$38,500,000** mt.diablounifiedschooldistrict* … · 2018. 8. 17. · $38,500,000**...

PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 25, 2016

NEW ISSUE - FULL BOOK-ENTRY RATINGS: Fitch: “AAA” Moody’s: “Aa2” See “RATINGS” herein.

In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income and earnings. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATTERS."

$38,500,000* MT. DIABLO UNIFIED SCHOOL DISTRICT

(Contra Costa County, California) General Obligation Bonds 2010 Election, Series G

Dated: Date of Delivery Due: August 1, as shown on inside cover Cover Page. This cover page contains information for quick reference only. It is not a summary of all the

provisions of the Bonds. Investors must read the entire official statement to obtain information essential in making an informed investment decision.

Authority and Purpose. The captioned General Obligation Bonds (the “Bonds”) are being issued by the Mt. Diablo Unified School District (the “District”) pursuant to certain provisions of the California Government Code and a resolution of the Board of Education of the District adopted on September 26, 2016 (the “Bond Resolution”). The Bonds were authorized at an election of the registered voters of the District held on June 8, 2010 which authorized the issuance of general obligation bonds for the purpose of financing school facility projects. The Bonds are the seventh and final series of bonds to be issued pursuant to the authority of the June 8, 2010 election. See “THE BONDS – Authority for Issuance” and “THE FINANCING PLAN” herein.

Security. The Bonds are general obligations of the District. The Board of Supervisors of Contra Costa County has the power and is obligated to annually levy ad valorem taxes upon all property subject to taxation by the District without limitation of rate or amount (except certain personal property which is taxable at limited rates) for the payment of principal of and interest on the Bonds. The District has other outstanding issues of general obligation bonds and refunding general obligation bonds which are similarly payable from ad valorem taxes levied on parcels in the District and will be payable on a pro rata basis with the Bonds. See “SECURITY FOR THE BONDS.”

Payments. Interest on the Bonds accrues from the date of delivery and is payable semiannually on February 1 and August 1 of each year, commencing February 1, 2017, by check, draft or wire mailed to the person in whose name the Bond is registered. Payments of principal and interest on the Bonds will be paid by U.S. Bank National Association, San Francisco, California, as paying agent for the Bonds (the “Paying Agent”), to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds. See “THE BONDS – Description of the Bonds.”

Redemption. The Bonds are subject to optional and, at bidder’s option, mandatory sinking fund redemption prior to maturity as described herein. See “THE BONDS – Optional Redemption” and “– Mandatory Sinking Fund Redemption.”

Book-Entry Only. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (“DTC”). Purchasers will not receive physical certificates representing their interests in the Bonds. See “APPENDIX F – Book-Entry-Only System.”

MATURITY SCHEDULE (See inside front cover)

The Bonds will be sold and awarded pursuant to a competitive bidding process to be held on Tuesday,

November 1, 2016, as set forth in an Official Notice of Sale with respect to the Bonds. The Bonds are offered when, as and if issued, subject to the approval as to their legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters also will be passed upon for the District by Jones Hall, A Professional Law Corporation, San Francisco, California, as Disclosure Counsel. It is anticipated that the Bonds in definitive form will be available for delivery to Cede & Co., as nominee of The Depository Trust Company, on or about November 16, 2016, in New York, New York. The date of this Official Statement is ____ __, 2016. *Preliminary;; subject to change.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the

time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be

any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

MATURITY SCHEDULE*



Maturity Date (August 1)

Principal Amount* Interest Rate Yield

Price CUSIP†

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

* Preliminary;; subject to change. Term bonds may be designated at bidder’s option. † Copyright 2016, American Bankers Association. CUSIP data herein are provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc., and are provided for convenience of reference only. The District does not assume any responsibility for the accuracy of these CUSIP data.

GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT

Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract between any bond owner and the District or the Bond Purchaser.

No Offering Except by This Official Statement. No dealer, broker, salesperson or other person has been authorized by the District or the Bond Purchaser to give any information or to make any representations other than those contained in this Official Statement and, if given or made, such other information or representation must not be relied upon as having been authorized by the District or the Bond Purchaser.

No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.

Information in Official Statement. The information set forth in this Official Statement has been furnished by the District and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness.

Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the District in any press release and in any oral statement made with the approval of an authorized officer of the District or any other entity described or referenced herein, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,” “expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the District or any other entity described or referenced herein since the date hereof.

Involvement of Purchaser. The following statement has been included in this Official Statement on behalf of the Bond Purchaser: The Bond Purchaser has reviewed the information in this Official Statement in accordance with, and as a part of, their responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Bond Purchaser does not guarantee the accuracy or completeness of such information.

Stabilization of and Changes to Offering Prices. The Bond Purchaser may overallot or take other steps that stabilize or maintain the market prices of the Bonds at levels above that which might otherwise prevail in the open market. If commenced, the Bond Purchaser may discontinue such market stabilization at any time. The Bond Purchaser may offer and sell the Bonds to certain securities dealers, dealer banks and banks acting as agent at prices lower than the public offering prices stated on the inside cover page of this Official Statement, and those public offering prices may be changed from time to time by the Bond Purchaser.

Document Summaries. All summaries of the Bond Resolution or other documents referred to in this Official Statement are made subject to the provisions of such documents and qualified in their entirety to reference to such documents, and do not purport to be complete statements of any or all of such provisions.

No Securities Laws Registration. The Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon exceptions therein for the issuance and sale of municipal securities. The Bonds have not been registered or qualified under the securities laws of any state.

Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, give rise to any implication that there has been no change in the affairs of the District, the County, the other parties described in this Official Statement, or the condition of the property within the District since the date of this Official Statement.

Website. The District maintains a website. However, the information presented on the website is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds.

MT. DIABLO UNIFIED SCHOOL DISTRICT

BOARD OF EDUCATION

Cheryl Hansen, President Debra Mason, Vice President Brian Lawrence, Member Linda Mayo, Member Barbara Oaks, Member

DISTRICT STAFF

Nellie Meyer, Ed.D., Superintendent Wayne Oetken, Interim Chief Business Officer

Nance Juner, Director of Budget and Fiscal Services

PROFESSIONAL SERVICES

FINANCIAL ADVISOR

Dale Scott & Company Inc. San Francisco, California

BOND COUNSEL AND DISCLOSURE COUNSEL

Jones Hall, A Professional Law Corporation San Francisco, California

PAYING AGENT, TRANSFER AGENT, and BOND REGISTRAR

U.S. Bank National Association San Francisco, California

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TABLE OF CONTENTS Page

INTRODUCTION .................................................................................................................................................... 1 The District ......................................................................................................................................................... 1 Sources of Payment for the Bonds .................................................................................................................... 1 Purpose of Issue ................................................................................................................................................ 1 Authority for Issuance ........................................................................................................................................ 2 Description of the Bonds .................................................................................................................................... 2 Legal Matters ..................................................................................................................................................... 2 Tax Matters ........................................................................................................................................................ 2 Offering and Delivery of the Bonds .................................................................................................................... 2 Continuing Disclosure ........................................................................................................................................ 2 Other Information ............................................................................................................................................... 3

THE FINANCING PLAN ......................................................................................................................................... 4 SOURCES AND USES OF FUNDS ....................................................................................................................... 4 THE BONDS ........................................................................................................................................................... 5 Description of the Bonds .................................................................................................................................... 5 Paying Agent ...................................................................................................................................................... 5 Optional Redemption ......................................................................................................................................... 6 Mandatory Sinking Fund Redemption ................................................................................................................ 6 Selection of Bonds for Redemption .................................................................................................................... 6 Notice of Redemption ......................................................................................................................................... 7 Partial Redemption of Bonds ............................................................................................................................. 7 Right to Rescind Notice of Redemption ............................................................................................................. 7 Registration, Transfer and Exchange of Bonds ................................................................................................. 7 Defeasance ........................................................................................................................................................ 8 Book-Entry-Only System .................................................................................................................................... 9

APPLICATION OF PROCEEDS OF THE BONDS ................................................................................................. 9 Building Fund ..................................................................................................................................................... 9 Debt Service Fund ........................................................................................................................................... 10 Investment of Proceeds of Bonds .................................................................................................................... 10

SECURITY FOR THE BONDS ............................................................................................................................. 11 Ad Valorem Taxes ............................................................................................................................................ 11 Debt Service Fund ........................................................................................................................................... 12 Not a County Obligation ................................................................................................................................... 12

DEBT SERVICE SCHEDULE .............................................................................................................................. 13 PROPERTY TAXATION ....................................................................................................................................... 15 Ad Valorem Property Taxation ......................................................................................................................... 15 Assessed Valuations ........................................................................................................................................ 15 Appeals of Assessed Value ............................................................................................................................. 19 Property Tax Collections .................................................................................................................................. 20 Largest Property Owners ................................................................................................................................. 21 Overlapping Debt Obligations .......................................................................................................................... 22

CONTRA COSTA COUNTY INVESTMENT POOL .............................................................................................. 24 CONTINUING DISCLOSURE .............................................................................................................................. 24 CERTAIN LEGAL MATTERS ............................................................................................................................... 25 Absence of Material Litigation .......................................................................................................................... 25 Legal Opinion ................................................................................................................................................... 25

TAX MATTERS .................................................................................................................................................... 25 RATINGS .............................................................................................................................................................. 27 COMPETITIVE SALE OF BONDS ....................................................................................................................... 27 COMPENSATION OF PROFESSIONALS ........................................................................................................... 27 ADDITIONAL INFORMATION .............................................................................................................................. 27 EXECUTION ......................................................................................................................................................... 28 APPENDIX A - Audited Financial Statements of the District For Fiscal Year Ending June 30, 2015 ................................................................................. A-1 APPENDIX B - General and Financial Information About the District ..................................................... B-1 APPENDIX C - General Information About the City of Concord and Contra Costa County ................... C-1 APPENDIX D - Form of Opinions of Bond Counsel ............................................................................... D-1 APPENDIX E - Form of Continuing Disclosure Certificate ...................................................................... E-1 APPENDIX F - Book-Entry Only System ................................................................................................ F-1 APPENDIX G - Contra Costa County Investment Policy and Investment Report .................................. G-1

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INTRODUCTION

This Official Statement, which includes the cover page and appendices hereto, provides

information in connection with the sale and delivery of the general obligation bonds captioned above (the “Bonds”).

This Introduction is not a summary of this Official Statement. It is only a brief description

of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

The District

The Mt. Diablo Unified School District (the “District”) is a public unified school district

located in Contra Costa County (the “County”) in the State of California (the “State”). The District was established on July 1, 1949, and is located in the northwestern portion the County. The District covers approximately 150 square miles including the cities of Concord, Pleasant Hill and Clayton, portions of the cities of Walnut Creek, Pittsburg and Martinez, and unincorporated areas of the County, including Pacheco and Bay Point, and is located approximately 30 miles northeast of San Francisco. The District provides kindergarten through twelfth grade education services in thirty-one elementary schools, nine middle schools, five high schools and six alternative schools and programs, including adult education. The District’s enrollment for fiscal year 2016-17 is budgeted at 32,043 students. For more information regarding the District and its finances, see Appendix B attached hereto. See also Appendix C hereto for demographic and other statistical information regarding the City of Concord and the County.

Sources of Payment for the Bonds

The Bonds are general obligation bonds of the District payable from ad valorem taxes.

The Board of Supervisors of the County has the power and is obligated to annually levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the District subject to taxation without limitation of rate or amount (except certain personal property which is taxable at limited rates). See “SECURITY FOR THE BONDS” and “PROPERTY TAXATION.”

Purpose of Issue

The net proceeds of the Bonds will be used to finance construction and improvements to

District facilities as approved by the voters at an election held in the District on June 8, 2010 (the “2010 Election”). See “THE FINANCING PLAN” and “APPLICATION OF PROCEEDS OF THE BONDS” herein. *Preliminary;; subject to change.

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Authority for Issuance The Bonds will be issued pursuant to the authority of the 2010 Election, certain

provisions of the Government Code of the State, commencing with Section 53506 thereof (the “Bond Law”), and pursuant to a resolution adopted by the Board of Education of the District on September 26, 2016 (the “Bond Resolution”). See “THE BONDS - Authority for Issuance” herein. Description of the Bonds

Generally. The Bonds are issued as current interest bonds and mature in the years and

in the amounts as set forth on the inside cover page hereof. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee for DTC. Purchasers will not receive physical certificates representing their interest in the Bonds. See “THE BONDS – Description of the Bonds,” “– Book-Entry Only System” and “APPENDIX F – Book-Entry Only System.”

Redemption. The Bonds are subject to optional redemption prior to maturity as

described herein. The Bonds may, at bidder’s option, be subject o mandatory sinking fund redemption as described herein. See “THE BONDS - Optional Redemption” and “- Mandatory Sinking Fund Redemption” herein.

Legal Matters

Issuance of the Bonds is subject to the approving opinion of Jones Hall, A Professional

Law Corporation, San Francisco, California, as bond counsel (“Bond Counsel”), to be delivered in substantially the form attached hereto as Appendix D. Jones Hall, A Professional Law Corporation, San Francisco, California, will also serve as disclosure counsel to the District (“Disclosure Counsel”). See “APPENDIX D – Form of Opinions of Bond Counsel.”

Tax Matters

Assuming compliance with certain covenants and provisions of the Internal Revenue

Code of 1986, as amended (the “Tax Code”), in the opinion of Bond Counsel, interest on the Bonds will not be includable in gross income for federal income tax purposes although it may be includable in the calculation for certain taxes. Also, in the opinion of Bond Counsel, interest on the Bonds will be exempt from State of California (the “State”) personal income taxes. See “TAX MATTERS” herein.

Offering and Delivery of the Bonds

The Bonds are offered when, as and if issued and received by the Bond Purchaser,

subject to approval as to the legality by Bond Counsel. It is anticipated that the Bonds will be available for delivery through the facilities of DTC on or about November 16, 2016.

Continuing Disclosure

The District has covenanted and agreed that it will comply with and carry out all of the

provisions of the Continuing Disclosure Certificate. The form of the Continuing Disclosure Certificate is included in Appendix E hereto. See also “CONTINUING DISCLOSURE” herein.

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Other Information This Official Statement speaks only as of its date, and the information contained herein

is subject to change. Copies of documents referred to herein and information concerning the Bonds are available from the Superintendent of the District at the Mt. Diablo Unified School District, 1936 Carlotta Drive, Concord, California 94519. The District may impose charges for copying, mailing and handling.

This Official Statement is not to be construed as a contract with the purchasers of the

Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The summaries and references to documents, statutes and constitutional provisions referred to herein do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each of such documents, statutes and constitutional provisions.

The information set forth herein has been obtained from official sources which are

believed to be reliable but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the District. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

END OF INTRODUCTION

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THE FINANCING PLAN

Authority. The Bonds will be issued pursuant to the authority of the 2010 Election, the Bond Law and the Bond Resolution.

Purpose. The net proceeds of the Bonds will be applied to finance school facility

improvement projects as authorized by District voters at the 2010 Election. The abbreviated form of the ballot measure, known as “Measure C”, presented to and approved by District voters at the 2010 Election was:

“To support quality education and safety for local students, and reduce impacts of State budget cuts by improving science, career and technical education facilities;; upgrading classroom instructional technology;; repairing leaky roofs;; improving safety;; maximizing energy efficiency including adding solar panels and modern air conditioning;; and repairing, replacing, equipping or modernizing other school facilities;; shall Mt. Diablo Unified School District issue $348,000,000 of bonds at legal interest rates, with independent citizen oversight, audits, and no money for administrator salaries?” The net proceeds of the Bonds will be deposited into the Building Fund established by

the County and expended on authorized projects. A portion of the proceeds of the Bonds will be applied to pay related costs of issuance. See “SOURCES AND USES OF FUNDS” and “APPLICATION OF PROCEEDS OF THE BONDS.”

SOURCES AND USES OF FUNDS

The estimated sources and uses of funds with respect to the Bonds are as follows:

Sources of Funds Principal Amount of Bonds Net Original Issue Premium

Total Sources Uses of Funds Deposit to Building Fund Debt Service Fund Costs of Issuance(1)

Total Uses

(1) All estimated costs of issuance including, but not limited to, Purchaser’s discount, printing costs, and fees of Bond Counsel, Disclosure Counsel, Financial Advisor, Paying Agent, and the rating agencies.

See also “APPLICATION OF PROCEEDS OF THE BONDS” herein.

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THE BONDS

Description of the Bonds The Bonds will be issued in book-entry form only, and will be initially issued and

registered in the name of Cede & Co. as nominee for The Depository Trust Company (“DTC”). Purchasers will not receive physical certificates representing their interest in the Bonds. See "Book-Entry Only System" below and “APPENDIX F – Book-Entry Only System.”

Interest on the Bonds accrues from the date of original delivery (the “Dated Date”) and

is payable semiannually on February 1 and August 1 of each year (each, an “Interest Payment Date”) commencing February 1, 2017. Each Bond will bear interest from the Interest Payment Date next preceding the date of registration and authentication thereof unless (i) it is registered and authenticated as of an Interest Payment Date, in which event it shall bear interest from such date, or (ii) it is registered and authenticated prior to an Interest Payment Date and after the close of business on the 15th day of the month preceding such Interest Payment Date (each, a “Record Date”), in which event it shall bear interest from such Interest Payment Date, or (iii) it is registered and authenticated prior to January 15, 2017, in which event it will bear interest from the date of original delivery;; provided, however, that if at the time of authentication of a Bond, interest is in default thereon, such Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.

Interest on the Bonds, including the final interest payment upon maturity, is payable by

check, draft or wire of the Paying Agent mailed on the Interest Payment Date by first-class mail to the Owner thereof at such Owner’s address as it appears on the bond register maintained by the Paying Agent at the close of business on the preceding Record Date, or at such other address as the Owner may have filed with the Paying Agent for that purpose, or upon written request filed with the Paying Agent as of the Record Date by an Owner of at least $1,000,000 in aggregate principal amount of Bonds, by wire transfer.

The Bonds will be issued in denominations of $5,000 principal amount or any integral

multiple thereof. The Bonds mature on August 1 in the years and amounts set forth on the inside cover page hereof. Paying Agent

U.S. Bank National Association, San Francisco, California, will act as the registrar, transfer agent, and paying agent for the Bonds (the “Paying Agent”). As long as DTC is the registered owner of the Bonds and DTC's book-entry method is used for the Bonds, the Paying Agent will send any notice of prepayment or other notices to owners only to DTC. Any failure of DTC to advise any DTC Participant, or of any DTC Participant to notify any Beneficial Owner, of any such notice and its content or effect will not affect the validity or sufficiency of the proceedings relating to the prepayment of the Bonds called for prepayment or of any other action premised on such notice.

The Paying Agent, the District and the County have no responsibility or liability for any

aspects of the records relating to or payments made on account of beneficial ownership, or for maintaining, supervising or reviewing any records relating to beneficial ownership of interests in the Bonds.

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Optional Redemption The Bonds maturing on or before August 1, 2026, are not subject to redemption prior to

their respective stated maturities. The Bonds maturing on or after August 1, 2027, are subject to redemption prior to maturity, at the option of the District, in whole or in part among maturities on such basis as shall be designated by the District and by lot within a maturity, from any available source of funds, on August 1, 2026, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest thereon to the date fixed for redemption, without premium.

Mandatory Sinking Fund Redemption*

The Bonds maturing on August 1, 20__ (the “Term Bonds”), are subject to mandatory

sinking fund redemption in part by lot, on August 1 of each year in accordance with the schedules set forth below. The Term Bonds so called for mandatory sinking fund redemption shall be redeemed at the principal amount of such Bonds to be redeemed, plus accrued but unpaid interest, without premium.

$_________ Term Bonds Maturing August 1, 20__

Redemption Year Principal Amount (August 1) to be Redeemed If some but not all of the Term Bonds have been redeemed pursuant to the optional

redemption provisions described above, the aggregate principal amount of Term Bonds to be redeemed pursuant to mandatory sinking fund redemption shall be reduced on a pro rata basis in integral multiples of $5,000, or on such other basis as designated pursuant to written notice filed by the District with the Paying Agent.

Selection of Bonds for Redemption

Whenever provision is made for the redemption of Bonds and less than all Outstanding

Bonds are to be redeemed, the Paying Agent, upon written instruction from the District received at least 30 days prior to the specified redemption date (unless a shorter notice is consented to by the Paying Agent), shall select Bonds for redemption by lot within a maturity. Redemption by lot shall be in such a manner as the Paying Agent may determine;; provided, however, that the portion of any Bond to be redeemed in part will be in the principal amount of $5,000 or any integral multiple thereof.

*Designation of term bonds subject to mandatory sinking fund redemption is at bidder’s option

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Notice of Redemption The Paying Agent is required to give notice of the redemption of the Bonds, at the

expense of the District, at least 30 days but not more than 60 days prior to the date fixed for redemption, to the respective owners of any Bonds designated for redemption, at their addresses appearing on the Registration Books maintained by the Paying Agent. Notice of any redemption of Bonds shall specify: (a) the Bonds or designated portions thereof (in the case of redemption of the Bonds in part but not in whole) which are to be redeemed, (b) the date of redemption, (c) the place or places where the redemption will be made, including the name and address of the Paying Agent, (d) the redemption price, (e) the CUSIP numbers (if any) assigned to the Bonds to be redeemed, (f) the Bond numbers of the Bonds to be redeemed in whole or in part and, in the case of any Bond to be redeemed in part only, the principal amount of such Bond to be redeemed, and (g) the original issue date, interest rate and stated maturity date of each Bond to be redeemed in whole or in part. Such notice shall further state that on the specified date there shall become due and payable upon each Bond or portion thereof being redeemed the redemption price thereof, and that from and after such date, interest with respect thereto shall cease to accrete in value.

Neither failure to receive or failure to send any notice of redemption nor any defect in

any such redemption notice so given shall affect the sufficiency of the proceedings for the redemption of the affected Bonds.

Partial Redemption of Bonds

Upon the surrender of any Bond redeemed in part only, the Paying Agent shall execute

and deliver to the Owner thereof a new Bond or Bonds of like tenor and maturity and of authorized denominations equal in transfer amounts to the unredeemed portion of the Bond surrendered. Such partial redemption shall be valid upon payment of the amount required to be paid to such Owner, and the County and the District shall be released and discharged thereupon from all liability to the extent of such payment.

Right to Rescind Notice of Redemption

The District has the right to rescind any notice of the optional redemption of Bonds by

written notice to the Paying Agent on or prior to the date fixed for redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption. The District and the Paying Agent have no liability to the Bond owners or any other party related to or arising from such rescission of redemption. The Paying Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under the Bond Resolution.

Registration, Transfer and Exchange of Bonds

If the book entry system is discontinued, the District shall cause the Paying Agent to

maintain and keep at its principal corporate trust office all books and records necessary for the registration, exchange and transfer of the Bonds.

If the book entry system is discontinued, the person in whose name a Bond is registered

on the Bond Register shall be regarded as the absolute owner of that Bond. Payment of the principal of and interest on any Bond shall be made only to or upon the order of that person;;

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neither the District, the County nor the Paying Agent shall be affected by any notice to the contrary, but the registration may be changed as provided in the Bond Resolution.

Bonds may be exchanged for Bonds of like tenor, maturity and principal amount upon

presentation and surrender at the principal corporate trust office of the Paying Agent in San Francisco, California. Any Bond may, in accordance with its terms, but only if (i) the District determines to no longer maintain the book entry only status of the Bonds, (ii) DTC determines to discontinue providing such services and no successor securities depository is named or (iii) DTC requests the District to deliver Bond certificates to particular DTC Participants, be transferred, upon the books required to be kept pursuant to the provisions of the Bond Resolution, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the office of the Paying Agent, accompanied by delivery of a written instrument of transfer in a form approved by the Paying Agent, duly executed.

No exchanges of Bonds shall be required to be made (a) fifteen days prior to an Interest

Payment Date or the date established by the Paying Agent for selection of Bonds for redemption or (b) with respect to a Bond after such Bond has been selected for redemption.

Defeasance

The Bonds may be paid by the District, in whole or in part, in any one or more of the

following ways: (a) by paying or causing to be paid the principal or redemption price of and

interest on such Bonds, as and when the same become due and payable;; (b) by irrevocably depositing, in trust, at or before maturity, money or

securities in the necessary amount (as provided in the Bond Resolution) to pay or redeem such Bonds;; or

(c) by delivering such Bonds to the Paying Agent for cancellation by it. Whenever in a Bond Resolution it is provided or permitted that there be deposited with

or held in trust by the Paying Agent money or securities in the necessary amount to pay or redeem any Bonds, the money or securities so to be deposited or held may be held by the Paying Agent or by any other fiduciary. Such money or securities may include money or securities held by the Paying Agent in the funds and accounts established under such Bond Resolution and will be:

(i) lawful money of the United States of America in an amount equal to the

Principal Amount of such Bonds and all unpaid interest thereon to maturity, except that, in the case of Bonds which are to be redeemed prior to maturity and in respect of which notice of such redemption is given as provided in such Bond Resolution or provision satisfactory to the Paying Agent is made for the giving of such notice, the amount to be deposited or held will be the Principal Amount or redemption price of such Bonds and all unpaid interest thereon to the redemption date;; or

(ii) Federal Securities (not callable by the issuer thereof prior to maturity) the

principal of and interest on which when due, in the opinion of a certified public

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accountant delivered to the District, will provide money sufficient to pay the principal or redemption price of and all unpaid interest to maturity, or to the redemption date, as the case may be, on the Bonds to be paid or redeemed, as such principal or redemption price and interest become due, provided that, in the case of Bonds which are to be redeemed prior to the maturity thereof, notice of such redemption is given as provided in such Bond Resolution or provision satisfactory to the Paying Agent is made for the giving of such notice.

Upon the deposit, in trust, at or before maturity, of money or securities in the necessary

amount (as described above) to pay or redeem any outstanding Bond (whether upon or prior to its maturity or the redemption date of such Bond), then all liability of the County and the District in respect of such Bond will cease and be completely discharged, except only that thereafter the owner thereof will be entitled only to payment of the principal of and interest on such Bond by the District, and the District will remain liable for such payment, but only out of such money or securities deposited with the Paying Agent for such payment.

As used herein, the term “Federal Securities” means United States Treasury notes,

bonds, bills or certificates of indebtedness, or any other obligations the timely payment of which is directly or indirectly guaranteed by the full faith and credit of the United States of America. Book-Entry-Only System

The Bonds will be issued in fully registered form only and, when initially issued, will be

registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository for the Bonds. Purchasers of the Bonds will not receive physical certificates representing their beneficial ownership interests in the Bonds purchased. Payments of principal and interest on the Bonds will be paid by the Trustee to DTC, which is obligated in turn to remit such principal and interest to its DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “APPENDIX F – Book-Entry Only System” herein.

APPLICATION OF PROCEEDS OF THE BONDS Building Fund

Pursuant to the Bond Resolution, the net proceeds from the sale of the Bonds will be

paid and credited to funds established by the Contra Costa County Auditor-Controller (the “County Auditor”) and designated as the “Mt. Diablo Unified School District, 2010 Election, Series G Building Fund,” (the “Building Fund”). Amounts credited to the Building Fund will be expended by the District for the purpose of financing any of the projects for which the Bond proceeds are authorized to be expended under the 2010 Election, including all incidental expenses and related costs of issuance. All interest and other gain arising from the investment of proceeds of the Bonds will be retained in the Building Fund and used for the purposes thereof. All moneys held in the Building Fund will be invested in accordance with the investment policies of the County, as such policies exist at the time of investment. Pursuant to the Bond Resolution and applicable provisions of the Education Code, a portion of the proceeds of the Bonds may be deposited with a fiscal agent for the purpose of paying costs of issuance. See also “APPENDIX G - CONTRA COSTA COUNTY INVESTMENT POLICY AND INVESTMENT REPORT” herein.

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Debt Service Fund Pursuant to the Bond Resolution, premium, if any, received by the County from the sale

of the Bonds will be deposited and kept separate and apart in the fund established by the County Auditor and designated as the “Mt. Diablo Unified School District 2010 Election, Series G General Obligation Bonds Debt Service Fund” (the “Debt Service Fund”), which is pledged for the payment of the principal of and interest on the Bonds when and as the same become due. All taxes levied by the County for the payment of the principal of and interest and premium (if any) on the Bonds will be deposited in the Debt Service Fund by the County promptly upon apportionment of said levy.

Any moneys remaining in the Debt Service Fund after the Bonds and the interest

thereon have been paid, shall be transferred to any other interest and sinking fund or account for general obligation bond indebtedness of the District, including refunding bonds, and in the event there is no such debt outstanding, shall be transferred to the District’s general fund upon the order of the County Auditor, as provided in Section 15234 of the Education Code.

Investment of Proceeds of Bonds

All amounts deposited into the Debt Service Fund, as well as proceeds of taxes held

therein for payment of the Bonds, shall be invested at the sole discretion of the County Treasurer pursuant to law and the investment policy of the County. All amounts deposited in the Building Fund of the District shall be invested at the sole discretion of the County Treasurer, unless otherwise directed in writing by the District, pursuant to law and the investment policy of the County. In addition, at the written direction of the District, all or any portion of the Building Fund of the District may be invested in the Local Agency Investment Fund in the treasury of the State of California. All interest or gain derived from the investment of amounts in any of the funds or accounts established under the Bond Resolution will be deposited in the fund or account from which such investment was made, and will be expended for the purposes thereof. See APPENDIX G: “CONTRA COSTA COUNTY INVESTMENT POLICY AND INVESTMENT REPORT.” The County Treasurer neither monitors investments for arbitrage compliance, nor does it perform arbitrage calculations. The District shall maintain or cause to be maintained detailed records with respect to the applicable proceeds.

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SECURITY FOR THE BONDS

Ad Valorem Taxes

Bonds Payable from Ad Valorem Property Taxes. The Bonds are general obligations of the District, payable solely from ad valorem property taxes levied and collected by the County. The County is empowered and is obligated to annually levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the District subject to taxation by the District, without limitation of rate or amount (except certain personal property which is taxable at limited rates). In no event is the District obligated to pay principal of and interest and redemption premium, if any, on the Bonds out of any funds or properties of the District other than ad valorem taxes levied upon all taxable property in the District;; provided, however, nothing in the Bond Resolution prevents the District from making advances of its own moneys howsoever derived to any of the uses or purposes permitted by law.

Other Bonds Payable from Ad Valorem Property Taxes. The District has previously

issued other general obligation bonds, which are payable from ad valorem taxes on a parity basis. See “DEBT SERVICE SCHEDULES - Combined General Obligation Bond Debt Service Schedule.” In addition to the general obligation bonds issued by the District, there is other debt issued by entities with jurisdiction in the District, which is also payable from ad valorem taxes levied on property in the District. See “PROPERTY TAXATION – Direct and Overlapping Debt” below.

Levy and Collection. The County will levy and collect such ad valorem taxes in such

amounts and at such times as is necessary to ensure the timely payment of debt service. Such taxes, when collected, will be deposited into a debt service fund for the Bonds, which is maintained by the County and which is irrevocably pledged for the payment of principal of and interest on the Bonds when due.

District property taxes are assessed and collected by the County in the same manner

and at the same time, and in the same installments as other ad valorem taxes on real property, and will have the same priority, become delinquent at the same times and in the same proportionate amounts, and bear the same proportionate penalties and interest after delinquency, as do the other ad valorem taxes on real property. See “PROPERTY TAXATION -Teeter Plan” below.

Statutory Lien on Ad Valorem Tax Revenues. Pursuant to Senate Bill 222 effective

January 1, 2016, voter approved general obligation bonds which are secured by ad valorem tax collections, including the Bonds, are secured by a statutory lien on all revenues received pursuant to the levy and collection of the property tax imposed to service those bonds. Said lien attaches automatically and is valid and binding from the time the bonds are executed and delivered. The lien is enforceable against the school district or community college district, its successors, transferees, and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any further act.

Annual Tax Rates. The amount of the annual ad valorem tax levied by the County to

repay the Bonds will be determined by the relationship between the assessed valuation of taxable property in the District and the amount of debt service due on the Bonds. Fluctuations in the annual debt service on the Bonds and the assessed value of taxable property in the District may cause the annual tax rate to fluctuate.

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Economic and other factors beyond the District’s control, such as economic recession, deflation of land values, a relocation out of the District or financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property caused by, among other eventualities, earthquake, flood, fire, drought or other natural disaster, could cause a reduction in the assessed value within the District and necessitate a corresponding increase in the annual tax rate.

Debt Service Fund

As described herein, the County will establish a Debt Service Fund for the Bonds. The

Debt Service Fund has been pledged for the payment of the principal of and interest and premium (if any) on the Bonds when and as the same become due. The collections deposited in the Debt Service Fund are secured by a statutory lien on all revenues received pursuant to the levy and collection of the property tax imposed to service the Bonds.

Not a County Obligation

The Bonds are payable solely from the proceeds of an ad valorem tax levied and

collected by the County, for the payment of principal and interest on the Bonds. Although the County is obligated to collect the ad valorem tax for the payment of the Bonds, the Bonds are not a debt of the County.


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DEBT SERVICE SCHEDULE

Debt Service for the Bonds. The following table shows the debt service schedule with respect to the Bonds, assuming no optional redemptions.


Bonds Debt Service Schedule

Bond Year Ending August 1 Principal Interest

Total Debt Service

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total

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Combined General Obligation Bonds Debt Service. The District has issued general obligation bonds and refunding general obligation bonds pursuant to voter authorizations received in 2002, and pursuant to the 2010 Election. The following table shows combined annual debt service for outstanding general obligation bonds (and refunding general obligation bonds) issued pursuant to the District’s prior general obligation bonds authorizations, together with debt service on the Bonds (assuming no optional redemptions). See also Appendix B under the heading “ - Long-Term Debt.”


Annual Debt Service for Outstanding General Obligation Bonds

Period Ending (Aug. 1)

2002 GOB Authorization

2010 GOB Authorization

The Bonds

Total 2017 $14,687,050.00 $22,818,034.50 2018 14,673,600.00 22,155,578.20 2019 14,652,525.00 21,665,827.20 2020 14,617,387.50 22,095,716.80 2021 14,570,137.50 22,514,753.40 2022 14,502,862.50 22,989,984.80 2023 14,409,912.50 23,512,089.90 2024 14,413,712.50 24,006,085.70 2025 14,296,712.50 24,500,188.30 2026 14,155,712.50 25,746,428.50 2027 14,035,712.50 27,110,242.10 2028 13,833,962.50 28,893,162.50 2029 13,620,212.50 29,847,537.50 2030 13,257,400.00 30,206,537.50 2031 12,963,166.67 31,459,612.50 2032 -- 20,974,937.50 2033 -- 21,662,700.00 2034 -- 23,763,537.50 2035 -- 26,046,587.50 2036 -- 19,370,500.00 2037 -- 10,458,333.33 Total $212,690,066.67 $501,798,375.23

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PROPERTY TAXATION

Ad Valorem Property Taxation

Taxes are levied by the County for each fiscal year on taxable real and personal property which is situated in the District as of the preceding January 1. For assessment and collection purposes, property is classified either as “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed public utilities property and real property having a tax lien which is sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the “unsecured roll.”

Property taxes on the secured roll are due in two installments, on November 1 and

February 1 of each fiscal year. If unpaid, such taxes become delinquent on December 10 and April 10, respectively, and a 10 percent penalty attaches to any delinquent payment. Property on the secured roll with respect to which taxes are delinquent becomes tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of a penalty of 1.5 percent per month to the time of redemption, plus costs and a redemption fee. If taxes are unpaid for a period of five years or more, the property is subject to sale by the Treasurer.

Property taxes on the unsecured roll are due as of the January 1 lien date and become

delinquent, if unpaid, on August 31. A 10 percent penalty attaches to delinquent unsecured taxes. If unsecured taxes are unpaid at 5:00 p.m. on October 31, an additional penalty of 1.5 percent attaches to them on the first day of each month until paid. The taxing authority has four ways of collecting delinquent unsecured personal property taxes: (1) bringing a civil action against the taxpayer;; (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a lien on certain property of the taxpayer;; (3) filing a certificate of delinquency for record in the County Clerk and County Recorder's office in order to obtain a lien on certain property of the taxpayer;; and (4) seizing and selling personal property, improvements, or possessory interests belonging or assessed to the assessee.

Assessed Valuations

The assessed valuation of property in the District is established by the Contra Costa

County Assessor, except for public utility property which is assessed by the State Board of Equalization. Assessed valuations are reported at 100 percent of the “full value” of the property, as defined in Article XIIIA of the California Constitution. Prior to 1981-82, assessed valuations were reported at 25 percent of the full value of property. For a discussion of how properties currently are assessed, see “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS.”

Certain classes of property, such as churches, colleges, not-for-profit hospitals, and

charitable institutions, are exempt from property taxation and do not appear on the tax rolls. No reimbursement is made by the State for such exemptions.

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Historical Assessed Valuation. Shown in the following table are recent assessed valuations for the District.


Assessed Valuation Fiscal Years 2001-02 through 2016-17

Fiscal Year

Local Secured

Utility

Unsecured

Total

% Change 2001-02 $19,501,805,860 $15,111,986 $899,543,508 $20,416,461,174 -- 2002-03 20,950,443,237 14,591,990 942,041,048 21,892,484,285 7.23% 2003-04 22,705,133,044 6,252,431 920,522,887 23,631,908,362 7.95 2004-05 24,434,456,724 6,489,435 868,334,641 25,309,280,800 7.10 2005-06 26,500,394,364 7,186,091 942,384,927 27,449,965,382 8.46 2006-07 29,196,571,252 6,300,577 951,192,569 30,154,064,398 9.85 2007-08 31,650,036,905 4,180,952 964,357,554 32,618,575,411 8.17 2008-09 31,738,225,590 3,832,225 1,062,848,164 32,804,905,979 0.57 2009-10 29,639,009,735 3,832,225 1,051,293,746 30,694,135,706 -6.43 2010-11 28,924,776,672 7,279,811 974,038,398 29,906,094,881 -2.57 2011-12 28,609,334,442 6,768,296 934,855,683 29,550,958,421 -1.19 2012-13 27,968,639,633 6,768,296 912,822,483 28,888,230,412 -2.24 2013-14 29,445,989,430 5,332,256 885,862,726 30,337,184,412 5.03 2014-15 32,106,950,096 5,221,838 922,809,547 33,034,981,481 8.87 2015-16 34,400,962,547 5,221,838 969,180,826 35,375,365,211 7.08 2016-17 36,236,051,218 1,407,638 994,773,478 37,232,232,334 5.24

Source: California Municipal Statistics, Inc.

As indicated in the previous table, assessed valuations are subject to change in each

year. Increases or decreases in assessed valuation may result from a variety of factors including but not limited to general economic conditions, supply and demand for real property in the area, government regulations such as zoning, and natural disasters such as earthquakes, fires, floods and droughts. With respect to droughts specifically, the State of California is currently facing water shortfalls, and on January 17, 2014, the Governor declared a state of drought emergency, calling on Californians to conserve water. As part of his declaration, the Governor directed State officials to assist agricultural producers and communities that may be economically impacted by dry conditions. Thereafter, the California State Water Resources Control Board (the “Water Board”) issued a statewide notice of water shortages and potential future curtailment of water right diversions. On April 1, 2015, the Governor issued an executive order mandating certain conservation, which were implemented by an emergency regulation adopted by the Water Board on May 5, 2015. The temporary conservation measures have been extended and amended by subsequent executive orders of the Governor and related Water Board regulations, most recently with implementation of a “stress test” approach of water conservation, which requires local urban water agencies to ensure a three-year supply of water assuming three years of drought conditions. Those agencies with projected shortages are required to implement conservation measures through January 2017. The District cannot predict or make any representations regarding the effects that the current drought has had, or, if it should continue, may have on the value of taxable property within the District including the District, or to what extent the drought could cause disruptions to economic activity within the boundaries of the District including the District.

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Assessed Valuation By Jurisdiction. The following table sets forth assessed

valuation in the District by jurisdiction.

MT. DIABLO UNIFIED SCHOOL DISTRICT 2016-17 Assessed Valuation by Jurisdiction(1)

Assessed Valuation % of Assessed Valuation % of Jurisdiction Jurisdiction: in School District School District of Jurisdiction in School District City of Clayton $ 2,077,197,672 5.58% $2,077,197,672 100.00% City of Concord 14,813,960,870 39.79 $14,813,960,870 100.00% City of Martinez 1,976,468,937 5.31 $5,445,125,587 36.30% City of Pittsburg 1,377,958,753 3.70 $6,597,041,092 20.89% City of Pleasant Hill 5,581,884,642 14.99 $5,581,884,642 100.00% City of Walnut Creek 6,489,407,959 17.43 $16,470,297,114 39.40% Unincorporated Contra Costa County 4,915,353,501 13.20 $36,451,895,749 13.48% Total District $37,232,232,334 100.00% Contra Costa County $37,232,232,334 100.00% $182,660,316,369 20.38% (1) Before deduction of redevelopment incremental valuation. Source: California Municipal Statistics, Inc.

Assessed Valuation by Land Use. The following table shows the land use of parcels

in the District for fiscal year 2016-17. As shown, the majority of land in the District is used for residential purposes.


Assessed Valuation and Parcels by Land Use Fiscal Year 2016-17

2016-17 % of No. of % of No. of Taxable % Assessed Valuation (1) Total Parcels Total Parcels Total Non-Residential: Agricultural/Rural $ 163,470,415 0.45% 230 0.27% 221 0.26% Commercial/Office 4,174,134,275 11.52 1,529 1.78 1,509 1.78 Vacant Commercial 86,747,599 0.24 169 0.20 146 0.17 Industrial 2,858,036,019 7.89 560 0.65 555 0.66 Vacant Industrial 76,215,828 0.21 75 0.09 74 0.09 Recreational 62,526,841 0.17 82 0.10 82 0.10 Government/Social/Institutional 124,356,008 0.34 1,498 1.74 754 0.89 Miscellaneous 90,798,246 0.25 1,321 1.53 1,082 1.28 Subtotal Non-Residential $7,636,285,231 21.07% 5,464 6.35% 4,423 5.23% Residential: Single Family Residence $23,065,396,710 63.65% 60,441 70.21% 60,403 71.43% Condominium/Townhouse 3,314,491,228 9.15 16,125 18.73 16,113 19.06 Rural Residential 160,265,148 0.44 235 0.27 235 0.28 Mobile Home 17,269,397 0.05 760 0.88 760 0.90 2-4 Residential Units 298,476,855 0.82 720 0.84 720 0.85 5+ Residential Units/Apartments 1,616,437,785 4.46 570 0.66 555 0.66 Vacant Residential 127,428,864 0.35 1,769 2.05 1,349 1.60 Subtotal Residential $28,599,765,987 78.93% 80,620 93.65% 80,135 94.77% Total $36,236,051,218 100.00% 86,084 100.00% 84,558 100.00%

(1) Local Secured Assessed Valuation;; excluding tax-exempt property. Source: California Municipal Statistics, Inc.

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Assessed Valuation of Single Family Residential Parcels. The following table shows a breakdown of the assessed valuations of improved single-family residential parcels in the District, according to fiscal year 2016-17 assessed valuation.

MT. DIABLO UNIFIED SCHOOL DISTRICT Per Parcel 2016-17 Assessed Valuation

of Single Family Homes No. of 2016-17 Average Median Parcels Assessed Valuation Assessed Valuation Assessed Valuation Single Family Residential 60,403 $23,065,396,710 $381,858 $344,050 2016-17 No. of % of Cumulative Total % of Cumulative Assessed Valuation Parcels(1) Total % of Total Valuation Total % of Total

$0 - $49,999 368 0.609% 0.609% $ 13,762,920 0.060% 0.060% $50,000 - $99,999 5,752 9.523 10.132 440,367,911 1.909 1.969 $100,000 - $149,999 4,578 7.579 17.711 567,499,463 2.460 4.429 $150,000 - $199,999 4,558 7.546 25.257 799,903,537 3.468 7.897 $200,000 - $249,999 5,196 8.602 33.859 1,169,921,209 5.072 12.969 $250,000 - $299,999 5,248 8.688 42.548 1,439,994,936 6.243 19.213 $300,000 - $349,999 5,094 8.433 50.981 1,655,933,983 7.179 26.392 $350,000 - $399,999 5,010 8.294 59.275 1,876,616,138 8.136 34.528 $400,000 - $449,999 4,524 7.490 66.765 1,918,995,092 8.320 42.848 $450,000 - $499,999 3,937 6.518 73.283 1,866,488,517 8.092 50.940 $500,000 - $549,999 3,486 5.771 79.054 1,826,844,401 7.920 58.860 $550,000 - $599,999 2,688 4.450 83.504 1,541,866,307 6.685 65.545 $600,000 - $649,999 2,125 3.518 87.022 1,327,152,613 5.754 71.299 $650,000 - $699,999 1,706 2.824 89.847 1,148,793,455 4.981 76.279 $700,000 - $749,999 1,436 2.377 92.224 1,038,980,533 4.504 80.784 $750,000 - $799,999 1,126 1.864 94.088 871,714,186 3.779 84.563 $800,000 - $849,999 900 1.490 95.578 741,456,282 3.215 87.778 $850,000 - $899,999 748 1.238 96.816 653,792,300 2.835 90.612 $900,000 - $949,999 540 0.894 97.710 498,148,142 2.160 92.772 $950,000 - $999,999 356 0.589 98.300 346,340,102 1.502 94.274 $1,000,000 and greater 1,027 1.700 100.000 1,320,824,683 5.726 100.000 Total 60,403 100.000% $23,065,396,710 100.000%

(1) Improved single family residential parcels. Excludes condominiums and parcels with multiple family units. Source: California Municipal Statistics, Inc.

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Typical Tax Rates. The following table sets forth typical tax rates levied in Tax Rate Area (2-002) for fiscal years 2011-12 through 2016-17:

MT. DIABLO UNIFIED SCHOOL DISTRICT Typical Tax Rate per $100 Assessed Valuation (TRA 2-002)(1)

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 General $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 Bay Area Rapid Transit District .0041 .0043 .0075 .0045 .0026 .0080 East Bay Regional Park District .0071 .0051 .0078 .0085 .0067 .0032 Mount Diablo Unified School District .0612 .0871 .0740 .0853 .0812 .0764 Contra Costa Community College District .0144 .0087 .0252 .0252 .0220 .0120 Total All Property Tax Rate $1.0868 $1.1052 $1.1026 $1.1235 1.1125 $1.0996 Contra Costa Water District (Land Only) .0051 .0045 .0042 .0037 .0035 .0032 ____________________ (1) 2016-17 assessed valuation of TRA 2-002 is $9,321,902,410. Source: California Municipal Statistics, Inc.

Appeals of Assessed Value

General. There are two types of appeals of assessed values that could adversely impact

property tax revenues within the District.

Appeals may be based on Proposition 8 of November 1978, which requires that for each January 1 lien date, the taxable value of real property must be the lesser of its base year value, annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution, or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value.

Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in form prescribed by the State Board of Equalization, with the County board of equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. Proposition 8 reductions may also be unilaterally applied by the County Assessor.

Any reduction in the assessment ultimately granted as a result of such appeal applies to the year for which application is made and during which the written application was filed. These reductions are subject to yearly reappraisals and are adjusted back to their original values when market conditions improve. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.

A second type of assessment appeal involves a challenge to the base year value of an assessed property. Appeals for reduction in the base year value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.

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The District cannot predict the changes in assessed values that might result from pending or future appeals by taxpayers. Any reduction in aggregate District assessed valuation due to appeals, as with any reduction in assessed valuation due to other causes, will cause the tax rate levied to repay the Bonds to increase accordingly, so that the fixed debt service on the Bonds (and other outstanding general obligation bonds, if any) may be paid.

Property Tax Collections

The Board of Supervisors of the County has adopted the Alternative Method of

Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”), as provided for in Section 4701 et seq. of the California Revenue and Taxation Code. Under the Teeter Plan, each entity levying property taxes in the County may draw on the amount of uncollected secured taxes credited to its fund, in the same manner as if the amount credited had been collected. The District participates in the Teeter Plan, and thus receives 100% of secured property taxes levied in exchange for foregoing any interest and penalties collected on delinquent taxes. Currently, the County includes general obligation bond levies in its Teeter Plan.

So long as the Teeter Plan remains in effect and the County continues to include the

District in the Teeter Plan, the District’s receipt of revenues with respect to the levy of ad valorem property taxes will not be dependent upon actual collections of the ad valorem property taxes by the County. However, under the statute creating the Teeter Plan, the Board of Supervisors could under certain circumstances terminate the Teeter Plan in its entirety and, in addition, the Board of Supervisors could terminate the Teeter Plan with respect to the District if the delinquency rate for all ad valorem property taxes levied within the District in any year exceeds 3%. In the event that the Teeter Plan were terminated with regard to the secured tax roll, the amount of the levy of ad valorem property taxes in the District would depend upon the collections of the ad valorem property taxes and delinquency rates experienced with respect to the parcels within the District.

Notwithstanding that the County is on the Teeter Plan, below is information regarding

historical secured tax charges and delinquencies with respect to the levy for debt service on its bonds.

MT. DIABLO UNIFIED SCHOOL DISTRICT Secured Tax Charges and Delinquencies

2007-08 through 2015-16

Fiscal Year Secured Tax Charge(1)

Amount Delinquent June 30

% Delinquent June 30

2007-08 $13,151,902.12 $526,267.47 4.00% 2008-09 14,200,845.88 460,317.48 3.24 2009-10 14,382,466.91 310,553.48 2.16 2010-11 17,101,571.50 257,674.68 1.51 2011-12 17,170,450.13 214,096.51 1.25 2012-13 24,023,237.86 208,804.54 0.87 2013-14 21,540,513.25 171,822.10 0.80 2014-15 27,156,125.89 180,910.49 0.67 2015-16 27,687,193.68 176,493.21 0.64

(1) Debt Service Levy only. Source: California Municipal Statistics, Inc.

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Largest Property Owners

The following table shows the 20 largest owners of taxable property in the District as determined by secured assessed valuation in fiscal year 2016-17.

The more property (by assessed value) which is owned by a single taxpayer in the

District, the greater the amount of tax collections that are exposed to weaknesses in the taxpayer’s financial situation and ability or willingness to pay property taxes. Each taxpayer listed below is a unique name listed on the tax rolls. The District cannot determine from County assessment records whether individual persons, corporations or other organizations are liable for tax payments with respect to multiple properties held in various names that in aggregate may be larger than is suggested by the table below.


Largest Local Secured Taxpayers Fiscal Year 2016-17

2016-17 % of Property Owner Primary Land Use Assessed Valuation Total (1) 1. Tesoro Refining & Marketing Co. Heavy Industrial $1,223,567,774 3.38% 2. Taubman Land Associates LLC Regional Mall 178,752,381 0.49 3. Sierra Pacific Properties Inc. Office Building 136,663,064 0.38 4. CSAA Inter-Insurance Bureau Office Building 127,706,861 0.35 5. PH Crescent Drive Investors Shopping Center 103,017,706 0.28 6. DWF III Concord Tech LLC Office Building 98,191,962 0.27 7. Park Regency Partners Apartments 94,958,309 0.26 8. GSG Residential Park Central Apartments 79,564,432 0.22 9. Clayton Valley Shopping Center Shopping Center 71,324,086 0.20 10. Seecon Financial & Construction Co. Office Building 70,904,334 0.20 11. San Marco Properties LLC Apartments 67,992,268 0.19 12. PMI Plaza LLC Office Building 66,164,355 0.18 13. FW CA PH Shopping Center LLC Shopping Center 64,591,828 0.18 14. Willows Center Concord Shopping Center 64,350,192 0.18 15. Tilden-Stoneridge LLC Condominiums 63,324,921 0.17 16. MLM Treat Towers Property LLC Office Building 62,851,057 0.17 17. GSG Resident Iron Horse Park Apartments 62,260,241 0.17 18. MLVI Park Lake Apartments LLC Apartments 62,033,808 0.17 19. Concord Airport Plaza Associates Office Building 58,338,863 0.16 20. SFG Owner A&C LLC Office Building 51,882,046 0.14 $2,808,440,488 7.75%

_______________________________ (1) 2016-17 Total Secured Assessed Valuation: $36,236,051,218. Source: California Municipal Statistics, Inc.

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Overlapping Debt Obligations Set forth on the following page is a direct and overlapping debt report (the “Debt

Report”) prepared by California Municipal Statistics, Inc. with respect to debt issued and reported as of October 1, 2016. The Debt Report is included for general information purposes only. The District has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith.

The Debt Report generally includes long-term obligations sold in the public credit

markets by public agencies whose boundaries overlap the boundaries of the District in whole or in part. Such long-term obligations generally are not payable from revenues of the District (except as indicated) nor are they necessarily obligations secured by land within the District. In many cases, long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency.

[Remainder of page intentionally left blank]

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MT. DIABLO UNIFIED SCHOOL DISTRICT Statement of Direct and Overlapping Bonded Debt

Dated as of October 1, 2016

2016-17 Assessed Valuation: $37,232,232,334 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 10/1/16 Bay Area Rapid Transit District 5.763% $ 30,183,713 Contra Costa Community College District 20.459 83,795,972 Mount Diablo Unified School District 100.000 432,290,434 (1) Mount Diablo Unified School District Community Facilities District No. 1 100.000 13,790,000 East Bay Regional Park District 8.889 11,058,360 Pleasant Hill Recreation and Park District 88.859 22,743,461 City of Martinez 36.298 8,283,204 City of Pittsburg Community Facilities District No. 2005-2 100.000 9,360,000 City of Clayton Community Facilities District Nos. 1990-1 and 1990-2 100.000 2,520,000 1915 Act Bonds (Estimated) Various 9,838,697 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $623,863,841 OVERLAPPING GENERAL FUND DEBT: Contra Costa County General Fund Obligations 20.383% $ 51,714,845 Contra Costa County Pension Obligation Bonds 20.383 43,367,890 Contra Costa Community College District Certificates of Participation 20.459 107,410 City of Concord General Fund Obligations 100.000 1,650,000 City of Pittsburg Pension Obligation Bonds 20.888 7,272,864 City of Pleasant Hill General Fund Obligations 100.000 825,000 City of Walnut Creek General Fund Obligations 39.401 1,240,405 Pleasant Hill Recreation and Park District Certificates of Participation 88.859 1,781,623 Contra Costa Fire Protection District Pension Obligations 42.865 32,380,221 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $140,340,258 Less: Contra Costa County Obligations supported by revenue funds 13,991,102 City of Concord supported obligations 430,000 TOTAL NET OVERLAPPING GENERAL FUND DEBT $125,919,156 OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $153,010,547 GROSS COMBINED TOTAL DEBT $917,214,646 (2) NET COMBINED TOTAL DEBT $902,793,544 Ratios to 2016-17 Assessed Valuation: Direct Debt ($446,080,434) (3) ..................................... 1.20% Total Direct and Overlapping Tax and Assessment Debt 1.68% Gross Combined Total Debt ............................................ 2.46% Net Combined Total Debt ................................................ 2.42% Ratios to Redevelopment Incremental Valuation ($4,591,832,442): Total Overlapping Tax Increment Debt ........................... 3.33% (1) Excludes issue to be sold. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. (3) Includes Community Facilities District No. 1. _______________________________ Source: California Municipal Statistics, Inc.

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CONTRA COSTA COUNTY INVESTMENT POOL Under the California Education Code, the District is required to pay all monies received

from any source into the Contra Costa County Treasury to be held on behalf of the District. Therefore, the District’s funds, including monies on deposit in the District’s building funds and debt service funds, are held by the County Treasurer. The County’s investment policy and most recent investment report can be accessed through the internet at the County Treasury Division – Finance Agency – Controller-Treasurer Department, www.sccgov.org. The information accessible through the County’s web page is not incorporated in this Official Statement by reference and the reference herein is not a hyperlink to such web page. The County’s current investment policy and most recently available investment report are shown in Appendix G.

CONTINUING DISCLOSURE The District has covenanted for the benefit of holders and beneficial owners of the

Bonds to provide certain financial information and operating data relating to the District by not later than nine months following the end of the District’s fiscal year (which currently would be by March 31 each year based upon the June 30 end of the District’s fiscal year), commencing March 31, 2017, with the report for the 2015-16 Fiscal Year (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The Annual Report and any event notices will be filed by the District with the Municipal Securities Rulemaking Board (the “MSRB”). The specific nature of the information to be contained in an Annual Report or the notices of material events is set forth below under the caption “APPENDIX E - Form of Continuing Disclosure Certificate.” These covenants have been made in order to assist the Underwriter in complying with S.E.C. Rule 15c2-12(b)(5) (the “Rule”).

The District has existing disclosure undertakings that have been made pursuant to the

Rule in connection with the issuance of the District’s outstanding general obligation bonds and refunding general obligation bonds (see information in Appendix B under the heading “DISTRICT FINANCIAL INFORMATION – Long-Term Debt”). Instances of non-compliance in the previous five years are the annual report for fiscal year 2014-15 was filed twenty days late for the District’s 2010 Election, Series A and Series B Bonds. Identification of these instances of non-compliance does not constitute a representation that such instances have been determined to be material pursuant to the Rule.

In order to assist it in complying with its disclosure undertakings for its outstanding

bonds and the Bonds, the District has engaged Dale Scott & Co., Inc., to serve as its dissemination agent with respect to each of its disclosure undertakings, including the Continuing Disclosure Certificate to be executed in connection with the Bonds.

Neither the County nor any other entity other than the District shall have any obligation

or incur any liability whatsoever with respect to the performance of the District’s duties regarding continuing disclosure.

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CERTAIN LEGAL MATTERS

Absence of Material Litigation

No litigation is pending or threatened concerning the validity of the Bonds, and a certificate to that effect, executed by an authorized officer of the District, will be furnished to purchasers at the time of the original delivery of the Bonds. The District is not aware of any litigation pending or threatened that (i) questions the political existence of the District, (ii) contests the District's ability to receive ad valorem taxes or to collect other revenues or (iii) contests the District's ability to issue and retire the Bonds.

The District is routinely subject to lawsuits and claims. In the opinion of the District, the

aggregate amount of the uninsured liabilities of the District under these lawsuits and claims will not materially affect the financial position or operations of the District.

Legal Opinions

The proceedings in connection with the issuance of the Bonds are subject to the approval as to their legality by Bond Counsel. The opinions of Bond Counsel with respect to the Bonds will be delivered in substantially the respective forms attached hereto as Appendix D. Certain legal matters will also be passed upon for the District by Disclosure Counsel. The fees of Bond Counsel and Disclosure Counsel are contingent upon the issuance and delivery of the Bonds.

TAX MATTERS

Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes, and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income and earnings.

The opinions set forth in the preceding paragraph are subject to the condition that the

District comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”) that must be satisfied subsequent to the issuance of the Bonds in order that such interest be, or continue to be, excluded from gross income for federal income tax purposes. The District has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds.

Tax Treatment of Original Issue Discount and Premium. If the initial offering price to

the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes "original issue discount" for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes "original issue premium" for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded.

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Under the Tax Code, original issue discount is treated as interest excluded from federal

gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual and corporate alternative minimum taxes.

Under the Tax Code, original issue premium is amortized on an annual basis over the

term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds.

California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is

exempt from California personal income taxes. Other Tax Considerations. Owners of the Bonds should also be aware that the

ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Bonds other than as expressly described above, including any opinion regarding federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

Form of Opinion. The proposed form of opinion of Bond Counsel relating to the Bonds

is attached hereto as APPENDIX D.

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RATINGS

Fitch Ratings Group (“Fitch”) and Moody’s Investors Services (“Moody’s”) have assigned ratings of “AAA” and “Aa2,” respectively, to the Bonds. The District has provided certain additional information and materials to such rating agencies (some of which does not appear in this Official Statement). Such ratings reflect only the views of Fitch and Moody’s and an explanation of the significance of such ratings and outlooks may be obtained only from Fitch and Moody’s, respectively. There is no assurance that any credit ratings given to the Bonds will be maintained for any period of time or that the rating may not be lowered or withdrawn entirely by the rating agencies if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of a rating may have an adverse effect on the market price of the Bonds.

COMPETITIVE SALE OF BONDS

The Bonds were sold following a competitive bidding processes, and were awarded to the Bond Purchaser identified in the following paragraph, whose proposal represented the lowest true interest cost for the Bonds as determined in accordance with the Official Notice of Sale.

____________, the successful purchaser (the “Bond Purchaser”), has agreed to

purchase the Bonds at a price of $____________, which is equal to the initial principal amount of the Bonds of $____________ plus a net original issue premium of $_______________, less a Purchaser’s discount of $____________.

The Bond Purchaser intends to offer the Bonds to the public at the respective offering

prices set forth on the inside cover page of this Official Statement. The Bond Purchaser may offer and sell to certain dealers and others at a price lower than the offering prices stated on the inside cover page hereof. The offering price may be changed from time to time by the Bond Purchaser.

COMPENSATION OF PROFESSIONALS Payment of the fees and expenses of Bond Counsel, Disclosure Counsel and Dale Scott

& Co., Inc., as financial advisor to the District, is contingent upon issuance of the Bonds.

ADDITIONAL INFORMATION

The discussions herein about the Bond Resolution and the Continuing Disclosure

Certificate are brief outlines of certain provisions thereof. Such outlines do not purport to be complete and for full and complete statements of such provisions reference is made to such documents. Copies of these documents mentioned are available from the District and following delivery of the Bonds will be on file at the offices of the Paying Agent in San Francisco, California.

References are also made herein to certain documents and reports relating to the

District;; such references are brief summaries and do not purport to be complete or definitive. Copies of such documents are available upon written request to the District.

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Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the District and the Bond Purchaser or Owners of any of the Bonds.

EXECUTION The execution and delivery of this Official Statement have been duly authorized by the

District.

MT. DIABLO UNIFIED SCHOOL DISTRICT By:

Superintendent

A-1

APPENDIX A

AUDITED FINANCIAL STATEMENTS OF THE DISTRICT FOR FISCAL YEAR ENDING JUNE 30, 2015

MOUNTDIABLOUNIFIEDSCHOOLDISTRICT

AUDITREPORT

FortheFiscalYearEndedJune30,2015

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTFortheFiscalYearEndedJune30,2015TableofContents

FINANCIALSECTION Page

IndependentAuditors’Report..................................................................................................................................................................1Management’sDiscussionandAnalysis...............................................................................................................................................3BasicFinancialStatements:Government‐wideFinancialStatements:

StatementofNetPosition...........................................................................................................................................................11StatementofActivities.................................................................................................................................................................12

GovernmentalFundsFinancialStatements:BalanceSheet...................................................................................................................................................................................13ReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPosition.......................14StatementofRevenues,Expenditures,andChangesinFundBalances.................................................................15ReconciliationoftheGovernmentalFundsStatementofRevenues,Expenditures,

andChangesinFundBalancestotheStatementofActivities...........................................................................16FiduciaryFundsFinancialStatements:

StatementofFiduciaryNetPosition......................................................................................................................................17StatementofChangesinFiduciaryNetPosition..............................................................................................................18

NotestoFinancialStatements...............................................................................................................................................................19

REQUIREDSUPPLEMENTARYINFORMATIONBudgetaryComparisonSchedule–GeneralFund.........................................................................................................................46ScheduleofFundingProgress...............................................................................................................................................................47ScheduleofProportionateShareoftheNetPensionLiability................................................................................................48ScheduleofContributions.......................................................................................................................................................................49NotestotheRequiredSupplementaryInformation....................................................................................................................50

SUPPLEMENTARYINFORMATION

LocalEducationalAgencyOrganizationStructure.......................................................................................................................51ScheduleofAverageDailyAttendance..............................................................................................................................................52ScheduleofInstructionalTime.............................................................................................................................................................53ScheduleofFinancialTrendsandAnalysis......................................................................................................................................54ScheduleofCharterSchools...................................................................................................................................................................55ReconciliationofAnnualFinancialandBudgetReportwithAuditedFinancialStatements.....................................56ScheduleofExpendituresofFederalAwards.................................................................................................................................57CombiningStatements–Non‐MajorGovernmentalFunds:

CombiningBalanceSheet..........................................................................................................................................................58 CombiningStatementofRevenues,Expenditures,andChangesinFundBalances.........................................59

NotetotheSupplementaryInformation...........................................................................................................................................60

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTFortheFiscalYearEndedJune30,2015TableofContents

OTHERINDEPENDENTAUDITORS’REPORTS Page

IndependentAuditors'ReportonInternalControloverFinancialReportingandonCompliance andOtherMattersBasedonanAuditofFinancialStatementsPerformedinAccordancewith GovernmentAuditingStandards.....................................................................................................................................................61IndependentAuditors'ReportonStateCompliance...................................................................................................................63IndependentAuditors'ReportonComplianceForEachMajorFederalProgramandon InternalControlOverComplianceRequiredbyOMBCircularA‐133...........................................................................65

FINDINGSANDQUESTIONEDCOSTS

ScheduleofAuditFindingsandQuestionedCosts: SummaryofAuditors’Results......................................................................................................................................................67 CurrentYearAuditFindingsandQuestionedCosts...........................................................................................................68 SummaryScheduleofPriorAuditFindings...........................................................................................................................74ManagementLetter....................................................................................................................................................................................79

FinancialSection

1

INDEPENDENTAUDITORS’REPORTBoardofEducationMountDiabloUnifiedSchoolDistrictConcord,CaliforniaReportontheFinancialStatementsWehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,eachmajorfund,andtheaggregateremainingfundinformationofMountDiabloUnifiedSchoolDistrict,asofandforthefiscalyearended June 30, 2015, and the related notes to the financial statements, which collectively comprise theDistrict'sbasicfinancialstatementsaslistedinthetableofcontents.Management’sResponsibilityfortheFinancialStatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordancewithaccountingprinciplesgenerallyaccepted in theUnitedStatesofAmerica; this includes thedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Auditors'ResponsibilityOurresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,thestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards,issuedbytheComptrollerGeneralof the United States, and the 2014‐15 Guide for Annual Audits ofK‐12 Local Education Agencies and StateComplianceReporting. Those standards require that we plan and perform the audit to obtain reasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoserisk assessments, the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances,butnot for thepurposeofexpressinganopinionontheeffectivenessoftheentity’s internalcontrol. Accordingly,we express no suchopinion.An audit also includes evaluating the appropriatenessofaccountingpoliciesusedandthereasonablenessofsignificantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinions.OpinionsInouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,therespectivefinancial position of the governmental activities, each major fund, and the aggregate remaining fundinformation of Mount Diablo Unified School District, as of June 30, 2015, and the respective changes infinancialpositionforthefiscalyearthenendedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

2

EmphasisofMatterAsdiscussedinNote1.I.tothebasicfinancialstatements,theDistricthaschangeditsmethodforaccountingand reporting for pensions during fiscal year 2014‐15 due to the adoption of Governmental AccountingStandardsBoardStatementNo.68,"AccountingandFinancialReportingforPensions‐AnAmendmentofGASBStatementNo.27"andNo.71,"PensionTransitionforContributionsMadeSubsequenttotheMeasurementDate‐AnAmendmentofGASBStatementNo.68".Theadoptionofthesestandardsrequiredretrospectiveapplicationresultingina$244,576,005reductionofpreviouslyreportednetpositionatJuly1,2014.Ouropinionisnotmodifiedwithrespecttothismatter.OtherMattersRequiredSupplementaryInformationAccounting principles generally accepted in the United States of America require that the management’sdiscussionandanalysisonpages3 through10,budgetarycomparison informationonpage46, scheduleoffunding progress on page 47, schedule of proportionate share of the net pension liability on page 48, andschedule of contributions on page 49 be presented to supplement the basic financial statements. Suchinformation,althoughnotapartofthebasicfinancialstatements,isrequiredbytheGovernmentalAccountingStandardsBoard,whoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatements in anappropriateoperational, economic, orhistorical context. Wehaveapplied certain limitedprocedures to the required supplementary information in accordance with auditing standards generallyacceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethodsofpreparing the informationandcomparing the information forconsistencywithmanagement’s responses toourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringourauditofthebasicfinancialstatements.Wedonotexpressanopinionorprovideanyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideanyassurance.OtherInformationOur audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprisetheDistrict’sbasicfinancialstatements.Thesupplementaryinformationispresentedforpurposesofadditionalanalysisandisnotarequiredpartofthebasicfinancialstatements.ThescheduleofexpendituresoffederalawardsispresentedforpurposesofadditionalanalysisasrequiredbyU.S.OfficeofManagementandBudget Circular A‐133,Audits of States, LocalGovernments, andNon‐ProfitOrganizations, and is also not arequiredpartofthebasicfinancialstatements.Thesupplementaryinformationonpages52to54and56to59,includingthescheduleofexpendituresoffederalawardsonpage57,aretheresponsibilityofmanagementandwere derived from andrelate directly to the underlying accounting andother records used toprepare thebasic financial statements. Such information has been subjected to the auditing procedures applied in theauditofthebasicfinancialstatementsandcertainadditionalprocedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatements or to the basic financial statements themselves, and other additional procedures in accordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,theinformationisfairlystatedinallmaterialrespectsinrelationtothebasicfinancialstatementsasawhole.Theinformationonpages51and55hasnotbeensubjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsandaccordingly,wedonotexpressanopinionorprovideanyassuranceonit.OtherReportingRequiredbyGovernmentAuditingStandardsInaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedDecember14,2015,on our consideration of the District's internal control over financial reporting and on our tests of itscompliancewithcertainprovisionsof laws,regulations,contracts,andgrantagreementsandothermatters.Thepurposeofthatreportistodescribethescopeofourtestingofinternalcontroloverfinancialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopiniononinternalcontroloverfinancialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the District's internal control over financial reporting andcompliance.

Murrieta,CaliforniaDecember14,2015

3

FigureA‐1.OrganizationofMountDiabloUnifiedSchoolDistrict’sAnnualFinancialReport

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTManagement’sDiscussionandAnalysis(Unaudited)FortheFiscalYearEndedJune30,2015This discussion and analysis of Mount Diablo Unified School District’s financial performance provides anoverview of the District’s financial activities for the fiscal year ended June 30, 2015. Please read it inconjunctionwiththeDistrict’sfinancialstatements,whichimmediatelyfollowthissection.FINANCIALHIGHLIGHTS The District’s financial status decreased overall as a result of this year’s operations. Net position of

governmentalactivitiesdecreasedby$10.3million,or19.7%. Governmentalexpenseswereabout$356.2million.Revenueswereabout$345.9million. TheDistrict spent over $34.1million onnewcapital assetsduring the year. These expenditureswere

incurredprimarilyfromtheMeasureCbonds. The District decreased its outstanding long‐term debt by $57.3 million. This was primarily due to

reductionsinthenetpensionliability. GradesK‐12averagedailyattendance(ADA)decreasedby87,or(0.3)%.OVERVIEWOFTHEFINANCIALSTATEMENTSThis annual report consists of three parts – management discussion and analysis (this section), the basicfinancial statements, and required supplementary information. The basic financial statements include twokindsofstatementsthatpresentdifferentviewsoftheDistrict: Thefirsttwostatementsaredistrict‐widefinancialstatementsthatprovidebothshort‐termandlong‐term

informationabouttheDistrict’soverallfinancialstatus. The remaining statements are fund financial statements that focus on individual parts of the District,

reportingtheDistrict’soperationsinmoredetailthanthedistrict‐widestatements. Thegovernmental fundsstatementstellhowbasicservices likeregularandspecialeducationwere

financedintheshorttermaswellaswhatremainsforfuturespending. Short and long‐term financial information about the activities of the District that operate like

businesses(self‐insurancefunds)areprovidedintheproprietaryfundsstatements. Fiduciary funds statement provides information about the financial relationships in which the

Districtactssolelyasatrusteeoragentforthebenefitofotherstowhomtheresourcesbelong.Thefinancialstatementsalsoinclude notes that explainsome of the information inthe statements and providemore detailed data. FigureA‐1 shows how the variousparts of this annual reportare arranged and related tooneanother.

Management’sDiscussionandAnalysis

BasicFinancial

Information

RequiredSupplementaryInformation

FundFinancialStatements

District‐WideFinancialStatements

NotestoFinancialStatements

SUMMARY DETAIL

4

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTManagement’sDiscussionandAnalysis(Unaudited)FortheFiscalYearEndedJune30,2015

OVERVIEWOFTHEFINANCIALSTATEMENTS(continued)FigureA‐2summarizesthemajorfeaturesoftheDistrict’sfinancialstatements,includingtheportionoftheDistrict’sactivitiestheycoverandthetypesofinformationtheycontain.FigureA‐2.MajorFeaturesoftheDistrict‐WideandFundFinancialStatements

TypeofStatements

District‐Wide

GovernmentalFunds

FiduciaryFunds

Scope EntireDistrict,exceptfiduciaryactivities

TheactivitiesoftheDistrictthatarenotproprietaryorfiduciary,suchasspecialeducationandbuildingmaintenance

InstancesinwhichtheDistrictadministersresourcesonbehalfofsomeoneelse,suchasscholarshipprogramsandstudentactivitiesmonies

Requiredfinancialstatements

StatementofNetPosition

StatementofActivities

BalanceSheet

StatementofRevenues,Expenditures&ChangesinFundBalances

StatementofFiduciaryNetPosition

StatementofChangesinFiduciaryNetPosition

Accountingbasisandmeasurementfocus

Accrualaccountingandeconomicresourcesfocus

Modifiedaccrualaccountingandcurrentfinancialresourcesfocus

Accrualaccountingandeconomicresourcesfocus

Typeofasset/liabilityinformation

Allassetsandliabilities,bothfinancialandcapital,short‐termandlong‐term

Onlyassetsexpectedtobeusedupandliabilitiesthatcomedueduringtheyearorsoonthereafter;nocapitalassetsincluded

Allassetsandliabilities,bothshort‐termandlong‐term;TheDistrict’sfundsdonotcurrentlycontainnonfinancialassets,thoughtheycan

Typeofinflow/outflowinformation

Allrevenuesandexpensesduringyear,regardlessofwhencashisreceivedorpaid

Revenuesforwhichcashisreceivedduringorsoonaftertheendoftheyear;expenditureswhengoodsorserviceshavebeenreceivedandpaymentisdueduringtheyearorsoonthereafter

Allrevenuesandexpensesduringtheyear,regardlessofwhencashisreceivedorpaid

5


OVERVIEWOFTHEFINANCIALSTATEMENTS(continued)Theremainderofthisoverviewsectionofmanagement’sdiscussionandanalysishighlightsthestructureandcontentsofeachofthestatements.District‐WideStatementsThe district‐wide statements report information about the District as a whole using accounting methodssimilartothoseusedbyprivate‐sectorcompanies.ThestatementofnetpositionincludesalloftheDistrict’sassetsand liabilities. Allof thecurrentyear’srevenuesandexpensesareaccountedfor inthestatementofactivitiesregardlessofwhencashisreceivedorpaid.Thetwodistrict‐widestatementsreporttheDistrict’snetpositionandhowithaschanged.Netposition–thedifferencebetweentheDistrict’sassetsanddeferredoutflowsofresourcesandliabilitiesanddeferredinflowsofresources–isonewaytomeasuretheDistrict’sfinancialhealth,orposition. Overtime,increasesanddecreasesintheDistrict’snetpositionareanindicatorofwhetheritsfinancial

positionisimprovingordeteriorating,respectively. ToassesstheoverallhealthoftheDistrict,youneedtoconsideradditionalnonfinancial factorssuchas

changesintheDistrict’sdemographicsandtheconditionofschoolbuildingsandotherfacilities. In the district‐wide financial statements, the District’s activities are categorized as Governmental

Activities. Mostof theDistrict’sbasicservicesare includedhere,suchasregularandspecialeducation,transportation,andadministration.Propertytaxesandstateaidfinancemostoftheseactivities.

FundFinancialStatementsThefundfinancialstatementsprovidemoredetailedinformationabouttheDistrict’smostsignificantfunds–nottheDistrictasawhole.FundsareaccountingdevicestheDistrictusestokeeptrackofspecificsourcesoffundingandspendingonparticularprograms: SomefundsarerequiredbyStatelawandbybondcovenants. TheDistrictestablishesotherfundstocontrolandmanagemoneyforparticularpurposes(likerepaying

itslong‐termdebt)ortoshowthatisproperlyusingcertainrevenues.TheDistricthastwokindsoffunds:1) Governmental funds –Most of theDistrict’s basic services are included in governmental funds,which

generallyfocuson(1)howcashandotherfinancialassetsthatcanreadilybeconvertedtocashflowinand out and (2) the balances left at year‐end that are available for spending. Consequently, thegovernmental funds statements provide a detailed short‐term view that helps you determinewhethertherearemoreorfewerfinancialresourcesthatcanbespentinthenearfuturetofinancetheDistrict’sprograms. Because this informationdoesnotencompass theadditional long‐termfocusof thedistrict‐widestatements,weprovideadditional informationonaseparatereconciliationpage thatexplains therelationship(ordifferences)betweenthem.

6


OVERVIEWOFTHEFINANCIALSTATEMENTS(continued)FundFinancialStatements(continued)

2) Fiduciary funds –TheDistrict is the trustee, or fiduciary, for assets thatbelong toothers, suchas the

studentactivitiesfundsandretireebenefitsfund.TheDistrictisresponsibleforensuringthattheassetsreported in these funds are used only for their intended purposes and by those to whom the assetsbelong. All of the District’s fiduciary activities are reported in a separate statement of fiduciary netposition. We exclude these activities from the district‐wide financial statements because the Districtcannotusetheseassetstofinanceitsoperations.

FINANCIALANALYSISOFTHEDISTRICTASAWHOLENetPosition.TheDistrict’scombinednetpositionwasloweronJune30,2015,thanitwastheyearbefore–decreasing19.7%to($62.5)million(SeeTableA‐1).TableA‐1

VarianceIncrease

2015 2014* (Decrease)Currentassets 166.2$ 194.7$ (28.5)$Capitalassets 563.1 549.7 13.4Totalassets 729.3 744.4 (15.1)Totaldeferredoutflows 27.1 26.1 1.0Currentliabilities 43.2 45.8 (2.6)Long‐termliabilities 719.6 776.9 (57.3)Totalliabilities 762.8 822.7 (59.9)Totaldeferredinflows 56.1 ‐ 56.1NetpositionNetinvestmentincapitalassets 141.2 132.1 9.1Restricted 47.8 52.3 (4.5)Unrestricted (251.5) (236.6) (14.9)

Totalnetposition (62.5)$ (52.2)$ (10.3)$

*Restated

GovernmentalActivities(Inmillions)

Changesinnetposition,governmentalactivities. TheDistrict’stotalrevenuesincreased5.8%to$345.9million(SeeTableA‐2).TheincreaseisdueprimarilytoincreasesinstateaidfromLCFF.The total cost of all programs and services increased 6.9% to $356.2million. The District’s expenses arepredominantlyrelatedtoeducatingandcaringforstudents,77.1%.ThepurelyadministrativeactivitiesoftheDistrict accounted for just 3.2% of total costs. A significant contributor to the increase in costs wasinstructionrelatedcosts.TableA‐2

VarianceIncrease

2015 2014 (Decrease)TotalRevenues 345.9$ 327.1$ 18.8$TotalExpenses 356.2 333.2 23.0Increase(decrease)innetposition (10.3)$ (6.1)$ (4.2)$


7

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTManagement’sDiscussionandAnalysis(Unaudited)FortheFiscalYearEndedJune30,2015FINANCIALANALYSISOFTHEDISTRICT’SFUNDSThe financial performance of theDistrict as awhole is reflected in its governmental funds aswell. As theDistrict completed this year, its governmental funds reported a combined fund balance of $129.6million,which isbelow lastyear’sending fundbalanceof$155.6million. Theprimarycauseof thedecreasedfundbalanceisongoingexpendituresrelatedtothemodernizationprogram.GeneralFundBudgetaryHighlightsOverthecourseoftheyear,theDistrictrevisedtheannualoperatingbudgetseveraltimes.Themajorbudgetamendmentsfallintothesecategories:

Revenues–increasedby$21.8millionprimarilytoreflectfederalandstatebudgetactions. Salariesandbenefitscosts–increased$4.7millionduetostaffingandcollectivebargainingchanges. Other non‐personnel expenses – increased $38.6 million to re‐budget carryover funds and revise

operationalcostestimates.

WhiletheDistrict’sfinalbudgetfortheGeneralFundanticipatedthatexpenditureswouldexceedrevenuesbyabout$30.8million,theactualresultsfortheyearshowthatrevenuesexceededexpendituresbyroughly$9.0million. Actual revenueswere $6.2million less than anticipated, but expenditureswere $46.1million lessthanbudgeted.ThatamountconsistsprimarilyofrestrictedcategoricalprogramdollarsthatwerenotspentasofJune30,2015thatwillbecarriedoverintothe2015‐16budget.CAPITALASSETANDDEBTADMINISTRATIONCapitalAssetsBy the end of 2014‐15 the District had invested $34.1 million in new capital assets, related to ongoingexpenditures related to the District's ongoing modernization program. (More detailed information aboutcapitalassetscanbefoundinNote6tothefinancialstatements).Totaldepreciationexpensefortheyearwasnearly$20.8million.TableA‐3:CapitalAssetsatYear‐End,NetofDepreciation

VarianceIncrease

2015 2014 (Decrease)Land 14.4$ 14.4$ ‐$Improvementofsites 92.5 94.8 (2.3)Buildings 345.6 340.0 5.6Equipment 3.3 3.7 (0.4)Constructioninprogress 107.3 96.8 10.5Total 563.1$ 549.7$ 13.4$


8


CAPITALASSETANDDEBTADMINISTRATION(continued)Long‐TermDebtAtyear‐endtheDistricthad$719.6millioninlong‐termdebt–adecreaseof7.4%fromlastyear–asshowninTableA‐4.(MoredetailedinformationabouttheDistrict’slong‐termliabilitiesispresentedinNote7tothefinancialstatements).TableA‐4:OutstandingLong‐TermDebtatYear‐End

VarianceIncrease

2015 2014* (Decrease)Generalobligationbonds 466.5$ 476.7$ (10.2)$Constructionloan 4.5 4.8 (0.3)Capitalleases 1.2 1.7 (0.5)Compensatedabsences 3.2 3.0 0.2Netpensionliability 206.5 259.5 (53.0)Otherpostemploymentbenefits 37.7 31.2 6.5Total 719.6$ 776.9$ (57.3)$

*Restated


FACTORSBEARINGONTHEDISTRICT’SFUTUREOverviewOn June 16, 2015, the Governor, the Senate President pro Tempore, and the Speaker of the Assemblyannouncedabudgetagreement.TheLegislaturepassedthebudgetbillandrelatedlegislationonFriday,June19.Thebudgetagreementreliesontheadministration’sMay2015estimatesof(1)GeneralFundrevenues,(2)theProposition98minimumguaranteeforschoolsandcommunitycolleges,and(3)budgetreserveanddebtpaymentrequirementsunderProposition2.Schoolandcommunitycollegefundingisthecenterpieceofthe agreement, as administration estimates of the Proposition 98 minimum guarantee have increasedsubstantially over June 2014 levels. With savings resulting from (1) rejection of various administrationproposals,(2)anerrorintheadministration’sMedi‐Calestimates,(3)legislativechangesmadetotheMiddle‐Class Scholarship Program, and (4) other legislative actions, the agreement makesmodest augmentationsoutsideofProposition98aboveMayRevisionlevels.2015‐16toEndWith$4.6BillioninEstimatedTotalReservesThebudgetagreementassumes$115billioninrevenues,a3.3percentincreaseover2014‐15.(Thistotalisnetofthe$1.9billiondepositintheProposition2BudgetStabilizationAccount[BSA].)Thestate’s“bigthree”General Fund taxes—the personal income tax, sales and use tax, and corporation tax—are estimated toincrease at a slightlyhigher rate (4percent). General Fund revenue growthwasmuchhigher in2014‐15,increasing at a very healthy 7.7 percent rate. General Fund spending is largely flat across 2014‐15 and2015‐16,increasingatonly0.8percent. Growthinongoingprogrammaticspending,however,ismaskedbyvarious one‐time actions, including one‐time spending in 2014‐15ondebtpayments andmandatebacklogclaims,andtheendofthe“tripleflip”mechanismusedtofinancethestate’spriordeficitfinancingbonds.Thebudgetends2015‐16with$4.6billioninestimatedtotalreserves, including$1.1billionintheSpecialFundforEconomicUncertainties—thestate’straditionalbudgetreserve—and$3.5billionintheBSA.

9


FACTORSBEARINGONTHEDISTRICT’SFUTURE(continued)Proposition98SubstantialUpwardRevisionstoEstimatesofProposition98MinimumGuaranteeState budgeting for preschool, elementary and secondary schools, and the California Community Colleges(CCC) is based primarily on Proposition 98, approved by voters in 1988. Proposition 98 established aminimumfundingrequirementcommonlycalledtheminimumguarantee. Theestimateofthe2013‐14and2014‐15minimumguaranteeshaveincreased$612millionand$5.4billion,respectivelyfromtheJune2014estimates.Theestimateofthe2015‐16minimumguaranteeis$7.6billion(12percent)higherthanthe2014‐15BudgetAct level. Theseincreasesintheguaranteearedueprimarilytostaterevenuesbeinghigherthanassumedinlastyear’sbudgetpackage. Thebudgetpackagefundsattheselatestestimatesoftheminimumguarantees.LargeUpward2014‐15AdjustmentsResultinRelativelyModestYear‐Over‐YearGrowthGrowthfromtherevised2014‐15levelto2015‐16is$2.1billion(3percent).Thisrelativelymodestgrowthisduetothelargeupwardrevisionto2014‐15notedabove.In2015‐16,totalProposition98fundingis$68.4billion. Of this amount, $49.4 billion is General Fund and $19 billion is local property tax revenue. Thenotable increase in localpropertytaxrevenuefrom2014‐15to2015‐16($2.3billion,14percent) isdue inlargeparttotheendofthetripleflipandtheshiftofassociatedlocalpropertytaxrevenuebackfromcities,counties,andspecialdistrictstoschoolandcommunitycollegedistricts.Growthinlocalpropertytaxrevenueis slightly greater thangrowth in theProposition98minimumguarantee, resulting ina slight reduction inProposition98GeneralFundfrom2014‐15to2015‐16.Per‐StudentFundingIncreasesSignificantlyUnder thebudgetpackage,K‐12per‐student funding increasesonaverage,basedondistrictdemographics,fromthe2014‐15BudgetActlevelof$8,931to$9,942in2015‐16—anincreaseof$1,011(11percent).BudgetPackageContainsManySpendingChangesThebudgetaccountsforhigherLocalControlFundingFormula(LCFF)costsandusestheremainingfundingincrease for paying down the K‐14 mandate backlog. In addition to these changes, the budget packageincludes a $256 million settle‐up payment related to meeting the Proposition 98minimum guarantee for2006‐07 and 2009‐10 and $207 million in unspent prior‐year Proposition 98 funds that have beenrepurposed.PackageNotablyReducesOutstandingK‐14ObligationsThe budget package includes the following K‐14 actions, all of which reduce the state’s outstanding K‐14obligations.

Pays DownMandate Backlog. The budget package includes $3.8 billion to pay down the K‐14mandatebacklog ($3.2billion is for theK‐12backlogand$632million for theCCCbacklog). Afteraccountingforthesepayments,theLAOestimatestheoutstandingK‐14mandatebacklogtobe$1.5billion($1.2billionforschoolsandabout$300millionforcommunitycolleges).

RetiresAllK‐14PaymentDeferrals.Asrequiredbytrailerlegislationenactedlastyear,thebudgetpackageprovides$992milliontoeliminateallremainingK‐14paymentdeferrals. Thebudgetyearwillbethefirstfiscalyearsince2000‐01thatthestateissettomakeallK‐14paymentsontime.

PaysOffEmergencyRepairProgram(ERP)Obligation. Thebudgetincludes$273millionforthefinalERPpayment.Statuterequiresthestatetoprovideatotalof$800milliontoschooldistrictsforemergency facility repairs, and the state has provided $527million to date. (Of the $273million,$145 million comes from a settle‐up payment and $128 million comes from unspent prior‐yearProposition98funds.)

10


FACTORSBEARINGONTHEDISTRICT’SFUTURE(continued)K‐12EducationLargeIncreaseforLocalControlFundingFormula(LCFF)The largest single augmentation in the state budget is $6.0 billion for implementing the LCFF for schooldistrictsandcharterschools—bringingtotalLCFFfundingto$52billion.Thisreflectsa13percentyear‐over‐year increase in LCFF funding. The administration estimates this funding will close 52 percent of theremaining gap to LCFF target rates. The budget funds 90 percent of the estimated statewide full LCFFimplementationcost.SchooldistrictsandcharterschoolsmayuseLCFFmoniesforanyeducationalpurpose,includingimplementationoftheirLocalControlandAccountabilityPlans.NewSecondarySchoolCareerTechnicalEducation(CTE)CompetitiveGrantProgramThebudgetpackageincludes$900millioninone‐timefundingforathree‐yearcompetitivegrantprogramtopromotehigh‐qualityCTE.Ofthisamount,$400millionisprovidedin2015‐16,$300millionin2016‐17,and$200million in2017‐18. Schooldistricts,countyofficesofeducation(COEs),charterschools,andRegionalOccupational Centers and Programs operated by joint powers agencies (JPAs) may apply for grants,individually or in consortia. Theprogramprovides separatepoolsof funding for large,medium‐sized, andsmallapplicants,basedonapplicants’averagedailyattendance(ADA)ingrades7‐12.Specifically,88percentofthefundingisreservedforapplicantswithADAgreaterthan550,8percentisreservedforapplicantswithADA between 140 and 550, and 4 percent is reserved for applicants with less than 140 ADA. TheSuperintendentofPublicInstruction(SPI), incollaborationwiththeexecutivedirectoroftheStateBoardofEducation(SBE),willdeterminethenumberofgrantstobeawardedandspecificgrantamounts.PackageofSpecialEducationActionsThebudgetincludes$67millionforapackageofspecialeducation‐relatedactivities.Ofthe$67million,$52million is ongoing and $15 million is one time. The largest ongoing augmentation in this package is forexpandingservicesforinfants,toddlers,andpreschoolerswithdisabilitiesaswellasrequiringpreschoolstafftraining and parent education relating to identifying andmeetingpreschoolers’ special needs. The largestone‐timeaugmentationisforoneortwoCOEstodevelopstatewideresourcesandtrainingopportunitiesforaddressingstudents’diverseinstructionalandbehavioralneeds.SecondRoundofInternetInfrastructureGrantsThe budget includes $50 million in one‐time funding for the second round of Broadband InternetInfrastructureGrants. TheK‐12HighSpeedNetwork is to awardgrants to schools that cannotadministeronlinetestsorcanonlyadministerthetestsbyshuttingdownotheressentialonlineactivitiessuchasemail.Grantsmay be used to purchase Internet infrastructure. TheDepartment of Finance (DOF)must approveprojectsresultingincostsexceeding$1,000pertest‐takingpupil.All of these factors were considered in preparing theMount Diablo Unified School District budget for the2015‐16fiscalyear.CONTACTINGTHEDISTRICT’SFINANCIALMANAGEMENTThis financial report is designed toprovideour citizens, taxpayers, customers, and investors and creditorswith a general overview of the District’s finances and to demonstrate the District’s accountability for themoney it receives. If you have any questions about this report or need additional financial information,contact theDistrict’sBusinessOfficeatMountDiabloUnifiedSchoolDistrict,1936CarlottaDrive,Concord,California,94519.

Thenotestofinancialstatementsareanintegralpartofthisstatement. 11

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTStatementofNetPositionJune30,2015

TotalGovernmentalActivities

ASSETSCash 136,627,278$Investments 14,614,406Accountsreceivable 14,469,268Inventories 454,138Prepaidexpenses 3,500Non‐depreciablecapitalassets 121,735,801Depreciablecapitalassets 695,764,189Less,accumulateddepreciation (254,426,569)

Totalassets 729,242,011

DEFERREDOUTFLOWSOFRESOURCESPensioncontributionssubsequenttomeasurementdate 16,820,636Deferredamountsonrefunding 10,284,286

Totaldeferredoutflowsofresources 27,104,922

LIABILITIESCashoverdraft 6,135,656Accountspayable 36,103,161Unearnedrevenue 941,843Longtermliabilities:

Dueorpayablewithinoneyear 13,676,602Dueorpayableafteroneyear 705,907,131

Totalliabilities 762,764,393

DEFERREDINFLOWSOFRESOURCESNetdifferencesbetweenprojectedandactualearnings

onplaninvestments 55,237,778Adjustmentduetodifferencesinproportions 819,778

Totaldeferredinflowsofresources 56,057,556

NETPOSITIONNetinvestmentincapitalassets 141,220,512Restrictedfor:

Capitalprojects 8,063,587Debtservice 24,574,120Categoricalprograms 15,137,312

Unrestricted (251,470,547)

Totalnetposition (62,475,016)$


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTStatementofActivitiesFortheFiscalYearEndedJune30,2015

Net(Expense)Operating Capital Revenueand

Chargesfor Grantsand Grantsand ChangesinExpenses Services Contributions Contributions NetPosition

GovernmentalActivitiesInstructionalServices:

Instruction 196,389,034$ 59,681$ 38,702,638$ 1,746$ (157,624,969)$Instruction‐RelatedServices:

Supervisionofinstruction 13,099,640 3,897 5,148,620 ‐ (7,947,123)Instructionallibrary,mediaandtechnology 4,013,216 6,222 375,100 ‐ (3,631,894)Schoolsiteadministration 22,670,387 1,858 565,634 ‐ (22,102,895)

PupilSupportServices:Home‐to‐schooltransportation 9,588,477 3,250 592,373 ‐ (8,992,854)Foodservices 12,881,350 2,883,696 9,363,657 ‐ (633,997)Allotherpupilservices 16,114,475 58,626 5,314,389 ‐ (10,741,460)

GeneralAdministrationServices:Dataprocessingservices 2,743,776 2,322 74,025 ‐ (2,667,429)Othergeneraladministration 8,753,362 103,870 1,634,429 ‐ (7,015,063)

PlantServices 45,313,413 701,407 5,740,728 ‐ (38,871,278)

AncillaryServices 1,420,813 27,217 216,872 ‐ (1,176,724)CommunityServices 26,949 13 5,730 ‐ (21,206)EnterpriseActivities 31 ‐ ‐ ‐ (31)InterestonLong‐termDebt 20,332,668 ‐ ‐ ‐ (20,332,668)OtherOutgo 2,848,424 3,513 883,386 ‐ (1,961,525)

TotalGovernmentalActivities 356,196,015$ 3,855,572$ 68,617,581$ 1,746$ (283,721,116)

GeneralRevenues:

Propertytaxes 142,244,787Federalandstateaidnotrestrictedtospecificpurpose 120,393,858Interestandinvestmentearnings 356,939Miscellaneous 10,440,166

Totalgeneralrevenues 273,435,750

Changeinnetposition (10,285,366)

Netposition‐July1,2014,asoriginallystated 192,386,355

Adjustmentforrestatements(Note1.I.) (244,576,005)

Netposition‐July1,2014,asrestated (52,189,650)

Netposition‐June30,2015 (62,475,016)$

Functions/Programs

ProgramRevenues


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTBalanceSheet–GovernmentalFundsJune30,2015

GeneralFund

BuildingFund

BondInterestandRedemption

Fund

Non‐MajorGovernmental

Funds

TotalGovernmental

FundsASSETS

Cash 85,273,578$ 20,850,877$ 24,567,059$ 5,935,764$ 136,627,278$Investments 1,484,978 ‐ ‐ 13,129,428 14,614,406Accountsreceivable 11,412,000 8,441 7,061 2,029,705 13,457,207Duefromotherfunds 2 13 ‐ 10,261 10,276Inventories 427,936 ‐ ‐ 26,202 454,138Prepaidexpenditures 3,500 ‐ ‐ ‐ 3,500

TotalAssets 98,601,994$ 20,859,331$ 24,574,120$ 21,131,360$ 165,166,805$

LIABILITIESANDFUNDBALANCES

LiabilitiesCashoverdraft ‐$ ‐$ ‐$ 6,135,656$ 6,135,656$Accountspayable 26,128,476 1,781,383 ‐ 594,678 28,504,537Duetootherfunds 10,274 ‐ ‐ 2 10,276Unearnedrevenue 941,843 ‐ ‐ ‐ 941,843

TotalLiabilities 27,080,593 1,781,383 ‐ 6,730,336 35,592,312

FundBalancesNonspendable 736,436 ‐ ‐ 26,202 762,638Restricted 12,179,404 19,077,948 24,574,120 13,080,640 68,912,112Committed ‐ ‐ ‐ 1,294,182 1,294,182Assigned 19,110,390 ‐ ‐ ‐ 19,110,390Unassigned 39,495,171 ‐ ‐ ‐ 39,495,171

TotalFundBalances 71,521,401 19,077,948 24,574,120 14,401,024 129,574,493

TotalLiabilitiesandFundBalances 98,601,994$ 20,859,331$ 24,574,120$ 21,131,360$ 165,166,805$


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPositionJune30,2015

Totalfundbalances‐governmentalfunds 129,574,493$

563,073,421

(37,651,743)

Generalobligationbondspayable (466,501,430)Constructionloanpayable (4,545,225)Capitalleasespayable (1,190,281)Netpensionliability (206,457,458)Compensatedabsencespayable (3,237,596) (681,931,990)

10,284,286

1,012,061

Deferredoutflows 16,820,636Deferredinflows (56,057,556)

(7,598,624)

Totalnetposition‐governmentalactivities (62,475,016)$

Amountsreportedforgovernmentalactivities inthestatementofnetpositionaredifferentbecausecapitalassetsusedforgovernmentalactivitiesarenotfinancialresourcesandthereforearenotreportedasassetsingovernmentalfunds.Thecostoftheassetsis$817,499,990,andtheaccumulateddepreciationis($254,426,569).

Ingovernmentalfunds,postemploymentbenefitscostsarerecognizedasexpendituresintheperiodtheyarepaid.Inthegovernment‐widestatements,postemploymentbenefitscostsarerecognizedintheperiodthattheyareincurred.ThenetOPEBliabilityattheendoftheperiodwas:

Ingovernmentalfunds,onlycurrentliabilitiesarereported.Inthestatementofnetposition,allliabilities,includinglong‐termliabilities,arereported.Long‐termliabilitiesrelatingtogovernmentalactivitiesconsistof:

Ingovernmentalfunds,interestonlong‐termdebtisnotrecognizeduntiltheperiodinwhichitmaturesandispaid.Inthegovernment‐widestatementofactivities,itisrecognizedintheperiodthatitisincurred.Theadditionalliabilityforunmaturedinterestowingattheendoftheperiodwas:

Deferredamountsonrefundingrepresentamountpaidtoanescrowagentinexcessoftheoutstandingdebtatthetimeofthepaymentforrefundedbondswhichhavebeendefeased.Inthegovernment‐widestatementsitisrecognizedasadeferredoutflowofresources.Theremainingdeferredamountsonrefundingattheendoftheperiodwere:

Ingovernmentalfunds,interestsubsidiesreceivedfromthefederalgovernmentarerecognizedintheperiodthattheyarereceived.Inthegovernment‐widestatements,theyarerecognizedintheperiodinwhichtheyareearned.

Ingovernmentalfunds,deferredoutflowsandinflowsofresourcesrelatingtopensionsarenotreportedbecausetheyareapplicabletofutureperiods.Inthestatementofnetposition,deferredoutflowsandinflowsofresourcesrelatingtopensionsarereported.Deferredoutflowsandinflowsofresourcesrelatingtopensionsconsistof:


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTStatementofRevenues,Expenditures,andChangesinFundBalances–GovernmentalFundsFortheFiscalYearEndedJune30,2015

GeneralFund

BuildingFund


Fund


Funds

TotalGovernmental

FundsREVENUES

LCFFsources 222,626,709$ ‐$ ‐$ ‐$ 222,626,709$

Federalsources 20,477,079 ‐ 2,082,240 9,917,098 32,476,417

Otherstatesources 43,949,387 ‐ 277,647 756,553 44,983,587

Otherlocalsources 14,833,542 115,753 29,332,689 7,070,782 51,352,766

TotalRevenues 301,886,717 115,753 31,692,576 17,744,433 351,439,479

EXPENDITURES

Current:

Instruction 191,602,811 ‐ ‐ 3,240,955 194,843,766

Instruction‐relatedservices:

Supervisionofinstruction 12,724,248 ‐ ‐ 445,984 13,170,232

Instructionallibrary,mediaandtechnology 3,871,317 ‐ ‐ 100,082 3,971,399

Schoolsiteadministration 20,868,863 ‐ ‐ 1,678,695 22,547,558

Pupilsupportservices:

Home‐to‐schooltransportation 9,747,833 ‐ ‐ ‐ 9,747,833

Foodservices 1,363 ‐ ‐ 12,870,653 12,872,016

Allotherpupilservices 15,502,938 ‐ ‐ 17,029 15,519,967

Ancillaryservices 1,441,559 ‐ ‐ ‐ 1,441,559

Communityservices 6,289 ‐ ‐ ‐ 6,289

Enterpriseactivities 32 ‐ ‐ ‐ 32

Generaladministrationservices:

Dataprocessingservices 2,780,700 ‐ ‐ ‐ 2,780,700

Othergeneraladministration 8,391,645 ‐ ‐ 44,767 8,436,412

Plantservices 22,111,775 ‐ ‐ 1,864,762 23,976,537

Transfersofindirectcosts (582,745) ‐ ‐ 582,745 ‐

Intergovernmentaltransfers 2,848,424 ‐ ‐ ‐ 2,848,424

Capitaloutlay 1,022,534 33,037,378 ‐ 770,543 34,830,455

Debtservice:

Principal 465,477 ‐ 12,120,000 294,935 12,880,412

Interest 42,122 ‐ 17,594,361 ‐ 17,636,483

TotalExpenditures 292,847,185 33,037,378 29,714,361 21,911,150 377,510,074

Excess(Deficiency)ofRevenues

Over(Under)Expenditures 9,039,532 (32,921,625) 1,978,215 (4,166,717) (26,070,595)

OTHERFINANCINGSOURCES(USES)

Interfundtransfersin ‐ ‐ ‐ 3,276,196 3,276,196

Interfundtransfersout (3,276,196) ‐ ‐ ‐ (3,276,196)

TotalOtherFinancingSourcesandUses (3,276,196) ‐ ‐ 3,276,196 ‐

NetChangeinFundBalances 5,763,336 (32,921,625) 1,978,215 (890,521) (26,070,595)

65,758,065 51,999,573 22,595,905 15,291,545 155,645,088

FundBalances,June30,2015 71,521,401$ 19,077,948$ 24,574,120$ 14,401,024$ 129,574,493$

FundBalances,July1,2014


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTReconciliationoftheGovernmentalFundsStatementofRevenues,Expenditures,andChanges

inFundBalancestotheStatementofActivitiesFortheFiscalYearEndedJune30,2015

Totalnetchangeinfundbalances‐governmentalfunds (26,070,595)$

Amountsreportedforgovernmentalactivities inthestatementofactivitiesaredifferentbecause:

Expendituresforcapitaloutlay 34,137,247Depreciationexpense (20,794,932) 13,342,315

12,880,412

(6,427,350)

1,928,492

128,285

(3,887,219)

(865,744)

(1,118,373)

(195,589)

Changeinnetpositionofgovernmentalactivities (10,285,366)$

Ingovernmentalfunds,accretedinterestoncapitalappreciationbondsisnotrecordedasanexpenditurefromcurrentresources.Inthegovernment‐widestatementofactivities,however,thisisrecordedasinterestexpensefortheperiod.Accretedinterestfortheperiodwas:

Inthestatementofactivities,compensatedabsencesaremeasuredbytheamountsearnedduringtheyear.Inthegovernmentalfunds,however,expendituresfortheseitemsaremeasuredbytheamountoffinancialresourcesused(essentially,theamountsactuallypaid).

Deferredamountsonrefundingrepresentamountspaidtoanescrowagentinexcessoftheoutstandingdebtatthetimeofthepaymentforrefundedbondswhichhavebeendefeased.Inthestatementofactivitiestheseamountsareamortizedovertheshorterofthelifeoftherefundedbondsortherefundingbonds.Thecurrentyearamortizationwas:

Ingovernmentalfunds,ifdebtisissuedatapremiumoratadiscount,thepremiumordiscountisrecognizedasanotherfinancingsourceoranotherfinancinguseintheperioditisincurred.Inthegovernment‐widestatements,thepremiumordiscountisamortizedoverthelifeofthedebt.Amortizationofpremiumsfortheperiodis:

Capitaloutlaysarereportedingovernmentalfundsasexpenditures.However,inthestatementofactivities,thecostofthoseassetsisallocatedovertheirestimatedusefullivesasdepreciationexpense.Thedifferencebetweencapitaloutlayexpendituresanddepreciationexpensefortheperiodis:

Ingovernmentalfunds,repaymentsoflong‐termdebtarereportedasexpenditures.Inthegovernment‐widestatements,repaymentsoflong‐termdebtarereportedasreductionofliabilities.Expendituresforrepaymentoftheprincipalportionoflong‐termdebtwere:

Ingovernmentalfunds,postemploymentbenefitscostsarerecognizedasexpendituresintheperiodtheyarepaid.Inthegovernment‐widestatements,postemploymentbenefitscostsarerecognizedintheperiodthattheyareincurred.TheincreaseinthenetOPEBliabilityattheendoftheperiodwas:

Ingovernmentalfunds,interestonlong‐termdebtisrecognizedintheperiodthatitbecomesdue.Inthegovernment‐widestatementofactivities,itisrecognizedintheperiodthatitisincurred.Unmaturedinterestowingattheendoftheperiod,lessmaturedinterestpaidduringtheperiod,butowingfromthepriorperiod,was:

Ingovernmentfunds,pensioncostsarerecognizedwhenempoyercontributionsaremade.Inthestatementofactivities,pensioncostsarerecognizedontheaccrualbasis.Thisyear,thedifferencebetweenaccrual‐basispensioncostsandactualemployercontributionswas:


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTStatementofFiduciaryNetPositionJune30,2015

TrustFund

DebtServiceFundPrivate‐Purpose Student forSpecialTrustFund BodyFunds AssessmentDebt

ASSETSCash 5,874$ 1,232,665$ 3,026,535$Investments 49,000 ‐ 10,660,686Accountsreceivable 2 ‐ 625

TotalAssets 54,876 1,232,665$ 13,687,846$

LIABILITIESDuetobondholders ‐ ‐$ 13,687,846$Duetostudentgroups ‐ 1,232,665 ‐

TotalLiabilities ‐ 1,232,665$ 13,687,846$

NETPOSITIONRestricted 54,876$

AgencyFunds


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTStatementofChangesinFiduciaryNetPositionFortheFiscalYearEndedJune30,2015

TrustFund

Private‐PurposeTrustFund

ADDITIONSInterest 387$

Changeinnetposition 387

Netposition‐July1,2014 54,489

Netposition‐June30,2015 54,876$

19

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESMountDiabloUnifiedSchoolDistrict(the"District")accountsforitsfinancialtransactionsinaccordancewiththepoliciesandproceduresoftheCaliforniaDepartmentofEducation'sCaliforniaSchoolAccountingManual.The accounting policies of the District conform to accounting principles generally accepted in the UnitedStates of America as prescribed by the Governmental Accounting Standards Board. The following is asummaryofthemoresignificantpolicies:A. ReportingEntity

A reporting entity is comprised of the primary government, component units, and other organizationsthatareincludedtoensurethefinancialstatementsarenotmisleading.TheprimarygovernmentoftheDistrictconsistsofallfunds,departments,andagenciesthatarenotlegallyseparatefromtheDistrict.ForMountDiabloUnifiedSchoolDistrict, this includesgeneraloperations, foodservice,andstudentrelatedactivitiesoftheDistrict.Component units are legally separate organizations for which the District is financially accountable.Componentunitsmayalso includeorganizations thatare fiscallydependenton theDistrict, in that theDistrict approves their budget, the issuance of their debt or the levying of their taxes. In addition,component units are other legally separate organizations for which the District is not financiallyaccountablebutthenatureandsignificanceoftheorganization'srelationshipwiththeDistrictissuchthatexclusionwouldcausetheDistrict'sfinancialstatementstobemisleadingorincomplete.Forfinancialreportingpurposes,thecomponentunitshaveafinancialandoperationalrelationshipwhichmeets the reporting entity definition criteria of theGovernmentalAccounting StandardsBoard (GASB)StatementNo.14,TheFinancialReportingEntity,andthusareincludedinthefinancialstatementsusingtheblendedpresentationmethodasiftheywerepartoftheDistrict'soperationsbecausethegoverningboardofthecomponentunitsisessentiallythesameasthegoverningboardoftheDistrictandbecausetheirpurposeistofinancetheconstructionoffacilitiestobeusedforthedirectbenefitoftheDistrict.TheMountDiabloUnified School District Education Facilities Financing Corporation (the Corporation)financialactivityispresentedinthefinancialstatementsastheCapitalProjectsforBlendedComponentUnits Fund and theDebt Service for Blended ComponentUnits Fund. Certificates of participation andotherdebt issuedbyCorporationare includedas long‐term liabilities in thegovernment‐wide financialstatements.IndividuallypreparedfinancialstatementsarenotpreparedfortheCorporation.

B. BasisofPresentation,BasisofAccounting

1. BasisofPresentationGovernment‐WideFinancialStatementsThestatementofnetpositionandthestatementofactivitiesdisplayinformationabouttheprimarygovernment(theDistrict)anditscomponentunits.Thesestatementsincludethefinancialactivitiesoftheoverallgovernment,exceptforfiduciaryactivities. Eliminationshavebeenmadetominimizethe double‐counting of internal activities. Governmental activities generally are financed throughtaxes,intergovernmentalrevenues,andothernonexchangetransactions.

20

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)B. BasisofPresentation,BasisofAccounting(continued)

1. BasisofPresentation(continued)Government‐WideFinancialStatements(continued)ThestatementofactivitiespresentsacomparisonbetweendirectexpensesandprogramrevenuesforeachfunctionoftheDistrict'sgovernmentalactivities.Directexpensesarethosethatarespecificallyassociatedwithaprogramorfunctionand,therefore,areclearlyidentifiabletoaparticularfunction.Program revenues include (a) fees, fines, and charges paid by the recipients of goods or servicesoffered by the programs and (b) grants and contributions that are restricted to meeting theoperational or capital requirements of a particular program. Revenues that are not classified asprogramrevenues,includingalltaxes,arepresentedasgeneralrevenues.FundFinancialStatementsThefundfinancialstatementsprovide informationabouttheDistrict's funds, including its fiduciaryfunds (andblended componentunits). Separate statements for each fundcategory ‐governmentaland fiduciary ‐arepresented. Theemphasisoffundfinancialstatementsisonmajorgovernmentalfunds, eachdisplayed in a separate column. All remaining governmental and enterprise funds areaggregatedandreportedasnonmajorfunds.MajorGovernmentalFundsTheDistrictreportsthefollowingmajorgovernmentalfunds:

GeneralFund:Thisfundisusedtoaccountforandreportallfinancialresourcesnotaccountedforandreportedinanotherfund.BuildingFund: This fund isusedtoaccountfortheacquisitionofmajorgovernmentalcapitalfacilitiesandbuildingsfromthesaleofgeneralobligationbonds.Bond InterestandRedemptionFund: This Fund is used to account for theaccumulationofresourcesfor,andtherepaymentof,Districtbonds,interest,andrelatedcosts.

Non‐MajorGovernmentalFundsTheDistrictreportsthefollowingnon‐majorgovernmentalfunds:

SpecialRevenueFunds:

Adult Education Fund: This fund is used to account for resources committed to adulteducationprogramsmaintainedbytheDistrict.CafeteriaFund:ThisfundisusedtoaccountforrevenuesreceivedandexpendituresmadetooperatetheDistrict'sfoodserviceoperations.DeferredMaintenance Fund: This fund is used to account for resources committed tomajorrepairorreplacementofDistrictproperty.

21

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)

B. BasisofPresentation,BasisofAccounting(continued)

1. BasisofPresentation(continued)

Non‐MajorGovernmentalFunds(continued)

CapitalProjectsFunds:

CapitalFacilitiesFund:ThisfundisusedtoaccountforresourcesreceivedfromdeveloperimpactfeesassessedunderprovisionsoftheCaliforniaEnvironmentalQualityAct.County School Facilities Fund: This fund is used to account for state apportionmentsprovidedformodernizationofschoolfacilitiesunderSB50.CapitalProjectsFundforBlendedComponentUnits:ThisfundisusedtoaccountfortheactivityoftheCommunityFacilitiesDistricts.

FiduciaryFundsFiduciary fund reporting focuses onnet position and changes in net position. Fiduciary funds areusedtoreportassetsheldinatrusteeoragencycapacityforothersandthereforecannotbeusedtosupport the District’s own programs. The fiduciary fund category includes pension (and otheremployeebenefit)trustfunds,investmenttrustfunds,private‐purposetrustfunds,andagencyfunds.TheDistrictmaintainsthefollowingfiduciaryfunds:

FoundationPrivate‐PurposeTrustFund: Thisfundisusedtoaccountseparatelyforgiftsorbequests per Education Code Section 41031 that benefit individuals, private organizations, orothergovernmentsandunderwhichneitherprincipalnorincomemaybeusedforpurposesthatsupporttheDistrict'sownprograms.Student Body Funds: The District maintains a separate agency fund for each school thatoperates anAssociated StudentBody (ASB)Fund,whether it is organizedornot. TheDistrictmaintains these funds, which are used to account for the raising and expending of money topromote the general welfare, morale, and educational experience of the student body. TheamountsreportedforstudentbodyfundsrepresentthecombinedtotalsofallschoolswithintheDistrictthatmaintainastudentbodyfund.

DebtServiceFundforSpecialAssessmentDebt: Thisagencyfundisusedtoaccountfortheaccumulationofresourcesfor,andtherepaymentofdebtfortheCFDbonds.

22


B. BasisofPresentation,BasisofAccounting(continued)

2. MeasurementFocus,BasisofAccounting

Government‐WideandFiduciaryFundFinancialStatementsThe government‐wide and fiduciary fund financial statements are reported using the economicresources measurement focus and the accrual basis of accounting. Revenues are recorded whenearnedandexpensesarerecordedatthetimeliabilitiesareincurred,regardlessofwhentherelatedcash flows take place. Nonexchange transactions, in which the District gives (or receives) valuewithout directly receiving (or giving) equal value in exchange, include property taxes, grants,entitlements,anddonations. Onanaccrualbasis,revenuefrompropertytaxes isrecognizedinthefiscalyearinwhichalleligibilityrequirementshavebeensatisfied.GovernmentalFundFinancialStatementsGovernmental fundsarereportedusingthecurrent financialresourcesmeasurement focusandthemodifiedaccrualbasisofaccounting.Underthismethod,revenuesarerecognizedwhenmeasurableand available. Expenditures are recorded when the related fund liability is incurred, except forprincipalandinterestongenerallong‐termdebt,claimsandjudgments,andcompensatedabsences,whicharerecognizedasexpenditurestotheextenttheyhavematured.Capitalassetacquisitionsarereportedasexpendituresingovernmentalfunds. Proceedsofgenerallong‐termdebtandfinancingfromcapitalleasesarereportedasotherfinancingsources.

3. Revenues‐ExchangeandNon‐ExchangeTransactionsRevenue resulting from exchange transactions, in which each party gives and receives essentiallyequalvalue,isrecordedontheaccrualbasiswhentheexchangetakesplace. Onamodifiedaccrualbasis, revenue is recorded in the fiscal year in which the resources are measurable and becomeavailable. Available means that the resources will be collected within the current fiscal year.Generally, available is defined as collectiblewithin 60days. However, to achieve comparability ofreportingamongCaliforniadistrictsandsoasnot todistortnormalrevenuepatterns,withspecificrespect to reimbursement grants and corrections to state‐aid apportionments, the CaliforniaDepartment of Education has defined available for districts as collectible within one year. Thefollowing revenue sources are considered to be bothmeasurable and available at fiscal year‐end:Stateapportionments,interest,certaingrants,andotherlocalsources.Non‐exchangetransactions,inwhichtheDistrictreceivesvaluewithoutdirectlygivingequalvalueinreturn, includepropertytaxes,certaingrants,entitlements,anddonations. Revenuefrompropertytaxes isrecognized inthe fiscalyear inwhichthetaxesarereceived. Revenuefromcertaingrants,entitlements,anddonationsisrecognizedinthefiscalyearinwhichalleligibilityrequirementshavebeen satisfied. Eligibility requirements include time and purpose requirements. On a modifiedaccrual basis, revenue from non‐exchange transactions must also be available before it can berecognized.

C. BudgetaryDataThe budgetary process is prescribed by provisions of the California Education Code and requires thegoverningboardtoholdapublichearingandadoptanoperatingbudgetnolaterthanJuly1ofeachyear.TheDistrictgoverningboardsatisfiedtheserequirements.Theadoptedbudgetissubjecttoamendmentthroughouttheyeartogiveconsiderationtounanticipatedrevenueandexpendituresprimarilyresultingfromeventsunknownatthetimeofbudgetadoptionwiththelegalrestrictionthatexpenditurescannotexceedappropriationsbymajorobjectaccount.

23


C. BudgetaryData(continued)

Theamountsreportedastheoriginalbudgetedamountsinthebudgetarystatementsreflecttheamountswhentheoriginalappropriationswereadopted.Theamountsreportedasthefinalbudgetedamountsinthebudgetarystatementsreflecttheamountsafterallbudgetamendmentshavebeenaccountedfor.Forbudgetpurposes,onbehalfpaymentshavenotbeen includedasrevenueandexpendituresasrequiredundergenerallyacceptedaccountingprinciples.

D. EncumbrancesEncumbranceaccounting isused inallbudgeted funds toreserveportionsofapplicableappropriationsforwhichcommitmentshavebeenmade.Encumbrancesarerecordedforpurchaseorders,contracts,andother commitmentswhen they arewritten. Encumbrances are liquidatedwhen the commitments arepaid.AllencumbrancesareliquidatedasofJune30.

E. Assets,DeferredOutflowsofResources,Liabilities,DeferredInflowsofResources,andNet

Position1. CashandCashEquivalents

The District considers cash and cash equivalents to be cash on hand and demand deposits. Inaddition, because theTreasuryPool is sufficiently liquid to permitwithdrawal of cash at any timewithoutpriornoticeorpenalty,equityinthepoolisalsodeemedtobeacashequivalent.

2. InventoriesandPrepaidItemsInventoriesarevaluedatcostusingthefirst‐in/first‐out(FIFO)method.Thecostsofgovernmentalfund‐typeinventoriesarerecordedasexpenditureswhenconsumedratherthanwhenpurchased.Certainpaymentstovendorsreflectcostsapplicabletofutureaccountingperiodsandarerecordedasprepaiditems.

3. CapitalAssetsPurchased or constructed capital assets are reported at cost or estimatedhistorical cost. Donatedfixed assets are recorded at their estimated fair value at thedateofdonation. The costofnormalmaintenanceandrepairs thatdonotaddtothevalueof theassetormateriallyextendassets' livesarenotcapitalized.Capital assets are depreciated using the straight‐line method over the following estimated usefullives:

Description EstimatedLives

BuildingsandImprovements 30yearsFurnitureandEquipment 5‐20yearsVehicles 8years

4. UnearnedRevenue

Unearned revenue arises when potential revenue does not meet both the "measurable" and"available" criteria for recognition in the current period or when resources are received by theDistrict prior to the incurrence of qualifying expenditures. In subsequent periods, when bothrevenue recognition criteria are met, or when the District has a legal claim to the resources, theliability for unearned revenue is removed from the combined balance sheet and revenue isrecognized.

24

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)E. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net

Position(continued)

4. UnearnedRevenue(continued)Certaingrantsreceivedthathavenotmeteligibilityrequirementsarerecordedasunearnedrevenue.On the governmental fund financial statements, receivables that will not be collected within theavailableperiodarealsorecordedasunearnedrevenue.

5. DeferredOutflows/InflowsofResourcesIn addition to assets, the statement of net position will sometimes report a separate section fordeferred outflows of resources. This separate financial statement element, deferred outflows ofresources,representsaconsumptionofnetpositionthatappliestoafutureperiodandsowillnotberecognizedasanoutflowofresources(expense/expenditure)untilthen.TheDistricthastwoitemsthatqualify for reporting in thiscategory. The first item is to recognizecontributionsmadeto thepensionplanafterthemeasurementdateofthenetpensionliability.Thesecondisdeferredamountson refunding, which resulted from the difference in the carrying value of refunded debt and itsreacquisitionprice. Thisamountisshownasdeferredandamortizedovertheshorterofthelifeoftherefundedorrefundingdebt.Inaddition to liabilities, the statementofnetpositionwill sometimes reporta separate section fordeferred inflows of resources. This separate financial statement element, deferred inflows ofresources, represents an acquisition of net position that applies to a future period andwill not berecognizedasan inflowofresources(revenue)until that time. TheDistricthastwo itemsthatarereportedasdeferredinflowsofresources. TheseitemsrecognizetheDistrict'sproportionateshareof the deferred inflows of resources related to its pension plans as more fully described in thefootnoteentitled"PensionPlans".

6. CompensatedAbsencesThe liability for compensated absences reported in the government‐wide statements consists ofunpaid, accumulated vacation leave balances. The liability has been calculated using the vestingmethod,inwhichleaveamountsforbothemployeeswhocurrentlyareeligibletoreceiveterminationpayments and other employeeswho are expected to become eligible in the future to receive suchpaymentsuponterminationareincluded.

7. PensionsFor purposes of measuring the net pension liability and deferred outflows/inflows of resourcesrelated to pensions, and pension expense, information about the fiduciary net position of theDistrict's California State Teachers Retirement System (CalSTRS) and California Public Employees'RetirementSystem(CalPERS)plansandadditionto/deductionsfromthePlans'fiduciarynetpositionhave been determined on the same basis as they are reported by CalSTRS and CalPERS. For thispurpose,benefitpayments(includingrefundsofemployeecontributions)arerecognizedwhendueandpayableinaccordancewiththebenefitterms.Investmentsarereportedatfairvalue.

25


Position(continued)

8. FundBalancesThefundbalanceforgovernmentalfundsisreportedinclassificationsbasedontheextenttowhichthegovernment isboundtohonorconstraintsonthespecificpurposesforwhichamounts inthosefundscanbespent.Nonspendable: Fund balance is reported as nonspendable when the resources cannot be spentbecausetheyareeitherinanonspendableformorlegallyorcontractuallyrequiredtobemaintainedintact.Resourcesinnonspendableformincludeinventoriesandprepaidassets.Restricted: Fund balance is reported as restricted when the constraints placed on the use ofresourcesareeitherexternallyimposedbycreditors,grantors,contributors,orlawsorregulationsofothergovernments;orimposedbylawthroughconstitutionalprovisionorbyenablinglegislation.Committed:TheDistrict'shighestdecision‐makinglevelofauthorityrestswiththeDistrict'sBoard.Fund balance is reported as committed when the Board passes a resolution that places specifiedconstraints on how resources may be used. The Board can modify or rescind a commitment ofresourcesthroughpassageofanewresolution.Assigned:ResourcesthatareconstrainedbytheDistrict'sintenttousethemforaspecificpurpose,but are neither restricted nor committed, are reported as assigned fund balance. Intent may beexpressedbyeithertheBoard,committees(suchasbudgetorfinance),orofficialstowhichtheBoardhasdelegatedauthority.Unassigned: Unassigned fund balance represents fund balance that has not been restricted,committed,orassignedandmaybeutilizedbytheDistrictforanypurpose.Whenexpendituresareincurred,andbothrestrictedandunrestrictedresourcesareavailable,itistheDistrict'spolicytouserestrictedresourcesfirst,thenunrestrictedresourcesintheorderofcommitted,assigned,andthenunassigned,astheyareneeded.

9. NetPosition

Net position is classified into three components: net investment in capital assets; restricted; andunrestricted.Theseclassificationsaredefinedasfollows: Net investment in capitalassets ‐ This component of net position consists of capital assets,

including restricted capital assets, net of accumulated depreciation and reduced by theoutstandingbalancesofanybonds,mortgages,notes,orotherborrowingsthatareattributabletothe acquisition, construction, or improvement of those assets. If there are significant unspentrelateddebtproceedsatyear‐end,theportionofthedebtattributabletotheunspentproceedsarenotincludedinthecalculationofnetinvestmentincapitalassets.Rather,thatportionofthedebtisincludedinthesamenetpositioncomponentastheunspentproceeds.

26


Position(continued)

9. NetPosition(continued)

Restricted ‐This componentofnetposition consistsof constraintsplacedonnetpositionusethroughexternal constraints imposedby creditors (suchas throughdebt covenants), grantors,contributors,orlawsorregulationsofothergovernmentsorconstraintsimposedbylawthroughconstitutionalprovisionsorenablinglegislation.

Unrestrictednetposition‐Thiscomponentofnetpositionconsistsofnetpositionthatdoesnotmeetthedefinitionof"netinvestmentincapitalassets"or"restricted".

Whenbothrestrictedandunrestrictedresourcesareavailableforuse,itistheDistrict'spolicytouserestrictedresourcesfirst,thenunrestrictedresourcesastheyareneeded.

F. MinimumFundBalancePolicy

Duringthe2010‐11fiscalyear,pursuanttoGASBStatementNo.54,theDistrictadoptedaminimumfundbalance policy for the General Fund in order to protect the District against revenue shortfalls orunpredicted expenditures. The policy requires a Reserve for Economic Uncertainties consisting ofunassigned amounts equal to no less than two percent of total General Fund expenditures and otherfinancinguses.Whenanexpenditureisincurredforpurposesforwhichbothrestrictedandunrestrictedfundbalanceisavailable, the District considers restricted funds to have been spent first. When an expenditure isincurredforwhichcommitted,assigned,orunassignedfundbalancesareavailable,theDistrictconsidersamounts to have been spent first out of committed funds, then assigned funds, and finally unassignedfunds, asneededunless thegoverningboardhasprovidedotherwise in its commitmentorassignmentactions.

G. PropertyTaxCalendar

The County is responsible for the assessment, collection, and apportionment of property taxes for alljurisdictions including the schools and special districts within the County. The Board of Supervisorslevies property taxes as of September 1 on property values assessed on July 1. Secured property taxpaymentsaredueintwoequalinstallments.ThefirstisgenerallydueNovember1andisdelinquentwithpenaltiesonDecember10,andthesecondisgenerallydueonFebruary1andisdelinquentwithpenaltiesonApril10.SecuredpropertytaxesbecomealienonthepropertyonJanuary1.

H. UseofEstimates

The preparation of financial statements in conformity with generally accepted accounting principlesrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpendituresduringthereportedperiod. Actualresultscoulddifferfromthoseestimates.

27

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)I. NewGASBPronouncements

Duringthe2014‐15fiscalyear,thefollowingGASBPronouncementsbecameeffective:1. StatementNo.68,AccountingandFinancialReporting forPensions ‐AnAmendmentofGASB

StatementNo.27(Issued06/12)TheprimaryobjectiveofthisStatementistoimproveaccountingandfinancialreportingbystateandlocal governments for pensions. It also improves information provided by state and localgovernmentalemployersaboutfinancialsupportforpensionsthatisprovidedbyotherentities.ThisStatement results from a comprehensive review of the effectiveness of existing standards ofaccountingandfinancialreportingforpensionswithregardtoprovidingdecision‐usefulinformation,supporting assessments of accountability and interperiod equity, and creating additionaltransparency.ThisStatementreplacestherequirementsofStatementNo.27,AccountingforPensionsbyStateandLocalGovernmentalEmployers,aswellastherequirementsofStatementNo.50,PensionDisclosures,as they relate to pensions that are provided through pension plans administered as trusts orequivalentarrangements(hereafterjointlyreferredtoastrusts)thatmeetcertaincriteria.ThisStatementestablishesstandardsformeasuringandrecognizingliabilities,deferredoutflowsofresources, and deferred inflows of resources, and expense/expenditures. For defined benefitpensions, this Statement identifies the methods and assumptions that should be used to projectbenefitpayments,discountprojectedbenefitpaymentstotheiractuarialpresentvalue,andattributethatpresentvaluetoperiodsofemployeeservice.Cost‐SharingEmployersInfinancialstatementspreparedusingtheeconomicresourcesmeasurementfocusandaccrualbasisofaccounting,acost‐sharingemployerthatdoesnothaveaspecial fundingsituation isrequiredtorecognize a liability for its proportionate share of the net pension liability (of all employers forbenefits provided through the pension plan)—the collective net pension liability. An employer’sproportion is required to be determined on a basis that is consistent with the manner in whichcontributions to the pension plan are determined, and consideration should be given to separaterates, if any, related to separate portions of the collective net pension liability. The use of theemployer’s projected long‐term contribution effort as compared to the total projected long‐termcontribution effort of all employers as the basis for determining an employer’s proportion isencouraged.

A cost‐sharingemployer is required to recognizepensionexpenseandreportdeferredoutflowsofresources and deferred inflows of resources related to pensions for its proportionate shares ofcollective pension expense and collective deferred outflows of resources and deferred inflows ofresourcesrelatedtopensions.

28

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE1–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)I. NewGASBPronouncements(continued)

2. StatementNo.71,PensionTransition forContributionsMadeSubsequent to theMeasurement

Date‐AnAmendmentofGASBStatementNo.68(Issued11/13)The objective of this Statement is to address an issue regarding application of the transitionprovisionsofStatementNo.68,AccountingandFinancialReportingforPensions.Theissuerelatestoamounts associated with contributions, if any, made by a state or local government employer ornonemployercontributingentitytoadefinedbenefitpensionplanafterthemeasurementdateofthegovernment'sbeginningnetpensionliability.Statement68requiresastateorlocalgovernmentemployer(ornonemployercontributingentityinaspecial funding situation) to recognize a net position liability measured as of a date (themeasurement date) no earlier than the end of its prior fiscal year. If a state or local governmentemployerornonemployercontributingentitymakesacontributiontoadefinedbenefitpensionplanbetweenthemeasurementdateofthereportednetpensionliabilityandtheendofthegovernment'sreportingperiod,Statement68requiresthatthegovernmentrecognizeitscontributionasadeferredoutflow of resources. In addition, Statement 68 requires recognition of deferred outflows ofresourcesanddeferredinflowsofresourcesforchangesinthenetpensionliabilityofastateorlocalgovernmentemployerornonemployercontributingentitythatarisefromothertypesofevents. AttransitiontoStatement68,ifitisnotpracticalforanemployerornonemployercontributingentitytodetermine the amounts of all deferred outflows of resources and deferred inflows of resourcesrelated to pensions, paragraph137of Statement 68 required that beginning balances for deferredoutflowsofresourcesanddeferredinflowsofresourcesnotbereported.Consequently,ifitisnotpracticaltodeterminetheamountsofalldeferredoutflowsofresourcesanddeferredinflowsofresourcesrelatedtopensions,contributionsmadeafterthemeasurementdateofthebeginningnetpensionliabilitycouldnothavebeenreportedasdeferredoutflowsofresourcesattransition.Thiscouldhaveresultedinasignificantunderstatementofanemployerornonemployercontributingentity'sbeginningnetpositionandexpenseintheinitialperiodofimplementation.ThisStatementamendsparagraph137ofStatement68torequirethat,at transition,agovernmentrecognize a beginning deferred outflow of resources for its pension contributions, if any, madesubsequent to the measurement date of the beginning net pension liability. Statement 68, asamended,continuestorequirethatbeginningbalancesforotherdeferredoutflowsofresourcesanddeferred inflowsof resources related topensionsbe reported at transitiononly if it ispractical todetermineallsuchamounts.The provisions of this Statement are required to be applied simultaneouslywith the provisions ofStatement68.

3. CumulativeEffectofChangeinAccountingPrinciple

Accounting changes adopted to conform to the provisions of these statements should be appliedretroactively.TheresultoftheimplementationofthesestandardswastodecreasethenetpositionatJuly 1, 2013 by $244,576,005, which is the amount of net pension liability, net of the deferredoutflowsofresourcesrelatedtopensionsatJuly1,2014.

29

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE2–CASHANDINVESTMENTSCashandinvestmentsatJune30,2015,arereportedatfairvalueandconsistedofthefollowing:

RatingGovernmentalFunds/Activities

FiduciaryFunds

PooledFunds:Cashincountytreasury 135,936,824$ 3,032,409$Cashoverdraftincountytreasury (6,135,656) ‐

Deposits:Cashonhandandinbanks 374,290 1,232,665Cashcollectionsawaitingdeposit 11,164 ‐Cashinrevolvingfund 305,000 ‐

TotalCash 130,491,622$ 4,265,074$

Investments:LocalAgencyInvestmentFund(LAIF) Notrated 14,614,406$ 49,000$CaliforniaAssetManagementProgram(CAMP) Notrated ‐ 10,660,686

TotalInvestments 14,614,406$ 10,709,686$

PooledFundsIn accordancewithEducationCodeSection41001, theDistrictmaintains substantiallyallof its cash in theCounty Treasury. The County pools and invests the cash. These pooled funds are carried at cost whichapproximatesfairvalue.Interestearnedisdepositedannuallytoparticipatingfunds.Anyinvestmentlossesareproportionatelysharedbyallfundsinthepool.Because theDistrict's deposits aremaintained in a recognizedpooled investment fundunder the careof athirdpartyandtheDistrict'sshareofthepooldoesnotconsistofspecific,identifiableinvestmentsecuritiesownedbytheDistrict,nodisclosureoftheindividualdepositsandinvestmentsorrelatedcustodialcreditriskclassificationsisrequired.Inaccordancewithapplicablestate laws, theCountyTreasurermay invest inderivativesecuritieswith theState of California. However, at June 30, 2015, the County Treasurer has represented that the PooledInvestmentFundcontainednoderivativesorotherinvestmentswithsimilarriskprofiles.

CustodialCreditRisk–DepositsCustodialcreditriskistheriskthatintheeventofabankfailure,theDistrict’sdepositsmaynotbereturnedtoit.TheDistrictdoesnothaveapolicyforcustodialcreditriskfordeposits.Cashbalancesheldinbanksareinsuredupto$250,000bytheFederalDepositoryInsuranceCorporation(FDIC)andarecollateralizedbytherespective financial institutions. In addition, the California Government Code requires that a financialinstitutionsecuredepositsmadebyStateorlocalgovernmentalunitsbypledgingsecuritiesinanundividedcollateralpoolheldbyadepositoryregulatedunderStatelaw(unlesssowaivedbythegovernmentalunit).Themarketvalueofthepledgedsecuritiesinthecollateralpoolmustequalatleast110percentofthetotalamount deposited by the public agencies. California law also allows financial institutions to secure publicdeposits by pledging first trust deedmortgage notes having a value of 150 percent of the secured publicdepositsandlettersofcredit issuedbytheFederalHomeLoanBankofSanFranciscohavingavalueof105percentofthesecureddeposits.

30

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015

NOTE2–CASHANDINVESTMENTS(continued)CustodialCreditRisk‐Deposits(continued)AsofJune30,2015,$1,149,348oftheDistrict’sbankbalancewasexposedtocustodialcreditriskbecauseitwasuninsuredandcollateralizedwithsecuritiesheldbythepledgingfinancialinstitution’strustdepartmentoragency,butnotinthenameoftheDistrict.Investments‐InterestRateRiskTheDistrict'sinvestmentpolicylimitsinvestmentmaturitiesasameansofmanagingitsexposuretofairvaluelossesarisingfromincreasinginterestrates.TheDistrict'sinvestmentpolicylimitsinvestmentpurchasestoinvestmentswithatermnottoexceedthreeyears.InvestmentspurchasedwithmaturitytermsgreaterthanthreeyearsrequireapprovalbytheBoardofEducation.InvestmentspurchasedwithmaturitiesgreaterthanoneyearrequirewrittenapprovalbytheSuperintendentpriortocommitment.MaturitiesofinvestmentsheldatJune30,2015,consistedofthefollowing:

LessThan OneYearThroughFairvalue OneYear FiveYears

LocalAgencyInvestmentFund(LAIF) 14,663,406$ 14,663,406$ ‐$CAMPPool‐MoneyMarket 10,660,686 10,660,686 ‐

25,324,092$ 25,324,092$ ‐$

Maturity

Investments‐CreditRiskTheDistrict's investmentpolicy limits investmentchoices toobligationsof local, stateandfederalagencies,commercialpaper,certificatesofdeposit, repurchaseagreements,corporatenotes,bankeracceptances,andother securities allowed by State Government Code Section 53600. At June 30, 2015, all investmentsrepresented governmental securitieswhichwere issued, registered and held by the District's agent in theDistrict'sname.Investments‐ConcentrationofCreditRiskTheDistrictdoesnotplacelimitsontheamountitmayinvestinanyoneissuer.AtJune30,2015,theDistricthadthefollowinginvestmentthatrepresentedmorethanfivepercentoftheDistrict'snetinvestments.

LocalAgencyInvestmentFund(LAIF) 57.9%CAMPPool‐MoneyMarket 42.1%

31


NOTE3–ACCOUNTSRECEIVABLEAccountsreceivableasofJune30,2015,consistedofthefollowing:

GeneralFund

BuildingFund


Fund


Funds TotalsFederalGovernment:Categoricalaidprograms 4,594,260$ ‐$ ‐$ 1,801,781$ 6,396,041$

StateGovernment:LCFF 302,609 ‐ ‐ ‐ 302,609Lottery 1,330,056 ‐ ‐ ‐ 1,330,056Categoricalaidprograms 1,193,839 ‐ ‐ 95,100 1,288,939

Local:Interest 27,352 8,441 7,061 9,992 52,846MentalHealth 2,171,887 ‐ ‐ ‐ 2,171,887Miscellaneous 1,791,997 ‐ ‐ 122,832 1,914,829

Total 11,412,000$ 8,441$ 7,061$ 2,029,705$ 13,457,207$

NOTE4–INTERFUNDTRANSACTIONSA. BalancesDueTo/FromOtherFunds

Balancesdueto/fromotherfundsatJune30,2015,consistedofthefollowing:

AdultEducationFundduetoGeneralFundforPerkinsfunding 2$GeneralFundduetoAdultEducationFundtoadjustpayrollfundingsource 6,354GeneralFundduetoCafeteriaFundforcatering 3,907GeneralFundduetoBuildingFundtocorrectinterestrevenue 13

10,276$

B. TransfersTo/FromOtherFundsDuringthe2014‐15fiscalyear,theGeneralFundtransferred$3,276,196totheAdultEducationFundtomeettherequiredmaintenanceofeffort.

32

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE5–FUNDBALANCESAtJune30,2015,fundbalancesoftheDistrict’sgovernmentalfundswereclassifiedasfollows:

BondInterest Non‐MajorGeneral Building andRedemption GovernmentalFund Fund Fund Funds Total

Nonspendable:Revolvingcash 305,000$ ‐$ ‐$ ‐$ 305,000$Storesinventories 427,936 ‐ ‐ 26,202 454,138Prepaidexpenditures 3,500 ‐ ‐ ‐ 3,500

TotalNonspendable 736,436 ‐ ‐ 26,202 762,638Restricted:

Categoricalprograms 12,179,404 ‐ ‐ 28,172 12,207,576Foodserviceprogram ‐ ‐ ‐ 2,931,706 2,931,706Capitalprojects ‐ 19,077,948 ‐ 10,120,762 29,198,710Debtservice ‐ ‐ 24,574,120 ‐ 24,574,120

TotalRestricted 12,179,404 19,077,948 24,574,120 13,080,640 68,912,112Committed:

Adulteducationprogram ‐ ‐ ‐ 1,285,771 1,285,771Deferredmaintenanceprogram ‐ ‐ ‐ 8,411 8,411

TotalCommitted ‐ ‐ ‐ 1,294,182 1,294,182Assigned:

Sitecarryover 4,736,104 ‐ ‐ ‐ 4,736,104Supplementalandtargetedinstruction 14,374,286 ‐ ‐ ‐ 14,374,286

TotalAssigned 19,110,390 ‐ ‐ ‐ 19,110,390Unassigned:

Reserveforeconomicuncertainties 8,577,749 ‐ ‐ ‐ 8,577,749Remainingunassignedbalances 30,917,422 ‐ ‐ ‐ 30,917,422

TotalUnassigned 39,495,171 ‐ ‐ ‐ 39,495,171

Total 71,521,401$ 19,077,948$ 24,574,120$ 14,401,024$ 129,574,493$

33

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE6–CAPITALASSETSANDDEPRECIATIONCapitalassetactivityfortheyearendedJune30,2015,wasasfollows:

Balance, Balance,

July1,2014 Additions Deletions June30,2015Capitalassetsnotbeingdepreciated:Land 14,436,462$ ‐$ ‐$ 14,436,462$Constructioninprogress 96,805,307 10,494,032 ‐ 107,299,339Totalcapitalassetsnotbeingdepreciated 111,241,769 10,494,032 ‐ 121,735,801

Capitalassetsbeingdepreciated:Improvementofsites 105,220,560 1,180,158 ‐ 106,400,718Buildings 549,032,200 22,264,520 ‐ 571,296,720Equipment 17,868,214 198,537 ‐ 18,066,751

Totalcapitalassetsbeingdepreciated 672,120,974 23,643,215 ‐ 695,764,189Accumulateddepreciationfor:Improvementofsites (10,407,752) (3,498,387) ‐ (13,906,139)Buildings (209,087,547) (16,626,547) ‐ (225,714,094)Equipment (14,136,338) (669,998) ‐ (14,806,336)

(233,631,637) (20,794,932) ‐ (254,426,569)Totalcapitalassetsbeingdepreciated,net 438,489,337 2,848,283 ‐$ 441,337,620

Governmentalactivitycapitalassets,net 549,731,106$ 13,342,315 ‐ 563,073,421$

Depreciationexpensewaschargedtogovernmentalactivitiesasfollows:

Instruction 10,157$InstructionalSupervision 8,127PupilServices 499,019AllOtherGeneralAdministration 79,724PlantServices 20,197,905

Total 20,794,932$

NOTE7–GENERALLONG‐TERMDEBTChangesinlong‐termdebtfortheyearendedJune30,2015,wereasfollows:

Balance, Balance, AmountDueJuly1,2014* Additions Deductions June30,2015 WithinOneYear

GeneralObligationBonds:Principalrepayments 434,220,057$ ‐$ 12,120,000$ 422,100,057$ 11,267,272$Accretedinterestcomponent 11,265,250 3,887,219 ‐ 15,152,469 157,728Unamortizedissuancepremium 31,177,396 ‐ 1,928,492 29,248,904 1,928,492Total‐Bonds 476,662,703 3,887,219 14,048,492 466,501,430 13,353,492ConstructionLoan 4,840,160 ‐ 294,935 4,545,225 ‐CapitalLeases 1,655,758 ‐ 465,477 1,190,281 323,110CompensatedAbsences 3,042,007 195,589 ‐ 3,237,596 ‐Netpensionliability* 259,514,304 ‐ 53,056,846 206,457,458 ‐OtherPostemploymentBenefits 31,224,393 6,427,350 ‐ 37,651,743 ‐

Totals 776,939,325$ 10,510,158$ 67,865,750$ 719,583,733$ 13,676,602$

*BeginningbalancehasbeenrestatedtoreflecttheretroactiveimplementationofGASBStatementNo.68forthenetpensionliability.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE7–GENERALLONG‐TERMDEBT(continued)PaymentsontheGeneralObligationBondsaremadefromtheBondInterestandRedemptionFund.Paymentson the construction loan are made from the Capital Facilities Fund. Payments on the capitalized leaseobligations are made from the General Fund. Payments for postemployment benefits and compensatedabsencesaremadefromthefundforwhichtherelatedemployeeworked.A. GeneralObligationBonds

2002Election(MeasureC)InageneralelectionheldonMarch5,2002,thevotersapproved$250millionofgeneralobligationbondsforthepurposeofimprovingthehealthandsafetyconditionsoftheschools.2010Election(MeasureC)InageneralelectionheldonJune8,2010,thevotersapproved$348millionofgeneralobligationbondsforthepurposeoffinancingtheconstruction,acquisition,furnishing,andequippingofDistrictfacilities,andtoprepaycertainoutstandingleasepurchaseobligations.A portion of the bonds, issued as 2010 Series B, were designated as “New Clean Renewable EnergyBonds”. Another portion of the bonds, issued as 2011 Series C, were designated as “Qualified SchoolConstruction Bonds” under the provisions of the American Recovery and Reinvestment Act of 2009(“ARRA”),withadirectpaymenttobepaidtotheDistrictbytheUnitedStatesTreasury(the“Treasury”)for each payment of interest due on the bonds. The District is obligated to deposit any cash subsidypaymentsitreceivesintothedebtservicefundfortheBonds.

RefundingBondsInpreviousyears,beginningin2011,theDistricthasissuedrefundingbondstoadvancerefundcertainofthe District’s previously issued and outstanding Measure C bonds. Net proceeds from the refundingbonds were used to purchase U.S. government securities. Those securities were deposited into anirrevocable trust with an escrow agent to provide for future debt service payments on the refundedbonds. As a result, the refunded bonds are considered to be defeased, and the related liability for thebondshasbeenremovedfromtheDistrict'sliabilities.

Amountspaidtotherefundedbondescrowagentinexcessoftheoutstandingdebtatthetimeofpaymentare recorded asdeferred amounts on refundingon the statementofnetpositionandareamortized tointerest expense over the life of the liability. As of June 30, 2015, deferred amounts on refunding of$10,284,286remaintobeamortized,andthereisnoprincipalbalanceoutstandingonthedefeaseddebt.SourceofRepaymentonBondsTheBondsaregeneralobligationsof theDistrictonly.TheBoardof Supervisorsof theCountyhas thepowerandisobligatedtolevyandcollectadvalorempropertytaxesforeachfiscalyearuponthetaxablepropertyoftheDistricttopaytheprincipalandinterestoneachbondastheybecomedueandpayable.

35

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE7–GENERALLONG‐TERMDEBT(continued)A. GeneralObligationBonds(continued)

Asummaryofoutstandinggeneralobligationbondsissuedispresentedbelow:

Amountof Outstanding, Redeemed Outstanding,

InterestRate DateofIssue MaturityDate OriginalIssue July1,2014 Additions DuringYear June30,2015MeasureC(2002)

Series2004 3.0%‐5.625% 7/1/2004 7/1/2029 121,000,000$ 4,025,000$ ‐$ 4,025,000$ ‐$MeasureC(2010)

SeriesA 2.46%‐4.70% 9/30/2010 8/1/2035 50,456,475 50,456,475 ‐ ‐ 50,456,475SeriesB 1.244%‐5.048% 9/30/2010 8/1/2027 59,540,000 57,855,000 ‐ ‐ 57,855,000SeriesC 2.0%‐5.4% 4/12/2011 8/1/2025 3,865,000 3,860,000 ‐ ‐ 3,860,000SeriesD 3.22%‐5.5% 4/12/2011 8/1/2031 7,133,582 7,133,582 ‐ ‐ 7,133,582SeriesE 0.3%‐5.0% 6/20/2012 6/1/2037 149,995,000 142,890,000 ‐ 5,830,000 137,060,000

RefundingIssuesSeries2011 2.0%‐5.0% 6/21/2011 8/1/2026 37,790,000 32,225,000 ‐ 2,025,000 30,200,000SeriesB 2.0%‐5.0% 12/29/2011 7/1/2023 43,700,000 42,405,000 ‐ 90,000 42,315,000SeriesB‐2 2.0%‐5.0% 4/5/2012 7/1/2029 40,540,000 39,955,000 ‐ ‐ 39,955,000SeriesC 2.0%‐5.0% 4/10/2013 6/1/2031 54,015,000 53,415,000 ‐ 150,000 53,265,000

434,220,057$ ‐$ 12,120,000$ 422,100,057$

AccretedInterest:2010,SeriesA 10,920,156$ 3,735,414$ ‐$ 14,655,570$2010,SeriesD 345,094 151,805 ‐ 496,899

11,265,250$ 3,887,219$ ‐$ 15,152,469$

Bond

TheannualrequirementstoamortizegeneralobligationbondsoutstandingatJune30,2015,isasfollows:

FiscalYear Principal Interest Total

2015‐2016 11,267,272$ 17,410,300$ 28,677,572$2016‐2017 10,607,351 17,065,607 27,672,9582017‐2018 11,913,230 16,648,151 28,561,3812018‐2019 13,465,203 16,140,562 29,605,7652019‐2020 15,386,782 15,295,196 30,681,9782020‐2025 86,843,228 82,594,745 169,437,9732025‐2030 123,144,230 79,919,023 203,063,2532030‐2035 100,945,633 51,707,496 152,653,1292035‐2040 48,527,128 6,210,917 54,738,045

422,100,057$ 302,991,997$ 725,092,054$

B. ConstructionLoan

In February 2003, the Redevelopment Agency of the City of Pittsburg made an interest‐free loan of$6,178,936totheDistrict.TheloanistobeusedfortheconstructionofanelementaryschoolwithintheCityofPittsburg.BeginningJune1,2005,theDistrictpays24%ofallimpactfeescollectedbytheDistrictintheCityofPittsburgafterJanuary1,2005.TheDistrictwillcontinuetomakepaymentsequivalentto24%ofimpactfeescollectedintheCityeverysixmonthsonJune1standJanuary1stuntilJune1,2040,oruntiltheloanispaidoff,whicheveroccursfirst.ThebalanceatJune30,2015,is$4,545,225.

36


NOTE7–GENERALLONG‐TERMDEBT(continued)C. CapitalLeases

TheDistrictleasesschoolbuseshavingavalueof$2,393,976underagreementswhichprovidefortitletopassuponexpirationoftheleaseperiod.Futureyearlypaymentsoncapitalizedleaseobligationsareasfollows:

FiscalYear Payment2015‐2016 351,731$2016‐2017 351,7312017‐2018 252,1502018‐2019 152,5682019‐2020 152,568

Totalpayments 1,260,748

LessamountrepresentingInterest (70,467)

Total 1,190,281$

TheDistrictwillreceivenosubleaserentalrevenuesnorpayanycontingentrentalsfortheequipment,classroomorbuses.

D. Non‐ObligatoryDebt

Non‐obligatorydebt relates todebt issuancesby theCommunityFacilityDistricts,asauthorizedby theMello‐RoosCommunityFacilitiesActof1982asamended,andtheMark‐RoosLocalBondPoolingActof1985, and are payable from special taxes levied on propertywithin the Community FacilitiesDistrictsaccordingtoamethodologyapprovedbythevoterswithintheDistrict. NeitherthefaithandcreditnortaxingpoweroftheDistrictispledgedtothepaymentofthebonds.Reserveshavebeenestablishedfromthebondproceedstomeetdelinquenciesshouldtheyoccur.Ifdelinquenciesoccurbeyondtheamountsheld inthosereserves, theDistricthasnodutytopaythedelinquencyoutofanyavailablefundsoftheDistrict.TheDistrictactssolelyasanagentforthosepayingtaxesleviedandthebondholders,andmayinitiate foreclosureproceedings. Special assessmentdebtof$25,890,000asof June30,2015,doesnotrepresentdebtoftheDistrictand,assuch,doesnotappearinthefinancialstatements.

37

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE8–JOINTVENTURESTheMountDiabloUnifiedSchoolDistrictparticipatesinjointventuresunderjointpowersagreementswiththeCSACExcessInsuranceAuthority(CSAC‐EIA),theSchools'Self‐InsuranceofContraCostaCounty(SSICCC),and the SchoolProject forUtilityRateReduction (SPURR). The relationshipsbetween theDistrict and theJPAsaresuchthattheJPAsarenotacomponentunitoftheDistrictforfinancialreportingpurposes.

The JPAsprovidepropertyand liability insurancecoverageaswellashealthandwelfarebenefitscoverage.TheJPAsaregovernedbyaboardconsistingofarepresentativefromeachmemberdistrict. ThegoverningboardcontrolstheoperationsofitsJPAsindependentofanyinfluencebythememberdistrictsbeyondtheirrepresentationonthegoverningboard.EachmemberdistrictpaysapremiumcommensuratewiththelevelofcoveragerequestedandsharessurplusesanddeficitsproportionatelytoitsparticipationintheJPAs.CondensedauditedfinancialinformationisavailablebycontactingtheJPAsdirectly.NOTE9–COMMITMENTSANDCONTINGENCIESA. StateandFederalAllowances,AwardsandGrants

TheDistricthasreceivedstateandfederalfundsforspecificpurposesthataresubjecttoreviewandauditbythegrantoragencies.Althoughsuchauditscouldgenerateexpendituredisallowancesundertermsofthegrants,itisbelievedthatanyrequiredreimbursementwillnotbematerial.

B. ConstructionCommitmentsAs of June 30, 2015, the District had commitmentswith respect to unfinished capital projects of $6.9millionbepaidfromacombinationofStateandlocalfunds.

C. Litigation

TheDistrictisinvolvedincertainotherlegalmattersthataroseoutofthenormalcourseofbusiness.TheDistrict has not accrued a liability for any potential litigation against it because it does not meet thecriteriatobeconsideredaliabilityatJune30,2015.

NOTE10–RISKMANAGEMENTTheDistrictisself‐insuredforpropertyandliabilityclaimsupto$100,000perliabilityclaim.Liabilityclaimsin excess of $100,000 and up to $1,000,000 are covered by a commercial insurance policy. The Districtliabilityclaimsinexcessof$1,000,000arecoveredbyCSAC‐EIA. Propertyclaimsinexcessof$100,000arecoveredby a commercial insurancepolicy up to $149,000,000. All activity for theDistrict's self‐insuranceaccountisincludedintheGeneralfund.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE11–PENSIONPLANSQualified employees are covered under multiple‐employer defined benefit pension plans maintained byagencies of the State of California. Certificated employees are members of the California State Teachers’Retirement System (CalSTRS), and classified employees are members of California Public Employees’RetirementSystem(CalPERS).A. GeneralInformationaboutthePensionPlans

PlanDescriptionsThe District contributes to the California State Teachers’ Retirement System (CalSTRS), a cost‐sharingmultiple‐employer public employee retirement system defined benefit pension plan administered byCalSTRS. Benefit provisions under the Plan are established by State statute and District resolution.CalSTRS issues publicly available reports that include a full description of the pension plan regardingbenefitprovisions,assumptions,andmembershipinformationthatcanbefoundontheCalSTRSwebsite.The District also contributes to the School Employer Pool under the California Public Employees’Retirement System (CalPERS), a cost‐sharing multiple‐employer public employee retirement systemdefinedbenefitpensionplanadministeredbyCalPERS.BenefitprovisionsunderthePlanareestablishedby State statute and District resolution. CalPERS issues publicly available reports that include a fulldescriptionofthepensionplanregardingbenefitprovisions,assumptions,andmembershipinformationthatcanbefoundontheCalPERSwebsite.BenefitsProvidedCalSTRS provides retirement, disability, and death benefits. Retirement benefits are determined as 2percentoffinalcompensationforeachyearofcreditedserviceatage60formembersunderCalSTRS2%at60,orage62formembersunderCalSTRS2%at62,increasingtoamaximumof2.4percentatage63formembers under CalSTRS 2% at 60, or age 65 formembers underCalSTRS 2% at 62. The normalretirement eligibility requirements are age 60 for members under CalSTRS 2% at 60, or age 62 formembersunderCalSTRS2%at62,withaminimumof fiveyearsofservicecreditedunder theDefinedBenefitProgram,whichcanincludeservicepurchasedfromteachinginanout‐of‐stateorforeignpublicschool.Employeesareeligibleforservice‐relateddisabilitybenefitsafterfiveyearsofservice,unlessthememberisdisabledduetoanunlawfulactofbodilyinjurycommittedbyanotherpersonwhileworkinginCalSTRScoveredemployment,inwhichcasetheminimumisoneyear.Disabilitybenefitsareequaltofiftypercent of final compensation regardless of age and service credit. Designated recipients of CalSTRSretiredmembersreceivea$6,163lump‐sumdeathpayment. Thereisa2percentsimpleincreaseeachSeptember1followingthefirstanniversaryofthedateonwhichthemonthlybenefitbegantoaccrue.Theannual 2 percent increase is applied to all continuing benefits other thanDefined Benefit Supplementannuities.However,ifthememberretireswithaReducedBenefitElection,theincreasedoesnotbegintoaccrueuntilthememberreachesage60andisnotpayableuntilthememberreceivesthefullbenefit.Thisincreaseisalsoknownastheimprovementfactor.CalPERSalsoprovidesretirement,disability,anddeathbenefits.Retirementbenefitsaredeterminedas1.1percentoffinalcompensationforeachyearofcreditedserviceatage50formembersunder2%at55,or1.0percentatage52formembersunder2%at62,increasingtoamaximumof2.5percentatage63formembersunder2%at55,orage67formembersunder2%at62.Tobeeligibleforserviceretirement,membersmustbeatleastage50andhaveaminimumoffiveyearsofCalPERS‐creditedservice.Membersjoiningonorafter January1,2013mustbeat leastage52. Disabilityretirementhasnominimumagerequirementandthedisabilitydoesnothavetobejobrelated.However,membersmusthaveaminimumoffiveyearsofCalPERSservicecredit.

39

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE11–PENSIONPLANS(continued)A. GeneralInformationaboutthePensionPlans(continued)

BenefitsProvided(continued)Pre‐retirement death benefits range from a simple return of member contributions plus interest to amonthlyallowanceequaltohalfofwhatthememberwouldhavereceivedatretirementpaidtoaspouseor domestic partner. To be eligible for any type ofmonthly pre‐retirement death benefit, a spouse ordomestic partner must have been either married to the member or legally registered before theoccurrenceoftheinjuryortheonsetoftheillnessthatresultedindeath,orforatleastoneyearpriortodeath.Cost‐of‐livingadjustmentsareprovidedbylawandarebasedontheConsumerPriceIndexforallUnited States cities. Cost‐of‐living adjustments are paid the second calendar year of the member’sretirementontheMay1checkandtheneveryyearthereafter.Thestandardcost‐of‐livingadjustmentisamaximumof2percentperyear.ContributionsActiveCalSTRSplanmemberswererequiredtocontribute8.15%oftheirsalaryin2014‐15.Therequiredemployer contribution rate for fiscal year 2014‐15 was 8.88% of annual payroll. The contributionrequirementsof theplanmembersareestablishedbyState statute. ActiveCalPERSplanmembersarerequired to contribute 7.0% of their salary and the District is required to contribute an actuariallydeterminedrate.Theactuariallydeterminedrateistheestimatedamountnecessarytofinancethecostsof benefits earned by employees during the year, with an additional amount to finance any unfundedaccrued liability. The required employer contribution for fiscal year 2014‐15 was 11.771%. ThecontributionrequirementsoftheplanmembersareestablishedbyStatestatute.ForthefiscalyearendedJune30,2015,thecontributionsrecognizedaspartofpensionexpenseforeachPlanwereasfollows:

CalSTRS CalPERSEmployercontributions 18,725,190$ 5,327,217$Employeecontributionspaidbyemployer ‐$ ‐$

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related toPensionsAsof June30, 2015, theDistrict reportednetpension liabilities for itsproportionate sharesof thenetpensionliabilityofeachPlanasfollows:

ProportionateShareofNetPensionLiability

CalSTRS 161,286,120$CalPERS 45,171,338

TotalNetPensionLiability 206,457,458$

40

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE11–PENSIONPLANS(continued)B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to

Pensions(continued)

TheDistrict’snetpensionliabilityforeachPlanismeasuredastheproportionateshareofthenetpensionliability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the totalpensionliabilityforeachPlanusedtocalculatethenetpensionliabilitywasdeterminedbyanactuarialvaluationasof June30,2013, rolled forward to June30,2014,using standardupdateprocedures.TheDistrict’s proportion of the net pension liability was based on a projection of the District’s long‐termshare of contributions to the pension plans relative to the projected contributions of all participatingemployers,actuariallydetermined.TheDistrict’sproportionateshareofthenetpensionliabilityforeachPlanasofJune30,2013and2014,wasasfollows:

CalSTRS* CalPERSProportion‐June30,2013 0.2760% 0.4036%Proportion‐June30,2014 0.2760% 0.3979%

Change‐Increase(Decrease) 0.0000% ‐0.0057%

*TheDistrict'sproportionatesharepercentagewasnotseparatelydeterminedforJune30,2013,sotheJune30,2014,percentagewasusedtocalculatethebeginningamounts.

For theyear ended June30,2015, theDistrict recognizedpensionexpenseof$17,939,009.At June30,2015, theDistrict reporteddeferredoutflowsofresourcesanddeferred inflowsofresourcesrelated topensionsfromthefollowingsources:

DeferredOutflows DeferredInflowsofResources ofResources

Pensioncontributionssubsequenttomeasurementdate 16,820,636$ ‐$Adjustmentduetodifferencesinproportions ‐ (819,778)Netdifferencesbetweenprojectedandactualearningsonplaninvestments ‐ (55,237,778)

16,820,636$ (56,057,556)$

41


Pensions(continued)The total amount of $16,820,636 reported as deferred outflows of resources related to contributionssubsequenttothemeasurementdatewillberecognizedasareductionofthenetpensionliabilityintheyear ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferredinflowsofresourcesrelatedtopensionswillberecognizedaspensionexpenseasfollows:

YearEndedJune30, Amount2016 (12,028,569)$2017 (12,028,569)2018 (12,028,569)2019 ‐2020 ‐

Thereafter ‐ ActuarialAssumptions – The total pension liabilities in the June 30, 2013, actuarial valuations weredeterminedusingthefollowingactuarialassumptions:

CalSTRS CalPERSValuationDate June30,2013 June30,2013MeasurementDate June30,2014 June30,2014ActuarialCostMethod Entryagenormal EntryagenormalActuarialAssumptions:DiscountRate 7.60% 7.50%Inflation 3.00% 2.75%WageGrowth 3.75% 3.00%Post‐retirementBenefitIncrease 2.00% ‐InvestmentRateofReturn 7.60% 7.50%

CalSTRS uses custommortality tables to best fit the patterns ofmortality among itsmembers. ThesecustomtablesarebasedonRP2000seriestablesadjustedtofitCalSTRSexperience.RP2000seriestablesareanindustrystandardsetofmortalityratespublishedbytheSocietyofActuaries.SeeCalSTRSJuly1,2006‐June30,2010ExperienceAnalysisformoreinformation. Theunderlyingmortalityassumptionsand all other actuarial assumptions used in the CalPERS June 30, 2013, valuation were based on theresultsofa January2014actuarialexperiencestudyfortheperiod1997to2011.FurtherdetailsoftheExperienceStudycanfoundontheCalPERSwebsite.DiscountRate–forCalSTRSThediscount rateused tomeasure the totalpension liabilitywas7.60percent. Theprojectionof cashflowsusedtodeterminethediscountrateassumedthatcontributionsfromplanmembersandemployerswillbemadeatstatutorycontributionratesinaccordancewiththerateincreaseperAssemblyBill1469.Projected inflows from investment earnings were calculated using the long‐term assumed investmentrate of return (7.60 percent) and assuming that contributions, benefit payments, and administrativeexpenseoccurmidyear.Basedonthoseassumptions,theSTRP'sfiduciarynetpositionwasprojectedtobeavailabletomakeallprojectedfuturebenefitpaymentstocurrentplanmembers.

42


Pensions(continued)DiscountRate–forCalSTRS(continued)Therefore, the long‐term assumed investment rate of return was applied to all periods of projectedbenefitpaymentstodeterminethetotalpensionliability.DiscountRate–forCalPERSThe discount rate used to measure the total pension liability was 7.50% for CalPERS. To determinewhether the municipal bond rate should be used in the calculation of a discount rate for each plan,CalPERSstresstestedplansthatwouldmostlikelyresultinadiscountratethatwouldbedifferentfromtheactuariallyassumeddiscountrate. Basedon the testing,noneof the testedplansrunoutofassets.Therefore, the current 7.50 percent discount rate is adequate and the use of themunicipal bond ratecalculationisnotnecessary. Thelongtermexpecteddiscountrateof7.50percentwillbeappliedtoallplansinthePublicEmployeesRetirementFund(PERF).ThestresstestresultsarepresentedinadetailedreportthatcanbeobtainedfromtheCalPERSwebsite.According toParagraph30ofStatement68, the long‐termdiscountrateshouldbedeterminedwithoutreductionforpensionplanadministrativeexpense.The7.50percentinvestmentreturnassumptionusedinthisaccountingvaluationisnetofadministrativeexpenses.Administrativeexpensesareassumedtobe15basispoints.Aninvestmentreturnexcludingadministrativeexpenseswouldhavebeen7.65percent.Using this lowerdiscount ratehas resulted ina slightlyhigherTotalPensionLiabilityandNetPensionLiability.CalPERScheckedthematerialitythresholdforthedifferenceincalculationanddidnotfindittobeamaterialdifference. CalPERSisscheduledtoreviewallactuarialassumptionsaspartofitsregularAssetLiabilityManagement(ALM)reviewcyclethatisscheduledtobecompletedinFebruary2018.Anychanges to the discount rate will require Board action and proper stakeholder outreach. For thesereasons,CalPERSexpects tocontinueusingadiscountratenetofadministrativeexpenses forGASB67and 68 calculations through at least the 2017‐18 fiscal year. CalPERS will continue to check thematerialityofthedifferenceincalculationuntilsuchtimeaswehavechangedourmethodology.The long‐term expected rate of return on pension plan investmentswas determined using a building‐blockmethodinwhichbest‐estimaterangesofexpectedfuturerealratesofreturn(expectedreturns,netofpensionplan investment expenseand inflation)aredeveloped foreachmajorasset class. Thebest‐estimate ranges were developed using capital market assumptions from CalSTRS general investmentconsultant (Pension Consulting Alliance‐PCA) as an input to the process. Based on the model fromCalSTRS consulting actuary's (Milliman) investmentpractice, a best estimate rangewasdeterminedbyassumingtheportfolio isre‐balancedannuallyandthatannualreturnsare lognormallydistributedandindependent from year to year to develop expected percentiles for the long‐term distribution ofannualized returns. The assumed asset allocation by PCA is based on board policy for target assetallocation in effect on February 2, 2012, the date the current experience study was approved by theboard.In determining the long‐term expected rate of return, CalPERS took into account both short‐term andlong‐termmarketreturnexpectationsaswellastheexpectedpensionfundcashflows. Usinghistoricalreturnsofall the funds’ asset classes, expectedcompoundreturnswerecalculatedover theshort‐term(first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expectednominalreturnsforbothshort‐termandlong‐term,thepresentvalueofbenefitswascalculatedforeachfund.

43


Pensions(continued)DiscountRate–forCalPERS(continued)Theexpectedrateofreturnwassetbycalculatingthesingleequivalentexpectedreturnthatarrivedatthesamepresentvalueofbenefits forcashflowsastheonecalculatedusingbothshort‐termandlong‐termreturns.Theexpectedrateofreturnwasthensetequivalenttothesingleequivalentratecalculatedaboveandroundeddowntothenearestonequarterofonepercent.Thetablebelowreflectsthelong‐termexpectedrealrateofreturnbyassetclass.Therateofreturnwascalculated using the capital market assumptions applied to determine the discount rate and assetallocation.Theseratesofreturnarenetofadministrativeexpenses.

AssetClass CalSTRS CalPERS CalSTRS CalPERSGlobalEquity 47% 47% 4.5% 5.7%GlobalFixedIncome N/A 19% N/A 2.4%InflationSensitive 5% 6% 3.2% 3.4%PrivateEquity 12% 12% 6.2% 7.0%RealEstate 15% 11% 4.4% 5.1%InfrastructureandForestland N/A 3% N/A 5.1%FixedIncome 20% N/A 0.2% N/ALiquidity 1% 2% 0.0% ‐1.1%

100% 100%

Long‐TermExpectedTargetAllocation RateofReturn

SensitivityoftheProportionateShareoftheNetPensionLiabilitytoChangesintheDiscountRateThe following presents the District’s proportionate share of the net pension liability for each Plan,calculatedusingthediscountrateforeachPlan,aswellaswhattheDistrict’sproportionateshareofthenetpensionliabilitywouldbeifitwerecalculatedusingadiscountratethatis1‐percentagepointloweror1‐percentagepointhigherthanthecurrentrate:

CalSTRS CalPERS1%Decrease 6.60% 6.50%NetPensionLiability 251,402,880$ 79,240,839$

CurrentDiscountRate 7.60% 7.50%NetPensionLiability 161,286,120$ 45,171,338$

1%Increase 8.60% 8.50%NetPensionLiability 86,145,120$ 16,702,836$

PensionPlanFiduciaryNetPositionDetailedinformationabouteachpensionplan’sfiduciarynetpositionisavailableintheseparatelyissuedCalSTRSandCalPERSfinancialreports.

44

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestoFinancialStatementsJune30,2015NOTE11–PENSIONPLANS(continued)

C. PayabletothePensionPlans

AtJune30,2015,theDistrictreportedapayableof$84,946and$16,837fortheoutstandingamountofcontributionstotheCalSTRSandCalPERSpensionplans,respectively,requiredforthefiscalyearendedJune30,2015.

NOTE12–OTHERPOSTEMPLOYMENTBENEFITSMountDiabloUnifiedSchoolDistrictadministersadefinedbenefitpostemploymentplan,whereplanassetsmaybeusedonlyforthepaymentofbenefitstothemembersofthatplan.TheplanassetsareaccountedforintheRetireeBenefitFund.TheDistrictimplementedGovernmentalAccountingStandardsBoardStatement#45,FinancialReportingforPostemploymentBenefitPlansOtherThanPensionPlans,in2007‐08.PlanDescriptionsandContributionInformationMembershipintheplanconsistedofthefollowing:

Retireesandbeneficiariesreceivingbenefits 1,219Activeplanmembers 3,005Total 4,224

AsofJuly1,2014,actuarialvaluationdate The District provides postemployment health care benefits, in accordance with District employmentcontracts, to all employees who retire from the District and meet the age and service requirements foreligibility.TheDistrictofferssubsidizedhealthinsuranceuntilage65.TheDistrict’sfundingpolicyisbasedontheprojectedpay‐as‐you‐gofinancingrequirements,withadditionalamounts to prefundbenefits asdetermined annuallyby the governingboard. For fiscal year2014‐15, theDistrictcontributed$4,813,524.AnnualOPEBCostandNetOPEBObligationTheDistrict’sannualOPEBcost iscalculatedbasedon theAnnualRequiredContribution(ARC),anamountactuariallydeterminedinaccordancewiththeparametersofGASBStatement45.TheARCrepresentsalevelof funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize anyunfundedactuarialliabilities(orfundingexcess)overaperiodnottoexceedthirtyyears.ThefollowingtableshowsthecomponentsoftheDistrict’sannualOPEBcostfortheyear,theamountactuallycontributedtotheplan,andchangesintheDistrict’snetOPEBobligation:

Annualrequiredcontribution(ARC) 11,433,256$InterestonnetOPEBobligation 1,405,098AdjustmenttoARC (1,597,480)AnnualOPEBcost 11,240,874Contributionsmade (4,813,524)Increase(decrease)innetOPEBobligation 6,427,350NetOPEBobligation‐July1,2014 31,224,393NetOPEBobligation‐June30,2015 37,651,743$

45


NOTE12–OTHERPOSTEMPLOYMENTBENEFITS(continued)AnnualOPEBCostandNetOPEBObligation(continued)TheDistrict'sannualOPEBcost,thepercentageofannualOPEBcostcontributedtotheplan,andthenetOPEBobligationfor2014‐15andtheprecedingtwoyearsareasfollows:

AnnualYearEnded OPEB Percentage NetOPEBJune30, Cost Contributed Obligation2013 10,600,315$ 52% 25,342,946$2014 10,947,325 46% 31,224,3932015 11,240,874 43% 37,651,743

ActuarialMethodsandAssumptionsProjections of benefits for financial reporting purposes are based on the substantive plan (the plan asunderstoodbytheemployerandplanmembers)andincludethetypesofbenefitsprovidedatthetimeofeachvaluationand thehistoricalpatternofsharingofbenefitcostsbetweentheemployerandplanmembers tothatpoint.Theactuarialmethodsandassumptionsusedincludetechniquesthataredesignatedtoreducetheeffectsofshort‐termvolatilityinactuarialaccruedliabilitiesandtheactuarialvalueofassets,consistentwiththelong‐termperspectiveofthecalculations.

Additionalinformationasofthelatestactuarialvaluationfollows:

ValuationDate 7/1/2014

ActuarialCostMethod EntryAgeNormal

AmortizationMethod Level‐percentageofpayroll

RemainingAmortizationPeriod 24years

ActuarialAssumptions:Discountrate 4.5%

Healthcaretrendrate 5.0%‐7.0%

Inflationrate 2.75%

NOTE13–SUBSEQUENTEVENTOnJuly15,2015,theDistrictissued$38,500,000in2010Election,2015SeriesF,GeneralObligationBonds.The bonds are being issued to finance the construction, acquisition, furnishing, and equipping of districtfacilitiesandtopaycertaincostsofissuanceofthebonds.

RequiredSupplementaryInformation

Seeaccompanyingnotestorequiredsupplementaryinformation. 46

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTBudgetaryComparisonSchedule–GeneralFundFortheFiscalYearEndedJune30,2015

ActualVariancewithFinalBudget‐

Original Final (BudgetaryBasis) Pos(Neg)Revenues

LCFFSources 219,682,540$ 222,626,709$ 222,626,709$ ‐$FederalSources 18,478,654 26,583,627 20,477,079 (6,106,548)OtherStateSources 32,214,242 37,149,721 37,027,169 (122,552)OtherLocalSources 9,019,297 14,796,541 14,833,542 37,001

TotalRevenues 279,394,733 301,156,598 294,964,499 (6,192,099)

ExpendituresCurrent:CertificatedSalaries 134,016,281 137,944,405 133,833,408 4,110,997ClassifiedSalaries 40,419,301 44,952,300 44,044,112 908,188EmployeeBenefits 63,607,198 59,848,241 54,340,309 5,507,932BooksandSupplies 15,070,287 44,533,288 13,167,352 31,365,936ServicesandOtherOperatingExpenditures 34,619,797 39,596,327 36,155,758 3,440,569TransfersofIndirectCosts (403,104) (408,605) (582,745) 174,140

CapitalOutlay 759,767 2,173,330 1,612,065 561,265Intergovernmental 566,765 3,355,710 3,354,708 1,002

TotalExpenditures 288,656,292 331,994,996 285,924,967 46,070,029

Excess(Deficiency)ofRevenuesOver(Under)Expenditures (9,261,559) (30,838,398) 9,039,532 39,877,930

OtherFinancingSourcesandUsesInterfundTransfersOut (3,355,047) (3,276,196) (3,276,196) ‐

TotalOtherFinancingSourcesandUses (3,355,047) (3,276,196) (3,276,196) ‐

Excess(Deficiency)ofRevenuesandOtherFinancingSourcesOver(Under)ExpendituresandOtherFinancingUses (12,616,606) (34,114,594) 5,763,336 39,877,930

FundBalances,July1,2014 53,483,722 65,758,065 65,758,065 ‐

FundBalances,June30,2015 40,867,116$ 31,643,471$ 71,521,401$ 39,877,930$

On‐behalfpaymentsof$6,922,218havebeenincludedintheStatementofRevenues,ExpendituresandChangesinFundBalancebutarenotincludedintheactualamountsabove.

BudgetedAmounts


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofFundingProgressFortheFiscalYearEndedJune30,2015

Actuarial UAALasaActuarial Accrued Unfunded PercentageofValuation Valueof Liability AAL Funded Covered CoveredDate Assets (AAL) (UAAL) Ratio Payroll Payroll

5/1/2008 ‐$ 71,018,299$ 71,018,299$ 0% 191,822,548$ 37%7/1/2012 ‐$ 95,744,443 95,744,443 0% 174,900,000 55%7/1/2014 ‐$ 101,535,198 101,535,198 0% 171,978,831 59%


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofProportionateShareoftheNetPensionLiabilityFortheFiscalYearEndedJune30,2015

2014

District'sproportionofthenetpensionliability(asset):

CalSTRS 0.2760%CalPERS 0.3979%

District'sproportionateshareofthenetpensionliability(asset):

CalSTRS 161,286,120$CalPERS 45,171,338$

District'scovered‐employeepayroll:CalSTRS 123,886,776$CalPERS 41,430,353$

District'sproportionateshareofthenetpensionliability(asset)asapercentageofitscovered‐employeepayroll:


Planfiduciarynetpositionasapercentageofthetotalpensionliability:


* Thisscheduleisrequiredtoshowinformationfortenyears;however,untilafulltenyeartrendiscompiled,informationispresentedforthoseyearsforwhichinformationisavailable.

LastTenFiscalYears*


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofContributionsFortheFiscalYearEndedJune30,2015

2014

Actuariallydeterminedcontribution:CalSTRS 10,220,659$CalPERS 4,740,461$

Contributionsinrelationtotheactuariallydeterminedcontribution:

CalSTRS 10,220,659$CalPERS 4,740,461$

Contributiondeficiency(excess):CalSTRS ‐$CalPERS ‐$

District'scovered‐employeepayroll:CalSTRS 123,886,776$CalPERS 41,430,353$

Contributionsasapercentageofcovered‐employeepayroll:


* Thisscheduleisrequiredtoshowinformationfortenyears;however,untilafulltenyeartrendiscompiled,informationispresentedforthoseyearsforwhichinformationisavailable.

LastTenFiscalYears*

50

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotestotheRequiredSupplementaryInformationFortheFiscalYearEndedJune30,2015

NOTE1–PURPOSEOFSCHEDULESBudgetaryComparisonSchedulesTheseschedulesarerequiredbyGASBStatementNo.34asrequiredsupplementaryinformation(RSI)fortheGeneral Fund and for each major special revenue fund that has a legally adopted annual budget. Thebudgetarycomparisonschedulespresentboth(a)theoriginaland(b)thefinalappropriatedbudgetsforthereportingperiodaswellas(c)actualinflows,outflows,andbalances,statedontheDistrict’sbudgetarybasis.A separate column to report the variance between the final budget and actual amounts is also presented,althoughnotrequired.ScheduleofFundingProgressThis schedule is required by GASB Statement No. 45 for all sole and agent employers that provide otherpostemploymentbenefits(OPEB).Theschedulepresents,forthemostrecentactuarialvaluationandthetwoprecedingvaluations, informationabout the fundingprogressof theplan, including, foreachvaluation, theactuarial valuation date, the actuarial value of assets, the actuarial accrued liability, the total unfundedactuarial liability (or funding excess), the actuarial valueof assets as apercentageof the actuarial accruedliability(fundedratio), theannualcoveredpayroll,andtheratioof thetotalunfundedactuarial liability(orfundingexcess)toannualcoveredpayroll.ScheduleofProportionateShareoftheNetPensionLiabilityThis schedule is required by GASB Statement No. 68 and is required for all employers in a cost‐sharingpensionplan.Theschedulereportsthefollowinginformation:

Theproportion(percentage)ofthecollectivenetpensionliability(similartothenotedisclosure) Theproportionateshare(amount)ofthecollectivenetpensionliability Theemployer'scovered‐employeepayroll The proportionate share (amount) of the collective net pension liability as a percentage of the

employer'scovered‐employeepayroll Thepensionplan'sfiduciarynetpositionasapercentageofthetotalpensionliability

ScheduleofContributionsThis schedule is required by GASB Statement No. 68 and is required for all employers in a cost‐sharingpensionplan.Theschedulereportsthefollowinginformation:

If an employer's contributions to the plan are actuarially determined or based on statutory orcontractual requirements: the employer's actuarially determined contribution to the pension plan(or, if applicable, its statutorily or contractually required contribution), the employer's actualcontributions, the difference between the actual and actuarially determined contributions (orstatutorily or contractually required), and a ratio of the actual contributions divided by covered‐employeepayroll.

NOTE2–EXCESSOFEXPENDITURESOVERAPPROPRIATIONSAtJune30,2015,theDistrictdidnotincuranyexcessofexpendituresoverappropriationsintheindividualmajorfundpresentedintheBudgetaryComparisonSchedule.

SupplementaryInformation

51

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTLocalEducationalAgencyOrganizationStructureJune30,2015TheMountDiabloUnifiedSchoolDistrictwasestablishedon July1,1949. TheDistrict is located inContraCostaCounty and serves students in the citiesofConcord,PleasantHill,WalnutCreek, andportionsof thecities of Clayton,Martinez, Pittsburg, and other surrounding communities. Therewere no changes in theboundaries of theDistrict during the current year. TheDistrict currently operates 28 elementary schools,nine middle schools, five high schools, two special education schools, one continuation high school, fivenecessarysmallhighschools,oneindependentstudyschool,andtwoadulteducationcenters.

GOVERNINGBOARD

Member Office TermExpires

CherylHansen President December2018

DebraMason Vice‐President December2018

BrianLawrence Member December2016

LindaMayo Member December2018

BarbaraOaks Member December2016

DISTRICTADMINISTRATORS

Dr.NellieMeyer,Ed.D.,Superintendent

Mary‐LouiseNewling,

AssistantSuperintendent,ElementarySchools

JonathanEagan,AssistantSuperintendent,MiddleSchools

ChristopherHolleran,

AssistantSuperintendent,HighSchools

JenniferSachs,ExecutiveDirectorofInstructionalSupport

JeffMcDaniel,

ExecutiveDirectorofOperations

LarrySchoenke,InterimGeneralCounsel

NanceJuner,

Director,FiscalServices

52

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAverageDailyAttendanceFortheFiscalYearEndedJune30,2015

SecondPeriod AnnualReport Report

CertificateNo. CertificateNo.(072EBDEA) (38FD3051)

RegularADA&ExtendedYear:TransitionalKindergartenthroughThird 10,178.58 10,160.55FourththroughSixth 7,311.81 7,301.73SevenththroughEighth 4,816.20 4,804.41NinththroughTwelfth 7,914.54 7,812.64

TotalRegularADA 30,221.13 30,079.33

SpecialEducation,Nonpublic,NonsectarianSchools:TransitionalKindergartenthroughThird 5.61 5.33FourththroughSixth 14.77 15.98SevenththroughEighth 32.22 33.02NinththroughTwelfth 88.92 89.08

TotalSpecialEducation,Nonpublic,NonsectarianSchools 141.52 143.41

CommunityDaySchool:SevenththroughEighth 0.53 1.25NinththroughTwelfth 9.88 10.69TotalCommunityDayADA 10.41 11.94

TotalADA 30,373.06 30,234.68

Seeaccompanyingnotetosupplementaryinformation. 53

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofInstructionalTimeFortheFiscalYearEndedJune30,2015

2014‐15 NumberofDaysPreviously Actual Traditional

GradeLevel Required Reduced* Minutes Calendar Status

Kindergarten 36,000 35,000 36,000 180 CompliedGrade1 50,400 49,000 51,871 180 CompliedGrade2 50,400 49,000 51,871 180 CompliedGrade3 50,400 49,000 51,871 180 CompliedGrade4 54,000 52,500 55,800 180 CompliedGrade5 54,000 52,500 55,800 180 CompliedGrade6 54,000 52,500 58,260 180 CompliedGrade7 54,000 52,500 58,260 180 CompliedGrade8 54,000 52,500 58,260 180 CompliedGrade9 64,800 63,000 65,284 180 CompliedGrade10 64,800 63,000 65,284 180 CompliedGrade11 64,800 63,000 65,284 180 CompliedGrade12 64,800 63,000 65,284 180 Complied

*AmountsreducedaspermittedbyEducationCodeSection46201.2(a).

1986‐87Minutes


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofFinancialTrendsandAnalysisFortheFiscalYearEndedJune30,2015

(Budget)GeneralFund 20163 20151 2014 2013

Revenuesandotherfinancingsources 317,429,838$ 294,964,499$ 283,613,268$ 278,316,060$

Expenditures 305,218,978 285,924,967 267,651,694 274,878,260Otherusesandtransfersout 3,184,396 3,276,196 3,789,964 3,637,547

Totaloutgo 308,403,374 289,201,163 271,441,658 278,515,807

Changeinfundbalance(deficit) 9,026,464 5,763,336 12,171,610 (199,747)

Endingfundbalance 80,547,865$ 71,521,401$ 65,758,065$ 53,586,455$

Availablereserves2 47,341,028$ 39,495,171$ 43,731,630$ 35,958,103$

Availablereservesasapercentageoftotaloutgo 15.4% 13.7% 16.1% 12.9%

Totallong‐termdebt4 705,907,131$ 719,583,733$ 776,939,325$ 527,211,636$

AveragedailyattendanceatP‐2 30,626 30,373 30,460 30,506

TheGeneralFundbalancehasincreasedby$17,934,946overthepasttwoyears.Thefiscalyear2015‐16adoptedbudgetprojectsanincreaseof$9,026,464.Foradistrictofthissize,thestaterecommendsavailablereservesofatleast2%oftotalgeneralfundexpenditures,transfersout,andotheruses(totaloutgo).

TheDistricthasincurredanoperatingsurplusintwoofthepastthreeyears,andanticipatesincurringanoperatingsurplusduringthe2015‐16fiscalyear.Long‐termdebthasincreasedby$192,372,097overthepasttwoyears.

Averagedailyattendancehasdecreasedby133overthepasttwoyears.Anincreaseof253ADAisprojectedduringfiscalyear2015‐16.

1On‐behalfpaymentsof$6,922,218havebeenincludedintheStatementofRevenues,ExpendituresandChangesinFundBalancebutarenotincludedintheactualamountsabove.

2AvailablereservesconsistofallunassignedfundbalancesintheGeneralFund.

3RevisedFinalBudgetSeptember,2015.

4Asrestated.


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofCharterSchoolsFortheFiscalYearEndedJune30,2015

InclusioninFinancialCharterSchool Statements

EaglePeakMontessori Notincluded


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTReconciliationofAnnualFinancialandBudgetReportwithAuditedFinancialStatementsFortheFiscalYearEndedJune30,2015

TherewerenodifferencesbetweentheAnnualFinancialandBudgetReportandtheAuditedFinancialStatementsinanyfunds.


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofExpendituresofFederalAwardsFortheFiscalYearEndedJune30,2015

Pass‐ThroughFederal Entity

FederalGrantor/Pass‐Through CFDA Identifying Cluster FederalGrantor/ProgramorClusterTitle Number Number Expenditures Expenditures

FederalPrograms:U.S.DepartmentofAgriculture:

FarmtoSchoolPlanningGrant 10.575 N/A 12,026$PassedthroughCaliforniaDept.ofEducation(CDE):SchoolBreakfastProgram‐Basic 10.553 13525 69,631$SchoolBreakfastProgram‐EspeciallyNeedy 10.553 13526 1,508,697NationalSchoolLunchProgram 10.555 13523 5,600,877USDADonatedFoods 10.555 N/A 691,853SummerFoodServiceProgramOperations 10.559 13004 171,515TotalChildNutritionCluster 8,042,573

ChildandAdultCareFoodProgram 10.558 13393 839,788CashinLieuofCommodities 10.558 13393 69,747TotalChildandAdultCareFoodProgramCluster 909,535

NSLPEquipmentAssistanceGrants 10.579 14906 99,998TotalU.S.DepartmentofAgriculture 9,064,132

U.S.DepartmentofDefense:J.R.O.T.C. 12.030 N/A 189,102

TotalU.S.DepartmentofDefense 189,102

U.S.DepartmentofLabor:PassedthroughEastbayWorks:WorkforceInvestmentActFromOtherAgencies 17.259 N/A 140,945

TotalU.S.DepartmentofLabor 140,945

U.S.DepartmentofEducation:PassedthroughCaliforniaDept.ofEducation(CDE):AdultEducation:AdultBasicEducationandESL 84.002A 14508 303,771AdultEducation:AdultSecondaryEducation 84.002 13978 161,010AdultEducation:EnglishLiteracyandCivicsEducation 84.002A 14109 132,733TotalAdultEducation‐StateGrantsCluster 597,514

PellGrants 84.063 N/A 200,455NoChildLeftBehind(NCLB):TitleI,PartA,BasicGrantsLow‐IncomeandNeglected 84.010 14329 4,850,232TitleI,PartA,ProgramImprovementLEACorrectiveAction 84.010 14955 33,802TotalTitleI,PartACluster 4,884,034

TitleI,PartG,AdvancedPlacementTestReimbursementProgram 84.330B 14831 17,501TitleI,SchoolImprovementGrantsforQEIASchools 84.377 14971 3,589,681ARRATitleI,SchoolImprovementGrantsforQEIASchools 84.388 15020 714,224TotalSchoolImprovementGrantsCluster 4,303,905TitleII,PartA,ImprovingTeacherQualityLocalGrants 84.367 14341 747,163TitleIII,LimitedEnglishProficiency 84.365 14346 663,851TitleIII,ImmigrantEducation 84.365 15146 30,829TotalEnglishLanguageAcquisitionGrantsCluster 694,680

TitleIV,PartB,21stCCLC‐HighSchoolASSETs 84.287 14349 679CarlD.PerkinsCareerandTechnicalEducation:Secondary,Sec.131 84.048 14894 237,781CarlD.PerkinsCareerandTechnicalEducation:Adult,Section132 84.048 14893 51,480TotalCareerandTechnicalEducation‐BasicGrantstoStatesCluster 289,261

SafeandSupportiveSchoolsProgrammaticIntervention 84.184 15164 207,100IndividualswithDisabilitiesEducationAct(IDEA):BasicLocalAssistanceEntitlement 84.027 13379 5,322,943LocalAssistance,PartB,Sec611,PrivateSchoolISPs 84.027 10115 54,981LocalAssistance,PartB,Sec611,EarlyInterveningServices 84.027 10119 1,384,699PreschoolGrants,PartB,Sec619 84.173 13430 189,265PartB,Sec619,PreschoolGrantsEarlyInterveningServices 84.173 10131 17,604PreschoolLocalEntitlement,PartB,Sec611 84.027A 13682 272,671MentalHealthAllocationPlan,PartB,Sec611 84.027A 14468 581,195PartB,Sec611,PreschoolLocalEntitlementEarlyInterveningServices 84.027 10132 57,245PreschoolStaffDevelopment,PartB,Sec619 84.173A 13431 2,586AlternateDisputeResolution 84.173A 13007 20,428TotalSpecialEducation(IDEA)Cluster 7,903,617StateImprovementGrant,ImprovingSpecialEdSystems 84.323 14913 6,512IDEAEarlyInterventionGrants,PartC 84.181 23761 161,463

TotalU.S.DepartmentofEducation 20,013,884

U.S.DepartmentofHealth&HumanServices:PassedthroughCaliforniaDept.ofEducation(CDE):Medi‐CalBillingOption 93.778 10013 547,460

TotalU.S.DepartmentofHealth&HumanServices 547,460

CorporationforNationalandCommunityService:CalSERVESAfterSchoolProgram 94.006 N/A 49,368

TotalCorporationforNationalandCommunityService 49,368

TotalExpendituresofFederalAwards 30,004,891$


MOUNTDIABLOUNIFIEDSCHOOLDISTRICTCombiningBalanceSheet–Non‐MajorGovernmentalFundsJune30,2015

CapitalProjects TotalAdult Deferred Capital FundforBlended Non‐Major

Education Cafeteria Maintenance Facilities CountySchool Component GovernmentalFund Fund Fund Fund FacilitiesFund Units Funds

ASSETSCash 306,205$ 1,053,988$ ‐$ 4,573,070$ ‐$ 2,501$ 5,935,764$Investments 622,931 710,597 249,754 1,219,799 8,249,911 2,076,436 13,129,428Accountsreceivable 480,256 1,538,564 147 5,077 4,011 1,650 2,029,705Duefromotherfunds 6,354 3,907 ‐ ‐ ‐ ‐ 10,261Inventories ‐ 26,202 ‐ ‐ ‐ ‐ 26,202

TotalAssets 1,415,746$ 3,333,258$ 249,901$ 5,797,946$ 8,253,922$ 2,080,587$ 21,131,360$

LIABILITIESANDFUNDBALANCES

LiabilitiesCashoverdraft ‐$ ‐$ 241,490$ ‐$ 5,894,166$ ‐$ 6,135,656$Accountspayable 101,801 375,350 ‐ 2,991 91,124 23,412 594,678Duetootherfunds 2 ‐ ‐ ‐ ‐ ‐ 2

TotalLiabilities 101,803 375,350 241,490 2,991 5,985,290 23,412 6,730,336

FundBalancesNonspendable ‐ 26,202 ‐ ‐ ‐ ‐ 26,202Restricted 28,172 2,931,706 ‐ 5,794,955 2,268,632 2,057,175 13,080,640Committed 1,285,771 ‐ 8,411 ‐ ‐ ‐ 1,294,182

TotalFundBalances 1,313,943 2,957,908 8,411 5,794,955 2,268,632 2,057,175 14,401,024

TotalLiabilitiesandFundBalances 1,415,746$ 3,333,258$ 249,901$ 5,797,946$ 8,253,922$ 2,080,587$ 21,131,360$

59

MOUNTDIABLOUNIFIEDSCHOOLDISTRICTCombiningStatementofRevenues,Expenditures,andChangesinFundBalances–Non‐MajorGovernmentalFundsFortheFiscalYearEndedJune30,2015

CapitalProjects TotalAdult Deferred Capital FundforBlended Non‐Major

Education Cafeteria Maintenance Facilities CountySchools Component GovernmentalFund Fund Fund Fund FacilitiesFund Units Funds

REVENUESFederalsources 852,967$ 9,064,131$ ‐$ ‐$ ‐$ ‐$ 9,917,098$Otherstatesources 178,268 578,285 ‐ ‐ ‐ ‐ 756,553Otherlocalsources 1,539,513 3,016,692 663 1,696,081 1,746 816,087 7,070,782

TotalRevenues 2,570,748 12,659,108 663 1,696,081 1,746 816,087 17,744,433

EXPENDITURESCurrent:Instruction 3,240,955 ‐ ‐ ‐ ‐ ‐ 3,240,955Instruction‐relatedservices:

Supervisionofinstruction 445,984 ‐ ‐ ‐ ‐ ‐ 445,984Instructionallibrary,mediaandtechnology 100,082 ‐ ‐ ‐ ‐ ‐ 100,082Schoolsiteadministration 1,678,695 ‐ ‐ ‐ ‐ ‐ 1,678,695

PupilSupportServices:Foodservices ‐ 12,870,653 ‐ ‐ ‐ ‐ 12,870,653Allotherpupilservices 17,029 ‐ ‐ ‐ ‐ ‐ 17,029

GeneralAdministrationServices:Othergeneraladministration ‐ ‐ ‐ 44,767 ‐ ‐ 44,767

Plantservices 868,273 ‐ 96,949 ‐ ‐ 899,540 1,864,762Transfersofindirectcosts 156,492 426,253 ‐ ‐ ‐ ‐ 582,745

Capitaloutlay ‐ ‐ 320,307 13,745 431,837 4,654 770,543Debtservice:

Principal ‐ ‐ ‐ 294,935 ‐ ‐ 294,935

TotalExpenditures 6,507,510 13,296,906 417,256 353,447 431,837 904,194 21,911,150

Excess(Deficiency)ofRevenuesOver(Under)Expenditures (3,936,762) (637,798) (416,593) 1,342,634 (430,091) (88,107) (4,166,717)

OTHERFINANCINGSOURCES(USES)Interfundtransfersin 3,276,196 ‐ ‐ ‐ ‐ ‐ 3,276,196

NetChangeinFundBalances (660,566) (637,798) (416,593) 1,342,634 (430,091) (88,107) (890,521)

1,974,509 3,595,706 425,004 4,452,321 2,698,723 2,145,282 15,291,545

FundBalances,June30,2015 1,313,943$ 2,957,908$ 8,411$ 5,794,955$ 2,268,632$ 2,057,175$ 14,401,024$

FundBalances,July1,2014

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTNotetotheSupplementaryInformationJune30,2015NOTE1–PURPOSEOFSCHEDULESScheduleofAverageDailyAttendance(ADA)Averagedailyattendance(ADA) isameasurementof thenumberofpupilsattendingclassesof theDistrict.The purpose of attendance accounting from a fiscal standpoint is to provide the basis on whichapportionmentsofStatefundsaremadetoschooldistricts.Thisscheduleprovidesinformationregardingtheattendanceofstudentsatvariousgradelevelsandindifferentprograms.ScheduleofInstructionalTimeTheDistrict has participated in the Incentives for Longer InstructionalDay and Longer Instructional Year.TheDistricthasnotmetitstargetfunding.ThisschedulepresentsinformationontheamountofinstructionaltimeofferedbytheDistrictandwhethertheDistrictcompliedwiththeprovisionsofEducationCodeSections46200through46206.Districts must maintain their instructional minutes at the 1986‐87 requirement, as reduced by EducationCodesection46201.2(a).ScheduleofFinancialTrendsandAnalysisThisscheduledisclosestheDistrict’s financial trendsbydisplayingpastyears’dataalongwithcurrentyearbudgetinformation.ThesefinancialtrenddisclosuresareusedtoevaluatetheDistrict’sabilitytocontinueasagoingconcernforareasonableperiodoftime.ScheduleofCharterSchoolsThis schedule lists all charter schools chartered by the District, and displays information for each charterschoolandwhetherornotthecharterschoolisincludedintheDistrictaudit.ScheduleofExpendituresofFederalAwardsThe schedule of expenditures of Federal awards includes the Federal grant activity of the District and ispresented on the modified accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of the United States Office of Management and Budget Circular A‐133,AuditsofStates,LocalGovernments,andNon‐ProfitOrganizations.Therefore,someamountspresentedinthisschedulemaydifferfromamountspresentedin,orusedinthepreparationofthefinancialstatements.ReconciliationofAnnualFinancialandBudgetReportwithAuditedFinancialStatementsThisscheduleprovidestheinformationnecessarytoreconcilethefundbalanceofall fundsreportedontheUnauditedActualfinancialreporttotheauditedfinancialstatements.SubrecipientsOf the Federal expenditures presented in the schedule, the District provided no Federal awards tosubrecipients.CombiningFinancialStatementsThesefinancialstatementsreportthefinancialactivityoftheindividualnon‐majorfunds.

OtherIndependentAuditors'Reports

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INDEPENDENTAUDITORS'REPORTONINTERNALCONTROLOVERFINANCIALREPORTINGANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTSPERFORMEDINACCORDANCE

WITHGOVERNMENTAUDITINGSTANDARDSBoardofEducationMountDiabloUnifiedSchoolDistrictConcord,CaliforniaWe have audited, in accordance with the auditing standards generally accepted in the United States ofAmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards issuedbytheComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmentalactivities,eachmajorfund,andtheaggregateremainingfundinformationofMountDiabloUnifiedSchoolDistrictasofandfor the year ended June 30, 2015, and the related notes to the financial statements, which collectivelycomprise Mount Diablo Unified School District's basic financial statements, and have issued our reportthereondatedDecember14,2015.InternalControlOverFinancialReportingInplanningandperformingourauditofthefinancialstatements,weconsideredMountDiabloUnifiedSchoolDistrict’s internalcontrolover financial reporting (internal control) todetermine theauditprocedures thatareappropriateinthecircumstancesforthepurposeofexpressingouropinionsonthefinancialstatements,but not for the purpose of expressing an opinion on the effectiveness of theMount Diablo Unified SchoolDistrict’sinternalcontrol.Accordingly,wedonotexpressanopinionontheeffectivenessoftheMountDiabloUnifiedSchoolDistrict’sinternalcontrol.Ourconsiderationof internalcontrolwasforthelimitedpurposedescribedintheprecedingparagraphandwas not designed to identify all deficiencies in internal control that might be material weaknesses orsignificantdeficienciesandtherefore,materialweaknessesorsignificantdeficienciesmayexistthatwerenotidentified. However, as described in the accompanying schedule of findings and questioned costs, weidentifiedcertaindeficiencies in internalcontrolthatweconsidertobeamaterialweaknessandsignificantdeficiencies.Adeficiencyininternalcontrolexistswhenthedesignoroperationofacontroldoesnotallowmanagementoremployees, in the normal course of performing their assigned functions, to prevent, or detect and correctmisstatements on a timely basis. Amaterialweakness is a deficiency, or a combination of deficiencies, ininternal control such that there is a reasonable possibility that a material misstatement of the District'sfinancial statementswill not be prevented, or detected and corrected on a timely basis. We consider thedeficiencydescribedintheaccompanyingscheduleoffindingsandquestionedcostsasFinding2015‐3tobeamaterialweakness.Asignificantdeficiency isadeficiency,oracombinationofdeficiencies,ininternalcontrolthatislessseverethanamaterialweakness,yet importantenough tomeritattentionby thosechargedwithgovernance. WeconsiderthedeficienciesdescribedintheaccompanyingscheduleoffindingsandquestionedcostsasFindings2015‐1and2015‐2tobesignificantdeficiencies.

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ComplianceandOtherMattersAs part of obtaining reasonable assurance about whether Mount Diablo Unified School District’s financialstatementsarefreeofmaterialmisstatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws, regulations, contracts, and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliancewiththoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpresssuchanopinion.TheresultsofourtestsdisclosedinstancesofnoncomplianceorothermattersthatarerequiredtobereportedunderGovernmentAuditingStandardsandwhicharedescribedintheaccompanyingscheduleoffindingsandquestionedcostsasFindings2015‐4and2015‐5.MountDiabloUnifiedSchoolDistrict’sResponsestoFindingsMountDiabloUnifiedSchoolDistrict’sresponses to the findings identified inourauditaredescribed intheaccompanyingscheduleof findingsandquestionedcosts. MountDiabloUnifiedSchoolDistrict’s responseswere not subjected to the auditing procedures applied in the audit of the financial statements and,accordingly,weexpressnoopiniononthem.PurposeofthisReportThepurposeofthisreportissolelytodescribethescopeofourtestingofinternalcontrolandcomplianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessoftheDistrict'sinternalcontrolor on compliance. This report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the District's internal control and compliance. Accordingly, thiscommunicationisnotsuitableforanyotherpurpose.


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INDEPENDENTAUDITORS’REPORTONSTATECOMPLIANCEBoardofEducationMountDiabloUnifiedSchoolDistrictConcord,CaliforniaReportonStateComplianceWe have audited Mount Diablo Unified School District's compliance with the types of compliancerequirements described in the2014‐15Guide forAnnualAuditsofK‐12LocalEducationAgenciesandStateComplianceReportingthatcouldhaveadirectandmaterialeffectoneachoftheMountDiabloUnifiedSchoolDistrict'sstategovernmentprogramsasnotedonthefollowingpageforthefiscalyearendedJune30,2015.Management'sResponsibilityManagementisresponsibleforcompliancewiththerequirementsoflaws,regulations,contracts,andgrantsapplicabletoitsStateprograms.Auditors'ResponsibilityOurresponsibilityistoexpressanopiniononcomplianceforeachofMountDiabloUnifiedSchoolDistrict'sStateprogramsbasedonourauditofthetypesofcompliancerequirementsreferredtobelow.Weconductedour audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica;thestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards, issuedbytheComptrollerGeneral of theUnited States; and2014‐15Guide forAnnualAuditsofK‐12LocalEducationAgenciesand StateComplianceReporting. Those standards require thatwe plan and perform the audit toobtain reasonable assurance about whether noncompliance with the types of compliance requirementsreferredtobelowoccurred.Anauditincludesexamining,onatestbasis,evidenceaboutMountDiabloUnifiedSchool District’s compliance with those requirements and performing such other procedures as weconsiderednecessaryinthecircumstances.WebelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforeachStateprogram.However, our audit does not provide a legal determination of Mount Diablo Unified School District’scompliance.

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Inconnectionwiththeauditreferredtoonthepriorpage,weselectedandtestedtransactionsandrecordstodeterminetheDistrict'scompliancewiththeStatelawsandregulationsapplicabletothefollowingitems:UnmodifiedOpiniononCompliancewithStateProgramsIn our opinion, Mount Diablo Unified School District complied, in all material respects, with the types ofcompliancerequirementsreferredtoabovefortheyearendedJune30,2015.OtherMattersThe results of our auditing procedures disclosed instances of noncompliance with the compliancerequirements referred to above, which are required to be reported in accordancewith 2014‐15Guide forAnnualAuditsofK‐12LocalEducationAgenciesandStateComplianceReporting,andwhicharedescribed intheaccompanyingscheduleoffindingsandquestionedcostsasFindings2015‐4and2015‐5.District'sResponsestoFindingsMount Diablo Unified School District's responses to the compliance findings identified in our audit aredescribed in the accompanying schedule of findings and questioned costs. Mount Diablo Unified SchoolDistrict'sresponseswerenotsubjectedtotheauditingproceduresintheauditofcomplianceand,accordingly,weexpressnoopinionontheresponses.


Description

ProceduresPerformed

Attendance YesTeacherCertificationandMisassignments YesKindergartenContinuance YesIndependentStudy YesContinuationEducation YesInstructionalTime YesInstructionalMaterials YesRatioofAdministrativeEmployeestoTeachers YesClassroomTeacherSalaries YesEarlyRetirementIncentive NotApplicableGannLimitCalculation YesSchoolAccountabilityReportCard YesJuvenileCourtSchools NotApplicableMiddleorEarlyCollegeHighSchools NotApplicableK‐3GradeSpanAdjustment YesTransportationMaintenanceofEffort YesRegionalOccupationCentersorProgramsMaintenanceofEffort NotApplicableAdultEducationMaintenanceofEffort YesCaliforniaCleanEnergyJobsAct YesAfterSchoolEducationandSafetyProgram YesProperExpenditureofEducationProtectionAccountFunds YesCommonCoreImplementationFunds YesUnduplicatedLocalControlFundingFormulaPupilCounts YesLocalControlandAccountabilityPlan YesCharterSchools:

Attendance NotApplicableModeofInstruction NotApplicableNonclassroom‐BasedInstruction/IndependentStudy NotApplicableDeterminationofFundingforNonclassroom‐BasedInstruction NotApplicableAnnualInstructionalMinutes– ClassroomBased NotApplicableCharterSchoolFacilityGrantProgram NotApplicable

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INDEPENDENTAUDITORS'REPORTONCOMPLIANCEFOR

EACHMAJORFEDERALPROGRAMANDONINTERNALCONTROLOVERCOMPLIANCEREQUIREDBYOMBCIRCULARA‐133

BoardofEducationMountDiabloUnifiedSchoolDistrictConcord,CaliforniaReportonComplianceforEachMajorFederalProgramWe have audited Mount Diablo Unified School District's compliance with the types of compliancerequirements described in the OMB Circular A‐133 Compliance Supplement that could have a direct andmaterialeffectoneachofMountDiabloUnifiedSchoolDistrict'smajorfederalprogramsfortheyearendedJune30,2015.MountDiabloUnifiedSchoolDistrict’smajorfederalprogramsareidentifiedinthesummaryofauditors’resultssectionoftheaccompanyingscheduleoffindingsandquestionedcosts.Management'sResponsibilityManagementisresponsibleforcompliancewiththerequirementsoflaws,regulations,contracts,andgrantsapplicabletoitsfederalprograms.Auditors'ResponsibilityOurresponsibilityistoexpressanopiniononcomplianceforeachofMountDiabloUnifiedSchoolDistrict'smajorfederalprogramsbasedonourauditofthetypesofcompliancerequirementsreferredtoabove. Weconductedour audit of compliance in accordancewithauditing standardsgenerally accepted in theUnitedStatesofAmerica; the standardsapplicable to financial audits contained inGovernmentAuditingStandards,issued by the Comptroller General of the United States; and OMB Circular A‐133, Audits of States, LocalGovernments,andNon‐ProfitOrganizations. Those standards andOMBCircularA‐133 require thatweplanand perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that couldhaveadirect andmaterial effectonamajor federalprogramoccurred.Anauditincludesexamining,onatestbasis,evidenceaboutMountDiabloUnifiedSchoolDistrict’s compliance with those requirements and performing such other procedures as we considerednecessaryinthecircumstances.Webelievethatourauditprovidesareasonablebasisforouropiniononcomplianceforeachmajorfederalprogram.However,ourauditdoesnotprovidealegaldeterminationofMountDiabloUnifiedSchoolDistrict’scompliance.OpiniononEachMajorFederalProgramIn our opinion, Mount Diablo Unified School District complied, in all material respects, with the types ofcompliancerequirementsreferredtoabovethatcouldhaveadirectandmaterialeffectoneachofitsmajorfederalprogramsfortheyearendedJune30,2015.

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ReportonInternalControlOverComplianceManagementofMountDiabloUnifiedSchoolDistrictisresponsibleforestablishingandmaintainingeffectiveinternalcontrolovercompliancewiththetypesofcompliancerequirementsreferredtoabove. Inplanningand performing our audit of compliance, we considered Mount Diablo Unified School District’s internalcontrolovercompliancewiththetypesofrequirementsthatcouldhaveadirectandmaterialeffectoneachmajorfederalprogramtodeterminetheauditingproceduresthatareappropriateinthecircumstancesforthepurposeofexpressinganopiniononcompliance foreachmajor federalprogramand to testandreportoninternal control over compliance in accordance with OMB Circular A‐133, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do notexpressanopinionontheeffectivenessoftheDistrict’sinternalcontrolovercompliance.A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allowmanagement or employees, in the normal course of performing their assignedfunctions,toprevent,ordetectandcorrect,noncompliancewithatypeofcompliancerequirementofafederalprogram on a timely basis. Amaterialweakness in internal control over compliance is a deficiency, or acombination of deficiencies, in internal control over compliance, such that there is a reasonablepossibilitythat material noncompliance with a type of compliance requirement of a federal program will not beprevented, or detected and corrected, on a timely basis. A significant deficiency in internal control overcomplianceisadeficiency,oracombinationofdeficiencies,ininternalcontrolovercompliancewithatypeofcompliancerequirementofafederalprogramthatislessseverethanamaterialweaknessininternalcontrolovercompliance,yetimportantenoughtomeritattentionbythosechargedwithgovernance.Our consideration of internal control over compliance was for the limited purpose described in the firstparagraphofthissectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolovercompliancethatmightbematerialweaknessesorsignificantdeficiencies.Wedidnotidentifyanydeficienciesininternalcontrolover compliance thatweconsider tobematerialweaknesses,asdefinedabove. However,materialweaknessesmayexistthathavenotbeenidentified.ThepurposeofthisreportoninternalcontrolovercomplianceissolelytodescribethescopeofourtestingofinternalcontrolovercomplianceandtheresultsofthattestingbasedontherequirementsofOMBCircularA‐133.Accordingly,thisreportisnotsuitableforanyotherpurpose.


FindingsandQuestionedCosts

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SectionI‐SummaryofAuditor'sResults

FinancialStatements

Typeofauditor'sreportissued UnmodifiedInternalcontroloverfinancialreporting:

Materialweakness(es)identified? YesSignificantdeficiency(s)identifiednotconsideredtobematerialweaknesses? Yes

Noncompliancematerialtofinancialstatementsnoted? No

FederalAwards

Internalcontrolovermajorprograms:Materialweakness(es)identified? NoSignificantdeficiency(s)identifiednotconsideredtobematerialweaknesses? NoneReported

Typeofauditor'sreportissuedoncomplianceformajorprograms: Unmodified

Anyauditfindingsdisclosedthatarerequiredtobereported inaccordancewithCircularA‐133,Section.510(a) NoIdentificationofmajorprograms:

CFDANumbers NameofFederalProgramorCluster

84.027,84.173 SpecialEducation(IDEA)Cluster10.558 ChildandAdultCareFoodProgram

DollarthresholdusedtodistinguishbetweenTypeAandTypeBprograms: 900,147$

Auditeequalifiedaslow‐riskauditee? Yes

StateAwards

Typeofauditor'sreportissuedoncomplianceforstateprograms: Unmodified

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONII‐FINANCIALSTATEMENTFINDINGSThis section identifies the significant deficiencies, material weaknesses, and instances of noncompliancerelatedtothefinancialstatementsthatarerequiredtobereportedinaccordancewithGovernmentAuditingStandards.Pursuant toAssemblyBill (AB)3627,allaudit findingsmustbe identifiedasoneormoreof thefollowingcategories:

FiveDigitCode AB3627FindingTypes10000 Attendance20000 InventoryofEquipment30000 InternalControl40000 StateCompliance42000 CharterSchoolFacilitiesPrograms50000 FederalCompliance60000 Miscellaneous61000 ClassroomTeacherSalaries62000 LocalControlAccountabilityPlan70000 InstructionalMaterials71000 Teacher Misassignments72000 SchoolAccountabilityReportCard

Finding2015‐1:AssociatedStudentBody(ASB)Oversight(30000)Finding:DuringourreviewoftheASBoversightproceduresattheDistrictOffice,wediscoveredthatthereiscurrentlyno reviewprocessofASBaccountingdue to theeliminationofapositionseveralyearsago. TheDistrict Office requests bank statements from the ASBs on a monthly basis, but does not review thestatements or reconciliations. Furthermore, theDistrict Office does not require financial statements to besubmitted to theDistrictOffice. Due to this lackofoversight, theDistrict isunable todetermine if allASBaccounts have beenproperly reported. There is a risk thatASBaccounts couldbemisstated and that thismisstatementwouldgoundetectedbytheDistrictOffice.Recommendation: We recommend that the District establish an employee in the Business Office to beresponsible for the oversight of the ASB accounts. This position should review bank statements andreconciliationsonamonthlybasis. Additionally, incomeand loss statementsandbalancesheetsshouldbereviewedonaquarterlybasis,ataminimum.DistrictResponse: WeareawareoftheinherentriskthatcomeswithoperatingASBsandarededicatedtoensurethattheASBshaveadequatesupervisiontoensureallproceduresarefollowed.Wewillbereviewingtheworkloadofavailable staff toassign thedutiesnecessary toprovide thecompleteoversightof theASBaccountsatalldistrictsschools.Trainingopportunitieswillbeprovidedtogetstaffup‐to‐dateonregulationsandcompliance.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONII‐FINANCIALSTATEMENTFINDINGS(continued)Finding2015‐2:AssociatedStudentBody(ASB)Controls(30000)Finding:DuringourreviewoftheASBcontrolsattheschoolsites,wenotedthefollowing:

1. ASBbookkeepersaresignersonbankaccountsatseveralschools.2. DisbursementswerenotapprovedbytheDistrictrepresentative,ASBand/orstudentrepresentative,

priortoincurringtheexpense.3. Evidenceofreceiptofgoodsorserviceswasnotconsistentlynotedpriortodisbursement.4. Revenuepotentialsarenotpreparedforfundraisingevents.5. Cashreceiptingdocumentationwasinsufficientordidnotagreetotheamountsdeposited.6. Bankreconciliationswerenotpreparedinatimelymannerorwerenotpreparedatall.7. AtPleasantHillMiddleSchool,weidentifiedfourdepositsthatwerenotrecordedintheaccounting

systemoveratwomonthperiod.Atthissite,transactionsarebeingrecordedwhenthebankstatementisreceivedratherthanatthetimethetransactiontakesplace.Additionally,onedisbursementtestedwasfor“StaffAppreciation”.ASBdisbursementsshouldbeforthegeneralwelfareofthestudentsandshouldnotbeforthebenefitofoneindividualorDistrictemployee.Atthissitewealsonotedcheckstockwasnotkeptinasecurelocation.

8. AtCollegeParkHigh,collectionsfortheDistrictarebeingcomingledintheASBaccountfortransfertotheDistrict.ASBaccountsarenotandshouldnotbeusedaspass‐throughorclearingaccountsforDistrictfunds.

Recommendation:Werecommendthefollowing:

1. Those who record the transaction should be separate from those who authorize and execute thetransaction. WethereforerecommendthatthebookkeepersberemovedasauthorizedsignersontheASBbankaccounts.Instead,theyshouldbegiven“viewonly”authority.

2. Education Code Section 48933(b) requires all expenditures from ASB funds be authorized by astudent representative, an advisor, and a district representative (usually a principal or vice‐principal) prior to disbursing the funds. We recommend that the site adopt a procedure forcompliancewiththeEducationCodeinobtainingtherequiredapprovals.

3. We recommend that the site document a physical receipt of the goods or services on thecorresponding invoice, packing slip, or other documentation, such as writing “ok to pay” or“received” and initialing the document prior to issuing the check for payment. This ensures thatpaymentisnotbeingmadeforitemsreceivedincorrectlyornotreceivedatall.

4. It is important for student organizations to have adequate internal controls over their fundraisingevents,properlyevaluatetheeffectivenessofthoseevents,andaccountforafundraiser’sfinancialactivity. Revenuepotentialsareusedasabudgetingandplanningtool.Theformservesasasalesplan that includes expected sales levels, sale prices per unit, expected cost, and net income. Werecommendthatrevenuepotentialsbepreparedforallmajorfundraisingactivities.

5. Werecommendthatbeforeanyeventsareheld,controlproceduresshouldbeestablishedthatwillallowforthereconciliationbetweenmoneycollectedandfundraisersales.

6. Timelyandaccuratebank reconciliationsareprudent andnecessary toensure that theaccountingrecordsmatchtheamountsheldondeposit.Werecommendthebookkeeperperformmonthlybankreconciliations within two weeks after the statement arrives. Furthermore, the Principal or ASBAdvisor should review the bank reconciliation and initial and date the bank statement andreconciliationasevidencetheywerereviewed.ReviewofthebankreconciliationsbysomeoneotherthantheASBBookkeeperisanimportantinternalcontroltodetecterrorsandpossiblequestionableorsuspiciousactivity.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONII‐FINANCIALSTATEMENTFINDINGS(continued)Finding2015‐2:AssociatedStudentBody(ASB)Controls(30000)(continued)Recommendation(continued):

7. Werecommendtransactionsarerecordedastheyoccur,andthatadifferentemployeereconcilethebankstatementtothefinancialrecords. WerecommendthattheDistrictassist inthebookkeepingandreconciliationdutiesuntilafull‐timebookkeepercanbetrainedonthecorrectASBprocedures.WefurtherrecommendthattheDistrictinvestigatethediscrepanciesnotedabove.Werecommendblankcheckstockbekeptsecureandprotectedbykeepingitlockedinadrawerorsafe.

8. We recommend that the ASB is not used to comingle funds collected for theDistrict. These fundsshouldbekeptseparatelyandforwardedtotheDistrictOfficefordeposit.

DistrictResponse: In April 2015, our auditors provided training on ASB Accounting for all of our ASBbookkeepers and some of our elementary office staff. We are currently working on implementing theproceduresandrecommendationsandplanontrainingtheASBadvisorsintheupcomingfiscalyear.Wewillcontinue to reinforce the importance of proper record keeping and reconciliation and address the noteddiscrepanciesassoonaspossible.Finding2015‐3:Year‐EndClosing(30000)Finding: Due to limited District staffing, the District was unable to provide adequate supportingdocumentation for several account balances during our audit. The District could not provide evidence tosupportthebalancesinaccountspayableintheGeneralFund.Additionally,theDistrictwasunabletoprovidesupportingschedulesforanycapitalassetsacquiredpriortothe2013‐14fiscalyear.Ourauditwasabletodeterminethatthecurrentyearexpenditureswereforpropercapitalcosts,butwewereunabletosubstantiatethebalanceofthecapitalassetclassespriortothe2013‐14fiscalyear.CapitalassetsrepresentoneofthelargestinvestmentsoftheDistrict;controlandaccountabilityare of significant concern. Generally accepted accounting principles (GAAP) and Education Code Section35168requiretheDistricttomaintainrecordsthatproperlyaccountforcapitalassets.Capitalassetrecordsserve as amanagement tool and have an important bearing onmanagement decisions, such as long‐rangeacquisitionandabandonmentprojections.The lack of accounting records could lead to thematerialmisstatement of the financial statements of theDistrict.Ourauditprocedureswereexpandedsignificantlytoallowustoobtainsufficientauditevidencetodeterminethattheaccountbalanceswerenotmateriallymisstated.Recommendation: We recommend that adequate supporting documentation be maintained for alltransactions and account balances. The District should investigate the need for additional staffing in theBusinessoffice.Additionally,werecommendthattheDistrictcompileanup‐to‐datecapitalassetlistingandinvestigatetheutilityinimplementingacapitalassetsystemtotracktheDistrict'scapitalassets.DistrictResponse: Weunderstandtheimportanceofmaintainingrecordsthataccountforcapitalassetstoassistwith long‐rangeacquisitionand lossprojections.Wewillberesearchinganewsystemtoassistus inestablishingacurrentlistingandinmaintainingourcapitalassetrecords.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONIII‐FEDERALAWARDFINDINGSANDQUESTIONEDCOSTSThis section identifies the audit findings required to be reported by Circular A‐133, Section .510(a) (e.g.,significantdeficiencies,materialweaknesses,andinstancesofnoncompliance,includingquestionedcosts).Therewerenofederalawardfindingsorquestionedcostsin2014‐15.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONIV‐STATEAWARDFINDINGSANDQUESTIONEDCOSTSThis section identifies the audit findings pertaining to noncompliance with state program rules andregulations.Finding2015‐4:UnduplicatedPupilCount(40000)Criteria: Supplemental and concentration grant amounts are calculated based on the percentage of"unduplicated pupils" enrolled in the LEA on Census Day (first Wednesday in October). The percentageequals:

Unduplicatedcountofpupilswho(1)areEnglishlearners,(2)meetincomeorcategoricaleligibilityrequirements for freeorreduced‐pricemealsundertheNationalSchoolLunchProgram,or(3)arefosteryouth."Unduplicatedcount"meansthateachpupiliscountedonlyonceevenifthepupilmeetsmorethanoneofthesecriteria(ECsections2574(b)(2)and42238.02(b)(1)).

DividedbytotalenrollmentintheLEA(ECsections2574(b)(1)and42238.02(b)(5)).Allpupilcounts

arebasedonFall1certifiedenrollmentreportedintheCALPADSasofCensusDay.Condition:DuringourtestingofthefreeandreducedpricemealeligiblestudentsreportedintheCALPADS1.17and1.18reports,wenotedthattenstudentsthatwerereportedasqualifyingforfreeorreducedpricedmealsdidnothaveanapplicationonfile forthe2014‐15fiscalyear.This isduetothefactthattheDistrictapplied the local “grace period” to the CALPADS reporting and as a result,many students in theCALPADSsystemarereportedbasedon2013‐14applicationdatainsteadof2014‐15applicationdata.Additionally,wenotedonestudentwhowasclassifiedasanELstudent,buthadnoCELDTorotherdocumentationtosupportthedesignation.Context:Wenotederrorsatfiveoftheschoolstested,foratotaloftenexceptionsforFRPMapplicationsandoneerrorinclassificationofELstudents.Cause: Some departments were unaware of the requirement to reclassify pupils who did not submit aqualifyingfreeandreducedpricemealapplicationduring2014‐15sincetheCALPADScutoffdatewasbeforethelocal“graceperiod”ended.TheELstudentdesignationwasnotsupportedbydocumentsavailableattheDistrict.QuestionedCosts:$2,501Effect:TheunduplicatedpupilcountsreportedintheCALPADS1.17and1.18reportsshouldbeadjustedforthefollowingchangesasaresultoftheproceduresperformed:

SchoolSiteCALPADSReported

FRPM ELAdjustedTotal

MeadowHomesElementary 855 (1) ‐ 854OlympicContinuationHigh 238 (1) (1) 236PleasantHillElementary 200 (1) ‐ 199ValleyViewMiddle 309 (4) ‐ 305WrenAvenueElementary 431 (3) ‐ 428

Aggregateremainingsites 13,575 ‐ ‐ 13,575District‐wide 15,608 (10) (1) 15,597

Adjustedbasedoneligibilityfor:

Theenrollmentcountof31,696wasnotimpactedasaresultoftheproceduresperformed.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTScheduleofAuditFindingsandQuestionedCostsFortheFiscalYearEndedJune30,2015SECTIONIV‐STATEAWARDFINDINGSANDQUESTIONEDCOSTS(continued)Finding2015‐4:UnduplicatedPupilCount(40000)(continued)Recommendation:Werecommend that theDistrictworkwith theChildNutrition Servicesdepartment toupdatetheCALPADSsystemonceallapplicationsarereceived.Althoughthereisagraceperiodrecognizedata local level, the District should update CALPADS retroactively to reflect the current year applicationinformationinthereportingsoftware.Wealsorecommendthatproceduresareestablishedtoensurethatthestudent informationsystemwhichisusedforCALPADSreportingisupdatedtoreflectthechangesmadeintheChildNutritionServices.DistrictResponse: Amemowas distributed inMarch 2015 to inform the necessary departments of thechange inprocedureshowever therewasan issuewith the transferof informationbetweenAeriesandtheFoodServicesInformationsystem.AmeetingwillbeheldtoreviewprocedurestoensureeachdepartmentinvolvedinupdatingtheCALPADSdataisawareofthereportingrequirements.WewillupdateourCALPADSretroactivelytoreflectthecurrentyearapplication.Finding2015‐5:SchoolAccountabilityReportCard(SARC)(72000)Criteria: The informationon theSchoolAccountabilityReportCard (SARC) shouldbe reported consistentwith themost recently completed Facility InspectionTool for that School as required by the provisions ofEducationCodeSection33126.Condition:TheinformationpublishedontheSARCforWrenElementarySchoolwasincorrectlyreportedas‘Good’insteadof‘Fair’intheinteriorsurfacescategory.QuestionedCost:ThereisnoquestionedcostastheDistrictreceivesnofundingfromthisprogram.Cause:Thedatawasenteredinerror.Effect:InformationregardingtheconditionofWrenElementarySchoolwasincorrectlyreported.Recommendation:WerecommendthattheDistrictimplementaprocedureforreviewingdatatoensureitisbasedonthemostcurrentinformation.DistrictResponse: TheResearchandDevelopmentDepartmentwent througha reorganizationwhich leftvacancyinkeypositions.TheAssessment,ResearchandEvaluationDepartmentisnowfullystaffedandwillimplementaprocedureforreviewingalldatatoensurecompliance.

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MOUNTDIABLOUNIFIEDSCHOOLDISTRICTSummaryScheduleofPriorAuditFindingsFortheFiscalYearEndedJune30,2015

Original

FindingNo.

Finding

Code

Recommendation

CurrentStatus Finding2014‐1:AssociatedStudentBody(ASB)Oversight

DuringourreviewoftheASBoversightproceduresatthe District Office, we discovered that there iscurrentlynoreviewprocessofASBaccountingduetothe elimination of a position several years ago. TheDistrict Office requests bank statements from theASBs on a monthly basis, but does not review thestatements or reconciliations. Furthermore, theDistrictOfficedoesnotrequirefinancialstatementstobesubmittedtotheDistrictOffice.Duetothislackofoversight,theDistrictisunabletodetermineifallASBaccountshavebeenproperlyreported.Thereisariskthat ASB accounts could be misstated and that thismisstatement would go undetected by the DistrictOffice.

30000 WerecommendthattheDistrictestablishanemployeeintheBusinessOfficetoberesponsiblefortheoversightoftheASBaccounts. Thispositionshouldreviewbankstatementsandreconciliationsonamonthlybasis.Additionally,incomeandlossstatementsandbalancesheetsshouldbereviewedonaquarterlybasis,ataminimum.

NotImplemented.SeeFinding2015‐1.

Finding2014‐2:AssociatedStudentBody(ASB)Controls

During our review of the ASB controls at the schoolsites,wenotedthefollowing:1. ASB bookkeepers are signers on bank accounts at

severalschools.2. Disbursements were not approved by the District

representative,ASBand/orstudentrepresentative,priortoincurringtheexpense.

3. Evidence of receipt of goods or services was notconsistentlynotedpriortodisbursement.

4. Revenuepotentialsarenotpreparedforfundraisingevents.

5. Cash receipting documentationwas insufficient ordidnotagreetotheamountsdeposits.

6. Bankreconciliationswerenotpreparedinatimelymannerorwerenotpreparedatall.

7. At Mt. Diablo High, site personnel were unable toprovide supporting documentation for mosttransactions.Additionally,basedonourinterviewswith site personnel, we noted a lack of controlimplementation over record‐keeping,disbursements,receiptingandreconciliations.

30000 1. Those who record the transaction should be separatefrom those who authorize and execute the transaction.We therefore recommend that the bookkeepers beremovedasauthorizedsignersontheASBbankaccounts.Instead,theyshouldbegiven“viewonly”authority.

2. Education Code Section 48933(b) requires allexpendituresfromASBfundsbeauthorizedbyastudentrepresentative, an advisor, and a district representative(usuallyaprincipalorvice‐principal)priortodisbursingthe funds. We recommend that the site adopt aprocedure for compliance with the Education Code inobtainingtherequiredapprovals.

3. Werecommendthatthesitedocumentaphysicalreceiptof the goods or services on the corresponding invoice,packingslip,orotherdocumentation,suchaswriting“oktopay”or“received”andinitialingthedocumentpriortoissuingthecheckforpayment.Thisensuresthatpaymentis not beingmade for items received incorrectly or notreceivedatall.

PartiallyImplemented.SeeFinding2015‐2.

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Original

FindingNo.

Finding

Code

Recommendation

CurrentStatusFinding2014‐2:AssociatedStudentBody(ASB)Controls(continued)

Wenotedthefollowingconcerns: ASB accounting records have not beenmaintained in the computerized system forseveralmonths.

The safe contained numerous checks, somedating as far back as January, which had notbeendeposited.

The safe also contained cash in excess of$1,900 with no indication of what collectionactivityhadgeneratedtheincome.

Bank reconciliationshavenotbeencompletedsinceJanuary

8. Wenotedthepurchaseofgiftcards,aniPod,andareimbursement to an employee with insufficientdocumentation. Thesedisbursementsappeartobeunallowableorquestionable.

4. It is important for student organizations to have

adequateinternalcontrolsovertheirfundraisingevents,properly evaluate the effectiveness of those events, andaccount for a fundraiser’s financial activity. Revenuepotentialsareusedasabudgetingandplanningtool.Theform serves as a sales plan that includes expected saleslevels,salepricesperunit,expectedcost,andnetincome.Werecommend that revenuepotentialsbeprepared forallmajorfundraisingactivities.

5. Werecommend thatbeforeanyeventsareheld, controlprocedures shouldbeestablished thatwill allow for thereconciliation between money collected and fundraisersales.

6. Timely and accurate bank reconciliations are prudentand necessary to ensure that the accounting recordsmatch theamountsheldondeposit.Werecommendthebookkeeperperformmonthlybankreconciliationswithintwoweeksafterthestatementarrives.Furthermore,thePrincipal or ASB Advisor should review the bankreconciliation and initial and date the bank statementand reconciliation as evidence they were reviewed.Review of the bank reconciliations by someone otherthantheASBBookkeeperisanimportantinternalcontroltodetect errorsandpossiblequestionableor suspiciousactivity.

7. We recommend that the District assist in thebookkeeping and reconciliation duties until a full‐timebookkeeper can be trained on the correct ASBprocedures. We further recommend that the Districtinvestigatethediscrepanciesnotedabove.

8. We recommend that the District investigate the noteddiscrepanciesandassisttheASBindevelopingguidelinesforallowableandunallowablepurchases.

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Original

FindingNo.

Finding

Code

Recommendation

CurrentStatus

Finding2014‐3:Year‐EndClosing

Due to thehighdegreeofmanagement turnoverandlimited District staffing, the District was unable toprovide adequate supporting documentation forseveral account balances during our audit. TheDistrict could not provide evidence to support thebalancesinaccountsreceivableinmultiplefundsandaccountspayableintheGeneralFund.Additionally, the District was unable to providesupporting schedules for any capital assets acquiredpriortothe2013‐14fiscalyear.Ourauditwasabletodeterminethatthecurrentyearexpenditureswereforproper capital costs, but we were unable tosubstantiate the balance of the capital asset classesprior to the current fiscal year. Capital assetsrepresent one of the largest investments of theDistrict; control and accountability are of significantconcern. Generally accepted accounting principles(GAAP)andEducationCodeSection35168requiretheDistricttomaintainrecordsthatproperlyaccountforcapital assets. Capital asset records serve as amanagement tool and have an important bearing onmanagementdecisions,suchaslong‐rangeacquisitionandabandonmentprojections.The lack of accounting records could lead to thematerial misstatement of the financial statements ofthe District. Our audit procedures were expandedsignificantly to allow us to obtain sufficient auditevidencetodeterminethattheaccountbalanceswerenotmateriallymisstated.

30000 Werecommendthatadequatesupportingdocumentationbemaintained for all transactions and account balances. TheDistrictshouldinvestigatetheneedforadditionalstaffinginthe Business Office. Additionally, we recommend that theDistrict compile an up‐to‐date capital asset listing, andinvestigatetheutilityinimplementingacapitalassetsystemtotracktheDistrict’scapitalassets.


Finding2014‐4:CALPADSUnduplicatedPupilCount

In order to be counted in CALPADS report 1.17, astudent must have an open primary or short‐termenrollment in CALPADS over Census Day (the firstWednesday inOctober)andmeetoneormoreof thefollowingcriteria:

40000 We recommend that the District implement a reviewprocedure of theCALPADS informationprior to the reportssubmissiontotheCaliforniaDepartmentofEducation.


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Original

FindingNo.

Finding

Code

Recommendation

CurrentStatusFinding2014‐4:CALPADSUnduplicatedPupilCount(continued)

Haveaprogramrecordwithaneducationprogram

codeofhomeless,Migrant,FreeMealProgram,orReduced‐Price Meal Program, that is open overCensusDay

Have an English Language Acquisition Status of“Englishlearner”(EL)thatiseffectiveoverCensusDay

Bedirectly certified in July throughNovember asbeingeligibleforfreemealsbasedonastatewidematchconductedbyCALPADS

Be identified as a foster youth based on astatewidematchconductedbyCALPADS

Be identified as foster youth through a local datamatchingprocess and submitted to andvalidatedbyCALPADS(functionalitywillbeimplementedinfall2014)

DuringourtestingoftheFreeandReducedPriceMeal(FRPM) eligible students reported in the CALPADS1.17and1.18reports,wenoted10studentswhowereclassified as FRPM eligible, but did not have anapplication or income eligibility form on file tosupport thedesignation. Wenotedone studentwhowas classified as EL, bud did not have evidence tosupport thedesignation. Additionally,wenoted twostudentswhowereclassifiedasFRPMeligibleandEL,but who did not have evidence supporting eitherdesignation.

Finding2014‐5:P‐2andAnnualAttendanceReports

Education Code Section 51747(c) and the CaliforniaCode of Regulations, Title 5, Section 11702 requirethatattendancegeneratedthroughindependentstudybe supported by a fully executed master agreementwhichcontainsalloftherequiredelements.Additionally,theP‐2ReportisrequiredtoreportADAforstudentsintransitionalkindergarten.

10000 WerecommendthattheDistrictworkwiththesitestorevisetheir master agreement to include all of the requiredelements. Additionally,werecommend that thesite reviewall attendance reports for accuracy to ensure there are noinputerrorsinthefuture.

Implemented.

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Original

FindingNo.

Finding

Code

Recommendation

CurrentStatusFinding2014‐5:P‐2andAnnualAttendanceReports(continued)

During our review of the independent study masteragreements, we noted that several agreements werelacking several of the required elements as follows:majorobjectivesofcoursestudy,methodsofstudyforthe pupil’s work, specific resources to be madeavailabletothepupilbytheDistrict,andthenumberof course credits to be earned if the objective isreached.Theexceptionswerenotedasfollows: AyersElementary:Fiveoftheindependentstudycontractssampled

DiabloViewMiddle:Fouroftheindependentstudycontractssampled

Mt.DiabloElementary:Fiveoftheindependentstudycontractssampled

WoodsideElementary:Threeoftheindependentstudycontractssampled

SilverwoodElementary:Fouroftheindependentstudycontractssampled

SequoiaMiddle:Threeoftheindependentstudycontractssampled

PineHollowMiddle:Twooftheindependentstudycontractssampled

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BoardofEducationMountDiabloUnifiedSchoolDistrictConcord,CaliforniaInplanningandperformingourauditofthebasicfinancialstatementsofMountDiabloUnifiedSchoolDistrictforthe fiscal year ending June 30, 2015, we considered its internal control structure in order to determine ourauditing procedures for the purpose of expressing our opinion on the basic financial statements and not toprovideassuranceontheinternalcontrolstructure.However, during our audit we noted matters that are an opportunity for strengthening internal controls andoperating efficiency. The following items represent conditions noted by our audit thatwe consider importantenoughtobringtoyourattention.ThisletterdoesnotaffectourreportdatedDecember14,2015,onthefinancialstatementsofMountDiabloUnifiedSchoolDistrict.Observation: During testing of cash disbursements at the District Office, we noted seven of forty‐sevendisbursementslackedpurchaseorders,andfourlackedevidenceofpre‐approval.Recommendation: It is recommended that the staff be reminded of the importance of following properprocedures for expenditures. This is important as it ensures purchases are made within properly and withinbudgetaryguidelines.Wewillreviewthestatusofthecurrentyearcommentsduringournextauditengagement.


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APPENDIX B

GENERAL AND FINANCIAL INFORMATION ABOUT THE DISTRICT

The information in this and other sections concerning the District's operations and operating budget is provided as supplementary information only, and it should not be inferred from the inclusion of this information in this Official Statement that the principal of or interest on the Bonds is payable from the General Fund of the District. The Bonds are payable from the proceeds of an ad valorem tax required to be levied by the County in an amount sufficient for the payment thereof. See "SECURITY FOR THE BONDS" in the front half of the Official Statement.

General Information

The District is a public unified school district located in Contra Costa County (the

“County”) in the State of California (the “State”). The District was established on July 1, 1949, and is located in the northwestern portion the County. The District covers approximately 150 square miles including the cities of Concord, Pleasant Hill and Clayton, portions of the cities of Walnut Creek, Pittsburg and Martinez, and unincorporated areas of the County, including Pacheco and Bay Point, and is located approximately 30 miles northeast of San Francisco. The District provides kindergarten through twelfth grade education services in thirty-one elementary schools, nine middle schools, five high schools and six alternative schools and programs, including adult education in two adult education centers. The District’s enrollment for fiscal year 2016-17 is budgeted for 32,043 students.

Administration

Board of Education. The District is governed by a five-member Board of Education,

with each member elected to a four-year term. Elections for positions to the Board of Education are held every two years, alternating between two and three available positions. The Board of Education is charged with the responsibility for the general policy and direction of education in the District based on State of California and Federal Constitutions and laws, and State Board of Education rules and regulations. The Board of Education acts as a committee of the whole for all matters concerning the District. All actions taken by the Board of Education are done in an appropriately noticed public meeting.

The powers and duties of the Board include governance, executive and judicial

functions. These relate to the Board's own operations as a governing body and to all functions of the District.

Current members of the Board of Education, together with their office and the date their

term expires, are listed in the following table.

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MT. DIABLO UNIFIED SCHOOL DISTRICT Board of Education

Name Office Term Expires Cheryl Hansen President 2018 Debra Mason Vice President 2018 Brian Lawrence Member 2016 Barbara Oaks Member 2016 Linda Mayo Member 2018

Superintendent and Administrative Personnel. The Superintendent of the District,

appointed by the Board, is responsible for management of the day-to-day operations and supervises the work of other District administrators. Superintendent Nellie Meyer, Ed.D., has served as Superintendent of the District since September 23, 2013. Prior to joining the District, Dr. Meyer worked at San Diego Unified School District where she served as the Deputy Superintendent of School Support Services from 2010 through 2013. She has a total of 34 years of education experience. Dr. Meyer earned a Bachelor’s Degree in Psychology, a Master’s Degree in Administration and a Doctorate in Education from San Diego State University.

Recent Enrollment Trends

The following table shows recent enrollment history for the District and projections for

the 2016-17 fiscal year.

MT. DIABLO UNIFIED SCHOOL DISTRICT Annual Enrollment

Fiscal Years 2003-04 through 2016-17

Fiscal Year Enrollment 2003-04 36,857 2004-05 36,316 2005-06 35,924 2006-07 35,685 2007-08 35,355 2008-09 34,953 2009-10 34,316 2010-11 34,116 2011-12 33,987 2012-13 32,001 2013-14 31,955 2014-15 31,923 2015-16 32,005 2016-17* 32,043

* Projected. Includes charter school enrollment of 248 students. Source: California Department of Education Demographics Office;; District 2016-17 Adopted Budget for 2016-17 Projection.

There are three charter schools operating within District boundaries. Eagle Peak

Montessori Charter School began operations in 1996 and is District-sponsored. The other two charter schools began operations in fiscal year 2016-17 and are not sponsored by the District.

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Employee Relations In fiscal year 2016-17, the District employs 1,764.49 full time equivalent (“FTE”)

certificated academic professionals, and 984.57 FTE classified employees, and 213.66 FTE management, supervisor and confidential professionals.

The following table summarizes current bargaining units, employee types covered and

the status of current contracts.

MT. DIABLO UNIFIED SCHOOL DISTRICT Bargaining Units Fiscal Year 2016-17

Bargaining Unit Type of Employees Covered

Contract Expiration Date(1)

Mt. Diablo Education Assn.

Certificated - non-psychologists June 30, 2016

Mt. Diablo School Psychologist Assn.

Certificated - psychologists June 30, 2016

Teamsters Local Union #856

Classified - maintenance, operations, transportation

June 30, 2016

Public Employees Union, Local #1

Classified - clerical, secretarial, technical

June 30, 2016

California School Employees Assn. Classified - instructional aide and campus supervisor

June 30, 2016

(1) Parties perform pursuant to expired terms during renegotiations.

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DISTRICT FINANCIAL INFORMATION The information in this and other sections concerning the District’s operations and

operating budget is provided as supplementary information only, and it should not be inferred from the inclusion of this information in this Official Statement that the principal of or interest on The Bonds is payable from the general fund of the District. The Bonds are payable from the proceeds of an ad valorem tax required to be levied by the County in an amount sufficient for the payment thereof.

Education Funding Generally

School districts in California receive operating income primarily from two sources: the State funded portion which is derived from the State’s general fund, and a locally funded portion, being the district’s share of the one percent general ad valorem tax levy authorized by the California Constitution. As a result, decreases or deferrals in education funding by the State could significantly affect a school district’s revenues and operations.

From 1973-74 to 2012-13, California school districts operated under general purpose

revenue limits established by the State Legislature. In general, revenue limits were calculated for each school district by multiplying (1) the average daily attendance (“ADA”) for such district by (2) a base revenue limit per unit of ADA. The revenue limit calculations were adjusted annually in accordance with a number of factors designated primarily to provide cost of living increases and to equalize revenues among all California school districts of the same type. Funding of the District's revenue limit was provided by a mix of local property taxes and State apportionments of basic and equalization aid. Generally, the State apportionments amounted to the difference between the District's revenue limit and its local property tax revenues.

The fiscal year 2013-14 State budget package (the “2013-14 State Budget”) replaced

the previous K-12 finance system with a new formula known as the Local Control Funding Formula (the “LCFF”). Under the LCFF, revenue limits and most state categorical programs were eliminated. School districts instead receive funding based on the demographic profile of the students they serve and gain greater flexibility to use these funds to improve outcomes of students. The LCFF creates funding targets based on student characteristics. For school districts and charter schools, the LCFF funding targets consist of grade span-specific base grants plus supplemental and concentration grants that reflect student demographic factors. The LCFF includes the following components:

• A base grant for each local education agency per unit of ADA, which varies

with respect to different grade spans. The base grant is $2,375 more than the average revenue limit provided prior to LCFF implementation. The base grants will be adjusted upward each year to reflect cost-of-living increases. In addition, grades K-3 and 9-12 are subject to adjustments of 10.4% and 2.6%, respectively, to cover the costs of class size reduction in grades K-3 and the provision of career technical education in grades 9-12.

• A 20% supplemental grant for English learners, students from low-income

families and foster youth to reflect increased costs associated with educating those students.

• An additional concentration grant of up to 50% of a local education

agency’s base grant, based on the number of English learners, students

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from low-income families and foster youth served by the local agency that comprise more than 55% of enrollment.

• An economic recovery target to ensure that almost every local education

agency receives at least their pre-recession funding level, adjusted for inflation, at full implementation of the LCFF.

The LCFF was implemented for fiscal year 2013-14 and will be phased in gradually.

Beginning in fiscal year 2013-14, an annual transition adjustment was required to be calculated for each school district, equal to each district’s proportionate share of the appropriations included in the State budget (based on the percentage of each district’s students who are low-income, English learners, and foster youth (“Targeted Students”), to close the gap between the prior-year funding level and the target allocation at full implementation of LCFF. In each year, districts will have the same proportion of their respective funding gaps closed, with dollar amounts varying depending on the size of a district’s funding gap.

Based on revenue projections, districts will reach what is referred to as “full funding” in

eight years, being fiscal year 2020-21. This projection assumes that the State’s economy will improve each year;; if the economy falters it could take longer to reach full funding.

The target LCFF amounts for State school districts and charter schools based on grade

levels and Targeted Students is shown below.

Grade Span Funding at Full LCFF Implementation (Target Amount)

Grade Span

Base Grant(1)

K-3 Class Size

Reduction and 9-12

Adjustments

Average

Assuming 0% Targeted Students

Average


Average


Average Assuming

100% Targeted Students

K-3 $6,845 $712 $7,557 $7,935 $8,313 $10,769 4-6 6,947 N/A 6,947 7,294 7,642 9,899 7-8 7,154 N/A 7,154 7,512 7,869 10,194 9-12 8,289 $216 8,505 8,930 9,355 12,119

(1) Does not include adjustments for cost of living. Source: California Department of Education.

The new legislation included a “hold harmless” provision which provided that a district or

charter school would maintain total revenue limit and categorical funding at least equal to its fiscal year 2012-13 level, unadjusted for changes in ADA or cost of living adjustments.

The LCFF includes an accountability component. Districts are required to increase or

improve services for English language learners, low income, and foster youth students in proportion to supplemental and concentration grant funding received. All school districts, county offices of education, and charter schools are required to develop and adopt local control and accountability plans, which identify local goals in areas that are priorities for the State, including pupil achievement, parent engagement, and school climate.

County superintendents review and provide support to the districts under their

jurisdiction, and the Superintendent of Public Instruction performs a corresponding role for county offices of education. In addition, the 2013-14 State Budget created the California Collaborative for Education Excellence to advise and assist school districts, county offices of

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education, and charter schools in achieving the goals identified in their plans. Under the LCFF and related legislation, the State will continue to measure student achievement through statewide assessments, produce an Academic Performance Index for schools and subgroups of students, determine the contents of the school accountability report card, and establish policies to implement the federal accountability system.

District Accounting Practices

The accounting practices of the District conform to generally accepted accounting

principles in accordance with policies and procedures of the California School Accounting Manual. This manual, according to Section 41010 of the California Education Code, is to be followed by all California school districts.

District accounting is organized on the basis of fund groups, with each group consisting

of a separate set of self-balancing accounts containing assets, liabilities, fund balances, revenues and expenditures. The major fund classification is the general fund which accounts for all financial resources not requiring a special fund placement. The District's fiscal year begins on July 1 and ends on June 30.

District expenditures are accrued at the end of the fiscal year to reflect the receipt of

goods and services in that year. Revenues generally are recorded on a cash basis, except for items that are susceptible to accrual (measurable and/or available to finance operations). Current taxes are considered susceptible to accrual. Revenues from specific state and federally funded projects are recognized when qualified expenditures have been incurred. State block grant apportionments are accrued to the extent that they are measurable and predictable. The State Department of Education sends the District updated information from time to time explaining the acceptable accounting treatment of revenue and expenditure categories.

The Governmental Accounting Standards Board (“GASB”) published its Statement No.

34 “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments” on June 30, 1999. Statement No. 34 provides guidelines to auditors, state and local governments and special purpose governments such as school districts and public utilities, on new requirements for financial reporting for all governmental agencies in the United States. Generally, the basic financial statements and required supplementary information should include (i) Management’s Discussion and Analysis;; (ii) financial statements prepared using the economic measurement focus and the accrual basis of accounting, (iii) fund financial statements prepared using the current financial resources measurement focus and the modified accrual method of accounting and (iv) required supplementary information.

District Financial Statements

General. The District’s general fund finances the legally authorized activities of the

District for which restricted funds are not provided. General fund revenues are derived from such sources as State school fund apportionments, taxes, use of money and property, and aid from other governmental agencies. The District’s June 30, 2015 Audited Financial Statements were prepared by Nigro & Nigro PC, A Professional Accountancy Corporation, Murrieta, California. Audited Financial Statements for the District for the fiscal year ended June 30, 2014, and prior fiscal years are on file with the District and available for public inspection at the Office of the Superintendent of the District, 1936 Carlotta Drive, Concord, California 94519, Phone: (925) 682-8000. See Appendix A hereto for the June 30, 2015 Audited Financial Statements.

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Copies of such financial statements will be mailed to prospective investors and their representatives upon written request to the District.

The District has not requested nor did the District obtain permission from the Auditor to

include the audited financial statements as an appendix to this Official Statement. Accordingly, the Auditor has not performed any post-audit review of the financial condition or operations of the District.


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General Fund Revenues, Expenditures and Changes in Fund Balance. The following table shows the audited general fund income and expense statements for the District for the fiscal years 2010-11 through 2014-15.

MT. DIABLO UNIFIED SCHOOL DISTRICT General Fund Revenues, Expenditures and Changes in Fund Balance

Fiscal Years 2010-11 through 2014-15 (Audited)

Revenues

Audited 2010-11

Audited 2011-12

Audited 2012-13

Audited 2013-14

Audited 2014-15

Revenue Limit Sources/LCFF(1) $171,505,099 $170,994,708 $161,297,824 $204,109,518 $222,626,709 Federal Sources 33,588,624 22,966,174 24,572,089 21,971,000 20,477,079 Other State Sources 79,147,484 74,463,149 76,424,842 40,485,576 43,949,387 Other Local Sources 13,360,030 14,937,851 16,021,305 16,050,567 14,833,542 Total Revenues 297,601,237 283,361,882 278,316,060 282,616,661 301,886,717 Expenditures Current: Instruction 180,284,893 188,973,943 181,669,002 171,790,834 191,602,811 Instruction-Related Services: Supervision of Instruction 9,950,592 11,042,636 12,527,763 11,807,629 12,724,248 Instructional Library, Medial and Technology 2,912,696 2,919,298 2,835,987 2,922,888 3,871,317 School Site Administration 18,976,702 18,618,835 17,433,678 17,513,002 20,868,863

Pupil Support Services: Home-to-School Transportation 8,365,249 10,982,450 8,632,237 10,392,440 9,747,833 Food Services 436 758 19,554 6,617 1,363 All other Pupil Services 14,359,565 17,251,623 18,232,205 18,565,800 15,502,938

Ancillary Services 1,537,290 1,487,302 1,189,404 1,198,065 1,441,559 Community Services 579,996 573,208 613,671 580,607 6,289 Enterprise Activities 44,954 61,498 6,279 163 32 General Administrative Services: Data Processing Services 2,643,382 2,754,041 2,796,358 2,861,490 2,780,700 Other General Administration 7,504,490 7,419,952 7,866,645 8,664,291 8,391,645

Plant Services 24,113,822 21,919,722 20,227,696 20,517,116 22,111,775 Transfers of Indirect Costs -- -- -- (426,307) (582,745) Transfers to other agencies 1,060,197 155,927 366,255 -- --

Intergovernmental Transfers -- -- -- 686,818 2,848,424 Capital Outlay -- -- -- 371,077 1,022,534 Facilities Acquisition and Maintenance 215,246 31,539 206,762 -- -- Debt Service: Principal 486,961 176,389 226,857 177,237 465,477 Interest 259,763 33,603 27,907 21,927 42,122

Total Expenditures 273,296,234 284,402,724 274,878,260 267,651,694 292,847,185 Excess of Revenues Over/(Under) Expenditures 24,304,003 (1,040,842) 3,347,800 14,964,967 9,039,532 Other Financing Sources (Uses) Interfund Transfers In 1,572,413 -- -- -- -- Interfund Transfers Out (3,614,453) (3,999,670) (3,637,547) (3,789,964) (3,276,196) Other Sources 1,326,000 -- -- -- -- Proceeds From Capital Leases -- -- -- 996,607 -- Total Other Financing Sources (Uses) (716,040) (3,999,670) (3,637,547) (2,793,357) (3,276,196) Net Change in Fund Balance 23,588,963 (5,040,512) (199,747) 12,171,610 5,763,336 Fund Balances, beginning of fiscal year (July 1) 35,135,018 58,723,981 53,683,469 53,483,722 65,758,065 Adjustments for Restatement -- -- -- 102,733 -- Fund Balances, as restated 35,135,018 58,723,981 53,683,469 53,586,455 65,758,065 Fund Balance, end of fiscal year (June 30) $58,723,981 $53,683,469 $53,483,722 $67,758,065 $71,521,401 (1) LCFF commenced in fiscal year 2013-14. Source: District Audited Financial Statements for fiscal years 2010-11 through 2014-15.

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District Budget and Interim Financial Reporting Budgeting – Education Code Requirements. The District is required by provisions of

the State Education Code to maintain a balanced budget each year, in which the sum of expenditures and the ending fund balance cannot exceed the sum of revenues and the carry-over fund balance from the previous year. The State Department of Education imposes a uniform budgeting and accounting format for school districts. The budget process for school districts was substantially amended by Assembly Bill 1200 (“AB 1200”), which became State law on October 14, 1991. Portions of AB 1200 are summarized below.

School districts must adopt a budget on or before July 1 of each year. The budget must

be submitted to the county superintendent within five days of adoption or by July 1, whichever occurs first. A district may be on either a dual or single budget cycle. The dual budget option requires a revised and readopted budget by September 1 that is subject to State-mandated standards and criteria. The revised budget must reflect changes in projected income and expenses subsequent to July 1. The single budget is only readopted if it is disapproved by the county office of education, or as needed. The District is on a single budget cycle and adopts its budget on or before July 1.

For both dual and single budgets submitted on July 1, the county superintendent will

examine the adopted budget for compliance with the standards and criteria adopted by the State Board of Education and identify technical corrections necessary to bring the budget into compliance, will determine if the budget allows the district to meet its current obligations and will determine if the budget is consistent with a financial plan that will enable the district to meet its multi-year financial commitments. On or before August 15, the county superintendent will approve or disapprove the adopted budget for each school district. Budgets will be disapproved if they fail the above standards. The district board must be notified by August 15 of the county superintendent’s recommendations for revision and reasons for the recommendations. The county superintendent may assign a fiscal advisor or appoint a committee to examine and comment on the superintendent’s recommendations. The committee must report its findings no later than August 20. Any recommendations made by the county superintendent must be made available by the district for public inspection. The law does not provide for conditional approvals;; budgets must be either approved or disapproved. No later than August 20, the county superintendent must notify the Superintendent of Public Instruction of all school districts whose budget has been disapproved.

For all dual budget options and for single and dual budget option districts whose budgets

have been disapproved, the district must revise and readopt its budget by September 8, reflecting changes in projected income and expense since July 1, including responding to the county superintendent’s recommendations. The county superintendent must determine if the budget conforms with the standards and criteria applicable to final district budgets and not later than October 8, will approve or disapprove the revised budgets. If the budget is disapproved, the county superintendent will call for the formation of a budget review committee pursuant to Education Code Section 42127.1. Until a district’s budget is approved, the district will operate on the lesser of its proposed budget for the current fiscal year or the last budget adopted and reviewed for the prior fiscal year.

Interim Certifications Regarding Ability to Meet Financial Obligations. Under the

provisions of AB 1200, each school district is required to file interim certifications with the county office of education as to its ability to meet its financial obligations for the remainder of the then-current fiscal year and, based on current forecasts, for the subsequent two fiscal years. The

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county office of education reviews the certification and issues either a positive, negative or qualified certification. A positive certification is assigned to any school district that will meet its financial obligations for the current fiscal year and subsequent two fiscal years. A negative certification is assigned to any school district that will be unable to meet its financial obligations for the remainder of the fiscal year or subsequent fiscal year. A qualified certification is assigned to any school district that may not meet its financial obligations for the current fiscal year or subsequent two fiscal years.

Under California law, any school district and office of education that has a qualified or

negative certification in any fiscal year may not issue, in that fiscal year or in the next succeeding fiscal year, certificates of participation, tax anticipation notes, revenue bonds or any other debt instruments that do not require the approval of the voters of the district, unless the applicable county superintendent of schools determines that the district’s repayment of indebtedness is probable.

District’s Budget Approval/Disapproval and Certification History. In the past five

years, the District has filed qualified certifications of its financial reports on both the First Interim and Second Interim Reports for fiscal year 2011-12, the Second Interim Report for fiscal year 2012-13, and the First Interim Report for fiscal year 2013-14. Since then, the District has not filed qualified or negative certifications of its financial reports. The District’s most recent interim report, the Second Interim for fiscal year 2015-16, received a positive certification, and its fiscal year 2016-17 Budget was approved by the County Superintendent.

Copies of the District’s budget, interim reports and certifications may be obtained upon request from the District Office at 1936 Carlotta Drive, Concord, California 94519. The District may impose charges for copying, mailing and handling.

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District’s 2015-16 and 2016-17 General Fund. The following table shows the unaudited actual figures for fiscal year 2015-16 and the 2016-17 adopted budget. COMPARISON OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (1)

Fiscal Years 2015-16 (Unaudited Actuals) Fiscal Year 2016-17 (Adopted Budget) Mt. Diablo Unified School District

Revenues

Unaudited Actuals 2015-16

Adopted Budget 2016-17

LCFF Sources $249,723,999 $261,164,252 Federal revenues 18,817,139 15,881,080 Other state revenues 60,472,797 36,869,399 Other local revenues 15,590,911 9,039,281 Total Revenues 344,604,848 322,954,012 Expenditures Certificated salaries 142,138,104 149,488,080 Classified salaries 46,718,126 47,647,594 Employee benefits 70,751,927 70,585,940 Books and supplies 17,778,315 25,430,945 Contract services & operating exp. 38,185,961 35,371,134 Capital outlay 2,011,108 2,597,167 Other outgo (excluding indirect costs) 2,934,233 2,863,076 Other outgo – transfers of indirect costs (587,437) (573,222) Total expenditures 317,930,340 333,410,714 Excess of revenues over/(under) expenditures 26,674,508 (10,456,702) Other financing sources (Uses) Operating transfers in -- -- Operating transfers out (175,156) -- Total other financing sources (uses) (175,156) -- Net change in fund balance 26,499,352 (10,456,7020 Fund balance, July 1(2) 71,521,400 98,020,752 Fund balance, June 30 $98,020,752 $87,564,050 (1) Totals may not add due to rounding. (2) Unaudited actuals beginning balance does not correspond directly with audited financing ending balances show in the previous table, because the estimated financials include in the ending balance all governmental funds, including reserves, which the unaudited actuals, budget, and interim reports account for those funds separately. Source: Mt. Diablo Unified School District 2016-17 Adopted Budget and Fiscal Year 2015-16 Unaudited Actual Report.

District Reserves. The District is required to maintain a reserve for economic

uncertainties at least equal to five percent of general fund expenditures. The District continues to meet this requirement.

In connection with legislation adopted in connection with the State’s fiscal year 2014-

15 Budget (“SB 858”), the Education Code was amended to provide that, beginning in fiscal year 2015-16, if a district’s proposed budget includes a local reserve above the minimum recommended level, the governing board must provide the information for review at the annual public hearing on its proposed budget. In addition, SB 858 included a provision, which became effective upon the passage of Proposition 2 at the November 4, 2014 statewide election, which

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limits the amount of reserves which may be maintained at the District level. Specifically, the legislation, among other things, enacted Education Code Section 42127.01, which became operative December 15, 2014, and provides that in any fiscal year immediately after a fiscal year in which a transfer is made to the State’s Public School System Stabilization Account (the Proposition 98 reserve), a school district may not adopt a budget that contains a reserve for economic uncertainties in excess of twice the applicable minimum recommended reserve for economic uncertainties established by the State Board (for school districts with ADA over 400,000, the limit is three times the amount). Exemptions can be granted by the County Superintendent under certain circumstances.

In August of 2015, Senate Bill 799 (“SB 799”) was introduced into the State Senate in

response to SB 858 proposing reforms to the reserve cap. SB 799 proposes a cap on unassigned reserves and special reserves for other than capital outlay of seventeen percent, with exemptions from the cap for school districts with less than 2,500 average daily attendance and basic aid districts.

The District cannot predict how SB 858 or SB 799, if enacted, will impact its reserves

and future spending.

Attendance - Revenue Limit and LCFF Funding As described herein, prior to fiscal year 2013-14, school districts in California derived

most State funding based on a formula which considered a revenue limit per unit of average daily attendance (“ADA”). With the implementation of the LCFF, commencing in fiscal year 2013-14, school districts receive base funding based on ADA, and may also be entitled to supplemental funding, concentration grants and funding based on an economic recovery target. The following table sets forth LCFF funding for the District for fiscal year 2014-15 through 2016-17 (Budgeted).

AVERAGE DAILY ATTENDANCE AND LCFF

Mt. Diablo Unified School District ADA, Enrollment and Target Student Percentages (LCFF Implemented)

Fiscal Years 2013-14 through 2016-17 (Budgeted)

Fiscal Year ADA

LCFF “Phase-In” Entitlement per

ADA(1)(2) 2013-14 30,529 $6,692 2014-15 30,503 7,291 2015-16 31,011 8,051 2016-17(1) 30,466 8,572

(1) Budgeted. (2) Average across grade spans. Source: The District.

The District’s unduplicated count for purposes of determining funding under LCFF is

approximately 49 percent of students. The District receives supplemental funding based on this percentage. The District does not qualify for concentration grant funding which applies to districts with an unduplicated count above 55 percent.

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Revenue Sources The District categorizes its general fund revenues into four sources, being LCFF,

Federal Revenues, Other State Revenues and Local Revenues. Each of these revenue sources is described below.

LCFF Sources. District funding is provided by a mix of (1) local property taxes and (2)

State apportionments of funding under the LCFF. Generally, the State apportionments will amount to the difference between the District's LCFF funding entitlement and its local property tax revenues.

Beginning in fiscal year 1978-79, Proposition 13 and its implementing legislation

provided for each county to levy (except for levies to support prior voter-approved indebtedness) and collect all property taxes, and prescribed how levies on county-wide property values are to be shared with local taxing entities within each county.

The principal component of local revenues is the school district’s property tax revenues,

i.e., the district’s share of the local 1% property tax, received pursuant to Sections 75 and following and Sections 95 and following of the California Revenue and Taxation Code. Education Code Section 42238(h) itemizes the local revenues that are counted towards the base revenue limit before calculating how much the State must provide in equalization aid. Historically, the more local property taxes a district received, the less State equalization aid it is entitled to.

Federal Revenues. The federal government provides funding for several District

programs, including special education programs, programs under No Child Left Behind, the Individuals With Disabilities Education Act, and specialized programs such as Drug Free Schools.

Other State Revenues. As discussed above, the District receives State apportionment

of basic and equalization aid in an amount equal to the difference between the District's revenue limit and its property tax revenues. In addition to such apportionment revenue, the District receives other State revenues.

The District receives State aid from the California State Lottery (the "Lottery"), which

was established by a constitutional amendment approved in the November 1984 general election. Lottery revenues must be used for the education of students and cannot be used for non-instructional purposes such as real property acquisition, facility construction, or the financing of research. Moreover, State Proposition 20 approved in March 2000 requires that 50% of the increase in Lottery revenues over fiscal year 1997-98 levels must be restricted to use on instruction material.

For additional discussion of State aid to school districts, see “-State Funding of

Education.” Other Local Revenues. In addition to local property taxes, the District receives

additional local revenues from items such as interest earnings and other local sources.

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District Retirement Systems Qualified employees of the District are covered under multiple-employer defined benefit

pension plans maintained by agencies of the State. Certificated employees are members of the State Teachers’ Retirement System (“STRS”) and classified employees are members of the Public Employees’ Retirement System (“PERS”). Both STRS and PERS are operated on a Statewide basis. The information set forth below regarding the STRS and PERS programs, other than the information provided by the District regarding its annual contributions thereto, has been obtained from publicly available sources which are believed to be reliable but are not guaranteed as to accuracy or completeness, and should not to be construed as a representation by either the District or the Underwriter.

Implementation of GASB Nos. 68 and 71. Commencing with fiscal year ended June

30, 2015, the District implemented the provisions of GASB Statement Nos. 68 and 71 which require certain new pension disclosures in the notes to its audited financial statements commencing with the audit for fiscal year 2014-15. Statement No. 68 generally requires the District to recognize its proportionate share of the unfunded pension obligation for STRS and PERS by recognizing a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. As a result of the implementation of GASB Statement Nos. 68 and 71, the District was required to reflected a restatement of its beginning net position as of July 1, 2014. See “APPENDIX A - Audited Financial Statements of the District For Fiscal Year Ending June 30, 2015.”

STRS. All full-time certificated employees participate in STRS, a cost-sharing, multiple-

employer contributory public employee retirement system. STRS provides retirement, disability and survivor benefits to plan members and beneficiaries under a defined benefit program. Benefit provisions and contribution amounts are established by State statutes, as legislatively amended. The program is funded through a combination of investment earnings and statutorily set contributions from three sources: employees, employers and the State. The District’s employer contributions to STRS for recent fiscal years are set forth in the following table.

STRS EMPLOYER CONTRIBUTIONS Fiscal Years 2011-12 through 2016-17 Mt. Diablo Unified School District

Fiscal Year Amount 2011-12 $10,688,838 2012-13 10,277,437 2013-14 10,220,659 2014-15 18,725,190 2015-16(1) 22,871,270 2016-17(2) 18,452,969

(1) Unaudited Actuals. (2) Budgeted. Source: Mt. Diablo Unified School District 2016-17 Adopted Budget.

Historically, employee, employer and State contribution rates did not vary annually to

account for funding shortfalls or surpluses in the STRS plan. In recent years, the combination of investment earnings and statutory contributions were not sufficient to pay actuarially required amounts. As a result, the STRS defined benefit program showed an estimated unfunded

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actuarial liability of approximately $76.2 billion as of June 30, 2015 (the date of the last actuarial valuation). In connection with the State’s adoption of its fiscal year 2014-15 Budget, the Governor signed into law Assembly Bill 1469 (“AB 1469”), which represents a legislative effort to address the unfunded liabilities of the STRS pension plan. AB 1469 addressed the funding gap by increasing contributions by employees, employers and the State. In particular, employer contribution rates are scheduled to increase through at least fiscal year 2020-21, from a contribution rate of 8.25% in fiscal year 2013-14 to 19.1% in fiscal year 2020-21. Thereafter, employer contribution rates will be determined by the STRS board to reflect the contribution required to eliminate unfunded liabilities by June 30, 2046.

The District’s employer contribution rates for fiscal years 2014-15 and 2015-16 were

8.88% and 10.73%, respectively. Projected employer contribution rates for school districts (including the District) for fiscal year 2016-17 through fiscal year 2020-21 are set forth in the following table.

PROJECTED EMPLOYER CONTRIBUTION RATES (STRS)

Fiscal Years 2016-17 through 2020-21

Fiscal Year Projected Employer Contribution Rate(1)

2016-17 12.58% 2017-18 14.43 2018-19 16.28 2019-20 18.13 2020-21 19.10

(1) Expressed as a percentage of covered payroll. Source: AB 1469

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PERS. All full-time and some part-time classified employees participate in PERS, an agent multiple-employer contributory public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State. PERS provides retirement, disability, and death benefits to plan members and beneficiaries. The District is part of a cost-sharing pool within PERS known as the “Schools Pool.” Benefit provisions are established by State statutes, as legislatively amended. Contributions to PERS are made by employers and employees. Each fiscal year, the District is required to contribute an amount based on an actuarially determined employer rate. The District’s employer contributions to PERS for recent fiscal years are set forth in the following table.

PERS EMPLOYER CONTRIBUTIONS Fiscal Years 2011-12 through 2016-17 Mt. Diablo Unified School District

Fiscal Year Amount 2011-12 $4,529,773 2012-13 4,598,176 2013-14 4,740,461 2014-15 5,327,217 2015-16(1) 5,047,422 2016-17(2) 6,477,584

(1) Unaudited Actuals. (2) Budgeted. Source: Mt. Diablo Unified School District 2016-17 Adopted Budget.

Like the STRS program, the PERS program has experienced an unfunded liability in

recent years. The PERS unfunded liability, on a market value of assets basis, was approximately $16.5 billion as of June 30, 2015 (the date of the last actuarial valuation). To address this issue, the PERS board has taken a number of actions. In April 2013, for example, the PERS board approved changes to the PERS amortization and smoothing policy intended to reduce volatility in employer contribution rates. In addition, in April 2014, PERS set new contribution rates, reflecting new demographic assumptions and other changes in actuarial assumptions. The new rates and underlying assumptions, which are aimed at eliminating the unfunded liability of PERS in approximately 30 years, will be implemented for school districts beginning in fiscal year 2016-17, with the costs spread over 20 years and the increases phased in over the first five years.

The District’s employer contribution rates for fiscal years 2014-15 and 2015-16 were

11.771% and 11.847%, respectively. Projected employer contribution rates for school districts (including the District) for fiscal year 2016-17 through fiscal year 2020-21 are set forth in the following table.

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PROJECTED EMPLOYER CONTRIBUTION RATES (PERS) Fiscal Years 2016-17 through 2020-21(1)

Fiscal Year Projected Employer Contribution Rate(2)

2016-17 13.888% 2017-18 15.500 2018-19 17.100 2019-20 18.600 2020-21 19.800

(1) Rates were estimated by PERS in 2016. The PERS board is expected to approve official employer contribution rates for each fiscal year shown during the immediately preceding fiscal year. (2) Expressed as a percentage of covered payroll. Source: PERS

California Public Employees’ Pension Reform Act of 2013. On September 12, 2012,

the Governor signed into law the California Public Employees’ Pension Reform Act of 2013 (“PEPRA”), which impacted various aspects of public retirement systems in the State, including the STRS and PERS programs. In general, PEPRA (i) increased the retirement age for public employees depending on job function, (ii) capped the annual pension benefit payouts for public employees hired after January 1, 2013, (iii) required public employees hired after January 1, 2013 to pay at least 50% of the costs of their pension benefits (as described in more detail below), (iv) required final compensation for public employees hired after January 1, 2013 to be determined based on the highest average annual pensionable compensation earned over a period of at least 36 consecutive months, and (v) attempted to address other perceived abuses in the public retirement systems in the State. PEPRA applies to all public employee retirement systems in the State, except the retirement systems of the University of California, and charter cities and charter counties whose pension plans are not governed by State law. PEPRA’s provisions went into effect on January 1, 2013 with respect to new State, school, and city and local agency employees hired on or after that date;; existing employees who are members of employee associations, including employee associations of the District, have a five-year window to negotiate compliance with PEPRA through collective bargaining.

PERS has predicted that the impact of PEPRA on employees and employers, including

the District and other employers in the PERS system, will vary, based on each employer’s current level of benefits. As a result of the implementation of PEPRA, new members must pay at least 50% of the normal costs of the plan, which can fluctuate from year to year. To the extent that the new formulas lower retirement benefits, employer contribution rates could decrease over time as current employees retire and employees subject to the new formulas make up a larger percentage of the workforce. This change would, in some circumstances, result in a lower retirement benefit for employees than they currently earn.

With respect to the STRS pension program, employees hired after January 1, 2013 will

pay the greater of either (1) fifty percent of the normal cost of their retirement plan, rounded to the nearest one-quarter percent, or (2) the contribution rate paid by then-current members (i.e., employees in the STRS plan as of January 1, 2013). The member contribution rate could be increased from this level through collective bargaining or may be adjusted based on other factors. Employers will pay at least the normal cost rate, after subtracting the member’s contribution.

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The District is unable to predict the amount of future contributions it will have to make to PERS and STRS as a result of the implementation of PEPRA, and as a result of negotiations with its employee associations, or, notwithstanding the adoption of PEPRA, resulting from any legislative changes regarding the PERS and STRS employer contributions that may be adopted in the future.

Additional Information. Additional information regarding the District’s retirement

programs is available in Note 11 to the District’s audited financial statements attached hereto as APPENDIX A. In addition, both STRS and PERS issue separate comprehensive financial reports that include financial statements and required supplemental information. Copies of such reports may be obtained from STRS and PERS, respectively, as follows: (i) STRS, P.O. Box 15275, Sacramento, California 95851-0275;; and (ii) PERS, 400 Q Street, Sacramento, California 95811. More information regarding STRS and PERS can also be obtained at their websites, www.calstrs.com and www.calpers.ca.gov, respectively. The references to these Internet websites are shown for reference and convenience only and the information contained on such websites is not incorporated by reference into this Official Statement. The information contained on these websites may not be current and has not been reviewed by the District or the Underwriter for accuracy or completeness.

Other Post-Employment Retirement Benefits

Plan Description. The District administers a defined benefit postemployment plan,

where plan assets may be used only for the payment of benefits to the members of that plan. The plan assets are accounted for in the General Fund. The District provides postemployment healthcare benefits, in accordance with District employment contracts, to all employees who retire from the District and meet the age and service requirements for eligibility. The District offers subsidized health insurance until age 65.

Contribution Information. The District’s funding policy is based on the projected pay-

as-you-go financing requirements, with additional amounts to prefund benefits as determined annually by the governing board. For fiscal year 2014-15, the District contributed $4,813,524.

Annual OPEB Cost and Net OPEB Obligation. In July 2004, the Governmental

Accounting Standards Board (“GASB”) issued GASB No. 45, “Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than Pensions”. This statement requires local governmental employers who provide other post employment benefits (“OPEB”) as part of the total compensation offered to employees to recognize the expense and related liabilities in the government-wise financial statements and net assets and activities. GASB No. 45 establishes standards for the measurement, recognition, and display of OPEB expenses and related liabilities, note disclosures, and, if applicable, required supplementary information in the financial reports.

The District’s annual OPEB cost is calculated based on the annual required contribution

of the employer (the “ARC”), an amount actuarially determined in accordance with GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the components of the District’s annual OPEB cost for the 2014-15 fiscal year, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation.

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MT. DIABLO UNIFIED SCHOOL DISTRICT Components of OPEB Cost

Fiscal Year 2014-15

Annual required contribution (ARC) $11,433,256 Interest on OPEB asset 1,405,098 Adjustment to annual required contribution (1,597,480) Annual OPEB cost 11,240,874 Contributions made (4,813,524) Increase in net OPEB asset 6,427,350 Net OPEB asset- beginning of year 31,224,393 Net OPEB asset- end of year $37,651,743

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the

plan, and the net OPEB obligation for fiscal year 2014-15 and the preceding two years are as follows:


Net OPEB Obligation Fiscal Years 2012-13 through 2014-15

Fiscal

Year Ended (June 30)

Annual OPEB Cost

% of Annual OPEB Cost Contributed

Net OPEB Obligation (Asset)

2013 $10,600,315 52% $25,342,946 2014 10,947,325 46 31,224,393 2015 11,240,874 43 37,651,743

OPEB Funded Status and Funding Progress. Actuarial valuations of an ongoing plan

involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Actuarially determined amounts are subject to continuous revision as actual results are compared to past expectations and new estimates about the future are formulated. Deviations in any of several factors, such as future interest rates, medical cost inflation, Medicare coverage, and changes in marital status could result in actual costs being less or greater than estimated. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits:

Schedule of OPEB Funding Progress Mt. Diablo Unified School District

Actuarial

Valuation Date

Actuarial Value of Assets

Actuarial Accrued Liability

Unfunded Actuarial Accrued Liability

Funded Ratio

Covered Payroll

UAAL as a % of Covered Payroll

5/1/2008 $ -- $71,018,299 $71,018,299 0% $191,822,548 37% 7/1/2012 -- 95,744,443 95,744,443 0 174,900,000 55 7/1/2014 -- 101,535,198 101,535,198 0 171,978,831 59

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Long-Term Debt Summary of Long-Term Debt. The District has never defaulted on the payment of

principal or interest on any of its long-term indebtedness. The following table summarizes the District's general obligation bond debt, which is currently outstanding.


Schedule of Long Term General Obligation Debt

Issue

Date Issued

Original Amount Amount Outstanding October 1, 2016

2002 Authorization Series 2011 Refunding Bonds 06/21/2011 $37,790,000.00 $27,050,000.00 Series B Refunding Bonds 12/29/2011 43,700,000.00 34,170,000.00 Series B-2 Refunding Bonds 04/05/2012 40,540,000.00 39,955,000.00 Series C Refunding Bonds 04/10/2013 54,015,000.00 51,100,000.00

2010 Authorization Series 2010, A Bonds 08/30/2010 $50,456,475.00 $ 50,428,614.75 Series 2010, B Bonds 08/30/2010 59,540,000.00 51,455,000.00 Series 2011, C Bonds 04/12/2011 3,865,000.00 3,860,000.00 Series 2011, D Bonds 04/12/2011 7,133,581.55 6,656,818.45 Series 2012, E Bonds 06/20/2012 149,995,000.00 136,650,000.00 Series 2015, F Bonds 07/15/2015 38,500,000.00 30,965,000.00 Totals $485,535,056.55 $432,290,433.20 Construction Loan. In February 2003, the Redevelopment Agency of the City of Pittsburg made an interest-free loan of $6,178,936 to the District. The loan is to be used for the construction of an elementary school within the City of Pittsburg. Beginning June 1, 2005, the District pays 24% of all impact fees collected by the District in the City of Pittsburg after January 1, 2005. The District will continue to make payments equivalent to 24% of impact fees collected in the City every six months on June 1 and January 1 until June 1, 2040, or until the loan is paid off, whichever occurs first. The balance at June 30, 2015, was $4,545,225.

Capital Leases. The District leases school buses having a value $2,393,976 under

agreements which provides for title to pass upon expiration of the lease period. Future yearly payments on capitalized lease obligations are as follows:

Fiscal Year Payment 2015-2016 $351,731 2016-2017 351,731 2017-2018 252,150 2018-2019 152,568 2019-2020 152,568

Total Payments 1,260,748 Less amount representing interest (70,467)

Total $1,190,281

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Risk Management

The District participates in a joint ventures under joint powers agreements (“JPAs”) with

CSAC Excess Insurance Authority (“CSAC-EIA”), the Schools’ Self-Insurance of Contra Costa county (“SSICCC”), and the School Project for Utility Rate Reduction (“SPURR”). The relationship between the District and the JPAs are such that the JPAs are not component unit of the District for financial reporting purposes.

The JPAs provide property and liability insurance coverage as well as health and welfare

benefits coverage. The JPAs are governed by a board consisting of a representative from each member district. The governing board controls the operations of its JPAs independent of any influence by the member districts beyond their representation on the governing board. Each member district pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to its participation in the JPAs.

Investment of District Funds

In accordance with Government Code Section 53600 et seq., the Contra Costa County

Treasurer manages funds deposited with it by the District. The County is required to invest such funds in accordance with California Government Code Sections 53601 et seq. In addition, counties are required to establish their own investment policies which may impose limitations beyond those required by the Government Code.

Effect of State Budget on Revenues

Public school districts in California are dependent on revenues from the State for a large

portion of their operating budgets. California school districts generally receive the majority of their operating revenues from various State sources. The primary source of funding for school districts is LCFF funding, which is derived from a combination of State funds and local property taxes (see “—State Funding of Education – Revenue Limits” above). State funds typically make up the majority of a district’s LCFF funding. School districts also receive funding from the State for some specialized programs such as special education.

The availability of State funds for public education is a function of constitutional

provisions affecting school district revenues and expenditures (see “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS” below), the condition of the State economy (which affects total revenue available to the State general fund), and the annual State budget process. The District cannot predict how education funding may further be changed in the future, or the state of the economy which in turn can impact the amounts of funds available from the State for education funding. See “STATE FUNDING OF EDUCATION;; RECENT STATE BUDGETS” on the following page.

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STATE FUNDING OF EDUCATION;; RECENT STATE BUDGETS State Funding of Education

General. The State requires that from all State revenues there first shall be set apart

the moneys to be applied for support of the public school system and public institutions of higher education. Public school districts in California are dependent on revenues from the State for a large portion of their operating budgets. California school districts receive an average of about 55% of their operating revenues from various State sources. The primary source of funding for school districts is funding under the LCFF, which is a combination of State funds and local property taxes (see “DISTRICT FINANCIAL INFORMATION – Education Funding Generally” above). State funds typically make up the majority of a district’s LCFF entitlement.

The availability of State funds for public education is a function of constitutional

provisions affecting school district revenues and expenditures (see “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS” below), the condition of the State economy (which affects total revenue available to the State general fund), and the annual State budget process. Decreases in State revenues may significantly affect appropriations made by the legislature to school districts.

The following information concerning the State’s budgets for the current and most recent

preceding years has been compiled from publicly-available information provided by the State. Neither the District, the County, nor the Underwriter is responsible for the information relating to the State’s budgets provided in this section. Further information is available from the Public Finance Division of the State Treasurer’s Office.

The Budget Process. The State’s fiscal year begins on July 1 and ends on June 30.

The annual budget is proposed by the Governor by January 10 of each year for the next fiscal year (the “Governor’s Budget”). Under State law, the annual proposed Governor’s Budget cannot provide for projected expenditures in excess of projected revenues and balances available from prior fiscal years. Following the submission of the Governor’s Budget, the Legislature takes up the proposal.

Under the State Constitution, money may be drawn from the State Treasury only through

an appropriation made by law. The primary source of the annual expenditure authorizations is the Budget Act as approved by the Legislature and signed by the Governor. The Budget Act must be approved by a majority vote of each house of the Legislature. The Governor may reduce or eliminate specific line items in the Budget Act or any other appropriations bill without vetoing the entire bill. Such individual line-item vetoes are subject to override by a two-thirds majority vote of each House of the Legislature.

Appropriations also may be included in legislation other than the Budget Act. Bills

containing appropriations (including for K-14 education) must be approved by a majority vote in each house of the Legislature, unless such appropriations require tax increases, in which case they must be approved by a two-thirds vote of each house of the Legislature, and be signed by the Governor. Continuing appropriations, available without regard to fiscal year, may also be provided by statute or the State Constitution.

Funds necessary to meet an appropriation need not be in the State Treasury at the time

such appropriation is enacted;; revenues may be appropriated in anticipation of their receipt.

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Recent State Budgets Certain information about the State budgeting process and the State Budget is available

through several State of California sources. A convenient source of information is the State’s website, where recent official statements for State bonds are posted. The references to internet websites shown below are shown for reference and convenience only, the information contained within the websites may not be current and has not been reviewed by the District and is not incorporated herein by reference.

• The California Department of Finance’s Internet home page at

www.dof.ca.gov, under the heading “California Budget”, includes the text of proposed and adopted State Budgets.

• The State Legislative Analyst’s Office prepares analyses of the proposed and

adopted State budgets. The analyses are accessible on the Legislative Analyst’s Internet home page at www.lao.ca.gov under the heading “Subject Area – Budget (State)”.

Prior Years’ Budgeting Techniques. Declining revenues and fiscal difficulties which

arose in the State commencing in fiscal year 2008-09 led the State to undertake a number of budgeting strategies, which had subsequent impacts on local agencies within the State. These techniques included the issuance of IOUs in lieu of warrants (checks), the enactment of statutes deferring amounts owed to public schools, until a later date in the fiscal year, or even into the following fiscal year (known as statutory deferrals), trigger reductions, which were budget cutting measures which were implemented or could have been implemented if certain State budgeting goals were not met, among others, and the dissolution of local redevelopment agencies in part to make available additional funding for local agencies. Although the current fiscal year State Budget is balanced and projects a balanced budget for the foreseeable future, largely attributable to the additional revenues generated due to the passage of Proposition 30 at the November 2, 2010 statewide election, there can be no certainty that budget-cutting strategies such as those used in recent years will not be used in the future should the State Budget again be stressed and if projections included in such budget do not materialize.

2013-14 State Budget: Significant Change in Education Funding. As described

herein under the caption “-Education Funding Generally,” the 2013-14 State Budget and its related implementing legislation enacted significant reforms to the State’s system of K-12 education finance with the enactment of the LCFF. Significant reforms such as the LCFF and other changes in law may have significant impacts on the District’s finances.

2016-17 Adopted State Budget

On June 27, 2016, the Governor signed the 2016-17 State Budget (the “2016-17 State Budget”) into law with an effective date of July 1, 2016. The 2016-17 State Budget package calls for $122.5 billion in general fund spending and $44.6 billion in special fund spending, along with $3.6 billion in bond spending. The 2016-17 State Budget includes more money for higher education, repeals a cap on welfare payments, raises rates for child care providers and puts an additional $3.3 billion into the State’s rainy-day reserve, including an optional $2 billion shift to protect against a future economic downturn. The 2016-17 State Budget establishes a multiyear plan that is balanced and that, among other items, provides for the following:

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• contributions to both State budget reserves: the Special Fund for Economic Uncertainties, the State’s discretionary reserve, and the Budget Stabilization Account, the state’s constitutional rainy day fund, raising such reserves to $6.7 billion;;

• an increase in funding for K-12 schools of more than $2.9 billion

(representing an increase of 5.4 percent over the LCFF funding level for fiscal year 2014-15 and bringing the LCFF level implementation to 96% complete);;

• an increase of more than $1.3 billion in one-time discretionary general funds

for school districts, charter schools and county offices of education to use at local discretion (for activities such as deferred maintenance, professional development, induction for beginning teachers, instructional materials, technology, and the implementation of new educational standards);;

• a $1.6 billion early education block grant by combining three existing

programs to promote local flexibility, focusing on disadvantaged students and improved accountability;;

• $807 million for Statewide deferred maintenance at levees, state parks,

universities, community colleges, prisons, State hospitals, and other State facilities;;

• a $3.1 billion cap-and-trade expenditure plan to reduce greenhouse gas

emissions;;

• over $2 billion in funds for various infrastructure improvements, $688 million for critical deferred maintenance at levees, State parks, universities, community colleges, prisons, state hospitals, and other State facilities;;

• a $1.2 billion pay-down of debt and liabilities from Proposition 2 funds;; and • $710 million to pay for the costs of wildfires and for other effects of the

drought. The execution of the 2016-17 State Budget may be affected by numerous factors,

including but not limited to: (i) shifts of costs from the federal government to the State, (ii) national, State and international economic conditions, (iii) litigation risk associated with proposed spending reductions, (iv) rising health care costs and (v) other factors, all or any of which could cause the revenue and spending projections in the 2016-17 State Budget to be unattainable. The District cannot predict the impact that the 2016-17 State Budget, or subsequent budgets, will have on its own finances and operations. Additionally, the District cannot predict the accuracy of any projections made in the 2016-17 State Budget.

Availability of 2016-17 State Budget. The complete 2016-17 State Budget is available

from the California Department of Finance website at www.dof.ca.gov. The District can take no responsibility for the continued accuracy of this internet address or for the accuracy, completeness or timeliness of information posted there, and such information is not incorporated in this Official Statement by such reference. The information referred to above should not be relied upon in making an investment decision with respect to the Series G Bonds.

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Uncertainty Regarding Future State Budgets. The District cannot predict what

actions will be taken in future years by the State Legislature and the Governor to address the State’s current or future changing revenues and expenditures. Future State budgets will be affected by national and state economic conditions and other factors over which the District has no control. The District cannot predict what impact any future budget proposals will have on the financial condition of the District. To the extent that the State budget process results in reduced revenues to the District, the District will be required to make adjustments to its budgets.

Disclaimer Regarding State Budgets. The State has not entered into any contractual

commitment with the District, the County, or the Owners of the Series G Bonds to provide State budget information to the District or the owners of the Series G Bonds. Although they believe the State sources of information listed above are reliable, neither the District nor the Underwriters assume any responsibility for the accuracy of the State Budget information set forth or referred to in this Official Statement or incorporated herein. However, the Series G Bonds are secured by ad valorem taxes levied and collected on taxable property in the District, without limit as to rate or amount, and are not secured by a pledge of revenues of the District or its general fund.

Legal Challenges to State Funding of Education

The application of Proposition 98 and other statutory regulations has been the subject of

various legal challenges in recent years, and is likely to be further challenged in the future. For a discussion of how the provisions of Proposition 98 have been applied to school funding see “- State Funding of Education" and "-Recent State Budgets” above.

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CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS

Principal of and interest on the Bonds are payable from the proceeds of an ad valorem

tax levied by the County for the payment thereof. Articles XIIIA, XIIIB, XIIIC, and XIIID of the State Constitution, Propositions 62, 98, 111, 187 and 218, and certain other provisions of law discussed below, are included in this section to describe the potential effect of these Constitutional and statutory measures on the ability of the District to levy taxes and spend tax proceeds for operating and other purposes, and it should not be inferred from the inclusion of such materials that these laws impose any limitation on the ability of the District to levy taxes for payment of the Bonds. The tax levied by the County for payment of the Bonds was approved by the District's voters in compliance with Article XIIIA and all applicable laws.

Constitutionally Required Funding of Education

The State Constitution requires that from all State revenues, there shall be first set apart

the moneys to be applied by the State for the support of the public school system and public institutions of higher education. School districts receive a significant portion of their funding from State appropriations. As a result, decreases and increases in State revenues can significantly affect appropriations made by the State Legislature to school districts.

Article XIIIA of the California Constitution

Basic Property Tax Levy. On June 6, 1978, California voters approved Proposition 13 ("Proposition 13"), which added Article XIIIA to the State Constitution ("Article XIIIA"). Article XIIIA limits the amount of any ad valorem tax on real property to 1% of the full cash value thereof, except that additional ad valorem taxes may be levied to pay debt service on (i) indebtedness approved by the voters prior to July 1, 1978, (ii) (as a result of an amendment to Article XIIIA approved by State voters on June 3, 1986) on bonded indebtedness for the acquisition or improvement of real property which has been approved on or after July 1, 1978 by two-thirds of the voters on such indebtedness (which provided the authority for the issuance of the Refunded Bonds), and (iii) (as a result of an amendment to Article XIIIA approved by State voters on November 7, 2000) bonded indebtedness incurred by a school district or community college district for the construction, reconstruction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities, approved by 55% of the voters of the district, but only if certain accountability measures are included in the proposition. Article XIIIA defines full cash value to mean "the county assessor’s valuation of real property as shown on the 1975-76 tax bill under full cash value, or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership have occurred after the 1975 assessment". This full cash value may be increased at a rate not to exceed 2% per year to account for inflation.

Article XIIIA has subsequently been amended to permit reduction of the "full cash value"

base in the event of declining property values caused by damage, destruction or other factors, to provide that there would be no increase in the "full cash value" base in the event of reconstruction of property damaged or destroyed in a disaster and in other minor or technical ways.

Legislation Implementing Article XIIIA. Legislation has been enacted and amended a

number of times since 1978 to implement Article XIIIA. Under current law, local agencies are no longer permitted to levy directly any property tax (except to pay voter-approved indebtedness).

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The 1% property tax is automatically levied by the county and distributed according to a formula among taxing agencies. The formula apportions the tax roughly in proportion to the relative shares of taxes levied prior to 1979.

Increases of assessed valuation resulting from reappraisals of property due to new

construction, change in ownership or from the annual adjustment not to exceed 2% are allocated among the various jurisdictions in the “taxing area” based upon their respective “situs.” Any such allocation made to a local agency continues as part of its allocation in future years.

Inflationary Adjustment of Assessed Valuation. As described above, the assessed

value of a property may be increased at a rate not to exceed 2% per year to account for inflation. On December 27, 2001, the Orange County Superior Court, in County of Orange v. Orange County Assessment Appeals Board No. 3, held that where a home’s taxable value did not increase for two years, due to a flat real estate market, the Orange County assessor violated the 2% inflation adjustment provision of Article XIIIA, when the assessor tried to "recapture" the tax value of the property by increasing its assessed value by 4% in a single year. The assessors in most California counties, including the County, use a similar methodology in raising the taxable values of property beyond 2% in a single year. The State Board of Equalization has approved this methodology for increasing assessed values. On appeal, the Appellate Court held that the trial court erred in ruling that assessments are always limited to no more than 2% of the previous year’s assessment. On May 10, 2004 a petition for review was filed with the California Supreme Court. The petition has been denied by the California Supreme Court. As a result of this litigation, the “recapture” provision described above may continue to be employed in determining the full cash value of property for property tax purposes.

Article XIIIB of the California Constitution

Article XIIIB (“Article XIIIB”) of the State Constitution, as subsequently amended by Propositions 98 and 111, respectively, limits the annual appropriations of the State and of any city, county, school district, authority or other political subdivision of the State to the level of appropriations of the particular governmental entity for the prior fiscal year, as adjusted for changes in the cost of living and in population and for transfers in the financial responsibility for providing services and for certain declared emergencies. For fiscal years beginning on or after July 1, 1990, the appropriations limit of each entity of government shall be the appropriations limit for the 1986-87 fiscal year adjusted for the changes made from that fiscal year under the provisions of Article XIIIB, as amended.

The appropriations of an entity of local government subject to Article XIIIB limitations

include the proceeds of taxes levied by or for that entity and the proceeds of certain state subventions to that entity. “Proceeds of taxes” include, but are not limited to, all tax revenues and the proceeds to the entity from (a) regulatory licenses, user charges and user fees (but only to the extent that these proceeds exceed the reasonable costs in providing the regulation, product or service), and (b) the investment of tax revenues.

Appropriations subject to limitation do not include (a) refunds of taxes, (b) appropriations

for debt service, (c) appropriations required to comply with certain mandates of the courts or the federal government, (d) appropriations of certain special districts, (e) appropriations for all qualified capital outlay projects as defined by the legislature, (f) appropriations derived from certain fuel and vehicle taxes and (g) appropriations derived from certain taxes on tobacco products.

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Article XIIIB includes a requirement that all revenues received by an entity of government other than the State in a fiscal year and in the fiscal year immediately following it in excess of the amount permitted to be appropriated during that fiscal year and the fiscal year immediately following it shall be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years. However, in the event that a school district’s revenues exceed its spending limit, the district may in any fiscal year increase its appropriations limit to equal its spending by borrowing appropriations limit from the State.

Article XIIIB also includes a requirement that 50% of all revenues received by the State

in a fiscal year and in the fiscal year immediately following it in excess of the amount permitted to be appropriated during that fiscal year and the fiscal year immediately following it shall be transferred and allocated to the State School Fund under Section 8.5 of Article XVI of the State Constitution. Unitary Property

Some amount of property tax revenue of the District is derived from utility property which is considered part of a utility system with components located in many taxing jurisdictions (“unitary property”). Under the State Constitution, such property is assessed by the State Board of Equalization (“SBE”) as part of a “going concern” rather than as individual pieces of real or personal property. State-assessed unitary and certain other property is allocated to the counties by SBE, taxed at special county-wide rates, and the tax revenues distributed to taxing jurisdictions (including the District) according to statutory formulae generally based on the distribution of taxes in the prior year. Articles XIIIC and XIIID

On November 5, 1996, the voters of the State of California approved Proposition 218, popularly known as the “Right to Vote on Taxes Act.” Proposition 218 added to the California Constitution Articles XIIIC and XIIID (respectively, “Article XIIIC” and “Article XIIID”), which contain a number of provisions affecting the ability of local agencies, including school districts, to levy and collect both existing and future taxes, assessments, fees and charges.

According to the “Title and Summary” of Proposition 218 prepared by the California

Attorney General, Proposition 218 limits “the authority of local governments to impose taxes and property-related assessments, fees and charges.” Among other things, Article XIIIC establishes that every tax is either a “general tax” (imposed for general governmental purposes) or a “special tax” (imposed for specific purposes), prohibits special purpose government agencies such as school districts from levying general taxes, and prohibits any local agency from imposing, extending or increasing any special tax beyond its maximum authorized rate without a two-thirds vote;; and also provides that the initiative power will not be limited in matters of reducing or repealing local taxes, assessments, fees and charges. Article XIIIC further provides that no tax may be assessed on property other than ad valorem property taxes imposed in accordance with Articles XIII and XIIIA of the California Constitution and special taxes approved by a two-thirds vote under Article XIIIA, Section 4.

On November 2, 2010, Proposition 26 was approved by State voters, which amended

Article XIIIC to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” except the following: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or

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granting the privilege;; (2) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product;; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof;; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property;; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law;; (6) a charge imposed as a condition of property development;; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIIID. Proposition 26 provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.

Article XIIID deals with assessments and property-related fees and charges, and

explicitly provides that nothing in Article XIIIC or XIIID will be construed to affect existing laws relating to the imposition of fees or charges as a condition of property development.

While the provisions of Proposition 218 may have an indirect effect on the District, such

as by limiting or reducing the revenues otherwise available to other local governments whose boundaries encompass property located within the District (thereby causing such local governments to reduce service levels and possibly adversely affecting the value of property within the District), the District does not believe that Proposition 218 will directly impact the revenues available to pay Lease Payments and therefore debt service on the Notes.

Proposition 98

On November 8, 1988, California voters approved Proposition 98, a combined initiative constitutional amendment and statute called the “Classroom Instructional Improvement and Accountability Act” (the “Accountability Act”). Certain provisions of the Accountability Act have, however, been modified by Proposition 111, discussed below, the provisions of which became effective on July 1, 1990. The Accountability Act changes State funding of public education below the university level and the operation of the State’s appropriations limit. The Accountability Act guarantees State funding for K-12 school districts and community college districts (hereinafter referred to collectively as “K-14 school districts”) at a level equal to the greater of (a) the same percentage of general fund revenues as the percentage appropriated to such districts in 1986-87, and (b) the amount actually appropriated to such districts from the general fund in the previous fiscal year, adjusted for increases in enrollment and changes in the cost of living. The Accountability Act permits the Legislature to suspend this formula for a one-year period.

The Accountability Act also changes how tax revenues in excess of the State

appropriations limit are distributed. Any excess State tax revenues up to a specified amount would, instead of being returned to taxpayers, be transferred to K-14 school districts. Any such transfer to K-14 school districts would be excluded from the appropriations limit for K-14 school districts and the K-14 school district appropriations limit for the next year would automatically be increased by the amount of such transfer. These additional moneys would enter the base funding calculation for K-14 school districts for subsequent years, creating further pressure on

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other portions of the State budget, particularly if revenues decline in a year following an Article XIIIB surplus. The maximum amount of excess tax revenues which could be transferred to K-14 school districts is 4% of the minimum State spending for education mandated by the Accountability Act.

Proposition 111

On June 5, 1990, the voters approved Proposition 111 (Senate Constitutional Amendment No. 1) called the “Traffic Congestion Relief and Spending Limit Act of 1990” (“Proposition 111”) which further modified Article XIIIB and Sections 8 and 8.5 of Article XVI of the State Constitution with respect to appropriations limitations and school funding priority and allocation.

The most significant provisions of Proposition 111 are summarized as follows: Annual Adjustments to Spending Limit. The annual adjustments to the Article XIIIB

spending limit were liberalized to be more closely linked to the rate of economic growth. Instead of being tied to the Consumer Price Index, the “change in the cost of living” is now measured by the change in California per capita personal income. The definition of “change in population” specifies that a portion of the State’s spending limit is to be adjusted to reflect changes in school attendance.

Treatment of Excess Tax Revenues. “Excess” tax revenues with respect to Article

XIIIB are now determined based on a two-year cycle, so that the State can avoid having to return to taxpayers excess tax revenues in one year if its appropriations in the next fiscal year are under its limit. In addition, the Proposition 98 provision regarding excess tax revenues was modified. After any two-year period, if there are excess State tax revenues, 50% of the excess are to be transferred to K-14 school districts with the balance returned to taxpayers;; under prior law, 100% of excess State tax revenues went to K-14 school districts, but only up to a maximum of 4% of the schools’ minimum funding level. Also, reversing prior law, any excess State tax revenues transferred to K-14 school districts are not built into the school districts’ base expenditures for calculating their entitlement for State aid in the next year, and the State’s appropriations limit is not to be increased by this amount.

Exclusions from Spending Limit. Two exceptions were added to the calculation of

appropriations which are subject to the Article XIIIB spending limit. First, there are excluded all appropriations for “qualified capital outlay projects” as defined by the Legislature. Second, there are excluded any increases in gasoline taxes above the 1990 level (then nine cents per gallon), sales and use taxes on such increment in gasoline taxes, and increases in receipts from vehicle weight fees above the levels in effect on January 1, 1990. These latter provisions were necessary to make effective the transportation funding package approved by the Legislature and the Governor, which expected to raise over $15 billion in additional taxes from 1990 through 2000 to fund transportation programs.

Recalculation of Appropriations Limit. The Article XIIIB appropriations limit for each

unit of government, including the State, is to be recalculated beginning in fiscal year 1990-91. It is based on the actual limit for fiscal year 1986-87, adjusted forward to 1990-91 as if Proposition 111 had been in effect.

School Funding Guarantee. There is a complex adjustment in the formula enacted in

Proposition 98 which guarantees K-14 school districts a certain amount of State general fund

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revenues. Under prior law, K-14 school districts were guaranteed the greater of (1) 40.9% of State general fund revenues (the “first test”) or (2) the amount appropriated in the prior year adjusted for changes in the cost of living (measured as in Article XIIIB by reference to per capita personal income) and enrollment (the “second test”). Under Proposition 111, schools will receive the greater of (1) the first test, (2) the second test, or (3) a third test, which will replace the second test in any year when growth in per capita State general fund revenues from the prior year is less than the annual growth in California per capita personal income (the “third test”). Under the third test, schools will receive the amount appropriated in the prior year adjusted for change in enrollment and per capita State general fund revenues, plus an additional small adjustment factor. If the third test is used in any year, the difference between the third test and the second test will become a “credit” to schools which will be paid in future years when State general fund revenue growth exceeds personal income growth.

Proposition 39

On November 7, 2000, California voters approved an amendment (commonly known as

“Proposition 39”) to the California Constitution. This amendment (1) allows school facilities bond measures to be approved by 55 percent (rather than two-thirds) of the voters in local elections and permits property taxes to exceed the current 1 percent limit in order to repay the bonds and (2) changes existing statutory law regarding charter school facilities. As adopted, the constitutional amendments may be changed only with another Statewide vote of the people. The statutory provisions could be changed by a majority vote of both houses of the Legislature and approval by the Governor, but only to further the purposes of the proposition. The local school jurisdictions affected by this proposition are K-12 school districts, community college districts, including the District, and county offices of education. As noted above, the California Constitution previously limited property taxes to 1 percent of the value of property. Prior to the approval of Proposition 39, property taxes could only exceed this limit to pay for (1) any local government debts approved by the voters prior to July 1, 1978 or (2) bonds to acquire or improve real property that receive two-thirds voter approval after July 1, 1978.

The 55% vote requirement authorized by Proposition 39 applies only if the local bond

measure presented to the voters includes: (1) a requirement that the bond funds can be used only for construction, rehabilitation, equipping of school facilities, or the acquisition or lease of real property for school facilities;; (2) a specific list of school projects to be funded and certification that the school board has evaluated safety, class size reduction, and information technology needs in developing the list;; and (3) a requirement that the school board conduct annual, independent financial and performance audits until all bond funds have been spent to ensure that the bond funds have been used only for the projects listed in the measure. Legislation approved in June 2000 places certain limitations on local school bonds to be approved by 55 percent of the voters. These provisions require that the tax rate levied as the result of any single election be no more than $60 (for a unified school district), $30 (for an elementary school district or high school district), or $25 (for a community college district), per $100,000 of taxable property value. These requirements are not part of this proposition and can be changed with a majority vote of both houses of the Legislature and approval by the Governor.

Proposition 30

Guaranteed Local Public Safety Funding, Initiative Constitutional Amendment (also

known as “Proposition 30”), which temporarily increases the State Sales and Use Tax and personal income tax rates on higher incomes. Proposition 30 temporarily imposes an additional

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tax on all retailers, at the rate of 0.25% of gross receipts from the sale of all tangible personal property sold in the State from January 1, 2013 to December 31, 2016. Proposition 30 also imposes an additional excise tax on the storage, use, or other consumption in the State of tangible personal property purchased from a retailer on and after January 1, 2013 and before January 1, 2017. This excise tax will be levied at a rate of 0.25% of the sales price of the property so purchased. For personal income taxes imposed beginning in the taxable year commencing January 1, 2012 and ending December 31, 2018, Proposition 30 increases the marginal personal income tax rate by: (i) 1% for taxable income over $250,000 but less than $300,000 for single filers (over $340,000 but less than $408,000 for joint filers), (ii) 2% for taxable income over $300,000 but less than $500,000 for single filers (over $408,000 but less than $680,000 for joint filers), and (iii) 3% for taxable income over $500,000 for single filers (over $680,000 for joint filers).

The revenues generated from the temporary tax increases will be included in the

calculation of the Proposition 98 minimum funding guarantee for school districts and community college districts. See “Proposition 98” and “Proposition 111” above. From an accounting perspective, the revenues generated from the temporary tax increases will be deposited into the State account created pursuant to Proposition 30 called the Education Protection Account (the “EPA”). Pursuant to Proposition 30, funds in the EPA will be allocated quarterly, with 89% of such funds provided to schools districts and 11% provided to community college districts. The funds will be distributed to school districts and community college districts in the same manner as existing unrestricted per-student funding, except that no school district will receive less than $200 per unit of ADA and no community college district will receive less than $100 per full time equivalent student. The governing board of each school district and community college district is granted sole authority to determine how the moneys received from the EPA are spent, provided that, the appropriate governing board is required to make these spending determinations in open session at a public meeting and such local governing boards are prohibited from using any funds from the EPA for salaries or benefits of administrators or any other administrative costs.

The California Children’s Education and Health Care Protection Act of 2016, also known

as Proposition 55, his a proposed constitutional amendment initiative that has qualified for the November 8, 2016 general election ballot in California. Proposition 55 would extend the increases to personal income tax rates for high-income taxpayers that were approved as part of Proposition 30 through 2030, instead of the scheduled expiration date of December 31, 2018. Tax revenue received under Proposition 55 would be allocated 89% to K-12 schools and 11% to community colleges. The District cannot predict whether Proposition 55 will be approved and become law.

Proposition 1A and Proposition 22

On November 2, 2004, California voters approved Proposition 1A, which amended the State constitution to significantly reduce the State's authority over major local government revenue sources. Under Proposition 1A, the State cannot (i) reduce local sales tax rates or alter the method of allocating the revenue generated by such taxes, (ii) shift property taxes from local governments to schools or community colleges, (iii) change how property tax revenues are shared among local governments without two-thirds approval of both houses of the State Legislature or (iv) decrease Vehicle License Fee revenues without providing local governments with equal replacement funding. Under Proposition 1A, beginning, in 2008-09, the State may shift to schools and community colleges a limited amount of local government property tax revenue if certain conditions are met, including: (i) a proclamation by the Governor that the shift

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is needed due to a severe financial hardship of the State, and (ii) approval of the shift by the State Legislature with a two-thirds vote of both houses. Under such a shift, the State must repay local governments for their property tax losses, with interest, within three years. Proposition 1A does allow the State to approve voluntary exchanges of local sales tax and property tax revenues among local governments within a county. Proposition 1A also amended the State Constitution to require the State to suspend certain State laws creating mandates in any year that the State does not fully reimburse local governments for their costs to comply with the mandates. This provision does not apply to mandates relating to schools or community colleges or to those mandates relating to employee rights.

Proposition 22, a constitutional initiative entitled the “Local Taxpayer, Public Safety, and

Transportation Protection Act of 2010,” approved on November 2, 2010, superseded many of the provisions of Proposition 1A. This initiative amends the State constitution to prohibit the legislature from diverting or shifting revenues that are dedicated to funding services provided by local government or funds dedicated to transportation improvement projects and services. Under this proposition, the State is not allowed to take revenue derived from locally imposed taxes, such as hotel taxes, parcel taxes, utility taxes and sales taxes, and local public transit and transportation funds. Further, in the event that a local governmental agency sues the State alleging a violation of these provisions and wins, then the State must automatically appropriate the funds needed to pay that local government. This Proposition was intended to, among other things, stabilize local government revenue sources by restricting the State’s control over local property taxes. Proposition 22 did not prevent the California State Legislature from dissolving State redevelopment agencies pursuant to AB 1X26, as confirmed by the decision of the California Supreme Court decision in California Redevelopment Association v. Matosantos (2011).

Because Proposition 22 reduces the State’s authority to use or reallocate certain

revenue sources, fees and taxes for State general fund purposes, the State will have to take other actions to balance its budget, such as reducing State spending or increasing State taxes, and school and college districts that receive Proposition 98 or other funding from the State will be more directly dependent upon the State’s general fund.

Future Initiatives

Article XIIIA, Article XIIIB, Article XIIIC and Article XIIID of the California Constitution and Propositions 98, 111, 1A, 22, 26, 30 and 39 were each adopted as measures that qualified for the ballot under the State’s initiative process. From time to time other initiative measures could be adopted further affecting District revenues or the District’s ability to expend revenues. The nature and impact of these measures cannot be anticipated by the District.

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California Senate Bill 222 Senate Bill 222 (“SB 222”) was signed by the California Governor on July 13, 2015 and

became effective on January 1, 2016. SB 222 amended Section 15251 of the California Education Code and added Section 52515 to the California Government Code to provide that voter approved general obligation bonds which are secured by ad valorem tax collections such as the Bonds are secured by a statutory lien on all revenues received pursuant to the levy and collection of the property tax imposed to service those bonds. Said lien shall attach automatically and is valid and binding from the time the bonds are executed and delivered. The lien is enforceable against the issuer, its successors, transferees, and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for any further act. The effect of SB 222 is the treatment of general obligation bonds as secured debt in bankruptcy due to the existence of a statutory lien.

Future Initiatives

Article XIIIA, Article XIIIB, Article XIIIC and Article XIIID of the California Constitution and Propositions 98, 22, 26, 30 and 39 were each adopted as measures that qualified for the ballot under the State’s initiative process. From time to time other initiative measures could be adopted further affecting District revenues or the District’s ability to expend revenues. The nature and impact of these measures cannot be anticipated by the District.

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APPENDIX C

GENERAL INFORMATION ABOUT THE CITY OF CONCORD AND THE COUNTY OF CONTRA COSTA

The Bonds are not a debt of the City of Concord (the “City”) or the County of Contra

Costa (the “County”). The County, including its Board of Supervisors, officers, officials, agents and other employees, are required, only to the extent required by law, to: (i) levy and collect ad valorem taxes for payment of the Bonds in accordance with the law;; and (ii) transmit the proceeds of such taxes to the paying agent for the payment of the principal of and interest on Bonds at the time such payment is due.

General

The County was incorporated in 1850 as one of the original 27 counties of the State,

with the City of Martinez as the County Seat. It is one of the nine counties in the San Francisco-Oakland Bay Area. The County is the ninth most populous county in the State with a population of approximately 1,123,429 as of January 1, 2016.

The County provides services to residents through departments and agencies including

the Departments of Building Inspection, Community Development, Economic & Redevelopment, Airports, Flood Control, Parks, and Road and Transportation. Each city within the County provides for local services such as police, fire, water, and various other services normally associated with municipalities.

Population

Population figures for the cities of Pleasant Hill, Concord, and Walnut Creek, as well as

the population for the County and the State for the last five years are shown in the following table.

CITIES OF PLEASANT HILL, CONCORD AND WALNUT CREEK

COUNTY OF CONTRA COSTA Population Estimates

Year City of

Pleasant Hill City of Concord

City of Walnut Creek

County of Contra Costa

State of California

2012 33,399 124,130 65,954 1,069,977 37,881,357 2013 33,472 125,704 67,225 1,083,340 38,239,207 2014 33,708 126,851 67,954 1,097,172 28,567,459 2015 33,918 128,063 68,652 1,111,143 38,907,642 2016 34,077 129,707 70,018 1,123,429 39,255,883 Source: State of California, Department of Finance, as of January 1.

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Industry and Employment The County is a part of the Oakland-Hayward-Berkeley Metropolitan Division (the

“Oakland-Hayward-Berkeley MD”). The unemployment rate in the Oakland-Hayward-Berkeley Metropolitan Division was 4.9 percent in July 2016, up from a revised 4.8 Percent in June 2016, and below the year-ago estimate of 5.2 percent. This compares with an unadjusted unemployment rate of 5.9 percent for California and 5.1 percent for the nation during the same period. The unemployment rate was 5.0 in the County.

Oakland-Hayward-Berkeley Metropolitan Division

(Alameda and Contra Costa Counties) Annual Average Labor Force and Industry Employment

Calendar Years 2011 through 2015 (March 2015 Benchmark)

2011 2012 2013 2014 2015 Civilian Labor Force [1] 1,307,300 1,315,800 1,336,800 1,346,700 1,374,800 Employment 1,164,300 1,181,900 1,219,100 1,247,700 1,308,100 Unemployment 143,000 133,900 117,800 99,000 66,700 Unemployment Rate 10.9% 10.2% 8.8% 7.3% 4.8% Wage and Salary Employment [2] Agriculture 1,400 1,500 1,500 1,500 1,200 Mining and Logging 1,100 1,000 900 900 900 Construction 47,500 47,600 52,000 56,400 62,400 Manufacturing 78,600 79,700 79,900 80,100 86,600 Wholesale Trade 41,900 42,200 43,700 45,200 47,600 Retail Trade 100,300 101,100 103,900 107,200 113,000 Transportation, Warehousing & Utilities 31,500 32,200 32,900 33,500 38,300 Information 23,600 22,600 22,100 21,500 22,400 Finance & Insurance 33,000 32,900 33,400 33,500 32,800 Real Estate & Rental & Leasing 15,200 14,900 15,400 16,200 16,800 Professional & Business Services 152,200 157,500 166,500 173,400 183,000 Educational & Health Services 153,300 153,200 160,200 171,500 178,400 Leisure & Hospitality 85,800 88,200 92,200 98,100 106,300 Other Services 35,000 35,700 36,400 37,000 38,000 Federal Government 15,700 14,600 14,200 13,800 13,800 State Government 38,100 38,300 38,500 38,900 39,800 Local Government 111,500 111,000 110,100 110,600 115,200 Total, All Industries [3] 965,700 974,200 1,003,500 1,039,000 1,096,300 [1] Labor force data is by place of residence;; includes self-employed individuals, unpaid family workers, household domestic

workers, and workers on strike. [2] Industry employment is by place of work;; excludes self-employed individuals, unpaid family workers, household domestic

workers, and workers on strike. [3] Totals may not add due to rounding. Source: State of California Employment Development Department.

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The table below shows the major employers in the County as of March 2016.

CONTRA COSTA COUNTY Largest Employers

2016 (Listed Alphabetically)

Employer Name Location Industry AAA NORTHERN CA NEVADA & UTAH Walnut Creek Automobile Clubs BART Richmond Transit Lines Bio-Rad Laboratories Inc Hercules Physicians & Surgeons Equip & Supls-Mfrs Chevron Corp Richmond Service Stations-Gasoline & Oil Chevron Corp San Ramon Oil Refiners (mfrs) Chevron Global Downstream LLC San Ramon Petroleum Products (whls) Chevron Technology Ventures San Ramon Technology Assistance Programs Chevron-Corp Not Available Real Estate Contra-Costa Regional Med Ctr Martinez Hospitals Department of Veterans Affairs Martinez Clinics Inspira Financial Co Walnut Creek Financial Advisory Services Job Connections Danville Personnel Consultants John Muir Medical Ctr Concord Hospitals John Muir Medical Ctr Walnut Creek Hospitals Kaiser Permanente Antioch Med Antioch Physicians & Surgeons Kaiser Permanente Martinez Med Martinez Clinics Kaiser Permanente Walnut Creek Walnut Creek Physicians & Surgeons La Raza Market Richmond Grocers-Retail Liberty Tax Svc Antioch Tax Return Preparation & Filing San Ramon Regional Medical Ctr San Ramon Hospitals Shell Oil Products Martinez Oil & Gas Producers St Marys College Moraga Schools-Universities & Colleges Academic Sutter Delta Medical Ctr Antioch Hospitals US Veterans Medical Ctr Martinez Outpatient Services USS-POSCO Industries Pittsburg Steel Mills (mfrs) Source: State of California Employment Development Department, America's Labor Market Information System (ALMIS) Employer Database, 2016 2nd Edition.

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Commercial Activity The following table shows total taxable retail sales, total taxable sales from all outlets

and related number of permits in the City on an annual basis for calendar years 2010 through 2014. Total taxable sales during calendar year 2014 in the City were reported to be $2,597,364,000, a 5.83% increase over the total taxable sales of $2,454,198,000 reported during the calendar year 2013. Annual figures for calendar year 2015 are not yet available.

CITY OF CONCORD Taxable Transactions

Number of Permits and Valuation of Taxable Transactions (Dollars in Thousands)

Retail Stores Total All Outlets

Number of Permits on August 1

Taxable

Transactions


Taxable

Transactions 2010 1,859 $1,704,604 2,931 $2,033,629 2011 1,804 1,828,933 2,836 2,127,071 2012 1,868 2,013,602 2,858 2,321,627 2013 1,917 2,103,068 2,892 2,454,198 2014 1,914 1,196,859 2,886 2,597,364 Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax).

The following table shows total taxable retail sales, total taxable sales from all outlets

and related number of permits in the County on an annual basis for calendar years 2010 through 2014. Total taxable sales during calendar year 2014 in the County were reported to be $15,030,047,000, a 3.86% increase over the total taxable sales of $14,471,988 reported during the calendar year 2013. Annual figures for calendar year 2015 are not yet available.

COUNTY OF CONTRA COSTA

Taxable Transactions Number of Permits and Valuation of Taxable Transactions

(Dollars in Thousands)

Retail Stores Total All Outlets


Taxable

Transactions


Taxable

Transactions 2010 14,423 $8,716,393 21,784 $11,954,846 2011 13,930 9,300,418 21,153 12,799,857 2012 14,343 10,062,437 21,504 13,997,249 2013 14,511 10,677,018 21,449 14,471,988 2014 14,657 11,092,210 21,550 15,030,047 Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax).

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Median Effective Buying Income

“Effective Buying Income” is defined as personal income less personal tax and nontax

payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.”

The following table summarizes the total effective buying income for the City, the

County, the State of California and the United States for the period 2011 through 2015. Effective Buying Income data is not yet available for calendar year 2016.

CITY OF CONCORD AND CONTRA COSTA COUNTY

EFFECTIVE BUYING INCOME As of January 1, 2011 through January 1, 2015

Year

Area

Total Effective Buying Income (000’s Omitted)

Median Household Effective

Buying Income 2011 City of Concord $2,792,595 $51,078 Contra Costa County 30,416,350 60,777 California 814,578,458 47,062 United States 6,438,704,664 41,253 2012 City of Concord $3,017,230 $50,147 Contra Costa County 33,604,875 61,167 California 864,088,828 47,177 United States 6,737,867,730 41,368 2013 City of Concord $3,013,768 $51,504 Contra Costa County 32,061,585 61,731 California 858,676,636 48,340 United States 6,982,757,379 43,715 2014 City of Concord $3,196,258 $55,664 Contra Costa County 33,833,478 64,090 California 901,189,699 50,072 United States 7,357,153,421 45,448 2015 City of Concord $3,459,310 $59,416 Contra Costa County 37,417,068 68,074 California 981,231,666 53,589 United States 7,757,960,399 46,738 Source: The Nielsen Company (US), Inc.

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Building Permit Activity Construction activity in the City and the County for the past five years for which data is

available are shown in the following tables. Annual figures are not yet available for calendar year 2016.

CITY OF CONCORD

Building Permit Valuation For Calendar Years 2011 through 2015

(Dollars in Thousands)

2011 2012 2013 2014 2015 Permit Valuation New Single-family $1,085.8 $2,440.3 $1,774.1 $2,628.0 $6,426.0 New Multi-family 0.0 0.0 0.0 0.0 0.0 Res. Alterations/Additions 19,089.6 19,684.9 783.5 22,135.9 13,205.9 Total Residential 20,175.4 22,125.2 2,557.6 24,763.9 19,631.9

New Commercial 1,261.1 7,552.1 1,104.0 351.9 690.4 New Industrial 1,088.0 20.0 0.0 0.0 0.0 New Other 0.0 0.0 730.7 1,507.1 2,341.6 Com Alterations/Additions 1,085.7 11,203.3 285.4 31,400.9 7,094.8 Total Nonresidential 3,434.8 18,775.4 2,120.1 33,259.9 10,126.8

New Dwelling Units Single Family 2 8 7 8 24 Multiple Family 0 0 0 0 0 TOTAL 2 8 7 8 24 Source: Construction Industry Research Board, Building Permit Summary.

COUNTY OF CONTRA COSTA Total Building Permit Valuations

For Calendar Years 2011 through 2015 (Valuations in Thousands)

2011 2012 2013 2014 2015 Permit Valuation New Single-family $211,417.9 $340,255.7 $469,376.5 $402,109.1 $629,638.5 New Multi-family 47,304.2 54,884.8 62,799.7 82,008.6 123,088.7 Res. Alterations/Additions 233,174.2 179,471.7 195,787.4 256,617.8 301,221.7 Total Residential 491,896.3 574,612.2 727,963.6 740,735.5 1,053,948.9

New Commercial 17,587.4 97,077.8 85,341.7 94,171.8 122,256.4 New Industrial 7,188.0 7,000.8 8,927.8 21,149.5 15,020.1 New Other 15,542.3 13,999.9 89,877.6 103,359.8 170,219.6 Com. Alterations/Additions 214,585.0 124,147.2 220,737.0 191,855.7 219,320.4 Total Nonresidential 254,902.7 242,225.7 404,884.1 410,536.8 526,816.5

New Dwelling Units Single Family 718 1,188 1,585 1,439 1,909 Multiple Family 355 949 370 588 629 TOTAL 1,073 2,137 1,955 2,027 2,538

Source: Construction Industry Research Board, Building Permit Summary.

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Transportation Centrally located in the East Bay region of the San Francisco Bay Area, the County is

accessible to major transportation resources including Bay Area Rapid Transit which connects five counties and several cities within and outside the County, such as Oakland, Berkeley, Fremont, Walnut Creek, Pleasant Hill, Concord, Dublin and Pleasanton. The County is also in close proximity to Highways 5, 205, 580 and 680, and is approximately 20 miles east of Oakland International Airport and 30 miles northeast of San Francisco International Airport providing for convenient interstate transportation. The County is also home to two non-commercial airports: Buchanan Field Airport and Byron Airport, located in the cities of Concord and Byron, respectively.

Education The County is comprised of 19 school districts, 5 community colleges, and is both home to and has access to major universities, including California State University, East Bay, University of California, Berkeley, Mills College, San Francisco State University, Golden Gate University, St. Mary’s College of California and John F. Kennedy University. The District serves approximately one-third of the County and is the largest school district within the County.

Recreation

The County is home to Mt. Diablo State Park (the “Park”), which was designated a State

park in 1921. Within the Park, Mount Diablo has an elevation of 3,849 feet providing a view west across the Golden Gate Bridge to the Farallon Islands, southeast to the James Lick Observatory, south to the Santa Cruz Mountains, east to the San Joaquin and Sacramento Rivers and north to St. Helena and Mount Lassen in the Cascades. The Park’s 22,000 acres consist mostly of typical central California oak and grassland country with extensive areas of chaparral. Areas of riparian woodland, knobcone pine and coulter pine are also scattered throughout the Park. Over 400 species of plants have been identified within the Park as well as abundant wildlife including deer, raccoons, gray fox, bobcat, mountain lions and striped and spotted skunks. The Park provides guided hiking, rock climbing, horseback riding, biking, camping, and picnic facilities to visitors. The County also contains numerous local parks and recreation facilities including Lefty Gomez Recreation Building and Ball Field Complex, an eleven acre park with ball fields, tennis courts, playground equipment, picnic and barbecue facilities and a community center, Montalvin Park, a seven acre community park with a basketball court, tennis court and picnic facilities, MonTara Bay Park Community Center and Ball Field Complex, a four acre complex with a ball field and community center and Rodeo Creek Trail, a two and a half mile trail with indigenous trees, shrubs, grasses and wildflowers.

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APPENDIX D

FORM OF OPINION OF BOND COUNSEL

[LETTERHEAD OF JONES HALL]

November __, 2016 Board of Education Mt. Diablo Unified School District 1936 Carlotta Drive Concord, California

OPINION: $__________ Mt. Diablo Unified School District (Contra Costa County, California) General Obligation Bonds, 2010 Election, Series G

Members of the Board of Education: We have acted as bond counsel to the Mt. Diablo Unified School District (the “District”) in

connection with the issuance by the District of its Mt. Diablo Unified School District (Contra Costa County, California) General Obligation Bonds 2010 Election, Series G, dated the date hereof (the “Bonds”), under the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (the “Bond Law”) and under Resolution No. 16/17-12 adopted by the Board of Education of the District on September 26, 2016 (the “Bond Resolution”). We have examined the law and such certified proceedings and other papers as we have deemed necessary to render this opinion.

As to questions of fact material to our opinion, we have relied upon representations of

the District contained in the Bond Resolution and in the certified proceedings and certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation.

Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The District is duly established and validly existing as a unified school district with

the power to issue the Bonds and to perform its obligations under the Bond Resolution. 2. The Bond Resolution has been duly adopted by the Board of Education of the

District and constitutes a valid and binding obligation of the District enforceable against the District in accordance with its terms.

3. The Bonds have been duly issued and sold by the District and are valid and binding

general obligations of the District, and the Board of Supervisors of the County of Contra Costa is obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the District subject to taxation by the District, without limitation as to rate or amount.

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4. Interest on the Bonds is excluded from gross income for federal income tax

purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations;; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on such corporations (as defined for federal income tax purposes), such interest is required to be taken into account in determining certain income and earnings. The opinions set forth in the preceding sentence are subject to the condition that the District comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The District has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

5. The interest on the Bonds is exempt from personal income taxation imposed by the

State of California. The rights of the owners of the Bonds and the enforceability of the Bonds and the Bond

Resolution may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases.

Respectfully submitted, A Professional Law Corporation

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APPENDIX E

FORM OF CONTINUING DISCLOSURE CERTIFICATE

$_________ MT. DIABLO UNIFIED SCHOOL DISTRICT


CONTINUING DISCLOSURE CERTIFICATE

This Continuing Disclosure Certificate (this “Disclosure Certificate”) is executed and delivered by the Mt. Diablo Unified School District (the “District”) in connection with the issuance of the above-captioned bonds (together, the “Bonds”). The Bonds are being issued under a resolution adopted by the Board of Education of the District on September 26, 2016 (the “Bond Resolution”). The District covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being

executed and delivered by the District for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5).

Section 2. Definitions. In addition to the definitions set forth in the Bond Resolution,

which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

“Annual Report” means any Annual Report provided by the District pursuant to, and as

described in, Sections 3 and 4. “Dissemination Agent” means, initially Dale Scott & Co., Inc., or any successor

Dissemination Agent designated in writing by the District and which has filed with the District a written acceptance of such designation.

“Listed Events” means any of the events listed in Section 5(a). “MSRB” means the Municipal Securities Rulemaking Board, which has been designated

by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information which may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future.

“Participating Underwriter” means any of the original underwriters of the Bonds required

to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission

under the Securities Exchange Act of 1934, as the same may be amended from time to time.

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Section 3. Provision of Annual Reports. (a) The District shall, or shall cause the Dissemination Agent to, not later than the

Annual Report Date, commencing March 31, 2017 with the report for the 2015-16 fiscal year, provide to the MSRB in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4. Not later than 15 Business Days prior to the Annual Report Date, the District shall provide the Annual Report to the Dissemination Agent (if other than the District). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the District) has not received a copy of the Annual Report, the Dissemination Agent shall contact the District to determine if the District is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4;; provided that the audited financial statements of the District may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the District’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). The District shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the District hereunder.

(b) If the District does not provide (or cause the Dissemination Agent to provide) an

Annual Report by the Annual Report Date, the District shall provide (or cause the Dissemination Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A, with a copy to the Paying Agent and Participating Underwriter.

(c) With respect to each Annual Report, the Dissemination Agent shall:

(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports;; and

(ii) if the Dissemination Agent is other than the District, file a report with

the District certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports. The District’s Annual Report shall contain or

incorporate by reference the following: (a) Audited financial statements prepared in accordance with generally accepted

accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the District’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.

(b) Unless otherwise provided in the audited financial statements filed on or before the

Annual Report Date, the following information with respect to the most recently completed fiscal year:

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(i) assessed value of taxable property in the District, including

identification of top ten secured property taxpayers and their respective secured property assessed values;;

(ii) property tax levies, collections and delinquencies, but only if the

District’s general obligation bond collections are not included on the County’s Teeter Plan;; and

(iii) the District’s most recently approved Budget or interim report, which is

available at the time of filing the Annual Report. (c) In addition to any of the information expressly required to be provided under this

Disclosure Certificate, the District shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.

(d) Any or all of the items listed above may be included by specific reference to other

documents, including official statements of debt issues of the District or related public entities, which are available to the public on the MSRB’s internet web site or filed with the Securities and Exchange Commission. The District shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events. (a) The District shall give, or cause to be given, notice of the occurrence of any of the

following events with respect to the Bonds:

(1) Principal and interest payment delinquencies.

(2) Non-payment related defaults, if material.

(3) Unscheduled draws on debt service reserves reflecting financial difficulties.

(4) Unscheduled draws on credit enhancements reflecting financial difficulties.

(5) Substitution of credit or liquidity providers, or their failure to perform.

(6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.

(7) Modifications to rights of security holders, if material.

(8) Bond calls, if material, and tender offers.

(9) Defeasances.

(10) Release, substitution, or sale of property securing repayment of the securities, if material.

(11) Rating changes.

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(12) Bankruptcy, insolvency, receivership or similar event of the District.

(13) The consummation of a merger, consolidation, or acquisition involving the District or the sale of all or substantially all of the assets of the District, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.

(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.

(b) Whenever the District obtains knowledge of the occurrence of a Listed Event, the District shall, or shall cause the Dissemination Agent (if not the District) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Bond Resolution.

(c) The District acknowledges that the events described in subparagraphs (a)(2),

(a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), and (a)(14) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The District shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that District determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the District obtains knowledge of the occurrence of any of these Listed Events, the District will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the District will cause a notice to be filed as set forth in paragraph (b) above.

(d) For purposes of this Disclosure Certificate, any event described in paragraph

(a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the District in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the District, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the District.

Section 6. Identifying Information for Filings with the MSRB. All documents

provided to the MSRB under this Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.

Section 7. Termination of Reporting Obligation. The District’s obligations under this

Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).

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Section 8. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent.

Section 9. Amendment;; Waiver. Notwithstanding any other provision of this

Disclosure Certificate, the District may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:

(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it

may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted;;

(b) the undertakings herein, as proposed to be amended or waived, would, in the

opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances;; and

(c) the proposed amendment or waiver either (i) is approved by holders of the Bonds

in the manner provided in the Bond Resolution for amendments to the Bond Resolution with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

If the annual financial information or operating data to be provided in the Annual Report

is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to the undertaking specifying the accounting principles to be

followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the District to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 10. Additional Information. Nothing herein prevents the District from

disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the District shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

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Section 11. Default. In the event of a failure of the District to comply with any provision of this Disclosure Certificate, any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Bond Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the District to comply with this Disclosure Certificate shall be an action to compel performance.

Section 12. Duties, Immunities and Liabilities of Dissemination Agent. The

Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the District agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

Section 13. Beneficiaries. This Disclosure Certificate inures solely to the benefit of the

District, the Dissemination Agent, the Participating Underwriters and holders and beneficial owners from time to time of the Bonds, and creates no rights in any other person or entity.

Dated: November ___, 2016 MT. DIABLO UNIFIED SCHOOL DISTRICT

By: Superintendent

Acceptance of Duties as Dissemination Agent: DALE SCOTT & CO., INC. By:

Authorized Officer

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EXHIBIT A

NOTICE OF FAILURE TO FILE ANNUAL REPORT

Name of Obligor: Mt. Diablo Unified School District

Name of Bond Issue: $__________ Mt. Diablo Unified School District (Contra Costa County, California) General Obligation Bonds, 2010 Election, Series G Date of Issuance: November ____, 2016

NOTICE IS HEREBY GIVEN that the District has not provided an Annual Report with respect to the above-named Bonds as required by Section 5.05 of the resolution adopted by the Board of Education of the District authorizing the issuance of the Bonds. The District anticipates that the Annual Report will be filed by _____________.

Dated:

_____________, as Dissemination Agent By:

Authorized Officer cc: Mt. Diablo Unified School District

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APPENDIX F

BOOK-ENTRY ONLY SYSTEM

The following description of the Depository Trust Company (“DTC”), the procedures and

record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Neither the District nor the Paying Agent take any responsibility for the information

contained in this Section. No assurances can be given that DTC, DTC Participants or Indirect Participants will

distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) Bonds representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC.

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities

depository for the securities (in this Appendix, the “Bonds”). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC. If, however, the aggregate principal amount of any maturity exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company

organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and

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dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference.

3. Purchases of Bonds under the DTC system must be made by or through Direct

Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive Bonds representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with

DTC are registered in the name of DTC’s partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds;; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by

Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them.

6. Redemption notices will be sent to DTC. If less than all of the Bonds within an issue

are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with

respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI

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Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and interest payments on the Bonds will be

made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and corresponding detail information from District or Paying Agent on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor its nominee, Paying Agent, or District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of District or Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. DTC may discontinue providing its services as securities depository with respect to

the Bonds at any time by giving reasonable notice to District or Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bonds are required to be printed and delivered.

10. The District may decide to discontinue use of the system of book-entry-only

transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC.

11. The information in this section concerning DTC and DTC’s book-entry system has

been obtained from sources that District believes to be reliable, but District takes no responsibility for the accuracy thereof.

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APPENDIX G

CONTRA COSTA COUNTY INVESTMENT POLICY AND INVESTMENT REPORT

CONTRACOSTACOUNTYANNUALINVESTMENTPOLICYFY2016‐2017 Page1

CONTRA COSTA COUNTY

TREASURER’S

ANNUAL INVESTMENT POLICY

FISCAL YEAR 2016‐2017

APPROVED BY THE BOARD OF SUPERVISORS

IN AUGUST 2016

The Contra Costa County Treasurer will annually present to both the Board of Supervisors (Board) and the Treasury Oversight Committee (Committee) a statement of investment policy, which the Board shall review and approve at a public meeting. Any changes in the policy shall also be reviewed and approved by the Board at a public meeting (Gov’t Code §53646(a)(1)).

OFFICE OF COUNTY TREASURER-TAX COLLECTOR 625 COURTS STREET, ROOM 100 MARTINEZ, CALIFORNIA 94553


TableofContents1.0 PURPOSE ............................................................................................................................................. 4

2.0 SCOPE .................................................................................................................................................. 4

3.0 PARTICIPANTS ..................................................................................................................................... 4

4.0 IMPLEMENTATION .............................................................................................................................. 4

5.0 OBJECTIVES ......................................................................................................................................... 4

6.0 GENERAL STRATEGY ........................................................................................................................... 5

7.0 STANDARD OF CARE ........................................................................................................................... 6

8.0 SAFEKEEPING AND CUSTODY ............................................................................................................. 7

9.0 AUTHORIZED BROKERS/DEALERS AND FINANCIAL INSTITUTIONS ................................................... 8

10.0 SUITABLE AND AUTHORIZED INVESTMENTS ..................................................................................... 8

11.0 RESTRICTIONS AND PROHIBITIONS ................................................................................................. 14

12.0 INVESTMENT PARAMETERS ............................................................................................................. 15

13.0 CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF) ................................................................. 17

14.0 PORTFOLIO MANAGEMENT ACTIVITY ............................................................................................. 19

15.0 REPORTING ....................................................................................................................................... 19

16.0 COMPENSATION ............................................................................................................................... 20

17.0 CALCULATING AND APPORTIONING POOL EARNINGS .................................................................... 21

18.0 DEPOSITS AND WITHDRAWALS IN THE TREASURY ......................................................................... 21

19.0 TEMPORARY BORROWING OF POOL FUNDS ................................................................................... 22

20.0 INVESTMENT OF BOND PROCEEDS .................................................................................................. 23

21.0 DISASTER RECOVERY PLAN .............................................................................................................. 23

22.0 POLICY CONSIDERATIONS ................................................................................................................ 23

AUTHORIZATION FOR LAIF INVESTMENTS .................................................................................................. 24

APPROVED BROKERS ................................................................................................................................... 25

APPROVED ISSUERS .................................................................................................................................... 26

APPROVED PRIMARY DEALERS ................................................................................................................... 27

CONFLICT OF INTEREST CODE ..................................................................................................................... 28


GLOSSARY OF TERMS .................................................................................................................................. 30


CONTRA COSTA COUNTY

TREASURER’S ANNUAL INVESTMENT POLICY

1.0 PURPOSE

The purpose of this Investment Policy (Policy) is to establish cash management and investment guidelines of surplus funds entrusted to the care of the Contra Costa County Treasurer’s Office (Treasurer’s Office) in accordance with applicable sections of California Government Code. All portfolio activities will be judged by the standards of the Policy and its ranking of investment objectives.

2.0 SCOPE

This Policy applies to all funds over which the Treasurer’s Office has been granted fiduciary responsibility and direct control for their management.

3.0 PARTICIPANTS

This Policy restricts deposits to those agencies mandated by California Government Code as treasury deposits. However, subject to the consent of the Treasurer’s Office and in accordance with section 53684, exemptions may be granted to non‐mandatory depositing agencies, if it is determined that the additional deposit provides a benefit to the investment pool as a whole while not creating unmanageable liquidity risk.

4.0 IMPLEMENTATION

In order to provide direction to those responsible for management of surplus funds, the County Treasurer has established this Policy and presented it to the Treasury Oversight Committee and the Board of Supervisors, and has made it available to the legislative body of local agencies that participates in the County Treasurer’s investment program.

The Policy explains investable funds; authorized instruments; credit quality required; maximum maturities and concentrations; collateral requirements; qualifications of broker‐dealers and financial institutions doing business with, or on behalf of, the County; limits on gifts and honoraria; the reporting requirements; the Treasury Oversight Committee; the manner of apportioning interest earnings and appropriating investment costs; and the criteria to request withdrawal of funds.

5.0 OBJECTIVES

Gov’t Code §53600.5: When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its controls.

5.1 Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and market risk.

5.1.a Credit Risk The Treasurer will minimize credit risk, the risk of loss due to the failure of the security issuer or backer, by:

1. Limiting investments to the safest type of securities


2. Pre‐qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the Treasurer’s Office will do business

3. Diversifying the investment portfolio so that potential losses on individual securities will be minimized.

5.1.b Market Risk The Treasurer’s Office will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates, by:

1. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity

2. Investing operating funds primarily in shorter‐term securities, money market mutual funds, or similar investment pools.

5.2 Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in money market mutual funds or local government investment pools which offer same‐day liquidity for short‐term funds.

5.3 Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities may be sold prior to maturity when deemed prudent and necessary. Reasons of selling include but are not limited to:

1. A security with declining credit may be sold early to minimize loss of principal.

2. A security swap would improve the quality, yield, or target duration in the portfolio.

3. Liquidity needs of the portfolio require that the security be sold.

4. Portfolio rebalancing would bring the portfolio back into compliance.

Investments will be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

5.4 Public Trust: All investments will be in conformance with state law and county ordinances and policies. The investment of public funds is a task that must maintain the public trust.

6.0 GENERAL STRATEGY

6.1 Buy and Hold: The Treasurer will generally use the passive investment strategy known as BUY AND HOLD whereas securities are purchased with the intent of holding them to maturity. Interest income and the reinvestment of interest income usually are the only sources of return in the portfolio.

The investment program will focus on purchasing securities that will limit or reduce the potential default risk and ensure the reliability of cash flows from interest income. Generally, purchases will be laddered throughout the portfolio in order to minimize the number and cost of investment transactions.


6.2 Directed Investment: Local agencies may direct the investment, exchange, liquidation and reinvestment of their assets, but must meet the provisions of the investment objectives of this policy. The withdrawal of funds in the Treasury shall coincide with investment maturities or authorized sales of securities by the local agency’s legislative or governing body.

7.0 STANDARD OF CARE

The following policies are designed in accordance with Government Code to provide transparency to the

investment program while enhancing portfolio controls:

7.1 Prudent Investor Standard: “Governing bodies of local agencies or persons authorized to make

investment decisions on behalf of those local agencies investing public funds are trustees and

therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting,

purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care,

skill, prudence and diligence under the circumstances then prevailing, that a prudent person

acting in a like capacity and familiarity with those matters would use in the conduct of funds of a

like character and with like aims, to safeguard the principal and maintain the liquidity needs of

the agency. Within the limitations of this section and considering individual investments as part

to an overall strategy, investments may be acquired as authorized by law.” (Gov’t Code

§53600.3.1)

7.2 Limits on Honoraria, Gifts, and Gratuities

In accordance with California Government Code Section 27133(d), this Policy establishes limits for the Director of Finance; individuals responsible for management of the portfolios; and members of the Investment Group and Review Group who direct individual investment decisions, select individual investment advisors and broker/dealers, and conduct day‐to‐day investment trading activity. The limits also apply to members of the Oversight Committee. Any individual who receives an aggregate total of gifts, honoraria and gratuities in excess of $50 in a calendar year from a broker/dealer, bank or service provider to the Pooled Investment Fund must report the gifts, dates and firms to the designated filing official and complete the appropriate State forms.

No individual may receive aggregate gifts, honoraria, and gratuities in a calendar year in excess of the amount specified in Section 18940.2(a) of Title 2, Division 6 of the California Code of Regulations. This limitation is $460 for the period January 1, 2015, to December 31, 2016. Any violation must be reported to the State Fair Political Practices Commission.

Please refer to the Contra Costa County Treasurer‐Tax Collector’s Conflict of Interest Code for further explanation of the prohibited activities, and their enforcements and exceptions.

7.3 Delegation of Authority

7.4.a Subject to Section 53607, the board of supervisors may, by ordinance, delegate to the county treasurer the authority to invest or reinvest the funds of the county and the funds of other depositors in the county treasury, pursuant to Chapter 4 (commencing with Section 53600) of Part 1 of Division 2 of Title 5. The county treasurer shall thereafter assume full responsibility for those transactions until the board of supervisors either revokes its delegation of authority, by ordinance, or decides not to renew the annual delegation, as provided in Section 53607 (Gov’t Code §27000.1).

7.4.b The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a one‐year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or


expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year (Gov’t Code §53607).

7.4.c Responsibility for the operation of the investment program is hereby delegated to the County Treasurer, who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this investment policy. Procedures include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the County Treasurer.

7.5 Treasury Oversight Committee: In compliance with a Board Order of the Contra Costa County Board of Supervisors, the County Contra Costa County Treasury Oversight Committee was established in November 6 of 1995. The intent of the Committee is to allow local agencies, including school districts, as well as the public, to participate in reviewing the policies that guide the investment of public funds. The mandate for the existence of the Committee was suspended in 2004 by the State of California; however, the Committee serves an important function and the Treasurer’s Office has elected to continue the program.

7.5.a The Committee shall annually review and monitor the County’s Investment Policy.

7.5.b The Committee shall cause an annual audit to determine the County Treasurer’s compliance with the Investment Policy and all investment funds in the county Treasury.

8.0 SAFEKEEPING AND CUSTODY

8.1 Delivery vs. Payment: All trades of marketable securities will be executed (cleared and settled)

on a delivery vs. payment (DVP) basis to ensure that securities are deposited in the County

Treasurer’s safekeeping institution prior to the release of funds.

8.2 Third‐party Safekeeping: Securities will be held by an independent third‐party safekeeping

institution selected by the County Treasurer. All securities will be evidenced by safekeeping

receipts in the County’s name or in a name designated by the County Treasurer. The

safekeeping institution shall annually provide a copy of its most recent report on internal

controls ‐ Service Organization Control Reports (formerly 70, or SAS 70) prepared in accordance

with the Statement on Standards for Attestation Engagements (SSAE) No. 16 (effective June 15,

2011.)

8.2.a A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered or non‐registered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisors, consultants or managers using the agency’s funds, by book entry, physical delivery or by third‐party custodial agreement. The transfer of securities to the counterparty bank’s customer book‐entry account may be used for book‐entry delivery. For purposes of this section, “counterparty” means the other party to the transaction. A counterparty bank’s trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Where this section does not specify a limitation on the term of remaining maturity at the time of


the investment, no investment shall be made in any security other than a security underlying a repurchase or reverse repurchase agreement authorized by this section.

8.2.b In compliance with this section, the securities of Contra Costa County and its agencies shall be in safekeeping at The Bank of New York Trust Company, N. A., a counterparty bank’s trust department or as defined in the debt indenture and contract.

8.3 Internal Controls: The County Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Treasurer are protected from loss, theft or misuse. Specifics for the internal controls shall be documented in an investment procedures manual that shall be reviewed and updated periodically by the County Treasurer.

The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.

9.0 AUTHORIZED BROKERS/DEALERS AND FINANCIAL INSTITUTIONS

9.1 All transactions initiated on behalf of the Pooled Investment Fund and Contra Costa County shall be executed only through one of the following:

1. Government security dealers reporting as primary dealers to the Market Reports Division of the Federal Reserve Bank of New York;

2. Banks and financial institutions that directly issue their own securities which have been placed on the Approved List of Broker/Dealers and Financial Institutions;

3. Brokers/dealers in the State of California approved by the County Treasurer based on the reputation and expertise of the company and individuals employed.

Broker/dealers and financial institutions which have exceeded the political contribution limits as contained in Rule G‐37 of the Municipal Securities Rulemaking Board within a four year period to the County Treasurer or a member of the governing board of a local agency or any candidate for those offices, are prohibited from the Approval List of Broker/Dealers and Financial Institutions.

9.2 Qualifications: All financial institutions and broker/dealers who desire to become qualified for investment transactions must complete Contra Costa County Treasurer’s Office Broker/Dealer Due Diligence Questionnaire which can be obtained at www.cctax.us. An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Treasurer’s Office.

9.3 List of Approved Financial Institutions, Security Brokers and Dealers A list will be maintained of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security broker/dealers selected for creditworthiness and qualifications stated in section 9.2. However, the County Treasury will not be limited to the financial institutions and brokers/dealers on the list. Others will be included as long as conditions for authorized financial institutions and brokers/dealers set forth in this Policy are met. Additionally, deletions and additions are based on the maintenance of required credit quality as rated by a nationally recognized statistical‐rating organization (NRSRO) or reliable financial sources.

10.0 SUITABLE AND AUTHORIZED INVESTMENTS

10.1 Authorized Investment Types: (Gov’t Code §53601 et seq.) The legislative body of a local agency having moneys in a sinking fund or moneys in its treasury not required for the immediate


needs of the local agency may invest any portion of the moneys that it deems wise or expedient in the investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, including those purchased for the agency by financial advisers, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third‐party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery.

For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section specifies a percentage and/or rating limitation for a particular category of investment, that percentage and/or rating are applicable only at the date of purchase. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement or securities lending agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment:

10.1.a Bonds issued by the local agencies, including bonds payable solely out of the revenues from a revenue‐producing property, owned, controlled, or operated by the local agency or by a department, board, agency or authority of the local agency.

10.1.b United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.

10.1.c Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue‐producing property owned, controlled, or operated by the state or by a department, board, agency or authority of the state.

10.1.d Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue‐producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

10.1.e Bonds, notes, warrants or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue‐producing property owned, controlled or operated by the local agency, or by a department, board, agency or authority of the local agency.

10.1.f Federal agency or United States government‐sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government‐sponsored enterprises.

10.1.g Banker’s acceptances otherwise known as bills of exchange or time drafts drawn on and accepted by a commercial bank. Purchases of banker’s acceptances may not exceed 180 days’ maturity or 40 percent of the agency’s money that may be invested pursuant to this section. However, no more than 30 percent of the agency’s money may be invested in banker’s acceptances of any one commercial bank pursuant to this section. This subdivision does not preclude a municipal utility district from investing any money


in its treasury in any manner authorized by the Municipal Utility District Act (Division 6, commencing with Section 11501, of the Public Utilities Code).

10.1.h Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical‐rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):

1. The entity meets the following criteria: A. Is organized and operating in the United States as a general corporation.

B. Has total assets in excess of five hundred million dollars ($500,000,000).

C. Has debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical‐rating organization (NRSRO).

2. The entity meets the following criteria:

A. Is organized within the United States as a special purpose corporation, trust, or limited liability company.

B. Has program‐wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond.

C. Has commercial paper that is rated “A‐1” or higher, or the equivalent, by a nationally recognized statistical‐rating organization (NRSRO).

Eligible commercial paper shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25 percent of their moneys in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstanding commercial paper of any single issuer. Counties or a city and county may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635:

i. Not more than 40 percent of the local agency’s money may be invested in eligible commercial paper.

ii. Not more than 10 percent of the total assets of the investments held by a local agency may be invested in any one issuer’s commercial paper.

10.1.i Negotiable certificates of deposit issued by a nationally‐ or state‐chartered bank or a savings association or federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state‐licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the agency’s money that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposits do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the money are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or any person with investment decision making authority in the administrative office, manager’s office, budget office, auditor‐controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit.

10.1.j Repurchase and reverse repurchase agreements


1. Investments in repurchase agreements or reverse repurchase agreements of any securities authorized by this section, provided that the agreements are subject to this subdivision, including the delivery requirements specified in this section, and that a signed Master Repurchase Agreement is on file in the Treasurer’s Office for all financial institutions that enter into a repurchase agreement with Contra Costa County.

2. Investments in repurchase agreements may be made on any investment authorized in this section when the term of the agreement does not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business day.

3. Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met:

A. The security to be sold using a reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale.

B. The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio.

C. The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.

D. Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty using a reverse repurchase agreement or securities lending agreement shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security.

4. Prior approval of the governing body; only with primary dealers:

A. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security may be made only upon prior approval of the governing body of the local agency and shall be made only with primary dealers of the Federal Reserve Bank of New York or with a nationally or state‐chartered bank that has or has had a significant banking relationship with a local agency.

B. For purposes of this policy, "significant banking relationship" means any of the following activities of a bank:


i. Involvement in the creation, sale, purchase, or retirement of a local agency's bonds, warrants, notes, or other evidence of indebtedness.

ii. Financing of a local agency's activities.

iii. Acceptance of a local agency's securities or funds as deposits.

5. Definitions and terms of repos, securities and securities lending:

A. "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third‐party custodial agreement. The transfer of underlying securities to the counterparty bank's customer book‐entry account may be used for book‐entry delivery.

B. "Securities," for purposes of repurchase under this subdivision, means securities of the same issuer, description, issue date, and maturity.

C. "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements.

D. "Securities lending agreement" means an agreement under which a local agency agrees to transfer securities to a borrower who, in turn, agrees to provide collateral to the local agency. During the term of the agreement, both the securities and the collateral are held by a third party. At the conclusion of the agreement, the securities are transferred back to the local agency in return for the collateral.

E. For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements, securities lending agreements, or other similar borrowing methods.

F. For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds.

10.1.k Medium‐term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated "A" or better by an NRSRO. Purchases of medium‐term notes shall not include other instruments authorized by this section and may not exceed 30 percent of the agency's moneys that may be invested pursuant to this section.

10.1.l Shares of beneficial interest

1. Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (o), inclusive, and that comply with the investment restrictions of this article and Article 2 (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase


agreement or securities lending agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement or securities lending agreement may be 100 percent of the sales price if the securities are marked to market daily.

2. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (l5 U.S.C. Sec. 80a‐1 et seq.).

3. If investment is in shares issued pursuant to paragraph (1), the company shall have met either of the following criteria:

A. Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

B. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (o), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).

4. If investment is in shares issued pursuant to paragraph (2), the company shall have met the following criteria:

A. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations.

B. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to (k), inclusive, and subdivisions (m) to (o), inclusive, and with assets under management in excess of five hundred million dollars ($500,000,000).

5. The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge and shall not exceed 20 percent of the agency’s money that may be invested pursuant to this section. However, no more than 10 percent of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph (1).

10.1.m Moneys held by a trustee or fiscal agent and pledged to the payment of security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are not specific statutory provision, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance.

10.1.n Notes, bonds, or other obligations that are at all times secured by a valid first‐priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer


of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.

10.1.o Any mortgage pass‐through security, collateralized mortgage obligation, mortgage‐backed or other pay‐through bond, equipment lease‐backed certificate, consumer receivable pass‐through certificate, or consumer receivable‐backed bond of a maximum of five years’ maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an “A” or higher rating for the issuer’s debt as provided by a nationally recognized rating service and rated in a rating category of “AA” or its equivalent or better by a nationally recognized rating service. Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency’s surplus money that may be invested pursuant to this section.

10.1.p Shares of beneficial interest issued by a joint power authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (n), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing shares shall have retained an investment adviser that meets all of the following criteria:

1. The adviser is registered or exempt from registration with the Securities and Exchange Commission.

2. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (n) inclusive.

3. The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

10.1.q United States dollars denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter‐American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.

11.0 RESTRICTIONS AND PROHIBITIONS

11.1 Restrictions set by the Treasurer

11.1.a All investments purchased by the Treasurer’s Office shall be of investment grade. The minimum credit rating of purchased investments shall be as defined by Government Code 53600 et. seq.

11.1.b All legal securities issued by a tobacco‐related company are prohibited. A tobacco‐related company is defined as 1) an entity that makes smoking products from tobacco used in cigarettes, cigars and/or snuff, or for smoking in pipes or 2) a company that has total revenues of 15 percent or more from the sale of such tobacco products. The tobacco‐related issuers restricted from any investment are Alliance One, Altria Group, Inc., Auri Inc., British American Tobacco PLC, Imperial Tobacco Group PLC, Kirin International Holding Inc., Lorillard, Philip Morris International, Reynolds American, Inc., Schweitzer‐Mauduit International Inc., Smokefree Innotec Inc., Star Scientific Inc., Universal Corp., and Vector Group, Ltd. The Treasury staff will update the list of tobacco‐related companies when necessary.


11.1.c Financial futures or financial option contracts will each be approved on a per trade basis by the County Treasurer.

11.1.d Reverse repurchase agreements will be used strictly for the purpose of supplementing income with a limit of 10 percent of the total portfolio with prior approval of the Treasurer.

11.1.e SBA loans require prior approval of the Treasurer in every transaction.

11.1.f Securities purchased through brokers will be held in safekeeping at The Bank of New York Trust Company, N.A. or as designated by the specific contract(s) for government securities and tri‐party repurchase agreements.

11.1.g Swaps and Trades will each be approved on a per‐trade basis by Treasurer or Assistant Treasurer.

11.1.h Bank CDs or non‐negotiable CDs will be collateralized at 110 percent by government securities or 150 percent by current mortgages. There will be no waiver of the first $100,000 collateral except by special arrangement with the Treasurer.

11.2 Prohibitions by Government Code (§53601.6)

11.2.a A local agency shall not invest any funds pursuant to this Article or pursuant to Article 2 (commencing with Section 53630) in inverse floaters, range notes or interest‐only strips that are derived from a pool of mortgages.

11.2.b A local agency shall not invest any funds pursuant to this article or pursuant to Article 2 (commencing with Section 53630) in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a‐1,et seq.) that are authorized for investment pursuant to subdivision (l) of Section 53601.

12.0 INVESTMENT PARAMETERS

12.1 Diversification: Investments shall be diversified so as to minimize the risk of loss and to maximize the rate of return by:

1. Limiting investment to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities),

2. Limiting investment in securities that have higher credit risks,

3. Investing in securities with varying maturities, and

4. Continuously investing a portion of the portfolio in readily available funds such as investment pools, money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.

12.2 Maximum Maturities: To the extent possible, the County Treasurer shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Treasurer will not directly invest in securities maturing more than five (5) years from the date of purchase or in accordance with state and local statutes and ordinances. The Treasurer shall adopt weighted average maturity limitations (which often range from 90 days to 3 years), consistent with the investment objectives.

Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as LAIF,


money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.

12.3 Exception to Maximum Maturity: In accordance with Government Code §53601 the County Treasurer retains the right to petition the Board of Supervisors for approval to invest in securities with a final maturity in excess of five years. The Board of Supervisors adoption of any resolution allowing maturities beyond five years shall be considered an allowed modification to this policy and any investments made in accordance with the modification shall be allowable under this policy.

12.4 Investment Criteria1: All limitations set forth in this Policy are applicable only at the time of purchase. The County Treasurer has the full discretion to rebalance the portfolio when it is out of compliance owing to various reasons, such as market fluctuation.

INVESTMENT TYPE MAXIMUM

% of PORTFOLIO

MAXIMUM MATURITY

MAXIMUM % of ISSUE

OTHER RESTRICTIONS

Bonds issued by local agencies, §53601 (a)

100% 5 years 100%

U.S. Treasury Obligations, §53601 (b) 100% 5 years 100%

Registered State Warrants, and CA Treasury Notes and bonds, §53601 (c)

100% 5 years 100%

Registered Treasury Notes or Bonds of any of the other 49 state in addition to CA, §53601 (d)

100% 5 years 100%

Bonds and Notes issued by other local agencies in California, §53601 (e)

100% 5 years 100%

Obligations of U.S. Agencies or government sponsored enterprises, §53601 (f)

100%

5 years

100%

U.S. Agencies Callables 100% 5 years 25%

Bankers Acceptances), §53601 (g) Domestic: ($5B min. assets) Foreign: ($5B min. assets)

40%

40%

180 days

180 days

30%

Aggregate

5% Aggregate

Commercial paper, §53601 (h) and §53635 (a)

40% 270 days or less

10% Aggregate

No more than 10 % of the local agency’s money may be invested in the outstanding commercial paper of any single issuer.

Negotiable Certificates of Deposit ($5 billion minimum assets), §53601 (i)

30% 5 years 10%

Aggregate

Repurchase Agreements secured by U.S. Treasury or agency obligation (102% collateral), §53601 (j)

100% 1 year

See limitations

for Treasuries

and Agencies above

Generally limited to Wells Fargo Bank, Bank of America or other institutions with whom the County treasury has executed tri‐party agreements. Collateral will be held by a third party to the transaction that may include the trust department of particular banks. Collateral will be only securities that comply with Government Code 53601.

Reverse Repurchase Agreements and Securities Lending Agreements, §53601 (j)

20% 92 days

See limitations

for Treasuries

and Agencies above

1 The rating requirement for each investment type is referenced in the relevant sections of California Government Code.


INVESTMENT TYPE MAXIMUM

% of PORTFOLIO

MAXIMUM MATURITY

MAXIMUM % of ISSUE

OTHER RESTRICTIONS

Corporate bonds, Medium Term Notes & Covered, §53601 (k)

30%

5 years 5%

Aggregate

Shares of beneficial interest issued by diversified mgt. companies §53601 (l)

20% N/A 10%

Aggregate

Moneys held by a trustee or fiscal agent, §53601 (m)

20% N/A

Collateralized Notes, Bonds, Time Deposits, or other obligations, §53601 (n)

15% 5 years 5%

Aggregate

Collateralized by the eligible securities at a percentage specified in Government Code 53652.

Mrtg Backed Securities/CMO’s:

Asset Backed Securities §53601 (o)

20%

20%

5 Years

5 Years

5% Aggregate

No Inverse Floaters No Range Notes No Interest only strips derived from a pool of mortgages

Joint Powers Authority, CalTRUST, §53601 (p)

As limited by

CalTRUST N/A

As limited by CalTRUST

Supranational obligations §53601 (q) 30% 5 Years 100% Rated “AA” or better by an NRSRO

Local Agency Investment Fund (LAIF), §16429.1

As Limited by LAIF

N/A As limited by

LAIF

13.0 CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF)

13.1 General Information (Gov’t Code §16305.9).

13.1.a All money in the Local Agency Investment Fund shall be held in trust in the custody of the State Treasurer.

13.1.b All money in the Local Agency Investment Fund is nonstate money. That money shall be held in a trust account or accounts. The Controller shall be responsible for maintaining those accounts to record the Treasurer's accountability, and shall maintain a separate account for each trust deposit in the Local Agency Investment Fund.

13.1.c That money shall be subject to audit by the Department of Finance and to cash count as provided for in Sections 13297, 13298, and 13299. It may be withdrawn only upon the order of the depositing entity or its disbursing officers. The system that the Director of Finance has established for the handling, receiving, holding, and disbursing of state agency money shall also be used for the money in the Local Agency Investment Fund.

13.1.d All money in the Local Agency Investment Fund shall be deposited, invested, and reinvested in the same manner and to the same extent as if it were state money in the State Treasury.

13.2 Investment and Distribution of Deposits (§16429.1).

13.2.a There is in trust in the custody of the Treasurer the Local Agency Investment Fund, which fund is hereby created. The Controller shall maintain a separate account for each governmental unit having deposits in this fund.

13.2.b Notwithstanding any other provisions of law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.


13.2.c Notwithstanding any other provisions of law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials, or an officer of a qualified quasi‐governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment.

13.2.d Notwithstanding any other provision of law or of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agency engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent, and the Controller shall maintain a separate account for each deposit of proceeds.

13.2.e The local governmental unit, the nonprofit corporation, or the quasi‐governmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer.

13.2.f The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer.

13.2.g The Local Investment Advisory Board shall determine those quasi‐governmental agencies which qualify to participate in the Local Agency Investment Fund.

13.2.h The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, the deposit would adversely affect the state’s portfolio.

13.2.i The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2.

13.2.j Money in the fund shall be invested to achieve the objective of the fund, that is to realize the maximum return consistent with safe and prudent treasury management.

13.2.k All instruments of title of all investments of the fund shall remain in the Treasurer’s vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank.

13.2.l Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental units or trustees or fiscal agents, nonprofit corporations, and quasi‐governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment fund and the length of time the amounts remained therein. An amount equal to the reasonable costs incurred in carrying out the provisions of this section, not to exceed a maximum of one‐half of one percent of the earnings of this fund, shall be deducted from the earnings prior to distribution. The amount of this deduction shall be


credited as reimbursements to the state agencies having incurred costs in carrying out the provisions of this section.

13.2.m The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month.

14.0 PORTFOLIO MANAGEMENT ACTIVITY

14.1 Passive Portfolio Management:

(See Section 6.0., General Strategy)

14.2 Competitive Bidding:

Investments will be purchased in the most cost effective and efficient manner by using a competitive bidding process for the purchase of securities. Competitive bidding is required from a pre‐approved list of broker/dealers on all investment transactions except for new issue securities.

14.3 Reviewing and Monitoring of the Portfolio:

Monthly reports will review portfolio investments to ensure they are kept track of in a timely manner. The reports will also monitor the County Treasurer’s investment practices and the results of such practices.

14.4 Portfolio Adjustments:

Certain actions may be taken if the portfolio becomes out of compliance. For instance, should a concentration limitation be exceeded due to an incident such as a fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses; however, the County Treasurer may choose to rebalance the portfolio earlier to bring it back into compliance if the portfolio will not suffer any losses for selling the investment prior to maturity.

14.5 Performance Standards:

The investment portfolio will be managed in accordance with the parameters specified within this Policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. A series of appropriate benchmarks shall be established against which portfolio performance shall be compared on a regular basis.

15.0 REPORTING

15.1 Methodology: The County Treasurer shall prepare an investment report at least quarterly, including a management summary that provides an analysis of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner which will allow the County Treasurer to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report shall be provided to the Chief Administrative Officer, the County Auditor, the Board of Supervisors, Treasury Oversight Committee and any pool participants [Government Code 27133(e), and 53646(b)]. The report will include the following:

1. The type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the County Treasurer

2. A description of any of the local agency's funds, investments, or programs that are under the management of contracted parties, including lending programs.


3. A current market value as of the date of the report of all securities held by the local agency, and under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund, and the source of this same valuation.

4. A statement that the portfolio is in compliance with the investment policy, or the manner in which the portfolio is not in compliance.

5. A statement denoting the ability of the County Treasurer to meet its pool's expenditure requirements for the next six months, or an explanation as to why sufficient money may not be available.

6. Listing of individual securities by type and maturity date held at the end of the reporting period.

A. PLEDGE REPORT: Any securities that are pledged or loaned for any purpose shall be reported in the Quarterly Investment Report. The transaction detail will be provided, including purpose, beginning and termination dates and all parties to the contract. The security descriptions as to type, name, maturity date, coupon rate, CUSIP and other material information will be included.

B. REVERSE REPURCHASE AGREEMENTS REPORT: All reverse repurchase agreements entered into, whether active or inactive by the end of each quarter, shall be reported in the Treasurer’s Quarterly Investment Report.

7. Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over one‐year duration that are not intended to be held until maturity.

8. Average maturity and duration of portfolio on investments as well as the yield to maturity of the portfolio as compared to applicable benchmarks.

9. Percentage of the total portfolio which each type of investment represents.

10. Whatever additional information or data may be required by the legislative body of the local agency.

15.2 Marking to Market: The market value of the portfolio shall be calculated at least quarterly and a statement of the market value of the portfolio shall be issued at least quarterly. This will ensure that review of the investment portfolio, in terms of value and price volatility, has been performed on a regular basis.

16.0 COMPENSATION

In accordance with Government Code §§27013 and 53684, the County Treasurer will charge all pool participants for administrative and overhead costs. Costs include, but are not limited to, employee salaries and benefits, portfolio management, bank and custodial fees, software maintenance fees and other indirect costs incurred from handling and managing funds. In addition, when applicable, the costs associated with the Treasury Oversight provisions of Government Code §§ 27130‐27137 shall be included as administrative costs. Costs will be deducted from interest earnings on the pool prior to apportioning and payment of interest. The County Treasurer shall annually prepare a proposed budget providing a detailed itemization of all estimated costs which comprise the administrative fee charged in accordance with Government Code §27013. The administrative fee will be subject to change. Fees will be deducted from interest earnings.

16.1 Deduction of Costs: At the discretion of the County Treasurer, the County Treasurer may deduct actual administrative costs and may make any adjustments from the interest


earnings and apportions the remaining earnings to all participants based on the positive average daily balance (Government Code 53684(b)).

16.2 Directed Investments Costs: At the discretion of the County Treasurer, the County Treasurer may deduct from interest earnings the actual administrative costs of such directed investments (Government Code §27013).

17.0 CALCULATING AND APPORTIONING POOL EARNINGS

The Investment Pool Fund is comprised of monies from multiple units of the County, agencies, school districts and special districts. Each entity has unique cash flow demands, which dictate the type of investments the Treasurer’s Office may purchase. To ensure parity among the pool members when apportioning interest earnings, the following procedures have been developed:

1. Interest is apportioned on at least a quarterly basis in accordance with Government Code §53684.

2. Interest is apportioned to pool participants based on the participant’s average daily fund balance and the total average daily balance of deposits in the investment pool.

3. Interest is calculated on a cash basis for all investments in the County Treasurer’s investment pool and reported to the Auditor‐Controller for distribution into the funds of the participants.

4. Interest earned on the directed investments is credited to pool participants on a cash basis. Administrative costs are determined annually by the County Treasurer based on actual administrative and overhead costs incurred in the previous year.

5. Negative average daily fund balance will be charged interest at the rate of interest that is being apportioned.

18.0 DEPOSITS AND WITHDRAWALS IN THE TREASURY

18.1 Deposit by Voluntary Participants

Following are the terms and conditions for deposit of funds for investment purposes by voluntary participants, i.e. entities that are not legally required to deposit their funds in the County Treasury.

18.1.a Resolution by the County Board of Supervisors authorizing the acceptance of outside participants by the County Treasury.

18.1.b Resolution by the legislative or governing body of the local agency (voluntary participant) authorizing the investment of funds pursuant to Government Code 53684.

18.1.c Treasury investments will be directed transactions. For each transaction, the local agency (voluntary participant) must indicate the fund source, the amount to be invested and the duration of the investment.

18.2 Withdrawal Request

The Treasurer’s Office has established the Withdrawal of Funds Policy for all Treasury Investment Pool participants who seek to withdraw funds from the County Treasury Investment Pool for various purposes. In accordance with California State Government Code Section 27136, all participants having funds on deposit in the Pool and seeking to withdraw their funds, shall first submit a formal written request to the County Treasurer. The County Treasurer shall evaluate the withdrawal proposals of all Pool participants upon receipt of the written requests. The evaluation process may take up to 30 days. The County Treasurer reserves the right to reject any request for withdrawal if it is in the Treasurer’s opinion after thorough evaluation, that the


withdrawal will violate applicable laws and/or governing documents, compromise Treasurer’s fiduciary responsibility, adversely impact the stability of the Pool, or harm the interests of any Pool Participant. Such rejection shall prevent the withdrawal of the funds.

Typically, participants make withdrawals for the following two reasons: a) regular operations and b) investing or depositing funds outside the Pool in accordance with California State Government Code Section 27136 (a). The County Treasurer seeks to honor all written withdrawal requests for regular operating purposes that are approved by the County Auditor‐Controller’s Office in a timely fashion. However, the County Treasurer recognizes that occasionally the Pool participants may request large amounts in withdrawals to cover unexpected operational needs. To accommodate such withdrawals and allow for adequate time for adjustments to the liquidity position of the Pool, the County Treasurer expects all Pool Participants to submit their written requests within the following timeframes:

i) Withdrawals of Up to $1 million – prior to 8:00 a.m. for same day disbursement

ii) Withdrawals of between $1 million to $10 million – 1 business day in advance of disbursement

iii) Withdrawals of more than $10 million – 3 business day in advance of disbursement

Withdrawals of investment deposits from the County Treasury Investment Pool by any Pool participant shall coincide with investment maturities and/or authorized sale of securities by authorized personnel of the Pool Participant. Except for funds in the California State Local Agency Investment Fund, a five‐business‐days notification may be required when authorized sale of securities is involved. In the event that the Treasurer must liquidate investments in order to honor the withdrawal request, the Participant who requests the withdrawal shall be subject to all expenses associated with the liquidation, including, but not limited to loss of principal and interest income, withdrawal penalties, and associated fees.

To maintain full fiduciary responsibility for investment and administration of the Pool, the County Treasurer shall NOT permit statutory participants to withdraw funds from and subsequently deposit the funds outside the Pool for the purpose of investments without prior approval of the County Treasurer. As permitted by the Government Code Section 53635, upon request the County Treasurer may enter into an investment agreement with a third party investment manager on behalf of statutory participants. However, the funds shall remain in the Pool during the entire agreement period under the care of the custodian bank retained by the County Treasurer.

Voluntary participants may withdraw funds from and subsequently deposit the funds outside the Pool for investment purposes upon the County Treasurer’s approval. However, such withdrawals shall be made for the entire amount of the participant’s funds deposited in the Pool. Upon completion of such withdrawals, the voluntary participants will no longer be able to participate in the Pool or receive further services from the County Treasurer’s Office. NO partial withdrawals from the Pool for investment purposes are permitted.

Please refer to Withdrawal of Funds Policy, which is maintained as a separate document, for detailed guidelines and procedures.

19.0 TEMPORARY BORROWING OF POOL FUNDS

Section 6 of Article XVI of the California Constitution provides in part that "the treasurer of any city, county, or city and county shall have power and the duty to make such temporary transfers from the funds in custody as may be necessary to provide funds for meeting the obligations incurred for maintenance purposes by city, county, city and county, district, or other political subdivision whose funds are in custody and are paid out solely through the treasurer's office."


The County Auditor‐Controller and the County Treasurer shall make a temporary transfer of funds to the requesting agency, not to exceed 85% of the amount of money which will accrue to the agency during the fiscal year, provided that the amount of such transfer has been determined by the County Auditor‐Controller to be transferable under the constitutional and statutory provisions cited in Article XVI and has been certified by the County Treasurer‐Tax Collector to be available. Such temporary transfer of funds shall not be made prior to the first day of the fiscal year nor after the last Monday in April of the current fiscal year.

20.0 INVESTMENT OF BOND PROCEEDS

The County Treasurer shall invest bond proceeds using the standards of this Investment Policy. The bond proceeds will be invested in securities permitted by the bond documents. If the bond documents are silent, the bond proceeds will be invested in securities permitted by this Policy.

21.0 DISASTER RECOVERY PLAN

The Contra Costa County Treasurer’s Disaster Recovery Plan includes critical phone numbers and addresses of key personnel as well as active bankers and brokers/dealers. Laptops, tablets, smart phones, and other equivalent electronic devices shall be issued to key personnel for communicating between staff, bank and broker/dealers. Copies of the plan shall be distributed to the investment staff: Assistant County Treasurer, the Treasurer’s Investment Officer, and the Investment Operations Analyst. The investment staff shall interact with one another by home phone, cell phone, or e‐mail to decide an alternate location from which to conduct daily operations.

In the event investment staff is unable to conduct normal business operations, the custodial bank will automatically sweep all uninvested cash into an interest bearing account at the end of the business day. Until normal business operations have been restored, the limitations on the size of an individual issuer and the percentage restrictions by investment type would be allowed to exceed those approved in this investment policy.

22.0 POLICY CONSIDERATIONS

22.1 Exemption

Any investment currently held that does not meet the guidelines of this policy shall be

exempted from the requirements of this policy. At maturity or liquidation, such monies shall be

reinvested only as provided by this policy.

22.2 Amendments

This policy shall be reviewed on an annual basis. Any changes must be approved by the County

Treasurer and any other appropriate authority.


AUTHORIZATION FOR LAIF INVESTMENTS


APPROVED BROKERS

ABN AMRO, Incorporated Alamo Capital Bank of America Merrill Lynch Bank of the West Barclays Capital, Incorporated California Arbitrage Management Program Citigroup Global Markets Credit Suisse Daiwa Capital Markets America Inc. Goldman, Sachs & Company Government Perspectives JP Morgan Securities LLC Penserra Securities LLC Prudential Securities, Incorporated Public Financial Management, Incorporated RBC Capital Markets, LLC UBS Financial Services, Inc. UnionBanc Investment Services Wells Fargo Securities

Note: The County Treasury will not be limited to the above list. Others will be included as long as all conditions for authorized brokers and/or dealers set forth in this policy are met. Additionally, deletions and additions are based on many factors including the maintenance of required credit quality as rated by Standard and Poor’s, Moody’s and other recognized rating services and reliable financial sources.


APPROVED ISSUERS

Abbey National NA PepsiCo, Inc.

American Honda Finance PNC Bank NA

Australia & New Zealand Banking Group Prudential

Bank of Montreal Procter & Gamble Company

Bank of Nova Scotia Rabobank Nederland New York

BNP Paribas Royal Bank of Canada

Chevron Societe Generale North America

Coca‐Cola Co Standard Chartered Bank

Commonwealth Bank of Australia State Street Bank & Trust Co

Credit Agricole SA Svenska Handelsbanken AB

Deere & Company Toronto‐Dominion Bank

Deutsche Bank Financial LLC Toyota Motor Credit Corp

Exxon Mobil UBS Financial

General Electric Capital Corp Union Bank

General Electric Co US Bankcorp

JPMorgan Chase & Co Walmart

John Deere Capital Corporation Walt Disney Company

Johnson & Johnson Wells Fargo Bank NA

McDonald's Corporation Westpac Banking Corp

National Australia Bank Westamerica Bank

Nestle Capital Corp

Nordea Bank AB

Note: The County Treasury will not be limited to the above list in making investments. Other issuers may be considered as the County Treasury will perform additional due diligence on each investment decision. The list does not reflect the actual portfolio holdings managed by the County Treasury.


APPROVED PRIMARY DEALERS

Bank of Nova Scotia, New York Agency BMO Capital Markets Corp. BNP Paribas Securities Corp. Barclays Capital Inc. Cantor Fitzgerald & Co. Citigroup Global Markets, Inc. Credit Suisse Securities (USA) LLC Daiwa Capital Markets America Inc. Deutsche Bank Securities Inc. Goldman, Sachs & Co. HSBC Securities (USA) Inc. Jefferies & Company, Inc. J.P. Morgan Securities, Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Mizuho Securities USA Inc. Morgan Stanley & Co. Incorporated Nomura Securities Inc. RBC Capital Markets, LLC RBS Securities Inc. Societe Generale, New York Branch TD Securities (USA) LLC UBS Securities LLC. Wells Fargo Securities, LLC Note: The above list consists of primary dealers that serve as trading counterparties of the Federal Reserve Bank of New York in its implementation of monetary policy. These primary dealers are required to participate in all auctions of U.S. government debt. Treasury Staff will perform additional due diligence on each investment decision, and hence, may or may not use the primary dealers listed above.


CONFLICTOFINTERESTCODEFor the

TREASURER‐TAX COLLECTOR’S OFFICE

This Conflict of Interest Code is promulgated under the authority of the Political Reform Act, Government Code §81000, et seq., which requires all state and local government agencies to adopt and promulgate conflict of interest codes. Section 18730 of Title 2, Division 6 of the California Code of Regulations, as adopted by the Fair Political Practices Commission (FPPC) contains the terms of a standard conflict of interest code, which may be incorporated by reference and may be amended by the FPPC after public note and hearings to conform to amendments in the Political Reform Act.

Therefore, the terms of Section 18730 of Title 2, Division 6 of the California Code of Regulations and any amendments to it duly adopted by the FPPC are hereby incorporated by reference and, along with the below stated Disclosure Categories, constitute the Conflict of Interest Code of the Treasurer‐Tax Collector’s Office of Contra Costa County.

Employees in designated categories below shall file a Statement of Economic Interest (Form 700) with the filing officer, who will make the statements available for public inspection and reproduction. (California Government Code §81008)

DESIGNATED POSITIONS

CLASS/JOB CODE TITLE ASSIGNED CATEGORY

County Treasurer‐Tax Collector 1

Assistant County Treasurer 1

Chief Deputy Treasurer‐Tax Collector 1

Treasurer’s Investment Officer 1

Treasurer’ Investment Operations Analyst 1

Tax Operations Supervisor 1

Treasurer Oversight Committee members 2

DISCLOSURE CATEGORIES

General Rule

An investment, interest in real property, or income is reportable if the business entity in which the investment is held, the interest in real property, or the income or source of income may foreseeably be affected materially by any decision made or participated in by the designated employee by virtue of the employee’s position.

1. Designated Employees in Category “1” must report:

a. All investments, interests in real property, and income, and any business entity in which the employee is a director, officer, partner, trustee, employee, or hold any position in management. Financial interests are reportable only if located within Contra Costa County or if the business entity is doing business or planning to do business in the County (and such plans are known by the designated employee) or has done business within the County at any time during the two years prior to the filing of the statement.

b. Investments in any business entity, and income from any source and status as a director, officer, partner, trustee, employee, or hold of a position of management in any business entity, which has within the last two years contracted or foreseeably may contract with Contra Costa County, or with any special district or other public agency within the County, to provide services, supplies, materials, machinery or equipment to such County, district, or public agency.

2. Designated Employees in Category “2” must report:


Investments in any business entity, income from any source and status as a director, officer, partner, trustee, employee or holder of a position of management in any business entity, which has within the last two years contracted, or foreseeably may contract, with Contra Costa County to provide services, supplies, materials, machinery or equipment to the Office the Treasurer‐Tax Collector.


GLOSSARY OF TERMS

ACCRUED INTEREST The accumulated interest due on a bond as of the last interest payment made by

the issuer.

AGENCY A debt security issued by a federal or federally sponsored agency. Federal agencies are backed

by the full faith and credit of the U.S. Government. Federally sponsored agencies (FSAs) are backed by

each particular agency with a market perception that there is an implicit government guarantee. An

example of federal agency is the Government National mortgage Association (GNMA). An example of a

FSA is the Federal National Mortgage Association (FNMA).

AMORTIZATION The systematic reduction of the amount owed on a debt issue through periodic

payments of principal.

AVERAGE LIFE The average length of time that an issue of serial bonds and/or term bonds with a

mandatory sinking fund feature is expected to be outstanding.

BANKERS ACCEPTANCES A time bill of exchange drawn on and accepted by a commercial bank to

finance the exchange of goods. When a bank “accepts” such a bill, the time draft becomes, in effect, a

predated, certified check payable to the bearer at some future specified date. The commercial bank

assumes primary liability once the draft is accepted.

BASIS POINT A unit of measurement used in the valuation of fixed‐income securities equal to 1/100 of

one percent of yield. For example, if interest rates increase from 8.25% to 8.50%, the difference is

referred to as a 25‐basis‐point increase.

BENCHMARK A comparative base for measuring the performance or risk tolerance of the investment

portfolio. A benchmark should represent a close correlation to the level of risk and the average duration

of the portfolio’s investment.

BID The indicated price at which a buyer is willing to purchase a security or commodity.

BLUE SKY LAWS Common term for state securities law, which vary from state to state. Generally refers

to provision related to prohibitions against fraud, dealer and broker regulations and securities

registration.

BOND A bond is essentially a loan made by an investor to a division of the government, a government

agency or a corporation. The bond is a promissory note to repay the loan in full at the end of a fixed

time period. The date on which the principal must be repaid is called the maturity date or maturity. In

addition, the issuer of the bond, that is the agency or corporation receiving the loan proceeds and

issuing the promissory note, agrees to make regular payments of interest at a rate initially stated on the

bond. Bonds are rated according to many factors, including cost, degree of risk and rate of income.

BOOK VALUE Refers to value of a held security as carried in the records of an investor. May differ from

current market value of the security.


BROKER/DEALER Any person engaged in the business of effecting transaction in securities in this state

for the account of others or for her/his own account. Broker/dealer also includes a person engaged in

the regular business of issuing or guaranteeing options with regard to securities not of her/his own

issue.

CALLABLE BOND A bond issue in which all or part of its outstanding principal amount may be redeemed

before maturity by the issuer under specified conditions.

CALL PRICE The price at which an issuer may redeem a bond prior to maturity. The price is usually at a

slight premium to the bond’s original issue price to compensate the holder for the loss of income and

ownership.

CALL RISK The risk to the bondholder that a bond may be redeemed prior to maturity.

CASH SALE/PURCHASE A transaction which calls for delivery and payment of securities on the same day

that the transaction is initiated.

CERTIFICATES OF DEPOSIT (CD) Certificates issued against funds deposited in a commercial bank for a

definite period of time and earning a specified rate of return. They are issued in two forms, negotiable

and non‐negotiable.

CLEAN UP CALL An action of a debt instrument issuer requiring early redemption of the instrument to

reduce its own administrative expenses. This normally occurs when the principal outstanding is

significantly reduced to a small amount, e.g., less than 10% of the original issue.

COLLATERALIZATION Process by which a borrower pledges securities, property, or other deposits for

the purpose of securing the repayment of a loan and/or security.

COMMERCIAL PAPER Short‐term, unsecured promissory notes issued in either registered or bearer

form and usually backed by a line of credit with a bank. Maturities do not exceed 270 days and generally

average 30‐45 days.

CONVEXITY A measure of a bond’s price sensitivity to changing interest rates. A high convexity

indicates greater sensitivity of a bond’s price to interest rate changes.

COUPON RATE The annual rate of interest received by an investor from the issuer of certain types of

fixed‐income securities. Also known as the “interest rate.”

CREDIT QUALITY The measurement of the financial strength of a bond issuer. This measurement helps

an investor to understand an issuer’s ability to make timely interest payments and repay the loan

principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest

rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by

nationally recognized rating agencies.

CREDIT RISK The risk to an investor that an issuer will default in the payment of interest and/or

principal on a security.

CURRENT YIELD (CURRENT RETURN) A yield calculation determined by dividing the annual interest

received on a security by the current market price of that security.


CUSIP NUMBERS CUSIP is an acronym for Committee on Uniform Security Identification Procedures.

CUSIP numbers are identification numbers assigned each maturity of a security issue and usually printed

on the face of each individual security in the issue. The CUSIP numbers are intended to facilitate

identification and clearance of securities.

DELIVERY VERSUS PAYMENT (DVP) A type of securities transaction in which the purchaser pays for the

securities when they are delivered either to the purchaser or his/her custodian.

DERIVATIVE SECURITY Financial instrument created from, or whose value depends upon, one or more

underlying assets or indexes of asset values.

DISCOUNT The amount by which the par value of a security exceeds the price paid for the security.

DIVERSIFICATION A process of investing assets among a range of security types by sector, maturity, and

quality rating.

DURATION A measure of the timing of the cash flows, such as the interest payments and the principal

repayment, to be received from a given fixed‐income security. This calculation is based on three

variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful

indicator of its price volatility for given changes in interest rates.

EARNINGS APPORTIONMENT The quarterly interest distribution of the Pool Participants where the

actual investment costs incurred by the Treasurer are deducted from the interest earnings of the Pool

FAIR VALUE The amount at which an investment could be exchanged in a current transaction between

willing parties, other than in a forced or liquidation sale.

FEDERAL FUNDS (FED FUNDS) Funds placed in Federal Reserve banks by depository institutions in

excess of current reserve requirements. These depository institutions may lend fed funds to each other

overnight or on a longer basis. They may also transfer funds among each other on a same‐day basis

through the Federal Reserve banking system. Fed funds are considered to be immediately available

funds.

FEDERAL FUNDS RATE Interest rate charged by one institution lending federal funds to the other.

FEDERAL OPEN MARKET COMMITTEE (FOMC) This committee sets Federal Reserve guidelines

regarding purchases and sales of government securities in the open market as a means of influencing

the volume of bank credit and money.

FIDUCIARY An individual who holds something in trust for another and bears liability for its safekeeping.

FLOATING RATE NOTE A debt security whose interest rate is reset periodically (monthly, quarterly,

annually) and is based on a market index (e.g., Treasury bills, LIBOR, etc.).

FUTURES Commodities and other investments sold to be delivered at a future date.

GOVERNMENT SECURITIES An obligation of the U.S. government, backed by the full faith and credit of

the government. These securities are regarded as the highest quality of investment securities available

in the U.S. securities market. See “Treasury Bills, Notes and Bonds.”


INTEREST RATE See “Coupon Rate.”

INTERNAL CONTROLS An internal control structure is designed to ensure that the assets of the

Treasurer’s Investment Pool are protected from loss, theft, or misuse, and to provide reasonable

assurance that this objective is met. The concept of reasonable assurance recognizes that (1) the cost of

a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits

requires estimates and judgments by management.

Internal controls should address the following points:

1. Control of collusion—Collusion is a situation where two or more employees are working in

conjunction to defraud their employer.

2. Separation of transaction authority from accounting and record keeping—By separating the

person who authorizes or performs the transaction from the people who record or otherwise

account for the transaction, a separation of duties is achieved.

3. Custodial safekeeping—Securities purchased from a bank or dealer including appropriate

collateral (as defined by state law) shall be placed with an independent third party for custodial

safekeeping.

4. Avoidance of physical delivery securities—Book‐entry securities are much easier to transfer and

account for since actual delivery of a document never takes place. Delivered securities must be

properly safeguarded against loss or destruction. The potential for fraud and loss increases with

physically delivered securities.

5. Clear delegation of authority to subordinate staff members—Subordinate staff members must

have a clear understanding of their authority and responsibilities to avoid improper actions. Clear

delegation of authority also preserves the internal control structure that is contingent on the

various staff positions and their respective responsibilities.

6. Written confirmation of transactions for investments and wire transfers—Due to the potential for

error and improprieties arising from telephone and electronic transactions, all transactions should

be supported by written communications and approved by the appropriate person. Written

communications may be via fax if on letterhead and if the safekeeping institution has a list of

authorized signatures.

7. Development of a wire transfer agreement with the lead bank and third‐party custodian—The

designated official should ensure that an agreement will be entered into and will address the

following points: controls, security provisions, and responsibilities of each party making and

receiving wire transfers.

INVERSE FLOATERS An adjustable interest rate note keyed to various indices such as LIBOR, commercial

paper, federal funds, treasuries and derivative structures. The defined interest rate formula is the

opposite or inverse of these indices. Interest rates and pay dates may reset daily, weekly, monthly,

quarterly, semi‐annually or annually.

INVERTED YIELD CURVE A chart formation that illustrates long‐term securities having lower yields than

short‐term securities. This configuration usually occurs during periods of high inflation coupled with low

levels of confidence in the economy and a restrictive monetary policy.

INVESTMENT COMPANY ACT OF 1940 Federal legislation which sets the standards by which investment

companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance

reporting requirements, and securities valuations.


INVESTMENT POLICY A concise and clear statement of the objectives and parameters formulated by

the investor or investment manager for a portfolio of investment securities.

INVESTMENT‐GRADE OBLIGATIONS An investment instrument suitable for purchase by institutional

investors under the prudent person rule. Investment‐grade is restricted to those obligations rated BBB

or higher by a rating agency.

LIQUIDITY Usually refers to the ability to convert assets (such as investments) into cash.

LOCAL AGENCY INVESTMENT FUND (LAIF) The State of California investment pool in which money of

local agencies is pooled as a method for managing and investing local funds.

MAKE WHOLE CALL A type of call provision on a bond allowing the borrower to pay off remaining debt

early. The borrower has to make a lump sum payment derived from a formula based on the net present

value of future coupon payments that will not be paid because of the call.

MARK TO MARKET Valuing the inventory of held securities at its current market value.

MARKET RISK The risk that the value of a security will rise or decline as a result of changes in market

conditions.

MARKET VALUE Price at which a security can be traded in the current market.

MASTER REPURCHASE AGREEMENT A written contract covering all future transactions between the

parties to repurchase‐reverse repurchase agreements that establishes each party’s rights in the

transaction. A master agreement will often specify, among other things, the right of the buyer‐lender to

liquidate the underlying securities in the event of default by the seller‐borrower.

MATURITY The date upon which the principal of a security becomes due and payable to the holder.

MEDIUM‐TERM NOTES (MTNS) Corporate debt obligations continuously offered in a broad range of

maturities. MTNs were created to bridge the gap between commercial paper and corporate bonds. The

key characteristic of MTNs is that they are issued on a continuous basis.

MONEY MARKET INSTRUMENTS Private and government obligations of one year or less.

MONEY MARKET MUTUAL FUNDS Mutual funds that invest solely in money market instruments (short‐

term debt instruments, such as Treasury bills, commercial paper, banker’s acceptances, repos and

federal funds).

MUTUAL FUND An investment company that pools money and can invest in a variety of securities,

including fixed‐income securities and money market instruments. Mutual funds are regulated by the

Investment Company Act of 1940 and must abide by the following Securities and Exchange Commission

(SEC) disclosure guidelines:

1. Report standardized performance calculations.

2. Disseminate timely and accurate information regarding the fund’s holdings, performance,

management and general investment policy.

3. Have the fund’s investment policies and activities supervised by a board of trustees, which are

independent of the adviser, administrator or other vendor of the fund.


4. Maintain the daily liquidity of the fund’s shares.

5. Value their portfolios on a daily basis.

6. Have all individuals who sell SEC‐registered products licensed with a self‐regulating organization

(SRO) such as the National Association of Securities Dealers (NASD).

7. Have an investment policy governed by a prospectus which is updated and filed by the SEC

annually.

MUTUAL FUND STATISTICAL SERVICES Companies that track and rate mutual funds, e.g.,

IBC/Donoghue, Lipper Analytical Services and Morningstar.

NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD) A self‐regulatory organization (SRO) of

brokers and dealers in the over‐the counter securities business. Its regulatory mandate includes

authority over firms that distribute mutual fund shares as well as other securities.

NEGOTIABLE CERTIFICATES OF DEPOSIT May be sold by one holder to another prior to maturity. This is

possible because the issuing bank agrees to pay the amount of the deposit plus interest earned to the

bearer of the certificate at maturity.

NET ASSET VALUE The market value of one share of an investment company, such as a mutual fund.

This figure is calculated by totaling a fund’s assets which includes securities, cash, and any accrued

earnings, subtracting this from the fund’s liabilities and dividing this total by the number of shares

outstanding. This is calculated once a day based on the closing price for each security in the fund’s

portfolio. (See below)

[(Total assets) – (Liabilities]/(Number of shares outstanding)

NO LOAD FUND A mutual fund which does not levy a sales charge on the purchase of its shares.

NOMINAL YIELD The stated rate of interest that a bond pays its current owner, based on par value of

the security. It is also known as the “coupon,” “coupon rate,” or “interest rate.”

NON‐NEGOTIABLE CERTIFICATES OF DEPOSIT For public funds, these certificates are collateralized and

are not money market instruments since they cannot be traded in the secondary market. They are

issued on a fixed‐maturity basis and often pay higher interest rates than are permissible on other

savings or time‐deposit accounts.

OFFER The price of a security at which a person is willing to sell.

OPTION A contract that provides the right, but not the obligation, to buy or to sell a specific amount of

a specific security within a predetermined time period. A call option provides the right to buy the

underlying security. A put option provides the right to sell the underlying security. The seller of the

contracts is called the writer.

PAR Face value of principal value of a bond, typically $1,000 per bond.

PAR VALUE The stated or face value of a security expressed as a specific dollar amount marked on the

face of the security; the amount of money due at maturity. Par value should not be confused with

market value.


POSITIVE YIELD CURVE A chart formation that illustrates short‐term securities having lower yields than

long‐term securities.

PREMIUM The amount by which the price paid for a security exceeds par value, generally representing

the difference between the nominal interest rate and the actual or effective return to the investor.

PRIME RATE A preferred interest rate charged by commercial banks to their most creditworthy

customers. Many interest rates are keyed to this rate.

PRINCIPAL The face value or par value of a debt instrument. Also may refer to the amount of capital

invested in a given security.

PROSPECTUS A legal document that must be provided to any prospective purchaser of a new securities

offering registered with the SEC. This can include information on the issuer, the issuer’s business, the

proposed use of proceeds, the experience of the issuer’s management, and certain certified financial

statements.

PRUDENT PERSON RULE An investment standard outlining the fiduciary responsibilities of public funds

investors relating to investment practices.

RANGE NOTES A security whose rate of return is pegged to an index. The note defines the interest rate

minimum or floor and the interest rate maximum or cap. An example of an index may be federal funds.

The adjustable rate of interest is determined within the defined range of the funds.

RATE OF RETURN The yield obtainable on a security based on its purchase price or its current market

price. This may be the amortized yield to maturity on a bond and the current income return.

REINVESTMENT RISK The risk that a fixed‐income investor will be unable to reinvest income proceeds

from a security holding at the same rate of return currently generated by that holding.

REPURCHASE AGREEMENT OR RP OR REPO An agreement consisting of two simultaneous transactions

whereby the investor purchases securities from a bank or dealer and the bank or dealer agrees to

repurchase the securities at the same price on a certain future date. The interest rate on a RP is that

which the dealer pays the investor for the use of his funds. Reverse repurchase agreements are the

mirror image of the RPs when the bank or dealer purchases securities from the investor under an

agreement to sell them back to the investor.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO) An agreement of one party to sell securities at a

specified price to a second party and a simultaneous agreement of the first party to repurchase the

securities at a specified price or at a specified later date.

RULE 2A‐7 OF THE INVESTMENT COMPANY ACT Applies to all money market mutual funds and

mandates such funds to maintain certain standards, including a 13‐month maturity limit and a 90‐day

average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).

SAFEKEEPING Holding of assets (e.g., securities) by a financial institution.

SECURITIES LENDING A transaction wherein the Treasurer’s Pool transfers its securities to a

broker/dealer or other entities for collateral which may be cash or securities and simultaneously agrees

to return the collateral for the same securities in the future.


SERIAL BOND A bond issue, usually of a municipality, with various maturity dates scheduled at regular

intervals until the entire issue is retired.

SETTLEMENT DATE The date used in price and interest computations, usually the date of delivery.

SINKING FUND Money accumulated on a regular basis in a separate custodial account that is used to

redeem debt securities or preferred stock issues.

SLUGS An acronym for State and Local Government Series. SLUGS are special United States Government

securities sold by the Secretary of the Treasury to states, municipalities and other local government

bodies through individual subscription agreements. The interest rates and maturities of SLUGS are

arranged to comply with arbitrage restrictions imposed under Section 103 of the Internal Revenue Code.

SLUGS are most commonly used for deposit in escrow in connection with the issuance of refunding

bonds.

STRIPS US Treasury acronym for “separate trading of registered interest and principal of securities."

Certain registered Treasury securities can be divided into separate interest and principal components,

which may then be traded as separate entities.

SUPRANATIONAL Supranational is an international organization, or union, whereby member states

transcend national boundaries or interests to share in the decision‐making and vote on issues pertaining

to the wider grouping. Examples of supranational are International Bank for Reconstruction and

Development, International Finance Corporation, European Union, and World Trade Organization.

SWAP Generally refers to an exchange of securities, with essentially the same par value, but may vary in

coupon rate, type of instrument, name of issuer and number of days to maturity. The purpose of the

SWAP may be to enhance yield, to shorten the maturity or any benefit deemed by the contracting

parties.

TERM BONDS Bonds comprising a large part or all of a particular issue which come due in a single

maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory

redemption of term bonds before maturity.

TOTAL RETURN The sum of all investment income plus changes in the capital value of the portfolio. For

mutual funds, return on an investment is composed of share price appreciation plus any realized

dividends or capital gains. This is calculated by taking the following components during a certain time

period: (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return

TREASURY SECURITIES Debt obligations of the United States Government sold by the Treasury

Department in the form of bills, notes and bonds:

1. Bills Short‐term obligations that mature in one year or less and are sold at a discount in lieu of

paying periodic interest.

2. Notes Interest‐bearing obligations that mature between one year and 10 years.

3. Bonds Interest‐bearing long‐term obligations that generally mature in 10 years or more.

UNIFORM NET CAPITAL RULE SEC Rule 15C3‐1 outlining capital requirements for broker/dealers.


U.S. AGENCY OBLIGATIONS Federal agency or United States government‐sponsored enterprise

obligations, participants, or other instruments. The obligations are issued by or fully guaranteed as to

principal and interest by federal agencies or United States government‐sponsored enterprises.

U.S. TREASURY OBLIGATIONS Securities issued by the U.S. Treasury and backed by the full faith and

credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for

interest rates on all other securities in the U.S. and overseas. The Treasury issues both discounted

securities and fixed coupon notes and bonds.

VOLATILITY A degree of fluctuation in the price and valuation of securities.

“VOLATILITY RISK” RATING A rating system to clearly indicate the level of volatility and other non‐credit

risks associated with securities and certain bond funds. The ratings for bond funds range from those

that have extremely low sensitivity to changing market conditions and offer the greatest stability of the

returns (“S1+” by S&P) to those that are highly sensitive with currently identifiable market volatility risk

(“S6” by S&P).

WEIGHTED AVERAGE MATURITY (WAM) The average maturity of all the securities that comprise a

portfolio. According to SEC rule 2a‐7, the WAM for SEC registered money market mutual funds may not

exceed 90 days and no one security may have a maturity that exceeds 397 days.

WHEN ISSUED (WI) A conditional transaction in which an authorized new security has not been issued.

All “when issued” transactions are settled when the actual security is issued.

YIELD The current rate of return on an investment security generally expressed as a percentage of the

security’s current price.

YIELD‐TO‐CALL (YTC) The rate of return an investor earns from a bond assuming the bond is redeemed

(called) prior to its nominal maturity date.

YIELD CURVE A graphic representation that depicts the relationship at a given point in time between

yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may

be alternatively referred to as a positive yield curve.

YIELD‐TO‐MATURITY The rate of return yielded by a debt security held to maturity when both interest

payments and the investor’s potential capital gain or loss are included in the calculation of return.

ZERO‐COUPON SECURITY A security that makes no periodic interest payments but instead is sold at a

discount from its face value.

CONTRA COSTA COUNTY

TREASURER’S QUARTERLY INVESTMENT REPORT

AS OF JUNE 30, 2016

TABLE OF CONTENTS

Page I. Executive Summary 1 II. Contra Costa County Investment Pool Summary 2 III. Appendix

A. Investment Portfolio Detail—Managed by Treasurer’s Office 1. Portfolio Summary 5

2. Portfolio Detail 8

3. Market Valuation Sources 38

B. Investment Portfolio Detail – Managed by Outside Contracted Parties 1. State of California Local Agency Investment Fund

a. Summary 39

2. Asset Management Funds a. Wells Capital Management 40 b. CalTRUST 74

3. East Bay Regional Communications System Authority (EBRCS) a. Summary 79

EXECUTIVE SUMMARY The Treasurer's investment portfolio is in compliance with Government Code

53600 et. seq.. The Treasurer's investment portfolio is in compliance with the Treasurer's

current investment policy. The Treasurer’s investment portfolio has no securities lending, reverse

repurchase agreements or derivatives. As of 6/30/16, the fair value of the Treasurer’s investment portfolio was

100.25% of the cost. More than 77 percent of the portfolio or over $2.56 billion will mature in less than a year. Historical activities combined with future cash flow projections indicate that the County is able to meet its cash flow needs for the next six months.

Treasurer’s Investment Portfolio Characteristics

Par $3,318,656,801.66 Cost $3,316,430,137.38 Market Value $3,324,733,399.00 Weighted Yield to Maturity 0.84% Weighted Average Days to Maturity 227 days Weighted Duration 0.62 year

Page 1

PERCENT OF

TYPE PAR VALUE COST FAIR VALUE TOTAL COST

A. Investments Managed by Treasurer's Office

1. U.S. Treasuries (STRIPS, Bills, Notes) $27,440,000.00 $27,656,200.60 $27,858,002.70 0.83%

2. U.S. Agencies

Federal Home Loan Banks 243,865,000.00 244,069,975.36 245,256,349.75 7.36%

Federal National Mortgage Association 103,032,000.00 103,564,461.57 104,045,105.40 3.12%

Federal Farm Credit Banks 201,305,000.00 201,066,463.59 202,585,604.51 6.06%

Federal Home Loan Mortgage Corporation 192,470,000.00 192,666,741.58 193,316,403.85 5.81%

Municipal Bonds 1,990,000.00 2,122,157.78 1 2,122,157.78 1 0.06%

Subtotal 742,662,000.00 743,489,799.88 747,325,621.29 22.42%

3. Supranationals - International Government 35,000,000.00 34,981,445.84 35,172,350.00 1.05%

4. Money Market Instruments

Commercial Paper 1,032,625,000.00 1,028,534,883.61 1,031,229,380.45 31.01%

Negotiable Certificates of Deposit 747,845,000.00 747,842,285.49 748,192,291.10 22.55%

Medium Term Certificates of Deposit 2,175,000.00 2,175,000.00 1 2,158,491.75 1 0.07%

Money Market Accounts 565,318.32 565,318.32 565,318.32 0.02%

Time Deposit 3,335.77 3,335.77 3,330.04 0.00%

Subtotal 1,783,213,654.09 1,779,120,823.19 1,782,148,811.66 53.65%

5. Asset Backed Securities/Mortgage Backed Securities 6,893,621.96 6,922,577.37 1 6,920,916.58 1 0.21%

6. Corporate Notes 141,512,000.00 142,096,714.65 142,978,951.45 4.28%

TOTAL (Section A.) 2,736,721,276.05 2,734,267,561.53 2,742,404,653.68 82.45%

B. Investments Managed by Outside Contractors

1. Local Agency Investment Fund 206,784,102.55 206,784,102.55 206,912,561.38 2 6.24%

2. Other

a. EBRCS Bond 2,232,756.90 2,232,756.90 2,232,756.90 0.07%

b. Wells Capital Management 44,153,336.92 44,380,387.16 44,418,097.80 3 1.34%

c. CalTRUST (Short-Term Fund) 133,744,078.96 133,744,078.96 133,744,078.96 4.03%

Subtotal 180,130,172.78 180,357,223.02 180,394,933.66 5.44%

TOTAL (Section B.) 386,914,275.33 387,141,325.57 387,307,495.04 11.67%

C. Cash 195,021,250.28 195,021,250.28 195,021,250.28 5.88%

4GRAND TOTAL (FOR A , B, & C) $3,318,656,801.66 $3,316,430,137.38 $3,324,733,399.00 100.00%

Notes:

1. Fair Value equals Cost less Purchase Interest

2. Estimated Fair Value

3. Base Market Value plus Accrued Interest

4. Does not include the Futuris Public Entity Trust of the Contra Costa Community College District Retirement Board of Authority

CONTRA COSTA COUNTY INVESTMENT POOL As of June 30, 2016

Page 2

CONTRA COSTA COUNTYINVESTMENT POOL

AT A GLANCEAS OF JUNE 30, 2016

NOTES TO INVESTMENT PORTFOLIO SUMMARY AND AT A GLANCE AS OF JUNE 30, 2016

1. All report information is unaudited but due diligence was utilized in its preparation.2. There may be slight differences between the portfolio summary page and the attached exhibits and statements for investments managed by outside contractors or trustees.

The variance is due to the timing difference in recording transactions associated with outside contracted parties during interim periods and later transmitted to the appropriate county agency and/or the Treasurer’s Office. In general, the Treasurer’s records reflect booked costs at the beginning of a period.

3. All securities and amounts included in the portfolio are denominated in United States Dollars.4. The Contra Costa County investment portfolio maintains Standard & Poor's highest credit quality rating of AAAf and lowest volatility of S1+. The portfolio consists of a large portion of short-term investments with credit rating of A-1/P-1 or better. The majority of the long-term investments in the portfolio are rated AA or better.5. In accordance with Contra Costa County's Investment Policy, the Treasurer's Office has constructed a portfolio that safeguards the principal, meets the liquidity needs and achieves a return. As a result, more than 77% of the portfolio will mature in less than a year with a weighted average maturity of 227 days.

U.S. Treasuries0.83%U.S.Agencies-

Federal, State and Local

22.42%

Supranationals1.05%

Money Market53.65%

ABS/MBS0.21%

Corporate Notes4.28%

Outside Contractors-LAIF

6.24%

Outside Contractors-Other

5.44%

Cash5.88%

PORTFOLIO BREAKDOWNBY INVESTMENT

77.19%

11.19% 9.27%

1.76% 0.59%$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

1 yr & less 1 to 2 yrs 2 to 3 yrs 3 to 4 yrs 4+ yrs

MATURITY DISTRIBUTION

AAA1.02%

AA+24.64%

AA10.97%

AA‐1.87%A+

0.95%A

0.86%A‐

0.31%

A‐1+8.52%

A‐144.70%

NR (CASH)5.88%

NR (Misc.)0.19%

BBB+0.09%

PORTFOLIO CREDIT QUALITY

0.840%

0.904%

0.550%

0.701% 0.730%

0.350%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

Total Treasurer LAIF Wells CalTRUST Cash

YIELD TO MATURITY BY PORTFOLIO

Note: Total is 100% of the portfolio; Treasurer‐83%; LAIF‐6%; Wells Cap‐1%; CalTRUST‐4% and Cash‐6%

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16

QUARTERLY WEIGHTED YIELD TO MATURITY

YTM

County&Agencies41.85%

School Dist.39.53%

Community College Dist.

11.85%

Voluntary Participants

6.77%

POOL BALANCE BY PARTICIPANTS

Note: More than 45% of the School Dist. funds from the bond proceeds

Page 3

Note:All data provided by Bloomberg

MAJOR MARKET AND ECONOMIC DATA

AS OF JUNE 30, 2016

0

1

2

3

4

5

6

7

8

06/96 06/99 06/02 06/05 06/08 06/11 06/14

Percentage

TREASURY YIELDS AND FED TARGET RATE

US 2‐YR TREASURY YIELD US 5‐YR TREASURY YIELD FEDERAL FUND TARGET RATE

‐10

‐8

‐6

‐4

‐2

0

2

4

6

8

10

06/30/1606/30/1306/30/1006/30/0706/30/0406/30/0106/30/98

Percentage

GROSS DOMESTIC PRODUCT

GDP QoQ Change

‐2

‐1

0

1

2

3

4

5

6

Jun‐16Jun‐14Jun‐12Jun‐10Jun‐08Jun‐06Jun‐04Jun‐02Jun‐00Jun‐98Jun‐96

Percentage

CONSUMER PRICE INDEX

CPI YoY Change Core CPI YoY Change

0

2

4

6

8

10

12

14

16

18

20

Jun‐97 Jun‐99 Jun‐01 Jun‐03 Jun‐05 Jun‐07 Jun‐09 Jun‐11 Jun‐13 Jun‐15

Percentage

EMPLOYMENT RELATED RATES

Unemployment Rate Underemployment Rate

Page 4

SECTION III

APPENDIX

A. INVESTMENT PORTFOLIO DETAIL - MANAGED BY TREASURER’S OFFICE

Inventory by Market Value

Contra Costa County

As Of Date: 06/30/2016

Run: 07/08/2016 12:11:45 PMDate Basis: Settlement

Reporting Currency: Local

AvantGard APS2 Page 1 of 3

Subtotal .535000 1,000,000.00 997,888.89 2,125.14 861.11

.537741 994,902.64 99.788889 0.00

Inv Type: 28 FHLMC DISCOUNT NOTES

Subtotal 1.049830 199,835,000.00 201,116,557.51 379,899.45 1,522,450.73

1.092359 199,603,409.84 100.641308 -4,514.14

Inv Type: 27 FEDERAL FARM CREDIT BANKS

1.377838 2,879,735.88 100.999615 0.00

Subtotal 1.716709 2,849,590.16 2,878,075.09 4,076.54 0.00

Inv Type: 26 AGENCY ABS FXD-M 30/360

Subtotal 1.253842 102,487,000.00 103,501,529.35 359,695.29 763,241.32

1.078398 103,022,006.63 100.989910 -234,370.96

Inv Type: 23 FEDERAL NATIONAL MORTGAGE ASSO

Subtotal 1.031463 243,865,000.00 245,256,349.75 364,460.82 1,284,258.64

.930508 244,069,975.36 100.570541 -97,884.25

Inv Type: 22 FEDERAL HOME LOAN BANKS

Subtotal 1.261617 27,440,000.00 27,858,002.70 76,312.67 221,470.99

1.013967 27,656,200.60 101.523333 -6,810.42

Inv Type: 12 TREASURY NOTES

Subtotal 1.017109 35,000,000.00 35,172,350.00 116,062.50 219,550.00

1.069565 34,981,445.84 100.492429 0.00

Inv Type: 1 SUPRANATIONALS

Inv. Description CUSIP Purchase Coupon Current Par /Share Market Value Curr Accr Int Unrealized Gain

No. Maturity YTM TR Current Book Market Price Price Source Unrealized Loss

Page 5


Contra Costa County

As Of Date: 06/30/2016




Subtotal .811041 1,032,625,000.00 1,031,229,380.45 1,995,783.06 698,719.78

.814347 1,028,534,883.61 99.864847 -6.00

Inv Type: 71 COMMERCIAL PAPER DISCOUNT

Subtotal 1.020000 600,000.00 599,179.69 2,193.00 0.00

1.083588 599,179.69 99.863282 0.00

Inv Type: 53 CREDIT ABS FXD-SA 30/360

Subtotal 1.212290 3,444,031.80 3,443,661.80 1,807.48 0.00

1.217173 3,443,661.80 99.989257 0.00

Inv Type: 50 AUTO ABS FXD-M 30/360

Subtotal .472739 1,470,000.00 1,469,047.00 5,268.31 724.94

.475034 1,463,053.75 99.935170 0.00

Inv Type: 42 FARM CREDIT DISCOUNT NOTES

Subtotal .482480 545,000.00 543,576.05 991.86 129.25

.488157 542,454.94 99.738725 0.00

Inv Type: 41 FNMA DISCOUNT NOTES

Subtotal 3.128212 1,990,000.00 2,122,157.78 21,485.38 0.00

1.550194 2,122,157.78 106.641094 0.00

Inv Type: 31 MUNICIPAL BONDS

Subtotal 1.050692 191,470,000.00 192,318,514.96 378,998.52 784,346.18

1.001066 191,671,838.94 100.443158 -136,191.00

Inv Type: 29 FHLMC NOTES



Page 6


Contra Costa County

As Of Date: 06/30/2016




.600000 3,335.77 99.828226 -5.73

Subtotal .600000 3,335.77 3,330.04 42.75 0.00

Inv Type: 1000 TD WITH CALC CODE OF CSC-00

.000000 565,318.32 100.000000 0.00

Subtotal .000000 565,318.32 565,318.32 0.00 0.00

Inv Type: 99 MONEY MARKET ACCOUNTS

1.171259 3,515,000.00 100.000000 0.00

Subtotal 1.171259 3,515,000.00 3,515,000.00 4,856.66 0.00

Inv Type: 80 YCD / NCD QTR FLTR

1.278261 8,596,780.00 99.609579 -30,356.17

Subtotal 1.265482 8,600,000.00 8,566,423.83 23,530.19 0.00

Inv Type: 79 YCD/NCD 30/360

1.452099 142,096,714.65 101.036627 -309,015.25

Subtotal 1.676132 141,512,000.00 142,978,951.45 638,776.40 1,208,079.65

Inv Type: 75 CORPORATE NOTES

1.000000 2,175,000.00 99.241000 -16,508.25

Subtotal 1.000000 2,175,000.00 2,158,491.75 15,225.00 0.00

Inv Type: 74 CERT OF DEPOSIT MEDIUM TERM

.793976 735,730,505.49 100.051767 0.00

Subtotal .794145 735,730,000.00 736,110,867.27 2,014,716.33 380,361.78

Inv Type: 72 NEGOTIABLE CERT OF DEPOSIT

Grand Total Count 452 .934068 2,736,721,276.05 2,742,404,653.68 6,406,307.35 7,084,194.37

.904275 2,734,267,561.53 100.207671 -835,662.17



Page 7


Contra Costa County

As Of Date: 06/30/2016




82755 CCCCD GOV US TREASU 912828F39 10/14/2015 1.750000 185,000.00 190,788.65 813.80 2,081.42

09/30/2018 .940653 3,969,612.50 101.652000 IDC-FIS 0.00

09/30/2019 1.230157 188,707.23 103.129000 IDC-FIS 0.00

02/29/2020 1.550966 118,500.00 101.492000 IDC-FIS 0.00

82786 CCCCD GOV US TREAS 912828UQ1 11/09/2015 1.250000 120,000.00 121,790.40 501.36 3,290.40

82754 CCCSIG GOV US TREAS 912828RH5 10/14/2015 1.375000 3,920,000.00 3,984,758.40 13,548.63 15,145.90

82710 CCCCD GOV US TREASU 912828UU2 09/29/2015 .750000 1,700,000.00 1,704,641.00 3,204.91 9,289.44

06/30/2020 1.499897 198,389.65 103.828000 IDC-FIS 0.00

03/31/2018 .860670 1,695,351.56 100.273000 IDC-FIS 0.00

03/31/2017 .545225 1,691,418.75 100.371000 IDC-FIS -5,185.95

82711 CCCCD GOV US TREASU 912828SM3 09/29/2015 1.000000 1,680,000.00 1,686,232.80 4,222.95 0.00

10/31/2018 1.148190 1,548,873.61 101.387000 IDC-FIS 0.00

82789 CCCSIG GOV US TREAS 912828WD8 11/09/2015 1.250000 1,545,000.00 1,566,429.15 3,253.75 17,555.54

07/31/2018 .916641 86,195.31 101.570000 IDC-FIS 0.00

82460 CCCSIG GOV US TREAS 912828F39 03/27/2015 1.750000 360,000.00 371,264.40 1,583.61 5,836.27

82679 CCCCD GOV US TREASU 912828VJ6 09/03/2015 1.875000 195,000.00 202,464.60 9.94 4,074.95

82377 CCCCD GOV US TREASU 912828VQ0 02/04/2015 1.375000 85,000.00 86,334.50 488.03 139.19

09/30/2019 1.403864 365,428.13 103.129000 IDC-FIS 0.00

82577 CCCCD GOV US TREAS 912828ND8 05/29/2015 3.500000 240,000.00 263,793.60 1,072.83 965.47

05/15/2020 1.503393 262,828.13 109.914000 IDC-FIS 0.00

82512 RM GOV US TREASURY 912828ST8 04/15/2015 1.250000 5,000,000.00 5,078,700.00 10,529.89 56,825.00

04/30/2019 1.138894 5,021,875.00 101.574000 IDC-FIS 0.00

Inv Type: 12 TREASURY NOTES

82978 SUP INTL BK RECON & 459058EV1 03/10/2016 1.250000 5,000,000.00 5,059,250.00 26,562.50 75,050.00

07/26/2019 1.345903 4,991,491.67 101.185000 IDC-FIS 0.00

82880 SUP INTL BK RECON & 45905UUM4 01/06/2016 1.060000 10,000,000.00 10,052,800.00 50,055.56 62,800.00

01/11/2018 1.110364 9,990,000.00 100.528000 IDC-FIS 0.00

83079 SUPRA INTL BK RECON 459058FE8 04/20/2016 .875000 10,000,000.00 10,026,000.00 17,500.00 36,000.00

05/13/2019 1.040147 10,009,711.11 100.343000 IDC-FIS 0.00

83184 SUP INTER-AMERICAN 458182DX7 06/28/2016 1.000000 10,000,000.00 10,034,300.00 21,944.44 45,700.00

07/19/2018 .920174 9,990,243.06 100.260000 IDC-FIS 0.00

1.069565 34,981,445.84 100.492429 0.00

Subtotal 1.017109 35,000,000.00 35,172,350.00 116,062.50 219,550.00

Inv Type: 1 SUPRANATIONALS



Page 8


Contra Costa County

As Of Date: 06/30/2016




06/19/2017 .850065 2,888,800.00 100.433000 IDC-FIS -1,351.25

82038 RM GOV FHLB NOTES 313379DT3 07/15/2014 1.250000 6,205,000.00 6,275,054.45 4,955.38 102,940.95

06/08/2018 1.390090 6,172,113.50 101.129000 IDC-FIS 0.00

80907 WT GOV FHLB NOTES 313380EC7 10/10/2012 .750000 170,000.00 170,204.00 400.22 532.10

09/08/2017 .790076 169,671.90 100.120000 IDC-FIS 0.00

82000 RM GOV FHLB NOTES 313379VE6 06/02/2014 1.010000 2,875,000.00 2,887,448.75 967.92 0.00

Inv Type: 22 FEDERAL HOME LOAN BANKS

01/31/2021 1.357590 100,520.09 101.770000 IDC-FIS 0.00

83153 CCCCD GOV US TREASU 912828N89 05/27/2016 1.375000 100,000.00 101,770.00 574.17 1,691.87

04/15/2019 1.023692 154,506.07 100.477000 IDC-FIS 0.00

83186 CCCSIG GOV US TREAS 912828D23 06/29/2016 1.625000 3,925,000.00 4,025,283.75 10,745.76 0.00

04/30/2021 .983665 224,549.46 101.727000 IDC-FIS -256.85

83187 CCCCD GOV US TREASU 912828Q78 06/29/2016 1.375000 220,000.00 223,799.40 509.65 0.00

04/30/2019 .701283 4,037,050.49 102.555000 IDC-FIS -1,367.62

83152 CCCSIG GOV US TREAS 912828Q52 05/27/2016 .875000 155,000.00 155,739.35 285.33 1,388.91

82932 CCCSIG GOV US TREAS 912828TH3 02/03/2016 .875000 600,000.00 602,460.00 2,192.31 7,143.12

10/31/2020 1.682647 150,462.89 103.363000 IDC-FIS 0.00

07/31/2019 1.107137 595,360.15 100.410000 IDC-FIS 0.00

04/30/2020 1.246765 206,081.05 101.883000 IDC-FIS 0.00

82933 CCCCD GOV US TREASU 912828K58 02/03/2016 1.375000 205,000.00 208,860.15 474.89 2,779.10

09/15/2018 1.151627 6,224,121.09 100.813000 IDC-FIS 0.00

82819 CCCSIG GOV US TREAS 912828L40 12/04/2015 1.000000 6,250,000.00 6,300,812.50 18,342.39 76,691.41

82820 CCCCD GOV US TREASU 912828VF4 12/04/2015 1.375000 195,000.00 198,580.20 227.09 5,141.72

82901 CCCCD GOV US TREASU 912828WC0 01/11/2016 1.750000 150,000.00 155,044.50 442.26 4,581.61

05/31/2020 1.560386 193,438.48 101.836000 IDC-FIS 0.00

83010 CCCCD GOV US TREAS 912828XM7 03/31/2016 1.625000 170,000.00 174,814.40 1,153.57 1,992.13

05/31/2019 .989916 116,722.86 102.258000 IDC-FIS 0.00

07/31/2020 1.230437 173,277.63 102.832000 IDC-FIS 0.00

02/28/2021 1.249867 207,720.45 104.609000 IDC-FIS 0.00

83097 CCCCD GOV US TREASU 912828B90 05/06/2016 2.000000 200,000.00 209,218.00 1,336.96 2,225.81

82968 CCCCD GOV US TREASU 912828H52 03/04/2016 1.250000 125,000.00 126,826.25 652.48 1,757.89

01/31/2020 1.235552 125,210.02 101.461000 IDC-FIS 0.00

83009 CCCSIG GOV US TREAS 912828WL0 03/31/2016 1.500000 115,000.00 117,596.70 146.11 873.84

1.013967 27,656,200.60 101.523333 -6,810.42

Subtotal 1.261617 27,440,000.00 27,858,002.70 76,312.67 221,470.99



Page 9


Contra Costa County

As Of Date: 06/30/2016




82400 RM GOV FHLB NOTES 3133782M2 02/25/2015 1.500000 5,000,000.00 5,090,800.00 23,541.67 74,200.00

12/09/2016 .571735 17,460,074.36 100.499000 IDC-FIS 0.00

03/08/2019 1.415035 5,016,600.00 101.816000 IDC-FIS 0.00

04/25/2018 1.155323 9,990,700.00 100.815000 IDC-FIS 0.00

82408 GOV FHLB NOTES 3130A4GJ5 03/04/2015 1.125000 10,000,000.00 10,081,500.00 20,625.00 90,800.00

82322 CCCCD GOV FHLB NOTE 313371PV2 01/21/2015 1.625000 17,375,000.00 17,461,701.25 17,254.37 1,626.89

82316 CCCCD GOV FHLB NOTE 3130A2T97 01/21/2015 .500000 765,000.00 765,298.35 988.13 0.00

12/09/2016 .571735 6,286,450.50 100.499000 IDC-FIS -90,687.15

09/28/2016 .470201 765,382.50 100.039000 IDC-FIS -84.15

09/28/2016 .470153 11,475,735.00 100.039000 IDC-FIS -1,261.70

82321 CCCCD GOV FHLB NOTE 3130A2T97 01/21/2015 .500000 11,470,000.00 11,474,473.30 14,815.42 0.00

03/06/2017 .802655 9,983,700.00 100.166000 IDC-FIS 0.00

82419 GOV FHLB NOTES 3130A4K27 03/09/2015 .720000 10,000,000.00 10,016,600.00 23,000.00 32,900.00

82437 RM GOV FHLB NOTES 3133782N0 03/16/2015 .875000 3,000,000.00 3,008,580.00 8,093.75 570.00

82550 GOV FHLB NOTES 3130A57K9 05/04/2015 1.000000 10,000,000.00 10,051,500.00 15,833.33 66,300.00

03/10/2017 .739127 3,008,010.00 100.286000 IDC-FIS 0.00

10/14/2016 .572077 10,010,200.00 100.057000 IDC-FIS -4,500.00

82187 GOV FHLB NOTES 3130A3CE2 11/05/2014 .625000 10,000,000.00 10,005,700.00 13,368.06 0.00

82189 RM GOV FHLB NOTES 3130A3EW0 11/07/2014 .500000 2,500,000.00 2,500,200.00 520.82 6,475.00

82255 GOV FHLB NOTES 3130A3PC2 12/12/2014 .650000 5,000,000.00 5,004,600.00 1,715.28 11,550.00

12/16/2016 .620043 2,493,725.00 100.008000 IDC-FIS 0.00

82053 RM GOV FHLB NOTES 313379DT3 07/28/2014 1.250000 3,000,000.00 3,033,870.00 2,395.83 51,870.00

82315 CCCCD GOV FHLB NOTE 313371PV2 01/21/2015 1.625000 6,165,000.00 6,195,763.35 6,122.18 0.00

06/08/2018 1.410094 2,982,000.00 101.129000 IDC-FIS 0.00

09/19/2017 1.200000 5,000,000.00 100.793000 IDC-FIS 0.00

82122 GOV FHLB NOTES 3130A33J1 09/19/2014 1.200000 5,000,000.00 5,039,650.00 17,000.00 39,650.00

12/12/2016 .720127 4,993,050.00 100.092000 IDC-FIS 0.00

82280 RM GOV FHLB NOTES 3130A3HF4 12/29/2014 1.125000 4,500,000.00 4,530,825.00 3,234.39 38,025.00

08/15/2017 1.000000 10,000,000.00 100.506000 IDC-FIS 0.00

12/08/2017 1.180284 4,492,800.00 100.685000 IDC-FIS 0.00

01/06/2017 .750000 10,000,000.00 100.128000 IDC-FIS 0.00

82281 GOV FHLB NOTES 3130A3UR3 01/06/2015 .750000 10,000,000.00 10,012,800.00 36,458.33 12,800.00

12/12/2016 .670252 3,502,065.00 100.115000 IDC-FIS 0.00

82256 RM GOV FHLB NOTES 3130A3Q64 12/12/2014 .700000 3,500,000.00 3,504,025.00 1,293.06 1,960.00

82271 GOV FHLB NOTES 3130A3Q64 12/23/2014 .700000 5,000,000.00 5,005,750.00 1,847.22 12,600.00

82275 GOV FHLB NOTES 3130A3TA2 12/30/2014 1.000000 10,000,000.00 10,050,600.00 37,777.78 50,600.00

12/12/2016 .770206 4,993,150.00 100.115000 IDC-FIS 0.00



Page 10


Contra Costa County

As Of Date: 06/30/2016




82931 KFPD GOV FHLB NOTES 3130A3UQ5 01/25/2016 1.875000 250,000.00 257,625.00 260.42 4,060.00

12/13/2019 1.326075 249,282.50 101.094000 IDC-FIS 0.00

12/11/2020 1.570027 253,565.00 103.050000 IDC-FIS 0.00

03/19/2018 .890099 2,249,302.50 100.352000 IDC-FIS 0.00

82949 CCCSIG GOV FHLB 3130A7CX1 02/18/2016 .875000 2,250,000.00 2,257,920.00 5,578.13 8,617.50

82930 KFPD GOV FHLB NOTES 313381C94 01/27/2016 1.250000 250,000.00 252,735.00 156.25 3,452.50

82928 KFPD GOV FHLB NOTES 3130A6UJ4 01/26/2016 1.250000 250,000.00 252,647.50 269.10 1,602.50

11/30/2018 1.100214 251,045.00 101.059000 IDC-FIS 0.00

12/11/2020 1.513574 248,377.50 101.013000 IDC-FIS 0.00

82929 KFPD GOV FHLB NOTES 313381CA1 01/27/2016 1.375000 250,000.00 252,532.50 190.97 4,155.00

06/29/2018 .991934 159,614.40 100.400000 IDC-FIS 0.00

12/19/2017 .895450 6,010,800.00 100.517000 IDC-FIS 0.00

82994 CCCCD GOV FHLB NOTE 3130A6SW8 03/22/2016 1.000000 6,000,000.00 6,031,020.00 2,000.00 20,220.00

83154 CCCSIG GOV FHLB NOT 3130A8BD4 05/27/2016 .875000 2,185,000.00 2,193,740.00 106.21 14,005.85

83155 CCCCD GOV FHLB NOTE 3130A8BD4 05/27/2016 .875000 160,000.00 160,640.00 7.78 1,025.60

06/29/2018 .991934 2,179,734.15 100.400000 IDC-FIS 0.00

82582 RM GOV FHLB NOTES 313379EE5 06/08/2015 1.625000 2,500,000.00 2,556,575.00 1,918.40 50,575.00

06/30/2017 .730000 10,000,000.00 100.189000 IDC-FIS 0.00

06/14/2019 1.563094 2,506,000.00 102.263000 IDC-FIS 0.00

10/30/2018 1.300000 5,000,000.00 101.274000 IDC-FIS 0.00

82583 GOV FHLB NOTES 3130A5NC9 06/11/2015 1.300000 5,000,000.00 5,063,700.00 11,013.91 63,700.00

05/04/2018 1.050244 9,985,200.00 100.515000 IDC-FIS 0.00

12/08/2017 1.150014 9,995,200.00 100.685000 IDC-FIS 0.00

82552 GOV FHLB NOTES 3130A5DD8 05/07/2015 .720000 10,000,000.00 10,015,900.00 7,000.00 15,900.00

82579 GOV FHLB NOTES 3130A5HF9 06/01/2015 .730000 10,000,000.00 10,018,900.00 202.74 18,900.00

05/26/2017 .720000 10,000,000.00 100.159000 IDC-FIS 0.00

82590 GOV FHLB NOTES 3130A5JD2 06/29/2015 1.100000 10,000,000.00 10,070,500.00 611.11 70,500.00

11/02/2018 1.150000 5,000,000.00 101.018000 IDC-FIS 0.00

82781 GOV FHLB NOTES 3130A6RC3 11/04/2015 1.150000 5,000,000.00 5,050,900.00 9,423.62 50,900.00

82848 GOV FHLB NOTES 3130A6SW8 12/21/2015 1.000000 10,000,000.00 10,051,700.00 3,333.33 58,600.00

82875 GOV FHLB NOTES 3130A3HF4 12/30/2015 1.125000 10,000,000.00 10,068,500.00 7,187.50 73,300.00

12/19/2017 1.035037 9,993,100.00 100.517000 IDC-FIS 0.00

82664 GOV FHLB NOTES 3130A6B63 08/14/2015 1.200000 10,000,000.00 10,103,700.00 45,666.67 103,700.00

06/29/2018 1.100000 10,000,000.00 100.705000 IDC-FIS 0.00

08/14/2018 1.200000 10,000,000.00 101.037000 IDC-FIS 0.00

09/13/2019 1.400130 2,497,575.00 101.483000 IDC-FIS 0.00

82694 RM GOV FHLB NOTES 313380FB8 09/21/2015 1.375000 2,500,000.00 2,537,075.00 10,312.50 39,500.00



Page 11


Contra Costa County

As Of Date: 06/30/2016




81538 WT GOV FNMA NOTES 3135G0WJ8 07/17/2013 .875000 164,000.00 164,649.44 159.44 5,120.08

05/21/2018 1.190082 196,976.00 100.396000 IDC-FIS 0.00

05/21/2018 1.459815 159,529.36 100.396000 IDC-FIS 0.00

02/19/2019 1.795148 378,398.67 102.767000 IDC-FIS 0.00

81889 AUHSD GOV FNMA NOTE 3135G0ZA4 04/01/2014 1.875000 377,000.00 387,431.59 2,591.88 9,032.92

02/08/2018 .970000 164,242.02 100.510000 IDC-FIS 0.00

81361 RM GOV FEDERAL NATL 3135G0JA2 04/15/2013 1.125000 3,900,000.00 3,917,277.00 7,800.01 0.00

81478 AUHSD GOV FNMA NOTE 3135G0WJ8 06/07/2013 .875000 200,000.00 200,792.00 194.44 3,816.00

04/27/2017 .600233 3,981,432.00 100.443000 IDC-FIS -64,155.00

81890 AUHSD GOV FNMA NOTE 3135G0ZA4 04/01/2014 1.875000 6,959,000.00 7,151,555.53 47,843.16 166,737.64

81941 GOV FNMA NOTE 3135G0MZ3 04/17/2014 .875000 10,000,000.00 10,027,600.00 29,895.83 86,800.00

02/19/2019 1.795148 6,984,817.89 102.767000 IDC-FIS 0.00

08/28/2017 1.054521 9,940,800.00 100.276000 IDC-FIS 0.00

04/20/2017 .740235 49,013.72 100.202000 IDC-FIS 0.00

81999 MDUSD GOV FNMA NOTE 3135G0ZB2 05/21/2014 .750000 49,000.00 49,098.98 72.48 85.26

80020 WT GOV FNMA NOTES 3135G0CM3 11/09/2011 1.250000 173,000.00 173,342.54 558.65 0.00

81230 WT GOV FNMA NOTES 3135G0TG8 02/21/2013 .875000 165,000.00 165,841.50 573.49 1,599.48

09/28/2016 1.160000 173,736.98 100.198000 IDC-FIS -394.44

09/28/2016 .615791 4,821,797.78 100.198000 IDC-FIS -109,485.84

80833 RM GOV FNMA NOTES 3135G0CM3 09/14/2012 1.250000 4,703,000.00 4,712,311.94 15,186.77 0.00

Inv Type: 23 FEDERAL NATIONAL MORTGAGE ASSO

06/29/2018 .877007 2,369,905.20 100.400000 IDC-FIS 0.00

83166 CCCCD GOV FHLB B 3130A8DB6 06/09/2016 1.125000 2,365,000.00 2,386,947.20 739.07 14,402.85

06/21/2019 1.017963 2,372,544.35 100.928000 IDC-FIS 0.00

83161 CCCSIG GOV FHLB 3130A8DB6 06/03/2016 1.125000 3,020,000.00 3,048,025.60 943.75 29,294.00

06/21/2019 1.139098 3,018,731.60 100.928000 IDC-FIS 0.00

83165 CCCCD GOV FHLB NOTE 3130A8BD4 06/09/2016 .875000 2,370,000.00 2,379,480.00 115.20 9,574.80

83167 RM GOV FHLB NOTES 3133834H1 06/10/2016 1.375000 1,865,000.00 1,887,286.75 1,353.42 8,112.75

83178 CCCCD GOV FHLB NOTE 3130A8BD4 06/17/2016 .875000 860,000.00 863,440.00 41.81 1,857.60

06/29/2018 .783628 861,582.40 100.400000 IDC-FIS 0.00

06/12/2020 1.180179 5,305,014.00 101.195000 IDC-FIS 0.00

06/12/2020 1.180179 1,879,174.00 101.195000 IDC-FIS 0.00

83168 RM GOV FHLB NOTES 3133834H1 06/10/2016 1.375000 5,265,000.00 5,327,916.75 3,820.79 22,902.75

.930508 244,069,975.36 100.570541 -97,884.25

Subtotal 1.031463 243,865,000.00 245,256,349.75 364,460.82 1,284,258.64



Page 12


Contra Costa County

As Of Date: 06/30/2016




82952 CCCCD GOV FNMA BENC 3135G0J53 02/23/2016 1.000000 125,000.00 125,615.00 434.03 910.00

02/26/2019 1.079949 1,995,280.00 100.492000 IDC-FIS 0.00

02/26/2019 1.079949 124,705.00 100.492000 IDC-FIS 0.00

03/28/2018 .973722 1,417,544.19 100.344000 IDC-FIS 0.00

82966 CCCSIG GOV FNMA BEN 3135G0J61 03/04/2016 .875000 1,420,000.00 1,424,884.80 3,209.79 7,340.61

82951 CCCSIG GOV FNMA BEN 3135G0J53 02/23/2016 1.000000 2,000,000.00 2,009,840.00 6,944.45 14,560.00

82709 CCCCD GOV FNMA 31398ADM1 09/29/2015 5.375000 1,550,000.00 1,618,882.00 4,397.05 0.00

09/27/2017 .723255 1,689,189.60 100.458000 IDC-FIS -1,495.20

06/12/2017 .642309 1,674,015.50 104.444000 IDC-FIS -55,133.50

01/28/2019 1.309114 6,673,053.60 101.443000 IDC-FIS 0.00

82909 CCCCD GOV FNMA BENC 3135G0H63 01/13/2016 1.375000 6,660,000.00 6,756,103.80 38,919.37 83,050.20

12/14/2018 1.082725 1,101,265.00 100.909000 IDC-FIS 0.00

82967 CCCSIG GOV FNMA NOT 3135G0G72 03/04/2016 1.125000 1,100,000.00 1,109,999.00 584.38 8,734.00

82997 GOV FNMA NOTES 3135G0J53 03/22/2016 1.000000 10,000,000.00 10,049,200.00 34,722.22 68,500.00

83000 RM GOV FNMA NOTES 3136G1C98 03/28/2016 1.420000 4,000,000.00 4,059,600.00 23,035.55 39,600.00

02/26/2019 1.067074 9,987,922.22 100.492000 IDC-FIS 0.00

11/27/2018 1.385424 126,187.50 102.129000 IDC-FIS 0.00

82156 CCCCD GOV FNMA 3135G0YT4 10/23/2014 1.625000 125,000.00 127,661.25 191.85 1,473.75

82236 CCCCD GOV FNMA BENC 3135G0ZY2 12/03/2014 1.750000 100,000.00 102,813.00 170.14 2,160.00

82257 RM GOV FNMA NOTES 3135G0YT4 12/12/2014 1.625000 6,010,000.00 6,137,952.90 9,223.69 71,458.90

11/26/2019 1.612998 100,653.00 102.813000 IDC-FIS 0.00

82005 CCCCD GOV FNMA 3135G0YT4 06/05/2014 1.625000 115,000.00 117,448.35 176.49 1,775.60

82708 CCCCD GOV FNMA 3135G0ZL0 09/29/2015 1.000000 1,680,000.00 1,687,694.40 4,386.67 0.00

11/27/2018 1.489435 115,672.75 102.129000 IDC-FIS 0.00

09/12/2019 1.889799 164,897.76 102.769000 IDC-FIS 0.00

82119 WT GOV FNMA NOTES 3135G0ZG1 09/12/2014 1.750000 166,000.00 170,596.54 879.57 5,698.78

11/27/2018 1.380107 6,066,494.00 102.129000 IDC-FIS 0.00

82678 CCCCD GOV FNMA BENC 3135G0E58 09/01/2015 1.125000 130,000.00 131,194.70 292.50 1,405.30

01/21/2020 1.627650 169,977.90 102.362000 IDC-FIS 0.00

10/19/2018 1.177919 129,789.40 100.919000 IDC-FIS 0.00

12/20/2017 .793128 1,703,060.00 100.353000 IDC-FIS 0.00

82707 CCCCD GOV FNMA 3135G0RT2 09/29/2015 .875000 1,700,000.00 1,706,001.00 454.52 2,941.00

07/05/2016 .397750 2,634,818.23 100.000000 IDC-FIS 0.00

82314 CCCCD GOV FNMA 3135G0XP3 01/21/2015 .375000 2,635,000.00 2,635,000.00 4,830.83 181.77

82381 RM GOV FNMA NOTES 3136FTS67 02/09/2015 1.700000 6,000,000.00 6,143,100.00 35,133.33 55,920.00

82436 WT GOV FNMA NOTES 3135G0A78 03/16/2015 1.625000 170,000.00 174,015.40 1,227.78 4,037.50

02/27/2019 1.329281 6,087,180.00 102.385000 IDC-FIS 0.00



Page 13


Contra Costa County

As Of Date: 06/30/2016




82778 CCCCD ABS FNMA SRS 3136AQDQ0 10/30/2015 1.646000 115,000.00 116,151.60 157.74 0.00

09/25/2019 1.382287 116,151.60 101.001391 BOOK 0.00

82814 CCCCD GOV FNMA SRS 3136AQSW1 11/30/2015 1.898080 65,000.00 65,649.99 102.82 0.00

04/01/2018 1.201381 388,848.61 100.999639 BOOK 0.00

82344 CCCSIG ABS GOV FNMA 3136AMKW8 01/30/2015 1.626000 420,826.65 425,031.76 570.22 0.00

02/25/2018 1.293773 425,031.76 100.999250 BOOK 0.00

82545 CCCSIG GOV FNMA-ACE 3136ANJY4 04/30/2015 1.550000 385,000.00 388,848.61 497.32 0.00

07/25/2019 1.464707 111,097.36 100.997600 BOOK 0.00

83189 CCCSIG ABS FNMA SRS 3136ASPX8 06/30/2016 1.785000 1,155,000.00 1,166,549.42 1,718.06 0.00

06/25/2019 1.442622 1,168,210.21 100.999950 BOOK 0.00

83093 CCCCD ABS GOV FHLMC 3137BNN26 04/28/2016 1.780000 110,000.00 111,097.36 163.17 0.00

01/25/2019 1.572772 65,649.99 100.999985 BOOK 0.00

83092 CCCSIG ABS GOV FHLM 3137BNMZ4 04/28/2016 1.738000 598,763.51 604,746.35 867.21 0.00

03/25/2019 1.387262 604,746.35 100.999199 BOOK 0.00

Subtotal 1.716709 2,849,590.16 2,878,075.09 4,076.54 0.00

1.377838 2,879,735.88 100.999615 0.00

Inv Type: 26 AGENCY ABS FXD-M 30/360

04/13/2021 1.000000 10,000,000.00 100.298000 IDC-FIS 0.00

83078 PW GOV FNMA NOTES 3135G0JA2 04/20/2016 1.125000 1,592,000.00 1,599,052.56 3,184.00 0.00

04/27/2017 .620365 1,600,151.04 100.443000 IDC-FIS -1,098.48

83068 GOV FNMA STEP-UP CA 3136G3HG3 04/13/2016 1.000000 10,000,000.00 10,029,800.00 21,666.67 29,800.00

04/20/2017 .660199 249,234.06 100.202000 IDC-FIS 0.00

83011 RM GOV FNMA NOTES 3135G0ZB2 04/01/2016 .750000 249,000.00 249,502.98 368.31 268.92

02/05/2020 1.286438 4,028,362.22 101.490000 IDC-FIS 0.00

83081 GOV FNMA NOTES 3135G0J53 04/22/2016 1.000000 10,000,000.00 10,049,200.00 34,722.23 68,800.00

02/26/2019 .966540 3,179,083.68 100.492000 IDC-FIS 0.00

83185 CCCSIG GOV FNMA BEN 3135G0J53 06/29/2016 1.000000 3,525,000.00 3,542,343.00 12,239.58 0.00

02/26/2019 .784359 3,556,995.25 100.492000 IDC-FIS -2,608.50

83099 CCCSIG GOV FNMA BEN 3135G0J53 05/06/2016 1.000000 3,170,000.00 3,185,596.40 11,006.95 12,676.61

02/26/2019 1.070042 9,995,955.56 100.492000 IDC-FIS 0.00

83090 CCCSIG GOV FNMA 3135G0YT4 04/27/2016 1.625000 1,575,000.00 1,608,531.75 2,417.19 8,757.00

11/27/2018 1.006504 1,599,774.75 102.129000 IDC-FIS 0.00

1.078398 103,022,006.63 100.989910 -234,370.96

Subtotal 1.253842 102,487,000.00 103,501,529.35 359,695.29 763,241.32



Page 14


Contra Costa County

As Of Date: 06/30/2016




82671 RM GOV FFCB NOTES 3133EE5S5 08/25/2015 1.500000 1,000,000.00 1,019,940.00 6,083.33 14,200.00

04/02/2018 1.000000 10,000,000.00 100.543000 IDC-FIS 0.00

08/05/2019 1.350014 1,005,740.00 101.994000 IDC-FIS 0.00

08/05/2019 1.350014 3,017,220.00 101.994000 IDC-FIS 0.00

82672 RM GOV FFCB NOTES 3133EE5S5 08/25/2015 1.500000 3,000,000.00 3,059,820.00 18,250.00 42,600.00

01/22/2018 1.096935 9,971,900.00 100.513000 IDC-FIS 0.00

82382 RM GOV FFCB NOTES 3133EELZ1 02/09/2015 1.000000 5,000,000.00 5,027,300.00 12,777.76 47,300.00

82472 GOV FFCB NOTES 3133EEWH9 04/02/2015 1.000000 10,000,000.00 10,054,300.00 24,722.22 54,300.00

03/29/2018 1.130145 4,980,000.00 100.546000 IDC-FIS 0.00

82683 WT GOV FFCB NOTES 3133EE5Z9 09/11/2015 1.750000 170,000.00 174,505.00 1,214.79 4,348.60

82785 GOV FFCB NOTES 3133EFNF0 11/06/2015 1.080000 5,000,000.00 5,033,750.00 8,250.00 37,300.00

82691 GOV FFCB NOTES 3133EFCY1 09/14/2015 .780000 5,000,000.00 5,009,600.00 11,591.67 12,600.00

08/04/2020 1.730194 170,156.40 102.650000 IDC-FIS 0.00

09/14/2017 .810304 4,997,000.00 100.192000 IDC-FIS 0.00

09/14/2017 .860067 4,992,100.00 100.192000 IDC-FIS 0.00

82692 GOV FFCB NOTES 3133EFCY1 09/16/2015 .780000 5,000,000.00 5,009,600.00 11,591.67 17,500.00

12/07/2016 .972048 2,497,134.30 100.174000 IDC-FIS 0.00

81579 RM GOV FFCB NOTES 3133ECWV2 08/20/2013 .875000 2,505,000.00 2,509,358.70 1,461.24 12,224.40

11/01/2016 .700000 5,000,000.00 100.081000 IDC-FIS 0.00

81958 GOV FEDERAL FARM CR 3133EDKJ0 05/01/2014 .700000 5,000,000.00 5,004,050.00 5,833.33 4,050.00

05/17/2017 .790074 198,914.00 100.040000 IDC-FIS 0.00

80718 RM GOV FFCB NOTES 3133EAXG8 07/23/2012 .650000 2,494,000.00 2,494,349.16 7,610.16 0.00

82380 GOV FFCB NOTES 3133EEKB5 02/09/2015 1.000000 10,000,000.00 10,051,300.00 44,166.67 79,400.00

81479 AUHSD GOV FFCB NOTE 3133ECPT5 06/07/2013 .650000 200,000.00 200,080.00 158.89 1,166.00

07/12/2016 .600206 2,498,863.30 100.014000 IDC-FIS -4,514.14

82137 GOV FFCB NOTES 3133EDXA5 10/10/2014 1.150000 10,000,000.00 10,070,200.00 25,875.00 72,200.00

12/01/2016 .590074 4,999,000.00 100.047000 IDC-FIS 0.00

82218 GOV FFCB NOTES 3133EEDQ0 12/01/2014 .580000 5,000,000.00 5,002,350.00 2,416.67 3,350.00

12/15/2016 .720000 10,000,000.00 100.108000 IDC-FIS 0.00

82259 GOV FFCB NOTES 3133EEFA3 12/15/2014 .720000 10,000,000.00 10,010,800.00 3,200.00 10,800.00

11/14/2016 .600000 10,000,000.00 100.055000 IDC-FIS 0.00

82185 RM GOV FFCB NOTES 3133EDYB2 11/04/2014 1.500000 2,000,000.00 2,035,280.00 13,750.00 44,980.00

10/10/2017 1.156802 9,998,000.00 100.702000 IDC-FIS 0.00

82195 GOV FFCB NOTES 3133EEBU3 11/18/2014 .600000 10,000,000.00 10,005,500.00 7,833.33 5,500.00

01/16/2019 1.620035 1,990,300.00 101.764000 IDC-FIS 0.00

Inv Type: 27 FEDERAL FARM CREDIT BANKS



Page 15


Contra Costa County

As Of Date: 06/30/2016




01/17/2017 .537741 994,902.64 99.788889 IDC-FIS 0.00

82941 RM GOV FHLMC DISCOU 313397AS0 02/09/2016 .535000 1,000,000.00 997,888.89 2,125.14 861.11

.537741 994,902.64 99.788889 0.00

Subtotal .535000 1,000,000.00 997,888.89 2,125.14 861.11

Inv Type: 28 FHLMC DISCOUNT NOTES

03/21/2019 1.180075 9,994,100.00 100.886000 IDC-FIS 0.00

83007 RM GOV FFCB NOTES 3133EFV20 03/30/2016 1.490000 4,000,000.00 4,006,520.00 15,065.56 6,520.00

03/04/2020 1.430176 4,034,408.35 100.955000 IDC-FIS 0.00

82992 GOV FFCB NOTES 3133EFQ67 03/21/2016 1.160000 10,000,000.00 10,088,600.00 32,222.22 94,500.00

03/30/2020 1.490000 4,000,000.00 100.163000 IDC-FIS 0.00

83160 GOV FFCB NOTES 3133EGCA1 06/03/2016 1.060000 10,000,000.00 10,065,500.00 8,244.44 89,100.00

06/03/2019 1.140244 9,976,400.00 100.655000 IDC-FIS 0.00

83149 GOV FFCB NOTES 3133EGCD5 05/25/2016 .900000 10,000,000.00 10,037,400.00 9,000.00 52,300.00

05/25/2018 .975411 9,985,100.00 100.374000 IDC-FIS 0.00

82986 RM GOV FFCB NOTES 3133EFK63 03/15/2016 1.250000 4,061,000.00 4,099,782.55 16,497.82 66,925.28

82846 GOV FFCB NOTES 3133EFSJ7 12/18/2015 1.300000 20,000,000.00 20,245,800.00 12,277.78 313,000.00

12/03/2018 1.305115 9,998,500.00 101.217000 IDC-FIS 0.00

11/06/2018 1.104126 4,996,450.00 100.675000 IDC-FIS 0.00

82796 GOV FFCB NOTES 3133EFPH4 11/17/2015 .930000 10,000,000.00 10,041,200.00 11,366.67 41,200.00

82817 GOV FFCB NOTES 3133EFRQ2 12/03/2015 1.300000 10,000,000.00 10,121,700.00 10,111.11 121,700.00

11/17/2017 .930000 10,000,000.00 100.412000 IDC-FIS 0.00

82818 GOV FFCB NOTES 3133EFRQ2 12/03/2015 1.300000 10,000,000.00 10,121,700.00 10,111.11 123,200.00

12/03/2018 1.300000 10,000,000.00 101.217000 IDC-FIS 0.00

12/14/2018 1.415191 19,932,800.00 101.229000 IDC-FIS 0.00

12/14/2020 1.320066 155,578.15 101.182000 IDC-FIS 0.00

82946 WT GOV FFCB NOTES 3133EC6Z2 02/12/2016 1.400000 155,000.00 156,832.10 102.47 1,253.95

02/22/2019 1.217313 9,983,594.44 100.226000 IDC-FIS 0.00

82963 GOV FFCB CALLABLE N 3133EFYS0 03/02/2016 1.150000 10,000,000.00 10,022,600.00 41,208.33 42,200.00

06/14/2018 1.255129 9,979,200.00 100.840000 IDC-FIS 0.00

82847 GOV FFCB NOTES 3133EFSH1 12/18/2015 1.170000 10,000,000.00 10,084,000.00 5,525.00 104,800.00

01/22/2019 1.126024 250,950.90 101.136000 IDC-FIS 0.00

82926 KFPD GOV FFCB NOTES 3133EFVQ7 01/27/2016 1.250000 250,000.00 252,840.00 1,380.21 1,932.50

Subtotal 1.049830 199,835,000.00 201,116,557.51 379,899.45 1,522,450.73

1.092359 199,603,409.84 100.641308 -4,514.14



Page 16


Contra Costa County

As Of Date: 06/30/2016




82571 RM GOV FHLMC NOTES 3137EADG1 05/27/2015 1.750000 3,000,000.00 3,082,500.00 4,520.83 39,360.00

05/30/2017 .710296 9,991,700.00 100.098000 IDC-FIS 0.00

05/30/2019 1.379985 3,043,140.00 102.750000 IDC-FIS 0.00

05/30/2019 1.480153 101,007.00 102.750000 IDC-FIS 0.00

82635 CCCCD GOV FHLMC NOT 3137EADG1 07/22/2015 1.750000 100,000.00 102,750.00 150.69 1,743.00

03/08/2017 .643501 19,702,249.15 100.328000 IDC-FIS -83,108.75

82319 CCCCD GOV FHLMC 3137EADC0 01/21/2015 1.000000 9,485,000.00 9,516,110.80 29,772.36 0.00

82549 GOV FHLMC NOTES 3134G6YC1 05/01/2015 .670000 10,000,000.00 10,009,800.00 5,769.40 18,100.00

03/08/2017 .643501 9,556,422.05 100.328000 IDC-FIS -40,311.25

82762 RM GOV FHLMC NOTES 3137EADM8 10/26/2015 1.250000 6,000,000.00 6,071,280.00 18,541.67 85,080.00

82838 GOV FHLMC NOTES 3137EADX4 12/15/2015 1.000000 10,000,000.00 10,053,200.00 4,444.45 65,050.00

82807 GOV FHLMC NOTES 3134G3S50 11/23/2015 .625000 5,000,000.00 5,003,000.00 5,208.33 3,000.00

10/02/2019 1.310124 5,986,200.00 101.188000 IDC-FIS 0.00

11/01/2016 .625000 5,000,000.00 100.060000 IDC-FIS 0.00

12/15/2017 1.057021 9,988,680.00 100.532000 IDC-FIS 0.00

82837 GOV FHLMC NOTES 3137EADX4 12/11/2015 1.000000 10,000,000.00 10,053,200.00 4,444.45 64,520.00

03/07/2018 1.250049 6,958,474.28 100.184000 IDC-FIS 0.00

81869 RM GOV FEDERAL HOME 3137EADP1 03/14/2014 .875000 7,061,000.00 7,073,992.24 19,564.87 115,517.96

03/07/2018 1.279731 154,538.24 100.184000 IDC-FIS 0.00

81870 WT GOV FEDERAL HOME 3137EADP1 03/12/2014 .875000 157,000.00 157,288.88 435.02 2,750.64

03/08/2017 .780254 3,895,464.60 100.328000 IDC-FIS -12,771.00

80411 WT GOV FHLMC NOT 3137EADC0 03/12/2012 1.000000 170,000.00 170,557.60 533.61 1,545.30

82317 CCCCD GOV FREDDIE M 3137EADC0 01/21/2015 1.000000 19,555,000.00 19,619,140.40 61,380.97 0.00

81847 RM GOV FHLMC NOTE3S 3137EADC0 02/25/2014 1.000000 3,870,000.00 3,882,693.60 12,147.50 0.00

03/08/2017 1.120062 169,012.30 100.328000 IDC-FIS 0.00

82009 RM GOV FHLMC 3137EADH9 06/13/2014 1.000000 2,484,000.00 2,494,109.88 138.00 6,021.71

08/08/2018 1.200000 2,486,000.00 100.975000 IDC-FIS 0.00

82312 AUHSD GOV FHLMC NOT 3134G3ZW3 01/21/2015 1.200000 2,486,000.00 2,510,238.50 11,849.93 24,238.50

08/08/2018 1.200000 110,000.00 100.975000 IDC-FIS 0.00

82313 AUHSD GOV FHLMC NOT 3134G3ZW3 01/21/2015 1.200000 110,000.00 111,072.50 524.33 1,072.50

09/29/2017 1.033085 4,994,900.00 100.478000 IDC-FIS 0.00

82026 GOV FHLMC NOTES 3137EADL0 07/03/2014 1.000000 10,000,000.00 10,047,800.00 25,555.56 70,100.00

06/29/2017 .945000 2,488,088.17 100.407000 IDC-FIS 0.00

82078 GOV FHLMC NOTES 3137EADL0 08/11/2014 1.000000 5,000,000.00 5,023,900.00 12,777.78 29,000.00

09/29/2017 1.070130 9,977,700.00 100.478000 IDC-FIS 0.00

Inv Type: 29 FHLMC NOTES



Page 17


Contra Costa County

As Of Date: 06/30/2016




10/26/2018 1.061785 9,997,100.00 100.118000 IDC-FIS 0.00

83085 GOV FHLMC NOTES 3134G8YU7 04/26/2016 1.050000 10,000,000.00 10,011,800.00 18,958.33 14,700.00

10/26/2018 1.073168 9,994,300.00 100.118000 IDC-FIS 0.00


12/30/2019 1.375000 5,000,000.00 100.185000 IDC-FIS 0.00

83039 GOV FHLMC CALLABLE 3134G8W21 04/08/2016 1.375000 5,000,000.00 5,009,250.00 190.99 9,250.00

10/26/2018 1.050000 10,000,000.00 100.118000 IDC-FIS 0.00


05/25/2018 1.000000 5,000,000.00 100.254000 IDC-FIS 0.00

83150 GOV FHLMC NOTES 3134G9HC4 05/25/2016 1.000000 5,000,000.00 5,012,700.00 5,000.00 12,700.00

06/14/2019 1.280000 10,000,000.00 100.315000 IDC-FIS 0.00

83172 GOV FHLMC CALLABLE 3134G9QW0 06/14/2016 1.280000 10,000,000.00 10,031,500.00 6,044.44 31,500.00

05/30/2019 .985848 1,125,080.00 102.750000 IDC-FIS 0.00

83109 CCCSIG GOV FHLMC NO 3137EADG1 05/16/2016 1.750000 1,100,000.00 1,130,250.00 1,657.64 5,170.00

01/12/2018 .750517 501,286.66 100.171000 IDC-FIS 0.00

83110 CCCSIG GOV FHLMC NO 3137EADN6 05/16/2016 .750000 500,000.00 500,855.00 1,760.41 860.00

05/30/2019 1.037316 102,298.00 102.750000 IDC-FIS 0.00

82947 CCCCD GOV FHLMC NOT 3137EADG1 02/16/2016 1.750000 100,000.00 102,750.00 150.69 452.00

03/27/2019 1.146745 1,374,641.25 107.968000 IDC-FIS 0.00

82965 CCCSIG GOV FHLMC NO 3137EACA5 03/04/2016 3.750000 1,275,000.00 1,376,592.00 12,484.38 1,950.75

10/02/2019 1.330187 249,280.00 101.188000 IDC-FIS 0.00

82876 GOV FHLMC NOTES 3134G64W0 12/30/2015 .900000 5,007,000.00 5,024,925.06 1,001.41 27,838.92

12/15/2017 1.060007 9,988,150.00 100.532000 IDC-FIS 0.00

82927 KFPD GOV FHLMC NOTE 3137EADM8 01/25/2016 1.250000 250,000.00 252,970.00 772.57 3,690.00

06/23/2017 1.035077 4,997,086.14 100.358000 IDC-FIS 0.00

82993 CCCCD GOV FHLMC NOT 3137EADZ9 03/21/2016 1.125000 70,000.00 70,595.00 218.75 618.10

04/09/2018 .829093 2,685,776.70 100.115000 IDC-FIS 0.00

83018 GOV FHLMC NOTES 3137EAEA3 04/07/2016 .750000 10,000,000.00 10,011,500.00 17,500.00 27,200.00

04/09/2018 .829093 9,984,300.00 100.115000 IDC-FIS 0.00

83019 CCCSIG GOV FHLMC NO 3137EAEA3 04/07/2016 .750000 2,690,000.00 2,693,093.50 4,707.50 7,316.80

09/30/2019 1.350000 10,000,000.00 100.325000 IDC-FIS 0.00

82996 CCCCD GOV FHLMC NOT 3137EADZ9 03/22/2016 1.125000 6,000,000.00 6,051,000.00 18,750.00 52,200.00

04/15/2019 1.135900 69,976.90 100.850000 IDC-FIS 0.00

83006 GOV FHLMC STEP-UP C 3134G8PD5 03/30/2016 1.350000 10,000,000.00 10,032,500.00 34,125.00 32,500.00

04/15/2019 1.131578 5,998,987.50 100.850000 IDC-FIS 0.00

Subtotal 1.050692 191,470,000.00 192,318,514.96 378,998.52 784,346.18

1.001066 191,671,838.94 100.443158 -136,191.00



Page 18


Contra Costa County

As Of Date: 06/30/2016




82813 RM GOV FFCB DISC 313312P95 12/01/2015 .600000 370,000.00 369,539.56 1,313.50 402.89

09/01/2016 .431873 1,095,230.58 99.955222 IDC-FIS 0.00

82680 DCD GOV FFCB DISCOU 313312E30 09/04/2015 .430000 1,100,000.00 1,099,507.44 3,954.81 322.05

11/18/2016 .603550 367,823.17 99.875556 IDC-FIS 0.00

Subtotal .472739 1,470,000.00 1,469,047.00 5,268.31 724.94

Inv Type: 42 FARM CREDIT DISCOUNT NOTES

06/15/2017 .590598 248,566.11 99.467000 IDC-FIS 0.00

83180 CLT GOV FNMA DISC N 313589GX5 06/24/2016 .580000 250,000.00 248,667.50 28.19 73.20

82684 RM GOV FNMA DISC 313588C29 09/11/2015 .400000 295,000.00 294,908.55 963.67 56.05

08/15/2016 .401514 293,888.83 99.969000 IDC-FIS 0.00

.488157 542,454.94 99.738725 0.00

Subtotal .482480 545,000.00 543,576.05 991.86 129.25

Inv Type: 41 FNMA DISCOUNT NOTES

01/01/2017 4.660491 70,229.60 100.328000 BOOK 0.00

05/15/2017 .966000 175,000.00 100.000000 BOOK 0.00

81278 CCCCD MUNI UNIV OF 91412GPY5 03/14/2013 .966000 175,000.00 175,000.00 216.01 0.00

01/01/2018 1.301222 696,925.06 116.154177 BOOK 0.00

81510 AUHSD MUNI WASHINGT 93974B3K6 06/27/2013 5.000000 600,000.00 696,925.06 15,000.00 0.00

08/01/2016 6.525847 7,453.00 74.530000 BOOK 0.00

80198 AUHSD MUNI COMPTON 204712FD0 01/03/2012 .000000 10,000.00 7,453.00 0.00 0.00

08/01/2017 1.402000 440,000.00 100.000000 BOOK 0.00

80760 CCCCD MUNI PALO ALT 697379UA1 08/14/2012 1.402000 440,000.00 440,000.00 2,570.33 0.00

81514 AUHSD MUNI WICOMICO 967545R89 06/27/2013 3.500000 390,000.00 427,550.12 1,137.50 0.00

82387 CCCSIG MUNI MS ST T 605581FX0 02/18/2015 1.090000 110,000.00 110,000.00 299.75 0.00

10/01/2017 1.090000 110,000.00 100.000000 BOOK 0.00

82956 AUHSD MUNI CITY CHI 167486YX1 01/01/2016 5.000000 70,000.00 70,229.60 1,750.00 0.00

12/01/2018 1.638640 427,550.12 109.628236 BOOK 0.00

81633 CCCCD MUNI UNIV OF 91412GSZ9 10/02/2013 2.054000 195,000.00 195,000.00 511.79 0.00

05/15/2018 2.054000 195,000.00 100.000000 BOOK 0.00

Subtotal 3.128212 1,990,000.00 2,122,157.78 21,485.38 0.00

1.550194 2,122,157.78 106.641094 0.00

Inv Type: 31 MUNICIPAL BONDS



Page 19


Contra Costa County

As Of Date: 06/30/2016




07/26/2016 .632991 6,568,815.00 99.971528 IDC-FIS 0.00

82769 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 500,000.00 499,857.64 2,143.75 76.39

07/26/2016 .632991 497,637.50 99.971528 IDC-FIS 0.00


07/26/2016 .632991 497,637.50 99.971528 IDC-FIS 0.00

82768 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 6,600,000.00 6,598,120.83 28,297.50 1,008.33

Inv Type: 71 COMMERCIAL PAPER DISCOUNT

82448 CCCSIG AB CITIBANK 17305EFN0 03/20/2015 1.020000 600,000.00 599,179.69 2,193.00 0.00

02/22/2019 1.083588 599,179.69 99.863282 BOOK 0.00

1.083588 599,179.69 99.863282 0.00

Subtotal 1.020000 600,000.00 599,179.69 2,193.00 0.00

Inv Type: 53 CREDIT ABS FXD-SA 30/360

01/15/2021 1.326574 194,969.76 99.984492 BOOK 0.00

10/15/2019 1.059409 844,822.38 99.978980 BOOK 0.00

82502 CCCSIG ABS NAROT 20 65477UAC4 04/14/2015 1.050000 845,000.00 844,822.38 394.33 0.00

03/16/2020 1.343408 819,934.81 99.992050 BOOK 0.00

82636 CCCSIG ABS NISSAN A 65475WAD0 07/22/2015 1.340000 820,000.00 819,934.81 488.36 0.00

06/15/2017 .704310 84,924.37 99.994784 BOOK 0.00

82341 CCCSIG CORP HONDA A 43814KAB7 01/28/2015 .700000 84,928.80 84,924.37 26.42 0.00

07/17/2017 .710792 169,101.39 99.999048 BOOK 0.00

82409 CCCSIG AB TOYOTA AU 89236WAB4 03/04/2015 .710000 169,103.00 169,101.39 53.36 0.00

82665 CCCSIG ABS HONDA 20 43814MAC1 08/19/2015 1.270000 455,000.00 454,994.40 208.67 0.00

83008 CCCSIG ABS HYUNDAI 44930UAD8 03/30/2016 1.560000 260,000.00 259,949.56 180.27 0.00

09/15/2020 1.568722 259,949.56 99.980600 BOOK 0.00

83091 CCCSIG ABS CORP NIS 65478VAD9 04/27/2016 1.320000 195,000.00 194,969.76 114.40 0.00

04/18/2019 1.270662 454,994.40 99.998769 BOOK 0.00

82964 CCCSIG ABS TOYOTA C 89237KAD5 03/02/2016 1.250000 615,000.00 614,965.13 341.67 0.00

03/16/2020 1.252803 614,965.13 99.994330 BOOK 0.00

Subtotal 1.212290 3,444,031.80 3,443,661.80 1,807.48 0.00

1.217173 3,443,661.80 99.989257 0.00

Inv Type: 50 AUTO ABS FXD-M 30/360

.475034 1,463,053.75 99.935170 0.00



Page 20


Contra Costa County

As Of Date: 06/30/2016




82905 PW CP TOYOTA MOTOR 89233GGB6 01/13/2016 .790000 4,300,000.00 4,299,510.28 16,041.39 453.89

07/22/2016 .884258 24,879,611.11 99.976083 IDC-FIS 0.00

07/11/2016 .793133 4,283,015.00 99.988611 IDC-FIS 0.00

07/11/2016 .793133 1,095,655.00 99.988611 IDC-FIS 0.00


82897 CP UBS FINANCE DE 90262CGN1 01/07/2016 .880000 25,000,000.00 24,994,020.83 107,555.56 6,854.16

82879 CP RABOBANK NEDERLA 21687AGR8 01/05/2016 .800000 25,000,000.00 24,993,166.67 98,888.89 6,500.00

07/22/2016 .773391 24,890,381.94 99.976083 IDC-FIS 0.00

07/25/2016 .803607 24,887,777.78 99.972667 IDC-FIS 0.00

07/21/2016 .884236 24,880,222.22 99.977222 IDC-FIS 0.00

82896 CP UBS FINANCE DE 90262CGM3 01/07/2016 .880000 25,000,000.00 24,994,305.56 107,555.56 6,527.78

07/11/2016 .793133 1,992,100.00 99.988611 IDC-FIS 0.00


82916 CP CREDIT AGRICOLE 22533TGM2 01/20/2016 .850000 25,000,000.00 24,994,305.56 96,215.27 6,111.12

82919 CP CREDIT SUISSE NY 2254EAGV9 01/29/2016 .890000 25,000,000.00 24,992,027.78 95,180.55 9,333.34

07/21/2016 .853689 24,891,979.17 99.977222 IDC-FIS 0.00

07/26/2016 .632991 497,637.50 99.971528 IDC-FIS 0.00



82774 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 150,000.00 149,957.29 643.13 22.91

07/26/2016 .632991 248,818.75 99.971528 IDC-FIS 0.00


82872 CP SOCIETE GENERALE 83369BGN0 12/30/2015 .770000 25,000,000.00 24,994,020.83 98,388.89 5,250.00

07/26/2016 .632991 497,637.50 99.971528 IDC-FIS 0.00

07/26/2016 .632991 248,818.75 99.971528 IDC-FIS 0.00


07/26/2016 .632991 149,291.25 99.971528 IDC-FIS 0.00

82851 CCCSD CP ABBEY NATI 00280NGN4 12/21/2015 .740000 4,000,000.00 3,999,043.33 15,868.89 770.00

07/26/2016 .632991 248,818.75 99.971528 IDC-FIS 0.00

07/22/2016 .743270 3,982,404.44 99.976083 IDC-FIS 0.00

07/22/2016 .844216 4,975,033.33 99.976083 IDC-FIS 0.00

82853 CCCSD CP TOYOTA MOT 89233GGN0 12/21/2015 .840000 5,000,000.00 4,998,804.17 22,516.67 1,254.17

07/26/2016 .632991 248,818.75 99.971528 IDC-FIS 0.00




07/26/2016 .632991 248,818.75 99.971528 IDC-FIS 0.00



Page 21


Contra Costa County

As Of Date: 06/30/2016




83013 CP ABBEY NATL TREAS 00280NK74 04/01/2016 .810000 25,000,000.00 24,962,569.44 51,187.50 17,694.44

10/11/2016 .813533 24,891,437.50 99.844167 IDC-FIS 0.00

10/07/2016 .813459 24,893,687.50 99.850278 IDC-FIS 0.00

10/25/2016 .864212 24,878,166.67 99.822778 IDC-FIS 0.00

83014 CP BANK TOKYO-MIT U 06538BKR3 04/04/2016 .860000 25,000,000.00 24,955,694.44 52,555.55 24,972.22

83012 CP ABBEY NATL TREAS 00280NKB5 04/01/2016 .810000 25,000,000.00 24,961,041.67 51,187.50 18,416.67

83004 CP CREDIT SUISSE NY 2254EAJU8 03/30/2016 .920000 30,000,000.00 29,965,883.33 71,300.00 34,116.66

09/28/2016 .924299 29,860,466.67 99.886278 IDC-FIS 0.00

09/27/2016 .752839 24,905,729.17 99.887556 IDC-FIS 0.00

83005 CP TOYOTA MOTOR CRE 89233GJT4 03/30/2016 .750000 25,000,000.00 24,971,888.89 48,437.50 17,722.22

08/08/2016 .691617 24,941,541.67 99.956722 IDC-FIS 0.00

10/03/2016 .863714 24,892,500.00 99.856389 IDC-FIS 0.00

83015 CP BANK TOKYO-MIT U 06538BK36 04/06/2016 .860000 25,000,000.00 24,964,097.22 51,361.11 20,236.11

83037 CP JP MORGAN SECURI 46640PK51 04/08/2016 .870000 25,000,000.00 24,963,333.33 50,750.00 21,333.33

83038 CP BANK OF TOKYO MI 06538BH89 04/08/2016 .690000 25,000,000.00 24,989,180.56 40,250.00 7,388.89

10/05/2016 .873801 24,891,250.00 99.853333 IDC-FIS 0.00

82961 PW CP UBS FINANCE D 90262CJ99 03/01/2016 .850000 1,100,000.00 1,099,016.11 3,168.61 834.17

07/26/2016 .702075 24,926,111.11 99.971528 IDC-FIS 0.00

09/09/2016 .853871 1,095,013.33 99.910556 IDC-FIS 0.00

07/29/2016 .651659 29,923,625.00 99.968111 IDC-FIS 0.00

82979 CP TOYOTA MOTOR CRE 89233GGV2 03/10/2016 .650000 30,000,000.00 29,990,433.33 61,208.33 5,600.00

07/29/2016 .894023 24,887,513.89 99.968111 IDC-FIS 0.00

09/09/2016 .792853 24,910,027.78 99.910556 IDC-FIS 0.00

82948 PW CP BNP PARIBAS 09659BHF0 02/17/2016 .840000 500,000.00 499,743.75 1,575.00 268.75

82954 CP RABOBANK NEDERLA 21687AGS6 02/25/2016 .700000 25,000,000.00 24,992,881.94 61,736.11 5,034.72

08/15/2016 .843543 497,900.00 99.948750 IDC-FIS 0.00

82987 CP CREDIT SUISSE NY 2254EAHB2 03/17/2016 .820000 25,000,000.00 24,988,326.39 60,361.11 11,673.61

09/22/2016 .883976 1,986,026.93 99.893944 IDC-FIS 0.00

82995 CCCCD CP BTMUFJ 06538BJN4 03/22/2016 .880000 1,995,000.00 1,992,884.19 4,925.44 1,931.82

82999 CP BNP PARIBAS 09659BHS2 03/25/2016 .750000 25,000,000.00 24,984,055.56 51,041.66 13,222.23

83001 CP BNP PARIBAS 09659BJ92 03/29/2016 .790000 25,000,000.00 24,977,638.89 51,569.44 16,041.67

08/26/2016 .752414 24,919,791.67 99.936222 IDC-FIS 0.00

82989 CP TOYOTA MOTOR CRE 89233GHR0 03/18/2016 .700000 25,000,000.00 24,984,340.28 51,041.67 11,076.39

08/11/2016 .822755 24,916,291.67 99.953306 IDC-FIS 0.00

08/25/2016 .702185 24,922,222.22 99.937361 IDC-FIS 0.00

08/29/2016 .762592 29,898,033.33 99.932806 IDC-FIS 0.00

82991 CP CREDIT AGRICOLE 22533THV1 03/21/2016 .760000 30,000,000.00 29,979,841.67 64,600.00 17,208.34



Page 22


Contra Costa County

As Of Date: 06/30/2016




83113 PW CP CREDIT AGRICO 22533TLJ3 05/20/2016 .920000 201,000.00 200,507.55 215.74 226.68

11/18/2016 .924298 1,499,990.78 99.755000 IDC-FIS 0.00

11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00

11/18/2016 .924297 550,427.94 99.755000 IDC-FIS 0.00


83112 PW CP CREDIT AGRICO 22533TLJ3 05/20/2016 .920000 1,507,000.00 1,503,307.85 1,617.51 1,699.56

83098 PW CP BNP PARIBAS N 09659BL99 05/09/2016 .900000 1,000,000.00 997,707.50 1,325.00 982.50

01/26/2017 1.058459 4,960,041.67 99.529750 IDC-FIS 0.00

11/09/2016 .904159 995,400.00 99.770750 IDC-FIS 0.00

11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00


11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00




11/18/2016 .924301 400,130.25 99.755000 IDC-FIS 0.00

10/26/2016 .853992 24,883,125.00 99.821250 IDC-FIS 0.00

83059 CP BANK OF TOKYO MI 06538BKS1 04/11/2016 .850000 25,000,000.00 24,955,312.50 47,812.50 24,375.00

83061 CP UNION BANK OF CA 62478XHF0 04/12/2016 .600000 25,000,000.00 24,987,187.50 33,333.33 5,937.50

83072 CP JP MORGAN SECURI 46640PKH5 04/18/2016 .870000 25,000,000.00 24,958,750.00 44,708.33 24,000.00

08/15/2016 .601253 24,947,916.67 99.948750 IDC-FIS 0.00

83057 CP RABOBANK NEDERLA 21687AKT9 04/11/2016 .810000 30,000,000.00 29,945,916.67 54,675.00 25,566.67

83088 CCCSD CP STANDARD C 85324TNS1 04/27/2016 1.050000 5,000,000.00 4,976,487.50 9,479.17 6,966.66

10/27/2016 .813643 29,865,675.00 99.819722 IDC-FIS 0.00

10/31/2016 .854094 14,928,104.17 99.786500 IDC-FIS 0.00

83058 CP BANK OF TOKYO MI 06538BKX0 04/11/2016 .850000 15,000,000.00 14,967,975.00 28,687.50 11,183.33

10/17/2016 .873843 24,890,041.67 99.835000 IDC-FIS 0.00

83082 CCCSD CP CREDIT AGR 22533TKR6 04/26/2016 .870000 5,000,000.00 4,991,138.89 7,975.00 5,155.56

07/19/2016 .620962 24,961,250.00 99.979500 IDC-FIS 0.00

10/25/2016 .873844 4,978,008.33 99.822778 IDC-FIS 0.00

01/20/2017 1.037959 4,961,661.11 99.543250 IDC-FIS 0.00

83087 CCCSD CP JP MORGAN 46640PNL3 04/27/2016 1.030000 5,000,000.00 4,977,162.50 9,298.61 6,202.78

09/12/2016 .832880 24,913,541.67 99.906722 IDC-FIS 0.00

83073 CP CREDIT SUISSE NY 2254EAJC8 04/15/2016 .830000 25,000,000.00 24,976,680.56 44,381.94 18,756.95

83076 CP RABOBANK NEDERLA 21687AKM4 04/20/2016 .830000 25,000,000.00 24,957,222.22 41,500.00 21,777.78

83077 CP STANDARD CHARTER 85324TGK6 04/20/2016 .620000 25,000,000.00 24,994,875.00 31,000.00 2,625.00

10/21/2016 .833536 24,893,944.44 99.828889 IDC-FIS 0.00



Page 23


Contra Costa County

As Of Date: 06/30/2016





11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00

11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00

11/18/2016 .924357 49,767.43 99.755000 IDC-FIS 0.00




11/18/2016 .924299 3,200,046.68 99.755000 IDC-FIS 0.00

11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00


11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00

11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00




11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00


11/18/2016 .924299 349,367.46 99.755000 IDC-FIS 0.00

11/18/2016 .924299 500,660.49 99.755000 IDC-FIS 0.00

11/18/2016 .924301 124,418.61 99.755000 IDC-FIS 0.00


11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00

11/18/2016 .924300 499,665.14 99.755000 IDC-FIS 0.00



11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00


11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00




11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00


11/18/2016 .924299 500,660.49 99.755000 IDC-FIS 0.00

11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00

11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00




Page 24


Contra Costa County

As Of Date: 06/30/2016




83157 HR CP BNP PARIBAS 09659BGV6 05/31/2016 .480000 2,644,000.00 2,643,156.86 1,092.86 143.95

07/29/2016 .480379 2,998,639.21 99.968111 IDC-FIS 0.00

07/29/2016 .480379 2,641,920.05 99.968111 IDC-FIS 0.00

07/29/2016 .480378 5,796,436.55 99.968111 IDC-FIS 0.00




11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00

11/18/2016 .924299 1,999,655.92 99.755000 IDC-FIS 0.00

11/18/2016 .924299 349,367.46 99.755000 IDC-FIS 0.00


11/22/2016 .813165 29,883,225.00 99.748000 IDC-FIS 0.00

83159 CP CREDIT AGRICOLE 22533TLN4 06/02/2016 .810000 30,000,000.00 29,924,400.00 19,575.00 21,600.00

83162 CP JP MORGAN SECURI 46640PLN1 06/01/2016 .900000 25,000,000.00 24,937,000.00 18,750.00 27,000.00

83163 CP JP MORGAN SECURI 46640PLP6 06/01/2016 .900000 25,000,000.00 24,936,562.50 18,750.00 27,187.50

11/22/2016 .903932 24,891,250.00 99.748000 IDC-FIS 0.00

11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00




11/18/2016 .924300 1,000,325.63 99.755000 IDC-FIS 0.00



11/18/2016 .924317 74,651.16 99.755000 IDC-FIS 0.00

11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00


11/18/2016 .924296 299,600.02 99.755000 IDC-FIS 0.00


11/18/2016 .924296 200,065.13 99.755000 IDC-FIS 0.00

11/18/2016 .924300 750,493.06 99.755000 IDC-FIS 0.00

11/18/2016 .924297 99,534.89 99.755000 IDC-FIS 0.00


11/18/2016 .924299 1,200,390.76 99.755000 IDC-FIS 0.00




11/18/2016 .924302 150,297.68 99.755000 IDC-FIS 0.00



Page 25


Contra Costa County

As Of Date: 06/30/2016




11/16/2017 1.480000 2,175,000.00 100.000000 BOOK 0.00

82798 CCCSIG YCD SKANDINA 83050FBG5 11/17/2015 1.480000 2,175,000.00 2,175,000.00 20,297.58 0.00

07/22/2016 .640000 5,000,000.00 100.020711 IDC-FIS 0.00

82852 CCCSD NCD MUFG UNIO 62478TMC0 12/21/2015 .640000 5,000,000.00 5,001,035.57 17,155.56 1,035.57

05/26/2017 1.150000 1,950,000.00 100.209079 IDC-FIS 0.00

82576 CCCSIG YCD NORDEA B 65558LFA5 05/29/2015 1.150000 1,950,000.00 1,954,077.04 2,242.50 4,077.04

82857 YCD SOCIETE GENERAL 83369TR66 12/23/2015 .850000 25,000,000.00 25,003,047.88 112,743.06 3,047.88

07/22/2016 .840000 25,000,000.00 100.032913 IDC-FIS 0.00

82856 YCD NORDEA BANK FIN 65558LMA7 12/23/2015 .840000 25,000,000.00 25,008,228.17 111,416.67 8,228.17

12/22/2016 .820000 500,000.00 100.144369 IDC-FIS 0.00

82854 PW NCD UNION BANK O 62478TMF3 12/22/2015 .820000 500,000.00 500,721.84 2,186.67 721.84

07/22/2016 .870000 25,000,000.00 100.034743 IDC-FIS 0.00

82855 YCD STANDARD CHARTE 85325TEY7 12/23/2015 .870000 25,000,000.00 25,008,685.70 115,395.83 8,685.70

Inv Type: 72 NEGOTIABLE CERT OF DEPOSIT

07/14/2016 .400133 899,700.00 99.985194 IDC-FIS -3.25

83170 PW CP BNP PARIBAS 09659BGE4 06/14/2016 .400000 900,000.00 899,866.75 170.00 0.00

11/14/2016 .782475 19,936,733.33 99.762000 IDC-FIS 0.00

83173 CP ABBEY NATIONAL T 00280NLE8 06/21/2016 .780000 20,000,000.00 19,952,400.00 4,333.33 11,333.34

83169 PW CP BNP PARIBAS 09659BGE4 06/14/2016 .400000 764,000.00 763,886.89 144.31 0.00

11/23/2016 .903955 24,890,625.00 99.746250 IDC-FIS 0.00

07/14/2016 .400139 763,745.33 99.985194 IDC-FIS -2.75

83188 CP BNP PARIBAS 09659BMP2 06/27/2016 .880000 25,000,000.00 24,923,437.50 2,444.44 30,381.95

83175 CCCCD CP BNP PARIBA 09659BQH6 06/21/2016 1.030000 1,995,000.00 1,980,216.50 570.79 0.01

12/22/2016 .843484 24,896,750.00 99.695500 IDC-FIS 0.00

83182 CP SOCIETE GENERALE 83369BMN3 06/28/2016 .840000 25,000,000.00 24,923,875.00 1,750.00 25,375.00

12/23/2016 .883867 24,890,611.11 99.693750 IDC-FIS 0.00

12/23/2016 .914113 24,887,513.89 99.693750 IDC-FIS 0.00

83183 CP STANDARD CHARTER 85324TMP8 06/28/2016 .910000 25,000,000.00 24,923,437.50 1,895.83 34,027.78

83176 CP STANDARD CHARTER 85324TM94 06/22/2016 .900000 25,000,000.00 24,929,562.50 5,625.00 30,187.50

03/17/2017 1.037989 1,979,645.70 99.258972 IDC-FIS 0.00

12/09/2016 .903841 24,893,750.00 99.718250 IDC-FIS 0.00

12/12/2016 .954332 19,909,222.22 99.713000 IDC-FIS 0.00

83179 CP STANDARD CHARTER 85324TMC7 06/23/2016 .950000 20,000,000.00 19,942,600.00 4,222.22 29,155.56

Subtotal .811041 1,032,625,000.00 1,031,229,380.45 1,995,783.06 698,719.78

.814347 1,028,534,883.61 99.864847 -6.00



Page 26


Contra Costa County

As Of Date: 06/30/2016




82942 PW YCD BNP PARIBAS 05572NK62 02/10/2016 1.120000 500,000.00 501,046.70 2,208.89 1,046.70

07/26/2016 .850000 25,000,000.00 100.039635 IDC-FIS 0.00

02/10/2017 1.120000 500,000.00 100.209341 IDC-FIS 0.00

08/08/2016 .840000 500,000.00 100.058374 IDC-FIS 0.00

82943 PW YCD BNP PARIBAS 05572NK54 02/10/2016 .840000 500,000.00 500,291.87 1,656.67 291.87

82923 YCD ROYAL BANK OF C 78009NZK5 01/28/2016 .850000 25,000,000.00 25,009,908.71 91,493.06 9,908.71

82921 KFPD YCD BNP PARIBA 05572NJ64 01/27/2016 1.120000 250,000.00 250,490.44 1,213.33 490.44

01/27/2017 1.120000 250,000.00 100.196176 IDC-FIS 0.00

07/28/2016 .830000 25,000,000.00 100.041130 IDC-FIS 0.00

82922 YCD SOCIETE GENERAL 83369TU96 01/28/2016 .830000 25,000,000.00 25,010,282.44 89,340.28 10,282.44

03/09/2018 1.700000 1,305,000.00 100.000000 BOOK 0.00

07/29/2016 .760000 25,000,000.00 100.036982 IDC-FIS 0.00

82953 YCD SOCIETE GENERAL 83369TZ59 02/24/2016 .760000 25,000,000.00 25,009,245.46 67,555.56 9,245.46

82977 YCD BNP PARIBAS 05572NL20 03/10/2016 .670000 10,000,000.00 10,002,974.80 21,030.56 2,974.80

82982 CCCSIG YCD ROYAL BA 78009NZZ2 03/15/2016 1.700000 1,305,000.00 1,305,000.00 6,655.50 0.00

07/29/2016 .670000 10,000,000.00 100.029748 IDC-FIS 0.00

82860 YCD NORDEA BANK FIN 65558LMA7 12/23/2015 .840000 25,000,000.00 25,008,228.17 111,416.67 8,228.17

07/11/2016 .800000 20,000,000.00 100.015238 IDC-FIS 0.00

07/22/2016 .840000 25,000,000.00 100.032913 IDC-FIS 0.00

07/27/2016 .820000 30,000,000.00 100.038900 IDC-FIS 0.00

82878 YCD CREDIT AGRICOLE 22534HCH2 01/04/2016 .820000 30,000,000.00 30,011,670.01 122,316.67 11,670.01

07/08/2016 .850000 25,000,000.00 100.012192 IDC-FIS 0.00

01/25/2017 1.120000 250,000.00 100.194297 IDC-FIS 0.00

82858 YCD RABOBANK NEDERL 21685VKX6 12/23/2015 .830000 25,000,000.00 25,008,075.66 110,090.28 8,075.66

82859 YCD ABBEY NATL TREA 00279JBF8 12/23/2015 .800000 20,000,000.00 20,003,047.54 84,888.89 3,047.54

07/22/2016 .830000 25,000,000.00 100.032303 IDC-FIS 0.00

82898 NCD WELLS FARGO BAN 94988EN79 01/08/2016 .830000 25,000,000.00 25,005,140.48 100,868.06 5,140.48

01/13/2017 1.140000 110,000.00 100.193915 IDC-FIS 0.00

82915 AUHSD YCD BNP PARIB 05572NH58 01/15/2016 1.140000 110,000.00 110,213.31 585.20 213.31

82918 NCD WELLS FARGO BAN 94988EPM4 01/22/2016 .830000 25,000,000.00 25,007,711.68 92,798.61 7,711.68

82920 KFPD YCD BNP PARIBA 05572NJ31 01/25/2016 1.120000 250,000.00 250,485.74 1,228.89 485.74

07/21/2016 .830000 25,000,000.00 100.030847 IDC-FIS 0.00

82911 AUHSD YCD BNP PARIB 05572NH58 01/15/2016 1.140000 1,600,000.00 1,603,102.64 8,512.00 3,102.64

07/14/2016 .830000 25,000,000.00 100.020562 IDC-FIS 0.00

01/13/2017 1.140000 1,600,000.00 100.193915 IDC-FIS 0.00

07/21/2016 .840000 25,000,000.00 100.031426 IDC-FIS 0.00

82912 YCD BNP PARIBAS 05572NH41 01/15/2016 .840000 25,000,000.00 25,007,856.58 98,000.00 7,856.58



Page 27


Contra Costa County

As Of Date: 06/30/2016




83028 PW YCD STANDARD CHA 85325THG3 04/07/2016 .620000 5,600,000.00 5,600,298.25 8,197.78 298.25

07/06/2016 .620000 21,800,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 5,600,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 440,000.00 100.005326 IDC-FIS 0.00

83029 PW YCD STANDARD CHA 85325THG3 04/07/2016 .620000 440,000.00 440,023.43 644.11 23.43

83027 PW YCD STANDARD CHA 85325THG3 04/07/2016 .620000 21,800,000.00 21,801,161.03 31,912.78 1,161.03


07/06/2016 .620000 3,100,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 3,000,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 875,000.00 100.005326 IDC-FIS 0.00

83026 PW YCD STANDARD CHA 85325THG3 04/07/2016 .620000 875,000.00 875,046.60 1,280.90 46.60

07/06/2016 .620000 2,300,000.00 100.005326 IDC-FIS 0.00


83031 PW YCD STANDARD CHA 85325THG3 04/07/2016 .620000 500,000.00 500,026.63 731.94 26.63


07/06/2016 .620000 500,000.00 100.005326 IDC-FIS 0.00

07/01/2016 .550000 15,000,000.00 100.000693 IDC-FIS 0.00

82998 NCD UNION BANK OF C 62478TPK9 03/23/2016 .550000 15,000,000.00 15,000,103.98 22,916.67 103.98

83002 YCD CREDIT SUISSE N 22549VD42 03/29/2016 .910000 25,000,000.00 25,031,291.68 59,402.78 31,291.68

83003 NCD UNION BANK OF C 62478TPP8 03/29/2016 .770000 25,000,000.00 25,027,688.22 50,263.89 27,688.22

09/12/2016 .910000 25,000,000.00 100.125167 IDC-FIS 0.00

82983 CCCSIG YCD TORONTO 89113E5E2 03/16/2016 1.720000 2,025,000.00 2,025,000.00 10,352.25 0.00


03/14/2018 1.720000 2,025,000.00 100.000000 BOOK 0.00

08/10/2016 .705000 25,000,505.49 100.046608 IDC-FIS 0.00

82988 YCD SVENSKA HANDELS 86958DY89 03/17/2016 .710000 25,000,000.00 25,011,651.94 52,263.89 11,146.45

09/23/2016 .770000 25,000,000.00 100.110753 IDC-FIS 0.00


07/06/2016 .620000 1,000,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 2,200,000.00 100.005326 IDC-FIS 0.00

07/06/2016 .620000 2,600,000.00 100.005326 IDC-FIS 0.00


10/03/2016 .920000 25,000,000.00 100.105113 IDC-FIS 0.00

83016 YCD SOCIETE GENERAL 83369T3L9 04/06/2016 .920000 25,000,000.00 25,026,278.31 54,944.44 26,278.31



07/06/2016 .620000 5,000,000.00 100.005326 IDC-FIS 0.00



Page 28


Contra Costa County

As Of Date: 06/30/2016




83049 PW YCD ABBEY NATL T 00279JCW0 04/11/2016 .760000 500,000.00 500,341.57 855.00 341.57

10/11/2016 .760000 700,000.00 100.068314 IDC-FIS 0.00

10/11/2016 .760000 500,000.00 100.068314 IDC-FIS 0.00

10/11/2016 .760000 4,000,000.00 100.068314 IDC-FIS 0.00

83050 YCD ABBEY NATL TREA 00279JCW0 04/11/2016 .760000 4,000,000.00 4,002,732.55 6,840.00 2,732.55

83048 PW YCD ABBEY NATL T 00279JCW0 04/11/2016 .760000 700,000.00 700,478.20 1,197.00 478.20

83046 PW YCD ABBEY NATL T 00279JCW0 04/11/2016 .760000 750,000.00 750,512.35 1,282.50 512.35

10/11/2016 .760000 750,000.00 100.068314 IDC-FIS 0.00

10/11/2016 .760000 4,550,000.00 100.068314 IDC-FIS 0.00

83047 PW YCD ABBEY NATL T 00279JCW0 04/11/2016 .760000 4,550,000.00 4,553,108.28 7,780.50 3,108.28

10/18/2016 .960000 25,000,000.00 100.133935 IDC-FIS 0.00

07/11/2016 .620000 25,000,000.00 100.009764 IDC-FIS 0.00

83060 YCD STANDARD CHARTE 85325THM0 04/12/2016 .620000 25,000,000.00 25,002,441.10 34,444.44 2,441.10

83065 YCD STANDARD CHARTE 85325THP3 04/13/2016 .620000 25,000,000.00 25,002,663.04 34,013.89 2,663.04

83080 YCD CREDIT SUISSE N 22549VT45 04/21/2016 .960000 25,000,000.00 25,033,483.76 47,333.33 33,483.76

07/12/2016 .620000 25,000,000.00 100.010652 IDC-FIS 0.00

83035 NCD BANK OF AMERICA 06052TSS0 04/08/2016 .580000 25,000,000.00 25,001,359.08 33,833.33 1,359.08

07/06/2016 .620000 4,550,000.00 100.005326 IDC-FIS 0.00

07/07/2016 .580000 25,000,000.00 100.005436 IDC-FIS 0.00

09/06/2016 .800000 25,000,000.00 100.094286 IDC-FIS 0.00

83036 YCD CREDIT AGRICOLE 22534HGR6 04/08/2016 .800000 25,000,000.00 25,023,571.62 46,666.67 23,571.62

07/06/2016 .620000 3,700,000.00 100.005326 IDC-FIS 0.00

10/11/2016 .760000 1,500,000.00 100.068314 IDC-FIS 0.00



07/06/2016 .620000 6,000,000.00 100.005326 IDC-FIS 0.00


10/11/2016 .760000 100,000.00 100.068314 IDC-FIS 0.00




10/11/2016 .760000 1,500,000.00 100.068314 IDC-FIS 0.00


10/11/2016 .760000 500,000.00 100.068314 IDC-FIS 0.00

10/11/2016 .760000 5,600,000.00 100.068314 IDC-FIS 0.00

10/11/2016 .760000 300,000.00 100.068314 IDC-FIS 0.00




Page 29


Contra Costa County

As Of Date: 06/30/2016




10/05/2017 1.545080 4,944,500.00 100.407000 IDC-FIS 0.00

81703 CORP TOYOTA MTR CRD 89233P6S0 11/15/2013 1.250000 5,000,000.00 5,020,350.00 14,930.56 75,850.00

81789 CORP MICROSOFT CORP 594918AV6 01/10/2014 1.625000 6,406,000.00 6,517,592.52 7,228.99 149,131.68

81813 CORP INTEL STRUCTUR 458140AL4 01/27/2014 1.350000 5,211,000.00 5,241,901.23 3,126.61 62,271.45

12/06/2018 1.750063 6,368,460.84 101.742000 IDC-FIS 0.00

81217 CCCCD CORP BERKSHIR 084670BH0 02/11/2013 1.550000 245,000.00 247,844.45 1,497.90 3,185.00

12/05/2017 1.104000 105,000.00 100.165000 IDC-FIS 0.00

02/09/2018 1.579059 244,659.45 101.161000 IDC-FIS 0.00

05/03/2018 1.076001 174,354.25 100.246000 IDC-FIS 0.00

81413 CCCCD CORP APPLE IN 037833AJ9 05/03/2013 1.000000 175,000.00 175,430.50 281.94 1,076.25

81899 CORP WELLS FARGO & 94974BFG0 04/07/2014 1.500000 5,000,000.00 5,028,000.00 34,375.00 68,100.00

12/15/2017 1.510075 5,179,629.78 100.593000 IDC-FIS 0.00

01/16/2018 1.720116 4,959,900.00 100.560000 IDC-FIS 0.00

82116 CCCSIG CORP WELLS F 94974BGB0 09/09/2014 1.400000 810,000.00 812,494.80 3,559.50 3,296.70

81054 CCCCD CORP CHEVRON 166764AA8 12/05/2012 1.104000 105,000.00 105,173.25 83.72 173.25

Inv Type: 75 CORPORATE NOTES

82760 CCCSIG MTN BMO HARR 05574BFW5 10/23/2015 1.000000 2,175,000.00 2,158,491.75 15,225.00 0.00

04/24/2017 1.000000 2,175,000.00 99.241000 IDC-FIS -16,508.25

Subtotal 1.000000 2,175,000.00 2,158,491.75 15,225.00 0.00

1.000000 2,175,000.00 99.241000 -16,508.25

Inv Type: 74 CERT OF DEPOSIT MEDIUM TERM

04/27/2017 1.180000 5,000,000.00 100.214128 IDC-FIS 0.00

83102 YCD CREDIT AGRICOLE 22534HJR3 05/17/2016 .900000 25,000,000.00 25,034,977.20 28,125.00 34,977.20

83089 CCCSD YCD ABBEY NAT 00279JDD1 04/27/2016 1.180000 5,000,000.00 5,010,706.41 10,652.78 10,706.41

83083 CCCSD YCD BNP PARIB 05572NM52 04/26/2016 .880000 5,000,000.00 5,005,876.44 8,066.67 5,876.44

10/26/2016 .880000 5,000,000.00 100.117529 IDC-FIS 0.00

11/10/2016 .900000 25,000,000.00 100.139909 IDC-FIS 0.00

83181 YCD ROYAL BANK OF C 78009ND52 06/28/2016 .810000 25,000,000.00 25,033,949.10 1,687.50 33,949.10

12/16/2016 .810000 25,000,000.00 100.135796 IDC-FIS 0.00

83174 CCCCD YCD UBS AG ST 90275DAU4 06/21/2016 .980000 1,900,000.00 1,902,256.76 517.22 2,256.76

01/31/2017 .980000 1,900,000.00 100.118777 IDC-FIS 0.00

.793976 735,730,505.49 100.051767 0.00

Subtotal .794145 735,730,000.00 736,110,867.27 2,014,716.33 380,361.78



Page 30


Contra Costa County

As Of Date: 06/30/2016




82375 CCCSIG CORP IBM COR 459200HZ7 02/06/2015 1.125000 1,880,000.00 1,888,084.00 8,518.75 13,818.00

01/30/2017 .828281 1,990,751.40 100.049000 IDC-FIS -9,781.20

02/06/2018 1.228864 1,874,266.00 100.430000 IDC-FIS 0.00

02/06/2018 1.228864 159,512.00 100.430000 IDC-FIS 0.00

82376 CCCCD CORP IBM CORP 459200HZ7 02/06/2015 1.125000 160,000.00 160,688.00 725.00 1,176.00

82371 CCCCD CORP US BANK 90331HMC4 01/23/2015 1.100000 1,980,000.00 1,980,970.20 9,135.50 0.00

82368 CCCCD CORP JOHN DEE 24422ERF8 01/23/2015 1.850000 1,950,000.00 1,954,485.00 10,622.08 0.00

09/15/2016 .616979 1,989,273.00 100.230000 IDC-FIS -34,788.00

09/19/2016 .840060 1,966,245.75 100.425000 IDC-FIS -53,149.50

82370 CCCCD CORP AMERICAN 0258M0DC0 01/23/2015 2.800000 1,905,000.00 1,913,096.25 15,112.99 0.00

03/06/2018 1.305000 1,565,000.00 100.780000 IDC-FIS 0.00

02/06/2018 1.274939 4,978,100.00 100.430000 IDC-FIS 0.00

82386 CORP IBM CORP 459200HZ7 02/11/2015 1.125000 5,000,000.00 5,021,500.00 22,656.25 43,400.00

82404 CCCSIG CORP CHEVRON 166764AV2 03/03/2015 1.365000 1,065,000.00 1,070,846.85 4,805.37 5,846.85

82416 CCCSIG CORP EXXON M 30231GAL6 03/06/2015 1.305000 1,565,000.00 1,577,207.00 6,524.10 12,207.00

03/02/2018 1.365000 1,065,000.00 100.549000 IDC-FIS 0.00

82290 CCCSIG CORP TOYOTA 89236TCA1 01/12/2015 1.450000 220,000.00 221,603.80 1,497.53 1,905.20

12/05/2017 1.250044 9,957,510.00 100.165000 IDC-FIS 0.00

01/12/2018 1.496870 219,698.60 100.729000 IDC-FIS 0.00

09/15/2016 .616979 1,591,418.40 100.230000 IDC-FIS -27,830.40

82348 CCCCD CORP JOHN DEE 24422ERF8 01/23/2015 1.850000 1,560,000.00 1,563,588.00 8,497.67 0.00

09/08/2017 1.433868 809,198.10 100.308000 IDC-FIS 0.00

07/22/2016 .490189 2,002,630.00 100.059000 IDC-FIS -41,473.60

82197 CCCSIG CORP CHEVRON 166764AL4 11/18/2014 1.345000 350,000.00 351,827.00 601.51 1,827.00

82258 CORP CHEVRON CORP 166764AA8 12/15/2014 1.104000 10,000,000.00 10,016,500.00 7,973.33 58,990.00

11/15/2017 1.345000 350,000.00 100.522000 IDC-FIS 0.00

82349 CCCCD CORP IBM CORP 459200GX3 01/23/2015 1.950000 1,565,000.00 1,565,923.35 13,478.56 0.00

01/30/2017 .828281 1,593,606.55 100.049000 IDC-FIS -7,829.90

82353 CCCCD CORP US BANK 90331HMC4 01/23/2015 1.100000 1,585,000.00 1,585,776.65 7,313.01 0.00

82366 CCCCD CORP WELLS FA 94974BFL9 01/23/2015 1.250000 1,985,000.00 1,985,456.55 11,096.70 0.00

82367 CCCCD CORP IBM CORP 459200GX3 01/23/2015 1.950000 1,960,000.00 1,961,156.40 16,880.50 0.00

07/20/2016 .787164 1,998,597.25 100.023000 IDC-FIS -13,140.70

82351 CCCCD CORP AMERICAN 0258M0DC0 01/23/2015 2.800000 1,525,000.00 1,531,481.25 12,098.33 0.00

07/22/2016 .490189 1,599,038.75 100.059000 IDC-FIS -33,115.40

09/19/2016 .840060 1,574,028.75 100.425000 IDC-FIS -42,547.50

07/20/2016 .787164 1,600,891.50 100.023000 IDC-FIS -10,525.80

82352 CCCCD CORP WELLS FA 94974BFL9 01/23/2015 1.250000 1,590,000.00 1,590,365.70 8,888.55 0.00



Page 31


Contra Costa County

As Of Date: 06/30/2016




82658 CCCSIG CORP 3M COMP 88579YAP6 08/07/2015 1.375000 1,340,000.00 1,353,239.20 7,370.00 15,624.40

07/17/2017 1.139621 99,968.00 100.268000 IDC-FIS 0.00

08/07/2018 1.435833 1,337,614.80 100.988000 IDC-FIS 0.00

03/01/2018 1.769114 4,991,700.00 100.554000 IDC-FIS 0.00

82693 CORP JP MORGAN CHAS 46623EKD0 09/15/2015 1.700000 5,000,000.00 5,027,700.00 28,333.33 36,000.00

82634 CCCCD CORP PEPSICO 713448CW6 07/17/2015 1.125000 100,000.00 100,268.00 512.50 300.00

82620 CCCSIG CORP TOYOTA 89236TCP8 07/13/2015 1.550000 410,000.00 413,940.10 2,965.67 4,288.60

09/08/2017 1.252137 1,103,465.00 100.308000 IDC-FIS -77.00

07/13/2018 1.579121 409,651.50 100.961000 IDC-FIS 0.00

07/13/2018 1.567156 4,997,500.00 100.961000 IDC-FIS 0.00

82621 CORP TOYOTA MOTOR C 89236TCP8 07/16/2015 1.550000 5,000,000.00 5,048,050.00 36,166.67 50,550.00

01/15/2017 .739645 1,553,193.00 100.064000 IDC-FIS -2,201.00

82712 CCCCD CORP PFIZER I 717081DD2 09/29/2015 .900000 1,550,000.00 1,550,992.00 6,432.50 0.00

82713 CCCCD CORP PFIZER I 717081DL4 09/29/2015 2.100000 1,960,000.00 2,006,471.60 5,259.33 22,402.80

82714 CCCCD CORP GOLDMAN 38147MAA3 09/29/2015 2.900000 1,510,000.00 1,549,516.70 19,705.50 0.00

05/15/2019 1.748923 1,984,068.80 102.371000 IDC-FIS 0.00

03/13/2018 1.545883 129,825.80 100.979000 IDC-FIS 0.00

82420 CCCCD CORP AMERICAN 02665WAT8 03/13/2015 1.500000 130,000.00 131,272.70 585.00 1,446.90

82513 CCCCD CORP GENERAL 36962G4D3 04/15/2015 6.000000 100,000.00 114,552.00 2,400.00 0.00

82554 CORP APPLE INC 037833AJ9 05/12/2015 1.000000 10,000,000.00 10,024,600.00 16,111.11 99,500.00

08/07/2019 1.743001 117,603.00 114.552000 IDC-FIS -3,051.00

82417 CCCCD CORP EXXON MO 30231GAL6 03/06/2015 1.305000 125,000.00 125,975.00 521.09 975.00

82598 CCCSIG CORP WELLS F 94974BGB0 07/07/2015 1.400000 1,100,000.00 1,103,388.00 4,833.89 0.00

03/06/2018 1.305000 125,000.00 100.780000 IDC-FIS 0.00

03/02/2018 1.372881 4,999,089.53 100.549000 IDC-FIS 0.00

82418 CORP CHEVRON CORP 166764AV2 03/09/2015 1.365000 5,000,000.00 5,027,450.00 22,560.42 28,360.47

05/03/2018 1.257267 9,925,100.00 100.246000 IDC-FIS 0.00

82586 CCCSIG CORP CISCO S 17275RAU6 06/17/2015 1.650000 1,725,000.00 1,747,425.00 1,265.00 22,718.25

05/15/2018 1.658000 4,995,250.00 100.391000 IDC-FIS 0.00

06/15/2018 1.655855 1,724,706.75 101.300000 IDC-FIS 0.00

06/15/2018 1.655855 129,977.90 101.300000 IDC-FIS 0.00

82587 CCCCD CORP CISCO SY 17275RAU6 06/17/2015 1.650000 130,000.00 131,690.00 95.33 1,712.10

05/22/2018 1.603145 1,599,856.00 100.995000 IDC-FIS 0.00

82574 CCCSIG CORP BK OF N 06406HDB2 05/29/2015 1.600000 1,600,000.00 1,615,920.00 2,773.33 16,064.00

82575 CCCCD CORP BK OF NE 06406HDB2 05/29/2015 1.600000 125,000.00 126,243.75 216.67 1,255.00

82581 CORP JP MORGAN CHAS 46625HJL5 06/02/2015 1.625000 5,000,000.00 5,019,550.00 10,381.94 24,300.00

05/22/2018 1.603145 124,988.75 100.995000 IDC-FIS 0.00



Page 32


Contra Costa County

As Of Date: 06/30/2016




82960 CCCSIG CORP CISCO S 17275RBA9 02/29/2016 1.400000 940,000.00 948,516.40 4,459.78 8,516.40

02/19/2019 1.704120 869,895.60 101.278000 IDC-FIS 0.00

02/28/2018 1.400000 940,000.00 100.906000 IDC-FIS 0.00

03/01/2019 1.129079 719,913.60 100.582000 IDC-FIS 0.00

82962 CCCSIG CORP JOHNSON 478160BR4 03/01/2016 1.125000 720,000.00 724,190.40 2,700.00 4,276.80

82925 KFPD CORP HSBC 40428HPH9 01/25/2016 1.625000 250,000.00 249,555.00 1,861.98 180.00

82940 CORP IBM CORP 459200HZ7 02/08/2016 1.125000 5,000,000.00 5,021,500.00 22,656.25 25,550.00

82950 CCCSIG CORP TOYOTA 89236TCU7 02/19/2016 1.700000 870,000.00 881,118.60 5,423.00 11,223.00

02/06/2018 1.166196 4,996,262.50 100.430000 IDC-FIS 0.00

82975 CORP WELLS FARGO & 949746RS2 03/07/2016 2.500000 5,000,000.00 5,127,200.00 40,625.00 137,450.00

05/16/2019 1.657877 4,988,168.06 101.120000 IDC-FIS 0.00

83151 CORP CHEVRON 166764BH2 05/26/2016 1.561000 5,000,000.00 5,056,000.00 9,756.25 70,000.00

82984 CCCSIG CORP BERKSHI 084664CG4 03/15/2016 1.700000 330,000.00 335,392.20 1,651.83 5,643.00

03/04/2021 2.543964 4,990,791.67 102.544000 IDC-FIS 0.00

03/15/2019 1.726104 329,749.20 101.634000 IDC-FIS 0.00

03/01/2019 1.708000 3,501,992.67 101.625000 IDC-FIS 0.00

82985 CORP EXXON MOBIL CO 30231GAP7 03/15/2016 1.708000 3,500,000.00 3,556,875.00 19,594.56 56,875.00

82717 CCCCD CORP US BANCO 91159HHH6 09/29/2015 2.200000 1,950,000.00 1,999,920.00 7,865.00 16,984.50

06/01/2019 1.599996 1,529,290.00 108.885000 IDC-FIS -4,900.00

04/25/2019 1.710407 1,982,935.50 102.560000 IDC-FIS 0.00

02/15/2019 1.739996 1,983,187.80 109.881000 IDC-FIS -10,823.85

82718 CCCCD CORP CISCO SY 17275RAE2 09/29/2015 4.950000 1,795,000.00 1,972,363.95 33,566.50 0.00

07/19/2018 1.927831 1,549,879.10 102.617000 IDC-FIS -362.40

01/16/2018 1.754255 249,476.56 99.822000 IDC-FIS 0.00

82715 CCCCD CORP GOLDMAN 38147MAA3 09/29/2015 2.900000 1,930,000.00 1,980,508.10 25,186.50 0.00

82716 CCCCD CORP MICROSOF 594918AC8 09/29/2015 4.200000 1,400,000.00 1,524,390.00 4,900.00 0.00

07/19/2018 1.927831 1,980,971.30 102.617000 IDC-FIS -463.20

82917 CCCCD CORP HSBC USA 40428HPU0 01/21/2016 2.000000 1,945,000.00 1,951,340.70 15,560.00 3,753.85

12/01/2017 2.061870 1,484,186.40 105.844000 IDC-FIS -12,954.80

08/07/2018 1.946012 1,947,586.85 100.326000 IDC-FIS 0.00

01/16/2018 1.528436 249,997.92 100.468000 IDC-FIS 0.00

82924 KFPD CORP AUST & NZ 05253JAH4 01/29/2016 1.500000 250,000.00 251,170.00 1,718.75 1,307.50

02/01/2019 1.927457 1,980,325.20 102.431000 IDC-FIS 0.00

82719 CCCCD CORP BB&T CAL 05531FAQ6 09/29/2015 2.250000 1,960,000.00 2,007,647.60 18,375.00 27,322.40

82908 CCCCD CORP CITIGROU 172967JE2 01/13/2016 1.850000 1,490,000.00 1,498,209.90 2,833.07 9,416.80

82910 CCCCD CORP BANK OF 060505DP6 01/13/2016 5.750000 1,390,000.00 1,471,231.60 6,660.42 0.00

11/24/2017 1.893961 1,488,793.10 100.551000 IDC-FIS 0.00



Page 33


Contra Costa County

As Of Date: 06/30/2016




07/01/2016 .000000 537,226.12 100.000000 BOOK 0.00

81524 AUHSD MM DREYFUS TA 26202K205 06/27/2013 .000000 537,226.12 537,226.12 0.00 0.00

81525 AUHSD MM DREYFUS TA 26202K205 06/27/2013 .000000 28,092.20 28,092.20 0.00 0.00

07/01/2016 .000000 28,092.20 100.000000 BOOK 0.00

.000000 565,318.32 100.000000 0.00

Subtotal .000000 565,318.32 565,318.32 0.00 0.00

Inv Type: 99 MONEY MARKET ACCOUNTS

82800 CCCSIG CD HSBC BK U 40428AR41 11/18/2015 1.208200 2,175,000.00 2,175,000.00 3,284.79 0.00

11/17/2017 1.208200 2,175,000.00 100.000000 BOOK 0.00

82808 CCCSIG CD SVENSKA H 86958DH54 11/24/2015 1.111300 1,340,000.00 1,340,000.00 1,571.87 0.00

08/24/2017 1.111300 1,340,000.00 100.000000 BOOK 0.00

Subtotal 1.171259 3,515,000.00 3,515,000.00 4,856.66 0.00

1.171259 3,515,000.00 100.000000 0.00

Inv Type: 80 YCD / NCD QTR FLTR

04/06/2017 1.010000 2,150,000.00 99.287000 IDC-FIS -15,329.50

82526 CCCSIG YCD RABOBANK 21684BXH2 04/27/2015 1.070000 2,000,000.00 1,984,973.33 4,161.10 0.00

09/11/2017 1.430018 1,996,780.00 99.839000 BOOK 0.00

82487 CCCSIG YCD CANADIAN 13606JYY9 04/10/2015 1.010000 2,150,000.00 2,134,670.50 5,127.14 0.00

11/06/2017 1.560000 2,450,000.00 100.000000 BOOK 0.00

82118 CCCSIG NCD US BANK 90333VPF1 09/11/2014 1.375000 2,000,000.00 1,996,780.00 8,402.78 0.00

04/21/2017 1.070000 2,000,000.00 99.248667 IDC-FIS -15,026.67

82788 CCCSIG YCD BK NOVA 06417GAS7 11/09/2015 1.560000 2,450,000.00 2,450,000.00 5,839.17 0.00

1.278261 8,596,780.00 99.609579 -30,356.17

Subtotal 1.265482 8,600,000.00 8,566,423.83 23,530.19 0.00

Inv Type: 79 YCD/NCD 30/360

83177 CCCCD CORP JP MORGA 48127HAA7 06/22/2016 2.200000 1,100,000.00 1,118,106.00 4,638.33 1,331.00

83164 CCCCD CORP WELLS FA 94974BGB0 06/09/2016 1.400000 1,990,000.00 1,996,129.20 8,744.95 497.50

10/22/2019 1.726909 1,120,808.33 101.646000 IDC-FIS 0.00

09/08/2017 1.170359 2,002,674.09 100.308000 IDC-FIS 0.00

Subtotal 1.676132 141,512,000.00 142,978,951.45 638,776.40 1,208,079.65

1.452099 142,096,714.65 101.036627 -309,015.25



Page 34


Contra Costa County

As Of Date: 06/30/2016




82001 CD CCCCD BERTA KAMM 121101042 05/24/2014 .600000 3,335.77 3,330.04 42.75 0.00

05/24/2017 .600000 3,335.77 99.828125 IDC-FIS -5.73

.600000 3,335.77 99.828226 -5.73

Subtotal .600000 3,335.77 3,330.04 42.75 0.00

Inv Type: 1000 TD WITH CALC CODE OF CSC-00

Grand Total Count 452 .934068 2,736,721,276.05 2,742,404,653.68 6,406,307.35 7,084,194.37

.904275 2,734,267,561.53 100.207671 -835,662.17



Page 35


Contra Costa County

As Of Date: 06/30/2016




SUPRANATIONAL 35,000.00 34,981.45 35,172.35 100.55 % 219.55 1.07 %

MONEY MARKET ACCOUNTS 565.32 565.32 565.32 100.00 % 0.00 0.00 %

TIME DEPOSIT 3.34 3.34 3.33 99.83 % -0.01 0.60 %

MBS/ABS 6,893.62 6,922.58 6,920.92 99.98 % 0.00 1.27 %

CORPORATE NOTES 141,512.00 142,096.71 142,978.95 100.62 % 899.06 1.45 %

NCD/YCD 750,020.00 750,017.29 750,350.78 100.04 % 333.50 0.80 %

COMMERCIAL PAPER 1,032,625.00 1,028,534.88 1,031,229.38 100.26 % 698.71 0.81 %

MUNICIPALS 1,990.00 2,122.16 2,122.16 100.00 % 0.00 1.55 %

U.S. AGENCIES 740,672.00 741,367.64 745,203.46 100.52 % 3,883.05 1.01 %

U.S. TREASURIES 27,440.00 27,656.20 27,858.00 100.73 % 214.66 1.01 %

Totals(000's) 2,736,721.28 2,734,267.56 2,742,404.65 100.30 % 6,248.53 0.90 %

Assets (000's) Current Par Current Book Market MKT/Book Un Gain/Loss Yield

Asset Allocation

Page 36


Contra Costa County

As Of Date: 06/30/2016




Page 37

SECTION III

APPENDIX

B. INVESTMENT PORTFOLIO DETAIL –

MANAGED BY OUTSIDE CONTRACTED PARTIES

B.1. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF)

CONTRA COSTA COUNTYAS OF JUNE 30, 2016

CALIFORNIA STATE LOCAL STATE CONTROLLER ACCOUNT ESTIMATEDAGENCY INVESTMENT ACCOUNTS ACCOUNT NUMBER BALANCE FAIR VALUE

ACALANES UNION HIGH SCHOOL 75-07-010 950,343.89 950,934.26

ANTIOCH UNIFIED SCHOOL DISTRICT 75-07-005 827,699.21 828,213.39

BRENTWOOD UNION SCHOOL DISTRICT 75-07-013 8,153,052.51 8,158,117.37

BYRON UNION SCHOOL DISTRICT 75-07-017 165,815.73 165,918.74

CANYON ELEMENTARY SCHOOL DISTRICT 75-07-018 192,774.37 192,894.13

CENTRAL CONTRA COSTA SANITARY DISTRICT 70-07-001 32,300,000.00 32,320,065.47

CONTRA COSTA COMMUNITY COLLEGE 75-07-001 616,856.20 617,239.40

CONTRA COSTA COUNTY 99-07-000 65,000,000.00 65,040,379.43

CONTRA COSTA COUNTY OFFICE OF EDUCATION 75-07-007 1,284,314.97 1,285,112.81

CONTRA COSTA COUNTY SCHOOL INSURANCE GROUP 35-07-001 2,235,794.29 2,237,183.21

CROCKETT COMMUNITY SERVICES DISTRICT 16-07-004 2,926,647.59 2,928,465.69

DELTA DIABLO SANITATION DISTRICT 70-07-003 72,721.14 72,766.32

EAST CONTRA COSTA REG FEE & FINANCING AUTH 40-07-006 1,011,146.63 1,011,774.78

KENSINGTON FIRE PROTECTION DISTRICT 17-07-011 1,981,816.16 1,983,047.31

KENSINGTON POLICE PROTECTION & COMMUNITY 16-07-003 1,731,527.65 1,732,603.31 SERVICES DISTRICT

LAFAYETTE SCHOOL DISTRICT 75-07-012 4,974,862.36 4,977,952.85

MARTINEZ UNIFIED SCHOOL DISTRICT 75-07-011 3,827,523.63 3,829,901.37

MORAGA ORINDA FIRE DISTRICT 17-07-003 8,405,095.63 8,410,317.06

MT DIABLO UNIFIED SCHOOL DISTRICT 75-07-008 5,229,942.28 5,233,191.24

MT VIEW SANITARY DISTRICT 70-07-008 10,342,263.42 10,348,688.26

OAKLEY UNION SCHOOL DISTRICT 75-07-009 247,666.79 247,820.65

ORINDA UNION SCHOOL DISTRICT 75-07-015 7,420,556.14 7,425,165.95

PITTSBURG UNIFIED SCHOOL DISTRICT 75-07-002 32,526,769.38 32,546,975.72

RECLAMATION DISTRICT 799 60-07-001 41,411.81 41,437.54

RECLAMATION DISTRICT 800 60-07-003 5,518,463.53 5,521,891.72

REDEVELOPMENT AGENCY 65-07-015 6,997.18 7,001.53

RODEO -HERCULES FIRE PROTECTION DISTRICT 17-07-001 106,033.23 106,099.10

SAN RAMON VALLEY UNIFIED SCHOOL DISTRICT 75-07-004 239,978.26 240,127.34

WALNUT CREEK SCHOOL DISTRICT 75-07-003 0.00 0.00 WEST CONTRA COSTA UNIFIED SCHOOL DISTRICT 75-07-014 8,446,028.57 8,451,275.43

TOTAL 206,784,102.55 206,912,561.38

Page 39

SECTION III

APPENDIX



B.2. ASSET MANAGEMENT FUNDS

a. WELLS CAPITAL MANAGEMENT b. CalTRUST

Wells Capital Management GAAPWC-Contra Costa County (19529)Quarter End (Q2 Y2016)04/01/2016 - 06/30/2016Dated: 07/06/2016Locked Down

Page 40

Risk Summary (WC-Contra Costa County (19529)) 1

Performance Summary Gross of Fees (WC-Contra Costa County (19529)) 4

Performance Summary Net of Fees (WC-Contra Costa County (19529)) 6

GAAP Financials (WC-Contra Costa County (19529)) 8

Income Detail (WC-Contra Costa County (19529)) 9

Balance Sheet Classification (WC-Contra Costa County (19529)) 12

Trading Activity (WC-Contra Costa County (19529)) 16

Transaction Detail (WC-Contra Costa County (19529)) 20

MMF Transaction Detail (WC-Contra Costa County (19529)) 24

Roll Forward (WC-Contra Costa County (19529)) 26

Shock Analysis (WC-Contra Costa County (19529)) 30

Table of ContentsDated: 07/06/2016

Page 41

Asset Class

Issuer Concentration

Issuer Concentration % of Base MarketValue + Accrued

International Bank for Reconstruction & Development 5.865%

Inter-American Development Bank 3.631%

Government of the United States 14.373%

FHLBanks Office of Finance 11.277%

Federal National Mortgage Association Fannie Mae 4.697%

Federal Home Loan Mortgage Corporation 5.066%

Federal Farm Credit Banks Funding Corporation 3.374%

Other 51.715%

--- 100.000%

Security Type Market Sector

Cash and Fixed Income Summary

Risk Metric Value

Cash 1,158.98

MMFund 1,043,363.57

Fixed Income 43,373,575.25

Duration 0.486

Convexity 0.001

WAL 0.672

Years to Final Maturity 0.86

Years to Effective Maturity 0.658

Yield 0.701

Book Yield 0.80

Avg Credit Rating AA+/Aa1/AA+

Balance Sheet

Book Value + Accrued 44,370,545.50

Net Unrealized Gain/Loss 47,552.30

Market Value + Accrued 44,418,097.80

Risk Summary WC-Contra Costa County (19529)04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

1

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Credit Duration Heat Map

Rating 0 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5 - 7 7 - 10 10 - 15 15 - 30

AAA 58.876% 7.756% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

AA 13.216% 4.617% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

A 15.535% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

BBB 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

BB 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

B 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

CCC 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

CC 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

C 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

NA 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000%

Time To Maturity

Credit Rating

Duration


2

Page 43

MMF Asset Allocation CountryCurrency

Base Exposure - Industry Sector Base Exposure - Industry Group Base Exposure - Industry Subgroup


3

Page 44

Gross of Fees (includes trading).

Returns are actual and have not been annualized.

No Tax Adjustment.

Note that data will not exist prior to the performance inception date of: 04/01/2001.

Historical data exists for the options shown below:

Period Period Begin Period End Total Return Index Total Return Excess Total Return

Month to Date 06/01/2016 06/30/2016 0.126% 0.120% 0.006%

Quarter to Date 04/01/2016 06/30/2016 0.261% 0.196% 0.066%

Year to Date 01/01/2016 06/30/2016 0.586% 0.411% 0.175%

Prior Month 05/01/2016 05/31/2016 0.037% 0.009% 0.028%

Prior Quarter 01/01/2016 03/31/2016 0.324% 0.215% 0.109%

Prior Year 01/01/2015 12/31/2015 0.427% 0.221% 0.206%

Trailing Month 06/01/2016 06/30/2016 0.126% 0.120% 0.006%

Trailing Quarter 04/01/2016 06/30/2016 0.261% 0.196% 0.066%

Trailing Year 07/01/2015 06/30/2016 0.716% 0.521% 0.195%

Account Index Index Start Date Index End Date

WC-Contra Costa County ML 6 Month T-Bill 01/01/1980 11/30/2004

WC-Contra Costa County BofA Merrill Lynch 6 Month Treasury Bill Index (G0O2) 12/01/2004 ---

Performance Summary Gross of Fees WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

4

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Reported Index Return is always Total Return.

Begin Date End Date Return Type Fee Options Tax Options

04/01/2001 01/31/2011 Total Return Net of Fees, Gross of Fees Gross Down Method, Gross Up Method, No Tax Adjustment

04/01/2001 01/31/2011 Income Return Gross of Fees No Tax Adjustment

04/01/2001 01/31/2011 Price Return Gross of Fees No Tax Adjustment

04/01/2001 01/31/2011 Book Return Net of Fees, Gross of Fees Gross Down Method, Gross Up Method, No Tax Adjustment

Performance Summary Gross of Fees WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

5

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Net of Fees (includes management and trading).

Returns are actual and have not been annualized.

No Tax Adjustment.

Note that data will not exist prior to the performance inception date of: 04/01/2001.

Historical data exists for the options shown below:

Period Period Begin Period End Total Return Index Total Return Excess Total Return

Month to Date 06/01/2016 06/30/2016 0.116% 0.120% -0.004%

Quarter to Date 04/01/2016 06/30/2016 0.233% 0.196% 0.037%

Year to Date 01/01/2016 06/30/2016 0.529% 0.411% 0.118%

Prior Month 05/01/2016 05/31/2016 0.027% 0.009% 0.018%

Prior Quarter 01/01/2016 03/31/2016 0.296% 0.215% 0.080%

Prior Year 01/01/2015 12/31/2015 0.313% 0.221% 0.092%

Trailing Month 06/01/2016 06/30/2016 0.116% 0.120% -0.004%

Trailing Quarter 04/01/2016 06/30/2016 0.233% 0.196% 0.037%

Trailing Year 07/01/2015 06/30/2016 0.616% 0.521% 0.095%

Account Index Index Start Date Index End Date

WC-Contra Costa County ML 6 Month T-Bill 01/01/1980 11/30/2004

WC-Contra Costa County BofA Merrill Lynch 6 Month Treasury Bill Index (G0O2) 12/01/2004 ---

Performance Summary Net of Fees WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

6

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Reported Index Return is always Total Return.

Begin Date End Date Return Type Fee Options Tax Options

04/01/2001 01/31/2011 Total Return Net of Fees, Gross of Fees Gross Down Method, Gross Up Method, No Tax Adjustment

04/01/2001 01/31/2011 Income Return Gross of Fees No Tax Adjustment

04/01/2001 01/31/2011 Price Return Gross of Fees No Tax Adjustment

04/01/2001 01/31/2011 Book Return Net of Fees, Gross of Fees Gross Down Method, Gross Up Method, No Tax Adjustment

Performance Summary Net of Fees WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

7

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Balance Sheet WC-Contra Costa County

As of: 03/31/2016 06/30/2016

Book Value 44,393,589.63 44,249,611.77Accrued Balance 101,571.42 120,933.73

Book Value + Accrued 44,495,161.05 44,370,545.50Net Unrealized Gain/Loss 17,817.64 47,552.30

Market Value + Accrued 44,512,978.68 44,418,097.80

Income Statement WC-Contra Costa County

Begin DateEnd Date

04/01/201606/30/2016

Net Amortization/Accretion Income -41,720.48Interest Income 127,914.49Dividend Income 0.00Misc Income 0.00

Income Subtotal 127,914.49Net Realized Gain/Loss -0.01Impairment Loss 0.00

Net Gain/Loss -0.01Expense -12,593.01

Net Income 73,600.99

Transfers In/Out -198,216.54Change in Unrealized Gain/Loss 29,734.66

Statement of Cash Flows WC-Contra Costa County

Begin DateEnd Date

04/01/201606/30/2016

Net Income 73,600.99Amortization/Accretion on MS 42,072.98Change in Accrued on MS -15,517.05Net Gain/Loss on MS 0.01Change in Unrealized G/L on CE -27.84

Subtotal 26,528.10Purchases of MS -7,747,873.32Purchased Accrued of MS -3,845.26Sales of MS 964,474.89Sold Accrued of MS 0.00Maturities of MS 5,750,000.00

Net Purchases/Sales -1,037,243.69Transfers of Cash & CE -198,216.54Total Change in Cash & CE -1,135,331.14Beginning Cash & CE 2,179,853.69Ending Cash & CE 1,044,522.55

GAAP Financials WC-Contra Costa County (19529)04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

8

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Identifier Base Current Units Description Coupon Final Maturity EffectiveMaturity

Transfers In/Out Net RealizedGain/Loss

Net Amortization/Accretion Income

Interest/DividendIncome

BaseExpense

Base Net Income Settle Date

02665WAY7 500,000.00 AMERICAN HONDA FINANCE CORP 1.097 09/20/2017 09/20/2017 0.00 0.00 0.00 1,345.30 0.00 1,345.30 09/24/2015

02665WAY7 250,000.00 AMERICAN HONDA FINANCE CORP 1.097 09/20/2017 09/20/2017 0.00 0.00 -8.48 672.65 0.00 664.17 01/12/2016

03255LGX1 0.00 ANAHEIM CALIF PUB FING AUTH LEASEREV

1.00 05/01/2016 05/01/2016 0.00 0.00 0.00 625.00 0.00 625.00 11/14/2014

037833AM2 500,000.00 APPLE INC 1.05 05/05/2017 05/05/2017 0.00 0.00 -3.96 14.58 0.00 10.62 06/30/2016

06050TMB5 0.00 BANK OF AMERICA NA 1.13 06/05/2017 06/05/2017 0.00 0.00 0.00 490.03 0.00 490.03 06/05/2015

06050TMB5 250,000.00 BANK OF AMERICA NA 1.13 06/05/2017 06/05/2017 0.00 0.00 0.00 203.74 0.00 203.74 06/05/2015

06050TLU4 500,000.00 BANK OF AMERICA NA 1.096 02/14/2017 02/14/2017 0.00 0.00 0.00 1,380.41 0.00 1,380.41 02/14/2014

06406HBX6 750,000.00 BANK OF NEW YORK MELLON CORP 2.30 07/28/2016 07/28/2016 0.00 0.00 -3,079.87 4,312.50 0.00 1,232.63 01/21/2015

084664CD1 750,000.00 BERKSHIRE HATHAWAY FINANCE CORP 0.931 01/12/2018 01/12/2018 0.00 0.00 0.00 1,762.42 0.00 1,762.42 01/15/2015

09247XAC5 500,000.00 BLACKROCK INC 6.25 09/15/2017 09/15/2017 0.00 0.00 -6,161.03 7,812.50 0.00 1,651.47 02/16/2016

05581RAC0 600,000.00 BMWLT 161 A2B 0.948 01/22/2018 04/26/2017 0.00 0.00 0.00 1,423.22 0.00 1,423.22 02/17/2016

097023BC8 750,000.00 BOEING CO 3.75 11/20/2016 11/20/2016 0.00 0.00 -5,363.38 7,031.25 0.00 1,667.87 01/26/2015

07330NAH8 0.00 BRANCH BANKING AND TRUST CO 1.00 04/03/2017 03/03/2017 0.00 0.00 11.41 38.89 0.00 50.30 02/23/2016

07330NAH8 700,000.00 BRANCH BANKING AND TRUST CO 1.00 04/03/2017 03/03/2017 0.00 0.00 507.63 1,711.11 0.00 2,218.74 02/23/2016

13034PYA9 500,000.00 CALIFORNIA HSG FIN AGY REV 1.00 02/01/2017 02/01/2017 0.00 0.00 0.00 13.89 0.00 13.89 06/30/2016

CCYUSD 804.18 Cash 0.00 06/30/2016 06/30/2016 -198,216.54 0.00 0.00 0.00 -12,593.01 -12,593.01 ---

14912L4X6 775,000.00 CATERPILLAR FINANCIAL SERVICESCORP

2.05 08/01/2016 08/01/2016 0.00 0.00 -2,697.91 3,971.88 0.00 1,273.96 11/04/2014

17305EFE0 750,000.00 CCCIT 13A6 A6 1.32 09/07/2018 09/07/2016 0.00 0.00 -686.19 2,475.00 0.00 1,788.81 01/14/2016

161571GJ7 775,000.00 CHAIT 141 A 1.15 01/15/2019 01/13/2017 0.00 0.00 -249.97 2,228.13 0.00 1,978.16 08/07/2015

166764AL4 700,000.00 CHEVRON CORP 1.345 11/15/2017 11/15/2017 0.00 0.00 276.75 2,353.75 0.00 2,630.50 01/29/2016

17275RAY8 750,000.00 CISCO SYSTEMS INC 0.963 06/15/2018 06/15/2018 0.00 0.00 0.00 1,795.60 0.00 1,795.60 06/17/2015

191216BR0 300,000.00 COCA-COLA CO 0.875 10/27/2017 10/27/2017 0.00 0.00 16.43 656.25 0.00 672.68 10/27/2015

30231GAS1 560,000.00 EXXON MOBIL CORP 1.274 02/28/2018 02/28/2018 0.00 0.00 0.00 1,763.87 0.00 1,763.87 03/03/2016

313313HF8 500,000.00 FEDERAL FARM CREDIT BANKS 0.00 06/23/2017 06/23/2017 0.00 0.00 56.39 0.00 0.00 56.39 06/24/2016

3133EFBT3 1,000,000.00 FEDERAL FARM CREDIT BANKS FUNDINGCORP

0.42 09/01/2016 09/01/2016 0.00 0.00 49.73 1,050.00 0.00 1,099.73 09/01/2015

3130A5EP0 1,000,000.00 FEDERAL HOME LOAN BANKS 0.625 05/30/2017 05/30/2017 0.00 0.00 112.15 503.47 0.00 615.63 06/02/2016

3130A3J70 1,000,000.00 FEDERAL HOME LOAN BANKS 0.625 11/23/2016 11/23/2016 0.00 0.00 -349.24 1,562.50 0.00 1,213.26 05/18/2015

313379FW4 0.00 FEDERAL HOME LOAN BANKS 1.00 06/09/2017 06/09/2017 0.00 0.00 -485.38 1,888.89 0.00 1,403.51 03/31/2016

313379FW4 1,000,000.00 FEDERAL HOME LOAN BANKS 1.00 06/09/2017 06/09/2017 0.00 0.00 -154.76 611.11 0.00 456.35 03/31/2016

313373SZ6 0.00 FEDERAL HOME LOAN BANKS 2.125 06/10/2016 06/10/2016 0.00 0.00 -3,090.88 4,072.92 0.00 982.04 07/16/2014

3130A4KE1 0.00 FEDERAL HOME LOAN BANKS 0.33 04/01/2016 04/01/2016 0.00 0.00 0.00 0.00 0.00 0.00 04/01/2015

313384ZK8 500,000.00 FEDERAL HOME LOAN BANKS 0.00 07/15/2016 07/15/2016 0.00 0.00 770.97 0.00 0.00 770.97 12/23/2015

3130A2T97 500,000.00 FEDERAL HOME LOAN BANKS 0.50 09/28/2016 09/28/2016 0.00 0.00 -103.75 625.00 0.00 521.25 09/30/2015

3130A2T97 1,000,000.00 FEDERAL HOME LOAN BANKS 0.50 09/28/2016 09/28/2016 0.00 0.00 -281.60 1,250.00 0.00 968.40 10/15/2015

3135G0JA2 0.00 FEDERAL NATIONAL MORTGAGEASSOCIATION

1.125 04/27/2017 04/27/2017 0.00 0.00 -216.77 812.50 0.00 595.73 03/14/2016

3135G0JA2 1,000,000.00 FEDERAL NATIONAL MORTGAGEASSOCIATION

1.125 04/27/2017 04/27/2017 0.00 0.00 -541.93 2,000.00 0.00 1,458.07 03/14/2016

3135G0PP2 1,072,000.00 FEDERAL NATIONAL MORTGAGEASSOCIATION

1.00 09/20/2017 09/20/2017 0.00 0.00 -523.75 2,114.23 0.00 1,590.48 04/20/2016

31680GAB2 465,222.74 FITAT 151 A2A 1.02 05/15/2018 11/08/2016 0.00 0.00 2.58 1,259.23 0.00 1,261.82 11/05/2015

354613AH4 500,000.00 FRANKLIN RESOURCES INC 1.375 09/15/2017 09/15/2017 0.00 0.00 -236.27 1,241.32 0.00 1,005.04 04/26/2016

3137EACW7 235,000.00 FREDDIE MAC 2.00 08/25/2016 08/25/2016 0.00 0.00 -681.96 1,175.00 0.00 493.04 12/15/2015

3137EADT3 1,000,000.00 FREDDIE MAC 0.875 02/22/2017 02/22/2017 0.00 0.00 -395.77 2,187.50 0.00 1,791.73 03/21/2016

3137EADF3 1,000,000.00 FREDDIE MAC 1.25 05/12/2017 05/12/2017 0.00 0.00 -588.51 1,701.39 0.00 1,112.88 03/03/2016

3137EADF3 0.00 FREDDIE MAC 1.25 05/12/2017 05/12/2017 0.00 0.00 -482.57 1,423.61 0.00 941.04 03/03/2016

43814KAB7 0.00 HAROT 151 A2 0.70 06/15/2017 08/01/2016 0.00 -0.00 1.46 174.30 0.00 175.76 01/28/2015

43814KAB7 67,740.83 HAROT 151 A2 0.70 06/15/2017 08/01/2016 0.00 0.00 0.10 21.07 0.00 21.17 01/28/2015

4197915E4 750,000.00 HAWAII ST 0.731 08/01/2016 08/01/2016 0.00 0.00 0.00 1,370.63 0.00 1,370.63 11/25/2014

Income Detail WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

9

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BaseExpense


41284AAB4 0.00 HDMOT 141 A2A 0.49 04/15/2018 06/15/2016 0.00 -0.01 0.19 13.93 0.00 14.12 04/16/2014

41284BAB2 171,064.20 HDMOT 151 A2A 0.80 01/15/2019 10/28/2016 0.00 0.00 0.40 415.38 0.00 415.78 01/28/2015

41284DAB8 500,000.00 HDMOT 16A A2 1.09 06/17/2019 07/14/2017 0.00 0.00 0.55 242.22 0.00 242.77 06/15/2016

437076BJ0 750,000.00 HOME DEPOT INC 1.022 09/15/2017 09/15/2017 0.00 0.00 0.00 1,909.35 0.00 1,909.35 09/15/2015

4581X0BV9 1,000,000.00 INTER-AMERICAN DEVELOPMENT BANK 1.125 03/15/2017 03/15/2017 0.00 0.00 -733.32 2,812.50 0.00 2,079.18 03/04/2016

4581X0BV9 600,000.00 INTER-AMERICAN DEVELOPMENT BANK 1.125 03/15/2017 03/15/2017 0.00 0.00 -504.84 1,687.50 0.00 1,182.66 02/11/2016

459058DM2 0.00 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

0.50 05/16/2016 05/16/2016 0.00 0.00 10.02 468.75 0.00 478.77 02/05/2016

459058DM2 0.00 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

0.50 05/16/2016 05/16/2016 0.00 0.00 8.18 625.00 0.00 633.18 12/03/2015

45905UQG2 600,000.00 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

0.625 09/26/2016 09/26/2016 0.00 0.00 98.67 940.50 0.00 1,039.17 01/21/2016

45905UTJ3 500,000.00 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

0.631 09/30/2017 09/30/2017 0.00 0.00 10.54 401.64 0.00 412.17 05/16/2016

45905U7F5 1,000,000.00 INTERNATIONAL BK FOR RECON & DEVMEDIUM TERM BK N

0.45 07/19/2016 07/19/2016 0.00 0.00 0.00 1,125.00 0.00 1,125.00 06/26/2015

45950KBS8 500,000.00 INTERNATIONAL FINANCE CORP 1.00 04/24/2017 04/24/2017 0.00 0.00 -76.79 513.89 0.00 437.09 05/24/2016

47787WAB5 349,054.87 JDOT 15B A2 0.98 06/15/2018 11/30/2016 0.00 -0.00 2.96 942.24 0.00 945.20 09/09/2015

46623EJY6 500,000.00 JPMORGAN CHASE & CO 1.35 02/15/2017 02/15/2017 0.00 0.00 -116.40 1,687.50 0.00 1,571.10 01/25/2016

544587B72 490,000.00 LOS ANGELES CALIF MUN IMPT CORPLEASE REV

1.26 11/01/2016 11/01/2016 0.00 0.00 0.00 1,543.50 0.00 1,543.50 11/19/2015

58772PAB4 447,840.95 MBART 151 A2A 0.82 06/15/2018 11/19/2016 0.00 0.00 267.46 1,070.32 0.00 1,337.78 12/08/2015

605581FW2 300,000.00 MISSISSIPPI ST 0.64 10/01/2016 10/01/2016 0.00 0.00 0.00 480.00 0.00 480.00 02/18/2015

65477WAB2 0.00 NAROT 14B A2 0.60 06/15/2017 06/15/2016 0.00 -0.01 1.41 132.56 0.00 133.97 12/10/2014

65477WAB2 0.00 NAROT 14B A2 0.60 06/15/2017 06/15/2016 0.00 0.00 0.00 0.00 0.00 0.01 12/10/2014

65478VAB3 700,000.00 NAROT 16B A2A 1.05 04/15/2019 06/23/2017 0.00 0.00 5.03 1,306.67 0.00 1,311.69 04/27/2016

637432HT5 0.00 NATIONAL RURAL UTILITIES COOPFINANCE CORP

5.45 04/10/2017 04/10/2017 0.00 0.00 -534.31 681.25 0.00 146.94 02/08/2016

637432HT5 500,000.00 NATIONAL RURAL UTILITIES COOPFINANCE CORP

5.45 04/10/2017 04/10/2017 0.00 0.00 -4,868.15 6,131.25 0.00 1,263.10 02/08/2016

68428LDH4 0.00 ORANGE CNTY CALIF PENSION OBLIG 0.68 02/01/2016 02/01/2016 0.00 0.00 0.00 0.00 0.00 0.00 01/13/2015

68428LDH4 0.00 ORANGE CNTY CALIF PENSION OBLIG 0.68 02/01/2016 02/01/2016 0.00 0.00 0.00 -0.00 0.00 -0.00 02/27/2015

68428LDM3 250,000.00 ORANGE CNTY CALIF PENSION OBLIG 0.938 11/01/2016 11/01/2016 0.00 0.00 0.00 586.25 0.00 586.25 01/13/2016

69353RCG1 750,000.00 PNC BANK NA 1.125 01/27/2017 12/28/2016 0.00 0.00 0.00 2,109.38 0.00 2,109.38 02/02/2016

CCYUSD 354.80 Receivable 0.00 06/30/2016 06/30/2016 0.00 0.00 0.00 0.00 0.00 0.00 ---

762494QV7 250,000.00 RIALTO CALIF UNI SCH DIST 1.258 02/01/2017 02/01/2017 0.00 0.00 0.00 786.25 0.00 786.25 03/26/2015

76912TJC8 125,000.00 RIVERSIDE CNTY CALIF PUB FING AUTHTAX ALLOC REV

1.00 09/01/2016 09/01/2016 0.00 0.00 92.08 312.50 0.00 404.58 03/26/2015

89236WAB4 161,050.47 TAOT 15A A2 0.71 07/17/2017 08/12/2016 0.00 -0.00 0.71 423.81 0.00 424.52 03/04/2015

880591EA6 586,000.00 TENNESSEE VALLEY AUTHORITY 5.50 07/18/2017 07/18/2017 0.00 0.00 -6,694.88 8,057.50 0.00 1,362.62 03/29/2016

89116EPA5 750,000.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 02/10/2017 02/10/2017 0.00 0.00 935.00 0.00 0.00 935.00 05/18/2016

89233GEJ1 0.00 Toyota Motor Credit Corporation 0.00 05/18/2016 05/18/2016 0.00 0.00 352.50 0.00 0.00 352.50 02/22/2016

89233GKT2 500,000.00 Toyota Motor Credit Corporation 0.00 10/27/2016 10/27/2016 0.00 0.00 453.89 0.00 0.00 453.89 05/19/2016

912828WQ9 0.00 UNITED STATES TREASURY 0.50 06/30/2016 06/30/2016 0.00 0.00 -101.13 1,236.26 0.00 1,135.13 07/01/2014

912828SY7 500,000.00 UNITED STATES TREASURY 0.625 05/31/2017 05/31/2017 0.00 0.00 44.38 264.69 0.00 309.07 11/05/2015

912828SY7 0.00 UNITED STATES TREASURY 0.625 05/31/2017 05/31/2017 0.00 0.00 85.90 512.30 0.00 598.19 11/05/2015

912828VL1 1,000,000.00 UNITED STATES TREASURY 0.625 07/15/2016 07/15/2016 0.00 0.00 -667.59 1,562.50 0.00 894.91 06/01/2015

912828RF9 1,000,000.00 UNITED STATES TREASURY 1.00 08/31/2016 08/31/2016 0.00 0.00 -1,405.96 2,472.83 0.00 1,066.87 10/31/2014

912828RF9 1,000,000.00 UNITED STATES TREASURY 1.00 08/31/2016 08/31/2016 0.00 0.00 -1,041.02 2,472.83 0.00 1,431.81 11/25/2015

912828TS9 1,000,000.00 UNITED STATES TREASURY 0.625 09/30/2017 09/30/2017 0.00 0.00 15.13 1,553.96 0.00 1,569.09 10/26/2015

912828D49 230,000.00 UNITED STATES TREASURY 0.875 08/15/2017 08/15/2017 0.00 0.00 -28.14 237.74 0.00 209.60 05/19/2016

912828QX1 1,000,000.00 UNITED STATES TREASURY 1.50 07/31/2016 07/31/2016 0.00 0.00 -2,644.96 3,750.00 0.00 1,105.04 11/06/2014

91412GEZ4 300,000.00 UNIVERSITY CALIF REVS 0.956 07/01/2017 01/01/2017 0.00 0.00 0.00 715.03 0.00 715.03 01/29/2016


10

Page 51

* Weighted By: Ending Base Market Value + Accrued. * Holdings Displayed By: Lot.





BaseExpense


91412GUT0 0.00 UNIVERSITY CALIF REVS 0.634 05/15/2016 05/15/2016 0.00 0.00 0.00 193.72 0.00 193.72 04/10/2014

90331HMR1 450,000.00 US BANK NA 0.936 01/26/2018 01/26/2018 0.00 0.00 -114.44 1,059.29 0.00 944.86 05/12/2015

90331HMR1 300,000.00 US BANK NA 0.936 01/26/2018 01/26/2018 0.00 0.00 0.00 706.20 0.00 706.20 01/27/2015

90290XAB3 298,840.31 USAOT 151 A2 0.82 03/15/2018 10/03/2016 0.00 0.00 4.81 778.54 0.00 783.35 07/29/2015

928668AD4 0.00 VOLKSWAGEN GROUP OF AMERICAFINANCE LLC

0.838 05/23/2016 05/23/2016 0.00 0.00 0.00 607.62 0.00 607.62 05/23/2014

949917397 1,043,363.57 WellsFargo:Htge MM;I 0.36 06/30/2016 06/30/2016 0.00 0.00 0.00 1,257.73 0.00 1,257.73 ---

--- 44,153,336.92 --- --- 05/10/2017 02/25/2017 -198,216.54 -0.01 -41,720.48 127,914.49 -12,593.01 73,600.99 ---


11

Page 52

CE

ST

Identifier Description Base Current Units Market Sector Rating Coupon FinalMaturity,EffectiveMaturity

BookYield,Yield

Base Original Cost,Base Book Value

Base Net TotalUnrealized Gain/

Loss

MarketPrice

Base AccruedBalance

Base Market Value Base Market Value +Accrued

949917397 WellsFargo:Htge MM;I 1,043,363.57 Cash AAA 0.36 06/30/201606/30/2016

0.000.00

1,043,363.571,043,363.57

0.00 1.00 0.00 1,043,363.57 1,043,363.57

CCYUSD Receivable 354.80 Cash AAA 0.00 06/30/201606/30/2016

0.000.00

354.80354.80

0.00 1.00 0.00 354.80 354.80

CCYUSD Cash 804.18 Cash AAA 0.00 06/30/201606/30/2016

0.000.00

804.18804.18

0.00 1.00 0.00 804.18 804.18

--- --- 1,044,522.55 Cash AAA --- 06/30/201606/30/2016

0.000.00

1,044,522.551,044,522.55

0.00 1.00 0.00 1,044,522.55 1,044,522.55


BookYield,Yield



Loss

MarketPrice

Base AccruedBalance


13034PYA9 CALIFORNIA HSG FIN AGY REV 500,000.00 Municipal AA- 1.00 02/01/201702/01/2017

1.000.993

500,000.00500,000.00

125.00 100.025 13.89 500,125.00 500,138.89

605581FW2 MISSISSIPPI ST 300,000.00 Municipal AA+ 0.64 10/01/201610/01/2016

0.640.342

300,000.00300,000.00

258.00 100.086 480.00 300,258.00 300,738.00

46623EJY6 JPMORGAN CHASE & CO 500,000.00 Financial A+ 1.35 02/15/201702/15/2017

1.2551.023

500,495.00500,292.91

723.09 100.203 2,550.00 501,016.00 503,566.00

45905U7F5 INTERNATIONAL BK FOR RECON & DEVMEDIUM TERM BK N

1,000,000.00 Government AAA 0.45 07/19/201607/19/2016

0.450.638

1,000,000.001,000,000.00

-100.00 99.99 2,025.00 999,900.00 1,001,925.00

06050TLU4 BANK OF AMERICA NA 500,000.00 Financial A+ 1.096 02/14/201702/14/2017

1.121.302

500,000.00500,000.00

695.50 100.139 700.29 500,695.50 501,395.79

06406HBX6 BANK OF NEW YORK MELLON CORP 750,000.00 Financial AA- 2.30 07/28/201607/28/2016

0.6441.02

768,750.00750,913.81

-173.56 100.099 7,331.25 750,740.25 758,071.50

89116EPA5 Toronto Dominion Holdings (U.S.A.), Inc. 750,000.00 Financial A-1+ 0.00 02/10/201702/10/2017

1.0270.957

744,305.00745,240.00

400.63 99.419 0.00 745,640.63 745,640.63

313384ZK8 FEDERAL HOME LOAN BANKS 500,000.00 Agency A-1+ 0.00 07/15/201607/15/2016

0.6220.158

498,263.19499,881.39

85.61 99.993 0.00 499,967.00 499,967.00

3137EADF3 FREDDIE MAC 1,000,000.00 Agency AAA 1.25 05/12/201705/12/2017

0.8170.584

1,005,120.001,003,707.59

2,043.41 100.575 1,701.39 1,005,751.00 1,007,452.39

3137EADT3 FREDDIE MAC 1,000,000.00 Agency AAA 0.875 02/22/201702/22/2017

0.7140.503

1,001,470.001,001,026.39

1,362.61 100.239 3,135.42 1,002,389.00 1,005,524.42

637432HT5 NATIONAL RURAL UTILITIES COOPFINANCE CORP

500,000.00 Financial A+ 5.45 04/10/201704/10/2017

1.0841.158

525,350.00516,801.05

-242.55 103.312 6,131.25 516,558.50 522,689.75

3133EFBT3 FEDERAL FARM CREDIT BANKSFUNDING CORP

1,000,000.00 Agency AAA 0.42 09/01/201609/01/2016

0.440.404

999,800.00999,966.12

59.88 100.003 1,400.00 1,000,026.00 1,001,426.00

43814KAB7 HAROT 151 A2 67,740.83 Asset Backed AAA 0.70 06/15/201708/01/2016

0.7080.818

67,737.2967,740.38

-7.02 99.989 21.07 67,733.36 67,754.43

762494QV7 RIALTO CALIF UNI SCH DIST 250,000.00 Municipal AA 1.258 02/01/201702/01/2017

1.2580.756

250,000.00250,000.00

790.00 100.316 1,310.42 250,790.00 252,100.42

037833AM2 APPLE INC 500,000.00 Industrial AA+ 1.05 05/05/201705/05/2017

0.7590.77

501,225.00501,221.04

-43.04 100.236 802.08 501,178.00 501,980.08

313379FW4 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 1.00 06/09/201706/09/2017

0.7410.584

1,003,060.001,002,412.83

1,492.17 100.391 611.11 1,003,905.00 1,004,516.11

06050TMB5 BANK OF AMERICA NA 250,000.00 Financial A+ 1.13 06/05/201706/05/2017

1.1451.584

250,000.00250,000.00

259.00 100.104 196.20 250,259.00 250,455.20

912828QX1 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.50 07/31/201607/31/2016

0.4340.231

1,018,398.441,000,871.96

207.04 100.108 6,263.74 1,001,079.00 1,007,342.74

4197915E4 HAWAII ST 750,000.00 Municipal AA 0.731 08/01/201608/01/2016

0.7310.28

750,000.00750,000.00

217.50 100.029 2,284.38 750,217.50 752,501.88

912828SY7 UNITED STATES TREASURY 500,000.00 Government AAA 0.625 05/31/201705/31/2017

0.730.527

499,179.69499,521.84

927.16 100.09 264.69 500,449.00 500,713.69

Balance Sheet Classification WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

12

Page 53

LT


BookYield,Yield



Loss

MarketPrice

Base AccruedBalance


69353RCG1 PNC BANK NA 750,000.00 Financial A+ 1.125 01/27/201712/28/2016

1.1250.95

750,000.00750,000.00

642.00 100.086 3,609.38 750,642.00 754,251.38

313313HF8 FEDERAL FARM CREDIT BANKS 500,000.00 Agency A-1+ 0.00 06/23/201706/23/2017

0.5830.559

497,067.78497,124.17

148.83 99.455 0.00 497,273.00 497,273.00

3135G0JA2 FEDERAL NATIONAL MORTGAGEASSOCIATION

1,000,000.00 Agency AAA 1.125 04/27/201704/27/2017

0.8180.586

1,003,410.001,002,501.22

1,926.78 100.443 2,000.00 1,004,428.00 1,006,428.00

3130A3J70 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 0.625 11/23/201611/23/2016

0.4840.489

1,002,130.001,000,556.49

-19.49 100.054 659.72 1,000,537.00 1,001,196.72

097023BC8 BOEING CO 750,000.00 Industrial A 3.75 11/20/201611/20/2016

0.8490.862

789,135.00758,369.23

-2.23 101.116 3,203.13 758,367.00 761,570.13

45905UQG2 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

600,000.00 Government AAA 0.625 09/26/201609/26/2016

0.6910.431

599,730.00599,905.66

370.34 100.046 989.58 600,276.00 601,265.58

3130A5EP0 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 0.625 05/30/201705/30/2017

0.7670.574

998,600.00998,712.15

1,749.85 100.046 538.19 1,000,462.00 1,001,000.19

912828VL1 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.625 07/15/201607/15/2016

0.3560.219

1,003,007.811,000,102.71

64.29 100.017 2,884.62 1,000,167.00 1,003,051.62

4581X0BV9 INTER-AMERICAN DEVELOPMENTBANK

1,000,000.00 Government AAA 1.125 03/15/201703/15/2017

0.8290.44

1,003,030.001,002,071.04

2,764.96 100.484 3,312.50 1,004,836.00 1,008,148.50


600,000.00 Government AAA 1.125 03/15/201703/15/2017

0.7860.44

602,208.00601,425.77

1,475.83 100.484 1,987.50 602,901.60 604,889.10

3137EACW7 FREDDIE MAC 235,000.00 Agency AAA 2.00 08/25/201608/25/2016

0.8270.465

236,903.50235,412.18

137.49 100.234 1,645.00 235,549.67 237,194.67

45950KBS8 INTERNATIONAL FINANCE CORP 500,000.00 Government AAA 1.00 04/24/201704/24/2017

0.8510.677

500,677.00500,600.21

710.79 100.262 930.56 501,311.00 502,241.56

3130A2T97 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 0.50 09/28/201609/28/2016

0.3860.342

1,001,080.001,000,275.42

110.58 100.039 1,291.67 1,000,386.00 1,001,677.67

3130A2T97 FEDERAL HOME LOAN BANKS 500,000.00 Agency AAA 0.50 09/28/201609/28/2016

0.4160.342

500,415.00500,101.47

91.53 100.039 645.83 500,193.00 500,838.83

89233GKT2 Toyota Motor Credit Corporation 500,000.00 Industrial A-1+ 0.00 10/27/201610/27/2016

0.7630.714

498,300.56498,754.45

88.61 99.769 0.00 498,843.05 498,843.05

14912L4X6 CATERPILLAR FINANCIAL SERVICESCORP

775,000.00 Industrial A 2.05 08/01/201608/01/2016

0.6430.915

793,855.75775,919.07

-167.32 100.097 6,619.79 775,751.75 782,371.54

76912TJC8 RIVERSIDE CNTY CALIF PUB FINGAUTH TAX ALLOC REV

125,000.00 Municipal A 1.00 09/01/201609/01/2016

1.3011.173

124,468.75124,937.26

18.99 99.965 416.67 124,956.25 125,372.92

544587B72 LOS ANGELES CALIF MUN IMPT CORPLEASE REV

490,000.00 Municipal A+ 1.26 11/01/201611/01/2016

1.260.712

490,000.00490,000.00

965.30 100.197 1,029.00 490,965.30 491,994.30

07330NAH8 BRANCH BANKING AND TRUST CO 700,000.00 Financial A+ 1.00 04/03/201703/03/2017

1.300.97

697,690.00698,425.78

1,716.32 100.02 1,711.11 700,142.10 701,853.21

912828RF9 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.00 08/31/201608/31/2016

0.5790.311

1,003,203.131,000,697.82

460.18 100.116 3,342.39 1,001,158.00 1,004,500.39

912828RF9 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.00 08/31/201608/31/2016

0.4320.311

1,010,351.561,000,942.46

215.54 100.116 3,342.39 1,001,158.00 1,004,500.39

68428LDM3 ORANGE CNTY CALIF PENSION OBLIG 250,000.00 Municipal AA 0.938 11/01/201611/01/2016

0.9380.692

250,000.00250,000.00

240.00 100.096 1,094.33 250,240.00 251,334.33

--- --- 27,892,740.83 --- AA+ --- 12/17/201612/14/2016

0.7340.603

28,038,417.4527,926,431.85

22,789.61 --- 78,475.52 27,949,221.45 28,027,696.97


BookYield,Yield



Loss

MarketPrice

Base AccruedBalance


65478VAB3 NAROT 16B A2A 700,000.00 Asset Backed AAA 1.05 04/15/201906/23/2017

1.0570.877

699,946.87699,951.90

1,247.20 100.171 326.67 701,199.10 701,525.77

58772PAB4 MBART 151 A2A 447,840.95 Asset Backed AAA 0.82 06/15/201811/19/2016

1.0310.819

447,211.18447,458.76

386.00 100.001 163.21 447,844.76 448,007.97


13

Page 54


BookYield,Yield



Loss

MarketPrice

Base AccruedBalance


91412GEZ4 UNIVERSITY CALIF REVS 300,000.00 Municipal AA 0.956 07/01/201701/01/2017

0.9690.56

300,000.00300,000.00

45.00 100.015 239.00 300,045.00 300,284.00

90331HMR1 US BANK NA 450,000.00 Financial AA 0.936 01/26/201801/26/2018

0.8481.329

451,206.00450,682.86

-1,521.66 99.814 772.08 449,161.20 449,933.28

90331HMR1 US BANK NA 300,000.00 Financial AA 0.936 01/26/201801/26/2018

0.9511.329

300,000.00300,000.00

-559.20 99.814 514.72 299,440.80 299,955.52

30231GAS1 EXXON MOBIL CORP 560,000.00 Utility AAA 1.274 02/28/201802/28/2018

1.291.026

560,000.00560,000.00

4,166.40 100.744 614.38 564,166.40 564,780.78

89236WAB4 TAOT 15A A2 161,050.47 Asset Backed AAA 0.71 07/17/201708/12/2016

0.7120.828

161,048.94161,050.26

-21.53 99.987 50.82 161,028.73 161,079.55

17275RAY8 CISCO SYSTEMS INC 750,000.00 Industrial AA- 0.963 06/15/201806/15/2018

0.9760.996

750,000.00750,000.00

1,116.00 100.149 320.83 751,116.00 751,436.83

084664CD1 BERKSHIRE HATHAWAY FINANCECORP

750,000.00 Financial AA 0.931 01/12/201801/12/2018

0.9461.204

750,000.00750,000.00

254.25 100.034 1,551.33 750,254.25 751,805.58

3135G0PP2 FEDERAL NATIONAL MORTGAGEASSOCIATION

1,072,000.00 Agency AAA 1.00 09/20/201709/20/2017

0.750.612

1,075,768.081,075,244.33

1,809.08 100.471 3,007.56 1,077,053.41 1,080,060.96

41284BAB2 HDMOT 151 A2A 171,064.20 Asset Backed AAA 0.80 01/15/201910/28/2016

0.7990.994

171,062.81171,063.70

-106.56 99.937 60.82 170,957.15 171,017.97

880591EA6 TENNESSEE VALLEY AUTHORITY 586,000.00 Agency AAA 5.50 07/18/201707/18/2017

0.8760.663

621,019.36614,103.77

1,505.05 105.053 14,593.03 615,608.82 630,201.85

161571GJ7 CHAIT 141 A 775,000.00 Asset Backed AAA 1.15 01/15/201901/13/2017

1.010.781

776,453.13775,549.39

1,002.55 100.20 396.11 776,551.94 776,948.05

45905UTJ3 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

500,000.00 Government AAA 0.631 09/30/201709/30/2017

0.6581.13

499,885.00499,895.54

-215.04 99.936 8.77 499,680.50 499,689.27

912828D49 UNITED STATES TREASURY 230,000.00 Government AAA 0.875 08/15/201708/15/2017

0.770.544

230,296.48230,268.34

585.19 100.371 757.45 230,853.53 231,610.98

912828TS9 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.625 09/30/201709/30/2017

0.6310.55

999,882.81999,924.20

1,013.80 100.094 1,571.04 1,000,938.00 1,002,509.04

09247XAC5 BLACKROCK INC 500,000.00 Financial AA- 6.25 09/15/201709/15/2017

1.2420.956

539,065.00529,857.31

1,861.19 106.344 9,201.39 531,718.50 540,919.89

166764AL4 CHEVRON CORP 700,000.00 Utility AA 1.345 11/15/201711/15/2017

1.5060.962

698,005.00698,473.34

5,180.66 100.522 1,203.03 703,654.00 704,857.03

31680GAB2 FITAT 151 A2A 465,222.74 Asset Backed AAA 1.02 05/15/201811/08/2016

1.0220.92

465,210.04465,215.49

174.78 100.036 210.90 465,390.27 465,601.17

47787WAB5 JDOT 15B A2 349,054.87 Asset Backed AAA 0.98 06/15/201811/30/2016

0.9820.942

349,043.10349,049.06

64.62 100.017 152.03 349,113.68 349,265.71

90290XAB3 USAOT 151 A2 298,840.31 Asset Backed AAA 0.82 03/15/201810/03/2016

0.8221.019

298,829.19298,836.20

-148.06 99.949 108.91 298,688.14 298,797.05

02665WAY7 AMERICAN HONDA FINANCE CORP 500,000.00 Industrial A+ 1.097 09/20/201709/20/2017

1.1131.412

500,000.00500,000.00

902.50 100.18 167.54 500,902.50 501,070.04

02665WAY7 AMERICAN HONDA FINANCE CORP 250,000.00 Industrial A+ 1.097 09/20/201709/20/2017

1.101.412

250,057.50250,041.56

409.69 100.18 83.77 250,451.25 250,535.02

191216BR0 COCA-COLA CO 300,000.00 Industrial AA- 0.875 10/27/201710/27/2017

0.8970.774

299,868.00299,912.78

485.32 100.133 466.67 300,398.10 300,864.77

437076BJ0 HOME DEPOT INC 750,000.00 Industrial A 1.022 09/15/201709/15/2017

1.0381.177

750,000.00750,000.00

2,848.50 100.38 340.83 752,848.50 753,189.33

41284DAB8 HDMOT 16A A2 500,000.00 Asset Backed AAA 1.09 06/17/201907/14/2017

1.0931.008

499,986.55499,987.10

444.55 100.086 242.22 500,431.65 500,673.87

354613AH4 FRANKLIN RESOURCES INC 500,000.00 Financial AA- 1.375 09/15/201709/15/2017

1.111.039

501,815.00501,578.73

432.77 100.402 2,024.31 502,011.50 504,035.81

05581RAC0 BMWLT 161 A2B 600,000.00 Asset Backed AAA 0.948 01/22/201804/26/2017

0.950.887

600,000.00600,000.00

1,216.02 100.203 173.81 601,216.02 601,389.83

17305EFE0 CCCIT 13A6 A6 750,000.00 Asset Backed AAA 1.32 09/07/201809/07/2016

0.9440.818

751,787.11750,512.76

183.62 100.093 3,135.00 750,696.38 753,831.38

--- --- 15,216,073.54 --- AA+ --- 02/19/201807/25/2017

0.9740.927

15,297,447.1515,278,657.37

24,762.69 --- 42,458.21 15,303,420.06 15,345,878.27


14

Page 55

Summary

* Grouped By: BS Class 2. * Groups Sorted By: BS Class 2. * Weighted By: Base Market Value + Accrued.


BookYield,Yield



Loss

MarketPrice

Base AccruedBalance


--- --- 44,153,336.92 --- AA+ --- 05/10/201702/25/2017

0.800.701

44,380,387.1644,249,611.77

47,552.30 --- 120,933.73 44,297,164.07 44,418,097.80


15

Page 56

* Does not Lock Down.

BuyTrade Date,Settle Date

Transaction Type Identifier,Description

CouponRate

FinalMaturity

Broker/Dealer Base Original Units,Base Current Units

Price Purchased Cost,Base Principal

Base AccruedInterest

Base Net TotalRealized Gain

BaseCommission

Base Amount

06/27/201606/30/2016

Buy 037833AM2APPLE INC

1.05 05/05/2017 CastleOak Securities LP 500,000.00500,000.00

100.245 0.00501,225.00

787.50 0.00 0.00 -502,012.50

06/22/201606/30/2016

Buy 13034PYA9CALIFORNIA HSG FIN AGY REV

1.00 02/01/2017 Citigroup Global Markets (AU) 500,000.00500,000.00

100.00 0.00500,000.00

0.00 0.00 0.00 -500,000.00

06/01/201606/02/2016

Buy 3130A5EP0FEDERAL HOME LOAN BANKS

0.625 05/30/2017 APX Asset 1,000,000.001,000,000.00

99.86 0.00998,600.00

34.72 0.00 0.00 -998,634.72

06/24/201606/24/2016

Buy 313313HF8FEDERAL FARM CREDIT BANKS

0.00 06/23/2017 APX Asset 500,000.00500,000.00

99.414 0.00497,067.78

0.00 0.00 0.00 -497,067.78

04/19/201604/20/2016

Buy 3135G0PP2FEDERAL NATIONAL MORTGAGEASSOCIATION

1.00 09/20/2017 CastleOak Securities LP 1,072,000.001,072,000.00

100.352 0.001,075,768.08

893.33 0.00 0.00 -1,076,661.41

04/21/201604/26/2016

Buy 354613AH4FRANKLIN RESOURCES INC

1.375 09/15/2017 Stifel Nicolaus & Co. 500,000.00500,000.00

100.363 0.00501,815.00

782.99 0.00 0.00 -502,597.99

06/07/201606/15/2016

Buy 41284DAB8HDMOT 16A A2

1.09 06/17/2019 J.P. Morgan Securities Inc. (AU) 500,000.00500,000.00

99.997 0.00499,986.55

0.00 0.00 0.00 -499,986.55

05/11/201605/16/2016

Buy 45905UTJ3INTERNATIONAL BANK FORRECONSTRUCTION ANDDEVELOP


99.977 0.00499,885.00

410.34 0.00 0.00 -500,295.34

05/19/201605/24/2016

Buy 45950KBS8INTERNATIONAL FINANCE CORP


100.135 0.00500,677.00

416.67 0.00 0.00 -501,093.67

04/19/201604/27/2016

Buy 65478VAB3NAROT 16B A2A

1.05 04/15/2019 Societe Generale 700,000.00700,000.00

99.992 0.00699,946.87

0.00 0.00 0.00 -699,946.87

05/17/201605/18/2016

Buy 89116EPA5Toronto Dominion Holdings(U.S.A.), Inc.

0.00 02/10/2017 TORONTO DOMINION BK 750,000.00750,000.00

99.241 0.00744,305.00

0.00 0.00 0.00 -744,305.00

05/18/201605/19/2016

Buy 89233GKT2Toyota Motor Credit Corporation

0.00 10/27/2016 Toyota Motor Credit Corp. 500,000.00500,000.00

99.66 0.00498,300.56

0.00 0.00 0.00 -498,300.56

05/19/201605/19/2016

Buy 912828D49UNITED STATES TREASURY

0.875 08/15/2017 MORGAN STANLEY CO 230,000.00230,000.00

100.129 0.00230,296.48

519.71 0.00 0.00 -230,816.19

04/01/201604/01/2016

Buy 949917397WellsFargo:Htge MM;I

0.35 06/30/2016 Direct 503,230.25503,230.25

1.00 503,230.25503,230.25

0.00 0.00 0.00 -503,230.25

04/04/201604/04/2016


0.35 06/30/2016 Direct 3,500.003,500.00

1.00 3,500.003,500.00

0.00 0.00 0.00 -3,500.00

04/12/201604/12/2016


0.35 06/30/2016 Direct 1,746.251,746.25

1.00 1,746.251,746.25

0.00 0.00 0.00 -1,746.25

04/11/201604/11/2016


0.35 06/30/2016 Direct 13,625.0013,625.00

1.00 13,625.0013,625.00

0.00 0.00 0.00 -13,625.00

04/15/201604/15/2016


0.35 06/30/2016 Direct 171,037.94171,037.94

1.00 171,037.94171,037.94

0.00 0.00 0.00 -171,037.94

04/21/201604/21/2016


0.35 06/30/2016 Direct 466.05466.05

1.00 466.05466.05

0.00 0.00 0.00 -466.05

04/18/201604/18/2016


0.35 06/30/2016 Direct 152,001.79152,001.79

1.00 152,001.79152,001.79

0.00 0.00 0.00 -152,001.79

04/26/201604/26/2016


0.35 06/30/2016 Direct 1,742.461,742.46

1.00 1,742.461,742.46

0.00 0.00 0.00 -1,742.46

05/02/201605/02/2016


0.35 06/30/2016 Direct 757,270.03757,270.03

1.00 757,270.03757,270.03

0.00 0.00 0.00 -757,270.03

05/12/201605/12/2016


0.35 06/30/2016 Direct 6,250.006,250.00

1.00 6,250.006,250.00

0.00 0.00 0.00 -6,250.00

05/18/201605/18/2016


0.35 06/30/2016 Direct 1,875.001,875.00

1.00 1,875.001,875.00

0.00 0.00 0.00 -1,875.00

05/17/201605/17/2016


0.35 06/30/2016 Direct 70,417.0370,417.03

1.00 70,417.0370,417.03

0.00 0.00 0.00 -70,417.03

05/16/201605/16/2016


0.35 06/30/2016 Direct 1,875.001,875.00

1.00 1,875.001,875.00

0.00 0.00 0.00 -1,875.00

Trading Activity WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

16

Page 57

Maturity

Trade Date,Settle Date


CouponRate

FinalMaturity





BaseCommission

Base Amount

05/16/201605/16/2016


0.35 06/30/2016 Direct 19,394.9919,394.99

1.00 19,394.9919,394.99

0.00 0.00 0.00 -19,394.99

05/16/201605/16/2016


0.35 06/30/2016 Direct 1,728,798.731,728,798.73

1.00 1,728,798.731,728,798.73

0.00 0.00 0.00 -1,728,798.73

05/23/201605/23/2016


0.35 06/30/2016 Direct 498,863.56498,863.56

1.00 498,863.56498,863.56

0.00 0.00 0.00 -498,863.56

05/20/201605/20/2016


0.35 06/30/2016 Direct 469.38469.38

1.00 469.38469.38

0.00 0.00 0.00 -469.38

05/20/201605/20/2016


0.35 06/30/2016 Direct 14,062.5014,062.50

1.00 14,062.5014,062.50

0.00 0.00 0.00 -14,062.50

05/24/201605/24/2016


0.35 06/30/2016 Direct 1,050.001,050.00

1.00 1,050.001,050.00

0.00 0.00 0.00 -1,050.00

05/31/201605/31/2016


0.35 06/30/2016 Direct 1,562.501,562.50

1.00 1,562.501,562.50

0.00 0.00 0.00 -1,562.50

06/01/201606/01/2016


0.36 06/30/2016 Direct 2,343.932,343.93

1.00 2,343.932,343.93

0.00 0.00 0.00 -2,343.93

06/06/201606/06/2016


0.36 06/30/2016 Direct 686.04686.04

1.00 686.04686.04

0.00 0.00 0.00 -686.04

06/10/201606/10/2016


0.36 06/30/2016 Direct 1,010,625.001,010,625.00

1.00 1,010,625.001,010,625.00

0.00 0.00 0.00 -1,010,625.00

06/09/201606/09/2016


0.36 06/30/2016 Direct 5,000.005,000.00

1.00 5,000.005,000.00

0.00 0.00 0.00 -5,000.00

06/16/201606/16/2016


0.36 06/30/2016 Direct 27.8027.80

1.00 27.8027.80

0.00 0.00 0.00 -27.80

06/16/201606/16/2016


0.36 06/30/2016 Direct 3,760.903,760.90

1.00 3,760.903,760.90

0.00 0.00 0.00 -3,760.90

06/15/201606/15/2016


0.36 06/30/2016 Direct 55,591.7155,591.71

1.00 55,591.7155,591.71

0.00 0.00 0.00 -55,591.71

06/15/201606/15/2016


0.36 06/30/2016 Direct 58,148.4058,148.40

1.00 58,148.4058,148.40

0.00 0.00 0.00 -58,148.40

06/20/201606/20/2016


0.36 06/30/2016 Direct 2,034.992,034.99

1.00 2,034.992,034.99

0.00 0.00 0.00 -2,034.99

06/21/201606/21/2016


0.36 06/30/2016 Direct 484.87484.87

1.00 484.87484.87

0.00 0.00 0.00 -484.87

06/30/201606/30/2016


0.36 06/30/2016 Direct 487.50487.50

1.00 487.50487.50

0.00 0.00 0.00 -487.50

------

Buy ------

--- --- --- 12,840,429.6012,840,429.60

--- 5,088,429.6012,836,302.92

3,845.26 0.00 0.00 -12,840,148.18



CouponRate

FinalMaturity





BaseCommission

Base Amount

05/01/201605/01/2016

Maturity 03255LGX1ANAHEIM CALIF PUB FING AUTHLEASE REV

1.00 05/01/2016 Maturity -750,000.00-750,000.00

100.00 0.00-750,000.00

0.00 0.00 0.00 750,000.00

04/01/201604/01/2016

Maturity 3130A4KE1FEDERAL HOME LOAN BANKS

0.33 04/01/2016 Maturity -500,000.00-500,000.00

100.00 0.00-500,000.00

0.00 0.00 0.00 500,000.00

06/10/201606/10/2016

Maturity 313373SZ6FEDERAL HOME LOAN BANKS

2.125 06/10/2016 Maturity -1,000,000.00-1,000,000.00

100.00 0.00-1,000,000.00

0.00 0.00 0.00 1,000,000.00

05/16/201605/16/2016

Maturity 459058DM2INTERNATIONAL BANK FORRECONSTRUCTION ANDDEVELOP

0.50 05/16/2016 Maturity -1,000,000.00-1,000,000.00

100.00 0.00-1,000,000.00

0.00 0.00 0.00 1,000,000.00

05/16/201605/16/2016

Maturity 459058DM2INTERNATIONAL BANK FORRECONSTRUCTION ANDDEVELOP

0.50 05/16/2016 Maturity -750,000.00-750,000.00

100.00 0.00-750,000.00

0.00 0.00 0.00 750,000.00

05/18/201605/18/2016

Maturity 89233GEJ1Toyota Motor Credit Corporation

0.00 05/18/2016 Maturity -500,000.00-500,000.00

100.00 0.00-500,000.00

0.00 0.00 0.00 500,000.00


17

Page 58

Principal Paydown



CouponRate

FinalMaturity





BaseCommission

Base Amount

06/30/201606/30/2016

Maturity 912828WQ9UNITED STATES TREASURY

0.50 06/30/2016 Maturity -1,000,000.00-1,000,000.00

100.00 0.00-1,000,000.00

0.00 0.00 0.00 1,000,000.00

05/15/201605/15/2016

Maturity 91412GUT0UNIVERSITY CALIF REVS

0.634 05/15/2016 Maturity -250,000.00-250,000.00

100.00 0.00-250,000.00

0.00 0.00 0.00 250,000.00

05/23/201605/23/2016

Maturity 928668AD4VOLKSWAGEN GROUP OFAMERICA FINANCE LLC

0.838 05/23/2016 Maturity -500,000.00-500,000.00

100.00 0.00-500,000.00

0.00 0.00 0.00 500,000.00

------

Maturity ------

--- --- Maturity -6,250,000.00-6,250,000.00

100.00 0.00-6,250,000.00

0.00 0.00 0.00 6,250,000.00



CouponRate

FinalMaturity





BaseCommission

Base Amount

06/15/201606/15/2016

Principal Paydown 31680GAB2FITAT 151 A2A

1.02 05/15/2018 Direct 0.00-34,777.26

--- 0.00-34,777.26

0.00 0.00 0.00 34,777.26

04/15/201604/15/2016

Principal Paydown 41284AAB4HDMOT 141 A2A

0.49 04/15/2018 Direct 0.00-13,613.69

--- 0.00-13,613.69

0.00 -0.00 0.00 13,613.69

06/15/201606/15/2016


0.49 04/15/2018 Direct 0.00-3,759.39

--- 0.00-3,759.39

0.00 0.00 0.00 3,759.39

05/15/201605/15/2016


0.49 04/15/2018 Direct 0.00-12,606.39

--- 0.00-12,606.39

0.00 -0.00 0.00 12,606.39

05/15/201605/15/2016

Principal Paydown 41284BAB2HDMOT 151 A2A

0.80 01/15/2019 Direct 0.00-24,868.34

--- 0.00-24,868.34

0.00 -0.00 0.00 24,868.34

04/15/201604/15/2016


0.80 01/15/2019 Direct 0.00-27,446.36

--- 0.00-27,446.36

0.00 -0.00 0.00 27,446.36

06/15/201606/15/2016


0.80 01/15/2019 Direct 0.00-24,562.47

--- 0.00-24,562.48

0.00 0.01 0.00 24,562.48

04/15/201604/15/2016

Principal Paydown 43814KAB7HAROT 151 A2

0.70 06/15/2017 Direct 0.00-32,185.05

--- 0.00-32,185.05

0.00 -0.00 0.00 32,185.05

06/15/201606/15/2016


0.70 06/15/2017 Direct 0.00-29,363.36

--- 0.00-29,363.36

0.00 0.00 0.00 29,363.36

05/15/201605/15/2016


0.70 06/15/2017 Direct 0.00-30,173.53

--- 0.00-30,173.53

0.00 0.00 0.00 30,173.53

06/15/201606/15/2016

Principal Paydown 47787WAB5JDOT 15B A2

0.98 06/15/2018 Direct 0.00-31,876.81

--- 0.00-31,876.81

0.00 -0.00 0.00 31,876.81

05/15/201605/15/2016

Principal Paydown 47787WAB5JDOT 15B A2

0.98 06/15/2018 Direct 0.00-19,068.32

--- 0.00-19,068.32

0.00 -0.00 0.00 19,068.32

04/15/201604/15/2016

Principal Paydown 58772PAB4MBART 151 A2A

0.82 06/15/2018 Direct 0.00-53,625.79

--- 0.00-53,625.79

0.00 0.00 0.00 53,625.79

05/15/201605/15/2016


0.82 06/15/2018 Direct 0.00-48,786.04

--- 0.00-48,786.04

0.00 -0.00 0.00 48,786.04

06/15/201606/15/2016


0.82 06/15/2018 Direct 0.00-51,166.78

--- 0.00-51,166.78

0.00 0.00 0.00 51,166.78

04/15/201604/15/2016

Principal Paydown 65477WAB2NAROT 14B A2

0.60 06/15/2017 Direct 0.00-74,172.50

--- 0.00-74,172.50

0.00 -0.00 0.00 74,172.50

05/15/201605/15/2016


0.60 06/15/2017 Direct 0.00-63,675.68

--- 0.00-63,675.68

0.00 -0.00 0.00 63,675.68

06/15/201606/15/2016


0.60 06/15/2017 Direct 0.00-55,591.71

--- 0.00-55,591.71

0.00 0.00 0.00 55,591.71

04/15/201604/15/2016

Principal Paydown 89236WAB4TAOT 15A A2

0.71 07/17/2017 Direct 0.00-58,222.61

--- 0.00-58,222.61

0.00 0.00 0.00 58,222.61

06/15/201606/15/2016


0.71 07/17/2017 Direct 0.00-52,362.16

--- 0.00-52,362.15

0.00 -0.01 0.00 52,362.15

05/15/201605/15/2016


0.71 07/17/2017 Direct 0.00-52,382.55

--- 0.00-52,382.55

0.00 0.00 0.00 52,382.55

06/15/201606/15/2016

Principal Paydown 90290XAB3USAOT 151 A2

0.82 03/15/2018 Direct 0.00-54,174.07

--- 0.00-54,174.07

0.00 -0.00 0.00 54,174.07

05/15/201605/15/2016


0.82 03/15/2018 Direct 0.00-55,025.12

--- 0.00-55,025.12

0.00 -0.00 0.00 55,025.12


18

Page 59

Sell

Summary

* Grouped By: Transaction Type. * Groups Sorted By: Transaction Type. * Showing transactions with Trade Date within selected date range. * MMF transactions are expanded.

* The Transaction Detail/Trading Activity reports provide our most up-to-date transactional details. As such, these reports are subject to change even after the other reports on the website have been locked down. While these reports can be useful tools in understanding recent activity,

due to their dynamic nature we do not recommend using them for booking journal entries or reconciliation.



CouponRate

FinalMaturity





BaseCommission

Base Amount

04/15/201604/15/2016


0.82 03/15/2018 Direct 0.00-60,988.90

--- 0.00-60,988.91

0.00 0.01 0.00 60,988.91

------

Principal Paydown ------

--- --- Direct 0.00-964,474.90

--- 0.00-964,474.89

0.00 -0.01 0.00 964,474.89



CouponRate

FinalMaturity





BaseCommission

Base Amount

04/08/201604/08/2016

Sell 949917397WellsFargo:Htge MM;I

0.35 06/30/2016 Direct -46,769.91-46,769.91

1.00 -46,769.91-46,769.91

0.00 0.00 0.00 46,769.91

04/07/201604/07/2016


0.35 06/30/2016 Direct -77,876.63-77,876.63

1.00 -77,876.63-77,876.63

0.00 0.00 0.00 77,876.63

04/20/201604/20/2016


0.35 06/30/2016 Direct -1,080,704.29-1,080,704.29

1.00 -1,080,704.29-1,080,704.29

0.00 0.00 0.00 1,080,704.29

04/27/201604/27/2016


0.35 06/30/2016 Direct -693,009.37-693,009.37

1.00 -693,009.37-693,009.37

0.00 0.00 0.00 693,009.37

04/26/201604/26/2016


0.35 06/30/2016 Direct -502,597.99-502,597.99

1.00 -502,597.99-502,597.99

0.00 0.00 0.00 502,597.99

05/03/201605/03/2016


0.35 06/30/2016 Direct -73,570.00-73,570.00

1.00 -73,570.00-73,570.00

0.00 0.00 0.00 73,570.00

05/19/201605/19/2016


0.35 06/30/2016 Direct -230,816.19-230,816.19

1.00 -230,816.19-230,816.19

0.00 0.00 0.00 230,816.19

05/19/201605/19/2016


0.35 06/30/2016 Direct -498,300.56-498,300.56

1.00 -498,300.56-498,300.56

0.00 0.00 0.00 498,300.56

05/18/201605/18/2016


0.35 06/30/2016 Direct -244,305.00-244,305.00

1.00 -244,305.00-244,305.00

0.00 0.00 0.00 244,305.00

05/24/201605/24/2016


0.35 06/30/2016 Direct -501,093.67-501,093.67

1.00 -501,093.67-501,093.67

0.00 0.00 0.00 501,093.67

05/24/201605/24/2016


0.35 06/30/2016 Direct -1,875.00-1,875.00

1.00 -1,875.00-1,875.00

0.00 0.00 0.00 1,875.00

06/02/201606/02/2016


0.36 06/30/2016 Direct -998,634.72-998,634.72

1.00 -998,634.72-998,634.72

0.00 0.00 0.00 998,634.72

06/15/201606/15/2016


0.36 06/30/2016 Direct -273,132.08-273,132.08

1.00 -273,132.08-273,132.08

0.00 0.00 0.00 273,132.08

06/20/201606/20/2016


0.36 06/30/2016 Direct -4,288.69-4,288.69

1.00 -4,288.69-4,288.69

0.00 0.00 0.00 4,288.69

06/24/201606/24/2016


0.36 06/30/2016 Direct -497,067.78-497,067.78

1.00 -497,067.78-497,067.78

0.00 0.00 0.00 497,067.78

------


--- 06/30/2016 Direct -5,724,041.88-5,724,041.88

1.00 -5,724,041.88-5,724,041.88

0.00 0.00 0.00 5,724,041.88



CouponRate

FinalMaturity





BaseCommission

Base Amount

------

--- ------

--- --- --- 866,387.72-98,087.18

--- -635,612.28-102,213.85

3,845.26 -0.01 0.00 98,368.59


19

Page 60


Receivable

Settled

Entry Date Settle Date Transaction Type Base Current Units Identifier Description CouponRate

Final Maturity Price Base Amount

06/30/2016 06/30/2016 Money Market Funds 0.00 949917397 WellsFargo:Htge MM;I 0.36 06/30/2016 --- 354.81




06/20/2016 06/20/2016 Coupon 0.00 02665WAY7 AMERICAN HONDA FINANCE CORP 1.097 09/20/2017 --- 2,034.99

05/01/2016 05/01/2016 Coupon 0.00 03255LGX1 ANAHEIM CALIF PUB FING AUTH LEASE REV 1.00 05/01/2016 --- 3,750.00

05/01/2016 05/01/2016 Maturity -750,000.00 03255LGX1 ANAHEIM CALIF PUB FING AUTH LEASE REV 1.00 05/01/2016 100.00 750,000.00

06/27/2016 06/30/2016 Buy 500,000.00 037833AM2 APPLE INC 1.05 05/05/2017 100.245 -502,012.50

06/20/2016 06/20/2016 Coupon 0.00 05581RAC0 BMWLT 161 A2B 0.948 01/22/2018 --- 484.87



05/16/2016 05/16/2016 Coupon 0.00 06050TLU4 BANK OF AMERICA NA 1.096 02/14/2017 --- 1,360.25

06/06/2016 06/06/2016 Coupon 0.00 06050TMB5 BANK OF AMERICA NA 1.13 06/05/2017 --- 686.04

04/03/2016 04/03/2016 Coupon 0.00 07330NAH8 BRANCH BANKING AND TRUST CO 1.00 04/03/2017 --- 3,500.00

04/12/2016 04/12/2016 Coupon 0.00 084664CD1 BERKSHIRE HATHAWAY FINANCE CORP 0.931 01/12/2018 --- 1,746.25

05/20/2016 05/20/2016 Coupon 0.00 097023BC8 BOEING CO 3.75 11/20/2016 --- 14,062.50

06/22/2016 06/30/2016 Buy 500,000.00 13034PYA9 CALIFORNIA HSG FIN AGY REV 1.00 02/01/2017 100.00 -500,000.00

06/15/2016 06/15/2016 Coupon 0.00 161571GJ7 CHAIT 141 A 1.15 01/15/2019 --- 742.71

04/15/2016 04/15/2016 Coupon 0.00 161571GJ7 CHAIT 141 A 1.15 01/15/2019 --- 742.71

05/15/2016 05/15/2016 Coupon 0.00 161571GJ7 CHAIT 141 A 1.15 01/15/2019 --- 742.71

05/15/2016 05/15/2016 Coupon 0.00 166764AL4 CHEVRON CORP 1.345 11/15/2017 --- 4,707.50

06/15/2016 06/15/2016 Coupon 0.00 17275RAY8 CISCO SYSTEMS INC 0.963 06/15/2018 --- 1,809.05

04/27/2016 04/27/2016 Coupon 0.00 191216BR0 COCA-COLA CO 0.875 10/27/2017 --- 1,312.50

05/28/2016 05/28/2016 Coupon 0.00 30231GAS1 EXXON MOBIL CORP 1.232 02/28/2018 --- 1,705.08

05/23/2016 05/23/2016 Coupon 0.00 3130A3J70 FEDERAL HOME LOAN BANKS 0.625 11/23/2016 --- 3,125.00

04/01/2016 04/01/2016 Coupon 0.00 3130A4KE1 FEDERAL HOME LOAN BANKS 0.33 04/01/2016 --- 825.00

04/01/2016 04/01/2016 Maturity -500,000.00 3130A4KE1 FEDERAL HOME LOAN BANKS 0.33 04/01/2016 100.00 500,000.00

06/01/2016 06/02/2016 Buy 1,000,000.00 3130A5EP0 FEDERAL HOME LOAN BANKS 0.625 05/30/2017 99.86 -998,634.72

06/24/2016 06/24/2016 Buy 500,000.00 313313HF8 FEDERAL FARM CREDIT BANKS 0.00 06/23/2017 99.414 -497,067.78

06/10/2016 06/10/2016 Coupon 0.00 313373SZ6 FEDERAL HOME LOAN BANKS 2.125 06/10/2016 --- 10,625.00

06/10/2016 06/10/2016 Maturity -1,000,000.00 313373SZ6 FEDERAL HOME LOAN BANKS 2.125 06/10/2016 100.00 1,000,000.00

06/09/2016 06/09/2016 Coupon 0.00 313379FW4 FEDERAL HOME LOAN BANKS 1.00 06/09/2017 --- 5,000.00

04/27/2016 04/27/2016 Coupon 0.00 3135G0JA2 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.125 04/27/2017 --- 5,625.00

04/19/2016 04/20/2016 Buy 1,072,000.00 3135G0PP2 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1.00 09/20/2017 100.352 -1,076,661.41

05/12/2016 05/12/2016 Coupon 0.00 3137EADF3 FREDDIE MAC 1.25 05/12/2017 --- 6,250.00

06/15/2016 06/15/2016 Coupon 0.00 31680GAB2 FITAT 151 A2A 1.02 05/15/2018 --- 425.00

06/15/2016 06/15/2016 Principal Paydown -34,777.26 31680GAB2 FITAT 151 A2A 1.02 05/15/2018 --- 34,777.26



04/21/2016 04/26/2016 Buy 500,000.00 354613AH4 FRANKLIN RESOURCES INC 1.375 09/15/2017 100.363 -502,597.99

04/15/2016 04/15/2016 Coupon 0.00 41284AAB4 HDMOT 141 A2A 0.49 04/15/2018 --- 12.24

04/15/2016 04/15/2016 Principal Paydown -13,613.69 41284AAB4 HDMOT 141 A2A 0.49 04/15/2018 --- 13,613.69



Transaction Detail WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

20

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05/15/2016 05/15/2016 Principal Paydown -24,868.34 41284BAB2 HDMOT 151 A2A 0.80 01/15/2019 --- 24,868.34

05/15/2016 05/15/2016 Coupon 0.00 41284BAB2 HDMOT 151 A2A 0.80 01/15/2019 --- 147.00





06/07/2016 06/15/2016 Buy 500,000.00 41284DAB8 HDMOT 16A A2 1.09 06/17/2019 99.997 -499,986.55

06/15/2016 06/15/2016 Coupon 0.00 437076BJ0 HOME DEPOT INC 1.022 09/15/2017 --- 1,924.05

04/15/2016 04/15/2016 Coupon 0.00 43814KAB7 HAROT 151 A2 0.70 06/15/2017 --- 93.02

04/15/2016 04/15/2016 Principal Paydown -32,185.05 43814KAB7 HAROT 151 A2 0.70 06/15/2017 --- 32,185.05





05/16/2016 05/16/2016 Maturity -750,000.00 459058DM2 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOP

0.50 05/16/2016 100.00 750,000.00

05/16/2016 05/16/2016 Maturity -1,000,000.00 459058DM2 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOP

0.50 05/16/2016 100.00 1,000,000.00

05/16/2016 05/16/2016 Coupon 0.00 459058DM2 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOP

0.50 05/16/2016 --- 4,375.00

06/30/2016 06/30/2016 Coupon 0.00 45905UTJ3 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOP

0.631 09/30/2017 --- 805.00

05/11/2016 05/16/2016 Buy 500,000.00 45905UTJ3 INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOP

0.629 09/30/2017 99.977 -500,295.34

05/19/2016 05/24/2016 Buy 500,000.00 45950KBS8 INTERNATIONAL FINANCE CORP 1.00 04/24/2017 100.135 -501,093.67

06/15/2016 06/15/2016 Principal Paydown -31,876.81 47787WAB5 JDOT 15B A2 0.98 06/15/2018 --- 31,876.81

06/15/2016 06/15/2016 Coupon 0.00 47787WAB5 JDOT 15B A2 0.98 06/15/2018 --- 311.09



05/15/2016 05/15/2016 Principal Paydown -19,068.32 47787WAB5 JDOT 15B A2 0.98 06/15/2018 --- 19,068.32

05/01/2016 05/01/2016 Coupon 0.00 544587B72 LOS ANGELES CALIF MUN IMPT CORP LEASEREV

1.26 11/01/2016 --- 2,778.30

04/15/2016 04/15/2016 Principal Paydown -53,625.79 58772PAB4 MBART 151 A2A 0.82 06/15/2018 --- 53,625.79

04/15/2016 04/15/2016 Coupon 0.00 58772PAB4 MBART 151 A2A 0.82 06/15/2018 --- 410.97





04/01/2016 04/01/2016 Coupon 0.00 605581FW2 MISSISSIPPI ST 0.64 10/01/2016 --- 960.00

04/10/2016 04/10/2016 Coupon 0.00 637432HT5 NATIONAL RURAL UTILITIES COOP FINANCECORP

5.45 04/10/2017 --- 13,625.00

04/15/2016 04/15/2016 Coupon 0.00 65477WAB2 NAROT 14B A2 0.60 06/15/2017 --- 96.72

04/15/2016 04/15/2016 Principal Paydown -74,172.50 65477WAB2 NAROT 14B A2 0.60 06/15/2017 --- 74,172.50





04/19/2016 04/27/2016 Buy 700,000.00 65478VAB3 NAROT 16B A2A 1.05 04/15/2019 99.992 -699,946.87

06/15/2016 06/15/2016 Coupon 0.00 65478VAB3 NAROT 16B A2A 1.05 04/15/2019 --- 612.50

05/15/2016 05/15/2016 Coupon 0.00 65478VAB3 NAROT 16B A2A 1.05 04/15/2019 --- 367.50


21

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05/17/2016 05/18/2016 Buy 750,000.00 89116EPA5 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 02/10/2017 99.241 -744,305.00

05/18/2016 05/18/2016 Maturity -500,000.00 89233GEJ1 Toyota Motor Credit Corporation 0.00 05/18/2016 100.00 500,000.00

05/18/2016 05/19/2016 Buy 500,000.00 89233GKT2 Toyota Motor Credit Corporation 0.00 10/27/2016 99.66 -498,300.56

04/15/2016 04/15/2016 Coupon 0.00 89236WAB4 TAOT 15A A2 0.71 07/17/2017 --- 191.71

04/15/2016 04/15/2016 Principal Paydown -58,222.61 89236WAB4 TAOT 15A A2 0.71 07/17/2017 --- 58,222.61





06/15/2016 06/15/2016 Principal Paydown -54,174.07 90290XAB3 USAOT 151 A2 0.82 03/15/2018 --- 54,174.07

06/15/2016 06/15/2016 Coupon 0.00 90290XAB3 USAOT 151 A2 0.82 03/15/2018 --- 241.23





04/26/2016 04/26/2016 Coupon 0.00 90331HMR1 US BANK NA 0.936 01/26/2018 --- 1,742.46

05/19/2016 05/19/2016 Buy 230,000.00 912828D49 UNITED STATES TREASURY 0.875 08/15/2017 100.129 -230,816.19

05/31/2016 05/31/2016 Coupon 0.00 912828SY7 UNITED STATES TREASURY 0.625 05/31/2017 --- 1,562.50

06/30/2016 06/30/2016 Maturity -1,000,000.00 912828WQ9 UNITED STATES TREASURY 0.50 06/30/2016 100.00 1,000,000.00

06/30/2016 06/30/2016 Coupon 0.00 912828WQ9 UNITED STATES TREASURY 0.50 06/30/2016 --- 2,500.00

05/02/2016 05/02/2016 Coupon 0.00 91412GEZ4 UNIVERSITY CALIF REVS 0.938 07/01/2017 --- 241.28



05/15/2016 05/15/2016 Coupon 0.00 91412GUT0 UNIVERSITY CALIF REVS 0.634 05/15/2016 --- 792.50

05/15/2016 05/15/2016 Maturity -250,000.00 91412GUT0 UNIVERSITY CALIF REVS 0.634 05/15/2016 100.00 250,000.00

05/23/2016 05/23/2016 Maturity -500,000.00 928668AD4 VOLKSWAGEN GROUP OF AMERICA FINANCELLC

0.838 05/23/2016 100.00 500,000.00

05/23/2016 05/23/2016 Coupon 0.00 928668AD4 VOLKSWAGEN GROUP OF AMERICA FINANCELLC

0.838 05/23/2016 --- 1,050.00

04/01/2016 04/01/2016 Buy 503,230.25 949917397 WellsFargo:Htge MM;I 0.35 06/30/2016 1.00 -503,230.25


04/08/2016 04/08/2016 Sell -46,769.91 949917397 WellsFargo:Htge MM;I 0.35 06/30/2016 1.00 46,769.91





04/21/2016 04/21/2016 Buy 466.05 949917397 WellsFargo:Htge MM;I 0.35 06/30/2016 1.00 -466.05

04/20/2016 04/20/2016 Sell -1,080,704.29 949917397 WellsFargo:Htge MM;I 0.35 06/30/2016 1.00 1,080,704.29














22

Page 63

Summary

* Grouped By: Status. * Groups Sorted By: Status. * Showing transactions with Entry Date within selected date range. * MMF transactions are expanded.






05/16/2016 05/16/2016 Buy 1,728,798.73 949917397 WellsFargo:Htge MM;I 0.35 06/30/2016 1.00 -1,728,798.73














06/10/2016 06/10/2016 Buy 1,010,625.00 949917397 WellsFargo:Htge MM;I 0.36 06/30/2016 1.00 -1,010,625.00












04/07/2016 04/07/2016 Cash Transfer 0.00 CCYUSD US Dollar 0.00 06/30/2016 --- -77,876.63



04/20/2016 04/20/2016 Management Fee 0.00 CCYUSD US Dollar 0.00 06/30/2016 --- -4,042.88



--- --- --- -98,087.18 --- --- --- --- --- -397.86



--- --- --- -98,087.18 --- --- --- --- --- -43.05


23

Page 64


Receivable

Settled

Entry Date Settle Date Transaction Type Base Current Units Identifier Ticker Description Base Amount

06/30/2016 06/30/2016 Money Market Funds 0.00 949917397 SHIXX WellsFargo:Htge MM;I 354.81



04/01/2016 04/01/2016 Buy 503,230.25 949917397 SHIXX WellsFargo:Htge MM;I -503,230.25


04/08/2016 04/08/2016 Sell -46,769.91 949917397 SHIXX WellsFargo:Htge MM;I 46,769.91





04/21/2016 04/21/2016 Buy 466.05 949917397 SHIXX WellsFargo:Htge MM;I -466.05

04/20/2016 04/20/2016 Sell -1,080,704.29 949917397 SHIXX WellsFargo:Htge MM;I 1,080,704.29














05/16/2016 05/16/2016 Buy 1,728,798.73 949917397 SHIXX WellsFargo:Htge MM;I -1,728,798.73














06/10/2016 06/10/2016 Buy 1,010,625.00 949917397 SHIXX WellsFargo:Htge MM;I -1,010,625.00






MMF Transaction Detail WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

24

Page 65

Summary

* Grouped By: Status. * Groups Sorted By: Status. * Filtered By: Security Type = "MMFUND". * Showing transactions with Entry Date within selected date range. * MMF transactions are expanded.










--- --- --- -635,612.28 949917397 SHIXX WellsFargo:Htge MM;I 636,516.88


--- --- --- -635,612.28 949917397 SHIXX WellsFargo:Htge MM;I 636,871.69

MMF Transaction Detail WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

25

Page 66

Identifier,Description

Beginning MarketValue + Accrued,Base Purchases

Base Sales,Base Maturities and

Redemptions

Base Paydowns Base Net TransferredValue

Base Amortization/Accretion

Change In AccruedBalance

Net RealizedGain/Loss

Base Change InNet Unrealized

Gain/Loss

Base Change In Cash,Payables/Receivables

Ending Market Value +Accrued

41284AAB4HDMOT 141 A2A

29,972.770.00

0.000.00

-29,979.47 0.00 0.19 -6.53 -0.01 13.04 0.00 0.00

47787WAB5JDOT 15B A2

399,957.220.00

0.000.00

-50,945.13 0.00 2.96 -22.19 -0.00 272.85 0.00 349,265.71

65477WAB2NAROT 14B A2

193,397.440.00

0.000.00

-193,439.89 0.00 1.41 -51.58 -0.00 92.62 0.00 0.00

89236WAB4TAOT 15A A2

323,977.910.00

0.000.00

-162,967.31 0.00 0.71 -51.43 -0.00 119.66 0.00 161,079.55

949917397WellsFargo:Htge MM;I

1,678,975.855,088,429.60

-5,724,041.880.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,043,363.57

65478VAB3NAROT 16B A2A

0.00699,946.87

0.000.00

0.00 0.00 5.03 326.67 0.00 1,247.20 0.00 701,525.77

459058DM2INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

751,995.750.00

0.00-750,000.00

0.00 0.00 10.02 -1,406.25 0.00 -599.52 0.00 0.00

459058DM2INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

1,002,661.000.00

0.00-1,000,000.00

0.00 0.00 8.18 -1,875.00 0.00 -794.18 0.00 0.00

3130A4KE1FEDERAL HOME LOAN BANKS

500,825.000.00

0.00-500,000.00

0.00 0.00 0.00 -825.00 0.00 0.00 0.00 0.00

13034PYA9CALIFORNIA HSG FIN AGY REV

0.00500,000.00

0.000.00

0.00 0.00 0.00 13.89 0.00 125.00 0.00 500,138.89

605581FW2MISSISSIPPI ST

301,407.000.00

0.000.00

0.00 0.00 0.00 -480.00 0.00 -189.00 0.00 300,738.00

46623EJY6JPMORGAN CHASE & CO

501,962.500.00

0.000.00

0.00 0.00 -116.40 1,687.50 0.00 32.40 0.00 503,566.00

90331HMR1US BANK NA

448,798.510.00

0.000.00

0.00 0.00 -114.44 13.82 0.00 1,235.39 0.00 449,933.28

90331HMR1US BANK NA

299,199.010.00

0.000.00

0.00 0.00 0.00 9.21 0.00 747.30 0.00 299,955.52

06050TLU4BANK OF AMERICA NA

500,714.130.00

0.000.00

0.00 0.00 0.00 20.16 0.00 661.50 0.00 501,395.79

084664CD1BERKSHIRE HATHAWAY FINANCE CORP

751,499.920.00

0.000.00

0.00 0.00 0.00 16.17 0.00 289.50 0.00 751,805.58

3137EADF3FREDDIE MAC

1,010,973.390.00

0.000.00

0.00 0.00 -1,071.08 -3,125.00 0.00 675.08 0.00 1,007,452.39

3133EFBT3FEDERAL FARM CREDIT BANKSFUNDING CORP

999,898.000.00

0.000.00

0.00 0.00 49.73 1,050.00 0.00 428.27 0.00 1,001,426.00

880591EA6TENNESSEE VALLEY AUTHORITY

627,963.330.00

0.000.00

0.00 0.00 -6,694.88 8,057.50 0.00 875.90 0.00 630,201.85

161571GJ7CHAIT 141 A

776,723.530.00

0.000.00

0.00 0.00 -249.97 0.00 0.00 474.49 0.00 776,948.05

45905UTJ3INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

0.00499,885.00

0.000.00

0.00 0.00 10.54 8.77 0.00 -215.04 0.00 499,689.27

912828D49UNITED STATES TREASURY

0.00230,296.48

0.000.00

0.00 0.00 -28.14 757.45 0.00 585.19 0.00 231,610.98

03255LGX1ANAHEIM CALIF PUB FING AUTH LEASEREV

753,372.500.00

0.00-750,000.00

0.00 0.00 0.00 -3,125.00 0.00 -247.50 0.00 0.00

912828QX1UNITED STATES TREASURY

1,006,262.740.00

0.000.00

0.00 0.00 -2,644.96 3,750.00 0.00 -25.04 0.00 1,007,342.74

4197915E4HAWAII ST

752,031.250.00

0.000.00

0.00 0.00 0.00 1,370.63 0.00 -900.00 0.00 752,501.88

912828SY7UNITED STATES TREASURY

500,757.200.00

0.000.00

0.00 0.00 130.28 -785.52 0.00 611.72 0.00 500,713.69

69353RCG1PNC BANK NA

752,308.500.00

0.000.00

0.00 0.00 0.00 2,109.38 0.00 -166.50 0.00 754,251.38

Roll Forward WC-Contra Costa County (19529)Base Currency: USD 04/01/2016 - 06/30/2016 Return to Table of Contents Dated: 07/06/2016

26

Page 67




Redemptions






Gain/Loss



313313HF8FEDERAL FARM CREDIT BANKS

0.00497,067.78

0.000.00

0.00 0.00 56.39 0.00 0.00 148.83 0.00 497,273.00

166764AL4CHEVRON CORP

707,773.580.00

0.000.00

0.00 0.00 276.75 -2,353.75 0.00 -839.55 0.00 704,857.03

3130A3J70FEDERAL HOME LOAN BANKS

1,002,692.220.00

0.000.00

0.00 0.00 -349.24 -1,562.50 0.00 416.24 0.00 1,001,196.72

097023BC8BOEING CO

773,269.380.00

0.000.00

0.00 0.00 -5,363.38 -7,031.25 0.00 695.38 0.00 761,570.13

3130A5EP0FEDERAL HOME LOAN BANKS

0.00998,600.00

0.000.00

0.00 0.00 112.15 538.19 0.00 1,749.85 0.00 1,001,000.19

928668AD4VOLKSWAGEN GROUP OF AMERICAFINANCE LLC

499,283.880.00

0.00-500,000.00

0.00 0.00 0.00 -442.38 0.00 1,158.50 0.00 0.00

912828VL1UNITED STATES TREASURY

1,002,103.120.00

0.000.00

0.00 0.00 -667.59 1,562.50 0.00 53.59 0.00 1,003,051.62

4581X0BV9INTER-AMERICAN DEVELOPMENT BANK

1,003,303.000.00

0.000.00

0.00 0.00 -733.32 2,812.50 0.00 2,766.32 0.00 1,008,148.50

4581X0BV9INTER-AMERICAN DEVELOPMENT BANK

601,981.800.00

0.000.00

0.00 0.00 -504.84 1,687.50 0.00 1,724.64 0.00 604,889.10

41284DAB8HDMOT 16A A2

0.00499,986.55

0.000.00

0.00 0.00 0.55 242.22 0.00 444.55 0.00 500,673.87

3137EACW7FREDDIE MAC

236,862.850.00

0.000.00

0.00 0.00 -681.96 1,175.00 0.00 -161.22 0.00 237,194.67

354613AH4FRANKLIN RESOURCES INC

0.00501,815.00

0.000.00

0.00 0.00 -236.27 2,024.31 0.00 432.77 0.00 504,035.81

CCYUSDReceivable

1,204.470.00

0.000.00

0.00 0.00 0.00 0.00 0.00 0.00 -849.67 354.80

CCYUSDCash

-1.970.00

0.000.00

0.00 0.00 0.00 0.00 0.00 0.00 806.15 804.18

CCYUSDPayable

0.000.00

0.000.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

45950KBS8INTERNATIONAL FINANCE CORP

0.00500,677.00

0.000.00

0.00 0.00 -76.79 930.56 0.00 710.79 0.00 502,241.56

3130A2T97FEDERAL HOME LOAN BANKS

999,987.670.00

0.000.00

0.00 0.00 -281.60 1,250.00 0.00 721.60 0.00 1,001,677.67

3130A2T97FEDERAL HOME LOAN BANKS

499,993.830.00

0.000.00

0.00 0.00 -103.75 625.00 0.00 323.75 0.00 500,838.83

05581RAC0BMWLT 161 A2B

600,224.700.00

0.000.00

0.00 0.00 0.00 2.92 0.00 1,162.20 0.00 601,389.83

76912TJC8RIVERSIDE CNTY CALIF PUB FING AUTHTAX ALLOC REV

125,015.420.00

0.000.00

0.00 0.00 92.08 312.50 0.00 -47.08 0.00 125,372.92

07330NAH8BRANCH BANKING AND TRUST CO

702,843.710.00

0.000.00

0.00 0.00 519.04 -1,750.00 0.00 240.46 0.00 701,853.21

912828RF9UNITED STATES TREASURY

1,003,330.570.00

0.000.00

0.00 0.00 -1,405.96 2,472.83 0.00 102.96 0.00 1,004,500.39

912828RF9UNITED STATES TREASURY

1,003,330.570.00

0.000.00

0.00 0.00 -1,041.02 2,472.83 0.00 -261.98 0.00 1,004,500.39

912828WQ9UNITED STATES TREASURY

1,001,731.740.00

0.00-1,000,000.00

0.00 0.00 -101.13 -1,263.74 0.00 -366.87 0.00 0.00

17305EFE0CCCIT 13A6 A6

752,043.600.00

0.000.00

0.00 0.00 -686.19 2,475.00 0.00 -1.04 0.00 753,831.38

91412GEZ4UNIVERSITY CALIF REVS

300,149.320.00

0.000.00

0.00 0.00 0.00 -3.32 0.00 138.00 0.00 300,284.00

45905U7F5INTERNATIONAL BK FOR RECON & DEVMEDIUM TERM BK N

1,000,020.000.00

0.000.00

0.00 0.00 0.00 1,125.00 0.00 780.00 0.00 1,001,925.00

30231GAS1EXXON MOBIL CORP

562,250.710.00

0.000.00

0.00 0.00 0.00 58.79 0.00 2,471.28 0.00 564,780.78


27

Page 68




Redemptions






Gain/Loss



17275RAY8CISCO SYSTEMS INC

748,587.530.00

0.000.00

0.00 0.00 0.00 -13.45 0.00 2,862.75 0.00 751,436.83

06406HBX6BANK OF NEW YORK MELLON CORP

756,896.250.00

0.000.00

0.00 0.00 -3,079.87 4,312.50 0.00 -57.38 0.00 758,071.50

89116EPA5Toronto Dominion Holdings (U.S.A.), Inc.

0.00744,305.00

0.000.00

0.00 0.00 935.00 0.00 0.00 400.63 0.00 745,640.63

313384ZK8FEDERAL HOME LOAN BANKS

499,475.000.00

0.000.00

0.00 0.00 770.97 0.00 0.00 -278.97 0.00 499,967.00

3137EADT3FREDDIE MAC

1,002,901.920.00

0.000.00

0.00 0.00 -395.77 2,187.50 0.00 830.77 0.00 1,005,524.42

637432HT5NATIONAL RURAL UTILITIES COOPFINANCE CORP

534,970.750.00

0.000.00

0.00 0.00 -5,402.46 -6,812.50 0.00 -66.04 0.00 522,689.75

762494QV7RIALTO CALIF UNI SCH DIST

251,686.670.00

0.000.00

0.00 0.00 0.00 786.25 0.00 -372.50 0.00 252,100.42

3135G0PP2FEDERAL NATIONAL MORTGAGEASSOCIATION

0.001,075,768.08

0.000.00

0.00 0.00 -523.75 3,007.56 0.00 1,809.08 0.00 1,080,060.96

037833AM2APPLE INC

0.00501,225.00

0.000.00

0.00 0.00 -3.96 802.08 0.00 -43.04 0.00 501,980.08

313379FW4FEDERAL HOME LOAN BANKS

1,006,856.110.00

0.000.00

0.00 0.00 -640.14 -2,500.00 0.00 800.14 0.00 1,004,516.11

912828TS9UNITED STATES TREASURY

998,728.080.00

0.000.00

0.00 0.00 15.13 1,553.96 0.00 2,211.87 0.00 1,002,509.04

06050TMB5BANK OF AMERICA NA

249,851.720.00

0.000.00

0.00 0.00 0.00 7.73 0.00 595.75 0.00 250,455.20

09247XAC5BLACKROCK INC

538,246.390.00

0.000.00

0.00 0.00 -6,161.03 7,812.50 0.00 1,022.03 0.00 540,919.89

313373SZ6FEDERAL HOME LOAN BANKS

1,009,766.080.00

0.00-1,000,000.00

0.00 0.00 -3,090.88 -6,552.08 0.00 -123.12 0.00 0.00

3135G0JA2FEDERAL NATIONAL MORTGAGEASSOCIATION

1,009,497.500.00

0.000.00

0.00 0.00 -758.70 -2,812.50 0.00 501.70 0.00 1,006,428.00

91412GUT0UNIVERSITY CALIF REVS

250,731.280.00

0.00-250,000.00

0.00 0.00 0.00 -598.78 0.00 -132.50 0.00 0.00

45905UQG2INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

600,958.680.00

0.000.00

0.00 0.00 98.67 937.50 0.00 -729.27 0.00 601,265.58

02665WAY7AMERICAN HONDA FINANCE CORP

501,111.400.00

0.000.00

0.00 0.00 0.00 -11.36 0.00 -30.00 0.00 501,070.04

02665WAY7AMERICAN HONDA FINANCE CORP

250,555.700.00

0.000.00

0.00 0.00 -8.48 -5.68 0.00 -6.52 0.00 250,535.02

191216BR0COCA-COLA CO

301,650.620.00

0.000.00

0.00 0.00 16.43 -656.25 0.00 -146.03 0.00 300,864.77

437076BJ0HOME DEPOT INC

752,980.530.00

0.000.00

0.00 0.00 0.00 -14.70 0.00 223.50 0.00 753,189.33

89233GKT2Toyota Motor Credit Corporation

0.00498,300.56

0.000.00

0.00 0.00 453.89 0.00 0.00 88.61 0.00 498,843.05

14912L4X6CATERPILLAR FINANCIAL SERVICESCORP

781,158.670.00

0.000.00

0.00 0.00 -2,697.91 3,971.88 0.00 -61.09 0.00 782,371.54

544587B72LOS ANGELES CALIF MUN IMPT CORPLEASE REV

493,199.700.00

0.000.00

0.00 0.00 0.00 -1,234.80 0.00 29.40 0.00 491,994.30

89233GEJ1Toyota Motor Credit Corporation

499,675.340.00

0.00-500,000.00

0.00 0.00 352.50 0.00 0.00 -27.84 0.00 0.00

68428LDM3ORANGE CNTY CALIF PENSION OBLIG

250,925.580.00

0.000.00

0.00 0.00 0.00 586.25 0.00 -177.50 0.00 251,334.33

58772PAB4MBART 151 A2A

601,201.330.00

0.000.00

-153,578.61 0.00 267.46 -55.97 0.00 173.76 0.00 448,007.97


28

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* Weighted By: Ending Base Market Value + Accrued.




Redemptions






Gain/Loss



43814KAB7HAROT 151 A2

159,467.120.00

0.000.00

-91,721.94 0.00 1.55 -28.54 0.00 36.23 0.00 67,754.43

90290XAB3USAOT 151 A2

468,952.160.00

0.000.00

-170,188.10 0.00 4.81 -62.02 0.00 90.20 0.00 298,797.05

41284BAB2HDMOT 151 A2A

247,785.360.00

0.000.00

-76,877.18 0.00 0.40 -27.33 0.00 136.72 0.00 171,017.97

31680GAB2FITAT 151 A2A

500,132.620.00

0.000.00

-34,777.26 0.00 2.58 -15.77 0.00 259.00 0.00 465,601.17

------

44,512,978.6812,836,302.92

-5,724,041.88-6,250,000.00

-964,474.89 0.00 -41,720.48 19,362.31 -0.01 29,734.66 -43.52 44,418,097.80


29

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Identifier Description Security Type Base Market Value BookYield

Yield Duration -200 Basis PointShock

-100 Basis PointShock


50 Basis PointShock

100 Basis PointShock


02665WAY7 AMERICAN HONDA FINANCE CORP CORP 751,353.75 1.109 1.412 0.221 753,698.51 753,014.32 752,184.01 750,523.52 749,693.33 748,033.07

037833AM2 APPLE INC CORP 501,178.00 0.759 0.77 0.841 504,423.64 504,423.64 503,285.52 499,070.62 496,963.37 492,749.29

05581RAC0 BMWLT 161 A2B ABS 601,216.02 0.95 0.887 0.052 601,493.32 601,493.32 601,372.34 601,059.70 600,903.39 600,590.76

06050TLU4 BANK OF AMERICA NA CORP 500,695.50 1.12 1.302 0.118 501,464.79 501,286.35 500,990.92 500,400.10 500,104.70 499,513.96

06050TMB5 BANK OF AMERICA NA CORP 250,259.00 1.145 1.584 0.181 250,976.53 250,711.98 250,485.49 250,032.52 249,806.04 249,353.11

06406HBX6 BANK OF NEW YORK MELLON CORP CORP 750,740.25 0.644 1.02 0.077 751,329.88 751,318.32 751,029.28 750,451.21 750,162.18 749,584.11

07330NAH8 BRANCH BANKING AND TRUST CO CORP 700,142.10 1.30 0.97 0.724 705,055.24 705,055.24 702,675.60 697,606.57 695,069.01 689,987.80

084664CD1 BERKSHIRE HATHAWAY FINANCECORP

CORP 750,254.25 0.946 1.204 0.028 750,507.18 750,464.32 750,359.29 750,149.21 750,044.18 749,834.11

09247XAC5 BLACKROCK INC CORP 531,718.50 1.242 0.956 1.16 537,615.53 537,615.53 534,802.60 528,634.67 525,551.10 519,384.76

097023BC8 BOEING CO CORP 758,367.00 0.849 0.862 0.387 760,896.95 760,896.95 759,834.47 756,899.59 755,432.23 752,497.69

13034PYA9 CALIFORNIA HSG FIN AGY REV MUNI 500,125.00 1.00 0.993 0.591 503,060.20 503,060.20 501,602.91 498,647.17 497,169.41 494,214.12

14912L4X6 CATERPILLAR FINANCIAL SERVICESCORP

CORP 775,751.75 0.643 0.915 0.086 776,362.22 776,362.22 776,085.33 775,418.19 775,084.64 774,417.61

161571GJ7 CHAIT 141 A ABS 776,551.94 1.01 0.781 0.538 779,814.98 779,814.98 778,640.92 774,463.07 772,374.32 768,197.17

166764AL4 CHEVRON CORP CORP 703,654.00 1.506 0.962 1.359 712,854.09 712,854.09 708,435.55 698,872.89 694,092.22 684,532.20

17275RAY8 CISCO SYSTEMS INC CORP 751,116.00 0.976 0.996 0.209 752,679.63 752,679.63 751,900.94 750,331.10 749,546.24 747,976.64

17305EFE0 CCCIT 13A6 A6 ABS 750,696.38 0.944 0.818 0.185 751,832.43 751,832.43 751,390.78 750,001.99 749,307.62 747,918.95

191216BR0 COCA-COLA CO CORP 300,398.10 0.897 0.774 1.313 303,451.15 303,451.15 302,370.30 298,426.08 296,454.23 292,511.09

30231GAS1 EXXON MOBIL CORP CORP 564,166.40 1.29 1.026 0.161 565,098.35 565,074.74 564,620.56 563,712.25 563,258.12 562,349.90

3130A2T97 FEDERAL HOME LOAN BANKS AGCY BOND 1,500,579.00 0.396 0.342 0.244 1,501,831.22 1,501,831.22 1,501,831.22 1,498,748.33 1,496,917.74 1,493,256.77

3130A3J70 FEDERAL HOME LOAN BANKS AGCY BOND 1,000,537.00 0.484 0.489 0.396 1,002,474.53 1,002,474.53 1,002,474.53 998,555.99 996,575.07 992,613.55

3130A5EP0 FEDERAL HOME LOAN BANKS AGCY BOND 1,000,462.00 0.767 0.574 0.913 1,005,705.26 1,005,705.26 1,005,029.27 995,895.05 991,328.43 982,196.17

313313HF8 FEDERAL FARM CREDIT BANKS AGCY DISC 497,273.00 0.583 0.559 0.978 499,991.71 499,991.71 499,704.75 494,841.42 492,410.02 487,547.73

313379FW4 FEDERAL HOME LOAN BANKS AGCY BOND 1,003,905.00 0.741 0.584 0.937 1,009,398.69 1,009,398.69 1,008,608.47 999,201.88 994,499.11 985,094.63

313384ZK8 FEDERAL HOME LOAN BANKS AGCY DISC 499,967.00 0.622 0.158 0.042 500,000.18 500,000.18 500,000.18 499,862.01 499,757.01 499,547.03

3133EFBT3 FEDERAL FARM CREDIT BANKSFUNDING CORP

AGCY BOND 1,000,026.00 0.44 0.404 0.169 1,000,708.79 1,000,708.79 1,000,708.79 999,180.99 998,336.01 996,646.11

3135G0JA2 FEDERAL NATIONAL MORTGAGEASSOCIATION

AGCY BOND 1,004,428.00 0.818 0.586 0.82 1,009,254.67 1,009,254.67 1,008,546.29 1,000,309.98 996,192.24 987,957.59

3135G0PP2 FEDERAL NATIONAL MORTGAGEASSOCIATION

AGCY BOND 1,077,053.41 0.75 0.612 1.211 1,085,036.22 1,085,036.22 1,083,575.25 1,070,532.13 1,064,011.42 1,050,971.70

3137EACW7 FREDDIE MAC AGCY BOND 235,549.67 0.827 0.465 0.152 235,716.15 235,716.15 235,716.15 235,370.65 235,191.64 234,833.64

3137EADF3 FREDDIE MAC AGCY BOND 1,005,751.00 0.817 0.584 0.861 1,010,808.36 1,010,808.36 1,010,080.91 1,001,421.39 997,092.09 988,434.38

3137EADT3 FREDDIE MAC AGCY BOND 1,002,389.00 0.714 0.503 0.641 1,005,621.02 1,005,621.02 1,005,601.74 999,176.43 995,964.04 989,539.78

31680GAB2 FITAT 151 A2A ABS 465,390.27 1.022 0.92 0.353 466,901.73 466,901.73 466,211.70 464,568.87 463,747.51 462,104.89

354613AH4 FRANKLIN RESOURCES INC CORP 502,011.50 1.11 1.039 1.192 508,229.39 507,995.98 505,003.61 499,019.64 496,028.02 490,045.55

41284BAB2 HDMOT 151 A2A ABS 170,957.15 0.799 0.994 0.324 171,507.75 171,507.75 171,234.10 170,680.20 170,403.27 169,849.45

41284DAB8 HDMOT 16A A2 ABS 500,431.65 1.093 1.008 1.026 505,607.59 505,566.50 502,998.97 497,864.54 495,297.65 490,164.49

4197915E4 HAWAII ST MUNI 750,217.50 0.731 0.28 0.09 750,406.56 750,406.56 750,406.56 749,879.91 749,542.34 748,867.26

437076BJ0 HOME DEPOT INC CORP 752,848.50 1.038 1.177 0.209 754,700.56 754,422.03 753,635.25 752,061.79 751,275.12 749,701.89

43814KAB7 HAROT 151 A2 ABS 67,733.36 0.708 0.818 0.094 67,785.44 67,785.44 67,765.19 67,701.53 67,669.69 67,606.03


SOVEREIGNGOV

1,607,737.60 0.813 0.44 0.704 1,612,717.87 1,612,717.87 1,612,717.87 1,602,078.54 1,596,419.85 1,585,103.55

45905U7F5 INTERNATIONAL BK FOR RECON & DEVMEDIUM TERM BK N

SOVEREIGNGOV

999,900.00 0.45 0.638 0.053 1,000,238.11 1,000,238.11 1,000,164.97 999,635.03 999,370.05 998,840.11

45905UQG2 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

SOVEREIGNGOV

600,276.00 0.691 0.431 0.238 600,891.76 600,891.76 600,891.76 599,561.69 598,847.40 597,418.93

45905UTJ3 INTERNATIONAL BANK FORRECONSTRUCTION AND DEVELOP

SOVEREIGNGOV

499,680.50 0.658 1.13 0.249 501,086.51 500,924.75 500,302.61 499,058.41 498,436.35 497,192.29

45950KBS8 INTERNATIONAL FINANCE CORP SOVEREIGNGOV

501,311.00 0.851 0.677 0.811 504,063.56 504,063.56 503,343.89 499,278.25 497,245.64 493,180.84

46623EJY6 JPMORGAN CHASE & CO CORP 501,016.00 1.255 1.023 0.618 504,183.68 504,112.45 502,564.18 499,467.90 497,919.90 494,824.14

Shock Analysis WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

30

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* Weighted By: Base Market Value + Accrued.

*The shock analysis includes a yield floor of 0.

Identifier Description Security Type Base Market Value BookYield

Yield Duration -200 Basis PointShock



50 Basis PointShock



47787WAB5 JDOT 15B A2 ABS 349,113.68 0.982 0.942 0.419 350,491.69 350,491.69 349,845.09 348,382.31 347,650.96 346,188.39

544587B72 LOS ANGELES CALIF MUN IMPT CORPLEASE REV

MUNI 490,965.30 1.26 0.712 0.339 492,150.37 492,150.37 491,797.50 490,133.13 489,301.00 487,636.85

58772PAB4 MBART 151 A2A ABS 447,844.76 1.031 0.819 0.388 449,267.95 449,267.95 448,713.60 446,975.96 446,107.21 444,369.84

605581FW2 MISSISSIPPI ST MUNI 300,258.00 0.64 0.342 0.257 300,521.91 300,521.91 300,521.91 299,872.18 299,486.37 298,714.79

637432HT5 NATIONAL RURAL UTILITIES COOPFINANCE CORP

CORP 516,558.50 1.084 1.158 0.76 521,104.97 520,484.60 518,521.49 514,595.64 512,632.91 508,707.84

65478VAB3 NAROT 16B A2A ABS 701,199.10 1.057 0.877 0.975 707,195.28 707,195.28 704,617.58 697,780.89 694,362.93 687,527.82

68428LDM3 ORANGE CNTY CALIF PENSION OBLIG MUNI 250,240.00 0.938 0.692 0.34 250,828.78 250,828.78 250,665.42 249,814.60 249,389.22 248,538.52

69353RCG1 PNC BANK NA CORP 750,642.00 1.125 0.95 0.528 754,400.78 754,400.78 752,621.91 748,658.52 746,671.48 742,686.70

762494QV7 RIALTO CALIF UNI SCH DIST MUNI 250,790.00 1.258 0.756 0.589 251,906.77 251,906.77 251,528.60 250,051.44 249,312.92 247,835.99

76912TJC8 RIVERSIDE CNTY CALIF PUB FINGAUTH TAX ALLOC REV

MUNI 124,956.25 1.301 1.173 0.174 125,211.30 125,173.68 125,064.96 124,847.54 124,738.83 124,521.43

880591EA6 TENNESSEE VALLEY AUTHORITY AGCY BOND 615,608.82 0.876 0.663 1.008 619,723.16 619,723.16 618,711.61 612,506.27 609,403.95 603,199.99

89116EPA5 Toronto Dominion Holdings (U.S.A.), Inc. CP 745,640.63 1.027 0.957 0.608 749,979.42 749,979.42 747,907.44 743,373.94 741,107.39 736,574.68

89233GKT2 Toyota Motor Credit Corporation CP 498,843.05 0.763 0.714 0.324 499,997.10 499,997.10 499,651.20 498,034.95 497,226.88 495,610.85

89236WAB4 TAOT 15A A2 ABS 161,028.73 0.712 0.828 0.115 161,182.06 161,182.06 161,121.32 160,936.14 160,843.55 160,658.39

90290XAB3 USAOT 151 A2 ABS 298,688.14 0.822 1.019 0.258 299,473.43 299,458.78 299,073.45 298,302.84 297,917.55 297,147.03

90331HMR1 US BANK NA CORP 748,602.00 0.889 1.329 0.065 749,248.68 749,088.59 748,845.30 748,358.70 748,115.41 747,628.82

912828D49 UNITED STATES TREASURY US GOV 230,853.53 0.77 0.544 1.115 232,253.86 232,253.86 232,140.59 229,566.57 228,279.72 225,706.33

912828QX1 UNITED STATES TREASURY US GOV 1,001,079.00 0.434 0.231 0.083 1,001,270.94 1,001,270.94 1,001,270.94 1,000,663.56 1,000,248.15 999,417.41

912828RF9 UNITED STATES TREASURY US GOV 2,002,316.00 0.505 0.311 0.166 2,003,349.73 2,003,349.73 2,003,349.73 2,000,654.10 1,998,992.26 1,995,668.71

912828SY7 UNITED STATES TREASURY US GOV 500,449.00 0.73 0.527 0.913 502,857.01 502,857.01 502,733.63 498,164.53 495,880.23 491,312.10

912828TS9 UNITED STATES TREASURY US GOV 1,000,938.00 0.631 0.55 1.242 1,007,775.74 1,007,775.74 1,007,154.10 994,722.45 988,507.45 976,079.10

912828VL1 UNITED STATES TREASURY US GOV 1,000,167.00 0.356 0.219 0.042 1,000,259.00 1,000,259.00 1,000,259.00 999,956.96 999,746.93 999,326.86

91412GEZ4 UNIVERSITY CALIF REVS MUNI 300,045.00 0.969 0.56 0.00 300,045.00 300,045.00 300,045.00 300,045.00 300,045.00 300,045.00

949917397 WellsFargo:Htge MM;I MMFUND 1,043,363.57 0.00 0.00 0.00 1,043,363.57 1,043,363.57 1,043,363.57 1,043,363.57 1,043,363.57 1,043,363.57

CCYUSD Receivable CASH 354.80 0.00 0.00 0.00 354.80 354.80 354.80 354.80 354.80 354.80

CCYUSD Cash CASH 804.18 0.00 0.00 0.00 804.18 804.18 804.18 804.18 804.18 804.18

--- --- --- 44,297,164.07 0.80 0.701 0.486 44,452,499.39 44,449,675.43 44,401,868.93 44,189,573.80 44,081,984.85 43,866,810.84

Shock Analysis WC-Contra Costa County (19529)Base Currency: USD As of 06/30/2016 Return to Table of Contents Dated: 07/06/2016

31

Page 72

The information contained in this report represents estimated trade date investment calculations provided via Clearwater Analytics for Wells Capital Management clients. Certain calculations may not be available for all timeperiods. Please refer to your custody statement for official portfolio holdings and transactions. Note that certain accounting methods may cause differences between this investment report and your custody statement.

DisclaimerReturn to Table of Contents Dated: 07/06/2016

32

Page 73

Caltrust Short Term FundMONTH END PORTFOLIO STATISTICS

June 30, 2016

CalTrust

Short Term

LAIF

Market Value N/A$1,180,461,242.64

NAV per Share N/A$10.03

Yield 0.58%0.73%

Period Total Return N/A0.14%

Period Yield Return 0.05%0.06%

Effective Duration N/A0.51 yrs.

Average Maturity 0.44 yrs.1.06 yrs.

CalTrust

Short Term

Total Return

CalTrust

Short Term

Yield Return

LAIF Yield

Return

0.14% 0.05%0.06%One Month

0.28% 0.14%0.18%Three Month

0.55% 0.25%0.34%Six Month

0.67% 0.43%0.60%One Year*

0.51% 0.35%0.51%Two Year*

0.53% 0.32%0.47%Three Year*

0.46% 0.33%0.45%Five Year*

1.53% 1.45%1.49%Ten Year*

1.81% 1.71%1.77%Since Inception*

*Annualized

US Govt Agency 34.9%Corporate 28.9%MBS/ABS 11.1%SupraNational 10.1%Muni 9.5%MONEYMKT 3.7%COMPAPER 1.8%

Total: 100.0%

Portfolio Sector Breakdown

AA+ 32.0%AAA 25.0%A 14.3%AA- 7.9%A-1+ 6.7%AA 6.1%A+ 4.8%A- 3.3%

Total: 100.0%

Portfolio Quality Breakdown

Disclosure to Performance Information

This performance information is based on an inception date of February 13, 2005, when the CalTrust Short-Term portfolio commenced investment operations according to its investment objective , and does not include any investment returns

from temporary investments held before the commencement of those operations.

First-month index returns, February 13-28, 2005, are intra-period and were calculated by calculating the average daily return during the month and multiplying the average daily return by number of days in the shortened period.

Performance was calculated net of investment advisory and program administration fees.

The Local Agency Investment Fund (LAIF) is a diversified portfolio managed by the State of California for local governments and special districts.

Performance for the CalTRUST Short Term Account is on a trade date basis . LAIF's monthly performance was calculated by taking the average monthly effective yield and dividing it by 365 then multiplying the result by the number of days in

the month.

Yield represents the 7-day net distribution on investments for the period.

Rating source - Standard & Poor's.

Past performance is no guarantee of future results.

Page 75

<<Back CalTrust Short Term Fund View Export Print HomeSearch Complete Listing Additional Ratings Effective Date: 6/30/2016 Go

Ticker CUSIP Description S&P Rating6/30/2016* Mat. Date Years Shares Price Value

AE120817 00817YAR9 AETNA INC 12/8/2017 1.335522% A- 12/8/2017 1.5 4,700,000.00 100.1455 $4,706,838.50AX072916 0258M0DG1 AMERICAN EXPRESS CRE DIT 7/29/2016 1.3% A- 7/29/2016 0.1 959,000.00 100.0346 $959,331.81AH121117 02665WAR2 AMERICAN HONDA FINAN CE 12/11/2017 0.545 A+ 12/11/2017 1.5 8,000,000.00 100.0720 $8,005,760.00HN092017 02665WAY7 AMERICAN HONDA FINAN CE 9/20/2017 0.7626 A+ 9/20/2017 1.2 3,800,000.00 100.1805 $3,806,859.00AA050517 037833AM2 APPLE INC. 05/05/17 AA+ 5/5/2017 0.9 8,547,000.00 100.2356 $8,567,136.73BA061520 05522RCT3 BA CREDIT CARD TRUST 06/15/20 AAA 6/15/2020 4.0 10,000,000.00 100.1154 $10,011,540.00BA021417 06050TLU4 BANK OF AMERICA NA 2/14/2017 0.7061% A 2/14/2017 0.7 1,720,000.00 100.1391 $1,722,392.52BA032618 06050TLY6 BANK OF AMERICA NA 3/26/2018 1.65% A 3/26/2018 1.8 7,463,000.00 100.5998 $7,507,763.07BN021417 06050TLT7 BANK OF AMERICA NA 2/14/2017 1.25% A 2/14/2017 0.7 5,000,000.00 100.1495 $5,007,475.00BO111416 06050TLR1 BANK OF AMERICA NA 11/14/2016 1.125% A 11/14/2016 0.4 4,000,000.00 100.0602 $4,002,408.00BN072816 06406HBX6 BANK OF NEW YORK MELLON 2.3% 7/28/16 A 7/28/2016 0.1 3,947,000.00 100.0987 $3,950,895.69BK011717 06406HCA5 BANK OF NEW YORK MEL LON CORPORA 01/17/17 A 1/17/2017 0.6 7,000,000.00 100.6922 $7,048,454.00BA052218 06406HDC0 BANK OF NY MELLON 5/22/18 VARIABLE A 5/22/2018 1.9 5,000,000.00 99.9829 $4,999,145.00BB100117 07330NAK1 BB&T CORPORATION 10/01/17 A 10/1/2017 1.3 2,500,000.00 100.2554 $2,506,385.00BR011218 084664CD1 BERKSHIRE HATHAWAY F IN 1/12/2018 0.5533 AA 1/12/2018 1.6 2,750,000.00 100.0339 $2,750,932.25BR030718 084664CF6 BERKSHIRE HATHAWAY F IN 3/7/2018 1.16398 AA 3/7/2018 1.8 13,000,000.00 100.5110 $13,066,430.00AU012218 05581RAC0 BMWLT 2016-1 A2B 1/22/2018 0.92925% AAA 1/22/2018 1.6 10,000,000.00 100.2027 $10,020,270.00BA112016 097023BC8 BOEING CO 11/20/2016 3.75% A 11/20/2016 0.4 2,750,000.00 101.1156 $2,780,679.00BB040317 07330NAH8 BRANCH BANKING & TRU ST 4/3/2017 1% A 4/3/2017 0.8 1,100,000.00 100.0203 $1,100,223.30BB050119 07330NAM7 BRANCH BANKING & TRU ST 5/1/2019 A 5/1/2019 2.9 8,000,000.00 100.0255 $8,002,040.00BB091316 10513KAB0 BRANCH BANKING & TRU ST 9/13/2016 0.5899 A- 9/13/2016 0.2 2,000,000.00 100.0390 $2,000,780.00BB100316 07330NAC9 BRANCH BANKING & TRU ST 10/3/2016 1.45% A 10/3/2016 0.3 800,000.00 100.0837 $800,669.60BB120116 07330NAF2 BRANCH BANKING & TRU ST 12/1/2016 0.6743 A 12/1/2016 0.5 3,000,000.00 100.0911 $3,002,733.00CA020117 13034PYA9 CA HSG FIN AGGY-A 2/1/2017 1% AA- 2/1/2017 0.7 3,460,000.00 99.9890 $3,459,619.40CA080117 13034PYB7 CA HSG FIN AGGY-A 8/1/2017 1.35% AA- 8/1/2017 1.2 3,965,000.00 99.9790 $3,964,167.35UN070141 91412GFA8 CA UNI-FLTG-TXB-Y-2 7/1/2041 0.656% AA 7/1/2017 1.1 4,250,000.00 100.0100 $4,250,425.00CF120116 13067WJG8 CALIFORNIA ST DEPT W TR RES 12/01/16 AAA 12/1/2016 0.5 1,235,000.00 100.1450 $1,236,790.75CL120116 13067WHU9 CALIFORNIA ST DEPT W TR RES 12/01/16 AAA 12/1/2016 0.5 15,000.00 100.1490 $15,022.35CA030317 14912L6H9 CATERPILLAR FINANCIA L SE 3/3/2017 0.562 A 3/3/2017 0.8 5,000,000.00 100.0590 $5,002,950.00CA081516 149123BM2 CATERPILLAR INC 08/15/16 A 8/15/2016 0.2 1,549,000.00 100.5462 $1,557,460.64Cr090718 17305EFE0 CCCIT 2013-A6 A6 9/7/2018 1.32% AAA 9/7/2018 2.2 15,500,000.00 100.0928 $15,514,384.00Cr011519 161571GJ7 CHAIT 2014-A1 A1 1/15/2019 1.15% AAA 1/15/2019 2.6 13,000,000.00 100.2002 $13,026,026.00CC030218 166764AW0 CHEVRON CORP 3/2/2018 0.432967% AA- 3/2/2018 1.8 4,000,000.00 99.6399 $3,985,596.00CV051618 166764BE9 CHEVRON CORP 5/16/2018 1.1296% AA- 5/16/2018 1.9 5,700,000.00 100.1052 $5,705,996.40CH111517 166764AK6 CHEVRON CORPORATION 11/15/17 AA- 11/15/2017 1.4 2,500,000.00 99.7640 $2,494,100.00CI061518 17275RAY8 CISCO SYSTEMS INC 06/15/2018 AA- 6/15/2018 2.0 4,500,000.00 100.1488 $4,506,696.00C042718 172967JQ5 CITIGROUP INC 4/27/2018 0.967% A 4/27/2018 1.8 5,000,000.00 99.9303 $4,996,515.00C060719 172967KT7 CITIGROUP INC 6/7/2019 1.6113% A 6/7/2019 3.0 2,000,000.00 100.1640 $2,003,280.00C120718 172967KF7 CITIGROUP INC. 12/07/18 A 12/7/2018 2.5 3,000,000.00 100.0001 $3,000,003.00CR042718 22546QAW7 CREDIT SUISSE NEW YO RK 4/27/2018 0.9574 A 4/27/2018 1.8 5,500,000.00 99.9205 $5,495,627.50XO022818 30231GAS1 EXXON MOBIL CORPORAT ION 2/28/2018 1.231 AA+ 2/28/2018 1.7 7,460,000.00 100.7440 $7,515,502.40FN031417 3135G0VM2 FANNIE MAE 3/14/2017 0.75% AA+ 3/14/2017 0.8 3,500,000.00 100.1463 $3,505,120.50FF062317 313313HF8 FEDERAL FARM CREDIT BANKS 06/23/17 A-1+ 6/23/2017 1.0 15,500,000.00 99.4546 $15,415,463.00FF080818 3133EFYG6 FEDERAL FARM CREDIT BANK 8/8/2018 0.617 AA+ 8/8/2018 2.2 10,000,000.00 100.0319 $10,003,190.00FF091317 3133EGEP6 FEDERAL FARM CREDIT BANKS 09/13/17 AA+ 9/13/2017 1.2 15,000,000.00 100.1570 $15,023,550.00FF091718 3133EFM61 FEDERAL FARM CREDIT BANK 9/17/2018 0.66 AA+ 9/17/2018 2.2 10,000,000.00 100.1099 $10,010,990.00FF112316 3133EEUS7 FEDERAL FARM CREDIT BANK 11/23/2016 0.6 AA+ 11/23/2016 0.4 21,000,000.00 100.0650 $21,013,650.00ma011317 3133EFJK4 FEDERAL FARM CREDIT BANKS 01/13/17 AA+ 1/13/2017 0.6 10,000,000.00 99.9573 $9,995,730.00FH060917 313379FW4 FEDERAL HOME LOAN 1.00 6/9/2017 AA+ 6/9/2017 1.0 23,400,000.00 100.3905 $23,491,377.00FH090817 313370SZ2 FEDERAL HOME LOAN BANK 2.25% 9/8/2017 AA+ 9/8/2017 1.2 20,000,000.00 101.8727 $20,374,540.00FH040618 3130A7LX1 FEDERAL HOME LOAN BA NKS 04/06/18 AA+ 4/6/2018 1.8 8,100,000.00 100.1636 $8,113,251.60FH042417 313385ET9 FEDERAL HOME LOAN BA NKS 04/24/17 A-1+ 4/24/2017 0.8 30,000,000.00 99.5875 $29,876,250.00FH053017 3130A5EP0 FEDERAL HOME LOAN BA NKS 05/30/17 AA+ 5/30/2017 0.9 20,000,000.00 100.0462 $20,009,240.00FL092816 3130A2T97 FEDERAL HOME LOAN BA NK 9/28/2016 0.5% AA+ 9/28/2016 0.2 7,000,000.00 100.0386 $7,002,702.00FL112316 3130A3J70 FEDERAL HOME LOAN BA NK 11/23/2016 0.625 AA+ 11/23/2016 0.4 30,000,000.00 100.0537 $30,016,110.00FM022618 3134G8L98 FEDERAL HOME LOAN MO RTGAGE CORP 02/26/18 AA+ 2/26/2018 1.7 10,000,000.00 100.0246 $10,002,460.00FM041118 3134G8UD9 FEDERAL HOME LOAN MO RTGAGE CORP 04/11/18 AA+ 4/11/2018 1.8 10,000,000.00 100.2452 $10,024,520.00FM091518 31394JTT4 FEDERAL HOME LOAN MO RTGAGE CORP 09/15/18 AA+ 9/15/2018 2.2 1,892,892.06 103.3747 $1,956,771.49FM112417 3134G8ML0 FEDERAL HOME LOAN MO RTGAGE CORP 11/24/17 AA+ 11/24/2017 1.4 1,100,000.00 100.0137 $1,100,150.70FN013018 3135G0B77 FEDERAL NATIONAL MOR TGAGE ASSOC 01/30/18 AA+ 1/30/2018 1.6 6,000,000.00 100.8860 $6,053,160.00FN042717 3135G0JA2 FEDERAL NATIONAL MOR TGAGE ASSOC 04/27/17 AA+ 4/27/2017 0.8 2,000,000.00 100.4428 $2,008,856.00FN051517 3135G0WU3 FEDERAL NATIONAL MOR TGAGE ASSOC 05/15/17 AA+ 5/15/2017 0.9 4,000,000.00 100.0187 $4,000,748.00FN060117 31359MEL3 FEDERAL NATL MTG 06/01/17 AA+ 6/1/2017 1.0 13,506,000.00 99.4381 $13,430,109.79FB111816 31677QAZ2 FIFTH THIRD BANK 11/18/2016 0.7481% A- 11/18/2016 0.4 8,360,000.00 100.0746 $8,366,236.56Au051518 31680GAB2 FITAT 2015-1 A2A MTGE 1.02% 05/15/18 Aaa 5/15/2018 1.9 9,676,632.99 100.0360 $9,680,116.58BE091517 354613AH4 FRANKLIN RESOURCES I NC. 09/15/17 AA- 9/15/2017 1.2 1,750,000.00 100.4023 $1,757,040.25FM082516 3137EACW7 FREDDIE MAC 2.0 08/25/2016 AA+ 8/25/2016 0.2 15,000,000.00 100.2339 $15,035,085.00FM092616 3134G4XW3 FREDDIE MAC 9/26/2016 0.6% AA+ 9/26/2016 0.2 2,500,000.00 100.0923 $2,502,307.50FR052617 3134G6R70 FREDDIE MAC 0.75% 05/26/2017 AA+ 5/26/2017 0.9 5,000,000.00 100.2304 $5,011,520.00GE010917 36962G5N0 GENERAL ELEC CAP CORP 2.9% 1/9/2017 AA+ 1/9/2017 0.6 3,000,000.00 101.1007 $3,033,021.00

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GE080718 36962GX66 GENERAL ELECTRIC COM PANY 08/07/18 AA+ 8/7/2018 2.2 2,023,000.00 99.8495 $2,019,955.39GS042519 38141GVV3 GOLDMAN SACHS GROUP INC 4/25/2019 1.674 A 4/25/2019 2.8 3,000,000.00 99.7743 $2,993,229.00GS121517 38141EC49 GOLDMAN SACHS GROUP INC. 12/15/17 A 12/15/2017 1.5 6,000,000.00 99.8940 $5,993,640.00HD011519 41284CAB0 HARLEY-DAVIDSON 0.8% 01/15/19 AAA 1/15/2019 2.6 2,541,188.63 99.9796 $2,540,670.23Au122117 43813JAC9 HAROT 2014-1 A3 12/21/2017 0.67% AAA 11/21/2017 1.4 1,932,143.78 99.9681 $1,931,527.42Au071717 43814KAB7 HAROT 2015-1 A2 7/17/2017 0.7% AAA 6/15/2017 1.0 1,099,019.15 99.9890 $1,098,898.26HI080116 4197915E4 HAWAII-TXBL-REF-ES 8/1/2016 0.731% 8/1/2016 0.2 14,250,000.00 100.0120 $14,251,710.00Au071618 41283YAC1 HDMOT 2013-1 A3 7/16/2018 0.65% Aaa 7/16/2018 2.1 78,426.65 99.9902 $78,418.97Au011519 41284BAB2 HDMOT 2015-1 A2A 1/15/2019 0.95% AAA 1/15/2019 2.6 4,413,456.29 99.9374 $4,410,693.46HM061719 41284DAB8 HDMOT 2016-A A2 6/17/2019 1.09% AAA 6/17/2019 3.0 6,100,000.00 100.0863 $6,105,264.30HA072318 43814LAB5 HONDA AUTO RECEIV- ABLES 07/23/18 AAA 7/23/2018 2.1 2,091,949.84 99.9690 $2,091,301.34HA082117 43813NAB2 HONDA AUTO RECEIV- ABLES 08/21/2017 AAA 8/21/2017 1.2 900,433.31 99.9740 $900,199.20HB080718 40428HPW6 HSBC USA INC 8/7/2018 1.0809% A 8/7/2018 2.2 2,000,000.00 99.4742 $1,989,484.00HB111317 40428HPM8 HSBC USA INC 11/13/2017 0.57185% A 11/13/2017 1.4 7,955,000.00 99.5499 $7,919,194.55HB062317 40434CAB1 HSBC USA INC. 06/23/17 A 6/23/2017 1.0 4,000,000.00 99.7100 $3,988,400.00HS011618 40428HPH9 HSBC USA INC. 01/16/18 A 1/16/2018 1.6 2,000,000.00 99.8218 $1,996,436.00IB072216 459200GX3 IBM CORP 7/22/2016 1.95% AA- 7/22/2016 0.1 12,450,000.00 100.0587 $12,457,308.15ID010117 45656TAQ1 INDUSTRY PUB FACS-A 1/1/2017 1.764% AA 1/1/2017 0.6 7,700,000.00 100.3540 $7,727,258.00IA031517 4581X0BV9 INTER-AMERICAN DEVEL OPMENT BANK 03/15/17 AAA 3/15/2017 0.8 19,000,000.00 100.4836 $19,091,884.00IA101816 4581X0BS6 INTER-AMERICAN DEVEL BK 10/18/2016 1.375 Aaa 10/18/2016 0.3 15,000,000.00 100.2446 $15,036,690.00IN070116 45884AZN6 INTERMOUNTAIN PWR-B 7/1/2016 0.785% A+ 7/1/2016 0.1 6,000,000.00 100.0000 $6,000,000.00IB090116 459056JS7 INTERNATIONAL BANK F OR RECONSTR 09/01/16 AAA 9/1/2016 0.2 5,729,000.00 101.3503 $5,806,358.69IB092616 45905UQG2 INTERNATIONAL BANK F OR RECONSTR 09/26/16 AAA 9/26/2016 0.2 7,500,000.00 100.0460 $7,503,450.00IB101516 459056JT5 INTERNATIONAL BANK F OR RECONSTR 10/15/16 AAA 10/15/2016 0.3 1,000,000.00 102.0200 $1,020,200.00IF042417 45950KBS8 INTERNATIONAL FINANC E CORPORATI 04/24/17 AAA 4/24/2017 0.8 16,578,000.00 100.2622 $16,621,467.52KO112316 45950KBQ2 INTERNATIONAL FINANC E CORPORATI 11/23/16 AAA 11/23/2016 0.4 10,000,000.00 100.1990 $10,019,900.00IB071916 45905U7F5 INTL BK RECON & DEVE LOP 07/19/2016 0.45% AAA 7/19/2016 0.1 500,000.00 99.9970 $499,985.00IB091516 459058BS1 INTL BK RECON & DEVE LOP 9/15/2016 1% AAA 9/15/2016 0.2 15,000,000.00 100.1280 $15,019,200.00IB101416 459058DS9 INTL BK RECON & DEVE LOP 10/14/2016 0.62 AAA 10/14/2016 0.3 10,000,000.00 100.0581 $10,005,810.00IB121617 45905UVJ0 INTL BK RECON & DEVE LOP 12/16/2017 0.77 Aaa 12/16/2017 1.5 10,000,000.00 100.1218 $10,012,180.00IF010919 45950VHC3 INTL FINANCE CORP 1/9/2019 0.67685% Aaa 1/9/2019 2.6 10,000,000.00 99.9487 $9,994,870.00Ot021518 47787UAB9 JDOT 2015-A A2A 2/15/2018 0.87% AAA 2/15/2018 1.7 3,398,382.52 99.9920 $3,398,110.65Ot061518 47787WAB5 JDOT 2015-B A2 06/15/2018 0.98% Aaa 6/15/2018 2.0 3,926,867.24 100.0168 $3,927,526.95OT101518 47788MAB6 JDOT 2016-A A2 10/15/2018 1.15% AAA 10/15/2018 2.3 3,900,000.00 100.0930 $3,903,627.00DC011618 24422ESU4 JOHN DEERE CAPITAL C ORP 1/16/2018 0.543 A 1/16/2018 1.6 7,165,000.00 100.1028 $7,172,365.62JP100117 48121CYK6 JP MORGAN CHASE BANK NA 10/1/2017 6% A- 10/1/2017 1.3 1,398,000.00 105.6211 $1,476,582.98JM032219 46625HQV5 JPMORGAN CHASE & CO 3/22/2019 A- 3/22/2019 2.8 5,000,000.00 100.2675 $5,013,375.00JP021517 46623EJZ3 JPMORGAN CHASE & CO 2/15/2017 0.750933% A- 2/15/2017 0.7 1,500,000.00 100.1091 $1,501,636.50JP012518 46625HJG6 JPMORGAN CHASE & CO. 01/25/18 A- 1/25/2018 1.6 7,000,000.00 100.7902 $7,055,314.00JP061417 48125LRD6 JPMORGAN CHASE BANK NATIONAL A 06/14/17 A+ 6/14/2017 1.0 1,500,000.00 99.9318 $1,498,977.00KE112516 49327M2E3 KEY BANK NA 11/25/2016 0.7516% A- 11/25/2016 0.4 8,000,000.00 100.0367 $8,002,936.00LD080116 54465AFK3 LA CO REDEV-B-TXBL 8/1/2016 1.074% AA- 8/1/2016 0.2 5,735,000.00 100.0020 $5,735,114.70LO110116 544587B72 LOS ANGELES CALIF MU N IMPT CORP 11/01/16 A+ 11/1/2016 0.4 10,965,000.00 100.1720 $10,983,859.80LA070116 5446462D3 LOS ANGELES SD-L-TXB L 7/1/2016 0.68% AA- 7/1/2016 0.1 1,000,000.00 100.0000 $1,000,000.00MA090116 562785LC7 MANHATTAN BEACH CA .856% 9/1/16 AA 9/1/2016 0.2 1,405,000.00 100.0550 $1,405,772.75MA072517 55279HAH3 MANUF & TRADERS TRUS T CO 7/25/2017 0.53 A 7/25/2017 1.1 10,000,000.00 99.8263 $9,982,630.00MT013017 55279HAD2 MANUF & TRADERS TRUS T CO 1/30/2017 1.25 A 1/30/2017 0.6 2,000,000.00 100.0146 $2,000,292.00Au081517 58768LAD5 MBALT 2015-A A3 8/15/2017 1.1% AAA 8/15/2017 1.2 2,230,989.65 100.0517 $2,232,143.07Au011618 58769AAB2 MBALT 2015-B A2A 1% 01/16/18 AAA 1/16/2018 1.6 8,965,150.06 100.0294 $8,967,785.82MB061518 58772PAB4 MERCEDES BENZ AUTO R ECEIVABLES 06/15/18 AAA 6/15/2018 2.0 1,412,421.47 100.0008 $1,412,432.77MI100116 605581FW2 MISSISSIPPI ST-B-TXB L 10/1/2016 0.64% AA 10/1/2016 0.3 2,780,000.00 100.0070 $2,780,194.60MS100116 605581EP8 MISSISSIPPI ST-D-REF 10/1/2016 0.64% AA 10/1/2016 0.3 2,520,000.00 100.0090 $2,520,226.80MO010518 61761JVN6 MORGAN STANLEY 1/5/2018 1.007098% A 1/5/2018 1.6 7,938,000.00 100.0737 $7,943,850.31MO020119 61746BDY9 MORGAN STANLEY 2/1/2019 2.007761% A 2/1/2019 2.7 3,500,000.00 101.1220 $3,539,270.00Au041717 65490BAB1 NALT 2014-B A2A 4/17/2017 0.73% AAA 4/17/2017 0.8 1,470,935.28 99.9752 $1,470,570.49Au091517 65477UAB6 NAROT 2015-A A2 9/15/2017 0.67% AAA 9/15/2017 1.2 1,629,405.57 99.9794 $1,629,069.91NA021519 65478UAC3 NAROT 2016-A A2B 2/15/2019 0.777% AAA 2/15/2019 2.7 5,000,000.00 100.1225 $5,006,125.00AU041519 65478VAB3 NAROT 2016-B A2A 4/15/2019 1.05% A 4/15/2019 2.8 4,000,000.00 100.1713 $4,006,852.00NR041017 637432HT5 NATIONAL RURAL UTILI TIES COOPER 04/10/17 A 4/10/2017 0.8 8,880,000.00 103.3117 $9,174,078.96NR042417 63743HEM0 NATIONAL RURAL UTILI TIES COOPER 04/24/17 A 4/24/2017 0.8 5,000,000.00 100.0108 $5,000,540.00NY021517 64990EJ32 NEW YORK ST DORM AUT 2/15/17 .93% AAA 2/15/2017 0.7 3,685,000.00 100.2850 $3,695,502.25OC081516 675371AS7 OCEANSIDE PENSION-RE F 8/15/2016 1.406% AA 8/15/2016 0.2 750,000.00 100.0440 $750,330.00OR110116 68428LDM3 ORANGE CNTY CALIF 11/01/16 AA 11/1/2016 0.4 7,700,000.00 100.0740 $7,705,698.00OP031717 690353M20 OVERSEAS PRIVATE INV COR 3/17/2017 1.01% A-1+ 3/17/2017 0.8 3,000,000.00 100.1893 $3,005,679.00OP033017 690353N29 OVERSEAS PRIVATE INV COR 3/30/2017 0% A-1+ 3/30/2017 0.8 10,000,000.00 100.2003 $10,020,030.00PB060118 69353REN4 PNC BANK NA 06/01/2018 A 6/1/2018 2.0 3,000,000.00 99.8559 $2,995,677.00PN012717 69353RCG1 PNC BANK NA 1/27/2017 1.125% A 1/27/2017 0.6 12,735,000.00 100.0856 $12,745,901.16PN110116 69349LAP3 PNC BANK NA 11/1/2016 1.15% A 11/1/2016 0.4 1,060,000.00 100.0356 $1,060,377.36PO121516 738798BD8 POWAY REDEV AGY-B 12/15/2016 1.1% AA- 12/15/2016 0.5 3,545,000.00 100.0870 $3,548,084.15RI020117 762494QV7 RIALTO USD-TXBL 2/1/2017 1.258% AA 2/1/2017 0.7 800,000.00 100.3310 $802,648.00RI090116 76912TJC8 RIVERSIDE PUB FIN-RE F 9/1/2016 1% A 9/1/2016 0.2 2,090,000.00 100.0070 $2,090,146.30SD070116 7973552R4 SAN DIEGO CALIF UNI SCH DIST 07/01/16 AA- 7/1/2016 0.1 10,000,000.00 100.0000 $10,000,000.00SA100116 79876CAV0 SAN MARCOS CA REDEV 1.09% 10/1/16 AA- 10/1/2016 0.3 5,125,000.00 100.0770 $5,128,946.25Au081417 78448MAB3 SMAT 2015-1US A2A 8/14/2017 0.99% AAA 8/14/2017 1.2 1,157,422.80 99.8942 $1,156,198.25AT071717 89236WAB4 TAOT 2015-A A2 7/17/2017 0.71% AAA 7/17/2017 1.1 1,798,396.91 99.9865 $1,798,154.12Au021518 89231TAB6 TAOT 2015-C A2A 2/15/2018 0.93% AAA 2/15/2018 1.7 4,174,851.10 100.0386 $4,176,462.59KO102717 191216BR0 THE COCA-COLA COMPAN Y 10/27/17 AA- 10/27/2017 1.3 1,500,000.00 100.1327 $1,501,990.50TD021017 89116EPA5 TORONTO DOMINION HLDGS CP 02/10/17 A-1+ 2/10/2017 0.7 21,000,000.00 99.4188 $20,877,948.00TO011218 89236TCB9 TOYOTA MOTOR CREDIT CORP 1/12/2018 0.57 AA- 1/12/2018 1.6 13,000,000.00 99.9264 $12,990,432.00TO091516 89233P5E2 TOYOTA MOTOR CREDIT CORP 9/15/2016 2% AA- 9/15/2016 0.2 895,000.00 100.2425 $897,170.38UB092616 90521APH5 UNION BANK NA 9/26/2016 1.5% A+ 9/26/2016 0.2 9,330,000.00 100.1118 $9,340,430.94UN092616 90521APG7 UNION BANK NA 9/26/2016 0.9996% A+ 9/26/2016 0.2 2,515,000.00 100.1225 $2,518,080.88MT061617 90520EAE1 UNION BANK OF CALIFO RNIA NATION 06/16/17 A+ 6/16/2017 1.0 3,545,000.00 100.9221 $3,577,688.45N123117 912828UE8 UNITED STATES TREASU RY NOTES 12/31/17 AA+ 12/31/2017 1.5 20,000,000.00 100.2617 $20,052,340.00

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T013118 912828P20 UNITED STATES TREASU RY NOTES 01/31/18 AA+ 1/31/2018 1.6 20,000,000.00 100.2695 $20,053,900.00T043017 912828SS0 UNITED STATES TREASU RY NOTES 04/30/17 AA+ 4/30/2017 0.8 10,000,000.00 100.3038 $10,030,380.00T123117 912828N55 UNITED STATES TREASU RY NOTES 12/31/17 AA+ 12/31/2017 1.5 35,000,000.00 100.6250 $35,218,750.00TN113016 912828MA5 UNITED STATES TREASU RY NOTES 11/30/16 AA+ 11/30/2016 0.4 10,000,000.00 100.9883 $10,098,830.00

AA 7/1/2017 1.1 14,380,000.00 100.0100 $14,381,438.00A+ 11/15/2016 0.4 1,365,000.00 100.3547 $1,369,841.66AA- 1/30/2017 0.6 3,100,000.00 100.0488 $3,101,512.80AA- 1/26/2018 1.6 11,500,000.00 99.8136 $11,478,564.00AA+ 8/31/2016 0.2 14,500,000.00 100.1158 $14,516,791.00AAA 12/15/2017 1.5 425,074.07 99.9544 $424,880.23AAA 3/15/2018 1.8 7,116,134.73 99.9491 $7,112,512.62AAA 4/20/2018 1.8 2,250,079.82 99.8518 $2,246,745.20A 6/9/2017 1.0 1,000,000.00 100.0527 $1,000,527.00A 9/15/2016 0.2 1,925,000.00 100.2567 $1,929,941.48A+ 12/14/2017 1.5 10,000,000.00 100.6210 $10,062,100.00AAA 4/20/2017 0.8 1,312,822.62 99.9924 $1,312,722.84AAA 6/20/2017 1.0 758,792.69 99.9664 $758,537.73

UC070141 91412GEZ4 UNIVERSITY CALIF REVS 07/01/2041** US111516 91159HHB9 US BANCORP 11/15/2016 2.2%UB013017 90331HMC4 US BANK NA CINCINNAT I 1/30/2017 1.1%US012618 90331HMR1 US BANK NA CINCINNAT I 1/26/2018 0.55572 T083116 912828RF9 US TREASURY N/B 8/31/2016 1%Au121517 90290KAC9 USAOT 2014-1 A3 12/15/2017 0.58%Au031518 90290XAB3 USAOT 2015-1 A2 3/15/2018 0.82%Au042018 92867PAC7 VALET 2013-2 A3 4/20/2018 0.7%VZ060917 92343VCD4 VERIZON COMMUNICATIO NS 6/9/2017 0.6306%VZ091516 92343VBL7 VERIZON COMMUNICATIO NS 9/15/2016 1.7823 V121417 92826CAA0 VISA INC 12/14/2017 1.2%Au042017 92867QAD3 VWALT 2014-A A3 4/20/2017 0.8%Au062017 92867VAB6 VWALT 2015-A A2A 6/20/2017 0.87%VPWF3801 VP7000236 WELLS FARGO ADVANT- AGE HERITAGE AAA 7/1/2016 0.1 44,240,838.13 100.0000 $44,240,838.13

Grand Total $1,190,512,142.63* Security ratings are updated monthly at month-end.

**Mandatory put on 7/1/17

Page 78

SECTION III

APPENDIX



B. 3. EAST BAY REGIONAL

COMMUNICATIONS SYSTEM AUTHORITY (EBRCS)

EBRCS TRANSACTIONS*For the Quarter Ending

June 30, 2016

FY 2015-2016

FUND BALANCE @ TJ/Date TJ/Date TJ/Date TJ/Date TJ/Date TJ/Date BALANCE @

NUMBER 03/31/16 06/30/16

100300 2,232,756.90 2,232,756.90

TOTALS 2,232,756.90 0.00 0.00 0.00 0.00 0.00 0.00 2,232,756.90

* East Bay Regional Communications System Authority

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