N-Q

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

The Cascades Trust

(Exact Name of Registrant as Specified in Charter)

120 West 45th Street, Suite 3600

New York, New York  10036

(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

120 West 45th Street, Suite 3600

New York, New York 10036

(Name and address of Agent for Service)

Date of fiscal year end: March 31, 2015

Date of reporting period: December 31, 2015

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, 2015

(unaudited)

Amount		General Obligation Bonds (54.7%)	Ratings Moody's, S&P and Fitch	Value		(a)
		City & County (4.5%)
		Bend, Oregon
$	2,435,000	4.000%, 06/01/24	Aa2/NR/NR	$	2,713,881
		Canby, Oregon
	1,405,000	4.000%, 12/01/24 AGMC Insured	A2/NR/NR		1,543,786
	1,060,000	5.000%, 06/01/27	A2/NR/NR		1,222,657
		Clackamas County, Oregon Refunding
	1,135,000	4.000%, 06/01/24	Aa2/NR/NR		1,276,580
		Clackamas County, Oregon Tax Allocation
	705,000	6.500%, 05/01/20	NR/NR/NR*		712,043
		Gresham, Oregon Full Faith and Credit Refunding and Project Obligations
	1,545,000	5.000%, 05/01/23	Aa3/NR/NR		1,880,219
		Hillsboro, Oregon
	390,000	3.500%, 06/01/16 Series B	Aa3/NR/NR		394,973
	345,000	3.500%, 06/01/17 Series B	Aa3/NR/NR		358,362
		Lebanon, Oregon Refunding
	1,050,000	5.000%, 06/01/24	A2/NR/NR		1,245,080
		Lebanon, Oregon Refunding
	1,165,000	5.000%, 06/01/25	A1/NR/NR		1,415,300
		McMinnville, Oregon Refunding
	2,075,000	5.000%, 02/01/27	Aa3/NR/NR		2,529,342
		Portland, Oregon Public Safety
	1,345,000	5.000%, 06/15/25 Series A	Aaa/NR/NR		1,701,156
	2,130,000	4.125%, 06/01/26 Series A	Aaa/NR/NR		2,274,521
		Portland, Oregon Limited Tax, Improvement
	630,000	4.000%, 06/01/22 Series A	Aa1/NR/NR		636,344
	525,000	4.000%, 06/01/24 Series A	Aa1/NR/NR		574,865
		Redmond, Oregon Refunding
	735,000	5.000%, 06/01/23 Series A	A1/NR/NR		863,985
		City of Salem, Oregon
	1,585,000	4.000%, 06/01/17	NR/AA/NR		1,658,100
	1,750,000	5.000%, 06/01/29	NR/AA/NR		1,954,278
		Washington County, Oregon
	2,465,000	5.000%, 06/01/23	Aa1/NR/NR		2,560,100
		Total City & County			27,515,572
		Community College (5.6%)
		Blue Mountain Community College District, Umatilla County
	970,000	4.000%, 06/15/27	NR/AA+/NR		1,094,296
		Central Oregon Community College District
	1,850,000	4.750%, 06/15/22	NR/AA+/NR		2,114,254
	2,195,000	4.750%, 06/15/23	NR/AA+/NR		2,502,432
	2,175,000	4.750%, 06/15/26	NR/AA+/NR		2,469,604

	Chemeketa, Oregon Community College District
1,010,000	5.500%, 06/15/24 (pre-refunded)	NR/AA+/NR	1,121,686
2,000,000	5.000%, 06/15/25	NR/AA+/NR	2,477,920
1,235,000	5.000%, 06/15/25 (pre-refunded)	NR/AA+/NR	1,356,697
1,540,000	5.000%, 06/15/26 (pre-refunded)	NR/AA+/NR	1,691,752
	Clackamas, Oregon Community College District
1,535,000	5.000%, 05/01/25 NPFG Insured (pre-refunded)	Aa3/AA/NR	1,558,409
1,405,000	5.000%, 06/15/27 Series A	Aa1/AA+/NR	1,709,309
	Columbia Gorge, Oregon Community College District, Refunding
1,000,000	4.000%, 06/15/24	Aa1/NR/NR	1,115,180
	Lane, Oregon Community College
1,840,000	5.000%, 06/15/24	NR/AA+/NR	2,195,359
	Linn Benton, Oregon Community College
1,520,000	5.000%, 06/01/27	NR/AA+/NR	1,872,427
	Oregon Coast Community College District State
1,770,000	5.000%, 06/15/25	Aa1/NR/NR	2,104,725
	Portland, Oregon Community College District
7,915,000	5.000%, 06/15/28	Aa1/AA/NR	8,877,622
	Total Community College		34,261,672
	Higher Education (2.0%)
	Oregon State Higher Education
1,000,000	5.000%, 08/01/25 Series C	Aa1/AA+/AA+	1,238,720
1,795,000	5.000%, 08/01/27 Series C	Aa1/AA+/AA+	2,207,599
	Oregon State, Oregon University System
1,170,000	4.000%, 08/01/25 Series B	Aa1/AA+/AA+	1,310,306
1,090,000	5.000%, 08/01/25 Series N	Aa1/AA+/AA+	1,335,784
	Oregon State, Oregon University System Projects
2,365,000	4.000%, 08/01/26 Series H	Aa1/AA+/AA+	2,579,174
	State of Oregon Board of Higher Education
820,000	zero coupon, 08/01/16	Aa1/AA+/AA+	817,901
500,000	5.750%, 08/01/29 Series A (pre-refunded)	Aa1/AA+/NR	560,640
1,000,000	5.000%, 08/01/34 (pre-refunded)	Aa1/AA+/NR	1,102,290
1,000,000	5.000%, 08/01/38 (pre-refunded)	Aa1/AA+/NR	1,102,290
	Total Higher Education		12,254,704
	Housing (0.2%)
	State of Oregon Veterans' Welfare
550,000	4.800%, 12/01/22	Aa1/AA+/AA+	579,194
400,000	4.900%, 12/01/26	Aa1/AA+/AA+	421,556
	Total Housing		1,000,750
	School District (29.8%)
	Clackamas County, Oregon School District #12 (North Clackamas)
2,450,000	5.000%, 06/15/25	Aa1/AA+/NR	3,024,697
1,500,000	5.000%, 06/15/26	Aa1/AA+/NR	1,836,180
8,000,000	5.000%, 06/15/27 AGMC Insured Series B (pre-refunded)	Aa1/AA+/NR	8,494,960
9,250,000	5.000%, 06/15/29 AGMC Insured (pre-refunded)	Aa1/AA+/NR	9,822,298

	Clackamas County, Oregon School District #46 (Oregon Trail)
1,000,000	5.000%, 06/15/22	NR/AA+/NR	1,129,540
1,865,000	5.000%, 06/15/28 Series A	NR/AA+/NR	2,093,164
1,800,000	5.000%, 06/15/29 Series A	NR/AA+/NR	2,015,694
2,000,000	4.500%, 06/15/30 AGMC Insured (pre-refunded)	Aa1/AA+/NR	2,109,420
2,000,000	5.000%, 06/15/32 Series A	NR/AA+/NR	2,226,800
3,780,000	4.750%, 06/15/32 Series A	NR/AA+/NR	4,147,832
	Clackamas County, Oregon School District #62 (Oregon City)
1,000,000	5.000%, 06/01/29 MAC Insured	A1/AA/NR	1,166,130
	Clackamas County, Oregon School District #86 (Canby)
1,800,000	5.000%, 06/15/24	Aa1/AA+/NR	2,146,428
1,110,000	5.000%, 06/15/25 Series A	Aa1/AA+/NR	1,319,912
	Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)
1,110,000	5.000%, 06/15/26 (pre-refunded)	Aa1/AA+/NR	1,254,999
3,500,000	5.000%, 06/15/26	Aa1/AA+/NR	4,341,470
5,500,000	5.000%, 06/15/27	Aa1/AA+/NR	6,785,295
2,850,000	5.000%, 06/15/27 (pre-refunded)	Aa1/AA+/NR	3,222,296
1,115,000	5.000%, 06/15/28	Aa1/AA+/NR	1,365,987
2,000,000	4.500%, 06/15/29 (pre-refunded)	Aa1/AA+/NR	2,227,600
1,965,000	5.000%, 06/15/30 (pre-refunded)	Aa1/AA+/NR	2,221,688
3,000,000	5.000%, 06/15/33 (pre-refunded)	Aa1/AA+/NR	3,391,890
500,000	5.000%, 06/15/34 (pre-refunded)	Aa1/AA+/NR	565,315
	Columbia & Washington Counties, Oregon School District #47J (Vernonia)
3,430,000	5.00%, 06/15/27	NR/AA+/NR	3,948,753
	Deschutes County, Oregon School District #6 (Sisters)
1,735,000	5.250%, 06/15/19 AGMC Insured	A2/AA+/NR	1,965,547
1,030,000	5.250%, 06/15/21 AGMC Insured	A2/AA+/NR	1,229,315
	Deschutes and Jefferson Counties, Oregon School District #02J (Redmond)
80,000	5.000%, 06/15/21 NPFG/ FGIC Insured	Aa1/NR/NR	80,279
1,025,000	zero coupon, 06/15/23	Aa1/NR/NR	872,911
5,000,000	6.000%, 06/15/31 (pre-refunded)	Aa1/NR/NR	5,606,650
	Hood River County, Oregon School District Refunding
250,000	4.000%, 06/15/16	NR/AA+/NR	253,878
	Jackson County, Oregon School District #9 (Eagle Point)
1,445,000	5.500%, 06/15/16 NPFG Insured	Aa1/NR/NR	1,476,963
	Jackson County, Oregon School District #549C (Medford)
1,000,000	4.625%, 06/15/27 (pre-refunded)	Aa1/AA+/NR	1,088,230
2,000,000	4.750%, 12/15/29 AGMC Insured (pre-refunded)	Aa1/AA+/NR	2,150,680
1,000,000	5.000%, 06/15/33 (pre-refunded)	Aa1/AA+/NR	1,097,260
	Jefferson County, Oregon School District #509J
1,400,000	5.000%, 06/15/25	Aa1/NR/NR	1,691,200
	Klamath County, Oregon School District
1,250,000	5.000%, 06/15/24	NR/AA+/NR	1,517,713
	Lane County, Oregon School District #4J (Eugene) Refunding
1,130,000	4.000%, 06/15/23	Aa1/NR/NR	1,263,284
2,850,000	4.000%, 06/15/24	Aa1/NR/NR	3,191,031
4,575,000	5.000%, 06/15/26	Aa1/NR/NR	5,580,585
	Lane County, Oregon School District #19 (Springfield)
1,000,000	5.000%, 06/15/25	Aa1/AA+/NR	1,240,420
1,735,000	5.000%, 06/15/27	Aa1/AA+/NR	2,140,452
3,425,000	zero coupon, 06/15/29 AGMC Insured (pre-refunded)	Aa1/NR/NR	1,938,927
	Lincoln County, Oregon School District
2,370,000	4.000%, 06/15/24 Series A	Aa1/NR/NR	2,601,668
	Marion County, Oregon School District #103 (Woodburn)
2,140,000	5.000%, 06/15/27	Aa1/NR/NR	2,642,151
2,260,000	5.000%, 06/15/28	Aa1/NR/NR	2,775,190

	Marion & Clackamas Counties, Oregon School District #4J (Silver Falls)
1,260,000	5.000%, 06/15/24	Aa1/NR/NR	1,537,666
	Morrow County, Oregon School District #1
1,710,000	5.250%, 06/15/19 AGMC Insured	A2/AA+/NR	1,945,279
	Multnomah County, Oregon School District #1J (Portland)
2,970,000	5.000%, 06/15/26 Series B	Aa1/AA+/NR	3,721,499
	Multnomah County, Oregon School District #7 (Reynolds)
5,680,000	5.000%, 06/15/26 Series A	Aa1/NR/NR	7,089,549
1,500,000	5.000%, 06/15/27 Series A	Aa1/NR/NR	1,860,630
1,825,000	5.000%, 06/15/28 Series A	Aa1/NR/NR	2,249,732
	Multnomah County, Oregon School District #7 (Reynolds) Refunding
1,165,000	5.000%, 06/01/29	Aa3/NR/NR	1,323,160
	Multnomah County, Oregon School District #40 (David Douglas)
1,500,000	5.000%, 06/15/23 Series A	NR/AA+/NR	1,795,740
	Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow)
4,275,000	5.250%, 06/15/19 AGMC Insured	Aa1/AA+/NR	4,846,140
	Multnomah and Clackamas Counties, Oregon School District #28JT (Centennial)
2,680,000	5.250%, 12/15/18 AGMC Insured	Aa1/NR/NR	2,958,345
	Polk, Marion & Benton Counties, Oregon School District #13J (Central)
1,520,000	5.000%, 06/15/21 AGMC Insured (pre-refunded)	A2/AA+/NR	1,612,902
1,515,000	4.000%, 02/01/28	NR/AA+/NR	1,693,149
	Union County, Oregon School District #1 (La Grande)
1,000,000	5.000%, 06/15/27	Aa1/NR/NR	1,215,650
	Wasco County, Oregon School District #12 (The Dalles)
1,400,000	5.500%, 06/15/17 AGMC Insured	A2/AA/NR	1,495,382
1,790,000	5.500%, 06/15/20 AGMC Insured	A2/AA/NR	2,099,903
	Washington County, Oregon School District #48J (Beaverton)
2,750,000	4.000%, 06/15/25	Aa1/AA+/NR	3,086,160
2,275,000	4.000%, 06/15/23 Series B	Aa1/AA+/NR	2,582,557
5,290,000	4.000%, 06/15/24 Series B	Aa1/AA+/NR	5,960,508
3,000,000	5.000%, 06/15/25 Series 2014B	Aa1/AA+/NR	3,703,710
3,000,000	5.000%, 06/15/28 Series 2014B	Aa1/AA+/NR	3,641,310
1,845,000	5.000%, 06/15/29 Series 2014B	Aa1/AA+/NR	2,225,218
1,280,000	5.000%, 06/01/31 AGC Insured	Aa3/AA/NR	1,419,059
1,000,000	5.125%, 06/01/36 AGC Insured	Aa3/AA/NR	1,104,370
	Washington Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)
1,535,000	4.000%, 06/15/25	Aa1/NR/NR	1,717,696
	Yamhill County, Oregon School District #40 (McMinnville)
1,205,000	5.000%, 06/15/19 AGMC Insured (pre-refunded)	Aa1/NR/NR	1,278,650
1,375,000	5.000%, 06/15/22 AGMC Insured (pre-refunded)	Aa1/NR/NR	1,459,040
2,255,000	4.000%, 06/15/26	Aa1/NR/NR	2,525,623
	Total School Districts		181,411,309
	Special District (4.0%)
	Bend, Oregon Metropolitan Park & Recreational District
1,430,000	4.000%, 06/01/27	Aa3/NR/NR	1,577,161
	Metro, Oregon
1,100,000	5.000%, 06/01/18 (pre-refunded)	Aaa/AAA/NR	1,166,220
4,000,000	4.000%, 06/01/26 Series A	Aaa/AAA/NR	4,420,200

	Tualatin Hills, Oregon Park & Recreational District
3,480,000	5.000%, 06/01/23	Aa1/NR/NR	4,262,026
4,725,000	5.000%, 06/01/24	Aa1/NR/NR	5,861,693
1,000,000	4.250%, 06/01/24 (pre-refunded)	Aa1/AA/NR	1,104,210
2,775,000	5.000%, 06/01/26	Aa1/NR/NR	3,471,803
	Tualatin Valley, Oregon Fire & Rescue Rural Fire Protection District
1,235,000	4.000%, 06/01/26	Aaa/NR/NR	1,352,918
1,170,000	4.000%, 06/01/27	Aaa/NR/NR	1,279,828
	Total Special District		24,496,059
	State of Oregon (7.9%)
	Oregon State
750,000	5.000%, 05/01/25 Series A	Aa1/AA+/AA+	927,465
	Oregon State Alternative Energy Project
1,255,000	4.750%, 04/01/29 Series B	Aa1/AA+/AA+	1,393,012
500,000	6.000%, 10/01/29 Series B	Aa1/AA+/AA+	569,780
	Oregon State Article XI-G Community College Projects
1,160,000	5.000%, 08/01/27 Series J	Aa1/AA+/AA+	1,454,814
	Oregon State Article XI-G Higher Education
500,000	5.000%, 08/01/25 Series O	Aa1/AA+/AA+	630,045
1,000,000	5.000%, 08/01/26 Series O	Aa1/AA+/AA+	1,257,120
1,000,000	5.000%, 08/01/27 Series O	Aa1/AA+/AA+	1,254,150
	Oregon State Department of Administrative Services
3,270,000	5.000%, 11/01/27 Series C	Aa2/AA/AA	3,694,544
2,155,000	5.000%, 11/01/28 Series C	Aa2/AA/AA	2,429,655
5,000,000	5.125%, 05/01/33	Aa2/AA/AA	5,524,700
	Oregon State Department of Administrative Services
2,660,000	5.000%, 11/01/23 NPFG/ FGIC Insured (pre-refunded)	Aa2/AA/NR	2,760,202
2,945,000	5.000%, 11/01/24 NPFG/ FGIC Insured (pre-refunded)	Aa2/AA/NR	3,055,938
1,475,000	5.000%, 11/01/26 NPFG/ FGIC Insured (pre-refunded)	Aa2/AA/NR	1,530,563
3,880,000	5.000%, 11/01/27 NPFG/ FGIC Insured (pre-refunded)	Aa2/AA/NR	4,026,160
	Oregon State Department of Administrative Services, Oregon Opportunity Refunding
6,210,000	5.000%, 12/01/19	Aa1/AA+/AA+	7,109,581
	Oregon State Higher Education
1,000,000	5.000%, 08/01/28 Series A	Aa1/AA+/AA+	1,247,260
	Oregon State Refunding
3,000,000	5.000%, 05/01/23 Series L	Aa1/AA+/AA+	3,560,190
1,125,000	5.000%, 05/01/24 Series L	Aa1/AA+/AA+	1,328,096
2,125,000	4.000%, 05/01/25 Series O	Aa1/AA+/AA+	2,326,046
	Oregon State Various Projects
1,470,000	4.000%, 11/01/26 Series M	Aa1/AA+/AA+	1,606,196
	Total State of Oregon		47,685,517
	Water & Sewer (0.7%)
	Gearheart, Oregon
1,060,000	4.500%, 03/01/26 AGMC Insured	A2/NR/NR	1,180,310
	Pacific City, Oregon Joint Water - Sanitary Authority
1,830,000	4.800%, 07/01/27	NR/NR/NR*	1,853,021
	Rockwood, Oregon Water Peoples Utility District Water Revenue Refunding
1,270,000	4.250%, 08/15/26	A1/NR/NR	1,390,472
	Total Water & Sewer		4,423,803
	Total General Obligation Bonds		333,049,386

	Revenue Bonds (42.1%)
	City & County (2.9%)
	Local Oregon Capital Assets Program COP Cottage Grove
2,375,000	5.000%, 09/15/25 Series 2013A	Baa2/NR/NR	2,580,271
	Newport, Oregon Urban Renewal Obligations, Refunding
565,000	4.500%, 06/15/22 Series B	NR/AA-/NR	644,880
	Portland, Oregon Revenue Refunding Limited Tax, Oregon Convention Center
2,825,000	5.000%, 06/01/24	Aa1/NR/NR	3,334,630
4,265,000	5.000%, 06/01/27	Aa1/NR/NR	4,993,334
	Portland, Oregon Revenue Refunding Limited Tax
1,000,000	4.000%, 04/01/22 Series A	Aa1/NR/NR	1,078,340
	Portland, Oregon River District Urban Renewal and Redevelopment
1,600,000	5.000%, 06/15/22 Series B	A1/NR/NR	1,902,576
1,830,000	5.000%, 06/15/23 Series B	A1/NR/NR	2,157,826
	Portland, Oregon Urban Renewal and Redevelopment, Refunding, North Macadam
1,000,000	4.000%, 06/15/25 Series B	A1/NR/NR	1,067,890
	Total City & County		17,759,747
	Electric (1.7%)
	Eugene, Oregon  Electric Utility
5,635,000	5.000%, 08/01/30	Aa3/AA-/A+	6,118,314
	Eugene, Oregon  Electric Utility Refunding System
2,000,000	5.000%, 08/01/27 Series A	Aa3/AA-/A+	2,317,000
	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	1,839,852
	Total Electric		10,275,166
	Higher Education (4.7%)
	Forest Grove, Oregon Student Housing (Oak Tree Foundation)
5,715,000	5.500%, 03/01/37	NR/NR/NR*	5,836,901
	Oregon State Facilities Authority (Lewis & Clark College Project)
1,000,000	5.250%, 10/01/24 Series A	A3/A-/NR	1,167,010
3,000,000	5.000%, 10/01/27 Series A	A3/A-/NR	3,438,060
	Oregon State Facilities Authority (Linfield College Project)
1,180,000	5.000%, 10/01/22 Series A	Baa1/NR/NR	1,342,191
1,000,000	5.000%, 10/01/23 Series A	Baa1/NR/NR	1,140,830
1,220,000	5.000%, 10/01/31 Series A 2010	Baa1/NR/NR	1,334,826
	Oregon State Facilities Authority Revenue Refunding (Reed College Project)
1,500,000	5.000%, 07/01/29 Series A	Aa2/AA-/NR	1,697,670
	Oregon State Facilities Authority (University of Portland)
3,000,000	5.000%, 04/01/32 (pre-refunded)	NR/BBB+/NR	3,270,960
	Oregon State Facilities Authority (Willamette University)
1,000,000	4.000%, 10/01/24	NR/A/NR	1,083,360
2,500,000	5.000%, 10/01/32	NR/A/NR	2,644,025
	Portland, Oregon Economic Development (Broadway Project)
5,000,000	6.500%, 04/01/35	A1/A/NR	5,540,550
	Total Higher Education		28,496,383

	Hospital (9.2%)
	Deschutes County, Oregon Hospital Facilities Authority (Cascade Health)
3,500,000	8.000%, 01/01/28 (pre-refunded)	A2/NR/NR	4,205,215
3,250,000	5.375%, 01/01/35 AMBAC Insured	A2/NR/NR	3,469,765
	Medford, Oregon Hospital Facilities Authority Revenue Refunding, Asante Health Systems
9,000,000	5.500%, 08/15/28 AGMC Insured	NR/AA/NR	10,440,180
	Oregon Health Sciences University
11,550,000	zero coupon, 07/01/21 NPFG Insured	A1/AA-/AA-	9,936,696
2,000,000	5.000%, 07/01/23 Series A	A1/AA-/AA-	2,387,440
4,500,000	5.750%, 07/01/39 Series A	A1/AA-/AA-	5,122,530
	Oregon State Facilities Authority Revenue Refunding, Legacy Health Systems
2,000,000	4.250%, 03/15/17	A1/AA-/NR	2,080,920
3,000,000	4.500%, 03/15/18	A1/AA-/NR	3,221,580
1,000,000	4.750%, 03/15/24	A1/AA-/NR	1,116,420
1,000,000	5.000%, 03/15/30	A1/AA-/NR	1,113,620
	Oregon State Facilities Authority Revenue Refunding, Samaritan Health Services
1,500,000	4.375%, 10/01/20	NR/BBB+/NR	1,644,510
2,000,000	4.500%, 10/01/21	NR/BBB+/NR	2,189,720
1,520,000	5.000%, 10/01/23	NR/BBB+/NR	1,678,658
1,795,000	4.875%, 10/01/25	NR/BBB+/NR	1,949,101
2,000,000	5.000%, 10/01/30	NR/BBB+/NR	2,136,980
	Salem, Oregon Hospital Facility Authority (Salem Hospital)
2,000,000	5.750%, 08/15/23	NR/A/A	2,230,780
1,075,000	5.000%, 08/15/27 Series A	NR/A/A	1,102,735
	Total Hospital		56,026,850
	Housing (0.5%)
	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	1,362,439
	Portland, Oregon Urban Renewal and Redevelopment, Interstate Corridor
1,390,000	5.000%, 06/15/27 Series B	A1/NR/NR	1,607,076
	State of Oregon Housing and Community Services
420,000	5.350%, 07/01/30	Aa2/NR/NR	434,616
	Total Housing		3,404,131
	Lottery (4.9%)
	Oregon State Department of Administration Services (Lottery Revenue)
1,015,000	5.250%, 04/01/26 Series A (unrefunded portion)	Aa2/AAA/NR	1,198,106
1,715,000	5.000%, 04/01/24 Series B	Aa2/AAA/NR	2,052,975
1,500,000	5.000%, 04/01/25 Series B	Aa2/AAA/NR	1,786,785
1,000,000	5.000%, 04/01/25 Series B	Aa2/AAA/NR	1,231,000
3,000,000	5.000%, 04/01/26 Series C	Aa2/AAA/NR	3,715,500
5,000,000	5.000%, 04/01/26 Series D	Aa2/AAA/NR	6,192,500
3,000,000	5.000%, 04/01/27 AGMC Insured (pre-refunded)	Aa2/AAA/A+	3,161,130
6,285,000	5.250%, 04/01/26 (pre-refunded)	NR/NR/NR*	7,491,909
2,500,000	5.000%, 04/01/29 (pre-refunded)	Aa2/AAA/NR	2,807,400
	Total Lottery		29,637,305
	Transportation (7.4%)
	Jackson County, Oregon Airport Revenue
750,000	5.250%, 12/01/32 Syncora Guarantee, Inc. Insured	Baa1/NR/NR	793,245

	Oregon State Department Transportation Highway Usertax, Senior Lien
1,865,000	5.000%, 11/15/23 Series A (pre-refunded)	Aa1/AAA/NR	2,102,825
3,605,000	5.000%, 11/15/24 Series A	Aa1/AAA/AA+	4,379,787
2,425,000	5.000%, 11/15/25 Series A	Aa1/AAA/AA+	2,928,721
2,000,000	4.625%, 11/15/25 Series A (pre-refunded)	Aa1/AAA/NR	2,230,380
1,040,000	5.000%, 11/15/26 Series A	Aa1/AAA/AA+	1,287,343
1,000,000	5.000%, 11/15/26 Series A	Aa1/AAA/AA+	1,221,200
3,540,000	4.625%, 11/15/26 Series A  (pre-refunded)	Aa1/AAA/NR	3,662,095
8,000,000	5.000%, 11/15/28 Series A	Aa1/AAA/AA+	9,793,760
2,155,000	5.000%, 11/15/28 Series A (pre-refunded)	Aa1/AAA/NR	2,236,222
	Port Portland, Oregon Airport Revenue Refunding, Portland International Airport Series Twenty Three
1,000,000	5.000%, 07/01/28	NR/AA-/NR	1,215,620
	Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt
1,685,000	5.000%, 10/01/24 Series A	A3/A/NR	1,948,703
3,480,000	5.000%, 10/01/26 Series A	A3/A/NR	4,010,387
3,000,000	5.000%, 10/01/27 Series A	A3/A/NR	3,445,020
	Tri-County Metropolitan Transportation District, Oregon Senior Lien Payroll Tax
1,000,000	5.000%, 09/01/25 Series A	Aaa/AAA/NR	1,266,150
2,010,000	5.000%, 09/01/29 Series B	Aaa/AAA/NR	2,469,506
	Total Transportation		44,990,964
	Water and Sewer (10.8%)
	Ashland, Oregon Refunding
1,025,000	4.000%, 05/01/17 AGMC Insured	NR/AA/NR	1,069,895
	Grants Pass, Oregon
1,000,000	4.000%, 12/01/23	NR/AA-/NR	1,123,530
	Klamath Falls, Oregon Water
455,000	5.500%, 07/01/16 AGMC Insured	A2/AA/NR	465,988
	Lane County, Oregon Metropolitan Wastewater
2,500,000	5.250%, 11/01/28	Aa2/AA/NR	2,771,725
	Madras, Oregon
725,000	4.500%, 02/15/27	Baa1/NR/NR	774,489
	Portland, Oregon Sewer System, Second Lien
3,005,000	5.000%, 03/01/28 Series A	Aa3/AA-/NR	3,412,568
2,000,000	5.000%, 10/01/25 Series B	Aa3/AA-/NR	2,444,580
	Portland Oregon Sewer System Revenue Refunding Second Lien
5,000,000	5.000%, 06/15/33 Series B	Aa3/AA-/NR	5,392,950
	Portland, Oregon Sewer System
4,410,000	5.000%, 06/15/25 NPFG Insured (pre-refunded)	Aa3/AA-/NR	4,499,611
4,630,000	5.000%, 06/15/26 NPFG Insured (pre-refunded)	Aa3/AA-/NR	4,724,082
1,610,000	5.000%, 06/15/27 NPFG Insured (pre-refunded)	Aa3/AA-/NR	1,642,715
	Portland, Oregon Water System (First Lien)
3,230,000	5.000%, 05/01/27 Series A	Aaa/NR/NR	3,952,551
2,000,000	5.000%, 06/01/28 Series A	Aa2/AA/NR	2,463,720
	Portland, Oregon Sewer System (Second Lien)
2,000,000	5.000%, 06/01/26 Series B	Aa3/AA-/NR	2,477,120
2,000,000	5.000%, 06/01/27 Series B	Aa3/AA-/NR	2,456,120
	Portland, Oregon Water System Revenue Refunding  (Sr. Lien)
1,275,000	4.000%, 05/01/25 Series A	Aaa/NR/NR	1,373,953
	Portland, Oregon Water System Revenue Refunding (Jr. Lien)
2,000,000	5.000%, 10/01/23	Aa1/NR/NR	2,442,960

	Prineville, Oregon Refunding
1,255,000	4.400%, 06/01/29 AGMC Insured	NR/AA/NR			1,366,168
	Seaside, Oregon Wastewater System
1,000,000	4.250%, 07/01/26	A3/NR/NR			1,076,950
	Tigard, Oregon Water System Revenue Refunding
2,025,000	4.000%, 08/01/21	A1/AA-/NR			2,288,736
2,565,000	5.000%, 08/01/24	A1/AA-/NR			3,050,375
	Washington County, Oregon Clean Water Services
4,000,000	5.000%, 10/01/28	Aa2/AA+/NR			4,522,320
	Washington County, Oregon Clean Water Services Sewer Revenue Senior Lien
1,010,000	4.000%, 10/01/22 Series B	Aa2/AA+/NR			1,140,553
1,500,000	4.000%, 10/01/23 Series B	Aa2/AA+/NR			1,685,145
2,850,000	4.000%, 10/01/26 Series B	Aa2/AA+/NR			3,139,503
2,745,000	4.000%, 10/01/28 Series B	Aa2/AA+/NR			2,974,372
	Woodburn, Oregon Wastewater Revenue Refunding
1,090,000	5.000%, 03/01/21 Series A	A2/NR/NR			1,263,212
	Total Water and Sewer				65,995,891
	Total Revenue Bonds				256,586,437
	Total Investments (cost $554,710,756-note b)	96.8%			589,635,823
	Other assets less liabilities	3.2			19,558,373
	Net Assets	100.0%		$	609,194,196
		Percent of
	Portfolio Distribution By Quality Rating	Investments †
	Aaa of Moody's or AAA of S&P	9.5	%
	Pre-refunded bonds ††	19.3
	Aa of Moody's or AA of S&P or Fitch	58.7
	A of Moody's or S&P or Fitch	8.1
	Baa of Moody's or BBB of S&P	3.0
	Not Rated*	1.4
		100.0	%
	PORTFOLIO ABBREVIATION:
	AGC - Assured Guaranty Corp.
	AGMC - Assured Guaranty Municipal Corp.
	AMBAC - American Municipal Bond Assurance Corp.
	COP- Certificates of Participation
	FGIC - Financial Guaranty Insurance Co.
	MAC - Municipal Assurance Corp.
	NPFG - National Public Finance Guarantee
	NR - Not Rated
	* Any security not rated ("NR") by any of the Nationally Recognized Statistical Rating Organizations ("NRSRO") 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.
	† 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.

 See accompanying notes to financial statements.

AQUILA TAX-FREE TRUST OF OREGON

 NOTES TO FINANCIAL STATEMENTS

December 31, 2015

(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, 2015, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $554,422,478 amounted to $35,213,345, which consisted of aggregate gross unrealized appreciation of $35,293,674 and aggregate gross unrealized depreciation of $80,329.

(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, 2015:

Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	-
Level 2 – Other Significant Observable Inputs-Municipal Bonds+		589,635,823
Level 3 – Significant Unobservable Inputs		-
Total	$	589,635,823
+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.

THE CASCADES TRUST
By:	/s/ Diana P. Herrmann
	Diana P. Herrmann
	Vice Chair, President and Trustee
	February 26, 2016

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  26, 2016
By:	/s/ Joseph P. DiMaggio
	Joseph P. DiMaggio
	Chief Financial Officer and Treasurer
	February  26, 2016

 

EX-99.CERT

CERTIFICATIONS

I, Diana P. Herrmann, certify that:

1. I have reviewed this report on Form N-Q of The Cascades Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 26,  2015

/s/ Diana P. Herrmann

Diana P. Herrmann

Vice Chair, President and Trustee

I, Joseph P. DiMaggio, certify that:

1. I have reviewed this report on Form N-Q of The Cascades Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 26, 2015

/s/ Joseph P. DiMaggio

Joseph P. DiMaggio

Chief Financial Officer and Treasurer