N-Q 1 e618216_nq-tct.htm THE CASCADES TRUST 06/30/2018 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, 2018

 

Date of reporting period: June 30, 2018

 

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
June 30, 2018
(unaudited)

 

Amount  General Obligation Bonds (49.6%)  Ratings Moody's, S&P and Fitch  Value  (a)
             
   City & County (6.5%)         
             
     Bend, Oregon               
$2,435,000   4.000%, 06/01/24   Aa2/NR/NR   $2,610,661     
                     
     Canby, Oregon               
 1,060,000   5.000%, 06/01/27   A1/NR/NR    1,141,048      
 1,405,000   4.000%, 12/01/24 AGMC Insured   A1/NR/NR    1,486,265      
                     
     Clackamas County, Oregon Refunding               
 1,135,000   4.000%, 06/01/24   Aaa/NR/NR    1,217,764      
                     
     Gresham, Oregon Full Faith and Credit Refunding and Project Obligations               
 1,545,000   5.000%, 05/01/23   Aa2/NR/NR    1,748,878      
                     
     Lake Oswego, Oregon Refunding               
 3,140,000   4.000%, 12/01/30   Aaa/AAA/NR    3,474,441      
                     
     Lebanon, Oregon Refunding               
 1,050,000   5.000%, 06/01/24   A1/NR/NR    1,176,777      
 1,165,000   5.000%, 06/01/25   A1/NR/NR    1,340,799      
                     
     McMinnville, Oregon Refunding               
 2,075,000   5.000%, 02/01/27   Aa3/NR/NR    2,371,580      
                     
     Multnomah County, Oregon               
 3,000,000   5.000%, 06/01/30   Aaa/AAA/NR    3,564,090      
                     
     Portland, Oregon Limited Tax, Sellwood Bridge & Archive Space Projects               
 1,640,000   4.000%, 04/01/29 2017 Series A   Aaa/NR/NR    1,805,017      
 1,710,000   4.000%, 04/01/30 2017 Series A   Aaa/NR/NR    1,876,469      
 1,775,000   4.000%, 04/01/31 2017 Series A   Aaa/NR/NR    1,929,088      
                     
     Portland, Oregon Public Safety               
 1,345,000   5.000%, 06/15/25 Series A   Aaa/NR/NR    1,582,675      
 2,130,000   4.125%, 06/01/26 Series A   Aaa/NR/NR    2,177,648      
                     
     Redmond, Oregon Refunding               
 735,000   5.000%, 06/01/23 Series A   Aa3/NR/NR    815,203      
                     
     Springfield, Oregon               
 1,765,000   4.000%, 06/01/24   Aa3/NR/NR    1,944,289      
 1,830,000   4.000%, 06/01/25   Aa3/NR/NR    2,025,243      
                     
     Washington County, Oregon               
 5,055,000   4.000%, 06/01/29 Series B   Aaa/NR/NR    5,554,232      
                     
     Total City & County        39,842,167      
                     
     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    1,056,466      
                     
     Central Oregon Community College District               
 1,850,000   4.750%, 06/15/22   NR/AA+/NR    1,956,653      
 2,195,000   4.750%, 06/15/23   NR/AA+/NR    2,319,808      
 2,175,000   4.750%, 06/15/26   NR/AA+/NR    2,293,951      
                     
     Chemeketa, Oregon Community College District               
 2,000,000   5.000%, 06/15/25   NR/AA+/NR    2,301,060      

 

 

 

 

                     
     Clackamas, Oregon Community College District               
 1,405,000   5.000%, 06/15/27 Series A   Aa1/AA+/NR    1,630,713      
                     
     Columbia Gorge, Oregon Community College District, Refunding               
 1,000,000   4.000%, 06/15/24   Aa1/NR/NR    1,069,690      
                     
     Lane, Oregon Community College               
 1,840,000   5.000%, 06/15/24   NR/AA+/NR    2,051,600      
 1,750,000   4.000%, 06/15/24   Aa1/NR/NR    1,917,598      
                     
     Linn Benton, Oregon Community College               
 1,520,000   5.000%, 06/01/27   NR/AA+/NR    1,762,926      
                     
     Mount Hood, Oregon Community College District Refunding               
 1,865,000   5.000%, 06/01/27   Aa2/NR/NR    2,191,897      
 1,000,000   5.000%, 06/01/29   Aa2/NR/NR    1,165,930      
                     
     Oregon Coast Community College District State               
 1,770,000   5.000%, 06/15/25   Aa1/NR/NR    1,974,258      
                     
     Rogue, Oregon Community College District               
 1,375,000   4.000%, 06/15/29 Series B   Aa1/NR/NR    1,490,830      
                     
     Total Community College        25,183,380      
                     
                     
     Higher Education (0.9%)               
                     
     Oregon State Higher Education               
 1,000,000   5.000%, 08/01/25 Series C   Aa1/AA+/AA+    1,157,230      
 1,795,000   5.000%, 08/01/27 Series C   Aa1/AA+/AA+    2,070,604      
                     
     Oregon State, Oregon University System               
 1,170,000   4.000%, 08/01/25 Series B   Aa1/AA+/AA+    1,252,169      
 1,090,000   5.000%, 08/01/25 Series N   Aa1/AA+/AA+    1,240,911      
                     
     Total Higher Education        5,720,914      
                     
     Hospital (0.8%)               
                     
     Pacific Communities Health District, Oregon               
 1,220,000   5.000%, 06/01/29   A1/NR/NR    1,403,647      
 1,060,000   5.000%, 06/01/30   A1/NR/NR    1,216,329      
 1,000,000   5.000%, 06/01/31   A1/NR/NR    1,145,200      
 1,200,000   5.000%, 06/01/32   A1/NR/NR    1,371,504      
                     
     Total Hospital        5,136,680      
                     
     School District (25.2%)               
                     
     Clackamas County, Oregon School District #12 (North Clackamas)               
 2,450,000   5.000%, 06/15/25   Aa1/AA+/NR    2,827,643      
 1,165,000   5.000%, 06/15/25   Aa1/AA+/NR    1,364,320      
 1,500,000   5.000%, 06/15/26   Aa1/AA+/NR    1,726,695      
 4,725,000   5.000%, 06/15/31   Aa1/AA+/NR    5,571,531      
 2,160,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    2,560,162      
                     
     Clackamas County, Oregon School District #62 (Oregon City)               
 1,000,000   5.000%, 06/01/29 MAC Insured   Aa3/AA/NR    1,130,690      
                     
     Clackamas County, Oregon School District #86 (Canby)               
 1,800,000   5.000%, 06/15/24   Aa1/AA+/NR    2,009,898      
 1,110,000   5.000%, 06/15/25 Series A   Aa1/AA+/NR    1,237,650      
                     
     Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)               
 3,500,000   5.000%, 06/15/26   Aa1/AA+/NR    4,093,915      
 5,500,000   5.000%, 06/15/27   Aa1/AA+/NR    6,417,950      
 1,115,000   5.000%, 06/15/28   Aa1/AA+/NR    1,299,544      
                     
     Clatsop County, Oregon School District #10 (Seaside)               
 1,000,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    1,185,260      
                     
     Coos County, Oregon School District #9 (Coos Bay)               
 1,035,000   5.000%, 06/15/32   NR/AA+/NR    1,232,519      

 

 

 

 

     Deschutes County, Oregon Administrative School District #1 (Bend - La Pine)               
 3,000,000   4.000%, 06/15/30   Aa1/AA+/NR    3,258,450      
                     
     Deschutes County, Oregon School District #6 (Sisters)               
 1,735,000   5.250%, 06/15/19 AGMC Insured   A2/AA+/NR    1,797,130      
 1,030,000   5.250%, 06/15/21 AGMC Insured   A2/AA+/NR    1,128,839      
                     
     Deschutes and Jefferson Counties, Oregon School District #02J (Redmond)               
 80,000   5.000%, 06/15/21 NPFG/ FGIC Insured   Aa1/NR/NR    80,222      
 1,025,000   zero coupon, 06/15/23   Aa1/NR/NR    917,990      
                     
     Greater Albany School District #8J (Linn & Benton Counties)               
 1,000,000   5.000%, 06/15/30   Aa1/AA+/NR    1,181,770      
                     
     Hood River County, Oregon School District               
 2,825,000   4.000%, 06/15/29   NR/AA+/NR    3,077,696      
 2,260,000   4.000%, 06/15/30   NR/AA+/NR    2,443,693      
 2,400,000   4.000%, 06/15/31   NR/AA+/NR    2,572,104      
                     
     Jefferson County, Oregon School District #509J               
 1,400,000   5.000%, 06/15/25   Aa1/NR/NR    1,589,210      
                     
     Klamath County, Oregon School District               
 1,250,000   5.000%, 06/15/24   NR/AA+/NR    1,422,725      
                     
     Lane County, Oregon School District #4J (Eugene) Refunding               
 1,130,000   4.000%, 06/15/23   Aa1/NR/NR    1,196,421      
 2,850,000   4.000%, 06/15/24   Aa1/NR/NR    3,066,543      
 2,765,000   3.000%, 06/15/24   Aa1/NR/NR    2,879,858      
 4,575,000   5.000%, 06/15/26   Aa1/NR/NR    5,249,950      
                     
     Lane County, Oregon School District #19 (Springfield)               
 1,000,000   5.000%, 06/15/25   Aa1/AA+/NR    1,158,570      
 1,735,000   5.000%, 06/15/27   Aa1/AA+/NR    2,020,945      
                     
     Lane County, Oregon School District #69 (Junction City)               
 630,000   5.000%, 06/15/25   Aa1/NR/NR    737,787      
                     
     Lane & Douglas Counties, Oregon School District #45J3               
 2,665,000   4.000%, 06/15/27 Series B   Aa1/NR/NR    2,933,392      
                     
     Lincoln County, Oregon School District               
 2,370,000   4.000%, 06/15/24 Series A   Aa1/NR/NR    2,505,801      
                     
     Marion County, Oregon School District #103 (Woodburn)               
 2,140,000   5.000%, 06/15/27   Aa1/NR/NR    2,498,664      
 2,260,000   5.000%, 06/15/28   Aa1/NR/NR    2,634,053      
                     
     Marion & Clackamas Counties, Oregon School District #4J (Silver Falls)               
 1,260,000   5.000%, 06/15/24   Aa1/NR/NR    1,434,107      
                     
     Morrow County, Oregon School District #1               
 1,710,000   5.250%, 06/15/19 AGMC Insured   A2/AA+/NR    1,771,235      
                     
     Multnomah County, Oregon School District #1J (Portland)               
 2,970,000   5.000%, 06/15/26 Series B   Aa1/AA+/NR    3,467,772      
                     
     Multnomah County, Oregon School District #7 (Reynolds)               
 5,680,000   5.000%, 06/15/26 Series A   Aa1/NR/NR    6,631,968      
 1,500,000   5.000%, 06/15/27 Series A   Aa1/NR/NR    1,745,130      
 1,825,000   5.000%, 06/15/28 Series A   Aa1/NR/NR    2,120,723      
                     
     Multnomah County, Oregon School District #7 (Reynolds) Refunding               
 1,165,000   5.000%, 06/01/29   Aa3/NR/NR    1,234,026      
                     
     Multnomah County, Oregon School District #40 (David Douglas)               
 1,500,000   5.000%, 06/15/23 Series A   NR/AA+/NR    1,670,070      
                     
     Multnomah and Clackamas Counties, Oregon School District #10 (Gresham-Barlow)               
 4,275,000   5.250%, 06/15/19 AGMC Insured   Aa1/AA+/NR    4,424,796      
 2,500,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    2,963,150      
                     
     Multnomah and Clackamas Counties, Oregon School District #28JT (Centennial)               
 2,680,000   5.250%, 12/15/18 AGMC Insured   Aa1/NR/NR    2,725,962      
                     
     Polk, Marion & Benton Counties, Oregon School District #13J (Central)               
 1,515,000   4.000%, 02/01/28   NR/AA+/NR    1,632,003      

 

 

 

 

     Union County, Oregon School District #1 (La Grande)               
 1,000,000   5.000%, 06/15/27   Aa1/NR/NR    1,160,650      
                     
     Wasco County, Oregon School District #12 (The Dalles)               
 1,790,000   5.500%, 06/15/20 AGMC Insured   A2/AA/NR    1,922,048      
                     
     Washington County, Oregon School District #48J (Beaverton)               
 2,750,000   4.000%, 06/15/25   Aa1/AA+/NR    2,938,430      
 2,275,000   4.000%, 06/15/23 Series B   Aa1/AA+/NR    2,449,652      
 5,290,000   4.000%, 06/15/24 Series B   Aa1/AA+/NR    5,683,629      
 3,000,000   5.000%, 06/15/25 Series 2014B   Aa1/AA+/NR    3,462,420      
 3,000,000   5.000%, 06/15/28 Series 2014B   Aa1/AA+/NR    3,433,620      
 1,845,000   5.000%, 06/15/29 Series 2014B   Aa1/AA+/NR    2,106,178      
 1,500,000   5.000%, 06/15/27 Series C   Aa1/AA+/NR    1,800,375      
 1,015,000   4.000%, 06/01/29 Series 2016   Aa2/NR/NR    1,096,383      
                     
     Washington, Clackamas & Yamhill Counties, Oregon School District #88J               
 2,785,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    3,300,949      
                     
     Washington, Clackamas & Yamhill Counties, Oregon School District #88J               
 2,000,000   5.000%, 06/15/29 Series B   Aa1/AA+/NR    2,408,680      
                     
     Washington, Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)               
 1,535,000   4.000%, 06/15/25   Aa1/NR/NR    1,642,573      
 3,105,000   5.000%, 06/15/30   Aa1/NR/NR    3,669,396      
                     
     Washington, Multnomah & Yamhill Counties, Oregon School District #1J (Hillsboro)               
 2,110,000   5.000%, 06/15/31   Aa1/NR/NR    2,488,028      
                     
     Yamhill County, Oregon School District #40 (McMinnville)               
 2,255,000   4.000%, 06/15/26   Aa1/NR/NR    2,425,704      
 1,000,000   4.000%, 06/15/29   Aa1/AA+/NR    1,091,690      
 1,000,000   4.000%, 06/15/30   Aa1/AA+/NR    1,084,990      
                     
     Total School Districts        154,995,927      
                     
     Special District (4.1%)               
                     
     Bend, Oregon Metropolitan Park & Recreational District               
 1,430,000   4.000%, 06/01/27   Aa3/NR/NR    1,512,239      
                     
     Clackamas County, Oregon Fire District No. 1               
 1,020,000   4.000%, 06/01/30   NR/AA/NR    1,115,921      
 2,705,000   4.000%, 06/01/31   NR/AA/NR    2,930,489      
                     
     Metro, Oregon               
 4,000,000   4.000%, 06/01/26 Series A   Aaa/AAA/NR    4,271,440      
                     
     Tualatin Hills, Oregon Park & Recreational District               
 3,480,000   5.000%, 06/01/23   Aa1/NR/NR    3,965,982      
 4,725,000   5.000%, 06/01/24   Aa1/NR/NR    5,474,338      
 2,775,000   5.000%, 06/01/26   Aa1/NR/NR    3,237,676      
                     
     Tualatin Valley, Oregon Fire & Rescue Rural Fire Protection District               
 1,235,000   4.000%, 06/01/26   Aaa/NR/NR    1,297,330      
 1,170,000   4.000%, 06/01/27   Aaa/NR/NR    1,226,020      
                     
     Total Special District        25,031,435      
                     
     State (6.4%)               
                     
     State of Oregon               
 750,000   5.000%, 05/01/25 Series A   Aa1/AA+/AA+    863,805      
 3,000,000   5.000%, 05/01/23 Series L   Aa1/AA+/AA+    3,262,590      
 1,125,000   5.000%, 05/01/24 Series L   Aa1/AA+/AA+    1,222,166      
 1,470,000   4.000%, 11/01/26 Series M   Aa1/AA+/AA+    1,554,422      
 2,125,000   4.000%, 05/01/25 Series O   Aa1/AA+/AA+    2,237,625      
                     
     State of Oregon Article XI-G Community College Projects               
 1,160,000   5.000%, 08/01/27 Series J   Aa1/AA+/AA+    1,355,228      
                     
     State of Oregon Article XI-G Higher Education               
 500,000   5.000%, 08/01/25 Series O   Aa1/AA+/AA+    588,420      
 1,000,000   5.000%, 08/01/26 Series O   Aa1/AA+/AA+    1,171,850      
 1,000,000   5.000%, 08/01/27 Series O   Aa1/AA+/AA+    1,168,300      

 

 

 

 

     State of Oregon Article XI-M Seismic Projects               
 1,000,000   5.000%, 06/01/30   Aa1/AA+/AA+    1,169,810      
                     
     State of Oregon Article XI-Q State Projects               
 2,140,000   5.000%, 11/01/28   Aa1/AA+/AA+    2,514,821      
 1,000,000   5.000%, 11/01/30   Aa1/AA+/AA+    1,167,420      
 2,000,000   5.000%, 11/01/31   Aa1/AA+/AA+    2,330,220      
 1,195,000   5.000%, 05/01/28 Series D   Aa1/AA+/AA+    1,406,157      
 1,255,000   5.000%, 05/01/29 Series D   Aa1/AA+/AA+    1,470,923      
 1,000,000   5.000%, 05/01/30 Series D   Aa1/AA+/AA+    1,168,190      
 2,300,000   5.000%, 05/01/28 Series F   Aa1/AA+/AA+    2,668,184      
                     
     State of Oregon Department of Administrative Services COP               
 1,815,000   5.000%, 11/01/27 Series C   Aa2/AA/AA    1,891,557      
 1,195,000   5.000%, 11/01/28 Series C   Aa2/AA/AA    1,245,405      
                     
     State of Oregon Department of Administrative Services, Oregon Opportunity Refunding               
 6,210,000   5.000%, 12/01/19   Aa1/AA+/AA+    6,506,031      
                     
     State of Oregon Higher Education               
 1,000,000   5.000%, 08/01/28 Series A   Aa1/AA+/AA+    1,164,050      
 1,250,000   5.000%, 08/01/30 Series L   Aa1/AA+/AA+    1,487,825      
                     
     Total State        39,614,999      
                     
     Transportation (1.2%)               
                     
     Oregon State Department Transportation Highway Usertax (Senior Lien)               
 5,000,000   5.000%, 11/15/29 Series B   Aa1/AAA/AA+    5,931,600      
                     
     State of Oregon ODOT Projects               
 1,020,000   5.000%, 11/15/30 Series M   Aa1/AA+/AA+    1,210,046      
                     
     Total Transportation        7,141,646      
                     
     Water & Sewer (0.4%)               
                     
     Gearheart, Oregon               
 1,060,000   4.500%, 03/01/26 AGMC Insured   A2/NR/NR    1,117,017      
                     
     Rockwood, Oregon Water Peoples Utility District Water Revenue Refunding               
 1,270,000   4.250%, 08/15/26   A1/NR/NR    1,341,298      
                     
     Total Water & Sewer        2,458,315      
                     
     Total General Obligation Bonds        305,125,463      
                     
     Revenue Bonds (30.6%)               
                     
     City & County (2.3%)               
                     
     Newport, Oregon Urban Renewal Obligations, Refunding               
 565,000   4.500%, 06/15/22 Series B   NR/AA-/NR    594,990      
                     
     Portland, Oregon Revenue Refunding Limited Tax, Oregon Convention Center               
 2,825,000   5.000%, 06/01/24   Aaa/NR/NR    3,074,335      
 4,265,000   5.000%, 06/01/27   Aaa/NR/NR    4,637,633      
                     
     Portland, Oregon Revenue Refunding Limited Tax               
 1,000,000   4.000%, 04/01/22 Series A   Aaa/NR/NR    1,017,670      
                     
     Portland, Oregon River District Urban Renewal and Redevelopment               
 1,600,000   5.000%, 06/15/22 Series B   A1/NR/NR    1,776,272      
 1,830,000   5.000%, 06/15/23 Series B   A1/NR/NR    2,027,933      
                     
     Portland, Oregon Urban Renewal and Redevelopment, Refunding, North Macadam               
 1,000,000   4.000%, 06/15/25 Series B   A1/NR/NR    1,033,390      
                     
     Total City & County        14,162,223      
                     
     Electric (1.6%)               
                     
     Eugene, Oregon  Electric Utility Refunding System               
 2,875,000   5.000%, 08/01/29 Series A   Aa2/AA-/AA-    3,374,761      
 4,030,000   5.000%, 08/01/30 Series A   Aa2/AA-/AA-    4,727,311      

 

 

 

 

     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    1,736,066      
                     
     Total Electric        9,838,138      
                     
     Higher Education (1.8%)               
                     
     Oregon State Facilities Authority (Lewis & Clark College Project)               
 1,000,000   5.250%, 10/01/24 Series A   A3/A-/NR    1,096,610      
 3,000,000   5.000%, 10/01/27 Series A   A3/A-/NR    3,257,610      
                     
     Oregon State Facilities Authority (Linfield College Project)               
 1,180,000   5.000%, 10/01/22 Series A   Baa1/NR/NR    1,310,614      
 1,000,000   5.000%, 10/01/23 Series A   Baa1/NR/NR    1,129,480      
 1,220,000   5.000%, 10/01/31 Series A 2010   Baa1/NR/NR    1,274,693      
                     
     Oregon State Facilities Authority (Reed College Project)               
 500,000   5.000%, 07/01/30 Series A   Aa2/AA-/NR    589,540      
 1,135,000   4.000%, 07/01/31 Series A   Aa2/AA-/NR    1,232,281      
                     
     Oregon State Facilities Authority (Willamette University)               
 1,000,000   4.000%, 10/01/24   NR/A/NR    1,030,440      
                     
     Total Higher Education        10,921,268      
                     
     Hospital (4.9%)               
                     
     Medford, Oregon Hospital Facilities Authority Revenue Refunding, Asante Health Systems               
 9,000,000   5.500%, 08/15/28 AGMC Insured   NR/AA/NR    9,649,440      
                     
     Oregon Health Sciences University               
 9,025,000   zero coupon, 07/01/21 NPFG Insured   Aa3/AA-/AA-    8,037,665      
 2,000,000   5.000%, 07/01/23 Series A   Aa3/AA-/AA-    2,215,440      
 1,250,000   5.000%, 07/01/28 Series B   Aa3/AA-/AA-    1,462,338      
 1,000,000   5.000%, 07/01/33 Series B   Aa3/AA-/AA-    1,151,190      
                     
     Oregon State Facilities Authority Revenue Refunding, Legacy Health Systems               
 1,000,000   4.750%, 03/15/24   A1/AA-/NR    1,045,710      
 1,000,000   5.000%, 03/15/30   A1/AA-/NR    1,045,410      
                     
     Oregon State Facilities Authority Revenue Refunding, Samaritan Health Services               
 1,500,000   4.375%, 10/01/20   NR/BBB+/NR    1,578,105      
 2,000,000   4.500%, 10/01/21   NR/BBB+/NR    2,107,340      
 1,520,000   5.000%, 10/01/23   NR/BBB+/NR    1,621,278      
                     
     Total Hospital        29,913,916      
                     
     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   Aa2/NR/NR    1,364,810      
                     
     Portland, Oregon Urban Renewal and Redevelopment, Interstate Corridor               
 1,390,000   5.000%, 06/15/27 Series B   A1/NR/NR    1,501,812      
                     
     State of Oregon Housing and Community Services               
 950,000   1.800%, 01/01/23   Aa2/NR/NR    927,438      
                     
     Total Housing        3,794,060      
                     
     Lottery (4.2%)               
                     
     Oregon State Department of Administration Services (Lottery Revenue)               
 1,015,000   5.250%, 04/01/26 Series A   Aa2/AAA/NR    1,103,488      
 1,715,000   5.000%, 04/01/24 Series B   Aa2/AAA/NR    1,895,092      
 1,500,000   5.000%, 04/01/25 Series B   Aa2/AAA/NR    1,653,525      
 1,000,000   5.000%, 04/01/25 Series B   Aa2/AAA/NR    1,150,870      
 3,000,000   5.000%, 04/01/26 Series C   Aa2/AAA/NR    3,493,080      
 4,000,000   5.000%, 04/01/30 Series C   Aa2/AAA/NR    4,732,680      
 5,000,000   5.000%, 04/01/26 Series D   Aa2/AAA/NR    5,821,800      
 4,000,000   5.000%, 04/01/28 Series D   Aa2/AAA/NR    4,641,200      
 1,000,000   5.000%, 04/01/29 Series D   Aa2/AAA/NR    1,154,910      
                     
     Total Lottery        25,646,645      

 

 

 

 

                     
     Sales Tax (0.1%)               
                     
     Metro, Oregon Dedicated Tax Revenue (Oregon Convention Center Hotel)               
 750,000   5.000%, 06/15/31   Aa3/NR/NR    874,650      
                     
     Transportation (6.7%)               
                     
     Oregon State Department Transportation Highway Usertax (Senior Lien)               
 3,605,000   5.000%, 11/15/24 Series A   Aa1/AAA/AA+    4,053,390      
 2,425,000   5.000%, 11/15/25 Series A   Aa1/AAA/AA+    2,724,439      
 1,040,000   5.000%, 11/15/26 Series A   Aa1/AAA/AA+    1,208,740      
 8,000,000   5.000%, 11/15/28 Series A   Aa1/AAA/AA+    9,251,760      
                     
     Port Portland, Oregon Airport Revenue Refunding, Portland International Airport Series Twenty Three               
 2,525,000   5.000%, 07/01/26   NR/AA-/NR    2,926,021      
 1,000,000   5.000%, 07/01/28   NR/AA-/NR    1,146,390      
 2,390,000   5.000%, 07/01/29   NR/AA-/NR    2,728,424      
                     
     Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt               
 1,100,000   5.000%, 10/01/27 Series A   A3/A/NR    1,290,971      
 2,000,000   5.000%, 10/01/30 Series A   A3/A/NR    2,343,100      
                     
     Tri-County Metropolitan Transportation District, Oregon (Senior Lien Payroll Tax)               
 1,000,000   5.000%, 09/01/25 Series A   Aaa/AAA/NR    1,179,470      
 1,890,000   5.000%, 09/01/28 Series A   Aaa/AAA/NR    2,242,939      
 1,650,000   5.000%, 09/01/29 Series A   Aaa/AAA/NR    1,943,436      
 3,975,000   5.000%, 09/01/30 Series A   Aaa/AAA/NR    4,669,115      
 1,000,000   5.000%, 09/01/31 Series A   Aaa/AAA/NR    1,190,900      
 2,010,000   5.000%, 09/01/29 Series B   Aaa/AAA/NR    2,344,705      
                     
     Total Transportation        41,243,800      
                     
     Water and Sewer (8.5%)               
                     
     Clackamas County, Oregon  Service District No. 1               
 2,240,000   5.000%, 12/01/26   NR/AAA/NR    2,671,738      
                     
     Clean Water Services, Oregon Refunding (Senior Lien)               
 1,510,000   5.000%, 10/01/27   Aa1/AAA/NR    1,819,807      
                     
     Eugene, Oregon Water Utility System               
 115,000   5.000%, 08/01/28   Aa2/AA/AA+    135,357      
 450,000   5.000%, 08/01/29   Aa2/AA/AA+    525,722      
                     
     Grants Pass, Oregon               
 1,000,000   4.000%, 12/01/23   NR/AA/NR    1,082,270      
                     
     Madras, Oregon               
 725,000   4.500%, 02/15/27   A3/NR/NR    776,062      
                     
     Portland, Oregon Water System (First Lien)               
 3,230,000   5.000%, 05/01/27 Series A   Aaa/NR/NR    3,718,215      
 3,500,000   5.000%, 06/01/28 Series A   Aa1/AA/NR    4,059,370      
                     
     Portland, Oregon Sewer System (Second Lien)               
 3,005,000   5.000%, 03/01/28 Series A   Aa2/AA-/NR    3,164,145      
 5,405,000   4.500%, 05/01/31 Series A   Aa2/AA-/NR    6,054,735      
 2,000,000   5.000%, 10/01/25 Series B   Aa2/AA-/NR    2,314,880      
 2,000,000   5.000%, 06/01/26 Series B   Aa2/AA-/NR    2,334,840      
 2,000,000   5.000%, 06/01/27 Series B   Aa2/AA-/NR    2,329,300      
                     
     Portland, Oregon Water System Revenue Refunding (Junior Lien)               
 2,000,000   5.000%, 10/01/23   Aa1/NR/NR    2,265,380      
                     
     Portland, Oregon Water System Revenue Refunding  (Senior Lien)               
 1,275,000   4.000%, 05/01/25 Series A   Aaa/NR/NR    1,324,011      
                     
     Salem, Oregon Water & Sewer Revenue Refunding               
 3,500,000   5.000%, 06/01/25   Aa2/NR/NR    4,098,150      
                     
     Seaside, Oregon Wastewater System               
 1,000,000   4.250%, 07/01/26   A3/NR/NR    1,046,940      
                     
     Tigard, Oregon Water System Revenue Refunding               
 2,565,000   5.000%, 08/01/24   Aa3/AA-/NR    2,853,152      

 

 

 

 

                     
     Washington County, Oregon Clean Water Services Sewer (Senior Lien)               
 1,010,000   4.000%, 10/01/22 Series B   Aa1/AAA/NR    1,075,751      
 1,500,000   4.000%, 10/01/23 Series B   Aa1/AAA/NR    1,596,180      
 2,850,000   4.000%, 10/01/26 Series B   Aa1/AAA/NR    2,985,974      
 2,745,000   4.000%, 10/01/28 Series B   Aa1/AAA/NR    2,855,047      
                     
     Woodburn, Oregon Wastewater Revenue Refunding               
 1,090,000   5.000%, 03/01/21 Series A   A1/NR/NR    1,173,123      
                     
     Total Water and Sewer        52,260,149      
                     
     Total Revenue Bonds        188,654,849      
                     
     Pre-Refunded Bonds (18.4%)††               
                     
     Pre-Refunded General Obligation Bonds (8.8%)               
                     
     City & County (0.3%)               
                     
     City of Salem, Oregon               
 1,750,000   5.000%, 06/01/29   NR/AA/NR    1,804,233      
                     
     Community College (1.3%)               
                     
     Portland, Oregon Community College District               
 7,915,000   5.000%, 06/15/28   Aa1/AA+/NR    8,174,533      
                     
     Higher Education (0.8%)               
                     
     Oregon State, Oregon University System Projects               
 2,365,000   4.000%, 08/01/26 Series H   Aa1/AA+/AA+    2,518,749      
                     
     State of Oregon Board of Higher Education               
 1,000,000   5.000%, 08/01/34   Aa1/AA+/NR    1,002,840      
 1,000,000   5.000%, 08/01/38   Aa1/AA+/NR    1,002,840      
 500,000   5.750%, 08/01/29 Series A   Aa1/AA+/NR    501,710      
                     
     Total Higher Education        5,026,139      
                     
     School District (4.6%)               
                     
     Clackamas County, Oregon School District #46 (Oregon Trail)               
 1,000,000   5.000%, 06/15/22   NR/AA+/NR    1,032,790      
 1,865,000   5.000%, 06/15/28 Series A   NR/AA+/NR    1,926,153      
 1,800,000   5.000%, 06/15/29 Series A   NR/AA+/NR    1,859,022      
 2,000,000   5.000%, 06/15/32 Series A   NR/AA+/NR    2,065,580      
 3,780,000   4.750%, 06/15/32 Series A   NR/AA+/NR    3,895,063      
                     
     Clackamas & Washington Counties, Oregon School District No. 3JT (West Linn-Wilsonville)               
 1,110,000   5.000%, 06/15/26   Aa1/AA+/NR    1,146,397      
 2,850,000   5.000%, 06/15/27   Aa1/AA+/NR    2,943,452      
 2,000,000   4.500%, 06/15/29   Aa1/AA+/NR    2,056,180      
 1,965,000   5.000%, 06/15/30   Aa1/AA+/NR    2,029,432      
 3,000,000   5.000%, 06/15/33   Aa1/AA+/NR    3,098,370      
 500,000   5.000%, 06/15/34   Aa1/AA+/NR    516,395      
                     
     Columbia & Washington Counties, Oregon School District #47J (Vernonia)               
 3,430,000   5.00%, 06/15/27   NR/AA+/NR    3,645,473      
                     
     Washington County, Oregon School District #48J (Beaverton)               
 1,280,000   5.000%, 06/01/31 AGC Insured   Aa2/AA/NR    1,320,256      
 1,000,000   5.125%, 06/01/36 AGC Insured   Aa2/AA/NR    1,032,580      
                     
     Total School District        28,567,143      
                     
     Special District (0.2%)               
                     
     Tualatin Hills, Oregon Park & Recreational District               
 1,000,000   4.250%, 06/01/24   Aa1/AA/NR    1,024,690      
                     
     State (1.5%)               
                     
     State of Oregon Alternative Energy Project               
 1,255,000   4.750%, 04/01/29 Series B   Aa1/AA+/AA+    1,285,534      
 500,000   6.000%, 10/01/29 Series B   Aa1/AA+/AA+    505,665      

 

 

 

 

                     
     State of Oregon  Department of Administrative Services               
 5,000,000   5.125%, 05/01/33   Aa2/AA/AA    5,149,700      
                     
     State of Oregon  Department of Administrative Services COP               
 1,455,000   5.000%, 11/01/27 Series C   NR/NR/NR*    1,518,525      
 960,000   5.000%, 11/01/28 Series C   NR/NR/NR*    1,001,914      
                     
     Total State        9,461,338      
                     
     Total Pre-Refunded General Obligation Bonds        54,058,076      
                     
     Pre-Refunded Revenue Bonds (9.6%)               
                     
     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    2,600,150      
                     
     Electric (1.3%)               
                     
     Eugene, Oregon  Electric Utility               
 5,635,000   5.000%, 08/01/30   Aa2/AA-/AA-    5,651,003      
                     
     Eugene, Oregon  Electric Utility Refunding System               
 2,000,000   5.000%, 08/01/27 Series A   Aa2/AA-/AA-    2,189,500      
                     
     Total Electric        7,840,503      
                     
     Higher Education (1.1%)               
                     
     Oregon State Facilities Authority Revenue Refunding (Reed College Project)               
 1,500,000   5.000%, 07/01/29 Series A   Aa2/AA-/NR    1,597,890      
                     
     Portland, Oregon Economic Development (Broadway Project)               
 5,000,000   6.500%, 04/01/35   A1/NR/NR    5,062,100      
                     
     Total Higher Education        6,659,990      
                     
     Hospital (1.7%)               
                     
     Deschutes County, Oregon Hospital Facilities Authority (Cascade Health)               
 3,500,000   8.000%, 01/01/28   A2/NR/NR    3,610,950      
                     
     Oregon Health Sciences University               
 4,500,000   5.750%, 07/01/39 Series A   Aa3/AA-/NR    4,685,355      
                     
     Salem, Oregon Hospital Facility Authority (Salem Hospital)               
 2,000,000   5.750%, 08/15/23   NR/A+/AA-    2,010,020      
                     
     Total Hospital        10,306,325      
                     
     Lottery (1.5%)               
                     
     Oregon State Department of Administration Services (Lottery Revenue)               
 6,285,000   5.250%, 04/01/26   NR/NR/NR*    6,855,804      
 2,500,000   5.000%, 04/01/29   Aa2/AAA/NR    2,565,425      
                     
     Total Lottery        9,421,229      
                     
     Transportation (2.3%)               
                     
     Oregon State Department Transportation Highway Usertax (Senior Lien)               
 1,865,000   5.000%, 11/15/23 Series A   Aa1/AAA/NR    1,921,454      
 2,000,000   4.625%, 11/15/25 Series A   Aa1/AAA/NR    2,054,100      
 1,000,000   5.000%, 11/15/26 Series A   Aa1/AAA/AA+    1,149,720      
                     
     Tri-County Metropolitan Transportation District, Oregon Capital Grant Receipt               
 1,685,000   5.000%, 10/01/24 Series A   A3/A/NR    1,840,761      
 3,480,000   5.000%, 10/01/26 Series A   A3/A/NR    3,801,691      
 3,000,000   5.000%, 10/01/27 Series A   A3/A/NR    3,277,320      
                     
     Total Transportation        14,045,046      

 

 

 

 

                     
     Water and Sewer (1.3%)               
                     
     Lane County, Oregon Metropolitan Wastewater               
 2,500,000   5.250%, 11/01/28   Aa2/AA/NR    2,531,625      
                     
     Prineville, Oregon Refunding               
 1,255,000   4.400%, 06/01/29 AGMC Insured   NR/AA/NR    1,344,908      
                     
     Washington County, Oregon Clean Water Services Sewer               
 4,000,000   5.000%, 10/01/28   Aa1/AAA/NR    4,169,840      
                     
     Total Water and Sewer        8,046,373      
                     
     Total Pre-Refunded Revenue Bonds        58,919,616      
                     
     Total Pre-Refunded Bonds        112,977,692      
                     
     Total Investments (cost $600,724,729 note b)   98.6%   606,758,004      
     Other assets less liabilities   1.4    8,881,719      
     Net Assets   100.0%  $615,639,723      

 

         Percent of           
    Portfolio Distribution By Quality Rating   Investments †            
                    
     Aaa of Moody's or AAA of S&P   19.7%         
     Pre-refunded bonds††   18.6           
     Aa of Moody's or AA of S&P or Fitch   55.1           
     A of Moody's or S&P   5.1           
     Baa of Moody's or BBB of S&P   1.5           
         100.0%           

 

    PORTFOLIO ABBREVIATION:               
    AGC - Assured Guaranty Corp.               
     AGMC - Assured Guaranty Municipal 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.           

 

 See accompanying notes to financial statements.

 

 

 

 

AQUILA TAX-FREE TRUST OF OREGON
 NOTES TO FINANCIAL STATEMENTS
June 30, 2018
(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 June 30, 2018, the net unrealized appreciation on investments, based on cost for federal income tax purposes of $600,724,729 amounted to $6,033,275, which consisted of aggregate gross unrealized appreciation of $10,797,582 and aggregate gross unrealized depreciation of $4,764,307.
 
(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 June 30, 2018:

 

Valuation Inputs  Investments in Securities
Level 1 – Quoted Prices  $-
 Level 2 – Other Significant Observable Inputs-Municipal Bonds+   606,758,004 
 Level 3 – Significant Unobservable Inputs   — 
 Total  $606,758,004 

 

 +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  
  August 23, 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  
  August 23, 2018  

 

By: /s/ Joseph P. DiMaggio  
  Joseph P. DiMaggio  
  Chief Financial Officer and Treasurer  
  August 23, 2018