Agenda packet — Mayor and City Council, March 15, 2023 (part 2 of 4)

2 3
2 4
RESOLUTION NO. 2023-044

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

BERNARDINO, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1
(HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO,

AUTHORIZING THE RECORDING OF A NOTICE OF CESSATION OF

SPECIAL TAX LIEN
WHEREAS, the City Council (the “City Council”) of the City of San Bernardino, California (the “City”), has previously formed Community Facilities District No. 2022-1 (Highland/Medical) of the City of San Bernardino, County of San Bernardino, State of California (“CFD No. 2022-1”) pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the qualified electors approved the levy of special taxes on the real property located within the CFD No. 2022-1 for the purpose of financing the provision of certain services and the acquisition and construction of certain facilities; and WHEREAS, pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and Section 53328.3 of the California Government Code, the City Clerk of the City of San Bernardino (the “City Clerk”) previously caused to be recorded in the records of the County Recorder for the County of San Bernardino, a Notice of Special Tax Lien for CFD No. 2022-1 (the “Notice of Special Tax Lien”); and
WHEREAS, the Notice of Special Tax Lien gave notice that the special taxes are authorized to be levied within CFD No. 2022-1 and the lien of the special taxes is a continuing lien which shall secure each annual levy of the special taxes and which shall continue in force and effect until such special tax obligation is prepaid, permanently satisfied, and cancelled in accordance with law or until the special taxes cease to be levied and a notice of cessation of special ax is recorded in accordance with Section 5330.5 of the Government Code; and WHEREAS, on January 11, 2023, the City received a formal request from Warmington Highland Village Associates, L.P. (the “Property Owner”) to cause the cancellation of the special tax obligation of CFD No. 2022-1; and
WHEREAS, this City Council, acting for and on behalf of CFD No. 2022-1, desires to cause to be recorded a Notice of Cessation, pursuant to Section 53330.5 of the Act, to give notice that the obligation to pay special taxes of CFD No. 2022-1 has ceased and the lien imposed by the recordation of the Notice of Special Tax Lien for CFD No. 2022-1 has been extinguished.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1.Recitals. The above recitals are all true and correct.

Packet Pg.
278

Resolution No. 2023-044
Resolution 2023-044
March 15, 2023

Page 2 of 3 ends

2 3
2 4
SECTION 2.Determination. It is hereby determined by this City Council that the special tax shall cease to be levied on property within CFD No. 2022-1.

SECTION 3.Notice of Cessation. The City Clerk, acting for and on behalf of CFD No. 2022-1 is hereby ordered to cause a Notice of Cessation to be recorded in the office of the County Recorder of the County of San Bernardino pursuant to Section 53330.5 of the Act, as it pertains to the special tax obligation of CFD No. 2022-1.

SECTION 4.Effective Date. This Resolution shall become effective immediately upon its adoption.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of March, 2023.

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:
____________________
Sonia R. Carvalho, City Attorney

Packet Pg.
279

Resolution No. 2023-044
Resolution 2023-044
March 15, 2023

Page 3 of 3 ends

2 3
2 4

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-044, adopted at a regular meeting held on the 15th day of March 2023 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.

Genoveva Rocha, CMC, City Clerk

Packet Pg.
280

1 RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

EXEMPT FROM FILING FEES

PURSUANT TO GOVERNMENT
CODE SECTION 6103
City Clerk
City of San Bernardino
290 North “D” Street
San Bernardino, California 92401

NOTICE OF CESSATION AND EXTINGUISHMENT OF SPECIAL TAX LIEN COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL)

OF THE CITY OF SAN BERNARDINO
The CITY COUNCIL OF THE CITY OF SAN BERNARDINO, acting on behalf of COMMUNITY FACILITIES DISTRICT NO. 2022-1 (HIGHLAND/MEDICAL) OF THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA (the “District”), previously conducted proceedings, held an election and authorized the levy of certain special taxes under proceedings for the formation of a community facilities district pursuant to the provisions of the “Mello- Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California.

NOTICE IS HEREBY GIVEN by the City Clerk of the City of San Bernardino, acting for and on behalf of the District, that the obligation to pay Special Taxes as defined in the rate and method of apportionment, as set forth in and secured by the Notice of Special Tax Lien recorded in the official records of the Recorder’s Office of the County of San Bernardino, California on October 7, 2022, as Document No. 2022-0336639 has ceased as to the parcel identified in Exhibit “A” attached hereto and incorporated herein by this reference (the “Properties”). This Notice of Cessation and Extinguishment of Special Tax lien is authorized pursuant to the provisions of Section 53330.5 of the Government Code of the State of California.

Upon recordation of this Notice of Cessation and Extinguishment of Special Tax Lien, the Special Tax lien imposed on the Properties by the District is hereby extinguished.

Packet Pg.
281

2 For further particulars as to the boundaries of the District, reference is made to the boundary map of the District recorded on July 26, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts, at Page 42, and as Instrument No. 2022-0258073, in the Office of the County Recorder for the County of San Bernardino, State of California.

This Notice of Cessation and Extinguishment of Special Tax Lien has been executed in the City of San Bernardino, California on the date set forth below.

DATED: ______, 2023.

______________________________________________
Genoveva Rocha, CMC, City Clerk

Packet Pg.
282

29728.00015\33835447.1
A-1

EXHIBIT A
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(HIGHLAND/MEDICAL)

OF THE CITY OF SAN BERNARDINO

DESCRIPTION OF PROPERTY
Assessor Parcel Number Owner
0143-191-59 Warmington Highland
Village Associates, L.P.

Packet Pg.
283

1 1
4 1

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 15, 2023
To: Honorable Mayor and City Council Members
From: Miguel J Guerrero, General Manager
Department: Water
Subject: Receive and File San Bernardino Municipal Water Department’s Audited Annual Comprehensive
Financial Report for Fiscal Year Ended June 30, 2022.

Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for water and sewer utilities for Fiscal Year ended June 30, 2022.

Background
Section 603(e) of the City of San Bernardino Charter requires that the Water Board provide for an “annual, independent audit of all water and wastewater accounts" and that “copies of all auditors’ reports shall be filed with the City Clerk and Council.” The audit firm of Lance, Soll & Lunghard, LLP completed the Water Department’s annual audit and produced the attached Annual Comprehensive Financial Report (ACFR) for Fiscal Year ended June 30, 2022. This report includes the financial statements, the Independent Auditor’s Report, Management’s Discussion and Analysis, as well as a statistical section containing historical information and data. The ACFR was presented to the City Water Board at its January 24, 2023, regular meeting, and it was approved unanimously.

For the sixth straight year, the Water Department received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Report for its Fiscal Year 2020/21 ACFR. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment for the Water Department.

Packet Pg.
284

1 1
4 1
Discussion
N/A
2021-2025 Strategic Targets and Goals
This resolution aligns with the adopted 2020-2025 Key Strategic Targets and Goals, specifically Target 1: Financial Stability. The information in these reports is useful to the City Water Board in making operational and financial decisions to meet the Water Department’s goals and objectives.

Fiscal Impact
There is no fiscal impact associated with this item.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the San Bernardino Municipal Water Department’s audited Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2022.

Attachments
Attachment 1 - Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022.

Ward: N/A
Synopsis of Previous Council Actions:

N/A

Packet Pg.
285

Received 0l-18-23
SAfIAWO.r{!f
General Manager
TO:

FROM:

SUBJECT:

CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT
\\',\'l'ttR I]o:\lt[)
s'l'.\l rtr lU,llr()l{'I'
N{igucl-f . (}ucrrero, P.li., (lcncral Nlanagcr 4r-Z '<- Cynthia I\'louser, I)ircctor r>f Iiinancc
PRESENTATION OF THE RESULTS OF THE FISCAL YEAR 2O2I-22

AUDIT, ANNUAL COMPREHENSIVE FINANCIAL REPORT, SINGLE

AUDIT REPORT ON FEDERAL AWARDS
Januan 17,2023DATE:
8,,\CK(iROUNI):

On-fanuan, 21,2023,Iiyan l)omino, Partner in thc tirm of Lancc S()ll & Lunghard LLP 0,Sl), \viil prescnt and distnbute to thc \\'ater lloard thc ,\nnual Or>mprchcnsivc liinancial Rcport (r\CIrR) for thc Ciq' of San llcrnardino Nlunicipal \\'atcr l)cpartment (thc l)cpartmcnt) for the fiscal vcar cndcd -f unc 30, 2022.'I-he Dcpartmcnt entcrcd a thrcc-\'car c()ntract with l,SL in NIav of 2019 to perform thc \\'ater I)epartmcnt's annual financial audit of thc l)cpartmcnt's thrcc cntctprisc flnds, RIX, and thc l)cpartment's licdcral programs (Singlc,\udit).
'l'he ACIIR rcflccts the l)cpartmcnt's rcsults of financial ()pcrati(xts as o[.f unc 30,2022. r\n impartial opinion has been issucd from I-SL. 'I'hc \\'atcr and Scrvcr cntcrprisc furrds arc rcporting a positir-c net income aftcr capital contributi<>ns; thc Scwcr (.ollcction fund is rcportin.q a nct l()ss aftcr capital contributions. ;\ summan of the dcpartment's financcs can bc firund in thc l\Ianagcmcnt's l)iscussion and ,\nalysis section of the ,\nnual Cr>mprchcnsive liinancial ltcport, with addirional details throughout thc rcport.
(;(),\LS,\ND ()Rl I :C'l'lVI iS
'l'his proposc<l.f une 30,2022,,,\(,lrll aligns with the Dcpartrncnt's Stratcgic PIan undcr'l'arget # 5:

Iiiscal li.csponsibiliq'. 'l'his supp6rts key valucs that cxercisc rcsponsiblc firrancial managcment, providc rcsponsible stcwardship of public funds, and cnsurc transParcnc\I.

ITISC,\l- IIUP,\C'I':
'l'here is no fiscal impact associatcd with this itcm.
.\gcnda Item 5

Packet Pg.
286

MiguelJ. Guerrero

Page 2 ends

January 17,2023
Subject: PRESENTATION OF THE RESULTS OF THE FISCAL YEAR 2021-22 AUDIT, ANNUAL

COMPREHENSTVE FINANCIAL REPORT, SINGLE AUDIT REPORT ON FEDERAL AWARDS RECOMME,NDATION:

It is recommended that the Water Board make the following motions:
. Appro-re the Annual Comprehensive Financial Report for the City of San Bernardino Municipal Water Department for the fiscal year endingJune 30,2022. o Direct staff to file the annual audit and Annual Comprehensive Financial Repot with the Mayor and City Council.

Respectfully submitted,
h*^" lJNr,A
Cynthia Mouser
Directot of Finance
Attachments:
o Annual Comprehensive Financial Report, Fiscal Year EndedJune 30,2022 o Single Audit
o Audrt Communications Letter
o Report on Internal Controls
• Slideshow Presentation

Packet Pg.
287

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT

OF THE CITY OF SAN BERNARDINO

WATER DEPARTMENT

FOR THE FISCAL YEAR ENDED JUNE 30, 2022
San Bernardino, CA

A COMPONENT UNIT OF THE CITY OF SAN BERNARDINO

Packet Pg.
288

7+,63$*(,17(17,21$//</()7%/$1.

Packet Pg.
289

&,7<2)6$1%(51$5',12
081,&,3$/:$7(5'(3$570(17

$&20321(1781,72)7+(&,7<2)6$1%(51$5',12

$118$/&2035(+(16,9(),1$1&,$/5(3257

)25),6&$/<($5(1'('-81(

35(3$5('%<

7+(),1$1&($1'$&&2817,1*',9,6,21

Packet Pg.
290

7+,63$*(,17(17,21$//</()7%/$1.

Packet Pg.
291

&,7<2)6$1%(51$5',12
081,&,3$/:$7(5'(3$570(17

$118$/&2035(+(16,9(),1$1&,$/5(3257

)25),6&$/<($5(1'('-81(

7$%/(2)&217(176

3DJH
V

,1752'8&725<6(&7,21

/HWWHURI7UDQVPLWWDOL *)2$&HUWLILFDWHRI$FKLHYHPHQWYLLL 2UJDQL]DWLRQDO&KDUWL[ /LVWRI(OHFWHGDQG$SSRLQWHG2IILFLDOV[
),1$1&,$/6(&7,21

,QGHSHQGHQW$XGLWRUV¶5HSRUW 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV %DVLF)LQDQFLDO6WDWHPHQWV

6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV 1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV
5(48,5('6833/(0(17$5<,1)250$7,21

6FKHGXOHRI3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\ 6FKHGXOHRI3HQVLRQ3ODQ&RQWULEXWLRQV 6FKHGXOHRI&KDQJHVLQ1HW23(%/LDELOLW\
$VVHW
DQG5HODWHG5DWLRV 6FKHGXOHRI23(%3ODQ&RQWULEXWLRQV 6FKHGXOHRI23(%3ODQ,QYHVWPHQW5HWXUQV
67$7,67,&$/6(&7,21

&KDQJHVLQ1HW3RVLWLRQ±&RPELQHG)XQGV &KDQJHVLQ1HW3RVLWLRQ±:DWHU)XQGV &KDQJHVLQ1HW3RVLWLRQ±6HZHU)XQG &KDQJHVLQ1HW3RVLWLRQ±6HZHU&ROOHFWLRQ)XQG 1HW3RVLWLRQE\&RPSRQHQW±&RPELQHG 1HW3RVLWLRQE\&RPSRQHQW±:DWHU)XQG 1HW3RVLWLRQE\&RPSRQHQW±6HZHU)XQG 1HW3RVLWLRQE\&RPSRQHQW±6HZHU&ROOHFWLRQ)XQG
:DWHU)XQG5HYHQXHE\7\SH 6HZHU)XQG5HYHQXHE\7\SH 6HZHU&ROOHFWLRQ)XQG5HYHQXHE\7\SH :DWHU)XQG([SHQVHVE\7\SH 6HZHU)XQG([SHQVHVE\7\SH 6HZHU&ROOHFWLRQ)XQG([SHQVHE\7\SH :DWHU)XQG'HEW6HUYLFH&RYHUDJH 6HZHU)XQG'HEW6HUYLFH&RYHUDJH

5DWLRVRI2XWVWDQGLQJ'HEWE\7\SH 'HPRJUDSKLF6WDWLVWLFV 0DMRU(PSOR\HUV

Packet Pg.
292

&,7<2)6$1%(51$5',12
081,&,3$/:$7(5'(3$570(17

$118$/&2035(+(16,9(),1$1&,$/5(3257

)25),6&$/<($5(1'('-81(

7$%/(2)&217(176

3DJH
V

67$7,67,&$/6(&7,21
&217,18('

$XWKRUL]HG3RVLWLRQV+LVWRU\ :DWHU5DWHV
0LQLPXP0RQWKO\&KDUJH
:DWHU&RQQHFWLRQVDQG5HYHQXHVE\8VHU7\SHV
:DWHU5DWHV±(OHYDWLRQ&KDUJHVSHU+&)
7RS7HQ:DWHU&RQVXPHUV
6HZHU7UHDWPHQW5DWH+LVWRU\
6HZHU7UHDWPHQW&RQQHFWLRQVDQG5HYHQXHE\8VHU7\SH
7RS7HQ6HZDJH7UHDWPHQW&XVWRPHUV
6HZHU&ROOHFWLRQ5DWH+LVWRU\

6HZHU&ROOHFWLRQ&RQQHFWLRQVDQG5HYHQXHE\8VHU7\SH 7RS7HQ6HZHU&ROOHFWLRQ&XVWRPHUV

Packet Pg.
293

6RXWK³(´6WUHHW6DQ%HUQDUGLQR&DOLIRUQLD
32%R[
3KRQH

)$&6,0,/(180%(56
$GPLQLVWUDWLRQ

&XVWRPHU6HUYLFH

)LQDQFH

(QJLQHHULQJ

&RUSRUDWH<DUGV

:DWHU5HFODPDWLRQ3ODQW

(QYLURQPHQWDO 5HJXODWRU\&RPSOLDQFH

(QYLURQPHQWDO&RQWURO

&,7<2)6$1%(51$5',12
081,&,3$/:$7(5'(3$570(17

&,7<2)6$1%(51$5',12
:$7(5%2$5'

721,&$//,&277
3UHVLGHQW

&RPPLVVLRQHUV
:$<1(+(1'5,;
'$9,'(0/<1$56.,
5,..(9-2+1621
7+20$6%5,&./(<

0,*8(/-*8(55(523(
*HQHUDO0DQDJHU
52%,1/2+$0$
'HSXW\*HQHUDO0DQDJHU
67(9(50,//(5
'LUHFWRURI:DWHU8WLOLW\
.(9,1767(:$573(
'LUHFWRURI:DWHU5HFODPDWLRQ
-(11,)(5/6+(3$5'621
'LUHFWRURI(QYLURQPHQWDO
5HJXODWRU\&RPSOLDQFH
&<17+,$-0286(5
'LUHFWRURI)LQDQFH
“Trusted, Quality Service since 1905”

-DQXDU\

:DWHU%RDUG&RPPLVVLRQHUV
6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW

,QWURGXFWLRQ

6WDWHODZUHTXLUHVWKDWHYHU\JHQHUDOSXUSRVHJRYHUQPHQWSXEOLVKDFRPSOHWHVHWRIDXGLWHGILQDQFLDOVWDWHPHQWV ZLWKLQVL[PRQWKVRIWKHFORVHRIHDFKILVFDO\HDU7KLVUHSRUW LVSXEOLVKHGWRIXOILOOWKDWUHTXLUHPHQWIRUWKH 6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW
³'HSDUWPHQW´
IRUWKHILVFDO\HDUHQGHG-XQH

0DQDJHPHQWDVVXPHVIXOOUHVSRQVLELOLW\IRUWKHFRPSOHWHQHVVDQGUHOLDELOLW\RIWKHLQIRUPDWLRQFRQWDLQHGLQWKLV UHSRUWEDVHGXSRQDFRPSUHKHQVLYHIUDPHZRUNRILQWHUQDOFRQWUR OWKDWLWKDVHVWDEOLVKHGIRUWKLVSXUSRVH %HFDXVH WKH FRVW RI LQWHUQDO FRQWURO VKRXOG QRW H[FHHG DQWLFLSDWHG EHQHILWV WKH REMHFWLYH LV WR SURYLGH UHDVRQDEOHUDWKHUWKDQDEVROXWHDVVXUDQFHWKDWWKHILQDQFLDOVWDWHPHQWVDUHIUHHRIDQ\PDWHULDOPLVVWDWHPHQWV
/DQFH6ROO /XQJKDUG//3KDVLVVXHGDQXQPRGLILHGRSLQLRQRQWKH'HSDUWPHQW¶VILQDQFLDOVWDWHPHQWVIRUWKH \HDUHQGHG-XQH7KHLQGHSHQGHQWDXGLWRU¶VUHSRUWLVORFDWHGDWWKHIURQWRIWKHILQDQFLDOVHFWLRQRIWKLV UHSRUW

0DQDJHPHQW¶VGLVFXVVLRQDQGDQDO\VLV
³0' $´
LPPHGLDWHO\IROOR ZVWKHLQGHSHQGHQWDXGLWRU¶VUHSRUWDQG SURYLGHVDQDUUDWLYHLQWURGXFWLRQRYHUYLHZDQGDQDO\VLVRIWKHEDVLFILQDQFLDOVWDWHPHQWV0' $FRPSOHPHQWV WKLVOHWWHURIWUDQVPLWWDODQGVKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW
3URILOHRIWKH'HSDUWPHQW

7KH6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQWDQGWKH:DWHU%RD UGRI&RPPLVVLRQHUV ³%RDUG´
ZHUH
HVWDEOLVKHGRQ0D\WK
E\WKH0D\RUDQG&RPPRQ&RXQFLORIWKH&LW\RI6DQ%HUQDUGLQRLQDFFRUGDQFH ZLWKWKHSURYLVLRQVVSHFLILHGLQWKH&LW\FKDUWHU7KH%RDUGDV VHPEOHGIRUWKHILUVWWLPHRQ0D\WK WR
HQVXUHZDWHUVXSSO\QHHGVRIWKHFRPPXQLW\DUHPHWE\SURYLGLQJWUXVWHGTXDOLW\VHUYLFHWRRXUFXVWRPHUV7KLV VHUYLFHKDVJURZQWKURXJKWKH\HDUVWRLQFOXGHZDWHUVXSSO\ZD WHUUHFODPDWLRQJHRWKHUPDOKHDWLQJVXSSO\ VHZHUFROOHFWLRQDQGDGPLQLVWUDWLYHVXSSRUWIRUWKHJURZLQJFRPPXQLW\
i

Packet Pg.
294

7KHILUVWZDWHUGLVWULEXWLRQV\VWHPRI6DQ%HUQDUGLQRLQFOXGHG ZDWHUVXSSO\IRUDSSUR[LPDWHO\VL[WKRXVDQG FLWL]HQV ZLWKLQ D RQH VTXDUH PLOH VHUYLFH DUHD 7RGD\ WKH 'HSDUWPHQW¶V VHUYLFH DUHD LV DSSUR[LPDWHO\ VTXDUHPLOHVDQGWKHZDWHUVXSSO\GLVWULEXWLRQQHWZRUNQRZHQFRPSDVVHVRYHUVHUYLFHFRQQHFWLRQV DQGPLOHVRIZDWHUPDLQV$OWKRXJKWKHQXPEHURIFRQQHFWLRQVKDVLQFUHDVHGGXULQJWKHSDVWRQHKXQGUHG \HDUVRXUFRPPLWPHQWWRSURYLGLQJWUXVWHGTXDOLW\VHUYLFHUHPDLQVWKHVDPH
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
7KH'HSDUWPHQWKDVRSHUDWHGWKH:DWHU5HFODPDWLRQ3ODQW :53
VLQFH
7KH:53LVDPLOOLRQJDOORQV
SHUGD\
0*'
UHJLRQDOVHFRQGDU\WUHDWPHQWIDFLOLW\WKDWSURYLGHVWUXVWHGTXDOLW\ZDVWHZDWHUWUHDWPHQWVHUYLFHV IRUWKH&LW\RI6DQ%HUQDUGLQR&LW\RI/RPD/LQGD(DVW9DOOH\ :DWHU'LVWULFW6DQ%HUQDUGLQR,QWHUQDWLRQDO $LUSRUW3DWWRQ6WDWH+RVSLWDODQGXQLQFRUSRUDWHGDUHDVRI6DQ %HUQDUGLQR&RXQW\7KH:53VHUYHVRYHU FXVWRPHUVRIZKLFKDUHORFDWHGZLWKLQWKH&LW\¶VERXQGDULHV
,Q0D\RIPDQDJHPHQWDQGRSHUDWLRQVRIWKH6HZHU&ROOHFWL RQ6\VWHPZHUHWUDQVIHUUHGIURPWKH &LW\RI6DQ%HUQDUGLQR3XEOLF:RUNV'HSDUWPHQWWRWKH6DQ%HUQD UGLQR0XQLFLSDO:DWHU'HSDUWPHQW7KH 6HZHU&ROOHFWLRQVHFWLRQLVUHVSRQVLEOHIRUPDLQWDLQLQJPLOHVRIVHZHUPDLQVVHYHUDOWKRXVDQGPDLQWHQDQFH KROHVDQGOLIWVWDWLRQV7KHV\VWHPHQFRPSDVVHVDSSUR[LPDWHO\FRQQHFWLRQVDQGFRQYH\VRYHUELOOLRQ JDOORQVRIVHZDJHDQQXDOO\WRWKH'HSDUWPHQW¶V:DWHU5HFODPDWLRQ3ODQWIRUWUHDWPHQW
)LVFDO0DQDJHPHQW

7KH%RDUGDQQXDOO\DGRSWVDQRSHUDWLQJDQGFDSLWDOEXGJHWSULRUWRWKHQHZILVFDO\HDU7KHEXGJHWDXWKRUL]HV DQGSURYLGHVWKHEDVLVIRUUHSRUWLQJDQGFRQWURORIILQDQFLDOR SHUDWLRQVDQGDFFRXQWDELOLW\IRUWKH'HSDUWPHQW¶V IXQFWLRQVLQFOXGLQJWKH:DWHU8WLOLW\6HZHU7UHDWPHQWDQG6HZHU&ROOHFWLRQ)XQGV7KHEXGJHWDQGUHSRUWLQJ WUHDWPHQWDSSOLHGWRDIXQGLVFRQVLVWHQWZLWKWKHDFFUXDOEDVLVRIDFFRXQWLQJDQGWKHILQDQFLDOVWDWHPHQWEDVLV (DFK\HDUWKH'HSDUWPHQWDGRSWVDEDODQFHGEXGJHW

/RFDO(FRQRP\

7KH'HSDUWPHQW¶VRIILFHVDUHORFDWHGLQWKH&LW\RI6DQ%HUQDUGLQRLQ6DQ%HUQDUGLQR&RXQW\$FFRUGLQJWRWKH &DOLIRUQLD 'HSDUWPHQW RI )LQDQFH 6DQ %HUQDUGLQR¶V SRSXODWLRQ DV RI -XQH ZDV 7KH&LW\RI6DQ%HUQDUGLQR
³WKH&LW\´
FRQWLQXHVWRUHFRYHUIU RPWKHGRZQWXUQLQWKHHFRQRP\FDXVHGE\WKH 3DQGHPLF7KH&LW\¶VXQHPSOR\PHQWUDWHLV
DVRI6HSWHPEHUZKLFKLVUHGXFHGIURPDUDWHRI
DWWKHVDPHWLPHLQ7KH&LW\KDVUHFHLYHGIXQGVIURPWKH$PHULFDQ5HFRYHU\$FWWKDWZLOOKHOSVWLPXODWH HFRQRPLFJURZWKLQWKHDUHD7KH&LW\KDVDOORFDWHGWRWKH'HS DUWPHQWDSSUR[LPDWHO\PLOOLRQIURPWKH $PHULFDQ5HFRYHU\$FWIXQGVWRIXQGWKH'HSDUWPHQW¶V/HDG6HUYL FH/DWHUDOFDSLWDOSURMHFW7KH'HSDUWPHQW ZDVDOVRDEOHWRUHFRYHUDSSUR[LPDWHO\PLOOLRQIURPWKH&DOLIRUQLD$UUHDUDJH3D\PHQW3URJUDPIRUFXVWRPHU GHOLQTXHQFLHVUHODWHGWRWKH&29,'
3DQGHPLF
³3DQGHPLF´

7KH0D\,QODQG(PSLUH5HJLRQDO,QWHOOLJHQFH5HSRUWSXEOLVKHGE\WKH8QLYHUVLW\RI&DOLIRUQLD5LYHUVLGH¶V &HQWHUIRU(FRQRPLF)RUHFDVWLQJDQG'HYHORSPHQWQRWHVWKDWWKH ,QODQG(PSLUH¶VODERUPDUNHWKDVIXOO\ UHFRYHUHGIURPWKH3DQGHPLF7KHXQHPSOR\PHQWUDWHIRUWKH,QODQG(PSLUHLVDVRIVXPPHUZKLFK LVORZHUWKDQWKHSUH3DQGHPLFUDWHRILQ)HEUXDU\RI 7KHMREPDUNHWLQLQWKH,QODQG(PSLUH¶V ϭ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕
ŵƉůŽǇŵĞŶƚĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ͕>ĂďŽƌDĂƌŬĞƚ/ŶĨŽƌŵĂƚŝŽŶ͕ŚƚƚƉ͗ͬͬǁǁǁ͘ůĂďŽƌŵĂƌŬĞƚŝŶĨŽ͘ĞĚĚ͘ĐĂ͘ŐŽǀͬ ii

Packet Pg.
295

WUDQVSRUWDWLRQDQGZDUHKRXVLQJVHFWRUKDVEHHQERRVWHGGXHWRW KHLQFUHDVHLQHFRPPHUFHGXULQJWKH 3DQGHPLF2YHUORFDOMREVZHUHDGGHGWRWKHWUDQVSRUWDWLRQDQGZDUHKRXVLQJVHFWRULQWKH,QODQG(PSLUH VLQFH)HEUXDU\2WKHUVHFWRUVOLNHSURIHVVLRQDOVFLHQWLILFDQGWHFKQLFDOVHUYLFHVDGPLQLVWUDWLYHVXSSRUW UHWDLOWUDGHDQGILQDQFLDODFWLYLWLHVKDYHKDGVLJQLILFDQWMREJDLQVDVZHOO:DJHVLQWKH,QODQG(PSLUHJUHZ IURPWKHWKLUGTXDUWHUWRWKHWKLUGTXDUWHURI ZDJHVLQ6DQ%HUQDUGLQR&RXQW\JUHZZKLFKWUDLOV &DOLIRUQLD¶VZDJHJURZWKRIRYHUDOO0RVWRIWKHVORZZDJH JURZWKLQWKH,QODQG(PSLUHLVDWWULEXWHGWR DGGLQJSRVLWLRQVLQORZSD\LQJLQGXVWULHVVXFKDVOHLVXUHDQGK RVSLWDOLW\DQGUHWDLOWUDGH$VQRWHGLQWKH 5HJLRQDO,QWHOOLJHQFH5HSRUWWKH,QODQG(PSLUHUHJLRQFRQWLQXH VWREHRQHRIWKHIDVWHVWJURZLQJDUHDVLQ 6RXWKHUQ&DOLIRUQLDPRVWO\GXHWRWKHDIIRUGDEOHKRXVLQJRIIHU HGLQWKHDUHD7KHPHGLDQVLQJOHIDPLO\KRPH SULFHLQWKH,QODQG(PSLUHURVH
IURPWKHILUVWTXDUWHURI WRWKHILUVWTXDUWHURIEULQJLQJWKH PHGLDQVLQJOHIDPLO\KRPHSULFHWRZKLFKLVORZHUWKDQ/RV$QJHOHV2UDQJHDQG6DQ'LHJRFRXQWLHV 7KHKRXVLQJPDUNHWLVH[SHFWHGWRVORZGRZQDVLQIODWLRQLVGUL YLQJXSPRUWJDJHUDWHVDQGPDNLQJKRPH RZQHUVKLSOHVVDIIRUGDEOH

&DOLIRUQLD¶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¶VUHYHQXHVLJQLILFDQWO\6WDWH:DWHU3URMHFWDOORFDWLRQVKDYHDOVR EHHQUHGXFHGLQUHVSRQVHWRWKHVWDWH¶VVXVWDLQHGGURXJKWFRQGL WLRQV7KH'HSDUWPHQWLVQRWDIIHFWHGE\WKH 6WDWH:DWHU3URMHFWDOORFDWLRQDVWKHSULPDU\VRXUFHRIZDWHUIRUWKH'HSDUWPHQWLVORFDOJURXQGZDWHU
)RUWKH'HSDUWPHQWWKHJRDORIZDWHUXVHHIILFLHQF\UHPDLQVSD UDPRXQW(IILFLHQWZDWHUXVHLVWKHPRVW FRVWHIIHFWLYHDQGLPPHGLDWHZD\WRDFKLHYHORQJWHUPFRQVHUYDW LRQJRDOV$VVXFKWKH'HSDUWPHQWLV FRPPLWWHGWRVKDULQJLQIRUPDWLRQSURJUDPVDQGLQFHQWLYHVWRH QFRXUDJHDQGVXSSRUWZDWHUXVHHIILFLHQF\IRU RXUFXVWRPHUV

iii

Packet Pg.
296

0DMRU,QLWLDWLYHV

Fuel Cell
,Q -XO\ WKH 'HSDUWPHQW FRPPHQFHG RSHUDWLRQ RID IXHO FHOOIDFLOLW\ DW WKH 6DQ %HUQDUGLQR :DWHU 5HFODPDWLRQ3ODQW
:53
VLWH7KHIXHOFHOODOORZVWKH'HSDUWPH QWWRFRQWLQXHEHQHILFLDOO\XVHRIPHWKDQH SURGXFHGIURPZDVWHZDWHUWUHDWPHQWGLJHVWHUV
³GLJHVWHUJDV´
WRSURGXFHHOHFWULFLW\IRUWKH:53

+LVWRULFDOO\WKH'HSDUWPHQWXVHGGLJHVWHUJDVEHQHILFLDOO\WR IXHOHQJLQHVWKDWRSHUDWHGJHQHUDWRUVDHUDWLRQ EORZHUVDQGSXPSVWKDWZHUHSDUWRIWKHZDVWHZDWHUWUHDWPHQWS URFHVV7KH'HSDUWPHQWPXVWPHHWVHYHUDO VWULQJHQWUHJXODWLRQVWRHQVXUHWKHKHDOWKDQGVDIHW\RIWKHFRPPXQLW\LWVHUYHVDQGWRSURWHFWWKHHQYLURQPHQW 7KLVLQFOXGHVQHZDQGUHYLVHGDLUTXDOLW\VWDQGDUGVIRURSHUDWLRQRIZDVWHZDWHUSODQWVVXFKDVWKH:53
7KHIDFLOLW\ZDVFRQFHLYHGDVSDUWRIWKH'HSDUWPHQW¶VRQJRLQJUHVSRQVHWRWKHQHZDQGUHYLVHGUHJXODWLRQVDQG VXSSRUWVWKH'HSDUWPHQW¶VSODQVWRLPSURYHRSHUDWLRQVDQGFRQWLQXHWREHQHILFLDOO\XWLOL]HELRJDVJHQHUDWHGIURP WKH:53GLJHVWHUV7KHIXHOFHOOIDFLOLW\ZDVGHYHORSHGLQDSX EOLFSULYDWHSDUWQHUVKLSEHWZHHQ6%0:'DQG )XHO&HOO(QHUJ\,QF
)&(/
DOHDGLQJ86PDQXIDFWXUHURIIXH OFHOOSRZHUSODQWVZLWKVHYHUDOIDFLOLWLHVDW ZDVWHZDWHUWUHDWPHQWSODQWVLQ&DOLIRUQLD)&(/ZDVUHVSRQVLEOHIRUFRQVWUXFWLRQLQVWDOODWLRQFRPPLVVLRQLQJRI WKHHQWLUHIDFLOLW\DQGZLOODOVRSURYLGHORQJWHUPRSHUDWLRQPDLQWHQDQFHDQGVHUYLFH
Advanced Metering Infrastructure

7KH'HSDUWPHQWKDVEHHQVHOHFWHGWRUHFHLYHDJUDQWIU RPWKH86%XUHDXRI5HFODPDWLRQWRVWDUW SKDVHRQHRIWKH'HSDUWPHQW¶V$GYDQFHG0HWHULQJ,QIUDVWUXFWXUH $0,
SURMHFW,QDGGLWLRQWRWKLVJUDQWWKH
'HSDUWPHQWZDVDOVRDZDUGHGDPLOOLRQJUDQWE\WKH&$'HSDUW PHQWRI:DWHU5HVRXUFHV8UEDQDQG 0XOWLEHQHILW 'URXJKW 5HOLHI *UDQW 3URJUDP 7KH ILUVW SKDVH RIWKH $0, SURMHFW ZLOO LQVWDOO DQG FRQQHFW DSSUR[LPDWHO\RQHTXDUWHURIWKH'HSDUWPHQW¶VZDWHUPHWHUVWRDQDGYDQFHGFRPPXQLFDWLRQVQHWZRUNWRJDWKHU ZDWHUFRQVXPSWLRQGDWDLQUHDOWLPH7KLVZDWHUXVHGDWDZLOOUHGXFHZDWHUZDVWHE\HQDEOLQJWKH'HSDUWPHQWWR LGHQWLI\DQGQRWLI\FXVWRPHUVRIOHDNVDQGDEQRUPDOO\KLJKZDWHUXVHPRUHTXLFNO\

ϮϮ͕Ϭϳϭ͕ϱϯϯ
ϮϬ͕ϯϲϲ͕ϭϭϳ
ϮϬ͕ϭϳϴ͕ϮϲϬ
ϭϱ͕ϲϵϴ͕ϱϰϱ
ϭϱ͕ϴϮϴ͕ϲϬϳ
ϭϲ͕ϴϲϯ͕ϳϬϲ
ϭϲ͕ϴϲϲ͕ϴϵϮ
ϭϱ͕ϴϱϵ͕ϯϰϮ
ϭϲ͕ϭϬϴ͕ϴϮϰ
ϭϴ͕ϬϴϮ͕ϮϮϬ
ϭϳ͕ϲϲϵ͕ϵϬϮ
Ͳ
ϱ͕ϬϬϬ͕ϬϬϬ
ϭϬ͕ϬϬϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ͕ϬϬϬ
ϮϬ͕ϬϬϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ͕ϬϬϬ
ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
tĂƚĞƌWƌŽĚƵĐƚŝŽŶ
/Ŷ,ƵŶĚƌĞĚƵďŝĐ&ĞĞƚ
tĂƚĞƌWƌŽĚƵĐƚŝŽŶ
iv

Packet Pg.
297

Water Resource Management

7KH'HSDUWPHQWUHFHQWO\FRPSOHWHGDMRLQWSODQQLQJHIIRUWWRGH YHORSWKH,QWHJUDWHG5HJLRQDO8UEDQ:DWHU 0DQDJHPHQW3ODQZLWKVHYHUDODJHQFLHVZLWKLQWKH8SSHU6DQWD$QD5LYHU:DWHUVKHG7KLVHIIRUWGHYHORSHGD FRPSUHKHQVLYHJXLGHIRUZDWHUUHVRXUFHPDQDJHPHQWLQFOXGLQJDFW LRQVWRHQVXUHDGHTXDWHVXSSOLHVWRPHHW IXWXUHGHPDQGVZLWKLQDUDQJHRIZDWHUVXSSO\FRQGLWLRQVLQFOXGLQJZDWHUVKRUWDJHV
Regional Recycled Water

/DVWO\WKH'HSDUWPHQWFRQWLQXHVWRGHYHORSLWVUHF\FOHGZDWHUSURMHFW:KLOHWKHGHVLJQIRUWKHLQLWLDOSKDVHRI WKHSURMHFWLVFRPSOHWHFHUWDLQHQYLURQPHQWDODQGSHUPLWWLQJSUHUHTXLVLWHVUHPDLQ7KH'HSDUWPHQWDQWLFLSDWHV UHVROYLQJRXWVWDQGLQJSUHUHTXLVLWHVDQGFRPPHQFLQJFRQVWUXFWLRQ LQ$WWKHVDPHWKH'HSDUWPHQWLV ZRUNLQJZLWKLWVUHJLRQDOSDUWQHUVWRGHYHORSDUHJLRQDOUHF\FOHGZDWHUV\VWHPWKDWLQYROYHVFRQQHFWLQJUHF\FOHG ZDWHUV\VWHPVLQWKHUHJLRQDQGZLOOSURYLGHIOH[LELOLW\WRDSSO\SURGXFHUHF\FOHGZDWHUZHUHLWLVPRVWQHHGHGLQ WKH6DQ%HUQDUGLQR%DVLQ

/RQJ7HUP)LQDQFLDO3ODQQLQJ

$VSDUWRIWKH'HSDUWPHQW¶V6WUDWHJLF3ODQORQJWHUPILQDQFLDO SODQVZHUHGHYHORSHGIRUDOOWKUHHRIWKH 'HSDUWPHQW¶VHQWHUSULVHV
:DWHU6HZHU7UHDWPHQWDQG6HZHU&ROO HFWLRQ7KHVHILQDQFLDOSODQVDVVLVWHGWKH 'HSDUWPHQWZLWKDFRVWRIVHUYLFHVWXG\IRUDOOWKUHHHQWHUSULV HV$FRVWRIVHUYLFHUDWHVWXG\FRQGXFWHGLQ )<UHFRPPHQGHGDQLQFUHDVHWRWKH'HSDUWPHQW¶VZDWHUDQG VHZHUUDWHV$VDUHVXOWRIWKHVWXG\WKH ZDWHU%RDUGDGRSWHGD\HDUUDWHLQFUHDVHIRUWKHZDWHUDQGVHZHUIXQGVHIIHFWLYH$SULO7KHUHPDLQLQJ LQFUHDVHVDUHHIIHFWLYHDQQXDOO\RQ-XO\VWDUWLQJ-XO\WKURXJK-XO\7KHVHQHZO\DGRSWHGUDWH VWUXFWXUHVDQGLQFUHDVHVZLOODOORZIRUEHWWHUUHYHQXHVWDELOLW\IRUWKH'HSDUWPHQWDVFRVWLQFUHDVHVDQGGURXJKW LVDPDMRUFRQFHUQIRUWKH6WDWH

7KH'HSDUWPHQW¶VILQDQFLDOSODQLQFOXGHVWKHUHYLVLRQRIWKHH[LVWLQJ5HVHUYH3ROLF\7KH'HSDUWPHQW¶VFXUUHQW 5HVHUYHSROLF\ZDVUHYLVHGDQGDGRSWHGE\WKH%RDUGLQ6HSWHPEHU
¾ 2SHUDWLQJ5HVHUYH
7KLVUHVHUYHLVHVWDEOLVKHGWRHQVXUHDGHTX DWHFDVKIORZLVDYDLODEOHWRPHHW GD\WRGD\H[SHQVHV7KHWDUJHWEDODQFHLVGD\VRIWKHRSHUD WLQJH[SHQVHVEXGJHWHGIRUHDFK UHVSHFWLYHIXQG

¾ 5DWH6WDELOL]DWLRQ5HVHUYH
7KLVUHVHUYHLVHVWDEOLVKHGWRRIIVHWUHYHQXHULVNDVVRFLDWHGZLWKORZVHUYLFH GHPDQGV\HDUV7KHPLQLPXPWDUJHWEDODQFHIRUHDFKIXQGLVWZH QW\SHUFHQW
RIWKHLUUHVSHFWLYH
EXGJHWHGVDOHV

¾ (PHUJHQF\5HSODFHPHQW5HVHUYH
7KHSXUSRVHRIWKLVUHVHUYHLVWRPLQLPL]HWKHLPSDFWRIXQIRUHVHHQ FDSLWDODVVHWDQGRSHUDWLQJH[SHQVHV7KHWDUJHWEDODQFHIRUHDFKIXQGVKDOOEHWZRSHUFHQW
RIWKH
WRWDOUHFRUGHGYDOXHRIFDSLWDODVVHWVDVRIWKHSUHYLRXVILVFDO\HDU
¾ &DSLWDO5HSODFHPHQW5HVHUYH
7KH&DSLWDO5HSODFHPHQW5HVHUYHZDVVHWXSLQRUGHUWRSURYLGHIXQGLQJ VXSSRUWRIWKH'HSDUWPHQW¶VFDSLWDOSURJUDP7KHEDVLVIRUFDOFXODWLQJWKHWDUJHWEDODQFHIRUWKLVUHVHUYH LVDUROOLQJILYH\HDUDYHUDJHRIWKH'HSDUWPHQW¶V&DSLWDO,PSURYHPHQW3URJUDPSURMHFWVH[FOXGLQJWKRVH ZLWKH[WHUQDOIXQGLQJ7KHWDUJHWEDODQFHZLOOEHDVVHVVHGRQD QDQQXDOEDVLVDVSDUWRIWKHEXGJHWLQJ SURFHVV

v

Packet Pg.
298

'HEW$GPLQLVWUDWLRQ

7KH'HSDUWPHQW¶VRXWVWDQGLQJGHEWDVRI-XQHFRQVLVWVRIRQH5HYHQXH%RQGLQWKH:DWHU8WLOLW\)XQG DQGRQH5HYHQXH%RQGLQWKH6HZHU8WLOLW\)XQGDVVKRZQLQWKHWDEOHEHORZ

:DWHU)XQG/RQJ7HUP'HEW$FWLYLW\
<HDURI,VVXDQFH'HVFULSWLRQ 8VHRI3URFHHGV
&DOLIRUQLD0XQLFLSDO)LQDQFH$XWKRULW\
5HYHQXH%RQG
)XQGLQJIRUIDFLOLW\FRQVWUXFWLRQVHLVPLFUHWURILW
RIUHVHUYRLUVDQGRWKHUFDSLWDOLPSURYHPHQW
SURMHFWV

6HZHU)XQG/RQJ7HUP'HEW$FWLYLW\
<HDURI,VVXDQFH'HVFULSWLRQ 8VHRI3URFHHGV
&DOLIRUQLD0XQLFLSDO)LQDQFH$XWKRULW\
5HYHQXH%RQG
)XQGLQJIRUSULPDU\LQIOXHQWIORZHTXDOL]DWLRQ
SURMHFWIDFLOLW\FRQVWUXFWLRQDQGUHF\FOHGZDWHU
SURMHFW

5HOHYDQW)LQDQFLDO3ROLFLHV

Internal Control Structure
'HSDUWPHQWPDQDJHPHQWLVUHVSRQVLEOHIRUWKHHVWDEOLVKPHQWDQGPDLQWHQDQFHRIWKHLQWHUQDOFRQWUROVWUXFWXUH WKDWHQVXUHVWKDWWKHDVVHWVRIWKH'HSDUWPHQWDUHSURWHFWHGIU RPORVVWKHIWRUPLVXVH7KHLQWHUQDOFRQWURO VWUXFWXUHDOVRHQVXUHVWKDWDGHTXDWHDFFRXQWLQJGDWDDUHFRPSLO HGWRDOORZIRUWKHSUHSDUDWLRQRIILQDQFLDO VWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSUL QFLSOHV7KH'HSDUWPHQW¶VLQWHUQDOFRQWURO VWUXFWXUHLVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKHVHREMHFWLYHVDUHPHW7KHFRQFHSWRIUHDVRQDEOH DVVXUDQFHUHFRJQL]HVWKDW

WKHFRVWRIDFRQWUROVKRXOGQRW H[FHHGWKHEHQHILWVOLNHO\WREHGHULYHGDQG

WKHYDOXDWLRQRIFRVWVDQGEHQHILWVUHTXLUHVHVWLPDWHVDQGMXGJPHQWVE\PDQDJHPHQW
0DMRU,QLWLDWLYHVDQG.H\9DOXHV

7KHDFWLYLWLHVRIWKH%RDUGDQG'HSDUWPHQWVWDIIDUHGULYHQE\RXUNH\YDOXHVWDWHPHQWVDVRXWOLQHGEHORZ

3URYLGHWKHKLJKHVWOHYHORIFXVWRPHUVHUYLFHWRRXUFRPPXQLW\ 5HVSRQVLEO\HVWDEOLVKQHFHVVDU\UDWHVLQWKHPRVWFRVWHIIHFWLYHPDQQHU 3URYLGHWKHKLJKHVWTXDOLW\ZDWHUDQGZDVWHZDWHUVHUYLFHV 3URYLGHUHVSRQVLEOHVWHZDUGVKLSRIRXUUHVRXUFHVDQGRXUHQYLURQPHQW 5HTXLUHHWKLFDOEXVLQHVVSUDFWLFHV
)RVWHUDVWURQJSRVLWLYHRUJDQL]DWLRQDOFXOWXUHDQGSURPRWHVWDIIGHYHORSPHQW
$ZDUGVDQG$FNQRZOHGJHPHQWV

7KH*RYHUQPHQW)LQDQFH2IILFHUV$VVRFLDWLRQ
*)2$
RIWKH8QLWHG6WDWHVDQG&DQDGDDZDUGHGD&HUWLILFDWH RI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJWRWKH'HS DUWPHQWIRULWVDQQXDOFRPSUHKHQVLYHILQDQFLDO UHSRUWIRUWKHILVFDO\HDUHQGHG-XQH7REHDZDUGHGD &HUWLILFDWHRI$FKLHYHPHQWWKH'HSDUWPHQW PXVWSXEOLVKDQHDVLO\UHDGDEOHDQGHIILFLHQWO\RUJDQL]HGDQQXD OFRPSUHKHQVLYHILQDQFLDOUHSRUW7KLVUHSRUW PXVWVDWLVI\ERWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQGDSSOLFDEOHOHJDOUHTXLUHPHQWV vi

Packet Pg.
299

vii

Packet Pg.
300

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Bernardino Municipal Water Department
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
viii

Packet Pg.
301

Deputy General Manager
Robin L. Ohama

CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT

ORGANIZATION
Rate Payers
City Council
Water Board
General Manager
Miguel J. Guerrero, P.E.

Water Utility
Steve R. Miller
Distribution
Operations
Maintenance
Engineering
Finance and Accounting
Cynthia J. Mouser
Finance
Accounting
Payroll
Purchasing
Water Reclamation
Kevin T. Stewart, P.E.

Operations
Processing
Maintenance
Electrical/SCADA
RIX Facility
Sewer
Collection
Environmental &
Regulatory Compliance
Jennifer L. Shepardson
Evironmental &
Regulatory
Compliance
Safety
Risk Mgmt
Environmental
Control
Water Quality
Human Resources
Customer Service
Field & Meter Svcs
Fleet
Information Technology
ix
 
  
 
Packet Pg. 302

&LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW

0D\RUWKH&LW\RI6DQ%HUQDUGLQR
-RKQ9DOGLYLD

:DWHU%RDUG
7RQL&DOOLFRWW3UHVLGHQW
:D\QH+HQGUL[3(9LFH3UHVLGHQW
'DYLG(0O\QDUVNL&RPPLVVLRQHU
5LNNH9-RKQVRQ&RPPLVVLRQHU
7KRPDV%ULFNOH\&RPPLVVLRQHU

$GPLQLVWUDWLRQ
0LJXHO-*XHUUHUR3(*HQHUDO0DQDJHU
5RELQ/2KDPD'HSXW\*HQHUDO0DQDJHU
6WHYH50LOOHU'LUHFWRURI:DWHU8WLOLW\
.HYLQ76WHZDUW3('LUHFWRURI:DWHU5HFODPDWLRQ
&\QWKLD-0RXVHU'LUHFWRURI)LQDQFH
-HQQLIHU/6KHSDUGVRQ'LUHFWRURI(QYLURQPHQWDO 5HJXODWRU\&RPSOLDQFH
0LVVLRQ6WDWHPHQW
7RPHHWWKHQHHGVRIWKHFRPPXQLW\E\SURYLGLQJVXVWDLQDEOHKLJKTXDOLW\ZDWHUVXSSO\ DQGZDVWHZDWHUVHUYLFHVLQWKHPRVWSURIHVVLRQDOHQYLURQPHQWDOO\UHVSRQVLEOHDQGFRVW HIIHFWLYHPDQQHUSRVVLEOH

2UJDQL]DWLRQ
7KH&LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQWZDVIRUPH GLQ XQGHUWKH
&KDUWHURIWKH&LW\RI6DQ%HUQDUGLQRDQGLVJRYHUQHGE\WKH:D WHU%RDUGZKRDUH DSSRLQWHGE\WKH0D\RURIWKH&LW\RI6DQ%HUQDUGLQR7KHPRVWUHFHQW&KDUWHUDSSURYHG E\YRWHUVLQ1RYHPEHUJDYHWKH:DWHU%RDUG³5HVSRQVLELOLW \WRRYHUVHHDQG PDQDJHWKH&LW\¶VZDWHUVXSSO\UHF\FOHGZDWHUZDVWHZDWHUFROO HFWLRQDQGWUHDWPHQW IXQFWLRQVLQDFFRUGDQFHZLWK6WDWH/DZ´7KH'HSDUWPHQWRSHUDW HGWKUHHHQWHUSULVH IXQGV
WKH:DWHU8WLOLW\(QWHUSULVH)XQGWKH6HZHU8WLOLW\(QWHUSULVH)XQGDQGWKH6HZHU &ROOHFWLRQ 8WLOLW\ (QWHUSULVH )XQG :DWHU VHUYLFH HQFRPSDVVHVWKH &LW\ ZLWK WKH H[FHSWLRQRIWKHHDVWHQGZKLFKLVVHUYHGE\(DVW9DOOH\:DWHU'LVWULFW6HZHUWUHDWPHQW VHUYLFHHQFRPSDVVHVDOORIWKH&LW\RI6DQ%HUQDUGLQRWKH&LW\RI/RPD/LQGDWKHIRUPHU 1RUWRQ$LU)RUFH%DVH3DWWRQ6WDWH+RVSLWDODQGSRUWLRQVRIW KH&LW\RI+LJKODQG VHUYLFHGE\(DVW9DOOH\:DWHU'LVWULFW6HZHUFROOHFWLRQVHUYL FHLVSURYLGHGZLWKLQWKH &LW\RI6DQ%HUQDUGLQRERXQGDULHV
x

Packet Pg.
303

203 N. Brea Blvd., Suite 203
Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022
,1'(3(1'(17$8',7256¶5(3257

7RWKH:DWHU%RDUG
&LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW
6DQ%HUQDUGLQR&DOLIRUQLD

5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV

Opinions

:H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV RI HDFK P DMRU IXQG RI WKH &LW\ RI 6DQ %HUQDUGLQR 0XQLFLSDO :DWHU 'HSDUWPHQW WKH ³'HSDUWPHQW´
D FRPSRQHQW XQLW RI WKH
&LW\RI6DQ%HUQDUGLQR&DOLIRUQLD
WKH³&LW\´
DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHG QRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH'HSDUWPHQW¶VEDVLFILQDQFLDOVWDWHPHQWV DVOLVWHGLQWKHWDEOHRIFRQWHQWV

,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHV HQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKH UHVSHFWLYHILQDQFLDOSRVLWLRQRIHDFKPDMRUIXQGRIWKH'HSDUWPHQWDVRI-XQHDQGWKHUHVSHFWLYH FKDQJHVLQILQDQFLDOSRVLWLRQDQGFDVKIORZVWKHUHRIIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFHZLWKDFFRXQWLQJ SULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD Basis for Opinions
:H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JH QHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD
*$$6
DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Auditing Standards LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV 2XU UHVSRQVLELOLWLHVXQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQ WKH$XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLW RIWKH)LQDQFLDO6WDWHPHQWVVHFWLRQRIRXUUHSRUW:HDUHUHTX LUHGWREHLQGHSHQGHQWRIWKH'HSDUWPHQW DQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHUHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJ WRRXUDXGLWV:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWHWRSURYLGH DEDVLVIRURXUDXGLWRSLQLRQV

Emphasis of Matter

Component Unit Reporting

$VGLVFXVVHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVWKHILQDQFL DOVWDWHPHQWVSUHVHQWRQO\WKH'HSDUWPHQW DQGGRQRWSXUSRUWWRDQGGRQRWSUHVHQWIDLUO\WKHILQDQFLDO SRVLWLRQRIWKH&LW\DVDZKROHDVRI -XQHDQGWKHFKDQJHVLQLWVILQDQFLDOSRVLWLRQIRUWK H\HDUWKHQHQGHGLQDFFRUGDQFHZLWK DFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVR I$PHULFD2XURSLQLRQVDUHQRWPRGLILHG ZLWKUHVSHFWWRWKLVPDWWHU
Change in Accounting Principle

$VGHVFULEHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVLQWKHILVFDO\HDUHQGHG-XQHWKH'HSDUWPHQW DGRSWHGQHZDFFRXQWLQJJXLGDQFH*$6%6WDWHPHQW1R Leases2XURSLQLRQLVQRWPRGLILHGZLWK UHVSHFWWRWKLVPDWWHU

Packet Pg.
304

7RWKH:DWHU%RDUG
&LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW
6DQ%HUQDUGLQR&DOLIRUQLD

Responsibilities of Management for the Financial Statements
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWD WLRQRIWKHVHILQDQFLDOVWDWHPHQWVLQ DFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH 8QLWHG6WDWHVRI$PHULFD DQGIRUWKH
GHVLJQ LPSOHPHQWDWLRQ DQG PDLQWHQDQFH RI LQWHUQDO FRQWURO UHOHYDQW WR WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRU HYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH'HSDUWPHQW¶VDELOLW\WRFRQWLQXH DVDJRLQJFRQFHUQIRUWZHOYHPRQWKVEH\RQGWKHILQDQFLDOVWDWHPHQWGDWHLQFOXGLQJDQ\FXUUHQWO\NQRZQ LQIRUPDWLRQWKDWPD\UDLVHVXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU
Auditor’s Responsibilities for the Audit of the Financial Statements
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUH IUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHV RXURSLQLRQ5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFH EXWLVQRWDEVROXWHDVVXUDQFHDQG WKHUHIRUH LV QRW D JXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGD QFH ZLWK *$$6 DQG Government Auditing Standards ZLOODOZD\VGHWHFWDPDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV7KH ULVNRI QRWGHWHFWLQJDPDWHULDOPLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVK LJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDV IUDXGPD\LQYROYHFROOXVLRQIRUJHU\LQWHQWLRQDORPLVVLRQVPL VUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDO FRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDOLIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKH DJJUHJDWH WKH\ ZRXOG LQIOXHQFH WKH MXGJPHQW PDGH E\ D UHDVRQDEOH XVHU EDVHG RQ WKH ILQDQFLDO VWDWHPHQWV

,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWK*$$6DQGGovernment Auditing StandardsZH

x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSW LFLVPWKURXJKRXWWKHDXGLW
x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKH ILQDQFLDOVWDWHPHQWVZKHWKHUGXHWR IUDXGRUHUURUDQGGHVLJQDQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHV LQFOXGHH[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDO VWDWHPHQWV

x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHV WKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG
x (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGW KHUHDVRQDEOHQHVVRIVLJQLILFDQW DFFRXQWLQJHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWK HRYHUDOOSUHVHQWDWLRQRIWKH ILQDQFLDOVWDWHPHQWV

x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYH QWVFRQVLGHUHGLQWKHDJJUHJDWH WKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH'HSDUWPHQW¶VDELOLW\WR FRQWLQXHDVDJRLQJFRQFHUQIRUD UHDVRQDEOHSHULRGRIWLPH

:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKH SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUV WKDWZHLGHQWLILHGGXULQJWKHDXGLW
2 Packet Pg.
305

7RWKH:DWHU%RDUG
&LW\RI6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW
6DQ%HUQDUGLQR&DOLIRUQLD

Other Reporting Responsibilities
Required Supplementary Information

$FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVR I$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶V GLVFXVVLRQDQGDQDO\VLVDQGUHTXLUHGSHQVLRQDQGRWKHUSRVWHPSOR\PHQWEHQHILWVVFKHGXOHVDVOLVWHGRQ WKHWDEOHRIFRQWHQWVEHSUHVHQWHGWRVXSSOHPHQWWKHEDVLFILQ DQFLDOVWDWHPHQWV6XFKLQIRUPDWLRQLVWKH UHVSRQVLELOLW\RIPDQDJHPHQWDQGDOWKRXJKQRWDSDUWRIWKHEDVLFILQDQFLDOVWDWHPHQWVLVUHTXLUHGE\WKH *RYHUQPHQWDO$FFRXQWLQJ6WDQGDUGV%RDUGZKRFRQVLGHUVLWWREHDQHVVHQWLDOSDUWRIILQDQFLDOUHSRUWLQJ IRUSODFLQJWKHEDVLFILQDQFLDOVWDWHPHQWVLQDQDSSURSULDWHRSHUDWLRQDOHFRQRPLFRUKLVWRULFDOFRQWH[W:H KDYHDSSOLHGFHUWDLQOLPLWHGSURFHGXUHVWRWKHUHTXLUHGVXSSOHP HQWDU\LQIRUPDWLRQLQDFFRUGDQFHZLWK DXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$ PHULFDZKLFKFRQVLVWHGRILQTXLULHVRI PDQDJHPHQWDERXWWKHPHWKRGVRISUHSDULQJWKHLQIRUPDWLRQDQGFRPSDULQJWKHLQIRUPDWLRQIRUFRQVLVWHQF\ ZLWKPDQDJHPHQW¶VUHVSRQVHVWRRXULQTXLULHVWKHEDVLFILQDQFL DOVWDWHPHQWVDQGRWKHUNQRZOHGJHZH REWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV:H GRQRWH[SUHVVDQRSLQLRQRUSURYLGHDQ\ DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVHWKHOLPLWHGSURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWR H[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH
Other Information
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQ WKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQ FRPSULVHVWKHLQWURGXFWRU\VHFWLRQDQGVWDWLVWLFDOVHFWLRQEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWV DQGRXUDXGLWRU¶VUHSRUWWKHUHRQ2XURSLQLRQVRQWKHILQDQFLDO VWDWHPHQWVGRHVQRWFRYHUWKHRWKHU LQIRUPDWLRQDQGZHGRQRWH[SUHVVDQRSLQLRQRUDQ\IRUPRIDVVXUDQFHWKHUHRQ
,QFRQQHFWLRQZLWKRXUDXGLWRIWKHILQDQFLDOVWDWHPHQWVRXUU HVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQ DQGFRQVLGHUZKHWKHUDPDWHULDOLQFRQVLVWHQF\H[LVWVEHWZHHQWK HRWKHULQIRUPDWLRQDQGWKHILQDQFLDO VWDWHPHQWVRUWKHRWKHULQIRUPDWLRQRWKHUZLVHDSSHDUVWREHPD WHULDOO\PLVVWDWHG,IEDVHGRQWKHZRUN SHUIRUPHGZHFRQFOXGHWKDWDQXQFRUUHFWHGPDWHULDOPLVVWDWHPHQWRIWKHRWKHULQIRUPDWLRQH[LVWVZHDUH UHTXLUHGWRGHVFULEHLWLQRXUUHSRUW

2WKHU5HSRUWLQJ5HTXLUHGE\Government Auditing Standards
,Q DFFRUGDQFH ZLWK Government Auditing Standards ZH KDYH DOVR LVVXHG RXU UHSRUW GDWHG 'HFHPEHURQRXUFRQVLGHUDWLRQRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQG RQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWV DQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLV DQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing StandardsLQFRQVLGHULQJ WKH'HSDUWPHQW¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH
%UHD&DOLIRUQLD
'HFHPEHU
3 Packet Pg.
306

7+,63$*(,17(17,21$//</()7%/$1.
4 Packet Pg.
307

MANAGEMENT’S DISCUSSION AND ANALYSIS

The City of San Bernardino Municipal Water Department (Department) is a water, sewer collection and treatment utility responsible for delivering high quality, economically priced water, sewer treatment and sewer collections services to a quarter of a mill ion customers in and around the City of San Bernardino, California. This section of the Depart ment’s annual financial report presents management’s analysis of the Department’s financial performance during the fiscal year that ended on June 30, 2022. Please read it in conjunction wit h the basic financial statements which follow this section.

All amounts in the Management’s Discussion and Analysis within text areas are in thousands unless otherwise noted.

Financial Highlights:

 The Department’s overall net position increased by $17.3 million or 5.5%.

 Operating revenues increased $2.7 million, 3.3% from the prior fiscal year. Revenues had a modest increase. On March 8
th, 2022, the Board approved a rate increase that became effective on April 1st, 2022, resulting from a Rate Structure Study. The Cost of Service and Rate Design created a simplified rate structure, meeting the goals of the Department to provide revenue stability, affordability and to accommodate the rising operational cost.

The simplified rate structure between the Sewer Utility and Sew er Collection fund will facilitate the merging of the funds in fiscal year 2023.

 Operating expenses decreased $5.2 million, 6.8% decrease from the prior fiscal year. The most significant variances were noted in the categories of elec tricity, chemicals, capital repair and maintenance offset by decreased changes in experienc e and actuarial assumptions for pension and other post-employment benefits, and depreciation expense decrease in the water fund as a result of asset useful life corrections in the current year.

 Net income/loss before capital contributions increased by $7.6 million.

 The Department’s current ratio (the ability to pay short-term obligations) was 6.9.

 Cash available (the ability to cover current expenses with cash) was 725 days.

Overview of the Financial Statements

The discussion and analysis are intended to serve as an introdu ction to the Department’s basic financial statements. The Department’s basic financial stateme nts are comprised of two components: the Financial Statements and the Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Information providing citywide financial results is available in the City’s Annual Comprehensive Financial Report.

Required Financial Statements

The financial statements of the Department report information about the Department using accounting methods similar to those used by private sector comp anies. These statements offer short-term and long-term financial information about its activi ties. The Statement of Net Position (pages 14-15) includes all of the Department’s investments in r esources (assets) and the 5 Packet Pg.
308

obligations to creditors (liabilities). It also provides the basis for evaluating the capital structure of the Department and assessing the liquidity and financial flexib ility of the Department. All of the current year’s revenues and expenses are accounted for in the Statement of Revenues, Expenses and Changes in Net Position. (page 17) This statement measures the success of the Department’s operations over the past year and can be used to d etermine whether the Department has successfully recovered all its costs through its user fees and other charges, profitability, and credit worthiness. The final required financial statement is the Statement of Cash Flows (pages 18-19). The primary purpose of this statement is t o provide information about the Department’s cash receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities and provides answers to que stions such as “where did cash come from, what was cash used for, and what was the change in c ash balance during the reporting period?”

Financial Analysis of the Department

Our analysis of the Department begins on page 6 of the financial statements. One of the most important questions to ask about the Department’s finances is “ Whether the Department, as a whole, is better off or worse off as a result of the year’s activities?” The Statement of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the Department’s activities in a way that will help answer this question. These two statements report the net position of the Department and changes in them. Measuring the change in the Department’s net position - the difference between assets and liabilities - is one way to measure financial health or financial position. Over time, increases o r decreases in the Department’s net assets are indications of whether its financial health is impro ving or deteriorating. However, one will need to consider other non-financial factors such as chang es in economic conditions, population growth, and zoning and new or changed government legislation.

Water Utility Fund

To begin our analysis, a summary of the Water Utility Fund’s Statement of Net Position is presented in Table A-1.

6 Packet Pg.
309

7KHWDEOHKLJKOLJKWVWKH:DWHU8WLOLW\WRWDOQHWSRVLWLRQLQFU HDVHGRUPLOOLRQLQILVFDO \HDU7KHIDYRUDEOHLQFUHDVHLQQHWSRVLWLRQLVSULPDULO\UHODWHGWRWKHLQFUHDVHLQWRWDODVVHWV

PLOOLRQ
7KHFKDQJHLQFOXGHVLQFUHDVHVLQFDVKDQGLQY HVWPHQWV
PLOOLRQ
DQG
LQFUHDVHLQJHQHUDODFFRXQWVUHFHLYDEOHV
PLOOLRQ

7RWDOUHYHQXHVLQFUHDVHGE\RUPLOOLRQ:DWHURSHUDW LQJUHYHQXHVUHIOHFWDPRGHVW LQFUHDVHGXHWRKLJKHUFRQVXPSWLRQDQGWKHUDWHLQFUHDVHHIIHFW LYH$SULO VW&DSLWDO FRQWULEXWLRQVDOVRLQFUHDVHGDVGHYHORSPHQWLQWKH&LW\LQFUHDV HGGXHWR3DQGHPLFUHVWULFWLRQV OLIWLQJGXULQJ)<7RWDOH[SHQVHVGHFUHDVHGRUPLOOLRQ6LJQLILFDQWYDULDQFHVZHUH QRWHGLQFDSLWDOUHSDLUVDQGPDLQWHQDQFH
PLOOLRQ
FKDQJHLQIDLUYDOXHRILQYHVWPHQWV

PLOOLRQ
RIIVHWE\IDYRUDEOHGHFUHDVHGFKDQJHVLQH[SHULHQFHD QGDFWXDULDODVVXPSWLRQVIRU SHQVLRQDQGRWKHUSRVWHPSOR\PHQWEHQHILWV
PLOOLRQ
DQG GHSUHFLDWLRQH[SHQVHGHFUHDVH

PLOOLRQ
DVDUHVXOWRIDVVHWXVHIXOOLIHFRUUHFWLRQVLQWKHFXUUHQW\HDU

7 Packet Pg.
310

7RWDOFDSLWDODVVHWVLQFUHDVHGE\RUPLOOLRQLQILVFD O\HDU7KH:DWHUIXQG FDSLWDOL]HGPLOOLRQLQYDULRXVDQQXDOUHSDLUVDQGPDLQWHQDQFHFDSLWDOSURMHFWVFRPSOHWHGDQG SODFHGLQVHUYLFHGXULQJWKHILVFDO\HDU7KHLQFUHDVHLVDOVR DWWULEXWHGWRDQLQFUHDVHLQ &RQVWUXFWLRQLQSURJUHVV
&,3
H[SHQGLWXUHVUHODWHGWR7\OHU0XQLV(QWHUSULVH5HVRXUFH3ODQQLQJ

(53
LQIRUPDWLRQV\VWHP
0LOOLRQ
DQGWKH:DWHU)DFLOLWLHV5HORFDWLRQ3URMHFW
PLOOLRQ

7KHGHSDUWPHQW$GGLWLRQDOLQIRUPDWLRQRQFDSLWDODVVHWVLVSUHV HQWHGLQ1RWHRIWKH1RWHVWR WKH%DVLF)LQDQFLDO6WDWHPHQWV

7RWDOORQJWHUPGHEWGHFUHDVHGE\RUPLOOLRQGXHWRD QQXDOGHEWVHUYLFHSD\PHQWV $GGLWLRQDOLQIRUPDWLRQRQORQJWHUPGHEWLVSUHVHQWHGLQ1RWHRIWKH1RWHVWR%DVLF)LQDQFLDO 6WDWHPHQWV

6HZHU8WLOLW\)XQG

8 Packet Pg.
311

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
23(%

'XULQJILVFDO\HDUWRWDOUHYHQXHVIRUWKH6HZHU8WLOLW\LQFUHDVHG RUPLOOLRQIURP
WKHSULRU\HDUSULPDULO\GXHWRDVHZHUUDWHLQFUHDVHWKDWFRPELQHGUDWHVIRUWKH6HZHU8WLOLW\DQG 6HZHU&ROOHFWLRQIXQGVDVDSSURYHGE\WKH%RDUGHIIHFWLYH$SULO VW7RWDOH[SHQVHV GHFUHDVHGRUPLOOLRQLQILVFDO\HDU6LJQLILFDQ WLQFUHDVHGYDULDQFHVZHUHQRWHG LQHOHFWULFLW\
PLOOLRQ
VOXGJHUHPRYDO
PLOOLRQ
U HSDLUVDQGPDLQWHQDQFH
PLOOLRQ

VKDUHRIMRLQWYHQWXUHSD\PHQWVFODVVLILHGDVRSHUDWLQJLQ)< PLOOLRQ
RIIVHWE\IDYRUDEOH
GHFUHDVHG FKDQJHV LQ H[SHULHQFH DQG DFWXDULDO DVVXPSWLRQV IRU SHQVLRQ DQG RWKHU SRVW HPSOR\PHQWEHQHILWV
PLOOLRQ

9 Packet Pg.
312

7RWDOFDSLWDODVVHWVLQFUHDVHGE\RUPLOOLRQLQILVFD O\HDUSULPDULO\GXHWR FRQVWUXFWLRQLQSURJUHVVH[SHQGLWXUHVUHODWHGWRWKH%ORZHU'HFHQWUDOL]DWLRQ3URMHFW PLOOLRQ

)ODUH5HSODFHPHQW3URMHFW
PLOOLRQ

DQGWKH'LJHVWHU%5H SODFHPHQW3ODQ
PLOOLRQ

0RUHLQIRUPDWLRQUHODWLQJWRFDSLWDODVVHWVFDQEHIRXQGLQ1RW HRIWKH1RWHVWRWKH%DVLF )LQDQFLDO6WDWHPHQWV

'XULQJWKH\HDUWKH6HZHU8WLOLW\¶VORQJWHUPGHEWGHFUHDVHGRUPLOOLRQZKLFKFDQEH DWWULEXWHGWRWKHDQQXDOGHEWVHUYLFHSD\PHQWV$GGLWLRQDOLQI RUPDWLRQRQORQJWHUPGHEWLV SUHVHQWHGLQ1RWHRIWKH1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV
6HZHU&ROOHFWLRQV8WLOLW\

$VFDQEHVHHQIURPWKHWDEOHDERYHWKH6HZHU&ROOHFWLRQV8WLOLW\QHWSRVLWLRQGHFUHDVHG RUPLOOLRQWRPLOOLRQLQILVFDO\HDU7KHGHFUHDVHLQQHWSRVLWLRQLVSULPDULO\UHODWHG WRWKHGHFUHDVHLQFXUUHQW\HDURSHUDWLRQV2WKHUIDFWRUVWRFR QVLGHUDUHWKHVKLIWRIFXUUHQWDQG QRQFXUUHQWDVVHWVYHUVXVFDSLWDODVVHWVUHODWLQJWRWUDQVIHUR IDVVHWVEHWZHHQWKH6HZHU &ROOHFWLRQ8WLOLW\DQG6HZHU8WLOLW\IXQG
10 Packet Pg.
313

'XULQJILVFDO\HDUWRWDOUHYHQXHVIRUWKH6HZHU&ROOHFWLR Q8WLOLW\GHFUHDVHGRU PLOOLRQIURPWKHSULRU\HDUUHVXOWLQJIURPWKHUDWHLQFUH DVHWKDWZDVHIIHFWLYH$SULO 6HZHU&ROOHFWLRQVUHYHQXHZDVUHFRUGHGLQWKH6HZHU7UHDWPHQWIXQGDVWKHUDWHVWXG\FRPELQHG WKH6HZHU7UHDWPHQWDQG6HZHU&ROOHFWLRQPRQWKO\FKDUJHDQGYDULDEOHUDWH7KHFRPELQHGUDWHV DUHEHLQJUHFRUGHGLQWKH6HZHU8WLOLW\IXQGHIIHFWLYH$SULO VW&DSLWDOFRQWULEXWLRQV LQFUHDVHGRUPLOOLRQIURPWKHSULRU\HDUSULPDULO\GXHWRDQLQFUHDVHLQVHZHUDGGHG IDFLOLW\FKDUJHV
FDSDFLW\FKDUJHV
DQGFRQWULEXWHGDVVHWVIURP GHYHORSHUV7RWDOH[SHQVHV LQFUHDVHGRUPLOOLRQLQILVFDO\HDU7KHLQFUHDV HLVSULPDULO\DWWULEXWHGWRWKH LQFUHDVHLQQRQRSHUDWLQJH[SHQVHUHODWLQJWRWKHFKDQJHLQIDLUYDOXHRILQYHVWPHQWV

7RWDOFDSLWDODVVHWVLQFUHDVHGE\RUPLOOLRQLQILVFDO\HDUGXHWRH[WHQVLYHUHSDLUV DQGUHKDELOLWDWLRQRIVHZHUFROOHFWLRQPDLQVDQGPDQKROHUHSDLUVDORQJZLWKWUDQVIHURIPDLQVIURP WKH6HZHU8WLOLW\)XQGGXULQJWKHILVFDO\HDU0RUHLQIRUPDWLRQ UHODWLQJWRFDSLWDODVVHWVFDQEH IRXQGLQ1RWHRIWKH1RWHVWRWKH%DVLF)LQDQFLDO6WDWHPHQWV 7KH6HZHU&ROOHFWLRQV8WLOLW\ GRHVQRWKDYHDQ\RXWVWDQGLQJGHEW
11 Packet Pg.
314

(FRQRPLF)DFWRUVDQG1H[W<HDU¶V%XGJHWVDQG5DWHV

7KH6HUYLFH$UHD
6HUYLFH$UHD
HFRQRP\VHUYHGE\WKH'HSDUWPHQ WFRQWLQXHVWRUHFRYHUIURP WKHGRZQWXUQLQWKHHFRQRP\FDXVHGE\WKH&29,'
3DQGHPLF 7KH&LW\KDVUHFHLYHGIXQGV
IURPWKH$PHULFDQ5HFRYHU\$FWWKDWZLOOKHOSVWLPXODWHHFRQRPL FJURZWKLQWKHDUHD7KH&LW\ KDVHQFXPEHUHGIRUWKH'HSDUWPHQWDSSUR[LPDWHO\PLOOLRQIUR PWKH$PHULFDQ5HFRYHU\$FW IXQGVWRIXQGWKH'HSDUWPHQW¶V/HDG6HUYLFH/DWHUDOFDSLWDOSURMHFW7KH'HSDUWPHQWZDVDOVR DEOHWRUHFRYHUDSSUR[LPDWHO\PLOOLRQIURPWKH&DOLIRUQLD $UUHDUDJH3D\PHQW3URJUDPIRU FXVWRPHUGHOLQTXHQFLHVUHODWHGWRWKH3DQGHPLF$GGLWLRQDOO\WKH'HSDUWPHQWZDVDSSURYHGIRU D6WDWH5HYROYLQJ)XQGVORDQIURPWKH6WDWH:DWHU5HVRXUFH&RQWURO%RDUGLQ0D\RIDQG DIHGHUDOJUDQWIURPWKH%XUHDXRI5HFODPDWLRQIRUGHVLJQDWHGF DSLWDOSURMHFWV'HYHORSPHQW ZLWKLQWKH&LW\FRQWLQXHVZKLFKKDVUHVXOWHGLQVHYHUDOQHZSURMHFWVIRUWKH'HSDUWPHQW
7KH 'HSDUWPHQW DGRSWHG D EDODQFHG EXGJHW IRU )LVFDO <HDU 7KH)LVFDO<HDUEXGJHWWDNHVLQWRFRQVLGHUDWLRQWKHUHVLGXDOHIIHFWVRIWKH3DQGHPLF ULVLQJRSHUDWLRQDOH[SHQVHVLQHOHFWULFLW\LQIODWLRQDQGIXQG LQJRXUFDSLWDOSURJUDPWRDGGUHVV DJLQJLQIUDVWUXFWXUH$GGLWLRQDOGHWDLOVUHJDUGLQJWKH'HSDUWP HQW¶VEXGJHWFDQEHIRXQGRQWKH 'HSDUWPHQW¶VZHEVLWH4XHVWLRQVRUUHTXHVWVIRULQIRUPDWLRQUH JDUGLQJWKH$GRSWHG%XGJHW VKRXOGEHGLUHFWHGWRWKH)LQDQFH'HSDUWPHQW

7KH 'HSDUWPHQW FRPSOHWHG D UDWH VWXG\ DQG D FRVWRIVHUYLFH VWXG\ IRU WKH ZDWHU VHZHU WUHDWPHQWDQGVHZHUFROOHFWLRQXWLOLWLHV$VDUHVXOWRIWKHV WXG\WKHZDWHU%RDUGDGRSWHGD \HDUUDWHLQFUHDVHIRUWKHZDWHUDQGVHZHUIXQGVHIIHFWLYH$S ULO7KHUHPDLQLQJ LQFUHDVHVDUHHIIHFWLYHDQQXDOO\VWDUWLQJ-XO\WKURXJK -XO\ 7KHVHQHZO\ DGRSWHGUDWHVWUXFWXUHVDQGLQFUHDVHVZLOODOORZIRUEHWWHUUHYHQXHVWDELOLW\IRUWKH'HSDUWPHQWDV FRVWVLQFUHDVHDQGGURXJKWLVDPDMRUFRQFHUQIRUWKH6WDWH &RQWDFWLQJWKH'HSDUWPHQW¶V'LUHFWRURI)LQDQFH

7KLVILQDQFLDOUHSRUWLVGHVLJQHGWRSURYLGHRXUFXVWRPHUVDQG FUHGLWRUVZLWKDJHQHUDORYHUYLHZ RIWKH'HSDUWPHQW¶VILQDQFHVDQGWRGHPRQVWUDWHWKH'HSDUWPHQW¶VDFFRXQWDELOLW\IRUWKHPRQH\ LWUHFHLYHV,I\RXKDYHTXHVWLRQVDERXWWKLVUHSRUWRUQHHGDGGLWLRQDOILQDQFLDOLQIRUPDWLRQSOHDVH FRQWDFWWKH'HSDUWPHQW¶VILQDQFHGHSDUWPHQWDW

12 Packet Pg.
315

%$6,&),1$1&,$/67$7(0(176
13 Packet Pg.
316

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
67$7(0(172)1(7326,7,21
-81(
7RWDO
$VVHWV

&XUUHQW

&DVKDQGLQYHVWPHQWV
5HFHLYDEOHV

$FFRXQWVQHW $FFUXHGLQWHUHVW

/HDVH 'XHIURPRWKHUHQWLWLHV ,QYHQWRULHV 3UHSDLGH[SHQVHV

7RWDO&XUUHQW$VVHWV

1RQFXUUHQW

,QYHVWPHQWLQMRLQWYHQWXUH5,; 1HW23(%DVVHW

5HVWULFWHGDVVHWV

&DVKDQGFDVKHTXLYDOHQWV

5HVWULFWHGIRUFDSLWDO

,QYHVWPHQWV

5HVWULFWHGIRUFRQVHQWGHFUHH

$FFUXHGLQWHUHVWFRQVHQWGHFUHH 3UHSDLG,QVXUDQFHFRQVHQWGHFUHH

&DSLWDODVVHWV

/DQGDQGHDVHPHQWV

&RQVWUXFWLRQLQSURJUHVV

'HSUHFLDEOHFDSLWDODVVHWV

/HVV
DFFXPXODWHGGHSUHFLDWLRQDQGDPRUWL]DWLRQ

7RWDO&DSLWDO$VVHWV1HW

7RWDO1RQFXUUHQW$VVHWV
7RWDO$VVHWV

'HIHUUHG2XWIORZVRI5HVRXUFHV

'HIHUUHGRXWIORZVSHQVLRQUHODWHG
'HIHUUHGRXWIORZV23(%UHODWHG

7RWDO'HIHUUHG2XWIORZVRI5HVRXUFHV

:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\
7KHQRWHVWRILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 14 Packet Pg.
317

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
67$7(0(172)1(7326,7,21
-81(
7RWDO:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\
/LDELOLWLHV

&XUUHQW

$FFRXQWVSD\DEOH

5HODWHGSDUWLHVSD\DEOH

$FFUXHGFRPSHQVDWLRQ

&ODLPVSD\DEOH

&RQVXPHUGHSRVLWV 'XHWRRWKHUJRYHUQPHQWV /HDVHSD\DEOH &XUUHQWSRUWLRQRIFRPSHQVDWHGDEVHQFHV

&XUUHQWSRUWLRQRIERQGVSD\DEOH
$FFUXHGLQWHUHVW

7RWDO&XUUHQW/LDELOLWLHV

1RQFXUUHQW

&RQVXPHUGHSRVLWV

$FFUXHGFRPSHQVDWHGDEVHQFHV

8QHDUQHGUHYHQXHFRQVHQWGHFUHH

/HDVHSD\DEOH

%RQGVSD\DEOH

1HWSHQVLRQOLDELOLW\

7RWDO1RQFXUUHQW/LDELOLWLHV

7RWDO/LDELOLWLHV

'HIHUUHG,QIORZVRI5HVRXUFHV

'HIHUUHGLQIORZVSHQVLRQUHODWHG

'HIHUUHGLQIORZV23(%UHODWHG

'HIHUUHGLQIORZVOHDVHVUHODWHG

7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV
1HW3RVLWLRQ

1HWLQYHVWPHQWLQFDSLWDODVVHWV

8QUHVWULFWHG

7RWDO1HW3RVLWLRQ

7KHQRWHVWRILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 15 Packet Pg.
318

7+,63$*(,17(17,21$//</()7%/$1.
16 Packet Pg.
319

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
67$7(0(172)5(9(18(6(;3(16(6
$1'&+$1*(6,1)81'1(7326,7,21
)257+(<($5(1'('-81(
,QWHUIXQG
(OLPLQDWLRQV 7RWDO
2SHUDWLQJ5HYHQXHV

6DOHVDQGVHUYLFHFKDUJHV

2WKHURSHUDWLQJUHYHQXHV
7RWDO2SHUDWLQJ5HYHQXHV

2SHUDWLQJ([SHQVHV

$GPLQLVWUDWLRQDQGFXVWRPHUVHUYLFH

8WLOLW\DGPLQLVWUDWLRQ

3ODQWRSHUDWLRQV

0DLQWHQDQFH

(QYLURQPHQWDOFRQWURO

'LVWULEXWLRQ (QJLQHHULQJDQGZDWHUTXDOLW\FRQWURO *HQHUDODGPLQLVWUDWLRQDQGRYHUKHDG

6KDUHRIMRLQWYHQWXUHSD\PHQWV 'HSUHFLDWLRQDQGDPRUWL]DWLRQ

7RWDO2SHUDWLQJ([SHQVHV

2SHUDWLQJ,QFRPH
/RVV

1RQRSHUDWLQJ5HYHQXHV
([SHQVHV

,QYHVWPHQWLQFRPH
ORVV

5HQWDOLQFRPH

1RQFDSLWDOJUDQWIXQGV

,QWHUHVWH[SHQVHDQGILVFDOFKDUJHV

*DLQ
ORVV
RQGLVSRVDORIFDSLWDODVVHWV 2WKHU

7RWDO1RQRSHUDWLQJ5HYHQXHV
([SHQVHV

1HW,QFRPH
/RVV
%HIRUH&DSLWDO&RQWULEXWLRQV

&DSLWDO&RQWULEXWLRQV

$FTXLVLWLRQIHHV &DSDFLW\IHHV

(3$JUDQWV

&DSLWDOFRQWULEXWLRQV 7RWDO&DSLWDO&RQWULEXWLRQV

&KDQJHVLQ1HW3RVLWLRQ

1HW3RVLWLRQDWWKH%HJLQQLQJRIWKH<HDU

5HVWDWHPHQWV %HJLQQLQJRI)LVFDO<HDUDVUHVWDWHG

1HW3RVLWLRQDWWKH(QGRIWKH<HDU

:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\
7KHQRWHVWRILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 17 Packet Pg.
320

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
67$7(0(172)&$6+)/2:6
)257+(<($5(1'('-81(
7RWDO
&DVK)ORZVIURP2SHUDWLQJ$FWLYLWLHV

&DVKUHFHLYHGIURPFXVWRPHUV &DVKSDLGWRHPSOR\HHVIRUVHUYLFHV

&DVKSDLGWRVXSSOLHUVIRUJRRGVDQGVHUYLFHV

&DVKSDLGWR5,;MRLQWYHQWXUHRSHUDWLRQV

1HW&DVK3URYLGHGE\
8VHGIRU

2SHUDWLQJ$FWLYLWLHV

&DVK)ORZVIURP1RQFDSLWDO)LQDQFLQJ$FWLYLWLHV

&RQVHQWGHFUHHLQVXUDQFHGUDZGRZQV

1HW&DVK3URYLGHGE\
1RQFDSLWDO)LQDQFLQJ$FWLYLWLHV

&DVK)ORZVIURP&DSLWDODQG
5HODWHG)LQDQFLQJ$FWLYLWLHV

&DSLWDOIHHVUHFHLYHG

3URFHHGVIURPVDOHVRIFDSLWDODVVHWV &DVKSDLGWRDFTXLUHFDSLWDODVVHWV

3ULQFLSDOSDLGRQFDSLWDOUHODWHGGHEW

,QWHUHVWSDLGRQFDSLWDOUHODWHGGHEW

&DSLWDOJUDQWSURFHHGV

1HW&DVK
8VHGIRU
&DSLWDODQG
5HODWHG)LQDQFLQJ$FWLYLWLHV

&DVK)ORZVIURP,QYHVWLQJ$FWLYLWLHV

&DVKUHFHLYHGIURPUHQWDOLQFRPH

&DVKUHFHLYHGIURPLQYHVWPHQWLQFRPH

1HW&DVK3URYLGHGE\,QYHVWLQJ$FWLYLWLHV

1HW,QFUHDVHLQ&DVKDQG&DVK(TXLYDOHQWV
&DVKDQG&DVK(TXLYDOHQWV-XO\

&DVKDQG&DVK(TXLYDOHQWV-XQH

5HFRQFLOLDWLRQRI&DVKDQG&DVK(TXLYDOHQWVWR
$PRXQWV5HSRUWHGRQWKH6WDWHPHQWRI1HW3RVLWLRQ

&DVKDQGLQYHVWPHQWV
5HVWULFWHGFDVKDQGLQYHVWPHQWV

/HVVWKRVHQRWPHHWLQJWKHGHILQLWLRQRIDFDVKHTXLYDOHQW

&DVKDQG&DVK(TXLYDOHQWV-XQH

:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\
7KHQRWHVWRILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 18 Packet Pg.
321

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
67$7(0(172)&$6+)/2:6
)257+(<($5(1'('-81(
7RWDO:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\
5HFRQFLOLDWLRQRI2SHUDWLQJ,QFRPHWR1HW&DVK
3URYLGHGE\
8VHGIRU
2SHUDWLQJ$FWLYLWLHV

2SHUDWLQJLQFRPH
ORVV

'HSUHFLDWLRQDQGDPRUWL]DWLRQ

$GMXVWPHQWVWRUHFRQFLOHRSHUDWLQJLQFRPH
ORVV
WR
QHWFDVKSURYLGHG
XVHG
E\RSHUDWLQJDFWLYLWLHV

,QFUHDVH
GHFUHDVHLQDFFRXQWVUHFHLYDEOH

'HFUHDVHLQGXHIURPRWKHUHQWLWLHV

'HFUHDVHLQLQYHQWRU\

,QFUHDVH
LQSUHSDLGH[SHQVH

'HFUHDVH
LQDFFRXQWVSD\DEOH

'HFUHDVH
LQUHODWHGSDUWLHVSD\DEOH

,QFUHDVH

GHFUHDVH
LQDFFUXHGFRPSHQVDWLRQ

,QFUHDVHLQFRPSHQVDWHGDEVHQFHV

,QFUHDVHLQFODLPVSD\DEOH

'HFUHDVH
LQFRQVXPHUGHSRVLWV

'HFUHDVH
LQ23(%REOLJDWLRQ

,QFUHDVHLQQHWSHQVLRQOLDELOLW\

7RWDO$GMXVWPHQWV

1HW&DVK3URYLGHGE\
8VHGIRU

2SHUDWLQJ$FWLYLWLHV

1RQ&DVK,QYHVWLQJ&DSLWDODQG)LQDQFLQJ$FWLYLWLHV

&DSLWDOFRQWULEXWLRQV 8QUHDOL]HGJDLQLQIDLUYDOXHRILQYHVWPHQWV

$PRUWL]DWLRQRIERQGSUHPLXPV

7KHQRWHVWRILQDQFLDOVWDWHPHQWVDUHDQLQWHJUDOSDUWRIWKLVVWDWHPHQW 19 Packet Pg.
322

7+,63$*(,17(17,21$//</()7%/$1.
20 Packet Pg.
323

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV
D 2UJDQL]DWLRQDQG2SHUDWLRQVRIWKH5HSRUWLQJ(QWLW\
7KH6DQ%HUQDUGLQR0XQLFLSDO:DWHU'HSDUWPHQW
'HSDUWPHQW
LVJ RYHUQHGXQGHUWKH
&KDUWHURIWKH&LW\RI6DQ%HUQDUGLQR
&LW\
$:DWHU%RDUGDSSRLQWHGE\WKH0D\RUDQG
DSSURYHGE\&LW\&RXQFLOKDV&KDUWHUGHILQHGSRZHUVZLWKIXOODXWKRULW\IRUDGPLQLVWUDWLRQ RIWKHZDWHUXWLOLW\DQGGHOHJDWHGDXWKRULW\IRUWKHVHZHUWUHDWPHQWXWLOLW\7KH'HSDUWPHQW KDVVHUYHGWKHFRPPXQLW\VLQFH

E %DVLVRI$FFRXQWLQJDQG0HDVXUHPHQW)RFXV

7KH'HSDUWPHQWUHSRUWVLWVDFWLYLWLHVDVHQWHUSULVHIXQGVZKLF KDUHXVHGWRDFFRXQWIRU RSHUDWLRQVWKDWDUHILQDQFHGDQGRSHUDWHGLQDPDQQHUVLPLODUW RDSULYDWHEXVLQHVV HQWHUSULVHZKHUHWKHLQWHQWRIWKH'HSDUWPHQWLVWKDWWKHFRVWV LQFOXGLQJGHSUHFLDWLRQ
RI
SURYLGLQJJRRGVRUVHUYLFHVWRWKHJHQHUDOSXEOLFRQDFRQWLQXL QJEDVLVEHILQDQFHGRU UHFRYHUHGSULPDULO\WKURXJKXVHUFKDUJHV5HYHQXHVDQGH[SHQVHVDUHUHFRJQL]HGRQWKH DFFUXDOEDVLV5HYHQXHVDUHUHFRJQL]HGLQWKHDFFRXQWLQJSHULRGLQZKLFKWKH\DUHHDUQHG DQGH[SHQVHVDUHUHFRJQL]HGLQWKHSHULRGLQFXUUHGUHJDUGOHVVRIZKHQWKHUHODWHGFDVK IORZWDNHVSODFH

2SHUDWLQJUHYHQXHVVXFKDVFKDUJHVIRUVHUYLFHV
ZDWHUVDOHVVHZHUVHUYLFHVDQGZDWHU

VHUYLFHV
UHVXOWIURPH[FKDQJHWUDQVDFWLRQVDVVRFLDWHGZLWKWKH SULQFLSDODFWLYLW\RIWKH 'HSDUWPHQW([FKDQJHWUDQVDFWLRQVDUHWKRVHLQZKLFKHDFKSDUW\UHFHLYHVDQGJLYHVXS HVVHQWLDOO\HTXDOYDOXHV1RQRSHUDWLQJUHYHQXHVVXFKDVSURSHUW\WD[HVDQGLQYHVWPHQW LQFRPH UHVXOW IURP QRQH[FKDQJH WUDQVDFWLRQV RU DQFLOODU\ DFWLYLWLHV LQ ZKLFK WKH 'HSDUWPHQW JLYHV

UHFHLYHV
YDOXH ZLWKRXW GLUHFWO\ UHFHLYLQJ
JLYLQJ
HTXDO YDOXH LQ
H[FKDQJH

:KHQERWKUHVWULFWHGDQGXQUHVWULFWHGUHVRXUFHVDUHDYDLODEOHI RUXVHWKH'HSDUWPHQW XVHVUHVWULFWHGUHVRXUFHVDQGWKHQXQUHVWULFWHGUHVRXUFHV
7KHPDMRUIXQGVRIWKH'HSDUWPHQWDUHGHVFULEHGEHORZ

:DWHU 8WLOLW\ )XQG±7KH:DWHU8WLOLW\(QWHUSULVH)XQG :DWHU8WLOLW\
LVXVHGWR
DFFRXQWIRUWKHRSHUDWLRQVRIWKH'HSDUWPHQW¶VZDWHUV\VWHPDQGUHODWHGUHYHQXHV
6HZHU 8WLOLW\ )XQG±7KH6HZHU8WLOLW\(QWHUSULVH)XQG 6HZHU8WLOLW\
LVXVHGWR
DFFRXQWIRUWKHRSHUDWLRQVRIWKH&LW\¶VZDVWHZDWHUWUHDWPHQWV \VWHPDQGUHODWHG UHYHQXHV7KH6HZHUFRQYH\DQFHV\VWHPLVXQGHUWKHGLUHFWLRQR IWKH&LW\¶V3XEOLF :RUNV'HSDUWPHQW

6HZHU &ROOHFWLRQ 8WLOLW\ )XQG ± 7KH 6HZHU &ROOHFWLRQ (QWHUSULVH )XQG

6HZHU&ROOHFWLRQ
LVXVHGWRDFFRXQWIRUWKHRSHUDWLRQVRIWKH&LW\¶VVHZHUFROOHFWLRQ V\VWHPDQGUHODWHGUHYHQXHV

$GPLQLVWUDWLYHDQGHQJLQHHULQJVHUYLFHVDUHSURYLGHGE\WKH:DWHU8WLOLW\WRWKH6HZHUDQG 6HZHU&ROOHFWLRQ8WLOLWLHV
21 Packet Pg.
324

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

F )LQDQFLDO5HSRUWLQJ

7KH'HSDUWPHQW¶VEDVLFILQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQFR QIRUPDQFHZLWKWKH SURYLVLRQVRI*RYHUQPHQWDO$FFRXQWLQJ6WDQGDUGV%RDUG
*$6%
6W DWHPHQW1R
³%DVLF)LQDQFLDO6WDWHPHQWV±DQG0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV±IRU6WDWHDQG /RFDO*RYHUQPHQWV´
*$6%1R
7KLVVWDWHPHQWHVWDEOLVKHGUHYLVHGILQDQFLDOUHSRUWLQJ UHTXLUHPHQWVIRUVWDWHDQGORFDOJRYHUQPHQWVWKURXJKRXWWKH8QLWHG6WDWHVIRUWKHSXUSRVH RIHQKDQFLQJWKHXQGHUVWDQGDELOLW\DQGXVHIXOQHVVRIILQDQFLDOUHSRUWV
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

G $VVHWV/LDELOLWLHVDQG1HW3RVLWLRQ

8VHRI(VWLPDWHV

7KHSUHSDUDWLRQRIWKHEDVLFILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHG DFFRXQWLQJSULQFLSOHVUHTXLUHVPDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDW DIIHFWWKHUHSRUWHGDPRXQWVRIDVVHWVOLDELOLWLHVDQGGLVFORVXUHVRIFRQWLQJHQWDVVHWV DQGOLDELOLWLHVDWWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVDQGWK HUHSRUWHGFKDQJHVLQQHW SRVLWLRQGXULQJWKHUHSRUWLQJSHULRG$FWXDOUHVXOWVFRXOGGLIIHUIURPWKRVHHVWLPDWHV
&DVKDQG,QYHVWPHQWV

)RUWKHSXUSRVHRIWKHVWDWHPHQWRIFDVKIORZVFDVKDQGFDVKH TXLYDOHQWVLQFOXGH KLJKO\OLTXLGLQYHVWPHQWV
LQFOXGLQJUHVWULFWHGDVVHWV
ZLWKD PDWXULW\RIWKUHHPRQWKV
RUOHVVZKHQSXUFKDVHG

,QYHVWPHQWVDUHUHSRUWHGLQWKHDFFRPSDQ\LQJEDODQFHVKHHWDWIDLUYDOXHH[FHSWIRU FHUWDLQFHUWLILFDWHVRIGHSRVLWDQGLQYHVWPHQWFRQWUDFWVWKDWDUHUHSRUWHGDWFRVWDVWKH\ DUHQRWWUDQVIHUDEOHDQGKDYHWHUPVWKDWDUHQRWDIIHFWHGE\FKDQJHVLQPDUNHWLQWHUHVW UDWHV

&KDQJHVLQIDLUYDOXHWKDWRFFXUGXULQJDILVFDO\HDUDUHUHFRJ QL]HGDVLQYHVWPHQW LQFRPHUHSRUWHGIRUWKDWILVFDO\HDU,QYHVWPHQWLQFRPHLQFOXG HVLQWHUHVWHDUQLQJV FKDQJHV LQ IDLU YDOXH DQG DQ\ JDLQV RU ORVVHV UHDOL]HG XSRQ WKH OLTXLGDWLRQ RI LQYHVWPHQWV

)DLU9DOXH0HDVXUHPHQWV

&HUWDLQDVVHWVDQGOLDELOLWLHVDUHUHTXLUHGWREHUHSRUWHGDWIDLUYDOXH7KHIDLUYDOXH IUDPHZRUNSURYLGHVDKLHUDUFK\WKDWSULRULWL]HVWKHLQSXWVWRY DOXDWLRQWHFKQLTXHV XVHGWRPHDVXUHIDLUYDOXH7KHKLHUDUFK\JLYHVWKHKLJKHVWSULRULW\WRXQDGMXVWHG TXRWHG SULFHV LQ DFWLYH PDUNHWV IRU LGHQWLFDO DVVHWV RU OLDELOL WLHV

/HYHO PHDVXUHPHQWV
DQG WKH ORZHVW SULRULW\ WR XQREVHUYDEOHLQSXWV
22 Packet Pg.
325

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

/HYHOPHDVXUHPHQWV
7KHWKUHHOHYHOVRIIDLUYDOXHKLHUDUFK\DUHGHVFULEHGDV

IROORZV

/HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\DUHXQDGMXVWHGTX RWHGSULFHVIRU LGHQWLFDODVVHWVRUOLDELOLWLHVLQDFWLYHPDUNHWV

/HYHO ,QSXWV RWKHU WKDQ TXRWHG SULFHV LQFOXGHG ZLWKLQ /HYHO W K D W D U H REVHUYDEOHIRUWKHDVVHWRUOLDELOLW\HLWKHUGLUHFWO\RULQGLU HFWO\DQGIDLUYDOXHLV GHWHUPLQHGWKURXJKWKHXVHRIPRGHOVRURWKHUYDOXDWLRQPHWKRGRORJLHVLQFOXGLQJ

x 4XRWHGSULFHVIRUVLPLODUDVVHWVRUOLDELOLWLHVLQDFWLYHPDUN HWV
x 4XRWHGSULFHVIRULGHQWLFDORUVLPLODUDVVHWVRUOLDELOLWLHVLQPDUNHWVWKDWDUH

LQDFWLYH

x ,QSXWVRWKHUWKDQTXRWHGSULFHVWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\
x ,QSXWVWKDWDUHGHULYHGSULQFLSDOO\IURPRUFRUURERUDWHGE\RE VHUYDEOH PDUNHWGDWDE\FRUUHODWLRQRURWKHUPHDQV

/HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\DUHXQREVHUYDEOHDQGVLJQLILFDQWWR WKHIDLUYDOXHPHDVXUHPHQW7KHVHXQREVHUYDEOHLQSXWVUHIOHFWW KH'HSDUWPHQW¶V RZQDVVXPSWLRQVDERXWWKHLQSXWVPDUNHWSDUWLFLSDQWVZRXOGXVH LQSULFLQJWKH DVVHWRUOLDELOLW\
LQFOXGLQJDVVXPSWLRQVDERXWULVN
7KHVHXQREVHUYDEOHLQSXWVDUH
GHYHORSHGEDVHGRQWKHEHVWLQIRUPDWLRQDYDLODEOHLQWKHFLUFXPVWDQFHVDQGPD\ LQFOXGHWKH'HSDUWPHQW¶VRZQGDWD

$FFRXQWV5HFHLYDEOH

&XVWRPHU RU WUDGH UHFHLYDEOHV DUH VKRZQ QHW RI DQ DOORZDQFH IRU XQFROOHFWLEOH DFFRXQWVEDVHGRQKLVWRULFDODQGPDQDJHPHQWHVWLPDWHV7UDQVDF WLRQVEHWZHHQ IXQGVWKDWDUHUHSUHVHQWDWLYHRIOHQGLQJRUERUURZLQJDUUDQJHPHQWVRXWVWDQGLQJDWWKH HQGRIWKHILVFDO\HDUDUHUHIHUUHGWRDV³LQWHUIXQGUHFHLYDEOHVSD\DEOHV´RU³DGYDQFHV WRIURP´RWKHUIXQGV$OOLQWHUIXQGWUDQVDFWLRQVDUHHOLPLQDWHGIRUILQDQFLDOUHSRUWLQJ
,QYHQWRU\

0DWHULDOVDQGVXSSOLHVLQYHQWRU\FRQVLVWSULPDULO\RIZDWHUPHWHUVSLSHDQGSLSHILWWLQJV IRUFRQVWUXFWLRQDQGUHSDLUWRWKH'HSDUWPHQW¶VZDWHUWUDQVPLVV LRQDQGGLVWULEXWLRQ V\VWHP DQG LWHPV QHFHVVDU\ IRU PDLQWHQDQFH DW WKH VHZHU WUHDWPHQW IDFLOLWLHV ,QYHQWRU\LVYDOXHGDWFRVWXVLQJDZHLJKWHGDYHUDJHPHWKRG,Q YHQWRU\LWHPVDUH FKDUJHGWRH[SHQVHDWWKHWLPHWKDWLQGLYLGXDOLWHPVDUHZLWKGU DZQIURPLQYHQWRU\RU FRQVXPHG

:DWHULQYHQWRU\LVVWDWHGDWLWVSXUFKDVHFRVWXVLQJWKHILUVW LQILUVWRXWPHWKRG ,QYHQWRU\LVUHFRUGHGZKHQSXUFKDVHGDQGH[SHQVHGDWWKHWLPHW KHLQYHQWRU\LV FRQVXPHG

3UHSDLG([SHQVHDQG'HSRVLW

&HUWDLQSD\PHQWVWRYHQGRUVUHIOHFWFRVWVRUGHSRVLWVDSSOLFDEOHWRIXWXUHDFFRXQWLQJ SHULRGVDQGDUHUHFRUGHGDVSUHSDLGLWHPVLQWKHEDVLFILQDQFLDOVWDWHPHQWV 23 Packet Pg.
326

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

&DSLWDO$VVHWVDQG5LJKWWR8VH$VVHWV

&DSLWDODVVHWVDFTXLUHGRUFRQVWUXFWHGDUHFDSLWDOL]HGDWKLVWR ULFFRVW'HSDUWPHQW SROLF\KDVVHWWKHFDSLWDOL]DWLRQWKUHVKROGIRUUHSRUWLQJFDSLWDODVVHWVDWDQGD OLIHH[SHFWDQF\RIDWOHDVW\HDUV2YHUKHDGLVFDSLWDOL]HGDWWKHUDWHRI RIODERU
DQG EHQHILWV RI PDWHULDO DQG VXSSOLHV DQG RI VLJQLILFDQW FRQWUDFWV 5LJKWWR8VHOHDVHGDVVHWVDUHGHILQHGE\WKH'HSDUWPHQWDVDVVHWVZLWKDQHVWLPDWHG XVHIXOOLIHLQH[FHVVRI\HDUVDQGZLWKDQLQLWLDOLQGLYLGXD OYDOXHRIRUPRUH 'HSUHFLDWLRQLVUHFRUGHGRQDVWUDLJKWOLQHEDVLVRYHUWKHHVWLPDWHGXVHIXOOLYHVRIWKH DVVHWVDVIROORZV

6RXUFHRIVXSSO\SODQW WR\HDUV
'LVSRVDOSODQWDQGLQWHUFHSWRUOLQHV WR\HDUV
2WKHUIDFLOLWLHV
VKRSVOHDVHKROG \DUGV
WR\HDUV
7RROVRIILFHHTXLSPHQW FRPPXQLFDWLRQV WR\HDUV
&RPSXWHUHTXLSPHQW WR\HDUV
$XWRPRWLYHDQGIOHHWHTXLSPHQW WR\HDUV

&RPSHQVDWHG$EVHQFHV

'HSDUWPHQWSROLF\LVWRSHUPLWHPSOR\HHVWRDFFXPXODWHDOLPLWH GDPRXQWRIHDUQHG YDFDWLRQDQGVLFNOHDYH9DULRXVQHJRWLDWLRQJURXSVKDYHGLIIHUHQWVHOOEDFNDQGFDVK RXWRSWLRQV$GGLWLRQDOO\FDVKRXWRSWLRQVXSRQUHWLUHPHQWRUGHDWKRIWKHHPSOR\HH YDU\EDVHGRQWKHQHJRWLDWLRQJURXS(PSOR\HHV¶YDFDWLRQDQGVLFNOHDYHEHQHILWVDUH UHFRJQL]HGDVDOLDELOLW\RIWKH'HSDUWPHQW

5HVWULFWHG$VVHWVDQG$PRXQWV3D\DEOHIURP5HVWULFWHG$VVHWV
$PRXQWVVKRZQDVUHVWULFWHGDVVHWVKDYHEHHQUHVWULFWHGE\ERQGLQGHQWXUHVRUDUHWR EHXVHGIRUVSHFLILHGSXUSRVHVEDVHGRQFRQWUDFWSURYLVLRQVVX FKDVERQGHGGHEW VHUYLFH&HUWDLQOLDELOLWLHVZKLFKDUHFXUUHQWO\SD\DEOHKDYHEHHQFODVVLILHGDVFXUUHQW OLDELOLWLHVSD\DEOHIURPUHVWULFWHGDVVHWVVLQFHDVVHWVKDYHEH HQUHVWULFWHGIRUWKHLU SD\PHQW

3HQVLRQV

)RUSXUSRVHVRIPHDVXULQJWKHQHWSHQVLRQOLDELOLW\GHIHUUHGRXWIORZVRIUHVRXUFHVDQG GHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVDQGSHQVLRQ H[SHQVHLQIRUPDWLRQ DERXWWKHILGXFLDU\QHWSRVLWLRQDQGDGGLWLRQVWRGHGXFWLRQVIU RPWKHILGXFLDU\QHW SRVLWLRQKDYHEHHQGHWHUPLQHGRQWKHVDPHEDVLVDVWKH\DUHUHS RUWHGE\WKH 'HSDUWPHQW )RU WKLV SXUSRVH EHQHILW SD\PHQWV
LQFOXGLQJ UHIXQGV RI HPSOR\HH

FRQWULEXWLRQV
DUHUHFRJQL]HGZKHQFXUUHQWO\GXHDQGSD\DEOHLQDFFRUGDQFHZLWKWKH EHQHILWWHUPV,QYHVWPHQWVDUHUHSRUWHGDWIDLUYDOXH
*$6% UHTXLUHV WKDW WKH UHSRUWHG UHVXOWV PXVW SHUWDLQ WR OLDELOLW\ DQG DVVHW LQIRUPDWLRQZLWKLQFHUWDLQGHILQHGWLPHIUDPHV)RUWKLVUHSRUWWKHIROORZLQJWLPHIUDPHV DUHXVHG

9DOXDWLRQ'DWH
9'
-XQH
0HDVXUHPHQW'DWH
0'
-XQH
0HDVXUHPHQW3HULRG
03 -XQHWR-XQH
24 Packet Pg.
327

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

)RUSXUSRVHVRIPHDVXULQJWKHQHW23(%OLDELOLW\GHIHUUHGRXWIORZVRIUHVRXUFHVDQG GHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWR23(%DQG23(%H[SHQVHLQIRUPDWLRQDERXW WKHILGXFLDU\QHWSRVLWLRQRIWKH'HSDUWPHQW¶VSODQ
23(%3ODQ
WKHDVVHWVRIZKLFK
DUHKHOGE\86%DQNLQDQLUUHYRFDEOHWUXVWDQGDGGLWLRQVWRG HGXFWLRQVIURPWKH 23(%3ODQ¶VILGXFLDU\QHWSRVLWLRQKDYHEHHQGHWHUPLQHGE\DQLQGHSHQGHQWDFWXDU\ )RUWKLVSXUSRVHEHQHILWSD\PHQWVDUHUHFRJQL]HGZKHQFXUUHQWO\GXHDQGSD\DEOHLQ DFFRUGDQFHZLWKWKHEHQHILWWHUPV,QYHVWPHQWVDUHUHSRUWHGDWIDLUYDOXH
*HQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVUHTXLUHWKDWWKHUHSRUWHGUHVXOWVPXVWSHUWDLQ WROLDELOLW\DQGILGXFLDU\QHWSRVLWLRQLQIRUPDWLRQZLWKLQFHUWDLQGHILQHGWLPHIUDPHV)RU WKLVUHSRUWWKHIROORZLQJWLPHIUDPHVDUHXVHG

9DOXDWLRQ'DWH -XQH
0HDVXUHPHQW'DWH -XQH
0HDVXUHPHQW3HULRG -XO\WR-XQH

'HIHUUHG2XWIORZV,QIORZV

,QDGGLWLRQWRDVVHWVWKH6WDWHPHQWRI1HW3RVLWLRQZLOOVRPHW LPHVUHSRUWDVHSDUDWH VHFWLRQRIGHIHUUHGRXWIORZVRIUHVRXUFHV7KLVVHSDUDWHILQDQFLDOVWDWHPHQWHOHPHQW GHIHUUHGRXWIORZVRIUHVRXUFHVUHSUHVHQWVFRQVXPSWLRQRIQHWDVVHWVWKDWDSSOLHVWRD IXWXUH SHULRG DQG VR ZLOO QRW EH UHFRJQL]HG DV DQ RXWIORZ RI UHVRXUFHV

H[SHQVHVH[SHQGLWXUHV
XQWLOWKHQ7KH'HSDUWPHQWKDVWZRLWH PVWKDWTXDOLI\IRU UHSRUWLQJLQWKLVFDWHJRU\
WKHGHIHUUHGRXWIORZVUHODWHGWRSHQVLRQVDQG23(%

,QDGGLWLRQWROLDELOLWLHVWKHVWDWHPHQWRIILQDQFLDOSRVLWLRQ ZLOOVRPHWLPHVUHSRUWD VHSDUDWHVHFWLRQIRUGHIHUUHGLQIORZVRIUHVRXUFHV7KLVVHSDUD WHILQDQFLDOVWDWHPHQW HOHPHQWGHIHUUHGLQIORZVRIUHVRXUFHVUHSUHVHQWDQDFTXLVLWLR QRIQHWDVVHWVWKDW DSSOLHVWRIXWXUHSHULRGVDQGZLOOQRWEHUHFRJQL]HGDVLQIORZ RIUHVRXUFHV

UHYHQXH

XQWLOWKDWWLPH7KH'HSDUWPHQWKDVWKUHHLWHPVWKDWTXDOLI\I RUUHSRUWLQJLQWKLV FDWHJRU\RIZKLFKWZRUHODWHWRGHIHUUHGLQIORZVUHODWHGWRSHQVLRQVDQG23(%/DVWO\ OHDVHVUHODWHGLWHPVIRUWKHDPRXQWRIWKHOHDVHUHFHLYDEOHSOX VDQ\OHDVHSD\PHQWV UHODWHGWRIXWXUHSHULRGVOHVVDQ\OHDVHLQFHQWLYHVSDLGWRRURQEHKDOIRIWKHOHVVHH DWRUEHIRUHWKHFRPPHQFHPHQWRIWKHOHDVHWHUP

,QWHUIXQG(OLPLQDWLRQV

7KHLQWHUIXQGHOLPLQDWLRQVFROXPQUHSUHVHQWVHQWULHVPDGHWRHO LPLQDWHLQWHUIXQG LQFRPHDQGH[SHQGLWXUHWUDQVDFWLRQVEHWZHHQWKHZDWHUXWLOLW\I XQGDQGWKHVHZHU XWLOLW\IXQGIRUWKHSXUSRVHVRIFRQVROLGDWHGILQDQFLDOVWDWHPHQWV

25 Packet Pg.
328

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

1HW3RVLWLRQ

7KHILQDQFLDOVWDWHPHQWVXWLOL]HDQHWSRVLWLRQSUHVHQWDWLRQ1HWSRVLWLRQLVFDWHJRUL]HG DVIROORZV

x 1HW,QYHVWPHQWLQ&DSLWDO$VVHWV±7KLVFRPSRQHQWRIQHWSRVLWLRQFRQVLVWV RIFDSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDQGUHGXFHG E\DQ\GHEW RXWVWDQGLQJDJDLQVWWKHDFTXLVLWLRQFRQVWUXFWLRQRULPSURYHPHQ WRIWKRVH DVVHWV

x 5HVWULFWHG 1HW 3RVLWLRQ ± 7KLV FRPSRQHQW RI QHW SRVLWLRQ FRQVLVWV RI FRQVWUDLQWVSODFHGRQQHWSRVLWLRQXVHWKURXJKH[WHUQDOFRQVWUD LQWVLPSRVHG E\ FUHGLWRUV JUDQWRUV FRQWULEXWRUV RU ODZV RU UHJXODWLRQV RIR W K H U JRYHUQPHQWVRUFRQVWUDLQWVLPSRVHGE\ODZWKURXJKFRQVWLWXWLRQD OSURYLVLRQV RUHQDEOLQJOHJLVODWLRQ

x 8QUHVWULFWHG1HW3RVLWLRQ±7KLVFRPSRQHQWRIQHWSRVLWLRQFRQVLVWVRIQHW SRVLWLRQWKDWGRHVQRWPHHWWKHGHILQLWLRQRIUHVWULFWHGRUQHW LQYHVWPHQWLQ FDSLWDODVVHWV

&DSLWDO&RQWULEXWLRQV

&RQWULEXWLRQV LQ DLG RI FRQVWUXFWLRQ UHSUHVHQW FDVK DQG XWLOLW\ SODQW DGGLWLRQV FRQWULEXWHGWRWKH'HSDUWPHQWE\SURSHUW\RZQHUVRUGHYHORSHUVGHVLULQJVHUYLFHVWKDW UHTXLUH FDSLWDO H[SHQGLWXUHV RU FDSDFLW\ FRPPLWPHQW ,Q DFFRUGD QFH ZLWK *RYHUQPHQWDO$FFRXQWLQJ6WDQGDUGV%RDUG6WDWHPHQW1RWKHFDSLWDOFRQWULEXWLRQV DUHUHFRUGHGRQWKH6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HWSRVLWLRQ
%XGJHWDU\3ROLFLHV

7KH 'HSDUWPHQW DGRSWV DQ DQQXDO EXGJHW IRU SODQQLQJ FRQWURO DQG HYDOXDWLRQ SXUSRVHV%XGJHWDU\FRQWURODQGHYDOXDWLRQDUHDIIHFWHGE\FRPS DULVRQVRIDFWXDO UHYHQXHV DQG H[SHQVHV ZLWK SODQQHG UHYHQXHV DQG H[SHQVHV IRU WKH SHULRG (QFXPEUDQFH DFFRXQWLQJ LV QRW XVHG WR DFFRXQW IRU FRPPLWPHQWV UHODWHG WR RXWVWDQGLQJFRQWUDFWVIRUFRQVWUXFWLRQDQGVHUYLFHV

,PSOHPHQWDWLRQRI1HZ$FFRXQWLQJ6WDQGDUGV

'XULQJWKH\HDUHQGHG-XQHWKH'HSDUWPHQWLPSOHPHQWHGWKHIROORZLQJQHZ DFFRXQWLQJ VWDQGDUG LVVXHG E\ WKH *RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUG

*$6%

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
26 Packet Pg.
329

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
5HSRUWLQJ(QWLW\DQG6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ 3ROLFLHV &RQWLQXHG

,PSDFWWR%HJLQQLQJ
1HW3RVLWLRQIRU)LVFDO
<HDU(QGLQJ-XQH

5LJKWWR8VH/HDVHG$VVHWV /HDVHV3D\DEOH

/HDVH5HFHLYDEOH

'HIHUUHG,QIORZ$PRXQWV)URP/HDVHV

1RWH
&LW\RI6DQ%HUQDUGLQR%DQNUXSWF\

:LWKRXWUHVHUYHVDQGIDFLQJDPLOOLRQEXGJHWGHILFLWLQ-XO\RIWKH&LW\GHWHUPLQHG WKDWLWZDVQRORQJHUDEOHWRPHHWLWVFRQWUDFWXDOREOLJDWLRQVDQGGHFODUHGDILVFDOHPHUJHQF\ 2Q$XJXVWWKH&LW\ILOHGDSHWLWLRQXQGHU&KDSWHU RI WKH8QLWHG6WDWHV%DQNUXSWF\
&RGHLQ5LYHUVLGHVHHNLQJWRDGMXVWLWVGHEWV7KH&LW\KDVVL QFHSURSRVHGD&KDSWHU SODQ
RIDGMXVWPHQWDQGWKDWSODQRIDGMXVWPHQWZDVFRQILUPHGRQ)HEUXDU\7KH&LW\¶VSODQ RIDGMXVWPHQWEHFDPHHIIHFWLYHRQ-XQH1RUHYHQXHVRIWKH'HSDUWPHQWZHUHXVHG WRSD\JHQHUDOFODLPVGXULQJWKHSHQGHQF\RIWKH&LW\¶VEDQNUXS WF\FDVHRUSXUVXDQWWRLWV FRQILUPHGSODQ,QDGGLWLRQQRJHQHUDOFODLPVRIWKH&LW\ZHU HVXFFHVVIXOO\DVVHUWHGDJDLQVW WKH'HSDUWPHQWRULWVUHYHQXHVGXULQJWKHSHQGHQF\RIWKH&LW\¶ VEDQNUXSWF\FDVH7KHSODQ RIDGMXVWPHQWGRHVQRWLPSDLURUDIIHFWWKHUHYHQXHVRIWKH'HS DUWPHQW7KH'HSDUWPHQW FRQWLQXHVWRKROGLWVUHYHQXHVLQVHJUHJDWHGDFFRXQWVDQGXVHV WKHPRQO\IRUWKHSXUSRVHV SURYLGHGIRUXQGHUVWDWHODZDQGWKH&LW\&KDUWHU

2Q6HSWHPEHUWK86%DQNUXSWF\-XGJH6FRWW&&ODUNVRQLVVXHGDQRUGHUGLVFKDUJLQJWKH &LW\RI6DQ%HUQDUGLQR¶VEDQNUXSWF\FDVHEULQJLQJDQHQGWRD SURFHVVWKDWEHJDQRYHUWHQ \HDUVDJR

1RWH
&DVKDQG,QYHVWPHQWV

&DVKDQGLQYHVWPHQWVDUHUHSRUWHGLQWKHDFFRPSDQ\LQJVWDWHPHQWRIQHWSRVLWLRQDVIROORZV

:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\ 7RWDO
&DVKDQGLQYHVWPHQWV
5HVWULFWHGLQYHVWPHQWV

5HVWULFWHGIRU&RQVHQW'HFUHH

3URFHHGIURP%RQG,VVXDQFH

7RWDO&DVKDQG,QYHVWPHQWV

27 Packet Pg.
330

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DVKDQG,QYHVWPHQWV
&RQWLQXHG

&DVKDQGLQYHVWPHQWVDW-XQHFRQVLVWHGRIWKHIROORZLQJ

:DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ
8WLOLW\ 7RWDO
&DVKRQ+DQG 'HSRVLWVZLWK)LQDQFLDO,QVWLWXWLRQV

,QYHVWPHQWV

5HVWULFWHGLQYHVWPHQWV

7RWDO&DVKDQG,QYHVWPHQWV

D ,QYHVWPHQWV$XWKRUL]HGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHDQG WKH'HSDUWPHQW¶V ,QYHVWPHQW3ROLF\

7KHWDEOHEHORZLGHQWLILHVWKHLQYHVWPHQWW\SHVWKDWDUHDXWKRUL]HGE\WKH'HSDUWPHQWDQG &RQVHQW'HFUHH
VHHQRWH
LQDFFRUGDQFHZLWKWKH&DOLIRUQLD *RYHUQPHQW&RGH

RUWKH&LW\¶VLQYHVWPHQWSROLF\ZKHUHPRUHUHVWULFWLYH 7KH WDEOHDOVRLGHQWLILHVFHUWDLQ
SURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGH
RUWKH&LW\¶VLQYHVWPHQWSROLF\ZKHUHPRUH

UHVWULFWLYH
WKDWDGGUHVVHVLQWHUHVWUDWHULVNFUHGLWULVNDQ GFRQFHQWUDWLRQRIFUHGLWULVN 'XHWRLWVORQJWHUPQDWXUHWKH&RQVHQW'HFUHHKDVEHHQH[SOLF LWO\H[HPSWHGIURP PD[LPXPPDWXULW\UHTXLUHPHQWVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHZKLFKOLPLWVPDWXULW\ RIPRVWLQYHVWPHQWVWRILYH\HDUV$OORWKHUDVSHFWVRIWKH&R QVHQW'HFUHHLQYHVWPHQW SROLF\DUHFRQVLVWHQWZLWKWKH&LW\¶VLQYHVWPHQWSROLF\
,QYHVWPHQW7\SH
'HSDUWPHQW
&RQVHQW
'HFUHH
0D[LPXP
RI3RUWIROLR
0D[LPXP
RI3RUWIROLR
86WUHDVXU\ \HDUV \HDUV 1RQH 1RQH
86DJHQF\ \HDUV \HDUV 1RQH 1RQH
%DQNHUVDFFHSWDQFHV GD\V GD\V
&RPPHUFLDOSDSHU GD\V GD\V
1HJRWLDEOH&'V \HDUV \HDUV
0HGLXPWHUPQRWHV \HDUV \HDUV
0RQH\PDUNHWPXWXDOIXQGV 1$ 1$
0RUWJDJHSDVVWKURXJK \HDUV \HDUV
/RFDO$JHQF\,QYHVWPHQW)XQG 1$ 1$ *XDUDQWHHGLQYHVWPHQW 1$ 1$ 1RQH 1RQH
0D[LPXP0DWXULW\

E ,QYHVWPHQWV$XWKRUL]HGE\'HEW$JUHHPHQWV

,QYHVWPHQWVRIGHEWSURFHHGVKHOGE\ERQGWUXVWHHDUHJRYHUQHGE\SURYLVLRQVRIWKHGHEW DJUHHPHQWVUDWKHUWKDQWKHJHQHUDOSURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHRUWKH &LW\¶VLQYHVWPHQWSROLF\,QYHVWPHQWVDXWKRUL]HGIRUIXQGVKHOG E\ERQGWUXVWHHLQFOXGH 86 7UHDVXU\ 2EOLJDWLRQV 86 *RYHUQPHQW 6SRQVRUHG (QWHUSULVH 6HFXULWLHV WKH &DOLIRUQLD /RFDO $JHQF\ ,QYHVWPHQW )XQG *XDUDQWHHG ,QYHVWPHQW &RQWUDFWV &RPPHUFLDO3DSHU/RFDO$JHQF\%RQGV%DQNHU¶V$FFHSWDQFHDQG0RQH\0DUNHW0XWXDO )XQGV7KHUHDUHQROLPLWDWLRQVRQWKHPD[LPXPDPRXQWWKDWFDQEHLQYHVWHGLQRQHLVVXHU PD[LPXPSHUFHQWDJHDOORZHGRUWKHPD[LPXPPDWXULW\RIDQLQYHVW PHQWH[FHSWIRUWKH PDWXULW\RI%DQNHU¶V$FFHSWDQFHZKLFKDUHOLPLWHGWRRQH\HDU 28 Packet Pg.
331

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DVKDQG,QYHVWPHQWV
&RQWLQXHG

F &XVWRGLDO&UHGLW5LVN

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

7KHPDUNHWYDOXHRIWKHSOHGJHGVHFXULWLHVLQWKHFROODWHUDOSRROPXVWHTXDODWOHDVW RIWKHWRWDODPRXQWGHSRVLWHGE\WKHSXEOLFDJHQFLHV&DOLIRUQ LDODZDOVRDOORZVILQDQFLDO LQVWLWXWLRQVWRVHFXUHWKH'HSDUWPHQW¶VGHSRVLWVE\SOHGJLQJILUVWWUXVWGHHGPRUWJDJHQRWHV KDYLQJDYDOXHRIRIWKHVHFXUHGSXEOLFGHSRVLWV
)RULQYHVWPHQWLGHQWLILHGKHUHLQDVKHOGE\ERQGWUXVWHHWKHE RQGWUXVWHHVHOHFWVWKH LQYHVWPHQWXQGHUWKHWHUPVRIWKHDSSOLFDEOHWUXVWDJUHHPHQWD FTXLUHVWKHLQYHVWPHQW DQGKROGVWKHLQYHVWPHQWRQEHKDOIRIWKHUHSRUWLQJJRYHUQPHQW
G ,QYHVWPHQWLQ6WDWH,QYHVWPHQW3RRO

7KH'HSDUWPHQWLVDYROXQWDU\SDUWLFLSDQWLQWKH/RFDO$JHQF\,QYHVWPHQW)XQG /$,)
WKDW
LVUHJXODWHGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHXQGHUWKHRYHUVLJKWRIWKH7UHDVXUHURIWKH 6WDWHRI&DOLIRUQLD7KHIDLUYDOXHRIWKH'HSDUWPHQW¶VLQYHVWPHQWLQWKLVSRROLVUHSRUWHGLQ WKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDWDPRXQWVEDVHGXSRQWKH'HSDUWPHQW¶VSURUDWD VKDUHRIWKHIDLUYDOXHSURYLGHGE\/$,)IRUWKHHQWLUH/$,)SR UWIROLR LQUHODWLRQWRWKH
DPRUWL]HGFRVWRIWKDWSRUWIROLR
7KHEDODQFHDYDLODEOHIRUZL WKGUDZDOLVEDVHGRQWKH DFFRXQWLQJUHFRUGVPDLQWDLQHGE\/$,)ZKLFKDUHUHFRUGHGRQDQ DPRUWL]HGFRVWEDVLV /$,)LVQRWUDWHGE\DQDWLRQDOO\UHFRJQL]HGVWDWLVWLFDOUDWLQJ RUJDQL]DWLRQEXWDVVWDWHG SUHYLRXVO\LWLVUHJXODWHGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHDQGLVWKHUHIRUHH[HPSWIURP UDWLQJUHTXLUHPHQWV

H ,QWHUHVW5DWH5LVN

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

29 Packet Pg.
332

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DVKDQG,QYHVWPHQWV
&RQWLQXHG

,QIRUPDWLRQDERXWWKHVHQVLWLYLW\RIWKHIDLUYDOXHVRIWKH'HS DUWPHQW¶VLQYHVWPHQWVWR PDUNHW LQWHUHVW UDWH IOXFWXDWLRQV LV SURYLGHG E\ WKH IROORZLQJWDEOH WKDW VKRZV WKH GLVWULEXWLRQRIWKH'HSDUWPHQW¶VLQYHVWPHQWVE\PDWXULW\GDWH

/HVVWKDQ 0RUHWKDQ
,QYHVWPHQW7\SH PRQWKV PRQWKV PRQWKV PRQWKV 7RWDO
86$JHQF\6HFXULWLHV
867UHDVXULHV

0HGLXP7HUP&RUSRUDWH1RWHV

1RQ86*RYHUQPHQWDQG6XSUDQDWLRQDO%RQGV
$VVHW%DFNHG6HFXULWLHV
0RQH\0DUNHW)XQGV /RFDO$JHQF\,QYHVWPHQW)XQG &RQVHQW'HFUHH

867UHDVXULHV

86$JHQF\$VVHW%DFNHG6HFXULWLHV 86$JHQF\&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQV 86$JHQF\6HFXULWLHV

&RUSRUDWH1RWHV

&HUWLILFDWHVRI'HSRVLW $VVHW%DFNHG6HFXULWLHV
0RQH\0DUNHW)XQGV

,QYHVWPHQWVZLWK)LVFDO$JHQW

0RQH\0DUNHW)XQGV

7RWDO,QYHVWPHQWV

0DWXULWLHV

D &UHGLW5LVN

*HQHUDOO\FUHGLWULVNLVWKHSRVVLELOLW\WKDWDQLVVXHURIDQ LQYHVWPHQWZLOOQRWIXOILOOLWV REOLJDWLRQWRWKHKROGHURIWKHLQYHVWPHQW7KLVLVPHDVXUHGE\WKHDVVLJQPHQWRIDUDWLQJ E\DQDWLRQDOO\UHFRJQL]HGVWDWLVWLFDOUDWLQJRUJDQL]DWLRQ3UHVHQWHGEHORZLVWKHPLQLPXP UDWLQJUHTXLUHGE\
ZKHUHDSSOLFDEOH
WKH&DOLIRUQLD*RYHUQPHQW &RGHWKH'HSDUWPHQW¶V
LQYHVWPHQWSROLF\RUGHEWDJUHHPHQWVDQGWKHDFWXDOUDWLQJDV RI\HDUHQGIRUHDFK LQYHVWPHQWW\SH

30 Packet Pg.
333

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DVKDQG,QYHVWPHQWV
&RQWLQXHG

0LQLPXP
,QYHVWPHQW7\SH 5DWLQJ 5DWLQJ 7RWDO
86$JHQF\6HFXULWLHV 1RQH $$
867UHDVXULHV ([HPSW ([HPSW
0HGLXP7HUP&RUSRUDWH1RWHV $$ $$$
1RQ86*RYHUQPHQWDQG6XSUDQDWLRQDO%RQGV $$ $$$
$VVHW%DFNHG6HFXULWLHV $$ $$$
0RQH\0DUNHW)XQGV $$ $$$
/RFDO$JHQF\,QYHVWPHQW)XQG 1RW5DWHG 1RW5DWHG &RQVHQW'HFUHH

867UHDVXULHV 1R/LPLW ([HPSW

86$JHQF\$VVHW%DFNHG6HFXULWLHV 1R/LPLW $$ 86$JHQF\&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQV $$ $$ 86$JHQF\6HFXULWLHV 1R/LPLW $$

&RUSRUDWH1RWHV $ $$
&HUWLILFDWHVRI'HSRVLW $ $
$VVHW%DFNHG6HFXULWLHV $$ $$$
0RQH\0DUNHW)XQGV $$ $$

,QYHVWPHQWVZLWK)LVFDO$JHQW

0RQH\0DUNHW)XQGV $$ $$

7RWDO,QYHVWPHQWV

E )DLU9DOXH0HDVXUHPHQW

7KH'HSDUWPHQWFDWHJRUL]HVLWVIDLUYDOXHLQYHVWPHQWVZLWKLQWK HIDLUYDOXHKLHUDUFK\ HVWDEOLVKHGE\JHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV7KH'HSDUWPHQWKDVWKHIROORZLQJ UHFXUULQJIDLUYDOXHPHDVXUHPHQWVDVRI-XQH

,QYHVWPHQW7\SH /HYHO /HYHO 7RWDO
86$JHQF\6HFXULWLHV 867UHDVXULHV 0HGLXP7HUP&RUSRUDWH1RWHV 1RQ86*RYHUQPHQWDQG6XSUDQDWLRQDO%RQGV

$VVHW%DFNHG6HFXULWLHV &RQVHQW'HFUHH

867UHDVXULHV

86$JHQF\$VVHW%DFNHG6HFXULWLHV 86$JHQF\&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQV 86$JHQF\6HFXULWLHV

&RUSRUDWH1RWHV $VVHW%DFNHG6HFXULWLHV 6XEWRWDO,QYHVWPHQWV6XEMHFWWR)DLU9DOXH

,QYHVWPHQWV1RW6XEMHFWWR)DLU9DOXH

7RWDO,QYHVWPHQWV

)DLU9DOXH+LHUDUFK\

31 Packet Pg.
334

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DSLWDO$VVHWV

D :DWHU8WLOLW\)XQG

&DSLWDODVVHWDFWLYLW\IRUWKHZDWHUXWLOLW\IRUWKHILVFDO\HDUHQGHG-XQH

%DODQFH
-XO\ $GGLWLRQV
'HOHWLRQV
7UDQVIHUV
%DODQFH
-XQH
1RQGHSUHFLDEOHDVVHWV

/DQGDQGHDVHPHQWV

&RQVWUXFWLRQLQSURJUHVV

7RWDOQRQGHSUHFLDEOHDVVHWV

'HSUHFLDEOHDVVHWV

:DWHUULJKWVZHOOVDQGSXPSLQJ

'LVWULEXWLRQV\VWHP

5LJKWRIXVHDVVHWV %XLOGLQJVSODQWVDQGVWRUHV

)LHOGDQGRIILFHHTXLSPHQW

7RWDOGHSUHFLDEOHDVVHWV

/HVV
DFFXPXODWHGGHSUHFLDWLRQ
:DWHUULJKWVZHOOVDQGSXPSLQJ

'LVWULEXWLRQV\VWHP

5LJKWRIXVHDVVHWV

%XLOGLQJVSODQWVDQGVWRUHV

)LHOGDQGRIILFHHTXLSPHQW

7RWDODFFXPXODWHGGHSUHFLDWLRQ

7RWDOGHSUHFLDEOHDVVHWVQHW

7RWDOFDSLWDODVVHWVQHW

E 6HZHU8WLOLW\)XQG

&DSLWDODVVHWDFWLYLW\IRUWKHVHZHUXWLOLW\IRUWKHILVFDO\HDUHQGHG-XQH

%DODQFH
-XO\ $GGLWLRQV
'HOHWLRQV
7UDQVIHUV
%DODQFH
-XQH
1RQGHSUHFLDEOHDVVHWV

/DQGDQGHDVHPHQWV &RQVWUXFWLRQLQSURJUHVV 7RWDOQRQGHSUHFLDEOHDVVHWV

'HSUHFLDEOHDVVHWV

3XPSLQJ

%XLOGLQJVSODQWVDQGVWRUHV

)LHOGDQGRIILFHHTXLSPHQW

7RWDOGHSUHFLDEOHDVVHWV

/HVV
DFFXPXODWHGGHSUHFLDWLRQ
3XPSLQJ

%XLOGLQJVSODQWVDQGVWRUHV

)LHOGDQGRIILFHHTXLSPHQW

7RWDODFFXPXODWHGGHSUHFLDWLRQ

7RWDOGHSUHFLDEOHDVVHWVQHW

7RWDOFDSLWDODVVHWVQHW

32 Packet Pg.
335

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&DSLWDO$VVHWV
&RQWLQXHG

F 6HZHU&ROOHFWLRQ8WLOLW\)XQG

&DSLWDODVVHWDFWLYLW\IRUWKHVHZHUFROOHFWLRQXWLOLW\IRUWKHILVFDO\HDUHQGHG-XQH

%DODQFH
-XO\ $GMXVWPHQW $GGLWLRQV
'HOHWLRQV
7UDQVIHUV
%DODQFH
-XQH
1RQGHSUHFLDEOHDVVHWV

&RQVWUXFWLRQLQSURJUHVV

7RWDOQRQGHSUHFLDEOHDVVHWV

'HSUHFLDEOHDVVHWV

%XLOGLQJVSODQWVVWRUH\DUGV
)LHOGDQGRIILFHHTXLSPHQW

6HZHU3LSHOLQHV
7RWDOGHSUHFLDEOHDVVHWV
/HVV
DFFXPXODWHGGHSUHFLDWLRQ
%XLOGLQJVSODQWVVWRUH\DUGV

)LHOGDQGRIILFHHTXLSPHQW

6HZHU3LSHOLQHV

7RWDODFFXPXODWHGGHSUHFLDWLRQ

7RWDOGHSUHFLDEOHDVVHWVQHW

7RWDOFDSLWDODVVHWVQHW

1RWH
/RQJWHUP/LDELOLWLHV

D :DWHU8WLOLW\)XQG

&KDQJHVLQORQJWHUPOLDELOLWLHVLQWKHZDWHUXWLOLW\IXQGIRUWKH\HDUHQGHG-XQH DUHDVIROORZV

%DODQFH
-XO\ $GGLWLRQV 5HGXFWLRQV
%DODQFH
-XQH
&XUUHQW
3RUWLRQ
/RQJWHUP
3RUWLRQ
%RQGV3D\DEOH

:DWHU5HYHQXH%RQG

%RQG3UHPLXP

7RWDO

:DWHU5HYHQXH%RQGV

2Q1RYHPEHUWKHZDWHUXWLOLW\LVVXHG:DWHU5HYHQXH%RQGVWR ILQDQFHWKHDFTXLVLWLRQDQGFRQVWUXFWLRQRIFHUWDLQZDWHUV\VWHPFDSLWDOLPSURYHPHQWV DQGWRUHIXQGRXWVWDQGLQJREOLJDWLRQV7KH:DWHU5HYHQXH%RQGVKDYHLQWHUHVWUDWHV UDQJLQJIURPWRZLWKPDWXULWLHVWKURXJK$XJXVW7KHERQGVDUHVHFXUHG E\UHYHQXHVSOHGJHGIRUWKHSD\PHQWRIGHEWVHUYLFH,QDGGLWL RQDSURYLVLRQWKDWLQ WKHHYHQWRIGHIDXOWWKHERQGWUXVWHHPD\WDNHZKDWHYHUDFWLRQDWODZRULQHTXLW\DV PD\DSSHDUQHFHVVDU\RUGHVLUDEOHWRFROOHFWWKHSD\PHQWVRIWKHGHEW 33 Packet Pg.
336

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
/RQJWHUP/LDELOLWLHV
&RQWLQXHG

'HEWVHUYLFHUHTXLUHPHQWVRQWKH:DWHU5HYHQXH%RQGDUHDVIROORZV

<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO

7RWDO

'HEW6HUYLFH&RYHUDJH

7KH:DWHU8WLOLW\)XQGLVUHTXLUHGWRPDLQWDLQQHWUHYHQXHVDGH TXDWHWRFRYHU RIDQQXDOGHEWVHUYLFH1HW5HYHQXHVPHDQVWKH5HYHQXHVIRUWKH )LVFDO<HDUOHVV 2SHUDWLRQDQG0DLQWHQDQFH&RVWVIRUVXFK)LVFDO<HDU'HEWVHUYLFHFRYHUDJHIRUWKH :DWHU8WLOLW\)XQGIRUWKH\HDUHQGHG-XQHZDVDVIROORZV

*URVVUHYHQXH
2SHUDWLQJH[SHQVHV
/HVV
GHSUHFLDWLRQH[SHQVH

1HWRSHUDWLQJH[SHQVHV
1RQRSHUDWLQJLQFRPH
OHVVJDLQRQGLVSRVDO
1HWUHYHQXHV

$QQXDOGHEWVHUYLFH

$FWXDOFRYHUDJHUDWLR

34 Packet Pg.
337

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
/RQJWHUP/LDELOLWLHV
&RQWLQXHG

E 6HZHU8WLOLW\)XQG

&KDQJHVLQORQJWHUPOLDELOLWLHVLQWKHVHZHUXWLOLW\IXQGIRUWKH\HDUHQGHG-XQH DUHDVIROORZV

%DODQFH
-XO\ $GGLWLRQV 5HGXFWLRQV
%DODQFH
-XQH
&XUUHQW
3RUWLRQ
/RQJWHUP
3RUWLRQ
%RQGV3D\DEOH

6HZHU5HYHQXH%RQG

%RQG3UHPLXP

7RWDO

6HZHU5HYHQXH%RQGV

2Q'HFHPEHUWKHVHZHUXWLOLW\LVVXHGRI6H ZHU7UHDWPHQW 5HYHQXH %RQGV WR ILQDQFH WKH DFTXLVLWLRQ DQG FRQVWUXFWLRQ RI DGGLWLRQDO FDSLWDO LPSURYHPHQWVWRWKHVHZHUXWLOLW\7KH6HZHU7UHDWPHQW5HYHQXH%RQGVKDYHLQWHUHVW UDWHVUDQJLQJIURPWRZLWKPDWXULWLHVWKURXJK$XJXVW 7KHERQGVDUH VHFXUHGE\UHYHQXHVSOHGJHGIRUWKHSD\PHQWRIGHEWVHUYLFH,QDGGLWLRQDSURYLVLRQ WKDWLQWKHHYHQWRIGHIDXOWWKHERQGWUXVWHHPD\WDNHZKDWHYH UDFWLRQDWODZRULQ HTXLW\DVPD\DSSHDUQHFHVVDU\RUGHVLUDEOHWRFROOHFWWKHSD\PHQWVRIWKHGHEW
'HEWVHUYLFHUHTXLUHPHQWVRQWKH6HZHU5HYHQXH%RQGDUHDVIROORZV

<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO

7RWDO

35 Packet Pg.
338

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
/RQJWHUP/LDELOLWLHV
&RQWLQXHG

'HEW6HUYLFH&RYHUDJH

7KH6HZHU8WLOLW\)XQGLVUHTXLUHGWRPDLQWDLQQHWUHYHQXHVDGHTXDWHWRFRYHU RIDQQXDOGHEWVHUYLFH*URVVUHYHQXHLVGHILQHGDV2SHUDWLQJ5HYHQXHFRPELQHGZLWK QRQRSHUDWLQJUHYHQXH'HEWVHUYLFHFRYHUDJHIRUWKH6HZHU8WLOLW\)XQGIRUWKH\HDU HQGHG-XQHZDVDVIROORZV

*URVVUHYHQXH
2SHUDWLQJH[SHQVHV

/HVV
GHSUHFLDWLRQH[SHQVH

1HWRSHUDWLQJH[SHQVHV
1RQRSHUDWLQJLQFRPH
ORVV

OHVVJDLQRQGLVSRVDO

1HWUHYHQXHV
$QQXDOGHEWVHUYLFH

$FWXDOFRYHUDJHUDWLR

1RWH
/HDVHV

7KH'HSDUWPHQWLPSOHPHQWHG*$6%6WDWHPHQW1RLQWKHILVFDO\HDUHQGHG-XQH 7KHSULPDU\REMHFWLYHRIWKLVVWDWHPHQWLVWRHQKDQFHWKHUHOHY DQFHDQGFRQVLVWHQF\RI LQIRUPDWLRQDERXWJRYHUQPHQWV
OHDVLQJDFWLYLWLHV7KLVVWDWHPH QWHVWDEOLVKHVDVLQJOHPRGHO IRUOHDVHDFFRXQWLQJEDVHGRQWKHSULQFLSOHWKDWOHDVHVDUHILQ DQFLQJVRIWKHULJKWWRXVHDQ XQGHUO\LQJDVVHW8QGHUWKLV6WDWHPHQWDOHVVHHLVUHTXLUHGWRUHFRJQL]HDOHDVHOLDELOLW\DQG DQLQWDQJLEOHULJKWWRXVHOHDVHDVVHWDQGDOHVVRULVUHTXLUHGWRUHFRJQL]HDOHDVHUHFHLYDEOH DQGDGHIHUUHGLQIORZRIUHVRXUFHV)RUDGGLWLRQDOLQIRUPDWLRQUHIHUWRWKHGLVFORVXUHVEHORZ
D /HDVHV5HFHLYDEOHDQG'HIHUUHG,QIORZVRI5HVRXUFHV
7KH'HSDUWPHQWOHDVHVODQGWRYDULRXVFRPSDQLHVIRULQVWDOODWLR QRIFHOOXODUWRZHUVDQG ILEHURSWLFFRPPXQLFDWLRQV7KHWHUPVUDQJHIURPPRQWKVWR PRQWKVDVRIWKH FRQWUDFW FRPPHQFHPHQW GDWH 7KH 'HSDUWPHQW DOVR OHDVHV ODQG WR/LWWOH /HDJXH ,QWHUQDWLRQDOWRRSHUDWHDVSRUWVFRPSOH[7KHWHUPLVPRQW KVDVRIWKHFRQWUDFW FRPPHQFHPHQWGDWH6RPHOHDVHVKDYHH[WHQVLRQRSWLRQVRIUDQJLQ JIURPPRQWKVWR \HDUV$QLQLWLDOOHDVHUHFHLYDEOHZDVUHFRUGHGLQWKHDPRXQ WRI $VRI
-XQHWKHYDOXHRIWKHOHDVHUHFHLYDEOHLV7KHYDOXHRIWKHGHIHUUHG LQIORZRIUHVRXUFHVDVRI-XQHZDV
DQGWKH'HSDUWPHQWUHFRJQL]HG
OHDVHUHYHQXHRI
GXULQJWKHILVFDO\HDU7KHDPRXQWRI UHYHQXHVUHFRJQL]HG GXULQJWKHILVFDO\HDUIRUYDULDEOHDQGRWKHUSD\PHQWVQRWSUHY LRXVO\LQFOXGHGLQWKH PHDVXUHPHQWRIWKHOHDVHUHFHLYDEOHZDV

36 Packet Pg.
339

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
/HDVHV
&RQWLQXHG

7KHSULQFLSDODQGLQWHUHVWSD\PHQWVWKDWDUHH[SHFWHGWRPDWXULW\DUHDVIROORZV

)LVFDO<HDU 3ULQFLSDO3D\PHQWV ,QWHUHVW3D\PHQWV 7RWDO3D\PHQWV

7RWDO

3ULQFLSDODQG,QWHUHVW5HTXLUHPHQWVWR0DWXULW\

E /HDVHV3D\DEOHDQG5LJKWWR8VH/HDVHG$VVHWV

2Q-XO\WKH'HSDUWPHQWHQWHUHGLQWRD
PRQWKOHDVHD V/HVVHHIRUWKHXVHRI
'HVLJQ6SDFH
0RGXODURIILFHEXLOGLQJ$QLQLWLDOOHDVHOL DELOLW\ZDVUHFRUGHGLQWKH DPRXQWRI$VRI-XQHWKHYDOXHRIWKHOHDVHOLDELOLW\LV7KH 'HSDUWPHQWLVUHTXLUHGWRPDNHPRQWKO\IL[HGSD\PHQWVRI 7KHOHDVHKDVDQ LQWHUHVWUDWHRI7KHEXLOGLQJVHVWLPDWHGXVHIXOOLIHZDVPRQWKVDVRIWKHFRQWUDFW FRPPHQFHPHQW7KHYDOXHRIWKHULJKWWRXVHDVVHWDVRI-XQHRIZLWK DFFXPXODWHGDPRUWL]DWLRQRILVLQFOXGHGZLWK%XLOGLQJV RQWKH/HDVH&ODVV DFWLYLWLHVWDEOHIRXQGEHORZ

7KH'HSDUWPHQWKDVH[WHQVLRQRSWLRQ
V
HDFKIRUPRQWKV

5LJKWWRXVHOHDVHGDVVHWVLQFOXGHWKHIROORZLQJDW-XQH

/HDVH7\SH 0DMRU&ODVVRI8QGHUO\LQJ$VVHW
$PRXQWRI
/HDVHG&DSLWDO
$VVHWV
$FFXPXODWHG
$PRUWL]DWLRQ
%XLOGLQJ 5LJKWWR8VH/HDVH%XLOGLQJ 7RWDO

)XWXUHSULQFLSDODQGLQWHUHVWUHTXLUHPHQWVWRPDWXULW\IRUHDFKOHDVHOLDELOLW\DUHDVIROORZV

)LVFDO<HDU
3ULQFLSDO
3D\PHQWV
,QWHUHVW
3D\PHQWV 7RWDO3D\PHQWV

7RWDO 3ULQFLSDODQG,QWHUHVW5HTXLUHPHQWVWR0DWXULW\

37 Packet Pg.
340

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&RPSHQVDWHG$EVHQFHV

&RPSHQVDWHGDEVHQFHVUHSUHVHQWWKHDPRXQWRIWKHDFFXPXODWHGYDFDWLRQZKLFKLVH[SHFWHG WREHOLTXLGDWHGZLWKIXWXUHUHVRXUFHV7KHZDWHUXWLOLW\IXQG VHZHUXWLOLW\IXQGDQGVHZHU FROOHFWLRQIXQGOLTXLGDWHSHUFHQWRIWKHFRPSHQVDWHGDEVHQFHVIRUEXVLQHVVW\SHDFWLYLWLHV 7KHUHLVQRIL[HGSD\PHQWVFKHGXOHIRUXQSDLGFRPSHQVDWHGDEVHQ FHV VHH1RWHIRU
DGGLWLRQDOLQIRUPDWLRQ
%DODQFH
-XO\ $GGLWLRQV 5HGXFWLRQV
%DODQFH
-XQH &XUUHQW3RUWLRQ
/RQJWHUP
3RUWLRQ
:DWHU8WLOLW\)XQG

6HZHU8WLOLW\)XQG

6HZHU&ROOHFWLRQ)XQG

7RWDO

1RWH
3HQVLRQ3ODQ

7KH'HSDUWPHQWLVFRQVLGHUHGWREHSDUWRIWKH&LW\RI6DQ%HUQ DUGLQR3(56SHQVLRQSODQ WKHUHIRUHDOOUHODWHGLQIRUPDWLRQLQFOXGHGLQWKLVQRWHUHIHUV WRWKH&LW\DVDZKROHXQOHVV VSHFLILFDOO\LQGLFDWLQJRWKHUZLVH$OOTXDOLILHGSHUPDQHQWDQG SUREDWLRQDU\HPSOR\HHVDUH HOLJLEOHWRSDUWLFLSDWHLQWKH'HSDUWPHQW¶V0LVFHOODQHRXV3ODQ DQDJHQWPXOWLSOHHPSOR\HU GHILQHGEHQHILWSHQVLRQSODQDGPLQLVWHUHGE\WKH&DOLIRUQLD3XE OLF(PSOR\HHV¶5HWLUHPHQW 6\VWHP
&DO3(56
ZKLFKDFWVDVDFRPPRQLQYHVWPHQWDQGDGPLQLV WUDWLYHDJHQWIRULWV SDUWLFLSDWLQJPHPEHUHPSOR\HUV%HQHILWSURYLVLRQVXQGHUWKH3 ODQDUHHVWDEOLVKHGE\6WDWH VWDWXWHDQG/RFDO*RYHUQPHQWUHVROXWLRQ&DO3(56LVVXHVSXEOLF O\DYDLODEOHUHSRUWVWKDW LQFOXGHDIXOOGHVFULSWLRQRIWKHSHQVLRQSODQVUHJDUGLQJEHQHI LWSURYLVLRQVDVVXPSWLRQVDQG PHPEHUVKLSLQIRUPDWLRQWKDWFDQEHIRXQGRQWKH&DO3(56ZHEVLWH $GGLWLRQDOGLVFORVXUHV DQGUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQUHJDUGLQJWKH&LW\¶VSOD QFDQEHIRXQGLQWKH&LW\¶V DXGLWHGILQDQFLDOVWDWHPHQWV

D %HQHILWVSURYLGHG

&DO3(56 SURYLGHV VHUYLFH UHWLUHPHQW DQG GLVDELOLW\ EHQHILWV DQQXDO FRVW RI OLYLQJ DGMXVWPHQWVDQGGHDWKEHQHILWVWRSODQPHPEHUVZKRPXVWEHSXE OLFHPSOR\HHVDQG EHQHILFLDULHV%HQHILWVDUHEDVHGRQ\HDUVRIFUHGLWHGVHUYLFHHTXDOWRRQH\HDURIIXOOWLPH HPSOR\PHQW7KH3ODQV¶SURYLVLRQVDQGEHQHILWVLQHIIHFWDWWKH PHDVXUHPHQWGDWHDUH VXPPDUL]HGDVIROORZV

+LUHGDWH
3ULRUWR
-DQXDU\
2QRUDIWHU
-DQXDU\
%HQHILWIRUPXOD # #
%HQHILWYHVWLQJVFKHGXOH \HDUVVHUYLFH \HDUVVHUYLFH %HQHILWSD\PHQWV PRQWKO\IRUOLIH PRQWKO\IRUOLIH
5HWLUHPHQWDJH
0RQWKO\EHQHILWVDVDRIHOLJLEOH
FRPSHQVDWLRQ WR WR
5HTXLUHGHPSOR\HHFRQWULEXWLRQUDWHV
5HTXLUHGHPSOR\HUFRQWULEXWLRQUDWHV
0LVFHOODQHRXV

38 Packet Pg.
341

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
3HQVLRQ3ODQ
&RQWLQXHG

E (PSOR\HHV&RYHUHG

$VRIWKH-XQHPHDVXUHPHQWGDWHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKH EHQHILWWHUPVRIWKH3ODQ

&LW\ZLGH 'HSDUWPHQW
,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJEHQHILWV
,QDFWLYHHPSOR\HHVHQWLWOHGWREXWQRW\HWUHFHLYLQJEHQHILWV $FWLYHHPSOR\HHV
7RWDO

F &RQWULEXWLRQ'HVFULSWLRQ

6HFWLRQ
F
RIWKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW/DZ
3(5/
UHTXLUHVWKDW
WKHHPSOR\HUFRQWULEXWLRQUDWHVIRUDOOSXEOLFHPSOR\HUVEHGHWHUPLQHGRQDQDQQXDOEDVLV E\WKHDFWXDU\DQGVKDOOEHHIIHFWLYHRQWKH-XO\IROORZLQJQRWLFHRIDFKDQJHLQWKHUDWH 7KHWRWDOSODQFRQWULEXWLRQVDUHGHWHUPLQHGWKURXJK&DO3(56¶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
G $FWXDULDO0HWKRGVDQG$VVXPSWLRQVXVHGWRGHWHUPLQH7RWDO3H QVLRQ/LDELOLW\
)RUWKHPHDVXUHPHQWSHULRGHQGHG-XQH
WKHPHDVXUHPHQW GDWH
WKHWRWDO
SHQVLRQOLDELOLW\ZDVGHWHUPLQHGE\UROOLQJIRUZDUGWKH-XQHWRWDOSHQVLRQOLDELOLW\ GHWHUPLQHGLQWKH-XQHYDOXDWLRQ7KH-XQHWRWDOSHQVLRQOLDELOLWLHVZHUH EDVHGRQWKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV

$FWXDULDO&RVW0HWKRG
(QWU\$JH1RUPDOLQDFFRUGDQFHZLWKWKHU HTXLUHPHQWVRI*$6% $FWXDULDO$VVXPSWLRQV

'LVFRXQW5DWH

,QIODWLRQ

6DODU\,QFUHDVHV
9DULHVE\(QWU\$JHDQG6HUYLFH
0RUWDOLW\5DWH7DEOH

'HULYHGXVLQJ&DO3(56
0HPEHUVKLS'DWDIRUDOO)XQGV
3RVW5HWLUHPHQW%HQHILW,QFUHDVH
7KHOHVVHURIFRQWUDFW&2/$RU XQWLO3XUFKDVLQJ3RZHU3URWHFWLRQ $OORZDQFH)ORRURQSXUFKDVLQJSRZHUDSSOLHVWKHUHDIWHU 7KH PRUWDOLW\ WDEOH XVHG ZDV GHYHORSHG EDVHG RQ &DO3(56VSHFLILF GDWD 7KH WDEOH LQFOXGHV \HDUV RI PRUWDOLW\ LPSURYHPHQWV XVLQJ WKH 6RFLHW\ RI $FWXDULHV 6FDOH RI VFDOH 03 )RU PRUH GHWDLOV RQ WKLV
WDEOH SOHDVH UHIHU WR WKH 'HFHPEHU H[SHULHQFH VWXG\ UHSRUW EDVHG RQ&DO3(56 GHPRJUDSKLF GDWD IURP

WR
WKDWFDQEHIRXQGRQWKH&DO3(56ZHEVLWH

$OORWKHUDFWXDULDODVVXPSWLRQVXVHGLQWKH-XQHYDOXD WLRQZHUHEDVHGRQWKH UHVXOWVRIDQDFWXDULDOH[SHULHQFHVWXG\IRUWKHSHULRGIURP

WRLQFOXGLQJXSGDWHV
WRVDODU\LQFUHDVHPRUWDOLW\DQGUHWLUHPHQWUDWHV7KH([SHULH QFH6WXG\UHSRUWFDQEH REWDLQHGDWWKH&DO3(56ZHEVLWHXQGHU)RUPVDQG3XEOLFDWLRQV 39 Packet Pg.
342

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
3HQVLRQ3ODQ
&RQWLQXHG

H 'LVFRXQW5DWH

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¶5HWLUHPHQW)XQG
3(5)
7KHFDVKIORZVXVHGL QWKHWHVWLQJZHUH
GHYHORSHG DVVXPLQJ WKDW ERWK PHPEHUV DQG HPSOR\HUV ZLOO PDNH WKHLU UHTXLUHG FRQWULEXWLRQVRQWLPHDQGDVVFKHGXOHGLQDOOIXWXUH\HDUV7KH VWUHVVWHVWUHVXOWVDUH SUHVHQWHGLQDGHWDLOHGUHSRUWFDOOHG³*$6%&URVVRYHU7HVWLQJ5 HSRUW´WKDWFDQEH REWDLQHGDW&DO3(56ZHEVLWHXQGHUWKH*$6%VHFWLRQ
7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJ DEXLOGLQJEORFNPHWKRGLQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ H[SHFWHGUHWXUQVQHW
RISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ
DUHGHYHORSHG IRUHDFKPDMRUDVVHW
FODVV

,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQVWDIIWRRNLQWRDFFRXQWERWKVKRUWWHUP DQGORQJWHUPPDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWH GSHQVLRQIXQG 3(5)

FDVKIORZV7DNLQJLQWRDFFRXQWKLVWRULFDOUHWXUQVRIDOOWKH3 XEOLF(PSOR\HHV5HWLUHPHQW )XQGV¶DVVHWFODVVHV
ZKLFKLQFOXGHVWKHDJHQWSODQDQGWZRFRVWVKDULQJSODQVRU3(5) $%DQG&IXQGV
H[SHFWHGFRPSRXQG

JHRPHWULF
UHWXUQVZHUH FDOFXODWHGRYHUWKH
VKRUWWHUP
ILUVW\HDUV
DQGWKHORQJWHUP
\HDUV
XVLQJDEXLOGLQJEORFNDSSURDFK
8VLQJWKHH[SHFWHGQRPLQDOUHWXUQVIRUERWKVKRUWWHUPDQGORQJ WHUPWKHSUHVHQWYDOXH RIEHQHILWVZDVFDOFXODWHGIRUHDFK3(5)IXQG7KHH[SHFWHGUDW HRIUHWXUQZDVVHWE\ FDOFXODWLQJWKHVLQJOHHTXLYDOHQWH[SHFWHGUHWXUQWKDWDUULYHGDWWKHVDPHSUHVHQWYDOXHRI EHQHILWVIRUFDVKIORZVDVWKHRQHFDOFXODWHGXVLQJERWKVKRUWWHUPDQGORQJWHUPUHWXUQV 7KHH[SHFWHGUDWHRIUHWXUQZDVWKHQVHWHTXDOWRWKHVLQJOHHT XLYDOHQWUDWHFDOFXODWHG DERYHDQGURXQGHGGRZQWRWKHQHDUHVWRQHTXDUWHURIRQHSHUFHQW
7KHWDEOHEHORZUHIOHFWVORQJWHUPH[SHFWHGUHDOUDWHRIUHWXUQE\DVVHWFODVV7KHUDWHRI UHWXUQZDVFDOFXODWHGXVLQJWKHFDSLWDOPDUNHWDVVXPSWLRQVDSSO LHGWRGHWHUPLQHWKH GLVFRXQWUDWHDQGDVVHWDOORFDWLRQ7KHWDUJHWDOORFDWLRQVKRZQZDVDGRSWHGE\WKH%RDUG HIIHFWLYHRQ-XO\

$VVHW&ODVV
&XUUHQW7DUJHW
$OORFDWLRQ
5HDO5HWXUQ
<HDUV
5HDO5HWXUQ
<HDUV
*OREDO(TXLW\

*OREDO)L[HG,QFRPH
,QIODWLRQ6HQVLWLYH
3ULYDWH(TXLW\
5HDO(VWDWH

/LTXLGLW\

$QH[SHFWHGLQIODWLRQRIXVHGIRUWKLVSHULRG
$QH[SHFWHGLQIODWLRQRI
XVHGIRUWKLVSHULRG

40 Packet Pg.
343

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
3HQVLRQ3ODQ
&RQWLQXHG

I 3HQVLRQ3ODQ)LGXFLDU\1HW3RVLWLRQ

7KHSODQILGXFLDU\QHWSRVLWLRQGLVFORVHGLQWKH*$6%DFFRXQWLQJYDOXDWLRQUHSRUWPD\ GLIIHUIURPWKHSODQDVVHWVUHSRUWHGLQWKHIXQGLQJDFWXDULDOYDOXDWLRQUHSRUWGXHWRVHYHUDO UHDVRQV)LUVWIRUWKHDFFRXQWLQJYDOXDWLRQV&DO3(56PXVWNHHSLWHPVVXFKDVGHILFLHQF\ UHVHUYHVILGXFLDU\VHOILQVXUDQFHDQG23(%H[SHQVHLQFOXGHGDVDVVHWV7KHVHDPRXQWV DUHH[FOXGHGIRUUDWHVHWWLQJSXUSRVHVLQWKHIXQGLQJDFWXDULDO YDOXDWLRQ,QDGGLWLRQ GLIIHUHQFHVPD\UHVXOWIURPHDUO\&RPSUHKHQVLYH$QQXDO)LQDQFLDO5HSRUWFORVLQJDQGILQDO UHFRQFLOHGUHVHUYHV

J &KDQJHVLQ1HW3HQVLRQ/LDELOLW\

7KHIROORZLQJWDEOHVKRZVWKH'HSDUWPHQW¶VSURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQOLDELOLW\ RIWKH&LW\¶VSODQRYHUWKHPHDVXUHPHQWSHULRG

7RWDO3HQVLRQ
/LDELOLW\
D

3ODQ)LGXFLDU\
1HW3RVLWLRQ
E

1HW3HQVLRQ
/LDELOLW\

F

D

E

%DODQFHDW

9'

%DODQFHDW

0'

1HW&KDQJHVGXULQJ

,QFUHDVH
'HFUHDVH

7KHQHWSHQVLRQOLDELOLW\RIWKHSODQLVPHDVXUHGDVRI-XQHDQGWKHWRWDOSHQVLRQ OLDELOLW\IRUWKHSODQXVHGWRFDOFXODWHWKHQHWSHQVLRQOLDELOLW\ZDVGHWHUPLQHGE\DQDFWXDULDO YDOXDWLRQRI-XQHUROOHGIRUZDUGWR-XQHXVL QJVWDQGDUGXSGDWH SURFHGXUHV7KHSURSRUWLRQRIWKHQHWSHQVLRQODELOLW\ZDVEDVH GRQDSURMHFWLRQRIWKH 'HSDUWPHQW¶VORQJWHUPVKDUHRIFRQWULEXWLRQVWRWKHSHQVLRQSODQUHODWLYHWRWKHSURMHFWHG FRQWULEXWLRQVRIDOOSDUWLFLSDWLQJHPSOR\HUVDFWXDULDOO\GHWHU PLQHG7KH'HSDUWPHQW¶V SURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQODELOLW\IRUWKHSODQDV RI-XQHDQG ZDVDVIROORZV

0LVFHOODQHRXV3ODQ
3URSRUWLRQ±-XQH
3URSRUWLRQ±-XQH
&KDQJH±,QFUHDVH
'HFUHDVH

41 Packet Pg.
344

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
3HQVLRQ3ODQ
&RQWLQXHG

K 6HQVLWLYLW\RIWKH1HW3HQVLRQ/LDELOLW\WR&KDQJHVLQWKH' LVFRXQW5DWH
7KHIROORZLQJSUHVHQWVWKHQHWSHQVLRQOLDELOLW\RIWKH3ODQDV RIWKH0HDVXUHPHQW'DWH FDOFXODWHGXVLQJWKHGLVFRXQWUDWHRISHUFHQWDVZHOODVZKDWWKHQHWSHQVLRQOLDELOLW\ ZRXOGEHLILWZHUHFDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLV SHUFHQWDJHSRLQWORZHU

SHUFHQW
RUSHUFHQWDJHSRLQWKLJKHU
SHUFHQW
WKDQWKHFXUUHQWUDWH

'LVFRXQW5DWH &XUUHQW'LVFRXQW 'LVFRXQW5DWH

5DWH

3ODQ
V1HW3HQVLRQ/LDELOLW\
'HSDUWPHQW$OORFDWLRQ

L 5HFRJQLWLRQRI*DLQVDQG/RVVHV

8QGHU*$6%JDLQVDQGORVVHVUHODWHGWRFKDQJHVLQWRWDOSHQVLRQOLDELOLW\DQGILGXFLDU\ QHWSRVLWLRQDUHUHFRJQL]HGLQSHQVLRQH[SHQVHV\VWHPDWLFDOO\RYHUWLPH
7KHILUVWDPRUWL]HGDPRXQWVDUHUHFRJQL]HGLQSHQVLRQH[SHQVHI RUWKH\HDUWKHJDLQRU ORVVRFFXUV7KHUHPDLQLQJDPRXQWVDUHFDWHJRUL]HGDVGHIHUUHG RXWIORZVDQGGHIHUUHG LQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVDQGDUHWREHUHFRJQL] HGLQIXWXUHSHQVLRQ H[SHQVH

7KHDPRUWL]DWLRQSHULRGGLIIHUVGHSHQGLQJRQWKHVRXUFHRIWKHJDLQRUORVV

'LIIHUHQFHEHWZHHQSURMHFWHGDQG
DFWXDOHDUQLQJV
\HDUVWUDLJKWOLQHDPRUWL]DWLRQ
$OORWKHUDPRXQWV 6WUDLJKWOLQH DPRUWL]DWLRQ RYHU WKH H[SHFWHG UHPDL QLQJ

VHUYLFH OLYHV RI DOO PHPEHUV WKDW DUH SURYLGHG ZLWK

EHQHILWV
DFWLYH LQDFWLYH DQG UHWLUHG

DV RI WKH EHJLQQLQJ
RIWKHPHDVXUHPHQWSHULRG

7KHH[SHFWHGDYHUDJHUHPDLQLQJVHUYLFHOLIHWLPH
($56/
LVFDOFXODWHGE\GLYLGLQJWKHWRWDO
IXWXUHVHUYLFH\HDUVE\WKHWRWDOQXPEHURISODQSDUWLFLSDQWV DFWLYHLQDFWLYHDQGUHWLUHG

7KH($56/IRUWKH3ODQIRUWKHPHDVXUHPHQWSHULRGHQGLQJ-XQH LV \HDUV
ZKLFKZDVREWDLQHGE\GLYLGLQJWKHWRWDOVHUYLFH\HDUVRI WKHVXPRIUHPDLQLQJ
VHUYLFHOLIHWLPHVRIWKHDFWLYHHPSOR\HHV
E\

WKHWRWDOQXPEHURISDUWLFLSDQWV
DFWLYH
LQDFWLYHDQGUHWLUHG
1RWHWKDWLQDFWLYHHPSOR\HHVDQGUHWLUH HVKDYHUHPDLQLQJVHUYLFH OLIHWLPHVHTXDOWR$OVRQRWHWKDWWRWDOIXWXUHVHUYLFHLVEDVHGRQWKHPHPEHUV¶SUREDELOLW\ RIGHFUHPHQWLQJGXHWRDQHYHQWRWKHUWKDQUHFHLYLQJDFDVKUHIXQG 42 Packet Pg.
345

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
3HQVLRQ3ODQ
&RQWLQXHG

M 3HQVLRQ([SHQVHDQG'HIHUUHG2XWIORZVDQG'HIHUUHG,QIORZVR I5HVRXUFHV5HODWHG WR3HQVLRQV

)RUWKHILVFDO\HDUHQGHG-XQHWKH'HSDUWPHQWUHFRJQL ]HGDSHQVLRQH[SHQVH RIIRUWKH3ODQ

$VRI-XQHWKH'HSDUWPHQWUHSRUWVRWKHUDPRXQWVIRUWKH3ODQDVGHIHUUHGRXWIORZ DQGGHIHUUHGLQIORZRIUHVRXUFHVUHODWHGWRSHQVLRQVDVIROORZV

'HIHUUHG2XWIORZVRI
5HVRXUFHV
'HIHUUHG,QIORZVRI
5HVRXUFHV
3HQVLRQFRQWULEXWLRQVVXEVHTXHQWWR
PHDVXUHPHQWGDWH 'LIIHUHQFHVEHWZHHQ([SHFWHGDQG$FWXDO
([SHULHQFH

1HW'LIIHUHQFHEHWZHHQ3URMHFWHGDQG$FWXDO
(DUQLQJVRQ3HQVLRQ3ODQ,QYHVWPHQWV 7RWDO
7KH UHSRUWHG DV GHIHUUHG RXWIORZV RI UHVRXUFHV UHODWHG WR HPSOR\HU FRQWULEXWLRQVVXEVHTXHQWWRWKHPHDVXUHPHQWGDWHZLOOEHUHFRJQL]HGDVDUHGXFWLRQRIWKH QHWSHQVLRQOLDELOLW\LQWKH\HDUHQGHG-XQH7KDWDQGRWKHUDPRXQWVUHSRUWHGDV GHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHGLQIORZVRIUHVRXUFH VUHODWHGWRSHQVLRQVZLOO EHUHFRJQL]HGDVSHQVLRQH[SHQVHDVIROORZV

)LVFDO<HDU(QGHG
-XQH

'HIHUUHG
2XWIORZV
,QIORZV
RI
5HVRXUFHV

1RWH

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

D 3ODQ'HVFULSWLRQ

7KH'HSDUWPHQWSURYLGHVKHDOWKEHQHILWVWRDOOTXDOLI\LQJUHWLU HHVDQGWKHLUVSRXVHVLQ DFFRUGDQFHZLWK0HPRUDQGXPVRI8QGHUVWDQGLQJXQGHUYDULRXVODER UDJUHHPHQWV7KH RWKHU SRVWHPSOR\PHQW EHQHILWV SODQ LV D VLQJOHHPSOR\HU SODQ DGPLQLVWHUHG E\ WKH 'HSDUWPHQW
43 Packet Pg.
346

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

&RQWLQXHG

E (PSOR\HHV&RYHUHG

(PSOR\HHVDUHHOLJLEOHIRUUHWLUHHKHDOWKEHQHILWVLIWKH\UHWL UHIURPWKH'HSDUWPHQWRQRU DIWHUDJHZLWKDWOHDVWRU\HDUVRIVHUYLFHGHSHQGLQJRQEDUJDLQLQJXQLWDQG DUHHOLJLEOHIRUD3(56SHQVLRQ

$VRIWKH-XQHPHDVXUHPHQWGDWHWKHIROORZLQJFXUUHQW DQGIRUPHUHPSOR\HHV ZHUHFRYHUHGE\WKHEHQHILWWHUPVXQGHUWKH23(%3ODQ

$FWLYHHPSOR\HHV

,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJEHQHILWV
,QDFWLYHHPSOR\HHVHQWLWOHGWREXWQRW\HWUHFHLYLQJEHQHILWV 7RWDO

F &RQWULEXWLRQV

7KHFRQWULEXWLRQUHTXLUHPHQWVRISODQPHPEHUVDQGWKH'HSDUWPHQWDUHHVWDEOLVKHGDQG PD\ EH DPHQGHG E\ WKH %RDUG 7KH UHTXLUHG FRQWULEXWLRQ LV EDVHG RQ SURMHFWHG SD\DV\RXJRILQDQFLQJUHTXLUHPHQWVZLWKDQDGGLWLRQDODPRXQW WRSUHIXQGEHQHILWVDV PD\EHGHWHUPLQHGDQQXDOO\E\WKH%RDUG7KH'HSDUWPHQWKDVHVWDEOLVKHGDQLUUHYRFDEOH WUXVWWRZKLFKSUHIXQGLQJFRQWULEXWLRQVDUHPDGH)RUWKHILVFDO\HDUHQGHG-XQH WKH'HSDUWPHQW¶VFDVKFRQWULEXWLRQVZHUH
DQGWKHDPRXQWRIFRQWULEXWLRQVLQ
WKHIRUPRIDQLPSOLHGVXEVLG\ZHUH

G 1HW23(%/LDELOLW\
$VVHW

7KH'HSDUWPHQW¶VQHW23(%OLDELOLW\
DVVHW
ZDVPHDVXUHGDVRI -XQHDQGWKH
WRWDO23(%OLDELOLW\XVHGWRFDOFXODWHWKHQHW23(%OLDELOLW\ DVVHW
ZDVGHWHUPLQHGE\DQ
DFWXDULDO YDOXDWLRQ GDWHG -XQH WKDW ZDV UROOHG IRUZDUG WR GHWHUPLQH WKH -XQH WRWDO 23(% OLDELOLW\ EDVHG RQ WKH IROORZLQJ DFWXDULDO PHWKRGV DQG

DVVXPSWLRQV

$FWXDULDO&RVW0HWKRG
(QWU\$JH1RUPDO
$FWXDULDO$VVXPSWLRQV

'LVFRXQW5DWH
,QIODWLRQ
0RUWDOLW\5DWH

&DO3(56

([SHULHQFH6WXG\
1RQ0HGLFDUHIRUGHFUHDVLQJWRDQXOWLPDWHUDWHRI LQ
0HGLFDUHIRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ
+HDOWKFDUH7UHQG5DWH

7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ23(%SODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJD EXLOGLQJEORFNPHWKRGLQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ H[SHFWHGUHWXUQVQHW
RI23(%SODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ
DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV
7KHVHUDQJHVDUHFRPELQHGWRSURGXFHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQE\ZHLJKWLQJ WKHH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQE\WKHWDUJHWDVVHWDO ORFDWLRQSHUFHQWDJHDQGE\ DGGLQJH[SHFWHGLQIODWLRQ

44 Packet Pg.
347

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

&RQWLQXHG

7KHWDUJHWDOORFDWLRQDQGEHVWHVWLPDWHVRIDULWKPHWLFUHDOUDW HVRIUHWXUQIRUHDFKPDMRU DVVHWFODVVDUHVXPPDUL]HGLQWKHIROORZLQJWDEOH

$VVHW&ODVV
7DUJHW
$OORFDWLRQ
([SHFWHG5HDO
5DWHRI5HWXUQ
)L[HGLQFRPH
*OREDO(TXLW\
$VVXPHGORQJWHUPUDWHRILQIODWLRQ ([SHFWHGORQJWHUPQHWUDWHRIUHWXUQ 7RWDO

H 'LVFRXQW5DWH

7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDO23(%OLDELOLW\ZDVSHUFHQW7KHSURMHFWLRQ RIFDVKIORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDW'HSDUWPHQW¶VFRQWULEXWLRQV ZLOOEHPDGHDWUDWHVHTXDOWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHV
%DVHGRQWKRVHDVVXPSWLRQVWKH23(%SODQ¶VILGXFLDU\QHWSRVLW LRQZDVSURMHFWHGWREH DYDLODEOHWRPDNHDOOSURMHFWHG23(%SD\PHQWVIRUFXUUHQWDFWLYHDQGLQDFWLYHHPSOR\HHV DQG EHQHILFLDULHV 7KHUHIRUH WKH ORQJWHUP H[SHFWHG UDWH RI UHWXUQ RQ 23(% SODQ LQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDO 23(%OLDELOLW\

I &KDQJHVLQWKH1HW23(%/LDELOLW\
$VVHW

7KHFKDQJHVLQWKHQHW23(%OLDELOLW\
DVVHW
DUHDVIROORZV
LQWKRXVDQGV

7RWDO23(% )LGXFLDU\1HW 1HW23(%
/LDELOLW\ 3RVLWLRQ /LDELOLW\
$VVHW

%DODQFHDW

PHDVXUHPHQWGDWH

&KDQJHVIRUWKH\HDU
6HUYLFHFRVW

,QWHUHVW &KDQJHVRIEHQHILWWHUPV $FWXDOYVH[SHFWHGH[SHULHQFH $VVXPSWLRQFKDQJHV &RQWULEXWLRQVHPSOR\HU

&RQWULEXWLRQVHPSOR\HH 1HWLQYHVWPHQWLQFRPH

%HQHILWSD\PHQWV

$GPLQLVWUDWLYHH[SHQVHV

1HW&KDQJHV

%DODQFHDW

PHDVXUHPHQWGDWH

45 Packet Pg.
348

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

&RQWLQXHG

J 6HQVLWLYLW\RIWKH1HW23(%/LDELOLW\
$VVHW
WR&KDQJHVLQ WKH'LVFRXQW5DWH

7KHIROORZLQJSUHVHQWVWKHQHW23(%OLDELOLW\
DVVHW
RIWKH'HSDUWPHQWLILWZHUHFDOFXODWHG
XVLQJDGLVFRXQWUDWHWKDWLVRQHSHUFHQWDJHSRLQWORZHURURQH SHUFHQWDJHSRLQWKLJKHU WKDQWKHFXUUHQWUDWHIRUPHDVXUHPHQWSHULRGHQGHG-XQH

'HFUHDVH

&XUUHQW
'LVFRXQW5DWH
,QFUHDVH

1HW23(%/LDELOLW\
$VVHW

K 6HQVLWLYLW\RIWKH1HW23(%/LDELOLW\WR&KDQJHVLQWKH+HDOWK&DUH&RVW7UHQG5DWHV
7KHIROORZLQJSUHVHQWVWKHQHW23(%OLDELOLW\RIWKH'HSDUWPHQWLILWZHUHFDOFXODWHGXVLQJ KHDOWKFDUHFRVWWUHQGUDWHVWKDWDUHRQHSHUFHQWDJHSRLQWORZH URURQHSHUFHQWDJHSRLQW KLJKHUWKDQWKHFXUUHQWUDWHIRUPHDVXUHPHQWSHULRGHQGHG-XQH

'HFUHDVH
3UH0HGLFDUH
0HGLFDUH
&XUUHQW+HDOWKFDUH
&RVW7UHQG5DWHV
3UH0HGLFDUH
0HGLFDUH
,QFUHDVH
3UH0HGLFDUH
0HGLFDUH
1HW23(%/LDELOLW\
$VVHW

L 5HFRJQLWLRQRI'HIHUUHG2XWIORZVDQG'HIHUUHG,QIORZVRI5HV RXUFHV
*DLQVDQGORVVHVUHODWHGWRFKDQJHVLQWRWDO23(%OLDELOLW\DQG ILGXFLDU\QHWSRVLWLRQDUH UHFRJQL]HGLQ23(%H[SHQVHV\VWHPDWLFDOO\RYHUWLPH

$PRXQWVDUHILUVWUHFRJQL]HGLQ23(%H[SHQVHIRUWKH\HDUWKHJ DLQRUORVVRFFXUV7KH UHPDLQLQJDPRXQWVDUHFDWHJRUL]HGDVGHIHUUHGRXWIORZVDQGGHIHUUHGLQIORZVRIUHVRXUFHV UHODWHGWR23(%DQGDUHWREHUHFRJQL]HGLQIXWXUH23(%H[SHQVH
7KHUHFRJQLWLRQSHULRGGLIIHUVGHSHQGLQJRQWKHVRXUFHRIWKHJ DLQRUORVV7KHQHW GLIIHUHQFH EHWZHHQ SURMHFWHG DQG DFWXDO HDUQLQJV RQ 23(% SODQ LQYHVWPHQWV DUH DPRUWL]HGRYHU\HDUVZKLOHDOORWKHUGHIHUUHGRXWIORZVDQGL QIORZVDUHDPRUWL]HGRYHU WKHDYHUDJHH[SHFWHGUHPDLQLQJVHUYLFHOLIHRISODQSDUWLFLSDQW V)RUWKH-XQH PHDVXUHPHQWGDWHWKHDYHUDJHH[SHFWHGUHPDLQLQJVHUYLFHOLIHLV\HDUV
M 23(%,QFRPHDQG'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV5HODW HGWR23(%
)RUWKHILVFDO\HDUHQGHG-XQHWKH'HSDUWPHQWUHFRJQL ]HG23(%LQFRPHRI
$VRIILVFDO\HDUHQGHG-XQHWKH'HSDUWPH QWUHSRUWHGGHIHUUHG RXWIORZVRIUHVRXUFHVUHODWHGWR23(%IURPWKHIROORZLQJVRXUFHV

'HIHUUHG2XWIORZV
RI5HVRXUFHV
'HIHUUHG,QIORZV
RI5HVRXUFHV
23(%FRQWULEXWLRQVVXEVHTXHQWWRPHDVXUHPHQWGDWH 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH

&KDQJHVLQDVVXPSWLRQV 1HWGLIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDOHDUQLQJVRQ23(% SODQLQYHVWPHQWV 7RWDO

46 Packet Pg.
349

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH

2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%

&RQWLQXHG

7KH UHSRUWHG DV GHIHUUHG RXWIORZV RI UHVRXUFHV UHODWHG WR FRQWULEXWLRQV VXEVHTXHQWWRWKH-XQHPHDVXUHPHQWGDWHZLOOEHUHFRJQL]HGDVDUHGXFWLRQRI WKHQHW23(%OLDELOLW\GXULQJWKHILVFDO\HDUHQGLQJ-XQH2WKHUDPRXQWVUHSRUWHG DVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWR23(%ZLOOEHUHFRJ QL]HGDVH[SHQVHDV

IROORZV

)LVFDO<HDU(QGHG
-XQH

'HIHUUHG
2XWIORZV
,QIORZV
RI
5HVRXUFHV

7KHUHDIWHU

7RWDO

1RWH
-RLQW9HQWXUHV

D &ROWRQ6DQ %HUQDUGLQR 5HJLRQDO 7HUWLDU\ 7UHDWPHQW DQG :DWHU 5HFODPDWLRQ $XWKRULW\

2Q$XJXVW

WKH&LW\RI6DQ%HUQDUGLQRWKURXJKWKH'HSD UWPHQWIRUPHGDMRLQW SRZHUVDXWKRULW\ZLWKWKH&LW\RI&ROWRQWRFRQVWUXFWRSHUDWH XVHDQGPDLQWDLQWHUWLDU\ ZDVWHZDWHU WUHDWPHQW GLVSRVDO DQG ZDWHU UHFODPDWLRQV V\VWHPV LQFOXGLQJ WKH 5HJLRQDO5DSLG,QILOWUDWLRQDQG([WUDFWLRQ)DFLOLW\
5,;
7KLV DXWKRULW\LVJRYHUQHGE\D
VHSDUDWHERDUGFRQVLVWLQJRIIRXUPHPEHUV
WZRDSSRLQWHGE\WKH&LW\RI6DQ%HUQDUGLQR
WKURXJK WKH 'HSDUWPHQW¶V %2:& DQG WZR DSSRLQWHG E\ WKH &LW\ &RXQFLO RI WKH &LW\RI&ROWRQ&RQVWUXFWLRQRI5,;ZDVDGPLQLVWHUHGE\WKH6DQWD$QD:DWHUVKHG3URMHFW $XWKRULW\DQGZDVVXEVWDQWLDOO\FRPSOHWHGGXULQJ

$GPLQLVWUDWLRQDQGRSHUDWLRQZDV
WXUQHGRYHUDWWKDWWLPH7KHFLWLHVRI6DQ%HUQDUGLQRDQG&ROWRQHDFKKDYHDPHDVXUDEOH HTXLW\LQWHUHVWLQWKHQHWSRVLWLRQRI5,;LQSURSRUWLRQWRLWVFRQWULEXWLRQVZKLFKDUHEDVHG RQDQVSOLWUHVSHFWLYHO\6XEVWDQWLDOO\DOORIWKH DVVHWVRI5,;DUHLQWKHIRUP RIFDSLWDODVVHWV$QQXDOUHYHQXHV
LQWKHIRUPRIFRQWULEXWLRQVIURPWKHWZRPHPEHUFLWLHV
DUHHTXDOWRDQQXDOH[SHQVHV7KH'HSDUWPHQW
VHTXLW\LQWHUHVW LQWKLVMRLQWYHQWXUHKDV
EHHQUHSRUWHGDVDQLQYHVWPHQWLQMRLQWYHQWXUHLQWKHDFFRPSDQ \LQJVWDWHPHQWRIQHW SRVLWLRQ%HORZDUHWKHPRVWFXUUHQWO\DYDLODEOHFRQGHQVHGDXG LWHGILQDQFLDOVWDWHPHQWV RI5,;DVRI-XQH7KH5,;FRPSOHWHILQDQFLDOVWDWHPH QWVPD\EHREWDLQHGDW &LW\ RI 6DQ %HUQDUGLQR 0XQLFLSDO :DWHU 'HSDUWPHQW DW 6RXWK ( 6WUHHW 6DQ%HUQDUGLQR&DOLIRUQLD

7RWDO
$VVHWV
/LDELOLWLHV
1HW3RVLWLRQ
5HYHQXHV
([SHQVHV

&KDQJHLQ1HW3RVLWLRQ

1HW3RVLWLRQ%HJLQQLQJRI<HDU

1HW3RVLWLRQ(QGRI<HDU
47 Packet Pg.
350

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
-RLQW9HQWXUHV
&RQWLQXHG

E :HVW(QG:DWHU'HYHORSPHQW7UHDWPHQWDQG&RQVHUYDWLRQ-RLQW 3RZHUV$XWKRULW\
2Q$XJXVW

WKH&LW\RI6DQ%HUQDUGLQRMRLQHGWKH:HVW(QG:DWHU'HYHORSPHQW 7UHDWPHQWDQG&RQVHUYDWLRQ-RLQW3RZHUV$XWKRULW\
:(-3$
DVD ILQDQFLQJYHKLFOHIRU
FRQVWUXFWLRQRIZDWHUIDFLOLWLHV$WKUHHPHPEHUERDUGFRQVLVW LQJRIRQHUHSUHVHQWDWLYH IURPHDFKDJHQF\¶VJRYHUQLQJERG\JRYHUQVWKH:(-3$7KLVMRLQ WYHQWXUHZDVIRUPHG WRSURYLGHDILQDQFLQJYHKLFOHIRUWKHWKUHHPHPEHUDJHQFLHV7KLVMRLQWYHQWXUHLVFXUUHQWO\ LQDFWLYH

1RWH
&RPPLWPHQWVDQG&RQWLQJHQFLHV

D 5LVN0DQDJHPHQW

5LVNPDQDJHPHQWDFWLYLWLHVDUHUHFRUGHGLQDOOXWLOLW\IXQGV6LJQLILFDQWORVVHVDUHFRYHUHG E\LQVXUDQFHIRUDOOPDMRUHYHQWVH[FHSWZRUNHUV¶FRPSHQVDWLRQIRUZKLFKWKH'HSDUWPHQW UHWDLQVULVNRIORVVLQFRQMXQFWLRQZLWKWKH&LW\RI6DQ%HUQDU GLQR¶VULVNPDQDJHPHQW SURJUDPIRUZRUNHUVFRPSHQVDWLRQ6HWWOHPHQWDPRXQWVKDYHQRWH [FHHGHGLQVXUDQFH FRYHUDJHIRUWKHFXUUHQW\HDURUWKHSULRUWKUHH\HDUV,QVXUDQ FHFRYHUDJHKDVEHHQ LQFUHDVHGRYHUWKHSDVWVHYHUDO\HDUV

7KH'HSDUWPHQWUHFRUGVDQHVWLPDWHGOLDELOLW\IRUZRUNHUV¶FRPSHQVDWLRQ&ODLPVOLDELOLWLHV DUHEDVHGRQHVWLPDWHVRIWKHXOWLPDWHFRVWRIUHSRUWHGFODLPVDQGDQHVWLPDWHIRUFODLPV LQFXUUHGEXWQRWUHSRUWHGEDVHGXSRQKLVWRULFDOH[SHULHQFH:RUNHUV¶FRPSHQVDWLRQFODLPV OLDELOLW\LVQRWGLVFRXQWHG

7KHIROORZLQJDUHWKHFKDQJHVLQDSSUR[LPDWHDJJUHJDWHOLDELOLW LHVIRUWKH\HDUHQGHG -XQHDQG-XQH'XULQJWKHSDVWWKUHHILVFDO FODLPV
\HDUVWKH
'HSDUWPHQWKDGQRVHWWOHPHQWVRUMXGJPHQWVWKDWH[FHHGHGSRROHGRULQVXUHGFRYHUDJH 7KHUHZHUHDOVRQRVLJQLILFDQWUHGXFWLRQVLQSRROHGRULQVXUHG OLDELOLW\FRYHUDJHLQILVFDO \HDU

&ODLPV/LDELOLWLHV :DWHU8WLOLW\ 6HZHU8WLOLW\
6HZHU
&ROOHFWLRQ 7RWDO
%DODQFH-XQH

&ODLPVDQGFKDQJHVLQHVWLPDWHV

%DODQFH-XQH

&ODLPVDQGFKDQJHVLQHVWLPDWHV %DODQFH-XQH

E /LWLJDWLRQ

,QWKHRUGLQDU\FRXUVHRIRSHUDWLRQVWKH'HSDUWPHQWLVVXEMHFWWRFODLPVDQGOLWLJDWLRQIURP RXWVLGHSDUWLHV$IWHUFRQVXOWDWLRQZLWKOHJDOFRXQVHOWKH'HSDUWPHQWEHOLHYHVWKHXOWLPDWH RXWFRPHRIVXFKPDWWHUVLIDQ\ZLOOQRWPDWHULDOO\DIIHFWLWVILQDQFLDOFRQGLWLRQ 48 Packet Pg.
351

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&RPPLWPHQWVDQG&RQWLQJHQFLHV
&RQWLQXHG

F &RQVWUXFWLRQ&RPPLWPHQWV

7KH IROORZLQJ VFKHGXOH VXPPDUL]HV WKH PDMRU FRQWUDFWXDO FRPPLWPHQWV DV RI -XQH

3URMHFW1DPH &RQWUDFW$PRXQW
([SHQVHVWR
GDWHDVRI
-XQH
5HPDLQLQJ
&RPPLWPHQWV
5HVHYRLU6HLVPLF8SJUDGH

7HUWLDU\7UHDWPHQW6\VWHP :DWHU5HFODPDWLRQ3URMHFW 'LJHVWHU%5HSODFHPHQW3URMHFW

:53(OHFWULFDO,QIUDVWUXFWXUH3URMHFW

6HZHU6SRW5HSDLU3URMHFW
:DWHU0DVWHU3ODQ
&RQVXOWDQW&RQVWUXFWLRQ0DQDJHPHQWDQG,QVSHFWLRQ6

1RWH
)HGHUDODQG6WDWH*UDQWV

*UDQWIXQGVUHFHLYHGE\WKH'HSDUWPHQWDUHVXEMHFWWRDXGLWE\ WKHJUDQWRUDJHQFLHV6XFK DXGLWFRXOGOHDGWRUHTXHVWVIRUUHLPEXUVHPHQWVWRWKHJUDQWRU DJHQFLHVIRUH[SHQGLWXUHV GLVDOORZHGXQGHUWHUPVRIWKHJUDQW0DQDJHPHQWRIWKH'HSDUWP HQWEHOLHYHVWKDWVXFK GLVDOORZDQFHVLIDQ\ZRXOGQRWEHVLJQLILFDQW7KH'HSDUWPHQWSURGXFHVD6LQJOH$XGLWWKDW GHWDLOVWKHXVHRIJUDQWDQG&RQVHQW'HFUHHIXQGV
VHHQRWHIRULQIRUPDWLRQRQWKH&RQVHQW
'HFUHH

1RWH
&RQVHQW'HFUHH

,Q

WKH&LW\RI6DQ%HUQDUGLQRILOHGDFRPSODLQWDJDLQVWW KH8QLWHG6WDWHVRI$PHULFD 'HSDUWPHQWRIWKH$UP\WRUHFRYHUGDPDJHVUHVSRQVHFRVWVDQGR WKHUDYDLODEOHUHPHGLHV UHODWLQJWRFRQWDPLQDWLRQDOOHJHGWRKDYHRULJLQDWHGDWD:RUOG:DU,,DUP\LQVWDOODWLRQNQRZQ DV&DPS2QR,Q0DUFKWKH8QLWHG6WDWHV'LVWULFW&RXUW &HQWUDO'LYLVLRQHQWHUHG MXGJPHQWLQWKHIRUPRIDFRQVHQWGHFUHHLQWKHPDWWHURI&LW \RI6DQ%HUQDUGLQRY 8QLWHG6WDWHVRI$PHULFD7KH&RQVHQW'HFUHHVHWWOHVWKH&LW\¶VDQGWKH6WDWH¶VFODLPVDULVLQJ IURPWKHJURXQGZDWHUFRQWDPLQDWLRQDOOHJHGO\FDXVHGE\WKH$UP\ 7KH&RQVHQW'HFUHH FRQWDLQVDQXPEHURISURYLVLRQVREOLJDWLQJWKH&LW\
WKURXJKWK H'HSDUWPHQW
WRRSHUDWHDQG
PDLQWDLQWKH1HZPDUN*URXQGZDWHU6XSHUIXQG6LWH
6LWH
7KH6LWHFRQVLVWVRIWZRRSHUDEOH
XQLWVWKH1HZPDUN2SHUDEOH8QLWDQGWKH0XVFR\2SHUDEOH8QLW 7KH1HZPDUN2SHUDEOH 8QLWZDVGHFODUHGRSHUDWLRQDODQGIXQFWLRQDOLQ

7KH0XVFR\2SHUDEOHXQLWZDVGHFODUHG
RSHUDWLRQDODQGIXQFWLRQDOLQ

7KH&RQVHQW'HFUHHSURYLGHGIRUDSD\PHQWRI
PLOOLRQIURPW KH$UP\WRWKH&LW\IRU
SHUIRUPDQFH RI WKH ZRUN RXWOLQHG LQ WKH &RQVHQW 'HFUHH 8SRQ DFFHSWDQFH RI WKH &RQVHQW'HFUHHWKH'HSDUWPHQWUHFHLYHGWLWOHWRDOOIDFLOLWLHVFRQVWUXFWHGE\WKH8QLWHG6WDWHV (QYLURQPHQWDO3URWHFWLRQ$JHQF\
(3$
RIWKH6LWHDQGDJUHHGWR RSHUDWHDQGPDLQWDLQWKH
JURXQGZDWHUH[WUDFWLRQDQGWUHDWPHQWV\VWHPIRUDSHULRGRI\HDUV7KH PLOOLRQSD\PHQW
FRQVLVWHGRI
PLOOLRQIRURSHUDWLRQVDQGPDLQWHQDQFHDQGPLOOLRQIRUWKHFRQVWUXFWLRQRI FHUWDLQFDSLWDOIDFLOLWLHVWKDWZRXOGEHUHTXLUHGLQWKHIXWXUH WKHIXQGVDUHVXEMHFWWRVWULFW
OLPLWDWLRQVFRQWDLQHGLQWKH&RQVHQW'HFUHHDVWRKRZWKHPRQH\PD\EHVSHQW

49 Packet Pg.
352

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17

127(672%$6,&),1$1&,$/67$7(0(176
&217,18('

)257+(<($5(1'('-81(

1RWH
&RQVHQW'HFUHH
&RQWLQXHG

3XUVXDQWWRWKH&RQVHQW'HFUHHPLOOLRQLQFOXGLQJLQWHUHVWHDUQHGKDVEHHQVHWDVLGHWR EHXVHGRQO\IRU
L
IXQGLQJFRQVWUXFWLRQRIWUHDWPHQWDQGGLUHFWO\UHODWHGWUDQVPLVVLRQV\VWHPV WKDWH[SDQGWKH'HSDUWPHQW¶VFDSDFLW\WRGHOLYHUSRWDEOHZDWHUDQG LL
IXQGLQJZRUNSHUIRUPHG
E\WKH'HSDUWPHQWWRFRPSOHWHFRQVWUXFWLRQRIWKH0XVFR\2SHUDE OH8QLWH[WUDFWLRQV\VWHP 7KHVHFDSLWDOIDFLOLW\IXQGVPD\QRWEHXVHGIRUFRVWVLQFXUUHG WRRSHUDWHPDLQWDLQUHSDLURU UHWURILWFRPSRQHQWVRIWKHVLWHH[WUDFWLRQRIWUHDWPHQWV\VWHPVFRQVWUXFWHGE\(3$
,Q0DUFKWKH'HSDUWPHQWHQWHUHGLQWRD*XDUDQWHHG,QYHVWPHQW&RQWUDFWZLWK$,*0DWFK )XQGLQJ&RUSRUDWLRQ7KH'HSDUWPHQWLQYHVWHG RIH[FHVV&RQVHQW'HFUHHIXQGV
LQWRDQLQWHUHVWEHDULQJ(VFURZ)XQGLQYHVWPHQWZLWKDQLQWHUHV WUDWHRI SHUDQQXP
7KHVHIXQGVZHUHLQYHVWHGWRSD\FRVWVDVVRFLDWHGZLWKWKHZDWH UIDFLOLWLHVGHILQHGLQWKH &RQVHQW'HFUHHIRU\HDUV$QDGGLWLRQDOPLOOLRQ ZDVXVHGWRSXUFKDVHD EOHQGHGLQVXUDQFHSROLF\WRSURYLGHDILQDQFLDOYHKLFOHWKDWSURYLGHVFRVWJDSFRYHUDJHIRUWKH ILUVW\HDUVRIH[SHQVHV

7KHWHUPVRIWKH*XDUDQWHHG,QYHVWPHQW&RQWUDFWRQO\SURYLGHGW KH'HSDUWPHQWZLWKWKH SRVLWLRQRIDVHFXUHGFUHGLWRUZLWKUHVSHFWWRDQ$,*EDQNUXSWF\$VFRQFHUQVDURVHUHJDUGLQJ $,*¶VILQDQFLDOFUHGLELOLW\LQ2FWREHU
WKH'HSDUWPHQWQHJRWLDWHGDQGDFFHSWHGD³SD\RXW´
LQWKHDPRXQWRIZKLFKUHSUHVHQWHGWKHSULQFLSDODQ GDFFUXHGLQWHUHVWDVRIWKDW GDWH7KHVHIXQGVDUHFXUUHQWO\LQYHVWHGLQDGLYHUVLILHGSRUWI ROLRPDQDJHGE\3)0$VVHW 0DQDJHPHQWDQGSUHVHQWLQPRUHGHWDLOLQ1RWH

1RWH
5HVWDWHPHQWRIQHWSRVLWLRQ

7KH'HSDUWPHQWUHVWDWHGWKHQHWSRVLWLRQLQWKH6HZHU&ROOHFWLR QIXQGLQWKHDPRXQWRI WKDWDURVHZKHQFRUUHFWLQJWKHFODVVLILFDWLRQRIDVVHWVDQGWKHLUXVHIXOOLYHV 50 Packet Pg.
353

5(48,5('6833/(0(17$5<,1)250$7,21
51 Packet Pg.
354

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
5(48,5('6833/(0(17$5<,1)250$7,21
6&+('8/(2)3523257,21$7(6+$5(2)7+(1(73(16,21/,$%,/,7< $62)-81()257+(/$677(1),6&$/<($56

0HDVXUHPHQW'DWH

3URSRUWLRQRIWKH1HW3HQVLRQ/LDELOLW\ 3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\
&RYHUHG3D\UROO

3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\DV
3HUFHQWDJHRI&RYHUHG3D\UROO
3ODQ)LGXFLDU\1HW3RVLWLRQDVD3HUFHQWDJHRIWKH7RWDO 3HQVLRQ/LDELOLW\
1RWHVWR6FKHGXOHRI3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LD ELOLW\ %HQHILW&KDQJHV
7KHILJXUHVDERYHLQFOXGHDQ\OLDELOLW\LPSDFWWKDWPD\KDYHUHVXOWHGIURPYROXQWDU\EHQHILWFKDQJHVWKDWRFFXUUHGDIWHUWK H -XQH
YDOXDWLRQ+RZHYHURIIHUVRI7ZR<HDUV$GGLWLRQDO6HUYLFH&UHGLW DND*ROGHQ+DQGVKDNHV
WKDWRFFXUUHGDIWHU WKH-XQH

YDOXDWLRQGDWHDUHQRWLQFOXGHGLQWKHILJXUHVDERYHXQOH VVWKHOLDELOLW\LPSDFWLVGHHPHGWREHPDWHULDOE\WKHSODQDFWXDU\ &KDQJHVRI$VVXPSWLRQV
1RQHLQ
RU,QGHPRJUDSKLFDVVXPSWLRQV DQGLQIODWLRQUDWHZHUHFKDQJHGLQDFFRUGDQFHWR WKH&DO3(56([SHULHQFH6WXG\DQG5HYLHZRI$VVXPSWLRQV'HFHPEHU7KHUHZHUHQRFKDQJHVLQWKHGLVFRXQWUDWH,QWKH GLVFRXQWUDWHZDVUHGXFHGIURPSHUFHQWWRSHUFHQW,QWKHUHZHUHQRFKDQJHV,QDPRXQWVUHSRUWHGUHIOHFWDQ DGMXVWPHQWRIWKHGLVFRXQWUDWHIURPSHUFHQW
QHWRIDGPLQL VWUDWLYHH[SHQVH
WRSHUFHQW
ZLWKRXWDUHGXFWLRQIRUSHQVLRQSODQ
DGPLQLVWUDWLYHH[SHQVH
,QDPRXQWVUHSRUWHGZHUHEDVHGRQWKHSHUFHQWGLVFRXQWUDWH

+LVWRULFDO LQIRUPDWLRQ LV UHTXLUHG RQO\ IRU PHDVXUHPHQW IRU ZKLFK *$6% LV DSSOLFDEOH )LVFDO <HDU ZDV WKH ILUVW \HDU RI LPSOHPHQWDWLRQWKHUHIRUHRQO\HLJKW\HDUVDUHVKRZQ
52 Packet Pg.
355

53 Packet Pg.
356

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
5(48,5('6833/(0(17$5<,1)250$7,21
6&+('8/(2)3(16,213/$1&2175,%87,216
$62)-81()257+(/$677(1),6&$/<($56

$FWXDULDOO\'HWHUPLQHG&RQWULEXWLRQ

&RQWULEXWLRQLQ5HODWLRQWRWKH$FWXDULDOO\
'HWHUPLQHG&RQWULEXWLRQ

&RQWULEXWLRQ'HILFLHQF\
([FHVV
&RYHUHG3D\UROO

&RQWULEXWLRQVDVD3HUFHQWDJHRI&RYHUHG3D\UROO $FWXDULDO&RVW0HWKRG

$PRUWL]DWLRQ0HWKRG3HULRG

$VVHW9DOXDWLRQ0HWKRG

,QIODWLRQ

6DODU\,QFUHDVHV

3D\UROO*URZWK

,QYHVWPHQW5DWHRI5HWXUQ

5HWLUHPHQW$JH

0RUWDOLW\

1HWRI3HQVLRQ3ODQ,QYHVWPHQWDQG$GPLQLVWUDWLYH([SHQVHV LQFOXGHV,QIODWLRQ
7KHSUREDELOLWLHVRI5HWLUHPHQWDUHEDVHGRQWKH&DO3(56([SHULHQFH6WXG\IRU WKHSHULRGRI

WR
7KHSUREDELOLWLHVRIPRUWDOLW\DUHEDVHGRQWKH&DO3(56([SHULHQFH6WXG\IRUWKH SHULRGIURP

WR3UHUHWLUHPHQWDQG3RVWUHWLUHPHQWPRUWDOLW\UDWHVLQFOXGH \HDUVRISURMHFWHGPRUWDOLW\LPSURYHPHQWXVLQJ6FDOH%%SXEOLVKHGE\WKH6RFLHW\RI $FWXDULHV

+LVWRULFDO LQIRUPDWLRQ LV UHTXLUHG RQO\ IRU PHDVXUHPHQW IRU ZKLFK *$6% LV DSSOLFDEOH )LVFDO <HDU ZDV WKH ILUVW \HDU RI LPSOHPHQWDWLRQWKHUHIRUHRQO\HLJKW\HDUVDUHVKRZQ
1RWHVWR6FKHGXOHRI3ODQ&RQWULEXWLRQV

7KH DFWXDULDO PHWKRGV DQG DVVXPSWLRQV XVHG WR VHW WKH DFWXDULDOO\ GHWHUPLQHG FRQWULEXWLRQV IRU )LVFDO <HDU ZHUH GHULYHG IURP WKH -XQH
IXQGLQJYDOXDWLRQUHSRUW
(QWU\$JH1RUPDO
)RUGHWDLOVVHH-XQH
)XQGLQJ9DOXDWLRQ5HSRUW
0DUNHW9DOXHRI$VVHWV)RUGHWDLOVVHH-XQH
)XQGLQJ9DOXDWLRQ5HSRUW

9DULHVE\(QWU\$JHDQG6HUYLFH

54 Packet Pg.
357

55 Packet Pg.
358

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
5(48,5('6833/(0(17$5<,1)250$7,21
6&+('8/(2)&+$1*(6,17+(1(723(%/,$%,/,7<
$66(7
$1'5(/$7('5$7,26
$62)-81()257+(/$677(1),6&$/<($56

0HDVXUHPHQW'DWH

7RWDO23(%/LDELOLW\

6HUYLFHFRVW
,QWHUHVW

&KDQJHVRIEHQHILWWHUPV

$FWXDOYVH[SHFWHGH[SHULHQFH

$VVXPSWLRQFKDQJHV

%HQHILWSD\PHQWV

1HWFKDQJHV

7RWDO23(%/LDELOLW\
EHJLQQLQJRI\HDU

7RWDO23(%/LDELOLW\
HQGRI\HDU

D

3ODQ)LGXFLDU\1HW3RVLWLRQ

&RQWULEXWLRQVHPSOR\HU

1HWLQYHVWPHQWLQFRPH
%HQHILWSD\PHQWV

$GPLQLVWUDWLYHH[SHQVHV

1HWFKDQJHV

3ODQ)LGXFLDU\1HW3RVLWLRQEHJLQQLQJ

3ODQ)LGXFLDU\1HW3RVLWLRQHQGLQJ
E

1HW23(%/LDELOLW\
$VVHWV
HQGLQJ
D

E

3ODQILGXFLDU\QHWSRVLWLRQDVDSHUFHQWDJHRIWKHWRWDO23(%OLDELOLW\ &RYHUHGHPSOR\HHSD\UROO

1HW23(%OLDELOLW\
DVVHW
DVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UR 1RWHVWRWKH6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\DQG5HODWHG5DWLRV

&RQWULEXWLRQVDUHQRWEDVHGRQHPSOR\HHFRPSHQVDWLRQ
WKHUHIRUHFRYHUHGHPSOR\HHSD\UROOLVXVHG
%HQHILW&KDQJHV
1HZKLUHVDIWHU
UHFHLYHQR'HSDUWPHQWFRQWULEXWLRQV
&KDQJHVRI$VVXPSWLRQV
'HPRJUDSKLFDVVXPSWLRQVZHUHXSGDWHGWR&DO3(56

([SHULHQFH6WXG\
DVVXPHG0HGLFDO3ODQLQUHWLUHPHQWXSGDWHGWR

3DUWLFLSDWLRQSHUFHQWDWUHWLUHPHQWORZHUHG

.DLVHU0HGLFDUHWUHQGORZHUHG

0RUWDOLW\LPSURYHPHQWVFDOHZDVXSGDWHGWR6FDOH03

&XUUHQW
PHGLFDOSODQDVVXPHGDWUHWLUHPHQW

$&$KLJKSUHPLXPH[FLVHWD[UHPRYHG

+LVWRULFDOLQIRUPDWLRQLVUHTXLUHGRQO\IRUWKHPHDVXUHPHQWSHULRGVIRUZKLFK*$6%LVDSSOLFDEOH)LVFDO<HDUZDVWKHILUVW\HDURILPSOHPHQWDWLRQ )XWXUH\HDUV
LQIRUPDWLRQZLOOEHGLVSOD\HGXSWR\HDUVDVLQIRUPDWLRQEHFRPHVDYDLODEOH 56 Packet Pg.
359

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
5(48,5('6833/(0(17$5<,1)250$7,21
6&+('8/(2)23(%3/$1&2175,%87,216
$62)-81()257+(/$677(1),6&$/<($56

$FWXDULDOO\'HWHUPLQHG&RQWULEXWLRQ
&RQWULEXWLRQLQ5HODWLRQWRWKH$FWXDULDOO\
'HWHUPLQHG&RQWULEXWLRQ

&RQWULEXWLRQ'HILFLHQF\
([FHVV

&RYHUHGHPSOR\HHSD\UROO

&RQWULEXWLRQVDVDSHUFHQWDJHRI
FRYHUHGHPSOR\HHSD\UROO
1RWHVWR6FKHGXOHRI(PSOR\HU&RQWULEXWLRQ

9DOXDWLRQ'DWH

$FWXDULDO&RVW0HWKRG

$PRUWL]DWLRQ0HWKRG

$PRUWL]DWLRQ3HULRG

$VVHW9DOXDWLRQ0HWKRG

'LVFRXQW5DWH

*HQHUDO,QIODWLRQ

0HGLFDO7UHQG

0RUWDOLW\

0RUWDOLW\,PSURYHPHQW
PRUWDOLW\
1RQ0HGLFDUHIRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ 0HGLFDUH
1RQ.DLVHU
IRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ 0HGLFDUH
.DLVHU
IRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ

+LVWRULFDOLQIRUPDWLRQLVUHTXLUHGRQO\IRUWKHPHDVXUHPHQWSHULRGVIRUZKLFK*$6%LVDSSOLFDEOH)LVFDO<HDUZDVWKHILUVW\HDURI LPSOHPHQWDWLRQ)XWXUH\HDUV
LQIRUPDWLRQZLOOEHGLVSOD\HGXSWR\HDUVDVLQIRUPDWLRQEHFRPHVDYDLODEOH

&DO3(56

H[SHULHQFHVWXG\
(QWU\$JH1RUPDOOHYHOSHUFHQWDJHRISD\UROO
/HYHORISD\
\HDUDYHUDJHUHPDLQLQJIL[HGSHULRGIRU
,QYHVWPHQWJDLQVDQGORVVHVVSUHDGRYHU\HDUUROOLQJSHULRG 0HWKRGVDQG$VVXPSWLRQVIRU$FWXDULDOO\'HWHUPLQHG&RQWULEXWLRQ -XQH
57 Packet Pg.
360

&,7<2)6$1%(51$5',12081,&,3$/:$7(5'(3$570(17
5(48,5('6833/(0(17$5<,1)250$7,21
6&+('8/(2)23(%3/$1,19(670(175(78516
$62)-81()257+(/$677(1),6&$/<($56

)LVFDO<HDU(QGLQJ-XQH
1HW0RQH\:HLJKWHG5DWHRI
5HWXUQ

1RWHVWR6FKHGXOH

*$6% 6WDWHPHQW 1R ZKLFK UHTXLUHV WHQ \HDUV RI KLVWRU\ IRU WKLV VFKHGXOH ZDV LPSOHPHQWHG GXULQJ )LVFDO <HDU $GGLWLRQDO \HDUV ZLOOEHDGGHGDVWKH\EHFRPHDYDLODEOHLQWKHIXWXUH
58 Packet Pg.
361

67$7,67,&$/6(&7,21
59 Packet Pg.
362

7+,63$*(,17(17,21$//</()7%/$1.
60 Packet Pg.
363

&/EE/>dZ
E^
dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶƚƌĞŶĚŝŶĨŽƌŵĂƚŽŶƚŽŚĞůƉƚŚĞ
ƌĞĂĚĞƌƵŶĚĞƌƐƚĂŶĚŚŽǁƚŚĞĞƉĂƌƚŵĞŶƚΖƐĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ ĂŶĚǁĞůůͲďĞŝŶŐŚĂǀĞĐŚĂŶŐĞĚŽǀĞƌƚŝŵĞ͘
61 Packet Pg.
364

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂů
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
;
ǆƉĞŶƐĞͿ
dŽƚĂů
ŽŶƚƌŝďƵƚĞĚ
ĂƉŝƚĂů
ŚĂŶŐĞƐŝŶ
EĞƚWŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ϲϭ͕ϴϴϯ͕ϲϭϱ ϱϳ͕ϯϮϳ͕ϱϯϳ ϰ͕ϱϱϲ͕Ϭϳϴ ϭ͕ϴϲϭ͕ϳϱϴ ϰ͕ϴϵϲ͕ϵϮϭ ϭϭ͕ϯϭϰ͕ϳϱϳ ϲͬϯϬͬϮϬϭϰ ϲϮ͕ϮϵϮ͕ϰϮϴ ϱϳ͕ϵϲϱ͕ϯϵϱ ϰ͕ϯϮϳ͕Ϭϯϯ ϭ͕ϯϳϱ͕ϱϯϲ ϳ͕ϱϭϬ͕ϳϳϳ ϭϯ͕Ϯϭϯ͕ϯϰϲ ϲͬϯϬͬϮϬϭϱ ϱϳ͕ϴϬϱ͕ϯϬϰ ϱϱ͕Ϭϳϰ͕ϲϲϭ Ϯ͕ϳϯϬ͕ϲϰϯ ϯ͕ϴϬϭ͕ϴϯϬ ϰ͕ϵϳϳ͕ϵϰϱ ϭϭ͕ϱϭϬ͕ϰϭϴ ϲͬϯϬͬϮϬϭϲ ϱϱ͕ϯϳϲ͕ϲϱϬ ϱϯ͕ϱϮϵ͕ϴϮϰ ϭ͕ϴϰϲ͕ϴϮϲ Ϯ͕Ϭϱϵ͕ϭϭϭ ϰ͕Ϯϳϭ͕ϯϮϱ ϴ͕ϭϳϳ͕ϮϲϮ ϲͬϯϬͬϮϬϭϳ Ύ ϲϰ͕ϰϴϴ͕ϱϴϳ ϲϭ͕ϴϵϱ͕ϴϳϮ Ϯ͕ϱϵϮ͕ϳϭϱ ϴ͕ϰϯϭ͕ϮϬϳ Ϯϭ͕ϵϵϱ͕Ϭϭϲ ϯϯ͕Ϭϭϴ͕ϵϯϴ ϲͬϯϬͬϮϬϭϴ ϳϲ͕ϲϮϬ͕ϲϮϬ ϲϴ͕ϳϯϰ͕ϵϱϴ ϳ͕ϴϴϱ͕ϲϲϮ ;ϭ͕ϴϳϮ͕ϳϭϮͿ ϰ͕ϴϱϰ͕ϳϴϰ ϭϬ͕ϴϲϳ͕ϳϯϰ ϲͬϯϬͬϮϬϭϵ ϳϳ͕Ϭϵϰ͕ϳϮϯ ϲϲ͕ϵϮϭ͕ϭϮϱ ϭϬ͕ϭϳϯ͕ϱϵϴ ;ϳ͕ϱϱϯ͕ϭϳϭͿ ϭϬ͕ϭϮϭ͕ϯϰϰ ϭϮ͕ϳϰϭ͕ϳϳϭ ϲͬϯϬͬϮϬϮϬ ϳϴ͕ϭϴϰ͕ϲϵϴ ϳϬ͕ϳϳϴ͕ϵϴϳ ϳ͕ϰϬϱ͕ϳϭϭ ϳϰϴ͕Ϯϭϯ ϰ͕ϲϬϰ͕ϲϵϵ ϭϮ͕ϳϱϴ͕ϲϮϯ ϲͬϯϬͬϮϬϮϭ ϴϬ͕ϴϯϭ͕ϰϲϳ ϳϳ͕Ϯϰϳ͕ϰϮϴ ϯ͕ϱϴϰ͕Ϭϯϵ ;ϭ͕ϵϴϬ͕ϬϰϯͿ ϲ͕ϲϬϱ͕ϱϱϲ ϴ͕ϮϬϵ͕ϱϱϮ ϲͬϯϬͬϮϬϮϮ ϴϯ͕ϱϭϳ͕ϯϰϭ ϳϮ͕ϭϬϵ͕ϵϯϱ ϭϭ͕ϰϬϳ͕ϰϬϲ ;Ϯ͕ϯϭϱ͕ϮϳϵͿ ϴ͕Ϭϳϭ͕ϵϰϰ ϭϳ͕ϭϲϰ͕Ϭϳϭ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ύ&ŝƐĐĂůzĞĂƌƐϮϬϬϵͲϮϬϭϲĐŽŶƚĂŝŶŽŶůǇƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚĂŶĚtĂƚĞƌhƚŝůŝƚǇ&ƵŶĚƐ͘dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƐ&ƵŶĚ ǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳ͘
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ ŽŵďŝŶĞĚ&ƵŶĚƐ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
62 Packet Pg.
365

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂů
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
;
ǆƉĞŶƐĞͿ
dŽƚĂů
ŽŶƚƌŝďƵƚĞĚ
ĂƉŝƚĂů
ŚĂŶŐĞƐŝŶ
EĞƚWŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ϯϳ͕ϴϲϴ͕ϴϰϲ ϯϳ͕ϰϯϬ͕ϮϮϰ ϰϯϴ͕ϲϮϮ Ϯ͕ϰϵϮ͕ϰϰϴ ϯ͕ϰϮϭ͕ϱϮϭ ϲ͕ϯϱϮ͕ϱϵϭ ϲͬϯϬͬϮϬϭϰ ϯϲ͕ϲϳϭ͕ϵϬϯ ϯϲ͕Ϭϰϭ͕ϲϭϲ ϲϯϬ͕Ϯϴϳ Ϯ͕ϱϬϰ͕ϳϬϱ ϲ͕ϱϮϭ͕ϲϬϭ ϵ͕ϲϱϲ͕ϱϵϯ ϲͬϯϬͬϮϬϭϱ ϯϯ͕ϭϮϭ͕ϭϮϴ ϯϱ͕ϱϬϰ͕ϱϴϮ ;Ϯ͕ϯϴϯ͕ϰϱϰͿ Ϯ͕ϳϬϮ͕ϵϱϯ ϯ͕ϵϬϱ͕ϭϬϰ ϰ͕ϮϮϰ͕ϲϬϯ ϲͬϯϬͬϮϬϭϲ ϯϬ͕ϬϬϭ͕ϴϳϭ ϯϰ͕ϴϯϰ͕ϯϲϮ ;ϰ͕ϴϯϮ͕ϰϵϭͿ Ϯ͕Ϯϴϯ͕ϮϯϬ Ϯ͕ϴϭϮ͕ϭϵϮ ϮϲϮ͕ϵϯϭ ϲͬϯϬͬϮϬϭϳ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϳ͕Ϭϳϰ͕ϲϳϬ ;ϯ͕ϳϭϱ͕ϳϲϯͿ ;ϱϰϲ͕ϮϴϬͿ Ϯ͕ϭϵϰ͕Ϭϵϯ ;Ϯ͕Ϭϲϳ͕ϵϱϬͿ ϲͬϯϬͬϮϬϭϴ ϯϴ͕ϮϴϬ͕Ϭϭϲ ϯϰ͕ϰϰϲ͕ϭϬϱ ϯ͕ϴϯϯ͕ϵϭϭ ϭ͕ϭϵϴ͕ϭϲϭ ϯ͕ϯϮϯ͕Ϭϯϭ ϴ͕ϯϱϱ͕ϭϬϯ ϲͬϯϬͬϮϬϭϵ ϯϵ͕Ϭϵϵ͕ϵϲϬ ϯϯ͕ϵϵϱ͕Ϭϯϳ ϱ͕ϭϬϰ͕ϵϮϯ ϭ͕ϴϮϵ͕ϰϰϴ Ϯ͕ϳϯϳ͕Ϭϯϭ ϵ͕ϲϳϭ͕ϰϬϮ ϲͬϯϬͬϮϬϮϬ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϯϴ͕ϲϮϲ͕ϭϱϭ ϭ͕ϲϰϭ͕ϮϮϱ ϭ͕ϲϱϱ͕ϲϮϴ Ϯ͕ϬϬϮ͕ϲϯϳ ϱ͕Ϯϵϵ͕ϰϵϬ ϲͬϯϬͬϮϬϮϭ ϰϮ͕ϳϱϴ͕ϭϵϮ ϰϮ͕ϰϴϬ͕ϴϱϱ Ϯϳϳ͕ϯϯϳ ϳϵϭ͕ϱϮϳ ϯ͕ϴϲϭ͕ϬϭϬ ϰ͕ϵϮϵ͕ϴϳϰ ϲͬϯϬͬϮϬϮϮ ϰϯ͕ϭϱϬ͕ϭϮϰ ϯϳ͕ϲϮϲ͕Ϭϰϲ ϱ͕ϱϮϰ͕Ϭϳϴ ϰϴϯ͕ϵϲϭ ϰ͕ϳϭϴ͕ϴϲϰ ϭϬ͕ϳϮϲ͕ϵϬϯ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
;ϯ͕ϬϬϬͿ
;ϭ͕ϬϬϬͿ
ϭ͕ϬϬϬ
ϯ͕ϬϬϬ
ϱ͕ϬϬϬ
ϳ͕ϬϬϬ
ϵ͕ϬϬϬ
ϭϭ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲtĂƚĞƌ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
63 Packet Pg.
366

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂů
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
;
ǆƉĞŶƐĞͿ
dŽƚĂů
ŽŶƚƌŝďƵƚĞĚ
ĂƉŝƚĂů
ŚĂŶŐĞƐŝŶ
EĞƚWŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ Ϯϲ͕ϰϭϰ͕ϲϱϯ ϮϮ͕Ϯϵϳ͕ϭϵϳ ϰ͕ϭϭϳ͕ϰϱϲ ;ϲϯϬ͕ϲϵϬͿ ϭ͕ϰϳϱ͕ϰϬϬ ϰ͕ϵϲϮ͕ϭϲϲ ϲͬϯϬͬϮϬϭϰ Ϯϱ͕ϲϳϬ͕ϳϳϰ Ϯϭ͕ϵϳϰ͕ϬϮϴ ϯ͕ϲϵϲ͕ϳϰϲ ;ϭ͕ϭϮϵ͕ϭϲϵͿ ϵϴϵ͕ϭϳϲ ϯ͕ϱϱϲ͕ϳϱϯ ϲͬϯϬͬϮϬϭϱ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϭϵ͕ϲϮϬ͕ϯϮϴ ϱ͕ϭϭϰ͕Ϭϵϳ ϭ͕Ϭϵϴ͕ϴϳϳ ϭ͕ϬϳϮ͕ϴϰϭ ϳ͕Ϯϴϱ͕ϴϭϱ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϴ͕ϳϯϭ͕ϰϮϯ ϲ͕ϲϳϵ͕ϯϭϳ ;ϮϮϰ͕ϭϭϵͿ ϭ͕ϰϱϵ͕ϭϯϯ ϳ͕ϵϭϰ͕ϯϯϭ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ Ϯϰ͕ϭϯϵ͕ϴϳϴ ϰ͕ϰϳϮ͕ϭϰϭ ;ϯ͕ϲϮϰ͕ϲϱϴͿ ϭ͕ϯϱϱ͕ϰϵϰ Ϯ͕ϮϬϮ͕ϵϳϳ ϲͬϯϬͬϮϬϭϴ ϯϬ͕ϳϯϯ͕ϰϱϯ ϮϮ͕ϲϵϳ͕ϰϵϭ ϴ͕Ϭϯϱ͕ϵϲϮ ;ϯ͕Ϯϳϱ͕ϳϬϰͿ ϭ͕ϮϴϬ͕ϮϴϬ ϲ͕ϬϰϬ͕ϱϯϴ ϲͬϯϬͬϮϬϭϵ ϯϬ͕ϱϰϲ͕ϭϴϭ Ϯϰ͕ϴϲϲ͕ϲϴϭ ϱ͕ϲϳϵ͕ϱϬϬ ;ϵ͕ϵϲϳ͕ϯϬϵͿ ϳ͕ϬϵϮ͕ϳϴϱ Ϯ͕ϴϬϰ͕ϵϳϲ ϲͬϯϬͬϮϬϮϬ ϯϬ͕ϯϵϳ͕ϬϵϮ Ϯϰ͕ϲϰϴ͕ϰϭϭ ϱ͕ϳϰϴ͕ϲϴϭ ;ϭ͕ϱϯϳ͕ϭϳϵͿ Ϯ͕Ϯϱϳ͕ϯϯϬ ϲ͕ϰϲϴ͕ϴϯϮ ϲͬϯϬͬϮϬϮϭ ϯϬ͕ϯϲϭ͕ϭϭϲ Ϯϲ͕ϵϴϲ͕ϯϴϱ ϯ͕ϯϳϰ͕ϳϯϭ ;Ϯ͕ϳϴϮ͕ϰϴϭͿ Ϯ͕ϱϬϮ͕Ϯϲϯ ϯ͕Ϭϵϰ͕ϱϭϯ ϲͬϯϬͬϮϬϮϮ ϯϰ͕ϭϳϭ͕ϭϲϬ Ϯϲ͕ϳϵϰ͕ϯϵϬ ϳ͕ϯϳϲ͕ϳϳϬ ;Ϯ͕Ϯϴϴ͕ϬϬϲͿ Ϯ͕Ϯϵϰ͕ϱϰϭ ϳ͕ϯϴϯ͕ϯϬϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
;Ϯ͕ϬϬϬͿ
Ͳ
Ϯ͕ϬϬϬ
ϰ͕ϬϬϬ
ϲ͕ϬϬϬ
ϴ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ^ĞǁĞƌ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
64 Packet Pg.
367

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂů
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
;
ǆƉĞŶƐĞͿ
dŽƚĂů
ŽŶƚƌŝďƵƚĞĚ
ĂƉŝƚĂů
ŚĂŶŐĞƐŝŶ
EĞƚWŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϳ
Ύ Ϯ͕ϴϵϭ͕ϮϬϯ ϭ͕Ϭϱϰ͕ϴϲϲ ϭ͕ϴϯϲ͕ϯϯϳ ϭϮ͕ϲϬϮ͕ϭϰϱ ϭϴ͕ϰϰϱ͕ϰϮϵ ϯϮ͕ϴϴϯ͕ϵϭϭ ϲͬϯϬͬϮϬϭϴ ϳ͕ϲϴϮ͕ϵϰϲ ϭϭ͕ϲϲϳ͕ϭϱϳ ;ϯ͕ϵϴϰ͕ϮϭϭͿ ϮϬϰ͕ϴϯϭ Ϯϱϭ͕ϰϳϯ ;ϯ͕ϱϮϳ͕ϵϬϳͿ ϲͬϯϬͬϮϬϭϵ ϳ͕ϱϲϮ͕Ϭϵϳ ϴ͕ϭϳϮ͕ϵϮϮ ;ϲϭϬ͕ϴϮϱͿ ϱϴϰ͕ϲϵϬ Ϯϵϭ͕ϱϮϴ Ϯϲϱ͕ϯϵϯ ϲͬϯϬͬϮϬϮϬ ϳ͕ϲϲϲ͕ϯϬϵ ϳ͕ϲϱϬ͕ϱϬϰ ϭϱ͕ϴϬϱ ϲϮϵ͕ϳϲϰ ϯϰϰ͕ϳϯϮ ϵϵϬ͕ϯϬϭ ϲͬϯϬͬϮϬϮϭ ϳ͕ϳϵϰ͕ϰϭϴ ϳ͕ϴϲϮ͕ϰϰϳ ;ϲϴ͕ϬϮϵͿ ϭϬ͕ϵϭϭ ϮϰϮ͕Ϯϴϯ ϭϴϱ͕ϭϲϱ ϲͬϯϬͬϮϬϮϮ ϲ͕ϯϵϰ͕ϲϮϯ ϳ͕ϴϴϴ͕Ϭϲϱ ;ϭ͕ϰϵϯ͕ϰϰϮͿ ;ϱϭϭ͕ϮϯϰͿ ϭ͕Ϭϱϴ͕ϱϯϵ ;ϵϰϲ͕ϭϯϳͿ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽƉƌŝŽƌǇĞĂƌĚĂƚĂŝƐ ƵŶĂǀĂŝůĂďůĞ͘
;ϱ͕ϬϬϬͿ
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
ŚĂŶŐĞƐŝŶEĞƚWŽƐŝƚŝŽŶ
65 Packet Pg.
368

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
EĞƚWŽƐŝƚŝŽŶďǇŽŵƉŽŶĞŶƚ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ
ĂƉŝƚĂůƐƐĞƚƐ
ZĞƐƚƌŝĐƚĞĚEĞƚ
WŽƐŝƚŝŽŶ
hŶƌĞƐƚƌŝĐƚĞĚ
EĞƚWŽƐŝƚŝŽŶ
dŽƚĂůEĞƚ
WŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ϮϬϬ͕ϬϳϮ͕ϵϰϮ ϳ͕ϳϵϵ͕ϳϳϯ ϲϵ͕ϯϭϱ͕ϭϳϭ Ϯϳϳ͕ϭϴϳ͕ϴϴϲ ϲͬϯϬͬϮϬϭϰ ϮϬϲ͕ϲϲϯ͕ϱϲϳ ϳ͕ϱϭϱ͕ϲϱϴ ϲϲ͕ϱϮϰ͕ϱϴϵ ϮϴϬ͕ϳϬϯ͕ϴϭϰ ϲͬϯϬͬϮϬϭϱ ϮϮϯ͕Ϭϱϯ͕Ϯϲϵ ϳ͕ϲϯϯ͕Ϭϰϵ ϭϮ͕ϱϭϬ͕ϵϲϵ Ϯϰϯ͕ϭϵϳ͕Ϯϴϳ Ͳ
ϲͬϯϬͬϮϬϭϲ Ϯϯϱ͕ϲϳϬ͕Ϭϳϯ ϳ͕ϴϭϰ͕Ϭϴϲ ϳ͕ϴϵϬ͕ϯϵϬ Ϯϱϭ͕ϯϳϰ͕ϱϰϵ ϲͬϯϬͬϮϬϭϳ Ύ ϮϱϬ͕ϯϵϵ͕ϰϴϭ ϳ͕ϵϰϰ͕ϳϱϴ Ϯϲ͕Ϭϰϵ͕Ϯϰϴ Ϯϴϰ͕ϯϵϯ͕ϰϴϳ ϲͬϯϬͬϮϬϭϴ Ϯϰϴ͕ϲϱϯ͕ϵϲϯ ϴ͕ϯϲϯ͕Ϭϯϳ Ϯϯ͕ϵϭϮ͕ϯϭϭ ϮϴϬ͕ϵϮϵ͕ϯϭϭ ϲͬϯϬͬϮϬϭϵ Ϯϱϵ͕ϲϳϭ͕ϰϵϴ Ͳ ϯϯ͕ϵϵϵ͕ϴϵϰ Ϯϵϯ͕ϲϳϭ͕ϯϵϮ ϲͬϯϬͬϮϬϮϬ Ϯϱϱ͕ϮϳϬ͕ϳϮϬ Ͳ ϱϭ͕ϭϱϴ͕ϵϴϱ ϯϬϲ͕ϰϮϵ͕ϳϬϱ ϲͬϯϬͬϮϬϮϭ Ϯϱϯ͕Ϯϴϴ͕ϳϯϮ Ͳ ϲϭ͕ϯϱϬ͕ϱϮϱ ϯϭϰ͕ϲϯϵ͕Ϯϱϳ ϲͬϯϬͬϮϬϮϮ ϮϱϬ͕Ϯϭϲ͕ϳϱϮ ϴϭ͕ϴϬϰ͕ϭϲϴ ϯϯϮ͕ϬϮϬ͕ϵϮϬ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ύ&ŝƐĐĂůzĞĂƌƐϮϬϬϵͲϮϬϭϲĐŽŶƚĂŝŶŽŶůǇ^ĞǁĞƌdƌĞĂƚŵĞŶƚĂŶĚtĂƚĞƌhƚŝůŝƚǇ&ƵŶĚƐ͘dŚĞ^ĞǁĞƌ ŽůůĞĐƚŝŽŶƐ&ƵŶĚǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳ͘ Ͳ
ϱϬ͕ϬϬϬ
ϭϬϬ͕ϬϬϬ
ϭϱϬ͕ϬϬϬ
ϮϬϬ͕ϬϬϬ
ϮϱϬ͕ϬϬϬ
ϯϬϬ͕ϬϬϬ
ϯϱϬ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
E
dWK^/d/KEzKDWKE
Ed
KD/E
;/EϭϬϬϬ^Ϳ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 66 Packet Pg.
369

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
EĞƚWŽƐŝƚŝŽŶďǇŽŵƉŽŶĞŶƚͲtĂƚĞƌ&ƵŶĚ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ
ĂƉŝƚĂůƐƐĞƚƐ
ZĞƐƚƌŝĐƚĞĚEĞƚ
WŽƐŝƚŝŽŶ
hŶƌĞƐƚƌŝĐƚĞĚEĞƚ
WŽƐŝƚŝŽŶ
dŽƚĂůEĞƚ
WŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ϭϱϲ͕ϳϱϴ͕ϭϮϳ ŶͬĂ ϭϮ͕ϭϯϯ͕ϵϬϰ ϭϲϴ͕ϴϵϮ͕Ϭϯϭ ϲͬϯϬͬϮϬϭϰ ϭϲϯ͕ϳϵϳ͕Ϯϴϯ ŶͬĂ ϭϭ͕ϳϮϴ͕Ϭϳϭ ϭϳϱ͕ϱϮϱ͕ϯϱϰ ϲͬϯϬͬϮϬϭϱ ϭϲϲ͕ϵϲϯ͕Ϯϯϴ ŶͬĂ ;ϭϱ͕ϭϱϮ͕ϵϯϳͿ ϭϱϭ͕ϴϭϬ͕ϯϬϭ ϲͬϯϬͬϮϬϭϲ ϭϲϵ͕ϳϯϬ͕ϵϵϴ ŶͬĂ ;ϭϳ͕ϲϱϳ͕ϳϲϲͿ ϭϱϮ͕Ϭϳϯ͕ϮϯϮ ϲͬϯϬͬϮϬϭϳ ϭϲϵ͕ϱϲϵ͕ϳϰϲ ŶͬĂ ;ϭϵ͕ϱϲϰ͕ϰϲϰͿ ϭϱϬ͕ϬϬϱ͕ϮϴϮ ϲͬϯϬͬϮϬϭϴ ϭϳϭ͕ϳϵϰ͕Ϭϯϭ ŶͬĂ ;ϮϬ͕ϲϵϵ͕ϬϲϲͿ ϭϱϭ͕Ϭϵϰ͕ϵϲϱ ϲͬϯϬͬϮϬϭϵ ϭϳϳ͕ϭϱϴ͕ϱϯϱ ŶͬĂ ;ϭϲ͕ϯϵϭ͕ϴϱϴͿ ϭϲϬ͕ϳϲϲ͕ϲϳϳ ϲͬϯϬͬϮϬϮϬ ϭϲϴ͕ϵϵϮ͕ϭϮϭ ŶͬĂ ;Ϯ͕ϵϮϲ͕ϮϲϰͿ ϭϲϲ͕Ϭϲϱ͕ϴϱϳ ϲͬϯϬͬϮϬϮϭ ϭϲϴ͕ϱϱϯ͕ϵϭϳ ŶͬĂ Ϯ͕ϰϰϭ͕ϴϭϰ ϭϳϬ͕ϵϵϱ͕ϳϯϭ ϲͬϯϬͬϮϬϮϮ ϭϲϴ͕Ϭϲϱ͕ϭϵϲ ŶͬĂ ϭϯ͕ϳϬϳ͕ϰϯϵ ϭϴϭ͕ϳϳϮ͕ϲϯϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
;ϱϬ͕ϬϬϬͿ
Ͳ
ϱϬ͕ϬϬϬ
ϭϬϬ͕ϬϬϬ
ϭϱϬ͕ϬϬϬ
ϮϬϬ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
E
dWK^/d/KEzKDWKE
Ed͗
td
Z&hE;/EϭϬϬϬ^Ϳ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 67 Packet Pg.
370

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
EĞƚWŽƐŝƚŝŽŶďǇŽŵƉŽŶĞŶƚͲ^ĞǁĞƌ&ƵŶĚ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ
ĂƉŝƚĂůƐƐĞƚƐ
ZĞƐƚƌŝĐƚĞĚEĞƚ
WŽƐŝƚŝŽŶ
hŶƌĞƐƚƌŝĐƚĞĚ
EĞƚWŽƐŝƚŝŽŶ
dŽƚĂůEĞƚ
WŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ϰϯ͕ϯϭϰ͕ϴϭϱ ϳ͕ϳϵϵ͕ϳϯϯ ϱϳ͕ϭϴϭ͕Ϯϲϳ ϭϬϴ͕Ϯϵϱ͕ϴϭϱ ϲͬϯϬͬϮϬϭϰ ϰϮ͕ϴϲϲ͕Ϯϴϰ ϳ͕ϱϭϱ͕ϲϱϴ ϱϰ͕ϳϵϲ͕ϱϭϴ ϭϬϱ͕ϭϳϴ͕ϰϲϬ ϲͬϯϬͬϮϬϭϱ ϱϲ͕ϬϵϬ͕Ϭϯϭ ϳ͕ϲϯϯ͕Ϭϰϵ Ϯϳ͕ϲϲϯ͕ϵϬϲ ϵϭ͕ϯϴϲ͕ϵϴϲ ϲͬϯϬͬϮϬϭϲ ϲϱ͕ϵϯϵ͕Ϭϳϱ ϳ͕ϴϭϰ͕Ϭϴϲ Ϯϱ͕ϱϰϴ͕ϭϱϲ ϵϵ͕ϯϬϭ͕ϯϭϳ ϲͬϯϬͬϮϬϭϳ ϲϮ͕ϲϯϯ͕ϳϴϯ ϳ͕ϵϰϰ͕ϳϱϴ ϯϬ͕ϵϮϱ͕ϳϱϯ ϭϬϭ͕ϱϬϰ͕Ϯϵϰ ϲͬϯϬͬϮϬϭϴ ϱϵ͕Ϭϭϭ͕ϭϬϵ ϴ͕ϯϲϯ͕Ϭϯϳ ϯϯ͕Ϭϰϭ͕ϭϴϭ ϭϬϬ͕ϰϭϱ͕ϯϮϳ ϲͬϯϬͬϮϬϭϵ ϲϯ͕Ϯϰϯ͕Ϭϯϯ ŶͬĂ ϰϬ͕ϬϰϬ͕Ϯϴϱ ϭϬϯ͕Ϯϴϯ͕ϯϭϴ ϲͬϯϬͬϮϬϮϬ ϲϲ͕ϵϬϲ͕ϴϳϰ ŶͬĂ ϰϮ͕ϴϰϱ͕Ϯϳϲ ϭϬϵ͕ϳϱϮ͕ϭϱϬ ϲͬϯϬͬϮϬϮϭ ϲϰ͕ϲϱϬ͕ϱϰϬ ŶͬĂ ϰϴ͕ϭϵϲ͕ϭϮϯ ϭϭϮ͕ϴϰϲ͕ϲϲϯ ϲͬϯϬͬϮϬϮϮ ϲϬ͕ϴϱϯ͕ϰϳϮ ŶͬĂ ϱϵ͕Ϯϱϭ͕ϯϮϬ ϭϮϬ͕ϭϬϰ͕ϳϵϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ͳ
ϮϬ͕ϬϬϬ
ϰϬ͕ϬϬϬ
ϲϬ͕ϬϬϬ
ϴϬ͕ϬϬϬ
ϭϬϬ͕ϬϬϬ
ϭϮϬ͕ϬϬϬ
ϭϰϬ͕ϬϬϬ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
d,Kh^E^
E
dWK^/d/KEzKDWKE
Ed͗
^
t
Z&hE;/EϭϬϬϬ^Ϳ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 68 Packet Pg.
371

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
EĞƚWŽƐŝƚŝŽŶďǇŽŵƉŽŶĞŶƚͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶ
ĂƉŝƚĂůƐƐĞƚƐ
ZĞƐƚƌŝĐƚĞĚEĞƚ
WŽƐŝƚŝŽŶ
hŶƌĞƐƚƌŝĐƚĞĚ
EĞƚWŽƐŝƚŝŽŶ
dŽƚĂůEĞƚ
WŽƐŝƚŝŽŶ
ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϳ Ύ ϭϴ͕ϭϵϱ͕ϵϱϮ ŶͬĂ ϭϰ͕ϲϴϳ͕ϵϱϵ ϯϮ͕ϴϴϯ͕ϵϭϭ ϲͬϯϬͬϮϬϭϴ ϭϳ͕ϴϰϴ͕ϴϮϯ ŶͬĂ ϭϭ͕ϱϬϳ͕ϭϴϭ Ϯϵ͕ϯϱϲ͕ϬϬϰ ϲͬϯϬͬϮϬϭϵ ϭϵ͕Ϯϲϵ͕ϵϯϬ ŶͬĂ ϭϬ͕ϯϱϭ͕ϰϲϳ Ϯϵ͕ϲϮϭ͕ϯϵϳ ϲͬϯϬͬϮϬϮϬ ϭϵ͕ϯϳϭ͕ϳϮϱ ŶͬĂ ϭϭ͕Ϯϯϵ͕ϵϳϯ ϯϬ͕ϲϭϭ͕ϲϵϴ ϲͬϯϬͬϮϬϮϭ ϮϬ͕Ϭϴϰ͕Ϯϳϱ ŶͬĂ ϭϬ͕ϳϭϮ͕ϱϴϴ ϯϬ͕ϳϵϲ͕ϴϲϯ ϲͬϯϬͬϮϬϮϮ Ϯϭ͕Ϯϵϴ͕Ϭϴϰ ŶͬĂ ϴ͕ϴϵϱ͕ϰϭϬ ϯϬ͕ϭϵϯ͕ϰϵϰ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽƉƌŝŽƌ ǇĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϮϬϭϯ
ϮϬϭϰ
ϮϬϭϱ
ϮϬϭϲ
ϮϬϭϳ
ϮϬϭϴ
ϮϬϭϵ
ϮϬϮϬ
ϮϬϮϭ
ϮϬϮϮ
d,Kh^E^
E
dWK^/d/KEzKDWKE
Ed͗^
t
Z
K>>
d/KE&hE;/EϭϬϬϬ^Ϳ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ZĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ 69 Packet Pg.
372

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌ&ƵŶĚZĞǀĞŶƵĞďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ tĂƚĞƌ^ĂůĞƐ ^ĞƌǀŝĐĞ
ŚĂƌŐĞƐͬ&ĞĞƐ
KƚŚĞƌ
^ĞƌǀŝĐĞƐ
dŽƚĂůKƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
/ŶƚĞƌĞƐƚ
/ŶĐŽŵĞ
ZĞŶƚĂů
/ŶĐŽŵĞ KƚŚĞƌ/ŶĐŽŵĞ 'ĂŝŶŽŶĂƐƐĞƚ
ĚŝƐƉŽƐŝƚŝŽŶ
EŽŶĐĂƉŝƚĂů
ŐƌĂŶƚĨƵŶĚƐ
dŽƚĂůEŽŶ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
ϲͬϯϬͬϮϬϭϯ ϯϰ͕ϮϱϮ͕ϯϱϳ ϯ͕ϰϳϲ͕Ϭϲϭ ϭϰϬ͕ϰϮϵ ϯϳ͕ϴϲϴ͕ϴϰϲ Ͳ ϭϮϮ͕ϴϮϲ Ϯϭϭ͕ϬϯϮ Ͳ ϯ͕ϭϭϬ͕ϮϬϭ ϯ͕ϰϰϰ͕Ϭϱϵ ϲͬϯϬͬϮϬϭϰ ϯϰ͕ϳϳϳ͕ϭϭϮ ϭ͕ϳϱϰ͕ϲϭϰ ϭϰϬ͕ϭϳϲ ϯϲ͕ϲϳϭ͕ϵϬϯ ϵϯ͕ϰϮϴ ϭϲϬ͕Ϭϴϵ ϰϳϴ͕ϱϭϮ ϰ͕ϰϰϲ Ϯ͕ϬϯϬ͕Ϭϲϲ Ϯ͕ϳϲϲ͕ϱϰϭ ϲͬϯϬͬϮϬϭϱ ϯϭ͕Ϯϭϳ͕ϱϯϰ ϭ͕ϳϴϵ͕ϲϱϰ ϭϭϯ͕ϵϰϬ ϯϯ͕ϭϮϭ͕ϭϮϴ ϱϰ͕ϳϴϲ ϭϴϭ͕ϴϬϵ ϱϰϱ͕ϴϰϬ Ͳ Ϯ͕Ϭϴϵ͕ϲϯϳ Ϯ͕ϴϳϮ͕ϬϳϮ ϲͬϯϬͬϮϬϭϲ Ϯϴ͕Ϯϵϯ͕ϳϵϬ ϭ͕ϲϬϰ͕ϰϳϮ ϭϬϯ͕ϲϬϵ ϯϬ͕ϬϬϭ͕ϴϳϭ ϲϯ͕ϱϲϲ ϭϯϰ͕ϴϰϱ ϰϵϱ͕Ϯϵϴ Ͳ ϭ͕ϲϵϲ͕Ϯϭϵ Ϯ͕ϯϴϵ͕ϵϮϴ ϲͬϯϬͬϮϬϭϳ ϯϭ͕ϴϵϯ͕ϮϬϵ ϭ͕ϯϰϳ͕ϵϵϯ ϭϭϳ͕ϳϬϱ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϭ͕ϱϬϰ ϮϬϯ͕ϭϴϲ ϯϬϭ͕ϴϯϯ Ͳ Ϯ͕Ϭϰϳ͕ϵϰϲ Ϯ͕ϱϴϰ͕ϰϲϵ ϲͬϯϬͬϮϬϭϴ ϯϲ͕ϴϮϱ͕ϲϯϰ ϭ͕ϯϱϬ͕ϲϮϯ ϭϬϯ͕ϳϱϯ ϯϴ͕ϮϴϬ͕ϬϭϬ ϵϳϱ͕ϭϰϰ ϮϬϴ͕ϵϮϱ ϮϬϲ͕ϲϰϱ ϰϲ͕ϯϱϲ ϭ͕ϳϳϲ͕ϴϴϯ ϯ͕Ϯϭϯ͕ϵϱϯ ϲͬϯϬͬϮϬϭϵ ϯϳ͕ϳϳϱ͕Ϯϴϱ ϭ͕Ϯϯϳ͕ϵϬϯ ϴϲ͕ϳϳϮ ϯϵ͕Ϭϵϵ͕ϵϲϬ ϵϬϯ͕ϯϵϵ ϮϬϲ͕ϯϲϬ ϴϲϳ͕ϳϲϯ ϭϮ͕ϲϲϵ ϭ͕ϴϵϭ͕ϳϮϵ ϯ͕ϴϴϭ͕ϵϮϬ ϲͬϯϬͬϮϬϮϬ ϯϵ͕ϭϲϮ͕ϰϴϱ ϭ͕ϬϮϬ͕ϴϭϴ ϴϰ͕Ϭϳϯ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϳϰϳ͕ϰϳϳ Ϯϰϱ͕ϳϴϰ ϲϱϭ͕Ϭϯϭ Ͳ ϭ͕ϵϵϭ͕ϳϰϳ ϯ͕ϲϯϲ͕Ϭϯϵ ϲͬϯϬͬϮϬϮϭ ϰϭ͕ϳϲϬ͕ϳϰϱ ϵϭϬ͕ϲϮϴ ϴϲ͕ϴϭϵ ϰϮ͕ϳϱϴ͕ϭϵϮ Ϯϵ͕ϱϰϭ Ϯϴϲ͕ϱϱϯ ϯϬϲ͕ϳϴϱ ϴϯ͕ϲϴϮ Ϯ͕Ϭϭϭ͕Ϭϵϵ Ϯ͕ϳϭϳ͕ϲϲϬ ϲͬϯϬͬϮϬϮϮ ϰϮ͕ϭϳϱ͕ϲϮϯ ϵϬϱ͕ϲϳϰ ϲϴ͕ϴϮϴ ϰϯ͕ϭϱϬ͕ϭϮϰ Ͳ ϯϰϳ͕ϴϰϵ ϱϯϬ͕ϯϮϲ Ϯϴ͕ϴϰϲ ϭ͕ϵϭϬ͕ϰϯϱ Ϯ͕ϴϭϳ͕ϰϱϲ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϰϬ͕ϬϬϬ
ϰϱ͕ϬϬϬ
ϱϬ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞͲtĂƚĞƌ&ƵŶĚ
KƚŚĞƌ^ĞƌǀŝĐĞƐ
^ĞƌǀŝĐĞŚĂƌŐĞƐͬ&ĞĞƐ
tĂƚĞƌ^ĂůĞƐ
Ͳ
ϱϬϬ
ϭ͕ϬϬϬ
ϭ͕ϱϬϬ
Ϯ͕ϬϬϬ
Ϯ͕ϱϬϬ
ϯ͕ϬϬϬ
ϯ͕ϱϬϬ
ϰ͕ϬϬϬ
ϰ͕ϱϬϬdŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞ͗tĂƚĞƌ&ƵŶĚ
EŽŶĐĂƉŝƚĂůŐƌĂŶƚĨƵŶĚƐ
'ĂŝŶŽŶĂƐƐĞƚĚŝƐƉŽƐŝƚŝŽŶ
KƚŚĞƌ/ŶĐŽŵĞ
ZĞŶƚĂů/ŶĐŽŵĞ
/ŶƚĞƌĞƐƚ/ŶĐŽŵĞ
70 Packet Pg.
373

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌ&ƵŶĚZĞǀĞŶƵĞďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
^ĞǁĞƌdƌĞĂƚŵĞŶƚ
ZĞǀĞŶƵĞ /ŶĚƵƐƚƌŝĂůtĂƐƚĞ
KƚŚĞƌ
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂůKƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
/ŶƚĞƌĞƐƚ
/ŶĐŽŵĞ
ZĞŶƚĂů
/ŶĐŽŵĞ KƚŚĞƌ/ŶĐŽŵĞ
'ĂŝŶŽŶƐƐĞƚ
ŝƐƉŽƐŝƚŝŽŶ
ͬ:ŽŝŶƚsĞŶƚƵƌĞ
dŽƚĂůEŽŶ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
ϲͬϯϬͬϮϬϭϯ Ϯϱ͕Ϯϲϭ͕ϳϵϮ Ϯϵϲ͕ϭϱϯ ϴϱϲ͕ϳϬϴ Ϯϲ͕ϰϭϰ͕ϲϱϰ ϯϰϬ͕ϲϴϵ ϮϮ͕ϱϳϰ Ͳ Ͳ ϯϲϯ͕Ϯϲϯ ϲͬϯϬͬϮϬϭϰ Ϯϱ͕ϯϱϬ͕ϵϴϴ ϯϭϵ͕ϳϴϲ Ͳ Ϯϱ͕ϲϳϬ͕ϳϳϰ ϰϰϯ͕ϴϯϲ ϮϬ͕ϲϲϵ ϮϬϮ͕Ϭϳϴ Ͳ ϲϲϲ͕ϱϴϯ ϲͬϯϬͬϮϬϭϱ Ϯϰ͕ϯϵϵ͕ϰϭϱ ϯϯϱ͕ϬϭϬ Ͳ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϰϴϭ͕Ϯϭϭ ϳϬϬ ϰϵϴ͕Ϯϰϳ ϯϰϱ͕ϴϴϰ ϭ͕ϯϮϲ͕ϬϰϮ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϬϯϬ͕ϱϲϵ ϯϴϬ͕ϭϳϭ Ͳ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϲϱϴ͕ϰϱϲ ϰϭ͕ϰϵϴ ϯϱϵ͕ϴϬϬ Ͳ ϭ͕Ϭϱϵ͕ϳϱϰ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϬϮϮ͕Ϯϱϵ ϱϴϵ͕ϳϲϬ Ͳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ Ϯϯ͕ϯϵϭ ϭϱ͕ϵϬϴ Ͳ Ͳ ϯϵ͕Ϯϵϵ ϲͬϯϬͬϮϬϭϴ ϯϬ͕Ϭϯϵ͕ϭϭϬ ϲϵϰ͕ϯϰϮ Ͳ ϯϬ͕ϳϯϯ͕ϰϱϮ Ͳ ϭϮ͕ϰϴϭ Ͳ ϲ͕Ϭϲϯ ϭϴ͕ϱϰϰ ϲͬϯϬͬϮϬϭϵ Ϯϵ͕ϴϲϭ͕ϭϵϮ ϲϴϰ͕ϵϴϵ Ͳ ϯϬ͕ϱϰϲ͕ϭϴϭ ϭ͕ϯϲϭ͕ϵϯϲ Ͳ Ͳ ϵ͕ϰϭϳ ϭ͕ϯϳϭ͕ϯϱϯ ϲͬϯϬͬϮϬϮϬ Ϯϵ͕ϳϭϮ͕ϳϯϰ ϲϴϰ͕ϯϱϴ Ͳ ϯϬ͕ϯϵϳ͕ϬϵϮ ϭ͕ϯϮϮ͕ϯϲϳ Ͳ Ͳ Ͳ ϭ͕ϯϮϮ͕ϯϲϳ ϲͬϯϬͬϮϬϮϭ Ϯϵ͕ϱϴϳ͕ϱϵϳ ϳϳϯ͕ϱϭϵ Ͳ ϯϬ͕ϯϲϭ͕ϭϭϲ ϭϵ͕ϰϳϮ Ͳ Ͳ Ͳ ϭϵ͕ϰϳϮ ϲͬϯϬͬϮϬϮϮ ϯϯ͕ϯϰϳ͕ϴϴϮ ϴϮϯ͕Ϯϳϴ Ͳ ϯϰ͕ϭϳϭ͕ϭϲϬ Ͳ Ͳ Ͳ Ͳ Ͳ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϰϬ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞͲ^ĞǁĞƌ&ƵŶĚ
KƚŚĞƌKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞ
/ŶĚƵƐƚƌŝĂůtĂƐƚĞ
^ĞǁĞƌdƌĞĂƚŵĞŶƚZĞǀĞŶƵĞ
Ͳ
ϮϬϬ
ϰϬϬ
ϲϬϬ
ϴϬϬ
ϭ͕ϬϬϬ
ϭ͕ϮϬϬ
ϭ͕ϰϬϬ
ϭ͕ϲϬϬdŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞͲ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ&ƵŶĚ
'ĂŝŶŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶ
ͬ:ŽŝŶƚsĞŶƚƵƌĞ
KƚŚĞƌ/ŶĐŽŵĞ
ZĞŶƚĂů/ŶĐŽŵĞ
/ŶƚĞƌĞƐƚ/ŶĐŽŵĞ
71 Packet Pg.
374

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚZĞǀĞŶƵĞďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ
ZĞǀĞŶƵĞ
^ĞƌǀŝĐĞ
ŚĂƌŐĞƐͬ&ĞĞƐ
KƚŚĞƌ
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
dŽƚĂůKƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
/ŶƚĞƌĞƐƚ
/ŶĐŽŵĞ ZĞŶƚĂů/ŶĐŽŵĞ KƚŚĞƌ
/ŶĐŽŵĞ
'ĂŝŶŽŶĂƐƐĞƚ
ĚŝƐƉŽƐŝƚŝŽŶͬŽŶƚ
ƌŝďƵƚŝŽŶĨƌŽŵ
ŝƚǇ
dŽƚĂůEŽŶ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ
ϲͬϯϬͬϮϬϭϯ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϰ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϱ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϲ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ ŶͬĂ
ϲͬϯϬͬϮϬϭϳΎ Ϯ͕ϴϲϬ͕ϲϮϳ ϯϬ͕ϱϳϲ Ͳ Ϯ͕ ϴϵϭ͕ϮϬϯ Ϯϴ͕ϯϭϱ Ͳ Ͳ ϭϮ͕ ϱϴϬ͕ϳϴϭ ϭϮ͕ϲϬϵ͕Ϭϵϲ ϲͬϯϬͬϮϬϭϴ ϳ͕ϲϳϵ͕ϬϮϬ ϯ͕ϵϮϲ Ͳ ϳ͕ ϲϴϮ͕ϵϰϲ ϮϬϭ͕ϲϲϯ Ͳ Ϯϱϭ͕ϰϳϯ ϯ͕ϭϲϴ ϰϱϲ͕ϯϬϰ ϲͬϯϬͬϮϬϭϵ ϳ͕ϱϱϱ͕ϵϲϬ ϲ͕ϭϯϳ Ͳ ϳ͕ ϱϲϮ͕Ϭϵϳ ϱϴϰ͕ϲϴϱ Ͳ ϱ Ͳ ϱϴϰ͕ϲϵϬ ϲͬϯϬͬϮϬϮϬ ϳ͕ϲϱϲ͕ϲϳϱ ϵ͕ϲϯϰ Ͳ ϳ͕ ϲϲϲ͕ϯϬϵ ϲϮϲ͕ϳϲϭ Ͳ Ͳ ϯ͕ϬϬϯ ϲϮϵ͕ϳϲϰ ϲͬϯϬͬϮϬϮϭ ϳ͕ϳϱϵ͕ϯϭϴ ϯϱ͕ϭϬϬ Ͳ ϳ͕ ϳϵϰ͕ϰϭϴ ϭ͕ϲϬϱ Ͳ ϵ͕ϯϬϲ Ͳ ϭϬ͕ϵϭϭ ϲͬϯϬͬϮϬϮϮ ϲ͕ϯϬϲ͕ϴϰϯ ϴϳ͕ϳϴϬ Ͳ ϲ͕ ϯϵϰ͕ϲϮϯ Ͳ Ͳ Ͳ Ͳ Ͳ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽƉƌŝŽƌǇĞĂƌĚĂƚĂŝƐ ƵŶĂǀĂŝůĂďůĞ͘
Ͳ
ϭ͕ϬϬϬ
Ϯ͕ϬϬϬ
ϯ͕ϬϬϬ
ϰ͕ϬϬϬ
ϱ͕ϬϬϬ
ϲ͕ϬϬϬ
ϳ͕ϬϬϬ
ϴ͕ϬϬϬ
ϵ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ
&ƵŶĚ
KƚŚĞƌKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞ
^ĞƌǀŝĐĞŚĂƌŐĞƐͬ&ĞĞƐ
^ĞǁĞƌŽůůĞĐƚŝŽŶZĞǀĞŶƵĞ
Ͳ
Ϯ͕ϬϬϬ
ϰ͕ϬϬϬ
ϲ͕ϬϬϬ
ϴ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϮ͕ϬϬϬ
ϭϰ͕ϬϬϬdŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐZĞǀĞŶƵĞďǇdǇƉĞͲ ^ĞǁĞƌŽůůĞĐƚŝŽŶƐ&ƵŶĚ
'ĂŝŶŽŶĂƐƐĞƚ
ĚŝƐƉŽƐŝƚŝŽŶͬŽŶƚƌŝďƵƚŝŽŶĨƌŽŵ
ŝƚǇ
KƚŚĞƌ/ŶĐŽŵĞ
ZĞŶƚĂů/ŶĐŽŵĞ
72 Packet Pg.
375

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌ&ƵŶĚ
ǆƉĞŶƐĞƐďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ
ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ
WůĂŶƚKƉĞƌĂƚŝŽŶƐ
ĂŶĚŝƐƚƌŝďƵƚŝŽŶ
ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ
ĞƉƌĞĐŝĂƚŝŽŶ
ĂŶĚ
ŵŽƌƚŝǌĂƚŝŽŶ
dŽƚĂůKƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
/ŶƚĞƌĞƐƚ

ǆƉĞŶƐĞ
>ŽƐƐŽŶĂƐƐĞƚ
ĚŝƐƉŽƐŝƚŝŽŶ
KƚŚĞƌEŽŶͲ
ŽƉĞƌĂƚŝŶŐ
ĞǆƉĞŶƐĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
ϲͬϯϬͬϮϬϭϯ ϭϲ͕ϭϰϵ͕ϳϴϴ ϭϭ͕Ϭϳϯ͕ϯϯϴ Ϯ͕ϴϭϯ͕ϰϱϵ ϭ͕ϴϴϴ͕Ϯϯϲ ϱ͕ϱϬϱ͕ϰϬϯ ϯϳ͕ϰϯϬ͕ϮϮϰ ϲϴϵ͕ϲϲϱ Ϯϲϭ͕ϵϰϲ Ͳ ϵϱϭ͕ϲϭϭ ϲͬϯϬͬϮϬϭϰ ϭϰ͕ϰϭϬ͕ϰϬϬ ϭϭ͕ϯϵϱ͕ϯϬϱ Ϯ͕ϰϮϲ͕ϳϭϳ ϭ͕ϴϯϳ͕ϱϱϲ ϱ͕ϵϳϭ͕ϲϯϴ ϯϲ͕Ϭϰϭ͕ϲϭϲ Ϯϲϭ͕ϴϯϲ Ͳ Ͳ Ϯϲϭ͕ϴϯϲ ϲͬϯϬͬϮϬϭϱ ϭϯ͕Ϯϰϰ͕ϱϱϮ ϭϮ͕ϰϲϳ͕Ϭϭϳ Ϯ͕ϰϯϵ͕ϭϳϬ ϭ͕ϵϴϴ͕ϳϭϵ ϱ͕ϯϲϱ͕ϭϮϰ ϯϱ͕ϱϬϰ͕ϱϴϮ ϭϲϵ͕ϭϭϵ Ͳ Ͳ ϭϲϵ͕ϭϭϵ ϲͬϯϬͬϮϬϭϲ ϭϯ͕ϯϭϯ͕Ϭϴϱ ϭϭ͕ϰϬϲ͕ϴϲϭ Ϯ͕ϯϮϲ͕ϱϱϭ ϭ͕ϵϳϴ͕ϱϯϰ ϱ͕ϴϬϵ͕ϯϯϭ ϯϰ͕ϴϯϰ͕ϯϲϮ ϭϬϲ͕ϲϵϴ Ͳ Ͳ ϭϬϲ͕ϲϵϴ ϲͬϯϬͬϮϬϭϳ ϭϯ͕ϵϳϭ͕ϭϬϲ ϭϮ͕ϰϯϲ͕ϱϬϭ Ϯ͕ϯϮϵ͕ϭϰϮ ϭ͕ϴϱϵ͕ϴϳϭ ϲ͕ϰϳϴ͕ϬϱϬ ϯϳ͕Ϭϳϰ͕ϲϳϬ ϯ͕ϭϯϬ͕ϳϰϵ Ͳ Ͳ ϯ͕ϭϯϬ͕ϳϰϵ ϲͬϯϬͬϮϬϭϴ ϭϭ͕ϯϬϬ͕Ϭϵϭ ϭϮ͕ϯϯϳ͕ϳϲϯ ϭ͕ϵϰϯ͕ϲϱϵ Ϯ͕ϮϵϮ͕ϲϮϱ ϲ͕ϱϳϭ͕ϵϱϳ ϯϰ͕ϰϰϲ͕Ϭϵϱ Ϯ͕Ϭϭϱ͕ϳϵϮ Ͳ Ͳ Ϯ͕Ϭϭϱ͕ϳϵϮ ϲͬϯϬͬϮϬϭϵ ϵ͕ϵϴϳ͕ϭϵϴ ϭϮ͕ϴϱϯ͕ϰϬϬ Ϯ͕Ϯϱϯ͕ϯϯϯ Ϯ͕ϯϴϳ͕ϴϴϵ ϲ͕ϱϭϮ͕ϵϬϳ ϯϯ͕ϵϵϰ͕ϳϮϳ ϭ͕ϵϵϯ͕ϲϮϰ Ͳ Ͳ ϭ͕ϵϵϯ͕ϲϮϰ ϲͬϯϬͬϮϬϮϬ ϭϯ͕ϰϭϴ͕ϴϴϲ ϭϮ͕ϰϳϮ͕ϲϯϯ Ϯ͕ϲϰϭ͕ϲϰϭ Ϯ͕ϱϮϴ͕ϰϰϭ ϳ͕ϱϲϰ͕ϱϱϬ ϯϴ͕ϲϮϲ͕ϭϱϭ ϭ͕ϵϱϱ͕ϯϭϳ Ϯϱ͕Ϭϵϰ Ͳ ϭ͕ϵϴϬ͕ϰϭϭ ϲͬϯϬͬϮϬϮϭ ϭϰ͕ϰϬϱ͕ϱϱϳ ϭϰ͕Ϭϰϱ͕ϮϯϮ ϯ͕Ϭϲϰ͕ϲϮϯ ϯ͕ϭϮϲ͕ϱϱϲ ϳ͕ϴϯϴ͕ϴϴϳ ϰϮ͕ϰϴϬ͕ϴϱϱ ϭ͕ϵϮϲ͕ϭϯϯ Ͳ Ͳ ϭ͕ϵϮϲ͕ϭϯϯ ϲͬϯϬͬϮϬϮϮ ϭϭ͕ϵϮϭ͕ϯϵϰ ϭϰ͕ϲϬϯ͕ϭϯϬ ϯ͕ϬϬϭ͕ϭϬϬ Ϯ͕ϴϰϲ͕ϵϵϳ ϱ͕Ϯϱϯ͕ϰϮϱ ϯϳ͕ϲϮϲ͕Ϭϰϲ ϭ͕ϴϳϳ͕ϯϮϱ Ͳ ϰϱϲ͕ϭϳϬ Ϯ͕ϯϯϯ͕ϰϵϱ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϰϬ͕ϬϬϬ
ϰϱ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞƐďǇdǇƉĞͲtĂƚĞƌ&ƵŶĚ
ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝǌĂƚŝŽŶ
DĂŝŶƚĞŶĂŶĐĞ

ŶŐŝŶĞĞƌŝŶŐ
WůĂŶƚKƉĞƌĂƚŝŽŶƐĂŶĚŝƐƚƌŝďƵƚŝŽŶ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ
Ͳ
ϱϬϬ
ϭ͕ϬϬϬ
ϭ͕ϱϬϬ
Ϯ͕ϬϬϬ
Ϯ͕ϱϬϬ
ϯ͕ϬϬϬ
ϯ͕ϱϬϬ
ϲͬϯϬͬϮϬϭϯ ϲͬϯϬͬϮϬϭϰ ϲͬϯϬͬϮϬϭϱ ϲͬϯϬͬϮϬϭϲ ϲͬϯϬͬϮϬϭϳ ϲͬϯϬͬϮϬϭϴ ϲͬϯϬͬϮϬϭϵ ϲͬϯϬͬϮϬϮϬ ϲͬϯϬͬϮϬϮϭ ϲͬϯϬͬϮϬϮϮ dŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞďǇdǇƉĞ͗tĂƚĞƌ&ƵŶĚ
KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞǆƉĞŶƐĞ
>ŽƐƐŽŶĂƐƐĞƚĚŝƐƉŽƐŝƚŝŽŶ
/ŶƚĞƌĞƐƚ
ǆƉĞŶƐĞ
73 Packet Pg.
376

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌ&ƵŶĚ
ǆƉĞŶƐĞƐďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ
ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ WůĂŶƚKƉĞƌĂƚŝŽŶƐ
ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ
ĞƉƌĞĐŝĂƚŝŽŶ
ĂŶĚ
ŵŽƌƚŝǌĂƚŝŽŶ
dŽƚĂůKƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
/ŶƚĞƌĞƐƚ

ǆƉĞŶƐĞ
>ŽƐƐŽŶƐƐĞƚ
ŝƐƉŽƐŝƚŝŽŶ
ͬ:ŽŝŶƚsĞŶƚƵƌĞ
KƚŚĞƌEŽŶͲ
ŽƉĞƌĂƚŝŶŐ
ĞǆƉĞŶƐĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
ϲͬϯϬͬϮϬϭϯ ϰ͕ϰϱϰ͕ϳϭϯ ϭϬ͕ ϬϰϬ͕ϴϵϱ Ͳ ϯ͕ϯϵϮ͕ϴϲϴ ϰ͕ ϰϬϴ͕ϳϮϭ ϮϮ͕Ϯϵϳ͕ϭϵϳ ϴϮϴ͕ϭϮϵ ϭϭ͕ϲϰϰ ϭϱϰ͕ϭϴϬ ϵϵϯ͕ϵϱϯ ϲͬϯϬͬϮϬϭϰ ϱ͕ϯϰϱ͕ϳϮϲ ϵ͕ ϱϮϴ͕Ϯϭϴ ϱϮϳ͕Ϯϵϰ ϯ͕ϭϰϲ͕Ϯϳϱ ϯ͕ ϰϮϲ͕ϱϭϱ Ϯϭ͕ϵϳϰ͕ϬϮϴ ϱϱϳ͕Ϭϰϵ ϭϲ͕Ϯϰϰ ϭ͕Ϯϯϴ͕ϳϬϯ ϭ͕ϴϭϭ͕ϵϵϲ ϲͬϯϬͬϮϬϭϱ ϰ͕Ϭϭϲ͕ϭϵϴ ϵ͕ ϮϵϮ͕ϱϬϭ ϱϯϰ͕ϮϮϲ Ϯ͕ϵϬϲ͕ϴϱϯ Ϯ͕ ϴϳϬ͕ϱϱϬ ϭϵ͕ϲϮϬ͕ϯϮϴ ϮϮϳ͕ϭϲϱ Ͳ Ͳ ϮϮϳ͕ϭϲϱ ϲͬϯϬͬϮϬϭϲ ϰ͕Ϯϵϵ͕ϴϬϴ ϵ͕ ϴϬϬ͕Ϯϴϯ ϰϲϰ͕ϱϱϰ Ϯ͕ϴϳϰ͕ϯϱϮ ϭ͕ ϮϵϮ͕ϰϮϲ ϭϴ͕ϳϯϭ͕ϰϮϯ ϭϲϳ͕ϳϵϱ ϭ͕ ϭϭϲ͕Ϭϳϴ Ͳ ϭ͕Ϯϴϯ͕ϴϳϯ ϲͬϯϬͬϮϬϭϳ ϲ͕ϳϵϵ͕ϲϯϵ ϵ͕ ϲϮϬ͕ϲϯϵ ϰϴϬ͕ϵϱϭ ϯ͕ϭϯϱ͕ϲϴϲ ϰ͕ ϭϬϮ͕ϵϲϯ Ϯϰ͕ϭϯϵ͕ϴϳϴ ϭ͕ϯϬϬ͕Ϯϲϯ Ϯ͕ϯϮϭ͕ϰϴϱ ϰϮ͕ϮϬϵ ϯ͕ϲϲϯ͕ϵϱϳ ϲͬϯϬͬϮϬϭϴ ϱ͕ϲϵϬ͕ϱϬϳ ϵ͕ Ϭϱϲ͕ϱϭϴ ϱϬϬ͕ϬϬϵ ϯ͕Ϯϴϭ͕ϰϰϲ ϰ͕ ϭϱϳ͕ϱϱϬ ϮϮ͕ϲϴϲ͕ϬϯϬ ϭ͕ϯϳϲ͕ϬϬϵ ϭ͕Ϯϰϳ͕ϲϳϬ ϳϯϯ͕ϱϴϯ ϯ͕ϯϱϳ͕ϮϲϮ ϲͬϯϬͬϮϬϭϵ ϲ͕ϳϳϱ͕ϱϱϮ ϭϬ͕ ϭϭϴ͕ϱϬϲ ϲϭϳ͕ϴϱϱ ϯ͕Ϭϰϭ͕ϲϮϬ ϰ͕ ϯϭϯ͕ϭϰϳ Ϯϰ͕ϴϲϲ͕ϲϴϭ ϭ͕ϯϲϳ͕ϯϳϱ ϭ͕ϱϱϯ͕Ϯϲϭ Ͳ Ϯ͕ϵϮϬ͕ϲϯϱ ϲͬϯϬͬϮϬϮϬ ϱ͕ϳϬϮ͕ϵϳϯ ϭϬ͕ ϰϳϬ͕ϱϬϭ ϯϲϵ͕ϰϮϮ ϯ͕ϱϬϴ͕ϱϯϰ ϰ͕ ϱϵϲ͕ϵϴϬ Ϯϰ͕ϲϰϴ͕ϰϭϭ ϭ͕ϯϭϯ͕ϭϱϭ ϭ͕ϱϰϲ͕ϯϵϲ Ͳ Ϯ͕ϴϱϵ͕ϱϰϲ ϲͬϯϬͬϮϬϮϭ ϲ͕ϮϵϮ͕ϯϭϯ ϭϭ͕ ϵϴϲ͕ϴϱϴ ϯϴϳ͕ϵϯϮ ϯ͕ϴϭϭ͕ϰϭϯ ϰ͕ ϱϬϳ͕ϴϲϵ Ϯϲ͕ϵϴϲ͕ϯϴϱ ϭ͕Ϯϴϯ͕ϴϲϭ ϭ͕ϰϳϵ͕ϳϮϵ ϯϴ͕ϯϲϯ Ϯ͕ϴϬϭ͕ϵϱϯ ϲͬϯϬͬϮϬϮϮ ϯ͕ϲϲϲ͕ϱϰϳ ϭϰ͕ ϲϰϴ͕ϱϯϬ ϯϴϱ͕ϱϭϳ ϯ͕ϳϲϰ͕ϲϭϴ ϰ͕ ϯϮϵ͕ϭϳϴ Ϯϲ͕ϳϵϰ͕ϯϵϬ ϭ͕Ϯϰϵ͕ϳϭϱ Ͳ Ύ ϭ͕ Ϭϯϴ͕Ϯϵϭ Ϯ͕Ϯϴϴ͕ϬϬϲ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
Ύ:ŽŝŶƚsĞŶƚƵƌĞĞǆƉĞŶƐĞƌĞůĂƚŝŶŐƚŽZ/yŽƉĞƌĂƚŝŽŶƐĂƌĞŶŽǁĐůĂƐƐŝĨŝĞĚĂƐKƉĞƌĂƚŝŽŶƐďĞŐŝŶŶŝŶŐŝŶϮϬϮϮ͘ Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞƐďǇdǇƉĞͲ^ĞǁĞƌ&ƵŶĚ
ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝǌĂƚŝŽŶ
DĂŝŶƚĞŶĂŶĐĞ

ŶŐŝŶĞĞƌŝŶŐ
WůĂŶƚKƉĞƌĂƚŝŽŶƐ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ
Ͳ
ϱϬϬ
ϭ͕ϬϬϬ
ϭ͕ϱϬϬ
Ϯ͕ϬϬϬ
Ϯ͕ϱϬϬ
ϯ͕ϬϬϬ
ϯ͕ϱϬϬ
ϰ͕ϬϬϬdŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞďǇdǇƉĞ͗^ĞǁĞƌ&ƵŶĚ
KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞǆƉĞŶƐĞ
>ŽƐƐŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶͬ:ŽŝŶƚsĞŶƚƵƌĞ
/ŶƚĞƌĞƐƚ
ǆƉĞŶƐĞ
74 Packet Pg.
377

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
ǆƉĞŶƐĞƐďǇdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘ
ƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ WůĂŶƚKƉĞƌĂƚŝŽŶƐ
ŶŐŝŶĞĞƌŝŶŐ DĂŝŶƚĞŶĂŶĐĞ ĞƉƌĞĐŝĂƚŝŽŶĂŶĚ
ŵŽƌƚŝǌĂƚŝŽŶ
dŽƚĂůKƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
/ŶƚĞƌĞƐƚ

ǆƉĞŶƐĞ
>ŽƐƐŽŶƐƐĞƚ
ŝƐƉŽƐŝƚŝŽŶ
KƚŚĞƌEŽŶͲ
ŽƉĞƌĂƚŝŶŐ
ĞǆƉĞŶƐĞ
dŽƚĂůEŽŶͲ
KƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞ
ϲͬϯϬͬϮϬϭϯ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϰ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϱ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϲ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϳ ϯϭϰ͕Ϯϲϱ ϰϵϮ͕ϲϳϱ Ͳ Ͳ Ϯϰϳ͕ϵϮϲ ϭ͕Ϭϱϰ͕ϴϲϲ Ͳ Ͳ ϲ͕ϵϱϭ ϲ͕ϵϱϭ ϲͬϯϬͬϮϬϭϴ Ϯ͕Ϯϭϭ͕ϭϴϴ ϯϱϰ͕ϰϮϯ ϴ͕ Ϭϳϭ͕ϴϵϭ Ͳ ϭ͕ ϬϮϵ͕ϲϰϴ ϭϭ͕ ϲϲϳ͕ϭϱϬ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϭϵ ϭ͕ϲϬϴ͕Ϭϳϰ ϰϯϵ͕ϲϲϬ ϱ͕ Ϭϱϭ͕ϳϳϯ Ͳ ϭ͕ Ϭϳϯ͕ϰϭϱ ϴ͕ ϭϳϮ͕ϵϮϮ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϬ ϭ͕ϴϵϴ͕ϰϲϭ ϰϴϯ͕ϯϭϲ ϰ͕ ϭϮϰ͕ϲϯϭ Ͳ ϭ͕ ϭϰϰ͕Ϭϵϲ ϳ͕ ϲϱϬ͕ϱϬϰ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϭ ϯ͕ϰϵϳ͕ϵϲϵ ϱϯϯ͕ϲϭϵ Ϯ͕ ϱϰϵ͕Ϯϱϳ Ͳ ϭ͕ Ϯϴϭ͕ϲϬϮ ϳ͕ ϴϲϮ͕ϰϰϳ Ͳ Ͳ Ͳ Ͳ ϲͬϯϬͬϮϬϮϮ Ϯ͕ϱϯϱ͕ϯϭϰ ϱϵϬ͕ϲϬϬ ϯ͕ ϯϯϯ͕ϴϬϰ Ͳ ϭ͕ ϰϮϴ͕ϯϰϳ ϳ͕ ϴϴϴ͕Ϭϲϱ Ͳ Ͳ ϱϭϭ͕Ϯϯϰ ϱϭϭ͕Ϯϯϰ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽƉƌŝŽƌǇĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ Ͳ
Ϯ͕ϬϬϬ
ϰ͕ϬϬϬ
ϲ͕ϬϬϬ
ϴ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϮ͕ϬϬϬ
ϭϰ͕ϬϬϬdŚŽƵƐĂŶĚƐ
KƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞƐďǇdǇƉĞͲ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
ĞƉƌĞĐŝĂƚŝŽŶĂŶĚŵŽƌƚŝǌĂƚŝŽŶ
DĂŝŶƚĞŶĂŶĐĞ

ŶŐŝŶĞĞƌŝŶŐ
WůĂŶƚKƉĞƌĂƚŝŽŶƐ
ĚŵŝŶŝƐƚƌĂƚŝŽŶΘƵƐƚŽŵĞƌ^ĞƌǀŝĐĞ
Ͳ
ϭϬϬ
ϮϬϬ
ϯϬϬ
ϰϬϬ
ϱϬϬ
ϲϬϬdŚŽƵƐĂŶĚƐ
EŽŶͲKƉĞƌĂƚŝŶŐ
ǆƉĞŶƐĞďǇdǇƉĞ͗^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
KƚŚĞƌEŽŶͲŽƉĞƌĂƚŝŶŐĞǆƉĞŶƐĞ
>ŽƐƐŽŶƐƐĞƚŝƐƉŽƐŝƚŝŽŶ
/ŶƚĞƌĞƐƚ
ǆƉĞŶƐĞ
75 Packet Pg.
378

7+,63$*(,17(17,21$//</()7%/$1.
76 Packet Pg.
379

dW/dz/E&KZDd/KE
dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶŝŶĨŽƌŵĂƚŝŽŶƚŽŚĞůƉƚŚĞƌĞĂĚĞƌĂƐƐĞƐƐ ƚŚĞĂĨĨŽƌĚĂďŝůŝƚǇŽĨƚŚĞĞƉĂƌƚŵĞŶƚΖƐĐƵƌƌĞŶƚůĞǀĞůŽĨ ŽƵƚƐƚĂŶĚŝŶŐĚĞďƚĂŶĚĂďŝůŝƚǇƚŽŝƐƐƵĞĚĞďƚŝŶƚŚĞĨƵƚƵƌĞ͘ 77 Packet Pg.
380

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌ&ƵŶĚĞďƚ^ĞƌǀŝĐĞŽǀĞƌĂŐĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
EĞƚKƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞƐ
;
ǆĐůƵĚŝŶŐͿ
ĞƉƌĞĐŝĂƚŝŽŶ
EĞƚKƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ;>ŽƐƐͿ
EĞƚEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞͬ
;
ǆƉĞŶƐĞͿ
ŵŽƵŶƚ
ǀĂŝůĂďůĞĨŽƌ
Ğďƚ^ĞƌǀŝĐĞ
WƌŝŶĐŝƉĂů /ŶƚĞƌĞƐƚ dŽƚĂůĞďƚ
^ĞƌǀŝĐĞ
ŽǀĞƌĂŐĞ
ZĂƚŝŽ
ϲͬϯϬͬϮϬϭϯ ϯϳ͕ϴϲϴ͕ϴϰϲ ϯϭ͕ϵϮϰ͕ϴϮϭ ϱ͕ϵϰϰ͕ϬϮϱ Ϯ ͕ϰϵϮ͕ϰϰϴ ϴ͕ϰϯϲ͕ϰϳϯ ϭ͕ϮϮϳ͕ϰϵϭ ϱϰϳ͕ϲϭ ϲ ϭ͕ϳϳϱ͕ϭϬϳ ϰ͘ϳϱ ϲͬϯϬͬϮϬϭϰ ϯϲ͕ϲϳϭ͕ϵϬϯ ϯϬ͕Ϭϲϵ͕ϵϳϴ ϲ͕ϲϬϭ͕ϵϮϱ Ϯ ͕ϱϬϰ͕ϳϬϱ ϵ͕ϭϬϲ͕ϲϯϬ ϭ͕ϲϱϴ͕Ϯϲϱ ϲϲϬ͕ϴϱ ϰ Ϯ͕ϯϭϵ͕ϭϭϵ ϯ͘ϵϯ ϲͬϯϬͬϮϬϭϱ ϯϯ͕ϭϮϭ͕ϭϮϴ ϯϬ͕ϭϯϵ͕ϰϱϴ Ϯ͕ϵϴϭ͕ϲϳϬ Ϯ ͕ϳϬϮ͕ϵϱϯ ϱ͕ϲϴϰ͕ϲϮϯ ϭ͕ϳϰϴ͕Ϭϱϰ ϱϳϬ͕ϰϯ ϰ Ϯ͕ϯϭϴ͕ϰϴϴ Ϯ͘ϰϱ ϲͬϯϬͬϮϬϭϲ ϯϬ͕ϬϬϭ͕ϴϳϭ Ϯϵ͕ϬϮϱ͕Ϭϯϭ ϵϳϲ͕ϴϰϬ Ϯ͕Ϯϴϯ͕ϮϯϬ ϯ͕ϮϲϬ͕ϬϳϬ ϭ͕ϴϭϯ͕ϱϵϰ ϱϮϯ͕Ϯ ϳϰ Ϯ͕ϯϯϲ͕ϴϲϴ ϭ͘ϰϬ ϲͬϯϬͬϮϬϭϳ ϯϯ͕ϯϱϴ͕ϵϬϳ ϯϬ͕ϱϵϲ͕ϲϮϬ Ϯ͕ϳϲϮ͕Ϯϴϳ Ϯ ͕ϱϴϰ͕ϰϲϴ ϱ͕ϯϰϲ͕ϳϱϱ Ϯϰϲ͕ϴϴϳ Ϯϭϴ͕ϴ ϭϵ ϰϲϱ͕ϳϬϲ ϭϭ͘ϰϴ ϲͬϯϬͬϮϬϭϴ ϯϴ͕ϮϴϬ͕Ϭϭϲ Ϯϳ͕ϴϳϰ͕ϭϰϴ ϭϬ͕ϰϬϱ͕ϴϲϴ ϯ͕ ϭϲϳ͕ϱϵϳ ϭϯ͕ϱϳϯ͕ϰϲϱ ϳϳϬ͕ϬϬϬ Ϯ͕ϮϮϯ͕ϴϯϴ Ϯ͕ϵϵϯ͕ϴϯϴ ϰ͘ϱϯ ϲͬϯϬͬϮϬϭϵ ϯϵ͕Ϭϵϵ͕ϵϲϬ Ϯϳ͕ϰϴϮ͕ϭϯϬ ϭϭ͕ϲϭϳ͕ϴϯϬ ϯ͕ ϴϭϬ͕ϰϬϯ ϭϱ͕ϰϮϴ͕Ϯϯϯ ϳϵϱ͕ϬϬϬ Ϯ͕ϭϵϲ͕ϯϴϴ Ϯ͕ϵϵϭ͕ϯϴϴ ϱ͘ϭϲ ϲͬϯϬͬϮϬϮϬ ϰϬ͕Ϯϲϳ͕ϯϳϲ ϯϭ͕Ϭϲϭ͕ϲϬϭ ϵ͕ϮϬϱ͕ϳϳϱ ϯ ͕ϲϯϲ͕Ϭϯϵ ϭϮ͕ϴϰϭ͕ϴϭϰ ϴϯϬ͕ϬϬϬ Ϯ͕ϭϲϯ͕ϴϴϴ Ϯ͕ϵϵϯ͕ϴϴϴ ϰ͘Ϯϵ ϲͬϯϬͬϮϬϮϭ ϰϮ͕ϳϱϴ͕ϭϵϮ ϯϰ͕ϲϰϭ͕ϵϲϴ ϴ͕ϭϭϲ͕ϮϮϰ Ϯ ͕ϲϯϯ͕ϵϳϴ ϭϬ͕ϳϱϬ͕ϮϬϮ ϴϲϬ͕ϬϬϬ Ϯ͕ϭϯϬ͕Ϭϴϴ Ϯ͕ϵϵϬ͕Ϭϴϴ ϯ͘ϲϬ ϲͬϯϬͬϮϬϮϮ ϰϯ͕ϭϱϬ͕ϭϮϰ ϯϮ͕ϯϳϮ͕ϲϮϭ ϭϬ͕ϳϳϳ͕ϱϬϯ Ϯ͕ ϯϯϮ͕ϰϰϬ ϭϯ͕ϭϬϵ͕ϵϰϯ ϵϬϬ͕ϬϬϬ Ϯ͕ϬϵϬ͕ϯϴϴ Ϯ͕ϵϵϬ͕ϯϴϴ ϰ͘ϯϴ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
78 Packet Pg.
381

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌ&ƵŶĚĞďƚ^ĞƌǀŝĐĞŽǀĞƌĂŐĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ
dŽƚĂů
KƉĞƌĂƚŝŶŐ
ZĞǀĞŶƵĞ
EĞƚKƉĞƌĂƚŝŶŐ

ǆƉĞŶƐĞƐ
;
ǆĐůƵĚŝŶŐͿ
ĞƉƌĞĐŝĂƚŝŽŶ
EĞƚKƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞ;>ŽƐƐͿ
EĞƚEŽŶͲ
KƉĞƌĂƚŝŶŐ
/ŶĐŽŵĞͬ
;
ǆƉĞŶƐĞͿ
ŵŽƵŶƚ
ǀĂŝůĂďůĞĨŽƌ
Ğďƚ^ĞƌǀŝĐĞ
WƌŝŶĐŝƉĂů /ŶƚĞƌĞƐƚ dŽƚĂůĞďƚ
^ĞƌǀŝĐĞ
ŽǀĞƌĂŐĞ
ZĂƚŝŽ
ϲͬϯϬͬϮϬϭϯ Ϯϱ͕ϲϳϬ͕ϳϳϰ ϭϴ͕ϱϰϳ͕ϱϭϯ ϳ͕ϭϮϯ͕Ϯϲϭ ;ϲϯϬ͕ϲϵϬͿ ϲ͕ϰϵϮ͕ϱϳϭ ϰ͕ϳϮϰ͕ϮϮϳ ϳϱϳ͕ ϬϭϬ ϱ͕ϰϴϭ͕Ϯϯϳ ϭ͘ϭϴ ϲͬϯϬͬϮϬϭϰ Ϯϰ͕ϳϯϰ͕ϰϮϱ ϭϲ͕ϳϰϵ͕ϳϳϴ ϳ͕ϵϴϰ͕ϲϰϳ ; ϭ͕ϭϮϵ͕ϭϲϵͿ ϲ͕ϴϱϱ͕ϰϳϴ ϰ͕ϰϮϰ͕ϬϵϬ ϳϰϳ͕ϰ ϲϬ ϱ͕ϭϳϭ͕ϱϱϬ ϭ͘ϯϯ ϲͬϯϬͬϮϬϭϱ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϲ͕ϳϰϵ͕ϳϳϴ ϴ͕ϲϲϬ͕ϵϲϮ ϭ͕Ϭϵϴ͕ϴϳϳ ϵ͕ϳϱϵ͕ϴϯϵ ϰ͕ϲϮϵ͕ϰϮϱ ϱϲϴ͕ ϴϴϴ ϱ͕ϭϵϴ͕ϯϭϯ ϭ͘ϴϴ ϲͬϯϬͬϮϬϭϲ Ϯϱ͕ϰϭϬ͕ϳϰϬ ϭϳ͕ϰϯϴ͕ϵϵϳ ϳ͕ϵϳϭ͕ϳϰϯ ;ϮϮϰ͕ϭϭϵͿ ϳ͕ϳϰϳ͕ϲϮϰ ϯϬϬ͕ϬϬϬ Ͳ ϯϬϬ͕ϬϬϬ Ϯϱ͘ϴϯ ϲͬϯϬͬϮϬϭϳ Ϯϴ͕ϲϭϮ͕Ϭϭϵ ϮϬ͕Ϭϯϲ͕ϵϭϲ ϴ͕ϱϳϱ͕ϭϬϯ ϯϵ͕Ϯϵϵ ϴ͕ϲϭϰ͕ϰϬϮ ϯϬϬ͕ϬϬϬ ϭ ϯϮ͕ϲϱϵ ϰϯϮ͕ϲϱϵ ϭϵ͘ϵϭ ϲͬϯϬͬϮϬϭϴ ϯϬ͕ϳϯϯ͕ϰϱϯ ϭϴ͕ϱϯϵ͕ϵϰϭ ϭϮ͕ϭϵϯ͕ϱϭϮ ;ϳϮϭ͕ϭϬϯͿ ϭϭ͕ϰϳϮ͕ϰϬϵ ϴϵϬ͕ϬϬϬ ϭ͕ϯϴϮ͕ϳϴϮ Ϯ͕ϮϳϮ͕ϳϴϮ ϱ͘Ϭϱ ϲͬϯϬͬϮϬϭϵ ϯϬ͕ϱϰϲ͕ϭϴϭ ϮϬ͕ϴϰϭ͕ϲϵϵ ϵ͕ϳϬϰ͕ϰϴϮ ϭ͕ϯϲϭ͕ϵϯϱ ϭϭ͕Ϭϲϲ͕ϰϭϳ ϵϭϬ͕ϬϬϬ ϭ͕ϯϱϲ͕ϭϮ ϱ Ϯ͕Ϯϲϲ͕ϭϮϱ ϰ͘ϴϴ ϲͬϯϬͬϮϬϮϬ ϯϬ͕ϯϵϳ͕ϬϵϮ ϮϬ͕Ϭϱϭ͕ϰϯϭ ϭϬ͕ϯϰϱ͕ϲϲϭ ϭ ͕ϯϮϮ͕ϯϲϳ ϭϭ͕ϲϲϴ͕ϬϮϴ ϵϯϱ͕ϬϬϬ ϭ͕ϯϯϭ͕ϮϮϱ Ϯ͕Ϯϲϲ͕ϮϮϱ ϱ͘ϭϱ ϲͬϯϬͬϮϬϮϭ ϯϬ͕ϯϲϭ͕ϭϭϲ ϮϮ͕ϰϳϴ͕ϱϭϲ ϳ͕ϴϴϮ͕ϲϬϬ ϭϵ͕ϰϳϮ ϳ͕ϵϬϮ͕ϬϳϮ ϲϲϱ͕ϬϬϬ ϭ͕ϯϬ ϭ͕ϵϬϬ ϭ͕ϵϲϲ͕ϵϬϬ ϰ͘ϬϮ ϲͬϯϬͬϮϬϮϮ ϯϰ͕ϭϳϭ͕ϭϲϬ ϮϮ͕ϰϲϱ͕ϮϭϮ ϭϭ͕ϳϬϱ͕ϵϰϴ ;ϭ͕ ϬϮϭ͕ϵϴϭͿ ϭϬ͕ϲϴϯ͕ϵϲϳ ϳϬϬ͕ϬϬϬ ϭ͕Ϯϲϳ͕ϳϳϱ ϭ͕ϵϲϳ͕ϳϳϱ ϱ͘ϰϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
79 Packet Pg.
382

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
ZĂƚŝŽƐŽĨKƵƚƐƚĂŶĚŝŶŐĞďƚďǇdǇƉĞ;/ŶdŚŽƵƐĂŶĚƐŽĨŽůůĂƌƐͿ >ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ ZĞǀĞŶƵĞŽŶĚƐ EŽƚĞƐͬ>ŽĂŶƐ
WĂǇĂďůĞ
ĞƌƚŝĨŝĐĂƚĞƐŽĨ
WĂƌƚŝĐŝƉĂƚŝŽŶ ĂƉŝƚĂů>ĞĂƐĞƐ dŽƚĂů
WĞƌĐĞŶƚĂŐĞŽĨ
WĞƌƐŽŶĂů
/ŶĐŽŵĞ
ĞďƚWĞƌ
ĂƉŝƚĂ

ϲͬϯϬͬϮϬϭϯ Ͳ Ϯϵ͕ϰϱϮ ϭϮ͕ϭϰϱ Ͳ ϰϭ͕ϱϵϳ Ϭ͘ϲй Ϭ͘ϮϬ ϲͬϯϬͬϮϬϭϰ Ͳ Ϯϲ͕ϭϳϰ ϵ͕ϯϰϬ Ͳ ϯϱ͕ϱϭϰ Ϭ͘ϱй Ϭ͘ϭϳ ϲͬϯϬͬϮϬϭϱ Ͳ ϮϮ͕ϴϮϲ ϲ͕ϯϳϱ Ͳ Ϯϵ͕ϮϬϭ Ϭ͘ϰй Ϭ͘ϭϰ ϲͬϯϬͬϮϬϭϲ Ͳ ϮϬ͕ϱϲϵ Ͳ Ͳ ϮϬ͕ϱϲϵ Ϭ͘ϯй Ϭ͘ϭϬ ϲͬϯϬͬϮϬϭϳ ϴϴ͕ϲϱϲ ϵϬϬ Ͳ Ͳ ϴϵ͕ϱϱϲ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϭϴ ϴϳ͕ϬϵϮ ϲϬϬ Ͳ Ͳ ϴϳ͕ϲϵϮ ϭ͘Ϭй Ϭ͘ϯϳ ϲͬϯϬͬϮϬϭϵ ϴϱ͕ϰϴϯ ϯϬϬ Ͳ Ͳ ϴϱ͕ϳϴϯ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϮϬ ϴϯ͕ϴϭϰ Ͳ Ͳ Ͳ ϴϯ͕ϴϭϰ ϭ͘Ϭй Ϭ͘ϯϵ ϲͬϯϬͬϮϬϮϭ ϴϮ͕Ϭϴϱ Ͳ Ͳ Ͳ ϴϮ͕Ϭϴϱ ϭ͘ϭй Ϭ͘ϯϴ ϲͬϯϬͬϮϬϮϮ ϴϬ͕ϮϮϭ Ͳ Ͳ Ͳ ϴϬ͕ϮϮϭ ϭ͘ϳй Ϭ͘ϯϲ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐĂŶŶƵĂůƌĞƉŽƌƚƐ
80 Packet Pg.
383

DK'ZW,/E
KEKD//E&KZDd/KE
dŚĞƐĞƐĐŚĞĚƵůĞƐŽĨĨĞƌĚĞŵŽŐƌĂƉŚŝĐĂŶĚĞĐŽŶŽŵŝĐŝŶĚŝĐĂƚŽƌƐ ƚŽŚĞůƉƚŚĞƌĞĂĚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞĞŶǀŝƌŽŶŵĞŶƚǁŝƚŚŝŶǁŚŝĐŚ ƚŚĞĞƉĂƌƚŵĞŶƚΖƐĨŝŶĂŶĐŝĂůĂĐƚŝǀŝƚŝĞƐƚĂŬĞƉůĂĐĞ͘
81 Packet Pg.
384

7+,63$*(,17(17,21$//</()7%/$1.
82 Packet Pg.
385

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
ĞŵŽŐƌĂƉŚŝĐ^ƚĂƚŝƐƚŝĐƐ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
&ŝƐĐĂůzĞĂƌ

ŶĚĞĚ

ƐƚŝŵĂƚĞĚ
WŽƉƵůĂƚŝŽŶ;ϭͿ
WĞƌƐŽŶĂů
/ŶĐŽŵĞ;/Ŷ
dŚŽƵƐĂŶĚƐͿ;ϮͿ
WĞƌĂƉŝƚĂ
WĞƌƐŽŶĂů
/ŶĐŽŵĞ;ϮͿ
hŶĞŵƉůŽǇŵĞŶƚZĂƚĞ
;ϯͿ
ϲͬϯϬͬϮϬϭϯ Ϯϭϭ͕ϵϵϰ ϳ͕ϬϬϭ͕ϭϬϮ ϯϯ͕ϬϮϱ ϵ͘ϴϬй ϲͬϯϬͬϮϬϭϰ ϮϭϮ͕ϱϴϰ ϳ͕ϬϳϬ͕ϭϭϵ ϯϯ͕Ϯϱϴ ϭϬ͘ϭϬй ϲͬϯϬͬϮϬϭϱ Ϯϭϯ͕ϵϯϯ ϳ͕ϲϰϱ͕ϴϳϵ ϯϱ͕ϳϰϬ ϲ͘ϴϬй ϲͬϯϬͬϮϬϭϲ Ϯϭϱ͕ϰϵϭ ϳ͕ϵϯϭ͕ϱϳϳ ϯϲ͕ϴϬϳ ϲ͘ϯϬй ϲͬϯϬͬϮϬϭϳ Ϯϭϲ͕ϵϳϮ ϴ͕ϰϱϵ͕ϯϬϰ ϯϴ͕ϵϴϴ ϱ͘ϱϬй ϲͬϯϬͬϮϬϭϴ ϮϮϭ͕ϭϯϬ ϴ͕ϱϮϯ͕ϲϳϳ ϯϴ͕ϱϰϲ ϱ͘ϳϬй ϲͬϯϬͬϮϬϭϵ Ϯϭϵ͕Ϯϯϯ ϴ͕ϱϬϵ͕ϳϰϴ ϯϴ͕ϴϭϲ ϰ͘ϭϬй ϲͬϯϬͬϮϬϮϬ Ϯϭϳ͕ϲϳϭ ϴ͕ϭϱϵ͕Ϯϴϵ ϯϳ͕ϰϴϱ ϭϭ͘ϯϬй ϲͬϯϬͬϮϬϮϭ Ϯϭϲ͕Ϯϵϭ ϳ͕ϳϮϯ͕ϯϭϵ ϯϱ͕ϳϬϴ ϴ͘ϭϬй ϲͬϯϬͬϮϬϮϮ ϮϮϮ͕ϮϬϯ ϰ͕ϲϮϰ͕ϰϴϵ ϮϬ͕ϴϭϮ ϯ͘ϵϬй ;ϭͿĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ
;ϮͿh͘^͘ĞƉĂƌƚŵĞŶƚŽĨŽŵŵĞƌĐĞ͕ƵƌĞĂƵŽĨ
ĐŽŶŽŵŝĐŶĂůǇƐĨŽƌϮϬϬϲͲϮϬϭϯ;ZŝǀĞƌƐŝĚĞͲ^ĂŶĞƌŶĂƌĚŝŶŽD^Ϳ ;ϯͿ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ͕
ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ͖ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉƚ
ϮϬϲ͕ϬϬϬ
ϮϬϴ͕ϬϬϬ
ϮϭϬ͕ϬϬϬ
ϮϭϮ͕ϬϬϬ
Ϯϭϰ͕ϬϬϬ
Ϯϭϲ͕ϬϬϬ
Ϯϭϴ͕ϬϬϬ
ϮϮϬ͕ϬϬϬ
ϮϮϮ͕ϬϬϬ
ϮϮϰ͕ϬϬϬ
WŽƉƵůĂƚŝŽŶ
Ͳ
ϭ͕ϬϬϬ͕ϬϬϬ
Ϯ͕ϬϬϬ͕ϬϬϬ
ϯ͕ϬϬϬ͕ϬϬϬ
ϰ͕ϬϬϬ͕ϬϬϬ
ϱ͕ϬϬϬ͕ϬϬϬ
ϲ͕ϬϬϬ͕ϬϬϬ
ϳ͕ϬϬϬ͕ϬϬϬ
ϴ͕ϬϬϬ͕ϬϬϬ
ϵ͕ϬϬϬ͕ϬϬϬ
WĞƌƐŽŶĂů/ŶĐŽŵĞ
Ͳ
ϱ͕ϬϬϬ
ϭϬ͕ϬϬϬ
ϭϱ͕ϬϬϬ
ϮϬ͕ϬϬϬ
Ϯϱ͕ϬϬϬ
ϯϬ͕ϬϬϬ
ϯϱ͕ϬϬϬ
ϰϬ͕ϬϬϬ
ϰϱ͕ϬϬϬ
WĞƌĂƉŝƚĂWĞƌƐŽŶĂů/ŶĐŽŵĞ
Ϭ͘ϬϬй
Ϯ͘ϬϬй
ϰ͘ϬϬй
ϲ͘ϬϬй
ϴ͘ϬϬй
ϭϬ͘ϬϬй
ϭϮ͘ϬϬй
hŶĞŵƉůŽǇŵĞŶƚ
83 Packet Pg.
386

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
DĂũŽƌ
ŵƉůŽǇĞƌƐ
ƵƌƌĞŶƚzĞĂƌĂŶĚEŝŶĞzĞĂƌƐŐŽ
&ŝƐĐĂůzĞĂƌϮϬϮϮ &ŝƐĐĂůzĞĂƌϮϬϭϯΎ

ŵƉůŽǇĞƌ ZĂŶŬŝŶŐ EƵŵďĞƌŽĨ
ŵƉ ůŽǇĞĞƐ ZĂŶŬŝŶŐ EƵŵďĞƌŽĨ
ŵƉůŽǇĞĞƐ
ŽƵŶƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭ ϮϮ͕ϳϭϵ ϵ ϭϬϬϬн ^ƚĂƚĞƌƌŽƚŚĞƌƐ Ϯ ϭϴ͕ϬϬϬ ^ĂŶĞƌŶĂƌĚŝŶŽŝƚǇhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƌŝĐƚ ϯ ϲ͕ϰϬϬ ϱ ϭϬϬϬн <ĂŝƐĞƌWĞƌŵĂŶĞŶƚĞͲ&ŽŶƚĂŶĂDĞĚ ϰ ϭ͕ϬϬϬͲϰ͕ϵϵϵ
ƌƌŽǁŚĞĂĚƌĞŐŝŽŶĂůDĞĚŝĐĂůĞŶƚĞƌ ϱ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϭ ϭϬϬϬн

ŶǀŝƌŽŶŵĞŶƚĂů^ǇƐƚĞŵƐZĞƐĞĂƌĐŚ ϲ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϭϬ ϭϬϬϬн
ĂůŝĨŽƌŶŝĂ^ƚĂƚĞhŶǀĞƌƐŝƚǇͲ^ĂŶĞƌŶĂƌĚŝŶŽ ϳ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϰ ϭϬϬϬн >
,W,ĞĂůƚŚ^ĞƌǀŝĐĞƐ ϴ ϭ͕ϬϬϬͲϰ͕ϵϵϵ Ϯ ϭϬϬϬн
^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚǇ^ŚĞƌŝĨĨ ϵ ϭ͕ϬϬϬͲϰ͕ϵϵϵ ϲ ϭϬϬϬн
ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϬ ϳϱϬ ϯ ϭϬϬϬн ^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚǇ^ƵƉĞƌŝŶƚĞŶĚĞŶƚŽĨ^ĐŚŽŽůƐ ϳ ϭϬϬϬн ^ĂŶDĂŶƵĞůĂŶĚŽĨDŝƐƐŝŽŶ/ŶĚŝĂŶƐ ϴ ϭϬϬϬн
ΎĐƚƵĂůĞŵƉůŽǇŵĞŶƚĨŝŐƵƌĞƐŶŽƚĂǀĂŝůĂďůĞ
^ŽƵƌĐĞ͗
ĐŽŶŽŵŝĐĞǀĞůŽƉŵĞŶƚĞƉĂƌƚŵĞŶƚ>ĂďŽƌDĂƌŬĞƚ/ŶĨŽƌŵĂƚŝŽŶ͕ŐĞŶĐǇtĞďƐŝƚĞƐĂŶĚŝƚǇΖƐŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘ 84 Packet Pg.
387

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
ƵƚŚŽƌŝǌĞĚWŽƐŝƚŝŽŶƐ,ŝƐƚŽƌǇ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
zĞĂƌ
ŶĚ tĂƚĞƌ&ƵŶĚ
^ĞǁĞƌdƌĞĂƚŵĞŶƚ
&ƵŶĚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ
&ƵŶĚ dŽƚĂů
ϮϬϭϯ ϭϳϯ͘ϱ ϴϮ͘Ϭ Ϭ͘Ϭ Ϯϱϱ͘ϱ
ϮϬϭϰ ϭϴϱ͘ϱ ϳϮ͘ϱ Ϭ͘Ϭ Ϯϱϴ͘Ϭ
ϮϬϭϱ ϭϴϯ͘ϱ ϳϰ͘ϱ Ϭ͘Ϭ Ϯϱϴ͘Ϭ
ϮϬϭϲ ϭϴϴ͘ϱ ϴϯ͘ϱ Ϭ͘Ϭ ϮϳϮ͘Ϭ
ϮϬϭϳ Ϯϭϲ͘ϴ ϳϬ͘ϯ ϭϯ͘Ϭ ϯϬϬ͘Ϭ
ϮϬϭϴ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ
ϮϬϭϵ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ
ϮϬϮϬ Ϯϭϱ͘Ϭ ϳϮ͘Ϭ ϭϮ͘Ϭ Ϯϵϵ͘Ϭ
ϮϬϮϭ ϭϵϵ͘Ϭ ϴϱ͘Ϭ ϭϮ͘Ϭ Ϯϵϲ͘Ϭ
ϮϬϮϮ ϭϵϵ͘Ϭ ϴϰ͘ϱ ϭϮ͘Ϭ Ϯϵϱ͘ϱ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
EŽƚĞ͗dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳ͘WƌŝŽƌ ǇĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘
Ϭ͘Ϭ
ϱϬ͘Ϭ
ϭϬϬ͘Ϭ
ϭϱϬ͘Ϭ
ϮϬϬ͘Ϭ
ϮϱϬ͘Ϭ
ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ
ƵƚŚŽƌŝǌĞĚWŽƐŝƚŝŽŶ,ŝƐƚŽƌǇ
tĂƚĞƌ&ƵŶĚ ^ĞǁĞƌdƌĞĂƚŵĞŶƚ&ƵŶĚ ^ĞǁĞƌŽůůĞĐƚŝŽŶ&ƵŶĚ
85 Packet Pg.
388

7+,63$*(,17(17,21$//</()7%/$1.
86 Packet Pg.
389

Z
s
Eh
W/dz
dŚĞƐĞƐĐŚĞĚƵůĞƐĐŽŶƚĂŝŶŝŶĨŽƌŵĂƚŝŽŶƚŽŚĞůƉƚŚĞƌĞĂĚĞƌĂƐƐĞƐƐ ƚŚĞĞƉĂƌƚŵĞŶƚΖƐƐŝŐŶŝĨŝĐĂŶƚƌĞǀĞŶƵĞƐŽƵƌĐĞƐ͘

87 Packet Pg.
390

7+,63$*(,17(17,21$//</()7%/$1.
88 Packet Pg.
391

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌZĂƚĞƐ͗DŝŶŝŵƵŵDŽŶƚŚůǇŚĂƌŐĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ

ĨĨĞĐƚŝǀĞ
ĂƚĞ ϭͬϮΗ ϱͬϴΗ ϯͬϰΗ ϭΗ ϭͲϭͬϮΗ ϮΗ ϯΗ ϰΗ ϲΗ ϴΗ ϭϬΗ ϭϮΗ
ϳͬϭͬϮϬϭϯ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳ ϱϬ͘ϲϱ Ύ ϳͬϭͬϮϬϭϰ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳ ϱϬ͘ϲϱ Ύ ϳͬϭͬϮϬϭϱ ϭϮ͘ϵϬ ϭϮ͘ϵϬ ϭϲ͘ϭϱ ϮϮ͘ϲϬ ϯϴ͘ϴϬ ϱϴ͘ϮϬ ϭϬϯ͘ϱϬ ϭϲϴ͘ϮϬ ϯϯϬ͘ϬϬ ϱϮϰ͘ϭϱ ϳ ϱϬ͘ϲϱ Ύ ϭϬͬϭͬϮϬϭϲ ϭϲ͘Ϭϵ ϭϲ͘Ϭϵ ϮϬ͘ϭϱ Ϯϴ͘ϭϵ ϰϴ͘ϰϬ ϳϮ͘ϲϬ ϭϮϵ͘ϭϮ ϭϵϳ͘ϯϲ ϰϭϭ͘ϲϴ ϲϱϯ͘ϴϴ ϵϯϲ͘ϰϰ Ύ ϳͬϭͬϮϬϭϳ ϭϵ͘ϱϴ ϭϵ͘ϱϴ Ϯϰ͘ϱϭ ϯϰ͘ϯϬ ϱϴ͘ϴϴ ϴϴ͘ϯϮ ϭϱϳ͘Ϭϲ ϮϰϬ͘Ϭϳ ϱϬϬ͘ϳϴ ϳϵϱ͘ϰϬ ϭ ͕ϭϯϵ͘ϭϮ Ύ ϳͬϭͬϮϬϭϴ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϭϵ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϮϬ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϳͬϭͬϮϬϮϭ Ϯϯ͘ϯϵ Ϯϯ͘ϯϵ Ϯϵ͘Ϯϴ ϰϬ͘ϵϴ ϳϬ͘ϯϱ ϭϬϱ͘ϱϮ ϭϴϳ͘ϲϲ Ϯϴϲ͘ϲϯ ϱϵϴ͘ϯϯ ϵϱϬ͘ϯϰ ϭ͕ϯϲϭ͘Ϭϭ Ύ ϰͬϭͬϮϬϮϮ ϮϬ͘ϰϵ ϮϬ͘ϰϵ Ϯϴ͘ϭϳ ϰϯ͘ϱϭ ϴϭ͘ϴϳ ϭϮϳ͘ϵϭ ϯϴϴ͘ϳϳ ϳϳϮ͘ϯϴ ϭ͕ϮϯϮ͘ϳϮ Ϯ͕ϭϱ ϯ͘ϰϬ ϰ͕ϮϮϰ͘ϵϮ ϰ͕ϮϮϰ͘ϵϮ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐZĞĐŽƌĚƐ
;ΨͬŵŽŶƚŚͿ
Ύ/ŶĨŽƌŵĂƚŝŽŶŶŽƚƌĞƉŽƌƚĞĚ͘
89 Packet Pg.
392

DƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌZĂƚĞƐ͗ŽŵŵŽĚŝƚǇŚĂƌŐĞƐ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ƵƐƚŽŵĞƌůĂƐƐ
^ŝŶŐůĞ&ĂŵŝůǇZĞƐŝĚĞŶƚŝĂů
dŝĞƌϭ;ϬͲϭϯ,&Ϳ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ dŝĞƌϮ;ϭϰͲϮϯ,&Ϳ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ dŝĞƌϯ;Ϯϰн,&Ϳ ϭ͘ϳϬ ϭ͘ϳϬ ϭ͘ϳϬ ϭ͘ϴϲ ϭ͘ϴϵ ϭ͘ϵϮ ϭ͘ϵϮ DƵůƚŝͲ&ĂŝŵůǇZĞƐŝĚĞŶƚŝĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ ŽŵŵĞƌĐŝĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ /ƌƌŝŐĂƚŝŽŶ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ /ŶƐƚŝƚƵƚŝŽŶĂů ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ KƚŚĞƌ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϯϳ ϭ͘ϰϬ ϭ͘ϰϯ ϭ͘ϰϯ ΎWƌŝŽƌǇĞĂƌƐ;ϬϳͬϬϭͬϭϯͲϬϳͬϬϭͬϮϭͿĐŽŵŵŽĚŝƚǇĐŚĂƌŐĞƐƌĞĨůĞĐƚƌĂƚĞƐŝŶĐůƵĚŝŶŐĐŽŶƐĞƌǀĂƚŝŽŶ͕ƌĞƉůĞŶŝƐŚŵĞŶƚĂŶĚ ǁŚŝĐŚǁĞƌĞĐŽŶƐŽůŝĚĂƚĞĚǁŝƚŚƚŚĞƌĂƚĞƐĂĚŽƉƚĞĚŽŶϬϰͬϬϭͬϮϮ͘ 90 Packet Pg.
393

DƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌZĂƚĞƐ͗ŽŵŵŽĚŝƚǇŚĂƌŐĞƐ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮ
ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϯϱ
ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϴϯ
ϭ͘ϵϮ ϭ͘ϵϮ Ϯ͘ϯϯ
ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϱϭ
ϭ͘ϰϯ ϭ͘ϰϯ ϭ͘ϲϱ
ϭ͘ϰϯ ϭ͘ϰϯ Ϯ͘ϯϮ
ϭ͘ϰϯ ϭ͘ϰϯ Ϯ͘Ϭϯ
ϭ͘ϰϯ ϭ͘ϰϯ ϯ͘ϴϮ
ĚĞůĞǀĂƚŝŽŶǌŽŶĞĐŚĂƌŐĞƐ
91 Packet Pg.
394

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌZĂƚĞƐ͗
ůĞǀĂƚŝŽŶŚĂƌŐĞƐΨƉĞƌ,&
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ

ĨĨĞĐƚŝǀĞĂƚĞ ŽŶĞϭ ŽŶĞϮ ŽŶĞϯ ŽŶĞϰ ŽŶĞϱ ŽŶĞϲ ϬϳͬϬϭͬϭϯ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϭϰ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϭϱ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϭϬͬϬϭͬϭϲ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϭϳ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϭϴ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϭϵ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϮϬ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϬϳͬϬϭͬϮϭ Ϭ͘ϭϭ Ϭ͘ϭϵ Ϭ͘ϭϳ Ϭ͘ϭϰ Ϭ͘Ϯϯ Ϭ͘Ϯϯ
ϰͬϭͬϮϬϮϮΎ Eͬ Eͬ Eͬ Eͬ Eͬ Eͬ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
Ύ
ůĞǀĂƚŝŽŶĐŚĂƌŐĞǁĂƐĞůŝŵŝŶĂƚĞĚŝŶǁŝƚŚƚŚĞƌĂƚĞĂĚŽƉƚŝŽŶŽŶϬϰͬϬϭͬϮϮ͘ 92 Packet Pg.
395

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
tĂƚĞƌŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞƐďǇhƐĞƌdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
hƐĞƌdǇƉĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ŝŶŐůĞĨĂŵŝůǇ ϯϱ͕ϳϰϰ Ϯϯ͕ϳϲϭ͕ϭϰϱΨ ϯϱ͕ϵϵϱ Ϯϯ͕ϴϳϱ͕ϳϲϭΨ ϯϲ͕ϬϰϮ ϮϮ͕ϵϬϵ͕ϬϱϰΨ ϯϲ͕ϬϬϲ Ϯϭ͕ϱϳϵ͕ϲϵϯΨ DƵůƚŝƉůĞĨĂŵŝůǇ Ϯ͕ϵϬϱ ϱ͕ϱϲϮ͕ϬϭϮ Ϯ͕ϵϬϴ ϱ͕ϱϲϵ͕ϰϯϲ Ϯ͕ϵϬϳ ϱ͕ϮϮϮ͕ϯϰϱ Ϯ͕ϵϬϯ ϱ͕ϭϱϳ͕ϵϵϳ ŽŵŵĞƌĐŝĂů ϯ͕ϭϱϭ ϲ͕ϵϳϲ͕ϴϵϯ ϯ͕ϭϱϰ ϲ͕ϱϳϵ͕ϯϳϯ ϯ͕ϭϭϳ ϲ͕ϰϴϮ͕ϱϲϬ ϯ͕ϭϬϰ ϲ͕ϯϮϬ͕ϵϬϬ >ĂŶĚƐĐĂƉĞ ϭ͕ϭϴϰ ϱ͕ϱϭϱ͕Ϭϰϲ ϭ͕ϭϵϮ ϱ͕Ϯϳϳ͕ϭϭϰ ϭ͕ϭϴϭ ϰ͕ϱϰϮ͕ϭϬϴ ϭ͕ϭϱϬ ϰ͕Ϯϱϲ͕ϯϵϬ KƚŚĞƌ Ϯ͕Ϯϵϲ ϴϭϭ͕Ϯϭϵ Ϯ͕Ϯϰϭ ϴϭϭ͕ϴϯϯ Ϯ͕ϭϳϰ ϳϴϭ͕ϰϮϴ Ϯ͕Ϭϱϲ ϴϬϴ͕ϮϮϳ dŽƚĂůĂůůƵƐĞƌƐ ϰϱ͕ϮϴϬ ϰϮ͕ϲϮϲ͕ϯϭϱ Ψ ϰϱ͕ϰϵϬ ϰϮ͕ϭϭϯ͕ϱϭϳ Ψ ϰϱ͕ϰϮϭ ϯϵ͕ϵϯϳ͕ϰϵϱ Ψ ϰϱ͕ϮϮϬ ϯϴ͕ϭϮϯ͕ϮϬϳ Ψ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽ ŶƐ ZĞǀĞŶƵĞ ^ŝŶŐůĞĨĂŵŝůǇ ϯϱ͕ϴϮϰ ϮϬ͕ϰϳϲ͕ϴϲϲΨ ϯϱ͕ϴϮϱ ϭϳ͕ϯϰϲ͕ϰϭϰΨ ϯϱ͕ϳϮϵ ϭϱ͕ϲϴϴ͕ϳϰϵΨ ϯϱ͕ϲϵϱ ϭϲ͕ϳϳϱ͕ϴϯϰ Ψ DƵůƚŝƉůĞĨĂŵŝůǇ Ϯ͕ϵϬϰ ϰ͕ϵϰϰ͕ϵϳϴ Ϯ͕ϴϵϵ ϰ͕ϰϰϵ͕ϮϬϰ Ϯ͕ϴϳϯ ϰ͕ϮϮϱ͕ϴϯϮ Ϯ͕ϴϲϵ ϰ͕ϯϰϵ͕ϲϬϭ ŽŵŵĞƌĐŝĂů ϯ͕ϭϭϭ ϲ͕ϭϭϳ͕ϰϵϯ ϯ͕ϭϯϭ ϱ͕ϳϱϬ͕ϲϳϮ ϯ͕ϬϵϮ ϰ͕ϵϭϯ͕ϵϰϮ ϯ͕Ϭϵϳ ϲ͕ϯϯϮ͕ϴϴϮ >ĂŶĚƐĐĂƉĞ ϭ͕ϭϱϵ ϰ͕ϲϵϰ͕ϳϬϰ ϭ͕ϭϮϭ ϯ͕ϳϴϵ͕ϱϮϳ ϭ͕ϭϮϵ ϯ͕ϮϬϯ͕ϵϬϳ ϭ͕ϭϯϬ ϯ͕Ϭϳϵ͕ϲϭϬ KƚŚĞƌ Ϯ͕Ϭϭϴ ϳϰϴ͕ϭϰϭ ϭ͕ϵϱϲ ϱϱϳ͕ϯϵϮ ϭ͕ϵϬϱ ϲϳϳ͕ϭϴϬ ϭ͕ϳϵϭ ϲϳϵ͕ϲϬϲ dŽƚĂůĂůůƵƐĞƌƐ ϰϱ͕Ϭϭϲ ϯϲ͕ϵϴϮ͕ϭϴϮ Ψ ϰϰ͕ϵϯϮ ϯϭ͕ϴϵϯ͕ϮϬϵ Ψ ϰϰ͕ϳϮϴ Ϯϴ͕ϳϬϵ͕ϲϭϬ Ψ ϰϰ͕ϱϴϮ ϯϭ͕Ϯϭϳ͕ϱϯϯ Ψ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ
^ŝŶŐůĞĨĂŵŝůǇ ϯϱ͕ϬϭϮ ϭϴ͕ϱϴϯ͕ϳϬϴ Ψ ϯϰ͕ϵϭϯ ϭϴ͕ϳϰϭ͕ϳϳϯ Ψ DƵůƚŝƉůĞĨĂŵŝůǇ Ϯ͕ϴϮϰ ϰ͕ϱϵϭ͕ϮϵϬ Ϯ͕ϴϮϬ ϰ͕ϳϬϰ͕ϯϴϰ
ŽŵŵĞƌĐŝĂů ϯ͕Ϭϴϱ ϲ͕ϱϲϲ͕ϯϰϰ ϯ͕ϬϴϮ ϲ͕ϴϬϬ͕ϯϭϬ
>ĂŶĚƐĐĂƉĞ ϭ͕ϭϰϬ ϯ͕ϲϭϲ͕ϭϯϱ ϭ͕ϭϬϰ ϯ͕ϱϵϭ͕ϲϳϴ
KƚŚĞƌ ϭ͕ϳϬϯ ϵϭϯ͕ϴϭϬ ϭ͕ϲϲϯ ϱϵϵ͕ϮϭϬ
dŽƚĂůĂůůƵƐĞƌƐ ϰϯ͕ϳϲϰ ϯϰ͕Ϯϳϭ͕Ϯϴϳ Ψ ϰϯ͕ϱϴϮ ϯϰ͕ϰϯϳ͕ϯϱϱ Ψ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
ϮϬϭϵ
ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ
ϮϬϭϰ ϮϬϭϯ
ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ
ϱϲй
ϭϯй
ϭϲй
ϭϯй
Ϯй
tĂƚĞƌ^ĞƌǀŝĐĞZĞǀĞŶƵĞďǇhƐĞƌdǇƉĞ
&zϮϬϮϮ
^ŝŶŐůĞĨĂŵŝůǇ
DƵůƚŝƉůĞĨĂŵŝůǇ
ŽŵŵĞƌĐŝĂů
>ĂŶĚƐĐĂƉĞ
KƚŚĞƌ
ϯϱ͕ϳϰϰ
Ϯ͕ϵϬϱ
ϯ͕ϭϱϭ
ϭ͕ϭϴϰ Ϯ͕Ϯϵϲ
tĂƚĞƌhƚŝůŝƚǇ͗ǀĞƌĂŐĞηŽĨ
ŽŶŶĞĐƚŝŽŶƐƉĞƌƵƐƚŽŵĞƌdǇƉĞ
&zϮϬϮϮ
^ŝŶŐůĞĨĂŵŝůǇ
DƵůƚŝƉůĞĨĂŵŝůǇ
ŽŵŵĞƌĐŝĂů
>ĂŶĚƐĐĂƉĞ
KƚŚĞƌ
93 Packet Pg.
396

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
dŽƉdĞŶtĂƚĞƌƵƐƚŽŵĞƌƐ
&ŝƐĐĂůzĞĂƌϮϬϮϮ
ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭ͕ϮϮϳ͕ϱϴϯ Ψ
^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚǇhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƚƌŝĐƚ ϵϲϴ͕ϭϯϵ ĂůŝĨŽƌŶŝĂ^ƚĂƚĞhŶŝǀĞƌƐŝƚǇ ϰϵϰ͕ϴϴϵ ŽƵŶƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ Ϯϴϭ͕Ϭϭϯ
,ŽƵƐŝŶŐƵƚŚŽƌŝƚǇŽĨƚŚĞŽƵŶƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ Ϯϯϭ͕ϱϳϮ ŽƚƚĞǀĞƌĂŐĞƐ ϭϴϮ͕ϵϱϮ
t͘ĞĂŶtĞŝĚŶĞƌ ϭϲϲ͕ϮϮϵ
ZŝĂůƚŽ^ĐŚŽŽůŝƐƚƌŝĐƚ ϭϰϱ͕ϳϵϮ
>ŝĚŽŽŶĚŽŵŝŶŝƵŵƐ ϭϯϰ͕Ϯϭϱ
WDDĂŶĂŐĞŵĞŶƚŽŵƉĂŶǇ ϭϯϬ͕ϵϲϳ
dŽƉdĞŶƵƐƚŽŵĞƌƐdŽƚĂů ϯ͕ϵϲϯ͕ϯϱϭ Ψ
dŽƚĂůtĂƚĞƌZĞǀĞŶƵĞ ϰϮ͕ϲϮϲ͕ϯϭϱ Ψ

dŽƉdĞŶƵƐƚŽŵĞƌƐWĞƌĐĞŶƚŽĨdŽƚĂů ϵ͘ϯϬй
ϮϬϮϮdŽƉϭϬƵƐƚŽŵĞƌƐ
94 Packet Pg.
397

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌdƌĞĂƚŵĞŶƚZĂƚĞ,ŝƐƚŽƌǇ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬ ϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮΎ ZĞƐŝĚĞŶƚŝĂů;ŵŽŶƚŚůǇƉĞƌ
hͿ
ZĞƐŝĚĞŶƚŝĂů ϭϴ͘ϱϬ ϭϴ͘ϱϬ ϮϬ͘ϲϱ ϮϮ͘ϯϴ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ Ϯϯ͘ϭϬ ϯϳ͘ϴϯ DƵůƚŝͲ&ĂŵŝůǇ;ϮƵŶŝƚƐͿ ϯϳ͘ϬϬ ϯϳ͘ϬϬ ϰϭ͘ϯϭ ϰϰ͘ϳϲ ϰϲ͘ϮϬ ǭ ϲϲ͘Ϭϱ ϲϲ͘Ϭϱ ϲϲ͘Ϭϱ ϳϱ͘ϲϲ DƵůƚŝͲĨĂŵŝůǇ;ϯƵŶŝƚƐͿ ϱϱ͘ϱϬ ϱϱ͘ϱϬ ϲϭ͘ϵϲ ϲϳ͘ϭϰ ϲϵ͘Ϯϵ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϵϵ͘Ϭϰ ϭϭϯ͘ϰϵ ůůEŽŶͲZĞƐŝĚĞŶƚŝĂů;ŝŶĐůƵĚŝŶŐŵƵůƚŝͲĨĂŵŝůǇ;ϰŽƌ
ŵŽƌĞƵŶŝƚƐͿĂŶĚŵŽďŝůĞŚŽŵĞƉĂƌŬƐͿ Ϯ͘ϰϬ Ϯ͘ϰϬ ϯ͘ϭϴ ϯ͘ϰϮ ϯ͘ϱϮ ϲ͘ϲϮ ϲ͘ϲϮ ϲ͘ϲϮ ϲ͘ϲϮ ϭϲ͘ϱϲ /ŶĚƵƐƚƌŝĂů ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϲϳ ϭ͘ϳϴ ϭ͘ϴϯ ϰ͘ϵϯ ϰ͘ϵϯ ϰ͘ϵϯ ϰ͘ϵϯ ϭϲ͘ϱϲ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
95 Packet Pg.
398

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌdƌĞĂƚŵĞŶƚZĂƚĞ,ŝƐƚŽƌǇ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
ϭͬϭͬϮϬϭϯ ϭͬϭͬϮϬϭϰ ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬ ϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬϮϮΎ ŽŵŵŽĚŝƚǇŚĂƌŐĞ;ƉĞƌ,&Ϳ͗
>Žǁ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů
>ĂƵŶĚƌŽŵĂƚƐ ϭ͘ϱϬ ϭ͘ϱϬ ϭ͘ϲϯ ϭ͘ϳϳ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ Ϯ͘ϭϱ ^ĐŚŽŽůƐ͕ĐŚƵƌĐŚĞƐ͕ŶƵƌƐĞƌǇƐĐŚŽŽůƐ ϭ͘ϭϬ ϭ͘ϭϬ ϭ͘ϭϵ ϭ͘Ϯϵ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ ϭ͘ϯϯ Ϯ͘ϭϱ DĞĚŝƵŵ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů
DƵůƚŝͲĨĂŵŝůǇ͕ŵŽďŝůĞŚŽŵĞƉĂƌŬƐ ϭ͘Ϯϱ ϭ͘Ϯϱ ϭ͘ϯϲ ϭ͘ϰϴ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ ϭ͘ϱϯ Ϯ͘ϳϭ ZĞƚĂŝů͕ĐŽŵŵĞƌĐŝĂů͕ůŝŐŚƚŝŶĚƵƐƚƌŝĂů Ϯ͘ϭϬ Ϯ͘ϭϬ Ϯ͘Ϯϴ Ϯ͘ϰϳ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϱϱ Ϯ͘ϳϭ ƵƚŽƌĞƉĂŝƌ͕ĐĂƌǁĂƐŚ ϭ͘ϯϬ ϭ͘ϯϬ ϭ͘ϰϭ ϭ͘ϱϯ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ ϭ͘ϱϴ Ϯ͘ϳϭ KĨĨŝĐĞƐ͕ŵŽƚĞůƐ;ǁͬŽƌĞƐƚĂƵƌĂŶƚƐͿ ϭ͘ϱϬ ϭ͘ϱϬ ϭ͘ϲϯ ϭ͘ϳϳ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ ϭ͘ϴϯ Ϯ͘ϳϭ ,ŽƐƉŝƚĂůƐ͕ĐŽŶǀĂůĞƐĐĞŶƚŚŽŵĞƐ ϭ͘ϯϱ ϭ͘ϯϱ ϭ͘ϰϲ ϭ͘ϱϴ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ ϭ͘ϲϯ Ϯ͘ϳϭ ,ŝŐŚ^ƚƌĞŶŐƚŚEŽŶͲZĞƐŝĚŝĞŶƚŝĂů
ZĞƐƚĂƵƌĂŶƚƐ͕ŚŽƚĞůƐ Ϯ͘ϳϬ Ϯ͘ϳϬ Ϯ͘ϵϯ ϯ͘ϭϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϯ͘Ϯϴ ϲ͘ϰϮ ŽŵĞĐƐƚŝĐ>ŝƋƵŝĚtĂƐƚĞ;ƉĞƌŐĂůůŽŶͿ Ϭ͘ϬϰϬϬ Ϭ͘ϬϰϬϬ Ϭ͘ϬϰϯϬ Ϭ͘ϬϰϳϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘ϬϰϵϬ Ϭ͘Ϭϳϭϰ /ŶĚƵƐƚƌŝĂů͗
ŝƐĐŚĂƌŐĞ&ůŽǁ;ƉĞƌŵŝůůŝŽŶŐĂůůŽŶƐͿ ϵϬϬ͘ϬϬ ϵϬϬ͘ϬϬ ϵϳϳ͘ϬϬ ϭ͕ϬϲϬ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ͘ϬϬ ϭ͕Ϭϵϰ ͘ϬϬ ϭ͕ϰϮϬ͘ϴϯ ŝŽůŽŐŝĐĂůKǆǇŐĞŶĚĞŵĂŶĚ;ƉĞƌϭ͕ϬϬϬůďƐͿ ϯϲϬ͘ϬϬ ϯϲϬ͘ϬϬ ϯϵϭ͘ϬϬ ϰϮϰ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϰϯϴ͘ϬϬ ϲϰϴ͘Ϯϴ ^ƵƐƉĞŶĚĞĚ^ŽůŝĚƐ;ƉĞƌϭ͕ϬϬϬůďƐͿ ϲϰϬ͘ϬϬ ϲϰϬ͘ϬϬ ϲϵϰ͘ϬϬ ϳϱϯ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϳϳϴ͘ϬϬ ϲϰϴ͘ϱϬ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
96 Packet Pg.
399

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌdƌĞĂƚŵĞŶƚŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞďǇhƐĞƌdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
hƐĞƌdǇƉĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϯ͕ϮϯϬ Ψϭϰ͕ϯϱϵ͕ϰϭϱ ϯϮ͕ϯϲϱ ΨϭϬ͕ϭϲϱ͕ϳϲϱ ϯϭ͕ϴϮϴ ΨϭϬ͕ϭϵϭ͕ϰϴϮ ϯϯ͕Ϭϱϭ ΨϭϬ͕ϭϰ ϲ͕ϲϲϬ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϱϲϲ ϳ͕Ϯϳϵ͕Ϯϭϱ ϱ͕ϰϯϲ ϴ͕ϮϵϮ͕ϴϳϰ ϱ͕ϯϰϬ ϴ͕ϰϲϯ͕ϱϱϰ ϱ͕ϱϯϭ ϴ͕ϲϰϱ͕ϬϯϮ

ĂƐƚsĂůůĞǇZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϲϯϲ ϱ͕Ϭϭϭ͕Ϯϭϱ ϭϴ͕ϳϭϬ ϰ͕ϳϵϳ͕ϴϯϯ ϭϴ͕ϰϳϳ ϰ͕ϳϳϴ͕ϭϱϮ ϭϴ͕ϰϳϳ ϰ͕ϳϳϴ͕ϭϱϮ

ĂƐƚsĂůůĞǇEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϭϬϲ ϯ͕ϴϬϱ͕ϱϱϴ ϭ͕Ϭϴϳ ϯ͕ϰϱϲ͕ϴϮϳ ϭ͕ϬϱϬ ϯ͕ϰϴϯ͕ϳϮϰ ϭ͕ϬϱϬ ϯ͕ϱϱϬ͕ϵϳϯ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϯ͕Ϭϯϵ ϭ͕Ϯϭϵ͕Ϭϯϰ ϯ͕ϬϭϬ ϭ͕ϮϯϮ͕Ϭϰϴ Ϯ͕ϴϱϲ ϭ͕ϭϲϯ͕ϱϬϭ Ϯ͕ϳϵϵ ϭ͕ϭϳϭ͕ϳϬϲ >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϭϲϵ ϭ͕ϲϳϯ͕ϰϰϱ ϭϲϵ ϭ͕ϲϰϮ͕ϮϱϬ ϭϲϴ ϭ͕ϲϮϮ͕ϴϳϮ ϯϰϱ ϭ͕ϱϱϳ͕ϭϭϵ dŽƚĂůĂůůƵƐĞƌƐ ϲϭ͕ϳϰϲ Ψϯϯ͕ϯϰϳ͕ϴϴϮ ϲϬ͕ϳϳϳ ΨϮϵ͕ϱϴϳ͕ϱϵϲ ϱϵ͕ϳϭϵ ΨϮϵ͕ϳϬϯ͕ Ϯϴϰ ϲϭ͕Ϯϱϯ ΨϮϵ͕ϴϰϵ͕ϲϰϯ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽ ŶƐ ZĞǀĞŶƵĞ ^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϮ͕ϵϰϱ ΨϭϬ͕ϭϯϱ͕ϭϯϮ ϯϮ͕ϵϲϬ Ψϵ͕ϳϱϲ͕ϱϵϮ ϯϮ͕ϴϴϵ Ψϴ͕ϳϰϲ͕ϲϭϳ ϯϮ͕ϴϳϰ Ψϴ͕Ϭϱϲ͕ϴ Ϯϳ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϱϮϲ ϴ͕ϴϯϰ͕ϲϰϭ ϱ͕ϰϳϭ ϴ͕ϬϭϬ͕ϮϰϬ ϱ͕ϯϳϳ ϳ ͕ϭϮϱ͕Ϭϱϯ ϱ͕ϯϰϰ ϳ͕ϮϰϬ͕ϱϯϯ

ĂƐƚsĂůůĞǇZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϰϳϳ ϰ͕ϳϲϱ͕Ϯϭϴ ϭϴ͕ϰϳϳ ϰ͕ϲϮϮ͕ϵϰϰ ϭϴ͕ϰϳϳ ϰ͕ϬϬϴ͕Ϭϯϵ ϭϴ͕ϰϴϬ ϰ͕Ϭϵϯ͕ϲϮϱ

ĂƐƚsĂůůĞǇEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϬϱϬ ϯ͕ϱϳϵ͕ϯϰϴ ϭ͕ϬϱϬ ϯ͕Ϭϴϯ͕ϰϳϱ ϭ͕ϬϲϬ Ϯ͕ϴϮϱ͕ϵϳϭ ϭ͕Ϭϱϭ Ϯ͕ϱϳϭ͕ϴϭϯ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϰ͕ϴϮϰ ϭ͕ϭϲϳ͕ϴϮϯ ϰ͕ϳϮϯ ϭ͕ϭϬϳ͕ϮϬϭ ϱ͕ϵϰϴ ϭ͕ϬϬϴ͕Ϭϳϭ ϱ͕ϬϰϬ ϵϵϳ͕ϮϰϮ >ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϳϬϯ ϭ͕ϱϰϴ͕ϱϳϰ ϱϵϯ ϭ͕ϰϰϭ͕ϴϬϳ ϱϵϭ ϭ͕ϯϬϴ͕ϰϳϰ ϱϴϴ ϭ͕Ϯϵϰ͕ϲϭϮ dŽƚĂůĂůůƵƐĞƌƐ ϲϯ͕ϱϮϱ ΨϯϬ͕ϬϯϬ͕ϳϯϳ ϲϯ͕Ϯϳϰ ΨϮϴ͕ϬϮϮ͕Ϯϱϵ ϲϰ͕ϯϰϮ ΨϮϱ͕ϬϮϮ͕ ϮϮϱ ϲϯ͕ϯϳϳ ΨϮϰ͕Ϯϱϰ͕ϲϱϭ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ZĞǀĞŶƵĞ
^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů ϯϮ͕ϱϯϳ Ψϴ͕ϭϭϭ͕ϲϯϰ ϯϮ͕ϱϲϯ Ψϳ͕ϵϮϮ͕ϵϯϲ ^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů ϱ͕ϰϭϬ ϴ͕Ϭϯϯ͕ϬϳϮ ϱ͕ϰϰϳ ϴ͕ϯϯϮ͕Ϯϭϰ

ĂƐƚsĂůůĞǇZĞƐŝĚĞŶƚŝĂů ϭϴ͕ϰϬϰ ϰ͕ϭϰϵ͕ϴϯϲ ϭϴ͕ϵϮϱ ϰ͕ϭϴϴ͕ϰϯϰ

ĂƐƚsĂůůĞǇEŽŶƌĞƐŝĚĞŶƚŝĂů ϭ͕ϭϭϱ Ϯ͕ϳϮϱ͕Ϭϳϱ ϭ͕ϭϮϲ Ϯ͕ϰϯϰ͕ϭϭϴ >ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů ϰ͕ϲϱϲ ϵϵϭ͕ϯϴϳ ϰ͕ϲϲϯ ϭ͕Ϭϲϯ͕ϭϮϰ
>ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů ϱϵϮ ϭ͕ϯϯϬ͕ϭϬϮ ϱϴϱ ϭ͕ϱϰϵ͕ϲϰϯ
dŽƚĂůĂůůƵƐĞƌƐ ϲϮ͕ϳϭϰ ΨϮϱ͕ϯϰϭ͕ϭϬϲ ϲϯ͕ϯϬϵ ΨϮϱ͕ϰϵϬ͕ϰϲϵ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
ϮϬϭϰ ϮϬϭϯ
ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ ϮϬϭϵ
ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ
ϯϯ͕ϮϯϬ
ϱ͕ϱϲϲ
ϭϴ͕ϲϯϲ
ϭ͕ϭϬϲ
ϯ͕Ϭϯϵ
ϭϲϵ
^ĞǁĞƌhƚŝůŝƚǇ͗ǀĞƌĂŐĞηŽĨŽŶŶĞĐƚŝŽŶƐƉĞƌ
ƵƐƚŽŵĞƌdǇƉĞ&zϮϬϮϮ
^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů
^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů

ĂƐƚsĂůůĞǇZĞƐŝĚĞŶƚŝĂů

ĂƐƚsĂůůĞǇEŽŶƌĞƐŝĚĞŶƚŝĂů
>ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů
>ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů
ϰϯй
ϮϮй
ϭϱй
ϭϭй
ϰй ϱй
^ĞǁĞƌhƚŝůŝƚǇZĞǀĞŶƵĞďǇhƐĞƌdǇƉĞ
&zϮϬϮϮ
^ĂŶĞƌŶĂƌĚŝŶŽZĞƐŝĚĞŶƚŝĂů
^ĂŶĞƌŶĂƌĚŝŶŽEŽŶƌĞƐŝĚĞŶƚŝĂů

ĂƐƚsĂůůĞǇZĞƐŝĚĞŶƚŝĂů

ĂƐƚsĂůůĞǇEŽŶƌĞƐŝĚĞŶƚŝĂů
>ŽŵĂ>ŝŶĚĂZĞƐŝĚĞŶƚŝĂů
>ŽŵĂ>ŝŶĚĂEŽŶƌĞƐŝĚĞŶƚŝĂů
97 Packet Pg.
400

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
dŽƉdĞŶ^ĞǁĞƌdƌĞĂƚŵĞŶƚƵƐƚŽŵĞƌƐ
&ŝƐĐĂůzĞĂƌϮϬϮϮ
ŽƵŶƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϰϯϭ͕ϴϱϭ Ψ
^ĂŶĞƌŶĂƌĚŝŶŽŽƵŶƚǇhŶŝĨŝĞĚ^ĐŚŽŽůŝƐƚƌŝĐƚ Ϯϰϱ͕ϴϰϴ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚǇŽĨƚŚĞŽƵŶƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϮϵ͕ϴϭϯ ^ĂŝŶƚĞƌŶĂƌĚŝŶĞ,ŽƐƉŝƚĂů ϭϭϵ͕ϲϭϭ
WDDĂŶĂŐĞŵĞŶƚŽŵƉĂŶǇ ϭϭϳ͕ϰϳϰ
ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽ ϭϭϭ͕Ϯϵϯ
ƌŽĂĚƐƚŽŶĞ/ŶǀĞƐƚŽƌƐ>> ϵϭ͕ϵϯϴ
>ŝĚŽŽŶĚŽŵŝŶŝƵŵƐ ϴϵ͕ϳϰϲ
^ĂŶĞƌŶĂƌĚŝŶŽŽŵŵƵŶŝƚǇ,ŽƐƉŝƚĂů ϴϮ͕ϲϬϵ t͘ĞĂŶtĞŝĚŶĞƌ ϳϲ͕ϰϭϴ
dŽƉdĞŶƵƐƚŽŵĞƌƐdŽƚĂů ϭ͕ϰϵϲ͕ϲϬϭ Ψ
dŽƚĂů^ĞǁĞƌZĞǀĞŶƵĞ ϯϯ͕ϯϰϳ͕ϴϴϮ Ψ
dŽƉdĞŶƵƐƚŽŵĞƌƐWĞƌĐĞŶƚŽĨdŽƚĂů ϰ͘ϰϵй
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
ϮϬϮϮdŽƉϭϬƵƐƚŽŵĞƌƐ
98 Packet Pg.
401

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌŽůůĞĐƚŝŽŶZĂƚĞ,ŝƐƚŽƌǇ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
ϭϬͬϭͬϮϬϭϱ ϳͬϭͬϮϬϭϲ ϳͬϭͬϮϬϭϳ ϳͬϭͬϮϬϭϴ ϳͬϭͬϮϬϭϵ ϳͬϭͬϮϬϮϬ ϳͬϭͬϮϬϮϭ ϰͬϭͬϮϬ ϮϮΎ ZĞƐŝĚĞŶƚŝĂů;ŵŽŶƚŚůǇƉĞƌ
hͿ ϵ͘ϬϬ ϵ͘ϰϱ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ ϵ͘ϵϬ Eͬ
DƵůƚŝͲ&ĂŵŝůǇ
DƵůƚŝͲĨĂŵŝůǇ͕ϮƵŶŝƚƐ ϭϴ͘ϬϬ ϭϴ͘ϵϬ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ ϭϵ͘ϴϱ Eͬ DƵůƚŝͲĨĂŵŝůǇ͕ϯƵŶŝƚƐ Ϯϳ͘ϬϬ Ϯϴ͘ϯϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Ϯϵ͘ϳϱ Eͬ DƵůƚŝͲĨĂŵŝůǇ͕ϰŽƌŵŽƌĞƵŶŝƚƐ͕EŽŶͲƌĞƐ͘
DŽŶƚŚůǇŚĂƌŐĞ Ϯ͘ϴϬ Ϯ͘ϵϱ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ ϯ͘ϭϬ Eͬ hƐĂŐĞŚĂƌŐĞ;ƉĞƌ,&Ϳ Ϭ͘ϳϵ Ϭ͘ϴϯ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Ϭ͘ϴϳ Eͬ ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶƌĂƚĞǁĂƐĐŽŵďŝŶĞĚǁŝƚŚƚŚĞ^ĞǁĞƌdƌĞĂƚŵĞŶƚƌĂƚĞƚŽďĞĐŽŵĞƚŚĞƐĞǁĞƌƌĂƚĞƚŚĂƚǁĂƐĞĨĨĞĐƚŝǀĞϬϰͬϬϭͬϮϮ͘ ^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
dŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽĚĞƚĂŝůƐĨŽƌƉƌŝŽƌǇĞĂƌƐŝƐƵŶĂǀĂŝůĂďůĞ͘ 99 Packet Pg.
402

ŝƚǇŽĨ^ĂŶĞƌŶĂƌĚŝŶŽDƵŶŝĐŝƉĂůtĂƚĞƌĞƉĂƌƚŵĞŶƚ
^ĞǁĞƌŽůůĞĐƚŝŽŶ
ŽŶŶĞĐƚŝŽŶƐĂŶĚZĞǀĞŶƵĞďǇhƐĞƌdǇƉĞ
>ĂƐƚdĞŶ&ŝƐĐĂůzĞĂƌƐ
hƐĞƌdǇƉĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀ ĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůǇ Ϯϳ͕ϳϰϴ Ϭ Ψϯ͕Ϭϲϭ͕ϱϭϯ ϯϮ͕ϰϭϴ Ϭ Ψϯ͕ϵϵϳ͕ϱϭϯ ϯϭ͕ϴϴϵ Ψϰ͕Ϭϱϰ͕ϬϮϬ ϯϯ͕ϭϮϳ Ψϯ͕ϵϮϳ͕ϳϴϰ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇ ϭ͕ϯϰϱ Ϭ ϯϱϲ͕Ϭϱϭ ϭ͕ϱϳϲ Ϭ ϰϭϴ͕ϱϰϱ ϭ͕ϱϱϱ ϰϭϮ͕Ϭϵϱ ϭ͕ϲϬϲ ϰϮϰ͕ϲϲϱ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇϰhŶŝƚƐн ϭϴ ϳϴ͕ϰϵϰ ϲϴ͕ϵϳϱ ϭϵ ϴϬ͕ϰϬϬ ϳϬ͕ϲϰϳ ϭϴ ϲϯ͕ϱϮϵ ϱϱ͕ϵϮϭ ϭϳ ϱϬ͕ϯϯϭ ϰϰ͕ϰϮϬ Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘ Ϯ͕ϲϳϬ Ϯ͕ϱϵϰ͕ϲϰϬ Ϯ͕ϯϭϬ͕ϵϴϲ ϯ͕ϭϯϴ ϯ͕Ϭϱϭ͕ϭϳϳ Ϯ͕ϳϮϲ͕ϭϵϴ ϯ͕Ϭϲϵ Ϯ͕ϴϵϯ͕Ϭϭϴ Ϯ͕ϱ ϴϴ͕ϵϭϮ ϯ͕ϭϴϬ Ϯ͕ϵϬϰ͕Ϭϱϰ Ϯ͕ϲϬϭ͕ϴϬϰ

ĚƵĐĂƚŝŽŶͲWƵďůŝĐ ϰϯ ϭϮϳ͕Ϯϳϵ ϭϭϬ͕ϱϴϴ ϰϵ ϭϮϰ͕Ϭϰϳ ϭϬϵ͕ϮϬϱ ϯϳ ϱϰ͕ϮϬϳ ϰϴ͕ϬϴϮ Ϯϳ Ϯϰ͕Ϯϵϯ Ϯϭ͕ϳϬϬ

ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ϭϮϰ ϱϴ͕ϵϯϮ ϱϱ͕ϴϱϵ ϭϰϵ ϳϮ͕ϭϰϭ ϲϴ͕Ϭϴϲ ϭϱϬ ϲϯ͕ϳϭϱ ϲϬ͕ϵϰϭ ϭϱϮ ϲϰ͕ϲϰϯ ϲϭ͕ϴϱϴ ,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ Ϯϵ ϭϲϰ͕ϴϯϲ ϭϰϰ͕ϰϲϮ ϯϱ ϭϵϳ͕ϯϲϬ ϭϳϮ͕ϳϳϭ ϯϱ ϭϵϳ͕ϳϴϳ ϭϳϯ͕ϯϲϳ ϯϱ ϭϵϬ͕ϭϵϭ ϭϲϲ͕ϳϲϴ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ ϴϱ ϳϲ͕ϳϲϴ ϱϳ͕ϴϬϬ ϵϯ ϳϴ͕ϯϯϴ ϱϵ͕ϯϬϳ ϵϮ ϳϵ͕ϯϮϭ ϲϭ͕ϬϮϳ ϵϰ ϴϴ͕ϲϯϮ ϲϵ͕ϮϴϬ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ϱϭ ϰϯ͕ϱϴϳ ϯϵ͕ϲϯϮ ϱϭ ϯϲ͕ϭϴϭ ϯϯ͕ϮϯϮ ϱϮ ϯϴ͕ϳϲϮ ϯϱ͕ϰϴϬ ϰϳ ϰϭ͕ϱϴϯ ϯϳ͕ϳϱϬ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ ϭϵϳ ϳϴ͕Ϯϵϯ ϳϱ͕ϯϵϬ ϮϮϲ ϴϭ͕ϵϰϱ ϳϴ͕ϵϳϭ ϮϮϭ ϳϱ͕ϬϮϳ ϳϯ͕ϰϴϳ ϮϮϵ ϳϲ͕ϱϴϳ ϳϰ͕ϴϱϰ >ĂƵŶĚƌŽŵĂƚ ϰ Ϯϵ͕ϮϯϮ Ϯϱ͕ϱϴϳ ϱ Ϯϴ͕ϯϰϵ Ϯϰ͕ϴϰϯ ϱ Ϯϰ͕ϴϮϭ Ϯϭ͕ϳϳϭ ϱ Ϯϲ͕ϲϯϵ Ϯϯ͕ϯϲϮ ^/ƌƌŝŐĂƚŝŽŶ Ϭ Ϭ Ϭ Ϭ Ϭ Ϭ Ϯϭ Ϯϱϱ͕ϰϬϬ ϳϭ͕ϱϳϭ ϰϯ ϰϮϯ͕ϲϴϴ ϭϭϱ͕ϵϬϱ dŽƚĂůƐ/s ϰϵ ϲϮ͕ϯϰϬ Ϭ ϰϴ ϲϱ͕ϱϱϵ Ϭ ϰϴ ϱϲ͕ϬϳϮ Ϭ ϱϬ ϱϰ͕ϯϴϳ Ϭ dŽƚĂůĂůůƵƐĞƌƐ ϯϮ͕ϯϲϯ ϯ͕ϯϭϰ͕ϰϬϭ ϲ͕ϯϬϲ͕ϴϰϯΨ ϯϳ͕ϴϬϲ ϯ͕ϴϭϱ͕ϰϵϳ ϳ͕ϳϱϵ͕ϯϭϴ Ψ ϯϳ͕ϭϵϮ ϯ͕ϴϬϭ͕ϲϱϵ ϳ͕ϲϱϲ͕ϲϳϱ Ψ ϯϴ͕ϲϭϯ ϯ͕ϵϰϱ͕ϬϮϴ ϳ͕ϱϳϬ͕ϭϱϬΨ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞ ĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůǇ ϯϮ͕ϵϯϵ Ψϯ͕ϵϭϲ͕ϵϰϲ ϯϮ͕ϴϵϵ Ψϯ͕ϳϭϵ͕ϳϵϴ ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇ ϭ͕ϲϬϳ ϰϮϰ͕ϬϮϰ ϭ͕ϲϬϵ ϰϬϱ͕ϬϬϳ
ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇϰhŶŝƚƐн ϭϲ ϱϭ͕ϬϵϮ ϰϰ͕ϵϰϱ ϭϱ ϰϱ͕ϭϰϲ ϰϭ͕ϯϱϭ Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘ ϯ͕ϭϵϴ Ϯ͕ϵϵϳ͕ϰϮϮ Ϯ͕ϲϲϴ͕ϰϵϳ ϯ͕ϮϬϰ Ϯ͕ ϲϮϲ͕ϲϰϱ Ϯ͕ϰϲϳ͕ϰϳϬ

ĚƵĐĂƚŝŽŶͲWƵďůŝĐ Ϯϳ Ϯϵ͕ϰϳϴ Ϯϲ͕ϭϭϴ Ϯϳ Ϯϵ͕ϱϴϲ Ϯϳ͕ϰϮϬ

ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ ϭϱϬ ϳϮ͕ϵϯϲ ϲϳ͕ϵϴϱ ϭϱϬ ϲϭ͕ϯϴϭ ϲϭ͕ϳϳϵ
,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ ϯϱ ϭϵϰ͕ϱϲϬ ϭϳϬ͕Ϭϲϯ ϯϱ ϭϳϱ͕Ϯϰϭ ϭϲϭ͕ϭϴϮ KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ ϵϰ ϴϱ͕ϯϵϳ ϲϲ͕Ϭϭϱ ϵϲ ϳϭ͕ϬϵϮ ϱϴ͕ϱϴϳ ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ ϰϭ ϯϵ͕ϵϬϵ ϯϱ͕ϵϲϯ ϯϳ ϯϰ͕ϳϴϴ ϯϮ͕ϱϬϵ ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ Ϯϯϭ ϵϯ͕ϰϳϰ ϴϵ͕ϱϲϱ ϮϮϵ ϳϯ͕ϰϯϲ ϳϱ͕ϰϮϭ >ĂƵŶĚƌŽŵĂƚ ϱ Ϯϲ͕ϰϲϰ Ϯϯ͕ϭϲϬ ϱ Ϯϰ͕Ϭϵϭ Ϯϭ͕ϴϮϰ
^/ƌƌŝŐĂƚŝŽŶ ϰϱ ϱϰϬ͕ϰϰϰ ϭϰϱ͕ϳϯϳ ϰϲ ϱϬϯ͕ϳϴϬ ϭϱϴ͕ϴϯϰ
dŽƚĂůƐ/s ϰϵ ϱϳ͕Ϭϱϳ ϱϭ ϱϰ͕ϴϳϰ
dŽƚĂůĂůůƵƐĞƌƐ ϯϴ͕ϰϯϴ ϰ͕ϭϴϴ͕Ϯϯϯ ϳ͕ϲϳϵ͕ϬϮϬ Ψ ϯϴ͕ϰϬϮ ϯ͕ϳϬϬ͕ϬϲϬ ϳ͕Ϯϯϭ͕ϭϴϯ Ψ Ϭ Ϭ ΨϬ Ϭ ΨϬ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ŽŶŶĞĐƚŝŽŶƐ ŽŶƐƵŵƉƚŝŽŶ ZĞǀĞŶƵĞ ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůǇ
ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇ
ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇϰhŶŝƚƐн
Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘

ĚƵĐĂƚŝŽŶͲWƵďůŝĐ

ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ
,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ
KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ
ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ
ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ
>ĂƵŶĚƌŽŵĂƚ
^/ƌƌŝŐĂƚŝŽŶ
dŽƚĂůƐ/s
dŽƚĂůĂůůƵƐĞƌƐ Ϭ Ϭ ΨϬ Ϭ ΨϬ
^ŽƵƌĐĞ͗ĞƉĂƌƚŵĞŶƚΖƐƌĞĐŽƌĚƐ
ϮϬϭϰ ϮϬϭϯ
ΎdŚĞ^ĞǁĞƌŽůůĞĐƚŝŽŶhƚŝůŝƚǇǁĂƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚĞtĂƚĞƌĞƉĂƌƚŵĞŶƚŽŶDĂǇϭ͕ϮϬϭϳƐŽƉƌŝŽƌǇĞĂƌĚĂƚĂŝƐƵŶĂǀĂŝůĂďůĞ͘ĂƚĂƉƌŽǀŝĚĞĚĨŽƌϮϬϭϳƌĞƉƌĞƐĞŶƚƐƚŚĞĞŶƚŝƌĞ ǇĞĂƌ͘
ϮϬϮϮ ϮϬϮϭ ϮϬϮϬ ϮϬϭϵ
ϮϬϭϴ ϮϬϭϳ ϮϬϭϲ ϮϬϭϱ
ϴϲй
ϰй
Ϭй ϴй
Ϭй
ϭй
Ϭй
Ϭй
Ϭй
ϭй
Ϭй
Ϭй
Ϭй
^ĞǁĞƌŽůůĞĐƚŝŽŶŽŶŶĞĐƚŝŽŶƐďǇhƐĞƌdǇƉĞϮϬϮϮ
ZĞƐŝĚĞŶƚŝĂůͲ^ŝŶŐůĞ&ĂŵŝůǇ
ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇ
ZĞƐŝĚĞŶƚŝĂůͲDƵůƚŝ&ĂŵŝůǇϰhŶŝƚƐн
Žŵŵͬ>ĂŶĚͬ>ƚ͘/ŶĚƵƐƚƌŝĂůͬEŽŶͲZĞƐ͘

ĚƵĐĂƚŝŽŶͲWƵďůŝĐ

ĚƵĐĂƚŝŽŶͲWƌŝǀĂƚĞ
,ŽƐƉŝƚĂůͬŽŶǀĂůĞƐĐĞŶƚ,ŽŵĞƐ
KĨĨŝĐĞͬDŽƚĞůͲEŽZĞƐƚĂƵƌĂŶƚ
ZĞƐƚĂƵƌĂŶƚͬ,ŽƚĞůǁͬZĞƐƚĂƵƌĂŶƚ
ƵƚŽZĞƉĂŝƌͬĂƌtĂƐŚ
>ĂƵŶĚƌŽŵĂƚ
^/ƌƌŝŐĂƚŝŽŶ
dŽƚĂůƐ/s
100

Packet Pg.
403

City of San Bernardino Municipal Water Department
Top Ten Sewer Collection Customers
Fiscal Year 2022
San Bernardino County Unified School District 120,737 $ County of San Bernardino 116,369
Saint Bernardine Hospital 49,388
PAMA Management Company 48,844
Housing Authority of the County of San Bernardino 45,278 City of San Bernardino 39,475
Lido Condominiums 38,257
Broadstone Investors LLC 36,685
San Bernardino Community Hospital 32,767
W. Dean Weidner 32,073
Top Ten Customers Total 559,873 $
Total Sewer Collections Revenue* 6,306,843 $
Top Ten Customers Percent of Total 8.88%
Source: Department's records
2022 Top 10 Customers
101

Packet Pg.
404

7+,63$*(,17(17,21$//</()7%/$1.
102

Packet Pg.
405

CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT
JUNE 30, 2022 SINGLE AUDIT REPORT

Packet Pg.
406

&,7<2)6$1%(51$5',12
081,&,3$/:$7(5'(3$570(17

6,1*/($8',75(3257

-81(

Packet Pg.
407

CITY OF SAN BERNARDINO

MUNICIPAL WATER DEPARTMENT

SINGLE AUDIT REPORT

JUNE 30, 2022

TABLE OF CONTENTS

Page
Number

Independent Auditors’ 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 ...................................................................... 1

Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................................................................ 3

Schedule of Expenditures of Federal Awards for the
Fiscal Year Ended June 30, 2022 ........................................................................................................ 6

Notes to the Schedule of Expenditures of Federal Awards .................................................................... 7

Schedule of Findings and Questioned Costs for the
Fiscal Year Ended June 30, 2022 ........................................................................................................ 8

Summary Schedule of Prior Year Findings and Questioned Costs for the Fiscal Year Ended June 30, 2021 ...................................................................................................... 10

Packet Pg.
408

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022

INDEPENDENT AUDITORS’ 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

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

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 each major fund of the City of San Bernardino Municipal Water Department (the “Departm ent”), a component unit of the City of San Bernardino, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Departmen t’s basic financial statements, and have issued our report thereon dated January 17, 2023.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statement s, we considered the Department’s internal control over financial reporting (internal control) as a basis for designing 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 Department’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the Department’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 ther e is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be prevented, or detected and cor rected, on a timely basis. A significant deficiency is a deficiency, or a combinati on 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 c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in internal control that might be material weaknesses or, significant defic iencies. Given these limitation s, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Dep artment’s financial statements are free from material misstatement, we performed tests of its complianc e with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 a re required to be reported under Government Auditing Standards.

Packet Pg.
409

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Purpose of this Report

The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Department’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 Department’s internal control and complianc e.

Accordingly, this communication is not suitable for any other purpose.

Brea, California
January 17, 2023

2 Packet Pg.
410

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT O

N COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California (the “City”)’s c ompliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Department’s major federal programs for the year ended June 30, 2022. The Department’s major federal programs are identified in the summary of auditor ’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the Department, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to fi nancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the Department and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the Department’s compliance with the compliance requirements referred to above.

Emphasis of Matter
As discussed in Note 1 to the Schedule of Expenditures of Federal Awards (the “Schedule”), the Schedule presents only the federal awards administered by the Department and does not purport to, and does not, present fairly the total federal expenditures of the City as a whole as of June 30, 2022, or nor does this report on compliance extend to those federal award programs not administered by the Department.

Packet Pg.
411

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Department’s government programs.

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above, whether due to fraud or error, and express an opinion on the Department’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will al ways detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Department’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and Uniform Guidance, we:

 Exercise professional judgment and maintain professional skept icism throughout the audit.

 Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such p rocedures include examining, on a test basis, evidence regarding the Department’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

 Obtain an understanding of the Department’s internal control o ver compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

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 norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h 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 a combination of deficiencies, in internal control over comp liance, 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 that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
4 Packet Pg.
412

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Our consideration of internal cont rol over compliance was for t he limited purpose described in the Auditor’s Responsibilities for t he Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial stat ements of each major fund of the Department, as of and for the year ended June 30, 2022, and the related notes to the financial sta tements, which collectively comprise the Department’s basic financial statements. We issued our report t hereon dated January 17, 2023, which contained unmodified opinions on those financial statements. Ou r audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a requi red part of the basic financial statements.

Such information is the respon sibility of management and was de rived from and relates directly to the underlying accounting and other records used to prepare the bas ic financial statements. The information has been subjected to the auditing procedures applied in the au dit 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 basic financia l statements or to the basic financial statements themselves, and other additional procedures in accor dance 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.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over complia nce and the results of that tes ting based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Brea, California
January 17, 2023
5 Packet Pg.
413

CITY OF SAN BERNARDINO MUNICIPAL WATER DISTRICT

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
Federal
Assistance Program
Federal Grantor/Pass-Through Grantor/Program Title Listing Number Expenditures Environmental Protection Agency
Consent Decree * 66.000
Operations and maintenance:

Newmark 823,010$
Muscoy 1,111,531
Site wide monitoring 115,866
Project management 136,440
Subtotal - Consent Decree 2,186,847
Direct Award:

Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative Agreements 66.802 65,092
Total Environmental Protection Agency 2,251,939
Total Federal Expenditures 2,251,939$
* Major Program
Note a: Refer to Note 1 to the sche dule of expenditures of federal awards for a description of significant accounting policies used in preparing this schedule.

Note b: There was no federal award s expended in the form of noncash assistance and insurance in effect during the year.

Note c: Total amount provided to s ubrecipients during the year was $0. 6 Packet Pg.
414

CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022

Note 1: Summary of Significant Accounting Policies Applicable t o the Schedule of Expenditures of Federal Awards

a. Scope of Presentation

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the San Bernardino Municipal Wate r Department (the "Department"), a component unit of the City of San Bernardino, California (the “City”), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Department, it is not intended to and does not present the financial position, changes in net position or cash flows of the Department, nor does it present a ll federal programs of the City of San Bernardino as a whole.

b. Basis of Accounting

Expenditures reported on the Schedule are reported on the accru al basis of accounting.

Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Under the accrual basis of accounting, expend itures are recognized when incurred. Expenditures reported include any property or eq uipment acquisitions incurred under the federal program. The Department did not use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance.

Note 2: Background of the Consent Decree

In 1996, the City filed a complaint against the United States of America, Department of the Army (Army) to recover damages, response costs and other available r emedies relating to contamination alleged to have originated at a World War II Army installation known as Camp Ono. In March 2005, the United States Department Court, Central Department, entered judgment, in the form of a consent decree (Consent Decree), in the matter of City of San Bernardino v. United States of America. The consent decree settles the City’s and the State’s claims arising from the groundwater contamination allegedly caused by the Army. The Consent Decree contains a number of provisions obligating the City (through the Municipal Water Department) to operate and maintain the Newmark Groundwater Superfund site (Site). The Site consists of two operable units, the Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was declared operational and functional in 1998.

The Consent Decree provided for a payment of $69 million from t he Army to the City for performance of the work outlined in the consent decree. Upon entry of the Consent Decree, the City, through the Depa rtment, received title to all facilities constructed by the United States Environmental Protection Agency (EPA) for the Site and agreed t o operate and maintain the groundwater extraction and treatment system for a period of 50 years. The $69 million payment consisted of $59 million for oper ation and maintenance and $10 million for the construction of certain capital facilities that would be required in the future . The funds are subject to strict limitations, contained in the Consent Decree, as to how they may be spent.

Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be used only for (i) funding construction of treatment and directly related transmission systems that expanded the Department’s capacity to deliver potable water, and (ii) funding work performed by the Department to complete construction of the Muscoy Operable Unit extraction system. These “capital facility” funds may not be used for costs incurred to operate, maintain, repair or retrofit components of the Site extraction or treatment systems constructed by EPA. In September 2007, the Muscoy Operable Unit was declared operational and functional. 7 Packet Pg.
415

CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

SECTION I - SUMMARY OF AUDITORS' RESULTS

Financial Statements

Type of auditors' report issued: Unmodified Opinion

Internal control over financial reporting:

 Significant deficiencies identified? yes X none r eported

 Material weaknesses identified? yes X no

Noncompliance material to financial
statements noted? yes X no

Federal Awards

Internal control over major programs:

 Significant deficiencies identified? yes X none r eported

 Material weaknesses identified? yes X no

Type of auditors' report issued on compliance for major programs: Unmodified Opinion

Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform
Guidance)? yes X no

Identification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster

66.000 Consent Decree

Dollar threshold used to distinguish
between type A and type B program $750,000

Auditee qualified as low risk auditee? X yes no 8 Packet Pg.
416

CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

SECTION II - FINANCIAL STATEMENT FINDINGS

No matters were reported.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.
9 Packet Pg.
417

6RXWK³(´6WUHHW6DQ%HUQDUGLQR&DOLIRUQLD
32%R[
3KRQH

)$&6,0,/(180%(56
$GPLQLVWUDWLRQ

&XVWRPHU6HUYLFH

)LQDQFH

(QJLQHHULQJ

&RUSRUDWH<DUGV

:DWHU5HFODPDWLRQ3ODQW

(QYLURQPHQWDO 5HJXODWRU\&RPSOLDQFH

(QYLURQPHQWDO&RQWURO

203 N. Brea Blvd., Suite 203
Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022 January 17, 2023

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

We have audited the financial statements of each major fund the City of San Bernardino Municipal Water Department (the “Department”), a component unit of the City of San Bernardino, California, for the year ended June 30, 2022. Professional standards require that we pro vide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, 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 May 16, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters

Qualitative Aspects of Significant Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Department are described in Not e 1 to the financial statements. As described in Note 1 to the financial statements, the District c hanged accounting policies related to lease accounting by adopting Statement of Governmental Accounting Sta ndards (GASB Statement) No. 87, Leases, in fiscal year ending June 30, 2022. Accordingly, the c umulative effect of the accounting change as of the beginning of the year is reported in the basic financ ial statements. We noted no transactions entered into by the Department 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 stat ements 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 Department’s financial statements were:

Management’s estimates of its net pension liability, net other post-employment benefits liability/(asset), and self-insurance liability are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability, net other post-employment benefits liability, and self-insurance liability to determine that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensit ive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:

The disclosure of the Consent Decree in Note 13 to the financial statements identifies the provisions of the settlement regarding a complaint filed by the City of San Bernardino against the Department of the Army to recover damages, response costs, and other available remedies relating to contamination alleged to have or iginated at a WWII army installation.

The financial statement disclosures are neutral, consistent, and clear.

Packet Pg.
419

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Significant or Unusual Transactions

Management is responsible for the policies and practices used t o account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with mana gement in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require u s to accumulate all known and l ikely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were mat erial, either individually or in the aggregate, to the 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 dis agreements 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 January 17, 2023.

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 sit uations. If a consultation involves application of an accounting principle to the Department’s financial statem ents or a determination of the type of auditor’s opinion that may be expr essed on those statements, ou r professional standards require the consulting accountant to check with us to determine that the co nsultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the signif icant events or transactions that occurred during the year, business conditions affecting the Department and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the Department’ s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Packet Pg.
420

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Other Matters

We applied certain limited procedures to management’s discussio n and analysis, the schedule of proportionate share of the net pension liability, the schedule of changes in net OPEB liability/(asset) and related ratios, the schedules of plan contributions, and the schedule of OPEB plan investment returns which are required supplementary information (RSI) that supplements t he 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 not engaged to report on the introductory and statistic al section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, w e do not express an opinion or provide any assurance on it.

The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit:

GASB Statement No. 87, Leases.

GASB Statement No. 89, Accounting for Interest Cost Incurr ed before the End of a Construction Period.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.

The following GASB pron ouncements are effect ive in the followin g fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal year 2023

GASB Statement No. 91, Conduit Debt Obligations.

GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

Fiscal year 2024

GASB Statement No. 99, Omnibus 2022.

GASB Statement No. 100, Accounting Changes and Error Corrections.

Fiscal year 2025

GASB Statement No. 101, Compensated Absences.

Packet Pg.
421

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Restriction on Use

This information is intended solely for the use of the Water Bo ard and management of City of San Bernardino Municipal Water Department and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,

Brea, California

Packet Pg.
422

203 N. Brea Blvd., Suite 203
Brea,CA92821Lance, Soll & Lunghard, LLP Phone: 714.672.0022

INDEPENDENT AUDITORS’ 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

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Report on Internal Control over Financial Reporting

Accordingly, we do not express an opinion on the effectiveness of the Department’s internal control.

Report on Compliance and Other Matters

Packet Pg.
423

To the Water Board
City of San Bernardino Municipal Water Department
San Bernardino, California

Purpose of this Report

Accordingly, this communication is not suitable for any other purpose.

Brea, California
January 17, 2023

Packet Pg.
424

San Bernardino Municipal Water Dept.

Fiscal Year 2021/22 Financial Audit

Packet Pg.
425

www.lslcpas.com
Overview of the Audit
• LSL has been engaged by San Bernardino Municipal Water Department (SBMWD) to perform a financial audit over the basic financial statements.
• Conducted over two weeks
– Interim audit was conducted week of May 16th
– Final audit was conducted week of October 31st
• Goal is to render an “opinion” on whether the amounts reported in the financial statements are reliable in all material respects.

Packet Pg.
426

www.lslcpas.com
Overview of the Audit
• What the Audit is Not:
– Primarily a search for fraud or misappropriation of assets. • Although we are required to be always be cognizant of and consider the possibility such things, they are not our primary goal. We are required to report on them if they are identified or brought to our attention during our audit.
– An evaluation of the operational results of an organization. • If we believe there is significant risk that the organization will fail financially within 12 months after reporting date, we will report on it. However, making judgment calls on normal year-over-year operating results (e.g., doing better or worse) is not within the scope of a financial audit.

Packet Pg.
427

www.lslcpas.com
Audit Report
• Unmodified Opinion:
– Opinion was rendered on January 17, 2023
– The financial statements can be relied upon and are materially correct as of June 30, 2022
• Basis for Opinion:
– Generally accepted auditing standards
– Government Auditing Standards

Packet Pg.
428

www.lslcpas.com
Audit Report
• Emphasis of Matter:
– Department implemented GASB Statement No. 87, Leases,w h i c h changed accounting principles for lease activities.
• Responsibilities of Management:
– Preparation and presentation of financial statements
– Design and implementation of internal controls
– Consideration of going concern (will SBMWD be financially viable for the next 12 months?)

Packet Pg.
429

www.lslcpas.com
Audit Report
• Responsibilities of Auditor:
– Obtain reasonable, not absolute, assuranc e that the financial statements are free from material misstatement due to fraud or error
– Exercise professional judgment and maintain professional skepticism – Identify risks of material misstatem ent and develop audit procedures to respond to the risks
– Obtain and understanding of internal control in order to design audit procedures. – Evaluate appropriateness of accounting policies and estimates – Evaluate SBMWD for going concern

Packet Pg.
430

www.lslcpas.com
Audit Report
Other Reporting Requirements
• Required Supplementary Information:
– Perform limited procedures to require d supplementary information including inquiries, comparisons to basic financial s tatements, reviewing for consistency with prior years, and other expectations.
• Management’s Discussion and Analysis
• Pension and other post-employment benefits (OPEB) schedules – Provided to give explanations for changes in operations year-over-year and to provide historical context for pension and OPEB obligations.

Packet Pg.
431

www.lslcpas.com
Audit Report
Other Reporting Requirements (continued)
• Other Information
– Introductory and Statistical sections are read for consistency w ith basic financial information
– Provide general and historical (10 year) information about the government, as well as other information.

Packet Pg.
432

www.lslcpas.com
Report on Internal Control and Compliance
• This report is required by Government Auditing Standards for the purpose of reporting significant deficiencies or material weaknesses in internal controls or material noncompliance with laws, regulations, grant agreements, bond covenants, contracts, etc.
• No findings were reported for FY2021/22.

Packet Pg.
433

www.lslcpas.com
Other Required Communication
• Significant Accounting Practices
– Implementation of GASB 87
– Management’s estimates of net pension liability and net OPEB liabilities • Significant or Unusual Transactions
– None to report
• Difficulties Performing Audit, Misstatements, or Disagreements with Management
– None to report

Packet Pg.
434

www.lslcpas.com
Summary of Results
• Unmodified (“clean”) audit opinion was rendered.
• No significant deficiencies or material weaknesses in internal controls were identified.
• No material noncompliance with laws, regulations, grant agreements, and contracts were identified.
• No audit adjustments were required.
• No difficulties conducting audit or disagreements with management about accounting policies occurred.

Packet Pg.
435

Ryan Domino, CPA, Partner
[email protected]
Kirk Hamblin, CPA, Manager
[email protected]

Packet Pg.
436

City of Son Bernordino
Municipol Woter Deportment
nnuol Comprehensive
inoncio! Report (ACFR)
As of June 30, 2022

Packet Pg.
437

Audit Actuals
FY 2022 FY 2O2L
S lncrease/
(Decrease) % Change
Operating Revenue
Operating Expenses less
Depreciation
Net Operating I ncome/( loss)
Non-Operating
Reve nue/( Expense)
Net lncome before Capital
Contributions
543,150,L24 542,758,!92
32,372,62L 34,U7,968
10,777,503 8,116,224
483,961 791,527
11,26L,464 8,n7,75L 2,353,7L3
s 391,932
(2,269,3471
_2,551,2?9_
(307,556)

0.92%
(6.ss%)

32.79%
(38.85%)

26.42%
Woter Fund Results

Packet Pg.
438

FY 2022
Actuals
S lncrease/
(Decrease) %i Change
Operating Revenue S 39,825,500
Operati ng Expenses less
Depreciation 37,748,092
46,251

8.35%
(74.24%)
478.80%
]i0.57%
8,76,356 347.75%
543,150,!24
32,372,62'1,
5 3,324,624
(5,375,471)
8,700,095N et O pe rati n g I n co m e/( I o ssl _2,077, 4O8_ _L0 J??,503_ Non-Operating
Revenue/(Expense) 437,700 483,961
Net lncome before Capital
Contributions 2,515,108 LL,26t,464
Woter Fund Results

Packet Pg.
439

Audit Actuals
FY 2022 FY 2027
34,777,160 30,361,115 3,810,044
$ lncrease/
(Decrease) % Change

12.55%
(0.06%l

48.Str/o
(2L.3t%)

89.37%
Operating Revenue
Operating Expenses less
Depreciation
Net Operating I ncome/(loss)
Non-Operating
Reve nue/( Expense)
Net lncome before Capital
22,465,2L2 22,478,5L6 (13,304)
11,705,948 7,882,6@ 3,823,348:::
(2,288,006) (2,907,6571 619,651
Contributions 9,417,942 4,974,943 4,42,999
Sewer Treotment Fund Results

Packet Pg.
440

Net Ope rati ng I ncome/( loss) _2,954239_
Non-Operating
Revenue/(Expense) (833,700)
Net lncome before Capital
Contributions 2,12O5!10
FY 2022
Budget Actuals
OperatingRevenue 28,517,000 34,171,760
Operati ng Expenses less
Depreciation 25,562,770 22,465,212
S !ncrease/
(Decrease) %Change
5,654160 19.83%
(3,097,558) (12.72%)
_11J05,948_ _8J51,?18_ 296.24%
(2,288,005) (1,454,306) 174.M%
9,417,912 7,297,412 3M.13%
Sewer Treotment Fund Results

Packet Pg.
441

Audit Actuals S lncrease/
(Decrease) % ChangeFY 2022 FY 2O2L
Operating Revenue
Operating Expenses less
Depreciation
Net Operating I ncome/(loss)
Non-Operating
Reve nue/( Expense)
Net lncome before Capital
Contributions
6,394,623 7,794,418 (1,399,795)
(!21,727l.
(17.960/0)
(1..84o/o)6,459,718 6,580,845
1,213,573_(6s,oss)_
(51L,234l
(575,329)
(1,278,668) (105.36%)
L0,911 (522,1451 (4,785.49%)
(1,8(n,813) (L47.07%)t,224,484
Sewer Collection Fund Results

Packet Pg.
442

FY 2022
Budget Actuals
Operating Revenue 7,710,000 5,394,623
Operating Expenses less
Depreciation 7,679,4U 6,459,718
Net Operating lncome/(loss) 3O515 (65,095)
$ lncrease/
(Decrease)
(L,315,3771
('t,2L9,766)
(95,611)
%o Change
(17.06%)
(1s.88%)
(3t3.31%)
Non-Operating
Revenue/(Expense) 402,000 (571.,234) (913,234) (227.77%l Net lncome before Capital
Contributions 432,516 _(s?5,3?gl _G,00&84s1_ Q33.2s%',) Sewer Collection Fund Results

Packet Pg.
443

1 1
7 6

PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: March 15, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager:

Nathan R. Freeman, Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Development Permit Type-P 22-03 (Ward 2)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023-045 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type–P 22-03 allowing the conversion of an existing two-story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres located at 1490 N. D Street (APNs: 0145-181-03, 04, and 13), within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, and finding the project is subject to a Categorical Exemption under the California Environmental Quality Act.

Background
On January 10, 2023, the Planning Commission adopted Resolution No. 2023-003 forwarding a recommendation that the Mayor and City Council (Attachment 3):

1. Find the Categorical Exemption, pursuant to Section 15303 (New Construction or Conversion of Small Structures) and Section 15332 (In-Fill Development Projects) for Development Permit Type-P 22-03 in accordance with the California Environmental Quality Act; and

2. Approve Development Permit Type-P 22-03 based on the Findings of Fact and subject to the recommended Conditions of Approval.

Discussion
Setting and Site Characteristics
The project site is comprised of an approximately 0.68-acre parcel located at 1490 N.

Packet Pg.
444

1 1
7 6
D Street, within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay (Attachments 4 and 5). The project site is currently developed with an existing two- story office building, parking lot, and is surrounded by a mix of commercial and residential uses.

Table 1, below, provides a summary of the surrounding land use characteristics of the subject site and surrounding properties.

LOCATION LAND USE ZONE GENERAL PLAN

DESIGNATION
Site Office Building Commercial General (CO) Commercial North Offices and
Residential Commercial General (CO) Commercial
South Offices and
Residential
Commercial Office (CO) and
Residential Suburban (RS)
Commercial and
Residential
East Residential Residential Suburban (RS) Residential
West Residential Commercial (CO) Commercial
Analysis
Ordinance No. 1479 was adopted by the Mayor and City Council on April 4, 2018, amending Chapter 19.19 (Main Street Overlay District) of the City of San Bernardino Development Code which added the Adaptive Reuse (AR) Overlay to allow the conversion of existing commercial and office building to residential units within specified areas. The intention of the AR Overlay is to allow for the reuse of existing buildings within the City that have been underutilized due to there being a decline in the need for traditional office and commercial spaces, into viable residential purposes within strategic areas that have become blighted from the lack of consistent use. This will aid in meeting the increased housing needs in the City. The AR Overlay is a flag shaped overlay bounded approximately by the south side of Highland Avenue on the north, the west side of D Street on the west, east side of Waterman Avenue on the east, the north side of Baseline Street on the south from Waterman Avenue to D Street, then both sides of D Street from Baseline Street to 8th Street.

With this in mind, the project applicant is requesting the conversion of an existing two- story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres, in accordance with Section 19.19-B.030 (General Provisions - Adaptive Reuse (AR) Overlay) and Section 19.44.030 (Applicability and Project Review – Administrative and Development Permits) of the City of San Bernardino Development Code.

Site Design/ Access/ Off-Street Parking
The proposed conversion of the existing two-story office building into a twelve (12) unit apartment complex will contain six (6) residential units on the first floor and six (6) residential units on the second floor ranging in size from 711 square feet to 1,000

Packet Pg.
445

1 1
7 6
square feet. Each unit will contain one (1) to two (2) bedrooms, bathrooms, kitchen facilities and washer/drier availability. An open space courtyard of approximately 1,057 square feet with picnic area will be provided and only accessible by the building’s tenants.

Additionally, the project site will maintain primary access through W. Magnolia Avenue via two (2) driveway approaches. The internal site circulation has been designed to adequately accommodate on-site vehicular circulation and access to off-street parking areas. In accordance with Section 19.19-B.040 (4) (Development Standards – Adaptive Reuse (AR) Overlay) of the City of San Bernardino Development Code, the project applicant is required to provide one (1) parking space per residential unit, plus one (1) guest parking space per every five (5) units for a total of a total of fifteen (15) parking spaces. However, the project site parking area will be improved to accommodate twenty-one (21) parking spaces to include two (2) accessible parking stalls. Designated "paths of travel" have also been provided to ensure pedestrian safety.

Traffic
Based on the size of the project and number of trips generated, the City’s Traffic Engineer Division did not require the review of a project scope study form for Levels of Service (LOS), and the Vehicle Miles Traveled (VMT) assessment. The Traffic Engineer has determined that the proposed project will not have a significant impact on the surrounding roadways or intersections.

Architecture
The proposed project meets design guidelines outlined in the City’s Development Code for commercial land uses. The existing two-story building will be rehabilitated to accommodate the conversion to a multiple residential use by modernizing exterior elevations through the use of modern neutral colors, new windows, stucco finish and wood siding to match existing architectural components.

Landscaping
The proposed project will restore existing landscape areas and incorporate new landscaping within specified parking and setback areas, as required. Access to the off- street parking from W. 15th Street will be closed to accommodate a new five (5) foot landscape setback that will continue to the west side of the site with an approximately new twelve (12) foot landscape setback. The landscape areas will consist of various trees ranging in size with 24-inch and 15-gallon size Brisbane Box and Crape Myrtle.

In the internal off-street parking areas, there will be existing landscape with mixture of 1-gallon and 5-gallon shrubs.

Operations
The proposed apartment residential complex will be accessible to occupants, and visitors of occupants, 24 hours a day, seven (7) days a week. The facility will incorporate security cameras at various vantage points along the sides of W. 15th Street, N. D Street and W. Magnolia Avenue.

Packet Pg.
446

1 1
7 6
California Environmental Quality Act
In accordance with Section 15060 (Preliminary Review) of the California Environmental Quality Act (CEQA), the Planning Division conducted an environmental evaluation in connection with proposed Development Permit Type-P 22-03 and concluded that Development Permit Type-P 22-03 is found to be exempt under Section 15061(b)(2) (Review for Exemption) of CEQA, under Section 15332 (In-Fill Development Projects) and Section 15303 (New Construction or Conversion of Small Structures) of CEQA.

A Class 32 Categorical Exemption consists of projects characterized as in-fill development meeting the conditions contained within Section 15332 of CEQA. A Class 32 covers projects consisting of small project on less than five (5) acres due to the property located and surrounded by existing commercial and residential development and has no significant negative impacts on the environment are anticipated to result from development of the site. The design of the site will not have any significant negative impacts to wildlife or their habitat, and no sensitive or protected species have been identified on the existing site.

A Class 3 Categorical Exemption also consists of projects characterized as construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. A Class 3 covers projects in urbanized areas, up to four (4) such commercial buildings not exceeding 10,000 square feet in floor area on sites zoned for such use, if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available, and the surrounding area is not environmentally sensitive. Furthermore, Conditions of Approval will be imposed to alleviate potential impacts and there are no additional potential significant environmental impacts that may result from the proposed development and establishment of the proposed project.
2021-2025 Strategic Targets and Goals
Development Permit Type-P 22-03 aligns with Strategic Target 3 Improved Quality of Life. The proposed conversion of an existing office building into residential units will create a benefit to the surrounding neighborhood by reusing an existing blighted property along a commercial and residential corridor creating a clean landscape property with modern design that will enhance the aesthetic of the area while helping the City meet its housing needs.

Fiscal Impact
There is no fiscal impact to the General Fund associated with this report.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023-045 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type–P 22-03 allowing the

Packet Pg.
447

1 1
7 6
conversion of an existing two-story office building, containing approximately 9,988 square feet, into an apartment complex consisting of twelve (12) multiple-family residential units on a project site consisting of three (3) parcels containing a total of approximately 0.68 acres located at 1490 N. D Street (APNs: 0145-181-03, 04, and 13), within the Commercial Office (CO) zone and Adaptive Reuse (AR) Overlay, and finding the project is subject to a Categorical Exemption under the California Environmental Quality Act.

Attachments
Attachment 1 Resolution No. 2023-045 (Approving Development Permit Type-P 22-03)
Attachment 2 Resolution No. 2023-045, Exhibit A - Plans Attachment 3 Planning Commission Resolution No. 2023-003 Attachment 4 Aerial Map
Attachment 5 Location/Zoning Map
Attachment 6 Power Point
Attachment 7 Newspaper Publication
Ward:

Second Ward
Synopsis of Previous Council Actions:

None

Packet Pg.
448

Resolution No. 2023-045
Resolution No. 2023-045
March 15, 2023

Page 1 of 21 ends

Mayor and City CouncilMarch 15, 2023

Mayor and City Council
March 15, 2023