Election of 2008 General Obligation Bonds

NEW ISSUE — FULL BOOK-ENTRY RATING: Moody’s: “Aa1” See “MISCELLANEOUS – Rating” herein In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California (“Bond Counsel”), under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax. See “TAX MATTERS” herein with respect to tax consequences relating to the Bonds.

$13,676,446.85 ACALANES UNION HIGH SCHOOL DISTRICT (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C Dated: Date of Delivery Due: August 1, as shown on inside cover This cover contains certain information for general reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Capitalized terms used on this cover not otherwise defined shall have the meanings set forth herein.

The Acalanes Union High School District (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C (the “Bonds”) were authorized at an election of the registered voters of the Acalanes Union High School District (the “District”) held on November 4, 2008 (the “2008 Authorization”), at which the requisite 55% or more of the persons voting on the proposition voted to authorize the issuance and sale of $93,000,000 aggregate principal amount of general obligation bonds of the District. The Bonds are being issued to (i) pay the District’s 2014 General Obligation Bond Anticipation Notes (the “2014 Notes”) and (ii) pay the costs of issuing the Bonds. The 2014 Notes were issued to finance the repair, upgrading, acquisition, construction and equipping of certain District property and facilities, in anticipation of the issuance of bonds under the 2008 Authorization.

The Bonds are general obligations of the District payable solely from ad valorem property taxes. The Board of Supervisors of Contra Costa County is empowered and obligated to annually levy ad valorem taxes upon all property subject to taxation by the District, without limitation as to rate or amount (except certain personal property which is taxable at limited rates), for the payment of Accreted Value of the Bonds when due.

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 of the Bonds (the “Beneficial Owners”) will not receive certificates representing their interest in the Bonds. See “THE BONDS – Book-Entry Only System” herein.

The Bonds will be issued as capital appreciation bonds. The Bonds accrete interest from date of delivery of the Bonds (the “Date of Delivery”), compounded semiannually on February 1 and August 1 of each year, commencing August 1, 2016. The Bonds are issuable in denominations of $5,000 Maturity Value, or any integral multiple thereof.

Payments of Accreted Value of the Bonds will be made by The Bank of New York Mellon Trust Company, N.A., as the designated paying agent, bond registrar and transfer agent (the “Paying Agent”), to DTC for subsequent disbursement to DTC Participants (as defined herein) who will remit such payments to the Beneficial Owners of the Bonds. See “THE BONDS – Book-Entry Only System” herein.

The Bonds are subject to optional redemption prior to their stated maturity dates, as further described herein.

MATURITY SCHEDULE (See inside cover)

The Bonds are being offered when, as and if issued and received by the Underwriter, subject to the approval of legality by Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California, Bond Counsel and Disclosure Counsel. Certain matters are being passed upon for the Underwriter by Norton Rose Fulbright US LLP, Los Angeles, California. The Bonds, in book-entry form, will be available through the facilities of The Depository Trust Company in New York, New York, on or about May 25, 2016.

Dated: April 28, 2016

MATURITY SCHEDULE

$13,676,446.85 ACALANES UNION HIGH SCHOOL DISTRICT (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C

Base CUSIP(1): 004284

$13,676,446.85 Serial Bonds

Maturity Denominational Accretion Maturity (August 1) Amount Rate Yield Value CUSIP(1) 2025 $1,946,758.40 3.6754% 2.2600% $2,720,000 D93 2026 2,244,587.70 2.4800 2.4800 2,885,000 E27 2027 2,326,023.00 2.7300 2.7300 3,150,000 E35 2028 2,337,034.60 2.9400 2.9400 3,335,000 E43 2029 2,387,805.65 3.0200 3.0200 3,545,000 E50 2030 2,434,237.50 3.0700 3.0700 3,750,000 E68

______(1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor's Financial Services LLC on behalf of The American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. Neither the Underwriter nor the District is responsible for the selection or correctness of the CUSIP numbers set forth herein.

This Official Statement does not constitute an offering of any security other than the original offering of the Bonds of the District. No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representations other than as contained in this Official Statement, and if given or made, such other information or representation not so authorized should not be relied upon as having been given or authorized by the District.

The issuance and sale of the Bonds have not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)2 and 3(a)12, respectively, for the issuance and sale of such municipal securities. This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.

Certain information set forth herein has been obtained from sources outside of the District which are believed to be reliable, but such information 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.

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 in this Official Statement, 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 Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE THAT MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN SECURITIES DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.

The District maintains a website. However, the information presented on the District’s website is not incorporated into this Official Statement by any reference, and should not be relied upon in making investment decisions with respect to the Bonds.

ACALANES UNION HIGH SCHOOL DISTRICT

Governing Board

Richard Whitmore, President Nancy Kendzierski, Clerk Kathy Coppersmith, Trustee Susie Epstein, Trustee Bob Hockett, Trustee

District Administration

John Nickerson, Ed.D. Superintendent Julie Bautista, Chief Business Official

PROFESSIONAL SERVICES

Bond Counsel and Disclosure Counsel

Stradling Yocca Carlson & Rauth, a Professional Corporation San Francisco, California

Financial Advisor

Keygent LLC El Segundo, California

Paying Agent, Registrar, Transfer Agent and Escrow Agent

The Bank of New York Mellon Trust Company, N.A. Dallas, Texas

Verification Agent

Causey Demgen & Moore P.C. Denver, Colorado

TABLE OF CONTENTS Page

INTRODUCTION ...... 1 CHANGES SINCE DATE OF PRELIMINARY OFFICIAL STATEMENT ...... 1 THE DISTRICT ...... 1 PURPOSE OF THE BONDS ...... 2 AUTHORITY FOR ISSUANCE OF THE BONDS ...... 2 SOURCES OF PAYMENT FOR THE BONDS ...... 2 DESCRIPTION OF THE BONDS ...... 2 TAX MATTERS ...... 3 OFFERING AND DELIVERY OF THE BONDS ...... 3 BOND OWNERS’ RISKS ...... 3 CONTINUING DISCLOSURE ...... 4 FORWARD LOOKING STATEMENTS ...... 4 PROFESSIONALS INVOLVED IN THE OFFERING ...... 4 OTHER INFORMATION ...... 4 THE BONDS ...... 5 AUTHORITY FOR ISSUANCE ...... 5 SECURITY AND SOURCES OF PAYMENT ...... 5 GENERAL PROVISIONS ...... 6 ANNUAL DEBT SERVICE ...... 7 APPLICATION AND INVESTMENT OF BOND PROCEEDS ...... 8 REDEMPTION ...... 8 BOOK-ENTRY ONLY SYSTEM ...... 10 DISCONTINUATION OF BOOK-ENTRY ONLY SYSTEM; PAYMENT TO BENEFICIAL OWNERS ...... 12 DEFEASANCE ...... 13 ESTIMATED SOURCES AND USES OF FUNDS ...... 14 TAX BASE FOR PAYMENT OF BONDS ...... 15 AD VALOREM PROPERTY TAXATION ...... 15 ASSESSED VALUATIONS ...... 16 ASSESSED VALUATION BY LAND USE ...... 18 ASSESSED VALUATION BY JURISDICTION ...... 18 ASSESSED VALUATION OF SINGLE FAMILY HOMES ...... 19 APPEALS AND ADJUSTMENTS OF ASSESSED VALUATIONS ...... 19 SECURED TAX CHARGES AND DELINQUENCIES...... 20 ALTERNATIVE METHOD OF TAX APPORTIONMENT - “TEETER PLAN” ...... 21 TAX RATES ...... 22 PRINCIPAL TAXPAYERS ...... 23 STATEMENT OF DIRECT AND OVERLAPPING DEBT ...... 23 CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS ...... 25 ARTICLE XIIIA OF THE CALIFORNIA CONSTITUTION ...... 25 LEGISLATION IMPLEMENTING ARTICLE XIIIA ...... 26 UNITARY PROPERTY ...... 26 ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION ...... 26 ARTICLE XIIIC AND ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION ...... 27 PROPOSITION 26 ...... 28 PROPOSITIONS 98 AND 111 ...... 28 PROPOSITION 39 ...... 30 PROPOSITION 1A AND PROPOSITION 22 ...... 30 JARVIS VS. CONNELL ...... 31 PROPOSITION 30 ...... 31 PROPOSITION 2 ...... 32 FUTURE INITIATIVES ...... 33 i

TABLE OF CONTENTS (cont'd)

Page

DISTRICT FINANCIAL INFORMATION ...... 34 STATE FUNDING OF EDUCATION ...... 34 OTHER REVENUE SOURCES ...... 39 STATE DISSOLUTION OF REDEVELOPMENT AGENCIES ...... 41 BUDGET PROCESS ...... 43 ACCOUNTING PRACTICES ...... 46 COMPARATIVE FINANCIAL STATEMENTS ...... 46 STATE BUDGET ...... 48 ACALANES UNION HIGH SCHOOL DISTRICT ...... 52 INTRODUCTION ...... 52 ADMINISTRATION ...... 52 AVERAGE DAILY ATTENDANCE AND ENROLLMENT ...... 53 LABOR RELATIONS ...... 53 DISTRICT RETIREMENT PROGRAMS ...... 54 OTHER POST-EMPLOYMENT BENEFITS...... 59 INSURANCE ...... 60 DISTRICT DEBT STRUCTURE ...... 61 TAX MATTERS ...... 64 LEGAL MATTERS ...... 65 LEGALITY FOR INVESTMENT IN CALIFORNIA ...... 65 CONTINUING DISCLOSURE ...... 66 NO LITIGATION ...... 66 INFORMATION REPORTING REQUIREMENTS ...... 66 LEGAL OPINION ...... 66 ESCROW VERIFICATION ...... 66 MISCELLANEOUS ...... 67 RATING ...... 67 FINANCIAL STATEMENTS ...... 67 UNDERWRITING ...... 67 ADDITIONAL INFORMATION ...... 69

APPENDIX A: FORM OPINION OF BOND COUNSEL ...... A-1 APPENDIX B: THE DISTRICT’S 2014-15 AUDITED FINANCIAL STATEMENTS ...... B-1 APPENDIX C: FORM OF CONTINUING DISCLOSURE CERTIFICATE ...... C-1 APPENDIX D: GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE DISTRICT AND CONTRA COSTA COUNTY...... D-1 APPENDIX E: CONTRA COSTA COUNTY INVESTMENT POOL ...... E-1 APPENDIX F: TABLE OF ACCRETED VALUES ...... F-1

$13,676,446.85 ACALANES UNION HIGH SCHOOL DISTRICT (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C

INTRODUCTION

This Official Statement, which includes the cover, inside cover and appendices hereto, provides information in connection with the sale of the Acalanes Union High School District (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C (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, inside cover, 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.

Changes Since Date of Preliminary Official Statement

The information included in the Official Statement under the caption “ACALANES UNION HIGH SCHOOL DISTRICT– District Retirement Programs” has been revised to reflect the release of the fiscal year 2014-15 actuarial valuation for the STRS Defined Benefit Program (defined herein) as well as the approval by the PERS Finance & Administration Committee of the 2016-17 K-14 school district contribution rate and the release of certain actuarial information which will be incorporated into the fiscal year 2014-15 actuarial valuation.

The District

The Acalanes Union High School District (the “District”) is located in the western portion of Contra Costa County (the “County”) approximately 20 miles east of San Francisco. The District operates four comprehensive high schools and one alternative high school and encompasses an area of approximately 80 square miles and has an estimated population of 111,346.

The District was established in 1940 and provides secondary educational services to the residents of the Cities of Lafayette and Orinda, the Town of Moraga, a portion of the City of Walnut Creek, and of certain surrounding unincorporated areas in the County. The 2015-16 assessed valuation of the area served by the District is $29,576,063,982. The District’s projected average daily attendance for fiscal year 2015-16 is 5,296. See “ACALANES UNION HIGH SCHOOL DISTRICT” and “TAX BASE FOR PAYMENT OF BONDS” herein.

The District is governed by a five-member Governing Board (the “Governing Board”), each member of which is elected to a four-year term. Elections for positions to the Governing Board are held every two years, alternating between two and three available positions. The management and policies of the District are administered by a Superintendent appointed by the Governing Board who is responsible for day-to-day District operations as well as the supervision of the District’s other key personnel. John Nickerson, Ed.D. is the District Superintendent.

Unless otherwise indicated, the following financial, statistical and demographic data has been provided by the District. Additional information concerning the District and copies of the most recent and subsequent audited financial reports of the District may be obtained by contacting: Acalanes Union

High School District, 1212 Pleasant Hill Road, Lafayette, CA 94549, Attention: Superintendent. See “ACALANES UNION HIGH SCHOOL DISTRICT” herein.

See “TAX BASE FOR PAYMENT OF BONDS” herein for more information regarding the District’s assessed valuation, and “Acalanes Union High School District” and “DISTRICT FINANCIAL INFORMATION” herein for more information regarding the District generally.

Purpose of the Bonds

The Bonds are being issued to (i) pay the District’s 2014 General Obligation Bond Anticipation Notes (the “2014 Notes”) and (ii) pay the costs of issuing the Bonds. The 2014 Notes were issued to finance the repair, upgrading, acquisition, construction and equipping of certain District property and facilities, in anticipation of the issuance of bonds under the 2008 Authorization. See “THE BONDS – Application and Investment of Bond Proceeds” and “ESTIMATED SOURCES AND USES OF FUNDS” herein.

Authority for Issuance of the Bonds

The Bonds are issued pursuant to certain provisions of the State of California (the “State”) Government Code and other applicable law, and pursuant to a resolution adopted by the Board on April 20, 2016. See “THE BONDS – Authority for Issuance” herein.

Sources of Payment for the Bonds

The Bonds are general obligations of the District payable solely from ad valorem property taxes. The Board of Supervisors of the County is empowered and obligated to annually levy ad valorem taxes upon all property within the District subject to taxation thereby, without limitation as to rate or amount (except certain personal property which is taxable at limited rates), for the payment of Accreted Value of the Bonds when due. See “THE BONDS – Security and Sources of Payment” and “TAX BASE FOR PAYMENT OF BONDS” herein.

Description of the Bonds

Form and Registration. The Bonds will be issued in fully registered book-entry form only, without coupons. The Bonds will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository of the Bonds. See “The Bonds – General Provisions” and “THE BONDS – Book-Entry Only System” herein. In the event that the book-entry only system described below is no longer used with respect to the Bonds, the Bonds will be registered in accordance with the Resolution (as defined herein). See “The Bonds – Discontinuation of Book-Entry Only System; Payment to Beneficial Owners” herein. Purchasers of the Bonds (the “Beneficial Owners”) will not receive physical certificates representing their interests in the Bonds.

So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the “Owners,” “Bondowners” or “Holders” of the Bonds (other than under “INTRODUCTION – Tax Matters” and “TAX MATTERS” herein and in “APPENDIX A” attached hereto) will mean Cede & Co. and will not mean the Beneficial Owners of the Bonds.

Capital Appreciation Bonds. The Bonds will be issued as capital appreciation bonds. The Bonds will not bear interest on a periodic basis. The value at maturity of a Bond (the “Maturity Value”) is equal to its Accreted Value (as defined herein) upon the maturity thereof, such Accreted Value being composed

of its initial principal amount (the “Denominational Amount”) and the interest accreting thereon between the Date of Delivery (as defined herein) and its respective maturity date.

Denominations. Individual purchases of interests in the Bonds will be available to purchasers of the Bonds in the denominations of $5,000 Maturity Value, as applicable, or any integral multiples thereof.

Redemption. The Bonds are subject to optional redemption prior to their stated maturity dates, as further described herein. See “THE BONDS – Redemption” herein.

Payments. Interest on the Bonds accretes on the basis of a 360-day year of twelve, 30-day months from their initial date of delivery (the “Date of Delivery”) at the Accretion Rates (as defined herein) set forth in the table of accreted values as shown in “APPENDIX F – TABLE OF ACCRETED VALUES” attached hereto, compounded semiannually on February 1 and August 1 of each year, commencing August 1, 2016. The Maturity Value of the Bonds (or Accreted Value if redeemed prior to maturity) is payable on August 1, in the amounts and years as set forth in “APPENDIX F – TABLE OF ACCRETED VALUES” attached hereto and on the inside front cover hereof.

Payments of the Accreted Value of the Bonds will be made by The Bank of New York Mellon Trust Company, N.A., as the designated paying agent, registrar and transfer agent (the “Paying Agent”), to DTC for subsequent disbursement through DTC Participants (as defined herein) to the Beneficial Owners of the Bonds.

Tax Matters

In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California (“Bond Counsel”), based on existing statutes, regulations, rulings and judicial decisions and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California (the “State”) personal income tax. See “TAX MATTERS” herein.

Offering and Delivery of the Bonds

The Bonds are offered when, as and if issued, subject to approval as to their legality by Bond Counsel. It is anticipated that the Bonds in book-entry form will be available for delivery through the facilities of DTC on or about May 25, 2016 (the “Closing Date”).

Bond Owners’ Risks

The Bonds are general obligations of the District payable solely from ad valorem property taxes, which may be levied without limitation as to rate or amount (except with respect to certain personal property which is taxable at limited rates) on all taxable property in the District. For more complete information regarding the District’s financial condition and taxation of property within the District, see “TAX BASE FOR PAYMENT OF BONDS,” “ACALANES UNION HIGH SCHOOL DISTRICT” and “DISTRICT FINANCIAL INFORMATION” herein.

Continuing Disclosure

The District will covenant for the benefit of the Owners and Beneficial Owners of the Bonds to make available certain financial information and operating data relating to the District and to provide notices of the occurrence of certain listed events in order to assist the Underwriter (as defined herein) in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). See “LEGAL MATTERS – Continuing Disclosure” herein. The specific nature of the information to be made available and the notices of listed events required to be provided are described in “APPENDIX C – FORM OF CONTINUING DISCLOSURE CERTIFICATE” attached hereto.

Forward Looking Statements

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget,” “intend,” or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information regarding the District herein.

THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT.

Professionals Involved in the Offering

Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California, is acting as Bond Counsel and Disclosure Counsel to the District with respect to the Bonds. Keygent LLC, El Segundo, California, is acting as financial advisor to the District with respect to the Bonds. Stradling Yocca Carlson & Rauth and Keygent LLC will receive compensation from the District contingent upon the sale and delivery of the Bonds. Certain matters are being passed upon for the Underwriter by Norton Rose Fulbright US LLP, Los Angeles, California.

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, Acalanes Union High School District, 1212 Pleasant Hill Road, Lafayette, CA 94549, telephone: (925) 280-3900. The District may impose a charge for copying, mailing and handling.

No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representations other than as contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the District. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall

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.

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 such documents, statutes and constitutional provisions.

Certain of the information set forth herein, other than that provided by the District, 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.

Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms by the Resolution.

THE BONDS

Authority for Issuance

The Bonds are issued pursuant to the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the State Government Code, Article XIIIA of the State Constitution and pursuant to a resolution adopted by the Board on April 20, 2016 (the “Resolution”). The District received authorization at an election held on November 4, 2008 by the requisite 55% or more of the votes cast by eligible voters within the District to issue $93,000,000 aggregate principal amount of general obligation bonds (the “2008 Authorization”).

The District has previously caused the issuance of two series of bonds pursuant to the 2008 Authorization. On March 30, 2010, the District caused the issuance of its Election of 2008 General Obligation Bonds, Series A, in the aggregate principal amount of $29,999,817.55 (the “Series A Bonds”). On July 20, 2011, the District caused the issuance of its Election of 2008 General Obligation Bonds, Series B, in the aggregate principal amount of $37,999,105.55 (the “Series B Bonds”). The Bonds are the third series of bonds under the 2008 Authorization. After the issuance of the Bonds, $11,324,630.05 of the 2008 Authorization will remain unissued.

Security and Sources of Payment

The Bonds are general obligations of the District, payable solely from the proceeds of ad valorem property taxes. The Board of Supervisors of the County is empowered and obligated to annually levy ad valorem taxes for the payment of the Accreted Value of the Bonds upon all property subject to taxation by the District without limitation as to rate or amount (except certain personal property which is taxable at limited rates). The levy may include an allowance for an annual reserve, established for the purpose of avoiding fluctuating tax levies. The County, however, is not obligated to establish such a reserve, and the District can make no representation that the County will do so.

Pursuant to Government Code Section 53515, the Bonds will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the above-described ad valorem property tax. The lien will automatically attach, without further action or authorization by the Board, and will be valid and binding from the time the Bonds are executed and delivered at the Closing Date. The revenues received pursuant to the levy and collection of the ad valorem property tax will be immediately subject to the lien, and such lien will be enforceable against the District, its successor, transferees and creditors, and all other parties asserting rights therein, irrespective of whether such parties have notice of the lien and without the need for physical delivery, recordation, filing or further act.

Ad valorem property taxes for the payment of the Bonds, when collected, will be deposited by the County into the fund known as the “Acalanes Union High School District Election of 2008 General Obligation Bonds, Series 2016C Debt Service Fund” (the “Debt Service Fund”), which is segregated and held by the County and which is available for the payment of the Accreted Value of the Bonds when due, and for no other purpose. Pursuant to the Resolution, the District has pledged amounts on deposit in the Debt Service Fund to the payment of the Bonds. Although the County is obligated to levy an ad valorem tax for the payment of the Bonds, and the County will maintain the Debt Service Fund, the Bonds are not a debt of the County. See “TAX BASE FOR PAYMENT OF BONDS” herein.

The moneys in the Debt Service Fund, to the extent necessary to pay the Accreted Value of the Bonds, as the same becomes due and payable, will be transferred by the County to the Paying Agent which, in turn, shall pay such moneys to DTC to pay the Accreted Value of the Bonds. DTC will thereupon make payment of the Accreted Value of the Bonds to the DTC Participants who will thereupon make payments of Accreted Value to its Participants (as defined herein) for subsequent disbursement to the Beneficial Owners of the Bonds.

The rate of the annual ad valorem taxes 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 in any year. Fluctuations in the annual debt service on the Bonds and the assessed value of taxable property in the District may cause the annual tax rates to fluctuate. Economic and other factors beyond the District’s control, such as general market decline in land values, disruption in financial markets that may reduce the availability of financing for purchasers of property, reclassification of property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by the State and local agencies and property used for qualified education, hospital, charitable or religious purposes), or the complete or partial destruction of the taxable property caused by a natural or manmade disaster, such as earthquake, fire, flood, drought, or toxic contamination, could cause a reduction in the assessed value of taxable property within the District and necessitate a corresponding increase in the respective annual tax rates. For further information regarding the District’s assessed valuation, tax rates, overlapping debt, and other matters concerning taxation, see “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS – Article XIIIA of the California Constitution” and “TAX BASE FOR PAYMENT OF BONDS” herein.

General Provisions

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. Beneficial Owners will not receive physical certificates representing their interests in the Bonds. The Bonds will be dated as of the Date of Delivery.

The Bonds are payable only at maturity (or earlier redemption, if applicable), and will not pay interest on a current basis. The Bonds accrete in value from the Date of Delivery at the Accretion Rates per annum set forth on the inside front cover hereof, compounded semiannually on February 1 and

August 1 of each year, commencing August 1, 2016. The Maturity Value of a Bond is its Accreted Value at its maturity date. Interest with respect to each Bond is represented by the amount each such Bond accretes in value from its Denominational Amount to the date for which the Accreted Value is calculated. The Accreted Value of a Bond is calculated by discounting on a 30-day month, 360-day year basis its Maturity Value on the basis of a constant interest rate (the “Accretion Rate”) compounded semiannually on February 1 and August 1 of each year to the date for which an Accreted Value is calculated, and if the date for which Accreted Value is calculated is between February 1 and August 1, by pro-rating the Accreted Values to the closest prior or subsequent February 1 or August 1. See “APPENDIX F – TABLE OF ACCRETED VALUES” attached hereto. The Bonds are issuable in denominations of $5,000 Maturity Value or any integral multiple thereof (except for one odd denomination, if necessary).

Payments. The Owner in an aggregate Maturity Value of $1,000,000 or more may request in writing to the Paying Agent that such Owner be paid interest by wire transfer to the bank and account number on file with the Paying Agent as of the close of business on the 15th day of the month next preceding any Bond Payment Date (a “Record Date”). The Accreted Value and redemption premiums, if any, on the Bonds will be payable upon maturity or redemption upon surrender at the designated office of the Paying Agent. The Accreted Value of the Bonds will be payable in lawful money of the United States of America. The Paying Agent is authorized to pay the Bonds when duly presented for payment at maturity, and to cancel all Bonds upon payment thereof. So long as the Bonds are held in the book-entry system of DTC, all payments of Accreted Value of the Bonds will be made by the Paying Agent to Cede & Co. (as a nominee of DTC), as the registered Owner of the Bonds. See “ – Book-Entry Only System” herein.

Annual Debt Service

The following table shows the annual debt service requirements of the District for the Bonds, assuming no optional redemptions are made:

Annual Period Annual Accreted Ending Principal Interest Total August 1 Payment(1) Payment(1) Debt Service 2025 $1,946,758.40 $773,241.60 $2,720,000.00 2026 2,244,587.70 640,412.30 2,885,000.00 2027 2,326,023.00 823,977.00 3,150,000.00 2028 2,337,034.60 997,965.40 3,335,000.00 2029 2,387,805.65 1,157,194.35 3,545,000.00 2030 2,434,237.50 1,315,762.50 3,750,000.00 Totals $13,676,446.85 $5,708,553.15 $19,385,000.00 ______(1) The Bonds are payable only at maturity (or earlier redemption, if applicable) on August 1 of the years indicated on the inside front cover pages hereof, and interest on such Bonds is compounded semiannually on February 1 and August 1, commencing August 1, 2016.

See “ACALANES UNION HIGH SCHOOL DISTRICT – District Debt Structure” herein for a complete debt service schedule of all of the District’s outstanding general obligation bonded debt.

Application and Investment of Bond Proceeds

The Bonds are being issued to (i) pay the District’s 2014 Notes, and (ii) pay the costs of issuing the Bonds.

2014 Notes Escrow Fund. A portion of the proceeds from the sale of the Bonds, will be paid to The Bank of New York Mellon Trust Company, N.A., acting as Escrow Agent, to the credit of an escrow fund (the “Escrow Fund”) created pursuant to an escrow agreement (the “Escrow Agreement”) by and between the District and the Escrow Agent. Amounts deposited in the Escrow Fund will be used to purchase certain non-callable direct and general obligations of the United States of America, or obligations unconditionally guaranteed as to principal or interest by the United States (collectively, “Federal Securities”), the principal of and interest on which will be sufficient, together with any moneys deposited in the Escrow Fund and held uninvested as cash, to enable the Escrow Agent to pay the principal of and interest on the 2014 Notes on their maturity date. See “LEGAL MATTERS – Escrow Verification” herein.

The sufficiency of the securities and cash on deposit in the Escrow Fund, together with realizable interest and earnings thereon, to pay the principal of and interest on the 2014 Notes, as the same shall become due and payable, will be verified by Causey Demgen & Moore P.C., Denver Colorado, (the “Verification Agent”). As a result of the deposit and application of funds so provided in the Escrow Agreement, and assuming the accuracy of the Underwriter’s and Verification Agent’s computations, the 2014 Notes will be defeased and the obligation of the District to make payments of principal thereof and interest thereon will terminate.

Debt Service Fund. Any accrued interest or premium received by the District from the sale of the Bonds will be deposited in the Debt Service Fund. The ad valorem property taxes levied by the County for the payment of the Bonds, when collected, will also be deposited into the Debt Service Fund. Any interest earnings on moneys held in the Debt Service Fund will be retained therein. If, after all of the Bonds have been redeemed or paid and otherwise cancelled, there are moneys remaining in the Debt Service Fund, said moneys will be transferred to the general fund of the District as provided and permitted by law.

Expected Investment of Bond Proceeds. Moneys in the Debt Service Fund is expected to be invested through the County’s pooled investment fund (the “Investment Pool”). See “APPENDIX E – CONTRA COSTA COUNTY INVESTMENT POOL” attached hereto.

Redemption

Optional Redemption. The Bonds maturing on August 1, 2025 are not subject to redemption prior to their maturity date. The Bonds maturing on or after August 1, 2026 are subject to redemption prior to their respective stated maturity dates, at the option of the District, from any source of available funds, in whole, or in part, on any date on or after February 1, 2026 at a redemption price equal to the Accreted Value of the Bonds so redeemed as of the date fixed for redemption, without premium.

Selection of Bonds for Redemption. Whenever provision is made for the optional redemption of Bonds and less than all outstanding Bonds are to be redeemed, the Paying Agent, upon written instruction from the District, will select Bonds for redemption as so directed, and if not directed, in inverse order of maturity. Within a maturity, the Paying Agent will select Bonds for redemption as directed by the District, and if not so directed, by lot. Redemption by lot will be in such manner as the Paying Agent will determine; provided, however, that the portion of any Bond to be redeemed in part shall be in integral multiples of the Accreted Value per $5,000 Maturity Value thereof.

Notice of Redemption. When redemption is authorized or required pursuant to the Resolution, upon written instruction from the District, the Paying Agent will give notice (a “Redemption Notice”) of the redemption of the Bonds. Each Redemption Notice will 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 portion of the Accreted Value, as applicable, of such Bond to be redeemed, and (g) the original issue date, interest rate, Accretion Rate, and stated maturity date of each Bond to be redeemed in whole or in part.

The Paying Agent will take the following actions with respect to each such Redemption Notice: (a) at least 20 but not more than 45 days prior to the redemption date, such Redemption Notice will be given to the respective Owners of Bonds designated for redemption by registered or certified mail, postage prepaid, at their addresses appearing on the bond register; (b) at least 20 but not more than 45 days prior to the redemption date, such Redemption Notice will be given by (i) registered or certified mail, postage prepaid, (ii) telephonically confirmed facsimile transmission, or (iii) overnight delivery service, to the Securities Depository; (c) at least 20 but not more than 45 days prior to the redemption date, such Redemption Notice will be given by (i) registered or certified mail, postage prepaid, or (ii) overnight delivery service, to one of the Information Services; and (d) provide the Redemption Notice to such other persons as may be required pursuant to the Continuing Disclosure Certificate.

“Information Services” means Financial Information, Inc.’s “Daily Called Bond Service,” 1 Cragwood Road, 2nd Floor, South Plainfield, New Jersey 07080, Attention: Editor; Mergent Inc., 585 Kingsley Park Drive, Fort Mill, South Carolina 29715, Attention: Called Bond Department; and Standard and Poor’s J.J. Kenny Information Services’ “Called Bond Record,” 55 Water Street, 45th Floor, New York, New York 10041.

“Securities Depository” shall mean The Depository Trust Company, 55 Water Street, New York, New York 10041.

A certificate of the Paying Agent or the District that a Redemption Notice has been given as provided in the Resolution will be conclusive as against all parties. Neither failure to receive any Redemption Notice nor any defect in any such Redemption Notice so given will affect the sufficiency of the proceedings for the redemption of the affected Bonds. Each check issued or other transfer of funds made by the Paying Agent for the purpose of redeeming Bonds will bear or include the CUSIP number, if any, identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

Conditional Notice of Redemption. With respect to any notice of optional redemption of Bonds (or portions thereof) as described above, unless upon the giving of such notice such Bonds or portions thereof will be deemed to have been defeased as described in “—Defeasance” herein, such notice will state that such redemption will be conditioned upon the receipt by an independent escrow agent selected by the District, on or prior to the date fixed for such redemption, of the moneys necessary and sufficient to pay the Accreted Value of, and premium, if any, on such Bonds (or portions thereof) to be redeemed, and that, if such moneys shall not have been so received, said notice shall be of no force and effect, no portion of the Bonds shall be subject to redemption on such date and such Bonds shall not be required to be redeemed on such date. In the event that such Redemption Notice contains such a condition and such moneys are not so received, the redemption will not be made and the Paying Agent will, within a reasonable time thereafter (but in no event later than the date originally set for redemption) give notice, to the persons to whom and in the manner in which the Redemption Notice was given, that such moneys

were not so received. In addition, the District will have the right to rescind any Redemption Notice, by written notice to the Paying Agent, on or prior to the date fixed for such redemption. The Paying Agent will distribute a notice of the rescission of such Redemption Notice in the same manner as such Redemption Notice was originally provided.

Partial Redemption of Bonds. Upon the surrender of any Bond redeemed in part only, the Paying Agent will execute and deliver to the Owner thereof a new Bond or Bonds of like tenor and maturity and of authorized denominations equal in Transfer Amount (which, with respect to any outstanding Bond, means the Maturity Value thereof, as applicable) to the unredeemed portion of the Bond surrendered. Such partial redemption is valid upon payment of the amount required to be paid to such Owner, and the District will be released and discharged thereupon from all liability to the extent of such payment.

Effect of Notice of Redemption. If notice of redemption is given as described above, and the moneys for the redemption (including the interest accrued to the applicable date of redemption) have been set aside as described in “—Defeasance” herein, the Bonds to be redeemed will become due and payable on such date of redemption.

If on such redemption date, moneys for the optional redemption of all the Bonds to be redeemed, together with interest accrued to such redemption date, are held in trust so as to be available therefor on such redemption date, and if a Redemption Notice thereof has been given as described above, then from and after such redemption date, interest on the Bonds to be redeemed will cease to accrue or accrete and become payable. All money held for the redemption of Bonds will be held in trust for the account of the Owners of the Bonds to be so redeemed.

Bonds No Longer Outstanding. When any Bonds (or portions thereof), which have been duly called for redemption prior to maturity pursuant to the provisions of the Resolution, or with respect to which irrevocable instructions to call for redemption prior to maturity at the earliest redemption date have been given to the Paying Agent, in form satisfactory to it, and sufficient moneys shall be held irrevocably in trust for the payment of the redemption price of such Bonds or portions thereof, all as provided in the Resolution, then such Bonds will no longer be deemed outstanding and will be surrendered to the Paying Agent for cancellation.

Book-Entry Only System

The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy or completeness thereof. The District cannot and does not give any assurances that DTC, DTC Direct Participants or Indirect Participants (as defined herein) will distribute to the Beneficial Owners (a) payments of Accreted Value of or premium, if any, on the Bonds, (b) certificates 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, Direct Participants or Indirect Participants will act in the manner described in this Official Statement. 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 Participants are on file with DTC.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for 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 certificate will be issued for each of maturity of the Bonds, each in the aggregate principal amount of such bond, and will be deposited with DTC.

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 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. However, the information presented on such website is not incorporated herein by any reference to such website.

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 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 certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

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 DTC 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.

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 the 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 notices be provided directly to them.

Redemption notices shall 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.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the 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 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds or distributions 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 the District or Paying Agent, on the 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, the Paying Agent, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds or distributions to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the 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.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. 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.

Discontinuation of Book-Entry Only System; Payment to Beneficial Owners

So long as any of the Bonds remain outstanding, the District will cause the Paying Agent to maintain at its principal office all books and records necessary for the registration, exchange and transfer of such Bonds, which will at all times be open to inspection by the District, and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register, exchange or transfer or cause to be registered, exchanged or transferred, on said books, Bonds as provided in the Resolution.

In the event that the book-entry system described above is no longer used with respect to the Bonds, the following provisions will govern the payment, registration, transfer, exchange and replacement of the Bonds.

The Accreted Value of the Bonds and any premium upon the redemption thereof prior to maturity will be payable in lawful money of the United States of America upon presentation and surrender of the Bonds at the principal office of the Paying Agent. Interest on the Bonds will be paid by the Paying Agent by check or draft mailed to the person whose name appears on the registration books of the Paying Agent as the registered Owner thereof, and to that person’s address appearing on the registration books as of the close of business on the Record Date. At the written request of any registered Owner of at least $1,000,000 in aggregate Maturity Value, interest shall be wired to a bank and account number on file with the Paying Agent as of the Record Date.

Any Bond may be exchanged for a Bond of like series, tenor, maturity and Transfer Amount (which, with respect to any outstanding Bond, means the Maturity Value thereof) upon presentation and surrender at the principal office of the Paying Agent, together with a request for exchange signed by the registered Owner or by a person legally empowered to do so in a form satisfactory to the Paying Agent. A Bond may be transferred on the Bond Register only upon presentation and surrender of the Bond at the principal office of the Paying Agent together with an assignment executed by the Owner or by a person legally empowered to do so in a form satisfactory to the Paying Agent. Upon exchange or transfer, the Paying Agent will complete, authenticate and deliver a new Bond or Bonds of like tenor and of any authorized denomination or denominations requested by the Owner equal to the Transfer Amount of the Bond surrendered and bearing or accruing interest at the same rate and maturing on the same date.

Neither the District nor the Paying Agent will be required to (a) issue or transfer any Bonds during a period beginning with the opening of business on the 16th day next preceding either any Bond Payment Date or any date of selection of Bonds to be redeemed and ending with the close of business on the Bond Payment Date or any day on which the applicable Redemption Notice is given or (b) transfer any Bonds which have been selected or called for redemption in whole or in part.

Defeasance

All or any portion of the outstanding maturities of the Bonds may be defeased at any time prior to maturity in the following ways:

(a) Cash: by irrevocably depositing with an independent escrow agent selected by the District an amount of cash which, together with any amounts transferred from the Debt Service Fund, is sufficient to pay all Bonds outstanding and designated for defeasance (including all Accreted Value thereof and redemption premiums, if any) at or before their maturity date; or

(b) Government Obligations: by irrevocably depositing with an independent escrow agent selected by the District noncallable Government Obligations, together with any amounts transferred from the Debt Service Fund, if any, and any other cash, if required, in such amount as will, together with interest to accrue thereon, in the opinion of an independent certified public accountant, be fully sufficient to pay and discharge all Bonds outstanding and designated for defeasance (including all Accreted Value thereof and redemption premiums, if any) at or before their maturity date;

then, notwithstanding that any such maturities of Bonds shall not have been surrendered for payment, all obligations of the District with respect to all such designated outstanding Bonds shall cease and terminate,

except only the obligation of the independent escrow agent selected by the District to pay or cause to be paid from funds deposited pursuant to paragraphs (a) or (b) above, to the Owners of such designated Bonds not so surrendered and paid all sums due with respect thereto.

“Government Obligations” means direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the United States of America (which may consist of obligations of the Resolution Funding Corporation that constitute interest strips). In the case of direct and general obligations of the United States of America, Government Obligations shall include evidences of direct ownership of proportionate interests in future interest or principal payments of such obligations. Investments in such proportionate interests must be limited to circumstances where (a) a bank or trust company acts as custodian and holds the underlying United States obligations; (b) the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor of the underlying United States obligations; and (c) the underlying United States obligations are held in a special account, segregated from the custodian’s general assets, and are not available to satisfy any claim of the custodian, any person claiming through the custodian, or any person to whom the custodian may be obligated; provided that all such obligations are rated or assessed at least as high as direct and general obligations of the United States of America by either Moody’s Investors Service (“Moody’s”) or Standard & Poor’s Ratings Service, a Standard & Poor’s Financial Services LLC business (“S&P”).

ESTIMATED 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 $13,676,446.85 Net Original Issue Premium 266,016.00 2014 Notes Debt Service Fund 778,083.33 2014 Notes Building Fund 1,500,000.00 Total Sources $16,220,546.18

Uses of Funds Escrow Fund $16,014,714.23 Underwriter’s Discount 29,404.36 Costs of Issuance(1) 176,427.59 Total Uses $16,220,546.18

(1) Reflects the costs of issuance of the Bonds, including, but not limited to, the rating agency fees, demographics and filing fees, printing costs, legal fees, financial advisory fees, verification agent fees, Escrow Agent fees and the costs and fees of the Paying Agent to be paid from proceeds of the Bonds.

TAX BASE FOR PAYMENT OF BONDS

The information in this section describes ad valorem property taxation, assessed valuation, and other measures of the tax base of the District. The Bonds are payable solely from ad valorem taxes levied and collected by the County on taxable property in the District. The District’s general fund is not a source for the payment of the Bonds.

Ad Valorem Property Taxation

District property taxes are assessed and collected by the County at the same time and on the same tax rolls as county, city and special district property taxes. Assessed valuations are the same for both District and County taxing purposes.

Taxes are levied for each fiscal year on taxable real and personal property which is located 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 assessor, to secure payment of the taxes. Unsecured property comprises all property not attached to land such as personal property or business property. Boats and airplanes are examples of unsecured property. Unsecured property is assessed on the “unsecured roll.” A supplemental roll is developed when property changes hands or new construction is completed. The County levies and collects all property taxes for property falling within the County’s taxing boundaries.

The valuation of secured property is established as of January 1 and is subsequently equalized in August. Property taxes are payable in two installments, due November 1 and February 1, respectively, and become delinquent on December 10 and April 10, respectively. A 10% penalty attaches to any delinquent installment, plus a minimum $10 cost on the second installment, plus any additional amount determined by the Treasurer-Tax Collector of the County (the “Treasurer”). Property on the secured roll with delinquent taxes is declared tax-defaulted on or about June 30 of the calendar year. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a minimum $15 redemption fee and a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is then 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 they are not paid by August 31. In the case of unsecured property taxes, a 10% penalty attaches to delinquent taxes on property on the unsecured roll, an additional penalty of 1.5% per month begins to accrue beginning November 1 of the fiscal year, and a lien may be recorded against the assessee. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the assessee; (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a judgment lien on specific property of the assessee; (3) filing a certificate of delinquency for record in the County Recorder’s office in order to obtain a lien on specified property of the assessee; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. See also “ – Secured Tax Charges and Delinquencies” herein.

State law exempts from taxation $7,000 of the full cash value of an owner-occupied dwelling, but this exemption does not result in any loss of revenue to local agencies, since the State reimburses local agencies for the value of the exemptions.

All property is assessed using full cash value as defined by Article XIIIA of the State Constitution. State law provides exemptions from ad valorem property taxation for certain classes of property, such as churches, colleges, non-profit hospitals, and charitable institutions.

Assessed valuation growth allowed under Article XIIIA (new construction, certain changes of ownership, 2% inflation) is allocated on the basis of “situs” among the jurisdictions that serve the tax rate area within which the growth occurs. Local agencies and K-14 school districts (as defined herein) share the growth of “base” revenues from the tax rate area. Each year’s growth allocation becomes part of each agency’s allocation in the following year.

Assessed Valuations

Property within the District has a total assessed valuation for fiscal year 2015-16 of $29,576,063,982. The following table shows a history of assessed valuations in the District.

ASSESSED VALUATIONS Fiscal Years 2005-06 through 2015-16 Acalanes Union High School District Total Before Fiscal Year Local Secured Utility Unsecured Rdv. Increment 2005-06 $19,004,752,623 $1,475,950 $428,699,704 $19,434,928,277 2006-07 20,685,834,324 1,476,589 450,100,666 21,137,411,579 2007-08 22,115,176,261 1,476,589 456,882,163 22,573,535,013 2008-09 23,111,571,673 1,419,775 487,171,580 23,600,163,028 2009-10 23,678,370,404 1,419,775 479,708,986 24,159,499,165 2010-11 23,608,834,196 650,940 472,451,284 24,081,936,420 2011-12 23,202,310,503 853,360 473,466,194 23,676,630,057 2012-13 23,328,461,333 767,419 474,043,369 23,803,272,121 2013-14 24,929,357,217 767,419 495,152,016 25,425,276,652 2014-15 26,981,188,324 991,026 465,970,651 27,448,150,001 2015-16 29,128,398,520 991,026 446,674,436 29,576,063,982 ______Source: California Municipal Statistics, Inc.

Economic and other factors beyond the District’s control, such as general market decline in real property values, disruption in financial markets that may reduce availability of financing for purchasers of property, reclassification of property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by the State and local agencies and property used for qualified education, hospital, charitable or religious purposes), or the complete or partial destruction of the taxable property caused by a natural or manmade disaster, such as earthquake, drought, flood, fire or toxic contamination, could cause a reduction in the assessed value of taxable property within the District. Any such reduction would result in a corresponding increase in the annual tax rates levied by the County to pay the debt service with respect to the Bonds. See “THE BONDS – Security and Sources of Payment” herein.

Drought. On January 17, 2014, the State Governor (the “Governor”) declared a state-wide Drought State of Emergency. As of such date, the State faced water shortfalls due to the driest year in recorded State history; the State’s rivers and reservoirs were below their record low levels, and manual and electronic readings recorded the water content of snowpack at the highest elevations in the State (chiefly in the Sierra Nevada mountain range) at about 20% of normal average for the winter season. As part of his State of Emergency declaration, the Governor directed State officials to assist agricultural producers and communities that may be economically impacted by dry conditions. Following the

Governor’s declaration, 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 measures including a requirement that the Water Board impose restrictions to achieve a statewide 25% reduction in urban water usage through February 28, 2016. On May 5, 2015, the Water Board adopted an emergency regulation to implement the Governor’s April 1, 2015 executive order, the provisions of which went into effect on May 18, 2015. On November 13, 2015, the Governor issued an executive order directing the Water Board to extend the emergency water conservation regulation should the drought conditions persist through January 2016. Following the Governor’s executive order, and as a result of the State’s continuing severe drought, on February 2, 2016, the Water Board adopted a revised emergency regulation to extend water conservation mandates through the end of October 2016.

The District cannot make any representation 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, or to what extent the drought could cause disruptions to economic activity within the boundaries of the District.

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Assessed Valuation by Land Use

The following table shows a per-parcel analysis of the distribution of taxable property within the District by principal use, and the fiscal year 2015-16 local secured assessed valuation of such parcels.

ASSESSED VALUATION AND PARCELS BY LAND USE Fiscal Year 2015-16 Acalanes Union High School District

2015-16 % of No. of % of Non-Residential: Assessed Valuation(1) Total Parcels Total Agricultural $16,439,421 0.06% 20 0.05% Commercial/Office 3,613,045,083 12.40 1,354 3.17 Vacant Commercial 39,375,599 0.14 75 0.18 Industrial 71,529,010 0.25 20 0.05 Recreational 138,629,582 0.48 93 0.22 Government/Social/Institutional 17,637,090 0.06 922 2.16 Miscellaneous 31,570,489 0.11 211 0.49 Subtotal Non-Residential $3,928,226,274 13.49% 2,695 6.31%

Residential: Single Family Residence $19,400,356,543 66.60% 27,209 63.66% Condominium/Townhouse 3,341,944,090 11.47 10,125 23.69 Cooperatives(2) 604,843,979 2.08 68 0.16 2-4 Residential Units 281,779,016 0.97 530 1.24 5+ Residential Units/Apartments 1,224,095,874 4.20 314 0.73 Vacant Residential 347,152,744 1.19 1,799 4.21 Subtotal Residential $25,200,172,246 86.51% 40,045 93.69%

Total $29,128,398,520 100.00% 42,740 100.00% ______(1) Local secured assessed valuation, excluding tax-exempt property. (2) The 68 cooperative parcels contain approximately 3,368 residential units. Source: California Municipal Statistics, Inc.

Assessed Valuation by Jurisdiction

The following table shows the fiscal year 2015-16 assessed valuation of the District by jurisdiction.

ASSESSED VALUATION BY JURISDICTION(1) Fiscal Year 2015-16 Acalanes Union High School District

Assessed Valuation % of Assessed Valuation % of Jurisdiction Jurisdiction: in District District of Jurisdiction in District City of Lafayette $6,973,421,248 23.58% $6,973,421,248 100.00% Town of Moraga 3,608,163,806 12.20 3,608,163,806 100.00 City of Orinda 5,835,129,469 19.73 5,835,129,469 100.00 City of Walnut Creek 8,855,088,929 29.94 15,304,825,412 57.86 Unincorporated Contra Costa County 4,304,260,530 14.55 34,665,590,161 12.42 Total District $29,576,063,982 100.00%

Contra Costa County $29,576,063,982 100.00% $172,371,482,916 17.16%

(1) Before deduction of redevelopment incremental valuation. Source: California Municipal Statistics, Inc.

Assessed Valuation of Single Family Homes

The following table displays the per-parcel analysis of single family residences within the District, in terms of their fiscal year 2015-16 assessed valuation.

ASSESSED VALUATION OF SINGLE FAMILY HOMES Fiscal Year 2015-16 Acalanes Union High School District

No. of 2015-16 Average Median Parcels Assessed Valuation Assessed Valuation Assessed Valuation Single Family Residential 27,209 $19,400,356,543 $713,012 $637,712

2015-16 No. of % of Cumulative Total % of Cumulative Assessed Valuation Parcels(1) Total % of Total Valuation Total % of Total $0 - $99,999 1,575 5.789% 5.789% $126,974,257 0.654% 0.654% 100,000 - 199,999 3,255 11.963 17.751 458,364,642 2.363 3.017 200,000 - 299,999 1,696 6.233 23.985 424,571,686 2.188 5.206 300,000 - 399,999 1,851 6.803 30.788 646,795,984 3.334 8.540 400,000 - 499,999 2,124 7.806 38.594 958,601,532 4.941 13.481 500,000 - 599,999 2,261 8.310 46.904 1,241,661,734 6.400 19.881 600,000 - 699,999 2,213 8.133 55.037 1,439,045,421 7.418 27.299 700,000 - 799,999 2,141 7.869 62.906 1,608,536,463 8.291 35.590 800,000 - 899,999 2,103 7.729 70.635 1,784,678,379 9.199 44.789 900,000 - 999,999 1,787 6.568 77.202 1,693,572,759 8.730 53.519 1,000,000 - 1,099,999 1,306 4.800 82.002 1,366,823,376 7.045 60.564 1,100,000 - 1,199,999 1,019 3.745 85.747 1,169,124,684 6.026 66.590 1,200,000 - 1,299,999 767 2.819 88.566 956,081,826 4.928 71.518 1,300,000 - 1,399,999 684 2.514 91.080 921,402,622 4.749 76.268 1,400,000 - 1,499,999 471 1.731 92.811 680,331,378 3.507 79.775 1,500,000 - 1,599,999 385 1.415 94.226 594,645,745 3.065 82.840 1,600,000 - 1,699,999 302 1.110 95.336 497,719,577 2.566 85.405 1,700,000 - 1,799,999 267 0.981 96.317 466,099,594 2.403 87.808 1,800,000 - 1,899,999 174 0.639 96.957 321,150,376 1.655 89.463 1,900,000 - 1,999,999 144 0.529 97.486 280,251,599 1.445 90.908 2,000,000 and greater 684 2.514 100.000 1,763,922,909 9.092 100.000 Total 27,209 100.000% $19,400,356,543 100.000% ______(1) Improved single family residential parcels. Excludes condominiums and parcels with multiple family units. Source: California Municipal Statistics, Inc.

Appeals and Adjustments of Assessed Valuations

Under State 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 appropriate 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. 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. Such reductions are subject to yearly reappraisals and may be 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. See “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS – Article XIIIA of the California Constitution” herein.

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.

In addition to the above-described taxpayer appeals, county assessors may independently reduce assessed valuations based on changes in the market value of property, or for other factors such as the complete or partial destruction of taxable property caused by natural or man-made disasters such as earthquakes, floods, fire, drought or toxic contamination pursuant to relevant provisions of the State Constitution. See also “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS – Article XIIIA of the California Constitution” herein. Such reductions are subject to yearly reappraisals by the county assessor and may be adjusted back to their original values when real estate market conditions improve. Once property has regained its prior assessed value, adjusted for inflation, it once again is subject to the annual inflationary growth rate factor allowed under Article XIIIA.

No assurance can be given that property tax appeals or actions by the County Assessor in the future will not significantly reduce the assessed valuation of property within the District.

Secured Tax Charges and Delinquencies

The County levies (except for levies to support prior voter-approved indebtedness) and collects all property taxes for property falling within the County’s taxing boundaries. The following table shows the secured tax charges and delinquencies for fiscal years 2005-06 through 2014-15 in the District.

SECURED TAX CHARGES AND DELINQUENCY RATES Fiscal Years 2005-06 through 2014-15 Acalanes Union High School District

Tax Year Secured Tax Charge(1) Amount Delinquent June 30 Percent Delinquent June 30 2005-06 $5,241,860.47 $49,681.38 0.95% 2006-07 5,977,182.26 70,094.70 1.17 2007-08 5,663,548.43 105,924.29 1.87 2008-09 6,606,584.08 148,467.60 2.25 2009-10 6,985,404.06 129,965.83 1.86 2010-11 7,246,549.50 93,399.65 1.29 2011-12 7,642,649.78 78,511.14 1.03 2012-13 7,683,676.88 52,034.97 0.68 2013-14 8,927,136.61 61,526.28 0.69 2014-15 9,396,029.29 64,682.30 0.69 ______(1) Bond debt service levy only. Source: California Municipal Statistics, Inc.

Alternative Method of Tax Apportionment - “Teeter Plan”

The Board of Supervisors of the County has approved the implementation of 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. The Teeter Plan guarantees distribution of 100% of the general taxes levied to the taxing entities within the County, with the County administering any penalties and interest ultimately collected as prescribed in the California Revenue and Taxation Code. Under the Teeter Plan, the County apportions secured property taxes on a cash basis to local political subdivisions, including the District, for which the County acts as the tax- levying or tax-collecting agency. At the conclusion of each fiscal year, the County distributes 100% of any taxes delinquent as of June 30th to the respective taxing entities.

The Teeter Plan is applicable to all secured tax levies for which the County acts as the tax-levying or tax-collecting agency, or for which the County treasury is the legal depository of the tax collections. As adopted by the County, the Teeter Plan includes Mello-Roos Community Facilities Districts and special assessment districts which provide for accelerated judicial foreclosure of property for which assessments are delinquent.

The ad valorem property tax to be levied to pay the Accreted Value of the Bonds will be subject to the Teeter Plan, beginning in the first year of such levy. The District will receive 100% of the ad valorem property tax levied to pay the Bonds irrespective of actual delinquencies in the collection of the tax by the County.

The Teeter Plan is to remain in effect unless the Board of Supervisors of the County orders its discontinuance or unless, prior to the commencement of any fiscal year of the County (which commences on July 1), the Board of Supervisors receives a petition for its discontinuance joined in by resolutions adopted by at least two-thirds of the participating revenue districts in the County, in which event the Board of Supervisors is to order discontinuance of the Teeter Plan effective at the commencement of the subsequent fiscal year. If the Teeter Plan is discontinued subsequent to its implementation, only those secured property taxes actually collected would be allocated to political subdivisions (including the District) for which the County acts as the tax-levying or tax-collecting agency, but penalties and interest would be credited to the political subdivisions.

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Tax Rates

The following table summarizes the total ad valorem tax rates, as a percentage of assessed valuation, levied by all taxing entities in a typical tax rate areas (a “TRA”) within the boundaries of the District during fiscal years 2010-11 to 2015-16.

SUMMARY OF AD VALOREM TAX RATES Fiscal Years 2010-11 through 2015-16 (Tax Rate Area 9-000) Acalanes Union High School District

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 General (1) 1.0000% 1.0000% 1.0000% 1.0000% 1.0000% 1.0000% Bay Area Rapid Transit District .0031 .0041 .0043 .0075 .0045 .0026 East Bay Regional Park District .0084 .0071 .0051 .0078 .0085 .0067 Contra Costa Community College District .0133 .0144 .0087 .0133 .0252 .0220 Acalanes Union High School District .0311 .0333 .0333 .0361 .0350 .0332 Walnut Creek Elementary School District .0231 .0240 .0241 .0224 .0212 .0182 Total Tax Rate 1.0790% 1.0829% 1.0755% 1.0871% 1.0944% 1.0827% ______(1) 1% General Fund Levy; maximum rate for purposes other than paying debt service in accordance with Article XIIIA of the State Constitution. 2015-16 assessed valuation of TRA 9-000 is $6,677,183,171. Source: California Municipal Statistics, Inc.

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Principal Taxpayers

The following table lists the major taxpayers in the District based on their fiscal year 2015-16 local secured assessed valuations.

LARGEST LOCAL SECURED TAXPAYERS Fiscal Year 2015-16 Acalanes Union High School District

2015-16 % of Property Owner Primary Land Use Assessed Valuation Total(1) 1. First Walnut Creek Mutual Cooperatives – Rossmoor $330,192,801 1.13% 2. Second Walnut Creek Mutual Cooperatives – Rossmoor 254,054,545 0.87 3. Macerich Northwestern Associates Shopping Center 143,021,492 0.49 4. OG Property Owner LLC Residential Development 137,824,389 0.47 5. California Plaza LLC Office Building 104,853,943 0.36 6. Legacy III Walnut Creek III Office Building 100,510,000 0.35 7. Rreef America REIT II Corp. UUU Office Building 98,900,000 0.34 8. Property Calif. SCJLW One Corp. Office Building 79,905,789 0.27 9. Escuela Shopping Center LLC Shopping Center 77,631,806 0.27 10. ASN Bay Landing LLC Apartments 75,149,839 0.26 11. CSHC Pacific Plaza LLC Office Building 70,742,543 0.24 12. Tishman Speyer Archstone-Smith Apartments 69,409,774 0.24 13. Northwestern Mutual Life Insurance Office Building 67,488,768 0.23 14. Metropolitan Life Insurance Co. Office Building 66,031,536 0.23 15. PK II Walnut Creek Movie Theater/Commercial 59,083,046 0.20 16. Essex Walnut Owner LP Commercial/Apartments 55,925,280 0.19 17. Growers Square Inc. Office Building 54,074,171 0.19 18. Paragon Walnut Creek Apartment Apartments 53,935,801 0.19 19. Robert and Rosemary Lucas, Trust Office Building 52,970,000 0.18 20. BRE Properties Inc. Apartments 50,948,766 0.17 $2,002,654,289 6.88%

(1) 2015-16 local secured assessed valuation: $29,128,398,520. Source: California Municipal Statistics, Inc.

Statement of Direct and Overlapping Debt

Set forth on the following page is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. effective as of April 1, 2016, for debt issued as of March 18, 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.

The first column in the table names each public agency which has outstanding debt as of the date of the report and whose territory overlaps the District in whole or in part. The second column shows the percentage of each overlapping agency’s assessed value located within the boundaries of the District. This percentage, multiplied by the total outstanding debt of each overlapping agency (which is not shown

in the table) produces the amount shown in the third column, which is the apportionment of each overlapping agency’s outstanding debt to taxable property in the District.

DIRECT AND OVERLAPPING DEBT STATEMENT Acalanes Union High School District

2015-16 Assessed Valuation: $29,576,063,982

DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 4/1/16 Bay Area Rapid Transit District 4.911% $25,884,162 Contra Costa Community College District 17.224 74,430,932 Acalanes Union High School District 100.000 204,950,670(1) Lafayette School District 100.000 11,285,000 Moraga School District 100.000 5,635,000 Orinda Union School District 100.000 6,744,050 Walnut Creek School District 100.000 24,326,015 City of Lafayette 100.000 6,120,000 City of Orinda 100.000 9,685,000 East Bay Municipal Utility District Special District No. 1 0.002 147 East Bay Regional Park District 7.524 11,342,054 Pleasant Hill Recreation and Park District 10.831 2,832,848 Contra Costa County Community Facilities District No. 1991-1 5.429 27,416 California Statewide Community Development Authority Community Facilities District No. 2000-1 100.000 2,618,810 California Statewide Community Development Authority Orinda Wilder Project Community Facilities District 100.000 33,015,000 1915 Act Bonds 100.000 805,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $419,702,104

OVERLAPPING GENERAL FUND DEBT: Contra Costa County General Fund Obligations 17.158% $47,848,339 Contra Costa County Pension Obligation Bonds 17.158 40,650,734 Contra Costa Community College District Certificates of Participation 17.224 105,928 Town of Moraga Certificates of Participation 100.000 8,075,000 City of Orinda Certificates of Participation 100.000 7,945,000 City of Walnut Creek General Fund Obligations 57.858 1,857,963 San Ramon Valley Fire Protection District Certificates of Participation 0.004 553 Contra Costa Fire Protection District Pension Obligation Bonds 25.274 21,405,814 Moraga-Orinda Fire Protection District Pension Obligation Bonds 99.999 18,564,814 Pleasant Hill Recreation and Park District Certificates of Participation 10.831 217,162 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $146,671,307 Less: Contra Costa County obligations supported by revenue funds 13,619,797 TOTAL NET OVERLAPPING GENERAL FUND DEBT $133,051,510

OVERLAPPING TAX INCREMENT DEBT: $59,865,441

GROSS COMBINED TOTAL DEBT $626,238,852(2) NET COMBINED TOTAL DEBT $612,619,055 ______(1) Excludes the 2016 General Obligation Refunding Bonds to be delivered May 4, 2016 which will refund the 2004 General Obligation Refunding Bonds, Series A. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2015-16 Assessed Valuation: Direct Debt ($204,950,670) ...... 0.69% Total Direct and Overlapping Tax and Assessment Debt ...... 1.42% Gross Combined Total Debt ...... 2.12% Net Combined Total Debt ...... 2.07%

Ratios to Redevelopment Incremental Valuation ($1,451,112,893): Total Overlapping Tax Increment Debt ...... 4.13%

Source: California Municipal Statistics, Inc.

CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS

The Accreted Value of the Bonds is payable solely from the proceeds of an ad valorem property tax levied by the County for the payment thereof. See “THE BONDS – Security and Sources of Payment” herein. Articles XIIIA, XIIIB, XIIIC and XIIID of the Constitution, Propositions 98 and 111, 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 County to levy taxes on behalf of the District and the District to 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 County to levy taxes for payment of the Accreted Value of the Bonds. The tax levied by the County for payment of the Accreted Value of the Bonds was approved by the District’s voters in compliance with Article XIIIA, Article XIIIC, and all applicable laws.

Article XIIIA of the California Constitution

Article XIIIA (“Article XIIIA”) of the State Constitution limits the amount of ad valorem property taxes on real property to 1% of “full cash value” as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975-76 bill under “full cash value,” or thereafter, the appraised value of real property when purchased, newly constructed or a change in ownership has occurred after the 1975 assessment,” subject to exemptions in certain circumstances of property transfer or reconstruction. Determined in this manner, the full cash value is also referred to as the “base year value.” The full cash value is subject to annual adjustment to reflect increases, not to exceed 2% for any year, or decreases in the consumer price index or comparable local data, or to reflect reductions in property value caused by damage, destruction or other factors.

Article XIIIA has been amended to allow for temporary reductions of assessed value in instances where the fair market value of real property falls below the adjusted base year value described above. Proposition 8—approved by the voters in November of 1978—provides for the enrollment of the lesser of the base year value or the market value of real property, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property, or other factors causing a similar decline. In these instances, the market value is required to be reviewed annually until the market value exceeds the base year value, adjusted for inflation. Reductions in assessed value could result in a corresponding increase in the annual tax rate levied by the County to pay debt service on the Bonds. See “THE BONDS – Security and Sources of Payment” and “TAX BASE FOR PAYMENT OF BONDS” herein.

Article XIIIA requires a vote of two-thirds or more of the qualified electorate of a city, county, special district or other public agency to impose special taxes, while totally precluding the imposition of any additional ad valorem property, sales or transaction tax on real property. Article XIIIA exempts from the 1% tax limitation any taxes above that level required to pay debt service (a) on any indebtedness approved by the voters prior to July 1, 1978, or (b), as the result of an amendment approved by State voters on June 3, 1986, on any bonded indebtedness approved by two-thirds or more of the votes cast by the voters for the acquisition or improvement of real property on or after July 1, 1978, or (c) 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% or more of the votes cast on the proposition, but only if certain accountability measures are included in the proposition. The tax for payment of the Bonds falls within the exception described in (c) of the immediately preceding sentence. In addition, Article XIIIA requires

the approval of two-thirds or more of all members of the State legislature (the “Legislature”) to change any State taxes for the purpose of increasing tax revenues.

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). The 1% property tax is automatically levied by the relevant 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 or 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.

All taxable property value included in this Official Statement is shown at 100% of taxable value (unless noted differently) and all tax rates reflect the $1 per $100 of taxable value.

Both the United States Supreme Court and the State Supreme Court have upheld the general validity of Article XIIIA.

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 (the “SBE”) as part of a “going concern” rather than as individual pieces of real or personal property. Such State-assessed unitary and certain other property is allocated to counties by the 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. So long as the District is not a basic aid district, taxes lost through any reduction in assessed valuation will be compensated by the State as equalization aid under the State’s school financing formula. See “DISTRICT FINANCIAL INFORMATION” herein.

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. As amended, Article XIIIB defines:

(a) “change in the cost of living” with respect to school districts to mean the percentage change in State per capita income from the preceding year, and

(b) “change in population” with respect to a school district to mean the percentage change in the ADA of the school district from the preceding fiscal year.

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 pursuant to 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 such as the Bonds, (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.

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.

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 pursuant to Section 8.5 of Article XVI of the State Constitution. See “– Propositions 98 and 111” herein.

Article XIIIC and Article XIIID of the California Constitution

On November 5, 1996, the voters of the State approved Proposition 218, popularly known as the “Right to Vote on Taxes Act.” Proposition 218 added to the State 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 State 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 State Constitution and special taxes approved by a two-thirds vote under Article XIIIA, Section 4. 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.

The District does not impose any taxes, assessments, or property-related fees or charges which are subject to the provisions of Proposition 218. It does, however, receive a portion of the basic 1% ad valorem property tax levied and collected by the County pursuant to Article XIIIA of the State Constitution. 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.

Proposition 26

On November 2, 2010, voters of the State approved Proposition 26. Proposition 26 amends Article XIIIC of the State Constitution 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 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.

Propositions 98 and 111

On November 8, 1988, voters of the State 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 changed 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 the State general fund revenues as the percentage appropriated to such districts in the 1986-87 fiscal year, and (b) the amount actually appropriated to such districts from the State 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 changed how tax revenues in excess of the State appropriations limit are distributed. Any excess State tax revenues up to a specified amount are, instead of returned to taxpayers, transferred to K-14 school districts. Any such transfer to K-14 school districts is excluded from the appropriations limit for K-14 school districts and the K-14 school district appropriations limit for the next year is automatically increased by the amount of such transfer. These additional moneys enter the base funding calculation for K-14 school districts for subsequent years, creating further pressure on

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 can be transferred to K-14 school districts is 4% of the minimum State spending for education mandated by the Accountability Act.

Since the Accountability Act is unclear in some details, there can be no assurances that the Legislature or a court might not interpret the Accountability Act to require a different percentage of State general fund revenues to be allocated to K-14 school districts, or to apply the relevant percentage to the State’s budgets in a different way than is proposed in the State budget.

On June 5, 1990, the voters of the State approved Proposition 111 (Senate Constitutional Amendment No. 1) called the “Traffic Congestion Relief and Spending Limitation 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:

a. 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 State 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.

b. 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.

c. Exclusions from Spending Limit. Two exceptions were added to the calculation of appropriations which are subject to the Article XIIIB spending limit. First, all appropriations for “qualified capital outlay projects” as defined by the Legislature, are excluded. Second, 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 are excluded. These latter provisions were necessary to make effective the transportation funding package approved by the Legislature and the Governor, which was expected to raise over $15 billion in additional taxes from 1990 through 2000 to fund transportation programs.

d. 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.

e. 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 revenues. Under prior law, K-14 school districts were guaranteed the greater of (1) 40.9% of State general fund revenues (“Test 1”) 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 (“Test 2”). Under Proposition 111, K-14 school districts will receive the greater of (1) Test 1, (2) Test 2, or (3) a third test (“Test 3”), which will replace Test 2 in any year when growth in per capita State general fund revenues from the prior year is less than the annual growth in State per capita personal income. Under Test 3, K-14 school districts 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 Test 3 is used in any year, the difference between Test 3 and Test 2 will become a “credit” to K-14 school districts which will be paid in future years when State general fund revenue growth exceeds personal income growth.

Proposition 39

On November 7, 2000, State voters approved an amendment (commonly known as Proposition 39) to the State Constitution. This amendment (1) allows school facilities bond measures to be approved by 55% (rather than two-thirds) of the voters in local elections and permits property taxes to exceed the current 1% 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, including the District, community college districts, and county offices of education. As noted above, the State Constitution previously limited property taxes to 1% of the value of property, and 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% of the voters. These provisions require that such bonds may be issued only if the tax rate per $100,000 of taxable property value projected to be levied as the result of any single election would not exceed $60 (for a unified school district, such as the District), $30 (for an elementary or high school district), or $25 (for a community college district) when assessed valuation is projected to increase in accordance with Article XIIIA of the State Constitution. These requirements are not part of Proposition 39 and can be changed with a majority vote of both houses of the Legislature and approval by the Governor. See “ – Article XIIIA of the California Constitution” above.

Proposition 1A and Proposition 22

On November 2, 2004, State voters approved Proposition 1A, which amends 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-third approval of both houses of the Legislature or (iv) decrease Vehicle License Fee revenues without providing local governments with equal replacement funding. 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 amends 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, The Local Taxpayer, Public Safety, and Transportation Protection Act, approved by the voters of the State on November 2, 2010, prohibits the State from enacting new laws that require redevelopment agencies to shift funds to schools or other agencies and eliminates the State’s authority to shift property taxes temporarily during a severe financial hardship of the State. In addition, Proposition 22 restricts the State’s authority to use State fuel tax revenues to pay debt service on state transportation bonds, to borrow or change the distribution of state fuel tax revenues, and to use vehicle license fee revenues to reimburse local governments for state mandated costs. Proposition 22 impacts resources in the State’s general fund and transportation funds, the State’s main funding source for schools and community colleges, as well as universities, prisons and health and social services programs. According to an analysis of Proposition 22 submitted by the Legislative Analyst’s Office (the “LAO”) on July 15, 2010, the expected reduction in resources available for the State to spend on these other programs as a consequence of the passage of Proposition 22 was expected to be approximately $1 billion in fiscal year 2010-11, with an estimated immediate fiscal effect equal to approximately 1% of the State’s total general fund spending. The longer-term effect of Proposition 22, according to the LAO analysis, was expected to be an increase in the State’s general fund costs by approximately $1 billion annually for several decades. See also “DISTRICT FINANCIAL INFORMATION – State Dissolution of Redevelopment Agencies” herein.

Jarvis vs. Connell

On May 29, 2002, the State Court of Appeal for the Second District decided the case of Howard Jarvis Taxpayers Association, et al. v. Kathleen Connell (as Controller of the State). The Court of Appeal held that either a final budget bill, an emergency appropriation, a self-executing authorization pursuant to state statutes (such as continuing appropriations) or the State Constitution or a federal mandate is necessary for the State Controller to disburse funds. The foregoing requirement could apply to amounts budgeted by the District as being received from the State. To the extent the holding in such case would apply to State payments reflected in the District’s budget, the requirement that there be either a final budget bill or an emergency appropriation may result in the delay of such payments to the District if such required legislative action is delayed, unless the payments are self-executing authorizations or are subject to a federal mandate. On May 1, 2003, the State Supreme Court upheld the holding of the Court of Appeal, stating that the Controller is not authorized under State law to disburse funds prior to the enactment of a budget or other proper appropriation, but under federal law, the Controller is required, notwithstanding a budget impasse and the limitations imposed by State law, to timely pay those State employees who are subject to the minimum wage and overtime compensation provisions of the federal Fair Labor Standards Act.

Proposition 30

On November 6, 2012, voters of the State approved the Temporary Taxes to Fund Education, 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 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, for storage, use, or other consumption in the State. 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 $300,001 for single filers (over $500,000 but less than $600,001 for joint filers and over $340,000 but less than $408,001 for head-of-household filers), (ii) 2% for taxable income over $300,000 but less than $500,001 for single filers (over $600,000 but less than $1,000,001 for joint filers and over $408,000 but less than $680,001 for head-of-household filers), and (iii) 3% for taxable income over $500,000 for single filers (over $1,000,000 for joint filers and over $680,000 for head-of- household filers).

The revenues generated from the temporary tax increases will be included in the calculation of the Proposition 98 minimum funding guarantee for K-14 school districts. See “– Propositions 98 and 111” herein. From an accounting perspective, the revenues generated from the temporary tax increases are 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 are allocated quarterly, with 89% of such funds provided to schools districts and 11% provided to community college districts. The funds are 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.

Proposition 2

On November 4, 2014, voters approved the Rainy Day Budget Stabilization Fund Act (also known as “Proposition 2”). Proposition 2 is a legislatively-referred constitutional amendment which makes certain changes to State budgeting practices, including substantially revising the conditions under which transfers are made to and from the State’s Budget Stabilization Account (the “BSA”) established by the California Balanced Budget Act of 2004 (also known as Proposition 58).

Under Proposition 2, and beginning in fiscal year 2015-16 and each fiscal year thereafter, the State will generally be required to annually transfer to the BSA an amount equal to 1.5% of estimated State general fund revenues (the “Annual BSA Transfer”). Supplemental transfers to the BSA (a “Supplemental BSA Transfer”) are also required in any fiscal year in which the estimated State general fund revenues that are allocable to capital gains taxes exceed 8% of the total estimated general fund tax revenues. Such excess capital gains taxes—net of any portion thereof owed to K-14 school districts pursuant to Proposition 98—will be transferred to the BSA. Proposition 2 also increases the maximum size of the BSA to an amount equal to 10% of estimated State general fund revenues for any given fiscal year. In any fiscal year in which a required transfer to the BSA would result in an amount in excess of the 10% threshold, Proposition 2 requires such excess to be expended on State infrastructure, including deferred maintenance.

For the first 15-year period ending with the 2029-30 fiscal year, Proposition 2 provides that half of any required transfer to the BSA, either annual or supplemental, must be appropriated to reduce certain State liabilities, including making certain payments owed to K-14 school districts, repaying State interfund borrowing, reimbursing local governments for State mandated services, and reducing or prefunding accrued liabilities associated with State-level pension and retirement benefits. Following the initial 15-year period, the Governor and the Legislature are given discretion to apply up to half of any required transfer to the BSA to the reduction of such State liabilities. Any amount not applied towards such reduction must be transferred to the BSA or applied to infrastructure, as described above.

Proposition 2 changes the conditions under which the Governor and the Legislature may draw upon or reduce transfers to the BSA. The Governor does not retain unilateral discretion to suspend transfers to the BSA, nor does the Legislature retain discretion to transfer funds from the BSA for any reason, as previously provided by law. Rather, the Governor must declare a “budget emergency,” defined as an emergency within the meaning of Article XIIIB of the Constitution or a determination that estimated resources are inadequate to fund State general fund expenditures, for the current or ensuing fiscal year, at a level equal to the highest level of State spending within the three immediately preceding fiscal years. Any such declaration must be followed by a legislative bill providing for a reduction or transfer. Draws on the BSA are limited to the amount necessary to address the budget emergency, and no draw in any fiscal year may exceed 50% of the funds on deposit in the BSA unless a budget emergency was declared in the preceding fiscal year.

Proposition 2 also requires the creation of the Public School System Stabilization Account (the “PSSSA”) into which transfers will be made in any fiscal year in which a Supplemental BSA Transfer is required (as described above). Such transfer will be equal to the portion of capital gains taxes above the 8% threshold that would otherwise be paid to K-14 school districts as part of the minimum funding guarantee. A transfer to the PSSSA will only be made if certain additional conditions are met, as follows: (i) the minimum funding guarantee was not suspended in the immediately preceding fiscal year, (ii) the operative Proposition 98 formula for the fiscal year in which a PSSSA transfer might be made is “Test 1,” (iii) no maintenance factor obligation is being created in the budgetary legislation for the fiscal year in which a PSSSA transfer might be made, (iv) all prior maintenance factor obligations have been fully repaid, and (v) the minimum funding guarantee for the fiscal year in which a PSSSA transfer might be made is higher than the immediately preceding fiscal year, as adjusted for ADA growth and cost of living. Proposition 2 caps the size of the PSSSA at 10% of the estimated minimum guarantee in any fiscal year, and any excess funds must be paid to K-14 school districts. Reductions to any required transfer to the PSSSA, or draws on the PSSSA, are subject to the same budget emergency requirements described above. However, Proposition 2 also mandates draws on the PSSSA in any fiscal year in which the estimated minimum funding guarantee is less than the prior year’s funding level, as adjusted for ADA growth and cost of living.

Future Initiatives

Article XIIIA, Article XIIIB, Article XIIIC and Article XIIID of the State Constitution and Propositions 22, 26, 30, 39 and 98 were each adopted as measures that qualified for the ballot pursuant to 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.

DISTRICT FINANCIAL INFORMATION

The information in this section concerning the State funding of public education and the District’s finances is provided as supplementary information only, and it should not be inferred from the inclusion of this information in this Official Statement that the Accreted Value of the Bonds is payable from State revenues. The Bonds are payable solely from the proceeds of an ad valorem property tax which is required to be levied by the County in an amount sufficient for the payment thereof. See “THE BONDS – Security and Sources of Payment” herein.

State Funding of Education

School district revenues consist primarily of guaranteed State moneys, local property taxes and funds received from the State in the form of categorical aid under ongoing programs of local assistance. All State aid is subject to the appropriation of funds in the State’s annual budget.

Revenue Limit Funding. Previously, school districts operated under general purpose revenue limits established by the State Department of Education. In general, revenue limits were calculated for each school district by multiplying the ADA for such district by a base revenue limit per unit of ADA. Revenue limit calculations were subject to adjustment in accordance with a number of factors designed to provide cost of living adjustments (“COLAs”) and to equalize revenues among school districts of the same type. Funding of a school district’s revenue limit was provided by a mix of local property taxes and State apportionments of basic and equalization aid. Since fiscal year 2013-14, school districts have been funded based on uniform funding grants assigned to certain grade spans. See “—Local Control Funding Formula” herein.

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The following table shows the District’s ADA and the revenue limit per unit of ADA for fiscal years 2005-06 through 2012-13.

AVERAGE DAILY ATTENDANCE AND REVENUE LIMIT Fiscal Years 2005-06 through 2012-13 Acalanes Union High School District

Average Daily Base Revenue Limit Funded Base Revenue Year Attendance(1) per ADA(2) Limit per ADA(2) 2005-06 5,671 $5,920 $5,867 2006-07 5,603 6,379 6,379 2007-08 5,673 6,669 6,669 2008-09 5,475 7,049 6,496 2009-10 5,413 7,349 6,000 2010-11 5,353 7,320 6,005 2011-12 5,181 7,484 5,942 2012-13 5,141 7,727 6,083 ______(1) Reflects ADA as of the second principal reporting period (P-2 ADA), ending on or before the last attendance month prior to April 15 of each school year. An attendance month is each four week period of instruction beginning with the first day of school for any school district. ADA figures include enrollment from County operated programs. (2) Deficit revenue limit funding, when provided for in State budgetary legislation, reduced the revenue limit allocations received by school districts by applying a deficit factor to the base revenue limit for the given fiscal year, and resulted from an insufficiency of appropriation funds in the State budget to provide for State aid owed to school districts. The State’s practice of deficit revenue limit funding was most recently reinstated beginning in fiscal year 2008-09 and discontinued following the implementation of the LCFF (as defined herein). Source: Acalanes Union High School District.

Local Control Funding Formula. State Assembly Bill 97 (Stats. 2013, Chapter 47) (“AB 97”), enacted as part of the fiscal year 2013-14 State budget, establishes a new system for funding school districts, charter schools and county offices of education. Certain provisions of AB 97 were amended and clarified by Senate Bill 91 (Stats. 2013, Chapter 49) (“SB 91”).

The primary component of AB 97, as amended by SB 91, was the implementation of the Local Control Funding Formula (“LCFF”), which replaced the revenue limit funding system for determining State apportionments, as well as the majority of categorical program funding. State allocations are now provided on the basis of target base funding grants per unit of ADA (a “Base Grant”) assigned to each of four grade spans. Each Base Grant is subject to certain adjustments and add-ons, as discussed below. Full implementation of the LCFF is expected to occur over a period of several years. Beginning in fiscal year 2013-14, an annual transition adjustment has been calculated for each school district, equal to such district’s proportionate share of appropriations included in the State budget to close the gap between the prior-year funding level and the target allocation following full implementation of the LCFF. In each year, school districts have had the same proportion of their respective funding gaps closed, with dollar amounts varying depending on the size of a district’s funding gap.

The Base Grants per unit of ADA for each grade span are as follows: (i) $6,845 for grades K-3; (ii) $6,947 for grades 4-6; (iii) $7,154 for grades 7-8; and (iv) $8,289 for grades 9-12. Beginning in fiscal year 2013-14, and in each subsequent year, the Base Grants have been adjusted for COLAs by applying the implicit price deflator for government goods and services. Following full implementation of the LCFF, the provision of COLAs will be subject to appropriation for such adjustment in the annual State budget. The differences among Base Grants are linked to differentials in statewide average revenue limit rates by district type, and are intended to recognize the generally higher costs of education at higher grade

levels. See also “—State Budget” herein for the adjusted Base Grants provided by current State budgetary legislation.

The Base Grants for 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 early grades and the provision of career technical education in high schools. Following full implementation of the LCFF, and unless otherwise collectively bargained for, school districts serving students in grades K-3 must maintain an average class enrollment of 24 or fewer students in grades K-3 at each school site in order to continue receiving the adjustment to the K-3 Base Grant. Such school districts must also make progress towards this class size reduction goal in proportion to the growth in their funding over the implementation period. Additional add-ons are also provided to school districts that received categorical block grant funding pursuant to the Targeted Instructional Improvement and Home-to-School Transportation programs during fiscal year 2012-13.

School districts that serve students of limited English proficiency (“EL” students), students from low income families that are eligible for free or reduced priced meals (“LI” students) and foster youth are eligible to receive additional funding grants. Enrollment counts are unduplicated, such that students may not be counted as both EL and LI. Foster youth automatically meet the eligibility requirements for free or reduced priced meals. A supplemental grant add-on (each, a “Supplemental Grant”) is authorized for school districts that serve EL/LI students, equal to 20% of the applicable Base Grant multiplied by such districts’ percentage of unduplicated EL/LI student enrollment. School districts whose EL/LI populations exceed 55% of their total enrollment are eligible for a concentration grant add-on (each, a “Concentration Grant”) equal to 50% of the applicable Base Grant multiplied the percentage of such district’s unduplicated EL/LI student enrollment in excess of the 55% threshold.

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The following table shows a breakdown of the District’s ADA by grade span, total enrollment, and the percentage of EL/LI student enrollment, for fiscal years 2012-13 through 2015-16.

ADA, ENROLLMENT AND EL/LI ENROLLMENT PERCENTAGE Fiscal Years 2012-13 through 2015-16 Acalanes Union High School District Average Daily Attendance(1) Enrollment % of Fiscal Total EL/LI Year 9-12 Enrollment(2) Enrollment(2) 2012-13 5,141 5,349 n/a 2013-14 5,120 5,344 6.00% 2014-15 5,187 5,416 5.88 2015-16 5,296(3) 5,560 5.64 ______(1) Except for 2015-16, reflects ADA as of the second principal reporting period (P-2 ADA), ending on or before the last attendance month prior to April 15 of each school year. An attendance month is each four week period of instruction beginning with the first day of school for any school district. ADA figures includes enrollment from County operated programs. (2) Enrollment for fiscal year 2012-13 is reported as of the October report submitted to the California Basic Educational Data System (“CBEDS”). Fiscal years 2013-14 through 2015-16 reflect certified enrollment as of the fall census day (the first Wednesday in October), which is reported to the California Longitudinal Pupil Achievement Data System (“CALPADS”) in each school year and used to calculate each school district’s unduplicated EL/LI student enrollment. Adjustments may be made to the certified EL/LI counts by the California Department of Education. CALPADS figures exclude preschool and adult transitional students. For purposes of calculating Supplemental and Concentration Grants, a school district’s fiscal year 2013-14 percentage of unduplicated EL/LI students is expressed solely as a percentage of its total fiscal year 2013-14 total enrollment. For fiscal year 2014-15, the percentage of unduplicated EL/LI enrollment is based on the two-year average of EL/LI enrollment in fiscal years 2013-14 and 2014-15. Beginning in fiscal year 2015-16, a school district’s percentage of unduplicated EL/LI students will be based on a rolling average of such district’s EL/LI enrollment for the then-current fiscal year and the two immediately preceding fiscal years. Enrollment figures includes enrollment from County operated programs. (3) Projected. Source: Acalanes Union High School District.

For certain school districts that would have received greater funding levels under the prior revenue limit system, the LCFF provides for a permanent economic recovery target (“ERT”) add-on, equal to the difference between the revenue limit allocations such districts would have received under the prior system in fiscal year 2020-21, and the target LCFF allocations owed to such districts in the same year. To derive the projected funding levels, the LCFF assumes the discontinuance of deficit revenue limit funding, implementation of a COLA in fiscal years 2014-15 through 2020-21, and restoration of categorical funding to pre-recession levels. The ERT add-on will be paid incrementally over the implementing period of the LCFF. The District does not qualify for the ERT add-on.

The sum of a school district’s adjusted Base, Supplemental and Concentration Grants will be multiplied by such district’s P-2 ADA for the current or prior year, whichever is greater (with certain adjustments applicable to small school districts). This funding amount, together with any applicable ERT or categorical block grant add-ons, will yield a district’s total LCFF allocation. Generally, the amount of annual State apportionments received by a school district will amount to the difference between such total LCFF allocation and such district’s share of applicable local property taxes. Most school districts receive a significant portion of their funding from such State apportionments. As a result, decreases in State revenues may significantly affect appropriations made by the Legislature to school districts.

Certain schools districts, known as “basic aid” districts, have allocable local property tax collections that equal or exceed such districts’ total LCFF allocation, and result in the receipt of no State apportionment aid. Basic aid school districts receive only special categorical funding, which is deemed to

satisfy the “basic aid” requirement of $120 per student per year guaranteed by Article IX, Section 6 of the State Constitution. The implication for basic aid districts is that the legislatively determined allocations to school districts, and other politically determined factors, are less significant in determining their primary funding sources. Rather, property tax growth and the local economy are the primary determinants. The District does not currently qualify as a basic aid district.

Accountability. The State Board of Education has adopted regulations regarding the expenditure of supplemental and concentration funding. These regulations include a requirement that school districts increase or improve services for EL/LI students in proportion to the increase in funds apportioned to such districts on the basis of the number and concentration of such EL/LI students, as well as the conditions under which school districts can use supplemental or concentration funding on a school-wide or district- wide basis.

School districts are also required to adopt local control and accountability plans (“LCAPs”) disclosing annual goals for all students, as well as certain numerically significant student subgroups, to be achieved in eight areas of State priority identified by the LCFF. LCAPs may also specify additional local priorities. LCAPs must specify the actions to be taken to achieve each goal, including actions to correct identified deficiencies with regard to areas of State priority. LCAPs are required to be adopted every three years, beginning in fiscal year 2014-15, and updated annually thereafter. The State Board of Education has adopted a template LCAP for school districts.

Support and Intervention. AB 97, as amended by SB 91, establishes a new system of support and intervention to assist school districts meet the performance expectations outlined in their respective LCAPs. School districts must adopt their LCAPs (or annual updates thereto) in tandem with their annual operating budgets, and not later than five days thereafter submit such LCAPs or updates to their respective county superintendents of schools. On or before August 15 of each year, a county superintendent may seek clarification regarding the contents of a district’s LCAP (or annual update thereto), and the district is required to respond to such a request within 15 days. Within 15 days of receiving such a response, the county superintendent can submit non-binding recommendations for amending the LCAP or annual update, and such recommendations must be considered by the respective school district at a public hearing within 15 days. A district’s LCAP or annual update must be approved by the county superintendent by October 8 of each year if the superintendent determines that (i) the LCAP or annual update adheres to the State template, and (ii) the district’s budgeted expenditures are sufficient to implement the actions and strategies outlined in the LCAP.

A school district is required to receive additional support if its respective LCAP or annual update thereto is not approved, if the district requests technical assistance from its respective county superintendent, or if the district does not improve student achievement across more than one State priority for one or more student subgroups. Such support can include a review of a district’s strengths and weaknesses in the eight State priority areas, or the assignment of an academic expert to assist the district identify and implement programs designed to improve outcomes. Assistance may be provided by the California Collaborative for Educational Excellence, a state agency created by the LCFF and charged with assisting school districts achieve the goals set forth in their LCAPs. The State Board of Education has developed rubrics to assess school district performance and the need for support and intervention.

The State Superintendent of Public Instruction (the “State Superintendent”) is further authorized, with the approval of the State Board of Education, to intervene in the management of persistently underperforming school districts. The State Superintendent may intervene directly or assign an academic trustee to act on his or her behalf. In so doing, the State Superintendent is authorized (i) to modify a district’s LCAP, (ii) impose budget revisions designed to improve student outcomes, and (iii) stay or rescind actions of the local governing board that would prevent such district from improving student

outcomes; provided, however, that the State Superintendent is not authorized to rescind an action required by a local collective bargaining agreement.

Other State Sources. In addition to State allocations determined pursuant to the LCFF, the District receives other State revenues consisting primarily of restricted revenues designed to implement State mandated programs. Beginning in fiscal year 2013-14, categorical spending restrictions associated with a majority of State mandated programs were eliminated, and funding for these programs was folded into the LCFF. Categorical funding for certain programs was excluded from the LCFF, and school districts will continue to receive restricted State revenues to fund these programs.

Other Revenue Sources

Federal and Local Sources. The federal government provides funding for several of the District’s programs, including special education programs, programs under the Every Student Succeeds Act, and specialized programs such as Drug Free Schools, Innovative Strategies, and Vocational & Applied Technology. In addition, school districts may receive additional local revenues beyond local property tax collections, such as from leases and rentals, interest earnings, interagency services, developer fees (as discussed below), redevelopment revenues (as discussed below), foundation revenues, and other local sources.

Parcel Taxes. The District previously received revenue from a parcel tax approved by the voters of the District on March 5, 2005 (the “2005 Tax”) that expired in June 2011. On November 3, 2009 the voters of the District approved a $189 per parcel tax with no expiration date (the “2009 Tax”). The 2009 Tax replaced the 2005 Tax effective July 1, 2010. The 2009 Tax provided revenues that equaled approximately 12% of general fund revenues in fiscal year 2012-13 or $6,869,968, equaled approximately 12% of general fund revenues in fiscal year 2013-14 or $6,903,240, equaled approximately 11% of general fund revenues in fiscal year 2014-15 or $6,878,426, and is currently projected to be approximately 10% of such revenues in fiscal year 2015-16 or a projected $6,891,380.

On May 4, 2010 the District’s voters approved a second parcel tax, known as Measure A (the “2010 Tax”). The 2010 Tax was a five-year $112 per parcel tax that was approved as of July 1, 2010 and expired on June 30, 2015. On May 6, 2014, the voters of the District approved a $112 per parcel tax with no expiration (the “2014 Tax”). The 2014 Tax replaced the 2010 Tax effective July 1, 2015. The 2010 Tax accounted for 7% of the District’s general fund revenue in fiscal year 2012-13 or $3,699,214, equaled approximately 6% of such revenues in fiscal year 2013-14 or $3,717,130, and equaled approximately 6% of such revenues in fiscal year 2014-15 or $3,703,768. The 2014 Tax is projected to account for 6% of the District’s general fund revenues in fiscal year 2015-16 or a projected $3,710,743.

Combined, the 2009 Tax and the 2014 Tax are currently projected to account for 16% of general fund revenues in fiscal year 2015-16.

Foundations. The District is supported by four educational foundations; the Education Foundation of Orinda, the Moraga Education Foundation, the Lafayette Partners in Education and the Walnut Creek Education Foundation (collectively the “Foundations”). The Education Foundation of Orinda was founded in 1979 and provides support for Miramonte High School. The Moraga Education Foundation was formed in 1981 and provides support for Compolindo High School. The Lafayette Partners in Education was founded in 1980 and provides support for Acalanes High School. The Walnut Creek Education Foundation was founded in 2005 after the merger of the Walnut Greek Education Foundation and the Las Lomas Foundation and provides support for Las Lomas High School. In addition, at each high school, parent clubs provide direct financial support. The amounts contributed to the District by the Foundations are deposited into the general fund and earmarked for specific programs. The following table lists the annual contributions of the Foundations and direct support from parent clubs at each respective high school transferred to the District.

FOUNDATION CONTRIBUTIONS Fiscal Years 2004-05 through 2015-16 Acalanes Union High School District

Year Donations 2004-05 $1,000,000 2005-06 1,186,328 2006-07 1,371,587 2007-08 1,441,348 2008-09 1,012,356 2009-10 1,762,778 2010-11 1,857,938 2011-12 2,076,749 2012-13 2,191,116 2013-14 2,188,018 2014-15 2,332,945 2015-16(1) 2,674,355 ______(1) Projected Source: The Acalanes Union High School District.

Redevelopment Revenue. The District receives pass-through tax increment revenue (“Pass- through Revenue”) from the city of Layfayette. The District received $174,691 of such revenues for fiscal year 2012-13, $159,475 of such revenues for 2013-14, $185,302 of such revenues in fiscal year 2014-15 and currently projects that it will receive $135,000 of such revenues in fiscal year 2015-16. These amounts are deposited directly into the capital facilities fund and do not offset State apportionment. The District currently applies such amounts to facilities expenditures.

In addition, the District is entitled to receive certain tax offset revenue from the County as a part of certain redevelopment projects within the County (the “Tax Offset Revenues”). The Tax Offset Revenues received were deposited directly into the general fund of the District and offset the State apportionment received by the District. The District received $72,770 if Tax Offset Revenues in fiscal year 2012-13, $75,297 of Tax Offset Revenues in fiscal year 2013-14, $131,698 of such revenue in fiscal year 2014-15 and currently projects that it will receive $257,438 of such revenues in fiscal year 2015-16.

The District, however, can make no representations that the Pass-through Revenues and Tax Offset Revenues will continue to be received by the District in amounts consistent with prior years, particularly in light of the elimination of redevelopment agencies by the State.

State Dissolution of Redevelopment Agencies

On December 30, 2011, the State Supreme Court issued its decision in the case of California Redevelopment Association v. Matosantos (“Matosantos”), finding ABx1 26, a trailer bill to the fiscal year 2011-12 State budget, to be constitutional. As a result, all redevelopment agencies in the State ceased to exist as a matter of law on February 1, 2012. The Court in Matosantos also found that ABx1 27, a companion bill to ABx1 26, violated the State Constitution, as amended by Proposition 22. See “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING DISTRICT REVENUES AND APPROPRIATIONS – Proposition 1A and Proposition 22” herein. ABx1 27 would have permitted redevelopment agencies to continue operations provided their establishing cities or counties agreed to make specified payments to school districts and county offices of education, totaling $1.7 billion statewide.

ABx1 26 was modified by Assembly Bill No. 1484 (Chapter 26, Statutes of 2011-12) (“AB 1484”), which, together with ABx1 26, is referred to herein as the “Dissolution Act.” The Dissolution Act provides that all rights, powers, duties and obligations of a redevelopment agency under the California Community Redevelopment Law that have not been repealed, restricted or revised pursuant to ABx1 26 will be vested in a successor agency, generally the county or city that authorized the creation of the redevelopment agency (each, a “Successor Agency”). All property tax revenues that would have been allocated to a redevelopment agency, less the corresponding county auditor-controller’s cost to administer the allocation of property tax revenues, are now allocated to a corresponding Redevelopment Property Tax Trust Fund (“Trust Fund”), to be used for the payment of pass-through payments to local taxing entities, and thereafter to bonds of the former redevelopment agency and any “enforceable obligations” of the Successor Agency, as well as to pay certain administrative costs. The Dissolution Act defines “enforceable obligations” to include bonds, loans, legally required payments, judgments or settlements, legal binding and enforceable obligations, and certain other obligations.

Among the various types of enforceable obligations, the first priority for payment is tax allocation bonds issued by the former redevelopment agency; second is revenue bonds, which may have been issued by the host city, but only where the tax increment revenues were pledged for repayment and only where other pledged revenues are insufficient to make scheduled debt service payments; third is administrative costs of the Successor Agency, not to exceed $250,000 in any year, to the extent such costs have been approved in an administrative budget; then, fourth tax revenues in the Trust Fund in excess of such amounts, if any, will be allocated as residual distributions to local taxing entities in the same proportions as other tax revenues. Moreover, all unencumbered cash and other assets of former redevelopment agencies will also be allocated to local taxing entities in the same proportions as tax revenues. Notwithstanding the foregoing portion of this paragraph, the order of payment is subject to modification in the event a Successor Agency timely reports to the State Controller and the Department of Finance that application of the foregoing will leave the Successor Agency with amounts insufficient to make scheduled payments on enforceable obligations. If the county auditor-controller verifies that the Successor Agency will have insufficient amounts to make scheduled payments on enforceable obligations, it shall report its findings to the State Controller. If the State Controller agrees there are insufficient funds to pay scheduled payments on enforceable obligations, the amount of such deficiency shall be deducted from the amount remaining to be distributed to taxing agencies, as described as the fourth distribution above, then from amounts available to the Successor Agency to defray administrative costs. In addition, if a taxing agency entered into an agreement pursuant to Health and Safety Code Section 33401 for payments from a redevelopment agency under which the payments were to be subordinated to certain obligations of the redevelopment agency, such subordination provisions shall continue to be given effect.

As noted above, the Dissolution Act expressly provides for continuation of pass-through payments to local taxing entities, including to the District. Per statute, 100% of contractual and statutory

two percent pass-throughs, and 56.7% of statutory pass-throughs authorized under the Community Redevelopment Law Reform Act of 1993 (AB 1290, Chapter 942, Statutes of 1993), are restricted to educational facilities without offset against LCFF apportionments by the State. Only 43.3% of AB 1290 pass-throughs to the District are offset against State aid so long as the District uses the moneys received for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance as provided under Education Code Section 42238(h).

ABX1 26 states that in the future, pass-throughs shall be made in the amount “which would have been received . . . had the redevelopment agency existed at that time,” and that the County Auditor-Controller shall “determine the amount of property taxes that would have been allocated to each redevelopment agency had the redevelopment agency not been dissolved pursuant to the operation of ABX1 26 using current assessed values . . . and pursuant to statutory pass-through formulas and contractual agreements with other taxing agencies.”

Successor Agencies continue to operate until all enforceable obligations have been satisfied and all remaining assets of the Successor Agency have been disposed of. AB 1484 provides that once the debt of the Successor Agency is paid off and remaining assets have been disposed of, the Successor Agency shall terminate its existence and all pass-through payment obligations shall cease.

The District can make no representations as to the extent to which its apportionments from the State may be offset by the future receipt of residual distributions or from unencumbered cash and assets of former redevelopment agencies or any other surplus property tax revenues pursuant to the Dissolution Act.

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Budget Process

State Budgeting 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. The budget process has been further amended by subsequent bills, including Senate Bill 97, which became law on September 26, 2013 (requiring budgets to include sufficient funds to implement LCAPs), SB 858 (as defined herein), which became law on June 20, 2014 (requiring budgets’ ending fund balances to exceed the minimum recommended reserve for economic uncertainties), and Assembly Bill 2585, which became State law on September 9, 2014 (eliminating the dual budget cycle option for school districts).

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. 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, and will determine if the budget allows the district to meet its current obligations, if the budget is consistent with a financial plan that will enable the district to meet its multi-year financial commitments, whether the budget includes the expenditures necessary to implement a LCAP, and whether the budget’s ending fund balance exceeds the minimum recommended reserve for economic uncertainties.

On or before August 15, the county superintendent will approve, conditionally 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 county 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 school district for public inspection. No later than September 22, the county superintendent must notify the State Superintendent of Public Instruction of all school districts whose budget may be disapproved.

A school district whose budget has been disapproved 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 school district budgets and not later than October 8, must 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. No later than October 8, the county superintendent must notify the State Superintendent of Public Instruction of all school districts whose budget has been disapproved. Until a school district’s budget is approved, the school 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 Financial Reports. 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 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 current fiscal year or the 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 the two subsequent fiscal years.

The District has never had an adopted budget disapproved by the County Superintendent of Schools. The District elected to report a “qualified” certification in its first interim financial report for fiscal year 2003-04. In its next interim financial report, and for all reporting periods thereafter, the District has reported a “positive” certification.

General Fund Budgeting. The table on the following page summarizes the District’s general fund adopted budgets for fiscal years 2011-12 through 2015-16, audited ending results for fiscal years 2011-12 through 2014-15, and projected results for fiscal year 2015-16.

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GENERAL FUND BUDGET AND ACTUAL RESULTS FOR Fiscal Years 2011-12 through 2015-16 Acalanes Union High School District 2011-12 2011-12 2012-13 2012-13 2013-14 2013-14 2014-15 2014-15 2015-16 2015-16 Adopted Audited Adopted Audited Adopted Audited Adopted Audited Adopted Projected Budget(1) Actuals(1) Budget(2) Actuals(1) Budget(1) Actuals(1) Budget(3) Actuals(1) Budget(4) Totals(5) REVENUES LCFF/Revenue Limit Sources(6 ) State Apportionment $1,345,910 $1,094,886 -- $1,715,991 $4,542,015 $4,695,794 $5,463,215 $4,374,882 $7,014,645 $4,933,989 Local Sources 31,410,379 31,771,287 $32,020,717 30,958,710 31,634,176 33,060,195 32,596,656 36,725,334 36,630,809 39,777,123 Total LCFF/Revenue Limit Sources 32,756,289 32,866,173 32,020,717 32,674,701 36,176,191 37,755,989 38,059,871 41,100,216 43,645,454 44,711,112

Federal Revenue 1,887,936 2,006,712 881,616 982,926 1,079,073 1,028,123 1,247,738 1,125,862 1,390,735 1,385,575 Other State Revenue 4,040,733 4,791,206 4,541,252 5,133,364 2,513,227 2,739,769 1,369,787 2,252,056 3,956,661 4,532,799 Other Local Revenue 16,422,529 17,543,398 16,676,556 17,320,915 17,260,293 17,510,871 17,554,342 17,276,475 17,775,508 18,652,405 TOTAL REVENUES 55,107,487 57,207,489 54,120,141 56,111,906 57,028,784 59,034,752 58,231,738 61,754,609 66,768,358 69,281,891 EXPENDITURES Certificated Salaries 25,592,569 25,815,613 26,619,726 26,198,093 26,357,598 28,391,821 28,741,183 28,776,367 29,214,343 29,551,876 Classified Salaries 7,726,589 7,953,437 7,850,564 8,046,184 7,694,203 8,593,581 8,698,171 8,639,826 8,784,529 8,707,838 Employee Benefits 11,636,891 11,474,423 12,412,667 12,001,965 13,092,939 13,065,551 14,511,752 13,859,385 15,370,458 14,838,949 Books & Supplies 1,775,003 1,896,586 1,750,145 1,645,476 2,539,926 1,943,888 2,674,704 2,029,461 2,216,468 2,684,169 Services & Other Operating Expenses 6,063,560 6,239,318 6,050,275 7,190,508 7,947,869 8,733,717 9,010,287 9,245,038 9,100,674 9,533,807 Capital Outlay 11,588 40,127 -- 85,598 7,000 41,188 5,500 601,822 250,000 319,300 Other Outgo(7) (75,000) 301,230 25,000 231,071 25,000 (250,000) (250,000) (250,000) -- -- TOTAL EXPENDITURES 52,731,200 53,720,734 54,708,377 55,398,895 57,664,535 60,519,746 63,391,597 62,901,899 64,936,472 65,635,939 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,376,287 3,486,755 (588,236) 713,011 (635,751) (1,484,994) (5,159,859) (1,147,290) 1,831,886 3,645,952 OTHER FINANCING SOURCES/(USES) Operating Transfers In 150,000 400,000 300,000 900,004 ------Operating Transfers Out (1,171,864) (1,258,769) (1,188,614) (1,286,012) (1,361,864) (210,605) (241,200) (129,596) (281,000) (158,000) TOTAL OTHER FINANCING (1,021,864) (858,769) (888,614) (386,008) (1,361,864) (210,605) (241,200) (129,596) (281,000) (158,000) SOURCES/(USES) Net change in Fund Balance 1,354,423 2,627,986 (1,476,850) 327,003 (1,997,615) (1,695,599) (5,401,059) (1,276,886) 1,550,886 3,487,952 FUND BALANCE AT BEGINNING OF YEAR 9,327,232 9,327,232 11,955,218 11,955,218 12,282,221 12,282,221 10,586,622 10,586,622 9,309,737 9,309,737 FUND BALANCE AT END OF YEAR $10,681,655 $11,955,218 $10,478,368 $12,282,221 $10,284,606 $10,586,622 $5,185,563 $9,309,736 $10,860,623 $12,797,689

(1) From the District’s Comprehensive Audited Financial Statements for fiscal years 2011-12 through 2014-15. (2) From the District’s 2011-12 Unaudited Actuals approved by the Governing Board on September 5, 2012. (3) From the District’s 2013-14 Unaudited Actuals approved by the Governing Board on September 3, 2014. (4) From the District’s 2014-15 Unaudited Actuals approved by the Governing Board on September 2, 2015. (5) From the District’s 2015-16 Second Interim Financial Report approved by the Governing Board on March 2, 2016. (6) Beginning with the first interim financial report for fiscal year 2013-14, this category of funds is coded as “LCFF/Revenue Limit Sources.” (7) The categories Other Outgo (excluding Transfers of Indirect Costs) and Other Outgo (Transfers of Indirect Costs) were combined for comparison purposes. Source: Acalanes Union High School District.

Accounting Practices

The accounting policies 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 State Education Code, is to be followed by all State school districts. Revenues are recognized in the period in which they become both measurable and available to finance expenditures of the current fiscal period. Expenditures are recognized in the period in which the liability is incurred.

Comparative Financial Statements

The District’s audited financial statements for the year ended June 30, 2015, are attached for reference as “APPENDIX B” hereto. Audited financial statements for the District for the fiscal year ended June 30, 2015, and prior fiscal years are on file with the District and available for public inspection at the Acalanes Union High School District, 1212 Pleasant Hill Road, Lafayette, CA 94549, telephone: (925) 280-3900, 94960.

The table on the following page reflects the District’s audited general fund revenues, expenditures and fund balances for fiscal years 2010-11 through 2014-15.

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STATEMENT OF GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Years 2010-11 through 2014-15 Acalanes Union High School District 2010-11 2011-12 2012-13 2013-14 2014-15 Audited Audited Audited Audited Audited Actual Actual Actual Actual Actual REVENUES Revenues LCFF /Revenue Limit Sources(1) LCFF (1) $41,100,216 State Apportionment $1,481,431 $1,094,886 $1,715,991 $4,695,794 Federal sources 1,125,862 Local Sources 31,316,373 31,771,287 30,958,710 33,060,195 Other State sources 3,713,307 Total Revenue Limit Sources 32,797,804 32,866,173 32,674,701 37,755,989 Other local sources 17,276,475 Total Revenue 63,215,860 Federal Revenue 1,978,257 2,006,712 982,926 1,028,123 Other State Revenue 4,591,756 4,791,206 5,133,364 2,739,769 Expenditures Other Local Revenue 17,533,098 17,543,398 17,320,915 17,510,871 Current TOTAL REVENUES 56,900,915 57,207,489 56,111,906 59,034,752 Instruction 37,211,755 Instruction-related activities: EXPENDITURES Instructional supervision and administration 4,252,754 Certificated Salaries 25,723,476 25,815,613 26,198,093 28,391,821 Instructional library, media, and technology 1,583,679 Classified Salaries 7,704,190 7,953,437 8,046,184 8,593,581 School site administration 1,568,485 Employee Benefits 10,983,971 11,474,423 12,001,965 13,065,551 Pupil services: Books & Supplies 1,699,191 1,896,586 1,645,476 1,943,888 Home-to-school transportation 1,001,928 Services & Other Operating Expenses 6,145,885 6,239,318 7,190,508 8,733,717 Food services -- Capital Outlay 25,933 40,127 85,598 41,188 All other pupil services 5,710,029 Other Outgo 183,798 301,230 231,071 (250,000) General administration: TOTAL EXPENDITURES 52,466,444 53,720,734 55,398,895 60,519,746 Central data processing 671,418 All other general administration 3,575,455 Excess (Deficiency) of Revenues Over Expenditures 4,434,471 3,486,755 713,011 (1,484,994) Plant services 6,831,793 Facility acquisition and maintenance 584,834 OTHER FINANCING SOURCES/(USES) Ancillary services 1,235,116 Operating Transfers In 446,569 400,000 900,004 -- Community services 127,126 Operating Transfers Out (1,218,250) (1,258,769) (1,286,012) (210,605) Enterprise activities 8,778 TOTAL OTHER FINANCING SOURCES/(USES) (771,681) (858,769) (386,008) (210,605) Debt Service: Principal -- Net change in Fund Balance 3,662,790 2,627,986 327,003 (1,695,599) Interest and others -- FUND BALANCE AT BEGINNING OF YEAR 5,664,442 9,327,232 11,955,218 12,282,221 Total Expenditures 64,363,150 Excess (Deficiency) of Revenues Over (1,147,290) FUND BALANCE AT END OF YEAR $9,327,232 $11,955,218 $12,282,221 $10,586,622 Expenditures

Other Financing Sources (Uses) Transfer in -- Transfer out (129,596) Other uses -- Net Financing Sources (Uses) (129,596)

NET CHANGE IN FUND BALANCE (1,276,886) (1) Beginning in fiscal year 2013-14, this category is coded Local Control Funding Formula. Fund Balances – Beginning 10,586,622 Source: The Acalanes Union High School District Fund Balances - Ending $9,309,736 .

State Budget

The following information concerning the State’s budgets has been obtained from publicly available information which the District believes to be reliable; however, the District does not guarantee the accuracy or completeness of this information and has not independently verified such information. Furthermore, it should not be inferred from the inclusion of this information herein that the Accreted Value of the Bonds is payable from the general fund of the District. The Bonds are payable solely from the proceeds of an ad valorem property tax required to be levied by the County in an amount sufficient for the payment thereof.

2015-16 Budget. On June 24, 2015, the Governor signed into law the State budget for fiscal year 2015-16 (the “2015-16 Budget”). The following information is drawn from the State Department of Finance’s summary of the 2015-16 Budget, as well as a summary prepared by the Legislative Analyst’s Office (the “LAO”).

For fiscal year 2014-15, the 2015-16 Budget projects total State general fund revenues of $111.3 billion, and total State general fund expenditures of $114.5 billion. The 2015-16 Budget projects that the State will end the 2014-15 fiscal year with a general fund ending balance of $2.4 billion and total reserves of $3 billion (including $1.5 billion in the traditional general reserve and $1.6 billion in the BSA). For fiscal year 2015-16, the 2015-16 Budget projects total State general fund revenues of $115 billion and total expenditures of $115.4 billion, leaving the State with a year-end general fund balance of approximately $2 billion. The 2015-16 Budget projects total year-end reserves of $4.6 billion, including $1.1 billion in the traditional general fund reserve and $3.5 billion in the BSA.

As a result of higher than anticipated State revenues, the 2015-16 Budget includes revised estimates to the minimum funding guarantees for fiscal years 2013-14 and 2014-15. The 2013-14 minimum guarantee is revised upward to $58.9 billion, an increase of $612 million over the estimate included in the 2014-15 State budget. For fiscal year 2014-15, the 2015-16 Budget revises the minimum guarantee upward to $66.3 billion, an increase of $5.4 billion over the estimate included in the 2014-15 State budget.

The 2015-16 Budget sets the Proposition 98 minimum funding guarantee for fiscal year 2015-16 at $68.4 billion, including $49.4 billion of support from the State general fund. This represents a year-to- year increase of $2.1 billion over the revised level for fiscal year 2014-15. For K-12 education, the 2015- 16 Budget provides total Proposition 98 funding of $59.5 billion, including $43.2 billion from the State general fund. Under the 2015-16 Budget, K-12 per-pupil spending in fiscal year 2015-16 is $9,942, an increase of $1,011 (or 11%) from the prior year.

Significant features of the 2015-16 Budget related to K-12 education include the following:

• Local Control Funding Formula – An increase of $6 billion in Proposition 98 funding to continue the transition to the LCFF, bringing total LCFF funding to $52 billion. This represents a 13% year-to-year increase, and is projected to close the remaining funding implementation gap between the prior year and the LCFF target levels by approximately 52%. As a result, the adjusted 2015-16 Base Grants are as follows: (i) $7,820 for grades K-3, (ii) $7,189 for grades 4-6, (iii) $7,403 for grades 7-8, and (iv) $8,801 for grades 9-12. See also “– State Funding of Education – Local Control Funding Formula” herein. • Career Technical Education (CTE) – The 2015-16 Budget establishes the Career Technical Education Incentive Grant Program for local education agencies to establish new or expand high-quality CTE programs. The 2015-16 Budget provides $400 million in fiscal year 2015-

16 to fund the program, as well as $300 million and $200 million for fiscal years 2016-17 and 2017-18, respectively. The program allocates this funding into three pools for large, medium-sized and small applicants, based on ADA in grades 7-12. Specifically, 4% of total funding is available for agencies with less than 140 ADA, 8% is available for agencies with ADAs between 140 and 550, and the remainder for agencies with more than 550 ADA. Local education agencies will be required to provide local-to-state matching funds in each of the three years. When determining grant recipients, the State Department of Education will be required to give priority to those agencies that are establishing new programs, serve a large number of EL, LI and foster youth students, serve pupil groups with above-average dropout rates, or are located in areas of high unemployment. • K-14 Deferrals – $992 million to eliminate all outstanding apportionment deferrals, including $897 million for K-12 education, consistent with a revenue-based trigger mechanism included in the 2014-15 State budget. • Maintenance Factor/Settle Up Payments – The 2015-16 Budget reduces the outstanding Proposition 98 maintenance factor to $772 million. The maintenance factor is created in years where the State provides less growth in K-14 funding than growth in the State economy by implementing “Test 3” or suspends the guarantee entirely. The 2015-16 Budget also provides $256 million in “settle up” payments to repay obligations created in years where revenue projections understate the minimum funding guarantee. • Educator Support – An increase of $500 million in one-time Proposition 98 funding for educator support, including beginning teacher and administrator support, mentoring and professional development. These funds will be allocated to local educational agencies in an equal amount per certificated staff and are available for expenditure over the next three fiscal years. • Special Education – $60.1 million of Proposition 98 funding, including $50.1 million of ongoing funding and $10 million of one-time funds, to implement selected programmatic changes in special education services. The changes are intended to implement recommendations issued by a State taskforce formed in 2013, as well as to make targeted investments designed to improve the delivery of services and outcomes for disabled students. • K-12 High- Speed Internet Access – An increase of $50 million in one-time Proposition 98 funding to support additional internet connectivity and infrastructure. • Mandates – An increase of $3.2 billion in one-time Proposition 98 funding to reduce a backlog of unpaid reimbursement claims to K-12 local educational agencies for the cost of State-mandated programs. After accounting for this payment, the outstanding K-12 mandate backlog is approximately $1.2 billion. • Adult Education – $500 million to fund the Adult Education Block Grant program. Prior budgetary legislation mandated the establishment of regional adult education consortia composed of school districts, community college districts and certain other stakeholders to coordinate the delivery of adult education services. Up to $375 million is available to be distributed directly to K-12 school districts and county offices of education to match amounts that have been spent on adult education within the past two years. The balance will be apportioned directly to consortia for distribution to their member agencies. Beginning in fiscal year 2016-17, all funds for adult education will be apportioned directly to consortia. The 2015-16 Budget also provides $25 million in one-time Proposition 98 funding to assist consortia develop or update data systems necessary to evaluate the effectiveness of their programs, as well as to fund State-level activities to develop consistent data policies and data collection procedures.

• Categorical Programs – The 2015-16 Budget provides $40 million to fund a 1.02% COLA for select K-12 categorical programs. • Emergency Repair Program – $273 million to make the final payment towards funding the Emergency Repair Program (“ERP”), which was created as the result of a legal settlement in 2004 to provide local educational agencies funding for critical repair projects. • Basic Skills Pilot Program – $10 million of Proposition 98 funding to support a pilot program designed to incentivize high schools, community college districts and the California State University system to coordinate the delivery of basic skills instruction to incoming CSU students. • Special Education – $67 million to fund a package of special-education related activities, including $52 million in ongoing funding and $15 million in one-time funds. For additional information regarding the 2015-16 Budget, see the State Department of Finance website at www.dof.ca.gov and the LAO’s website at www.lao.ca.gov. However, the information presented on such websites is not incorporated herein by reference.

Governor’s Proposed 2016-17 Budget. On January 7, 2016, the Governor released his proposed State budget for fiscal year 2016-17 (the “Proposed Budget”). The following information is drawn from the Department of Finance’s summary of the Proposed Budget.

The Proposed Budget assumes, for fiscal year 2015-16, total general fund revenues of $121.2 billion and total expenditures of $116.1 billion. The State is projected to end the 2015-16 fiscal year with a general fund surplus of $4.2 billion. The Proposed Budget also projects a year-end balance in BSA of $4.5 billion. For fiscal year 2016-17, the Proposed Budget assumes total general fund revenues of $125.8 billion and authorizes expenditures of $122.6 billion. The State is projected to end the 2016-17 fiscal year with a general fund surplus of $2.2 billion. The Proposed Budget projects that the BSA balance will grow by approximately $1.6 billion as a result of projected increases to State revenues. The Proposed Budget also authorizes an additional deposit of $2 billion, bringing the total balance of the BSA to $8 billion by the end of fiscal year 2016-17.

The Proposed Budget provides for retroactive increases to the Proposition 98 minimum funding guarantee for fiscal years 2014-15 and 2015-16 of $400 million and $800 million, respectively. For fiscal year 2016-17, the Proposed Budget sets the minimum funding guarantee at $71.6 billion. Ongoing Proposition 98 per-pupil expenditures in fiscal year 2016-17 are set at $10,591, reflecting an increase of $368 above the revised prior-year level.

Significant proposals or adjustments with respect to K-12 education funding include the following:

• Local Control Funding Formula. $2.8 billion of Proposition 98 funding to school districts and charter schools to continue the implementation of the LCFF, an increase of 5.4% from the prior fiscal year. This amount is estimated to close approximately 50% of the remaining funding gap between fiscal year 2013-14 funding levels and the LCFF target rates. As a result, the Proposed Budget projects total LCFF formula implementation to be at 95%. The Proposed Budget also provides $1.7 million to support a COLA to LCFF funding levels for county offices of education.

• Early Education Block Grant. $1.6 billion to fund a block grant for local educational agencies that combines existing Proposition 98 grant funding for three statewide programs: the State Preschool Program, Transitional Kindergarten and the Preschool Quality Rating and

Improvement System Grant. Block grant funds will be distributed based on factors such population and equity amongst schools with large populations of disadvantaged children. However, no local educational agency will receive less funding under this block grant than it received under prior funding models. • Discretionary Funding – Approximately $1.2 billion in one-time Proposition 98 funding for school districts, charter schools and county offices of education to be used at local discretion. These funds will also offset any applicable reimbursements claims for the cost of State- mandated programs. • Charter Schools – An increase of $61 million in Proposition 98 funding to support a projected growth in charter school ADA. The Proposed Budget also provides $20 million of one-time funds to support operational startup costs for new charter schools in 2016 and 2017, to offset the loss of federal funding previously available for this purpose. • Categorical Programs –$22.9 million in Proposition 98 funding to support a 0.47% COLA for select K-12 categorical programs that remain outside the LCFF. • Special Education – A decrease of $15.5 million in Proposition 98 funding for special education, as a result of a projected decrease in special education ADA. • Proposition 39 – Passed by voters in November 2012, Proposition 39 increases State corporate tax revenues and requires that, for a five-year period starting in fiscal year 2013-14, a portion of these additional revenues be used allocated to local education agencies to improve energy efficiency and expand the use of alternative energy in public buildings. The Proposed Budget allocates $365.4 million of such funds to support school district and charter school energy efficiency projects. • Truancy and Dropout Prevention – Proposition 47, approved by voters in November 2014, reduces penalties for certain non-serious and non-violent property and drug offenses, and requires that State expenditures savings resulting from these reduced penalties by invested into K-12 truancy and dropout prevention. The Proposed Budget allocates $7.3 million of such funding to K-12 local education agencies. • Behavioral Supports – $30 million in one-time Proposition 98 funding to assist local educational agencies provide coordinated academic and behavioral support systems. For additional information regarding the Proposed Budget, see the State Department of Finance website at www.dof.ca.gov. However, the information presented on such website is not incorporated herein by reference.

Future Actions. The District cannot predict what actions will be taken in the future by the State legislature and the Governor to address changing State revenues and expenditures. The District also cannot predict the impact such actions will have on State revenues available in the current or future years for education. The State budget will be affected by national and State economic conditions and other factors over which the District will have no control. Certain actions or results could produce a significant shortfall of revenue and cash, and could consequently impair the State’s ability to fund schools. State budget shortfalls in future fiscal years may also have an adverse financial impact on the financial condition of the District. However, the obligation to levy ad valorem property taxes upon all taxable property within the District for the payment of Accreted Value of the Bonds would not be impaired.

ACALANES UNION HIGH SCHOOL DISTRICT

The information in this section concerning the operations of the District and the District’s operating budget are provided as supplementary information only, and it should not be inferred from the inclusion of this information in this Official Statement that the Accreted Value of the Bonds is payable from the general fund of the District. The Bonds are payable solely from the proceeds of an ad valorem property tax required to be levied by the County in an amount sufficient for the payment thereof. See “THE BONDS – Security and Sources of Payment” herein.

Introduction

The District is located in the western portion of Contra Costa County (the “County”) approximately 20 miles east of San Francisco. The District operates four comprehensive high schools and one alternative high school and encompasses an area of approximately 80 square miles and has an estimated population of 111,346. The District’s projected average daily attendance for fiscal year 2015- 16 is 5,296. The 2015-16 assessed valuation of the area served by the District is $29,576,063,982.

Administration

District Board. The District is governed by a five-member Governing Board, each of which is elected to a four-year term. Elections for positions to the Governing Board are held every two years, alternating between two and three available positions. The members of the Governing Board, together with their office and the date their term expires, are listed in the following table:

Board Member Office Term Expires

Richard Whitmore President December 2016 Nancy Kendzierski Clerk December 2018 Kathy Coppersmith Member December 2016 Susie Epstein Member December 2018 Bob Hockett Member December 2018 ______Source: Acalanes Union High School District.

The Superintendent of the District is responsible for administering the affairs of the District in accordance with the policies of the Governing Board. John Nickerson, Ed.D. is the District’s Superintendent and Julie Bautista is the Chief Business Official.

Brief biographies of the Superintendent and the Chief Business Official follow:

John Nickerson, Ed.D., Superintendent. Dr. Nickerson was promoted to Acalanes Union High School District Superintendent on February 2, 2011. Dr. Nickerson began his tenure with the District in August of 1996 as a classroom teacher. Subsequently, he worked as an associate principal, principal and the Associate Superintendent, Educational Services. Dr. Nickerson has twenty-two years of experience working in schools, seventeen of which are in the California public education system. The last 13 years of Dr. Nickerson’s career have been in management positions. Dr. Nickerson earned a B.A. in economics

from Harvard University. He received a M.A. from University of California, Berkeley and his doctorate from the University of La Verne.

Julie Bautista, Chief Business Official. Ms. Bautista was promoted to Chief Business Official to the District on July 1, 2015. Ms. Bautista has 20 years of experience in education and is in her 12th year with the District, having previously served as the Controller and Director of Fiscal Services. Ms. Bautista holds a B.A. in Business Administration from Golden Gate University.

Average Daily Attendance and Enrollment

The current student-teacher ratio in the District is 24:1 in grades 9-12. The following table shows the District’s average daily attendance and enrollment over the last 17 years and a projection for the current fiscal year.

AVERAGE DAILY ATTENDANCE Fiscal Years 1998-99 through 2015-16 Acalanes Union High School District

Average Daily Year Attendance(1) Enrollment(2) 1998-99 4,845 5,065 1999-00 5,049 5,280 2000-01 5,150 5,375 2001-02 5,320 5,514 2002-03 5,507 5,744 2003-04 5,553 5,785 2004-05 5,663 5,906 2005-06 5,671 5,903 2006-07 5,603 5,832 2007-08 5,673 5,905 2008-09 5,475 5,714 2009-10 5,413 5,654 2010-11 5,353 5,589 2011-12 5,181 5,403 2012-13 5,141 5,349 2013-14 5,120 5,344 2014-15 5,187 5,416 2015-16 5,296(3) 5,560 ______(1) Except for fiscal year 2015-16, reflects ADA as of the second principal reporting period (P-2 ADA), ending on or before the last attendance month prior to April 15 of each school year. ADA figures includes enrollment from County operated programs. (2) Enrollment for fiscal years 1998-99 through 2012-13 is reported as of the October report submitted to the California Basic Educational Data System (“CBEDS”). Fiscal years 2013-14 through 2015-16 reflect certified enrollment as of the fall census day (the first Wednesday in October), which is reported to the California Longitudinal Pupil Achievement Data System (“CALPADS”) in each school year and used to calculate each school district’s unduplicated EL/LI student enrollment. Adjustments may be made to the certified EL/LI counts by the California Department of Education. CALPADS figures exclude preschool and adult transitional students. Enrollment figures include enrollment from County operated programs. (3) Projected. Source: The Acalanes Union High School District.

Labor Relations

The District currently employs approximately 319 full-time equivalent certificated and management employees and 162 full time equivalent classified employees. In addition, the District employs 274 part-time faculty and staff (including daily substitute teachers and hourly classified

substitutes). These employees, except management and some part-time employees, are represented by the two bargaining units as noted below:

BARGAINING UNITS Acalanes Union High School District

Number of Employees In Contract Labor Organization Bargaining Unit Expiration Date Acalanes Education Association 304 06/30/2015(1) Service Employees International Union 172 06/30/2014(1) ______(1) Members of this bargaining unit are working under the terms of their expired contract while a new contract is negotiated. Source: The Acalanes Union High School District.

District Retirement Programs

The information set forth below regarding the District’s retirement 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, Financial Advisor or the Underwriter.

STRS. All full-time certificated employees, as well as certain classified employees, are members of the State Teachers’ Retirement System (“STRS”). STRS provides retirement, disability and survivor benefits to plan members and beneficiaries under a defined benefit program (the “STRS Defined Benefit Program”). The STRS Defined Benefit Program is funded through a combination of investment earnings and statutorily set contributions from three sources: employees, employers, and the State. Benefit provisions and contribution amounts are established by State statutes, as legislatively amended from time to time.

Prior to fiscal year 2014-15, and unlike typical defined benefit programs, neither the employee, employer nor State contribution rates to the STRS Defined Benefit Program varied annually to make up funding shortfalls or assess credits for actuarial surpluses. In recent years, the combined employer, employee and State contributions to the STRS Defined Benefit Program have not been sufficient to pay actuarially required amounts. As a result, and due to significant investment losses, the unfunded actuarial liability of the STRS Defined Benefit Program has increased significantly in recent fiscal years. In September 2013, STRS projected that the STRS Defined Benefit Program would be depleted in 31 years assuming existing contribution rates continued, and other significant actuarial assumptions were realized. In an effort to reduce the unfunded actuarial liability of the STRS Defined Benefit Program, the State recently passed the legislation described below to increase contribution rates.

Prior to July 1, 2014, K-14 school districts were required by such statutes to contribute 8.25% of eligible salary expenditures, while participants contributed 8% of their respective salaries. On June 24, 2014, the Governor signed AB 1469 (“AB 1469”) into law as a part of the State’s fiscal year 2014-15 budget. AB 1469 seeks to fully fund the unfunded actuarial obligation with respect to service credited to members of the STRS Defined Benefit Program before July 1, 2014 (the “2014 Liability”), within 32 years, by increasing member, K-14 school district and State contributions to STRS. Commencing July 1, 2014, the employee contribution rate will increase over a three-year phase-in period in accordance with the following schedule:

MEMBER CONTRIBUTION RATES STRS (Defined Benefit Program)

STRS Members Hired Prior to STRS Members Hired Effective Date January 1, 2013 After January 1, 2013 July 1, 2014 8.150% 8.150% July 1, 2015 9.200 8.560 July 1, 2016 10.250 9.205 ______Source: AB 1469.

Pursuant to AB 1469, K-14 school districts’ contribution rate will increase over a seven-year phase-in period in accordance with the following schedule:

K-14 SCHOOL DISTRICT CONTRIBUTION RATES STRS (Defined Benefit Program)

Effective Date K-14 school districts July 1, 2014 8.88% July 1, 2015 10.73 July 1, 2016 12.58 July 1, 2017 14.43 July 1, 2018 16.28 July 1, 2019 18.13 July 1, 2020 19.10 ______Source: AB 1469.

Based upon the recommendation from its actuary, for fiscal year 2021-22 and each fiscal year thereafter the STRS Teachers’ Retirement Board (the “STRS Board”), is required to increase or decrease the K-14 school districts’ contribution rate to reflect the contribution required to eliminate the remaining 2014 Liability by June 30, 2046; provided that the rate cannot change in any fiscal year by more than 1% of creditable compensation upon which members’ contributions to the STRS Defined Benefit Program are based; and provided further that such contribution rate cannot exceed a maximum of 20.25%. In addition to the increased contribution rates discussed above, AB 1469 also requires the STRS Board to report to the State Legislature every five years (commencing with a report due on or before July 1, 2019) on the fiscal health of the STRS Defined Benefit Program and the unfunded actuarial obligation with respect to service credited to members of that program before July 1, 2014. The reports are also required to identify adjustments required in contribution rates for K-14 school districts and the State in order to eliminate the 2014 Liability.

The District’s contributions to STRS were $2,067,984 in fiscal year 2010-11, $2,077,269 in fiscal year 2011-12, $2,122,848 in fiscal year 2012-13, $2,297,342 in fiscal year 2013-14 and $2,537,026 in fiscal year 2014-15. The District has projected $3,133,132 for its contribution to STRS for fiscal year 2015-16.

The State also contributes to STRS, currently in an amount equal to 4.891% of teacher payroll for fiscal year 2015-16. The State’s contribution reflects a base contribution rate of 2.017%, and a supplemental contribution rate that will vary from year to year based on statutory criteria. Pursuant to AB 1469, the State contribution rate will increase over a three year period to a total of 6.328% in fiscal year 2016-17. Based upon the recommendation from its actuary, for fiscal year 2017-18 and each fiscal year thereafter, the STRS Board is required, with certain limitations, to increase or decrease the State’s contribution rates to reflect the contribution required to eliminate the unfunded actuarial accrued liability attributed to benefits in effect before July 1, 1990. In addition, the State is currently required to make an annual general fund contribution up to 2.5% of the fiscal year covered STRS member payroll to the Supplemental Benefit Protection Account (the “SBPA”), which was established by statute to provide supplemental payments to beneficiaries whose purchasing power has fallen below 85% of the purchasing power of their initial allowance.

PERS. Classified employees working four or more hours per day are members of the Public Employees’ Retirement System (“PERS”). PERS provides retirement and disability benefits, annual cost- of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by the State statutes, as legislatively amended from time to time. PERS operates a number of retirement plans including the Public Employees Retirement Fund (“PERF”). PERF is a multiple- employer defined benefit retirement plan. In addition to the State, employer participants at June 30, 2014 included 1,580 public agencies and 1,513 K-14 school districts. PERS acts as the common investment and administrative agent for the member agencies. The State and K-14 school districts (for “classified employees,” which generally consist of school employees other than teachers) are required by law to participate in PERF. Employees participating in PERF generally become fully vested in their retirement benefits earned to date after five years of credited service. One of the plans operated by PERS is for K-14 school districts throughout the State (the “Schools Pool”).

Contributions by employers to the PERS Schools Pool are based upon an actuarial rate determined annually and contributions by plan members vary based upon their date of hire. The District is currently required to contribute to PERS at an actuarially determined rate, which is 11.847% of eligible salary expenditures for fiscal year 2015-16 and 13.888% in fiscal year 2016-17. Participants enrolled in PERS prior to January 1, 2013 contribute 7% of their respective salaries, while participants enrolled after January 1, 2013 contribute at an actuarially determined rate, which is 6% of their respective salaries for fiscal year 2015-16 and fiscal year 2016-17. See “—California Public Employees’ Pension Reform Act of 2013” herein.

The District’s contributions to PERS were $725,193 in fiscal year 2010-11, $755,677 in fiscal year 2011-12, $794,960 in fiscal year 2012-13, $843,960 in fiscal year 2013-14 and $953,359 in fiscal year 2014-15. The District has projected $971,642 for its contribution to PERS for fiscal year 2015-16.

State Pension Trusts. Each of STRS and PERS issues a separate comprehensive financial report that includes financial statements and required supplemental information. Copies of such financial reports may be obtained from each of STRS and PERS as follows: (i) STRS, P.O. Box 15275, Sacramento, California 95851-0275; (ii) PERS, P.O. Box 942703, Sacramento, California 94229-2703. Moreover, each of STRS and PERS maintains a website, as follows: (i) STRS: www.calstrs.com; (ii) PERS: www.calpers.ca.gov. However, the information presented in such financial reports or on such websites is not incorporated into this Official Statement by any reference.

Both STRS and PERS have substantial statewide unfunded liabilities. The amount of these unfunded liabilities will vary depending on actuarial assumptions, returns on investments, salary scales and participant contributions. The following table summarizes information regarding the actuarially-determined accrued liability for both STRS and PERS. Actuarial assessments are “forward- looking” information that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future. Actuarial assessments will change with the future experience of the pension plans. FUNDED STATUS STRS (Defined Benefit Program) and PERS (Dollar Amounts in Millions) (1) Fiscal Years 2010-11 through 2014-15 STRS Value of Value of Trust Unfunded Trust Unfunded Fiscal Accrued Assets Liability Assets Liability Year Liability (MVA)(2) (MVA)(2)(3) (AVA)(4) (AVA)(4) 2010-11 $208,405 $147,140 $68,365 $143,930 $64,475 2011-12 215,189 143,118 80,354 144,232 70,957 2012-13 222,281 157,176 74,374 148,614 73,667 2013-14 231,213 179,749 61,807 158,495 72,718 2014-15 241,753 180,633 72,626 165,553 76,200

PERS Value of Value of Trust Unfunded Trust Unfunded Fiscal Accrued Assets Liability Assets Liability Year Liability (MVA)(2) (MVA)(2) (AVA)(4) (AVA)(4) 2010-11 $58,358 $45,901 $12,457 $51,547 $6,811 2011-12 59,439 44,854 14,585 53,791 5,648 2012-13 61,487 49,482 12,005 56,250 5,237 2013-14 65,600 56,838 8,761 --(5) --(5) 2014-15(6) 73,325 56,814 16,511 --(5) --(5)

(1) Amounts may not add due to rounding. (2) Reflects market value of assets. (3) Excludes assets allocated to the SBPA reserve. (4) Reflects actuarial value of assets. (5) Effective for the June 30, 2014 actuarial valuation, PERS no longer uses an actuarial value of assets. (6) On April 19, 2016, the PERS Finance & Administration Committee approved the K-14 school district contribution rate for fiscal year 2016-17 and released certain actuarial information to be incorporated into the June 30, 2015 actuarial valuation to be released in summer 2015. Source: PERS Schools Pool Actuarial Valuation; STRS Defined Benefit Program Actuarial Valuation.

According to the STRS Defined Benefit Program Actuarial Valuation, as of June 30, 2015, the future revenue from contributions and appropriations for the STRS Defined Benefit Program was projected to be sufficient to finance its obligations. This finding reflects the scheduled contribution increases specified in AB 1469 and is based on the valuation assumptions and the valuation policy adopted by the STRS Board.

In recent years, the PERS Board of Administration (the “PERS Board”) has taken several steps, as described below, intended to reduce the amount of the unfunded accrued actuarial liability of its plans, including the Schools Pool.

On March 14, 2012, the PERS Board voted to lower the PERS’ rate of expected price inflation and its investment rate of return (net of administrative expenses) (the “PERS Discount Rate”) from 7.75% to 7.5%. As one consequence of such decrease, the annual contribution amounts paid by PERS member public agencies, including the District, have been increased by 1 to 2% for miscellaneous plans and by 2 to 3% for safety plans beginning in fiscal year 2013-14. On February 18, 2014, the PERS Board voted to keep the PERS Discount Rate unchanged at 7.5%. On November 17, 2015, the PERS Board voted to reduce the PERS Discount Rate to 6.5% over a period of 20 years. This change could result in increased contributions over time from both employers and employees.

On April 17, 2013, the PERS Board approved new actuarial policies aimed at returning PERS to fully-funded status within 30 years. The policies include a rate smoothing method with a 30-year fixed amortization period for gains and losses, a five-year increase of public agency contribution rates, including the contribution rate at the onset of such amortization period, and a five year reduction of public agency contribution rates at the end of such amortization period. The new actuarial policies were first included in the June 30, 2014 actuarial valuation and were implemented with respect the State, K-14 school districts and all other public agencies in fiscal year 2015-16.

Also, on February 20, 2014, the PERS Board approved new demographic assumptions reflecting (i) expected longer life spans of public agency employees and related increases in costs for the PERS system and (ii) trends of higher rates of retirement for certain public agency employee classes, including police officers and firefighters. The new actuarial assumptions will first be reflected in the Schools Pool in the June 30, 2015 actuarial valuation. The increase in liability due to the new assumptions will be amortized over 20 years with increases phased in over five years, beginning with the contribution requirement for fiscal year 2016-17. The new demographic assumptions affect the State, K-14 school districts and all other public agencies.

The District can make no representations regarding the future program liabilities of STRS, or whether the District will be required to make additional contributions to STRS in the future above those amounts required under AB 1469. The District can also provide no assurances that the District’s required contributions to PERS will not increase in the future.

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 (the “Reform Act”), which makes changes to both STRS and PERS, most substantially affecting new employees hired after January 1, 2013 (the “Implementation Date”). For STRS participants hired after the Implementation Date, the Reform Act changes the normal retirement age by increasing the eligibility for the 2% age factor (the age factor is the percent of final compensation to which an employee is entitled to for each year of service) from age 60 to 62 and increasing the eligibility of the maximum age factor of 2.4% from age 63 to 65. Similarly, for non-safety PERS participants hired after the Implementation Date, the Reform Act changes the normal retirement age by increasing the eligibility for the 2% age factor from age 55 to 62 and increases the eligibility requirement for the maximum age factor of 2.5% to age 67. Among the other changes to PERS and STRS, the Reform Act also: (i) requires all new participants enrolled in PERS and STRS after the Implementation Date to contribute at least 50% of the total annual normal cost of their pension benefit each year as determined by an actuary, (ii) requires STRS and PERS to determine the final compensation amount for employees based upon the highest annual compensation earnable averaged over a consecutive 36-month period as the basis for calculating retirement benefits for new participants enrolled after the Implementation Date (previously 12 months for STRS members who retire with 25 years of service), and (iii) caps “pensionable compensation” for new participants enrolled after the Implementation Date at 100% of the federal Social Security contribution (to be adjusted annually based on changes to the Consumer Price Index for all Urban Consumers) and benefit base for members participating in Social Security or 120% for members not participating in social security (to be adjusted

annually based on changes to the Consumer Price Index for all Urban Consumers), while excluding previously allowed forms of compensation under the formula such as payments for unused vacation, annual leave, personal leave, sick leave, or compensatory time off.

GASB Statement Nos. 67 and 68. On June 25, 2012, GASB approved Statements Nos. 67 and 68 (“Statements”) with respect to pension accounting and financial reporting standards for state and local governments and pension plans. The new Statements, No. 67 and No. 68, replace GASB Statement No. 27 and most of Statements No. 25 and No. 50. The changes impact the accounting treatment of pension plans in which state and local governments participate. Major changes include: (1) the inclusion of unfunded pension liabilities on the government’s balance sheet (currently, such unfunded liabilities are typically included as notes to the government’s financial statements); (2) more components of full pension costs being shown as expenses regardless of actual contribution levels; (3) lower actuarial discount rates being required to be used for underfunded plans in certain cases for purposes of the financial statements; (4) closed amortization periods for unfunded liabilities being required to be used for certain purposes of the financial statements; and (5) the difference between expected and actual investment returns being recognized over a closed five-year smoothing period. In addition, according to GASB, Statement No. 68 means that, for pensions within the scope of the Statement, a cost-sharing employer that does not have a special funding situation is required to recognize a net pension liability, deferred outflows of resources, deferred inflows of resources related to pensions and pension expense based on its proportionate share of the net pension liability for benefits provided through the pension plan. Because the accounting standards do not require changes in funding policies, the full extent of the effect of the new standards on the District is not known at this time. The reporting requirements for pension plans took effect for the fiscal year beginning July 1, 2013 and the reporting requirements for government employers, including the District, took effect for the fiscal year beginning July 1, 2014.

For fiscal year ending June 30, 2015, the District’s proportionate share of the net STRS pension liability was $36,262,600. As of such date, the District’s proportionate share of the net PERS pension liability was $8,821,675. For more information, see Note 11 to the fiscal year 2014-15 audited financial statements of the District included as APPENDIX B hereto.

Other Post-Employment Benefits

Plan Description. The District administers a single-employer defined benefit healthcare plan (the “Plan”). The plan provides five years of postemployment healthcare, dental, and vision benefits (to eligible employees up to the age of 65 (the “Post-Employment Benefits”). To be eligible to receive these Post-Employment Benefits, retirees must be age 55 and have completed a minimum of 10 years of continuous service to the District immediately prior to retirement. As of March 1, 2016, 224 employees were receiving Post-Employment Benefits and 496 active plan members.

The Plan provides for the District to contribute 100 percent of the cost of health insurance premiums for retirees. The District makes a monthly contribution toward medical coverage not to exceed $746 for single party coverage or $1,493 for two-party coverage. Benefit provisions are established by the District’s Governing Board.

Funding Policy. Expenditures are made on a pay-as-you-go basis, with additional amounts to prefund benefits as determined annually by the Governing Board. The District recognized expenditures of $810,967 for the Post-Employment Benefits during fiscal year 2012-13, $1,069,248 for Post- Employment Benefits during fiscal year 2013-14 ($300,000 of which was deposited into the Trust (defined below)), $1,299,881 for Post-Employment Benefits during fiscal year 2014-15 ($635,000 of which was deposited into the Trust (defined below)) and currently projects a contribution of $853,000 for fiscal year 2015-16 ($691,040 of which is projected to be contributed into the Trust (defined below)).

In addition, whenever savings are realized based on budgeted healthcare expenditures, the Governing Board may direct the transfer of the savings to a trust held by California Employers’ Retiree Benefit Trust (The “Trust”) for the benefit of the covered employees. For fiscal year 2015-16, the Governing Board has approved a deposit equal to 2% of total payroll into the Trust.

As of December 31, 2015 the market value of assets in the Trust was $1,237,641

Actuarial Study. The District has implemented Governmental Accounting Standards Board Statement #45, Accounting and Financial Reporting by Employers for Postemployment Benefit Plans Other Than Pension Plans, pursuant to which the District has commissioned and received several actuarial studies of its outstanding liabilities with respect to the Post-Employment Benefits. The District received a study by Total Compensation, Inc., on October 29, 2015 (the “Actuarial Study”) with respect to its liability in connection with such post-employment health care benefits. The Actuarial Study, dated as of July 1, 2015, determined that the actuarial accrued liability with respect to the District’s Post- Employment Benefits is $16,003,366, and that the actuarial present value of total projected benefits is $23,065,403. The Actuarial Study also concluded that the annual required contribution (“ARC”) for the year beginning July 1, 2015 is $1,700,284. In calculating the ARC, the actuary took into account the $1,153,617 actuarial value of plan assets in the Trust as of June 30, 2015. The ARC is the amount that would be necessary to fund the value of future benefits earned by current employees during each fiscal year (the “Normal Cost”) and the amount necessary to amortize the UAAL, in accordance with the GASB Statements Nos. 43 and 45; the ARC is expected to increase each year based on covered payroll.

Net OPEB Obligation. As of June 30, 2015, the District recognized a long-term obligation (the “Net OPEB Obligation”) of $2,575,226 with respect to its accrued liability for the Post-Employment Benefits. The Net OPEB Obligation is based on the District’s contributions towards the ARC during fiscal year 2014-15. The Net OPEB Obligation was calculated based on a prior actuarial study of the Post-Employment Benefits.

For more information regarding the District’s Post-Employment Benefits, see “APPENDIX B – THE DISTRICT’S 2014-15 AUDITED FINANCIAL STATEMENTS – Note 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB).”

Social Security. As established by Federal law, all public sector employees who are not members of their employer’s existing retirement system (STRS or PERS) must be covered by social security or an alternative plan. The District has elected to use Social Security as its alterative plan. Contributions made by the District and participating employees vest immediately. The District is required to contribute 6.2% of each employee’s gross earnings. In addition, each employee is required to contribute 6.2% of his or her gross earnings.

Insurance

The District is a member of four Joint Powers Authorities (“JPAs”) for insurance purposes; the Contra Costa County Schools Insurance Group (CCCSIG) for workers’ compensation insurance; the East Bay Schools Insurance Group (EBSIG) for property and liability insurance, the Schools Excess Liability Fund (SELF) for excess liability insurance, and the Schools Self-insurance of Contra Costa County (SSICCC) for health benefits. The relationships between the District and the JPAs are such that the JPAs are not component units of the District for financial reporting purposes.

The JPAs arrange for and/or provide coverage for their members. The JPAs are governed by a board consisting of a representative from each member district. The boards control the operations of the JPAs, including selection of management and approval of operating budgets independent of any influence

by the member districts beyond their representation on the 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 JPA.

Based upon prior claims experience, the District believes that it has adequate insurance coverage.

District Debt Structure

Schedule of Long-Term Debt. A schedule of changes in long-term debt for the year ended June 30, 2015, is shown below:

Balance Balance July 1, 2014 Additions Deductions June 30, 2015 Government Activities: General obligation bonds $187,096,666 $46,252,402 $23,031,163 $210,317,905 Unamortized premium 4,053,522 1,680,000 514,707 5,218,815 Unamortized discount (716,712) -- (77,745) (638,967) Accreted interest 20,892,822 784,163 16,552,996 5,123,989 Total general obligation bonds 211,326,298 48,716,565 40,021,121 220,021,742 Compensated absences 459,192 -- 60,313 398,879 Net OPEB obligations 2,716,050 -- 140,824 2,575,226 Net pension liability 56,493,022 -- 11,408,747 45,084,275 Total $270,994,562 $48,716,565 $51,631,005 $268,080,122

Source: The Acalanes Union High School District.

Bond Anticipation Notes. On November 26, 2014, the District issued the 2014 General Obligation Bond Anticipation Notes (the “2014 Notes”) in an aggregate principal amount of $15,000,000. The 2014 Notes mature on August 1, 2017. The 2014 Notes were issued to finance the repair, upgrading, construction and equipping of certain District sites and facilities, in anticipation of the issuance of bonds pursuant to the 2008 Authorization. The 2014 Notes are general obligations of the District payable from (i) proceeds of a future sale of such bonds, (ii) renewal notes, or (iii) other funds of the District lawfully available for the purpose of repaying the 2014 Notes, including State grants. Following the application and investment of the proceeds of the Bonds as described in “THE BONDS – Application and Investment of Bond Proceeds” the 2014 Notes will be defeased and the obligation of the District to make payments of principal thereof and interest thereon will terminate. See “THE BONDS – Application and Investment of Bond Proceeds” herein.

General Obligation Bonds. At an election held on November 4, 1997, the voters of the District approved the issuance of not-to-exceed $48,000,000 of general obligation bonds of the District (the “1997 Authorization”). The District has issued the entirety of bonds authorized by the 1997 Authorization. At an election held on November 5, 2002, the voters of the District approved the issuance of not-to-exceed $44,000,000 of general obligation bonds of the District (the “2002 Authorization”). The District has issued the entirety of bonds authorized by the 2002 Authorization. Pursuant to the 2008 Authorization, the voters have approved the issuance of $93,000,000 of bonds. The District has also issued nine series of general obligation refunding bonds to refinance then-outstanding portions of the bonds issued pursuant to the 1997 Authorization, 2002 Authorization and 2008 Authorization. The following table summarizes the prior bond issuances of the District, not including the Bonds.

SUMMARY OF OUTSTANDING BONDED DEBT Acalanes Union High School District Initial Principal Currently Issuance Principal Amount Outstanding Date of Delivery 2002 Refunding Bonds $27,999,940.25 $2,277,647.30 October 28, 2002 2004 Refunding Bonds, Series A(1) 26,835,000.00 2,210,000.00 April 6, 2004 Election of 2008 Series A Bonds 29,999,817.55 26,133,816.90 March 30, 2010 Election of 2008 Series B Bonds 37,999,105.55 24,321,804.50 July 20, 2011 2012 Refunding Bonds 19,410,000.00 19,130,000.00 May 3, 2012 2012 Refunding Bonds, Series B (2015 Cross Over) 24,720,000.00 24,720,000.00 October 2, 2012 2013 Refunding Bonds 45,915,000.00 44,515,000.00 May 30, 2013 2014 Refunding Bonds 31,252,401.65 31,252,401.65 December 10, 2014 2016 Refunding Bonds(2) 14,120,000.00 14,120,000.00 May 4, 2016 ______(1) Does not include the principal amount of the bonds to be refunded from proceeds of the 2016 Refunding Bonds. (2) The 2016 Refunding Bonds are being issued on a delayed delivery basis and consequently, the settlement date for such bonds is May 4, 2016. Source: The Acalanes Union High School District.

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General Obligation Bonds. The following table shows the total debt service with respect to the District’s outstanding general obligation bonded debt.

COMBINED GENERAL OBLIGATION BOND DEBT SERVICE SCHEDULE Acalanes Union High School District

2012 Refunding, 2004 Series B Refunding Election of 2012 Bonds The 2016 2002 Refunding Bonds, Election of 2008 2008 Refunding (2015 2013 Refunding 2014 Refunding Refunding Bonds Series A Series A Bonds Series B Bonds Bonds Crossover) Bonds Bonds Bonds Total (August 1) Debt Service Debt Service(1) Debt Service Debt Service Debt Service Debt Service Debt Service Debt Service Debt Service(2) The Bonds Debt Service

2016 $2,255,000.00 $2,631,796.88 -- -- $765,200.00 $1,051,092.50 $4,116,653.12 -- $170,616.67 $10,990,359.17 2017 2,260,000.00 ------765,200.00 1,047,192.50 4,882,914.26 -- 2,776,000.00 11,731,306.76 2018 2,270,000.00 ------765,200.00 1,047,692.50 5,684,198.80 -- 2,762,500.00 12,529,591.30 2019 ------2,765,200.00 1,051,745.00 6,560,274.70 -- 2,754,500.00 13,131,719.70 2020 ------2,735,200.00 2,919,657.50 5,657,051.20 -- 2,781,500.00 14,093,408.70 2021 ------2,713,200.00 3,293,812.50 6,257,770.00 -- 2,806,500.00 15,071,282.50 2022 ------2,698,800.00 3,716,762.50 6,882,410.16 -- 2,819,250.00 16,117,222.66 2023 ------5,691,600.00 4,161,427.50 7,536,064.70 -- -- 17,389,092.20 2024 ------5,751,200.00 10,402,365.00 2,424,025.06 -- -- 18,577,590.06 2025 -- -- $5,892,195.00 $4,369,987.50 -- 1,987,200.00 ------$2,720,000.00 14,969,382.50 2026 -- -- 6,277,195.00 4,650,267.50 ------2,885,000.00 13,812,462.50 2027 -- -- 3,867,195.00 4,851,902.50 ------$2,575,000.00 -- 3,150,000.00 14,444,097.50 2028 -- -- 3,867,195.00 5,068,282.50 ------2,855,000.00 -- 3,335,000.00 15,125,477.50 2029 -- -- 3,867,195.00 5,287,712.50 ------3,140,000.00 -- 3,545,000.00 15,839,907.50 2030 -- -- 3,867,195.00 5,521,712.50 ------3,445,000.00 -- 3,750,000.00 16,583,907.50 2031 -- -- 7,782,195.00 5,769,112.50 ------13,551,307.50 2032 -- -- 8,127,507.50 6,017,812.50 ------14,145,320.00 2033 -- -- 8,485,945.00 6,281,312.50 ------14,767,257.50 2034 -- -- 8,854,382.50 6,561,670.00 ------15,416,052.50 2035 -- -- 9,244,695.00 6,852,640.00 ------16,097,335.00 2036 -- -- 9,652,820.00 7,151,275.00 ------16,804,095.00 2037 -- -- 10,077,285.00 7,469,627.50 ------17,546,912.50 2038 -- -- 10,519,917.50 7,798,767.50 ------18,318,685.00 2039 -- -- 10,985,955.00 8,135,092.50 ------19,121,047.50 2040 ------12,550,000.00 -- -- 12,550,000.00 2041 ------13,105,000.00 -- -- 13,105,000.00 2042 ------13,685,000.00 -- -- 13,685,000.00 2043 ------14,285,000.00 -- -- 14,285,000.00 2044 ------14,910,000.00 -- -- 14,910,000.00 2045 ------15,570,000.00 -- -- 15,570,000.00 2046 ------16,255,000.00 -- -- 16,255,000.00 $6,785,000.00 $2,631,796.88 $111,368,872.50 $91,787,175.00 $24,650,800.00 $30,678,947.50 $50,001,362.00 $112,375,000.00 $16,870,866.67 $19,385,000.00 $466,534,820.55

(1) Does not include debt service on bonds to be refunded from proceeds of the 2016 Refunding Bonds. (2) The 2016 Refunding Bonds are being issued on a delayed delivery basis and consequently, the settlement date for such bonds is May 4, 2016. Source: The Acalanes Union High School District.

TAX MATTERS

In the opinion of Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, 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 calculating the federal alternative minimum tax imposed on individuals and corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income tax. Bond Counsel notes that, with respect to corporations, interest on the Bonds may be included as an adjustment in the calculation of alternative minimum taxable income which may affect the alternative minimum tax liability of corporations.

The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of the same series and maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Bond Owner will increase the Bond Owner’s basis in the applicable Bond. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the owner of the Bond is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is exempt from State of California personal income tax.

Bond Counsel’s opinion as to the exclusion from gross income of interest (and original issue discount) on the Bonds is based upon certain representations of fact and certifications made by the District and others and is subject to the condition that the District complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Bonds to assure that interest (and original issue discount) on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to comply with all such requirements.

The amount by which a Bond Owner’s original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium, which must be amortized under Section 171 of the Code; such amortizable Bond premium reduces the Bond Owner’s basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner. Purchasers of the Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable Bond premium.

The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the

Code (or interpretation thereof) subsequent to the issuance of the Bonds to the extent that it adversely affects the exclusion from gross income of interest on the Bonds or their market value.

SUBSEQUENT TO THE ISSUANCE OF THE BONDS, THERE MIGHT BE FEDERAL, STATE OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY INTERPRETATIONS OF FEDERAL, STATE OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE OR LOCAL TAX TREATMENT OF THE INTEREST ON THE BONDS OR THE MARKET VALUE OF THE BONDS. LEGISLATIVE CHANGES HAVE BEEN PROPOSED IN CONGRESS, WHICH, IF ENACTED, WOULD RESULT IN ADDITIONAL FEDERAL INCOME TAX BEING IMPOSED ON CERTAIN OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE BONDS. THE INTRODUCTION OR ENACTMENT OF ANY SUCH CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE BONDS. NO ASSURANCE CAN BE GIVEN THAT, SUBSEQUENT TO THE ISSUANCE OF THE BONDS, SUCH CHANGES (OR OTHER CHANGES) WILL NOT BE INTRODUCED OR ENACTED OR INTERPRETATIONS WILL NOT OCCUR. BEFORE PURCHASING ANY OF THE BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE BONDS.

Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Resolution and the Tax Certificate relating to the Bonds permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income of interest (and original issue discount) on the Bonds for federal income tax purposes with respect to any Bond if any such action is taken or omitted based upon the advice of counsel other than Stradling Yocca Carlson & Rauth.

Although Bond Counsel has rendered an opinion that interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes provided that the District continues to comply with certain requirements of the Code, the ownership of the Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Bonds.

A copy of the proposed form of opinion of Bond Counsel for the Bonds is attached hereto as “APPENDIX A.”

LEGAL MATTERS

Legality for Investment in California

Under provisions of the State Financial Code, the Bonds are legal investments for commercial banks in the State to the extent that the Bonds, in the informed opinion of the bank, are prudent for the investment of funds of depositors, and, under provisions of the State Government Code, are eligible for security for deposits of public moneys in the State.

Continuing Disclosure

Current Undertaking. In connection with the issuance of the Bonds, the District has covenanted for the benefit of bondholders (including the Beneficial Owners of the Bonds) to provide certain financial information and operating data relating to the District (the “Annual Reports”) by not later than nine months following the end of the District’s fiscal year (which currently ends June 30), commencing with the report for the 2015-16 fiscal year, and to provide notices of the occurrence of certain listed events. The Annual Reports and notices of listed events will be filed by the District in accordance with the requirements of the Rule. The specific nature of the information to be contained in the Annual Reports or of the notices of listed events is included in “APPENDIX C – FORM OF CONTINUING DISCLOSURE CERTIFICATE” attached hereto. These covenants have been made in order to assist the Underwriter in complying with the Rule.

Previous Undertakings. The District has, in the past five years, failed to file certain portions of its required annual reports in a timely manner for fiscal years 2010-11 and 2011-12. In addition, in the past five years, the District has failed to file notices of certain listed events in a timely manner as required by its prior continuing disclosure obligations.

No Litigation

No litigation is pending or threatened concerning the validity of the Bonds, and a certificate to that effect 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 questioning the political existence of the District or contesting the District’s ability to receive ad valorem property taxes or to collect other revenues or contesting the District’s ability to issue and retire the Bonds.

Information Reporting Requirements

On May 17, 2006, the President signed the Tax Increase Prevention and Reconciliation Act of 2005 (“TIPRA”). Under Section 6049 of the Internal Revenue Code of 1986, as amended by TIPRA, interest paid on tax-exempt obligations is subject to information reporting in a manner similar to interest paid on taxable obligations. The effective date of this provision is for interest paid after December 31, 2005, regardless of when the tax-exempt obligations were issued. The purpose of this change was to assist in relevant information gathering for the IRS relating to other applicable tax provisions. TIPRA provides that backup withholding may apply to such interest payments made after March 31, 2007 to any bondholder who fails to file an accurate Form W-9 or who meets certain other criteria. The information reporting and backup withholding requirements of TIPRA do not affect the excludability of such interest from gross income for federal income tax purposes.

Legal Opinion

The legal opinion of Bond Counsel, approving the validity of the Bonds, will be supplied to the original purchasers thereof without cost. A copy of the proposed form of such legal opinion for the Bonds is attached to this Official Statement as “APPENDIX A.”

Escrow Verification

Upon delivery of the Bonds, the Verification Agent will deliver a report on the mathematical accuracy of certain computations based upon certain information and assertions provided to them by the Underwriter relating to (a) the adequacy of the maturing principal of and interest on the Federal Securities in the Escrow Fund, together with any moneys held therein as cash, to pay the principal of and interest on

2014 Notes at maturity, as well as interest due prior to maturity, and (b) the computations of yield of the Bonds and the Federal Securities in the Escrow Fund which support Bond Counsel’s opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes.

MISCELLANEOUS

Rating

The Bonds have been assigned a rating of “Aa1” by Moody’s. The rating reflects only the view of the rating agency, and any explanation of the significance of such rating should be obtained from the rating agency at the following addresses: Moody’s Investors Service, 7 World Trade Center at 250 Greenwich Street, New York, NY 10007. Generally, rating agencies base their ratings on information and materials furnished to them (which may include information and material from the District which is not included in this Official Statement) and on investigations, studies and assumptions by the rating agencies. There is no assurance that the rating will be retained for any given period of time or that the same will not be revised downward or withdrawn entirely by the rating agency if, in the judgment of the rating agency, circumstances so warrant. The District undertakes no responsibility to oppose any such revision or withdrawal. Any such downward revision or withdrawal of the rating obtained may have an adverse effect on the market price of the Bonds.

The District has covenanted in a Continuing Disclosure Certificate to file on the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access website (“EMMA”), notices of any rating changes on the Bonds. See “APPENDIX C—FORM OF CONTINUING DISCLOSURE CERTIFICATE.” Notwithstanding such covenant, information relating to rating changes on the Bonds may be publicly available from the rating agency prior to such information being provided to the District and prior to the date the District is obligated to file a notice of rating change on EMMA. Purchasers of the Bonds are directed to the ratings agency and its website and official media outlets for the most current rating changes with respect to the Bonds after the initial issuance of the Bonds.

Financial Statements

The District’s audited financial statements with supplemental information for the year ended June 30, 2015, the independent auditor’s report of the District, and the related statements of activities and of cash flows for the year then ended, and the report of Christy White Associates, a Professional Accountancy Corporation (the “Auditor”) dated December 15, 2015, are attached to this Official Statement as APPENDIX B. In connection with the inclusion of the financial statements and the report of the Auditor thereon in APPENDIX B to this Official Statement, the District did not request the Auditor to, and the Auditor has not undertaken to, update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to the date of its report.

Underwriting

The Bonds are being purchased by RBC Capital Markets, LLC (the “Underwriter”) pursuant to a contract for purchase and sale thereof by and between the Underwriter and the District (the “Purchase Contract”). The Underwriter has agreed to purchase the Bonds at a price of $13,913,058.49, which is equal to the initial principal amount of the Bonds of $13,676,446.85, plus net original issue premium of $266,016.00, and less the Underwriter’s discount of $29,404.36.

The Purchase Contract for the Bonds provides that the Underwriter will purchase all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in said agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriter may offer and sell Bonds to certain dealers and others at prices lower than the offering prices stated on the inside cover page. The offering prices may be changed from time to time by the Underwriter.

Underwriter Disclosures. RBC Capital Markets, LLC, the Underwriter of the Bonds, has provided the following for inclusion in this Official Statement:

RBC Capital Markets, LLC and its affiliates are full-service financial institutions engaged in various activities, that may include securities trading, commercial and investment banking, municipal advisory, brokerage, and asset management. In the ordinary course of business, RBC Capital Markets, LLC and its affiliates may actively trade debt and, if applicable, equity securities (or related derivative securities) and provide financial instruments (which may include bank loans, credit support or interest rate swaps). RBC Capital Markets, LLC and its affiliates may engage in transactions for their own accounts involving the securities and instruments made the subject of this securities offering or other offering of the District. RBC Capital Markets, LLC and its affiliates may make a market in credit default swaps with respect to municipal securities in the future. RBC Capital Markets, LLC and its affiliates may also communicate independent investment recommendations, market color or trading ideas and publish independent research views in respect of the offering of the Bonds or other offerings of the District; provided, however, that potential investors are advised that the offering of the Bonds is made only by means of the Official Statement. No dealer, broker, salesperson or other person has been authorized by the District to give any information or to make any representation other than as contained in the Official Statement.

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Additional Information

The purpose of this Official Statement is to supply information to prospective buyers of the Bonds. Quotations from and summaries and explanations of the Bonds, the Resolution providing for issuance of the Bonds, and the constitutional provisions, statutes and other documents referenced herein, do not purport to be complete, and reference is made to said documents, constitutional provisions and statutes for full and complete statements of their provisions.

Some of the data contained herein has been taken or constructed from District records. Appropriate District officials, acting in their official capacities, have reviewed this Official Statement and have determined that, as of the date hereof, the information contained herein is, to the best of their knowledge and belief, true and correct in all material respects and does not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made herein, in light of the circumstances under which they were made, not misleading.

Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended only 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 purchasers or Owners, beneficial or otherwise, of any of the Bonds.

This Official Statement and the delivery thereof have been duly approved and authorized by the District.

ACALANES UNION HIGH SCHOOL DISTRICT

By: /s/ John Nickerson Ed.D. Superintendent

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APPENDIX A

FORM OF OPINION OF BOND COUNSEL

Upon the issuance and delivery of the Bonds, Stradling Yocca Carlson & Rauth, Bond Counsel, proposes to render its final approving opinion with respect to the Bonds substantially in the following form:

May 25, 2016

Governing Board Acalanes Union High School District

Members of the Governing Board:

We have examined a certified copy of the record of the proceedings relative to the issuance and sale of $13,676,446.85 Acalanes Union High School District (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C (the “Bonds”). As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation.

Based on our examination as bond counsel of existing law, certified copies of such legal proceedings and such other proofs as we deem necessary to render this opinion, we are of the opinion, as of the date hereof and under existing law, that:

1. Such proceedings and proofs show lawful authority for the issuance and sale of the Bonds pursuant to Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, a greater than fifty-five percent vote of the qualified electors of the Acalanes Union High School District (the “District”) voting at an election held on November 4, 2008, and a resolution adopted by the Governing Board of the District on April 20, 2016 (the “Resolution”).

2. The Bonds constitute valid and binding general obligations of the District, payable as to both principal and interest from the proceeds of a levy of ad valorem property taxes on all property subject to such taxes in the District, which taxes are unlimited as to rate or amount.

3. Under existing statutes, regulations, rulings and judicial decisions, 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 calculating the federal alternative minimum tax imposed on individuals and corporations. It should be noted that, with respect to corporations, such interest may be included as an adjustment in the calculation of alternative minimum taxable income, which may affect the alternative minimum tax liability of corporations.

4. Interest on the Bonds is exempt from State of California personal income tax.

5. The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity is to be sold to the public) and the stated

A-1

redemption price at maturity with respect to such Bonds constitutes original issue discount. For purposes of the previous sentence, the stated redemption price at maturity includes the aggregate sum of all debt service payments on Capital Appreciation Bonds. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bondowner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Bondowner will increase the Bondowner’s basis in the applicable Bond. Original issue discount that accrues to the Bondowner is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and is exempt from State of California personal income tax.

6. The amount by which a Bondowner’s original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium, which must be amortized under Section 171 of the Internal Revenue Code of 1986, as amended (the “Code”); such amortizable Bond premium reduces the Bondowner’s basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bondowner realizing a taxable gain when a Bond is sold by the Bondowner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Bondowner. Purchasers of the Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable Bond premium.

The opinions expressed herein may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Resolution and the Tax Certificate relating to the Bonds permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. No opinion is expressed herein as to the effect on the exclusion from gross income of interest (and original issue discount) for federal income tax purposes with respect to any Bond if any such action is taken or omitted based upon the advice of counsel other than ourselves. Other than expressly stated herein, we express no opinion regarding tax consequences with respect to the Bonds.

The opinions expressed herein as to the exclusion from gross income of interest (and original issue discount) on the Bonds are based upon certain representations of fact and certifications made by the District and others and are subject to the condition that the District complies with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District has covenanted to comply with all such requirements.

It is possible that subsequent to the issuance of the Bonds there might be federal, state, or local statutory changes (or judicial or regulatory interpretations of federal, state, or local law) that affect the federal, state, or local tax treatment of the Bonds or the market value of the Bonds. No assurance can be given that subsequent to the issuance of the Bonds such changes or interpretations will not occur.

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The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted to the extent constitutionally applicable and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against public agencies in the State of California.

Respectfully submitted,

STRADLING YOCCA CARLSON & RAUTH

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APPENDIX B

THE DISTRICT’S 2014-15 AUDITED FINANCIAL STATEMENTS

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[THIS PAGE INTENTIONALLY LEFT BLANK] ACALANES UNION HIGH SCHOOL DISTRICT

AUDIT REPORT JUNE 30, 2015

ACALANES UNION HIGH SCHOOL DISTRICT OF CONTRA COSTA COUNTY

LAFAYETTE, CALIFORNIA

JUNE 30, 2015

The Acalanes Union High School District was established in 1939, and is comprised of an area of approximately 80 square miles located in Contra Costa County. This District serves the communities of Lafayette, Orinda, Moraga, Canyon and a portion of Walnut Creek. There were no changes in the boundaries of the District during the current year. The District is operating four comprehensive high schools, a continuation high school, a center for independent study and an adult school.

GOVERNING BOARD Member Office Term Expires

Susie Epstein Board President 2018

Richard Whitmore Board Clerk 2016

Kathy Coopersmith Member 2016

Bob Hockett Member 2018

Nancy Kendzierski Member 2018

DISTRICT ADMINISTRATORS

John Nickerson, Ed.D Superintendent

Chris Learned Associate Superintendent, Business Services

Kevin French Associate Superintendent, Administrative Services

Julie Bautista Director of Fiscal Services

ACALANES UNION HIGH SCHOOL DISTRICT TABLE OF CONTENTS FOR THE YEAR ENDED JUNE 30, 2015

FINANCIAL SECTION

Independent Auditors’ Report ...... 1 Management’s Discussion and Analysis ...... 4 Basic Financial Statements Government‐wide Financial Statements Statement of Net Position ...... 11 Statement of Activities ...... 12 Fund Financial Statements Governmental Funds – Balance Sheet ...... 13 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ...... 14 Governmental Funds – Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 15 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ...... 16 Fiduciary Funds – Statement of Net Position ...... 18 Fiduciary Funds – Statement of Changes in Net Position ...... 19 Notes to Financial Statements ...... 20

REQUIRED SUPPLEMENTARY INFORMATION

General Fund – Budgetary Comparison Schedule ...... 56 Schedule of Funding Progress ...... 57 Schedule of the District’s Proportionate Share of the Net Pension Liability ‐ CalSTRS ...... 58 Schedule of the District’s Proportionate Share of the Net Pension Liability ‐ CalPERS ...... 59 Schedule of District Contributions ‐ CalSTRS ...... 60 Schedule of District Contributions ‐ CalPERS ...... 61 Notes to Required Supplementary Information...... 62

SUPPLEMENTARY INFORMATION

Schedule of Expenditures of Federal Awards ...... 64 Schedule of Average Daily Attendance (ADA) ...... 65 Schedule of Instructional Time ...... 66 Schedule of Financial Trends and Analysis ...... 67 Schedule of Charter Schools ...... 68 Combining Statements – Non‐Major Governmental Funds Combining Balance Sheet ...... 69 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ...... 70 Notes to Supplementary Information ...... 71 ACALANES UNION HIGH SCHOOL DISTRICT TABLE OF CONTENTS FOR THE YEAR ENDED JUNE 30, 2015

OTHER INDEPENDENT AUDITORS’ REPORTS

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...... 72 Report on Compliance For Each Major Federal Program; and Report on Internal Control Over Compliance Required by OMB Circular A‐133 ...... 74 Report on State Compliance ...... 76

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Summary of Auditors’ Results ...... 79 Financial Statement Findings ...... 80 Federal Award Findings and Questioned Costs ...... 81 State Award Findings and Questioned Costs ...... 82 Summary Schedule of Prior Audit Findings ...... 83

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT

Governing Board Acalanes Union High School District Lafayette, California Christy White, CPA Report on the Financial Statements Michael Ash, CPA We have audited the accompanying financial statements of the governmental activities, each Heather Rubio major fund, and the aggregate remaining fund information of the Acalanes Union High School District, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Acalanes Union High School District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements SAN DIEGO LOS ANGELES Management is responsible for the preparation and fair presentation of these financial SAN FRANCISCO/BAY AREA statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from Corporate O ce: material misstatement, whether due to fraud or error. 348 Olive Street San Diego, CA 92103 Auditor’s Responsibility

toll-free: 877.220.7229 tel: 619.270.8222 Our responsibility is to express opinions on these financial statements based on our audit. fax: 619.260.9085 We conducted our audit in accordance with auditing standards generally accepted in the www.christywhite.com United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorʹs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entityʹs preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entityʹs internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Acalanes Union High School District, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

As described in Note 1 to the financial statements, in 2015 Acalanes Union High School District adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the required supplementary information, such as management’s discussion and analysis, budgetary comparison information, schedule of funding progress for OPEB benefits, schedules of proportionate share of net pension liability, and schedules of District contributions for pensions be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Acalanes Union High School District’s basic financial statements. The supplementary information listed in the table of contents, including the schedule of expenditures of Federal awards, which is required by the U.S. Office of Management and Budget Circular A‐133, Audits of State, Local Governments, and Non‐Profit Organizations, is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The supplementary information listed in the table of contents is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2015 on our consideration of Acalanes Union High School Districtʹs internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Acalanes Union High School District’s internal control over financial reporting and compliance.

San Diego, California December 15, 2015

ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION

Our discussion and analysis of Acalanes Union High School District’s (District) financial performance provides an overview of the District’s financial activities for the fiscal year ended June 30, 2015. It should be read in conjunction with the District’s financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

 The District’s total net position was ($65,333,402) at June 30, 2015. This was a decrease of $49,646,183 from the prior year before restatement.

 Overall revenues were $78,965,073 which exceeded expenses of $75,333,970.

OVERVIEW OF FINANCIAL STATEMENTS

Components of the Financials Section

Management's Required Basic Financial Discussion & Supplementary Statements Analysis Information

Government-Wide Fund Financial Notes to the Financial Statements Statements Financial Statements

Summary Detail

4 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

This annual report consists of three parts – Management’s Discussion and Analysis (this section), the basic financial statements, and required supplementary information. The three sections together provide a comprehensive overview of the District. The basic financial statements are comprised of two kinds of statements that present financial information from different perspectives:

 Government‐wide financial statements, which comprise the first two statements, provide both short‐term and long‐term information about the entity’s overall financial position.

 Fund financial statements focus on reporting the individual parts of District operations in more detail. The fund financial statements comprise the remaining statements.

 Governmental Funds provide a detailed short‐term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs.

 Fiduciary Funds report balances for which the District is a custodian or trustee of the funds, such as Associated Student Bodies and pension funds.

The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The basic financial statements are followed by a section of required and other supplementary information that further explain and support the financial statements.

Government‐Wide Statements

The government‐wide statements report information about the District as a whole using accounting methods similar to those used by private‐sector companies. The statement of net position includes all of the government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities, regardless of when cash is received or paid.

The two government‐wide statements report the District’s net position and how it has changed. Net position is one way to measure the District’s financial health. Over time, increases or decreases in the District’s net position are an indicator of whether its financial health is improving or deteriorating, respectively.

The government‐wide financial statements of the District include governmental activities. All of the District’s basic services are included here, such as regular education, food service, maintenance and general administration. Local Control Formula Funding and federal and state grants finance most of these activities.

5 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

FINANCIAL ANALYSIS OF THE ENTITY AS A WHOLE

Net Position

The District’s combined net position was ($65,333,402) at June 30, 2015, as reflected in the table below. Of this amount, ($87,462,204) was unrestricted. Restricted net position is reported separately to show legal constraints from debt covenants and enabling legislation that limit the Governing Board’s ability to use that net position for day‐to‐day operations.

Governmental Activities 2015 2014 Net Change ASSETS Current and other assets$ 52,645,293 $ 40,160,696 $ 12,484,597 Capital assets 160,315,696 159,850,489 465,207 Total Assets 212,960,989 200,011,185 12,949,804

DEFERRED OUTFLOWS OF RESOURCES 11,176,444 7,383,954 3,792,490

LIABILITIES Current liabilities 11,179,552 10,497,593 681,959 Long‐term liabilities 262,275,925 207,135,578 55,140,347 Total Liabilities 273,455,477 217,633,171 55,822,306

DEFERRED INFLOWS OF RESOURCES 16,015,358 5,449,187 10,566,171

NET POSITION Restricted 22,128,802 2,854,845 19,273,957 Unrestricted (87,462,204) (18,542,064) (68,920,140) Total Net Position $ (65,333,402) $ (15,687,219) $ (49,646,183)

6 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

FINANCIAL ANALYSIS OF THE ENTITY AS A WHOLE (continued)

Changes in Net Position

The results of this year’s operations for the District as a whole are reported in the Statement of Activities. The table below takes the information from the Statement, rounds off the numbers, and rearranges them slightly, so you can see our total revenues, expenses, and special items for the year.

Governmental Activities 2015 2014 Net Change REVENUES Program revenues Charges for services$ 902,606 $ 906,897 $ (4,291) Operating grants and contributions 6,881,396 8,041,821 (1,160,425) General revenues Property taxes 59,176,825 54,633,935 4,542,890 Unrestricted federal and state aid 6,960,733 5,501,607 1,459,126 Other 5,043,513 4,017,986 1,025,527 Total Revenues 78,965,073 73,102,246 5,862,827 EXPENSES Instruction 38,264,738 39,188,126 (923,388) Instruction‐related services 8,029,799 7,327,905 701,894 Pupil services 7,932,218 8,957,918 (1,025,700) General administration 4,491,141 4,893,692 (402,551) Plant services 7,829,781 8,059,943 (230,162) Ancillary and community services 1,354,093 1,075,123 278,970 Deb t service 1,738,610 4,187,360 (2,448,750) Other Outgo 109,500 4,494,289 (4,384,789) Depreciation 5,575,312 ‐ 5,575,312 Other 8,778 8,892 (114) Total Expenses 75,333,970 78,193,248 (2,859,278) Change in net position 3,631,103 (5,091,002) 8,722,105 Net Position ‐ Beginning, as Restated (68,964,505) (10,596,217) (58,368,288) Net Position ‐ Ending $ (65,333,402) $ (15,687,219) $ (49,646,183)

* Restatement to Beginning Net Position relates to the 2015 year.

The cost of all our governmental activities this year was $75,333,970 (refer to the table above). The amount that our taxpayers ultimately financed for these activities through taxes was only $59,176,825 because the cost was paid by other governments and organizations who subsidized certain programs with grants and contributions.

7 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

FINANCIAL ANALYSIS OF THE ENTITY AS A WHOLE (continued)

Changes in Net Position (continued)

In the table below we have presented the net cost of each of the District’s functions. Net cost shows the financial burden that was placed on the District’s taxpayers by each of these functions. Providing this information allows our citizens to consider the cost of each function in comparison to the benefits they believe are provided by that function.

Net Cost of Services 2015 2014 Instruction$ 33,110,090 $ 33,772,230 Instruction‐related services 7,359,106 5,582,604 Pupil services 7,026,771 7,970,463 General administration 4,412,169 4,714,352 Plant services 7,787,461 8,003,557 Ancillary and community services 422,171 510,783 Deb t service 1,738,610 4,187,360 Transfers to other agencies 109,500 4,494,289 Depreciation 5,575,312 ‐ Other 8,778 8,892 Total Expenses $ 67,549,968 $ 69,244,530

FINANCIAL ANALYSIS OF THE DISTRICT’S MAJOR FUNDS

The financial performance of the District as a whole is reflected in its governmental funds as well. As the District completed this year, its governmental funds reported a combined fund balance of $49,451,990, which is more than last year’s ending fund balance of $37,561,788. The District’s General Fund had $1,147,290 less in operating revenues than expenditures for the year ended June 30, 2015. The District’s Building Fund had $5,329,354 less in operating revenues than expenditures for the year ended June 30, 2015. The District’s Special Reserve Fund for Capital Outlay Projects had $180,057 more in operating revenues than expenditures for the year ended June 30, 2015. The District’s Bond Interest and Redemption Fund had $953,053 more in operating revenues than expenditures for the year ended June 30, 2015.

CURRENT YEAR BUDGET 2014‐15

During the fiscal year, budget revisions and appropriation transfers are presented to the Board for their approval on a periodic basis to reflect changes to both revenues and expenditures that become known during the year. The Board of Education approves financial projections included with the Adopted Budget, First Interim, and Second Interim financial reports. The Unaudited Actuals reflect the District’s financial projections and current budget based on State and local financial information.

8 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

By the end of 20142014‐15 the District had invested $160,315,696 in capital assets, net of accumulated depreciation.

Governmental Activities 2015 2014 Net Change CAPITAL ASSETS Land$ 1,905,037 $ 1,905,037 $ ‐ Construction in progress 3,971,115 843,632 3,127,483 Land improvements 36,418,753 36,233,952 184,801 Buildings & improvements 190,359,979 187,756,367 2,603,612 Furniture & equipment 4,835,229 4,710,043 125,186 Accumulated depreciation (77,174,417) (71,599,105) (5,575,312) Total Capital Assets $160,315,696 $159,849,926 $ 465,770

Long‐Term Debt

At year‐end, the District had $262,275,925 in long‐term debt, an increase of $51,803,537 from last year – as shown in the table below. (More detailed information about the District’s long‐term liabilities is presented in footnotes to the financial statements.)

Governmental Activities 2015 2014 Net Change LONG‐TERM LIABILITIES Total general obligation bonds$ 220,021,742 $211,326,298 $ 8,695,444 Compensated absences 398,879 459,192 (60,313) Net OPEB obligation 2,575,226 2,716,050 (140,824) Net pension liability 45,084,275 ‐ 45,084,275 Less: current portion of long‐term debt (5,804,197) (4,029,152) (1,775,045) Total Long‐term Liabilities $262,275,925 $210,472,388 $ 51,803,537

9 ACALANES UNION HIGH SCHOOL DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS, continued FOR THE YEAR ENDED JUNE 30, 2015

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

At the time these financial statements were prepared and audited, the District was aware of several circumstances that could affect its future financial health.

Landmark legislation passed in Year 2013 reformed California school district finance by creating the Local Control Funding Formula (LCFF). The District continues to analyze the impact of the LCFF on funding for our program offerings and services. The LCFF is designed to provide a flexible funding mechanism that links student achievement to state funding levels. The LCFF provides a per pupil base grant amount, by grade span, that is augmented by supplemental funding for targeted student groups in low income brackets, those that are English language learners and foster youth. The State anticipates all school districts to reach the statewide targeted base funding levels by 2020‐21 but the annual amount funded to meet the target is uncertain.

Factors related to LCFF that the District is monitoring include: (1) estimates of funding in the next budget year and beyond; (2) the Local Control and Accountability Plan (LCAP) that aims to link student accountability measurements to funding allocations; (3) ensuring the integrity of reporting student data through the California Longitudinal Pupil Achievement Data System (CALPADs); and, (4) meeting annual compliance and audit requirements.

The State’s economy is expected to grow at a modest rate of about 2%‐3% annually over the next two years with little chance of recession, according to the UCLA Anderson Economic Forecast for September 2015. The ability of the State to fund the LCFF and other programs is largely dependent on the strength of the State’s economy and remains uncertain.

GASB 68, Accounting and Financial Reporting for Pensions, is effective in the 2014‐15 fiscal year. The new standard requires the reporting of annual pension cost using an actuarially determined method and a net pension liability is expected to result. The District participates in state employee pension plans, PERS and STRS, and both are underfunded. The District’s proportionate share of the liability is reported in the Statement of Net Position as of June 30, 2015. The amount of the liability is material to the financial position of the District. To address the underfunding issues, the pension plans intend to raise employer rates in future years, and the increased costs could be significant.

Enrollment can fluctuate due to factors such as population growth, competition from private, parochial, inter‐ district transfers in or out, economic conditions and housing values. Losses in enrollment will cause a school district to lose operating revenues without necessarily permitting the district to make adjustments in fixed operating costs.

All of these factors were considered in preparing the District’s budget for the 2015‐16 fiscal year.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, students, and investors and creditors with a general overview of the District’s finances and to show the District’s accountability for the money it receives. If you have questions about this report or need any additional financial information, contact the District Office, Acalanes Union High School District, 1212 Pleasant Hill Road, Lafayette, CA 94549.

10 ACALANES UNION HIGH SCHOOL DISTRICT STATEMENT OF NET POSITION JUNE 30, 2015

Governmental Activities ASSETS Cash and cash equivalents$ 48,984,894 Investments 946,938 Accounts receivable 2,707,327 Prepaid expenses 6,134 Capital assets, not depreciated 5,876,152 Capital assets, net of accumulated depreciation 154,439,544 Total Assets 212,960,989

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 3,490,385 Deferred amount on refunding 7,686,059 Total Deferred Outflows of Resources 11,176,444

LIABILITIES Accrued liabilities 5,206,093 Unearned revenue 169,262 Long‐term liabilities, current portion 5,804,197 Long‐term liabilities, non‐current portion 262,275,925 Total Liabilities 273,455,477

DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 12,078,152 Deferred amount on refunding 3,937,206 Total Deferred Inflows of Resources 16,015,358

NET POSITION Restricted: Capital projects 13,763,756 Deb t service 7,288,176 Educat ional programs 1,072,455 All others 4,415 Unrestricted (87,462,204) Total Net Position $ (65,333,402)

The accompanying notes are an integral part of these financial statements. 11 ACALANES UNION HIGH SCHOOL DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015

Net (Expenses) Revenues and Changes in Program Revenues Net Position Operating Charges for Grants and Governmental Function/Programs Expenses Services Contributions Activities GOVERNMENTAL ACTIVITIES Instruction$ 38,264,738 $ 601,998 $ 4,552,650 $ (33,110,090) Instruction‐related services Instructional supervision and administration 4,326,615 17,141 411,988 (3,897,486) Instructional library, media, and technology 1,578,057 15,180 62,069 (1,500,808) School site administration 2,125,127 32,289 132,026 (1,960,812) Pupil services Home‐to‐school transportation 998,994 ‐ 129,077 (869,917) Food services 1,174,167 ‐ 149,758 (1,024,409) All other pupil services 5,759,057 39,246 587,366 (5,132,445) General administration Centralized data processing 662,953 ‐ ‐ (662,953) All other general administration 3,828,188 13,623 65,349 (3,749,216) Plant services 7,829,781 ‐ 42,320 (7,787,461) Ancillary services 1,227,296 183,129 748,793 (295,374) Community services 126,797 ‐ ‐ (126,797) Enter pr ise activities 8,778 ‐ ‐ (8,778) Interest on long‐term debt 1,738,610 ‐ ‐ (1,738,610) Other Outgo 109,500 ‐ ‐ (109,500) Depr eciat ion (unallocated) 5,575,312 ‐ ‐ (5,575,312) Total Governmental Activities $ 75,333,970 $ 902,606 $ 6,881,396 (67,549,968) General revenues Taxes and subventions Property taxes, levied for general purposes 37,695,334 Property taxes, levied for debt service 10,686,811 Property taxes, levied for other specific purposes 10,794,680 Federal and state aid not restricted for specific purposes 6,960,733 Interest and investment earnings 365,965 Interagency revenues 26,700 Miscellaneous 4,650,848 Subtotal, General Revenue 71,181,071 CHANGE IN NET POSITION 3,631,103 Net Position ‐ Beginning, as Restated (68,964,505) Net Position ‐ Ending $ (65,333,402)

The accompanying notes are an integral part of these financial statements. 12 ACALANES UNION HIGH SCHOOL DISTRICT GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2015

Special Reserve Non‐Major Total Fund for Capital Bond Interest & Governmental Governmental General Fund Building Fund Outlay Projects Redemption Fund Funds Funds ASSETS Cash and cash equivalents$ 7,572,702 $ 16,767,377 $ 11,497,458 $ 9,470,228 $ 3,677,129 $ 48,984,894 Investments 946,938 ‐ ‐ ‐ ‐ 946,938 Accounts receivable 2,153,195 464,899 ‐ ‐ 89,233 2,707,327 Prepaid expenditures 6,134 ‐ ‐ ‐ ‐ 6,134 Total Assets $ 10,678,969 $ 17,232,276 $ 11,497,458 $ 9,470,228 $ 3,766,362 $ 52,645,293

LIABILITIES Accrued liabilities$ 1,264,240 $ 1,570,538 $ ‐ $ ‐ $ 189,263 $ 3,024,041 Unearned revenue 104,993 ‐ ‐ ‐ 64,269 169,262 Total Liabilities 1,369,233 1,570,538 ‐ ‐ 253,532 3,193,303

FUND BALANCES Nonspendable 23,134 ‐ ‐ ‐ 6,500 29,634 Restricted 1,071,747 15,661,738 11,497,458 9,470,228 2,271,421 39,972,592 Committed ‐ ‐ ‐ ‐ 1,234,909 1,234,909 Assigned 4,440,742 ‐ ‐ ‐ ‐ 4,440,742 Unassigned 3,774,113 ‐ ‐ ‐ ‐ 3,774,113 Total Fund Balances 9,309,736 15,661,738 11,497,458 9,470,228 3,512,830 49,451,990 Total Liabilities and Fund Balances $ 10,678,969 $ 17,232,276 $ 11,497,458 $ 9,470,228 $ 3,766,362 $ 52,645,293

The accompanying notes are an integral part of these financial statements. 13 ACALANES UNION HIGH SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2015

Total Fund Balance ‐ Governmental Funds $ 49,451,990

Amounts reported for assets and liabilities for governmental activities in the statement of net position are different from amounts reported in governmental funds because:

Capital assets: In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation: Capital assets$ 237,490,113 Accumulated depreciation (77,174,417) 160,315,696

Deferred amount on refunding: In governmental funds, the net effect of refunding bonds is recognized when debt is issued, whereas this amount is deferred and amortized in the government‐wide financial statements: 3,748,853

Unmatured interest on long‐term debt: In governmental funds, interest on long‐term debt is not recognized until the period in which it matures and is paid. In the government‐wide statement of activities, it is recognized in the period that it is incurred. The additional liability for unmatured interest owing at the end of the period was: (2,182,052)

Long‐term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long‐term liabilities, are reported. Long‐term liabilities relating to governmental activities consist of: Total general obligation bonds$ 220,021,742 Compensated absences 398,879 Net OPEB obligation 2,575,226 Net pension liability 45,084,275 (268,080,122)

Deferred outflows and inflows of resources relating to pensions: In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported. Deferred outflows of resources related to pensions$ 3,490,385 Deferred inflows of resources related to pensions (12,078,152) (8,587,767)

Total Net Position ‐ Governmental Activities $ (65,333,402)

The accompanying notes are an integral part of these financial statements. 14 ACALANES UNION HIGH SCHOOL DISTRICT GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2015

Special Reserve Non‐Major Total Fund for Capital Bond Interest & Governmental Governmental General Fund Building Fund Outlay Projects Redemption Fund Funds Funds REVENUES LCFF sources$ 41,100,216 $ ‐ $ ‐ $ ‐ $ 970,000 $ 42,070,216 Federal sources 1,125,862 ‐ ‐ ‐ 191,598 1,317,460 Other state sources 3,713,307 ‐ ‐ 69,404 8,494 3,791,205 Other local sources 17,276,475 932,761 180,571 10,635,592 2,331,750 31,357,149 Total Revenues 63,215,860 932,761 180,571 10,704,996 3,501,842 78,536,030

EXPENDITURES Current Instruction 37,211,755 ‐ ‐ ‐ 407,242 37,618,997 Instruction‐related services Instructional supervision and administration 4,252,754 ‐ ‐ ‐ ‐ 4,252,754 Instructional library, media, and technology 1,583,679 ‐ ‐ ‐ ‐ 1,583,679 School site administration 1,568,485 ‐ ‐ ‐ 541,743 2,110,228 Pupil services Home‐to‐school transportation 1,001,928 ‐ ‐ ‐ ‐ 1,001,928 Food services ‐ ‐ ‐ ‐ 1,182,427 1,182,427 All other pupil services 5,710,029 ‐ ‐ ‐ ‐ 5,710,029 General administration Centralized data processing 671,418 ‐ ‐ ‐ ‐ 671,418 All other general administration 3,575,455 ‐ ‐ ‐ 330,286 3,905,741 Plant services 6,831,793 1,056,589 ‐ ‐ 8,272 7,896,654 Facilities acquisition and maintenance 584,834 4,960,609 514 ‐ 478,136 6,024,093 Ancillary services 1,235,116 ‐ ‐ ‐ ‐ 1,235,116 Community services 127,126 ‐ ‐ ‐ ‐ 127,126 Enterprise activities 8,778 ‐ ‐ ‐ ‐ 8,778 Deb t service Principal ‐ ‐ ‐ 5,487,859 ‐ 5,487,859 Interest and other ‐ 244,917 ‐ 4,264,084 ‐ 4,509,001 Total Expenditures 64,363,150 6,262,115 514 9,751,943 2,948,106 83,325,828 Excess (Deficiency) of Revenues Over Expenditures (1,147,290) (5,329,354) 180,057 953,053 553,736 (4,789,798) Other Financing Sources (Uses) Transfers in ‐ 84,596 579,304 ‐ 265,000 928,900 Other sources ‐ 47,932,402 ‐ ‐ ‐ 47,932,402 Transfers out (129,596) (799,304) ‐ ‐ ‐ (928,900) Other uses ‐ (31,252,402) ‐ ‐ ‐ (31,252,402) Net Financing Sources (Uses) (129,596) 15,965,292 579,304 ‐ 265,000 16,680,000

NET CHANGE IN FUND BALANCE (1,276,886) 10,635,938 759,361 953,053 818,736 11,890,202 Fund Balance ‐ Beginning 10,586,622 5,025,800 10,738,097 8,517,175 2,694,094 37,561,788 Fund Balance ‐ Ending $ 9,309,736 $ 15,661,738 $ 11,497,458 $ 9,470,228 $ 3,512,830 $ 49,451,990

The accompanying notes are an integral part of these financial statements. 15 ACALANES UNION HIGH SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015

Net Change in Fund Balances ‐ Governmental Funds $ 11,890,202

Amounts reported for governmental activities in the statement of activities are different from amounts reported in governmental funds because:

Capital outlay: In governmental funds, the costs of capital assets are reported as expenditures in the period when the assets are acquired. In the statement of activities, costs of capital assets are allocated over their estimated useful lives as depreciation expense. The difference between capital outlay expenditures and depreciation expense for the period is: Expenditur es for capital outlay:$ 6,041,082 Depr eciat ion expense: (5,575,312) 465,770

Deb t service: In governmental funds, repayments of long‐term debt are reported as expenditures. In the government‐wide statements, repayments of long‐term debt are reported as reductions of liabilities. Expenditur es for repayment of the principal portion of long‐term debt were: 23,031,163

Deb t proceeds: In governmental funds, proceeds from debt are recognized as Other Financing Sources. In the government‐wide statements, proceeds from debt are reported as increases to liabilities. Amounts recognized in governmental funds as proceeds from debt, net of issue premium or discount, were: (47,932,402)

Deferred amounts on refunding: In governmental funds, deferred amounts on refundings are recognized in the period they are incurred. In the government‐wide statements, the deferred amounts on refundings are amortized over the life of the debt. The net effect of the deferred amounts on refundings during the period was: (1,522,724)

The accompanying notes are an integral part of these financial statements. 16 ACALANES UNION HIGH SCHOOL DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES, continued FOR THE YEAR ENDED JUNE 30, 2015

Unmatured interest on long‐term debt: In governmental funds, interest on long‐term debt is recognized in the period that it becomes due. In the government‐wide statement of activities, it is recognized in the period it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period, was: 1,686,918

Accreted interest on long‐term debt: In governmental funds, accreted interest on capital appreciation bonds is not recorded as an expenditure from current sources. In the government‐wide statement of activities, however, this is recorded as interest expense for the period. 15,768,833

Compensated absences: In governmental funds, compensated absences are measured by the amounts paid during the period. In the statement of activities, compensated absences are measured by the amount earned. The difference between compensated absences paid and compensated absences earned, was: 60,313

Postemployment benefits other than pensions (OPEB): In governmental funds, OPEB costs are recognized when employer contributions are made. In the statement of activities, OPEB costs are recognized on the accrual basis. This year, the difference between OPEB costs and actual employer contributions was: 140,824

Pensions: In governmental funds, pension costs are recognized when employer contributions are made, in the government‐wide statement of activities, pension costs are recognized on the accrual basis. This year, the difference between accrual‐basis pension costs and employer contributions was: (394,756)

Amortization of debt issuance premium or discount: In governmental funds, if debt is issued at a premium or at a discount, the premium or discount is recognized as an Other Financing Source or an Other Financing Use in the period it is incurred. In the government‐wide statements, the premium or discount is amortized over the life of the debt. Amortization of premium or discount for the period is: 436,962

Change in Net Position of Governmental Activities $ 3,631,103

The accompanying notes are an integral part of these financial statements. 17 ACALANES UNION HIGH SCHOOL DISTRICT FIDUCIARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2015

Trust Funds Agency Funds Retiree Benefit Private‐Purpose Student Body Fund Trust Fund Fund ASSETS Cash and cash equivalents$ 1,187,402 $ 1,138,560 $ 821,787 Total Assets 1,187,402 1,138,560 $ 821,787

LIABILITIES Due to student groups ‐ ‐ $ 821,787 Total Liabilities ‐ ‐ $ 821,787

NET POSITION Restricted ‐ 1,138,560 Unrestricted 1,187,402 ‐ $ 1,187,402 $ 1,138,560 Total Net Position

The accompanying notes are an integral part of these financial statements. 18 ACALANES UNION HIGH SCHOOL DISTRICT FIDUCIARY FUNDS STATEMENT OF CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2014

Trust Funds Retiree Benefit Private‐Purpose Fund Trust Fund ADDITIONS Contributions$ 339,944 $ ‐ Investment earnings 806 3,016 Other ‐ 29,694 Total Additions 340,750 32,710

DEDUCTIONS Professional/ Consulting Services 841 39,039 Total Deductions 841 39,039

CHANGE IN NET POSITION 339,909 (6,329) Net Position ‐ Beginning 847,493 1,144,889 Net Position ‐ Ending $ 1,187,402 $ 1,138,560

The accompanying notes are an integral part of these financial statements. 19 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Financial Reporting Entity

The Acalanes Union High School District (the “District”) accounts for its financial transactions in accordance with the policies and procedures of the Department of Educationʹs California School Accounting Manual. The accounting policies of the District conform to generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA).

The District operates under a locally elected Board form of government and provides educational services to grades 9‐12 as mandated by the state. A reporting entity is comprised of the primary government, component units, and other organizations that are included to ensure the financial statements are not misleading. The primary government of the District consists of all funds, departments and agencies that are not legally separate from the District. For the District, this includes general operations, food service, and student‐related activities.

B. Component Units

Component units are legally separate organizations for which the District is financially accountable. Component units may also include organizations that are fiscally dependent on the District in that the District 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 financially accountable but the nature and significance of the organization’s relationship with the District is such that exclusion would cause the District’s financial statements to be misleading or incomplete. The District has no such component units.

C. Basis of Presentation

Government‐Wide Statements. The statement of net position and the statement of activities display information about the primary government (the District). These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double‐ counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenue, and other non‐exchange transactions.

The statement of activities presents a comparison between direct expenses and program revenue for each function of the District’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reserved for the statement of activities. Program revenues include charges paid by the recipients of the goods or services offered by the programs and grants and contributions that are restricted to meeting of operational or capital requirements of a particular program. Revenues that are not classified as program revenues are presented as general revenues. The comparison of program revenues and expenses identifies the extent to which each program or business segment is self‐ financing or draws from the general revenues of the District.

20 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Basis of Presentation

Fund Financial Statements. The fund financial statements provide information about the District’s funds, including its fiduciary funds. Separate statements for each fund category – governmental and fiduciary – are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non‐major funds.

Governmental funds are used to account for activities that are governmental in nature. Governmental activities are typically tax‐supported and include education of pupils, operation of food service and child development programs, construction and maintenance of school facilities, and repayment of long‐term debt.

Fiduciary funds are used to account for assets held by the District in a trustee or agency capacity for others that cannot be used to support the Districtʹs own programs.

Major Governmental Funds

General Fund: The General Fund is the main operating fund of the District. It is used to account for all activities except those that are required to be accounted for in another fund. In keeping with the minimum number of funds principle, all of the Districtʹs activities are reported in the General Fund unless there is a compelling reason to account for an activity in another fund. A District may have only one General Fund.

Building Fund: This fund exists primarily to account separately for proceeds from the sale of bonds (Education Code Section 15146) and may not be used for any purposes other than those for which the bonds were issued. Other authorized revenues to the Building Fund are proceeds from the sale or lease‐with‐option‐to‐purchase of real property (Education Code Section 17462) and revenue from rentals and leases of real property specifically authorized for deposit into the fund by the governing board (Education Code Section 41003).

Special Reserve Fund for Capital Outlay Projects: This fund exists primarily to provide for the accumulation of General Fund moneys for capital outlay purposes (Education Code Section 42840).

Bond Interest and Redemption Fund: This fund is used for the repayment of bonds issued for the District (Education Code Sections 15125–15262). The board of supervisors of the county issues the bonds. The proceeds from the sale of the bonds are deposited in the county treasury to the Building Fund of the District. Any premiums or accrued interest received from the sale of the bonds must be deposited in the Bond Interest and Redemption Fund of the District. The county auditor maintains control over the Districtʹs Bond Interest and Redemption Fund. The principal and interest on the bonds must be paid by the county treasurer from taxes levied by the county auditor‐controller.

21 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Basis of Presentation (continued)

Non‐Major Governmental Funds

Special Revenue Funds: Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. The District maintains the following special revenue funds:

Adult Education Fund: This fund is used to account separately for federal, state, and local revenues for adult education programs. Money in this fund shall be expended for adult education purposes only. Moneys received for programs other than adult education shall not be expended for adult education (Education Code Sections 52616[b] and 52501.5[a]).

Cafeteria Special Revenue Fund: This fund is used to account separately for federal, state, and local resources to operate the food service program (Education Code Sections 38090–38093). The Cafeteria Special Revenue Fund shall be used only for those expenditures authorized by the governing board as necessary for the operation of the Districtʹs food service program (Education Code Sections 38091 and 38100).

Deferred Maintenance Fund: This fund is used to account separately for state apportionments and the Districtʹs contributions for deferred maintenance purposes (Education Code Sections 17582–17587). In addition, whenever the state funds provided pursuant to Education Code Sections 17584 and 17585 (apportionments from the State Allocation Board) are insufficient to fully match the local funds deposited in this fund, the governing board of a school district may transfer the excess local funds deposited in this fund to any other expenditure classifications in other funds of the District (Education Code Sections 17582 and 17583).

Capital Project Funds: Capital project funds are established to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds).

Capital Facilities Fund: This fund is used primarily to account separately for moneys received from fees levied on developers or other agencies as a condition of approving a development (Education Code Sections 17620–17626). The authority for these levies may be county/city ordinances (Government Code Sections 65970–65981) or private agreements between the District and the developer. Interest earned in the Capital Facilities Fund is restricted to that fund (Government Code Section 66006).

22 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Basis of Presentation (continued)

Fiduciary Funds

Trust and Agency Funds: Trust and agency funds are used to account for assets held in a trustee or agent capacity for others that cannot be used to support the Districtʹs own programs. The key distinction between trust and agency funds is that trust funds are subject to a trust agreement that affects the degree of management involvement and the length of time that the resources are held.

Retiree Benefit Fund: This fund exists to account separately for amounts held in trust from salary reduction agreements, other irrevocable contributions for employees’ retirement benefit payments, or both.

Foundation Private‐Purpose Trust Fund: This fund is used to account separately for gifts or bequests per Education Code Section 41031 that benefit individuals, private organizations, or other governments and under which neither principal nor income may be used for purposes that support the Districtʹs own programs.

Student Body Fund: The Student Body Fund is an agency fund and, therefore, consists only of accounts such as cash and balancing liability accounts, such as due to student groups. The student body itself maintains its own general fund, which accounts for the transactions of that entity in raising and expending money to promote the general welfare, morale, and educational experiences of the student body (Education Code Sections 48930–48938).

D. Basis of Accounting – Measurement Focus

Government‐Wide and Fiduciary Financial Statements The government‐wide and fiduciary fund financial statements are reported using the economic resources measurement focus. The government‐wide and fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Net Position equals assets and deferred outflows of resources minus liabilities and deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. The net position should be reported as restricted when constraints placed on its use are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The net position restricted for other activities results from special revenue funds and the restrictions on their use.

23 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Basis of Accounting – Measurement Focus (continued)

Governmental Funds Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Governmental funds use the modified accrual basis of accounting.

Revenues – Exchange and Non‐Exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded under the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. “Available” means the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. Generally, “available” means collectible within the current period or within 60 days after year‐end. However, to achieve comparability of reporting among California school districts and so as not to distort normal revenue patterns, with specific respect to reimbursement grants and corrections to State‐aid apportionments, the California Department of Education has defined available for school districts as collectible within one year.

Non‐exchange transactions, in which the District receives value without directly giving equal value in return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from the grants and entitlements is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Eligibility requirements include timing requirements, which specify the year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which the District must provide local resources to be used for a specific purpose; and expenditure requirements, in which the resources are provided to the District on a reimbursement basis. Under the modified accrual basis, revenue from non‐exchange transactions must also be available before it can be recognized.

Unearned Revenue Unearned revenue arises when potential revenue does not meet both the ʺmeasurableʺ and ʺavailableʺ criteria for recognition in the current period or when resources are received by the District prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the District has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized.

Certain grants received that have not met eligibility requirements are recorded as unearned revenue. On the governmental fund financial statements, receivables that will not be collected within the available period are also recorded as unearned revenue.

24 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Basis of Accounting – Measurement Focus (continued)

Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time a liability is incurred. On the modified accrual basis of accounting, expenditures are generally recognized in the accounting period in which the related fund liability is incurred, as under the accrual basis of accounting. However, under the modified accrual basis of accounting, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Allocations of cost, such as depreciation and amortization, are not recognized in the governmental funds. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

E. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, Fund Balance and Net Position

Cash and Cash Equivalents The District’s cash and cash equivalents consist of cash on hand, demand deposits and short‐term investments with original maturities of three months or less from the date of acquisition. Cash held in the county treasury is recorded at cost, which approximates fair value.

Investments Investments with original maturities greater than one year are stated at fair value. Fair value is estimated based on quoted market prices at year‐end. All investments not required to be reported at fair value are stated at cost or amortized cost. Fair values of investments in county and State investment pools are determined by the program sponsor.

Inventories Inventories are recorded using the purchases method in that the cost is recorded as an expenditure at the time the individual inventory items are requisitioned. Inventories are valued at historical cost and consist of expendable supplies held for consumption.

25 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, Fund Balance and Net Position (continued)

Capital Assets The accounting and reporting treatment applied to the capital assets associated with a fund is determined by its measurement focus. Capital assets are reported in the governmental activities column of the government‐ wide statement of net position, but are not reported in the fund financial statements.

Capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated fixed assets are recorded at their fair market values as of the date received. The District maintains a capitalization threshold of $5,000. The District does not own any infrastructure as defined in GASB Statement No. 34. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are not capitalized. All reported capital assets, except for land and construction in progress, are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation is computed using the straight‐line method over the following estimated useful lives:

Asset Class Estimated Useful Life Sites and Improvements 20 years Buildings and Improvements 50 years Furniture and Equipment 5‐20 years

Interfund Balances On fund financial statements, receivables and payables resulting from short‐term interfund loans are classified as ʺDue from other funds/Due to other funds.” These amounts are eliminated in the governmental activities columns of the statement of net position.

Compensated Absences Accumulated unpaid employee vacation benefits are accrued as a liability as the benefits are earned. The entire compensated absence liability is reported on the government‐wide financial statements. For governmental funds, the current portion of unpaid compensated absences is recognized upon the occurrence of relevant events such as employee resignations and retirements that occur prior to year‐end that have not yet been paid with expendable available financial resource. These amounts are recorded in the fund from which the employees who have accumulated leave are paid.

Accumulated sick leave benefits are not recognized as liabilities of the District. The Districtʹs policy is to record sick leave as an operating expense in the period taken because such benefits do not vest, nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits when the employee retires.

26 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, Fund Balance and Net Position (continued)

Accrued Liabilities and Long‐Term Obligations All payables, accrued liabilities, and long‐term obligations are reported in the government‐wide statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds.

Premiums and Discounts In the government‐wide financial statements, long‐term obligations are reported as liabilities in the fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight line method.

Deferred Outflows/Deferred Inflows of Resources In addition to assets, the District will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the District will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time.

Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the defined benefit pension plans (the Plans) of the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Fund Balance Fund balance is divided into five classifications based primarily on the extent to which the District is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:

Nonspendable ‐ The nonspendable fund balance classification reflects amounts that are not in spendable form. Examples include inventory, prepaid items, the long‐term portion of loans receivable, and nonfinancial assets held for resale. This classification also reflects amounts that are in spendable form but that are legally or contractually required to remain intact, such as the principal of a permanent endowment.

27 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

E. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, Fund Balance and Net Position (continued)

Fund Balance (continued) Restricted ‐ The restricted fund balance classification reflects amounts subject to externally imposed and legally enforceable constraints. Such constraints may be imposed by creditors, grantors, contributors, or laws or regulations of other governments, or may be imposed by law through constitutional provisions or enabling legislation.

Committed ‐ The committed fund balance classification reflects amounts subject to internal constraints self‐ imposed by formal action of the Governing Board. The constraints giving rise to committed fund balance must be imposed no later than the end of the reporting period. The actual amounts may be determined subsequent to that date but prior to the issuance of the financial statements. In contrast to restricted fund balance, committed fund balance may be redirected by the government to other purposes as long as the original constraints are removed or modified in the same manner in which they were imposed, that is, by the same formal action of the Governing Board.

Assigned ‐ The assigned fund balance classification reflects amounts that the government intends to be used for specific purposes. Assignments may be established either by the Governing Board or by a designee of the governing body, and are subject to neither the restricted nor committed levels of constraint. In contrast to the constraints giving rise to committed fund balance, constraints giving rise to assigned fund balance are not required to be imposed, modified, or removed by formal action of the Governing Board. The action does not require the same level of formality and may be delegated to another body or official. Additionally, the assignment need not be made before the end of the reporting period, but rather may be made any time prior to the issuance of the financial statements.

Unassigned ‐ In the General Fund only, the unassigned fund balance classification reflects the residual balance that has not been assigned to other funds and that is not restricted, committed, or assigned to specific purposes. However, deficits in any fund, including the General Fund that cannot be eliminated by reducing or eliminating amounts assigned to other purposes are reported as negative unassigned fund balance.

The District applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

28 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

F. Interfund Activity

Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented in the financial statements. Interfund transfers are eliminated in the governmental activities columns of the statement of activities.

G. Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

H. Budgetary Data

The budgetary process is prescribed by provisions of the California Education Code and requires the governing board to hold a public hearing and adopt an operating budget no later than July 1 of each year. The District governing board satisfied these requirements. The adopted budget is subject to amendment throughout the year to give consideration to unanticipated revenue and expenditures primarily resulting from events unknown at the time of budget adoption with the legal restriction that expenditures cannot exceed appropriations by major object account.

The amounts reported as the original budgeted amounts in the budgetary statements reflect the amounts when the original appropriations were adopted. The amounts reported as the final budgeted amounts in the budgetary statements reflect the amounts after all budget amendments have been accounted for. For purposes of the budget, on‐behalf payments have not been included as revenue and expenditures as required under generally accepted accounting principles.

I. Property Tax

Secured property taxes attach as an enforceable lien on property as of January 1. Taxes are payable in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured property taxes are payable in one installment on or before August 31. The County Auditor‐Controller bills and collects the taxes on behalf of the District. Local property tax revenues are recorded when received.

29 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

J. New Accounting Pronouncements

GASB Statement No. 68 – In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regard to providing decision‐useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. The Statement is effective for periods beginning after June 15, 2014. The District has implemented GASB Statement No. 68 for the year ended June 30, 2015.

GASB Statement No. 71 – In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. This standard seeks to clarify certain implementation issues related to amounts that are deferred and amortized at the time GASB 68 is first adopted. It applies to situations in which the measurement date of an actuarial valuation differs from the governmentʹs fiscal year. The Statement is effective for periods beginning after June 15, 2014. The District has implemented GASB Statement No. 71 for the year ended June 30, 2015.

GASB Statement No. 72 – In February 2015, GASB issued Statement No. 72, Fair Value Measurement and Application. This standard addresses accounting and financial reporting issues related to fair value measurements. The Statement is effective for periods beginning after June 15, 2015. The District has not yet determined the impact on the financial statements.

GASB Statement No. 73 – In June 2015, GASB issued Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. This standard establishes requirements for defined benefit pensions that are not within the scope of GASB Statement 68 and amends certain provisions of GASB Statements 67 and 68. The Statement is effective for periods beginning after June 15, 2016. The District has not yet determined the impact on the financial statements.

GASB Statement No. 75 – In June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This standard’s primary objective is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions. The Statement is effective for periods beginning after June 15, 2017. The District has not yet determined the impact on the financial statements.

30 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 2 – CASH AND INVESTMENTS

A. Summary of Cash and Investments

Governmental Fiduciary Funds Funds Cash in county $ 36,502,823 $ 998,642 Cash with fiscal agent 12,458,571 2,149,107 Cash in revolving fund 23,500 ‐ Total cash and cash equivalents $ 48,984,894 $ 3,147,749

Investments$ 946,938 $ ‐

B. Policies and Practices

The District is authorized under California Government Code to make direct investments in local agency bonds, notes, or warrants within the state; U.S. Treasury instruments; registered state warrants or treasury notes; securities of the U.S. Government, or its agencies; bankers acceptances; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements; medium term corporate notes; shares of beneficial interest issued by diversified management companies, certificates of participation, obligations with first priority security; collateralized mortgage obligations; and the County Investment Pool.

Investment in County Treasury – The District maintains substantially all of its cash in the County Treasury in accordance with Education Code Section 41001. The Contra Costa County Treasurer’s pooled investments are managed by the County Treasurer who reports on a monthly basis to the board of supervisors. In addition, the function of the County Treasury Oversight Committee is to review and monitor the County’s investment policy. The committee membership includes the Treasurer and Tax Collector, the Auditor‐Controller, Chief Administrative Officer, Superintendent of Schools Representative, and a public member. The fair value of the Districtʹs investment in the pool is based upon the Districtʹs pro‐rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized cost basis.

Cash with a Fiscal Agent – Cash with a fiscal agent consist of earned retention funds, held in escrow at the Contra Costa County Treasury.

31 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 2 – CASH AND INVESTMENTS (continued)

C. Policies and Practices (continued)

Local Agency Investment Fund (LAIF) ‐The District may also invest in the State of California’s Local Agency Investment Fund (LAIF) administered by the State Treasurer. California law restricts the Treasurer to investments in the following categories: U.S. Government securities, securities of federally sponsored agencies, domestic corporate bonds, interest bearing time deposits in California banks and savings and loan associations, prime‐rated commercial paper, repurchase and reverse repurchase agreements, security loans, banker’s acceptances, negotiable certificates of deposit and loans to various bond funds. . Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty‐four hours without loss of interest or principal. The full faith and credit of the State of California secure investments in LAIF.

LAIF is currently unrated as to credit risk. LAIF investments are audited annually by the Pooled Money Investment Board and the State Controller’s Office. Copies of this audit may be obtained from the State Treasurer’s Office, 915 Capitol Mall, Sacramento, CA 95814. The Pooled Money Investment Board has established policies, goals and objectives to make certain that their goal of safety, liquidity, and yield are not jeopardized and that prudent management prevails. The State Controller’s Office, as well as an in‐house audit process involving three separate divisions, audits all investments on a daily basis.

D. General Authorizations

Except for investments by trustees of debt proceeds, the authority to invest District funds deposited with the county treasury is delegated to the County Treasurer and Tax Collector. Additional information about the investment policy of the County Treasurer and Tax Collector may be obtained from its website. The table below identifies the investment types permitted by California Government Code.

Maximum Maximum Maximum Remaining Percentage of Investment in Authorized Investment Type Maturity Portfolio One Issuer Local Agency Bonds, Notes, Warrants 5 years None None Registered State Bonds, Notes, Warrants 5 years None None U. S. Treasury Obligations 5 years None None U. S. Agency Securities 5 years None None Banker’s Acceptance 180 days 40% 30% Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Repurchase Agreements 1 year None None Reverse Repurchase Agreements 92 days 20% of base None Medium‐Term Corporate Notes 5 years 30% None Mutual Funds N/A 20% 10% Money Market Mutual Funds N/A 20% 10% Mortgage Pass‐Through Securities 5 years 20% None County Pooled Investment Funds N/A None None Local Agency Investment Fund (LAIF) N/A None None Joint Powers Authority Pools N/A None None

32 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 2 – CASH AND INVESTMENTS (continued)

E. Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District manages its exposure to interest rate risk by investing in the County Treasury. The District maintains a pooled investment with the County Treasury with a fair value of approximately $37,514,798 and an amortized book value of $37,501,465. The average weighted maturity for this pool is 215 days.

F. Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The investments in the County Treasury are not required to be rated. As of June 30, 2015, the pooled investments in the County Treasury was rated AAAf/S1+.

G. Custodial Credit Risk – Deposits

This is the risk that in the event of a bank failure, the Districtʹs deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. However, the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105 percent of the secured deposits. As of June 30, 2015, the Districtʹs bank balance was not exposed to custodial credit risk.

33 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 3 – ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2015 consisted of the following:

Non‐Major Total Governmental Governmental General Fund Building Fund Funds Activities Federal Government Categorical aid$ 362,376 $ ‐ $ 25,169 $ 387,545 State Government Apportionment 145,380 ‐ ‐ 145,380 Categorical aid 328,170 ‐ 23,629 351,799 Lottery 239,618 ‐ ‐ 239,618 Local Government Other local sources 1,077,651 464,899 40,435 1,582,985 Total $ 2,153,195 $ 464,899 $ 89,233 $ 2,707,327

NOTE 4 – CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2015 was as follows:

Balance Balance July 01, 2014 Additions Deletions June 30, 2015 Governmental Activities Capital assets not being depreciated Land$ 1,905,037 $ ‐ $ ‐ $ 1,905,037 Construction in progress 843,632 3,127,483 ‐ 3,971,115 Total Capital Assets not Being Depreciated 2,748,669 3,127,483 ‐ 5,876,152 Capital assets being depreciated Land improvements 36,233,952 184,801 ‐ 36,418,753 Buildings & improvements 187,756,367 2,603,612 ‐ 190,359,979 Furniture & equipment 4,710,043 125,186 ‐ 4,835,229 Total Capital Assets Being Depreciated 228,700,362 2,913,599 ‐ 231,613,961 Less Accumulated Depr eciat ion Land improvements 19,432,759 1,304,349 ‐ 20,737,108 Buildings & improvements 48,715,536 3,881,534 ‐ 52,597,070 Furniture & equipment 3,450,810 389,429 ‐ 3,840,239 Total Accumulated Depreciation 71,599,105 5,575,312 ‐ 77,174,417 Governmental Activities Capital Assets, net $ 159,849,926 $ 465,770 $ ‐ $ 160,315,696

34 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 5 – INTERFUND TRANSACTIONS

Operating Transfers

Interfund transfers for the year ended June 30, 2015 consisted of the following:

Interfund Transfers In

Special Reserve Non‐Major Fund for Capital Governmental Interfund Transfers Out Building Fund Outlay Projects Funds Total General Fund$ 84,596 $ ‐ $ 45,000 $ 129,596 Building Fund ‐ 579,304 220,000 799,304 Total Interfund Transfers $ 84,596 $ 579,304 $ 265,000 $ 928,900

Transfer from the General Fund to the Non‐Major Cafeteria Fund for expenses$ 45,000 Transfer from the General Fund to the Building Fund for construction expenses 84,596 Transfer from the Building Fund to the Non‐Major Defer r ed Maintenance Fund for expenses 220,000 Transfer from the Building Fund to the Special Reserve for Capital Outlay Fund for expenses 579,304 Total $ 928,900

NOTE 6 – ACCRUED LIABILITIES

Accrued liabilities at June 30, 2015 consisted of the following:

Non‐Major Total Governmental Governmental General Fund Building Fund Funds District‐Wide Activities Payroll$ 271,928 $ 38,473 $ 68,392 $ ‐ $ 378,793 Construction ‐ 1,532,065 ‐ ‐ 1,532,065 Vendors payable 992,312 ‐ 120,871 ‐ 1,113,183 Unmatured interest ‐ ‐ ‐ 2,182,052 2,182,052 Total $ 1,264,240 $ 1,570,538 $ 189,263 $ 2,182,052 $ 5,206,093

NOTE 7 – UNEARNED REVENUE

Unearned revenue at June 30, 2015, consisted of the following:

Non‐Major Total Governmental Governmental General Fund Funds Activities Federal sources$ 104,993 $ ‐ $ 104,993 Local sources ‐ 64,269 64,269 Total $ 104,993 $ 64,269 $ 169,262

35 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT

A schedule of changes in long‐term debt for the year ended June 30, 2015 consisted of the following:

Restated Balance Balance Balance Due July 01, 2014 Additions Deductions June 30, 2015 In One Year Governmental Activities General obligation bonds$ 187,096,666 $ 46,252,402 $ 23,031,163 $ 210,317,905 $ 5,367,235 Unamortized premium 4,053,522 1,680,000 514,707 5,218,815 514,707 Unamortized discount (716,712) ‐ (77,745) (638,967) (77,745) Accreted interest 20,892,822 784,163 16,552,996 5,123,989 ‐ Total general obligation bonds 211,326,298 48,716,565 40,021,121 220,021,742 5,804,197 Compensated absences 459,192 ‐ 60,313 398,879 ‐ Net OPEB obligation 2,716,050 ‐ 140,824 2,575,226 ‐ Net pension liability 56,493,022 ‐ 11,408,747 45,084,275 ‐ Total $ 270,994,562 $ 48,716,565 $ 51,631,005 $ 268,080,122 $ 5,804,197

Payments for general obligation bonds are made in the Bond Interest and Redemption Fund.

Payments for compensated absences are typically liquidated in the General Fund and the Non‐Major Governmental Funds.

A. Compensated Absences

Total unpaid employee compensated absences as of June 30, 2015 amounted to $398,879. This amount is included as part of long‐term liabilities in the government‐wide financial statements.

B. General Obligation Bonds

The District’s General Obligation Bonds represent general obligations payable solely from ad valorem property taxes. The outstanding general obligation debt of the District as of June 30, 2015 was as follows:

Bonds Bonds Issue Maturity Interest Original Outstanding Outstanding

Series Date Date Rate Issue July 01, 2014 Additions Deductions June 30, 2015 2000 Refunding 12/29/2000 8/1/2014 4.375 ‐ 5.5%$ 21,925,000 $ 1,270,000 $ ‐ $ 1,270,000 $ ‐ 2002 Series B CAB 10/28/2002 8/1/2018 7.56% 6,839,940 3,427,742 ‐ 267,859 3,159,883 2002 Series B CAB‐ Accreted Interest 4,711,966 580,833 372,140 4,920,659 2004 Refunding A 4/6/2004 8/1/2022 2.00 ‐ 5.00% 26,835,000 20,585,000 ‐ 1,605,000 18,980,000 2004 Refunding B 5/2/2004 8/1/2015 5.00% 6,555,000 1,375,000 ‐ 670,000 705,000 2005 A Refunding 1/18/2005 8/1/2024 4.5 ‐ 5.25% 46,425,000 2,625,000 ‐ 1,055,000 1,570,000 2005 B Refunding 11/29/2005 8/1/2025 4.0 ‐ 5.25% 20,530,000 50,000 ‐ ‐ 50,000 2008 Series A CAB 3/30/2010 8/1/2035 5.5 ‐ 6.4% 29,999,818 29,999,818 ‐ 3,866,002 26,133,816 2008 Series A CAB ‐ Accreted Interest 9,239,549 ‐ 9,239,549 ‐ 2008 Series B CAB 8/1/2011 8/1/2046 5.65 ‐ 7.30% 37,999,106 37,999,106 ‐ 13,677,302 24,321,804 2008 Series B CAB ‐ Accreted Interest 6,941,307 ‐ 6,941,307 ‐ 2012 Refunding 8/1/2012 8/1/2024 2.0 ‐ 4.0% 19,410,000 19,130,000 ‐ ‐ 19,130,000 2012 Refunding B 9/6/2012 8/1/2025 1.3 ‐ 3.5% 24,720,000 24,720,000 ‐ ‐ 24,720,000 2013 Refunding B 5/2/2013 8/1/2024 .35 ‐ 2.931% 45,915,000 45,915,000 ‐ 620,000 45,295,000 2014 Refunding 11/13/2014 8/1/2046 4.1 ‐ 5.040% 31,252,402 ‐ 31,252,402 ‐ 31,252,402 2014 Refunding ‐ Accreted Interest ‐ 203,330 ‐ 203,330 Bond Anticpation Note 11/13/2014 8/1/2017 5.00% 15,000,000 ‐ 15,000,000 ‐ 15,000,000 $ 207,989,488 $ 47,036,565 $ 39,584,159 $ 215,441,894

36 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT (continued)

B. General Obligation Bonds (continued)

The 2002 Series B CAB general obligation bonds outstanding were as follows:

2002 Series B CAB Year Ended June 30, Principal Interest Total 2016$ 882,235 $ ‐ $ 882,235 2017 813,829 ‐ 813,829 2018 757,394 ‐ 757,394 2019 706,425 ‐ 706,425 Accretion 4,711,966 (4,711,966) ‐ Total$ 7,871,849 $ (4,711,966) $ 3,159,883

The 2004 Refunding A general obligation bonds outstanding were as follows:

2004 Refunding A Year Ended June 30, Principal Interest Total 2016$ 1,380,000 $ 767,594 $ 2,147,594 2017 2,210,000 677,844 2,887,844 2018 2,315,000 576,294 2,891,294 2019 2,395,000 482,094 2,877,094 2020 2,480,000 ‐ 2,480,000 2021 ‐ 2025 8,200,000 ‐ 8,200,000 Total$ 18,980,000 $ 2,503,826 $ 21,483,826

The 2004 Refunding B general obligation bonds outstanding were as follows:

2004 Refunding B Year Ended June 30, Principal Interest Total 2016$ 705,000 $ 17,265 $ 722,265 Total$ 705,000 $ 17,265 $ 722,265

The 2005 A Refunding general obligation bonds outstanding were as follows:

2005 A Refunding Year Ended June 30, Principal Interest Total 2016$ 1,570,000 $ ‐ $ 1,570,000 Total$ 1,570,000 $ ‐ $ 1,570,000

37 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT (continued)

B. General Obligation Bonds (continued)

The 2005 B Refunding general obligation bonds outstanding were as follows:

2005 B Refunding Year Ended June 30, Principal Interest Total 2016$ 50,000 $ ‐ $ 50,000 Total$ 50,000 $ ‐ $ 50,000

The 2008 Series A CAB general obligation bonds outstanding were as follows:

2008 Series A CAB Year Ended June 30, Principal Interest Total 2016 $ ‐ $ ‐ $ ‐ 2017 ‐ ‐ ‐ 2018 ‐ ‐ ‐ 2019 ‐ ‐ ‐ 2020 ‐ ‐ ‐ 2021 ‐ 2025 ‐ ‐ ‐ 2026 ‐ 2030 963,577 22,807,398 23,770,975 2031 ‐ 2035 8,028,302 28,482,673 36,510,975 2036 ‐ 2040 17,141,937 32,011,387 49,153,324 Total$ 26,133,816 $ 83,301,458 $ 109,435,274

The 2008 Series B CAB general obligation bonds outstanding were as follows:

2008 Series B CAB Year Ended June 30, Principal Interest Total 2016 $ ‐ $ ‐ $ ‐ 2017 ‐ ‐ ‐ 2018 ‐ ‐ ‐ 2019 ‐ ‐ ‐ 2020 ‐ ‐ ‐ 2021 ‐ 2025 ‐ ‐ ‐ 2026 ‐ 2030 3,560,475 20,453,539 24,014,014 2031 ‐ 2035 7,427,962 22,204,121 29,632,083 2036 ‐ 2040 13,333,367 23,062,716 36,396,083 Total$ 24,321,804 $ 65,720,376 $ 90,042,180

38 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT (continued)

B. General Obligation Bonds (continued)

The 2012 Refunding general obligation bonds outstanding were as follows:

2012 Refunding Year Ended June 30, Principal Interest Total 2016 $ ‐ $ ‐ $ ‐ 2017 ‐ ‐ ‐ 2018 ‐ ‐ ‐ 2019 2,000,000 765,200 2,765,200 2020 17,130,000 ‐ 17,130,000 Total$ 19,130,000 $ 765,200 $ 19,895,200

The 2012 Refunding B general obligation bonds outstanding were as follows:

2012 Refunding B Year Ended June 30, Principal Interest Total 2016 $ ‐ $ ‐ $ ‐ 2017 300,000 751,092 1,051,092 2018 300,000 747,192 1,047,192 2019 305,000 742,692 1,047,692 2020 315,000 736,745 1,051,745 2021 ‐ 2025 21,580,000 2,914,023 24,494,023 2026 1,920,000 67,200 1,987,200 Total$ 24,720,000 $ 5,958,944 $ 30,678,944

The 2013 Refunding B general obligation bonds outstanding were as follows:

2013 Refunding B Year Ended June 30, Principal Interest Total 2016$ 780,000 $ 1,083,603 $ 1,863,603 2017 3,195,000 3,324,784 6,519,784 2018 3,985,000 1,666,057 5,651,057 2019 4,830,000 1,664,734 6,494,734 2020 5,775,000 ‐ 5,775,000 2021 ‐ 2025 26,730,000 ‐ 26,730,000 Total$ 45,295,000 $ 7,739,178 $ 53,034,178

39 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT (continued)

B. General Obligation Bonds (continued)

The 2014 Refunding general obligation bonds outstanding were as follows:

2014 Refunding Year Ended June 30, Principal Interest Total 2016 $ ‐ $ ‐ $ ‐ 2017 ‐ ‐ ‐ 2018 ‐ ‐ ‐ 2019 ‐ ‐ ‐ 2020 ‐ ‐ ‐ 2021 ‐ 2025 4,845,110 3,724,990 8,570,100 2026 ‐ 2030 1,743,928 1,701,072 3,445,000 2031 ‐ 2035 ‐ ‐ ‐ 2036 ‐ 2040 ‐ ‐ ‐ 2041 ‐ 2045 17,890,455 50,644,545 68,535,000 2046 ‐ 2047 6,772,909 25,052,091 31,825,000 Accretion 203,330 (203,330) ‐ Total$ 31,455,732 $ 80,919,368 $ 112,375,100

Bond Anticipation Notes

The District issued a bond anticipation note November 1, 2014. The bond anticipation notes outstanding were as follows:

Bond Anticpation Note Year Ended June 30, Principal Interest Total 2016 $ ‐ $ 750,000 $ 750,000 2017 15,000,000 750,000 15,750,000 Total$ 15,000,000 $ 1,500,000 $ 16,500,000

40 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 8 – LONG‐TERM DEBT (continued)

C. Net Pension Liability

The District follows GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The District’s restated beginning net pension liability was $56,493,022, and decreased by $11,408,747 during the year ended June 30, 2015. The ending net pension liability at June 30, 2015 was $45,084,275. See Note 11 for additional information regarding the net pension liability.

NOTE 9 – FUND BALANCES

Fund balances were composed of the following elements at June 30, 2015:

Special Reserve Non‐Major Total Fund for Capital Bond Interest & Governmental Governmental General Fund Building Fund Outlay Projects Redemption Fund Funds Funds Non‐spendable Revolving cash$ 17,000 $ ‐ $ ‐ $ ‐ $ 6,500 $ 23,500 Prepaid expenditures 6,134 ‐ ‐ ‐ ‐ 6,134 Total non‐spendable 23,134 ‐ ‐ ‐ 6,500 29,634 Restricted Educat ional programs 1,071,747 ‐ ‐ ‐ 708 1,072,455 Capital projects ‐ 15,661,738 11,497,458 ‐ 2,266,298 29,425,494 Deb t service ‐ ‐ ‐ 9,470,228 ‐ 9,470,228 Foos service ‐ ‐ ‐ ‐ 4,415 4,415 Total restricted 1,071,747 15,661,738 11,497,458 9,470,228 2,271,421 39,972,592 Committed Adult Education ‐ ‐ ‐ ‐ 143,770 143,770 Defer r ed Maintenance ‐ ‐ ‐ ‐ 1,091,139 1,091,139 Total committed ‐ ‐ ‐ ‐ 1,234,909 1,234,909 Assigned Other Assignments 4,440,742 ‐ ‐ ‐ ‐ 4,440,742 Total assigned 4,440,742 ‐ ‐ ‐ ‐ 4,440,742 Unassigned Reserve for economic uncertainties 3,774,113 ‐ ‐ ‐ ‐ 3,774,113 Total unassigned 3,774,113 ‐ ‐ ‐ ‐ 3,774,113 Total $ 9,309,736 $ 15,661,738 $ 11,497,458 $ 9,470,228 $ 3,512,830 $ 49,451,990

The District is committed to maintaining a prudent level of financial resources to protect against the need to reduce service levels because of temporary revenue shortfalls or unpredicted expenditures. The District’s Minimum Fund Balance Policy requires a Reserve for Economic Uncertainties, consisting of unassigned amounts, equal to no less than 3 percent of General Fund expenditures and other financing uses.

41 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)

A. Plan Description and Contribution Information

The District provides medical, dental and vision benefits to retirees and their covered eligible dependents. The District pays a portion of the medical costs for eligible retirees only. Retirees must pay the entire cost for dental, vision, and dependent medical benefits. All active employees who retire directly from the District and meet the eligibility criteria may participate.

Membership of the plan consisted of the following:

Retirees and beneficiaries receiving benefits 220 Active plan members 467 Total* 687

Number of participating employers 1

*As of July 1, 2013 actuarial study

B. Funding Policy

The contribution requirements of Plan members and the District are established and may be amended by the District and District’s bargaining units. The required contribution is based on projected pay‐as‐you‐go financing requirements. For fiscal year 2015, the District contributed $1,934,881 to the Plan, $1,299,881 was used for current premiums and $635,000 was put into the California Employers’ Retiree Benefit Trust Fund (CERBT) to finance future costs.

As of June 30, 2015, the District has not established a plan or equivalent that contains an irrevocable transfer of assets dedicated to providing benefits to retirees in accordance with the terms of the plan and that are legally protected from creditors.

42 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (continued)

C. Annual OPEB Cost and Net OPEB Obligation

The District’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 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 accrued liabilities (UAAL) (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the District’s net OPEB obligation to the Plan:

Annual required contribution$ 1,780,595 Interest on net OPEB obligation 141,235 Adjustment to annual required contribution (127,773) Annual OPEB cost (expense) 1,794,057 CERBT contribution (635,000) Contributions made (1,299,881) Increase (decrease) in net OPEB obligation (140,824) Net OPEB obligation, beginning of the year 2,716,050 Net OPEB obligation, end of the year$ 2,575,226

The annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for the year ended June 30, 2015 and the preceding two years were as follows:

Annual OPEB Percentage Net OPEB Year Ended June 30, Cost Contributed Obligation 2015$ 1,794,057 72%$ 2,575,226 2014$ 1,993,821 100%$ 2,716,050 2013$ 1,388,201 58%$ 1,631,094

43 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 10 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) (continued)

D. Funded Status and Funding Progress

The funded status of the plan as of the most recent actuarial evaluation consists of the following:

Actuarial Actuarial Accrued Unfunded UAAL as a Valuation Actuarial Valuation Liability AAL Covered Percentage of Date of Assets (AAL) (UAAL) Funded Ratio Payroll Covered Payroll July 1, 2013$ 448,036 $ 13,929,342 $ 13,481,306 3%$ 36,985,402 36%

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. Examples include assumptions about future employment, investment returns, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future.

The schedule of funding progress, presented as required supplementary information following the notes to financial statements, 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.

E. Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short‐term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long‐term perspective of the calculations.

Additional information as of the latest actuarial valuation follows:

Valuation Date 7/1/2013

Actuarial Cost Method Entry Age Normal

Amortization Method Level‐percentage of payroll

Remaining Amortization Period 30

Asset Valuation $ ‐

Actuarial Assumptions: Investment rate of return 5.2%

Discount rate 5.2%

Health care trend rate 4.0%

Inflation rate 2.8% 44 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS

Qualified employees are covered under multiple‐employer contributory retirement plans maintained by agencies of the State of California. Certificated employees are members of the California State Teachersʹ Retirement System (CalSTRS), and classified employees are members of the California Public Employeesʹ Retirement System (CalPERS). The District recognized $3,885,141 for their proportionate share of pension expense for the year ended June 30, 2015.

California State Teachers’ Retirement System (CalSTRS)

Plan Description The District contributes to the California State Teachersʹ Retirement System (CalSTRS); a cost‐sharing multiple employer public employee retirement system defined benefit pension plan administered by CalSTRS. The plan provides retirement and disability benefits and survivor benefits to beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the State Teachersʹ Retirement Law. CalSTRS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the CalSTRS annual financial report may be obtained from CalSTRS, 7919 Folsom Blvd., Sacramento, CA 95826.

Benefits provided The CalSTRS defined benefit plan has two benefit formulas:

CalSTRS 2% at 60: Members first hired on or before December 31, 2012, to perform service that could be creditable to CalSTRS

CalSTRS 2% at 62: Members first hired on or after January 1, 2013, to perform service that could be creditable to CalSTRS

CalSTRS 2% at 60 CalSTRS 2% at 60 members are eligible for normal retirement at age 60, with a minimum of five years of credited service. The normal retirement benefit is equal to 2.0 percent of final compensation for each year of credited service. Early retirement options are available at age 55 with five years of credited service or as early as age 50 with 30 years of credited service. The age factor for retirements after age 60 increases with each quarter year of age to 2.4 percent at age 63 or older. Members who have 30 years or more of credited service receive an additional increase of up to 0.2 percent to the age factor, known as the career factor. The maximum benefit with the career factor is 2.4 percent of final compensation.

CalSTRS 2% at 62 CalSTRS 2% at 62 members are eligible for normal retirement at age 62, with a minimum of five years of credited service. The normal retirement benefit is equal to 2.0 percent of final compensation for each year of credited service. An early retirement option is available at age 55. The age factor for retirement after age 62 increases with each quarter year of age to 2.4 percent at age 65 or older.

45 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California State Teachers’ Retirement System (CalSTRS) (continued)

Contributions Active plan members are required to contribute 8.15% of their salary for fiscal year 2015 and the District is required to contribute an actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those adopted by CalSTRS Teachersʹ Retirement Board. The required employer contribution rate for fiscal year 2015 was 8.88% of annual payroll. The contribution requirements of the plan members are established by state statute. Contributions to the plan from the District were $2,537,026 for the year ended June 30, 2015.

On‐Behalf Payments The District was the recipient of on‐behalf payments made by the State of California to CalSTRS for K‐12 education. These payments consist of state general fund contributions of approximately $1,461,251 to CalSTRS (5.679% of 2012‐13 creditable compensation subject to CalSTRS).

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the District reported a liability for its proportionate share of the net pension liability that reflected a reduction for State pension support provided to the District. The amount recognized by the District as its proportionate share of the net pension liability, the related State support, and the total portion of the net pension liability that was associated with the District were as follows:

Dist r ict ʹs proportionate share of the net pension liability$ 36,262,600 Statesʹs proportionate share of the net pension liability associated with the District 21,896,923 Total$ 58,159,523

The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by applying update procedures to an actuarial valuation as of June 30, 2013, and rolling forward the total pension liability to June 30, 2014. The District’s proportion of the net pension liability was based on a projection of the District’s long‐term share of contributions to the pension plan relative to the projected contributions of all participating school districts, actuarially determined. At June 30, 2014, the District’s proportion was 0.062 percent, which did not change from its proportion measured as of June 30, 2013.

46 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California State Teachers’ Retirement System (CalSTRS) (continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) For the year ended June 30, 2015, the District recognized pension expense of $3,130,407. In addition, the District recognized pension expense and revenue of $1,890,294 for support provided by the State. At June 30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Differences between projected and actual earnings on plan investments $ ‐ $ 8,929,596 Dist r ict contributions subsequent to the measurement date 2,537,026 ‐ $ 2,537,026 $ 8,929,596

$2,537,026 reported as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Deferred Inflows Year Ended June 30, of Resources 2016$ 2,232,399 2017 2,232,399 2018 2,232,399 2019 2,232,399 $ 8,929,596

Actuarial assumptions The total pension liability was determined by applying update procedures to an actuarial valuation as of June 30, 2013, and rolling forward the total pension liability to June 30, 2014 using the following actuarial assumptions, applied to all periods included in the measurement:

Consumer Price Inflation 3.00% Investment Yield (Net of Expenses) 7.50% Wage Inflation 3.75% Interest on Member Accounts 4.50%

47 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California State Teachers’ Retirement System (CalSTRS) (continued)

Actuarial assumptions (continued) CalSTRS uses custom mortality tables to best fit the patterns of mortality among its members. These custom tables are based on RP2000 series tables adjusted to fit CalSTRS experience.

The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2006−June 30, 2010.

The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The best‐estimate ranges were developed using capital market assumptions from CalSTRS general investment consultant (Pension Consulting Alliance ‐ PCA) as an input to the process. Based on the model from CalSTRS consulting actuary’s (Milliman) investment practice, a best estimate range was determined by assuming the portfolio is re‐balanced annually and that annual returns are lognormally distributed and independent from year to year to develop expected percentiles for the long‐term distribution of annualized returns. The assumed asset allocation by PCA is based on board policy for target asset allocation in effect on February 2, 2012, the date the current experience study was approved by the board. Best estimates of 10‐year geometric real rates of return and the assumed asset allocation for each major asset class used as input to develop the actuarial investment rate of return are summarized in the following table:

Long‐Term* Assumed Asset Expected Real Asset Class Allocation Rate of Return Global Equity 47% 4.50% Private Equity 12% 6.20% Real Estate 15% 4.35% Inflation Sensitive 5% 3.20% Fixed Income 20% 0.20% Cash/Liquidity 1% 0.00% 100%

* 10‐year geometric average

Discount rate The discount rate used to measure the total pension liability was 7.60 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at statutory contribution rates in accordance with the rate increases per AB 1469. Projected inflows from investment earnings were calculated using the long‐term assumed investment rate of return (7.60 percent) and assuming that contributions, benefit payments, and administrative expense occur midyear. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the long‐term assumed investment rate of return was applied to all periods of projected benefit payments to determine the total pension liability

48 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California State Teachers’ Retirement System (CalSTRS) (continued)

Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 7.60 percent, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower (6.60 percent) or 1‐percentage‐point higher (8.60 percent) than the current rate:

1% Current 1% Decrease Discount Rate Increase (6.60%) (7.60%) (8.60%) Dist r ict ʹs proportionate share of the net pension liability$ 56,523,909 $ 36,262,600 $ 19,368,350

Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalSTRS financial report.

49 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California Public Employees’ Retirement System (CalPERS)

Plan Description The District contributes to the School Employer Pool under the California Public Employeesʹ Retirement System (CalPERS); a cost‐sharing multiple‐employer public employee retirement system defined benefit pension plan administered by CalPERS. The plan provides retirement and disability benefits, annual cost‐of‐living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by state statutes, as legislatively amended, within the Public Employeesʹ Retirement Laws. CalPERS issues a separate comprehensive annual financial report that includes financial statements and required supplementary information. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95811.

Benefits provided The benefits for the defined benefit plan are based on members’ years of service, age, final compensation, and benefit formula. Benefits are provided for disability, death, and survivors of eligible members or beneficiaries. Members become fully vested in their retirement benefits earned to date after five years of credited service.

Contributions Active plan members who entered into the plan prior to January 1, 2013 are required to contribute 7.0% of their salary. The California Public Employees’ Pension Reform Act (PEPRA) specifies that new members entering into the plan on or after January 1, 2013, shall pay the higher of fifty percent of normal costs or 6.0% of their salary. Additionally, for new members entering the plan on or after January 1, 2013, the employer is prohibited from paying any of the employee contribution to CalPERS unless the employer payment of the member’s contribution is specified in an employment agreement or collective bargaining agreement that expires after January 1, 2013.

The District is required to contribute an actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal year 2015 was 11.771% of annual payroll. Contributions to the plan from the District were $953,359 for the year ended June 30, 2015.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2015, the District reported a liability of $8,821,675 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by applying update procedures to an actuarial valuation as of June 30, 2013, and rolling forward the total pension liability to June 30, 2014. The District’s proportion of the net pension liability was based on a projection of the District’s long‐term share of contributions to the pension plan relative to the projected contributions of all participating school districts, actuarially determined. At June 30, 2014, the District’s proportion was 0.078 percent, which decreased by 0.001 percent from its proportion measured as of June 30, 2013.

50 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California Public Employees’ Retirement System (CalPERS) (continued)

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) For the year ended June 30, 2015, the District recognized pension expense of $754,734. At June 30, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources

Differ ences between projected and actual earnings on plan investments $ ‐ $ 3,031,226 Changes in proportion and differences between Dist r ict contributions and proportionate share of contributions ‐ 117,330 Dist r ict contributions subsequent to the measurement date 953,359 ‐ $ 953,359 $ 3,148,556

$953,359 reported as deferred outflows of resources related to pensions resulting from District contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Deferred Inflows Year Ended June 30, of Resources 2016$ 787,139 2017 787,139 2018 787,139 2019 787,139 $ 3,148,556

Consumer Price Inflation 2.75% Investment Yield (Net of Expenses) 7.50% Wage Inflation Varies by Ent r y Age and Service

CalPERS uses custom mortality tables to best fit the patterns of mortality among its members. These custom tables are derived using CalPERS’ membership data for all funds. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB.

51 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California Public Employees’ Retirement System (CalPERS) (continued)

Actuarial assumptions (continued) The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011.

The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long‐term expected rate of return, both short‐term and long‐term market return expectations as well as the expected pension fund cash flows were taken into account. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short‐term (first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short‐term and long‐term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects long‐term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Assumed Asset Real Return Real Return Asset Class Allocation Years 1‐10* Years 11+** Global Equity 47% 5.25% 5.71% Global Fixed Income 19% 0.99% 2.43% Inflation Sensitive 6% 0.45% 3.36% Private Equity 12% 6.83% 6.95% Real Estate 11% 4.50% 5.13% Infrastructure and Forestland 3% 4.50% 5.09% Liquidity 2% ‐0.55% ‐1.05% 100%

* An expected inflation of 2.5% used for this period ** An expected inflation of 3.0% used for this period

52 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 11 – PENSION PLANS (continued)

California Public Employees’ Retirement System (CalPERS) (continued)

Discount rate The discount rate used to measure the total pension liability was 7.50 percent. A projection of the expected benefit payments and contributions was performed to determine if assets would run out. The test revealed the assets would not run out. Therefore the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability for the Schools Pool. The results of the crossover testing for the Schools Pool are presented in a detailed report that can be obtained at CalPERS’ website.

According to Paragraph 30 of Statement 68, the long‐term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability.

Sensitivity of the District’s proportionate share of the net pension liability to changes in the discount rate The following presents the District’s proportionate share of the net pension liability calculated using the discount rate of 7.50 percent, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower (6.50 percent) or 1‐percentage‐point higher (8.50 percent) than the current rate:

1% Current 1% Decrease Discount Rate Increase (6.50%) (7.50%) (8.50%) Dist r ict ʹs proportionate share of the net pension liability$ 15,475,231 $ 8,821,675 $ 3,261,957

Pension plan fiduciary net position Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report.

53 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 12 – COMMITMENTS AND CONTINGENCIES

A. Grants

The District received financial assistance from federal and state agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the District at June 30, 2015.

B. Litigation

The District is involved in various litigation arising from the normal course of business. In the opinion of management and legal counsel, the disposition of all litigation pending is not expected to have a material adverse effect on the overall financial position of the District at June 30, 2015.

C. Construction Commitments

As of June 30, 2015, the District had commitments with respect to unfinished capital projects of $3,090,647.

NOTE 13 – PARTICIPATION IN JOINT POWERS AUTHORITIES

The District participates in four joint ventures under joint powers agreements (JPAs); the Contra Costa County Schools Insurance Group (CCCSIG) for Workersʹ Compensation Insurance; the East Bay Schools Insurance Group (EBSIG) for Property and Liability Insurance, the Schools Excess Liability Fund (SELF) for Excess Liability Insurance, and the Schools Self‐insurance of Contra Costa County (SSICCC) for health benefits. The relationships between the District and the JPAs are such that the JPAs are not component units of the District for financial reporting purposes.

The JPAs arrange for and/or provide coverage for its members. The JPAs are governed by a board consisting of a representative from each member district. Each board controls the operations of their JPAs, including selection of management and approval of operating budgets independent of any influence by the member districts beyond their representation on the Board. Each member district pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to their participation in the JPAs.

The JPAs have budgeting and financial reporting requirements independent of member units, and their financial statements are not presented in these financial statements. However, fund transactions between the JPAs and the District are included in these statements. The audited financial statements are generally available from the respective entities.

54 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO FINANCIAL STATEMENTS, continued JUNE 30, 2015

NOTE 14 – DEFERRED OUTFLOWS/INFLOWS OF RESOURCES

Refunded Debt Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the District recognized deferred outflows of resources in the District‐wide financial statements. The deferred outflow of resources pertains to the difference in the carrying value of the refunded debt and its reacquisition price (deferred amount on refunding). Previous financial reporting standards require this to be presented as part of the District’s long‐term debt. This deferred outflow of resources is recognized as a component of interest expense in a systematic and rational manner over the remaining life of the old debt or the new debt, whichever is shorter. At June 30, 2015, the deferred amount on refunding was categorized as outflows was $7,686,059 and the deferred amount on refunding was categorized as inflows was $3,937,206.

Pension Plans Pursuant to GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27., the District recognized deferred outflows and inflows of resources related to pensions in the District‐wide financial statements. The District’s deferred outflows and inflows of resources related to pensions were as follows at June 30, 2015:

Deferred Deferred inflows outflows related related to to pensions pensions STRS Pension$ 2,537,026 $ 8,929,596 PERS Pension 953,359 3,148,556 Total $ 3,490,385 $ 12,078,152

NOTE 15 – RESTATEMENT OF NET POSITION

The beginning net position of Governmental Activities has been restated in order to record the District’s proportionate share of net pension liability and deferred outflows of resources related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27. The effect on beginning net position is presented as follows:

Governmental Activities Net Position ‐ Beginning, as Previously Reported$ (15,687,219) Restatement (53,277,286) Net Position ‐ Beginning, as Restated$ (68,964,505)

REQUIRED SUPPLEMENTARY INFORMATION

ACALANES UNION HIGH SCHOOL DISTRICT GENERAL FUND – BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED JUNE 30, 2015

Budgeted Amounts Actual* Variances ‐ Original Final (Budgetary Basis) Final to Actual REVENUES LCFF sources$ 38,059,871 $ 40,258,748 $ 41,100,216 $ 841,468 Federal sources 1,247,738 1,163,923 1,125,862 (38,061) Other state sources 1,369,787 2,607,641 2,252,056 (355,585) Other local sources 17,554,342 17,932,488 17,276,475 (656,013) Total Revenues 58,231,738 61,962,800 61,754,609 (208,191)

EXPENDITURES Certificated salaries 28,741,183 28,830,610 28,776,367 54,243 Classified salaries 8,698,171 8,592,081 8,639,826 (47,745) Employee benefits 14,511,752 13,907,531 13,859,385 48,146 Books and supplies 2,674,704 2,134,703 2,029,461 105,242 Services and other operating expenditures 9,010,287 9,188,321 9,245,038 (56,717) Capital outlay 5,500 1,045,610 601,822 443,788 Other outgo Transfers of indirect costs (250,000) (250,000) (250,000) ‐ Total Expenditures 63,391,597 63,448,856 62,901,899 546,957 Excess (Deficiency) of Revenues Over Expenditures (5,159,859) (1,486,056) (1,147,290) 338,766 Other Financing Sources (Uses) Transfers out (241,200) (181,200) (129,596) 51,604 Net Financing Sources (Uses) (241,200) (181,200) (129,596) 51,604

NET CHANGE IN FUND BALANCE (5,401,059) (1,667,256) (1,276,886) 390,370 Fund Balance ‐ Beginning 10,586,622 10,586,622 10,586,622 ‐ Fund Balance ‐ Ending $ 5,185,563 $ 8,919,366 $ 9,309,736 $ 390,370

* The actual amounts reported on this schedule do not agree with the amounts reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the following reasons:

 On behalf payments of $1,461,251 are not included in the actual revenues and expenditures reported in this schedule.

See accompanying note to required supplementary information. 56 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF FUNDING PROGRESS FOR THE YEAR ENDED JUNE 30, 2015

Actuarial Accrued Unfunded UAAL as a Valuation Actuarial Valuation Liability AAL Covered Percentage of Date of Assets (AAL) (UAAL) Funded Ratio Payroll Covered Payroll July 1, 2013$ 448,036 $ 13,929,342 $ 13,481,306 3%$ 36,985,402 36%

*The District does not have an actuarial study prior to July 1, 2013

See accompanying note to required supplementary information. 57 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF THE DISTRICT’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ‐ CALSTRS FOR THE YEAR ENDED JUNE 30, 2015

June 30, 2015

Dist r ict ʹs proportion of the net pension liability 0.062%

Dist r ict ʹs proportionate share of the net pension liability$ 36,262,600

Statesʹs proportionate share of the net pension liability associated with the District 21,896,923 Total$ 58,159,523

Dist r ict ʹs covered‐employee payroll$ 34,424,037

Dist r ict ʹs proportionate share of the net pension liability as a percentage of its covered‐employee payroll 105.3%

Plan fiduciary net position as a percentage of the total pension liability. 76.5%

See accompanying note to required supplementary information. 58 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF THE DISTRICT’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY ‐ CALPERS FOR THE YEAR ENDED JUNE 30, 2015

June 30, 2015

Dist r ict ʹs proportion of the net pension liability 0.078%

Dist r ict ʹs proportionate share of the net pension liability$ 8,821,675

Dist r ict ʹs covered‐employee payroll$ 34,424,037

Dist r ict ʹs proportionate share of the net pension liability as a percentage of its covered‐employee payroll 25.6%

Plan fiduciary net position as a percentage of the total pension liability. 83.4%

See accompanying note to required supplementary information. 59 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF DISTRICT CONTRIBUTIONS ‐ CALSTRS FOR THE YEAR ENDED JUNE 30, 2015

June 30, 2015

Contractually required contribution$ 2,537,026

Contributions in relation to the contractually required contribution* (2,537,026)

Contribution deficiency (excess) $ ‐

Dist r ict ʹs covered‐employee payroll$ 34,424,037

Contributions as a percentage of covered‐employee payroll 7.37%

*Amounts do not include on behalf contributions

See accompanying note to required supplementary information. 60 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF DISTRICT CONTRIBUTIONS ‐ CALPERS FOR THE YEAR ENDED JUNE 30, 2015

June 30, 2015

Contractually required contribution$ 953,359

Contributions in relation to the contractually required contribution (953,359)

Contribution deficiency (excess) $ ‐

Dist r ict ʹs covered‐employee payroll$ 34,424,037

Contributions as a percentage of covered‐employee payroll 2.77%

See accompanying note to required supplementary information. 61 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2015

NOTE 1 – PURPOSE OF SCHEDULES

Budgetary Comparison Schedule This schedule is required by GASB Statement No. 34 as required supplementary information (RSI) for the General Fund and for each major special revenue fund that has a legally adopted annual budget. The budgetary comparison schedule presents both (a) the original and (b) the final appropriated budgets for the reporting period as well as (c) actual inflows, outflows, and balances, stated on the District’s budgetary basis. A separate column to report the variance between the final budget and actual amounts is also presented, although not required.

Schedule of Funding Progress This schedule is required by GASB Statement No. 45 for all sole and agent employers that provide other postemployment benefits (OPEB). The schedule presents, for the most recent actuarial valuation and the two preceding valuations, information about the funding progress of the plan, including, for each valuation, the actuarial valuation date, the actuarial value of assets, the actuarial accrued liability, the total unfunded actuarial liability (or funding excess), the actuarial value of assets as a percentage of the actuarial accrued liability (funded ratio), the annual covered payroll, and the ratio of the total unfunded actuarial liability (or funding excess) to annual covered payroll.

Schedule of the District’s Proportionate Share of the Net Pension Liability This 10‐year schedule is required by GASB Statement No. 68 for each cost‐sharing pension plan. Until a full 10‐ year trend is compiled, the schedule will only show those years under which GASB Statement No. 68 was applicable. The schedule presents the District’s proportion (percentage) of the collective net pension liability, the District’s proportionate share (amount) of the collective net pension liability, the District’s covered‐employee payroll, the District’s proportionate share (amount) of the collective net pension liability as a percentage of the employer’s covered‐employee payroll, and the pension plan’s fiduciary net position as a percentage of the total pension liability.

Schedule of District Contributions This 10‐year schedule is required by GASB Statement No. 68 for each cost‐sharing pension plan. Until a full 10‐ year trend is compiled, the schedule will only show those years under which GASB Statement No. 68 was applicable. The schedule presents the District’s statutorily or contractually required employer contribution, the amount of contributions recognized by the pension plan in relation to the statutorily or contractually required employer contribution, the difference between the statutorily or contractually required employer contribution and the amount of contributions recognized by the pension plan in relation to the statutorily or contractually required employer contribution, the District’s covered‐employee payroll, and the amount of contributions recognized by the pension plan in relation to the statutorily or contractually required employer contribution as a percentage of the District’s covered‐employee payroll.

62 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION, continued FOR THE YEAR ENDED JUNE 30, 2015

NOTE 2 – EXCESS OF EXPENDITURES OVER APPROPRIATIONS

For the year ended June 30, 2015, the District incurred no excess of expenditures over appropriations in individual major funds presented in the Budgetary Comparison Schedule by major object code.

Expenditures and Other Uses Budget Actual Excess General Fund Classified salaries$ 8,592,081 $ 8,639,826 $ 47,745 Services and other operating expenditures$ 9,188,321 $ 9,245,038 $ 56,717

SUPPLEMENTARY INFORMATION

ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2015

CFDA Pass‐Through Entity Federal Federal Grantor/Pass‐Through Grantor/Program or Cluster Number Identifying Number Expenditures U. S. DEPARTMENT OF EDUCATION: Passed through California Department of Education: Title I, Part A, Basic School Support 84.010 14416$ 95,517 Adult Education: Adult Secondary Education 84.002A 13978 50,334 Title II, Part A, Teacher Quality 84.367A 14341 55,354 Title III Cluster Title III, Limited English Proficient (LEP) Student Program 84.365 14346 12,686 Title III, Immigrant Education Program 84.365 15146 7,728 Subtotal Title III Cluster 20,414 Special Education Cluster IDEA Basic Local Assistance Entitlement, Part B, Sec 611 84.027 13379 836,188 IDEA Mental Health Allocation Plan, Part B, Sec 611 84.027 14468 58,813 Subtotal Special Educat ion Cluster 895,001 Vocational Programs: Voc & Appl Tech Secondary II C, Sec 131 (Carl Perkins Act) 84.048 14893 59,575 Total U. S. Department of Education 1,176,195

U. S. DEPARTMENT OF AGRICULTURE: Passed through California Department of Education: National School Lunch Program 10.555 13391 141,265 Total U. S. Department of Agriculture 141,265

Total Federal Expenditures $ 1,317,460

See accompanying note to supplementary information. 64 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF AVERAGE DAILY ATTENDANCE (ADA) FOR THE YEAR ENDED JUNE 30, 2015

Second Period Annual Report Report SCHOOL DISTRICT Ninth through Twelfth Regular ADA 5,144.88 5,133.24 Ext ended Year Special Educat ion 1.03 1.03 Special Educat ion ‐ Nonpublic Schools 28.83 26.26 Ext ended Year Special Educat ion ‐ Nonpublic Schools 2.28 2.28 Total Ninth through Twelfth 5,177.02 5,162.81 TOTAL SCHOOL DISTRICT 5,177.02 5,162.81

See accompanying note to supplementary information. 65 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF INSTRUCTIONAL TIME FOR THE YEAR ENDED JUNE 30, 2015

Minutes 2014‐15 Minutes Requirement Actual Number Grade Level Requirement Reduced Minutes of Days Status Grade 9 64,800 63,000 65,097 180 Complied Grade 10 64,800 63,000 65,097 180 Complied Grade 11 64,800 63,000 65,097 180 Complied Grade 12 64,800 63,000 65,097 180 Complied

See accompanying note to supplementary information. 66 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF FINANCIAL TRENDS AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2015

2016 (Budget) 2015 2014 2013 General Fund ‐ Budgetary Basis** Revenues And Other Financing Sources$ 66,768,358 $ 61,754,609 $ 59,284,752 $ 57,011,910 Expendit ur es And Other Financing Uses 65,217,472 63,031,495 60,980,351 56,684,907 Net change in Fund Balance$ 1,550,886 $ (1,276,886) $ (1,695,599) $ 327,003

Ending Fund Balance$ 10,860,622 $ 9,309,736 $ 10,586,622 $ 12,282,221

Available Reserves*$ 9,414,542 $ 3,774,113 $ 5,268,509 $ 3,751,426 Available Reserves As A Percentage Of Outgo 14.44% 5.99% 8.64% 6.62%

Long‐term Debt$ 262,275,925 $ 268,080,122 $ 211,164,730 $ 208,838,410 Average Daily Attendance At P‐25,268 5,177 5,098 5,141

The General Fund balance has decreased by $2,972,485 over the past two years. The fiscal year 2015‐16 budget projects an increase of $1,550,886. For a District this size, the State recommends available reserves of at least 3% of General Fund expenditures, transfers out, and other uses (total outgo).

The District has incurred operating deficits in two of the past three years and anticipates incurring an operating surplus during the 2015‐16 fiscal year. Total long term obligations have increased by $59,241,712 over the past two years.

Average daily attendance has increased by 36 ADA over the past two years. An increase of 91 ADA is anticipated during the 2015‐16 fiscal year.

*Available reserves consist of all unassigned fund balance within the General Fund.

On behalf payments of $1,461,251 are not included in the actual revenues and expenditures reported in this schedule.

See accompanying note to supplementary information. 67 ACALANES UNION HIGH SCHOOL DISTRICT SCHEDULE OF CHARTER SCHOOLS FOR THE YEAR ENDED JUNE 30, 2015

There were no charter schools within Acalanes Union High School District.

See accompanying note to supplementary information. 68 ACALANES UNION HIGH SCHOOL DISTRICT COMBINING BALANCE SHEET JUNE 30, 2015

Deferred Non‐Major Adult Education Maintenance Capital Facilities Governmental Fund Cafeteria Fund Fund Fund Funds ASSETS Cash and cash equivalents$ 192,790 $ 24,192 $ 1,175,977 $ 2,284,170 $ 3,677,129 Accounts receivable 25,352 58,395 ‐ 5,486 89,233 Total Assets $ 218,142 $ 82,587 $ 1,175,977 $ 2,289,656 $ 3,766,362

LIABILITIES Accrued liabilities$ 45,955 $ 35,112 $ 84,838 $ 23,358 $ 189,263 Unearned revenue 26,209 38,060 ‐ ‐ 64,269 Total Liabilities 72,164 73,172 84,838 23,358 253,532

FUND BALANCES Non‐spendable 1,500 5,000 ‐ ‐ 6,500 Restricted 708 4,415 ‐ 2,266,298 2,271,421 Committed 143,770 ‐ 1,091,139 ‐ 1,234,909 Total Fund Balances 145,978 9,415 1,091,139 2,266,298 3,512,830 Total Liabilities and Fund Balance $ 218,142 $ 82,587 $ 1,175,977 $ 2,289,656 $ 3,766,362

See accompanying note to supplementary information. 69 ACALANES UNION HIGH SCHOOL DISTRICT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2015

Deferred Non‐Major Adult Education Maintenance Capital Facilities Governmental Fund Cafeteria Fund Fund Fund Funds REVENUES LCFF sources$ 750,000 $ ‐ $ 220,000 $ ‐ $ 970,000 Federal sources 50,334 141,264 ‐ ‐ 191,598 Other state sources ‐ 8,494 ‐ ‐ 8,494 Other local sources 491,128 990,074 2,481 848,067 2,331,750 Total Revenues 1,291,462 1,139,832 222,481 848,067 3,501,842 EXPENDITURES Current Instruction 407,242 ‐ ‐ ‐ 407,242 Instruction‐related services School site administration 541,743 ‐ ‐ ‐ 541,743 Pupil services Food services ‐ 1,182,427 ‐ ‐ 1,182,427 General administration All other general administration 250,000 ‐ ‐ 80,286 330,286 Plant services ‐ ‐ 8,272 ‐ 8,272 Facilities acquisition and maintenance ‐ ‐ 381,216 96,920 478,136 Total Expenditures 1,198,985 1,182,427 389,488 177,206 2,948,106 Excess (Deficiency) of Revenues Over Expenditures 92,477 (42,595) (167,007) 670,861 553,736 Other Financing Sources (Uses) Transfers in ‐ 45,000 220,000 ‐ 265,000 Net Financing Sources (Uses) ‐ 45,000 220,000 ‐ 265,000 NET CHANGE IN FUND BALANCE 92,477 2,405 52,993 670,861 818,736 Fund Balance ‐ Beginning 53,501 7,010 1,038,146 1,595,437 2,694,094 Fund Balance ‐ Ending $ 145,978 $ 9,415 $ 1,091,139 $ 2,266,298 $ 3,512,830

See accompanying note to supplementary information. 70 ACALANES UNION HIGH SCHOOL DISTRICT NOTES TO SUPPLEMENTARY INFORMATION JUNE 30, 2015

NOTE 1 – PURPOSE OF SCHEDULES

Schedule of Expenditures of Federal Awards The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the United States Office of Management and Budget Circular A‐133, Audits of States, Local Governments, and Non‐Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

Schedule of Average Daily Attendance (ADA) Average daily attendance (ADA) is a measurement of the number of pupils attending classes of the District. The purpose of attendance accounting from a fiscal standpoint is to provide the basis on which apportionments of state funds are made to school districts. This schedule provides information regarding the attendance of students at various grade levels and in different programs.

Schedule of Instructional Time This schedule presents information on the amount of instructional time offered by the District and whether the District complied with the provisions of Education Code Sections 46200 through 46208. During the year ended June 30, 2015, the District participated in the Longer Day incentive funding program. As of June 30, 2015, the District had not yet met its target funding. Through 2014‐15, the instructional day and minute requirements have been reduced pursuant to Education Code Section 46201.2.

Schedule of Financial Trends and Analysis This schedule discloses the Districtʹs financial trends by displaying past yearsʹ data along with current year budget information. These financial trend disclosures are used to evaluate the Districtʹs ability to continue as a going concern for a reasonable period of time.

Reconciliation of Annual Financial and Budget Report with Audited Financial Statements This schedule provides the information necessary to reconcile the fund balance of all funds reported on the Annual Financial and Budget Report Unaudited Actuals to the audited financial statements.

Schedule of Charter Schools This schedule lists all Charter Schools chartered by the District, and displays information for each Charter School on whether or not the Charter School is included in the District audit.

Combining Statements – Non‐Major Funds These statements provide information on the District’s non‐major funds.

Local Education Agency Organization Structure This schedule provides information about the Districtʹs boundaries and schools operated, members of the governing board, and members of the administration. (Located in the front of the audit report)

OTHER INDEPENDENT AUDITORS’ REPORTS

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Christy White, CPA Independent Auditors’ Report Michael Ash, CPA Governing Board Heather Rubio Acalanes Union High School District Lafayette, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the SAN DIEGO financial statements of the governmental activities, each major fund, and the aggregate LOS ANGELES remaining fund information of Acalanes Union High School District, as of and for the year SAN FRANCISCO/BAY AREA ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Acalanes Union High School District’s basic financial statements, and have issued our report thereon dated December 15, 2015.

Corporate O ce: Internal Control over Financial Reporting 348 Olive Street San Diego, CA 92103 In planning and performing our audit of the financial statements, we considered Acalanes toll-free: 877.220.7229 Union High School District’s internal control over financial reporting (internal control) to tel: 619.270.8222 determine the audit procedures that are appropriate in the circumstances for the purpose of fax: 619.260.9085 www.christywhite.com expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Acalanes Union High School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Acalanes Union High School District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entityʹs financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Acalanes Union High School Districtʹs financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entityʹs internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entityʹs internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Diego, California December 15, 2015

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A‐ 133

Independent Auditors’ Report Christy White, CPA

Michael Ash, CPA Governing Board Acalanes Union High School District Heather Rubio Lafayette, California

Report on Compliance for Each Major Federal Program

We have audited Acalanes Union High School District’s compliance with the types of compliance requirements described in the OMB Circular A‐133 Compliance Supplement that SAN DIEGO could have a direct and material effect on each of Acalanes Union High School District’s LOS ANGELES major federal programs for the year ended June 30, 2015. Acalanes Union High School SAN FRANCISCO/BAY AREA Districtʹs major federal programs are identified in the summary of auditorʹs results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility Corporate O ce: 348 Olive Street San Diego, CA 92103 Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. toll-free: 877.220.7229 tel: 619.270.8222 Auditor’s Responsibility fax: 619.260.9085 www.christywhite.com Our responsibility is to express an opinion on compliance for each of Acalanes Union High School Districtʹs major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A‐133, Audits of States, Local Governments, and Non‐Profit Organizations. Those standards and OMB Circular A‐133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred.t An audi includes examining, on a test basis, evidence about Acalanes Union High School Districtʹs compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Acalanes Union High School Districtʹs compliance.

Opinion on Each Major Federal Program

In our opinion, Acalanes Union High School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015.

Report on Internal Control Over Compliance

Management of Acalanes Union High School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Acalanes Union High School District’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A‐133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Acalanes Union High School District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A‐133. Accordingly, this report is not suitable for any other purpose.

San Diego, California December 15, 2015

REPORT ON STATE COMPLIANCE

Independent Auditors’ Report

Governing Board Christy White, CPA Acalanes Union High School District Michael Ash, CPA Lafayette, California

Heather Rubio Report on State Compliance

We have audited Acalanes Union High School District’s compliance with the types of compliance requirements described in the 2014‐15 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, issued by the California Education Audit Appeals Panel that could have a direct and material effect on each of Acalanes Union High SAN DIEGO School District’s state programs for the fiscal year ended June 30, 2015, as identified below. LOS ANGELES SAN FRANCISCO/BAY AREA Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its state programs. Corporate O ce: 348 Olive Street San Diego, CA 92103 Auditor’s Responsibility

toll-free: 877.220.7229 Our responsibility is to express an opinion on compliance for each of Acalanes Union High tel: 619.270.8222 School Districtʹs state programs based on our audit of the types of compliance requirements fax: 619.260.9085 www.christywhite.com referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 2014‐15 Guide for Annual Audits of K‐12 Local Education Agencies and State Compliance Reporting, issued by the California Education Audit Appeals Panel as regulations. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the state programs noted below occurred. An audit includes examining, on a test basis, evidence about Acalanes Union High School Districtʹs compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance with the requirements referred to above., However our audit does not provide a legal determination of Acalanes Union High School Districtʹs compliance with those requirements.

We believe that our audit provides a reasonable basis for our opinion on compliance with the requirements referred to above. However, our audit does not provide a legal determination of Acalanes Union High School Districtʹs compliance with those requirements.

Opinion on State Compliance

In our opinion, Acalanes Union High School District complied, in all material respects, with the types of compliance requirements referred to above that are applicable to the state programs noted in the table below for the year ended June 30, 2015.

Other Matters

The results of our auditing procedures disclosed instances of noncompliance, which are described in the accompanying schedule of findings and questioned costs as items #2015‐1. Our opinion on state compliance is not modified with respect to these matters.

Acalanes Union High School District’s response to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs and corrective action plan. Acalanes Union High School District’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Procedures Performed

In connection with the audit referred to above, we selected and tested transactions and records to determine Acalanes Union High School Districtʹs compliance with the state laws and regulations applicable to the following items:

PROCEDURES PROGRAM NAME PERFORMED Attendance Yes Teacher Certification and Misassignments Yes Kindergarten Continuance Not Applicable Independent Study No , See Below Continuation Educat ion Not Applicable Instructional Time for school districts Yes Instructional Materials, general requirements Yes Ratios of Administrative Employees to Teachers Yes Classroom Teacher Salaries Yes Ear ly Retirement Incentive Not Applicable Gann Limit Calculation Yes School Accountability Report Card Yes Juvenile Court Schools Not Applicable Middle or Ear ly College High Schools Not Applicable K‐3 Grade Span Adjustment Not Applicable Transportation Maintenance of Effor t Yes Regional Occupation Centers or Programs Maintenance of Effort Yes Adult Educat ion Maintenance of Effort Yes California Clean Ener gy Jobs Act Yes

PROCEDURES PROGRAM NAME PERFORMED After School Education and Safety Program Not Applicable Proper Expendit ur e of Educat ion Protection Account Funds Yes Common Core Implementation Funds Yes Unduplicated Local Control Funding Formula Pupil Counts Yes Local Control and Accountability Plan Yes Attendance; for charter schools Not Applicable Mode of Instruction; for charter schools Not Applicable Nonclassroom‐Based Instruction/Independent Study; for charter schools Not Applicable Determination of Funding for Nonclassroom‐Based Instruction; for charter schools Not Applicable Annual Instructional Minutes – Classroom Based; for charter schools Not Applicable Charter School Facility Grant Program Not Applicable

We did not perform testing for independent study because ADA was below materiality thresholds.

San Diego, California December 15, 2015

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

ACALANES UNION HIGH SCHOOL DISTRICT SUMMARY OF AUDITORS’ RESULTS FOR THE YEAR ENDED JUNE 30, 2015

FINANCIAL STATEMENTS Type of auditorsʹ report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? No Significant deficiency(ies) identified? None Reported Non‐compliance material to financial statements noted? No

FEDERAL AWARDS Internal control over major program: Material weakness(es) identified? No Significant deficiency(ies) identified? None Reported Type of auditorsʹ report issued: Unmodified Any audit findings disclosed that are required to be reported in accordance with section .510(a) of OMB Circular A‐133? No Identification of major programs:

CFDA Number(s) Name of Federal Program of Cluster 84.027 Special Educat ion Cluster Dollar threshold used to distinguish between Type A and Type B programs:$ 300,000 Auditee qualified as low‐risk auditee? Yes

STATE AWARDS Internal control over state programs: Material weaknesses identified? No Significant deficiency(ies) identified? Yes Type of auditorsʹ report issued on compliance for state programs: Unmodified

79 ACALANES UNION HIGH SCHOOL DISTRICT FINANCIAL STATEMENT FINDINGS FOR THE YEAR ENDED JUNE 30, 2015

FIVE DIGIT CODE AB 3627 FINDING TYPE 20000 Inventory of Equipment 30000 Internal Control

There were no financial statement findings or questioned costs or the year ended June 30, 2015.

80 ACALANES UNION HIGH SCHOOL DISTRICT FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2015

FIVE DIGIT CODE AB 3627 FINDING TYPE 50000 Federal Compliance

There were no Federal Award Findings or questioned costs or the year ended June 30, 2015.

81 ACALANES UNION HIGH SCHOOL DISTRICT STATE AWARD FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2015

FIVE DIGIT CODE AB 3627 FINDING TYPE 10000 Attendance 40000 State Compliance 42000 Charter School Facilities Programs 60000 Miscellaneous 61000 Classroom Teacher Salaries 62000 Local Control Accountability Plan 70000 Instructional Materials 71000 Teacher Misassignments 72000 School Accountability Report Card

FINDING#2015‐1: TEACHER CERTIFICATION AND MISASSIGNMENTS (71000)

Criteria: Any person rendering service as a teacher in kindergarten or grades 1 to 12, inclusive, must have a valid certification document per Education Code § 45037.

Condition: During our testing, we identified one teacher operating on expired certification documents.

Cause: Based on the HR documents provided, the credentials expired on 07/01/2014 due to the move to the new system.

Effect: One teacher was operating on expired certification documents.

Questioned Cost: The District obtained an approval of service rendered without a valid credential from the state of California, thus there are no loss of teaching days resulting in questioned costs.

Context: Of the 10 teachers selected for testing we identified one operating under expired certification documents.

Recommendation: We recommend the District work with the County Office of Education to ensure that all teachers have current certification documents and verify that all teachers are renewing their certifications as necessary.

District Response: This process has been fixed now as far as getting teachers credentials updated before they expire. HR went back and submitted to CTC and got the retro‐approval in May 2015.

82 ACALANES UNION HIGH SCHOOL DISTRICT STATE AWARD FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2015 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30, 2015

There were no audit findings for the year ended June 30, 2014.

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APPENDIX C

FORM OF CONTINUING DISCLOSURE CERTIFICATE

The Acalanes Union High School District will execute a Continuing Disclosure Certificate in substantially the following form in connection with the issuance of the $13,676,446.85 Acalanes Union High School District (Contra Costa County, California) Election of 2008 General Obligation Bonds, Series 2016C.

This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the Acalanes Union High School District (the “District”) in connection with the issuance of $13,676,446.85 of the District’s Election of 2008 General Obligation Bonds, Series 2016C (the “Bonds”). The Bonds are being issued pursuant to a Resolution of the District dated April 20, 2016. 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 Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5).

SECTION 2. Definitions. In addition to the definitions set forth in the 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” shall mean any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.

“Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.

“Dissemination Agent” shall mean initially Keygent LLC, or any successor Dissemination Agent designated in writing by the District (which may be the District) and which has filed with the District a written acceptance of such designation.

“Holder” shall mean the registered owner of the Bonds.

“Listed Events” shall mean any of the events listed in Section 5(a) or Section 5(b) of this Disclosure Certificate.

“Official Statement” shall mean the Official Statement, dated as of April 28, 2016, relating to the offer and sale of the Bonds.

“Participating Underwriter” shall mean RBC Capital Markets, LLC, or any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds.

C-1

“Repository” shall mean, the Municipal Securities Rulemaking Board, which can be found at http://emma.msrb.org/, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future.

“Rule” shall mean 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.

“State” shall mean the State of California.

“State Repository” shall mean any public or private repository or entity designated by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Certificate, there is no State Repository.

SECTION 3. Provision of Annual Reports.

(a) The District shall, or shall cause the Dissemination Agent to, not later than nine months after the end of the District’s fiscal year (presently ending June 30), commencing with the report for the 2015-16 Fiscal Year, provide to the Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the District may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are 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(b).

(b) Not later than thirty (30) days (nor more than sixty (60) days) prior to said date the Dissemination Agent shall give notice to the District that the Annual Report shall be required to be filed in accordance with the terms of this Disclosure Certificate. Not later than fifteen (15) Business Days prior to said date, the District shall provide the Annual Report in a format suitable for reporting to the Repository to the Dissemination Agent (if other than the District). If the District is unable to provide to the Repository an Annual Report by the date required in subsection (a), the District shall send a notice in a timely manner to the Repository in substantially the form attached as Exhibit A with a copy to the Dissemination Agent. The Dissemination Agent shall not be required to file a Notice to Repository of Failure to File an Annual Report.

(c) The Dissemination Agent shall file a report with the District stating it has filed the Annual Report in accordance with its obligations hereunder, stating the date it was provided to the Repository.

SECTION 4. Content and Form of Annual Reports. (a) The District’s Annual Report shall contain or include by reference the following:

1. The audited financial statements of the District for the prior fiscal year, 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 time the Annual Report is required to be filed pursuant to Section 3(a), 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.

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2. Material financial information and operating data with respect to the District of the type included in the Official Statement in the following categories (to the extent not included in the District’s audited financial statements):

(a) State funding received by the District for the last completed fiscal year;

(b) Average daily attendance of the District for the last completed fiscal year;

(d) Adopted budget of the District for the current fiscal year, or a summary thereof;

(e) Information regarding total assessed valuation of taxable properties within the District, if and to the extent provided to the District by the County and;

(f) Information regarding total secured tax charges and delinquencies on taxable properties within the District, if and to the extent provided to the District by the County.

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 have been submitted to the Repository or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The District shall clearly identify each such other document so included by reference.

(b) The Annual Report shall be filed in an electronic format, and accompanied by identifying information, prescribed by the Municipal Securities Rulemaking Board.

SECTION 5. Reporting of Significant Events.

(a) Pursuant to the provisions of this Section 5(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 in a timely manner not in excess of 10 business days after the occurrence of the event:

1. principal and interest payment delinquencies.

2. tender offers.

3. defeasances.

4. rating changes.

5. adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, or Notices of Proposed Issue (IRS Form 5701-TEB).

6. unscheduled draws on the debt service reserves reflecting financial difficulties.

7. unscheduled draws on credit enhancement reflecting financial difficulties.

8. substitution of the credit or liquidity providers or their failure to perform.

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9. bankruptcy, insolvency, receivership or similar event (within the meaning of the Rule) of the District. For the purposes of the event identified in this Section 5(a)(9), the event 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 U.S. 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 governmental 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.

(b) Pursuant to the provisions of this Section 5(b), the District shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material:

1. non-payment related defaults.

2. modifications to rights of Bondholders.

3. Bond calls.

4. unless described under Section 5(a)(5) above, material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds.

5. release, substitution or sale of property securing repayment of the Bonds.

6. 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.

7. appointment of a successor or additional trustee or paying agent with respect to the Bonds or the change of name of such a trustee or paying agent.

(c) Whenever the District obtains knowledge of the occurrence of a Listed Event under Section 5(b) hereof, the District shall as soon as possible determine if such event would be material under applicable federal securities laws.

(d) If the District determines that knowledge of the occurrence of a Listed Event under Section 5(b) hereof would be material under applicable federal securities laws, the District shall (i) file a notice of such occurrence with the Repository in a timely manner not in excess of 10 business days after the occurrence of the event or (ii) provide notice of such reportable event to the Dissemination Agent in format suitable for filing with the Repository in a timely manner not in excess of 10 business days after the occurrence of the event. The Dissemination Agent shall have no duty to independently prepare or file any report of Listed Events. The Dissemination Agent may conclusively rely on the District’s determination of materiality pursuant to Section 5(c).

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SECTION 6. 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(a) or Section 5(b), as applicable.

SECTION 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent (or substitute 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. The Dissemination Agent may resign upon fifteen (15) days written notice to the District. Upon such resignation, the District shall act as its own Dissemination Agent until it appoints a successor. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the District pursuant to this Disclosure Certificate and shall not be responsible to verify the accuracy, completeness or materiality of any continuing disclosure information provided by the District. The District shall compensate the Dissemination Agent for its fees and expenses hereunder as agreed by the parties. Any entity succeeding to all or substantially all of the Dissemination Agent’s corporate trust business shall be the successor Dissemination Agent without the execution or filing of any paper or further act.

SECTION 8. 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, 5(a) or 5(b), 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 the type of business conducted;

(b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances;

(c) The amendment or waiver does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds; and

(d) No duties of the Dissemination Agent hereunder shall be amended without its written consent thereto.

In the event of any amendment or waiver of a provision of this Disclosure Certificate, the District shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the District. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 5(b), and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

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SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent 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 Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

SECTION 10. 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 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 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate. The Dissemination Agent acts hereunder solely for the benefit of the District; this Disclosure Certificate shall confer no duties on the Dissemination Agent to the Participating Underwriter, the Holders and the Beneficial Owners. 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 attorney’s fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s gross 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. The Dissemination Agent shall have no liability for the failure to report any event or any financial information as to which the District has not provided an information report in format suitable for filing with the Repository. The Dissemination Agent shall not be required to monitor or enforce the District’s duty to comply with its continuing disclosure requirements hereunder.

SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Dissemination Agent, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Dated: May 25, 2016 ACALANES UNION HIGH SCHOOL DISTRICT

By: Chief Business Official

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EXHIBIT A

NOTICE TO REPOSITORY OF FAILURE TO FILE ANNUAL REPORT

Name of District: ACALANES UNION HIGH SCHOOL DISTRICT

Name of Bond Issue: Election of 2008 General Obligation Bonds, Series 2016C

Date of Issuance: May 25, 2016

NOTICE IS HEREBY GIVEN that the District has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Certificate relating to the Bonds. The District anticipates that the Annual Report will be filed by ______.

Dated:______

ACALANES UNION HIGH SCHOOL DISTRICT

By [form only; no signature required]

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APPENDIX D

GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE DISTRICT AND CONTRA COSTA COUNTY

The following information regarding economic activity within the various cities served by the District and the County in which the District is located is provided as background information only, to describe the general economic health of the region. However, the District encompasses a relatively small area within the County and the property tax required to be levied by the County to repay the Bonds will be levied only on property located in the District.

General

The District serves the Cities of Lafayette and Orinda, the Town of Moraga, approximately one-third of the City of Walnut Creek and certain surrounding unincorporated areas in Contra Costa County.

Situated northeast of San Francisco, Contra Costa County is bordered by the San Francisco Bay to the west, the San Pablo Bay and the Sacramento River delta to the north and by Alameda County to the south. Ranges of hills effectively divide Contra Costa County into three distinct regions. The western portion, with its access to water, contains much of Contra Costa’s heavy industry. The central section is rapidly developing from a suburban area into a major commercial and financial headquarters center. The eastern part is also undergoing substantial change, from a rural, agricultural area to a suburban region. Contra Costa County has extensive and varied transportation facilities - ports accessible to ocean-going vessels, railroads, freeways and rapid transit lines connecting the area with Alameda County and San Francisco.

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Population

The following table shows population figures for the Cities, the Town and the County from 2001 through 2015.

POPULATION ESTIMATES

Lafayette, Moraga, Orinda, Walnut Creek and Contra Costa County 2001 through 2015

City of Town of City of City of County of Year(1) Lafayette Moraga Orinda Walnut Creek Contra Costa 2001 24,048 16,399 17,719 65,231 962,076 2002 24,233 16,387 17,723 65,199 974,657 2003 24,150 16,345 17,679 65,002 984,256 2004 24,072 16,287 17,637 65,092 993,958 2005 23,857 16,133 17,514 64,705 1,001,216 2006 23,539 15,911 17,283 63,681 1,007,169 2007 23,472 15,842 17,240 63,302 1,015,672 2008 23,567 15,863 17,341 63,339 1,027,264 2009 23,696 15,929 17,484 63,786 1,038,390 2010(2) 23,893 16,016 17,643 64,173 1,049,025 2011 24,023 16,075 17,712 64,710 1,056,306 2012 24,093 16,112 17,769 65,071 1,062,746 2013 24,289 16,223 17,906 65,652 1,074,317 2014 24,690 16,363 18,109 66,319 1,089,219 2015 25,154 16,466 18,612 66,868 1,102,871

(1) As of January 1, unless otherwise indicated. (2) April 1 data. Source: State of California, Department of Finance, E-4 Population estimates for Cities, Counties, and the State, 2011-2015, with 2010 Benchmark.

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Personal Income

The following table shows per capita personal income for the County, the State and the United States from 2003 through 2014.

PER CAPITA PERSONAL INCOME(1) Contra Costa County, California and United States 2003 through 2014

Contra Costa State of Year County California United States 2003 $46,955 $35,381 $32,692 2004 50,297 37,244 34,316 2005 52,591 39,046 35,904 2006 55,891 41,693 38,144 2007 57,146 43,182 39,821 2008 57,404 43,786 41,082 2009 53,279 41,588 39,376 2010 53,293 42,411 40,277 2011 56,919 44,852 42,453 2012 61,290 47,614 44,266 2013 60,885 48,125 44,438 2014 63,752 49,985 46,049

(1) Per capita personal income is the total personal income divided by the total mid-year population estimates of the U.S. Bureau of the Census. All dollar estimates are in current dollars (not adjusted for inflation). Source: U.S. Department of Commerce, Bureau of Economic Analysis.

Largest Employers

The following table lists the largest employers in the County.

PRINCIPAL EMPLOYERS Contra Costa County For Fiscal Year Ended June 30, 2015

Estimated Percentage of Total Employer Name Employees County Employment Chevron Corporation 10,000+ 1.92% Bayer Healthcare Pharmaceuticals 500-999 0.14 Bio-Rad Laboratories 500-999 0.14 C&H Sugar Co., Inc. 500-999 0.14 Conoco Phillips Rodeo Refinery 500-999 0.14 Macy’s 500-999 0.14 Nordstrom 500-999 0.14 Safeway 500-999 0.14 Shell Oil Products 500-999 0.14 Tesoro Golden Eagle Refinery 500-999 0.14

Source: Contra Costa County, California Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2015.

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Employment

The following tables summarize the average annual industry employment in the Cities, the Town, the County and the State from 2010 through 2014.

CIVILIAN LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT Lafayette, Moraga, Orinda, Walnut Creek, Contra Costa County and California 2010 through 2014(1)

Unemployment Year Area Labor Force Employment(2) Unemployment Rate (%)(3) 2010 City of Lafayette 12,500 12,000 500 4.1 Town of Moraga 7,600 7,100 500 6.7 City of Orinda 8,600 8,200 400 4.3 City of Walnut Creek 34,000 31,400 2,600 7.6 Contra Costa County 524,200 465,900 58,300 11.1 State of California 18,336,300 16,068,400 2,267,900 12.4

2011 City of Lafayette 12,700 12,200 500 3.8 Town of Moraga 7,700 7,200 500 6.2 City of Orinda 8,700 8,400 300 4.0 City of Walnut Creek 34,400 32,000 2,400 7.0 Contra Costa County 529,200 474,300 54,800 10.4 State of California 18,417,900 16,249,600 2,168,300 11.8

2012 City of Lafayette 12,900 12,500 400 3.2 Town of Moraga 7,900 7,400 400 5.3 City of Orinda 8,900 8,600 300 3.4 City of Walnut Creek 35,000 32,900 2,100 6.0 Contra Costa County 535,700 487,800 48,000 9.0 State of California 18,519,000 16,589,700 1,929,300 10.4

2013 City of Lafayette 13,200 12,800 300 2.6 Town of Moraga 8,000 7,600 300 4.4 City of Orinda 9,100 8,800 300 2.8 City of Walnut Creek 35,400 33,700 1,800 5.0 Contra Costa County 538,900 499,100 39,800 7.4 State of California 18,596,800 16,933,300 1,663,500 8.9

2014 City of Lafayette 11,900 11,500 400 3.4 Town of Moraga(4) ------City of Orinda 8,600 8,400 300 3.0 City of Walnut Creek 33,100 31,700 1,400 4.2 Contra Costa County 544,900 511,400 33,500 6.1 State of California 18,811,400 17,397,100 1,414,300 7.5

Note: Data is not seasonally adjusted. (1) Annual averages, unless otherwise specified. (2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table. (4) 2014 data for the Town of Moraga is not yet available. Source: U.S. Department of Labor – Bureau of Labor Statistics, California Employment Development Department. March 2014 Benchmark.

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Industry

The following tables summarize the average annual industry employment in the County from 2009 through 2014.

LABOR FORCE AND INDUSTRY EMPLOYMENT ANNUAL AVERAGES Contra Costa County 2009 through 2014

Type of Employment 2009 2010 2011 2012 2013 2014 Farm 800 700 800 800 800 800 Mining, Logging & Construction 21,200 18,300 17,800 19,600 21,700 21,900 Manufacturing 18,800 18,500 17,600 17,600 15,400 15,500 Trade, Transportation & Utilities 57,300 55,900 56,500 57,400 58,700 60,300 Wholesale Trade 7,700 7,600 7,900 8,200 8,700 9,100 Retail Trade 41,200 40,400 40,500 41,200 41,100 41,700 Information 10,400 9,600 9,000 8,400 8,600 8,400 Financial Activities 25,700 25,300 24,800 25,300 25,300 25,000 Professional & Business Services 45,900 43,800 45,900 48,100 52,100 53,900 Educational & Health Services 52,900 53,000 53,500 55,700 59,100 60,800 Leisure & Hospitality 31,200 31,300 32,300 33,500 35,400 36,500 Other Services 11,700 11,800 12,400 12,400 12,100 12,500 Government 51,300 49,200 47,800 47,900 48,200 49,100 Total All Industries 327,100 317,400 318,300 326,900 337,400 344,700

Note: Items may not add to total due to independent rounding. Source: California Employment Development Department, Labor Market Information Division. March 2014 Benchmark.

Commercial Activity

Summaries of annual taxable sales for the Cities, the Town and the County are shown in the following tables from 2008 through 2013.

TAXABLE SALES Lafayette 2008 through 2013(1)

Retail Retail Taxable Total Outlets Year Permits Transactions Total Permits Taxable Transactions 2008 458 $185,231 975 $229,353 2009 568 161,721 898 199,613 2010 580 168,281 906 203,198 2011 563 189,508 890 224,851 2012 585 198,025 902 233,750 2013 617 204,100 943 244,503

(1) 2014 and 2015 data is currently unavailable. Note: In 2009, retail permits expanded to include permits for food services. Source: “Taxable Sales in California (Sales & Use Tax),” California State Board of Equalization.

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TAXABLE SALES Moraga 2008 through 2013(1)

Retail Retail Taxable Total Outlets Year Permits Transactions Total Permits Taxable Transactions 2008 175 $71,029 381 $78,865 2009 231 69,248 341 76,004 2010 246 72,537 346 78,752 2011 221 78,327 323 86,329 2012 231 78,942 340 89,214 2013 219 81,136 319 90,353

TAXABLE SALES Orinda 2008 through 2013(1)

Retail Retail Taxable Total Outlets Year Permits Transactions Total Permits Taxable Transactions 2008 244 $72,687 548 $96,626 2009 336 66,761 531 85,221 2010 327 65,502 514 76,778 2011 322 70,959 495 81,566 2012 321 71,009 501 85,606 2013 307 70,759 476 85,373

TAXABLE SALES Walnut Creek 2008 through 2013(1)

Retail Retail Taxable Total Outlets Year Permits Transactions Total Permits Taxable Transactions 2008 1,249 $1,361,264 2,407 $1,619,604 2009 1,459 1,231,789 2,250 1,467,152 2010 1,521 1,271,526 2,308 1,508,815 2011 1,507 1,369,007 2,289 1,606,995 2012 1,565 1,514,640 2,361 1,762,807 2013 1,572 1,587,670 2,340 1,850,153

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TAXABLE SALES Contra Costa County 2008 through 2013(1)

Retail Retail Taxable Total Outlets Year Permits Transactions Total Permits Taxable Transactions 2008 11,577 $9,484,307 23,149 $13,307,681 2009 14,045 8,473,578 21,395 11,883,049 2010 14,423 8,716,393 21,784 11,953,846 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

(1) 2014 data is currently unavailable. Note: In 2009, retail permits expanded to include permits for food services. Source: “Taxable Sales in California (Sales & Use Tax),” California State Board of Equalization.

Building Activity

In addition to annual building permit valuations, the numbers of permits for new dwelling units issued each year from 2009 through 2014 are shown in the following tables for the Cities, the Town and the County.

BUILDING PERMITS AND VALUATIONS Lafayette 2009 through 2014 (Dollars in Thousands) 2009 2010 2011 2012 2013 2014 Valuation ($000’s) Residential $21,673 $26,879 $21,634 $31,754 $54,502 $40,883 Non-Residential 6,073 6,994 5,938 7,629 8,111 9,529 Total $27,746 $33,873 $27,572 $39,383 $62,613 $50,412

Units Single Family 17 11 7 12 16 12 Multiple Family 0 0 2 46 108 40 Total 17 11 9 58 124 52

Note: Totals may not add to sum due to rounding. Source: Construction Industry Research Board.

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BUILDING PERMITS AND VALUATIONS Moraga 2009 through 2014 (Dollars in Thousands)

2009 2010 2011 2012 2013 2014 Valuation ($000’s) Residential $9,138 $8,000 $8,695 $6,051 $6,519 $8,227 Non-Residential 7,510 3,839 1,813 2,342 10,988 2,576 Total $16,648 $11,839 $10,508 $8,393 $17,507 $10,803

Units Single Family 2 3 2 0 0 1 Multiple Family 0 0 0 0 0 0 Total 2 3 2 0 0 1

Note: Totals may not add to sum due to rounding. Source: Construction Industry Research Board.

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BUILDING PERMITS AND VALUATIONS Orinda 2009 through 2014 (Dollars in Thousands)

2009 2010 2011 2012 2013 2014 Valuation ($000’s) Residential $14,833 $21,471 $18,248 $17,450 $50,299 $39,175 Non-Residential 2,649 3,585 5,187 7,211 6,476 5,814 Total $17,482 $25,056 $23,435 $24,661 $56,775 $44,989

Units Single Family 7 12 5 4 57 52 Multiple Family 0 0 0 0 66 0 Total 7 12 5 4 123 52

Note: Totals may not add to sum due to rounding. Source: Construction Industry Research Board.

BUILDING PERMITS AND VALUATIONS Walnut Creek 2009 through 2014 (Dollars in Thousands)

2009 2010 2011 2012 2013 2014 Valuation ($000’s) Residential $19,957 $17,316 $274,059 $45,249 $46,300 $80,615 Non-Residential 54,911 35,906 52,120 20,265 29,408 127,131 Total $74,868 $53,222 $326,179 $65,514 $75,708 $207,746

Units Single Family 3 3 6 19 33 14 Multiple Family 6 0 52 317 125 197 Total 9 3 58 336 158 211

Note: Totals may not add to sum due to rounding. Source: Construction Industry Research Board.

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BUILDING PERMITS AND VALUATIONS Contra Costa County 2009 through 2014 (Dollars in Thousands)

2009 2010 2011 2012 2013 2014 Valuation ($000’s) Residential $493,973 $553,058 $457,479 $574,612 $727,964 $740,735 Non-Residential 314,526 285,417 289,320 214,602 394,087 410,537 Total $808,499 $838,475 $746,799 $789,214 $1,122,051 $1,151,272

Units Single Family 998 809 718 1,188 1,585 1,439 Multiple Family 155 890 355 949 370 588 Total 1,153 1,699 1,073 2,137 1,955 2,027

Note: Totals may not add to sum due to rounding. Source: Construction Industry Research Board.

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APPENDIX E

CONTRA COSTA COUNTY INVESTMENT POOL

The following information concerning the Contra Costa County Investment Pool (the “Investment Pool”) has been provided by the Treasurer-Tax Collector (the “Treasurer”) of Contra Costa County (the “County”), and has not been confirmed or verified by the District, the Financial Advisor or the Underwriter. The District, the Financial Advisor and the Underwriter have not made an independent investigation of the investments in the Investment Pool and have made no assessment of the current County investment policy. The value of the various investments in the Investment Pool will fluctuate on a daily basis as a result of a multitude of factors, including generally prevailing interest rates and other economic conditions. Additionally, the Treasurer, with the consent of the County Board of Supervisors, may change the County investment policy at any time. Therefore, there can be no assurance that the values of the various investments in the Investment Pool will not vary significantly from the values described herein. Finally, none of the District, the Financial Advisor or the Underwriter make any representation as to the accuracy or adequacy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof, or that the information contained or incorporated hereby by reference is correct as of any time subsequent to its date. Additional information regarding the Investment Pool may be obtained from the Treasurer at http://www.mercedtaxcollector.org/; however, the information presented on such website is not incorporated herein by any reference.

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[THIS PAGE INTENTIONALLY LEFT BLANK] CONTRA COSTA COUNTY

TREASURER’S QUARTERLY INVESTMENT REPORT

AS OF DECEMBER 31, 2015 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 11

3. Market Valuation Sources 36

B. Investment Portfolio Detail – Managed by Outside Contracted Parties

1. State of California Local Agency Investment Fund a. Summary 37

2. Asset Management Funds a. Wells Capital Management 38 b. CalTRUST 73

3. East Bay Regional Communications System Authority (EBRCS) a. Summary 78 Page 1

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 12/31/15, the fair value of the Treasurer’s investment portfolio was 99.95% of the cost. More than 80 percent of the portfolio or over $2.59 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 $3,223,855,273.60

Cost $3,224,114,720.65

Market Value $3,222,613,057.91

Weighted Yield to Maturity 0.64%

Weighted Average Days to Maturity 228 days

Weighted Duration 0.62 year Page 2

CONTRA COSTA COUNTY INVESTMENT POOL As of December 31, 2015

PERCENT OF TYPE PAR VALUE COST FAIR VALUE TOTAL COST A. Investments Managed by Treasurer's Office 1. U.S. Treasuries (STRIPS, Bills, Notes) $37,620,000.00 $37,709,584.04 $37,498,251.55 1.17%

2. U.S. Agencies Federal Home Loan Banks 235,002,000.00 235,686,775.32 234,766,456.59 7.31% Federal National Mortgage Association 92,526,000.00 93,165,884.29 92,780,150.98 2.89% Federal Farm Credit Banks 174,036,000.00 173,967,580.30 173,686,024.99 5.40% Federal Home Loan Mortgage Corporation 116,709,000.00 116,860,276.40 116,442,826.83 3.62% Municipal Bonds 5,555,000.00 5,784,587.02 1 5,784,587.02 1 0.18% Subtotal 623,828,000.00 625,465,103.33 623,460,046.41 19.40%

3. Money Market Instruments Commercial Paper 955,477,000.00 953,197,334.12 953,986,318.53 29.56% Negotiable Certificates of Deposit 794,998,000.00 794,994,780.00 795,613,065.63 24.66% Medium Term Certificates of Deposit 4,200,000.00 4,200,000.00 4,189,290.00 0.13% Money Market Accounts 565,318.32 565,318.32 565,318.32 0.02% Time Deposit 3,335.77 3,335.77 3,335.77 0.00% Subtotal 1,755,243,654.09 1,752,960,768.21 1,754,357,328.25 54.37%

4. Asset Backed Securities/Mortgage Backed Securities 4,562,799.15 4,571,755.84 4,571,755.84 0.14%

5. Corporate Notes 149,457,000.00 150,021,616.02 149,626,439.26 4.65%

TOTAL (Section A.) 2,570,711,453.24 2,570,728,827.44 2,569,513,821.31 79.73%

B. Investments Managed by Outside Contractors

1. Local Agency Investment Fund 209,721,646.14 209,721,646.14 209,551,134.68 2 6.50%

2. Other a. EBRCS Bond 2,232,756.90 2,232,756.90 2,232,756.90 0.07% b. Wells Capital Management 44,255,885.01 44,497,957.86 44,381,812.71 3 1.38% c. CalTRUST (Short-Term Fund) 148,462,420.81 148,462,420.81 148,462,420.81 4.60% Subtotal 194,951,062.72 195,193,135.57 195,076,990.42 6.05%

TOTAL (Section B.) 404,672,708.86 404,914,781.71 404,628,125.10 12.56%

C. Cash 248,471,111.50 248,471,111.50 248,471,111.50 7.71%

4 GRAND TOTAL (FOR A , B, & C) $3,223,855,273.60 $3,224,114,720.65 $3,222,613,057.91 100.00%

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 Page 3 CONTRA COSTA COUNTY INVESTMENT POOL AT A GLANCE AS OF DECEMBER 31, 2015

PORTFOLIO BREAKDOWN PORTFOLIO CREDIT QUALITY BY INVESTMENT NR (CASH) NR (Misc.) BBB+ AAA 7.71% 0.31% 0.02% 0.46%

Money Market AA+ 54.37% 22.09%

ABS/MBS 0.14% AA A‐1 11.99% 44.11% Corporate U.S.Agencies- Notes Federal, State 4.65% A‐1+ and Local U.S. Treasuries Cash Outside 9.86% AA‐ 19.40% 1.17% 7.71% Contractors-Other Outside 1.44% 6.05% Contractors-LAIF 6.50% A+ 0.96% A‐ A 0.32% 0.73%

MATURITY DISTRIBUTION YIELD TO MATURITY BY PORTFOLIO 0.90% 0.817% $3,000,000,000 0.80% 80.37% 0.696% $2,500,000,000 0.70% 0.644% 0.60% 0.560% $2,000,000,000 0.50% $1,500,000,000 0.40% 0.380% 0.350%

$1,000,000,000 0.30% 0.20% $500,000,000 9.23% 8.50% 1.76% 0.13% 0.10% $0 1 yr & less 1 to 2 yrs 2 to 3 yrs 3 to 4 yrs 4+ yrs 0.00% Total Treasurer LAIF Wells CalTRUST Cash

Note: Total is 100% of the portfolio; Treasurer‐80%; LAIF‐6%; Wells Cap‐1%; CalTRUST‐5% and Cash‐8%

QUARTERLY WEIGHTED YIELD TO MATURITY POOL BALANCE BY PARTICIPANTS Voluntary 0.70% Participants 6.81% 0.60% Community College Dist. 0.50% 12.21% County&Agencies 0.40% 40.99%

0.30%

0.20% School Dist. 39.99% 0.10%

0.00% 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15

Note: More than 44% of the School Dist. funds from the bond proceeds YTM

NOTES TO INVESTMENT PORTFOLIO SUMMARY AND AT A GLANCE AS OF DECEMBER 31, 2015

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 80% of the portfolio will mature in less than a year with a weighted average maturity of 228 days. Page 4 MAJOR MARKET AND ECONOMIC DATA

AS OF DECEMBER 31, 2015

TREASURY YIELDS AND FED TARGET RATE CONSUMER PRICE INDEX 7 6

6 5

4 5

3 4 2

Percentage 3 Percentage 1

2 0

1 ‐1

‐2 0 Dec‐97 Dec‐99 Dec‐01 Dec‐03 Dec‐05 Dec‐07 Dec‐09 Dec‐11 Dec‐13 Dec‐15 12/96 12/99 12/02 12/05 12/08 12/11 12/14 US 2‐YR TREASURY YIELD US 5‐YR TREASURY YIELD FEDERAL FUND TARGET RATE CPI YoY Change Core CPI YoY Change

GROSS DOMESTIC PRODUCT EMPLOYMENT RELATED RATES 10 20

8 18

6 16

4 14

2 12

0 10 Percentage

Percentage ‐2 8

‐4 6

‐6 4

‐8 2

‐10 0 12/31/97 12/31/00 12/31/03 12/31/06 12/31/09 12/31/12 12/31/15 Dec‐96 Dec‐98 Dec‐00 Dec‐02 Dec‐04 Dec‐06 Dec‐08 Dec‐10 Dec‐12 Dec‐14 GDP QoQ Change Unemployment Rate Underemployment Rate

Note: All data provided by Bloomberg SECTION III

APPENDIX

A. INVESTMENT PORTFOLIO DETAIL - MANAGED BY TREASURER’S OFFICE Inventory by Market Value Page 5 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 10:00:56 AM Reporting Currency: Local Contra Costa County 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

Inv Type: 12 TREASURY NOTES

Subtotal 1.075011 37,620,000.00 37,498,251.55 91,938.20 5,223.23 1.014707 37,709,584.04 99.676373 -197,133.94

Inv Type: 22 FEDERAL HOME LOAN BANKS

Subtotal 1.027898 234,005,000.00 233,769,618.60 366,300.75 75,160.82 .893674 234,692,698.75 99.899412 -990,046.52

Inv Type: 23 FEDERAL NATIONAL MORTGAGE ASSO

Subtotal 1.178540 92,231,000.00 92,486,233.63 245,992.38 126,531.29 .952126 92,871,995.46 100.276733 -512,199.79

Inv Type: 26 AGENCY ABS FXD-M 30/360

Subtotal 1.616771 1,005,000.00 1,015,046.90 1,354.06 0.00 1.184831 1,015,046.90 100.999692 0.00

Inv Type: 27 FEDERAL FARM CREDIT BANKS

Subtotal .972891 172,566,000.00 172,222,715.73 288,870.27 27,639.50 .993017 172,504,526.55 99.801071 -301,405.67

Inv Type: 28 FHLMC DISCOUNT NOTES

Subtotal .240000 249,000.00 248,811.18 441.56 0.00 .240573 248,407.38 99.924169 -37.76

Inv Type: 29 FHLMC NOTES

Subtotal .986787 116,460,000.00 116,194,015.65 252,110.81 55,445.92 .919834 116,611,869.02 99.771609 -464,402.23

AvantGard APS2 Page 1 of 6 Inventory by Market Value Page 6 As Of Date: 12/31/2015

Inv Type: 31 MUNICIPAL BONDS

Subtotal 2.493165 5,555,000.00 5,784,587.02 48,809.80 0.00 1.286599 5,784,587.02 104.132980 0.00

Inv Type: 41 FNMA DISCOUNT NOTES

Subtotal .400000 295,000.00 293,917.35 367.11 0.00 .401514 293,888.83 99.633000 -338.59

Inv Type: 42 FARM CREDIT DISCOUNT NOTES

Subtotal .472739 1,470,000.00 1,463,309.26 1,754.70 0.00 .475034 1,463,053.75 99.544848 -1,499.19

Inv Type: 43 FHLB DISCOUNT NOTES

Subtotal .290000 997,000.00 996,837.99 2,610.21 151.21 .290853 994,076.57 99.983750 0.00

Inv Type: 50 AUTO ABS FXD-M 30/360

Subtotal 1.066860 2,957,799.15 2,957,529.25 1,354.33 0.00 1.071196 2,957,529.25 99.990875 0.00

Inv Type: 53 CREDIT ABS FXD-SA 30/360

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: 71 COMMERCIAL PAPER DISCOUNT

Subtotal .531248 955,477,000.00 953,986,318.53 498,278.19 320,684.00 .532704 953,197,334.12 99.843986 -29,977.78

AvantGard APS2 Page 2 of 6 Inventory by Market Value Page 7 As Of Date: 12/31/2015

Inv Type: 72 NEGOTIABLE CERT OF DEPOSIT

Subtotal .551735 782,883,000.00 783,501,285.63 472,624.34 618,285.63 .551735 782,883,000.00 100.078975 0.00

Inv Type: 73 CORP NOTE FLTG RT ACT- 360

Subtotal .515733 10,500,000.00 10,499,780.00 12,753.67 47,550.00 2.298200 10,452,450.00 99.997905 -220.00

Inv Type: 74 CERT OF DEPOSIT MEDIUM TERM

Subtotal .951786 4,200,000.00 4,189,290.00 8,987.92 0.00 .951786 4,200,000.00 99.745000 -10,710.00

Inv Type: 75 CORPORATE NOTES

Subtotal 1.519862 138,957,000.00 139,126,659.26 602,098.88 193,048.14 1.271249 139,569,166.02 100.122095 -591,373.48

Inv Type: 79 YCD/NCD 30/360

Subtotal 1.265482 8,600,000.00 8,596,780.00 23,211.69 0.00 1.278261 8,596,780.00 99.962558 0.00

Inv Type: 80 YCD / NCD QTR FLTR

Subtotal .906028 3,515,000.00 3,515,000.00 3,707.48 0.00 .906028 3,515,000.00 100.000000 0.00

Inv Type: 99 MONEY MARKET ACCOUNTS

Subtotal .000000 565,318.32 565,318.32 0.00 0.00 .000000 565,318.32 100.000000 0.00

AvantGard APS2 Page 3 of 6 Inventory by Market Value Page 8 As Of Date: 12/31/2015

Inv Type: 1000 TD WITH CALC CODE OF CSC-00

Subtotal .600000 3,335.77 3,335.77 32.63 0.00 .600000 3,335.77 100.000000 0.00

Grand Total Count 393 .727041 2,570,711,453.24 2,569,513,821.31 2,925,791.98 1,469,719.74 .695505 2,570,728,827.44 99.953412 -3,099,344.95

AvantGard APS2 Page 4 of 6 Inventory by Market Value Page 9 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 10:00:56 AM Reporting Currency: Local Contra Costa County Assets (000's) Current Par Current Book Market MKT/Book Un Gain/Loss Yield U.S. TREASURIES 37,620.00 37,709.58 37,498.25 99.44 % -191.91 1.01 % Asset Allocation U.S. AGENCIES 618,273.00 619,680.52 617,675.46 99.68 % -1,985.00 0.93 % MUNICIPALS 5,555.00 5,784.59 5,784.59 100.00 % 0.00 1.29 % COMMERCIAL PAPER 955,477.00 953,197.33 953,986.32 100.08 % 290.71 0.53 % NCD/YCD 799,198.00 799,194.78 799,802.36 100.08 % 607.58 0.56 % CORPORATE NOTES 149,457.00 150,021.62 149,626.44 99.74 % -351.00 1.34 % MBS/ABS 4,562.80 4,571.76 4,571.76 100.00 % 0.00 1.10 % TIME DEPOSIT 3.34 3.34 3.34 100.00 % 0.00 0.60 % Money Market Accounts 565.32 565.32 565.32 100.00 % 0.00 0.00 % Totals(000's) 2,570,711.45 2,570,728.83 2,569,513.82 99.95 % -1,629.63 0.70 %

AvantGard APS2 Page 5 of 6 Inventory by Market Value Page 10 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 10:00:56 AM Reporting Currency: Local Contra Costa County

AvantGard APS2 Page 6 of 6 Inventory by Market Value Page 11 As Of Date: 12/31/2015

Inv Type: 12 TREASURY NOTES

81994 CCCCD GOV US TREASU 912828PK0 05/09/2014 2.250000 140,000.00 143,095.40 275.41 57.17 11/30/2017 1.165963 143,038.23 102.211000 SUNGARD 0.00 82003 CCCSIG GOV US TREAS 912828SY7 06/05/2014 .625000 365,000.00 363,390.35 199.45 0.00 05/31/2017 .818703 363,574.72 99.559000 SUNGARD -184.37 82056 CCCCD GOV US TREAS 912828VQ0 07/31/2014 1.375000 270,000.00 271,034.10 1,553.61 1,557.92 07/31/2018 1.446611 269,476.18 100.383000 SUNGARD 0.00 82136 CCCCD GOV US TREAS 912828C65 10/06/2014 1.625000 70,000.00 70,437.50 289.03 343.30 03/31/2019 1.589638 70,094.20 100.625000 SUNGARD 0.00 82181 CCCCD GOV US TREASU 912828KQ2 11/03/2014 3.125000 95,000.00 100,221.20 383.33 0.00 05/15/2019 1.503637 101,724.22 105.496000 SUNGARD -1,503.02 82182 CCCSIG GOV US TREAS 912828TB6 11/03/2014 .750000 2,860,000.00 2,851,076.80 58.93 0.00 06/30/2017 .788660 2,857,580.43 99.688000 SUNGARD -6,503.63 82377 CCCCD GOV US TREASU 912828VQ0 02/04/2015 1.375000 85,000.00 85,325.55 489.09 0.00 07/31/2018 .916641 86,195.31 100.383000 SUNGARD -869.76 82402 CCCCD GOV US TREASU 912828SH4 02/27/2015 1.375000 125,000.00 124,917.50 580.79 0.00 02/28/2019 1.336788 125,185.55 99.934000 SUNGARD -268.05 82403 CCCSIG GOV US TREAS 912828UU2 02/27/2015 .750000 3,500,000.00 3,468,675.00 6,670.08 3,264.84 03/31/2018 1.076208 3,465,410.16 99.105000 SUNGARD 0.00 82460 CCCSIG GOV US TREAS 912828F39 03/27/2015 1.750000 360,000.00 362,433.60 1,600.82 0.00 09/30/2019 1.403864 365,428.13 100.676000 SUNGARD -2,994.53 82461 CCCSIG GOV US TREAS 912828SM3 03/27/2015 1.000000 1,430,000.00 1,432,230.80 3,633.61 0.00 03/31/2017 .622165 1,437,700.61 100.156000 SUNGARD -5,469.81 82512 RM GOV US TREASURY 912828ST8 04/15/2015 1.250000 5,000,000.00 4,968,150.00 10,645.60 0.00 04/30/2019 1.138894 5,021,875.00 99.363000 SUNGARD -53,725.00 82544 CCCSIG GOV US TREAS 912828UU2 04/30/2015 .750000 515,000.00 510,390.75 981.46 0.00 03/31/2018 .874966 513,232.55 99.105000 SUNGARD -2,841.80 82577 CCCCD GOV US TREAS 912828ND8 05/29/2015 3.500000 240,000.00 258,019.20 1,084.62 0.00 05/15/2020 1.503393 262,828.13 107.508000 SUNGARD -4,808.93 82597 CCCSIG GOV US TREAS 912828QY9 07/06/2015 2.250000 945,000.00 969,655.05 8,897.89 0.00 07/31/2018 1.111402 976,449.50 102.609000 SUNGARD -6,794.45 82670 CCCSIG GOV US TREAS 912828K25 08/21/2015 .750000 4,000,000.00 3,961,240.00 6,393.44 0.00 04/15/2018 .921899 3,982,031.25 99.031000 SUNGARD -20,791.25 82679 CCCCD GOV US TREASU 912828VJ6 09/03/2015 1.875000 195,000.00 196,363.05 10.04 0.00 06/30/2020 1.499897 198,389.65 100.699000 SUNGARD -2,026.60 82710 CCCCD GOV US TREASU 912828UU2 09/29/2015 .750000 1,700,000.00 1,684,785.00 3,239.74 0.00

AvantGard APS2 Page 1 Inventory by Market Value Page 12 As Of Date: 12/31/2015

Inv Type: 22 FEDERAL HOME LOAN BANKS

80648 RM GOV FHLB NOTES 313373SZ6 06/11/2012 2.125000 1,895,000.00 1,907,222.75 2,349.01 0.00 06/10/2016 .760030 1,996,647.80 100.645000 SUNGARD -89,425.05 80662 RM GOV FHLB NOTES 313373SZ6 06/20/2012 2.125000 2,840,000.00 2,858,318.00 3,520.42 0.00 06/10/2016 .745089 2,993,104.40 100.645000 SUNGARD -134,786.40 80907 WT GOV FHLB NOTES 313380EC7 10/10/2012 .750000 170,000.00 168,915.40 400.22 0.00 09/08/2017 .790076 169,671.90 99.362000 SUNGARD -756.50 82000 RM GOV FHLB NOTES 313379VE6 06/02/2014 1.010000 2,875,000.00 2,876,638.75 967.92 0.00 06/19/2017 .850065 2,888,800.00 100.057000 SUNGARD -12,161.25 82012 RM GOV FEDERAL HOME 3130A2C61 06/13/2014 .375000 2,500,000.00 2,498,475.00 546.87 3,425.17 06/10/2016 .475000 2,495,049.83 99.939000 SUNGARD 0.00 82038 RM GOV FHLB NOTES 313379DT3 07/15/2014 1.250000 6,205,000.00 6,200,098.05 4,955.38 27,984.55 06/08/2018 1.390090 6,172,113.50 99.921000 SUNGARD 0.00 82053 RM GOV FHLB NOTES 313379DT3 07/28/2014 1.250000 3,000,000.00 2,997,630.00 2,395.83 15,630.00 06/08/2018 1.410094 2,982,000.00 99.921000 SUNGARD 0.00 82122 GOV FHLB NOTES 3130A33J1 09/19/2014 1.200000 5,000,000.00 5,013,150.00 17,000.00 13,150.00

AvantGard APS2 Page 2 Inventory by Market Value Page 13 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 09/19/2017 1.200000 5,000,000.00 100.263000 SUNGARD 0.00 82187 GOV FHLB NOTES 3130A3CE2 11/05/2014 .625000 10,000,000.00 9,995,300.00 13,368.06 0.00 10/14/2016 .572077 10,010,200.00 99.953000 SUNGARD -14,900.00 82189 RM GOV FHLB NOTES 3130A3EW0 11/07/2014 .500000 2,500,000.00 2,494,275.00 520.82 550.00 12/16/2016 .620043 2,493,725.00 99.771000 SUNGARD 0.00 82255 GOV FHLB NOTES 3130A3PC2 12/12/2014 .650000 5,000,000.00 4,989,750.00 1,715.28 0.00 12/12/2016 .720127 4,993,050.00 99.795000 SUNGARD -3,300.00 82256 RM GOV FHLB NOTES 3130A3Q64 12/12/2014 .700000 3,500,000.00 3,496,815.00 1,293.06 0.00 12/12/2016 .670252 3,502,065.00 99.909000 SUNGARD -5,250.00 82271 GOV FHLB NOTES 3130A3Q64 12/23/2014 .700000 5,000,000.00 4,995,450.00 1,847.22 2,300.00 12/12/2016 .770206 4,993,150.00 99.909000 SUNGARD 0.00 82275 GOV FHLB NOTES 3130A3TA2 12/30/2014 1.000000 10,000,000.00 9,998,700.00 37,777.78 0.00 08/15/2017 1.000000 10,000,000.00 99.987000 SUNGARD -1,300.00 82280 RM GOV FHLB NOTES 3130A3HF4 12/29/2014 1.125000 4,500,000.00 4,497,705.00 3,234.39 4,905.00 12/08/2017 1.180284 4,492,800.00 99.949000 SUNGARD 0.00 82281 GOV FHLB NOTES 3130A3UR3 01/06/2015 .750000 10,000,000.00 10,005,200.00 36,458.33 5,200.00 01/06/2017 .750000 10,000,000.00 100.052000 SUNGARD 0.00 82315 CCCCD GOV FHLB NOTE 313371PV2 01/21/2015 1.625000 6,165,000.00 6,210,621.00 6,122.18 0.00 12/09/2016 .571735 6,286,450.50 100.740000 SUNGARD -75,829.50 82316 CCCCD GOV FHLB NOTE 3130A2T97 01/21/2015 .500000 765,000.00 763,653.60 988.13 0.00 09/28/2016 .470201 765,382.50 99.824000 SUNGARD -1,728.90 82321 CCCCD GOV FHLB NOTE 3130A2T97 01/21/2015 .500000 11,470,000.00 11,449,812.80 14,815.42 0.00 09/28/2016 .470153 11,475,735.00 99.824000 SUNGARD -25,922.20 82322 CCCCD GOV FHLB NOTE 313371PV2 01/21/2015 1.625000 19,275,000.00 19,417,635.00 19,141.17 0.00 12/09/2016 .571735 19,654,717.50 100.740000 SUNGARD -237,082.50 82400 RM GOV FHLB NOTES 3133782M2 02/25/2015 1.500000 5,000,000.00 4,996,750.00 23,541.67 0.00 03/08/2019 1.415035 5,016,600.00 99.935000 SUNGARD -19,850.00 82408 GOV FHLB NOTES 3130A4GJ5 03/04/2015 1.125000 10,000,000.00 9,973,900.00 20,625.00 0.00 04/25/2018 1.155323 9,990,700.00 99.739000 SUNGARD -16,800.00 82419 GOV FHLB NOTES 3130A4K27 03/09/2015 .720000 10,000,000.00 9,978,300.00 23,000.00 0.00 03/06/2017 .802655 9,983,700.00 99.783000 SUNGARD -5,400.00 82437 RM GOV FHLB NOTES 3133782N0 03/16/2015 .875000 3,000,000.00 2,997,870.00 8,093.75 0.00 03/10/2017 .739127 3,008,010.00 99.929000 SUNGARD -10,140.00 82438 RM GOV FHLB NOTES 313382K85 03/16/2015 .450000 1,995,000.00 1,995,179.55 2,568.57 0.00 03/18/2016 .330364 1,997,394.00 100.009000 SUNGARD -2,214.45 82450 CCCSIG GOV FHLB 3130A4QV7 03/24/2015 .840000 1,600,000.00 1,597,648.00 3,621.33 0.00 03/24/2017 .840000 1,600,000.00 99.853000 SUNGARD -2,352.00

AvantGard APS2 Page 3 Inventory by Market Value Page 14 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 82451 CCCCD GOV FHLB 3130A4QV7 03/24/2015 .840000 165,000.00 164,757.45 373.45 0.00 03/24/2017 .840000 165,000.00 99.853000 SUNGARD -242.55 82503 PW GOV FHLB NOTES 3130A4ZY1 04/21/2015 .250000 1,610,000.00 1,609,211.10 793.82 16.10 04/20/2016 .300251 1,609,195.00 99.951000 SUNGARD 0.00 82550 GOV FHLB NOTES 3130A57K9 05/04/2015 1.000000 10,000,000.00 9,915,700.00 15,833.33 0.00 05/04/2018 1.050244 9,985,200.00 99.157000 SUNGARD -69,500.00 82552 GOV FHLB NOTES 3130A5DD8 05/07/2015 .720000 10,000,000.00 9,978,600.00 7,000.00 0.00 05/26/2017 .720000 10,000,000.00 99.786000 SUNGARD -21,400.00 82561 CCCSIG GOV FHLB 3130A5EP0 05/15/2015 .625000 1,430,000.00 1,423,307.60 769.62 0.00 05/30/2017 .666017 1,428,813.10 99.532000 SUNGARD -5,505.50 82579 GOV FHLB NOTES 3130A5HF9 06/01/2015 .730000 10,000,000.00 9,966,400.00 202.74 0.00 06/30/2017 .730000 10,000,000.00 99.664000 SUNGARD -33,600.00 82582 RM GOV FHLB NOTES 313379EE5 06/08/2015 1.625000 2,500,000.00 2,508,000.00 1,918.40 2,000.00 06/14/2019 1.563094 2,506,000.00 100.320000 SUNGARD 0.00 82583 GOV FHLB NOTES 3130A5NC9 06/11/2015 1.300000 5,000,000.00 4,968,350.00 11,013.91 0.00 10/30/2018 1.300000 5,000,000.00 99.367000 SUNGARD -31,650.00 82590 GOV FHLB NOTES 3130A5JD2 06/29/2015 1.100000 10,000,000.00 9,948,800.00 611.11 0.00 06/29/2018 1.100000 10,000,000.00 99.488000 SUNGARD -51,200.00 82619 CLT GOV FHLB NOTES 3133834R9 07/10/2015 .375000 250,000.00 249,687.50 18.23 0.00 06/24/2016 .330927 250,105.00 99.875000 SUNGARD -417.50 82637 CCCSIG GOV FHLB 3130A62S5 07/24/2015 .750000 295,000.00 293,522.05 755.96 0.00 08/28/2017 .858202 294,439.27 99.499000 SUNGARD -917.22 82664 GOV FHLB NOTES 3130A6B63 08/14/2015 1.200000 10,000,000.00 9,964,400.00 45,666.67 0.00 08/14/2018 1.200000 10,000,000.00 99.644000 SUNGARD -35,600.00 82669 CCCSIG GOV FHLB 3130A5EP0 08/21/2015 .625000 1,000,000.00 995,320.00 538.19 0.00 05/30/2017 .692495 998,810.00 99.532000 SUNGARD -3,490.00 82694 RM GOV FHLB NOTES 313380FB8 09/21/2015 1.375000 2,500,000.00 2,470,400.00 10,312.50 0.00 09/13/2019 1.400130 2,498,338.89 98.816000 SUNGARD -27,175.00 82781 GOV FHLB NOTES 3130A6RC3 11/04/2015 1.150000 5,000,000.00 4,968,150.00 9,104.17 0.00 11/02/2018 1.150000 5,000,000.00 99.363000 SUNGARD -31,850.00 82848 GOV FHLB NOTES 3130A6SW8 12/21/2015 1.000000 10,000,000.00 9,975,100.00 3,333.34 0.00 12/19/2017 1.035037 9,993,655.56 99.751000 SUNGARD -18,000.00 82875 GOV FHLB NOTES 3130A3HF4 12/30/2015 1.125000 10,000,000.00 9,994,900.00 7,187.50 0.00 12/08/2017 1.150014 10,002,075.00 99.949000 SUNGARD -300.00 Subtotal 1.027898 234,005,000.00 233,769,618.60 366,300.75 75,160.82 .893674 234,692,698.75 99.899412 -990,046.52

AvantGard APS2 Page 4 Inventory by Market Value Page 15 As Of Date: 12/31/2015

Inv Type: 23 FEDERAL NATIONAL MORTGAGE ASSO

80020 WT GOV FNMA NOTES 3135G0CM3 11/09/2011 1.250000 173,000.00 173,626.26 558.65 0.00 09/28/2016 1.160000 173,736.98 100.362000 SUNGARD -110.72 80281 RM GOV FNMA NOTES 3135G0AL7 01/23/2012 2.250000 4,035,000.00 4,049,404.95 26,731.88 0.00 03/15/2016 1.000170 4,239,211.35 100.357000 SUNGARD -189,806.40 80833 RM GOV FNMA NOTES 3135G0CM3 09/14/2012 1.250000 4,703,000.00 4,720,024.86 15,186.77 0.00 09/28/2016 .615791 4,821,797.78 100.362000 SUNGARD -101,772.92 81230 WT GOV FNMA NOTES 3135G0TG8 02/21/2013 .875000 165,000.00 163,917.60 573.49 0.00 02/08/2018 .970000 164,242.02 99.344000 SUNGARD -324.42 81361 RM GOV FEDERAL NATL 3135G0JA2 04/15/2013 1.125000 3,900,000.00 3,906,435.00 7,800.01 0.00 04/27/2017 .600233 3,981,432.00 100.165000 SUNGARD -74,997.00 81449 GOV FNMA CALLABLE M 3136G1M63 05/22/2013 .750000 10,000,000.00 10,001,300.00 8,125.00 1,300.00 05/22/2018 .750000 10,000,000.00 100.013000 SUNGARD 0.00 81478 AUHSD GOV FNMA NOTE 3135G0WJ8 06/07/2013 .875000 200,000.00 198,126.00 194.44 1,150.00 05/21/2018 1.190082 196,976.00 99.063000 SUNGARD 0.00 81484 GOV FNMA CALLABLE M 3136G1MU0 06/12/2013 1.000000 5,000,000.00 5,005,050.00 2,638.89 7,100.00 06/12/2018 1.013910 4,997,950.00 100.101000 SUNGARD 0.00 81538 WT GOV FNMA NOTES 3135G0WJ8 07/17/2013 .875000 164,000.00 162,463.32 159.44 2,933.96 05/21/2018 1.459815 159,529.36 99.063000 SUNGARD 0.00 81889 AUHSD GOV FNMA NOTE 3135G0ZA4 04/01/2014 1.875000 377,000.00 382,059.34 2,591.88 3,660.67 02/19/2019 1.795148 378,398.67 101.342000 SUNGARD 0.00 81890 AUHSD GOV FNMA NOTE 3135G0ZA4 04/01/2014 1.875000 6,959,000.00 7,052,389.78 47,843.15 67,571.89 02/19/2019 1.795148 6,984,817.89 101.342000 SUNGARD 0.00 81941 GOV FNMA NOTE 3135G0MZ3 04/17/2014 .875000 10,000,000.00 9,965,900.00 29,895.83 25,100.00 08/28/2017 1.054521 9,940,800.00 99.659000 SUNGARD 0.00 81999 MDUSD GOV FNMA NOTE 3135G0ZB2 05/21/2014 .750000 49,000.00 48,860.84 72.48 0.00 04/20/2017 .740235 49,013.72 99.716000 SUNGARD -152.88 82005 CCCCD GOV FNMA 3135G0YT4 06/05/2014 1.625000 115,000.00 115,837.20 176.49 164.45 11/27/2018 1.489435 115,672.75 100.728000 SUNGARD 0.00 82087 CCCCD GOV FNMA NOTE 3135G0ZL0 08/25/2014 1.000000 130,000.00 129,707.50 339.44 171.60 09/27/2017 1.117972 129,535.90 99.775000 SUNGARD 0.00 82114 CCCSIG GOV FNMA NOT 3135G0JA2 09/08/2014 1.125000 555,000.00 555,915.75 1,109.99 0.00 04/27/2017 .895628 558,307.80 100.165000 SUNGARD -2,392.05 82119 WT GOV FNMA NOTES 3135G0ZG1 09/12/2014 1.750000 166,000.00 166,876.48 879.57 1,978.72 09/12/2019 1.889799 164,897.76 100.528000 SUNGARD 0.00 82156 CCCCD GOV FNMA 3135G0YT4 10/23/2014 1.625000 125,000.00 125,910.00 191.85 0.00

AvantGard APS2 Page 5 Inventory by Market Value Page 16 As Of Date: 12/31/2015

Inv Type: 26 AGENCY ABS FXD-M 30/360

82344 CCCSIG GOV FNMA ACE 3136AMKW8 01/30/2015 1.626000 440,000.00 444,396.70 596.20 0.00 02/25/2018 1.293773 444,396.70 100.999250 BOOK 0.00 82545 CCCSIG GOV FNMA-ACE 3136ANJY4 04/30/2015 1.550000 385,000.00 388,848.61 497.30 0.00 04/01/2018 1.201381 388,848.61 100.999639 BOOK 0.00 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 01/25/2019 1.572772 65,649.99 100.999985 BOOK 0.00 Subtotal 1.616771 1,005,000.00 1,015,046.90 1,354.06 0.00

AvantGard APS2 Page 6 Inventory by Market Value Page 17 As Of Date: 12/31/2015

Inv Type: 27 FEDERAL FARM CREDIT BANKS

80522 RM GOV FFCB NOTES 3133EAJU3 04/13/2012 1.050000 4,040,000.00 4,046,181.20 10,958.50 0.00 03/28/2016 .810254 4,077,652.80 100.153000 SUNGARD -31,471.60 80543 RM GOV FFCB NOTES 3133EAJU3 04/20/2012 1.050000 3,957,000.00 3,963,054.21 10,733.37 0.00 03/28/2016 .790000 3,996,818.30 100.153000 SUNGARD -33,764.09 80718 RM GOV FFCB NOTES 3133EAXG8 07/23/2012 .650000 2,494,000.00 2,495,321.82 7,610.16 0.00 07/12/2016 .600206 2,498,863.30 100.053000 SUNGARD -3,541.48 81479 AUHSD GOV FFCB NOTE 3133ECPT5 06/07/2013 .650000 200,000.00 198,944.00 158.89 30.00 05/17/2017 .790074 198,914.00 99.472000 SUNGARD 0.00 81579 RM GOV FFCB NOTES 3133ECWV2 08/20/2013 .875000 2,505,000.00 2,507,304.60 1,461.24 10,170.30 12/07/2016 .972048 2,497,134.30 100.092000 SUNGARD 0.00 81958 GOV FEDERAL FARM CR 3133EDKJ0 05/01/2014 .700000 5,000,000.00 4,990,100.00 5,833.33 0.00 11/01/2016 .700000 5,000,000.00 99.802000 SUNGARD -9,900.00 82137 GOV FFCB NOTES 3133EDXA5 10/10/2014 1.150000 10,000,000.00 10,006,100.00 25,875.00 8,100.00 10/10/2017 1.156802 9,998,000.00 100.061000 SUNGARD 0.00 82185 RM GOV FFCB NOTES 3133EDYB2 11/04/2014 1.500000 2,000,000.00 1,990,920.00 13,750.00 620.00 01/16/2019 1.620035 1,990,300.00 99.546000 SUNGARD 0.00 82195 GOV FFCB NOTES 3133EEBU3 11/18/2014 .600000 10,000,000.00 9,975,600.00 7,833.33 0.00 11/14/2016 .600000 10,000,000.00 99.756000 SUNGARD -24,400.00 82218 GOV FFCB NOTES 3133EEDQ0 12/01/2014 .580000 5,000,000.00 4,996,600.00 2,416.67 0.00 12/01/2016 .590074 4,999,000.00 99.932000 SUNGARD -2,400.00 82259 GOV FFCB NOTES 3133EEFA3 12/15/2014 .720000 10,000,000.00 9,989,200.00 3,200.00 0.00 12/15/2016 .720000 10,000,000.00 99.892000 SUNGARD -10,800.00 82318 CCCCD GOV FFCB AGEN 3133EEKM1 01/21/2015 .300000 3,040,000.00 3,041,094.40 2,533.33 1,386.24 03/21/2016 .308272 3,039,708.16 100.036000 SUNGARD 0.00 82323 CCCCD GOV FFCB AGEN 3133EEKM1 01/21/2015 .300000 10,160,000.00 10,163,657.60 8,466.67 4,632.96 03/21/2016 .308272 10,159,024.64 100.036000 SUNGARD 0.00 82380 GOV FFCB NOTES 3133EEKB5 02/09/2015 1.000000 10,000,000.00 9,974,600.00 44,166.67 2,700.00 01/22/2018 1.096935 9,971,900.00 99.746000 SUNGARD 0.00 82382 RM GOV FFCB NOTES 3133EELZ1 02/09/2015 1.000000 5,000,000.00 4,973,950.00 12,777.76 0.00 03/29/2018 1.130145 4,980,000.00 99.479000 SUNGARD -6,050.00 82472 GOV FFCB NOTES 3133EEWH9 04/02/2015 1.000000 10,000,000.00 9,973,400.00 24,722.22 0.00 04/02/2018 1.000000 10,000,000.00 99.734000 SUNGARD -26,600.00 82671 RM GOV FFCB NOTES 3133EE5S5 08/25/2015 1.500000 1,000,000.00 991,420.00 6,083.33 0.00

AvantGard APS2 Page 7 Inventory by Market Value Page 18 As Of Date: 12/31/2015

Inv Type: 28 FHLMC DISCOUNT NOTES

82483 RM GOV FHLMC DISC N 313396VA8 04/10/2015 .240000 249,000.00 248,811.18 441.56 0.00 04/01/2016 .240573 248,407.38 99.924167 SUNGARD -37.76 Subtotal .240000 249,000.00 248,811.18 441.56 0.00 .240573 248,407.38 99.924169 -37.76

Inv Type: 29 FHLMC NOTES

79343 WT GOV FHLMC NOTES 3134A4ZT4 02/25/2011 4.750000 155,000.00 155,289.85 3,313.13 0.00 01/19/2016 2.330564 172,267.00 100.187000 SUNGARD -16,977.15 80411 WT GOV FHLMC NOT 3137EADC0 03/12/2012 1.000000 170,000.00 170,141.10 533.61 1,128.80 03/08/2017 1.120062 169,012.30 100.083000 SUNGARD 0.00

AvantGard APS2 Page 8 Inventory by Market Value Page 19 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 80900 CCCCD GOV FHLMC 3137EADL0 10/05/2012 1.000000 45,000.00 44,876.25 115.00 0.00 09/29/2017 .764157 45,263.53 99.725000 SUNGARD -387.28 81847 RM GOV FHLMC NOTE3S 3137EADC0 02/25/2014 1.000000 3,870,000.00 3,873,212.10 12,147.50 0.00 03/08/2017 .780254 3,895,464.60 100.083000 SUNGARD -22,252.50 81869 RM GOV FEDERAL HOME 3137EADP1 03/14/2014 .875000 7,061,000.00 7,011,431.78 19,564.87 52,957.50 03/07/2018 1.250049 6,958,474.28 99.298000 SUNGARD 0.00 81870 WT GOV FEDERAL HOME 3137EADP1 03/12/2014 .875000 157,000.00 155,897.86 435.02 1,359.62 03/07/2018 1.279731 154,538.24 99.298000 SUNGARD 0.00 82009 RM GOV FHLMC 3137EADH9 06/13/2014 1.000000 2,484,000.00 2,483,751.60 138.00 0.00 06/29/2017 .945000 2,488,088.17 99.990000 SUNGARD -4,336.57 82026 GOV FHLMC NOTES 3137EADL0 07/03/2014 1.000000 10,000,000.00 9,972,500.00 25,555.56 0.00 09/29/2017 1.070130 9,977,700.00 99.725000 SUNGARD -5,200.00 82076 CCCCD GOV FHLMC 3137EADJ5 08/14/2014 1.000000 75,000.00 74,875.50 318.75 0.00 07/28/2017 1.001893 74,995.80 99.834000 SUNGARD -120.30 82077 CCCCD GOV FHLMC 3137EADJ5 08/14/2014 1.000000 40,000.00 39,933.60 170.00 0.00 07/28/2017 1.002272 39,997.77 99.834000 SUNGARD -64.17 82078 GOV FHLMC NOTES 3137EADL0 08/11/2014 1.000000 5,000,000.00 4,986,250.00 12,777.78 0.00 09/29/2017 1.033085 4,994,900.00 99.725000 SUNGARD -8,650.00 82080 CCCSIG GOV FHLMC 3137EADJ5 08/14/2014 1.000000 810,000.00 808,655.40 3,442.50 0.00 07/28/2017 1.001893 809,954.64 99.834000 SUNGARD -1,299.24 82081 CCCSIG GOV FHLMC 3137EADJ5 08/14/2014 1.000000 465,000.00 464,228.10 1,976.25 0.00 07/28/2017 1.002272 464,974.04 99.834000 SUNGARD -745.94 82312 AUHSD GOV FHLMC NOT 3134G3ZW3 01/21/2015 1.200000 2,486,000.00 2,470,586.80 11,849.93 0.00 08/08/2018 1.200000 2,486,000.00 99.380000 SUNGARD -15,413.20 82313 AUHSD GOV FHLMC NOT 3134G3ZW3 01/21/2015 1.200000 110,000.00 109,318.00 524.33 0.00 08/08/2018 1.200000 110,000.00 99.380000 SUNGARD -682.00 82317 CCCCD GOV FREDDIE M 3137EADC0 01/21/2015 1.000000 19,555,000.00 19,571,230.65 61,380.97 0.00 03/08/2017 .643501 19,702,249.15 100.083000 SUNGARD -131,018.50 82319 CCCCD GOV FHLMC 3137EADC0 01/21/2015 1.000000 9,485,000.00 9,492,872.55 29,772.36 0.00 03/08/2017 .643501 9,556,422.05 100.083000 SUNGARD -63,549.50 82343 CCCSIG GOV FHLMC 3137EADC0 01/29/2015 1.000000 985,000.00 985,817.55 3,091.81 0.00 03/08/2017 .672177 991,747.25 100.083000 SUNGARD -5,929.70 82446 CCCCD GOV FHLMC 3137EADJ5 03/20/2015 1.000000 95,000.00 94,842.30 403.75 0.00 07/28/2017 .853802 95,323.00 99.834000 SUNGARD -480.70 82447 CCCSIG GOV FHLMC 3137EADJ5 03/20/2015 1.000000 4,305,000.00 4,297,853.70 18,296.25 0.00 07/28/2017 .853802 4,319,637.00 99.834000 SUNGARD -21,783.30 82549 GOV FHLMC NOTES 3134G6YC1 05/01/2015 .670000 10,000,000.00 9,955,700.00 5,769.40 0.00

AvantGard APS2 Page 9 Inventory by Market Value Page 20 As Of Date: 12/31/2015

Inv Type: 31 MUNICIPAL BONDS

80198 AUHSD MUNI COMPTON 204712FD0 01/03/2012 .000000 10,000.00 7,453.00 0.00 0.00 08/01/2016 6.525847 7,453.00 74.530000 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 08/01/2017 1.402000 440,000.00 100.000000 BOOK 0.00 81277 CCCSIG MUNI UNIV OF 91412GPX7 03/14/2013 .659000 1,240,000.00 1,240,000.00 1,044.15 0.00 05/15/2016 .659000 1,240,000.00 100.000000 BOOK 0.00 81278 CCCCD MUNI UNIV OF 91412GPY5 03/14/2013 .966000 175,000.00 175,000.00 216.01 0.00 05/15/2017 .966000 175,000.00 100.000000 BOOK 0.00 81508 AUHSD MUNI CHICAGO 167486JB6 06/27/2013 5.000000 170,000.00 189,542.34 4,250.00 0.00 01/01/2017 1.618751 189,542.34 111.495494 BOOK 0.00 81509 AUHSD MUNI CHICAGO 167486JC4 06/27/2013 5.000000 390,000.00 421,318.77 9,750.00 0.00 01/01/2017 2.592295 421,318.77 108.030454 BOOK 0.00 81510 AUHSD MUNI WASHINGT 93974B3K6 06/27/2013 5.000000 600,000.00 696,925.06 15,000.00 0.00 01/01/2018 1.301222 696,925.06 116.154177 BOOK 0.00 81512 AUHSD MUNI SOUTH BE 836496NW5 06/27/2013 5.000000 505,000.00 547,506.38 11,643.06 0.00 01/15/2016 1.616968 547,506.38 108.417105 BOOK 0.00 81514 AUHSD MUNI WICOMICO 967545R89 06/27/2013 3.500000 390,000.00 427,550.12 1,137.50 0.00

AvantGard APS2 Page 10 Inventory by Market Value Page 21 As Of Date: 12/31/2015

Inv Type: 41 FNMA DISCOUNT NOTES

82684 RM GOV FNMA DISC 313588C29 09/11/2015 .400000 295,000.00 293,917.35 367.11 0.00 08/15/2016 .401514 293,888.83 99.633000 SUNGARD -338.59 Subtotal .400000 295,000.00 293,917.35 367.11 0.00 .401514 293,888.83 99.633000 -338.59

Inv Type: 42 FARM CREDIT DISCOUNT NOTES

82680 DCD GOV FFCB DISCOU 313312E30 09/04/2015 .430000 1,100,000.00 1,095,377.56 1,563.53 0.00 09/01/2016 .431873 1,095,230.58 99.579778 SUNGARD -1,416.55 82813 RM GOV FFCB DISC 313312P95 12/01/2015 .600000 370,000.00 367,931.70 191.17 0.00 11/18/2016 .603550 367,823.17 99.441000 SUNGARD -82.64 Subtotal .472739 1,470,000.00 1,463,309.26 1,754.70 0.00 .475034 1,463,053.75 99.544848 -1,499.19

Inv Type: 43 FHLB DISCOUNT NOTES

82383 RM GOV FHLB DISCOUN 313384SW0 02/10/2015 .290000 997,000.00 996,837.99 2,610.21 151.21 02/09/2016 .290853 994,076.57 99.983750 SUNGARD 0.00 Subtotal .290000 997,000.00 996,837.99 2,610.21 151.21 .290853 994,076.57 99.983750 0.00

AvantGard APS2 Page 11 Inventory by Market Value Page 22 As Of Date: 12/31/2015

Inv Type: 50 AUTO ABS FXD-M 30/360

82341 CCCSIG CORP HONDA A 43814KAB7 01/28/2015 .700000 317,150.92 317,134.37 98.67 0.00 06/15/2017 .704310 317,134.37 99.994782 BOOK 0.00 82409 CCCSIG AB TOYOTA AU 89236WAB4 03/04/2015 .710000 520,648.23 520,643.29 164.30 0.00 07/17/2017 .710792 520,643.29 99.999051 BOOK 0.00 82502 CCCSIG ABS NAROT 20 65477UAC4 04/14/2015 1.050000 845,000.00 844,822.38 394.33 0.00 10/15/2019 1.059409 844,822.38 99.978980 BOOK 0.00 82636 CCCSIG ABS NISSAN A 65475WAD0 07/22/2015 1.340000 820,000.00 819,934.81 488.36 0.00 03/16/2020 1.343408 819,934.81 99.992050 BOOK 0.00 82665 CCCSIG ABS HONDA 20 43814MAC1 08/19/2015 1.270000 455,000.00 454,994.40 208.67 0.00 04/18/2019 1.270662 454,994.40 99.998769 BOOK 0.00 Subtotal 1.066860 2,957,799.15 2,957,529.25 1,354.33 0.00 1.071196 2,957,529.25 99.990875 0.00

Inv Type: 53 CREDIT ABS FXD-SA 30/360

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 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: 71 COMMERCIAL PAPER DISCOUNT

82557 PW CP TOYOTA MOTOR 89233GB54 05/12/2015 .360000 500,000.00 499,815.28 1,170.00 0.00 02/05/2016 .360971 498,655.00 99.963056 SUNGARD -9.72 82657 CP UBS FINANCIAL SE 90262CAU1 08/06/2015 .470000 25,000,000.00 24,992,875.00 48,305.56 1,687.50 01/28/2016 .471076 24,942,881.94 99.971500 SUNGARD 0.00 82666 CCCSIG CP JPM SECUR 46640PEG4 08/21/2015 .680000 2,000,000.00 1,996,146.67 5,024.44 1,284.45 05/16/2016 .683473 1,989,837.78 99.807333 SUNGARD 0.00 82667 PW CP UBS FINANCE D 90262CBH9 08/24/2015 .540000 500,000.00 499,751.94 975.00 104.44 02/17/2016 .541438 498,672.50 99.950389 SUNGARD 0.00 82668 CP UBS FINANCE DE 90262CBH9 08/24/2015 .540000 500,000.00 499,751.94 975.00 104.44 02/17/2016 .541438 498,672.50 99.950389 SUNGARD 0.00 82677 PW CP UBS FINANCE D 90262CC13 09/01/2015 .550000 1,750,000.00 1,748,775.00 3,261.80 379.17 03/01/2016 .551533 1,745,134.03 99.930000 SUNGARD 0.00 82695 CCCCD CP JPMSCC 46640PFH1 09/22/2015 .650000 3,950,000.00 3,940,599.00 7,203.26 2,580.65

AvantGard APS2 Page 12 Inventory by Market Value Page 23 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 06/17/2016 .653172 3,930,815.09 99.762000 SUNGARD 0.00 82696 CCCCD CP BK OF TOKY 06538BCM3 09/22/2015 .510000 3,950,000.00 3,946,313.33 5,651.79 790.00 03/21/2016 .511311 3,939,871.54 99.906667 SUNGARD 0.00 82698 CCCCD CP JPMSCC 46640PFH1 09/22/2015 .650000 1,995,000.00 1,990,251.90 3,638.10 1,303.40 06/17/2016 .653172 1,985,310.40 99.762000 SUNGARD 0.00 82699 CCCCD CP BK OF TOKY 06538BCM3 09/22/2015 .510000 1,995,000.00 1,993,138.00 2,854.51 399.00 03/21/2016 .511311 1,989,884.49 99.906667 SUNGARD 0.00 82704 CP SOCIETE GENERALE 83369BA48 09/29/2015 .275000 30,000,000.00 29,999,050.00 21,541.67 0.00 01/04/2016 .275204 29,977,770.83 99.996833 SUNGARD -262.50 82735 CP ABBEY NATIONAL 00280NBA7 10/07/2015 .340000 25,000,000.00 24,989,444.44 20,305.56 0.00 02/10/2016 .340405 24,970,250.00 99.957778 SUNGARD -1,111.12 82758 CP SOCIETE GENERALE 83369BBR6 10/20/2015 .315000 25,000,000.00 24,985,486.11 15,968.75 0.00 02/25/2016 .315353 24,972,000.00 99.941944 SUNGARD -2,482.64 82761 CP NORDEA BANK 65558FB12 10/26/2015 .210000 30,000,000.00 29,990,183.33 11,725.00 0.00 02/01/2016 .210120 29,982,850.00 99.967278 SUNGARD -4,391.67 82763 CP TOYOTA MOTOR CRE 89233GC95 10/29/2015 .310000 25,000,000.00 24,980,166.67 13,777.78 0.00 03/09/2016 .310353 24,971,583.33 99.920667 SUNGARD -5,194.44 82764 CP BNP PARIBAS 09659BCR9 10/29/2015 .400000 25,000,000.00 24,975,500.00 17,777.78 0.00 03/25/2016 .400659 24,958,888.89 99.902000 SUNGARD -1,166.67 82765 CP TOYOTA MOTOR CRE 89233GCB0 10/28/2015 .320000 20,000,000.00 19,983,666.67 11,555.56 0.00 03/11/2016 .320384 19,976,000.00 99.918333 SUNGARD -3,888.89 82766 CP BNP PARIBAS 09659BCV0 10/30/2015 .400000 30,000,000.00 29,969,200.00 21,000.00 0.00 03/29/2016 .400672 29,949,666.67 99.897333 SUNGARD -1,466.67 82767 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 500,000.00 498,160.00 551.25 0.00 07/26/2016 .632991 497,637.50 99.632000 SUNGARD -28.75 82768 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 6,600,000.00 6,575,712.00 7,276.50 0.00 07/26/2016 .632991 6,568,815.00 99.632000 SUNGARD -379.50 82769 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 500,000.00 498,160.00 551.25 0.00 07/26/2016 .632991 497,637.50 99.632000 SUNGARD -28.75 82770 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 500,000.00 498,160.00 551.25 0.00 07/26/2016 .632991 497,637.50 99.632000 SUNGARD -28.75 82771 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 250,000.00 249,080.00 275.63 0.00 07/26/2016 .632991 248,818.75 99.632000 SUNGARD -14.38 82772 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 500,000.00 498,160.00 551.25 0.00 07/26/2016 .632991 497,637.50 99.632000 SUNGARD -28.75 82773 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 250,000.00 249,080.00 275.63 0.00 07/26/2016 .632991 248,818.75 99.632000 SUNGARD -14.38

AvantGard APS2 Page 13 Inventory by Market Value Page 24 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 82774 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 150,000.00 149,448.00 165.38 0.00 07/26/2016 .632991 149,291.25 99.632000 SUNGARD -8.63 82775 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 250,000.00 249,080.00 275.63 0.00 07/26/2016 .632991 248,818.75 99.632000 SUNGARD -14.38 82776 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 250,000.00 249,080.00 275.63 0.00 07/26/2016 .632991 248,818.75 99.632000 SUNGARD -14.38 82777 PW CP TOYOTA MOTOR 89233GGS9 10/30/2015 .630000 250,000.00 249,080.00 275.63 0.00 07/26/2016 .632991 248,818.75 99.632000 SUNGARD -14.38 82780 CP UBS FINANCE DE 90262CCU9 11/03/2015 .390000 25,000,000.00 24,974,625.00 15,979.17 0.00 03/28/2016 .390618 24,960,458.33 99.898500 SUNGARD -1,812.50 82790 PW CP TOYOTA MOTOR 89233GE93 11/10/2015 .520000 1,625,000.00 1,622,030.31 1,220.55 58.23 05/09/2016 .521363 1,620,751.53 99.817250 SUNGARD 0.00 82791 CP UBS FINANCE DE 90262CCX3 11/10/2015 .420000 25,000,000.00 24,971,875.00 15,166.67 0.00 03/31/2016 .420697 24,958,583.33 99.887500 SUNGARD -1,875.00 82794 CP ABBEY NATIONAL T 00280NDB3 11/13/2015 .500000 20,000,000.00 19,974,750.00 13,611.11 2,805.56 04/11/2016 .501044 19,958,333.33 99.873750 SUNGARD 0.00 82795 CP SOCIETE GENERALE 83369BDF0 11/16/2015 .390000 25,000,000.00 24,967,187.50 12,458.33 0.00 04/15/2016 .390639 24,959,104.17 99.868750 SUNGARD -4,375.00 82797 CP STANDARD CHARTER 85324TDF0 11/17/2015 .480000 25,000,000.00 24,967,187.50 15,000.00 2,187.50 04/15/2016 .480962 24,950,000.00 99.868750 SUNGARD 0.00 82799 CP STANDARD CHARTER 85324TDF0 11/18/2015 .530000 25,000,000.00 24,967,187.50 16,194.44 5,833.31 04/15/2016 .531165 24,945,159.75 99.868750 SUNGARD 0.00 82809 CP STANDARD CHARTER 85324TDU7 11/30/2015 .590000 30,000,000.00 29,955,750.00 15,733.33 13,766.67 04/28/2016 .591454 29,926,250.00 99.852500 SUNGARD 0.00 82810 CP CREDIT AGRICOLE 22533TDR4 11/25/2015 .490000 25,000,000.00 24,964,062.50 12,590.28 3,194.44 04/25/2016 .491016 24,948,277.78 99.856250 SUNGARD 0.00 82811 CP ABBEY NATIONAL 00280NDF4 11/25/2015 .460000 25,000,000.00 24,967,187.50 11,819.44 729.17 04/15/2016 .460836 24,954,638.89 99.868750 SUNGARD 0.00 82815 CP ABBEY NATIONAL 00280NDE7 12/02/2015 .460000 25,000,000.00 24,967,500.00 9,583.33 722.23 04/14/2016 .460789 24,957,194.44 99.870000 SUNGARD 0.00 82816 CP CREDIT SUISSE NY 2254EADF7 12/02/2015 .500000 25,000,000.00 24,967,187.50 10,416.67 3,645.83 04/15/2016 .500939 24,953,125.00 99.868750 SUNGARD 0.00 82823 CP CREDIT AGRICOLE 22533TDT0 12/07/2015 .520000 25,000,000.00 24,963,437.50 9,027.78 5,687.50 04/27/2016 .521069 24,948,722.22 99.853750 SUNGARD 0.00 82824 CP STANDARD CHARTER 85324TEB8 12/07/2015 .640000 20,000,000.00 19,962,883.33 8,888.89 9,461.11 05/11/2016 .641780 19,944,533.33 99.814417 SUNGARD 0.00 82825 CP CREDIT SUISSE NY 2254EAEA7 12/07/2015 .580000 25,000,000.00 24,953,958.33 10,069.45 6,319.44

AvantGard APS2 Page 14 Inventory by Market Value Page 25 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 05/10/2016 .581452 24,937,569.44 99.815833 SUNGARD 0.00 82826 CP NORDEA BANK AB 65558FED3 12/08/2015 .590000 30,000,000.00 29,943,475.00 11,800.00 8,866.67 05/13/2016 .591522 29,922,808.33 99.811583 SUNGARD 0.00 82831 CP CREDIT AGRICOLE 22533TEG7 12/09/2015 .650000 25,000,000.00 24,951,833.33 10,381.94 13,222.22 05/16/2016 .651871 24,928,229.17 99.807333 SUNGARD 0.00 82832 CP TOYOTA MOTOR CRE 89233GER3 12/10/2015 .670000 25,000,000.00 24,948,645.83 10,236.11 16,111.11 05/25/2016 .672089 24,922,298.61 99.794583 SUNGARD 0.00 82834 CP BK OF NOVA SCOTI 06417JET5 12/10/2015 .690000 30,000,000.00 29,937,525.00 12,650.00 22,050.00 05/27/2016 .692242 29,902,825.00 99.791750 SUNGARD 0.00 82835 CP BNP PARIBAS 09659BEX4 12/11/2015 .710000 30,000,000.00 29,935,825.00 12,425.00 25,166.67 05/31/2016 .712417 29,898,233.33 99.786083 SUNGARD 0.00 82836 CP BANK OF NOVA SCO 06417JEX6 12/11/2015 .660000 30,000,000.00 29,935,825.00 11,550.00 18,875.00 05/31/2016 .662088 29,905,400.00 99.786083 SUNGARD 0.00 82839 CP BNP PARIBAS 09659BFQ8 12/16/2015 .790000 25,000,000.00 24,938,020.83 8,777.78 34,027.77 06/24/2016 .793325 24,895,215.28 99.752083 SUNGARD 0.00 82840 CP BNP PARIBAS 09659BFD7 12/16/2015 .790000 20,000,000.00 19,953,533.33 7,022.22 25,511.11 06/13/2016 .793133 19,921,000.00 99.767667 SUNGARD 0.00 82844 CP TOYOTA MOTOR CRE 89233GFP6 12/17/2015 .790000 10,000,000.00 9,975,350.00 3,291.67 13,533.33 06/23/2016 .793290 9,958,525.00 99.753500 SUNGARD 0.00 82849 CCCCD CP BNP PARIBA 09659BFM7 12/21/2015 .820000 3,950,000.00 3,940,375.17 989.69 5,850.40 06/21/2016 .823433 3,933,535.08 99.756333 SUNGARD 0.00 82850 CCCCD CP BNP PARIBA 09659BFM7 12/21/2015 .820000 1,995,000.00 1,990,138.85 499.86 2,954.81 06/21/2016 .823432 1,986,684.18 99.756333 SUNGARD 0.00 82851 CCCSD CP ABBEY NATI 00280NGN4 12/21/2015 .740000 4,000,000.00 3,985,564.44 904.44 2,255.56 07/22/2016 .743270 3,982,404.44 99.639111 SUNGARD 0.00 82853 CCCSD CP TOYOTA MOT 89233GGN0 12/21/2015 .840000 5,000,000.00 4,981,955.56 1,283.33 5,638.90 07/22/2016 .844216 4,975,033.33 99.639111 SUNGARD 0.00 82861 SO CP MUFG UNION BA 62478XAR1 12/24/2015 .280000 2,200,000.00 2,199,442.67 136.89 0.00 01/25/2016 .280072 2,199,452.44 99.974667 SUNGARD -146.66 82862 SO CP MUFG UNION BA 62478XAR1 12/24/2015 .280000 1,200,000.00 1,199,696.00 74.67 0.00 01/25/2016 .280073 1,199,701.33 99.974667 SUNGARD -80.00 82863 SO CP MUFG UNION BA 62478XAR1 12/24/2015 .280000 1,200,000.00 1,199,696.00 74.67 0.00 01/25/2016 .280073 1,199,701.33 99.974667 SUNGARD -80.00 82864 SO CP MUFG UNION BA 62478XAR1 12/24/2015 .280000 4,300,000.00 4,298,910.67 267.56 0.00 01/25/2016 .280069 4,298,929.78 99.974667 SUNGARD -286.67 82865 SO CP MUFG UNION BA 62478XAR1 12/24/2015 .280000 7,300,000.00 7,298,150.67 454.22 0.00 01/25/2016 .280068 7,298,183.12 99.974667 SUNGARD -486.67

AvantGard APS2 Page 15 Inventory by Market Value Page 26 As Of Date: 12/31/2015

Inv Type: 72 NEGOTIABLE CERT OF DEPOSIT

82328 PW NCD UNION BANK O 62478TEC9 02/02/2015 .400000 500,000.00 500,100.51 1,850.00 100.51 02/02/2016 .400000 500,000.00 100.020102 SUNGARD 0.00 82562 PW YCD BNP PARIBAS 05572NYH3 05/20/2015 .730000 2,000,000.00 2,003,038.80 9,165.56 3,038.80 05/20/2016 .730000 2,000,000.00 100.151940 SUNGARD 0.00 82563 RM YCD BNP PARIBAS 05572NYL4 05/26/2015 .730000 1,007,000.00 1,008,595.22 4,492.34 1,595.22 05/26/2016 .730000 1,007,000.00 100.158414 SUNGARD 0.00 82576 CCCSIG YCD NORDEA B 65558LFA5 05/29/2015 1.150000 1,950,000.00 1,950,000.00 2,180.21 0.00 05/26/2017 1.150000 1,950,000.00 100.000000 BOOK 0.00 82614 PW NCD UNION BANK O 62478THN2 07/09/2015 .390000 4,300,000.00 4,300,150.25 8,198.67 150.25 01/06/2016 .390000 4,300,000.00 100.003494 SUNGARD 0.00 82615 PW NCD UNION BANK O 62478THN2 07/09/2015 .390000 1,100,000.00 1,100,038.44 2,097.33 38.44 01/06/2016 .390000 1,100,000.00 100.003494 SUNGARD 0.00 82616 PW NCD UNION BANK O 62478THN2 07/09/2015 .390000 2,000,000.00 2,000,069.88 3,813.33 69.88 01/06/2016 .390000 2,000,000.00 100.003494 SUNGARD 0.00 82655 YCD ABBEY NATIONAL 00279H6T8 08/05/2015 .450000 25,000,000.00 25,001,498.09 46,562.50 1,498.09 01/08/2016 .450000 25,000,000.00 100.005992 SUNGARD 0.00 82656 YCD CREDIT AGRICOLE 22533MX97 08/05/2015 .390000 25,000,000.00 25,003,640.37 40,354.17 3,640.37 01/25/2016 .390000 25,000,000.00 100.014561 SUNGARD 0.00 82701 YCD NORDEA BANK FIN 65558LHY1 09/25/2015 .250000 25,000,000.00 25,000,388.20 17,013.89 388.20 01/08/2016 .250000 25,000,000.00 100.001553 SUNGARD 0.00

AvantGard APS2 Page 16 Inventory by Market Value Page 27 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 82702 YCD BNP PARIBAS 05572NC79 09/25/2015 .320000 25,000,000.00 25,001,456.61 21,777.78 1,456.61 01/15/2016 .320000 25,000,000.00 100.005826 SUNGARD 0.00 82703 YCD CREDIT AGRICOLE 22533M4R9 09/28/2015 .320000 30,000,000.00 30,000,466.16 25,333.33 466.16 01/04/2016 .320000 30,000,000.00 100.001554 SUNGARD 0.00 82705 YCD STANDARD CHARTE 85325TDV4 09/30/2015 .400000 30,000,000.00 30,010,438.29 31,000.00 10,438.29 02/26/2016 .400000 30,000,000.00 100.034794 SUNGARD 0.00 82706 YCD CREDIT AGRICOLE 22533M4V0 09/30/2015 .300000 30,000,000.00 30,002,696.53 23,250.00 2,696.53 01/27/2016 .300000 30,000,000.00 100.008988 SUNGARD 0.00 82720 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 5,190,000.00 5,190,063.36 3,637.33 63.36 01/04/2016 .290000 5,190,000.00 100.001221 SUNGARD 0.00 82721 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 1,090,000.00 1,090,013.31 763.91 13.31 01/04/2016 .290000 1,090,000.00 100.001221 SUNGARD 0.00 82722 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 2,100,000.00 2,100,025.64 1,471.75 25.64 01/04/2016 .290000 2,100,000.00 100.001221 SUNGARD 0.00 82723 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 3,000,000.00 3,000,036.62 2,102.50 36.62 01/04/2016 .290000 3,000,000.00 100.001221 SUNGARD 0.00 82724 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 3,100,000.00 3,100,037.85 2,172.58 37.85 01/04/2016 .290000 3,100,000.00 100.001221 SUNGARD 0.00 82725 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 4,000,000.00 4,000,048.83 2,803.33 48.83 01/04/2016 .290000 4,000,000.00 100.001221 SUNGARD 0.00 82726 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 875,000.00 875,010.68 613.23 10.68 01/04/2016 .290000 875,000.00 100.001221 SUNGARD 0.00 82727 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 21,500,000.00 21,500,262.47 15,067.92 262.47 01/04/2016 .290000 21,500,000.00 100.001221 SUNGARD 0.00 82728 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 5,600,000.00 5,600,068.37 3,924.67 68.37 01/04/2016 .290000 5,600,000.00 100.001221 SUNGARD 0.00 82729 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 450,000.00 450,005.49 315.38 5.49 01/04/2016 .290000 450,000.00 100.001221 SUNGARD 0.00 82730 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 1,750,000.00 1,750,021.36 1,226.46 21.36 01/04/2016 .290000 1,750,000.00 100.001221 SUNGARD 0.00 82731 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 550,000.00 550,006.71 385.46 6.71 01/04/2016 .290000 550,000.00 100.001221 SUNGARD 0.00 82732 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 3,500,000.00 3,500,042.73 2,452.92 42.73 01/04/2016 .290000 3,500,000.00 100.001221 SUNGARD 0.00 82733 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 5,700,000.00 5,700,069.59 3,994.75 69.59 01/04/2016 .290000 5,700,000.00 100.001221 SUNGARD 0.00 82734 PW YCD ABBEY NATION 00279JAK8 10/06/2015 .290000 4,500,000.00 4,500,054.94 3,153.75 54.94

AvantGard APS2 Page 17 Inventory by Market Value Page 28 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 01/04/2016 .290000 4,500,000.00 100.001221 SUNGARD 0.00 82744 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 1,000,000.00 1,000,055.85 800.00 55.85 04/11/2016 .360000 1,000,000.00 100.005585 SUNGARD 0.00 82745 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 5,100,000.00 5,100,284.84 4,080.00 284.84 04/11/2016 .360000 5,100,000.00 100.005585 SUNGARD 0.00 82746 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 400,000.00 400,022.34 320.00 22.34 04/11/2016 .360000 400,000.00 100.005585 SUNGARD 0.00 82747 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 100,000.00 100,005.59 80.00 5.59 04/11/2016 .360000 100,000.00 100.005585 SUNGARD 0.00 82748 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 1,000,000.00 1,000,055.85 800.00 55.85 04/11/2016 .360000 1,000,000.00 100.005585 SUNGARD 0.00 82749 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 1,000,000.00 1,000,055.85 800.00 55.85 04/11/2016 .360000 1,000,000.00 100.005585 SUNGARD 0.00 82750 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 500,000.00 500,027.93 400.00 27.93 04/11/2016 .360000 500,000.00 100.005585 SUNGARD 0.00 82751 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 3,000,000.00 3,000,167.56 2,400.00 167.56 04/11/2016 .360000 3,000,000.00 100.005585 SUNGARD 0.00 82752 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 500,000.00 500,027.93 400.00 27.93 04/11/2016 .360000 500,000.00 100.005585 SUNGARD 0.00 82753 PW NCD UNION BANK O 62478TKL2 10/13/2015 .360000 400,000.00 400,022.34 320.00 22.34 04/11/2016 .360000 400,000.00 100.005585 SUNGARD 0.00 82756 NCD UNION BANK OF C 62478TKT5 10/20/2015 .260000 20,000,000.00 20,001,864.09 10,544.44 1,864.09 02/11/2016 .260000 20,000,000.00 100.009320 SUNGARD 0.00 82757 YCD SOCIETE GENERAL 83369TH26 10/20/2015 .340000 25,000,000.00 25,006,104.76 17,236.11 6,104.76 02/24/2016 .340000 25,000,000.00 100.024419 SUNGARD 0.00 82759 NCD UNION BANK OF C 62478TKW8 10/21/2015 .250000 30,000,000.00 30,001,864.00 15,000.00 1,864.00 02/01/2016 .250000 30,000,000.00 100.006213 SUNGARD 0.00 82798 CCCSIG YCD SKANDINA 83050FBG5 11/17/2015 1.480000 2,175,000.00 2,175,000.00 4,023.75 0.00 11/16/2017 1.480000 2,175,000.00 100.000000 BOOK 0.00 82812 NCD BANK OF AMERICA 06052TRA0 11/25/2015 .390000 25,000,000.00 25,003,667.12 10,020.83 3,667.12 04/15/2016 .390000 25,000,000.00 100.014668 SUNGARD 0.00 82821 YCD BNP PARIBAS 05572NG34 12/04/2015 .550000 30,000,000.00 30,018,344.54 12,833.33 18,344.54 04/14/2016 .550000 30,000,000.00 100.061148 SUNGARD 0.00 82822 YCD NORDEA BANK FIN 65558LLN0 12/04/2015 .510000 25,000,000.00 25,012,374.08 9,916.67 12,374.08 04/14/2016 .510000 25,000,000.00 100.049496 SUNGARD 0.00 82827 NCD WELLS FARGO BAN 94988EMK1 12/08/2015 .700000 25,000,000.00 25,039,673.63 11,666.67 39,673.63 06/07/2016 .700000 25,000,000.00 100.158695 SUNGARD 0.00

AvantGard APS2 Page 18 Inventory by Market Value Page 29 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 82830 YCD CREDIT SUISSE 22549VLL5 12/09/2015 .700000 25,000,000.00 25,034,191.92 11,180.56 34,191.92 05/16/2016 .700000 25,000,000.00 100.136768 SUNGARD 0.00 82833 YCD ROYAL BANK OF C 78009NXU5 12/10/2015 .680000 25,000,000.00 25,034,646.46 10,388.89 34,646.46 05/26/2016 .680000 25,000,000.00 100.138586 SUNGARD 0.00 82841 YCD BNP PARIBAS 05572NG67 12/17/2015 .830000 30,000,000.00 30,073,358.83 10,375.00 73,358.83 06/28/2016 .830000 30,000,000.00 100.244529 SUNGARD 0.00 82842 YCD ROYAL BANK OF C 78009NYK6 12/17/2015 .805000 25,000,000.00 25,056,404.26 8,385.42 56,404.26 06/23/2016 .805000 25,000,000.00 100.225617 SUNGARD 0.00 82843 YCD CREDIT AGRICOLE 22534HBK6 12/17/2015 .790000 25,000,000.00 25,055,830.13 8,229.17 55,830.13 06/27/2016 .790000 25,000,000.00 100.223321 SUNGARD 0.00 82845 YCD STANDARD CHARTE 85325TEV3 12/18/2015 .820000 30,000,000.00 30,036,267.61 9,566.67 36,267.61 06/30/2016 .820000 30,000,000.00 100.120892 SUNGARD 0.00 82852 CCCSD NCD MUFG UNIO 62478TMC0 12/21/2015 .640000 5,000,000.00 5,001,691.52 977.78 1,691.52 07/22/2016 .640000 5,000,000.00 100.033830 SUNGARD 0.00 82854 PW NCD UNION BANK O 62478TMF3 12/22/2015 .820000 500,000.00 500,590.19 113.89 590.19 12/22/2016 .820000 500,000.00 100.118038 SUNGARD 0.00 82855 YCD STANDARD CHARTE 85325TEY7 12/23/2015 .870000 25,000,000.00 25,040,932.91 5,437.50 40,932.91 07/22/2016 .870000 25,000,000.00 100.163732 SUNGARD 0.00 82856 YCD NORDEA BANK FIN 65558LMA7 12/23/2015 .840000 25,000,000.00 25,036,697.38 5,250.00 36,697.38 07/22/2016 .840000 25,000,000.00 100.146790 SUNGARD 0.00 82857 YCD SOCIETE GENERAL 83369TR66 12/23/2015 .850000 25,000,000.00 25,035,501.87 5,312.50 35,501.87 07/08/2016 .850000 25,000,000.00 100.142007 SUNGARD 0.00 82858 YCD RABOBANK NEDERL 21685VKX6 12/23/2015 .830000 25,000,000.00 25,035,285.54 5,187.50 35,285.54 07/22/2016 .830000 25,000,000.00 100.141142 SUNGARD 0.00 82859 YCD ABBEY NATL TREA 00279JBF8 12/23/2015 .800000 20,000,000.00 20,023,504.75 4,000.00 23,504.75 07/11/2016 .800000 20,000,000.00 100.117524 SUNGARD 0.00 82860 YCD NORDEA BANK FIN 65558LMA7 12/23/2015 .840000 25,000,000.00 25,036,697.38 5,250.00 36,697.38 07/22/2016 .840000 25,000,000.00 100.146790 SUNGARD 0.00 82867 HR YCD BNP PARIBAS 05572NH33 12/31/2015 .480000 3,001,000.00 3,002,500.05 40.01 1,500.05 02/29/2016 .480000 3,001,000.00 100.049985 SUNGARD 0.00 82868 HR YCD BNP PARIBAS 05572NH33 12/31/2015 .480000 2,644,000.00 2,645,321.60 35.25 1,321.60 02/29/2016 .480000 2,644,000.00 100.049985 SUNGARD 0.00 82869 HR YCD BNP PARIBAS 05572NH33 12/31/2015 .480000 5,801,000.00 5,803,899.63 77.35 2,899.63 02/29/2016 .480000 5,801,000.00 100.049985 SUNGARD 0.00 Subtotal .551735 782,883,000.00 783,501,285.63 472,624.34 618,285.63 .551735 782,883,000.00 100.078975 0.00

AvantGard APS2 Page 19 Inventory by Market Value Page 30 As Of Date: 12/31/2015

Inv Type: 73 CORP NOTE FLTG RT ACT- 360

81269 CORP GENERAL ELEC C 36962GU51 03/08/2013 .518000 10,000,000.00 10,000,000.00 12,230.78 47,550.00 01/08/2016 2.390017 9,952,450.00 100.000000 SUNGARD 0.00 81794 CCCSIG CORP BERKSHI 084664CA7 01/10/2014 .470600 500,000.00 499,780.00 522.89 0.00 01/10/2017 .470600 500,000.00 99.956000 SUNGARD -220.00 Subtotal .515733 10,500,000.00 10,499,780.00 12,753.67 47,550.00 2.298200 10,452,450.00 99.997905 -220.00

Inv Type: 74 CERT OF DEPOSIT MEDIUM TERM

82130 CCCSIG YCD TORONTO 89112UXV8 09/29/2014 .900000 2,025,000.00 2,014,290.00 4,758.75 0.00 09/29/2016 .900000 2,025,000.00 99.471111 SUNGARD -10,710.00 82760 CCCSIG MTN BMO HARR 05574BFW5 10/23/2015 1.000000 2,175,000.00 2,175,000.00 4,229.17 0.00 04/24/2017 1.000000 2,175,000.00 100.000000 BOOK 0.00 Subtotal .951786 4,200,000.00 4,189,290.00 8,987.92 0.00 .951786 4,200,000.00 99.745000 -10,710.00

Inv Type: 75 CORPORATE NOTES

80653 CCCCD CORP WALT DIS 25468PCS3 06/14/2012 1.125000 135,000.00 135,145.80 573.75 396.90 02/15/2017 1.165961 134,748.90 100.108000 SUNGARD 0.00 80654 CCCCD CORP WALT DIS 25468PCS3 06/14/2012 1.125000 240,000.00 240,259.20 1,020.00 1,118.40 02/15/2017 1.203989 239,140.80 100.108000 SUNGARD 0.00 81054 CCCCD CORP CHEVRON 166764AA8 12/05/2012 1.104000 105,000.00 104,277.60 83.72 0.00 12/05/2017 1.104000 105,000.00 99.312000 SUNGARD -722.40 81198 CORP GENERAL ELECTR 36962G6R0 02/04/2013 1.000000 5,000,000.00 5,000,050.00 24,027.78 50.00 01/08/2016 1.000000 5,000,000.00 100.001000 SUNGARD 0.00 81217 CCCCD CORP BERKSHIR 084670BH0 02/11/2013 1.550000 245,000.00 245,399.35 1,497.90 739.90 02/09/2018 1.579059 244,659.45 100.163000 SUNGARD 0.00 81413 CCCCD CORP APPLE IN 037833AJ9 05/03/2013 1.000000 175,000.00 173,579.00 281.94 0.00 05/03/2018 1.076001 174,354.25 99.188000 SUNGARD -775.25 81501 CORP GENERAL ELECTR 36962G6R0 06/18/2013 1.000000 5,000,000.00 5,000,050.00 24,027.78 3,700.00 01/08/2016 1.028965 4,996,350.00 100.001000 SUNGARD 0.00 81703 CORP TOYOTA MTR CRD 89233P6S0 11/15/2013 1.250000 5,000,000.00 4,985,300.00 14,930.56 40,800.00 10/05/2017 1.545080 4,944,500.00 99.706000 SUNGARD 0.00 81789 CORP MICROSOFT CORP 594918AV6 01/10/2014 1.625000 6,406,000.00 6,446,870.28 7,228.99 78,409.44

AvantGard APS2 Page 20 Inventory by Market Value Page 31 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 12/06/2018 1.750063 6,368,460.84 100.638000 SUNGARD 0.00 81813 CORP INTEL STRUCTUR 458140AL4 01/27/2014 1.350000 5,211,000.00 5,217,930.63 3,126.61 38,300.85 12/15/2017 1.510075 5,179,629.78 100.133000 SUNGARD 0.00 81899 CORP WELLS FARGO & 94974BFG0 04/07/2014 1.500000 5,000,000.00 4,978,700.00 34,375.00 18,800.00 01/16/2018 1.720116 4,959,900.00 99.574000 SUNGARD 0.00 81948 CCCSIG CORP WAL-MAR 931142DN0 04/22/2014 1.000000 370,000.00 370,270.10 719.44 325.60 04/21/2017 1.005095 369,944.50 100.073000 SUNGARD 0.00 81956 CCCSIG CORP TOYOTA 89233P6D3 04/28/2014 1.750000 975,000.00 981,279.00 1,848.44 0.00 05/22/2017 1.200940 991,068.00 100.644000 SUNGARD -9,789.00 81991 CCCSIG CORP APPLE I 037833AM2 05/06/2014 1.050000 1,500,000.00 1,500,885.00 2,406.25 1,680.00 05/05/2017 1.067075 1,499,205.00 100.059000 SUNGARD 0.00 82116 CCCSIG CORP WELLS F 94974BGB0 09/09/2014 1.400000 810,000.00 809,076.60 3,559.50 0.00 09/08/2017 1.433868 809,198.10 99.886000 SUNGARD -121.50 82197 CCCSIG CORP CHEVRON 166764AL4 11/18/2014 1.345000 350,000.00 348,897.50 601.51 0.00 11/15/2017 1.345000 350,000.00 99.685000 SUNGARD -1,102.50 82203 CCCSIG CORP JOHNSON 478160BL7 11/21/2014 1.125000 1,130,000.00 1,129,740.10 1,412.50 632.80 11/21/2017 1.151867 1,129,107.30 99.977000 SUNGARD 0.00 82258 CORP CHEVRON CORP 166764AA8 12/15/2014 1.104000 10,000,000.00 9,931,200.00 7,973.33 0.00 12/05/2017 1.250044 9,957,510.00 99.312000 SUNGARD -26,310.00 82290 CCCSIG CORP TOYOTA 89236TCA1 01/12/2015 1.450000 220,000.00 219,582.00 1,497.53 0.00 01/12/2018 1.496870 219,698.60 99.810000 SUNGARD -116.60 82346 CCCCD CORP MERCK & 58933YAD7 01/23/2015 .700000 1,590,000.00 1,590,159.00 1,329.42 0.00 05/18/2016 .435141 1,595,533.20 100.010000 SUNGARD -5,374.20 82347 CCCCD CORP GECC 36962G6R0 01/23/2015 1.000000 1,590,000.00 1,590,015.90 7,640.83 0.00 01/08/2016 .475357 1,597,965.90 100.001000 SUNGARD -7,950.00 82348 CCCCD CORP JOHN DEE 24422ERF8 01/23/2015 1.850000 1,560,000.00 1,568,673.60 8,497.67 0.00 09/15/2016 .616979 1,591,418.40 100.556000 SUNGARD -22,744.80 82349 CCCCD CORP IBM CORP 459200GX3 01/23/2015 1.950000 1,565,000.00 1,574,358.70 13,478.56 0.00 07/22/2016 .490189 1,599,038.75 100.598000 SUNGARD -24,680.05 82350 CCCCD CORP EI DU PO 263534CD9 01/23/2015 1.950000 1,580,000.00 1,580,489.80 14,206.83 0.00 01/15/2016 .489343 1,602,483.40 100.031000 SUNGARD -21,993.60 82351 CCCCD CORP AMERICAN 0258M0DC0 01/23/2015 2.800000 1,525,000.00 1,544,428.50 12,098.33 0.00 09/19/2016 .840060 1,574,028.75 101.274000 SUNGARD -29,600.25 82352 CCCCD CORP WELLS FA 94974BFL9 01/23/2015 1.250000 1,590,000.00 1,592,512.20 8,888.55 0.00 07/20/2016 .787164 1,600,891.50 100.158000 SUNGARD -8,379.30 82353 CCCCD CORP US BANK 90331HMC4 01/23/2015 1.100000 1,585,000.00 1,582,717.60 7,313.01 0.00 01/30/2017 .828281 1,593,606.55 99.856000 SUNGARD -10,888.95

AvantGard APS2 Page 21 Inventory by Market Value Page 32 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 82364 CCCCD CORP GE CAPIT 36962G6R0 01/23/2015 1.000000 1,990,000.00 1,990,019.90 9,563.06 0.00 01/08/2016 .475357 1,999,969.90 100.001000 SUNGARD -9,950.00 82365 CCCCD CORP EI DU PO 263534CD9 01/23/2015 1.950000 1,975,000.00 1,975,612.25 17,758.54 0.00 01/15/2016 .489343 2,003,104.25 100.031000 SUNGARD -27,492.00 82366 CCCCD CORP WELLS FA 94974BFL9 01/23/2015 1.250000 1,985,000.00 1,988,136.30 11,096.70 0.00 07/20/2016 .787164 1,998,597.25 100.158000 SUNGARD -10,460.95 82367 CCCCD CORP IBM CORP 459200GX3 01/23/2015 1.950000 1,960,000.00 1,971,720.80 16,880.50 0.00 07/22/2016 .490189 2,002,630.00 100.598000 SUNGARD -30,909.20 82368 CCCCD CORP JOHN DEE 24422ERF8 01/23/2015 1.850000 1,950,000.00 1,960,842.00 10,622.08 0.00 09/15/2016 .616979 1,989,273.00 100.556000 SUNGARD -28,431.00 82369 CCCCD CORP MERCK & 58933YAD7 01/23/2015 .700000 1,990,000.00 1,990,199.00 1,663.86 0.00 05/18/2016 .435141 1,996,925.20 100.010000 SUNGARD -6,726.20 82370 CCCCD CORP AMERICAN 0258M0DC0 01/23/2015 2.800000 1,905,000.00 1,929,269.70 15,112.99 0.00 09/19/2016 .840060 1,966,245.75 101.274000 SUNGARD -36,976.05 82371 CCCCD CORP US BANK 90331HMC4 01/23/2015 1.100000 1,980,000.00 1,977,148.80 9,135.50 0.00 01/30/2017 .828281 1,990,751.40 99.856000 SUNGARD -13,602.60 82375 CCCSIG CORP IBM COR 459200HZ7 02/06/2015 1.125000 1,880,000.00 1,867,404.00 8,518.75 0.00 02/06/2018 1.228864 1,874,266.00 99.330000 SUNGARD -6,862.00 82376 CCCCD CORP IBM CORP 459200HZ7 02/06/2015 1.125000 160,000.00 158,928.00 725.00 0.00 02/06/2018 1.228864 159,512.00 99.330000 SUNGARD -584.00 82386 CORP IBM CORP 459200HZ7 02/11/2015 1.125000 5,000,000.00 4,966,500.00 22,656.25 0.00 02/06/2018 1.274939 4,978,100.00 99.330000 SUNGARD -11,600.00 82404 CCCSIG CORP CHEVRON 166764AV2 03/03/2015 1.365000 1,065,000.00 1,056,480.00 4,805.37 0.00 03/02/2018 1.365000 1,065,000.00 99.200000 SUNGARD -8,520.00 82416 CCCSIG CORP EXXON M 30231GAL6 03/06/2015 1.305000 1,565,000.00 1,562,511.65 6,524.10 0.00 03/06/2018 1.305000 1,565,000.00 99.841000 SUNGARD -2,488.35 82417 CCCCD CORP EXXON MO 30231GAL6 03/06/2015 1.305000 125,000.00 124,801.25 521.09 0.00 03/06/2018 1.305000 125,000.00 99.841000 SUNGARD -198.75 82418 CORP CHEVRON CORP 166764AV2 03/09/2015 1.365000 5,000,000.00 4,960,000.00 22,560.42 0.00 03/02/2018 1.372881 4,999,089.53 99.200000 SUNGARD -39,089.53 82420 CCCCD CORP AMERICAN 02665WAT8 03/13/2015 1.500000 130,000.00 129,047.10 585.00 0.00 03/13/2018 1.545883 129,825.80 99.267000 SUNGARD -778.70 82513 CCCCD CORP GENERAL 36962G4D3 04/15/2015 6.000000 100,000.00 113,284.00 2,400.00 0.00 08/07/2019 1.743001 117,603.00 113.284000 SUNGARD -4,319.00 82554 CORP APPLE INC 037833AJ9 05/12/2015 1.000000 10,000,000.00 9,918,800.00 16,111.11 0.00 05/03/2018 1.257267 9,925,100.00 99.188000 SUNGARD -6,300.00 82560 CCCSIG CORP APPLE I 037833BB5 05/13/2015 .900000 565,000.00 563,254.15 678.00 0.00

AvantGard APS2 Page 22 Inventory by Market Value Page 33 As Of Date: 12/31/2015

Date Basis: Settlement Run: 01/11/2016 09:57:34 AM Reporting Currency: Local Contra Costa County 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 05/12/2017 .934955 564,610.15 99.691000 SUNGARD -1,356.00 82574 CCCSIG CORP BK OF N 06406HDB2 05/29/2015 1.600000 1,600,000.00 1,594,016.00 2,773.33 0.00 05/22/2018 1.603145 1,599,856.00 99.626000 SUNGARD -5,840.00 82575 CCCCD CORP BK OF NE 06406HDB2 05/29/2015 1.600000 125,000.00 124,532.50 216.67 0.00 05/22/2018 1.603145 124,988.75 99.626000 SUNGARD -456.25 82581 CORP JP MORGAN CHAS 46625HJL5 06/02/2015 1.625000 5,000,000.00 4,962,900.00 10,381.94 0.00 05/15/2018 1.658000 4,995,250.00 99.258000 SUNGARD -32,350.00 82586 CCCSIG CORP CISCO S 17275RAU6 06/17/2015 1.650000 1,725,000.00 1,732,210.50 1,265.00 7,503.75 06/15/2018 1.655855 1,724,706.75 100.418000 SUNGARD 0.00 82587 CCCCD CORP CISCO SY 17275RAU6 06/17/2015 1.650000 130,000.00 130,543.40 95.33 565.50 06/15/2018 1.655855 129,977.90 100.418000 SUNGARD 0.00 82598 CCCSIG CORP WELLS F 94974BGB0 07/07/2015 1.400000 1,100,000.00 1,098,746.00 4,833.89 0.00 09/08/2017 1.252137 1,103,465.00 99.886000 SUNGARD -4,719.00 82620 CCCSIG CORP TOYOTA 89236TCP8 07/13/2015 1.550000 410,000.00 409,032.40 2,965.67 0.00 07/13/2018 1.579121 409,651.50 99.764000 SUNGARD -619.10 82621 CORP TOYOTA MOTOR C 89236TCP8 07/16/2015 1.550000 5,000,000.00 4,988,200.00 36,166.66 0.00 07/13/2018 1.567156 4,998,145.83 99.764000 SUNGARD -9,300.00 82634 CCCCD CORP PEPSICO 713448CW6 07/17/2015 1.125000 100,000.00 99,993.00 512.50 25.00 07/17/2017 1.139621 99,968.00 99.993000 SUNGARD 0.00 82658 CCCSIG CORP 3M COMP 88579YAP6 08/07/2015 1.375000 1,340,000.00 1,337,186.00 7,370.00 0.00 08/07/2018 1.435833 1,337,614.80 99.790000 SUNGARD -428.80 82693 CORP JP MORGAN CHAS 46623EKD0 09/15/2015 1.700000 5,000,000.00 4,975,750.00 28,333.34 0.00 03/01/2018 1.769114 4,995,005.56 99.515000 SUNGARD -15,950.00 82712 CCCCD CORP PFIZER I 717081DD2 09/29/2015 .900000 1,550,000.00 1,546,962.00 6,432.50 0.00 01/15/2017 .739645 1,556,060.50 99.804000 SUNGARD -6,231.00 82713 CCCCD CORP PFIZER I 717081DL4 09/29/2015 2.100000 1,960,000.00 1,977,404.80 5,259.33 0.00 05/15/2019 1.748923 1,984,068.80 100.888000 SUNGARD -6,664.00 82714 CCCCD CORP GOLDMAN 38147MAA3 09/29/2015 2.900000 1,510,000.00 1,539,520.50 19,705.50 0.00 07/19/2018 1.927831 1,558,393.82 101.955000 SUNGARD -10,358.60 82715 CCCCD CORP GOLDMAN 38147MAA3 09/29/2015 2.900000 1,930,000.00 1,967,731.50 25,186.50 0.00 07/19/2018 1.927831 1,991,854.36 101.955000 SUNGARD -13,239.80 82716 CCCCD CORP MICROSOF 594918AC8 09/29/2015 4.200000 1,400,000.00 1,514,142.00 4,900.00 0.00 06/01/2019 1.599996 1,529,290.00 108.153000 SUNGARD -15,148.00 82717 CCCCD CORP US BANCO 91159HHH6 09/29/2015 2.200000 1,950,000.00 1,964,293.50 7,865.00 0.00 04/25/2019 1.710407 1,982,935.50 100.733000 SUNGARD -18,642.00 82718 CCCCD CORP CISCO SY 17275RAE2 09/29/2015 4.950000 1,795,000.00 1,961,576.00 33,566.50 0.00 02/15/2019 1.739996 1,994,047.55 109.280000 SUNGARD -21,611.80

AvantGard APS2 Page 23 Inventory by Market Value Page 34 As Of Date: 12/31/2015

Inv Type: 79 YCD/NCD 30/360

82118 CCCSIG NCD US BANK 90333VPF1 09/11/2014 1.375000 2,000,000.00 1,996,780.00 8,402.78 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 2,150,000.00 5,127.14 0.00 04/06/2017 1.010000 2,150,000.00 100.000000 BOOK 0.00 82526 CCCSIG YCD RABOBANK 21684BXH2 04/27/2015 1.070000 2,000,000.00 2,000,000.00 4,161.10 0.00 04/21/2017 1.070000 2,000,000.00 100.000000 BOOK 0.00 82788 CCCSIG YCD BK NOVA 06417GAS7 11/09/2015 1.560000 2,450,000.00 2,450,000.00 5,520.67 0.00 11/06/2017 1.560000 2,450,000.00 100.000000 BOOK 0.00 Subtotal 1.265482 8,600,000.00 8,596,780.00 23,211.69 0.00 1.278261 8,596,780.00 99.962558 0.00

Inv Type: 80 YCD / NCD QTR FLTR

82800 CCCSIG CD HSBC BK U 40428AR41 11/18/2015 .954100 2,175,000.00 2,175,000.00 2,536.32 0.00 11/17/2017 .954100 2,175,000.00 100.000000 BOOK 0.00 82808 CCCSIG CD SVENSKA H 86958DH54 11/24/2015 .828000 1,340,000.00 1,340,000.00 1,171.16 0.00 08/24/2017 .828000 1,340,000.00 100.000000 BOOK 0.00 Subtotal .906028 3,515,000.00 3,515,000.00 3,707.48 0.00 .906028 3,515,000.00 100.000000 0.00

Inv Type: 99 MONEY MARKET ACCOUNTS

81524 AUHSD MM DREYFUS TA 26202K205 06/27/2013 .000000 537,226.12 537,226.12 0.00 0.00 01/01/2016 .000000 537,226.12 100.000000 BOOK 0.00 81525 AUHSD MM DREYFUS TA 26202K205 06/27/2013 .000000 28,092.20 28,092.20 0.00 0.00 01/01/2016 .000000 28,092.20 100.000000 BOOK 0.00 Subtotal .000000 565,318.32 565,318.32 0.00 0.00 .000000 565,318.32 100.000000 0.00

AvantGard APS2 Page 24 Inventory by Market Value Page 35 As Of Date: 12/31/2015

Inv Type: 1000 TD WITH CALC CODE OF CSC-00

82001 CD CCCCD BERTA KAMM 121101042 05/24/2014 .600000 3,335.77 3,335.77 32.63 0.00 05/24/2017 .600000 3,335.77 100.000000 BOOK 0.00 Subtotal .600000 3,335.77 3,335.77 32.63 0.00 .600000 3,335.77 100.000000 0.00

Grand Total Count 393 .727041 2,570,711,453.24 2,569,513,821.31 2,925,791.98 1,469,719.74 .695505 2,570,728,827.44 99.953412 -3,099,344.95

AvantGard APS2 Page 25 Page 36 SUNGARD.

l I ( • I" • ' I f)

January 20, 2016

Ms Belinda Zhu Assistant County Treasurer Contra Costa County 625 Court Street, Room 100 Martinez, CA 94533 Via email

Dear Ms. Zhu:

Per your request, I am confirming for you the source of the SunGard market pricing data for the year of 2015.

Monthly you receive three (3) pricing files from us, RAPID, PRICES and MARKET. The data within these three files is obtained from Interactive Data Corporation. The content of the PRICES file consists of prices for overnight repos, IDs, CDs, CPs, B/As and government discount issues other than Treasury Bills. The content of the RAPID file consists of prices for U.S. government issues (such as FFCBs and GNMAs) and Treasuries. The MARKET file consists of Corporate Bonds, Notes and Equity prices.

If you need further information, please do not hesitate to contact me at 818-936-2638.

Sincerely,

SunGard FIS Avantgard L::Q f ~ EricJ. Gr~ Senior Product Consultant SECTION III

APPENDIX

B. INVESTMENT PORTFOLIO DETAIL – MANAGED BY OUTSIDE CONTRACTED PARTIES

B.1. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF) CONTRA COSTA COUNTY Page 37 AS OF DECEMBER 31, 2015

CALIFORNIA STATE LOCAL STATE CONTROLLER ACCOUNT ESTIMATED AGENCY INVESTMENT ACCOUNTS ACCOUNT NUMBER BALANCE FAIR VALUE

ACALANES UNION HIGH SCHOOL 75-07-010 948,370.41 947,599.35

ANTIOCH UNIFIED SCHOOL DISTRICT 75-07-005 825,980.42 825,308.87

BRENTWOOD UNION SCHOOL DISTRICT 75-07-013 8,136,121.89 8,129,506.92

BYRON UNION SCHOOL DISTRICT 75-07-017 165,471.40 165,336.87

CANYON ELEMENTARY SCHOOL DISTRICT 75-07-018 192,374.05 192,217.64

CENTRAL CONTRA COSTA SANITARY DISTRICT 70-07-001 50,000,000.00 49,959,348.15

CONTRA COSTA COMMUNITY COLLEGE 75-07-001 615,575.23 615,074.74

CONTRA COSTA COUNTY 99-07-000 50,000,000.00 49,959,348.15

CONTRA COSTA COUNTY OFFICE OF EDUCATION 75-07-007 1,281,647.96 1,280,605.93

CONTRA COSTA COUNTY SCHOOL INSURANCE GROUP 35-07-001 2,231,151.44 2,229,337.43

CROCKETT COMMUNITY SERVICES DISTRICT 16-07-004 2,881,500.66 2,879,157.89

DELTA DIABLO SANITATION DISTRICT 70-07-003 72,570.12 72,511.12

EAST CONTRA COSTA REG FEE & FINANCING AUTH 40-07-006 1,009,046.88 1,008,226.49

JOHN SWETT UNIFIED SCHOOL DISTRICT 75-07-020 2,395.37 2,393.42

KENSINGTON FIRE PROTECTION DISTRICT 17-07-011 3,003,920.70 3,001,478.40

KENSINGTON POLICE PROTECTION & COMMUNITY 16-07-003 145,491.91 145,373.62 SERVICES DISTRICT

LAFAYETTE SCHOOL DISTRICT 75-07-012 5,283,825.43 5,279,529.48

MARTINEZ UNIFIED SCHOOL DISTRICT 75-07-011 3,819,575.40 3,816,469.94

MORAGA ORINDA FIRE DISTRICT 17-07-003 15,061.82 15,049.57

MT DIABLO UNIFIED SCHOOL DISTRICT 75-07-008 14,636,510.59 14,624,610.57

MT VIEW SANITARY DISTRICT 70-07-008 7,194,141.81 7,188,292.71

OAKLEY UNION SCHOOL DISTRICT 75-07-009 247,152.48 246,951.54

ORINDA UNION SCHOOL DISTRICT 75-07-015 7,405,146.62 7,399,125.96

PITTSBURG UNIFIED SCHOOL DISTRICT 75-07-002 33,856,582.96 33,829,056.31

RECLAMATION DISTRICT 800 60-07-003 5,407,998.94 5,403,602.04

REDEVELOPMENT AGENCY 65-07-015 6,982.65 6,976.97

RODEO -HERCULES FIRE PROTECTION DISTRICT 17-07-001 105,813.05 105,727.02

SAN RAMON VALLEY UNIFIED SCHOOL DISTRICT 75-07-004 239,479.92 239,285.21

WALNUT CREEK SCHOOL DISTRICT 75-07-003 0.00 0.00

WEST CONTRA COSTA UNIFIED SCHOOL DISTRICT 75-07-014 9,991,756.03 9,983,632.36

TOTAL 209,721,646.14 209,551,134.68 SECTION III

APPENDIX

B. INVESTMENT PORTFOLIO DETAIL – MANAGED BY OUTSIDE CONTRACTED PARTIES

B.2. ASSET MANAGEMENT FUNDS

a. WELLS CAPITAL MANAGEMENT b. CalTRUST Page 38

Wells Capital Management GAAP WC-Contra Costa County (19529) Quarter End (Q4 Y2015) 10/01/2015 - 12/31/2015 Dated: 01/11/2016 Locked Down Page 39

Table of Contents Dated: 01/11/2016

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)) 21 MMF Transaction Detail (WC-Contra Costa County (19529)) 25 Roll Forward (WC-Contra Costa County (19529)) 27 Shock Analysis (WC-Contra Costa County (19529)) 31 Page 40

Risk Summary WC-Contra Costa County (19529) 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Balance Sheet Cash and Fixed Income Summary Issuer Concentration

Risk Metric Value Issuer Concentration % of Base Market Value + Accrued Book Value + Accrued 44,434,187.37 Cash 215.73 Wells Fargo Funds Trust 3.153% Net Unrealized Gain/Loss -52,374.67 MMFund 1,399,428.32 Orange, County of 1.785% Market Value + Accrued 44,381,812.71 Fixed Income 42,982,168.66 Duration 0.423 International Bank for Reconstruction & Development 6.601% Convexity 0.00 Government of the United States 21.49% WAL 0.594 Federal National Mortgage Association 2.275% Years to Final Maturity 0.759 Federal Home Loan Banks Office of Finance 14.658% Years to Effective Maturity 0.594 Federal Farm Credit Banks Funding Corporation 4.51% Yield 0.817 Other 45.529% Book Yield 0.575 Avg Credit Rating AA+/Aa1/AA+

--- 100.00%

Asset Class Security Type Market Sector

1 Page 41

Risk Summary WC-Contra Costa County (19529) 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Credit Rating Credit Duration Heat Map

Rating 0 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5 - 7 7 - 10 10 - 15 15 - 30 AAA 60.883% 5.109% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% AA 17.126% 1.24% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% A 15.642% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% BBB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% BB 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% B 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CCC 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CC 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% C 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Time To Maturity Duration

2 Page 42

Risk Summary WC-Contra Costa County (19529) 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Base Exposure - Industry Sector Base Exposure - Industry Group Base Exposure - Industry Subgroup

MMF Asset Allocation Currency Country

3 Page 43

Performance Summary Gross of Fees WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Period Period Begin Period End Total Return Index Total Return Excess Total Return Month to Date 12/01/2015 12/31/2015 -0.007% 0.043% -0.049% Quarter to Date 10/01/2015 12/31/2015 0.021% 0.003% 0.018% Year to Date 01/01/2015 12/31/2015 0.427% 0.221% 0.206% Prior Month 11/01/2015 11/30/2015 -0.005% -0.006% 0.001% Prior Quarter 07/01/2015 09/30/2015 0.108% 0.106% 0.001% Prior Year 01/01/2014 12/31/2014 0.319% 0.12% 0.199% Trailing Month 12/01/2015 12/31/2015 -0.007% 0.043% -0.049% Trailing Quarter 10/01/2015 12/31/2015 0.021% 0.003% 0.018% Trailing Year 01/01/2015 12/31/2015 0.427% 0.221% 0.206%

Account Index Index Start Date Index End Date WC-Contra Costa County ML 6 Month T-Bill 01/31/1980 11/30/2004 WC-Contra Costa County BofA Merrill Lynch 6 Month Treasury Bill Index (G0O2) 12/01/2004 ---

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:

4 Page 44

Performance Summary Gross of Fees WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

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, No Tax Adjustment, Gross Up Method 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, No Tax Adjustment, Gross Up Method

Reported Index Return is always Total Return.

5 Page 45

Performance Summary Net of Fees WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Period Period Begin Period End Total Return Index Total Return Excess Total Return Month to Date 12/01/2015 12/31/2015 -0.016% 0.043% -0.059% Quarter to Date 10/01/2015 12/31/2015 -0.007% 0.003% -0.01% Year to Date 01/01/2015 12/31/2015 0.313% 0.221% 0.092% Prior Month 11/01/2015 11/30/2015 -0.014% -0.006% -0.008% Prior Quarter 07/01/2015 09/30/2015 0.094% 0.106% -0.013% Prior Year 01/01/2014 12/31/2014 0.203% 0.12% 0.083% Trailing Month 12/01/2015 12/31/2015 -0.016% 0.043% -0.059% Trailing Quarter 10/01/2015 12/31/2015 -0.007% 0.003% -0.01% Trailing Year 01/01/2015 12/31/2015 0.313% 0.221% 0.092%

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:

6 Page 46

Performance Summary Net of Fees WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Reported Index Return is always Total Return.

7 Page 47

GAAP Financials WC-Contra Costa County (19529) 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Balance Sheet WC-Contra Costa County As of: 09/30/2015 12/31/2015 Book Value 44,295,291.27 44,321,585.83 Accrued Balance 91,003.06 112,601.55 Book Value + Accrued 44,386,294.32 44,434,187.37 Net Unrealized Gain/Loss -1,361.39 -52,374.67 Market Value + Accrued 44,384,932.93 44,381,812.71

Income Statement WC-Contra Costa County Begin Date 10/01/2015 End Date 12/31/2015 Net Amortization/Accretion Income -43,826.70 Interest Income 103,721.99 Dividend Income 0.00 Misc Income 0.00 Income Subtotal 103,721.99 Net Realized Gain/Loss 486.48 Impairment Loss 0.00 Net Gain/Loss 486.48 Expense -12,488.72 Net Income 47,893.05

Transfers In/Out 0.00 Change in Unrealized Gain/Loss -51,013.28

Statement of Cash Flows WC-Contra Costa County Begin Date 10/01/2015 End Date 12/31/2015 Net Income 47,893.05 Amortization/Accretion on MS 43,972.92 Change in Accrued on MS -15,648.96 Net Gain/Loss on MS -486.48 Change in Unrealized G/L on CE -75.29 Subtotal 27,762.19 Purchases of MS -7,926,702.19 Purchased Accrued of MS -6,404.53 Sales of MS 3,012,312.98 Sold Accrued of MS 455.00 Maturities of MS 4,255,000.00 Net Purchases/Sales -665,338.74 Transfers of Cash & CE 0.00 Total Change in Cash & CE -589,683.49 Beginning Cash & CE 1,989,327.55 Ending Cash & CE 1,399,644.05

8 Page 48

Income Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Base Current Units Description Coupon Final Maturity Effective Transfers In/Out Net Realized Net Amortization/ Interest/Dividend Base Base Net Income Settle Date Maturity Gain/Loss Accretion Income Income Expense 02665WAY7 500,000.00 AMERICAN HONDA FINANCE CORP 1.02 09/20/2017 09/20/2017 0.00 0.00 0.00 1,043.48 0.00 1,043.48 09/24/2015 03255LGX1 750,000.00 ANAHEIM CALIF PUB FING AUTH LEASE 1.00 05/01/2016 05/01/2016 0.00 0.00 0.00 1,875.00 0.00 1,875.00 11/14/2014 REV 06050TLU4 500,000.00 BANK OF AMERICA NA 0.832 02/14/2017 02/14/2017 0.00 0.00 0.00 1,029.19 0.00 1,029.19 02/14/2014 06050TMB5 250,000.00 BANK OF AMERICA NA 0.902 06/05/2017 06/05/2017 0.00 0.00 0.00 520.44 0.00 520.44 06/05/2015 06406HBX6 750,000.00 BANK OF NEW YORK MELLON CORP 2.30 07/28/2016 07/28/2016 0.00 0.00 -3,113.72 4,312.50 0.00 1,198.78 01/21/2015 05531FAG8 750,000.00 BB&T CORP 3.20 03/15/2016 02/15/2016 0.00 0.00 -4,751.39 6,000.00 0.00 1,248.61 04/06/2015 084664CD1 750,000.00 BERKSHIRE HATHAWAY FINANCE CORP 0.621 01/12/2018 01/12/2018 0.00 0.00 0.00 1,180.84 0.00 1,180.84 01/15/2015 097023BC8 0.00 BOEING CO 3.75 11/20/2016 11/20/2016 0.00 0.00 -3,005.85 3,906.25 0.00 900.40 01/26/2015 097023BC8 750,000.00 BOEING CO 3.75 11/20/2016 11/20/2016 0.00 0.00 -2,416.47 3,125.00 0.00 708.53 01/26/2015 CCYUSD -9.65 Cash 0.00 12/31/2015 12/31/2015 0.00 0.00 0.00 0.00 -12,488.72 -12,488.72 --- 14912L4X6 775,000.00 CATERPILLAR FINANCIAL SERVICES 2.05 08/01/2016 08/01/2016 0.00 0.00 -2,727.56 3,971.88 0.00 1,244.31 11/04/2014 CORP 161571GJ7 775,000.00 CHAIT 2014-A1 A1 1.15 01/15/2019 01/14/2017 0.00 0.00 -252.14 2,228.13 0.00 1,975.99 08/07/2015 17275RAY8 750,000.00 CISCO SYSTEMS INC 0.822 06/15/2018 06/15/2018 0.00 0.00 0.00 1,320.36 0.00 1,320.36 06/17/2015 191216BR0 300,000.00 COCA-COLA CO 0.875 10/27/2017 10/27/2017 0.00 0.00 11.92 466.67 0.00 478.58 10/27/2015 3133EDGC0 0.00 FEDERAL FARM CREDIT BANK 0.25 11/04/2015 11/04/2015 0.00 0.00 122.17 229.17 0.00 351.34 03/24/2014 3133EDXG2 0.00 FEDERAL FARM CREDIT BANK 0.67 10/14/2016 10/14/2016 0.00 0.00 -36.62 241.94 0.00 205.32 10/24/2014 3133EFBT3 1,000,000.00 FEDERAL FARM CREDIT BANKS FUNDING 0.42 09/01/2016 09/01/2016 0.00 0.00 50.27 1,050.00 0.00 1,100.27 09/01/2015 CORP 3133EDQW5 1,000,000.00 FEDERAL FARM CREDIT BANKS FUNDING 0.29 01/21/2016 01/21/2016 0.00 0.00 225.72 725.00 0.00 950.72 08/01/2014 CORP 3130A4KE1 500,000.00 FEDERAL HOME LOAN BANKS 0.33 04/01/2016 04/01/2016 0.00 0.00 19.31 412.50 0.00 431.80 04/01/2015 3130A3J70 1,000,000.00 FEDERAL HOME LOAN BANKS 0.625 11/23/2016 11/23/2016 0.00 0.00 -145.84 642.36 0.00 496.52 05/18/2015 3130A3J70 0.00 FEDERAL HOME LOAN BANKS 0.625 11/23/2016 11/23/2016 0.00 0.00 -207.24 920.14 0.00 712.90 05/18/2015 3130A2T97 1,000,000.00 FEDERAL HOME LOAN BANKS 0.50 09/28/2016 09/28/2016 0.00 0.00 -241.38 1,055.56 0.00 814.18 10/15/2015 3130A2T97 500,000.00 FEDERAL HOME LOAN BANKS 0.50 09/28/2016 09/28/2016 0.00 0.00 -104.89 625.00 0.00 520.11 09/30/2015 313384SS9 1,000,000.00 FEDERAL HOME LOAN BANKS 0.00 02/05/2016 02/05/2016 0.00 0.00 638.89 0.00 0.00 638.89 02/06/2015 313384ZK8 500,000.00 FEDERAL HOME LOAN BANKS 0.00 07/15/2016 07/15/2016 0.00 0.00 76.25 0.00 0.00 76.25 12/23/2015 3130A3XU3 1,000,000.00 FEDERAL HOME LOAN BANKS 0.25 01/22/2016 01/22/2016 0.00 0.00 33.22 625.00 0.00 658.22 01/27/2015 313373SZ6 1,000,000.00 FEDERAL HOME LOAN BANKS 2.125 06/10/2016 06/10/2016 0.00 0.00 -4,062.30 5,312.50 0.00 1,250.20 07/16/2014 3136FPET0 1,000,000.00 FEDERAL NATIONAL MORTGAGE 2.00 03/10/2016 03/10/2016 0.00 0.00 -4,195.20 5,000.00 0.00 804.80 03/26/2015 ASSOCIATION 3133EDGM8 0.00 FFCB 0.350 03/10/16 CALd 0.35 03/10/2016 03/10/2016 0.00 354.06 44.57 175.00 0.00 573.62 03/14/2014 3133EDGM8 0.00 FFCB 0.350 03/10/16 CALd 0.35 03/10/2016 03/10/2016 0.00 132.43 16.67 35.00 0.00 184.10 03/24/2014 3137EACW7 235,000.00 FREDDIE MAC 2.00 08/25/2016 08/25/2016 0.00 0.00 -127.40 208.89 0.00 81.49 12/15/2015 31679KAB6 86,721.92 FTAT-142-A2A 0.45 04/17/2017 01/29/2016 0.00 0.00 5.16 178.90 0.00 184.06 06/11/2014 31680GAB2 500,000.00 FTAT-151-A2A 1.02 05/15/2018 10/10/2016 0.00 0.00 1.47 793.34 0.00 794.81 11/05/2015 36164EAB1 0.00 GEETT-151-A2 0.89 11/24/2017 06/06/2016 0.00 0.00 29.25 800.32 0.00 829.57 03/04/2015 36962G6Q2 750,000.00 GENERAL ELECTRIC CAPITAL CORP 0.918 01/08/2016 01/08/2016 0.00 0.00 -422.08 1,754.58 0.00 1,332.50 09/23/2013 41284AAB4 65,802.65 HARLY-141-A2A 0.49 04/15/2018 03/13/2016 0.00 -0.01 1.39 104.40 0.00 105.78 04/16/2014 41284BAB2 319,404.33 HARLY-151-A2A 0.80 01/15/2019 07/22/2016 0.00 0.00 0.66 714.21 0.00 714.88 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 437076BJ0 750,000.00 HOME DEPOT INC 0.882 09/15/2017 09/15/2017 0.00 0.00 0.00 1,417.37 0.00 1,417.37 09/15/2015 43814GAB6 0.00 HONDO-142-A2 0.39 09/19/2016 12/18/2015 0.00 0.00 0.48 21.11 0.00 21.59 05/21/2014 43814KAB7 252,965.61 HONDO-151-A2 0.70 06/15/2017 04/22/2016 0.00 -0.01 4.96 520.87 0.00 525.83 01/28/2015 459058DM2 1,000,000.00 INTERNATIONAL BANK FOR 0.50 05/16/2016 05/16/2016 0.00 0.00 5.27 388.89 0.00 394.16 12/03/2015 RECONSTRUCTION AND DEVELOP 459056HY6 771,000.00 INTERNATIONAL BANK FOR 0.00 02/15/2016 02/15/2016 0.00 0.00 867.76 0.00 0.00 867.76 04/30/2015 RECONSTRUCTION AND DEVELOP 459056HY6 163,000.00 INTERNATIONAL BANK FOR 0.00 02/15/2016 02/15/2016 0.00 0.00 206.96 0.00 0.00 206.96 05/20/2015 RECONSTRUCTION AND DEVELOP

9 Page 49

Income Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Base Current Units Description Coupon Final Maturity Effective Transfers In/Out Net Realized Net Amortization/ Interest/Dividend Base Base Net Income Settle Date Maturity Gain/Loss Accretion Income Income Expense 45905U7F5 1,000,000.00 INTERNATIONAL BK FOR RECON & DEV 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 MEDIUM TERM BK N 47787VAB7 0.00 JDOT-14-A2 0.45 09/15/2016 12/15/2015 0.00 -0.00 0.40 57.10 0.00 57.50 04/09/2014 47787VAB7 0.00 JDOT-14-A2 0.45 09/15/2016 12/15/2015 0.00 -0.00 0.00 0.00 0.00 -0.00 04/09/2014 47787WAB5 400,000.00 JDOT-15B-A2 0.98 06/15/2018 11/12/2016 0.00 0.00 2.14 980.01 0.00 982.14 09/09/2015 46625HHW3 750,000.00 JPMORGAN CHASE & CO 2.60 01/15/2016 01/15/2016 0.00 0.00 -3,267.41 4,875.00 0.00 1,607.59 01/21/2015 544587B72 490,000.00 LOS ANGELES CALIF MUN IMPT CORP 1.26 11/01/2016 11/01/2016 0.00 0.00 0.00 720.30 0.00 720.30 11/19/2015 LEASE REV 5446462Q4 400,000.00 LOS ANGELES CALIF UNI SCH DIST 0.486 01/01/2016 01/01/2016 0.00 0.00 0.00 486.00 0.00 486.00 08/19/2014 58768EAC3 0.00 MBALT 2014-A A2A 0.48 06/15/2016 10/15/2015 0.00 -0.00 0.01 2.92 0.00 2.92 04/09/2014 58772PAB4 650,000.00 MBART-151-A2A 0.82 06/15/2018 09/11/2016 0.00 0.00 41.87 340.53 0.00 382.39 12/08/2015 605581FW2 0.00 MISSISSIPPI ST 0.64 10/01/2016 10/01/2016 0.00 0.00 0.00 5.33 0.00 5.33 02/18/2015 605581FW2 300,000.00 MISSISSIPPI ST 0.64 10/01/2016 10/01/2016 0.00 0.00 0.00 474.67 0.00 474.67 02/18/2015 65477WAB2 396,490.98 NART-14B-A2 0.60 06/15/2017 03/23/2016 0.00 0.01 7.94 742.06 0.00 750.00 12/10/2014 677520FR4 0.00 OH ST-TXB-DEV ASST-A 5.39 10/01/2015 10/01/2015 0.00 0.00 0.00 0.00 0.00 0.00 07/11/2014 68428LDH4 300,000.00 ORANGE CNTY CALIF PENSION OBLIG 0.68 02/01/2016 02/01/2016 0.00 0.00 0.00 510.00 0.00 510.00 02/27/2015 68428LDH4 490,000.00 ORANGE CNTY CALIF PENSION OBLIG 0.68 02/01/2016 02/01/2016 0.00 0.00 0.00 833.00 0.00 833.00 01/13/2015 69371RK96 0.00 PACCAR FINANCIAL CORP 0.70 11/16/2015 11/16/2015 0.00 0.00 -62.39 179.38 0.00 116.99 12/23/2014 69371RK96 0.00 PACCAR FINANCIAL CORP 0.70 11/16/2015 11/16/2015 0.00 0.00 -183.60 437.50 0.00 253.90 04/02/2015 70659PAE1 0.00 PENAR 2013-1A A1 0.589 11/18/2017 11/18/2015 0.00 0.00 0.00 592.77 0.00 592.77 11/21/2013 69349LAH1 750,000.00 PNC BANK,NA 0.80 01/28/2016 01/28/2016 0.00 0.00 -649.09 1,500.00 0.00 850.91 04/30/2015 74256LAC3 0.00 PRINCIPAL LIFE GLOBAL FUNDING II 1.00 12/11/2015 12/11/2015 0.00 0.00 -273.80 486.11 0.00 212.31 06/30/2014 CCYUSD 225.38 Receivable 0.00 12/31/2015 12/31/2015 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 AUTH 1.00 09/01/2016 09/01/2016 0.00 0.00 93.10 312.50 0.00 405.60 03/26/2015 TAX ALLOC REV 857477AH6 285,000.00 STATE STREET CORP 2.875 03/07/2016 03/07/2016 0.00 0.00 -1,614.40 2,048.44 0.00 434.03 03/23/2015 857477AH6 300,000.00 STATE STREET CORP 2.875 03/07/2016 03/07/2016 0.00 0.00 -1,755.21 2,156.25 0.00 401.04 03/03/2015 89236WAB4 495,855.46 TART-15A-A2 0.71 07/17/2017 04/29/2016 0.00 -0.00 1.41 1,003.52 0.00 1,004.93 03/04/2015 89116EC19 750,000.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 03/01/2016 03/01/2016 0.00 0.00 245.42 0.00 0.00 245.42 12/01/2015 89116FYH7 0.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 11/17/2015 11/17/2015 0.00 0.00 146.22 0.00 0.00 146.22 08/28/2015 89116FYH7 0.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 11/17/2015 11/17/2015 0.00 0.00 137.08 0.00 0.00 137.08 04/14/2015 89233AHP7 500,000.00 Toyota Motor Credit Corporation 0.592 02/19/2016 02/19/2016 0.00 0.00 0.00 485.23 0.00 485.23 08/28/2015 912828B82 1,000,000.00 UNITED STATES TREASURY 0.25 02/29/2016 02/29/2016 0.00 0.00 475.12 631.87 0.00 1,106.99 03/20/2014 912828QX1 1,000,000.00 UNITED STATES TREASURY 1.50 07/31/2016 07/31/2016 0.00 0.00 -2,674.02 3,750.00 0.00 1,075.98 11/06/2014 912828SY7 500,000.00 UNITED STATES TREASURY 0.625 05/31/2017 05/31/2017 0.00 0.00 81.60 486.68 0.00 568.29 11/05/2015 912828VL1 1,000,000.00 UNITED STATES TREASURY 0.625 07/15/2016 07/15/2016 0.00 0.00 -674.92 1,562.50 0.00 887.58 06/01/2015 912828RF9 1,000,000.00 UNITED STATES TREASURY 1.00 08/31/2016 08/31/2016 0.00 0.00 -1,421.41 2,527.47 0.00 1,106.06 10/31/2014 912828RF9 1,000,000.00 UNITED STATES TREASURY 1.00 08/31/2016 08/31/2016 0.00 0.00 -423.27 1,016.48 0.00 593.21 11/25/2015 912828WQ9 1,000,000.00 UNITED STATES TREASURY 0.50 06/30/2016 06/30/2016 0.00 0.00 -103.38 1,250.15 0.00 1,146.77 07/01/2014 912828TS9 1,000,000.00 UNITED STATES TREASURY 0.625 09/30/2017 09/30/2017 0.00 0.00 11.14 1,144.12 0.00 1,155.26 10/26/2015 912828PS3 1,000,000.00 UNITED STATES TREASURY 2.00 01/31/2016 01/31/2016 0.00 0.00 -4,222.16 5,000.00 0.00 777.84 07/31/2014 912828PS3 1,000,000.00 UNITED STATES TREASURY 2.00 01/31/2016 01/31/2016 0.00 0.00 -4,183.63 5,000.00 0.00 816.37 12/31/2014 91412GUT0 250,000.00 UNIVERSITY CALIF REVS 0.634 05/15/2016 05/15/2016 0.00 0.00 0.00 396.25 0.00 396.25 04/10/2014 90331HMR1 450,000.00 US BANK NA 0.62 01/26/2018 01/26/2018 0.00 0.00 -115.70 697.70 0.00 582.00 05/12/2015 90331HMR1 300,000.00 US BANK NA 0.62 01/26/2018 01/26/2018 0.00 0.00 0.00 465.13 0.00 465.13 01/27/2015 90290XAB3 480,000.00 USAOT-151-A2 0.82 03/15/2018 08/13/2016 0.00 0.00 1.97 984.00 0.00 985.97 07/29/2015 928668AD4 500,000.00 VOLKSWAGEN GROUP OF AMERICA 0.598 05/23/2016 05/23/2016 0.00 0.00 0.00 728.90 0.00 728.90 05/23/2014 FINANCE LLC 949917397 1,399,428.32 WellsFargo:Htge MM;I 0.25 12/31/2015 12/31/2015 0.00 0.00 0.00 638.50 0.00 638.50 ------44,255,885.01 ------10/03/2016 08/04/2016 0.00 486.48 -43,826.70 103,721.99 -12,488.72 47,893.06 --- 10 Page 50

Income Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

* Weighted By: Ending Base Market Value + Accrued. * Holdings Displayed By: Lot.

11 Page 51

Balance Sheet Classification WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

CE Identifier Description Base Current Units Market Sector Rating Coupon Final Book Base Original Cost, Base Net Total Market Base Accrued Base Market Value Base Market Value + Maturity, Yield, Base Book Value Unrealized Gain/ Price Balance Accrued Effective Yield Loss Maturity 949917397 WellsFargo:Htge MM;I 1,399,428.32 Cash AAA 0.25 12/31/2015 0.00 1,399,428.32 0.00 1.00 0.00 1,399,428.32 1,399,428.32 12/31/2015 0.00 1,399,428.32 CCYUSD Receivable 225.38 Cash AAA 0.00 12/31/2015 0.00 225.38 0.00 1.00 0.00 225.38 225.38 12/31/2015 0.00 225.38 CCYUSD Cash -9.65 Cash AAA 0.00 12/31/2015 0.00 -9.65 0.00 1.00 0.00 -9.65 -9.65 12/31/2015 0.00 -9.65 ------1,399,644.05 Cash AAA --- 12/31/2015 0.00 1,399,644.05 0.00 1.00 0.00 1,399,644.05 1,399,644.05 12/31/2015 0.00 1,399,644.05

ST Identifier Description Base Current Units Market Sector Rating Coupon Final Book Base Original Cost, Base Net Total Market Base Accrued Base Market Value Base Market Value + Maturity, Yield, Base Book Value Unrealized Gain/ Price Balance Accrued Effective Yield Loss Maturity 912828B82 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.25 02/29/2016 0.44 996,328.13 226.70 99.992 844.78 999,922.00 1,000,766.78 02/29/2016 0.25 999,695.30 459058DM2 INTERNATIONAL BANK FOR 1,000,000.00 Government AAA 0.50 05/16/2016 0.507 999,970.00 201.73 100.018 625.00 1,000,177.00 1,000,802.00 RECONSTRUCTION AND DEVELOP 05/16/2016 0.428 999,975.27 3130A4KE1 FEDERAL HOME LOAN BANKS 500,000.00 Agency AAA 0.33 04/01/2016 0.345 499,923.19 -178.90 99.96 412.50 499,802.00 500,214.50 04/01/2016 0.466 499,980.90 3136FPET0 FEDERAL NATIONAL MORTGAGE 1,000,000.00 Agency AAA 2.00 03/10/2016 0.326 1,015,960.00 168.60 100.332 6,166.67 1,003,315.00 1,009,481.67 ASSOCIATION 03/10/2016 0.226 1,003,146.40 313384SS9 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency A-1+ 0.00 02/05/2016 0.254 997,472.22 21.06 99.978 0.00 999,778.00 999,778.00 02/05/2016 0.243 999,756.94 36962G6Q2 GENERAL ELECTRIC CAPITAL CORP 750,000.00 Financial AA+ 0.918 01/08/2016 0.712 753,840.00 -20.11 100.001 1,625.63 750,012.00 751,637.63 01/08/2016 0.948 750,032.11 459056HY6 INTERNATIONAL BANK FOR 163,000.00 Government AAA 0.00 02/15/2016 0.51 162,390.38 73.19 99.982 0.00 162,971.96 162,971.96 RECONSTRUCTION AND DEVELOP 02/15/2016 0.158 162,898.77 459056HY6 INTERNATIONAL BANK FOR 771,000.00 Government AAA 0.00 02/15/2016 0.451 768,255.24 291.84 99.982 0.00 770,867.39 770,867.39 RECONSTRUCTION AND DEVELOP 02/15/2016 0.158 770,575.55 605581FW2 MISSISSIPPI ST 300,000.00 Municipal AA+ 0.64 10/01/2016 0.64 300,000.00 -219.00 99.927 480.00 299,781.00 300,261.00 10/01/2016 0.767 300,000.00 45905U7F5 INTERNATIONAL BK FOR RECON & DEV 1,000,000.00 Government AAA 0.45 07/19/2016 0.45 1,000,000.00 -7,300.00 99.27 2,312.50 992,700.00 995,012.50 MEDIUM TERM BK N 07/19/2016 1.783 1,000,000.00 3133EDQW5 FEDERAL FARM CREDIT BANKS 1,000,000.00 Agency AAA 0.29 01/21/2016 0.38 998,680.00 60.07 100.001 1,288.89 1,000,011.00 1,001,299.89 FUNDING CORP 01/21/2016 0.278 999,950.93 69349LAH1 PNC BANK,NA 750,000.00 Financial A+ 0.80 01/28/2016 0.439 751,785.00 -12.75 99.998 2,550.00 749,987.25 752,537.25 01/28/2016 0.826 750,000.00 857477AH6 STATE STREET CORP 285,000.00 Financial AA- 2.875 03/07/2016 0.61 291,141.75 -154.10 100.352 2,594.69 286,004.05 288,598.74 03/07/2016 0.945 286,158.16 857477AH6 STATE STREET CORP 300,000.00 Financial AA- 2.875 03/07/2016 0.538 307,059.00 -202.27 100.352 2,731.25 301,056.90 303,788.15 03/07/2016 0.945 301,259.17 05531FAG8 BB&T CORP 750,000.00 Financial A+ 3.20 03/15/2016 0.662 766,320.00 -324.45 100.273 7,066.67 752,051.25 759,117.92 02/15/2016 0.973 752,375.70 06406HBX6 BANK OF NEW YORK MELLON CORP 750,000.00 Financial AA- 2.30 07/28/2016 0.644 768,750.00 -724.06 100.846 7,331.25 756,349.50 763,680.75 07/28/2016 0.831 757,073.55 313384ZK8 FEDERAL HOME LOAN BANKS 500,000.00 Agency A-1+ 0.00 07/15/2016 0.622 498,263.19 106.06 99.689 0.00 498,445.50 498,445.50 07/15/2016 0.588 498,339.44 3130A3XU3 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency A-1+ 0.25 01/22/2016 0.263 999,870.00 65.58 100.005 1,097.22 1,000,058.00 1,001,155.22 01/22/2016 0.144 999,992.42 3133EFBT3 FEDERAL FARM CREDIT BANKS 1,000,000.00 Agency AAA 0.42 09/01/2016 0.44 999,800.00 -932.67 99.893 1,400.00 998,934.00 1,000,334.00 FUNDING CORP 09/01/2016 0.572 999,866.67 68428LDH4 ORANGE CNTY CALIF PENSION OBLIG 300,000.00 Municipal AA 0.68 02/01/2016 0.68 300,000.00 45.00 100.015 838.67 300,045.00 300,883.67 02/01/2016 0.488 300,000.00

12 Page 52

Balance Sheet Classification WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Description Base Current Units Market Sector Rating Coupon Final Book Base Original Cost, Base Net Total Market Base Accrued Base Market Value Base Market Value + Maturity, Yield, Base Book Value Unrealized Gain/ Price Balance Accrued Effective Yield Loss Maturity 68428LDH4 ORANGE CNTY CALIF PENSION OBLIG 490,000.00 Municipal AA 0.68 02/01/2016 0.68 490,000.00 73.50 100.015 1,369.82 490,073.50 491,443.32 02/01/2016 0.488 490,000.00 03255LGX1 ANAHEIM CALIF PUB FING AUTH LEASE 750,000.00 Municipal AA- 1.00 05/01/2016 1.00 750,000.00 210.00 100.028 1,250.00 750,210.00 751,460.00 REV 05/01/2016 0.943 750,000.00 912828QX1 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.50 07/31/2016 0.434 1,018,398.44 -1,122.88 100.504 6,277.17 1,005,039.00 1,011,316.17 07/31/2016 0.618 1,006,161.88 4197915E4 HAWAII ST 750,000.00 Municipal AA 0.731 08/01/2016 0.731 750,000.00 345.00 100.046 2,284.38 750,345.00 752,629.38 08/01/2016 0.68 750,000.00 5446462Q4 LOS ANGELES CALIF UNI SCH DIST 400,000.00 Municipal AA 0.486 01/01/2016 0.486 400,000.00 0.00 100.00 972.00 400,000.00 400,972.00 01/01/2016 0.306 400,000.00 313373SZ6 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 2.125 06/10/2016 0.50 1,030,688.00 -657.02 100.645 1,239.58 1,006,452.00 1,007,691.58 06/10/2016 0.647 1,007,109.02 89233AHP7 Toyota Motor Credit Corporation 500,000.00 Industrial A-1+ 0.592 02/19/2016 0.592 500,000.00 -81.50 99.983 30.24 499,918.50 499,948.74 02/19/2016 0.704 500,000.00 3130A3J70 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 0.625 11/23/2016 0.484 1,002,130.00 -3,213.97 99.804 659.72 998,041.00 998,700.72 11/23/2016 0.822 1,001,254.97 91412GUT0 UNIVERSITY CALIF REVS 250,000.00 Municipal AA 0.634 05/15/2016 0.634 250,000.00 92.50 100.037 202.53 250,092.50 250,295.03 05/15/2016 0.562 250,000.00 097023BC8 BOEING CO 750,000.00 Industrial A 3.75 11/20/2016 0.849 789,135.00 -1,388.49 102.361 3,203.13 767,707.50 770,910.63 11/20/2016 1.008 769,095.99 89116EC19 Toronto Dominion Holdings (U.S.A.), Inc. 750,000.00 Financial A-1+ 0.00 03/01/2016 0.381 749,279.58 -89.25 99.925 0.00 749,435.75 749,435.75 03/01/2016 0.455 749,525.00 928668AD4 VOLKSWAGEN GROUP OF AMERICA 500,000.00 Industrial A- 0.598 05/23/2016 0.602 500,000.00 -3,543.50 99.291 323.70 496,456.50 496,780.20 FINANCE LLC 05/23/2016 2.706 500,000.00 912828VL1 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.625 07/15/2016 0.356 1,003,007.81 -1,359.88 100.008 2,887.23 1,000,078.00 1,002,965.23 07/15/2016 0.589 1,001,437.88 3137EACW7 FREDDIE MAC 235,000.00 Agency AAA 2.00 08/25/2016 0.827 236,903.50 115.18 100.805 1,645.00 236,891.28 238,536.28 08/25/2016 0.706 236,776.10 3130A2T97 FEDERAL HOME LOAN BANKS 1,000,000.00 Agency AAA 0.50 09/28/2016 0.386 1,001,080.00 -2,593.62 99.825 1,291.67 998,245.00 999,536.67 09/28/2016 0.727 1,000,838.62 3130A2T97 FEDERAL HOME LOAN BANKS 500,000.00 Agency AAA 0.50 09/28/2016 0.416 500,415.00 -1,186.47 99.825 645.83 499,122.50 499,768.33 09/28/2016 0.727 500,308.97 912828PS3 UNITED STATES TREASURY 1,000,000.00 Government AAA 2.00 01/31/2016 0.315 1,025,195.31 -156.79 100.122 8,369.57 1,001,220.00 1,009,589.57 01/31/2016 0.468 1,001,376.79 912828PS3 UNITED STATES TREASURY 1,000,000.00 Government AAA 2.00 01/31/2016 0.335 1,018,007.81 -144.23 100.122 8,369.57 1,001,220.00 1,009,589.57 01/31/2016 0.468 1,001,364.23 14912L4X6 CATERPILLAR FINANCIAL SERVICES 775,000.00 Industrial A 2.05 08/01/2016 0.643 793,855.75 -1,569.57 100.612 6,619.79 779,745.32 786,365.12 CORP 08/01/2016 1.005 781,314.90 76912TJC8 RIVERSIDE CNTY CALIF PUB FING 125,000.00 Municipal A 1.00 09/01/2016 1.301 124,468.75 155.65 99.927 416.67 124,908.75 125,325.42 AUTH TAX ALLOC REV 09/01/2016 1.139 124,753.10 544587B72 LOS ANGELES CALIF MUN IMPT CORP 490,000.00 Municipal A+ 1.26 11/01/2016 1.26 490,000.00 837.90 100.171 720.30 490,837.90 491,558.20 LEASE REV 11/01/2016 1.082 490,000.00 912828RF9 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.00 08/31/2016 0.579 1,003,203.13 -748.86 100.203 3,379.12 1,002,031.00 1,005,410.12 08/31/2016 0.677 1,002,779.86 912828RF9 UNITED STATES TREASURY 1,000,000.00 Government AAA 1.00 08/31/2016 0.432 1,010,351.56 -1,723.37 100.203 3,379.12 1,002,031.00 1,005,410.12 08/31/2016 0.677 1,003,754.37 912828WQ9 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.50 06/30/2016 0.459 1,000,820.31 -437.39 99.977 13.74 999,766.00 999,779.74 06/30/2016 0.516 1,000,203.39 46625HHW3 JPMORGAN CHASE & CO 750,000.00 Financial A+ 2.60 01/15/2016 0.86 762,750.00 -183.71 100.041 8,991.67 750,313.50 759,305.17 01/15/2016 1.473 750,497.21 ------32,134,000.00 --- AA+ --- 05/19/2016 0.519 32,375,498.05 -27,179.27 --- 103,907.24 32,172,450.31 32,276,357.55 05/18/2016 0.686 32,199,629.58

13 Page 53

Balance Sheet Classification WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Description Base Current Units Market Sector Rating Coupon Final Book Base Original Cost, Base Net Total Market Base Accrued Base Market Value Base Market Value + Maturity, Yield, Base Book Value Unrealized Gain/ Price Balance Accrued Effective Yield Loss Maturity 58772PAB4 MBART-151-A2A 650,000.00 Asset Backed AAA 0.82 06/15/2018 1.007 649,085.94 -619.17 99.771 236.89 648,508.64 648,745.53 09/11/2016 1.161 649,127.81 90331HMR1 US BANK NA 450,000.00 Financial AA 0.62 01/26/2018 0.527 451,206.00 -3,106.38 99.512 519.17 447,805.35 448,324.52 01/26/2018 1.716 450,911.73 90331HMR1 US BANK NA 300,000.00 Financial AA 0.62 01/26/2018 0.629 300,000.00 -1,463.10 99.512 346.11 298,536.90 298,883.01 01/26/2018 1.716 300,000.00 89236WAB4 TART-15A-A2 495,855.46 Asset Backed AAA 0.71 07/17/2017 0.711 495,850.75 -415.84 99.916 156.47 495,437.60 495,594.07 04/29/2016 0.971 495,853.44 17275RAY8 CISCO SYSTEMS INC 750,000.00 Industrial AA- 0.822 06/15/2018 0.834 750,000.00 -1,574.25 99.79 291.13 748,425.75 748,716.88 06/15/2018 1.662 750,000.00 06050TLU4 BANK OF AMERICA NA 500,000.00 Financial A+ 0.832 02/14/2017 0.846 500,000.00 -799.50 99.84 531.30 499,200.50 499,731.80 02/14/2017 1.724 500,000.00 084664CD1 BERKSHIRE HATHAWAY FINANCE 750,000.00 Financial AA 0.621 01/12/2018 0.63 750,000.00 -1,712.25 99.771 1,034.33 748,287.75 749,322.08 CORP 01/12/2018 1.588 750,000.00 43814KAB7 HONDO-151-A2 252,965.61 Asset Backed AAA 0.70 06/15/2017 0.706 252,952.41 -241.23 99.903 78.70 252,719.07 252,797.77 04/22/2016 1.015 252,960.31 762494QV7 RIALTO CALIF UNI SCH DIST 250,000.00 Municipal AA 1.258 02/01/2017 1.258 250,000.00 -335.00 99.866 1,310.42 249,665.00 250,975.42 02/01/2017 1.412 250,000.00 41284BAB2 HARLY-151-A2A 319,404.33 Asset Backed AAA 0.80 01/15/2019 0.80 319,401.74 -526.65 99.835 113.57 318,876.26 318,989.82 07/22/2016 1.103 319,402.91 161571GJ7 CHAIT 2014-A1 A1 775,000.00 Asset Backed AAA 1.15 01/15/2019 1.022 776,453.13 -1,648.56 99.923 396.11 774,400.77 774,796.88 01/14/2017 1.236 776,049.33 912828TS9 UNITED STATES TREASURY 1,000,000.00 Government AAA 0.625 09/30/2017 0.631 999,882.81 -6,807.95 99.308 1,588.11 993,086.00 994,674.11 09/30/2017 1.047 999,893.95 31679KAB6 FTAT-142-A2A 86,721.92 Asset Backed AAA 0.45 04/17/2017 0.456 86,712.39 -37.83 99.956 17.34 86,683.38 86,700.73 01/29/2016 1.00 86,721.21 06050TMB5 BANK OF AMERICA NA 250,000.00 Financial A+ 0.902 06/05/2017 0.916 250,000.00 -835.50 99.666 156.60 249,164.50 249,321.10 06/05/2017 1.852 250,000.00 912828SY7 UNITED STATES TREASURY 500,000.00 Government AAA 0.625 05/31/2017 0.73 499,179.69 -1,468.29 99.558 273.22 497,793.00 498,066.22 05/31/2017 0.959 499,261.29 31680GAB2 FTAT-151-A2A 500,000.00 Asset Backed AAA 1.02 05/15/2018 1.024 499,986.35 -1,190.17 99.76 226.67 498,797.65 499,024.32 10/10/2016 1.344 499,987.82 47787WAB5 JDOT-15B-A2 400,000.00 Asset Backed AAA 0.98 06/15/2018 0.983 399,986.52 -910.78 99.77 174.22 399,078.36 399,252.58 11/12/2016 1.258 399,989.14 90290XAB3 USAOT-151-A2 480,000.00 Asset Backed AAA 0.82 03/15/2018 0.825 479,982.14 -727.15 99.846 174.93 479,260.51 479,435.45 08/13/2016 1.08 479,987.66 02665WAY7 AMERICAN HONDA FINANCE CORP 500,000.00 Industrial A+ 1.02 09/20/2017 1.036 500,000.00 -558.00 99.888 169.92 499,442.00 499,611.92 09/20/2017 1.676 500,000.00 41284AAB4 HARLY-141-A2A 65,802.65 Asset Backed AAA 0.49 04/15/2018 0.494 65,798.20 -59.12 99.909 14.33 65,742.73 65,757.06 03/13/2016 0.941 65,801.86 191216BR0 COCA-COLA CO 300,000.00 Industrial AA 0.875 10/27/2017 0.897 299,868.00 -997.72 99.627 466.67 298,882.20 299,348.87 10/27/2017 1.089 299,879.92 65477WAB2 NART-14B-A2 396,490.98 Asset Backed AAA 0.60 06/15/2017 0.606 396,469.69 -265.71 99.931 105.73 396,218.12 396,323.85 03/23/2016 0.901 396,483.83 437076BJ0 HOME DEPOT INC 750,000.00 Industrial A 0.882 09/15/2017 0.896 750,000.00 1,104.75 100.147 312.38 751,104.75 751,417.13 09/15/2017 1.439 750,000.00 ------10,722,240.96 --- AA+ --- 12/29/2017 0.82 10,722,815.76 -25,195.40 --- 8,694.31 10,697,116.80 10,705,811.11 04/24/2017 1.322 10,722,312.19

Summary Identifier Description Base Current Units Market Sector Rating Coupon Final Book Base Original Cost, Base Net Total Market Base Accrued Base Market Value Base Market Value + Maturity, Yield, Base Book Value Unrealized Gain/ Price Balance Accrued Effective Yield Loss Maturity ------44,255,885.01 --- AA+ --- 10/03/2016 0.575 44,497,957.86 -52,374.67 --- 112,601.55 44,269,211.16 44,381,812.71 08/04/2016 0.817 44,321,585.83

14 Page 54

Balance Sheet Classification WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

* Grouped By: BS Class 2. * Groups Sorted By: BS Class 2. * Weighted By: Base Market Value + Accrued.

15 Page 55

Trading Activity WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

* Does not Lock Down. Buy Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 10/22/2015 Buy 191216BR0 0.875 10/27/2017 Citigroup Global Markets (AU) 300,000.00 99.956 0.00 0.00 0.00 0.00 -299,868.00 10/27/2015 COCA-COLA CO 300,000.00 299,868.00 10/14/2015 Buy 3130A2T97 0.50 09/28/2016 APX Asset 1,000,000.00 100.108 0.00 236.11 0.00 0.00 -1,001,316.11 10/15/2015 FEDERAL HOME LOAN BANK 1,000,000.00 1,001,080.00 12/22/2015 Buy 313384ZK8 0.00 07/15/2016 CastleOak Securities LP 500,000.00 99.653 0.00 0.00 0.00 0.00 -498,263.19 12/23/2015 FEDERAL HOME LOAN BANKS 500,000.00 498,263.19 12/14/2015 Buy 3137EACW7 2.00 08/25/2016 CastleOak Securities LP 235,000.00 100.81 0.00 1,436.11 0.00 0.00 -238,339.61 12/15/2015 FREDDIE MAC 235,000.00 236,903.50 10/28/2015 Buy 31680GAB2 1.02 05/15/2018 CS First Boston (BR) 500,000.00 99.997 0.00 0.00 0.00 0.00 -499,986.35 11/05/2015 FTAT-151-A2A 500,000.00 499,986.35 11/30/2015 Buy 459058DM2 0.50 05/16/2016 CastleOak Securities LP 1,000,000.00 99.997 0.00 236.11 0.00 0.00 -1,000,206.11 12/03/2015 INTL BK RECON & DEVELOP 1,000,000.00 999,970.00 11/04/2015 Buy 544587B72 1.26 11/01/2016 Merrill Lynch & Co. (AE) 490,000.00 100.00 0.00 0.00 0.00 0.00 -490,000.00 11/19/2015 LOS ANGELES CALIF MUN IMPT 490,000.00 490,000.00 CORP LEASE REV 12/03/2015 Buy 58772PAB4 0.82 06/15/2018 Deutsche Bank 650,000.00 99.859 0.00 340.53 0.00 0.00 -649,426.47 12/08/2015 MBART-151-A2A 650,000.00 649,085.94 12/01/2015 Buy 89116EC19 0.00 03/01/2016 TORONTO DOMINION BK 750,000.00 99.904 0.00 0.00 0.00 0.00 -749,279.58 12/01/2015 Toronto Dominion Holdings 750,000.00 749,279.58 (U.S.A.), Inc. 11/25/2015 Buy 912828RF9 1.00 08/31/2016 Goldman Sachs & Co. (AU) 1,000,000.00 100.32 0.00 2,362.64 0.00 0.00 -1,005,565.77 11/25/2015 US TREASURY N/B 1,000,000.00 1,003,203.13 11/04/2015 Buy 912828SY7 0.625 05/31/2017 BARCLAYS CAPITAL INC. 500,000.00 99.836 0.00 1,349.04 0.00 0.00 -500,528.73 11/05/2015 US TREASURY N/B 500,000.00 499,179.69 10/23/2015 Buy 912828TS9 0.625 09/30/2017 Bank of Montreal, Primary Broker 1,000,000.00 99.988 0.00 443.99 0.00 0.00 -1,000,326.80 10/26/2015 US TREASURY N/B 1,000,000.00 999,882.81 10/01/2015 Buy 949917397 0.06 12/31/2015 Direct 772,204.47 1.00 772,204.47 0.00 0.00 0.00 -772,204.47 10/01/2015 WFA HERITAGE MONEY MARK-I 772,204.47 772,204.47 10/08/2015 Buy 949917397 0.06 12/31/2015 Direct 1,694.81 1.00 1,694.81 0.00 0.00 0.00 -1,694.81 10/08/2015 WFA HERITAGE MONEY MARK-I 1,694.81 1,694.81 10/12/2015 Buy 949917397 0.06 12/31/2015 Direct 1,003,350.00 1.00 1,003,350.00 0.00 0.00 0.00 -1,003,350.00 10/15/2015 WFA HERITAGE MONEY MARK-I 1,003,350.00 1,003,350.00 10/16/2015 Buy 949917397 0.06 12/31/2015 Direct 17,661.08 1.00 17,661.08 0.00 0.00 0.00 -17,661.08 10/16/2015 WFA HERITAGE MONEY MARK-I 17,661.08 17,661.08 10/16/2015 Buy 949917397 0.06 12/31/2015 Direct 16,205.74 1.00 16,205.74 0.00 0.00 0.00 -16,205.74 10/16/2015 WFA HERITAGE MONEY MARK-I 16,205.74 16,205.74 10/15/2015 Buy 949917397 0.06 12/31/2015 Direct 54,268.52 1.00 54,268.52 0.00 0.00 0.00 -54,268.52 10/15/2015 WFA HERITAGE MONEY MARK-I 54,268.52 54,268.52 10/15/2015 Buy 949917397 0.06 12/31/2015 Direct 115,937.81 1.00 115,937.81 0.00 0.00 0.00 -115,937.81 10/15/2015 WFA HERITAGE MONEY MARK-I 115,937.81 115,937.81 10/13/2015 Buy 949917397 0.06 12/31/2015 Direct 1,123.17 1.00 1,123.17 0.00 0.00 0.00 -1,123.17 10/13/2015 WFA HERITAGE MONEY MARK-I 1,123.17 1,123.17 10/19/2015 Buy 949917397 0.06 12/31/2015 Direct 1,200,000.00 1.00 1,200,000.00 0.00 0.00 0.00 -1,200,000.00 10/19/2015 WFA HERITAGE MONEY MARK-I 1,200,000.00 1,200,000.00 10/19/2015 Buy 949917397 0.06 12/31/2015 Direct 18,231.60 1.00 18,231.60 0.00 0.00 0.00 -18,231.60 10/19/2015 WFA HERITAGE MONEY MARK-I 18,231.60 18,231.60 10/23/2015 Buy 949917397 0.06 12/31/2015 Direct 296.67 1.00 296.67 0.00 0.00 0.00 -296.67 10/23/2015 WFA HERITAGE MONEY MARK-I 296.67 296.67 10/28/2015 Buy 949917397 0.06 12/31/2015 Direct 151.79 1.00 151.79 0.00 0.00 0.00 -151.79 10/28/2015 WFA HERITAGE MONEY MARK-I 151.79 151.79 10/26/2015 Buy 949917397 0.06 12/31/2015 Direct 1,128.21 1.00 1,128.21 0.00 0.00 0.00 -1,128.21 10/26/2015 WFA HERITAGE MONEY MARK-I 1,128.21 1,128.21 11/04/2015 Buy 949917397 0.08 12/31/2015 Direct 1,001,250.00 1.00 1,001,250.00 0.00 0.00 0.00 -1,001,250.00 11/04/2015 WFA HERITAGE MONEY MARK-I 1,001,250.00 1,001,250.00 11/02/2015 Buy 949917397 0.08 12/31/2015 Direct 3,938.67 1.00 3,938.67 0.00 0.00 0.00 -3,938.67 11/02/2015 WFA HERITAGE MONEY MARK-I 3,938.67 3,938.67

16 Page 56

Trading Activity WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 11/13/2015 Buy 949917397 0.08 12/31/2015 Direct 51,102.67 1.00 51,102.67 0.00 0.00 0.00 -51,102.67 11/13/2015 WFA HERITAGE MONEY MARK-I 51,102.67 51,102.67 11/17/2015 Buy 949917397 0.08 12/31/2015 Direct 775,976.46 1.00 775,976.46 0.00 0.00 0.00 -775,976.46 11/17/2015 WFA HERITAGE MONEY MARK-I 775,976.46 775,976.46 11/16/2015 Buy 949917397 0.08 12/31/2015 Direct 759,073.60 1.00 759,073.60 0.00 0.00 0.00 -759,073.60 11/16/2015 WFA HERITAGE MONEY MARK-I 759,073.60 759,073.60 11/16/2015 Buy 949917397 0.08 12/31/2015 Direct 71,553.47 1.00 71,553.47 0.00 0.00 0.00 -71,553.47 11/16/2015 WFA HERITAGE MONEY MARK-I 71,553.47 71,553.47 11/16/2015 Buy 949917397 0.08 12/31/2015 Direct 126,735.24 1.00 126,735.24 0.00 0.00 0.00 -126,735.24 11/16/2015 WFA HERITAGE MONEY MARK-I 126,735.24 126,735.24 11/20/2015 Buy 949917397 0.08 12/31/2015 Direct 9,913.58 1.00 9,913.58 0.00 0.00 0.00 -9,913.58 11/20/2015 WFA HERITAGE MONEY MARK-I 9,913.58 9,913.58 11/19/2015 Buy 949917397 0.08 12/31/2015 Direct 260,693.39 1.00 260,693.39 0.00 0.00 0.00 -260,693.39 11/19/2015 WFA HERITAGE MONEY MARK-I 260,693.39 260,693.39 11/18/2015 Buy 949917397 0.08 12/31/2015 Direct 17,151.96 1.00 17,151.96 0.00 0.00 0.00 -17,151.96 11/18/2015 WFA HERITAGE MONEY MARK-I 17,151.96 17,151.96 11/24/2015 Buy 949917397 0.08 12/31/2015 Direct 14,560.36 1.00 14,560.36 0.00 0.00 0.00 -14,560.36 11/24/2015 WFA HERITAGE MONEY MARK-I 14,560.36 14,560.36 11/23/2015 Buy 949917397 0.08 12/31/2015 Direct 3,125.00 1.00 3,125.00 0.00 0.00 0.00 -3,125.00 11/23/2015 WFA HERITAGE MONEY MARK-I 3,125.00 3,125.00 11/23/2015 Buy 949917397 0.08 12/31/2015 Direct 695.00 1.00 695.00 0.00 0.00 0.00 -695.00 11/23/2015 WFA HERITAGE MONEY MARK-I 695.00 695.00 12/02/2015 Buy 949917397 0.25 12/31/2015 Direct 166.63 1.00 166.63 0.00 0.00 0.00 -166.63 12/02/2015 WellsFargo:Htge MM;I 166.63 166.63 12/01/2015 Buy 949917397 0.25 12/31/2015 Direct 225.31 1.00 225.31 0.00 0.00 0.00 -225.31 12/01/2015 WellsFargo:Htge MM;I 225.31 225.31 11/30/2015 Buy 949917397 0.08 12/31/2015 Direct 1,562.50 1.00 1,562.50 0.00 0.00 0.00 -1,562.50 11/30/2015 WFA HERITAGE MONEY MARK-I 1,562.50 1,562.50 12/07/2015 Buy 949917397 0.25 12/31/2015 Direct 488.75 1.00 488.75 0.00 0.00 0.00 -488.75 12/07/2015 WellsFargo:Htge MM;I 488.75 488.75 12/11/2015 Buy 949917397 0.25 12/31/2015 Direct 251,250.00 1.00 251,250.00 0.00 0.00 0.00 -251,250.00 12/11/2015 WellsFargo:Htge MM;I 251,250.00 251,250.00 12/10/2015 Buy 949917397 0.25 12/31/2015 Direct 10,625.00 1.00 10,625.00 0.00 0.00 0.00 -10,625.00 12/10/2015 WellsFargo:Htge MM;I 10,625.00 10,625.00 12/15/2015 Buy 949917397 0.25 12/31/2015 Direct 159.11 1.00 159.11 0.00 0.00 0.00 -159.11 12/15/2015 WellsFargo:Htge MM;I 159.11 159.11 12/15/2015 Buy 949917397 0.25 12/31/2015 Direct 2.89 1.00 2.89 0.00 0.00 0.00 -2.89 12/15/2015 WellsFargo:Htge MM;I 2.89 2.89 12/15/2015 Buy 949917397 0.25 12/31/2015 Direct 425.00 1.00 425.00 0.00 0.00 0.00 -425.00 12/15/2015 WellsFargo:Htge MM;I 425.00 425.00 12/18/2015 Buy 949917397 0.25 12/31/2015 Direct 11,005.69 1.00 11,005.69 0.00 0.00 0.00 -11,005.69 12/18/2015 WellsFargo:Htge MM;I 11,005.69 11,005.69 12/18/2015 Buy 949917397 0.25 12/31/2015 Direct 3.58 1.00 3.58 0.00 0.00 0.00 -3.58 12/18/2015 WellsFargo:Htge MM;I 3.58 3.58 12/17/2015 Buy 949917397 0.25 12/31/2015 Direct 14.73 1.00 14.73 0.00 0.00 0.00 -14.73 12/17/2015 WellsFargo:Htge MM;I 14.73 14.73 12/16/2015 Buy 949917397 0.25 12/31/2015 Direct 7,710.68 1.00 7,710.68 0.00 0.00 0.00 -7,710.68 12/16/2015 WellsFargo:Htge MM;I 7,710.68 7,710.68 12/16/2015 Buy 949917397 0.25 12/31/2015 Direct 326.67 1.00 326.67 0.00 0.00 0.00 -326.67 12/16/2015 WellsFargo:Htge MM;I 326.67 326.67 12/21/2015 Buy 949917397 0.25 12/31/2015 Direct 949.06 1.00 949.06 0.00 0.00 0.00 -949.06 12/21/2015 WellsFargo:Htge MM;I 949.06 949.06 12/31/2015 Buy 949917397 0.25 12/31/2015 Direct 2,500.00 1.00 2,500.00 0.00 0.00 0.00 -2,500.00 12/31/2015 WellsFargo:Htge MM;I 2,500.00 2,500.00 12/29/2015 Buy 949917397 0.25 12/31/2015 Direct 162.22 1.00 162.22 0.00 0.00 0.00 -162.22 12/29/2015 WellsFargo:Htge MM;I 162.22 162.22 --- Buy ------14,510,601.09 --- 6,585,601.09 6,404.53 0.00 0.00 -14,518,707.81 ------14,510,601.09 14,512,303.28

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Trading Activity WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Call Redemption Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 10/19/2015 Call Redemption 3133EDGM8 0.35 03/10/2016 Redemption -1,000,000.00 100.00 0.00 -379.17 415.68 0.00 1,000,379.17 10/19/2015 FEDERAL FARM CREDIT BANK -1,000,000.00 -1,000,000.00 10/19/2015 Call Redemption 3133EDGM8 0.35 03/10/2016 Redemption -200,000.00 100.00 0.00 -75.83 70.81 0.00 200,075.83 10/19/2015 FEDERAL FARM CREDIT BANK -200,000.00 -200,000.00 10/01/2015 Call Redemption 677520FR4 5.39 10/01/2015 Redemption -750,000.00 100.00 0.00 0.00 0.00 0.00 750,000.00 10/01/2015 OH ST-TXB-DEV ASST-A -750,000.00 -750,000.00 --- Call Redemption ------Redemption -1,950,000.00 100.00 0.00 -455.00 486.49 0.00 1,950,455.00 ------1,950,000.00 -1,950,000.00

Maturity Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 11/04/2015 Maturity 3133EDGC0 0.25 11/04/2015 Maturity -1,000,000.00 100.00 0.00 0.00 0.00 0.00 1,000,000.00 11/04/2015 FEDERAL FARM CREDIT BANK -1,000,000.00 -1,000,000.00 11/16/2015 Maturity 69371RK96 0.70 11/16/2015 Maturity -205,000.00 100.00 0.00 0.00 0.00 0.00 205,000.00 11/16/2015 PACCAR FINANCIAL CORP -205,000.00 -205,000.00 11/16/2015 Maturity 69371RK96 0.70 11/16/2015 Maturity -500,000.00 100.00 0.00 0.00 0.00 0.00 500,000.00 11/16/2015 PACCAR FINANCIAL CORP -500,000.00 -500,000.00 12/11/2015 Maturity 74256LAC3 1.00 12/11/2015 Maturity -250,000.00 100.00 0.00 0.00 0.00 0.00 250,000.00 12/11/2015 PRINCIPAL LIFE GLOBAL -250,000.00 -250,000.00 FUNDING II 11/17/2015 Maturity 89116FYH7 0.00 11/17/2015 Maturity -350,000.00 100.00 0.00 0.00 0.00 0.00 350,000.00 11/17/2015 Toronto Dominion Holdings -350,000.00 -350,000.00 (U.S.A.), Inc. 11/17/2015 Maturity 89116FYH7 0.00 11/17/2015 Maturity -350,000.00 100.00 0.00 0.00 0.00 0.00 350,000.00 11/17/2015 Toronto Dominion Holdings -350,000.00 -350,000.00 (U.S.A.), Inc. --- Maturity ------Maturity -2,655,000.00 100.00 0.00 0.00 0.00 0.00 2,655,000.00 ------2,655,000.00 -2,655,000.00

Principal Paydown Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 12/15/2015 Principal Paydown 31679KAB6 0.45 04/17/2017 Direct 0.00 --- 0.00 0.00 0.00 0.00 46,747.54 12/15/2015 FTAT-142-A2A -46,747.54 -46,747.54 11/15/2015 Principal Paydown 31679KAB6 0.45 04/17/2017 Direct 0.00 --- 0.00 0.00 0.01 0.00 52,040.60 11/15/2015 FITAT 2014-2 A2A -52,040.59 -52,040.60 10/15/2015 Principal Paydown 31679KAB6 0.45 04/17/2017 Direct 0.00 --- 0.00 0.00 -0.00 0.00 54,128.63 10/15/2015 FITAT 2014-2 A2A -54,128.63 -54,128.63 11/23/2015 Principal Paydown 36164EAB1 0.89 11/24/2017 Direct 0.00 --- 0.00 0.00 -0.00 0.00 14,263.69 11/23/2015 GEET 2015-1 A2 -14,263.69 -14,263.69 12/23/2015 Principal Paydown 36164EAB1 0.89 11/24/2017 Direct 0.00 --- 0.00 0.00 0.00 0.00 385,736.31 12/23/2015 GEETT-151-A2 -385,736.31 -385,736.31 10/15/2015 Principal Paydown 41284AAB4 0.49 04/15/2018 Direct 0.00 --- 0.00 0.00 -0.00 0.00 15,769.59 10/15/2015 HDMOT 2014-1 A2A -15,769.59 -15,769.59 12/15/2015 Principal Paydown 41284AAB4 0.49 04/15/2018 Direct 0.00 --- 0.00 0.00 -0.01 0.00 12,011.12 12/15/2015 HARLY-141-A2A -12,011.13 -12,011.12 11/15/2015 Principal Paydown 41284AAB4 0.49 04/15/2018 Direct 0.00 --- 0.00 0.00 0.00 0.00 14,514.84 11/15/2015 HDMOT 2014-1 A2A -14,514.84 -14,514.84 12/15/2015 Principal Paydown 41284BAB2 0.80 01/15/2019 Direct 0.00 --- 0.00 0.00 0.00 0.00 23,880.19 12/15/2015 HARLY-151-A2A -23,880.19 -23,880.19 11/15/2015 Principal Paydown 41284BAB2 0.80 01/15/2019 Direct 0.00 --- 0.00 0.00 0.00 0.00 27,845.66 11/15/2015 HDMOT 2015-1 A2A -27,845.66 -27,845.66 10/15/2015 Principal Paydown 41284BAB2 0.80 01/15/2019 Direct 0.00 --- 0.00 0.00 0.00 0.00 28,616.89 10/15/2015 HDMOT 2015-1 A2A -28,616.89 -28,616.89

18 Page 58

Trading Activity WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Sell Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission 10/14/2015 Sell 3133EDXG2 0.67 10/14/2016 Not Provided -1,000,000.00 100.00 0.00 0.00 0.00 0.00 1,000,000.00 10/14/2015 FEDERAL FARM CREDIT BANK -1,000,000.00 -1,000,000.00 10/15/2015 Sell 949917397 0.06 12/31/2015 Direct -999,694.98 1.00 -999,694.98 0.00 0.00 0.00 999,694.98 10/15/2015 WFA HERITAGE MONEY MARK-I -999,694.98 -999,694.98 10/20/2015 Sell 949917397 0.06 12/31/2015 Direct -4,250.38 1.00 -4,250.38 0.00 0.00 0.00 4,250.38 10/20/2015 WFA HERITAGE MONEY MARK-I -4,250.38 -4,250.38 10/27/2015 Sell 949917397 0.06 12/31/2015 Direct -299,868.00 1.00 -299,868.00 0.00 0.00 0.00 299,868.00 10/27/2015 WFA HERITAGE MONEY MARK-I -299,868.00 -299,868.00 10/26/2015 Sell 949917397 0.06 12/31/2015 Direct -1,000,326.80 1.00 -1,000,326.80 0.00 0.00 0.00 1,000,326.80 10/26/2015 WFA HERITAGE MONEY MARK-I -1,000,326.80 -1,000,326.80 11/05/2015 Sell 949917397 0.08 12/31/2015 Direct -1,000,515.08 1.00 -1,000,515.08 0.00 0.00 0.00 1,000,515.08 11/05/2015 WFA HERITAGE MONEY MARK-I -1,000,515.08 -1,000,515.08 11/25/2015 Sell 949917397 0.08 12/31/2015 Direct -1,005,565.77 1.00 -1,005,565.77 0.00 0.00 0.00 1,005,565.77 11/25/2015 WFA HERITAGE MONEY MARK-I -1,005,565.77 -1,005,565.77 12/03/2015 Sell 949917397 0.25 12/31/2015 Direct -1,000,206.11 1.00 -1,000,206.11 0.00 0.00 0.00 1,000,206.11 12/03/2015 WellsFargo:Htge MM;I -1,000,206.11 -1,000,206.11 12/01/2015 Sell 949917397 0.25 12/31/2015 Direct -749,279.58 1.00 -749,279.58 0.00 0.00 0.00 749,279.58 12/01/2015 WellsFargo:Htge MM;I -749,279.58 -749,279.58 12/08/2015 Sell 949917397 0.25 12/31/2015 Direct -649,426.47 1.00 -649,426.47 0.00 0.00 0.00 649,426.47 12/08/2015 WellsFargo:Htge MM;I -649,426.47 -649,426.47

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Trading Activity WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Summary Trade Date, Transaction Type Identifier, Coupon Final Broker/Dealer Base Original Units, Price Purchased Cost, Base Accrued Base Net Total Base Base Amount Settle Date Description Rate Maturity Base Current Units Base Principal Interest Realized Gain Commission ------2,080,137.71 --- -239,862.29 5,949.53 486.48 0.00 -75,476.45 ------67,824.73 69,526.92

* 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.

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Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

* Does not Lock Down. Receivable Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate 12/31/2015 12/31/2015 Money Market Funds 0.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 --- 225.38 12/31/2015 12/31/2015 Money Market Funds 0.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 --- 225.38

Settled Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate 12/20/2015 12/20/2015 Coupon 0.00 02665WAY7 AMERICAN HONDA FINANCE CORP 1.02 09/20/2017 --- 949.06 11/01/2015 11/01/2015 Coupon 0.00 03255LGX1 ANAHEIM FING AUTH-B 1.00 05/01/2016 --- 3,750.00 11/16/2015 11/16/2015 Coupon 0.00 06050TLU4 BANK OF AMERICA NA 0.832 02/14/2017 --- 1,017.42 12/07/2015 12/07/2015 Coupon 0.00 06050TMB5 BANK OF AMERICA NA 0.902 06/05/2017 --- 488.75 10/13/2015 10/13/2015 Coupon 0.00 084664CD1 BERKSHIRE HATHAWAY FIN 0.621 01/12/2018 --- 1,123.17 11/20/2015 11/20/2015 Coupon 0.00 097023BC8 BOEING CO 3.75 11/20/2016 --- 14,062.50 12/15/2015 12/15/2015 Coupon 0.00 161571GJ7 CHAIT 2014-A1 A1 1.15 01/15/2019 --- 742.71 10/15/2015 10/15/2015 Coupon 0.00 161571GJ7 CHAIT 2014-A1 A1 1.15 01/15/2019 --- 742.71 11/15/2015 11/15/2015 Coupon 0.00 161571GJ7 CHAIT 2014-A1 A1 1.15 01/15/2019 --- 742.71 12/15/2015 12/15/2015 Coupon 0.00 17275RAY8 CISCO SYSTEMS INC 0.822 06/15/2018 --- 1,226.98 10/22/2015 10/27/2015 Buy 300,000.00 191216BR0 COCA-COLA CO 0.875 10/27/2017 99.956 -299,868.00 10/14/2015 10/15/2015 Buy 1,000,000.00 3130A2T97 FEDERAL HOME LOAN BANK 0.50 09/28/2016 100.108 -1,001,316.11 11/23/2015 11/23/2015 Coupon 0.00 3130A3J70 FEDERAL HOME LOAN BANK 0.625 11/23/2016 --- 3,125.00 10/01/2015 10/01/2015 Coupon 0.00 3130A4KE1 FEDERAL HOME LOAN BANK 0.33 04/01/2016 --- 925.83 12/10/2015 12/10/2015 Coupon 0.00 313373SZ6 FEDERAL HOME LOAN BANKS 2.125 06/10/2016 --- 10,625.00 12/22/2015 12/23/2015 Buy 500,000.00 313384ZK8 FEDERAL HOME LOAN BANKS 0.00 07/15/2016 99.653 -498,263.19 11/04/2015 11/04/2015 Coupon 0.00 3133EDGC0 FEDERAL FARM CREDIT BANK 0.25 11/04/2015 --- 1,250.00 11/04/2015 11/04/2015 Maturity -1,000,000.00 3133EDGC0 FEDERAL FARM CREDIT BANK 0.25 11/04/2015 100.00 1,000,000.00 10/19/2015 10/19/2015 Call Redemption -1,000,000.00 3133EDGM8 FEDERAL FARM CREDIT BANK 0.35 03/10/2016 100.00 1,000,379.17 10/19/2015 10/19/2015 Call Redemption -200,000.00 3133EDGM8 FEDERAL FARM CREDIT BANK 0.35 03/10/2016 100.00 200,075.83 10/14/2015 10/14/2015 Sell -1,000,000.00 3133EDXG2 FEDERAL FARM CREDIT BANK 0.67 10/14/2016 100.00 1,000,000.00 10/14/2015 10/14/2015 Coupon 0.00 3133EDXG2 FEDERAL FARM CREDIT BANK 0.67 10/14/2016 --- 3,350.00 12/14/2015 12/15/2015 Buy 235,000.00 3137EACW7 FREDDIE MAC 2.00 08/25/2016 100.81 -238,339.61 12/15/2015 12/15/2015 Coupon 0.00 31679KAB6 FTAT-142-A2A 0.45 04/17/2017 --- 50.05 12/15/2015 12/15/2015 Principal Paydown -46,747.54 31679KAB6 FTAT-142-A2A 0.45 04/17/2017 --- 46,747.54 11/15/2015 11/15/2015 Coupon 0.00 31679KAB6 FITAT 2014-2 A2A 0.45 04/17/2017 --- 69.57 11/15/2015 11/15/2015 Principal Paydown -52,040.59 31679KAB6 FITAT 2014-2 A2A 0.45 04/17/2017 --- 52,040.60 10/15/2015 10/15/2015 Coupon 0.00 31679KAB6 FITAT 2014-2 A2A 0.45 04/17/2017 --- 89.86 10/15/2015 10/15/2015 Principal Paydown -54,128.63 31679KAB6 FITAT 2014-2 A2A 0.45 04/17/2017 --- 54,128.63 11/15/2015 11/15/2015 Coupon 0.00 31680GAB2 FTAT-151-A2A 1.02 05/15/2018 --- 141.67 12/15/2015 12/15/2015 Coupon 0.00 31680GAB2 FTAT-151-A2A 1.02 05/15/2018 --- 425.00 10/28/2015 11/05/2015 Buy 500,000.00 31680GAB2 FTAT-151-A2A 1.02 05/15/2018 99.997 -499,986.35 11/23/2015 11/23/2015 Coupon 0.00 36164EAB1 GEET 2015-1 A2 0.89 11/24/2017 --- 296.67 11/23/2015 11/23/2015 Principal Paydown -14,263.69 36164EAB1 GEET 2015-1 A2 0.89 11/24/2017 --- 14,263.69 10/23/2015 10/23/2015 Coupon 0.00 36164EAB1 GEET 2015-1 A2 0.89 11/24/2017 --- 296.67 12/23/2015 12/23/2015 Principal Paydown -385,736.31 36164EAB1 GEETT-151-A2 0.89 11/24/2017 --- 385,736.31 12/23/2015 12/23/2015 Coupon 0.00 36164EAB1 GEETT-151-A2 0.89 11/24/2017 --- 286.09 10/08/2015 10/08/2015 Coupon 0.00 36962G6Q2 GENERAL ELEC CAP CORP 0.918 01/08/2016 --- 1,694.81 10/15/2015 10/15/2015 Coupon 0.00 41284AAB4 HDMOT 2014-1 A2A 0.49 04/15/2018 --- 44.14 10/15/2015 10/15/2015 Principal Paydown -15,769.59 41284AAB4 HDMOT 2014-1 A2A 0.49 04/15/2018 --- 15,769.59

21 Page 61

Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate 12/15/2015 12/15/2015 Coupon 0.00 41284AAB4 HARLY-141-A2A 0.49 04/15/2018 --- 31.77 12/15/2015 12/15/2015 Principal Paydown -12,011.13 41284AAB4 HARLY-141-A2A 0.49 04/15/2018 --- 12,011.12 11/15/2015 11/15/2015 Coupon 0.00 41284AAB4 HDMOT 2014-1 A2A 0.49 04/15/2018 --- 37.70 11/15/2015 11/15/2015 Principal Paydown -14,514.84 41284AAB4 HDMOT 2014-1 A2A 0.49 04/15/2018 --- 14,514.84 12/15/2015 12/15/2015 Coupon 0.00 41284BAB2 HARLY-151-A2A 0.80 01/15/2019 --- 228.86 12/15/2015 12/15/2015 Principal Paydown -23,880.19 41284BAB2 HARLY-151-A2A 0.80 01/15/2019 --- 23,880.19 11/15/2015 11/15/2015 Coupon 0.00 41284BAB2 HDMOT 2015-1 A2A 0.80 01/15/2019 --- 247.42 11/15/2015 11/15/2015 Principal Paydown -27,845.66 41284BAB2 HDMOT 2015-1 A2A 0.80 01/15/2019 --- 27,845.66 10/15/2015 10/15/2015 Coupon 0.00 41284BAB2 HDMOT 2015-1 A2A 0.80 01/15/2019 --- 266.50 10/15/2015 10/15/2015 Principal Paydown -28,616.89 41284BAB2 HDMOT 2015-1 A2A 0.80 01/15/2019 --- 28,616.89 12/15/2015 12/15/2015 Coupon 0.00 437076BJ0 HOME DEPOT INC 0.882 09/15/2017 --- 1,340.73 12/18/2015 12/18/2015 Principal Paydown -11,005.70 43814GAB6 HONDO-142-A2 0.39 09/19/2016 --- 11,005.69 12/18/2015 12/18/2015 Coupon 0.00 43814GAB6 HONDO-142-A2 0.39 09/19/2016 --- 3.58 11/18/2015 11/18/2015 Principal Paydown -17,142.80 43814GAB6 HAROT 2014-2 A2 0.39 09/19/2016 --- 17,142.81 11/18/2015 11/18/2015 Coupon 0.00 43814GAB6 HAROT 2014-2 A2 0.39 09/19/2016 --- 9.15 10/18/2015 10/18/2015 Coupon 0.00 43814GAB6 HAROT 2014-2 A2 0.39 09/19/2016 --- 14.79 10/18/2015 10/18/2015 Principal Paydown -17,372.50 43814GAB6 HAROT 2014-2 A2 0.39 09/19/2016 --- 17,372.50 12/15/2015 12/15/2015 Coupon 0.00 43814KAB7 HONDO-151-A2 0.70 06/15/2017 --- 165.86 12/15/2015 12/15/2015 Principal Paydown -31,369.24 43814KAB7 HONDO-151-A2 0.70 06/15/2017 --- 31,369.24 11/15/2015 11/15/2015 Coupon 0.00 43814KAB7 HAROT 2015-1 A2 0.70 06/15/2017 --- 185.11 11/15/2015 11/15/2015 Principal Paydown -33,004.06 43814KAB7 HAROT 2015-1 A2 0.70 06/15/2017 --- 33,004.06 10/15/2015 10/15/2015 Principal Paydown -17,661.08 43814KAB7 HAROT 2015-1 A2 0.70 06/15/2017 --- 17,661.08 10/15/2015 10/15/2015 Coupon 0.00 43814KAB7 HAROT 2015-1 A2 0.70 06/15/2017 --- 195.42 11/30/2015 12/03/2015 Buy 1,000,000.00 459058DM2 INTL BK RECON & DEVELOP 0.50 05/16/2016 99.997 -1,000,206.11 10/15/2015 10/15/2015 Coupon 0.00 47787VAB7 JDOT 2014-A A2 0.45 09/15/2016 --- 50.03 10/15/2015 10/15/2015 Principal Paydown -51,102.67 47787VAB7 JDOT 2014-A A2 0.45 09/15/2016 --- 51,102.67 11/15/2015 11/15/2015 Principal Paydown -74,594.22 47787VAB7 JDOT 2014-A A2 0.45 09/15/2016 --- 74,594.21 11/15/2015 11/15/2015 Coupon 0.00 47787VAB7 JDOT 2014-A A2 0.45 09/15/2016 --- 30.86 12/15/2015 12/15/2015 Coupon 0.00 47787VAB7 JDOT-14-A2 0.45 09/15/2016 --- 2.89 12/15/2015 12/15/2015 Principal Paydown -7,710.69 47787VAB7 JDOT-14-A2 0.45 09/15/2016 --- 7,710.69 12/15/2015 12/15/2015 Coupon 0.00 47787WAB5 JDOT-15B-A2 0.98 06/15/2018 --- 326.67 10/15/2015 10/15/2015 Coupon 0.00 47787WAB5 JDOT 2015-B A2 0.98 06/15/2018 --- 392.00 11/15/2015 11/15/2015 Coupon 0.00 47787WAB5 JDOT 2015-B A2 0.98 06/15/2018 --- 326.67 11/04/2015 11/19/2015 Buy 490,000.00 544587B72 LOS ANGELES CALIF MUN IMPT CORP LEASE 1.26 11/01/2016 100.00 -490,000.00 REV 10/15/2015 10/15/2015 Coupon 0.00 58768EAC3 MBALT 2014-A A2A 0.48 06/15/2016 --- 6.25 10/15/2015 10/15/2015 Principal Paydown -15,632.82 58768EAC3 MBALT 2014-A A2A 0.48 06/15/2016 --- 15,632.82 12/03/2015 12/08/2015 Buy 650,000.00 58772PAB4 MBART-151-A2A 0.82 06/15/2018 99.859 -649,426.47 12/15/2015 12/15/2015 Coupon 0.00 58772PAB4 MBART-151-A2A 0.82 06/15/2018 --- 444.17 10/01/2015 10/01/2015 Coupon 0.00 605581FW2 MISSISSIPPI ST-B-TXBL 0.64 10/01/2016 --- 960.00 12/15/2015 12/15/2015 Coupon 0.00 65477WAB2 NART-14B-A2 0.60 06/15/2017 --- 230.05 12/15/2015 12/15/2015 Principal Paydown -63,615.73 65477WAB2 NART-14B-A2 0.60 06/15/2017 --- 63,615.73 10/15/2015 10/15/2015 Principal Paydown -71,114.11 65477WAB2 NAROT 2014-B A2 0.60 06/15/2017 --- 71,114.11 10/15/2015 10/15/2015 Coupon 0.00 65477WAB2 NAROT 2014-B A2 0.60 06/15/2017 --- 301.25 11/15/2015 11/15/2015 Coupon 0.00 65477WAB2 NAROT 2014-B A2 0.60 06/15/2017 --- 265.70 11/15/2015 11/15/2015 Principal Paydown -71,287.77 65477WAB2 NAROT 2014-B A2 0.60 06/15/2017 --- 71,287.77 10/01/2015 10/01/2015 Coupon 0.00 677520FR4 OH ST-TXB-DEV ASST-A 5.39 10/01/2015 --- 20,212.50 10/01/2015 10/01/2015 Call Redemption -750,000.00 677520FR4 OH ST-TXB-DEV ASST-A 5.39 10/01/2015 100.00 750,000.00 11/16/2015 11/16/2015 Coupon 0.00 69371RK96 PACCAR FINANCIAL CORP 0.70 11/16/2015 --- 2,467.50 11/16/2015 11/16/2015 Maturity -205,000.00 69371RK96 PACCAR FINANCIAL CORP 0.70 11/16/2015 100.00 205,000.00

22 Page 62

Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate 11/16/2015 11/16/2015 Maturity -500,000.00 69371RK96 PACCAR FINANCIAL CORP 0.70 11/16/2015 100.00 500,000.00 11/18/2015 11/18/2015 Coupon 0.00 70659PAE1 PENAR 2013-1A A1 0.589 11/18/2017 --- 366.72 11/18/2015 11/18/2015 Principal Paydown -750,000.00 70659PAE1 PENAR 2013-1A A1 0.589 11/18/2017 --- 750,000.00 10/19/2015 10/19/2015 Coupon 0.00 70659PAE1 PENAR 2013-1A A1 0.587 11/18/2017 --- 389.31 12/11/2015 12/11/2015 Coupon 0.00 74256LAC3 PRINCIPAL LIFE GLOBAL FUNDING II 1.00 12/11/2015 --- 1,250.00 12/11/2015 12/11/2015 Maturity -250,000.00 74256LAC3 PRINCIPAL LIFE GLOBAL FUNDING II 1.00 12/11/2015 100.00 250,000.00 12/01/2015 12/01/2015 Buy 750,000.00 89116EC19 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 03/01/2016 99.904 -749,279.58 11/17/2015 11/17/2015 Maturity -350,000.00 89116FYH7 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 11/17/2015 100.00 350,000.00 11/17/2015 11/17/2015 Maturity -350,000.00 89116FYH7 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 11/17/2015 100.00 350,000.00 11/28/2015 11/28/2015 Coupon 0.00 89233AHP7 Toyota Motor Credit Corporation 0.364 02/19/2016 --- 166.63 10/28/2015 10/28/2015 Coupon 0.00 89233AHP7 Toyota Motor Credit Corporation 0.364 02/19/2016 --- 152.00 12/28/2015 12/28/2015 Coupon 0.00 89233AHP7 Toyota Motor Credit Corporation 0.403 02/19/2016 --- 162.22 10/15/2015 10/15/2015 Coupon 0.00 89236WAB4 TAOT 2015-A A2 0.71 07/17/2017 --- 355.00 12/15/2015 12/15/2015 Principal Paydown -55,774.07 89236WAB4 TART-15A-A2 0.71 07/17/2017 --- 55,774.07 12/15/2015 12/15/2015 Coupon 0.00 89236WAB4 TART-15A-A2 0.71 07/17/2017 --- 326.38 11/15/2015 11/15/2015 Coupon 0.00 89236WAB4 TAOT 2015-A A2 0.71 07/17/2017 --- 355.00 11/15/2015 11/15/2015 Principal Paydown -48,370.47 89236WAB4 TAOT 2015-A A2 0.71 07/17/2017 --- 48,370.47 11/15/2015 11/15/2015 Coupon 0.00 90290XAB3 USAOT 2015-1 A2 0.82 03/15/2018 --- 328.00 10/15/2015 10/15/2015 Coupon 0.00 90290XAB3 USAOT 2015-1 A2 0.82 03/15/2018 --- 328.00 12/15/2015 12/15/2015 Coupon 0.00 90290XAB3 USAOT-151-A2 0.82 03/15/2018 --- 328.00 10/26/2015 10/26/2015 Coupon 0.00 90331HMR1 US BANK NA CINCINNATI 0.62 01/26/2018 --- 1,128.21 11/25/2015 11/25/2015 Buy 1,000,000.00 912828RF9 US TREASURY N/B 1.00 08/31/2016 100.32 -1,005,565.77 11/30/2015 11/30/2015 Coupon 0.00 912828SY7 US TREASURY N/B 0.625 05/31/2017 --- 1,562.50 11/04/2015 11/05/2015 Buy 500,000.00 912828SY7 US TREASURY N/B 0.625 05/31/2017 99.836 -500,528.73 10/23/2015 10/26/2015 Buy 1,000,000.00 912828TS9 US TREASURY N/B 0.625 09/30/2017 99.988 -1,000,326.80 12/31/2015 12/31/2015 Coupon 0.00 912828WQ9 UNITED STATES TREASURY 0.50 06/30/2016 --- 2,500.00 11/15/2015 11/15/2015 Coupon 0.00 91412GUT0 UNIV OF CALIFORNIA-AN 0.634 05/15/2016 --- 792.50 11/23/2015 11/23/2015 Coupon 0.00 928668AD4 VOLKSWAGEN GROUP AMERICA 0.598 05/23/2016 --- 695.00 10/01/2015 10/01/2015 Buy 772,204.47 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -772,204.47 10/08/2015 10/08/2015 Buy 1,694.81 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -1,694.81 10/12/2015 10/15/2015 Buy 1,003,350.00 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -1,003,350.00 10/16/2015 10/16/2015 Buy 16,205.74 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -16,205.74 10/16/2015 10/16/2015 Buy 17,661.08 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -17,661.08 10/15/2015 10/15/2015 Sell -999,694.98 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 999,694.98 10/15/2015 10/15/2015 Buy 115,937.81 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -115,937.81 10/15/2015 10/15/2015 Buy 54,268.52 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -54,268.52 10/13/2015 10/13/2015 Buy 1,123.17 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -1,123.17 10/20/2015 10/20/2015 Sell -4,250.38 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 4,250.38 10/19/2015 10/19/2015 Buy 1,200,000.00 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -1,200,000.00 10/19/2015 10/19/2015 Buy 18,231.60 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -18,231.60 10/23/2015 10/23/2015 Buy 296.67 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -296.67 10/28/2015 10/28/2015 Buy 151.79 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -151.79 10/27/2015 10/27/2015 Sell -299,868.00 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 299,868.00 10/26/2015 10/26/2015 Buy 1,128.21 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 -1,128.21 10/26/2015 10/26/2015 Sell -1,000,326.80 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 1.00 1,000,326.80 10/31/2015 10/31/2015 Money Market Funds 0.00 949917397 WFA HERITAGE MONEY MARK-I 0.06 12/31/2015 --- 188.67 11/05/2015 11/05/2015 Sell -1,000,515.08 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 1,000,515.08 11/04/2015 11/04/2015 Buy 1,001,250.00 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -1,001,250.00 11/02/2015 11/02/2015 Buy 3,938.67 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -3,938.67 11/13/2015 11/13/2015 Buy 51,102.67 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -51,102.67 23 Page 63

Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate 11/17/2015 11/17/2015 Buy 775,976.46 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -775,976.46 11/16/2015 11/16/2015 Buy 71,553.47 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -71,553.47 11/16/2015 11/16/2015 Buy 759,073.60 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -759,073.60 11/16/2015 11/16/2015 Buy 126,735.24 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -126,735.24 11/20/2015 11/20/2015 Buy 9,913.58 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -9,913.58 11/19/2015 11/19/2015 Buy 260,693.39 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -260,693.39 11/18/2015 11/18/2015 Buy 17,151.96 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -17,151.96 11/25/2015 11/25/2015 Sell -1,005,565.77 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 1,005,565.77 11/24/2015 11/24/2015 Buy 14,560.36 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -14,560.36 11/23/2015 11/23/2015 Buy 695.00 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -695.00 11/23/2015 11/23/2015 Buy 3,125.00 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -3,125.00 12/03/2015 12/03/2015 Sell -1,000,206.11 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 1,000,206.11 12/02/2015 12/02/2015 Buy 166.63 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -166.63 12/01/2015 12/01/2015 Buy 225.31 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -225.31 12/01/2015 12/01/2015 Sell -749,279.58 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 749,279.58 11/30/2015 11/30/2015 Money Market Funds 0.00 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 --- 225.31 11/30/2015 11/30/2015 Buy 1,562.50 949917397 WFA HERITAGE MONEY MARK-I 0.08 12/31/2015 1.00 -1,562.50 12/07/2015 12/07/2015 Buy 488.75 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -488.75 12/11/2015 12/11/2015 Buy 251,250.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -251,250.00 12/10/2015 12/10/2015 Buy 10,625.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -10,625.00 12/08/2015 12/08/2015 Sell -649,426.47 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 649,426.47 12/15/2015 12/15/2015 Buy 2.89 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -2.89 12/15/2015 12/15/2015 Buy 159.11 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -159.11 12/15/2015 12/15/2015 Buy 425.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -425.00 12/18/2015 12/18/2015 Buy 3.58 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -3.58 12/18/2015 12/18/2015 Buy 11,005.69 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -11,005.69 12/17/2015 12/17/2015 Buy 14.73 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -14.73 12/16/2015 12/16/2015 Buy 326.67 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -326.67 12/16/2015 12/16/2015 Buy 7,710.68 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -7,710.68 12/23/2015 12/23/2015 Sell -112,240.79 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 112,240.79 12/21/2015 12/21/2015 Buy 949.06 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -949.06 12/21/2015 12/21/2015 Sell -4,089.42 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 4,089.42 12/31/2015 12/31/2015 Buy 2,500.00 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -2,500.00 12/29/2015 12/29/2015 Buy 162.22 949917397 WellsFargo:Htge MM;I 0.25 12/31/2015 1.00 -162.22 10/20/2015 10/20/2015 Management Fee 0.00 CCYUSD US Dollar 0.00 12/31/2015 --- -4,250.38 11/20/2015 11/20/2015 Management Fee 0.00 CCYUSD US Dollar 0.00 12/31/2015 --- -4,148.92 12/21/2015 12/21/2015 Management Fee 0.00 CCYUSD US Dollar 0.00 12/31/2015 --- -4,089.42 ------67,824.73 ------105.92

Summary Entry Date Settle Date Transaction Type Base Current Units Identifier Description Coupon Final Maturity Price Base Amount Rate ------67,824.73 ------119.46

* Grouped By: Status. * Groups Sorted By: Status. * Showing transactions with Entry 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.

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MMF Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

* Does not Lock Down. Receivable Entry Date Settle Date Transaction Type Base Current Units Identifier Ticker Description Base Amount 12/31/2015 12/31/2015 Money Market Funds 0.00 949917397 SHIXX WellsFargo:Htge MM;I 225.38 12/31/2015 12/31/2015 Money Market Funds 0.00 949917397 SHIXX WellsFargo:Htge MM;I 225.38

Settled Entry Date Settle Date Transaction Type Base Current Units Identifier Ticker Description Base Amount 10/01/2015 10/01/2015 Buy 772,204.47 949917397 SHIXX WFA HERITAGE MONEY MARK-I -772,204.47 10/08/2015 10/08/2015 Buy 1,694.81 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,694.81 10/12/2015 10/15/2015 Buy 1,003,350.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,003,350.00 10/16/2015 10/16/2015 Buy 16,205.74 949917397 SHIXX WFA HERITAGE MONEY MARK-I -16,205.74 10/16/2015 10/16/2015 Buy 17,661.08 949917397 SHIXX WFA HERITAGE MONEY MARK-I -17,661.08 10/15/2015 10/15/2015 Sell -999,694.98 949917397 SHIXX WFA HERITAGE MONEY MARK-I 999,694.98 10/15/2015 10/15/2015 Buy 115,937.81 949917397 SHIXX WFA HERITAGE MONEY MARK-I -115,937.81 10/15/2015 10/15/2015 Buy 54,268.52 949917397 SHIXX WFA HERITAGE MONEY MARK-I -54,268.52 10/13/2015 10/13/2015 Buy 1,123.17 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,123.17 10/20/2015 10/20/2015 Sell -4,250.38 949917397 SHIXX WFA HERITAGE MONEY MARK-I 4,250.38 10/19/2015 10/19/2015 Buy 1,200,000.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,200,000.00 10/19/2015 10/19/2015 Buy 18,231.60 949917397 SHIXX WFA HERITAGE MONEY MARK-I -18,231.60 10/23/2015 10/23/2015 Buy 296.67 949917397 SHIXX WFA HERITAGE MONEY MARK-I -296.67 10/28/2015 10/28/2015 Buy 151.79 949917397 SHIXX WFA HERITAGE MONEY MARK-I -151.79 10/27/2015 10/27/2015 Sell -299,868.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I 299,868.00 10/26/2015 10/26/2015 Buy 1,128.21 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,128.21 10/26/2015 10/26/2015 Sell -1,000,326.80 949917397 SHIXX WFA HERITAGE MONEY MARK-I 1,000,326.80 10/31/2015 10/31/2015 Money Market Funds 0.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I 188.67 11/05/2015 11/05/2015 Sell -1,000,515.08 949917397 SHIXX WFA HERITAGE MONEY MARK-I 1,000,515.08 11/04/2015 11/04/2015 Buy 1,001,250.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,001,250.00 11/02/2015 11/02/2015 Buy 3,938.67 949917397 SHIXX WFA HERITAGE MONEY MARK-I -3,938.67 11/13/2015 11/13/2015 Buy 51,102.67 949917397 SHIXX WFA HERITAGE MONEY MARK-I -51,102.67 11/17/2015 11/17/2015 Buy 775,976.46 949917397 SHIXX WFA HERITAGE MONEY MARK-I -775,976.46 11/16/2015 11/16/2015 Buy 71,553.47 949917397 SHIXX WFA HERITAGE MONEY MARK-I -71,553.47 11/16/2015 11/16/2015 Buy 759,073.60 949917397 SHIXX WFA HERITAGE MONEY MARK-I -759,073.60 11/16/2015 11/16/2015 Buy 126,735.24 949917397 SHIXX WFA HERITAGE MONEY MARK-I -126,735.24 11/20/2015 11/20/2015 Buy 9,913.58 949917397 SHIXX WFA HERITAGE MONEY MARK-I -9,913.58 11/19/2015 11/19/2015 Buy 260,693.39 949917397 SHIXX WFA HERITAGE MONEY MARK-I -260,693.39 11/18/2015 11/18/2015 Buy 17,151.96 949917397 SHIXX WFA HERITAGE MONEY MARK-I -17,151.96 11/25/2015 11/25/2015 Sell -1,005,565.77 949917397 SHIXX WFA HERITAGE MONEY MARK-I 1,005,565.77 11/24/2015 11/24/2015 Buy 14,560.36 949917397 SHIXX WFA HERITAGE MONEY MARK-I -14,560.36 11/23/2015 11/23/2015 Buy 695.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I -695.00 11/23/2015 11/23/2015 Buy 3,125.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I -3,125.00 12/03/2015 12/03/2015 Sell -1,000,206.11 949917397 SHIXX WellsFargo:Htge MM;I 1,000,206.11 12/02/2015 12/02/2015 Buy 166.63 949917397 SHIXX WellsFargo:Htge MM;I -166.63 12/01/2015 12/01/2015 Buy 225.31 949917397 SHIXX WellsFargo:Htge MM;I -225.31 12/01/2015 12/01/2015 Sell -749,279.58 949917397 SHIXX WellsFargo:Htge MM;I 749,279.58 11/30/2015 11/30/2015 Money Market Funds 0.00 949917397 SHIXX WFA HERITAGE MONEY MARK-I 225.31 11/30/2015 11/30/2015 Buy 1,562.50 949917397 SHIXX WFA HERITAGE MONEY MARK-I -1,562.50 12/07/2015 12/07/2015 Buy 488.75 949917397 SHIXX WellsFargo:Htge MM;I -488.75 12/11/2015 12/11/2015 Buy 251,250.00 949917397 SHIXX WellsFargo:Htge MM;I -251,250.00 12/10/2015 12/10/2015 Buy 10,625.00 949917397 SHIXX WellsFargo:Htge MM;I -10,625.00 25 Page 65

MMF Transaction Detail WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Entry Date Settle Date Transaction Type Base Current Units Identifier Ticker Description Base Amount 12/08/2015 12/08/2015 Sell -649,426.47 949917397 SHIXX WellsFargo:Htge MM;I 649,426.47 12/15/2015 12/15/2015 Buy 2.89 949917397 SHIXX WellsFargo:Htge MM;I -2.89 12/15/2015 12/15/2015 Buy 159.11 949917397 SHIXX WellsFargo:Htge MM;I -159.11 12/15/2015 12/15/2015 Buy 425.00 949917397 SHIXX WellsFargo:Htge MM;I -425.00 12/18/2015 12/18/2015 Buy 3.58 949917397 SHIXX WellsFargo:Htge MM;I -3.58 12/18/2015 12/18/2015 Buy 11,005.69 949917397 SHIXX WellsFargo:Htge MM;I -11,005.69 12/17/2015 12/17/2015 Buy 14.73 949917397 SHIXX WellsFargo:Htge MM;I -14.73 12/16/2015 12/16/2015 Buy 326.67 949917397 SHIXX WellsFargo:Htge MM;I -326.67 12/16/2015 12/16/2015 Buy 7,710.68 949917397 SHIXX WellsFargo:Htge MM;I -7,710.68 12/23/2015 12/23/2015 Sell -112,240.79 949917397 SHIXX WellsFargo:Htge MM;I 112,240.79 12/21/2015 12/21/2015 Buy 949.06 949917397 SHIXX WellsFargo:Htge MM;I -949.06 12/21/2015 12/21/2015 Sell -4,089.42 949917397 SHIXX WellsFargo:Htge MM;I 4,089.42 12/31/2015 12/31/2015 Buy 2,500.00 949917397 SHIXX WellsFargo:Htge MM;I -2,500.00 12/29/2015 12/29/2015 Buy 162.22 949917397 SHIXX WellsFargo:Htge MM;I -162.22 ------239,862.29 949917397 SHIXX --- 240,276.27

Summary Entry Date Settle Date Transaction Type Base Current Units Identifier Ticker Description Base Amount ------239,862.29 949917397 SHIXX --- 240,501.65

* 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. * 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.

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Identifier, Beginning Market Base Sales, Base Paydowns Base Net Transferred Base Amortization/ Change In Accrued Net Realized Base Change In Base Change In Cash, Ending Market Value + Description Value + Accrued, Base Maturities and Value Accretion Balance Gain/Loss Net Unrealized Payables/Receivables Accrued Base Purchases Redemptions Gain/Loss 41284AAB4 108,053.54 0.00 -42,295.55 0.00 1.39 -9.21 -0.01 6.90 0.00 65,757.06 HARLY-141-A2A 0.00 0.00 43814KAB7 335,064.36 0.00 -82,034.38 0.00 4.96 -25.52 -0.01 -211.64 0.00 252,797.77 HONDO-151-A2 0.00 0.00 58768EAC3 15,634.06 0.00 -15,632.82 0.00 0.01 -3.33 -0.00 2.08 0.00 0.00 MBALT 2014-A A2A 0.00 0.00 47787VAB7 133,404.37 0.00 -133,407.57 0.00 0.40 -26.68 -0.00 29.48 0.00 0.00 JDOT-14-A2 0.00 0.00 89236WAB4 600,201.33 0.00 -104,144.54 0.00 1.41 -32.86 -0.00 -431.27 0.00 495,594.07 TART-15A-A2 0.00 0.00 949917397 1,639,290.61 -6,825,463.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,399,428.32 WellsFargo:Htge MM;I 6,585,601.09 0.00 912828B82 1,000,681.91 0.00 0.00 0.00 475.12 631.87 0.00 -1,022.12 0.00 1,000,766.78 UNITED STATES TREASURY 0.00 0.00 459058DM2 0.00 0.00 0.00 0.00 5.27 625.00 0.00 201.73 0.00 1,000,802.00 INTERNATIONAL BANK FOR 999,970.00 0.00 RECONSTRUCTION AND DEVELOP 3130A4KE1 501,090.33 0.00 0.00 0.00 19.31 -513.33 0.00 -381.81 0.00 500,214.50 FEDERAL HOME LOAN BANKS 0.00 0.00 36962G6Q2 752,339.11 0.00 0.00 0.00 -422.08 59.77 0.00 -339.17 0.00 751,637.63 GENERAL ELECTRIC CAPITAL CORP 0.00 0.00 74256LAC3 250,951.89 0.00 0.00 0.00 -273.80 -763.89 0.00 85.80 0.00 0.00 PRINCIPAL LIFE GLOBAL FUNDING II 0.00 -250,000.00 605581FW2 301,497.00 0.00 0.00 0.00 0.00 -480.00 0.00 -756.00 0.00 300,261.00 MISSISSIPPI ST 0.00 0.00 677520FR4 770,212.50 0.00 0.00 0.00 0.00 -20,212.50 0.00 0.00 0.00 0.00 OH ST-TXB-DEV ASST-A 0.00 -750,000.00 90331HMR1 450,683.80 0.00 0.00 0.00 -115.70 20.77 0.00 -2,264.35 0.00 448,324.52 US BANK NA 0.00 0.00 90331HMR1 300,455.86 0.00 0.00 0.00 0.00 13.85 0.00 -1,586.70 0.00 298,883.01 US BANK NA 0.00 0.00 857477AH6 288,328.42 0.00 0.00 0.00 -1,614.40 2,048.44 0.00 -163.71 0.00 288,598.74 STATE STREET CORP 0.00 0.00 857477AH6 303,503.60 0.00 0.00 0.00 -1,755.21 2,156.25 0.00 -116.49 0.00 303,788.15 STATE STREET CORP 0.00 0.00 06050TLU4 499,529.53 0.00 0.00 0.00 0.00 11.77 0.00 190.50 0.00 499,731.80 BANK OF AMERICA NA 0.00 0.00 3133EDGC0 1,001,166.83 0.00 0.00 0.00 122.17 -1,020.83 0.00 -268.17 0.00 0.00 FEDERAL FARM CREDIT BANK 0.00 -1,000,000.00 084664CD1 747,927.92 0.00 0.00 0.00 0.00 57.67 0.00 1,336.50 0.00 749,322.08 BERKSHIRE HATHAWAY FINANCE CORP 0.00 0.00 05531FAG8 757,584.92 0.00 0.00 0.00 -4,751.39 6,000.00 0.00 284.39 0.00 759,117.92 BB&T CORP 0.00 0.00 3133EFBT3 1,000,597.00 0.00 0.00 0.00 50.27 1,050.00 0.00 -1,363.27 0.00 1,000,334.00 FEDERAL FARM CREDIT BANKS 0.00 0.00 FUNDING CORP 70659PAE1 750,064.26 0.00 -750,000.00 0.00 0.00 -163.26 0.00 99.00 0.00 0.00 PENAR 2013-1A A1 0.00 0.00 161571GJ7 777,719.56 0.00 0.00 0.00 -252.14 0.00 0.00 -2,670.54 0.00 774,796.88 CHAIT 2014-A1 A1 0.00 0.00 03255LGX1 754,017.50 0.00 0.00 0.00 0.00 -1,875.00 0.00 -682.50 0.00 751,460.00 ANAHEIM CALIF PUB FING AUTH LEASE 0.00 0.00 REV 912828QX1 1,012,058.17 0.00 0.00 0.00 -2,674.02 3,750.00 0.00 -1,817.98 0.00 1,011,316.17 UNITED STATES TREASURY 0.00 0.00 4197915E4 752,196.25 0.00 0.00 0.00 0.00 1,370.63 0.00 -937.50 0.00 752,629.38 HAWAII ST 0.00 0.00 912828SY7 0.00 0.00 0.00 0.00 81.60 273.22 0.00 -1,468.29 0.00 498,066.22 UNITED STATES TREASURY 499,179.69 0.00

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Roll Forward WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier, Beginning Market Base Sales, Base Paydowns Base Net Transferred Base Amortization/ Change In Accrued Net Realized Base Change In Base Change In Cash, Ending Market Value + Description Value + Accrued, Base Maturities and Value Accretion Balance Gain/Loss Net Unrealized Payables/Receivables Accrued Base Purchases Redemptions Gain/Loss 89233AHP7 499,980.13 0.00 0.00 0.00 0.00 15.12 0.00 -46.50 0.00 499,948.74 Toyota Motor Credit Corporation 0.00 0.00 3130A3J70 1,003,698.22 0.00 0.00 0.00 -353.08 -1,562.50 0.00 -3,081.92 0.00 998,700.72 FEDERAL HOME LOAN BANKS 0.00 0.00 097023BC8 785,805.63 0.00 0.00 0.00 -5,422.32 -7,031.25 0.00 -2,441.43 0.00 770,910.63 BOEING CO 0.00 0.00 90290XAB3 481,151.25 0.00 0.00 0.00 1.97 0.00 0.00 -1,717.78 0.00 479,435.45 USAOT-151-A2 0.00 0.00 89116EC19 0.00 0.00 0.00 0.00 245.42 0.00 0.00 -89.25 0.00 749,435.75 Toronto Dominion Holdings (U.S.A.), Inc. 749,279.58 0.00 928668AD4 492,603.80 0.00 0.00 0.00 0.00 33.90 0.00 4,142.50 0.00 496,780.20 VOLKSWAGEN GROUP OF AMERICA 0.00 0.00 FINANCE LLC 912828VL1 1,003,694.73 0.00 0.00 0.00 -674.92 1,562.50 0.00 -1,617.08 0.00 1,002,965.23 UNITED STATES TREASURY 0.00 0.00 89116FYH7 349,929.07 0.00 0.00 0.00 146.22 0.00 0.00 -75.29 0.00 0.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 -350,000.00 89116FYH7 349,929.07 0.00 0.00 0.00 137.08 0.00 0.00 -66.15 0.00 0.00 Toronto Dominion Holdings (U.S.A.), Inc. 0.00 -350,000.00 3137EACW7 0.00 0.00 0.00 0.00 -127.40 1,645.00 0.00 115.18 0.00 238,536.28 FREDDIE MAC 236,903.50 0.00 CCYUSD 107.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 118.38 225.38 Receivable 0.00 0.00 CCYUSD 0.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -10.52 -9.65 Cash 0.00 0.00 CCYUSD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Payable 0.00 0.00 3130A2T97 0.00 0.00 0.00 0.00 -241.38 1,291.67 0.00 -2,593.62 0.00 999,536.67 FEDERAL HOME LOAN BANKS 1,001,080.00 0.00 3130A2T97 500,401.83 0.00 0.00 0.00 -104.89 625.00 0.00 -1,153.61 0.00 499,768.33 FEDERAL HOME LOAN BANKS 0.00 0.00 76912TJC8 125,112.92 0.00 0.00 0.00 93.10 312.50 0.00 -193.10 0.00 125,325.42 RIVERSIDE CNTY CALIF PUB FING AUTH 0.00 0.00 TAX ALLOC REV 36164EAB1 400,489.91 0.00 -400,000.00 0.00 29.25 -79.11 0.00 -440.05 0.00 0.00 GEETT-151-A2 0.00 0.00 912828RF9 1,006,437.65 0.00 0.00 0.00 -1,421.41 2,527.47 0.00 -2,133.59 0.00 1,005,410.12 UNITED STATES TREASURY 0.00 0.00 912828RF9 0.00 0.00 0.00 0.00 -423.27 3,379.12 0.00 -748.86 0.00 1,005,410.12 UNITED STATES TREASURY 1,003,203.13 0.00 912828WQ9 1,002,982.59 0.00 0.00 0.00 -103.38 -1,249.85 0.00 -1,849.62 0.00 999,779.74 UNITED STATES TREASURY 0.00 0.00 46625HHW3 758,135.92 0.00 0.00 0.00 -3,267.41 4,875.00 0.00 -438.34 0.00 759,305.17 JPMORGAN CHASE & CO 0.00 0.00 58772PAB4 0.00 0.00 0.00 0.00 41.87 236.89 0.00 -619.17 0.00 648,745.53 MBART-151-A2A 649,085.94 0.00 69371RK96 205,543.86 0.00 0.00 0.00 -62.39 -538.13 0.00 56.65 0.00 0.00 PACCAR FINANCIAL CORP 0.00 -205,000.00 69371RK96 501,326.50 0.00 0.00 0.00 -183.60 -1,312.50 0.00 169.60 0.00 0.00 PACCAR FINANCIAL CORP 0.00 -500,000.00 3136FPET0 1,008,728.67 0.00 0.00 0.00 -4,195.20 5,000.00 0.00 -51.80 0.00 1,009,481.67 FEDERAL NATIONAL MORTGAGE 0.00 0.00 ASSOCIATION 313384SS9 999,397.00 0.00 0.00 0.00 638.89 0.00 0.00 -257.89 0.00 999,778.00 FEDERAL HOME LOAN BANKS 0.00 0.00 459056HY6 770,331.54 0.00 0.00 0.00 867.76 0.00 0.00 -331.91 0.00 770,867.39 INTERNATIONAL BANK FOR 0.00 0.00 RECONSTRUCTION AND DEVELOP

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Roll Forward WC-Contra Costa County (19529) Base Currency: USD 10/01/2015 - 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier, Beginning Market Base Sales, Base Paydowns Base Net Transferred Base Amortization/ Change In Accrued Net Realized Base Change In Base Change In Cash, Ending Market Value + Description Value + Accrued, Base Maturities and Value Accretion Balance Gain/Loss Net Unrealized Payables/Receivables Accrued Base Purchases Redemptions Gain/Loss 459056HY6 162,858.68 0.00 0.00 0.00 206.96 0.00 0.00 -93.67 0.00 162,971.96 INTERNATIONAL BANK FOR 0.00 0.00 RECONSTRUCTION AND DEVELOP 45905U7F5 998,187.50 0.00 0.00 0.00 0.00 1,125.00 0.00 -4,300.00 0.00 995,012.50 INTERNATIONAL BK FOR RECON & DEV 0.00 0.00 MEDIUM TERM BK N 3133EDQW5 1,001,016.89 0.00 0.00 0.00 225.72 725.00 0.00 -667.72 0.00 1,001,299.89 FEDERAL FARM CREDIT BANKS 0.00 0.00 FUNDING CORP 69349LAH1 751,559.25 0.00 0.00 0.00 -649.09 1,500.00 0.00 127.09 0.00 752,537.25 PNC BANK,NA 0.00 0.00 3133EDXG2 1,003,280.06 -1,000,000.00 0.00 0.00 -36.62 -3,108.06 0.00 -135.38 0.00 0.00 FEDERAL FARM CREDIT BANK 0.00 0.00 17275RAY8 746,934.50 0.00 0.00 0.00 0.00 93.38 0.00 1,689.00 0.00 748,716.88 CISCO SYSTEMS INC 0.00 0.00 06406HBX6 762,629.25 0.00 0.00 0.00 -3,113.72 4,312.50 0.00 -147.28 0.00 763,680.75 BANK OF NEW YORK MELLON CORP 0.00 0.00 313384ZK8 0.00 0.00 0.00 0.00 76.25 0.00 0.00 106.06 0.00 498,445.50 FEDERAL HOME LOAN BANKS 498,263.19 0.00 3130A3XU3 1,000,547.22 0.00 0.00 0.00 33.22 625.00 0.00 -50.22 0.00 1,001,155.22 FEDERAL HOME LOAN BANKS 0.00 0.00 762494QV7 250,929.17 0.00 0.00 0.00 0.00 786.25 0.00 -740.00 0.00 250,975.42 RIALTO CALIF UNI SCH DIST 0.00 0.00 68428LDH4 300,820.67 0.00 0.00 0.00 0.00 510.00 0.00 -447.00 0.00 300,883.67 ORANGE CNTY CALIF PENSION OBLIG 0.00 0.00 68428LDH4 491,340.42 0.00 0.00 0.00 0.00 833.00 0.00 -730.10 0.00 491,443.32 ORANGE CNTY CALIF PENSION OBLIG 0.00 0.00 912828TS9 0.00 0.00 0.00 0.00 11.14 1,588.11 0.00 -6,807.95 0.00 994,674.11 UNITED STATES TREASURY 999,882.81 0.00 06050TMB5 249,486.65 0.00 0.00 0.00 0.00 31.69 0.00 -197.25 0.00 249,321.10 BANK OF AMERICA NA 0.00 0.00 5446462Q4 400,738.00 0.00 0.00 0.00 0.00 486.00 0.00 -252.00 0.00 400,972.00 LOS ANGELES CALIF UNI SCH DIST 0.00 0.00 313373SZ6 1,018,359.08 0.00 0.00 0.00 -4,062.30 -5,312.50 0.00 -1,292.70 0.00 1,007,691.58 FEDERAL HOME LOAN BANKS 0.00 0.00 31680GAB2 0.00 0.00 0.00 0.00 1.47 226.67 0.00 -1,190.17 0.00 499,024.32 FTAT-151-A2A 499,986.35 0.00 43814GAB6 45,509.70 0.00 -45,521.00 0.00 0.48 -6.41 0.00 17.23 0.00 0.00 HONDO-142-A2 0.00 0.00 91412GUT0 250,941.28 0.00 0.00 0.00 0.00 -396.25 0.00 -250.00 0.00 250,295.03 UNIVERSITY CALIF REVS 0.00 0.00 47787WAB5 400,375.96 0.00 0.00 0.00 2.14 -65.33 0.00 -1,060.18 0.00 399,252.58 JDOT-15B-A2 0.00 0.00 02665WAY7 500,080.99 0.00 0.00 0.00 0.00 94.42 0.00 -563.50 0.00 499,611.92 AMERICAN HONDA FINANCE CORP 0.00 0.00 191216BR0 0.00 0.00 0.00 0.00 11.92 466.67 0.00 -997.72 0.00 299,348.87 COCA-COLA CO 299,868.00 0.00 437076BJ0 751,401.98 0.00 0.00 0.00 0.00 76.64 0.00 -61.50 0.00 751,417.13 HOME DEPOT INC 0.00 0.00 912828PS3 1,009,697.57 0.00 0.00 0.00 -4,222.16 5,000.00 0.00 -885.84 0.00 1,009,589.57 UNITED STATES TREASURY 0.00 0.00 912828PS3 1,009,697.57 0.00 0.00 0.00 -4,183.63 5,000.00 0.00 -924.37 0.00 1,009,589.57 UNITED STATES TREASURY 0.00 0.00 14912L4X6 786,489.12 0.00 0.00 0.00 -2,727.56 3,971.88 0.00 -1,368.31 0.00 786,365.12 CATERPILLAR FINANCIAL SERVICES 0.00 0.00 CORP 544587B72 0.00 0.00 0.00 0.00 0.00 720.30 0.00 837.90 0.00 491,558.20 LOS ANGELES CALIF MUN IMPT CORP 490,000.00 0.00 LEASE REV

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* Weighted By: Ending Base Market Value + Accrued.

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Shock Analysis WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Description Security Type Base Market Value Book Yield Duration -200 Basis Point -100 Basis Point -50 Basis Point 50 Basis Point 100 Basis Point 200 Basis Point Yield Shock Shock Shock Shock Shock Shock 02665WAY7 AMERICAN HONDA FINANCE CORP CORP 499,442.00 1.036 1.676 0.214 501,233.39 500,510.83 499,976.41 498,907.60 498,373.21 497,304.49 03255LGX1 ANAHEIM CALIF PUB FING AUTH LEASE MUNI 750,210.00 1.00 0.943 0.34 752,615.42 752,615.42 751,485.39 748,934.67 747,659.40 745,109.02 REV 05531FAG8 BB&T CORP CORP 752,051.25 0.662 0.973 0.168 753,269.80 753,269.80 752,680.12 751,416.68 750,776.41 749,478.78 06050TLU4 BANK OF AMERICA NA CORP 499,200.50 0.846 1.724 0.117 500,207.50 499,784.59 499,492.54 498,908.47 498,616.46 498,032.47 06050TMB5 BANK OF AMERICA NA CORP 249,164.50 0.916 1.852 0.173 249,962.86 249,595.57 249,380.03 248,948.98 248,733.46 248,302.44 06406HBX6 BANK OF NEW YORK MELLON CORP CORP 756,349.50 0.644 0.831 0.57 759,932.26 759,932.26 758,505.15 754,193.96 752,038.53 747,728.02 084664CD1 BERKSHIRE HATHAWAY FINANCE CORP 748,287.75 0.63 1.588 0.025 748,584.82 748,474.82 748,381.29 748,194.21 748,100.67 747,913.61 CORP 097023BC8 BOEING CO CORP 767,707.50 0.849 1.008 0.875 774,479.15 774,425.40 771,066.34 764,348.89 760,990.52 754,274.46 14912L4X6 CATERPILLAR FINANCIAL SERVICES CORP 779,745.32 0.643 1.005 0.578 784,275.02 784,252.49 781,998.85 777,491.92 775,238.63 770,732.40 CORP 161571GJ7 CHAIT 2014-A1 A1 ABS 774,400.77 1.022 1.236 1.029 784,250.89 782,369.97 778,385.21 770,416.63 766,432.81 758,466.08 17275RAY8 CISCO SYSTEMS INC CORP 748,425.75 0.834 1.662 0.199 750,901.18 749,915.15 749,170.44 747,681.08 746,936.42 745,447.17 191216BR0 COCA-COLA CO CORP 298,882.20 0.897 1.089 1.802 304,748.14 304,268.68 301,575.29 296,189.43 293,496.97 288,113.00 3130A2T97 FEDERAL HOME LOAN BANKS AGCY BOND 1,497,367.50 0.396 0.727 0.74 1,505,423.39 1,505,423.39 1,502,907.93 1,491,827.41 1,486,287.65 1,475,209.16 3130A3J70 FEDERAL HOME LOAN BANKS AGCY BOND 998,041.00 0.484 0.822 0.892 1,005,359.28 1,005,359.28 1,002,492.41 993,589.89 989,139.07 980,238.34 3130A3XU3 FEDERAL HOME LOAN BANKS AGCY BOND 1,000,058.00 0.263 0.144 0.064 1,000,150.17 1,000,150.17 1,000,150.17 999,737.98 999,417.96 998,777.93 3130A4KE1 FEDERAL HOME LOAN BANKS AGCY BOND 499,802.00 0.345 0.466 0.252 500,388.94 500,388.94 500,388.94 499,172.26 498,542.55 497,283.20 313373SZ6 FEDERAL HOME LOAN BANKS AGCY BOND 1,006,452.00 0.50 0.647 0.443 1,009,336.79 1,009,336.79 1,008,681.34 1,004,222.76 1,001,993.61 997,535.64 313384SS9 FEDERAL HOME LOAN BANKS AGCY DISC 999,778.00 0.254 0.243 0.097 1,000,013.66 1,000,013.66 1,000,013.66 999,293.12 998,808.27 997,838.63 313384ZK8 FEDERAL HOME LOAN BANKS AGCY DISC 498,445.50 0.622 0.588 0.54 500,028.22 500,028.22 499,791.34 497,099.73 495,754.04 493,062.89 3133EDQW5 FEDERAL FARM CREDIT BANKS AGCY BOND 1,000,011.00 0.38 0.278 0.058 1,000,172.24 1,000,172.24 1,000,172.24 999,721.00 999,430.99 998,850.99 FUNDING CORP 3133EFBT3 FEDERAL FARM CREDIT BANKS AGCY BOND 998,934.00 0.44 0.572 0.666 1,002,739.59 1,002,739.59 1,002,260.55 995,607.65 992,281.49 985,629.80 FUNDING CORP 3136FPET0 FEDERAL NATIONAL MORTGAGE AGCY BOND 1,003,315.00 0.326 0.226 0.194 1,003,754.90 1,003,754.90 1,003,754.90 1,002,341.80 1,001,368.61 999,422.34 ASSOCIATION 3137EACW7 FREDDIE MAC AGCY BOND 236,891.28 0.827 0.706 0.646 237,971.73 237,971.73 237,656.46 236,126.14 235,361.05 233,830.98 31679KAB6 FTAT-142-A2A ABS 86,683.38 0.456 1.00 0.079 86,751.87 86,751.87 86,717.62 86,649.14 86,614.91 86,546.44 31680GAB2 FTAT-151-A2A ABS 498,797.65 1.024 1.344 0.767 503,939.95 502,623.68 500,710.60 496,884.82 494,972.12 491,147.09 36962G6Q2 GENERAL ELECTRIC CAPITAL CORP CORP 750,012.00 0.712 0.948 0.022 750,168.42 750,168.42 750,094.50 749,929.50 749,847.00 749,681.99 41284AAB4 HARLY-141-A2A ABS 65,742.73 0.494 0.941 0.202 65,867.70 65,867.70 65,809.13 65,676.33 65,609.94 65,477.16 41284BAB2 HARLY-151-A2A ABS 318,876.26 0.80 1.103 0.559 320,842.51 320,658.89 319,767.55 317,985.03 317,093.85 315,311.67 4197915E4 HAWAII ST MUNI 750,345.00 0.731 0.68 0.588 753,345.28 753,345.28 752,551.07 748,139.04 745,933.20 741,521.84 437076BJ0 HOME DEPOT INC CORP 751,104.75 0.896 1.439 0.203 753,298.93 752,629.53 751,867.13 750,342.39 749,580.04 748,055.42 43814KAB7 HONDO-151-A2 ABS 252,719.07 0.706 1.015 0.311 253,516.86 253,505.07 253,112.06 252,326.11 251,933.16 251,147.31 459056HY6 INTERNATIONAL BANK FOR SOVEREIGN 933,839.35 0.462 0.158 0.125 934,023.79 934,023.79 934,023.79 933,255.71 932,672.10 931,504.94 RECONSTRUCTION AND DEVELOP GOV 459058DM2 INTERNATIONAL BANK FOR SOVEREIGN 1,000,177.00 0.507 0.428 0.377 1,001,790.87 1,001,790.87 1,001,790.87 998,291.70 996,406.48 992,636.27 RECONSTRUCTION AND DEVELOP GOV 45905U7F5 INTERNATIONAL BK FOR RECON & DEV SOVEREIGN 992,700.00 0.45 1.783 0.547 1,002,382.76 998,130.37 995,415.11 989,985.04 987,270.23 981,841.05 MEDIUM TERM BK N GOV 46625HHW3 JPMORGAN CHASE & CO CORP 750,313.50 0.86 1.473 0.041 750,766.64 750,621.13 750,467.31 750,159.69 750,005.87 749,698.24 47787WAB5 JDOT-15B-A2 ABS 399,078.36 0.983 1.258 0.857 403,381.23 402,498.70 400,788.47 397,368.37 395,658.50 392,239.11 544587B72 LOS ANGELES CALIF MUN IMPT CORP MUNI 490,837.90 1.26 1.082 0.838 495,288.72 494,951.39 492,894.58 488,781.36 486,724.95 482,612.54 LEASE REV 5446462Q4 LOS ANGELES CALIF UNI SCH DIST MUNI 400,000.00 0.486 0.306 0.008 400,009.79 400,009.79 400,009.79 399,984.00 399,968.00 399,936.00 58772PAB4 MBART-151-A2A ABS 648,508.64 1.007 1.161 0.689 653,696.64 652,977.16 650,742.83 646,274.60 644,040.71 639,573.36 605581FW2 MISSISSIPPI ST MUNI 299,781.00 0.64 0.767 0.754 301,514.77 301,514.77 300,911.21 298,650.86 297,520.79 295,260.84 65477WAB2 NART-14B-A2 ABS 396,218.12 0.606 0.901 0.229 397,035.66 397,035.66 396,671.80 395,764.46 395,310.82 394,403.60 68428LDH4 ORANGE CNTY CALIF PENSION OBLIG MUNI 790,118.50 0.68 0.488 0.093 790,477.10 790,477.10 790,477.10 789,751.10 789,383.73 788,649.04 69349LAH1 PNC BANK,NA CORP 749,987.25 0.439 0.826 0.08 750,482.87 750,482.87 750,287.25 749,687.26 749,387.30 748,787.42

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Shock Analysis WC-Contra Costa County (19529) Base Currency: USD As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

Identifier Description Security Type Base Market Value Book Yield Duration -200 Basis Point -100 Basis Point -50 Basis Point 50 Basis Point 100 Basis Point 200 Basis Point Yield Shock Shock Shock Shock Shock Shock 762494QV7 RIALTO CALIF UNI SCH DIST MUNI 249,665.00 1.258 1.412 1.078 253,465.66 252,356.60 251,010.75 248,319.36 246,973.82 244,283.07 76912TJC8 RIVERSIDE CNTY CALIF PUB FING MUNI 124,908.75 1.301 1.139 0.67 125,862.03 125,745.69 125,327.21 124,490.32 124,071.91 123,235.17 AUTH TAX ALLOC REV 857477AH6 STATE STREET CORP CORP 587,060.95 0.573 0.945 0.185 588,087.31 588,087.31 587,603.99 586,517.93 585,974.92 584,888.95 89116EC19 Toronto Dominion Holdings (U.S.A.), Inc. CP 749,435.75 0.381 0.455 0.169 750,012.04 750,012.04 750,012.04 748,802.49 748,169.24 746,902.81 89233AHP7 Toyota Motor Credit Corporation CD 499,918.50 0.592 0.704 0.101 500,273.97 500,273.97 500,170.97 499,666.05 499,413.61 498,908.76 89236WAB4 TART-15A-A2 ABS 495,437.60 0.711 0.971 0.326 497,005.96 497,005.96 496,245.18 494,630.06 493,822.55 492,207.64 90290XAB3 USAOT-151-A2 ABS 479,260.51 0.825 1.08 0.612 482,428.43 482,193.75 480,727.09 477,794.02 476,327.61 473,395.03 90331HMR1 US BANK NA CORP 746,342.25 0.568 1.716 0.06 747,110.68 746,790.06 746,566.15 746,118.35 745,894.44 745,446.64 912828B82 UNITED STATES TREASURY US GOV 999,922.00 0.44 0.25 0.169 1,000,344.47 1,000,344.47 1,000,344.47 999,077.08 998,232.18 996,542.46 912828PS3 UNITED STATES TREASURY US GOV 2,002,440.00 0.325 0.468 0.086 2,003,245.96 2,003,245.96 2,003,245.96 2,001,578.98 2,000,718.00 1,998,996.20 912828QX1 UNITED STATES TREASURY US GOV 1,005,039.00 0.434 0.618 0.581 1,008,647.79 1,008,647.79 1,007,958.71 1,002,119.44 999,200.03 993,361.65 912828RF9 UNITED STATES TREASURY US GOV 2,004,062.00 0.505 0.677 0.665 2,013,084.75 2,013,084.75 2,010,725.71 1,997,398.69 1,990,735.79 1,977,411.18 912828SY7 UNITED STATES TREASURY US GOV 497,793.00 0.73 0.959 1.408 504,515.18 504,515.18 501,297.63 494,288.71 490,784.75 483,777.84 912828TS9 UNITED STATES TREASURY US GOV 993,086.00 0.631 1.047 1.734 1,011,117.58 1,010,308.05 1,001,696.54 984,476.43 975,867.83 958,653.52 912828VL1 UNITED STATES TREASURY US GOV 1,000,078.00 0.356 0.589 0.539 1,003,253.06 1,003,253.06 1,002,773.29 997,382.86 994,687.88 989,298.36 912828WQ9 UNITED STATES TREASURY US GOV 999,766.00 0.459 0.516 0.50 1,002,345.46 1,002,345.46 1,002,265.48 997,266.65 994,767.42 989,769.34 91412GUT0 UNIVERSITY CALIF REVS MUNI 250,092.50 0.634 0.562 0.377 250,622.39 250,622.39 250,563.93 249,621.08 249,149.69 248,206.95 928668AD4 VOLKSWAGEN GROUP OF AMERICA CORP 496,456.50 0.602 2.706 0.147 497,916.18 497,186.32 496,821.40 496,091.61 495,726.73 494,997.02 FINANCE LLC 949917397 WellsFargo:Htge MM;I MMFUND 1,399,428.32 0.00 0.00 0.00 1,399,428.32 1,399,428.32 1,399,428.32 1,399,428.32 1,399,428.32 1,399,428.32 CCYUSD Receivable CASH 225.38 0.00 0.00 0.00 225.38 225.38 225.38 225.38 225.38 225.38 CCYUSD Cash CASH -9.65 0.00 0.00 0.00 -9.65 -9.65 -9.65 -9.65 -9.65 -9.65 ------44,269,211.16 0.575 0.817 0.423 44,437,364.65 44,420,480.78 44,360,477.31 44,175,542.92 44,081,874.96 43,894,539.82

* Weighted By: Base Market Value + Accrued. *The shock analysis includes a yield floor of 0.

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Disclaimer As of 12/31/2015 Return to Table of Contents Dated: 01/11/2016

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 time periods. 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.

33 CONTRA COSTA COUNTY Page 73 STATEMENT FOR PERIOD December 01, 2015 - December 31, 2015

CalTrust Short Term Fund 201-000004-10 Price Per Average Average Realized Date Transaction Shares Amount Share Cost NAV Cost Amount Gain/Loss*

11/30/2015 BALANCE FORWARD 14,831,410.670 10.02 148,610,734.91 10.02430832 148,674,633.43 12/31/2015 UNREALIZED GAIN (LOSS) 0.000 -148,314.10 0.00 12/31/2015 ENDING BALANCE 14,831,410.670 10.01 148,462,420.81 148,674,633.43

INCOME DISTRIBUTION PAID - NOVEMBER 57,839.82 INCOME ACCRUAL - DECEMBER 69,464.48 CUMULATIVE UNREALIZED GAIN (LOSS) -212,212.62

* Please note that this information should not be construed as tax advice and it is recommended that you consult with a tax professional regarding your account.

For Inquiries About Your Account, Contact: CONTRA COSTA COUNTY CONTRA COSTA COUNTY Nottingham Investment Administration 116 South Franklin Street ATTN: BELINDA ZHU Rocky Mount, NC 27804 625 COURT STREET Attention: CalTRUST Shareholder Services ROOM 102 Phone: 800.773.3863 MARTINEZ CA 94553-1281 Fax: 252-972-1908 Email: [email protected] Page 1 of 1 CaltrustPage Short 74 Term Fund MONTH END PORTFOLIO STATISTICS December 31, 2015

CalTrust LAIF CalTrust CalTrust LAIF Yield Short Term Short Term Short Term Return Total Return Yield Return Market Value $1,018,427,217.39 N/A NAV per Share $10.01 N/A One Month -0.03% 0.05% 0.03% Yield 0.56% 0.41% Three Month -0.01% 0.13% 0.09% Period Total Return -0.03% N/A Six Month 0.12% 0.26% 0.18% Period Yield Return 0.05% 0.03% One Year* 0.39% 0.49% 0.32% Effective Duration 0.48 yrs. N/A Two Year* 0.34% 0.44% 0.28% Average Maturity 0.96 yrs. 0.49 yrs. Three Year* 0.36% 0.41% 0.28% Five Year* 0.41% 0.44% 0.32% Ten Year* 1.71% 1.69% 1.64% Since Inception* 1.84% 1.82% 1.76% *Annualized

Portfolio Sector Breakdown Portfolio Quality Breakdown

AA+ 28.3% US Govt Agency 30.8% AAA 27.4% Corporate 29.6% A 14.5% Muni 14.2% AA- 7.3% MBS/ABS 13.9% AA 6.6% MONEYMKT 4.9% A-1+ 6.4% SupraNational 4.5% A- 5.1% COMPAPER 2.1% A+ 3.9% Total: 100.0% SP-1+ 0.4% Total: 100.0%

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. CalTrust Portal

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GE051116 36962G2V5 GENERAL ELEC CAP CORP 05/11/2016 AA+ 5/11/2016 0.4 4,635,000.00 100.0004 $4,635,018.54 SO041516 373334JV4 GEORGIA POWER COMPAN Y 4/15/2016 3% A- 4/15/2016 0.3 4,395,000.00 100.5550 $4,419,392.25 GS020716 38143USC6 GOLDMAN SACHS GROUP INC 3.625% 2/7/16 A 2/7/2016 0.2 5,000,000.00 100.2535 $5,012,675.00 HD011519 41284CAB0 HARLEY-DAVIDSON 0.8% 01/15/19 AAA 1/15/2019 3.1 4,539,618.31 99.6772 $4,524,964.42 Au122117 43813JAC9 HAROT 2014-1 A3 12/21/2017 0.67% AAA 11/21/2017 1.9 3,969,346.52 99.8202 $3,962,209.63 Au071717 43814KAB7 HAROT 2015-1 A2 7/17/2017 0.7% AAA 6/15/2017 1.5 4,104,083.92 99.9025 $4,100,082.44 HI080116 4197915E4 HAWAII-TXBL-REF-ES 8/1/2016 0.731% 8/1/2016 0.7 14,250,000.00 100.0460 $14,256,555.00 Au071618 41283YAC1 HDMOT 2013-1 A3 7/16/2018 0.65% Aaa 7/16/2018 2.6 549,796.54 99.9056 $549,277.54 Au011519 41284BAB2 HDMOT 2015-1 A2A 1/15/2019 0.95% AAA 1/15/2019 3.1 8,240,631.66 99.8347 $8,227,009.90 HA072318 43814LAB5 HONDA AUTO RECEIV- ABLES 07/23/18 AAA 7/23/2018 2.6 2,100,000.00 99.7313 $2,094,357.30 HA082117 43813NAB2 HONDA AUTO RECEIV- ABLES 08/21/2017 AAA 8/21/2017 1.7 2,000,000.00 99.8578 $1,997,156.00 HS011916 40429CFN7 HSBC FINANCE CORP SR NT 01/19/2016 5.5% A 1/19/2016 0.1 6,185,000.00 100.1639 $6,195,137.22 HB080718 40428HPW6 HSBC USA INC 8/7/2018 1.0809% A 8/7/2018 2.7 2,000,000.00 99.9232 $1,998,464.00 HB111317 40428HPM8 HSBC USA INC 11/13/2017 0.57185% A 11/13/2017 1.9 7,955,000.00 99.1755 $7,889,411.03 IB072216 459200GX3 IBM CORP 7/22/2016 1.95% AA- 7/22/2016 0.6 12,450,000.00 100.5981 $12,524,463.45 ID010117 45656TAQ1 INDUSTRY PUB FACS-A 1/1/2017 1.764% AA 1/1/2017 1.1 7,700,000.00 100.5410 $7,741,657.00 IA101816 4581X0BS6 INTER-AMERICAN DEVEL BK 10/18/2016 1.375 Aaa 10/18/2016 0.8 15,000,000.00 100.5625 $15,084,375.00 IN070116 45884AZN6 INTERMOUNTAIN PWR-B 7/1/2016 0.785% A+ 7/1/2016 0.6 6,000,000.00 99.9970 $5,999,820.00 IB051616 459058DM2 INTERNATIONAL BANK F OR RECONSTR 05/16/16 AAA 5/16/2016 0.4 20,000,000.00 100.0177 $20,003,540.00 KO112316 45950KBQ2 INTERNATIONAL FINANC E CORPORATI 11/23/16 AAA 11/23/2016 0.9 10,000,000.00 100.0958 $10,009,580.00 IB071916 45905U7F5 INTL BK RECONVE LOP & D 07/19/2016E 0.45% AAA 7/19/2016 0.6 500,000.00 99.8090 $499,045.00 IB091516 459058BS1 INTL BK RECON & DEVE LOP 9/15/2016 1% AAA 9/15/2016 0.8 15,000,000.00 100.2699 $15,040,485.00 IB101416 459058DS9 INTL BK RECON & DEVE LOP 10/14/2016 0.62 AAA 10/14/2016 0.8 10,000,000.00 99.9776 $9,997,760.00 Ot021518 47787UAB9 JDOT 2015-A A2A 2/15/2018 0.87% AAA 2/15/2018 2.2 6,628,442.57 99.8682 $6,619,706.28 Ot061518 47787WAB5 JDOT 2015-B A2 06/15/2018 0.98% Aaa 6/15/2018 2.5 4,500,000.00 99.7696 $4,489,632.00 DC011618 24422ESU4 JOHN DEERE CAPITAL C ORP 1/16/2018 0.543 A 1/16/2018 2.1 12,165,000.00 99.6294 $12,119,916.51 JP061316 48121CJM9 JP MORGAN CHASE BANK NA 6/13/2016 0.6101 A- 6/13/2016 0.5 6,650,000.00 99.8514 $6,640,118.10 JP011516 46625HHW3 JPMORGAN CHASE & CO 2.6% 1/15/16 A- 1/15/2016 0.1 2,000,000.00 100.0418 $2,000,836.00 JP021517 46623EJZ3 JPMORGAN CHASE & CO 2/15/2017 0.750933% A- 2/15/2017 1.2 1,500,000.00 99.9346 $1,499,019.00 JP030116 46625HHX1 JPMORGAN CHASE & CO 3/1/2016 3.45% A- 3/1/2016 0.2 4,000,000.00 100.4172 $4,016,688.00 JP070516 46625HJA9 JPMORGAN CHASE & CO 7/5/2016 3.15% A- 7/5/2016 0.6 1,500,000.00 101.0337 $1,515,505.50 KE112516 49327M2E3 KEY BANK NA 11/25/2016 0.7516% A- 11/25/2016 0.9 8,000,000.00 100.0012 $8,000,096.00 LD080116 54465AFK3 LA CO REDEV-B-TXBL 8/1/2016 1.074% AA- 8/1/2016 0.7 5,735,000.00 99.9400 $5,731,559.00 LO110116 544587B72 LOS ANGELES CALIF MU N IMPT CORP 11/01/16 A+ 11/1/2016 0.9 10,965,000.00 100.1710 $10,983,750.15 LA070116 5446462D3 LOS ANGELES SD-L-TXB L 7/1/2016 0.68% AA- 7/1/2016 0.6 1,000,000.00 100.0630 $1,000,630.00 LO010116 5446462Q4 LOS ANGELES SD-L-TXB L 1/1/2016 0.486% AA- 1/1/2016 0.1 1,980,000.00 100.0000 $1,980,000.00 MA090116 562785LC7 MANHATTAN BEACH CA .856% 9/1/16 AA 9/1/2016 0.8 1,405,000.00 100.1160 $1,406,629.80 MA072517 55279HAH3 MANUF & TRADERS TRUS T CO 7/25/2017 0.53 A 7/25/2017 1.6 5,000,000.00 99.6877 $4,984,385.00 AB021517 58768LAB9 MBALT 2015-A A2A 2/15/2017 0.78% AAA 2/15/2017 1.2 2,325,918.83 99.9688 $2,325,193.14 Au011618 58769AAB2 MBALT 2015-B A2A 1% 01/16/18 AAA 1/16/2018 2.1 10,000,000.00 99.7584 $9,975,840.00 Au021517 587729AB0 MBART 2014-1 A2 2/15/2017 0.43% AAA 2/15/2017 1.2 258,728.97 99.9572 $258,618.24 MB061518 58772PAB4 MERCEDES BENZ AUTO R ECEIVABLES 06/15/18 AAA 6/15/2018 2.5 2,050,000.00 99.7706 $2,045,297.30 MI100116 605581FW2 MISSISSIPPI ST-B-TXB L 10/1/2016 0.64% AA 10/1/2016 0.8 2,780,000.00 99.9270 $2,777,970.60 MS100116 605581EP8 MISSISSIPPI ST-D-REF 10/1/2016 0.64% AA 10/1/2016 0.8 2,520,000.00 99.9410 $2,518,513.20 MO010518 61761JVN6 MORGAN STANLEY 1/5/2018 1.007098% A 1/5/2018 2.1 7,938,000.00 99.9179 $7,931,482.90 MS042916 61747YDD4 MORGAN STANLEY 3.8% 04/29/16 A 4/29/2016 0.3 2,000,000.00 100.8465 $2,016,930.00 UN060616 90520EAC5 MUFG UNION BANK NA 6/6/2016 3% A+ 6/6/2016 0.5 680,000.00 100.9191 $686,249.88 Au041717 65490BAB1 NALT 2014-B A2A 4/17/2017 0.73% AAA 4/17/2017 1.3 5,152,745.41 99.8590 $5,145,480.03 Au061517 65477WAB2 NAROT 2014-B A2 6/15/2017 0.6% Aaa 6/15/2017 1.5 2,048,536.75 99.9312 $2,047,127.35 Au091517 65477UAB6 NAROT 2015-A A2 9/15/2017 0.67% AAA 9/15/2017 1.8 4,678,962.20 99.8938 $4,673,993.15 CM040116 63946BAC4 NBCUNIVERSAL MEDIA L LC 4/1/2016 2.875% A- 4/1/2016 0.3 2,000,000.00 100.4883 $2,009,766.00 NE010116 63968AXN0 NE PUB PWR DIST-B 1/1/2016 0.48% A 1/1/2016 0.1 12,000,000.00 100.0000 $12,000,000.00 NY021517 64990EJ32 NEW YORK ST DORM AUT 2/15/17 .93% AAA 2/15/2017 1.2 3,685,000.00 99.9980 $3,684,926.30 NE031516 650035K56 NEW YORK ST URBAN DE V 3/15/2016 0.63% AAA 3/15/2016 0.2 10,000,000.00 100.0170 $10,001,700.00 NY031516 64990ERF6 NY DORM AUTH-D-TXBL 3/15/2016 0.66% AAA 3/15/2016 0.2 2,500,000.00 100.0320 $2,500,800.00 OA020116 672211BC2 OAKLAND COLISEUM-A 2/1/2016 0.8% A-1+ 2/1/2016 0.2 2,000,000.00 100.0170 $2,000,340.00 OC081516 675371AS7 OCEANSIDE PENSION-RE F 8/15/2016 1.406% AA 8/15/2016 0.7 750,000.00 100.0300 $750,225.00 OR020116 68428LDH4 ORANGE CNTY -TXBL-A 2/1/2016 0.68% AA 2/1/2016 0.2 10,930,000.00 100.0150 $10,931,639.50 PB060118 69353REN4 PNC BANK NA 06/01/2018 A 6/1/2018 2.5 3,000,000.00 99.5237 $2,985,711.00 PN012717 69353RCG1 PNC BANK NA 1/27/2017 1.125% A 1/27/2017 1.1 12,735,000.00 99.6624 $12,692,006.64 PO061516 738798BC0 POWAY REDEV AGY-B 6/15/2016 0.95% AA- 6/15/2016 0.5 2,000,000.00 100.0340 $2,000,680.00 PO121516 738798BD8 POWAY REDEV AGY-B 12/15/2016 1.1% AA- 12/15/2016 1.0 3,545,000.00 100.0730 $3,547,587.85 RI020117 762494QV7 RIALTO USD-TXBL 2/1/2017 1.258% AA 2/1/2017 1.2 800,000.00 99.8660 $798,928.00 RI090116 76912TJC8 RIVERSIDE PUB FIN-RE F 9/1/2016 1% A 9/1/2016 0.8 2,090,000.00 99.9270 $2,088,474.30 SD070116 7973552R4 SAN DIEGO CALIF UNI SCH DIST 07/01/16 AA- 7/1/2016 0.6 10,000,000.00 99.9000 $9,990,000.00 SA100116 79876CAV0 SAN MARCOS CA REDEV 1.09% 10/1/16 AA- 10/1/2016 0.8 5,125,000.00 100.1530 $5,132,841.25 Au081417 78448MAB3 SMAT 2015-1US A2A 8/14/2017 0.99% AAA 8/14/2017 1.7 3,152,201.72 99.8179 $3,146,461.56 Au011717 89236RAC3 TAOT 2013-A A3 1/17/2017 0.55% AAA 1/17/2017 1.1 459,727.83 99.9579 $459,534.28 AT121517 89231MAC9 TAOT 2014-A A3 12/15/2017 0.67% AAA 12/15/2017 2.0 1,076,199.23 99.7888 $1,073,926.29 TO121516 89231RAB0 TAOT 2014-B A2 12/15/2016 0.4% AAA 12/15/2016 1.0 89,939.85 99.9733 $89,915.84 AT071717 89236WAB4 TAOT 2015-A A2 7/17/2017 0.71% AAA 7/17/2017 1.6 5,537,052.62 99.9157 $5,532,384.88 Au021518 89231TAB6 TAOT 2015-C A2A 2/15/2018 0.93% AAA 2/15/2018 2.2 5,550,000.00 99.8481 $5,541,569.55 KO102717 191216BR0 THE COCA-COLA COMPAN Y 10/27/17 AA 10/27/2017 1.8 1,500,000.00 99.6274 $1,494,411.00 To030116 89116EC19 TORONTO DOMINION HOL DINGS USA I 03/01/16 A-1+ 3/1/2016 0.2 20,000,000.00 99.9248 $19,984,960.00 TM011116 89233P4R4 TOYOTA MOTOR CREDIT CORP 2.8% 1/11/16 AA- 1/11/2016 0.1 1,000,000.00 100.0288 $1,000,288.00 TO011218 89236TCB9 TOYOTA MOTOR CREDIT CORP 1/12/2018 0.57 AA- 1/12/2018 2.1 13,000,000.00 99.4370 $12,926,810.00 TO091516 89233P5E2 TOYOTA MOTOR CREDIT CORP 9/15/2016 2% AA- 9/15/2016 0.8 895,000.00 100.8071 $902,223.55 UB092616 90521APH5 UNION BANK NA 9/26/2016 1.5% A+ 9/26/2016 0.8 4,575,000.00 100.2446 $4,586,190.45 UN092616 90521APG7 UNION BANK NA 9/26/2016 0.9996% A+ 9/26/2016 0.8 2,515,000.00 99.9987 $2,514,967.31 UN051516 91412GUT0 UNIV OF CALIFORNIA-A N 5/15/2016 0.634% AA 5/15/2016 0.4 1,830,000.00 100.0370 $1,830,677.10 UC070141 91412GEZ4 UNIVERSITY CALIF REVS 07/01/2041** AA 7/1/2017 1.6 10,880,000.00 99.9700 $10,876,736.00 US111516 91159HHB9 US BANCORP 11/15/2016 2.2% A+ 11/15/2016 0.9 1,365,000.00 100.9639 $1,378,157.24 US012618 90331HMR1 US BANK NA CINCINNAT I 1/26/2018 0.55572 AA- 1/26/2018 2.1 4,500,000.00 99.5123 $4,478,053.50 US013017 90331HMD2 US BANK NA CINCINNAT I 1/30/2017 0.4661% AA- 1/30/2017 1.1 5,000,000.00 99.9550 $4,997,750.00 CalTrust Portal

Page 77

T022916 912828B82 US TREASURY N/B 2/29/2016 0.25% AA+ 2/29/2016 0.2 2,000,000.00 99.9922 $1,999,844.00 T043016 912828C81 US TREASURY N/B 4/30/2016 0.375% AA+ 4/30/2016 0.3 20,000,000.00 99.9883 $19,997,660.00 T083116 912828RF9 US TREASURY N/B 8/31/2016 1% AA+ 8/31/2016 0.7 30,000,000.00 100.2031 $30,060,930.00 TN51516 912828VC1 US TREASURY N/B 5/15/2016 0.25% AA+ 5/15/2016 0.4 7,980,000.00 99.9297 $7,974,390.06 TR033116 912828C40 US TREASURY N/B 0.375% 03/31/16 AA+ 3/31/2016 0.2 15,000,000.00 100.0039 $15,000,585.00 Au121517 90290KAC9 USAOT 2014-1 A3 12/15/2017 0.58% AAA 12/15/2017 2.0 1,466,097.06 99.8389 $1,463,735.18 Au031518 90290XAB3 USAOT 2015-1 A2 3/15/2018 0.82% AAA 3/15/2018 2.2 11,430,000.00 99.8459 $11,412,386.37 Au042018 92867PAC7 VALET 2013-2 A3 4/20/2018 0.7% AAA 4/20/2018 2.3 4,071,030.42 99.5225 $4,051,591.25 VC091516 92343VBN3 VERIZON COMMUNICATIO NS 9/15/2016 2.5% A 9/15/2016 0.8 6,500,000.00 100.7803 $6,550,719.50 VZ060917 92343VCD4 VERIZON COMMUNICATIO NS 6/9/2017 0.6306% A 6/9/2017 1.5 1,000,000.00 99.5787 $995,787.00 VZ091516 92343VBL7 VERIZON COMMUNICATIO NS 9/15/2016 1.7823 A 9/15/2016 0.8 1,925,000.00 100.6123 $1,936,786.78 Au042017 92867QAD3 VWALT 2014-A A3 4/20/2017 0.8% AAA 4/20/2017 1.3 7,023,042.46 99.7238 $7,003,644.82 Au062017 92867VAB6 VWALT 2015-A A2A 6/20/2017 0.87% AAA 6/20/2017 1.5 1,477,980.33 99.8075 $1,475,135.22 VPWF3801 VP7000236 WELLS FARGO ADVANT- AGE HERITAGE AAA 1/1/2016 0.1 49,409,692.00 100.0000 $49,409,692.00

Grand Total $1,018,427,217.39 * Security ratings are updated monthly at month-end. **Mandatory put on 7/1/17 SECTION III

APPENDIX

B. INVESTMENT PORTFOLIO DETAIL – MANAGED BY OUTSIDE CONTRACTED PARTIES

B. 3. EAST BAY REGIONAL COMMUNICATIONS SYSTEM AUTHORITY (EBRCS) Page 78

EBRCS TRANSACTIONS* For the Quarter Ending December 31, 2015 FY 2015-2016

FUND BALANCE @ TJ/Date TJ/Date TJ/Date TJ/Date TJ/Date TJ/Date BALANCE @ NUMBER 09/30/15 12/31/15

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 EXHIBITS CONTRA COSTA COUNTY Exhibit I Portfolio Summary Report AS OF DECEMBER 31, 2015

Portfolio Characteristics Par $3,223,855,273.60 PORTFOLIO BREAKDOWN ABS/MBS 0.14% Cost $3,224,114,720.65 Money Market BY INVESTMENT 54.45% Market Value $3,222,613,057.91 Weighted Yield to Maturity 0.64% Weighted Average Days to Maturity 228 Weighted Duration 0.62 yr

Portfolio Breakdown by Investment

Investments Par Value Percent of Total U.S. Treasuries $37,620,000.00 1.17% U.S.Agencies‐ Corporate Notes U.S.Agencies-Federal, State and Local 623,828,000.00 19.35% U.S. Treasuries Outside Outside Federal, State 4.64% Money Market 1,755,243,654.09 54.45% 1.17% Cash Contractors‐ Contractors‐ ABS/MBS 4,562,799.15 0.14% and Local 7.71% Other LAIF Corporate Notes 149,457,000.00 4.64% 19.35% 6.05% 6.51% Outside Contractors-LAIF 209,721,646.14 6.51% Outside Contractors-Other 194,951,062.72 6.05% Cash 248,471,111.50 7.71% Less 1 yr MATURITY DISTRIBUTION TOTAL* $3,223,855,273.60 100.00% ** 80.37%

Maturity Distribution

Time Par Value Percent of Total Less 1 yr $2,590,967,140.82 80.37% 1 to 2 yrs 297,694,168.90 9.23% 2 to 3 yrs 274,174,802.65 8.50% 4+ yrs 3 to 4 yrs 56,876,404.33 1.76% 0.13% 4+ yrs 4,142,756.90 0.13% 3 to 4 yrs 2 to 3 yrs 1 to 2 yrs TOTAL* $3,223,855,273.60 100.00% ** 1.76% 8.50% 9.23%

* Does not include the Futuris Public Entity Trust of the Contra Costa Community College District Retirement Board of Authority ** May or may not total to 100% due to rounding Exhibit II

CONTRA COSTA COUNTY INVESTMENT POOL PERFORMANCE SUMMARY AS OF DECEMBER 31, 2015 WEIGHTED AVERAGE DAYS TO 3 PERCENT OF MATURITY AT PAR PORTFOLIO YTM END-OF-QUARTER DURATION ($) (%) (%) (day) (year)

A. Investments Managed by Treasurer's Office $2,570,711,453.24 79.80% 0.6955% 280 0.75 1

B. Investments Managed by Outside Contractors

1. Local Agency Investment Fund $209,721,646.14 6.51% 0.3800% 1 N/A

2. Other a. Wells Capital Management $44,255,885.01 1.37% 0.8170% 277 0.42 2 b. CalTRUST (Short-Term Fund) $148,462,420.81 4.61% 0.5600% 1 N/A

C. Cash $248,471,111.50 7.71% 0.3500% 4 1N/A

3 Yield to Maturity on Portfolio at End-of-Quarter = 0.64% 3 Weighted Average Days to Maturity on Portfolio at End-of-Quarter = 228 3 Weighted Duration at End-of-Quarter = 0.62 yr

1. Data is provided by Sungard.

2. Data is provided by Wells Cap Management.

3. Excludes: Section B.2.a (EBRCS Bond) of the Investment Pool summary report and Futuris Public Entity Trust

4. Earnings Credit Rate on Investable Balance LAIF and CalTRUST Short-Term are subject to a one day call of principal provision. Exhibit III

CONTRA COSTA COUNTY INVESTMENT POOL

As of December 31, 2015 As of September 30, 2015 CHANGE IN VALUE

TYPE PAR VALUE PAR VALUE FROM PREV. QTR. % CHANGE A. Investments Managed by Treasurer's Office 1. U.S. Treasuries (STRIPS, Bills, Notes) $37,620,000.00 $29,160,000.00 $8,460,000.00 29.01%

2. U.S. Agencies Federal Agriculture Mortgage Corporation 0.00 0.00 0.00 0.00% Federal Home Loan Banks 235,002,000.00 223,502,000.00 11,500,000.00 5.15% Federal National Mortgage Association 92,526,000.00 102,316,000.00 (9,790,000.00) -9.57% Federal Farm Credit Banks 174,036,000.00 124,211,000.00 49,825,000.00 40.11% Federal Home Loan Mortgage Corporation 116,709,000.00 82,142,000.00 34,567,000.00 42.08% Municipal Bonds 5,555,000.00 7,225,000.00 (1,670,000.00) -23.11% Subtotal 623,828,000.00 539,396,000.00 84,432,000.00 15.65%

3. Money Market Instruments Bankers Acceptances 0.00 0.00 0.00 0.00% Repurchase Agreement 0.00 0.00 0.00 0.00% Commercial Paper 955,477,000.00 612,848,000.00 342,629,000.00 55.91% Negotiable Certificates of Deposit 794,998,000.00 495,732,000.00 299,266,000.00 60.37% Medium Term Certificates of Deposit 4,200,000.00 2,025,000.00 2,175,000.00 107.41% Money Market Accounts 565,318.32 565,318.32 0.00 0.00% Time Deposit 3,335.77 3,335.77 0.00 0.00% Subtotal 1,755,243,654.09 1,111,173,654.09 644,070,000.00 57.96%

4. Asset Backed Securities/Mortgage Backed Securities 4,562,799.15 4,595,000.00 2,093,548.49 100.00%

5. Corporate Notes 149,457,000.00 161,007,000.00 (11,550,000.00) -7.17%

TOTAL 2,570,711,453.24 1,845,331,654.09 725,379,799.15 39.31%

B. Investments Managed by Outside Contractors

1. Local Agency Investment Fund 209,721,646.14 195,505,003.78 14,216,642.36 7.27%

2. Other a. EBRCS Bond 2,232,756.90 2,232,756.90 0.00 0.00% b. Wells Capital Management 44,255,885.01 44,187,952.42 67,932.59 0.15% c. CalTRUST (Short-Term Fund) 148,462,420.81 148,585,809.69 (123,388.88) -0.08% Subtotal 194,951,062.72 195,006,519.01 (55,456.29) -0.03%

TOTAL 404,672,708.86 390,511,522.79 14,161,186.07 3.63%

C. Cash 248,471,111.50 129,644,735.27 118,826,376.23 91.66%

*GRAND TOTAL (FOR A , B, & C) $3,223,855,273.60 $2,365,487,912.15 $858,367,361.45 36.29%

* Does not include the Futuris Public Entity Trust of the Contra Costa Community College District Retirement Board of Authority CONTRA COSTA INVESTMENT POOL Exhibit IV

INVESTMENTS MANAGED BY TREASURER'S OFFICE

QUARTERLY COUPON RATES, YIELD TO MATURITY

Quarter Ending

Fiscal Year September December March June

2015/16 Coupon Rate 0.6433% 0.7270% Yield to Maturity 0.5859% 0.6955%

2014/15 Coupon Rate 0.5437% 0.4624% 0.4912% 0.5309% Yield to Maturity 0.4605% 0.4185% 0.4379% 0.4894%

2013/14 Coupon Rate 0.6331% 0.4843% 0.4686% 0.4802% Yield to Maturity 0.4645% 0.3709% 0.3680% 0.3877%

2012/13 Coupon Rate 0.8304% 0.5568% 0.5829% 0.5838% Yield to Maturity 0.6012% 0.3947% 0.4243% 0.4229%

2011/12 Coupon Rate 0.8769% 0.8385% 0.8122% 0.7426% Yield to Maturity 0.6842% 0.6658% 0.6739% 0.6130%

2010/11 Coupon Rate 0.9802% 0.7132% 0.7326% 0.6982% Yield to Maturity 0.7494% 0.5866% 0.6133% 0.5612%

2009/10 Coupon Rate 1.2464% 0.8931% 0.8610% 0.8212% Yield to Maturity 1.1095% 0.7840% 0.7373% 0.6993%

2008/09 Coupon Rate 4.4019% 1.7623% 1.2918% 1.2418% Yield to Maturity 4.2819% 1.6574% 1.1808% 1.1231%

2007/08 Coupon Rate 5.1675% 4.6491% 3.3805% 2.9712% Yield to Maturity 5.2022% 4.6583% 3.3454% 2.9048%

2006/07 Coupon Rate 5.1683% 5.1819% 5.2384% 5.2407% Yield to Maturity 5.2286% 5.2229% 5.2766% 5.2705%

2005/06 Coupon Rate 3.6925% 4.1660% 4.6328% 5.0427% Yield to Maturity 3.6818% 4.1594% 4.6358% 5.0821%

Source: All data is calculated by Sungard. CONTRA COSTA INVESTMENT POOL Exhibit IV (a)

INVESTMENTS MANAGED BY OUTSIDE CONTRACTOR

LAIF QUARTERLY APPORTIONMENT RATES

Quarter Ending

Fiscal Year September December March June

2015/16 Apportionment Rate 0.32% 0.37%

2014/15 Apportionment Rate 0.24% 0.25% 0.26% 0.28%

2013/14 Apportionment Rate 0.26% 0.26% 0.23% 0.22%

2012/13 Apportionment Rate 0.35% 0.32% 0.28% 0.24%

2011/12 Apportionment Rate 0.38% 0.38% 0.38% 0.36%

2010/11 Apportionment Rate 0.51% 0.46% 0.50% 0.48%

2009/10 Apportionment Rate 0.90% 0.60% 0.56% 0.56%

2008/09 Apportionment Rate 2.77% 2.54% 1.91% 1.51%

2007/08 Apportionment Rate 5.24% 4.96% 4.18% 3.11%

2006/07 Apportionment Rate 4.93% 5.11% 5.17% 5.23%

2005/06 Apportionment Rate 3.18% 3.63% 4.03% 4.53%

Source: Contra Costa County Treasurer's Quarterly Investment Report - LAIF Statements Exhibit IV (b) Contra Costa County Investment Pool as of December 31, 2015 5.50%

5.00%

4.50%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

TTC "Coupon" TTC "YTM" LAIF Exhibit IV (c) Risk Assessment 7.00% as of December 31, 2015

1 year 2 years 3 years 5 years 6.00%

5.00%

4.00% 2 Standard Deviations County Treasurer 1 Standard Deviation 3.00%

Yield to Maturity to Maturity Yield 2.00% Wells Capital Mgmt

1.00%

US Treasuries Yield Curve 0.00% -1 Standard Deviation

-2 Standard Deviations -1.00%

-2.00% 12/31/15 6/28/16 12/25/16 6/23/17 12/20/17 6/18/18 12/15/18 6/13/19 12/10/19 6/7/20 12/4/20

Maturity Dates Risk Assessment Exhibit IV (d)

(Securities Greater Than Two Standard Deviations)

As of December 31, 2015 PURCHASE MATURITY CUSIP DESCRIPTION DATE PAR COST MARKET COUPON (%) DATE YTM (%)

204712FD0 AUHSD MUNI COMPTONCA CNTY REDEV 1/3/121 10,000.00 7,453.00 7,453.00 0.00 8/1/16 6.53 928668AD4 VOLKSWAGEN GROUP AMERICA3 5/23/14 500,000.00 500,000.00 496,780.20 0.55 5/23/16 2.71 167486JC4 AUHSD MUNI CHICAGO UNREF CALL 6/27/132 390,000.00 421,318.77 421,318.77 5.00 1/1/17 2.59 36962GU51 CORP GENERAL ELEC CA 3/8/13 10,000,000.00 9,952,450.00 10,000,000.00 0.52 1/8/16 2.39 3134A4ZT4 WT GOV FHLMC NOTES 2/25/11 155,000.00 172,267.00 155,289.85 4.75 1/19/16 2.33 45905U7F5 IBRD3 6/26/15 1,000,000.00 1,000,000.00 995,012.50 0.45 7/19/16 1.78 836496NW5 AUHSD MUNI SOUTH BEND IN CMNTY SCH 6/27/132 505,000.00 547,506.38 547,506.38 5.00 1/15/16 1.62

1. Date when the security was transferred from AUHSD to Contra Costa County Investment Pool Managed by Treasurer's Office. 2. Date when the security was transferred from AUHSD's Fund 5055 to Fund 5057 per District's request. 3. Security purchased by Wells Cap Management. Exhibit V

CONTRA COSTA COUNTY INVESTMENT POOL

AVERAGE INFORMATION October 1, 2015 through December 31, 2015

AVERAGE DAYS AVERAGE DAILY TO MATURITY AVERAGE DAYS TO BALANCE PERCENT OF AVERAGE AS A PERCENT MATURITY FOR (PAR) PORTFOLIO YTM OF PORTFOLIO THE QUARTER

A. Investments Managed by Treasurer's Office $2,074,946,319.36 78.18% 0.6043% 217.87 279

B. Investments Managed by Outside Contractors

1. Local Agency Investment Fund $190,301,317.54 7.17% 0.3770% 0.07 1

2. Other a. Wells Capital Management $44,225,233.98 1.67% 0.6840% 4.99 299 b. CalTRUST Short Term Fund $137,378,057.40 5.18% 0.5300% 0.05 1 c. Cash $207,120,144.28 7.80% 0.2083% 0.08 1

Total $2,653,971,072.56 100.00%

*Weighted Average YTM of Portfolio = 0.55% 223

* Excludes: Section B.2.a (EBRCS Bond) of the Investment Pool Summary and Futuris Public Entity Trust LAIF and CalTRUST Short Term Fund are subject to a one day call of principal provision Exhibit V (a)

CONTRA COSTA COUNTY INVESTMENT POOL SUMMARY OF POOL RATES AND BENCHMARKS AS OF DECEMBER 31, 2015

Average Pool Rates: YTM as of Quarterly Days to 12/31/15 Ave. Maturity Total County Portfolio (w/o Cash) 0.64% 0.55% 257 *1

Investments Managed by Treasurer's Office 0.70% 0.60% 279

Wells Capital Management 0.82% 0.68% 299

CalTRUST Short Term Fund 0.56% 0.53% 376 *2

Quarterly PMIA Ave. Apportionment Effective Rate Yield Local Agency Investment Fund (LAIF) 0.37% 0.38% 210 *2

10/1/15 - 12/31/15 Benchmarks: 12/31/15 High Ave. Low Federal Fund Rate 0.2500% 0.3500% 0.1592% 0.0600%

Six Month Treasury Bill 0.1625% 0.2475% 0.1383% 0.0075%

Six Month LIBOR 0.8462% 0.8462% 0.6312% 0.5159%

Vanguard Prime Money Mkt Fund 0.0500%

*1. Cash is excluded from the calculation. *2. Average days to maturity (with a one day call of principal provision) Exhibit V (b)

Contra Costa County Investment Pool Average Quarterly YTM as of December 31, 2015

6.0000%

Treasurer

5.0000% LAIF

Wells Capital Mgmt

4.0000% CalTRUST

3.0000%

2.0000%

1.0000%

0.0000% CONTRA COSTA COUNTY TREASURER'S INVESTMENT PORTFOLIO STRUCTURED SECURITIES Exhibit VI December 31, 2015

Purchase Coupon Description CUSIP Date Rate Par Market Cost Provisions Fund # *

GECC Float Rate Note 1/8/16 36962GU51 3/8/13 0.5180% $10,000,000.00 $10,000,000.00 $9,952,450.00 Float quarterly: LIBOR +20 bps 8177

Chicago Unrefunded MUNI 1/1/17 167486JC4 6/27/20131 5.0000% $390,000.00 $421,318.77 $421,318.77 One time: 1/1/16 5057

Chicago Prerefunded MUNI 1/1/17 167486JB6 6/27/20131 5.0000% $170,000.00 $189,542.34 $189,542.34 One time: 1/1/16 5057

Berkshire Hath Float Rate 1/10/17 084664CA7 1/10/14 0.4706% $500,000.00 $499,780.00 $500,000.00 Float quarterly: LIBOR +15 bps 6911

Svenska Handelsbanken Float CD 8/24/17 86958DH54 11/24/15 0.8280% $1,340,000.00 $1,340,000.00 $1,340,000.00 Float quarterly: LIBOR +45 bps 6911

HSBC BK Float CD 11/17/17 40428AR41 11/18/15 0.9541% $2,175,000.00 $2,175,000.00 $2,175,000.00 Float quarterly: LIBOR +59 bps 6911

Intel Structured Callable 12/15/17 458140AL4 1/27/14 1.3500% $5,211,000.00 $5,217,930.63 $5,179,629.78 Make-whole call +12.5 bps until 12/15/17 8177

FNMA Callable Multi-Step Up 5/22/18 3136G1M63 5/22/13 0.7500% $10,000,000.00 $10,001,300.00 $10,000,000.00 Quarterly; First: 11/22/13; Last: 2/22/18; 0.75% to 8177 5/22/16; 1% to 5/22/17; 2% to 11/22/17; 3% thereafter

FNMA Callable 5/25/18 3136G2K71 5/27/15 1.2500% $10,000,000.00 $10,015,400.00 $10,000,000.00 One time: 5/25/16 8177

FNMA Callable Mult-Step Up 6/12/18 3136G1MU0 6/12/13 1.0000% $5,000,000.00 $5,005,050.00 $4,997,950.00 Quarterly; First: 12/12/13; Last: 3/12/18; 0.8% to 8177 6/12/14; 0.85% to 6/12/15; 1% to 6/12/16; 1.25% to 6/12/17; 1.5% to 12/12/17; 3% to 6/12/18

BB&T Corp Callable 2/1/19 05531FAQ6 9/29/15 2.2500% $1,960,000.00 $1,967,702.80 $1,987,430.20 Call anytime on or after 1/2/19 7903

Total $46,746,000.00

* Fund #

5057 Acalanes Unified High School District 6911 Contra Costa County Schools Insurance Group 7903 Contra Costa Community College District Retiree Health Benefits 8177 County (Pool) 1. Date when the security was transferred from AUHSD's Fund 5055 to Fund 5057 per District's request CONTRA COSTA COUNTY CALTRUST SHORT TERM FUND STRUCTURED SECURITIES Exhibit VI (a) December 31, 2015

DESCRIPTION CUSIP MATURITY DATE PAR MARKET COST PROVISIONS ($) ($) ($) AMERICAN HONDAFIN 1.125% 10/07/16 02665WAB7 10/7/2016 4,000,000.00 4,003,204.00 4,022,240.00 Make‐whole call +10 bps AMERICAN HONDA FINANCE 9/20/2017 0.7626 02665WAY7 9/20/2017 2,000,000.00 1,997,768.00 2,000,000.00 Float quarterly: LIBOR +45 bps AMERICAN HONDA FINANCE 12/11/2017 0.545 02665WAR2 12/11/2014 8,000,000 7,953,328.00 8,000,000.00 Float quarterly: LIBOR +31 bps ANAHEIM FING AUTH-B 5/1/2016 1% 03255LGX1 5/1/2016 2,850,000 2,850,798.00 2,850,000.00 Make‐whole call BANK OF AMERICA NA 11/14/2016 0.7089% 06050TLS9 11/14/2016 2,200,000.00 2,198,761.40 2,200,000.00 Float quarterly: LIBOR +47 bps BANK OF AMERICA NA 2/14/2017 0.7061% 06050TLU4 2/14/2017 500,000.00 499,200.50 500,000.00 Float quarterly: LIBOR +47 bps BANK OF AMERICA NA 06/05/2017 06050TMB5 6/5/2017 2,250,000.00 2,242,480.50 2,250,000.00 Float quarterly: LIBOR +45 bps BANK OF NEW YORK MELLON CORPORA 01/17/17 06406HCA5 1/17/2017 2,000,000.00 2,018,886.00 2,036,280.00 Call on anytime on or after 12/18/16 BANK OF NY MELLON 5/22/18 VARIABLE 06406HDC0 5/22/2018 5,000,000.00 4,991,575.00 4,998,500.00 Float quarterly: LIBOR +38 bps BB&T CORPORATION 3/15/2016 3.2% 05531FAG8 3/15/2016 2,350,000.00 2,356,427.25 2,401,026.00 Call anytime on or after 2/16/16 BERKSHIRE HATHAWAY FIN 8/15/2016 0.95% 084664BX8 8/15/2016 1,105,000.00 1,105,618.80 1,105,552.50 Make‐whole call +7.5 bps BERKSHIRE HATHAWAY FIN 1/12/2018 0.5533 084664CD1 1/12/2018 2,750,000.00 2,743,721.75 2,750,000.00 Float quarterly: LIBOR +30 bps BMWOT 2014-A A2 4/25/2017 0.53% 09658UAB5 4/25/2017 2,860,842.33 2,858,628.03 2,860,745.63 5% clean up call BRANCH BANKING & TRUST 12/1/2016 0.6743 07330NAF2 12/1/2016 3,000,000.00 2,998,680.00 3,001,780.00 Float quarterly: LIBOR +43 bps; Call after 11/1/16 BRANCH BANKING & TRUST 12/1/2016 1.05% 07330NAG0 12/1/2016 8,125,000.00 8,319,580.43 8,135,667.00 Call anytime after 11/1/16 BRANCH BANKING & TRUST 9/13/2016 0.5899 10513KAB0 9/13/2016 2,000,000.00 1,995,598.00 1,994,850.00 Float quarterly: LIBOR +32 bps CA UNI-FLTG-TXB-Y-2 7/1/2041 0.656% 91412GFA8 7/1/2017 4,250,000.00 4,248,725.00 4,249,500.00 Float monthly: US0001M +50 bps CALIFORNIA ST DEPT .991% 12/1/16 13066KW21 12/1/2016 1,250,000.00 1,250,725.00 1,251,250.00 Make‐whole call +20 bps CCCIT 2013-A6 A6 9/7/2018 1.32% 17305EFE0 9/7/2018 4,250,000.00 4,258,287.50 4,282,871.07 5% clean up call CHAIT 2006-A2 A2 4/16/2018 5.16% 161571BC7 4/16/2018 2,426,000.00 2,438,003.85 2,514,700.63 10% clean up call CHAIT 2014-A1 A1 1/15/2019 1.15% 161571GJ7 1/15/2019 13,000,000.00 12,989,951.00 13,057,890.69 10% clean up call CHEVRON CORP3/2/2018 0.432967% 166764AW0 3/2/2018 4,000,000.00 3,971,392.00 4,000,000.00 Float quarterly: LIBOR +17 bps CISCO SYSTEMS INC 06/15/2018 17275RAY8 6/15/2018 5,500,000.00 5,488,455.50 5,500,000.00 Float quarterly: LIBOR +31 bps CITIGROUP INC 3/10/2017 0.7744% 172967HL8 3/10/2017 1,000,000.00 997,589.00 999,690.00 Float quarterly: LIBOR +54 bps CITIGROUP INC 4/27/2018 0.967% 172967JQ5 4/27/2018 5,000,000.00 4,979,775.00 5,000,000.00 Float quarterly: LIBOR +69 bps CITIGROUP INC. 12/07/18 172967KF7 12/7/2018 3,000,000.00 2,990,559.00 3,000,000.00 Float quarterly: LIBOR +86 bps COMCAST CORP 6/15/2016 4.95% 20030NAG6 6/15/2016 1,402,000.00 1,427,282.27 1,501,163.46 Make‐whole call +20 bps until 5/15/15 CREDIT SUISSE NEW YORK 4/27/2018 0.9574 22546QAW7 4/27/2018 5,500,000.00 5,473,919.00 5,500,000.00 Float quarterly: LIBOR +68 bps FANNIE MAE 02/27/2017 0.65% 3135G0XL2 2/27/2017 3,660,000.00 3,645,239.22 3,654,876.00 Quarterly; First 11/27/13; Last 11/27/16 FEDERAL HOME LOAN MORTGAGE CORP 09/15/18 31394JTT4 9/15/2018 2,497,065.03 2,594,175.89 2,597,727.96 1% clean up call FEDERAL NATIONAL MORTGAGE ASSOC 05/16/17 3135G0ZD8 5/16/2017 2,000,000.00 2,007,716.00 2,019,420.00 One time: 5/16/16 FITAT 2015-1 A2A MTGE 1.02% 05/15/18 31680GAB2 5/15/2018 10,400,000.00 10,374,988.00 10,399,716.08 10% collateral call FREDDIE MAC 4/14/2017 0.8% 3134G6PN7 4/14/2017 10,000,000.00 10,000,800.00 10,012,500.00 One time: 4/14/16 FREDDIE MAC 0.85% 05/26/2017 3134G6E82 5/26/2017 11,545,000.00 11,518,354.14 11,543,845.50 Quarterly; First 8/26/15; Last 2/26/17 FREDDIE MAC0.75% 05/26/2017 3134G6R70 5/26/2017 5,000,000.00 4,976,470.00 4,995,500.00 One time: 5/26/16 FREDDIE MAC 0.85% 06/16/2017 3134G6W66 6/16/2017 5,000,000.00 4,983,375.00 5,000,000.00 One time: 6/16/16 FIFTH THIRD BANK 2/26/2016 0.9% 31677QAX7 2/26/2016 6,810,000.00 6,809,986.38 6,821,310.80 Call anytime after 1/26/16 FIFTH THIRD BANK 11/18/2016 0.7481% 31677QAZ2 11/18/2016 8,360,000.00 8,358,796.16 8,371,221.50 Float quarterly: LIBOR +51 bps; Call after 10/18/16 GE DEALER FLOORPLANMASTER NT 04/20/18 36159LCF1 4/20/2018 4,690,000.00 4,690,023.45 4,690,000.00 Float monthly: LIBOR +40 bps; 10% clean up call GENERAL ELEC CAPCORP 05/11/2016 36962G2V5 5/11/2016 4,635,000.00 4,635,018.54 4,583,207.70 Float quarterly: LIBOR +20 bps GEORGIA POWER COMPANY 4/15/2016 3% 373334JV4 4/15/2016 4,395,000.00 4,419,392.25 4,500,919.50 Make‐whole call +15 bps until 4/15/16 HARLEY-DAVIDSON 0.8% 01/15/19 41284CAB0 1/15/2019 4,539,618.31 4,524,964.42 4,539,585.16 10% collateral call HAROT 2015-1 A2 7/17/2017 0.7% 43814KAB7 6/15/2017 4,104,083.92 4,100,082.44 4,106,062.10 10% collateral call HAROT 2014-1 A3 11/21/2017 0.67% 43813JAC9 11/21/2017 3,969,346.52 3,962,209.63 3,967,175.80 10% collateral call HAWAII-TXBL-REF-ES 8/1/2016 0.731% 4197915E4 8/1/2016 14,250,000.00 14,256,555.00 14,251,690.00 Make‐whole call +10 bps HDMOT 2013‐1 A3 7/16/2018 0.65% 41283YAC1 7/16/2018 549,796.54 549,277.54 549,066.33 10% collateral call HDMOT 2015-1 A2A 1/15/2019 0.95% 41284BAB2 1/15/2019 8,240,631.66 8,227,009.90 8,240,564.93 10% collateral up call HONDA AUTO RECEIV-ABLES 08/21/2017 43813NAB2 8/21/2017 2,000,000.00 1,997,156.00 1,999,880.20 10% clean up call HONDA AUTO RECEIV-ABLES 07/23/18 43814LAB5 7/23/2018 2,100,000.00 2,094,357.30 2,099,961.78 10% collateral call HSBC USA INC 11/13/2017 0.57185% 40428HPM8 11/13/2017 7,955,000.00 7,889,411.03 7,953,996.43 Float quarterly: LIBOR +34 bps HSBC USA INC 8/7/2018 1.0809% 40428HPW6 8/7/2018 2,000,000.00 1,998,464.00 2,000,000.00 Float quarterly: LIBOR +77 bps IBM CORP 7/22/2016 1.95% 459200GX3 7/22/2016 12,450,000.00 12,524,463.45 12,714,064.50 Make‐whole call +15 bps until 7/22/16 INDUSTRY PUB FACS-A 1/1/2017 1.764% 45656TAQ1 1/1/2017 7,700,000.00 7,741,657.00 7,700,000.00 Make‐whole call +25 bps JDOT 2015-A A2A 2/15/2018 0.87% 47787UAB9 2/15/2018 6,628,442.57 6,619,706.28 6,628,015.70 10% clean up call JDOT 2015-B A20 6/15/2018 0.98% 47787WAB5 6/15/2018 4,500,000.00 4,489,632.00 4,499,848.35 10% clean up call JOHN DEERE CAPITAL CORP 1/16/2018 0.543 24422ESU4 1/16/2018 12,165,000.00 12,119,916.51 12,181,594.50 Float quarterly: LIBOR +29 bps JP MORGAN CHASE BANKNA 6/13/2016 0.6101 48121CJM9 6/13/2016 6,650,000.00 6,640,118.10 6,576,340.50 Float quarterly: LIBOR +33 bps JPMORGAN CHASE & CO 2/15/2017 0.750933% 46623EJZ3 2/15/2017 1,500,000.00 1,499,019.00 1,503,180.00 Float quarterly: LIBOR +52 bps Exhibit VI (a)

CONTRA COSTA COUNTY CALTRUST SHORT TERM FUND STRUCTURED SECURITIES December 31, 2015

DESCRIPTION CUSIP MATURITY DATE PAR MARKET COST PROVISIONS ($) ($) ($) KEY BANK NA 11/25/2016 0.7516% 49327M2E3 11/25/2016 8,000,000.00 8,000,096.00 8,023,008.00 Float quarterly: LIBOR +49 bps; Call anytime on or after 10/25/16 LOS ANGELES CALIF MUN IMPT CORP 11/01/16 544587B72 11/1/2016 10,965,000.00 10,983,750.15 10,965,000.00 Make‐whole call MANUF & TRADERS TRUST CO 7/25/2017 0.53 55279HAH3 7/25/2017 5,000,000.00 4,984,385.00 5,000,000.00 Float quarterly: LIBOR +30 bps MBALT 2015-A A2A 2/15/2017 0.78% 58768LAB9 2/15/2017 2,325,918.83 2,325,193.14 2,325,787.42 10% clean up call MBALT 2015-B A2A 1% 01/16/18 58769AAB2 1/16/2018 10,000,000.00 9,975,840.00 9,999,108.00 5% clean up call MBART 2014-1 A2 2/15/2017 0.43% 587729AB0 2/15/2017 258,728.97 258,618.24 258,713.78 10% clean up call MERCEDES BENZ AUTO RECEIVABLES 06/15/18 58772PAB4 6/15/2018 2,050,000.00 2,045,297.30 2,047,117.19 5% collateral call MISSISSIPPI ST-B-TXBL 10/1/2016 0.64% 605581FW2 10/1/2016 2,780,000.00 2,777,970.60 2,780,000.00 Make‐whole call +20 bps MISSISSIPPI ST-D-REF10/1/2016 0.64% 605581EP8 10/1/2016 2,520,000.00 2,518,513.20 2,520,000.00 Make‐whole call +25 bps MORGAN STANLEY 1/5/2018 1.007098% 61761JVN6 1/5/2018 7,938,000.00 7,931,482.90 7,946,613.24 Float quarterly: LIBOR +74 bps NALT 2014-B A2A 4/17/2017 0.73% 65490BAB1 4/17/2017 5,152,745.41 5,145,480.03 5,152,341.94 10% clean up call NAROT 2014-B A2 6/15/2017 0.6% 65477WAB2 6/15/2017 2,048,536.75 2,047,127.35 2,048,426.74 5% collateral call NAROT 2015-A A2 9/15/2017 0.67% 65477UAB6 9/15/2017 4,678,962.20 4,673,993.15 4,678,726.38 5% collateral call NEW YORK ST DORM AUT 2/15/17 .93% 64990EJ32 2/15/2017 3,685,000.00 3,684,926.30 3,685,221.10 Make‐whole call +20 bps NEW YORK ST URBAN DEV 3/15/2016 0.63% 650035K56 3/15/2016 10,000,000.00 10,001,700.00 10,000,000.00 Make‐whole call +25 bps NY DORM AUTH-D-TXBL 3/15/2016 0.66% 64990ERF6 3/15/2016 2,500,000.00 2,500,800.00 2,505,325.00 Make‐whole call +15 bps PNC BANK NA 06/01/2018 69353REN4 6/1/2018 3,000,000.00 2,985,711.00 3,000,000.00 Float quarterly: LIBOR +42 bps PNC BANK NA 1/27/2017 1.125% 69353RCG1 1/27/2017 12,735,000.00 12,692,006.64 12,757,197.90 Call anytime on and after 10/1/15 TAOT 2014‐B A2 12/15/2016 0.4% 89231RAB0 12/15/2016 89,939.85 89,915.84 89,932.06 5% collateral call TAOT 2013-A A3 1/17/2017 0.55% 89236RAC3 1/17/2017 459,727.83 459,534.28 460,015.16 5% collateral call TAOT 2014-A A31 2/15/2017 0.67% 89231MAC9 12/15/2017 1,076,199.23 1,073,926.29 1,073,971.16 5% collateral call TAOT 2015-A A2 7/17/2017 0.71% 89236WAB4 7/17/2017 5,537,052.62 5,532,384.88 5,537,000.01 5% collateral call TAOT 2015-C A2A 2/15/2018 0.93% 89231TAB6 2/15/2018 5,550,000.00 5,541,569.55 5,549,553.78 5% collateral call THE COCA-COLA COMPANY 10/27/17 191216BR0 10/27/2017 1,500,000.00 1,494,411.00 1,499,340.00 Make‐whole call +5 bps TOYOTA MOTOR CREDITCORP 9/15/2016 2% 89233P5E2 9/15/2016 895,000.00 902,223.55 911,512.75 Make‐whole call +20 bps UNIV OF CALIFORNIA‐AN 5/15/2016 0.634% 91412GUT0 5/15/2016 1,830,000.00 1,830,677.10 1,830,000.00 Make‐whole call +5 bps UNION BANK NA 9/26/2016 0.9996% 90521APG7 9/26/2016 2,515,000.00 2,514,967.31 2,517,311.05 Float quarterly: LIBOR +75 bps TOYOTA MOTOR CREDITCORP 1/12/2018 0.57 89236TCB9 1/12/2018 13,000,000.00 12,926,810.00 13,000,000.00 Float quarterly: LIBOR +32 bps 1 UNIVERSITY CALIF REVS 07/01/2041 91412GEZ4 7/1/2017 10,880,000.00 10,876,736.00 10,880,000.00 Float monthly: LIBOR +58 bps UNION BANK NA9/26/2016 1.5% 90521APH5 9/26/2016 4,575,000.00 4,586,190.45 4,603,999.75 Call anytime on and after 8/26/16 US BANCORP 11/15/2016 2.2% 91159HHB9 11/15/2016 1,365,000.00 1,378,157.24 1,383,045.30 Call anytime on and after 10/14/16 US BANK NA CINCINNATI 1/26/2018 0.55572 90331HMR1 1/26/2018 4,500,000.00 4,478,053.50 4,503,960.00 Float quarterly: LIBOR +30 bps US BANK NA CINCINNATI 1/30/2017 0.4661% 90331HMD2 1/30/2017 4,500,000.00 4,997,750.00 4,503,960.00 Float quarterly: LIBOR +23 bps USAOT 2014-1 A31 2/15/2017 0.58% 90290KAC9 12/15/2017 1,466,097.06 1,463,735.18 1,465,524.37 10% collateral call USAOT 2015-1 A23/15/2018 0.82% 90290XAB3 3/15/2018 11,430,000.00 11,412,386.37 11,429,574.80 10% collateral call VALET 2013-2 A3 4/20/2018 0.7% 92867PAC7 4/20/2018 4,071,030.42 4,051,591.25 4,058,467.47 10% collateral call VERIZON COMMUNICATIONS 9/15/2016 1.7823 92343VBL7 9/15/2016 1,925,000.00 1,936,786.78 1,925,000.00 Float quarterly: LIBOR +153 bps VERIZON COMMUNICATIONS 9/15/2016 2.5% 92343VBN3 9/15/2016 6,500,000.00 6,550,719.50 6,553,170.00 Make‐whole call +30 bps VERIZON COMMUNICATIONS 6/9/2017 0.6306% 92343VCD4 6/9/2017 1,000,000.00 995,787.00 1,000,000.00 Float quarterly: LIBOR +40 bps VWALT 2014-A A3 4/20/2017 0.8% 92867QAD3 4/20/2017 7,023,042.46 7,003,644.82 7,027,568.25 10% clean up call VWALT 2015-A A2A 6/20/2017 0.87% 92867VAB6 6/20/2017 1,477,980.33 1,475,135.22 1,477,973.10 10% clean up call TOTAL 470,666,788.85 471,003,238.50 471,638,444.00

Notes: 1. The security has a mandatory put date of 7/1/2017. Contra Costa County invests approximately $148.5 million in the CalTRUST Short Term Fund which had assets of $1,018.4 million as of 12/31/15. The above data represents the information at the Short Term Fund level, not at the Contra Costa County account level. Exhibit VI (b)

CONTRA COSTA COUNTY WELLS CAP MANAGEMENT STRUCTURED SECURITIES December 31, 2015

DESCRIPTION CUSIP MATURITY DATE PAR MARKET COST PROVISIONS AMERICAN HONDA FINANCE 02665WAY7 9/20/2017 $500,000.00 $499,442.00 $500,000.00 Float quarterly: LIBOR +45 bps ANAHEIM FING AUTH-B 03255LGX1 5/1/2016 $750,000.00 $751,460.00 $750,000.00 Make-whole call BANK OF AMERICA NA 06050TLU4 2/14/2017 $500,000.00 $499,731.80 $500,000.00 Float quarterly: LIBOR +47 bps BANK OF AMERICA NA 06050TMB5 6/5/2017 $250,000.00 $249,321.10 $250,000.00 Float quarterly: LIBOR +45 bps BB&T CORPORATION 05531FAG8 2/16/2016 $750,000.00 $759,117.92 $766,320.00 Call anytime on or after 2/16/16 BERKSHIRE HATHAWAY FIN 084664CD1 1/12/2018 $750,000.00 $749,322.08 $750,000.00 Float quarterly: LIBOR +30 bps CISCO SYSTEMS INC 17275RAY8 6/15/2018 $750,000.00 $748,716.88 $750,000.00 Float quarterly: LIBOR +31 bps COCA-COLA CO 191216BR0 10/27/2017 $300,000.00 $299,348.87 $299,868.00 Make-whole call +5 bps FITAT 2014-2 A2A 31679KAB6 4/17/2017 $86,721.92 $86,700.73 $86,712.39 10% collateral call FITAT-151-A2A 31680GAB2 5/15/2018 $500,000.00 $499,024.32 $499,986.35 10% collateral call HAROT 2015-1 A2 43814KAB7 6/15/2017 $252,965.61 $252,797.77 $252,952.41 10% collateral call HAWAII-TXBL-REF-ES 4197915E4 8/1/2016 $750,000.00 $752,629.38 $750,000.00 Make-whole call +10 bps HDMOT 2015-1 A2A 41284BAB2 1/15/2019 $319,404.33 $318,989.82 $319,401.74 10% collateral call HOME DEPOT INC 437076BJ0 9/15/2017 $750,000.00 $751,417.13 $751,401.98 Float quarterly: LIBOR +37 bps HTMOT 2014 - A A2 41284AAB4 4/15/2018 $65,802.65 $65,742.73 $65,798.20 10% clean up call JDOT 2015-B A2 47787WAB5 6/15/2018 $400,000.00 $399,252.58 $399,986.52 10% clean up call LOS ANGELES CALIF MUN IMPT CORP LEASE REV544587B72 11/1/2016 $490,000.00 $491,558.20 $490,000.00 Make-whole call MBART-151-A2A 58772PAB4 6/15/2018 $650,000.00 $648,745.53 $649,085.94 5% collateral call MISSISSIPPI ST-B-TXBL 605581FW2 10/1/2016 $300,000.00 $300,261.00 $300,000.00 Make-whole call +20 bps PNC BANK NA 69349LAH1 1/28/2016 $750,000.00 $752,537.25 $751,785.00 Call anytime on or after 12/28/15 NAROT 2014-B A2 65477WAB2 6/15/2017 $396,490.98 $396,323.85 $396,469.70 5% collateral call TAOT 2015-A A2 89236WAB4 7/17/2017 $495,855.46 $495,594.07 $495,850.75 5% collateral call UNIV OF CALIFORNIA REVENUES 91412GUT0 5/15/2016 $250,000.00 $250,295.03 $250,000.00 Make-whole call +5 bps USAOT 2015-1 A2 90290XAB3 3/15/2018 $480,000.00 $479,435.45 $479,982.14 10% collateral call US BANK NA CINCINNATI 90331HMR1 1/26/2018 $300,000.00 $298,883.01 $300,000.00 Float quarterly: LIBOR +30 bps US BANK NA CINCINNATI 90331HMR1 1/26/2018 $450,000.00 $448,324.52 $451,206.00 10% clean up call VOLKSWAGEN GROUP AMERICA 928668AD4 5/23/2016 $500,000.00 $496,780.20 $500,000.00 Float quarterly: LIBOR +22 bps Total $12,737,240.96 $12,741,753.19 $12,756,807.11 Exhibit VII State of California Pooled Money Investment Account

Portfolio as of 12-31-15

PAR VALUES MATURING BY DATE AND TYPE Maturities in Millions of Dollars

1 day 31 days 61 days 91 days 121 days 151 days 181 days 211 days 271 days 1 year 2 years 3 years 4 years to to to to to to to to to to to to to ITEM 30 days 60 days 90 days 120 days 150 days 180 days 210 days 270 days 1 year 2 years 3 years 4 years 5 year/out

TREASURY $750 $ 4,200 $ 1,050 $ 1,700 $ 1,300 $ 3,200 $ 3,750 $ 3,000 $ 4,400 $ 8,900 $ 500 REPO

TDs $ 2,044 $ 1,448 $ 1,410 $ 296 $ 297 $ 183

AGENCY $ 1,592 $ 1,280 $ 1,350 $ 1,725 $ 900 $ 1,400 $ 430 $ 500 $ 75 $ 627 $ 781

CP $ 150 $ 640 $ 500 $ 600 $ 300 $ 200

CDs + BNs $ 4,150 $ 1,385 2,100$ $ 2,100 $ 100 800$ 650$ $ 300 CORP BND TOTAL

$ 63,063 $ 8,686 $ 8,953 $ 6,410 $ 6,421 $ 2,897 $ 5,783 $ 4,830 $ 3,500 $ 4,775 $ 9,527 $ 1,281 $- $ - PERCENT 13.8% 14.2% 10.2% 10.2% 4.6% 9.2% 7.7% 5.6% 7.6% 15.1% 2.0% 0.0% 0.0%

Notes: 1. SBA Floating Rate Securities are represented at coupon change date. 2. Mortgages are represented at current book value. 3. Figures are rounded to the nearest million. 4. Does not include AB55 and General Fund loans. Exhibit VII (a) State of California State of California Pooled Money Investment Account Market Valuation 12/31/2015 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest

United States Treasury: Bills $ 10,468,708,753.45 $ 10,482,830,783.28 $ 10,478,607,000.00 NA Notes $ 22,248,452,535.53 $ 22,247,129,027.71 $ 22,207,793,500.00 $ 24,762,324.50

Federal Agency: SBA $ 642,351,164.21 $ 642,343,909.17 $ 635,322,467.80 $ 549,995.41 MBS-REMICs $ 73,596,655.56 $ 73,596,655.56 $ 77,904,572.74 $ 348,792.53 Debentures $ 961,990,090.06 $ 961,986,867.84 $ 961,041,000.00 $ 3,893,258.30 Debentures FR $ - $ - $ - $ - Discount Notes $ 7,584,478,430.49 $ 7,593,829,138.89 $ 7,592,138,500.00 NA GNMA $ - $ - $ - $ -

Supranational Debentures $ 350,151,164.92 $ 350,151,164.92 $ 349,959,000.00 $ 626,387.50

CDs and YCDs FR $ 200,000,000.00 $ 200,000,000.00 $ 200,000,000.00 $ 197,363.48 Bank Notes $ 400,000,000.00 $ 400,000,000.00 $ 399,813,054.46 $ 351,250.00 CDs and YCDs $ 10,985,007,118.52 $ 10,985,007,118.52 $ 10,981,602,163.42 $ 9,862,947.22 Commercial Paper $ 2,385,328,869.46 $ 2,386,701,088.85 $ 2,386,066,166.67 NA

Corporate: Bonds FR $ - $ - $ - $ - Bonds $ - $ - $ - $ -

Repurchase Agreements $ - $ - $ - $ - Reverse Repurchase $ - $ - $ - $ -

Time Deposits $ 5,677,040,000.00 $ 5,677,040,000.00 $ 5,677,040,000.00 NA AB 55 & GF Loans $ 3,590,865,000.00 $ 3,590,865,000.00 $ 3,590,865,000.00 NA

TOTAL $ 65,567,969,782.20 $ 65,591,480,754.74 $ 65,538,152,425.09 $ 40,592,318.94

Fair Value Including Accrued Interest $ 65,578,744,744.03

Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

The value of each participating dollar equals the fair value divided by the amortized cost (0.999186963). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,983,739.25 or $20,000,000.00 x0.999186963.

All investments are in U.S. Dollar according to the State of California Pooled Money Investment Account

Exhibit VII (b) State of California

DISCLOSURE STATEMENT

Portfolio Holdings: Structured Notes and

Asset-Backed Securities

The Treasury Investment Division has received a number of inquiries concerning our various portfolio holdings. Questions involving structured notes, derivative products*, and asset- backed securities are the most notable.

In an effort to clarify the information provided in our monthly statements, we would like to share with you our investment positions in structured notes and asset-backed securities.

Following are the State of California Treasurer’s holdings in each category as of December 31, 2015:

* The Pooled Money Investment Account Portfolio has not invested in, nor will it invest in, Derivative Products as defined in FASB 133. Exhibit VII (b) 1. Structured Notes State of California

Structured notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. They are issued by corporations and by government-sponsored enterprises such as the Federal National Mortgage Association and the Federal Home Loan Bank System or an international agency such as the World Bank.

Securities Accountability

Structured Notes

a. Callable Agency $ 0.000 million b. LIBOR Agency Floater $ 0.000 million c. 3 month LIBOR Corporate Floater $ 0.000 million d. 3 month LIBOR Bank Floater $ 200.000 million e. 2 year CMT Corporate Floater $ 0.000 million f. 3 month T-Bill Agency Floater $ 0.000 million g. 3 month T-Bill Corporate Floater $ 0.000 million

U.S. $200.000 million As of: 12/31/15

2. Asset-Backed Securities

Asset-backed securities entitle the purchaser to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMOs), small business loans, or credit card receivables (such as ABCP).

Asset-Backed Securities

a. Small Business Administration Pools $ 642.343 million b. Agency MBS-REMIC’S $ 73.597 million (Medium term sub-total) $ 715.940 million

c. Commercial Paper (Short term sub-total) $ 239.501 million

U.S. $955.441 million As of: 12/31/15 Exhibit VII (b) State of California

Total Portfolio As of: 12/31/15 $65,567,969,782.20

Structured notes and Medium-term Asset-backed securities as a percent of portfolio: 1.40%

Short-term Asset-Backed Commercial Paper (ABCP) as a percent of portfolio: 0.36% *

Total Medium-term and Short-term Structured notes and Asset-backed securities as a percent of portfolio: 1.76%

*ABCP purchased by the Pooled Money Investment Account (PMIA) does not include Structured Investment Vehicles (SIVs) nor do any of the approved ABCP programs include SIVs as underlying assets. Exhibit VIII Portfolio Stress Test1 as of December 31, 2015

Par Value 2,570,711,453.24 Book Price 100.001 Book Value 2,570,728,827.44 Average Days to Maturity 280 Market Value 2,569,513,821.31 Coupon 0.7270% Market Price 99.953 YTM 0.6955%

Yield Change Market Value Market Price Gain/Loss2 (bps) ($) ($) (bps)

‐50 2,579,297,375.15 100.334 38.12 ‐25 2,574,392,389.33 100.143 19.01 ‐10 2,571,462,091.73 100.029 7.60 0 2,569,513,821.31 99.953 0.00 10 2,567,569,744.47 99.878 ‐7.50 25 2,564,661,463.26 99.765 ‐18.81 50 2,559,835,109.36 99.577 ‐37.62

Note: Stress Testing is a form of testing that is used to determine the stability of a given system or entity. It reveals how well a portfolio is positioned in the event the forecasts prove true. The stress test conducted on the portfolio managed by the Treasurer's Office identifies the sensitivity of our portfolio to the change in interest rate. The test result shows if the yield were to go down by 50 bps, the market value of the portfolio would increase by 38.12 bps. If the yield were to go up by 50 bps, the market value of the portfolio would decrease by 37.62 bps.

1. The stress test is conducted on the portfolio managed by the Treasurer's Office. Portfolios managed by outside contractors are excluded. All data is provided by SunGard. 2. Gain/Loss is calcuated based on the market value/price. Exhibit IX

CONTRA COSTA COUNTY TREASURER'S INVESTMENT PORTFOLIO MUNICIPAL SECURITIES December 31, 2015

Security Coupon Purchase Maturity Par Market Description CUSIP Rate YTM Date Date Value Value2 Fund4

Compton CA Community Redev Agy 204712FD0 0.0000% 6.5258% 1/3/20121 8/1/16 10,000.00 7,453.00 5033

Palo Alto USD Refunding Bond 697379UA1 1.4020% 1.4020% 8/14/12 8/1/17 440,000.00 440,000.00 7903

University of Cal Tax Revenue Bond 91412GPX7 0.6590% 0.6590% 3/14/13 5/15/16 1,240,000.00 1,240,000.00 6911

University of Cal Tax Revenue Bond 91412GPY5 0.9660% 0.9660% 3/14/13 5/15/17 175,000.00 175,000.00 7903

Chicago Prerefunded Proj & Refunding Bond 167486JB6 5.0000% 1.6188% 6/27/133 1/1/17 170,000.00 189,542.34 5057

Chicago Unrefunded Bal-Proj & Refunding Bd 167486JC4 5.0000% 2.5923% 6/27/133 1/1/17 390,000.00 421,318.77 5057

Washington State GO Bond 93974B3K6 5.0000% 1.3012% 6/27/133 1/1/18 600,000.00 696,925.06 5057

South Bend IN Refunding Revenue Bond 836496NW5 5.0000% 1.6170% 6/27/133 1/15/16 505,000.00 547,506.38 5057

Wicomico County MD GO Bond 967545R89 3.5000% 1.6386% 6/27/133 12/1/18 390,000.00 427,550.12 5057

Univ of Cal Taxable Rev Bond 91412GSX4 0.9070% 0.9070% 10/2/13 5/15/16 415,000.00 415,000.00 6911

Univ of Cal Taxable Rev Bond 91412GSZ9 2.0540% 2.0540% 10/2/13 5/15/18 195,000.00 195,000.00 7903

Cal State Taxable GO Bond 13063CFD7 1.2500% 1.0901% 11/5/13 11/1/16 125,000.00 125,586.25 7903

Cal State Taxable GO Bond 13063CFD7 1.2500% 1.0901% 11/5/13 11/1/16 790,000.00 793,705.10 6911

State of Mississippi GO Bond 605581FX0 1.0900% 1.0900% 2/18/15 10/1/17 110,000.00 110,000.00 6911

Total $5,555,000.00 $5,784,587.02

1 Date when the security was transferred from AUHSD to Contra Costa County Investment Pool managed by Treasurer's Office 2 Market Value equals Cost less purchase interest 3 Date when the security was transferred from Fund 5055 to Fund 5057 per AUHSD's request 4 Fund # 5033 - Acalanes Union High School District 5057 - Acalanes Union High School District 6911 - Contra Costa County Schools Insurance Group 7903 - Contra Costa Community College District Retiree Health Benefits [THIS PAGE INTENTIONALLY LEFT BLANK]

APPENDIX F

TABLE OF ACCRETED VALUES

F-1

[THIS PAGE INTENTIONALLY LEFT BLANK] BOND ACCRETED VALUE TABLE

Acalanes Union High School District G.O. Bonds, Series 2016C ***************************************************** FINAL PRICING NUMBERS *****************************************************

Premium CAB Bond CAB Bond CAB Bond CAB Bond CAB Bond CAB Bond 08/01/2025 08/01/2026 08/01/2027 08/01/2028 08/01/2029 08/01/2030 Date 3.6754% 2.48% 2.73% 2.94% 3.02% 3.07%

05/25/2016 3,578.60 3,890.10 3,692.10 3,503.80 3,367.85 3,245.65 08/01/2016 3,602.55 3,907.75 3,710.50 3,522.60 3,386.40 3,263.80 02/01/2017 3,668.80 3,956.20 3,761.15 3,574.40 3,437.55 3,313.90 08/01/2017 3,736.20 4,005.25 3,812.45 3,626.90 3,489.45 3,364.80 02/01/2018 3,804.85 4,054.90 3,864.50 3,680.25 3,542.15 3,416.45 08/01/2018 3,874.80 4,105.20 3,917.25 3,734.35 3,595.60 3,468.85 02/01/2019 3,946.00 4,156.10 3,970.75 3,789.25 3,649.90 3,522.10 08/01/2019 4,018.50 4,207.65 4,024.95 3,844.95 3,705.00 3,576.20 02/01/2020 4,092.35 4,259.80 4,079.90 3,901.45 3,760.95 3,631.10 08/01/2020 4,167.55 4,312.65 4,135.55 3,958.80 3,817.75 3,686.80 02/01/2021 4,244.15 4,366.10 4,192.00 4,017.00 3,875.40 3,743.40 08/01/2021 4,322.15 4,420.25 4,249.25 4,076.05 3,933.90 3,800.85 02/01/2022 4,401.55 4,475.05 4,307.25 4,135.95 3,993.35 3,859.20 08/01/2022 4,482.45 4,530.55 4,366.05 4,196.75 4,053.65 3,918.45 02/01/2023 4,564.85 4,586.70 4,425.65 4,258.45 4,114.85 3,978.60 08/01/2023 4,648.70 4,643.60 4,486.05 4,321.05 4,176.95 4,039.70 02/01/2024 4,734.15 4,701.20 4,547.30 4,384.60 4,240.05 4,101.70 08/01/2024 4,821.15 4,759.50 4,609.35 4,449.05 4,304.05 4,164.65 02/01/2025 4,909.75 4,818.50 4,672.25 4,514.45 4,369.05 4,228.55 08/01/2025 5,000.00 4,878.25 4,736.05 4,580.80 4,435.05 4,293.50 02/01/2026 4,938.75 4,800.70 4,648.15 4,502.00 4,359.40 08/01/2026 5,000.00 4,866.20 4,716.45 4,570.00 4,426.30 02/01/2027 4,932.65 4,785.80 4,639.00 4,494.25 08/01/2027 5,000.00 4,856.15 4,709.05 4,563.25 02/01/2028 4,927.55 4,780.15 4,633.30 08/01/2028 5,000.00 4,852.35 4,704.40 02/01/2029 4,925.60 4,776.60 08/01/2029 5,000.00 4,849.95 02/01/2030 4,924.40 08/01/2030 5,000.00