Financial Literacy for Youth and Families $69,288 253 Reentry Program for Offenders $53,000 209
Rescue Equipment & Trailer** $56,857 193
Dental Clinic for Navigation Center $166,000 134
Reroute Transportation Services $53,750 106
The "Reentry Program for Offenders" Project
After the agreement with the project proponents was finalized and funds were dispersed, staff received notice that the project could not be carried out. In October of 2022, Katherine Ward from the Solano County Probation Department’s Center for Positive Change expressed that staffing limitations were ultimately the determining factor in their inability to implement this project and the funds were returned.
Participatory Budgeting Rulebook
The Participatory Budgeting Rulebook, which is approved by the City Council, provides that in the event available funds do not cover the cost of the next highest vote-getting project, subject to available resources and the discretion of the City or other agencies, the City Council "may attempt to secure additional money to complete the project[], partially fund the next highest vote-getting project, or split the remaining funding between any tied projects." If the project cannot be completed with partial funds, the remaining funds will go to the project with the next most votes that can be fully funded, or into a reserve fund. (PB Rulebook, p.9)
With the direction of the Participatory Budgeting Rulebook, staff recommends funding the next highest vote- getting project, the "Rescue Equipment and Trailer" project. This project will be implemented by the Vallejo Fire Department, which has confirmed that it can implement the project with partial funding.
FISCAL IMPACT
Upon approval of the requested action, staff will close the Reentry for Offenders project and transfer funding from that project account to the Rescue Equipment & Trailer project account. There is no total budget increase or decrease associated with this action.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines section 15378.
ATTACHMENTS
1. Reso PB Cycle 7 Reallocation Authorization_CAO Stamp
2. Reso. No. 21-126 Participatory Budgeting Cycle 7 Results
3. Rescue Equipment and Trailer - Decision Form and Proposal - Updated
4. Reentry Program Agreement
5. Project Withdrawal Email-Reentry Program for Offenders-
6. PB Rulebook
CONTACT
Date: January 23, 2024
Subject: ADOPT A RESOLUTION AUTHORIZING THE REALLOCATION OF $53,000 IN CYCLE 7 UNSPENT FUNDS FROM THE "REENTRY PROGRAM FOR OFFENDERS" PROJECT TO THE "RESCUE EQUIPMENT AND TRAILER" PROJECT
Terrance Davis, Assistant City Manager, (707) 648-4301
[email protected]
RESOLUTION NO. 24- _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VALLEJO AUTHORIZING THE REALLOCATION OF $53,000 IN
CYCLE 7 UNSPENT FUNDS FROM THE "REENTRY PROGRAM
FOR OFFENDERS" PROJECT TO THE "RESCUE EQUIPMENT AND
TRAILER" PROJECT
WHEREAS, on July 17, 2012, the City Council of the City of Vallejo created a Community Steering Committee via Resolution 12-108 N.C., and thereafter has appointed representatives to be an advisory committee to the Council in its proposal regarding the Participatory Budget (PB) process and structure; and
WHEREAS, the City Council is responsible for appropriating funding for the projects prioritized by voters per the rules set forth in the PB Rulebook; and
WHEREAS, one of the projects approved during Cycle 7 is unable to be implemented and is considered incomplete:
Cycle
Project Balance
7 Reentry Program for Offenders $53,000
WHEREAS, the PB Rulebook provides, in relevant part:
“If there is a tie, or if the available funds do not cover the cost of the next highest vote-getting project, subject to available resources and the discretion of the City or other agencies, the City Council may attempt to secure additional money to complete the project(s), partially fund the next highest vote-getting project, or split the remaining funding between any tied projects. If the project(s) cannot be completed with partial funds, the remaining funds will go to the project with the next most votes that can be fully funded, or into a reserve fund.” ; and
WHEREAS, per the above Rule, the unspent funds from the Reentry Program for Offenders project may be reallocated to the Rescue Equipment and Trailer project, which is the next highest vote-getting project in Cycle 7; and
WHEREAS, reallocating previously appropriated funds from one PB project account to another does not require amendment of the General Fund budget.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes that the unspent funding from the “Reentry for Offenders” project shall be reallocated to the “Rescue Equipment & Trailer” project as follows:
Cycle
Project Name Expenditure Budget
7 PBC7 - Reentry Program for
Offenders
-$53,000
7 PBC7 - Rescue Equipment and
Trailer
53,000
Adopted by the City Council of the City of Vallejo at a regular meeting held on January 23, 2024 with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST:
_________________________________________
DAWN G. ABRAHAMSON, CITY CLERK
RESOLUTION NO. 21-126 N.C.
ADOPTING THE RESULTS OF THE CYCLE 7 PARTICIPATORY
BUDGETING VOTE AND PROVIDING NOTICE TO AMEND THE GENERAL
FUND AND CAPITAL OUTLAY FUND BUDGETS
WHEREAS, the City of Vallejo implemented the first citywide Participatory Budgeting process in 2012; and
WHEREAS, Participatory Budgeting is a democratic process in which commun ity members recommend to the City Council how to spend part of a public budget; and
WHEREAS, the program is currently in its seventh cycle and has provided $10,000,000 in funding towards community developed and selected projects in its first six cycles; and
WHEREAS, the Cycle 7 vote took place from September 7 – October 7, 2021 and garnered votes from over 1,900 Vallejo residents; and
WHEREAS, the projects in the table below were selected by Vallejeons to be funded and the balance of funds ($8,962) rolled forward to Cycle 8; and
Project Project Amount
Basic Need Resources and Services for Homeless $75,000 No Child Goes Hungry $74,800
Animals Matter Project $75,000
Foster Youth Support Services $75,000
Meals on Wheel - Senior Nutrition Program $55,950
Firefighter Youth Academy $60,000
Financial Literacy for Youth and Families $69,288
Reentry Program for Offenders $53,000
WHEREAS, in June 2021, the City Council adopted a budget for the Fiscal Year 2021-2022; and
WHEREAS, Councilmember Arriola allocated $47,000 to Participatory Budgeting Cycle 7 through her City Council discretionary funds, adding to the $500,000 that was budgeted for Participatory Budgeting; and
WHEREAS, the discretionary funds will have to be moved from Fund 001 to Fund 003 in order to transfer to the Participatory Budgeting Cycle 7 projects, requiring a budget amendment; and
WHEREAS, City Charter Section 703 requires that available funds not included in the budget may be appropriated by the City Council after giving one week’s notice of intention to do so; and
NOW, THEREFORE, BE IT RESOLVED that the Vallejo City Council accepts the results of the Cycle 7 Participatory Budgeting vote and directs staff to implement the selected projects.
BE IT FURTHER RESOLVED that the City Council of the City of Vallejo declares its inten tion to amend the General Fund and Capital Outlay Fund Budgets in the amount of $47,000 in Fiscal Year 21-22.
Adopted by the City Council of the City of Vallejo at a regular meeting held on November 9, 2021 with the following vote:
AYES: Mayor McConnell, Vice Mayor Verder-Aliga, Councilmembers Arriola, Brown, Dew, Loera-Diaz and Miessner
NOES: None
ABSENT: None
ABSTAIN: None
______________________________________
R O B E R T H . M C C O N N E L L , M A Y O R
ATTEST:
_________________________________________
DAWN G. ABRAHAMSON, CITY CLERK
Template for Final Proposal
Project Title: PR-1: Rescue Equipment Trailer for Vallejo Fire Dept.
2. Budget amount requested: $56,857.00
3. Names of Public Safety Delegates:
William Richerson
Pablo Hernandez
Peter Becker
4. Contact email address: [email protected]
5. Type of project : Durable
6. Detailed project description:
The City of Vallejo Fire Department currently has a 14-member Urban Search and Rescue team that not only serves the urban search and rescue needs within the city of Vallejo but also participates with the Solano County Urban Search and Rescue team during times mutual aid disasters. Here in Vallejo the type of incidents that Vallejo’s USAR teams could be called upon to respond to include, high-angle rope rescue (Six Flags), Confined Space Rescue (ships, manholes, sewers, industrial). Trench Rescue (all—over), and Structural Collapse of buildings, housing, overpasses, bridges (earthquakes/terrorism/accidents).
During the 2014-2015 PB Cycle 2 budget election voters approved $302,000 in funding for a Fire Rescue Vehicle. The truck features special equipment, including a Bauer Air compressor system, a high-powered LED light tower and self-contained generator, and anchor points to tie off ropes. The primary functions of this Vehicle were to provide rehabilitations for firefighters on extended fire scenes and other incidents to keep firefighters hydrated, maintain air supply and light rescue.
Since then Northern California has been plagued by a series of major fire disasters and an increasing likelihood of stronger earthquakes. Experience shows Vallejo needs to have the ability to immediately respond to anything within Vallejo without having to wait for mutual aid/federal resources which could be relayed depending on the severity and width of the disaster.
The Vallejo’s USAR air/light/Rescue truck is not big enough to carry all the specialized equipment that is needed to successfully handle common technical rescue emergencies much less a major disaster. “Technical rescue” refers to the aspects of saving life that employ the use of tools and skills that exceed those normally reserved for emergency medical services or firefighting.
The proposed trailer will not only provide sufficient storage space for Vallejo’s USRA to carry equipment it currently is unable to , but will facilitate the acquisition and utilization of addition equipment and materials things that VFD’s specialized USRA unit is lacking.
Current USAR equipment that currently isn’t able to be carried can't carry on their Fire Rescue Vehicle.is:
5 KW generator - fixed
two (2 KW portable generators)
4 portable floodlights
hydraulic rescue tool kit (power unit, rams, spreader, hydraulic hoses) chain saw, fuel, spare chains
(2) water fire extinguishers
Air bag kit
6 SCBA's
(2) 10' Ladders
Mechanical shoring kit (paratech shoring kit or similar) 2 (Lumber kits) consisting of:
12 (4 x 4 x 8')
4 (2x12 x 8')
4(2x6 x 8')
4 sheets of 3/4" ply
Nail gun kit and nails
Confined Space Davit Arm
Given the ongoing budget constraints that preclude the purchase of another Fire Rescue Truck we are proposing the purchase of a “ready to go” trailer for the USAR. This “ready to go” trailer, towed by the USAR truck, will be able to deliver their entire search and rescue equipment with first responders thereby helping to ensure rapid deployment. The closest USAR units equipped with a “ready to go” trailer is the city of Fairfield, leaving Vallejo with an approximate mutual aid response time of 30 minutes or more.
Urban Search and Rescue has become an important function of fire departments throughout the United States. Traffic accidents, earthquakes etc. can happen anytime of the year, night or day. We rely on our first responders to come to the rescue when disaster strikes therefore, we need to equip them as bets as we reasonable can in order to give them the greatest chance to succeed when we call.
7. Why is this project needed?
The City of Vallejo Fire Department’s Urban Search and Rescue (USAR) team is currently using a truck that allows them to carry a very minimal amount of rescue equipment that doesn’t cover the broad range of potential disasters in Vallejo involving things as amusement park rides, vehicle accidents, and industrial accidents as well as disasters related to explosions and earthquakes.
8. How will the project address or solve this need and/or problem? This proposal will cover the purchase and modifications to a 22-foot enclosed trailer needed to transform it into a Search and Rescue trailer. The trailer’s size will not only allow transportation of the USAR unit’s current equipment but also provide the ability to add additional equipment without impeding quick access during emergency deployment. We consider this proposal as the most cost-effective solution available to the residents of Vallejo at this time.
9. Describe in detail how residents, visitors, groups, communities, geographic areas, or the City of
Vallejo will benefit from this project.
While PB Cycle 2’s fire department project focused on purchasing a special fire truck for Urban Search and Rescue it only provided a very minimum search and rescue equipment. Our Proposal will allow for expedited responses by a better equipped Vallejo Fire Department’s Urban Search and Rescue to severe disasters. The trailer will allow the fire department to transport specialized equipment to stabilize sites of serious accidents and disasters such as earthquakes.
Equipped with a USAR “ready to go” Trailer the Vallejo Fire Department’s current technical rescue team will be able to bring a more comprehensive toolbox to respond to residents and visitors immediately when a disaster strikes, or a complex rescue occurs. This ready to go toolbox will also be able to respond within the geographic area utilizing our mutual aid response system to assist our neighboring communities just as they would assist us. This will save time to rescue victims and free up our emergency resources quicker to respond to other life-threatening emergencies that may occur simultaneously during disasters.
10. Describe the potential challenges and/or obstacles for this project
PROJECT PARTNERS
If the facilities of the venders remain safe from disaster, natural or otherwise, no obstacles are foreseen with any of these highly respected venders for a speedy and satisfactory fulfillment of their contracts.
11. Who will implement the project?
The City of Vallejo Fire Department
12. Where will the project be implemented?
City of Vallejo-owned public property
13. Budget:
$56,857.00
13. Budget: Attached
Proposal Budget
Item Amount Vendor
22 ft. Enclosed Cargo Trailer &
Modification
$54,516.10 TPD Trailer
Decaling Trailer $2,340.90 CJ Signs
Proposal’s Total Budget $56,857.00
14. Describe the project timeline/schedule.
The project will begin during the first quarter, or as soon as the contract with the City of Vallejo is completed and will continue over a one-year period. Activities for each quarter are detailed below.
The annual fiscal year for the City of Vallejo begins on July 1st and ends on June 30th of the following year.
July-Sept. Oct.-Dec. Jan.-March April-June Activity Q 1 Q 2 Q 3 Q 4
Contract signing and project kick off X
Outreach to partner organizations X
Contract signed with Vender for
trailer
X
Modifications are undertaken for
trailer by Vender
X
Decaling of trailer
X
Completed trailer enters service with
Vallejo Fire Department USAR
X
TPD Trailers, Inc.
8530 Fruitridge Road, Suite 22
Sacramento, CA 95826
TPD QUOTE (916) 381-0532
FAX (916) 381-2558
www.tpdtrailers.com
RFQ I.D
Reference #
Patrick Wong / Vallejo Fire Sales
Date
Delivery
805-801-4048 mb. Email
MODEL # TRAILER G.V.W. Total
ST8522 2021 22' Enclosed Cargo Trailer 2 Axle 9,990 lbs. $27,049 Qty. Sku # OPTIONS Item Price
2 S-F005 UPGRADE - 5k to 7k Elect. Brake Axle Each $1,015.00 $2,030.00 187 S-B021 Scorpion Spray On Bedliner Flooring, Per Sq Ft Each Sq. Ft. $35.00 $6,545.00 1 S-B018 Ladder (to access compos ite walk-on roof) Each $390.15 $390.15 1 S-G007 ATP Storage Box 49"L x 15"W x 18" H lockable lid Each $665.00 $665.00 8 S-B004 D-Ring (Large) 6K, w/backing plate Installed $39.33 $314.60 12 S-B014 E-Track Wall mounted "curb sdie" 2 rows @ 6' each Each Ft. $11.70 $140.40 12 S-B014 E-Track Wall mounted "street sdie" 2 rows @ 6' each Eac h Ft. $11.70 $140.40 6 CPO HD Storage racking w / Adjustable Shelving "curb sdie" per l n ft $150.00 $900.00 10 CPO HD Storage racking w / Adjust able Shelving "street sdie" pe r ln ft $150.00 $1,500.00
TPD COMPOSITE CABINETRY
8.5 S-A001 Wall Cabinets 20"H x 14"D "front wall" Each Ft. $117.60 $999.60 1 S-A006 Front "L" Shaped Workstation w / room for portable gen. E ach $1,096.20 $1,096.20 1 S-A007 Generator Door and Slide Rack (popular with L-Bench) Each $924.75 $924.75 1 S-A008 Ball Bearing Toolbox, Blk (in workstation) Each $787.50 $787.50 110 VOLT ELECTRICAL
1 1-E001 LIghting package Includes: $4,596 $4,596.00
Upgraded interior LED lighting
2 Additional 12V Interior LED Lights
2 LED 12V Scene Lights on street side
Rear Loading Lights w/ Switch, 10 Watt Solar Panel
70 amp breaker box with 30amp shore power
4 interior outlets and 2 exterior outlets
1 S-D021 EXTRA RV Deep Cycle Battery & Box Each $268.75 $268.75 1 S-E010 A/C & Heat 15K BTU Cool, 14K Heat w/ Thermostat Each $2,512.50 $2,512.50 1 S-S010 3K portable Generator Each $3,656.25 $3,656.25 Phone [email protected]
RFQ Title
Contact
Address
City / St 180 Days
Victor & Corey Takehara
2/9/2021
Prices and materials subject
to change without notice. Page 1
We appreciate your business
THANK YOU.
Date printed: 2/9/2021
TPD Trailers, Inc.
8530 Fruitridge Road, Suite 22
Sacramento, CA 95826
TPD QUOTE (916) 381-0532
FAX (916) 381-2558
www.tpdtrailers.com
• RV Side Door with Electronic Key Pad, Deadbolt, Door step and Grab Handle • Deep Cycle RV Battery & Box * Solar panel * LED Running and Tail Lights * • 12 Volt LED Interior Lights with Master Switch
• Seamless Composite Floor, waterproof undercoating “washable with garden hose” • Composite Ramp Door with Scorpion Spray Non-Skid Surface • Space Frame all Box Tubing Chassis and Wall Structure • Rubber Torsion Axles w/ E-Z Lube Spindles * All Wheel Electric Brakes • Premium Steel Belted Radial Tires * Modular Wheels black on 7K" • 4’ Tongue * Top Wind Tongue Jack * Solid Steel Rear Skid Casters • D.O.T Rated Safety Chains with HD Clasps * Safety Breakaway System • Truck Grade Aluminum Molding * Aero Space Quality Fasteners • Dupont Paint * RTV High Grade Silicone * Poly Urethane Sealers • TPD's "10 Point Quality Assurance Program" & 3 Year Warranty $27,049.00
$27,467.10
$54,516.10
Shipping PER MILE
$54,516.10
IT ANY LIABILITY IN CONNECTION WITH THE SALE OF SAID PRODUCT.
Small Business Terms: Requesting 5 to 10 Day Net Payment TOTAL PRICE QUOTE UNLESS OTHERWISE PROVIDED BY LAW, THE SELLER - TPD TRAILERS INC. HEREBY TRAILER PRICE
DISCLAIMS ALL WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR TOTAL OPTIONS
PURPOSE AND NEITHER ASSUMES OR AUTHORIZES ANY PERSON TO ASSUME FOR SUBTOTAL Stardard Equipment for Special Ops Tag-A-Long / Bumper Pull Prices and materials subject
to change without notice. Page 2
We appreciate your business
THANK YOU.
Date printed: 2/9/2021
For the best experience, open this PDF portfolio in
Acrobat 9 or Adobe Reader 9, or later.
Get Adobe Reader Now!
1 Participatory Budgeting
in Vallejo
Rulebook
2 Table of Contents
Participatory Budgeting in Vallejo……………………………………………....1 Goals……………………………………………………………………..………………..….1
Project Eligibility……………………………………………………………..……...….1
Timeline………………..…………………………………………………………….……..5
Rules: How Does it Work?....……. …………………………….……………......6 Roles & Responsibilities: Who Does What?... ……………………….....10 Participatory Budgeting in Vallejo
In 2012, the Vallejo City Council established the first city-wi de Participatory Budgeting (PB) process in the United States. Through PB, Vallejo residents and stakeholders develop project proposals in collaboration with City staff, residents vote on projects, and the list of the projects that receive the most votes are submitted to City Council for consideration as part of the annual City budget.
Applying Community Development Block Grant (CDBG) rules and guidelines that target low- to moderate-income residents, a minimum of twenty percent (20%) of the allocated Measure B funding for PB projects shall be designated for program and service proposals receiving the most votes. A maxi mum of eighty percent (80%) of the allocated Measure B funding for PB projects shall be designated f o r capital infrastructure and durable projects.
Goals
1. Improve our city
x Improve the infrastructure of the City, assist in enhancing the public safety of citizens, and to improve the quality of life f or residents through the creation of and payment for projects without the expenditure of Measure B funds for salary
expenses.
x Build a new spirit of civic pride and raise the profile of Vall ejo on the regional, state, and national levels.
2. Engage our community
x Ensure that all members of our community have a voice. x Engage those who are traditionally underrepresented in politics, who face obstacles to participating, or who feel disillusioned with the political process.
x Increase public involvement in civic life in Vallejo.
3. Transform our democracy
x Empower Vallejoans with the skills and knowledge they need to shape our city’s future.
x Build leadership from the bottom up and forge deeper ties between residents, neighborhoods, and communities.
4. Open up government
x Increase transparency and accountability of local government to community stakeholders.
x I m p r o v e c o m m u n i c a t i o n a n d c o l l a b o r a t i o n b e t w e e n l o c a l government and the community.
x Support a framework within government for decision-making that promotes a more just and equitable city.
Project Eligibility
P r o j e c t s a r e e l i g i b l e f o r p l a c e m e n t o n t h e b a l l o t i f t h e y m e e t the following criteria:
x Provide primary benefit for the public-at-large (or a subset gr oup that is not delineated by exclusive or paid membership in a group, organization, or by participation in a specific activity). Projects that only benefit private individuals are not eligible. Projects ma y not result in a ‘gift of public funds’ to individuals (See Cal. Const. Art. XVI § 6) and must serve a public use or purpose. Generally, this mea ns that the project results in a direct/primary concrete or quanti fiable service or benefit to the public.
x Provide a tangible, permanent benefit that allows for broad public access. This includes a long-term plan to maximize benefit for the full utility of acquired assets (typically sustainable beyond the 12-16 month implementation timeline). This criterion may not always apply to program and service project proposals that otherwise meet existing CDBG guidelines.
3 x Are designed to accomplish their goals and fulfill their purpos e using funds from this year’s PB process. Projects may not obligate the City to ongoing funding beyond the PB allocation. If other funding sources are needed to accomplish the project goals, tho se f u n d s m u s t b e s e c u r e d p r i o r t o s u b m i s s i o n f o r C i t y r e v i e w a n d vetting.
x Are capital infrastructure, capital improvement, durable acquisition, or program and service projects.
o Capital Infrastructure/improvement and/or durable acquisition projects for public purposes, on public property owned by the City of Vallejo within incorporated City limits, and implemented by the City of Vallejo and/or a public agency that manages City- owned property are eligible for funding.
o Program and service projects implemented by a public agency and/or pre-qualified 501(c)3 non-profit organization are eligible for a maximum of (20%) of Measure B funding allocated through Vallejo’s PB process. All program and service project proposals must meet the existing City-implemented CDBG
guidelines and qualifications; the City must be able to document that all program recipients reside within
incorporated City limits, and that at least 51% of program recipients are low- or moderate-income. Funding cannot cover administrative, overhead, or routine maintenance costs. o Individual proposals may propose either capital
infrastructure/durables or programs and services, but not a combination.
x A minimum of 20% of available project funding is allocated for program & service projects; if/when the 20% minimum has been reached, remaining funding will fall to the next highest vote- getting project(s).
x A maximum of 80% of Measure B funding may be allocated to capital infrastructure/durable projects.
o Regardless of the total amount of allocated funding, no more t h a n a m a x i m u m o f 3 0 % m a y b e a l l o c a t e d p e r c a p i t a l infrastructure/durable project.
In addition to these criteria, the following rules apply to projects:
x Projects may not result in the private benefit of individuals or confer value to a no n- pu blic e n tity. Exampl es o f these t ypes of in eligible projects could include purchasing assets for a non-public entity that generate net revenue for a private entity, non-profit organizat ion, or individual(s) that exceeds the costs of the program in which that revenue was generated.
x Future sustainability of a project must not be contingent on market- or demand-driven revenue streams . Examples of these types of
2022 2022
4 ineligible projects could include start-ups or enterprise-drive n non- profits.
x Projects must not require a change in City or public agency policy in order to be implemented and achieve the goals outlined in the proposal. Examples of these types of ineligible projects could include studies, ordinance development, or campaigns.
x Projects implemented by non-City public agencies must also include financial or value in-kind contributions from the agency, in addition to “PB funding.”
x To comply with California Government Code § 1090, Budget D e l e g a t e s w h o d e v e l o p p r o j e c t s m a y n o t r e c e i v e a n y f i n a n c i a l benefit from funds disbursed.
x City staff may not initiate, be the main representative of or participate in projects where they will receive a personal benefit.
x For non-City implementing partners, funding may be used for skilled and/or limited-term labor, but cannot be used to cover
administration, overhead, or to fund an ongoing position.Funds will be distributed upfront. Recipients will be required to provide quarterly progress reports.
x Projects may not promote religious views or beliefs.
x Projects must be fully eligible and approved by the City Manag er, o r d e s i g n e e , i n c o n s u l t a t i o n w i t h t h e C i t y A t t o r n e y , b e f o r e b e ing placed on the ballot. A fully eligible project must contain th e following:
o Sufficient details to understand the purpose and intent of the project.
o Identification of Public Benefit(s)
o Proposed Beneficiary(ies)
o Total estimated budget, including the cost to fully implement the project to completion (i.e. bidding, staff, in-kind contribution, etc.), documented by a contractor bid, vendor quote, or other full-cost estimate
o Timeframe for project completion
x Proposals with a non-public agency as implementing partner, or with potential non-profit subcontractors, must be identified an d pre-qualified on or before the First Stage Review.
o Qualification guidelines for 501(c)3 nonprofit organizations seeking funding for a program and/or service will be developed and released by the City prior to the Idea Collection Phase. o N o n - C i t y p u b l i c a g e n c i e s m u s t s u b m i t a l e t t e r o f i n t e r e s t regarding specific proposals on or before the First Stage Review in order to be considered during review and vetting.
x Final project determination for ballot placement will be made by the Steering Committee.
5 Timeline: What happens when?
PB has four main stages:
Idea
Collection
August –
Mid-September
At public events and
community meetings
across the city, Vallejo
residents and
stakeholders will
brainstorm project
ideas and volunteer as
budget delegates.
Proposal
Development
Mid-September -
March
Delegates meet in
committees, along with
representatives from
City departments and
Public Agencies, to
transform the
community’s initial
project ideas into full
proposals. Delegates
submit final project
proposals for review
and vetting.
Voting
May - June
Residents vote at
locations around the
City or via online
ballots on which
projects to
recommend to City
Council. The projects
with the most votes
will be presented to
the City Council for
funding consideration.
Evaluation &
Monitoring
July- Onward
Evaluation of the
process and
monitoring of the
implementation of
projects.
6 Rules: How does it work?
7 Idea Collection
x Budget Assemblies are public events where project ideas are collected and will seek to reflect Vallejo’s diversity and incl ude all segments of the community. Assemblies can occur at existing public events, festivals, schools, places of worship, or online , and are facilitated by City staff, Steering Committee members, and volunteers.
x W h e r e p o s s i b l e a n d a p p r o p r i a t e , C i t y s t a f f a n d t h e P B S t e e r i n g Committee will provide Spanish and Filipino translation of materials, which may include interpretation at public events.
x Project proposals and ideas from previous PB Cycles can be considered for the current cycle. All proposals require confirmation with the project partner, are subject to evaluation by Delegates and vetting through the 3-stage Review process.
Proposal Development
x All budget delegates and public agencies representatives must attend an orientation session and project proposal workshop. x At the orientation sessions, volunteer delegates may join a committee to discuss and develop project proposals for a certai n issue area. Delegates may join more than one committee. o Committees may consist of volunteer delegates and
representatives from relevant City and public agency staff. o Issue committees may include but are not limited to:
Parks, Recreation & Art
Public Infrastructure, Safety & Transportation
Education, Training & Social Services
x Demographic subcommittees may be formed to ensure maximum participation from people who might not otherwise participate, including: Youth, Seniors, Spanish-Speakers, and members of the Filipino and African American communities. At least four delegates must sign up before a demographic subcommittee can be formed.
Subcommittees will work between issue committees to address the needs, concerns and unique circumstances of specific demographic groups.
x Any resident of Vallejo, its unincorporated areas, or stakeholders in Vallejo - people who physically work in Vallejo, own a business in Vallejo, attend school in Vallejo, or are parents of children who attend school in Vallejo - may participate.
x The Steering Committee, Budget Delegates and Public Agency Representatives will strive to minimize the total number of projects by combining projects that address a similar public need, vetti ng projects that do not meet the eligibility criteria and rules, a nd/or prioritizing projects based on greatest need and benefit. A fu lly eligible project must also undergo a three-stage review and vetting process, with exact dates to be determined by the City Manager’ s designee(s) an d the S te ering Commi tte e pri or t o th e star t o f t he Delegate phase.
x First Stage Review : Budget Delegates and Public Agency R e p r e s e n t a t i v e s s h a l l s u b m i t t o t h e C i t y a c o m p l e t e d p r o p o s a l template or summary (approximately 500 words) for each project, n o t t o e x c e e d 4 0 t o t a l p r o j e c t p r o p o s a l s . C i t y s t a f f a n d a s u b c o m m i t t e e o f t h e S t e e r i n g C o m m i t t e e w i l l p r o v i d e g e n e r a l feedback on eligibility issues and concerns but will make no binding determinations.
In order to be eligible for possible funding at the conclusion of the cycle, implementing partners and/or any 501(c)3 non-profit organizations (including potential non-profit subcontractors) w ho may seek to implement project proposals must submit a
prequalification application and letter of interest to the City on or before the First Stage Review. All public agencies who may be implementing partners must submit a letter of interest for each proposed project on or before the First Stage Review.
Project proposals or non-City implementing partners that do not u n d e r g o t h i s F i r s t S t a g e R e v i e w a r e i n e l i g i b l e f o r c o n t i n u e d development or funding in the current cycle.
x Second Stage Vetting : Budget Delegates shall submit to the Steering Committee (or a subcommittee) a maximum of 20 fully- 8 eligible project proposals. City staff will provide extensive feedback and revision requests to the Budget Delegates.
Where needed, City staff and Budget Delegates shall meet and discuss the eligibility determination in an attempt to gain mut ual understanding and seek avenues to alter the project proposal for a more favorable outcome.
Ultimately, the City Manager, in consultation with the City Attorney, shall make final determinations on whether project proposals are eligible for the Third Stage Review of the PB bal lot.
Project proposals deemed ineligible in the Second Stage Vetting may no longer be developed in the current cycle’s process and cannot be submitted for Third Stage Review.
x Third Stage Review : Budget Delegates in collaboration with supporting Public Agency Representatives shall submit their Cit y staff approved and updated final proposals for review by the Steering Committee.
T h e S t e e r i n g C o m m i t t e e w i l l c o n d u c t a f i n a l r a n k i n g o f t h e proposals. Proposals and their feedback letters will be present ed to the Steering Committee anonymously. The ranking will determine the final twelve proposals for the ballot.
A maximum of 12 eligible project proposals that include final ballot language will be presented to the public
After the City has reviewed the final project proposals, they m ay not be altered or combined, except under extraordinary
circumstances as determined by the City Manager, or designee.
Voting
x Budget delegates can present final project proposals to the community at public events and meetings. Participants will abid e by Campaign Guidelines as determined by the Steering Committee and the City Manager, or designee.
x The PB ballot shall not contain more than 12 project proposals. x Each voter may cast one vote per project proposal. Voters may cast votes for up to 20% of the total number of proposals on the bal lot (rounded up to the nearest whole number). For example, on a ballot with 12 proposals, each voter may vote for up to 3 projects. x People are eligible to vote for projects if they:
1. are at least 14 years old, or
o Budget delegates who have committed their time to the process but are under the minimum voting age are also
eligible
2. are residents of Vallejo or its unincorporated areas. x The Steering Committee and City staff will research the logistics of implementing alternative voting methods, including, but not limited to:
o An online voting platform that allows Vallejo residents to be authenticated and vote remotely
o Voting by mail
o Voting in person at the City Manager’s Office
o Voting at non-PB community events
x At the time of voting, voters must verify they satisfy the elig ibility requirements, which will be publicized prior to the vote. A comprehensive verification process that protects the public’s privacy and choice will occur before final vote results are announced. Ballots that do not satisfy the eligibility requirem ents will be eliminated.
x Voting opportunities will take place on multiple days and in multiple locations. Each voter can vote on one occasion. x No campaigning will be allowed at polling locations.
x The Steering Committee will determine the structure of the ball ot with input from the City Manager, or designee.
x City staff, the PB Steering Committee, and appropriate partners will conduct ballot “readability” tests of different ballot designs prior to the vote to minimize confusion among voters.
Consideration of Project Funding by the City Council
x Upon completion of the public voting process, the results of th e balloting will be brought before the City Council for consideration.
The City Council will have the discretion to approve which projects 9 are funded, the amount of funding, and conditions (if any) plac ed upon the use of approved funds.
x If there is a tie, or if the available funds do not cover the cost of the next highest vote-getting project, subject to available resourc es and the discretion of the City or other agencies, the City Coun cil may attempt to secure additional money to complete the
project(s), partially fund the next highest vote-getting projec t, or s p l i t t h e r e m a i n i n g f u n d i n g b e t w e e n a n y t i e d p r o j e c t s . I f t h e project(s) cannot be completed with partial funds, the remainin g funds will go to the project with the next most votes that can be fully funded, or into a reserve fund.
x A minimum of 20% of available project funding is allocated for Program & Service projects; if/when the minimum 20% has been reached, remaining funding will fall to the next highest vote-getting project(s).
Monitoring of Funded Projects
x After the vote, a monitoring subcommittee of Steering Committee members will be established to monitor the implementation of funded projects.
Amendments
x The Steering Committee may propose changes to the Rulebook with approval from a quorum of the Committee, and final approval b y t h e C i t y C o u n c i l . T h e C i t y C o u n c i l m a y m a k e c h a n g e s t o t h e Rulebook via a majority vote.
10 Roles & Responsibilities: Who does what?
11 There is a role for everyone in participatory budgeting, but di fferent people have different roles and responsibilities, based partly on their stake in the community and their time commitment to the process. We encourage every community stakeholder to both participate and encourage others in the community to participate.
Vallejo Residents and Stakeholders
Anyone can participate in the process to:
x Identify local problems and needs
x Propose project ideas
x Volunteer to serve as budget delegates
x Mobilize Vallejo residents and stakeholders to participate x Vote on project proposals, if a Vallejo resident
Budget Delegates
Budget delegates do the work necessary to turn community ideas into real projects.
x Attend a Budget Delegate Orientation and a Project Proposal Workshop.
x Collaboratively discuss, categorize, and prioritize initial pro ject ideas.
x W i t h t h e i r i s s u e c o m m i t t e e , c o l l a b o r a t i v e l y m a k e i n i t i a l determination on project proposal eligibility prior to development, with assistance from the Steering Committee and staff.
x Assess need and benefit when determining which eligible project proposals will/will not be resubmitted at different stages of review. x C o n s u l t w i t h V a l l e j o r e s i d e n t s a n d s t a k e h o l d e r s o n p r o j e c t proposals.
x Help develop full project proposals that address needs and have a broad impact on the community.
x Responsible for developing all proposals within the issue committee.
x Prepare project posters and presentations.
x Mobilize Vallejo residents and stakeholders, conduct outreach. x Monitor project implementation and evaluate the PB process x Develop accurate and precise implementation budgets during development process
Facilitators
Facilitators help residents participate effectively in committe e meetings. They are neutral parties that do not advocate for par ticular projects.
x Facilitate group discussions and meetings, and ensure that all participants are able to contribute
x Serve as the main point of contact between the City Manager (or designee), the PB Steering Committee, and delegates, helping to coordinate communication and resolve conflicts
x Connect delegates with information and resources, as well as liaise with City staff
x Ensure that notes are taken at meetings and distributed afterward x Support delegates in researching, assessing and developing proposals, based on criteria that include feasibility, need and benefit
City Manager Designee
The City Manager Designee will be the main person(s) responsibl e for coordinating the PB process with input and assistance from the Steering Committee.
x Serve as a point of contact between the City and the PB Process x Coordinate PB outreach efforts
x Serve as staff liaison to the PB Steering Committee and enforce Brown Act rules.
x Recruit and coordinate volunteers
x Create qualifications check-list based on this Rule Book x Create implementing partner eligibility check-list
x Create a pre-qualification application for non-public implementing entities that reflects Vallejo-specific CDBG eligibility and requirements.
x Reserve space for assemblies and meetings
x Arrange food, childcare, and interpretation for assemblies and meetings
12 x Present information on the City’s budget and past spending, including monthly updates on the operating budget and PB expenses.
x Distribute promotional materials
x Serve as liaison between PB participants and City
x Present implementation analysis and plan for voter-recommended project proposals to the City Council for consideration x Present updates to the City Council
City and Agency Staff
x Assess feasibility and legality of project proposals
x Provide cost estimates for project proposals
x Offer feedback on project proposals
x Provide a liaison to attend delegate meetings
Vallejo City Council
x Establish the PB process
x Appoint the Steering Committee
x Appoint three (3) alternates to the Steering Committee (one organization and one at-large) who will automatically fill vaca nt positions should they become available during the current PB cycle. x Take action on the Rulebook
x Consider funding for the projects prioritized by voters City Council Liaisons
City Council will select two liaisons to the Steering Committee. x Provide support to the Steering Committee
x Facilitate communication between the Steering Committee and City Council
x Report back to City Council on PB updates
Steering Committee
A Steering Committee coordinates PB Vallejo. The committee is composed of up to 11 members, which could include a combination of civic organizational seats and at-large seats.
The City Council appoints all seats (primary, secondary, and alternates) to the Steering Committee. The City Council shall appoint three ( 3 ) alternate members to the PBSC who will not have member privileg es unless they fill a vacancy that has become available. SC member s will serve two (2) PB cycles. A cycle is defined as beginning befor e budget assemblies and ending after the vote.
PBSC members shall annually elect a Chairperson and two (2) executive committee members to serve on a 3-member Executive Committee.
The Executive Committee’s duties, roles and responsibilities include:
o Facilitate clear communication w ith staff and PBSC to achieve the four goals of PB
o Improve the agility and functionality of the PBSC
o Lead PBSC Subcommittees (either standing or ad-hoc, as defined by the PBSC)
o Conduct quarterly attendance and participation reviews of PBSC members and recommend steps to enforce the roles and responsibilities of all PBSC members
Steering Committee meetings will be held in compliance with the open meeting requirements of the Ralph M. Brown Act. Roles and responsibilities of the PBSC include:
x Design and oversee the PB process
x Distribute promotional materials
x Promote PB in their organizations and at community events x V o l u n t e e r f o r a s s i s t a n c e a t 1 / 3 o f p u b l i c m e e t i n g s , e v e n t s , outreach efforts, voting sites, committee facilitation, and other PB- related events
x PBSC members with three unexcused absences of regular PBSC meetings in a 12-month period shall be disqualified from the PB SC and replaced by an alternate. (For organizational members, attendance of a secondary representative shall not be considere d an absence). PBSC members may have one excused absence in a 12-month period. A City Manager designee shall contact member civic organizations or at-large members with two unexcused regular meetings absences. Enforcing attendance rules shall be a responsibility of the Steering Committee leadership.
13 x Steering Committee members may be assigned as liaisons or facilitators to Budget Delegate committees, but may not participate as budget delegates. Liaisons provide technical support to Budget Delegates during proposal development, provide informational updates on Delegate Committees’ progress to the Steering Committee, and connect Budget Delegates with
resources. Steering Committee members may not advocate for specific projects.
x Recruit volunteers, organizations and community stakeholders to assist with the PB process
x Mobilize Vallejo residents and stakeholders to actively partici pate in the process
x Assist City Manager Designee in a rranging food, childcare, and interpretation for assemblies and meetings
x Meet with City Manager, staff, and Budget Delegates if concerns arise over project proposal vetting determinations
x Assist City Manager Designee in preparing voter-recommended project priorities for City Council consideration
x Evaluate the PB process
x Recommend rulebook revisions to the City Council
x Monitor project implementation
x Set meeting agendas through individual or group requests via th e Steering Committee leadership at least seven days prior to meetings.
x Rank final proposals for project ballot
Steering Committee meetings are held in compliance with the ope n meeting requirements of the Ralph M. Brown Act. Whenever possible, the Steering Committee will make decisions by consensus. If consensus is not reached, decisions will be made by a formal vote and app roved only by a quorum.
S C c i v i c o r g a n i z a t i o n m e m b e r s m u s t p r o v i d e n a m e ( s ) a n d c o n t a c t information of their representat ive(s) to the City Manager, or designee, via a letter pledging their interests. Organizational members have the option to nominate a secondary representative. If the civic organization’s primary representative cannot attend, the named secondary representative must.
All members (primary or secondary) must submit the City of Vall ejo’s Conflict of Interest of Form 700. PBSC members who do not subm it a Form 700 shall be disqualified from the PBSC and replaced by an alternate, as designated by City Council.
A n u p d a t e d l i s t o f i n d i v i d u a l s a n d o r g a n i z a t i o n s w h o s e r v e o n the Steering Committee can be reviewed on the City’s website. (pbvallejo.org)
CONSENT CALENDAR 8.H.
DATE: January 23, 2024
TO: Mayor and Members of the City Council
FROM: Terrance Davis, Assistant City Manager
Sidney Wilson, Administrative Analyst
SUBJECT: ADOPT A RESOLUTION AMENDING THE FY 23-24 BUDGET TO INCLUDE FUNDS FROM THE CLEAN CALIFORNIA GRANT AWARD (STEP 2 OF 2)
RECOMMENDATION
Adopt a Resolution to amend the budget to account for the awarded grant funds (Step 2). The City Council accepted the grant and authorized the City Manager to execute the grant agreement at a previous Council meeting.
REASONS FOR RECOMMENDATION
Staff recommends accepting these grant awards to help deter litter and debris challenges. Further, the additional lighting the grant will provide will help with safety. Finally, the replacement of downtown's benches will be a welcome upgrade as they are in dire need of replacement.
BACKGROUND AND DISCUSSION
Legislative Authority
Assembly Bill 149 (Sec.16) created the CCLGP of 2021 and was codified under Streets and Highway Code §91.41 et al.
Program Background
The Clean California Local Grant Program (CCLGP) is a competitive statewide program created to beautify and clean up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. The Program is one part of the nearly $1.1 billion Clean California (Clean CA) initiative that takes direct aim at the continuous trash accumulation that has overwhelmed the California Department of Transportation (Caltrans) and its partners. Other parts of the Clean CA initiative include litter abatement efforts, state beautification and safety projects, and public education campaigns.
Pursuant to statute, the intent of the CCLGP is to achieve the following goals: (1) Reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces. (2) Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect1. (3) Enhance public health, cultural connections, and community place-making by improving public spaces for walking and recreation. (4) Advance equity for underserved communities.
Program Budget
The program is funded by approximately $100 million dollars in FY 2023/2024 (FY 23-24) General Fund money.
The availability of grant funding is contingent on the funds being made available in the FY 23-24 State Budget. All projects must be completed and all implementation funds must be expended by June 30, 2026. Each grant award shall not exceed five million dollars ($5,000,000). There is no minimum award.
Match Requirements
Required local match is the minimum percentage of the project’s funding the applicant commits to provide as a condition of accepting a program grant. The required local match will range from 0% (i.e., no local match required)
Date: January 23, 2024
Subject: ADOPT A RESOLUTION AMENDING THE FY 23-24 BUDGET TO INCLUDE FUNDS FROM THE CLEAN CALIFORNIA GRANT AWARD (STEP 2 OF 2)
to 50% of the total grant amount requested. The percentage is determined based on the “severity of disadvantage” (SOD) of the community surrounding the project. The community surrounding the project is defined as all census tracts within a ½ mile radius of the perimeter of the project site (or sites if there are multiple locations). The required local match will decrease as the SOD of the surrounding community increases.
Reporting
Upon execution of a CCLGP agreement, grant recipients must submit quarterly Project Progress Reports and a Final Delivery Report to Caltrans. The reports will be required to assess whether projects are meeting their scope and are being delivered on time and within budget. They will be submitted electronically and due within 45-days of the end of a quarter. The State may make periodic visits, including a final inspection, to project sites. The State will determine if the work is consistent with the approved project scope. Caltrans staff will be responsible for conducting and coordinating site visits with the awarded projects. The final invoice will be paid upon submission and acceptance of the Final Delivery Report to Caltrans. Complete final delivery reports and invoices must be submitted to Caltrans no later than November 1, 2026.
Vallejo's Project
The City of Vallejo was notified of the Clean California award on October 9th. The award ($352,000) was for the full amount of the request. The City also applied for, and was awarded, a 25% match waiver. The match may either be cash or an in-kind contribution. The City Council approved acceptance of the grant and authorized the City Manager to sign the grant agreement at a previous meeting.
The City of Vallejo's proposed project plans to transform downtown's high-visibility areas with the installation of new pedestrian-backed seating benches to offer comfort along walkways, solar lighting to improve security and safety for all users, including anti-littering signage to support expanded cleanup events that will directly impact excessive litter and debris challenges faced by the Vallejo community.
FISCAL IMPACT
The approval of this item will increase FY 2023-24, Capital Grant and Contribution Fund #221 (Project # CLEAN) revenues and expenditure by $352,000.
Capital Grant and Contribution Fund #221 Project # Revenue Expenditure Clean California Project CLEAN $352,000 $352,000
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. CCLGP Resolution -Clean Cal (Step 2) (Revised) CAO Stamp
2. City of Vallejo - CC Budget
3. City of Vallejo - CC Application
4. City of Vallejo_Vallejo Downtown Georgia Street Clean Up_Transmittal Letter for Cycle 2
5. City of Vallejo_Downtown Georgia Street Clean Up and Beautification_C2 RGA_CERT (1)
CONTACT
Date: January 23, 2024
Subject: ADOPT A RESOLUTION AMENDING THE FY 23-24 BUDGET TO INCLUDE FUNDS FROM THE CLEAN CALIFORNIA GRANT AWARD (STEP 2 OF 2)
Terrance Davis, Assistant City Manager (707) 648-4301
[email protected]
Approved as to form:
By: for
Veronica Nebb, City Attorney
Resolution NO. XXX-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALLEJO AMENDING THE CAPITAL GRANT AND CONTRIBUTION FUND #221 FISCAL YEAR 2023-2024
BUDGET TO INCREASE REVENUES AND EXPENDITURES IN THE AMOUNT OF $352,000 FOR THE CLEAN CALIFORNIA GRANT AWARD: VALLEJO
DOWNTOWN/GEORGIA STREET CLEAN UP AND BEAUTIFICATION PROJECT WHEREAS, the City of Vallejo is eligible to receive Federal and/or State funding for certain transportation planning-related plans, through the California Department of Transportation;
WHEREAS, the City submitted a grant application to the California Department of Transportation in May 31, 2023 requesting $352,000 to transform downtown high visibility areas with the installation of new pedestrian-backed seating benches, solar lighting, and anti-littering signage; and
WHEREAS, on November 29, 2023, the EDA informed the City that it was awarded a grant in the amount of $
$352,000; and
WHEREAS, the City Council approved and authorized execution of a Restricted Grant Agreement with the California Department of Transportation for the Clean California Local Grant Program on December 19, 2023 and provided notice of intent to amend the FY23/24 Budget; and
NOW THEREFORE, BE IT RESOLVED, that the Council hereby amends the Capital Grant and Contribution Fund #221 budget for Fiscal Year 2023-24 by increasing revenues and expenditures in the amount of $352,000 to accept the California Department of Transportation grant increase award and increase the professional services budget for this project by the same amount.
Adopted by the Council of the City of Vallejo at a meeting held on January 23, 2024 with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________________
ROBERT H. MCCONNELL, MAYOR
ATTEST: _________________________________________
DAWN G. ABRAHAMSON, CITY CLERK
!
"
#!
$##
%&
&#!
'
&
('&#')
(#
&&
#)!
'&#
&
* +
# #
'+##
'
#
&
,
$
!
##
#
#
#
*
)&&#
&
'
'$&&#
!
,
'
'&#'
)' )
-##,
,
# "
$
$
.
#&
'
()
'')/
0#
*
#*
#
$
(
(#
(
!
0
'
(
+&&#
)
&
,
!
0
(
1
(
)
&
,
!
0-#
23+444!
()
()'
#
&
526
!"#$%&#'(&
)
*
+,
)
-
.
/+,
/
7
7
8
8
-
/ !01$111'11
%
*
'')/
0#
*
*#*
#
$
(
(#
*"#
!
0
'
(#
*
+&&#
)
&
,
5
*
+
*
9+9
*.+
*+
!6!
0
##
*
1
'&#!
0
*
1
%
#'
)
&
,
!
0-#
23+444!
*
*'
#
&
526
#8& ( !0$111'11
1
1
1
1
1
1
1
1
1
7
%7
8
8
/ !0$111'11
1
&&
(
:;
&&
(
:
<
*+&
(
/
2)
,*
0 103010!
7
8
8
= "8 >
"
+4
-
5 .
4++'
.
+
.
*4
+66*+5*
,
67
$
8
939'
4++
-+4
4 .
*4'
)+6+
4
+*,
:+*
+
+
:
'
4
;+*
-
+
"$111'
<+
6*
:
4 +
+
"$011$#11'!0
8*4
4
"$01"$111'11'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
,
#
"
5 '
#6
()
'&#
5#
9?96
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
)7
4,
6
66;
4 3
>
;
+*
)
)-+
3
*+
+.
;
+*
3
+.
)7
6 3
4
;
+*
)-+
)
?*
3
>
)-+
+4,
.
4;
?*
3
'7
'
##
&&#
#
( 3
>
-
.
/+,
)-+
3
4
-
.
/+,
)-+
-
.
/+,
.+
?*
3
+-
)
66*+
5
4 3
+-
)
5+
4 3
)
.
+**+
+
4 3
2)
66*+
+
@30A3010!
)
.
+**+
6*
4 3
.
+
#+
#
#
3
2)
)7
2+
8+4
.+
6
5 0!
2
**,
<
4 +4
)
4
-" 7
@
=
7
. A4AB ?+-0@
,
.& 3
,
$ 3
*+35+
4 3
)7
+ @30@3010@
?+
+
+
4 3
4
)-+
+
6+
?*
8
.
=
@:B4:A4A@ C:B4:A4A@
>
*
)-+
D:B4:A4A@
?+
+
6*
4 3
4
*
)-+
*
6
"7
-
8
.
.E33:43:A4A@ %3!13010%
#
#
%
& 7/
7
8
8
= "8
/ 2 %
2)
,*
0 103010!
7
8
8
"
" F
>
F
"
-
E
+4
-
5 .
4++'
4++
-+4
4 .
*4'
)+6+
4
+*,
:+*
+
+
:
'
4
;+*
-
+
"$111'
<+
6*
:
4 +
+
"$011$#11'!0
8*4
4
"$01"$111'11'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
G8 "%
! "
#
&
#
&&
($ F#') '/
H/
F#') '
.*
$/
F#') '5
#
#$
% &6
.*
$
/&
F%&
&
#'+
'
'
##)
$344I
%&
& !
'#( "
5!! #
#
'
'6
)(#( "
5!!
% #
#
'
'6
'
! ' G) 8 8
#
'
I2 I2
" ?
+*
5 -
!1'111 @$1@!'!% "0"$!11'A1 "11B "0"$!11'A1 1B 0 *+
5*
*
-
6*
""'111 ($@1!'11 A"$@!!'11 "11B A"$@!!'11 1B
! *+
*
*
-
6*
#'111 @$#(#'11 @@$A""'11 "11B @@$A""'11 1B
@ /+
5
01'111 "$@%A'&" 0#$!(1'01 "11B 0#$!(1'01 1B
&
!1'111 !&'11 "$1&1'11 "11B "$1&1'11 1B
% "11B
( "11B
A "11B
# "11B
"1 "11B
"" "11B
"0 "11B
"! "11B
"@ "11B
"& "11B
"% "11B
"( "11B
"A "11B
"# "11B
01 "11B
0" "11B
00 "11B
0! "11B
0@ "11B
0& "11B
0% "11B
0( "11B
0A "11B
0# "11B
!1 "11B
!" "11B
!0 "11B
!! "11B
!@ "11B
!& "11B
!% "11B
!( "11B
!A "11B
!# "11B
@1 "11B
@" "11B
@0 "11B
@! "11B
@@ "11B
@& "11B
@% "11B
@( "11B
@A "11B
@# "11B
&1 "11B
&" "11B
&0 "11B
#
'/ 2 AJJ+K@D!44 2 AJJ+K@D!44 2%
'
B
.
/ 3DI @"$%#@'(& @"$%#@'(&
'>
56 2 B3K+@DK!JD 2 B3K+@DK!JD 2%
2)
,*
0 103010!
,
"#()
/
)&
,
526
#') 5 6
&
%&
&
;
+*
4
+4
)
)
)*+$
6
.+
+4
+
)
+*
)
*+
9)
9
3 9
9
# / 2 % 2% 2% 4 I ADI<
)5
6
-
.
/+,
:
.
-./+,3+4
+4
*,
*+ 1
#
/ 2 % 2% 2%
5 6
+*
*+
9
9
3 9
9
# / 2 % 2% 2% 4 I 3DI<
#
&
#
%
&
&
#
,
/ 2 B3K+@@4 2 B3K+@@4 2%
"
'
%
&
-
C
<6*++
+43
+**+
.
6*
5 8
2))+6+
+4
6+6+
-+**
5 4
4
-
.
-
+
.
'
6++
<+6*++
+43
+**+
+
:
4 .
+-
8--
+
6++**,6+6+
.
2)
.4
:
4 .
-
.
+
6+6+
3 *
.
-
67
'
'H/ F <&#
:#
#
##)%
&
/
2)
,*
0 103010!
%
*9
9"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/ #8& (
*
'')/ ?-*,
*
+
6
+4
*
+5+
+;
'
*9
9
#
"
"
*
(:"#(
#
"' 1@3!130@ 1@3!130%
4
6
@A
*
+
6
;
'
'
0 6
-
;
0@
-
0' 1@3!130@ 1@3!130% );4
;*
+-
+4
+;
+
4 *
+
6
-5-43488'
!'
@'
&'
%'
('
A'
#'
"1'
*9
9
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
,
26
4
*
+
6
+;
8
6
-
*D
0@
,
+4*$
"
6
;
.
8 !0$111
0'
!'
5+*
*+35+
!0$111
#
5
)>
#:
6/ !0$111
*
+=
E"
+4
E0
66
.
<6+4
4 *
+
6
66
-
-
;*
.
*
+5+
+8+
+4
+-
+;
$
+
++*
,
;
'
'
/
=
4
+
C
?+=
$
'
;
8-
6
3
6
6-$
*4
6+
;+*+
;+
,-
8=
.
,
*
6'
.*
+*
+
4 <6
.
5-
+='
%
E
##
'L
9
9+
*
99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*
FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*9
9
%
& 7/
9
9
78"
/ 2 BA+444
2)
,*
0 103010!
%
*9
9"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*9
9"
#
%
& 7/
9
9
= "
78"
/
2)
,*
0 103010!
%
*9.9"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*9.9
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*9.9
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*.99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*.FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*.
/
#
*9.9
%
& 7/
9.9
78"
/ 2 %
2)
,*
0 103010!
%
*9.9"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*9.9"
#
%
& 7/
9.9
= "
78"
/ 2%
2)
,*
0 103010!
%
*99"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*99
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*99
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*99
%
& 7/
99
78"
/ 2 %
2)
,*
0 103010!
%
*99"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*99"
#
%
& 7/
99
= "
78"
/ 2%
2)
,*
0 103010!
%
*9"9"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*9"9
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*9"9
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*"99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*"FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*"
/
#
*9"9
%
& 7/
9"9
78"
/ 2 %
2)
,*
0 103010!
%
*9"9"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*9"9"
#
%
& 7/
9"9
= "
78"
/ 2%
2)
,*
0 103010!
%
*9 9"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*9 9
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*9 9
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
* 99
!
#$##
%&
&#
)
F(##&&#
#
'
9
* FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*9 9
%
& 7/
9 9
78"
/ 2 %
2)
,*
0 103010!
%
*9 9"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*9 9"
#
%
& 7/
9 9
= "
78"
/ 2%
2)
,*
0 103010!
%
*979"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*979
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*979
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*799
!
#$##
%&
&#
)
F(##&&#
#
'
9
*7FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*7
/
#
*979
%
& 7/
979
78"
/ 2 %
2)
,*
0 103010!
%
*979"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*979"
#
%
& 7/
979
= "
78"
/ 2%
2)
,*
0 103010!
%
*99"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*99
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*99
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*99
%
& 7/
99
78"
/ 2 %
2)
,*
0 103010!
%
*99"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*99"
#
%
& 7/
99
= "
78"
/ 2%
2)
,*
0 103010!
%
*9=9"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*9=9
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*9=9
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*=99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*=FF
9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*=
/
#
*9=9
%
& 7/
9=9
78"
/ 2 %
2)
,*
0 103010!
%
*9=9"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*9=9"
#
%
& 7/
9=9
= "
78"
/ 2%
2)
,*
0 103010!
%
*99"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*99
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*99
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*FF9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*99
%
& 7/
99
78"
/ 2 %
2)
,*
0 103010!
%
*99"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*99"
#
%
& 7/
99
= "
78"
/ 2%
2)
,*
0 103010!
%
*99"##') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
9+=9
+
+*
.+
+;,
'
'
*
+
6 ;
'
9+=
+;
34
*;
+5*
9
+
-
4;4+*
.
8=
-+
+=
6
-
+*
+=
'
'
5+
66*
.
-
;
'
*'/
*
'')/
*99
#
"
"
*
(:"#(
#
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
*99
%
E
'5
)6 '
=
=
#)
2 #
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
5+*
,
)&
#:
"
&
*
."
)
#:
&
5!! #
#
'
'6
%&
&
5!!
% #
#
'
'6
"'
0'
!'
5+*
*+35+
#
5
)>
#:
6/
*
%
E
##
'L
9
9+
*99
!
#$##
%&
&#
)
F(##&&#
#
'
9
*FF9
!
#
& 7
2 #
%
& 7
2 +;
*
:6
66*
3?+
+*
-
#
*
/
#
*99
%
& 7/
99
78"
/ 2 %
2)
,*
0 103010!
%
*99"
#') '
+4
-
5 .
4++'
4++
-+4
4 .
*4'
-
.
+
6;4
4
-
+
6
*
+,
+4
.
;+*+
66
*,'
6*
4 54
6+=+
$
*4
.+*
+
$
-+**
5 5
4
+*+
-
67
-+
5
+8+4
4
-
+'
'L
(#
)*
+
6;4
+
D
4 9+;
*9
+
.
+**
+;
*
+66*+5*
+-
+='
"
&
(#
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
(#
/
'L 1&'
)*
+
6;4
+
D
4 9
:6
9
+
.
+**
:6
+66*+5*
+-
+='
)&
1&' G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
# 1&'
/
'L
&&#):#
)*
+
6;4
+
D
4 966*,3
+
+*9
+
.
+**
66*,3
+
+*
+66*+5*
+-
+='
)&
&&#:# G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#
&&#):#
/
'L"
)*
+
6;4
+
D
4 9-
9
+
.
+**
-
+66*+5*
+-
+='
)&
"
G) 8 8
2 #
&
5!! #
#
'
'6
%
&
5!!
% #
#
'
'6
"'
0'
!'
@'
&'
%'
('
A'
#'
"1'
""'
"0'
#"
/
*99"
#
%
& 7/
99
= "
78"
/ 2%
2)
,*
0 103010!
CCLGP CYLE 2 INTAKE FORM
1 Directions for Applicants: This optional form contains all the same questions as the main CCLGP Smartsheet application form that you can access from the CCLGP website. Since it is not possible to save progress on the Smartsheet form, you can use this form to store your answers to questions. Then, when you are ready to submit the Smartsheet application form, you can use this form to copy and paste your answers into the Smartsheet form.
Some of the below questions will not appear for you in the Smartsheet form, based on your answers to previous questions in the form. For instance, if you answer “No” to the question “Will this project or activities related to the project be located near, on, under, over or adjacent to Caltrans right of way?”, then several encroachment permit questions will NOT appear in the Smartsheet. Feel free to skip the questions that do not apply to your project.
Completing this form is voluntary. It is only meant as an aide in completing the Smartsheet application form. Do not attach this form to your Smartsheet application. If it is attached, Caltrans will not review it and will only review the answers submitted in the Smartsheet form.
Note that several attachments must be included in the Smartsheet application form before submission. For more information on these, see the Application Instructions on the CCLGP website:
https://cleancalifornia.dot.ca.gov/local-grants/local-grant-program.
1. PROJECT INFORMATION
Primary agency name
CITY OF VALLEJO
Project title
Vallejo Downtown Georgia Street Clean Up and Beautification Caltrans District (enter all that
apply)
4 Project description - provide a
general project description,
more room to describe the
project is provided in the
Narrative attachment.
The proposed project will transform downtown high visibility areas with the installation of new pedestrian backed seating benches to offer comfort along walkways, solar lighting to improve security and safety for all users, including anti-littering signage to support expanded cleanup events to address
excessive litter and debris.
2. LOCATION INFORMATION
Will this project or activities
related to the project be located
near, on, under, over, or
adjacent to Caltrans right of
way?
NO- Self Certification Attached
Will the project need a Caltrans
encroachment permit?
No.
Has your agency started or
completed the Caltrans
Encroachment Permit process?
-
Which step are you at in the
Caltrans Encroachment Permit
process?
-
CCLGP CYLE 2 INTAKE FORM
2 Please provide the Caltrans
Encroachment Permit number
-
Please explain why your project
doesn't need a Caltrans
Encroachment Permit even
though it is on Caltrans right-of-
way
The Project is not on the Caltrans ROW.
Will this project require a
maintenance agreement with
Caltrans?
No.
Will this project need permits
from other agencies?
N/A
Please list out all other agencies
N/A
What is the anticipated
completion date for the other
agency permit(s)?
N/A
Local Information – Local Jurisdiction
(i.e., Project sites NOT located on Caltrans right-of-way) Caltrans District - list all that
apply
4 Street address
212 Georgia Street
City
Vallejo
Zip code
94590
County
Solano
Description
A central downtown pedestrian walkway Georgia Street that crosses Santa Clara, Sacramento, and Virginia Streets.
List any Additional Locations
Caltrans District - list all that
apply
4 Street address
Mare Island Way from Mare Island Causeway to Marin Street City Vallejo
Zip code
94590
County
Solano
CCLGP CYLE 2 INTAKE FORM
3 Location description
Pedestrian pathway along Vallejo Waterfront area
List any additional locations
0 Location Information - State Highway System
(Fill out this information if your project is near, on, under, over or adjacent to Caltrans right-of-way.) Location address
Not applicable or add zeros as needed….
Location description
-
Caltrans District -
County
Caltrans Route or Caltrans
Property or nearest Caltrans
Facility
Begin post mile
End post mile
Additional Locations
Location address
-
Location description
-
Caltrans District
County
Caltrans Route or Caltrans
Property or nearest Caltrans
Facility
Begin postmile
End post mile
List all additional locations
3. SUMMARY BUDGET INFORMATION
CCLGP CYLE 2 INTAKE FORM
4 The grant amount requested $
352,000
Total project cost $
352,000
Minimum required local match
%
25%
Minimum required local match
value $
88,000
Total cash local match $
0 Total in-kind local match $
88.000
Total local match provided $
88,000
Total of other additional funds $
0 If your agency was awarded a
grant in Cycle 1 of the CCLGP,
is this application for a different
project or a different unfunded
part of the same project?
NO
Is your agency submitting more
than one application in Cycle 2?
NO
Please rank each application
based on their priority to the
community
N/A
Is the applicant seeking
advance payment?
N0
4. PRIMARY PROJECT APPLICATION INFORMATION
Contact Name
Oscar Alcantar
Title
Assistant Public Works Director- Maintenance
Organization
City of Vallejo
Phone number
707-648-4105
CCLGP CYLE 2 INTAKE FORM
5 Email address
[email protected]
Agency type
City
Other agency type
N/A
5. PRIMARY PROJECT APPLICANT MARKETING/COMMUNICATIONS CONTACT INFORMATION Contact name
Sidney Wilson
Title
Administrative Analyst II
Organization
City of Vallejo
Phone number
707-648-4576
Email address
[email protected]
6. SUB-APPLICANT INFORMATION (IF APPLICABLE)
Contact name
-
Title
-
Organization
Phone number
Email address
Agency type
Other agency type
Additional Sub-applicants
Contact Name
-
Title
Organization
Phone number
CCLGP CYLE 2 INTAKE FORM
6 Email address
Agency type
Other agency type
List out all additional sub-
applicants
7. PROJECT OVERVIEW
Will this project displace people
experiencing homelessness?
NO.
Indicate which elements are
included in the project
Benches, solar lighting, anti-littering signs, receptacles.
Is this project associated with or
located within two miles of any
other Caltrans projects,
including Clean California
projects?
NO.
If yes, please briefly describe
the Caltrans project, including
the location
0 8. BENEFITS TO UNDERSERVED COMMUNITIES
Is this project located in an
underserved community?
YES.
What percentage of the total
grant request will go towards
benefiting underserved
communities?
100% - The City of Vallejo is designated as a SB535 DAC & an Equity Priority Community per Bay Area Plan 2050 (regional investment plan) – citing high underserved need in Transportation, Housing, Economy, and Environment, is listed in the top 25%- pollution burdened risk factors. “Provide a safe and reliable transportation network that serves all people and respects the environment.”
DIVISION OF LOCAL ASSISTANCE
OFFICE OF INNOVATIVE PROGRAMS
Clean California Local Grant Program
https://cleancalifornia.dot.ca.gov/local-grant-program
Transmittal Letter
1RYHPEHU
Dear Grant Recipient:
Congratulations on being selected as a Cycle 2 awardee for the Clean California Local Grant Program (CCLGP)! A list of Cycle 2 awarded projects can be found here:
https://cleancalifornia.dot.ca.gov/local-grant-program/local-grants-cycle-2. Please note the CCLGP is a reimbursement program. Reimbursable work cannot commence on a project until you have a fully executed (i.e., signed) Restricted Grant Agreement (RGA) with Caltrans. Included in our email is the RGA document for your review and signature. The Agreement will need to be executed by both your agency/Tribe and Caltrans before project work can begin. This letter is not a Notice to Proceed. No funds will be released to a grant awardee until the RGA is fully executed/signed by both parties. Expenses incurred prior to the execution of the grant agreement cannot be reimbursed or counted towards any local match requirements for a project.
In addition to the RGA, an Amendment to the Grant Agreement may be included for your review and signature based on previous discussions between your agency/Tribe and your District CCLGP Grant Manager. We encourage you to continue to reach out to your District CCLGP Grant Manager with any questions you may have on these proposed changes to the Grant Agreement. If the Amendment is not included for your review, this is not applicable to your project.
A complete RGA package, that includes the following list of documents, will need to be returned to your District CCLGP Grant Manager before the RGA can be fully executed by Caltrans. Copies of forms that need to be completed and samples of documents have been emailed with this letter.
x RGA signed by authorized signatory as noted in the agency resolution (see page 2 for details on the agency resolution).
x If applicable, amendment to Grant Agreement signed by authorized signatory. x Checklist of Documents to include in the RGA Package. 1RYHPEHU
“Provide a safe and reliable transportation network that serves all people and respects the environment” x An updated Payee Data Record (form STD. 204) OR W-9 form. Tribes should submit the STD 204 form instead of the W-9 form since they are sovereign nations.
These forms ensure Caltrans has the right information to process grant payments.
If you have not done so already, please email one of these forms to [email protected] and CC your grant manager. In the email, please request confirmation when the form has been processed by Payee Data Records and a Vendor ID has been generated.
If your agency or Tribe has previously completed one of these forms for another Caltrans project and already has a Vendor ID, please submit this form again to [email protected], to ensure that Caltrans has the most up to date information for your agency/Tribe and that it will receive reimbursements in a timely manner.
While completing a form, if you decide to include a Social Security Number (SSN#) instead of the other Tax Identification Numbers, please black the SSN# out, and once the form is received, Payee Data Records will call your agency for the SSN#.
x An agency (i.e., Board, City Council, or Tribal Government) resolution or similar approval document approving the project and authorizing the agency/Tribe to execute the restricted grant agreement with the State of California, Department of Transportation. A sample resolution has been sent with this letter that you can complete with your agency or Tribe’s information and present to your agency/Tribe for approval. Note, some local agencies have a blanket resolution authorizing it to receive state funds and identifying specific managers to sign contracts up to a certain dollar amount. If that applies to your agency/Tribe, you can provide this blanket resolution that authorizes the person signing the RGA instead. In general, if you have an existing resolution that you would like to use instead of the sample resolution provided, please reach out to your District Grant Manager to confirm that it meets the criteria for an agency or tribal resolution.
Also, if you already submitted a resolution with your grant application, please confirm with your District Grant Manager that it meets the criteria for a resolution and that it is still accurate/applies.
x If requesting reimbursement for indirect costs, an approval letter(s) of the indirect cost rate for the fiscal year(s) that your agency/Tribe will be claiming indirect costs from either Caltrans or the federal cognizant agency must be provided.
See page 29 of the Cycle 2 Program Guidelines and the Caltrans Internal Audits Office (CIAO) website for details: https://dot.ca.gov/programs/audits.
To ensure the success of your project, please note the following:
1RYHPEHU
“Provide a safe and reliable transportation network that serves all people and respects the environment” x The Clean California Local Gran Program (CCLGP) homepage is located here:
https://cleancalifornia.dot.ca.gov/local-grant-program. Resources, including the Cycle 2 Program Guidelines, are available to awardees from this main page.
Please re-familiarize yourself with the Grant Guidelines. They will be included in the RGA package as an attachment.
x Invoicing must occur on a regular and timely basis. This is no more frequently than monthly and no less frequently than every six months for projects not requesting advance payments. If your agency or Tribe requested an advance payment, your agency/Tribe shall invoice monthly (refer to the section “Advance Payment Process” of the Program Guidelines). Awardees who requested advance payment will be receiving instructions on how to complete an invoice for this payment, when they receive the executed grant agreement and Notice to Proceed.
x For an item to be reimbursed, it must have been included in the project’s Scope, Cost, and Schedule, align with the Program Guidelines (see the sections “Eligible Activities and Expenses” and “Ineligible Activities and Expenses”), and comply with 2 Code of Federal Regulations (CFR), Part 200.
x If requesting reimbursement of funds to be electronically deposited directly to the agency or Tribe’s account, please complete the Electronic Funds Transfer Document (FA-2656). Note that participation in the EFT program is limited to local agencies that do not have delinquent account receivables with Caltrans. The Federal Employer Identification Number (FEIN #) can be listed on this form. If the SSN# is listed instead, please black this out, and once the form is received, Payee Data Records will call the requestor for the Social Security Number. Mail original form with wet signatures, along with a voided check or a bank reference number, directly to:
Division of Accounting – MS 33
Attn: Suet Wong/Payee Data Records
P.O. Box 168043
Sacramento, CA 95816
It is recommended that when submitting the original form, you include a note requesting confirmation that this form has been processed. Note that it can take up to 30 days between when the form is submitted and when funds can be transferred electronically.
x Quarterly Progress Reports are to be submitted to Caltrans for review in a timely and accurate manner. Your District CCLGP Grant Manager will provide your 1RYHPEHU
“Provide a safe and reliable transportation network that serves all people and respects the environment” agency/Tribe instructions on when and how to submit these closer to when the first report will be due.
x The project must be completed, open to the public, and/or all capital funds expended by June 30, 2026. To ensure that the project delivery deadline is met, please ensure you have completed or are close to completing all applicable environmental clearances such as CEQA or NEPA. Also, please verify that any Caltrans encroachment permits or other applicable permits from other agencies have been obtained or are close to being obtained, to ensure that the project delivery deadline will be met.
x Final Delivery Reports and invoicing must be submitted to Caltrans no later than November 1, 2026. The final invoice will be paid upon submission and acceptance of the Final Delivery Report.
x Projects may be subject to an audit by Caltrans to evaluate the following:
o Performance of the project
o Whether project costs incurred and reimbursed are compliant with the following:
Executed RGA and/or approved amendment(s)
State and Federal laws and regulations
Contract provisions
Program Guidelines
Approved Indirect Cost Rate
o Consistency with project scope, schedule, benefits, and project outcomes described in the RGA, approved project application, and/or approved amendment(s).
If you have any questions about the RGA or the CCLGP, please contact your District Grant Manager, ,GD7XDWLGDNZRQJ#GRWFDJRY. We look forward to working with you!
Sincerely,
Gretchen Chavez
Caltrans Division of Local Assistance
Chief, Office of Innovative Programs
Clean California Local Grant Program
1RYHPEHU
“Provide a safe and reliable transportation network that serves all people and respects the environment” Enclosed:
Restricted Grant Agreement
Original Grant Application
If applicable, Amendment to Grant Agreement
RGA Checklist
STD 204 Form and W-9 Form
Agency Resolution
CCLGP Guidelines
Electronic Funds Transfer Document (FA-2656)
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
Clean California Local Grant Program (State)
Restricted Grant Agreement
This Restricted Grant Agreement (RGA), between the State of California acting by and through its Department of Transportation, referred to herein as CALTRANS, and the CITY OF VALLEJO, hereinafter referred to as AGENCY, will commence on September 15, 2023, or upon approval by CALTRANS, whichever occurs later. This RGA is of no effect unless approved by CALTRANS.
AGENCY shall not receive payment for work performed prior to approval of this RGA and before receipt of Notice to Proceed from CALTRANS. This RGA shall expire on December 31, 2026.
Recitals
1. Under this RGA, CALTRANS intends to convey State restricted grant funds to AGENCY, pursuant to Budget Act Line Item 2660-130-0001, who will implement the project pursuant to the attached Approved Grant Application and Amendment(s) to Grant Application, Attachment III under the terms, covenants, and conditions of this RGA.
2. CALTRANS and AGENCY intend that only funds that are authorized as restricted grants will be subject to this RGA, and that no funds that should be the subject of a Joint Powers Agreement, Interagency Agreement, or other non-grant agreement shall be subject to this RGA.
Now, Therefore, based upon the terms, covenants, and conditions of this RGA, the parties agree as follows:
Section I
AGENCY Agrees:
To timely and satisfactorily complete all Project work described in Attachment III (“Project Work”) within the project budget and in accordance with the items of this RGA.
Section ll
CALTRANS Agrees:
That when conducting an audit of the costs claimed by AGENCY under the provisions of this RGA, to conduct the audit in accordance with applicable laws and regulations.
Section lII
It Is Mutually Agreed:
1. Under this RGA, CALTRANS will convey State grant restricted funds to AGENCY, pursuant to Budget Act Line Item 2660-130-0001, and AGENCY will use the funds to only conduct the scope of work identified in this agreement and authorized by Streets and Highway Code section 91.41. The funds subject to this RGA must be identified as available to a public entity that is responsible for implementing the scope of work authorized under the Clean California Local Grant Program in CALTRANS’ budget, and AGENCY represents and warrants that it is a public entity that is responsible for implementing the scope of work authorized under the Clean California Local Grant Program.
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
2. Under this restricted grant, funds may be only used for the purposes set forth in this RGA, AGENCY Resolution (Attachment IV), Approved Grant Application and Amendment(s) to Grant Application (Attachment III), and the Grant Program Guidelines (Attachment I), and the funds may only be used for costs and expenses that are directly related to such purpose.
3. AGENCY shall perform all the duties and obligations described in the Vallejo Downtown Georgia Street Clean Up and Beautification project, hereinafter “Project”, subject to the terms and conditions of this RGA and Approved Grant Application and Amendment(s) to Grant Application (Attachment III), which are attached hereto as Attachment III.
4. The resolution authorizing AGENCY to execute this RGA pertaining to the above-described Project is attached hereto as Attachment IV.
5. AGENCY agrees that it is not requesting an advance payment, and that it may not hereafter request an advance payment.
6. All services performed by AGENCY pursuant to this RGA shall be subject to and performed in accordance with California Streets and Highways Code §91.41 including, but not limited to, Government Code Section 14460(a)(1), as well as all applicable Federal, State, and Local laws, regulations, and ordinances, all applicable CALTRANS policies and procedures, and all applicable CALTRANS published manuals, including, but not limited to, the Grant Program Guidelines (Attachment I).
California Government Code Section 14460(a)(1) provides: “The department [CALTRANS], and external entities that receive state and federal transportation funds from the department, are spending those funds efficiently, effectively, economically, and in compliance with applicable state and Federal requirements. Those external entities include, but are not limited to, private for profit and nonprofit organizations, local transportation agencies, and other local agencies that receive transportation funds either through a contract with the department or through an agreement or grant administered by the department.”
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
7. Project funding is as follows:
Fund Title* Fund Source Dollar Amount
Clean California Local Grant
Funds
State General Fund (0001)
Budget Item 2660-130-0001
State Program Code 20.30.010.900
FY 2023/24 $352,000.00
Cash Local Match Agency Provided $0.00
Value of Third-Party In-Kind
Contributions
Agency Provided $88,000.00
Total of Local Funds Agency Provided $0.00
Total of other fund sources
(not in-kind contributions)
Agency Provided $0.00
Total Participating Costs $440,000.00
Total Non-Participating Costs $0.00
Total Project Costs $440,000.00
Notes: *Means the amounts in this column only include participating costs.
No in-kind contributions may be made unless the amount and type of the contribution is identified above.
For Caltrans Use Only
I hereby Certify upon my own personal knowledge that budgeted funds are available for encumbrance.
Jie Chen 11/28/2023 $352,000.00
Accounting Officer Printed
Name
Accounting Officer
Signature
Date Amount Certified
8. This RGA is exempt from the legal review and approval by the Department of General Services, pursuant to Legal Opinions of the Attorney General: 58 Ops. Cal. Atty. Gen. 586 (1975), 63 Ops.
Cal. Atty. Gen. 290 (1980), 74 Ops. Cal. Atty. Gen. 10 (1991), and 88 Ops. Cal. Atty. Gen. 56.
9. Notification of Parties
a. AGENCY’s Project Manager for Project is Oscar Alcantar, 707-648-4105. b. CALTRANS’ District Grant Manager is Ida Tu, 510-496-9069. “District Grant Manager” as used herein includes his/her designee.
c. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and received by the parties at their respective addresses:
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
City of Vallejo
Attention: Oscar Alcantar, Assistant Public Works Director Phone Number: (707) 648-4105
Email: [email protected]
555 Santa Clara Street,
Vallejo, California 94565
California Department of Transportation
District 4/Division of Maintenance
Attention: Ida Tu, Senior Transportation Engineer
Phone Number: (510) 496-9069
Email: [email protected]
111 Grand Avenue
Oakland, California 94612
10. Period of Performance
a. Reimbursable work under this RGA shall begin no earlier than on September 15, 2023, following the written approval of CALTRANS and AGENCY’s receipt of the Notice to Proceed letter of this RGA by CALTRANS. All reimbursable work shall terminate no later than June 30, 2026. Project closeout and final invoicing to CALTRANS must be submitted no later than November 1, 2026. Work incurred after June 30, 2026 will not be reimbursed. Payment shall be forfeit for any and all invoicing submitted to CALTRANS after November 1, 2026.
Notwithstanding the foregoing, Caltrans will reimburse for actual close out costs incurred by AGENCY through November 1, 2026 (which, in total, shall not exceed 5% of the grant award). b. If requested by the CALTRANS District Grant Manager, AGENCY will attend a kickoff meeting with CALTRANS to be scheduled within one (1) week from receipt of Notice to Proceed sent by CALTRANS.
11. Changes in Terms/Amendments
This Agreement may only be amended or modified by mutual written agreement of the parties.
12. Cost Limitation
a. The maximum total amount granted and reimbursable to AGENCY pursuant to this RGA by CALTRANS shall not exceed $352,000.00.
b. It is agreed and understood that the CCLGP funds are limited to the amount granted.
CALTRANS will only reimburse the cost of services actually incurred in accordance with the provisions of this RGA and as authorized by the CALTRANS District Grant Manager at or below that fund limitation established herein.
13. Termination
a. CALTRANS reserves the right to terminate this RGA upon written notice to AGENCY at least 30 days in advance of the effective date of such termination in the event CALTRANS determines (at its sole discretion) that AGENCY failed to proceed with Project Work in accordance with the terms of this RGA. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all allowable, authorized, and non-cancelled costs up to the date of termination.
AGENCY shall return any unused advance amounts which cannot be supported by eligible expenditure documentation.
b. This RGA may be terminated by either party for any reason by giving written notice to the other City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
party at least 30 days in advance of the effective date of such termination. In the event of termination for convenience, CALTRANS will reimburse AGENCY for all costs that are expressly allowable, pre-authorized in writing, and non-cancellable, up to the date of termination. c. AGENCY has 60 days after the Termination Date to submit accurate invoices to CALTRANS to make final allowable payments for Project costs in accordance with the terms of this RGA.
Failure to submit invoices within this period of time shall result in a waiver by AGENCY of its right to reimbursement of expended costs. Costs that are reimbursed and later determined to be ineligible for reimbursement shall be returned by AGENCY to CALTRANS.
14. Budget Contingency Clause
a. It is mutually agreed that if the US Congress or the State Legislature fail to appropriate or allocate funds during the current year and/or any subsequent years covered under this RGA do not appropriate sufficient funds for the program, this RGA shall be of no further force and effect.
In this event, CALTRANS shall have no liability to pay any funds whatsoever to AGENCY or to furnish any other considerations under this RGA and AGENCY shall not be obligated to perform any provisions of this RGA.
b. If funding for any fiscal year is reduced or deleted by US Congress or State Legislature for purposes of this program, CALTRANS shall have the option to either terminate this RGA with no liability occurring to CALTRANS, or offer an RGA Amendment to AGENCY to reflect reduced amount.
15. Payment and Invoicing
a. AGENCY, its contractors, subcontractors, and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP) and any standards specified by the source of funds, to enable the determination of incurred costs at interim points of completion, and to provide support for reimbursement payment vouchers or invoices.
b. The method of payment for this RGA will be based on the actual allowable costs that are incurred in accordance with the provisions of this RGA and in the performance of the Approved Grant Application and Amendment(s) to Grant Application (Attachment III) . CALTRANS will
reimburse AGENCY for expended actual allowable direct costs, and including, but not limited to, labor costs, travel, and contracted consultant services costs incurred by AGENCY in performance of the Project Work. Indirect costs are reimbursable only if the AGENCY has identified the estimated indirect cost rate in Attachment II and an approved Indirect Cost Allocation Plan or an Indirect Cost Rate Proposal as set forth in Section III–Cost Principles, Item 16d. The total cost shall not exceed the cost reimbursement limitation set forth in Section III–Cost Limitations, Item 11a. Actual costs shall not exceed the estimated wage rates, labor costs, travel, and other estimated costs and fees set forth in Attachment III without an amendment to this RGA, as agreed between CALTRANS and AGENCY. c. Reimbursement of AGENCY expenditures will be authorized only for those allowable costs actually incurred by AGENCY in accordance with the provisions of this RGA and in the performance of Project Work. AGENCY must not only have incurred the expenditures on or after the start date and the issuance of the Notice to Proceed letter for this RGA and before the Expiration Date but must have also paid for those costs to claim any reimbursement. d. The AGENCY indirect cost rate must be approved in writing by the California Department of City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
Transportation Independent Office of Audits and Investigations or federal cognizant agency before any reimbursement payment is made by CALTRANS to AGENCY for such cost. e. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Human Resources for similar employees (i.e. non-represented employees) unless written verification is supplied that government hotel rates were not then commercially available to AGENCY, its subrecipients, contractors, and/or subcontractors, at the time and location required as specified in the California Department of Transportation's Travel Guide Exception Process at the following link: https://travelpocketguide.dot.ca.gov/.
Also see website for summary of travel reimbursement rules. f. AGENCY shall submit invoices to CALTRANS at least every six months, but no more frequently than monthly, in arrears upon completion of project tasks, milestone and/or deliverables in accordance with the Project Timeline in Attachment III to the satisfaction of CALTRANS District Grant Manager. Invoices shall reference this RGA Number and shall be signed and submitted to CALTRANS District Grant Manager, as stated in Section III–Notification of Parties, Item 8c. g. Invoices shall be complete with all of the following sections in the invoice completed:
1) Section 1: Invoice
2) Section 2: Indirect Cost Calculation, if the AGENCY is seeking reimbursement for indirect costs
3) Section 3: Billing Summary
4) AGENCY shall submit a completed detailed contractor award package, including final cost estimates, to CALTRANS after the project has been awarded to the contractor. The award package shall be submitted to CALTRANS with the first invoice that the AGENCY is seeking reimbursement for the contractor for.
h. Incomplete or inaccurate invoices shall be returned to the AGENCY unapproved for correction.
Failure to submit invoices on a timely basis may be grounds for termination of this RGA for material breach per Section III–Termination, Item 12.
i. CALTRANS will reimburse AGENCY for all allowable Project costs at least every 6 months, but no more frequently than monthly, in arrears as promptly as CALTRANS fiscal procedures permit upon receipt of an itemized signed invoice.
j. The RGA Expiration Date refers to the last date for AGENCY to incur valid Project costs or credits and is the date this RGA expires. AGENCY has until November 1, 2026 to make final allowable payments to Project contractors or vendors, and submit the Project’s Final Report, as defined in Attachment I and a final invoice to CALTRANS for reimbursement for allowable Project costs. Any unexpended Project funds not invoiced by the 60th day will be reverted and will no longer be accessible to reimburse late Project invoices contractor. k. The final invoice will be paid upon submission by AGENCY to CALTRANS and acceptance by CALTRANS of the Final Delivery Report. Complete final delivery reports and invoices must be submitted to CALTRANS by November 1, 2026.
16. Local Match Funds
a. AGENCY shall contribute not less than a proportional cash amount toward the services described herein on a monthly or 6-month basis. Notwithstanding the foregoing, to the extent that in-kind contributions are permitted and identified under this RGA, Section III–Project City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
Funding, Item 6, the contributions may be counted as cash only when they are actually received by the AGENCY and confirmed by CALTRANS. Except where expressly allowed in writing herein, reimbursement of credits for local matching funds and in-kind contributions will be made or allowed only for work performed on and after the initial date of this Agreement and on or before June 30, 2026.
b. AGENCY agrees to contribute the statutorily required local contribution of matching funds if any is specified within this RGA or in any Attachment hereto, toward the actual cost of the services described in Attachment III. AGENCY shall contribute not less than its required match amount toward the services described herein. Local cash and in-kind match requirements can be found in the Grant Program Guidelines (Attachment I); but AGENCY must fully satisfy the local cash and in-kind match amount and percentage identified in Section III, Paragraph 7 with the final invoice.
17. Quarterly Progress Reporting
a. AGENCY shall submit written quarterly progress reports to the CALTRANS District Grant Manager to determine if AGENCY is performing to expectations, on schedule, within funding cost limitations, communicating interim findings, and to afford occasions for airing difficulties respecting special problems encountered so that remedies can be developed.
18. Cost Principles
a. AGENCY agrees to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. AGENCY agrees, and will assure that its contractors, sub-recipients, in-kind contributors, and subcontractors will be obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual Project cost items and (b) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Every sub-recipient receiving Project funds as a sub-recipient, contractor, or subcontractor under this RGA shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards to the extent applicable. c. Any Project costs for which AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, and/or Part 48, Chapter 1, Part 31, are subject to repayment by AGENCY to CALTRANS. Should AGENCY fail to reimburse moneys due CALTRANS within 30 days of discovery or demand, or within such other period as may be agreed in writing between the parties hereto, CALTRANS is authorized to intercept and withhold future payments due AGENCY from CALTRANS or any third-party source, including, but not limited to, the State Treasurer, the State Controller, or any other fund source.
d. Prior to AGENCY seeking reimbursement of indirect costs, AGENCY must have identified estimated indirect cost rate in Attachment II, prepare and submit annually to CALTRANS for review and approval an indirect cost rate proposal and a central service cost allocation plan (if any) in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 5 of the Local Assistance Procedures Manual which may be accessed at: https://dot.ca.gov/-/media/dot- City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
media/programs/local-assistance/documents/lapm/ch05.pdf. e. AGENCY agrees and shall require that all its agreements with consultants and subrecipients contain provisions requiring adherence to this section in its entirety except for section c, above.
19. Americans with Disabilities Act
By signing this Agreement, AGENCY assures CALTRANS that in the course of performing Project Work, it will fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, as amended, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA (42 USC Section 12101 et seq.).
20. Iran Contracting Act and State of California Executive Order N-6-22 AGENCY must complete and submit to CALTRANS the Iran Contracting Act Certification certifying that AGENCY’S proposed contractor is not on the most current DGS list of Entities Prohibited from Contracting with Public Entities in California per the Iran Contracting Act, 2010 (https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List- Folder/List-of-Ineligible-Businesses), before the Agreement has been executed, unless the proposed contractor is exempted from the certification requirement by Public Contract Code Section 2205(c) or (d). If claiming an exemption, the proposed contractor shall provide written evidence that supports an exemption under Public Contract Code Section 2203(c) or (d) before execution of the Agreement. Additionally, and to the extent applicable, AGENCY shall adhere to State of California Executive Order N-6-22, issued on March 4, 2022, with regard to proposed contractor.
21. Indemnification
a. Neither CALTRANS nor any officer or employee thereof is responsible for any injury, damage, or liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, its contractors, its subrecipients, or its subcontractors under or in connection with any work, authority, or jurisdiction conferred upon AGENCY under this RGA.
It is understood and agreed that AGENCY shall fully defend, indemnify, and save harmless CALTRANS and all of CALTRANS’ officers and employees from all claims, suits, or actions of every name, kind, and description brought forth under, including, but not limited to, tortuous, contractual, likeness statutes under California Civil Code §§ 3344 and 3344.1, inverse condemnation, or other theories or assertions of liability occurring by reason of anything done or omitted to be done by AGENCY, its officers, employees, agents, contractors, subrecipients, or subcontractors under this RGA.
b. AGENCY agrees to fully defend, indemnify, and save harmless CALTRANS and all of its officers and employees from any and all claims, lawsuits, or legal actions, including reasonable attorneys’ fees and legal costs, relating to intellectual property claims arising from or related to the Project and/or any work procured under this RGA, including but not limited to claims based on (1) U.S. federal or state trademark infringement laws, (2) patent infringement laws (3) 17 U.S.C. §§ 101-810 (the Copyright Act of 1976, as modified), (4) 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”), (5) 17 U.S.C. § 113, (6) California Civil Code § 987 (the California Art Preservation Act), California Civil Code §989, or (7) any other rights arising under U.S. federal or state laws or under the laws of any other country that conveys rights and protections of the same nature as those conveyed under 17 U.S.C. §106A(a) and California Civil Code §987, including intellectual property claims arising from or related to breach of contract, inverse condemnation, conversion, and/or taking of property.
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
22. Nondiscrimination Clause (2 CCR 11105 Clause b)
a. During the performance of this RGA, the AGENCY, its contractors, its subrecipients, and its subcontractors shall not deny the contract's benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. AGENCY shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. b. AGENCY shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code Sections 12900 et seq.), the regulations promulgated thereunder (California Code of Regulations, Title 2, Sections 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code Sections 11135-11139.5), and the regulations or standards adopted by CALTRANS to implement such article. c. AGENCY shall permit access by representatives of the Department of Fair Employment and Housing and CALTRANS upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours' notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or CALTRANS shall require to ascertain compliance with this clause.
d. AGENCY and its contractors, its sub-recipients, and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
e. AGENCY shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under this RGA.
23. Retention of Records/Audits
a. AGENCY, its contractors, subcontractors, and sub-recipients, agree to comply with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
b. AGENCY, its contractors, subcontractors, and sub-recipients shall establish and maintain an accounting system and records that properly accumulate and segregate incurred Project costs and matching funds by line. The accounting system of AGENCY, its contractors, all subcontractors, and sub-recipients shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of AGENCY, its contractors, subcontractors, and sub-recipients connected with Project performance under this RGA shall be maintained for a minimum of three (3) years from the date of final payment to AGENCY and shall be held open to inspection, copying, and audit by representatives of CALTRANS, the California State Auditor, and auditors representing the federal government. Copies thereof will be furnished by AGENCY, its contractors, its City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
subcontractors, and sub-recipients upon receipt of any request made by CALTRANS or its agents. In conducting an audit of the costs and match credits claimed under this RGA, CALTRANS will rely to the maximum extent possible on any prior audit of AGENCY pursuant to the provisions of State and AGENCY law. In the absence of such an audit, any acceptable audit work performed by AGENCY’s external and internal auditors may be relied upon and used by CALTRANS when planning and conducting additional audits. c. For the purpose of determining compliance with applicable State and AGENCY law in connection with the performance of AGENCY’s contracts with third parties pursuant to Government Code Section 8546.7, AGENCY, AGENCY’s sub-recipients, contractors, subcontractors, and CALTRANS, shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire Project period and for three (3) years from the date of final payment to AGENCY under this RGA. CALTRANS, the California State Auditor, or any duly authorized representative of CALTRANS or the United States Department of Transportation, shall each have access to any books, records, and documents that are pertinent to a Project for audits, examinations, excerpts, and transactions, and AGENCY shall furnish copies thereof if requested. d. AGENCY, its subrecipients, contractors, and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by CALTRANS, for the purpose of any investigation to ascertain compliance with this RGA.
e. Additionally, all grants may be subject to a pre-award audit prior to execution of this RGA to ensure AGENCY has an adequate financial management system in place to accumulate and segregate reasonable, allowable, and allocable costs.
f. Any contract with a contractor, subcontractor, or sub-recipient entered into as a result of this RGA shall contain all the provisions of this article.
24. Adjudication of Facts in Disputes
a. Any dispute concerning a question of fact arising under this RGA that is not disposed of by agreement shall be decided by the CALTRANS Contract Officer, who may consider any written or verbal evidence submitted by AGENCY. The CALTRANS Contract Officer shall issue a written decision within 30 days of receipt of the dispute. If AGENCY rejects the decision of the CALTRANS Contract Officer, AGENCY can pursue any and all remedies authorized by law. Neither party waives any rights to pursue remedies authorized by law.
b. Neither the pendency of a dispute nor its consideration by CALTRANS Contract Officer will excuse AGENCY from full and timely performance in accordance with the terms of this RGA.
25. INTENTIONALLY DELETED
26. Third-Party Contracts
a. AGENCY shall perform the work contemplated with resources available within its own organization and no portion of the work shall be contracted to a third party without prior City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
written notification by the CALTRANS District Grant Manager unless expressly included (subrecipient identified) in Attachment III as Project Work. b. All State-government-funded procurements must be conducted using a fair and competitive procurement process. AGENCY may use its own procurement procedures as long as the procedures comply with the local AGENCY’s laws, rules, and ordinances governing procurement and all applicable provisions of State law, including, without limitation, the requirement that the AGENCY endeavor to obtain at least three (3) competitive bids for solicitation of goods, services, and consulting services (see Public Contract Code, Section 2000 et. seq.); a qualifications-based solicitation process, for which statements of qualifications are obtained from at least three (3) qualified firms for architecture and engineering services (see Government Code, Section 4525 et. seq. and Chapter 10 of the Caltrans Local Assistance Procedures Manual); and, the applicable provisions of the State Contracting Manual (SCM), Chapter 5, which are not inconsistent with this Item 26, Third- Party Contracts. The SCM can be found at the following link:
https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources- List-Folder/State-Contracting. Chapter 10 of the Caltrans Local Assistance Procedures Manual can be found at the following link: https://dot.ca.gov/programs/local- assistance/guidelines-and-procedures/local-assistance-procedures-manual-lapm. c. Any contract entered into as a result of this RGA shall contain all the provisions stipulated in this RGA to be applicable to AGENCY’s sub-recipients, contractors, and subcontractors.
Copies of all agreements with sub-recipients, contractors, and subcontractors, must be able to be provided upon request to the CALTRANS District Grant Manager. d. CALTRANS does not have a contractual relationship with the AGENCY’s subrecipients, contractors, or subcontractors, and the AGENCY shall be fully responsible for all work performed by its subrecipients, contractors, or subcontractors. e. Prior notification in writing by the CALTRANS District Grant Manager shall be required before AGENCY enters into any non-budgeted sub-agreement. AGENCY shall provide an evaluation of the necessity or desirability of incurring such costs. AGENCY shall retain all receipts for such purchases or services and shall submit them with invoices. f. Any contract entered into by AGENCY as a result of this RGA shall mandate that travel and per diem reimbursements and third-party contract reimbursements to subrecipients, contractors, and subcontractors, will be allowable as Project costs only after those costs are incurred and paid for by the subrecipients, contractors, and subcontractors. Travel expenses and per diem rates for subcontractors shall be reimbursed pursuant to Section III–Payment and Invoicing, Item 14b, above.
27. Drug-Free Workplace Certification
By signing this RGA, AGENCY hereby certifies under penalty of perjury under the laws of California that AGENCY will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code Sections 8350 et seq.) and will provide a Drug-Free workplace by doing all of the following:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(a)(2) to inform employees about all of the following:
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
1) The dangers of drug abuse in the workplace.
2) The person's or organization's policy of maintaining a Drug-Free workplace. 3) Any available counseling, rehabilitation, and employee assistance programs. 4) Penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(a)(3), that every employee who works on the proposed contract or grant:
1) Will receive a copy of the company's Drug-Free policy statement. 2) Will agree to abide by the terms of the company's statement as a condition of employment on the contract or grant.
d. Failure to comply with these requirements may result in suspension of payments under this RGA or termination of this RGA or both, and AGENCY may be ineligible for the award of any future state contracts if CALTRANS determines that any of the following has occurred: (1) AGENCY has made a false certification or, (2) AGENCY violates the certification by failing to carry out the requirements as noted above.
28. Relationship of Parties
It is expressly understood that this agreement is executed by and between two (2) independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party.
29. State-Owned Data
a. AGENCY agrees to comply with the following requirements to ensure the preservation, security, and integrity of State-owned data on portable computing devices and portable electronic storage media:
1) Encrypt all State-owned data stored on portable computing devices and portable electronic storage media using government-certified Advanced Encryption Standard (AES) cipher algorithm with a 256-bit or 128-bit encryption key to protect CALTRANS data stored on every sector of a hard drive, including temp files, cached data, hibernation files, and even unused disk space.
2) Data encryption shall use cryptographic technology that has been tested and approved against exacting standards, such as FIPS 140-2 Security Requirements for Cryptographic Modules.
3) Encrypt, as described above, all State-owned data transmitted from one computing device or storage medium to another.
4) Maintain confidentiality of all State-owned data by limiting data sharing to those individuals contracted to provide services on behalf of the State, and limit use of State information assets for State purposes only.
5) Install and maintain current anti-virus software, security patches, and upgrades on all computing devices used during the course of the Agreement. 6) Notify the CALTRANS District Grant Manager immediately of any actual or attempted violations of security of State-owned data, including lost or stolen computing devices, files, or portable electronic storage media containing State-owned data.
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
7) Advise the owner of the State-owned data, the AGENCY Information Security Officer, and the AGENCY Chief Information Officer of vulnerabilities that may present a threat to the security of State-owned data and of specific means of protecting that State-owned data. b. AGENCY agrees to use the State-owned data only for State purposes under this Agreement. c. AGENCY agrees to not transfer State-owned data to any computing system, mobile device, or desktop computer without first establishing the specifications for information integrity and security as established for the original data file(s) (State Administrative Manual (SAM) Section 5335.1).
30. CALTRANS’ Use of “Before” and “After” Project Photographs a. AGENCY acknowledges it provided a “Before” photograph of the Project with the AGENCY’s application for the Clean California Local Grant Program. AGENCY acknowledges and agrees it must provide an “After” photograph of the Project as part of the close out reporting process.
b. AGENCY warrants it is the copyright owner of the “Before” and “After” Project photographs. c. Neither the “Before” nor “After” Project photographs shall include the faces of any individuals.
d. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the “Before” and “After” Project photographs, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. e. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
31. Limited Grant of Rights to CALTRANS for Use of Educational Programming (“educational programming”) Created or Produced for Project and Visual Art Located Outside of State Right-of- Way (“Artwork”) Created or Produced for Project
a. Educational programming:
i. AGENCY shall obtain from any and all copyright owner(s) of educational programming a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of the educational programming created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
(including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. When applicable, AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
iv. To the extent any logos, including trademarks or service marks, belonging to third parties and/or the AGENCY are used on educational programming created or produced for Project under this RGA, AGENCY agrees to obtain and grant all necessary rights for CALTRANS to use and allow agents of CALTRANS to use the logos in connection with use of the educational programming for non-commercial purposes or State government purposes. This includes but is not limited to reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education and exhibition catalogues or other similar publication. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required. b. Artwork:
i. AGENCY shall obtain from the artist(s), or any other copyright owner(s) of Artwork, a sublicensable, irrevocable, perpetual, royalty-free, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication. AGENCY shall obtain any and all other intellectual property rights necessary to make this grant to CALTRANS as described in this RGA.
ii. AGENCY grants to CALTRANS an irrevocable, perpetual, royalty-free, sublicensable, unlimited, worldwide license to prepare derivative works, make, publish, display, and distribute two-dimensional reproductions and/or copies, digitally and in print, of Artwork created or produced for Project under this RGA, or derivatives thereof, for non-commercial purposes or any State government purposes. This includes, but is not limited to, reproductions used in brochures, media publicity, public outreach campaigns (including television and social media campaigns), education, and exhibition catalogues or other similar publication.
iii. AGENCY shall obtain and provide to CALTRANS any and all documentation CALTRANS reasonably determines is necessary or desirable to perfect the license or sublicense described in this RGA to CALTRANS. This documentation shall be provided to CALTRANS within fifteen (15) days of written notice that this documentation is required.
32. Government Purpose Rights for Inventions
a. Inventions are any idea, methodologies, design, concept, technique, invention, discovery, improvement, or development regardless of patentability made solely by AGENCY or jointly with the AGENCY’s contractor, subcontractor and/or subrecipient during the term of this RGA and in performance of any work under this RGA, provided that either the conception or reduction to practice thereof occurs during the term of this RGA and in performance of work issued under this City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
RGA.
b. CALTRANS will have Government Purpose Rights to any inventions created as a result of the Project. “Government Purpose Rights” are the unlimited, irrevocable, worldwide, perpetual, royalty-free, non-exclusive rights, and licenses to use, modify, reproduce, perform, release, display, create derivative works from, and disclose any said invention. “Government Purpose Rights” also include the right to release or disclose said invention(s) outside CALTRANS for any State government purpose and to authorize recipients to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the invention(s) for any State government purpose. “Government Purpose Rights” do not include any rights to use, modify, reproduce, perform, release, display, create derivative works from, or disclose the invention(s) for any commercial purpose.
33. Additional Intellectual Property Provisions
a. To the extent any intellectual property is created or produced for Project under this RGA, and not covered in other provisions of this RGA, AGENCY agrees to take reasonable steps to ensure that CALTRANS has the rights necessary to allow for use of the intellectual property in a fashion substantially similar to other rights for non-commercial uses and State government purposes described in this RGA.
b. If additional uses are reasonably determined to be needed by CALTRANS for public outreach purposes, AGENCY will obtain rights and grant CALTRANS and its agents said additional rights for use of the “Before” and “After” Project photos, Artwork created or produced for Project under this RGA, and educational programming created or produced for Project under this RGA. The grant will be an irrevocable, non-exclusive, perpetual, royalty-free, sublicensable, unlimited, worldwide license.
c. When requested to so do by AGENCY, all reproductions and/or copies by CALTRANS of “Before” or “After” Project photographs, educational programming, and Artwork shall contain a credit to the Artist/ Copyright owner(s) and a copyright notice in substantially the following form:
© [Artist/Copyright owner’s name, date of publication]. AGENCY bears sole responsibility to promptly notify CALTRANS, in writing, about instances where such accreditation is requested and provide the Artist/ Copyright owner’s name and date of publication. CALTRANS will make reasonable efforts to affix the copyright notice in a timely manner. d. Required disclaimer language for educational programming and Artwork created or produced for Project under this RGA.
i. Educational programming: AGENCY must place a disclaimer statement in a conspicuous manner on the educational programming created or produced for Project under this RGA a disclaimer that states the content of the educational programming does not reflect the official views or policies of CALTRANS. The educational programming does not constitute a standard, specification, or regulation.
ii. Artwork: AGENCY must place a disclaimer statement in a conspicuous manner on or in close proximately to the Artwork created or produced for Project under this RGA a disclaimer statement that the contents of the artwork do not reflect the official views or policies of CALTRANS.
e. Avoidance of Infringement: In performing work under this RGA, AGENCY and its employees agree to avoid designing or developing any items that infringe one or more patents or other intellectual property rights of any third party. If AGENCY or its employees becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY or its employees shall immediately notify CALTRANS in writing. f. Contractors, Subcontractors, and Subrecipients: Through contract with its sub-recipients, contractors, and subcontractors, AGENCY shall affirmatively bind by contract all of its City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
contractors, subcontractors, subrecipients, and service vendors (hereinafter “AGENCY’s Contractor/Subcontractor/Subrecipient”) providing services under this RGA to conform to the provisions of paragraphs 31-33 of this RGA. In performing services under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall agree to avoid designing or developing any items that infringe one (1) or more patents or other intellectual property rights of any third party. If AGENCY’s Contractor/Subcontractor/Subrecipient becomes aware of any such possible infringement in the course of performing any work under this RGA, AGENCY’s Contractor/Subcontractor/Subrecipient shall immediately notify the AGENCY in writing, and AGENCY will then immediately notify CALTRANS in writing.
34. Visual Art Located on California State Right-of-Way AGENCY agrees if Project involves visual art located on California State right-of-way, Project must be submitted and adhere to CALTRANS’ most current Transportation Art Proposal process, policies, guidelines, and requirements. Information regarding CALTRANS’ Transportation Art program can be found at https://dot.ca.gov/programs/design/lap-landscape-architecture-and- community-livability/lap-liv-j-transportation-art. AGENCY bears sole responsibility for ensuring that any Project will be timely submitted through CALTRANS’ Transportation Art Proposal process, approved, and installed prior to any deadlines as required by this RGA. a. AGENCY acknowledges that funds provided by CALTRANS under this RGA shall not be used for maintenance outside of the project time limits as provided in this RGA. b. AGENCY acknowledges that the CALTRANS’ Transportation Art Proposal process requires, among other things, CALTRANS ownership of any tangible visual final artwork, an unlimited, irrevocable copyright assignment to CALTRANS of the final artwork, and waiver of moral rights under California Civil Code § 987 (the California Art Preservation Act) and 17 U.S.C. § 106A(a) (the Visual Artists Rights Act of 1990, “VARA”) of the final artwork. c. AGENCY acknowledges that any submittal to the CALTRANS’ Transportation Art Proposal process includes restrictions on the type of work that can be located on California State right-of- way.
35. Assumption of Risk and Indemnification Regarding Exposure to Environmental Health Hazards In addition to, and not a limitation of, AGENCY’s indemnification obligations contained elsewhere in this Agreement, AGENCY hereby assumes all risks of the consequences of exposure of AGENCY’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm, or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, to any and all environmental health hazards, local and otherwise, in connection with the performance of this Agreement. Such hazards include, but are not limited to, bodily injury and/or death resulting in whole or in part from exposure to infectious agents and/or pathogens of any type, kind, or origin. AGENCY also agrees to take all appropriate safety precautions to prevent any such exposure to AGENCY’s employees, agents, Subcontractors, Subcontractors’ employees, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement. AGENCY also agrees to indemnify and hold harmless CALTRANS, the State of California, and each and all of their officers, agents, and employees, from any and all claims and/or losses accruing or resulting from such exposure. Except as provided by law, AGENCY also agrees that the provisions of this City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
paragraph shall apply regardless of the existence or degree of negligence or fault on the part of CALTRANS, the State of California, and/or any of their officers, agents and/or employees.
36. Mandatory Organic Waste Recycling
It is understood and agreed that pursuant to Public Resources Code Sections 42649.8 et seq., if proposed contractor generates two (2) cubic yards or more of organic waste or commercial solid waste per week, AGENCY shall ensure that the proposed contractor arrange for organic waste or commercial waste recycling services that separate/source organic waste for organic waste recycling. Proposed contractor shall provide AGENCY proof of compliance, i.e., organic waste recycling services or commercial waste recycling services that separate/source organic waste recycling. AGENCY must be able to provide this proof upon request from CALTRANS District Grant Manager.
37. Project Close Out/Closeout Report
a. AGENCY will provide a final close out report to the CALTRANS District Grant Manager no later than November 1, 2026.
CALTRANS reserves the right to inspect the project location prior to approving the final invoice and closeout report.
b. CALTRANS reserves the right to withhold final payment to AGENCY pending receipt and approval of the final closeout report by the CALTRANS District Grant Manager. c. Payments shall be forfeit if invoices are submitted after November 1, 2026.
38. ADA Compliance
All entities that provide electronic or information technology or related services that will be posted online by CALTRANS must be in compliance with Government Code Sections 7405 and 11135 and the Web Content Accessibility Guidelines (WCAG) 2.0 or subsequent version, published by the Web Accessibility Initiative of the World Wide Web Consortium at a minimum Level AA success. All entities will respond to and resolve any complaints/deficiencies regarding accessibility brought to their attention.
39. Prevailing Wages and Labor Code Compliance
AGENCY shall comply with any and all applicable labor and prevailing wage requirements in Labor Code Sections 1720 through 1815 and implementing regulations for any public works or maintenance contracts and subcontracts executed for the AGENCY’s work on or for the Project.
40. In the event of any inconsistency between the provisions which constitute this RGA, the following order of precedence shall apply:
I. This Restricted Grant Agreement (as amended);
II. The CALTRANS Local Grant Program Guidelines;
III. Approved Indirect Cost Rate (if applicable);
IV. Approved Grant Application (as amended); and
V. AGENCY Resolution.
41. Survival
AGENCY’s representations, the indemnification provisions in paragraph 21, intellectual property provisions in paragraphs 30, 31, 32, and 33, and all other provisions which by their inherent character City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
establish ongoing obligations shall remain in full force and effect, regardless of any expiration and/or termination of this RGA.
42. Sanctions
No agreements under this RGA shall be made with individuals and/or entities that are determined to be a target of sanctions by the State of California while such sanctions are in effect.
City of Vallejo
Agreement Number: CCL-5030-074
AMS ADV ID: 0424000113
Section IV
Attachments:
The following attachments are incorporated into, and are made a part of this RGA by this reference and attached hereto.
I. Grant Program Guidelines
II. Approved Indirect Cost Rate (if applicable)
III. Approved Grant Application and Amendm ent(s) to Grant Application (if applicable) IV. AGENCY Resolution
In Witness Whereof, the parties hereto have executed this RGA on the day and year first herein above written:
STATE OF CALIFORNIA
DEPARTMENT OF TRANSPORTATION
CITY OF VALLEJO
By: By:
Printed Name:
Gretchen Chavez
Printed Name:
Title:
Office Chief
Office of Innovative Programs
Division of Local Assistance
Title:
Date: Date:
By:
Printed Name:
Title:
Date:
ACTION ITEM 9.A.
DATE: January 23, 2024
TO: Mayor and Members of the City Council
FROM: Rekha Nayar, Finance Director
SUBJECT: RECEIVE & FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER ANNUAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
RECOMMENDATION
Receive and file the City's Annual Comprehensive Financial Report (ACFR) and other annual reports for the fiscal year ended June 30, 2023.
REASONS FOR RECOMMENDATION
The City is required by Charter Section 721 to have an independent audit of its financial records performed each fiscal year. The audited financial statements for the fiscal year that ended June 30, 2023, have been completed.
BACKGROUND AND DISCUSSION
Each year, the City is required by Charter Section 721 to have an independent audit of its financial records.
For Fiscal Year 2022-23 the City engaged Lance, Soll & Lunghard, LLP (LSL), an independent certified public accounting firm to perform the annual audit of the City of Vallejo and its component units except, Vallejo Flood and Wastewater District.
The Annual Comprehensive Financial Report (ACFR) is a comprehensive document reflecting the financial position of the City and its related component units. The 2022-23 ACFR has been prepared in conformance with Generally Accepted Accounting Principles (GAAP) and with additional requirements for presentation as set by the Government Accounting Standards Board (GASB).
Copies of the ACFR will be available during the meeting for public inspection. An electronic copy of this report has been posted on the city website and can be accessed by using the link provided below.
FY 2022-23 ACFR
A summary of the financial condition of the City is contained in the Transmittal Letter and the Management's Discussion and Analysis (MD&A) of the ACFR. Additional supporting information related to the financial statements can be found in the notes to the financial statements of the ACFR. The following represents the key financial positions and highlights of some of the City's major funds:
The General Fund reflected a total ending fund balance of $64.6 million. Of the total fund balance, $25 million is unassigned. This balance represents 19% of the FY 2023-24 budget, which exceeds the Council's established reserve level of 15% of expenditures.
The Water Fund generated $55.8 million in total revenues during FY 2022-23 to support $47.1 million in total expenses for an overall net increase in net position of $8.7 million. This increase is mainly attributed to strong investment earnings, capital contribution from developers and water rate increases adopted in 2017 and 2019.
Date: January 23, 2024
Subject: RECEIVE & FILE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER ANNUAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Audit Opinion: The independent auditor's report addressed to the council, has an "unmodified" opinion for 2022-23 audit. Such an opinion reflects the auditor's belief that the basic financial statements contained in the ACFR present fairly, in all material aspects, the financial position and the changes in financial position of the City of Vallejo for the year ended June 30, 2023, in accordance with GAAP and various requirements of the GASB.
Report on Internal Control: LSL has identified 2 significant deficiencies in financial reporting and inventory valuation. See Attachment 2.
Auditor Communication Letter: LSL has reported 1 corrected misstatement related to accrual of expenditures during the audit. See Attachment 3.
In addition, the City engaged LSL to perform compliance audits on Measure B/V and Measure P transaction and use tax funds for the FY 2022-23. The audits results are reported in Attachments 4 and 5.
FISCAL IMPACT
The cost of preparing the ACFR and the independent audit was budgeted as part of the FY 2023-24 budget. There is no fiscal impact of this action.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. City of Vallejo ACFR as of June 30, 2023
2. City of Vallejo Auditor Communication Letter
3. City of Vallejo Report on Internal Control
4. City of Vallejo Measure B-V Annual Compliance Report as of June 30, 2023
5. City of Vallejo Measure P Annual Compliance Report as of June 30, 2023
CONTACT
Rekha Nayar, Finance Director (707-648-4592)
[email protected]
EEh>KDWZ
,
E^/s
&/EE/>Z
WKZd
&KZd,
&/^>z
Z
E
:hE
ϯϬ͕ϮϬϮϯ
&,7<2)9$//(-2&$/,)251,$
$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
)RUWKH<HDU(QGHG-XQH
35(3$5('%<7+(
),1$1&('(3$570(17
7+,63$*(,17(17,21$//</()7%/$1.
&,7<2)9$//(-2&$/,)251,$
$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
)RUWKH<HDU(QGHG-XQH
7DEOHRI&RQWHQWV
3DJH
1XPEHU
,1752'8&725<6(&7,21
/HWWHURI7UDQVPLWWDOL &HUWLILFDWHRI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJ[ 3XEOLF2IILFLDOV[L 2UJDQL]DWLRQDO&KDUW[LL
),1$1&,$/6(&7,21
,1'(3(1'(17$8',7256¶5(3257
0$1$*(0(17
6',6&866,21$1'$1$/<6,6
%$6,&),1$1&,$/67$7(0(176
*RYHUQPHQW:LGH)LQDQFLDO6WDWHPHQWV
6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI$FWLYLWLHV
)XQG)LQDQFLDO6WDWHPHQWV
%DODQFH6KHHW±*RYHUQPHQWDO)XQGV
5HFRQFLOLDWLRQRIWKH%DODQFH6KHHWRI*RYHUQPHQWDO)XQGV WRWKH6WDWHPHQWRI1HW3RVLWLRQ
6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHV± *RYHUQPHQWDO)XQGV
5HFRQFLOLDWLRQRIWKH6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG &KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGVWRWKH
6WDWHPHQWRI$FWLYLWLHV
3URSULHWDU\)XQGV
6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ)XQG1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV
)LGXFLDU\)XQGV
6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ 6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ
1RWHVWRWKH)LQDQFLDO6WDWHPHQWV
&,7<2)9$//(-2&$/,)251,$
$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
)RUWKH<HDU(QGHG-XQH
7DEOHRI&RQWHQWV
3DJH
1XPEHU
5(48,5('6833/(0(17$5<,1)250$7,21
6FKHGXOHRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHV± %XGJHWDQG$FWXDO±0DMRU)XQGV
*HQHUDO)XQG +RXVLQJ$XWKRULW\)XQG
&LW\¶V5HWLUHH0HGLFDO%HQHILWV
23(%
6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\
DQG5HODWHG5DWLRV
&LW\¶V5HWLUHH0HGLFDO%HQHILWV
23(%
6FKHGXOHRI&RQWULEXWLRQV
9):'¶V6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\DQG5HODWHG5DWLRV
9):'¶V6FKHGXOHRI&RQWULEXWLRQV
6FKHGXOHRI&KDQJHVLQWKH1HW3HQVLRQ/LDELOLW\DQG5HODWHG5DWLRV
0LVFHOODQHRXV3ODQ
6FKHGXOHRI&RQWULEXWLRQV
0LVFHOODQHRXV3ODQ
6FKHGXOHRI&KDQJHVLQWKH1HW3HQVLRQ/LDELOLW\DQG5HODWHG5DWLRV 6DIHW\3ODQ
6FKHGXOHRI&RQWULEXWLRQV
6DIHW\3ODQ
6FKHGXOHRIWKH3ODQ¶V3URSRUWLRQDWH6KDUHRIWKH1HW3HQVLRQ/LDELOLW\DQG5HODWHG5DWLRVDVRI WKH0HDVXUHPHQW'DWH±&RVW6KDULQJ0XOWLSOH(PSOR\HU'HILQHG%HQHILW3HQVLRQ3ODQ 9):'
6FKHGXOHRI&RQWULEXWLRQV±&RVW6KDULQJ0XOWLSOH(PSOR\HU'HILQHG%HQHILW 3HQVLRQ3ODQ
9):'
6833/(0(17$/,1)250$7,21
1RQPDMRU*RYHUQPHQWDO)XQGV
&RPELQLQJ%DODQFH6KHHWV
&RPELQLQJ6WDWHPHQWVRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHV LQ)XQG%DODQFHV
&RPELQLQJ6FKHGXOHRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHV LQ)XQG%DODQFH%XGJHWDQG$FWXDO±6SHFLDO5HYHQXH)XQGV
6ROLG:DVWH'LVSRVDO)XQG 6WDWH*DV7D[)XQG
&,7<2)9$//(-2&$/,)251,$
$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
)RUWKH<HDU(QGHG-XQH
7DEOHRI&RQWHQWV
3DJH
1XPEHU
&RPPXQLW\'HYHORSPHQW%ORFN*UDQW)XQG +20(3URJUDP)XQG +LGGHQEURRNH&RPPXQLW\6HUYLFHV'LVWULFW)XQG 0DUH,VODQG%DVH5HXVH)XQG 0DUH,VODQG&)')XQG 0DUH,VODQG&)'$
6WDWH
)XQG
0DUH,VODQG&)'%
/RFDO
)XQG +D]PDW5HYROYLQJ)XQG -XVWLFH$VVLVWDQFH*UDQW)XQG
6XSSOHPHQWDO/DZ(QIRUFHPHQW*UDQW)XQG 7UDIILF2IIHQGHU9HKLFOH,PSRXQG3URJUDP)XQG /DQGVFDSH0DLQWHQDQFH'LVWULFWV)XQG 2IILFHRI7UDIILF6DIHW\)XQG 2XWVLGH6HUYLFHV)XQG
$GPLQLVWUDWLYH7UXVW)XQG 6WDWH/DQGV)XQG
1HLJKERUKRRG6WDELOL]DWLRQ3URJUDP)XQG 1DYLJDWLRQ&HQWHU)XQG
1/31XLVDQFH$EDWHPHQW)XQG
6FKHGXOHRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHV
LQ)XQG%DODQFH%XGJHWDQG$FWXDO±&HUWLILFDWHVRI3DUWLFLSDWLRQ)XQG9DULRXV
6FKHGXOHRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHV
LQ)XQG%DODQFH%XGJHWDQG$FWXDO±0F&XQH&ROOHFWLRQ)XQG
,QWHUQDO6HUYLFH)XQGV
&RPELQLQJ6WDWHPHQWRI1HW3RVLWLRQ
&RPELQLQJ6WDWHPHQWVRI5HYHQXHV([SHQVHVDQG
&KDQJHVLQ)XQG1HW3RVLWLRQ
&RPELQLQJ6WDWHPHQWVRI&DVK)ORZV
&XVWRGLDO)XQGV
&RPELQLQJ6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ±$OO&XVWRGLDO)XQGV
&RPELQLQJ6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ± $OO&XVWRGLDO)XQGV
&,7<2)9$//(-2&$/,)251,$
$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
)RUWKH<HDU(QGHG-XQH
7DEOHRI&RQWHQWV
3DJH
1XPEHU
67$7,67,&$/6(&7,21
1HW3RVLWLRQE\&RPSRQHQW
&KDQJHVLQ1HW3RVLWLRQ
)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV
&KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV
$VVHVVHG9DOXHDQG(VWLPDWHG$FWXDO9DOXHRI7D[DEOH3URSHUW\
'LUHFWDQG2YHUODSSLQJ3URSHUW\7D[HV5DWHV
7RS3ULQFLSDO3URSHUW\7D[3D\HUV
3URSHUW\7D[/HYLHVDQG&ROOHFWLRQV
7D[DEOH6DOHVE\&DWHJRU\
7RS3ULQFLSDO6DOHV7D[3D\HUV
5DWLRVRI2XWVWDQGLQJ'HEWE\7\SH
'LUHFWDQG2YHUODSSLQJ'HEW
/HJDO'HEW0DUJLQ,QIRUPDWLRQ
3OHGJHG5HYHQXH&RYHUDJH
'HPRJUDSKLFDQG(FRQRPLF6WDWLVWLFV
7RS3ULQFLSDO(PSOR\HUV
)XOOWLPHDQG3DUWWLPH&LW\(PSOR\HHVE\)XQFWLRQ
2SHUDWLQJ,QGLFDWRUVE\)XQFWLRQ
&DSLWDO$VVHW6WDWLVWLFVE\)XQFWLRQ
OFFICEOFTHEFINANCEDIRECTORȉ555SantaClaraStreetȉVallejoȉCAȉ94590ȉ707.648.4592 'HFHPEHU
7RWKH+RQRUDEOH0D\RU0HPEHUVRIWKH&LW\&RXQFLO
$QG&LWL]HQVRIWKH&LW\RI9DOOHMR&DOLIRUQLD
,W LV RXU SOHDVXUH WR SUHVHQW WR \RX WKH $QQXDO &RPSUHKHQVLYH )LQDQFLDO 5HSRUW $&)5
IRU WKH
&LW\RI9DOOHMR&DOLIRUQLD7KH)LQDQFH'HSDUWPHQWKDVSUHSDUHGWKLV$&)5LQFRQIRUPDQFHZLWKWKHSULQFLSOHVDQG VWDQGDUGVIRUILQDQFLDOUHSRUWLQJVHWIRUWKE\WKH*RYHUQPHQWDO $FFRXQWLQJ6WDQGDUGV%RDUG *$6%
7KLVUHSRUW
SUHVHQWVWKH&LW\RI9DOOHMR
VILQDQFLDOSRVLWLRQDVRI-XQHWKHUHVXOWVRILWVRSHUDWLRQVDQGWKHFDVKIORZV RILWVSURSULHWDU\IXQGVIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFH ZLWK*HQHUDOO\$FFHSWHG$FFRXQWLQJ3ULQFLSOHV
*$$3
5HVSRQVLELOLW\IRUERWKWKHDFFXUDF\RIWKHGDWDDQGWKHFRPSOHWHQHVVDQGIDLUQHVVRIWKHSUHVHQWDWLRQLQFOXGLQJDOO GLVFORVXUHVUHVWVZLWKWKH&LW\7RWKHEHVWRIRXUNQRZOHGJHZHEHOLHYHWKHGDWDDVSUHVHQWHGLVDFFXUDWHLQDOO PDWHULDODVSHFWV,WLVSUHVHQWHGLQDPDQQHUGHVLJQHGWRIDLUO\VHWIRUWKWKH&LW\ VILQDQFLDOSRVLWLRQDQGFKDQJHVLQ
ILQDQFLDOSRVLWLRQ$OOGLVFORVXUHVQHFHVVDU\WRHQDEOHWKHUHD GHUWRJDLQDQXQGHUVWDQGLQJRIWKH&LW\ VILQDQFLDO
DIIDLUVKDYHEHHQLQFOXGHG
/DQFH6ROO /XQJKDUG//3DIXOO\OLFHQVHGSXEOLFDFFRXQWLQJILUPTXDOLILHGWRSHUIRUPDXGLWVRIWKHVWDWHDQGORFDO JRYHUQPHQWVZLWKLQWKH6WDWHRI&DOLIRUQLDKDYHDXGLWHGWKH&L W\ VEDVLFILQDQFLDOVWDWHPHQWV7KHLQGHSHQGHQW
DXGLW
VJRDOZDVWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKH&LW\ VEDVLFILQDQFLDOVWDWHPHQWVIRUWKHILVFDO\HDUHQGHG -XQHDUHIUHHRIPDWHULDOPLVVWDWHPHQW7KHLQGHSHQGH QWDXGLWRUV UHSRUWLVSUHVHQWHGDVWKHILUVW
FRPSRQHQWRIWKHILQDQFLDOVHFWLRQRIWKLVUHSRUW
0DQDJHPHQW
V'LVFXVVLRQDQG$QDO\VLV
0' $
SURYLGHVDQDUUDWLY HLQWURGXFWLRQRYHUYLHZDQGDQDO\VLVWR DFFRPSDQ\WKHEDVLFILQDQFLDOVWDWHPHQWV7KLVOHWWHURIWUDQVP LWWDOLVGHVLJQHGWRFRPSOHPHQWWKH0' $DQG VKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW7KH0' $FDQEHIRXQGLPPHGLDWHO\IROORZLQJWKHUHSRUWRIWKHLQGHSHQGHQW DXGLWRUV
352),/(2)*29(510(17
7KH&LW\RI9DOOHMRLVDPXQLFLSDOFRUSRUDWLRQLQFRUSRUDWHGLQ0DUFKXQGHUWKHODZVRIWKH6WDWHRI&DOLIRUQLD$ &KDUWHU&LW\ORFDWHGZLWKLQ6RODQR&RXQW\LQ1RUWKHUQ&DOLIRUQL DWKH&LW\RSHUDWHVXQGHUD&LW\&KDUWHULQLWLDOO\ DGRSWHGLQ
DQGODVWDPHQGHGLQ1RYHPEHU7KH&KDUWHU SURYLGHVIRUD&RXQFLO0DQDJHUIRUPRI JRYHUQPHQWLQZKLFKWKH&LW\0DQDJHUUHFRPPHQGVSROLF\SURJUDPDQGEXGJHWSULRULWLHVWRWKH&LW\&RXQFLOZKRLQ WXUQGHYHORSVOHJLVODWLRQDQGSROLFLHVWRGLUHFWWKH&LW\
7KHFLWL]HQVHOHFWWKH&LW\RI9DOOHMR
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
i
7KH6DFUDPHQWR1DSDDQG6DQ-RDTXLQ5LYHUVDOOIORZLQWRWKH6DQ)UDQFLVFR%D\DW9DOOHMR5ROOLQJKLOOVVXUURXQG WKH&LW\SURWHFWLQJLWIURPIRJDQGZLQGW\SLFDORIPDQ\FRDVWDOWRZQV9DOOHMRHQMR\VDPLOG0HGLWHUUDQHDQFOLPDWH,W LVFRQQHFWHGWRWKH*UHDWHU%D\$UHDWKH3DFLILF5LPDQGWKHUHVWRIWKHZRUOGE\VKLSUDLODXWRPRELOHDQGDLU
9DOOHMRLVORFDWHGLQ1RUWKHUQ&DOLIRUQLDPLOHVQRUWKHDVWRI6DQ)UDQFLVFR $SSUR[LPDWHO\PLOHVVRXWKZHVWRI6DFUDPHQWRPLOHVQRUWKRI6LOLFRQ9DOOH\DQGPLOHVQRUWKRI/RV$QJHOHV
0DS6RXUFH
*RRJOH0DSV
7KH&LW\SURYLGHVDZLGHUDQJHRIPXQLFLSDOVHUYLFHVLQFOXGLQJSXEOLFVDIHW\ SROLFHDQGILUHSURWHFWLRQ
DPXQLFLSDO
ZDWHUV\VWHPVWUHHWPDLQWHQDQFHDQGRWKHUSXEOLFZRUNVLQIUDVWUXFWXUHIXQFWLRQVKRXVLQJDVVLVWDQFHJROIFRXUVHV SODQQLQJEXLOGLQJLQVSHFWLRQSXEOLFPDULQDDQGJHQHUDODGPLQLVWUDWLRQ7KHVHSDUDWH*UHDWHU9DOOHMR5HFUHDWLRQ 'LVWULFW
*95'
SURYLGHVIRU3DUNVDQG5HFUHDWLRQSURJUDPVDQG VHUYLFHV:DWHU(PHUJHQF\7UDQVSRUW$JHQF\
:(7$
SURYLGHVIRUIHUU\VHUYLFHVDQG6RODQR&RXQW\7UDQVLW 6RO7UDQV
SURYLGHVEXVVHUYLFHV
7KLVUHSRUWLQFOXGHVDOORUJDQL]DWLRQVDQGDFWLYLWLHVIRUZKLFKHOHFWHG&LW\RIILFLDOVH[HUFLVHILQDQFLDODFFRXQWDELOLW\ 7KHQRWHVWRWKHILQDQFLDOVWDWHPHQWVIXUWKHUGLVFXVVWKH&LW\DVDILQDQFLDOUHSRUWLQJHQWLW\
$FFRUGLQJO\WKHIROORZLQJHQWLWLHVDOWKRXJKOHJDOO\VHSDUDWH DUHFRPSRQHQWXQLWVDQGDUHLQFRUSRUDWHGLQWKH DFFRPSDQ\LQJILQDQFLDOVWDWHPHQWV
x +RXVLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 0DULQH:RUOG-RLQW3RZHUV$XWKRULW\
%OHQGHG&RPSRQHQW8QLW
x 3DUNLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 3XEOLF)LQDQFLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 9DOOHMR+RPHOHVV1DYLJDWLRQ&HQWHU-3$
%OHQGHG&RPSRQHQW8QLW
x 9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW
'LVFUHWH&RPSRQHQW8QLW
x 9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW)LQDQFLQJ&RUSRUDWLRQ 'LVFUHWH&RPSRQHQW8QLW
(&2120,&&21',7,21$1'287/22.
7KHHFRQRPLFLPSDFWRIWKHSDQGHPLFVXGGHQVKLIWVLQWKHODERUIRUFHDQGKRXVLQJPDUNHWVDVZHOODVWKHJOREDO LPSDFWVRIWKHFXUUHQWFRQIOLFWVLQHDVWHUQ(XURSHDQGWKHPLGGOH(DVWKDYHEHHQIHOWWKURXJKRXWWKH6WDWHDQG&LW\ 7KLV HFRQRPLF GLVUXSWLRQ KDV DIIHFWHG PDQ\ EXVLQHVVHV DQG LQGLYLGXDOV YHU\ VHULRXVO\ 6RODQR &RXQW\¶V XQHPSOR\PHQWUDWHZDVLQ6HSWHPEHUGRZQIURP IRU6RODQR&RXQW\KDVH[SHULHQFHGMRE
UHFRYHU\EXWKDYHIHZHUDYDLODEOHZRUNHUVIURPFLW\UHVLGHQWV7KHUHDUHHQFRXUDJLQJVLJQVIRUHFRQRPLFVWDELOLW\ LQWKHFRPLQJ\HDUZLWKWKH)HGHUDO5HVHUYHWDPSHULQJLQWHUHVW UDWHV$VPDQ\ORRNWRWKHUHLVKRSHWKDW VRPHQRUPDOL]DWLRQWRRXUFLWL]HQV
OLYHVZLOORFFXU
ii
'XULQJWKHSDQGHPLFDQGFXUUHQWHFRQRPLFUHERXQGWKH&LW\KDVVHHQQHJDWLYHLPSDFWVRQUHYHQXHVRXUFHV(YHQ ZLWKVRPHSRVLWLYHVLJQVRIGHYHORSPHQWRSSRUWXQLWLHVVRPHRI WKHORRPLQJILVFDOFKDOOHQJHVLQFOXGHWKHULVLQJ FRVWVRIHPSOR\HHVDODULHVDQGEHQHILWVWKDWWKUHDWHQQHDUO\DOOEXVLQHVVHVDQG&DOLIRUQLDPXQLFLSDOLWLHV,QDGGLWLRQ FULWLFDOSLHFHVRI&LW\LQIUDVWUXFWXUHDUHVKRZLQJWKHLUDJHDQGZLOOUHTXLUHVLJQLILFDQWFDSLWDOH[SHQGLWXUHVWRUHPHG\ ,QWKHQH[W\HDUWKH&LW\ZLOOIRFXVRQSODQQLQJIRUIXWXUHLQ IUDVWUXFWXUHDQGXSGDWLQJWKH&LW\ V(FRQRPLF
'HYHORSPHQWVWUDWHJLFSODQ
6WDWH%XGJHW$PLGXQSUHFHGHQWHGUHYHQXHJURZWK&DOLIRUQLDIDFHGDFKDOOHQJLQJGRZQWXUQLQGULYHQE\D GHFOLQLQJVWRFNPDUNHWDQGSHUVLVWHQWLQIODWLRQ'HVSLWHD ELOOLRQVKRUWIDOO&DOLIRUQLD VILVFDOUHVLOLHQFHDQG
SUXGHQWSODQQLQJSDYHGWKHZD\IRUDVWUDWHJLFVWDWHEX GJHW7KLVEXGJHWDWHVWDPHQWWR&DOLIRUQLD V
UHVLOLHQFHHPSOR\HGDEDODQFHGDSSURDFKWKDWLQFOXGHGIXQGVKL IWVVSHQGLQJUHGXFWLRQVGHOD\HGVSHQGLQJDQG LQWHUQDOERUURZLQJZKLOHPDLQWDLQLQJILVFDOGLVFLSOLQHZLWKDUHFRUGELOOLRQLQWRWDOEXGJHWDU\UHVHUYHV
7KHVWDWHEXGJHWSULRULWL]HGNH\DUHDVFUXFLDOWR&DOLI RUQLDQVVXFKDV.HGXFDWLRQZLWKVXEVWDQWLDO DOORFDWLRQVDQGDGGLWLRQDOUHVRXUFHVIRUWKH/RFDO&RQWURO)XQGLQJ)RUPXOD+LJKHUHGXFDWLRQDQGKHDOWKFDUHDOVR UHFHLYHGGXHDWWHQWLRQZLWKFRPPLWPHQWVWRH[SDQGLQJKHDOWKFDUHDFFHVV$GGLWLRQDOO\IXQGVDLPHGWRIRUWLI\WKH QHZO\LPSOHPHQWHGEHKDYLRUDOKHDOWKV\VWHPGHPRQVWUDWHVDFRPPLWPHQWWRWKHZHOOEHLQJRIWKHFRPPXQLW\
,QDGGUHVVLQJVRFLHWDOFKDOOHQJHVWKHEXGJHWVKRZHGDFRPPLWPH QWWRFRPEDWKRPHOHVVQHVVSDLULQJD ELOOLRQLQYHVWPHQWZLWKDFFRXQWDELOLW\PHDVXUHV7UDQVSRUWDWLRQDQGFOLPDWHLQLWLDWLYHVZHUHQRWOHIWEHKLQGDVWKH VWUHDPOLQHGDSSURYDORILQIUDVWUXFWXUHSURMHFWVSDYHGWKHZD\IRUDSRWHQWLDOELOOLRQLQYHVWPHQWRYHUWKHQH[W GHFDGH
3XEOLFVDIHW\UHPDLQHGDWRSSULRULW\ZLWKFRPPLWPHQWVH[FHHGL QJPLOOLRQIRUYDULRXVSURJUDPVLQFOXGLQJ HIIRUWVDJDLQVWWKHVSUHDGRIIHQWDQ\ODQGUHWDLOWKHIW7KHDS SURYDORIVWUHDPOLQHGSURMHFWVUHLQIRUFHG&DOLIRUQLD V
DELOLW\WRVHFXUHIHGHUDOIXQGVIDFLOLWDWLQJWKHDFFHOHUDWLRQRIFULWLFDOLQIUDVWUXFWXUHGHYHORSPHQWV
5HYHQXHVDQG/RFDO6DOHV7D[,QFUHDVH,Q1RYHPEHUWKH9DOOHMRYRWHUVDSSURYHGDVDOHVWD[PHDVXUH NQRZQDV0HDVXUH9WKDWSHUPDQHQWO\H[WHQGHGWKH&LW\ V0HDVXUH%RQHFHQWSHUGROODUWUDQVDFWLRQDQG
XVHWD[7KLVWD[FRQWLQXHVWRSURYLGHDURXQGPLOOLRQDQQ XDOUHYHQXHWRWKH&LW\7KHVHUHYHQXHVDUH VWUDWHJLFDOO\DOORFDWHGWRZDUGVVSHFLILFSURMHFWVWDUJHWHGVWDIILQJDQGWKHUHEXLOGLQJRIUHVHUYHVXQGHUWKHGLUHFWLRQ RIWKH&LW\&RXQFLO,QDGGLWLRQRQ1RYHPEHUWKH9DOOHMRYRWHUVDSSURYHG³0HDVXUH3´DGGLQJDQDGGLWLRQDO WUDQVDFWLRQWD[WRWKHFXUUHQWWD[UDWHRIZKLFKUHVXOWHGLQ&LW\RI9DOOHMRVDOHVWD[RI HIIHFWLYH
$SULO7KLVWD[SURYLGHGDURXQGPLOOLRQLQDQGLVH[SHFWHGWRUHFHLYHPLOOLRQLQ7KHVH IXQGVZLOOKHOSLQVDIHVWUHHWVDQGHVVHQWLDOVHUYLFHVVXFKDVSXEOLFVSDFHVPDLQWDLQLQJILUHSURWHFWLRQHPHUJHQF\ PHGLFDOUHVSRQVHFULPHSUHYHQWLRQKRPHOHVVQHVVDQGJHQHUDOJR YHUQPHQWXVH7KHIROORZLQJFKDUWWUDFNVWKH LPSURYHPHQWLQWKHWRWDO*HQHUDO)XQGUHYHQXHVDQGH[SHQGLWXUHVRYHUWKHODVWWHQ\HDUV
iii
&855(17),1$1&,$/&21',7,216
&XUUHQW)LQDQFLDO&RQGLWLRQV7KHJUDSKEHORZLOOXVWUDWHVWKH&LW\ VFXUUHQWILQDQFLDOFRQGLWLRQDQGLWVLPSURYHG
ILVFDOVWDELOLW\VLQFHWKHSDVVDJHRIWKH0HDVXUH%9WD[DQGRQWKHSDVVLQJRI0HDVXUH3WD[,WSUHVHQWV WKHFKDQJHVLQIXQGEDODQFHIRUWKH*HQHUDO)XQGIRUWKHILVFDO \HDUHQGHG-XQHDVFRPSDUHGZLWKWKH QLQHSULRU\HDUV
,QILVFDO\HDUWKHFLW\¶V*HQHUDO)XQGUHYHQXHVLQFUHDVHGIURPODVW\HDUGXHWRWKHSDVVLQJRI0HDVXUH3 DQG YDULRXV JUDQWV $V D UHVXOW WKH &LW\ ZDV DEOH WR PDLQWDLQ*HQHUDO )XQG XQDVVLJQHG IXQG EDODQFH
EXGJHWUHVHUYHV
RYHUWKH&LW\&RXQFLO
VHVWDEOLVKHGOHYHORI RIH[SHQGLWXUHV7KH&LW\LVFRPPLWWHGWR PDLQWDLQLQJDQGJURZLQJWKHVHIXQGEDODQFHUHVHUYHVWRSURYLGHDGGLWLRQDOVWUHQJWKDQGDVVXUDQFHIRURQJRLQJ&LW\ RSHUDWLRQVDQGIXWXUHREOLJDWLRQV
3HQVLRQDQG2WKHU3RVW(PSOR\PHQW%HQHILW
23(%
2EOLJDWLRQV ±$FRQWLQXHGFRQFHUQIRU&DOLIRUQLDFLWLHV DUHQRWDEOHREOLJDWLRQVIRUSHQVLRQVDQG23(%IRUUHWLUHHKHDOWKFDUH7KH&DOLIRUQLD3XEOLF(PSOR\HHV 5HWLUHPHQW
6\VWHP
&DO3(56
FRQWLQXHV WR DGGUHVV SHQVLRQ SODQ ULVN DQG IXQGLQJ OHYHOV E\ XSGDWLQJ LWV DFWXDULDO GHPRJUDSKLFVDVVXPSWLRQVDQGSKDVLQJLQFRQWULEXWLRQLQFUHDVHV WRDGGUHVVVLJQLILFDQWLQYHVWPHQWORVVHVGDWLQJ EDFNWR
$VDUHVXOWHPSOR\HUFRQWULEXWLRQUDWHVDUHSURMHFWHGWRFRQWLQXHWRULVHLQIXWXUH\HDUV
'XULQJILVFDO\HDUWKH&LW\FRQWULEXWHGDQGRIHPSOR\HHVDODU\WRZDUGVWKHVWDQGDUGFRVW IRULWV6DIHW\DQG0LVFHOODQHRXVSHQVLRQSODQVUHVSHFWLYHO\,QDGGLWLRQLQ-XO\WKH&LW\PDGHLWVPLOOLRQ UHTXLUHGDQQXDOSD\PHQWRQWKH8QIXQGHG$FFUXHG/LDELOLWLHV 8$/
3URMHFWLRQVXWLOL]LQJ-XO\&DO3(56GDWD
VKRZWKH&LW\
V)<
VWDQGDUGUDWHVIRULWV6DIHW\DQG0LVFHOODQHRXVSODQVGHFUHDVLQJWR DQG
UHVSHFWLYHO\DQGLWVWRWDOUHTXLUHGDQQXDOSD\PHQWRQWKH8$/UHPDLQHGDWPLOOLRQ
7KH&LW\KDVSUHYLRXVO\WDNHQVWHSVWRPLWLJDWHERWKWKLV&DO3( 56UDWHLQFUHDVHDQGLWV23(%UHWLUHHKHDOWK REOLJDWLRQV,QWKH&LW\SURDFWLYHO\PDGHDVXSSOHPHQWDOFRQWULEXWLRQRIPLOOLRQWR&DO3(56WREHJLQSODQ VWDELOL]DWLRQ,Q$XJXVWWKH&LW\HVWDEOLVKHGDQ,QWHUQDO 5HYHQXH&RGH ,5&
6HFWLRQ7UXVWZLWKWKH
3XEOLF $JHQF\ 5HWLUHPHQW 6HUYLFHV
3$56
RUJDQL]DWLRQ WR IXUWKHU PLWLJDWH IXWXUH &DO3(56 LQFUHDVHV 2Q-XQHWKH*HQHUDO)XQGUHSRUWHGPLOOLRQLQWRWDOFRQWULEXWLRQVWRWKH3$563HQVLRQ7UXVW)XQG LQFOXGLQJLQYHVWPHQWHDUQLQJV
'XULQJWKH&LW\PDGHDQLQLWLDOPLOOLRQFRQWULEXWL RQWRDGHGLFDWHGDQGLUUHYRFDEOHUHWLUHHKHDOWK EHQHILWVWUXVWIXQGWREHJLQWRSURYLGHWKHUHVRXUFHVQHFHVVDU\WRHQVXUHORQJWHUPIXQGLQJIRULWV23(%REOLJDWLRQ 2Q-XQHWKH&LW\
VWRWDOFRQWULEXWLRQVWRWKH&DOLIRU QLD(PSOR\HU
5HWLUHH%HQHILW7UXVW
&(5%7
ZHUH
PLOOLRQLQFOXGLQJLQYHVWPHQWHDUQLQJVIXQGLQJRIWKH&LW\ VWRWDO23(%OLDELOLWLHVRIPLOOLRQDVRIWKH
-XQHPHDVXUHPHQWGDWH
iv
/21*5$1*(),1$1&,$/)25(&$67,1*
*HQHUDO)XQG/RQJ7HUP)LQDQFLDO)RUHFDVW±7KH&LW\UHJXODUO\XWLOL]HVWKH*HQHUDO)XQGORQJWHUPILQDQFLD O IRUHFDVWWRKHOSWKH&LW\SODQIRUWKHIXWXUHE\SURYLGLQJDQX QGHUVWDQGLQJRIDYDLODEOHIXQGLQJZKLOHHYDOXDWLQJ ILQDQFLDOULVNVDQGLGHQWLI\LQJIXWXUHFRPPLWPHQWVDQGUHVRXUFH GHPDQGV7KHWDEOHEHORZSURYLGHVWKHFXUUHQW ILYH\HDUYLHZRIWKH&LW\
VILVFDOFRQGLWLRQDQGLQFRUSRUDWHVERWKRSHUDWLQJDQGFDSLWDOQHHGVLQWKHFRPPXQLW\
7KH&LW\RSHUDWHVZLWKDEDODQFHGEXGJHWLQILVFDO\HDU ZKHUHUHFXUULQJUHYHQXHVDUHHTXDOWRUHFXUULQJ H[SHQGLWXUHV7KHILYH\HDUV¶SURMHFWLRQDQWLFLSDWHVDQ\SRWHQWLDOFKDOOHQJHVWKDWPLJKWDULVHDQGWDNHVFRUUHFWLYH DFWLRQWKURXJKEXGJHWRURSHUDWLRQDODGMXVWPHQWV
&DSLWDO ,PSURYHPHQW 3URMHFW 3ODQQLQJ ± 7KH &LW\
V &DSLWDO ,PSURYHPHQW 3URJUDP
&,3
LV SODQQHG IRU
ILYH\HDUVDQGDQDO\]HGXVLQJ&LW\VSHFLILFSULRULWL]DWLRQFULWHULD7KLVLVXSGDWHGUHJXODUO\WRUHIOHFWFKDQJLQJQHHGV IXQGLQJDYDLODELOLW\DQGUHPRYDORISURMHFWVZKLFKKDYHEHHQFRPSOHWHG7KH&,3EXGJHWIRULVPLOOLRQ )XQGLQJFRPHVIURPPXOWLSOHVRXUFHVLQFOXGLQJ*HQHUDOIXQGWUDQVIHUVIHHVJUDQWVDQGERQGSURFHHGV
0$-25,1,7,$7,9(6
(DFK\HDUWKH&LW\LVSURYLGHGZLWKDQHZRSSRUWXQLW\WRLGHQWLI\DGGUHVVDQGUHVROYHLVVXHVIDFLQJWKHFRPPXQLW\ DQGLWVUHVLGHQWV
6PDOO%XVLQHVV*UDQW3URJUDP
7KH&LW\LVLPSOHPHQWLQJDIROORZXSWRWKHVXFFHVVIXO6PDOO%X VLQHVV*UDQWSURJUDPIRUSDQGHPLFUHOLHIWKDW VXSSRUWHGRYHU9DOOHMREXVLQHVVHV7KH&LW\&RXQFLODSSURYHGWKHXVHRI$PHUL FDQ5HVFXH3ODQ$FW $53$
IXQGVWRSURYLGHDVHFRQGURXQGRIJUDQWIXQGVWRIXQFWLRQDVG LUHFWVXSSRUWWRVPDOOEXVLQHVVHVLQ9DOOHMR&LW\ VWDIILVFXUUHQWO\SURJUDPPLQJDVHFRQGURXQGRIJUDQWSURJUDPVIRUVPDOOEXVLQHVVHVDQGHQKDQFLQJWKHSURJUDP ZLWKUHFRYHU\VXSSRUWVLPLODUWRRWKHUSURJUDPVLQ6RODQR&RXQW\DQGWKURXJKRXWWKHVWDWH
(FRQRPLF'HYHORSPHQW6WUDWHJLF3ODQ,QLWLDWLYHV±7KH&LW\FRQWLQXHVWRIRFXVRQHFRQRPLFGHYHORSPHQWZLWK DFRPPLWPHQWWRDGYDQFHMREJURZWKFUHDWHVXVWDLQDEOHUHYHQXHDQGWRPDLQWDLQDQH[FHOOHQWTXDOLW\RIOLIHIRUDOO UHVLGHQWV7KH(FRQRPLF'HYHORSPHQW6WUDWHJLF3ODQKDVNLFNHGR IIODVW\HDUDQGLVQHDULQJFRPSOHWLRQ7KLV GRFXPHQWZLOOSURYLGHVWUDWHJLHVDQGDURDGPDSWRLPSOHPHQWWK HPWRHQVXUHHFRQRPLFGHYHORSPHQWJURZWKLQ WKHIXWXUH
6HYHUDOH[FLWLQJ(FRQRPLFDQG&RPPXQLW\,PSURYHPHQW3URMHFWVRQNH\SLHFHVRISURSHUW\DUHVHHLQJPRYHPHQW RYHUWKHSDVW\HDUZLWKDOLVWRIRSSRUWXQLWLHVLQWKHFRPLQJ\ HDU7KH&LW\FRQWLQXHVWRVHHPDQ\EXVLQHVVDQG GHYHORSPHQWLQTXLUHVDQGVWDIIDUHZRUNLQJGLOLJHQWO\WRH[SHGLWHWKHVHSURMHFWVZLWKWKHYLVLRQWKDWWKHLUVXFFHVV ZLOOULSSOHWKURXJKWKHFRPPXQLW\DQGKHOSEROVWHUIXWXUHGHYHORSPHQWRSSRUWXQLWLHV6RPHRIWKHVHSURMHFWVLQFOXGH
0DUH,VODQG±3URSRVHG0L[HG8VH'HYHORSPHQW
7KH 1LPLW]JURXS WRRN RZQHUVKLS RIWKH PDMRULW\RI 0DUH ,VODQGDQGFRQWUDFWHGZLWK GHYHORSPHQW SDUWQHU 6RXWKHUQ/DQG&RPSDQ\DW WKHHQGRI
7KH1LPLW]*URXSDQG6RXWKHUQ/DQG&RPSDQ\HP EDUNHGRQD SURJUDPRIKLULQJDGHYHORSPHQWWHDPIDFLOLWDWLQJEXVLQHVVLQ WKHLUFRUHFRPPHUFLDODUHDDVVHVVLQJFXUUHQW EXLOGLQJVIRUXSJUDGHVSURYLGLQJVHFXULW\DQGLPSURYHPHQWVDQDO\]LQJWKHLQIUDVWUXFWXUHFRVWVRQWKHLVODQGDQG WKHFRVWVIRU1RUWK0DUH,VODQG7KH\DOVRKDYHDGGHGWRWKHLUGHVLJQDQGSODQQLQJWHDPWRGHYHORSDQLVODQGZLGH PDVWHUSODQWRVHWXS0DUH,VODQGDVDFRPPXQLW\RIPDQXIDFWXUL QJEXVLQHVVHPSOR\PHQWKRXVLQJDQG ) < ) < ) < ) < ) <
$GRSWHG 3URMHFWHG 3URMHFWHG 3URMHFWHG 3URMHFWHG
5HYHQXHV7UDQVIHUV,Q ([SHQVHV7UDQVIHUV2XW
'HILFLW
6XUSOXVIRU<HDU (QGLQJ$YDLODEOH%DODQFH *HQHUDO)XQG/RQJ7HUP)RUHFDVW
WKURXJK) LVFDO< HDU
,QPLOOLRQV
v
UHFUHDWLRQ2YHUWKHSDVW\HDUWKH\KDYHKHOGPRQWKO\FRPPXQLW\ PHHWLQJVWRNHHSDOOLQIRUPHGRISODQVDQG SURJUHVVDVZHOODVPHHWLQJUHJXODUO\ZLWKWKH&LW\VWDIIWRLP SOHPHQWWKH1RUWK0DUH,VODQGH[FOXVLYHQHJRWLDWLQJ DJUHHPHQWLQWRDIXOO'HYHORSPHQW$JUHHPHQW
'$
7KH'$ZDVDSSURYHGLQWKHILUVWTXDUWHURIDQGZLOOJXLGH GHYHORSPHQW RI WKH LVODQG RYHU WKH QH[W VHYHUDO \HDUV DQG LQFOXGHV D UHTXLUHPHQW IRU D QHZ LVODQGZLGH 6SHFLILF3ODQWRJXLGHIXWXUHGHYHORSPHQW7KHLQLWLDOWUDQVIHURIWKH&LW\¶VDFUHVFORVHG2FWREHUDQG WKHUHPDLQLQJDFUHVZLOOEHFRQYH\HGWR1LPLW]DIWHUWKH1DY\FRPSOHWHVWKHHQYLURQPHQWDOFOHDQXSDQGWUDQVIHUV WKHSDUFHOVWRWKH&LW\3KDVHRIWKH'$LPSOHPHQWDWLRQLQFO XGHVWKH&RQQHOO\&RUULGRUGHYHORSPHQWWREH FRQVWUXFWHG ZLWKLQ PRQWKV RI FORVLQJ 7KLV SURSRVDO LQFOXGHV DSSUR[LPDWHO\ VT IW RI RIILFH
PXOWLIDPLO\XQLWVDURRPKRWHOVTIWRIDQFLOODU\XVHVDQG VTIWRSHQVSDFH
&RRNH3URSHUW\±1HZ&RVWFRDQG+RXVLQJ'HYHORSPHQWLQ3URFHVV 9DOOHMR)DLUYLHZ'HYHORSHUV/HZLV*URXSUHFHLYHGHQWLWOHPHQWDS SURYDOIRUD0DVWHU3ODQWRFRQVWUXFWDQHZ H[SDQGHG&RVWFRDGGLWLRQDOUHWDLODQGQHZVLQJOHIDPLO\KRPHVRQWKHDFUHSDUFHOIRUPHUO\NQRZQDVWKH &RRNH3URSHUW\RQ$GPLUDO&DOODKDQ/DQHDGMDFHQWWR,LQ7KHORQJYDFDQWVLWH VVL]HDQGYLVLELOLW\PDNH
LWDQLGHDOUHORFDWLRQVLWHIRU&RVWFRDQGLWDOORZVWKH&LW\WRUHWDLQWKLVPDMRUHPSOR\HUDQGVDOHVWD[FROOHFWRUDV ZHOODVSURYLGHVPXFKQHHGHGKRXVLQJWRWKHFRPPXQLW\KRXVLQJVWRFN$IWHUOHQJWK\OLWLJDWLRQWKHDJUHHPHQWVWR LPSOHPHQWWKLVSURMHFWDUHFRPSOHWHDQGWKHODQGLVSXUFKDVHGZLWKWKHGHYHORSHUSUHSDULQJWRPRYHIRUZDUGZLWK FRQVWUXFWLRQLQWKHFRPLQJPRQWKV
%OXH5RFN6SULQJV±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
6HND+LOOV
7KH&LW\KDVQHJRWLDWHGDOHDVHRIDSSUR[LPDWHO\DFUHRIZD WHUIURQWSURSHUW\WREHGHYHORSHGE\WKH<RFKD 'HKH7ULEH7KHSURSRVHGGHYHORSPHQWLQFOXGHVDFXOWXUDOFHQWH UDUHVWDXUDQWRXWGRRUJDWKHULQJDUHDDQG GHYHORSPHQWRIWKHDFUH:DWHUIURQW+LVWRU\3DUN7KHOHDVHKDVEHHQDSSURYHGLQZLWKWKHWULEHFXUUHQWO\ FRPSOHWLQJGXHGLOLJHQFH
6RODQR±6RODQR)DLUJURXQGV
7KHRYHUDOOVLWHFRQVLVWVRI
DFUHVLQWKH9DOOHMR&LW\OL PLWV7KH&LW\DQGWKH&RXQW\ZRUNHGWRJHWKHURQD 5HTXHVW IRU 4XDOLILFDWLRQV
5)4
SURFHVV WKDW VHOHFWHG WZR SULPDU\ GHYHORSPHQW JURXSV WR SURSRVH RQ D 5HTXHVWIRU3URSRVDOV
5)3
WRDPHQGWKH
6SHFLILF3ODQ7KH&LW\DQG&RXQW\VHOHFWHGRQHPDVWHUGHYHORSHU EDVHGRQWKHLUSURSRVDOLQ2FWREHU7KH&RXQW\KDVVLJQHG DQDJUHHPHQWZLWKWKHSUHIHUUHGGHYHORSHUWR IDFLOLWDWHWKHLUYLVLRQIRUWKHGHYHORSPHQWRIWKHDUHDDVDQL FRQLFUHJLRQVHUYLQJSXEOLFHQWHUWDLQPHQWGHVWLQDWLRQ DQGSULYDWHPL[HGXVHGHYHORSPHQWDQGDQLQWHJUDWHG)DLURIWKH)XWXUH$SURSRVHG6SHFLILF3ODQ$PHQGPHQW HQYLVLRQVWKDWWKHVLWHZRXOGGHYHORSZLWKDPL[RIUHJLRQVHUY LQJHQWHUWDLQPHQWXVHVDORQJZLWKUHVWDXUDQWUHWDLO DQGKRVSLWDOLW\XVHVWKDWFRPSOHPHQWWKHH[LVWLQJ6RODQR&RXQW\)DLUJURXQGVDQGWKHDGMDFHQW6L[)ODJV'LVFRYHU\ .LQJGRPIDFLOLW\'HYHORSPHQWNLFNRIIPHHWLQJVEHJDQLQDQGWKH&RXQW\DQGGHYHORSHUDUHSUHSDULQJGHWDLOHG SODQVWREHVXEPLWWHGWRWKH&LW\LQSUHSDUDWLRQRIPRYLQJWKLVSURMHFWIRUZDUGLQWKHFRPLQJ\HDU
3DUWLFLSDWRU\%XGJHWLQJ
±,QWKH9DOOHMR&LW\&RXQFLOHVWDEOLVKHGWKHILUVWFLW\ZLGH3DUWLFLSDWRU\%XGJHWLQJ
3%
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
LQ)<7KHVHIXQGVZLOOJRWRZDUGVQHZSURMHFW VLQWKHXSFRPLQJ)LVFDO<HDU)<ZLOO KDYHDDOORFDWLRQWRZDUGV&\FOH
SURMHFWIXQGLQJ
vi
(GHQ6XSSRUWLYH+RXVLQJ3URMHFW±%OXH2DN/DQGLQJ
7KH&LW\ZRUNHGFROODERUDWLYHO\ZLWK(GHQ+RXVLQJWRFUHDWHXQLWVRISHUPDQHQWO\DIIRUGDEOHKRXVLQJXQLWVLQD WUDQVLWLRQDOVXSSRUWLYHKRXVLQJSURMHFWRQ6DFUDPHQWR6WUHHWFD OOHG%OXH2DN/DQGLQJ7KLVSURMHFWUHTXLUHGWKH HIIRUWVRIPXOWLSOH'HSDUWPHQWVDQGOHYHUDJLQJ+8'IXQGVWRPDNHLWDUHDOLW\7KHSURMHFWFRQVWUXFWLRQEURNHJURXQG LQ1RYHPEHURIDQGUHVLGHQWVEHJDQPRYLQJLQWRWKHLUXQLWV LQ0D\%OXH2DN/DQGLQJFHOHEUDWHGLWV JUDQGRSHQLQJRQ6HSWHPEHU
)LUP)RXQGDWLRQ+RXVLQJ3URMHFW±%URDGZD\3URMHFW
7KH&LW\DORQJZLWKQRQSURILWGHYHORSHU)LUP)RXQGDWLRQUHFHLYHGD0LOOLRQJUDQWIURPWKH6WDWH+RXVLQJDQG &RPPXQLW\'HYHORSPHQW&RPPLVVLRQ
+&'
IRUWKH+RPHNH\JUDQWWREXLOGXQLWVRQ%URDGZD\6WUHHWWRVHUYH DVSHUPDQHQWVXSSRUWLYHKRXVLQJIRUFKURQLFDOO\KRPHOHVVLQGLYL GXDOVLQWKHFRPPXQLW\7KH&LW\DQG)LUP )RXQGDWLRQSDUWQHUHGZLWK)DFWRU\26WRSURYLGHWKHXQLWVDQGJ URXQGEURNHLQWKHIDOORI7KHSURMHFWLV H[SHFWHGWREHUHDG\IRUWHQDQWVWRPRYHLQHDUO\
,PSURYLQJ7HFKQRORJ\ʹ,QIRUPDWLRQ7HFKQRORJ\FRQWLQXHVWRPDNHVWULGHVLQVHYHUDODUHDVRIWKHFLW\WRLPSURYH WHFKQRORJ\DQGHQKDQFHFRPPXQLFDWLRQ7KHIROORZLQJDUHSURMHFWVWKDWJUHDWO\HQKDQFHWKH&LW\ VRSHUDWLRQDQG
UHSUHVHQWDFRQVLGHUDEOHEHQHILWIRURXUFLWL]HQV
x ,QIRUPDWLRQ7HFKQRORJ\LQFORVHSDUWQHUVKLSZLWKWKH)LQDQFHD QG+XPDQ5HVRXUFH'HSDUWPHQWVKDYH HPEDUNHGRQXSJUDGLQJRXUDQWLTXDWHGHQWHUSULVHUHVRXUFHSODQQLQJILQDQFLDO (53
V\VWHP7KHV\VWHPLQXVH
WRGD\WRPDQDJH&LW\
VILQDQFLDOVXWLOLW\ELOOLQJSD\UROODQ GZDUHKRXVHLQYHQWRU\ZDVLQVWDOOHGLQ
7KLV
XSJUDGHZLOOWDNHSODFHLQDQGLVH[SHFWHGWREHFRPSOHWHGE\WKHHQGRIWKHILUVWTXDUWHULQ
x $PDMRUIRFXVRI,QIRUPDWLRQ7HFKQRORJ\LQWKHXSFRPLQJ\HDUV LVWRFUHDWHDUREXVWF\EHUVHFXULW\SURJUDPLQ WKHFLW\&\EHUVHFXULW\SRVHVDPDMRUSUREOHPIRUPDQ\JRYHUQP HQWVDFURVVWKHFRXQWU\,QUHFHQWPRQWKV VHYHUDOSURPLQHQW%D\$UHDFLWLHVH[SHULHQFHGF\EHUDWWDFNVDQG ZHUHFULSSOHGDQGXQDEOHWRSURYLGHEDVLF VHUYLFHVWRWKHLUFLWL]HQV7KHJRDORILQIRUPDWLRQWHFKQRORJ\LVWRVWD\DKHDGRIWKHFXUYHLQFUHDWLQJDUREXVW F\EHUVHFXULW\SURJUDP7KHGHSDUWPHQWVHHNVWRFUHDWHWKHIROORZLQJSURJUDPV
&UHDWHDF\EHUVHFXULW\LQFLGHQWUHVSRQVHSODQ
6HFXUH SURSHU UHVRXUFHV OLNH F\EHU VHFXULW\ SURIHVVLRQDOV ZKRFDQ UHVSRQG TXLFNO\ LQ FDVH RI D F\EHUDWWDFN&LW\KDVVHFXUHG8QLWDVHUYLFHIURP3DOR$OWR1HWZRUNV &RQWLQXHWRUHFRJQL]H2FWREHUDVF\EHUVHFXULW\DZDUHQHVVPRQW KWRNHHSF\EHUVHFXULW\RQWKHIURQW EXUQHUDQGRXUWRSPRVWSULRULW\
+LUHD&,6$
&\EHU6HFXULW\,QIRUPDWLRQ6\VWHP$GPLQLVWUDWRU
WRHQVXUHFULWLFDO9DOOHMRLQIUDVWUXFWXUH
UHPDLQVVHFXUH
x ,QIRUPDWLRQ7HFKQRORJ\¶VIRFXVIRUWKHQH[WVHYHUDO\HDUVLV% URDGEDQGDQG'LJLWDO(TXLW\,Q3UHVLGHQW %LGHQDQQRXQFHGWKDWEURDGEDQGLVWREHPDGHDYDLODEOHWRDOO ,QKLV,QIUDVWUXFWXUHDQG,QYHVWPHQW-RE$FW
,,-$
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
6HOHFWHG D QHZ 3
SULYDWHSXEOLFSDUWQHUVKLS
,63
6PDUW )LEHU 1HWZRUNV
WR PDQDJH FLW\
V ILEHU
LQIUDVWUXFWXUHDQGVHUYHWKHUHWDLODQGUHVLGHQWLDOLQWHUQHWFXVWRPHUV 3XEOLF:L)LLQVWDOODWLRQVLQ9DOOHMR'RZQWRZQZDWHUIURQW%OXH5RFN6SULQJV3DUNDQG'DQ)ROH\FXOWXUDO FHQWHUDUHH[SHFWHGWREHFRPSOHWHGLQWKHILUVWTXDUWHU &LW\FRXQFLODSSURYHGWKHGHVLJQEXLOG FRQWUDFWLQ6HSWHPEHU
&RQQHFWLQJVHYHUDOPXQLFLSDOEXLOGLQJVWRWKHFLW\ILEHU'HVL JQEXLOGFRQWUDFWVWRJREHIRUHWKHFRXQFLO VHFRQGTXDUWHU
%XLOGLQJDUHVLOLHQWUHGXQGDQWILEHUORRS
([SORULQJRSWLRQVIRUILEHUWRSUHPLVH
)773
LQQHLJKERUKRRGV WREHVSHFLILHG:RUNLQJZLWKYDULRXV QRQSURILWVWRH[SDQGFLW\
VILEHUWRORZLQFRPHKRXVLQJXQLWV (GHQ+RXVLQJXQLWORZLQFRPHKRXVLQJ SURMHFWZDVFRPSOHWHGLQ6HSWHPEHU%URDGZD\SURMHFWLVH[SHFWHGWRJRRQOLQHILUVWTXDUWHU
vii
6WDIILQJDQG&ROOHFWLYH%DUJDLQLQJ±7KH&LW\UHPDLQVIRFXVHGRQDWWUDFWLQJGHGLFDWHGSURIHVVLRQDOVWRILOOFULWLFDO YDFDQWSRVLWLRQVZKLOHGHYHORSLQJDQGUHWDLQLQJFXUUHQWVWDIILQJLQDYHU\FRPSHWLWLYHHPSOR\PHQWPDUNHW7KH&LW\ QRZKDVH[LVWLQJDJUHHPHQWVLQSODFHZLWKDOOLWVEDUJDLQLQJXQLWV,%(:&$03,$))DQG932$
%8'*(7$5<&21752/
7KH&LW\PDLQWDLQVEXGJHWDU\FRQWUROVWKURXJKWKH&LW\&RXQFLO VDGRSWLRQRIDQDQQXDOEXGJHWDQGE\PDLQWDLQLQJ
DQHQFXPEUDQFHDFFRXQWLQJV\VWHP7KH9DOOHMR0XQLFLSDO&RGHUHTXLUHVWKH&LW\0DQDJHUWRSUHVHQWWKH$QQXDO %XGJHWWRWKH&LW\&RXQFLOIRUDSSURYDOGD\VSULRUWRWKHVW DUWRIWKHQHZILVFDO\HDU([SHQGLWXUHVIRU&LW\ RSHUDWLRQVDQGRWKHUSXUSRVHVLGHQWLILHGLQWKHDQQXDOEXGJHWF DQQRWOHJDOO\H[FHHGWKHEXGJHWHGDPRXQWV DSSURYHGE\WKH&LW\&RXQFLO7KH&LW\0DQDJHUPD\WUDQVIHUSDUWRUDOORIDQ\XQHQFXPEHUHGDSSURSULDWLRQEDODQFH DPRQJSURJUDPVZLWKLQDGHSDUWPHQWRIILFHRUDJHQF\E\UHVROXWLRQWRWKH&LW\&RXQFLO
8OWLPDWHEXGJHWDU\FRQWUROUHVLGHVDWWKHIXQGOHYHO
KRZHYHUWKH&LW\KDVDGRSWHGVHYHUDOEXGJHWDU\DSSURSULDWLRQ DQG WUDQVIHU SURFHGXUHV WR SURYLGH VWURQJ LQWHUQDO FRQWUROV ZKLOH HQFRXUDJLQJ LPSURYHG DFFRXQWDELOLW\ DQG DGPLQLVWUDWLYHUHVSRQVLYHQHVV$OOEXGJHWDU\WUDQVIHUVUHTXLUH WKH)LQDQFH'LUHFWRU VRUGHVLJQHH
VUHYLHZDQG
DSSURYDO$OOWUDQVIHUVRIDSSURSULDWLRQVDIIHFWLQJVDODULHVDQGEHQHILWVDOVRUHTXLUHWKH&LW\0DQDJHU VRUGHVLJQHH
V
UHYLHZDQGDSSURYDO
%XGJHWDU\FRQWUROLVHVWDEOLVKHGDWWKHIROORZLQJOHYHOV D
*HQHUDO)XQG±'HSDUWPHQWOHYHO
E
2WKHU)XQGV±)XQG
OHYHO
DQG&DSLWDO3URMHFWV±DW'HSDUWPHQWOHYHOZLWK&LW\0DQ DJHUVLJQDWXUHDSSURYDO7KH&LW\0DQDJHUPD\ DXWKRUL]HOLQHLWHPEXGJHWWUDQVIHUVZLWKLQD*HQHUDO)XQGGHSDUWPHQWRUZLWKLQDIXQGRWKHUWKDQWKH*HQHUDO)XQG FRQVLVWHQWZLWKWKH&LW\&KDUWHUWKH9DOOHMR0XQLFLSDO&RGHDQGEXGJHWUHVROXWLRQ
7KH&LW\DOVRXVHVHQFXPEUDQFHDFFRXQWLQJDVDQRWKHUWHFKQLTXH IRUDFFRPSOLVKLQJEXGJHWDU\FRQWURO$Q HQFXPEUDQFHLVDFRPPLWPHQWRIDIXWXUHH[SHQGLWXUHHDUPDUNHGIRUDSDUWLFXODUSXUSRVHDQGUHGXFHVWKHDPRXQW RIEXGJHWDYDLODEOHIRUJHQHUDOVSHQGLQJ$WWKHHQGRIWKHILVFDO\HDUHQFXPEHUHGDSSURSULDWLRQVDSSURSULDWLRQV IRUXQFRPSOHWHGFDSLWDO3DUWLFLSDWRU\%XGJHWLQJDQGJUDQWSUR MHFWVDUHFDUULHGIRUZDUGDQGEHFRPHSDUWRIWKH IROORZLQJ\HDU
VEXGJHWZKLOHDSSURSULDWLRQVWKDWKDYHQRWEHHQHQFXPEHUHGODSVH
7KH&LW\FRQWLQXHVWRPHHWLWVUHVSRQVLELOLW\IRUVRXQGILQDQFLDOPDQDJHPHQWDVGHPRQVWUDWHGE\WKHVWDWHPHQWV DQGVFKHGXOHVLQFOXGHGLQWKLVUHSRUW
VILQDQFLDOVHFWLRQ
,17(51$/&21752/
,QGHYHORSLQJDQGHQKDQFLQJWKH&LW\
VDFFRXQWLQJV\VWHPVLJQLILFDQWFRQVLGHUDWLRQLVJLYHQWRWKHDGHTXDF\RIWKH &LW\
VV\VWHPRILQWHUQDODFFRXQWLQJFRQWUROV,QWHUQDOFRQWURO VDUHGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFH UHJDUGLQJWKHVDIHJXDUGLQJRIDVVHWVDJDLQVWWKHORVVIURPXQDX WKRUL]HGXVHRUGLVSRVLWLRQDQGWKHUHOLDELOLW\RI ILQDQFLDOUHFRUGVWRSUHSDUHILQDQFLDOVWDWHPHQWVDQGPDLQWDLQDFFRXQWDELOLW\IRUDVVHWV7KHFRQFHSWRIUHDVRQDEOH DVVXUDQFHUHFRJQL]HVWKDWWKHFRVWRIFRQWUROVKRXOGQRWH[FHHGWKHEHQHILWVOLNHO\WREHGHULYHG7KHHYDOXDWLRQRI FRVWVDQGEHQHILWVUHTXLUHVHVWLPDWHVDQGMXGJPHQWVE\PDQDJHPHQW
$:$5'6
*29(510(17 ),1$1&( 2)),&(56 $662&,$7,21 2) 7+( 81,7(' 67$7(6 $1 ' &$1$'$ *)2$
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
:HDUHRQFHDJDLQSOHDVHGWRUHSRUWWKDWWKH*RYHUQPHQW)LQDQFH 2IILFHUV$VVRFLDWLRQRIWKH8QLWHG6WDWHVDQG &DQDGD
*)2$
DZDUGHG D Certificate of Achievement for Excellence in Financial Reporting W R W K H &LW\RI9DOOHMRIRULWV$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUWIRUWKHILVFDO\HDUHQGHG-XQH
7KH&HUWLILFDWHRI$FKLHYHPHQWLVDSUHVWLJLRXVQDWLRQDODZDUGUHFRJQL]LQJFRQIRUPDQFHZLWKWKHKLJKHVWVWDQGDUGV IRUSUHSDULQJVWDWHDQGORFDOJRYHUQPHQWILQDQFLDOUHSRUWV7R EHDZDUGHGD&HUWLILFDWHRI$FKLHYHPHQWD JRYHUQPHQWDOXQLWPXVWSXEOLVKDQHDVLO\UHDGDEOHDQGHIILFLHQWO\RUJDQL]HGDQQXDOFRPSUHKHQVLYHILQDQFLDOUHSRUW ZKRVHFRQWHQWVFRQIRUPWRSURJUDPVWDQGDUGV6XFKUHSRUWVPXVW VDWLVI\ERWKJHQHUDOO\DFFHSWHGDFFRXQWLQJ SULQFLSOHVDQGDSSOLFDEOHOHJDOUHTXLUHPHQWV7KH&LW\EHOLHYHV WKH$&)5DVRIILVFDO\HDUHQGHG-XQH FRQWLQXHVWRFRQIRUPWRWKH&HUWLILFDWHRI$FKLHYHPHQW3URJUDPUHTXLUHPHQWV viii
$&.12:/('*(0(176
7KHSUHSDUDWLRQRIWKLV$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUWZ RXOGQRWKDYHEHHQSRVVLEOHZLWKRXWWKH RXWVWDQGLQJHIIRUWVGHGLFDWLRQDQGWHDPZRUNWKURXJKRXWWKH\H DURIWKHHQWLUH)LQDQFH'HSDUWPHQWLQSDUWLFXODU WKH$FFRXQWLQJDQG$XGLWWHDPZLWKWKHFRRSHUDWLRQDQGDVVLVWDQFHRIDOO&LW\GHSDUWPHQWV
,DOVRUHFRJQL]HWKHSURIHVVLRQDOVXSSRUWDQGJXLGDQFHRIWKH&LW\ VDXGLWILUP/DQFH6ROO /XQJKDUG//3
)LQDOO\,ZRXOGOLNHWRH[SUHVVP\JUDWLWXGHWRWKH0D\RU5REH UW0F&RQQHOO&LW\&RXQFLODQG&LW\0DQDJHU0LNH 0DORQHIRUWKHLUYLVLRQDQGFRQWLQXHGVXSSRUWWRPDLQWDLQORQJWHUPILVFDOVWDELOLW\IRUWKH&LW\
5HVSHFWIXOO\VXEPLWWHG
5HNKD1D\DU
)LQDQFH'LUHFWRU
ix
*RYHUQPHQW)LQDQFH2IILFHUV$VVRFLDWLRQ
&HUWLILFDWHRI
$FKLHYHPHQW
IRU([FHOOHQFH
LQ)LQDQFLDO
5HSRUWLQJ
3UHVHQWHGWR
&LW\RI9DOOHMR
&DOLIRUQLD
)RULWV$QQXDO&RPSUHKHQVLYH
)LQDQFLDO5HSRUW
)RUWKH)LVFDO<HDU(QGHG
-XQH
([HFXWLYH'LUHFWRU&(2
x
&,7<&281&,/(/(&7('2)),&,$/6$1'0$1$*(0(17
DE'
D
Ed
0LNH0DORQH
&LW\0DQDJHU
9HURQLFD$)1HEE
&LW\$WWRUQH\
'DZQ*$EUDKDPVRQ
&LW\&OHUN
*LOOLDQ+D\HV
$VVLVWDQW&LW\0DQDJHU
7HUUDQFH'DYLV
$VVLVWDQW&LW\0DQDJHU
0LFKDHO1LPRQ
(FRQRPLF'HYHORSPHQW'LUHFWRU
5HNKD1D\DU
)LQDQFH'LUHFWRU
.\OH/RQJ
)LUH&KLHI
6WHSKDQLH6LIXHQWHV
+XPDQ5HVRXUFHV'LUHFWRU
1DYHHG$VKUDI
&KLHI,QQRYDWLRQ2IILFHU
&KULVWLQD5DWFOLIIH
3ODQQLQJ 'HYHORSPHQW
6HUYLFHV'LUHFWRU
-DVRQ7D
,QWHULP3ROLFH&KLHI
0HOLVVD7LJEDR
3XEOLF:RUNV'LUHFWRU
%HWK6FKRHQEHUJHU
:DWHU'LUHFWRU
5REHUW+0F&RQQHOO
0D\RU
5R]]DQD9HUGHU$OLJD(G'
9LFH0D\RU
'LVWULFW
'LRVGDGR³-5´0DWXODF
&RXQFLOPHPEHU
'LVWULFW
0LQD/RHUD'LD]
&RXQFLOPHPEHU
'LVWULFW
&KDUOHV3DOPDUHV
&RXQFLOPHPEHU
'LVWULFW
3HWHU%UHJHQ]HU
&RXQFLOPHPEHU
'LVWULFW
&ULVWLQD$UULROD
&RXQFLOPHPEHU
'LVWULFW
xi
&,7<:,'(25*$1,=$7,21&+$57
xii
()RXUWK6WUHHW6XLWH
6DQWD$QD&$
1%UHD%OYG6XLWH
%UHD&$
:DWHUZD\$YHQXH6XLWH
7KH:RRGODQGV7;
5LYHU3OD]D'U6XLWH
6DFUDPHQWR&$
$YHQLGDGHOD&DUORWDௗ6XLWH
/DJXQD+LOOV&$
ZZZOVOFSDVFRP
,1'(3(1'(17$8',7256¶5(3257
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI9DOOHMR&DOLIRUQLD
5HSRUWRQWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV
Opinions
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SHDFWLYLWLHV HDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQGLQIRUPDWLRQRI&LW\RI9DOOHMR&DOLIRUQLD WKH³&LW\´
DVRIDQG
IRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH &LW\¶VEDVLFILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKHWDEOHRIFRQWHQWV
,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHV HQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKHUHVSHFWLYH ILQDQFLDOSRVLWLRQRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVV W\SHDFWLYLWLHVHDFKPDMRUIXQGDQGWKHDJJUHJDWH UHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\DVRI-XQHDQGWKHUHVSHFWLYHFKDQJHVLQILQDQFLDOSRVLWLRQDQG ZKHUHDSSOLFDEOHFDVKIORZVWKHUHRIIRUWKH\HDUWKHQHQGHGL QDFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\ DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD
:HGLGQRWDXGLWWKHILQDQFLDOVWDWHPHQWVRIWKH9DOOHMR)ORRG DQG:DVWHZDWHU'LVWULFW 9):'
DGLVFUHWHO\
SUHVHQWHGFRPSRQHQWXQLWDVRI-XQH7KRVHVWDWHPHQWV ZHUHDXGLWHGE\RWKHUDXGLWRUVZKRVHUHSRUW KDVEHHQIXUQLVKHGWRXVDQGRXURSLQLRQVLQVRIDUDVLWUHODWHVWRWKHDPRXQWVLQFOXGHGIRU9):'DUHEDVHGVROHO\ RQWKHUHSRUWRIWKHRWKHUDXGLWRUV
Basis for Opinions
:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQ Government Auditing Standards LVVXHGE\WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV2XUUHVSRQVLELOLWLHV XQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH $XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLWRIWKH)LQDQFLDO6WDWH PHQWVVHFWLRQRIRXUUHSRUW:HDUHUHTXLUHGWREH LQGHSHQGHQWRIWKH&LW\DQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLE LOLWLHVLQDFFRUGDQFHZLWKWKHUHOHYDQWHWKLFDO UHTXLUHPHQWVUHODWLQJWRRXUDXGLW:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWH WRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQV
Emphasis of Matter
Change in Accounting Principle
$V GHVFULEHG LQ 1RWH WR WKH ILQDQFLDO VWDWHPHQWV LQ WKH &LW\ DGRSWHG QHZ DFFRXQWLQJ JXLGDQFH *$6%6WDWHPHQW1R
Subscription Based Information Technology Arrangements2XURSLQLRQLVQRWPRGLILHG ZLWKUHVSHFWWRWKLVPDWWHU
Responsibilities of Management for the Financial Statements 0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWK DFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDDQGIRUWKHGHVLJQLPSOHPHQWDWLRQDQG PDLQWHQDQFHRILQWHUQDOFRQWUROUHOHYDQWWRWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHH IURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
1
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI9DOOHMR&DOLIRUQLD
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRUHYHQWV FRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRU WZHOYHPRQWKVEH\RQGWKHILQDQFLDOVWDWHPHQWGDWHLQFOXGLQJDQ \FXUUHQWO\NQRZQLQIRUPDWLRQWKDWPD\UDLVH VXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU
Auditor’s Responsibilities for the Audit of the Financial Statements 2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLV VXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHVRXURSLQLRQV 5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUHLVQRWDJXDUDQWHH WKDWDQDXGLWFRQGXFWHGLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGD XGLWLQJVWDQGDUGVDQG Government Auditing Standards ZLOO DOZD\V GHWHFW D PDWHULDO PLVVWDWHPHQW ZKHQ LW H[LVWV 7KH ULVN RI QRW GHWHFWLQJ D PDWHULDO PLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQIRUJHU\ LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDOFRQWURO0LVVWDWHPHQWVDUHFRQVLGHUHGPDWHULDO LIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\ZRXOGLQIOXHQFHWKHMXGJPHQWPDGHE\ DUHDVRQDEOHXVHUEDVHGRQWKHILQDQFLDOVWDWHPHQWV
,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDX GLWLQJVWDQGDUGVDQG Government Auditing StandardsZH
x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSW LFLVPWKURXJKRXWWKHDXGLW
x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU DQGGHVLJQDQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHVLQFOXGHH[DPLQLQJRQD WHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDOVWDWHPHQWV
x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDX GLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUH DSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH &LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG
x (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGW KHUHDVRQDEOHQHVVRIVLJQLILFDQWDFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWV
x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYH QWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVH VXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOHSHULRGRIWLPH
:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKHSODQQHG VFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUVWKDWZHLGHQWLILHG GXULQJWKHDXGLW
Required Supplementary Information
$FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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¶VUHV SRQVHVWRRXULQTXLULHVWKHEDVLFILQDQFLDO VWDWHPHQWVDQGRWKHUNQRZOHGJHZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV:HGRQRWH[SUHVV DQRSLQLRQRUSURYLGHDQ\DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVH WKHOLPLWHGSURFHGXUHVGRQRWSURYLGHXVZLWK VXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH 2
7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI9DOOHMR&DOLIRUQLD
Supplementary Information
2XUDXGLWZDVFRQGXFWHGIRUWKHSXUSRVHRIIRUPLQJRSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVWKDWFROOHFWLYHO\FRPSULVH WKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWV7KHDFFRPSDQ\LQJFRPELQL QJDQGLQGLYLGXDOIXQGILQDQFLDOVWDWHPHQWVDQG VFKHGXOHV
VXSSOHPHQWDU\LQIRUPDWLRQ
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
Other Information
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQFRPSULVHV WKHLQWURGXFWRU\DQGVWDWLVWLFDOVHFWLRQVEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRXUDXGLWRU¶VUHSRUW WKHUHRQ2XURSLQLRQVRQWKHEDVLFILQDQFLDOVWDWHPHQWVGRQRWFRYHUWKHRWKHULQIRUPDWLRQDQGZHGRQRWH[SUHVV DQRSLQLRQRUDQ\IRUPRIDVVXUDQFHWKHUHRQ
,QFRQQHFWLRQZLWKRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWVRXUUHVSRQVLELOLW\LVWRUHDGWKHRWKHULQIRUPDWLRQDQG FRQVLGHUZKHWKHUDPDWHULDOLQFRQVLVWHQF\H[LVWVEHWZHHQWKHRWKHULQIRUPDWLRQDQGWKHEDVLFILQDQFLDOVWDWHPHQWV RUWKHRWKHULQIRUPDWLRQRWKHUZLVHDSSHDUVWREHPDWHULDOO\PLVVWDWHG,IEDVHGRQWKHZRUNSHUIRUPHGZHFRQFOXGH WKDWDQXQFRUUHFWHGPDWHULDOPLVVWDWHPHQWRIWKHRWKHULQIRUPDWLRQH[LVWVZHDUHUHTXLUHGWRGHVFULEHLWLQRXUUHSRUW
2WKHU5HSRUWLQJ5HTXLUHGE\Government Auditing Standards
,QDFFRUGDQFHZLWKGovernment Auditing StandardsZHKDYHDOVRLVVXHGRXUUHSRUWGDWHG'HFHPEHU RQ
RXUFRQVLGHUDWLRQRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGRQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQ SURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQW VDQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLV VROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWV RIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ RURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWS HUIRUPHGLQDFFRUGDQFHZLWK Government Auditing StandardsLQFRQVLGHULQJ&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH
6DFUDPHQWR&DOLIRUQLD
'HFHPEHU
3 7+,63$*(,17(17,21$//</()7%/$1.
4
OFFICEOFTHEFINANCEDIRECTORȉ555SantaClaraStreetȉVallejoȉCAȉ94590ȉ707.648.4592
0$1$*(0(17¶6',6&866,21$1'$1$/<6,6
)LVFDO<HDU(QGHG-XQH
7KLVQDUUDWLYHRIWKH&LW\RI9DOOHMR¶VILQDQFLDOSHUIRUPDQFHS URYLGHVDQRYHUYLHZDQGDQDO\VLVRIWKH &LW\¶VILQDQFLDODFWLYLWLHVIRUWKH\HDUHQGHG-XQH :HHQFRXUDJHUHDGHUVWRFRQVLGHUWKH LQIRUPDWLRQSUHVHQWHGKHUHLQFRQMXQFWLRQZLWKWKH7UDQVPLWWDO /HWWHUWKH%DVLF)LQDQFLDO6WDWHPHQWV DQGWKHDFFRPSDQ\LQJQRWHVWRWKHILQDQFLDOVWDWHPHQWV
),1$1&,$/+,*+/,*+76
*RYHUQPHQWZLGH
IXOODFFUXDOEDVLV
x 7KH&LW\¶VDVVHWVDQGGHIHUUHGRXWIORZVH[FHHGHGLWVOLDELOLWL HVDQGGHIHUUHGLQIORZVDWWKHFORVHRI WKHILVFDO\HDUE\PLOOLRQ
QHWSRVLWLRQ
7KLVDPRXQWLPSURYHGE\PLOOLRQIURPWKH
SULRUILVFDO\HDU
x 7KH&LW\UHFHLYHGPLOOLRQLQIXQGLQJWKURXJKWKH$PHULFD Q5HVFXH3ODQ$FW $53$
IURP
SUHYLRXV\HDUV7KLVRQHWLPHIXQGLQJZHUHVWUDWHJLFDOO\DOORFD WHGE\WKH&LW\&RXQFLOWRZDUGVD FRPSUHKHQVLYHSRUWIROLRRISURMHFWV7KHVHLQLWLDWLYHVFDUHIXOO\VHOHFWHGWRPHHWWKHGLYHUVHQHHGV RIWKHFRPPXQLW\DUHVODWHGIRULPSOHPHQWDWLRQWKURXJK'HFHPEH U$VRIWKHFORVHRIWKH FXUUHQWILVFDO\HDUWKH&LW\VSHQWPLOOLRQRIWKHVHDOORFDWHG$53$IXQGV
x 7KH&LW\LPSOHPHQWHGWKH*RYHUQPHQW$FFRXQWLQJ6WDQGDUGV%RDUG *$6%
6WDWHPHQW1R
HIIHFWLYH-XO\ZKLFKUHTXLUHVWKDW6XEVFULSWLRQ%DVHG,QIRUPDWLRQ7HFKQRORJ\$UUDQJHPHQWV
6%,7$
EHUHSRUWHGLQWKHILQDQFLDOVWDWHPHQWV$QLQLWLDOLQWDQJLEOH ULJKWWRXVH
VXEVFULSWLRQDVVHW
DORQJZLWKDQLQLWLDOVXEVFULSWLRQOLDELOLW\RIPLOOLRQZH UHUHFRUGHGGXULQJWKHLPSOHPHQWDWLRQ $GGLWLRQDOLQIRUPDWLRQDQGGLVFXVVLRQRI6%,7$FDQEHIRXQGLQ1RWHFWRWKH)LQDQFLDO6WDWHPHQWV
)XQGOHYHO
PRGLILHGDFFUXDOEDVLV
x $VRI-XQHWKH&LW\¶VJRYHUQPHQWDOIXQGVUHSRUWHGFRPELQHGIXQGEDODQFHRIPLOOLRQ PLOOLRQKLJKHUWKDQWKHSULRU\HDUEDODQFH$SSUR[LPDWHO\RIWKLVDPRXQWRU PLOOLRQ
LVFDWHJRUL]HGDVXQDVVLJQHGIXQGVSURYLGLQJWKH&LW\ZLWKGLV FUHWLRQDU\UHVRXUFHVIRUWDUJHWHG VSHQGLQJLQLWLDWLYHV
x 7KH*HQHUDO)XQGFRQFOXGHGWKHILVFDO\HDUZLWKDUREXVWHQGLQJIXQGEDODQFHUHDFKLQJPLOOLRQ PDUNLQJDQRWDEOHLQFUHDVHRIPLOOLRQRUFRPSDUHGWRWKHSUHYLRXVILVFDO\HDU:LWKLQ WKLVVXEVWDQWLDOEDODQFHPLOOLRQRU
LVXQDVVLJQHG7KLVXQDVVLJQHGSRUWLRQUHSUHVHQWV
RIWKH)LVFDO<HDUEXGJHWHGH[SHQGLWXUHVLQFOXVLYHRI0HDVXUH%SURJUDPVZKLFKVXUSDVVHV WKH&LW\
VJRDODQG*)2$UHFRPPHQGDWLRQV7KH&LW\
VFRPPLWPHQW WRPDLQWDLQLQJDUHVHUYHOHYHO
H[FHHGLQJWKHSUHVFULEHGEHQFKPDUNUHIOHFWVDSUXGHQWDSSUR DFKWRILQDQFLDOVWHZDUGVKLSDQG HQVXUHVDVROLGIRXQGDWLRQIRUPHHWLQJIXWXUHILQDQFLDOREOLJDWLRQVDQGFRPPXQLW\QHHGV 5
x 7KHSDVVDJHRI0HDVXUH3LQWURGXFHGDQHZWUDQVDFWLRQWD[RI HOHYDWLQJWKHFLW\ VRYHUDOO
WD[UDWHWR
HIIHFWLYHDVRI$SULO7KLVVWUDWHJLFPRYHZDVDLPHGDWSURYLGLQJDGGLWLRQDO ILQDQFLDOUHVRXUFHVWRVXSSRUWHVVHQWLDOVHUYLFHVDQGFRPPXQLW\LQLWLDWLYHV,QWKHILUVWWKUHHPRQWKV RILWVLPSOHPHQWDWLRQ0HDVXUH3KDGSURYHQWREHDVLJQLILFDQWFRQWULEXWRUZLWKWKHFLW\UHFHLYLQJDQ DGGLWLRQDOPLOOLRQLQVDOHVWD[UHYHQXHV
x 7KH:DWHU)XQGUHSRUWHGDQXQUHVWULFWHGQHWSRVLWLRQRIPLOOLRQ7KLVSODFHGWKH:DWHU)XQGLQ DQDGYDQWDJHRXVSRVLWLRQWRKHOSDGGUHVVLWVRSHUDWLRQDODQGFDSLWDOUHTXLUHPHQWV
'HWDLOHGGLVFXVVLRQRIWKHFKDQJHVLQQHWSRVLWLRQDQGIXQGEDO DQFHVFDQEHIRXQGLQWKHVXEVHTXHQW VHFWLRQV
29(59,(:2)7+(),1$1&,$/67$7(0(176
7KHILQDQFLDOVHFWLRQRIWKLVUHSRUWLVSUHVHQWHGLQWKHIROORZLQJVHFWLRQV
7KLVLQWURGXFWRU\FRPPHQWDU\Management’s Discussion and Analysis
Basic Financial StatementsLQFOXGLQJ
D *RYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV
E )XQGILQDQFLDOVWDWHPHQWV
F 1RWHV
Required Supplementary Information
D 1HW23(%/LDELOLW\DQG&RQWULEXWLRQ6FKHGXOHV
b. 1HW3HQVLRQ/LDELOLW\DQG&RQWULEXWLRQ6FKHGXOHV
Supplemental InforPDWLRQ
D 1RQPDMRUJRYHUQPHQWDOIXQGV
E ,QWHUQDOVHUYLFHIXQGV
F &XVWRGLDOIXQGV
%$6,&),1$1&,$/67$7(0(176
7KLVGLVFXVVLRQDQGDQDO\VLVLVLQWHQGHGWRVHUYHDVLQWURGXFWLRQWRWKH&LW\¶V%DVLF)LQDQFLDO6WDWHPHQWV FRPSULVHGRIWKH*RYHUQPHQWZLGH)LQDQFLDO6WDWHPHQWVDQGWKH)XQG)LQDQFLDO6WDWHPHQWV7KHVHWZR VHWVRIILQDQFLDOVWDWHPHQWVSURYLGHWZRGLIIHUHQWYLHZVRIWKH &LW\¶VILQDQFLDODFWLYLWLHVDQGILQDQFLDO SRVLWLRQ
Government-wide Financial Statements
7KH*RYHUQPHQWZLGH)LQDQFLDO6WDWHPHQWVSURYLGHDORQJWHUPYLHZRIWKH&LW\¶VDFWLYLWLHVDVDZKROH 7KH6WDWHPHQWRI1HW3RVLWLRQSURYLGHVLQIRUPDWLRQDERXWILQDQFLDOSRVLWLRQLQFOXGLQJFDSLWDODVVHWVDQG ORQJWHUPOLDELOLWLHVRQDIXOODFFUXDOEDVLVVLPLODUWRWKDWXVHGE\FRPPHUFLDOHQWHUSULVHV7KH6WDWHPHQW RI$FWLYLWLHVSURYLGHVLQIRUPDWLRQDERXWWKH&LW\¶VUHYHQXHVDQ GH[SHQVHVDOVRRQDIXOODFFUXDOEDVLV ZLWKHPSKDVLVRQPHDVXULQJWKHQHWUHYHQXHVDQGH[SHQVHVRI&LW\SURJUDPV,QIRUPDWLRQLVSUHVHQWHG ERWKLQWRWDODQGVHSDUDWHO\IRUJRYHUQPHQWDODFWLYLWLHVZKLFK DUHJHQHUDOO\VXSSRUWHGE\WD[HVDQG JUDQWVDQGIRUEXVLQHVVW\SHDFWLYLWLHVZKLFKDUHJHQHUDOO\VXSSRUWHGE\XVHUIHHV7KH&LW\¶VDFWLYLWLHV LQFOXGH WKH DFWLYLWLHV RI PXOWLSOH OHJDO HQWLWLHV DQG WKH 9DOOHMR )ORRG DQG :DVWHZDWHU 'LVWULFW
9):'IRUPHUO\9DOOHMR6DQLWDWLRQDQG)ORRG&RQWURO'LVWULFW DGLVFUHWHO\SUHVHQWHGFRPSRQHQWXQLW
EHFDXVHWKH&LW\LVHLWKHUILQDQFLDOO\DFFRXQWDEOHIRUWKHVHHQWLWLHVRUKDVFRQWURORIWKHJRYHUQLQJERDUG RIWKHVHHQWLWLHV
Fund Financial Statements
7KH)XQG)LQDQFLDO6WDWHPHQWVUHSRUWWKH&LW\¶VRSHUDWLRQVLQP RUHGHWDLOWKDQWKHJRYHUQPHQWZLGH VWDWHPHQWV7KHIRFXVLVRQWKHLQGLYLGXDOIXQGVWKDWDUHXVHG WRUHSRUWWKHVWDWXVRIUHVWULFWHGRU RWKHUZLVH VHJUHJDWHG UHVRXUFHV DQG DOVR WR GHPRQVWUDWH FRPSOLDQFH ZLWK ILQDQFHUHODWHG OHJDO UHTXLUHPHQWV$OORIWKHIXQGVRIWKH&LW\FDQEHGLYLGHGLQWRWKHIROORZLQJWKUHHFDWHJRULHV
6
x *RYHUQPHQWDO)XQGV±*RYHUQPHQWDOIXQGVDFFRXQWIRUHVVHQWLDOO\WKHVDPHIXQFWLRQ VUHSRUWHGDV JRYHUQPHQWDO DFWLYLWLHV LQ WKH *RYHUQPHQWZLGH )LQDQFLDO 6WDWHPHQWV +RZHYHU XQOLNH WKH *RYHUQPHQWZLGH)LQDQFLDO6WDWHPHQWVJRYHUQPHQWDOIXQGILQDQFLDOVWDWHPHQWVIRFXVRQQHDUǦWHUP LQIORZVDQGRXWIORZVRIVSHQGDEOHUHVRXUFHVDVZHOODVRQEDODQFHVRIVSHQGDEOHUHVRXUFHVDYDLODEOH DWWKHHQGRIWKHILVFDO\HDU
0RGLILHG$FFUXDO%DVLVRI$FFRXQWLQJ
6XFKLQIRUPDWLRQPD\EHXVHIXO
LQHYDOXDWLQJWKH&LW\¶VQHDUǦWHUPILQDQFLQJUHTXLUHPHQWV7RXQGHUVWDQGWKHORQJǦWHUPLPSDFWRIWKH &LW\¶V QHDUǦWHUP ILQDQFLQJ GHFLVLRQV LW LV XVHIXO WR FRPSDUH WKH LQIRUPDWLRQ SUHVHQWHG IRU JRYHUQPHQWDO IXQGV ZLWK VLPLODU LQIRUPDWLRQ SUHVHQWHG IRU JRYHUQPHQWDO DFWLYLWLHV LQ WKH *RYHUQPHQWZLGH)LQDQFLDO6WDWHPHQWV%RWKWKH*RYHUQPHQWDO)XQ GV%DODQFH6KHHWDQGWKH *RYHUQPHQWDO)XQGV6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHVSURYLGH DUHFRQFLOLDWLRQWRIDFLOLWDWHWKLVFRPSDULVRQEHWZHHQJRYHUQPHQWDOIXQGVDQGJRYHUQPHQWDODFWLYLWLHV
x 3URSULHWDU\)XQGV±7KH&LW\PDLQWDLQVWZRGLIIHUHQWW\SHVRISURSULHWDU\IXQGV HQWHUSULVHIXQGVDQG
LQWHUQDOVHUYLFHIXQGV
(QWHUSULVH)XQGVUHSRUWWKHVDPHIXQFWLRQVSUHVHQWHGDVEXVLQHVVǦW\SHDFWLYLWLHVLQWKH*RYHUQPHQW ZLGH)LQDQFLDO6WDWHPHQWV7KH&LW\KDVILYHHQWHUSULVHIXQGVZKLFKDUHDOOUHSRUWHGDVPDMRUIXQGV
,QWHUQDO6HUYLFH)XQGVDUHDQDFFRXQWLQJGHYLFHXVHGWRDFFXPXO DWHDQGDOORFDWHFRVWVLQWHUQDOO\ DPRQJWKH&LW\¶VYDULRXVIXQFWLRQV7KH&LW\¶VLQWHUQDOVHUYLFH IXQGVDFFRXQWIRUIOHHWPDLQWHQDQFH DQGUHSODFHPHQWULVNPDQDJHPHQWDQGLQVXUDQFHSD\UROODQGUHW LUHHKHDOWKEHQHILWV6LQFHWKHVH VHUYLFHV SUHGRPLQDQWO\ EHQHILW JRYHUQPHQWDO UDWKHU WKDQ EXVLQHVVǦW\SH IXQFWLRQV WKH\ DUH FRQVROLGDWHGZLWKLQJRYHUQPHQWDODFWLYLWLHVLQWKH*RYHUQPHQWZLGH)LQDQFLDO6WDWHPHQWV
3URSULHWDU\ IXQGV SURYLGH WKH VDPH W\SH RI LQIRUPDWLRQ DV WKH *RYHUQPHQWZLGH )LQDQFLDO 6WDWHPHQWV EXW LQ PRUH GHWDLO 7KH SURSULHWDU\ IXQGV ILQDQFLDO VWDWHPHQWV SURYLGH VHSDUDWH LQIRUPDWLRQIRUHDFKRIWKHHQWHUSULVHIXQGV'DWDIRUWKHIRXULQWHUQDOVHUYLFHIXQGVDUHFRPELQHGLQWR DVLQJOHDJJUHJDWHGSUHVHQWDWLRQLQWKHSURSULHWDU\IXQGVILQDQFLDOVWDWHPHQWV
x )LGXFLDU\)XQGV±)LGXFLDU\IXQGVDFFRXQWIRUUHVRXUFHVKHOGIRUWKHEHQHILWR ISDUWLHVRXWVLGHWKH &LW\)LGXFLDU\IXQGVDUHQRWUHIOHFWHGLQWKH*RYHUQPHQWZLGH )LQDQFLDO6WDWHPHQWVEHFDXVHWKH UHVRXUFHVRIWKRVHIXQGVDUHQRWDYDLODEOHWRVXSSRUWWKH&LW\¶ VRZQSURJUDPV)LGXFLDU\IXQG DFFRXQWLQJLVVLPLODUWRSURSULHWDU\IXQGDFFRXQWLQJ7KH&LW\ KDVWZRW\SHVRIILGXFLDU\IXQGV WKH
FXVWRGLDOIXQGVDQGWKHSULYDWHSXUSRVHWUXVWIXQGV
Notes to the Financial Statements
7KHQRWHVSURYLGHDGGLWLRQDOLQIRUPDWLRQWKDWLVHVVHQWLDOWRD IXOOXQGHUVWDQGLQJRIWKHGDWDSURYLGHGLQ WKH*RYHUQPHQWZLGHDQG)XQG)LQDQFLDO6WDWHPHQWV7KHQRWHVWRWKH)LQDQFLDO6WDWHPHQWVIROORZWKH EDVLFILQDQFLDOVWDWHPHQWV
27+(5,1)250$7,21
,QDGGLWLRQWRWKHEDVLFILQDQFLDOVWDWHPHQWVDQGDFFRPSDQ\LQJ QRWHVWKLVUHSRUWDOVRSUHVHQWVFHUWDLQ UHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQFRQFHUQLQJWKH&LW\¶VSURJUH VVLQIXQGLQJLWVREOLJDWLRQWRSURYLGH SHQVLRQDQGUHWLUHHPHGLFDOEHQHILWVWRLWVHPSOR\HHV5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQIROORZVWKH QRWHVWRWKHILQDQFLDOVWDWHPHQWV6XSSOHPHQWDU\LQIRUPDWLRQR QQRQPDMRUJRYHUQPHQWDOIXQGVDQG LQWHUQDOVHUYLFHIXQGVDUHDOVRSUHVHQWHGLPPHGLDWHO\IROORZLQJWKHUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ RQSHQVLRQV
7
),1$1&,$/$1$/<6,62)7+(&,7<$6$:+2/(
%HORZLVDVXPPDU\RIWKH&LW\¶VJRYHUQPHQWZLGHQHWSRVLWLRQD VRI-XQHDQGDV PHDVXUHGRQDIXOODFFUXDOEDVLVRIDFFRXQWLQJ2YHUWLPHLQFU HDVHVRUGHFUHDVHVLQQHWSRVLWLRQPD\ VHUYHDVDXVHIXOLQGLFDWRUDVWRZKHWKHUWKH&LW\¶VILQDQFLDOSRVLWLRQLVLPSURYLQJRUZHDNHQLQJ
&XUUHQWDQGRWKHUDVVHWVLQLQFUHDVHGE\PLOOLRQRURYHUWKHSULRU\HDUSULPDULO\GXHWR FDVKDQGLQYHVWPHQWV&DVKLQIORZVIURPDOOUHYHQXHVRXUFHVFRQWLQXHGWRRXWSDFHFDVKRXWIORZVPRVWO\ GXHWRWKHGHOD\HGLPSOHPHQWDWLRQRIWKH&LW\¶VFDSLWDOSURMHFWVDQG$53$IXQGHGSURJUDPV
&DSLWDODVVHWVGHFUHDVHGE\PLOOLRQPDLQO\GXHWRWKHVDOHRI1RUWK0DUH,VODQGSDUFHOV
7KHVLJQLILFDQWFKDQJHVLQ'HIHUUHG2XWIORZV/LDELOLWLHVDQG 'HIHUUHG,QIORZVZHUHSULPDULO\UHODWHGWR SHQVLRQ7KLVYDULDWLRQZDVDVVRFLDWHGZLWKWKHDQQXDODGMXVWPHQWVIRULQWHUHVWFKDUJHGWRWRWDOSHQVLRQ OLDELOLW\LPSDFWRILQYHVWPHQWORVVHVDQGFKDQJHVLQDFWXDULDO DVVXPSWLRQVGXULQJWKHPHDVXUHPHQW SHULRG
*RYHUQPHQWDO % XV LQHV V W\SH *RYHUQPHQWZLGH
$FWLYLWLHV $FWLYLWLHV 7RWDOV ,QFUHDV H
'HFUHDVH
$VVHWV
&XUUHQWDQGRWKHUDVVHWV
&DSLWDODVVHWV
7RWDODVVHWV
'HIHUUHG2XWIORZV RI5HV RXUFHV
8QDPRUWL]HGORVVRQUHIXQGLQJRIGHEW
5HODWHGWRSHQVLRQV
5HODWHGWR23(%
7RWDOGHIHUUHGRXWIORZV /LDELOLWLHV
&XUUHQWDQGRWKHUOLDELOLWLHV
1HWSHQVLRQOLDELOLW\
2WKHUORQJWHUPOLDELOLWLHV
7RWDOOLDELOLWLHV
'HIHUUHG,QIORZV RI5HV RXUFHV
5HODWHGWRSHQVLRQV
5HODWHGWR23(%
5HODWHGWROHDVHV
7RWDOGHIHUUHGLQIORZV
1HWSRVLWLRQ
1HWLQYHVWPHQWLQFDSLWDODVVHWV
5HVWULFWHG
8QUHVWULFWHG
7RWDOQHWSRVLWLRQ
6WDWHPHQWRI1HW3RV LWLRQ
DVRI-XQHDQG
,QPLOOLRQV
8
$VQRWHGHDUOLHUWKH&LW\¶VDVVHWVDQGGHIHUUHGRXWIORZVH[FHH GHGLWVOLDELOLWLHVDQGGHIHUUHGLQIORZVDW WKHFORVHRIWKHILVFDO\HDUE\PLOOLRQ
QHWSRVLWLRQ
7KLVDPRXQWLQFUHDVHGE\PLOOLRQRU
IURPSULRU\HDUDQGLVFRPSULVHGRIWKHIROORZLQJPDMRUFRPSRQHQWV
x 1HWLQYHVWPHQWLQFDSLWDODVVHWVGHFUHDVHGE\
PLOOLRQWR
PLOOLRQGXHWRWKHVDOHRI
1RUWK0DUH,VODQGSDUFHOV7KH&LW\XVHVWKHVHFDSLWDODVVHWVWRSURYLGHVHUYLFHVWRLWVUHVLGHQWVDQG RWKHUVWDNHKROGHUV$FFRUGLQJO\WKHVHDVVHWVDUHQRWDYDLODEO HIRUIXWXUHVSHQGLQJ$OWKRXJKWKH &LW\¶VLQYHVWPHQWLQLWVFDSLWDODVVHWVLVUHSRUWHGQHWRIUHOD WHGGHEWWKHUHVRXUFHVQHHGHGWRUHSD\ WKLVGHEWPXVWEHSURYLGHGIURPRWKHUVRXUFHVDVWKHFDSLWDOD VVHWVWKHPVHOYHVFRXOGQRWEHXVHG WROLTXLGDWHWKHVHOLDELOLWLHV
x 5HVWULFWHGQHWSRVLWLRQLQFUHDVHGE\PLOOLRQWRP LOOLRQ7KHVHDVVHWVDUHVXEMHFWWR DJUHHPHQWVZLWKFUHGLWRUVGHYHORSHUVJUDQWRUVRUODZVRUUHJ XODWLRQVRIRWKHUJRYHUQPHQWV%\ GHILQLWLRQWKH&LW\FDQQRWUHPRYHWKHVHUHVWULFWLRQVDVWKH\DUHLPSRVHGE\SDUWLHVRXWVLGHWKH&LW\
x 7KHXQUHVWULFWHGQHWGHILFLWLPSURYHGIURPPLOOLRQLQWRPLOOLRQLQ7KLVGHILFLW ZDVSULPDULO\GXHWRUHFRJQLWLRQRIQHWSHQVLRQREOLJDWLRQVIRU WKH6DIHW\DQG0LVFHOODQHRXVSODQV $GGLWLRQDOLQIRUPDWLRQRQWKHQHWSHQVLRQOLDELOLW\FDQEHIRXQGLQ1RWHWRWKH)LQDQFLDO6WDWHPHQWV DQGUHODWHGWUHQGLQIRUPDWLRQLVLQFOXGHGLQ56,VHFWLRQ
*RYHUQPHQWDO$FWLYLWLHV
7KHIROORZLQJDQDO\VLVIRFXVHVRQWKHFKDQJHVLQQHWSRVLWLRQRIWKH&LW\¶VJRYHUQPHQWDODFWLYLWLHVIRUWKH \HDUVHQGHG-XQHDQG
*RYHUQPHQWDO$FWLYLWLHV
$PRXQW
5HYHQXHV
3URJUDPUHYHQXHV
&KDUJHVIRUVHUYLFHV 2SHUDWLQJJUDQWVDQGFRQWULEXWLRQV
&DSLWDOJUDQWVDQGFRQWULEXWLRQV
7RWDOSURJUDPUHYHQXHV
*HQHUDOUHYHQXHV
3URSHUW\UHODWHGWD[HV
6DOHVDQGWUDQVDFWLRQWD[HV
8WLOLW\XVHUVWD[DQGRWKHUV
,QYHVWPHQWHDUQLQJVDQGRWKHU
7RWDOJHQHUDOUHYHQXHV
7RWDOUHYHQXHV
([SHQV HV
$GPLQLVWUDWLRQ
&RPPXQLW\GHYHORSPHQW
3ODQQLQJDQGGHYHORSPHQWVHUYLFHV
)LUHVHUYLFHV
3ROLFHVHUYLFHV
3XEOLFZRUNV
,QWHUHVWRQORQJWHUPGHEW
7RWDOH[SHQVHV
([FHVVEHIRUHVSHFLDOLWHPDQGWUDQVIHUV 6SHFLDOLWHP
7UDQVIHUV
&KDQJHLQQHWSRV LWLRQ
1HWSRVLWLRQEHJLQQLQJDVUHVWDWHG
1HWSRV LWLRQHQGLQJ
,QFUHDV H
'HFUHDV H
9
*RYHUQPHQWDODFWLYLWLHVLQFUHDVHGWKH&LW\¶VQHWSRVLWLRQE\ PLOOLRQGULYHQE\WKHJURZWKLQ WRWDOUHYHQXHV
Revenues
5HYHQXHVDUHGLYLGHGLQWRWZRFDWHJRULHV
3URJUDP5HYHQXHVZKL FKDUHWKHUHYHQXHVGHULYHGGLUHFWO\ IURP WKH IXQFWLRQDO SURJUDPV RU IURP SDUWLHV RXWVLGH WKH &LW\¶V WD[SD\HUV RU FLWL]HQU\ DQG
*HQHUDO5HYHQXHVZKLFKDUHWKHUHYHQXHVWKDWGRQRWPHHWWKHUHTXLUHPHQWVRISURJUDPUHYHQXHPRVW RIZKLFKDUHWD[HV
3URJUDP5HYHQXHVZHUHXSPLOOLRQRUWR
PLOOLR Q&DSLWDOJUDQWVLQFUHDVHGE\
PLOOLRQGXHWRWKHPLOOLRQUHFHLSWRI$53$JUDQWIRUWKH%URDGZD\SURMHFW&KDUJHVIRUVHUYLFHV LQFUHDVHGE\PLOOLRQDWWULEXWHGWRIHHVGULYHQE\KLJKHUFRPPHUFLDOGHYHORSPHQWDFWLYLWLHVGXULQJWKH \HDUVXFKLQFOXGLQJ&RVWFR2DNZRRG$SDUWPHQWVDQG%URDGZD\SURMHFWV
7RWDO*HQHUDO5HYHQXHVRIPLOOLRQLQFUHDVHGE\ PLO OLRQIURPSULRU\HDU7KHVHUHYHQXHV
LQFOXGHGJHQHUDOWD[HVZKLFKSURYLGHGWKH&LW\&RXQFLOZLWKWKHPRVWGLVFUHWLRQDU\VSHQGLQJDELOLW\7KH PRVWVLJQLILFDQWIDFWRUVLQWKH\HDURYHU\HDUFKDQJHLQ*HQHUDO5HYHQXHVZHUHDVIROORZV
x 3URSHUW\WD[UHYHQXHVLQFUHDVHGPLOOLRQRUWR PLOOLRQDVSURSHUW\YDOXHVFRQWLQXHG WRULVHIURPFKDQJHVLQRZQHUVKLS
x 6DOHVDQGWUDQVDFWLRQWD[UHYHQXHVLQFUHDVHGE\PLOOLRQ RUWRPLOOLRQDWWULEXWHGWR WKHQHZO\DSSURYHG0HDVXUH3VDOHVWD[
x ,QYHVWPHQWHDUQLQJVDQGRWKHUVJUHZE\
PLOOLRQ7KHLQFUHDVHLQLQYHVWPHQWHDUQLQJVZHUHGXH WRWKHSULRUILVFDO\HDU¶VVLJQLILFDQWXQUHDOL]HGORVVDGMXVWPH QWDVDUHVXOWRILQYHVWPHQWPDUNHW IOXFWXDWLRQV2WKHUVLQFUHDVHGPDLQO\GXHWRWKHRQHWLPHPRQLHVUHFHLYHGIRU0RQVDQWRVHWWOHPHQW DQGVDOHSURFHHGVIURP1RUWK0DUH,VODQG
7RWDOUHYHQXHVIRUWKH&LW\¶VJRYHUQPHQWDODFWLYLWLHVUHIOHFWHG DQLPSURYLQJHFRQRPLFEDVH%RWKWD[ UHYHQXHVDQGFKDUJHVIRUVHUYLFHVFRQWULEXWHGWRDFRPELQHG PLOOLRQLQFUHDVHLQUHYHQXHVIURP WKHSULRU\HDU
10
7KHSLHFKDUWEHORZLOOXVWUDWHVWKHGLVWULEXWLRQRIWKHJRYHUQP HQWDODFWLYLWLHVUHYHQXHVE\VRXUFH7KH ODUJHVWUHYHQXHVRXUFHIRUJRYHUQPHQWDODFWLYLWLHVLVJUDQWVDQ GFRQWULEXWLRQVDWPLOOLRQ
IROORZHGE\VDOHVWD[
DQGSURSHUW\UHODWHGWD[
7KH &LW\¶VUHOLDQFHXSRQJUDQWDQGWD[
UHYHQXHVLVHYLGHQWIURPWKHFKDUWZKLFKLVFRQVLVWHQWZLWKWK HQDWXUHDQGSXUSRVHRIJRYHUQPHQWDO IXQGVSDUWLFXODUO\LQWKH*HQHUDO)XQGZKHUHSURJUDPVDUHODUJHO\VXSSRUWHGE\JHQHUDOWD[HV
Expenses
2YHUDOOFRVWVRIVHUYLFHVIRUJRYHUQPHQWDODFWLYLWLHVLQFUHDVHG IURPPLOOLRQLQWKHSULRU\HDUWR
PLOOLRQLQWKHFXUUHQWILVFDO\HDU([FHSW&RPPXQLW\6HUYLFHVHYHU\H[SHQVHFDWHJRU\LQFUHDVHG WKLV\HDUSULPDULO\GXHWRWKHLQFUHDVHVLQVDODULHVDQGEHQHILWVWKDWLQFOXGHSHQVLRQDQG23(%H[SHQVHV UHODWHGWRDGMXVWPHQWVUHTXLUHGE\*$6%6WDWHPHQWV1RDQG Net Revenues (Expenses)
3URJUDPUHYHQXHVDVVRFLDWHGZLWK*RYHUQPHQWDO$FWLYLWLHVWRWDOH G PLOOLRQRURISURJUDP
H[SHQVHV
PLOOLRQ
([SHQVHV QRW FRYHUHG E\ SURJUDP UHYHQXHV PXVW EH IXQGHG IURP QRQSURJUDPVRXUFHVOLNHJHQHUDOWD[UHYHQXHV7KHWDEOHRQWKHQH[WSDJHLOOXVWUDWHVWKHJDSEHWZHHQ SURJUDPUHYHQXHVDQGH[SHQVHVE\PDMRUDFWLYLW\3XEOLFVDIHW\SURJUDPVUHO\KHDYLO\RQWD[HVWRVXSSRUW RSHUDWLRQV3XEOLF:RUN¶VSURJUDPUHYHQXHVLQFOXGHFDSLWDOJUDQ WIXQGLQJIRUFDSLWDORXWOD\*HQHUDO JRYHUQPHQWSURJUDPVSURYLGHEHQHILWWRERWKEXVLQHVVW\SHDQGJ RYHUQPHQWDODFWLYLWLHVDQGUHFHLYH VRPHIXQGLQJWKURXJKLQWHUQDOLQGLUHFWFRVWDOORFDWLRQVWRVXSSOHPHQWSURJUDPDQGJHQHUDOWD[UHYHQXHV
*RYHUQPHQWDO$FWLYLWLHV5HYHQXHVE\6RXUFH 0
IRUWKH\HDUHQGHG-XQH
&KDUJHVIRUVHUYLFHV
*UDQWVDQGFRQWULEXWLRQV
3URSHUW\UHODWHGWD[
6DOHVDQGWUDQVDFWLRQWD[
8WLOLW\XVHUVWD[ RWKHUV
,QYHVWPHQWHDUQLQJVDQGRWKHU
11
'HWDLOHGDQDO\VLVRIWKH*HQHUDO)XQGDQGRWKHUPDMRUJRYHUQPHQ WDOIXQGVDUHGLVFXVVHGLQWKH VXEVHTXHQWVHFWLRQV
%XVLQHVVW\SH$FWLYLWLHV
7KHIROORZLQJDQDO\VLVIRFXVHVRQWKHFKDQJHVLQQHWSRVLWLRQRIWKH&LW\¶VEXVLQHVVW\SHDFWLYLWLHVIRUWKH \HDUVHQGHG-XQHDQG
*HQHUDO
JRYHUQPHQW
&RPPXQLW\
GHYHORSPHQW
3ODQQLQJDQG
GHYHORSPHQW
)LUHVHUYLFHV 3ROLFHVHUYLFHV 3XEOLFZRUNV
*RYHUQPHQWDO$FWLYLWLHV 5HYHQXHVDQG([SHQVHV
IRUWKH\HDUHQGHG-XQH
([SHQVHV 5HYHQXHV
%XVLQHVVW\SH$FWLYLWLHV ,QFUHDVH
'HFUHDVH
$PRXQW
5HYHQXHV
3URJUDPUHYHQXHV
&KDUJHVIRUVHUYLFHV
2SHUDWLQJJUDQWVDQGFRQWULEXWLR &DSLWDOJUDQWVDQGFRQWULEXWLRQV
7RWDO3URJUDPUHYHQXHV
*HQHUDOUHYHQXHV
,QYHVWPHQWHDUQLQJVDQGRWKHU
7RWDOUHYHQXHV
([SHQVHV
:DWHU
0DULQD
*ROI
9DOOHMR6WDWLRQ3DUNLQJ
)LEHU2SWLF 7RWDOH[SHQVHV
([FHVVEHIRUHWUDQVIHUV
7UDQVIHUV
&KDQJHLQQHWSRVLWLRQ
1HWSRVLWLRQEHJLQQLQJ
1HWSRVLWLRQHQGLQJ
6WDWHPHQWRI$FWLYLWLHV
IRUWKH
\HDUVHQGHG-XQHDQG
,QPLOOLRQV
12
%XVLQHVVW\SHDFWLYLWLHVLQFUHDVHGWKH&LW\¶VQHWSRVLWLRQE\PLOOLRQRU WR
PLOOLRQ
&KDUJHVIRUVHUYLFHVZHUHXSE\
PLOOLRQRUSULPDULO\LQ:DWHU)XQG:DWHUFKDUJHVIRUVHUYLFHV LQFUHDVHGPLOOLRQIURPSULRU\HDUDVVRFLDWHGZLWKWKHDGGL WLRQDOUDWHLQFUHDVHWKDWWRRNHIIHFW -XO\
&DSLWDOJUDQWVDQGFRQWULEXWLRQVZHUHXSE\PLOOLRQGULYHQE\WKHLQFUHDVHGFRPPHUFLDOGHYHORSPHQW DFWLYLWLHVGXULQJWKH\HDU
,QYHVWPHQWHDUQLQJVRIPLOOLRQWKLVFXUUHQWILVFDO\HDUZDVFRXQWHUEDODQFHGE\WKHPLOOLRQORVV LQFXUUHGRQWKHVDOHRI*ROIFRXUVHSURSHUWLHV
2YHUDOOH[SHQVHVRIPLOOLRQLQFUHDVHGIURPWKHSUHYLRXV\ HDUE\PLOOLRQPDLQO\LQ:DWHUDQG 0DULQD)XQGV7KHLQFUHDVHLQ:DWHUZDVPDLQO\IURPVDODULHVDQ GEHQHILWVWKDWLQFOXGHSHQVLRQDQG 23(%H[SHQVHVDVUHTXLUHGE\*$6%DQGDQGFRPPRGLW\SXUFK DVHV7KHRSHUDWLQJFRVWVRI 9DOOHMR0XQLFLSDO0DULQDLQFUHDVHGE\PLOOLRQGXHWRWKHSULRU\HDUPLOOLRQHOLPLQDWLRQRISHQVLRQ DQG23(%OLDELOLWLHVDQGUHODWHGDFFRXQWV
7KHWDEOHEHORZSURYLGHVDYLVXDOUHSUHVHQWDWLRQRIWKHQHWSUR JUDPFRVWLQIRUPDWLRQIRUEXVLQHVVW\SH DFWLYLWLHVIRUWKH\HDUHQGHG-XQH,QWKHVHSURJUDPVDQQXDOVXUSOXVHVRUGHILFLWVDUHUHWDLQHG LQWKHSURJUDPVDVDQLQFUHDVHRUGHFUHDVHLQWKHSURJUDP¶VQHWSRVLWLRQ
,QWRWDOWKHSURJUDPUHYHQXHVIRUWKHVHEXVLQHVVW\SHRSHUDWLR QVZHUHJHQHUDOO\LQWHQGHGWRFRYHU RSHUDWLQJGHEWVHUYLFHDQGFDSLWDOUHLQYHVWPHQWUHTXLUHPHQWV)RUWKHFXUUHQW\HDU:DWHURSHUDWLRQV FRQWULEXWHG
PLOOLRQ7KHRWKHUEXVLQHVVW\SHDFWLYLWLHVIX QGVFRPELQHGORVVZDVPLOOLRQ $OWKRXJKHDFKRIWKHVHSURJUDPVFROOHFWHGXVHUIHHVWKHIHHVR I0DULQDDQG)LEHUIXQGVGLGQRWIXOO\ FRYHUWKHLUDQQXDOFRVWV7KH*HQHUDO)XQGDQG)OHHWWUDQVIHUU HGDFRPELQHGPLOOLRQWRFRYHU 0DULQD)XQG¶VGHEWVHUYLFHSD\PHQWVDQGYHKLFOHSXUFKDVH
'HWDLOHGDQDO\VLVRIHDFKRIWKHEXVLQHVVW\SHRSHUDWLRQVDUHGLVFXVVHGLQWKH(QWHUSULVH)XQGVVHFWLRQ 1HW5HYHQXH
([SHQV H
RI%XV LQHV V W\SH$FWLYLWLHV
$V RI-XQH
LQPLOOLRQV
1HW5HYHQXH
3URJUDP
([SHQV H
([SHQV HV 5HYHQXHV RI$FWLYLWLHV
:DWHU
0DULQD
*ROI
9DOOHMR6WDWLRQ3DUNLQJ
)LEHU2SWLF
13
),1$1&,$/$1$/<6,62)7+(&,7<¶6)81'6
,QDGGLWLRQWRWKHIXOODFFUXDOEDVLVJRYHUQPHQWZLGHVWDWHPHQWVGHVFULEHGDERYHWKH&LW\DOVRPDLQWDLQV ILQDQFLDOUHFRUGVDWWKHIXQGOHYHOIRUEXGJHWDU\FRQWURO,QG LYLGXDOIXQGVDUHJHQHUDOO\HVWDEOLVKHGWR WUDFNWKHUHVRXUFHVDQGRSHUDWLQJUHVXOWVIRUVSHFLILFUHVWULFWHGSURJUDPV7KHUHVXOWVIRUJRYHUQPHQWDO IXQGVEHORZGLIIHUIURPWKHUHVXOWVUHSRUWHGDERYHLQWKHJRYHUQPHQWZLGHVWDWHPHQWV+HUHWKHIRFXV LVWRSURYLGHLQIRUPDWLRQRQQHDUWHUPLQIORZVRXWIORZVDQGEDODQFHVRIVSHQGDEOHUHVRXUFHVZKLFKFDQ EHXVHIXOLQDVVHVVLQJWKH&LW\¶VILQDQFLQJUHTXLUHPHQWV6SHFLILFDOO\XQDVVLJQHGIXQGEDODQFHFDQVHUYH DVDQLQIRUPDWLYHPHDVXUHRIDJRYHUQPHQW¶VQHWUHVRXUFHVDYDLODEOHIRUGLVFUHWLRQDU\XVHDWWKHHQGRI WKHILVFDO\HDU
$VRI-XQHWKH&LW\¶V*RYHUQPHQWDO)XQGVUHSRUWHGDF RPELQHGHQGLQJIXQGEDODQFHVRI PLOOLRQDPLOOLRQLQFUHDVHLQFRPSDULVRQZLWKWKH SULRU\HDU¶VWRWDOHQGLQJIXQGEDODQFHV 7KHFKDUWVKRZLQJWKHFRPSRQHQWVRI&LW\¶VJRYHUQPHQWDOWRWDOIXQGEDODQFHDUHSUHVHQWHGEHORZ
x 1RQVSHQGDEOH)XQG%DODQFHRIPLOOLRQLVFRQVLVWHQWZLWKS ULRU\HDU7KHVHDPRXQWVDUHQRW VSHQGDEOHLQIRUPRUDUHOHJDOO\RUFRQWUDFWXDOO\UHTXLUHGWR EHPDLQWDLQHGLQWDFWDQGDUHPDGHXS RIORQJǦWHUPUHFHLYDEOHVDQGSUHSDLGH[SHQVHVDQGGHSRVLWV
x 5HVWULFWHG)XQG%DODQFHLQFUHDVHGE\
PLOOLRQWRP LOOLRQ7KLVFRQVLVWVRIDPRXQWVZLWK FRQVWUDLQWV SXW RQ WKHLU XVH E\ FUHGLWRUV JUDQWRUV FRQWULEXWRUV ODZV UHJXODWLRQV RU HQDEOLQJ OHJLVODWLRQ
x &RPPLWWHG)XQG%DODQFHGHFUHDVHGE\PLOOLRQWR
PLOO LRQ7KLVLQFOXGHVDPRXQWVIRU
VSHFLILFSXUSRVHVGHWHUPLQHGE\WKH&LW\&RXQFLOZKLFKDUHELQGLQJXQOHVVUHPRYHGE\WKH&RXQFLO LQWKHVDPHPDQQHU
x $VVLJQHG)XQG%DODQFHLQFUHDVHGE\PLOOLRQWR PLOOLRQ7KH&LW\LQWHQGVIRUWKHVHDPRXQWV
WREHXVHGIRUDVSHFLILFSXUSRVHEXWWKH\DUHQHLWKHUUHVWULFWHGQRUFRPPLWWHG
x 8QDVVLJQHG)XQG%DODQFHLQFUHDVHGE\PLOOLRQWR PLO OLRQ7KLVUHSUHVHQWVWKHUHVLGXDO
EDODQFHRIWKH&LW\¶V*HQHUDO)XQG
*RYHUQPHQWDO)XQGV )XQG%DODQFH
LQPLOOLRQV
14
)RUPRUHLQIRUPDWLRQRQJRYHUQPHQWDOIXQGEDODQFHVSOHDVHUHIH UWR1RWHRIWKH%DVLF)LQDQFLDO 6WDWHPHQWV
3UHVHQWHGEHORZDQGRQWKHQH[WSDJHVDUHWKHPDMRUIXQGVWKDW HLWKHUTXDOLILHGXQGHUWKHUHSRUWLQJ FULWHULDRUDUHFRQVLGHUHGWREHLPSRUWDQWWRILQDQFLDOVWDWHPHQWXVHUV
*(1(5$/)81'
7KH&LW\¶V*HQHUDO)XQGSURYLGHVSROLFHILUHFRPPXQLW\GHYHORSPHQWSXEOLFZRUNVDQGDGPLQLVWUDWLYH VHUYLFHVWRWKH&LW\¶VUHVLGHQWVRWKHUIXQGVEXVLQHVV HVDQGYLVLWRUV7KH*HQHUDO)XQGLV GLVWLQFWIURPRWKHUIXQGVEHFDXVHLWLVWKHRQO\VRXUFHRIXQUHVWULFWHGIXQGVWKDWFDQEHDOORFDWHGDWWKH GLVFUHWLRQRIWKH&LW\&RXQFLOIRUDQ\PXQLFLSDOSXUSRVH)RUILQDQFLDOUHSRUWLQJSXUSRVHVWKHVFRSHRI *HQHUDO)XQGEDODQFHVDQGDFWLYLWLHVLQFOXGHVWKH&LW\¶V0HDVXUH%9DQG&RQWLQJHQF\5HVHUYH)XQGV DVZHOODV0HDVXUH3YRWHUDSSURYHGWD[
'XULQJILVFDO\HDUWKH*HQHUDO)XQGH[SHQGHG
PLOOLRQLQODERUFRVWVWRSURYLGHWKHVHVHUYLFHV
IXQGLQJDXWKRUL]HGIXOOWLPHHTXLYDOHQWSRVLWLRQV/DERUF RVWVFRPSULVHGRI*HQHUDO)XQG¶V WRWDOH[SHQGLWXUHVDQGWUDQVIHUVRXW
Budgetary Highlights – 'XULQJWKHILVFDO\HDUDGMXVWPHQWVZHUHPDGHEHWZHHQWK HRULJLQDO EXGJHWDQGWKHILQDOEXGJHWUHVXOWLQJLQDPLOOLRQLQFUHD VHLQEXGJHWHGUHYHQXHVDQGWUDQVIHUVLQ 7KLVDXJPHQWDWLRQZDVSULPDULO\GULYHQE\WKHDQWLFLSDWHGHIIHF WVRIWKHQHZ0HDVXUH3VDOHVWD[ FRQWULEXWLQJPLOOLRQDQGWKHSURFHHGVIURPWKHVDOHRI1RUWK0DUH,VODQGDPRXQWLQJWRPLOOLRQ &RQYHUVHO\WKHUHZDVDVLJQLILFDQWPLOOLRQLQFUHDVHLQE XGJHWHGH[SHQGLWXUHVDQGWUDQVIHUVRXW 7KH PDMRULW\ RI WKHVHDGMXVWPHQWV WRWDOLQJ
PLOOLRQ ZHUH DOORFDWHG IRU $53$ SURMHFWV 7KH UHPDLQLQJEDODQFHZDVDSSURSULDWHGIRUYDULRXVSXUSRVHVLQFOX GLQJWKHIXOOSD\PHQWRIWKH+8' ORDQDQDGGLWLRQDOFRQWULEXWLRQWRSHQVLRQXQIXQGHGOLDELOLW\DQGVXSSRUWIRUFLW\SURJUDPV
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
Current Year Increase in General Fund Revenues/Expenditures – 7KH*HQHUDO)XQGUHYHQXHV LQFOXGLQJRWKHUILQDQFLQJVRXUFHVLPSURYHGVXEVWDQWLDOO\E\ PLOOLRQRUIURPWKHSULRUILVFDO \HDUWRPLOOLRQ7KLVERRVWFDQEHDWWULEXWHGWRVHYHUDO NH\IDFWRUVVXFKDVLQFUHDVHVLQUHDOL]HG $53$JUDQWUHYHQXHV
PLOOLRQ
SURSHUW\WD[IURPWKHUREXVWUHDOHVWDWHHFRQRP\
PLOOLRQ
DQG
VDOHVWD[GXHWRWKHQHZPHDVXUH3WD[
PLOOLRQ
7KHFLW \¶VUHYHQXHVZHUHIXUWKHUDXJPHQWHGE\
RQHWLPHLQIORZVLQFOXGLQJWKH0RQVDQWRVHWWOHPHQWRI
PLO OLRQ
DQGSURFHHGVIURPWKHVDOHRI
1RUWK0DUH,VODQG
PLOOLRQ
*HQHUDO)XQGH[SHQGLWXUHVH[FOXGLQJWUDQVIHUVWRWDOHGWR PLOOLRQIRU)<FRPSDUHGWR
PLOOLRQLQWKHSULRUILVFDO\HDU7KHLQFUHDVHZDVPLOOLRQRU 7KLVXSWLFNZDVDWWULEXWHG
WRWKHVXUJHLQVHUYLFHDQGVXSSOLHV
PLOOLRQ
DQGVDODULHVDQGEHQHILWV
PLOOLRQ
7UDQVIHUVRXW
DOORFDWHGIRUFDSLWDOSURMHFWVGHEWVHUYLFHDQGFLW\RSHUDWLRQVVDZDGHFUHDVHRIPLOOLRQGURSSLQJ IURPPLOOLRQLQWKHSULRU\HDUWRPLOOLRQLQWKHFXUUHQWILVFDO\HDU7KLVUHGXFWLRQZDVSULPDULO\ GXHWRDPLOOLRQDGGLWLRQDOFRQWULEXWLRQPDGHLQWKHSULRU \HDUWRZDUGVWKH&LW\ V*HQHUDOOLDELOLW\
SURJUDP
15
Fund balance±7KH*HQHUDOIXQGDWWKHFORVHRIWKHILVFDO\HDUHQGHGZLW KDVXUSOXVDVWRWDO UHYHQXHVDQGRWKHUILQDQFLQJVRXUFHVVRDUHGWRPLOOLRQ VXUSDVVLQJWKHWRWDOH[SHQGLWXUHVDQG RWKHUILQDQFLQJXVHVRIPLOOLRQE\DVXEVWDQWLDOPDUJLQ RIPLOOLRQ7KLVSRVLWLYHILQDQFLDO RXWFRPHKDGVLJQLILFDQWO\EROVWHUHGWKH*HQHUDO)XQG
VWRWDOIXQGEDODQFHFXOPLQDWLQJLQDQLPSUHVVLYH
PLOOLRQ2IWKLVDPRXQWWKHXQDVVLJQHGIXQGEDODQFHVWDQGVDWPLOOLRQUHSUHVHQWLQJ RI
WKHVXEVHTXHQW\HDU
V*HQHUDO)XQGDQQXDORSHUDWLQJEXGJHWLQFOXVLYHRI0HDVXUH%SURJUDPV
7KH FKDUW EHORZ LOOXVWUDWHV WKH FKDQJHV LQ WKH FRPSRQHQWV RI WKH *HQHUDO )XQG EDODQFH IURP -XQHWR-XQH
27+(50$-25*29(5101(17$/)81'6
Housing Authority Fund –7KH)XQGUHFHLYHGPLOOLRQLQIHGHUDO+8'JUDQWDOORFDWLRQ VDQGRWKHU UHYHQXHVGXULQJWKH\HDUWRVXSSRUWLWVPLOOLRQ6HFWLRQ +RXVLQJ$VVLVWDQFH9RXFKHU3URJUDP H[SHQGLWXUHV$VRI-XQHWKH+RXVLQJ$XWKRULW\)XQG UHSRUWHGDFRPELQHGIXQGEDODQFHRI PLOOLRQFRQVLVWHQWZLWKSULRUILVFDO\HDU2IWKHWRWDO IXQGEDODQFHPLOOLRQLVUHVWULFWHGDQG FRPPLWWHG0RVWRIWKHVHIXQGVDUHLQYHVWHGLQORQJWHUPORDQV DQGPRUWJDJHVDQGDUHQRWDQWLFLSDWHG WREHFROOHFWHGZLWKLQWKHQH[W\HDU
Mare Island Conversion Fund ±$VRI-XQHWKLVIXQGKHOGPLOOLRQRIUHVWULFW HGIHGHUDO IXQGVWRSD\IRUWKHHQYLURQPHQWDOUHPHGLDWLRQRIWKHIRUPHU0D UH,VODQG1DYDOEDVHPLOOLRQZDV H[SHQGHGGXULQJWKH\HDURQWKLVHIIRUW7KHIXQGDOVRUHFHLYHGDQDGGLWLRQDOJUDQWIURPWKH1DY\LQWKH DPRXQWRIPLOOLRQGXULQJWKH\HDU
(17(535,6()81'6
7KH&LW\¶VHQWHUSULVHIXQGVWDWHPHQWVSURYLGHWKHVDPHLQIRUPDW LRQIRXQGLQWKHJRYHUQPHQWZLGH ILQDQFLDOVWDWHPHQWVEXWLQPRUHGHWDLO
*HQHUDO)XQG )XQG%DODQFH
LQPLOOLRQV
16
$VRI-XQHWRWDOHQWHUSULVHIXQGV¶QHWSRVLWLRQLQFUHDVHGWR PLOOLRQXSPLOOLRQIURP
PLOOLRQLQWKHSULRU\HDU7KHVLJQLILFDQWFKDQJHVE\HQWHUSULVHIXQGDUHGLVFXVVHGEHORZ
Water – 7RWDOQHWSRVLWLRQRIWKH:DWHU)XQGRQ-XQHZDVXS PLOOLRQIURPWKHSUHYLRXV \HDUWRPLOOLRQ7KHLQFUHDVHZDVPDLQO\GXHWRWKHLPSUR YHGLQYHVWPHQWHDUQLQJVDQGFDSLWDO FRQWULEXWLRQVIURPGHYHORSHUV7KHUDWHVWUXFWXUHVDGRSWHGLQ -XQHDQG2FWREHU FRQWLQXHG
WRSURYLGHIRUXVHUIHHLQFUHDVHVGXULQJWKH\HDUWRKHOSJHQHU DWHVXIILFLHQWUHYHQXHVWRRSHUDWHDQG PDLQWDLQWKH9DOOHMR0XQLFLSDO:DWHU6\VWHP
Marina – 7RWDOQHWSRVLWLRQRIWKH0DULQD)XQGRQ-XQHLQFUHDVH GE\PLOOLRQIURPWKH SUHYLRXV\HDU7KHIXQGUHFHLYHG
PLOOLRQ
WUDQVIHUIURP* HQHUDO)XQGWRFRYHUWKHDQQXDOGHEW
VHUYLFHSD\PHQWV7KHDQQXDO&3,LQFUHDVHVIRUEHUWKUHQWVD QGOLYHDERDUGIHHVDUHSURMHFWHGWR VWHDGLO\ LPSURYH WKH QHW SRVLWLRQ RYHU WKH QH[W VHYHUDO \HDUV7KH &LW\ KDG DOVR HQWHUHG LQWR D PDQDJHPHQWDJUHHPHQWZLWK)WRLPSURYHERWKILQDQFLDORSHUDWLR QVDQGFXVWRPHUVHUYLFHRIWKH 9DOOHMR0XQLFLSDO0DULQD
Golf±7KHWRWDOQHWSRVLWLRQRIWKH*ROI)XQGVRDUHGWRPLOOLRQIURPQHJDWLYHPLOOLRQODVW\HDU 7KHLQFUHDVHZDVUHODWHGWRWKHQHWWUDQVIHURIJROIFRXUVHSUR SHUWLHVIURP*HQHUDOIXQG7KH&LW\LV VHHLQJSRVLWLYHUHVXOWVIURPKLULQJ7RXFKVWRQH*ROILQWR PDQDJHWKHJROIRSHUDWLRQV'XULQJWKH FXUUHQWILVFDO\HDUWKH%OXH5RFN6SULQJVJROIFRXUVHVJHQHUDW HGPLOOLRQLQXVHUIHHVZKLFKZHUH XVHGWRFRYHULWVSURJUDPFRVWVDQGKHOSFXUHWKHIXQG¶VQHJDWLYHEHJLQQLQJEDODQFHQHWSRVLWLRQ$OVR WKH&LW\KDGHQWHUHGLQWRDQ(1$
([FOXVLYH1HJRWLDWLQJ$JUHHPH QW
ZLWK*UHJ1RUPDQ&RPSDQ\DQG
WKH/HZLV*URXSIRUWKHIXWXUHUHYLWDOL]DWLRQDQGUHGHYHORSPHQWRIWKH%OXH5RFN6SULQJVJROIFRXUVHV
Vallejo Station Parking±7KH9DOOHMR6WDWLRQ3DUNLQJ)XQG¶VUHYHQXHVKDGVORZO\UHFRY HUHGIURPWKH SDQGHPLFHIIHFWV7KHIXQGLPSURYHGLWVSDUNLQJUHYHQXHVE\ PLOOLRQDVFRPPXWHUWUDIILFUHWXUQHG WRWKH9DOOHMR:DWHUIURQW7KHIXQGDOVRUHFHLYHGPLOOLRQLQ$53$IXQGLQJGXULQJWKH\HDUWRPLWLJDWH WKHSULRU\HDUQHJDWLYHHFRQRPLFLPSDFWVRI&29,'
SDQGHPLFRQSDUNLQJRSHUDWLRQV
Fiber Optic±,Q0D\LQDQHIIRUWWROHYHUDJH&LW\DVVHWVDQGSURPRWHHFRQRPLFGHYHORSPHQWWKH )LEHU2SWLF)XQGZDVHVWDEOLVKHGZLWKDPLOOLRQLQWHUIXQG ORDQIURPWKH*HQHUDO)XQGIRUZRUNLQJ FDSLWDO:LWKWKHLQIXVLRQRI$53$IXQGLQJWKHFLW\ZLOOH[SDQ GDQGFUHDWHDUREXVWEURDGEDQGWKDWFDQ VHUYH9DOOHMR,Q1RYHPEHUWKHFLW\FRQWUDFWHG6PDUW)LEHU1HWZRUNVWRRSHUDWHDQGPDLQWDLQWKH &LW\¶VILEHUQHWZRUNVDQGVHUYLFHUHWDLODQGUHVLGHQWLDOFXVWRP HUVZLWKLQWKH&LW\IRUDUHYHQXH VKDULQJDUUDQJHPHQWVWDUWLQJILVFDO\HDU7KHIXQGKDGUHGXFHGLWVGHILFLWE\GXULQJWKLVILVFDO \HDU
1HW3RV LWLRQE\)XQG
LQPLOOLRQV
,QFUHDV H
'HFUHDVH
:DWHU
0DULQD
*ROI
9DOOHMR3DUNLQJ )LEHU
7RWDO
17
&$3,7$/$66(76
*$6% 6WDWHPHQW1R UHTXLUHVWKDWWKH&LW\UHFRUGDOOLWVFDS LWDODVVHWVWKDWDUHXVHGLQWKH SHUIRUPDQFHRIWKH&LW\¶VIXQFWLRQVLQFOXGLQJLQIUDVWUXFWXUHDVVHWV7KHIROORZLQJLVDVXPPDU\RIWKHVH DVVHWVDVRI-XQHDQG
7KURXJKRXWWKHILVFDO\HDUWKH&LW\¶VFDSLWDODVVHWVH[SHULHQF HGQRWDEOHFKDQJHVZLWKPDMRUDGGLWLRQV LQ JRYHUQPHQWDO FDSLWDO DVVHWV DWWULEXWHG WR FRQVWUXFWLRQ LQ SURJUHVV UHODWHG WR LQIUDVWUXFWXUH HQKDQFHPHQWV
PLOOLRQ
DQGGHYHORSHUFRQWULEXWLRQRI:DWHUVWRQHVXEGLYLVLRQLPSURYHPHQWVWRWKH FLW\
PLOOLRQ
+RZHYHUWKHVHLQFUHDVHVZHUHRIIVHWE\WKHDQQXDOGHSUHFLDWLRQ PLOOLRQ
VDOH
RI1RUWK0DUH,VODQGSURSHUW\
PLOOLRQ
DQGWUDQVIHURI %OXH5RFN*ROI&RXUVHSURSHUWLHV
PLOOLRQ
WRWKH*ROI&RXUVH(QWHUSULVH)XQG7KHFRPSOHW LRQRIWKH6DFUDPHQWR6WUHHW%ULGJH ,QIUDVWUXFWXUHSURMHFWGXULQJWKHILVFDO\HDUPDUNHGDVLJQLILF DQWDFKLHYHPHQWIRUWKH&LW\DGGLQJWRWKH VSHFWUXPRIFDSLWDOLPSURYHPHQWVXQGHUWDNHQ
%XVLQHVVW\SHFDSLWDODVVHWPDMRUDGGLWLRQVLQFOXGHWUDQVIHURI %OXH5RFN*ROI&RXUVHSURSHUWLHV
PLOOLRQ
IURPJRYHUQPHQWDOIXQGVDQGFRQVWUXFWLRQLQSURJUH VV PLOOLRQ
UHODWHGWRZDWHU
HTXLSPHQWDQGLQIUDVWUXFWXUHLPSURYHPHQWV7KHVHZHUHRIIVHWE\WKHDQQXDOGHSUHFLDWLRQ PLOOLRQ
DQGVDOHRI%OXH5RFN*ROI&RXUVHSURSHUWLHV
PLOOLRQ
2YHUDOOWKH&LW\¶VFDSLWDODVVHWVQHWRIGHSUHFLDWLRQGHFUHDVH GE\PLOOLRQGXULQJWKH\HDUWR PLOOLRQRQ-XQHPDLQO\GXHWRGHSUHFLDWLRQDQGVDOHRI1RUWK0DUH,VODQGSDUFHOV)XUWKHU GHWDLODERXWWKH&LW\¶VFDSLWDODVVHWVFDQEHIRXQGLQ1RWHWRWKH)LQDQFLDO6WDWHPHQWV &DSLWDO$V V HWV
QHWRIGHSUHFLDWLRQ
LQPLOOLRQV
*RYHUQPHQWDODFWLYLWLHV %XV LQHV V W\SHDFWLYLWLHV 7RWDO ,QFUHDV H
'HFUHDVH
/DQG
%XLOGLQJDQGLPSURYHPHQW
0DFKLQHU\DQGHTXLSPHQW
,QIUDVWUXFWXUH
&RQVWUXFWLRQLQSURJUHVV
6XEVFULSWLRQLQSURJUHVV /HDVHDVVHWV 6XEVFULSWLRQDVVHWV 7RWDO
18
'(%7$'0,1,675$7,21
7KHIROORZLQJLVDVXPPDU\RIWKH&LW\¶VORQJWHUPGHEWREOLJDWLRQVDVRI-XQHDQG
Annual Activity ± 7KH &LW\¶V WRWDO ORQJWHUP GHEW REOLJDWLRQV GHFUHDVHG E\ PLOOLRQ DV RI -XQH7KHGHFUHDVHZDVGXHWRWKH
PLOOLRQUHTXLU HGGHEWVHUYLFHSD\PHQWVRIIVHWE\WKH &LW\¶VQHZORDQDJUHHPHQWZLWK%DQNRI$PHULFDDPRXQWLQJWR PLOOLRQ7KLVILQDQFLDODUUDQJHPHQW LVHDUPDUNHGWRIDFLOLWDWHWKHDFTXLVLWLRQRIIOHHWYHKLFOHVUHIOHFWLQJWKH&LW\ VFRPPLWPHQWWRPDLQWDLQLQJ
DQGLPSURYLQJLWVHVVHQWLDOLQIUDVWUXFWXUH&RPSUHKHQVLYHGHWDLOVUHJDUGLQJHDFKRIWKH&LW\ VGHEWLVVXHV
LQFOXGLQJVSHFLILFVRQWHUPVDQGFRQGLWLRQVFDQEHIRXQGLQ1RWHVDQGWRWKH)LQDQFLDO6WDWHPHQWV Bond Rating±2Q- XQH6WDQGDUG 3RRU¶VUDLVHGLWVUDWLQJIURPµ%%%¶ WR³$³IRUWKH
&HUWLILFDWHVRI3DUWLFLSDWLRQ7KH&LW\DOVRPDLQWDLQVD6WDQGDUG 3RRU¶Vµ$$¶UDWLQJIRUWKH6HULHV RI$:DWHU5HYHQXH5HIXQGLQJ%RQGVZLWKDVWDEOHRXWORRN7KHFUHGLWUHSRUWKLJKOLJKWHGWKH&LW\¶V VWURQJILQDQFLDOSRVLWLRQGXULQJWKHSDVWILYHILVFDO\HDUVDQ GWKHZDWHUV\VWHP¶VYHU\VWURQJHQWHUSULVH DQGILQDQFLDOSURILOHVUHVSHFWLYHO\
Net Debt7KHSHUFHQWDJHRIQHWERQGHGGHEWWRWD[DEOHSURSHUW\YDOXDWLRQDQGWKHDPRXQWRIERQGHG GHEWSHUFDSLWDDUHXVHIXOLQGLFDWRUVRIWKH&LW\¶VQHWGHEWS RVLWLRQWRPDQDJHPHQWFLWL]HQVDQG LQYHVWRUV$FRPSDULVRQRIWKHVHLQGLFDWRUVIROORZV3HUFDSLW DGHEWRXWVWDQGLQJGHFUHDVHGWR DV
RI-XQHIURP
LQWKHSULRUILVFDO\HDU
2XWVWDQGLQJ'HEW
/RQJ7HUP'HEW
LQPLOOLRQV
*RYHUQPHQWDODFWLYLWLHV %XVLQHVVW\SHDFWLYLWLHV 7RWDO ,QFUHDVH
'HFUHDVH
&HUWLILFDWHVRI3DUWLFLSDWLRQ
)LQDQFHG3XUFKDVHV
5HYHQXH%RQGV
/HDVH3D\DEOHV
/RDQV 1RWHV3D\DEOH
7RWDO
-XQH -XQH
1HWGHEW
LQPLOOLRQV
1HWGHEWSHUFDSLWD
1HWGHEWSHUFDSLWDDVDSHUFHQWDJH
RISHUFDSLWDSHUVRQDOLQFRPH
1HWGHEWDVDSHUFHQWDJHRI
QHWDVVHVVHGYDOXH
19
(&2120,&)$&7256$1'1(;7<($5¶6%8'*(7
Economic Factors
7KHHFRQRP\DQGWKH&LW\¶VPDMRULQLWLDWLYHVIRUQH[W\HDUDUH GLVFXVVHGLQGHWDLOLQWKHDFFRPSDQ\LQJ 7UDQVPLWWDO/HWWHU
Next Year’s Budget
7RWDOUHYHQXHDFURVVDOOIXQGVLVEXGJHWHGIRUILVFDO\HDU DW PLOOLRQ7KH*HQHUDO)XQGD
NH\FRPSRQHQWRIWKLVILQDQFLDOSODQLVSURMHFWHGWRFRQWULEXWHPLOOLRQWRWKLVWRWDO7KHFDXWLRXVO\ RSWLPLVWLFEXGJHWUHIOHFWVWKH&LW\
VFRQILGHQFHLQDVWHDGLO\ LPSURYLQJWD[EDVHDQGRQJRLQJHFRQRPLF GHYHORSPHQWLQLWLDWLYHV7KHDQWLFLSDWLRQRIPRGHUDWHJURZWKLQWKHFRPLQJ\HDULVIXHOHGE\WKHVHSRVLWLYH WUHQGVVLJQDOLQJDUHVLOLHQWORFDOHFRQRP\)XUWKHUPRUHWKH& LW\ VSURDFWLYHDSSURDFKLQFOXGHVWKH
SXUVXLWRIIHGHUDODQGVWDWHJUDQWVGHPRQVWUDWLQJDFRPPLWPHQW WRGLYHUVLI\LQJUHYHQXHVWUHDPVDQG OHYHUDJLQJH[WHUQDOIXQGLQJVRXUFHVWRVXSSRUWNH\SURMHFWVDQGLQLWLDWLYHV
7KH&LW\¶VWRWDOH[SHQGLWXUHEXGJHWIRUQH[W\HDULVPLOOLRQZLWKDQRWDEOHSRUWLRQRIPLOOLRQ HDUPDUNHGIRUWKH*HQHUDO)XQG7KLVILQDQFLDOFRPPLWPHQWXQGHUVFRUHVWKH&LW\ VGHGLFDWLRQWRIRVWHULQJ
HFRQRPLF GHYHORSPHQW VXSSRUWLQJ ORFDO EXVLQHVVHV DQG XSKROGLQJ LWV FRPPLWPHQW WR DIIRUGDEOH KRXVLQJLQLWLDWLYHV,PSRUWDQWO\WKH*HQHUDO)XQGUHYHQXHEXGJHWVHWDWPLOOLRQDOLJQVZLWKDQG IXOO\ FRYHUV WKHVH H[SHQGLWXUHV HOLPLQDWLQJ DQ\ SURMHFWHG VKRUWIDOOV 'HPRQVWUDWLQJ SUXGHQW ILVFDO SODQQLQJWKH&LW\DLPVWRPDLQWDLQ*HQHUDO)XQGUHVHUYHVDWD PLQLPXPRIRI*HQHUDO)XQG H[SHQGLWXUHVDFWLQJDVDVDIHJXDUGDJDLQVWSRWHQWLDOHFRQRPLF GRZQWXUQV7KLVFDXWLRXVDSSURDFK UHIOHFWVWKH&LW\
VGHGLFDWLRQWRVXVWDLQLQJDEDODQFHGEXGJHWDQGPLQLPL]LQJULVNVDVLWUHPDLQVYLJLODQW LQPRQLWRULQJHFRQRPLFLQGLFDWRUVUHYHQXHVRXUFHVDQGVSHQGLQ JSDWWHUQVDVSDUWRILWVRYHUDOOVRXQG DQGFRQVHUYDWLYHILVFDOVWUDWHJ\
&217$&7,1*7+(&,7<¶6),1$1&,$/0$1$*(0(17
7KLV$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW
$&)5
LVGHVLJQHGW RSURYLGHRXUFLWL]HQVWD[SD\HUV
FXVWRPHUVDQGLQYHVWRUVDQGFUHGLWRUVZLWKDJHQHUDORYHUYLHZ RIWKH&LW\¶VILQDQFHVDQGWRVKRZWKH &LW\¶VDFFRXQWDELOLW\IRUWKHPRQH\LWUHFHLYHV)RUWKHFRQYHQLHQFHRIWKHSXEOLFDFRS\RIWKLVUHSRUWLV SRVWHGRQWKH&LW\¶VZHEVLWH
KWWSV
ZZZFLW\RIYDOOHMRQHWRXUBFLW\GHSDUWPHQWVBGLYLVLRQVILQDQFHBGHSDUWPHQW
,I\RXKDYHTXHVWLRQVDERXWWKLVUHSRUWVHSDUDWHUHSRUWVRIWK H&LW\¶VFRPSRQHQWXQLWVRUQHHGDQ\ DGGLWLRQDOILQDQFLDOLQIRUPDWLRQFRQWDFWWKH)LQDQFH'HSDUWPHQ WDW6DQWD&ODUD6WUHHW9DOOHMR &DOLIRUQLD
SKRQH
20 &,7<2)9$//(-2
6WDWHPHQWRI1HW3RVLWLRQ
&RPSRQHQW
8QLW
9DOOHMR)ORRGDQG
*RYHUQPHQWDO %XVLQHVV7\SH :DVWHZDWHU
$FWLYLWLHV $FWLYLWLHV 7RWDO 'LVWULFW
$VVHWV
&DVKDQGLQYHVWPHQWV
1RWH
5HFHLYDEOHV
$FFRXQWV
1RWHVDQGORDQV
1RWH
,QWHUHVWUHFHLYDEOH /HDVH5HFHLYDEOH
1RWHD
,QWHUQDOEDODQFHV
1RWHEDQG1RWHF
3UHSDLGVDQGGHSRVLWV
1RWHK
'XHIURPRWKHUJRYHUQPHQWV
0DWHULDOVSDUWVDQGVXSSOLHV
1RWHI
/DQGKHOGIRUUHGHYHORSPHQW
1RWHJ
5HVWULFWHGDVVHWV
&DVKDQGLQYHVWPHQWV
1RWH
&DVKZLWKILVFDODJHQW
1RWH
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHG
1RWH
&DSLWDODVVHWVQHWRIGHSUHFLDWLRQDPRUWL]DWLRQ
1RWH
7RWDO$VVHWV
'HIHUUHG2XWIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV
1RWH
5HODWHGWR23(%
1RWH
'HIHUUHGFKDUJHRQUHIXQGLQJ
1RWH
7RWDO'HIHUUHG2XWIORZV
RI5HVRXUFHV
/LDELOLWLHV
$FFRXQWVSD\DEOHDQGDFFUXHGOLDELOLWLHV
$FFUXHGLQWHUHVW
8QHDUQHGUHYHQXH 'HSRVLWVSD\DEOH
'XHWRRWKHUJRYHUQPHQWV
(PSOR\HHEHQHILWVSD\DEOHGXHZLWKLQRQH\HDU
1RWH
&ODLPVGXHZLWKLQRQH\HDU
1RWH
/RQJWHUPGHEWGXHZLWKLQRQH\HDU
1RWH
/HDVHSD\DEOHGXHZLWKLQRQH\HDU
1RWHE
6XEVFULSWLRQSD\DEOHGXHZLWKLQRQH\HDU
1RWHF
2WKHUOLDELOLWLHVGXHZLWKLQRQH\HDU
1RQFXUUHQWOLDELOLWLHV
(PSOR\HHEHQHILWVSD\DEOHGXHLQPRUHWKDQRQH\HDU 1RWH
&ODLPVGXHLQPRUHWKDQRQH\HDU
1RWH
/RQJWHUPGHEWGXHLQPRUHWKDQRQH\HDU
1RWH
/HDVHSD\DEOHGXHLQPRUHWKDQRQH\HDU
1RWHE
6XEVFULSWLRQSD\DEOHGXHLQPRUHWKDQRQH\HDU
1RWHF
1HWSHQVLRQOLDELOLW\GXHLQPRUHWKDQRQH\HDU
1RWH
1HW23(%OLDELOLW\GXHLQPRUHWKDQRQH\HDU
1RWH
7RWDO/LDELOLWLHV
'HIHUUHG,QIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV
1RWH
5HODWHGWR23(%
1RWH
5HODWHGWROHDVHV
1RWHD
7RWDO'HIHUUHG,QIORZV
RI5HVRXUFHV
1HW3RVLWLRQ
1RWH
1HWLQYHVWPHQWLQFDSLWDODVVHWV
5HVWULFWHGIRU
&DSLWDOSURMHFWV
'HEWVHUYLFH
+RXVLQJSURJUDPV
0DUH,VODQGSURJUDPV
/DQGVFDSHPDLQWHQDQFHGLVWULFWVHUYLFHV 2WKHUVSHFLDOSURMHFWVDQGSURJUDPV
1RQH[SHQGDEOH0F&XQH(QGRZPHQW
8QUHVWULFWHG
'HILFLW
7RWDO1HW3RVLWLRQ
-XQH
3ULPDU\*RYHUQPHQW
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
21 &,7<2)9$//(-2
6WDWHPHQWRI$FWLYLWLHV
<HDU(QGHG-XQH
2SHUDWLQJ &DSLWDO
&KDUJHVIRU &RQWULEXWLRQV &RQWULEXWLRQV
([SHQVHV 6HUYLFHV DQG*UDQWV DQG*UDQWV
)XQFWLRQV3URJUDPV
3ULPDU\*RYHUQPHQW
*RYHUQPHQWDO$FWLYLWLHV
/HJLVODWLYHDQGDGYLVRU\ ([HFXWLYH
)LQDQFH
+XPDQUHVRXUFHV
/DZ
&RPPXQLW\VHUYLFHV
3ODQQLQJDQGGHYHORSPHQWVHUYLFHV
)LUHVHUYLFHV
3ROLFHVHUYLFHV
3XEOLFZRUNV
(FRQRPLFGHYHORSPHQW
,QIRUPDWLRQWHFKQRORJ\
,QWHUHVWRQORQJWHUPGHEW
7RWDO*RYHUQPHQWDO$FWLYLWLHV
%XVLQHVV7\SH$FWLYLWLHV
:DWHU)XQG
0DULQD)XQG
*ROI)XQG
9DOOHMR6WDWLRQ3DUNLQJ)XQG
)LEHU2SWLF)XQG
7RWDO%XVLQHVV7\SH$FWLYLWLHV
7RWDO3ULPDU\*RYHUQPHQW
&RPSRQHQW8QLW
9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW 7D[HV
3URSHUW\WD[HVOHYLHGIRUJHQHUDOSXUSRVH
7UDQVLHQWRFFXSDQF\WD[HV
6DOHVWD[HV
)UDQFKLVHWD[HV
8WLOLW\XVHUVWD[
2WKHUWD[HV
,QYHVWPHQWHDUQLQJV
2WKHU
*DLQ
ORVV
RQVDOHRIFDSLWDODVVHW
6SHFLDO,WHP6DOHDQG'LVSRVDORI0DUH,VODQG3URSHUW\ 7UDQVIHUV
7UDQVIHUV&DSLWDODVVHWV
1RWH
7RWDO*HQHUDO5HYHQXHV6SHFLDO,WHPVDQG7UDQVIHUV
&KDQJHLQ1HW3RVLWLRQ
1HWSRVLWLRQEHJLQQLQJDVUHVWDWHG
1RWH(
1HWSRVLWLRQHQGLQJ
3URJUDP5HYHQXHV
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
22 3ULPDU\*RYHUQPHQW &RPSRQHQW8QLW
9DOOHMR)ORRGDQG
*RYHUQPHQWDO %XVLQHVV7\SH :DVWHZDWHU
$FWLYLWLHV $FWLYLWLHV 7RWDO 'LVWULFW
1HW
([SHQVHV
5HYHQXHVDQG&KDQJHVLQ1HW3RVLWLRQ
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
23 7+,63$*(,17(17,21$//</()7%/$1.
24
)81'),1$1&,$/67$7(0(176
*29(510(17$/)81'6
7KH&LW\UHSRUWHGWKUHHPDMRUJRYHUQPHQWDOIXQGVLQILVFDO\HDU 7KHVHPDMRUIXQGVZHUHSUHVHQWHGLQ WKHLUUHVSHFWLYHFROXPQVDQGGHVFULEHGLQ1RWHG7KHUHPDLQL QJIXQGVZHUHFRPELQHGLQWRDFROXPQWLWOHG ³2WKHU*RYHUQPHQWDO)XQGV,QGLYLGXDOIXQGGDWDIRUHDFKRIWK HVHQRQPDMRUIXQGVPD\EHIRXQGLQWKH 6XSSOHPHQWDO,QIRUPDWLRQVHFWLRQ
25 &,7<2)9$//(-2
%DODQFH6KHHW
*RYHUQPHQWDO)XQGV
-XQH
6SHFLDO
5HYHQXH)XQG
&DSLWDO3URMHFWV
)XQGV
*HQHUDO
$VVHWV
&DVKDQGLQYHVWPHQWV
5HFHLYDEOHV
$FFRXQWV 1RWHVDQGORDQV
$FFUXHGLQWHUHVW
/HDVHV 3UHSDLGVDQGGHSRVLWV
'XHIURPRWKHUJRYHUQPHQWV 'XHIURPRWKHUIXQGV $GYDQFHVWRRWKHUIXQGV 0DWHULDOVSDUWVDQGVXSSOLHV /DQGKHOGIRUUHGHYHORSPHQW
5HVWULFWHGDVVHWV
&DVKDQGLQYHVWPHQWV
&DVKDQGLQYHVWPHQWVZLWKILVFDODJHQWV 7RWDO$VVHWV
/LDELOLWLHV'HIHUUHG,QIORZVRI5HVRXUFHV
DQG)XQG%DODQFHV
/LDELOLWLHV
$FFRXQWVSD\DEOHDQGDFFUXHGOLDELOLWLHV
8QHDUQHGUHYHQXHV
'HSRVLWVSD\DEOH
'XHWRRWKHUJRYHUQPHQWV
'XHWRRWKHUIXQGV
1RWHE
7RWDO/LDELOLWLHV 'HIHUUHG,QIORZVRI5HVRXUFHV
8QDYDLODEOHUHYHQXHV
'HIHUUHGLQIORZVIRUOHDVHV
7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV )XQG%DODQFHV
1RWH
1RQVSHQGDEOH
5HVWULFWHG
&RPPLWWHG $VVLJQHG 8QDVVLJQHG
'HILFLWV
7RWDO)XQG%DODQFHV
7RWDO/LDELOLWLHV'HIHUUHG,QIORZVRI
5HVRXUFHVDQG)XQG%DODQFHV
0DUH,VODQG
&RQYHUVLRQ
+RXVLQJ
$XWKRULW\
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
26 &,7<2)9$//(-2
%DODQFH6KHHW
*RYHUQPHQWDO)XQGV
-XQH
$VVHWV
&DVKDQGLQYHVWPHQWV
5HFHLYDEOHV
$FFRXQWV
1RWHVDQGORDQV
$FFUXHGLQWHUHVW
/HDVHV
3UHSDLGVDQGGHSRVLWV
'XHIURPRWKHUJRYHUQPHQWV
'XHIURPRWKHUIXQGV
$GYDQFHVWRRWKHUIXQGV
0DWHULDOVSDUWVDQGVXSSOLHV
/DQGKHOGIRUUHGHYHORSPHQW
5HVWULFWHGDVVHWV
&DVKDQGLQYHVWPHQWV
&DVKDQGLQYHVWPHQWVZLWKILVFDODJHQWV
7RWDO$VVHWV
/LDELOLWLHV'HIHUUHG,QIORZVRI5HVRXUFHV
DQG)XQG%DODQFHV
/LDELOLWLHV
$FFRXQWVSD\DEOHDQGDFFUXHGOLDELOLWLHV
8QHDUQHGUHYHQXHV
'HSRVLWVSD\DEOH
'XHWRRWKHUJRYHUQPHQWV
'XHWRRWKHUIXQGV
1RWHE
7RWDO/LDELOLWLHV
'HIHUUHG,QIORZVRI5HVRXUFHV
8QDYDLODEOHUHYHQXHV
'HIHUUHGLQIORZVIRUOHDVHV
7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV
)XQG%DODQFHV
1RWH
1RQVSHQGDEOH
5HVWULFWHG
&RPPLWWHG
$VVLJQHG
8QDVVLJQHG
'HILFLWV
7RWDO)XQG%DODQFHV
7RWDO/LDELOLWLHV'HIHUUHG,QIORZVRI
5HVRXUFHVDQG)XQG%DODQFHV
2WKHU 7RWDO
*RYHUQPHQWDO *RYHUQPHQWDO
)XQGV )XQGV
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
27 7+,63$*(,17(17,21$//</()7%/$1.
28 &,7<2)9$//(-2
5HFRQFLOLDWLRQRIWKH%DODQFH6KHHWRI*RYHUQPHQWDO)XQGV WRWKH6WDWHPHQWRI1HW3RVLWLRQ
-XQH
)XQGEDODQFHVRIJRYHUQPHQWDOIXQGV
$PRXQWVUHSRUWHGIRU*RYHUQPHQWDO$FWLYLWLHVLQWKH6WDWHPHQWRI1HW3RVLWLRQ DUHGLIIHUHQWIURPWKRVHUHSRUWHGLQWKH*RYHUQPHQWDO)XQGVDERYHEHFDXVHRIWKHIROORZLQJ
&$3,7$/$66(76
&DSLWDODVVHWVXVHGLQ*RYHUQPHQWDO$FWLYLWLHVDUHQRWFXUUHQWDVVHWVRUILQDQFLDOUHVRXUFHVDQG WKHUHIRUHDUHQRWUHSRUWHGLQWKH*RYHUQPHQWDO)XQGV $//2&$7,212),17(51$/6(59,&()81'1(7326,7,21
,QWHUQDOVHUYLFHIXQGVDUHQRWJRYHUQPHQWDOIXQGV+RZHYHUWKH\DUHXVHGE\PDQDJHPHQWWR FKDUJHWKHFRVWVRIFHUWDLQDFWLYLWLHVVXFKDVLQVXUDQFHDQGFHQWUDOVHUYLFHVDQGPDLQWHQDQFH WRLQGLYLGXDOJRYHUQPHQWDOIXQGV7KHQHWFXUUHQWDVVHWVRIWKH,QWHUQDO6HUYLFH)XQGVDUHWKHUHIRUH LQFOXGHGLQ*RYHUQPHQWDO$FWLYLWLHVLQWKHIROORZLQJOLQHLWHPVLQWKH6WDWHPHQWRI1HW3RVLWLRQ &DVKDQGLQYHVWPHQWV
5HVWULFWHGFDVKZLWKILVFDODJHQW
$FFRXQWVUHFHLYDEOH
0DWHULDOVSDUWVDQGVXSSOLHV
'XHIURPRWKHUIXQGV
3UHSDLGV
&DSLWDODVVHWV
$FFRXQWVSD\DEOH
$FFUXHGLQWHUHVWSD\DEOH
&ODLPVSD\DEOH
1HWSHQVLRQOLDELOLW\DQGSHQVLRQUHODWHGGHIHUUHGRXWIORZVLQIORZVRIUHVRXUFHV
1HW23(%OLDELOLW\DQG23(%UHODWHGGHIHUUHGRXWIORZVLQIORZVRIUHVRXUFHV
/RQJWHUPGHEW
(PSOR\HHEHQHILWVSD\DEOH
$&&58$/2)121&855(175(9(18(6$1'(;3(16(6
5HYHQXHVZKLFKDUHXQDYDLODEOHRQWKH)XQG%DODQFH6KHHWVEHFDXVHWKH\DUHQRWDYDLODEOHFXUUHQWO\
DUHWDNHQLQWRUHYHQXHLQWKH6WDWHPHQWRI$FWLYLWLHV /21*7(50/,$%,/,7,(6
7KHOLDELOLWLHVEHORZDUHQRWGXHDQGSD\DEOHLQWKHFXUUHQWSHULRGDQGWKHUHIRUHDUHQRW UHSRUWHGLQWKH)XQGV
/RQJWHUPGHEW
/HDVH3D\DEOH
6XEVFULSWLRQ3D\DEOH
1HWSHQVLRQOLDELOLW\DQGSHQVLRQUHODWHGGHIHUUHGRXWIORZVLQIORZVRIUHVRXUFHV
$FFUXHGLQWHUHVWSD\DEOH
(PSOR\HHEHQHILWVSD\DEOH
1HW3RVLWLRQRI*RYHUQPHQWDO$FWLYLWLHV 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
29 &,7<2)9$//(-2
6WDWHPHQWRI5HYHQXHV
([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHV
*RYHUQPHQWDO)XQGV
<HDU(QGHG-XQH
6SHFLDO
5HYHQXH)XQG
&DSLWDO3URMHFWV
)XQGV
*HQHUDO
5HYHQXHV
7D[HV /LFHQVHVDQGSHUPLWV
,QWHUJRYHUQPHQWDO
&KDUJHVIRUVHUYLFHV
8VHRIPRQH\DQGSURSHUW\
)LQHVDQGIRUIHLWXUHV
&RQWULEXWLRQV
2WKHU
7RWDO5HYHQXHV
([SHQGLWXUHV
&XUUHQW
/HJLVODWLYHDQGDGYLVRU\
([HFXWLYH
)LQDQFH
+XPDQUHVRXUFHV
/DZ
&RPPXQLW\VHUYLFHV
3ODQQLQJDQGGHYHORSPHQWVHUYLFHV
)LUHVHUYLFHV
3ROLFHVHUYLFHV
3XEOLFZRUNV
(FRQRPLFGHYHORSPHQW
,QIRUPDWLRQWHFKQRORJ\
1RQGHSDUWPHQWDO
&DSLWDORXWOD\
'HEWVHUYLFH
3ULQFLSDOORQJWHUPGHEWSD\PHQWV
3ULQFLSDOOHDVHSD\PHQWV
3ULQFLSDOVXEVFULSWLRQSD\PHQWV
,QWHUHVWDQGILVFDOFKDUJHV
7RWDO([SHQGLWXUHV
([FHVV
'HILFLHQF\
RI5HYHQXHV
2YHU
8QGHU
([SHQGLWXUHV
2WKHU)LQDQFLQJ6RXUFHV
8VHV
7UDQVIHUVLQ
1RWHD
7UDQVIHUVRXW
1RWHD
3URFHHGVIURPVDOHRIFDSLWDODVVHW
/HDVHSURFHHGV
6XEVFULSWLRQSURFHHGV
7RWDO2WKHU)LQDQFLQJ6RXUFHV
8VHV
1HW&KDQJHLQ)XQG%DODQFHV )XQG%DODQFHV%HJLQQLQJRI<HDUDVUHVWDWHG
1RWHH
)XQG%DODQFHV(QGRI<HDU
+RXVLQJ
$XWKRULW\
0DUH,VODQG
&RQYHUVLRQ
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
30 &,7<2)9$//(-2
6WDWHPHQWRI5HYHQXHV
([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHV
*RYHUQPHQWDO)XQGV
<HDU(QGHG-XQH
5HYHQXHV
7D[HV
/LFHQVHVDQGSHUPLWV
,QWHUJRYHUQPHQWDO
&KDUJHVIRUVHUYLFHV
8VHRIPRQH\DQGSURSHUW\
)LQHVDQGIRUIHLWXUHV
&RQWULEXWLRQV
2WKHU
7RWDO5HYHQXHV
([SHQGLWXUHV
&XUUHQW
/HJLVODWLYHDQGDGYLVRU\
([HFXWLYH
)LQDQFH
+XPDQUHVRXUFHV
/DZ
&RPPXQLW\VHUYLFHV
3ODQQLQJDQGGHYHORSPHQWVHUYLFHV
)LUHVHUYLFHV
3ROLFHVHUYLFHV
3XEOLFZRUNV
(FRQRPLFGHYHORSPHQW
,QIRUPDWLRQWHFKQRORJ\
1RQGHSDUWPHQWDO
&DSLWDORXWOD\
'HEWVHUYLFH
3ULQFLSDOORQJWHUPGHEWSD\PHQWV
3ULQFLSDOOHDVHSD\PHQWV
3ULQFLSDOVXEVFULSWLRQSD\PHQWV
,QWHUHVWDQGILVFDOFKDUJHV
7RWDO([SHQGLWXUHV
([FHVV
'HILFLHQF\
RI5HYHQXHV
2YHU
8QGHU
([SHQGLWXUHV
2WKHU)LQDQFLQJ6RXUFHV
8VHV
7UDQVIHUVLQ
1RWHD
7UDQVIHUVRXW
1RWHD
3URFHHGVIURPVDOHRIFDSLWDODVVHW
/HDVHSURFHHGV
6XEVFULSWLRQSURFHHGV
7RWDO2WKHU)LQDQFLQJ6RXUFHV
8VHV
1HW&KDQJHLQ)XQG%DODQFHV
)XQG%DODQFHV%HJLQQLQJRI<HDUDVUHVWDWHG
1RWHH
)XQG%DODQFHV(QGRI<HDU
2WKHU 7RWDO
*RYHUQPHQWDO *RYHUQPHQWDO
)XQGV )XQGV
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
31 &,7<2)9$//(-2
5HFRQFLOLDWLRQRIWKH6WDWHPHQWRI5HYHQXHV([SHQGLWXUHV DQG&KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV
WRWKH6WDWHPHQWRI$FWLYLWLHV
<HDU(QGHG-XQH
7KHVFKHGXOHEHORZUHFRQFLOHVWKH1HW&KDQJHVLQ)XQG%DODQFHVUHSRUWHGRQWKH*RYHUQPHQWDO)XQGV6WDWHPHQWRI 5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHZKLFKPHDVXUHVRQO\FKDQJHVLQFXUUHQWDVVHWVDQGFXUUHQW OLDELOLWLHVRQWKHPRGLILHGDFFUXDOEDVLVZLWKWKH&KDQJHLQ1HW3RVLWLRQRI*RYHUQPHQWDO$FWLYLWLHVUHSRUWHGLQWKH 6WDWHPHQWRI$FWLYLWLHVZKLFKLVSUHSDUHGRQWKHIXOODFFUXDOEDVLV 1HWFKDQJHLQIXQGEDODQFHVWRWDOJRYHUQPHQWDOIXQGV
$PRXQWVUHSRUWHGIRUJRYHUQPHQWDODFWLYLWLHVLQWKHVWDWHPHQWRIDFWLYLWLHVDUH GLIIHUHQWEHFDXVHRIWKHIROORZLQJ
&$3,7$/$66(7675$16$&7,216
*RYHUQPHQWDOIXQGVUHSRUWFDSLWDORXWOD\VDVH[SHQGLWXUHV+RZHYHULQWKH6WDWHPHQW RI$FWLYLWLHVWKHFRVWRIWKRVHDVVHWVLVFDSLWDOL]HGDQGDOORFDWHGRYHU WKHLUHVWLPDWHGXVHIXOOLYHVDQGUHSRUWHGDVGHSUHFLDWLRQH[SHQVH 7KHFDSLWDORXWOD\DQGRWKHUFDSLWDOH[SHQGLWXUHVDUHWKHUHIRUHDGGHGEDFNWRIXQGEDODQFH
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHLVGHGXFWHGIURPWKHIXQGEDODQFH 'HSUHFLDWLRQH[SHQVHLVQHW
RILQWHUQDOVHUYLFHIXQGGHSUHFLDWLRQRIZKLFKKDVDOUHDG\EHHQDOORFDWHG
WRVHUYLFHGIXQGV
'LVSRVDORIFDSLWDODVVHWVVDOHRI0DUH,VODQGSDUFHOV
/RVVRQGLVSRVDORIFDSLWDODVVHWVGHPROLWLRQRI0DUH,VODQGEXLOGLQJV
7UDQVIHURIDVVHWEHWZHHQJRYHUQPHQWDODQGEXVLQHVVW\SH
/21*7(50'(%7352&(('6$1'3$<0(176
%RQGSURFHHGVSURYLGHFXUUHQWILQDQFLDOUHVRXUFHVWRJRYHUQPHQWDOIXQGVEXW LVVXLQJGHEWLQFUHDVHVORQJWHUPOLDELOLWLHVLQWKH6WDWHPHQWRI1HW3RVLWLRQ 5HSD\PHQWRIERQGSULQFLSDOLVDQH[SHQGLWXUHLQWKHJRYHUQPHQWDOIXQGVEXW LQWKH6WDWHPHQWRI1HW3RVLWLRQWKHUHSD\PHQWUHGXFHVORQJWHUPOLDELOLWLHV 5HSD\PHQWRIGHEWSULQFLSDOLVDGGHGEDFNWRIXQGEDODQFH ,QWHUHVWDFFUXHGWRSULQFLSDOLVGHGXFWHGIURPIXQGEDODQFH
/HDVHVLVVXHG
/HDVHSD\DEOHSD\PHQWV
6XEVFULSWLRQLVVXHG
6XEVFULSWLRQSD\PHQWV
$&&58$/2)121&855(17,7(06
7KHDPRXQWVEHORZLQFOXGHGLQWKH6WDWHPHQWRI$FWLYLWLHVGRQRWSURYLGHRU
UHTXLUH
WKHXVHRI
FXUUHQWILQDQFLDOUHVRXUFHVDQGWKHUHIRUHDUHQRWUHSRUWHGDVUHYHQXHRUH[SHQGLWXUHVLQ JRYHUQPHQWDOIXQGV
QHWFKDQJH
,QWHUHVWSD\DEOH
8QDYDLODEOHUHYHQXH
(PSOR\HHEHQHILWVSD\DEOH
1HWSHQVLRQOLDELOLW\DQGSHQVLRQUHODWHGGHIHUUHGRXWIORZV
LQIORZV
RIUHVRXUFHV
$//2&$7,212),17(51$/6(59,&()81'$&7,9,7<
,QWHUQDO6HUYLFH)XQGVDUHXVHGE\PDQDJHPHQWWRFKDUJHWKHFRVWVRIFHUWDLQDFWLYLWLHV VXFKDVHTXLSPHQWDFTXLVLWLRQPDLQWHQDQFHDQGLQVXUDQFHWRLQGLYLGXDOIXQGV 7KHSRUWLRQRIWKHQHWUHYHQXH
H[SHQVH
RIWKHVH,QWHUQDO6HUYLFH)XQGVDULVLQJRXW
RIWKHLUWUDQVDFWLRQVZLWKJRYHUQPHQWDOIXQGVLVUHSRUWHGZLWKJRYHUQPHQWDODFWLYLWLHV EHFDXVHWKH\VHUYLFHWKRVHDFWLYLWLHV
&KDQJHLQ1HW3RVLWLRQ$OO,QWHUQDO6HUYLFH)XQGV &KDQJHLQ1HW3RVLWLRQRI*RYHUQPHQWDO$FWLYLWLHV 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
32
)81'),1$1&,$/67$7(0(176
35235,(7$5<)81'6
7KH&LW\UHSRUWHGDOOHQWHUSULVHIXQGVDVPDMRUIXQGVLQILVFDO \HDU7KHVHIXQGVZHUHSUHVHQWHG LQWKHLUUHVSHFWLYHFROXPQVDQGGHVFULEHGLQ1RWHG$OOLQWH UQDOVHUYLFHIXQGVZHUHFRPELQHGLQWRDVLQJOH DJJUHJDWHG SUHVHQWDWLRQ ,QGLYLGXDO IXQG GDWD IRU HDFK RI WKH LQWHUQDO VHUYLFH IXQGV PD\ EH IRXQG LQ WKH 6XSSOHPHQWDO,QIRUPDWLRQVHFWLRQ
33 &,7<2)9$//(-2
6WDWHPHQWRI1HW3RVLWLRQ
3URSULHWDU\)XQGV
-XQH
$VVHWV
&XUUHQW
&DVKDQGLQYHVWPHQWV
5HFHLYDEOHV
$FFRXQWV
$FFUXHGLQWHUHVW 3UHSDLGFRVWV 'XHIURPRWKHUJRYHUQPHQWV 'XHIURPRWKHUIXQGV
1RWHE
0DWHULDOVSDUWVDQGVXSSOLHV
7RWDO&XUUHQW$VVHWV
1RQFXUUHQW
5HVWULFWHG
&DVKDQGLQYHVWPHQWV &DVKZLWKILVFDODJHQW
7RWDO1RQFXUUHQW$VVHWV
7RWDO$VVHWV
'HIHUUHG2XWIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV
5HODWHGWR23(%
8QDPRUWL]HGORVVRQUHIXQGLQJRIGHEW 7RWDO'HIHUUHG2XWIORZVRI5HVRXUFHV
/LDELOLWLHV
&XUUHQW
$FFRXQWVSD\DEOHDQGDFFUXHGOLDELOLWLHV $FFUXHGLQWHUHVW 8QHDUQHGUHYHQXHV
'HSRVLWVSD\DEOH /HDVHSD\DEOH
6XEVFULSWLRQSD\DEOH (PSOR\HHEHQHILWVSD\DEOH
$FFUXHGFODLPVDQGMXGJPHQWV %RQGVDQGQRWHVSD\DEOH
7RWDO&XUUHQW/LDELOLWLHV
1RQFXUUHQW
$GYDQFHVIURPRWKHUIXQGV (PSOR\HHEHQHILWVSD\DEOH
$FFUXHGFODLPVDQGMXGJPHQWV 1HWSHQVLRQOLDELOLW\
1HW23(%OLDELOLW\ /HDVHSD\DEOH
6XEVFULSWLRQSD\DEOH %RQGVQRWHVDQGORDQVSD\DEOH
7RWDO1RQFXUUHQW/LDELOLWLHV
7RWDO/LDELOLWLHV
'HIHUUHG,QIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV 5HODWHGWR23(%
7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV 1HW3RVLWLRQ
'HILFLWV
1HWLQYHVWPHQWLQFDSLWDODVVHWV
1RWHD
5HVWULFWHGIRUGHEWVHUYLFH 8QUHVWULFWHG
'HILFLWV
7RWDO1HW3RVLWLRQ
'HILFLWV
%XVLQHVV7\SH$FWLYLWLHV(QWHUSULVH)XQGV
&DSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ :DWHU)XQG 0DULQD)XQG *ROI)XQG
9DOOHMR6WDWLRQ
3DUNLQJ)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
34 &,7<2)9$//(-2
6WDWHPHQWRI1HW3RVLWLRQ
3URSULHWDU\)XQGV
-XQH
$VVHWV
&XUUHQW
&DVKDQGLQYHVWPHQWV
5HFHLYDEOHV
$FFRXQWV
$FFUXHGLQWHUHVW
3UHSDLGFRVWV
'XHIURPRWKHUJRYHUQPHQWV
'XHIURPRWKHUIXQGV
1RWHE
0DWHULDOVSDUWVDQGVXSSOLHV
7RWDO&XUUHQW$VVHWV
1RQFXUUHQW
5HVWULFWHG
&DVKDQGLQYHVWPHQWV
&DVKZLWKILVFDODJHQW
7RWDO1RQFXUUHQW$VVHWV
7RWDO$VVHWV
'HIHUUHG2XWIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV
5HODWHGWR23(%
8QDPRUWL]HGORVVRQUHIXQGLQJRIGHEW
7RWDO'HIHUUHG2XWIORZVRI5HVRXUFHV
/LDELOLWLHV
&XUUHQW
$FFRXQWVSD\DEOHDQGDFFUXHGOLDELOLWLHV
$FFUXHGLQWHUHVW
8QHDUQHGUHYHQXHV
'HSRVLWVSD\DEOH
/HDVHSD\DEOH
6XEVFULSWLRQSD\DEOH
(PSOR\HHEHQHILWVSD\DEOH
$FFUXHGFODLPVDQGMXGJPHQWV
%RQGVDQGQRWHVSD\DEOH
7RWDO&XUUHQW/LDELOLWLHV
1RQFXUUHQW
$GYDQFHVIURPRWKHUIXQGV
(PSOR\HHEHQHILWVSD\DEOH
$FFUXHGFODLPVDQGMXGJPHQWV
1HWSHQVLRQOLDELOLW\
1HW23(%OLDELOLW\
/HDVHSD\DEOH
6XEVFULSWLRQSD\DEOH
%RQGVQRWHVDQGORDQVSD\DEOH
7RWDO1RQFXUUHQW/LDELOLWLHV
7RWDO/LDELOLWLHV
'HIHUUHG,QIORZVRI5HVRXUFHV
5HODWHGWRSHQVLRQV
5HODWHGWR23(%
7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV
1HW3RVLWLRQ
'HILFLWV
1HWLQYHVWPHQWLQFDSLWDODVVHWV
1RWHD
5HVWULFWHGIRUGHEWVHUYLFH
8QUHVWULFWHG
'HILFLWV
7RWDO1HW3RVLWLRQ
'HILFLWV
&DSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
*RYHUQPHQWDO
$FWLYLWLHV
,QWHUQDO
7RWDOV 6HUYLFH)XQGV
%XVLQHVV7\SH$FWLYLWLHV
(QWHUSULVH)XQGV
)LEHU2SWLF
)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
35 &,7<2)9$//(-2
6WDWHPHQWRI5HYHQXHV([SHQVHV
DQG&KDQJHVLQ)XQG1HW3RVLWLRQ
3URSULHWDU\)XQGV
<HDU(QGHG-XQH
2SHUDWLQJ5HYHQXHV
6DOHVDQGVHUYLFHFKDUJHV
2WKHU
7RWDO2SHUDWLQJ5HYHQXHV
2SHUDWLQJ([SHQVHV
*HQHUDODQGDGPLQLVWUDWLYH 2SHUDWLRQVH[SHQVHV
,QVXUDQFHDQGFODLPV 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
7RWDO2SHUDWLQJ([SHQVHV
2SHUDWLQJ,QFRPH
/RVV
1RQRSHUDWLQJ5HYHQXHV
([SHQVHV
,QWHUJRYHUQPHQWDOUHYHQXH ,QYHVWPHQWLQFRPH
ORVV
,QWHUHVWH[SHQVHDQGILVFDOFKDUJHV
*DLQ
ORVV
RQGLVSRVDORIFDSLWDODVVHWV
7RWDO1RQRSHUDWLQJ
5HYHQXHV
([SHQVHV
,QFRPH
/RVV
%HIRUH7UDQVIHUVDQG&RQWULEXWLRQV
7UDQVIHUVLQ 7UDQVIHUVRXW &DSLWDOFRQWULEXWLRQGHYHORSHUV
&DSLWDOFRQWULEXWLRQ*RYHUQPHQWDOIXQGV
&KDQJHVLQ1HW3RVLWLRQ
1HW3RVLWLRQ
'HILFLW
%HJLQQLQJRI<HDU
(QGRI)LVFDO<HDU
'HILFLW
%XVLQHVV7\SH$FWLYLWLHV(QWHUSULVH)XQGV
:DWHU)XQG 0DULQD)XQG *ROI)XQG
9DOOHMR6WDWLRQ
3DUNLQJ)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
36 &,7<2)9$//(-2
6WDWHPHQWRI5HYHQXHV([SHQVHV
DQG&KDQJHVLQ)XQG1HW3RVLWLRQ
3URSULHWDU\)XQGV
<HDU(QGHG-XQH
2SHUDWLQJ5HYHQXHV
6DOHVDQGVHUYLFHFKDUJHV
2WKHU
7RWDO2SHUDWLQJ5HYHQXHV
2SHUDWLQJ([SHQVHV
*HQHUDODQGDGPLQLVWUDWLYH
2SHUDWLRQVH[SHQVHV
,QVXUDQFHDQGFODLPV
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVH
7RWDO2SHUDWLQJ([SHQVHV
2SHUDWLQJ,QFRPH
/RVV
1RQRSHUDWLQJ5HYHQXHV
([SHQVHV
,QWHUJRYHUQPHQWDOUHYHQXH
,QYHVWPHQWLQFRPH
ORVV
,QWHUHVWH[SHQVHDQGILVFDOFKDUJHV
*DLQ
ORVV
RQGLVSRVDORIFDSLWDODVVHWV
7RWDO1RQRSHUDWLQJ
5HYHQXHV
([SHQVHV
,QFRPH
/RVV
%HIRUH7UDQVIHUVDQG&RQWULEXWLRQV
7UDQVIHUVLQ
7UDQVIHUVRXW
&DSLWDOFRQWULEXWLRQGHYHORSHUV
&DSLWDOFRQWULEXWLRQ*RYHUQPHQWDOIXQGV
&KDQJHVLQ1HW3RVLWLRQ
1HW3RVLWLRQ
'HILFLW
%HJLQQLQJRI<HDU
(QGRI)LVFDO<HDU
'HILFLW
*RYHUQPHQWDO
$FWLYLWLHV
,QWHUQDO
7RWDOV 6HUYLFH)XQGV
%XVLQHVV7\SH$FWLYLWLHV
(QWHUSULVH)XQGV
)LEHU2SWLF
)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
37 &,7<2)9$//(-2
6WDWHPHQWRI&DVK)ORZV
3URSULHWDU\)XQGV
<HDU(QGHG-XQH
&DVK)ORZVIURP2SHUDWLQJ$FWLYLWLHV
5HFHLSWVIURPFXVWRPHUV 3D\PHQWVWRVXSSOLHUV
3D\PHQWVWRRURQEHKDOIRIHPSOR\HHV
&ODLPVSDLG 1HW&DVK3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
&DVK)ORZVIURP1RQ&DSLWDO
)LQDQFLQJ$FWLYLWLHV
,QWHUIXQGUHFHLSWV ,QWHUIXQGSD\PHQWV 1HWLQWHUJRYHUQPHQWDOUHFHLSWV
1HW&DVK3URYLGHG
8VHG
E\
1RQ&DSLWDO)LQDQFLQJ$FWLYLWLHV
&DVK)ORZVIURP&DSLWDO
DQG5HODWHG)LQDQFLQJ$FWLYLWLHV
&DSLWDOJUDQWVDQGFRQWULEXWLRQV
$FTXLVLWLRQRIFDSLWDODVVHWV
3ULQFLSDOSD\PHQWVRQFDSLWDOGHEW
3ULQFLSDOSDLGRQOHDVHOLDELOLW\
3ULQFLSDOSDLGRQVXEVFULSWLRQOLDELOLW\
,QWHUHVWSDLGRQFDSLWDOGHEW
1HZORDQLVVXHG 3URFHHGVRQVDOHRIFDSLWDODVVHWV 1HW&DVK3URYLGHG
8VHG
E\
&DSLWDODQG5HODWHG)LQDQFLQJ$FWLYLWLHV
&DVK)ORZVIURP,QYHVWLQJ$FWLYLWLHV
,QYHVWPHQWLQFRPH
ORVVHV
1HW&DVK3URYLGHG
8VHG
E\
,QYHVWLQJ$FWLYLWLHV
1HW,QFUHDVH
'HFUHDVH
LQ&DVK
DQG&DVK(TXLYDOHQWV
&DVKDQG&DVK(TXLYDOHQWVDW%HJLQQLQJRI<HDU
&DVKDQG&DVK(TXLYDOHQWVDW(QGRI<HDU
5HFRQFLOLDWLRQRI2SHUDWLQJ,QFRPH
/RVV
WR1HW&DVK
3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
2SHUDWLQJLQFRPH
ORVV
$GMXVWPHQWVWR5HFRQFLOH2SHUDWLQJ,QFRPH
/RVV
1HW&DVK3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
&KDQJHVLQSHQVLRQUHODWHGLWHPV
&KDQJHVLQ23(%UHODWHGLWHPV
,QFUHDVH
GHFUHDVHLQDFFRXQWVUHFHLYDEOHQHW
,QFUHDVH
GHFUHDVHLQLQYHQWRU\DQGSUHSDLGV
,QFUHDVH
GHFUHDVH
LQGHSRVLWVSD\DEOH
,QFUHDVH
GHFUHDVH
LQXQHDUQHGUHYHQXH
,QFUHDVH
GHFUHDVH
LQFODLPVSD\DEOH ,QFUHDVH
GHFUHDVH
LQHPSOR\HHEHQHILWVSD\DEOH
7RWDO$GMXVWPHQWV
1HW&DVK3URYLGHG
8VHG
E\
2SHUDWLQJ$FWLYLWLHV
1RQ&DVK,QYHVWLQJ&DSLWDODQG)LQDQFLQJ$FWLYLWLHV
$FFUHWHGLQWHUHVW $PRUWL]DWLRQRIERQGSUHPLXP
$PRUWL]DWLRQRIORVVRQUHIXQGLQJRIGHEW
0DULQD)XQG *ROI)XQG
9DOOHMR6WDWLRQ
3DUNLQJ)XQG
,QFUHDVH
GHFUHDVH
LQDFFRXQWVSD\DEOHDQGRWKHU
DFFUXHGH[SHQVHV
%XVLQHVV7\SH$FWLYLWLHV(QWHUSULVH)XQGV
:DWHU)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
38 &,7<2)9$//(-2
6WDWHPHQWRI&DVK)ORZV
3URSULHWDU\)XQGV
<HDU(QGHG-XQH
&DVK)ORZVIURP2SHUDWLQJ$FWLYLWLHV
5HFHLSWVIURPFXVWRPHUV
3D\PHQWVWRVXSSOLHUV
3D\PHQWVWRRURQEHKDOIRIHPSOR\HHV
&ODLPVSDLG
1HW&DVK3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
&DVK)ORZVIURP1RQ&DSLWDO
)LQDQFLQJ$FWLYLWLHV
,QWHUIXQGUHFHLSWV
,QWHUIXQGSD\PHQWV
1HWLQWHUJRYHUQPHQWDOUHFHLSWV
1HW&DVK3URYLGHG
8VHG
E\
1RQ&DSLWDO)LQDQFLQJ$FWLYLWLHV
&DVK)ORZVIURP&DSLWDO
DQG5HODWHG)LQDQFLQJ$FWLYLWLHV
&DSLWDOJUDQWVDQGFRQWULEXWLRQV
$FTXLVLWLRQRIFDSLWDODVVHWV
3ULQFLSDOSD\PHQWVRQFDSLWDOGHEW
3ULQFLSDOSDLGRQOHDVHOLDELOLW\
3ULQFLSDOSDLGRQVXEVFULSWLRQOLDELOLW\
,QWHUHVWSDLGRQFDSLWDOGHEW
1HZORDQLVVXHG
3URFHHGVRQVDOHRIFDSLWDODVVHWV
1HW&DVK3URYLGHG
8VHG
E\
&DSLWDODQG5HODWHG)LQDQFLQJ$FWLYLWLHV
&DVK)ORZVIURP,QYHVWLQJ$FWLYLWLHV
,QYHVWPHQWLQFRPH
ORVVHV
1HW&DVK3URYLGHG
8VHG
E\
,QYHVWLQJ$FWLYLWLHV
1HW,QFUHDVH
'HFUHDVH
LQ&DVK
DQG&DVK(TXLYDOHQWV
&DVKDQG&DVK(TXLYDOHQWVDW%HJLQQLQJRI<HDU
&DVKDQG&DVK(TXLYDOHQWVDW(QGRI<HDU
5HFRQFLOLDWLRQRI2SHUDWLQJ,QFRPH
/RVV
WR1HW&DVK
3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
2SHUDWLQJLQFRPH
ORVV
$GMXVWPHQWVWR5HFRQFLOH2SHUDWLQJ,QFRPH
/RVV
1HW&DVK3URYLGHG
8VHG
E\2SHUDWLQJ$FWLYLWLHV
'HSUHFLDWLRQDQGDPRUWL]DWLRQ
&KDQJHVLQSHQVLRQUHODWHGLWHPV
&KDQJHVLQ23(%UHODWHGLWHPV
,QFUHDVH
GHFUHDVHLQDFFRXQWVUHFHLYDEOHQHW
,QFUHDVH
GHFUHDVHLQLQYHQWRU\DQGSUHSDLGV
,QFUHDVH
GHFUHDVH
LQGHSRVLWVSD\DEOH
,QFUHDVH
GHFUHDVH
LQXQHDUQHGUHYHQXH
,QFUHDVH
GHFUHDVH
LQFODLPVSD\DEOH
,QFUHDVH
GHFUHDVH
LQHPSOR\HHEHQHILWVSD\DEOH
7RWDO$GMXVWPHQWV
1HW&DVK3URYLGHG
8VHG
E\
2SHUDWLQJ$FWLYLWLHV
1RQ&DVK,QYHVWLQJ&DSLWDODQG)LQDQFLQJ$FWLYLWLHV
$FFUHWHGLQWHUHVW
$PRUWL]DWLRQRIERQGSUHPLXP
$PRUWL]DWLRQRIORVVRQUHIXQGLQJRIGHEW
,QFUHDVH
GHFUHDVH
LQDFFRXQWVSD\DEOHDQGRWKHU
DFFUXHGH[SHQVHV
%XVLQHVV7\SH
$FWLYLWLHV
(QWHUSULVH)XQGV
*RYHUQPHQWDO
$FWLYLWLHV
,QWHUQDO
7RWDOV 6HUYLFH)XQGV
)LEHU2SWLF)XQG
6HH1RWHVWR)LQDQFLDO6WDWHPHQWV
39 7+,63$*(,17(17,21$//</()7%/$1.
40
)81'),1$1&,$/67$7(0(176
),'8&,$5<)81'6
7KH&LW\KDVWZRW\SHVRIILGXFLDU\IXQGV
WKHFXVWRGLDOIXQGVDQGSULYDWHSXUSRVHWUXVWIXQGV7KHFXVWRGLDOIXQGV ZHUHFRPELQHGLQWRDVLQJOHFROXPQ,QGLYLGXDOIXQGGDWDRIHDF KRIWKHFXVWRGLDOIXQGVPD\EHIRXQGLQ 6XSSOHPHQWDO,QIRUPDWLRQVHFWLRQ
41 &,7<2)9$//(-2
6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ
-XQH
&XVWRGLDO
)XQGV
$VVHWV
&DVKDQGLQYHVWPHQWV
5HVWULFWHGFDVKDQGLQYHVWPHQWVZLWKILVFDODJHQWV
&DSLWDODVVHWV
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHG
&DSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQ
7RWDO$VVHWV
/LDELOLWLHV
$FFUXHGLQWHUHVW
'HSRVLWVSD\DEOH
'XHWRRWKHUJRYHUQPHQWV
'XHLQRQH\HDU
'XHLQPRUHWKDQRQH\HDU
7RWDO/LDELOLWLHV
1HW3RVLWLRQ
'HILFLW
5HVWULFWHGIRUJRYHUPHQWVLQGLYLGXDOVRURWKHURUJDQL]DWLRQV 'HILFLW
7RWDO1HW3RVLWLRQ
'HILFLW
3ULYDWH
3XUSRVH7UXVW
)XQG
6XFFHVVRU
$JHQF\
42 &,7<2)9$//(-2
6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ
<HDU(QGHG-XQH
$GGLWLRQV
,QYHVWPHQWHDUQLQJV
5HGHYHORSPHQWSURSHUW\WD[WUXVWIXQGGLVWULEXWLRQ
&ROOHFWLRQVIRUDVVHVVPHQWGLVWULFWV
7RWDO$GGLWLRQV
'HGXFWLRQV
$GPLQLVWUDWLYHH[SHQVHV
,QWHUHVWDQGILVFDOFKDUJHV
'HSUHFLDWLRQH[SHQVH
7RWDO'HGXFWLRQV
1HW,QFUHDVHLQ)LGXFLDU\1HW3RVLWLRQ 1HW3RVLWLRQ
'HILFLW
%HJLQQLQJ
5HVWDWHPHQWRI1HW3RVLWLRQ
'HILFLW
1HW3RVLWLRQ
'HILFLW
%HJLQQLQJDV5HVWDWHG
1HW3RVLWLRQ
'HILFLW
(QGLQJ
&XVWRGLDO
)XQGV
3ULYDWH
3XUSRVH7UXVW
)XQG
6XFFHVVRU
$JHQF\
43 THIS PAGE INTENTIONALLY LEFT BLANK
44 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
$ )LQDQFLDO5HSRUWLQJ(QWLW\
7KH&LW\ZDVLQFRUSRUDWHGLQDVDFKDUWHU&LW\ZLWKD&RX QFLO0DQDJHUIRUPRI*RYHUQPHQWDQG SURYLGHV DOOPXQLFLSDOVHUYLFHVH[FOXGLQJJDUEDJHGLVSRVDODQGHOHFWULFLW\
7KHDFFRPSDQ\LQJEDVLFILQDQFLDOVWDWHPHQWVSUHVHQWWKHILQDQFLDODFWLYLW\RIWKH&LW\ZKLFKLVWKHSULPDU\JRYHUQPHQW SUHVHQWHGDORQJZLWKWKHILQDQFLDODFWLYLWLHVRILWVFRPSRQHQWXQLWVZKLFKDUHHQWLWLHVIRUZKLFK WKH&LW\LVILQDQFLDOO\ DFFRXQWDEOH $OWKRXJKWKH\DUHVHSDUDWHOHJDOHQWLWLHVEOHQGHGFRPSRQHQWXQLWVDUHLQ VXEVWDQFHSDUWRIWKH&LW\¶V RSHUDWLRQVDQGDUHUHSRUWHGDVDQLQWHJUDOSDUWRIWKH&LW\¶VILQDQFLDOVWDWHPHQWV(DFKGLVFUHWHO\SUHVHQWHGFRPSRQHQW XQLWRQWKHRWKHUKDQGLVUHSRUWHGLQDVHSDUDWHFROXPQLQWKHEDVLF ILQDQFLDOVWDWHPHQWVWRHPSKDVL]HLWLVOHJDOO\ VHSDUDWHIURPWKHJRYHUQPHQW
7KH&LW\¶VFRPSRQHQWXQLWVDUHGHVFULEHGEHORZ
x +RXVLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 0DULQH:RUOG-RLQW3RZHUV$XWKRULW\
%OHQGHG&RPSRQHQW8QLW
x 3DUNLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 3XEOLF)LQDQFLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR
%OHQGHG&RPSRQHQW8QLW
x 9DOOHMR+RPHOHVV1DYLJDWLRQ&HQWHU-3$
%OHQGHG&RPSRQHQW8QLW
x 9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW
'LVFUHWH&RPSRQHQW8QLW
x 9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW)LQDQFLQJ&RUSRUDWLRQ 'LVFUHWH&RPSRQHQW8QLW
$GGLWLRQDO ILQDQFLDO LQIRUPDWLRQ IRU HDFK RI WKHVH HQWLWLHV FDQ EH REWDLQHG IURP WKH )LQDQFH 'HSDUWPHQW &LW\RI9DOOHMR6DQWD&ODUD6WUHHW9DOOHMR&DOLIRUQLD
35,0$5<*29(510(17
7KHILQDQFLDOVWDWHPHQWVRIWKHSULPDU\JRYHUQPHQWRIWKH&LW\RI9DOOHMRLQFOXGHWKHDFWLYLWLHVRIWKH&LW\ DVZHOODV WKH+RXVLQJ$XWKRULW\RIWKH&LW\RI9DOOHMRWKH0DULQH:RUOG -RLQW3RZHUV$XWKRULW\WKH 3DUNLQJ$XWKRULW\RI WKH&LW\RI9DOOHMRWKH3XEOLF)LQDQFLQJ$XWKRULW\RIWKH&LW\RI9DOOHMRDQGWKH9DOOHMR+RPHOHVV1DYLJDWLRQ&HQWHU -3$DOORIZKLFKDUHFRQWUROOHGE\DQGGHSHQGHQWRQWKH&LW\:KLOHWKHVHDUH VHSDUDWHOHJDOHQWLWLHVWKHLUILQDQFLDO DFWLYLWLHV DUH LQWHJUDO WR WKRVH RI WKH &LW\ 7KHLU ILQDQFLDO DFWLYLWLHV KDYH EHHQ DJJUHJDWHG DQG PHUJHG
WHUPHG³EOHQGHG´
ZLWKWKRVHRIWKHSULPDU\JRYHUQPHQWRIWKH&LW\LQ WKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWV
%OHQGHG&RPSRQHQW8QLWV
7KH +RXVLQJ $XWKRULW\ RI WKH &LW\ RI 9DOOHMR ZDV IRUPHG LQ -XQH DQG LV RUJDQL]HG XQGHU WKH
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
6HSDUDWH ILQDQFLDO VWDWHPHQWV IRU WKH +RXVLQJ $XWKRULW\ PD\ EHREWDLQHG E\ FRQWDFWLQJ WKH RIILFH RI WKH )LQDQFH'LUHFWRUDW6DQWD&ODUD6WUHHW9DOOHMR&DOLIRUQLD
SKRQH
45 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
7KH 0DULQH :RUOG -RLQW 3RZHUV $XWKRULW\ ²ZDVIRUPHGLQ2FWREHU
SXUVXDQWWRWKH-RLQW ([HUFLVH
RI3RZHUV$FWRIWKH*RYHUQPHQW&RGHRIWKH6WDWHRI&DOLIRUQLD IRUWKHSXUSRVHRIDVVXPLQJ RZQHUVKLSRIWKH 0DULQH:RUOG$IULFD86$WKHPHSDUNIURPWKH0DULQH:RUOG)RXQGD WLRQ7KH&LW\ &RXQFLOLVWKHJRYHUQLQJERG\ RIWKH0DULQH:RUOG-3$7KH&LW\KDVIXOODFFRXQWDELOLW\IRUWKH$XWKRULW\¶VILVFDODIIDLUV7KH$XWKRULW\KDGQRDFWLYLW\ DQGKDGQRDVVHWVRUOLDELOLWLHVGXULQJWKH\HDUHQGHG-XQH 7KH$XWKRULW\GRHVQRWLVVXHVHSDUDWHILQDQFLDO VWDWHPHQWV
7KH3DUNLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR²ZDVIRUPHGLQ0D\ SXUVXDQWWRWKHSURYLVLRQVRI &DOLIRUQLD
VWDWXWHV2SHUDWLRQVRIWKH3DUNLQJ$XWKRULW\EHJDQLQ0D\ ZLWKWKHH[HFXWLRQRIDMRLQW SRZHUVDJUHHPHQW
ZLWKWKH&LW\7KHSXUSRVHRIWKLVDJUHHPHQWZDVWRSURYLGHWKHDFTXLVLWLRQFRQVWUXFWLRQILQDQFLQJDQGRSHUDWLRQ RI SDUNLQJ IDFLOLWLHV LQ WKH GRZQWRZQ DUHD RI WKH &LW\ 7KH &LW\ &RXQFLOLVWKHJRYHUQLQJERDUGRIWKH 3DUNLQJ$XWKRULW\7KH&LW\KDVIXOODFFRXQWDELOLW\IRUWKH$XWKRULW\¶VILVFDODIIDLUV7KH$XWKRULW\¶VSDUFHOVRIODQGKDG DFDUU\LQJYDOXHRIDVRI-XQH7KH $XWKRULW\LVLQDFWLYHDQGKDGQRDFWLYLW\GXULQJWKH\HDUHQGHG -XQH7KH$XWKRULW\GRHVQRWLVVXH VHSDUDWHILQDQFLDOVWDWHPHQWV
7KH3XEOLF)LQDQFLQJ$XWKRULW\RIWKH&LW\RI9DOOHMR²ZDVIRUPHGLQ-XO\
7KHSULPDU\SXUSRVH RIWKH
)LQDQFLQJ $XWKRULW\ LV WR SURYLGH ILQDQFLQJ IRU &LW\ SURMHFWV7KH &LW\ &RXQFLO LV WKH JRYHUQLQJ ERDUGRIWKH )LQDQFLQJ$XWKRULW\7KH&LW\KDVIXOODFFRXQWDELOLW\IRUWKH$ XWKRULW\¶VILVFDODIIDLUV7KH DFWLYLWLHVRIWKH$XWKRULW\ DUHEOHQGHGZLWKWKH&HUWLILFDWHVRI3DUWLFLSDWLRQ'HEW6HUYLFH)XQG0DULQD(QWHUSULVH)XQG*ROI(QWHUSULVH)XQG DQGILGXFLDU\IXQGV7KH$XWKRULW\GRHVQRWLVVXHVHSDUDWHILQDQFLDOVWDWHPHQWV
9DOOHMR+RPHOHVV1DYLJDWLRQ&HQWHU-RLQW3RZHUV$XWKRULW\ -3$
²LVDMRLQWSRZHUVDXWKRULW\IRUPHGLQ
XQGHU&KDSWHU'LYLVLRQ7LWOHRIWKH*RYHUQPHQW&RGHRIWKH6WDWHRI&DOLIRUQLD FRPPHQFLQJZLWKVHFWLRQ
LQRUGHUWRSURYLGHWKH&LW\¶VKRPHOHVVSRSXODWLRQZLWKDFFHVVWRYLWDOVHUYLFHV7KLVFHQWHUZLOODOVRSURYLGHWKH&LW\¶V KRPHOHVVSRSXODWLRQZLWKWHPSRUDU\KRXVLQJDWDQDYLJDWLRQFHQWHUZKLFKZLOOLQFOXGHDQRSSRUWXQLW\WREHFRQQHFWHG WRSHUPDQHQWKRXVLQJMREVDQGDQLQFRPHVRWKDWWKH\PD\EHFRP HVHOIVXIILFLHQW7KH$XWKRULW\GRHVQRWLVVXH VHSDUDWHILQDQFLDOVWDWHPHQWV
',6&5(7(/<35(6(17('&20321(1781,76
9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW
9):'
²ZDVFUHDWHGE\DQDFWRIWKH&DOLIRUQLDOHJLVODWXUHDQG EHJDQ RSHUDWLRQVLQ$SULO
DVWKH9DOOHMR6DQLWDWLRQDQG)ORRG&R QWURO'LVWULFW 96)&'
96)&' FKDQJHGLWVQDPH
WRWKH9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFWGXULQJILVFDO\HDU7KHSXUSRVHRIWKH$FWZDVWRJLYHDXWRQRPRXV DXWKRULW\WR9):'WRSURYLGHIRUWKHFROOHFWLRQWUHDWPHQWDQG GLVSRVDORI ZDVWHZDWHUDQGWRFRQWURODQGGLVSRVH RIVWRUPZDWHUV)URP
WR
9):'ZDVSDUWRIWKH&LW\¶VRSHUDWLRQV&RPPHQFLQJ-XO\
WKH9):'
EHFDPHDVHSDUDWHGLVWULFWIURPWKH&LW\7KH%RDUGQRZ FRQVLVWVRIWKHVHYHQHOHFWHG&LW\&RXQFLOPHPEHUVDQG RQHPHPEHUDSSRLQWHGE\WKH6RODQR&RXQW\%RDUG RI6XSHUYLVRUV$OWKRXJKWKH&LW\&RXQFLOH[HUFLVHVFRQWURORYHU WKH%RDUGRI9):'WKHUHLVQR RSHUDWLRQDOUHVSRQVLELOLW\RUILQDQFLDOEHQHILWRUEXUGHQUHODWLRQVKLSZLWKWKHSULPDU\ JRYHUQPHQW6HSDUDWHILQDQFLDOVWDWHPHQWVIRU9):'PD\EHREWDL QHGE\FRQWDFWLQJ5\GHU6WUHHW9DOOHMR &DOLIRUQLD
9DOOHMR )ORRG DQG :DVWHZDWHU 'LVWULFW )LQDQFLQJ &RUSRUDWLRQ 9):')&
²LV D QRQSURILW SXEOLF EHQHILW
FRUSRUDWLRQRUJDQL]HGLQ-XO\
DVWKH9DOOHMR6DQLWDWLRQDQ G)ORRG&RQWURO'LVWULFW)LQDQFLQJ &RUSRUDWLRQ
96)&')&
DQGZDVUHQDPHGWRWKH9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW)LQDQFLQJ &RUSRUDWLRQLQ0DUFK 7KH9):')&ZDVRUJDQL]HGXQGHUWKHODZVRIWKH6WDWHRI&DOLIRUQLDIRUWKH SXUSRVHRIDVVLVWLQJWKH9):'LQ IXQGLQJFHUWDLQSURMHFWVDQGRWKHUPDWWHUVUHODWLQJWRWKHSXUS RVHRI 9):'0HPEHUVRIWKH%RDUGIRU9):' VHUYH DV 'LUHFWRUV RI WKH 9):')& 7KH DFWLYLWLHV RI WKH 9):')&DUHEOHQGHGZLWKWKH9):'DQGVHSDUDWH ILQDQFLDOVWDWHPHQWVDUHQRWSUHSDUHGIRUWKH9):')&
% %DVLVRI3UHVHQWDWLRQ
7KHVHBasic Financial Statements DUHSUHSDUHGLQFRQIRUPLW\ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH 8QLWHG 6WDWHV RI $PHULFD DV DSSOLHG WR JRYHUQPHQWDO DJHQFLHV 7KH *RYHUQPHQWDO$FFRXQWLQJ6WDQGDUGV %RDUGLVWKHDFNQRZOHGJHGVWDQGDUGVHWWLQJERG\IRUHVWDEOLVKLQ JDFFRXQWLQJDQGILQDQFLDOUHSRUWLQJVWDQGDUGV IROORZHGE\JRYHUQPHQWDOHQWLWLHVLQWKH8QLWHG6WDWHVRI$PHULFD 46 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
7KH&LW\¶VILQDQFLDOSRVLWLRQDQGUHVXOWVRIRSHUDWLRQVDUHSUHVHQWHGIURPWZRSHUVSHFWLYHVLQWKHIROORZLQJWZRVHWV RIILQDQFLDOVWDWHPHQWV
*RYHUQPHQWZLGH 6WDWHPHQWV
7KH JRYHUQPHQWZLGH ILQDQFLDO VWDWHPHQWV LQFOXGLQJ WKH Statement of Net Position DQGWKHStatement of Activities, UHSRUWWKHILQDQFLDODFWLYLWLHVRIWKHSULPDU\JRYHUQPHQW WKH&LW\
DQG
LWVEOHQGHGDQGGLVFUHWHO\SUHVHQWHGFRPSRQHQWXQLWV
*RYHUQPHQWDODFWLYLWLHVZKLFKQRUPDOO\DUHVXSSRUWHGE\WD[HV DQGLQWHUJRYHUQPHQWDOUHYHQXHVDUHUHSRUWHG VHSDUDWHO\IURPEXVLQHVVW\SHDFWLYLWLHVZKLFKUHO\WRDVLJQLILFDQWH[WHQWRQIHHVDQGFKDUJHVIRUVXSSRUW)LGXFLDU\ DFWLYLWLHVRIWKH&LW\ZKLFKDUHFXVWRGLDOLQQDWXUHDUHQRW LQFOXGHGLQWKHVH VWDWHPHQWV DQG DUH SUHVHQWHG VHSDUDWHO\(OLPLQDWLRQVKDYHEHHQPDGHWRPLQLPL]HWKHGRXEOHFRXQWLQJRILQWHUQDODFWLYLWLHV$OOLQWHUQDOEDODQFHV LQ WKH Statement of Net Position KDYH EHHQ HOLPLQDWHG H[FHSW WKRVHUHSUHVHQWLQJEDODQFHVEHWZHHQWKH JRYHUQPHQWDODQGEXVLQHVVW\SHDFWLYLWLHV
7KHStatement of Activities SUHVHQWVDFRPSDULVRQEHWZHHQGLUHFWH[SHQVHVDQGSURJUDPUHYHQXHVIRUHDFKIXQFWLRQ RIWKH&LW\'LUHFWH[SHQVHVDUHWKRVHWKDWDUHVSHFLILFDOO\DVVRFLDWHGZLWKDSURJUDPRUIXQFWLRQ&HUWDLQLQGLUHFW FRVWVDUHLQFOXGHGLQSURJUDPH[SHQVHVUHSRUWHGIRULQGLYLGXDOIXQFWLRQVDQGDFWLYLWLHV3URJUDPUHYHQXHVLQFOXGH
D
FKDUJHVSDLGE\WKHUHFLSLHQWVRIJRRGVRUVHUYLFHVRIIHUHG E\WKHSURJUDPV E
RSHUDWLQJ JUDQWV DQG
FRQWULEXWLRQVWKDWDUHUHVWULFWHGWRPHHWLQJWKHRSHUDWLRQDOQH HGVRIDSDUWLFXODUSURJUDPDQG F
FDSLWDOIHHV
JUDQWVDQGFRQWULEXWLRQVWKDWDUHUHVWULFWHGWRILQDQFLQJWKHDFTXLVLWLRQRUFRQVWUXFWLRQRIFDSLWDODVVHWV5HYHQXHV WKDWDUHQRWFODVVLILHGDVSURJUDPUHYHQXHVDUHSUHVHQWHGDVJH QHUDOUHYHQXHV
7KH&LW\PD\SD\IRULWVSURJUDPVZLWKDFRPELQDWLRQRIFRVWUH LPEXUVHPHQWJUDQWVFDWHJRULFDOEORFNJUDQWV DQGJHQHUDOUHYHQXHV7KXVERWKUHVWULFWHGDQGXQUHVWULFWHGQH WSRVLWLRQPD\EHDYDLODEOHWRILQDQFHSURJUDP H[SHQGLWXUHV7KH&LW\¶VSROLF\LVWRILUVWDSSO\UHVWULFWHGJU DQWUHVRXUFHVWRVXFKSURJUDPVIROORZHGE\JHQHUDO UHYHQXHVLIQHFHVVDU\
)XQG )LQDQFLDO 6WDWHPHQWV
,QDGGLWLRQWRWKHJRYHUQPHQWZLGHVWDWHPHQWVGHVFULEHGDERYH WKH&LW\DOVR SUHVHQWVFund Financial Statements. 7KHDFFRXQWVRIWKH&LW\DUHRUJDQL]HGRQWKHEDVLVRIIXQGV$ IXQGLVD VHSDUDWHDFFRXQWLQJHQWLW\ZLWKDVHOIEDODQFLQJVHWRIDFFRXQW V(DFKIXQGLVHVWDEOLVKHGIRUWKH SXUSRVH RI DFFRXQWLQJIRUVSHFLILFDFWLYLWLHVLQDFFRUGDQFHZLWKDSSOLFDEO HUHJXODWLRQVUHVWULFWLRQVRUOLPLWDWLRQV7KH&LW\ DFFRXQWVIRULWVRSHUDWLRQVLQJRYHUQPHQWDOSURSULHWDU\DQGILGXFLDU\IXQGVZKLFKLQFOXGHWKHIROORZLQJFDWHJRULHV
*RYHUQPHQWDO)XQGV
*HQHUDO)XQG±7RDFFRXQWIRUUHVRXUFHVWUDGLWLRQDOO\DVVRFLDWHGZLWKJHQHUDOJRYHUQPHQWRSHUDWLRQVRIWKH&LW\ LQFOXGLQJ 0HDVXUH % 7UDQVDFWLRQ WD[DQG0HDVXUH3VDOHVWD[DQG WKH UHODWHG H[SHQGLWXUHV DQG SUH
6XFFHVVRU $JHQF\ ORDQV DQG WKH UHODWHG UHYHQXHV WKDW DUH QRW UHTXLUHG OHJDOO\ RU E\ VRXQGILQDQFLDO PDQDJHPHQWWREHDFFRXQWHGIRULQDQRWKHUIXQG
6SHFLDO5HYHQXH)XQGV±7RDFFRXQWIRUWKHSURFHHGVRIVSHFLILFUHYHQXHVRXUFHVWKDWDUHOHJDOO\UHVWULFWHGWREH H[SHQGHGIRUVSHFLILHGSXUSRVHV
'HEW 6HUYLFH )XQGV ± 7R DFFRXQW IRU WKH VHUYLFLQJ RI ORQJWHUPGHEW QRW EHLQJ ILQDQFHG E\EXVLQHVVW\SH IXQGV
&DSLWDO3URMHFWV)XQGV±7RDFFRXQWIRUFDSLWDORXWOD\VLQFOXGL QJWKHDFTXLVLWLRQDQGFRQVWUXFWLRQRIFDSLWDO LPSURYHPHQWV
3HUPDQHQW)XQGV±7RDFFRXQWIRUDQGUHSRUWUHVRXUFHVWKDWDUH UHVWULFWHGWRWKHH[WHQWWKDWRQO\HDUQLQJVDQG QRWSULQFLSDOPD\EHXVHGIRUSXUSRVHVWKDWVXSSRUWWKHUHSRUW LQJJRYHUQPHQW¶VSURJUDPV²WKDWLVIRUWKH EHQHILWRIWKHJRYHUQPHQWRULWVFLWL]HQU\
47 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
3URSULHWDU\)XQGV
(QWHUSULVH)XQGV±7RDFFRXQWIRURSHUDWLRQVWKDWDUHILQDQFHGVXEVWDQWLDOO\WKURXJKXVHUIHHVDQGDUHRSHUDWHGLQ DPDQQHUVLPLODUWRSULYDWHEXVLQHVVHQWHUSULVHV
,QWHUQDO6HUYLFH)XQGV±7RDFFRXQWIRUWKHILQDQFLQJRIJRRGV DQGVHUYLFHVSURYLGHGE\RQH&LW\GHSDUWPHQWWR RWKHUGHSDUWPHQWVRQDFRVWUHLPEXUVHPHQWEDVLV
)LGXFLDU\)XQGV
&XVWRGLDO)XQGV±7RUHSRUWILGXFLDU\DFWLYLWLHVWKDWDUHQRWKHOGLQDWUXVWRUHTXLYDOHQWDUUDQJHPHQW
3ULYDWH±3XUSRVH7UXVW)XQGV±7RUHSRUWWUXVWDUUDQJHPHQWVXQ GHUZKLFKSULQFLSDODQGLQFRPHEHQHILWRWKHU JRYHUQPHQWDOHQWLWLHV
7KH ILQDQFLDO DFWLYLWLHV RI WKHVH IXQGV DUH H[FOXGHG IURP WKH JRYHUQPHQWZLGH ILQDQFLDOVWDWHPHQWVEXWDUH SUHVHQWHGLQVHSDUDWH)LGXFLDU\)XQGILQDQFLDOVWDWHPHQWV
& %DVLVRI$FFRXQWLQJ
7KH JRYHUQPHQWZLGH SURSULHWDU\ DQG ILGXFLDU\ IXQG ILQDQFLDOVWDWHPHQWV DUH UHSRUWHG XVLQJ WKH HFRQRPLF UHVRXUFHVPHDVXUHPHQWIRFXVDQGWKHIXOODFFUXDOEDVLVRIDFFRXQWLQJ5HYHQXHVDUHUHFRUGHGZKHQHDUQHGDQG H[SHQVHVDUHUHFRUGHGDWWKHWLPHOLDELOLWLHVDUHLQFXUUHGUHJDUGOHVVRIZKHQWKHUHODWHGFDVKIORZVWDNHSODFH
*RYHUQPHQWDO )XQGV
*RYHUQPHQWDO IXQGV DUH XVHG WR UHSRUW WKH PDMRULW\ RI WKH &LW\¶V SURJUDPV7KHVH IXQGV DUH UHSRUWHG LQ WKHFund Financial Statements RQ WKH PRGLILHG DFFUXDO EDVLV RI DFFRXQWLQJ ZLWKD IRFXVRQFXUUHQWILQDQFLDOUHVRXUFHV7KLVEDVLVGLIIHUVIURPW KHDFFUXDOEDVLVRIDFFRXQWLQJXVHGWR UHSRUWWKH JRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVDQGSURSULHWDU\DQGILGXFLDU\IXQGILQDQFLDOVWDWHPHQWV
5HYHQXHV DUH UHFRJQL]HG ZKHQ PHDVXUDEOH DQG DYDLODEOH 7KH &LW\ FRQVLGHUV UHYHQXHV UHSRUWHG LQ WKH JRYHUQPHQWDO IXQGV WR EH DYDLODEOH LI WKH UHYHQXHV DUH FROOHFWHG ZLWKLQ QLQHW\ GD\V DIWHU \HDUHQG7KLV SHULRG LV H[WHQGHG WR RQH \HDU IRU JUDQW SURJUDPV 5HYHQXHV VXVFHSWLEOH WR DFFUXDO LQFOXGH WD[HV LQWHUJRYHUQPHQWDO UHYHQXHV FKDUJHV IRU VHUYLFHV DQGLQWHUHVWUHYHQXH1RQH[FKDQJHWUDQVDFWLRQVLQZKLFK WKH&LW\JLYHVRUUHFHLYHVYDOXHZLWKRXWGLUHFWO\UHFHLYLQJRUJLYLQJHTXDOYDOXHLQH[FKDQJHLQFOXGHWD[HVJUDQWV HQWLWOHPHQWVDQGGRQDWLRQV5HYHQXHIURPJUDQWVHQWLWOHPHQWVDQGGRQDWLRQVLVUHFRJQL]HGLQWKHILVFDO\HDULQ ZKLFKDOOHOLJLELOLW\UHTXLUHPHQWVKDYHEHHQVDWLVILHG
([SHQGLWXUHVDUHUHFRUGHGZKHQWKHUHODWHGIXQGOLDELOLW\LVLQ FXUUHGH[FHSWIRUSULQFLSDODQGLQWHUHVWRQ JHQHUDO ORQJWHUPGHEWFRPSHQVDWHGDEVHQFHVDQGFODLPVSD\DEOHZKLFK DUHUHFRJQL]HGDVH[SHQGLWXUHVWRWKHH[WHQW WKH\KDYHPDWXUHG*RYHUQPHQWDOFDSLWDODVVHWDFTXLVLWLRQVDUHUHSRUWHGDVH[SHQGLWXUHVLQJRYHUQPHQWDOIXQGV 3URFHHGVRIJRYHUQPHQWDOORQJWHUPGHEWDQGDFTXLVLWLRQVXQGHU FDSLWDOOHDVHVDUHUHSRUWHGDVRWKHUILQDQFLQJ VRXUFHV
3URSULHWDU\ )XQGV
7KHSURSULHWDU\IXQGVRIWKH&LW\DUHUHSRUWHGRQWKHDFFUXDO EDVLVRIDFFRXQWLQJLQ WKH Fund Financial Statements2SHUDWLQJUHYHQXHVLQWKHSURSULHWDU\IXQGVDUHWKRVHUHYHQXH VWKDWDUHJHQHUDWHG IURPWKHSULPDU\RSHUDWLRQVRIWKHIXQG$OORWKHUUHYHQXHVDUH UHSRUWHGDVQRQRSHUDWLQJUHYHQXHV2SHUDWLQJ H[SHQVHVDUHWKRVHH[SHQVHVWKDWDUHHVVHQWLDOWRWKHSULPDU\R SHUDWLRQVRIWKHIXQGV $OORWKHUH[SHQVHVDUH UHSRUWHGDVQRQRSHUDWLQJH[SHQVHV
' 0DMRU)XQGV
7KH Fund Financial Statements IRFXVRQWKHLQGLYLGXDO major IXQGVRIWKH&LW\HDFKRIZKLFKLVGLVSOD\HG LQDVHSDUDWHFROXPQDQGWKHDJJUHJDWHRIUHPDLQLQJIXQGVZKL FKDUHODEHOHGDV non-major IXQGVMajor IXQGV DUHGHILQHGDVIXQGVZLWKDVVHWVDQGGHIHUUHGRXWIORZVRIUHVRX UFHVOLDELOLWLHVDQGGHIHUUHGLQIORZVRIUHVRXUFHV UHYHQXHVH[SHQGLWXUHVRUH[SHQVHVHTXDOWRWHQSHUFHQWRIWKH LUIXQGW\SHWRWDODQGILYHSHUFHQWRIWKHJUDQG WRWDORURWKHUIXQGVRIUHSRUWLQJVLJQLILFDQFH
48 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
7KH&LW\UHSRUWVWKHIROORZLQJPDMRUJRYHUQPHQWDOIXQGVLQWKHDFFRPSDQ\LQJFund Financial Statements: *HQHUDO )XQG ±7KLVLVWKH&LW\¶VSULPDU\RSHUDWLQJIXQG,WDFFRXQWVIRUDOO ILQDQFLDOUHVRXUFHVRIWKHJHQHUDO JRYHUQPHQWH[FHSWWKRVHUHTXLUHGWREHDFFRXQWHGIRULQDQRWKHUIXQG
+RXVLQJ$XWKRULW\6SHFLDO5HYHQXH)XQG – LVXVHGWRDFFRXQWIRUPRQLHVUHFHLYHGDQGH[SHQGHGRQKRXVLQJ DVVLVWDQFHWRORZDQGPRGHUDWHLQFRPHIDPLOLHVDQGWKHDVVHWVD QGOLDELOLWLHVDVVXPHGIURPWKH+RXVLQJ)XQG RIWKH)RUPHU5HGHYHORSPHQW$JHQF\XSRQWKHGLVVROXWLRQDVRI)HEUXDU\)XQGVDUHSURYLGHGE\UHFHLSWV IURPWKH)HGHUDO6HFWLRQ+RXVLQJDQG8UEDQ'HYHORSPHQW +8'
SURJUDPV
0DUH ,VODQG &RQYHUVLRQ &DSLWDO 3URMHFWV )XQG±DFFRXQWVIRUPRQLHVUHFHLYHGIURPIHGHUDOJUDQWVZKLFKDUH XVHGIRUDFWLYLWLHVUHODWLQJWRWKHFRQYHUVLRQRIWKH0DUH,VODQG1DYDO6KLS\DUGWRFLYLOLDQXVH
7KH&LW\UHSRUWVDOOLWVHQWHUSULVHIXQGVDVPDMRUIXQGVLQWKHDFFRPSDQ\LQJFund Financial Statements
:DWHU)XQG– LVXVHGWRDFFRXQWIRUWKHSURGXFWLRQDQGGLVWULEXWLRQRIZDWHUWRUHVLGHQWVDQGEXVLQHVVHVORFDWHG ZLWKLQWKH&LW\:DWHUVHUYLFHLVDOVRSURYLGHGWR/DNHV'LVWUL FWDQG7UDYLV$LU)RUFH%DVHFXVWRPHUVRXWVLGH WKH&LW\OLPLWV
0DULQD)XQG– LVXVHGWRDFFRXQWIRUWKHRSHUDWLRQVLPSURYHPHQWDQGPDQDJHPHQWRIWKH&LW\PDULQDRSHUDWLRQV
*ROI)XQG±LVXVHGWRDFFRXQWIRUWKHFDSLWDODVVHWVRIWKH&LW\¶VPXQLFLSDOJROIFRXUVHDQGWKHFRXUVHRSHUDWRU¶V SDVVWKURXJKUHYHQXHVWKDWVHUYLFHWKH&LW\GHEWXVHGWRDFTXLUHDQGLPSURYHWKHDVVHWVRIWKH IXQG
9DOOHMR 6WDWLRQ 3DUNLQJ )XQG– LVXVHGWRDFFRXQWIRUWKHRSHUDWLRQVPDLQWHQDQFHDQGPDQDJHPH QWRI WKH 9DOOHMR6WDWLRQ3DUNLQJ6WUXFWXUH
)LEHU2SWLF)XQG±LVXVHGWRDFFRXQWIRUWKHRSHUDWLRQVPDLQWHQDQFHDQGGLVWU LEXWLRQRIEDQGZLGWKDQGUHWDLO LQWHUQHWVHUYLFHVWKURXJKRXWWKH&LW\¶VILEHURSWLFQHWZRUN
7KH&LW\DOVRUHSRUWVWKHIROORZLQJIXQGW\SHV
,QWHUQDO6HUYLFH)XQGV
7KHVHIXQGVDFFRXQWIRUIOHHWPDLQWHQDQFHDQGUHSODFHPHQWZRUNHUV FRPSHQVDWLRQDQG
JHQHUDOOLDELOLW\VHOILQVXUDQFHSURJUDPVSD\UROODQGUHWLUHH KHDOWKEHQHILWV DOO RI ZKLFK DUH SURYLGHG WR RWKHU GHSDUWPHQWV RQ D FRVW UHLPEXUVHPHQWEDVLV5HYHQXHVDUHUHFRJQL]HGEDVHGRQF\FOHELOOLQJVUHQGHUHGWR FXVWRPHUV
)LGXFLDU\ )XQGV
7UXVWIXQGVDFFRXQWIRUDVVHWVKHOGE\WKH&LW\DVDQDJHQWIRU YDULRXVIXQFWLRQV&XVWRGLDO IXQGVDUHXVHGWRDFFRXQWIRUDVVHWVKHOGE\WKH&LW\DVDILGX FLDU\IRUWKHERQGKROGHUVRIWKHLPSURYHPHQW DQGDVVHVVPHQWODQGEDVHGGHEWGLVWULFWVZLWKLQWKH&LW\7KH6 XFFHVVRU$JHQF\WRWKH5HGHYHORSPHQW$JHQF\ 3ULYDWH3XUSRVH7UXVW)XQGDFFRXQWVIRUWKHDFFXPXODWLRQRIUHV RXUFHVWREHXVHGIRUSD\PHQWVDWDSSURSULDWH DPRXQWVDQGWLPHVLQWKHIXWXUH
( &DVKDQG&DVK(TXLYDOHQWV
)RUSXUSRVHVRIWKH6WDWHPHQWRI&DVK)ORZVFDVKHTXLYDOHQWVD UHGHILQHGDVFDVKDQGLQYHVWPHQWVZKLFKDUH FRQVLGHUHGWREHOLTXLGDVVHWVIRUSXUSRVHVRIPHDVXULQJFDVKIORZV&DVKDQGLQYHVWPHQWRIDOOIXQGVDUHSRROHG ZLWKWKH&LW\¶VSRROHGFDVKDQGLQYHVWPHQWVDQGDUHFRQVLGHUHG FDVKDQGFDVKHTXLYDOHQWVEHFDXVHWKHSRROLV XVHGHVVHQWLDOO\DVDGHPDQGGHSRVLWDFFRXQWIURPWKHVWDQGSRLQWRIWKHIXQGV,QYHVWPHQWVDUHUHFRUGHGDWIDLU YDOXH
FKDQJHVLQIDLUYDOXHDUHLQFOXGHGZLWKLQYHVWPHQWLQFRPHLQWKHRSHUDWLQJVWDWHPHQWV 49 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
) 0DWHULDOV3DUWVDQG6XSSOLHV
&LW\PDWHULDOVSDUWVDQGVXSSOLHVDUHKHOGIRUFRQVXPSWLRQDQG DUHYDOXHGDWDYHUDJHFRVW (QWHUSULVHIXQG VXSSOLHVFRQVLVWRIPDWHULDOVDQGVXSSOLHVZKLFKDUHKHOGIRUI XWXUHXVH*HQHUDO)XQGVXSSOLHVDUHUHFRUGHG DVDQH[SHQGLWXUHDWWKHWLPHLQGLYLGXDOVXSSO\LWHPVDUHFRQVXPHG
9):'VXSSOLHVLQYHQWRULHVDUHYDOXHGDWFRVWDQGIROORZDILUVW LQILUVWRXW ),)2
IORZ7KLVIORZDSSUR[LPDWHV
PDUNHWEHFDXVHHQGLQJLQYHQWRU\FRQVLVWVRIWKHPRVWUHFHQWLWH PVSXUFKDVHG,QYHQWRULHV DUHUHFRUGHGDV H[SHQVHVZKHQFRQVXPHGUDWKHUWKDQZKHQSXUFKDVHG
* /DQG+HOGIRU5HGHYHORSPHQW
/DQGKHOGIRUUHGHYHORSPHQWLVVWDWHGDWWKHORZHURIKLVWRULFD OFRVWRUQHWUHDOL]DEOHYDOXHLIHVWLPDEOH 1HW UHDOL]DEOHYDOXHHTXDOVWKHDJUHHGXSRQVDOHVSULFHZKHQDGLVS RVLWLRQDJUHHPHQWKDVEHHQUHDFKHGZLWKD GHYHORSHU
+ 3UHSDLGV
&HUWDLQSD\PHQWVWRYHQGRUVUHIOHFWFRVWVDSSOLFDEOHWRIXWXUH DFFRXQWLQJSHULRGVDQGDUHUHFRUGHGDVSUHSDLG LWHPVLQERWKWKHJRYHUQPHQWZLGHDQGIXQGILQDQFLDOVWDWHPHQWV 7KHFRVWRISUHSDLGLWHPVLV UHFRUGHGDV H[SHQGLWXUHVH[SHQVHVZKHQFRQVXPHGUDWKHUWKDQZKHQSXUFKDVHG
, 'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV
,QDGGLWLRQWRDVVHWVWKHVWDWHPHQWRIQHWSRVLWLRQRUEDODQFHVKHHWUHSRUWVDVHSDUDWHVHFWLRQIRUGHIHUUHGRXWIORZV RIUHVRXUFHV7KLVVHSDUDWHILQDQFLDOVWDWHPHQWHOHPHQWdeferred outflows of resourcesUHSUHVHQWVDFRQVXPSWLRQ RI QHW DVVHWV WKDW DSSOLHV WR D IXWXUH SHULRG
V
DQG VR ZLOOnot EH UHFRJQL]HG DV DQ RXWIORZ RI UHVRXUFHV
H[SHQVHH[SHQGLWXUH
XQWLOWKHQ7KH&LW\KDVWKUHHW\SHVRIL WHPVWKDWTXDOLI\IRUUHSRUWLQJLQWKLVFDWHJRU\$Q XQDPRUWL]HGORVVRQUHIXQGLQJRIGHEWUHVXOWVIURPWKHGLIIHUHQ FHLQWKHFDUU\LQJYDOXHRIUHIXQGHGGHEWDQGLWV UHDFTXLVLWLRQSULFH7KLVDPRXQWLVGHIHUUHGDQGDPRUWL]HGRYHU WKHVKRUWHURIWKHOLIHRIWKHUHIXQGHGRUUHIXQGLQJ GHEW7KH&LW\DOVRKDVGHIHUUHGRXWIORZVDQGLQIORZVRIUHVRXU FHVUHODWHGWRSHQVLRQVDQG23(%DVGLVFXVVHGLQ 1RWHDQGUHVSHFWLYHO\
,QDGGLWLRQWROLDELOLWLHVWKHVWDWHPHQWRIQHWSRVLWLRQRUED ODQFHVKHHWUHSRUWVDVHSDUDWHVHFWLRQIRUGHIHUUHG LQIORZVRIUHVRXUFHV7KLVVHSDUDWHILQDQFLDOVWDWHPHQWHOHPHQW deferred inflows of resources, UHSUHVHQWVDQ DFTXLVLWLRQRIQHWDVVHWVWKDWDSSOLHVWRDIXWXUHSHULRG V
DQGVRZLOOnot EHUHFRJQL]HGDVDQLQIORZRIUHVRXUFHV
UHYHQXH
XQWLOWKDWWLPH7KH&LW\KDVRQHW\SHRILWHPZKLFK DULVHVRQO\XQGHUWKHPRGLILHGDFFUXDOEDVLVRI DFFRXQWLQJWKDWTXDOLILHVIRUUHSRUWLQJLQWKLVFDWHJRU\$FFRU GLQJO\WKHLWHP unavailable revenue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
- 3URSHUW\7D[5HYHQXHV
6RODQR&RXQW\DVVHVVHVSURSHUWLHVDQGELOOVFROOHFWVDQGGLVW ULEXWHVSURSHUW\WD[HVWRWKH&LW\7KH&RXQW\ UHPLWVWKHHQWLUHDPRXQWOHYLHGDQGKDQGOHVDOOGHOLQTXHQFLHV UHWDLQLQJLQWHUHVWDQGSHQDOWLHV6HFXUHGDQG XQVHFXUHGSURSHUW\WD[HVDUHOHYLHGRQ-DQXDU\RIWKHSUHFHGL QJILVFDO\HDU 3URSHUW\WD[ UHYHQXHVDUH UHFRJQL]HGE\WKH&LW\LQWKHILVFDO\HDUWKH\DUHDVVHVVHGSU RYLGHGWKH\EHFRPHDYDLODEOHDVGHILQHGDERYH
50 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
6HFXUHG SURSHUW\ WD[ LV GXH LQ WZR LQVWDOOPHQWV RQ 1RYHPEHU DQG 0DUFK DQG EHFRPHV D OLHQ RQ -DQXDU\,WEHFRPHVGHOLQTXHQWDIWHU'HFHPEHUDQG$SULOUHVSHFWLYHO\8QVHFXUHGSURSHUW\WD[LVGXHRQ -XO\DQGEHFRPHVGHOLQTXHQWRQ$XJXVW7KHWHUP³XQVHFXUHG´UHIHUVWRWD[HVRQSHUVRQDOSURSHUW\RWKHUWKDQ UHDOHVWDWHODQGDQGEXLOGLQJV7KHVHWD[HVDUHVHFXUHGE\OLHQVRQWKHSURSHUW\EHLQJWD[HG
. (VWLPDWHVDQG$VVXPSWLRQV
7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV *$$3
UHTXLUHV
PDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDWDIIHFWWKHUH SRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVDQG GLVFORVXUHRIFRQWLQJHQWDVVHWVDQGOLDELOLWLHVDWWKHGDWHRIWKHILQDQFLDOVWDWHPHQWVDQGWKHUHSRUWHGDPRXQWVRI UHYHQXHVDQGH[SHQVHVGXULQJWKHUHSRUWLQJSHULRG$FWXDOUHVXOWVFRXOGGLIIHUIURPWKRVHHVWLPDWHV
/ )DLU9DOXH0HDVXUHPHQWV
)DLUYDOXHLVGHILQHGDVWKHSULFHWKDWZRXOGEHUHFHLYHGWRVH OODQDVVHWRUSDLGWRWUDQVIHUDOLDELOLW\LQDQRUGHUO\ WUDQVDFWLRQ EHWZHHQ PDUNHW SDUWLFLSDQWV DW WKH PHDVXUHPHQW GDWH 7KH &LW\ FDWHJRUL]HV LWV IDLU YDOXH PHDVXUHPHQWVZLWKLQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHGE\JHQ HUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV7KHIDLU YDOXHKLHUDUFK\FDWHJRUL]HVWKHLQSXWVWRYDOXDWLRQWHFKQLTXHV XVHGWRPHDVXUHIDLUYDOXHLQWRWKUHHOHYHOVEDVHG RQWKHH[WHQWWRZKLFKLQSXWVXVHGLQPHDVXULQJIDLUYDOXHDUHREVHUYDEOHLQWKHPDUNHW
/HYHOLQSXWVDUHTXRWHGSULFHV
XQDGMXVWHG
LQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHV /HYHOLQSXWVDUHLQSXWV±RWKHUWKDQTXRWHGSULFHVLQFOXGHGZ LWKLQOHYHO±WKDWDUHREVHUYDEOHIRUDQDVVHWRU OLDELOLW\HLWKHUGLUHFWO\RULQGLUHFWO\
/HYHOLQSXWVDUHXQREVHUYDEOHLQSXWVIRUDQDVVHWRUOLDELOLW\
,IWKHIDLUYDOXHRIDQDVVHWRUOLDELOLW\LVPHDVXUHGXVLQJLQSXWVIURPPRUHWKDQRQHOHYHORIWKHIDLUYDOXHKLHUDUFK\ WKHPHDVXUHPHQWLVFRQVLGHUHGWREHEDVHGRQWKHORZHVWSULRULW \OHYHOLQSXWWKDWLVVLJQLILFDQW WRWKHHQWLUH PHDVXUHPHQW
0 /HDVHV
/HVVHH
7KH&LW\LVDOHVVHHIRUQRQFDQFHOODEOHOHDVHVRIHTXLSPHQW7KH&LW\UHFRJQL]HVDOHDVHOLDELOLW\DQG DQLQWDQJLEOHULJKW ǦWRǦXVHOHDVHDVVHW
OHDVHDVVHW
LQWKHILQDQFLDOVWDWHPHQWV7KH &LW\UHFRJQL]HVOHDVH OLDELOLWLHVZLWKDQLQLWLDOLQGLYLGXDOYDOXHRIRUPRUH
$WWKHFRPPHQFHPHQWRIDOHDVHWKH&LW\LQLWLDOO\PHDVXUHVWKHOHDVHOLDELOLW\DWWKHSUHVHQWYDOXHRISD\PHQWV H[SHFWHGWREHPDGHGXULQJWKHOHDVHWHUP6XEVHTXHQWO\WKHOHDVHOLDELOLW\LVUHGXFHGE\WKHSULQFLSDOSRUWLRQ RIOHDVHSD\PHQWVPDGH7KHOHDVHDVVHWLVLQLWLDOO\PHDVXUHG DVWKHLQLWLDODPRXQWRIWKHOHDVHOLDELOLW\ DGMXVWHGIRUOHDVHSD\PHQWVPDGHDWRUEHIRUHWKHOHDVHFRPPHQFHPHQWGDWHSOXVFHUWDLQLQLWLDOGLUHFWFRVWV 6XEVHTXHQWO\WKHULJKWWRXVHOHDVHDVVHWLVDPRUWL]HGRQDVW UDLJKW ǦOLQHEDVLVRYHUWKHVKRUWHURIWKHOHDVH
WHUPRULWVXVHIXOOLIH
.H\HVWLPDWHVDQGMXGJPHQWVUHODWHGWROHDVHVLQFOXGHKRZWKH&LW\GHWHUPLQHV
WKHGLVFRXQWUDWHLWXVHVWR
GLVFRXQWWKHH[SHFWHGOHDVHSD\PHQWVWRSUHVHQWYDOXH
OHDVHWHUPDQG
OHDVHSD\PHQWV
x 7KH&LW\XVHVWKHLQWHUHVWUDWHFKDUJHGE\WKHOHVVRUDVWKHG LVFRXQWUDWH:KHQWKHLQWHUHVWUDWHFKDUJHG E\WKHOHVVRULVQRWSURYLGHGWKH&LW\JHQHUDOO\XVHVLWVHVWL PDWHGLQFUHPHQWDOERUURZLQJUDWHDVWKH GLVFRXQWUDWHIRUOHDVHV
x 7KH OHDVH WHUP LQFOXGHV WKH QRQFDQFHOODEOH SHULRG RI WKH OHDVH /HDVH SD\PHQWV LQFOXGHG LQ WKH PHDVXUHPHQWRIWKHOHDVHOLDELOLW\DUHFRPSRVHGRIIL[HGSD\PHQWVDQGSXUFKDVHRSWLRQSULFHWKDWWKH&LW\ LVUHDVRQDEO\FHUWDLQWRH[HUFLVH
51 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
7KH&LW\PRQLWRUVFKDQJHVLQFLUFXPVWDQFHVWKDWZRXOGUHTXLUHD UHPHDVXUHPHQWRILWVOHDVHDQGZLOO UHPHDVXUHWKHOHDVHDVVHWDQGOL DELOLW\LIFHUWDLQFKDQJHVRFFX UWKDWDUHH[SHFWHGWRVLJQLILFDQWO\DIIHFWWKH DPRXQWRIWKHOHDVHOLDELOLW\
/HDVHDVVHWVDUHUHSRUWHGZLWKRWKHUFDSLWDODVVHWVDQGOHDVHOLDELOLWLHVDUHUHSRUWHGVHSDUDWHO\RQWKHVWDWHPHQW RIQHWSRVLWLRQ
/HVVRU
7KH&LW\LVDOHVVRUIRUDQRQFDQFHOODEOHOHDVHVRIYDULRXV&LW\IDFLOLWLHV7KH&LW\UHFRJQL]HVDOHDVH UHFHLYDEOHDQGDGHIHUUHGLQIORZRIUHVRXUFHVLQWKHILQDQFLDOVWDWHPHQWV
$WWKHFRPPHQFHPHQWRIDOHDVHWKH&LW\LQLWLDOO\PHDVXUHVWKH OHDVHUHFHLYDEOHDWWKHSUHVHQWYDOXHRI SD\PHQWVH[SHFWHGWREHUHFHLYHGGXULQJWKHOHDVHWHUP6XEVHTXHQWO\WKHOHDVHUHFHLYDEOHLVUHGXFHGE\WKH SULQFLSDOSRUWLRQRIOHDVHSD\PHQWVUHFHLYHG7KHGHIHUUHGLQIORZRIUHVRXUFHVLVLQLWLDOO\PHDVXUHGDVWKHLQLWLDO DPRXQWRIWKHOHDVHUHFHLYDEOHDGMXVWHGIRUOHDVHSD\PHQWVUHFHLYHGDWRUEHIRUHWKHOHDVHFRPPHQFHPHQW GDWH6XEVHTXHQWO\WKHGHIHUUHGLQIORZRIUHVRXUFHVLVUHFRJQL]HGDVUHYHQXHRYHUWKHOLIHRIWKHOHDVHWHUP
.H\HVWLPDWHVDQGMXGJPHQWVLQFOXGHKRZWKH&LW\GHWHUPLQHV
WKHGLVFRXQWUDWHLWXVHVWRGLVFRXQWWKH
H[SHFWHGOHDVHUHFHLSWVWRSUHVHQWYDOXH
OHDVHWHUPDQG
OHDVHUHFHLSWV
x 7KH&LW\XVHVLWVHVWLPDWHGLQFUHPHQWDOERUURZLQJUDWHDVWKHGLVFRXQWUDWHIRUOHDVHV x 7KH OHDVH WHUP LQFOXGHV WKH QRQFDQFHOODEOH SHULRG RI WKH OHDVH /HDVH UHFHLSWV LQFOXGHG LQ WKH PHDVXUHPHQWRIWKHOHDVHUHFHLYDEOHLVFRPSRVHGRIIL[HGSD\PHQWVIURPWKHOHVVHH
1 6XEVFULSWLRQ%DVHG,QIRUPDWLRQ7HFKQRORJ\$UUDQJHPHQWV
7KH&LW\RI9DOOHMRLVDVXEVFULEHUIRUDQRQFDQFHOODEOHVXEVFU LSWLRQRILQIRUPDWLRQWHFKQRORJ\VHUYLFHV7KH &LW\ RI 9DOOHMR UHFRJQL]HV D VXEVFULSWLRQ OLDELOLW\ DQG DQ LQWD QJLEOH ULJKWǦWRǦXVH VXEVFULSWLRQ DVVHW
VXEVFULSWLRQDVVHW
LQWKHJRYHUQPHQW ǦZLGHILQDQFLDOVWDWHPHQWV7KH&LW\RI9DOOHMRUHFRJQL]HVVXEVF ULSWLRQ OLDELOLWLHVZLWKDQLQLWLDOLQGLYLGXDOYDOXHRIRUPRUH
$WWKHFRPPHQFHPHQWRIDVXEVFULSWLRQWKH&LW\RI9DOOHMRLQLWLDOO\PHDVXUHVWKHVXEVFULSWLRQOLDELOLW\DWWKHSUHVHQW YDOXHRISD\PHQWVH[SHFWHGWREHPDGHGXULQJWKHVXEVFULSWLRQW HUP6XEVHTXHQWO\WKHVXEVFULSWLRQOLDELOLW\LV UHGXFHGE\WKHSULQFLSDOSRUWLRQRIVXEVFULSWLRQSD\PHQWVPDGH7KHVXEVFULSWLRQDVVHWLVLQLWLDOO\PHDVXUHGDVWKH LQLWLDODPRXQWRIWKHVXEVFULSWLRQOLDELOLW\DGMXVWHGIRUVXEV FULSWLRQSD\PHQWVPDGHDWRUEHIRUHWKHVXEVFULSWLRQ FRPPHQFHPHQWGDWHSOXVFHUWDLQLQLWLDOGLUHFWFRVWV6XEVHTXHQ WO\WKHVXEVFULSWLRQDVVHWLVDPRUWL]HGRQD VWUDLJKWǦOLQHEDVLVRYHULWVXVHIXOOLIH.H\HVWLPDWHVDQGMXGJPHQWVUH ODWHGWRVXEVFULSWLRQVLQFOXGHKRZWKH &LW\RI9DOOHMRGHWHUPLQHV
WKHGLVFRXQWUDWHLWXVHVWRGLV FRXQWWKHH[SHFWHGVXEVFULSWLRQSD\PHQWVWRSUHVHQW YDOXH
OHDVHWHUPDQG
VXEVFULSWLRQSD\PHQWV
7KH&LW\RI9DOOHMRXVHVWKHLQWHUHVWUDWHFKDUJHGE\WKHYHQGRUDVWKHGLVFRXQWUDWH:KHQWKHLQWHUHVWUDWHFKDUJHG E\WKHYHQGRULVQRWSURYLGHGWKH&LW\RI9DOOHMRJHQHUDOO\XV HVLWVHVWLPDWHGLQFUHPHQWDOERUURZLQJUDWHDVWKH GLVFRXQWUDWHIRUVXEVFULSWLRQV
7KHVXEVFULSWLRQWHUPLQFOXGHVWKHQRQFDQFHOODEOHSHULRGRIWKH VXEVFULSWLRQ6XEVFULSWLRQSD\PHQWVLQFOXGHGLQ WKHPHDVXUHPHQWRIWKHVXEVFULSWLRQOLDELOLW\DUHFRPSRVHGRIIL[HGSD\PHQWVWKDWWKH&LW\RI9DOOHMRLVUHDVRQDEO\ FHUWDLQWRH[HUFLVH
7KH&LW\RI9DOOHMRPRQLWRUVFKDQJHVLQFLUFXPVWDQFHVWKDWZRXOGUHTXLUHDUHPHDVXUHPHQWRILWVVXEVFULSWLRQVDQG ZLOOUHPHDVXUHWKHVXEVFULSWLRQDVVHWDQGOLDELOLW\LIFHUWDLQ FKDQJHVRFFXUWKDWDUHH[SHFWHGWRVLJQLILFDQWO\DIIHFW WKHDPRXQWRIWKHVXEVFULSWLRQOLDELOLW\
6XEVFULSWLRQDVVHWVDUHUHSRUWHGZLWKRWKHUFDSLWDODVVHWVDQGVXEVFULSWLRQOLDELOLWLHVDUHUHSRUWHGVHSDUDWHO\RQWKH VWDWHPHQWRIQHWSRVLWLRQ
52 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
2 1HZ*$6%3URQRXQFHPHQWV(IIHFWLYHGXULQJ)LVFDO<HDU
7KHIROORZLQJ*RYHUQPHQW$FFRXQWLQJ6WDQGDUGV%RDUG
*$6%
SURQRXQFHPHQWVZHUHDGRSWHGIRUWKHILVFDO\HDU
HQGHG-XQH
1. GASB Statement No. 91, Conduit Debt Obligations
7KHUHTXLUHPHQWVRIWKLV6WDWHPHQWLPSURYHVILQDQFLDOUHSRUWLQJ E\HOLPLQDWLQJWKHH[LVWLQJRSWLRQIRULVVXHUVWR UHSRUWFRQGXLWGHEWREOLJDWLRQVDVWKHLURZQOLDELOLWLHVWKHUHE\HQGLQJVLJQLILFDQWGLYHUVLW\LQSUDFWLFH7KHFODULILHG GHILQLWLRQUHVROYHVVWDNHKROGHUV¶XQFHUWDLQW\DVWRZKHWKHUDJ LYHQILQDQFLQJLVLQIDFWDFRQGXLWGHEWREOLJDWLRQ 5HTXLULQJLVVXHUVWRUHFRJQL]HOLDELOLWLHVDVVRFLDWHGZLWKDGGL WLRQDOFRPPLWPHQWVH[WHQGHGE\LVVXHUVDQGWR UHFRJQL]HDVVHWVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRF HUWDLQDUUDQJHPHQWVDVVRFLDWHGZLWKFRQGXLWGHEW REOLJDWLRQVDOVRHOLPLQDWHVGLYHUVLW\WKHUHE\LPSURYLQJFRPSDU DELOLW\LQUHSRUWLQJE\LVVXHUV5HYLVHGGLVFORVXUH UHTXLUHPHQWVSURYLGHVILQDQFLDOVWDWHPHQWXVHUVZLWKEHWWHULQIRUPDWLRQUHJDUGLQJWKHFRPPLWPHQWVLVVXHUVH[WHQG DQGWKHOLNHOLKRRGWKDWWKH\ZLOOIXOILOOWKRVHFRPPLWPHQWV7KDWLQIRUPDWLRQLQIRUPVXVHUVRIWKHSRWHQWLDOLPSDFWRI VXFKFRPPLWPHQWVRQWKHILQDQFLDOUHVRXUFHVRILVVXHUVDQGKHOS XVHUVDVVHVVLVVXHUV¶UROHVLQFRQGXLWGHEW REOLJDWLRQV
2. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
7KHUHTXLUHPHQWVRIWKLV6WDWHPHQWLPSURYHVILQDQFLDOUHSRUWLQJE\HVWDEOLVKLQJWKHGHILQLWLRQVRI333VDQG$3$V DQGSURYLGHVXQLIRUPJXLGDQFHRQDFFRXQWLQJDQGILQDQFLDOUHSRU WLQJIRUWUDQVDFWLRQVWKDWPHHWWKRVHGHILQLWLRQV 7KDWXQLIRUPJXLGDQFHSURYLGHVPRUHUHOHYDQWDQGUHOLDEOHLQIRU PDWLRQIRUILQDQFLDOVWDWHPHQWXVHUVDQGFUHDWH JUHDWHUFRQVLVWHQF\LQSUDFWLFH7KLV6WDWHPHQWHQKDQFHVWKHGH FLVLRQXVHIXOQHVVRIDJRYHUQPHQW¶VILQDQFLDO VWDWHPHQWVE\UHTXLULQJJRYHUQPHQWVWRUHSRUWDVVHWVDQGOLDELO LWLHVUHODWHGWR333VFRQVLVWHQWO\DQGGLVFORVH LPSRUWDQWLQIRUPDWLRQDERXW333WUDQVDFWLRQV7KHUHTXLUHGGLVFORVXUHVDOORZVXVHUVWRXQGHUVWDQGWKHVFDOHDQG LPSRUWDQWDVSHFWVRIDJRYHUQPHQW¶V333VDQGHYDOXDWHDJRYHUQP HQW¶VIXWXUHREOLJDWLRQVDQGDVVHWVUHVXOWLQJ IURP333V
3. GASB Statement No. 96, Subscription-Based Information Technology Arrangements 7KHUHTXLUHPHQWVRIWKLV6WDWHPHQWLPSURYHVILQDQFLDOUHSRUWLQJ E\HVWDEOLVKLQJDGHILQLWLRQIRU6%,7$VDQG SURYLGLQJXQLIRUPJXLGDQFHIRUDFFRXQWLQJDQGILQDQFLDOUHSRUWL QJIRUWUDQVDFWLRQVWKDWPHHWWKDWGHILQLWLRQ7KDW GHILQLWLRQDQGXQLIRUPJXLGDQFHUHVXOWVLQJUHDWHUFRQVLVWHQF\LQSUDFWLFH(VWDEOLVKLQJWKHFDSLWDOL]DWLRQFULWHULDIRU LPSOHPHQWDWLRQFRVWVDOVRUHGXFHVGLYHUVLW\DQGLPSURYHFRPSDUDELOLW\LQILQDQFLDOUHSRUWLQJE\JRYHUQPHQWV7KLV 6WDWHPHQWDOVRHQKDQFHVWKHUHOHYDQFHDQGUHOLDELOLW\RIDJRYH UQPHQW¶VILQDQFLDOVWDWHPHQWVE\UHTXLULQJD JRYHUQPHQWWRUHSRUWDVXEVFULSWLRQDVVHWDQGVXEVFULSWLRQOLDELOLW\IRUD6%,7$DQGWRGLVFORVHHVVHQWLDOLQIRUPDWLRQ DERXW WKH DUUDQJHPHQW 7KH GLVFORVXUHVDOORZVXVHUV WR XQGHUVWDQG WKHVFDOHDQG LPSRUWDQW DVSHFWV RI D JRYHUQPHQW¶V6%,7$DFWLYLWLHVDQGHYDOXDWHDJRYHUQPHQW¶VREOLJDWLRQVDQGDVVHWVUHVXOWLQJIURP6%,7$V
4. GASB Statement No. 100, Accounting Changes and Error Corrections
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
53 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6
&217,18('
3 %XGJHWLQJ3URFHGXUHV
7KH&LW\IROORZVWKHVHSURFHGXUHVLQHVWDEOLVKLQJWKHEXGJHWDU\GDWDUHIOHFWHGLQWKHILQDQFLDOVWDWHPHQWV
7KH&LW\&KDUWHUUHTXLUHVWKH&LW\0DQDJHUWRVXEPLWWRWKH&LW\&RXQFLODSURSRVHGRSHUDWLQJEXGJHWE\0D\ IRUWKHILVFDO\HDUFRPPHQFLQJWKHIROORZLQJ-XO\7KHRSHUDW LQJEXGJHWLQFOXGHVSURSRVHGH[SHQGLWXUHVDQG WKHILQDQFLQJVRXUFHVIRUDOOIXQGV3XEOLFKHDULQJVDUHFRQGXFWHGWRREWDLQWD[SD\HUFRPPHQWV7KHEXGJHWLVOHJDOO\ HQDFWHGWKURXJKSDVVDJHRIDUHVROXWLRQ$OODSSURSULDWLRQVODSVHDWILVFDO\HDUHQGH[FHSWFDSLWDODSSURSULDWLRQV ZKLFKUHPDLQLQHIIHFWXQWLOWKHSURMHFWLVFRPSOHWHGRUPRGLILHG7KH(PHUJHQF\'LVDVWHU)XQG GLGQRWDGRSW
DEXGJHWIRUWKHILVFDO\HDUHQGHG-XQH
/HYHORI%XGJHWDU\&RQWURO%XGJHWDU\FRQWUROLVHVWDEOLVKHGDWWKHIROORZLQJOHYHOV D
*HQHUDO)XQG±'HSDUWPHQW
OHYHO
E
2WKHU )XQGV ± )XQG OHYHO 7KH &LW\ 0DQDJHU PD\ DXWKRUL]H OLQH LWHP EXGJHW WUDQVIHUV ZLWKLQ D *HQHUDO)XQGGHSDUWPHQWRUZLWKLQDIXQGRWKHUWKDQWKH*HQHUD O)XQG
&DSLWDO3URMHFWV)XQGV7KH&LW\GRHVQRWDGRSWDQQXDOEXGJH WVIRULWV&DSLWDO3URMHFWV)XQGV&DSLWDO3URMHFW EXGJHWVDQGIXQGLQJDUHDSSURYHGE\WKH&LW\&RXQFLODVDPXOWL\HDUEXGJHWRQDSURMHFWE\SURMHFWEDVLVWRFRYHU WKHWRWDOHVWLPDWHGFRVWVRIDOOSKDVHVRIVSHFLILFSURMHFWVWKDWVSDQVRYHUVHYHUDOILVFDO\HDUV
%XGJHW$PHQGPHQWV&LW\&RXQFLODXWKRUL]DWLRQLVUHTXLUHGWRW UDQVIHUDSSURSULDWLRQVEHWZHHQ*HQHUDO)XQG GHSDUWPHQWVRUEHWZHHQIXQGV&LW\&RXQFLODXWKRUL]DWLRQLVDO VRUHTXLUHGWRHVWDEOLVKRUDPHQGFDSLWDOSURMHFW EXGJHWV7KH%XGJHWPD\EHDPHQGHGDWVXFKWLPHVDVWKH&LW\&R XQFLOPD\GHHPQHFHVVDU\LQDFFRUGDQFH ZLWKWKHUHTXLUHPHQWVDQGSURFHGXUHVFRQWDLQHGLQWKH&LW\&KDUWHUDQG0XQLFLSDO&RGH
%XGJHWVDUHDGRSWHGRQDEDVLVFRQVLVWHQWZLWK*HQHUDOO\$FFHSWHG$FFRXQWLQJ3ULQFLSOHV%XGJHWDU\FRPSDULVRQV SUHVHQWHGDUHRQWKLVEXGJHWDU\EDVLVDQGUHIOHFWDSSOLFDEOHDP HQGPHQWVDQGUHYLVLRQV
([SHQGLWXUHVLQ([FHVVRI%XGJHW
7KH*HQHUDO)XQGKDGH[SHQGLWXUHVLQH[FHVVGHSDUWPHQWEXGJHWV IRUWKHIROORZLQJGHSDUWPHQWVIRULQIRUPDWLRQ WHFKQRORJ\E\
FDSLWDORXWOD\E\DQGGHEWVHUY LFHE\7KHWRWDOH[SHQGLWXUHVGLGQRW H[FHHGWKHWRWDOEXGJHWHGH[SHQGLWXUHVZLWKLQWKH*HQHUDO)XQG
7KHIROORZLQJIXQGVKDGIXQGH[SHQGLWXUHVLQH[FHVVRIEXGJHWDVIROORZV
0DUH,VODQG&)'$
6WDWH
)XQG
-XVWLFH$VVLVWDQFH*UDQW)XQG
7KHH[FHVVH[SHQGLWXUHVZHUHFRYHUHGE\DFFXPXODWHGIXQGEDODQFH
54 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
$ $GPLQLVWUDWLRQ
&DVKDQG,QYHVWPHQWVDUHDGPLQLVWHUHGVHSDUDWHO\E\WKH&LW\DQ GE\WKHGLVFUHWHFRPSRQHQWXQLWWKH9):' 7KHUHVSHFWLYHFDVKDQGLQYHVWPHQWSRVLWLRQVDVRI-XQHIRUHDFKRIWKHVHOHJDOHQWLWLHVLVDVIROORZV
% &ODVVLILFDWLRQ
&DVKDQGLQYHVWPHQWVDUHFODVVLILHGLQWKHILQDQFLDOVWDWHPHQWVDVVKRZQEHORZ
&LW\
)LGXFLDU\
)XQGV 6XEWRWDO &RPSRQHQW8QLW 7RWDO
&DVKRQ+DQG
'HSRVLWV ,QYHVWPHQWV
3ULPDU\*RYHUQPHQW
3ULPDU\*RYHUQPHQW
7KHVHEDODQFHVDUHKHOGE\WKLUGSDUW\ILVFDODJHQWVSXUVXDQWWRGHEWFRYHQDQWVRURWKHUDJUHHPHQWV 5HVWULFWHG,QYHVWPHQWV
KHOGE\ILVFDODJHQWV
7RWDO&XVWRGLDO)XQGV
6XFFHVVRU$JHQF\WRWKH5HGHYHORSPHQW$JHQF\
3ULYDWH3XUSRVH7UXVW)XQG
&DVKDQG,QYHVWPHQWV
5HVWULFWHG,QYHVWPHQWV
KHOGE\ILVFDODJHQWV
7RWDO6XFFHVVRU$JHQF\WRWKH5HGHYHORSPHQW$JHQF\ 6XEWRWDO)LGXFLDU\)XQGV&DVKDQG,QYHVWPHQWV
7RWDO&DVKDQG,QYHVWPHQWV
7KHVH EDODQFHV DUH DYDLODEOH IRU RSHUDWLRQV RI WKH &LW\
V YDULRXV SURJUDPV DQG IXQGV VXEMHFW WR WKHLU
UHVSHFWLYHJUDQWIHHDVVHVVPHQWFRQWUDFWRURWKHUUHVWULFWLRQV
7KHVH EDODQFHV DUH KHOG E\ WKH &LW\ RU WKLUG SDUW\ ILVFDO DJHQWV SXUVXDQW WRGHEW FRYHQDQWV RU RWKHU DJUHHPHQWV
&DVKDQG,QYHVWPHQWV
+RXVLQJ$XWKRULW\
5HVWULFWHG&DVKDQG,QYHVWPHQWV
KHOGE\ILVFDODJHQWV
&LW\
+RXVLQJ$XWKRULW\
6XEWRWDO3ULPDU\*RYHUQPHQW&DVKDQG,QYHVWPHQWV
'LVFUHWH&RPSRQHQW8QLW
9):'
&DVKDQG,QYHVWPHQWV
5HVWULFWHG&DVKDQG,QYHVWPHQWV
KHOGE\ILVFDODJHQWV
6XEWRWDO&RPSRQHQW8QLW&DVKDQG,QYHVWPHQWV
5HSRUWHGRQWKH6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ
&XVWRGLDO)XQGV
7RWDO&LW\
5HSRUWHGRQWKH6WDWHPHQWRI1HW3RVLWLRQ
&DVKDQG,QYHVWPHQWV
&LW\
*HQHUDO)XQGLQFOXGLQJ0HDVXUH%
2WKHU)XQGV
55 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
& 3ROLFLHV
7KH&LW\¶VGHSHQGHQFHRQSURSHUW\WD[UHFHLSWVZKLFKDUHUHFHLYHGVHPLDQQXDOO\UHTXLUHVLWWRPDLQWDLQVLJQLILFDQW FDVKUHVHUYHVWRILQDQFHRSHUDWLRQVGXULQJWKHUHPDLQGHURIWKH \HDU7KH&LW\SRROVLGOHFDVK IURPDOOVRXUFHV DQGDOOIXQGVH[FHSW&DVKZLWK)LVFDO$JHQWV+RXVLQJ$XWKRULW\DQGWKH9):'VRWKDWLWFDQEHLQYHVWHGWRDFKLHYH DUHDVRQDEOHUDWHRIUHWXUQFRQVLVWHQWZLWKVDIHW\DQGOLTXLGLW\
&DVKUHFHLSWVDQGGLVEXUVHPHQWVLQFOXGLQJSD\UROODUHSURFHVVHGE\&LW\VWDIIZKLFKDGPLQLVWHUVDFWLYLWLHV IRUWKH IROORZLQJVHSDUDWHOHJDOHQWLWLHV
WKH&LW\WKH6XFFHVVRU$JHQF\WRWKH5HGHYHORSPHQW$JHQF\WKH+RXVLQJ$XWKRULW\ DQGWKH9DOOHMR+RPHOHVV1DYLJDWLRQ&HQWHU
7KHVH FDVK WUDQVDFWLRQV DUH UHFRUGHG LQ WKH &LW\¶V PDLQ FKHFNLQJ DFFRXQW ZLWK WUDQVDFWLRQV DOORFDWHG WR HDFK DSSOLFDEOHJHQHUDOOHGJHUIXQGRIWKH&LW\DQGLWVEOHQGHGFRPSRQHQWXQLWVSHQGLQJSHULRGLFUHLPEXUVHPHQW DQGVHWWOHPHQWRILQWHUDJHQF\EDODQFHV$VRI-XQHWKH&LW\KHOGEDODQFHVRIFDVKIRUHDFKRIWKH DERYH HQWLWLHVUHSUHVHQWLQJWKHLUHTXLW\LQWKH&LW\¶VFKHFNLQJDFFRXQW
,QYHVWPHQWLQFRPHLVDOORFDWHGDPRQJIXQGVRQWKHEDVLVRIDYHU DJHPRQWKHQGFDVKDQGLQYHVWPHQWEDODQFHV LQWKHVHIXQGV
&DOLIRUQLD/DZUHTXLUHVEDQNVDQGVDYLQJVDQGORDQLQVWLWXWLRQV WRSOHGJHJRYHUQPHQWVHFXULWLHVZLWKD PDUNHW YDOXHRIRIWKH&LW\¶VFDVKRQGHSRVLWRUILUVWWUXVWGHHGPRUWJDJHQRWHVZLWKDPDUNHWYDOXHRI RIWKH GHSRVLWDVFROODWHUDOIRUWKHVHGHSRVLWV8QGHU&DOLIRUQLD/DZ WKLVFROODWHUDOLVKHOGLQD VHSDUDWHLQYHVWPHQW SRROE\DQRWKHULQVWLWXWLRQLQWKH&LW\¶VQDPHDQGSODFHVWKH& LW\DKHDGRIJHQHUDO FUHGLWRUVRIWKHLQVWLWXWLRQ
7KH&LW\LQYHVWVLQLQGLYLGXDOLQYHVWPHQWVDQGLQLQYHVWPHQWSRROV,QGLYLGXDOLQYHVWPHQWVDUHHYLGHQFHGE\VSHFLILF LGHQWLILDEOHsecurities instrumentsRUE\DQHOHFWURQLFHQWU\UHJLVWHULQJWKHRZQHULQWKHUHFRUGVRIWKH'HSRVLWRU\7UXVW &RPSDQ\NQRZQDVWKHERRNHQWU\V\VWHP,QRUGHUWRVDIHJXDUGWKH&LW\¶VIXQGVWKH&LW\HPSOR\VDEDQNWRDFWDV FXVWRGLDQRIFHUWDLQ&LW\PDQDJHGLQYHVWPHQWVUHJDUGOHVVRIWKHLUIRUP7KHDVVHWVDUHKHOGLQWKHQDPHRIWKH&LW\ DQGDUHQRWFRPLQJOHGZLWKEDQNDVVHWV)XQGVKHOGLQLQYHVWPHQWSRROVDUHDOVRFXVWRGLHGLQWKHDJJUHJDWHEXWKHOG LQWKH&LW\¶VQDPHDQGWUDFNHGE\WKHSRRO¶VWUDQVIHUDJHQW
7KH&LW\¶VLQYHVWPHQWVDUHFDUULHGDWIDLUYDOXHDVUHTXLUHGE\JHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV 7KH&LW\ DGMXVWVWKHFDUU\LQJYDOXHRILWVLQYHVWPHQWVWRUHIOHFWWKHLUIDLUYDOXHDWHDFKILVFDO\HDUHQGDQGLW LQFOXGHVWKHHIIHFWV RIWKHVHDGMXVWPHQWVLQLQFRPHIRUWKDWILVFDO\HDU
&DVKDQGFDVKHTXLYDOHQWVLQFOXGLQJUHVWULFWHGFDVKDUHFRQVLGHUHGWREHOLTXLGDVVHWVIRUSXUSRVHRIPHDVXULQJ FDVKIORZV
' ,QYHVWPHQWV$XWKRUL]HGE\WKH&DOLIRUQLD*RYHUQPHQW&RGHDQGWKH&LW\¶V,QYHVWPHQW3ROLF\ 7KH&LW\¶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
56 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
&LW\DQG+RXVLQJ$XWKRULW\
7KH&LW\¶VLQYHVWPHQWSROLF\DQGWKH&DOLIRUQLD*RYHUQPHQW&RGHDOORZWKH&LW\DQGWKH+RXVLQJ $XWKRULW\WRLQYHVW LQWKHIROORZLQJLQYHVWPHQWV
9):'
9):'¶VLQYHVWPHQWSROLF\DQGWKH&DOLIRUQLD*RYHUQPHQW&RGHDOORZWKH9):'WRLQYHVWLQWKHIROORZLQJLQYHVWPHQWV
0D[LPXP
0DWXULW\
0LQLPXP&UHGLW
4XDOLW\
0D[LPXPLQ
3RUWIROLR
0D[LPXP,QYHVWPHQW
LQ2QH,VVXHU
<HDUV 1R/LPLW 1R/LPLW 1R/LPLW
<HDUV 1R/LPLW
1$ 1R/LPLW 1R/LPLW
'D\V $
'D\V +LJKHVW5DWLQJ
<HDUV $
<HDUV 1R/LPLW 1R/LPLW
<HDUV $
2Q'HPDQG 1R/LPLW
8S7R6WDWXWRU\
/LPLWV 1R/LPLW
<HDUV $
<HDUV +LJKHVW5DWLQJ
<HDUV +LJKHVW5DWLQJ
<HDUV $$
<HDUV $$
2Q'HPDQG 1R/LPLW 1R/LPLW 1R/LPLW
<HDUV $
6XSUDQDWLRQDOV \HDUV $$
$XWKRUL]HG,QYHVWPHQW7\SH
86*RYHUQPHQW7UHDVXU\%LOOV%RQGVDQG1RWHV
86*RYHUQPHQW$JHQFLHVDQG*RYHUQPHQW
5HSXUFKDVH$JUHHPHQWV
%DQNHUV$FFHSWDQFHV
&RPPHUFLDO3DSHU
&RUSRUDWH0HGLXP7HUP1RWHV
&HUWLILFDWHVRI'HSRVLW
1HJRWLDEOH&HUWLILFDWHVRI'HSRVLW
/RFDO*RYHUQPHQW,QYHVWPHQW3RROV
0XQLFLSDO%RQGVRI2WKHU6WDWHV
/RFDO$JHQF\,QYHVWPHQW)XQG6WDWH3RRO
6WDWHRI&DOLIRUQLDRU/RFDO$JHQF\%RQGV
0XWXDO)XQGV
0RQH\0DUNHW0XWXDO)XQGV
$VVHW%DFNHG6HFXULWLHV
0RUWJDJH%DFNHG6HFXULWLHVRU&ROODWHUDOL]HG0RUWJDJH
0D[LPXP
3HUFHQWDJH
RI3RUWIROLR
1RQH
1RQH
1RQH
1RQH
$VVHW%DFNHG6HFXULWLHV
6XSUDQDWLRQDOV
8QLWHG6WDWHV7UHDVXU\6HFXULWLHV
&HUWLILFDWHVRI'HSRVLW1RQQHJRWLDEOH
%DQNHUV
$FFHSWDQFHV
&RPPHULFDO3DSHURI3ULPH4XDOLW\
5HSXUFKDVH$JUHHPHQWV
0XQLFLSDO6HFXULWLHV
$XWKRUL]HG,QYHVWPHQW7\SH
*RYHUQPHQW$JHQF\2EOLJDWLRQV
FDOODEOH
0HGLXP7HUP&RUSRUDWH1RWHV5DWH$RUEHWWHU
&HUWLILFDWHVRI'HSRVLW1RQQHJRWLDEOH
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG
6KDUHVLQ%HQHILFLDO,QWHUHVW0RQH\0DUNHW)XQGVWZRKLJKHVWUDWLQJV 57 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
( 3XEOLF$JHQFLHV3RVWHPSOR\PHQW7UXVW
2Q $XJXVW WKH &LW\ &RXQFLO DGRSWHG UHVROXWLRQ 1& DSSURYLQJ WKH DGRSWLRQ RI WKH
3XEOLF $JHQFLHV 3RVWHPSOR\PHQW 7UXVW DGPLQLVWHUHG E\ 3XEOLF $JHQF\ 5HWLUHPHQW 6HUYLFHV 3$56
7KH
7UXVWLVDQLUUHYRFDEOHWUXVWDQGTXDOLILHVDVDQ,QWHUQDO5HYH QXH6HFWLRQWUXVW7KLVWUXVWZLOODVVLVWWKH&LW\ LQPLWLJDWLQJWKH&DO3(56FRQWULEXWLRQUDWHYRODWLOLW\,QYHVWP HQWVRIIXQGVKHOGLQ7UXVW DUHJRYHUQHGE\WKH ,QYHVWPHQW*XLGHOLQH'RFXPHQWIRUWKHLQYHVWPHQWDFFRXQWDQGE\WKHDJUHHPHQWIRUDGPLQLVWUDWLYHVHUYLFHVZLWK 3$56UDWKHUWKDQWKHJHQHUDOSURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHRUWKH&LW\¶VLQYHVWPHQWSROLF\7KH &LW\HOHFWHGDGLVFUHWLRQDU\LQYHVWPHQWDSSURDFKZKLFKDOORZVW KH&LW\WRPDLQWDLQRYHUVLJKWRIWKHLQYHVWPHQW PDQDJHPHQWFRQWURORQWDUJHW\LHOGDQGWKHSRUWIROLR¶VULVNWROHUDQFHXQGHUWKH0RGHUDWH+LJK0DUN3/860XWXDO )XQGLQYHVWPHQWRSWLRQ7KHDVVHWVLQWKH7UXVWZLOOHYHQWXDOO\ EHXVHGWRIXQGSHQVLRQSODQREOLJDWLRQV
) ,QYHVWPHQWV$XWKRUL]HGE\'HEW$JUHHPHQWV
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
&LW\'HEW$JUHHPHQWV
* ,QWHUHVW5DWH5LVN
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
,QIRUPDWLRQDERXWWKHVHQVLWLYLW\RIWKHIDLUYDOXHVRIWKHVHL QYHVWPHQWV LQFOXGLQJLQYHVWPHQWVKHOGE\ ERQG
WUXVWHHV
WRPDUNHWLQWHUHVWUDWHIOXFWXDWLRQVLVSURYLGHGE\W KHIROORZLQJWDEOHVWKDWVKRZWKHGLVWULEXWLRQRI WKHVHLQYHVWPHQWVE\PDWXULW\GDWHRUHDUOLHVWFDOOGDWHDW-XQH 0D[LPXP
0DWXULW\
0LQLPXP&UHGLW
4XDOLW\
0D[LPXPLQ
3RUWIROLR
0D[LPXP
,QYHVWPHQWLQ
2QH,VVXHU
1R/LPLW 1R/LPLW 1R/LPLW 1R/LPLW
1R/LPLW 7ZR+LJKHVW5DWLQJV 1R/LPLW
1R/LPLW 3ULPH$$P 1R/LPLW 1R/LPLW
'D\V +LJKHVW5DWLQJ 1R/LPLW 1R/LPLW
1R/LPLW 1R/LPLW 1R/LPLW 1R/LPLW
1R/LPLW $ 1R/LPLW 1R/LPLW
'D\V 7ZR+LJKHVW5DWLQJV 1R/LPLW 1R/LPLW
'D\V $ 1R/LPLW 1R/LPLW
'D\V $ 1R/LPLW 1R/LPLW
1R/LPLW 7ZR+LJKHVW5DWLQJV 1R/LPLW 1R/LPLW
1R/LPLW 7KUHH+LJKHVW5DWLQJV 1R/LPLW 1R/LPLW
1R/LPLW 7ZR+LJKHVW5DWLQJV 1R/LPLW 1R/LPLW
1R/LPLW 1R/LPLW 1R/LPLW 1R/LPLW
1R/LPLW 1R/LPLW 1R/LPLW 1R/LPLW
1R/LPLW $ 1R/LPLW 1R/LPLW
,QVXUHG)',&'HSRVLWV
$XWKRUL]HG,QYHVWPHQW7\SH
867UHDVXU\2EOLJDWLRQV
86*RYHUQPHQW$JHQF\2EOLJDWLRQ
0RQH\0DUNHW)XQGV
*RYHUQPHQW0RQH\0DUNHW)XQGV
6WDWH
RU0XQLFLSDOLW\
%RQGV1RWHV
/RFDO$JHQF\,QYHVWPHQW)XQG
/RFDO*RYHUQPHQW,QYHVWPHQW3RROV
7D[DEOH%RQGV
,QWHUHVW%HDULQJ 7LPH'HSRVLWV%DQNVRU6DYLQJV
%DQNHUV$FFHSWDQFHV
&RPPHUFLDO3DSHU
5HSXUFKDVH$JUHHPHQWV
7D[([HPSW2EOLJDWLRQV
5DWHG,QYHVWPHQW$JUHHPHQWVDQG&RQWUDFWV
58 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
&LW\DQG+RXVLQJ$XWKRULW\
9):'
/RFDO$JHQF\,QYHVWPHQW)XQG
7KH &LW\DQG WKH 9):' DUH SDUWLFLSDQWV LQ WKH /RFDO $JHQF\ ,QYHVWPHQW )XQG /$,)
WKDWLVUHJXODWHGE\
&DOLIRUQLD*RYHUQPHQW&RGH6HFWLRQ
XQGHUWKHRYHUVLJKWRIWKH7UHDVXUHU RI WKH 6WDWH RI &DOLIRUQLD 7KH EDODQFH LV DYDLODEOH IRU ZLWKGUDZDO RQ GHPDQG DQG LV EDVHG RQ WKH DFFRXQWLQJUHFRUGVPDLQWDLQHGE\/$,) ZKLFKDUHUHFRUGHGRQDQDPRUWL]HGFRVWEDVLVKRZHYHUHDFKDFFRXQWLVOLPLWHGWRILIWHHQWUDQVDFWLRQVSHUPRQWK ,QFOXGHGLQ/$,)¶VLQYHVWPHQWSRUWIROLRDUHFROODWHUDOL]HGPRUWJDJHREOLJDWLRQVPRUWJDJHEDFNHGVHFXULWLHVRWKHU DVVHWEDFNHG VHFXULWLHV ORDQV WR FHUWDLQ VWDWH IXQGV DQG IORDWLQJ UDWH VHFXULWLHV LVVXHG E\ IHGHUDO DJHQFLHV JRYHUQPHQWVSRQVRUHG HQWHUSULVHV8QLWHG6WDWHV7UHDVXU\1RWHVDQG%LOOVDQGFRUSRUDWLRQV
+ &UHGLW5LVN
&UHGLWULVNLVWKHULVNWKDWDQLVVXHURIDQLQYHVWPHQWZLOOQR WIXOILOOLWVREOLJDWLRQWRWKHKROGHURIWKH LQYHVWPHQW 7KLVLVPHDVXUHGE\WKHDVVLJQPHQWRIDUDWLQJE\DQDWLRQDOO\ UHFRJQL]HGVWDWLVWLFDOUDWLQJ RUJDQL]DWLRQ
3UHVHQWHGEHORZLVWKHDFWXDOUDWLQJDVRI-XQHIRUWKH&LW\DQG+RXVLQJ$XWKRULW\E\LQYHVWPHQW W\SHDV SURYLGHGE\0RRG\¶VLQYHVWPHQWUDWLQJV\VWHP
/HVVWKDQ<HDU <HDUV <HDUV 7RWDO
+HOGE\WKH&LW\DQGLWV%OHQGHG&RPSRQHQW8QLWV
86*RYHUQPHQW$JHQFLHV
$VVHW%DFNHG6HFXULWLHV
&RUSRUDWH0HGLXP7HUP1RWHV
867UHDVXU\1RWHV
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG &ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ
0RQH\0DUNHW0XWXDO)XQGV
+HOGE\)LVFDO$JHQWV
3$563RVW(PSOR\PHQW%HQHILW7UXVW
+LJK0DUN3/860XWXDO)XQG 0RQH\0DUNHW0XWXDO)XQGV
7RWDO,QYHVWPHQWV
,QYHVWPHQW7\SH
/HVVWKDQ<HDU <HDUV 7RWDO
*RYHUQPHQW$JHQF\2EOLJDWLRQV
867UHDVXU\
$VVHW%DFNHG6HFXULWLHV 6XSUDQDWLRQDOV
0HGLXP7HUP&RUSRUDWH1RWHV
&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ &DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG 0RQH\0DUNHW)XQGV
+HOGE\7UXVWHH
0RQH\0DUNHW0XWXDO)XQGV 7RWDO,QYHVWPHQWV ,QYHVWPHQW7\SH
59 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
&LW\DQG+RXVLQJ$XWKRULW\
9):'
3UHVHQWHGEHORZLVWKHDFWXDOUDWLQJDVRI-XQHIRUWK H9):'E\ LQYHVWPHQW W\SHDVSURYLGHGE\ 6WDQGDUGDQG3RRU¶VLQYHVWPHQWUDWLQJV\VWHP
, )DLU9DOXH+LHUDUFK\
7KH&LW\FDWHJRUL]HVLWVIDLUYDOXHPHDVXUHPHQWVZLWKLQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHGE\JHQHUDOO\DFFHSWHG DFFRXQWLQJSULQFLSOHV7KHKLHUDUFK\LVEDVHGRQWKHYDOXDWLRQ LQSXWVXVHGWRPHDVXUHIDLUYDOXH RIWKHDVVHWV /HYHOLQSXWVDUHTXRWHGSULFHVLQDQDFWLYHPDUNHWIRULGHQWL FDODVVHWV /HYHOLQSXWVDUH VLJQLILFDQWRWKHU
REVHUYDEOHLQSXWV
DQG/HYHOLQSXWVDUHVLJQLILFDQWXQREVHUYDEOHLQSXWV $DD $$WR$$ $WR$ 7RWDO
7RWDO5DWHG,QYHVWPHQWV
,QYHVWPHQW7\SH
+HOGE\WKH&LW\DQGLWV%OHQGHG&RPSRQHQW8QLWV
86*RYHUQPHQW$JHQFLHV
1RQ&DOODEOH
$VVHW%DFNHG6HFXULWLHV
&RUSRUDWH0HGLXP7HUP1RWHV
&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ
+HOGE\)LVFDO$JHQWV
0RQH\0DUNHW0XWXDO)XQGV
+LJK0DUN3OXV0XWXDO)XQG
7RWDO,QYHVWPHQWV
([HPSW
867UHDVXU\1RWHV
1RQ5DWHG
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG
0RQH\0DUNHW0XWXDO)XQGV
3$563RVW(PSOR\PHQW%HQHILW7UXVW
$$$$$$P $$$$$$ 7RWDO
*RYHUQPHQW$JHQF\2EOLJDWLRQV
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQGV
0RQH\0DUNHW)XQGV
0RQH\0DUNHW0XWXDO)XQGV
1RQ5DWHG
&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ
7RWDO,QYHVWPHQWV
,QYHVWPHQW7\SH
867UHDVXU\
$VVHW%DFNHG6HFXULWLHV
6XSUDQDWLRQDO
0HGLXP7HUP&RUSRUDWH1RWHV
60 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
&LW\DQG+RXVLQJ$XWKRULW\
7KH IROORZLQJ LV D VXPPDU\ RI WKH IDLU YDOXH KLHUDUFK\ RI WKH IDLU YDOXH RI LQYHVWPHQWV RI WKH &LW\ DQG +RXVLQJ$XWKRULW\DVRI-XQH
$VVHW%DFNHG6HFXULWLHVFODVVLILHGLQ/HYHORIWKHIDLUYDOXHKLHUDUFK\DUHYDOXHGXVLQJ,'&&02SULFLQJVHUYLFH 86*RYHUQPHQW$JHQFLHV867UHDVXU\1RWHV &RUSRUDWH0HGLXP 7HUP1RWHVDQG&ROODWHUDOL]HG0RUWJDJH 2EOLJDWLRQVFODVVLILHGLQ/HYHORIWKHIDLUYDOXHKLHUDUFK\DUHYDOXHGXVLQJ,'&,QVWLWXWLRQDO%RQG3ULFLQJ7KHVH SULFHVDUHREWDLQHGIURPYDULRXVSULFLQJVRXUFHVE\RXUFXVWRGLDQEDQN)DLUYDOXHLVGHILQHGDVWKHTXRWHGPDUNHW YDOXHRQWKHODVWWUDGLQJGD\RIWKHSHULRG
9):'
7KHIROORZLQJLVDVXPPDU\RIWKHIDLUYDOXHKLHUDUFK\RIWKHI DLUYDOXHRILQYHVWPHQWVRIWKH9):'DV RI -XQH
/HYHO 7RWDO
0RQH\0DUNHW0XWXDO)XQGV
,QYHVWPHQWV1RW6XEMHFWWR)DLU9DOXH+LHUDUFK\
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG
7RWDO,QYHVWPHQWV
6XEWRWDO
,QYHVWPHQWV0HDVXUHGDW$PRUWL]HG&RVW
0RQH\0DUNHW0XWXDO)XQGV
3$563RVW(PSOR\PHQW%HQHILW7UXVW
+LJK0DUN3/860XWXDO)XQG
+HOGZLWK)LVFDO$JHQW
&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ
,QYHVWPHQWVE\)DLU9DOXH/HYHO
86*RYHUQPHQW$JHQFLHV
$VVHW%DFNHG6HFXULWLHV
&RUSRUDWH0HGLXP7HUP1RWHV
867UHDVXU\1RWHV
/HYHO 7RWDO
6XSUDQDWLRQDOV
0RQH\0DUNHW0XWXDO)XQGV
,QYHVWPHQWV1RW6XEMHFWWR)DLU9DOXH+LHUDUFK\
&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG
7RWDO,QYHVWPHQWV
6XEWRWDO
,QYHVWPHQWV0HDVXUHGDW$PRUWL]HG&RVW
0RQH\0DUNHW0XWXDO)XQGV
+HOGZLWK)LVFDO$JHQW
,QYHVWPHQWVE\)DLU9DOXH/HYHO
86*RYHUQPHQW$JHQFLHV
$VVHW%DFNHG6HFXULWLHV
0HGLXP7HUP&RUSRUDWH1RWHV
867UHDVXU\1RWHV
&ROODWHUDOL]HG0RUWJDJH2EOLJDWLRQ
61 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$6+$1',19(670(176
&217,18('
7KH'LVWULFWFDWHJRUL]HVWKHIDLUYDOXHPHDVXUHPHQWVRILWVLQYHVWPHQWVEDVHGRQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHG E\JHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV7KHKLHUDUFK\ZKLFKKDVWKUHHOHYHOVLVEDVHGRQWKHYDOXDWLRQLQSXWV XVHGWRPHDVXUHDQDVVHW¶VIDLUYDOXH
/HYHOLQSXWVDUHTXRWH GSULFHVLQDFWLYHPDUNHWVIRULGHQWLFDODVVHWV
/HYHOLQSXWVDUHVLJQLILFDQWRWKHUREVHUYDEOHLQSXWV
/HYHOLQSXWVDUHVLJQLILFDQWXQREVHUYDEOHLQSXWV7KH'LVWULFW GRHVQRWKDYHDQ\LQYHVWPHQWVWKDWDUHPHDVXUHGXVLQJ/HYHOD QGLQSXWV)DLUYDOXHVDUHEDVHGRQTXRWHG PDUNHWSULFHVIRUVLPLODUVHFXULWLHVLQPDUNHWVWKDWDUHQRWDFWLYHDQGPRGHOEDVHGWHFKQLTXHVIRUZKLFKDOOVLJQLILFDQW DVVXPSWLRQVDUHREVHUYDEOHLQWKHPDUNHWUHVXOWLQJLQD/HYHOYDOXDWLRQ
- &RQFHQWUDWLRQ5LVN
7KH&LW\DQGWKH9):'LQYHVWPHQWSROLFLHVUHJDUGLQJWKHDPRXQW WKDWFDQEHLQYHVWHGLQDQ\RQHLVVXHU DUH VWLSXODWHG E\ WKH &DOLIRUQLD *RYHUQPHQW &RGH+RZHYHU WKHVH HQWLWLHV DUH UHTXLUHG WRGLVFORVHLQYHVWPHQWV WKDWUHSUHVHQWDFRQFHQWUDWLRQRIRUPRUHRILQYHVWPHQWVLQ DQ\RQHLVVXHUKHOGE\LQGLYLGXDO)XQGVLQ WKHVHFXULWLHVRILVVXHUVRWKHUWKDQ867UHDVXU\VHFXULWLHV PXWXDOIXQGVDQGH[WHUQDOLQYHVWPHQWSRROV
$W-XQHWKHVHHQWLWLHV¶LQYHVWPHQWVWKDWUHSUHVHQWDFRQFHQWUDWLRQRILQYHVWPHQWVLQWKHVHFXULWLHVRIDQ\ LQGLYLGXDOLVVXHUVRWKHUWKDQ867UHDVXU\VHFXULWLHVPXWXDOIXQGVRUH[WHUQDOLQYHVWPHQWSDUWVDUHVHWIRUWKEHORZ
&LW\&RQFHQWUDWLRQ5LVN
&LW\GLGQRWKDYHDQ\LQYHVWPHQWWKDWTXDOLILHGRYHUWKHFRQFHQWUDWLRQULVN
9):'&RQFHQWUDWLRQ5LVN
7KH9):'KDGQRLQYHVWPHQWVLQWKHVHFXULWLHVRIDQ\LQGLYLGXDOLVVXHURWKHUWKDQ867UHDVXU\VHFXULWLHVPXWXDO IXQGVDQGH[WHUQDOLQYHVWPHQWSRROVWKDWUHSUHVHQWRUPRUH RIWRWDOLQYHVWPHQWVIRUWKHILVFDO\HDUHQGHG -XQH
. &XVWRGLDO&UHGLW5LVN
7KHFXVWRGLDOFUHGLWULVNIRUFDVKGHSRVLWVLVWKHULVNWKDWL QWKHHYHQWRIWKHIDLOXUHRIWKHILQDQFLDO LQVWLWXWLRQ KROGLQJWKHGHSRVLWVWKHGHSRVLWRUZLOOQRWEHDEOHWRUHFRYHUWKHYDOXHRILWVGHSRVLWV
$W-XQHWKH9):'GHSRVLWDQGLQYHVWPHQWEDODQFHVZHUHH[SRVHGWRFXVWRGLDOULVNDVIROORZ
'HSRVLWVXQLQVXUHGDQGFROODWHUDOL]HGZLWKVHFXULWLHVKHOGE\WKHSOHGJLQJEDQN¶VWUXVWGHSDUWPHQWRUDJHQWQRWLQWKH 'LVWULFW¶VQDPH
62 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
,17(5)81'75$16$&7,216
$ 7UDQVIHUV%HWZHHQ)XQGV
7UDQVIHUVEHWZHHQIXQGVGXULQJWKHILVFDO\HDUHQGHG-XQHZHUHDVIROORZV
% &XUUHQW,QWHUIXQG%DODQFHV
$VRI-XQHWKH&LW\¶V:RUNHUV¶&RPSHQVDWLRQ,QVXUDQFH,QWHUQDO6HUYLFH)XQGKDGSURYLGHG LQVKRUWWHUPOHQGLQJWRRWKHUJRYHUQPHQWDOIXQGVZLWKGHILFLWFDVKSRVLWLRQV,WLVWKH&LW\¶VSUDFWLFHWRXVHWKH&LW\¶V :RUNHUV¶&RPSHQVDWLRQ,QVXUDQFH,QWHUQDO6HUYLFH)XQGWRFRYHUWHPSRUDU\FDVKVKRUWIDOOVDVWKLVIXQGLVSULPDULO\ IXQGHGE\WKH*HQHUDO)XQG$GGLWLRQDOO\WKH:RUNHUV¶&RPSHQVDWLRQ,QVXUDQFH,QWHUQDO6HUYLFH)XQGKDVEXLOWD VXIILFLHQWFDVKUHVHUYHWREHDEOHWRFRYHUWKHWHPSRUDU\FDVKVKRUWIDOOVLQRWKHUIXQGV7KHVHEDODQFHVDUHH[SHFWHG WREHUHSDLGVKRUWO\DIWHUWKHHQGRIWKHILVFDO\HDUXSRQUHFHLSWRIJUDQWRURWKHUUHLPEXUVHPHQWV
7KH&LW\ZDVDOVRDXGLWHGE\WKH'HSDUWPHQWRI+RXVLQJDQG8UED Q'HYHORSPHQW +8'
RQLWV+20(SURJUDP
IXQGVGXULQJWKHFXUUHQWILVFDO\HDU,Q+8'¶V'HFHPEHUUHSRUW+8'GLVDOORZHGFRVWVLQWKHWRWDODPRXQW RI
GXHWRQRQFRPSOLDQFHZLWKWKH+20(IRXU\HDUSURMHFWGHDGOLQH7KH&LW\KDVUHFRUGHGDVKRUWWHUP OHQGLQJEHWZHHQLWV*HQHUDO)XQGDQG+20()XQGWRFRYHUIRUWKH GLVDOORZDQFHSHQGLQJ+8'¶VGHFLVLRQRQWKH &LW\¶VYROXQWDU\JUDQWUHGXFWLRQUHTXHVW
$
%
&
'
)
&
%
&
)OHHW0DLQWHQDQFH5HSODFHPHQW,QWHUQDO6HUYLFH)XQG
$
$
&
$
(
$
'
7R7UDQVIHU7HFKQRORJ\6XUFKDUJH)HHVWR&DSLWDO3URMHFWV)XQG
)
7R)XQG3DUWLFLSDWRU\%XGJHWLQJ3URMHFWV
)XQG0DNLQJ7UDQVIHUV )XQG5HFHLYLQJ7UDQVIHUV $PRXQW7UDQVIHUUHG *HQHUDO)XQG
2WKHU*RYHUQPHQWDO)XQGV
)LEHU(QWHUSULVH)XQG
0DULQD(QWHUSULVH)XQG
6SHFLDO5HYHQXH)XQGV
+RXVLQJ$XWKRULW\6SHFLDO5HYHQXH)XQG 2WKHU*RYHUQPHQWDO)XQGV *HQHUDO)XQG 2WKHU*RYHUQPHQWDO)XQGV 7RWDO
$
7R)XQG&LW\2SHUDWLRQV
,QWHUQDO6HUYLFH)XQGV
(TXLSPHQW5HSODFHPHQW 0DULQD(QWHUSULVH)XQG 3DUNLQJ(QWHUSULVH)XQG
%
7R)XQG'HEW6HUYLFH3D\PHQWV
&
7R)XQG&DSLWDO3URJUDP3URMHFWV
(
7R)XQG$IIRUGDEOH+RXVLQJ
&DSLWDO3URMHFWV)XQGV
2WKHU*RYHUQPHQWDO)XQGV *HQHUDO)XQG
'XHIURP2WKHU
)XQGV
'XHWR
2WKHU)XQGV
*RYHUQPHQWDO)XQG
*HQHUDO)XQG
2WKHU*RYHUQPHQWDO
,QWHUQDO6HUYLFH)XQG
7RWDO
:RUNHUV
&RPS
63 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
,17(5)81'75$16$&7,216
&217,18('
& /RQJ7HUP,QWHUIXQG$GYDQFHV
$W-XQHWKHIXQGVEHORZPDGHDGYDQFHVWKDWDUHQRWH[SHFWHGWREHUHSDLGZLWKLQWKHQH[W\HDU
Fiber Optic Fund
,Q)LVFDO<HDUWKH*HQHUDO)XQGDGYDQFHGWRWKH)LEHU2SWLF(QWHUSULVH)XQGWRSURYLGHDFDSLWDO DQG RSHUDWLQJ UHVHUYH DOORZLQJ WKH SURMHFW WR PRYH IRUZDUG XQWLOUHYHQXHVFRPPHQFH$PHQGHGSD\PHQWV RIDUHGXHDQQXDOO\RQ-XQHWKURXJK-XQH DQGRQHILQDOSD\PHQWRIRQ -XQH
WRDOORZWKHIXQGWRJHQHUDWHVXIILFLHQWUHYHQXHVWRPDNHWKHGHEWVHUYLFHSD\PHQWV
Subsidies Allowance
&XPXODWLYHWR-XQHWKH*HQHUDO)XQGKDVDGYDQFHG
WRWKH0DULQD(QWHUSULVH)XQG
WRWKH*ROI(QWHUSULVH)XQGDQG
WRWKH9D OOHMR6WDWLRQ3DUNLQJ(QWHUSULVH)XQG7KHVH *HQHUDO)XQGDGYDQFHVDUHRIIVHWZLWKDDOORZDQFHIRUFROO HFWDELOLW\VLQFHWKHUHDUHFXUUHQWO\QRUHSD\PHQW SODQVHVWDEOLVKHGIRUWKHVHORDQV+RZHYHUWKH&LW\LVDQWLFLSDWLQJWKDWWKHVHIXQGVZRXOGKDYHVXIILFLHQWUHVRXUFHV WRPDNHUHSD\PHQWVLQWKHIXWXUHZLWKWKHLQFUHDVHGXVHUIHHV SURSRVHG*ROIDQG+RXVLQJGHYHORSPHQWDQG GRZQWRZQSDUNLQJLPSURYHPHQWVDQGHQIRUFHPHQWV
' ,QWHUQDO%DODQFHV
,QWHUQDO EDODQFHV DUH SUHVHQWHG LQ WKH (QWLW\ZLGH ILQDQFLDO VWDWHPHQWV RQO\ 7KH\ UHSUHVHQW WKH QHW LQWHUIXQG UHFHLYDEOHV DQG SD\DEOHV UHPDLQLQJ DIWHU WKH HOLPLQDWLRQ RI DOO VXFK EDODQFHVZLWKLQJRYHUQPHQWDO DQGEXVLQHVVW\SHDFWLYLWLHV
$PRXQW
1HW$GYDQFHV
0DULQD(QWHUSULVH)XQG
*ROI(QWHUSULVH)XQG
9DOOHMR6WDWLRQ3DUNLQJ(QWHUSULVH)XQG
$OORZDQFHIRU&ROOHFWDELOLW\
$VVHW
/LDELOLW\
)XQG0DNLQJ$GYDQFH )XQGV5HFHLYLQJ$GYDQFH
*HQHUDO)XQG )LEHU2SWLF(QWHUSULVH)XQG
64 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
$ 6XPPDU\RI1RWHVDQG/RDQV5HFHLYDEOH
7KHIROORZLQJQRWHVDQGORDQVUHFHLYDEOHZHUHRXWVWDQGLQJDVRI-XQH7KHVHORDQVDUHQRWDQWLFLSDWHGWREH IXOO\FROOHFWHGZLWKLQWKH\HDU
$PRXQWV
0DMRU*RYHUQPHQWDO
9DOOHMR36+//3
1RQ0DMRU*RYHUQPHQWDO
5H\QDLVVDQFH)DPLO\&HQWHU
*HQHUDO)XQG
6LQJOH)DPLO\5HVLGHQWLDO
6LQJOH)DPLO\5HVLGHQWLDO
1HLJKERUKRRG6WDELOL]DWLRQ3URJUDP 1RQ0DMRU*RYHUQPHQWDO 7HPSOH$UWV/RIWV
&RPPXQLW\+RXVLQJ'HYHORSPHQW3URJUDP
0DULQD7RZHUV
%D\$UHD&RPPXQLW\6HUYLFHV
7HPSOH$UW/RIWV
7HPSOH$UWV/RIWV
9DOOHMR+RXVLQJ&ROODERUDWLYH
6RODQR1DSD+DELWDWIRU+XPDQLW\
9DOOHMR36+/3
6LQJOH)DPLO\5HVLGHQWLDO
&RPPXQLW\'HYHORSPHQW%ORFN*UDQW
5HVLGHQWLDO5HKDELOLWDWLRQ
9DOOHMR+RXVLQJ&ROODERUDWLYH
+20(3URJUDP 1RQ0DMRU*RYHUQPHQWDO
$YLDQ*OHQ
0DULQD7RZHUV
6RODQR9DOOHMR$5/36RODQR9LVWD,
6LQJOH)DPLO\5HVLGHQWLDO
7HPSOH$UWV/RIWV
$FFUXHG,QWHUHVW
$IIRUGDEOH+RXVLQJ
6HW$VLGH
(GHQ+RXVLQJ
$YLDQ*OHQ
&LWL]HQ+RXVLQJ
7\SHRI/RDQV )XQG7\SH
3ULPDU
\*RYHUQPHQWDQG%OHQGHG&RPSRQHQW8QLWV
+RXVLQJ3URJUDPV
+RXVLQJ$XWKRULW\3URJUDPV 0DMRU*RYHUQPHQWDO
65 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
% $IIRUGDEOH+RXVLQJDQG5HVLGHQWLDO5HKDELOLWDWLRQ
2Q)HEUXDU\WKH+RXVLQJ$XWKRULW\HOHFWHGWREHFRPHWKH+RXVLQJ6XFFHVVRURIWKHIRUPHU5HGHYHORSPHQW $JHQF\
5'$
XQGHUWKHSURYLVLRQVRI$%DQGDVVXPHGWKH5' $KRXVLQJDVVHWV7KHVHDVVHWVLQFOXGHWKH IROORZLQJYDULRXVORDQVJUDQWHGWRGHYHORSHUVXQGHUWKHDIIRUGDEOHKRXVLQJSURJUDPV
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
,Q$XJXVWWKHIRUPHU5HGHYHORSPHQW$JHQF\RIWKH&LW\RI 9DOOHMRHQWHUHGLQWRDQDFTXLVLWLRQ ORDQDJUHHPHQWLQWKHDPRXQWRIDQGDSHUPDQHQWILQDQF LQJORDQDJUHHPHQWLQWKH DPRXQWRIZLWK$YLDQ*OHQ7KHORDQVZHUHXVHGWRSDUWLDOO\IXQGWKHFRQVWUXFWLRQRID PXOWLIDPLO\UHVLGHQWLDOKRXVLQJFRPSOH[FRQWDLQLQJXQLWV7 KHWHUPRIWKHSURPLVVRU\QRWHLV \HDUVDWLQWHUHVWSHUDQQXPDQGUHSD\DEOHIURPVXUSOXVFDVKDVGHILQHGLQWKHDJUHHPHQW
,Q-XO\WKHIRUPHU5HGHYHORSPHQW$JHQF\RIWKH&LW\RI9 DOOHMRHQWHUHGLQWRDQDFTXLVLWLRQ ORDQDJUHHPHQWLQWKHDPRXQWRIDQGDSHUPDQHQWILQDQF LQJORDQDJUHHPHQWLQWKH DPRXQW RI
ZLWK 6HUHQR 9LOODJH $VVRFLDWHV WR SDUWLDOO\ IXQG WKH FRQVWUXFWLRQ RI D PXOWLIDPLO\UHVLGHQWLDOKRXVLQJFRPSOH[FRQWDLQLQJXQLWV,WZDVDJUHHGWRGHIHUUHSD\PHQWRI WKHVHQRWHVXQWLOWKH96)&'QRWHDQG&LW\*95'QRWHVDUHUHSDLGLQIXOO7KHWHUPRIWKHSURPLVVRU\ QRWHLVLQWHUHVWSHUDQQXPZLWKSD\PHQWVPDGHIURPSURUDWHGVKDUHRI1HW6XUSOXV&DVKIURP WKHSURMHFW
,Q$XJXVWWKHIRUPHU5HGHYHORSPHQW$JHQF\RIWKH&LW\RI 9DOOHMRHQWHUHGLQWRDSDUWLFLSDWLRQ ORDQDJUHHPHQWLQWKHDPRXQWRIZLWK0DULQD7RZHU$VVR FLDWHVIRUWKHSXUFKDVHDQG UHKDELOLWDWLRQRIUHVLGHQWLDODSDUWPHQWXQLWV7KHWHUPRIWKHSURPLVVRU\QRWHLV\HDUVDW LQWHUHVWSHUDQQXP
$PRXQWV
7\SHRI/RDQV )XQG7\SH
'HYHORSPHQW3URJUDPV
6HUHQR9LOODJH$SDUWPHQWV
*HQHUDO)XQG 0DMRU*RYHUQPHQWDO
1HLJKERUKRRG3DUNV)XQG 1RQ0DMRU*RYHUQPHQWDO
2WKHU3URJUDPV
*HQHUDO)XQG7HPSOH$UWV/RIWV 0DMRU*RYHUQPHQWDO
7UDQVSRUWDWLRQ,PSDFW0LWLJDWLRQ)XQG
7HPSOH$UW/RIWV 1RQ0DMRU*RYHUQPHQWDO
1RQ0DMRU*RYHUQPHQWDO
7RWDO3ULPDU\*RYHUQPHQW1RWHVDQG/RDQV5HFHLYDEOH
$GYDQFHVWR)RUPHU5HGHYHORSPHQW$JHQF\
6XFFHVVRU$JHQF\
(PSUHVV7KHDWHU
+LGGHQEURRNH2YHUSDVV)XQG 1RQ0DMRU*RYHUQPHQWDO
$UWVDQG&RQYHQWLRQ&HQWHU)XQG 1RQ0DMRU*RYHUQPHQWDO
7RWDO1RWHVDQG/RDQV5HFHLYDEOH
*HRUJLD6WUHHW([WHQVLRQ
%ULGJH&RQVWUXFWLRQ)XQG
66 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
,Q'HFHPEHUWKHIRUPHU5HGHYHORSPHQW$JHQF\RIWKH&LW\ RI9DOOHMRHQWHUHGLQWRDORDQ DJUHHPHQWZLWKWKH%XLOGHUV$OOLDQFHIRU$IIRUGDEOH+RXVLQJ,,/3LQWKHRULJLQDODPRXQWRI ZLWKDWHUPRI\HDUVDQGVLPSOHLQWHUHVWWRDVVLVWFRYHULQJWKHFRVWVIRUWKHGHYHORSPHQWRID
XQLWVHQLRUKRXVLQJSURMHFWRQWKHSURSHUW\FRPPRQO\NQRZQDV6RODQR9LVWD6HQLRU$SDUWPHQWV ,Q'HFHPEHUDQDVVXPSWLRQDQGDVVLJQPHQWDJUHHPHQWZDVHQ WHUHGLQWREHWZHHQ%XLOGHU $OOLDQFHIRU$IIRUGDEOH+RXVLQJ,,/3DQG6RODQR9DOOHMR$5/3ZKHUHWKHRULJLQDOQRWHVKDOOEH FDQFHOOHGDQGVXSHUVHGHGE\WKHDPHQGHGDQGUHVWDWHGQRWH7KH &LW\FDSLWDOL]HGRI DFFUXHGLQWHUHVWIURPWKHUHPDLQLQJORDQEDODQFH$VDUHVXOWRIHQWHULQJWKLVDJUHHPHQWWKHQHZ SULQFLSDOORDQEDODQFHLVZLWKDWHUPRI\HDUVDQGDVLPSOHLQWHUHVWUDWHRIVWDUWLQJ 'HFHPEHU
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
,Q2FWREHUWKHIRUPHU5HGHYHORSPHQW$JHQF\RIWKH&LW\R I9DOOHMRHQWHUHGLQWRDORDQ DJUHHPHQWLQWKHRULJLQDODPRXQWRIZLWK7HPSOH$UW/RIW$VVRFLDWHV/37KLVORDQZLOO SDUWLDOO\IXQGWKHDFTXLVLWLRQDQGUHKDELOLWDWLRQRIWZRH[LVWLQJEXLOGLQJVDW0DULQ6WUHHW7KH WHUPRIWKHORDQLVSD\DEOHHLWKHUDWWKHVDOHRIWKHKRXVLQJSURMHFWRUDW\HDUVDQGDVLPSOHLQWHUHVW RISHUDQQXP
7KHVHDUHWKHDFFXPXODWHGDFFUXHGLQWHUHVWIRUWKHYDULRXVGHY HORSHUORDQVXQGHUWKHDIIRUGDEOH KRXVLQJSURJUDPV
,QDGGLWLRQWKH+RXVLQJ$XWKRULW\KDGHQWHUHGLQWRORDQDJUHHPHQWVZLWKWKHIROORZLQJGHYHORSHUVXQGHULWVUHVLGHQWLDO SXUFKDVHDQGUHKDELOLWDWLRQSURJUDPV
7KHUHVLGHQWLDOUHKDELOLWDWLRQORDQLVDVLQJOHORDQHQWHUHG LQWR'HFHPEHUZLWK7HPSOH$UW /RIWV$VVRFLDWHV/37KHSULQFLSDO VKDOOEHGXHDQGSD\DEOHLQIXOOXSRQWKHWKDQQLYHUVDU\RI WKHGDWHRIWKHQRWH$VORQJDVQR(YHQWRI'HIDXOWRFFXUVSULRUWRWKHPDWXULW\GDWHERUURZHUVKDOO QRWEHREOLJHGWRSD\ SHULRGLFSD\PHQWVRISULQFLSDODQGRULQWHUHVWRQWKHSULQFLSDODPRXQW7KH RXWVWDQGLQJEDODQFHDW-XQHUHPDLQVDW
DQGUHFRUGHGLQWKH6HFWLRQ2SHUDWLQJ
5HVHUYH)XQG
,Q -XO\ WKH +RXVLQJ $XWKRULW\ HQWHUHG LQWR D ORDQ DJUHHPHQW ZLWK 9DOOHMR +RXVLQJ &ROODERUDWLYH //&LQWKHDPRXQWRI
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
& +20(3URJUDP&'%*3URJUDPDQG1633URJUDP
9DULRXVUHVLGHQWLDOSXUFKDVHDQGUHKDELOLWDWLRQORDQSURJUDPVD UHRIIHUHGWRTXDOLI\LQJORZWRPRGHUDWHLQFRPH LQGLYLGXDOVE\WKH&LW\WKURXJKWKH+20(&'%*DQG1633URJUDPV7KHORDQSRUWIROLRDOVRLQFOXGHVORDQVPDGHWR DIIRUGDEOHKRXVLQJGHYHORSHUVIRUUHQWDOKRXVLQJSURMHFWV 67 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
,Q-XQHWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK$YLD Q*OHQWRSURYLGHDGGLWLRQDOIXQGLQJ IRUWKHFRQVWUXFWLRQRIDPXOWLIDPLO\UHVLGHQWLDOKRXVLQJFRPSOH[FRQWDLQLQJXQLWV7KHWHUPRIWKH SURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP
,Q$XJXVWWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQW0DULQD 7RZHU$VVRFLDWHVLQWKHDPRXQWRI IRUUHKDELOLWDWLRQRIDPXOWLIDPLO\UHQWDOKRXVLQJGHYHORSPHQWRIIHULQJDIIRUGDEOHKRXVLQJIRU ORZLQFRPHVHQLRUFLWL]HQV7KHWHUPRIWKHSURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP
,Q0DUFKWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK7HP SOH$UW/RIW$VVRFLDWHV/3WR SURYLGHDGGLWLRQDOIXQGLQJIURP+20(SURJUDPIRUWKHFRQVWUXFWLRQDQGUHKDELOLWDWLRQRIH[LVWLQJ EXLOGLQJVORFDWHGDW0DULQ6WUHHW7KHWHUPRIWKHSURP LVVRU\QRWHLV\HDUVDW LQWHUHVWSHUDQQXP
,Q-XO\WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK9DOO HMR+RXVLQJ&ROODERUDWLYHXVLQJ+20( IXQGVWRSDUWLDOO\IXQGWKHVDPHSURMHFWIXQGHGZLWKORDQIURP9DOOHMR+RXVLQJ$XWKRULW\7KHWHUPRI WKHSURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXPDQGUHSD\DEOHIURPUHVLGXDOUHFHLSWVDV GHILQHGLQWKHDJUHHPHQW
,Q-XO\WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK 6RODQ R1DSD+DELWDWIRU+XPDQLW\IRUWKH DFTXLVLWLRQDQGGHYHORSPHQWRIRZQHURFFXSLHGDIIRUGDEOHKRXVLQJRIDVLQJOHIDPLO\KRPHORFDWHGDW 7UHJDVNLV$YHQXHLQ9DOOHMR7KHORDQWHUPLV\HDUVDWVLPSOHLQWHUHVWDQGSULQFLSDOSD\PHQWV DUHGHIHUUHG0DQDJHPHQWLVZRUNLQJRQHVWDEOLVKLQJQHZORDQWHUPVZLWKWKHERUURZHU
,Q'HFHPEHUWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK 9DOOHMR36+/3WRSDUWLDOO\IXQG WKHFRQVWUXFWLRQFRVWVRIWKH%OXH2DN/DQGLQJSURMHFWDW6DFUDPHQWR6WUHHW7KHWHUPRIWKH SURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP
9DULRXVORDQVJUDQWHGIRUUHVLGHQWLDOSXUFKDVHDQGUHKDELOLWDWL RQIRUTXDOLI\LQJORZWRPRGHUDWH LQFRPHLQGLYLGXDOVWKURXJKWKH+20(SURJUDP
7KH &LW\ HQWHUHG LQWR D ORDQ DJUHHPHQW ZLWK5H\QDLVVDQFH)DPLO\&HQWHU IRUSXUFKDVH DQG UHKDELOLWDWLRQRIDUHDOSURSHUW\ORFDWHGDW6DFUDPHQWR6WUHHWLQ9DOOHMR7KLVORDQZDVGXHDQG SD\DEOH DW RQ 'HFHPEHU $W WKH RSWLRQ RI WKH &LW\ &RXQFLO WKH ORDQ FRXOG EH GHIHUUHGH[WHQGHGIRUDQDGGLWLRQDOWHQ\HDUVLIWKHFHQWHULVVWLOOLQRSHUDWLRQ0DQDJHPHQWLVZRUNLQJ RQHVWDEOLVKLQJQHZORDQWHUPVZLWKWKHERUURZHU
,Q)HEUXDU\WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK <RXWKDQG)DPLO\VHUYLFHVIRU ³5RVHZRRG+RXVH´DVL[EHGWUDQVLWLRQDOKRXVLQJIDFLOLW\,Q<RXWKDQG)DPLO\6HUYLFHVFHDVHG RSHUDWLRQVDQGGHIDXOWHGRQORDQ,Q%D\$UHD&RPPXQLW\6H UYLFHVH[SUHVVHGLQWHUHVWLQ DVVXPLQJORDQDQGZDVDVVLJQHGORDQ7KLVORDQZDVGXHDQGSD\DEOH-XQHDWLQWHUHVWUDWH RISHUDQQXP/RDQZLOOEHFRQVLGHUHGSDLGLQIXOOE\WKHFLW\LISURSHUW\LVXWLOL]HGFRQWLQXRXVO\E\ ERUURZHUIRUWUDQVLWLRQDOKRXVLQJZLWKVXSSRUWLYHVHUYLFHDQG$QQXDO3HUIRUPDQFHUHSRUWVUHTXLUHGE\ +8'DUHVXEPLWWHG
,Q0DUFKWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK7HPS OH$UW/RIW$VVRFLDWHV/3WR SURYLGHDGGLWLRQDOIXQGLQJIURP&'%*SURJUDPIRUWKHUHKDELOLWDWLRQRIH[LVWLQJEXLOGLQJVORFDWHG DW0DULQ6WUHHW7KHWHUPRIWKHSURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP 68 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
9DULRXVORDQVJUDQWHGIRUUHVLGHQWLDOSXUFKDVHDQGUHKDELOLWDWL RQIRUTXDOLI\LQJORZWRPRGHUDWH LQFRPHLQGLYLGXDOVWKURXJKWKH&'%*SURJUDP7KHVHORDQVDUHVH FXUHGE\ ILUVWRUVHFRQG PRUWJDJHVRQWKHUHVLGHQWLDOSURSHUW\DQGDUHLQVXUHGE\SULYDWHJXDUDQW\PRUWJDJHLQVXUDQFH7KH WHUPVYDU\JUHDWO\GHSHQGLQJRQWKHDELOLW\RIWKHSURSHUW\RZQHUWRUHSD\WKHORDQ,QWHUHVW UDWHVRQ WKHVHORDQVUDQJHIURPWRDQGWKHSULQFLSDOPDWXULW\ GDWHVUDQJHIURP\HDUVWR \HDUV
,Q0DUFKWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK7HPSOH$UW/RIW$VVRFLDWHV/3IURP 163SURJUDPIXQGVIRUWKHUHKDELOLWDWLRQRIH[LVWLQJEXLOGLQJ VORFDWHGDW0DULQ6WUHHW 7KHWHUPRIWKHSURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP
,Q0D\
WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK&RPP XQLW\+RXVLQJ'HYHORSPHQW &RUSRUDWLRQ
&+'&
LQWKHDPRXQWRI
7KH&+'&KDVGUDZQ
RIWKHORDQIRUWKH
DFTXLVLWLRQRIUHDOSURSHUW\ORFDWHGDW
DQG6 RQRPD%RXOHYDUGLQ9DOOHMRIRU
ORZLQFRPHRZQHURFFXSLHGKRXVLQJSURMHFW7KHORDQWHUPLV VLPSOHLQWHUHVWDQGSULQFLSDO SD\PHQWVDUHGHIHUUHG7KHORDQLVGXHDQGSD\DEOHQRODWHUWKDQ0D\+RZHYHUWKH&LW\ PD\DWLWVRSWLRQH[WHQGWKHQRWHIRUDQDGGLWLRQDOILYH\HDU WHUP V
VXEMHFWWRFRQWLQXLQJ
FRPSOLDQFHZLWKWKH163SURJUDPUHTXLUHPHQWV
9DULRXVORDQVJUDQWHGIRUUHVLGHQWLDOSXUFKDVHDQGUHKDELOL WDWLRQIRUTXDOLI\LQJORZWRPRGHUDWH LQFRPHLQGLYLGXDOVWKURXJKWKH163SURJUDP7KHVHORDQVDUHVHFXUHGE\ILUVWRUVHFRQGPRUWJDJHV RQWKHUHVLGHQWLDOSURSHUW\DQGDUHLQVXUHGE\SULYDWHJXDUDQW\PRUWJDJHLQVXUDQFH7KHWHUPVYDU\ JUHDWO\GHSHQGLQJRQWKHDELOLW\RIWKHSURSHUW\RZQHUWRUHSD\WKHORDQ,QWHUHVWUDWHVRQWKHVHORDQV UDQJHIURPWRDQGWKHSULQFLSDOPDWXULW\GDWHVUDQJH IURP\HDUVWR \HDUV
' *HQHUDO)XQG
,Q'HFHPEHUWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK 9DOOHMR36+/3WRUHFRXS+20( IXQGVGLVDOORZHGE\+8'IRUSURMHFWQRQFRPSOLDQFHIRUWKH%OXH 2DN/DQGLQJSURMHFWDW 6DFUDPHQWR6WUHHW7KHWHUPRIWKHSURPLVVRU\QRWHLV\HDUVDWLQWHUHVWSHUDQQXP
( 6HUHQR9LOODJH$SDUWPHQWV
,Q0D\WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQ WZLWK6HUHQR9LOODJH$VVRFLDWHV IRUWKHGHYHORSPHQWRIDXQLWYHU\ORZLQFRPHUHQWDOKRXVLQJSURMHFW7KHQRWHEHDUVVLPSOH LQWHUHVWDQGZLOOEHGXHLQIXOOWRWKH&LW\LQ\HDUV7KHO RDQLVVHFXUHGE\DGHHGRIWUXVW7R WKHH[WHQWWKHUHLV H[FHVVFDVKIORZIURPWKHSURMHFWWKHGHYH ORSHULVUHTXLUHGWRUHSD\DOO DFFUXHGLQWHUHVWDQGSULQFLSDO DQQXDOO\$W-XQHWKHR XWVWDQGLQJEDODQFHRIWKLVORDQ LQFOXGLQJDFFUXHGLQWHUHVWZDV
FRPSULVHGRIIXQGHGE\WKH*HQHUDO)XQG
DQG
IXQGHG E\ WKH 1HLJKERUKRRG3DUNV&DSLWDO3URMHFW)XQG&LW\PDQDJHPHQWLV ZRUNLQJRQHVWDEOLVKLQJQHZORDQWHUPVZLWKWKHERUURZHU
'XULQJILVFDOWKH9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFWO RDQHGWR6HUHQR9LOODJH $VVRFLDWLRQ7KHORDQLVVHFXUHGE\GHHGRIWUXVWEHDULQJVLPS OHLQWHUHVWDWDQGLWLVGXH LQ\HDUV7KHRXWVWDQGLQJEDODQFHDW-XQHZDV 7KLVEDODQFHUHPDLQV XQFKDQJHGIURPWKHSULRU\HDUDQGPDQDJHPHQWLVZRUNLQJRQHVWD EOLVKLQJQHZORDQWHUPVZLWK 6HUHQR9LOODJH0DQDJHPHQWGHHPVWKLVQRWHDVFROOHFWLEOH
) 7HPSOH$UW/RIW,PSDFW)HH/RDQ
,Q'HFHPEHUWKH&LW\HQWHUHGLQWRD
ORDQDJUHHP HQWZLWK7HPSOH$UW/RIWV
$VVRFLDWHV WR SD\ FHUWDLQ LPSDFW IHHV SHUPLW IHHV DQG DGPLQLVWUDWLYH IHHV IRU WKH 0DULQ6WUHHW3URMHFW7KHORDQEHDUV]HURLQWHUHVWDQG ZLOOEHGXHDQGSD\DEOHLQIXOO XSRQWKH WKDQQLYHUVDU\RIWKHGDWHRIWKH ORDQ ZKLFK LV 'HFHPEHU 7KH ORDQ LV UHFRUGHGLQWKH*HQHUDO)XQGDQGWKH7UDQVSRUWDWLRQ,PSDFW0LWL JDWLRQ)XQG 69 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
* 7UDLOHU&LW\:DWHU/RDQ
,Q$SULOWKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK7UDLOHU&LW\6DOHV&RPSDQ\IRUWKHFRQVWUXFWLRQ RILPSURYHPHQWVDOORZLQJ7UDLOHU&LW\6DOHV&RPSDQ\WREHFRQQHFWHGWRWKH&LW\¶VZDWHU V\VWHP7KHORDQDOVR SURYLGHVDVVLVWDQFHIRUSD\PHQWVRIZDWHUFRQQHFWLRQDQGIDFLOLWLHVIHHV7KHQRWH EHDUV]HURLQWHUHVWDQGZLOOEH GXHLQIXOOWRWKH&LW\LQ\HDUV7KHORDQLVVHFXUHGE\DGHHGRIWUXVW$VRI -XQHWKHORDQZDVIXOO\ SDLG
+ *ROI&DUW6WRUDJH
'XULQJILVFDO\HDUWKH&LW\ORDQHGWR9DOOHMR*ROI&OXE,QFIRUWKHFRQVWUXFWLRQRIDJROIFDUWVWRUDJH EXLOGLQJ'XULQJILVFDO\HDUWKH&LW\HVWDEOLVKHGDQDOORZDQFHIRUFROOHFWDELOLW\HTXDOWRWKHWRWDODPRXQWRZHG RI$W-XQHWKHRXWVWDQGLQJEDODQFHRIWKLVORDQDQGWKHRIIVHWWLQJDOORZDQFHZHUH
, /RQJ7HUP/RDQV±)RUPHU5HGHYHORSPHQW$JHQF\
)URPWRWKH&LW\KDGDGYDQFHG WRWKH9DO OHMR&HQWUDO'HEW6HUYLFH)XQG
ZKLFKWKH $JHQF\LQWXUQORDQHGWR(PSUHVV,QYHVWPHQW)XQG/ /&IRUWKHSXUSRVHRIWKHDWHU LPSURYHPHQWVDQGLQILVFDO\HDUWKH&LW\DGYDQFHGWRWKH0DULQD9LVWD'HEW6HUYLFH )XQGIRUWKH*HRUJLD6WUHHW H[WHQVLRQSURMHFW5HSD\PHQWRIWKHVHORDQVZHUHFRQWLQJHQWXSRQ WKH 6XFFHVVRU $JHQF\ UHFHLYLQJ D)LQGLQJ RI &RPSOHWLRQ DV GHILQHG LQ +HDOWK DQG 6DIHW\ &RGH6HFWLRQ
$IWHUWKH6XFFHVVRU$JHQF\UHFHLYHVD)LQ GLQJRI&RPSOHWLRQXQGHU WKH SURYLVLRQV RI +HDOWK DQG 6DIHW\ &RGH 6HFWLRQ
E
$
WKHORDQVFDQEHUHSDLG
E\WKH6XFFHVVRU$JHQF\+RZHYHUWKH6XFFHVVRU$JHQF\PXVWDSS O\IRUDSSURYDORIWKHORDQV E\WKH2YHUVLJKW%RDUGLQFOXGLQJDILQGLQJWKDWWKHORDQVZHUH IRU OHJLWLPDWHUHGHYHORSPHQW SXUSRVHV
2Q )HEUXDU\ WKH 2YHUVLJKW %RDUG WR WKH 6XFFHVVRU $JHQF\ RI WKH IRUPHU 9DOOHMR5HGHYHORSPHQW$JHQF\DSSURYHGWKHVHSUHGLVVROXWLRQORD QVEHWZHHQWKH&LW\DQGWKH IRUPHU 9DOOHMR 5HGHYHORSPHQW $JHQF\DVHQIRUFHDEOHREOLJDWLRQV7KH'2)DSSURYHGWKHVH ORDQVDVHQIRUFHDEOHREOLJDWLRQVLQ0DUFK
'XULQJWKHHDUO\\HDUVRIWKH$JHQF\
SUH
WKH&LW\DGYDQFHGVWDUWXSIXQGVWRWKH$JHQF\
$VRI -DQXDU\ WKH GDWH RI GLVVROXWLRQ RI WKH IRUPHU 5HGHYHORSPHQW $JHQF\ WKH EDODQFHRIWKHVHDGYDQFHVLQFOXGLQJDFFUXHGLQWHUHVWDWWKDWGDWHWRWDOHG 2Q)HEUXDU\
WKH2YHUVLJKW%RDUGDOVRDSSURYHGWKHVHSUH
ORDQ VEHWZHHQWKH&LW\DQGWKH
IRUPHU 9DOOHMR 5HGHYHORSPHQW$JHQF\DVHQIRUFHDEOHREOLJDWLRQVEXWWKH'2)RYHUWXUQHGWKH DSSURYDO+RZHYHUDFKDQJHLQ+HDOWKDQG6DIHW\&RGH6HFWLRQ GXULQJILVFDO\HDU
SURYLGHGIRUWKHUHHVWDEOLVKPHQWRIWKHVHSULRUORDQVDVHQIRUF HDEOHREOLJDWLRQVVRORQJDVWKH\ ZHUHDSSURYHGE\WKH2YHUVLJKW%RDUG2Q-DQXDU\ WKH 2YHUVLJKW %RDUG SDVVHG UHVROXWLRQ2%WRUHDIILUPLWVDSSURYDORIWKH3UH
O RDQV
+RZHYHUWKH'2)FRQWLQXHGWRGHQ\DSSURYDORIWKHSUH
ORD QVDVHQIRUFHDEOHREOLJDWLRQV
GXULQJWKH5HFRJQL]HG2EOLJDWLRQ3D\PHQW6FKHGXOH
5236
SURFHV V'XHWRWKHXQFHUWDLQW\RI
6WDWHDSSURYDOWKH&LW\UHSRUWV WKHVH ORDQV WKHLU IXOOYDOXHRI
ZLWKDQRIIVHWWLQJ
DOORZDQFHDVRI-XQH
70 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
127(6 /2$165(&(,9$%/(
&217,18('
7KHORDQEDODQFHVDVRI-XQHDUHDVIROORZV
7KH ORDQV EHDU VLPSOH LQWHUHVW RI 5HSD\PHQW RI WKHVH ORDQVLV JRYHUQHG E\+HDOWK DQG 6DIHW\ &RGH 6HFWLRQ
H
DQGWKHPD[LPXPDQQXDOUHSD\PHQWLVOLPLWHG EDVHGRQFDOFXODWLRQVLQWKDW&RGH6HFWLRQ 5HSD\PHQWLQVWDOOPHQWVZHUHDSSURYHGE\WKH6WDWH'HSDUWPHQWRI)LQDQFHVWDUWLQJILVFDO\HDUWKURXJKWKH DQQXDO5236SURFHVV
- 9):'(PSOR\HH&RPSXWHU/RDQV
9):'KDVD&RPSXWHU/LWHUDF\SURJUDPWKDWDOORZVHPSOR\HHVWRE RUURZLQDQDPRXQWDSSURYHGE\WKH 'LVWULFW0DQDJHUWRSXUFKDVHSHUVRQDOFRPSXWHUV7KHSULQFLSDOEDODQFHDPRXQWZLWKWKHUDWHRILQWHUHVWHTXDOWR WKHUDWHRILQWHUHVWEHLQJHDUQHGE\9):'WKDWVKDOOQRWH[FHHG LVWREHSDLGRIIZLWKLQPRQWKVIURPWKH
GDWHRIWKHORDQ
127(
/($6(6$1'68%6&5,37,21%$6(',1)250$7,217(&+12/2*<$5 5$1*(0(176
&LW\DQG+RXVLQJ$XWKRULW\
$ /HDVH5HFHLYDEOHDQG,QIORZVRI5HVRXUFHV
7KH&LW\DVDOHVVRUKDGHQWHUHGLQWROHDVHDJUHHPHQWVLQYROYLQJODQGRIILFHVSDFHDQGIDFLOLWLHV2XWRIWKHVH DUHTXDOLILHGOHDVHVXQGHU*$6%6WDWHPHQW1R7KHUHODWH GUHFHLYDEOHVRIWKHVHOHDVHVZHUHLQLWLDOO\ PHDVXUHGRQ-XO\ZLWKWKH&LW\¶VDGRSWLRQRIWKHQHZOHDVHVWDQGDUGV7KH&LW\DOVRKDGLQIORZVRIUHVRXUFHV GXULQJWKHILVFDO\HDUWRWDOLQJ7KLVWRWDOLQFOXGHV
RIOHDVHUHYHQXHRILQWHUHVWUHYHQXH
DQGRIYDULDEOHDQGRWKHUSD\PHQWVH[FOXGHGLQWKHLQLWLDOPHDVXUHPHQWRIWKHOHDVHUHFHLYDEOHV
7KHIROORZLQJLVDVXPPDU\RIWKHTXDOLILHGOHDVHVDQGGHVFULSWLRQRIWKHOHDVHDUUDQJHPHQWVDQGWKHEDODQFHRI WKHGHIHUUHGLQIORZRIUHVRXUFHVDVVRFLDWHGZLWKWKHOHDVHVLV
/DQG/HDVHV7KH&LW\LVWKHOHVVRUIRUJURXQGOHDVHDJUHHPHQWVUHODWHGWRODQGLQFOXGLQJUDLOURDGWUDFNFHUWDLQ WLGHDQGVXEPHUJHGODQGVZLWKYDULHGWHUPVDQGWKHODWHVWH[SLU LQJRQ6HSWHPEHU,QWHUHVWUDWHVYDU\ EHWZHHQ
WR7RWDOSD\PHQWVIRUWKHFXUUHQW\HDUUDQJHGIURPWR
3ULQFLSDO $FFUXHG,QWHUHVW 7RWDO
:DWHUIURQW
0DULQD9LVWD
&HQWUDO
/HVV$OORZDQFHIRU'RXEWIXO$FFRXQWV
+LGGHQEURRNH2YHUSDVV&DSLWDO3URMHFWV)XQG
%ULGJH&RQVWUXFWLRQ&DSLWDO3URMHFWV)XQG
$UWVDQG&RQYHQWLRQ&HQWHU&DSLWDO3URMHFWV)XQG
*HQHUDO)XQG
%DODQFH 3ULQFLSDO %DODQFH /HDVH ,QWHUHVW 9DULDEOH
/HDVH DW 3D\PHQWV DW 5HYHQXH 5HYHQXH 3D\PHQWV /DQG
2IILFHDQG5HODWHG6SDFH
7HOHFRPPXQLFDWLRQV
7RWDO
/HDVH5HFHLYDEOH ,QIORZVRI5HVRXUFHV
71 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/($6(6$1'68%6&5,37,21%$6(',1)250$7,217(&+12/2*<$5 5$1*(0(176
&217,18('
2IILFH DQG 5HODWHG 6SDFH /HDVH 2Q -XO\ WKH &LW\ DVVXPHG WKH H[LVWLQJ DJUHHPHQW EHWZHHQ $OVDWLRQ/DQG&RPSDQ\9DOOHMR//&DQG9HWHUDQ¶V$GPLQLVWUDWLRQ IRUWKHOHDVHRIRIILFHDQGUHODWHGVSDFHLQ 0DUH,VODQG:D\7KHOHDVHLVIRUWZHQW\\HDUVZKLFKLQFOXGHVDWHUPLQDWLRQRSWLRQWKDWWKH&LW\LVUHDVRQDEO\ FHUWDLQZLOOEHH[HUFLVHGE\OHVVHHDIWHUWKHWHQ\HDUILUPWHUPHQGGDWHLQ,QWHUHVWUDWHLV7RWDOPRQWKO\ SD\PHQWVUHFHLYHGIRUWKHFXUUHQW\HDUZDV
7HOHFRPPXQLFDWLRQ/HDVHV7KH&LW\HQWHUHGLQWROHDVHDJUHH PHQWVZLWKZLUHOHVVSURYLGHUV $7 79HUL]RQ
70RELOH0RELOLWLH
UHODWHGWRWHOHFRPPXQLFDWLRQV7KHVHDJUHH PHQWVDUHIRUWKHLQVWDOODWLRQRSHUDWLRQDQG PDLQWHQDQFHRIWHOHFRPPXQLFDWLRQVLWHVPRXQWLQJVWUXFWXUHVDQGHTXLSPHQWDVVRFLDWHGZLWKWKHWUDQVPLVVLRQDQG UHFHSWLRQRIUDGLRFRPPXQLFDWLRQVLJQDOV7KHVHDJUHHPHQWVDUHDOOTXDOLILHGOHDVHVXQGHU*$6%6WDWHPHQW1R ZLWKSHULRGVFRYHULQJYDULRXVUDQJHVDQGWKHODWHVWH[SLULQJRQ)HEUXDU\,QWHUHVWUDWHVUDQJHIURP WR
7RWDOSD\PHQWVIRUWKHFXUUHQW\HDUYDULHGIURPWR
)XWXUHDQQXDOOHDVHUHFHLYDEOHVDVRI-XQHDUHDVIROORZV
7KHUHPDLQLQJDJUHHPHQWVWKDWDUHQRWTXDOLILHGXQGHU*$6%6WDWHPHQW1RDUHHLWKHUVKRUWWHUPLQQDWXUH GRQRWPHHWWKH&LW\¶VWKUHVKROGRURXWVLGHWKHVFRSHRIWKHVWDQGDUG7KHVHQRQTXDOLILHGOHDVHDJUHHPHQWVKDYH QRWEHHQUHFRJQL]HGDQGPHDVXUHGDVSDUWRIWKH&LW\¶VOHDVHUH FHLYDEOHDQGWKHUHFHLSWVUHODWHGWRWKHVH DJUHHPHQWVDUHUHFRJQL]HGDVUHYHQXHDVDSSURSULDWHXQGHUVWDQGDUG*$$3UHYHQXHUHFRJQLWLRQUXOHV
3ULQFLSDO ,QWHUHVW 7RWDO
7RWDO
*RYHUQPHQWDO$FWLYLWLHV
)LVFDO<HDU(QGHG
72 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/($6(6 $1' 68%6&5,37,21%$6(' ,1)250$7,21 7(&+12/2*< $5 5$1*(0(176
&217,18('
9):'
7KH'LVWULFWKDVHQWHUHGLQWRDOHDVHDJUHHPHQWZLWK1HZ,QVSLUDWLRQ%URDGFDVWLQJ&RPSDQ\,QFIRUFHUWDLQODQG RQ7XEEV,VODQG&DOLIRUQLDIRUXVHDVDWRZHUVLWH7KHWHUPV RIWKLVDJUHHPHQWLQFOXGHPRQWKO\UHQWDOSD\PHQWV LQFUHDVLQJ DQQXDOO\ EDVHG RQ WKH &RQVXPHU 3ULFH ,QGH[ &3,
IRU DOO 8UEDQ &RQVXPHUV IRU WKH
6DQ)UDQFLVFR2DNODQG6DQ-RVH0HWURSROLWDQ$UHDSXEOLVKHGE\W KH8QLWHG6WDWHV'HSDUWPHQWRI/DERU7KLV OHDVHFRPPHQFHGRQ$SULO7KHOHDVHUHFHLYDEOHZDVGLVF RXQWHGWRDQHWSUHVHQWYDOXHRI$SULO XVLQJDLQWHUHVWUDWHDQG&3,LQFUHDVHRISHU\HDU) RUWKH\HDUHQGHG-XQHWKH'LVWULFW UHFHLYHG
LQOHDVHUHYHQXHDQGLQOHDVHLQWHUHVWUHYHQXH)XWXUHSD\PHQWVGXHWRWKH'LVWULFWXQGHU WKHQRQFDQFHOODEOHDJUHHPHQWDUHDVIROORZVIRUWKH\HDUHQGHG-XQH
$OVRWKH'LVWULFWKDVDGHIHUUHGLQIORZRIUHVRXUFHVDVVRFLDWHGZLWKWKLVOHDVHWKDWZLOOEHUHFRJQL]HGDVUHYHQXH RYHUWKHOHDVHWHUP$VRI-XQHWKHEDODQFHRIWKHGHIHUUHGLQIORZZDV
% /HDVH3D\DEOH
/HDVHDJUHHPHQWVDUHVXPPDUL]HGDVIROORZV
'XULQJ)<WKH&LW\RI9DOOHMRIXOO\DGRSWHGDQGLPSOHPHQWHG*$6%VWDQGDUGLQZKLFKWKH&LW\UHFRJQL]HV OHDVHG HTXLSPHQW OHDVH OLDELOLW\ DQG D OHDVH DVVHW /HDVHG HTXLSPHQW LQFOXGHV WZR 31& DJUHHPHQWV IRU *ROI&DUWVIRUWHUPRIFRPELQHGPRQWKVZLWKDIL[HGLQWHU HVWUDWH&LW\DOVRKDVOHDVHDJUHHPHQWVZLWK ;HUR[&RPSDQ\IRUWHQFRSLHUVZLWKWHUPLQPRQWKVUDQJLQJIURP IRUDFRPELQHGWRWDORIPRQWKVZLWKIL[HG
LQWHUHVWUDQJLQJIURPWR,QDGGLWLRQWKH&LW\KDV OHDVHVZLWK0HVVHUDQG7ULPEOHHTXLSPHQWIRU :DWHU'HSDUWPHQWZLWKPRQWKWHUPIRUDFRPELQHGWRWDORIPRQWKVZLWKDIL[HGLQWHUHVWUDWH )LVFDO<HDU(QGHG
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
7RWDO
3D\PHQW 7RWDO
7HUPV LQ0RQWKV 3D\PHQW ,QWHUHV W %HJLQQLQJ %DODQFH
'HV FULSWLRQ 'DWH &RPELQHG $PRXQW 5DWH $GGLWLRQV /HDV H/LDELOLW\ -XQH *RYHUQPHQWDO$FWLYLWLHV
(TXLSPHQW&RSLHUV;HUR[
(TXLSPHQW*ROI&DUW 7RWDO*RYHUQPHQWDO$FWLYLWLHV %XV LQHV V 7\SH$FWLYLWLHV
(TXLSPHQW&RSLHUV;HUR[
(TXLSPHQW*ROI&DUW
(TXLSPHQW7ULPEOH
(TXLSPHQW0HVVHU
7RWDO%XV LQHV V 7\SH$FWLYLWLHV
7RWDO
73 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/($6(6 $1' 68%6&5,37,21%$6(' ,1)250$7,21 7(&+12/2*< $5 5$1*(0(176
&217,18('
$QQXDOUHTXLUHPHQWVWRDPRUWL]HORQJWHUPOHDVHREOLJDWLRQVDQGUHODWHGLQWHUHVWDUHDVIROORZV
& 6XEVFULSWLRQ%DVHG,QIRUPDWLRQ7HFKQRORJ\$UUDQJHPHQWV
7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1R
LQWKHILVFDO\HDUH QGHG-XQH7KHSULPDU\REMHFWLYHRI WKLVVWDWHPHQWLVWRHQKDQFHWKHUHOHYDQFHDQGFRQVLVWHQF\RIL QIRUPDWLRQDERXWJRYHUQPHQWV VXEVFULSWLRQ
EDVHGLQIRUPDWLRQWHFKQRORJ\DUUDQJHPHQW
6%,7$
DFWLYLWLHV7KLVVWDWHPHQWHVWDEOLVKHVDVLQJOHPRGHOIRU6%,7$ DFFRXQWLQJEDVHGRQWKHSULQFLSOHWKDW6%,7$VDUHILQDQFLQJVRI WKHULJKWWRXVHDQXQGHUO\LQJDVVHW8QGHUWKLV 6WDWHPHQWDVXEVFULEHULVUHTXLUHGWRUHFRJQL]HDVXEVFULSWLRQOLDELOLW\DQGDQLQWDQJLEOHULJKWWRXVHVXEVFULSWLRQ DVVHW)RUDGGLWLRQDOLQIRUPDWLRQUHIHUWRWKHGLVFORVXUHVEHORZ
7KH&LW\KDVHQWHUHGLQWRYDULRXV6%,7$VDVWKHVXEVFULEHUIRUWKHXVHRIVRIWZDUHVROXWLRQ$QLQLWLDOVXEVFULSWLRQ OLDELOLW\ZDVUHFRUGHGLQWKHDPRXQWRIGXULQJWKHF XUUHQWILVFDO\HDU7KHVXEVFULSWLRQOLDELOLW\UDQJH IURPWR
$VRI-XQHWKHWRWDOYDOXHRIWKHVXEVFULSWLRQOLDELOLW\ZDV 7KH&LW\
LVUHTXLUHGWRPDNHPRQWKO\SULQFLSDODQGLQWHUHVWSD\PHQWVRIUDQJLQJIURPWR7KHVXEVFULSWLRQV KDYHLQWHUHVWUDWHVUDQJLQJIURP
WR,QIRUPDWLRQRQ WKHVXEVFULSWLRQDVVHWVDVRI-XQHDUH DVIROORZV
(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO 3ULQFLSDO
7RWDOV
%XVLQHVVW\SH$FWLYLWLHV 7RWDO*RYHUQPHQWDO$FWLYLWLHV
$PRXQWRI
6%,7$&DSLWDO $FFXPXODWHG
6XEVFULSWLRQ7\SH $VVHWV $PRUWL]DWLRQ
6RIWZDUHDVDVHUYLFH 6XEWRWDOJRYHUQPHQWDODFWLYLWLHV $PRXQWRI
6%,7$&DSLWDO $FFXPXODWHG
6XEVFULSWLRQ7\SH $VVHWV $PRUWL]DWLRQ
6RIWZDUHDVDVHUYLFH
6XEWRWDOEXVLQHVVW\SHDFWLYLWLHV
7RWDO
*RYHUQPHQWDO$FWLYLWLHV
%XVLQHVVW\SH$FWLYLWLHV
74 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/($6(6 $1' 68%6&5,37,21%$6(' ,1)250$7,21 7(&+12/2*< $5 5$1*(0(176
&217,18('
7KH&LW\UHFRJQL]HGIRUYDULDEOHDQGRWKHUSD\PHQWVLQFOXGLQJVKRUWWHUPVXEVFULSWLRQVQRWLQFOXGHGLQ WKHPHDVXUHPHQWRIWKHVXEVFULSWLRQOLDELOLW\7KHIXWXUHSULQF LSDODQGLQWHUHVWVXEVFULSWLRQSD\PHQWVDVRI -XQHZHUHDVIROORZV
127(
&$3,7$/$66(76
$OOFDSLWDODVVHWVDUHYDOXHGDWKLVWRULFDOFRVWRUHVWLPDWHGK LVWRULFDOFRVWLIDFWXDOKLVWRULFDOFRVWLVQRW DYDLODEOH &RQWULEXWHGFDSLWDODVVHWVDUHYDOXHGDWWKHLUHVWLPDWHGDFTXLV LWLRQYDOXHRQWKHGDWHFRQWULEXWHG
&DSLWDODVVHWVZLWKOLPLWHGXVHIXOOLYHVDUHGHSUHFLDWHGRYHUW KHLUHVWLPDWHGXVHIXOOLYHV7KHDPRXQWFKDUJHG WRGHSUHFLDWLRQH[SHQVHHDFK\HDUUHSUHVHQWVWKDW\HDU¶VSURUD WDVKDUHRIWKHFRVWRIFDSLWDODVVHWV
'HSUHFLDWLRQLVGHWHUPLQHGXVLQJWKHKDOI\HDUFRQYHQWLRQPHWKR GZKLFKPHDQVWKHFRVWRIWKHDVVHWLVGLYLGHG E\LWVH[SHFWHGXVHIXOOLIHLQ\HDUVDQGWKHUHVXOWLVFKDUJHG WRH[SHQVHHDFK\HDUEXWRQO\KDOIRI WKHIXOO\HDU GHSUHFLDWLRQLVFKDUJHGLQWKHILUVW\HDUZKLOHWKHRWKHUKDOI LVFKDUJHGLQWKHODVW\HDURI GHSUHFLDWLRQRULQWKH \HDUWKHDVVHWLVVROGRUUHWLUHG
7KH&LW\KDVDVVLJQHGWKHXVHIXOOLYHVDQGFDSLWDOL]DWLRQWKUHVKROGVOLVWHGEHORZWRFDSLWDODVVHWV
)LVFDO<HDU
(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW
7RWDOV
*RYHUQPHQWDO$FWLYLWLHV %XVLQHVVW\SH$FWLYLWLHV 7RWDO
8VHIXO/LYHV
&DSLWDOL]DWLRQ
7KUHVKROG
/DQG 1$ &DSLWDOL]H$OO
(DVHPHQWV 1$
/DQG,PSURYHPHQWV WR<HDUV
%XLOGLQJVDQG,PSURYHPHQWV WR<HDUV 0DFKLQHU\DQG(TXLSPHQW WR<HDUV ,QWHUQDOO\'HYHORSHG6RIWZDUH WR<HDUV 3XUFKDVHG6RIWZDUH WR<HDUV
5LJKWWRXVHDVVHWV
VKRUWHURIWKHOHDVHWHUPRU\HDUV 6XEVFULSWLRQDVVHWV 6KRUWHURIVXEVFULSWLRQWHUPRU\HDUV ,QIUDVWUXFWXUH
7UDIILF6LJQDOV WR<HDUV
6WUHHW/LJKWV WR<HDUV
%ULGJHVDQG&XOYHUWV WR<HDUV
6LGHZDONV&XUEVDQG*XWWHUV WR<HDUV 6WUHHWVDQG5RDGV WR<HDUV
0DFKLQHU\DQG(TXLSPHQW
75 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$3,7$/$66(76
&217,18('
,PSURYHPHQWVWRH[LVWLQJLQIUDVWUXFWXUHDVVHWVLQH[FHVVRIDUHFDSLWDOL]HGLI WKHHVWLPDWHGXVHIXOOLIHRI
WKHH[LVWLQJDVVHWKDVEHHQH[WHQGHGE\DWOHDVW
RUWKHFDSDFLW\RIWKHH[LVWLQJDVVHWKDVEHHQVXEVWDQWLDOO\
LPSURYHG
RUWKHTXDOLW\RIWKHRXWSXWRIWKHH[LVWLQJDVVHWKDVEHHQVXEVWDQWLDOO\LPSURYHG
7KH9):'FDSLWDOL]HVDSSOLFDEOHDVVHWVJUHDWHUWKDQDQGWKH9):'KDVDVVLJQHGWKHXVHIXOOLYHVOLVWHG EHORZWRFDSLWDODVVHWV
:DVWHZDWHU7UHDWPHQW3ODQWDQG)DFLOLWLHV WR<HDUV :DVWHZDWHUDQG6WRUP:DUP3XPS6WDWLRQV WR<HDUV
:DVWHZDWHU&ROOHFWLRQDQG6WRUP:DWHU7UDQVPLVVLRQV6\VWHQV WR <HDUV %XLOGLQJVDQG,PSURYHPHQWV WR<HDUV
0DFKLQHU\DQG(TXLSPHQW WR<HDUV
5LJKWRIXVHOHDVHDVVHWV WR<HDUV
0DMRURXWOD\VIRUFDSLWDODVVHWVDQGLPSURYHPHQWVDUHFDSLWDOL] HGDVSURMHFWVDUHFRQVWUXFWHG,QWHUHVWLQFXUUHG GXULQJWKHFRQVWUXFWLRQSKDVHLVUHIOHFWHGLQWKHFDSLWDOL]HGY DOXHRIWKHDVVHWFRQVWUXFWHGQHWRI LQWHUHVWHDUQHG RQWKHLQYHVWHGSURFHHGVRYHUWKHVDPHSHULRG
$ *RYHUQPHQW&DSLWDO$VVHW$FWLYLW\
%DODQFH %DODQFH
-XO\ $GMXVWPHQWV $GGLWLRQV 'HOHWLRQV 7UDQVIHUV -XQH *RYHUQPHQWDODFWLYLWLHV
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG
/DQG
&RQVWUXFWLRQLQSURJUHVV
6XEVFULSWLRQLQSURJUHVV
7RWDOFDSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG
&DSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG
%XLOGLQJVDQG,PSURYHPHQWV
0DFKLQHU\DQGHTXLSPHQW
,QIUDVWUXFWXUH
/HDVH$VVHWV
6XEVFULSWLRQDVVHWV
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG
/HVVDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
%XLOGLQJVDQG,PSURYHPHQWV
0DFKLQHU\DQGHTXLSPHQW
,QIUDVWUXFWXUH
/HDVH$VVHWV
6XEVFULSWLRQDVVHWV
7RWDODFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HGQHW
7RWDOJRYHUQPHQWDODFWLYLWLHVFDSLWDODVVHWV
7UDQVIHUVRI
LVUHODWHGWRWUDQVIHURIDVVHWEHWZHHQWKHJRYHUQPHQWDODQGEXVLQHVVW\SHIXQGV
6XEVFULSWLRQLQSURJUHVVLQOLQHZLWK*$6%
LPSOHPHQWDWLRQLQ)<
$GMXVWPHQWVDUHWRSUHVHQWLPSOHPHQWDWLRQRI*$6%6WDWHPHQW1R H[FOXGLQJDSSOLFDEOH6%,7$VHQWHUHGLQWRGXULQJWKHILVFDO\HDU 7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1R
LQWKHILVFDO\HDUHQGHG-XQHZKLFKUHFRUGVWKHYDOXHRIDULJKWWRXVHVXEVFULSWLRQDVVHW$VRI -XQHWKH&LW\KDVUHFRUGHGDVXEVFULSWLRQLQSURJUHVVXQGHUWKHLUDVVHWVIRU DVSDUWRIWKHLU1H[*HQDQG1HZ(53VRIWZDUH
LPSOHPHQWDWLRQ7KLVLVWKHLQLWLDO6%,7$DFWLYLW\IRUILVFDO\HDUDVWKHIXOOVRIWZDUHKDVQRWEHHQLPSOHPHQWHG 76 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$3,7$/$66(76
&217,18('
% %XVLQHVV7\SH&DSLWDO$VVHW$FWLYLW\
& 9):'&DSLWDO$VVHW$FWLYLW\
%DODQFH %DODQFH
-XO\ $GMXVWPHQWV $GGLWLRQV 'HOHWLRQV 7UDQVIHUV -XQH %XVLQHVVW\SHDFWLYLWLHV
&DSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG
/DQG
&RQVWUXFWLRQLQSURJUHVV 6XEVFULSWLRQLQSURJUHVV
7RWDOFDSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]HG
&DSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG
%XLOGLQJVDQG,PSURYHPHQWV
0DFKLQHU\DQG(TXLSPHQW
,QIUDVWUXFWXUH /HDVH$VVHWV 6XEVFULSWLRQDVVHWV
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HG
/HVVDFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
%XLOGLQJVDQG,PSURYHPHQWV
0DFKLQHU\DQG(TXLSPHQW
,QIUDVWUXFWXUH
/HDVH$VVHWV
6XEVFULSWLRQDVVHWV
7RWDODFFXPXODWHGGHSUHFLDWLRQDPRUWL]DWLRQ
7RWDOFDSLWDODVVHWVEHLQJGHSUHFLDWHGDPRUWL]HGQHW
7RWDOEXVLQHVVW\SHDFWLYLWLHVFDSLWDODVVHWV
%DODQFHDW
-XQH $GGLWLRQV 5HWLUHPHQWV 7UDQVIHUV
%DODQFHDW
-XQH
0DFKLQHU\HTXLSPHQWYHKLFOHV
&DSLWDO$VVHWV1RW%HLQJ'HSUHFLDWHG
/DQG
&RQVWUXFWLRQLQ3URJUHVV
7RWDO&DSLWDO$VVHWV1RW%HLQJ'HSUHFLDWHG
&DSLWDO$VVHWV%HLQJ'HSUHFLDWHG
%XLOGLQJVDQG,PSURYHPHQWV
3XPSVWDWLRQV
3ODQWDQGIDFLOLWLHV
&ROOHFWLRQV\VWHPV
&ROOHFWLRQV\VWHPVFRQFDS
3ODQWDQGIDFLOLWLHVFRQFDS
5LJKWWRXVHOHDVHDVVHWV
7RWDO&DSLWDO$VVHWV%HLQJ'HSUHFLDWHG$PRUWL]HG
/HVV$FFXPXODWHG'HSUHFLDWLRQIRU
%XLOGLQJVDQG,PSURYHPHQWV
3XPSVWDWLRQV
1HW&DSLWDO$VVHWV%HLQJ'HSUHFLDWHG$PRUWL]HG
&DSLWDO$VVHWV1HW
5LJKWWRXVHVXEVFULSWLRQDVVHWV
5LJKWWRXVHOHDVHDVVHWV
&ROOHFWLRQV\VWHPV
&ROOHFWLRQV\VWHPVFRQFDS
3ODQWDQGIDFLOLWLHVFRQFDS
0DFKLQHU\HTXLSPHQWYHKLFOHV
5LJKWWRXVHVXEVFULSWLRQDVVHWV
7RWDO$FFXPXODWHG'HSUHFLDWLRQ
3ODQWDQGIDFLOLWLHV
77 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&$3,7$/$66(76
&217,18('
' 'HSUHFLDWLRQDQG$PRUWL]DWLRQ$OORFDWLRQ
'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHZDVFKDUJHGWRIXQFWLRQVDQGSURJUDPVEDVHGRQWKHLUXVDJHRIWKHUHODWHG DVVHWV7KH DPRXQWVDOORFDWHGWRHDFKIXQFWLRQZHUHDVIROORZV
127(
/21*7(50'(%7
7KH&LW\JHQHUDOO\LQFXUVORQJWHUPGHEWWRILQDQFHSURMHFWVRUSXUFKDVHDVVHWVZKLFKZLOOKDYHXVHIXOOLYHVHTXDO WRRUJUHDWHUWKDQWKHUHODWHGGHEW
)RUJRYHUQPHQWDOIXQGW\SHVERQGSUHPLXPVDQGGLVFRXQWVDVZH OODVLVVXDQFHFRVWVDUHUHFRJQL]HGGXULQJ WKHFXUUHQWSHULRG%RQGSURFHHGVDUHUHSRUWHGDVDQRWKHUILQDQ FLQJVRXUFHJURVVRIWKHDSSOLFDEOHSUHPLXPRU GLVFRXQW,VVXDQFHFRVWVHYHQLIZLWKKHOGIURPWKHDFWXDOQHW SURFHHGVUHFHLYHGDUHUHSRUWHGDVGHEWVHUYLFH H[SHQGLWXUHV
)RUSURSULHWDU\IXQGW\SHVERQGSUHPLXPVDQGGLVFRXQWVDUHGHI HUUHGDQGDPRUWL]HGRYHUWKHOLIHRIWKHERQGV XVLQJWKHHIIHFWLYHLQWHUHVWPHWKRG%RQGVSD\DEOHDUHUHSRUWHGQHWRIWKHDSSOLFDEOHERQGSUHPLXPRUGLVFRXQW %RQGLVVXDQFHFRVWVDUHH[SHQVHGLQWKH\HDULQFXUUHG$Q\GLII HUHQFHVEHWZHHQSURSULHWDU\UHIXQGHGGHEWDQG WKHGHEWLVVXHGWRUHIXQGLWLVUHFRUGHGDV'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHVDQGDPRUWL]HGRYHUWKHUHPDLQLQJ OLIHRIHLWKHUWKHUHIXQGHGGHEWRUWKHUHIXQGLQJGHEWZKLFKHYHULVVKRUWHU *RYHUQPHQWDO$FWLYLWLHV
([HFXWLYH
)LQDQFH
&RPPXQLW\'HYHORSPHQW
)LUH6HUYLFHV
3ROLFH6HUYLFHV
3XEOLF:RUNV
,QWHUQDO6HUYLFH
7RWDOGHSUHFLDWLRQDPRUWL]DWLRQH[SHQVH
%XV LQHV V 7\SH$FWLYLWLHV
:DWHU
0DULQD
*ROI
3DUNLQJ
)LEHU
7RWDOGHSUHFLDWLRQDPRUWL]DWLRQH[SHQVH
78 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
$ &XUUHQW<HDU7UDQVDFWLRQVDQG%DODQFHV
7KH&LW\¶VORQJWHUPGHEWLVVXHVDQGWUDQVDFWLRQVZHUHDVIROORZV
2ULJLQDO,VVXH
$PRXQW
%DODQFHDW
-XQH $GGLWLRQV 5HWLUHPHQWV
%DODQFHDW
-XQH &XUUHQW3RUWLRQ
*RYHUQPHQWDO$FWLYLW\'HEW
&HUWLILFDWHVRI3DUWLFLSDWLRQ
&23V
5HVWUXFWXUHGVHH1RWH&
7RWDO&HUWLILFDWHVRI3DUWLFLSDWLRQ
*RYHUQPHQWDO$FWLYLW\'HEW'LUHFW%RUURZLQJ
&23V6KRUWIDOO,QGHEWHGQHVV
5HVWUXFWXUHGVHH1RWH&
8%2&5HLPEXUV HPHQW2EOLJDWLRQV
8%2&7UDQFKH$*HQHUDO)XQG
8%2&7UDQFKH%*HQHUDO)XQG
/RDQ3ULQFLSDO
$FFUHWHG,QWHUHVW
%DQNRI$PHULFD)OHHW/RDQ 7RWDO/RDQV 1RWH3D\DEOH
)LQDQFHG3XUFKDVHV
0RWRUROD(TXLSPHQW/HDVH
3ROLFH
7RWDO)LQDQFHG3XUFKDVHV
+RXV LQJ 8UEDQ 'HYHORSPHQW 6HFWLRQ
/RDQ
9DULDEOHGXH
7RWDO'LUHFW%RUURZLQJV
7RWDO*RYHUQPHQWDO$FWLYLW\'HEW
79 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
2ULJLQDO,VVXH
$PRXQW
%DODQFHDW
-XQH $GGLWLRQV 5HWLUHPHQWV
%DODQFHDW
-XQH &XUUHQW3RUWLRQ
/RDQ3ULQFLSDO
/RDQ3ULQFLSDO
%XVLQHVV7\SH$FWLYLW\'HEW
5HYHQXH%RQGV
$FFUHWHG,QWHUHVW
$:DWHU5HYHQXH5HIXQGLQJ%RQGVGXH
3OXV
8QDPRUWL]HG%RQG3UHPLXP
%:DWHU5HYHQXH5HIXQGLQJ%RQGVYDUUDWHGXH $:DWHU5HYHQXH%RQGVYDUUDWHGXH
3OXV
8QDPRUWL]HG%RQG3UHPLXP
7RWDO5HYHQXH%RQGV
%XV LQHV V $FWLYLW\'HEW'LUHFW%RUURZLQJ
8%2&5HLPEXUV HPHQW2EOLJDWLRQV
8%2&7UDQFKH$*ROI&RXUVH
8%2&7UDQFKH$0DULQD
8%2&7UDQFKH%*ROI&RXUVH
7RWDO'LUHFW%RUURZLQJV
7RWDO%XVLQHVV $FWLYLW\'HEW
8%2&7UDQFKH%0DULQD
$FFUHWHG,QWHUHVW
2WKHU/RDQV 1RWHV 3D\DEOH
6WDWH6DIH'ULQNLQJ:DWHUGXH
2ULJLQDO,VVXH
$PRXQW
%DODQFHDW
-XQH $GGLWLRQV 5HWLUHPHQWV
%DODQFHDW
-XQH &XUUHQW3RUWLRQ
/HDVHOLDELOLW\
7RWDO/RDQV 1RWHV3D\DEOH
7RWDO9):''HEW
6XEVFULSWLRQOLDELOLW\
2WKHU/RDQV 1RWHV3D\DEOH'LUHFW%RUURZLQJV
6WDWH&OHDQ:DWHU
GXH
6WDWH&OHDQ:DWHU
GXH
6WDWH5HYROYLQJ)XQG/RDQ
9):'
5HYHQXH%RQGV
5HYHQXH%RQGVGXH
5HYHQXH%RQGVGXH
7RWDO5HYHQXH%RQGV
80 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
% 'HEW6HUYLFH5HTXLUHPHQWV
$QQXDOGHEWVHUYLFHUHTXLUHPHQWVWRPDWXULW\DUHVKRZQEHORZIRUDOOORQJWHUPGHEW
)RUWKH<HDU
(QGLQJ-XQH 3ULQFLSDO ,QWHUHVW 3ULQFLSDO
D
,QWHUHVW
7RWDO
)RUWKH<HDU
(QGLQJ-XQH 3ULQFLSDO ,QWHUHVW 3ULQFLSDO
D
,QWHUHVW
7RWDO 3OXV
8QDPRUWL]HG
%RQG3UHPLXP
GLVFRXQW
1HW/RQJ7HUP'HEW
D
,QFOXGHV DFFUHWHG LQWHUHVW RQ WKH 8%2& 5HWLUHPHQW 2EOLJDWLRQV 7UDQFKH %IRU
*RYHUQPHQWDO$FWLYLWLHV
&23V 'LUHFW%RUURZLQJV
D
,QFOXGHV DFFUHWHG LQWHUHVW RQ WKH 8%2& 5HWLUHPHQW 2EOLJDWLRQV 7UDQFKH %IRU
%XVLQHVV7\SH$FWLYLWLHV
5HYHQXH%RQGV 'LUHFW%RUURZLQJV
81 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
& &HUWLILFDWHVRI3DUWLFLSDWLRQ
&23V
&23V ± ,Q -XO\
WKH &LW\ LVVXHG RI &HUWLILFDWHV RI 3DUWLFLSDWLRQ
&DSLWDO
,PSURYHPHQWV3URMHFW
WRILQDQFH&LW\FDSLWDOLPSURYHPHQWV3ULQFLSDOSD\PHQWVDUHSD\DEOHDQQXDOO\RQ-XO\ ,QWHUHVWSD\PHQWVDUHGXHVHPLDQQXDOO\RQ-DQXDU\DQG-XO\
'XH WR WKH IDLOXUH RI WKH &LW\ WR SD\ WKH VFKHGXOHG DPRXQWV GXH XQGHU WKH RULJLQDO DJUHHPHQW RQ -DQXDU\WKH&LW\1DWLRQDO3XEOLF)LQDQFH*XDUDQWHH& RUSRUDWLRQ 1DWLRQDO
DQGWKH&RQWUROOHUIRUWKH
6WDWHRI&DOLIRUQLD
WKH³&RQWUROOHU´
HQWHUHGLQWRD6HWWOHPHQW$JUHHPHQW
WKH6HWWOHPHQW$JUHHPHQW
)RUWKH<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW
7RWDO 3OXV
8QDPRUWL]HG %RQG
3UHPLXP
GLVFRXQW
1HW/RQJ7HUP'HEW
6WDWH5HYROYLQJ)XQG/RDQ
9):'
5HYHQXH%RQGVDQG
&HUWLILFDWHVRI3DUWLFLSDWLRQ 'LUHFW%RUURZLQ JV
)RUWKH<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
7RWDO
9):'
/HDVHV
)RUWKH<HDU(QGLQJ
-XQH 3ULQFLSDO ,QWHUHVW 7RWDO
7RWDO
9):'
6%,7$V
82 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
&RPPHQFLQJ -XO\ WKH &LW\ ZDV WR SD\ WKH 7UXVWHH WKH IXOO VFKHGXOHG DPRXQW ZKHQ GXH DQG FRPPHQFLQJRQ-DQXDU\WRSD\1DWLRQDORQ-DQXDU\ DQG-XO\RIHDFK\HDUDQDPRXQWHTXDO WRRIDOO09/)WRZKLFKWKH&LW\ZRXOGEHHQWLWOHGXQGHUW KH&DOLIRUQLD5HYHQXHDQG7D[DWLRQ&RGH GXULQJWKHSUHYLRXVVL[PRQWKVPLQXVWKHDPRXQWSDLGWRWKH7UXVWHHIRUWKHVDPHSHULRGSURYLGHGWKDWWKH09/) H[FHHG WKH WRWDO DPRXQWV GXH IRU WKDW SHULRG7KH &LW\¶V REOLJDWLRQ WR SD\DPRXQWVLVQRWGHSHQGHQWRQLWV UHFHLSWRI09/)LQDQ\DPRXQW
7KH09/)FDWFKXSSD\PHQWLVWREHDSSOLHGWRWKHVKRUWIDOOLQG HEWHGQHVVXQWLOSDLGLQIXOO7RWKHH[WHQWWKDW WKHVKRUWIDOOLQGHEWHGQHVVLVQRWSDLGLQIXOOE\WKHODVWVFKH GXOHGSD\PHQWXQGHUWKH/HDVH$JUHHPHQWWKH&LW\ LVWRSD\WKHUHPDLQLQJEDODQFHRIWKHVKRUWIDOOLQGHEWHGQHVVWR1DWLRQDOQRODWHUWKDQ-DQXDU\'XULQJ WKH\HDUHQGHG-XQHWKH&LW\SDLGWRSD\RIIWK HORDQ
%RQG5DWLQJ±2Q-XQH6WDQGDUGDQG3RRU¶VUDLVHGLWVORQJWHUPUDWLQJDQGXQGHUO\LQJUDWLQJ 6385
WR
³$´IURP³%%%´RQ
&2367KHFUHGLWUHSRUWKLJKOLJKWHGWKH&LW\¶VVWURQJILQDQFLDOSRVLWLRQGXULQJWKHSDVWILYH ILVFDO\HDUV
' 8%2&5HLPEXUVHPHQW2EOLJDWLRQV
2Q$XJXVW8QLRQ%DQNDQGWKH&LW\UHDFKHGDUHVWUXFWXU LQJDJUHHPHQWUHJDUGLQJVHULHV DQG&HUWLILFDWHVRI3DUWLFLSDWLRQ
&23V
ZKLFKDPHQG HGDQGUHSODFHGWKH&23VDVIROORZV
7KHUHDUHWZRWUDQFKHV
WKH³$´REOLJDWLRQDQGWKH³%´REOLJDWLRQ7KHVWDUWLQJSULQFLSDOEDODQFHRIWKH³$´REOLJDWLRQ LV
DQGWKH³%´REOLJDWLRQKDVDVWDUWLQJSULQFLSDORI 1RLQWHUHVWDFFUXHGRQHLWKHUWKH³$´
RUWKH³%´REOLJDWLRQIURPWKHHIIHFWLYHGDWHRI1RYHPEHU WKURXJK'HFHPEHUDQGLQWHUHVW FRPPHQFHGDFFUXDORQERWKREOLJDWLRQVRQ-DQXDU\7KH³ $´REOLJDWLRQKDVDIL[HGDQQXDOLQWHUHVWUDWH RIDQGWKH³%´REOLJDWLRQKDVDIL[HGDQQXDOLQWHUHVWUDWH RI,QWHUHVWLVSD\DEOHDQQXDOO\RQWKHILUVW EXVLQHVVGD\RIHDFKFDOHQGDU\HDULQDVLQJOHDQQXDOSD\PHQWLQDGYDQFH,QWHUHVWSD\PHQWVRQWKHREOLJDWLRQV FRPPHQFHLQWKHFDOHQGDU\HDUVDQGIRUREOLJDWLRQV³$ ´DQG³%´UHVSHFWLYHO\DQGFRQWLQXLQJLQHDFK FDVHXQWLOWKHSULQFLSDOEDODQFHRIWKDWREOLJDWLRQKDVEHHQSDLGLQIXOO
3ULQFLSDOLVSD\DEOHDQQXDOO\RQWKHILUVWEXVLQHVVGD\RIHDFK FDOHQGDU\HDULQDVLQJOHDQQXDOSD\PHQW FRPPHQFLQJZLWKWKHFDOHQGDU\HDUIRUWKH³$´REOLJDWLRQD QGIRUWKH³%´REOLJDWLRQ7KHRXWVWDQGLQJ SULQFLSDO EDODQFH DOO DFFUXHG EXW XQSDLG LQWHUHVW DQG DOO RWKH U D P R X Q W V G X H X Q G H U W K H 1 H Z 8 Q L R Q % D Q N 5HLPEXUVHPHQW $JUHHPHQW 3D\PHQW $JUHHPHQW ZLWK UHVSHFW WR WKH ³$´ REOLJDWLRQ LV GXH DQGSD\DEOHRQ -DQXDU\
DQGWKH³%´REOLJDWLRQLVGXHDQGSD\DEOHRQ-DQXDU\
( 5HYHQXH%RQGV
:DWHU 5HYHQXH 5HIXQGLQJ %RQGV±2Q0DUFKWKH&LW\LVVXHGLQ:DWHU5HYH QXH 5HIXQGLQJ%RQGVWRUHIXQGWKHRXWVWDQGLQJDQG:DWHU5 HYHQXH%RQGV7KHUHIXQGLQJUHVXOWHGLQDQ HFRQRPLFJDLQ
GLIIHUHQFHEHWZHHQWKHSUHVHQWYDOXHVRIWKHGHE WVHUYLFHSD\PHQWVRQWKHROGDQGQHZGHEW RI
7KH6HULHV$ %%RQGVDQGWKHLQWHUHVWWKHUHRQDUHSD\DEO HVROHO\IURPDILUVWOLHQRQDQGSOHGJHRIWKH 1HW5HYHQXHV
WKHDPRXQWRIWKHJURVVUHYHQXHVOHVVRSHUDWLQJH[SHQVHV GHULYHGE\WKH&LW\IURPWKHRSHUDWLRQRI
WKH&LW\¶VZDWHUV\VWHP,QWHUHVWLVSD\DEOHRQ0D\DQG1RYHPEHU$QQXDOSULQFLSDOSD\PHQWVDUHGXHRQ0D\ 7KHGHEWLVVHFXUHGDQGVHUYLFHGE\ZDWHUV\VWHPRSHUDWLRQV7KH6HULHV$ %%RQGVZHUHJLYHQDQ$$UDWLQJ E\6WDQGDUG 3RRU¶V
:DWHU5HYHQXH%RQGV6HULHV$±2Q)HEUXDU\WKH&LW\LVVXHGLQ:DWHU5HYHQXH%RQGV WRSURYLGHIXQGVWRILQDQFHFDSLWDOIDFLOLWLHVQHHGHGWRRSHUDWHDQGLPSURYHWKH&LW\¶VZDWHUV\VWHP7KH6HULHV$ %RQGVDUHVHFXUHGE\DSOHGJHRI1HW5HYHQXHVRQDSDULW\ZLWKWKH6HULHV$%RQGVWKH6HULHV%%RQGV DQGWKH6':65)/RDQ7KH6HULHV$%RQGVZLOOQRWEHVHFXUHGE\DPRXQWVRQGHSRVLWLQWKH3DULW\5HVHUYH )XQGHVWDEOLVKHGXQGHUWKH,QGHQWXUHRUE\DQ\RWKHUUHVHUYHIXQGDQGDPRXQWVRQGHSRVLWLQWKH3DULW\5HVHUYH 83 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
)XQGDUHQRWSOHGJHGWRWKHSD\PHQWRIWKH6HULHV$%RQGV,QWHUHVWLVSD\DEOHRQ0D\DQG1RYHPEHURIHDFK \HDU$QQXDOSULQFLSDOSD\PHQWVDUHGXHRQ0D\7KHGHEWLVVHFXUHGDQGVHUYLFHGE\ZDWHUV\VWHPRSHUDWLRQV7KH 6HULHV$%RQGVZHUHJLYHQDQ$UDWLQJE\6WDQGDUG 3RRU¶V
7KHSOHGJHRIIXWXUHQHWUHYHQXHVHQGVXSRQUHSD\PHQWRIWKH LQUHPDLQLQJGHEWVHUYLFHRQWKHERQGV
DQGORDQVZKLFKLVVFKHGXOHGWRRFFXULQ8QGHUWKHWHUPVRIWKHLQGHQWXUHQHWUHYHQXHVDUHUHTXLUHGWRSURYLGH DGHEWVHUYLFHFRYHUDJHUDWLR
)RU ILVFDO \HDU RSHUDWLQJ UHYHQXHV LQYHVWPHQW LQFRPH DQG FDSLWDO JUDQWV DQG FRQWULEXWLRQV DPRXQW WR DQGRSHUDWLQJ FRVWV LQFOXGLQJ RSHUDWLQJ H[SHQVHV EXW QRW LQWHUHVW DPRXQWHG WR 1HW5HYHQXHVDYDLODEOHIRUGHEWVHUYLFHDPRXQWVWR ZKLFKUHSUHVHQWVFRYHUDJHRIRYHUWKH LQFRPELQHGGHEWVHUYLFHIRUWKH6HULHV$ %:DWHU5HYHQXH5HIXQGLQJ%RQGV6HULHV$:DWHU 5HYHQXH%RQGVDQG6WDWH6DIH'ULQNLQJ:DWHUORDQVGHEWVHUYLFH
5HYHQXH %RQGV ±WKH9):'DQGWKH:DWHU5HXVH)LQDQFH$XWKRULW\LVVXHG5HYHQXH%RQGVLQ WKH SULQFLSDODPRXQWRIDWDSUHPLXPRI
LQDFXU UHQWUHIXQGLQJ
WRSUHSD\WKH RXWVWDQGLQJ
SULQFLSDORI&HUWLILFDWHVRI3DUWLFLSDWLRQ
WRIXQGDUHVHUYHIXQGIRUWKHERQGVDQG
WRSD\FHUWDLQFRVWVRI
LVVXLQJWKHERQGV7KHERQGVDUHIXOO\UHJLVWHUHGZLWKSULQFLSD OGXHDQQXDOO\RQ0D\ DQG LQWHUHVW SD\DEOH VHPLDQQXDOO\RQ0D\DQG1RYHP EHU7KHERQGVPDWXULQJRQRU DIWHU0D\ DUHVXEMHFWWRRSWLRQDO UHGHPSWLRQRQDQ\GDWHRQRUDIWHU0D\WRJHWKHUZLWKD FFUXHGLQWHUHVW WRWKHUHGHPSWLRQGDWHZLWKRXWD SUHPLXP
7KHWUDQVDFWLRQSDLGVFKHGXOHGSULQFLSDOGXHRQWKH&HUWLI LFDWHVRI3DUWLFLSDWLRQLQWKHDPRXQWRI DQG UHGHHPHG WKH UHPDLQLQJ SULQFLSDO DPRXQWLQJ WR SXUVXDQW WR QRWLFH DQG H[HUFLVH RI RSWLRQDO SUHSD\PHQWRIWKH&HUWLILFDWHVIRUDWRWDORI7KHWUDQVDFWLRQUHVXOWHGLQDGHIHUUHGDPRXQWRQUHIXQGLQJ RIDQGDGHFUHDVHLQWRWDOFDVKIORZVRI
7KH GHIHUUHGDPRXQWRQ UHIXQGLQJLVFDUULHGDVD GHIHUUHGRXWIORZRIUHVRXUFHVDQGWKHSUHPLXPLVFDUULHGDVD QHWUHGXFWLRQRIWKH 5HYHQXH%RQGV7KH GHIHUUHGDPRXQWRQUHIXQGLQJDQGWKHSUHPLXPDUHDPRUWL]HGRQDVWUDLJKWOLQH EDVLVRYHUWKHOLIHRIWKHERQGVDV FRPSRQHQWVRILQWHUHVWH[SHQVH
5HYHQXH%RQGV±WKH9):'DQGWKH:DWHU5HXVH)LQDQFH$XWKRULW\LVVXHG5HYH QXH%RQGVLQWKH SULQFLSDODPRXQWRI
DWSUHPLXPRI
LQDQDGYDQFHUHIXQGLQJ
WRSUHSD\WKHRXWVWDQGLQJ
SULQFLSDORI&HUWLILFDWHVRI3DUWLFLSDWLRQ
WRIXQGDUHVHUYHIXQGIRUWKH%RQGVDQG
WRSD\FHUWDLQFRVWV
RILVVXLQJWKH%RQGV7KH%RQGVDUHIXOO\UHJLVWHUHGZLWKSULQF LSDOGXHDQQXDOO\RQ0D\DQGLQWHUHVWSD\DEOH VHPLDQQXDOO\RQ0D\DQG1RYHPEHU7KH%RQGVPDWXULQJRQRUDIWHU0D\DUHVXEMHFWWRRSWLRQDO UHGHPSWLRQRQDQ\GDWHRQRUDIWHU0D\WRJHWKHUZLWKD FFUXHGLQWHUHVWWRWKHUHGHPSWLRQGDWHZLWKRXW DSUHPLXP
7KHWUDQVDFWLRQUHVXOWHG LQDGHIHUUHGDPRXQWRQ UHIXQGLQJRI D GHFUHDVHLQWRWDOFDVK IORZVRI DQGDQHFRQRPLFJDLQRI7KHGHIHUUHGDPRXQWRQUHIXQGLQJLVFDUULHGDVDGHIHUUHG RXWIORZ RIUHVRXUFHVDQGWKHSUHPLXPLVFDUULHGDVDQHWUHGXFWLRQWR WKH5HYHQXH%RQGV7KHGHIHUUHGDPRXQW RQUHIXQGLQJDQGWKHSUHPLXPDUHDPRUWL]HGRQDVWUDLJKWOLQHE DVLVRYHUWKHOLIHRIWKH %RQGVDVFRPSRQHQWVRI LQWHUHVWH[SHQVH
) 2WKHU1RWHVDQG/RDQV3D\DEOH
6WDWH6DIH'ULQNLQJ:DWHU:DWHU)XQG ±7KHORDQZLWKRULJLQDODPRXQWRIIURPWKH6WDWHRI &DOLIRUQLD 'HSDUWPHQWRI:DWHU5HVRXUFHVZDVXVHGWRILQDQFHFRQVWUXFWLRQRIDSURMHFWZKLFKHQDEOHVWKH &LW\WRPHHWVDIH GULQNLQJZDWHUVWDQGDUGV7KHLQWHUHVWUDWHLV6HPLDQQXDOSULQFLSDOSD\PHQWVDUHGXHRQ-XO\DQG-DQXDU\ WKURXJK
84 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
/21*7(50'(%7
&217,18('
+8'6HFWLRQ/RDQ– 2Q$SULO
WKH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK WKH86'HSDUWPHQWRI +RXVLQJDQG8UEDQ'HYHORSPHQW
+8'
IRUWKHGHPROLWLRQRIYDFDQWEXLOGLQJVRQ1RUWK0DUH,VODQG7KHSODQQHG VRXUFHRIUHSD\PHQWLVWKH*HQHUDO)XQGDQGSURFHHGVIURPWKHVDOHRIWKH1RUWK0DUH,VODQGSURSHUW\7KHORDQ ZDVLVVXHGDVDYDULDEOHUDWHORDQZLWKLQWHUHVWFDOFXODWHGGDLO\$QQXDOSULQFLSDOSD\PHQWVDUHGXHRQ$XJXVW FRPPHQFLQJ
WKURXJK,QWHUHVWLVSD\DEOHTXDUWHUO\RQ$XJXVW1RYHPEHU)HEUXDU\DQG0D\,I WKH&LW\IDLOVWRPDNHDQ\VFKHGXOHGSD\PHQWV+8'ZLOOXVH&'%* &RPPXQLW\'HYHORSPHQW%ORFN*UDQW
IXQGV
ZKLFKDUHWKHSULPDU\VHFXULW\RIWKLVORDQWRFRYHUWKHSD\PHQW$VRI-XQHWKHORDQZDVIXOO\SDLG
%DQN RI $PHULFD /RDQ IRU )OHHW 3XUFKDVHV±2Q-XQH&LW\HQWHUHGLQWRDORDQDJUHHPHQWZLWK %DQNRI$PHULFD3XEOLF&DSLWDO&RUSIRUWKHDPRXQWRIWRILQDQFHWKHSXUFKDVHRIQHZILUHSROLFHDQG SXEOLFZRUNVIOHHWYHKLFOHV7KHUDWHLV
DQGVHPLDQQXDOS ULQFLSDOSD\PHQWVDUHGXHRQ-XQHDQG 'HFHPEHUWKURXJK
9DOOHMR )ORRG DQG :DVWHZDWHU 6WDWH &OHDQ :DWHU
±,Q$XJXVWWKH9):'HQWHUHGLQWRD ORDQ
DJUHHPHQWZLWKWKH'LYLVLRQRI )LQDQFLDO $VVLVWDQFHRIWKH6WDW H:DWHU5HVRXUFHV&RQWURO%RDUGXQGHU WKH &OHDQ :DWHU 6WDWH 5HYROYLQJ )XQG ORDQ SURJUDP LQ WKH DPRXQW RI 3D\PHQWV LQ WKH DPRXQWRI
ZLWKLQWHUHVWDWFRPPHQFLQJ0D\DQGDUHGXHDQQXDOO\WKHUHDIWHUXQWLO PDWXULW\LQ
9DOOHMR)ORRGDQG:DVWHZDWHU6WDWH&OHDQ:DWHU
±'XULQJWKHILVFDO\HDUHQGHG-XQH WKH'LVWULFW FRPSOHWHGDVHFRQGORDQDJUHHPHQWZLWKWKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG¶V'LYLVLRQRI)LQDQFLDO$VVLVWDQFH 7KHORDQLVGDWHG-DQXDU\DQGLVLQWKHSULQFLSDODPRX QWRI 3D\PHQWV LQ WKH DPRXQW RI ZLWK LQWHUHVW DW FRPPHQFH -DQXDU\ DQG DUH GXH DQQXDOO\WKHUHDIWHUXQWLOPDWXULW\LQ
9DOOHMR)ORRGDQG:DVWHZDWHU6WDWH&OHDQ:DWHU
±'XULQJWKHILVFDO\HDUHQGHG-XQHWKH'LVWULFW HQWHUHGLQWRORDQDJUHHPHQWZLWKWKH6WDWH:DWHU5HVRXUFHV&RQWURO%RDUG¶V'LYLVLRQRI)LQDQFLDO$VVLVWDQFH7KHORDQ LVGDWHG$SULODQGLVLQWKHSULQFLSDODPRXQWRIXSWR7KH'LVWULFWLVGUDZLQJGRZQRQWKHORDQDV WKHSURMHFWSURJUHVVHV7KHUHKDVEHHQQRUHSD\PHQWVFKHGXOHVHWDVRI-XQH,QWHUHVWLVWRDFFUXHDWDUDWH RISHUDQXPDQGZLOOEHJLQZLWKHDFKGLVEXUVHPHQW)LQDOSD\PHQWGDWHLVVHWDW'HFHPEHU
* )LQDQFH3XUFKDVH$JUHHPHQW
5DGLR(TXLSPHQW)LQDQFH3XUFKDVH$JUHHPHQW
2Q0D\&LW\HQWHUHGLQWRDILQDQFHSXUFKDVHDJUHHPHQWLQWKHDPRXQWRI
ZLWK0RWRUROD6ROXWLRQV
,QFIRUWKHSXUFKDVHRIUDGLRHTXLSPHQW7KH&LW\DJUHHGWRPDNHDPLOOLRQGRZQSD\PHQWDQGDQQXDOSD\PHQWV RIFRPPHQFLQJ-XQHXQWLOPDWXULW\LQ
127(
'(%7:,7+287&,7<&200,70(17
Assessment and Improvement Districts
6SHFLDO $VVHVVPHQW DQG ,PSURYHPHQW 'LVWULFWV LQ YDULRXV SDUWV RI WKH &LW\ KDYH LVVXHG GHEW WR ILQDQFH LQIUDVWUXFWXUHLPSURYHPHQWVDQGIDFLOLWLHVZLWKLQWKHLUERXQGDULHV7KH&LW\LVWKHFROOHFWLQJDQGSD\LQJDJHQWIRU WKHGHEWLVVXHGE\WKHVH'LVWULFWVEXWKDVQRGLUHFWRUFRQWLQJHQWOLDELOLW\IRUWKHSD\PHQWRIWKLV GHEW7KHUHIRUHWKLV GHEW LV QRW UHSRUWHG DV ORQJWHUP GHEW RI WKH &LW\ 7KH RXWVWDQGLQJ EDODQFH RI HDFK RI WKHVHLVVXHVDVRI -XQHLVDVIROORZV
,PSURYHPHQW%RQGV
+LGGHQEURRNH,PSURYHPHQW'LVWULFW6HULHV$
1RUWKHDVW,PSURYHPHQW'LVWULFW
7RWDO
85 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
&21'8,7'(%7
7KHIROORZLQJERQGVGRQRWFRQVWLWXWHRUFUHDWHDGHEWRUSOHGJHRIWKHJHQHUDOFUHGLWRUWD[LQJSRZHURIWKH &LW\DQG DFFRUGLQJO\DUHQRWUHSRUWHGDVORQJWHUPGHEWRIWKH&LW\
Mortgage Revenue Bonds
6RODQR 9LVWD ,,±0XOWLIDPLO\+RXVLQJ5HYHQXH%RQGV6HULHV$ 6RODQR9LVWD,,6HQLRU$SDUWPHQWV
LQ WKH
DPRXQWRI7KHERQGVEHDULQWHUHVWDWWKHUDWHRI ,QWHUHVWSD\PHQWVDUHGXH VHPLDQQXDOO\ WKURXJK1RYHPEHU7KHERQGVDUHGDWHG$XJXVWDQGZHUHLVVXHGWRSURYLGH IXQGLQJIRUDPRUWJDJH ORDQIRUWKHDFTXLVLWLRQDQGFRQVWUXFWLRQRIDPXOWLIDPLO\KRXVLQJSURMHFW2Q-XQHWKLVERQGZDVIXOO\SDLG
127(
(03/2<((%(1(),763$<$%/(
(PSOR\HH %HQHILWV 3D\DEOH UHSRUWHG LQ WKH 6WDWHPHQW RI 1HW 3RVLWLRQ LQFOXGHV FRPSHQVDWHG DEVHQFHV DV GLVFXVVHGEHORZ
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
&RPSHQVDWHGDEVHQFHVKDYHEHHQUHFRUGHGDWWKHFRQWUDFWXDOVDODU\UDWHVGXHWRHPSOR\HHVDW-XQH &RPSHQVDWHGDEVHQFHVDFWLYLW\IRUWKH&LW\DQG9):'IRUWKH\HDUHQGHG-XQHLVDVIROORZV
*RYHUQPHQWDO
$FWLYLWLHV
%XVLQHVV7\SH
$FWLYLWLHV 7RWDO 9):'
7RWDO
&XUUHQW3RUWLRQ
,QWHUQDO6HUYLFH)XQGV&LW\
(QWLW\:LGH
9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW
1RQFXUUHQW3RUWLRQ
(QWLW\:LGH
9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW
&RPSHQVDWHG$EVHQFHV$FWLYLW\
%HJLQQLQJ%DODQFH
$GGLWLRQV
'HOHWLRQV
(QGLQJ%DODQFH
&RPSHQVDWHG$EVHQFHV
&ODVVLILFDWLRQ3UHVHQWDWLRQ
&XUUHQW3RUWLRQ
1RQFXUUHQW3RUWLRQ
1RQFXUUHQW(PSOR\HH%HQHILWV3D\DEOH
&RPSHQVDWHG$EVHQFHV
2WKHU(PSOR\HH%HQHILWV
5+6$&RQWULEXWLRQVHWDVLGHE\&LW\
1RQFXUUHQW3RWLRQ
86 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
$ *HQHUDO,QIRUPDWLRQDERXWWKH&LW\¶V3HQVLRQ3ODQV Plan Descriptions ±$OOTXDOLILHGSHUPDQHQWDQGSUREDWLRQDU\HPSOR\HHVDUHHOLJLE OHWRSDUWLFLSDWHLQWKH&LW\¶V VHSDUDWH6DIHW\
SROLFHDQGILUH
DQG0LVFHOODQHRXV
DOORWKHU
3ODQVDJHQWPXOWLSOHHPSOR\HUGHILQHGEHQHILW
SHQVLRQ SODQV DGPLQLVWHUHG E\ WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶5HWLUHPHQW 6\VWHP &DO3(56
ZKLFKDFWV
DVDFRPPRQLQYHVWPHQWDQGDGPLQLVWUDWLYHDJHQWIRULWVSDUWLFL SDWLQJPHPEHUHPSOR\HUV %HQHILW SURYLVLRQV XQGHUWKH3ODQVDUHHVWDEOLVKHGE\6WDWHVWDWXWHDQG&LW\UHVRO XWLRQ&DO3(56LVVXHVSXEOLFO\DYDLODEOHUHSRUWV WKDWLQFOXGHDIXOOGHVFULSWLRQRIWKHSHQVLRQSODQVUHJDUGLQJ EHQHILWSURYLVLRQVDVVXPSWLRQVDQGPHPEHUVKLS LQIRUPDWLRQWKDWFDQEHIRXQGRQWKH&DO3(56ZHEVLWH
Benefits Provided ± &DO3(56 SURYLGHV VHUYLFH UHWLUHPHQW DQG GLVDELOLW\ EHQHILWVDQQXDO FRVW RI OLYLQJ DGMXVWPHQWVDQGGHDWKEHQHILWVWRSODQPHPEHUVZKRPXVWEHSXE OLFHPSOR\HHVDQGEHQHILFLDULHV%HQHILWV DUHEDVHGRQ\HDUVRIFUHGLWHGVHUYLFHHTXDOWRRQH\HDURIIXOOWLPHHPSOR\PHQW0HPEHUVZLWKILYH\HDUVRIWRWDO VHUYLFHDUHHOLJLEOHWRUHWLUHDWDJHZLWKVWDWXWRULO\UHGXF HGEHQHILWV $OOPHPEHUV DUHHOLJLEOHIRUQRQGXW\ GLVDELOLW\EHQHILWVDIWHU\HDUVRIVHUYLFH7KHGHDWKEHQHIL WLVRQHRIWKHIROORZLQJ WKH%DVLF'HDWK%HQHILW
WKH
6XUYLYRU%HQHILWRUWKH2SWLRQDO6HWWOHPHQW:'HDWK %HQHILW7KHFRVWRIOLYLQJDGMXVWPHQWVIRUHDFK SODQDUHDSSOLHGDVVSHFLILHGE\WKH3XEOLF(PSOR\HHV¶5HWLUHPHQW/DZ7KH3HQVLRQ5HIRUP$FWRI 3(35$
$VVHPEO\%LOOLVDSSOLFDEOHWRHPSOR\HHVQHZWR&DO3(56DQGKLUHGDIWHU'HFHPEHU
7KH3ODQV¶SURYLVLRQVDQGEHQHILWVLQHIIHFWDVRIWKHPHDVXUHPHQWGDWHDUHVXPPDUL]HGDVIROORZV
87 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
&ODVVLF7LHU, &ODVVLF7LHU,, 3(35$
+LUH'DWH
3ULRUWR
'HFHPEHU
2QRU$IWHU
'HFHPEHU
2QRU$IWHU
-DQXDU\
%HQHILW)RUPXOD # # #
%HQHILW9HVWLQJ6FKHGXOH \HDUVRIVHUYLFH \HDUVRIVHUYLFH \ HDUVRIVHUYLFH %HQHILW3D\PHQWV PRQWKO\IRUOLIH PRQWKO\IRUOLIH PRQWKO\IRUOLI H 5HWLUHPHQW$JH
0RQWKO\%HQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ 5HTXLUHG(PSOR\HH&RQWULEXWLRQ5DWHV
6DIHW
\)LUH
5HTXLUHG8QIXQGHG$FFUXHG/LDELOLW\&RQWULEXWLRQ
0RQWKO\%DVLV
5HTXLUHG(PSOR\HU&RQWULEXWLRQ5DWHV
1RUPDO
&RVW
&ODVVLF7LHU, 3(35$
+LUH'DWH
3ULRUWR
-DQXDU\
2QRU$IWHU
-DQXDU\
%HQHILW)RUPXOD # #
%HQHILW9HVWLQJ6FKHGXOH \HDUVRIVHUYLFH \HDUVRIVHUYLFH %HQHILW3D\PHQWV PRQWKO\IRUOLIH PRQWKO\IRUOLIH
5HWLUHPHQW$JH
0RQWKO\%HQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ 5HTXLUHG(PSOR\HH&RQWULEXWLRQ5DWHV
6DIHW
\3ROLFH
5HTXLUHG(PSOR\HU&RQWULEXWLRQ5DWHV
1RUPDO
&RVW
5HTXLUHG8QIXQGHG$FFUXHG/LDELOLW\&RQWULEXWLRQ
0RQWKO\%DVLV
,QFOXGHGLQ)LUHWDEOHDERYH
88 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
Employees Covered ±$WWKH-XQHDFWXDULDOYDOXDWLRQGDWHWKHIROORZLQJ HPSOR\HHVZHUHFRYHUHG E\WKHEHQHILWWHUPVIRUHDFK3ODQ
Contributions±6HFWLRQ
F
RIWKH&DOLIRUQLD3XEOLF(PSOR\HHV¶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
%HJLQQLQJLQILVFDO\HDU&DO3(56FROOHFWVHPSOR\HUFRQWULEXWLRQVIRUHDFK3ODQDVDSHUFHQWDJHRISD\UROOIRU WKHQRUPDOFRVWSRUWLRQDQGDVDGROODUDPRXQWIRUFRQWULEXWLRQ VWRZDUGWKHXQIXQGHGOLDELOLW\ 8$/
7KHGROODU
DPRXQWVDUHHLWKHUELOOHGRQDPRQWKO\EDVLVRUPD\EHSDLGLQDOXPSVXPDWGLVFRXQW'XULQJWKHPHDVXUHPHQW SHULRGWKH&LW\¶VUHTXLUHG8$/FRQWULEXWLRQVZHUHPDGHXQGHUWKHOXPSVXPRSWLRQ
% 1HW3HQVLRQ/LDELOLW\
)RUSXUSRVHVRIPHDVXULQJWKHQHWSHQVLRQOLDELOLW\DQGGHIHUUHGRXWIORZVLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQV DQGSHQVLRQH[SHQVHLQIRUPDWLRQDERXWWKHILGXFLDU\QHWSRVLWL RQRIWKH3ODQVDQGDGGLWLRQVWRGHGXFWLRQVIURP WKH3ODQV¶ILGXFLDU\QHWSRVLWLRQKDYHEHHQGHWHUPLQHGRQWKHV DPHEDVLVDVWKH\DUHUHSRUWHGE\WKH&DO3(56 )LQDQFLDO2IILFH)RUWKLVSXUSRVHEHQHILWSD\PHQWV
LQFOXGLQJ UHIXQGVRIHPSOR\HHFRQWULEXWLRQV
DUHUHFRJQL]HG
ZKHQFXUUHQWO\GXHDQGSD\DEOHLQDFFRUGDQFHZLWKWKHEHQHILWW HUPV ,QYHVWPHQWV DUH UHSRUWHG DW IDLU YDOXH 7KHQHWSHQVLRQOLDELOLW\DQGUHODWHGGHIHUUHGRXWIORZVLQIORZV RIUHVRXUFHVDUHOLTXLGDWHGE\WKHIXQGWKDWKDV UHFRUGHGWKHOLDELOLW\7KHORQJWHUPSRUWLRQRIJRYHUQPHQWDOD FWLYLWLHVQHWSHQVLRQOLDELOLW\LVOLTXLGDWHGSULPDULO\E\ WKH*HQHUDO)XQG
7KH&LW\¶VQHWSHQVLRQOLDELOLW\IRUHDFK3ODQLVPHDVXUHGDVW KHWRWDOSHQVLRQOLDELOLW\OHVVWKHSHQVLRQSODQ¶V ILGXFLDU\QHWSRVLWLRQ7KHQHWSHQVLRQOLDELOLW\RIHDFKRIWK H3ODQVLVPHDVXUHGDVRI-XQHXVLQJDQ DQQXDO DFWXDULDO YDOXDWLRQ DV RI -XQH UROOHG IRUZDUG WR -XQH XVLQJ VWDQGDUGXSGDWH SURFHGXUHV$VXPPDU\RISULQFLSDODVVXPSWLRQVDQGPHWKRGVXVHGWRGHWHUPLQHWKHQHWSHQVLRQOLDELOLW\LVVKRZQ EHORZ
&ODVVLF7LHU, &ODVVLF7LHU,, 3(35$3ODQ
7RWDO
&ODVVLF7LHU, &ODVVLF7LHU,, 3(35$3ODQ
7RWDO
,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJ ,QDFWLYHHPSOR\HHVHOLJLEOHWREXWQRW\HWUHFHLYLQJEHQHILWV ,QDFWLYHHPSOR\HHVLQHOLJLEOHWREXWQRW\HWUHFHLYLQJEHQHILWV $FWLYHHPSOR\HHV
0LVFHOODQHRXV
,QDFWLYHHPSOR\HHVRUEHQHILFLDULHVFXUUHQWO\UHFHLYLQJ ,QDFWLYHHPSOR\HHVHOLJLEOHWREXWQRW\HWUHFHLYLQJEHQHILWV ,QDFWLYHHPSOR\HHVLQHOLJLEOHWREXWQRW\HWUHFHLYLQJEHQHILWV $FWLYHHPSOR\HHV
6DIHW
\
89 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
Actuarial Assumptions ±)RUWKHPHDVXUHPHQWSHULRGHQGHG-XQHWKHWRWDOSHQ VLRQOLDELOLWLHVZHUH GHWHUPLQHGE\UROOLQJIRUZDUGWKH-XQHWRWDOSHQVLRQO LDELOLW\7KH-XQHWRWDOSHQVLRQOLDELOLWLHV ZHUHEDVHGRQWKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV
$OO RWKHU DFWXDULDO DVVXPSWLRQV XVHG LQ WKH -XQH YDOXDWLRQ ZHUH EDVHG RQ WKH UHVXOWV RI D 'HFHPEHU DFWXDULDO H[SHULHQFH VWXG\ IRU WKH SHULRG LQFOXGLQJ XSGDWHV WR VDODU\LQFUHDVH
PRUWDOLW\DQGUHWLUHPHQWUDWHV)XUWKHUGHWDLOVRIWKH([SHULHQ FH6WXG\FDQEHIRXQGRQWKH&DO3(56ZHEVLWH XQGHU)RUPVDQG3XEOLFDWLRQV
Change of Assumptions ±'XULQJPHDVXUHPHQWSHULRGWKHGLVFRXQWUDWHZDVUHGXFHGIURPWR
LQIODWLRQZDVUHGXFHGIURPWRDQGGHPRJUDSKLFDVVXPSWLRQVZHUHFKDQJHGLQDFFRUGDQFHZLWKWKH &$/3(56([SHULHQFHVWXG\
Discount Rate ±7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ZDV 7KHSURMHFWLRQRIFDVK
IORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWFRQWULEXWLRQVIURPSODQPHPEHUVZLOOEHPDGHDWWKHFXUUHQW PHPEHUFRQWULEXWLRQUDWHVDQGWKDWFRQWULEXWLRQVIURPHPSOR\HUVZLOOEHPDGHDWVWDWXWRULO\UHTXLUHGUDWHVDFWXDULDOO\ GHWHUPLQHG%DVHGRQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QHWSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNHDOO SURMHFWHGIXWXUHEHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV
7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILW SD\PHQWVWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\
7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFNPHWKRG LQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ
H[SHFWHGUHWXUQVQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ
DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV
0LVFHOODQHRXV 6DIHW\
9DOXDWLRQ'DWH -XQH -XQH
0HDVXUHPHQW'DWH -XQH -XQH
$FWXDULDO&RVW0HWKRG (QWU\$JH1RUPDO&RVW0HWKRG (QWU\$JH1RUP DO&RVW0HWKRG $FWXDULDO$VVXPSWLRQV
'LVFRXQW5DWH
,QIODWLRQ
3D\UROO*URZWK 9DULHVE\HQWU\DJHDQGVHUYLFH 9DULHVE\HQWU\DJ HDQGVHUYLFH 3URMHFWHG6DODU\,QFUHDVH 9DULHVE\HQWU\DJHDQGVHUYLFH 9DULHV E\HQWU\DJHDQGVHUYLFH ,QYHVWPHQW5DWHRI5HWXUQ
0RUWDOLW\
3RVW5HWLUHPHQW%HQHILW,QFUHDVH
'HULYHGXVLQJ&DO3(560HPEHUVKLS'DWDIRUDOO)XQG
7KHOHVVHURIFRQWUDFW&2/$RUXQWLO3XUFKDVLQJ3RZHU 3URWHFWLRQ$OORZDQFHIORRURQSXUFKDVLQJSRZHUDSSOLHVWKHUHDIWHU $FWXDULDODVVXPSWLRQVDUHWKHVDPHIRUDOOEHQHILWWLHUV &ODVVLF7LHU,&ODVVLF7LHU,,DQG3(35$
1HWRISHQVLRQSODQLQYHVWPHQWDQGDGPLQLVWUDWLRQH[SHQVHVLQFOXGLQJLQIODWLRQ 7KH PRUWDOLW\ WDEOH XVHG ZDV GHYHORSHG EDVHG RQ &DO3(56VSHFLILF GDWD 7KH SUREDELOLWLHV RI PRUWDOLW\ DUH EDVHG RQ WKH &DO3(56 ([SHULHQFH 6WXG\ IRU WKH SHULRG IURP 3 UHUHWLUHPHQW DQG
3RVWUHWLUHPHQW PRUWDOLW\ UDWHV LQFOXGH JHQHUDWLRQDO PRUWDOLW\ LPSURYHPHQW XVLQJ RI 6FDOH 03 SXEOLVKHGE\WKH6RFLHW\RI$FWXDULHV
90 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ&DO3(56W RRNLQWRDFFRXQWERWKVKRUWWHUPDQGORQJWHUP PDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWHGSHQVLRQIXQG FDVKIORZV8VLQJKLVWRULFDOUHWXUQVRIDOORIWKH IXQGV¶DVVHWFODVVHVH[SHFWHGFRPSRXQG
JHRPHWULF
UHWXUQVZHUHFDOFXODWHGRYHUWKHVKRUWWHUP
ILUVW\HDUV
DQGWKHORQJWHUP
\HDUV
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
$VVXPHG
$VVHW
$OORFDWLRQ 5HDO5HWXUQ
7RWDO
)LJXUHVDUHEDVHGRQWKH$VVHW/LDELOLW\0DQDJHPHQW6WXG\ *OREDO(TXLW\1RQ&DSZHLJKWHG
,QYHVWPHQW*UDGH&RUSRUDWHV
3ULYDWH(TXLW\
7UHDVXU\
0RUWDJHEDFNHGVHFXULWLHV
$QH[SHFWHGLQIODWLRQRIXVHGIRUWKLVSHULRG $VVHW&ODVV
*OREDO(TXLW\&DSZHLJKWHG
5HDO$VVHWV
/HYHUDJH
+LJK<LHOG
(PHUJLQJ0DUNHW'HEW
3ULYDWH'HEW
91 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
& &KDQJHVLQWKH1HW3HQVLRQ/LDELOLW\
7KHFKDQJHVLQWKH1HW3HQVLRQ/LDELOLW\IRUHDFK3ODQIROORZ
0LVFHOODQHRXV 3ODQ
6DIHW\3ODQ
7RWDO3HQVLRQ 3ODQ)LGXFLDU\ 1HW3HQVLRQ
/LDELOLW\ 1HW3RVLWLRQ /LDELOLW\
$VVHW
D
E
F
D
E
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
&KDQJHVUHFRJQL]HGIRUWKH
PHDVXUHPHQWSHULRG
6HUYLFHFRVW
,QWHUHVWRQWRWDOSHQVLRQOLDELOLW\
&KDQJHVRIDVVXPSWLRQV
'LIIHUHQFHVEHWZHHQH[SHFWHGDQG
DFWXDOH[SHULHQFH
&RQWULEXWLRQVHPSOR\HU
1HWLQYHVWPHQWLQFRPH
%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRI
HPSOR\HHFRQWULEXWLRQV
$GPLQLVWUDWLYHH[SHQVH
1HWFKDQJHVGXULQJ
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
7RWDO3HQVLRQ 3ODQ)LGXFLDU\ 1HW3HQVLRQ
/LDELOLW\ 1HW3RVLWLRQ /LDELOLW\
$VVHW
D
E
F
D
E
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
&KDQJHVUHFRJQL]HGIRUWKH
PHDVXUHPHQWSHULRG
6HUYLFHFRVW
,QWHUHVWRQWRWDOSHQVLRQOLDELOLW\ &KDQJHVRIDVVXPSWLRQV 'LIIHUHQFHVEHWZHHQH[SHFWHGDQG
DFWXDOH[SHULHQFH
&RQWULEXWLRQVHPSOR\HU
&RQWULEXWLRQVHPSOR\HH
1HWLQYHVWPHQWLQFRPH
%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRI
HPSOR\HHFRQWULEXWLRQV
$GPLQLVWUDWLYHH[SHQVH
1HWFKDQJHVGXULQJ
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
92 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
Sensitivity of the Net Pension Liability to Changes in the Discount Rate ±7KHIROORZLQJSUHVHQWVWKHQHW SHQVLRQOLDELOLW\RIWKH&LW\IRUHDFK3ODQFDOFXODWHGXVLQJW KHGLVFRXQWUDWHIRUHDFK3ODQDVZHOODVZKDW WKH &LW\¶V QHW SHQVLRQ OLDELOLW\ ZRXOG EH LI LW ZHUH FDOFXODWHG XVLQJ D GLVFRXQW UDWH WKDW LV SHUFHQWDJHSRLQW ORZHURUSHUFHQWDJHSRLQWKLJKHUWKDQWKHFXUUHQWUDWH
Pension Plan Fiduciary Net Position ±'HWDLOHGLQIRUPDWLRQDERXWHDFKSHQVLRQSODQ¶VILGXFLDU\QHW SRVLWLRQ LVDYDLODEOHLQWKHVHSDUDWHO\LVVXHG&DO3(56ILQDQFLDOUHSRUWV
' 3HQVLRQ([SHQVHVDQG'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV 5HODWHGWR3HQVLRQV
)RUWKH\HDUHQGHG-XQHWKH&LW\UHFRJQL]HGSHQVLRQH [SHQVHRI IRUWKH
0LVFHOODQHRXVDQG6DIHW\3ODQVUHVSHFWLYHO\IRUWRWDOSHQVLRQ H[SHQVHRI
$W-XQHWKH
&LW\UHSRUWHGGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHGLQIOR ZVRIUHVRXUFHVUHODWHGWR SHQVLRQVIURPWKH IROORZLQJVRXUFHV
0LVFHOODQHRXV 6DIHW\ 7RWDO
'HFUHDVH
,QFUHDVH
1HW3HQVLRQ/LDELOLW\
&XUUHQW'LVFRXQW5DWH
1HW3HQVLRQ/LDELOLW\
1HW3HQVLRQ/LDELOLW\
0LVFHOODQHRXV3ODQ
'HIHUUHG2XWIORZV 'HIHUUHG,QIORZV
RI5HVRXUFHV RI5HVRXUFHV
&RQWULEXWLRQVVXEVHTXHQWWRWKH
PHDVXUHPHQWGDWH
&KDQJHVRIDVVXPSWLRQV
'LIIHUHQFHVEHWZHHQH[SHFWHGDQG
DFWXDOH[SHULHQFH
1HWGLIIHUHQFHEHWZHHQSURMHFWHG
DQGDFWXDOHDUQLQJVRQSHQVLRQ
SODQLQYHVWPHQWV
7RWDO
6DIHW\3ODQ
'HIHUUHG2XWIORZV 'HIHUUHG,QIORZV
RI5HVRXUFHV RI5HVRXUFHV
&RQWULEXWLRQVVXEVHTXHQWWRWKH
PHDVXUHPHQWGDWH &KDQJHVRIDVVXPSWLRQV 'LIIHUHQFHVEHWZHHQH[SHFWHGDQG
DFWXDOH[SHULHQFH 1HWGLIIHUHQFHEHWZHHQSURMHFWHG
DQGDFWXDOHDUQLQJVRQSHQVLRQ
SODQLQYHVWPHQWV 7RWDO
7RWDO0LVFHOODQHRXVDQG6DIHW\3ODQV 93 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
7KH UHSRUWHG DV GHIHUUHG RXWIORZV RI UHVRXUFHV UHODWHG WR FRQWULEXWLRQV VXEVHTXHQW WR WKH PHDVXUHPHQWGDWHZLOOEHUHFRJQL]HGDVDUHGXFWLRQRIWKHQHWS HQVLRQOLDELOLW\LQWKH\HDUHQGHG-XQH 2WKHUDPRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVZLOO EHUHFRJQL]HGDVSHQVLRQH[SHQVHDVIROORZV
( 9DOOHMR)ORRGDQG:DVWHZDWHU'LVWULFW3HQVLRQ3ODQ
1. General Information about the District’s Pension Plan Plan Descriptions ± (OLJLEOH HPSOR\HHV RI WKH 'LVWULFW DUH SURYLGHG ZLWK SHQVLRQV WKURXJK WKH 'LVWULFW¶V 0LVFHOODQHRXV3ODQDFRVWVKDULQJPXOWLSOHHPSOR\HUGHILQHGEHQHILWSHQVLRQSODQVDGPLQLVWHUHGE\WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW 6\VWHP
&DO3(56
ZKLFK DFWV DV D FRPPRQ LQYHVWPHQW DQG
DGPLQLVWUDWLYHDJHQWIRULWVSDUWLFLSDWLQJPHPEHUHPSOR\HUV7KH'LVWULFW¶V0LVFHOODQHRXV3ODQLVSDUWRI WKHSXEOLF DJHQF\FRVWVKDULQJPXOWLSOHHPSOR\HUGHILQHGEHQHILWSHQVLRQSODQ 3(5)&
ZKLFKLV DGPLQLVWHUHGE\&DO3(56
3(5)&FRQVLVWVRIDPLVFHOODQHRXVSRRODQGDVDIHW\SRRO DOVRUHIHUUHGWRDV ³ULVNSRROV´
ZKLFKDUHFRPSULVHG
RILQGLYLGXDOHPSOR\HUPLVFHOODQHRXVDQGVDIHW\UDWHSODQVUHV SHFWLYHO\,QGLYLGXDOHPSOR\HUVPD\VSRQVRUPRUH WKDQ RQH PLVFHOODQHRXV DQG VDIHW\ UDWH SODQ7KH HPSOR\HUSDUWLFLSDWHVLQRQHFRVWVKDULQJPXOWLSOHHPSOR\HU GHILQHGEHQHILWSHQVLRQSODQUHJDUGOHVVRIWKH QXPEHURIUDWHSODQVWKHHPSOR\HUVSRQVRUV7KH'LVWULFWVSRQVRUV WZRUDWHSODQVZLWKLQWKHPLVFHOODQHRXV ULVNSRRO%HQHILWSURYLVLRQVXQGHUWKH3ODQDUHHVWDEOLVKHGE\6WDWHVWDWXWH DQG'LVWULFWUHVROXWLRQ &DO3(56 LVVXHV SXEOLFO\ DYDLODEOH UHSRUWV WKDWLQFOXGH DIXOOGHVFULSWLRQRI WKHSHQVLRQ SODQ UHJDUGLQJ EHQHILWSURYLVLRQVDVVXPSWLRQVDQGPHPEHUVKLSLQIRUPDWLRQWKDWFDQEHIRXQGRQWKH&DO3(56 ZHEVLWH
Benefits Provided ± &DO3(56 SURYLGHV VHUYLFH UHWLUHPHQW DQG GLVDELOLW\ EHQHILWVDQQXDO FRVW RI OLYLQJ DGMXVWPHQWVDQGGHDWKEHQHILWVWRSODQPHPEHUVZKRPXVWEHSXE OLFHPSOR\HHVDQGEHQHILFLDULHV%HQHILWV DUHEDVHGRQ\HDUVRIFUHGLWHGVHUYLFHHTXDOWRRQH\HDURIIXOOWLPHHPSOR\PHQW0HPEHUVZLWKILYH\HDUVRIWRWDO VHUYLFHDUHHOLJLEOHWRUHWLUHDWDJHZLWKVWDWXWRULO\UHGXF HGEHQHILWV $OOPHPEHUV DUHHOLJLEOHIRUQRQGXW\ GLVDELOLW\EHQHILWVDIWHU\HDUVRIVHUYLFH7KHGHDWKEHQHIL WLVRQHRIWKHIROORZLQJ WKH%DVLF'HDWK%HQHILW
WKH
6XUYLYRU%HQHILWRUWKH2SWLRQDO6HWWOHPHQW:'HDWK %HQHILW7KHFRVWRIOLYLQJDGMXVWPHQWVIRUWKH 3ODQ DUH DSSOLHG DV VSHFLILHG E\ WKH 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW/DZ7KH3HQVLRQ5HIRUP$FWRI
3(35$
$VVHPEO\%LOOLVDSSOLFDEOHWRHPSOR\HHVQHZWR&DO3(56DQGKLUHGDIWHU'HFHPEHU
0LVFHOODQHRXV 6DIHW\ 7RWDO
7RWDO $QQXDO$PRUWL]DWLRQV
0HDVXUHPHQW
3HULRGV(QGHG
-XQH
94 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
7KH3ODQ¶VSURYLVLRQVDQGEHQHILWVLQHIIHFWDW-XQHDUHVXPPDUL]HGDVIROORZV
Required Contributions ±6HFWLRQ
F
RIWKH&DOLIRUQLD3XEOLF(PSOR\HHV¶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
)RUWKH\HDUHQGHG-XQHWKH'LVWULFW¶VFRQWULEXWLRQVWRWKH3ODQZHUH
1. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
)RU SXUSRVHV RI PHDVXULQJ WKH QHW SHQVLRQ OLDELOLW\ DQG GHIHUUHG RXWIORZVLQIORZV RI UHVRXUFHV UHODWHG WR SHQVLRQV DQG SHQVLRQ H[SHQVH LQIRUPDWLRQ DERXW WKH ILGXFLDU\QHW SRVLWLRQ RI WKH 3ODQ DQG DGGLWLRQV WRGHGXFWLRQV IURP WKH 3ODQ¶V ILGXFLDU\ QHW SRVLWLRQ KDYH EHHQGHWHUPLQHG RQ WKH VDPH EDVLV DV WKH\ DUH UHSRUWHGE\WKH&DO3(56)LQDQFLDO2IILFH)RUWKLVSXUSRVHEHQ HILWSD\PHQWV LQFOXGLQJUHIXQGVRI HPSOR\HH
FRQWULEXWLRQV
DUHUHFRJQL]HGZKHQFXUUHQWO\GXHDQGSD\DEOHLQ DFFRUGDQFHZLWKWKHEHQHILWWHUPV,QYHVWPHQWV DUHUHSRUWHGDWIDLUYDOXH
$VRI-XQHWKH'LVWULFWUHSRUWHGLWVSURSRUWLRQDWHVK DUHRIWKHQHWSHQVLRQOLDELOLW\RIWKH3ODQRI
7KH'LVWULFW¶VQHWSHQVLRQOLDELOLW\LVPHDVXUHGDVWKHSURSRUW LRQDWHVKDUHRIWKHQHWSHQVLRQOLDELOLW\ 7KHQHW SHQVLRQOLDELOLW\RIWKH3ODQLVPHDVXUHGDVRI-XQH DQGWKHWRWDOSHQVLRQOLDELOLW\IRUWKH3ODQXVHGWR FDOFXODWHWKHQHWSHQVLRQOLDELOLW\ZDVGHWHUPLQHGE\DQDFWXDULDOYDOXDWLRQDVRI-XQHUROOHGIRUZDUGWR -XQH XVLQJ VWDQGDUG XSGDWH SURFHGXUHV 7KH 'LVWULFW¶VSURSRUWLRQ RI WKH QHW SHQVLRQOLDELOLW\ZDV EDVHG RQ D SURMHFWLRQ RI WKH 'LVWULFW¶V ORQJWHUP VKDUH RI FRQWULEXWLRQV WR WKH SHQVLRQ SODQV UHODWLYHWRWKH SURMHFWHGFRQWULEXWLRQVRIDOOSDUWLFLSDWLQJHPSOR\HUVDFWXDULDOO\GHWHUPLQHG7KH'LVWULFW¶VSURSRUWLRQDWHVKDUHRI WKHQHWSHQVLRQOLDELOLW\IRUWKH3ODQDVRI-XQHDQGZDVDVIROORZV
&ODVVLF7LHU, 3(35$
+LUH'DWH
3ULRUWR
-DQXDU\
2QRU$IWHU
-DQXDU\
%HQHILW)RUPXOD # #
%HQHILW9HVWLQJ6FKHGXOH \HDUVRIVHUYLFH \HDUVRIVHUYLFH %HQHILW3D\PHQWV PRQWKO\IRUOLIH PRQWKO\IRUOLIH
5HWLUHPHQW$JH
0RQWKO\%HQHILWVDVDRIHOLJLEOHFRPSHQVDWLRQ 5HTXLUHG(PSOR\HH&RQWULEXWLRQ5DWHV
5HTXLUHG(PSOR\HU&RQWULEXWLRQ5DWHV
0LVFHOODQHRXV
7KH UHTXLUHG HPSOR\HU FRQWULEXWLRQ UDWH LQFOXGHV WKH QRUPDO FRVW UDWH SOXV WKH HPSOR\HU XQIXQGHGDFFUXHGOLDELOLW\FRQWULEXWLRQDPRXQW
3URSRUWLRQ-XQH
3URSRUWLRQ-XQH
&KDQJH,QFUHDVH
'HFUHDVH
95 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
)RU WKH \HDU HQGHG -XQH WKH 'LVWULFW UHFRJQL]HG SHQVLRQ H[SHQVH FUHGLW
RI
$W-XQHWKH'LVWULFWUHSRUWHGGHIHUUHGRXWIORZVRIUH VRXUFHVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHG WRSHQVLRQVIURPWKHIROORZLQJVRXUFHV
7KH
UHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWRFRQWULEXWLRQVVXEVHTXHQWWRWKHPHDVXUHPHQW GDWHZLOOEHUHFRJQL]HGDVDUHGXFWLRQRIWKHQHWSHQVLRQOLDEL OLW\LQWKH\HDUHQGHG-XQH2WKHU DPRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVZLOOEH UHFRJQL]HGDVSHQVLRQH[SHQVHDVIROORZV
Changes in assumptions ± (IIHFWLYHZLWKWKH-XQHYDOXDWLRQGDWH PHDVXUH PHQWGDWH
WKH
DFFRXQWLQJGLVFRXQWUDWHZDVUHGXFHGIURPWR
Discount Rate ±7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ IRUWKH3ODQZDV 7KH
SURMHFWLRQRIFDVKIORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHIRUWKH3ODQDVVXPHGWKDWFRQWULEXWLRQVIURPDOOSODQ PHPEHUVLQWKH3XEOLF(PSOR\HHV5HWLUHPHQW)XQG
3(5)
ZLOOEH PDGHDWWKHFXUUHQWPHPEHUFRQWULEXWLRQ
UDWHVDQGWKDWFRQWULEXWLRQVIURPHPSOR\HUVZLOOEHPDGHDWVWDWXWRULO\UHTXLUHGUDWHVDFWXDULDOO\GHWHUPLQHG%DVHG RQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QHWSRVLWLRQZDVSUR MHFWHGWREHDYDLODEOHWRPDNHDOOSURMHFWHGIXWXUH EHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUVIRUDOOSODQVLQWKH3 (5)7KHUHIRUHWKHORQJWHUP H[SHFWHG UDWH RI UHWXUQ RQ SODQ LQYHVWPHQWV ZDV DSSOLHG WR DOO SHULRGV RI SURMHFWHG EHQHILWVSD\PHQWVWRGHWHUPLQHWKHWRWDO SHQVLRQOLDELOLW\IRUWKH3ODQ
7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFNPHWKRG LQZKLFKEHVWHVWLPDWHUDQJHVRIH[SHFWHGIXWXUHUHDOUDWHVRI UHWXUQ H[SHFWHGUHWXUQVQHWRISHQVLRQ SODQ
LQYHVWPHQWH[SHQVHDQGLQIODWLRQ
DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV
0LVFHOODQHRXV3ODQ9): '
'HIHUUHG2XWIORZV 'HIHUUHG,QIORZV
RI5HVRXUFHV RI5HVRXUFHV
3HQVLRQFRQWULEXWLRQVVXEVHTXHQWWRWKH
PHDVXUHPHQWGDWH
&KDQJHLQHPSOR\HU
VSURSRUWLRQ 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH
&KDQJHVLQDVVXPSWLRQV
'LIIIHUHQFHEHWZHHQHPSOR\HUFRQWULEXWLRQVDQGWKHHPSOR\HU V
SURSRUWLRQDWHVKDUHRIWKHULVNSRRO
VFRQWULEXWLRQV
1HWGLIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDOHDUQLQJVRQSODQ LQYHVWPHQWV 7RWDO
<HDU(QGHG
-XQH $QQXDO$PRUWL]DWLRQ
96 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ&DO3(56W RRNLQWRDFFRXQWERWKVKRUWWHUPDQGORQJWHUP PDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWHGSHQVLRQIXQG FDVKIORZV6XFKFDVKIORZVZHUHGHYHORSHG DVVXPLQJWKDWERWKPHPEHUVDQGHPSOR\HUVZLOOPDNHWKHLUUHTXLUHGFRQWULEXWLRQVRQWLPHDQGDVVFKHGXOHGLQDOO IXWXUH\HDUV8VLQJKLVWRULFDOUHWXUQVRIDOOWKHIXQGV¶DVVHW FODVVHVH[SHFWHGFRPSRXQG
JHRPHWULF
UHWXUQV
ZHUHFDOFXODWHGRYHUWKHVKRUWWHUP
ILUVW\HDUV
DQGWKHORQJWHUP
\HDUV
XVLQJDEXLOGLQJEORFNDSSURDFK
8VLQJWKHH[SHFWHGQRPLQDOUHWXUQVIRUERWKVKRUWWHUPDQGORQJWHUPWKHSUHVHQWYDOXHRIEHQHILWVZDVFDOFXODWHG IRUHDFKIXQG7KHH[SHFWHGUDWHRIUHWXUQZDVVHWE\FDOFXODWLQJWKHVLQJOHHTXLYDOHQWH[SHFWHGUHWXUQWKDWDUULYHG DWWKHVDPHSUHVHQWYDOXHRIEHQHILWVIRUFDVKIORZVDVWKHRQH FDOFXODWHGXVLQJERWKVKRUWWHUPDQGORQJWHUP UHWXUQV7KHH[SHFWHGUDWHRIUHWXUQZDVWKHQVHWHTXDOWRWKHVLQJOHHTXLYDOHQWUDWHFDOFXODWHGDERYHDQGDGMXVWHG WRDFFRXQWIRUWKHDVVXPHGDGPLQLVWUDWLYHH[SHQVHV
7KHH[SHFWHGUHDOUDWHVRIUHWXUQE\DVVHWFODVVDUHDVIROORZV
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate ±7KH IROORZLQJSUHVHQWVWKH'LVWULFW¶VSURSRUWLRQDWHVKDUHRIWKHQH WSHQVLRQOLDELOLW\IRUWKH3ODQFDOFXODWHGXVLQJWKH GLVFRXQWUDWHIRUWKH3ODQDVZHOODVZKDWWKH'LVWULFW¶VSURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQOLDELOLW\ZRXOGEHLILW ZHUHFDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLVSHUFHQWDJHSRLQWORZHURUSHUFHQWDJHSRLQWKLJKHUWKDQWKHFXUUHQW UDWH
$VVXPHGDVVHW
DOORFDWLRQ
5HDO5HWXUQ
<HDUV
/HYHUDJH
7RWDO
$Q([SHFWHG,QIODWLRQRIXVHGIRUWKLVSHULRG
)LJXUHVDUHEDVHGRQWKH$VVHW/LDELOLW\0DQDJHPHQWVWXG\ 5HDO$VVHWV
$VVHW&ODVV
*OREDO(TXLW\&DSZHLJKWHG
+LJK<LHOG
(PHUJLQJ0DUNHW'HEW
3ULYDWH(TXLW\
*OREDO(TXLW\1RQ&DSZHLJKWHG
7UHDVXU\
0RUWDJHEDFNHGVHFXULWLHV
,QYHVWPHQW*UDGH&RUSRUDWHV
3ULYDWH'HEW
0LVFHOODQHRXV
'HFUHDVH
,QFUHDVH
1HW3HQVLRQ/LDELOLW\
&XUUHQW'LVFRXQW5DWH
1HW3HQVLRQ/LDELOLW\
1HW3HQVLRQ/LDELOLW\
97 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3(16,213/$1
&217,18('
Pension Plan Fiduciary Net Position ±'HWDLOHGLQIRUPDWLRQDERXWHDFKSHQVLRQSODQ¶VILGXFLDU\QHW SRVLWLRQ LVDYDLODEOHLQWKHVHSDUDWHO\LVVXHG&DO3(56ILQDQFLDOUHSRUWV
1. Temporary and Seasonal Employees
)HGHUDOODZUHTXLUHVWKDWHPSOR\HHVQRWFRYHUHGE\DQHPSOR\HUUHWLUHPHQWV\VWHPEHFRYHUHGE\6RFLDO6HFXULW\ RUDQDOWHUQDWLYHSODQ7KH'LVWULFWKLUHVWHPSRUDU\HPSOR\HHVZKRVHSRVLWLRQVDUHH[HPSWIURP3(56PHPEHUVKLS DQGXWLOL]HV6RFLDO6HFXULW\IRUWKHVHSRVLWLRQV
127(
3267(03/2<0(17%(1(),76
$ 3RVW5HWLUHPHQW+HDOWK%HQHILWV&LW\
1. Plan Description
7KH&LW\¶V3RVW(PSOR\PHQW%HQHILW3ODQLVDQ$JHQW0XOWLSOH(P SOR\HU3ODQ(PSOR\HHVDQGWKHLUGHSHQGHQWV DUHHOLJLEOHIRUWKH&DO3(56SRVWUHWLUHPHQWKHDOWKEHQHILWVLI WKH\UHWLUHGLUHFWO\IURPWKH&LW\UHWDLQLQJWKH 3XEOLF(PSOR\HHV0HGLFDODQG+RVSLWDO&DUH$FW
3(0+&$
KHDOWK EHQHILWV7KH&LW\SD\VWKHUHWLUHHDQG
HOLJLEOH GHSHQGHQW SUHPLXPV XS WR EHQHILW OHYHO HVWDEOLVKHG LQWKH FROOHFWLYH EDUJDLQLQJDJUHHPHQWIRUHDFK HPSOR\HHRUJDQL]DWLRQ
98 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3267(03/2<0(17%(1(),76
&217,18('
7KHIROORZLQJLVDVXPPDU\RIEHQHILWVE\HPSOR\HHJURXSDVRI-XQH
2. Funding Policy
,QWKH&LW\KDVHVWDEOLVKHGDQLUUHYRFDEOHWUXVWZLWK&DOLIRUQLD(PSOR\HU V5HWLUHH%HQHILW7UXVW
&(5%7
DQ
DJHQWPXOWLSOHHPSOR\HUSODQDGPLQLVWHUHGE\&$/3(56&(5%7LV IXQGHGE\HPSOR\HUFRQWULEXWLRQVIRUWKH SXUSRVHRISUHIXQGLQJWKH&LW\
V23(%REOLJDWLRQV&(5%7SURYLGHVDQDQQXDOILQDQFLDOUHSRUWWKDWPD\EHREWDLQHG IURP WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW6\VWHP&(5%732%R[ 6DFUDPHQWR&DOLIRUQLD
)RUWKH\HDUHQGHG-XQHWKH&LW\¶VFRQWULEXWLRQVWRWKH3ODQZHUH 7KH3(0+&$PLQLPXPLQLVSHUPRQWK
+LUHG RQ RU DIWHU 3(0+&$ PLQLPXP SOXV RI HPSOR\HH
VEDVHPRQWKO\VDODU\5+6$FRQWULEXWLRQ
+LUHG EHIRUH XS WR SHU PRQWK EXW QRW OHVV WKDQ 3(0+&$ PLQLPXP
ZLWK WKH RSWLRQ RI HOHFWLQJ QR ODWHU WKDQ
WKH 5+6$ EHQHILW DYDLODEOH WR &$03 HPSOR\HHV KLUHG RQRUDIWHU
,QWHUQDWLRQDO%URWKHUKRRGRI(OHFWULFDO:RUNHUV
,%(:
+LUHG EHIRUH XS WR SHU PRQWK EXW QRW OHVV WKDQ 3(0+&$ PLQLPXP
ZLWK WKH RSWLRQ RI HOHFWLQJ QR ODWHU WKDQ
WKH 5+6$ EHQHILW DYDLODEOH WR &$03 HPSOR\HHV KLUHGRQRUDIWHU
+LUHG RQ RU DIWHU 3(0+&$ PLQLPXP SOXV RI HPSOR\HH
VEDVHPRQWKO\VDODU\5+6$FRQWULEXWLRQ
&RQILGHQWLDO $GPLQLVWUDWLYH 0DQDJHPHQW DQG 3URIHVVLRQDO (PSOR\HHV$VVRFLDWLRQ
&$03
,QWHUQDWLRQDO$VVRFLDWLRQRI)LUH)LJKWHUV
,$))
5HWLUHG SULRU WR XS WR RI .DLVHU %D\ $UHD QRQ0HGLFDUH3UHPLXP
5HWLUHG RQ RU DIWHU XS WR SHU PRQWK EXW QRW OHVV WKDQ3(0+&$PLQLPXP
&RXQFLODQG8QUHSUHVHQWHG 8SWRSHUPRQWKQRWQRWOHVVWKD Q3(0+&$PLQLPXP 9DOOHMR3ROLFH2IILFHUV$VVRFLDWLRQ
932$
LPSRVHG
(PSOR\HH*URXS &RQWUDFWXDO%HQHILWDW-XQH
+LUHG RQ RU DIWHU 3(0+&$ PLQLPXP SOXV RI
HPSOR\HH
V EDVH PRQWKO\ VDODU\ 5HWLUHH +HDOWK 6DYLQJV $FFRXQW
5+6$
FRQWULEXWLRQ
5HWLUHG RQ RU DIWHU DQG KLUHG EHIRUH XS WR SHUPRQWKEXWQRWOHVVWKDQ3(0+&$PLQLPXP
5HWLUHG SULRU WR XS WR RI .DLVHU %D\ $UHD QRQ0HGLFDUH3UHPLXP
99 &,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3267(03/2<0(17%(1(),76
&217,18('
3. General Information About City’s OPEB Plan
Employees Covered by Benefit Terms – 0HPEHUVKLSLQWKHSODQFRQVLVWHGRIWKHIROORZLQJDWWKH PHDVXUHPHQW GDWHRI-XQH
7RWDO
$FWLYH(PSOR\HHV
,QDFWLYH (PSOR\HHV RU EHQHILFLDULHV FXUUHQWO\ UHFHLYLQJ EHQHILWSD\PHQWV
,QDFWLYH (PSOR\HHV HQWLWOHG WR EXW QRW \HW UHFHLYLQJ
EHQHILWSD\PHQWV
Net OPEB Liability – 7KH&LW\¶VQHW23(%OLDELOLW\ZDVPHDVXUHGDVRI-XQHDQGWKHWRWDO23(%OLDELOLW\ XVHGWRFDOFXODWHWKHQHW23(%OLDELOLW\ZDVGHWHUPLQHGE\DQD FWXDULDO YDOXDWLRQGDWHG-XQHEDVHG RQWKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV
7KH QHW23(%OLDELOLW\ ZDV GHWHUPLQHG DV SDUW RI D -XQH DFWXDULDOYDOXDWLRQXVLQJWKHHQWU\DJH QRUPDODFWXDULDOFRVWPHWKRG7KLVLVDSURMHFWHGEHQHILWFRVWPHWKRGZKLFKWDNHVLQWRDFFRXQWWKRVHEHQHILWVWKDW DUHH[SHFWHGWREHHDUQHGLQWKHIXWXUHDVZHOODVWKRVHDOUHDG \DFFUXHG7KHDFWXDULDODVVXPSWLRQVLQFOXGHG
D
LQYHVWPHQWUDWHRIUHWXUQ
E
JHQHUDOLQIODWLR QUDWHDQG
F
QRQ0HGLFDUH
DQG
0HGLFDUH
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
UHSUHVHQWLQJ
WKHSUHVHQWYDOXHRIIXWXUHEHQHILWVLVEHLQJDPRUWL]HGDVDOHYHOSHUFHQWDJHRISURMHFWHGSD\UROOXVLQJD\HDU DPRUWL]DWLRQSHULRG
7KHXQGHUO\LQJPRUWDOLW\DVVXPSWLRQVZHUHEDVHGRQWKH&DO3(56 H[SHULHQFHVWXG\DQGDOORWKHU
DFWXDULDODVVXPSWLRQVXVHGLQWKH-XQHYDOXDWLRQZHUHEDVHGRQWKHUHVXOWVRIWKHDFWXDULDO H[SHULHQFH VWXG\IRUWKHSHULRG
7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ23(%SODQLQYHVWPHQWV ZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFN PHWKRG LQ ZKLFK H[SHFWHG IXWXUH UHDO UDWHV RI UHWXUQ
H[SHFWHG UHWXUQV QHW RI 23(% SODQ LQYHVWPHQW H[SHQVHDQG
LQIODWLRQ
DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV7KHVHUDQJHVDUHFRPELQHGWRSURGXFHWKH ORQJWHUPH[SHFWHG UDWHRIUHWXUQE\ZHLJKWLQJWKHH[SHFWHGIXWXUHUHDOUDWHVRIU HWXUQE\WKHWDUJHWDVVHW DOORFDWLRQSHUFHQWDJHDQG E\DGGLQJH[SHFWHGLQIODWLRQ
7KHWDUJHWDOORFDWLRQDQGEHVWHVWLPDWHVRI DULWKPHWLFUHDOUDWHVRIUHWXUQIRUHDFKPDMRUDVVHWFODVVDUHVXPPDUL]HG LQWKHIROORZLQJWDEOH
7DUJHW$OORFDWLRQ
&(5%76WUDWHJ\
([SHFWHG5HDO
5DWHRI5HWXUQ
7,36
5(,7V
([SHFWHG/RQJ7HUP1HW5DWHRI5HWXUQ
$VVHW&ODVV
*OREDO(TXLW\
)L[HG,QFRPH
&RPPRGLWLHV
$VVXPHG/RQJ7HUP5DWHRI,QIODWLRQ
100
&,7<2)9$//(-2
1RWHVWR)LQDQFLDO6WDWHPHQWV
<HDU(QGHG-XQH
127(
3267(03/2<0(17%(1(),76
&217,18('
Discount Rate – 7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDO23(%OLDELOLW\ZDVXSGDWHGIURPWR 7KHSURMHFWLRQRI FDVKIORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDW&LW\FRQWULEXWLRQVZLOOEHPDGHDWUDWHV HTXDOWR WKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHV%DVHGRQWKRVHDVVXPSWLRQVWKH23(%SODQ¶VILGXFLDU\QHW SRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNHDOOSURMHFWHG23 (%SD\PHQWVIRUFXUUHQWDFWLYHDQGLQDFWLYH HPSOR\HHVDQGEHQHILFLDULHV7KHUHIRUHWKHORQJWHUPH[SHFWHG UDWHRIUHWXUQRQ23(%SODQLQYHVWPHQWVZDV DSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDO23(%OLDELOLW\