N-Q 1 e617636_nq-tfto.htm THE CASCADES TRUST 12/31/2017 FORM 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, 2017

 

Date of reporting period: December 31, 2017

 

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, 2017    
  (unaudited)    

 

Amount  General Obligation Bonds (48.3%) 

Ratings

Moody's, S&P

and Fitch

  Value  (a)
             
     City & County (6.4%)              
                     
     Bend, Oregon               
$2,435,000   4.000%, 06/01/24   Aa2/NR/NR   $2,655,757      
                     
     Canby, Oregon               
 1,060,000   5.000%, 06/01/27   A1/NR/NR    1,158,103      
 1,405,000   4.000%, 12/01/24 AGMC Insured   A1/NR/NR    1,500,976      
                     
     Clackamas County, Oregon Refunding               
 1,135,000   4.000%, 06/01/24   Aa1/NR/NR    1,246,491      
                     
     Gresham, Oregon Full Faith and Credit Refunding and Project Obligations               
 1,545,000   5.000%, 05/01/23   Aa2/NR/NR    1,790,794      
                     
     Lake Oswego, Oregon Refunding               
 3,140,000   4.000%, 12/01/30   Aaa/AAA/NR    3,607,640      
                     
     Lebanon, Oregon Refunding               
 1,050,000   5.000%, 06/01/24   A1/NR/NR    1,204,382      
 1,165,000   5.000%, 06/01/25   A1/NR/NR    1,387,806      
                     
     McMinnville, Oregon Refunding               
 2,075,000   5.000%, 02/01/27   Aa3/NR/NR    2,459,809      
                     
     Multnomah County, Oregon               
 3,000,000   5.000%, 06/01/30   Aaa/AAA/NR    3,713,370      
                     
     Portland, Oregon Limited Tax, Sellwood Bridge & Archive Space Projects               
 1,640,000   4.000%, 04/01/29 2017 Series A   Aaa/NR/NR    1,884,196      
 1,710,000   4.000%, 04/01/30 2017 Series A   Aaa/NR/NR    1,946,219      
 1,775,000   4.000%, 04/01/31 2017 Series A   Aaa/NR/NR    2,007,578      
                     
     Portland, Oregon Public Safety               
 1,345,000   5.000%, 06/15/25 Series A   Aaa/NR/NR    1,643,805      
 2,130,000   4.125%, 06/01/26 Series A   Aaa/NR/NR    2,202,910      
                     
     Redmond, Oregon Refunding               
 735,000   5.000%, 06/01/23 Series A   Aa3/NR/NR    826,316      
                     
     Springfield, Oregon               
 1,765,000   4.000%, 06/01/24   Aa3/NR/NR    1,997,962      
 1,830,000   4.000%, 06/01/25   Aa3/NR/NR    2,093,117      
                     
     Washington County, Oregon               
 5,055,000   4.000%, 06/01/29 Series B   Aaa/NR/NR    5,762,649      
                     
     Total City & County        41,089,880      
                     
     Community College (4.1%)               
                     
     Blue Mountain Community College District Umatilla, Oregon Morrow and Baker Counties Oregon (Umatilla and Morrow Counties Service Area)               
 970,000   4.000%, 06/15/27 Series 2015   NR/AA+/NR    1,096,478      
                     
     Central Oregon Community College District               
 1,850,000   4.750%, 06/15/22   NR/AA+/NR    1,987,141      
 2,195,000   4.750%, 06/15/23   NR/AA+/NR    2,356,618      
 2,175,000   4.750%, 06/15/26   NR/AA+/NR    2,332,970      
                     
     Chemeketa, Oregon Community College District               
 2,000,000   5.000%, 06/15/25   NR/AA+/NR    2,368,000      

 

 

     Clackamas, Oregon Community College District               
 1,405,000   5.000%, 06/15/27 Series A   Aa1/AA+/NR    1,687,841      
                     
     Columbia Gorge, Oregon Community College District, Refunding               
 1,000,000   4.000%, 06/15/24   Aa1/NR/NR    1,099,070      
                     
     Lane, Oregon Community College               
 1,840,000   5.000%, 06/15/24   NR/AA+/NR    2,095,778      
 1,750,000   4.000%, 06/15/24   Aa1/NR/NR    1,972,075      
                     
     Linn Benton, Oregon Community College               
 1,520,000   5.000%, 06/01/27   NR/AA+/NR    1,824,502      
                     
     Mount Hood, Oregon Community College District Refunding               
 1,865,000   5.000%, 06/01/27   Aa2/NR/NR    2,271,943      
 1,000,000   5.000%, 06/01/29   Aa2/NR/NR    1,204,550      
                     
     Oregon Coast Community College District State               
 1,770,000   5.000%, 06/15/25   Aa1/NR/NR    2,016,048      
                     
     Rogue, Oregon Community College District               
 1,375,000   4.000%, 06/15/29 Series B   Aa1/NR/NR    1,545,706      
                     
     Total Community College        25,858,720      
                     
                     
     Higher Education (0.9%)               
                     
     Oregon State Higher Education               
 1,000,000   5.000%, 08/01/25 Series C   Aa1/AA+/AA+    1,188,100      
 1,795,000   5.000%, 08/01/27 Series C   Aa1/AA+/AA+    2,124,113      
                     
     Oregon State, Oregon University System               
 1,170,000   4.000%, 08/01/25 Series B   Aa1/AA+/AA+    1,283,689      
 1,090,000   5.000%, 08/01/25 Series N   Aa1/AA+/AA+    1,271,779      
                     
     Total Higher Education        5,867,681      
                     
     Hospital (0.8%)               
                     
     Pacific Communities Health District, Oregon               
 1,220,000   5.000%, 06/01/29   A1/NR/NR    1,464,390      
 1,060,000   5.000%, 06/01/30   A1/NR/NR    1,261,644      
 1,000,000   5.000%, 06/01/31   A1/NR/NR    1,183,570      
 1,200,000   5.000%, 06/01/32   A1/NR/NR    1,415,304      
                     
     Total Hospital        5,324,908      
                     
     School District (24.1%)               
                     
     Clackamas County, Oregon School District #12 (North Clackamas)               
 2,450,000   5.000%, 06/15/25   Aa1/AA+/NR    2,915,525      
 1,165,000   5.000%, 06/15/25   Aa1/AA+/NR    1,414,764      
 1,500,000   5.000%, 06/15/26   Aa1/AA+/NR    1,781,010      
 3,725,000   5.000%, 06/15/31   Aa1/AA+/NR    4,553,589      
 2,160,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    2,669,328      
                     
     Clackamas County, Oregon School District #62 (Oregon City)               
 1,000,000   5.000%, 06/01/29 MAC Insured   Aa3/AA/NR    1,158,780      
                     
     Clackamas County, Oregon School District #86 (Canby)               
 1,800,000   5.000%, 06/15/24   Aa1/AA+/NR    2,053,530      
 1,110,000   5.000%, 06/15/25 Series A   Aa1/AA+/NR    1,264,301      
                     
     Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)               
 3,500,000   5.000%, 06/15/26   Aa1/AA+/NR    4,239,550      
 5,500,000   5.000%, 06/15/27   Aa1/AA+/NR    6,649,445      
 1,115,000   5.000%, 06/15/28   Aa1/AA+/NR    1,342,025      
                     
     Clatsop County, Oregon School District #10 (Seaside)               
 1,000,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    1,241,580      
                     
     Deschutes County, Oregon Administrative School District #1 (Bend - La Pine)               
 3,000,000   4.000%, 06/15/30   Aa1/AA+/NR    3,379,320      

 

 

     Deschutes County, Oregon School District #6 (Sisters)               
 1,735,000   5.250%, 06/15/19 AGMC Insured   A2/AA+/NR    1,826,157      
 1,030,000   5.250%, 06/15/21 AGMC Insured   A2/AA+/NR    1,149,439      
                     
     Deschutes and Jefferson Counties, Oregon School District #02J (Redmond)               
 80,000   5.000%, 06/15/21 NPFG/ FGIC Insured   Aa1/NR/NR    80,211      
 1,025,000   zero coupon, 06/15/23   Aa1/NR/NR    916,176      
                     
     Greater Albany School District #8J (Linn & Benton Counties)               
 1,000,000   5.000%, 06/15/30   Aa1/AA+/NR    1,229,090      
                     
     Hood River County, Oregon School District               
 2,825,000   4.000%, 06/15/29   NR/AA+/NR    3,191,883      
 2,260,000   4.000%, 06/15/30   NR/AA+/NR    2,527,720      
 2,400,000   4.000%, 06/15/31   NR/AA+/NR    2,661,096      
                     
     Jefferson County, Oregon School District #509J               
 1,400,000   5.000%, 06/15/25   Aa1/NR/NR    1,627,612      
                     
     Klamath County, Oregon School District               
 1,250,000   5.000%, 06/15/24   NR/AA+/NR    1,458,163      
                     
     Lane County, Oregon School District #4J (Eugene) Refunding               
 1,130,000   4.000%, 06/15/23   Aa1/NR/NR    1,212,004      
 2,850,000   4.000%, 06/15/24   Aa1/NR/NR    3,120,807      
 2,765,000   3.000%, 06/15/24   Aa1/NR/NR    2,948,790      
 4,575,000   5.000%, 06/15/26   Aa1/NR/NR    5,401,611      
                     
     Lane County, Oregon School District #19 (Springfield)               
 1,000,000   5.000%, 06/15/25   Aa1/AA+/NR    1,199,790      
 1,735,000   5.000%, 06/15/27   Aa1/AA+/NR    2,094,926      
                     
     Lane County, Oregon School District #69 (Junction City)               
 630,000   5.000%, 06/15/25   Aa1/NR/NR    762,634      
                     
     Lane & Douglas Counties, Oregon School District #45J3               
 2,665,000   4.000%, 06/15/27 Series B   Aa1/NR/NR    3,048,494      
                     
     Lincoln County, Oregon School District               
 2,370,000   4.000%, 06/15/24 Series A   Aa1/NR/NR    2,556,851      
                     
     Marion County, Oregon School District #103 (Woodburn)               
 2,140,000   5.000%, 06/15/27   Aa1/NR/NR    2,587,239      
 2,260,000   5.000%, 06/15/28   Aa1/NR/NR    2,720,159      
                     
     Marion & Clackamas Counties, Oregon School District #4J (Silver Falls)               
 1,260,000   5.000%, 06/15/24   Aa1/NR/NR    1,469,122      
                     
     Morrow County, Oregon School District #1               
 1,710,000   5.250%, 06/15/19 AGMC Insured   A2/AA+/NR    1,799,843      
                     
     Multnomah County, Oregon School District #1J (Portland)               
 2,970,000   5.000%, 06/15/26 Series B   Aa1/AA+/NR    3,590,700      
                     
     Multnomah County, Oregon School District #7 (Reynolds)               
 5,680,000   5.000%, 06/15/26 Series A   Aa1/NR/NR    6,888,931      
 1,500,000   5.000%, 06/15/27 Series A   Aa1/NR/NR    1,815,795      
 1,825,000   5.000%, 06/15/28 Series A   Aa1/NR/NR    2,197,994      
                     
     Multnomah County, Oregon School District #7 (Reynolds) Refunding               
 1,165,000   5.000%, 06/01/29   Aa3/NR/NR    1,250,558      
                     
     Multnomah County, Oregon School District #40 (David Douglas)               
 1,500,000   5.000%, 06/15/23 Series A   NR/AA+/NR    1,702,995      
                     
     Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow)               
 4,275,000   5.250%, 06/15/19 AGMC Insured   Aa1/AA+/NR    4,497,086      
 2,500,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    3,101,525      
                     
     Multnomah and Clackamas Counties, Oregon School District #28JT (Centennial)               
 2,680,000   5.250%, 12/15/18 AGMC Insured   Aa1/NR/NR    2,771,308      
                     
     Polk, Marion & Benton Counties, Oregon School District #13J (Central)               
 1,515,000   4.000%, 02/01/28   NR/AA+/NR    1,685,453      
                     
     Union County, Oregon School District #1 (La Grande)               
 1,000,000   5.000%, 06/15/27   Aa1/NR/NR    1,201,310      

 

 

     Wasco County, Oregon School District #12 (The Dalles)               
 1,790,000   5.500%, 06/15/20 AGMC Insured   A2/AA/NR    1,954,340      
                     
     Washington County, Oregon School District #48J (Beaverton)               
 2,750,000   4.000%, 06/15/25   Aa1/AA+/NR    2,984,273      
 2,275,000   4.000%, 06/15/23 Series B   Aa1/AA+/NR    2,490,147      
 5,290,000   4.000%, 06/15/24 Series B   Aa1/AA+/NR    5,783,134      
 3,000,000   5.000%, 06/15/25 Series 2014B   Aa1/AA+/NR    3,554,010      
 3,000,000   5.000%, 06/15/28 Series 2014B   Aa1/AA+/NR    3,520,230      
 1,845,000   5.000%, 06/15/29 Series 2014B   Aa1/AA+/NR    2,158,890      
 1,500,000   5.000%, 06/15/27 Series C   Aa1/AA+/NR    1,872,540      
 1,015,000   4.000%, 06/01/29 Series 2016   Aa2/NR/NR    1,136,364      
                     
     Washington Clackamas & Yamhill Counties, Oregon School District #88J               
 2,000,000   5.000%, 06/15/25   Aa1/AA+/NR    2,421,060      
 2,785,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    3,441,703      
                     
     Washington Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)               
 1,535,000   4.000%, 06/15/25   Aa1/NR/NR    1,668,499      
 2,105,000   5.000%, 06/15/30   Aa1/NR/NR    2,587,234      
                     
     Yamhill County, Oregon School District #40 (McMinnville)               
 2,255,000   4.000%, 06/15/26   Aa1/NR/NR    2,502,757      
 1,000,000   4.000%, 06/15/29   Aa1/AA+/NR    1,132,330      
 1,000,000   4.000%, 06/15/30   Aa1/AA+/NR    1,122,520      
                     
     Total School Districts        153,286,250      
                     
     Special District (4.0%)               
                     
     Bend, Oregon Metropolitan Park & Recreational District               
 1,430,000   4.000%, 06/01/27   Aa3/NR/NR    1,553,767      
                     
     Clackamas County, Oregon Fire District No. 1               
 1,020,000   4.000%, 06/01/30   NR/AA/NR    1,157,649      
 2,705,000   4.000%, 06/01/31   NR/AA/NR    3,040,934      
                     
     Metro, Oregon               
 4,000,000   4.000%, 06/01/26 Series A   Aaa/AAA/NR    4,344,920      
                     
     Tualatin Hills, Oregon Park & Recreational District               
 3,480,000   5.000%, 06/01/23   Aa1/NR/NR    4,067,320      
 4,725,000   5.000%, 06/01/24   Aa1/NR/NR    5,642,879      
 2,775,000   5.000%, 06/01/26   Aa1/NR/NR    3,341,489      
                     
     Tualatin Valley, Oregon Fire & Rescue Rural Fire Protection District               
 1,235,000   4.000%, 06/01/26   Aaa/NR/NR    1,313,929      
 1,170,000   4.000%, 06/01/27   Aaa/NR/NR    1,241,604      
                     
     Total Special District        25,704,491      
                     
     State (6.4%)               
                     
     State of Oregon               
 750,000   5.000%, 05/01/25 Series A   Aa1/AA+/AA+    886,020      
 3,000,000   5.000%, 05/01/23 Series L   Aa1/AA+/AA+    3,326,130      
 1,125,000   5.000%, 05/01/24 Series L   Aa1/AA+/AA+    1,247,681      
 1,470,000   4.000%, 11/01/26 Series M   Aa1/AA+/AA+    1,574,973      
 2,125,000   4.000%, 05/01/25 Series O   Aa1/AA+/AA+    2,266,079      
                     
     State of Oregon Article XI-G Community College Projects               
 1,160,000   5.000%, 08/01/27 Series J   Aa1/AA+/AA+    1,410,827      
                     
     State of Oregon Article XI-G Higher Education               
 500,000   5.000%, 08/01/25 Series O   Aa1/AA+/AA+    609,690      
 1,000,000   5.000%, 08/01/26 Series O   Aa1/AA+/AA+    1,221,750      
 1,000,000   5.000%, 08/01/27 Series O   Aa1/AA+/AA+    1,216,230      
                     
     State of Oregon Article XI-M Seismic Projects               
 1,000,000   5.000%, 06/01/30   Aa1/AA+/AA+    1,218,200      

 

 

     State of Oregon Article XI-Q State Projects               
 2,140,000   5.000%, 11/01/28   Aa1/AA+/AA+    2,622,827      
 1,000,000   5.000%, 11/01/30   Aa1/AA+/AA+    1,213,670      
 2,000,000   5.000%, 11/01/31   Aa1/AA+/AA+    2,420,560      
 1,195,000   5.000%, 05/01/28 Series D   Aa1/AA+/AA+    1,467,699      
 1,255,000   5.000%, 05/01/29 Series D   Aa1/AA+/AA+    1,534,928      
 1,000,000   5.000%, 05/01/30 Series D   Aa1/AA+/AA+    1,216,220      
 2,300,000   5.000%, 05/01/28 Series F   Aa1/AA+/AA+    2,771,546      
                     
     State of Oregon Department of Administrative Services COP               
 1,815,000   5.000%, 11/01/27 Series C   Aa2/AA/AA    1,919,598      
 1,195,000   5.000%, 11/01/28 Series C   Aa2/AA/AA    1,263,868      
                     
     State of Oregon Department of Administrative Services, Oregon Opportunity Refunding               
 6,210,000   5.000%, 12/01/19   Aa1/AA+/AA+    6,606,943      
                     
     State of Oregon Higher Education               
 1,000,000   5.000%, 08/01/28 Series A   Aa1/AA+/AA+    1,209,960      
 1,250,000   5.000%, 08/01/30 Series L   Aa1/AA+/AA+    1,553,200      
                     
     Total State        40,778,599      
                     
     Transportation (1.2%)               
                     
     Oregon State Department Transportation Highway Usertax (Senior Lien)               
 5,000,000   5.000%, 11/15/29 Series B   Aa1/AAA/AA+    6,203,000      
                     
     State of Oregon ODOT Projects               
 1,020,000   5.000%, 11/15/30 Series M   Aa1/AA+/AA+    1,261,505      
                     
     Total Transportation        7,464,505      
                     
     Water & Sewer (0.4%)               
                     
     Gearheart, Oregon               
 1,060,000   4.500%, 03/01/26 AGMC Insured   A2/NR/NR    1,128,349      
                     
     Rockwood, Oregon Water Peoples Utility District Water Revenue Refunding               
 1,270,000   4.250%, 08/15/26   A1/NR/NR    1,358,633      
                     
     Total Water & Sewer        2,486,982      
                     
     Total General Obligation Bonds        307,862,016      
                     
     Revenue Bonds (29.8%)               
                     
     City & County (2.3%)               
                     
     Newport, Oregon Urban Renewal Obligations, Refunding               
 565,000   4.500%, 06/15/22 Series B   NR/AA-/NR    602,663      
                     
     Portland, Oregon Revenue Refunding Limited Tax, Oregon Convention Center               
 2,825,000   5.000%, 06/01/24   Aaa/NR/NR    3,130,665      
 4,265,000   5.000%, 06/01/27   Aaa/NR/NR    4,721,995      
                     
     Portland, Oregon Revenue Refunding Limited Tax               
 1,000,000   4.000%, 04/01/22 Series A   Aaa/NR/NR    1,030,440      
                     
     Portland, Oregon River District Urban Renewal and Redevelopment               
 1,600,000   5.000%, 06/15/22 Series B   A1/NR/NR    1,813,600      
 1,830,000   5.000%, 06/15/23 Series B   A1/NR/NR    2,075,147      
                     
     Portland, Oregon Urban Renewal and Redevelopment, Refunding, North Macadam               
 1,000,000   4.000%, 06/15/25 Series B   A1/NR/NR    1,057,430      
                     
     Total City & County        14,431,940      
                     
     Electric (1.6%)               
                     
     Eugene, Oregon  Electric Utility Refunding System               
 2,875,000   5.000%, 08/01/29 Series A   Aa2/AA-/AA-    3,493,585      
 4,030,000   5.000%, 08/01/30 Series A   Aa2/AA-/AA-    4,872,592      
                     
     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    1,769,970      

 

 

     Total Electric        10,136,147      
                     
     Higher Education (1.6%)               
                     
     Oregon State Facilities Authority (Lewis & Clark College Project)               
 1,000,000   5.250%, 10/01/24 Series A   A3/A-/NR    1,109,400      
 3,000,000   5.000%, 10/01/27 Series A   A3/A-/NR    3,295,710      
                     
     Oregon State Facilities Authority (Linfield College Project)               
 1,180,000   5.000%, 10/01/22 Series A   Baa1/NR/NR    1,328,043      
 1,000,000   5.000%, 10/01/23 Series A   Baa1/NR/NR    1,145,640      
 1,220,000   5.000%, 10/01/31 Series A 2010   Baa1/NR/NR    1,296,689      
                     
     Oregon State Facilities Authority (Reed College Project)               
 500,000   5.000%, 07/01/30 Series A   Aa2/AA-/NR    610,265      
 300,000   4.000%, 07/01/31 Series A   Aa2/AA-/NR    334,866      
                     
     Oregon State Facilities Authority (Willamette University)               
 1,000,000   4.000%, 10/01/24   NR/A/NR    1,038,510      
                     
     Total Higher Education        10,159,123      
                     
     Hospital (5.2%)               
                     
     Medford, Oregon Hospital Facilities Authority Revenue Refunding, Asante Health Systems               
 9,000,000   5.500%, 08/15/28 AGMC Insured   NR/AA/NR    9,798,930      
                     
     Oregon Health Sciences University               
 9,025,000   zero coupon, 07/01/21 NPFG Insured   Aa3/AA-/AA-    8,001,294      
 2,000,000   5.000%, 07/01/23 Series A   Aa3/AA-/AA-    2,262,200      
 1,250,000   5.000%, 07/01/28 Series B   Aa3/AA-/AA-    1,523,075      
 1,000,000   5.000%, 07/01/33 Series B   Aa3/AA-/AA-    1,191,100      
                     
     Oregon State Facilities Authority Revenue Refunding, Legacy Health Systems               
 3,000,000   4.500%, 03/15/18   A1/AA-/NR    3,017,520      
 1,000,000   4.750%, 03/15/24   A1/AA-/NR    1,060,600      
 1,000,000   5.000%, 03/15/30   A1/AA-/NR    1,061,230      
                     
     Oregon State Facilities Authority Revenue Refunding, Samaritan Health Services               
 1,500,000   4.375%, 10/01/20   NR/BBB+/NR    1,591,740      
 2,000,000   4.500%, 10/01/21   NR/BBB+/NR    2,131,720      
 1,520,000   5.000%, 10/01/23   NR/BBB+/NR    1,650,492      
                     
     Total Hospital        33,289,901      
                     
     Housing (0.6%)               
                     
     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    1,391,901      
                     
     Portland, Oregon Urban Renewal and Redevelopment, Interstate Corridor               
 1,390,000   5.000%, 06/15/27 Series B   A1/NR/NR    1,546,028      
                     
     State of Oregon Housing and Community Services               
 985,000   1.800%, 01/01/23   Aa2/NR/NR    973,131      
                     
     Total Housing        3,911,060      
                     
     Lottery (4.6%)               
                     
     Oregon State Department of Administration Services (Lottery Revenue)               
 1,015,000   5.250%, 04/01/26 Series A   Aa2/AAA/NR    1,127,564      
 1,715,000   5.000%, 04/01/24 Series B   Aa2/AAA/NR    1,938,996      
 1,500,000   5.000%, 04/01/25 Series B   Aa2/AAA/NR    1,693,290      
 1,000,000   5.000%, 04/01/25 Series B   Aa2/AAA/NR    1,184,930      
 2,000,000   5.000%, 04/01/24 Series C   Aa2/AAA/NR    2,377,640      
 3,000,000   5.000%, 04/01/26 Series C   Aa2/AAA/NR    3,635,610      
 4,000,000   5.000%, 04/01/30 Series C   Aa2/AAA/NR    4,947,200      
 5,000,000   5.000%, 04/01/26 Series D   Aa2/AAA/NR    6,059,350      
 4,000,000   5.000%, 04/01/28 Series D   Aa2/AAA/NR    4,820,400      
 1,000,000   5.000%, 04/01/29 Series D   Aa2/AAA/NR    1,200,610      
                     
     Total Lottery        28,985,590      

 

 

     Sales Tax (0.2%)               
                     
     Metro, Oregon Dedicated Tax Revenue (Oregon Convention Center Hotel)               
 750,000   5.000%, 06/15/31   Aa3/NR/NR    906,233      
                     
     Transportation (6.1%)               
                     
     Oregon State Department Transportation Highway Usertax, Senior Lien               
 3,605,000   5.000%, 11/15/24 Series A   Aa1/AAA/AA+    4,145,606      
 2,425,000   5.000%, 11/15/25 Series A   Aa1/AAA/AA+    2,786,204      
 1,040,000   5.000%, 11/15/26 Series A   Aa1/AAA/AA+    1,245,130      
 8,000,000   5.000%, 11/15/28 Series A   Aa1/AAA/AA+    9,560,880      
                     
     Port Portland, Oregon Airport Revenue Refunding, Portland International Airport Series Twenty Three               
 2,525,000   5.000%, 07/01/26   NR/AA-/NR    3,041,969      
 1,000,000   5.000%, 07/01/28   NR/AA-/NR    1,192,480      
 2,390,000   5.000%, 07/01/29   NR/AA-/NR    2,837,336      
                     
     Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt               
 1,100,000   5.000%, 10/01/27 Series A   A3/A/NR    1,355,750      
                     
     Tri-County Metropolitan Transportation District, Oregon Senior Lien Payroll Tax               
 1,000,000   5.000%, 09/01/25 Series A   Aaa/AAA/NR    1,226,420      
 1,890,000   5.000%, 09/01/28 Series A   Aaa/AAA/NR    2,330,351      
 1,650,000   5.000%, 09/01/29 Series A   Aaa/AAA/NR    2,021,217      
 3,975,000   5.000%, 09/01/30 Series A   Aaa/AAA/NR    4,848,228      
 2,010,000   5.000%, 09/01/29 Series B   Aaa/AAA/NR    2,434,693      
                     
     Total Transportation        39,026,264      
                     
     Water and Sewer (7.6%)               
                     
     Clackamas County, Oregon  Service District No. 1               
 2,240,000   5.000%, 12/01/26   NR/AA+/NR    2,790,099      
                     
     Clean Water Services, Oregon Refunding (Senior Lien)               
 1,510,000   5.000%, 10/01/27   Aa1/AAA/NR    1,900,078      
                     
     Eugene, Oregon Water Utility System               
 115,000   5.000%, 08/01/28   Aa2/AA/AA+    140,345      
 450,000   5.000%, 08/01/29   Aa2/AA/AA+    546,822      
                     
     Grants Pass, Oregon               
 1,000,000   4.000%, 12/01/23   NR/AA-/NR    1,092,120      
                     
     Madras, Oregon               
 725,000   4.500%, 02/15/27   A3/NR/NR    784,073      
                     
     Portland, Oregon Water System (First Lien)               
 3,230,000   5.000%, 05/01/27 Series A   Aaa/NR/NR    3,832,718      
 3,500,000   5.000%, 06/01/28 Series A   Aa2/AA/NR    4,182,570      
                     
     Portland, Oregon Sewer System (Second Lien)               
 3,005,000   5.000%, 03/01/28 Series A   Aa3/AA-/NR    3,209,190      
 2,000,000   5.000%, 10/01/25 Series B   Aa3/AA-/NR    2,379,520      
 2,000,000   5.000%, 06/01/26 Series B   Aa3/AA-/NR    2,414,400      
 2,000,000   5.000%, 06/01/27 Series B   Aa3/AA-/NR    2,402,180      
                     
     Portland, Oregon Water System Revenue Refunding  (Sr. Lien)               
 1,275,000   4.000%, 05/01/25 Series A   Aaa/NR/NR    1,332,095      
                     
     Portland, Oregon Water System Revenue Refunding (Jr. Lien)               
 2,000,000   5.000%, 10/01/23   Aa1/NR/NR    2,326,480      
                     
     Prineville, Oregon Refunding               
 1,255,000   4.400%, 06/01/29 AGMC Insured   NR/AA/NR    1,332,057      
                     
     Salem, Oregon Water & Sewer Revenue Refunding               
 3,500,000   5.000%, 06/01/25   Aa2/NR/NR    4,246,690      
                     
     Seaside, Oregon Wastewater System               
 1,000,000   4.250%, 07/01/26   A3/NR/NR    1,049,650      
                     
     Tigard, Oregon Water System Revenue Refunding               
 2,565,000   5.000%, 08/01/24   Aa3/AA-/NR    2,903,580      

 

 

     Washington County, Oregon Clean Water Services Sewer (Senior Lien)               
 1,010,000   4.000%, 10/01/22 Series B   Aa1/AAA/NR    1,091,234      
 1,500,000   4.000%, 10/01/23 Series B   Aa1/AAA/NR    1,604,310      
 2,850,000   4.000%, 10/01/26 Series B   Aa1/AAA/NR    3,013,334      
 2,745,000   4.000%, 10/01/28 Series B   Aa1/AAA/NR    2,887,191      
                     
     Woodburn, Oregon Wastewater Revenue Refunding               
 1,090,000   5.000%, 03/01/21 Series A   A2/NR/NR    1,193,517      
                     
     Total Water and Sewer        48,654,253      
                     
     Total Revenue Bonds        189,500,511      
                     
     Pre-Refunded Bonds (21.4%)††               
                     
     Pre-Refunded General Obligation Bonds (10.4%)               
                     
     City & County (0.3%)               
                     
     City of Salem, Oregon               
 1,750,000   5.000%, 06/01/29   NR/AA/NR    1,833,930      
                     
     Community College (1.9%)               
                     
     Chemeketa, Oregon Community College District               
 1,010,000   5.500%, 06/15/24   NR/AA+/NR    1,028,453      
 1,235,000   5.000%, 06/15/25   NR/AA+/NR    1,254,809      
 1,540,000   5.000%, 06/15/26   NR/AA+/NR    1,564,702      
                     
     Portland, Oregon Community College District               
 7,915,000   5.000%, 06/15/28   Aa1/AA/NR    8,293,258      
                     
     Total Community College        12,141,222      
                     
     Higher Education (0.8%)               
                     
     Oregon State, Oregon University System Projects               
 2,365,000   4.000%, 08/01/26 Series H   Aa1/AA+/AA+    2,550,582      
                     
     State of Oregon Board of Higher Education               
 1,000,000   5.000%, 08/01/34   Aa1/AA+/NR    1,020,460      
 1,000,000   5.000%, 08/01/38   Aa1/AA+/NR    1,020,460      
 500,000   5.750%, 08/01/29 Series A   Aa1/AA+/NR    512,380      
                     
     Total Higher Education        5,103,882      
                     
     School District (5.7%)               
                     
     Clackamas County, Oregon School District #46 (Oregon Trail)               
 1,000,000   5.000%, 06/15/22   NR/AA+/NR    1,049,270      
 1,865,000   5.000%, 06/15/28 Series A   NR/AA+/NR    1,956,889      
 1,800,000   5.000%, 06/15/29 Series A   NR/AA+/NR    1,888,686      
 2,000,000   5.000%, 06/15/32 Series A   NR/AA+/NR    2,098,540      
 3,780,000   4.750%, 06/15/32 Series A   NR/AA+/NR    3,952,746      
                     
     Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)               
 1,110,000   5.000%, 06/15/26   Aa1/AA+/NR    1,164,690      
 2,850,000   5.000%, 06/15/27   Aa1/AA+/NR    2,990,420      
 2,000,000   4.500%, 06/15/29   Aa1/AA+/NR    2,084,260      
 1,965,000   5.000%, 06/15/30   Aa1/AA+/NR    2,061,816      
 3,000,000   5.000%, 06/15/33   Aa1/AA+/NR    3,147,810      
 500,000   5.000%, 06/15/34   Aa1/AA+/NR    524,635      
                     
     Columbia & Washington Counties, Oregon School District #47J (Vernonia)               
 3,430,000   5.00%, 06/15/27   NR/AA+/NR    3,703,028      
                     
     Deschutes and Jefferson Counties, Oregon School District #02J (Redmond)               
 5,000,000   6.000%, 06/15/31   Aa1/NR/NR    5,102,550      
                     
     Jackson County, Oregon School District #549C (Medford)               
 1,000,000   4.625%, 06/15/27   Aa1/AA+/NR    1,014,360      
 1,000,000   5.000%, 06/15/33   Aa1/AA+/NR    1,016,040      
                     
     Washington County, Oregon School District #48J (Beaverton)               
 1,280,000   5.000%, 06/01/31 AGC Insured   Aa2/AA/NR    1,341,389      
 1,000,000   5.125%, 06/01/36 AGC Insured   Aa2/AA/NR    1,049,690      

 

 

     Total School District        36,146,819      
                     
     Special District (0.2%)               
                     
     Tualatin Hills, Oregon Park & Recreational District               
 1,000,000   4.250%, 06/01/24   Aa1/AA/NR    1,037,530      
                     
     State (1.5%)               
                     
     State of Oregon Alternative Energy Project               
 1,255,000   4.750%, 04/01/29 Series B   Aa1/AA+/AA+    1,304,911      
 500,000   6.000%, 10/01/29 Series B   Aa1/AA+/AA+    516,580      
                     
                     
     State of Oregon  Department of Administrative Services               
 5,000,000   5.125%, 05/01/33   Aa2/AA/AA    5,235,250      
                     
     State of Oregon  Department of Administrative Services COP               
 1,455,000   5.000%, 11/01/27 Series C   NR/NR/NR    1,542,373      
 960,000   5.000%, 11/01/28 Series C   NR/NR/NR    1,017,648      
                     
     Total State        9,616,762      
                     
     Total Pre-Refunded General Obligation Bonds        65,880,145      
                     
     Pre-Refunded Revenue Bonds (11.0%)               
                     
     City & County (0.4%)               
                     
     Local Oregon Capital Assets Program COP Cottage Grove               
 2,375,000   5.000%, 09/15/25 Series 2013A   Baa1/NR/NR    2,646,700      
                     
     Electric (1.3%)               
                     
     Eugene, Oregon  Electric Utility               
 5,635,000   5.000%, 08/01/30   Aa2/AA-/AA-    5,750,292      
                     
     Eugene, Oregon  Electric Utility Refunding System               
 2,000,000   5.000%, 08/01/27 Series A   Aa2/AA-/AA-    2,225,920      
                     
     Total Electric        7,976,212      
                     
     Higher Education (1.5%)               
                     
     Oregon State Facilities Authority Revenue Refunding (Reed College Project)               
 1,500,000   5.000%, 07/01/29 Series A   Aa2/AA-/NR    1,621,545      
                     
     Oregon State Facilities Authority (University of Portland)               
 3,000,000   5.000%, 04/01/32   NR/A-/NR    3,026,250      
                     
     Portland, Oregon Economic Development (Broadway Project)               
 5,000,000   6.500%, 04/01/35   A1/NR/NR    5,186,150      
                     
     Total Higher Education        9,833,945      
                     
     Hospital (2.2%)               
                     
     Deschutes County, Oregon Hospital Facilities Authority (Cascade Health)               
 3,500,000   8.000%, 01/01/28   A2/NR/NR    3,720,115      
 3,250,000   5.375%, 01/01/35 AMBAC Insured   A2/NR/NR    3,250,000      
                     
     Oregon Health Sciences University               
 4,500,000   5.750%, 07/01/39 Series A   Aa3/AA-/NR    4,777,425      
                     
     Salem, Oregon Hospital Facility Authority (Salem Hospital)               
 2,000,000   5.750%, 08/15/23   NR/A+/A+    2,051,560      
                     
     Total Hospital        13,799,100      
                     
     Lottery (1.5%)               
                     
     Oregon State Department of Administration Services (Lottery Revenue)               
 6,285,000   5.250%, 04/01/26   NR/NR/NR*    6,975,722      
 2,500,000   5.000%, 04/01/29   Aa2/AAA/NR    2,607,100      
                     
     Total Lottery        9,582,822      

 

 

     Transportation (2.2%)               
                     
     Oregon State Department Transportation Highway Usertax (Senior Lien)               
 1,865,000   5.000%, 11/15/23 Series A   Aa1/AAA/NR    1,953,457      
 2,000,000   4.625%, 11/15/25 Series A   Aa1/AAA/NR    2,084,760      
 1,000,000   5.000%, 11/15/26 Series A   Aa1/AAA/AA+    1,174,340      
                     
     Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt               
 1,685,000   5.000%, 10/01/24 Series A   A3/A/NR    1,883,257      
 3,480,000   5.000%, 10/01/26 Series A   A3/A/NR    3,889,457      
 3,000,000   5.000%, 10/01/27 Series A   A3/A/NR    3,352,980      
                     
     Total Transportation        14,338,251      
                     
     Water and Sewer (1.9%)               
                     
     Lane County, Oregon Metropolitan Wastewater               
 2,500,000   5.250%, 11/01/28   Aa2/AA/NR    2,577,625      
                     
     Portland Oregon Sewer System Refunding (Second Lien)               
 5,000,000   5.000%, 06/15/33 Series B   Aa3/AA-/NR    5,081,350      
                     
     Washington County, Oregon Clean Water Services Sewer               
 4,000,000   5.000%, 10/01/28   Aa1/AAA/NR    4,233,640      
                     
     Total Water and Sewer        11,892,615      
                     
     Total Pre-Refunded Revenue Bonds        70,069,645      
                     
     Total Pre-Refunded Bonds        135,949,790      
                     
     Total Investments (cost $615,471,180-note b)   99.5%   633,312,317      
     Other assets less liabilities   0.5    3,381,973      
     Net Assets   100.0%  $636,694,290      

 

                     
         Percent of           
     Portfolio Distribution By Quality Rating   Investments †            
                     
     Aaa of Moody's or AAA of S&P   19.0%           
     Pre-refunded bonds††   21.5           
     Aa of Moody's or AA of S&P or Fitch   53.5           
     A of Moody's or S&P   4.6           
     Baa of Moody's or BBB of S&P   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               
     ODOT - Oregon Department of Transportation               
                     
     * 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.           
                     
    

Note: 144A – Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

           

 

 See accompanying notes to financial statements.

 

 

AQUILA TAX-FREE TRUST OF OREGON  
 NOTES TO FINANCIAL STATEMENTS  
December 31, 2017  
(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, 2017, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $615,471,180 amounted to $17,841,137, which consisted of aggregate gross unrealized appreciation of $19,214,666 and aggregate gross unrealized depreciation of $1,373,529.  
       
(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, 2017:  

 

Valuation Inputs  Investments in Securities
Level 1 – Quoted Prices  $ —  
 Level 2 – Other Significant Observable Inputs-Municipal Bonds+   633,312,317 
 Level 3 – Significant Unobservable Inputs   — 
 Total  $633,312,317 
 +See schedule of investments for a detailed listing of securities.     

 

 

Item 2. Controls and Procedures.

 

(a) The Trust'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 27, 2018    

 

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 27, 2018    
       
       
By: /s/ Joseph P. DiMaggio    
  Joseph P. DiMaggio    
  Chief Financial Officer and Treasurer    
  February 27, 2018