Loading...
HomeMy WebLinkAbout2024/06/30 Comprehensive Annual Financial Report7202552:,1027,21 $118$/&2035(+(16,9( ),1$1&,$/5(3257 &LW\RI5DQFKR&XFDPRQJD )25),6&$/<($5(1'('-81( 7202552:,1027,21111117202552:,1027,217777722222222200000002222222255555555555555522222222::::::::::,,,,,11111111 000000000222222277777,,,,,22222211111117202552: ,1 027,21  &LW\RI5DQFKR&XFDPRQJD&DOLIRUQLD  $QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW  )RU)LVFDO<HDU(QGHG-XQH      3UHSDUHGE\WKH  &LW\RI5DQFKR&XFDPRQJD  )LQDQFH'HSDUWPHQW      -HYLQ.D\H )LQDQFH'LUHFWRU THIS PAGE INTENTIONALLY LEFT BLANK  &,7<2)5$1&+2&8&$021*$&$/,)251,$  $QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW  )RUWKH<HDU(QGHG-XQH  7DEOHRI&RQWHQWV 3DJH 1XPEHU  ,1752'8&725<6(&7,21  /HWWHURI7UDQVPLWWDOL &LW\2IILFLDOVYLL 2UJDQL]DWLRQ&KDUWYLLL &HUWLILFDWHRI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJL[  ),1$1&,$/6(&7,21  ,1'(3(1'(17$8',7256¶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±7&(3  3XEOLF$UW7UXVW)XQG  6WDWH*UDQWV)XQG )HGHUDO*UDQWV)XQG $'5HGHPSWLRQ±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¶VUHSUHVHQWDWLRQVFRQFHUQLQJWKHILQDQFHVRIWKH&LW\RI5DQFKR&XFDPRQJD 0DQDJHPHQWDVVXPHVIXOOUHVSRQVLELOLW\IRUWKHFRPSOHWHQHVVDQGUHOLDELOLW\RIDOOLQIRUPDWLRQSUHVHQWHGLQWKLV UHSRUWEDVHGRQDFRPSUHKHQVLYHLQWHUQDOFRQWUROIUDPHZRUNHVWDEOLVKHGIRUWKLVSXUSRVH%HFDXVHWKHFRVWRI LQWHUQDOFRQWUROVVKRXOGQRWH[FHHGDQWLFLSDWHGEHQHILWVWKHREMHFWLYHLVWRSURYLGHUHDVRQDEOHUDWKHUWKDQDQ DEVROXWHDVVXUDQFHWKDWWKHILQDQFLDOVWDWHPHQWVDUHIUHHRIPDWHULDOPLVVWDWHPHQW  7KH&LW\¶VILQDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\/DQFH6ROO /XQJKDUG//3FHUWLILHGSXEOLFDFFRXQWDQWV 7KHJRDORIWKHLQGHSHQGHQWDXGLWZDVWRSURYLGHUHDVRQDEOHDVVXUDQFHWKDWWKH&LW\¶VILQDQFLDOVWDWHPHQWLVIUHH RIPDWHULDOPLVVWDWHPHQW%DVHGXSRQWKHLUDXGLWWKHDXGLWRUVKDYHLVVXHGDQXQPRGLILHG ³FOHDQ´ RSLQLRQRQWKHVH ILQDQFLDOVWDWHPHQWV7KHLUUHSRUWLVORFDWHGDWWKHIURQWRIWKHILQDQFLDOVHFWLRQRIWKLVUHSRUW  0DQDJHPHQW¶VGLVFXVVLRQDQGDQDO\VLV 0' $ LPPHGLDWHO\IROORZVWKHLQGHSHQGHQWDXGLWRU¶VUHSRUWDQGSURYLGHV DQDUUDWLYHLQWURGXFWLRQRYHUYLHZDQGDQDO\VLVRIWKHEDVLFILQDQFLDOVWDWHPHQWV0' $FRPSOHPHQWVWKLVOHWWHURI WUDQVPLWWDODQGVKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW  Profile of Rancho Cucamonga  7KH&LW\RI5DQFKR&XFDPRQJDLVORFDWHGLQ6DQ%HUQDUGLQR&RXQW\LQWKHVRXWKHDVWHUQSDUWRI&DOLIRUQLD,WLV VLWXDWHGDWWKHIRRWKLOOVRIWKH6DQ*DEULHO0RXQWDLQVDQGSDUWRIWKH,QODQG(PSLUHDPHWURSROLWDQDUHDHDVWRIWKH /RV$QJHOHVPHWURSROLWDQDUHD7KH&LW\HQMR\VDVWUDWHJLFORFDWLRQZLWKSUR[LPLW\WRPDMRUKLJKZD\VSURYLGLQJ HDV\DFFHVVWRRWKHUSDUWVRI&DOLIRUQLD7KLVJHRJUDSKLFDOVHWWLQJRIIHUVDXQLTXHEOHQGRIXUEDQDQGQDWXUDO HQYLURQPHQWVZLWKVFHQLFPRXQWDLQYLHZVDQGXUEDQDPHQLWLHV  7KH&LW\¶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i  7KH&LW\LVDJHQHUDOODZFLW\DQGRSHUDWHVXQGHUWKH&RXQFLO0DQDJHUIRUPRIFLW\JRYHUQPHQWZLWKDILYHPHPEHU &LW\&RXQFLO&RXQFLOPHPEHUVVHUYHVWDJJHUHGIRXU\HDUWHUPV&RXQFLOHOHFWLRQVDUHKHOGLQ1RYHPEHURIHYHQ QXPEHUHG\HDUV7KH0D\RULVHOHFWHGDWODUJHDQG&RXQFLOPHPEHUVDUHHOHFWHGEDVHGRQJHRJUDSKLFGLVWULFWV 7KHUHLVQROLPLWRQWKHQXPEHURIWHUPVDQLQGLYLGXDOFDQVHUYHDV0D\RURU&RXQFLOPHPEHU  7KH&LW\SURYLGHVDIXOOUDQJHRIPXQLFLSDOVHUYLFHVLQFOXGLQJSROLFHSXEOLFZRUNVSODQQLQJEXLOGLQJDQGVDIHW\ UHFUHDWLRQ OLEUDU\ DQLPDO FDUH DQG FRQWURO FRPPXQLW\ LPSURYHPHQW DQG HFRQRPLF GHYHORSPHQW 7KH &LW\ FRQWUDFWVZLWKRWKHUJRYHUQPHQWDOHQWLWLHVSULYDWHILUPVDQGLQGLYLGXDOVWRGHOLYHUVSHFLILFVHUYLFHVLQFOXGLQJSROLFH VHUYLFHV SURYLGHG E\ WKH 6DQ %HUQDUGLQR 6KHULII¶V 'HSDUWPHQW )LUH VHUYLFHV DUH SURYLGHG E\ WKH 5DQFKR &XFDPRQJD)LUH3URWHFWLRQ'LVWULFWDOHJDOO\VHSDUDWHHQWLW\EXWDUHLQFOXGHGZLWKLQWKH&LW\¶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• 5DQFKR&XFDPRQJD3XEOLF,PSURYHPHQW&RUSRUDWLRQ(VWDEOLVKHGWRVXSSRUWWKH&LW\ILQDQFLDOO\WKURXJKWKH ILQDQFLQJDFTXLVLWLRQFRQVWUXFWLRQLPSURYHPHQWDQGOHDVLQJRISXEOLFLPSURYHPHQWVIRUWKHEHQHILWRIWKH &LW\ VUHVLGHQWVDQGWKHVXUURXQGLQJDUHD  • 5DQFKR&XFDPRQJD)LUH3URWHFWLRQ'LVWULFW(VWDEOLVKHGLQ-XO\DIWHUWUDQVLWLRQLQJIURPWKH&RXQW\RI 6DQ%HUQDUGLQRWKH)LUH'LVWULFWSURYLGHVHVVHQWLDOILUHVXSSUHVVLRQDQGSURWHFWLRQVHUYLFHVWRWKH&LW\  • 5DQFKR&XFDPRQJD/LEUDU\6HSDUDWHGIURPWKH6DQ%HUQDUGLQR&RXQW\/LEUDU\6\VWHPDQG%HFDPHSDUWRI WKH&LW\LQ-XO\7KHOLEUDU\IRFXVHVRQHQULFKLQJWKHFRPPXQLW\E\SURYLGLQJDFFHVVWRDEOHQGRI WUDGLWLRQDODQGLQQRYDWLYHUHVRXUFHVSURPRWLQJHGXFDWLRQDQGUHDGLQJDQGRIIHULQJDZHOFRPLQJHQYLURQPHQW ZLWKDVHUYLFHRULHQWHGVWDII  • 5DQFKR&XFDPRQJD3XEOLF)LQDQFLQJ$XWKRULW\)RUPHGWRDVVLVWLQWKHILQDQFLQJDQGUHILQDQFLQJRIWKH FRQVWUXFWLRQH[SDQVLRQXSJUDGHDQGLPSURYHPHQWRISXEOLFFDSLWDOIDFLOLWLHV7KLVVXSSRUWVWKHUHKDELOLWDWLRQ DQGGHYHORSPHQWRIUHVLGHQWLDODQGHFRQRPLFSURMHFWVZLWKLQWKH&LW\  • 5DQFKR&XFDPRQJD(,)'3XEOLF)LQDQFLQJ$XWKRULW\$FWVDVWKHJRYHUQLQJERDUGIRUWKH5DQFKR&XFDPRQJD (QKDQFHG,QIUDVWUXFWXUH)LQDQFLQJ'LVWULFW (,)' ZKLFKZDVFUHDWHGWRILQDQFHVLJQLILFDQWSXEOLFIDFLOLWLHVDQG SURMHFWVWKDWEHQHILWWKHFRPPXQLW\DWODUJH  7KH IRUPHU 5HGHYHORSPHQW $JHQF\ RI WKH &LW\ RI 5DQFKR &XFDPRQJD 5'$ ZDVGLVVROYHGRQ )HEUXDU\8SRQGLVVROXWLRQWKHDVVHWVDQGOLDELOLWLHVRIWKH5'$ZHUHWUDQVIHUUHGWRWKH6XFFHVVRU$JHQF\ RIWKH5'$7KH&LW\LVREOLJDWHGWRUHSRUWWKHUHVRXUFHVDQGDFWLYLWLHVRIWKH6XFFHVVRU$JHQF\LQDVHSDUDWH 3ULYDWH3XUSRVH7UXVW)XQGZKLFKLVDOVRLQFOXGHGLQWKHVHILQDQFLDOVWDWHPHQWV ii  $GGLWLRQDOLQIRUPDWLRQRQDOOWKHVHDJHQFLHVFDQEHIRXQGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWV  Local Economy  7KHORFDOHFRQRP\RIWKH&LW\LVFKDUDFWHUL]HGE\DGLYHUVHPL[RILQGXVWULHVLQFOXGLQJOLJKWPDQXIDFWXULQJDQG GLVWULEXWLRQDQGUHWDLOEXVLQHVVZKLFKHPSKDVL]HVWKH&LW\¶VHIIRUWVDWDWWUDFWLQJDQGUHWDLQLQJVDOHVWD[JHQHUDWLQJ EXVLQHVVHVWRKHOSSURYLGHDVWDEOHILQDQFLDOEDVHDQGDUHODWLYHO\VWDEOHMREPDUNHW7KH&LW\LVKRPHWRVHYHUDO ZHOONQRZQFRPSDQLHVWKDWFRQWULEXWHVLJQLILFDQWO\WRWKHORFDOHFRQRP\DQGRIIHUYDULRXVHPSOR\PHQWRSSRUWXQLWLHV WRWKHUHVLGHQWV  7KH&LW\FRXOGEHFRQVLGHUHGD³EHGURRPFRPPXQLW\´GXHWRWKHVSUDZOLQJVXEXUEDQGHYHORSPHQWWKDWWRRNSODFH GXULQJ WKH  DQG V KRZHYHU XQOLNH RWKHU FRPPXQLWLHV RI WKLV VWDWXV GXH WR SRVWSURSRVLWLRQ LQFRUSRUDWLRQ5DQFKR&XFDPRQJDUHFHLYHVDVPDOOHUSURSHUW\WD[VKDUHWKDQWKH5DQFKR&XFDPRQJD)LUH 3URWHFWLRQ'LVWULFWDQGQHLJKERULQJFLWLHVDERXWFHQWVIRUHYHU\GROODU7KXVUHYHQXHGLYHUVLILFDWLRQEH\RQG SURSHUW\DQGVDOHVWD[ZKLFKFRPSULVHDVXEVWDQWLDOVKDUHRIWKH&LW\¶VJHQHUDOUHYHQXHEXGJHWLVERWKLPSRUWDQW DQGQHFHVVDU\:KLOHSURSHUW\WD[LVDVWDEOHUHYHQXHVRXUFHIRUWKH&LW\VDOHVWD[FDQYDU\GHSHQGLQJRQ FRQVXPHUDQGHFRQRPLFF\FOHV2WKHUVLJQLILFDQWUHYHQXHVRXUFHVIRUWKH&LW\LQFOXGHIUDQFKLVHIHHVDQGWUDQVLHQW RFFXSDQF\WD[HV  7KHFRPPHUFLDOVHFWLRQRIWKH&LW\LVDQFKRUHGE\9LFWRULD*DUGHQVZKHUHDSSUR[LPDWHO\DILIWKRIWKH&LW\¶VWRWDO VDOHVWD[UHYHQXHLVJHQHUDWHGHDFKILVFDO\HDU7HQDQWVLQFOXGH0DF\¶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¶VXQHPSOR\PHQWUDWHGHFOLQHGE\IURPWKHSHDNRI WRE\7KHSDQGHPLFGLVUXSWHGWKDWWUHQGDQGEULHIO\FDXVHGXQHPSOR\PHQWWRVSLNHLQWR 7KHFXUUHQWXQHPSOR\PHQWUDWHKDVGURSSHGWRDVRI-XQHDQGDVRI'HFHPEHUZKLFK LVZLWKLQWKHWUDGLWLRQDOPHDVXUHRIXQHPSOR\PHQW iii  7KHORFDOKRXVLQJPDUNHWKDVGLVSOD\HGUHVLOLHQFHLQWKHIDFHRIVKLIWLQJHFRQRPLFFRQGLWLRQV'HVSLWHDFRQWUDFWLRQ LQVDOHVYROXPHVPHGLDQKRPHSULFHVKDYHGHPRQVWUDWHGVWDELOLW\ZLWKKRPHSULFHVOHYHOLQJRXW7KHPHGLDQKRPH SULFHURVHGHFUHDVHGVOLJKWO\E\LQWKHIRXUWKTXDUWHURILQGLFDWLQJVXVWDLQHGPDUNHWYDOXH7KLVUHFHQW LQFUHPHQWLVQRWDEO\OHVVWKDQWKHVLJQLILFDQWVXUJHLQPHGLDQKRPHSULFHVGXULQJWKHVHFRQGDQGWKLUGTXDUWHUVRI <HWLWUHIOHFWVDPDUNHWWKDWFRQWLQXHVWRDWWUDFWLQYHVWPHQWGHVSLWHWKHEURDGHUHFRQRPLFFKDOOHQJHRIULVLQJ PRUWJDJHUDWHV  Long-term financial planning  7KH&LW\SUHSDUHVUHYHQXHDQGH[SHQGLWXUHSURMHFWLRQVDVSDUWRIWKHDQQXDOEXGJHWZKLFKLVDQLQWHJUDOSDUWRIWKH &LW\¶VEXGJHWSURFHVV&LW\VWDIIXVLQJKLVWRULFDOLQIRUPDWLRQH[SHUWDQDO\VLVDQGGDWDFROOHFWHGIURPWKHVWDWH ORFDODQGSURIHVVLRQDORUJDQL]DWLRQVJHQHUDWHVDQRYHUDOOSLFWXUHRIWKHHFRQRPLFVWDWXVRIWKHORFDOFRPPXQLW\ &LW\EXGJHWVWDIIWKHQSURGXFHDILQDQFLDOO\FRQVHUYDWLYHIRUHFDVWRIWKHQHDUIXWXUH&RQFXUUHQWZLWKWKHQHDUWHUP UHYHQXHSURMHFWLRQV&LW\EXGJHWVWDIIXWLOL]HWKHVDPHGDWDDQGLQIRUPDWLRQWRPDLQWDLQDUXQQLQJILYH\HDUHVWLPDWH WRKHOSJXLGH5DQFKR&XFDPRQJD¶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¶VILQDQFLDOSROLF\UHTXLUHVDGRSWLQJDEDODQFHGRSHUDWLQJEXGJHWHDFK\HDU$EDODQFHGEXGJHWPHDQVWKDW H[SHQGLWXUHVDUHHTXDOWRRUOHVVWKDQWKHEXGJHWHGUHYHQXHVDQGDYDLODEOHIXQGEDODQFH$Q\RQHWLPHUHYHQXHV UHFHLYHGDUHWREHXVHGIRURQHWLPHFRVWV$Q\IXQGEDODQFHUHVHUYHVDUHXVHGIRUQRQUHFXUULQJH[SHQGLWXUHV VXFKDVFDSLWDOSURMHFWVEXWQRWIRURQJRLQJRSHUDWLRQV7KHRQO\H[FHSWLRQWRWKDWSROLF\LVWKHXVHRIUHVHUYHVIRU FKDQJHVLQHFRQRPLFFLUFXPVWDQFHVZKLFKWKH&LW\¶VIXQGEDODQFHSROLF\JRYHUQVLWVXVDJH  $GHTXDWHIXQGEDODQFHRUUHVHUYHOHYHOVDUHQHFHVVDU\IRUWKH&LW\¶VRYHUDOOILQDQFLDOPDQDJHPHQWVWUDWHJ\,WLV WKH&LW\&RXQFLO VUHVSRQVLELOLW\WRPDLQWDLQDVXIILFLHQWOHYHORIUHVHUYHIXQGVWRSURYLGHIRUWKHRUGHUO\SURYLVLRQRI VHUYLFHVWRWKHFLWL]HQVRIWKH&LW\RI5DQFKR&XFDPRQJD7KH&LW\&RXQFLOFDQGHFLGHWKHFLUFXPVWDQFHVXQGHU ZKLFK WKH UHVHUYHV FDQ EH XVHG )URP WLPH WR WLPH WKH &LW\ 0DQDJHU DQG WKH )LQDQFH 'LUHFWRU PD\ PDNH UHFRPPHQGDWLRQVDVWRWKHOHYHORIUHVHUYHIXQGVQHFHVVDU\IRUSUXGHQWILVFDOPDQDJHPHQW5HVHUYHOHYHOVVKDOO EHUHYLHZHGDWOHDVWDQQXDOO\GXULQJWKHEXGJHWSURFHVVWRHQVXUHWKDWWKH\DUHFRQVLVWHQWZLWKWKHFRQGLWLRQVIDFHG E\WKH&LW\  7KH&LW\UHFHLYHGWKH*)2$'LVWLQJXLVKHG%XGJHW3UHVHQWDWLRQ$ZDUGIRUWKH)LVFDO<HDUEXGJHW7KLV UHFRJQLWLRQUHTXLUHVWKH&LW\ VEXGJHWWRVHUYHDVDQH[HPSODU\SROLF\GRFXPHQWRSHUDWLRQVJXLGHILQDQFLDOSODQ DQGFRPPXQLFDWLRQWRROIXOILOOLQJDOOWKHQHFHVVDU\FULWHULDVHWIRUWKE\WKH*)2$SURJUDP  iv  0DMRULQLWLDWLYHVDQGFDSLWDOSURMHFWV  • &XFDPRQJD&DQ\RQ7UDLOKHDG±6HYHUDO\HDUVDJRWKH)LUH'LVWULFWDFTXLUHGDYDFDQWDFUHSDUFHORII6N\OLQH 'ULYHWRSURYLGHDVDIHWUDLOKHDGZLWKOHJDODFFHVVIRUKLNHUVLQWR&XFDPRQJD&DQ\RQZKLFKLVPDQDJHGE\ WKH8QLWHG6WDWHV)RUHVW6HUYLFH8QWLOWKLVSDUFHOZDVDFTXLUHGKLNHUVW\SLFDOO\DFFHVVHGWKH&DQ\RQWKURXJK DUHVLGHQWLDOQHLJKERUKRRGRULOOHJDOO\WUHVSDVVHGWKURXJKSULYDWHSURSHUW\6XEVHTXHQWO\WKURXJKDIHGHUDO JUDQWIURP&RQJUHVVPDQ$JXLODUWKH&LW\UHFHLYHG0WRLPSURYHWKHDFUHSURSHUW\LQFOXGLQJDPRQXPHQW WRWKHRULJLQDORZQHUVWKHKLVWRU\RIWKHDUHDEHQFKHVDQGVHDWLQJDUHDVDVKDGHVWUXFWXUHZDWHUIRXQWDLQ DQGVWRUDJHIRUDORFDOQRQSURILWWKDWKHOSVFOHDQXSWKHDUHDDQGSURYLGHVHUYLFHVWRUHFUHDWLRQDOXVHUV3KDVH RIWKLVSURMHFWLQYROYHVDFTXLVLWLRQRIDGGLWLRQDORSHQVSDFHDFUHDJHLPPHGLDWHO\DGMDFHQWWRWKHSURSHUW\ ZKLFKWKH&LW\LVLQWKHSURFHVVRIQHJRWLDWLQJIRUDWWKHSUHVHQWWLPH  • :LOGILUH(DUO\'HWHFWLRQ6\VWHP±,QVWDOODWLRQRIDFDPHUDHDUO\ZLOGILUHGHWHFWLRQV\VWHPDORQJWKH&LW\¶V QRUWKHUQERXQGDU\ZLOOSURYLGHUDSLGGHWHFWLRQUHSRUWLQJDQGUHVSRQVHWRZLOGILUHV7KLVLQQRYDWLYHILUVWRILWV NLQGSURJUDPZDVIXQGHGIURPD0JUDQWIURPWKH6WDWHRI&DOLIRUQLDDQGFDQGHWHFWILUHVWDUWVGRZQWRDQ DUHDDVVPDOODVIHHW$OWKRXJKWKLVLVWKHLQLWLDOSKDVHWKHWHFKQRORJ\LVZHOOSURYHQDQGPD\XOWLPDWHO\ H[SDQGWRFRYHUWKHHQWLUHIURQWFRXQWU\IURP/RV$QJHOHV&RXQW\WKURXJK6DQ%HUQDUGLQR&RXQW\  • 7KH:HVW6LGH/LEUDU\([SDQVLRQ3URMHFWLQYROYHVDPLOOLRQUHQRYDWLRQRIWKH/LRQV&HQWHU(DVWDQG:HVW WUDQVIRUPLQJWKHVHH[LVWLQJIDFLOLWLHVLQWRDPRGHUQOLEUDU\7KHVHFHQWHUVZKLFKRQFHKRVWHGWKH&LW\¶VLQLWLDO OLEUDU\VHUYLFHVZLOOEHXSJUDGHGWRLQFOXGHQHZFRPPXQLW\PHHWLQJDUHDVVSDFHIRUWKHH[SDQGLQJ/LEUDU\RI 7KLQJVDQGRXWGRRUDUHDVIRUODUJHHYHQWV7KHSURMHFWZLOOUHWURILWLQIUDVWUXFWXUHWRPHHWFXUUHQWHQHUJ\HIILFLHQW VWDQGDUGVZKLFKZLOOKHOSUHGXFHFRVWVDQGLPSURYHFRPIRUW+DOIRIWKHIXQGLQJIRUWKLVVLJQLILFDQWFRPPXQLW\ LQYHVWPHQWFRPHVIURPDPLOOLRQ,QIUDVWUXFWXUH*UDQWIURPWKH&DOLIRUQLD6WDWH/LEUDU\  • 0HPRULDO3DUNDW6WDWLRQ 3KDVH ±7KH0HPRULDO3DUNZLOOEHORFDWHGRQWKHVRXWKHUQVHFWLRQ RIWKHQHZ)LUH6WDWLRQSURSHUW\DQGLVDSSUR[LPDWHO\DFUHV7KH0SURMHFWZLOOFUHDWHDSDUNWKDW ZLOOLQFOXGHDUWLIDFWVIURP:RUOG7UDGH&HQWHU3$*(%XLOGLQJ)OLJKWDQGWKH3HQWDJRQ7KHDUWLIDFWV KDYHEHHQOLQNHGWRJHWKHUZLWKDFDQRSLHGZDONLQJSDWKDQGDFHQWUDOJDWKHULQJVSDFH$GGLWLRQDOHOHPHQWV LQFOXGHDORFDO*ROG6WDU6HUYLFH0HPEHUPHPRULDOZDOOEHQFKHVIRUUHIOHFWLRQJDUGHQDUHDVDQGJDWKHULQJ VSDFHV7KLVSURMHFWLVIXQGHGWKURXJKD6WDWHEXGJHWHDUPDUNIURP$VVHPEO\PHPEHU(ORLVH*RPH]5H\HV  Awards and acknowledgments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v  ,QFORVLQJDQH[SUHVVLRQRIDSSUHFLDWLRQIRUWKH&LW\&RXQFLOIRUWKHLUOHDGHUVKLSDQGVXSSRUWDQGWKHLUFRQWLQXLQJ HIIRUWVWRPDLQWDLQWKH&LW\¶VILVFDOKHDOWK  5HVSHFWIXOO\VXEPLWWHG     -RKQ5*LOOLVRQ-HYLQ.D\H &LW\0DQDJHU)LQDQFH'LUHFWRU vi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vii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viii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO ix THIS PAGE INTENTIONALLY LEFT BLANK  &LW\RI5DQFKR&XFDPRQJD  $QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUW  -XQH    )LQDQFLDO6HFWLRQ  THIS PAGE INTENTIONALLY LEFT BLANK                                                           /6/&3$6&20 ,1'(3(1'(17$8',7256¶5(3257  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5DQFKR&XFDPRQJD&DOLIRUQLD  5HSRUWRQWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV  Opinions  :HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SHDFWLYLWLHV HDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\RI5DQFKR&XFDPRQJD&DOLIRUQLD WKH³&LW\´ DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFK FROOHFWLYHO\FRPSULVHWKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKHWDEOHRIFRQWHQWV  ,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWVWKHUHVSHFWLYH ILQDQFLDOSRVLWLRQRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SHDFWLYLWLHVHDFKPDMRUIXQGDQGWKHDJJUHJDWH UHPDLQLQJIXQGLQIRUPDWLRQRIWKH&LW\DVRI-XQHDQGWKHUHVSHFWLYHFKDQJHVLQILQDQFLDOSRVLWLRQDQG ZKHUHDSSOLFDEOHFDVKIORZVWKHUHRIIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\ DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD  Basis for Opinions  :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ *RYHUQPHQW $XGLWLQJ 6WDQGDUGV LVVXHG E\ WKH &RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV2XUUHVSRQVLELOLWLHVXQGHUWKRVHVWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH $XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWVVHFWLRQRIRXUUHSRUW:HDUHUHTXLUHGWREH LQGHSHQGHQWRIWKH&LW\DQGWRPHHWRXURWKHUHWKLFDOUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHUHOHYDQWHWKLFDO UHTXLUHPHQWVUHODWLQJWRRXUDXGLW:HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWH WRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQV  Responsibilities of Management for the Financial Statements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¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRU WZHOYHPRQWKVEH\RQGWKHILQDQFLDOVWDWHPHQWGDWHLQFOXGLQJDQ\FXUUHQWO\NQRZQLQIRUPDWLRQWKDWPD\UDLVH VXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5DQFKR&XFDPRQJD&DOLIRUQLD Auditor’s Responsibilities for the Audit of the Financial Statements  2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶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• ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW  • ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRU HUURU DQG GHVLJQ DQG SHUIRUP DXGLW SURFHGXUHV UHVSRQVLYH WR WKRVH ULVNV 6XFK SURFHGXUHV LQFOXGH H[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDOVWDWHPHQWV  • 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUH DSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRI WKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG  • (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIVLJQLILFDQWDFFRXQWLQJ HVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKHILQDQFLDOVWDWHPHQWV  • &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVH VXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOHSHULRGRIWLPH  :HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKHSODQQHG VFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUVWKDWZHLGHQWLILHG GXULQJWKHDXGLW  Required Supplementary Information  $FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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¶VUHVSRQVHVWRRXU LQTXLULHVWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJHZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDO VWDWHPHQWV:HGRQRWH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVHWKHOLPLWHG SURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH 2  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI5DQFKR&XFDPRQJD&DOLIRUQLD Supplementary Information  2XUDXGLWZDVFRQGXFWHGIRUWKHSXUSRVHRIIRUPLQJRSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVWKDWFROOHFWLYHO\FRPSULVH WKH&LW\¶VEDVLFILQDQFLDOVWDWHPHQWV7KHDFFRPSDQ\LQJFRPELQLQJDQGLQGLYLGXDOIXQGILQDQFLDOVWDWHPHQWVDQG VFKHGXOHV ³VXSSOHPHQWDU\LQIRUPDWLRQ´ DUHSUHVHQWHGIRUSXUSRVHVRIDGGLWLRQDODQDO\VLVDQGDUHQRWDUHTXLUHG SDUWRIWKHEDVLFILQDQFLDOVWDWHPHQWV6XFKLQIRUPDWLRQLVWKHUHVSRQVLELOLW\RIPDQDJHPHQWDQGZDVGHULYHGIURP DQGUHODWHVGLUHFWO\WRWKHXQGHUO\LQJDFFRXQWLQJDQGRWKHUUHFRUGVXVHGWRSUHSDUHWKHEDVLFILQDQFLDOVWDWHPHQWV 7KHLQIRUPDWLRQKDVEHHQVXEMHFWHGWRWKHDXGLWLQJSURFHGXUHVDSSOLHGLQWKHDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV DQGFHUWDLQDGGLWLRQDOSURFHGXUHVLQFOXGLQJFRPSDULQJDQGUHFRQFLOLQJVXFKLQIRUPDWLRQGLUHFWO\WRWKHXQGHUO\LQJ DFFRXQWLQJDQGRWKHUUHFRUGVXVHGWRSUHSDUHWKHEDVLFILQDQFLDOVWDWHPHQWVRUWRWKHEDVLFILQDQFLDOVWDWHPHQWV WKHPVHOYHVDQGRWKHUDGGLWLRQDOSURFHGXUHVLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH 8QLWHG6WDWHVRI$PHULFD,QRXURSLQLRQWKHVXSSOHPHQWDU\LQIRUPDWLRQLVIDLUO\VWDWHGLQDOOPDWHULDOUHVSHFWVLQ UHODWLRQWRWKHEDVLFILQDQFLDOVWDWHPHQWVDVDZKROH  Other Information  0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQFRPSULVHV WKHLQWURGXFWRU\DQGVWDWLVWLFDOVHFWLRQVEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRXUDXGLWRU¶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overnment Auditing Standards  ,QDFFRUGDQFHZLWK*RYHUQPHQW$XGLWLQJ6WDQGDUGVZHKDYHDOVRLVVXHGRXUUHSRUWGDWHG0DUFKRQRXU FRQVLGHUDWLRQRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGRQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQ SURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWVDQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLV VROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWV RIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJ RURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWK*RYHUQPHQW$XGLWLQJ 6WDQGDUGVLQFRQVLGHULQJWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH   ,UYLQH&DOLIRUQLD 0DUFK 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 0DQDJHPHQW V'LVFXVVLRQDQG$QDO\VLV  7KLVVHFWLRQRIWKH$QQXDO&RPSUHKHQVLYH)LQDQFLDO5HSRUWRIWKH&LW\RI5DQFKR&XFDPRQJD &LW\ SUHVHQWVD QDUUDWLYHRYHUYLHZDQGGLVFXVVLRQRIWKH&LW\ VILQDQFLDODFWLYLWLHVIRUWKHILVFDO\HDUHQGHG-XQH7KLV GLVFXVVLRQDQGDQDO\VLVVKRXOGEHUHDGLQFRQMXQFWLRQZLWKWKHEDVLFILQDQFLDOVWDWHPHQWVDQGDFFRPSDQ\LQJQRWHV WRWKHILQDQFLDOVWDWHPHQWV7KHLQIRUPDWLRQDQGWKHGLVFXVVLRQVVKRXOGSURYLGHUHDGHUVZLWKDFOHDUSLFWXUHRIWKH &LW\ VRYHUDOOILQDQFLDOFRQGLWLRQ  )LQDQFLDO+LJKOLJKWV  • $WWKHFORVHRIWKHILVFDO\HDUWKH&LW\¶VDVVHWVDQGGHIHUUHGRXWIORZVRIUHVRXUFHVH[FHHGHGOLDELOLWLHVDQG GHIHUUHG LQIORZV RI UHVRXUFHV E\  UHIOHFWLQJ DQLQFUHDVH LQ QHW SRVLWLRQ RI  FRPSDUHGWRWKHSULRU\HDU7KHWRWDOQHWSRVLWLRQFRQVLVWHGRIDVQHWLQYHVWPHQWLQFDSLWDODVVHWV DVUHVWULFWHGDQGDVXQUHVWULFWHG  • 7KHWRWDOFKDQJHLQQHWSRVLWLRQDPRXQWLQJWRLVFRPSULVHGRIIURPJRYHUQPHQWDO DFWLYLWLHVDQGIURPEXVLQHVVW\SHDFWLYLWLHV  • $WWKHFORVHRIWKHILVFDO\HDUWKH&LW\ VJRYHUQPHQWDOIXQGVUHSRUWHGFRPELQHGHQGLQJIXQGEDODQFHVRI DQLQFUHDVHRIFRPSDUHGWRWKHSULRUILVFDO\HDU7KLVFRPELQHGHQGLQJIXQG EDODQFHVFRQVLVWHGRIDVQRQVSHQGDEOHDVUHVWULFWHGDVFRPPLWWHG DVDVVLJQHGDQGDGHILFLWRIDVXQDVVLJQHG  • $WWKHHQGRIWKHILVFDO\HDUWKH*HQHUDO)XQGUHSRUWHGDIXQGEDODQFHRIDQLQFUHDVHRI  FRPSDUHG WR WKH SULRU ILVFDO \HDU 7KH *HQHUDO )XQG¶V HQGLQJ IXQG EDODQFH FRQVLVWHG RI DVQRQVSHQGDEOHDVUHVWULFWHGDVFRPPLWWHGDQGDV DVVLJQHG  •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tatement of Net PositionSUHVHQWVLQIRUPDWLRQRQWKH&LW\ VDVVHWVOLDELOLWLHVDQGGHIHUUHGRXWIORZVDQGLQIORZV RIUHVRXUFHVZLWKWKHGLIIHUHQFHUHSRUWHGDVQHWSRVLWLRQ2YHUWLPHLQFUHDVHVRUGHFUHDVHVLQQHWSRVLWLRQPD\ LQGLFDWHZKHWKHUWKH&LW\ VILQDQFLDOSRVLWLRQLVLPSURYLQJRUGHWHULRUDWLQJ  7KHStatement of Activities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governmental activities IURPRWKHUIXQFWLRQVWKDWDUHLQWHQGHGWRUHFRYHUDOORUD SRUWLRQRIWKHLUFRVWVWKURXJKXVHUIHHVDQGFKDUJHV business-type activities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overnmental fundsDUHXVHGWRDFFRXQWIRUHVVHQWLDOO\WKHVDPHIXQFWLRQVUHSRUWHGDVgovernmental activitiesLQ WKHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV+RZHYHUXQOLNHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVJRYHUQPHQWDO IXQGV ILQDQFLDO VWDWHPHQWV IRFXV RQnear-term inflows DQGoutflows of spendable resources DQGbalances of spendable resourcesDYDLODEOHDWWKHHQGRIWKHILVFDO\HDU6XFKLQIRUPDWLRQPD\KHOSGHWHUPLQHZKDWILQDQFLDO UHVRXUFHVDUHDYDLODEOHLQWKHQHDUIXWXUHWRILQDQFHWKH&LW\ VSURJUDPV  7KHJRYHUQPHQWDOIXQGVILQDQFLDOVWDWHPHQWVDUHFRPSULVHGRIWKHBalance SheetDQGWKHStatement of Revenues, Expenditures, and Changes in Fund Balances%RWKRIWKHVHVWDWHPHQWVZHUHSUHSDUHGXVLQJWKHFXUUHQWILQDQFLDO UHVRXUFHVPHDVXUHPHQWIRFXVDQGWKHPRGLILHGDFFUXDOEDVLVRIDFFRXQWLQJ  7KHBudgetary Basis Statement of Revenues, Expenditures and Changes in Fund Balance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governmental fundsDQGgovernmental activities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combining statements and schedules  Proprietary fundsDUHJHQHUDOO\XVHGWRDFFRXQWIRUVHUYLFHVIRUZKLFKWKH&LW\FKDUJHVFXVWRPHUV±RXWVLGH FXVWRPHUVRURWKHUGHSDUWPHQWVIXQGVRIWKH&LW\7KHSURSULHWDU\IXQGVILQDQFLDOVWDWHPHQWVSURYLGHWKHVDPHW\SH RILQIRUPDWLRQDVVKRZQLQWKHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVRQO\LQPRUHGHWDLO7KH&LW\PDLQWDLQVWKH IROORZLQJW\SHVRISURSULHWDU\IXQGV  •Enterprise funds UHSRUW WKH IXQFWLRQV SUHVHQWHG DV EXVLQHVVW\SH DFWLYLWLHV LQJRYHUQPHQWZLGH ILQDQFLDO VWDWHPHQWV7KH6SRUWV&RPSOH[0XQLFLSDO8WLOLW\DQG)LEHU2SWLF1HWZRUNHQWHUSULVHIXQGVDUHPDMRUIXQGV 7KH6HFRQG6WRU\/LEUDU\DQG%H\RQGHQWHUSULVHIXQGLVDQRQPDMRUHQWHUSULVHIXQG 6 •Internal service fundsUHSRUWWKHFRVWVDOORFDWHGLQWHUQDOO\DPRQJVWWKH&LW\ VIXQFWLRQV7KH&LW\XVHVLQWHUQDO VHUYLFH IXQGV WR DFFRXQW IRU (TXLSPHQW DQG 9HKLFOH 5HSODFHPHQWDQG &RPSXWHU (TXLSPHQW7HFKQRORJ\ 5HSODFHPHQWZKLFKDUHSUHVHQWHGDVJRYHUQPHQWDODFWLYLWLHVLQWKHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV  Fiduciary funds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• &DVKDQGLQYHVWPHQWVLQFUHDVHGE\RU7KLVJURZWKLQFOXGHVLQFUHDVHVRI IURPJRYHUQPHQWDODFWLYLWLHVDQGIURPEXVLQHVVW\SHDFWLYLWLHV7KHLQFUHDVHSULPDULO\UHVXOWVIURP KLJKHUFDVKLQIORZVGXHWRPRGHVWUHYHQXHJURZWKDQGORZHUFDVKRXWIORZVGXHWRH[SHQVHPDQDJHPHQWGXULQJ WKHFXUUHQWILVFDO\HDU1RWDEO\WKHPDMRULW\RIWKHJURZWKLQFDVKDQGLQYHVWPHQWVLVDWWULEXWHGWRWKHLQFUHDVH LQWKH*HQHUDO)XQGE\'HYHORSPHQW,PSDFW)HHVE\2WKHU*RYHUQPHQWDO)XQGV E\DQG)LUH'LVWULFWE\  • $FFRXQWV UHFHLYDEOH QHW RI DOORZDQFHV GHFUHDVHG E\  RU  7KLV UHGXFWLRQ LQFOXGHV GHFUHDVHVRIIRUJRYHUQPHQWDODFWLYLWLHVDQGIRUEXVLQHVVW\SHDFWLYLWLHV7KHPDLQIDFWRU EHKLQGWKLVUHGXFWLRQZDVWKHSD\PHQWUHFHLYHGE\WKH6DQ%HUQDUGLQR&RXQW\7UDQVSRUWDWLRQ$XWKRULW\ IXOILOOLQJWKH&LW\ VUHLPEXUVHPHQWUHTXHVWRIPLOOLRQIURPWKHSUHYLRXVILVFDO\HDU  • 1RWHVDQGORDQVUHFHLYDEOHLQFUHDVHGE\RU7KLVILVFDO\HDURQO\JRYHUQPHQWDODFWLYLWLHV UHSRUWQRWHVDQGORDQVUHFHLYDEOH7KHLQFUHDVHLVGXHWRDFFUXHGLQWHUHVWRQORDQVSURYLGHGIRUORZDQG PRGHUDWHLQFRPHKRXVLQJSURMHFWV)XUWKHUGHWDLOVRQWKLVDUHSURYLGHGLQWKH+RXVLQJ6XFFHVVRU$JHQF\ DQDO\VLVVHFWLRQRIWKH0DQDJHPHQW V'LVFXVVLRQDQG$QDO\VLVRU1RWHLQWKHQRWHVWRWKHILQDQFLDOVWDWHPHQWV  • *UDQWVUHFHLYDEOHGHFUHDVHGE\RU7KLVILVFDO\HDURQO\JRYHUQPHQWDODFWLYLWLHVUHSRUW JUDQWVUHFHLYDEOH7KHPDMRULW\RIWKLVGHFUHDVHLVGXHWRWKHUHYHUVDORISULRU\HDUGHIHUUHGUHYHQXHUHFRUGHG LQWKH6WDWH*UDQWVVSHFLDOUHYHQXHIXQGSDUWLFXODUO\DPLOOLRQUHLPEXUVDEOHJUDQWIURPWKH6WDWHRI &DOLIRUQLDDOORFDWHGIRUWKH&LW\ VFRPPXQLW\GRJSDUNSURMHFW  •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• $FFRXQWV SD\DEOH GHFUHDVHG E\  RU  7KLV UHGXFWLRQ LQFOXGHV GHFUHDVHV RI  IRU JRYHUQPHQWDODFWLYLWLHVDQGIRUEXVLQHVVW\SHDFWLYLWLHV6XFKFKDQJHVDUHW\SLFDOO\DWWULEXWHGWRWKH WLPLQJRIWKH&LW\ VSD\PHQWVWRYHQGRUVIRUJRRGVDQGVXSSOLHVZKLFKFDQIOXFWXDWHIURPRQHILVFDO\HDUWR DQRWKHU 8 •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•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•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• )UDQFKLVHIHHVHVVHQWLDOO\DIRUPRIVWDWXWRU\UHQWSDLGE\IUDQFKLVHHVIRUXWLOL]LQJFLW\LQIUDVWUXFWXUHFRPH IURPVRXUFHVVXFKDVJDVHOHFWULFLW\FDEOHDQGUHIXVHVHUYLFHV7KLV\HDUIUDQFKLVHIHHVVDZDQLQFUHDVHRI RUFRPSDUHGWRWKHSULRU\HDU7KHSULPDU\UHDVRQIRUWKLVULVHLVWKHKLJKHUJURVVVDOHVIURP JDVDQGHOHFWULFIUDQFKLVHVGULYHQE\LQIODWLRQDU\SUHVVXUHVRQFRPPRGLW\SULFHVGXULQJWKHILVFDO\HDU  •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overnmental Funds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± 7&(3   6WDWH *UDQWV   &RPPXQLW\ )DFLOLWLHV 'LVWULFW  6WUHHW   DQG &RPPXQLW\)DFLOLWLHV'LVWULFW,QGXVWULDO  7KHGHILFLWVIRUWKH3HGHVWULDQ*UDQW/LWWHU5HGXFWLRQ*UDQW 6%±7&(3DQG6WDWH*UDQWVZLOOEHUHVROYHGXSRQUHFHLSWRIIXQGVIURPJUDQWLQJDJHQFLHV7KHGHILFLWVIRUWKH &RPPXQLW\)DFLOLWLHV'LVWULFW6WUHHWDQG&RPPXQLW\)DFLOLWLHV'LVWULFW,QGXVWULDOIXQGVZLOOEH UHVROYHGZLWKWKHWUDQVIHURIUHFHLSWVIURPWKH&)'(PSLUH/DNHVLQWKHQH[WILVFDO\HDU/DVWO\WKH/LJKWLQJ 'LVWULFWV)XQGVSHFLDOUHYHQXHIXQGUHSRUWVDGHILFLWIXQGEDODQFHGXHWRLQWHUIXQGDGYDQFHVUHFHLYHGIURPWKH&LW\ IRUWKHSXUFKDVHDQGUHWURILWRIVWUHHWOLJKWV7KHGHILFLWXQDVVLJQHGIXQGEDODQFHZLOOEHHOLPLQDWHGDVUHSD\PHQWRI WKHLQWHUIXQGDGYDQFHVRFFXUV5HIHUWR1RWHIRUPRUHGHWDLOHGLQIRUPDWLRQRQWKH&LW\ VLQWHUIXQGDGYDQFHV  7RWDOUHYHQXHVRIJRYHUQPHQWDOIXQGVZHUHH[SHQVHVZHUHRWKHUILQDQFLQJVRXUFHV ZHUHDQGRWKHUILQDQFLQJXVHVZHUH  7KH*HQHUDO)XQGVHUYHVDVWKHSULPDU\RSHUDWLQJIXQGIRUWKH&LW\$VRI-XQHWKH*HQHUDO)XQG UHSRUWHG DQ DJJUHJDWH IXQG EDODQFH RI  FDWHJRUL]HG DV IROORZV  DV QRQVSHQGDEOHDVUHVWULFWHGDVFRPPLWWHGDQGDVDVVLJQHG)RUDPRUH FRPSUHKHQVLYHXQGHUVWDQGLQJRIWKHVHIXQGEDODQFHFODVVLILFDWLRQVUHIHUWR1RWHLQWKHQRWHVWRWKHILQDQFLDO VWDWHPHQWV 13 7KHIROORZLQJWDEOHSUHVHQWVWKHVXPPDU\RIUHYHQXHVDQGH[SHQGLWXUHVRIWKH*HQHUDO)XQGIRU)LVFDO<HDUV DQG   7KHIROORZLQJLVDVXPPDU\RIWKHVLJQLILFDQWFKDQJHVLQ*HQHUDO)XQGUHYHQXHVH[SHQGLWXUHVDQGRWKHUILQDQFLQJ VRXUFHVDQGXVHV  •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• &KDUJHVIRUVHUYLFHVGHFUHDVHGE\RUSULPDULO\DWWULEXWHGWRIHHVDVVRFLDWHGZLWKSODQ FKHFNVSODQQLQJDQGHQJLQHHULQJIRUGHYHORSPHQWVHUYLFHVDVZHOODVUHYHQXHIURPUHFUHDWLRQDODFWLYLWLHV  • 8VHRIPRQH\DQGSURSHUW\LQFUHDVHGE\RU7KLVJURZWKFDQEHDWWULEXWHGWRKLJKHU\LHOGV RQLQYHVWPHQWVDQGIDYRUDEOHPDUNHWFRQGLWLRQV7KHSULRU\HDU VWHPSRUDU\DGMXVWPHQWRIXQUHDOL]HGJDLQVWR EULQJLQYHVWPHQWVWRWKHLUIDLUYDOXHKDVEHHQUHDOL]HGLQWKLVILVFDO\HDUDPRXQWLQJWR7KLVZDV RIIVHWE\RIXQUHDOL]HGJDLQVLQWKHFXUUHQW\HDUDVUHTXLUHGE\GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools,WLVLPSRUWDQWWRQRWHWKDW DGMXVWPHQWVUHPDLQXQUHDOL]HGXQWLOWKHLQYHVWPHQWVDUHVROGDQGJHQHUDOO\VHFXULWLHVDUHKHOGXQWLOPDWXULW\  • 6XEVFULSWLRQVLVVXHGDPRXQWHGWRUHSUHVHQWLQJDQLQFUHDVHRIRUDWWULEXWDEOH WRDFFRXQWLQJHQWULHVUHODWHGWRWKHDGGLWLRQVRIVXEVFULSWLRQVDVPDQGDWHGE\RIGASB Statement No. 96, Subscription-Based Information Technology Arrangements. 7KLVLQFOXGHVWKHDGGLWLRQRIWKH&LW\¶VQHZ(53 V\VWHP:RUNGD\&ORXG3ODWIRUPDPRXQWLQJWR  • 3XEOLFVDIHW\±SROLFHLQFUHDVHGE\RUIURPWKHSULRUILVFDO\HDUGXHWRLQFUHDVHGSXEOLFVDIHW\ FRQWUDFWFRVWVDQGDGGLWLRQDOSHUVRQQHOZLWKWKH6DQ%HUQDUGLQR&RXQW\6KHULII V'HSDUWPHQW  • &RPPXQLW\'HYHORSPHQWLQFUHDVHGE\RUGXHWRDQLQFUHDVHLQHQWLWOHPHQWDQGSHUPLWWLQJ UHODWHGH[SHQGLWXUHV  •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roprietary Funds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¶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• 7D[HV7KLVUHVXOWHGLQDQHJDWLYHYDULDQFHRISULPDULO\GXHWRORZHUWKDQDQWLFLSDWHGVDOHVWD[ UHYHQXHV  • 8VH RI PRQH\ DQG SURSHUW\ 7KHUH ZDV D SRVLWLYH YDULDQFH RI  ZKLFK LV SULPDULO\ GXH WR DV PHQWLRQHGSUHYLRXVO\WKHSULRU\HDU VWHPSRUDU\DGMXVWPHQWRIXQUHDOL]HGJDLQVWREULQJLQYHVWPHQWVWRWKHLU IDLUYDOXHEHLQJUHDOL]HGLQWKLVILVFDO\HDU  • 'HEW ,VVXDQFH 3URFHHGV 7KHUH ZDV D SRVLWLYH YDULDQFH RI  SULPDULO\ GXH WR WKH DFFRXQWLQJ DGMXVWPHQWVIURPVXEVFULSWLRQVLVVXHGDVVRFLDWHGZLWKWKHGASB Statement No. 96SBITAs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• *HQHUDO*RYHUQPHQW([SHQGLWXUHVZHUHORZHUWKDQWKHILQDOEXGJHWE\SULPDULO\GXHWRVRPH FDSLWDOSURMHFWVEHLQJFDUULHGIRUZDUGWR)<LQVWHDGRISURFHHGLQJDVSODQQHG  • 3XEOLF6DIHW\3ROLFH([SHQGLWXUHVZHUHEHORZWKHILQDOEXGJHWE\SULPDULO\GXHWRFRVWVDYLQJV IURPYDFDQWFRQWUDFWSRVLWLRQVUHVXOWLQJIURPLQMXUHGRUSURPRWHGGHSXWLHVZLWKWKH6DQ%HUQDUGLQR&RXQW\ 6KHULII  • &RPPXQLW\'HYHORSPHQW&RPPXQLW\GHYHORSPHQWH[SHQGLWXUHVVKRZHGDSRVLWLYHYDULDQFHRI EHFDXVHRIVDODU\VDYLQJVIURPERWKIXOOWLPHDQGSDUWWLPHSRVLWLRQVWKDWZHUHEXGJHWHGEXWUHPDLQHGXQILOOHG DVZHOODVVRPHHTXLSPHQWSXUFKDVHVWKDWZHUHUHVFKHGXOHGWRDVXEVHTXHQWILVFDO\HDU  • &RPPXQLW\6HUYLFHV&RPPXQLW\VHUYLFHVH[SHQGLWXUHVVKRZHGDSRVLWLYHYDULDQFHRIGXHWRVDODU\ VDYLQJVIURPERWKIXOOWLPHDQGSDUWWLPHSRVLWLRQVWKDWZHUHEXGJHWHGEXWUHPDLQHGXQILOOHG  • (QJLQHHULQJ DQG 3XEOLF :RUNV ([SHQGLWXUHV ZHUH EHORZ WKH ILQDO EXGJHW E\  PDLQO\ GXH WR HQFXPEUDQFHVWKDWZLOOEHFDUULHGRYHUWR)LVFDO<HDU  • &DSLWDO 2XWOD\ ([SHQGLWXUHV VXUSDVVHG WKH ILQDO EXGJHW E\  SULPDULO\ GXH WR WKH DFFRXQWLQJ DGMXVWPHQWVIURPVXEVFULSWLRQVLVVXHGDVVRFLDWHGZLWKWKHGASB Statement No. 96SBITAs  • 'HEW6HUYLFH([SHQGLWXUHVGLVSOD\DYDULDQFHRISULPDULO\GXHWRWKHDFFRXQWLQJDGMXVWPHQWVIURP VXEVFULSWLRQVLVVXHGDVVRFLDWHGZLWKWKHGASB Statement No. 96SBITAs.  • 7UDQVIHUV2XW7KHYDULDQFHRILVSULPDULO\GXHWRDQHQGRI\HDURSHUDWLRQDOWUDQVIHURIH[FHVVIXQG EDODQFHWRWKH/LEUDU\&DSLWDO5HSODFHPHQW)XQG  &DSLWDO$VVHWVDQG'HEW$GPLQLVWUDWLRQ  Capital Assets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• &RQVWUXFWLRQLQSURJUHVVUHSRUWHGDQHWLQFUHDVHRIFRPSULVLQJDGGLWLRQVRILQFDSLWDO RXWOD\DQGWUDQVIHURIWRYDULRXVFDSLWDODVVHWVSODFHGLQWRVHUYLFHGXULQJWKHFXUUHQWILVFDO\HDU 1RWHZRUWK\SURMHFWVGXULQJWKLVSHULRGLQFOXGH  ¾ )LUH'LVWULFW7RZQ&HQWHU6WDWLRQDGGLWLRQDOH[SHQGLWXUHVRI ¾ :HVW)RRWKLOO%RXOHYDUG6WUHHW,PSURYHPHQWVDGGLWLRQDOH[SHQGLWXUHVIRU ¾ /(' 6SRUWV /LJKW 5HWURILW 3URMHFW  6WDGLXP +HULWDJH 'D\ &UHHN %HU\O DGGLWLRQDO H[SHQGLWXUHV RI  ¾ &LYLF&HQWHU+9$&3ODQW5HSODFHPHQWDGGLWLRQDOH[SHQGLWXUHVRI ¾ 3DXO%LDQH/LEUDU\6HFRQG6WRU\DQG%H\RQGDGGLWLRQDOH[SHQGLWXUHVRIDQGFDSLWDOL]HGWR EXLOGLQJLPSURYHPHQWVIRU ¾ &HQWUDO3DUN'RJ3DUNDGGLWLRQDOH[SHQGLWXUHVRIDQGFDSLWDOL]HGWRLPSURYHPHQWVRWKHUWKDQ EXLOGLQJIRU ¾ %DQ\DQ 6WUHHW 3DYHPHQW 5HKDELOLWDWLRQ DGGLWLRQDO H[SHQGLWXUH RI  DQG FDSLWDOL]HG WR LQIUDVWUXFWXUHIRU  • ,QIUDVWUXFWXUHUHSRUWHGDQHWLQFUHDVHRIUHVXOWLQJLQDYDOXHQHWRIDFFXPXODWHGGHSUHFLDWLRQRI 7KLVQHWLQFUHDVHLQFOXGHVLQDGGLWLRQVWUDQVIHUUHGIURPFRQVWUXFWLRQLQSURJUHVVIRU YDULRXVURDGZD\SURMHFWVDQGIURPFDSLWDORXWOD\DGGLWLRQV2IIVHWWLQJWKHVHLQFUHDVHVZHUHD GLVSRVDOQHWRIDFFXPXODWHGGHSUHFLDWLRQWRWDOLQJDQGDGHSUHFLDWLRQH[SHQVHRI  • 6XEVFULSWLRQDVVHWVUHIOHFWHGDQHWLQFUHDVHRIZKLFKLQFOXGHVWKHDGGLWLRQRIWKH&LW\¶VQHZ(53 V\VWHP:RUNGD\&ORXG3ODWIRUPYDOXHGDWDQGRIIVHWE\LWVDPRUWL]DWLRQRI  %XVLQHVVW\SH$FWLYLWLHV  • &RQVWUXFWLRQLQ3URJUHVVUHSRUWHGDQHWGHFUHDVHRIFRPSULVLQJDGGLWLRQVRILQFDSLWDO RXWOD\DQGWUDQVIHURIWRLQIUDVWUXFWXUHDVVHWVSODFHGLQWRVHUYLFHGXULQJWKHFXUUHQWILVFDO\HDU 1RWHZRUWK\SURMHFWVGXULQJWKLVSHULRGLQFOXGH  ¾ 5&08(WLZDQGD1RUWK&DEOLQJDGGLWLRQDOH[SHQGLWXUHVRI ¾ 5&08$UERU6XEVWDWLRQ([WHULRU5HGHVLJQ 6WRUDJH,PSURYHPHQWVDGGLWLRQDOH[SHQGLWXUHVRI ¾ 5&08(WLZDQGD$YHQXH$UURZ5RXWHWR:KLWWUDP$YHQXH(OHFWULFDQG)LEHU/LQH([WHQVLRQDGGLWLRQDO H[SHQGLWXUHVRIDQGFDSLWDOL]HGWRLQIUDVWUXFWXUHIRU  • 7KH GHSUHFLDWLRQ H[SHQVH IRU WKH ILVFDO \HDU LV DOORFDWHGDPRQJ WKH 0XQLFLSDO 8WLOLW\ IRU WKH )LEHU2SWLF1HWZRUNIRUDQGWKH6SRUWV&RPSOH[IRU  $GGLWLRQDOLQIRUPDWLRQRQWKH&LW\ VFDSLWDODVVHWVFDQEHIRXQGLQ1RWHRIWKHQRWHVWRILQDQFLDOVWDWHPHQWV )XUWKHUPRUHVLJQLILFDQWFRPPLWPHQWVWKDWLQFOXGHFRQVWUXFWLRQFRQWUDFWVDUHLGHQWLILHGLQ1RWHRIWKHQRWHVWR ILQDQFLDOVWDWHPHQWV 20 0DMRUFDSLWDODVVHWDFWLYLWLHVGXULQJWKH\HDUDUHDVIROORZV Debt Administration  $VRI-XQHWKH&LW\KDGLQGHEWRXWVWDQGLQJQRWLQFOXGLQJQHWSHQVLRQOLDELOLWLHV  $VXPPDU\RIRXWVWDQGLQJORQJWHUPGHEWZLWKFRPSDUDWLYHDPRXQWVIRUWKHSULRUILVFDO\HDULVSUHVHQWHGEHORZ   ,QWKHFXUUHQWILVFDO\HDUWKHPRVWVLJQLILFDQWFKDQJHIURPWKHSUHYLRXV\HDUZDVWKHDGGLWLRQRILQ VXEVFULSWLRQOLDELOLWLHVSULPDULO\GXHWRWKHDFFRXQWLQJDGMXVWPHQWVIURPVXEVFULSWLRQVLVVXHGDVVRFLDWHGZLWKWKH GASB Statement No. 96SBITAs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¶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³(,)'/DZ´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¶VILGXFLDU\IXQGVFRQVLVWRIFXVWRGLDOIXQGVDQGDSULYDWHSXUSRVHWUXVWIXQG&XVWRGLDOIXQGVDUHXVHGWR DFFRXQWIRUVLWXDWLRQVZKHUHWKHJRYHUQPHQW¶VUROHLVSXUHO\FXVWRGLDO3ULYDWHSXUSRVHWUXVWIXQGVDUHDFFRXQWHG IRUXVLQJWKH“economic resources”PHDVXUHPHQWIRFXVDQGWKHDFFUXDOEDVLVRIDFFRXQWLQJ8QGHUWKHDFFUXDO EDVLVRIDFFRXQWLQJUHYHQXHVDUHUHFRJQL]HGLQWKHSHULRGLQZKLFKWKH\DUHHDUQHGZKLOHH[SHQVHVDUHUHFRJQL]HG LQWKHSHULRGLQZKLFKWKHOLDELOLW\LVLQFXUUHG  46 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 25*$1,=$7,21$1'6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6 &217,18('   7KH&LW\UHSRUWVWKHIROORZLQJPDMRUJRYHUQPHQWDOIXQGV  • 7KH*HQHUDO)XQGLVWKHJHQHUDORSHUDWLQJIXQGRIWKH&LW\$OOJHQHUDOWD[UHFHLSWVDQGIHHUHYHQXHQRW DOORFDWHGE\ODZ&RXQFLOSROLF\RUFRQWUDFWXDODJUHHPHQWWRRWKHUIXQGVDUHDFFRXQWHGIRULQWKH*HQHUDO)XQG *HQHUDO)XQGH[SHQGLWXUHVLQFOXGHRSHUDWLRQVWUDGLWLRQDOO\DVVRFLDWHGZLWKDFWLYLWLHVZKLFKDUHQRWUHTXLUHGWR EHDFFRXQWHGIRURUSDLGE\DQRWKHUIXQG  • 7KH'HYHORSPHQW,PSDFW)HHV)XQGDFFRXQWVIRUWKHUHFHLSWVIURPGHYHORSPHQWLPSDFWIHHVZKLFKDUHXVHG WRGHIUD\DOORUDSRUWLRQRIWKHFRVWRISXEOLFIDFLOLWLHVDVDUHVXOWRIGHYHORSPHQW  • 7KH+RXVLQJ6XFFHVVRU$JHQF\)XQGDFFRXQWVIRUWKHDVVHWVRIWKHIRUPHU5HGHYHORSPHQW$JHQF\¶V/RZDQG 0RGHUDWH,QFRPH+RXVLQJ)XQG7KHVRXUFHRIUHYHQXHLQWKHIXQGLVSULPDULO\IURPUHSD\PHQWRI/RZDQG 0RGHUDWH,QFRPHQRWHVDQGORDQVUHFHLYDEOHDQGLQWHUHVWUHFHLYHGIURPWKHQRWHVDQGORDQVUHFHLYDEOH  • 7KH)LUH'LVWULFW)XQGDFFRXQWVIRUWKHUHYHQXHDQGGLVEXUVHPHQWRIIXQGVUHFHLYHGE\WKH)LUH'LVWULFWLQWKH FRXUVHRIWKH'LVWULFW¶VILUHSURWHFWLRQVHUYLFHV7KHVRXUFHRIUHYHQXHLQWKHIXQGLVSULPDULO\IURPSURSHUW\ WD[HV  7KH&LW\UHSRUWVWKHIROORZLQJPDMRUSURSULHWDU\IXQGV  • 7KH6SRUWV&RPSOH[)XQGDFFRXQWVIRUSHUVRQQHODQGRSHUDWLQJFRVWVGLUHFWO\DVVRFLDWHGZLWKWKHRSHUDWLRQRI WKH&LW\¶VEDVHEDOOIDFLOLW\ZKLFKLVWKHKRPHRIWKH5DQFKR&XFDPRQJD4XDNHV  • 7KH0XQLFLSDO8WLOLW\)XQGDFFRXQWVIRUWKHFRVWVRIODERUDQGPDWHULDOVXVHGLQWKHRSHUDWLRQPDLQWHQDQFH FRQVWUXFWLRQDQGFRQVXPSWLRQRIHOHFWULFVHUYLFHVWRFHUWDLQUHVLGHQWLDOFRPPHUFLDODQGLQGXVWULDOFXVWRPHUV ZLWKLQWKH&LW\  • 7KH)LEHU2SWLF1HWZRUN)XQGDFFRXQWVIRUUHFHLSWVIURPXVHUFKDUJHVDQGOHDVHVIRUFRQGXLWDQGILEHUDFFHVV FRVWVDVVRFLDWHGZLWKWKH&LW\ VH[LVWLQJXWLOLW\LQIRUPDWLRQWHFKQRORJ\DQGWUDIILFILEHUFRQGXLWV  7KH&LW\UHSRUWVRQHQRQPDMRUSURSULHWDU\IXQG7KH6HFRQG6WRU\DQG%H\RQG)XQGDFFRXQWVIRUSHUVRQQHODQG RSHUDWLQJFRVWVGLUHFWO\DVVRFLDWHGZLWKWKHRSHUDWLRQRIWKH6HFRQG6WRU\DQG%H\RQGIDFLOLW\ZKLFKLVDQDGGLWLRQ WRWKH3DXO%LDQH3XEOLF/LEUDU\  $GGLWLRQDOO\WKH&LW\UHSRUWVWKHIROORZLQJIXQGW\SHV  • 6SHFLDOUHYHQXHIXQGVDUHXVHGWRDFFRXQWIRUWKHSURFHHGVRIVSHFLILFUHYHQXHVRXUFHV RWKHUWKDQIRUPDMRU FDSLWDOSURMHFWV WKDWDUHUHVWULFWHGE\ODZRUDGPLQLVWUDWLYHDFWLRQWRH[SHQGLWXUHVIRUVSHFLILHGSXUSRVHV  • &DSLWDOSURMHFWVIXQGVDUHXVHGWRDFFRXQWIRUILQDQFLDOUHVRXUFHVXVHGIRUWKHDFTXLVLWLRQRUFRQVWUXFWLRQRI PDMRUFDSLWDOIDFLOLWLHV RWKHUWKDQWKRVHILQDQFHGE\WKHSURSULHWDU\IXQGV   • ,QWHUQDOVHUYLFHIXQGVDFFRXQWIRUWKHILQDQFLDOWUDQVDFWLRQVUHODWHGWRUHSDLUUHSODFHPHQWDQGPDLQWHQDQFHRI &LW\RZQHG YHKLFOHV DQG HTXLSPHQW DQG WKH &LW\ V JHQHUDO LQIRUPDWLRQ V\VWHPV DQG WHOHFRPPXQLFDWLRQV KDUGZDUHDQGVRIWZDUH  • &XVWRGLDOIXQGVDUHXVHGWRDFFRXQWIRUPRQH\DQGSURSHUW\KHOGE\WKH&LW\DVWUXVWHHRUFXVWRGLDQ7KH\DUH DOVRXVHGWRDFFRXQWIRUYDULRXVDVVHVVPHQWGLVWULFWVDQGFRPPXQLW\IDFLOLWLHVGLVWULFWVIRUZKLFKWKH&LW\DFWV DVDQDJHQWIRUGHEWVHUYLFHDFWLYLW\  •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¶XVHIXOOLYHVDUHQRWFDSLWDOL]HG  0DMRURXWOD\VIRUFDSLWDODVVHWVDQGLPSURYHPHQWVDUHFDSLWDOL]HGDVSURMHFWVDUHFRQVWUXFWHG  &DSLWDODVVHWVDUHGHSUHFLDWHGXVLQJWKHVWUDLJKWOLQHPHWKRGRYHUWKHIROORZLQJHVWLPDWHGXVHIXOOLYHV  $VVHWV <HDUV %XLOGLQJLPSURYHPHQWV  ,PSURYHPHQWVRWKHUWKDQEXLOGLQJV  &RPSXWHUHTXLSPHQWDQGVRIWZDUH  (TXLSPHQWDQGYHKLFOHV  )XUQLWXUHDQGIL[WXUHV  ,QIUDVWUXFWXUH  ,QWDQJLEOHDVVHWV   'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV  ,QDGGLWLRQWRDVVHWVWKHVWDWHPHQWRIQHWSRVLWLRQZLOOVRPHWLPHVUHSRUWDVHSDUDWHVHFWLRQIRUGHIHUUHGRXWIORZVRI UHVRXUFHV7KLVVHSDUDWHILQDQFLDOVWDWHPHQWHOHPHQWGHIHUUHGRXWIORZVRIUHVRXUFHVUHSUHVHQWVDFRQVXPSWLRQRI QHW DVVHWV WKDW DSSOLHV WR IXWXUH SHULRGV DQG VR ZLOO QRW EH UHFRJQL]HG DV DQ RXWIORZ RI UHVRXUFHV H[SHQVHH[SHQGLWXUH XQWLOWKHQ7KHJRYHUQPHQWUHSRUWVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWRFHUWDLQFKDQJHV DULVLQJIURPQHWSHQVLRQOLDELOLW\QHWSHQVLRQDVVHWDQGQHW23(%DVVHW  ,QDGGLWLRQWROLDELOLWLHVWKHVWDWHPHQWRIQHWSRVLWLRQZLOOVRPHWLPHVUHSRUWDVHSDUDWHVHFWLRQIRUGHIHUUHGLQIORZV RIUHVRXUFHV7KLVVHSDUDWHILQDQFLDOVWDWHPHQWHOHPHQWGHIHUUHGLQIORZVRIUHVRXUFHVUHSUHVHQWVDQDFTXLVLWLRQRI QHWDVVHWVWKDWDSSOLHVWRDIXWXUHSHULRG V DQGVRZLOOQRWEHUHFRJQL]HGDVDQLQIORZRIUHVRXUFHV UHYHQXH XQWLO WKDWWLPH7KHJRYHUQPHQWKDVVHYHUDOLWHPVWKDWTXDOLI\IRUUHSRUWLQJLQWKLVFDWHJRU\   8QDYDLODEOHUHYHQXHLVUHSRUWHGRQO\LQWKHJRYHUQPHQWDOIXQGVEDODQFHVKHHW7KHJRYHUQPHQWDOIXQGVUHSRUW XQDYDLODEOHUHYHQXHVIRUUHYHQXHVWKDWDUHPHDVXUDEOHEXWQRWFROOHFWHGZLWKLQGD\VRIWKHHQGRIWKHFXUUHQW ILVFDOSHULRGRUGD\VIRUVDOHVWD[DQGJUDQWUHYHQXHV7KHVHDPRXQWVDUHGHIHUUHGDQGUHFRJQL]HGDVDQ LQIORZRIUHVRXUFHVLQWKHSHULRGWKDWWKHDPRXQWVEHFRPHDYDLODEOH   3HQVLRQDQG23(%UHODWHGGHIHUUHGLQIORZVDUHUHSRUWHGRQO\RQWKH6WDWHPHQWRI1HW3RVLWLRQ7KHJRYHUQPHQW UHSRUWVGHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVDULVLQJIURPFHUWDLQFKDQJHVLQWKHQHWSHQVLRQOLDELOLW\ QHWSHQVLRQDVVHWRUQHW23(%DVVHW'HIHUUHGLQIORZVDQGRXWIORZVRIUHVRXUFHVUHODWHGWRFKDQJHVLQWKH QHWSHQVLRQOLDELOLW\QHWSHQVLRQDVVHWDQGQHW23(%DVVHWDUHUHFRJQL]HGV\VWHPDWLFDOO\RYHUWLPH$PRXQWV DUHILUVWUHFRJQL]HGLQWKH\HDUWKHFKDQJHRFFXUV7KHUHPDLQLQJDPRXQWVDUHWREHUHFRJQL]HGLQIXWXUH SHULRGV7KHUHFRJQLWLRQSHULRGGLIIHUVGHSHQGLQJRQWKHVRXUFHRIWKHFKDQJHDQGWKH\FXUUHQWO\DUHDPRUWL]HG RYHU\HDUVRUWKHDYHUDJHUHPDLQLQJVHUYLFHOLIHWLPH  49 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 25*$1,=$7,21$1'6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6 &217,18('    $GHIHUUHGLQIORZRIUHVRXUFHVUHODWHGWROHDVHVLVUHSRUWHGIRUWKHYDOXHRIOHDVHUHFHLYDEOHSD\PHQWVWREH UHFRJQL]HGDVDQLQIORZRIUHVRXUFHVLQDV\VWHPDWLFDQGUDWLRQDOPDQQHURYHUWKHWHUPRIWKHOHDVHDJUHHPHQWV  3HQVLRQ  )RUSXUSRVHVRIPHDVXULQJWKHQHWSHQVLRQOLDELOLW\QHWSHQVLRQDVVHWGHIHUUHGRXWIORZVRIUHVRXUFHVDQGGHIHUUHG LQIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQVDQGSHQVLRQH[SHQVHLQIRUPDWLRQDERXWWKHILGXFLDU\QHWSRVLWLRQRIWKH SODQVDQGDGGLWLRQVWRGHGXFWLRQVIURPWKHSODQV¶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¶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¶5HWLUHH%HQHILW7UXVW &(5%7 DQDJHQWPXOWLSOHHPSOR\HUGHILQHG EHQHILWKHDOWKFDUHSODQDGPLQLVWHUHGE\WKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW6\VWHP &DO3(56 DQG DGGLWLRQVWRGHGXFWLRQVIURPWKH23(%SODQ¶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¶VUHVLJQDWLRQRUUHWLUHPHQW  9DFDWLRQ SD\ LV SD\DEOH WR HPSOR\HHV DW WKH WLPH D YDFDWLRQ LVWDNHQ RU XSRQ WHUPLQDWLRQ RI HPSOR\PHQW )LUH'LVWULFWHPSOR\HHVFDQQRWDFFUXHPRUHWKDQRQHDQGRQHKDOIWLPHVWKHLUUHJXODUDQQXDOHQWLWOHPHQW  6LFNOHDYHLVSD\DEOHZKHQDQHPSOR\HHLVXQDEOHWRZRUNGXHWRLOOQHVV&LW\HPSOR\HHVH[FOXGLQJ([HFXWLYH 0DQDJHPHQWJURXSPHPEHUVZKRWHUPLQDWHGWKHLUHPSOR\PHQWDIWHUILYH\HDUVRIFRQWLQXRXVVHUYLFHVDQGKDYH DFFUXHGDWOHDVWKRXUVRIVLFNOHDYHDUHHOLJLEOHIRUDSD\RXW([HFXWLYH0DQDJHPHQWJURXSPHPEHUVDUH HQWLWOHGWRDQDGGLWLRQDOVLFNOHDYHSD\RXWRIXSWRKRXUVEDVHGRQWKHLUQRWLILFDWLRQRILQWHQWWRUHWLUHIURPWKH &LW\IROORZLQJWKHVFKHGXOHRXWOLQHGLQWKHLU0HPRUDQGXPRI8QGHUVWDQGLQJ 028   )RU)LUH'LVWULFWHPSOR\HHVVLFNOHDYHPD\EHDFFXPXODWHGLQGHILQLWHO\RUDQHPSOR\HHZLWKWHQRUPRUH\HDUVRI VHUYLFHLVHOLJLEOHWRFRQYHUWXQXVHGVLFNOHDYHWRYDFDWLRQLQDFFRUGDQFHZLWKWKHIROORZLQJDQGZLWKDQ\UHPDLQGHU RIKRXUVWRVWLOOUHPDLQXQXVHGVLFNWLPH  $FFXPXODWHG6LFN (PSOR\HH /HDYH%DODQFH 9DFDWLRQ 7\SH 3ULRU&DOHQGDU<HDU &RQYHUVLRQ5DWH VKLIW KRXUV RQHKDOI VKLIW KRXUV RQHIRXUWK KRXU KRXUV RQHKDOI KRXU KRXUV RQHIRXUWK   8SRQVHUYLFHUHWLUHPHQWRIDSXEOLFVDIHW\HPSOR\HHWKHRSWLRQH[LVWVWRVHOOEDFNXSWRRQHKDOIRIWRWDODFFXPXODWHG VLFNOHDYHKDYHWKHOHDYHFUHGLWHGWRZDUGVHUYLFHLQDFFRUGDQFHZLWKWKH3XEOLF5HWLUHPHQW/DZRUDSSO\WKHFDVK YDOXH RI XS WR  RI WKH OHDYH WR WKH HPSOR\HH¶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‡ 1RQVSHQGDEOHIXQGEDODQFH(inherently non-spendable) ‡ 5HVWULFWHGIXQGEDODQFH(externally enforceable limitations on use) ‡ &RPPLWWHGIXQGEDODQFH(self-imposed limitations on use) ‡ $VVLJQHGIXQGEDODQFH(limitation resulting from intended use) 51 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 25*$1,=$7,21$1'6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6 &217,18('  ‡ 8QDVVLJQHGIXQGEDODQFH(residual net resources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¶V*HQHUDO)XQGEDODQFHFRPPLWWHGIRUFKDQJHVLQHFRQRPLFFLUFXPVWDQFHVLVHVWDEOLVKHGDWDJRDORID QLQH PRQWK UHVHUYH RU  RI WKH &LW\ *HQHUDO )XQG RSHUDWLQJ EXGJHW IRU WKH XSFRPLQJ ILVFDO \HDU 7KH )LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGIRUFKDQJHVLQHFRQRPLFFLUFXPVWDQFHVLVHVWDEOLVKHGDWDJRDORIDQLQH PRQWKUHVHUYHRURIWKH)LUH'LVWULFW¶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¶V*HQHUDO)XQGEDODQFHDQGWKH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGIRUIDFLOLWLHVFDSLWDOUHSODFHPHQWLV HVWDEOLVKHG DW D PLQLPXP JRDO RI  RI FDSLWDO DVVHWV YDOXH FRPSULVHG RI FRQVWUXFWLRQ LQ SURJUHVV H[FOXGLQJ LQIUDVWUXFWXUH  EXLOGLQJ LPSURYHPHQWV DQG LPSURYHPHQWV RWKHU WKDQ EXLOGLQJV IRU JRYHUQPHQWDO DFWLYLWLHV  :RUNLQJ&DSLWDO  7KH&LW\¶V*HQHUDO)XQGEDODQFHFRPPLWWHGIRU:RUNLQJ&DSLWDOLVHVWDEOLVKHGDWDPLQLPXPJRDORIRI WKH&LW\ V*HQHUDO)XQGRSHUDWLQJEXGJHWIRUWKHXSFRPLQJILVFDO\HDU7KH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHG IRU:RUNLQJ&DSLWDOLVHVWDEOLVKHGDWDPLQLPXPJRDORIRIWKH'LVWULFW¶VRSHUDWLQJEXGJHWIRUWKHXSFRPLQJ ILVFDO\HDU  6HOI,QVXUDQFH  7KH &LW\¶V *HQHUDO )XQG EDODQFH DQG WKH )LUH 'LVWULFW¶V IXQG EDODQFH FRPPLWWHG IRU SD\PHQW RI :RUNHU¶V&RPSHQVDWLRQ*HQHUDO/LDELOLW\DQG(PSOR\PHQW3UDFWLFHV/LDELOLW\FODLPVLVHVWDEOLVKHGDWDPLQLPXP JRDORIHLJKWWLPHVWKH&LW\¶VDQGWKH)LUH'LVWULFW¶VWRWDO\HDUO\6,5VIRUDOOW\SHVRILQVXUDQFHFRYHUDJH  3$6,6:RUNHU¶V&RPSHQVDWLRQ7DLO&ODLPV  7KH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGIRUSD\PHQWRIRXWVWDQGLQJ:RUNHU¶V&RPSHQVDWLRQFODLPVUHPDLQLQJ DIWHUWKH)LUH'LVWULFW¶VZLWKGUDZDOIURP3$6,6LVHVWDEOLVKHGDWDJRDOHTXDOWRWKHPRVWUHFHQWILVFDO\HDUHQG &ODLPV&RVW'HWDLO5HSRUWIURPWKH)LUH'LVWULFW¶VWKLUGSDUW\DGPLQLVWUDWRUSOXV 52 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 25*$1,=$7,21$1'6800$5<2)6,*1,),&$17$&&2817,1*32/,&,(6 &217,18('   (PSOR\HH/HDYH3D\RXWV  7KH&LW\¶V*HQHUDO)XQGEDODQFHDQGWKH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGIRUHPSOR\HHOHDYHSD\RXWVLV YDOXHGLQDFFRUGDQFHZLWKWKH&LW\¶VODERUFRQWUDFWVDVRIWKHODVWGD\RIWKHILVFDO\HDULQFOXGLQJDSSOLFDEOHIULQJH EHQHILWVDQGWKHDQQXDODOORFDWLRQIURPWKH&LW\¶VFRVWDOORFDWLRQSODQ  9HKLFOHDQG(TXLSPHQW5HSODFHPHQW  7KH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGIRUWKHUHSODFHPHQWRIILUHVDIHW\YHKLFOHVDQGHTXLSPHQWDVGHWHUPLQHG EDVHGRQWKH)LUH'LVWULFW¶VUHSODFHPHQWFULWHULDLVHVWDEOLVKHGDWDPLQLPXPJRDORIRI)LUH'LVWULFWYHKLFOHDQG HTXLSPHQWUHSODFHPHQWYDOXH  /DZ(QIRUFHPHQW  7KH&LW\¶V*HQHUDO)XQGEDODQFHFRPPLWWHGIRUSXEOLFVDIHW\SXUSRVHVLQFOXGLQJRSHUDWLRQVHTXLSPHQWFDSLWDO RXWOD\SHUVRQQHODQGERRNLQJIHHV7KHIXQGLQJJRDOIRUWKLVUHVHUYHLVWKHHTXLYDOHQWRIRIWKHPRVWUHFHQWO\ DSSURYHG6FKHGXOH$IURPWKH6DQ%HUQDUGLQR&RXQW\6KHULII¶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¶V*HQHUDO)XQGEDODQFHUHFHLYHGIURPSURMHFWVWKDWLQFOXGHDGHYHORSPHQWDJUHHPHQWZKLFK LVFRPPLWWHGIRUDGGUHVVLQJSURMHFWV¶H[SHFWHGLPSDFWVRQDIIRUGDEOHKRXVLQJGHPDQGIXWXUHJUHHQKRXVHJDV HPLVVLRQVILUHSURWHFWLRQVHUYLFHVHOHFWULFYHKLFOHFKDUJLQJUHGXFWLRQLQYHKLFOHPLOHVWUDYHOHGSHGHVWULDQVDIHW\ LPSURYHPHQWVFDUERQFDSWXUHDOWHUQDWLYHHQHUJ\SURGXFWLRQQRLVHUHGXFWLRQHQYLURQPHQWDOMXVWLFHDQGUHODWHG LPSDFWVW\SLFDOO\DVVRFLDWHGZLWKEXWQRWOLPLWHGWRODUJHZDUHKRXVHLQGXVWULDODQGFRPPHUFLDOGHYHORSPHQWV  3XEOLF6DIHW\3HUVRQQHO$IIRUGDEOH+RXVLQJ $SRUWLRQRIWKH)LUH'LVWULFW¶VIXQGEDODQFHFRPPLWWHGWRSURYLGHDGGLWLRQDOIXQGLQJWRPDWFKWKH&LW\¶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• 1HW,QYHVWPHQWLQ&DSLWDO$VVHWV±7KLVDPRXQWFRQVLVWVRIFDSLWDODVVHWVQHWRIDFFXPXODWHGGHSUHFLDWLRQDQG UHGXFHGE\RXWVWDQGLQJGHEWDWWULEXWHGWRWKHDFTXLVLWLRQFRQVWUXFWLRQRULPSURYHPHQWRIWKHDVVHWV  • 5HVWULFWHG1HW3RVLWLRQ±7KLVDPRXQWLVUHVWULFWHGE\H[WHUQDOFUHGLWRUVJUDQWRUVFRQWULEXWRUVRUODZVRU UHJXODWLRQVRIRWKHUJRYHUQPHQWV  • 8QUHVWULFWHG1HW3RVLWLRQ±7KLVDPRXQWLVDOOQHWSRVLWLRQWKDWGRHVQRWPHHWWKHGHILQLWLRQRI³QHWLQYHVWPHQW LQFDSLWDODVVHWV´RU³UHVWULFWHGQHWSRVLWLRQ´  1HW3RVLWLRQ)ORZ$VVXPSWLRQ  6RPHWLPHVWKHJRYHUQPHQWZLOOIXQGRXWOD\VIRUDSDUWLFXODUSXUSRVHIURPERWKUHVWULFWHG HJUHVWULFWHGERQGRU JUDQWSURFHHGV DQGXQUHVWULFWHGUHVRXUFHV,QRUGHUWRFDOFXODWHWKHDPRXQWVWRUHSRUWDVUHVWULFWHGDQGXQUHVWULFWHG QHWSRVLWLRQLQWKHJRYHUQPHQWZLGHDQGSURSULHWDU\IXQGILQDQFLDOVWDWHPHQWVDIORZDVVXPSWLRQPXVWEHPDGH DERXWWKHRUGHULQZKLFKWKHUHVRXUFHVDUHFRQVLGHUHGWREHDSSOLHG,WLVWKHJRYHUQPHQW¶VSROLF\WRFRQVLGHU UHVWULFWHG±QHWSRVLWLRQWRKDYHEHHQGHSOHWHGEHIRUHXQUHVWULFWHG±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• *HQHUDO *RYHUQPHQW LQFOXGHV OHJLVODWLYH DFWLYLWLHV &LW\ &OHUN &LW\ $WWRUQH\ &LW\ 0DQDJHU DV ZHOO DV PDQDJHPHQWRUVXSSRUWLYHVHUYLFHVDFURVVPRUHWKDQRQHIXQFWLRQDODUHD  • 3XEOLF6DIHW\3ROLFHLQFOXGHVWKRVHDFWLYLWLHVZKLFKLQYROYHSROLFHSURWHFWLRQ  • 3XEOLF6DIHW\)LUH3URWHFWLRQLQFOXGHVDFWLYLWLHVRIWKH)LUH'LVWULFWZKLFKLQYROYHWKHSURWHFWLRQRISHRSOHDQG SURSHUW\IURPILUHDVZHOODVHPHUJHQF\SUHSDUHGQHVV  • 3XEOLF6DIHW\$QLPDO&HQWHULQFOXGHVWKRVHDFWLYLWLHVZKLFKLQYROYHDQLPDOFDUHDQGVHUYLFHV  • &RPPXQLW\'HYHORSPHQWLQFOXGHVWKRVHDFWLYLWLHVZKLFKLQYROYHSODQQLQJDQGHFRQRPLFGHYHORSPHQWDVZHOO DVEXLOGLQJDQGVDIHW\  • &RPPXQLW\6HUYLFHVLQFOXGHVDFWLYLWLHVZKLFKSURYLGHUHFUHDWLRQFXOWXUDODQGHGXFDWLRQDOVHUYLFHV  •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±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¶V GHSRVLWV ZDV  DQG WKH EDQN EDODQFH ZDV 7KHGLIIHUHQFHUHSUHVHQWVRXWVWDQGLQJFKHFNVDQGRWKHUUHFRQFLOLQJLWHPV  7KH&DOLIRUQLD*RYHUQPHQW&RGHUHTXLUHV&DOLIRUQLDEDQNVDQGVDYLQJVDQGORDQDVVRFLDWLRQVWRVHFXUHD&LW\¶V GHSRVLWVE\SOHGJLQJJRYHUQPHQWVHFXULWLHVZLWKDYDOXHRIRID&LW\¶VGHSRVLWV&DOLIRUQLDODZDOVRDOORZV ILQDQFLDOLQVWLWXWLRQVWRVHFXUH&LW\GHSRVLWVE\SOHGJLQJILUVWWUXVWGHHGPRUWJDJHQRWHVKDYLQJDYDOXHRIRI D&LW\¶VWRWDOGHSRVLWV7KH&LW\7UHDVXUHUPD\ZDLYHWKHFROODWHUDOUHTXLUHPHQWIRUGHSRVLWVZKLFKDUHIXOO\LQVXUHG XSWRE\WKH)',&7KHFROODWHUDOIRUGHSRVLWVLQIHGHUDODQGVWDWHFKDUWHUHGEDQNVLVKHOGLQVDIHNHHSLQJ E\DQDXWKRUL]HG$JHQWRI'HSRVLWRU\UHFRJQL]HGE\WKH6WDWHRI&DOLIRUQLD'HSDUWPHQWRI%DQNLQJ7KHFROODWHUDO IRUGHSRVLWVZLWKVDYLQJVDQGORDQDVVRFLDWLRQVLVJHQHUDOO\KHOGLQVDIHNHHSLQJE\WKH)HGHUDO+RPH/RDQ%DQNLQ 6DQ)UDQFLVFR&DOLIRUQLDDVDQ$JHQWRI'HSRVLWRU\7KHVHVHFXULWLHVDUHSK\VLFDOO\KHOGLQDQXQGLYLGHGSRROIRU DOO&DOLIRUQLDSXEOLFDJHQF\GHSRVLWRUV8QGHU*RYHUQPHQW&RGH6HFWLRQWKHSODFHPHQWRIVHFXULWLHVE\D EDQNRUVDYLQJVDQGORDQDVVRFLDWLRQZLWKDQ³$JHQWRI'HSRVLWRU\´KDVWKHHIIHFWRISHUIHFWLQJWKHVHFXULW\LQWHUHVW LQWKHQDPHRIWKHORFDOJRYHUQPHQWDODJHQF\$FFRUGLQJO\DOOFROODWHUDOKHOGE\&DOLIRUQLD$JHQWVRI'HSRVLWRU\ DUHFRQVLGHUHGWREHKHOGIRUDQGLQWKHQDPHRIWKHORFDOJRYHUQPHQWDODJHQF\  ,QYHVWPHQWV  8QGHUSURYLVLRQRIWKH&LW\¶VLQYHVWPHQWSROLF\DQGLQDFFRUGDQFHZLWKWKH&DOLIRUQLD*RYHUQPHQW&RGHWKH IROORZLQJLQYHVWPHQWVDUHDXWKRUL]HG  • 8QLWHG6WDWHV7UHDVXU\6HFXULWLHV • 8QLWHG6WDWHV)HGHUDO$JHQFLHV • 6XSUDQDWLRQDO6HFXULWLHV • 0XQLFLSDOV1RWHVRU%RQGV • 1HJRWLDEOH&HUWLILFDWHVRI'HSRVLW • $VVHW%DFNHG6HFXULWLHV • 0HGLXP7HUP1RWHV • %DQNHUV¶$FFHSWDQFHV • &RPPHUFLDO3DSHU • 5HSXUFKDVH$JUHHPHQWV 5HSRV  • 6WDWHRI&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG /$,)  • /RFDO*RYHUQPHQW,QYHVWPHQW3RRO /*,3  • 0RQH\0DUNHW)XQGV •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¶VLQYHVWPHQWSROLF\  ,QYHVWPHQWVLQ6WDWH,QYHVWPHQW3RRO  7KH&LW\LVDYROXQWDU\SDUWLFLSDQWLQWKH/RFDO$JHQF\,QYHVWPHQW)XQG /$,) WKDWLVUHJXODWHGE\&DOLIRUQLD *RYHUQPHQW&RGH6HFWLRQXQGHUWKHRYHUVLJKWRIWKH7UHDVXUHURIWKH6WDWHRI&DOLIRUQLD/$,)LVRYHUVHHQ E\WKH/RFDO$JHQF\,QYHVWPHQW$GYLVRU\%RDUGZKLFKFRQVLVWVRIILYHPHPEHUVLQDFFRUGDQFHZLWK6WDWHVWDWXWH 7KH6WDWH7UHDVXUHU¶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¶V $V RI -XQHWKH&LW\LQYHVWHGLQ)HGHUDO)DUP&UHGLW%DQN)HGHUDO+RPH/RDQ0RUWJDJH&RUSRUDWLRQ)HGHUDO 1DWLRQDO0RUWJDJH$VVRFLDWLRQDQGPXQLFLSDOERQGVZKLFKZHUHDOOUDWHG³%DDO´E\0RRG\¶V$OOVHFXULWLHVZHUH LQYHVWPHQWJUDGHDQGZHUHOHJDOXQGHU6WDWHDQG&LW\ODZ$VRI-XQHWKH&LW\ VLQYHVWPHQWVLQH[WHUQDO LQYHVWPHQWSRROVDQGPRQH\PDUNHWPXWXDOIXQGVDUHXQUDWHG  &XVWRGLDO&UHGLW5LVN  7KHFXVWRGLDOFUHGLWULVNIRUGHSRVLWVLVWKHULVNWKDWLQWKHHYHQWRIWKHIDLOXUHRIDGHSRVLWRU\ILQDQFLDOLQVWLWXWLRQD JRYHUQPHQWZLOOQRWEHDEOHWRUHFRYHUGHSRVLWVRUZLOOQRWEHDEOHWRUHFRYHUFROODWHUDOVHFXULWLHVWKDWDUHLQWKH SRVVHVVLRQRIDQRXWVLGHSDUW\7KHFXVWRGLDOFUHGLWULVNIRULQYHVWPHQWVLVWKHULVNWKDWLQWKHHYHQWRIWKHIDLOXUHRI WKHFRXQWHUSDUW\WRDWUDQVDFWLRQDJRYHUQPHQWZLOOQRWEHDEOHWRUHFRYHUWKHYDOXHRILQYHVWPHQWRUFROODWHUDO VHFXULWLHVWKDWDUHLQWKHSRVVHVVLRQRIDQRXWVLGHSDUW\$VRI-XQHWKH&LW\¶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¶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¶VORZDQGPRGHUDWHLQFRPHKRXVLQJIXQG$VDGYDQFHVZHUHPDGHE\WKH$JHQF\ 60 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 127(6$1'/2$165(&(,9$%/(6 &217,18('   EHJLQQLQJ$SULOWKHVHDPRXQWVZHUHDGGHGWRDQGEHFDPHWKHSULQFLSDOEDODQFHRIWKLV5HVLGXDO 5HFHLSWV 1RWH DQG DUH DFFUXLQJ VLPSOH LQWHUHVW DW  SHU DQQXP IURP WKH GDWH RI SD\PHQW WKURXJK 'HFHPEHU$QQXDOSD\PHQWVRISULQFLSDODQGDFFUXHGLQWHUHVWVKDOOQRWFRPPHQFHXQWLOWKHRSHUDWLRQRI WKHSURMHFWKDVJHQHUDWHGUHVLGXDOUHFHLSWV2Q'HFHPEHUWKHUHVLGXDOUHFHLSWVSURPLVVRU\QRWHZDV DPHQGHGDQGUHVWDWHGLQFRQQHFWLRQZLWKWKHUHIXQGLQJRIWKH6RXWKHUQ&DOLIRUQLD+RXVLQJ'HYHORSPHQW &RUSRUDWLRQ¶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¶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³'HYHORSHU´ LQWKHDPRXQW RI ³&LW\3UHGHYHORSPHQW/RDQ´ SXUVXDQWWRFHUWDLQ$FTXLVLWLRQ'LVSRVLWLRQ'HYHORSPHQWDQG/RDQ $JUHHPHQWGDWHG)HEUXDU\EHWZHHQ'HYHORSHUDQGWKH&LW\ WKH³$''/$´ WRGHYHORSDXQLW DIIRUGDEOHVHQLRUKRXVLQJSURMHFWDW$UFKLEDOG$YHQXHUHIHUUHGWRDV9LOOD3DFLILFD,,7KHLQWHUHVWRIWKH ORDQLV]HURSHUFHQW  SHUDQQXP7KHSULQFLSDODQGDQ\LQWHUHVWGXHXQGHUWKLV1RWHVKDOOEHUHSDLGRU IRUJLYHQDVVHWIRUWKLQWKH$''/$DVDPHQGHGE\DILUVW,PSOHPHQWDWLRQDQG$PHQGPHQWWR$FTXLVLWLRQ 'LVSRVLWLRQ 'HYHORSPHQW DQG /RDQ $JUHHPHQW GDWHG )HEUXDU\  EHWZHHQ WKH %RUURZHU¶V SUHGHFHVVRULQLQWHUHVWDQG&LW\DQGD6HFRQG,PSOHPHQWDWLRQDQG$PHQGPHQWWR$FTXLVLWLRQ'LVSRVLWLRQ 61 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 127(6$1'/2$165(&(,9$%/(6 &217,18('   'HYHORSPHQWDQG/RDQ$JUHHPHQWGDWHG$SULO7KHORDQPD\EHSUHSDLGLQIXOORULQSDUWDWDQ\WLPH ZLWKRXWSHQDOW\RUSUHPLXP2Q$SULOWKH&LW\HQWHUHGLQWRD3URPLVVRU\1RWH6HFXUHG%\'HHGRI 7UXVWZLWK9LOOD3DFLILFD,,/3 ³%RUURZHU´ QRWWRH[FHHGWKHVXPRIFRQVLVWLQJRIWKHH[LVWLQJ 3UHGHYHORSPHQW/RDQRIPDGHE\WKH&LW\WRWKH'HYHORSHUDSXUFKDVHPRQH\ORDQLQ FRQQHFWLRQZLWKWKHDFTXLVLWLRQRIODQGIURP&LW\DFRQVWUXFWLRQORDQWKDWLVEHLQJSDUWLDOO\GLVEXUVHG RQWKHGDWHRIWKHFORVLQJIRUWKH&LW\LPSDFWIHHVDQGWRUHLPEXUVH9LOOD3DFLILFD,,/3IRUFRQVWUXFWLRQFRVWV DFFUXHGSULRUWRWKHGDWHRIWKHORDQDQGDSHUPDQHQWORDQRIXSWR ³3HUP/RDQ3ULQFLSDO´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¶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¶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¶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lan Description 7KH&LW\RI5DQFKR&XFDPRQJDFRQWULEXWHVWRWKH&DOLIRUQLD3XEOLF(PSOR\HHV5HWLUHPHQW6\VWHP 3(56 DQ DJHQWPXOWLSOHHPSOR\HUSXEOLFHPSOR\HHGHILQHGEHQHILWSHQVLRQSODQ3(56SURYLGHVUHWLUHPHQWDQGGLVDELOLW\ EHQHILWVDQQXDOFRVWRIOLYLQJDGMXVWPHQWVDQGGHDWKEHQHILWVWRSODQPHPEHUVDQGEHQHILFLDULHV3(56DFWVDVD FRPPRQLQYHVWPHQWDQGDGPLQLVWUDWLYHDJHQWIRUSDUWLFLSDWLQJSXEOLFHQWLWLHVZLWKLQWKH6WDWHRI&DOLIRUQLD%HQHILW SURYLVLRQVDQGDOORWKHUUHTXLUHPHQWVDUHHVWDEOLVKHGE\VWDWHVWDWXWHDQG&LW\RUGLQDQFH&RSLHVRI3(56¶DQQXDO ILQDQFLDOUHSRUWPD\EHREWDLQHGRQWKH&DO3(56¶ZHEVLWH  Benefits Provided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¶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mployees Covered $VRI-XQHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKHEHQHILWWHUPVRIWKH3ODQ    Contribution Description 6HFWLRQ  F  RI WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW /DZ 3(5/  UHTXLUHV WKDW WKH HPSOR\HU FRQWULEXWLRQUDWHVIRUDOOSXEOLFHPSOR\HUVDUHGHWHUPLQHGRQDQDQQXDOEDVLVE\WKHDFWXDU\DQGVKDOOEHHIIHFWLYH RQWKH-XO\IROORZLQJQRWLFHRIDFKDQJHLQWKHUDWH7KHWRWDOSODQFRQWULEXWLRQVDUHGHWHUPLQHGWKURXJK&DO3(56¶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et Pension Liability 7KHQHWSHQVLRQOLDELOLW\LVPHDVXUHGDVWKHWRWDOSHQVLRQOLDELOLW\OHVVWKHSHQVLRQSODQ¶VILGXFLDU\QHWSRVLWLRQ7KH QHWSHQVLRQOLDELOLW\RIHDFK3ODQLVPHDVXUHGDVRI-XQHXVLQJDQDQQXDODFWXDULDOYDOXDWLRQDVRI -XQH$VXPPDU\RISULQFLSDODVVXPSWLRQVDQGPHWKRGVXVHGWRGHWHUPLQHWKHQHWSHQVLRQOLDELOLW\LV VKRZQEHORZ  1XPEHURI0HPEHUV 'HVFULSWLRQ &LW\0LVFHOODQHRXV3ODQ $FWLYHPHPEHUV  7UDQVIHUUHGPHPEHUV  6HSDUDWHGPHPEHUV  5HWLUHGPHPEHUVDQGEHQHILFLDULHV  7RWDO  71 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 3(16,213/$12%/,*$7,216 &217,18('  Actuarial Methods and Assumptions Used to Determine Total Pension Liability  7KH-XQHYDOXDWLRQZDVXVHGWRGHWHUPLQHWKH-XQHWRWDOSHQVLRQOLDELOLW\EDVHGRQWKHIROORZLQJ DFWXDULDOPHWKRGVDQGDVVXPSWLRQV   Long-term Expected Rate of Return  7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFNPHWKRG LQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ H[SHFWHGUHWXUQVQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ  DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ&DO3(56WRRNLQWR DFFRXQWERWKVKRUWWHUPDQGORQJWHUPPDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWHGSHQVLRQIXQGFDVKIORZV 8VLQJKLVWRULFDOUHWXUQVRIDOORIWKHIXQGV¶DVVHWFODVVHVH[SHFWHGFRPSRXQG JHRPHWULF UHWXUQVZHUHFDOFXODWHG RYHUWKHVKRUWWHUP ILUVW\HDUV DQGWKHORQJWHUP \HDUV XVLQJDEXLOGLQJEORFNDSSURDFK8VLQJWKH H[SHFWHGQRPLQDOUHWXUQVIRUERWKVKRUWWHUPDQGORQJWHUPWKHSUHVHQWYDOXHRIEHQHILWVZDVFDOFXODWHGIRUHDFK IXQG7KHH[SHFWHGUDWHRIUHWXUQZDVVHWE\FDOFXODWLQJWKHURXQGHGVLQJOHHTXLYDOHQWH[SHFWHGUHWXUQWKDWDUULYHG DWWKHVDPHSUHVHQWYDOXHRIEHQHILWVIRUFDVKIORZVDVWKHRQHFDOFXODWHGXVLQJERWKVKRUWWHUPDQGORQJWHUP UHWXUQV7KHH[SHFWHGUDWHRIUHWXUQZDVWKHQVHWHTXDOWRWKHVLQJOHHTXLYDOHQWUDWHFDOFXODWHGDERYHDQGDGMXVWHG WRDFFRXQWIRUDVVXPHGDGPLQLVWUDWLYHH[SHQVHV7KHH[SHFWHGUHDOUDWHVRIUHWXUQE\DVVHWFODVVDUHDVIROORZHG   $QH[SHFWHGLQIODWLRQRIXVHGIRUWKLVSHULRG )LJXUHVDUHEDVHGRQWKH$VVHW/LDELOLW\0DQDJHPHQWVWXG\ 9DOXDWLRQ'DWH -XQH 0HDVXUHPHQW'DWH -XQH $FWXDULDO&RVW0HWKRG $FWXDULDO$VVXPSWLRQV 'LVFRXQW5DWH  ,QIODWLRQ  3URMHFWHG6DODU\,QFUHDVHV 0RUWDOLW\5DWH7DEOH   3RVW5HWLUHPHQW%HQHILW,QFUHDVH   7KHPRUWDOLW\WDEOHXVHGZDVGHYHORSHGEDVHGRQ&DO3(56VSHFLILFGDWD7KHWDEOHLQFOXGHV\HDUVRIPRUWDOLW\LPSURYHPHQWVXVLQJ 6RFLHW\RI$FWXDULHV6FDOHRIVFDOH03)RUPRUHGHWDLOVRQWKLVWDEOHSOHDVHUHIHUWRWKH1RYHPEHUH[SHULHQFHVWXG\UHSRUWWKDW FDQEHIRXQGRQWKH&DO3(56ZHEVLWH (QWU\$JH1RUPDOLQDFFRUGDQFHZLWKWKH UHTXLUHPHQWVRI*$6%6WDWHPHQW1R 9DULHVE\(QWU\$JHDQG6HUYLFH 'HULYHGXVLQJ&DO3(56¶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iscount Rate  7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ZDV7KHSURMHFWLRQRIFDVKIORZVXVHGWR GHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWFRQWULEXWLRQVIURPSODQPHPEHUVZLOOEHPDGHDWWKHFXUUHQWPHPEHU FRQWULEXWLRQUDWHVDQGWKDWFRQWULEXWLRQVIURPHPSOR\HUVZLOOEHPDGHDWVWDWXWRULO\UHTXLUHGUDWHVDFWXDULDOO\ GHWHUPLQHG%DVHGRQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QHWSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNH DOOSURMHFWHGIXWXUHEHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ SODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\  Changes in the Net Pension Liability  7KHIROORZLQJWDEOHVKRZVWKHFKDQJHVLQQHWSHQVLRQOLDELOLW\UHFRJQL]HGRYHUWKHPHDVXUHPHQWSHULRGIRUWKH&LW\ 0LVFHOODQHRXV3ODQ    Sensitivity of the Net Pension Liability to Changes in the Discount Rate  7KHIROORZLQJSUHVHQWVWKHQHWSHQVLRQOLDELOLW\RIWKH3ODQ¶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ension Plan Fiduciary Net Position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¶VILGXFLDU\QHWSRVLWLRQLVDYDLODEOHLQWKHVHSDUDWHO\LVVXHG &DO3(56ILQDQFLDOUHSRUWV6HH&DO3(56ZHEVLWHIRUDGGLWLRQDOLQIRUPDWLRQ  Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions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lan Description $OOTXDOLILHGSHUPDQHQWDQGSUREDWLRQDU\)LUH'LVWULFW¶VHPSOR\HHVDUHHOLJLEOHWRSDUWLFLSDWHLQWKH6DIHW\(PSOR\HH 3HQVLRQ 3ODQ RU 0LVFHOODQHRXV (PSOR\HH 3HQVLRQ 3ODQ ERWK FRVWVKDULQJ PXOWLSOH HPSOR\HU GHILQHG EHQHILW SHQVLRQSODQVDGPLQLVWHUHGE\WKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW6\VWHP &DO3(56 %HQHILWSURYLVLRQV XQGHUWKH3ODQVDUHHVWDEOLVKHGE\6WDWHVWDWXWHDQG/RFDO*RYHUQPHQWUHVROXWLRQ&DO3(56LVVXHVSXEOLFO\ DYDLODEOHUHSRUWVWKDWLQFOXGHDIXOOGHVFULSWLRQRIWKHSHQVLRQSODQVUHJDUGLQJEHQHILWSURYLVLRQVDVVXPSWLRQVDQG PHPEHUVKLSLQIRUPDWLRQWKDWFDQEHIRXQGRQWKH&DO3(56ZHEVLWH&RSLHVRI3(56¶DQQXDOILQDQFLDOUHSRUWPD\ EHREWDLQHGIURPLWVH[HFXWLYHRIILFHDW36WUHHW6DFUDPHQWR&DOLIRUQLD Benefits Provided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¶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mployees Covered $VRIWKHYDOXDWLRQGDWHRI-XQHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKHEHQHILWWHUPVRIWKH3ODQV   Contribution Description 6HFWLRQ  F  RI WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW /DZ 3(5/  UHTXLUHV WKDW WKH HPSOR\HU FRQWULEXWLRQUDWHVIRUDOOSXEOLFHPSOR\HUVEHGHWHUPLQHGRQDQDQQXDOEDVLVE\WKHDFWXDU\DQGVKDOOEHHIIHFWLYH RQWKH-XO\IROORZLQJQRWLFHRIDFKDQJHLQWKHUDWH7KHWRWDOSODQFRQWULEXWLRQVDUHGHWHUPLQHGWKURXJKWKH &DO3(56¶DQQXDODFWXDULDOYDOXDWLRQSURFHVV7KHDFWXDULDOO\GHWHUPLQHGUDWHLVEDVHGRQWKHHVWLPDWHGDPRXQW QHFHVVDU\WRSD\WKH3ODQV¶DOORFDWHGVKDUHRIWKHULVNSRRO¶VFRVWVRIEHQHILWVHDUQHGE\HPSOR\HHVGXULQJWKH \HDU DQG DQ\ XQIXQGHG DFFUXHG OLDELOLW\ 7KH HPSOR\HU LV UHTXLUHG WR FRQWULEXWH WKH GLIIHUHQFH EHWZHHQ WKH DFWXDULDOO\GHWHUPLQHGUDWHDQGWKHFRQWULEXWLRQUDWHRIHPSOR\HHV  )RUWKH\HDUHQGHG-XQHWKHHPSOR\HUFRQWULEXWLRQVUHFRJQL]HGDVDUHGXFWLRQWRQHWSHQVLRQOLDELOLW\ZDV IRUWKH0LVFHOODQHRXV3ODQDQGIRUWKH6DIHW\3ODQIRUDWRWDORIIRUWKHSODQV  Net Pension Liability 7KHQHWSHQVLRQOLDELOLW\LVPHDVXUHGDVWKHWRWDOSHQVLRQOLDELOLW\OHVVWKHSHQVLRQSODQ¶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ctuarial Methods and Assumptions Used to Determine Total Pension Liability  7KH-XQHYDOXDWLRQZDVUROOHGIRUZDUGWRGHWHUPLQHWKH-XQHWRWDOSHQVLRQOLDELOLW\EDVHGRQWKH IROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV   Long-term Expected Rate of Return  7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJDEXLOGLQJEORFNPHWKRG LQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRIUHWXUQ H[SHFWHGUHWXUQVQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ  DUHGHYHORSHGIRUHDFKPDMRUDVVHWFODVV  9DOXDWLRQ'DWH -XQH 0HDVXUHPHQW'DWH -XQH $FWXDULDO&RVW0HWKRG (QWU\ $JH 1RUPDO LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI*$6%6WDWHPHQW1R $FWXDULDO$VVXPSWLRQV 'LVFRXQW5DWH  ,QIODWLRQ  6DODU\,QFUHDVHV 9DULHVE\(QWU\$JHDQG6HUYLFH 0RUWDOLW\5DWH7DEOH   'HULYHG XVLQJ &DO3(56¶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¶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iscount Rate  7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ZDV7KHSURMHFWLRQRIFDVKIORZVXVHGWR GHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWFRQWULEXWLRQVIURPSODQPHPEHUVZLOOEHPDGHDWWKHFXUUHQWPHPEHU FRQWULEXWLRQUDWHVDQGWKDWFRQWULEXWLRQVIURPHPSOR\HUVZLOOEHPDGHDWVWDWXWRULO\UHTXLUHGUDWHVDFWXDULDOO\ GHWHUPLQHG%DVHGRQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QHWSRVLWLRQZDVSURMHFWHGWREHDYDLODEOHWRPDNH DOOSURMHFWHGIXWXUHEHQHILWSD\PHQWVRIFXUUHQWSODQPHPEHUV7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ SODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\  Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions  $VRI-XQHWKH)LUH'LVWULFWUHSRUWHGDQHWSHQVLRQOLDELOLW\RIIRULWVSURSRUWLRQDWHVKDUHVRI WKH0LVFHOODQHRXV3ODQDQGIRULWVSURSRUWLRQDWHVKDUHVRIWKH6DIHW\3ODQIRUDWRWDORI IRUWKHFRVWVKDULQJSODQV  7KH)LUH'LVWULFW¶VQHWSHQVLRQOLDELOLW\IRUHDFKUDWH3ODQLVPHDVXUHGDVWKHSURSRUWLRQDWHVKDUHRIWKHQHWSHQVLRQ OLDELOLW\7KHQHWSHQVLRQOLDELOLW\RIHDFKRIWKHUDWH3ODQVLVPHDVXUHGDVRI-XQHDQGWKHWRWDOSHQVLRQ OLDELOLW\IRUHDFKUDWH3ODQXVHGWRFDOFXODWHWKHQHWSHQVLRQOLDELOLW\ZDVGHWHUPLQHGE\DQDFWXDULDOYDOXDWLRQDVRI -XQH7KH)LUH'LVWULFW¶VSURSRUWLRQRIWKHQHWSHQVLRQOLDELOLW\ZDVEDVHGRQDSURMHFWLRQRIWKH)LUH'LVWULFW¶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¶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ensitivity of the Net Pension Liability to Changes in the Discount Rate  7KHIROORZLQJSUHVHQWVWKHQHWSHQVLRQOLDELOLW\RIWKH3ODQ¶VDVRIWKHPHDVXUHPHQWGDWHFDOFXODWHGXVLQJWKH GLVFRXQWUDWHRISHUFHQWDVZHOODVZKDWWKHQHWSHQVLRQOLDELOLW\ZRXOGEHLILWZHUHFDOFXODWHGXVLQJDGLVFRXQW UDWHWKDWLVSHUFHQWDJHSRLQWORZHU SHUFHQW RUSHUFHQWDJHSRLQWKLJKHU SHUFHQW WKDQWKHFXUUHQW UDWH   Pension Plan Fiduciary Net Position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¶VILGXFLDU\QHWSRVLWLRQLVDYDLODEOHLQWKHVHSDUDWHO\LVVXHG &DO3(56ILQDQFLDOUHSRUWV6HH&DO3(56ZHEVLWHIRUDGGLWLRQDOLQIRUPDWLRQ  127( 3$565(7,5(0(17(1+$1&(0(173/$1  *HQHUDO,QIRUPDWLRQ$ERXWWKH3ODQ  Plan Description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enefits Provided  3$56SURYLGHVVXSSOHPHQWDOUHWLUHPHQWEHQHILWVWRHOLJLEOHHPSOR\HHVRIWKH&LW\(PSOR\HHVDUHHOLJLEOHWRUHFHLYH EHQHILWVXQGHUWKHSODQLIWKH\PHHWWKHIROORZLQJUHTXLUHPHQWV DPLVFHOODQHRXVHPSOR\HHRIWKH&LW\RU&LW\ &RXQFLORQRUDIWHU'HFHPEHU DWOHDVW\HDUVRIDJH KDVFRPSOHWHGRUPRUH\HDUVRIIXOOWLPH FRQWLQXRXVHPSOR\PHQWDWWKH&LW\ KDVWHUPLQDWHGHPSOR\PHQWZLWKWKH&LW\DQGKDVFRQFXUUHQWO\UHWLUHGXQGHU &DO3(56LIDQDFWLYH&DO3(56PHPEHUDQG KDVDSSOLHGIRUEHQHILWVXQGHUWKHSODQ%HQHILWVVKDOOEHLQDQ DPRXQWHTXDOWRRQHWZHOIWKRIWKHSURGXFWRIWKHQXPEHURIIXOODQGSDUWLDO\HDUVRIIXOOWLPHFRQWLQXRXVHPSOR\PHQW ZLWKWKH&LW\FRPSOHWHGDVRIWKH0HPEHU¶VUHWLUHPHQWWLPHVWKH0HPEHU¶VILQDOSD\WLPHVWKH3$56EHQHILWIDFWRU 7KHWRWDOFRPELQHG&DO3(56DJHIDFWRUDQG3$56EHQHILWIDFWRUDWUHWLUHPHQWPD\QRWH[FHHGWKUHHSHUFHQW    Employees Covered $VRIWKHPHDVXUHPHQWGDWHRI-XQHWKHIROORZLQJHPSOR\HHVZHUHFRYHUHGE\WKHEHQHILWWHUPVRIWKH 3ODQ   Contribution Description 7KHWRWDOSODQFRQWULEXWLRQVDUHGHWHUPLQHGWKURXJKWKH3$56¶DQQXDODFWXDULDOYDOXDWLRQSURFHVV7KHDFWXDULDOO\ GHWHUPLQHGUDWHLVWKHHVWLPDWHGDPRXQWQHFHVVDU\WRILQDQFHWKHFRVWVRIEHQHILWVHDUQHGE\HPSOR\HHVGXULQJ WKH\HDUZLWKDQDGGLWLRQDODPRXQWWRILQDQFHDQ\XQIXQGHGDFFUXHGOLDELOLW\'XHWRWKH&LW\¶VSUHIXQGLQJRILWV SHQVLRQOLDELOLW\ZLWK3$56WKH&LW\¶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¶V UHWLUHPHQWWLPHVWKH0HPEHU¶VILQDOSD\WLPHVWKH3$56EHQHILW IDFWRU 'HVFULSWLRQ 1XPEHURI0HPEHUV $FWLYHPHPEHUV  ,QDFWLYHPHPEHUVHQWLWOHGWRIXWXUHEHQHILWV  5HWLUHGPHPEHUVDQGEHQHILFLDULHV  7RWDO  81 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 3$565(7,5(0(17(1+$1&(0(173/$1 &217,18('   1HW3HQVLRQ$VVHW 7KHQHWSHQVLRQDVVHWIRUWKH3ODQLVPHDVXUHGDVWKHWRWDOSHQVLRQOLDELOLW\OHVVWKHSHQVLRQSODQ¶VILGXFLDU\QHW SRVLWLRQ7KHSHQVLRQOLDELOLW\RIWKH3ODQLVPHDVXUHGDVRI-XQHXVLQJDQDQQXDODFWXDULDOYDOXDWLRQDV RI-XQH$VXPPDU\RISULQFLSDODVVXPSWLRQVDQGPHWKRGVXVHGWRGHWHUPLQHWKHQHWSHQVLRQOLDELOLW\LV VKRZQEHORZ Actuarial Methods and Assumptions Used to Determine Total Pension Liability  7KH-XQHWRWDOSHQVLRQOLDELOLWLHVZHUHEDVHGRQWKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV  Discount Rate  7KHGLVFRXQWUDWHXVHGWRPHDVXUHWKHWRWDOSHQVLRQOLDELOLW\ZDV7KHH[SHFWHGORQJWHUPUDWHRIUHWXUQRQ LQYHVWPHQWVZDVXSGDWHGIURPWR)XWXUHFRQWULEXWLRQVEDVHGRQWKHIXQGLQJSROLF\ZLOOEHPDGHDW FRQWUDFWXDOO\UHTXLUHGUDWHVDFWXDULO\GHWHUPLQHG%DVHGRQWKHVHDVVXPSWLRQVWKHILGXFLDU\QHWSRVLWLRQZDV SURMHFWHGWREHDYDLODEOHWRPDNHDOOSURMHFWHGIXWXUHEHQHILWSD\PHQWV7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRI UHWXUQRQSODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHGEHQHILWSD\PHQWV  7KHWDEOHEHORZUHIOHFWVORQJWHUPH[SHFWHGUHDOUDWHRIUHWXUQE\DVVHWFODVV7KHUDWHRIUHWXUQZDVFDOFXODWHG XVLQJWKHFDSLWDOPDUNHWDVVXPSWLRQVDSSOLHGWRGHWHUPLQHWKHGLVFRXQWUDWHDQGDVVHWDOORFDWLRQ7KHVHJHRPHWULF UDWHVRIUHWXUQDUHQHWRIDGPLQLVWUDWLYHH[SHQVHV   9DOXDWLRQ'DWH -XQH 0HDVXUHPHQW'DWH -XQH $FWXDULDO&RVW0HWKRG (QWU\ $JH 1RUPDO LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI *$6% 6WDWHPHQW1R $FWXDULDO$VVXPSWLRQV 'LVFRXQW5DWH  ,QIODWLRQ  ([SHFWHGUHWXUQRQSODQDVVHWV  $VVHWYDOXDWLRQPHWKRG 0DUNHWYDOXHRIDVVHWV 0RUDOLW\ %DVHGRQDVVXPSWLRQVIRU3XEOLF$JHQF\0LVFHOODQHRXV(PSOR\HHV SXEOLVKHGLQWKH&DO3(56([SHULHQFH6WXG\7KHVHWDEOHVLQFOXGH JHQHUDWLRQDOPRUWDOLW\LPSURYHPHQWXVLQJRIVFDO03 7DUJHW 5HDO $VVHW&ODVV $OORFDWLRQ 5HWXUQ 86(TXLW\/DUJH&DS   86(TXLW\0LG&DS   86(TXLW\6PDOO&DS   ,QWHUQDWLRQDO(TXLW\   (PHUJLQJ0DUNHW(TXLW\   5(,7V   6KRUWWHUP%RQG   ,QWHUPHGLDWHWHUP%RQG   +LJK<LHOG%RQG   &DVKDQG(TXLYDOHQWV   7RWDO   82 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 3$565(7,5(0(17(1+$1&(0(173/$1 &217,18('   Changes in the Net Pension Asset  7KHIROORZLQJWDEOHVKRZVWKHFKDQJHVLQQHWSHQVLRQDVVHWUHFRJQL]HGRYHUWKHPHDVXUHPHQWSHULRG    Sensitivity of the Net Pension Asset to Changes in the Discount Rate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¶5HWLUHH%HQHILW7UXVW &(5%7 DQDJHQWPXOWLSOHHPSOR\HUGHILQHGEHQHILWKHDOWKFDUHSODQ DGPLQLVWHUHG E\ WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶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¶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¶V ILGXFLDU\ QHW SRVLWLRQ ZDV SURMHFWHG WR EH DYDLODEOHWRPDNHDOOSURMHFWHG23(%SD\PHQWVIRUFXUUHQWDFWLYHDQGLQDFWLYHHPSOR\HHVDQGEHQHILFLDULHV 7KHUHIRUHWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQ23(%SODQLQYHVWPHQWVZDVDSSOLHGWRDOOSHULRGVRISURMHFWHG EHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDO23(%OLDELOLW\  &KDQJHVLQWKH23(%$VVHW  7KHFKDQJHVLQWKHQHW23(%OLDELOLW\DVVHWIRUWKH3ODQDUHDVIROORZV   6HQVLWLYLW\RIWKH1HW23(%$VVHWWR&KDQJHVLQWKH'LVFRXQW5DWH 7KHIROORZLQJSUHVHQWVWKHQHW23(%OLDELOLW\ DVVHW RIWKH&LW\LILWZHUHFDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLVRQH SHUFHQWDJHSRLQWORZHURURQHSHUFHQWDJHSRLQWKLJKHUWKDQWKHFXUUHQWUDWHIRUPHDVXUHPHQWSHULRGHQGHG -XQH    7RWDO23(%/LDELOLW\ D 3ODQ)LGXFLDU\1HW 3RVLWLRQ E 1HW3HQVLRQ23(% $VVHW  F D  E %DODQFHDW-XQH PHDVXUHPHQWGDWH     &KDQJHV5HFRJQL]HGIRUWKH0HDVXUHPHQW3HULRG 6HUYLFH&RVW    ,QWHUHVWRQWKH7RWDO3HQVLRQ/LDELOLW\    &KDQJHVLQDVVXPSWLRQV      1HW,QYHVWPHQW,QFRPH     %HQHILW3D\PHQWVLQFOXGLQJ5HIXQGVRI(PSOR\HH &RQWULEXWLRQV      $GPLQLVWUDWLYH([SHQVHV     1HW&KDQJHV'XULQJ       %DODQFHDW-XQH PHDVXUHPHQWGDWH     ,QFUHDVH 'HFUHDVH 'LVFRXQW5DWH  &XUUHQW'LVFRXQW 5DWH  'LVFRXQW5DWH  3ODQ V1HW23(%/LDELOLW\ $VVHWV       'LVFRXQW5DWH 86 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 27+(53267(03/2<0(17%(1(),76 &217,18('   6HQVLWLYLW\RIWKH1HW23(%$VVHWWR&KDQJHVLQWKH+HDOWK&DUH&RVW7UHQG5DWHV  7KHIROORZLQJSUHVHQWVWKHQHW23(%OLDELOLW\ DVVHW RIWKH&LW\LILWZHUHFDOFXODWHGXVLQJKHDOWKFDUHFRVWWUHQG UDWHVWKDWDUHRQHSHUFHQWDJHSRLQWORZHURURQHSHUFHQWDJHSRLQWKLJKHUWKDQWKHFXUUHQWUDWHIRUPHDVXUHPHQW SHULRGHQGHG-XQH   23(%3ODQ)LGXFLDU\1HW3RVLWLRQ &(5%7LVVXHVDSXEOLFO\DYDLODEOHILQDQFLDOUHSRUWWKDWLQFOXGHVILQDQFLDOVWDWHPHQWVDQGUHTXLUHGVXSSOHPHQWDU\ LQIRUPDWLRQ  23(%([SHQVHDQG'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV5HODWHGWR23(%  )RUWKHILVFDO\HDUHQGHG-XQHWKH&LW\UHFRJQL]HG23(%LQFRPHRI$VRI-XQH WKH&LW\UHSRUWHGGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWR23(%IURPWKHIROORZLQJVRXUFHV   2WKHUDPRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWR23(%ZLOOEHUHFRJQL]HGDVH[SHQVHDV IROORZV    'HFUHDVHWR +HDOWKFDUH7UHQG $VVXPSWLRQ &XUUHQW +HDOWKFDUH7UHQG $VVXPSWLRQ ,QFUHDVHWR +HDOWKFDUH7UHQG $VVXPSWLRQ 3ODQ V1HW23(%/LDELOLW\ $VVHWV       +HDOWKFDUH7UHQG5DWH 'HIHUUHG2XWIORZV RI5HVRXUFHV 'HIHUUHG,QIORZV RI5HVRXUFHV 23(%FRQWULEXWLRQVVXEVHTXHQWWRPHDVXUHPHQW GDWH   'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDO H[SHULHQFHV   &KDQJHVRIDVVXPSWLRQV   1HWGLIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDO HDUQLQJVRQ23(%SODQLQYHVWPHQWV   7RWDO   )LVFDO 'HIHUUHG 3HULRG(QGHG 2XWIORZV ,QIORZV -XQH RI5HVRXUFHV               7KHUHDIWHU   7RWDO   87 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 1RWHVWRWKH)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH   127( 6800$5<',6&/2685(2)6(/),1685$1&(&217,1*(1&,(6  7KH&LW\DQGWKH)LUH'LVWULFWDUHH[SRVHGWRYDULRXVULVNVRIORVVUHODWHGWRWRUWVWKHIWRIGDPDJHWRDQGGHVWUXFWLRQ RI DVVHWV HUURUV DQG RPLVVLRQV DQG QDWXUDO GLVDVWHUV IRU ZKLFK WKH &LW\ DQG )LUH 'LVWULFW REWDLQV LQVXUDQFH FRYHUDJH  7KH&LW\DQGWKH)LUH'LVWULFWDUHDPHPEHUVRIWKH&DOLIRUQLD,QWHUJRYHUQPHQWDO5LVN$XWKRULW\ &,5$ DMRLQW SRZHUVDXWKRULW\ZKLFKSURYLGHVMRLQWSURWHFWLRQSURJUDPVIRUSXEOLFHQWLWLHVFRYHULQJDXWRPRELOHJHQHUDOOLDELOLW\ HUURUVDQGRPLVVLRQORVVHVZRUNHUV FRPSHQVDWLRQDQGSURSHUW\FODLPV8QGHUWKHSURJUDPWKH&LW\DQG)LUH 'LVWULFW KDYH D  UHWHQWLRQ OLPLW IRU OLDELOLW\ ZKLFK LV VLPLODU WR D GHGXFWLEOH ZLWK WKH $XWKRULW\ EHLQJ UHVSRQVLEOHIRUORVVHVDERYHWKDWDPRXQWXSWR7KH$XWKRULW\FDUULHVDQH[FHVVFRPPHUFLDOOLDELOLW\ SROLF\RILQH[FHVVRILWVUHWHQWLRQOLPLWWRFRYHUORVVHVWKURXJKDIILOLDWHGULVNPDQDJHPHQW DXWKRULWLHV7KH$XWKRULW\DOVRSURYLGHVPLOOLRQGROODUVDJJUHJDWHSHURFFXUUHQFHSURSHUW\FRYHUDJHWRLWV PHPEHUVZLWKVXFKFRYHUDJHSURYLGHGE\SXUFKDVHGLQVXUDQFH  /LDELOLWLHVRIWKH&LW\DQGWKH)LUH'LVWULFWDUHUHSRUWHGZKHQLWLVSUREDEOHWKDWDORVVKDVRFFXUUHGDQGWKHDPRXQW RIWKHORVVFDQEHUHDVRQDEO\HVWLPDWHG/LDELOLWLHVLQFOXGHDQDPRXQWIRUFODLPVWKDWKDYHEHHQLQFXUUHGEXWQRW UHSRUWHG O%15V 7KHUHVXOWRIWKHSURFHVVWRHVWLPDWHWKHFODLPVOLDELOLW\LVQRWDQH[DFWDPRXQWDVLWGHSHQGVRQ PDQ\FRPSOH[IDFWRUVVXFKDVLQIODWLRQFKDQJHVLQOHJDOGRFWULQHVDQGGDPDJHDZDUGV$FFRUGLQJO\FODLPVDUH UHHYDOXDWHGSHULRGLFDOO\WRFRQVLGHUWKHHIIHFWVRIHFRQRPLFDQGVRFLDOIDFWRUV7KHHVWLPDWHRIWKHFODLPVOLDELOLW\ DOVR LQFOXGHV DPRXQWV IRU LQFUHPHQWDO FODLP DGMXVWPHQW H[SHQVHV UHODWHG WR VSHFLILF FODLPV DQG RWKHU FODLP DGMXVWPHQWH[SHQVHVUHJDUGOHVVRIZKHWKHUDOORFDWHGWRVSHFLILFFODLPV(VWLPDWHGUHFRYHULHVIRUH[DPSOHIURP VDOYDJHRUVXEURJDWLRQDUHDQRWKHUFRPSRQHQWRIWKHFODLPVOLDELOLW\HVWLPDWH  7KH&LW\DQG)LUH'LVWULFWKDYHDUHWHQWLRQOLPLWIRUZRUNHUVFRPSHQVDWLRQ7KH$XWKRULW\FRYHUVZRUNHUV  FRPSHQVDWLRQ FODLPV LQ H[FHVV RI WKH  UHWHQWLRQ OLPLW XS WR  7KH /RFDO $JHQF\ :RUNHUV &RPSHQVDWLRQ([FHVV3RROSURYLGHVH[FHVVFRYHUDJHWRVWDWXWRU\OLPLWV7KH&LW\SD\VDQDQQXDOSUHPLXPWRWKH $XWKRULW\DQGPD\VKDUHLQDQ\VXUSOXVUHYHQXHVRUPD\EHUHTXLUHGWRSD\DGGLWLRQDODVVHVVPHQWVEDVHGXSRQ WKH$XWKRULW\ VRSHUDWLQJUHVXOWV  (IIHFWLYH-XO\WKH)LUH'LVWULFWEHFDPHDPHPEHURIWKH3XEOLF$JHQF\5LVN6KDULQJ$XWKRULW\RI&DOLIRUQLD $XWKRULW\  IRU LWV ZRUNHUV FRPSHQVDWLRQ LQVXUDQFH DQG FRQFXUUHQWO\ VHSDUDWHG IURP WKH 3XEOLF $JHQF\ 6HOI,QVXUDQFH6\VWHP 3$6,6 RI6DQ%HUQDUGLQR&RXQW\7KH)LUH'LVWULFWZLOOPDLQWDLQUHVHUYHVWRFRYHULWV -XQHHVWLPDWHGFODLPVOLDELOLW\IRUZRUNHUVFRPSHQVDWLRQXSWRLWVVHOILQVXUHGUHWHQWLRQRI &ODLPVLQH[FHVVRIWKHVHOILQVXUHGDPRXQWZLOOEHFRYHUHGE\&DOLIRUQLD6WDWH$VVRFLDWLRQRI&RXQWLHV([FHVV ,QVXUDQFH$XWKRULW\$OOZRUNHUVFRPSHQVDWLRQFRYHUDJHIURP-XO\IRUZDUGZLOOEHSURYLGHGE\WKH$XWKRULW\ 8QGHUWKHSURJUDPWKH)LUH'LVWULFWKDVDUHWHQWLRQOLPLWIRUZRUNHUVFRPSHQVDWLRQ7KH$XWKRULW\FRYHUV ZRUNHUVFRPSHQVDWLRQFODLPVLQH[FHVVRIWKHUHWHQWLRQOLPLWXSWR7KH/RFDO$JHQF\:RUNHUV &RPSHQVDWLRQ([FHVV3RROSURYLGHVH[FHVVFRYHUDJHWRVWDWXWRU\OLPLWV7KH)LUH'LVWULFWSD\VDQDQQXDOSUHPLXP WRWKH$XWKRULW\DQGPD\VKDUHLQDQ\VXUSOXVUHYHQXHVRUPD\EHUHTXLUHGWRSD\DGGLWLRQDODVVHVVPHQWVEDVHG XSRQWKH$XWKRULW\¶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³WKH%LOO´ WKDWSURYLGHVIRUWKH GLVVROXWLRQRIDOOUHGHYHORSPHQWDJHQFLHVLQWKH6WDWHRI&DOLIRUQLD7KLVDFWLRQLPSDFWHGWKHUHSRUWLQJHQWLW\RIWKH &LW\RI5DQFKR&XFDPRQJDWKDWSUHYLRXVO\KDGUHSRUWHGDUHGHYHORSPHQWDJHQF\ZLWKLQWKHUHSRUWLQJHQWLW\RIWKH &LW\DVDEOHQGHGFRPSRQHQWXQLW  7KH%LOOSURYLGHVWKDWXSRQGLVVROXWLRQRIDUHGHYHORSPHQWDJHQF\HLWKHUWKHFLW\RUDQRWKHUXQLWRIORFDOJRYHUQPHQW ZLOODJUHHWRVHUYHDVWKH³VXFFHVVRUDJHQF\´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¶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¶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±WKH6HQLRU/RDQ7KH ,QGHQWXUHGRHVQRWSHUPLWDGGLWLRQDOVHQLRUREOLJDWLRQV7KH$JHQF\LVSHUPLWWHGXQGHUWKH,QGHQWXUHWRLQFXU DGGLWLRQDOREOLJDWLRQV±3DULW\%RQGV±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³5377)´  HVWDEOLVKHGXQGHUWKH'LVVROXWLRQ$FWGHILQHGEHORZEXWH[FOXGHWKRVHDPRXQWVZKLFKZHUHSULRUWRWKH 'LVVROXWLRQ$FWUHTXLUHGWREHGHSRVLWHGLQWRWKH)RUPHU$JHQF\¶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³5377)´ HVWDEOLVKHGXQGHUWKH 'LVVROXWLRQ$FWEXWH[FOXGHWKRVHDPRXQWVZKLFKZHUHSULRUWRWKH'LVVROXWLRQ$FWUHTXLUHGWREHGHSRVLWHG LQWRWKH)RUPHU$JHQF\¶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¶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¶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enefit Changes  7KH ILJXUHV DERYH JHQHUDOO\ LQFOXGH DQ\ OLDELOLW\ LPSDFW WKDW PD\ KDYH UHVXOWHG IURP YROXQWDU\ EHQHILW FKDQJHV WKDW RFFXUUHG RQRUEHIRUHWKHPHDVXUHPHQWGDWH+RZHYHURIIHUVRI7ZR<HDUV$GGLWLRQDO6HUYLFH&UHGLW DND*ROGHQ+DQGVKDNHV WKDWRFFXUUHGDIWHUWKH YDOXDWLRQGDWHDUHQRWLQFOXGHGLQWKHILJXUHVDERYHXQOHVVWKHOLDELOLW\LPSDFWLVGHHPHGWREHPDWHULDOE\WKHSODQDFWXDU\ Changes of Assumptions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he proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements. Benefit Changes  7KH ILJXUHV DERYH LQFOXGH DQ\ OLDELOLW\ LPSDFW WKDW PD\ KDYH UHVXOWHG IURP YROXQWDU\ EHQHILW FKDQJHV WKDW RFFXUUHG DIWHU WKH -XQH   YDOXDWLRQ +RZHYHU RIIHUV RI 7ZR <HDUV $GGLWLRQDO 6HUYLFH &UHGLW DND *ROGHQ +DQGVKDNHV WKDW RFFXUUHG DIWHU WKH -XQH   YDOXDWLRQ GDWH DUH QRW LQFOXGHG LQ WKH ILJXUHV DERYH XQOHVV WKH OLDELOLW\ LPSDFW LV GHHPHG WR EH PDWHULDOE\WKHSODQDFWXDU\ Changes of Assumptions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he proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements. Benefit Changes  7KH ILJXUHV DERYH LQFOXGH DQ\ OLDELOLW\ LPSDFW WKDW PD\ KDYH UHVXOWHG IURP YROXQWDU\ EHQHILW FKDQJHV WKDW RFFXUUHG DIWHU WKH -XQH   YDOXDWLRQ +RZHYHU RIIHUV RI 7ZR <HDUV $GGLWLRQDO 6HUYLFH &UHGLW DND *ROGHQ +DQGVKDNHV WKDW RFFXUUHG DIWHU WKH -XQHYDOXDWLRQGDWHDUHQRWLQFOXGHGLQWKHILJXUHVDERYHXQOHVVWKHOLDELOLW\LPSDFWLVGHHPHGWREHPDWHULDOE\WKHSODQDFWXDU\ Changes of Assumptions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hanges of Assumptions  ,Q  0RUWDOLW\ LPSURYHPHQW VFDOH ZDV XSGDWHG WR 6FDOH 03 ,Q  WKH GLVFRXQW UDWH ZDV XSGDWHG IURP  WR  WKH GHPRJUDSKLF DVVXPSWLRQV ZHUH XSGDWHG WR &DO3(56  ([SHULHQFH 6WXG\ DQG WKH PRUWDOLW\ LPSURYHPHQW VFDOH ZDV XSGDWHG WR 6RFLHW\RI$FWXDULHV6FDOH03 Benefit Changes  ,Q  HPSOR\HU SDLG PHPEHU FRQWULEXWLRQV IRU )LUH 0DQDJHPHQW HPSOR\HH JURXS DGGHG 7KHUH ZHUH QR EHQHILW FKDQJHV LQ  ,Q WKH%HQHILW)DFWRUXVHGWRGHWHUPLQHWKH&LW\0DQDJHU VEHQHILWZDVFKDQJHGWREHJLQQLQJDWDJHLQVWHDGRIDJH 112                                                                                                                                                        113 THIS PAGE INTENTIONALLY LEFT BLANK 114 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 6FKHGXOHVRI3ODQ&RQWULEXWLRQV 3$565HWLUHPHQW(QKDQFHPHQW3ODQ $VRI-XQHIRUWKH/DVW7HQ)LVFDO<HDUV )LVFDO<HDU $FWXDULDOO\ $FWXDO &RQWULEXWLRQ &RQWULEXWLRQDVD (QGLQJ 'HWHUPLQHG (PSOR\HU 'HILFLHQF\ (PSOR\HH RI(PSOR\HH -XQH &RQWULEXWLRQ &RQWULEXWLRQV ([FHVV 3D\UROO 3D\UROO                                                             1RWHWR6FKHGXOH 9DOXDWLRQ'DWH-XQH 0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQUDWHV $FWXDULDOFRVWPHWKRG (QWU\DJHQRUPDOLQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI*$6% 'LVFRXQWUDWH  ,QIODWLRQ  $VVHWYDOXDWLRQPHWKRG 0DUNHWYDOXHRIDVVHWV 0RUWDOLW\%DVHG RQ DVVXPSWLRQV IRU 3XEOLF $JHQF\ 0LVFHOODQHRXV (PSOR\HHV SXEOLVKHG LQ WKH  &DO3(56 ([SHULHQFH 6WXG\7KHVHWDEOHVLQFOXGHHQHUDWLRQDOPRUWDOLW\LPSURYHPHQWXVLQJRIVFDOH03 115 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 6FKHGXOHRI&KDQJHVLQ1HW23(%/LDELOLW\DQG5HODWHG5DWLRV $VRI-XQHIRUWKH/DVW7HQ)LVFDO<HDUV     0HDVXUHPHQW'DWH    727$/23(%/,$%,/,7< 6HUYLFHFRVW    ,QWHUHVWRQWRWDO23(%OLDELOLW\   &KDQJHVRIEHQHILWWHUPV    &KDQJHVRIDVVXPSWLRQV        'LIIHUHQFHEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH     %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIHPSOR\HH FRQWULEXWLRQV         1HWFKDQJHLQWRWDO23(%OLDELOLW\       7RWDO23(%OLDELOLW\EHJLQQLQJ    7RWDO23(%OLDELOLW\HQGLQJ D     3/$1),'8&,$5<1(7326,7,21 &RQWULEXWLRQVHPSOR\HU    1HWLQYHVWPHQWLQFRPH     %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIHPSOR\HH FRQWULEXWLRQV         $GPLQLVWUDWLYHH[SHQVH         1HWFKDQJHLQILGXFLDU\QHWSRVLWLRQ       3ODQILGXFLDU\QHWSRVLWLRQEHJLQQLQJ    3ODQILGXFLDU\QHWSRVLWLRQHQGLQJ E     1HW23(%OLDELOLW\ DVVHW  D  E         3ODQILGXFLDU\QHWSRVLWLRQDVDSHUFHQWDJHRIWKH WRWDO23(%OLDELOLW\     &RYHUHGHPSOR\HHSD\UROO    3ODQQHW23(%OLDELOLW\ DVVHW DVDSHUFHQWDJHRI FRYHUHGHPSOR\HHSD\UROO     1RWHVWR6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\DQG5HODWHG5DWLRV ,QWKH$&$([FLVH7D[ZDVUHPRYHGIURPOLDELOLWLHV ,QWKHIROORZLQJFKDQJHVRIDVVXPSWLRQVZHUHPDGH 'LVFRXQWUDWHZDVXSGDWHGEDVHGRQQHZHUFDSLWDOPDUNHWDVVXPSWLRQV 'HFUHDVHGPHGLFDOWUHQGUDWHIRU.DLVHU6HQLRU$GYDQWDJH 1HZUDWHVIURP&DO3(56([SHULHQFH6WXG\ 8SGDWHGDVVXPSWLRQIRUPHGLFDOHOLJLEOHLPSOLHGVXEVLG\ 0RUWDOLW\LPSURYHPHQWVFDOHZDVXSGDWHGWR6FDOH03 1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only seven years are shown. ,QIODWLRQ DVVXPSWLRQ GURSSHG IURP  WR  ZKLFK GURSSHG WKH GLVFRXQW UDWH PHGLFDO WUHQG DQG DJJUHJDWH SD\UROO LQFUHDVH E\  Benefit Changes 1RQH Changes of Assumptions 1RQH Changes in assumptions: 116                                                                   117 THIS PAGE INTENTIONALLY LEFT BLANK 118 &,7<2)5$1&+2&8&$021*$&$/,)251,$ 6FKHGXOHVRI3ODQ&RQWULEXWLRQV 23(% $VRI-XQHIRUWKH/DVW7HQ)LVFDO<HDUV &RQWULEXWLRQDVD )LVFDO<HDU $FWXDULDOO\ $FWXDO &RQWULEXWLRQ RI (QGLQJ 'HWHUPLQHG (PSOR\HU 'HILFLHQF\ (PSOR\HH (PSOR\HH -XQH &RQWULEXWLRQ &RQWULEXWLRQV ([FHVV 3D\UROO 3D\UROO                                          0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQV 9DOXDWLRQ'DWH -XQH $FWXDULDO&RVW0HWKRG $PRUWL]DWLRQ9DOXDWLRQ0HWKRG3HULRG $VVHW9DOXDWLRQ0HWKRG 'LVFRXQW5DWH  *HQHUDO,QIODWLRQ  3D\UROO*URZWK SHUDQQXPLQDJJUHJDWH 0RUWDOLW\'LVDELOLW\7HUPLQDWLRQ 5HWLUHPHQW 0HGLFDO7UHQG 2WKHU$VVXPSWLRQV &DO3(56([SHULHQFH6WXG\ 0RUWDOLW\,PSURYHPHQW0RUWDOLW\SURMHFWHGIXOO\JHQHUDWLRQDOZLWK6FDOH03  +LVWRULFDO LQIRUPDWLRQ LV UHTXLUHG RQO\ IRU WKH PHDVXUHPHQW SHULRGV IRU ZKLFK *$6%  LV DSSOLFDEOH )LVFDO <HDU  ZDV WKH ILUVW \HDU RI LPSOHPHQWDWLRQ )XWXUH \HDUV LQIRUPDWLRQ ZLOO EH GLVSOD\HG XS WR  \HDUVDVLQIRUPDWLRQEHFRPHVDYDLODEOH (QWU\$JH1RPDO /HYHOSHUFHQWRISD\RYHUD\HDUIL[HG ,QYHVWPHQWJDLQVORVVHVVSUHDGRYHU\HDUUROOLQJSHULRG 3(0+&$ PLQLPXP LQFUHDVHV RI  DQQXDOO\ +HDOWKFDUH SDUWLFLSDWLRQ IRU IXWXUH UHWLUHHV DW  IRU 7LHU  DQGLI7LHUIRUFXUUHQWO\FRYHUHGDQGIRURWKHUV 1RQ0HGLFDUHIRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ 0HGLFDUH 1RQ.DLVHU IRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ 0HGLFDUH .DLVHU IRUGHFUHDVLQJWRDQXOWLPDWHUDWHRILQ 119 &,7<2)5$1&+2&8&$021*$ 1RQ0DMRU*RYHUQPHQWDO)XQGV  6SHFLDO5HYHQXH)XQGV  6SHFLDO 5HYHQXH )XQGV DFFRXQW IRU UHYHQXHV GHULYHG IURP VSHFLILF VRXUFHV ZKLFK DUH UHTXLUHG E\ ODZ RU DGPLQLVWUDWLYHUHJXODWLRQWREHDFFRXQWHGIRULQDVHSDUDWHGIXQG)XQGVLQFOXGHGDUH  *DV7D[)XQG(VWDEOLVKHGWRDFFRXQWIRUWKHUHFHLSWVDQGGLVEXUVHPHQWVRIWKHVWDWHJDVWD[DOORFDWLRQVWRIXQG URDGFRQVWUXFWLRQDQGPDLQWHQDQFHRIWKH&LW\QHWZRUNV\VWHP  %HDXWLILFDWLRQ)XQG(VWDEOLVKHGWRDFFRXQWIRUUHFHLSWVIURPGHYHORSPHQWSURMHFWVWRSURYLGHSURSHUODQGVFDSLQJ DQGLUULJDWLRQV\VWHPVDIWHUWKHFRQVWUXFWLRQRISDUNZD\DQGPHGLDQLPSURYHPHQWV  /LJKWLQJ'LVWULFW)XQG±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¶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± (VWDEOLVKHG WR DFFRXQW IRU WKH UHFHLSWV DQG GLVEXUVHPHQWV RI 6%  7UDGH &RUULGRU (QKDQFHPHQW 3URJUDP 7&(3  IXQGV ZKLFK SURYLGH IRU WKH GHVLJQ DQG FRQVWUXFWLRQ RI WKH (WLZDQGD *UDGH 6HSDUDWLRQ3URMHFW  3XEOLF$UW7UXVW)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKHUHFHLSWVRISXEOLFDUWLQOLHXIHHVUHVWULFWHGIRUWKHVHOHFWLRQ SXUFKDVHSODFHPHQWDQGPDLQWHQDQFHRIDUWLQVWDOOHGE\WKH&LW\RURQ&LW\SURSHUW\  6WDWH*UDQWV)XQG±(VWDEOLVKHGWRDFFRXQWIRUJUDQWIXQGUHFHLYHGIURPWKH6WDWHRI&DOLIRUQLDDQGWKHDOORZDEOH H[SHQGLWXUHV IRU WKRVH SURJUDPV 7KH 6WDWH JUDQW SURJUDPV UHSRUWHG LQ WKLV VSHFLDO UHYHQXH IXQG DUH QRQUHFXUULQJ  )HGHUDO *UDQWV )XQG ±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±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¶VYHKLFOHV  &RPSXWHU(TXLSPHQW7HFKQRORJ\5HSODFHPHQW(VWDEOLVKHGWRDFFRXQWIRUWKHDFFXPXODWLRQRIUHVRXUFHVDQG WKHFRVWVDVVRFLDWHGZLWKUHSODFLQJWKH&LW\¶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±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW1R VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDOLQWHUHVW SD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW6RXWK(WLZDQGD)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV 'LVWULFW1RVSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW5DQFKR&XFDPRQJD&RUSRUDWH3DUN)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH &RPPXQLW\)DFLOLWLHV'LVWULFW1RVSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDO SULQFLSDODQGVHPLDQQXDOLQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW5DQFKR6XPPLW)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV 'LVWULFW1RVSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW6HULHV$)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW 1R6HULHV$VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW6HULHV%)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW 1R6HULHV%VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW6HULHV$)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW 1R6HULHV$VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW6HULHV%)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW 1R6HULHV%VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDO LQWHUHVWSD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW)XQG±(VWDEOLVKHGWRDFFRXQWIRUWKH&RPPXQLW\)DFLOLWLHV'LVWULFW1R VSHFLDOWD[UHYHQXHVZKLFKDUHUHVWULFWHGUHSD\PHQWRIWKHDQQXDOSULQFLSDODQGVHPLDQQXDOLQWHUHVW SD\PHQWRQWKHERQGV  &RPPXQLW\)DFLOLWLHV'LVWULFW)XQG±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¶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p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