDG SR SECD MEDIUMTERM NTS BOOK ENTRY 144A12/15/2017 06/22/2015 300,000.00 300,696.00---300,657.0034.92 1.650 1.548A256350005 LC-Project Fund-Toll 2553794AA6 CorporateMUFG Americas Holdings Corporation02/09/2018 06/11/2015 300,000.00 298,716.00 01/09/2018299,235.00378.48 1.625 1.736A256350005 LC-Project Fund-Toll 289153UAE1 CorporateTotal Capital Canada Ltd.01/15/2018 06/10/2015 300,000.00 300,000.00---300,534.00534.00 1.450 1.371AA256350005 LC-Project Fund-Toll 2718172AA7 CorporatePhilip Morris International Inc.05/16/2018 06/23/2015 250,000.00 277,717.50---276,110.00867.17 5.650 1.576A256350005 LC-Project Fund-Toll 261746BDC7 CorporateMorgan Stanley10/18/2016 09/25/2015 250,000.00 249,670.00---249,507.50(163.36) 0.737 0.938A256350005 LC-Project Fund-Toll 2822582AZ5 CorporateShell International Finance B.V.11/15/2016 06/12/2015 300,000.00 300,429.00---300,669.00327.19 0.900 0.701AA256350005 LC-Project Fund-Toll 2166754AK7 CorporateCHEVRON PHILLIPS CHEM CO LLC / CHEVRON PHILLIPS CHEM CO05/01/2018 06/11/2015 300,000.00 299,631.00---299,322.00(346.23) 1.700 1.790A256350005 LC-Project Fund-Toll 222546QAM9 CorporateCredit Suisse AG05/26/2017 09/22/2015 250,000.00 249,357.50---249,152.50(211.33) 0.822 1.040A256350005 LC-Project Fund-Toll 226442CAD6 CorporateDuke Energy Carolinas, LLC04/15/2018 06/11/2015 116,000.00 127,422.52---126,318.2050.93 5.100 1.519AA256350005 LC-Project Fund-Toll 2084664CD1 CorporateBerkshire Hathaway Finance Corporation01/12/2018 08/11/2015 300,000.00 300,162.00---298,782.00(1,371.18) 0.586 0.775AA256350005 LC-Project Fund-Toll 274153WCE7 CorporatePricoa Global Funding I08/18/2017 06/10/2015 300,000.00 299,511.00---299,151.00(426.84) 1.350 1.503AA256350005 LC-Project Fund-Toll 292976WBH8 CorporateWells Fargo & Company02/01/2018 06/22/2015 200,000.00 221,176.00---218,850.00(200.71) 5.750 1.621AA256350005 LC-Project Fund-Toll 2928668AF9 CorporateVolkswagen Group of America Finance, LLC11/20/2017 06/11/2015 300,000.00 300,525.00---287,835.00(12,628.54) 1.600 3.586A256350005 LC-Project Fund-Toll 206050TLY6 CorporateBank of America, National Association03/26/2018 06/10/2015 300,000.00 298,968.00---299,763.00685.72 1.650 1.683A256350005 LC-Project Fund-Toll 2233851BF0 CorporateDaimler Finance North America LLC08/01/2017 06/12/2015 300,000.00 299,250.00---296,160.00(3,191.76) 1.375 2.089A256350005 LC-Project Fund-Toll 241283LAB1 CorporateHarley-Davidson Financial Services, Inc.03/15/2017 06/22/2015 250,000.00 256,430.00---254,882.50(563.89) 2.700 1.343APage 8 of 3360 Source Account Account IdentifierSecurity Type Category IssuerFinal Maturity Trade DateCurrent Face Value Original CostNext Call Date Base Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Account for quarter ended September 30, 2015256350005 LC-Project Fund-Toll 2073928S46 CorporateJPMorgan Chase & Co.11/21/2016 09/23/2015 160,000.00 159,833.60---159,676.80(159.16) 0.723 0.914A256350005 LC-Project Fund-Toll 291159HHD5 CorporateU.S. Bancorp05/15/2017 06/11/2015 300,000.00 303,276.00 04/15/2017302,685.00(74.07) 1.650 1.063AA256350005 LC-Project Fund-Toll 246623EKD0 CorporateJPMorgan Chase & Co.03/01/2018 06/10/2015 300,000.00 299,310.00 02/01/2018299,319.00(66.61) 1.700 1.796A256350005 LC-Project Fund-Toll 294974BEZ9 CorporateWells Fargo & Company12/15/2016 06/12/2015 300,000.00 307,113.00---305,979.00237.15 2.625 0.961AA256350005 LC-Project Fund-Toll 289837LAA3 CorporateThe Trustees of Princeton University03/01/2019--- 620,000.00 690,247.32---686,879.401,450.50 4.950 1.690AAA256350005 LC-Project Fund-Toll 2172967GQ8 CorporateCitigroup Inc.04/01/2016 09/25/2015 80,000.0080,093.60---80,093.600.51 1.074 0.858A256350005 LC-Project Fund-Toll 240428HPQ9 CorporateHSBC USA Inc.03/05/2018 08/17/2015 145,000.00 144,315.60---144,602.70256.84 1.700 1.816AA256350005 LC-Project Fund-Toll 238141GRC0 CorporateThe Goldman Sachs Group, Inc.01/22/2018 06/10/2015 80,000.0081,027.20---81,044.80131.39 2.375 1.795A256350005 LC-Project Fund-Toll 220030NAP6 CorporateComcast Corporation01/15/2017 06/10/2015 300,000.00 325,509.00---320,505.00(276.93) 6.500 1.152A256350005 LC-Project Fund-Toll 207330NAG0 CorporateBranch Banking and Trust Company12/01/2016 06/12/2015 300,000.00 300,138.00 11/01/2016300,240.00130.69 1.050 0.976A256350005 LC-Project Fund-Toll 269349LAP3 CorporatePNC Realty Investors, Inc.11/01/2016 06/12/2015 300,000.00 300,210.00 10/02/2016300,462.00297.95 1.150 0.996A256350005 LC-Project Fund-Toll 255279HAH3 CorporateManufacturers and Traders Trust Company07/25/2017 09/18/2015 250,000.00 248,907.50---249,762.50841.97 0.595 0.656A256350005 LC-Project Fund-Toll 259217GBE8 CorporateMetropolitan Life Global Funding I04/10/2017 08/10/2015 300,000.00 300,615.00---299,952.00(613.27) 0.663 0.684AA256350005 LC-Project Fund-Toll 238141GEG5 CorporateThe Goldman Sachs Group, Inc.03/22/2016 09/17/2015 50,000.0049,992.00---49,988.50(3.90) 0.769 0.826A256350005 LC-Project Fund-Toll 2002799AM6 CorporateAbbey National Treasury Services PLC03/13/2017 06/11/2015 300,000.00 300,810.00---299,988.00(689.04) 1.375 1.378A256350005 LC-Project Fund-Toll 290261XHH8 CorporateUBS AG03/26/2018 06/22/2015 250,000.00 249,357.50---249,872.50451.83 1.800 1.821A256350005 LC-Project Fund-Toll 2037833AM2 CorporateApple Inc.05/05/2017 06/10/2015 300,000.00 300,957.00---301,155.00345.50 1.050 0.807AA256350005 LC-Project Fund-Toll 2532457BK3 CorporateEli Lilly and Company03/01/2018 06/10/2015 300,000.00 298,908.00---299,823.00797.34 1.250 1.275AA256350005 LC-Project Fund-Toll 2209111ET6 CorporateConsolidated Edison Company of New York, Inc.04/01/2018 06/22/2015 220,000.00 245,828.00---242,968.00(422.25) 5.850 1.579A256350005 LC-Project Fund-Toll 230231GAL6 CorporateExxon Mobil Corporation03/06/2018 06/11/2015 300,000.00 299,583.00---300,708.001,079.67 1.305 1.206AAA256350005 LC-Project Fund-Toll 2063679ZT4 CorporateBank of Montreal01/30/2017 06/12/2015 300,000.00 304,620.00---304,122.00325.43 1.950 0.911AAA256350005 LC-Project Fund-Toll 221686CAD2 CorporateRabobank Nederland01/19/2017 06/10/2015 300,000.00 310,389.00---308,322.00(155.60) 3.375 1.221AA256350005 LC-Project Fund-Toll 238141GVK7 CorporateThe Goldman Sachs Group, Inc.04/30/2018 08/12/2015 190,000.00 191,951.30---191,626.40(235.94) 1.497 1.183A256350005 LC-Project Fund-Toll 259217GAY5 CorporateMetropolitan Life Global Funding I01/10/2018 06/12/2015 300,000.00 299,646.00---299,517.00(169.19) 1.500 1.572AA256350005 LC-Project Fund-Toll 2064159CQ7 CorporateThe Bank of Nova Scotia07/15/2016 06/12/2015 300,000.00 302,034.00---301,587.0098.26 1.375 0.703AA256350005 LC-Project Fund-Toll 2842434CN0 CorporateSouthern California Gas Company06/15/2018 06/15/2015 250,000.00 249,992.50---249,677.50(315.65) 1.550 1.599AA256350005 LC-Project Fund-Toll 20258M0DN6 CorporateAmerican Express Credit Corporation06/05/2017 09/22/2015 200,000.00 198,994.00---198,890.00(113.75) 0.602 0.944A256350005 LC-Project Fund-Toll 291324PCF7 CorporateUnitedHealth Group Incorporated12/15/2017 06/11/2015 300,000.00 300,543.00---299,691.00(789.29) 1.400 1.447A256350005 LC-Project Fund-Toll 29AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015 09/29/20150.00 191,858.42---191,858.420.00 0.000 0.000NA256350005 LC-Project Fund-Toll 265819WAC7 MuniNorth Carolina Eastern Municipal Power Agency07/01/2018--- 160,000.00 160,404.60---161,900.801,504.29 2.003 1.560A256350005 LC-Project Fund-Toll 2180848HP1 MuniClark, County of07/01/2017 07/06/2015 120,000.00 126,764.40---126,045.6052.83 4.300 1.380AA256350005 LC-Project Fund-Toll 24197915E4 MuniHawaii, State of08/01/2016 06/29/2015 300,000.00 300,321.00---300,435.00184.17 0.731 0.557AA256350005 LC-Project Fund-Toll 249130TRY4 MuniKentucky Housing Corporation01/01/2017 06/17/2015 275,000.00 274,634.25---274,612.25(87.74) 0.937 1.050AAA256350005LC P j t F d T ll 213063A5D2MiC lif i St t f04/01/201606/29/2015315 000 00327 521 25323 659 35146 925 9500 469AA256350005 LC-Project Fund-Toll 213063A5D2MuniCalifornia, State of04/01/201606/29/2015315,000.00327,521.25---323,659.35146.925.9500.469AA256350005 LC-Project Fund-Toll 2912828TG5 US GovTreasury, United States Department of07/31/2017 08/25/2015 675,000.00 672,969.73---673,751.25679.02 0.500 0.602AAA256350005 LC-Project Fund-Toll 2912828UZ1 US GovTreasury, United States Department of04/30/2018--- 1,950,000.00 1,925,332.03--- 1,939,996.5012,204.35 0.625 0.826AAA256350005 LC-Project Fund-Toll 2912828KQ2 US GovTreasury, United States Department of05/15/2019 06/17/2015 600,000.00 638,062.50---642,594.007,237.85 3.125 1.121AAA256350005 LC-Project Fund-Toll 2912828UA6 US GovTreasury, United States Department of11/30/2017--- 865,000.00 860,628.32---863,425.702,387.32 0.625 0.710AAA256350005 LC-Project Fund-Toll 2912828J84 US GovTreasury, United States Department of03/31/2020--- 1,800,000.00 1,778,156.26--- 1,805,436.0026,176.26 1.375 1.306AAA256350005 LC-Project Fund-Toll 2912828K41 US GovTreasury, United States Department of04/30/2017 07/31/2015 600,000.00 600,015.87---599,580.00(434.40) 0.089 0.134AAA256350005 LC-Project Fund-Toll 2912828UB4 US GovTreasury, United States Department of11/30/2019 08/25/2015 350,000.00 345,037.11---346,510.501,361.39 1.000 1.246AAA256350005 LC-Project Fund-Toll 2912828VK3 US GovTreasury, United States Department of06/30/2018--- 1,305,000.00 1,319,064.85--- 1,322,604.454,407.72 1.375 0.877AAA256350005 LC-Project Fund-Toll 297689RAE4 VRDNWisconsin Housing and Economic Development Authority10/01/2040 08/31/2015 350,000.00 350,000.00 10/01/2015350,000.000.00 0.160 0.160AAA32,859,072.27256350022 LC-Sr Lien Ob Fund-1 Interest3130A3BD5 AgencyFederal Home Loan Banks Office of Finance04/20/2018 08/11/2015 200,000.00 200,446.00 10/20/2015200,120.00(2.81) 1.500 0.417AAA256350022 LC-Sr Lien Ob Fund-1 Interest31393EXC8 Agency CMO Federal National Mortgage Association09/25/2018 07/24/2013 33,506.8535,423.02---34,750.9673.39 4.500 0.919AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137B03W2 Agency CMO Federal Home Loan Mortgage Corp08/25/2017 06/17/2015 550,000.00 553,695.31---554,174.501,139.06 1.426 0.842AAA256350022 LC-Sr Lien Ob Fund-1 Interest3136A4M89 Agency CMO Federal National Mortgage Association01/25/2019 07/05/2013 176,046.17 177,167.09---179,389.282,757.31 1.934 1.100AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137ASNH3 Agency CMO Federal Home Loan Mortgage Corp09/25/2021 08/15/2013 389,845.35 379,611.91---390,262.487,955.02 1.459 1.398AAA256350022 LC-Sr Lien Ob Fund-1 Interest3136A8G38 Agency CMO Federal National Mortgage Association08/25/2017 07/08/2013 715,363.11 704,800.33---718,875.559,294.25 1.246 0.901AAA256350022 LC-Sr Lien Ob Fund-1 Interest31393V2T7 Agency CMO Federal Home Loan Mortgage Corp06/15/2018 07/08/2013 172,341.64 182,278.22---178,159.90(277.50) 4.500 1.162AAA256350022 LC-Sr Lien Ob Fund-1 Interest3137ANLP8 Agency CMO Federal Home Loan Mortgage Corp11/25/2016 07/09/2013 927,245.85 936,445.86---932,994.783,886.05 1.655 0.804AAA256350022 LC-Sr Lien Ob Fund-1 Interest31402RBG3 Agency MBS Federal National Mortgage Association09/01/2019--- 67,308.7872,198.62---69,863.15(360.36) 6.000 1.701AAA256350022 LC-Sr Lien Ob Fund-1 Interest31385JLF3 Agency MBS Federal National Mortgage Association08/01/2017 09/18/2013 131,201.50 140,057.60---135,115.24(691.63) 6.000 1.578AAA256350022 LC-Sr Lien Ob Fund-1 Interest36162WAC1 Asset BackedGE Equipment Transportation LLC, Series 2013-111/25/2016 07/09/2013 163,500.70 162,964.22---163,468.005.32 0.690 0.847AAA256350022 LC-Sr Lien Ob Fund-1 Interest38144LAB6 CorporateThe Goldman Sachs Group, Inc.09/01/2017 07/03/2013 300,000.00 322,515.00---326,022.0015,109.75 6.250 1.640A256350022 LC-Sr Lien Ob Fund-1 Interest38143USC6 CorporateThe Goldman Sachs Group, Inc.02/07/2016 07/03/2013 600,000.00 627,936.00---605,748.001,878.38 3.625 0.896A256350022 LC-Sr Lien Ob Fund-1 Interest05565QCC0 CorporateBP Capital Markets P.L.C.11/06/2017 07/03/2013 300,000.00 292,194.00---299,550.003,418.58 1.375 1.448A256350022 LC-Sr Lien Ob Fund-1 Interest166764AE0 CorporateChevron Corporation06/24/2018 06/17/2015 300,000.00 301,848.00 05/24/2018302,328.00651.20 1.718 1.418AA256350022 LC-Sr Lien Ob Fund-1 Interest891145TN4 CorporateThe Toronto-Dominion Bank03/13/2017 05/21/2015 1,000,000.00 1,010,240.00--- 1,006,670.00(1,623.45) 1.500 1.036AAA256350022 LC-Sr Lien Ob Fund-1 Interest48121CYK6 CorporateJPMorgan Chase Bank, National Association10/01/2017 07/03/2013 300,000.00 341,424.00---324,183.004,029.99 6.000 1.880A256350022 LC-Sr Lien Ob Fund-1 Interest89236TAY1 CorporateToyota Motor Credit Corporation10/24/2018 06/17/2015 500,000.00 505,870.00---505,240.00(159.77) 2.000 1.648AA256350022 LC-Sr Lien Ob Fund-1 Interest02580ECC5 CorporateAmerican Express Bank, FSB.09/13/2017 07/08/2013 250,000.00 287,890.00---271,012.502,869.60 6.000 1.610A256350022 LC-Sr Lien Ob Fund-1 Interest233851AT1 CorporateDaimler Finance North America LLC01/11/2016 07/08/2013 500,000.00 497,995.00---500,570.00795.44 1.250 0.840A256350022 LC-Sr Lien Ob Fund-1 Interest30231GAL6 CorporateExxon Mobil Corporation03/06/2018 06/10/2015 420,000.00 419,525.40---420,991.201,413.41 1.305 1.206AAA256350022 LC-Sr Lien Ob Fund-1 Interest94974BGF1 CorporateWells Fargo & Company01/30/2020 06/03/2015 1,000,000.00 991,540.00---997,550.005,450.78 2.150 2.209AA256350022 LC-Sr Lien Ob Fund-1 Interest46625HJL5 CorporateJPMorgan Chase & Co.05/15/2018 06/03/2015 500,000.00 497,550.00---496,905.00(901.99) 1.625 1.867A256350022 LC-Sr Lien Ob Fund-1 Interest63307EAB3 CorporateNational Bank of Canada10/19/2016 05/21/2015 900,000.00 918,414.00---912,393.00(1,477.17) 2.200 0.883AAA256350022 LC-Sr Lien Ob Fund-1 Interest78011DAC8 CorporateRoyal Bank of Canada09/19/2017 05/21/2015 1,000,000.00 1,001,090.00--- 1,000,090.00(842.96) 1.200 1.195AAA256350022 LC-Sr Lien Ob Fund-1 Interest44890NX70 CPHyundai Capital America10/07/2015 08/31/2015 400,000.00 399,810.89---399,988.0018.67 0.000 0.180AA256350022 LC-Sr Lien Ob Fund-1 Interest27743KY20 CPEastman Chemical Company11/02/2015 09/28/2015 500,000.00 499,787.50---499,905.00105.00 0.000 0.214AA256350022 LC-Sr Lien Ob Fund-1 Interest92939BXU7 CPWells Fargo Commercial Mortgage Trust 2014-LC1610/28/2015 09/28/2015 700,000.00 699,746.25---699,909.00145.25 0.000 0.173AA256350022 LC-Sr Lien Ob Fund-1 Interest9AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.00 113,895.31---113,895.310.00 0.000 0.000NA256350022 LC-Sr Lien Ob Fund-1 Interest407288YD5 MuniHamilton, County of12/01/2015 07/18/2013 630,000.00 630,000.00---630,315.00315.00 0.803 0.506AA256350022 LC-Sr Lien Ob Fund-1 Interest235219JS2 MuniDallas, City of02/15/2017 07/10/2013 650,000.00 650,000.00---658,248.508,248.50 1.589 0.660AA256350022 LC-Sr Lien Ob Fund-1 Interest912828RX0 US GovTreasury, United States Department of12/31/2016 09/13/2013 950,000.00 945,212.89---954,759.506,593.05 0.875 0.472AAAPage 9 of 3361 Source Account Account IdentifierSecurity Type Category IssuerFinal Maturity Trade DateCurrent Face Value Original CostNext Call Date Base Market ValueBase Net Total Unrealized Gain/Loss Coupon YieldSummarized Credit RatingSTAMP Portfolio by Account for quarter ended September 30, 2015256350022 LC-Sr Lien Ob Fund-1 Interest912828J84 US GovTreasury, United States Department of03/31/2020--- 950,000.00 936,470.70---952,869.0015,583.56 1.375 1.306AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828UA6 US GovTreasury, United States Department of11/30/2017 07/05/2013 1,250,000.00 1,214,648.44--- 1,247,725.0015,371.78 0.625 0.710AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828K41 US GovTreasury, United States Department of04/30/2017 07/30/2015 200,000.00 200,001.77---199,860.00(141.60) 0.089 0.134AAA256350022 LC-Sr Lien Ob Fund-1 Interest912828UZ1 US GovTreasury, United States Department of04/30/2018 07/14/2015 700,000.00 693,656.25---696,409.002,276.31 0.625 0.826AAA18,580,309.85256350023 LC-Sr Lien Reserve Fund-13135G0D75 AgencyFederal National Mortgage Association06/22/2020 05/06/2015 600,000.00 593,490.00---600,000.006,023.25 1.500 1.500AAA256350023 LC-Sr Lien Reserve Fund-13137EADR7 AgencyFederal Home Loan Mortgage Corp05/01/2020 05/15/2015 475,000.00 471,527.75---474,567.752,789.47 1.375 1.395AAA256350023 LC-Sr Lien Reserve Fund-13137EACA5 AgencyFederal Home Loan Mortgage Corp03/27/2019 07/05/2013 800,000.00 875,900.00---870,816.0023,488.12 3.750 1.156AAA256350023 LC-Sr Lien Reserve Fund-13137EADB2 AgencyFederal Home Loan Mortgage Corp01/13/2022 07/05/2013 550,000.00 529,303.50---566,450.5032,196.77 2.375 1.868AAA256350023 LC-Sr Lien Reserve Fund-13130A6G92 AgencyFederal Home Loan Banks Office of Finance06/21/2016 09/29/2015 100,000.00 100,004.80---100,000.00(4.78) 0.245 0.249AAA256350023 LC-Sr Lien Reserve Fund-13137AEV77 Agency CMO Federal Home Loan Mortgage Corp05/25/2018 07/03/2013 251,000.00 258,314.30---259,667.034,896.03 2.699 1.252AAA256350023 LC-Sr Lien Reserve Fund-13137AJMF8 Agency CMO Federal Home Loan Mortgage Corp10/25/2021 08/05/2015 30,000.0031,038.28---31,556.40542.46 2.968 1.999AAA256350023 LC-Sr Lien Reserve Fund-138377JZ89 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T10/20/2039 07/05/2013 154,359.24 159,080.46---160,885.542,368.25 3.500 1.997AAA256350023 LC-Sr Lien Reserve Fund-131392JJ83 Agency CMO Federal National Mortgage Association03/25/2018 07/08/2013 25,598.0227,005.91---26,400.0028.39 5.000 1.449AAA256350023 LC-Sr Lien Reserve Fund-138376GB33 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T10/16/2044 01/23/2015 350,000.00 359,262.85---359,163.002,064.93 3.500 1.226AAA256350023 LC-Sr Lien Reserve Fund-13137AUPE3 Agency CMO Federal Home Loan Mortgage Corp06/25/2022 07/03/2013 235,000.00 220,358.40---238,146.6514,576.94 2.396 2.162AAA256350023 LC-Sr Lien Reserve Fund-138378CRT6 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T10/20/2040 05/22/2014 121,109.81 116,946.66---120,555.133,366.86 2.000 2.099AAA256350023 LC-Sr Lien Reserve Fund-13137A7E22 Agency CMO Federal Home Loan Mortgage Corp04/15/2028 07/08/2013 209,799.41 217,207.95---217,039.592,618.84 3.500 0.871AAA256350023 LC-Sr Lien Reserve Fund-13137B03W2 Agency CMO Federal Home Loan Mortgage Corp08/25/2017 07/31/2013 45,000.0044,964.84---45,341.55381.67 1.426 0.842AAA256350023 LC-Sr Lien Reserve Fund-138376T5Z1 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T01/16/2039 01/26/2015 163,342.32 170,651.89---169,675.10(570.62) 3.000 1.788AAA256350023 LC-Sr Lien Reserve Fund-138377RSZ9 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T06/16/2039 01/21/2015 70,074.5674,265.65---73,643.46(688.61) 4.500 2.131AAA256350023 LC-Sr Lien Reserve Fund-138378BX20 Agency CMO Government National Mortgage Association06/16/2051 03/17/2015 70,872.5569,296.14---69,616.68210.06 1.240 1.964AAA256350023 LC-Sr Lien Reserve Fund-138378B7E3 Agency CMO Government National Mortgage Association05/16/2046 05/22/2015 231,020.90 222,050.79---227,266.814,840.38 1.744 2.231AAA256350023 LC-Sr Lien Reserve Fund-138377RVK8 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T04/20/2039--- 189,307.98 194,647.05---195,858.041,934.02 3.000 1.725AAA256350023 LC-Sr Lien Reserve Fund-13136A7MJ8 Agency CMO Federal National Mortgage Association12/25/2019 08/20/2013 137,337.87135,299.25---138,634.332,526.25 1.520 0.983AAA256350023 LC-Sr Lien Reserve Fund-13137ASNH3 Agency CMO Federal Home Loan Mortgage Corp09/25/2021 07/03/2013 389,845.35 380,967.23---390,262.486,858.13 1.459 1.398AAA256350023 LC-Sr Lien Reserve Fund-13136A72D3 Agency CMO Federal National Mortgage Association04/25/2022 07/03/2013 395,000.00375,250.00---401,754.5022,112.69 2.482 2.180AAA256350023 LC-Sr Lien Reserve Fund-138379C2M7 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T09/20/2041 07/11/2014 49,774.8552,048.76---51,820.59(300.86) 1.685 1.001AAA256350023 LC-Sr Lien Reserve Fund-138378B7F0 Agency CMO Government National Mortgage Association12/16/2042--- 450,000.00 427,324.22---430,240.501,887.50 2.273 3.127AAA256350023 LC-Sr Lien Reserve Fund-13137AQT24 Agency CMO Federal Home Loan Mortgage Corp01/25/2019 10/21/2013 170,000.00 171,195.31---173,665.202,994.90 2.130 1.408AAA256350023 LC-Sr Lien Reserve Fund-138376WA62 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T10/20/2039 01/21/2015 156,062.03 163,847.80---165,221.311,340.08 4.000 1.480AAA256350023 LC-Sr Lien Reserve Fund-138378TAF7 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T07/20/2041 07/05/2013 237,325.48 237,361.26---244,141.466,913.92 2.500 1.718AAA256350023 LC-Sr Lien Reserve Fund-138377DPX8 Agency CMO The Government National Mortgage Association Guaranteed REMIC Pass-T11/20/2036 12/31/2013 30,520.6231,995.47---30,776.39(387.02) 2.500 1.034AAA256350023LC S Li R F d 131395EZP5ACMOFd lH L M t C08/15/201907/09/201397 310 71102 951 68100 813 89(399 15)4 5001 709AAA256350023 LC-Sr Lien Reserve Fund-131395EZP5Agency CMOFederal Home Loan Mortgage Corp08/15/201907/09/201397,310.71102,951.68---100,813.89(399.15)4.5001.709AAA256350023 LC-Sr Lien Reserve Fund-131394DVM9 Agency CMO Federal National Mortgage Association02/25/2034 06/19/2014 168,978.45178,668.31---177,733.221,789.48 5.000 0.924AAA256350023 LC-Sr Lien Reserve Fund-138378KXW4 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T02/16/2037 12/11/2014 197,679.55 196,722.04---196,576.49(346.57) 1.705 1.990AAA256350023 LC-Sr Lien Reserve Fund-131413XVG5 Agency MBS Federal National Mortgage Association06/01/2019 08/04/2014 200,000.00218,500.00---214,210.0014.37 4.506 2.505AAA256350023 LC-Sr Lien Reserve Fund-138379KDN5 Agency MBS Government National Mortgage Association09/16/2055 08/05/2015 196,147.74 191,136.77---194,164.692,962.95 2.096 2.580AAA256350023 LC-Sr Lien Reserve Fund-13136A4M48 Agency MBS Federal National Mortgage Association01/25/2022 07/05/2013 366,193.12367,223.04---374,773.028,047.32 2.098 1.345AAA256350023 LC-Sr Lien Reserve Fund-131381PEB0 Agency MBS Federal National Mortgage Association11/01/2020 09/26/2014 265,000.00279,036.72---283,650.706,945.37 3.370 1.886AAA256350023 LC-Sr Lien Reserve Fund-13137A7JU5 Agency MBS Federal Home Loan Mortgage Corp11/25/2017 07/03/2013 325,000.00 351,203.13---341,828.504,603.55 3.882 1.148AAA256350023 LC-Sr Lien Reserve Fund-138378KRS0 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T07/16/2043 05/08/2015 450,000.00 434,460.94---440,181.004,895.38 2.389 2.777AAA256350023 LC-Sr Lien Reserve Fund-138378KWU9 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T11/16/2041 05/22/2015 70,897.8269,119.83---69,761.33505.68 1.400 2.093AAA256350023 LC-Sr Lien Reserve Fund-13138EJ6V5 Agency MBS Federal National Mortgage Association09/01/2026 11/18/2013 123,768.63131,407.48---131,771.511,020.45 4.000 1.816AAA256350023 LC-Sr Lien Reserve Fund-138378XP62 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T05/16/2055 05/14/2015 467,843.88 473,618.83---479,137.635,589.01 2.500 2.010AAA256350023 LC-Sr Lien Reserve Fund-131404WTT3 Agency MBS Federal National Mortgage Association05/01/2019 12/31/2013 77,706.4086,622.62---80,618.84(2,956.29) 4.500 1.720AAA256350023 LC-Sr Lien Reserve Fund-131417YKF3 Agency MBS Federal National Mortgage Association01/01/2030 07/10/2013 147,363.26155,468.24---160,630.375,024.72 4.500 1.932AAA256350023 LC-Sr Lien Reserve Fund-131385XBG1 Agency MBS Federal National Mortgage Association03/01/2018 09/13/2013 15,874.0116,905.82---16,344.83(52.46) 6.000 1.602AAA256350023 LC-Sr Lien Reserve Fund-131416YXJ2 Agency MBS Federal National Mortgage Association08/01/2026 07/03/2013 62,604.8965,549.27---66,396.861,265.42 3.500 1.520AAA256350023 LC-Sr Lien Reserve Fund-138378KSL4 Agency MBS The Government National Mortgage Association Guaranteed REMIC Pass-T12/16/2046--- 425,000.00 415,829.11---416,376.75231.35 2.785 3.052AAA256350023 LC-Sr Lien Reserve Fund-13137B6ZL8 Agency MBS Federal Home Loan Mortgage Corp12/25/2019 01/07/2014 48,019.5948,979.43---48,856.09199.68 2.075 1.227AAA256350023 LC-Sr Lien Reserve Fund-131418AFW3 Agency MBS Federal National Mortgage Association06/01/2022 07/10/2013 223,268.78230,594.78---233,588.264,647.37 3.000 1.049AAA256350023 LC-Sr Lien Reserve Fund-138378B6A2 Agency MBS Government National Mortgage Association11/16/2052 01/22/2015 137,221.33 132,895.64---134,722.531,450.90 1.826 2.373AAA256350023 LC-Sr Lien Reserve Fund-13128MMAK9 Agency MBS Federal Home Loan Mortgage Corp09/01/2019 07/08/2013 142,872.55 151,891.38---150,881.991,742.06 5.000 1.159AAA256350023 LC-Sr Lien Reserve Fund-13136AEYG6 Agency MBS Federal National Mortgage Association06/25/2018 11/20/2013 145,327.25146,473.98---147,741.131,746.95 1.825 1.124AAA256350023 LC-Sr Lien Reserve Fund-19AMMF05B2 MM FundU.S. Bank Money Market Account Fund09/30/2015---0.0097,855.40---97,855.400.00 0.000 0.000NA256350023 LC-Sr Lien Reserve Fund-1912828B58 US GovTreasury, United States Department of01/31/2021 05/15/2015 500,000.00 512,578.13---515,975.004,179.35 2.125 1.499AAA256350023 LC-Sr Lien Reserve Fund-1912828UF5 US GovTreasury, United States Department of12/31/2019--- 500,000.00 493,388.87---497,120.003,108.52 1.125 1.265AAA256350023 LC-Sr Lien Reserve Fund-1912828VB3 US GovTreasury, United States Department of05/15/2023 07/05/2013 3,500,000.00 3,253,085.94--- 3,470,180.00166,442.47 1.750 1.870AAA256350023 LC-Sr Lien Reserve Fund-1912828KQ2 US GovTreasury, United States Department of05/15/2019 07/05/2013 500,000.00 539,902.34---535,495.0010,338.92 3.125 1.121AAA256350023 LC-Sr Lien Reserve Fund-1912833KR0 US GovTreasury, United States Department of05/15/2018 07/05/2013 380,000.00 353,517.80---371,393.005,932.52 0.000 0.875AAA256350023 LC-Sr Lien Reserve Fund-1912828VK3 US GovTreasury, United States Department of06/30/2018 07/05/2013 1,575,000.00 1,567,678.71--- 1,596,246.7525,351.47 1.375 0.877AAA256350023 LC-Sr Lien Reserve Fund-1912828TJ9 US GovTreasury, United States Department of08/15/2022 07/05/2013 495,000.00 461,355.47---490,812.3021,881.70 1.625 1.756AAA18,869,003.09Page 10 of 3362 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income Balance205091001 LC-2013 A Capitalized Interest 9AMMF05B2 U.S. Bank Money Market Accoun318,613.35 1,593,632.32 (1,253,844.06) - - - - - 658,401.61 - 205091001 LC-2013 A Capitalized Interest 31392HWL3 FNR 2003-3 BC42,291.91 - - - (6,356.14) (207.70) (105.82) (150.40) 35,471.85 143.38 205091001 LC-2013 A Capitalized Interest 31392F6C6 FNR 2002-77 CB278,040.60 - - - (43,834.93) (1,537.14) (835.69) (640.16) 231,192.67 936.69 205091001 LC-2013 A Capitalized Interest 31393EXC8 FNR 2003-88 TH363,544.19 - - - (47,443.04) (1,738.76) (876.74) (727.04) 312,758.60 1,130.86 205091001 LC-2013 A Capitalized Interest 912828UB4 US TREASURY N/B2,445,325.00 - - - - - 3,643.24 26,106.76 2,475,075.00 8,401.64 205091001 LC-2013 A Capitalized Interest 166764AE0 CHEVRON CORP2,213,112.00 - - - - - (1,144.03) 5,104.03 2,217,072.00 10,183.92 205091001 LC-2013 A Capitalized Interest 89236TAY1 TOYOTA MOTOR CREDIT CO2,018,460.00 - - - - - (1,713.33) 4,213.33 2,020,960.00 17,444.44 205091001 LC-2013 A Capitalized Interest 89114QAE8 TORONTO-DOMINION BANK764,160.00 - - - - - (2,042.39) 294.89 762,412.50 8,015.63 205091001 LC-2013 A Capitalized Interest 912828UA6 US TREASURY N/B1,742,475.00 - - - - - 2,827.46 1,512.54 1,746,815.00 3,675.72 205091001 LC-2013 A Capitalized Interest 31402RBG3 FN 735439256,545.25 - - - (41,606.00) (1,884.44) (718.77) 279.97 212,616.02 1,024.21 205091001 LC-2013 A Capitalized Interest 31402RBG3 FN 73543911,959.94 - - - (1,939.64) (85.16) (32.60) 9.45 9,911.99 47.75 205091001 LC-2013 A Capitalized Interest 31402RBG3 FN 73543919,781.07 - - - (3,208.05) (131.79) (50.91) 3.57 16,393.88 78.97 205091001 LC-2013 A Capitalized Interest 44328MAL8 HSBC BANK PLC1,020,310.00 - - - - - (4,477.22) (1,082.78) 1,014,750.00 10,936.11 205091001 LC-2013 A Capitalized Interest 44328MAL8 HSBC BANK PLC2,678,313.75 - - - - - (10,876.11) (3,718.89) 2,663,718.75 28,707.29 205091001 LC-2013 A Capitalized Interest 30231GAL6 EXXON MOBIL CORPORATIO579,530.20 - - - - - 61.53 1,777.07 581,368.80 525.63 205091001 LC-2013 A Capitalized Interest 3136ACGF2 FNA 2013-M3 ASQ21,149,975.61 - - - (474,203.15) 2.56 (334.29) (1,201.58) 674,239.14 608.22 205091001 LC-2013 A Capitalized Interest31392FPP6 FNR 2002-74 PE175,831.17 - - - (28,986.02) (982.19) (509.31) (417.48) 144,936.16 587.92 205091001 LC-2013 A Capitalized Interest 3136A8G38 FNA 2012-M13 ASQ22,505,397.40 - - - (131,415.62) 1,161.03 2,002.74 (4,083.25) 2,373,062.30 2,451.99 205091001 LC-2013 A Capitalized Interest 31410GSQ7 FN 888927142,752.26 - - - (24,586.29) (961.23) (621.08) 217.20 116,800.85 563.79 205091001 LC-2013 A Capitalized Interest 313384PU7 FED HOME LN DISCOUNT NT- 649,706.06 - - - - 103.52 125.42 649,935.00 - 205091001 LC-2013 A Capitalized Interest 3128MBTH0 FG G13052120,898.79 - - - (16,099.54) (633.26) (309.77) (225.20) 103,631.02 415.31 205091001 LC-2013 A Capitalized Interest 36290WH47 GN 619551982,450.50 - - - (93,485.59) (4,059.77) (2,996.46) (10,742.09) 871,166.60 3,158.41 205091001 LC-2013 A Capitalized Interest 3128H4NR6 FG E9670094,655.79 - - - (12,651.51) (461.40) (265.38) (173.48) 81,104.02 325.03 205091001 LC-2013 A Capitalized Interest 3128PGLY7 FG J04843211,073.42 - - - (34,860.98) (886.25) (639.23) (745.97) 173,940.98 697.08 205091001 LC-2013 A Capitalized Interest 912828UZ1 US TREASURY N/B3,369,468.00 - - - - - 3,364.70 9,725.30 3,382,558.00 8,892.66 205091001 LC-2013 A Capitalized Interest 822582AC6 SHELL INTERNATIONAL FIN428,224.00 - - - - - (3,388.89) (1,595.11) 423,240.00 520.00 205091001 LC-2013 A Capitalized Interest 184126YS3 CLAYTON CO WTR-B-REF775,082.00 - - - - - 929.47 (1,129.67) 774,881.80 4,170.83 205091001 LC-2013 A Capitalized Interest 64966H4E7 NYC-TAXABLE-C1,208,223.90 - - - - - (4,067.82) 1,552.32 1,205,708.40 18,369.00 205091001 LC-2013 A Capitalized Interest 037833AJ9 APPLE INC2,969,670.00 - - - - - 3,395.52 12,924.48 2,985,990.00 12,333.33 STAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015205091001 LC-2013 A Capitalized Interest912828SY7 US TREASURY N/B3,899,376.00 --- --4,619.01 (1,109.01) 3,902,886.00 8,191.60 205091001 LC-2013 A Capitalized Interest 407288YD5 HAMILTON SWR-B-REF2,082,371.20 - - - - - - (1,331.20) 2,081,040.00 5,567.47 205091001 LC-2013 A Capitalized Interest 084664BE0 BERKSHIRE HATHAWAY FIN887,296.00 - - - - - (7,687.95) 1,791.95 881,400.00 16,320.00 205091001 LC-2013 A Capitalized Interest 31392BVM5 FNR 2002-3 PG67,179.60 - - - (19,770.64) (451.57) (221.23) 28.50 46,764.67 210.58 205091001 LC-2013 A Capitalized Interest 912828J84 US TREASURY N/B2,970,480.00 - - - - - 2,002.90 36,577.10 3,009,060.00 112.70 205091001 LC-2013 A Capitalized Interest 912828J84 US TREASURY N/B1,287,208.00 - - - - - 880.43 15,837.57 1,303,926.00 48.84 205091001 LC-2013 A Capitalized Interest 459200GX3 IBM CORP471,682.05 - - - - - (1,082.15) (257.05) 470,342.85 1,737.94 205091001 LC-2013 A Capitalized Interest 78008K5V1 ROYAL BANK OF CANADA2,034,980.00 - - - - - (9,119.72) (260.28) 2,025,600.00 25,875.00 205091001 LC-2013 A Capitalized Interest 3136A4M89 FNA 2012-M3 2A1597,767.67 - - - (15,945.87) (56.80) (197.62) 2,401.99 583,969.36 923.62 205091001 LC-2013 A Capitalized Interest 3130A3BD5 FEDERAL HOME LOAN BANK- 601,338.00 - - - - (969.57) (8.43) 600,360.00 4,025.00 205091001 LC-2013 A Capitalized Interest 89153VAC3 TOTAL CAPITAL INTL SA161,484.80 - - - - - 142.26 (455.86) 161,171.20 640.67 205091001 LC-2013 A Capitalized Interest 90327QCW7 USAA CAPITAL CORP4,077,040.00 - - - - - (10,757.48) 2,477.48 4,068,760.00 250.00 205091001 LC-2013 A Capitalized Interest 31294LPZ0 FG E02240141,753.18 - - - (31,454.29) (747.84) (628.94) 31.59 108,953.71 535.38 205091001 LC-2013 A Capitalized Interest 912828RU6 US TREASURY N/B3,520,510.00 - - - - - 233.25 (3,033.25) 3,517,710.00 10,292.01 205091001 LC-2013 A Capitalized Interest 36200AFG9 GN 59516749,610.72 - - - (6,247.67) (246.33) (147.50) 51.88 43,021.10 191.57 205091001 LC-2013 A Capitalized Interest 235219JS2 DALLAS-B-REF-TXBL2,164,398.95 - - - - - - (2,305.80) 2,162,093.15 4,334.88 205091001 LC-2013 A Capitalized Interest 31393V2T7 FHR 2627 GY688,235.99 - - - (93,412.03) (3,442.64) (1,514.39) (3,285.01) 586,581.92 2,127.85 205091001 LC-2013 A Capitalized Interest 31402QT68 FN 735073281,901.91 - - - (38,086.40) (2,074.77) (770.61) 526.24 241,496.38 1,154.94 205091001 LC-2013 A Capitalized Interest 3128GNR59 FG E85908118,138.19 - - - (29,487.06) (769.97) (522.56) 462.41 87,821.01 431.99 205091001 LC-2013 A Capitalized Interest 31401MWC1 FN 712643846,792.21 - - - (136,736.51) (4,984.50) (1,809.96) (2,433.02) 700,828.22 2,535.68 205091001 LC-2013 A Capitalized Interest 742718DV8 PROCTER & GAMBLE CO/THE1,249,448.80 - - - - - (1,318.05) 2,595.25 1,250,726.00 2,297.44 205091001 LC-2013 A Capitalized Interest 3128PHVS7 FG J0602591,646.98 - - - (16,271.09) (541.89) (248.10) (241.31) 74,344.59 297.94 205091001 LC-2013 A Capitalized Interest 3132FEAK7 FG Z50010169,089.93 - - - (30,969.47) (1,121.63) (366.94) (451.87) 136,180.02 545.75 205091001 LC-2013 A Capitalized Interest3137ANLP8FHMS K501 A23,097,016.00 --- (9,091.65)(22.07)(2,741.57) (5,274.73) 3,079,885.98 4,221.50 59,841,573.28 2,844,676.38 (1,253,844.06) - (1,388,149.18) (26,865.52) (51,904.15) 79,548.34 60,045,035.09 237,216.17 256350001 LC-Project Fund-2 Senior Lien 9AMMF05B2 U.S. Bank Money Market Accoun189,003.04 69,140,395.54 (69,232,409.10) - - - - - 96,989.48 - 256350001 LC-Project Fund-2 Senior Lien27886MX65 Ecolab Inc.- 1,999,253.34 - - - - 629.99 76.67 1,999,960.00 - 256350001 LC-Project Fund-2 Senior Lien2925A3UA4 Enbridge Energy Partners, L.P.1,999,920.00 - - (2,000,000.00) - - 315.00 (235.00) - - 256350001 LC-Project Fund-2 Senior Lien88513BUQ1 Thomson Reuters Corporation1,999,800.00 - - (2,000,000.00) - - 664.45 (464.45) - - 256350001 LC-Project Fund-2 Senior Lien1518T3UD2 CenterPoint Energy, Inc.1,999,900.00 - - (2,000,000.00) - - 300.00 (200.00) - - 256350001 LC-Project Fund-2 Senior Lien44890NVB3 Hyundai Capital America- 1,999,100.00 - (2,000,000.00) - - 900.00 - - - 256350001 LC-Project Fund-2 Senior Lien3024X3U69 FMC Technologies, Inc.1,399,972.00 - - (1,400,000.00) - - 85.56 (57.56) - - 256350001 LC-Project Fund-2 Senior Lien84364UX93 Southern Power Company- 1,999,250.00 - - - - 550.00 120.00 1,999,920.00 - 256350001 LC-Project Fund-2 Senior Lien20279WWG2 Commonwealth Edison Company- 1,999,300.00 - (2,000,000.00) - - 700.00 - - - 256350001 LC-Project Fund-2 Senior Lien13638XXE5 Canadian Natural Resources Limi- 1,998,786.67 - - - - 837.78 255.55 1,999,880.00 - 256350001 LC-Project Fund-2 Senior Lien05634FXE4 Bacardi-Martini B.V.- 1,999,131.12 - - - - 536.66 212.22 1,999,880.00 - 256350001 LC-Project Fund-2 Senior Lien43357MVS6 Hitachi Capital America Corp.- 1,474,373.13 - (1,475,000.00) - - 626.87 - - - Page 11 of 33ATTACHMENT 463 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350001 LC-Project Fund-2 Senior Lien161571FR0 CHAIT 2012-A8 A8 - 105,000.00 - - - - - - 105,000.00 25.20 256350001 LC-Project Fund-2 Senior Lien29380DWQ9 Enterprise Products Operating LL- 1,999,268.88 - (2,000,000.00) - - 731.12 - - - 256350001 LC-Project Fund-2 Senior Lien43357MXM7 Hitachi Capital America Corp. - 1,999,348.34 - - - - 85.00 386.66 1,999,820.00 - 256350001 LC-Project Fund-2 Senior Lien74432KVQ8 Prudential Financial, Inc.- 1,998,826.67 - (2,000,000.00) - - 1,173.33 - - - 256350001 LC-Project Fund-2 Senior Lien9255M3W22 Viacom Inc.- 1,999,095.56 - (2,000,000.00) - - 904.44 - - - 256350001 LC-Project Fund-2 Senior Lien77434MVE2 Rockwell Collins, Inc.1,999,540.00 - - (2,000,000.00) - - 1,173.34 (713.34) - - 256350001 LC-Project Fund-2 Senior Lien74432KX52 Prudential Financial, Inc.- 1,999,043.33 - - - - 865.56 51.11 1,999,960.00 - 256350001 LC-Project Fund-2 Senior Lien6362P3W42 National Grid USA Service Comp- 1,998,645.56 - (2,000,000.00) - - 1,354.44 - - - 256350001 LC-Project Fund-2 Senior Lien29250BU25 Encana Corporation 2,000,000.00 - - (2,000,000.00) - - 32.22 (32.22) - - 256350001 LC-Project Fund-2 Senior Lien66807NVT9 NorthWestern Corporation - 1,999,194.44 - (2,000,000.00) - - 805.56 - - - 256350001 LC-Project Fund-2 Senior Lien69430MU61 Pacific Gas and Electric Company1,524,969.50 - - (1,525,000.00) - - 86.84 (56.34) - - 256350001 LC-Project Fund-2 Senior Lien12665KU95 CVS Health Corp. 1,999,940.00 - - (2,000,000.00) - - 195.56 (135.56) - - 256350001 LC-Project Fund-2 Senior Lien6821A3VA0 Omnicom Capital Inc. - 1,999,182.22 - (2,000,000.00) - - 817.78 - - - 256350001 LC-Project Fund-2 Senior Lien6116M3YC5 Monsanto Company - 2,098,107.08 - - - - 447.42 941.50 2,099,496.00 - 256350001 LC-Project Fund-2 Senior Lien27743KW30 Eastman Chemical Company - 2,099,186.25 - (2,100,000.00) - - 813.75 - - - 256350001 LC-Project Fund-2 Senior Lien3133XDDQ1 FHLB TQ-2015 A- 184,822.27 - - (7,357.54) (43.10) (1,428.76) 110.30 176,103.17 271.73 256350001 LC-Project Fund-2 Senior Lien27743KUL2 Eastman Chemical Company1,999,840.00 - - (2,000,000.00) - - 475.00 (315.00) - - 256350001 LC-Project Fund-2 Senior Lien05634CUN4 Bacardi U.S.A., Inc.1,999,820.00 - - (2,000,000.00) - - 560.00 (380.00) - - 256350001 LC-Project Fund-2 Senior Lien68268UU21 ONEOK Partners, L.P.2,000,000.00 - - (2,000,000.00) - - 37.22 (37.22) - - 256350001 LC-Project Fund-2 Senior Lien61979KU69 Motiva Enterprises LLC1,999,960.00 - - (2,000,000.00) - - 119.44 (79.44) - - 256350001 LC-Project Fund-2 Senior Lien07787QXN1 The Bell Telephone Company of C- 1,899,179.83 - - - - 354.67 275.50 1,899,810.00 - 256350001 LC-Project Fund-2 Senior Lien25737MXS2 Dominion Gas Holdings, LLC - 1,998,728.88 - - - - 660.00 371.12 1,999,760.00 - 256350001 LC-Project Fund-2 Senior Lien25156LV33 Deutsche Telekom AG - 1,999,253.34 - (2,000,000.00) - - 746.66 - - - 256350001 LC-Project Fund-2 Senior Lien25156LV33 Deutsche Telekom AG - 1,999,305.56 - (2,000,000.00) - - 694.44 - - - 256350001 LC-Project Fund-2 Senior Lien8426E3X93 Southern Company Funding Corp - 1,099,610.12 - - - - 282.33 63.55 1,099,956.00 - 256350001 LC-Project Fund-2 Senior Lien83701MXF1 South Carolina Fuel Company, In- 1,999,440.00 - - - - 233.33 186.67 1,999,860.00 - 256350001 LC-Project Fund-2 Senior Lien37790BVQ1 Glencore Funding LLC - 1,999,028.33 - (2,000,000.00) - - 971.67 - - - 256350001 LC-Project Fund-2 Senior Lien68268UW45 ONEOK Partners, L.P. - 2,098,806.50 - (2,100,000.00) - - 1,193.50 - - - 256350001 LC-Project Fund-2 Senior Lien96950MUE7 Williams Partners L.P. 1,999,900.00 - - (2,000,000.00) - - 361.11 (261.11) - - 256350001 LC-Project Fund-2 Senior Lien28103BWF5 Edison International- 1,799,339.99 - (1,800,000.00) - - 660.01 - - - 256350001 LC-Project Fund-2 Senior Lien92780KWP9 Virginia Electric and Power Comp- 1,999,393.34 - (2,000,000.00) - - 606.66 - - - 256350001 LC-Project Fund-2 Senior Lien28103BVD1 Edison International - 1,999,276.66 - (2,000,000.00) - - 723.34 - - - 256350001 LC-Project Fund-2 Senior Lien05634CW93 Bacardi U.S.A., Inc. - 2,098,872.99 - (2,100,000.00) - - 1,127.01 - - - 256350001 LC-Project Fund-2 Senior Lien13638XV49 Canadian Natural Resources Limi- 1,999,194.44 - (2,000,000.00) - - 805.56 - - - 256350001 LC-Project Fund-2 Senior Lien65475MY53 Nissan Motor Acceptance Corpora- 1,998,700.00 - - - - 425.00 475.00 1,999,600.00 - 256350001 LC-Project Fund-2 Senior Lien89231NAC7 TAOT 2012-B A3 137,151.40 - - - (120,455.03) (11.19) (6.48) 9.44 16,688.14 3.41 256350001 LC-Project Fund-2 Senior Lien89231NAC7 TAOT 2012-B A3 30,173.31 - - - (26,500.11) (0.78) (0.45) (0.59) 3,671.39 0.75 256350001 LC-Project Fund-2 Senior Lien29250BV65 Encana Corporation - 1,999,001.12 - (2,000,000.00) - - 998.88 - - - 256350001 LC-Project Fund-2 Senior Lien84364UVD6 Southern Power Company - 1,999,190.56 - (2,000,000.00) - - 809.44 - - - 256350001 LC-Project Fund-2 Senior Lien1248C3XG4 CBS Corporation - 1,899,303.33 - - - - 348.34 215.34 1,899,867.00 - 256350001 LC-Project Fund-2 Senior Lien26244JVH9 Duke Energy Corporation - 1,999,244.44 - (2,000,000.00) - - 755.56 - - - 256350001 LC-Project Fund-2 Senior Lien91324PCJ9 UNITEDHEALTH GROUP INC - 290,222.43 - - - - (23.50) (204.73) 289,994.20 419.59 256350001 LC-Project Fund-2 Senior Lien61979KXD1 Motiva Enterprises LLC- 1,999,200.00 - - - - 500.00 180.00 1,999,880.00 - 256350001 LC-Project Fund-2 Senior Lien44890NU65 Hyundai Capital America1,999,960.00 - - (2,000,000.00) - - 138.90 (98.90) - - 256350001 LC-Project Fund-2 Senior Lien57163UWH5 Marriott International, Inc.- 1,999,028.88 - (2,000,000.00) - - 971.12 - - - 256350001 LC-Project Fund-2 Senior Lien63946EUD4 Comcast Corporation1,999,900.00 - - (2,000,000.00) - - 286.67 (186.67) - - 256350001 LC-Project Fund-2 Senior Lien15103HWP7 Celgene Corporation- 1,499,533.34 - (1,500,000.00) - - 466.66 - - - 256350001 LC-Project Fund-2 Senior Lien27805BU94 Eaton Corporation1,999,940.00 - - (2,000,000.00) - - 200.00 (140.00) - - 256350001 LC-Project Fund-2 Senior Lien57163UUV6 Marriott International, Inc.1,999,760.00 - - (2,000,000.00) - - 731.12 (491.12) - - 256350001 LC-Project Fund-2 Senior Lien6821A3W27 Omnicom Capital Inc.- 1,999,462.22 - (2,000,000.00) - - 537.78 - - - 256350001 LC-Project Fund-2 Senior Lien57174WWE5 Marsh & McLennan Companies, I- 1,999,173.34 - (2,000,000.00) - - 826.66 - - - 256350001 LC-Project Fund-2 Senior Lien55314QAC1 MMAF 2012-AA A3 92,291.78 - - - (92,258.57) (19.79) (7.57) (5.86) - - 256350001 LC-Project Fund-2 Senior Lien88513BY46 Thomson Reuters Corporation - 1,997,933.33 - - - - 933.33 733.34 1,999,600.00 - 256350001 LC-Project Fund-2 Senior Lien60920WU65 Mondelez International, Inc. 1,999,960.00 - - (2,000,000.00) - - 122.22 (82.22) - - 256350001 LC-Project Fund-2 Senior Lien28103BY22 Edison International - 1,349,448.75 - - - - 47.25 247.50 1,349,743.50 - 256350001 LC-Project Fund-2 Senior Lien25471KVU3 Discovery Communications, LLC - 1,999,402.78 - (2,000,000.00) - - 597.22 - - - 256350001 LC-Project Fund-2 Senior Lien03251WWB1 Anadarko Petroleum Corporation - 1,999,375.00 - (2,000,000.00) - - 625.00 - - - 256350001 LC-Project Fund-2 Senior Lien66807NUV5 NorthWestern Corporation 1,999,760.00 - - (2,000,000.00) - - 777.78 (537.78) - - 256350001 LC-Project Fund-2 Senior Lien92939BVB1 WPP CP LLC- 1,999,111.11 - (2,000,000.00) - - 888.89 - - - 256350001 LC-Project Fund-2 Senior Lien29250BW80 Encana Corporation- 1,699,127.34 - (1,700,000.00) - - 872.66 - - - 256350001 LC-Project Fund-2 Senior Lien77434MX18 Rockwell Collins, Inc.- 1,998,802.22 - - - - 1,197.78 - 2,000,000.00 - 256350001 LC-Project Fund-2 Senior Lien92939BXN3 Wells Fargo Commercial Mortgag- 1,999,162.22 - - - - 231.11 406.67 1,999,800.00 - 256350001 LC-Project Fund-2 Senior Lien6116M3VH7 Monsanto Company 1,999,500.00 - - (2,000,000.00) - - 1,383.89 (883.89) - - 256350001 LC-Project Fund-2 Senior Lien1518T3WA6 CenterPoint Energy, Inc. - 999,162.22 - (1,000,000.00) - - 837.78 - - - 256350001 LC-Project Fund-2 Senior Lien29380DVA5 Enterprise Products Operating LL- 1,999,125.00 - (2,000,000.00) - - 875.00 - - - 256350001 LC-Project Fund-2 Senior Lien6362P3UQ5 National Grid USA 1,999,800.00 - - (2,000,000.00) - - 485.55 (285.55) - - 256350001 LC-Project Fund-2 Senior Lien26244JXK0 Duke Energy Corporation - 1,998,851.11 - - - - 708.89 280.00 1,999,840.00 - Page 12 of 3364 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350001 LC-Project Fund-2 Senior Lien2574P1XK3 Dominion Resources, Inc. - 1,998,444.44 - - - - 1,055.56 340.00 1,999,840.00 - 256350001 LC-Project Fund-2 Senior Lien92939BWM6 WPP CP LLC - 1,998,815.56 - (2,000,000.00) - - 1,184.44 - - - 256350001 LC-Project Fund-2 Senior Lien44890NX13Hyundai Capital America- 1,998,640.00 - - - - 1,360.00 - 2,000,000.00 - 41,370,761.03 173,796,201.12 (69,232,409.10) (104,700,000.00) (246,571.25) (74.86) 46,958.35 53.59 41,034,918.88 720.68 256350004 LC-PF-2 Sales Tax Revenue Bond 9AMMF05B2 U.S. Bank Money Market Accoun376,394.86 70,002,147.93 (70,292,884.65) - - - - - 85,658.14 - 256350004 LC-PF-2 Sales Tax Revenue Bond 2925A3UA4 Enbridge Energy Partners, L.P. 3,299,868.00 - - (3,300,000.00) - - 519.75 (387.75) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 88513BUQ1 Thomson Reuters Corporation 3,299,670.00 - - (3,300,000.00) - - 1,096.34 (766.34) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 1518T3UD2 CenterPoint Energy, Inc. 3,199,840.00 - - (3,200,000.00) - - 480.00 (320.00) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 84364UX93 Southern Power Company - 2,499,062.50 - - - - 687.50 150.00 2,499,900.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 05333UXK1 AutoZone, Inc. - 2,499,250.00 - - - - 250.00 300.00 2,499,800.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 13638XXE5 Canadian Natural Resources Limi- 2,748,151.40 - - - - 1,302.42 381.18 2,749,835.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 29380DWQ9 Enterprise Products Operating LL- 2,699,012.99 - (2,700,000.00) - - 987.01 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 43357MXM7 Hitachi Capital America Corp. - 2,299,250.59 - - - - 97.75 444.66 2,299,793.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 6362P3WR1 National Grid USA Service Comp- 2,697,615.01 - (2,700,000.00) - - 2,384.99 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 43357MVT4 Hitachi Capital America Corp. - 2,798,770.32 - (2,800,000.00) - - 1,229.68 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 27743KY20 Eastman Chemical Company - 1,499,343.75 - - - - 56.25 315.00 1,499,715.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 9255M3W22 Viacom Inc. - 2,698,779.01 - (2,700,000.00) - - 1,220.99 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 77434MVE2 Rockwell Collins, Inc. 3,199,264.00 - - (3,200,000.00) - - 1,877.34 (1,141.34) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 20279WX89 Commonwealth Edison Company - 2,698,415.99 - - - - 1,332.01 171.00 2,699,919.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 29250BU25 Encana Corporation 3,300,000.00 - - (3,300,000.00) - - 53.17 (53.17) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 66807NVT9 NorthWestern Corporation - 2,798,872.22 - (2,800,000.00) - - 1,127.78 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 29251VWM4 Enbridge (U.S.) Inc. - 1,899,135.50 - (1,900,000.00) - - 864.50 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 12665KU95 CVS Health Corp.3,299,901.00 - - (3,300,000.00) - - 322.67 (223.67) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 6821A3VA0 Omnicom Capital Inc.- 3,198,691.55 (249,968.75) (2,950,000.00) - 0.69 1,276.51 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 6116M3YC5 Monsanto Company- 2,597,656.39 - - - - 553.94 1,165.67 2,599,376.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 64468EAZ3 NH BUS TXB-SER B3,200,000.00 - - - - - - - 3,200,000.00 426.67 256350004 LC-PF-2 Sales Tax Revenue Bond 05634CUN4 Bacardi U.S.A., Inc.3,199,712.00 - - (3,200,000.00) - - 896.00 (608.00) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 68268UU21 ONEOK Partners, L.P.3,200,000.00 - - (3,200,000.00) - - 59.56 (59.56) - - 256350004 LC-PF-2 Sales Tax Revenue Bond61979KU69 Motiva Enterprises LLC899,982.00 - - (900,000.00) - - 53.75 (35.75) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 25737MXS2 Dominion Gas Holdings, LLC- 1,998,728.88 - - - - 660.00 371.12 1,999,760.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 25156LV33 Deutsche Telekom AG- 3,198,888.90 - (3,200,000.00) - - 1,111.10 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 37790BVQ1 Glencore Funding LLC- 2,798,639.67 - (2,800,000.00) - - 1,360.33 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 83701MXF1 South Carolina Fuel Company, In- 2,299,356.00 - - - - 268.33 214.67 2,299,839.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 68268UW45 ONEOK Partners, L.P. - 1,998,863.33 - (2,000,000.00) - - 1,136.67 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 96950MUE7 Williams Partners L.P. 3,199,840.00 - - (3,200,000.00) - - 577.78 (417.78) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 92939BWJ3 WPP CP LLC - 2,698,728.00 - (2,700,000.00) - - 1,272.00 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 92780KWP9 Virginia Electric and Power Comp- 2,699,181.01 - (2,700,000.00) - - 818.99 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 05634CW93 Bacardi U.S.A., Inc. - 2,698,550.99 - (2,700,000.00) - - 1,449.01 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 13638XV49 Canadian Natural Resources Limi- 1,999,194.44 - (2,000,000.00) - - 805.56 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 407288YD5 HAMILTON SWR-B-REF 6,652,575.30 - - - - - - (4,252.80) 6,648,322.50 17,786.45 256350004 LC-PF-2 Sales Tax Revenue Bond 84364UVD6 Southern Power Company - 2,798,866.78 - (2,800,000.00) - - 1,133.22 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 65475MY53 Nissan Motor Acceptance Corpora- 2,298,505.00 - - - - 488.75 546.25 2,299,540.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 89231NAC7 TAOT 2012-B A3 148,809.27 - - - (130,693.71) (12.14) (7.03) 10.24 18,106.63 3.70 256350004 LC-PF-2 Sales Tax Revenue Bond 07588MUT1 Becton, Dickinson and Company 3,299,637.00 - - (3,300,000.00) - - 1,072.50 (709.50) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 3133XCQE6 FHLB SD-2015 1 109,281.54 0.00 - - (108,852.60) (0.06) (311.76) (117.12) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 26244JVH9 Duke Energy Corporation - 2,299,131.11 - (2,300,000.00) - - 868.89 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 91324PCJ9 UNITEDHEALTH GROUP INC - 395,302.97 - - - - (32.01) (278.86) 394,992.10 571.51 256350004 LC-PF-2 Sales Tax Revenue Bond 27805BU94 Eaton Corporation 3,299,901.00 - - (3,300,000.00) - - 330.00 (231.00) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 57163UUV6 Marriott International, Inc. 3,199,616.00 - - (3,200,000.00) - - 1,169.79 (785.79) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 6821A3W27 Omnicom Capital Inc. - 2,699,274.00 - (2,700,000.00) - - 726.00 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 64468EAY6 NH ST BUS FIN-TXB-A 4,190,000.00 - - - - - - - 4,190,000.00 558.67 256350004 LC-PF-2 Sales Tax Revenue Bond 57174WWE5 Marsh & McLennan Companies, I- 2,698,884.01 - (2,700,000.00) - - 1,115.99 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 55314QAC1 MMAF 2012-AA A3 369,167.12 - - - (369,034.26) (56.17) (21.45) (55.23) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 55314QAC1 MMAF 2012-AA A3 142,006.28 - - - (141,955.18) (26.15) (9.99) (14.96) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 88513BY46 Thomson Reuters Corporation - 1,997,933.33 - - - - 933.33 733.34 1,999,600.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 57163UX50 Marriott International, Inc. - 2,698,162.49 - - - - 1,687.51 96.00 2,699,946.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 44890NU24 Hyundai Capital America 3,300,000.00 - - (3,300,000.00) - - 44.92 (44.92) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 28103BY22 Edison International - 2,299,060.84 - - - - 80.50 421.66 2,299,563.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 25471KVU3 Discovery Communications, LLC - 2,799,163.89 - (2,800,000.00) - - 836.11 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 27805BWN1 Eaton Corporation - 2,499,156.25 - (2,500,000.00) - - 843.75 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 60920WU65 Mondelez International, Inc.2,349,953.00 - - (2,350,000.00) - - 143.61 (96.61) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 92939BXN3 Wells Fargo Commercial Mortgag- 2,498,952.78 - - - - 288.89 508.33 2,499,750.00 - 256350004 LC-PF-2 Sales Tax Revenue Bond 6116M3VH7 Monsanto Company 3,099,225.00 - - (3,100,000.00) - - 2,145.03 (1,370.03) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 6362P3UQ5 National Grid USA 3,199,680.00 - - (3,200,000.00) - - 776.88 (456.88) - - 256350004 LC-PF-2 Sales Tax Revenue Bond 92939BVB1 WPP CP LLC - 2,798,755.56 - (2,800,000.00) - - 1,244.44 - - - 256350004 LC-PF-2 Sales Tax Revenue Bond 2574P1XK3 Dominion Resources, Inc. - 2,698,012.50 - - - - 1,312.50 459.00 2,699,784.00 - Page 13 of 3365 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350004 LC-PF-2 Sales Tax Revenue Bond44890NW22Hyundai Capital America- 2,798,055.57 - (2,800,000.00) - - 1,944.43 - - - 67,034,323.37 164,301,503.45 (70,542,853.40) (109,900,000.00) (750,535.75) (93.83) 46,994.47 (6,138.94) 50,183,199.37 19,347.00 256350005 LC-Project Fund-Toll 2 9AMMF05B2 U.S. Bank Money Market Accoun10,729.00 10,539,193.64 (10,358,064.22) - - - - - 191,858.42 - 256350005 LC-Project Fund-Toll 236962G7H1 GENERAL ELEC CAP CORP - 115,155.25 - - - - (1.65) (37.45) 115,116.15 86.32 256350005 LC-Project Fund-Toll 217305EFE0 CCCIT 2013-A6 A6 331,663.20 - - - - - (358.08) 305.28 331,610.40 290.40 256350005 LC-Project Fund-Toll 200138CAA6 AIG GLOBAL FUNDING 300,432.00 - - - - - (69.39) 294.39 300,657.00 1,457.50 256350005 LC-Project Fund-Toll 2912828TG5 US TREASURY N/B - 672,969.73 - - - - 102.50 679.02 673,751.25 568.61 256350005 LC-Project Fund-Toll 236225FGM5 G2 82903 - 128,116.67 - - (2,715.59) (94.97) (17.13) 710.77 125,999.75 163.95 256350005 LC-Project Fund-Toll 289153UAE1 TOTAL CAPITAL CANADA LT300,306.00 - - - - - - 228.00 300,534.00 918.33 256350005 LC-Project Fund-Toll 2718172AA7 PHILIP MORRIS INTL INC 277,637.50 - - - - - (2,347.11) 819.61 276,110.00 5,296.88 256350005 LC-Project Fund-Toll 222546QAM9 CREDIT SUISSE NEW YORK - 249,357.50 - - - - 6.33 (211.33) 249,152.50 205.40 256350005 LC-Project Fund-Toll 226442CAD6 DUKE ENERGY CAROLINAS 127,352.92 - - - - - (993.30) (41.42) 126,318.20 2,727.93 256350005 LC-Project Fund-Toll 2912828KQ2 US TREASURY N/B 640,266.00 - - - - - (2,371.28) 4,699.28 642,594.00 7,082.20 256350005 LC-Project Fund-Toll 289114QAZ1 TORONTO-DOMINION BANK 301,605.00 - (301,290.00) - - 550.92 (11.46) (854.46) - - 256350005 LC-Project Fund-Toll 238378NNA7 GNR 2013-194 AB 597,212.67 - - - (2,954.75) (19.74) (295.07) 1,931.40 595,874.52 1,105.68 256350005 LC-Project Fund-Toll 2084664CD1 BERKSHIRE HATHAWAY FIN- 300,162.00 - - - - (8.82) (1,371.18) 298,782.00 390.67 256350005 LC-Project Fund-Toll 247787RAD2 JDOT 2012-B A4 - 330,051.56 - - (5,856.01) (0.75) (10.67) (92.00) 324,092.13 99.40 256350005 LC-Project Fund-Toll 247787RAD2 JDOT 2012-B A4 350,210.00 - - - (6,210.91) (0.65) (16.24) (248.11) 343,734.08 105.43 256350005 LC-Project Fund-Toll 274153WCE7 PRICOA GLOBAL FUNDING 1 299,052.00 - - - - - 56.76 42.24 299,151.00 483.75 256350005 LC-Project Fund-Toll 247787UAC7 JDOT 2015-A A2B 424,974.50 - - - - - (9.94) (432.06) 424,532.50 90.02 256350005 LC-Project Fund-Toll 205565QCY2 BP CAPITAL MARKETS PLC 301,050.00 - (300,532.80) - - (4.59) (26.94) (485.66) - - 256350005 LC-Project Fund-Toll 292976WBH8 WACHOVIA CORP220,884.00 - - - - - (1,996.36) (37.64) 218,850.00 1,916.67 256350005 LC-Project Fund-Toll 290290KAD7 USAOT 2014-1 A4 444,790.85 - - - - - 147.84 808.91 445,747.60 185.91 256350005 LC-Project Fund-Toll 23130A6G92 FEDERAL HOME LOAN BANK- 350,000.00 - - - - - - 350,000.00 23.82 256350005 LC-Project Fund-Toll 238378BR35 GNR 2012-142 AB - 349,533.15 - - (12,246.40) 276.65 182.69 955.80 338,701.89 383.61 256350005 LC-Project Fund-Toll 2928668AF9 VOLKSWAGEN GROUP AMER300,279.00 - - - - - (52.84) (12,391.16) 287,835.00 1,746.67 256350005 LC-Project Fund-Toll 236225FLU1 G2 83038 - 267,196.58 - - (4,795.16) (162.98) (46.05) 395.04 262,587.43 369.83 256350005 LC-Project Fund-Toll 23134G7CR0 FREDDIE MAC - 250,280.00 - (250,000.00) - - (280.00) - - - 256350005 LC-Project Fund-Toll 23134G7CR0 FREDDIE MAC 250,100.00 (250,280.00) - - - - - 180.00 - - 256350005 LC-Project Fund-Toll 23137AEV69 FHMS K703 A1 - 230,966.31 (185,404.17) - (45,235.01) (257.13) (70.00) - - - 256350005 LC-Project Fund-Toll 23137AEV69 FHMS K703 A1 230,908.85 (230,966.31) - - - - (84.10) 141.56 - - 256350005 LC-Project Fund-Toll 2073928S46 BEAR STEARNS COS LLC - 159,833.60 - - - - 2.36 (159.16) 159,676.80 131.81 256350005 LC-Project Fund-Toll 23138EKUP8 FN AL3289 - 305,289.63 - - - - 398.53 (3,735.28) 301,952.88 1,207.07 256350005 LC-Project Fund-Toll 2161571GR9 CHAIT 2014-A8 A8 - 340,000.00 - - - - - (204.00) 339,796.00 68.99 256350005 LC-Project Fund-Toll 2313383QM6 FEDERAL HOME LOAN BANK- 100,160.00 - (100,000.00) - - (160.00) - - - 256350005 LC-Project Fund-Toll 2313383QM6 FEDERAL HOME LOAN BANK100,111.00 (100,160.00) - - - - 63.16 (14.16) - - 256350005 LC-Project Fund-Toll 294974BEZ9 WELLS FARGO & COMPANY306,852.00 - - - - - (1,190.06) 317.06 305,979.00 2,318.75 256350005 LC-Project Fund-Toll 2172967GQ8 CITIGROUP INC - 80,093.60 - - - - (0.51) 0.51 80,093.60 219.51 256350005 LC-Project Fund-Toll 240428HPQ9 HSBC USA INC - 144,315.60 - - - - 30.26 256.84 144,602.70 178.03 256350005 LC-Project Fund-Toll 23137A85H7 FHR 3820 GJ - 193,488.62 - - (12,062.25) (514.77) 111.96 1,306.24 182,329.80 506.15 256350005 LC-Project Fund-Toll 238141GRC0 GOLDMAN SACHS GROUP IN304,563.00 - (222,809.40) - - 167.05 (233.11) (642.74) 81,044.80 364.17 256350005 LC-Project Fund-Toll 207330NAG0 BRANCH BANKING & TRUST300,393.00 - - - - - (24.90) (128.10) 300,240.00 1,050.00 256350005 LC-Project Fund-Toll 278011DAF1 ROYAL BANK OF CANADA 304,242.00 - (303,558.00) - - 745.39 (36.80) (1,392.60) - - 256350005 LC-Project Fund-Toll 23137A1LC5 FHR 3710 AB - 114,163.74 - - - - (23.74) 180.22 114,320.22 187.29 256350005 LC-Project Fund-Toll 205531FAL7 BB&T CORPORATION 250,847.50 - (250,632.50) - - (488.92) (104.03) 377.95 - - 256350005 LC-Project Fund-Toll 261979KUX0 Motiva Enterprises LLC - 949,715.00 - (950,000.00) - - 285.00 - - - 256350005 LC-Project Fund-Toll 24197915E4 HAWAII-TXBL-REF-ES300,411.00 - - - - - (70.17) 94.17 300,435.00 365.50 256350005 LC-Project Fund-Toll 255279HAH3 MANUF & TRADERS TRUST C- 248,907.50 - - - - 13.03 841.97 249,762.50 272.75 256350005 LC-Project Fund-Toll 238141GEG5 GOLDMAN SACHS GROUP IN- 49,992.00 - - - - 0.40 (3.90) 49,988.50 9.62 256350005 LC-Project Fund-Toll 2002799AM6 ABBEY NATL TREASURY SER300,624.00 - - - - - (114.42) (521.58) 299,988.00 206.25 256350005 LC-Project Fund-Toll 2747525AG8 QUALCOMM INC 299,067.00 - (298,578.00) - - (473.92) 13.46 (28.54) - - 256350005 LC-Project Fund-Toll 23137ANLP8 FHMS K501 A2 - 75,591.80 - - (222.11) (1.54) (141.55) 14.92 75,241.51 103.13 256350005 LC-Project Fund-Toll 23137ANLP8 FHMS K501 A2 100,880.00 - - - (296.15) (2.10) (206.67) (53.06) 100,322.02 137.51 256350005 LC-Project Fund-Toll 255315GAC2 MMAF 2015-AA A3 - 246,286.02 - - - - 79.73 446.53 246,812.28 143.05 256350005 LC-Project Fund-Toll 202582JGJ3 AMXCA 2013-3 A 487,374.99 - (487,532.66) - - 345.66 (15.75) (172.24) - - 256350005 LC-Project Fund-Toll 238377LN38 GNR 2010-130 LG 277,962.22 - - - (30,765.74) (1,037.18) (81.56) (1,000.06) 245,077.68 695.46 256350005 LC-Project Fund-Toll 236962G3H5 GENERAL ELEC CAP CORP326,679.00 - (327,222.00) - - 2,443.87 (3,044.22) 1,143.35 - - 256350005 LC-Project Fund-Toll 238141GVK7 GOLDMAN SACHS GROUP IN- 191,951.30 - - - - (88.97) (235.94) 191,626.40 497.69 256350005 LC-Project Fund-Toll 2912828UB4 US TREASURY N/B - 345,037.11 - - - - 112.00 1,361.39 346,510.50 1,176.23 256350005 LC-Project Fund-Toll 202582JGS3 AMXCA 2014-2 A - 500,859.38 - - - - (92.61) 1,123.23 501,890.00 280.00 256350005 LC-Project Fund-Toll 259217GAY5 MET LIFE GLOB FUNDING I 299,442.00 - - - - - 34.35 40.65 299,517.00 1,012.50 256350005 LC-Project Fund-Toll 23137AH6B9 FHMS K015 A1 - 178,904.46 - - - - (80.51) 219.70 179,043.65 329.29 256350005 LC-Project Fund-Toll 23137AH6B9 FHMS K015 A1 - - - - - - - - - - 256350005 LC-Project Fund-Toll 225468PCV6 WALT DISNEY COMPANY/TH299,823.00 - (299,085.00) - - (379.77) 27.70 (385.93) - - 256350005 LC-Project Fund-Toll 289233P6S0 TOYOTA MOTOR CREDIT CO200,510.00 - (199,660.00) - - (510.88) (10.00) (329.12) - - 256350005 LC-Project Fund-Toll 2842434CN0 SOUTHERN CALIF GAS CO 250,602.50 - - - - - 0.57 (925.57) 249,677.50 1,108.68 Page 14 of 3366 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350005 LC-Project Fund-Toll 258768WAD1 MBART 2013-1 A4 351,291.50 - - - - - (207.30) (293.20) 350,791.00 175.78 256350005 LC-Project Fund-Toll 2553794AA6 MUFG AMERICAS HLDGS CO298,857.00 - - - - - 120.54 257.46 299,235.00 704.17 256350005 LC-Project Fund-Toll 2161571FH2 CHAIT 2012-A2 A2 - 194,961.91 - - - - 4.58 (161.49) 194,805.00 41.30 256350005 LC-Project Fund-Toll 2161571FH2 CHAIT 2012-A2 A2 174,833.75 - - - - - 17.74 (26.49) 174,825.00 37.07 256350005 LC-Project Fund-Toll 261746BDC7 MORGAN STANLEY - 249,670.00 - - - - 0.86 (163.36) 249,507.50 373.62 256350005 LC-Project Fund-Toll 2822582AZ5 SHELL INTERNATIONAL FIN300,627.00 - - - - - (75.68) 117.68 300,669.00 1,020.00 256350005 LC-Project Fund-Toll 2912828UZ1 US TREASURY N/B - 296,988.28 - - - - 223.39 1,249.33 298,461.00 784.65 256350005 LC-Project Fund-Toll 2912828UZ1 US TREASURY N/B 1,635,183.00 - - - - - 1,853.86 4,498.64 1,641,535.50 4,315.56 256350005 LC-Project Fund-Toll 2166754AK7 CHEVRON PHILLIPS CHEM C299,703.00 - - - - - 32.01 (413.01) 299,322.00 1,969.17 256350005 LC-Project Fund-Toll 261979KU69 Motiva Enterprises LLC 1,399,972.00 - - (1,400,000.00) - - 83.61 (55.61) - - 256350005 LC-Project Fund-Toll 23134G56F7 FREDDIE MAC - 450,247.50 - (450,000.00) - - (247.50) - - - 256350005 LC-Project Fund-Toll 23134G56F7 FREDDIE MAC 450,594.00 (450,247.50) - - - - 37.65 (384.15) - - 256350005 LC-Project Fund-Toll 206406HCJ6 BANK OF NEW YORK MELLO248,530.00 - (248,509.00) - - (898.56) 43.67 833.89 - - 256350005 LC-Project Fund-Toll 296950MUA5 Williams Partners L.P.1,399,944.00 - - (1,400,000.00) - 0.00 175.00 (119.00) - - 256350005 LC-Project Fund-Toll 202582JGY0 AMXCA 2014-5 A175,134.75 - - - - - 11.87 (501.87) 174,644.75 38.62 256350005 LC-Project Fund-Toll 202582JGY0 AMXCA 2014-5 A360,277.20 - - - - - - (1,008.00) 359,269.20 79.45 256350005 LC-Project Fund-Toll 238377UN20 GNR 2011-62 PA192,048.00 - - - (36,537.75) (661.37) (147.73) (498.72) 154,202.43 380.18 256350005 LC-Project Fund-Toll 288513BUP3 Thomson Reuters Corporation1,399,874.00 - - (1,400,000.00) - (0.00) 444.89 (318.88) - - 256350005 LC-Project Fund-Toll 2912828UA6 US TREASURY N/B- 248,828.13 - - - - 103.13 613.74 249,545.00 525.10 256350005 LC-Project Fund-Toll 2912828UA6 US TREASURY N/B- 119,418.75 - - - - 51.15 311.70 119,781.60 252.05 256350005 LC-Project Fund-Toll 2912828UA6 US TREASURY N/B- 373,286.13 - - - - 150.84 880.53 374,317.50 787.65 256350005 LC-Project Fund-Toll 2912828UA6 US TREASURY N/B119,484.00 - - - - - 91.96 205.64 119,781.60 252.05 256350005 LC-Project Fund-Toll 23137A2AZ4 FHMS K009 A1- 431,511.48 - - (7,091.66) (204.77) (1,171.34) 892.02 423,935.73 946.08 256350005 LC-Project Fund-Toll 23136AEYG6 FNA 2013-M9 ASQ2- 234,336.42 - - (4,903.83) (59.76) (194.65) 1,124.17 230,302.35 344.49 256350005 LC-Project Fund-Toll 265819WAC7 NC EST MUNI PWR-REF- 35,404.60 - - - - (8.09) 19.29 35,415.80 118.79 256350005 LC-Project Fund-Toll 265819WAC7 NC EST MUNI PWR-REF- 125,000.00 - - - - - 1,485.00 126,485.00 424.25 256350005 LC-Project Fund-Toll 229250BU74 Encana Corporation1,399,972.00 - - (1,400,000.00) - - 135.33 (107.33) - - 256350005 LC-Project Fund-Toll 225600WAD2 DNB BOLIGKREDITT AS400,196.00 - (400,382.00) - - 746.02 23.12 (583.13) - - 256350005 LC-Project Fund-Toll 2084670BD9 BERKSHIRE HATHAWAY INC304,680.00 - (304,464.00) - - (141.41) (373.50) 298.91 - - 256350005 LC-Project Fund-Toll 22925A3UA4 Enbridge Energy Partners, L.P. 1,399,944.00 - - (1,400,000.00) - - 220.50 (164.50) - - 256350005 LC-Project Fund-Toll 206050TLY6 BANK OF AMERICA NA 299,553.00 - - - - - 93.08 116.92 299,763.00 68.75 256350005 LC-Project Fund-Toll 240434CAA3 HSBC USA INC 299,856.00 - (299,727.00) - - (355.44) (6.05) 232.50 - - 256350005 LC-Project Fund-Toll 2233851BF0 DAIMLER FINANCE NA LLC 299,574.00 - - - - - 88.11 (3,502.11) 296,160.00 687.50 256350005 LC-Project Fund-Toll 2180848HP1 CLARK CNTY-C-BABS - 126,764.40 - - - - (771.63) 52.83 126,045.60 1,290.00 256350005 LC-Project Fund-Toll 241283LAB1 HARLEY-DAVIDSON FINL SE255,602.50 - - - - - (923.59) 203.59 254,882.50 300.00 256350005 LC-Project Fund-Toll 269371RM52 PACCAR FINANCIAL CORP 299,529.00 - (299,034.00) - - (26.68) 13.34 (481.66) - - 256350005 LC-Project Fund-Toll 2166764AV2 CHEVRON CORP 299,874.00 - (299,523.00) - - 294.32 28.61 (673.92) - - 256350005 LC-Project Fund-Toll 23133EECD0 FEDERAL FARM CREDIT BAN900,711.00 - - - - - (69.43) (488.57) 900,153.00 67.65 256350005 LC-Project Fund-Toll 236225FLA5 G2 83020 - 157,467.20 - - (2,207.10) (77.77) (28.26) 349.98 155,504.05 218.59 256350005 LC-Project Fund-Toll 291159HHD5 US BANCORP303,615.00 - - - - - (444.46) (485.54) 302,685.00 1,870.00 256350005 LC-Project Fund-Toll 246623EKD0 JPMORGAN CHASE & CO 298,947.00 - - - - - 64.32 307.68 299,319.00 425.00 256350005 LC-Project Fund-Toll 289837LAA3 PRINCETON UNIVERSITY 194,600.00 - - - - - (1,245.09) 522.34 193,877.25 721.88 256350005 LC-Project Fund-Toll 289837LAA3 PRINCETON UNIVERSITY 494,840.00 - - - - - (3,356.52) 1,518.67 493,002.15 1,835.63 256350005 LC-Project Fund-Toll 23136A8G38 FNA 2012-M13 ASQ2 - 163,538.84 - - (1,273.87) (5.25) (98.84) 165.85 162,326.74 167.73 256350005 LC-Project Fund-Toll 220030NAP6 COMCAST CORP 324,504.00 - - - - - (4,018.56) 19.56 320,505.00 4,116.67 256350005 LC-Project Fund-Toll 258772PAC2 MBART 2015-1 A2B- 390,045.70 - - - - (1.51) (438.09) 389,606.10 82.60 256350005 LC-Project Fund-Toll 259217GBH1 MET LIFE GLOB FUNDING I300,678.00 - (300,297.00) - - (163.34) (31.82) (185.84) - - 256350005 LC-Project Fund-Toll 2912828J84 US TREASURY N/B- 1,187,015.63 - - - - 588.12 16,020.25 1,203,624.00 45.08 256350005 LC-Project Fund-Toll 2912828J84 US TREASURY N/B594,096.00 - - - - - 451.55 7,264.45 601,812.00 22.54 256350005 LC-Project Fund-Toll 269349LAP3 PNC BANK NA300,387.00 - - - - - (39.88) 114.88 300,462.00 1,437.50 256350005 LC-Project Fund-Toll 23138L1TX7 FN AM1465316,147.06 - - - (1,697.59) (7.31) (177.68) 1,359.99 315,624.47 431.07 256350005 LC-Project Fund-Toll 297689RAE4 WI MFH VAR-TXB-SER B- 350,000.00 - - - - - - 350,000.00 46.03 256350005 LC-Project Fund-Toll 23133XY2H7 FHLB 5K-2017 1- 332,848.22 - - (22,516.13) (597.89) (583.97) (5.47) 309,144.76 267.18 256350005 LC-Project Fund-Toll 259217GBE8 MET LIFE GLOB FUNDING I- 300,615.00 - - - - (49.73) (613.27) 299,952.00 458.89 256350005 LC-Project Fund-Toll 202582JGW4 AMXCA 2014-4 A- 365,855.47 (366,354.49) - - 519.41 (20.39) - - - 256350005 LC-Project Fund-Toll 23137AHXC7 FHR 3952 MK- 179,237.27 - - (89,845.01) (396.06) (175.38) (70.18) 88,750.64 221.53 256350005 LC-Project Fund-Toll 23137AHXC7 FHR 3952 MK178,981.18 (179,237.27) - - - - (172.74) 428.83 - - 256350005 LC-Project Fund-Toll 20258M0DR7 AMERICAN EXPRESS CREDIT300,978.00 - (300,204.00) - - (434.83) (27.42) (311.75) - - 256350005 LC-Project Fund-Toll 236225EUY6 G2 82398 - 140,575.29 - - - - (5.80) 4,492.23 145,061.72 284.77 256350005 LC-Project Fund-Toll 260689LAC9 MMAF 2013-AA A3 - - - - - - - - - - 256350005 LC-Project Fund-Toll 260689LAC9 MMAF 2013-AA A3 - 173,604.95 - - (7,524.18) (3.30) (6.40) (11.88) 166,059.19 104.49 256350005 LC-Project Fund-Toll 290261XHH8 UBS AG STAMFORD CT249,627.50 - - - - - 59.30 185.70 249,872.50 62.50 256350005 LC-Project Fund-Toll 2037833AM2 APPLE INC 300,897.00 - - - - - (125.65) 383.65 301,155.00 1,268.75 256350005 LC-Project Fund-Toll 231394GH22 FHR 2649 KA - 166,425.24 - - (15,199.99) (560.91) (156.84) 51.17 150,558.66 545.08 256350005 LC-Project Fund-Toll 2532457BK3 ELI LILLY & CO 299,175.00 - - - - - 100.24 547.76 299,823.00 312.50 256350005 LC-Project Fund-Toll 2209111ET6 CONS EDISON CO OF NY245,014.00 - - - - - (2,288.50) 242.50 242,968.00 6,435.00 256350005 LC-Project Fund-Toll 231677QAV1 FIFTH THIRD BANK248,160.00 - (247,955.00) - - (139.46) 29.60 (95.13) - - Page 15 of 3367 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350005 LC-Project Fund-Toll 2912828K41 US TREASURY FRN - 875,023.15 (274,803.93) - - (202.75) (2.07) (434.40) 599,580.00 148.90 256350005 LC-Project Fund-Toll 2912828K41 US TREASURY FRN - 350,003.10 (349,750.46) - - (252.37) (0.27) - - - 256350005 LC-Project Fund-Toll 230231GAL6 EXXON MOBIL CORPORATIO299,757.00 - - - - - 38.93 912.07 300,708.00 271.88 256350005 LC-Project Fund-Toll 2063679ZT4 BANK OF MONTREAL 304,758.00 - - - - - (713.70) 77.70 304,122.00 991.25 256350005 LC-Project Fund-Toll 221686CAD2 RABOBANK NEDERLAND 309,879.00 - - - - - (1,625.36) 68.36 308,322.00 2,025.00 256350005 LC-Project Fund-Toll 205522RCR7 BACCT 2014-A2 A 124,862.50 - - - - - 13.32 51.68 124,927.50 26.48 256350005 LC-Project Fund-Toll 222546QAV9 CREDIT SUISSE NEW YORK 297,909.00 - (298,107.00) - - 536.90 37.55 (376.45) - - 256350005 LC-Project Fund-Toll 2912828VK3 US TREASURY N/B - 182,088.28 - - - - (41.87) 381.79 182,428.20 625.48 256350005 LC-Project Fund-Toll 2912828VK3 US TREASURY N/B - 303,222.66 - - - - (222.34) 1,046.68 304,047.00 1,042.46 256350005 LC-Project Fund-Toll 2912828VK3 US TREASURY N/B - 227,355.47 - - - - (162.49) 842.27 228,035.25 781.84 256350005 LC-Project Fund-Toll 2912828VK3 US TREASURY N/B- 303,199.22 - - - - (220.71) 1,068.49 304,047.00 1,042.46 256350005 LC-Project Fund-Toll 2912828VK3 US TREASURY N/B- 303,199.22 - - - - (220.71) 1,068.49 304,047.00 1,042.46 256350005 LC-Project Fund-Toll 262888YAA0NGN 2011-R1 1A- 243,407.14 - - (8,029.70) (38.04) (54.01) 35.88 235,321.27 101.93 256350005 LC-Project Fund-Toll 202665WAT8 AMERICAN HONDA FINANCE300,030.00 - (299,265.00) - - (616.24) 2.12 (150.88) - - 256350005 LC-Project Fund-Toll 2064159CQ7 BANK OF NOVA SCOTIA301,902.00 - - - - - (472.37) 157.37 301,587.00 870.83 256350005 LC-Project Fund-Toll 26174467U7 MORGAN STANLEY 302,028.00 - (302,085.00) - - 547.65 (23.33) (467.33) - - 256350005 LC-Project Fund-Toll 249130TRY4 KY HSG CORP-A-TXBL 274,579.25 - - - - - 59.63 (26.63) 274,612.25 644.19 256350005 LC-Project Fund-Toll 268268UU21 ONEOK Partners, L.P. 1,400,000.00 - - (1,400,000.00) - (0.00) 26.06 (26.05) - - 256350005 LC-Project Fund-Toll 20258M0DN6 AMERICAN EXPRESS CREDIT- 198,994.00 - - - - 9.75 (113.75) 198,890.00 76.92 256350005 LC-Project Fund-Toll 291324PCF7 UNITEDHEALTH GROUP INC 299,463.00 - - - - - (53.92) 281.92 299,691.00 1,236.67 256350005 LC-Project Fund-Toll 213063A5D2CA TXB-VAR PURP 3327,609.45 - - - - - (4,008.82) 58.72 323,659.35 9,371.25 34,879,106.34 26,576,819.32 (18,124,829.63) (10,150,000.00) (320,186.89) (2,619.55) (32,661.97) 33,444.65 32,859,072.27 95,933.26 256350022 LC-Sr Lien Ob Fund-1 Interest 9AMMF05B2 U.S. Bank Money Market Accoun134,184.17 1,587,489.55 (1,607,778.41) - - - - - 113,895.31 - 256350022 LC-Sr Lien Ob Fund-1 Interest38144LAB6 GOLDMAN SACHS GROUP IN328,428.00 - - - - - (1,361.83) (1,044.17) 326,022.00 1,562.50 256350022 LC-Sr Lien Ob Fund-1 Interest767201AM8 RIO TINTO FIN USA LTD 610,470.00 - - (610,812.00) - 5,519.08 (166.79) (5,010.29) - - 256350022 LC-Sr Lien Ob Fund-1 Interest38143USC6 GOLDMAN SACHS GROUP IN609,720.00 - - - - - (2,768.23) (1,203.77) 605,748.00 3,262.50 256350022 LC-Sr Lien Ob Fund-1 Interest31393EXC8 FNR 2003-88 TH 40,393.80 - - - (5,271.45) (193.19) (97.42) (80.78) 34,750.96 125.65 256350022 LC-Sr Lien Ob Fund-1 Interest05565QCC0 BP CAPITAL MARKETS PLC 299,796.00 - - - - - 450.15 (696.15) 299,550.00 1,661.46 256350022 LC-Sr Lien Ob Fund-1 Interest166764AE0 CHEVRON CORP301,788.00 - - - - - (156.00) 696.00 302,328.00 1,388.72 256350022 LC-Sr Lien Ob Fund-1 Interest36962G3H5 GENERAL ELEC CAP CORP326,679.00 - (327,222.00) - - 7,894.71 (2,350.50) (5,001.21) - - 256350022 LC-Sr Lien Ob Fund-1 Interest44890NX70 Hyundai Capital America- 399,810.89 - - - - 158.44 18.67 399,988.00 - 256350022 LC-Sr Lien Ob Fund-1 Interest912828RX0 US TREASURY N/B955,567.00 - - - - - 365.24 (1,172.74) 954,759.50 2,100.71 256350022 LC-Sr Lien Ob Fund-1 Interest89236TAY1 TOYOTA MOTOR CREDIT CO504,615.00 - - - - - (428.33) 1,053.33 505,240.00 4,361.11 256350022 LC-Sr Lien Ob Fund-1 Interest27743KY20 Eastman Chemical Company - 499,787.50 - - - - 12.50 105.00 499,905.00 - 256350022 LC-Sr Lien Ob Fund-1 Interest3137B03W2 FHMS K502 A2 554,246.00 - - - - - (600.45) 528.95 554,174.50 653.58 256350022 LC-Sr Lien Ob Fund-1 Interest912828UA6 US TREASURY N/B 1,244,625.00 - - - - - 2,019.61 1,080.39 1,247,725.00 2,625.51 256350022 LC-Sr Lien Ob Fund-1 Interest31402RBG3 FN 735439 6,086.48 - - - (987.09) (40.55) (15.67) 1.10 5,044.27 24.30 256350022 LC-Sr Lien Ob Fund-1 Interest31402RBG3 FN 735439 78,211.31 - - - (12,684.16) (574.49) (219.13) 85.35 64,818.88 312.24 256350022 LC-Sr Lien Ob Fund-1 Interest30231GAL6 EXXON MOBIL CORPORATIO419,659.80 - - - - - 44.56 1,286.84 420,991.20 380.63 256350022 LC-Sr Lien Ob Fund-1 Interest912828K41 US TREASURY FRN - 200,001.77 - - - - (0.17) (141.60) 199,860.00 49.63 256350022 LC-Sr Lien Ob Fund-1 Interest31385JLF3 FN 545826 167,601.25 - - - (30,924.75) (1,147.41) (526.26) 112.40 135,115.24 656.01 256350022 LC-Sr Lien Ob Fund-1 Interest94974BGF1 WELLS FARGO & COMPANY990,450.00 - - - - - 443.49 6,656.51 997,550.00 3,643.06 256350022 LC-Sr Lien Ob Fund-1 Interest3136A8G38 FNA 2012-M13 ASQ2 758,964.04 - - - (39,809.94) 351.71 606.69 (1,236.95) 718,875.55 742.79 256350022 LC-Sr Lien Ob Fund-1 Interest92939BXU7 Wells Fargo Commercial Mortgag- 699,746.25 - - - - 17.50 145.25 699,909.00 - 256350022 LC-Sr Lien Ob Fund-1 Interest6174467U7 MORGAN STANLEY 503,380.00 - (504,170.00) - - 368.68 (133.43) 554.75 - - 256350022 LC-Sr Lien Ob Fund-1 Interest59217GAC3 MET LIFE GLOB FUNDING I 743,441.00 - - (740,000.00) - - (2,915.28) (525.72) - - 256350022 LC-Sr Lien Ob Fund-1 Interest46625HJL5 JPMORGAN CHASE & CO 496,105.00 - - - - - 205.59 594.41 496,905.00 3,069.44 256350022 LC-Sr Lien Ob Fund-1 Interest63307EAB3 NATIONAL BANK OF CANAD918,396.00 - - - - - (3,291.59) (2,711.41) 912,393.00 8,910.00 256350022 LC-Sr Lien Ob Fund-1 Interest912828UZ1 US TREASURY N/B - 693,656.25 - - - - 476.44 2,276.31 696,409.00 1,830.84 256350022 LC-Sr Lien Ob Fund-1 Interest891145TN4 TORONTO-DOMINION BANK 1,009,200.00 - - - - - (1,411.87) (1,118.13) 1,006,670.00 750.00 256350022 LC-Sr Lien Ob Fund-1 Interest48121CYK6 JP MORGAN CHASE BANK NA327,105.00 - - - - - (2,454.16) (467.84) 324,183.00 9,000.00 256350022 LC-Sr Lien Ob Fund-1 Interest407288YD5 HAMILTON SWR-B-REF 630,718.20 - - - - - - (403.20) 630,315.00 1,686.30 256350022 LC-Sr Lien Ob Fund-1 Interest912828J84 US TREASURY N/B 544,588.00 - - - - - 417.16 6,655.84 551,661.00 20.66 256350022 LC-Sr Lien Ob Fund-1 Interest912828J84 US TREASURY N/B 396,064.00 - - - - - 270.90 4,873.10 401,208.00 15.03 256350022 LC-Sr Lien Ob Fund-1 Interest02580ECC5 AMERICAN EXPRESS BK FSB273,307.50 - - - - - (2,271.85) (23.15) 271,012.50 750.00 256350022 LC-Sr Lien Ob Fund-1 Interest36162WAC1 GEET 2013-1 A3 408,247.70 - - - (244,518.51) 79.39 61.44 (402.02) 163,468.00 21.94 256350022 LC-Sr Lien Ob Fund-1 Interest233851AT1 DAIMLER FINANCE NA LLC 501,470.00 - - - - - 203.54 (1,103.54) 500,570.00 1,388.89 256350022 LC-Sr Lien Ob Fund-1 Interest3136A4M89 FNA 2012-M3 2A1 183,627.98 - - - (4,898.40) (17.45) (60.71) 737.87 179,389.28 283.73 256350022 LC-Sr Lien Ob Fund-1 Interest3137ASNH3 FHMS K019 A1 399,174.99 - - - (11,969.57) 237.68 311.83 2,507.55 390,262.48 473.99 256350022 LC-Sr Lien Ob Fund-1 Interest3130A3BD5 FEDERAL HOME LOAN BANK- 200,446.00 - - - - (323.19) (2.81) 200,120.00 1,341.67 256350022 LC-Sr Lien Ob Fund-1 Interest235219JS2 DALLAS-B-REF-TXBL 658,950.50 - - - - - - (702.00) 658,248.50 1,319.75 256350022 LC-Sr Lien Ob Fund-1 Interest31393V2T7 FHR 2627 GY 209,034.83 - - - (28,371.62) (1,045.61) (459.96) (997.74) 178,159.90 646.28 256350022 LC-Sr Lien Ob Fund-1 Interest78011DAC8 ROYAL BANK OF CANADA 998,440.00 - - - - - (113.96) 1,763.96 1,000,090.00 400.00 256350022 LC-Sr Lien Ob Fund-1 Interest3137ANLP8FHMS K501 A2938,184.00 - - - (2,754.15) (6.68) (830.51) (1,597.88) 932,994.78 1,278.83 18,470,919.54 4,280,938.21 (2,439,170.41) (1,350,812.00) (382,189.64) 11,425.84 (16,892.18) 6,090.49 18,580,309.85 56,737.74 Page 16 of 3368 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015256350023 LC-Sr Lien Reserve Fund-1 9AMMF05B2 U.S. Bank Money Market Accoun91,980.19 379,374.96 (373,499.75) - - - - - 97,855.40 - 256350023 LC-Sr Lien Reserve Fund-1912828B58 US TREASURY N/B 508,280.00 - - - - - (529.53) 8,224.53 515,975.00 1,790.08 256350023 LC-Sr Lien Reserve Fund-13137AJMF8 FHMS K016 A2 - 31,038.28 - - - - (24.34) 542.46 31,556.40 74.19 256350023 LC-Sr Lien Reserve Fund-13135G0D75 FANNIE MAE 592,884.00 - - - - - 307.59 6,808.41 600,000.00 2,475.00 256350023 LC-Sr Lien Reserve Fund-138376GB33 GNR 2011-6 BA 359,863.00 - - - - - (793.47) 93.47 359,163.00 1,020.83 256350023 LC-Sr Lien Reserve Fund-138376G5B2 GNR 2011-120 AB 30,644.90 - - - (30,571.84) (101.43) (8.43) 36.80 - - 256350023 LC-Sr Lien Reserve Fund-13137A7JU5 FHMS K701 A2 343,190.25 - - - - - (1,595.59) 233.84 341,828.50 1,051.38 256350023 LC-Sr Lien Reserve Fund-138378KRS0 GNR 2013-78 AG 430,290.00 - - - - - 530.65 9,360.35 440,181.00 895.72 256350023 LC-Sr Lien Reserve Fund-138378KWU9 GNR 2013-96 A69,944.36 - - - (480.53) 11.79 115.98 169.72 69,761.33 82.71 256350023 LC-Sr Lien Reserve Fund-13138EJ6V5 FN AL2683142,119.19 - - - (9,192.22) (514.73) 19.99 (660.72) 131,771.51 412.56 256350023 LC-Sr Lien Reserve Fund-13137B03W2 FHMS K502 A245,347.40 - - - - - (0.51) (5.34) 45,341.55 53.48 256350023 LC-Sr Lien Reserve Fund-1912828VB3 US TREASURY N/B3,385,445.00 - - - - - 5,813.66 78,921.34 3,470,180.00 23,135.19 256350023 LC-Sr Lien Reserve Fund-138377UN20 GNR 2011-62 PA- - - - - - - - - - 256350023 LC-Sr Lien Reserve Fund-13137EADB2 FREDDIE MAC556,858.50 - - - - - 572.82 9,019.18 566,450.50 2,830.21 256350023 LC-Sr Lien Reserve Fund-138378B7E3 GNR 2013-33 AC227,972.61 - - - (2,914.73) 112.11 332.59 1,764.23 227,266.81 335.75 256350023 LC-Sr Lien Reserve Fund-138377RVK8 GNR 2010-166 GP128,532.28 - - - (5,731.66) (102.02) (32.10) (255.23) 122,411.27 295.79 256350023 LC-Sr Lien Reserve Fund-138377RVK8 GNR 2010-166 GP- 74,696.21 - - (1,136.21) (40.72) (17.95) (54.57) 73,446.76 177.48 256350023 LC-Sr Lien Reserve Fund-13136A7MJ8 FNA 2012-M8 ASQ2145,190.42 - - - (6,887.69) 66.41 102.85 162.34 138,634.33 174.01 256350023 LC-Sr Lien Reserve Fund-138378KSL4 GNR 2013-74 AL189,486.00 - - - - - 149.47 6,306.53 195,942.00 464.11 256350023 LC-Sr Lien Reserve Fund-138378KSL4 GNR 2013-74 AL213,171.75 - - - - - 53.05 7,209.95 220,434.75 522.13 256350023 LC-Sr Lien Reserve Fund-1912828VK3 US TREASURY N/B1,592,104.50 - - - - - 366.10 3,776.15 1,596,246.75 5,472.91 256350023 LC-Sr Lien Reserve Fund-13136A72D3 FNA 2012-M9 A2396,228.45 - - - - - 510.94 5,015.11 401,754.50 816.99 256350023 LC-Sr Lien Reserve Fund-138378B6A2 GNR 2013-12 AB138,050.12 - - - (4,919.60) 143.68 93.87 1,354.47 134,722.53 208.81 256350023 LC-Sr Lien Reserve Fund-13137AQT24 FHMS K708 A2173,211.30 - - - - - (68.58) 522.48 173,665.20 301.75 256350023 LC-Sr Lien Reserve Fund-138376WA62 GNR 2010-15 PD186,284.73 - - - (19,507.69) (964.54) 53.83 (645.02) 165,221.31 520.21 256350023 LC-Sr Lien Reserve Fund-13128MMAK9 FG G18009168,262.56 - - - (15,602.58) (703.29) (290.70) (784.00) 150,881.99 595.30 256350023 LC-Sr Lien Reserve Fund-138377DPX8 GNR 2010-101 NC40,498.39 - - - (9,602.61) (233.55) (150.43) 264.59 30,776.39 63.58 256350023 LC-Sr Lien Reserve Fund-131395EZP5 FHR 2835 MD117,175.79 - - - (14,775.27) (607.50) (200.35) (778.79) 100,813.89 364.92 256350023 LC-Sr Lien Reserve Fund-13136AEYG6 FNA 2013-M9 ASQ2154,049.18 - - - (6,952.45) (33.23) (40.11) 717.74 147,741.13 220.99 256350023 LC-Sr Lien Reserve Fund-131394DVM9 FNR 2005-43 PB 200,787.57 - - - (21,558.26) (936.60) (506.39) (53.10) 177,733.22 704.08 256350023 LC-Sr Lien Reserve Fund-13137AEV77 FHMS K703 A2 260,141.42 - - - - - (404.73) (69.66) 259,667.03 564.54 256350023 LC-Sr Lien Reserve Fund-138378KXW4 GNR 2013-105 A 197,968.81 - - - (1,829.48) 7.34 47.16 382.66 196,576.49 280.87 256350023 LC-Sr Lien Reserve Fund-138377JZ89 GNR 2010-117 GK 177,020.06 - - - (15,478.38) (390.55) 233.62 (499.20) 160,885.54 450.21 256350023 LC-Sr Lien Reserve Fund-131413XVG5 FN 958815 215,846.00 - - - - - (952.97) (683.03) 214,210.00 751.00 256350023 LC-Sr Lien Reserve Fund-138379KDN5 GNR 2015-29 AD - 191,373.58 - - (243.02) 6.19 64.99 2,962.95 194,164.69 342.61 256350023 LC-Sr Lien Reserve Fund-13136A4M48 FNA 2012-M3 1A1 383,349.06 - - - (11,505.58) (17.94) (53.21) 3,000.69 374,773.02 640.23 256350023 LC-Sr Lien Reserve Fund-1912828UF5 US TREASURY N/B 171,923.50 - - - - - 119.47 1,949.03 173,992.00 497.54 256350023 LC-Sr Lien Reserve Fund-1912828UF5 US TREASURY N/B93,329.90 - - - - - 121.03 1,001.87 94,452.80 270.09 256350023 LC-Sr Lien Reserve Fund-1912828UF5 US TREASURY N/B225,956.60 - - - - - 101.11 2,617.49 228,675.20 653.91 256350023 LC-Sr Lien Reserve Fund-131392JJ83 FNR 2003-17 HC31,130.34 - - - (4,396.14) (141.11) (78.42) (114.67) 26,400.00 106.66 256350023 LC-Sr Lien Reserve Fund-131381PEB0 FN 466430280,279.90 - - - - - (592.75) 3,963.55 283,650.70 744.21 256350023 LC-Sr Lien Reserve Fund-13137AUPE3 FHMS K021 A2234,565.25 - - - - - 372.41 3,208.99 238,146.65 469.22 256350023 LC-Sr Lien Reserve Fund-138378CRT6 GNR 2012-13 EG125,770.37 - - - (6,472.22) 209.28 21.96 1,025.74 120,555.13 201.85 256350023 LC-Sr Lien Reserve Fund-138378XP62 GNR 2014-166 PL477,484.34 - - - (7,430.44) (91.87) (90.49) 9,266.09 479,137.63 974.67 256350023 LC-Sr Lien Reserve Fund-13137A7E22 FHR 3804 DA245,154.50 - - - (26,334.76) (582.52) (173.76) (1,023.87) 217,039.59 611.91 256350023 LC-Sr Lien Reserve Fund-138376T5Z1 GNR 2010-4 PD177,965.50 - - - (7,650.11) (327.78) (162.59) (149.92) 169,675.10 408.36 256350023 LC-Sr Lien Reserve Fund-138377RSZ9 GNR 2010-162 PQ83,718.22 - - - (9,216.07) (551.31) 12.62 (320.00) 73,643.46 262.78 256350023 LC-Sr Lien Reserve Fund-13137EADR7 FREDDIE MAC468,250.25 - - - - - 169.47 6,148.03 474,567.75 2,721.35 256350023 LC-Sr Lien Reserve Fund-13137EACA5 FREDDIE MAC869,144.00 - - - - - (3,261.80) 4,933.80 870,816.00 333.33 256350023 LC-Sr Lien Reserve Fund-1912828KQ2 US TREASURY N/B533,555.00 - - - - - (1,680.48) 3,620.48 535,495.00 5,901.83 256350023 LC-Sr Lien Reserve Fund-131404WTT3 FN 78096289,667.66 - - - (8,377.58) (660.36) (413.90) 403.03 80,618.84 291.40 256350023 LC-Sr Lien Reserve Fund-138378BX20 GNR 2012-132 AB70,250.39 - - - (1,030.17) 22.66 109.18 264.63 69,616.68 73.25 256350023 LC-Sr Lien Reserve Fund-131417YKF3 FN MA0293171,618.79 - - - (11,272.76) (605.38) 309.84 579.88 160,630.37 552.61 256350023 LC-Sr Lien Reserve Fund-131385XBG1 FN 55543920,176.04 - - - (3,670.36) (127.76) (60.64) 27.55 16,344.83 79.37 256350023 LC-Sr Lien Reserve Fund-131416YXJ2 FN AB338069,592.03 - - - (3,211.27) (130.48) (28.77) 175.35 66,396.86 182.60 256350023 LC-Sr Lien Reserve Fund-1912833KR0 STRIPS369,489.20 - - - - - 1,368.08 535.72 371,393.00 - 256350023 LC-Sr Lien Reserve Fund-13137ASNH3 FHMS K019 A1399,174.99 - - - (11,969.57) 203.03 263.63 2,590.41 390,262.48 473.99 256350023 LC-Sr Lien Reserve Fund-13137B6ZL8 FHMS K714 A150,989.32 - - - (2,207.79) (30.65) (45.51) 150.72 48,856.09 83.03 256350023 LC-Sr Lien Reserve Fund-131418AFW3 FN MA1080250,972.64 - - - (17,935.12) (461.49) (128.18) 1,140.41 233,588.26 558.17 256350023 LC-Sr Lien Reserve Fund-138379C2M7 GNR 2014-96 WA53,911.42 - - - (2,264.71) (106.43) 6.40 273.91 51,820.59 69.91 256350023 LC-Sr Lien Reserve Fund-138378B7F0 GNR 2013-33 B187,144.00 - - - - - 218.56 3,855.44 191,218.00 378.83 256350023 LC-Sr Lien Reserve Fund-138378B7F0 GNR 2013-33 B233,930.00 - - - - - 641.27 4,451.23 239,022.50 473.54 256350023 LC-Sr Lien Reserve Fund-138378TAF7 GNR 2013-71 GA252,491.97 - - - (9,535.60) 3.47 (13.25) 1,194.87 244,141.46 494.43 256350023 LC-Sr Lien Reserve Fund-1912828TJ9 US TREASURY N/B479,843.10 - - - - - 875.31 10,093.89 490,812.30 1,027.33 256350023 LC-Sr Lien Reserve Fund-13130A6G92FEDERAL HOME LOAN BANK- 100,004.80 - - - - (0.02) (4.78) 100,000.00 6.81 18,579,656.99 776,487.83 (373,499.75) - (311,864.47) (7,677.27) 1,679.57 204,220.20 18,869,003.09 66,992.60 Page 17 of 3369 Source Account Account Identifier DescriptionBeginning Base Market Value Base Purchases Base SalesBase Maturities and Redemptions Base PaydownsNet Total Realized Gain/LossBase Amortization/AccretionBase Change In Net Unrealized Gain/LossEnding Base Market ValueEnding Accrued Income BalanceSTAMP Portfolio Transaction Report by AccountQuarter ended September 30, 2015240,176,340.55 372,576,626.31 (161,966,606.35) (226,100,812.00) (3,399,497.18) (25,905.19) (5,825.90) 317,218.34 221,571,538.57 476,947.45 Page 18 of 3370 STAMP Portfolio Summary of Investments for quarter ended September 30, 2015Asset ClassSecurity TypeMarket SectorCredit RatingIndustry Group*Negative cash reflects securities in transit at month endATTACHMENT 571 STAMP PortfolioToll Revenue Project Senior Lien Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket SectorATTACHMENT 672 STAMP PortfolioToll Revenue Project Sales Tax Revenue Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket SectorATTACHMENT 773 STAMP PortfolioSeries A & Series B Reserve Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket SectorATTACHMENT 874 STAMP PortfolioToll Revenue Project Capitalized Interest Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket SectorATTACHMENT 975 STAMP PortfolioSales Tax Revenue Capitalized Interest Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket Sector*Negative cash reflects securities in transit at month endATTACHMENT 1076 STAMP PortfolioSales Tax Equity Fund Summary of Investments for quarter ended September 30, 2015Credit RatingIndustry GroupAsset ClassSecurity TypeMarket Sector*Negative cash reflects securities in transit at month endATTACHMENT 1177 Account Number: 001050990415 Name: RIVERSIDE COUNTY TRANS COMMCUSIPSecurity Type Category Issuer Final Maturity Trade DateNext Call Date Original CostBase Market ValueUnrealized Gain/LossAccrued Income Coupon YieldCredit Rating3130A62S5 Agencies F H L B 0.750% 8/28/1708/28/2017 07/24/20151,027,692.80 1,030,896.10 3,203.30 708.13 0.630 0.748 AA+3133EEWS5 Agencies F F C B DEB 0.23855% 1/02/1801/02/2018 04/02/2015699,961.01 699,762.00 (199.01) 128.85 0.750 0.239 AA+3134G3N55 Agencies F H L M C M T N 1.100% 10/05/1710/05/2017 10/05/2012 01/05/2016 499,950.00 500,050.00 100.00 2,688.89 0.240 1.100 AA+3135G0E58 Agencies F N M A DEB 1.125% 10/19/1810/19/2018 09/01/2015529,141.40 532,210.10 3,068.70 496.88 1.100 1.118 AA+3136AMTM1 Agencies F N M A GTD REMIC 0.3845% 9/25/18 09/25/2018 03/01/2015467,256.36 467,707.98 451.62 32.24 1.130 0.414 N/A31846V203 Agencies FIRST AMER GOVT OBLIG FUND CL Y623,617.87 623,617.87 - 0.53 0.750 0.006161571GS7 Asset-Backed CHASE ISSUANCE TRU 0.52655% 2/18/20 02/18/2020 03/13/2015750,182.33 749,407.50 (774.83) 166.78 0.530 0.527 AAA17305EFN0 Asset-Backed CITIBANK CREDIT CARD 1.020% 2/22/19 02/22/2019 03/05/2014698,523.44 700,721.00 2,197.56 773.50 1.020 1.018 AAA36159LCN4 Asset-Backed GE DEALER FLOORPLA 0.69627% 10/20/19 10/20/2019 10/21/2014750,482.08 746,130.00 (4,352.08) 159.56 0.670 0.700 N/A47787UAB9 Asset-Backed JOHN DEERE OWNER 0.870% 2/15/18 02/15/2018 03/11/2015489,968.44 490,009.80 41.36 189.47 0.870 0.870 N/A47787VAC5 Asset-Backed JOHN DEERE OWNER 0.920% 4/16/18 04/16/2018 04/09/2014749,794.92 749,842.50 47.58 306.67 0.920 0.920 N/A89231TAD2 Asset-Backed TOYOTA AUTO 1.440% 6/17/19 06/17/2019 08/26/2015299,956.20 301,212.00 1,255.80 192.00 1.440 1.434 AAA89237CAD3 Asset-Backed TOYOTA AUTO RECEIV 1.270% 5/15/19 05/15/2019 06/17/2015499,972.95 500,565.00 592.05 282.22 1.270 1.266 AAA92867VAB6 Asset-Backed VOLKSWAGEN AUTO 0.870% 6/20/17 06/20/2017 03/05/2015226,995.69 227,173.91 178.22 60.40 0.870 0.870 N/A037833AG5 CreditAPPLE INC 0.5405% 5/03/1805/03/2018 05/03/2013250,639.21 250,117.50 (521.71) 221.45 0.550 0.540 AA+037833AH3 CreditAPPLE INC 0.450% 5/03/1605/03/2016 05/03/2013500,184.93 500,135.00 (49.93) 925.00 0.450 0.450 AA+037833BB5 CreditAPPLE INC 0.900% 5/12/1705/12/2017 05/13/2015119,917.20 120,230.40 313.20 414.00 0.900 0.897 AA+06406HCK3 CreditBANK OF NY MTN 0.73488% 3/06/18 03/06/2018 03/06/2013751,162.52 748,687.50 (2,475.02) 382.75 0.770 0.737 A+084664CD1 CreditBERKSHIRE HATHAWAY 0.59902% 1/12/18 01/12/2018 01/15/2015250,577.99 248,985.00 (1,592.99) 323.50 0.590 0.601 AA084670BH0 CreditBERKSHIRE HATHAWAY 1.550% 2/09/18 02/09/2018 02/11/2013503,754.65 504,060.00 305.35 1,119.44 1.550 1.535 AA166764AK6 CreditCHEVRON CORP 0.45355% 11/15/17 11/15/2017 11/18/2014250,128.40 249,237.50 (890.90) 141.73 0.490 0.455 AA166764AV2 CreditCHEVRON CORP 1.365% 3/02/18 03/02/2018 03/03/2015499,970.00 500,455.00 485.00 549.79 1.370 1.360 AA17275RAU6 CreditCISCO SYSTEMS INC 1.650% 6/15/18 06/15/2018 06/17/2015399,932.00 402,916.00 2,984.00 1,906.67 1.650 1.634 AA-19416QDU1 CreditCOLGATE PALM MTN 2.625% 5/01/17 05/01/2017 05/04/2011522,115.03 519,852.05 (2,262.98) 5,523.44 2.630 2.548 AA-Payden & Rygel Operating Portfolio by Investment Category for Quarter ended September 30, 2015,,(, ),263901AE0 CreditDUKE ENERGY INDIAN 0.63285% 7/11/16 07/11/2016 07/11/2013750,769.86 749,992.50 (777.36) 1,054.76 0.640 0.633A30231GAL6 CreditEXXON MOBIL 1.305% 3/06/1803/06/2018 03/06/2015460,000.00 461,085.60 1,085.60 416.88 0.640 1.295 AAA3130A5EP0 CreditF H L B 0.625% 5/30/1705/30/2017 05/15/2015999,170.00 1,000,100.00 930.00 2,100.69 1.310 0.623 AA+36962G2G8 CreditGEN ELEC CAP CRP MTN 5.400% 2/15/17 02/15/2017 02/13/2007110,823.50 109,978.96 (844.54) 717.60 5.400 5.112 AA+36962G3H5 CreditGEN ELEC CAP CRP MTN 5.625% 9/15/17 09/15/2017 09/24/2007543,240.96 544,615.00 1,374.04 1,250.00 5.630 5.195 AA+459200HZ7 CreditIBM CORP 1.125% 2/06/1802/06/2018 02/06/2015497,700.00 498,790.00 1,090.00 859.38 1.130 1.123 AA-48125LRD6 CreditJP MORGAN CHASE MTN 0.6857% 6/14/17 06/14/2017 06/19/2015750,000.00 748,297.50 (1,702.50) 242.85 0.740 0.687 A+58933YAH8 CreditMERCK CO INC 0.6162% 5/18/18 05/18/2018 05/20/2013752,422.00 751,117.50 (1,304.50) 564.85 0.680 0.615 AA717081DD2 CreditPFIZER INC 0.900% 1/15/1701/15/2017 06/03/2013501,168.06 500,915.00 (253.06) 950.00 0.900 0.897 AA717081DP5 CreditPFIZER INC 0.41488% 5/15/1705/15/2017 05/15/2014250,014.73 249,810.00 (204.73) 135.41 0.470 0.415 AA90331HMD2 CreditUS BANK NA MTN 0.527% 1/30/17 01/30/2017 01/30/2014 12/30/2016 250,155.40 249,737.50 (417.90) 230.56 0.530 0.527 AA-90331HMQ3 CreditUS BANK NA MTN 1.350% 1/26/18 01/26/2018 01/27/2015 12/26/2017 500,858.45 500,195.00 (663.45) 1,218.75 1.350 1.347 AA-931142DE0 CreditWAL MART STORES INC 0.600% 4/11/16 04/11/2016 04/11/2013319,559.98 319,338.14 (221.84) 903.83 0.600 0.599 AA94974BFK1 CreditWELLS FARGO MTN 0.9241% 4/23/18 04/23/2018 04/23/2013502,518.45 501,880.00 (638.45) 898.43 0.920 0.921 A+94974BFW5 CreditWELLS FARGO COM MTN 1.150% 6/02/17 06/02/2017 06/03/2014500,465.56 500,230.00 (235.56) 1,900.69 1.150 1.147 A+22533M2F7 Money Markets CREDIT AGRICOLE C D 0.310% 11/13/15 11/13/2015 08/17/2015500,000.00 500,085.00 85.00 193.75 0.310 0.31023290QR54 Money Markets DNB BANK ASA NY C D 0.260% 11/13/15 11/13/2015 08/13/2015500,000.00 500,095.00 95.00 176.94 0.260 0.2603137EADV8 Mortgage-Backed F H L M C 0.750% 7/14/1707/14/2017 05/29/2015799,376.00 801,792.00 2,416.00 2,033.33 0.410 0.747 AA+13063BN73 Taxable Muni CALIFORNIA ST VAR 1.050% 2/01/16 02/01/2016 03/27/2013501,694.86 500,910.00 (784.86) 875.00 1.050 1.048 AA-13063CFD7 Taxable Muni CALIFORNIA ST 1.250% 11/01/16 11/01/2016 11/05/2013352,605.43 352,849.00 243.57 1,822.92 1.250 1.239 AA-54473ERP1 Taxable Muni LOS ANGELES CNTY CA 1.507% 12/01/17 12/01/2017 09/02/201525,000.00 25,085.00 85.00 30.35 1.510 1.499 AA54473ERQ9 Taxable Muni LOS ANGELES CNTY CA 2.036% 12/01/18 12/01/2018 09/02/201550,000.00 50,222.50 222.50 82.01 2.040 2.024 AA6055806F1 Taxable Muni MISSISSIPPI ST SER D 3.381% 11/01/18 11/01/2018 11/10/2010106,451.33 106,836.00 384.67 1,408.75 3.380 3.155 AA650119AD2 Taxable Muni NEW YORK UNIVERSITY 0.898% 7/01/17 07/01/2017 04/16/2015200,000.00 200,026.00 26.00 823.17 0.900 0.897 AA-650119AE0 Taxable Muni NEW YORK UNIVERSITY 1.315% 7/01/18 07/01/2018 04/16/2015120,000.00 120,297.60 297.60 723.25 1.320 1.309 AA-702282NA8 Taxable Muni PASADENA CA UNIF SCH 0.541% 11/01/15 11/01/2015 03/20/2014425,339.99 425,004.25 (335.74) 958.02 0.540 0.541 A+702282ND2 Taxable Muni PASADENA CA UNIF 1.861% 11/01/18 11/01/2018 03/20/2014251,940.00 252,225.00 285.00 1,938.54 1.860 1.842 A+91412GWU5 Taxable Muni UNIV CALIFORNIA CA 1.418% 5/15/18 05/15/2018 03/25/2015250,000.00 252,402.50 2,402.50 1,831.58 1.420 1.402 AA91412GWV3 Taxable Muni UNIV OF CA 2.003% 5/15/1905/15/2019 03/25/2015250,000.00 253,205.00 3,205.00 2,587.21 2.000 1.972 AA20772JZR6 Tax-Exempt CONNECTICUT ST SER 3.000% 3/15/17 03/15/2017 03/25/2015465,965.91 465,588.00 (377.91) 600.00 3.000 2.900 AA912828D64 Treasuries U S TREASURY NT 0.500% 8/31/16 08/31/2016 09/02/20143,072,100.13 3,073,407.70 1,307.57 1,307.28 0.500 0.499 N/AATTACHMENT 1278 Account Number: 001050990415 Name: RIVERSIDE COUNTY TRANS COMMCUSIPSecurity Type Category Issuer Final Maturity Trade DateNext Call Date Original CostBase Market ValueUnrealized Gain/LossAccrued Income Coupon YieldCredit RatingPayden & Rygel Operating Portfolio by Investment Category for Quarter ended September 30, 2015912828D98 Treasuries U S TREASURY NT 1.000% 9/15/17 09/15/2017 09/15/2014 4,970,080.24 4,994,918.40 24,838.16 2,180.22 1.000 0.991 N/A912828F88 Treasuries U S TREASURY NT 0.375% 10/31/16 10/31/2016 10/31/2014 4,991,406.25 4,998,900.00 7,493.75 7,846.47 0.380 0.375 N/A912828G20 Treasuries U S TREASURY NT 0.875% 11/15/17 11/15/2017 11/15/2014 2,484,066.80 2,498,814.60 14,747.80 8,229.52 0.880 0.871 N/A912828H78 Treasuries U S TREASURY NT 0.500% 1/31/17 01/31/2017 02/02/2015 3,145,508.78 3,151,228.50 4,238.27 2,653.53 0.500 0.499 N/A912828H94 Treasuries U S TREASURY NT 1.000% 2/15/18 02/15/2018 02/17/2015 3,032,136.92 3,036,187.20 4,050.28 3,857.07 1.000 0.993 N/A912828K25 Treasuries U S TREASURY NT 0.750% 4/15/18 04/15/2018 04/15/2015 1,241,556.92 1,247,950.00 6,393.08 4,328.89 0.750 0.750 N/A912828SS0 Treasuries U S TREASURY NT 0.875% 4/30/17 04/30/2017 04/30/2012 1,373,744.94 1,376,850.00 3,105.06 5,016.51 0.880 0.870 N/A912828WT3 Treasuries U S TREASURY NT 0.875% 7/15/17 07/15/2017 07/15/2014 1,003,324.42 1,004,700.00 1,375.58 1,854.62 0.880 0.870 N/A50,163,043.29 50,239,643.66 75,118.92 84,497.50 79 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss Amount07/01/201531846V203INTEREST EARNED ON FIRST AMER GOVT OBLIG FUND CL Y UNIT ON 0.0000 SHARES DUE 6/30/2015 INTEREST FROM 6/1/15 TO 6/30/15- - - - - 1.85 - - - 07/02/20153133EEWS5INTEREST EARNED ON F F C B DEB 0.224% 1/02/18 $1 PV ON 700000.0000 SHARES DUE 7/2/2015- - - - - 130.67 - - - 07/02/2015 07/02/2015 07/02/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y132.52 1.00000 - - - (132.52) 132.52 - - 07/13/2015084664CD1AMORTIZED PREMIUM ON BERKSHIRE HATHAWAY 0.5823% 1/12/18 CURRENT YEAR AMORTIZATION- - - - - - (56.46) - - 07/13/2015084664CD1INTEREST EARNED ON BERKSHIRE HATHAWAY 0.5823% 1/12/18 $1 PV ON 250000.0000 SHARES DUE 7/13/2015- - - - - 363.94 - - - 07/13/2015263901AE0AMORTIZED PREMIUM ON DUKE ENERGY INDIAN 0.63285% 7/11/16 CURRENT YEAR AMORTIZATION- - - - - - (191.32) - - 07/13/2015263901AE0INTEREST EARNED ON DUKE ENERGY INDIAN 0.63285% 7/11/16 $1 PV ON 750000.0000 SHARES DUE 7/11/2015- - - - - 1,186.60 - - - 07/13/2015 07/13/2015 07/13/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y1,550.54 1.00000 - - - (1,550.54) 1,550.54 - - 07/14/2015 07/14/2015 07/14/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y499,027.78 1.00000 - - - (499,027.78) 499,027.78 - - 07/14/20157426M2A50INTEREST EARNED ON PRIVATE EXP FUNDING C P 1/05/16 $1 PV ON 500000.0000 SHARES DUE 7/13/2015 500,000 PAR VALUE AT 99.805556 %- - - - - 320.84 - - - 07/14/2015 07/13/2015 07/14/2015 7426M2A50SOLD PAR VALUE OF PRIVATE EXP FUNDING C P 1/05/16 /MLPFS INC/FIXED INCOME/500,000 PAR VALUE AT 99.805556 %(500,000.00) 0.99806 - - - 498,706.94 (498,706.94) - - 07/15/2015161571GS7AMORTIZED PREMIUM ON CHASE ISSUANCE TRU 0 5055% 2/18/20 CURRENT YEAR AMORTIZATION(45 41)Payden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201507/15/2015161571GS70.5055% 2/18/20 CURRENT YEAR AMORTIZATION-- - - --(45.41)-- 07/15/2015161571GS7INTEREST EARNED ON CHASE ISSUANCE TRU 0.5055% 2/18/20 $1 PV ON 315.9400 SHARES DUE 7/15/2015 $0.00042/PV ON 750,000.00 PV DUE 7/15/15- - - - - 315.94 - - - 07/15/2015 07/15/2015 07/15/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y315.94 1.00000 - - - (315.94) 315.94 - - 07/15/2015 07/15/2015 07/15/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y7,118.89 1.00000 - - - (7,118.89) 7,118.89 - - 07/15/201547787UAB9INTEREST EARNED ON JOHN DEERE OWNER 0.870% 2/15/18 $1 PV ON 490000.0000 SHARES DUE 7/15/2015- - - - - 355.25 - - - 07/15/201547787VAC5INTEREST EARNED ON JOHN DEERE OWNER 0.920% 4/16/18 $1 PV ON 575.0000 SHARES DUE 7/15/2015 $0.00077/PV ON 750,000.00 PV DUE 7/15/15- - - - - 575.00 - - - 07/15/2015717081DD2AMORTIZED PREMIUM ON PFIZER INC 0.900% 1/15/17 CURRENT YEAR AMORTIZATION- - - - - - (281.94) - - 07/15/2015717081DD2INTEREST EARNED ON PFIZER INC 0.900% 1/15/17 $1 PV ON 500000.0000 SHARES DUE 7/15/2015- - - - - 2,250.00 - - - 07/15/201589237CAD3INTEREST EARNED ON TOYOTA AUTO RECEIV 1.270% 5/15/19 $1 PV ON 493.8900 SHARES DUE 7/15/2015 $0.00099/PV ON 500,000.00 PV DUE 7/15/15- - - - - 493.89 - - - 07/15/2015912828WT3AMORTIZED PREMIUM ON U S TREASURY NT 0.875% 7/15/17 CURRENT YEAR AMORTIZATION- - - - - - (503.71) - - 07/15/2015912828WT3INTEREST EARNED ON U S TREASURY NT 0.875% 7/15/17 $1 PV ON 1000000.0000 SHARES DUE 7/15/2015- - - - - 4,375.00 - - - 07/16/2015 07/16/2015 07/16/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y930.25 1.00000 - - - (930.25) 930.25 - - 07/20/2015 07/20/2015 07/20/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y181.25 1.00000 - - - (181.25) 181.25 - - 07/20/2015 07/20/2015 07/20/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y371.44 1.00000 - - - (371.44) 371.44 - - 07/20/201536159LCN4AMORTIZED PREMIUM ON GE DEALER FLOORPLA 0.5943% 10/20/19 CURRENT YEAR AMORTIZATION- - - - - - (17.29) - - 07/20/201536159LCN4INTEREST EARNED ON GE DEALER FLOORPLA 0.5943% 10/20/19 $1 PV ON 371.4400 SHARES DUE 7/20/2015 $0.00050/PV ON 750,000.00 PV DUE 7/20/15- - - - - 371.44 - - - Page 28 of 33ATTACHMENT 1380 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss AmountPayden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201507/20/201592867VAB6INTEREST EARNED ON VOLKSWAGEN AUTO 0.870% 6/20/17 $1 PV ON 181.2500 SHARES DUE 7/20/2015 $0.00073/PV ON 250,000.00 PV DUE 7/20/15- - - - - 181.25 - - - 07/23/2015 07/23/2015 07/23/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y1,146.66 1.00000 - - - (1,146.66) 1,146.66 - - 07/23/201594974BFK1AMORTIZED PREMIUM ON WELLS FARGO MTN 0.90725% 4/23/18 CURRENT YEAR AMORTIZATION- - - - - - (225.15) - - 07/23/201594974BFK1INTEREST EARNED ON WELLS FARGO MTN 0.90725% 4/23/18 $1 PV ON 500000.0000 SHARES DUE 7/23/2015- - - - - 1,146.66 - - - 07/24/2015 07/23/2015 07/24/2015 3130A62S5PURCHASED PAR VALUE OF F H L B 0.750% 8/28/17 /BARCLAYS CAPITAL INC. FIXED IN/1,030,000 PAR VALUE AT 99.776 %1,030,000.00 0.99776 - - - (1,027,692.80) 1,027,692.80 - - 07/24/2015 07/24/2015 07/24/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y719,454.11 1.00000 - - - (719,454.11) 719,454.11 - - 07/24/2015 07/24/2015 07/24/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(714,258.78) 1.00000 - - - 714,258.78 (714,258.78) - - 07/24/201507/24/2015 912828D64RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 0.500% 8/31/16- - - - - 2,043.21 - - - 07/24/201507/23/201507/24/2015 912828D64SOLD PAR VALUE OF U S TREASURY NT 0.500% 8/31/16 /CITIGROUP GLOBAL MARKETS INC./XOTC 1,030,000 PAR VALUE AT 100.082031 %(1,030,000.00) 1.00082 - - - 1,030,844.92 (1,030,776.74) 68.18 - 07/24/2015912828D64AMORTIZED PREMIUM ON U S TREASURY NT 0.500% 8/31/16 CURRENT YEAR AMORTIZATION- - - - - - (1,112.25) - - 07/27/2015TRUST FEES COLLECTED CHARGED FOR PERIOD 06/01/2015 THRU 06/30/2015 COLLECTED BY DISBURSEMENT- - - - - (521.61) - - - 07/27/20153136AMTM1INTEREST EARNED ON F N M A GTD REMIC 0.3845% 9/25/18 $1 PV ON 154.7400 SHARES DUE 7/25/2015 $0 00033/PV ON 468 678 66 PV DUE 7/25/15154 7407/27/20153136AMTM1$0.00033/PV ON 468,678.66 PV DUE 7/25/15-- - - -154.74--- 07/27/2015 07/25/201507/27/2015 3136AMTM1PAID DOWN PAR VALUE OF F N M A GTD REMIC 0.3845% 9/25/18(467.17) - - - - 467.17 (467.05) 0.12 - 07/27/2015 07/27/2015 07/27/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y3,456.55 1.00000 - - - (3,456.55) 3,456.55 - - 07/27/201590331HMQ3AMORTIZED PREMIUM ON US BANK NA MTN 1.350% 1/26/18 CURRENT YEAR AMORTIZATION- - - - - - (131.55) - - 07/27/201590331HMQ3INTEREST EARNED ON US BANK NA MTN 1.350% 1/26/18 $1 PV ON 500000.0000 SHARES DUE 7/26/2015- - - - - 3,356.25 - - - 07/28/2015 07/28/2015 07/28/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(253,064.35) 1.00000 - - - 253,064.35 (253,064.35) - - 07/28/201507/28/2015 702282ND2PAID ACCRUED INTEREST ON PURCHASE OF PASADENA CA UNIF 1.861% 11/01/18- - - - - (1,124.35) - - - 07/28/2015 07/23/2015 07/28/2015 702282ND2PURCHASED PAR VALUE OF PASADENA CA UNIF 1.861% 11/01/18 /NATIONAL FINANCIAL SERVICES CO/250,000 PAR VALUE AT 100.776 %250,000.00 1.00776 - - - (251,940.00) 251,940.00 - - 07/30/2015 07/30/2015 07/30/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y321.12 1.00000 - - - (321.12) 321.12 - - 07/30/201590331HMD2AMORTIZED PREMIUM ON US BANK NA MTN 0.50815% 1/30/17 CURRENT YEAR AMORTIZATION- - - - - - (27.08) - - 07/30/201590331HMD2INTEREST EARNED ON US BANK NA MTN 0.50815% 1/30/17 $1 PV ON 250000.0000 SHARES DUE 7/30/2015- - - - - 321.12 - - - 07/31/2015 07/31/2015 07/31/201531846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y7,875.00 1.00000 - - - (7,875.00) 7,875.00 - - 07/31/2015912828H78INTEREST EARNED ON U S TREASURY NT 0.500% 1/31/17 $1 PV ON 3150000.0000 SHARES DUE 7/31/2015- - - - - 7,875.00 - - - 08/03/2015037833AG5AMORTIZED PREMIUM ON APPLE INC 0.5405% 5/03/18 CURRENT YEAR AMORTIZATION- - - - - - (57.53) - - 08/03/2015037833AG5INTEREST EARNED ON APPLE INC 0.5405% 5/03/18 $1 PV ON 250000.0000 SHARES DUE 8/3/2015- - - - - 337.81 - - - 08/03/201513063BN73AMORTIZED PREMIUM ON CALIFORNIA ST VAR 1.050% 2/01/16 CURRENT YEAR AMORTIZATION- - - - - - (1,165.14) - - 08/03/201513063BN73INTEREST EARNED ON CALIFORNIA ST VAR 1.050% 2/01/16 $1 PV ON 500000.0000 SHARES DUE 8/1/2015- - - - - 2,625.00 - - - 08/03/20153133EEWS5INTEREST EARNED ON F F C B DEB 0.2265% 1/02/18 $1 PV ON 700000.0000 SHARES DUE 8/2/2015- - - - - 136.53 - - - 08/03/2015 08/03/2015 08/03/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y3,099.34 1.00000 - - - (3,099.34) 3,099.34 - - Page 29 of 3381 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss AmountPayden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201508/03/201531846V203INTEREST EARNED ON FIRST AMER GOVT OBLIG FUND CL Y UNIT ON 0.0000 SHARES DUE 7/31/2015 INTEREST FROM 7/1/15 TO 7/31/15- - - - - 2.40 - - - 08/04/2015 08/04/2015 08/04/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y2.40 1.00000 - - - (2.40) 2.40 - - 08/06/2015 08/06/2015 08/06/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y2,812.50 1.00000 - - - (2,812.50) 2,812.50 - - 08/06/2015459200HZ7INTEREST EARNED ON IBM CORP 1.125% 2/06/18 $1 PV ON 500000.0000 SHARES DUE 8/6/2015- - - - - 2,812.50 - - - 08/10/2015084670BH0AMORTIZED PREMIUM ON BERKSHIRE HATHAWAY 1.550% 2/09/18 CURRENT YEAR AMORTIZATION- - - - - - (575.35) - - 08/10/2015084670BH0INTEREST EARNED ON BERKSHIRE HATHAWAY 1.550% 2/09/18 $1 PV ON 500000.0000 SHARES DUE - - - - - 3,875.00 - - - 08/10/2015 08/10/2015 08/10/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y3,875.00 1.00000 - - - (3,875.00) 3,875.00 - - 08/13/2015 08/11/2015 08/13/2015 23290QR54PURCHASED PAR VALUE OF DNB BANK ASA NY C D 0.260% 11/13/15 /J.P. MORGAN SECURITIES LLC/500,000 PAR VALUE AT 100 %500,000.00 1.00000 - - - (500,000.00) 500,000.00 - - 08/13/2015 08/13/2015 08/13/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(299,400.47) 1.00000 - - - 299,400.47 (299,400.47) - - 08/13/201508/13/2015 912828D64RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 0.500% 8/31/16- - - - - 451.09 - - - 08/13/2015 08/12/2015 08/13/2015 912828D64SOLD PAR VALUE OF U S TREASURY NT 0.500% 8/31/16 /BMO CAPITAL MARKETS CORP./200,000 PAR VALUE AT 100.074219 %(200,000.00) 1.00074 - - - 200,148.44 (200,143.45) 4.99 - 08/13/2015912828D64AMORTIZED PREMIUM ON U S TREASURY NT 0.500% 8/31/16 CURRENT YEAR AMORTIZATION- - - - - - (146.42) - - 08/17/2015161571GS7AMORTIZED PREMIUM ON CHASE ISSUANCE TRU 0 55803% 2/18/20CURRENT YEAR AMORTIZATION(39 85)08/17/2015161571GS70.55803% 2/18/20 CURRENT YEAR AMORTIZATION-- - - --(39.85)-- 08/17/2015161571GS7INTEREST EARNED ON CHASE ISSUANCE TRU 0.55803% 2/18/20 $1 PV ON 348.7700 SHARES DUE 8/15/2015 $0.00047/PV ON 750,000.00 PV DUE 8/15/15- - - - - 348.77 - - - 08/17/2015166764AK6AMORTIZED PREMIUM ON CHEVRON CORP 0.45355% 11/15/17 CURRENT YEAR AMORTIZATION- - - - - - (13.96) - - 08/17/2015166764AK6INTEREST EARNED ON CHEVRON CORP 0.45355% 11/15/17 $1 PV ON 250000.0000 SHARES DUE 8/17/2015- - - - - 289.77 - - - 08/17/2015 08/13/2015 08/17/2015 22533M2F7PURCHASED PAR VALUE OF CREDIT AGRICOLE C D 0.310% 11/13/15 /J.P. MORGAN SECURITIES LLC/500,000 PAR VALUE AT 100 %500,000.00 1.00000 - - - (500,000.00) 500,000.00 - - 08/17/2015 08/17/2015 08/17/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y18,896.40 1.00000 - - - (18,896.40) 18,896.40 - - 08/17/2015 08/17/2015 08/17/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y2,769.66 1.00000 - - - (2,769.66) 2,769.66 - - 08/17/201536962G2G8AMORTIZED PREMIUM ON GEN ELEC CAP CRP MTN 5.400% 2/15/17 CURRENT YEAR AMORTIZATION- - - - - - (2,026.90) - - 08/17/201536962G2G8INTEREST EARNED ON GEN ELEC CAP CRP MTN 5.400% 2/15/17 $1 PV ON 104000.0000 SHARES DUE - - - - - 2,808.00 - - - 08/17/201547787UAB9INTEREST EARNED ON JOHN DEERE OWNER 0.870% 2/15/18 $1 PV ON 355.2500 SHARES DUE 8/15/2015 $0.00073/PV ON 490,000.00 PV DUE 8/15/15- - - - - 355.25 - - - 08/17/201547787VAC5INTEREST EARNED ON JOHN DEERE OWNER 0.920% 4/16/18 $1 PV ON 750000.0000 SHARES DUE 8/15/2015- - - - - 575.00 - - - 08/17/2015717081DP5AMORTIZED PREMIUM ON PFIZER INC 0.41488% 5/15/17 CURRENT YEAR AMORTIZATION- - - - - - (1.98) - - 08/17/2015717081DP5INTEREST EARNED ON PFIZER INC 0.41488% 5/15/17 $1 PV ON 250000.0000 SHARES DUE 8/15/2015- - - - - 270.83 - - - 08/17/201589237CAD3INTEREST EARNED ON TOYOTA AUTO RECEIV 1.270% 5/15/19 $1 PV ON 529.1700 SHARES DUE 8/15/2015 $0.00106/PV ON 500,000.00 PV DUE 8/15/15- - - - - 529.17 - - - 08/17/201508/17/2015 912828D64RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 0.500% 8/31/16- - - - - 1,154.89 - - - 08/17/2015 08/14/2015 08/17/2015 912828D64SOLD PAR VALUE OF U S TREASURY NT 0.500% 8/31/16 /BMO CAPITAL MARKETS CORP./500,000 PAR VALUE AT 100.046875 %(500,000.00) 1.00047 - - - 500,234.38 (500,354.93) (120.55) - Page 30 of 3382 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss AmountPayden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201508/17/2015912828D64AMORTIZED PREMIUM ON U S TREASURY NT 0.500% 8/31/16 CURRENT YEAR AMORTIZATION- - - - - - (27.79) - - 08/17/2015912828H94AMORTIZED PREMIUM ON U S TREASURY NT 1.000% 2/15/18 CURRENT YEAR AMORTIZATION- - - - - - (1,783.39) - - 08/17/2015912828H94INTEREST EARNED ON U S TREASURY NT 1.000% 2/15/18 $1 PV ON 3020000.0000 SHARES DUE 8/15/2015- - - - - 15,100.00 - - - 08/18/2015 08/18/2015 08/18/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y1,219.00 1.00000 - - - (1,219.00) 1,219.00 - - 08/18/201558933YAH8AMORTIZED PREMIUM ON MERCK CO INC 0.6162% 5/18/18 CURRENT YEAR AMORTIZATION- - - - - - (217.82) - - 08/18/201558933YAH8INTEREST EARNED ON MERCK CO INC 0.6162% 5/18/18 $1 PV ON 750000.0000 SHARES DUE 8/18/2015- - - - - 1,219.00 - - - 08/20/2015 08/20/2015 08/20/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y412.04 1.00000 - - - (412.04) 412.04 - - 08/20/2015 08/20/2015 08/20/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y10,520.25 1.00000 - - - (10,520.25) 10,520.25 - - 08/20/201536159LCN4AMORTIZED PREMIUM ON GE DEALER FLOORPLA 0.65927% 10/20/19 CURRENT YEAR AMORTIZATION- - - - - - (17.36) - - 08/20/201536159LCN4INTEREST EARNED ON GE DEALER FLOORPLA 0.65927% 10/20/19 $1 PV ON 412.0400 SHARES DUE 8/20/2015 $0.00055/PV ON 750,000.00 PV DUE 8/20/15- - - - - 412.04 - - - 08/20/2015 08/20/201508/20/2015 92867VAB6PAID DOWN PAR VALUE OF VOLKSWAGEN AUTO 0.870% 6/20/17(10,339.00) - - - - 10,339.00 (10,328.82) 10.18 - 08/20/201592867VAB6INTEREST EARNED ON VOLKSWAGEN AUTO 0.870% 6/20/17 $1 PV ON 181.2500 SHARES DUE 8/20/2015 $0.00073/PV ON 250,000.00 PV DUE 8/20/15- - - - - 181.25 - - - 08/24/201517305EFN0INTEREST EARNED ON CITIBANK CREDIT CARD 1.020% 2/22/19 $1 PV ON 700000 0000 SHARES DUE 8/22/20153 570 0008/24/201517305EFN02/22/19 $1 PV ON 700000.0000 SHARES DUE 8/22/2015-- - - -3,570.00--- 08/24/2015 08/24/201508/24/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y3,570.00 1.00000 - - - (3,570.00) 3,570.00 - - 08/25/2015TRUST FEES COLLECTED CHARGED FOR PERIOD 07/01/2015 THRU 07/31/2015 COLLECTED BY DISBURSEMENT- - - - - (521.90) - - - 08/25/20153136AMTM1INTEREST EARNED ON F N M A GTD REMIC 0.3845% 9/25/18 $1 PV ON 159.2500 SHARES DUE 8/25/2015 $0.00034/PV ON 468,211.49 PV DUE 8/25/15- - - - - 159.25 - - - 08/25/2015 08/25/2015 08/25/2015 3136AMTM1PAID DOWN PAR VALUE OF F N M A GTD REMIC 0.3845% 9/25/18(416.59) - - - - 416.59 (416.48) 0.11 - 08/25/2015 08/25/2015 08/25/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y200,725.89 1.00000 - - - (200,725.89) 200,725.89 - - 08/25/2015 08/25/2015 08/25/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y53.94 1.00000 - - - (53.94) 53.94 - - 08/25/201508/25/2015 912828D64RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 0.500% 8/31/16- - - - - 483.70 - - - 08/25/2015 08/24/2015 08/25/2015 912828D64SOLD PAR VALUE OF U S TREASURY NT 0.500% 8/31/16 /DEUTSCHE BANK SECURITIES, INC./200,000 PAR VALUE AT 100.121094 %(200,000.00) 1.00121 - - - 200,242.19 (200,139.02) 103.17 - 08/25/2015912828D64AMORTIZED PREMIUM ON U S TREASURY NT 0.500% 8/31/16 CURRENT YEAR AMORTIZATION- - - - - - (48.18) - - 08/26/2015 08/26/2015 08/26/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(299,956.20) 1.00000 - - - 299,956.20 (299,956.20) - - 08/26/2015 08/18/2015 08/26/2015 89231TAD2PURCHASED PAR VALUE OF TOYOTA AUTO 1.440% 6/17/19 /BARCLAYS CAPITAL INC. FIXED IN/300,000 PAR VALUE AT 99.9854 %300,000.00 0.99985 - - - (299,956.20) 299,956.20 - - 08/28/20153130A62S5INTEREST EARNED ON F H L B 0.750% 8/28/17 $1 PV ON 1030000.0000 SHARES DUE 8/28/2015- - - - - 729.58 - - - 08/28/2015 08/28/2015 08/28/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(8.20) 1.00000 - - - 8.20 (8.20) - - 08/28/2015 08/28/2015 08/28/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y737.78 1.00000 - - - (737.78) 737.78 - - 08/31/2015 08/31/2015 08/31/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y7,675.00 1.00000 - - - (7,675.00) 7,675.00 - - 08/31/2015912828D64AMORTIZED PREMIUM ON U S TREASURY NT 0.500% 8/31/16 CURRENT YEAR AMORTIZATION- - - - - - (33.90) - - 08/31/2015912828D64INTEREST EARNED ON U S TREASURY NT 0.500% 8/31/16 $1 PV ON 3070000.0000 SHARES DUE 8/31/2015- - - - - 7,675.00 - - - Page 31 of 3383 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss AmountPayden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201509/01/2015 08/27/2015 09/01/2015 3135G0E58PURCHASED PAR VALUE OF F N M A DEB 1.125% 10/19/18 /BARCLAYS CAPITAL INC. FIXED IN/530,000 PAR VALUE AT 99.838 %530,000.00 0.99838 - - - (529,141.40) 529,141.40 - - 09/01/2015 09/01/2015 09/01/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(27,220.54) 1.00000 - - - 27,220.54 (27,220.54) - - 09/01/201531846V203INTEREST EARNED ON FIRST AMER GOVT OBLIG FUND CL Y UNIT ON 0.0000 SHARES DUE 8/31/2015 INTEREST FROM 8/1/15 TO 8/31/15- - - - - 1.57 - - - 09/01/2015 08/27/2015 09/01/2015 912828G20SOLD PAR VALUE OF U S TREASURY NT 0.875% 11/15/17 /CITIGROUP GLOBAL MARKETS INC./XOTC 500,000 PAR VALUE AT 100.125 %(500,000.00) 1.00125 - - - 500,625.00 (498,808.59) 1,816.41 - 09/01/201509/01/2015 912828G20RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT 0.875% 11/15/17- - - - - 1,295.86 - - - 09/02/2015166764AV2INTEREST EARNED ON CHEVRON CORP 1.365% 3/02/18 $1 PV ON 500000.0000 SHARES DUE 9/2/2015- - - - - 3,393.54 - - - 09/02/20153133EEWS5INTEREST EARNED ON F F C B DEB 0.2285% 1/02/18 $1 PV ON 700000.0000 SHARES DUE 9/2/2015- - - - - 137.73 - - - 09/02/2015 09/02/2015 09/02/2015 31846V203SOLD UNITS OF FIRST AMER GOVT OBLIG FUND CL Y(71,467.16) 1.00000 - - - 71,467.16 (71,467.16) - - 09/02/2015 08/13/2015 09/02/2015 54473ERP1PURCHASED PAR VALUE OF LOS ANGELES CNTY CA 1.507% 12/01/17 /GOLDMAN, SACHS & CO./25,000 PAR VALUE AT 100 %25,000.00 1.00000 - - - (25,000.00) 25,000.00 - - 09/02/2015 08/13/2015 09/02/2015 54473ERQ9PURCHASED PAR VALUE OF LOS ANGELES CNTY CA 2.036% 12/01/18 /GOLDMAN, SACHS & CO./50,000 PAR VALUE AT 100 %50,000.00 1.00000 - - - (50,000.00) 50,000.00 - - 09/08/201506406HCK3INTEREST EARNED ON BANK OF NY MTN 0.73488% 3/06/18 $1 PV ON 750000.0000 SHARES DUE 9/6/2015- - - - - 1,377.89 - - - 09/08/201506406HCK3AMORTIZED PREMIUM ON BANK OF NY MTN 0.73488% 3/06/18 CURRENT YEAR AMORTIZATION- - - - - - (115.09) - - INTEREST EARNED ON EXXON MOBIL 1 305%09/08/201530231GAL6INTEREST EARNED ON EXXON MOBIL 1.305% 3/06/18 $1 PV ON 460000.0000 SHARES DUE 9/6/2015- - - - - 3,001.50 - - - 09/08/2015 09/08/2015 09/08/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y4,379.39 1.00000 - - - (4,379.39) 4,379.39 - - 09/14/2015 09/14/2015 09/14/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y1,242.83 1.00000 - 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- 09/15/201536962G3H5INTEREST EARNED ON GEN ELEC CAP CRP MTN 5.625% 9/15/17 $1 PV ON 500000.0000 SHARES DUE - - - - - 14,062.50 - - - 09/15/201536962G3H5AMORTIZED PREMIUM ON GEN ELEC CAP CRP MTN 5.625% 9/15/17 CURRENT YEAR AMORTIZATION- - - - - - (11,349.04) - - 09/15/201547787UAB9INTEREST EARNED ON JOHN DEERE OWNER 0.870% 2/15/18 $1 PV ON 490000.0000 SHARES DUE 9/15/2015- - - - - 355.25 - - - 09/15/201547787VAC5INTEREST EARNED ON JOHN DEERE OWNER 0.920% 4/16/18 $1 PV ON 575.0000 SHARES DUE 9/15/2015 $0.00077/PV ON 750,000.00 PV DUE 9/15/15- - - - - 575.00 - - - 09/15/201589231TAD2INTEREST EARNED ON TOYOTA AUTO 1.440% 6/17/19 $1 PV ON 300000.0000 SHARES DUE 9/15/2015- - - - - 212.17 - - - 09/15/201589237CAD3INTEREST EARNED ON TOYOTA AUTO RECEIV 1.270% 5/15/19 $1 PV ON 529.1700 SHARES DUE 9/15/2015 $0.00106/PV ON 500,000.00 PV DUE 9/15/15- - - - - 529.17 - - - 09/15/2015912828D98INTEREST EARNED ON U S TREASURY NT 1.000% 9/15/17 $1 PV ON 4960000.0000 SHARES DUE 9/15/2015- - - - - 24,800.00 - - - Page 32 of 3384 Account Number: 001050990415Name: RIVERSIDE COUNTY TRANS COMMTransaction Date Trade DateSettlement Date CUSIP Description Units Price Commissions SEC FeesMiscellaneous Fees Net Cash AmountFederal Tax Cost AmountShort Term Gain/Loss AmountLong Term Gain/Loss AmountPayden & Rygel Operating Portfolio Transaction ReportQuarter ended September 30, 201509/15/2015912828D98AMORTIZED PREMIUM ON U S TREASURY NT 1.000% 9/15/17 CURRENT YEAR AMORTIZATION- - - - - - (2,707.26) - - 09/21/2015 09/21/2015 09/21/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y435.17 1.00000 - - - (435.17) 435.17 - - 09/21/2015 09/21/2015 09/21/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y12,615.40 1.00000 - - - (12,615.40) 12,615.40 - - 09/21/201536159LCN4INTEREST EARNED ON GE DEALER FLOORPLA 0.69627% 10/20/19 $1 PV ON 435.1700 SHARES DUE 9/20/2015 $0.00058/PV ON 750,000.00 PV DUE 9/20/15- - - - - 435.17 - - - 09/21/201536159LCN4AMORTIZED PREMIUM ON GE DEALER FLOORPLA 0.69627% 10/20/19 CURRENT YEAR AMORTIZATION- - - - - - (16.87) - - 09/21/2015 09/20/201509/21/2015 92867VAB6PAID DOWN PAR VALUE OF VOLKSWAGEN AUTO 0.870% 6/20/17(12,441.65) - - - - 12,441.65 (12,429.40) 12.25 - 09/21/201592867VAB6INTEREST EARNED ON VOLKSWAGEN AUTO 0.870% 6/20/17 $1 PV ON 173.7500 SHARES DUE 9/20/2015 $0.00073/PV ON 239,661.00 PV DUE 9/20/15- - - - - 173.75 - - - 09/25/2015TRUST FEES COLLECTED CHARGED FOR PERIOD 08/01/2015 THRU 08/31/2015 COLLECTED BY DISBURSEMENT- - - - - (521.76) - - - 09/25/20153136AMTM1INTEREST EARNED ON F N M A GTD REMIC 0.3845% 9/25/18 $1 PV ON 161.3300 SHARES DUE 9/25/2015 $0.00034/PV ON 467,794.90 PV DUE 9/25/15- - - - - 161.33 - - - 09/25/2015 09/25/2015 09/25/2015 3136AMTM1PAID DOWN PAR VALUE OF F N M A GTD REMIC 0.3845% 9/25/18(418.76) 415.73114 - - - 418.76 (418.65) 0.11 - 09/25/2015 09/25/2015 09/25/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y58.33 1.00000 - - - (58.33) 58.33 - - 09/25/201509/25/201509/25/201531846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y5881 00000(5 88)58809/25/201509/25/201509/25/201531846V203CL Y5.881.00000 - - -(5.88)5.88-- 09/25/2015717081DP5AMORTIZED PREMIUM ON PFIZER INC 0.41488% 5/15/17 TO CORRECT INTEREST PAID- - - - - - 1.98 - - 09/25/2015717081DP5INTEREST EARNED ON PFIZER INC 0.41488% 5/15/17 $1 PV ON 250000.0000 SHARES DUE 8/15/2015 TO CORRECT INTEREST PAID- - - - - (270.83) - - - 09/25/2015717081DP5INTEREST EARNED ON PFIZER INC 0.41488% 5/15/17 $1 PV ON 250000.0000 SHARES DUE 8/15/2015- - - - - 276.71 - - - 09/25/2015717081DP5AMORTIZED PREMIUM ON PFIZER INC 0.41488% 5/15/17 CURRENT YEAR AMORTIZATION- - - - - - (1.98) - - 09/29/20153134G7AY7INTEREST EARNED ON F H L M C 1.000% 6/29/17 $1 PV ON 520000.0000 SHARES DUE 9/29/2015- - - - - 1,300.00 - - - 09/29/20153134G7AY7ACCREDITED DISCOUNT ON F H L M C 1.000% 6/29/17 CURRENT YEAR MARKET DISCOUNT- - - - - - 36.60 - - 09/29/2015 09/29/2015 09/29/2015 3134G7AY7FULL CALL PAR VALUE OF F H L M C 1.000% 6/29/17 /CALLS/(520,000.00) 1.00000 - - - 520,000.00 (519,963.80) 36.20 - 09/29/2015 09/29/2015 09/29/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y1,300.00 1.00000 - - - (1,300.00) 1,300.00 - - 09/29/2015 09/29/2015 09/29/2015 31846V203PURCHASED UNITS OF FIRST AMER GOVT OBLIG FUND CL Y520,000.00 1.00000 - - - (520,000.00) 520,000.00 - - Total- - - - 103,306.76 1,931.17 - Page 33 of 3385 Logan Circle Partners, L.P.  25 Deforest Avenue Summit, NJ 07901  908-376-0550 Riverside County Transportation Commission SHORT DURATION FIXED INCOME Third Quarter 2015 Review ATTACHMENT 14 86 GDP – Growth to moderate from second quarter uptick as strong dollar continues to weigh on exports. Inventory accumulation to get worked down and government spending expected to decline. Consumer spending on healthcare, motor vehicles, and food services drives momentum in personal consumption expenditures. Overall trend in GDP points to another year of moderate 2% growth. Consumer – Lower gas prices helping to support the pickup in consumer spending. Real median household income growth, however, remains little changed over the last five years. Continued student and auto loan debt growth bodes ill for future discretionary spending and savings. Business – Stronger U.S. dollar and weaker international growth continues to pressure revenues and earnings of select industrial sub-sectors (technology, consumer non-cyclicals, capital goods manufacturers). Concerns grow over deterioration in financial metrics in industries where share buybacks and M&A activity are prevalent. Financials continue to build capital, maintain substantial liquidity, improve balance sheets due to regulatory pressure and restrictions. Employment – Solid monthly employment gains driven by part-time and lower paying positions. Decline in headline unemployment rate overstates the health of the labor market due to low participation rate. Average hourly earnings growth in service sectors (leisure, retail, business) outpaces those in goods producing and government sectors. Trend towards increasing hourly wages will not impact overall income growth. Housing – Annual home price appreciation will remain in the low single digit range due to the limited supply of desirable homes in select markets. First-time homebuyer demand remains tepid as newly formed households continue to show a propensity to rent. New home sales as a proportion of total home sales remains below historical norms, however, mortgage credit availability has begun to increase as lenders relax underwriting standards. Inflation – Core PCE continues to run below the Federal Reserve’s long-term 2% target. Sustained dollar strength has disinflationary implications as import prices decline. Consistent with trends in other developed economies, drop in commodity and energy prices as well as limited wage growth keeps inflation in check for the foreseeable future. International – Interest rates in many developed markets will remain low given central bank stimulus measures, notably led by the European Central Bank and the Bank of Japan. China’s slowing economic growth continues to be a headwind for other emerging and commodity-based economies leading to competitive devaluations in an attempt to spur export growth. Monetary and Fiscal Policy – Once again Federal Reserve’s forecast for growth, inflation and the Federal Funds rate trajectory once again is adjusted lower. Federal Reserve’s efforts to normalize policy deferred to late 2015 or early 2016 as financial market stability is expressly introduced into their deliberations. The views presented above are Logan Circle's and are subject to change over time. There can be no assurance that the views expressed above will prove accurate and should not be relied upon as a reliable indicator of future events. MARKET REVIEW Outlook and Current Themes 1 87 PORTFOLIO REVIEW – Construction Funds 2 Corporate 53% Municipal 4% ABS 13% CP 30% Corporate 10% Municipal 13% Agency 1% RMBS 2% CMBS 2% ABS 4% Treasury 7% CP 61% Asset Allocation Portfolio Characteristics As of July 11, 2013 Actual Portfolio Yield to Maturity 0.67% Duration 1.48 Years Average Quality (Moody’s) A1 As of September 30, 2015 Actual Portfolio Yield to Maturity 0.57% Duration 0.49 Years Average Quality (Moody’s) Aa2 Portfolio Performance1 3Q 2015 YTD Since Inception (Annualized) Total Construction Fund (Gross of Fees) 0.11% 0.34% 0.44% Total Construction Fund (Net of Fees) 0.09% 0.28% 0.35% Citigroup 3-Month Treasury Bill 0.01% 0.02% 0.03% Past Performance is not indicative of future results. Performance returns for periods greater than one year are annualized. The performance benchmark shown for the Riverside County Construction Fund is the Citigroup 3–Month Treasury Bill, which tracks the return of one three-month Treasury bill until maturity. Corporate 11% Municipal 11% Agency 1% RMBS 1% CMBS 1% ABS 3% Treasury 2% CP 77% As of June 30, 2015 Actual Portfolio Yield to Maturity 0.55% Duration 0.43 Years Average Quality (Moody’s) Aa2 88 PORTFOLIO REVIEW – Equity Contribution 3 Corporate 48% Municipal 3% Agency 5% RMBS 2% CMBS 4% ABS 10% Treasury 9% CP 19% As of June 30, 2015 Actual Portfolio Yield to Maturity 1.07% Duration 1.62 Years Average Quality (Moody’s) A1 Past Performance is not indicative of future results. Performance returns for periods greater than one year are annualized. The performance benchmark shown for the Riverside County Construction Fund is the Bank of America Merrill Lynch 1-3 Year U.S. Treasury Index, which is a broad-based index consisting of U.S. Treasury securities with an outstanding par greater than or equal to $250 million and a maturity range from one to three years, reflecting total return. Corporate 36% Municipal 5% Agency 4% RMBS 8% CMBS 7% ABS 15% Treasury 25% As of September 30, 2015 Actual Portfolio Yield to Maturity 1.04% Duration 1.67 Years Average Quality (Moody’s) Aa2 Portfolio Performance1 3Q 2015 Since Inception (7/1/2015) Equity Contribution Fund (Gross of Fees) 0.39% 0.39% Equity Contribution Fund (Net of Fees) 0.37% 0.37% BofA ML U.S. Treasury Index 1-3 Year 0.31% 0.31% Asset Allocation Portfolio Characteristics 89 4 As of September 30, 2015 Actual Portfolio Yield to Maturity 0.94% Duration 1.74 Years Average Quality (Moody’s) Aa1 Corporate 31% Municipal 3% RMBS 5% CMBS 9% ABS 2% Treasury 38% CP 12% PORTFOLIO REVIEW – Capitalized Interest Funds As of July 11, 2013 Actual Portfolio Yield to Maturity 1.00% Duration 2.39 Years Average Quality (Moody’s) Aa1 Portfolio Performance1 3Q 2015 YTD Since Inception (Annualized) Total Capitalized Interest Fund (Gross of Fees) 0.46% 1.04% 1.31% Total Capitalized Interest Fund (Net of Fees) 0.44% 0.97% 1.21% BofA ML U.S. Treasury Index 1-3 Year 0.31% 0.98% 0.87% Corporate 38% Municipal 10% Agency 2% RMBS 6% CMBS 12% ABS 0% Treasury 30% CP 3% Past Performance is not indicative of future results. Performance returns for periods greater than one year are annualized. The performance benchmark shown for the Riverside County Capitalized Interest Fund is the Bank of America Merrill Lynch 1-3 Year U.S. Treasury Index, which is a broad-based index consisting of U.S. Treasury securities with an outstanding par greater than or equal to $250 million and a maturity range from one to three years, reflecting total return. Asset Allocation Portfolio Characteristics As of June 30, 2015 Actual Portfolio Yield to Maturity 1.03% Duration 1.99 Years Average Quality (Moody’s) Aa1 Corporate 34% Municipal 10% RMBS 7% CMBS 13% ABS 1% Treasury 35% CP 1% 90 5 Agency 18% RMBS 24% CMBS 12% Treasury 46% PORTFOLIO REVIEW – Debt Reserve Fund As of July 11, 2013 Actual Portfolio Yield to Maturity 1.98% Duration 5.04 Years Average Quality (Moody’s) Aaa As of September 30, 2015 Actual Portfolio Yield to Maturity 1.64% Duration 4.25 Years Average Quality (Moody’s) Aaa Portfolio Performance1 3Q 2015 YTD Since Inception (Annualized) Total Debt Service Fund (Gross of Fees) 1.63% 2.60% 3.13% Total Debt Service Fund (Net of Fees) 1.61% 2.52% 3.03% BofA ML U.S. Treasury Index 3-7 Year 1.61% 2.84% 2.62% Past Performance is not indicative of future results. Performance returns for periods greater than one year are annualized. The performance benchmark shown for the Riverside County Capitalized Interest Fund is the Bank of America Merrill Lynch US Treasury 3-7 Year, which is a broad-based index consisting of U.S. Treasury securities with an outstanding par greater or equal to $25 million and a maturity range from three to seven years, inclusive, reflecting total return. Agency 14% RMBS 14% CMBS 32% Treasury 40% CP 1% Asset Allocation Portfolio Characteristics As of June 30, 2015 Actual Portfolio Yield to Maturity 1.86% Duration 4.41 Years Average Quality (Moody’s) Aaa Agency 13% RMBS 15% CMBS 32% Treasury 40% 91 PORTFOLIO REVIEW Portfolio Market Value Portfolio Market Value (7/3/2013) Net Outflows Market Value (9/30/2015) Change in Market Value Construction (Sales Tax) $332,687,595 $284,602,733 $50,198,049 +$2,113,187 Construction (Toll Revenue) $122,120,571 $81,515,411 $41,029,821 +$424,661 Total Construction Funds $454,808,167 $366,118,144 $91,227,870 +$2,537,847 6 Portfolio Market Value (7/3/2013) Net Outflows Market Value (9/30/2015) Change in Market Value Capitalized Interest (Sales Tax) $103,683,353 $45,945,237 $60,278,376 +$2,540,260 Capitalized Interest (Toll Revenue) $31,416,498 $13,606,992 $18,635,073 +$825,567 Total Capitalized Interest Funds $135,099,851 $59,552,229 $78,913,449 +$3,365,827 Portfolio Market Value (7/3/2013) Net Outflows Market Value (9/30/2015) Change in Market Value Debt Service Reserve Fund $17,667,869 $0 $18,936,007 +$1,268,138 Portfolio Market Value (6/10/2015) Net Outflows Market Value (9/30/2015) Change in Market Value Equity Contribution $32,793,399 $0 $32,956,441 +$163,042 92 DISCLAIMERS In general. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” Logan Circle Partners, L.P., a Fortress Investment Group LLC company, is referred to herein as “Logan Circle”. No offer to purchase or sell securities. This Presentation is being provided to you at your specific request. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any security and may not be relied upon in connection with the purchase or sale of any security. Projections. Projections contained in this Presentation are based on a variety of estimates and assumptions by Logan Circle, including, among others, estimates of future operating results, the value of assets and market conditions at the time of disposition, and the timing and manner of disposition or other realization events. These estimates and assumptions are inherently uncertain and are subject to numerous business, industry, market, regulatory, competitive and financial risks that are outside of Logan Circle’s control. There can be no assurance that the assumptions made in connection with the projections will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of its invested capital. The inclusion of the projections herein should not be regarded as an indication that Logan Circle or any of its affiliates considers the projections to be a reliable prediction of future events and the projections should not be relied upon as such. Neither Logan Circle nor any of its affiliates or representatives has made or makes any representation to any person regarding the projections and none of them intends to update or otherwise revise the projections to reflect circumstances existing after the date when made or to reflect the occurrence of future events, if any or all of the assumptions underlying the projections are later shown to be in error. For purposes of this paragraph, the term “projections” includes “targeted returns”. Past performance. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. The information presented is only available for institutional client use and is presented for use only as a one-on-one presentation. No reliance, no update and use of information. You may not rely on this Presentation as the basis upon which to make an investment decision. To the extent that you rely on this Presentation in connection with any investment decision, you do so at your own risk. This Presentation is being provided in summary fashion and does not purport to be complete. The information in the Presentation is provided to you as of the dates indicated and Logan Circle does not intend to update the information after its distribution, even in the event that the information becomes materially inaccurate. Certain information contained in this Presentation, includes performance and characteristics of Logan Circle’s strategies and any represented benchmarks, which may derive from calculations or figures that have been provided by independent third parties, or have been prepared internally and have not been audited or verified. Use of different methods for preparing, calculating or presenting information may lead to different results for the information presented, compared to publicly quoted information, and such differences may be material. Knowledge and experience. You acknowledge that you are knowledgeable and experienced with respect to the financial, tax and business aspects of this Presentation and that you will conduct your own independent financial, business, regulatory, accounting, legal and tax investigations with respect to the accuracy, completeness and suitability of this Presentation should you choose to use or rely on this Presentation, at your own risk, for any purpose. Risk of loss. An investment in the strategy will be highly speculative and there can be no assurance that the strategy’s investment objectives will be achieved. Investors must be prepared to bear the risk of a total loss of their investment. Distribution of this Presentation. Logan Circle expressly prohibits any reproduction, in hard-copy, electronic or any other form, or any redistribution to any third party of this Presentation without the prior written consent of Logan Circle. This Presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to local law or regulation. No tax, legal or accounting advice. This Presentation is not intended to provide, and should not be relied upon for (and you shall not construe it as) accounting, legal, regulatory, financial or tax advice or investment recommendations. Any statements of U.S. federal tax consequences contained in this Presentation were not intended to be used and cannot be used to avoid penalties under the U.S. Internal Revenue Code or to promote, market or recommend to another party any tax-related matters addressed herein. Confidentiality. By accepting receipt or reading any portion of this Presentation, you agree that you will treat the Presentation confidentially. This reminder should not be read to limit, in any way, the terms of any confidentiality agreement you or your organization may have in place with Logan Circle. 7 93 QUARTERLY PORTFOLIO REVIEWQUARTERLY PORTFOLIO REVIEW PAYDEN.COM LOS ANGELES | BOSTON | LONDON | PARIS 3rd Quarter 2015 ATTACHMENT 15 94 October 2015 Dear Client, Three months ago when I sat down to pen the last quarterly letter, Greece dominated the headlines. Today almost nobody asks me, “What do you think about a Grexit?” As usual, the lesson is that what the media wants to talk about does not have an enduring impact on your portfolio. As I write this letter I am tempted to comment on what the Federal Reserve might do in the months ahead or on recent Chinese economic and financial market developments, but I am not going to do that. Instead, I want to remind you that even if the Fed acts in 2015 the global economic backdrop remains largely unchanged. Let’s review the major trends. First, inflation has slowed over the last 30 years. In 1980, 92% of countries had inflation over 5%, today only 31% have inflation over 5%. Second, the world is more interconnected than ever before. How do we measure that? We look at exports as a share of global GDP. In 1914, at the peak of the previous era of globalization and on the eve of the First World War, exports’ share of GDP was 16% whereas today it is 32%. So what does all of this mean for your portfolio? Low inflation and slightly slower growth imply low global interest rates, all else equal. Both shorter- and longer-term government bond yields are low, and will likely remain low, regardless of what the Fed does in the next few months. Further, the more globalized the world becomes, the more synchronous the economy. Sure, we can tell you that only 1% of U.S. GDP is generated from exports to China. However, in a hyper-globalized world, we are truly all in it together, and a slowdown in one country or region can reverberate worldwide. Even Federal Reserve officials admitted as much at their September meeting. I’ve witnessed one of the greatest economic development stories in history with the transformation of the global economy over the last 30 years. I suspect some opportunities will present themselves as investors adjust to the next phase of global growth. How does this translate into returns over the next few quarters? In the near term, it is likely that we will experience low single-digit returns. Looking a bit further ahead, a pick-up in the global economy will present opportunities domestically and abroad. The world is positioned for growth over the next decade, and we are cautious but optimistic, focusing our investment philosophy on providing diversification and flexibility for our clients. Best wishes for the autumn, Joan A. Payden President & CEO LETTER FROM THE CEO 95 Riverside County Transportation Commission 2812 ABJ AOC Portfolio Review and Market Update - 3rd Quarter 2015 PORTFOLIO CHARACTERISTICS (As of 9/30/2015) $50.3 millionPortfolio Market Value AA+Weighted Average Credit Quality 1.4 yearsWeighted Average Duration 0.7%Weighted Average Yield to Maturity DURATION DISTRIBUTION 0% 10% 20% 30% 40% 50% 0 - 1 1 - 2 2 - 3 3+ Years SECTOR ALLOCATION 0% 10% 20% 30% 40% 50% 60%TreasuriesCreditAgenciesAsset-BackedLocal AuthorityMoney MarketsTaxable MunicipalBondsPORTFOLIO RETURNS - Periods Ending 9/30/2015 3rd Quarter Since Inception (3/1/15) 0.29% 0.63%RCTC Operating Portfolio 0.31% 0.69%Bank of America Merrill Lynch 1-3 Treasury Periods over one year annualized Payden & Rygel • 333 South Grand Avenue • Los Angeles, California 90071 • (213) 625-1900 • www.payden.com96 Portfolio Review and Market Update - 3rd Quarter 2015 MARKET THEMES Financial markets experienced a flight to quality during the quarter sparked by growth concerns in China and a renewed deterioration across the commodity sector. Risk assets, including all credit-related fixed-income sectors, underperformed U.S. Treasuries. Citing global growth concerns, the Federal Open Market Committee did not increase the Federal Funds rate in September, despite data indicating an improvement in employment and growth. The 2-year Treasury yield ranged between 0.54% and 0.81% intra-quarter, and closed September at 0.63%, demonstrating investor uncertainty regarding the future path of interest rates. STRATEGY The portfolio holds a diversified mix of credit sectors for income generation and is positioned in anticipation of a hike in short-term interest rates by the Federal Reserve before year end. The defensive duration position is structured with less emphasis on 1- to 2-year maturities, as they have the most sensitivity to Fed actions, while maintaining longer duration exposure in corporate bonds to take advantage of their yield premium. Corporates remain attractive, and we continue to participate in the new issue market to take advantage of pricing concessions. Within corporates we favor 3-year fixed-rate bonds. We maintain our allocation to high-quality asset-backed (ABS) with short duration profiles for their yield and diversification benefits. INTEREST RATES Treasury yields declined during the quarter, generating positive returns.n The portfolio’s defensive duration position detracted from performance, as yields generally fell across the curve. n The longer-maturity corporate positions contributed positively despite modest credit spread widening.n SECTORS Credit spreads widened on overall global economic weakness, with the energy, mining and auto sectors faring poorly. The portfolio overweight to credit detracted from performance, while the overweight to the financial sector was positive. n ABS spreads widened due to increased market volatility. The performance impact was neutral as the yield advantage was offset by modestly lower prices. n Payden & Rygel • 333 South Grand Avenue • Los Angeles, California 90071 • (213) 625-1900 • www.payden.com97 Appreciate the History of the Chinese Yuan MARKET PERSPECTIVE 6.0 Yuan Per Dollar (Inverted Axis)6.5 7.0 7.5 8.0 8.5 9.0 1997 2003 2006 20092000 2012 20151994 1 2 3 4 5 6 7 8 Appreciation (yuan buys more dollars) Depreciation (yuan buys fewer dollars) News that China’s currency, the yuan, would be allowed to depreciate against the U.S. dollar rattled global markets in the third quarter. Investors were surprised, and the media labeled the move as an unexpected devaluation. We think the news was overhyped, particularly when viewed historically. In 1994, after years of rapid inflation, Chinese policymakers pegged the currency to the U.S. dollar to promote monetary stability and credibility. The move paid huge economic dividends; China became a mega global trader, foreign investment flowed into the country, the economy blossomed, and the currency appreciated. The August move, where the currency fell by about 4%, is small in the grand scheme of things. Why then, would China take such action? It could have been to boost exports; however, a better explanation might be China’s desire to push the yuan toward global reserve currency status. To achieve that status a free floating currency is required. A history of the Chinese yuan is provided below. After years of inflation, China pegs its currency to the U.S. dollar to bring monetary stability. U.S. Treasury calls China a “currency manipulator.” China joins the World Trade Organization. Yuan is pegged against a basket of currencies; Beijing allows it to strengthen by 2.1% under pressure from the U.S. China stops the appreciation amid slowing exports. U.S./G20 convince China to let the yuan “float.” Policymakers seem to accept that an increase in the currency’s purchasing power will help consumers as part of the transition to consumer led growth. IMF says the yuan is “fairly valued.” The yuan is devalued by 4% and is made more reliant on market forces in the context of an imminent rate hike by the Fed and low export numbers. Source: Federal Reserve Bank of St. Louis, Wall Street Journal, Bloomberg 1 2 3 4 5 6 7 8 98 US DOMICILED MUTUAL FUNDS DUBLIN DOMICILED UCITS FUNDS CASH BALANCE Payden/Kravitz Cash Balance Plan Fund EQUITY Equity Income Fund GLOBAL FIXED INCOME Emerging Markets Bond Fund Emerging Markets Corporate Bond Fund Emerging Markets Local Bond Fund Global Fixed Income Fund Global Low Duration Fund TAX-EXEMPT FIXED INCOME California Municipal Income Fund US FIXED INCOME Absolute Return Bond Fund Cash Reserves Money Market Fund Core Bond Fund Corporate Bond Fund Floating Rate Fund GNMA Fund High Income Fund Limited Maturity Fund Low Duration Fund Strategic Income Fund US Government Fund EQUITY World Equity Fund FIXED INCOME Absolute Return Bond Fund Global Emerging Markets Bond Fund Global Emerging Markets Corporate Bond Fund Global Government Bond Index Fund Global High Yield Bond Fund Global Inflation-Linked Bond Fund Global Bond Fund Global Short Bond Fund Sterling Corporate Bond Fund – Investment Grade US Core Bond Fund USD Low Duration Credit Fund LIQUIDITY FUNDS Euro Liquidity Fund Sterling Reserve Fund US Dollar Liquidity Fund For more information about Payden & Rygel’s, contact us at a location listed below. LOS ANGELES 333 South Grand Avenue Los Angeles, California 90071 213 625-1900 BOSTON 265 Franklin Street Boston, Massachusetts 02110 617 807-1990 LONDON 1 Bartholmew Lane London EC2N 2AX United Kingdom + 44 (0) 20-7621-3000 PARIS Representative Office 54, 56 Avenue Hoche 75008 Paris, France + 33-607-604-441 PAYDEN.COM LOS ANGELES |BOSTON |LONDON |PARIS OVER 30 YEARS OF INSPIRING CONFIDENCE WITH AN UNWAVERING COMMITMENT TO OUR CLIENTS’ NEEDS. 99 COUNTY OF RIVERSIDE TREASURER’S POOLED INVESTMENT FUND IS CURRENTLY RATED: Aaa-bf BY MOODY’S INVESTOR’S SERVICE AND AAA/V1 BY FITCH RATINGS The Treasurer's Pooled Investment Fund is comprised of the County, Schools, Special Districts, and other Discretionary Depositors. County of Riverside Treasurer’s Pooled Investment Fund Capital Markets Team Don Kent Treasurer-Tax Collector Jon Christensen Asst. Treasurer-Tax Collector Giovane Pizano Investment Manager Isela Licea Asst. Investment Manager The primary objective of the treasurer shall be to safeguard the principal of the funds under the treasurer's control, meet the liquidity needs of the depositor, and achieve a return on the funds under his or her control. Investment Objectives 2015September Month End Market Value ($)* Month End Book Value ($) Paper Gain or Loss ($) Paper Gain or Loss (%) Book Yield (%) Yrs to Maturity Modified Duration September 5,735,299,236.42 5,731,768,505.08 3,530,731.34 0.06 0.43 0.93 0.90 August 5,919,900,024.76 5,919,457,634.55 442,390.21 0.01 0.50 1.17 1.14 July 6,376,089,738.27 6,374,589,823.83 1,499,914.44 0.02 0.44 1.05 1.02 June 6,066,709,103.68 6,066,193,436.81 515,666.87 0.01 0.44 1.10 1.07 May 6,231,402,163.99 6,230,332,224.20 1,069,939.79 0.02 0.42 1.09 1.07 April 6,834,465,478.09 6,833,283,754.08 1,181,724.01 0.02 0.40 1.04 1.02 For most of the year, FED Chair Yellen has been telling the financial world that the fall of 2015 will be the time to throw the rate grenade on zero interest rate policy, or ZIRP. Going back to Econ 101, the FED has three man- dates of price stability (inflation), full employment, and, moderate long term interest rates. Their first mandate of price stability is a long way off of 2%, and if anything, the economy as of late is showing more signs of deflation rather than inflation, especially when excluding the vola- tile components of food and energy. One needs to look no further than commodity prices to see this (not count- ing gasoline here in California). The FED’s second man- date of full employment is where things get a little dicier. As we have covered ad nauseam, the U-3 unemploy- ment numbers that are commonly used are not the true gauge of unemployment, as the U-6 total workforce statistics paint an entirely different picture of our employ- ment situation; the latest payroll data is showing signs of weakness causing consternation at the FED. So it seems that Yellen has been among those who wanted to wait for better employment data which has caused con- siderable debate at the FED of when to pull the pin and what the results may be. As for the financial markets, they do not seem to believe the FED and are pricing into the market no rate hike this year, thus a strong rally back in the U.S. equities markets. I firmly believe that the most recent geopolitical events, weakness in the emerging markets, China’s recent melt- down, the looming debt ceiling debate (again) in Wash- ington, and, the 2016 elections all must weigh heavily on Yellen’s mind. The issues in Syria are very pertinent as they could lead to a shooting war between NATO and the West, Russia and the entire Middle East, but at the very least it has delivered to the doorstep of the Europe a humanitarian crisis of epic proportions. An already strained Europe is showing recent signs of huge losses in several of some of their largest banks. China and the emerging market slowdown remains a huge risk, and financial disruptions externally could deliver new worries about global deflation to an already worried FED. Now onward to politics. Over the past several weeks we have been forced to contend with the latest example of congressional infighting and legislative gridlock as the 2015 debt ceiling battle looms ahead. According to Treasury Secretary Jack Lew, “the US will run out of money to pay its bills far sooner than originally expected. “On November 5th, the government would be left with just $30 billion in cash, to be exact, thus underscoring the need to raise the federal borrowing limit.” Lew stat- ed, “Without sufficient cash, it would be impossible for the United States of America to meet all of its obligations for the first time in our history.” This all comes at a time when Speaker of the House Boehner will leave Congress after resigning. More than likely, the result will be the same as in previous years, a last minute kick of the can down the road. This will en- sure that the U.S. doesn't default on its debt obligations and the debt limit will be raised to a new astronomically high number, thus making certain that it remains on track to raise the national debt to even more unsustainable levels; as of this writing, it equates to $51,784 for every man, woman and child living here. The current financial markets environment is unsettled with a lot of complexi- ties baked into the cake, and the prospects for the com- ing year remain in flux. We can be assured of more volatility and we will remain prepared for whatever comes our way. Don Kent Treasurer—Tax Collector “Do You Believe The Fed?” ATTACHMENT 16 100 Value Change Nymex Crude 45.09$ (4.11)$ Gold (USD/OZ)1,115.07$ (19.73)$ Value Change Dow Jones (DJIA)16,284.70$ (243.33)$ S&P 500 Index 1,920.03$ (52.15)$ NASDAQ (NDX)4,181.06$ (595.44)$ Fed Move 10/28/2015 12/16/2015 Decrease to 0.00%84.0%57.1% Increase to 0.25%16.0%37.8% Increase to 0.50%0.0%5.1% Increase to 0.75%0.0%6.7% Increase to 1%0.0%0.0% Current Fed Funds Rate: 0-0.25% Probability for FOMC Dates: Current Market Data Economic Indicators  Stock Indices Commodities  Fed Funds Target Rate COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR US Treasury Curve (M/M) FOMC Meeting Schedule Release %Risk Assessment 29-Jul 0-.25% Growth 17-Sep 0-.25%Growth Release Date Indicator Consensus Actual 09/04/2015 223,000 173,000 09/04/2015 5.2%5.1% 09/24/2015 -2.0%-2.0% 09/25/2015 3.7%3.9% 09/29/2015 96.0 103 09/02/2015 0.9%0.4% 09/16/2015 0.0%-0.1%Consumer Price Index - M/M change: The Consumer Price Index is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Non-Farm Payrolls M/M change: Counts the number of paid employees working part- time or full-time in the nation's business and government establishments. Employment Situation: Measures the number of unemployed as a percentage of the labor force. Durable Goods Orders - M/M change: Reflects the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Real Gross Domestic Product - Q/Q change: The broadest measure of aggregate economic activity and encompasses every sector of the economy.  GDP is the country's most comprehensive economic scorecard. Consumer Confidence: Measures consumer attitudes on present economic conditions and expectations of future conditions. Factory Orders M/M change: Represents the dollar level of new orders for both durable and nondurable goods. 101 Fund Symbol 7 Day Yield Fidelity Prime Institutional MMF FIPXX 0.14% Federated Prime Obligations Fund POIXX 0.10% Wells Fargo Advantage Heritage WFJXX 0.15% Morgan Stanley Institutional Prime Liquidity Fund MPFXX 0.10% JP Morgan CJPXX 0.10% AAA Rated Prime Institutional Money-Market Funds 0.44% 0.44% 0.46%0.43%0.44%0.48%0.46%0.40%0.42%0.44% 0.44% 0.50%0.43% 0.04% 0.05% 0.05%0.06% 0.06% 0.07%0.08%0.09%0.08%0.09%0.10%0.11%0.12% 0.00% 0.50% 1.00% Sep-14 Nov-14 Jan-15 Mar-15 May -15 Jul-15 Sep-15 Pool Yield TIMMI The Pooled Investment Fund cash flow requirements are based upon a 12 month historical cash flow model. Based upon projected cash receipts and maturing investments, there are sufficient funds to meet future cash flow disbursements over the next 12 months. The Treasurer’s Institutional Money Market Index (TIMMI) is compiled and reported by the Riverside County Treasurer’s Capital Markets division. It is a composite index derived from four AAA rated prime institutional money market funds. Similar to the Treasurer’s Office, prime money market funds invest in a diversified portfolio of U.S. dollar denominated money market instruments including U.S. Treasuries, government agencies, commercial paper, certificates of deposits, repurchase agreements, etc. TIMMI is currently comprised of the five multi billion dollar funds listed below. TIMMI COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR 3 Cash Flows Month Monthly Receipts Monthly Disbursements Difference Required Matured Investments Balance Actual Investments Maturing Available to Invest > 1 Year 10/2015 279.31 10/2015 975.00 1,150.00 (175.00) 104.31 1,432.34 11/2015 1,150.00 900.00 250.00 354.31 289.30 12/2015 1,900.00 975.00 925.00 1,279.31 0.00 01/2016 901.94 1,593.66 (691.72)587.59 525.07 02/2016 875.00 1,000.00 (125.00)462.59 659.23 03/2016 1,100.00 970.00 130.00 592.59 25.00 04/2016 1,611.36 970.00 641.36 1,233.95 10.00 05/2016 712.44 1,350.00 (637.56)596.39 639.73 06/2016 1,150.00 1,550.00 (400.00)196.39 449.00 07/2016 1,100.00 1,050.00 50.00 246.39 176.30 08/2016 720.00 950.00 (230.00)16.39 283.00 09/2016 850.00 1,050.00 (200.00) 183.61 - 115.26 TOTALS 13,045.74 13,508.66 (462.92) 183.61 5,949.52 4,604.23 5,548.15 3.20%80.33% 96.80% * All values reported in millions ($). 102 Asset Allocation COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR 4 745,000.00 100.00% 0.10% .003 .003 100,000.00 100.00% 0.08% .003 .003 365.00 100.00% 1.00% 4.712 4.712 410,000.00 100.10% 0.40% .807 .807 347,302.00 100.07% 0.20% .399 .399 614,233.00 100.12% 1.24% 1.561 3.167 359,188.00 100.09% 0.24% .487 .487 263,639.00 100.10% 0.75% 1.843 1.843 349,593.00 100.12% 0.27% .521 .521 583,994.72 100.03% 0.52% .972 1.181 275,000.00 100.12% 0.30% .539 .539 681,616.00 100.03% 0.35% .890 .890 50,000.00 100.21% 0.26% .258 .258 178,850.00 100.10% 0.95% 1.601 2.356 77,834.00 100.05% 0.18% .034 .034 103,275.00 100.00% 0.65% 1.046 1.046 540,000.00 100.03% 0.16% .093 .093 5,733,889.72 100.06% 0.43% .708 .925 274,301.13 274,635.64 178,848.00 179,020.19 681,775.74 539,754.53 539,907.82COMM PAPER 77,829.56 MUNI BONDS 346,793.85 100,000.00 MUNI ZER0 CPNS FARMER MAC 77,790.42 FFCB BONDS FMAC DISC NOTES 584,173.16583,975.80 681,599.51 365.00 365.00 349,189.77 100,000.00 Assets (000's)Scheduled Par FHLMC BONDS 410,086.76 410,480.55 Scheduled Market 615,070.14 358,498.72 347,027.47 Mat (Yr)Mkt/ Sch Book 358,806.35 YieldScheduled Book WAL (Yr) .003 104,192.77 FHLB BONDS FFCB DISC NOTES FNMA BONDS FHLB DISC NOTES 263,577.27 263,843.84 348,779.99 49,878.49 49,981.25 100.00% 0.50% .003 MMKT FHLMC DISC DDA/PASSBK LOCAL AGCY US TREAS BONDS 745,000.00 745,000.00 5,731,768.51 5,735,299.24 CALTRUST FND Totals (000's): 54,000.00 54,000.00 54,000.00 104,192.77 FNMA DISC 614,326.27 103 Maturity Distribution COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR 5 Scheduled Par (000's) 0-1 Mos 1-3 Mos 3-12 Mos 1-2 Yr 2-3 Yr >3 Yr Totals (000's) MMKT 745,000.00 - - - - - 745,000.00 CALTRUST FND 54,000.00 - - - - - 54,000.00 DDA/PASSBK 100,000.00 - - - - - 100,000.00 LOCAL AGCY OBLIG - - - - - 365.00 365 US TREAS BONDS - - 335,000.00 75,000.00 - - 41 0,000.00 FHLMC DISC NOTES 25,000.00 24,302.00 298,000.00 - - - 347,302.00 FHLMC BONDS - - 120,366.00 79,625.00 72,550.00 341,692.00 614,233.00 FNMA DISC NOTES 20,000.00 - 339,188.00 - - - 35 9,188.00 FNMA BONDS 5,000.00 - 96,852.00 22,752.00 119,060.00 19,975.00 263,639.00 FHLB DISC NOTES 4,352.00 - 345,241.00 - - - 349,593.00 FHLB BONDS 48,000.00 - 376,200.00 17,000.00 106,719.72 36,075.00 583,994.72 FFCB DISC NOTES 20,000.00 - 255,000.00 - - - 27 5,000.00 FFCB BONDS 20,000.00 - 536,616.00 75,000.00 - 50,000.00 681,616.00 FMAC DISC NOTES - 25,000.00 25,000.00 - - - 5 0,000.00 FARMER MAC - - 90,000.00 8,850.00 - 80,000.00 178,850.00 MUNI ZERO CPNS 77,834.00 - - - - - 77,834.00 MUNI BONDS 13,155.00 - 65,120.00 - 25,000.00 - 103,275.00 COMM PAPER 250,000.00 290,000.00 - - - - 540 ,000.00 Totals (000's): 1,382,341.00 339,302.00 2,882,583.00 278,227.00 323,329.72 528,107.00 5,733,889.72 %24.11% 5.92% 50.27% 4.85% 5.64% 9.21% Cumulative %24.11% 30.03% 80.30% 85.15% 90.79% 100.00% 104 Credit Quality Book Market 4,971,080.72 4,968,337.90 4,971,455.47 100.06% 5,000.00 4,998.50 5,004.35 100.12% 100,000.00 99,958.29 99,993.25 100.03% 189,904.00 189,836.89 189,885.31 100.03% 138,690.00 139,545.44 139,594.42 100.04% NR 329,215.00 329,091.49 329,366.44 100.08%0.58% 5,733,889.72 5,731,768.51 5,735,299.24 MKT/Book Aa Aa2 1.01% 0.43% 0.14% Yield Aaa Moody (000's)Par 0.18% 0.50% Aa1 100.06%Totals (000's): Aa3 0.43% MOODY’S S & P S&P (000's) AAA 1,139,703.00 1,139,545.58 AA+3,836,377.72 3,833,790.82 AA 337,904.00 338,712.95 AA-90,690.00 90,627.67 NR 329,215.00 329,091.49 Totals (000's): 5,733,889.72 5,731,768.51 3,836,824.46 100.02% 0.52% 0.15%100.01% 0.29% 100.08% 338,796.33 Par Book Market MKT/Book Yield 1,139,635.36 329,366.44 90,676.65 100.05% 5,735,299.24 100.06% 0.43% 0.22% 0.58%100.08% COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR 105 Description Maturity Date Coupon Par Value Book Value Market Price Market Value Unrealized Gain/Loss CALTRUST HERITAGE 10/01/2015 .131 50,000,000.00 50,000,000.00 100.000000 50,000,000.00 0.00 FIDELITY PRIME 10/01/2015 .129 200,000,000.00 200,000,000.00 100.000000 200,000,000.00 0.00 FEDERATED PRIME 10/01/2015 .083 195,000,000.00 195,000,000.00 100.000000 195,000,000.00 0.00 MORGAN STANLEY PRIME 10/01/2015 .085 150,000,000.00 150,000,000.00 100.000000 150,000,000.00 0.00 JP MORGAN PRIME 10/01/2015 .099 150,000,000.00 150,000,000.00 100.000000 150,000,000.00 0.00 .102 745,000,000.00 745,000,000.00 100.000000 745,000,000.00 0.00 CALTRUST SHT TERM 10/01/2015 .502 54,000,000.00 54,000,000.00 100.000000 54,000,000.00 0.00 .502 54,000,000.00 54,000,000.00 100.000000 54,000,000.00 0.00 UB MANAGED RATE 10/01/2015 .080 100,000,000.00 100,000,000.00 100.000000 100,000,000.00 0.00 .080 100,000,000.00 100,000,000.00 100.000000 100,000,000.00 0.00 US DIST COURTHOUSE 06/15/2020 1.000 365,000.00 365,000.00 100.000000 365,000.00 0.00 1.000 365,000.00 365,000.00 100.000000 365,000.00 0.00 U.S. TREASURY BOND 06/30/2017 .750 5,000,000.00 4,971,875.00 100.275000 5,013,750.00 41,875.00 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,971,679.69 100.006000 25,001,500.00 29,820.31 U.S. TREASURY BOND 05/15/2017 .875 25,000,000.00 25,077,148.44 100.506000 25,126,500.00 49,351.56 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,967,773.44 100.006000 25,001,500.00 33,726.56 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,967,773.44 100.006000 25,001,500.00 33,726.56 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,971,679.69 100.006000 25,001,500.00 29,820.31 U.S. TREASURY BOND 01/31/2017 .875 25,000,000.00 25,129,882.81 100.518000 25,129,500.00 -382.81 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,984,375.00 100.006000 25,001,500.00 17,125.00 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,941,406.25 100.006000 25,001,500.00 60,093.75 U.S. TREASURY BOND 05/15/2016 .250 50,000,000.00 49,947,265.63 100.006000 50,003,000.00 55,734.37 U.S. TREASURY BOND 06/15/2016 .500 25,000,000.00 25,049,804.69 100.174000 25,043,500.00 -6,304.69 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,994,140.63 100.006000 25,001,500.00 7,359.37 U.S. TREASURY BOND 06/30/2016 .500 15,000,000.00 15,026,671.80 100.172000 15,025,800.00 -871.80 U.S. TREASURY BOND 05/15/2016 .250 25,000,000.00 24,992,187.50 100.006000 25,001,500.00 9,312.50 U.S. TREASURY BOND 06/15/2016 .500 25,000,000.00 25,034,179.69 100.174000 25,043,500.00 9,320.31 U.S. TREASURY BOND 08/15/2016 .625 20,000,000.00 20,050,320.00 100.229000 20,045,800.00 -4,520.00 U.S. TREASURY BOND 02/15/2017 .625 20,000,000.00 20,008,593.75 100.186000 20,037,200.00 28,606.25 .409 410,000,000.00 410,086,757.45 100.117207 410,480,550.00 393,792.55 FHLMC DISC NOTE 10/21/2015 .145 25,000,000.00 24,979,659.72 99.998000 24,999,500.00 19,840.28 FHLMC DISC NOTE 02/08/2016 .220 25,000,000.00 24,954,472.22 99.938000 24,984,500.00 30,027.78 FHLMC DISC NOTE 02/19/2016 .190 25,000,000.00 24,960,680.50 99.933000 24,983,250.00 22,569.50 FHLMC DISC NOTE 01/20/2016 .170 25,000,000.00 24,968,597.22 99.960000 24,990,000.00 21,402.78 FHLMC DISC NOTE 01/20/2016 .170 25,000,000.00 24,968,597.22 99.960000 24,990,000.00 21,402.78 FHLMC DISC NOTE 01/20/2016 .160 10,000,000.00 9,988,222.22 99.960000 9,996,000.00 7,777.78 FHLMC DISC NOTE 02/19/2016 .190 10,000,000.00 9,987,280.56 99.933000 9,993,300.00 6,019.44 FHLMC DISC NOTE 02/19/2016 .190 10,000,000.00 9,987,333.33 99.933000 9,993,300.00 5,966.67 FHLMC DISC NOTE 02/19/2016 .190 10,000,000.00 9,987,333.33 99.933000 9,993,300.00 5,966.67 FHLMC DISC NOTE 02/19/2016 .180 18,000,000.00 17,978,850.00 99.933000 17,987,940.00 9,090.00 FHLMC DISC NOTE 01/04/2016 .150 25,000,000.00 24,981,250.00 99.966000 24,991,500.00 10,250.00 FHLMC DISC NOTE 01/04/2016 .150 25,000,000.00 24,981,458.33 99.966000 24,991,500.00 10,041.67 FHLMC DISC NOTE 11/30/2015 .095 24,302,000.00 24,293,021.76 99.989000 24,299,326.78 6,305.02 FHLMC DISC NOTE 02/19/2016 .150 25,000,000.00 24,977,291.67 99.933000 24,983,250.00 5,958.33 FHLMC DISC NOTE 06/29/2016 .335 15,000,000.00 14,954,914.58 99.807000 14,971,050.00 16,135.42 FHLMC DISC NOTE 08/31/2016 .390 25,000,000.00 24,901,416.67 99.736000 24,934,000.00 32,583.33 FHLMC DISC NOTE 07/22/2016 .275 25,000,000.00 24,943,472.22 99.783000 24,945,750.00 2,277.78 .196 347,302,000.00 346,793,851.55 99.920953 347,027,466.78 233,615.23 FHLMC 4Yr 11/01/2016 .625 10,000,000.00 9,991,200.00 100.124000 10,012,400.00 21,200.00 FHLMC 3YrNc1YrE 01/15/2016 .450 5,000,000.00 5,000,000.00 100.071000 5,003,550.00 3,550.00 FHLMC 4Yr 11/01/2016 .625 4,625,000.00 4,629,301.25 100.124000 4,630,735.00 1,433.75 FHLMC 1Yr 05/13/2016 .500 25,000,000.00 25,055,500.00 100.107000 25,026,750.00 -28,750.00 FHLMC 2YrNc1YrE 12/30/2016 .750 25,000,000.00 25,000,000.00 100.131000 25,032,750.00 32,750.00 FHLMC 5YrNc3MoB 02/19/2020 1.600 10,000,000.00 10,000,000.00 100.169000 10,016,900.00 16,900.00 FHLMC 2.75YrNc3MoB 11/27/2017 1.125 15,000,000.00 15,000,000.00 100.142000 15,021,300.00 21,300.00 FHLMC 5YrNc3MoB 02/27/2020 1.600 10,000,000.00 10,000,000.00 100.218000 10,021,800.00 21,800.00 FHLMC 5YrNc6MoB 04/20/2020 1.500 7,000,000.00 7,000,000.00 100.075000 7,005,250.00 5,250.00 FHLMC 1Yr 05/13/2016 .500 12,500,000.00 12,516,625.00 100.107000 12,513,375.00 -3,250.00 FHLMC 1Yr 05/27/2016 .400 9,500,000.00 9,502,185.00 100.044000 9,504,180.00 1,995.00 FHLMC 1Yr 05/13/2016 .500 25,000,000.00 25,031,500.00 100.107000 25,026,750.00 -4,750.00 FHLMC 5YrNc3MoB 04/29/2020 1.550 15,000,000.00 15,000,000.00 100.025000 15,003,750.00 3,750.00 FHLMC 1Yr 05/13/2016 .500 6,059,000.00 6,069,239.71 100.107000 6,065,483.13 -3,756.58 FHLMC 5YrNc3MoB 04/29/2020 1.500 13,250,000.00 13,250,000.00 100.096000 13,262,720.00 12,720.00 FHLMC 3YrNc3MoB 04/20/2018 1.250 10,000,000.00 10,000,000.00 100.020000 10,002,000.00 2,000.00 FHLMC 5YrNc3MoB 05/11/2020 1.500 10,000,000.00 10,000,000.00 100.126000 10,012,600.00 12,600.00 FHLMC 1Yr 05/13/2016 .500 27,307,000.00 27,352,602.69 100.107000 27,336,218.49 -16,384.20 FHLMC 5YrNc3MoB 05/21/2020 1.500 5,000,000.00 5,000,000.00 100.173000 5,008,650.00 8,650.00 FHLMC 5YrNc3MoB 04/29/2020 1.550 6,234,000.00 6,234,000.00 100.025000 6,235,558.50 1,558.50 FHLMC 5YrNc3MoB 05/21/2020 1.500 5,190,000.00 5,190,000.00 100.191000 5,199,912.90 9,912.90 FHLMC 5YrNc3MoB 05/27/2020 1.500 5,000,000.00 5,000,000.00 100.183000 5,009,150.00 9,150.00 FHLMC 5YrNc3MoB 05/28/2020 1.625 5,000,000.00 5,000,000.00 100.227000 5,011,350.00 11,350.00 FHLMC 5YrNc3MoB 05/26/2020 1.500 15,000,000.00 15,000,000.00 100.188000 15,028,200.00 28,200.00 FHLMC 5YrNc3MoB 05/27/2020 1.500 5,000,000.00 5,000,000.00 100.183000 5,009,150.00 9,150.00 FHLMC 5YrNc3MoB 05/28/2020 1.700 5,000,000.00 5,000,000.00 100.231000 5,011,550.00 11,550.00 FHLMC 3YrNc3MoB 11/28/2018 1.000 2,275,000.00 2,275,000.00 100.100000 2,277,275.00 2,275.00 FHLMC 5YrNc3MoB 05/28/2020 1.750 6,400,000.00 6,400,000.00 100.213000 6,413,632.00 13,632.00 FHLMC 1Yr 05/13/2016 .500 10,000,000.00 10,017,300.00 100.107000 10,010,700.00 -6,600.00 FHLMC 3YrNc3MoB 05/21/2018 1.200 7,550,000.00 7,534,900.00 100.131000 7,559,890.50 24,990.50 FHLMC 5YrNc3MoB 05/21/2020 1.625 6,000,000.00 6,000,000.00 100.181000 6,010,860.00 10,860.00 FHLMC 3YrNc1.5YrE 06/22/2018 1.200 15,000,000.00 14,986,800.00 100.096000 15,014,400.00 27,600.00 FHLMC 3YrNc6MoE 06/22/2018 1.250 25,000,000.00 24,993,750.00 100.181000 25,045,250.00 51,500.00 FHLMC 5YrNc3MoB 07/21/2020 1.850 10,000,000.00 10,000,000.00 100.092000 10,009,200.00 9,200.00 FHLMC 5YrNc3MoB 07/09/2020 2.000 8,500,000.00 8,500,000.00 100.039000 8,503,315.00 3,315.00 FHLMC 5YrNc3MoB 07/09/2020 2.000 10,000,000.00 10,000,000.00 100.039000 10,003,900.00 3,900.00 FHLMC 5YrNc3MoB 07/29/2020 1.750 5,000,000.00 5,000,000.00 100.109000 5,005,450.00 5,450.00 FHLMC 5YrNc3MoB 07/22/2020 1.850 10,000,000.00 10,000,000.00 100.092000 10,009,200.00 9,200.00 FHLMC 1.5Yr 01/27/2017 .500 25,000,000.00 24,973,250.00 99.981000 24,995,250.00 22,000.00 FHLMC 5YrNc6MoB 08/18/2020 1.900 15,000,000.00 15,000,000.00 100.198000 15,029,700.00 29,700.00 FHLMC 5YrNc3MoB 08/10/2020 1.650 15,000,000.00 15,000,000.00 100.158000 15,023,700.00 23,700.00 FHLMC 5YrNc3MoB 07/30/2020 1.800 10,718,000.00 10,718,000.00 100.129000 10,731,826.22 13,826.22 FHLMC 5YrNc3MoB 08/27/2020 1.900 10,000,000.00 10,000,000.00 100.234000 10,023,400.00 23,400.00 3137EADQ9 3134G5WA9 3134G6AQ6 Month End Portfolio Holdings Yield To Maturity Modified Duration Years To MaturityCUSIP Fund: 1 POOL FUND 313396E25 313396ZS5 .392 .916 .921 .276 3134G7KT7 1.800 4.596 4.836 3134G7QF1 1.900 4.658 4.912 3134G7MZ1 1.900 4.633 4.888 3134G7NV9 1.650 4.643 4.866 3134G7FE6 1.850 4.568 4.814 3137EADU0 .570 1.318 1.329 3134G7CG4 2.000 4.513 4.778 3134G7DQ1 1.750 4.600 4.833 3134G7EG2 1.850 4.565 4.811 3134G7CG4 2.000 4.513 4.778 3134G7AE1 1.230 2.667 2.729 3134G66M0 1.259 2.665 2.729 3134G6WU3 1.268 2.581 2.641 3134G6YA5 1.625 4.428 4.644 3134G6C50 1.750 4.432 4.663 3137EADQ9 .330 .617 .619 3134G6B77 1.700 4.438 4.663 3134G6D59 1.000 3.094 3.164 3134G6ZF3 1.500 4.458 4.658 3134G6YZ0 1.500 4.461 4.660 3134G6YZ0 1.500 4.461 4.660 3134G6YX5 1.625 4.447 4.663 3134G6TV5 1.550 4.377 4.584 3134G6YN7 1.500 4.444 4.644 3137EADQ9 .345 .617 .619 3134G6XJ7 1.500 4.444 4.644 1.250 2.494 2.556 3134G6VG5 1.500 4.417 4.616 .345 .617 .619 3134G6UD3 1.500 4.383 4.584 .385 .617 .619 3134G6TV5 1.550 4.377 4.584 .380 .617 .619 .380 .656 .658 1.600 4.234 4.414 3134G6PB3 1.500 4.359 4.559 1.240 1.252 1.600 4.212 4.392 1.125 2.124 2.162 .750 .600 1.078 1.090 .350 .617 .619 .647 1.078 1.090 3134G33R9 .450 .292 .293 .196 .398 .399 FHLMC BONDS .808 .811 313396TG8 .150 .388 .389 313396YT4 .336 .745 .748 .150 .262 .263 313396PX5 .095 .167 .167 .180 .388 .389 313396RJ4 .150 .262 .263 .190 .388 .389 .190 .388 .389 313396SA2 313396TG8 .160 .306 .307 .190 .388 .389 313396TG8 .170 .306 .307 313396SA2 313396SA2 .190 .388 .389 .170 .306 .307 313396NF6 .145 .057 .058 313396SV6 .220 .358 .359 .396 .803 .808 FHLMC DISC NOTES 912828VR8 .381 .872 .877 912828B74 .596 1.366 1.381 912828VC1 .281 .624 .625 912828VG2 .364 .706 .710 912828VC1 .273 .624 .625 912828WQ9 .345 .747 .751 912828VC1 .329 .623 .625 912828VG2 .321 .706 .710 912828VC1 .292 .623 .625 912828VC1 .418 .623 .625 912828VC1 .324 .623 .625 912828SC5 .641 1.323 1.340 912828VC1 .335 .623 .625 912828WH9 .335 .623 .625 .324 .623 .625 .752 1.606 1.625 US TREAS BONDS .932 1.731 1.751912828TB6 LAO 1.000 2.300 4.712 LOCAL AGCY OBLIG 1.000 2.300 4.712 .080 .003 .003 CASH .003 DDA/PASSBK .080 .003 .003 .003 CLTR .502 .003 .003 .003 .083 .003 .003 .099 .003 .003 WFJXX .131 .003 .003 .085 .003 .003 .129 .003 3134G5RF4 3134G6TQ6 MMKT .102 .003 .502 .003 FIPXX POIXX CALTRUST FND 912828VC1 3134G6BT9 MPFXX CJPXX 912828VC1 313396TG8 313396TG8 3137EADQ9 313396TG8 313396RJ4 3134G3S50 3134G3S50 3134G6DA8 3137EADQ9 3137EADQ9 COUNTY OF RIVERISIDE TREASURER-TAX COLLECTOR 7106 Description Maturity Date Coupon Par Value Book Value Market Price Market Value Unrealized Gain/Loss Month End Portfolio Holdings Yield To Maturity Modified Duration Years To MaturityCUSIP FHLMC 5YrNc3MoB 08/27/2020 1.750 15,000,000.00 15,000,000.00 100.207000 15,031,050.00 31,050.00 FHLMC 5YrNc3MoB 09/04/2020 1.900 10,000,000.00 10,000,000.00 100.163000 10,016,300.00 16,300.00 FHLMC 3.5YrNc6MoE 02/25/2019 1.450 20,000,000.00 20,000,000.00 100.273000 20,054,600.00 54,600.00 FHLMC 3.5YrNc6MoE 02/26/2019 1.450 10,000,000.00 10,000,000.00 100.323000 10,032,300.00 32,300.00 FHLMC 5YrNc3MoB 08/27/2020 1.900 8,475,000.00 8,475,000.00 100.234000 8,494,831.50 19,831.50 FHLMC 1.5Yr 01/27/2017 .500 15,000,000.00 14,980,119.90 99.981000 14,997,150.00 17,030.10 FHLMC 5YrNc3MoB 08/18/2020 1.900 900,000.00 900,000.00 100.198000 901,782.00 1,782.00 FHLMC 5YrNc3MoB 09/14/2020 1.900 10,000,000.00 10,000,000.00 100.219000 10,021,900.00 21,900.00 FHLMC 5YrNc3MoB 09/14/2020 1.850 8,750,000.00 8,750,000.00 100.206000 8,768,025.00 18,025.00 FHLMC 5YrNc3MoB 09/14/2020 1.900 8,000,000.00 8,000,000.00 100.219000 8,017,520.00 17,520.00 FHLMC 5YrNc3MoB 09/24/2020 1.650 15,000,000.00 15,000,000.00 100.210000 15,031,500.00 31,500.00 FHLMC 5YrNc3MoB 09/30/2020 1.750 10,000,000.00 10,000,000.00 100.242000 10,024,200.00 24,200.00 1.255 614,233,000.00 614,326,273.55 100.136290 615,070,140.24 743,866.69 FNMA DISC NOTE 02/22/2016 .240 25,000,000.00 24,945,215.28 99.932000 24,983,000.00 37,784.72 FNMA DISC NOTE 02/22/2016 .245 25,000,000.00 24,945,555.56 99.932000 24,983,000.00 37,444.44 FNMA DISC NOTE 10/28/2015 .120 20,000,000.00 19,987,933.40 99.998000 19,999,600.00 11,666.60 FNMA DISC NOTE 02/22/2016 .180 25,000,000.00 24,963,625.00 99.932000 24,983,000.00 19,375.00 FNMA DISC NOTE 01/19/2016 .175 25,000,000.00 24,969,496.53 99.960000 24,990,000.00 20,503.47 FNMA DISC NOTE 01/19/2016 .145 26,000,000.00 25,975,285.56 99.960000 25,989,600.00 14,314.44 FNMA DISC NOTE 02/22/2016 .140 25,000,000.00 24,977,833.33 99.932000 24,983,000.00 5,166.67 FNMA DISC NOTE 02/22/2016 .160 15,000,000.00 14,985,666.67 99.932000 14,989,800.00 4,133.33 FNMA DISC NOTE 02/22/2016 .160 15,000,000.00 14,986,000.00 99.932000 14,989,800.00 3,800.00 FNMA DISC NOTE 02/22/2016 .160 15,000,000.00 14,986,000.00 99.932000 14,989,800.00 3,800.00 FNMA DISC NOTE 02/16/2016 .155 28,188,000.00 28,163,484.27 99.934000 28,169,395.92 5,911.65 FNMA DISC NOTE 06/13/2016 .340 25,000,000.00 24,926,333.33 99.819000 24,954,750.00 28,416.67 FNMA DISC NOTE 06/13/2016 .370 15,000,000.00 14,952,670.83 99.819000 14,972,850.00 20,179.17 FNMA DISC NOTE 06/13/2016 .370 25,000,000.00 24,921,118.06 99.819000 24,954,750.00 33,631.94 FNMA DISC NOTE 08/15/2016 .400 25,000,000.00 24,905,000.00 99.748000 24,937,000.00 32,000.00 FNMA DISC NOTE 08/15/2016 .400 25,000,000.00 24,907,500.00 99.748000 24,937,000.00 29,500.00 .238 359,188,000.00 358,498,717.82 99.893745 358,806,345.92 307,628.10 FNMA 5Yr 02/04/2016 .339 10,000,000.00 9,990,000.00 100.039000 10,003,900.00 13,900.00 FNMA 3YrNc1YrE 10/22/2015 .500 5,000,000.00 5,001,562.50 100.024000 5,001,200.00 -362.50 FNMA 5YrNc1YrB 12/26/2017 .750 10,000,000.00 10,000,000.00 100.091000 10,009,100.00 9,100.00 FNMA 5YrNc1YrB 12/27/2017 .800 5,000,000.00 5,000,000.00 100.110000 5,005,500.00 5,500.00 FNMA 5YrNc6MoB 01/30/2018 .700 7,200,000.00 7,200,000.00 100.043000 7,203,096.00 3,096.00 FNMA 5YrNc1YrB 01/29/2018 .800 10,000,000.00 10,000,000.00 100.049000 10,004,900.00 4,900.00 FNMA 5YrNc1YrB 01/30/2018 .800 10,000,000.00 10,000,000.00 100.046000 10,004,600.00 4,600.00 FNMA 5YrNc1YrB 01/30/2018 .750 4,500,000.00 4,500,000.00 100.052000 4,502,340.00 2,340.00 FNMA 5YrNc1YrB 02/28/2018 1.000 10,000,000.00 10,000,000.00 100.087000 10,008,700.00 8,700.00 FNMA 5YrNc1YrB 02/28/2018 1.000 5,000,000.00 4,998,500.00 100.087000 5,004,350.00 5,850.00 FNMA 5YrNc6MoB 04/30/2018 .880 10,000,000.00 10,000,000.00 100.045000 10,004,500.00 4,500.00 FNMA 5YrNc6MoB 04/18/2018 1.120 5,610,000.00 5,610,000.00 100.040000 5,612,244.00 2,244.00 FNMA 5YrNc6MoB 05/08/2018 .900 5,000,000.00 5,000,000.00 100.081000 5,004,050.00 4,050.00 FNMA 3.5YrNc6MoB 12/27/2016 .680 12,000,000.00 12,006,600.00 100.044000 12,005,280.00 -1,320.00 FNMA 5YrNc6MoB 04/30/2018 .880 5,000,000.00 5,000,000.00 100.045000 5,002,250.00 2,250.00 FNMA 5YrNc6MoB 05/08/2018 .900 21,750,000.00 21,750,000.00 100.081000 21,767,617.50 17,617.50 FNMA 3.5YrNc1YrB 11/28/2016 .500 10,000,000.00 9,996,000.00 99.965000 9,996,500.00 500.00 FNMA 3.5YrNc1YrB 11/28/2016 .500 752,000.00 739,216.00 99.965000 751,736.80 12,520.80 FNMA 5YrNc6MoB 06/12/2018 1.000 10,000,000.00 9,911,500.00 100.146000 10,014,600.00 103,100.00 FNMA 5YrNc6MoB 02/13/2020 1.500 10,000,000.00 10,000,000.00 100.112000 10,011,200.00 11,200.00 FNMA 5YrNc6MoB 02/20/2020 1.500 9,975,000.00 9,975,000.00 100.142000 9,989,164.50 14,164.50 FNMA 1Yr 07/05/2016 .375 25,000,000.00 24,991,750.00 100.002000 25,000,500.00 8,750.00 FNMA 1.25Yr 09/06/2016 .520 20,255,000.00 20,265,390.82 100.207000 20,296,927.85 31,537.03 FNMA 1.25Yr 08/26/2016 .625 25,000,000.00 25,044,750.00 100.169000 25,042,250.00 -2,500.00 FNMA 10.5Mo 07/05/2016 .375 16,597,000.00 16,597,000.00 100.002000 16,597,331.94 331.94 .742 263,639,000.00 263,577,269.32 100.077697 263,843,838.59 266,569.27 FHLB DISC NOTE 02/02/2016 .240 25,000,000.00 24,950,000.00 99.951778 24,987,944.44 37,944.44 FHLB DISC NOTE 10/14/2015 .150 4,352,000.00 4,348,808.53 99.998556 4,351,937.14 3,128.61 FHLB DISC NOTE 02/26/2016 .215 14,300,000.00 14,273,610.54 99.942444 14,291,769.56 18,159.02 FHLB DISC NOTE 02/09/2016 .200 10,000,000.00 9,983,777.78 99.949056 9,994,905.56 11,127.78 FHLB DISC NOTE 01/29/2016 .200 24,000,000.00 23,964,133.33 99.953333 23,988,800.00 24,666.67 FHLB DISC NOTE 02/11/2016 .210 25,000,000.00 24,959,020.83 99.948278 24,987,069.44 28,048.61 FHLB DISC NOTE 02/02/2016 .190 25,000,000.00 24,964,111.11 99.951778 24,987,944.44 23,833.33 FHLB DISC NOTE 02/11/2016 .210 25,000,000.00 24,959,166.67 99.948278 24,987,069.44 27,902.77 FHLB DISC NOTE 06/02/2016 .300 25,000,000.00 24,923,958.33 99.823056 24,955,763.89 31,805.56 FHLB DISC NOTE 06/03/2016 .310 25,000,000.00 24,921,423.61 99.822333 24,955,583.33 34,159.72 FHLB DISC NOTE 02/03/2016 .200 6,941,000.00 6,931,591.09 99.951389 6,937,625.90 6,034.81 FHLB DISC NOTE 02/26/2016 .240 25,000,000.00 24,957,666.67 99.942444 24,985,611.11 27,944.44 FHLB DISC NOTE 02/10/2016 .200 5,000,000.00 4,994,027.78 99.948667 4,997,433.33 3,405.55 FHLB DISC NOTE 08/05/2016 .400 25,000,000.00 24,898,611.11 99.756000 24,939,000.00 40,388.89 FHLB DISC NOTE 07/15/2016 .380 10,000,000.00 9,963,794.44 99.788000 9,978,800.00 15,005.56 FHLB DISC NOTE 09/06/2016 .450 25,000,000.00 24,886,562.50 99.706000 24,926,500.00 39,937.50 FHLB DISC NOTE 07/06/2016 .390 25,000,000.00 24,918,750.00 99.795000 24,948,750.00 30,000.00 FHLB DISC NOTE 02/09/2016 .200 25,000,000.00 24,980,972.22 99.949056 24,987,263.89 6,291.67 .272 349,593,000.00 348,779,986.54 99.884658 349,189,771.47 409,784.93 FHLB 5YrNc6MoB 05/21/2018 .850 12,000,000.00 12,000,000.00 100.093000 12,011,160.00 11,160.00 FHLB 5YrNC3MoB 05/23/2018 .750 10,000,000.00 10,000,000.00 100.013000 10,001,300.00 1,300.00 FHLB 5YrNc6MoB 05/25/2018 .750 10,000,000.00 10,000,000.00 100.089000 10,008,900.00 8,900.00 FHLB 5YrNc6MoB 05/29/2018 .880 5,000,000.00 5,000,000.00 100.109000 5,005,450.00 5,450.00 FHLB 5YrNc1YrB 06/12/2018 .800 10,000,000.00 10,000,000.00 100.094000 10,009,400.00 9,400.00 FHLB 5YrNc1YrB 06/12/2018 .800 10,000,000.00 10,000,000.00 100.094000 10,009,400.00 9,400.00 FHLB 5YrNc3MoB 06/19/2018 .875 5,000,000.00 5,000,000.00 99.965000 4,998,250.00 -1,750.00 FHLB 5YrNc3MoB 06/19/2018 .875 5,000,000.00 5,000,000.00 99.965000 4,998,250.00 -1,750.00 FHLB 5YrNc3MoB 06/19/2018 .875 5,000,000.00 5,000,000.00 99.965000 4,998,250.00 -1,750.00 FHLB 5YrNc3MoB 06/19/2018 .875 10,000,000.00 10,000,000.00 99.965000 9,996,500.00 -3,500.00 FHLB 5YrNc3MoB 06/20/2018 1.250 3,719,720.08 3,719,720.08 100.164000 3,725,820.42 6,100.34 FHLB 1Yr 01/29/2016 .250 15,000,000.00 15,000,000.00 100.060000 15,009,000.00 9,000.00 FHLB 1Yr 01/29/2016 .250 25,000,000.00 25,000,000.00 100.060000 25,015,000.00 15,000.00 FHLB 2YrNc1YrE 12/30/2016 .750 7,000,000.00 7,000,000.00 100.147000 7,010,290.00 10,290.00 FHLB 1Yr 01/26/2016 .300 25,000,000.00 25,000,000.00 100.051000 25,012,750.00 12,750.00 FHLB 1Yr 02/29/2016 .350 6,500,000.00 6,500,000.00 100.075000 6,504,875.00 4,875.00 FHLB 5YrNc6MoB 01/30/2020 1.500 9,825,000.00 9,825,000.00 100.093000 9,834,137.25 9,137.25 FHLB 1Yr 10/16/2015 .200 4,000,000.00 4,001,040.00 100.004000 4,000,160.00 -880.00 FHLB 7Mo 10/13/2015 .160 25,000,000.00 24,996,587.00 100.002000 25,000,500.00 3,913.00 FHLB 7Mo 10/14/2015 .190 19,000,000.00 19,003,040.00 100.004000 19,000,760.00 -2,280.00 FHLB 10Mo 02/24/2016 .230 10,000,000.00 9,998,700.00 100.029000 10,002,900.00 4,200.00 3136G14Q9 3136G16J3 3135G0XP3 FHLB DISC NOTES FHLB BONDS FNMA DISC NOTES FNMA BONDS 3130A56D6 3136G1C56 3136G1AJ8 3130A3P81 3130A3QU1 313383CP4 313383CP4 3133836N6 3133833J8 313588TK1 313588TK1 313588TK1 313588RZ0 313588NN1 313588TK1 313588TK1 .246 .402 .403 3130A4KB7 .183 .036 .036 .163 .038 .038 .416 1.500 4.170 4.337 3130A34U5 .158 .044 .044 3130A3W42 3130A3VZ4 .750 1.240 1.252 3130A3WE0 .300 .323 .323 .350 .415 3130A3P81 .250 .331 .332 .250 .331 .332 2.675 2.721 .875 2.675 2.721 1.250 2.659 2.723 .875 2.675 2.721 313383CP4 313383EP2 313383CP4 .875 2.675 2.721 .875 .800 2.660 2.701 3133836N6 .800 2.660 2.701 .750 2.615 2.652 3133834M0 .880 2.624 2.663 313382Y31 .850 2.603 2.641 3133833M1 .750 2.610 2.647 .273 .519 .520 313384ZA0 .391 .764 .767 313384SW0 .200 .361 .362 313384ZK8 .381 .788 .792 313384E88 .452 .932 .937 313384SX8 .200 .363 .364 313384A82 .402 .845 .849 313384SQ3 .200 .344 .345 313384TP4 .240 .407 .408 313384XQ7 .301 .671 .674 313384XR5 .311 .674 .677 313384SP5 .190 .342 .342 313384SY6 .210 .366 .367 313384SK6 .200 .331 .332 313384SY6 .210 .366 .367 313384TP4 .215 .407 .408 313384SW0 .200 .361 .362 313384SP5 .240 .341 .342 313384MY2 .150 .038 .038 .748 1.811 1.843 3135G0YE7 .477 .902 .907 .375 .762 .764 3135G0XP3 .405 .761 .764 3133EESQ4 .479 .930 .937 3136G2DQ7 1.500 4.206 4.375 3136G2DW4 1.500 4.226 4.395 3136G1LT4 1.009 1.152 1.164 3136G1MU0 1.302 2.653 2.701 .900 2.564 2.605 .512 1.154 1.164 3136G14F3 .665 1.232 1.244 3136G1KJ7 .880 2.544 2.584 3136G1JW0 1.120 2.508 2.551 3136G1KW8 .900 2.564 2.605 3136G1DA4 1.006 2.374 2.416 3136G1KJ7 .880 2.544 2.584 3136G1AY5 .750 2.306 2.337 3136G1DA4 1.000 2.374 2.416 2.308 2.337 .800 2.302 2.334 .800 2.307 2.337 .700 .750 2.212 2.241 .800 2.217 2.244 .537 .344 .348 .489 .060 .060 .239 .485 .487 .402 .873 .877 313588C29 .401 .873 .877 313588YB5 .371 .701 .704 .371 .701 .704 313588TD7 .155 .380 .381 313588YB5 .341 .701 .704 .160 .396 .397 .160 .396 .397 .140 .396 .397 313588TK1 .160 .396 .397 .175 .303 .304 313588RZ0 .145 .303 .304 .120 .077 .077 .180 .396 .397 .246 .396 .397 313588TK1 .246 .396 .397 1.238 3.039 3.168 3134G7XT3 1.650 4.764 4.989 3134G7YH8 1.750 4.768 5.005 3134G7ST9 1.850 4.711 4.962 3134G7TJ0 1.900 4.704 4.962 1.900 4.633 4.888 3134G7TJ0 1.900 4.704 4.962 3134G7MZ1 3134G7QF1 1.900 4.658 4.912 .592 1.317 1.3293137EADU0 3134G7RU7 1.450 3.304 3.408 3134G7RV5 1.450 3.307 3.411 3134G7QM6 1.750 4.677 4.912 3134G7RL7 1.900 4.677 4.934 3136FP6X0 313588YB5 313588C29 3136G1KW8 3135G0QB2 3136G1AQ2 3136G1LT4 3130A3CC6 COUNTY OF RIVERISIDE TREASURER-TAX COLLECTOR 8107 Description Maturity Date Coupon Par Value Book Value Market Price Market Value Unrealized Gain/Loss Month End Portfolio Holdings Yield To Maturity Modified Duration Years To MaturityCUSIP FHLB 1YrNc6MoE 05/24/2016 .350 10,000,000.00 10,000,000.00 100.010000 10,001,000.00 1,000.00 FHLB 1YrNc6MoE 05/24/2016 .350 10,000,000.00 10,000,000.00 100.010000 10,001,000.00 1,000.00 FHLB 1YrNc6MoE 05/24/2016 .350 15,000,000.00 15,000,000.00 100.010000 15,001,500.00 1,500.00 FHLB 1.25Yr 06/24/2016 .375 25,000,000.00 25,002,650.00 99.904000 24,976,000.00 -26,650.00 FHLB 1YrNc3MB 05/27/2016 .400 10,000,000.00 10,000,000.00 100.032000 10,003,200.00 3,200.00 FHLB 1YrNc3MoB 05/27/2016 .400 25,000,000.00 25,000,000.00 100.005000 25,001,250.00 1,250.00 FHLB 1YrNc3MoB 05/27/2016 .400 25,000,000.00 25,000,000.00 100.032000 25,008,000.00 8,000.00 FHLB 3YrNc3MoB 11/28/2018 1.000 7,142,857.14 7,142,857.14 100.099000 7,149,928.57 7,071.43 FHLB 5YrNc3MoB 05/28/2020 1.500 5,000,000.00 5,000,000.00 100.183000 5,009,150.00 9,150.00 FHLB 1Yr 05/04/2016 .300 15,000,000.00 14,996,250.00 100.014000 15,002,100.00 5,850.00 FHLB 3YrNc3MoB 11/28/2018 1.000 4,107,142.86 4,107,142.86 100.099000 4,111,208.93 4,066.07 FHLB 1YrNc7MoE 06/17/2016 .400 15,000,000.00 15,000,000.00 99.980000 14,997,000.00 -3,000.00 FHLB 1Yr 06/17/2016 .350 25,000,000.00 25,000,000.00 99.991000 24,997,750.00 -2,250.00 FHLB 1Yr 06/17/2016 .350 25,000,000.00 25,000,000.00 99.991000 24,997,750.00 -2,250.00 FHLB 1Yr 06/30/2016 .320 25,000,000.00 24,985,250.00 99.982000 24,995,500.00 10,250.00 FHLB 2YrNc1YrE 07/06/2017 .910 10,000,000.00 10,000,000.00 100.201000 10,020,100.00 20,100.00 FHLB 1Yr 07/28/2016 .375 9,700,000.00 9,697,963.00 99.994000 9,699,418.00 1,455.00 FHLB 1YrNC3MoB 08/30/2016 .500 50,000,000.00 50,000,000.00 99.995000 49,997,500.00 -2,500.00 FHLB 2.5YrNc1YrE 02/26/2018 1.100 15,000,000.00 15,000,000.00 100.053000 15,007,950.00 7,950.00 FHLB 3.25YrNc1YrE 11/26/2018 1.300 10,000,000.00 9,996,800.00 100.513000 10,051,300.00 54,500.00 FHLB 2YrNc3MoB 05/24/2018 1.200 6,000,000.00 5,998,500.00 99.735000 5,984,100.00 -14,400.00 FHLB 1YrNc7MoE 09/09/2016 .510 10,000,000.00 10,004,300.00 100.074000 10,007,400.00 3,100.00 .518 583,994,720.08 583,975,800.08 100.030555 584,173,158.17 197,358.09 FFCB DISC NOTE 10/09/2015 .140 20,000,000.00 19,982,888.89 99.999000 19,999,800.00 16,911.11 FFCB DISC NOTE 01/20/2016 .180 25,000,000.00 24,967,000.00 99.960000 24,990,000.00 23,000.00 FFCB DISC NOTE 01/20/2016 .180 25,000,000.00 24,967,375.00 99.960000 24,990,000.00 22,625.00 FFCB DISC NOTE 01/22/2016 .200 25,000,000.00 24,965,555.56 99.959000 24,989,750.00 24,194.44 FFCB DISC NOTE 01/22/2016 .200 25,000,000.00 24,965,694.44 99.959000 24,989,750.00 24,055.56 FFCB DISC NOTE 02/04/2016 .200 10,000,000.00 9,986,222.22 99.940000 9,994,000.00 7,777.78 FFCB DISC NOTE 02/04/2016 .200 10,000,000.00 9,986,222.22 99.940000 9,994,000.00 7,777.78 FFCB DISC NOTE 06/08/2016 .360 6,086,000.00 6,067,315.98 99.822000 6,075,166.92 7,850.94 FFCB DISC NOTE 07/25/2016 .410 15,000,000.00 14,940,208.50 99.781000 14,967,150.00 26,941.50 FFCB DISC NOTE 07/25/2016 .410 25,000,000.00 24,900,631.94 99.781000 24,945,250.00 44,618.06 FFCB DISC NOTE 06/06/2016 .370 15,000,000.00 14,954,675.00 99.824000 14,973,600.00 18,925.00 FFCB DISC NOTE 06/07/2016 .380 23,914,000.00 23,839,786.89 99.823000 23,871,672.22 31,885.33 FFCB DISC NOTE 09/01/2016 .440 25,000,000.00 24,888,472.22 99.711000 24,927,750.00 39,277.78 FFCB DISC NOTE 09/01/2016 .440 25,000,000.00 24,889,083.33 99.711000 24,927,750.00 38,666.67 .295 275,000,000.00 274,301,132.19 99.867505 274,635,639.14 334,506.95 FFCB 5Yr 04/20/2016 .286 10,000,000.00 9,995,000.00 100.049000 10,004,900.00 9,900.00 FFCB 3YrNC1YrA 12/09/2016 .680 5,000,000.00 4,992,500.00 100.006000 5,000,300.00 7,800.00 FFCB 2Yr 03/03/2016 .375 10,000,000.00 10,001,000.00 100.074000 10,007,400.00 6,400.00 FFCB 1Yr 10/01/2015 .190 20,000,000.00 19,998,400.00 100.000000 20,000,000.00 1,600.00 FFCB 5Yr 10/10/2019 .273 15,000,000.00 15,000,000.00 99.997000 14,999,550.00 -450.00 FFCB 5Yr 10/10/2019 .273 25,000,000.00 25,000,000.00 99.997000 24,999,250.00 -750.00 FFCB 1.25Yr 01/11/2016 .270 25,000,000.00 25,016,250.00 100.044000 25,011,000.00 -5,250.00 FFCB 5Yr 10/10/2019 .273 10,000,000.00 9,997,560.00 99.997000 9,999,700.00 2,140.00 FFCB 1.25Yr 01/29/2016 .230 10,000,000.00 9,997,500.00 100.026000 10,002,600.00 5,100.00 FFCB 1.25Yr 01/29/2016 .230 15,000,000.00 14,996,250.00 100.026000 15,003,900.00 7,650.00 FFCB 1.25Yr 01/29/2016 .230 25,000,000.00 25,000,000.00 100.026000 25,006,500.00 6,500.00 FFCB 1Yr 01/04/2016 .220 25,000,000.00 25,000,000.00 100.028000 25,007,000.00 7,000.00 FFCB 1Yr 01/22/2016 .230 15,070,000.00 15,070,000.00 100.035000 15,075,274.50 5,274.50 FFCB 1Yr 01/21/2016 .240 25,000,000.00 25,000,000.00 100.012000 25,003,000.00 3,000.00 FFCB 1.25Yr 05/06/2016 .350 25,000,000.00 25,000,000.00 99.992000 24,998,000.00 -2,000.00 FFCB 1Yr 02/09/2016 .250 10,000,000.00 10,000,000.00 100.017000 10,001,700.00 1,700.00 FFCB 1Yr 02/02/2016 .250 5,250,000.00 5,248,766.25 100.021000 5,251,102.50 2,336.25 FFCB 3YrNcYr1C 05/13/2016 .375 10,000,000.00 10,000,000.00 100.023000 10,002,300.00 2,300.00 FFCB 1Yr 05/13/2016 .400 12,296,000.00 12,303,807.96 99.988000 12,294,524.48 -9,283.48 FFCB 1.25Yr 05/06/2016 .350 25,000,000.00 25,000,000.00 99.992000 24,998,000.00 -2,000.00 FFCB 1Yr 02/17/2016 .320 15,000,000.00 15,001,500.00 100.040000 15,006,000.00 4,500.00 FFCB 1Yr 02/26/2016 .280 15,000,000.00 15,000,000.00 100.084000 15,012,600.00 12,600.00 FFCB 1Yr 02/26/2016 .280 10,000,000.00 9,998,600.00 100.084000 10,008,400.00 9,800.00 FFCB 1Yr 03/04/2016 .280 15,000,000.00 15,000,000.00 100.039000 15,005,850.00 5,850.00 FFCB 1.25Yr 06/27/2016 .500 25,000,000.00 25,000,000.00 100.103000 25,025,750.00 25,750.00 FFCB 1.25Yr 05/06/2016 .350 25,000,000.00 25,003,750.00 99.992000 24,998,000.00 -5,750.00 FFCB 1.25Yr 05/06/2016 .350 25,000,000.00 25,005,750.00 99.992000 24,998,000.00 -7,750.00 FFCB 1.25Yr 09/16/2016 .450 10,000,000.00 10,000,000.00 99.990000 9,999,000.00 -1,000.00 FFCB NOTES 06/24/2016 .350 25,000,000.00 24,996,250.00 100.020000 25,005,000.00 8,750.00 FFCB 2Yr 04/21/2017 .600 10,000,000.00 10,000,000.00 99.891000 9,989,100.00 -10,900.00 FFCB 1.25Yr 06/24/2016 .350 12,000,000.00 11,996,400.00 100.020000 12,002,400.00 6,000.00 FFCB 1.25Yr 06/24/2016 .350 25,000,000.00 24,995,500.00 100.020000 25,005,000.00 9,500.00 FFCB 2Yr 05/08/2017 .650 15,000,000.00 14,991,000.00 100.031000 15,004,650.00 13,650.00 FFCB 1Yr 05/26/2016 .300 15,000,000.00 15,000,000.00 99.943000 14,991,450.00 -8,550.00 FFCB 1Yr 06/20/2016 .450 7,000,000.00 7,003,780.00 100.017000 7,001,190.00 -2,590.00 FFCB 1.5Yr 01/13/2017 .500 10,000,000.00 10,000,000.00 100.138000 10,013,800.00 13,800.00 FFCB 1Yr 08/11/2016 .400 25,000,000.00 25,000,000.00 99.969000 24,992,250.00 -7,750.00 FFCB 1Yr 08/11/2016 .400 15,000,000.00 15,000,000.00 99.969000 14,995,350.00 -4,650.00 FFCB 1Yr 08/11/2016 .400 15,000,000.00 15,000,000.00 99.969000 14,995,350.00 -4,650.00 FFCB 1Yr 08/11/2016 .400 10,000,000.00 10,000,000.00 99.969000 9,996,900.00 -3,100.00 FFCB 1.5Yr 02/06/2017 .590 10,000,000.00 10,000,000.00 100.182000 10,018,200.00 18,200.00 FFCB 1.5Yr 02/06/2017 .590 10,000,000.00 10,000,000.00 100.182000 10,018,200.00 18,200.00 FFCB 1.5Yr 02/06/2017 .590 15,000,000.00 14,989,950.00 100.182000 15,027,300.00 37,350.00 .349 681,616,000.00 681,599,514.21 100.023436 681,775,741.48 176,227.27 FAMCA DISC NOTE 11/16/2015 .195 25,000,000.00 24,959,375.00 99.992000 24,998,000.00 38,625.00 FAMCA DISC NOTE 02/18/2016 .320 25,000,000.00 24,919,111.11 99.933000 24,983,250.00 64,138.89 .258 50,000,000.00 49,878,486.11 99.962500 49,981,250.00 102,763.89 FAMCA 3Yr 01/28/2016 .425 5,000,000.00 5,000,000.00 100.077000 5,003,850.00 3,850.00 FAMCA 1.5Yr 01/25/2016 .365 25,000,000.00 24,998,000.00 100.071000 25,017,750.00 19,750.00 FAMCA 3Yr 09/05/2017 1.120 8,850,000.00 8,850,000.00 100.727000 8,914,339.50 64,339.50 FAMCA 5YrNc3MoB 02/04/2020 1.550 10,000,000.00 10,000,000.00 100.126000 10,012,600.00 12,600.00 FAMCA 5YrNc3MoB 02/04/2020 1.450 10,000,000.00 10,000,000.00 100.119000 10,011,900.00 11,900.00 FAMCA 5YrNc3MoB 02/04/2020 1.600 15,000,000.00 15,000,000.00 100.123000 15,018,450.00 18,450.00 FAMCA 1Yr 05/24/2016 .400 15,000,000.00 15,000,000.00 100.047000 15,007,050.00 7,050.00 FAMCA 1Yr 02/25/2016 .350 20,000,000.00 20,000,000.00 100.063000 20,012,600.00 12,600.00 FAMCA 5YrNc6MoB 04/01/2020 1.800 15,000,000.00 15,000,000.00 100.000000 15,000,000.00 0.00 FAMCA 5YrNc3MoB 04/20/2020 1.500 15,000,000.00 15,000,000.00 100.065000 15,009,750.00 9,750.00 FAMCA 5YrNc6MoB 05/12/2020 1.500 15,000,000.00 15,000,000.00 100.161000 15,024,150.00 24,150.00 3133EEN89 3133EDNS7 FMAC DISC NOTES 3130A5M30 3133EEZB9 3133EEC40 3133EE4G2 3133EE6A3 3133EE3Y4 3133EE4G2 3133EEC40 3130A66H5 3130A5CK3 3130A5C72 3130A5GD5 3130A5FQ7 3130A5CC1 3130A5AE9 3130A57A1 3132X0AA9 1.500 4.359 4.559 3132X0AB7 1.500 4.419 4.619 31315PT90 .350 .404 .405 31315P3F4 1.800 4.268 4.507 31315PE54 1.600 4.171 4.351 31315PT33 .400 .648 .649 1.550 4.176 4.351 31315PD71 1.450 4.187 4.351 .370 .320 .321 31315P2K4 1.120 1.903 1.934 31315PYY9 .425 .328 .329 .321 .385 .386 .258 .256 .257 31315KPH7 .195 .128 .129 .635 1.341 1.356 .350 .885 .890 .590 1.342 3133EE6A3 1.356 .590 1.342 1.356 .400 .861 .866 .400 .861 .866 .400 .861 .866 .400 .861 .866 .396 .720 .723 .500 1.279 1.290 .680 1.590 1.605 .300 .654 .655 .376 .731 .734 3133EEZR4 .366 .731 .734 .450 .958 .964 .600 1.545 1.559 .742 .336 .598 .600 .329 .598 .600 3133EESJ0 .280 .427 .427 .363 .731 .734 3133EEVB3 .500 .739 3133EERB8 .280 .407 .408 3133EEPT1 3133EEMS6 3133EERB8 .294 .407 .408 .350 .598 .6003133EEMS6 .310 .383 .384 3133ECP99 .375 .617 .619 3133EDSR4 .350 .617 .619 3133EENK2 .250 .361 .362 3133EEMG2 .274 .342 .342 3133EEKU3 .240 .309 .310 3133EEMS6 .350 .598 .600 3133EEEC0 .220 .263 .263 3133EDZ47 .230 .312 .312 3133EDZX3 .250 .331 .332 3133EDZX3 .230 .331 .332 3133EDXQ0 .279 4.008 4.030 3133EDZX3 .250 .331 .332 3133EDXQ0 .273 4.009 4.030 3133EDN40 .218 .282 .282 3133EDWP3 .198 .003 .003 3133EDXQ0 .273 4.009 4.030 3133EDBK7 .731 1.182 1.195 3133EDG63 .370 .424 .425 31331KHV5 .372 .555 .556 FFCB BONDS 313312E30 .442 .919 .923 .295 .537 .539 313312XV7 .381 .685 .688 313312E30 .442 .919 .923 313312ZV5 .412 .815 .819 313312XU9 .371 .682 .685 313312XW5 .361 .687 .690 313312ZV5 .412 .815 .819 313312SR2 .200 .347 .348 313312SR2 .200 .347 .348 313312SC5 .200 .311 .312 313312SC5 .200 .311 .312 313312SA9 .180 .306 .307 313312SA9 .180 .306 .307 313312MT4 .140 .025 .025 FFCB DISC NOTES .469 .938 .945 .521 1.164 1.181 1.310 3.068 3.159 3133836L0 1.209 2.590 2.649 3130A67G6 .500 .913 .918 1.100 2.365 2.411 .910 1.745 1.767 .396 .825 .827 .350 .712 .715 .375 .748 .751 .400 .711 .715 3130A5C80 .350 .712 .715 .325 .593 .595 1.000 3.094 3.164 1.000 3.094 3.164 1.500 4.463 4.663 .400 .656 .658 .400 .656 .658 3133834R9 .366 .731 .734 3130A57A1 .400 .656 .658 3130A57A1 .350 .648 .649 .350 .648 .649 .350 .648 .649 3130A5C72 3133EEMS6 3133EE4G2 3133EE4G2 3130A5C80 3130A5FW4 3130A5FQ7 3130A6BD8 3130A65U7 3133EEJ43 3130A64L8 3133EEC40 3133EE6A3 FARMER MAC 31315KTF7 31315PJ75 31315P7L7 COUNTY OF RIVERISIDE TREASURER-TAX COLLECTOR 9108 Description Maturity Date Coupon Par Value Book Value Market Price Market Value Unrealized Gain/Loss Month End Portfolio Holdings Yield To Maturity Modified Duration Years To MaturityCUSIP FAMCA 1Yr 07/07/2016 .410 25,000,000.00 25,000,000.00 99.951000 24,987,750.00 -12,250.00 .953 178,850,000.00 178,848,000.00 100.095158 179,020,189.50 172,189.50 UC REGENTS 10/05/2015 .170 25,384,000.00 25,370,095.21 99.998111 25,383,520.52 13,425.31 UC REGENTS 10/05/2015 .180 25,000,000.00 24,985,125.00 99.997948 24,999,487.07 14,362.07 UC REGENTS 10/13/2015 .150 5,000,000.00 4,997,520.83 99.995000 4,999,750.00 2,229.17 UC REGENTS 10/28/2015 .190 22,450,000.00 22,437,677.44 99.985750 22,446,800.87 9,123.43 .178 77,834,000.00 77,790,418.48 99.994293 77,829,558.46 39,139.98 LOUISIANA STATE 05/15/2016 .540 12,070,000.00 12,070,000.00 100.000000 12,070,000.00 0.00 TEXAS STATE 10/01/2015 .210 12,465,000.00 12,465,000.00 100.000000 12,465,000.00 0.00 COUNTY OF RIVERSIDE 10/14/2015 .350 690,000.00 690,000.00 100.000000 690,000.00 0.00 STATE OF GEORGIA 02/01/2016 .300 30,050,000.00 30,050,000.00 100.000000 30,050,000.00 0.00 CONNECTICUT ST 08/01/2018 2.250 25,000,000.00 25,613,250.00 102.453000 25,613,250.00 0.00 CONNECTICUT ST 08/01/2016 2.000 23,000,000.00 23,304,520.00 101.324000 23,304,520.00 0.00 1.168 103,275,000.00 104,192,770.00 100.888666 104,192,770.00 0.00 CHEVRON CORP 10/08/2015 .130 50,000,000.00 49,978,513.89 99.996500 49,998,250.00 19,736.11 TOYOTA MOTOR CORP 10/20/2015 .210 50,000,000.00 49,969,666.67 99.990500 49,995,250.00 25,583.33 EXXON MOBIL 10/21/2015 .140 50,000,000.00 49,979,777.78 99.990000 49,995,000.00 15,222.22 CHEVRON CORP 10/21/2015 .140 50,000,000.00 49,979,777.78 99.990000 49,995,000.00 15,222.22 EXXON MOBIL 11/12/2015 .140 50,000,000.00 49,976,666.67 99.979000 49,989,500.00 12,833.33 TOYOTA MOTOR CORP 11/13/2015 .240 40,000,000.00 39,968,000.00 99.978500 39,991,400.00 23,400.00 EXXON MOBILE 11/13/2015 .150 50,000,000.00 49,975,208.33 99.978500 49,989,250.00 14,041.67 WAL-MART 10/30/2015 .140 50,000,000.00 49,983,083.33 99.985500 49,992,750.00 9,666.67 EXXON MOBIL 11/30/2015 .160 50,000,000.00 49,974,444.44 99.963333 49,981,666.67 7,222.23 EXXON MOBIL 11/23/2015 .160 50,000,000.00 49,976,000.00 99.973500 49,986,750.00 10,750.00 WAL-MART 10/29/2015 .140 50,000,000.00 49,993,388.89 99.986000 49,993,000.00 -388.89 .158 540,000,000.00 539,754,527.78 99.982929 539,907,816.67 153,288.89 .439 5,733,889,720.08 5,731,768,505.08 100.024582 5,735,299,236.42 3,530,731.34 .439 5,733,889,720.08 5,731,768,505.08 100.024582 5,735,299,236.42 3,530,731.34 COMM PAPER Total Fund Grand Total MUNI ZER0 CPNS .428 .904 .926 93114FXV1 .158 .093 .093 .428 .904 .926 .160 .148 .148 .140 .079 .079 93114FXW9 .140 .082 .082 .160 .167 .16730229BYW1 89233HYD0 .240 .120 .121 30229BYD3 .150 .120 .121 .140 .057 .058 30229BYC5 .140 .118 .118 16677KXM0 89233HXL3 .210 .055 .055 .140 .057 .05830229BXM4 16677KX81 .130 .022 .022 .600 .829 .838 .655 1.029 1.056 20772JK92 3733842H8 .300 .338 .340 20772JL34 1.398 2.739 2.838 882723PH6 .210 .003 .003 76914AAG7 .350 .038 .038 546415L73 .540 .622 .625 MUNI BONDS 91411UXU4 .190 .077 .077 .179 .034 .034 91411UX83 .185 .014 .014 91411UXD2 .150 .036 .036 91411UX59 .170 .014 .014 3132X0AY7 .410 .767 .770 .954 2.267 2.357 30229BYP6 COUNTY OF RIVERISIDE TREASURER-TAX COLLECTOR 10109 1 Mutual Funds maturity may be interpreted as weighted average maturity not exceeding 60 days. 2 Or must have an investment advisor with not less than 5 years experience and with assets under management of $500,000,000. THIS COMPLETES THE REPORT REQUIREMENTS OF CALIFORNIA GOVERNMENT C0DE 53646 Investment Category Maximum Maturity Authorized % Limit S&P/ Moody's Maximum Maturity Authorized % Limit S&P/ Moody's Actual % MUNICIPAL BONDS (MUNI) 5 YEARS NO LIMIT NA 3 YEARS 15% AA-/Aa3/AA-3.17% U.S. TREASURIES 5 YEARS NO LIMIT NA 5 YEARS 100%NA 7.15% LOCAL AGENCY OBLIGATIONS (LAO) 5 YEARS NO LIMIT NA 3 YEARS 2.5% INVESTMENT GRADE 0.01% FEDERAL AGENCIES 5 YEARS NO LIMIT AAA 5 YEARS 100%NA 64.56% COMMERCIAL PAPER (CP)270 DAYS 40% A1/P1 270 DAYS 40%A1/P1/F1 9.43% CERTIFICATE & TIME DEPOSITS (NCD & TCD) 5 YEARS 30% NA 1 YEAR 25% Combined A1/P1/F1 0.00% REPURCHASE AGREEMENTS (REPO) 1 YEARS NO LIMIT NA 45 DAYS 40% max, 25% in term repo over 7 days A1/P1/F1 0.00% REVERSE REPOS 92 DAYS 20% NA 60 DAYS 10%NA 0.00% MEDIUM TERM NOTES (MTNO) 5 YEARS 30% A 3 YEARS 20%AA/Aa2/AA 0.00% CALTRUST SHORT TERM FUND NA NA NA DAILY LIQUIDITY 1.0% NA 0.94% MONEY MARKET MUTUAL FUNDS (MMF) 60 DAYS (1)20% AAA/Aaa (2) DAILY LIQUIDITY 20% AAA by 2 Of 3 RATINGS AGC. 13.00% LOCAL AGENCY INVESTMENT FUND (LAIF) NA NA NA DAILY LIQUIDITY Max $50 million NA 0.00% CASH/DEPOSIT ACCOUNT NA NA NA NA NA NA 1.74% The Treasurer’s Pooled Investment Fund was in FULL COMPLIANCE with the Treasurer’s Statement of Investment Policy. The County’s Investment Policy is more restrictive than the Califor- nia Government Code. This policy is reviewed annually by the County’s Investment Oversight Committee and approved by the County Board of Supervisors. Full Compliance COUNTY OF RIVERSIDE TREASURER-TAX COLLECTOR 13 110 AGENDA ITEM 8G RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: December 9, 2015 TO: Riverside County Transportation Commission FROM: Mark Lancaster, Right of Way Manager THROUGH: Anne Mayer, Executive Director SUBJECT: Agreements for On-Call Right of Way Phase I and Phase II Environmental Assessment Services STAFF RECOMMENDATION: This item is for the Commission to: 1) Award the following agreements to provide on-call right of way phase I and phase II environmental assessment services for a three-year term, in an amount not to exceed an aggregate value of $300,000; a) Agreement No. 16-31-002-00 with The Converse Professional Group (Converse); b) Agreement No. 16-31-027-00 with Leighton Consulting, Inc (Leighton); and c) Agreement No. 16-31-028-00 with Ninyo & Moore Geotechnical & Environmental Sciences Consultants (Ninyo & Moore); 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreements on behalf of the Commission; and 3) Authorize the Executive Director, or designee, to execute task orders awarded to contractors under the terms of the agreements. BACKGROUND INFORMATION: The presence of hazardous substances within proposed rights of way and facilities for various Commission rail and highway projects is probable. It is, therefore, necessary for the Commission to exercise due diligence in identifying hazardous materials and potential hazardous substance related problems. Performing early testing of known or potentially contaminated sites may avoid or, at least, minimize costs and schedule delays on Commission projects. On-call consultants will be required to furnish environmental engineering services and field services including, but not limited to, site assessments and investigations, remedial investigation/feasibility studies, remediation action plans, remediation action design, post- remediation monitoring at specified sites, hazardous waste remediation, abatement, and removal of materials. Agenda Item 8G 111 Phase I – Initial site assessment shall include, but not be limited to, identifying hazardous and potentially hazardous problems. Phase II – Site investigations shall include, but not be limited to, items such as work plans, health and safety plans, surveys and surface geophysical investigations, drilling, sampling, laboratory analysis, and reporting. Procurement Process Pursuant to Government Code 4525 et seq, selection of architectural, engineering, and related services, including construction project management, shall be on the basis of demonstrated competence and on professional qualifications necessary for the satisfactory performance of the services required. Therefore, staff used the qualification method of selection for the procurement of these services. Request for Qualifications (RFQ) No. 16-31-002-00 for on-call right of way phase I and phase II environmental assessment services was released by staff on August 6, 2015. A public notice was advertised in the Press Enterprise, and the RFP was posted on the Commission’s PlanetBids website, which is accessible through the Commission’s website. Utilizing PlanetBids, emails were sent to 218 firms, 26 of which are located in Riverside County. Through the PlanetBids site, 75 firms downloaded the RFP; 14 of these firms are located in Riverside County. Staff responded to all questions submitted by potential proposers prior to the August 27 clarification deadline date. Eight firms – Converse (Monrovia); E2 Manage Tech (Long Beach); Earth Systems (Bermuda Dunes); Gannett Fleming, Inc. (Los Angeles); Group Delta Consultants, Inc. (Irvine); Krazan & Associates, Inc. (Bakersfield); Leighton (Irvine); and Ninyo & Moore (Irvine) – submitted statements of qualifications prior to the 2:00 p.m. submittal deadline on September 10. Utilizing the evaluation criteria set forth in the RFQ, all eight firms were evaluated and scored by an evaluation committee comprised of Commission and Bechtel staff. Accordingly, the evaluation committee recommends contract award to Converse; Leighton; and Ninyo & Moore, as these firms earned the highest total evaluation scores. The multiple award, on-call, indefinite delivery/indefinite quantity task order type contracts do not guarantee work to any of the awardees; therefore, no funds are guaranteed to any consultant. Pre-qualified consultants will be selected for specific tasks based on information contained in their proposals and/or competitive fee proposals for the specific tasks. Services will be provided through the Commission’s issuance of contract task orders to the consultants on an as-needed basis. The Commission’s standard form professional services agreement will be entered into with the consultants subject to any changes approved by the Executive Director, and pursuant to legal counsel review. Staff oversight of the contract will maximize the effectiveness of the consultants and minimize costs to the Commission. Agenda Item 8G 112 Financial Information In Fiscal Year Budget: Yes N/A Year: FY 2015/16 FY 2016/17+ Amount: $ 50,000 $250,000 Source of Funds: Measure A, State Transportation Improvement Program, Federal, Transportation Uniform Mitigation Fees Budget Adjustment: No N/A GL/Project Accounting No.: 002302 81403 00067 0000 210 73 81403 003005 81403 00067 0000 222 31 81403 003021 81403 00067 0000 262 31 81403 003027 81403 00067 0000 262 31 81403 003029 81403 00067 0000 262 31 81403 005127 81403 00067 0000 210 72 81403 332402 81403 00067 0000 221 33 81403 312402 81403 00067 0000 222 31 81403 622402 81403 00067 0000 262 31 81403 Fiscal Procedures Approved: Date: 11/10/2015 Attachment: Standard Form On-Call Professional Services Agreement Agenda Item 8G 113 AGREEMENT NO. 16-31-002-00 PROFESSIONAL SERVICES AGREEMENT WITH FHWA AND/OR FTA FUNDING/ASSISTANCE RIVERSIDE COUNTY TRANSPORTATION COMMISSION AGREEMENT WITH [CONSULTANT] FOR ON-CALL RIGHT OF WAY PHASE I & PHASE II ENVIRONMENTAL ASSESSMENT SERVICES 1.0 PARTIES AND DATE. This Agreement is made and entered into this ___ day of _______, 2015, by and between the RIVERSIDE COUNTY TRANSPORTATION COMMISSION ("the Commission") and [NAME OF FIRM] ("Consultant"), a [LEGAL STATUS OF CONSULTANT, e.g., California corporation]. 2.0 RECITALS. 2.1 On November 8, 1988 the voters of Riverside County approved Measure A authorizing the collection of a one-half percent (1/2 %) retail transactions and use tax (the "Tax") to fund transportation programs and improvements within the County of Riverside, and adopting the Riverside County Transportation Improvement Plan (the "Plan"). 2.2 Pursuant to Public Utility Code Sections 240000 et seq., the Commission is authorized to allocate the proceeds of the Tax in furtherance of the Plan. 2.3 On November 5, 2002, the voters of Riverside County approved an extension of the Measure A tax for an additional thirty (30) years for the continued funding of transportation and improvements within the County of Riverside. 2.4 A source of funding for payment for professional services provided under this Agreement may be federal funds from the United States Department of Transportation. This Commission may withhold payment of any federal funds hereunder until the certification shown in Exhibit “F” attached hereto and incorporated herein by reference, is executed. 2.5 Consultant desires to perform and assume responsibility for the provision of certain professional services required by the Commission on the terms and 17336.00023\9602162.1 114 conditions set forth in this Agreement and in the task order(s) to be issued pursuant to this Agreement and executed by the Commission and the Consultant (“Task Order”). Consultant represents that it is experienced in providing on-call [INSERT DESCRIPTION OF SERVICES] services to public clients, is licensed in the State of California (if necessary), and is familiar with the plans of the Commission. 2.6 The Commission desires to engage Consultant to render such services on an on-call basis. Services shall be ordered by Task Order(s) to be issued pursuant to this Agreement for future projects as set forth herein (each such project shall be designated a “Project” under this Agreement). 3.0 TERMS. 3.1 General Scope of Services. Consultant shall furnish all technical and professional services, including labor, material, equipment, transportation, supervision and expertise, and incidental and customary work necessary to fully and adequately supply the professional on-call [INSERT DESCRIPTION OF SERVICE] necessary for the Project ("Services"). The Services are more generally described in Exhibit "A" attached hereto and incorporated herein by reference. The Services shall be more particularly described in the individual Task Orders issued by the Commission’s Executive Director or designee. No Services shall be performed unless authorized by a fully executed Task Order. All Services shall be subject to, and performed in accordance with, this Agreement, the relevant Task Order, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.2 Commencement of Services. The Consultant shall commence work within five (5) days of receiving a fully executed Task Order from Commission. 3.2.1 In the event federal funding will be used for any Task Order, and to the extent Caltrans procedures apply in connection therewith, issuance of a “Notice to Proceed” on the Task Order or written authorization by the Commission’s designated project manager may be contingent upon completion and approval of a pre-award audit. Any questions raised during the pre-award audit for the Task Order shall be resolved before the Commission will consider approval of the Task Order. Any federal aid provided under a Task Order is contingent on meeting all federal requirements and could be withdrawn, thereby entitling the Commission to terminate the Task Order, if the procedures are not completed. Consultant’s files shall be maintained in a manner to facilitate Federal and State process reviews. In addition, the applicable federal agency, or Caltrans acting on behalf of a federal agency, may require that prior to performance of any work for which federal reimbursement is requested and provided, that said federal agency or Caltrans must give to Commission an “Authorization to Proceed”. If any post-Task Order award audit recommendations are received by the Commission from Caltrans, Consultant shall make all necessary adjustments to conform to the audit recommendations. Refusal by Consultant to incorporate the interim audit or post-Task Order award recommendations of Caltrans will be considered a breach of the Task Order and this Agreement and cause for termination or suspension of the Services. 2 17336.00023\9602162.1 115 3.3 Term. The term of this Agreement shall be from the date first set forth above or the date of issuance of the Notice to Proceed by the Commission, whichever occurs first, to the later of February 1, 2019, or the date on which all Services under a Task Order issued prior to the foregoing date have been completed, unless earlier terminated as provided herein. No Task Orders will be issued after [INSERT AGREEMENT EXPIRATION DATE]. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines set forth in the Task Orders. All applicable indemnification provisions of this Agreement shall remain in effect following the termination of this Agreement. Notwithstanding the foregoing, Caltrans and/or FHWA funded Task Orders shall be completed within thirty-six (36) months of the Effective Date, unless approval of Caltrans is obtained from the Commission. 3.4 Commission's Representative. The Commission hereby designates the [INSERT NAME OR TITLE], or his or her designee, to act as its Representative for the performance of this Agreement ("Commission’s Representative"). Commission’s Representative shall have the authority to act on behalf of the Commission for all purposes under this Agreement. Commission's Representative shall also review and give approval, as needed, to the details of Consultant's work as it progresses. Consultant shall not accept direction or orders from any person other than the Commission’s Representative or his or her designee. 3.5 Consultant's Representative. Consultant hereby designates [INSERT NAME OR TITLE], or his or her designee, to act as its Representative for the performance of this Agreement ("Consultant’s Representative"). Consultant's Representative shall have full authority to act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his professional skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement and as described in the relevant Task Order. Consultant shall work closely and cooperate fully with Commission's Representative and any other agencies which may have jurisdiction over, or an interest in, the Services. Consultant's Representative shall be available to the Commission staff at all reasonable times. Any substitution in Consultant's Representative shall be approved in writing by Commission's Representative. 3.6 Substitution of Key Personnel. Consultant has represented to the Commission that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval by the Commission. In the event that the Commission and Consultant cannot agree as to the substitution of the key personnel, the Commission shall be entitled to terminate this Agreement for cause, pursuant to the provisions of Section 3.14. The key personnel for performance of this Agreement are: [INSERT NAME(S)] 3 17336.00023\9602162.1 116 3.7 Preliminary Review of Work. All reports, working papers, and similar work products prepared for submission in the course of providing Services under this Agreement shall be submitted to the Commission's Representative in draft form, and the Commission may require revisions of such drafts prior to formal submission and approval. In the event plans and designs are to be developed as part of the Project, final detailed plans and designs shall be contingent upon obtaining environmental clearance as may be required in connection with Federal funding. In the event that Commission's Representative, in his sole discretion, determines the formally submitted work product to be not in accordance with the standard of care established under this contract, Commission's Representative may require Consultant to revise and resubmit the work at no cost to the Commission. 3.8 Appearance at Hearings. If and when required by the Commission, Consultant shall render assistance at public hearings or other meetings related to the Project or necessary to the performance of the Services. However, Consultant shall not be required to, and will not, render any decision, interpretation or recommendation regarding questions of a legal nature or which may be construed as constituting a legal opinion. 3.9 Standard of Care; Licenses. Consultant represents and maintains that it is skilled in the professional calling necessary to perform all Services, duties and obligations required by this Agreement to fully and adequately complete the Project. Consultant shall perform the Services and duties in conformance to and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California during the term of this Agreement. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Consultant further represents and warrants to the Commission that its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the Commission, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein, and shall be fully responsible to the Commission for all damages and other liabilities provided for in the indemnification provisions of this Agreement arising from the Consultant’s errors and omissions. Any employee of Consultant or its sub-consultants who is determined by the Commission to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the Commission, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.10 Opportunity to Cure. Commission may provide Consultant an opportunity to cure, at Consultant's expense, all errors and omissions which may be disclosed during Project implementation. Should Consultant fail to make such correction in a 4 17336.00023\9602162.1 117 timely manner, such correction may be made by the Commission, and the cost thereof charged to Consultant. 3.11 Inspection of Work. Consultant shall allow the Commission's Representative to inspect or review Consultant's work in progress at any reasonable time. 3.12 Final Acceptance. Upon determination by the Commission that Consultant has satisfactorily completed the Services required under this Agreement and within the term set forth in Section 3.3, the Commission shall give Consultant a written Notice of Final Acceptance. Upon receipt of such notice, Consultant shall incur no further costs hereunder, unless otherwise specified in the Notice of Final Acceptance. Consultant may request issuance of a Notice of Final Acceptance when, in its opinion, it has satisfactorily completed all Services required under the terms of this Agreement. In the event copyrights are permitted under this Agreement, then in connection with Federal funding, it is hereby acknowledged and agreed that the United States Department of Transportation shall have the royalty-free non-exclusive and irrevocable right to reproduce, publish, or otherwise use, and to authorize others to use, the work for governmental purposes. 3.13 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. For example, and not by way of limitation, Consultant shall keep itself fully informed of and in compliance with all implementing regulations, design standards, specifications, previous commitments that must be incorporated in the design of the Project, and administrative controls including those of the United States Department of Transportation. Compliance with Federal procedures may include completion of the applicable environmental documents and approved by the United States Department of Transportation. For example, and not by way of limitation, a signed Categorical Exclusion, Finding of No Significant Impact, or published Record of Decision may be required to be approved and/or completed by the United States Department of Transportation. For Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the Commission, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold Commission, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations. 3.14 Termination. 3.14.1 Notice; Reason. Commission may, by written notice to Consultant, terminate this Agreement, in whole or in part, at any time by giving written notice to Consultant of such termination, and specifying the effective date thereof (“Notice of Termination”). Such termination may be for Commission's convenience or because of 5 17336.00023\9602162.1 118 Consultant's failure to perform its duties and obligations under this Agreement, including, but not limited to, the failure of Consultant to timely perform Services pursuant to the Schedule of Services described in Section 3.15 of this Agreement. Consultant may not terminate this Agreement except for cause. 3.14.2 Discontinuance of Services. Upon receipt of the written Notice of Termination, Consultant shall discontinue all affected Services as directed in the Notice or as otherwise provided herein and shall deliver to the Commission all Documents and Data, as defined in this Agreement, as may have been prepared or accumulated by Consultant in performance of the Services, whether completed or in progress. 3.14.3 Effect of Termination For Convenience. If the termination is to be for the convenience of the Commission, the Commission shall compensate Consultant for Services fully and adequately provided through the effective date of termination. Such payment shall include a prorated amount of profit, if applicable, but no amount shall be paid for anticipated profit on unperformed Services. Consultant shall provide documentation deemed adequate by Commission's Representative to show the Services actually completed by Consultant prior to the effective date of termination. This Agreement shall terminate on the effective date of the Notice of Termination. 3.14.4 Effect of Termination for Cause. If the termination is for cause, Consultant shall be compensated for those Services which have been fully and adequately completed and accepted by the Commission as of the date the Commission provides the Notice of Termination. In such case, the Commission may take over the work and prosecute the same to completion by contract or otherwise. Further, Consultant shall be liable to the Commission for any reasonable additional costs incurred by the Commission to revise work for which the Commission has compensated Consultant under this Agreement, but which the Commission has determined in its sole discretion needs to be revised, in part or whole, to complete the Project because it did not meet the standard of care established in Section 3.9. Termination of this Agreement for cause may be considered by the Commission in determining whether to enter into future agreements with Consultant. 3.14.5 Cumulative Remedies. The rights and remedies of the Parties provided in this Section are in addition to any other rights and remedies provided by law or under this Agreement. 3.14.6 Procurement of Similar Services. In the event this Agreement is terminated, in whole or in part, as provided by this Section, the Commission may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated. 3.14.7 Waivers. Consultant, in executing this Agreement, shall be deemed to have waived any and all claims for damages which may otherwise arise from the Commission's termination of this Agreement, for convenience or cause, as provided in this Section. 6 17336.00023\9602162.1 119 3.15 Schedule and Progress of Services. 3.15.1 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with any specific schedule that shall be set forth in the Task Order (“Schedule of Services”). Consultant represents that it has the professional and technical personnel to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with each Schedule, the Commission shall respond to Consultant's submittals in a timely manner. Upon request of Commission's Representative, Consultant shall provide a more detailed schedule of anticipated performance to meet the relevant Schedule of Services. 3.15.2 Modification of the Schedule. Consultant shall regularly report to the Commission, through correspondence or progress reports, its progress in providing required Services within the scheduled time periods. Commission shall be promptly informed of all anticipated delays. In the event that Consultant determines that a schedule modification is necessary, Consultant shall promptly submit a revised Schedule of Services for approval by Commission's Representative. 3.15.3 Trend Meetings. Consultant shall conduct trend meetings with the Commission’s Representative and other interested parties, as may be requested by the Commission. These trend meetings will encompass focused and informal discussions concerning scope, schedule, and current progress of Services, relevant cost issues, and future Project objectives. Consultant shall be responsible for the preparation and distribution of meeting agendas to be received by the Commission and other attendees no later than three (3) working days prior to the meeting. 3.15.4 Progress Reports. As part of its monthly invoice, Consultant shall submit a progress report, in a form determined by the Commission, which will indicate the progress achieved during the previous month in relation to the relevant Schedule of Services, as applicable. If applicable, submission of such progress report by Consultant shall be a condition precedent to receipt of payment from the Commission for each monthly invoice submitted. 3.16 Delay in Performance. 3.16.1 Excusable Delays. Should Consultant be delayed or prevented from the timely performance of any act or Services required by the terms of the Agreement by reason of acts of God or of the public enemy, acts or omissions of the Commission or other governmental agencies in either their sovereign or contractual capacities, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes or unusually severe weather, performance of such act shall be excused for the period of such delay. 3.16.2 Written Notice. If Consultant believes it is entitled to an extension of time due to conditions set forth in subsection 3.16.1, Consultant shall provide written notice to the Commission within seven (7) working days from the time Consultant 7 17336.00023\9602162.1 120 knows, or reasonably should have known, that performance of the Services will be delayed due to such conditions. Failure of Consultant to provide such timely notice shall constitute a waiver by Consultant of any right to an excusable delay in time of performance. 3.16.3 Mutual Agreement. Performance of any Services under this Agreement may be delayed upon mutual agreement of the Parties. Upon such agreement, Consultant's Schedule of Services shall be extended as necessary by the Commission. Consultant shall take all reasonable steps to minimize delay in completion, and additional costs, resulting from any such extension. 3.17 Status of Consultant/Subconsultants; Assignment; Transfer. 3.17.1 Independent Contractor. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. Commission retains Consultant on an independent contractor basis and not as an employee, agent or representative of the Commission. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries and other amounts due such personnel in connection with their performance of Services and as required by law. Consultant shall be responsible for all reports and obligations respecting such personnel, including but not limited to, social security taxes, income tax withholdings, unemployment insurance, disability insurance, and workers' compensation insurance. 3.17.2 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein, without the prior written consent of the Commission. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.17.3 Subcontracting. Consultant shall not subcontract any portion of the work or Services required by this Agreement, except as expressly stated herein, without prior written approval of the Commission. If Consultant wishes to use a firm as a subcontractor which is not specified in the proposal upon which this Agreement was awarded, prior written approval must be obtained from the Commission. The Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.18 Ownership of Materials/Confidentiality. 3.18.1 Documents & Data. This Agreement creates an exclusive and perpetual license for Commission to copy, use, modify, reuse, or sub-license any and all copyrights and designs embodied in plans, specifications, studies, drawings, estimates, materials, data and other documents or works of authorship fixed in any tangible 8 17336.00023\9602162.1 121 medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subcontractors to agree in writing that Commission is granted an exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to grant the exclusive and perpetual license for all such Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the Commission. Commission shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at Commission’s sole risk. 3.18.2 Intellectual Property. In addition, Commission shall have and retain all right, title and interest (including copyright, patent, trade secret and other proprietary rights) in all plans, specifications, studies, drawings, estimates, materials, data, computer programs or software and source code, enhancements, documents, and any and all works of authorship fixed in any tangible medium or expression, including but not limited to, physical drawings or other data magnetically or otherwise recorded on computer media (“Intellectual Property”) prepared or developed by or on behalf of Consultant under this Agreement as well as any other such Intellectual Property prepared or developed by or on behalf of Consultant under this Agreement. The Commission shall have and retain all right, title and interest in Intellectual Property developed or modified under this Agreement whether or not paid for wholly or in part by Commission, whether or not developed in conjunction with Consultant, and whether or not developed by Consultant. Consultant will execute separate written assignments of any and all rights to the above referenced Intellectual Property upon request of Commission. Consultant shall also be responsible to obtain in writing separate written assignments from any subcontractors or agents of Consultant of any and all right to the above referenced Intellectual Property. Should Consultant, either during or following termination of this Agreement, desire to use any of the above-referenced Intellectual Property, it shall first obtain the written approval of the Commission. All materials and documents which were developed or prepared by the Consultant for general use prior to the execution of this Agreement and which are not the copyright of any other party or publicly available and any other computer applications, shall continue to be the property of the Consultant. However, unless otherwise identified and stated prior to execution of this Agreement, Consultant represents and warrants that it has the right to grant the exclusive and perpetual license for all such Intellectual Property as provided herein. Commission further is granted by Consultant a non-exclusive and perpetual license to copy, use, modify or sub-license any and all Intellectual Property otherwise owned by 9 17336.00023\9602162.1 122 Consultant which is the basis or foundation for any derivative, collective, insurrectional, or supplemental work created under this Agreement. 3.18.3 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of Commission, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Commission's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Commission. 3.18.4 Infringement Indemnification. Consultant shall defend, indemnify and hold the Commission, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by Commission of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.19 Indemnification. To the fullest extent permitted by law, Consultant shall defend, indemnify and hold Commission, its directors, officials, officers, employees, consultants, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to alleged negligent acts, omissions, or willful misconduct of Consultant, its officials, officers, employees, agents, consultants, and contractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of consequential damages, expert witness fees, and attorneys' fees and other related costs and expenses. Consultant shall defend, at Consultant's own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against Commission, its directors, officials, officers, employees, consultants, agents, or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against Commission or its directors, officials, officers, employees, consultants, agents, or volunteers, in any such suit, action or other legal proceeding. Consultant shall reimburse Commission and its directors, officials, officers, employees, consultants, agents, and/or volunteers, for any and all legal expenses and costs, including reasonable attorney’s fees, incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Commission, its directors, officials officers, employees, consultants, agents, or volunteers. Notwithstanding the 10 17336.00023\9602162.1 123 foregoing, to the extent Consultant’s Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant’s obligations as set forth in this Section 3.19 shall survive expiration or termination of this Agreement. 3.20 Insurance. 3.20.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the Commission that it has secured all insurance required under this section, in a form and with insurance companies acceptable to the Commission. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. 3.20.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage: (A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) if Consultant has an employees, Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Practices Liability limits of $1,000,000 per accident. 3.20.3 Professional Liability. Consultant shall procure and maintain, and require its sub-consultants to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $1,000,000 per claim. This insurance shall be endorsed to include contractual liability applicable to this 11 17336.00023\9602162.1 124 Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. 3.20.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the Commission to add the following provisions to the insurance policies: (A) General Liability. (i) Commercial General Liability Insurance must include coverage for (1) bodily Injury and property damage; (2) personal Injury/advertising Injury; (3) premises/operations liability; (4) products/completed operations liability; (5) aggregate limits that apply per Project; (6) explosion, collapse and underground (UCX) exclusion deleted; (7) contractual liability with respect to this Agreement; (8) broad form property damage; and (9) independent consultants coverage. (ii) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to this Agreement. (iii) The policy shall give the Commission, its directors, officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (iv) The additional insured coverage under the policy shall be “primary and non-contributory” and will not seek contribution from the Commission’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements providing the exact same coverage. (B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) the Commission, its directors, officials, officers, employees and agents shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects the Commission, its directors, officials, officers, employees and agents, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the Commission, its directors, officials, officers, employees and agents shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way. (C) Workers’ Compensation and Employers Liability Coverage. 12 17336.00023\9602162.1 125 (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) The insurer shall agree to waive all rights of subrogation against the Commission, its directors, officials, officers, employees and agents for losses paid under the terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. (i) Defense costs shall be payable in addition to the limits set forth hereunder. (ii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth herein shall be available to the Commission, its directors, officials, officers, employees and agents as additional insureds under said policies. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured; whichever is greater. (iii) The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the Commission (if agreed to in a written contract or agreement) before the Commission’s own insurance or self-insurance shall be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on a “following form” basis with coverage at least as broad as provided on the underlying policy(ies). (iv) Consultant shall provide the Commission at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the Commission at least ten (10) days prior to the effective date of cancellation or expiration. (v) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage 13 17336.00023\9602162.1 126 continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims- made policy with a retroactive date subsequent to the effective date of this Agreement. (vi) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the Commission, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification. (vii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Commission has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Commission will be promptly reimbursed by Consultant or Commission will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Commission may cancel this Agreement. The Commission may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (viii) Neither the Commission nor any of its directors, officials, officers, employees or agents shall be personally responsible for any liability arising under or by virtue of this Agreement. Each insurance policy required by this Agreement shall be endorsed to state that: 3.20.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Commission. If the Commission does not approve the deductibles or self-insured retentions as presented, Consultant shall guarantee that, at the option of the Commission, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Commission, its directors, officials, officers, employees and agents; or, (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses. 3.20.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the Commission. 3.20.7 Verification of Coverage. Consultant shall furnish Commission with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the Commission. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by the Commission before work commences. The Commission 14 17336.00023\9602162.1 127 reserves the right to require complete, certified copies of all required insurance policies, at any time. 3.20.8 Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the Commission that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the Commission as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, the Commission may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 3.20.9 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.21 Fees and Payment. 3.21.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. Compensation shall be on the basis of direct costs plus a fixed fee as further set forth in Exhibit “C”. The total compensation per Task Order shall be set forth in the relevant Task Order, and shall not exceed said amount without written approval of the Commission’s Executive Director. 3.21.2 Payment of Compensation. Consultant shall submit a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the Statement. Charges specific to each Milestone listed in the Schedule of Services shall be listed separately on an attachment to each statement. Each statement shall be accompanied by a monthly progress report and spreadsheets showing hours expended for each task for each month and the total Project to date. Each statement shall include a cover sheet bearing a certification as to 15 17336.00023\9602162.1 128 the accuracy of the statement signed by the Consultant's Project Manager or other authorized officer. 3.21.3 Additional Work. Any work or activities that are in addition to, or otherwise outside of, the Services to be performed pursuant to this Agreement shall only be performed pursuant to a separate agreement between the parties. Notwithstanding the foregoing, the Commission’s Executive Director may make a change to the Agreement, other than a Cardinal Change. For purposes of this Agreement, a Cardinal Change is a change which is “outside the scope” of the Agreement; in other words, work which should not be regarded as having been fairly and reasonably within the contemplation of the parties when the Agreement was entered into. An example of a change which is not a Cardinal Change would be where, in a contract to construct a building there are many changes in the materials used, but the size and layout of the building remains the same. Cardinal Changes are not within the authority of this provision to order, and shall be processed by the Commission as “sole source” procurements according to applicable law, including the requirements of FTA Circular 4220.1D, paragraph 9(f). A. In addition to the changes authorized above, a modification which is signed by Consultant and the Commission’s Executive Director, other than a Cardinal Change, may be made in order to: (1) make a negotiated equitable adjustment to the Agreement price, delivery schedule and other terms resulting from the issuance of a Change Order, (2) reflect definitive letter contracts, and (3) reflect other agreements of the parties modifying the terms of this Agreement (“Bilateral Contract Modification”). B. Consultant shall not perform, nor be compensated for any change, without written authorization from the Commission’s Executive Director as set forth herein. In the event such a change authorization is not issued and signed by the Commission’s Executive Director, Consultant shall not provide such change. 3.21.4 No Payment Prior to Approval of Work. No payment shall be made to Consultant prior to approval of any work, nor for work performed prior to approval and execution of this Agreement. 3.21.5 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by the Commission's Representative. 3.21.6 Subcontracts. All subcontracts in excess of $25,000 shall contain the provisions of this Section 3.22 and the attached Exhibit “C”. 3.22 Prohibited Interests. 3.22.1 Solicitation. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or 16 17336.00023\9602162.1 129 making of this Agreement. For breach or violation of this warranty, the Commission shall have the right to rescind this Agreement without liability. 3.22.2 Conflict of Interest. For the term of this Agreement, no member, officer or employee of the Commission, during the term of his or her service with the Commission, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.22.3 Conflict of Employment. Employment by the Consultant of personnel currently on the payroll of the Commission shall not be permitted in the performance of this Agreement, even though such employment may occur outside of the employee's regular working hours or on weekends, holidays or vacation time. Further, the employment by the Consultant of personnel who have been on the Commission payroll within one year prior to the date of execution of this Agreement, where this employment is caused by and or dependent upon the Consultant securing this or related Agreements with the Commission, is prohibited. 3.22.4 Covenant Against Contingent Fees. As required in connection with federal funding, the Consultant warrants that he/she has not employed or retained any company or person, other than a bona fide employee working for the Consultant, to solicit or secure this Agreement, and that he/she has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration, contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, the Commission shall have the right to terminate this Agreement without liability pursuant to Section 3.14, or at its discretion to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 3.22.5 Covenant Against Expenditure of Local Agency, State or Federal Funds for Lobbying. The Consultant certifies that to the best of his/ her knowledge and belief no state, federal or local agency appropriated funds have been paid, or will be paid by or on behalf of the Consultant to any person for the purpose of influencing or attempting to influence an officer or employee of any state or federal agency; a Member of the State Legislature or United States Congress; an officer or employee of the Legislature or Congress; or any employee of a Member of the Legislature or Congress, in connection with the award of any state or federal contract, grant, loan, or cooperative agreement, or the extension, continuation, renewal, amendment, or modification of any state or federal contract, grant, loan, or cooperative agreement. A. If any funds other than federal appropriated funds have been paid, or will be paid to any person for the purpose of influencing or attempting to influence an officer or employee of any federal agency; a Member of Congress; an officer or employee of