N-Q 1 e611821_nq-tfto.htm AQUILA TAX-FREE TRUST OF OREGON 12/31/2013 FORM N-Q Unassociated Document
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-4626

Aquila Tax-Free Trust of Oregon
(sole series of The Cascades Trust)
(Exact Name of Registrant as Specified in Charter)

380 Madison Avenue, Suite 2300
New York, New York 10017
(Address of Principal Executive Offices)(Zip Code)

Registrant's Telephone Number, including Area Code: (212) 697-6666

Joseph P. DiMaggio, Chief Financial Officer and Treasurer
380 Madison Avenue, Suite 2300
New York, New York 10017
(Name and address of Agent for Service)

Date of fiscal year end: March 31, 2013

Date of reporting period: December 31, 2013




Item 1. Schedule of Investments.

Schedule of investments as of the close of the reporting period as set forth in subsection 210.12-12 - 12-14 of Regulation S-X (17 CFR 210.12-12 - 12-14)
 
 
 
 
 
AQUILA TAX-FREE TRUST OF OREGON
SCHEDULE OF INVESTMENTS
December 31, 2013
(unaudited)
 
Amount
  
General Obligation Bonds (50.3%)
  
Ratings Moody's, S&P and Fitch
  
Value
    
(a)
  
                     
   
City & County (5.0%)
                
                     
   
Bend, Oregon
                
$ 2,435,000  
4.000%, 06/01/24
  
Aa2/NR/NR
   $ 2,583,145          
                           
     
Canby, Oregon
                    
  1,405,000  
4.000%, 12/01/24 AGMC Insured
  
A2/NR/NR
     1,458,882          
  1,060,000  
5.000%, 06/01/27
  
A2/NR/NR
     1,125,275          
                           
     
Clackamas County, Oregon Refunding
                    
  1,135,000  
4.000%, 06/01/24
  
Aa2/NR/NR
     1,195,473          
                           
     
Clackamas County, Oregon Tax Allocation
                    
  705,000  
6.500%, 05/01/20
  
NR/NR/NR*
     709,738          
                           
     
Hillsboro, Oregon
                    
  380,000  
3.500%, 06/01/15 Series B
  
Aa3/NR/NR
     394,147          
  390,000  
3.500%, 06/01/16 Series B
  
Aa3/NR/NR
     413,072          
  345,000  
3.500%, 06/01/17 Series B
  
Aa3/NR/NR
     367,384          
                           
     
Lebanon, Oregon Refunding
                    
  1,050,000  
5.000%, 06/01/24
  
A2/NR/NR
     1,169,091          
                           
     
Portland, Oregon
                    
  4,920,000  
4.350%, 06/01/23
  
Aa1/NR/NR
     4,926,052          
                           
     
Portland, Oregon Public Safety
                    
  2,130,000  
4.125%, 06/01/26 Series A
  
Aaa/NR/NR
     2,221,739          
                           
     
Portland, Oregon Revenue Limited Tax, Improvement
                    
  950,000  
4.000%, 06/01/22 Series A
  
Aa1/NR/NR
     980,448          
                           
     
Redmond, Oregon Refunding
                    
  735,000  
5.000%, 06/01/23 Series A
  
A1/NR/NR
     816,401          
                           
     
City of Salem, Oregon
                    
  1,585,000  
4.000%, 06/01/17
  
NR/AA-/NR
     1,741,820          
  1,750,000  
5.000%, 06/01/29
  
NR/AA-/NR
     1,872,990          
                           
     
Washington County, Oregon
                    
  2,465,000  
5.000%, 06/01/23
  
Aa1/NR/NR
     2,665,626          
                           
     
Total City & County
         24,641,283          
                           
     
Community College (5.9%)
                    
                           
     
Central Oregon Community College District
                    
  1,850,000  
4.750%, 06/15/22
  
NR/AA+/NR
     2,074,257          
  2,195,000  
4.750%, 06/15/23
  
NR/AA+/NR
     2,436,384          
  2,175,000  
4.750%, 06/15/26
  
NR/AA+/NR
     2,370,032          
                           
     
Chemeketa, Oregon Community College District
                    
  1,385,000  
5.500%, 06/01/14 ETM FGIC Insured
  
NR/NR/NR*
     1,414,251          
                           
     
Chemeketa, Oregon Community College District
                    
  1,010,000  
5.500%, 06/15/24
  
NR/AA+/NR
     1,164,439          
  1,235,000  
5.000%, 06/15/25
  
NR/AA+/NR
     1,354,968          
  1,540,000  
5.000%, 06/15/26
  
NR/AA+/NR
     1,676,767          
 
 
 
 
 
     
Clackamas, Oregon Community College District
                    
  1,535,000  
5.000%, 05/01/25 NPFG Insured
  
Aa3/AA/NR
     1,609,463          
                           
     
Columbia Gorge, Oregon Community College District, Refunding
                    
  1,000,000  
4.000%, 06/15/24
  
Aa1/NR/NR
     1,057,290          
                           
     
Lane, Oregon Community College
                    
  1,840,000  
5.000%, 06/15/24
  
NR/AA+/NR
     2,095,171          
                           
     
Oregon Coast Community College District State
                    
  1,590,000  
5.250%, 06/15/17 NPFG Insured (pre-refunded)
  
Aa1/NR/NR
     1,625,425          
  1,770,000  
5.000%, 06/15/25
  
Aa1/NR/NR
     1,993,055          
                           
     
Portland, Oregon Community College District
                    
  7,915,000  
5.000%, 06/15/28
  
Aa1/AA/NR
     8,601,547          
                           
     
Total Community College
         29,473,049          
                           
                           
     
Higher Education (2.5%)
                    
                           
     
Oregon State, Oregon University System
                    
  1,090,000  
5.000%, 08/01/25 Series N
  
Aa1/AA+/AA+
     1,261,435          
  1,170,000  
4.000%, 08/01/25 Series B
  
Aa1/AA+/AA+
     1,243,312          
  1,745,000  
4.000%, 08/01/26 Series C
  
Aa1/AA+/AA+
     1,829,947          
                           
     
 Oregon State, Oregon University System Projects
                    
  2,365,000  
4.000%, 08/01/26 Series H
  
Aa1/AA+/AA+
     2,457,448          
                           
     
State of Oregon Board of Higher Education
                    
  820,000  
zero coupon, 08/01/16
  
Aa1/AA+/AA+
     792,653          
  1,125,000  
5.000%, 08/01/21 Series A (pre-refunded)
  
NR/NR/NR*
     1,207,170          
  875,000  
5.000%, 08/01/21 Series A (pre-refunded)
  
Aa1/AA+/NR
     939,969          
  500,000  
5.750%, 08/01/29 Series A (pre-refunded)
  
Aa1/AA+/NR
     602,095          
  1,000,000  
5.000%, 08/01/34
  
Aa1/AA+/AA+
     1,072,530          
  1,000,000  
5.000%, 08/01/38
  
Aa1/AA+/AA+
     1,065,960          
                           
     
Total Higher Education
         12,472,519          
                           
     
Housing (0.2%)
                    
                           
     
State of Oregon Veterans' Welfare
                    
  550,000  
4.800%, 12/01/22
  
Aa1/AA+/AA+
     578,870          
  400,000  
4.900%, 12/01/26
  
Aa1/AA+/AA+
     417,412          
                           
     
Total Housing
         996,282          
                           
     
School District  (24.8%)
                    
                           
     
Clackamas County, Oregon School District #12 (North Clackamas)
                    
  8,000,000  
5.000%, 06/15/27 AGMC Insured Series B
  
Aa1/AA+/NR
     8,553,120          
  9,250,000  
5.000%, 06/15/29 AGMC Insured
  
Aa1/AA+/NR
     9,848,753          
                           
     
Clackamas County, Oregon School District #46 (Oregon Trail)
                    
  1,000,000  
5.000%, 06/15/22
  
NR/AA+/NR
     1,116,360          
  1,865,000  
5.000%, 06/15/28 Series A
  
NR/AA+/NR
     2,002,674          
  1,800,000  
5.000%, 06/15/29 Series A
  
NR/AA+/NR
     1,922,742          
  2,000,000  
4.500%, 06/15/30 AGMC Insured
  
Aa1/AA+/NR
     2,061,160          
  2,000,000  
5.000%, 06/15/32 Series A
  
NR/AA+/NR
     2,100,020          
  3,780,000  
4.750%, 06/15/32 Series A
  
NR/AA+/NR
     3,885,802          
                           
     
Clackamas County, Oregon School District #86 (Canby)
                    
  1,800,000  
5.000%, 06/15/24
  
Aa1/AA+/NR
     2,056,806          
  1,110,000  
5.000%, 06/15/25 Series A
  
Aa1/AA+/NR
     1,258,651          
 
 
 
 
 
     
Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)
                    
  1,110,000  
5.000%, 06/15/26
  
Aa1/AA+/NR
     1,229,658          
  2,850,000  
5.000%, 06/15/27
  
Aa1/AA+/NR
     3,160,280          
  2,000,000  
4.500%, 06/15/29
  
Aa1/AA+/NR
     2,067,300          
  1,965,000  
5.000%, 06/15/30
  
Aa1/AA+/NR
     2,120,176          
  3,000,000  
5.000%, 06/15/33
  
Aa1/AA+/NR
     3,193,890          
  500,000  
5.000%, 06/15/34
  
Aa1/AA+/NR
     530,795          
                           
     
Columbia County, Oregon School District #502
                    
  2,070,000  
zero coupon, 06/01/15 NPFG/ FGIC Insured
  
Aa3/A/NR
     2,023,115          
                           
     
Columbia & Washington Counties, Oregon School District #47J (Vernonia)
                    
  3,430,000  
5.00%, 06/15/27
  
NR/AA+/NR
     3,728,822          
                           
     
Deschutes County, Oregon School District #6 (Sisters)
                    
  1,735,000  
5.250%, 06/15/19 AGMC Insured
  
A2/AA+/NR
     2,001,513          
  1,030,000  
5.250%, 06/15/21 AGMC Insured
  
A2/AA+/NR
     1,187,384          
                           
     
Deschutes and Jefferson Counties, Oregon School District #02J (Redmond)
                    
  1,000,000  
5.000%, 06/15/21 NPFG/ FGIC Insured
  
Aa1/NR/NR
     1,016,750          
  1,025,000  
zero coupon, 06/15/23
  
Aa1/NR/NR
     724,870          
  5,000,000  
6.000%, 06/15/31 (pre-refunded)
  
Aa1/NR/NR
     6,047,100          
                           
     
Hood River County, Oregon School District Refunding
                    
  365,000  
3.000%, 06/15/14
  
NR/AA+/NR
     369,278          
  385,000  
3.000%, 06/15/15
  
NR/AA+/NR
     397,524          
  250,000  
4.000%, 06/15/16
  
NR/AA+/NR
     268,358          
                           
     
Jackson County, Oregon School District #9 (Eagle Point)
                    
  2,080,000  
5.500%, 06/15/15 NPFG Insured
  
Aa1/NR/NR
     2,220,962          
  1,445,000  
5.500%, 06/15/16 NPFG Insured
  
Aa1/NR/NR
     1,599,745          
                           
     
Jackson County, Oregon School District #549C (Medford)
                    
  1,000,000  
4.625%, 06/15/27
  
Aa1/AA+/NR
     1,046,810          
  2,000,000  
4.750%, 12/15/29 AGMC Insured
  
Aa1/AA+/NR
     2,086,940          
  1,000,000  
5.000%, 06/15/33
  
Aa1/AA+/NR
     1,047,430          
                           
     
Jefferson County, Oregon School District #509J
                    
  1,400,000  
5.000%, 06/15/25
  
Aa1/NR/NR
     1,582,140          
                           
     
Klamath County, Oregon School District
                    
  1,250,000  
5.000%, 06/15/24
  
NR/AA+/NR
     1,419,125          
                           
     
Lane County, Oregon School District #4J (Eugene) Refunding
                    
  1,000,000  
5.000%, 07/01/15
  
Aa1/NR/NR
     1,070,650          
  1,130,000  
4.000%, 06/15/23
  
Aa1/NR/NR
     1,203,371          
  2,455,000  
4.000%, 06/15/25
  
Aa1/NR/NR
     2,566,040          
                           
     
Lane County, Oregon School District #19 (Springfield)
                    
  3,425,000  
zero coupon, 06/15/29 AGMC Insured
  
Aa1/NR/NR
     1,696,711          
                           
     
Lincoln County, Oregon School District
                    
  2,370,000  
4.000%, 06/15/24 Series A
  
Aa1/NR/NR
     2,491,557          
                           
     
Marion & Clackamas Counties, Oregon School District #4J (Silver Falls)
                    
  1,260,000  
5.000%, 06/15/24
  
Aa1/NR/NR
     1,446,997          
                           
     
Morrow County, Oregon School District #1
                    
  1,710,000  
5.250%, 06/15/19 AGMC Insured
  
A2/AA+/NR
     1,972,673          
                           
     
Multnomah County, Oregon School District #7 (Reynolds) Refunding
                    
  1,165,000  
5.000%, 06/01/29
  
Aa3/NR/NR
     1,256,907          
                           
     
Multnomah County, Oregon School District #40 (David Douglas)
                    
  1,500,000  
5.000%, 06/15/23 Series A
  
NR/AA+/NR
     1,714,005          
                           
     
Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow)
                    
  4,275,000  
5.250%, 06/15/19 AGMC Insured
  
Aa1/AA+/NR
     5,003,417          
                           
     
Multnomah and Clackamas Counties, Oregon School District #28JT (Centennial)
                    
  2,680,000  
5.250%, 12/15/18 AGMC Insured
  
Aa1/NR/NR
     3,145,114          
 
 
 
 
 
     
Polk, Marion & Benton Counties, Oregon School District #13J (Central)
                    
  1,520,000  
5.000%, 06/15/21 AGMC Insured (pre-refunded)
  
A2/AA+/NR
     1,736,843          
                           
     
Salem-Keizer, Oregon School District #24J
                    
  1,000,000  
5.000%, 06/15/19 AGMC Insured (pre-refunded)
  
Aa1/AA+/NR
     1,021,180          
                           
     
Wasco County, Oregon School District #12 (The Dalles)
                    
  1,400,000  
5.500%, 06/15/17 AGMC Insured
  
A2/AA-/NR
     1,593,158          
  1,790,000  
5.500%, 06/15/20 AGMC Insured
  
A2/AA-/NR
     2,091,758          
                           
     
Washington County, Oregon School District #48J (Beaverton)
                    
  2,275,000  
4.000%, 06/15/23 Series B
  
Aa1/AA+/NR
     2,422,670          
  4,290,000  
4.000%, 06/15/24 Series B
  
Aa1/AA+/NR
     4,519,515          
  2,750,000  
4.000%, 06/15/25
  
Aa1/AA+/NR
     2,864,098          
  1,280,000  
5.000%, 06/01/31 AGC Insured
  
Aa3/AA-/NR
     1,358,310          
  1,000,000  
5.125%, 06/01/36 AGC Insured
  
Aa3/AA-/NR
     1,062,210          
                           
     
Washington Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)
                    
  1,535,000  
4.000%, 06/15/25
  
Aa1/NR/NR
     1,615,971          
                           
     
Yamhill County, Oregon School District #40 (McMinnville)
                    
  1,205,000  
5.000%, 06/15/19 AGMC Insured (pre-refunded)
  
Aa1/NR/NR
     1,376,905          
  1,375,000  
5.000%, 06/15/22 AGMC Insured (pre-refunded)
  
Aa1/NR/NR
     1,571,158          
                           
     
Total School Districts
         122,677,271          
                           
     
Special District (2.3%)
                    
                           
     
Bend, Oregon Metropolitan Park & Recreational District
                    
  1,430,000  
4.000%, 06/01/27
  
Aa3/NR/NR
     1,432,188          
                           
     
Metro, Oregon
                    
  1,100,000  
5.000%, 06/01/18
  
Aaa/AAA/NR
     1,237,709          
  5,140,000  
4.000%, 06/01/26 Series A
  
Aaa/AAA/NR
     5,383,019          
                           
     
Tualatin Hills, Oregon Park & Recreational District
                    
  1,000,000  
4.250%, 06/01/24
  
Aa1/AA/NR
     1,097,600          
                           
     
Tualatin Valley, Oregon Fire & Rescue Rural Fire Protection District
                    
  1,235,000  
4.000%, 06/01/26
  
Aaa/NR/NR
     1,291,402          
  1,170,000  
4.000%, 06/01/27
  
Aaa/NR/NR
     1,213,290          
                           
     
Total Special District
         11,655,208          
                           
     
State (8.7%)
                    
                           
     
Oregon State Alternative Energy Project
                    
  1,255,000  
4.750%, 04/01/29 Series B
  
Aa1/AA+/AA+
     1,316,621          
  500,000  
6.000%, 10/01/29 Series B
  
Aa1/AA+/AA+
     566,320          
                           
     
Oregon State Department of Administrative Services
                    
  3,270,000  
5.000%, 11/01/27 Series C
  
Aa2/AA/AA
     3,441,577          
  2,155,000  
5.000%, 11/01/28 Series C
  
Aa2/AA/AA
     2,260,078          
  5,000,000  
5.125%, 05/01/33
  
Aa2/AA/AA
     5,198,800          
                           
     
Oregon State Department of Administrative Services
                    
  2,000,000  
5.000%, 11/01/20 NPFG/ FGIC Insured (pre-refunded)
  
Aa2/AA/AA
     2,171,200          
  2,660,000  
5.000%, 11/01/23 NPFG FGIC/ Insured (pre-refunded)
  
Aa2/AA/AA
     2,997,873          
  2,945,000  
5.000%, 11/01/24 NPFG/ FGIC Insured (pre-refunded)
  
Aa2/AA/AA
     3,319,074          
  1,475,000  
5.000%, 11/01/26 NPFG/ FGIC Insured (pre-refunded)
  
Aa2/AA/AA
     1,662,355          
  3,880,000  
5.000%, 11/01/27 NPFG/ FGIC Insured (pre-refunded)
  
Aa2/AA/AA
     4,372,838          
                           
     
Oregon State Department of Administrative Services, Oregon Opportunity Refunding
                    
  6,210,000  
5.000%, 12/01/19
  
Aa1/AA+/AA+
     7,350,094          
                           
     
Oregon State Refunding
                    
  3,000,000  
5.000%, 05/01/23 Series L
  
Aa1/AA+/AA+
     3,449,400          
  1,125,000  
5.000%, 05/01/24 Series L
  
Aa1/AA+/AA+
     1,278,315          
                           
     
Oregon State Refunding Various Projects
                    
  2,125,000  
4.000%, 05/01/25 Series O
  
Aa1/AA+/AA+
     2,229,508          
 
 
 
 
 
     
Oregon State Various Projects
                    
  1,470,000  
4.000%, 11/01/26 Series M
  
Aa1/AA+/AA+
     1,526,022          
                           
     
Total State
         43,140,075          
                           
     
Water & Sewer (0.9%)
                    
                           
     
Gearheart, Oregon
                    
  1,060,000  
4.500%, 03/01/26 AGMC Insured
  
A2/NR/NR
     1,126,589          
                           
     
Pacific City, Oregon Joint Water - Sanitary Authority
                    
  1,830,000  
4.800%, 07/01/27
  
NR/NR/NR*
     1,839,919          
                           
     
Rockwood, Oregon Water Peoples Utility District Water Revenue Refunding
                    
  1,270,000  
4.250%, 08/15/26
  
A1/NR/NR
     1,363,828          
                           
     
Total Water & Sewer
         4,330,336          
                           
     
Total General Obligation Bonds
         249,386,023          
                           
     
Revenue Bonds (48.6%)
                    
                           
     
City & County (5.1%)
                    
                           
     
Local Oregon Capital Assets Program COP Cottage Grove
                    
  2,375,000  
5.000%, 09/15/25 Series 2013A
  
Baa2/NR/NR
     2,452,900          
                           
     
Newport, Oregon Urban Renewal Obligations, Refunding
                    
  565,000  
4.500%, 06/15/22 Series B
  
NR/AA-/NR
     603,075          
                           
     
Portland, Oregon
                    
  2,975,000  
zero coupon, 06/01/15
  
Aa1/NR/NR
     2,930,137          
                           
     
Portland, Oregon Revenue Refunding Limited Tax, Oregon Convention Center
                    
  2,825,000  
5.000%, 06/01/24
  
Aa1/NR/NR
     3,183,888          
  4,265,000  
5.000%, 06/01/27
  
Aa1/NR/NR
     4,670,559          
                           
     
Portland, Oregon Revenue Refunding Limited Tax
                    
  1,000,000  
4.000%, 04/01/22 Series A
  
Aa1/NR/NR
     1,061,130          
                           
     
Portland, Oregon River District Urban Renewal and Redevelopment
                    
  1,600,000  
5.000%, 06/15/22 Series B
  
A1/NR/NR
     1,793,936          
  1,830,000  
5.000%, 06/15/23 Series B
  
A1/NR/NR
     2,026,268          
                           
     
Portland, Oregon Urban Renewal and Redevelopment, Refunding, North Macadam
                    
  1,000,000  
4.000%, 06/15/25 Series B
  
A1/NR/NR
     983,740          
                           
     
Portland, Oregon Urban Renewal Tax Allocation (Interstate Corridor)
                    
  1,890,000  
5.250%, 06/15/20 NPFG/ FGIC Insured
  
A1/NR/NR
     1,943,052          
  1,810,000  
5.250%, 06/15/21 NPFG/ FGIC Insured
  
A1/NR/NR
     1,852,825          
  2,030,000  
5.000%, 06/15/23 NPFG/ FGIC Insured
  
A1/NR/NR
     2,066,093          
                           
     
Total City & County
         25,567,603          
                           
     
Electric (2.0%)
                    
                           
     
Eugene, Oregon  Electric Utility
                    
  5,635,000  
5.000%, 08/01/30
  
Aa3/AA-/A+
     5,904,015          
                           
     
Eugene, Oregon  Electric Utility Refunding System
                    
  2,000,000  
5.000%, 08/01/27 Series A
  
Aa3/AA-/A+
     2,193,760          
                           
     
Northern Wasco County, Oregon Peoples Utility District, McNary Dam Fishway Hydroelectric Project, Refunding
                    
  1,585,000  
5.000%, 12/01/21 Series A
  
NR/AA-/NR
     1,812,511          
                           
     
Total Electric
         9,910,286          
 
 
 
 
 
     
Higher Education (7.1%)
                    
                           
     
Forest Grove, Oregon Campus Improvement (Pacific University Project)
                    
  1,500,000  
6.000%, 05/01/30
  
NR/BBB/NR
     1,515,105          
                           
     
Forest Grove, Oregon (Pacific University)
                    
  4,000,000  
5.000%, 05/01/22 Radian Insured
  
NR/BBB/NR
     4,061,520          
                           
     
Forest Grove, Oregon Student Housing (Oak Tree Foundation)
                    
  5,750,000  
5.500%, 03/01/37
  
NR/NR/NR*
     5,311,218          
                           
     
Oregon State Facilities Authority (Lewis & Clark College Project)
                    
  1,000,000  
5.250%, 10/01/24 Series A
  
A3/A-/NR
     1,101,980          
  3,000,000  
5.000%, 10/01/27 Series A
  
A3/A-/NR
     3,150,870          
                           
     
Oregon State Facilities Authority (Linfield College Project)
                    
  2,830,000  
5.000%, 10/01/20 Series A 2005
  
Baa1/NR/NR
     2,894,015          
  2,115,000  
5.000%, 10/01/25 Series A 2005
  
Baa1/NR/NR
     2,137,969          
  1,220,000  
5.000%, 10/01/31 Series A 2010
  
Baa1/NR/NR
     1,224,758          
                           
     
Oregon State Facilities Authority Revenue Refunding (Reed College Project)
                    
  1,500,000  
5.000%, 07/01/29 Series A
  
Aa2/AA-/NR
     1,606,170          
                           
     
Oregon State Facilities Authority (University of Portland)
                    
  3,000,000  
5.000%, 04/01/32
  
NR/BBB+/NR
     2,891,970          
                           
     
Oregon State Facilities Authority (Willamette University)
                    
  1,000,000  
4.000%, 10/01/24
  
NR/A/NR
     1,009,300          
  2,500,000  
5.000%, 10/01/32
  
NR/A/NR
     2,557,900          
                           
     
Portland, Oregon Economic Development (Broadway Project)
                    
  5,000,000  
6.500%, 04/01/35
  
A1/A/NR
     5,533,600          
                           
     
Total Higher Education
         34,996,375          
                           
     
Hospital (11.8%)
                    
                           
     
Deschutes County, Oregon Hospital Facilities Authority (Cascade Health)
                    
  3,500,000  
8.000%, 01/01/28
  
A2/NR/NR
     4,200,665          
  3,250,000  
5.375%, 01/01/35 AMBAC Insured
  
A2/NR/NR
     3,385,168          
                           
     
Medford, Oregon Hospital Facilities Authority Revenue Refunding, Asante Health Systems
                    
  9,000,000  
5.500%, 08/15/28 AGMC Insured
  
NR/AA-/NR
     9,588,510          
                           
     
Multnomah County, Oregon Hospital Facilities Authority (Adventist Health/West)
                    
  500,000  
5.000%, 09/01/21
  
NR/A/A
     546,180          
                           
     
Multnomah County, Oregon Hospital Facilities Authority (Providence Health System)
                    
  1,390,000  
5.250%, 10/01/22 (pre-refunded)
  
Aa2/AA/AA
     1,441,597          
                           
     
Oregon Health Sciences University
                    
  11,550,000  
zero coupon, 07/01/21 NPFG Insured
  
A1/A+/A+
     8,950,326          
  2,000,000  
5.000%, 07/01/23 Series A
  
A1/A+/A+
     2,238,860          
  4,500,000  
5.750%, 07/01/39 Series A
  
A1/A+/A+
     4,806,765          
                           
     
Oregon State Facilities Authority Revenue Refunding, Legacy Health Systems
                    
  2,000,000  
4.250%, 03/15/17
  
A1/A+/NR
     2,164,880          
  3,000,000  
4.500%, 03/15/18
  
A1/A+/NR
     3,294,960          
  1,000,000  
4.750%, 03/15/24
  
A1/A+/NR
     1,041,830          
  1,000,000  
5.000%, 03/15/30
  
A1/A+/NR
     1,019,650          
                           
     
Oregon State Facilities Authority Revenue Refunding, Samaritan Health Services
                    
  1,500,000  
4.375%, 10/01/20
  
NR/BBB+/NR
     1,605,045          
  2,000,000  
4.500%, 10/01/21
  
NR/BBB+/NR
     2,120,240          
  1,520,000  
5.000%, 10/01/23
  
NR/BBB+/NR
     1,619,970          
  1,795,000  
4.875%, 10/01/25
  
NR/BBB+/NR
     1,851,507          
  2,000,000  
5.000%, 10/01/30
  
NR/BBB+/NR
     2,007,800          
                           
     
Salem, Oregon Hospital Facility Authority (Salem Hospital)
                    
  2,000,000  
5.750%, 08/15/23
  
NR/A/A
     2,152,840          
  1,075,000  
5.000%, 08/15/27 Series A
  
NR/A/A
     1,100,800          
 
 
 
 
 
     
State of Oregon Health Housing Educational and Cultural Facilities Authority (Peacehealth)
                    
  1,835,000  
5.250%, 11/15/17 AMBAC Insured
  
NR/A+/AA-
     1,840,193          
  1,430,000  
5.000%, 11/15/32 AMBAC Insured
  
NR/A+/AA-
     1,430,758          
                           
     
Total Hospital
         58,408,544          
                           
     
Housing (1.1%)
                    
                           
     
Clackamas County, Oregon Housing Authority Multifamily Housing Revenue (Easton Ridge Apartments Project)
                    
  1,310,000  
4.000%, 09/01/27 Series A
  
Aa3/NR/NR
     1,278,940          
                           
     
Portland, Oregon Urban Renewal and Redevelopment, Interstate Corridor
                    
  1,390,000  
5.000%, 06/15/27 Series B
  
A2/NR/NR
     1,430,838          
                           
     
State of Oregon Housing and Community Services
                    
  1,540,000  
4.650%, 07/01/25
  
Aa2/NR/NR
     1,561,853          
  1,040,000  
5.350%, 07/01/30
  
Aa2/NR/NR
     1,070,389          
                           
     
Total Housing
         5,342,020          
                           
     
Lottery (3.8%)
                    
                           
     
Oregon State Department of Administration Services (Lottery Revenue)
                    
  2,700,000  
5.000%, 04/01/19 AGMC Insured (pre-refunded)
  
Aa2/AAA/AA-
     2,731,212          
  1,500,000  
5.000%, 04/01/25 Series B
  
Aa2/AAA/NR
     1,690,590          
  7,300,000  
5.250%, 04/01/26
  
Aa2/AAA/NR
     8,284,697          
  3,000,000  
5.000%, 04/01/27 AGMC Insured
  
Aa2/AAA/A+
     3,233,580          
  2,500,000  
5.000%, 04/01/29
  
Aa2/AAA/NR
     2,732,900          
                           
     
Total Lottery
         18,672,979          
                           
     
Transportation (5.0%)
                    
                           
     
Jackson County, Oregon Airport Revenue
                    
  750,000  
5.250%, 12/01/32 Syncora Guarantee, Inc. Insured
  
Baa1/NR/NR
     766,935          
                           
     
Oregon State Department Transportation Highway Usertax
                    
  1,200,000  
5.000%, 11/15/22 Series A (pre-refunded)
  
Aa1/AAA/AA+
     1,249,368          
  1,260,000  
5.000%, 11/15/23 Series A (pre-refunded)
  
Aa1/AAA/AA+
     1,311,836          
  1,000,000  
5.000%, 11/15/29 Series A (pre-refunded)
  
Aa1/AAA/AA+
     1,041,140          
                           
     
Oregon State Department Transportation Highway Usertax, Senior Lien
                    
  1,865,000  
5.000%, 11/15/23 Series A
  
Aa1/AAA/AA+
     2,110,397          
  2,000,000  
4.625%, 11/15/25 Series A
  
Aa1/AAA/AA+
     2,156,620          
  1,000,000  
5.000%, 11/15/26 Series A
  
Aa1/AAA/AA+
     1,146,560          
  3,540,000  
4.625%, 11/15/26 Series A
  
Aa1/AAA/AA+
     3,721,142          
  2,155,000  
5.000%, 11/15/28 Series A
  
Aa1/AAA/AA+
     2,308,824          
                           
     
Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt
                    
  1,685,000  
5.000%, 10/01/24 Series A
  
A2/A/NR
     1,853,719          
  3,480,000  
5.000%, 10/01/26 Series A
  
A2/A/NR
     3,772,007          
  3,000,000  
5.000%, 10/01/27 Series A
  
A2/A/NR
     3,222,510          
                           
     
Total Transportation
         24,661,058          
                           
     
Water and Sewer (12.7%)
                    
                           
     
Ashland, Oregon Refunding
                    
  1,025,000  
4.000%, 05/01/17 AGMC Insured
  
NR/AA-/NR
     1,125,737          
                           
     
Grants Pass, Oregon
                    
  1,000,000  
4.000%, 12/01/23
  
NR/AA-/NR
     1,063,970          
                           
     
Klamath Falls, Oregon Water
                    
  1,575,000  
5.500%, 07/01/16 AGMC Insured
  
A2/AA-/NR
     1,656,648          
                           
     
Lane County, Oregon Metropolitan Wastewater
                    
  2,500,000  
5.250%, 11/01/28
  
Aa2/AA/NR
     2,652,475          
                           
     
Madras, Oregon
                    
  725,000  
4.500%, 02/15/27
  
Baa1/NR/NR
     719,294          
 
 
 
 
 
     
Portland, Oregon Sewer System, Second Lien
                    
  3,005,000  
5.000%, 03/01/28 Series A
  
Aa3/AA-/NR
     3,287,230          
                           
     
Portland Oregon Sewer System Revenue Refunding Second Lien
                    
  5,000,000  
5.000%, 06/15/33 Series B
  
Aa3/AA-/NR
     5,226,350          
                           
     
Portland, Oregon Sewer System
                    
  4,595,000  
5.000%, 06/01/17 AGMC Insured
  
Aa2/AA/NR
     4,864,313          
  4,410,000  
5.000%, 06/15/25 NPFG Insured
  
Aa3/AA-/NR
     4,677,026          
  4,630,000  
5.000%, 06/15/26 NPFG Insured
  
Aa3/AA-/NR
     4,891,178          
  1,610,000  
5.000%, 06/15/27 NPFG Insured
  
Aa3/AA-/NR
     1,697,681          
                           
     
Portland, Oregon Water System Revenue Refunding
                    
  1,275,000  
4.000%, 05/01/25 Series A
  
Aaa/NR/NR
     1,334,377          
                           
     
Prineville, Oregon Refunding
                    
  1,255,000  
4.400%, 06/01/29 AGMC Insured
  
NR/AA-/NR
     1,298,285          
                           
     
Salem, Oregon Water & Sewer
                    
  1,000,000  
5.375%, 06/01/15 AGMC Insured ETM
  
Aa3/AA-/NR
     1,071,280          
                           
     
Seaside, Oregon Wastewater System
                    
  1,000,000  
4.250%, 07/01/26
  
A3/NR/NR
     1,016,030          
                           
     
Sunrise Water Authority, Oregon
                    
  2,630,000  
5.000%, 03/01/19 AGMC Insured
  
A2/AA-/NR
     2,641,914          
  1,350,000  
5.250%, 03/01/24 AGMC Insured
  
A2/AA-/NR
     1,354,577          
  1,000,000  
5.000%, 09/01/25 Syncora Guarantee, Inc.
  
NR/NR/NR*
     1,012,110          
                           
     
Tigard, Oregon Water System Revenue Refunding
                    
  2,025,000  
4.000%, 08/01/21
  
A1/AA-/NR
     2,168,269          
  2,565,000  
5.000%, 08/01/24
  
A1/AA-/NR
     2,873,877          
                           
     
Washington County, Oregon Clean Water Services
                    
  2,235,000  
5.250%, 10/01/15 NPFG Insured
  
Aa2/AA/NR
     2,426,517          
  4,000,000  
5.000%, 10/01/28
  
Aa2/AA/NR
     4,330,760          
                           
     
Washington County, Oregon Clean Water Services Sewer Revenue Senior Lien
                    
  1,010,000  
4.000%, 10/01/22 Series B
  
Aa2/AA/NR
     1,079,953          
  1,500,000  
4.000%, 10/01/23 Series B
  
Aa2/AA/NR
     1,584,765          
  2,850,000  
4.000%, 10/01/26 Series B
  
Aa2/AA/NR
     2,935,985          
  2,745,000  
4.000%, 10/01/28 Series B
  
Aa2/AA/NR
     2,781,371          
                           
     
Woodburn, Oregon Wastewater Revenue Refunding
                    
  1,090,000  
5.000%, 03/01/21 Series A
  
A2/NR/NR
     1,203,502          
                           
     
Total Water and Sewer
         62,975,474          
                           
     
Total Revenue Bonds
         240,534,339          
                           
     
Total Investments (cost $474,115,254-note b)
  
98.9%
     489,920,362          
     
Other assets less liabilities
  
1.1
     5,589,058          
     
Net Assets
  
100.0%
   $ 495,509,420          
                           
     
* Any security not rated ("NR") by any of the Nationally Recognized Statistical Rating Organizations ("NRSRO" or "Credit Rating Agency") has been determined by the Investment Sub-Adviser to have sufficient quality to be ranked in the top credit four ratings if a credit rating were to be assigned by  a NRSRO.
                
                           
         
Percent of
                
     
Portfolio Distribution By Quality Rating
  
Investments †
                
                           
     
Aaa of Moody's or AAA of S&P
  
                     8.2
 %            
     
Pre-refunded bonds ††/ Escrowed to Maturity bonds
  
                     8.3
                
     
Aa of Moody's or AA of S&P or Fitch
  
                   60.0
                
     
A of Moody's or S&P or Fitch
  
                   16.0
                
     
Baa of Moody's or BBB of S&P
  
                     5.7
                
     
Not rated*
  
                     1.8
                
         
                100.0
 %            
                           
     
† Where applicable, calculated using the highest rating of the three NRSRO.
                    
                           
     
†† Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.
                
 
 
 
 
 
                           
     
PORTFOLIO ABBREVIATION:
                    
     
AGC - Assured Guaranty Corp.
                    
     
AGMC - Assured Guaranty Municipal Corp.
                    
     
AMBAC - American Municipal Bond Assurance Corp.
                    
     
COP- Certificates of Participation
                    
     
ETM - Escrowed to Maturity
                    
     
FGIC - Financial Guaranty Insurance Co.
                    
     
NPFG - National Public Finance Guarantee
                    
     
NR - Not Rated
                    
                           
 See accompanying notes to financial statements.
 
 
 
 
 
 
AQUILA TAX-FREE TRUST OF OREGON
 NOTES TO FINANCIAL STATEMENTS
December 31, 2013
(unaudited)
 
(a) Securities valuation policies and other investment related disclosures are hereby incorporated by reference in the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR. 
 
(b) At December 31, 2013, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $473,852,472 amounted to $16,067,890, which consisted of aggregate gross unrealized appreciation of $21,248,819 and aggregate gross unrealized depreciation of $5,180,929.
 
(c) Fair Value Measurements: The Trust follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Trust’s investments and are summarized in the following fair value hierarchy:
 
Level 1 – Unadjusted quoted prices in inactive markets for identical assets or liabilities that the Trust has the ability to access.
 
Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
 
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
 
The following is a summary of the valuation inputs, representing 100% of the Trust’s investments, used to value the Trust’s net assets as of December 31, 2013:
 
Valuation Inputs
 
  
Investments in Securities
  
 Level 1 – Quoted Prices
   $ -  
 Level 2 – Other Significant Observable Inputs-Municipal Bonds+
     489,920,362  
 Level 3 – Significant Unobservable Inputs
     -  
    $ 489,920,362  
 +See schedule of investments for a detailed listing of securities.
 
 
 
 
 
Item 2. Controls and Procedures.

(a)  The T's chief financial and executive officers have evaluated the Trust's disclosure controls and procedures within 90 days of this filing and have concluded that the Trust's disclosure controls and procedures were effective, as of this date, in ensuring that information required to be disclosed by the Trust in this Form N-Q was recorded, processed, summarized and reported timely.

(b) The Trust's chief financial and executive officers are aware of no changes in the Trust's internal control over financial reporting that occurred during the Trust's latest fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 3. Exhibits.

Filed as exhibits as part of this Form are separate certifications for each chief financial and executive officer of the registrant as required by Rule 30a-2(a) under the Act(17 CFR 270.30a-2(a)).
 
 
 
 
 
Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
AQUILA TAX-FREE TRUST OF OREGON
(sole series of The Cascades Trust)
    
     
       
By:
/s/ Diana P. Herrmann
    
 
Diana P. Herrmann
    
 
Vice Chair, President and Trustee
    
 
February 20, 2014      
    
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
       
By:
/s/ Diana P. Herrmann
    
 
Diana P. Herrmann
    
 
Vice Chair, President and Trustee
    
 
February 20, 2014      
    
       
       
By:
/s/ Joseph P. DiMaggio
    
 
Joseph P. DiMaggio
    
 
Chief Financial Officer and Treasurer
    
 
February 20, 2014