HomeMy WebLinkAbout11-09-2022 Administration Committee Meeting Complete Agenda PacketC)C6SAN
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY SANITATION DISTRICT
SPECIAL NOTICE REGARDING CORONAVIRUS (COVID-19)
AND ATTENDANCE AT PUBLIC MEETINGS
Governor Newsom signed Assembly Bill (AB) 361 on September 16, 2021, which, in part,
addresses the conduct of public meetings in light of the continued State of Emergency
order.
Effective October 1, 2021, AB 361 suspends the requirements located in California
Government Code, Section 54953, Subdivision (b), Paragraph (3) specifically pertaining
to the conduct of public meetings. As such, the Orange County Sanitation District (OC
San) Board of Directors has determined that due to the size of OC San's Board of Directors
(25), and the health and safety of the members, the Board of Directors will be participating
in meetings of the Board telephonically and via Internet accessibility.
PUBLIC PARTICIPATION
Your participation is always welcome. OC San offers several ways in which to interact
during meetings. You will find information as to these opportunities below.
ONLINE MEETING PARTICIPATION
You may join the meeting live via Teams on your computer or similar device or web
browser by using the link below:
Click here to join the meeting
We suggest testing joining a Teams meeting on your device prior to the commencement
of the meeting. For recommendations, general guidance on using Teams, and
instructions on joining a Teams meeting, please click here.
Please mute yourself upon entry to the meeting. Please raise your hand if you wish to
speak during the public comment section of the meeting. The Clerk of the Board will call
upon you by using the name you joined with.
Meeting attendees are not provided the ability to make a presentation during the meeting.
Please contact the Clerk of the Board at least 48 hours prior to the meeting if you wish to
present any items. Additionally, camera feeds may be controlled by the meeting
moderator to avoid inappropriate content.
HOW TO PARTICIPATE IN THE MEETING BY TELEPHONE
To join the meeting from your phone: Dial (213) 279-1455
When prompted, enter the Phone Conference ID: 983 562 394#
All meeting participants may be muted during the meeting to alleviate background noise.
If you are muted, please use *6 to unmute. You may also mute yourself on your device.
Please raise your hand to speak by using *5 during the public comment section of the
meeting. The Clerk of the Board will call upon you by using the last 4 digits of your phone
number as identification.
NOTE: All attendees will be disconnected from the meeting at the beginning of
Closed Session. If you would like to return to the Open Session portion of the
meeting, please login or dial -in to the Teams meeting again and wait in the Lobby
for admittance.
VIEW THE MEETING ONLINE ONLY
The meeting will be available for online viewing only at:
https://ocsd.legistar.com/Calendar.aspx
HOW TO SUBMIT A COMMENT
You may provide verbal comment in real time during the meeting. In order to provide a
verbal comment, please raise your hand as described above or alert the Clerk of the Board
before or during the public comment period.
You may also submit your comments and questions in writing for consideration in advance
of the meeting by using the eComment feature available online at:
https://ocsd.legistar.com/Calendar.aspx or sending them to OCSanClerk(o)_ocsan.gov with
the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to your
comment)" or "PUBLIC COMMENT NON -AGENDA ITEM".
You may also submit comments and questions for consideration during the meeting by
using the eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx.
The eComment feature will be available for the duration of the meeting.
All written public comments will be provided to the legislative body and may be read into
the record or compiled as part of the record.
TECHNICAL SUPPORT PRIOR TO AND DURING MEETINGS
For technical assistance before and during the meeting, please call 714-593-7431. For
any other questions and/or concerns, please contact the Clerk of the Board's office at
714-593-7433. Thank you, in advance, for your patience in working with these
technologies. We appreciate your interest in OC San!
10844 Avenue
Fountainn Valley, CA 92708
OC6SAN714...2.241,
ORANGE COUNTY SANITATION DISTRICT www.ocsan_gov
November 2, 2022
NOTICE OF REGULAR MEETING
ADMINISTRATION COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
Wednesday, November 9, 2022 — 5:00 P.M.
ACCESSIBILITY FOR THE GENERAL PUBLIC
Your participation is always welcome. Specific information as to how to
participate in this meeting is detailed in the Special Notice attached to
this agenda. In general, OC San offers several ways in which to interact
during meetings: you may join the meeting live via Teams on your
computer or similar device or web browser, join the meeting live via
telephone, view the meeting online, and/or submit comments for
consideration before or during the meeting.
The Regular Meeting of the Administration Committee of the Orange County
Sanitation District will be held at the above location and in the manner
indicated on Wednesday, November 9, 2022 at 5:00 p.m.
Serving:
Anaheim
Brea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alam itos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
Our Mission. To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
ADMINISTRATION COMMITTEE
MEETING DATE
BOARD MEETING DATE
11 /09/22
11116122
12/14/22
12115122 **
JANUARY DARK
01/25/23
02/08/23
02/22/23
03/08/23
03/22/23
04/12/23
04/26/23
05/10/23
05/24/23
06/14/23
06/28/23
07/12/23
07/26/23
AUGUST DARK
08/23/23
09/13/23
09/27/23
10/11 /23
10/25/23
* Meeting will be held on the third Wednesday of the month
** Meeting will be held on the third Thursday of the month
ROLL CALL
ADMINISTRATION COMMITTEE
Finance, Information Technology, Environmental Services
and Human Resources
Meeting Date: November 9, 2022 Time: 5:00 p.m.
Adjourn:
COMMITTEE MEMBERS (13)
Glenn Parker, Chair
Anthony Kuo, Vice -Chair
Brad Aver
Art Brown
Kim Carr
Rose Espinoza
Patrick Harper
Jordan Nefulda
Andrew Nguyen
David Shawver
John Withers
Chad Wanke Board Chair
Ryan Gallagher (Board Vice -Chair)
OTHERS
Brad Hogin, General Counsel
STAFF
Jim Herberg, General Manager
Rob Thompson, Assistant General Manager
Lorenzo Tyner, Assistant General Manager
Celia Chandler, Director of Human Resources
Director of Engineering
-KathyMillea,
Riaz Moinuddin, Director of Operations & Maintenance
Lan Wibor , Director of Environmental Services
Kelly Lore, Clerk of the Board
ORANGE COUNTY SANITATION DISTRICT Effective 10/19/2022
BOARD OF DIRECTORS
Complete Roster
ALTERNATE
AGENCY/CITIES ACTIVE DIRECTOR DIRECTOR
Anaheim
Stephen Faessel
Gloria Ma'ae
Brea
Glenn Parker
Cecilia Hupp
Buena Park
Art Brown
Connor Traut
Cypress
Paulo Morales
Anne Hertz-Mallari
Fountain Valley
Patrick Harper
Ted Bui
Fullerton
Jesus J. Silva
Nick Dunlap
Garden Grove
Steve Jones
John O'Neill
Huntington Beach
Kim Carr
Dan Kalmick
Irvine
Anthony Kuo
Farrah N. Khan
La Habra
Rose Espinoza
Steve Simonian
La Palma
Marshall Goodman
Nitesh Patel
Los Alamitos
VACANT
Jordan Nefulda
Newport Beach
Brad Avery
Joy Brenner
Orange
Kim Nichols
Chip Monaco
Placentia
Chad Wanke
Ward Smith
Santa Ana
Johnathan Ryan Hernandez
Nelida Mendoza
Seal Beach
Sandra Massa-Lavitt
Schelly Sustarsic
Stanton
David Shawver
Carol Warren
Tustin
Ryan Gallagher
Austin Lumbard
Villa Park
Chad Zimmerman
Robert Collacott
Sanitary/Water Districts
Costa Mesa Sanitary District Bob Ooten
Art Perry
Midway City Sanitary District Andrew Nguyen
Mark Nguyen
Irvine Ranch Water District John Withers
Douglas Reinhart
Yorba Linda Water District Brooke Jones
Tom Lindsey
County Areas
Board of Supervisors Donald P. Wagner Doug Chaffee
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATION COMMITTEE
Regular Meeting Agenda
Wednesday, November 9, 2022 - 5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
ACCOMMODATIONS FOR THE DISABLED: If you require any special disability related accommodations,
please contact the Orange County Sanitation District (OC San) Clerk of the Board's office at (714) 593-7433 at
least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type
of accommodation requested.
AGENDA POSTING: In accordance with the requirements of California Government Code Section 54954.2, this
agenda has been posted outside the main gate of the OC San's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, and on the OC San's website at www.ocsan.gov not less than 72 hours
prior to the meeting date and time above. All public records relating to each agenda item, including any public
records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are
available for public inspection in the office of the Clerk of the Board.
AGENDA DESCRIPTION: The agenda provides a brief general description of each item of business to be
considered or discussed. The recommended action does not indicate what action will be taken. The Board of
Directors may take any action which is deemed appropriate.
MEETING AUDIO: An audio recording of this meeting is available within 24 hours after adjournment of the
meeting at https://ocsd.legistar.com/Calendar.aspx or by contacting the Clerk of the Board at (714) 593-7433.
NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, the item must be
submitted in writing to the Clerk of the Board: Kelly A. Lore, MMC, (714) 593-7433 / klore@ocsan.gov at least 14
days before the meeting.
FOR ANY QUESTIONS ON THE AGENDA, BOARD MEMBERS MAY CONTACT STAFF AT:
General Manager: Jim Herberg, jherberg@ocsan.gov / (714) 593-7300
Asst. General Manager: Lorenzo Tyner, Ityner@ocsan.gov / (714) 593-7550
Asst. General Manager: Rob Thompson, rthompson@ocsan.gov / (714) 593-7310
Director of Human Resources: Celia Chandler, cchandler@ocsan.gov / (714) 593-7202
Director of Engineering: Kathy Millea, kmillea@ocsan.gov / (714) 593-7365
Director of Environmental Services: Lan Wiborg, Iwiborg@ocsan.gov / (714) 593-7450
Director of Operations & Maintenance: Riaz Moinuddin, rmoinuddin@ocsan.gov / (714) 593-7269
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 9, 2022
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL AND DECLARATION OF QUORUM:
Clerk of the Board
PUBLIC COMMENTS:
Your participation is always welcome. Specific information as to how to participate in a meeting is detailed in the
Special Notice attached to this agenda. In general, OC San offers several ways in which to interact during
meetings: you may join the meeting live via Teams on your computer or similar device or web browser, join the
meeting live via telephone, view the meeting online, and/or submit comments for consideration before or during
the meeting.
You may provide verbal comment in real time during the meeting. In order to provide a verbal comment, please
raise your hand (directions provided in the Special Notice attached to this agenda) or alert the Clerk of the Board
before or during the public comment period.
You may submit your comments and questions in writing for consideration in advance of the meeting by using the
eComment feature available online at: https://ocsd.legistar.com/Calendar.aspx or sending them to
OCSanClerk@ocsan.gov with the subject line "PUBLIC COMMENT ITEM # (insert the item number relevant to
your comment)"or "PUBLIC COMMENT NON -AGENDA ITEM".
You may also submit comments and questions for consideration during the meeting by using the eComment
feature available online at: https://ocsd.legistar.com/Ca/endar.aspx. The eComment feature will be available for
the duration of the meeting.
All written public comments will be provided to the legislative body and may be read into the record or compiled as
part of the record.
REPORTS:
The Chairperson and the General Manager may present verbal reports on miscellaneous matters of general
interest to the Directors. These reports are for information only and require no action by the Directors.
CONSENT CALENDAR:
Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion,
without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in
the regular order of business.
APPROVAL OF MINUTES
RECOMMENDATION:
2022-2584
Approve Minutes of the Regular Meeting of the Administration Committee held October
12, 2022.
Originator: Kelly Lore
Page 1 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 9, 2022
K
3
Attachments: Agenda Report
10-12-2022 Administration Committee Minutes
CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER 2022-2386
ENDED SEPTEMBER 30, 2022
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District First Quarter Financial Report
for the period ended September 30, 2022.
Originator: Lorenzo Tyner
Attachments: Agenda Report
Consolidated Financial Report for the First Quarter Ended
9/30/2022
SERVICENOW IT SERVICE MANAGEMENT LICENSE RENEWAL 2022-2590
RECOMMENDATION:
A. Approve a Purchase Order to Insight Public Sector for the purchase of
ServiceNow License Renewal using the OMNIA Partners Public Sector (formerly
U.S. Communities) cooperative contract #4400006644 for a one-year contract
for the period of December 30, 2022 through December 29, 2023 for a total
amount not to exceed $112,408, plus tax and delivery (if applicable); and
B. Approve a contingency of $11,241 (10%).
Originator: Lorenzo Tyner
Attachments: Agenda Report
4. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO 2022-2595
THE PRE -APPROVED OEM SOLE SOURCE LIST
RECOMMENDATION: Recommend to the Board of Directors to:
A. Receive and file Orange County Sanitation District purchases made under the
General Manager's authority for the period of July 1, 2022 to September 30,
2022; and
B. Approve the following additions to the pre -approved OEM Sole Source List:
• BEAMEX - Maintenance and Support for CMX Calibration Software and CMX
Business Bridge Software
Page 2 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 9, 2022
• FORD HALL COMPANY INC. - Weir Wolf/Algae Sweep Automation
Cleaning Equipment Parts and Service
• MIDWAY MANUFACTURING & MACHINE - Custom Brackets & Fittings for
Vehicles / Electric Carts and Portable Equipment
• VAPEX ENVIRONMENTAL TECHNOLOGIES - SENTINEL Scrubber
Monitor/Controller Products
Originator:
Attachments:
NON -CONSENT:
4i
.,1
Lorenzo Tyner
Agenda Report
COOPERATIVE PROCUREMENT AGREEMENTS
RECOMMENDATION: Recommend to the Board of Directors to:
f►��Ykb�•f:3'a
Authorize the purchasing of information technology products, services, and solutions
utilizing Cooperative Procurement Agreements (CPA) such as, but not limited to,
OMNIA Partners Public Sector (formerly U.S. Communities), NASPO ValuePoint, and
U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award Schedule
(MAS) for the period January 1, 2023 through December 31, 2023 for a total amount
not to exceed $2,000,000, in accordance with Ordinance No. OCSD-56, Section
2.03(B) Cooperative Purchases, with two (2) one-year renewal options.
Originator:
Attachments:
Lorenzo Tyner
Agenda Report
EMISSION REDUCTION CREDITS BROKER SOLICITATION
RECOMMENDATION: Recommend to the Board of Directors to:
2022-2587
Approve the solicitation for an Emission Reduction Credits (ERCs) brokerage firm to
identify and secure a buyer(s) for the sale of surplus Reactive Organic Gases (ROG)
ERCs at the best available value and to handle all market evaluations of ERCs,
negotiations, and financial transactions with all appropriate parties.
Originator: Lan Wiborg
Attachments: Agenda Report
Presentation - Emission Reduction Credits
Page 3 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 9, 2022
7. ORANGE COUNTY SANITATION DISTRICT ANNUAL 2022-2387
COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR END JUNE
30, 2022
RECOMMENDATION: Recommend to the Board of Directors to:
Receive and file the Orange County Sanitation District's (OC San) Annual
Comprehensive Financial Report (ACFR) for the year ended June 30, 2022, prepared
by staff and audited by Davis Farr, Certified Public Accountants, along with the
following reports prepared by Davis Farr:
1. Report to the Board of Directors;
2. Independent Accountants' Report on Agreed -Upon Procedures Applied to
Appropriations Limit Worksheets; and
3. 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.
Originator: Lorenzo Tyner
Attachments: Aaenda Report
Report to the Board of Directors
Independent Accountant's Report on Applying Agreed -Upon
Procedures Related to Appropriations Limit Calculation
Report on Internal Control Over Financial Reporting
Annual Comprehensive Financial Report for the Year Ended
6/30/2022
Presentation - Annual Comprehensive Financial Report
Presentation - Davis Farr
INFORMATION ITEMS:
8. HUMAN RESOURCES DEPARTMENT OVERVIEW 2022-2606
RECOMMENDATION:
Information Item.
Originator: Celia Chandler
Attachments: Agenda Report
Presentation - HR Department Update
DEPARTMENT HEAD REPORTS:
Page 4 of 5
ADMINISTRATION COMMITTEE Regular Meeting Agenda Wednesday, November 9, 2022
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
At this time Directors may request staff to place an item on a future agenda.
ADJOURNMENT:
Adjourn the Committee meeting until the Regular Meeting of the Administration Committee on
December 14, 2022 at 5:00 p.m.
Page 5 of 5
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2584 Agenda Date: 11/9/2022 Agenda Item No: 1.
FROM: James D. Herberg, General Manager
Originator: Kelly A. Lore, Clerk of the Board
SUBJECT:
APPROVAL OF MINUTES
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Approve Minutes of the Regular Meeting of the Administration Committee held October 12, 2022.
BACKGROUND
In accordance with the Board of Directors Rules of Procedure, an accurate record of each meeting
will be provided to the Directors for subsequent approval at the following meeting.
1:7=111A%1LI11&3IF_1z117_1:713�
:Z .7[1iMe , 0[SX911My_1,0i►49iZ!
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Minutes of the Administration Committee meeting held October 12, 2022
Orange County Sanitation District Page 1 of 1 Printed on 11/1/2022
powered by LegistarTIM
Orange County Sanitation District
Minutes for the
ADMINISTRATION COMMITTEE
OC6SAN
ORANGE COUNTY SANITATION DISTRICT
CALL TO ORDER
Wednesday, October 12, 2022
5:00 PM
Board Room
Administration Building
10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
A regular meeting of the Administration Committee of the Orange County Sanitation District
was called to order by Committee Chair Glenn Parker on Wednesday, October 12, 2022 at
5:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair Parker
stated that the meeting was being held telephonically and via Internet accessibility. Chair
Parker led the flag salute.
ROLL CALL AND DECLARATION OF QUORUM:
The Clerk of the Board declared a quorum present as follows:
PRESENT: Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Rose Espinoza,
Ryan Gallagher, Patrick Harper, Andrew Nguyen, David Shawver,
Chad Wanke and John Withers
ABSENT: Kim Carr
STAFF PRESENT: Kelly Lore, Clerk of the Board, and Joshua Martinez were present in the
Board Room. Jim Herberg, General Manager; Rob Thompson, Assistant General Manager;
Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources;
Kathy Millea, Director of Engineering; Riaz Moinuddin, Director of Operations and
Maintenance; Lan Wiborg, Director of Environmental Services; Jennifer Cabral; Tanya
Chong; John Frattali; Tina Knapp; Laura Maravilla; Rob Michaels; Wally Ritchie; Loc Trang;
Thomas Vu; and Ruth Zintzun were in attendance telephonically.
OTHERS PRESENT: Brad Hogin, General Counsel, was in attendance telephonically.
PUBLIC COMMENTS:
None.
REPORTS:
Chair Parker did not provide a report.
General Manager Jim Herberg announced that the State of OC San would be held virtually on
November 15, 2022 at 9.00 a.m.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES
Originator: Kelly Lore
2022-2554
Page 1 of 4
ADMINISTRATION Minutes October 12, 2022
COMMITTEE
MOVED, SECONDED, AND DULY CARRIED TO:
Approve Minutes of the Regular Meeting of the Administration Committee held
September 14, 2022.
AYES: Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Ryan Gallagher,
Patrick Harper, Andrew Nguyen, David Shawver, Chad Wanke and
John Withers
NOES: None
ABSENT: Kim Carr and Rose Espinoza
ABSTENTIONS: None
Director Rose Espinoza arrived at the meeting at approximately 5:08 p.m.
NON -CONSENT:
2. PLANT NO. 1 AND PLANT NO. 2 DATA CENTER NETWORK 2022-2552
EQUIPMENT REPLACEMENT
Originator: Lorenzo Tyner
IT Manager Rob Michaels provided a brief introduction to the item and stated that the
sales tax added to the professional services should be removed in the
recommendation.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Purchase Order Contract to ePlus Technology, Inc. for the Purchase
of IT Hardware (Plant No. 1 and Plant No. 2 Data Center Network Equipment
Replacement), Specification No. E-2022-134013D, for a total amount not to
exceed $643,261.90, plus applicable sales tax;
B. Approve a Purchase Order to ePlus Technology, Inc. using the U.S. General
Services Administration's (GSA) Schedule 84 Contract Number GS-35F-303DA
for the purchase of professional services to implement and configure the Plant
No. 1 and Plant No. 2 Data Center Network, for a total amount not to exceed
$90,433.60, in accordance with Ordinance No. OC SAN-56, Section 2.03(B)
Cooperative Purchases; and
C. Approve a contingency in the amount of $73,369.55 (10%) for both the
Purchase Order Contract and Purchase Order.
AYES: Glenn Parker, Anthony Kuo, Brad Avery, Art Brown, Rose Espinoza,
Ryan Gallagher, Patrick Harper, Andrew Nguyen, David Shawver,
Chad Wanke and John Withers
NOES: None
Page 2 of 4
ADMINISTRATION Minutes October 12, 2022
COMMITTEE
ABSENT: Kim Carr
ABSTENTIONS: None
INFORMATION ITEMS:
3. FINANCIAL MANAGEMENT DIVISION 2022-2555
4.
5.
Originator: Lorenzo Tyner
Controller Wally Ritchie provided a PowerPoint presentation regarding the Financial
Management division which included an overview of the following: the budget plan,
revenue and accounts receivable, accounts payable, payroll, project controls, capital
assets, treasury, financial reporting, insurance, and property management.
ITEM RECEIVED AS AN:
Information Item.
HUMAN RESOURCES: RISK MANAGEMENT
Originator: Celia Chandler
Director of Human Resources Celia Chandler introduced Safety and Health Supervisor
John Frattali who presented a PowerPoint presentation regarding Risk Management's
core business functions including safety and health, emergency management, and
physical security; and also provided a list of safety awards and recognition received in
the last year.
Information Item.
HEADQUARTERS COMPLEX AT PLANT NO. 1, PROJECT NO. 2022-2558
P1-128A - QUARTERLY UPDATE
Originator: Kathy Millea
Director of Engineering Kathy Millea provided a PowerPoint presentation regarding the
Headquarters Complex Project at Plant No. 1 which included an overview of the site
plan, the building layout, an update of the progress made, as well as a look into the
mass timber diagrid, a breakdown of those involved, a brief overview of the project
timber and steel, upcoming activities, and the project status which included an overview
of the budget and schedule. Lastly, Ms. Millea provided a quick tutorial on how to
access the live camera footage and a slide on the "topping off beam" which is available
to be signed by Directors and staff before installation.
ITEM RECEIVED AS AN:
Information Item.
Page 3 of 4
ADMINISTRATION Minutes October 12, 2022
COMMITTEE
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF
ANY:
None.
BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING:
None.
ADJOURNMENT:
Chair Parker declared the meeting adjourned at 5:41 p.m. to the next Regular Administration
Committee meeting to be held on Wednesday, November 9, 2022 at 5:00 p.m.
Submitted by:
Kelly A. Lore, MMC
Clerk of the Board
Page 4 of 4
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2386 Agenda Date: 11/9/2022 Agenda Item No: 2.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
CONSOLIDATED FINANCIAL REPORT FOR THE FIRST QUARTER ENDED SEPTEMBER 30,
2022
GENERAL MANAGER'S RECOMMENDATION
IV:tole] 1TAIf•1a101�7_,11[61,01M - •- i 0FroIii3.10 i01 ona91 Rag re= on
Receive and file the Orange County Sanitation District First Quarter Financial Report for the period
ended September 30, 2022.
BACKGROUND
Included in this consolidated report are the following quarterly financial reports for the period ended
September 30, 2022:
• First Quarter Budget Review
The Budget Review Summary provides the Directors, staff, and general public with a
comprehensive overview of the financial results of the Orange County Sanitation District (OC
San) through the first quarter ended September 30, 2022.
• Quarterly Treasurer's Report
This section reports on financial portfolio performance with respect to OC San's funds. Both
Long -Term and Liquid Operating Monies Portfolios are summarized. A performance summary
table can be found on page 2 of this agenda report. The report also contains information on
the U.S. and global economic outlook from OC San's investment manager, Chandler Asset
Management.
• Certificates of Participation Quarterly Report
The report includes a summary of each outstanding debt issuance and a comparative chart
illustrating the COP rate history.
RELEVANT STANDARDS
• Quarterly financial reporting
Orange County Sanitation District Page 1 of 3 Printed on 11/1/2022
powered by LegistarTIM
File #: 2022-2386
ADDITIONAL INFORMATION
Agenda Date: 11 /9/2022 Agenda Item No: 2.
The quarterly treasurer's report contained within the Consolidated Financial Reports for the First
Quarter Ended September 30, 2022 is being submitted in accordance with OC San's investment
policy that requires the report be submitted to the governing body following the end of each quarter
and includes the following information:
• Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid
operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term
portfolio as identified in the investment policy; and the time -weighted total rate of return for the
portfolio for the prior three months, six months, nine months, twelve months and since
inception compared to the Benchmark returns for the same periods:
Portfolio Performance Summary
As of Sentember 30. 2022
Liquid Operating Monies (%)
Long -Term Operating Monies (%)
Total Rate
of Return
Benchmark
Total Rate
of Return
Benchmark
3 Months
0.35
0.46
701
-2.26
6 Months
0.39
0.57
-2.94
-3.20
9 Months
0.38
0.61
-5.78
-6.34
12 Months
0.38
0.62
-6.38
-6.98
Annualized Since Inception 30 Nov 2014
0.92
0.85
0.86
0.75
• A listing of individual securities held at the end of each reporting period (see the detailed
listings of each security contained within the report).
• Cost and market values of the portfolios:
Liquid Operating Long -Term
Cost $109.4 M $745.9 M
Market Value $109.5 M $700.2 M
• Modified duration of the portfolio compared to the Benchmark:
Liquid Operating Long -Term
OC San Policy < 0.50 < 5.00
Benchmark 0.15 2.51
Portfolio 0.28 2.41
• Dollar change in value of the portfolio for a one percent (1 %) change in interest rates:
Liquid Operating - $388,378
Long- Term - $17,250,024
• None of the portfolios are currently invested in reverse repurchase agreements.
Orange County Sanitation District Page 2 of 3
Printed on 11/1/2022
powered by LegistarT"
File #: 2022-2386
Agenda Date: 11/9/2022 Agenda Item No: 2.
• The percent of the Liquid Operating Monies portfolio maturing within 90 days: 28.4%
• Average portfolio credit quality:
Liquid Operating - AA+/Aa1
Long- Term - AA/Aa1
• Percent of portfolio with credit ratings below "A" by any rating agency and a description of
such securities:
Liquid Operating - Percent of portfolio - 1.8%
Long- Term - Percent of portfolio - 0.8%
Cost
Maturity
Moody
S&P
Fitch
Date
Virginia Electric Power Corp Callable Note
$2,003,940.00
3/15/2023
A2
BBB+
A
SLMA Student Loan Trust 2008-9 A
$8,448.07
4/25/2023
Ba3
B-
B
AMRESCO Residential Securities 1999-1 A
$87,577.91
6/25/2029
NR
BBB
A
Virginia Electric Power Corp Callable Note
$5,736,523.40
5/15/2027
A2
BBB+
A
• All investments are in compliance with this policy and the California Government Code, except
for the following Lehman Brother holdings that OC San is pursuing collection through the
bankruptcy court:
Lehman Brothers Note -Defaulted $ 600,000 par value purchased 9/19/2008
Lehman Brothers Note -Defaulted $2,000,000 par value purchased 9/18/2008
• Sufficient funds are available for the OC San to meet its operating expenditure requirements
for the next six months.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Consolidated Financial Report for the First Quarter Ended September 30, 2022
Orange County Sanitation District Page 3 of 3 Printed on 11/1/2022
powered by LegistarTM
Orange county Sanitation District
First Quarter
Financial Report
For the period ended September 30, 2022
\1
`F
A WE
t
x f
-
fo
-,r, r t
*h'';
1. l zc+n'Fh
Orange County, California
Table of Contents
ExecutiveSummary....................................................................................................................1
Budget Review
Section 1 — Consolidated Financial Reports.........................................................................1
Section 2 — Operating Budget Review
Chart of Cost per Million Gallons by Department....................................................1
Chart of Collection, Treatment, & Disposal Expenses by Major Category ...............1
Divisional Contributions to Cost Per Million Gallons................................................2
Comparison of Expenses by Department................................................................3
Summary of Collection, Treatment, & Disposal Expenses by Major Category ......... 4
Summary of Revenues...........................................................................................5
Summary of Collection, Treatment, & Disposal Expenses by Line Item ..................6
Summary of Collection, Treatment, & Disposal Expenses by Process ....................8
Chartof Staffing Trends..........................................................................................9
Section 3 — Capital Improvement Program Budget Review
Chart of Capital Improvement Program By Process Area and Project Driver ..........1
Summary of Capital Improvement Construction Requirements — Current Year ....... 2
Summary of Capital Improvement Construction Requirements — Project Life .........6
Section 4 — Capital Assets Schedule & Debt Service Budget Review
Capital Assets Schedule.........................................................................................1
Debt Service Budget Review..................................................................................1
Section 5 — Self Insurance Budget Review
General Liability and Property Fund Budget Review...............................................1
Workers' Compensation Fund Budget Review........................................................2
Quarterly Treasurer's Report.......................................................................................................1
QuarterlyCOP Report.................................................................................................1
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Table of Contents
Executive Summary
Consolidated Financial Reports
For the First Quarter Ended
September 30, 2022
Included in this consolidated report are the following quarterly financial reports for the
period ended September 30, 2022:
• First Quarter Budget Review:
The Consolidated Financial Reports Section provides the Directors, staff, and the
general public with a comprehensive overview of the financial results of the
Orange County Sanitation District (OC San) through the first quarter ended
September 30, 2022.
Contained within the Budget Review Sections 2 through 5 is the budget -to -actual
status of the Collection, Treatment and Disposal Operations, Capital
Improvement Program, Debt Service, and Self -Insurance Program. Also included
is a Capital Assets Schedule as of September 30, 2022. The chart below
provides for a summary of these activities.
100%
75%
50%
25%
0%
First Quarter Results
as a Percentage of Budget
:$48-01M $1.OM
$619K $27.7M $10AM
Operating Operating Capital Debt Self
Revenue Expense Outlays Service Insurance
Various detail information can be found in this report. Below is a descriptive
summary of these activities through September 30, 2022:
a) Most major expense categories are anticipated to approximate budget.
b) Total revenues are at 0.1 percent of the $508.0 million budget, mainly due
to the timing of property tax and sewer fee distribution from the County that
occurs mostly after the first quarter. These two revenue sources make up
82.3 percent of OC San's total budgeted revenue. Other, less material
Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
revenue sources in comparison, that are tracking significantly lower than the
proportionate budget through September 30 include Capital Assessments-
IRWD, Capital Facilities Capacity Charges, Interest Earnings (Loss), CIP
Reimbursements, Grant Revenue, and Other Revenues. Overall, total
revenues are projected to approximate or be slightly below budget at year-
end. More detailed information on revenues is provided within Section 1 —
Pages 4 through 5.
c) Collection, Treatment and Disposal Costs:
As indicated within the Consolidated Financial Reports Section of this
report, the net operating requirements through the first quarter of $48.0
million is currently tracking at 23.9 percent of the $201.1 million budget. In
addition, net operating expenses have increased $5.1 million or 11.8
percent in comparison with the same period last year. Overall, staff expects
the total operating costs to remain at or slightly below budget throughout the
remainder of the year. More detailed information on operating expenses is
provided within Section 1 — Pages 1 through 3.
The total cost per million gallons is $2,891 based on flows of 180 million
gallons per day. This is $88 per million gallons, or 3.0 percent higher than
the budgeted cost per million gallons per day. A further description of these
costs and benchmarking with other agencies is contained within Section 1 —
Pages 6 through 8.
d) The total projected capital outlay cash flow of the Capital Improvement
Program (CIP) for FY 2022-23 has been revised to $268.8 million, or 100.2
percent of the board approved cash outlay of $268.2 million. The actual
cash outlay spending through the first quarter is $27.7 million, or 10.3
percent of the total budgeted outlay. More detailed information on the CIP
budget review can be found in Section 1 — Page 9 and Section 3.
• First Quarter Treasurer's Report
This section reports on financial portfolio performance with respect to OC San's
funds. Both Long -Term and Liquid Operating Monies Portfolios are summarized.
A performance summary table can be found on page 2 of this section. The report
also contains information on the national economic outlook from OC San's
money manager, Chandler Asset Management (Chandler).
Chandler notes the Long -Term Portfolio quarterly return of negative 201 basis
points outperformed the ICE BAML 1-5 Year US Corp/Govt Rated AAA -A Index
return of negative 226 basis point, while the Liquid Operating Monies Portfolio
quarterly return of 35 basis point underperformed the ICE BAML 3-Month US
Treasury Bill Index return of 46 basis points.
Chandler further notes that market volatility has intensified as financial conditions
tighten and global central banks pursue monetary policies to combat persistently
high inflation and maintain financial market stability. Labor markets and
consumer balance sheets remain strong; however, inflation is weighing heavily
Page 2
Table of Contents
Executive Summary
on consumer sentiment and beginning to impact discretionary spending.
Corporate earnings have generally performed better than expected, but warnings
are growing along with wider credit spreads. While evidence of slower economic
conditions has begun to mount, we expect the Federal Reserve to continue to
raise rates until a sustainable improvement in inflationary conditions has been
achieved. Over the near -term, we expect financial market volatility to remain
intensified and conditions tighter with persistent inflation, geopolitical risk, and the
Fed's hawkish monetary policy.
At the September meeting, the Federal Open Market Committee (FOMC)
delivered the third 75-basis point increase to the Fed Funds Rate, increasing the
range to 3.00% to 3.25%. The FOMC acknowledged spending and production
are experiencing modest growth, offset by a robust labor market and elevated
inflation metrics. We expect the Fed to continue to increase the federal funds rate
in the near term until inflationary pressures weaken.
In September, yields rose significantly across the curve. The 2-year Treasury
yield increased 79 basis points to 4.28%, the 5-year Treasury yield rose 74 basis
points to 4.09%, and the 10-year Treasury yield gained 64 basis points to 3.83%.
The spread between the 2-year Treasury yield and 10-year Treasury yield
became more inverted at -45 basis points at September month -end versus -30
basis points at August month -end. The spread was a positive 121 basis points
one year ago. The spread between 3-month and 10-year treasuries widened to
56 basis points in September compared to just 27 basis points in August. The
shape of the curve does not necessarily indicate an imminent recession but
bears watching as a better predictor of recession over the medium -term.
US Treasury yields rose sharply in September. On a year-to-date basis, the
2-year Treasury yield was up 355 basis points, the 5-year Treasury yield rose
283 basis points, and the 10-year Treasury yield gained 232 basis points. The
spread between the 2-year Treasury yield and 10-year Treasury yield inverted to
-45 basis points versus +78 basis points at year-end. The average historical
spread (since 2003) is about 130 basis points. The spread between 3-month and
10-year treasuries was 56 basis points in September compared to about 148
basis points at the start of the year.
The Consumer Price Index (CPI) increased more than expected in September,
with increases were broad based led by gains in shelter, food, and medical care
while prices for gasoline and used cars declined. Headline CPI increased 8.2%
year -over -year in September, versus expectations for an 8.1 % increase, and
down from an 8.3% year -over -year gain in August. Core CPI, which excludes
food and energy, increased 6.6% from a year ago, the highest level since 1982.
The Personal Consumption Expenditures (PCE) index rose 6.2% in August,
higher than consensus estimates of up 6.0%, but down from a 6.4% increase last
month. Core PCE was up 4.9% year -over -year in August, versus up 4.7%
year -over -year in July. Persistently elevated inflation is likely to keep the Federal
Page 3
Table of Contents
FY 2022-23 First Quarter Financial Report
Reserve on the path of tightening monetary policy as long as it continues to run
well above the Fed's longer -run target of around 2.0%.
Economic Outlook
The debate over whether the US economy is poised for a hard or soft landing
continues to evolve with economic data available to support both outcomes,
contributing to elevated market volatility. Geopolitical risks remain acute with the
energy crisis in Europe and the long-term implications of the Russia/Ukraine
conflict a well -documented calamity, China continuing to implement its zero
COVID policy and face a housing crisis, and the United Kingdom confronting
market stress due to its expansionary fiscal plans and tightening monetary policy,
all contributing to market angst. The backdrop in the United States is more
constructive on a relative basis with the most recent payrolls report showing job
growth of 263k on the month, a three-month moving average of 372k, and the
unemployment rate down to 3.5%. Despite two quarters in a row of negative
GDP growth in the first half of 2022, softening ISM Manufacturing and stable ISM
Services releases, exhibiting the transition of the economy away from the impact
of COVID, the mosaic of data in the domestic economy remains inconsistent with
a recession in Chandler's view. However, the risk of a deteriorating economy in
the first half of 2023 remains as financial conditions continue to become more
restrictive.
The pace of the Federal Reserve's Quantitative Tightening (QT) increased to $95
billion per month and the Fed Funds rate moved higher by 1.50% during the
quarter to a current range of 3.00% to 3.25%. Future increases in the Fed Funds
rate are forecasted in November and December and it is likely the terminal Fed
Funds rate is at least 4.5% in this cycle as inflation metrics continue to run well
above the Federal Reserve's 2% objective. Core CPI on a year over year basis
ticked up by 0.3pp in September to 6.6% and core PCE inflation, as of August,
ticked up 0.2pp on an annualized basis from the prior month to 4.9%
year -over -year. The Chandler team forecasts inflation will moderate in coming
months but remain challenged to approach the Federal Reserve's 2% objective
over the next 12 to 24 months, signaling monetary policy will need to be
maintained in a restrictive setting over an intermediate time horizon.
One of the more significant adjustments to financial conditions during the quarter
was the move higher in both nominal and real interest rates, offset by the decline
in breakeven inflation rates (Nominal Rate = Break Even Inflation Rate + Real
Rate). Real rates had been in negative territory when financial conditions were
exceptionally accommodative, and the Fed Funds rate was set close to the zero
lower bound; Federal Reserve officials have noted an increase in real rates into
positive territory would be consistent with tighter financial conditions and based
on the change in rates during the quarter this objective has been achieved.
Additionally, the move lower in US Treasury TIPS breakeven inflation rates is
consistent with long-term inflation metrics remaining anchored; based on longer
term inflation metrics market participants remain confident in the Federal
Page 4
Table of Contents
Executive Summary
Reserve's ability to meet its objective of stable prices. Both investment grade and
high yield credit spreads were relatively stable on a quarter over quarter basis,
despite the volatility intraquarter, and significantly higher on a year-to-date basis.
Market volatility is forecasted to remain elevated and correlated with the lack of
visibility on the timing and magnitude of an improvement in inflation metrics and
therefore when the Federal Reserve will be able to slow the pace of policy
tightening.
First Quarter Certificates of Participation (COP) Report
The report includes a summary of each outstanding debt issuance and a
comparative chart illustrating the COP rate history.
Page 5
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Page 6
Table of Contents
Consolidated Financial Reports
First Quarter Financial Report
September 30, 2022
The Financial Management Division is pleased to present the FY 2022-23 first quarter
financial report. This report provides a comprehensive overview of the financial activities
of the Orange County Sanitation District (OC San) and reports on the status of all
capital projects in progress. A summary of the sections contained within this report is
provided below.
Operating Budget Review: This section reports on collection, treatment, and disposal
net operating requirements.
At September 30, 2022, 23.9 percent, or $48.0 million of the FY 2022-23 net operating
budget of $201.1 million has been expended. Net operating expenses increased from
the same period last year by $5.1 million, or 11.8 percent, mainly due to an increase of
$1.8 million in Operating Materials and Supplies, $1.6 million in Salaries and Benefits,
$841,000 in Utilities, $776,000 in Contractual Services, $307,000 in Professional
Services, and a decrease of $258,000 in indirect costs allocated out to capital projects,
partially offset by a decrease of $336,000 in Repairs and Maintenance, $132,000 in
Administrative Expenses, and $66,000 in Training and Meetings. These and other
variances that factor into this net increase in expenses are discussed in more detail
below. Overall, staff expects the total operating costs to remain at or slightly
below budget through the remainder of the year.
At September 30, 2022, 0.1 percent, or $619,000 of the FY 2022-23 budgeted total
revenues of $508.0 million has been recognized. Revenues decreased from the same
period last year by $176.8 million, or 99.7 percent, mainly due to prior fiscal year receipt
of $164.4 million from issuance of Revenue Refunding Certificates of Participation
(COP), Series 2021A in the first quarter. Other decreases include $13.1 million in
Interest Earnings, $1.0 million in Property Taxes, $511,000 in Capital Facilities Capacity
Charges, $106,000 in Service Fees, and $77,000 in Power Sales, which are offset by
an increase of $1.1 million in Permit Fees, $1.0 million in Intra District Sewer Use-
IRWD, $97,000 in Capital Assessments-IRWD, and $57,000 in Inter District Sewer Use-
SAWPA & SBSD. These and other variances that factor into this net increase in
revenues are discussed in more detail below. Overall, staff expects the total
revenues to approximate or be slightly below budget at the end of the fiscal year.
Significant operating results as of September 30, 2022, include the following:
• Salaries, Wages and Benefits — Personnel costs of $26.5 million are on target at
23.5 percent of the budget through the first quarter of FY 2022-23. The budget
is based on a 5 percent vacancy factor, and staffing is 50 full-time equivalents
(FTEs), or 7.7 percent below the total 647 FTEs approved in the FY 2022-23 budget.
Salary and benefit costs are $1.6 million, or 6.4 percent higher than the $24.9 million
incurred in the same period last year, mainly due to an increase of $2.7 million in
Section 1 - Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
Salaries and Wages resulting from cost -of -living adjustments included in the current
Memorandums of Understanding for all employee bargaining units, and is partially
offset by decreases of $753,000 in Group Insurances and $395,000 in Retirement.
Net operating personnel costs are expected to approximate budget throughout
the remainder of the year.
• Administrative Expenses — Administrative Expenses totaled $559,000, or 24.8
percent of the $2.3 million budget through September 30. These costs are
$132,000, or 19.1 percent lower at September 30 in comparison with the prior year,
mainly due to a decrease of $67,000 in Small Computer Items, $31,000 in Minor
Furniture & Fixtures, and $27,000 in Memberships as a result of timing of payments.
It is anticipated that administrative costs will approximate budget at year-end.
• Printing and Publication Expenses — Printing and Publication Expenses totaled
$65,000 or 8.0 percent of the $809,000 budget through September 30. These
costs are $5,000, or 8.1 percent higher at September 30 in comparison with the prior
year, primarily due to an increase in costs incurred for in-house printing and
reproductions. Significant costs are expected in the third quarter when Prop 218
notifications for regional sewer service fees will be mailed. Printing and publication
costs are expected to approximate budget at year-end.
• Training and Meetings — Training and meetings of $39,000 is below target at 3.4
percent of the $1.2 million budget through September 30. This account is lower
than the proportionate budget due to the timing and need for training throughout the
year and the reduction of in -person training and meetings in response to the COVID-
19 pandemic. These costs have decreased over the same period last year by
$66,000, or 62.8 percent. Total training and meeting costs are anticipated to be
below budget at year-end.
• Operating Materials and Supplies — Operating materials and supplies of $6.5
million is on target at 26.5 percent of the $24.5 million budget through
September 30. Operating Materials and Supplies is higher than the prior year by
$1.8 million, or 37.6 percent, mostly due to increases of $1.2 million in Chemical
Coagulants resulting from increased usage and unit costs of cationic polymer, ferric
chloride, and anionic polymer, $349,000 in Odor and Corrosion Control, $162,000 in
Safety Equipment/Tools, and $102,000 in Tools. Based on current processes,
operating materials and supplies are anticipated to approximate or be slightly
above budget at year-end.
• Contractual Services — Contractual services is on target at $4.9 million, or 24.3
percent of the $20.1 million budget through September 30. Solids Removal
costs, budgeted at $13.7 million, comprise the majority of this expense category at
$3.4 million, or 25.1 percent of its budget at September 30. Contractual Services is
higher by $776,000, or 18.8 percent over the same period last year, mainly due to
the increase of $512,000 in Solids Removal, $156,000 in Other Contractual
Services, and $75,000 in Oxygen. County Service Fees totaled only $9,000, or 1.8
percent of the $519,000 budget through the first quarter, as the preponderance of
Section 1 - Page 2
Table of Contents
Consolidated Financial Reports
these fees are billed by the County in the fourth quarter. Total contractual services
costs are anticipated to approximate or be above budget at year-end.
• Professional Services — Professional services costs totaled $1.2 million, or 15.4
percent of the $7.9 million budget through September 30. Professional services
costs, such as Legal, Audit & Accounting, Engineering, Environmental Scientific
Consulting, Energy Consulting, Industrial Hygiene Services, Labor Negotiation
Services, and Other Professional Services, are proportionately low through
September 30 due to a variety of factors such as timing of services and re-
evaluation of need for services. These costs are $307,000, or 33.9 percent higher at
September 30 in comparison with the prior year, mainly due to an increase of
$211,000 in Software Program Consulting and $191,000 in Other Professional
Services. It is anticipated that the costs for this category will be below budget
at year-end.
• Research and Monitoring — Research and monitoring costs totaled $597,000, or
35.2 percent of the $1.7 million budget through September 30. These costs are
$21,000, or 3.6 percent higher at September 30 in comparison with the prior year,
primarily due to an increase of $35,000 in Research costs reflecting the higher
annual contribution to Southern California Coastal Water Research Project and
research of SARS-CoV-2 presence in wastewater, offset by a decrease of $12,000
in Air Quality Monitoring costs for emissions testing. Total research and
monitoring costs are anticipated to approximate budget at year-end.
• Repairs and Maintenance — Repairs and maintenance costs totaled $7.3 million,
or 22.6 percent of the $32.1 million budget through September 30. These costs
are $336,000, or 4.4 percent lower at September 30 in comparison with the prior
year, primarily due to a decrease in repair and maintenance services for dewatering
centrifuges and electrical breakers and relays. It is anticipated that the costs for
this category will approximate budget at year-end.
• Utilities — Utilities costs totaled $4.0 million, or 31.3 percent of the $12.8 million
budget through September 30. These costs are $841,000, or 26.6 percent higher
at September 30 in comparison with the prior year, primarily due to an increase of
$969,000 in Power due to greater electricity consumption and higher unit costs,
partially offset by a decrease of $61,000 in Water and $51,000 in Natural Gas. It is
anticipated that the costs will approximate or be above budget at year-end.
• Other Operating Supplies — Other operating supplies costs totaled $934,000, or
21.1 percent of the $4.4 million budget through September 30. Property and
General Liability Insurance, budgeted at $2.4 million, comprise the majority of this
expense category at $606,000. Overall, Other Operating Supplies is $42,000, or 4.7
percent higher at September 30 in comparison with the prior year, primarily due to
an increase of $71,000 in Property and General Liability Insurance, $16,000 in
Freight, and $11,000 in Regulatory Operating Fees, which is partially offset by a
decrease of $68,000 in Miscellaneous Operating Expenses. It is anticipated that
other operating supplies costs will approximate budget at year-end.
Section 1 - Page 3
Table of Contents
FY 2022-23 First Quarter Financial Report
• Revenues — Service Fees and Property Taxes — Through September 30, revenues
from Service Fees are at negative $18,000, or 0.0 percent of the $308.5 million
budget and Property Taxes are at $1.6 million, or 1.4 percent of the $109.8
million budget. These items comprise the majority of OC San's revenues and are
mostly collected by the County through the property tax roll and distributed to OC
San throughout the year based on a set distribution schedule that begins in
November of each year. The decrease of $106,000, or 120.5 percent in service fee
revenue over the prior year is primarily due to the timing of receipts and user fee
refunds. The property tax revenue decrease of $1.0 million, or 39.8 percent over the
prior year is a result of the timing of miscellaneous property tax receipts. These
revenues are expected to approximate budget at year-end.
• Revenues — Permit Fees — Permit Fees are at $4.6 million, or 37.0 percent of the
$12.5 million budget. The revenues through the first quarter are higher than the
same period last year by $1.1 million, or 30.7 percent, due to the fluctuation in the
number of permittees from year to year as businesses establish or cease their
operations and an increase in operation and maintenance charges based on flows
received from these customers. Permit Fees revenues are expected to
approximate or be above budget at year-end.
• Revenues — Inter District Sewer Use — SAWPA and SBSD — Inter District Sewer
Use-SAWPA and SBSD are at $747,000, or 24.8 percent of the $3.0 million
budget. This revenue is derived from charges to the Santa Ana Watershed
Protection Agency (SAWPA) and Sunset Beach Sanitary District (SBSD) for
treatment of flows. The revenues through the first quarter are higher than the same
period last year by $57,000, or 8.3 percent, due to an increase in operation and
maintenance charges based on flows received from these agencies. These
revenues are expected to approximate budget at year-end.
• Revenues — Intra District Sewer Use — IRWD — Intra District Sewer Use-IRWD are
at $2.0 million, or 39.9 percent of the $5.1 million budget. This revenue is
derived from charges to the Irvine Ranch Water District (IRWD) for treatment of
flows. The revenues through the first quarter are higher than the same period last
year by $1.0 million, or 106.4 percent, primarily due to a decrease of $738,000 in
interest income/(loss) allocated to IRWD and an increase of $315,000 in operating
and maintenance charges to IRWD. These revenues are expected to be above
budget at year-end.
• Revenues — Capital Assessments — IRWD — Capital Assessments-IRWD are at
$616,000, or 6.5 percent of the $9.4 million budget. The revenues through the
first quarter are higher than the same period last year by $97,000, or 18.7 percent,
mainly due to an increase in joint capital costs allocable to IRWD. It is estimated
that IRWD capital assessments revenues will be below budget at year-end.
• Revenues — Capital Facilities Capacity Charges (CFCC) — CFCC are at $2.9
million, or 16.4 percent of the $17.9 million budget. The revenues through the
first quarter are lower than the same period last year by $511,000, or 14.8 percent,
Section 1 - Page 4
Table of Contents
Consolidated Financial Reports
due to a decrease in capacity charges collected from local agencies, partially offset
by an increase in supplemental charges assessed to industrial dischargers. These
revenues are expected to approximate or be below budget at year-end.
• Revenues — Interest Earnings (Loss) — Interest Earnings are at negative $12.5
million, or -86.3 percent of the $14.5 million budget. The revenues through the
first quarter are lower than the same period last year by $13.1 million due to a
negative total rate of return on securities held in the long-term investment portfolio,
which is largely comprised of unrealized losses. It is estimated that interest
earnings will be below budget at year-end.
• Revenues — CIP Reimbursements — CIP Reimbursements are at $17,000, or 0.1
percent of the $11.8 million budget. This revenue is $17,000, or 100.0 percent
higher than the same period last year and is proportionately low to the budget
through the first quarter due to timing of reimbursements for construction projects,
such as from Orange County Water District for J-117B Outfall Low Flow Pump
Station and for P2-122 Headworks Modifications at Plant No. 2 for GWRS Final
Expansion. These revenues are expected to be below budget at year-end.
• Revenues — Wastehauler — Wastehauler revenues are at $195,000, or 26.0
percent of the $750,000 budget. This revenue is derived from fees charged to
wastehaulers, allowing them to dump waste into OC San's system. The revenues
through the first quarter are higher than the same period last year by $22,000, or
12.7 percent, due to an increase in waste dumping. These revenues are expected
to approximate budget at year-end.
• Revenues — CNG Sales — CNG Sales revenues are at $79,000, or 19.8 percent of
the $400,000 budget. This revenue is derived from public sales at OC San's
Compressed Natural Gas (CNG) fueling station. The revenues through the first
quarter are higher than the same period last year by $17,000, or 27.2 percent, due
to an increase in compressed natural gas prices. These revenues are expected to
approximate budget at year-end.
• Revenues — Rents & Leases — Rents & Leases revenues are at $121,000, or 20.1
percent of the $600,000 budget. The revenues through the first quarter are lower
than the same period last year by $5,000, or 4.4 percent. These revenues are
expected to approximate budget at year-end.
• Revenues — Other — Other revenues are at $196,000, or 1.5 percent of the $13.2
million budget. These revenues are $4,000, or 2.1 percent higher than the same
period last year, primarily due to an increase of $12,500 in service charge penalties
and interest and $12,000 in miscellaneous other revenue, partially offset by a
decrease of $21,000 in deferred compensation administrative activities. These
revenues are expected to be below budget at year-end.
Section 1 - Page 5
Table of Contents
FY 2022-23 First Quarter Financial Report
$3,200
$3,000
$2,800
$2,600
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
Comparison of First Quarter Cost per
Million Gallon Results with Budget
Last Five Years
rn
�
rn
N
EH
N
K3
00
O
V
N
63
N
V
Ln
M
M
N
HT
_
n
It(D
N M
N
G3
N
661
V
N
EA
N
EA
N
W
O
N
EFT
18-19 19-20 20-21 21-22 22-23
O Fiscal Year Budget O First Quarter
As demonstrated in the preceding graph for the current and each of the last four fiscal
years, the cost per million gallons at the end of the first quarter has been between 2.2
and 13.7 percent lower than the annual budget. The FY 2022-23 first quarter cost per
million gallons of $2,891 is 3.0 percent lower when compared with this year's budget.
The increase in cost per million gallons of $349 from the previous year is primarily due
to an increase in operating expenses, which are 11.8 percent higher than the same
period last year, and a decrease in flows, which are 1.7 percent lower than the same
period last year. Staff believes that overall operating costs will be at or slightly below
budget at year-end.
The total cost per million gallons at September 30 is $2,891 based on flows of 180
million gallons per day. This is $88 per million gallons, or 3.0 percent lower than the
budgeted cost per million gallons of $2,979. The lower cost per million gallons is due to
net expenses being 4.6 percent lower than the proportionate budget through September
30, partially offset by flows of 180 million gallons per day being 2.5 percent less than the
budgeted flow of 185 million gallons per day, which has an inverse relationship to cost
per unit of collection, treatment, and disposal.
More detailed information on operating revenues, costs, and related information is
provided within Section 2.
Section 1 - Page 6
Table of Contents
Consolidated Financial Reports
Following are data tables showing the last five years of Single Family Residential User
Fees (SFR) and the cost per million gallons (MG) to collect, treat, and dispose of
wastewater for the Orange County Sanitation District and similar agencies. The
agencies used in the tables were determined to be those that most closely resembled
OC San in terms of services provided and treatment levels. The summaries
demonstrate that OC San's SFR and cost per MG are each one of the lowest in their
respective groups.
Benchmark Study
Five -Year Single Family Residential Rate
Agency
San Francisco $
Vallejo Sanitation/Flood Control District $
Central Contra Costa Sanitary District $
City of San Diego $
City of Los Angeles $
Union Sanitary District $
Dublin San Ramon Services District $
East Bay MUD $
City of Hayward $
Sacramento County $
Irvine Ranch Water District $
Orange County Sanitation District $
Oro Loma Sanitary District $
City of Fresno $
Los Angeles County $
Rates as of July
2018
2019
2020
2021
2022
SFR
SFR
SFR
SFR
SFR
Notes
988
1,076
1,169
1,270
1,270
585
656
715
747
769
567
598
598
660
690
573
573
573
573
687
(1)
561
597
636
636
636
(2)
407
421
421
524
530
(3)
423
447
469
486
496
410
423
439
457
475
394
412
430
446
463
444
444
444
444
444
309
313
313
313
357
(4)
335
339
339
343
347
256
275
296
318
342
309
309
309
309
309
(5)
191
196
213
226
226
(6)
Notes:
(1) - Data represents the base sewer fee plus the average usage of 9 hundred cubic feet per month.
(2) - Data is for the typical SFR customer rate.
(3) - Deferred rate increase for July 2020 incorporated into July 2021 rate.
(4) - Data represents the usage of 10 hundred cubic feet per unit.
(5) - Data represents the minimum SFR rate not including flow.
(6) - Data represents the Average Service Charge Rates for the prior fiscal year.
Section 1 - Page 7
Table of Contents
FY 2022-23 First Quarter Financial Report
Benchmark Study
Five -Year Cost per MG
Agency
Svc. Trt.
FY 16-17
Cost/MG
FY 17-18
Cost/MG
FY 18-19
Cost/MG
FY 19-20
Cost/MG
FY 20-21
Cost/MG
Notes
San Francisco
B
2
$ 4,916
5,295
5,995
7,573
9,456
(1)
Vallejo Sanitation/Flood Control District
B
2
$ 4,745
5,393
6,137
8,682
9,108
(2)
Central Contra Costa Sanitary District
B
3
$ 6,081
5,588
3,980
5,284
6,513
(3)
Union Sanitary District
B
2
$ 4,039
4,757
4,838
5,655
5,569
City of San Diego
B
3
$ 3,834
4,147
4,180
3,977
4,219
East Bay MUD
T
2
$ 2,353
3,137
2,710
3,122
4,052
(4)
Dublin San Ramon Services District
B
3
$ 2,961
3,422
3,692
3,441
3,570
(5)
Sacramento County
T
3
$ 2,752
2,831
2,812
3,407
3,470
City of Los Angeles
B
3
$ 2,487
2,329
3,046
3,021
2,763
(6)
Orange County Sanitation District
B
2
$ 2,055
2,069
2,275
2,422
2,428
Los Angeles County
B
3
$ 1,965
2,077
2,264
2,343
2,338
(7)
City of Fresno
B
3
$ 1,796
1,813
1,945
1,993
2,100
Leaend for Service Provided and Treatment Level:
B - Agency operates both collection and treatment facilities
T - Agency provides treatment services but not collection
2 - Secondary treatment
3 - Advanced secondary or secondary with some tertiary treatment
Notes:
(1) - FY19-20 operating expense increased $2.9 million and average daily flow decreased 19.3MG per day.
Combined stormwater/sewer system.
(2) - In FY19-20, Agency updated FY18-19 Annual Comprehensive Financial Report treatment cost.
(3) - FY18-19 operating expense decreased $36.4 million; $30.4 million due to an adjustment to the
Agency's Other Post Employment Benefit Plan (OPEB) - Transition to CalPers Health Insurance.
(4) - FY18-19 operating expense decreased $1.1 million.
(5) - FY20-21 costs include both treatment and collection costs (Regional Fund 300 + Local Fund 200).
(6) - FY17-18 influent flow has not been reduced by the amount of sludge discharged to the sewers from DCTW RP
and LAGW RP.
(7) - In FY19-20, Agency updated data for FY16-17 and after to include administrative costs.
Section 1 - Page 8
Table of Contents
Capital Outlay Review:
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
Consolidated Financial Reports
09/30/22 Actual Projected 2022-23 2022-23 Capital Outlay
Capital Outlay Capital Outlay Cashflow Budget
$27,661,618 $268,761,800 $268,167,361
As depicted by the preceding chart, Capital Outlays totaled $27.7 million, or 10.3
percent of the capital outlay cash flow budget for FY 2022-23 as of September 30,
2022. Costs are lower than the proportionate budget through the first quarter as some
projects are still in the design phase or have experienced various delays or deferrals.
Examples as of September 30 are Rehabilitation of Western Regional Sewers, which
has a budget of $17.1 million but actual costs of $436,000, Primary Treatment
Rehabilitation at Plant No. 2, which has a budget of $30.5 million but actual costs of
$4.4 million, and Headquarters Complex, which has a budget of $61.2 million but actual
costs of $4.2 million. Overall, the capital outlay costs of the capital improvement
program are expected to approximate $268.8 million, or 100.2 percent of the
capital outlay cash flow budget at year-end.
More detailed information on the capital improvement program is provided within
Section 3.
Capital Assets Schedule and Debt Service Budget Review: Section 4 is the Capital
Assets Schedule and Debt Service Section. This section shows the cost value of OC
San's capital facilities at September 30, 2022, as well as the debt service costs resulting
from the need to provide funding for the construction of capital facilities.
Principal payments on debt issues are due in February, during the third quarter of each
fiscal year. As of September 30, 2022, no principal payments have been made. Interest
costs are expensed ratably throughout the fiscal year and are expected to approximate
or exceed budget at year-end.
Section 1 - Page 9
Table of Contents
FY 2022-23 First Quarter Financial Report
Self -Insurance Budget Review: Section 5 is the Self -Insurance Section. Through
September 30, the Self -Insurance Fund revenues totaled $763,000, or 25.1 percent of
the budget, while expenses are at $1.0 million, or 27.5 percent of the budget.
Separate fund accounting is used for recording the revenue and expenses incurred in
managing these liability claims. The revenues to these funds represent charges to
operating divisions. Expenses to these funds include actual claims paid, claims
administration, and excess loss policies.
Section 1 - Page 10
Table of Contents
Operating Budget Review
Cost per Million Gallons by Department
Budget and Actual
September 30, 2022
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
U U
>
NN
C
i
N
>
- N
C N
U U
O) 0LS N
C U
N C
C
N
U
E
O N
U
N
C
N O
C N +U+
O (B
W m
2 a)C
O
E(n
aU)
C
W m
Q
:
02
❑ Budget ❑ Actual
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Collection, Treatment, & Disposal Expenses by Major Category
Budget and Actual (in thousands)
September 30, 2022
N N
a)w'
N
N
C
O
N N
N N
N N
CD
C
O
U
N N
d (ry U
>� N
d
N
d
-
C
U U
C
_>
06 m
'U
Z
N M .�
Q
N N
CO (n
C
O
d
c
O KS
O ui
>� a)
LL
N
d
0'j O) 3
(6 (6
CO
.Q
(6 >'
>
od
.0 �
7 C
od
c6 a'y
C
U)
U
od
i
fl'
OE n
W
N
c
~
O
6
W
MO
a
CL
d
CL
Q
Of
❑ Budget
O Actual
Section 2 - Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
Divisional Contributions to Cost Per Million Gallons
For the Three Months Ended September 30, 2022
Flow in Million Gallons
Flow in Million Gallons per Day
Executive Management Department
General Management Administration
Board Services
Public Affairs
Subtotal
Human Resources Department
Human Resources
Risk Management / Safety / Security
Subtotal
Administrative Services Department
Administrative Services
Consolidated Services
Financial Management
Contracts, Purchasing, & Materials Mgmt.
Information Technology
Subtotal
Environmental Services Department
Environmental Services Administration
Resource Protection
Laboratory, Monitoring and Compliance
Subtotal
Engineering Department
Engineering Administration
Planning
Project Management Office
Design
Construction Management
Subtotal
Operations & Maintenance Department
Operations & Maintenance Administration
Collections Facilities O & M
Fleet Services
Plant No. 1 Operations
Plant No. 2 Operations
Plant No. 1 Maintenance
Plant No. 2 Maintenance
Subtotal
Total Operating Expenses
Cost Allocation
Net Operating Requirements
09/30/20
09/30/21
Actual
Actual
17,208.88
16,881.01
187.05
183.49
$ 27.48
12.13
15.66
55.27
44.53
50.30
94.83
7.45
90.21
58.14
68.44
239.80
464.04
35.19
81.70
167.64
284.53
16.89
46.52
61.22
86.01
93.03
303.67
1.87
182.77
25.00
479.38
252.10
334.45
292.54
1,568.11
2,770.45
(291.38)
$ 2,479.07
2022-23
Annual
09/30/22
Budget
Actual
67,525.00
16,593.98
185.00
180.37
$ 23.95
$ 24.24
$ 30.23
13.24
18.45
13.93
15.45
25.54
19.04
52.64
68.23
63.20
56.78
69.13
60.39
61.39
70.78
63.60
118.17
139.91
123.99
8.46
99.65
57.79
66.20
258.93
491.03
77.06
81.17
134.18
292.41
19.03
52.29
61.42
95.39
100.80
328.93
2.11
207.21
33.22
472.08
258.82
365.77
208.51
1,547.72
2,830.90
(289.16)
$ 2,541.74
9.12
123.59
66.36
77.33
221.78
498.18
75.55
106.84
153.77
336.16
20.48
62.68
66.63
106.65
128.35
384.79
9.96
279.87
36.49
562.81
281.97
395.67
292.25
1,859.02
3,286.29
(307.46)
$ 2,979.00
8.77
115.63
65.52
80.58
298.14
568.64
80.66
83.32
141.96
305.94
13.07
60.05
63.17
88.29
108.64
333.22
6.92
253.21
38.44
599.79
279.08
380.49
216.73
i�jl��:1•
3,169.65
(278.59)
$ 2,891.06
Section 2 - Page 2
Table of Contents
Operating Budget Review
Comparison of Expenses by Department
For the Three Months Ended September 30, 2022
2022-23
09/30/20
09/30/21
Year to Date
Budget %
Department and Division
Actual
Actual
Budget
09/30/22
Realized
Executive Management Department
General Management Administration
$ 472,840
$ 404,349
$ 1,637,010
$ 501,556
30.64%
Board Services
208,682
223,424
1,245,834
231,087
18.55%
Public Affairs
269,532
260,880
1,724,830
315,870
18.31%
Subtotal
951,054
888,653
4,607,674
1,048,513
22.76%
Human Resources Department
Human Resources
766,293
958,474
4,668,135
1,002,179
21.47%
Risk Management / Safety / Security
865,640
1,036,367
4,779,373
1,055,358
22.08%
Subtotal
1,631,933
1,994,841
9,447,508
2,057,537
21.78%
Administrative Services Department
Administrative Services
128,223
142,803
615,905
145,607
23.64%
Consolidated Services
1,552,414
1,682,124
8,345,184
1,918,778
22.99%
Financial Management
1,000,514
975,550
4,480,931
1,087,246
24.26%
Contracts, Purchasing, & Materials Mgmt.
1,177,730
1,117,496
5,221,431
1,337,121
25.61%
Information Technology
4,126,727
4,371,010
14,975,496
4,947,265
33.04%
Subtotal
7,985,608
8,288,983
33,638,947
9,436,017
28.05%
Environmental Services Department
Environmental Services Administration
605,630
1,300,804
5,101,551
1,338,538
26.24%
Resource Protection
1,406,037
1,370,315
7,214,640
1,382,612
19.16%
Laboratory, Monitoring and Compliance
2,884,969
2,265,054
10,383,475
2,355,693
22.69%
Subtotal
4,896,636
4,936,173
22,699,666
5,076,843
22.37%
Engineering Department
Engineering Administration
290,687
321,307
1,382,867
216,940
15.69%
Planning
800,525
882,657
4,232,470
996,510
23.54%
Project Management Office
1,053,555
1,036,763
4,499,180
1,048,306
23.30%
Design
1,480,157
1,610,199
7,201,590
1,465,148
20.34%
Construction Management
1,600,982
1,701,689
8,667,018
1,802,848
20.80%
Subtotal
5,225,906
5,552,615
25,983,125
5,529,752
21.28%
Operations & Maintenance Department
Operations & Maintenance Administration
32,176
35,582
672,570
114,772
17.06%
Collections Facilities O & M
3,145,299
3,497,911
18,898,442
4,201,833
22.23%
Fleet Services
430,164
560,789
2,463,959
637,916
25.89%
Plant No. 1 Operations
8,249,611
7,969,217
38,003,504
9,952,926
26.19%
Plant No. 2 Operations
4,338,364
4,369,141
19,040,302
4,631,041
24.32%
Plant No. 1 Maintenance
5,755,499
6,174,589
26,717,339
6,313,806
23.63%
Plant No. 2 Maintenance
5,034,229
3,519,798
19,733,896
3,596,423
18.22%
Subtotal
26,985,342
26,127,027
125,530,012
29,448,717
23.46%
Total Operating Expenses
47,676,479
47,788,292
221,906,932
52,597,379
23.70%
Cost Allocation
(5,014,470)
(4,881,091)
(20,762,230)
(4,623,173)
22.27%
Net Operating Requirements
$ 42,662,009
$ 42,907,201
$ 201,144,702
$ 47,974,206
23.85%
Section 2 - Page 3
Table of Contents
FY 2022-23 First Quarter Financial Report
Summary of Collection, Treatment, & Disposal Expenses by Major Category
For the Three Months
Ended September 30, 2022
Expense
Expense
Increase
Increase
Percent
Budget
Through
Through
(Decrease)
(Decrease)
Budget
Remaining
Description
2022-23
09/30/22
09/30/21
$
%
Realized
Budget
Salary & Wages
$ 88,436,482
20,939,929
18,215,401
$ 2,724,528
14.96%
23.68%
$ 67,496,553
Employee Benefits
24,335,100
5,595,642
6,722,842
(1,127,200)
-16.77%
22.99%
18,739,458
Administrative Expenses
2,253,179
559,114
690,850
(131,736)
-19.07%
24.81%
1,694,065
Printing & Publication
809,332
64,676
59,812
4,864
8.13%
7.99%
744,656
Training & Meetings
1,161,096
39,367
105,855
(66,488)
-62.81%
3.39%
1,121,729
Operating Materials & Supplies
24,478,657
6,497,295
4,723,103
1,774,192
37.56%
26.54%
17,981,362
Contractual Services
20,142,002
4,898,184
4,122,065
776,119
18.83%
24.32%
15,243,818
Professional Services
7,865,171
1,213,536
906,554
306,982
33.86%
15.43%
6,651,635
Research & Monitoring
1,695,550
597,122
576,520
20,602
3.57%
35.22%
1,098,428
Repairs & Maintenance
32,135,374
7,253,046
7,589,125
(336,079)
-4.43%
22.57%
24,882,328
Utilities
12,803,268
4,006,879
3,166,046
840,833
26.56%
31.30%
8,796,389
Other Materials, Supplies,
and Services
5,791,721
932,589
910,119
22,470
2.47%
16.10%
4,859,132
Net Cost Allocation
(20,762,230)
(4,623,173)
(4,881,091)
257,918
-5.28%
22.27%
(16,139,057)
Net Operating Requirements
201,144,702
47,974,206
42,907,201
5,067,005
11.81%
23.85%
153,170,496
Gallonage Flow (MG)
67,525.00
16,593.98
16,881.01
(287.03)
-1.70%
Gallonage Flow (MGD)
185.00
180.37
183.49
(3.12)
-1.70%
Gallonage Flow ($'s /MG)
$2,979.00
$2,891.06
$2,541.74
$349.32
13.74%
Section 2 - Page 4
Table of Contents
Operating Budget Review
Summary of Revenues
For the Three Months Ended September 30, 2022
Description
Budget
2022-23
Revenue
Through
09/30/22
Percent
Budget
Realized
Remaining
Budget
Revenue
Through
09/30/21
Increase
(Decrease)
$
Increase
(Decrease)
%
Service Fees
$ 308,534,310
$ (18,076)
-0.01%
$ 308,552,386
$ 88,169
$ (106,245)
-120.50%
Permit Fees
12,500,918
4,624,814
37.00%
7,876,104
3,538,798
1,086,016
30.69%
Inter District Sewer Use-SAWPA & SBSD
3,018,000
747,136
24.76%
2,270,864
689,950
57,186
8.29%
Intra District Sewer Use-IRWD
5,063,872
2,019,895
39.89%
3,043,977
978,535
1,041,360
106.42%
Capital Assessments-IRWD
9,439,000
616,238
6.53%
8,822,762
519,265
96,973
18.68%
Capital Facilities Capacity Charges
17,923,749
2,933,749
16.37%
14,990,000
3,444,252
(510,503)
-14.82%
Debt Proceeds
-
-
N/A
-
164,350,308
(164,350,308)
-100.00%
Property Taxes
109,776,020
1,557,310
1.42%
108,218,710
2,588,124
(1,030,814)
-39.83%
Interest Earnings (Loss)
14,504,000
(12,519,930)
-86.32%
27,023,930
584,166
(13,104,096)
-2243.21%
CIP Reimbursements
11,782,925
16,789
0.14%
11,766,136
-
16,789
100.00%
Wastehauler
750,000
195,307
26.04%
554,693
173,229
22,078
12.74%
Grant Revenue
464,000
-
0.00%
464,000
-
-
0.00%
CNG Sales
400,000
79,032
19.76%
320,968
62,139
16,893
27.19%
Rents & Leases
600,000
120,509
20.08%
479,491
126,002
(5,493)
-4.36%
Other Revenues
13,216,010
196,386
1.49%
13,019,624
192,388
3,998
2.08%
Power Sales
25,000
18,956
75.82%
6,044
95,659
(76,703)
-80.18%
Other Sales
50,000
31,285
62.57%
18,715
16,790
14,495
86.33%
Total Revenues $ 508,047,804 $ 619,400 0.12% $ 507,428,404 $ 177,447,774 $(176,828,374)-99.65%
Section 2 - Page 5
Table of Contents
FY 2022-23 First Quarter Financial
Report
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For
the Three Months Ended
September 30,
2022
Expense
Percent
Expense
Increase
Increase
Budget
Through
Budget
Remaining
Through (Decrease)
(Decrease)
Description
2022-23
09/30/22
Expensed
Budget
09/30/21
$
%
Salaries, Wages & Benefits
Salaries & Wages
$ 88,436,482
$ 20,939,929
23.68%
$ 67,496,553
$ 18,215,401 $
2,724,528
14.96%
Employee Benefits
Retirement
12,120,500
2,697,594
22.26%
9,422,906
3,093,021
(395,427)
-12.78%
Group Insurances
10,742,800
2,413,974
22.47%
8,328,826
3,166,984
(753,010)
-23.78%
Tuition & Certification Reimb
87,000
27,970
32.15%
59,030
36,258
(8,288)
-22.86%
Edu. degrees, Cert. & Lic.
621,800
147,806
23.77%
473,994
171,241
(23,435)
-13.69%
Uniform Rental
102,200
24,157
23.64%
78,043
21,468
2,689
12.53%
Workers' Compensation
518,500
129,624
25.00%
388,876
195,000
(65,376)
-33.53%
Unemployment Insurance
21,300
419
1.97%
20,881
5,329
(4,910)
-92.14%
EMT Supplemental Benefits
121,000
154,098
127.35%
(33,098)
33,541
120,557
359.43%
Total Benefits
24,335,100
5,595,642
22.99%
18,739,458
6,722,842
(1,127,200)
-16.77%
Salaries, Wages & Benefits
112,771,582
26,535,571
23.53%
86,236,011
24,938,243
1,597,328
6.41%
Matl, Supplies, & Services
Administrative Expenses
Memberships
689,610
269,902
39.14%
419,708
297,157
(27,255)
-9.17%
Office Exp - Supplies
60,343
7,105
11.77%
53,238
10,209
(3,104)
-30.40%
Postage
35,720
6,835
19.13%
28,885
6,079
756
12.44%
Books & Publications
41,698
3,542
8.49%
38,156
7,116
(3,574)
-50.22%
Forms
608
-
0.00%
608
-
N/A
Small Computer Items
1,005,500
199,778
19.87%
805,722
266,865
(67,087)
-25.14%
Minor Furniture & Fixtures
419,700
71,952
17.14%
347,748
103,424
(31,472)
-30.43%
Subtotal
2,253,179
559,114
24.81%
1,694,065
690,850
(131,736)
-19.07%
Printing & Publication
Repro -In -House
185,432
36,915
19.91%
148,517
33,067
3,848
11.64%
Printing -Outside
404,850
3,141
0.78%
401,709
1,253
1,888
150.68%
Notices & Ads
219,000
24,620
11.24%
194,380
25,492
(872)
-3.42%
Photo Processing
50
-
0.00%
50
-
-
N/A
Subtotal
809,332
64,676
7.99%
744,656
59,812
4,864
8.13%
Training & Meetings
Meetings
127,446
5,237
4.11%
122,209
2,521
2,716
107.74%
Training
1,033,650
34,130
3.30%
999,520
103,334
(69,204)
-66.97%
Subtotal
1,161,096
39,367
3.39%
1,121,729
105,855
(66,488)
-62.81%
Operating Mat'Is & Supplies
Chemical Coagulants
12,103,086
3,365,105
27.80%
8,737,981
2,180,689
1,184,416
54.31%
Odor& Corrosion Control
7,893,286
2,013,285
25.51%
5,880,001
1,664,150
349,135
20.98%
Disinfection
198,500
74,668
37.62%
123,832
15,505
59,163
381.57%
Chemicals - Misc & Cogen
435,000
84,810
19.50%
350,190
113,537
(28,727)
-25.30%
Gasoline, Diesel & Oil
805,385
192,037
23.84%
613,348
174,189
17,848
10.25%
Tools
865,500
275,004
31.77%
590,496
172,561
102,443
59.37%
Safety equipment/tools
1,101,932
305,522
27.73%
796,410
143,035
162,487
113.60%
Solv, Paints & Jan. Supplies
134,986
31,563
23.38%
103,423
41,001
(9,438)
-23.02%
Lab Chemicals & Supplies
680,319
122,517
18.01%
557,802
148,769
(26,252)
-17.65%
Misc. Operating Supplies
184,163
32,784
17.80%
151,379
54,543
(21,759)
-39.89%
Property Tax Fees
76,500
-
0.00%
76,500
15,124
(15,124)
-100.00%
Subtotal
24,478,657
6,497,295
26.54%
17,981,362
4,723,103
1,774,192
37.56%
Contractual Services
Solids Removal
13,740,000
3,442,782
25.06%
10,297,218
2,930,718
512,064
17.47%
Other Waste Disposal
1,217,200
191,752
15.75%
1,025,448
195,545
(3,793)
-1.94%
Groundskeeping
200,000
50,742
25.37%
149,258
42,842
7,900
18.44%
Janitorial
659,488
262,980
39.88%
396,508
205,762
57,218
27.81%
Outside Lab Services
357,000
38,421
10.76%
318,579
62,775
(24,354)
-38.80%
Oxygen
476,000
191,632
40.26%
284,368
116,806
74,826
64.06%
County Service Fee
518,782
9,174
1.77%
509,608
6,820
2,354
34.52%
Temporary Services
574,400
67,211
11.70%
507,189
88,528
(21,317)
-24.08%
Security Services
1,716,007
428,463
24.97%
1,287,544
413,613
14,850
3.59%
Other
683,125
215,027
31.48%
468,098
58,656
156,371
266.59%
Subtotal
20,142,002
4,898,184
24.32%
15,243,818
4,122,065
776,119
18.83%
(Continued)
Section 2 - Page 6
Table of Contents
Operating Budget Review
Summary of Collection, Treatment, & Disposal Expenses by Line Item
For the Three Months Ended September 30, 2022
Expense Percent Expense Increase Increase
Budget Through Budget Remaining Through (Decrease) (Decrease)
Description 2022-23 09/30/22 Expensed Budget 09/30/21 $ %
Continued:
Professional Services
Legal
Audit & Accounting
Engineering
Enviro Scientific Consulting
Software Prgm Consulting
Energy Consulting
Advocacy Efforts
Industrial Hygiene Services
Labor Negotiation Services
Other
Subtotal
Research & Monitoring
Environmental Monitoring
Air Quality Monitoring
Research
Subtotal
Repairs & Maintenance
Materials & Services
Svc. Mtc. Agreements
Subtotal
Utilities
Telephone
Diesel For Generators
Natural Gas
Power
Water
Subtotal
Other Operating Supplies
Outside Equip Rental
Insurance Premiums
Prop & Gen Liab Insurance
Freight
Misc. Operating Expense
Regulatory Operating Fees
Subtotal
General Mgr Contingency
& Reappropriations
Other Non-Oper Expense
Total Materials,
Supplies & Services
Total Expenditures
1,472,000
237,982
16.17%
1,234,018
282,360
(44,378)
-15.72%
230,000
33,000
14.35%
197,000
67,925
(34,925)
-51.42%
1,755,000
143,466
8.17%
1,611,534
173,922
(30,456)
-17.51%
879,221
4,126
0.47%
875,095
5,029
(903)
-17.96%
710,500
337,236
47.46%
373,264
126,466
210,770
166.66%
50,000
6,750
13.50%
43,250
-
6,750
N/A
181,000
58,636
32.40%
122,364
36,034
22,602
62.72%
100,000
-
0.00%
100,000
12,539
(12,539)
-100.00%
90,000
-
0.00%
90,000
609
(609)
-100.00%
2,397,450
392,340
16.36%
2,005,110
201,670
190,670
94.55%
7,865,171
1,213,536
15.43%
6,651,635
906,554
306,982
33.86%
900,000
42,339
4.70%
857,661
44,425
(2,086)
-4.70%
220,000
-
0.00%
220,000
11,960
(11,960)
-100.00%
575,550
554,783
96.39%
20,767
520,135
34,648
6.66%
1,695,550
597,122
35.22%
1,098,428
576,520
20,602
3.57%
23,295,979
4,163,285
17.87%
19,132,694
4,156,180
7,105
0.17%
8,839,395
3,089,761
34.95%
5,749,634
3,432,945
(343,184)
-10.00%
32,135,374
7,253,046
22.57%
24,882,328
7,589,125
(336,079)
-4.43%
521,267
124,328
23.85%
396,939
127,570
(3,242)
-2.54%
55,000
(2,173)
-3.95%
57,173
10,971
(13,144)
-119.81%
1,577,000
340,567
21.60%
1,236,433
391,613
(51,046)
-13.03%
9,774,042
3,293,626
33.70%
6,480,416
2,324,218
969,408
41.71%
875,959
250,531
28.60%
625,428
311,674
(61,143)
-19.62%
12,803,268
4,006,879
31.30%
8,796,389
3,166,046
840,833
26.56%
100,000
12,573
12.57%
87,427
6,807
5,766
84.71%
42,000
42,954
102.27%
(954)
36,633
6,321
17.25%
2,425,500
606,244
24.99%
1,819,256
534,994
71,250
13.32%
150,000
45,538
30.36%
104,462
29,346
16,192
55.18%
328,124
49,186
14.99%
278,938
117,447
(68,261)
-58.12%
1,371,000
177,328
12.93%
1,193,672
166,333
10,995
6.61%
4,416,624
933,823
21.14%
3,482,801
891,560
42,263
4.74%
1.241.047
134,050 (1,234)
109,135,350 26,061,808
221,906,932 52,597,379
0.00% 1,241,047
N/A
-0.92%
135,284
18,559
(19,793)
-106.65%
23.88%
83,073,542
22,850,049
3,211,759
14.06%
23.70%
169,309,553
47,788,292
4,809,087
10.06%
Cost Allocation (20,762,230) (4,623,173) 22.27% (16,139,057) (4,881,091) 257,918 5.28%
Net Operating Requirements $ 201,144,702 $ 47,974,206 23.85% $ 153,170,496 $ 42,907,201 $ 5,067,005 11.81%
Section 2 - Page 7
Table of Contents
FY 2022-23 First
Quarter Financial
Report
Summary of Collection, Treatment, & Disposal Expenses by Process
For the Three Months Ended September 30, 2022
Increase
Increase
Actual
Actual
(Decrease)
(Decrease)
09/30/22
09/30/21
$
%
Process:
Preliminary Treatment
$ 1,982,667 $
2,493,867 $
(511,200)
-20.50%
Primary Treatment
5,386,247
4,552,762
833,485
18.31%
Secondary Treatment
3,078,948
2,794,068
284,880
10.20%
Cryogenic Plant (Plant 2)
464,553
223,764
240,789
107.61 %
Effluent Disposal
259,341
301,692
(42,351)
-14.04%
Solids Handling
12,846,549
12,289,770
556,779
4.53%
Cogeneration
7,569,655
5,783,139
1,786,516
30.89%
Utilities
1,051,039
1,046,548
4,491
0.43%
Electrical Distribution
546,163
841,308
(295,145)
-35.08%
Miscellaneous Buildings
3,616,737
2,912,045
704,692
24.20%
External Location
556,739
115,355
441,384
382.63%
Nerissa Vessel
53,854
60,426
(6,572)
-10.88%
Laboratory
3,995,350
3,594,592
400,758
11.15%
Collections
6,566,364
5,897,865
668,499
11.33%
Net Operating Requirements $ 47,974,206 $
42,907,201 $
5,067,005
11.81%
Section 2 - Page 8
Table of Contents
700
650
600
550
500
450
Operating Budget Review
Staffing Trends
Full Time Equivalents (FTE)
September 30, 2022
6/30/19 6/30/20 6/30/21 6/30/22 9/30/22
❑ Actual ❑ Vacant
At September 30, 2022, the total head count was 605 employees, or a full time equivalency of 597.
Section 2 - Page 9
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Section 2 - Page 10
Table of Contents
Capital Improvement Program Budget Review
Capital Improvement Program
By Process Area and Project Driver
For the Three Months Ended September 30, 2022
❑ Collections Facilities: 17.7%
❑ Liquid Treatment: 49.3%
■ Solids Handling & Digestion: 5.5%
❑ Utility Systems: 1.1 %
❑ Support Facilities: 21.2%
❑ Other: 5.2%
Total Capital Improvement Outlays by Process Area - $27,661,618
❑ Rehabilitation and Replacement: 74.9%
❑ Strategic Initiatives: 13.7%
❑ Additional Capacity: 3.1 %
❑ Regulatory: 8.3%
Total Capital Improvement Outlays by Project Driver - $27,661,618
Section 3 - Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2022
2022-23
2022-23
2022-23
Cashflow
Actual at
Projected
Budget
9/30/2022
Outlay
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehabilitation
2,200,761
125,916
1,839,900
Greenville -Sullivan Trunk Improvements
543,619
29,478
606,700
Taft Branch Capacity Improvements
908,634
423,524
1,136,400
Newhope-Placentia Trunk Replacement
1,605,022
223,536
2,935,100
Knott - Miller Holder - Artesia Branch Rehabiliation
186,776
6,106
71,000
Westminster Blvd Force Main Replacement
5,482,851
1,935,028
7,717,000
Rehabilitation of Western Regional Sewers
17,143,810
435,663
18,056,600
Interstate 405 Widening Project Impacts on OC San Sewers
71,348
3,318
3,400
Seal Beach Pump Station Replacement
1,199,570
16,385
1,111,000
Bay Bridge Pump Station Replacement
2,410,280
587,908
2,592,300
Newport Beach Pump Station Pressurization Improvements
1,145,097
3,580
831,900
Fairview Trunk Sewer Rehabilitation
604,156
5,988
333,000
MacArthur Pump Station Rehabilitation
50,828
-
-
Gisler Red -Hill Interceptor & Baker Force Main Rehabilitation
9,688,402
48,633
2,340,700
MacArthur Force Main Improvement
312,173
77,910
337,400
Edinger Pump Station Replacement
653,066
43,194
964,200
Small Construction Projects Program - Collections
5,576,407
500,803
5,172,100
Planning Studies Program - Collections
470,544
4,443
428,300
Sunflower and Red Hill Interceptor Repairs
3,325,654
412,447
4,421,800
Subtotal - Collections Facilities
53,578,998
4,883,860
50,898,800
Revenue Area 14
Bay Bridge Pumping Station Rehabilitation (3.62%)
90,529
22,082
97,400
Newport Beach Pump Station Pressurization Improve (0.27%)
3,100
10
2,300
Subtotal - Revenue Area 14
93,629
22,092
99,700
Total Collection System Improvement Projects
53,672,627
4,905,952
50,998,500
(Continued)
Section 3 - Page 2
Table of Contents
Capital Improvement Program Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2022
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1
Headworks Modifications at P2 for GWRS Final Expansion
Subtotal - Headworks
Primary Treatment
2022-23
2022-23
2022-23
Cashflow
Actual at
Projected
Budget
9/30/2022
Outlay
34,978,474
6,347,232
36,904,100
4,930,162
979,057
4,470,800
39,908,636
7,326,289
41,374,900
Primary Sedimentation Basins 3-5 Replacement at Plant 1
2,729,469
151,829
2,796,400
Primary Sedimentation Basins 6-31 Reliability Improv at P1
2,629,590
241,078
4,159,600
Primary Treatment Rehabilitation at Plant 2
30,540,736
4,392,780
30,951,200
Subtotal - Primary Treatment
35,899,795
4,785,687
37,907,200
Secondary Treatment
Activated Sludge-1 Aeration Basin & Blower Rehab at P1
1,096,586
53,360
1,195,500
Return Activated Sludge Piping Replacement at Plant 2
1,233,062
278,871
302,100
Activated Sludge Aeration Basin Rehabilitation at Plant 2
297,355
23,049
106,500
Subtotal - Secondary Treatment
2,627,003
355,280
1,604,100
Solids Handling & Digestion
Digester Ferric Chloride Piping Replacement at Plant 1
Interim Food Waste Receiving Facility
TPAD Digester Facility at Plant 2
Digesters Rehabilitation at Plant No. 2
Subtotal - Solids Handling & Digestion
Ocean Outfall Systems
Ocean Outfall System Rehabilitation
120-inch Ocean Outfall Rehabilitation
Sodium Bisulfite Station Rehabilitation at Plant 2
Emergency Overflow Pipes & Windwall Rehabilitation at P2
Subtotal - Ocean Outfall Systems
89,718
10,139
10,444,999
1,843,647
12,388,503
19,862,965
38,022
167,537
117,242
20,185,766
105,569
320
1,045,230
362,872
1,513,991
1,154,044
149,500
10,300
9,513,300
1,786,800
11,459,900
13,527,200
19,627 100,900
- 87,900
1,173,671 13,716,000
(Continued)
Section 3 - Page 3
Table of Contents
FY 2022-23 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2022
2022-23
2022-23
2022-23
Cashflow
Actual at
Projected
Budget
9/30/2022
Outlay
Utility Systems
Electrical Power Distribution System Improvements
2,119,310
166,112
921,800
Digester Gas Facilities Rehabilitation
146,143
29,676
663,400
Natural Gas Pipelines Replacement at Plants 1 and 2
78,826
74,685
78,100
Central Generation Engine Overhauls at Plants 1 and 2
1,494,195
69,568
9,918,800
Power Building Structural Seismic Improv at Plants 1 & 2
215,186
1,067
43,300
Uninterruptable Power Supply Improvements at Plant 1
1,931,267
(34,438)
247,100
Industrial Control System & IT Data Center Relocation at P1
219,007
-
-
Subtotal - Utility Systems
61203,934
306,670
11,872,500
Information Management Systems
Process Control Systems Upgrades
7,701,063
378,398
3,903,300
Project Management Information System
670,937
9,324
237,200
Information Technology Capital Program
3,007,946
530,132
3,493,000
EAM Software and Process Implementation
383,371
11,944
265,300
Subtotal - Information Management Systems
11,763,317
929,798
7,898,800
Strategic & Master Planning
Planning Studies Program
4,680,829
196,174
5,083,300
Subtotal - Strategic & Master Planning
4,680,829
196,174
5,083,300
Water Management Projects
GWRS Final Expansion Coordination
272,062
31,909
287,700
Subtotal - Water Management Projects
272,062
31,909
287,700
Research
Research Program
6,001,774
100,080
543,400
Subtotal - Research
6,001,774
100,080
543,400
(Continued)
Section 3 - Page 4
Table of Contents
Capital Improvement Program Budget Review
Summary of Capital Improvement Construction Requirements - Current Year
For the Three Months Ended September 30, 2022
Support Facilities
Small Construction Projects Program
Operations & Maintenance Capital Program
Headquarters Complex
South Perimeter Security & Utility Improvements at Plant 1
Support Buildings Seismic Improvements at Plant 1
Administrative Facilities & Power Building 3A Demolition
Collections Yard Relocation
Operations and Maintenance Complex at Plant 2
Subtotal - Support Facilities
Others
Capital Improvement Program Management Services
Subtotal - Others
Additional Charges to CIP Completed at 6/30/22
Total Treatment and Disposal Projects
Capital Equipment Purchases
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases
Less: Savings and Deferrals
Net Collection, Treatment and Disposal Projects
and Capital Equipment Purchases
2022-23
2022-23
2022-23
Cashflow
Actual at
Projected
Budget
9/30/2022
Outlay
15,340,569
761,528
10,890,700
1,629,669
75,073
1,537,700
61,197,823
4,235,285
61,631,500
3,738,937
743,956
2,901,700
769,029
2,581
648,900
62,055
-
-
168,066
6,934
182,800
832,402
25,582
875,000
83,738,550
5,850,939
78,668,300
324,865
7,797
297,500
324,865
7,797
297,500
-
-
100,000
223,995,034
22,578,285
210,813,600
6,949,700
177,381
6,949,700
284,617,361
27,661,618
268,761,800
(16,450,000)
-
-
$268,167,361 $ 27,661,618 $268,761,800
Section 3 - Page 5
Table of Contents
FY 2022-23 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2022
Collection System Improvement Projects
Collections Facilities
Santa Ana Trunk Sewer Rehabilitation
Greenville -Sullivan Trunk Improvements
Taft Branch Capacity Improvements
Newhope-Placentia Trunk Replacement
Yorba Linda Dosing Station Installation
Santa Ana Canyon South River Trunk Rebabilitation
Knott - Miller Holder - Artesia Branch Rehabiliation
Westminster Blvd Force Main Replacement
Rehabilitation of Western Regional Sewers
Interstate 405 Widening Project Impacts on OC San Sewers
Seal Beach Pump Station Replacement
Los Alamitos Sub -Trunk Extension
Crystal Cove Pump Station Rehabilitation
Bay Bridge Pump Station Replacement
Newport Beach Pump Station Pressurization Improvements
Fairview Trunk Sewer Rehabilitation
MacArthur Pump Station Rehabilitation
Main Street Pump Station Rehabilitation
Gisler Red -Hill Interceptor & Baker Force Main Rehabilitation
MacArthur Force Main Improvement
North Trunk Improvements
Edinger Pump Station Replacement
Slater Pump Station Rehabilitation
Small Construction Projects Program - Collections
Operations & Maintenance Capital Program - Collections
Planning Studies Program - Collections
Sunflower and Red Hill Interceptor Repairs
Subtotal - Collections Facilities
Current
Total
Approved June 30, 2022 Year
Projected Remaining
Project Accumulated Projected
Cost at Future
Budget Cost Cost
June 30, 2023 Budget
54,620,000
182,469
1,839,900
2,022,369
52,597,631
48,600,000
68,831
606,700
675,531
47,924,469
24,300,000
1,035,786
1,136,400
2,172,186
22,127,814
112,000,000
108,787,808
2,935,100
111,722,908
277,092
11,266,000
-
-
-
11,266,000
16,276,000
-
-
16,276,000
28,317,000
-
71,000
71,000
28,246,000
43,000,000
34,186,462
7,717,000
41,903,462
1,096,538
101,000,000
27,752,574
18,056,600
45,809,174
55,190,826
500,000
292,050
3,400
295,450
204,550
87,000,000
7,663,266
1,111,000
8,774,266
78,225,734
116,799,000
-
-
-
116,799,000
13,903,000
-
-
-
13,903,000
102,162,800
10,176,020
2,592,300
12,768,320
89,394,480
3,191,360
714,752
831,900
1,546,652
1,644,708
19,300,000
123,946
333,000
456,946
18,843,054
9,329,000
-
-
-
9,329,000
37,663,000
-
-
-
37,663,000
44,400,000
2,169,842
2,340,700
4,510,542
39,889,458
7,150,000
589,229
337,400
926,629
6,223,371
10,854,000
-
-
-
10,854,000
17,300,000
155,738
964,200
1,119,938
16,180,062
28,511,000
16,480
-
16,480
28,494,520
9,489,000
3,267,693
5,172,100
8,439,793
1,049,207
568,000
270,754
-
270,754
297,246
1,371,000
379,436
428,300
807,736
563,264
7,000,000
1,694,005
4,421,800
6,115,805
884,195
955,870,160
199,527,141
50,898,800
250,425,941
705,444,219
Revenue Area 14:
Bay Bridge Pumping Station Rehabilitation (3.62%)
3,837,200
382,208
97,400
479,608
3,357,592
Newport Beach Pump Station Pressurization Improve (0.27%)
8,640
1,935
2,300
4,235
4,405
Subtotal - Revenue Area 14
3,845,840
384,143
99,700
483,843
3,361,997
Total Collection System Improvement Projects
959,716,000
199,911,284
50,998,500
250,909,784
708,806,216
(Continued)
Section 3 - Page 6
Table of Contents
Capital Improvement Program Budget Review
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2022
Current
Total
Approved June 30, 2022 Year
Projected Remaining
Project Accumulated Projected
Cost at Future
Budget Cost Cost
June 30, 2023 Budget
Treatment & Disposal Projects
Headworks
Headworks Rehabilitation at Plant 1 340,000,000 68,730,878 36,904,100 105,634,978 234,365,022
Headworks Modifications at P2 for GWRS Final Expansion 30,400,000 24,319,296 4,470,800 28,790,096 1,609,904
Subtotal - Headworks 370,400,000 93,050,174 41,374,900 134,425,074 235,974,926
Primary Treatment
Primary Sedimentation Basins 3-5 Replacement at Plant 1
Primary Sedimentation Basins 6-31 Reliability Improv at P1
Primary Treatment Rehabilitation at Plant 2
B/C-Side Primary Clarifiers Rehabilitation at Plant 2
Subtotal - Primary Treatment
Secondary Treatment
Activated Sludge-1 Aeration Basin & Blower Rehab at P1
Return Activated Sludge Piping Replacement at Plant 2
Activated Sludge Aeration Basin Rehabilitation at Plant 2
Subtotal - Secondary Treatment
Solids Handling & Digestion
Digester Ferric Chloride Piping Replacement at Plant 1
Interim Food Waste Receiving Facility
TPAD Digester Facility at Plant 2
Digester P, Q, R, and S Replacement
Digesters Rehabilitation at Plant No. 2
Truck Loading Bay Odor Control Improvements at Plant 2
Subtotal - Solids Handling & Digestion
Ocean Outfall Systems
Ocean Outfall System Rehabilitation
120-inch Ocean Outfall Rehabilitation
Sodium Bisulfite Station Rehabilitation at Plant 2
Emergency Overflow Pipes & Windwall Rehabilitation at P2
Subtotal - Ocean Outfall Systems
183,000,000
830,406
2,796,400
3,626,806
179,373,194
14,000,000
2,386,965
4,159,600
6,546,565
7,453,435
188,000,000
56,597,712
30,951,200
87,548,912
100,451,088
306,093,000
-
-
-
306,093,000
691,093,000
59,815,083
37,907,200
97,722,283
593,370,717
280,000,000
202,873
1,195,500
1,398,373
278,601,627
10,000,000
9,103,909
302,100
9,406,009
593,991
65,600,000
69,817
106,500
176,317
65,423,683
355,600,000
9,376,599
1,604,100
10,980,699
344,619,301
1,260,000
948,606
149,500
1,098,106
161,894
6,300,000
1,348,671
10,300
1,358,971
4,941,029
475,000,000
15,113,088
9,513,300
24,626,388
450,373,612
171,359,000
-
-
-
171,359,000
40,632,000
240,209
1,786,800
2,027,009
38,604,991
7,600,000
-
-
-
7,600,000
702,151,000
17,650,574
11,459,900
29,110,474
673,040,526
166,000,000 100,967,433
13,527,200
114,494,633
51,505,367
64,968,000 -
-
-
64,968,000
5,000,000 59,345
100,900
160,245
4,839,755
4,370,000 -
87,900
87,900
4,282,100
240, 338,000 101, 026, 778
13, 716,000
114,742,778
125, 595,222
(Continued)
Section 3 - Page 7
Table of Contents
FY 2022-23 First Quarter Financial Report
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2022
Utility Systems
Electrical Power Distribution System Improvements
Digester Gas Facilities Rehabilitation
Natural Gas Pipelines Replacement at Plants 1 and 2
Central Generation Engine Overhauls at Plants 1 and 2
Power Building Structural Seismic Improv at Plants 1 & 2
Central Generation Rehabilitation at Plant 1
Uninterruptable Power Supply Improvements at Plant 1
12.47 kV Switchgear Replacement at CenGen at Plant 1
Industrial Control System & IT Data Center Relocation at P1
Central Generation Rehabilitation at Plant 2
Subtotal - Utility Systems
Information Management Systems
Process Control Systems Upgrades
Project Management Information System
Information Technology Capital Program
EAM Software and Process Implementation
Subtotal - Information Management Systems
Strategic & Master Planning
Planning Studies Program
Subtotal - Strategic & Master Planning
Water Management Projects
GWRS Final Expansion Coordination
Subtotal - Water Management Projects
Research
Research Program
Subtotal - Research
Current
Total
Approved June 30, 2022 Year
Projected Remaining
Project Accumulated Projected
Cost at Future
Budget Cost Cost
June 30, 2023 Budget
27,700,000
3,064,884
921,800
3,986,684
23,713,316
173,000,000
16,305,089
663,400
16,968,489
156,031,511
2,150,000
2,095,716
78,100
2,173,816
(23,816)
44,000,000
4,375,021
9,918,800
14,293,821
29,706,179
5,400,000
23,811
43,300
67,111
5,332,889
33,302,000
-
-
-
33,302,000
7,000,000
1,481,688
247,100
1,728,788
5,271,212
15,388,000
-
-
-
15,388,000
5,700,000
-
5,700,000
53,108,000
53,108,000
366,748,000
27,346,209
11,872,500
39,218,709
327,529,291
37,000,000
954,396
3,903,300
4,857,696
32,142,304
2,280,000
1,486,363
237,200
1,723,563
556,437
10,000,000
815,948
3,493,000
4,308,948
5,691,052
9,200,000
6,664,411
265,300
6,929,711
2,270,289
58,480,000
9,921,118
7,898,800
17,819,918
40,660,082
27,281,000 5,590,365 5,083,300 10,673,665 16,607,335
27,281,000 5,590,365 5,083,300 10,673,665 16,607,335
1,399,997 1,105,262 287,700 1,392,962 7,035
1,399,997 1,105,262 287,700 1,392,962 7,035
10,000,000 2,617,245 543,400 3,160,645 6,839,355
10,000,000 2,617,245 543,400 3,160,645 6,839,355
(Continued)
Section 3 - Page 8
Table of Contents
Capital Improvement Program Budget Review
Summary of Capital Improvement Construction Requirements - Project Life
For the Three Months Ended September 30, 2022
Support Facilities
Small Construction Projects Program
Operations & Maintenance Capital Program
Laboratory Rehabilitation at Plant 1
Headquarters Complex
South Perimeter Security & Utility Improvements at Plant 1
Support Buildings Seismic Improvements at Plant 1
Administrative Facilities & Power Building 3A Demolition
Collections Yard Relocation
Operations and Maintenance Complex at Plant 2
Subtotal - Support Facilities
Others
Capital Improvement Program Management Services
Subtotal - Others
Additional Charges to CIP Completed at 6/30/22
Total Treatment and Disposal Projects
Capital Equipment Purchases
Total Collection, Treatment and Disposal Projects
and Capital Equipment Purchases
Current
Total
Approved June 30, 2022 Year
Projected Remaining
Project Accumulated Projected
Cost at Future
Budget Cost Cost
June 30, 2023 Budget
80,511,000
19,373,667
10,890,700
30,264,367
50,246,633
15,054,000
1,586,585
1,537,700
3,124,285
11,929,715
100,000,000
-
-
-
100,000,000
167,500,000
74,108,146
61,631,500
135,739,646
31,760,354
8,150,000
4,437,929
2,901,700
7,339,629
810,371
23,730,000
82,062
648,900
730,962
22,999,038
8,910,000
-
-
-
8,910,000
1,900,000
3,487
182,800
186,287
1,713,713
84,000,000
226,529
875,000
1,101,529
82,898,471
489,755,000
99,818,405
78,668,300
178,486,705
311,268,295
700,000 423,335 297,500 720,835 (20,835)
700,000 423,335 297,500 720,835 (20,835)
- 100,000 100,000 (100,000)
3,313,945,997 427,741,147 210,813,600 638,554,747 2,675,391,250
16,278,248 - 6,949,700 6,949,700 9,328,548
$4,289,940,245 $627,652,431 $268,761,800 $896,414,231 $3,393,526,014
Section 3 - Page 9
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Section 3 - Page 10
Table of Contents
Capital Assets Schedule & Debt Service Budget Review
Capital Assets Schedule & Debt Service Budget Review
For the Three Months Ended September 30, 2022
Capital Assets Schedule
CONSTRUCTION IN PROGRESS (CIP):
Collection System
Treatment Plant
Subtotal
PROPERTY, PLANT & EQUIPMENT (at cost):
Land and Property Rights
Collection Lines and Pump Stations
Treatment Facilities
Effluent disposal facilities
Solids disposal facilities
General and administrative facilities
Leased sewage collection facilities
Excess purchase price over book value on acquired assets
Subtotal
Balance
07/01 /22
Year -to -Date
Activity
Balance
09/30/22
$ 169,154,138
$ 4,905,952 $ 174,060,090
382,973,407
22,755,666 405,729,073
552,127,545
27,661,618 579,789,163
57,680,623
- 57,680,623
900,839,423
- 900,839,423
2,826,642,906
- 2,826,642,906
96,972,016
- 96,972,016
3,463,236
- 3,463,236
261,393,327
- 261,393,327
86,747
- 86,747
19,979,000
- 19,979,000
4,167,057,278
- 4,167,057,278
Total Property, Plant & Equipment & CIP $ 4,719,184,823 $ 27,661,618 $ 4,746,846,441
Debt Service Budget Review
2022-23 Year -to -Date Remaining
Budget Payments % of Budget Budget
Principal Payments by Debt Issue:
2010A BABs
2010C BABs
2014A COP
2015A COP
2016A COP
2017A COP
2021A COP
2022A COP
Subtotal Principal Payments
Interest Expense by Debt Issue:
2010A BABs
2010C BABs
2014A COP
2015A COP
2016A COP
2017A COP
2021A COP
2022A COP
Subtotal Interest Expense
Total Debt Service
8,655,000
-
0.00%
8,655,000
5,110,000
-
0.00%
5,110,000
16,270,000
-
0.00%
16,270,000
30,035,000
-
0.00%
30,035,000
2,986,574
991,837
33.21%
1,994,737
6,724,010
2,233,155
33.21%
4,490,855
2,391,750
597,875
25.00%
1,793,875
6,375,500
1,593,850
25.00%
4,781,650
6,281,550
1,570,375
25.00%
4,711,175
3,290,750
822,775
25.00%
2,467,975
6,402,000
1,600,500
25.00%
4,801,500
4,081,000
1,022,328
25.05%
3,058,672
38,533,134
10,432,695
27.07%
28,100,439
$ 68,568,134 $
10,432,695
15.22%
$ 58,135,439
Section 4 - Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Section 4 - Page 2
Table of Contents
Revenues:
In -Lieu Premiums
Service Department Allocations
Total Revenues
Expenses:
Benefits/Claims
Legal Services
Professional Services
Subtotal
Policy Premium Expense
Total Expenses
Excess Revenue (Expense)
Beginning Reserves
Ending Reserves
Self Insurance Budget Review
General Liability and Property Fund Budget Review
For the Three Months Ended September 30, 2022
Percent
Actual of Budget Remaining Actual
2022-23 Through Through 2022-23 Through Increase
Budget 09/30/22 09/30/22 Budget 09/30/21 (Decrease)
$ 2,425,000 $
606,244
25.00%
$ 1,818,756
$ 534,994 $
71,250
10,000
2,220
22.20%
7,780
1,776
444
2,435,000
608,464
24.99%
1,826,536
536,770
71,694
20,000
40,000
40,000
-
20,000
3,872
80,000
43,872
2,820,000
739,312
2,900,000
783,184
(465,000)
(174,720)
98,465,000
98,000,000
$ 98,000,000
$ 97,825,280
200.00%
(20,000)
115
39,885
0.00%
40,000
-
-
19.36%
16,128
5,913
(2,041)
54.84%
36,128
6,028
37,844
26.22%
2,080,688
613,157
126,155
27.01%
2,116,816
619,185
163,999
$ (290,280)
(82,415)
(92,305)
98,000,000
-
$ 97,917,585 $ (92,305)
Section 5 - Page 1
Table of Contents
FY 2022-23 First Quarter Financial Report
Revenues:
In -Lieu Premiums
Service Department Allocations
Total Revenues
Expenses:
Benefits/Claims
Legal Services
Professional Services
Subtotal
Policy Premium Expense
Total Expenses
Excess Revenue (Expense)
Beginning Reserves
Ending Reserves
Workers' Compensation Fund Budget Review
For the Three Months Ended September 30, 2022
Actual
2022-23 Through
Budget 09/30/22
$ 518,500 $ 129,625
90,000 24,699
608,500 154,324
390,000
120,523
60,000
20,816
70,000
12,414
520,000
153,753
270,000
77,346
790,000
231,099
(181,500)
(76,775)
2,181,500 2,000,000
$ 2,000,000 $ 1,923,225
Percent
of Budget Remaining
Through 2022-23
09/30/22 Budget
Actual
Through Increase
09/30/21 (Decrease)
25.00%
$ 388,875
$ 195,000
$ (65,375)
27.44%
65,301
22,425
2,274
25.36%
454,176
217,425
(63,101)
30.90%
269,477
105,782
14,741
34.69%
39,184
-
20,816
17.73%
57,586
15,553
(3,139)
29.57%
366,247
121,335
32,418
28.65%
192,654
66,589
10,757
29.25%
558,901
187,924
43,175
$ (104,725)
29,501
(106,276)
2,000,000
-
$ 2,029,501
$ (106,276)
Section 5 - Page 2
Table of Contents
October 31, 2022
STAFF REPORT
Quarterly Treasurer's Report
For the Period Ended September 30, 2022
SUMMARY
Section 17.0 of the Orange County Sanitation District's (OC San) Investment Policy
includes quarterly reporting requirements for OC San's two investment portfolios. These
two funds, the "Liquid Operating Monies," and the "Long -Term Operating Monies" are
managed by Chandler Asset Management, OC San's external money manager.
The ongoing monitoring of OC San's investment program by staff and Callan Associates,
OC San's independent investment advisor, indicates that OC San's investments are in
compliance with OC San's adopted Investment Policy and the California Government
Code, and that overall performance has tracked with benchmark indices. In addition,
sufficient liquidity and anticipated revenues are available for OC San to meet budgeted
expenditures for the next six months. OC San's portfolios do not include any reverse
repurchase agreements or derivative securities.
ADDITIONAL INFORMATION
Performance Reports
The Quarterly Strategy Review, prepared by Chandler Asset Management, and the
Investment Measurement Service Quarterly Review, prepared by Callan Associates, is
attached for reference. Also attached are Long -Term and Liquid Operating Monies
Summary of Performance Data and Portfolio Statistics charts that depict the performance
results, estimated yield and duration, credit quality, and sector diversification of OC San's
portfolios, as of September 30, 2022. The Liquid Operating Monies portfolio, with an
average maturity of 102 days, consists entirely of high quality fixed income investments
consistent with OC San's investment policy.
Portfolio Performance Summary
The following table presents a performance summary of OC San's portfolios as compared
to their benchmarks as of September 30, 2022.
Table of Contents
Quarterly Treasurer's Report
For the Period Ended September 30, 2022
Page 2 of 4
Portfolio Performance Summary
As of September 30, 2022
Liquid Operating Monies (%)
Long -Term Operating Monies (%)
Total Rate of
Return
Benchmark0)
Total Rate of
Return
Benchmark0)
3 Months
0.35
0.46
-2.01
-2.26
6 Months
0.39
0.57
-2.94
-3.20
9 Months
0.38
0.61
-5.78
-6.34
12 Months
0.38
0.62
-6.38
-6.98
Annualized Since inception 30 Nov 2014
0.92
0.85
0.86
0.75
Market Value
$109.5 M
$700.2 M
Average Quality
"AA,17"Aa1"
11AA"P'Aa1"
Current Yield (%)
2.0
1.7
Estimated Yield to Maturity (%)
3.5
4.3
Quarterly Deposits (Withdrawals)
($75.0 M)
$0.0 M
Estimated Annual Income
$2.2 M
$11.7 M
(1) Benchmarks:
■ Liquid Operating Portfolio: ICE BAML 3-Month Treasury Bill Index
■ Long -Term Operating Portfolio: ICE BAML Corp/Govt. 1-5 Year Bond Index
Portfolio Market Values
Comparative marked -to -market quarter -end portfolio values are shown in the following table, and in the
attached bar chart.
Quarter
Ending
Liquid
Operating
Monies ($M)
Long -Term
Operating
Monies ($M)
31 Dec 21
230.9
742.2
31 Mar 22
155.8
720.7
31 Jun 22
183.9
714.1
31 Sep 22
109.5
700.2
Table of Contents
Quarterly Treasurer's Report
For the Period Ended September 30, 2022
Page 3 of 4
Orange County Sanitation District Investment Account Balances as of September 30, 2022
Investment Accounts
Book Balances
September 30, 2022
Estimated
Yield (%)
Chandler/U.S. Bank — Long -Term Portfolio
$699,920,416
4.42
Chandler/U.S. Bank — Short -Term Portfolio
109,469,457
3.53
State of California LAIF
55,660,315
1.51
PARS Section 115 Trust - Moderate
8,341,697
-6.32
PARS Section 115 Trust - Balanced
4,127,683
-6.83
Banc of California — General
3,000,000
0.45
Banc of California — Sweep
3,558,666
0.02
Banc of California — Workers' Compensation
69,125
0.45
Banc of California — Property, Liability Claim, Exp
50,000
0.45
Union Bank — Mount Langley
472,802
0.59
Union Bank — Bandilier
253,996
0.59
BNY Mellon OCIP Reserve
250,000
0.00
Petty Cash
3,000
0.00
TOTAL
$885,1771-57
3.94
Debt Service Reserves w/Trustees
26 7 2
2.73
Orange County Sanitation District Cost of Funds on Debt Issues as of September 30, 2022
Cost of Funds
Issue Description
Outstanding
COP Balance
Annual
Interest
Rate (%)
2010A Fixed
80,000,000
3.68
2010C Fixed
157,000,000
4.11
2014A Fixed
47,835,000
2.34
2015A Fixed
127,510,000
3.30
2016A Fixed
131,965,000
3.02
2017A Fixed
65,815,000
2.55
2021A Fixed
128,040,000
1.06
2022A Fixed
81,620,000
1.59
TOTAL
$819,785,000
Weighted Avg. Cost of Funds
2.81
Table of Contents
Quarterly Treasurer's Report
For the Period Ended September 30, 2022
Page 4 of 4
ATTACHMENTS
1. Chandler Quarterly Report
2. Summary of Performance Data and Portfolio Statistics — Liquid Operating Monies
3. Summary of Performance Data and Portfolio Statistics — Long Term Operating
Monies
4. Investment Transactions and Balances in LAIF
5. Asset Summary by Asset Type — Liquid Operating Portfolio
6. Asset Summary by Asset Type — Long Term Portfolio
7. Asset Summary by Asset Type — Owner Controlled Insurance Program Escrow
Account
8. Investment Listing (Yield Analysis Report)
9. Asset Detail — Consolidated
10. Chandler/U.S. Bank Custody Transaction History —Consolidated
11. Callan Quarterly Review
12. Chandler Quarterly Review
13. Rating Agency Comparisons
14. PARS Section 115 Trust Quarterly Review
Table of Contents
CHANDLER
ASSET ASSET MANAGEMENT
September 30, 2022
Mr. Lorenzo Tyner
Assistant General Manager
Director of Finance and Administrative Services
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley CA 92708-7018
Dear Lorenzo,
Bond Market Reca
Market volatility has intensified as financial conditions tighten and global central banks pursue monetary policies to
combat persistently high inflation and maintain financial market stability. Labor markets and consumer balance sheets
remain strong; however, inflation is weighing heavily on consumer sentiment and beginning to impact discretionary
spending. Corporate earnings have generally performed better than expected, but warnings are growing along with wider
credit spreads. While evidence of slower economic conditions has begun to mount, we expect the Federal Reserve to
continue to raise rates until a sustainable improvement in inflationary conditions has been achieved. Over the near -term,
we expect financial market volatility to remain intensified and conditions tighter with persistent inflation, geopolitical risk,
and the Fed's hawkish monetary policy.
At the September meeting, the Federal Open Market Committee (FOMC) delivered the third 75-basis point increase to
the Fed Funds Rate, increasing the range from 3.00% to 3.25%. The FOMC acknowledged spending and production are
experiencing modest growth, offset by a robust labor market and elevated inflation metrics. We expect the Fed to continue
to increase the federal funds rate in the near term until inflationary pressures weaken.
In September, yields rose significantly across the curve. The 2-year Treasury yield increased 79 basis points to 4.28%, the
5-year Treasury yield rose 74 basis points to 4.09%, and the 10-year Treasury yield gained 64 basis points to 3.83%. The
spread between the 2-year Treasury yield and 10-year Treasury yield became more inverted at -45 basis points at
September month -end versus -30 basis points at August month -end. The spread was a positive 121 basis points one year
ago. The spread between 3-month and 10-year treasuries widened to 56 basis points in September compared to just 27
basis points in August. The shape of the curve does not necessarily indicate an imminent recession but bears watching as
a better predictor of recession over the medium -term.
US Treasury yields rose sharply in September. On a year-to-date basis, the 2-year Treasury yield was up 355 basis points,
the 5-year Treasury yield rose 283 basis points, and the 10-year Treasury yield gained 232 basis points. The spread between
the 2-year Treasury yield and 10-year Treasury yield inverted to -45 basis points versus +78 basis points at year-end. The
average historical spread (since 2003) is about 130 basis points. The spread between 3-month and 10-year treasuries was
56 basis points in September compared to about 148 basis points at the start of the year.
Table of Contents
CHANDLER
ASSET ASSET MANAGEMENT
Consumer Prices
The Consumer Price Index (CPI) increased more than expected in September, with increases were broad based led by gains
in shelter, food, and medical care while prices for gasoline and used cars declined. Headline CPI increased 8.2% year -over -
year in September, versus expectations for an 8.1% increase, and down from an 8.3% year -over -year gain in August. Core
CPI, which excludes food and energy, increased 6.6% from a year ago, the highest level since 1982. The Personal
Consumption Expenditures (PCE) index rose 6.2% in August, higher than consensus estimates of up 6.0%, but down from
a 6.4% increase last month. Core PCE was up 4.9% year -over -year in August, versus up 4.7% year -over -year in July.
Persistently elevated inflation is likely to keep the Federal Reserve on the path of tightening monetary policy as long as it
continues to run well above the Fed's longer -run target of around 2.0%.
Retail Sales
Retail sales were up 8.2% year -over -year in September, slowing from August's 9.4% year -over -year gain that surprised to
the upside, Retail sales growth is starting to reflect the headwinds from higher prices as consumers dip into savings and
assume more debt. The Conference Board's Consumer Confidence Index rose for the second month in a row to 108.0 in
September, with gains in both the present situation and future expectation components. The strength was tied directly to
the consumer's assessment of the labor market, which continues to reflect the demand for labor outstripping supply.
Labor Market
The U.S. economy added 263,000 jobs in September, surpassing market expectations of 255,000, and gains were revised
upward by 11,000 for the prior two months. Trends in employment remain strong, with the three-month moving average
payrolls at 372,000 and the six-month moving average at 360,000. Hiring was widespread, with solid increases in education
and health services, leisure and hospitality, and professional and business services. The unemployment rate fell to 3.5%
from 3.7%, as the labor participation rate edged down to 62.3% in September from 62.4% in August. The U-6
underemployment rate, which includes those who are marginally attached to the labor force and employed part time for
economic reasons dropped to 6.7% from 7.0% last month. Average hourly earnings rose 5.0% year -over -year in September
compared to 5.2% year -over -year in August, a constructive development for the inflation outlook. The strong September
labor report bolsters the case for the Fed to continue raising the federal funds rate.
Housing Starts
Total housing starts increased 12.2% to an annual rate of 1,575,000 in August, from a revised 1,404,000 units in July.
Single-family home starts increased 3.4% and multi -family homes increased 28% month -over -month. On a year -over -
year basis, total housing starts decreased 0.1% reflecting a shift from single-family units to more affordable multi -family
units as homebuyers struggle with a combination of elevated prices and higher mortgage rates. Mortgage rates for a 30-
year fixed-rate loan are higher than they have been since 2007 at 6.7%. According to the Case-Shiller 20-City Home Price
Index, the year -over -year increase receded from 18.7% in June to 16.1% in July, clearly displaying the impact of higher
mortgage rates which have reduced demand for homebuying as affordability has declined.
2
Table of Contents
C3% CHANDLER
ASSET MANAGEMENT
TREASURY YIELDS 9/30/2022 6/30/2022 CHANGE
3 Month
3.27
1.67
2 Year
4.28
2.96
3 Year
4.29
3.01
5 Year
4.09
3.04
7 Year
3.99
3.07
10 Year
. 3.83
3.02
30 Year
3.78
3.19
Persistent Inflationary Pressures Remain in the US Economy
ECONOMIC INDICATOR
Trade Balance
Gross Domestic Product
Unemployment Rate
Prime Rate
Refinitiv/CoreCommodityCRB Index
Oil (West Texas Int.)
Consumer Price Index (y/o/y)
Producer Price Index (y/o/y)
Euro/Dollar
Source: Bloomberg
1.60
1.32
1.28
1.05
0.92
0.81
0.59
Current Release Prior Release One Year Ago
(67.40) $Bln AUG 22
(0.60%)JUN 22
3.50% SEP 22
6.2S% SEP 22
268.29 SEP 22
$79.49 SEP 22
8.20% SEP 22
11.50% SEP 22
0.98 SEP 22
(70.46) $Bln JUL 22
(1.60%) MAR 22
3.70% AUG 22
5.50% AUG 22
290.41 AUG 22
$89.55 AUG 22
8.30% AUG 22
12.80% AUG 22
1.01 AUG 22
(71.43) $Bln AUG 21
7.00%JUN 21
4.70% SEP 21
3.2S% SEP 21
228.92 SEP 21
$75.03 SEP 21
5.40% SEP 21
11.80% SEP 21
1.16 SEP 21
3
Table of Contents
CHANDLER
ASSET ASSET MANAGEMENT
Performance Attribution
Long -Term Portfolio
The OC Sanitation Long -Term Portfolio generated a negative total return of -2.01% during the quarter, outperforming
the -2.26% return of the ICE Bank of America 1-5 Year US Corporate and Government AAA -A Index by 25 basis points
during the three-month period ending September 30, 2022. Financial conditions continued to tighten and interest rates
moved higher, with the Fed Funds rate increasing by another 1.50% during the quarter. The term structure positioning
of the portfolio, relative to the benchmark, as well as the overall up in quality bias of the Corporate portion of the
allocation were positive contributors to the relative outperformance of the portfolio during the quarter.
Multiple securities were purchased in the Treasury, Asset Backed, and Corporate portions of the allocation to keep the
portfolio structured consistent with Chandler targets. The purchased securities ranged in maturity from July 2025 to
September 2027. Several securities were sold, and one matured, to facilitate the new positions in the portfolio. The
sector allocation was relatively stable over the reporting period, the Chandler team is focused on optimizing the
underlying mix of securities within the respective sector allocations. The two largest adjustments were the 1.1% increase
in the Corporate allocation, to 26.4% of the portfolio, partially offset by the 0.9% decline in the money market allocation
to 0.2% of the portfolio. The duration of the portfolio was stable, ending the quarter unchanged at 2.41 years. The
Chandler team if focused on keeping the overall duration of the portfolio consistent with the benchmark and altering
the term structure of the portfolio to assist in generating positive relative returns versus the benchmark.
Liquid Portfolio
The Liquidity Portfolio generated a total quarterly return of 0.35% compared to the 0.46% return of the ICE Bank of
America 3-month US Treasury Bill Index. Several securities were purchased in the Treasury, Agency, and Corporate
portfolios of the allocation. The purchased securities ranged in maturity from November 2022 to June 2023. A few
securities matured and a net $75 million was withdrawn from the portfolio during the quarter. The sector allocation
evolved linked to the large cash withdrawal during the reporting period. Some of the larger changes include the 13.7%
reduction in the US Treasury allocation, to 63.3% of the portfolio, partially offset by the 6.3% increase in the Corporate
allocation, to 13.0% of the portfolio. The duration of the portfolio contracted moderately, currently 0.28 years compared
to 0.33 years at the end of the prior quarter. The duration of the portfolio is driven by the cash flow needs of OC
Sanitation and is poised to remain in a range over the coming quarters.
Table of Contents
CHANDLER
ASSET ASSET MANAGEMENT
Economic Outlook
The debate over whether the US economy is poised for a hard or soft landing continues to evolve with economic data
available to support both outcomes, contributing to elevated market volatility. Geopolitical risks remain acute with the
energy crisis in Europe and the long-term implications of the Russia/Ukraine conflict a well -documented calamity, China
continuing to implement its zero COVID policy and face a housing crisis, and the United Kingdom confronting market
stress due to its expansionary fiscal plans and tightening monetary policy, all contributing to market angst. The backdrop
in the United States is more constructive on a relative basis with the most recent payrolls report showing job growth of
263k on the month, a three-month moving average of 372k, and the unemployment rate down to 3.5%. Despite two
quarters in a row of negative GDP growth in the first half of 2022, softening ISM Manufacturing and stable ISM Services
releases, exhibiting the transition of the economy away from the impact of COVID, the mosaic of data in the domestic
economy remains inconsistent with a recession in Chandler's view. However, the risk of a deteriorating economy in the
first half of 2023 remains as financial conditions continue to become more restrictive.
The pace of the Federal Reserve's Quantitative Tightening (QT) increased to $95 billion per month and the Fed Funds
rate moved higher by 1.50% during the quarter to a current range of 3.00% to 3.25%. Future increases in the Fed Funds
rate are forecasted in November and December and it is likely the terminal Fed Funds rate is at least 4.5% in this cycle as
inflation metrics continue to run well above the Federal Reserve's 2% objective. Core CPI on a year over year basis ticked
up by 0.3pp in September to 6.6% and core PCE inflation, as of August, ticked up 0.2pp on an annualized basis from the
prior month to 4.9% year -over -year. The Chandler team forecasts inflation will moderate in coming months but remain
challenged to approach the Federal Reserves 2% objective over the next 12 to 24 months, signaling monetary policy will
need to be maintained in a restrictive setting over an intermediate time horizon.
One of the more significant adjustments to financial conditions during the quarter was the move higher in both nominal
and real interest rates, offset by the decline in breakeven inflation rates (Nominal Rate = Break Even Inflation Rate + Real
Rate). Real rates had been in negative territory when financial conditions were exceptionally accommodative, and the
Fed Funds rate was set close to the zero lower bound; Federal Reserve officials have noted an increase in real rates into
positive territory would be consistent with tighter financial conditions and based on the change in rates during the
quarter this objective has been achieved. Additionally, the move lower in US Treasury TIPS breakeven inflation rates is
consistent with long-term inflation metrics remaining anchored; based on longer term inflation metrics market
participants remain confident in the Federal Reserve's ability to meet its objective of stable prices. Both investment
grade and high yield credit spreads were relatively stable on a quarter over quarter basis, despite the volatility intra-
quarter, and significantly higher on a year-to-date basis. Market volatility is forecasted to remain elevated and
correlated with the lack of visibility on the timing and magnitude of an improvement in inflation metrics and therefore
when the Federal Reserve will be able to slow the pace of policy tightening.
Table of Contents
CHANDLER
ASSET ASSET MANAGEMENT
Strategy
Strategy highlights for the Long -Term portfolio in coming months
• Focus on risk management and optimizing the underlying mix of securities within the portfolio; maintain an up in
quality bias.
• Opportunistically focus on dislocated securities in the Corporate and Asset Backed allocation to enhance the total
return opportunity of the portfolio over the upcoming market cycle.
o Take advantage of wider new issue concessions in the Corporate and Asset Backed sectors to help
differentiate the relative performance of the portfolio.
o Continue to avoid adding exposure to Agency sector at longer maturity points until relative value improves.
Focus on shorter maturity Agency exposure where relative value is reasonable.
Strategy highlights for the Liquidity portfolio in coming months
Focus on upcoming liquidity needs based on the cash flow forecast; ensure maturing securities offset cash flow
needs.
• Opportunistically add longer duration Corporate, Negotiable CD, and Commercial paper beyond the six-month
maturity point to enhance the total return of the strategy.
Table of Contents
CHANDLER
ASSET MANAGEMENT
Comoliance Issues
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
Category
U.S. Treasuries
Federal Agencies
Supranational Obligations
Municipal Securities
Corporate Medium Term Notes
Non- Agency Asset -Backed Securities,
Mortgage -Backed Securities, CMOs
Negotiable Certificates of Deposit
(NCD)
Certificates of Deposit
Banker's Acceptances
Commercial Paper
Mutual Fund & Money Market Mutual
Fund
Local Agency Investment Fund (LAIF)
Orange County Treasurer's Money
Market Commingled Investment Pool
(OCCI P)
Repurchase Agreements
Reverse Repurchase Agreements
Prohibited
Securities Downgrade
Avg Duration
Max Per Holding
Max Per Issuer
Maximum Maturity
Standard
10% minimum; 5 years max maturity
Comment
Complies
20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5
years max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed Complies
as to principal and interest by the US Government, a federal agency, or a US Government -sponsored enterprise
"AA" rated or better by a NRSRO; 30% max; 5 years max maturity; U.S. dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed bythe International Bankfor Reconstruction and Complies
Development ("I BRD"), the International Finance Corporation ("I FC") or the Inter -American Development Bank ("I AD B")
"A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt
Complies
municipal bonds issued byanyofthe50states; 10%max; 5% max issuer; 5 years max maturity
"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 5 years max maturity; Issued by corporations
organized and operatingwithin the U.S. or issued by depository institutions licensed by the U.S. or any state and
Complies
operating within the U.S. with AUM >$500 million
"AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5%max issuer (except U.S.
governmentor its agencies); 5 years max maturity; Mortgage pass -through security, collateralized mortgage
Complies
obligation, mortgage -backed or other pay -through bond, equipment lease -backed certificate, consumer receivable
pass -through certificate, or consumer receivable -backed bond
"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise
approved by the Board of Directors; 30%max; 5% max issuer; 5 years max maturity; Negotiable certificates of
Complies
deposit issued by a nationally or state -chartered bank or state of federal savings and loan association, as defined by
Section 5102 ofthe California Financial Code
5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state -
chartered bank or state or federal savings and loan association, as defined by Section 5102 ofthe California
Complies
Financial Code and having a net operating profit in thetwo most recently completed fiscal years; Collateral must
comply with California Government Code
A-1 rated or highest short term rating by a NRSRO; 40%max; 5% max issuer; 180 days max maturity; Acceptance is
Complies
eligible for purchase by the Federal Reserve System
A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation
organized and operating in the U.S. with assets >$500 million; 40%max; 5%max issuer; 10%max ofthe
Complies
outstanding commercial paper of any single issuer; 270 days max maturity
Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience>
than 5 years; 20% max in Mutual Funds; 10%max per one Mutual Fund; 20% max per issuer on Money Market
Complies
Mutual Funds and are not subject to the 10%stipulation
No more than the statutory maximum maybe invested in LAIF; Not used by investment adviser; Investment of OCSD
funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level
Complies
of review pursuant to the policy
15%max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool;
Investment of OCSID funds in OCCIP would be subject to investigation and due diligence prior to investing and on
Complies
continual basis to a level of review pursuant to the policy
20% max; 102%collateral ization
Complies
5% max, 90 days max maturity
Complies
Mortgage Derivatives, which i ncl ude i nterest-only payments (I Os) and pri nci pa I -only payments (POs); Inverse
Complies
floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits)
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be
OCSD's policy to review the credit situation and make a determination as to whether to sell or retain such securities
in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the
Complies
portfolio will be monitored and reported quarterly to the OCSD General Manager, the
Administration Committee and Board of Directors
Not to exceed 60 months - (80%to 120%of the benchmark) Complies
5% max of the total debt outstanding of any issuer per individual holding Complies
5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Complies
Market Mutual Funds
5 years max maturity Complies*
*The portfolio has eighteen (18) securities with maturities greater than 5 years including four (4) CMOs and sixteen (14) MBS. All securities were inherited from the previous manager
and complied at time of purchase.
Table of Contents
CHANDLER
ASSET MANAGEMENT
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
Category
U.S. Trea s u ri es
Federal Agencies
Supranational Obligations
Municipal Securities
Corporate Medium Term Notes
Non- Agency Asset -Backed Securities,
Mortgage -Backed Securities, CMOs
Negotiable Certificates of Deposit
(NCD)
Certificates of Deposit
Banker's Acceptances
Commercial Paper
Mutual Fund & Money Market Mutual
Fund
Local Agency Investment Fund (LAIF)
Orange County Treasurer's Money
Market Commingled Investment Pool
(OCCI P)
Repurchase Agreements
Reverse Repurchase Agreements
Prohibited
Securities Downgrade
Avg Duration
Max Per Holding
Max Per Issuer
Maximum Maturity
Standard
10% minimum; 1 year max maturity
Comment
Complies
20% max per agency of the U.S. Government, which does not provide the ful I faith and credit of the U.S. government; 1
year max maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed Complies
as to principal and interest by the US Government, a federal agency, or a US Government -sponsored enterprise
"AA" rated or better by a NRSRO; 30% max; 1 year max maturity; U.S. dollar denominated senior unsecured
unsubordinated obligations issued or unconditionally guaranteed bythe International Bankfor Reconstruction and
Complies
Development ("IBIRD"), the International Finance Corporation ("I FC") o r the Inter -American Development Bank ("I ADB")
"A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal
Complies
bonds issued by any ofthe 50 states; 10% max; 5%max issuer; 1 year max maturity
"A" rating category or better by a NRSRO; 30%max; 5% max per issuer; 1 year max maturity; Issued by corporations
organized and operatingwithin the U.S. or issued byclepository institutions licensed bythe U.S. or anystateand
Complies
operati ng withi n the U.S. with AUM >$500 million
"AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S.
government or its agencies); 1 year max maturity; Mortgage pass -through security, collateralized mortgage
Complies
obligation, mortgage -backed or other pay -through bond, equipment lease -backed certificate, consumer receivable pass
through certificate, or consumer receivable -backed bond
"A" rating or better long term debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise
approved by the Board of Directors; 30% max; 5% max issuer; 1 year max maturity; Negotiable certificates of deposit
Complies
issued by a nationally or state -chartered bank or state of federal savings and loan association, as defined by Section
5102 ofthe California Financial Code
5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state -chartered
bank or state or federal savings and loan association, as defined by Section 5102 ofthe California Financial Code and
Complies
having a net operating profit in the two most recently completed fiscal years; Collateral must comply with California
Government Code
A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is
Complies
eligible for purchase by the Federal Reserve System
A-1 rated or better by a NRSRO; "A" longterm debt rating or better by a NRSRO; Issued by a domestic corporation
organized and operating in the U.S. with assets >$500 million; 40%max; 5%maxissuer; 10% max of the outstanding
Complies
commercial paper of any single issuer; 270 days max maturity
Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience >than
5 years; 20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual
Complies
Funds and are not subject to the 10% stipulation
No more than the statutory maximum maybe invested in LAIF; Not used by investment adviser; Investment of OCSD
funds in LAIF shall be subject to investigation and due diligence prior to investing, and on a continual basis to a level
Complies
of review pursuant to the policy
15%max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool;
Investment of OCSD funds in OCCIP would be subject to investigation and due diligence prior to investing and on
Complies
continual basis to a level of review pursuant to the policy
20% max; 102 % col I atera I i zati on
Complies
5% max, 90 days max maturity
Complies
Mortgage Derivatives, which include interest -only payments (IOs) and principal -only payments (POs); Inverse floaters,
Complies
and RE-REMICS (Real Estate Mortgage Investment Conduits)
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall beOCSD's
policy to review the credit situation and make a determination as to whether to sell or retain such securities in the
portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will
Complies
be monitored and reported quarterly to the OCSD General Manager, the
Administration Committee and Board of Directors
Not to exceed 180 days
5% max of the total debt outstanding of any issuer per individual holding
Complies
Complies
5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Complies
Market Mutual Funds
1 year max maturity Complies
Table of Contents
CHANDLER
ASSET MANAGEMENT
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
Category Standard Comment
Treasury Issues
5 years maximum maturity
Complies
Supranational
or better by 1 of 3 NRSROs; 30%maximum; 5% max; 5 years maturity; Includes only: IADB, IBRD, and IFC per
Complies
CAA"
GC
U.S. Agencies
20% max issuer; 5 years maximum maturity
Complies
U.S. Corporate (MTNs)
"A" or better long term rating by 1 of 3 NRSROs; 30%maximum; 5% max issuer; 5 years max maturity
Complies*
Municipal Securities
"A" or higher by 1 of 3 NRSROS; 10%maximum; 5% max issuer; 5 years maximum maturity
Complies
Asset Backed/ CMOs/ Mortgage -backed
AA or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer
Complies
(excluding MBS/govt agency); 5 years max maturity
Negotiable CDs
"A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30%
Complies
maximum; 5% max issuer; 5 years max maturity
CDs/TDS
5% max issuer; 5 years max maturity
Complies
Banker's Acceptances
A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40%maximum; 5% max issuer; 180 days max maturity
Complies
Commercial Paper
A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if long term debt issued; 25% maximum; 5% max
Complies
issuer; 270 days max maturity
Money Market Fund
Highest rating by 2 of 3 NRSROs; 20% maximum; 10%max issuer
Complies
Repurchase Agreements
102% collateral ization
Complies
Reverse Repurchase Agreements 5% maximum, 90 days max maturity
LAI F Not us ed by i nves tment a dvi s er
Avg Duration Not to exceed 60 months - (80%to 120%of the benchmark)
Maximum Maturity 5 years maximum maturity
Complies
Complies
Complies
Complies
*Account holds $2 million face value (cusip 525ESCOY6) and $600,000 face value (cusip 525ESCIB7) of defaulted Lehman Bros Holdings that were purchased by the previous
manager. Complied at time of purchase.
Defaulted Bonds
OC SAN Lehman Exposure - Account #10284
Common Stock -
SLHOPNTA4 Lehman Brothers, Inc Open Position Long Exposure
60,641.49
11/21/2014
57,942.64
0.42
25,621.03
72.7096
NR/NR
0.00
0.00096 Due 09/30/2022
0.0096
57,942.64
0.00%
0.00
(32,221.61)
NR
0.00
57,842.64
25,621.03
72.70%
NR/NR
0.00
TOTAL Common Stock
60,641.49
0.00%
57,842.64
0.00%
0.00
(32,221.61)
NR
0.00
Corporate
525ESCIB7 Lehman Brothers Note -Defaulted
600,000.00
09/19/2008
316,145.76
0.37
2,220.00
6.3096
NR/NR
0.32
0.00096 Due 01/24/2023
0.0096
316,145.76
0.00%
0.00
(313,925.76)
NR
0.00
525ESCOY6 Lehman Brothers Note -Defaulted
2,000,000.00
09/18/2008
1,018,441.83
0.37
7,400.00
21.00%
NR/NR
27.08
0.00096 Due 10/22/2049
0.0096
1,018,441.83
0.0096
0.00
(1,011,041.83)
NR
0.00
1,334,SB7.59
9,620.00
27.30%
NR/NR
20.90
TOTAL Corporate
2,600,000.00
0.00%
2,334,587.59
0.00%
0.00 (2,324,967.59)
NR
0.00
1,392,430.23 35,241.03 100.00% NR/NR 5.71
TOTAL PORTFOLIO 2,660,641.49 MGM 1,392,430.23 0.00% 0.00 (1,357,189.20) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 35,241.03
9
Table of Contents
C3% CHANDLER
ASSET MANAGEMENT
Ratings
Orange County 5anitakian Rlsknck LonigTerm
Sepcemher 30, 2022 ue. June SO, 2022
W.0%
70A%
63.0%
50-0%
40.0%
30-0%
20.0%
10J0%
0.0%
AAA AA A cA NR
■ 04i3Q+22 ■ 06i3CV22
OW30122 69.1% 3k% 203% 40% 6.5%
06130122 69.5% 3;0% 20.5% 40% 6.1%
S�: Wx ri'a jra .vs
nrange founty 5anitakion Rlsknck LlquW
Sept —her 30, 2022 ue_June 30, 2022
70.0%
63 A9f
Min%
d0A%
3UA%
Min%
10 A4f
0.0%
AAA AA A 'A, NR
0 0913CV22 ■ 06130122
09130122 29A% 5M% 9.27E 1.0% 4A%
06/30122 33.1% 61A% 4A% 1.1% 4A%
5h : SSPiN -a+
to
Table of Contents
C3% CHANDLER
ASSET MANAGEMENT
$800,000,000
$700,000,000
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
OC SAN Investment Program
Quarter End Portfolio Value
spa OP��a ✓44 sPa OP�4d °o s�'o60 4;, ✓<, sPa 00 4,-� �'� s�°a 00 4", ✓�0.'o s�0a 00 4;,r <, s�Oa 60 4"d ✓<, s�0a 60 4� ,dVO s�Oa60 -tld ✓4o s�°a
Kp0 V-'v1y1AI's ,S,'S;I6,161616 Ij1�1�5;j9,41s1s 'q 1919-pip10"-1p�1�7�1�1������
HISTORICAL YIELD CURVE
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0 00%
-r - ---------
---------------------------------------------------------------------------------
------------ ---------------------------------------------------
-----------------------------------------------------------------------------
------------------------ -------------------------------------------------------------------
--SEPTEMBER 2022—0—JUNE 2022—*--SEPTEMBER 2021
a' 6' 1P a' S 10 a'O
'%O 7jO yi. yr yr yr yr yr
11
Table of Contents
Orange County Sanitation District Liquid
Account#10282
PORTFOLIO CHARACTERISTICS
Portfolio Summary
As of September 30, 2022
ACCOUNT SUMMARY
TOP ISSUERS
Average Modified Duration
0.28
Beg. Values
End Values
Government of United States
63.3%
as of 8/31/22
as of 9/30/22
Toronto Dominion Holdings
4.6%
Average Coupon
1.01%
Market Value
139,137,845
109,269,117
Royal Bank of Canada
4.6%
Average Purchase YTM
2.01%
Accrued Interest
171418
,
187551
,
Federal Home Loan Bank
4.5%
Total Market Value
139,309,263
109,456,669
Average Market YTM
3.53%
Income Earned
198,175
193,741
Westpac Banking Corp NY
3.7%
Average S&P/Moody Rating
AA+/Aa1
Cont/WD
-30,000,000
First American Govt Obligation
2.9%
Par
140,101,243
110,213,314
MUFG Bank Ltd/NY
2.3%
Average Final Maturity
0.28 yrs
Book Value
139,620,558
109,798,166
United Parcel Service
°
2.2/°
Average Life
0.26 yrs
Cost Value
139,155,066
109,353,707
Total
88.1%
SECTOR ALLOCATION
US Treasury =
Neg CD 15.1%
Corporate E
13.0%
Agency' 5.6%
Money Mkt Fd 12.9%
PERFORMANCE REVIEW
63.3 %
MATURITY DISTRIBUTION
80%
60
40%
20%
0-.25 .25-.5 .5-1 1-1.5 1.5-2 2-2.5 2.5-3 3+
Maturity (Yrs)
CREDIT QUALITY (S&P)
AA (59.6%)
AAA (29.4%)
Annualized
TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS SYRS 10YRS 11/30/2014
Orange County Sanitation District Liquid 0.11% 0.35% 0.38% 0.38% 0.25% 0.61% 1.18% N/A 0.92%
ICE BofA 3-Month US Treasury Bill Index 0.25% 0.46% 0.61% 0.62% 0.34% 0.59% 1.15% N/A 0.85%
Chandler Asset Manaeement - CONFIDENTIAL Paee 1 Execution Time: 10/3/2022 7:52:53 PM
Table of Contents
Orange County Sanitation District Long Term
Account#10268
PORTFOLIO CHARACTERISTICS
Portfolio Summary
As of September 30, 2022
ACCOUNT SUMMARY
TOP ISSUERS
Average Modified Duration
2.41
Beg. Values
End Values
Government of United States
33.4%
as of 8/31/22
as of 9/30/22
Federal National Mortgage Assoc
8.2%
Average Coupon
1.70%
Market Value
708,662,403
697,508,524
Federal Home Loan Mortgage Corp
6.1%
Average Purchase YTM
1.67%
Accrued Interest
2770382
,,
2660393
,,
Federal Home Loan Bank
5.5%
Total Market Value
711,432,785
700,168,917
Average Market YTM
4.42%
Income Earned
995,278
1,003,500
Inter -American Dev Bank
3.8%
Average S&P/Moody Rating
AA/Aa1
Cont/WD
316,446
Intl Bank Recon and Development
2.7%
Par
743,329,104
745,156,450
Hyundai Auto Receivables
1.9%
Average Final Maturity
2.78 yrs
Book Value
743,189,104
744,446,682
John Deere ABS
1.6%
Average Life
2.54 yrs
Cost Value
744,463,916
745,928,650
Total
63.3%
SECTOR ALLOCATION
US Treasury
Corporate
Agency 19.0%
ABS- 12.1%
Supras- 6.5%
CMO' 1.5%
Neg CD 0.9%
Money Mkt Fd 0.2%
MBS 0.0%
PERFORMANCE REVIEW
_ 33.4%
26.4%
MATURITY DISTRIBUTION
35 %
30%
25%
20%
15%
10%
5%
%
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+
Maturity (Yrs)
CREDIT QUALITY (S&P)
AA (60.1%)
A118..,,,,,
B (0.0%)
BBB (0.8%)
NR (3.6%)
.5%)
Annualized
TOTAL RATE OF RETURN
11M
3M
YTD
1YR
2YRS
3YRS
SYRS
10YRS
11/30/2014
Orange County Sanitation District Long Term
-1.63%
-2.01%
-5.78%
-6.38%
-3.28%
-0.70%
0.65%
N/A
0.86%
ICE BofA 1-5 Yr AAA -A US Corp & Govt Index
-1.78%
-2.26%
-6.34%
-6.98%
-3.63%
-0.92%
0.49%
N/A
0.75%
ICE BofA 1-5 Yr US Corp & Govt Index
-1.85%
-2.20%
-6.68%
-7.32%
-3.64%
-0.90%
0.57%
N/A
0.85%
Chandler Asset Manaeement - CONFIDENTIAL Paee 1 Execution Time: 10/3/2022 TS1:28 PM
Table of Contents
Balance
Orange County Sanitation District
Investment Transactions and Balances in the
State of California Local Agency Investment Fund
September 30, 2022
Par Value Book Value Market Value Rate Yield
9/1/2022
$50,760,315
$50,760,315
$50,760,315
1.51
1.51
Deposits:
9/30/2022
30,000,000
30,000,000
30,000,000
1.51
1.51
Total Deposits
30,000,000
30,000,000
30,000,000
1.51
1.51
Quarterly
Interest
Distribution
-
-
-
1.51
1.51
Withdrawals:
9/6/2022
(2,800,000)
(2,800,000)
(2,800,000)
1.51
1.51
9/7/2022
(1,500,000)
(1,500,000)
(1,500,000)
1.51
1.51
9/14/2022
(1,600,000)
(1,600,000)
(1,600,000)
1.51
1.51
9/20/2022
(2,900,000)
(2,900,000)
(2,900,000)
1.51
1.51
9/21/2022
(6,800,000)
(6,800,000)
(6,800,000)
1.51
1.51
9/22/2022
(4,700,000)
(4,700,000)
(4,700,000)
1.51
1.51
9/28/2022
(4,800,000)
(4,800,000)
(4,800,000)
1.51
1.51
Total Withdrawals
(25,100,000)
(25,100,000)
(25,100,000)
1.51
1.51
Balance
9/30/2022
$55,660,315
$55,660,315
$55,660,315
1.51
1.51
Table of Contents
Industry Name
Cash Equivalents
FIRST AMERICAN SHORT TERM FDS
U. S. GOVERNMENT
Cash Equivalents Total
Fixed Income
FINANCE
FIXED INCOME FUNDS OTHER
INDUSTRIAL
PRIVATE PLACEMENTS
SHORT TERM FUNDS
U. S. GOVERNMENT
US AGY - LONG TERM ISSUES
UTILITY
Fixed Income Total
Grand Total
U.S. Bank
Asset Summary - Liquid
As of 09/30/2022
Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
3,225,313.9900
3,225,313.99
3,225,313.99
2.95
-
10,000,000.0000
9,917,672.22
9,959,300.00
9.11
41,627.78
13,225, 313.9900
13,142,986.21
13,184, 613.99
12.07
41, 627.78
5,998,000.0000
6,058,094.18
5,980,066.56
5.47
(78,027.62)
2,500,000.0000
2,479,919.65
2,493,975.00
2.28
14,055.35
2,400,000.0000
2,407,152.00
2,400,000.00
2.20
(7,152.00)
2,255,000.0000
2,259,126.65
2,239,846.40
2.05
(19,280.25)
14, 000, 000.0000
13, 948, 658.28
13, 924,110.00
12.74
(24, 548.28)
60,000,000.0000
59,283,593.76
59,305,200.00
54.28
21,606.24
7,835,000.0000
7,770,236.12
7,756,608.45
7.10
(13,627.67)
2,000,000.0000
2,003,940.00
1,980,080.00
1.81
(23,860.00)
96,988,000.0000
96,210,720.64
96,079,886.41
87.93
(130,834.23)
110,213, 313.9900
109,353,706.85
109, 264, 500.40
100.00
(89, 206.45)
1 of 1
Table of Contents
Industry Name
Cash Equivalents
FIRST AMERICAN SHORT TERM FDS
Cash Equivalents Total
U.S. Bank
Asset Summary - Long -Term
As of 09/30/2022
Shares/Units
1,310,134.1700
Cost Basis Market Value Percent of Total Unrealized Gain/Loss
1,310,134.17 1,310,134.17 0.19
1,310,134.1700 1,310,134.17 1,310,134.17 0.19 -
Fixed Income
CONSUMER DISCRETIONARY
24,554,000.0000
24,578,759.23
23,039,556.24
3.30
(1,539,202.99)
CONSUMER STAPLES
8,070,000.0000
8,060,858.95
7,612,793.10
1.09
(448,065.85)
FINANCE
102,200,000.0000
101,141,271.26
92,446,776.70
13.26
(8,694,494.56)
FOREIGN FIXED INCOME
9,500,000.0000
9,582,015.00
9,114,025.00
1.31
(467,990.00)
HEALTH CARE
4,000,000.0000
3,904,703.05
3,539,920.00
0.51
(364,783.05)
INDUSTRIAL
4,735,000.0000
4,730,811.55
4,609,102.10
0.66
(121,709.45)
INFORMATION TECHNOLOGY
19,922,000.0000
20,678,047.96
19,285,808.86
2.77
(1,392,239.10)
MTG RELATED SECURITY
98,920,460.5800
99,547,151.33
95,380,541.11
13.68
(4,166,610.22)
PRIVATE PLACEMENTS
20,400,000.0000
20,261,550.90
18,514,180.75
2.66
(1,747,370.15)
SHORT TERM FUNDS
6,000,000.0000
6,000,302.58
5,993,400.00
0.86
(6,902.58)
SUPRANATIONAL
50,440,000.0000
50,333,542.85
45,436,211.00
6.52
(4,897,331.85)
U. S. GOVERNMENT
238,253,046.8300
236,237,853.22
220,359,479.57
31.60
(15,878,373.65)
U.S. GOVERNMENT TIPS
12,976,808.0000
12,832,088.09
12,532,741.63
1.80
(299,346.46)
US AGY - LONG TERM ISSUES
140,740,000.0000
142,303,253.25
132,664,402.90
19.03
(9,638,850.35)
UTILITY
5,735,000.0000
5,736,523.40
5,413,782.65
0.78
(322,740.75)
Fixed Income Total
746,446,315.4100
745,928,732.62
695,942,721.61
99.81
(49,986,011.01)
Grand Total
747,756,449.5800
747,238,866.79
697,252,855.78
100.00
(49,986,011.01)
1 of 1
Table of Contents
BNY MELLON
Statement of Assets Held by Asset Classification
Shares/Par Value Asset Descrip
CASH AND SHORT TERM
CASH BALANCE
Total CASH AND SHORT TERM
ACCOUNT TOTALS
Total Market Value Plus Total Accrued Income 250,000.00
Statement of Transactions by Transaction Date
Statement Period 09/01/2022 Through 09/30/2022
Account 300282 Base Currency = USD
OCSD LIBERTY MUTUAL
Accrued Estimated Market
Market Price Market Value Cost Average Cost Income Income Yield
250,000.00 250,000.00 0.00000 0.00 0.00 0.00%
250,000.00 250,000.00 0.00 0.00 0.00%
250,000.00 250,000.00
0.00 0.00 0.00%
Realized
Transaction Date Transaction Description Income Principal Cost Gains/Losses
No Transactions This Period
Cumulative realized capital gain and loss position from 12/31/2021 for securities held in principal of account:
Short Term: 237.61 * Long Term: 0.00 *
* The above gain and loss position does not include transactions where tax cost information is incomplete or unavailable.
The Bank of New York Mellon may utilize subsidiaries and affiliates to provide services and certain products to the Account. Subsidiaries and affiliates may be compensated for their services and products.
The value of securities set forth on this Account Statement are determined by The Bank of New York Mellon for Corporate Trust on the basis of market prices and information obtained by The Bank of New York Mellon from
unaffiliated third parties (including independent pricing vendors) ("third party pricing services"). The Bank of New York Mellon has not verified such market values or information and makes no assurances as to the accuracy or
correctness of such market values or information or that the market values set forth on this Account Statement reflect the value of the securities that can be realized upon the sale of such securities. In addition, the market values
for securities set forth in this Account Statement may differ from the market prices and information for the same securities used by other business units of The Bank of New York Mellon or its subsidiaries or affiliates based upon
market prices and information received from other third party pricing services utilized by such other business units. Corporate Trust does not compare its market values with those used by, or reconcile different market values
used by, other business units of The Bank of New York Mellon or its subsidiaries or its affiliates. The Bank of New York Mellon shall not be liable for any loss, damage or expense incurred as a result of or arising from or
related to the market values or information provided by third party pricing services or the differences in market prices or information provided by other third party pricing services.
Table of Contents
U.S. Bank
Investment Listing - Yield
As of 09/30/2022
Asset Category
CUSIP
Asset Short Name
Yield
Shares/Units Moody's
S&P Rating Price
Cost Basis
Market Value
Cash Equivalents
31846V567
FIRST AM GOVT OB FD CL Z
2.8593%
3,225,313.9900
1.00
3,225,313.99
3,225,313.99
Cash Equivalents
31846V567
FIRST AM GOVT OB FD CL Z
2.8593%
1,310,134.1700
1.00
1,310,134.17
1,310,134.17
Cash Equivalents
912796YR4
U S TREASURY BILL 11/22/22
2.9420%
10,000,000.0000 N/A
N/A
99.59
9,917,672.22
9,959,300.00
Fixed Income
00440EAP2
CHUBB INA HLDGS INC 2.700% 3/13/23
2.7197%
2,000,000.0000 A3
A
99.28
1,937,000.00
1,985,520.00
Fixed Income
00440EAS6
ACE INA HOLDING 3.150% 3/15/25
3.2834%
2,000,000.0000 A3
A
95.94
2,203,740.00
1,918,740.00
Fixed Income
023135BW5
AMAZON COM INC 0.450% 5/12/24
0.4800%
5,490,000.0000 Al
AA
93.74
5,481,984.60
5,146,490.70
Fixed Income
023135CF1
AMAZON COM 3.300% 4/13/27
3.4953%
2,000,000.0000 Al
AA
94.41
1,996,540.00
1,888,240.00
Fixed Income
02582JJT8
AMERICAN EXPRESS 3.390% 5/17/27
3.5040%
6,620,000.0000 N/A
AAA
96.75
6,618,535.66
6,404,651.40
Fixed Income
02665WCJ8
AMERICAN HONDA MTN 3.450% 7/14/23
3.4784%
845,000.0000 A3
A-
99.18
843,538.15
838,104.80
Fixed Income
02665WCQ2
AMERICAN HONDA MTN 3.625% 10/10/23
3.6569%
2,000,000.0000 A3
A-
99.13
1,998,320.00
1,982,540.00
Fixed Income
02665WCZ2
AMERICAN HONDA MTN 2.400% 6/27/24
2.4988%
1,219,000.0000 A3
A-
96.05
1,213,843.63
1,170,800.74
Fixed Income
02665WEA5
AMERICAN HONDA MTN 1.500% 1/13/25
1.6159%
6,000,000.0000 A3
A-
92.83
5,979,632.85
5,569,740.00
Fixed Income
03215PFN4
AMRESCO 3.60934% 6/25/29
3.8691%
116,624.7700 N/A
BBB
93.29
87,577.91
108,794.58
Fixed Income
037833AZ3
APPLE INC 2.500% 2/09/25
2.6188%
3,922,000.0000 AAA
AA+
95.46
4,154,496.16
3,744,058.86
Fixed Income
037833CU2
APPLE INC 2.850% 5/11/24
2.9220%
3,000,000.0000 AAA
AA+
97.54
3,017,760.00
2,926,050.00
Fixed Income
05601XAC3
BMW VEHICLE LEASE 1.100% 3/25/25
1.1427%
2,400,000.0000 N/A
AAA
96.26
2,399,641.20
2,310,288.00
Fixed Income
05602RAD3
BMW VEH OWNER TR 3.210% 8/25/26
3.2987%
2,530,000.0000 AAA
AAA
97.31
2,529,868.44
2,461,993.60
Fixed Income
06051GEU9
BANK OF AMERICA MTN 3.300% 1/11/23
3.3082%
2,000,000.0000 A2
A-
99.75
2,018,300.00
1,995,020.00
Fixed Income
06051GHF9
BANK OF AMERICA 3.550% 3/05/24
3.5782%
6,675,000.0000 A2
A-
99.21
6,770,625.75
6,622,467.75
Fixed Income
06051GHY8
BANK OF AMERICAN MTN 2.015% 2/13/26
2.1981%
2,500,000.0000 A2
A-
91.67
2,583,450.00
2,291,700.00
Fixed Income
06051GJD2
BANK AMER CORP MTN 1.319% 6/19/26
1.4860%
2,250,000.0000 A2
A-
88.76
2,254,432.50
1,997,100.00
Fixed Income
06367WB85
BANK OF MONTREAL MTN 1.850% 5/01/25
2.0108%
7,000,000.0000 A2
A-
92.00
7,226,940.00
6,440,140.00
Fixed Income
06368FAC3
BANK OF MONTREAL MTN 1.250% 9/15/26
1.4620%
3,000,000.0000 A2
A-
85.50
2,994,647.40
2,564,970.00
Fixed Income
06406HCQO
BANK OF NEW YORK MTN 3.950% 11/18/25
4.0617%
1,500,000.0000 Al
A
97.25
1,537,365.00
1,458,750.00
Fixed Income
06406RAM9
BANK OF NY MTN 1.850% 1/27/23
1.8620%
1,585,000.0000 Al
A
99.36
1,589,501.40
1,574,808.45
Fixed Income
084664CZ2
BERKSHIRE HATHAWAY 2.300% 3/15/27
2.5271%
6,875,000.0000 AA2
AA
91.01
6,873,693.75
6,257,075.00
Fixed Income
09247XAL5
BLACKROCK INC 3.500% 3/18/24
3.5510%
1,000,000.0000 AA3
AA-
98.56
1,036,330.00
985,630.00
Fixed Income
09690AAC7
BMW VEHICLE LEASE 0.330% 12/26/24
0.3398%
2,070,000.0000 AAA
N/A
97.13
2,069,786.38
2,010,570.30
Fixed Income
14913R2V8
CATERPILLAR FINL MTN 3.400% 5/13/25
3.5184%
3,485,000.0000 A2
A
96.64
3,480,574.05
3,367,764.60
Fixed Income
14913R3A3
CATERPILLAR FINL MTN 3.600% 8/12/27
3.8130%
3,250,000.0000 A2
A
94.42
3,213,062.50
3,068,487.50
Fixed Income
24422EUM9
JOHN DEERE MTN 3.650% 10/12/23
3.6755%
1,250,000.0000 A2
A
99.31
1,250,237.50
1,241,337.50
Fixed Income
24422EWK1
DEERE JOHN MTN 4.150% 9/15/27
4.2765%
2,000,000.0000 A2
A
97.04
1,972,620.00
1,940,860.00
Fixed Income
3130AOF70
F H L B DEB 3.375% 12/08/23
3.4165%
10,000,000.0000 AAA
AA+
98.78
10,269,043.75
9,878,400.00
Fixed Income
3130A1XJ2
F H L B 2.875% 6/14/24
2.9493%
11,110,000.0000 AAA
AA+
97.48
11,589,031.30
10,830,250.20
Fixed Income
313OA2UW4
F H L B DEB 2.875% 9/13/24
2.9574%
2,500,000.0000 AAA
AA+
97.21
2,635,950.00
2,430,325.00
Fixed Income
313OA4CH3
F H L B DEB 2.375% 3/14/25
2.4856%
5,225,000.0000 AAA
AA+
95.55
5,526,848.25
4,992,435.25
Fixed Income
313383YJ4
F H L B DEB 3.375% 9/08/23
3.4060%
10,000,000.0000 AAA
AA+
99.09
10,211,831.00
9,909,000.00
Fixed Income
313385S80
F H L B DISC NTS 12/12/22
0.0000%
5,000,000.0000 N/A
N/A
99.34
4,966,597.22
4,966,950.00
Fixed Income
3133EKWV4
F F C B DEB 1.850% 7/26/24
1.9362%
5,000,000.0000 AAA
AA+
95.55
5,048,280.00
4,777,450.00
Fixed Income
3133TCE95
F H L M C MLTCL MTG 3.744% 8/15/32
3.8662%
3,020.2000 N/A
N/A
96.84
3,023.37
2,924.72
Fixed Income
31348SWZ3
F H L M C #786064 2.262% 1/01/28
2.3068%
1,126.4600 N/A
N/A
98.06
1,099.03
1,104.61
Fixed Income
3135GO3U5
F N M A DEB 0.625% 4/22/25
0.6858%
14,000,000.0000 AAA
AA+
91.13
13,996,711.60
12,757,920.00
1 of 5
Table of Contents
U.S. Bank
Investment Listing - Yield
As of 09/30/2022
Asset Category
CUSIP
Asset Short Name
Yield
Shares/Units Moody's
S&P Rating
Price
Cost Basis
Market Value
Fixed Income
3135GO4Z3
F N M A 0.500% 6/17/25
0.5532%
9,905,000.0000 AAA
AA+
90.38
9,884,496.65
8,952,238.05
Fixed Income
3135GO5G4
FNMA 0.250% 7/10/23
0.2577%
6,775,000.0000 AAA
AA+
97.01
6,760,433.75
6,572,224.25
Fixed Income
3135GO5X7
FNMA 0.375% 8/25/25
0.4194%
7,945,000.0000 AAA
AA+
89.42
7,907,817.40
7,104,021.75
Fixed Income
3135GO6G3
FNMA 0.500% 11/07/25
0.5615%
8,255,000.0000 AAA
AA+
89.05
8,225,447.10
7,351,407.70
Fixed Income
3135GOV34
FNMA 2.500% 2/05/24
2.5622%
5,000,000.0000 AAA
AA+
97.57
4,980,850.00
4,878,650.00
Fixed Income
3135GOX24
FNMA 1.625% 1/07/25
1.7224%
10,000,000.0000 AAA
AA+
94.35
10,157,936.40
9,434,600.00
Fixed Income
31371 NUC7
F N M A #257179 4.500% 4/01/28
4.6334%
5,700.1400 N/A
N/A
97.12
6,028.47
5,535.98
Fixed Income
31376KT22
F N M A #357969 5.000% 9/01/35
4.9771 %
43,750.0600 N/A
N/A
100.46
47,031.31
43,951.31
Fixed Income
3137BFE98
F H L B GTD REMIC 3.171% 10/25/24
3.2624%
5,000,000.0000 N/A
N/A
97.20
5,378,515.62
4,859,900.00
Fixed Income
313713SRE5
F H L M C MLTCL MTG 3.120% 9/25/26
3.2938%
5,000,000.0000 N/A
AAA
94.72
5,214,062.50
4,736,100.00
Fixed Income
3137EAEN5
F H L M C 2.750% 6/19/23
2.7802%
10,000,000.0000 AAA
AA+
98.91
9,956,500.00
9,891,300.00
Fixed Income
3137EAEPO
F H L M C 1.500% 2/12/25
1.6006%
12,335,000.0000 AAA
AA+
93.72
12,510,182.05
11,559,868.60
Fixed Income
3137EAES4
F H L M C M T N 0.250% 6/26/23
0.2572%
1,250,000.0000 AAA
AA+
97.19
1,214,137.50
1,214,850.00
Fixed Income
3137EAEU9
F H L M C M T N 0.375% 7/21/25
0.4180%
5,030,000.0000 AAA
AA+
89.72
5,004,950.60
4,512,664.50
Fixed Income
3137EAEX3
F H L M C M T N 0.375% 9/23/25
0.4205%
7,660,000.0000 AAA
AA+
89.19
7,636,943.40
6,831,647.60
Fixed Income
3138EG6F6
F N M A #AL0869 4.500% 6/01/29
4.6210%
3,944.1100 N/A
N/A
97.38
4,171.29
3,840.85
Fixed Income
31394JY35
F H L M C MLTCL MT 9.50001% 9/25/43
9.3565%
418,226.0400 N/A
N/A
101.53
473,640.99
424,641.63
Fixed Income
31397QREO
F N M A GTD REMIC 2.472% 2/25/41
3.7800%
79,124.4500 N/A
N/A
99.58
79,099.75
78,790.54
Fixed Income
31403DJZ3
F N M A #745580 5.000% 6/01/36
4.9611 %
44,350.7200 N/A
N/A
100.78
47,677.02
44,698.43
Fixed Income
31403GXF4
F N M A #748678 5.000% 10/01/33
5.1148%
750.3700 N/A
N/A
97.76
806.64
733.53
Fixed Income
31406PQY8
F N M A #815971 5.000% 3/01/35
4.9612%
66,214.9600 N/A
N/A
100.78
71,181.09
66,733.42
Fixed Income
31406XWT5
F N M A #823358 1.948% 2/01/35
1.9410%
18,758.8400 N/A
N/A
100.36
18,612.29
18,826.37
Fixed Income
31407BXH7
F N M A #826080 5.000% 7/01/35
4.9612%
8,702.1500 N/A
N/A
100.78
9,354.79
8,770.20
Fixed Income
3141OF4V4
F N M A #888336 5.000% 7/01/36
4.9611%
73,186.4400 N/A
N/A
100.79
78,675.44
73,760.95
Fixed Income
31417YAY3
F N M A #MA0022 4.500% 4/01/29
4.6212%
6,667.6900 N/A
N/A
97.38
7,051.73
6,492.86
Fixed Income
36225CAZ9
G N M A I I #080023 1.750% 12/20/26
1.7641%
7,177.1000 N/A
N/A
99.20
7,295.66
7,119.54
Fixed Income
36225CC20
G N M A I I #080088 3.000% 6/20/27
3.0375%
5,090.3300 N/A
N/A
98.77
5,201.68
5,027.57
Fixed Income
36225CN28
G N M A I I #080408 2.875% 5/20/30
2.9103%
26,109.6000 N/A
N/A
98.79
25,844.41
25,793.15
Fixed Income
36225CNM4
G N M A I I #080395 2.875% 4/20/30
2.9106%
3,046.8300 N/A
N/A
98.78
3,019.20
3,009.57
Fixed Income
36225DCB8
G N M A I I #080965 1.625% 7/20/34
1.6555%
20,771.8500 N/A
N/A
98.16
20,758.87
20,389.65
Fixed Income
362554AC1
GM FIN CONS AUTO 0.680% 9/16/26
0.7217%
1,705,000.0000 AAA
AAA
94.22
1,704,956.52
1,606,382.80
Fixed Income
362585AC5
GM FIN CONS ALIT 3.100% 2/16/27
3.1991%
2,330,000.0000 AAA
AAA
96.90
2,329,513.03
2,257,793.30
Fixed Income
36265MAC9
GM FIN AUTO LSNG TR 1.900% 3/20/25
1.9684%
5,020,000.0000 AAA
N/A
96.53
5,019,956.83
4,845,555.00
Fixed Income
36266FAC3
GM FIN AUTO LSNG 3.420% 6/20/25
3.4876%
3,035,000.0000 N/A
AAA
98.06
3,034,683.45
2,976,212.05
Fixed Income
380146AC4
GM FIN CONS AUTO 1.260% 11/16/26
1.3249%
1,590,000.0000 N/A
AAA
95.11
1,589,861.83
1,512,169.50
Fixed Income
40139LBD4
GUARDIAN LIFE MTN 1.250% 5/13/26
1.4332%
3,250,000.0000 AA1
AA+
87.22
3,124,290.00
2,834,487.50
Fixed Income
43813GAC5
HONDAAUTO 0.270% 4/21/25
0.2782%
1,399,041.8300 AAA
N/A
97.07
1,399,016.23
1,357,993.94
Fixed Income
43813KAC6
HONDA AUTO 0.370% 10/18/24
0.3783%
2,133,347.3100 N/A
AAA
97.81
2,133,033.93
2,086,563.00
Fixed Income
43815BAC4
HONDA AUTO REC OWN 1.880% 5/15/26
1.9789%
3,930,000.0000 AAA
AAA
95.00
3,929,408.93
3,733,539.30
Fixed Income
43815GAC3
HONDA AUTO REC 0.880% 1/21/26
0.9304%
2,290,000.0000 AAA
N/A
94.58
2,289,517.27
2,165,973.60
Fixed Income
438516CBO
HONEYWELL 1.350% 6/01/25
1.4668%
5,000,000.0000 A2
A
92.04
5,119,000.00
4,601,900.00
Fixed Income
44891VAC5
HYUNDAI AUTO LEASE 0.330% 6/17/24
0.3383%
4,155,000.0000 AAA
AAA
97.55
4,154,376.75
4,053,077.85
2of5
Table of Contents
U.S. Bank
Investment Listing - Yield
As of 09/30/2022
Asset Category
CUSIP
Asset Short Name
Yield
Shares/Units Moody's
S&P Rating Price
Cost Basis
Market Value
Fixed Income
44891WAC3
HYUNDAI AUTO LEASE 1.160% 1/15/25
1.2051%
2,895,000.0000 AAA
AAA
96.26
2,894,936.02
2,786,582.25
Fixed Income
448977ADO
HYUNDAI AUTO REC 2.220% 10/15/26
2.3149%
4,300,000.0000 N/A
AAA
95.90
4,299,834.45
4,123,657.00
Fixed Income
44933LAC7
HYUNDAI AUTO REC 0.380% 9/15/25
0.3931%
2,100,000.0000 N/A
AAA
96.66
2,099,779.08
2,029,776.00
Fixed Income
44934KAC8
HTUNDAI AUTO REC TR 0.380% 1/15/26
0.3988%
6,040,000.0000 N/A
AAA
95.30
6,038,666.97
5,755,878.40
Fixed Income
44935FAD6
HYUNDAI AUTO REC TR 0.740% 5/15/26
0.7844%
1,600,000.0000 N/A
AAA
94.34
1,599,642.88
1,509,392.00
Fixed Income
45814OBD1
INTEL CORP 2.875% 5/11/24
2.9505%
5,000,000.0000 Al
A+
97.44
5,025,900.00
4,872,100.00
Fixed Income
4581XODN5
INTER AMER BK M T N 0.625% 7/15/25
0.6928%
5,050,000.0000 AAA
AAA
90.21
5,071,967.50
4,555,807.00
Fixed Income
4581XODV7
INTER AMER BK M T N 0.875% 4/20/26
0.9872%
13,370,000.0000 AAA
AAA
88.63
13,308,765.40
11,849,964.70
Fixed Income
4581XODZ8
INTER AMER BK M T N 0.500% 9/23/24
0.5387%
10,775,000.0000 AAA
AAA
92.82
10,767,026.50
10,001,678.25
Fixed Income
459058JBO
INTL BK M T N 0.626% 4/22/25
0.6877%
6,245,000.0000 AAA
AAA
91.03
6,220,831.85
5,684,761.05
Fixed Income
459058JL8
INTL BK M T N 0.500% 10/28/25
0.5621%
15,000,000.0000 AAA
AAA
88.96
14,964,951.60
13,344,000.00
Fixed Income
46625HJH4
JPMORGAN CHASE CO 3.200% 1/25/23
3.2103%
2,000,000.0000 Al
A-
99.68
2,042,640.00
1,993,600.00
Fixed Income
46647PAUO
JPMORGAN CHASE CO 3.797% 7/23/24
3.8496%
2,500,000.0000 Al
A-
98.63
2,632,175.00
2,465,825.00
Fixed Income
46647PBH8
JPMORGAN CHASE CO 2.005% 3/13/26
2.1893%
3,500,000.0000 Al
A-
91.58
3,602,345.00
3,205,300.00
Fixed Income
46647PCBO
JPMORGAN CHASE CO SR 1.578% 4/22/27
1.8278%
5,000,000.0000 Al
A-
86.33
4,498,450.00
4,316,550.00
Fixed Income
47787JAC2
JOHN DEERE OWNER 2.320% 9/15/26
2.4277%
3,010,000.0000 AAA
N/A
95.57
3,009,334.19
2,876,506.50
Fixed Income
47787NAC3
JOHN DEERE OWNER 0.510% 11/15/24
0.5202%
735,636.5600 AAA
N/A
98.04
735,524.45
721,203.37
Fixed Income
47788UAC6
JOHN DEERE OWNER 0.360% 9/15/25
0.3747%
2,300,000.0000 AAA
N/A
96.09
2,299,557.94
2,209,955.00
Fixed Income
47789QAC4
JOHN DEERE OWN 0.520% 3/16/26
0.5504%
2,820,000.0000 AAA
N/A
94.48
2,819,748.46
2,664,195.00
Fixed Income
47800AAC4
JOHN DEERE OWNR TR 3.740% 2/16/27
3.8309%
3,140,000.0000 AAA
N/A
97.63
3,139,700.13
3,065,456.40
Fixed Income
525ESCOY6
LEHMAN BIRTH HLD ESC
0.0000%
2,000,000.0000
-
1,016,889.29
-
Fixed Income
525ESCIB7
LEHMAN BIRTH MTN ES 0.00001% 1/24/13
0.0027%
600,000.0000 N/A
N/A
0.37
315,678.37
2,220.00
Fixed Income
55380TXV7
MUFG BANK LTD C D 0.300% 10/31/22
0.3007%
2,500,000.0000
99.76
2,479,919.65
2,493,975.00
Fixed Income
58769KAD6
MERCEDES BENZ AUTO 0.400% 11/15/24
0.4144%
3,315,000.0000 N/A
AAA
96.52
3,314,749.72
3,199,671.15
Fixed Income
58989V2D5
MET TOWER MTN 1.250% 9/14/26
1.4533%
3,745,000.0000 AA3
AA-
86.01
3,741,554.60
3,221,111.95
Fixed Income
59217GEE5
MET LIFE GLOB MTN 1.950% 1/13/23
1.9632%
2,255,000.0000 AA3
AA-
99.33
2,259,126.65
2,239,846.40
Fixed Income
59217GER6
MET LIFE GLOB MTN 1.875% 1/11/27
2.1478%
5,920,000.0000 AA3
AA-
87.30
5,913,251.20
5,168,041.60
Fixed Income
61744YAN8
MORGAN STANLEY MTN 3.125% 1/23/23
3.1353%
1,998,000.0000 Al
A-
99.67
1,997,154.18
1,991,446.56
Fixed Income
61747YEA9
MORGAN STANLEY 0.790% 5/30/25
0.8583%
8,885,000.0000 Al
A-
92.04
8,889,710.25
8,177,754.00
Fixed Income
65479JAD5
NISSAN AUTO 1.930% 7/15/24
1.9373%
927,926.1200 AAA
AAA
99.62
927,877.13
924,427.84
Fixed Income
668151-2J7
NORTHWESTERN MTN 4.000% 7/01/25
4.1067%
7,485,000.0000 AAA
AA+
97.40
7,482,455.10
7,290,539.70
Fixed Income
69353RFL7
PNC BANK NA MTN 3.500% 6/08/23
3.5201%
5,000,000.0000 A2
A
99.43
4,993,318.05
4,971,500.00
Fixed Income
747525AFO
QUALCOMM INC 3.450% 5/20/25
3.5642%
8,000,000.0000 A2
A
96.80
8,479,891.80
7,743,600.00
Fixed Income
78012U3M5
ROYAL BK CDA N Y C D 1.350% 2/14/23
1.3635%
3,000,000.0000
99.01
3,000,000.00
2,970,270.00
Fixed Income
78012UW43
ROYAL BK OF C D 0.270% 10/20/22
0.2704%
2,000,000.0000
99.84
1,986,927.04
1,996,860.00
Fixed Income
78013XZU5
ROYAL BANK OF MTN 2.550% 7/16/24
2.6593%
6,500,000.0000 Al
A
95.89
6,581,445.00
6,232,915.00
Fixed Income
780151<71-11
ROYAL BANK OF MTN 1.150% 6/10/25
1.2744%
4,000,000.0000 Al
A
90.24
4,013,620.00
3,609,520.00
Fixed Income
78445JAA5
S L M A 2.71382% 4/25/23
2.7355%
8,482.4900 B1
B-
99.21
8,448.07
8,415.31
Fixed Income
79466LAG9
SALESFORCE COM INC 0.625% 7/15/24
0.6705%
1,350,000.0000 A2
A+
93.21
1,349,311.50
1,258,348.50
Fixed Income
808513AT2
CHARLES SCHWAB CORP 2.650% 1/25/23
2.6600%
4,000,000.0000 A2
A
99.62
3,987,840.00
3,984,920.00
Fixed Income
808513BN4
SCHWAB CHARLES 0.750% 3/18/24
0.7932%
2,785,000.0000 A2
A
94.55
2,783,607.50
2,633,161.80
Fixed Income
808513BYO
CHARLES SCHWAB CORP 2.450% 3/03/27
2.7301%
2,325,000.0000 A2
A
89.74
2,322,489.00
2,086,455.00
3of5
Table of Contents
U.S. Bank
Investment Listing - Yield
As of 09/30/2022
Asset Category
CUSIP
Asset Short Name
Yield
Shares/Units Moody's
S&P Rating Price
Cost Basis
Market Value
Fixed Income
86959RTWO
SVENSKA C D 0.255% 10/14/22
0.2553%
6,000,000.0000
99.89
6,000,302.58
5,993,400.00
Fixed Income
89114QCA4
TORONTO DOMINION
MTN 2.650% 6/12/24
2.7594%
3,000,000.0000 Al
A
96.04
3,000,570.00
2,881,110.00
Fixed Income
89114TZN5
TORONTO DOMINION
MTN 1.950% 1/12/27
2.2413%
2,000,000.0000 Al
A
87.00
1,984,582.40
1,740,040.00
Fixed Income
89114TZT2
TORONTO DOMINION
MTN 2.800% 3/10/27
3.1076%
5,000,000.0000 Al
A
90.10
4,960,350.00
4,505,050.00
Fixed Income
89114WJB2
TORONTO DOMINION
C D 0.270% 10/20/22
0.2704%
2,000,000.0000
99.84
1,987,255.53
1,996,840.00
Fixed Income
89114WW68
TORONTO DOMINION
C D 2.680% 4/28/23
2.7085%
3,000,000.0000
98.95
3,000,000.00
2,968,380.00
Fixed Income
89236TJK2
TOYOTA MTR CR MTN 1.125% 6/18/26
1.2861%
7,285,000.0000 Al
A+
87.48
7,281,794.60
6,372,553.75
Fixed Income
89236TJZ9
TOYOTA MOTOR MTN 3.050% 3/22/27
3.3121%
2,000,000.0000 Al
A+
92.09
1,945,900.00
1,841,740.00
Fixed Income
89237VAB5
TOYOTA AUTO RECV
0.440% 10/15/24
0.4474%
1,511,729.9900 AAA
AAA
98.35
1,511,613.60
1,486,756.21
Fixed Income
89238LAC4
TOYOTA LEASE OWNER
1.960% 2/20/25
2.0338%
6,125,000.0000 N/A
AAA
96.37
6,124,035.93
5,902,785.00
Fixed Income
89239CAC3
TOYOTA LEASE OWNER
0.420% 10/21/24
0.4363%
3,185,000.0000 AAA
N/A
96.27
3,184,957.00
3,066,167.65
Fixed Income
90331HPL1
US BANK NA MTN
2.050% 1/21/25
2.1774%
7,270,000.0000 Al
AA-
94.15
7,254,514.90
6,844,486.90
Fixed Income
911312AQ9
UNITED PARCEL SVC
2.450% 10/01/22
2.4500%
2,400,000.0000 WR
N/R
1.00
2,407,152.00
2,400,000.00
Fixed Income
9128283J7
U S TREASURY NT
2.125% 11/30/24
2.2231%
16,500,000.0000 AAA
N/A
95.59
16,783,886.72
15,771,690.00
Fixed Income
912828U57
U S TREASURY NT
2.125% 11/30/23
2.1777%
4,000,000.0000 AAA
N/A
97.58
3,937,343.74
3,903,120.00
Fixed Income
912828V80
U S TREASURY NT
2.250% 1/31/24
2.3116%
7,500,000.0000 AAA
97.34
7,491,503.91
7,300,200.00
Fixed Income
912828W48
U S TREASURY NT
2.125% 2/29/24
2.1907%
10,000,000.0000 AAA
N/A
97.00
9,911,718.75
9,700,000.00
Fixed Income
912828WJ5
U S TREASURY NT
2.500% 5/15/24
2.5738%
7,000,000.0000 AAA
N/A
97.13
7,193,046.88
6,799,310.00
Fixed Income
912828W UO
U S TREASURY I P S
0.125% 7/15/24
0.1294%
12,976,808.0000 AAA
N/A
96.58
12,832,088.09
12,532,741.63
Fixed Income
912828XX3
U S TREASURY NT
2.000% 6/30/24
2.0800%
5,000,000.0000 AAA
N/A
96.16
5,028,710.94
4,807,800.00
Fixed Income
912828YH7
U S TREASURY NT
1.500% 9/30/24
1.5823%
14,000,000.0000 AAA
N/A
94.80
13,859,296.88
13,272,140.00
Fixed Income
912828Z78
U S TREASURY NT
1.500% 1/31/27
1.6733%
18,500,000.0000 AAA
N/A
89.64
17,870,410.15
16,583,585.00
Fixed Income
912828ZL7
U S TREASURY NT
0.375% 4/30/25
0.4140%
12,000,000.0000 AAA
N/A
90.58
11,998,515.63
10,869,840.00
Fixed Income
91282CAM3
U S TREASURY NT
0.250% 9/30/25
0.2813%
6,500,000.0000 AAA
N/A
88.88
6,477,656.25
5,776,875.00
Fixed Income
91282CBA8
U S TREASURY NT
0.125% 12/15/23
0.1314%
1,500,000.0000 AAA
N/A
95.16
1,498,007.81
1,427,340.00
Fixed Income
91282CBC4
U S TREASURY NT
0.375% 12/31/25
0.4241%
10,000,000.0000 AAA
N/A
88.43
9,943,320.32
8,842,600.00
Fixed Income
91282CBG5
U S TREASURY NT
0.125% 1/31/23
0.1265%
60,000,000.0000 AAA
N/A
98.84
59,283,593.76
59,305,200.00
Fixed Income
91282CBH3
U S TREASURY NT
0.375% 1/31/26
0.4257%
18,000,000.0000 AAA
N/A
88.09
17,781,875.00
15,855,480.00
Fixed Income
91282CBT7
U S TREASURY NT
0.750% 3/31/26
0.8447%
10,000,000.0000 AAA
N/A
88.79
9,943,359.37
8,879,300.00
Fixed Income
91282CCF6
U S TREASURY NT
0.750% 5/31/26
0.8493%
7,500,000.0000 AAA
N/A
88.31
7,443,750.00
6,623,475.00
Fixed Income
91282CCW9
U S TREASURY NT
0.750% 8/31/26
0.8552%
8,000,000.0000 AAA
N/A
87.70
7,874,375.01
7,015,920.00
Fixed Income
91282CCX7
U S TREASURY NT
0.375% 9/15/24
0.4042%
10,500,000.0000 AAA
N/A
92.77
10,377,363.28
9,740,850.00
Fixed Income
91282CDG3
U S TREASURY NT
1.125% 10/31/26
1.2689%
19,250,000.0000 N/A
N/A
88.66
19,119,013.68
17,067,050.00
Fixed Income
91282CDR9
U S TREASURY NT
0.750% 12/31/23
0.7834%
5,000,000.0000 AAA
N/A
95.73
5,000,195.31
4,786,550.00
Fixed Income
91282CDZ1
U S TREASURY NT
1.500% 2/15/25
1.6002%
5,000,000.0000 AAA
N/A
93.74
4,812,890.63
4,686,900.00
Fixed Income
91282CEN7
U S TREASURY NT
2.750% 4/30/27
2.9140%
17,000,000.0000 AAA
N/A
94.37
16,417,148.43
16,043,070.00
Fixed Income
91282CEW7
U S TREASURY NT
3.250% 6/30/27
3.3722%
20,500,000.0000 AAA
N/A
96.38
20,645,273.45
19,756,875.00
Fixed Income
91282CFE6
U S TREASURY NT
3.125% 8/15/25
3.2240%
5,000,000.0000 AAA
N/A
96.93
4,826,171.88
4,846,500.00
Fixed Income
91324PEC2
UNITEDHEALTH 1.150% 5/15/26
1.2995%
4,000,000.0000 A3
A+
88.50
3,904,703.05
3,539,920.00
Fixed Income
92348KAV5
VERIZON MASTER TR
3.720% 7/20/27
3.7569%
2,750,000.0000 N/A
AAA
99.02
2,749,879.00
2,723,022.50
Fixed Income
927804FN9
VIRGINIA ELEC PWR
2.750% 3/15/23
2.7777%
2,000,000.0000 A2
BBB+
99.00
2,003,940.00
1,980,080.00
Fixed Income
927804GH1
VIRGINIA ELEC PWR CO 3.750% 5/15/27
3.9725%
5,735,000.0000 A2
BBB+
94.40
5,736,523.40
5,413,782.65
4of5
Table of Contents
U.S. Bank
Investment Listing - Yield
As of 09/30/2022
Asset Category
CUSIP
Asset Short Name
Yield
Shares/Units Moody's
S&P Rating Price Cost Basis
Market Value
Fixed Income
931142ERO
WALMART INC
1.050% 9/17/26
1.2034%
1,725,000.0000 AA2
AA 87.26 1,721,739.75
1,505,148.75
Fixed Income
931142EX7
WALMART INC
3.950% 9/09/27
4.0687%
4,995,000.0000 AA2
AA 97.08 4,989,807.70
4,849,295.85
Fixed Income
96130ALA4
WESTPAC BKG C D
0.300% 10/26/22
0.3006%
4,000,000.0000
99.79 3,974,475.71
3,991,760.00
Total Consolidated
806.517.356.18
61118 i&l
Table of Contents
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2022
CUSIP
Asset Short Name
Price Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
Cash Equivalents
31846V567
FIRST AM GOVT OB FD CL Z
1.00
3,225,313.9900
3,225,313.99
3,225,313.99
0.40
31846V567
FIRST AM GOVT OB FD CL Z
1.00
1,310,134.1700
1,310,134.17
1,310,134.17
0.16
-
912796YR4
U S TREASURY BILL 11/22/22
99.59
10,000,000.0000
9,917,672.22
9,959,300.00
1.23
41,627.78
Cash Equivalents Total
14,535,448.1600
14,453,120.38
14,494,748.16
1.80
41,627.78
Fixed Income
00440EAS6
ACE INA HOLDING 3.150% 3/15/25
95.94
2,000,000.0000
2,203,740.00
1,918,740.00
0.24
(285,000.00)
023135CF1
AMAZON COM 3.300% 4/13/27
94.41
2,000,000.0000
1,996,540.00
1,888,240.00
0.23
(108,300.00)
023135BW5
AMAZON COM INC 0.450% 5/12/24
93.74
5,490,000.0000
5,481,984.60
5,146,490.70
0.64
(335,493.90)
02582JJT8
AMERICAN EXPRESS 3.390% 5/17/27
96.75
6,620,000.0000
6,618,535.66
6,404,651.40
0.79
(213,884.26)
02665WEA5
AMERICAN HONDA MTN 1.500% 1/13/25
92.83
6,000,000.0000
5,979,632.85
5,569,740.00
0.69
(409,892.85)
02665WCZ2
AMERICAN HONDA MTN 2.400% 6/27/24
96.05
1,219,000.0000
1,213,843.63
1,170,800.74
0.15
(43,042.89)
02665WCJ8
AMERICAN HONDA MTN 3.450% 7/14/23
99.18
845,000.0000
843,538.15
838,104.80
0.10
(5,433.35)
02665WCQ2
AMERICAN HONDA MTN 3.625% 10/10/23
99.13
2,000,000.0000
1,998,320.00
1,982,540.00
0.25
(15,780.00)
03215PFN4
AMRESCO 3.60934% 6/25/29
93.29
116,624.7700
87,577.91
108,794.58
0.01
21,216.67
037833AZ3
APPLE INC 2.500% 2/09/25
95.46
3,922,000.0000
4,154,496.16
3,744,058.86
0.46
(410,437.30)
037833CU2
APPLE INC 2.850% 5/11/24
97.54
3,000,000.0000
3,017,760.00
2,926,050.00
0.36
(91,710.00)
06051GJD2
BANK AMER CORP MTN 1.319% 6/19/26
88.76
2,250,000.0000
2,254,432.50
1,997,100.00
0.25
(257,332.50)
06051GHF9
BANK OF AMERICA 3.550% 3/05/24
99.21
6,675,000.0000
6,770,625.75
6,622,467.75
0.82
(148,158.00)
06051GEU9
BANK OF AMERICA MTN 3.300% 1/11/23
99.75
2,000,000.0000
2,018,300.00
1,995,020.00
0.25
(23,280.00)
06051GHY8
BANK OF AMERICAN MTN 2.015% 2/13/26
91.67
2,500,000.0000
2,583,450.00
2,291,700.00
0.28
(291,750.00)
06368FAC3
BANK OF MONTREAL MTN 1.250% 9/15/26
85.50
3,000,000.0000
2,994,647.40
2,564,970.00
0.32
(429,677.40)
06367WB85
BANK OF MONTREAL MTN 1.850% 5/01/25
92.00
7,000,000.0000
7,226,940.00
6,440,140.00
0.80
(786,800.00)
06406HCQO
BANK OF NEW YORK MTN 3.950% 11/18/25
97.25
1,500,000.0000
1,537,365.00
1,458,750.00
0.18
(78,615.00)
06406RAM9
BANK OF NY MTN 1.850% 1/27/23
99.36
1,585,000.0000
1,589,501.40
1,574,808.45
0.20
(14,692.95)
084664CZ2
BERKSHIRE HATHAWAY 2.300% 3/15/27
91.01
6,875,000.0000
6,873,693.75
6,257,075.00
0.78
(616,618.75)
09247XAL5
BLACKROCK INC 3.500% 3/18/24
98.56
1,000,000.0000
1,036,330.00
985,630.00
0.12
(50,700.00)
05602RAD3
BMW VEH OWNER TR 3.210% 8/25/26
97.31
2,530,000.0000
2,529,868.44
2,461,993.60
0.31
(67,874.84)
09690AAC7
BMW VEHICLE LEASE 0.330% 12/26/24
97.13
2,070,000.0000
2,069,786.38
2,010,570.30
0.25
(59,216.08)
05601XAC3
BMW VEHICLE LEASE 1.100% 3/25/25
96.26
2,400,000.0000
2,399,641.20
2,310,288.00
0.29
(89,353.20)
14913R2V8
CATERPILLAR FINL MTN 3.400% 5/13/25
96.64
3,485,000.0000
3,480,574.05
3,367,764.60
0.42
(112,809.45)
14913R3A3
CATERPILLAR FINL MTN 3.600% 8/12/27
94.42
3,250,000.0000
3,213,062.50
3,068,487.50
0.38
(144,575.00)
808513BYO
CHARLES SCHWAB CORP 2.450% 3/03/27
89.74
2,325,000.0000
2,322,489.00
2,086,455.00
0.26
(236,034.00)
808513AT2
CHARLES SCHWAB CORP 2.650% 1/25/23
99.62
4,000,000.0000
3,987,840.00
3,984,920.00
0.49
(2,920.00)
00440EAP2
CHUBB INA HLDGS INC 2.700% 3/13/23
99.28
2,000,000.0000
1,937,000.00
1,985,520.00
0.25
48,520.00
24422EWK1
DEERE JOHN MTN 4.150% 9/15/27
97.04
2,000,000.0000
1,972,620.00
1,940,860.00
0.24
(31,760.00)
3133EKWV4
F F C B DEB 1.850% 7/26/24
95.55
5,000,000.0000
5,048,280.00
4,777,450.00
0.59
(270,830.00)
3130A1XJ2
F H L B 2.875% 6/14/24
97.48
11,110,000.0000
11,589,031.30
10,830,250.20
1.34
(758,781.10)
3130A4CH3
F H L B DEB 2.375% 3/14/25
95.55
5,225,000.0000
5,526,848.25
4,992,435.25
0.62
(534,413.00)
3130A2UW4
F H L B DEB 2.875% 9/13/24
97.21
2,500,000.0000
2,635,950.00
2,430,325.00
0.30
(205,625.00)
313383YJ4
F H L B DEB 3.375% 9/08/23
99.09
10,000,000.0000
10,211,831.00
9,909,000.00
1.23
(302,831.00)
1 of 5
Table of Contents
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2022
CUSIP
Asset Short Name
Price Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
3130AOF70
F H L B DEB 3.375% 12/08/23
98.78
10,000,000.0000
10,269,043.75
9,878,400.00
1.22
(390,643.75)
313385S80
F H L B DISC NTS 12/12/22
99.34
5,000,000.0000
4,966,597.22
4,966,950.00
0.62
352.78
3137BFE98
F H L B GTD REMIC 3.171% 10/25/24
97.20
5,000,000.0000
5,378,515.62
4,859,900.00
0.60
(518,615.62)
3137EAEPO
F H L M C 1.500% 2/12/25
93.72
12,335,000.0000
12,510,182.05
11,559,868.60
1.43
(950,313.45)
3137EAEN5
F H L M C 2.750% 6/19/23
98.91
10,000,000.0000
9,956,500.00
9,891,300.00
1.23
(65,200.00)
3137EAES4
F H L M C M T N 0.250% 6/26/23
97.19
1,250,000.0000
1,214,137.50
1,214,850.00
0.15
712.50
3137EAEU9
F H L M C M T N 0.375% 7/21/25
89.72
5,030,000.0000
5,004,950.60
4,512,664.50
0.56
(492,286.10)
3137EAEX3
F H L M C M T N 0.375% 9/23/25
89.19
7,660,000.0000
7,636,943.40
6,831,647.60
0.85
(805,295.80)
31348SW Z3
F H L M C #786064 2.262% 1 /01 /28
98.06
1,126.4600
1,099.03
1,104.61
0.00
5.58
31394JY35
F H L M C MLTCL MT 9.50001 % 9/25/43
101.53
418,226.0400
473,640.99
424,641.63
0.05
(48,999.36)
3137BSRE5
F H L M C MLTCL MTG 3.120% 9/25/26
94.72
5,000,000.0000
5,214,062.50
4,736,100.00
0.59
(477,962.50)
3133TCE95
F H L M C MLTCL MTG 3.744% 8/15/32
96.84
3,020.2000
3,023.37
2,924.72
0.00
(98.65)
3135GO5G4
F N M A 0.250% 7/10/23
97.01
6,775,000.0000
6,760,433.75
6,572,224.25
0.81
(188,209.50)
3135GO5X7
F N M A 0.375% 8/25/25
89.42
7,945,000.0000
7,907,817.40
7,104,021.75
0.88
(803,795.65)
3135GO4Z3
F N M A 0.500% 6/17/25
90.38
9,905,000.0000
9,884,496.65
8,952,238.05
1.11
(932,258.60)
3135GO6G3
F N M A 0.500% 11/07/25
89.05
8,255,000.0000
8,225,447.10
7,351,407.70
0.91
(874,039.40)
3135GOX24
F N M A 1.625% 1/07/25
94.35
10,000,000.0000
10,157,936.40
9,434,600.00
1.17
(723,336.40)
3135GOV34
F N M A 2.500% 2/05/24
97.57
5,000,000.0000
4,980,850.00
4,878,650.00
0.60
(102,200.00)
31371 NUC7
F N M A #257179 4.500% 4/01/28
97.12
5,700.1400
6,028.47
5,535.98
0.00
(492.49)
31376KT22
F N M A #357969 5.000% 9/01/35
100.46
43,750.0600
47,031.31
43,951.31
0.01
(3,080.00)
31403DJZ3
F N M A #745580 5.000% 6/01/36
100.78
44,350.7200
47,677.02
44,698.43
0.01
(2,978.59)
31403GXF4
F N M A #748678 5.000% 10/01/33
97.76
750.3700
806.64
733.53
0.00
(73.11)
31406PQY8
F N M A #815971 5.000% 3/01/35
100.78
66,214.9600
71,181.09
66,733.42
0.01
(4,447.67)
31406XWT5
F N M A #823358 1.948% 2/01/35
100.36
18,758.8400
18,612.29
18,826.37
0.00
214.08
31407BXH7
F N M A #826080 5.000% 7/01/35
100.78
8,702.1500
9,354.79
8,770.20
0.00
(584.59)
3141OF4V4
F N M A #888336 5.000% 7/01/36
100.79
73,186.4400
78,675.44
73,760.95
0.01
(4,914.49)
3138EG6F6
F N M A #AL0869 4.500% 6/01/29
97.38
3,944.1100
4,171.29
3,840.85
0.00
(330.44)
31417YAY3
F N M A #MA0022 4.500% 4/01/29
97.38
6,667.6900
7,051.73
6,492.86
0.00
(558.87)
3135GO3U5
F N M A DEB 0.625% 4/22/25
91.13
14,000,000.0000
13,996,711.60
12,757,920.00
1.58
(1,238,791.60)
31397QREO
F N M A GTD REMIC 2.472% 2/25/41
99.58
79,124.4500
79,099.75
78,790.54
0.01
(309.21)
36225CAZ9
G N M A 1 1 #080023 1.750% 12/20/26
99.20
7,177.1000
7,295.66
7,119.54
0.00
(176.12)
36225CC20
G N M A 1 1 #080088 3.000% 6/20/27
98.77
5,090.3300
5,201.68
5,027.57
0.00
(174.11)
36225CNM4
G N M A 1 1 #080395 2.875% 4/20/30
98.78
3,046.8300
3,019.20
3,009.57
0.00
(9.63)
36225CN28
G N M A 1 1 #080408 2.875% 5/20/30
98.79
26,109.6000
25,844.41
25,793.15
0.00
(51.26)
36225DCB8
G N M A 1 1 #080965 1.625% 7/20/34
98.16
20,771.8500
20,758.87
20,389.65
0.00
(369.22)
36266FAC3
GM FIN AUTO LSNG 3.420% 6/20/25
98.06
3,035,000.0000
3,034,683.45
2,976,212.05
0.37
(58,471.40)
36265MAC9
GM FIN AUTO LSNG TR 1.900% 3/20/25
96.53
5,020,000.0000
5,019,956.83
4,845,555.00
0.60
(174,401.83)
362585AC5
GM FIN CONS AUT 3.100% 2/16/27
96.90
2,330,000.0000
2,329,513.03
2,257,793.30
0.28
(71,719.73)
362554AC1
GM FIN CONS AUTO 0.680% 9/16/26
94.22
1,705,000.0000
1,704,956.52
1,606,382.80
0.20
(98,573.72)
380146AC4
GM FIN CONS AUTO 1.260% 11/16/26
95.11
1,590,000.0000
1,589,861.83
1,512,169.50
0.19
(77,692.33)
40139LBD4
GUARDIAN LIFE MTN 1.250% 5/13/26
87.22
3,250,000.0000
3,124,290.00
2,834,487.50
0.35
(289,802.50)
43813GAC5
HONDAAUTO 0.270% 4/21/25
97.07
1,399,041.8300
1,399,016.23
1,357,993.94
0.17
(41,022.29)
2of5
Table of Contents
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2022
CUSIP
Asset Short Name
Price
Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
43813KAC6
HONDA AUTO 0.370% 10/18/24
97.81
2,133,347.3100
2,133,033.93
2,086,563.00
0.26
(46,470.93)
43815GAC3
HONDA AUTO REC 0.880% 1/21/26
94.58
2,290,000.0000
2,289,517.27
2,165,973.60
0.27
(123,543.67)
43815BAC4
HONDA AUTO REC OWN 1.880% 5/15/26
95.00
3,930,000.0000
3,929,408.93
3,733,539.30
0.46
(195,869.63)
438516CBO
HONEYWELL 1.350% 6/01/25
92.04
5,000,000.0000
5,119,000.00
4,601,900.00
0.57
(517,100.00)
44934KAC8
HTUNDAI AUTO REC TR 0.380% 1/15/26
95.30
6,040,000.0000
6,038,666.97
5,755,878.40
0.71
(282,788.57)
44891VAC5
HYUNDAI AUTO LEASE 0.330% 6/17/24
97.55
4,155,000.0000
4,154,376.75
4,053,077.85
0.50
(101,298.90)
44891WAC3
HYUNDAI AUTO LEASE 1.160% 1/15/25
96.26
2,895,000.0000
2,894,936.02
2,786,582.25
0.35
(108,353.77)
44933LAC7
HYUNDAI AUTO REC 0.380% 9/15/25
96.66
2,100,000.0000
2,099,779.08
2,029,776.00
0.25
(70,003.08)
448977ADO
HYUNDAI AUTO REC 2.220% 10/15/26
95.90
4,300,000.0000
4,299,834.45
4,123,657.00
0.51
(176,177.45)
44935FAD6
HYUNDAI AUTO REC TR 0.740% 5/15/26
94.34
1,600,000.0000
1,599,642.88
1,509,392.00
0.19
(90,250.88)
45814OBD1
INTEL CORP 2.875% 5/11/24
97.44
5,000,000.0000
5,025,900.00
4,872,100.00
0.60
(153,800.00)
4581XODZ8
INTER AMER BK M T N 0.500% 9/23/24
92.82
10,775,000.0000
10,767,026.50
10,001,678.25
1.24
(765,348.25)
4581XODN5
INTER AMER BK M T N 0.625% 7/15/25
90.21
5,050,000.0000
5,071,967.50
4,555,807.00
0.56
(516,160.50)
4581XODV7
INTER AMER BK M T N 0.875% 4/20/26
88.63
13,370,000.0000
13,308,765.40
11,849,964.70
1.47
(1,458,800.70)
459058J1-8
INTL BK M T N 0.500% 10/28/25
88.96
15,000,000.0000
14,964,951.60
13,344,000.00
1.65
(1,620,951.60)
459058JBO
INTL BK M T N 0.626% 4/22/25
91.03
6,245,000.0000
6,220,831.85
5,684,761.05
0.70
(536,070.80)
24422EUM9
JOHN DEERE MTN 3.650% 10/12/23
99.31
1,250,000.0000
1,250,237.50
1,241,337.50
0.15
(8,900.00)
47789QAC4
JOHN DEERE OWN 0.520% 3/16/26
94.48
2,820,000.0000
2,819,748.46
2,664,195.00
0.33
(155,553.46)
47788UAC6
JOHN DEERE OWNER 0.360% 9/15/25
96.09
2,300,000.0000
2,299,557.94
2,209,955.00
0.27
(89,602.94)
47787NAC3
JOHN DEERE OWNER 0.510% 11/15/24
98.04
735,636.5600
735,524.45
721,203.37
0.09
(14,321.08)
47787JAC2
JOHN DEERE OWNER 2.320% 9/15/26
95.57
3,010,000.0000
3,009,334.19
2,876,506.50
0.36
(132,827.69)
47800AAC4
JOHN DEERE OWNR TR 3.740% 2/16/27
97.63
3,140,000.0000
3,139,700.13
3,065,456.40
0.38
(74,243.73)
46647PBH8
JPMORGAN CHASE CO 2.005% 3/13/26
91.58
3,500,000.0000
3,602,345.00
3,205,300.00
0.40
(397,045.00)
46625HJH4
JPMORGAN CHASE CO 3.200% 1/25/23
99.68
2,000,000.0000
2,042,640.00
1,993,600.00
0.25
(49,040.00)
46647PAUO
JPMORGAN CHASE CO 3.797% 7/23/24
98.63
2,500,000.0000
2,632,175.00
2,465,825.00
0.31
(166,350.00)
46647PCBO
JPMORGAN CHASE CO SR 1.578% 4/22/27
86.33
5,000,000.0000
4,498,450.00
4,316,550.00
0.54
(181,900.00)
525ESCOY6
LEHMAN BRTH HLD ESC
-
2,000,000.0000
1,016,889.29
-
-
(1,016,889.29)
525ESCIB7
LEHMAN BRTH MTN ES 0.00001% 1/24/13
0.37
600,000.0000
315,678.37
2,220.00
0.00
(313,458.37)
58769KAD6
MERCEDES BENZ AUTO 0.400% 11/15/24
96.52
3,315,000.0000
3,314,749.72
3,199,671.15
0.40
(115,078.57)
59217GER6
MET LIFE GLOB MTN 1.875% 1/11/27
87.30
5,920,000.0000
5,913,251.20
5,168,041.60
0.64
(745,209.60)
59217GEE5
MET LIFE GLOB MTN 1.950% 1/13/23
99.33
2,255,000.0000
2,259,126.65
2,239,846.40
0.28
(19,280.25)
58989V2D5
MET TOWER MTN 1.250% 9/14/26
86.01
3,745,000.0000
3,741,554.60
3,221,111.95
0.40
(520,442.65)
61747YEA9
MORGAN STANLEY 0.790% 5/30/25
92.04
8,885,000.0000
8,889,710.25
8,177,754.00
1.01
(711,956.25)
61744YAN8
MORGAN STANLEY MTN 3.125% 1/23/23
99.67
1,998,000.0000
1,997,154.18
1,991,446.56
0.25
(5,707.62)
55380TXV7
MUFG BANK LTD C D 0.300% 10/31/22
99.76
2,500,000.0000
2,479,919.65
2,493,975.00
0.31
14,055.35
65479JAD5
NISSAN AUTO 1.930% 7/15/24
99.62
927,926.1200
927,877.13
924,427.84
0.11
(3,449.29)
668151-2J7
NORTHWESTERN MTN 4.000% 7/01/25
97.40
7,485,000.0000
7,482,455.10
7,290,539.70
0.90
(191,915.40)
69353RFL7
PNC BANK NA MTN 3.500% 6/08/23
99.43
5,000,000.0000
4,993,318.05
4,971,500.00
0.62
(21,818.05)
747525AFO
QUALCOMM INC 3.450% 5/20/25
96.80
8,000,000.0000
8,479,891.80
7,743,600.00
0.96
(736,291.80)
780151<71-11
ROYAL BANK OF MTN 1.150% 6/10/25
90.24
4,000,000.0000
4,013,620.00
3,609,520.00
0.45
(404,100.00)
78013XZU5
ROYAL BANK OF MTN 2.550% 7/16/24
95.89
6,500,000.0000
6,581,445.00
6,232,915.00
0.77
(348,530.00)
78012U3M5
ROYAL BK CDA N Y C D 1.350% 2/14/23
99.01
3,000,000.0000
3,000,000.00
2,970,270.00
0.37
(29,730.00)
3of5
Table of Contents
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2022
CUSIP
Asset Short Name
Price
Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
78012UW43
ROYAL BK OF C D 0.270% 10/20/22
99.84
2,000,000.0000
1,986,927.04
1,996,860.00
0.25
9,932.96
78445JAA5
S L M A 2.71382% 4/25/23
99.21
8,482.4900
8,448.07
8,415.31
0.00
(32.76)
79466LAG9
SALESFORCE COM INC 0.625% 7/15/24
93.21
1,350,000.0000
1,349,311.50
1,258,348.50
0.16
(90,963.00)
808513BN4
SCHWAB CHARLES
0.750% 3/18/24
94.55
2,785,000.0000
2,783,607.50
2,633,161.80
0.33
(150,445.70)
86959RTWO
SVENSKA C D 0.255% 10/14/22
99.89
6,000,000.0000
6,000,302.58
5,993,400.00
0.74
(6,902.58)
89114WJB2
TORONTO DOMINION
C D 0.270% 10/20/22
99.84
2,000,000.0000
1,987,255.53
1,996,840.00
0.25
9,584.47
89114WW68
TORONTO DOMINION
C D 2.680% 4/28/23
98.95
3,000,000.0000
3,000,000.00
2,968,380.00
0.37
(31,620.00)
89114TZN5
TORONTO DOMINION
MTN 1.950% 1/12/27
87.00
2,000,000.0000
1,984,582.40
1,740,040.00
0.22
(244,542.40)
89114QCA4
TORONTO DOMINION
MTN 2.650% 6/12/24
96.04
3,000,000.0000
3,000,570.00
2,881,110.00
0.36
(119,460.00)
89114TZT2
TORONTO DOMINION
MTN 2.800% 3/10/27
90.10
5,000,000.0000
4,960,350.00
4,505,050.00
0.56
(455,300.00)
89237VAB5
TOYOTA AUTO RECV
0.440% 10/15/24
98.35
1,511,729.9900
1,511,613.60
1,486,756.21
0.18
(24,857.39)
89239CAC3
TOYOTA LEASE OWNER
0.420% 10/21/24
96.27
3,185,000.0000
3,184,957.00
3,066,167.65
0.38
(118,789.35)
89238LAC4
TOYOTA LEASE OWNER
1.960% 2/20/25
96.37
6,125,000.0000
6,124,035.93
5,902,785.00
0.73
(221,250.93)
89236TJZ9
TOYOTA MOTOR MTN
3.050% 3/22/27
92.09
2,000,000.0000
1,945,900.00
1,841,740.00
0.23
(104,160.00)
89236TJK2
TOYOTA MTR CR MTN 1.125% 6/18/26
87.48
7,285,000.0000
7,281,794.60
6,372,553.75
0.79
(909,240.85)
912828W UO
U S TREASURY I P S
0.125% 7/15/24
96.58
12,976,808.0000
12,832,088.09
12,532,741.63
1.55
(299,346.46)
91282CFE6
U S TREASURY NT
3.125% 8/15/25
96.93
5,000,000.0000
4,826,171.88
4,846,500.00
0.60
20,328.12
91282CBG5
U S TREASURY NT
0.125% 1/31/23
98.84
60,000,000.0000
59,283,593.76
59,305,200.00
7.35
21,606.24
91282CBA8
U S TREASURY NT
0.125% 12/15/23
95.16
1,500,000.0000
1,498,007.81
1,427,340.00
0.18
(70,667.81)
91282CAM3
U S TREASURY NT
0.250% 9/30/25
88.88
6,500,000.0000
6,477,656.25
5,776,875.00
0.72
(700,781.25)
91282CBH3
U S TREASURY NT
0.375% 1/31/26
88.09
18,000,000.0000
17,781,875.00
15,855,480.00
1.97
(1,926,395.00)
912828ZL7
U S TREASURY NT
0.375% 4/30/25
90.58
12,000,000.0000
11,998,515.63
10,869,840.00
1.35
(1,128,675.63)
91282CCX7
U S TREASURY NT
0.375% 9/15/24
92.77
10,500,000.0000
10,377,363.28
9,740,850.00
1.21
(636,513.28)
91282CBC4
U S TREASURY NT
0.375% 12/31/25
88.43
10,000,000.0000
9,943,320.32
8,842,600.00
1.10
(1,100,720.32)
91282CBT7
U S TREASURY NT
0.750% 3/31/26
88.79
10,000,000.0000
9,943,359.37
8,879,300.00
1.10
(1,064,059.37)
91282CCF6
U S TREASURY NT
0.750% 5/31/26
88.31
7,500,000.0000
7,443,750.00
6,623,475.00
0.82
(820,275.00)
91282CCW9
U S TREASURY NT
0.750% 8/31/26
87.70
8,000,000.0000
7,874,375.01
7,015,920.00
0.87
(858,455.01)
91282CDR9
U S TREASURY NT
0.750% 12/31/23
95.73
5,000,000.0000
5,000,195.31
4,786,550.00
0.59
(213,645.31)
91282CDG3
U S TREASURY NT
1.125% 10/31/26
88.66
19,250,000.0000
19,119,013.68
17,067,050.00
2.12
(2,051,963.68)
912828Z78
U S TREASURY NT
1.500% 1/31/27
89.64
18,500,000.0000
17,870,410.15
16,583,585.00
2.06
(1,286,825.15)
91282CDZ1
U S TREASURY NT
1.500% 2/15/25
93.74
5,000,000.0000
4,812,890.63
4,686,900.00
0.58
(125,990.63)
912828YH7
U S TREASURY NT
1.500% 9/30/24
94.80
14,000,000.0000
13,859,296.88
13,272,140.00
1.65
(587,156.88)
912828XX3
U S TREASURY NT
2.000% 6/30/24
96.16
5,000,000.0000
5,028,710.94
4,807,800.00
0.60
(220,910.94)
912828W48
U S TREASURY NT
2.125% 2/29/24
97.00
10,000,000.0000
9,911,718.75
9,700,000.00
1.20
(211,718.75)
912828U57
U S TREASURY NT
2.125% 11/30/23
97.58
4,000,000.0000
3,937,343.74
3,903,120.00
0.48
(34,223.74)
9128283,17
U S TREASURY NT
2.125% 11/30/24
95.59
16,500,000.0000
16,783,886.72
15,771,690.00
1.96
(1,012,196.72)
912828V80
U S TREASURY NT
2.250% 1/31/24
97.34
7,500,000.0000
7,491,503.91
7,300,200.00
0.91
(191,303.91)
912828WJ5
U S TREASURY NT
2.500% 5/15/24
97.13
7,000,000.0000
7,193,046.88
6,799,310.00
0.84
(393,736.88)
91282CEN7
U S TREASURY NT
2.750% 4/30/27
94.37
17,000,000.0000
16,417,148.43
16,043,070.00
1.99
(374,078.43)
91282CEW7
U S TREASURY NT
3.250% 6/30/27
96.38
20,500,000.0000
20,645,273.45
19,756,875.00
2.45
(888,398.45)
911312AQ9
UNITED PARCEL SVC
2.450% 10/01/22
1.00
2,400,000.0000
2,407,152.00
2,400,000.00
0.30
(7,152.00)
91324PEC2
UNITEDHEALTH 1.150% 5/15/26
88.50
4,000,000.0000
3,904,703.05
3,539,920.00
0.44
(364,783.05)
4of5
Table of Contents
U.S. Bank
Asset Detail - Consolidated
As of 09/30/2022
CUSIP
Asset Short Name
Price Shares/Units
Cost Basis
Market Value
Percent of Total
Unrealized Gain/Loss
90331HPL1
US BANK NA MTN 2.050% 1/21/25
94.15
7,270,000.0000
7,254,514.90
6,844,486.90
0.85
(410,028.00)
92348KAV5
VERIZON MASTER TR 3.720% 7/20/27
99.02
2,750,000.0000
2,749,879.00
2,723,022.50
0.34
(26,856.50)
927804FN9
VIRGINIA ELEC PWR 2.750% 3/15/23
99.00
2,000,000.0000
2,003,940.00
1,980,080.00
0.25
(23,860.00)
927804GH1
VIRGINIA ELEC PWR CO 3.750% 5/15/27
94.40
5,735,000.0000
5,736,523.40
5,413,782.65
0.67
(322,740.75)
931142ERO
WALMART INC 1.050% 9/17/26
87.26
1,725,000.0000
1,721,739.75
1,505,148.75
0.19
(216,591.00)
931142EX7
WALMART INC 3.950% 9/09/27
97.08
4,995,000.0000
4,989,807.70
4,849,295.85
0.60
(140,511.85)
96130ALA4
WESTPAC BKG C D 0.300% 10/26/22
99.79
4,000,000.0000
3,974,475.71
3,991,760.00
0.49
17,284.29
Fixed Income Total
843,434,315.4100
842,139,453.26
792,022,608.02
98.20
(50,116,845.24)
Grand Total
857,969,763.5700
856,592,573.64
806,517,356.18
100.00
(50,075,217.46)
61178 i
Table of Contents
Transaction Type
Acquisitions
PURCHASED PAR VALUE OF NORTHWESTERN MUTUAL 4.000%
7/01/25 /J.P. MORGAN SECURITIES LLC/XOFF 7,485,000 PAR VALUE AT
99.966 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF JOHN DEERE OWNR TR 0.00001%
2/16/27 /RBC CAPITAL MARKETS, LLC/3,140,000 PAR VALUE AT
99.99045 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF U S TREASURY BILL 11/22/22
/NOMURA SECURITIES INTERNATIONA/10,000,000 PAR VALUE AT
99.1767222 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
7/1/2022
668151-2J7
(7,482,455.10)
0.999660
7,485,000.00
7,482,455.10
0.00
7/5/2022
31846V567
(6,153.26)
1.000000
6,153.26
6,153.26
0.00
7/5/2022
31846V567
(3,489.88)
1.000000
3,489.88
3,489.88
0.00
7/7/2022
31846V567
(81,250.00)
1.000000
81,250.00
81,250.00
0.00
7/11/2022
31846V567
(33,000.00)
1.000000
33,000.00
33,000.00
0.00
7/11/2022
31846V567
(63,968.75)
1.000000
63,968.75
63,968.75
0.00
7/12/2022
31846V567
(19,500.00)
1.000000
19,500.00
19,500.00
0.00
7/13/2022
31846V567
(21,986.25)
1.000000
21,986.25
21,986.25
0.00
7/13/2022
31846V567
(45,000.00)
1.000000
45,000.00
45,000.00
0.00
7/14/2022
31846V567
(14,576.25)
1.000000
14,576.25
14,576.25
0.00
7/15/2022
31846V567
(469,020.31)
1.000000
469,020.31
469,020.31
0.00
7/15/2022
31846V567
(9,096.29)
1.000000
9,096.29
9,096.29
0.00
7/18/2022
31846V567
(5,307.50)
1.000000
5,307.50
5,307.50
0.00
7/18/2022
31846V567
(3,000,000.00)
1.000000
3,000,000.00
3,000,000.00
0.00
7/18/2022
31846V567
(5,103,479.17)
1.000000
5,103,479.17
5,103,479.17
0.00
7/18/2022
31846V567
(202,426.38)
1.000000
202,426.38
202,426.38
0.00
7/19/2022
31846V567
(2,500,000.00)
1.000000
2,500,000.00
2,500,000.00
0.00
7/20/2022
47800AAC4
(3,139,700.13)
0.999905
3,140,000.00
3,139,700.13
0.00
7/21/2022
31846V567
(83,948.75)
1.000000
83,948.75
83,948.75
0.00
7/21/2022
31846V567
(2,040.46)
1.000000
2,040.46
2,040.46
0.00
7/25/2022
31846V567
(32,000.00)
1.000000
32,000.00
32,000.00
0.00
7/25/2022
31846V567
(156,631.71)
1.000000
156,631.71
156,631.71
0.00
7/25/2022
31846V567
(38,203.90)
1.000000
38,203.90
38,203.90
0.00
7/26/2022
31846V567
(46,250.00)
1.000000
46,250.00
46,250.00
0.00
7/27/2022
31846V567
(14,661.25)
1.000000
14,661.25
14,661.25
0.00
7/28/2022
31846V567
(10,000,000.00)
1.000000
10,000,000.00
10,000,000.00
0.00
7/29/2022
912796YR4
(9,917,672.22)
0.991767
10,000,000.00
9,917,672.22
0.00
8/1/2022
31846V567
(42,063,750.00)
1.000000
42,063,750.00
42,063,750.00
0.00
8/1/2022
31846V567
(256,875.00)
1.000000
256,875.00
256,875.00
0.00
8/2/2022
31846V567
(5,503.83)
1.000000
5,503.83
5,503.83
0.00
1 of 25
Table of Contents
Transaction Type
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF U S TREASURY NT 3.000% 6/30/27
/J.P. MORGAN SECURITIES LLC/6,000,000 PAR VALUE AT 101.2421875
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF U S TREASURY NT 3.000% 6/30/27
/CITIGROUP GLOBAL MARKETS INC./6,000,000 PAR VALUE AT
101.18359383 %
PURCHASED PAR VALUE OF VERIZON MASTER TR 3.560% 7/20/27
/BOFA SECURITIES, INC./FXD INC/2,750,000 PAR VALUE AT 99.9956 %
PURCHASED PAR VALUE OF VIRGINIA ELEC PWR CO 3.750% 5/15/27
/US BANCORP INVESTMENTS INC./2,735,000 PAR VALUE AT 100.079 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF CATERPILLAR FINL MTN 3.600% 8/12/27
/TRUIST SECURITIES, INC./2,000,000 PAR VALUE AT 99.715 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF MORGAN STANLEY MTN 3.125% 1/23/23
/PERSHING LLC/1,110,000 PAR VALUE AT 99.919 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF JPMORGAN CHASE CO SR 1.578%
4/22/27 /CITIGROUP GLOBAL MARKETS INC./5,000,000 PAR VALUE AT
89.969 %
PURCHASED PAR VALUE OF MORGAN STANLEY MTN 3.125% 1/23/23
/MARKETAXESS CORP/MTXX 888,000 PAR VALUE AT 100.006 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF U S TREASURY NT 3.000% 6/30/27
/BMO CAPITAL MARKETS CORP/BONDS/XOFF 5,000,000 PAR VALUE AT
100.2460938 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
8/2/2022
31846V567
(2,647.34)
1.000000
2,647.34
2,647.34
0.00
8/5/2022
31846V567
(62,500.00)
1.000000
62,500.00
62,500.00
0.00
8/8/2022
91282CEW7
(6,074,531.25)
1.012422
6,000,000.00
6,074,531.25
0.00
8/9/2022
31846V567
(49,025.00)
1.000000
49,025.00
49,025.00
0.00
8/10/2022
91282CEW7
(6,071,015.63)
1.011836
6,000,000.00
6,071,015.63
0.00
8/11/2022
92348KAV5
(2,749,879.00)
0.999956
2,750,000.00
2,749,879.00
0.00
8/11/2022
927804GH1
(2,737,160.65)
1.000790
2,735,000.00
2,737,160.65
0.00
8/12/2022
31846V567
(92,512.50)
1.000000
92,512.50
92,512.50
0.00
8/15/2022
31846V567
(493,782.89)
1.000000
493,782.89
493,782.89
0.00
8/15/2022
31846V567
(3,941.13)
1.000000
3,941.13
3,941.13
0.00
8/16/2022
31846V567
(8,654.84)
1.000000
8,654.84
8,654.84
0.00
8/18/2022
31846V567
(190,057.08)
1.000000
190,057.08
190,057.08
0.00
8/18/2022
31846V567
(967,933.60)
1.000000
967,933.60
967,933.60
0.00
8/19/2022
14913R3A3
(1,994,300.00)
0.997150
2,000,000.00
1,994,300.00
0.00
8/22/2022
31846V567
(103,152.02)
1.000000
103,152.02
103,152.02
0.00
8/22/2022
31846V567
(30,653.36)
1.000000
30,653.36
30,653.36
0.00
8/24/2022
61744YAN8
(1,109,100.90)
0.999190
1,110,000.00
1,109,100.90
0.00
8/24/2022
31846V567
(960,082.82)
1.000000
960,082.82
960,082.82
0.00
8/25/2022
46647PCBO
(4,498,450.00)
0.899690
5,000,000.00
4,498,450.00
0.00
8/25/2022
61744YAN8
(888,053.28)
1.000060
888,000.00
888,053.28
0.00
8/25/2022
31846V567
(34,979.05)
1.000000
34,979.05
34,979.05
0.00
8/26/2022
91282CEW7
(5,012,304.69)
1.002461
5,000,000.00
5,012,304.69
0.00
8/26/2022
31846V567
(5,000,000.00)
1.000000
5,000,000.00
5,000,000.00
0.00
8/29/2022
31846V567
(30,000.00)
1.000000
30,000.00
30,000.00
0.00
2of25
Table of Contents
Transaction Type
PURCHASED PAR VALUE OF U S TREASURY NT 3.000% 6/30/27
/BMO CAPITAL MARKETS CORP/BONDS/XOFF 3,500,000 PAR VALUE AT
99.64062514 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF WALMART INC 3.950% 9/09/27
/BARCLAYS CAPITAL INC. FIXED IN/2,885,000 PAR VALUE AT 99.978 %
PURCHASED PAR VALUE OF WALMART INC 3.950% 9/09/27
/BARCLAYS CAPITAL INC. FIXED IN/2,885,000 PAR VALUE AT 99.978 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF CATERPILLAR FINL MTN 3.600% 8/12/27
/BMO CAPITAL MARKETS CORP/BONDS/1,250,000 PAR VALUE AT
97.501 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF DEERE JOHN MTN 4.150% 9/15/27 /TD
SECURITIES (USA)/MTXX 2,000,000 PAR VALUE AT 98.631 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF U S TREASURY NT 2.750% 4/30/27
/CITIGROUP GLOBAL MARKETS INC./XOFF 5,000,000 PAR VALUE AT
93.84375 %
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
8/31/2022
91282CEW7
(3,487,421.88)
0.996406
3,500,000.00
3,487,421.88
0.00
8/31/2022
31846V567
(2,512,326.68)
1.000000
2,512,326.68
2,512,326.68
0.00
9/2/2022
31846V567
(8,091.17)
1.000000
8,091.17
8,091.17
0.00
9/2/2022
31846V567
(2,937.28)
1.000000
2,937.28
2,937.28
0.00
9/6/2022
31846V567
(146,962.50)
1.000000
146,962.50
146,962.50
0.00
9/8/2022
31846V567
(168,750.00)
1.000000
168,750.00
168,750.00
0.00
9/9/2022
931142EX7
(2,105,442.40)
0.997840
2,110,000.00
2,105,442.40
0.00
9/9/2022
931142EX7
(2,884,365.30)
0.999780
2,885,000.00
2,884,365.30
0.00
9/12/2022
31846V567
(70,000.00)
1.000000
70,000.00
70,000.00
0.00
9/13/2022
14913R3A3
(1,218,762.50)
0.975010
1,250,000.00
1,218,762.50
0.00
9/13/2022
31846V567
(1,626,441.67)
1.000000
1,626,441.67
1,626,441.67
0.00
9/14/2022
31846V567
(124,828.13)
1.000000
124,828.13
124,828.13
0.00
9/14/2022
31846V567
(4,500,000.00)
1.000000
4,500,000.00
4,500,000.00
0.00
9/15/2022
31846V567
(27,500.00)
1.000000
27,500.00
27,500.00
0.00
9/15/2022
31846V567
(427,104.35)
1.000000
427,104.35
427,104.35
0.00
9/15/2022
31846V567
(180,271.33)
1.000000
180,271.33
180,271.33
0.00
9/16/2022
31846V567
(8,654.84)
1.000000
8,654.84
8,654.84
0.00
9/19/2022
31846V567
(223,759.08)
1.000000
223,759.08
223,759.08
0.00
9/20/2022
31846V567
(12,507.19)
1.000000
12,507.19
12,507.19
0.00
9/20/2022
31846V567
(27,680.59)
1.000000
27,680.59
27,680.59
0.00
9/21 /2022
31846V567
(105,184.61)
1.000000
105,184.61
105,184.61
0.00
9/22/2022
24422EWK1
(1,972,620.00)
0.986310
2,000,000.00
1,972,620.00
0.00
9/23/2022
31846V567
(8,022.22)
1.000000
8,022.22
8,022.22
0.00
9/23/2022
31846V567
(4,000,000.00)
1.000000
4,000,000.00
4,000,000.00
0.00
9/23/2022
31846V567
(41,300.00)
1.000000
41,300.00
41,300.00
0.00
9/26/2022
31846V567
(35,402.67)
1.000000
35,402.67
35,402.67
0.00
9/26/2022
31846V567
(25,254.46)
1.000000
25,254.46
25,254.46
0.00
9/27/2022
91282CEN7
(4,692,187.50)
0.938438
5,000,000.00
4,692,187.50
0.00
3of25
Table of Contents
Transaction Type
PURCHASED PAR VALUE OF U S TREASURY NT 3.125% 8/15/25
/J.P. MORGAN SECURITIES LLC/XOFF 5,000,000 PAR VALUE AT
96.5234376 %
PURCHASED PAR VALUE OF F H L M C M T N 0.250% 6/26/23
/MARKETAXESS CORP/MTXX 1,250,000 PAR VALUE AT 97.131 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
PURCHASED PAR VALUE OF F H L B DISC NTS 12/12/22 /WELLS
FARGO SECURITIES, LLC/XOFF 5,000,000 PAR VALUE AT 99.3319444 %
PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z
Total Acquisitions
Dispositions
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 JUNE
FHLMC DUE 7/15/22
PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.725% 8/15/32
PAID DOWN PAR VALUE OF JOHN DEERE OWNER 0.510% 11/15/24
PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24
PAID DOWN PAR VALUE OF TOYOTA AUTO RECV 0.440% 10/15/24
MATURED PAR VALUE OF COOPERATIEVE C D 0.330% 7/18/22
3,000,000 PAR VALUE AT 100 %
PAID DOWN PAR VALUE OF HONDA AUTO 0.370% 10/18/24
SOLD PAR VALUE OF F H L B DEB 3.250% 6/09/23 /NOMURA
SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 100.06 %
MATURED PAR VALUE OF U S TREASURY BILL 7/19/22 2,500,000
PAR VALUE AT 100 %
PAID DOWN PAR VALUE OF G N M A I 1 #080023 1.750% 12/20/26 JUNE
GNMA DUE 7/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080088 2.000% 6/20/27 JUNE
GNMA DUE 7/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080395 1.875% 4/20/30 JUNE
GNMA DUE 7/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080408 1.875% 5/20/30 JUNE
GNMA DUE 7/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080965 1.625% 7/20/34 JUNE
GNMA DUE 7/20/22
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
9/28/2022
91282CFE6
(4,826,171.88)
0.965234
5,000,000.00
4,826,171.88
0.00
9/29/2022
3137EAES4
(1,214,137.50)
0.971310
1,250,000.00
1,214,137.50
0.00
9/29/2022
31846V567
(26,785,055.21)
1.000000
26,785,055.21
26,785,055.21
0.00
9/30/2022
313385580
(4,966,597.22)
0.993319
5,000,000.00
4,966,597.22
0.00
9/30/2022
31846V567
(150,625.00)
1.000000
150,625.00
150,625.00
0.00
(192,569,028.58)
193,629,699.55
192,569,028.58
-
7/1 /2022
7/12/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/15/2022
7/18/2022
7/18/2022
7/18/2022
7/19/2022
7/20/2022
7/20/2022
31846V567
31846V567
31348SWZ3
3133TCE95
47787NAC3
65479JAD5
89237VAB5
21684XUU8
43813KAC6
313383QR5
912796X20
36225CAZ9
36225CC20
7,482,455.10
451.19
20.93
45.20
55,263.05
180,598.57
161,637.34
3,000,000.00
192,938.54
5,003,000.00
2,494,714.69
1.000000
1.000000
0.000000
0.000000
0.000000
0.000000
0.000000
1.000000
0.000000
1.000600
1.000000
170.65 0.000000
112.02 0.000000
7/20/2022
36225CNM4
36.22
0.000000
7/20/2022
36225CN28
1,037.00
0.000000
7/20/2022
36225DCB8
540.45
0.000000
7/20/2022
31846V567
3,109,987.73
1.000000
7/25/2022
31394JY35
9,601.87
1.134585
(7,482,455.10)
(451.19)
(20.93)
(45.20)
(55,263.05)
(180,598.57)
(161,637.34)
(3,000,000.00)
(192,938.54)
(5,000,000.00)
(2,500,000.00)
(170.65)
(112.02)
(36.22)
(1,037.00)
(540.45)
(3,109,987.73)
(9,601.87)
(7,482,455.10)
(451.19)
(20.42)
(45.25)
(55,254.63)
(180,589.03)
(161,624.89)
(3,000,000.00)
(192,910.20)
(5,083,350.00)
(2,494,714.69)
(173.47)
(114.47)
(35.89)
(1,026.47)
(540.11)
(3,109,987.73)
(10,874.12)
0.00
0.00
0.51
(0.05)
8.42
9.54
12.45
0.00
28.34
(80,350.00)
0.00
(2.82)
(2.45)
0.33
10.53
0.34
0.00
(1,272.25)
4of25
Table of Contents
Transaction Type
PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #823358 1.973% 2/01/35 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JUNE
FNMA DUE 7/25/22
PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41
PAID DOWN PAR VALUE OF S L M A 2.71382% 4/25/23
MATURED PAR VALUE OF U S TREASURY BILL 7/28/22
10,000,000 PAR VALUE AT 100 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
MATURED PAR VALUE OF U S TREASURY NT 0.125% 7/31/22
42,000,000 PAR VALUE AT 100 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
SOLD PAR VALUE OF U S TREASURY NT 2.500% 3/31/23 /J.P.
MORGAN SECURITIES LLC/5,000,000 PAR VALUE AT 99.6132812 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
SOLD PAR VALUE OF U S TREASURY NT 1.625% 5/31/23 /NOMURA
SECURITIES INTERNATIONA/1,000,000 PAR VALUE AT 98.742188 %
SOLD PAR VALUE OF U S TREASURY NT 2.125% 11/30/23 /BMO
CAPITAL MARKETS CORP/BONDS/5,000,000 PAR VALUE AT 98.5429688
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
SOLD PAR VALUE OF BERKSHIRE HATHAWAY 2.750% 3/15/23
/PERSHING LLC/2,500,000 PAR VALUE AT 99.72 %
SOLD PAR VALUE OF U S TREASURY NT 0.125% 12/15/23 /WELLS
FARGO SECURITIES, LLC/500,000 PAR VALUE AT 96.042968 %
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
7/25/2022
31371NUC7
101.85
0.000000
(101.85)
(107.72)
(5.87)
7/25/2022
31376KT22
2,304.45
0.000000
(2,304.45)
(2,477.28)
(172.83)
7/25/2022
31403DJZ3
604.93
0.000000
(604.93)
(650.30)
(45.37)
7/25/2022
31403GXF4
4.20
0.000000
(4.20)
(4.51)
(0.31)
7/25/2022
31406PQY8
2,188.53
0.000000
(2,188.53)
(2,352.67)
(164.14)
7/25/2022
31406XWT5
270.92
0.000000
(270.92)
(268.80)
2.12
7/25/2022
31407BXH7
61.53
0.000000
(61.53)
(66.14)
(4.61)
7/25/2022
31410F4V4
1,042.14
0.000000
(1,042.14)
(1,120.30)
(78.16)
7/25/2022
3138EG6F6
80.77
0.000000
(80.77)
(85.42)
(4.65)
7/25/2022
31417YAY3
159.19
0.000000
(159.19)
(168.36)
(9.17)
7/25/2022
31397QRE0
1,367.47
0.000000
(1,367.47)
(1,367.04)
0.43
7/25/2022
78445JAA5
380.79
0.000000
(380.79)
(379.24)
1.55
7/28/2022
912796559
9,974,739.48
1.000000
(10,000,000.00)
(9,974,739.48)
0.00
7/29/2022
31846V567
9,917,672.22
1.000000
(9,917,672.22)
(9,917,672.22)
0.00
8/1/2022
91282CAC5
42,000,000.00
1.000000
(42,000,000.00)
(41,962,539.06)
37,460.94
8/1/2022
31846V567
45,000,000.00
1.000000
(45,000,000.00)
(45,000,000.00)
0.00
8/8/2022
9128284D9
4,980,664.06
0.996133
(5,000,000.00)
(4,930,820.31)
49,843.75
8/8/2022
31846V567
1,070,134.04
1.000000
(1,070,134.04)
(1,070,134.04)
0.00
8/10/2022
912828R69
987,421.88
0.987422
(1,000,000.00)
(951,445.31)
35,976.57
8/10/2022
912828U57
4,927,148.44
0.985430
(5,000,000.00)
(4,900,976.57)
26,171.87
8/10/2022
31846V567
154,407.19
1.000000
(154,407.19)
(154,407.19)
0.00
8/11/2022
084670BR8
2,493,000.00
0.997200
(2,500,000.00)
(2,440,950.00)
52,050.00
8/11/2022
91282CBA8
480,214.84
0.960430
(500,000.00)
(499,335.94)
(19,121.10)
5of25
Table of Contents
Transaction Type
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28 JULY
FHLMC DUE 8/15/22
PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.730% 8/15/32
PAID DOWN PAR VALUE OF JOHN DEERE OWNER 0.510% 11/15/24
PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24
PAID DOWN PAR VALUE OF TOYOTA AUTO RECV 0.440% 10/15/24
PAID DOWN PAR VALUE OF HONDA AUTO 0.370% 10/18/24
SOLD PAR VALUE OF MERCK CO INC 2.800% 5/18/23
/MARKETAXESS CORP/965,000 PAR VALUE AT 99.604 %
SOLD PAR VALUE OF MERCK CO INC 2.800% 5/18/23 /J.P.
MORGAN SECURITIES LLC/1,035,000 PAR VALUE AT 99.576 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
PAID DOWN PAR VALUE OF G N M A 1 1 #080023 1.750% 12/20/26 JULY
GNMA DUE 8/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080088 3.000% 6/20/27 JULY
GNMA DUE 8/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080395 2.875% 4/20/30 JULY
GNMA DUE 8/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080408 2.875% 5/20/30 JULY
GNMA DUE 8/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080965 1.625% 7/20/34 JULY
GNMA DUE 8/20/22
PAID DOWN PAR VALUE OF HONDA AUTO 0.270% 4/21/25
SOLD PAR VALUE OF U S TREASURY NT 0.125% 12/15/23 /BMO
CAPITAL MARKETS CORP/BONDS/XOFF 1,000,000 PAR VALUE AT
95.984375 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43
PAID DOWN PAR VALUE OF F N M A #257179 4.500% 4/01/28 JULY
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #357969 5.000% 9/01/35 JULY
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #745580 5.000% 6/01/36 JULY
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33 JULY
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #815971 5.000% 3/01/35 JULY
FNMA DUE 8/25/22
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
8/11 /2022
8/15/2022
8/15/2022
8/15/2022
8/15/2022
8/15/2022
8/18/2022
8/18/2022
8/19/2022
CUSIP Id
31846V567
31348SWZ3
3133TCE95
47787NAC3
65479JAD5
89237VAB5
43813KAC6
58933YAF2
58933YAF2
8/19/2022 31846V567
8/22/2022 36225CAZ9
8/22/2022 36225CC20
8/22/2022
36225CNM4
8/22/2022
36225CN28
8/22/2022
36225DCB8
8/22/2022 43813GAC5
8/24/2022 91282CBA8
Net Cash Amt
2,506,073.13
30.28
39.35
69,193.67
159,830.84
153,717.92
189,283.57
961,178.60
1,030,611.60
957,762.90
144.90
Price
1.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.996040
0.995760
1.000000
0.000000
114.72 0.000000
33.24 0.000000
266.33 0.000000
572.12 0.000000
102,790.89 0.000000
959,843.75 0.959844
Units
(2,506,073.13)
(30.28)
(39.35)
(69,193.67)
(159,830.84)
(153,717.92)
(189,283.57)
(965,000.00)
(1,035,000.00)
(957,762.90)
(144.90)
(114.72)
(33.24)
(266.33)
(572.12)
(102,790.89)
(1,000,000.00)
Cost
(2,506,073.13)
(29.54)
(39.39)
(69,183.12)
(159,822.40)
(153,706.08)
(189,255.76)
(940,218.80)
(1,008,421.20)
(957,762.90)
(147.29)
(117.23)
(32.94)
(263.62)
(571.76)
(102, 789.01)
(998,671.88)
Gain Loss
0.00
0.74
(0.04)
10.55
8.44
11.84
27.81
20,959.80
22,190.40
0.00
(2.39)
(2.51)
0.30
2.71
0.36
1.88
(38,828.13)
8/24/2022
31846V567
1,112,087.88
1.000000
(1,112,087.88)
(1,112,087.88)
0.00
8/25/2022
31394JY35
6,429.03
0.336091
(6,429.03)
(7,280.88)
(851.85)
8/25/2022
31371 NUC7
103.44
0.000000
(103.44)
(109.40)
(5.96)
8/25/2022
31376KT22
569.01
0.000000
(569.01)
(611.69)
(42.68)
8/25/2022
31403DJZ3
1,170.93
0.000000
(1,170.93)
(1,258.75)
(87.82)
8/25/2022
31403GXF4
4.22
0.000000
(4.22)
(4.54)
(0.32)
8/25/2022
31406PQY8
1,473.01
0.000000
(1,473.01)
(1,583.49)
(110.48)
6of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
PAID DOWN PAR VALUE OF F N M A #823358 1.973% 2/01/35 JULY
8/25/2022
31406XWT5
11,716.44
0.000000
(11,716.44)
(11,624.90)
91.54
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #826080 5.000% 7/01/35 JULY
8/25/2022
31407BXH7
315.56
0.000000
(315.56)
(339.23)
(23.67)
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #888336 5.000% 7/01/36 JULY
8/25/2022
31410F4V4
840.56
0.000000
(840.56)
(903.60)
(63.04)
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29 JULY
8/25/2022
3138EG6F6
69.74
0.000000
(69.74)
(73.76)
(4.02)
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A #MA0022 4.500% 4/01/29 JULY
8/25/2022
31417YAY3
176.94
0.000000
(176.94)
(187.13)
(10.19)
FNMA DUE 8/25/22
PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41
8/25/2022
31397QRE0
931.64
0.000000
(931.64)
(931.35)
0.29
SOLD PAR VALUE OF JP MORGAN CHASE CO 2.700% 5/18/23
8/25/2022
46625HRL6
2,574,763.40
0.996040
(2,585,000.00)
(2,476,714.35)
98,049.05
/MORGAN STANLEY & CO. LLC/MTXX 2,585,000 PAR VALUE AT 99.604 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
8/25/2022
31846V567
890,519.95
1.000000
(890,519.95)
(890,519.95)
0.00
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
8/25/2022
31846V567
1,888,363.68
1.000000
(1,888,363.68)
(1,888,363.68)
0.00
MATURED PAR VALUE OF F Al62H L B DISC NTS 0.00001 % 8/26/22
8/26/2022
313385D45
4,985,212.50
1.000000
(5,000,000.00)
(4,985,212.50)
0.00
5,000,000 PAR VALUE AT 100 %
SOLD PAR VALUE OF U S TREASURY NT 0.125% 12/15/23
8/26/2022
91282CBA8
2,397,949.22
0.959180
(2,500,000.00)
(2,496,679.69)
(98,730.47)
/CITIGROUP GLOBAL MARKETS INC./XOFF 2,500,000 PAR VALUE AT
95.9179688 %
SOLD PAR VALUE OF U S TREASURY NT 2.125% 11/30/23 /NOMURA
8/26/2022
912828U57
2,462,695.31
0.985078
(2,500,000.00)
(2,450,488.28)
12,207.03
SECURITIES INTERNATIONA/XOFF 2,500,000 PAR VALUE AT
98.5078124 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
8/26/2022
31846V567
163,587.18
1.000000
(163,587.18)
(163,587.18)
0.00
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
8/29/2022
31846V567
30,000.00
1.000000
(30,000.00)
(30,000.00)
0.00
SOLD PAR VALUE OF JP MORGAN CHASE CO 2.700% 5/18/23
8/31/2022
46625HRL6
1,113,784.00
0.994450
(1,120,000.00)
(1,104,443.20)
9,340.80
/GOLDMAN SACHS & CO. LLC/MTXX 1,120,000 PAR VALUE AT 99.445 %
SOLD PAR VALUE OF JP MORGAN CHASE CO 2.700% 5/18/23
8/31/2022
46625HRL6
1,288,266.00
0.994800
(1,295,000.00)
(1,240,752.45)
47,513.55
/MARKETAXESS CORP/MTXX 1,295,000 PAR VALUE AT 99.48 %
SOLD PAR VALUE OF U S TREASURY NT 2.125% 11/30/23 /NOMURA
8/31/2022
912828U57
3,443,261.72
0.983789
(3,500,000.00)
(3,434,824.22)
8,437.50
SECURITIES INTERNATIONA/XOFF 3,500,000 PAR VALUE AT
98.37890629 %
SOLD PAR VALUE OF WALMART INC 3.400% 6/26/23 /MITSUBISHI
9/9/2022
931142EK5
3,873,986.00
0.998450
(3,880,000.00)
(3,878,991.40)
(5,005.40)
UFJ SECURITIES USA/MTXX 3,880,000 PAR VALUE AT 99.845 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
9/9/2022
31846V567
1,089,071.26
1.000000
(1,089,071.26)
(1,089,071.26)
0.00
SOLD PAR VALUE OF CHARLES SCHWAB CORP 2.650% 1/25/23
9/13/2022
808513AT2
2,741,337.50
0.996850
(2,750,000.00)
(2,741,640.00)
(302.50)
/MARKETAXESS CORP/MTXX 2,750,000 PAR VALUE AT 99.685 %
MATURED PAR VALUE OF INTER AMER DEV BK 1.750% 9/14/22
9/14/2022
4581XOCZ9
4,500,000.00
1.000000
(4,500,000.00)
(4,300,785.00)
199,215.00
4,500,000 PAR VALUE AT 100 %
PAID DOWN PAR VALUE OF F H L M C #786064 2.262% 1/01/28
9/15/2022
31348SWZ3
11.73
0.000000
(11.73)
(11.44)
0.29
AUGUST FHLMC DUE 9/15/22
7of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.738% 8/15/32
9/15/2022
3133TCE95
73.60
0.000000
(73.60)
(73.68)
(0.08)
PAID DOWN PAR VALUE OF JOHN DEERE OWNER 0.510% 11/15/24
9/15/2022
47787NAC3
60,310.92
0.000000
(60,310.92)
(60,301.73)
9.19
PAID DOWN PAR VALUE OF NISSAN AUTO 1.930% 7/15/24
9/15/2022
65479JAD5
168,390.51
0.000000
(168,390.51)
(168,381.62)
8.89
PAID DOWN PAR VALUE OF TOYOTA AUTO RECV 0.440% 10/15/24
9/15/2022
89237VAB5
159,765.82
0.000000
(159,765.82)
(159,753.52)
12.30
PAID DOWN PAR VALUE OF HONDA AUTO 0.370% 10/18/24
9/19/2022
43813KAC6
186,043.94
0.000000
(186,043.94)
(186,016.61)
27.33
PAID DOWN PAR VALUE OF G N M A 1 1 #080023 1.750% 12/20/26
9/20/2022
36225CAZ9
152.50
0.000000
(152.50)
(155.02)
(2.52)
AUGUST GNMA DUE 9/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080088 3.000% 6/20/27
9/20/2022
36225CC20
436.82
0.000000
(436.82)
(446.37)
(9.55)
AUGUST GNMA DUE 9/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080395 2.875% 4/20/30
9/20/2022
36225CNM4
63.87
0.000000
(63.87)
(63.29)
0.58
AUGUST GNMA DUE 9/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080408 2.875% 5/20/30
9/20/2022
36225CN28
259.23
0.000000
(259.23)
(256.60)
2.63
AUGUST GNMA DUE 9/20/22
PAID DOWN PAR VALUE OF G N M A 1 1 #080965 1.625% 7/20/34
9/20/2022
36225DCB8
352.11
0.000000
(352.11)
(351.89)
0.22
AUGUST GNMA DUE 9/20/22
PAID DOWN PAR VALUE OF HONDA AUTO 0.270% 4/21/25
9/21/2022
43813GAC5
103,167.28
0.000010
(103,167.28)
(103,165.39)
1.89
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
9/22/2022
31846V567
1,945,347.78
1.000000
(1,945,347.78)
(1,945,347.78)
0.00
MATURED PAR VALUE OF BANK NOVA C D 0.200% 9/23/22
9/23/2022
06417MRR8
4,000,000.00
1.000000
(4,000,000.00)
(3,979,402.91)
20,597.09
4,000,000 PAR VALUE AT 100 %
PAID DOWN PAR VALUE OF F H L M C MLTCL MT 9.50001% 9/25/43
9/26/2022
31394JY35
6,887.47
0.000000
(6,887.47)
(7,800.06)
(912.59)
PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28
9/26/2022
31371NUC7
100.89
0.000000
(100.89)
(106.70)
(5.81)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35
9/26/2022
31376KT22
1,030.26
0.000000
(1,030.26)
(1,107.53)
(77.27)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36
9/26/2022
31403DJZ3
1,012.15
0.000000
(1,012.15)
(1,088.06)
(75.91)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A #748678 5.000% 10/01/33
9/26/2022
31403GXF4
4.24
0.000000
(4.24)
(4.56)
(0.32)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35
9/26/2022
31406PQY8
531.64
0.000000
(531.64)
(571.51)
(39.87)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A #823358 1.948% 2/01/35
9/26/2022
31406XWT5
9,163.48
0.000000
(9,163.48)
(9,091.89)
71.59
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35
9/26/2022
31407BXH7
201.01
0.000000
(201.01)
(216.09)
(15.08)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36
9/26/2022
31410F4V4
827.21
0.000000
(827.21)
(889.25)
(62.04)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A #AL0869 4.500% 6/01/29
9/26/2022
3138EG6F6
67.25
0.000000
(67.25)
(71.12)
(3.87)
AUGUST FNMA DUE 9/25/22
PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29
9/26/2022
31417YAY3
217.20
0.000000
(217.20)
(229.71)
(12.51)
AUGUST FNMA DUE 9/25/22
8of25
Table of Contents
Transaction Type
PAID DOWN PAR VALUE OF F N M A GTD REMIC 2.472% 2/25/41
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
SOLD PAR VALUE OF U S TREASURY NT 0.125% 12/15/23 /BMO
CAPITAL MARKETS CORP/BONDS/XOFF 1,000,000 PAR VALUE AT
95.050781 %
SOLD PAR VALUE OF U S TREASURY NT 0.750% 12/31/23 /BMO
CAPITAL MARKETS CORP/BONDS/XOFF 2,500,000 PAR VALUE AT
95.6132812 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
MATURED PAR VALUE OF U S TREASURY BILL 9/29/22
28,000,000 PAR VALUE AT 100 %
SOLD UNITS OF FIRST AM GOVT OB FD CL Z
Total Dispositions
Other
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
SHARES DUE 6/30/2022 INTEREST FROM 6/1/22 TO 6/30/22
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
SHARES DUE 6/30/2022 INTEREST FROM 6/1/22 TO 6/30/22
INTEREST EARNED ON F N M A 1.625% 1/07/25 $1 PV ON
10000000.0000 SHARES DUE 7/7/2022
INTEREST EARNED ON BANK OF AMERICA MTN 3.300% 1/11/23 $1 PV
ON 2000000.0000 SHARES DUE 7/11/2022
INTEREST EARNED ON F N M A 0.250% 7/10/23 $1 PV ON
6775000.0000 SHARES DUE 7/10/2022
INTEREST EARNED ON MET LIFE GLOB MTN 1.875% 1/11/27 $1 PV
ON 5920000.0000 SHARES DUE 7/11/2022
INTEREST EARNED ON BMW VEH OWNER TR 3.210% 8/25/26 $1 PV
ON 2530000.0000 SHARES DUE 6/25/2022
INTEREST EARNED ON BMW VEH OWNER TR 4.173% 8/25/26 $1 PV
ON 8798.0800 SHARES DUE 6/25/2022
INTEREST EARNED ON TORONTO DOMINION MTN 1.950% 1/12/27 $1
PV ON 2000000.0000 SHARES DUE 7/12/2022
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
65416.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
65416.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON AMERICAN HONDA MTN 1.500% 1/13/25 $1 PV
ON 6000000.0000 SHARES DUE 7/13/2022
INTEREST EARNED ON MET LIFE GLOB MTN 1.950% 1/13/23 $1 PV
ON 2255000.0000 SHARES DUE 7/13/2022
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
9/26/2022
31397QRE0
892.79
6,697.976355
(892.79)
(892.51)
0.28
9/27/2022
31846V567
4,748,233.70
1.000000
(4,748,233.70)
(4,748,233.70)
0.00
9/28/2022
91282CBA8
950,507.81
0.950508
(1,000,000.00)
(998,671.87)
(48,164.06)
9/28/2022
91282CDR9
2,390,332.03
0.956133
(2,500,000.00)
(2,500,097.66)
(109,765.63)
9/28/2022
31846V567
1,499,069.90
1.000000
(1,499,069.90)
(1,499,069.90)
0.00
9/29/2022
912796U64
27,864,761.94
1.000000
(28,000,000.00)
(27,864,761.94)
0.00
9/30/2022
31846V567
34,966,597.22
1.000000
(34,966,597.22)
(34,966,597.22)
0.00
264,421,567.70
(265,172,172.93)
(264,185,640.50)
235,927.20
7/1/2022
31846V567
6,153.26
0.000000
0.00
0.00
0.00
7/1/2022
31846V567
3,489.88
0.000000
0.00
0.00
0.00
7/7/2022
3135GOX24
81,250.00
0.000000
0.00
0.00
0.00
7/11/2022
06051GEU9
33,000.00
0.000000
0.00
0.00
0.00
7/11/2022
3135G05G4
8,468.75
0.000000
0.00
0.00
0.00
7/11/2022
59217GER6
55,500.00
0.000000
0.00
0.00
0.00
7/12/2022
05602RAD3
8,346.89
0.000000
0.00
0.00
0.00
7/12/2022
05602RAD3
(8,798.08)
0.000000
0.00
0.00
0.00
7/12/2022
89114TZN5
19,500.00
0.000000
0.00
0.00
0.00
7/13/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
7/13/2022
912828WU0
0.00
0.000000
0.00
65,416.00
0.00
7/13/2022
02665WEA5
45,000.00
0.000000
0.00
0.00
0.00
7/13/2022
59217GEE5
21,986.25
0.000000
0.00
0.00
0.00
9of25
Table of Contents
Transaction Type
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
65416.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
65416.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON AMERICAN HONDA MTN 3.450% 7/14/23 $1 PV
ON 845000.0000 SHARES DUE 7/14/2022
INTEREST EARNED ON AMERICAN EXPRESS 3.390% 5/17/27 $1 PV
ON 18701.5000 SHARES DUE 7/15/2022 $0.00283/PV ON 6,620,000.00
PV DUE 7/15/22
INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON
2.2400 SHARES DUE 7/15/2022 MAY FHLMC DUE 7/15/22
INTEREST EARNED ON F H L M C MLTCL MTG 3.725% 8/15/32 $1 PV
ON 9.8700 SHARES DUE 7/15/2022 $0.00310/PV ON 3,178.35 PV DUE
7/15/22
INTEREST EARNED ON HONDA AUTO REC OWN 1.880% 5/15/26 $1
PV ON 6157.0000 SHARES DUE 7/15/2022 $0.00157/PV ON
3,930,000.00 PV DUE 7/15/22
INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV
ON 1912.6700 SHARES DUE 7/15/2022 $0.00032/PV ON 6,040,000.00
PV DUE 7/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV
ON 1142.6300 SHARES DUE 7/15/2022 $0.00027/PV ON 4,155,000.00
PV DUE 7/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 1.160% 1/15/25 $1 PV
ON 2798.5000 SHARES DUE 7/15/2022 $0.00097/PV ON 2,895,000.00
PV DUE 7/15/22
INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV
ON 665.0000 SHARES DUE 7/15/2022 $0.00032/PV ON 2,100,000.00 PV
DUE 7/15/22
INTEREST EARNED ON HYUNDAI AUTO REC 2.220% 10/15/26 $1 PV
ON 7955.0000 SHARES DUE 7/15/2022 $0.00185/PV ON 4,300,000.00
PV DUE 7/15/22
INTEREST EARNED ON HYUNDAI AUTO REC TR 0.740% 5/15/26 $1 PV
ON 986.6700 SHARES DUE 7/15/2022 $0.00062/PV ON 1,600,000.00 PV
DUE 7/15/22
INTEREST EARNED ON INTER AMER BK M T N 0.625% 7/15/25 $1 PV
ON 5050000.0000 SHARES DUE 7/15/2022
INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV
ON 1222.0000 SHARES DUE 7/15/2022 $0.00043/PV ON 2,820,000.00
PV DUE 7/15/22
INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV
ON 690.0000 SHARES DUE 7/15/2022 $0.00030/PV ON 2,300,000.00 PV
DUE 7/15/22
U.S. Bank Transaction
History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id Net
Cash Amt
Price
Units
Cost
Gain Loss
7/13/2022
912828WUO
0.00
0.000000
65,416.00
0.00
0.00
7/13/2022
912828WUO
0.00
0.000000
0.00
0.00
0.00
7/14/2022
02665WCJ8
14,576.25
0.000000
0.00
0.00
0.00
7/15/2022
02582JJT8
18,701.50
0.000000
0.00
0.00
0.00
7/15/2022
31348SWZ3
2.24
0.000000
0.00
0.00
0.00
7/15/2022
3133TCE95
9.87
0.000000
0.00
0.00
0.00
7/15/2022
43815BAC4
6,157.00
0.000000
0.00
0.00
0.00
7/15/2022
44934KAC8
1,912.67
0.000000
0.00
0.00
0.00
7/15/2022
44891 VAC5
1,142.63
0.000000
0.00
0.00
0.00
7/15/2022
44891 WAC3
2,798.50
0.000000
0.00
0.00
0.00
7/15/2022
44933LAC7
665.00
0.000000
0.00
0.00
0.00
7/15/2022
448977ADO
7,955.00
0.000000
0.00
0.00
0.00
7/15/2022
44935FAD6
986.67
0.000000
0.00
0.00
0.00
7/15/2022
4581XODN5
15,781.25
0.000000
0.00
0.00
0.00
7/15/2022
47789QAC4
1,222.00
0.000000
0.00
0.00
0.00
7/15/2022
47788UAC6
690.00
0.000000
0.00
0.00
0.00
10of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date CUSIP Id Net Cash Amt
INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV
7/15/2022 47787NAC3 391.17
ON 391.1700 SHARES DUE 7/15/2022 $0.00042/PV ON 920,404.20 PV
DUE 7/15/22
INTEREST EARNED ON JOHN DEERE OWNER 2.320% 9/15/26 $1 PV
7/15/2022 47787JAC2 5,819.33
ON 5819.3300 SHARES DUE 7/15/2022 $0.00193/PV ON 3,010,000.00
PV DUE 7/15/22
INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1
7/15/2022 58769KAD6 1,105.00
PV ON 1105.0000 SHARES DUE 7/15/2022 $0.00033/PV ON
3,315,000.00 PV DUE 7/15/22
INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON
7/15/2022 65479JAD5 2,310.76
2310.7600 SHARES DUE 7/15/2022 $0.00161/PV ON 1,436,746.04 PV
DUE 7/15/22
INTEREST EARNED ON SALESFORCE COM INC 0.625% 7/15/24 $1 PV
7/15/2022 79466LAG9 4,218.75
ON 1350000.0000 SHARES DUE 7/15/2022
INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV
7/15/2022 89237VAB5 728.51
ON 728.5100 SHARES DUE 7/15/2022 $0.00037/PV ON 1,986,851.07 PV
DUE 7/15/22
INTEREST EARNED ON U S TREASURY I P S 0.125% 7/15/24 $1 PV ON
7/15/2022 912828WU0 7,953.66
12725856.0000 SHARES DUE 7/15/2022
INTEREST EARNED ON COOPERATIEVE C D 0.330% 7/18/22 $1 PV
7/18/2022 21684XUU8 5,307.50
ON 3000000.0000 SHARES DUE 7/18/2022 INTEREST ON 7/18/2022
MATURITY
INTEREST EARNED ON GM FIN CONS ALIT 3.100% 2/16/27 $1 PV ON
7/18/2022 362585AC5 6,019.17
6019.1700 SHARES DUE 7/16/2022 $0.00258/PV ON 2,330,000.00 PV
DUE 7/16/22
INTEREST EARNED ON GM FIN CONS AUTO 0.680% 9/16/26 $1 PV
7/18/2022 362554AC1 966.17
ON 966.1700 SHARES DUE 7/16/2022 $0.00057/PV ON 1,705,000.00 PV
DUE 7/16/22
INTEREST EARNED ON GM FIN CONS AUTO 1.260% 11/16/26 $1 PV
7/18/2022 380146AC4 1,669.50
ON 1669.5000 SHARES DUE 7/16/2022 $0.00105/PV ON 1,590,000.00
PV DUE 7/16/22
INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON
7/18/2022 43813KAC6 833.00
833.0000 SHARES DUE 7/18/2022 $0.00031/PV ON 2,701,613.36 PV
DUE 7/18/22
INTEREST EARNED ON ROYAL BANK OF MTN 2.550% 7/16/24 $1 PV
7/18/2022 78013XZU5 82,875.00
ON 6500000.0000 SHARES DUE 7/16/2022
RECEIVED ACCRUED INTEREST ON SALE OF F H L B DEB 3.250%
7/18/2022 313383QR5 17,604.17
6/09/23
INTEREST EARNED ON U S TREASURY BILL 7/19/22 $1 PV ON
7/19/2022 912796X20 5,285.31
2500000.0000 SHARES DUE 7/19/2022 2,500,000 PAR VALUE AT 100 %
INTEREST EARNED ON G N M A 1 1 #080023 1.750% 12/20/26 $1 PV ON
7/20/2022 36225CAZ9 11.15
11.1500 SHARES DUE 7/20/2022 JUNE GNMA DUE 7/20/22
Price
Units
Cost
Gain Loss
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
11 of 25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id Net Cash Amt
Price
Units
Cost
Gain Loss
INTEREST EARNED ON G N M A 11 #080088 2.000% 6/20/27 $1 PV ON
7/20/2022
36225CC20
9.59
0.000000
0.00
0.00
0.00
9.5900 SHARES DUE 7/20/2022 JUNE GNMA DUE 7/20/22
INTEREST EARNED ON G N M A 11 #080395 1.875% 4/20/30 $1 PV ON
7/20/2022
36225CNM4
4.97
0.000000
0.00
0.00
0.00
4.9700 SHARES DUE 7/20/2022 JUNE GNMA DUE 7/20/22
INTEREST EARNED ON G N M A 1 1 #080408 1.875% 5/20/30 $1 PV ON
7/20/2022
36225CN28
43.24
0.000000
0.00
0.00
0.00
43.2400 SHARES DUE 7/20/2022 JUNE GNMA DUE 7/20/22
INTEREST EARNED ON G N M A 11 #080965 1.625% 7/20/34 $1 PV ON
7/20/2022
36225DCB8
30.11
0.000000
0.00
0.00
0.00
30.1100 SHARES DUE 7/20/2022 JUNE GNMA DUE 7/20/22
INTEREST EARNED ON GM FIN AUTO LSNG 3.420% 6/20/25 $1 PV
7/20/2022
36266FAC3
8,649.75
0.000000
0.00
0.00
0.00
ON 8649.7500 SHARES DUE 7/20/2022 $0.00285/PV ON 3,035,000.00
PV DUE 7/20/22
INTEREST EARNED ON GM FIN AUTO LSNG TR 1.900% 3/20/25 $1 PV
7/20/2022
36265MAC9
7,948.34
0.000000
0.00
0.00
0.00
ON 7948.3400 SHARES DUE 7/20/2022 $0.00158/PV ON 5,020,000.00
PV DUE 7/20/22
INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1
7/20/2022
89239CAC3
1,114.75
0.000000
0.00
0.00
0.00
PV ON 1114.7500 SHARES DUE 7/20/2022 $0.00035/PV ON
3,185,000.00 PV DUE 7/20/22
INTEREST EARNED ON TOYOTA LEASE OWNER 1.960% 2/20/25 $1
7/20/2022
89238LAC4
10,004.16
0.000000
0.00
0.00
0.00
PV ON 10004.1600 SHARES DUE 7/20/2022 $0.00163/PV ON
6,125,000.00 PV DUE 7/20/22
INTEREST EARNED ON F H L M C M T N 0.375% 7/21/25 $1 PV ON
7/21/2022
3137EAEU9
9,431.25
0.000000
0.00
0.00
0.00
5030000.0000 SHARES DUE 7/21/2022
INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON
7/21/2022
43813GAC5
361.13
0.000000
0.00
0.00
0.00
361.1300 SHARES DUE 7/21/2022 $0.00023/PV ON 1,605,000.00 PV
DUE 7/21/22
INTEREST EARNED ON HONDA AUTO REC 0.880% 1/21/26 $1 PV
7/21/2022
43815GAC3
1,679.33
0.000000
0.00
0.00
0.00
ON 1679.3300 SHARES DUE 7/21/2022 $0.00073/PV ON 2,290,000.00
PV DUE 7/21/22
INTEREST EARNED ON US BANK NA MTN 2.050% 1/21/25 $1 PV ON
7/21/2022
90331HPL1
74,517.50
0.000000
0.00
0.00
0.00
7270000.0000 SHARES DUE 7/21/2022
INTEREST EARNED ON AMRESCO 2.39267% 6/25/29 $1 PV ON
7/25/2022
03215PFN4
232.54
0.000000
0.00
0.00
0.00
232.5400 SHARES DUE 7/25/2022 $0.00199/PV ON 116,624.77 PV DUE
7/25/22
INTEREST EARNED ON BMW VEH OWNER TR 3.210% 8/25/26 $1 PV
7/25/2022
05602RAD3
6,767.75
0.000000
0.00
0.00
0.00
ON 6767.7500 SHARES DUE 7/25/2022 $0.00268/PV ON 2,530,000.00
PV DUE 7/25/22
INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV
7/25/2022
09690AAC7
569.25
0.000000
0.00
0.00
0.00
ON 569.2500 SHARES DUE 7/25/2022 $0.00027/PV ON 2,070,000.00 PV
DUE 7/25/22
INTEREST EARNED ON BMW VEHICLE LEASE 1.100% 3/25/25 $1 PV
7/25/2022
05601XAC3
2,200.00
0.000000
0.00
0.00
0.00
ON 2200.0000 SHARES DUE 7/25/2022 $0.00092/PV ON 2,400,000.00
PV DUE 7/25/22
12of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
INTEREST EARNED ON CHARLES SCHWAB CORP 2.650% 1/25/23 $1
7/25/2022
808513AT2
89,437.50
0.000000
0.00
0.00
0.00
PV ON 6750000.0000 SHARES DUE 7/25/2022
INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV
7/25/2022
3137BFE98
13,212.50
0.000000
0.00
0.00
0.00
ON 5000000.0000 SHARES DUE 7/25/2022
INTEREST EARNED ON F H L M C MLTCL MT 9.50001 % 9/25/43 $1 PV
7/25/2022
31394JY35
2,389.53
0.000000
0.00
0.00
0.00
ON 2389.5300 SHARES DUE 7/25/2022 $0.00542/PV ON 441,144.41 PV
DUE 7/25/22
INTEREST EARNED ON F H L M C MLTCL MTG 3.120% 9/25/26 $1 PV
7/25/2022
3137BSRE5
13,000.00
0.000000
0.00
0.00
0.00
ON 13000.0000 SHARES DUE 7/25/2022 $0.00260/PV ON 5,000,000.00
PV DUE 7/25/22
INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON
7/25/2022
31371 NUC7
22.52
0.000000
0.00
0.00
0.00
22.5200 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON
7/25/2022
31376KT22
198.56
0.000000
0.00
0.00
0.00
198.5600 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON
7/25/2022
31403DJZ3
196.41
0.000000
0.00
0.00
0.00
196.4100 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON
7/25/2022
31403GXF4
3.18
0.000000
0.00
0.00
0.00
3.1800 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON
7/25/2022
31406PQY8
293.37
0.000000
0.00
0.00
0.00
293.3700 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #823358 1.973% 2/01/35 $1 PV ON
7/25/2022
31406XWT5
65.62
0.000000
0.00
0.00
0.00
65.6200 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON
7/25/2022
31407BXH7
38.67
0.000000
0.00
0.00
0.00
38.6700 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON
7/25/2022
31410F4V4
316.23
0.000000
0.00
0.00
0.00
316.2300 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON
7/25/2022
3138EG6F6
15.61
0.000000
0.00
0.00
0.00
15.6100 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON
7/25/2022
31417YAY3
27.08
0.000000
0.00
0.00
0.00
27.0800 SHARES DUE 7/25/2022 JUNE FNMA DUE 7/25/22
INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV
7/25/2022
31397QRE0
158.02
0.000000
0.00
0.00
0.00
ON 158.0200 SHARES DUE 7/25/2022 $0.00192/PV ON 82,316.35 PV
DUE 7/25/22
INTEREST EARNED ON JPMORGAN CHASE CO 3.200% 1/25/23 $1 PV
7/25/2022
46625HJH4
32,000.00
0.000000
0.00
0.00
0.00
ON 2000000.0000 SHARES DUE 7/25/2022
INTEREST EARNED ON JPMORGAN CHASE CO 3.797% 7/23/24 $1 PV
7/25/2022
46647PAU0
47,462.50
0.000000
0.00
0.00
0.00
ON 2500000.0000 SHARES DUE 7/23/2022
INTEREST EARNED ON S L M A 2.71382% 4/25/23 $1 PV ON
7/25/2022
78445JAA5
60.13
0.000000
0.00
0.00
0.00
60.1300 SHARES DUE 7/25/2022 $0.00678/PV ON 8,863.28 PV DUE
7/25/22
INTEREST EARNED ON F F C B DEB 1.850% 7/26/24 $1 PV ON
7/26/2022
3133EKWV4
46,250.00
0.000000
0.00
0.00
0.00
5000000.0000 SHARES DUE 7/26/2022
13of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
7/27/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
72072.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
7/27/2022
912828WU0
0.00
0.000000
0.00
72,072.00
0.00
72072.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON BANK OF NY MTN 1.850% 1/27/23 $1 PV ON
7/27/2022
06406RAM9
14,661.25
0.000000
0.00
0.00
0.00
1585000.0000 SHARES DUE 7/27/2022
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
7/27/2022
912828WU0
0.00
0.000000
72,072.00
0.00
0.00
72072.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
7/27/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
72072.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON U S TREASURY BILL 7/28/22 $1 PV ON
7/28/2022
912796559
25,260.52
0.000000
0.00
0.00
0.00
10000000.0000 SHARES DUE 7/28/2022 10,000,000 PAR VALUE AT 100 %
CASH DISBURSEMENT PAID TO OCS OUTGOING DOMESTIC WIRE
8/1/2022
(45,000,000.00)
0.000000
0.00
0.00
0.00
TO XX9645; PER DIR DTD 7/28/2022
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
8/1/2022
31846V567
5,503.83
0.000000
0.00
0.00
0.00
SHARES DUE 7/31/2022 INTEREST FROM 7/1/22 TO 7/31/22
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
8/1/2022
31846V567
2,647.34
0.000000
0.00
0.00
0.00
SHARES DUE 7/31/2022 INTEREST FROM 7/1/22 TO 7/31/22
INTEREST EARNED ON U S TREASURY NT 0.125% 1/31/23 $1 PV ON
8/1/2022
91282CBG5
37,500.00
0.000000
0.00
0.00
0.00
60000000.0000 SHARES DUE 7/31/2022
INTEREST EARNED ON U S TREASURY NT 0.125% 7/31/22 $1 PV ON
8/1/2022
91282CAC5
26,250.00
0.000000
0.00
0.00
0.00
42000000.0000 SHARES DUE 7/31/2022
INTEREST EARNED ON U S TREASURY NT 0.375% 1/31/26 $1 PV ON
8/1/2022
91282CBH3
33,750.00
0.000000
0.00
0.00
0.00
18000000.0000 SHARES DUE 7/31/2022
INTEREST EARNED ON U S TREASURY NT 1.500% 1/31/27 $1 PV ON
8/1/2022
912828Z78
138,750.00
0.000000
0.00
0.00
0.00
18500000.0000 SHARES DUE 7/31/2022
INTEREST EARNED ON U S TREASURY NT 2.250% 1/31/24 $1 PV ON
8/1/2022
912828V80
84,375.00
0.000000
0.00
0.00
0.00
7500000.0000 SHARES DUE 7/31/2022
INTEREST EARNED ON F N M A 2.500% 2/05/24 $1 PV ON
8/5/2022
3135GOV34
62,500.00
0.000000
0.00
0.00
0.00
5000000.0000 SHARES DUE 8/5/2022
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
8/8/2022
91282CEW7
(20,665.76)
0.000000
0.00
0.00
0.00
3.000% 6/30/27
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/8/2022
9128284D9
44,398.91
0.000000
0.00
0.00
0.00
2.500% 3/31/23
INTEREST EARNED ON APPLE INC 2.500% 2/09/25 $1 PV ON
8/9/2022
037833AZ3
49,025.00
0.000000
0.00
0.00
0.00
3922000.0000 SHARES DUE 8/9/2022
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
8/10/2022
91282CEW7
(21,725.54)
0.000000
0.00
0.00
0.00
3.000% 6/30/27
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/10/2022
912828R69
3,152.32
0.000000
0.00
0.00
0.00
1.625% 5/31/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/10/2022
912828U57
20,611.34
0.000000
0.00
0.00
0.00
2.125% 11/30/23
14of25
Table of Contents
Transaction Type
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
83928.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
83928.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
PAID ACCRUED INTEREST ON PURCHASE OF VIRGINIA ELEC PWR CO
3.750% 5/15/27
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
83928.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
RECEIVED ACCRUED INTEREST ON SALE OF BERKSHIRE HATHAWAY
2.750% 3/15/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
0.125% 12/15/23
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
83928.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON F H L M C 1.500% 2/12/25 $1 PV ON
12335000.0000 SHARES DUE 8/12/2022
INTEREST EARNED ON AMERICAN EXPRESS 3.390% 5/17/27 $1 PV
ON 18701.5000 SHARES DUE 8/15/2022 $0.00283/PV ON 6,620,000.00
PV DUE 8/15/22
INTEREST EARNED ON BANK OF AMERICAN MTN 2.015% 2/13/26 $1
PV ON 2500000.0000 SHARES DUE 8/13/2022
INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON
2.2000 SHARES DUE 8/15/2022 JUNE FHLMC DUE 8/15/22
INTEREST EARNED ON F H L M C MLTCL MTG 3.730% 8/15/32 $1 PV
ON 9.7400 SHARES DUE 8/15/2022 $0.00311/PV ON 3,133.15 PV DUE
8/15/22
INTEREST EARNED ON HONDA AUTO REC OWN 1.880% 5/15/26 $1
PV ON 6157.0000 SHARES DUE 8/15/2022 $0.00157/PV ON
3,930,000.00 PV DUE 8/15/22
INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV
ON 1912.6700 SHARES DUE 8/15/2022 $0.00032/PV ON 6,040,000.00
PV DUE 8/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV
ON 1142.6300 SHARES DUE 8/15/2022 $0.00027/PV ON 4,155,000.00
PV DUE 8/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 1.160% 1/15/25 $1 PV
ON 2798.5000 SHARES DUE 8/15/2022 $0.00097/PV ON 2,895,000.00
PV DUE 8/15/22
INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV
ON 665.0000 SHARES DUE 8/15/2022 $0.00032/PV ON 2,100,000.00 PV
DUE 8/15/22
U.S. Bank Transaction
History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id Net
Cash Amt
Price
Units
Cost
Gain Loss
8/11/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
8/11/2022
912828WU0
0.00
0.000000
0.00
83,928.00
0.00
8/11/2022
927804GH1
(20,227.60)
0.000000
0.00
0.00
0.00
8/11/2022
912828WU0
0.00
0.000000
83,928.00
0.00
0.00
8/11/2022
084670BR8
27,881.94
0.000000
0.00
0.00
0.00
8/11/2022
91282CBA8
97.34
0.000000
0.00
0.00
0.00
8/11/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
8/12/2022
3137EAEP0
92,512.50
0.000000
0.00
0.00
0.00
8/15/2022
02582JJT8
18,701.50
0.000000
0.00
0.00
0.00
8/15/2022
06051GHY8
25,187.50
0.000000
0.00
0.00
0.00
8/15/2022
31348SWZ3
2.20
0.000000
0.00
0.00
0.00
8/15/2022
3133TCE95
9.74
0.000000
0.00
0.00
0.00
8/15/2022
43815BAC4
6,157.00
0.000000
0.00
0.00
0.00
8/15/2022
44934KAC8
1,912.67
0.000000
0.00
0.00
0.00
8/15/2022
44891 VAC5
1,142.63
0.000000
0.00
0.00
0.00
8/15/2022
44891WAC3
2,798.50
0.000000
0.00
0.00
0.00
8/15/2022
44933LAC7
665.00
0.000000
0.00
0.00
0.00
15of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id Net Cash Amt
Price
Units
Cost
Gain Loss
INTEREST EARNED ON HYUNDAI AUTO REC 2.220% 10/15/26 $1 PV
8/15/2022
448977AD0
7,955.00
0.000000
0.00
0.00
0.00
ON 7955.0000 SHARES DUE 8/15/2022 $0.00185/PV ON 4,300,000.00
PV DUE 8/15/22
INTEREST EARNED ON HYUNDAI AUTO REC TR 0.740% 5/15/26 $1 PV
8/15/2022
44935FAD6
986.67
0.000000
0.00
0.00
0.00
ON 986.6700 SHARES DUE 8/15/2022 $0.00062/PV ON 1,600,000.00 PV
DUE 8/15/22
INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV
8/15/2022
47789QAC4
1,222.00
0.000000
0.00
0.00
0.00
ON 1222.0000 SHARES DUE 8/15/2022 $0.00043/PV ON 2,820,000.00
PV DUE 8/15/22
INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV
8/15/2022
47788UAC6
690.00
0.000000
0.00
0.00
0.00
ON 690.0000 SHARES DUE 8/15/2022 $0.00030/PV ON 2,300,000.00 PV
DUE 8/15/22
INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV
8/15/2022
47787NAC3
367.68
0.000000
0.00
0.00
0.00
ON 367.6800 SHARES DUE 8/15/2022 $0.00042/PV ON 865,141.15 PV
DUE 8/15/22
INTEREST EARNED ON JOHN DEERE OWNER 2.320% 9/15/26 $1 PV
8/15/2022
47787JAC2
5,819.33
0.000000
0.00
0.00
0.00
ON 5819.3300 SHARES DUE 8/15/2022 $0.00193/PV ON 3,010,000.00
PV DUE 8/15/22
INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1
8/15/2022
58769KAD6
1,105.00
0.000000
0.00
0.00
0.00
PV ON 1105.0000 SHARES DUE 8/15/2022 $0.00033/PV ON
3,315,000.00 PV DUE 8/15/22
INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON
8/15/2022
65479JAD5
2,020.30
0.000000
0.00
0.00
0.00
2020.3000 SHARES DUE 8/15/2022 $0.00161/PV ON 1,256,147.47 PV
DUE 8/15/22
INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV
8/15/2022
89237VAB5
669.24
0.000000
0.00
0.00
0.00
ON 669.2400 SHARES DUE 8/15/2022 $0.00037/PV ON 1,825,213.73 PV
DUE 8/15/22
INTEREST EARNED ON U S TREASURY NT 1.500% 2/15/25 $1 PV ON
8/15/2022
91282CDZ1
37,500.00
0.000000
0.00
0.00
0.00
5000000.0000 SHARES DUE 8/15/2022
INTEREST EARNED ON GM FIN CONS ALIT 3.100% 2/16/27 $1 PV ON
8/16/2022
362585AC5
6,019.17
0.000000
0.00
0.00
0.00
6019.1700 SHARES DUE 8/16/2022 $0.00258/PV ON 2,330,000.00 PV
DUE 8/16/22
INTEREST EARNED ON GM FIN CONS AUTO 0.680% 9/16/26 $1 PV
8/16/2022
362554AC1
966.17
0.000000
0.00
0.00
0.00
ON 966.1700 SHARES DUE 8/16/2022 $0.00057/PV ON 1,705,000.00 PV
DUE 8/16/22
INTEREST EARNED ON GM FIN CONS AUTO 1.260% 11/16/26 $1 PV
8/16/2022
380146AC4
1,669.50
0.000000
0.00
0.00
0.00
ON 1669.5000 SHARES DUE 8/16/2022 $0.00105/PV ON 1,590,000.00
PV DUE 8/16/22
INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON
8/18/2022
43813KAC6
773.51
0.000000
0.00
0.00
0.00
773.5100 SHARES DUE 8/18/2022 $0.00031/PV ON 2,508,674.82 PV
DUE 8/18/22
RECEIVED ACCRUED INTEREST ON SALE OF MERCK CO INC
8/18/2022
58933YAF2
6,755.00
0.000000
0.00
0.00
0.00
2.800% 5/18/23
16 of 25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date CUSIP Id Net Cash Amt
PAID ACCRUED INTEREST ON PURCHASE OF CATERPILLAR FINL MTN
8/19/2022 14913R3A3 (1,400.00)
3.600% 8/12/27
RECEIVED ACCRUED INTEREST ON SALE OF MERCK CO INC
8/19/2022 58933YAF2 7,325.50
2.800% 5/18/23
INTEREST EARNED ON G N M A 1 1 #080023 1.750% 12/20/26 $1 PV ON
8/22/2022 36225CAZ9 10.90
10.9000 SHARES DUE 8/20/2022 JULY GNMA DUE 8/20/22
INTEREST EARNED ON G N M A 1 1 #080088 3.000% 6/20/27 $1 PV ON
8/22/2022 36225CC20 14.10
14.1000 SHARES DUE 8/20/2022 JULY GNMA DUE 8/20/22
INTEREST EARNED ON G N M A 1 1 #080395 2.875% 4/20/30 $1 PV ON
8/22/2022 36225CNM4 7.53
7.5300 SHARES DUE 8/20/2022 JULY GNMA DUE 8/20/22
INTEREST EARNED ON G N M A 1 1 #080408 2.875% 5/20/30 $1 PV ON
8/22/2022 36225CN28 63.81
63.8100 SHARES DUE 8/20/2022 JULY GNMA DUE 8/20/22
INTEREST EARNED ON G N M A 1 1 #080965 1.625% 7/20/34 $1 PV ON
8/22/2022 36225DCB8 29.38
29.3800 SHARES DUE 8/20/2022 JULY GNMA DUE 8/20/22
INTEREST EARNED ON GM FIN AUTO LSNG 3.420% 6/20/25 $1 PV
8/22/2022 36266FAC3 8,649.75
ON 8649.7500 SHARES DUE 8/20/2022 $0.00285/PV ON 3,035,000.00
PV DUE 8/20/22
INTEREST EARNED ON GM FIN AUTO LSNG TR 1.900% 3/20/25 $1 PV
8/22/2022 36265MAC9 7,948.34
ON 7948.3400 SHARES DUE 8/20/2022 $0.00158/PV ON 5,020,000.00
PV DUE 8/20/22
INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON
8/22/2022 43813GAC5 361.13
361.1300 SHARES DUE 8/21/2022 $0.00023/PV ON 1,605,000.00 PV
DUE 8/21/22
INTEREST EARNED ON HONDA AUTO REC 0.880% 1/21/26 $1 PV
8/22/2022 43815GAC3 1,679.33
ON 1679.3300 SHARES DUE 8/21/2022 $0.00073/PV ON 2,290,000.00
PV DUE 8/21/22
INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1
8/22/2022 89239CAC3 1,114.75
PV ON 1114.7500 SHARES DUE 8/20/2022 $0.00035/PV ON
3,185,000.00 PV DUE 8/20/22
INTEREST EARNED ON TOYOTA LEASE OWNER 1.960% 2/20/25 $1
8/22/2022 89238LAC4 10,004.16
PV ON 10004.1600 SHARES DUE 8/20/2022 $0.00163/PV ON
6,125,000.00 PV DUE 8/20/22
PAID ACCRUED INTEREST ON PURCHASE OF MORGAN STANLEY MTN
8/24/2022 61744YAN8 (2,986.98)
3.125% 1 /23/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/24/2022 91282CBA8 239.07
0.125% 12/15/23
INTEREST EARNED ON AMRESCO 3.3056% 6/25/29 $1 PV ON
8/25/2022 03215PFN4 321.26
321.2600 SHARES DUE 8/25/2022 $0.00275/PV ON 116,624.77 PV DUE
8/25/22
INTEREST EARNED ON BMW VEH OWNER TR 3.210% 8/25/26 $1 PV
8/25/2022 05602RAD3 6,767.75
ON 6767.7500 SHARES DUE 8/25/2022 $0.00268/PV ON 2,530,000.00
PV DUE 8/25/22
Price
Units
Cost
Gain Loss
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
17of25
Table of Contents
Transaction Type
INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV
ON 569.2500 SHARES DUE 8/25/2022 $0.00027/PV ON 2,070,000.00 PV
DUE 8/25/22
INTEREST EARNED ON BMW VEHICLE LEASE 1.100% 3/25/25 $1 PV
ON 2200.0000 SHARES DUE 8/25/2022 $0.00092/PV ON 2,400,000.00
PV DUE 8/25/22
INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV
ON 13212.5000 SHARES DUE 8/25/2022 $0.00264/PV ON 5,000,000.00
PV DUE 8/25/22
INTEREST EARNED ON F H L M C MLTCL MT 9.50001 % 9/25/43 $1 PV
ON 2337.5200 SHARES DUE 8/25/2022 $0.00542/PV ON 431,542.54 PV
DUE 8/25/22
INTEREST EARNED ON F H L M C MLTCL MTG 3.120% 9/25/26 $1 PV
ON 13000.0000 SHARES DUE 8/25/2022 $0.00260/PV ON 5,000,000.00
PV DUE 8/25/22
INTEREST EARNED ON F N M A 0.375% 8/25/25 $1 PV ON
7945000.0000 SHARES DUE 8/25/2022
INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON
22.1400 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON
188.9600 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON
193.8900 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON
3.1600 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON
284.2500 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #823358 1.973% 2/01/35 $1 PV ON
65.1700 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON
38.4100 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON
311.8900 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON
15.3000 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON
26.4800 SHARES DUE 8/25/2022 JULY FNMA DUE 8/25/22
INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV
ON 198.2600 SHARES DUE 8/25/2022 $0.00245/PV ON 80,948.88 PV
DUE 8/25/22
PAID ACCRUED INTEREST ON PURCHASE OF JPMORGAN CHASE CO
SR 1.578% 4/22/27
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date CUSIP Id Net Cash Amt
8/25/2022 09690AAC7 569.25
8/25/2022 05601XAC3
8/25/2022 3137BFE98
8/25/2022 31394JY35
8/25/2022 3137BSRE5
8/25/2022
3135G05X7
8/25/2022
31371NUC7
8/25/2022
31376KT22
8/25/2022
31403DJZ3
8/25/2022
31403GXF4
8/25/2022
31406PQY8
8/25/2022
31406XWT5
8/25/2022
31407BXH7
8/25/2022
31410F4V4
8/25/2022
3138EG6F6
8/25/2022
31417YAY3
8/25/2022
31397QREO
8/25/2022 46647PCBO
Price Units Cost Gain Loss
0.000000 0.00 0.00 0.00
2,200.00
0.000000
0.00
0.00
0.00
13,212.50
0.000000
0.00
0.00
0.00
2,337.52
0.000000
0.00
0.00
0.00
13,000.00
0.000000
0.00
0.00
0.00
14,896.88
0.000000
0.00
0.00
0.00
22.14
0.000000
0.00
0.00
0.00
188.96
0.000000
0.00
0.00
0.00
193.89
0.000000
0.00
0.00
0.00
3.16
0.000000
0.00
0.00
0.00
284.25
0.000000
0.00
0.00
0.00
65.17
0.000000
0.00
0.00
0.00
38.41
0.000000
0.00
0.00
0.00
311.89
0.000000
0.00
0.00
0.00
15.30
0.000000
0.00
0.00
0.00
26.48
0.000000
0.00
0.00
0.00
198.26
0.000000
0.00
0.00
0.00
(26,957.50)
0.000000
0.00
0.00
0.00
18of25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
PAID ACCRUED INTEREST ON PURCHASE OF MORGAN STANLEY MTN
8/25/2022
61744YAN8
(2,466.67)
0.000000
0.00
0.00
0.00
3.125% 1 /23/23
RECEIVED ACCRUED INTEREST ON SALE OF JP MORGAN CHASE CO
8/25/2022
46625HRL6
18,805.88
0.000000
0.00
0.00
0.00
2.700% 5/18/23
INTEREST EARNED ON F H L B DISC NTS 0.00001 % 8/26/22 $1 PV ON
8/26/2022
313385D45
14,787.50
0.000000
0.00
0.00
0.00
5000000.0000 SHARES DUE 8/26/2022 5,000,000 PAR VALUE AT 100 %
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
8/26/2022
91282CEW7
(25,169.84)
0.000000
0.00
0.00
0.00
3.000% 6/30/27
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/26/2022
91282CBA8
614.75
0.000000
0.00
0.00
0.00
0.125% 12/15/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/26/2022
9128281-157
12,628.07
0.000000
0.00
0.00
0.00
2.125% 11 /30/23
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
8/29/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
90688.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
8/29/2022
912828WU0
0.00
0.000000
0.00
90,688.00
0.00
90688.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
8/29/2022
912828WU0
0.00
0.000000
90,688.00
0.00
0.00
90688.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
8/29/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
90688.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON U S TREASURY NT 0.750% 8/31/26 $1 PV ON
8/31/2022
91282CCW9
30,000.00
0.000000
0.00
0.00
0.00
8000000.0000 SHARES DUE 8/31/2022
INTEREST EARNED ON U S TREASURY NT 2.125% 2/29/24 $1 PV ON
8/31/2022
912828W48
106,250.00
0.000000
0.00
0.00
0.00
10000000.0000 SHARES DUE 8/31/2022
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
8/31/2022
91282CEW7
(19,164.40)
0.000000
0.00
0.00
0.00
3.000% 6/30/27
RECEIVED ACCRUED INTEREST ON SALE OF JP MORGAN CHASE CO
8/31/2022
46625HRL6
8,652.00
0.000000
0.00
0.00
0.00
2.700% 5/18/23
RECEIVED ACCRUED INTEREST ON SALE OF JP MORGAN CHASE CO
8/31/2022
46625HRL6
10,003.88
0.000000
0.00
0.00
0.00
2.700% 5/18/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
8/31/2022
912828U57
18,695.36
0.000000
0.00
0.00
0.00
2.125% 11/30/23
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
9/1/2022
31846V567
8,091.17
0.000000
0.00
0.00
0.00
SHARES DUE 8/31/2022 INTEREST FROM 8/1/22 TO 8/31/22
INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000
9/1/2022
31846V567
2,937.28
0.000000
0.00
0.00
0.00
SHARES DUE 8/31/2022 INTEREST FROM 8/1/22 TO 8/31/22
INTEREST EARNED ON BANK OF AMERICA 3.550% 3/05/24 $1 PV
9/6/2022
06051 GHF9
118,481.25
0.000000
0.00
0.00
0.00
ON 6675000.0000 SHARES DUE 9/5/2022
INTEREST EARNED ON CHARLES SCHWAB CORP 2.450% 3/03/27 $1
9/6/2022
808513BY0
28,481.25
0.000000
0.00
0.00
0.00
PV ON 2325000.0000 SHARES DUE 9/3/2022
INTEREST EARNED ON F H L B DEB 3.375% 9/08/23 $1 PV ON
9/8/2022
313383YJ4
168,750.00
0.000000
0.00
0.00
0.00
10000000.0000 SHARES DUE 9/8/2022
19of25
Table of Contents
Transaction Type
RECEIVED ACCRUED INTEREST ON SALE OF WALMART INC
3.400% 6/26/23
INTEREST EARNED ON TORONTO DOMINION MTN 2.800% 3/10/27 $1
PV ON 5000000.0000 SHARES DUE 9/10/2022
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
4992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
4992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON CHUBB INA HLDGS INC 2.700% 3/13/23 $1 PV
ON 2000000.0000 SHARES DUE 9/13/2022
INTEREST EARNED ON F H L B DEB 2.875% 9/13/24 $1 PV ON
2500000.0000 SHARES DUE 9/13/2022
INTEREST EARNED ON JPMORGAN CHASE CO 2.005% 3/13/26 $1 PV
ON 3500000.0000 SHARES DUE 9/13/2022
PAID ACCRUED INTEREST ON PURCHASE OF CATERPILLAR FINL MTN
3.600% 8/12/27
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
4992.0000 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
RECEIVED ACCRUED INTEREST ON SALE OF CHARLES SCHWAB
CORP 2.650% 1/25/23
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY
4992.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI
INTEREST EARNED ON F H L B DEB 2.375% 3/14/25 $1 PV ON
5225000.0000 SHARES DUE 9/14/2022
INTEREST EARNED ON INTER AMER DEV BK 1.750% 9/14/22 $1 PV
ON 4500000.0000 SHARES DUE 9/14/2022
INTEREST EARNED ON MET TOWER MTN 1.250% 9/14/26 $1 PV
ON 3745000.0000 SHARES DUE 9/14/2022
INTEREST EARNED ON ACE INA HOLDING 3.150% 3/15/25 $1 PV ON
2000000.0000 SHARES DUE 9/15/2022
INTEREST EARNED ON AMERICAN EXPRESS 3.390% 5/17/27 $1 PV
ON 18701.5000 SHARES DUE 9/15/2022 $0.00283/PV ON 6,620,000.00
PV DUE 9/15/22
INTEREST EARNED ON BANK OF MONTREAL MTN 1.250% 9/15/26 $1
PV ON 3000000.0000 SHARES DUE 9/15/2022
INTEREST EARNED ON BERKSHIRE HATHAWAY 2.300% 3/15/27 $1
PV ON 6875000.0000 SHARES DUE 9/15/2022
INTEREST EARNED ON F H L M C #786064 2.262% 1/01/28 $1 PV ON
2.1500 SHARES DUE 9/15/2022 JULY FHLMC DUE 9/15/22
INTEREST EARNED ON F H L M C MLTCL MTG 3.738% 8/15/32 $1 PV
ON 9.6400 SHARES DUE 9/15/2022 $0.00312/PV ON 3,093.80 PV DUE
9/15/22
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
9/9/2022
931142EK5
26,750.44
0.000000
0.00
0.00
0.00
9/12/2022
89114TZT2
70,000.00
0.000000
0.00
0.00
0.00
9/13/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
9/13/2022
912828WU0
0.00
0.000000
0.00
4,992.00
0.00
9/13/2022
00440EAP2
27,000.00
0.000000
0.00
0.00
0.00
9/13/2022
3130A2UW4
35,937.50
0.000000
0.00
0.00
0.00
9/13/2022
46647PBH8
35,087.50
0.000000
0.00
0.00
0.00
9/13/2022
14913R3A3
(3,875.00)
0.000000
0.00
0.00
0.00
9/13/2022
912828WU0
0.00
0.000000
4,992.00
0.00
0.00
9/13/2022
808513AT2
9,716.67
0.000000
0.00
0.00
0.00
9/13/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
9/14/2022
3130A4CH3
62,046.88
0.000000
0.00
0.00
0.00
9/14/2022
4581XOCZ9
39,375.00
0.000000
0.00
0.00
0.00
9/14/2022
58989V2D5
23,406.25
0.000000
0.00
0.00
0.00
9/15/2022
00440EAS6
31,500.00
0.000000
0.00
0.00
0.00
9/15/2022
02582JJT8
18,701.50
0.000000
0.00
0.00
0.00
9/15/2022
06368FAC3
18,750.00
0.000000
0.00
0.00
0.00
9/15/2022
084664CZ2
79,062.50
0.000000
0.00
0.00
0.00
9/15/2022
31348SWZ3
2.15
0.000000
0.00
0.00
0.00
9/15/2022
3133TCE95
9.64
0.000000
0.00
0.00
0.00
20 of 25
Table of Contents
Transaction Type
INTEREST EARNED ON HONDA AUTO REC OWN 1.880% 5/15/26 $1
PV ON 6157.0000 SHARES DUE 9/15/2022 $0.00157/PV ON
3,930,000.00 PV DUE 9/15/22
INTEREST EARNED ON HTUNDAI AUTO REC TR 0.380% 1/15/26 $1 PV
ON 1912.6700 SHARES DUE 9/15/2022 $0.00032/PV ON 6,040,000.00
PV DUE 9/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 0.330% 6/17/24 $1 PV
ON 1142.6300 SHARES DUE 9/15/2022 $0.00027/PV ON 4,155,000.00
PV DUE 9/15/22
INTEREST EARNED ON HYUNDAI AUTO LEASE 1.160% 1/15/25 $1 PV
ON 2798.5000 SHARES DUE 9/15/2022 $0.00097/PV ON 2,895,000.00
PV DUE 9/15/22
INTEREST EARNED ON HYUNDAI AUTO REC 0.380% 9/15/25 $1 PV
ON 665.0000 SHARES DUE 9/15/2022 $0.00032/PV ON 2,100,000.00 PV
DUE 9/15/22
INTEREST EARNED ON HYUNDAI AUTO REC 2.220% 10/15/26 $1 PV
ON 7955.0000 SHARES DUE 9/15/2022 $0.00185/PV ON 4,300,000.00
PV DUE 9/15/22
INTEREST EARNED ON HYUNDAI AUTO REC TR 0.740% 5/15/26 $1 PV
ON 986.6700 SHARES DUE 9/15/2022 $0.00062/PV ON 1,600,000.00 PV
DUE 9/15/22
INTEREST EARNED ON JOHN DEERE OWN 0.520% 3/16/26 $1 PV
ON 1222.0000 SHARES DUE 9/15/2022 $0.00043/PV ON 2,820,000.00
PV DUE 9/15/22
INTEREST EARNED ON JOHN DEERE OWNER 0.360% 9/15/25 $1 PV
ON 690.0000 SHARES DUE 9/15/2022 $0.00030/PV ON 2,300,000.00 PV
DUE 9/15/22
INTEREST EARNED ON JOHN DEERE OWNER 0.510% 11/15/24 $1 PV
ON 338.2800 SHARES DUE 9/15/2022 $0.00042/PV ON 795,947.48 PV
DUE 9/15/22
INTEREST EARNED ON JOHN DEERE OWNER 2.320% 9/15/26 $1 PV
ON 5819.3300 SHARES DUE 9/15/2022 $0.00193/PV ON 3,010,000.00
PV DUE 9/15/22
INTEREST EARNED ON JOHN DEERE OWNR TR 6.85667% 2/16/27 $1
PV ON 17941.6100 SHARES DUE 9/15/2022 $0.00571/PV ON
3,140,000.00 PV DUE 9/15/22
INTEREST EARNED ON MERCEDES BENZ AUTO 0.400% 11/15/24 $1
PV ON 1105.0000 SHARES DUE 9/15/2022 $0.00033/PV ON
3,315,000.00 PV DUE 9/15/22
INTEREST EARNED ON NISSAN AUTO 1.930% 7/15/24 $1 PV ON
1763.2400 SHARES DUE 9/15/2022 $0.00161/PV ON 1,096,316.63 PV
DUE 9/15/22
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date CUSIP Id Net Cash Amt
Price Units Cost Gain Loss
9/15/2022
43815BAC4
6,157.00
0.000000
0.00
0.00
0.00
9/15/2022
44934KAC8
1,912.67
0.000000
0.00
0.00
0.00
9/15/2022
44891 VAC5
1,142.63
0.000000
0.00
0.00
0.00
9/15/2022
44891 WAC3
2,798.50
0.000000
0.00
0.00
0.00
9/15/2022
44933LAC7
665.00
0.000000
0.00
0.00
0.00
9/15/2022
448977ADO
7,955.00
0.000000
0.00
0.00
0.00
9/15/2022
44935FAD6
986.67
0.000000
0.00
0.00
0.00
9/15/2022
47789QAC4
1,222.00
0.000000
0.00
0.00
0.00
9/15/2022
47788UAC6
690.00
0.000000
0.00
0.00
0.00
9/15/2022
47787NAC3
338.28
0.000000
0.00
0.00
0.00
9/15/2022
47787JAC2
5,819.33
0.000000
0.00
0.00
0.00
9/15/2022
47800AAC4
17,941.61
0.000000
0.00
0.00
0.00
9/15/2022
58769KAD6
1,105.00
0.000000
0.00
0.00
0.00
9/15/2022
65479JAD5
1,763.24
0.000000
0.00
0.00
0.00
21 of 25
Table of Contents
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Transaction Type
Entry Date CUSIP Id Net Cash Amt
INTEREST EARNED ON TOYOTA AUTO RECV 0.440% 10/15/24 $1 PV
9/15/2022 89237VAB5 612.88
ON 612.8800 SHARES DUE 9/15/2022 $0.00037/PV ON 1,671,495.81 PV
DUE 9/15/22
INTEREST EARNED ON U S TREASURY NT 0.375% 9/15/24 $1 PV ON
9/15/2022 91282CCX7 19,687.50
10500000.0000 SHARES DUE 9/15/2022
INTEREST EARNED ON VIRGINIA ELEC PWR 2.750% 3/15/23 $1 PV
9/15/2022 927804FN9 27,500.00
ON 2000000.0000 SHARES DUE 9/15/2022
INTEREST EARNED ON GM FIN CONS ALIT 3.100% 2/16/27 $1 PV ON
9/16/2022 362585AC5 6,019.17
6019.1700 SHARES DUE 9/16/2022 $0.00258/PV ON 2,330,000.00 PV
DUE 9/16/22
INTEREST EARNED ON GM FIN CONS AUTO 0.680% 9/16/26 $1 PV
9/16/2022 362554AC1 966.17
ON 966.1700 SHARES DUE 9/16/2022 $0.00057/PV ON 1,705,000.00 PV
DUE 9/16/22
INTEREST EARNED ON GM FIN CONS AUTO 1.260% 11/16/26 $1 PV
9/16/2022 380146AC4 1,669.50
ON 1669.5000 SHARES DUE 9/16/2022 $0.00105/PV ON 1,590,000.00
PV DUE 9/16/22
INTEREST EARNED ON BLACKROCK INC 3.500% 3/18/24 $1 PV ON
9/19/2022 09247XAL5 17,500.00
1000000.0000 SHARES DUE 9/18/2022
INTEREST EARNED ON HONDA AUTO 0.370% 10/18/24 $1 PV ON
9/19/2022 43813KAC6 715.14
715.1400 SHARES DUE 9/18/2022 $0.00031/PV ON 2,319,391.25 PV
DUE 9/18/22
INTEREST EARNED ON SCHWAB CHARLES 0.750% 3/18/24 $1 PV
9/19/2022 808513BN4 10,443.75
ON 2785000.0000 SHARES DUE 9/18/2022
INTEREST EARNED ON WALMART INC 1.050% 9/17/26 $1 PV ON
9/19/2022 931142ER0 9,056.25
1725000.0000 SHARES DUE 9/17/2022
INTEREST EARNED ON G N M A I I #080023 1.750% 12/20/26 $1 PV ON
9/20/2022 36225CAZ9 10.69
10.6900 SHARES DUE 9/20/2022 AUGUST GNMA DUE 9/20/22
INTEREST EARNED ON G N M A I I #080088 3.000% 6/20/27 $1 PV ON
9/20/2022 36225CC20 13.82
13.8200 SHARES DUE 9/20/2022 AUGUST GNMA DUE 9/20/22
INTEREST EARNED ON G N M A I I #080395 2.875% 4/20/30 $1 PV ON
9/20/2022 36225CNM4 7.45
7.4500 SHARES DUE 9/20/2022 AUGUST GNMA DUE 9/20/22
INTEREST EARNED ON G N M A I I #080408 2.875% 5/20/30 $1 PV ON
9/20/2022 36225CN28 63.18
63.1800 SHARES DUE 9/20/2022 AUGUST GNMA DUE 9/20/22
INTEREST EARNED ON G N M A I I #080965 1.625% 7/20/34 $1 PV ON
9/20/2022 36225DCB8 28.61
28.6100 SHARES DUE 9/20/2022 AUGUST GNMA DUE 9/20/22
INTEREST EARNED ON GM FIN AUTO LSNG 3.420% 6/20/25 $1 PV
9/20/2022 36266FAC3 8,649.75
ON 8649.7500 SHARES DUE 9/20/2022 $0.00285/PV ON 3,035,000.00
PV DUE 9/20/22
INTEREST EARNED ON GM FIN AUTO LSNG TR 1.900% 3/20/25 $1 PV
9/20/2022 36265MAC9 7,948.34
ON 7948.3400 SHARES DUE 9/20/2022 $0.00158/PV ON 5,020,000.00
PV DUE 9/20/22
Price
Units
Cost
Gain Loss
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
22 of 25
Table of Contents
Transaction Type
INTEREST EARNED ON TOYOTA LEASE OWNER 0.420% 10/21/24 $1
PV ON 1114.7500 SHARES DUE 9/20/2022 $0.00035/PV ON
3,185,000.00 PV DUE 9/20/22
INTEREST EARNED ON TOYOTA LEASE OWNER 1.960% 2/20/25 $1
PV ON 10004.1600 SHARES DUE 9/20/2022 $0.00163/PV ON
6,125,000.00 PV DUE 9/20/22
INTEREST EARNED ON VERIZON MASTER TR 4.836% 7/20/27 $1 PV
ON 11082.5000 SHARES DUE 9/20/2022 $0.00403/PV ON 2,750,000.00
PV DUE 9/20/22
INTEREST EARNED ON HONDA AUTO 0.270% 4/21/25 $1 PV ON
338.0000 SHARES DUE 9/21/2022 $0.00023/PV ON 1,502,209.11 PV
DUE 9/21/22
INTEREST EARNED ON HONDA AUTO REC 0.880% 1/21/26 $1 PV
ON 1679.3300 SHARES DUE 9/21/2022 $0.00073/PV ON 2,290,000.00
PV DUE 9/21/22
INTEREST EARNED ON TOYOTA MOTOR MTN 3.050% 3/22/27 $1 PV
ON 2000000.0000 SHARES DUE 9/22/2022
PAID ACCRUED INTEREST ON PURCHASE OF DEERE JOHN MTN
4.150% 9/15/27
INTEREST EARNED ON BANK NOVA C D 0.200% 9/23/22 $1 PV ON
4000000.0000 SHARES DUE 9/23/2022 INTEREST ON 9/23/22 MATURITY
INTEREST EARNED ON F H L M C M T N 0.375% 9/23/25 $1 PV ON
7660000.0000 SHARES DUE 9/23/2022
INTEREST EARNED ON INTER AMER BK M T N 0.500% 9/23/24 $1 PV
ON 10775000.0000 SHARES DUE 9/23/2022
INTEREST EARNED ON AMRESCO 3.60934% 6/25/29 $1 PV ON
350.7800 SHARES DUE 9/25/2022 $0.00301/PV ON 116,624.77 PV DUE
9/25/22
INTEREST EARNED ON BMW VEH OWNER TR 3.210% 8/25/26 $1 PV
ON 6767.7500 SHARES DUE 9/25/2022 $0.00268/PV ON 2,530,000.00
PV DUE 9/25/22
INTEREST EARNED ON BMW VEHICLE LEASE 0.330% 12/26/24 $1 PV
ON 569.2500 SHARES DUE 9/25/2022 $0.00027/PV ON 2,070,000.00 PV
DUE 9/25/22
INTEREST EARNED ON BMW VEHICLE LEASE 1.100% 3/25/25 $1 PV
ON 2200.0000 SHARES DUE 9/25/2022 $0.00092/PV ON 2,400,000.00
PV DUE 9/25/22
INTEREST EARNED ON F H L B GTD REMIC 3.171% 10/25/24 $1 PV
ON 13212.5000 SHARES DUE 9/25/2022 $0.00264/PV ON 5,000,000.00
PV DUE 9/25/22
INTEREST EARNED ON F H L M C MLTCL MT 9.50001 % 9/25/43 $1 PV
ON 2302.7000 SHARES DUE 9/25/2022 $0.00542/PV ON 425,113.51 PV
DUE 9/25/22
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
9/20/2022
89239CAC3
1,114.75
9/20/2022
89238LAC4
10,004.16
9/20/2022
92348KAV5
11,082.50
9/21/2022
43813GAC5
338.00
9/21/2022
43815GAC3
1,679.33
9/22/2022
89236TJZ9
30,500.00
9/22/2022
24422EWK1
(3,227.78)
9/23/2022
06417MRR8
8,022.22
9/23/2022
3137EAEX3
14,362.50
9/23/2022
4581XODZ8
26,937.50
9/26/2022
03215PFN4
350.78
9/26/2022
05602RAD3
6,767.75
9/26/2022
09690AAC7
569.25
9/26/2022
05601 XAC3
2,200.00
9/26/2022
3137BFE98
13,212.50
9/26/2022
31394JY35
2,302.70
Price
Units
Cost
Gain Loss
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
0.000000
0.00
0.00
0.00
23 of 25
Table of Contents
Transaction Type
INTEREST EARNED ON F H L M C MLTCL MTG 3.120% 9/25/26 $1 PV
ON 13000.0000 SHARES DUE 9/25/2022 $0.00260/PV ON 5,000,000.00
PV DUE 9/25/22
INTEREST EARNED ON F N M A #257179 4.500% 4/01/28 $1 PV ON
21.7500 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #357969 5.000% 9/01/35 $1 PV ON
186.5800 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #745580 5.000% 6/01/36 $1 PV ON
189.0100 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #748678 5.000% 10/01/33 $1 PV ON
3.1400 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #815971 5.000% 3/01/35 $1 PV ON
278.1100 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #823358 1.948% 2/01/35 $1 PV ON
45.3300 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #826080 5.000% 7/01/35 $1 PV ON
37.1000 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #888336 5.000% 7/01/36 $1 PV ON
308.3900 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #AL0869 4.500% 6/01/29 $1 PV ON
15.0400 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A #MA0022 4.500% 4/01/29 $1 PV ON
25.8200 SHARES DUE 9/25/2022 AUGUST FNMA DUE 9/25/22
INTEREST EARNED ON F N M A GTD REMIC 2.472% 2/25/41 $1 PV
ON 208.2900 SHARES DUE 9/25/2022 $0.00260/PV ON 80,017.24 PV
DUE 9/25/22
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
2.750% 4/30/27
BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -
728.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI
FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -
728.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI
PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT
3.125% 8/15/25
PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -
728.0000 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
0.125% 12/15/23
RECEIVED ACCRUED INTEREST ON SALE OF U S TREASURY NT
0.750% 12/31/23
STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY -
728.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date
CUSIP Id
Net Cash Amt
Price
Units
Cost
Gain Loss
9/26/2022
3137BSRE5
13,000.00
0.000000
0.00
0.00
0.00
9/26/2022
31371NUC7
21.75
0.000000
0.00
0.00
0.00
9/26/2022
31376KT22
186.58
0.000000
0.00
0.00
0.00
9/26/2022
31403DJZ3
189.01
0.000000
0.00
0.00
0.00
9/26/2022
31403GXF4
3.14
0.000000
0.00
0.00
0.00
9/26/2022
31406PQY8
278.11
0.000000
0.00
0.00
0.00
9/26/2022
31406XWT5
45.33
0.000000
0.00
0.00
0.00
9/26/2022
31407BXH7
37.10
0.000000
0.00
0.00
0.00
9/26/2022
31410F4V4
308.39
0.000000
0.00
0.00
0.00
9/26/2022
3138EG6F6
15.04
0.000000
0.00
0.00
0.00
9/26/2022
31417YAY3
25.82
0.000000
0.00
0.00
0.00
9/26/2022
31397QRE0
208.29
0.000000
0.00
0.00
0.00
9/27/2022
91282CEN7
(56,046.20)
0.000000
0.00
0.00
0.00
9/28/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
9/28/2022
912828WU0
0.00
0.000000
0.00
(728.00)
0.00
9/28/2022
91282CFE6
(18,682.07)
0.000000
0.00
0.00
0.00
9/28/2022
912828WU0
0.00
0.000000
(728.00)
0.00
0.00
9/28/2022
91282CBA8
358.61
0.000000
0.00
0.00
0.00
9/28/2022
91282CDR9
4,585.60
0.000000
0.00
0.00
0.00
9/28/2022
912828WU0
0.00
0.000000
0.00
0.00
0.00
24 of 25
Table of Contents
Transaction Type
INTEREST EARNED ON U S TREASURY BILL 9/29/22 $1 PV ON
28000000.0000 SHARES DUE 9/29/2022 28,000,000 PAR VALUE AT 100 %
PAID ACCRUED INTEREST ON PURCHASE OF F H L M C M T N
0.250% 6/26/23
CASH DISBURSEMENT PAID TO OCS OUTGOING DOMESTIC WIRE
TO XX9645; PER DIR DTD 9/27/2022
INTEREST EARNED ON U S TREASURY NT 0.250% 9/30/25 $1 PV ON
6500000.0000 SHARES DUE 9/30/2022
INTEREST EARNED ON U S TREASURY NT 0.750% 3/31/26 $1 PV ON
10000000.0000 SHARES DUE 9/30/2022
INTEREST EARNED ON U S TREASURY NT 1.500% 9/30/24 $1 PV ON
14000000.0000 SHARES DUE 9/30/2022
Total Other
U.S. Bank Transaction History
07/01 /22 - 09/30/22
Entry Date CUSIP Id Net Cash Amt
9/29/2022
912796U64
9/29/2022
3137EAES4
9/30/2022
9/30/2022
91282CAM3
9/30/2022
91282CBT7
9/30/2022
912828YH7
135,238.06
(807.29)
(30,000,000.00)
8,125.00
37,500.00
105,000.00
(71,852,539.12)
Price
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
Units
0.00
0.00
0.00
0.00
0.00
0.00
Cost
0.00
0.00
0.00
0.00
0.00
0.00
Gain Loss
0.00
0.00
0.00
0.00
0.00
316,368.00 316,368.00 -
25 of 25
Table of Contents
I I
Callan
September 30, 2022
Orange County Sanitation District
Investment Measurement Service
Quarterly Review
Information contained herein includes confidential, trade secret and proprietary information. Neither this Report nor any specific information contained herein is
to be used other than by the intended recipient for its intended purpose or disseminated to any other person without Callan's permission. Certain information
herein has been compiled by Callan and is based on information provided by a variety of sources believed to be reliable for which Callan has not necessarily
verified the accuracy or completeness of or updated. This content may consist of statements of opinion, which are made as of the date they are expressed and
are not statements of fact. This content is for informational purposes only and should not be construed as legal or tax advice on any matter. Any decision you
make on the basis of this content is your sole responsibility. You should consult with legal and tax advisers before applying any of this information to your
particular situation. Past performance is no guarantee of future results. For further information, please see the Appendix section in your investment
measurement service quarterly review report for Important Information and Disclosures.
Table of Contents
Orange County Sanitation District
Executive Summary for Period Ending September 30, 2022
Asset Allocation
September 30, 2022 June 30, 2022
Market Value Weight Net New Inv. Inv. Return Market Value Weight
Chandler Long Term Operating Fund 699,920,416 86.48% 0 (13,547,207) 713,467,623 79.51%
Chandler Liquid Operating Monies 109,469,457 13.52% (75,000,000) 582,096 183,887,361 20.491%
Total Fund $809,389,873 100.0% $(75,000,000) $(12,965,111) $897,354,984 100.0%
Performance
Last
Last
Last
Last
Last
3
5
7
Quarter
Year
Years
Years
Years
Domestic Fixed Income
Long Term Operating Fund"
(1.90%)
(6.28%)
(0.60%)
0.74%
0.90%
Chandler
(1.90%)
(6.28%)
(0.60%)
0.74%
0.90%
Blmbg Govt/Cred 1-5 Year Idx
(2.16%)
(7.29%)
(0.90%)
0.55%
0.76%
ML 1-5 Govt/Corp
(2.21 %)
(7.32%)
(0.90%)
0.57%
0.78%
Liquid Operating Monies" 0.39% 0.40% 0.63% 1.19% 1.01 %
Chandler 0.39% 0.40% 0.63% 1.19% 1.01 %
Citigroup 3-Month Treasury Bill 0.45% 0.63% 0.57% 1.13% 0.92%
Total Fund (1.56%) (5.13%) (0.40%) 0.82% 0.87%
Target* (1.67%) (5.76%) (0.60%) 0.68% 0.81%
* Current Quarter Target = 80.0% MIL 1-5 Govt/Corp and 20.0% FTSE 3mo T-Bills.
^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Recent Developments
During the quarter, $75 million was withdrawn from the Liquid Operating Monies.
Organizational Issues
N/A
Fixed Income Market Snapshot
The Bloomberg Municipal Bond Index fell 3.5% for the quarter and is down 12.1 % YTD. The
shorter duration 1-10 Year Blend fell 2.3% for the quarter and is down 7.7% YTD. The ratio of
AAA Municipal yields to the 10-year U.S. Treasury fell to 86%, down from 92% at the end of 2Q.
The 4.0% yield -to -worst of the Bloomberg Municipal Bond Index is the highest since 2009.
The 10-year U.S. Treasury briefly touched an intra-quarter high of 4.0% in late September, the
highest since 2008, before closing the quarter at 3.8%. At quarter -end, the yield curve was
inverted by about 40 bps with the 10-year at 3.8% and the 2-year at 4.2%. The Bloomberg U.S.
Aggregate Bond Index fell 4.8% in 3Q, bringing its YTD return to a startling-14.6%, a historical
Table of Contents
Callan
Orange County Sanitation District
worst for the first nine months of a year. Notably, the sharp sell-off has eroded gains over the
past 10 years; the Aggregate's 10-year annualized gain is now a muted 0.9%. Mortgages and
corporates underperformed U.S. Treasuries, with mortgage -backed securities doing especially
poorly, underperforming like -duration U.S. Treasuries by 160 bps on poor technicals and rising
rates. The yield -to -worst of the Aggregate Index climbed to 4.75%, up sharply from 1.75% at the
beginning of the year. TIPS (Bloomberg TIPS: -5.1%; -13.6% YTD) were not immune from the
sell-off. High yield corporates (Bloomberg High Yield: -0.6%) fared better, but the Index is down
a similar 14.7% YTD. The yield -to -worst was 9.7% as of quarter -end.
Investment Manager Performance
The Long Term Operating Fund recorded a loss of 1.90% in the third quarter, which
outperformed the 2.21% decline of the ICE Corp/Gov 1-5 Year Index. Over the trailing one-year
period, the portfolio also outperformed its benchmark, declining 6.28% versus a 7.32% loss for
the index. The fund ranks in the bottom quartile among peers over the trailing one-, three-, five-,
and seven-year periods.
Rising interest rates continued to plague fixed income portfolios in the third quarter. Treasury
yields rose across the curve and credit spreads widened in the third quarter. The Long Term
Operating Fund benefited from a higher quality bias compared to the benchmark during the
period. The two largest sector adjustments in the quarter were an increase of 1.1 % to corporate
credit and a 0.9% reduction to the money market. The portfolio had less than 30% invested in
credit (26%) and less than the permissible 20% invested in the combination of asset -backed
securities (12%), commercial mortgage backed securities (0%), and CMOs (2%) as of
September 30, 2022 (see page 20).
The Liquid Operating Portfolio declined by 35 basis points in the third quarter, trailing the
Citigroup 3-Month Treasury Bill Index's return of 0.45%. Over the trailing year, the fund has
returned 0.25%, behind the index's return of 0.63%.
Cordially,
Alexander Ford
Vice President, Fund Sponsor Consulting
Callan LLC
Table of Contents
Table of Contents
September 30, 2022
Capital Market Review
1
Active Management Overview
Market Overview
7
Domestic Fixed Income
8
Asset Allocation
Investment Manager Returns
11
Asset Class Risk and Return
15
Manager Analysis
Chandler -Long Term Operating Fund
17
Chandler -Liquid Operating Money
21
Callan Research/Education
23
Definitions
26
Callan
Table of Contents
Capital Market Review
Table of Contents
Capital Markets Overview
3Q22
U.S. EQUITY
Worst three-quarter start to year in decades
The S&P 500 Index fell 4.9% in 3Q22; all major U.S. indices
across styles and market cap ranges were negative except
for the Russell 2000 Growth Index, which gained 0.24%.
During the quarter, all sectors posted negative returns
except for Energy (+2%) and Consumer Discretionary
(+4%). The return for Consumer Discretionary was aided by
an exceptional July when the sector was up more than 18%
Returns for Real Estate and Communication Services were
the worst, down 11 % and 13%, respectively.
Small cap (Russell 2000) outpaced large cap (Russell 1000)
and growth outperformed value during the quarter, a
reversal from previous quarters this year.
Continued concerns around inflation and a potential
recession, along with geopolitical headlines, contributed to a
volatile and risk -averse environment.
More market difficulties; no place to hide
The pullback of the U.S. equity markets was reminiscent of
other periods marked by bearish sentiment, such as 2008
(Global Financial Crisis) and 2020 (start of pandemic).
High inflation and interest rates continued to pressure the
markets. While some inflationary data (particularly around
energy) seemed to soften, other data points around food,
shelter, and services remained elevated.
U.S. equity did not provide a safe haven for investors. Like
most other asset classes, it has not generated YTD gains
and continues to be overshadowed by the outsized
outperformance of commodities.
`Relief rally' but not for active managers
The market experienced a "relief rally" in late June to August
based on optimism that inflation had peaked, lessening the
urgency for continued rate hikes.
The rally was marked by a rebound of cyclical growth
companies, and unprofitable companies outperformed
profitable companies by wide margins across caps. Active
managers underperformed significantly during this period.
S&P Sector Returns, Quarter Ended 9/30/22
4.4%
-12.7%
9 qo/
U.S. Equity: Quarterly Returns
Russell3000 -4.5%
Russell 1000 -4.6%
Russell 1000 Growth -3.6%
Russell 1000 Value -5.6% ■
S&P 500 -4.9% I
Russell Midcap
Russell 2500
Russell 2000
U.S. Equity: One -Year Returns
-3.4 %
-2.8%
-2.2%
Russell3000 -17.6% W
Russell 1000
-17.2%
Russell 1000 Growth
-22.6% N&
Russell 1000 Value
-11.4%
S&P 500
-15.5%
Russell Midcap -19.4%
Russell 2500 -21.1 %
Russell 2000 -23.5%
Sources: FTSE Russell, S&P Dow Jones Indices
-11.0%
Communication Consumer Consumer Energy Financials Health Care Industrials Information Materials Real Estate Utilities
Services Discretionary Staples Technology
Source: S&P Dow Jones Indices
Callan
Table of Contents
Capital Markets Overview (continued)
3Q22
GLOBAL EQUITY
Market turmoil around the world
Global and global ex-U.S. equity markets waned for three
straight quarters due to inflation, rising rates, and fears of
global recession.
Geopolitical and macro factors plague market
Political instability in Italy and the U.K. as a result of prime
minister departures weighed on the market.
U.K. equities lost confidence as its newly elected prime
minister Liz Truss announced her economic policy.
China's COVID-19 lockdowns and growing concerns around
the property sector sapped sentiment and economic activity.
Growth vs. value switch places globally
Growth outpaced value in developed markets but lagged
value in emerging markets.
Rate -sensitive sectors in developed markets (e.g.,
Communication Services and Real Estate) were challenged
given the tightening cycle by global central banks.
The profitability of Chinese internet companies has
compressed due to lockdowns and regulation, and a cyclical
downturn in electronics weakened Taiwan and Korean
semiconductors.
U.S. dollar vs. other currencies
Growth and the interest rate differential as well as its safe -
haven status fueled the U.S. dollar to its highest level in
decades.
The dollar gained vs. the euro and the yen by about 6%.
The case for global ex-U.S. equities
Diversification: Global ex-U.S. equities remain a good
diversifier to other public markets investments.
Valuations/Yield: Valuation of U.S. stocks took off after the
Global Financial Crisis (GFC); many of the tailwinds have
dissipated -rates, inflation, and liquidity.
Developed ex-U.S. stocks continue to be undervalued and
currently provide a 1.6% yield premium to U.S. stocks (MSCI
EAFE 3.5% vs. S&P 500 1.9%).
Economic exposure: Emerging market and developing
economies' contribution to global GDP has increased while
advanced economies' share has steadily decreased since
the GFC.
U.S. companies do not provide significant exposure to non-
U.S. economies
Global Equity: Quarterly Returns
MSCI EAFE
-9.4%
MSCI ACWI
-6.8%
MSCI World
-6.2% _
MSCI ACWI ex USA
-9.9%
MSCI World ex USA
-9.2%
MSCI ACWI ex USA SC
-8.4%
MSCI World ex USA SC
-9.5%
MSCI Europe ex UK
-9.9%
MSCI United Kingdom
-10.8%
MSCI Pacific ex Japan
-8.8%
MSCI Japan -7.7%
MSCI Emerging Markets -11.6%
MSCI China -22.5%
MSCI Frontier Markets -6.5% -
Global Equity: One -Year Returns
MSCI EAFE -25.1 %
MSCI ACWI -20.7%
MSCI World -19.6%
MSCI ACWI ex USA -25.2%
MSCI World ex USA -23.9%
MSCI ACWI ex USA SC -28.9%
MSCI World ex USA SC -30.8%
MSCI Europe ex UK -27.8%
MSCI United Kingdom
MSCI Pacific ex Japan
MSCI Japan -29.3%
MSCI Emerging Markets -28.1%
MSCI China -35.4%
-14.1%
-18.8% -
MSCI Frontier Markets -25.2%
Source: MSCI
Callan
Table of Contents
Capital Markets Overview (continued)
3Q22
U.S. FIXED INCOME
Bonds hit hard as rates rose sharply (again)
Bloomberg US Aggregate saw its worst nine -month return in
its history —as did trailing 1-, 3-, 5- and 10-year returns!
10-year annualized return for Aggregate is a mere 0.9%.
Yield curve inverted at quarter -end; 10-year at 3.83% and 2-
year at 4.22%
10-year at 4% briefly in late September; first time since 2009
TIPS underperformed nominal Treasuries, and 10-year
breakeven spreads fell to 2.11 % from 2.33% as of 6/30/22.
Fed raised rates by 150 bps during the quarter, bringing
target to 3.0% to 3.25%.
Median expectation from Fed is 4.4% at year-end and 4.6%
at the end of 2023.
Longer -term expectations are much lower.
Volatility climbed to levels not seen since early 2020.
Spread sectors underperformed
Mortgages had worst month ever vs. like -duration U.S.
Treasuries in September; underperformed by 169 bps for
3Q.
Corporates also underperformed: 33 bps of excess return;
Bloomberg Corporate Bond Index yield -to -worst 5.7%
High yield fared better and loans posted a positive return.
Bloomberg High Yield Corp yield -to -worst 9.7%
MUNICIPAL BONDS
Municipal bond returns hurt by rising rates
Lower quality continued to underperform.
BBB: -4.1 %; AAA: -3.5% (YTD BBB:-14.9%; AAA:-11.7%)
Valuations relative to U.S. Treasuries at fair value
10-year AAA Muni/1 0-year U.S. Treasury yield ratio roughly
87%; in line with 10-year average
Municipal Bond Index after-tax yield = 6.8% (source: Morgan
Stanley)
Supply/demand
Outflows of $91.5 billion YTD—highest cycle outflow since
data series began in 1992
YTD issuance down 14% vs. last year
Credit quality remains stable to improving
State revenues up more than 18% vs. 2021
Number of defaults lower than 2021 and concentrated in
senior living and industrial revenue bonds
U.S. Fixed Income: Quarterly Returns
Bloomberg Gov/Cr 1-3 Yr
Bloomberg Interm Gov/Cr
Bloomberg Aggregate
Bloomberg Long Gov/Cr -9.0%
Bloomberg Universal
CS Leveraged Loans
-4.5% =
14 1.2%
Bloomberg High Yield -0.6%
Bloomberg TIPS -5.1%
U.S. Fixed Income: One -Year Returns
Bloomberg Gov/Cr 1-3 Yr -5.1% ■
Bloomberg Interm Gov/Cr -10.1% _
Bloomberg Aggregate -14.6%
Bloomberg Long Gov/Cr -27.4%
Bloomberg Universal -14.9%
CS Leveraged Loans
-2.6%
-
Bloomberg High Yield -14.1 %
Bloomberg TIPS-11.6%
U.S. Treasury Yield Curves
t9/30/22 t6/30/22
9/30/21
5 10 15 20 25 30
Maturity (Years)
Sources: Bloomberg, Credit Suisse
Callan
Table of Contents
Capital Markets Overview (continued)
3Q22
GLOBAL FIXED INCOME
Negative returns driven by broad interest rate increases
U.S. dollar continued to appreciate vs. yen, euro, and pound
Bank of Japan intervened to support currency for first time
since 1998.
Pound hit record low vs. U.S. dollar
Double-digit negative returns were widespread across
developed markets.
U.K. government bonds were hard-hit on UK's "mini -budget"
fiasco.
ICE BofA U.K. Gilts Index -20.6% in 3Q
Emerging market debt returns also sharply negative
Most countries in the USD-denominated JPM EMBI Global
Diversified Index posted negative returns, hurt by rising rates
in the U.S.
JPM GBI-EM Global Diversified also fell due largely to EM
currency depreciation vs. the U.S. dollar.
Global Fixed Income: Quarterly Returns
Bloomberg Global Aggregate -6.9%
Bloomberg Global Agg (hdg) -3.3% ■
Bloomberg Global High Yield -2.7% ■
Bloomberg Global Agg ex US -8.8%
JPM EMBI Global Diversified
-4.6%
-
JPM GBI-EM Global Diversified
-4.7%
-
JPM EMBI GI Div/JPM GBI-EM GI Div
-4.6%
-
JPM CEMBI
-3.2% ■
Global Fixed Income: One -Year Returns
Bloomberg Global Aggregate -20.4% -
Bloomberg Global Agg (hdg)-12.1%.
Bloomberg Global High Yield -19.7%
Bloomberg Global Agg ex US -24.8% -
JPM EMBI Global Diversified -24.3%
JPM GBI-EM Global Diversified -20.6%
JPM EMBI GI Div/JPM GBI-EM GI Div -22.5% wr�
JPM CEMBI -18.9% F
Change in 10-Year Global Government Bond Yields
2Q22 to 3Q22
U.S. Treasury
Germany
U.K.
Canada -5 bps'
Japan 11 bps
Sources: Bloomberg, JP Morgan
Callan
Table of Contents
Active Management Overview
Table of Contents
Market Overview
Active Management vs Index Returns
Market Overview
The charts below illustrate the range of returns across managers in Callan's Separate Account database over the most
recent one quarter and one year time periods. The database is broken down by asset class to illustrate the difference in
returns across those asset classes. An appropriate index is also shown for each asset class for comparison purposes. As an
example, the first bar in the upper chart illustrates the range of returns for domestic equity managers over the last quarter.
The triangle represents the S&P 500 return. The number next to the triangle represents the ranking of the S&P 500 in the
Large Cap Equity manager database.
Range of Separate Account Manager Returns by Asset Class
One Quarter Ended September 30, 2022
10th Percentile
25th Percentile
Median
75th Percentile
90th Percentile
Index
(41)
(33)
(56)�
(81)�
(52)
(74)�
Large Cap
Small Cap
Non -US
Domestic
Non -US
Real
Equity
Equity
Equity
Fixed Income
Fixed Income
Estate
vs
vs
vs
vs
vs
vs
S&P 500
Russell 2000
MSCI EAFE
Blmbg Aggr Bd
Citi Non -US Govt
NCREIF Index
(3.07)
0.36
(7.39)
(4.24)
(6.46)
3.88
(3.78)
(1.51)
(8.48)
(4.39)
(7.81)
3.44
(4.65)
(3.10)
(9.30)
(4.56)
(9.03)
3.07
(5.61)
(4.62)
(10.43)
(4.70)
(10.03)
1.54
(6.97)
(5.95)
(11.47)
(4.87)
(10.36)
(0.80)
(4.88) (2.19) (9.36) (4.75) (9.95) 3.23
Range of Separate Account Manager Returns by Asset Class
One Year Ended September 30, 2022
40% -
30% -
20% -
10%
0%
7
.r
(10%) -
(20%) -
(30%) -
(40%) -
(50%) -
(46)
(46)
(69) ♦
(42)
(60)
(79)
10th Percentile
25th Percentile
Median
75th Percentile
90th Percentile
Index
Large Cap
Small Cap
Non -US
Domestic
Non -US
Real
Equity
Equity
Equity
Fixed Income
Fixed Income
Estate
vs
vs
vs
vs
vs
vs
S&P 500
Russell 2000
MSCI EAFE
Blmbg Aggr Bd
Citi Non -US Govt
NCREIF Index
(6.91)
(11.20)
(21.33)
(13.65)
(13.82)
27.86
(10.54)
(14.57)
(23.23)
(14.07)
(23.90)
24.63
(16.68)
(19.78)
(25.79)
(14.47)
(25.82)
17.91
(24.91)
(25.92)
(28.84)
(14.86)
(27.68)
8.85
(31.86)
(32.71)
(34.00)
(15.48)
(29.52)
5.08
(15.47) (23.50) (25.13) (14.60) (28.27) 19.15
Callan
Orange County Sanitation District 7
Table of Contents
Domestic Fixed Income
Active Management Overview
The 10-year U.S. Treasury briefly touched an intra-quarter high of 4.0% in late September, the highest since 2008, before
closing the quarter at 3.83%. At quarter -end, the yield curve was inverted by about 40 bps. with the 10-year at 3.8% and the
2-year at 4.2%. The Bloomberg US Aggregate Bond Index fell 4.8% in 3Q, bringing its YTD loss to 14.6%, a historical worst
for the first nine months of a year. Mortgages and corporates underperformed U.S. Treasuries, with mortgage -backed
securities doing especially poorly, underperforming like -duration U.S. Treasuries by 160 bps on poor technicals and rising
rates. The yield -to -worst of the Aggregate Index climbed to 4.75%, up sharply from 1.75% at the beginning of the year. TIPS
(Bloomberg TIPS: -5.1%; -13.6% YTD) were not immune from the sell-off. High yield corporates (Bloomberg High Yield:
-0.6%) fared better, but the Index is down a similar 14.7% YTD.
Separate Account SWIP Groin Median Returns
for Quarter
5%
0%
(10%)
(15%)
Defensive Intermed Core Core Plus Extended Bank High Yield
Bond Maturity Loans
Separate Accniinf Stulc (:rnun Morlinn Rcfnrnc
for One Ye
0%
(5%)
(10%)
N (15%)
C
L
W
(20%)
(25%)
(30%)
(35%)
Callan
Defensive Intermed Core Core Plus Extended Bank High Yield
Bond Maturity Loans
Orange County Sanitation District 8
Table of Contents
Asset Allocation
Table of Contents
Investment Manager Asset Allocation
The table below contrasts the distribution of assets across the Fund's investment managers as of September 30, 2022, with
the distribution as of June 30, 2022. The change in asset distribution is broken down into the dollar change due to Net New
Investment and the dollar change due to Investment Return.
Asset Distribution Across Investment Managers
September 30, 2022 June 30, 2022
Market Value Weight Net New Inv. Inv. Return Market Value Weight
Chandler Long Term Operating Fund 699,920,416 86.48% 0 (13,547,207) 713,467,623 79.51 %
Chandler Liquid Operating Monies 109,469,457 13.52% (75,000,000) 582,096 183,887,361 20.49%
Total Fund
$809,389,873 100.0% $(75,000,000) $(12,965,111) $897,354,984 100.0%
Callan
Orange County Sanitation District 10
Table of Contents
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended September
30, 2022. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The
first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended September 30, 2022
Last Last Last
Last Last 3 5 7
Quarter Year Years Years Years
Domestic Fixed Income
Long Term Operating Fund
(1.90%)
(6.28%)
(0.60%)
0.74%
0.90%
Chandler
(1.90%)
(6.28%)
(0.60%)
0.74%
0.90%
Blmbg Govt/Cred 1-5 Year Idx
(2.16%)
(7.29%)
(0.90%)
0.55%
0.76%
ML 1-5 Govt/Corp
(2.21 %)
(7.32%)
(0.90%)
0.57%
0.78%
Liquid Operating Monies^
0.39%
0.40%
0.63%
1.19%
1.01 %
Chandler
0.39%
0.40%
0.63%
1.19%
1.01 %
Citigroup 3-Month Treasury Bill
0.45%
0.63%
0.57%
1.13%
0.92%
Total Fund (1.56%) (5.13%) (0.40%) 0.82% 0.87%
Target* (1.67%) (5.76%) (0.60%) 0.68% 0.81%
Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan
Orange County Sanitation District 11
Table of Contents
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods ended September
30, 2022. Negative returns are shown in red, positive returns in black. Returns for one year or greater are annualized. The
first set of returns for each asset class represents the composite returns for all the fund's accounts for that asset class.
Returns for Periods Ended September 30, 2022
Last
10
Years
Domestic Fixed Income
Long Term Operating Fund 0.80%
Blmbg Govt/Cred 1-5 Year Idx 0.88%
ML 1-5 Govt/Corp 0.91 %
Last Last
15 27
Years Years
2.20% 3.70%
2.01 % 3.52%
2.03% 3.54%
Liquid Operating Monies^ 0.75% 0.82% 2.36%
Citigroup 3-Month Treasury Bill 0.66% 0.65% 2.09%
Total Fund 0.76%
Target' 0.86%
1.92%
1.76%
Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
3.49%
3.26%
Callan
Orange County Sanitation District 12
Table of Contents
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund's accounts for that asset class.
12/2021-
9/2022
2021
2020
2019
2018
Domestic Fixed Income
Long Term Operating Fund
(5.68%)
(0.79%)
4.42%
4.70%
1.60%
Chandler
(5.68%)
(0.79%)
4.42%
4.70%
1.60%
Blmbg Govt/Cred 1-5 Year Idx
(6.62%)
(0.97%)
4.71 %
5.01 %
1.38%
ML 1-5 Govt/Corp
(6.68%)
(0.87%)
4.65%
5.08%
1.40%
Liquid Operating Monies^ 0.40% 0.15% 0.84% 2.39% 1.90%
Chandler 0.40% 0.15% 0.84% 2.39% 1.90%
Citigroup 3-Month Treasury Bill 0.62% 0.05% 0.58% 2.25% 1.86%
Total Fund (4.64%) (0.61%) 3.73% 4.26% 1.72%
Target* (5.24%) (0.68%) 3.82% 4.51 % 1.49%
Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan Orange County Sanitation District 13
Table of Contents
Investment Manager Returns
The table below details the rates of return for the Fund's investment managers over various time periods. Negative returns
are shown in red, positive returns in black. Returns for one year or greater are annualized. The first set of returns for each
asset class represents the composite returns for all the fund's accounts for that asset class.
12/2021-
9/2022
2021
2020
2019
2018
Domestic Fixed Income
Long Term Operating Fund
(5.68%)
(0.79%)
4.42%
4.70%
1.60%
Blmbg Govt/Cred 1-5 Year Idx
(6.62%)
(0.97%)
4.71 %
5.01 %
1.38%
ML 1-5 Govt/Corp
(6.68%)
(0.87%)
4.65%
5.08%
1.40%
Liquid Operating Monies^ 0.40% 0.15% 0.84% 2.39% 1.90%
Citiarouo 3-Month Treasury Bill 0.62% 0.05% 0.58% 2.25% 1.86%
Total Fund (4.64%) (0.61%) 3.73% 4.26% 1.72%
Target* (5.24%) (0.68%) 3.82% 4.51 % 1.49%
Current Quarter Target = 80.0% ICE Corp/Gov 1-5 Yr and 20.0% FTSE 3 Mo T-Bill.
^Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Callan Orange County Sanitation District 14
Table of Contents
Asset Class Risk and Return
The charts below show the seven year annualized risk and return for each asset class component of the Total Fund. The first
graph contrasts these values with those of the appropriate index for each asset class. The second chart contrasts them with
the risk and return of the median portfolio in each of the appropriate CAI comparative databases. In each case, the
crosshairs on the chart represent the return and risk of the Total Fund.
Seven Year Annualized Risk vs Return
Asset Classes vs Benchmark Indices
0.94%
0.92%
0.90%
0.88%
0.86%
F-
0.84%
N
ry
0.82%
0.80%
0.78%
0.76%
0.74%
•
•
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Standard Deviation
Seven Year Annualized Risk vs Return
Asset Classes vs Asset Class Median
1.30%
1.20%
1.10%
F-
1.00%
N
ry
0.90%
0.80%
r-
0.70%
0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2%
Standard Deviation
Callan Orange County Sanitation District 1 F
Table of Contents
Manager Analysis
Table of Contents
Long Term Operating Fund
Period Ended September 30, 2022
Investment Philosophy
Chandler Asset Management's Short Term Bond strategy is driven by quantitative models and focuses on active duration
management, sector selection and term structure. The strategy seeks to achieve consistent above -benchmark returns with
low volatility relative to the style's performance benchmark. The firm has a unique focus on high quality fixed income
management, and places risk control as a higher objective than return. Assets were transferred in kind to Chandler on
12/l/2014. Previous performance reflects PIMCO.
Quarterly Summary and Highlights
• Long Term Operating Fund's portfolio posted a (1.90)%
return for the quarter placing it in the 92 percentile of the
Callan Short Term Fixed Income group for the quarter and in
the 85 percentile for the last year.
• Long Term Operating Fund's portfolio outperformed the ICE
Corp/Gov 1-5 Yr by 0.31 % for the quarter and outperformed
the ICE Corp/Gov 1-5 Yr for the year by 1.04%.
Performance vs Callan Short Term Fixed Income (Gross)
6%
4%
2%
0%
(2%)
(4%)
(6%)
(8%)
0
Quarterly Asset Growth
Beginning Market Value $713,467,623
Net New Investment $0
Investment Gains/(Losses) $-13,547,207
Ending Market Value $699,920,416
42)� B�4
97 ♦ A 9
9)1"B 9
5)�A 8
3)�B 8
99)�g�g;
98)♦ B9
�A(8
97) ♦ ■ B(9
)
)
Last Quarter
Last
Last 3 Years
Last 5 Years
Last 7-3/4
Last 7 Years Last 10 Years Last 27 Years
Year
Years
10th Percentile
(0.70)
(3.84)
0.45
1.51
1.71
1.71
1.64
3.90
25th Percentile
(0.95)
(4.36)
0.22
1.22
1.40
1.36
1.41
3.68
Median
(1.17)
(4.90)
(0.07)
1.06
1.23
1.20
1.19
3.48
75th Percentile
(1.35)
(5.79)
(0.24)
0.89
1.12
1.02
1.05
3.27
90th Percentile
(1.88)
(6.57)
(0.52)
0.73
0.91
0.85
0.85
2.99
Long Term
Operating Fund •A
(1.90)
(6.28)
(0.60)
0.74
0.97
0.90
0.80
3.70
Blmbg Govt/Cred
1-5 Year Idx ■ B
(2.16)
(7.29)
(0.90)
0.55
0.88
0.76
0.88
3.52
ICE Corp/Gov 1-5 Yr ♦
(2.21)
(7.32)
(0.90)
0.57
0.91
0.78
0.91
3.54
0.8%
0.6%
0.4%
c
0.2%
N
0.0%
(0.2%)
N
ry
(0.4%)
(0.6%)
(0.8%)
Relative Return vs ICE Corp/Gov 1-5 Yr
15 2016 2017 2018 2019 2020 2021 2022
- Long Term Operating Fund
3.0%
2.5%
(n 2.0%
c
N
1.5%
1.0%
0.5%
0
Callan Short Term Fixed Income (Gross)
Annualized Seven Year Risk vs Return
1 2 3 4 5
Standard Deviation
Callan Orange County Sanitation District 17
Table of Contents
Long Term Operating Fund
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk -adjusted and unadjusted basis. The first chart illustrates the
manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager's ranking
relative to their style using various risk -adjusted return measures.
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Performance vs Callan Short Term Fixed Income (Gross)
8%
6%
4%
2%
0%
2%
4%
6%
8%
0
25p AB
9"B1
5;
87-1-0A
6�j.*6
76U]*A
4 B
OVA
B
97 W A( 5)
9
•A1
( " 12/21- 9/22
2021
2020
2019
10th Percentile (3.38)
0.74
5.11
5.47
25th Percentile (3.88)
0.14
4.62
4.95
Median (4.39)
(0.22)
3.96
4.52
75th Percentile (5.36)
(0.46)
3.58
4.06
90th Percentile (6.03)
(0.82)
2.43
3.57
Long Term
Operating Fund •A (5.68)
(0.79)
4.42
4.70
Blmbg Govt/Cred
1-5 Year Idx ■ B (6.62)
(0.97)
4.71
5.01
ICE Corp/Gov
1-5 Yr ♦ (6.68)
(0.87)
4.65
5.08
2018
2017
2016
2015
2014
2013
2.00
2.30
2.82
1.17
1.50
1.20
1.82
1.76
2.19
1.02
1.27
0.80
1.69
1.30
1.55
0.90
1.11
0.65
1.54
0.95
1.16
0.76
0.87
0.40
1.33
0.66
1.04
0.62
0.73
0.29
1.60 1.18 1.58 0.85 1.98 (1.77)
1.38 1.27 1.56 0.97 1.42 0.28
1.40 1.28 1.62 1.05 1.51 0.32
Cumulative and Quarterly Relative Returns vs ICE Corp/Gov 1-5 Yr
1.2%
1.0%
3 0.8%
0.6%
ry
0.4%
0.2%
N 0.0%
tY (0.2%)
i (0.4%)
(0.6%)
3 (0.8%)
L'f (1.0%)
(1.2%)
------- -------- -------- ------ -------- -------- ---------------- --------
--- ------- -------- -------- ------ -------- -------- ---------------- --------
--- ------- -------- -------- ------ J -------- ------- I --------
I= ------ ------ - ------ -------- -------- --------
12 2013 2014 2015 2016 2017 2018 2019 2020 2021
Long Term Operating Fund Blmbg Govt/Cred 1-5 Year Idx Callan Short Fixed Inc
Risk Adjusted Return Measures vs ICE Corp/Gov 1-5 Yr
Rankings Against Callan Short Term Fixed Income (Gross)
Seven Years Ended September 30, 2022
1.0
0.8
0.6
0.4
0.2
0.0
(0.2)
B 92
A(68)
•A78
■ B(100)
(0.4) Alpha
10th Percentile
0.86
25th Percentile
0.53
Median
0.36
75th Percentile
0.18
90th Percentile
0.01
Long Term Operating Fund •A
0.10
Blmbg Govt/Cred 1-5 Year Idx
(0.02)
Sharpe
Ratio
0.32
0.21
0.13
0.02
(0.06)
(0.02)
(0.08)
Excess Return
Ratio
0.63
0.49
0.34
0.24
0.07
0.28
(0.23)
2022
6%
5%
4%
3%
2%
1%
0%
(1 %)
(2%)
(3%)
(4%)
(5%)
(6%)
)
)0)
C7
C
3
C
y
N
m
iv
m
X
m
C
ul
Callan Orange County Sanitation District 18
Table of Contents
Long Term Operating Fund
Bond Characteristics Analysis Summary
Portfolio Characteristics
This graph compares the manager's portfolio characteristics with the range of characteristics for the portfolios which make up
the manager's style group. This analysis illustrates whether the manager's current holdings are consistent with other
managers employing the same style.
Fixed Income Portfolio Characteristics
Rankings Against Callan Short Term Fixed Income
as of September 30, 2022
7
6-
5-
4-
3-
2-
1
0
(6) (10)
(25) (29)
(79)
(72) (90)
(1)
Average
Effective
Coupon
OA
Duration
Life
Yield
Rate
Convexity
10th Percentile
2.40
2.96
5.80
3.20
0.08
25th Percentile
2.02
2.68
5.42
2.83
0.06
Median
1.77
2.14
5.05
2.35
0.04
75th Percentile
1.61
1.87
4.76
1.89
0.02
90th Percentile
0.95
1.34
4.30
1.70
(0.02)
Long Term
Operating Fund •
2.41
2.54
-
1.70
-
ICE Corp/Gov 1-5 Yr
2.53
2.68
4.58
2.04
0.09
Sector Allocation and Quality Ratings
The first graph compares the manager's sector allocation with the average allocation across all the members of the
manager's style. The second graph compares the manager's weighted average quality rating with the range of quality ratings
for the style.
US Trsy
Corp (incl 144A)
Gov Related
ABS
Other
CMOs
Cash
CMBS
RMBS
Sector Allocation
September 30, 2022
33.4
25.8
65.1
26.4
5
0.7
26.3
19.0
2.6
8.7
12.1
14.5
7.4
1.5
0.2
0.7
1111110 5.6
0.1
0% 10% 20% 30% 40% 50% 60% 70% 80%
Long Term Operating Fund Callan Short Term Fixed Income
ICE Corp/Gov 1-5 Yr
Quality Ratings
vs Callan Short Term Fixed Income
Trsy
AAA
AA+
AA
AA-
A+
A
A -
10th Percentile
25th Percentile
Median
75th Percentile
90th Percentile
Long Term
Operating Fund •
ICE Corp/Gov 1-5 Yr
Weighted Average
Quality Rating
AA+
AA
AA
A+
A
AA
AA
Callan Orange County Sanitation District 19
Table of Contents
Long Term Operating Fund
Portfolio Characteristics Summary
As of September 30, 2022
Portfolio Structure Comparison
The charts below compare the structure of the portfolio to that of the index from the three perspectives that have the greatest
influence on return. The first chart compares the two portfolios across sectors. The second chart compares the duration
distribution. The last chart compares the distribution across quality ratings.
ABS
12%
Other
7%
US Trsy
33%
Gov Related
19% CMOs
2%
Sector Allocation
Cash
0%
Corp (incl 144A)
26%
Corp (incl 144A)
26%
US Trsy
65%
v Related
9%
Long Term Operating Fund ML:Corp/Gov 1-5 Yr
Weighted Average: Duration
Duration Distribution 0 Long Term Operating Fund: 2.41
80% 0 ML:Corp/Gov 1-5 Yr: 2.53
O70%---------------------------------------- ------------- ----------------------------
61.9
O 60%------------- --------------- -
53?J------------- ----------------------------
d50%---------------------------------------- ----------------------------
0 40% -- 39=4--3fr4--------------- ----------------------------
C30%------------- -------------- ----------------------------
2 20%------------- -------------- ------------------------------
a)0-10%--6sr-------- -------------- ----------------------------
0% -
1.6 0.2 0.0 0.0 0.0 0.0 0.0
<1 1-3 3-5 5-7 7-10 >10
Years Duration
Quality Distribution
100% 1
Weighted Average: Quality
Long Term Operating Fund: AA
ML:Corp/Gov 1-5 Yr: AA
O
--------------- -
70.2
60%JLsik
60.1 --------------
0
40% --------------
° JB� ------
----------------------
� 12.3
0% 0.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 16 0.0
AAA AA A BBB BB B CCC CC C N/R
Quality Rating
Callan
Orange County Sanitation District 20
Table of Contents
Chandler -Liquid Operating Money
Period Ended September 30, 2022
Investment Philosophy
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Quarterly Summary and Highlights
• Liquid Operating Money Net's portfolio posted a 0.35%
return for the quarter placing it in the 69 percentile of the
Callan Money Market Funds group for the quarter and in the
65 percentile for the last year.
• Liquid Operating Money Net's portfolio underperformed the
Citigroup 3-Month Treasury Bill by 0.10% for the quarter and
underperformed the Citigroup 3-Month Treasury Bill for the
year by 0.39%.
Performance vs Callan Money Market Funds (Net)
3%
Quarterly Asset Growth
Beginning Market Value $183,887,361
Net New Investment $-75,000,000
Investment Gains/(Losses) $582,096
Ending Market Value $109,469,457
22)�(12
33)f?7�(69
13)
16) (28
20) " (28
25) � (29
26 ) � (30
18)"(25
(65
(3%)
Last Quarter
Last
Last 3 Years
Last 5 Years
Last 7-3/4
Last 7 Years Last 10 Years Last 27 Years
Year
Years
10th Percentile
0.53
0.67
0.66
1.27
1.18
1.26 0.97 2.28
25th Percentile
0.47
0.58
0.48
1.07
0.84
0.93 0.60 2.07
Median
0.41
0.47
0.40
0.92
0.65
0.72 0.50 1.93
75th Percentile
0.30
(0.74)
0.33
0.81
0.57
0.62 0.43 1.83
90th Percentile
(0.02)
(2.17)
0.12
0.65
0.47
0.52 0.34 1.72
Liquid Operating
Money Net •
0.35
0.25
0.47
1.04
0.78
0.86 0.60 2.21
Citigroup 3-Month
Treasury Bill ♦
0.45
0.63
0.57
1.13
0.84
0.92 0.66 2.09
Relative Returns
vs
Callan Money Market Funds (Net)
Citigroup 3-Month
Treasury Bill
Annualized Seven Year Risk vs Return
0.40%
0.30%
u� 0.20%
c
0.10%
N
0.00%
N
(0.10%)
(0.20%)
(0.30%)
5 2016 2017 2018 2019 2020 2021 2022
- Liquid Operating Money Net
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
(0.5%)
(1.0%)
0
0 1 2 3 4 5 6 7
Standard Deviation
Callan Orange County Sanitation District 21
Table of Contents
Liquid Operating Money Net
Return Analysis Summary
Return Analysis
The graphs below analyze the manager's return on both a risk -adjusted and unadjusted basis. The first chart illustrates the
manager's ranking over different periods versus the appropriate style group. The second chart shows the historical quarterly
and cumulative manager returns versus the appropriate market benchmark. The last chart illustrates the manager's ranking
relative to their style using various risk -adjusted return measures.
Assets were transferred in kind to Chandler on 12/1/2014. Previous performance reflects PIMCO.
Performance vs Callan Money Market Funds (Net)
4%
3%
2%
1%
0%
(1 %)
(2%)
3°/
27®28 12�23
26®24 30®35
t °)
12/21- 9/22
2021
2020
2019
10th Percentile
0.67
0.19
1.70
3.20
25th Percentile
0.57
0.04
0.62
2.32
Median
0.47
0.01
0.34
1.96
75th Percentile
(0.54)
0.01
0.27
1.76
90th Percentile
(1.96)
(0.03)
0.19
1.50
Liquid Operating
Money Net •
0.28
(0.00)
0.69
2.24
Citigroup 3-Month
Treasury Bill ♦
0.62
0.05
0.58
2.25
2018
2017
2016
2015
2014
2013
1.89
1.42
1.32
0.28
0.35
0.30
1.72
0.91
0.39
0.06
0.03
0.04
1.53
0.61
0.14
0.01
0.01
0.01
1.31
0.42
0.05
0.01
0.01
0.01
1.07
0.23
0.01
0.00
0.00
0.00
1.75 0.76 0.32 0.07 (0.06) (0.02)
1.86 0.84 0.27 0.03 0.03 0.05
Cumulative and Quarterly Relative Returns vs Citigroup 3-Month Treasury Bill
0.35% -
N
0.25% -
0.20% - ------------------------ - ---------------------
0.15% --- ------------- ----
N
0.10%--------------------------- - -----------------------------
0.05% ------------------ -
T
0.00%
-((0.05%) ------
--------------------- -
d (0.10%)----------------------------
-
12 2013 2014 2015 2016 2017 2018 2019 2020
Liquid Operating Money Net Callan Money Market Funds
Risk Adjusted Return Measures vs Citigroup 3-Month Treasury Bill
Rankings Against Callan Money Market Funds (Net)
Seven Years Ended September 30, 2022
2
1
0
(1)
(2)
(3)
4
2021 2022
•1 (32)
0.6%
0.4%
0.2% S.
v
(0.0%) c
(0.2%)
(0.4%)
iv
(0.6%)
(0.8%) CD
CJ
(1.0%)
c
(1.2%)
(1.4%)
()
Alpha
Sharpe
Excess Return
Ratio
Ratio
10th Percentile
0.72
0.23
0.28
25th Percentile
0.03
(0.04)
0.03
Median
(0.19)
(0.54)
(2.13)
75th Percentile
(0.29)
(0.85)
(2.99)
90th Percentile
(0.41)
(1.20)
(3.32)
Liquid Operating Money Net •
(0.10)
(0.20)
(0.43)
Callan
Orange County Sanitation District 22
Table of Contents
Callan Research/Education
Table of Contents
,nn,,0Callan I n s t i t u t e Education
2nd Quarter 2022
Quarterly Highlights
The Callan Institute provides research to update clients on the latest industry trends and carefully structured educational programs
to enhance the knowledge of industry professionals. Visit www.callan.com/research-library to see all of our publications, and
www.callan.com/blog to view our blog. For more information contact Barb Gerraty at 415-274-3093 / institute@callan.com.
New Research from Callan's Experts
Research Cafe: ESG Interview Series I Mark Wood of Callan dis-
cusses with Jon Hale, Director of ESG Strategy at Morningstar, the
evolving definition of sustainable investments.
Research Cafe: Private Equity I In this session, private equity ex-
perts Ashley Kahn and Jonathan Farr provide actionable insights
for institutional investors to help them negotiate with private equity
managers, and offer private equity managers crucial information
about how their peers determine fees and terms. This session also
includes a special feature on credit line usage.
Investinq in Data Centers: The Real Assets of the Diqital
Lauren Sertich discusses investing in data centers, a growing sec-
tor in which institutional investors have more investment options
as the universe of qualified managers/operators rapidly expands.
Do Active Fixed Income Managers Add Value With Sector
Rotation? I Kevin Machiz analyzes whether institutional investors
could take a DIY approach to strategic sector allocations and forego
sector rotation within fixed income and still achieve results compa-
rable to active managers. Our study found that the average manager
has added value with sector rotation.
Blog Highlights
SEC Proposes Rule to Enhance and Standardize Climate -
Related Disclosures I The U.S. Securities and Exchange
Commission unveiled its proposed rule amendments designed to
improve and standardize disclosures around climate change risks
for public companies.
Unprecedented Territory —and the Inherent Limits of
Diversification I Stock and bond markets around the globe were
down together for the first four months of 2022. How often does
that happen? Did diversification fail us?
Risina Interest Rates Spur Look at Structured Credit
Structured credit has seen increased interest from institutional in -
vestors as they explore ways to adapt their fixed income portfolios
for an expected environment of rising rates.
Hedge Fund Strategies: A Guide for Institutional Investors
Hedge fund strategies are beginning to see renewed interest
from institutional investors seeking diversification benefits and
downside protection. But these strategies can be complex; this
explainer educates investors about investing in these strategies.
Quarterly Periodicals
Private Equity Update, 1Q22 I A high-level summary of private
equity activity in the quarter through all the investment stages
Active vs. Passive Charts, 1Q22 I A comparison of active man-
agers alongside relevant benchmarks over the long term
Market Pulse Flipbook, 1Q22 I A quarterly market reference
guide covering trends in the U.S. economy, developments for insti-
tutional investors, and the latest data on the capital markets
Capital Markets Review, 1Q22 I Analysis and a broad overview
of the economy and public and private markets activity each quar-
ter across a wide range of asset classes
Hedge Fund Update, 1Q22 I Commentary on developments for
hedge funds and multi -asset class (MAC) strategies
Real Assets Update,1 Q22 I A summary of market activity for real
assets and private real estate during the quarter
Private Credit Update, 1Q22 I A review of performance and fun-
draising activity for private credit during the quarter
Research I Education I Dialogue
Table of Contents
Events
Education
A complete list of all upcoming events can be found on our web -
site: callan.com/events-education.
Please mark your calendar and look forward to upcoming invitations:
October Regional Workshop
Oct. 18, 2022 — Denver, CO
Oct. 20, 2022 — San Francisco, CA
2023 National Conference
April 2-4, 2023 —Scottsdale, AZ
For more information about events, please contact Barb
Gerraty: 415-274-3093 / gerraty@callan.com
Education: By the Numbers
50+ Unique pieces of research the
Institute generates each year
525 Attendees (on average) of the
Institute's annual National Conference
3 0 0 Total attendees of the "Callan
j7 College" since 1994
Founded in 1994, the "Callan College" offers educational sessions
for industry professionals involved in the investment decision -mak-
ing process.
Introduction to Investments
September 20-22 —Virtual
This program familiarizes institutional investor trustees and staff
and asset management advisers with basic investment theory, ter-
minology, and practices. Our virtual session is held over three days
with virtual modules of 2.5-3 hours, while the in -person session
lasts one -and -a -half days. This course is designed for individuals
with less than two years of experience with asset -management
oversight and/or support responsibilities. Virtual tuition is $950 per
person and includes instruction and digital materials. In -person
tuition is $2,350 per person and includes instruction, all materials,
breakfast and lunch on each day, and dinner on the first evening
with the instructors.
Additional information including registration can be found at:
callan.com/events/
"Research is the foundation of all we do at Callan, and sharing our
best thinking with the investment community is our way of helping
to foster dialogue to raise the bar across the industry."
Greg Allen, CEO and Chief Research Officer
Callan Institute V @CallanLLC ® Callan
Table of Contents
Definitions
Table of Contents
Risk/Reward Statistics
The risk statistics used in this report examine performance characteristics of a manager or a portfolio relative to a benchmark
(market indicator) which assumes to represent overall movements in the asset class being considered. The main unit of
analysis is the excess return, which is the portfolio return minus the return on a risk free asset (3 month T-Bill).
Alpha measures a portfolio's return in excess of the market return adjusted for risk. It is a measure of the manager's
contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively
rewarded for the residual risk which was taken for that level of market exposure.
Beta measures the sensitivity of rates of portfolio returns to movements in the market index. A portfolio's beta measures the
expected change in return per 1 % change in the return on the market. If a beta of a portfolio is 1.5, a 1 percent increase in
the return on the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would
also be true.
Downside Risk stems from the desire to differentiate between "good risk" (upside volatility) and "bad risk" (downside
volatility). Whereas standard deviation punishes both upside and downside volatility, downside risk measures only the
standard deviation of returns below the target. Returns above the target are assigned a deviation of zero. Both the frequency
and magnitude of underperformance affect the amount of downside risk.
Excess Return Ratio is a measure of risk adjusted relative return. This ratio captures the amount of active management
performance (value added relative to an index) per unit of active management risk (tracking error against the index.) It is
calculated by dividing the manager's annualized cumulative excess return relative to the index by the standard deviation of
the individual quarterly excess returns. The Excess Return Ratio can be interpreted as the manager's active risk/reward
tradeoff for diverging from the index when the index is mandated to be the "riskless" market position.
Information Ratio measures the manager's market risk -adjusted excess return per unit of residual risk relative to a
benchmark. It is computed by dividing alpha by the residual risk over a given time period. Assuming all other factors being
equal, managers with lower residual risk achieve higher values in the information ratio. Managers with higher information
ratios will add value relative to the benchmark more reliably and consistently.
R-Squared indicates the extent to which the variability of the portfolio returns are explained by market action. It can also be
thought of as measuring the diversification relative to the appropriate benchmark. An r-squared value of .75 indicates that
75% of the fluctuation in a portfolio return is explained by market action. An r-squared of 1.0 indicates that a portfolio's
returns are entirely related to the market and it is not influenced by other factors. An r-squared of zero indicates that no
relationship exists between the portfolio's return and the market.
Relative Standard Deviation is a simple measure of a manager's risk (volatility) relative to a benchmark. It is calculated by
dividing the manager's standard deviation of returns by the benchmark's standard deviation of returns. A relative standard
deviation of 1.20, for example, means the manager has exhibited 20% more risk than the benchmark over that time period.
A ratio of .80 would imply 20% less risk. This ratio is especially useful when analyzing the risk of investment grade
fixed -income products where actual historical durations are not available. By using this relative risk measure over rolling
time periods one can illustrate the "implied" historical duration patterns of the portfolio versus the benchmark.
Residual Portfolio Risk is the unsystematic risk of a fund, the portion of the total risk unique to the fund (manager) itself and
not related to the overall market. This reflects the "bets" which the manager places in that particular asset market. These
bets may reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager
considers a good investment opportunity. Diversification of the portfolio will reduce or eliminate the residual risk of that
portfolio.
Callan 27
Table of Contents
Risk/Reward Statistics
Rising Declining Periods refer to the sub -asset class cycles vis-a-vis the broader asset class. This is determined by
evaluating the cumulative relative sub -asset class index performance to that of the broader asset class index. For example,
to determine the Growth Style cycle, the S&P 500 Growth Index (sub -asset class) performance is compared to that of the
S&P 500 Index (broader asset class).
Sharpe Ratio is a commonly used measure of risk -adjusted return. It is calculated by subtracting the "risk -free" return
(usually 3 Month Treasury Bill) from the portfolio return and dividing the resulting "excess return" by the portfolio's risk level
(standard deviation). The result is a measure of return gained per unit of risk taken.
Sortino Ratio is a downside risk -adjusted measure of value-added. It measures excess return over a benchmark divided by
downside risk. The natural appeal is that it identifies value-added per unit of truly bad risk. The danger of interpretation,
however, lies in these two areas: (1) the statistical significance of the denominator, and (2) its reliance on the persistence of
skewness in return distributions.
Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their
sample mean. Standard deviation is used as an estimate of risk since it measures how wide the range of returns typically is.
The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns
are normally distributed (ie. has a bell shaped curve distribution) then approximately 2/3 of the returns would occur within
plus or minus one standard deviation from the sample mean.
Total Portfolio Risk is a measure of the volatility of the quarterly excess returns of an asset. Total risk is composed of two
measures of risk: market (non-diversifiable or systematic) risk and residual (diversifiable or unsystematic) risk. The purpose
of portfolio diversification is to reduce the residual risk of the portfolio.
Tracking Error is a statistical measure of a portfolio's risk relative to an index. It reflects the standard deviation of a
portfolio's individual quarterly or monthly returns from the index's returns. Typically, the lower the Tracking Error, the more
"index -like" the portfolio.
Treynor Ratio represents the portfolio's average excess return over a specified period divided by the beta relative to its
benchmark over that same period. This measure reflects the reward over the risk -free rate relative to the systematic risk
assumed.
Note: Alpha, Total Risk, and Residual Risk are annualized.
Callan
28
Table of Contents
Fixed Income Portfolio Characteristics
All Portfolio Characteristics are derived by first calculating the characteristics for each security, and then calculating the
market value weighted average of these values for the portfolio.
Allocation by Sector - Sector allocation is one of the tools which managers often use to add value without impacting the
duration of the portfolio. The sector weights exhibit can be used to contrast a portfolio's weights with those of the index to
identify any significant sector bets.
Average Coupon - The average coupon is the market value weighted average coupon of all securities in the portfolio. The
total portfolio coupon payments per year are divided by the total portfolio par value.
Average Moody's Rating for Total Portfolio - A measure of the credit quality as determined by the individual security
ratings. The ratings for each security, from Moody's Investor Service, are compiled into a composite rating for the whole
portfolio. Quality symbols range from Aaa+ (highest investment quality - lowest credit risk) to C (lowest investment quality -
highest credit risk).
Average Option Adjusted (Effective) Convexity - Convexity is a measure of the portfolio's exposure to interest rate risk. It
is a measure of how much the duration of the portfolio will change given a change in interest rates. Generally, securities with
negative convexities are considered to be risky in that changes in interest rates will result in disadvantageous changes in
duration. When a security's duration changes it indicates that the stream of expected future cash -flows has changed,
generally having a significant impact on the value of the security. The option adjusted convexity for each security in the
portfolio is calculated using models developed by Lehman Brothers and Salomon Brothers which determine the expected
stream of cash -flows for the security based on various interest rate scenarios. Expected cash -flows take into account any
put or call options embedded in the security, any expected sinking -fund paydowns or any expected mortgage principal
prepayments.
Average Option Adjusted (Effective) Duration - Duration is one measure of the portfolio's exposure to interest rate risk.
Generally, the higher a portfolio's duration, the more that its value will change in response to interest rate changes. The
option adjusted duration for each security in the portfolio is calculated using models developed by Lehman Brothers and
Salomon Brothers which determine the expected stream of cash -flows for the security based on various interest rate
scenarios. Expected cash -flows take into account any put or call options embedded in the security, any expected
sinking -fund paydowns or any expected mortgage principal prepayments.
Average Price - The average price is equal to the portfolio market value divided by the number of securities in the portfolio.
Portfolios with an average price above par will tend to generate more current income than those with an average price below
pa r.
Average Years to Expected Maturity - This is a measure of the market -value -weighted average of the years to expected
maturity across all of the securities in the portfolio. Expected years to maturity takes into account any put or call options
embedded in the security, any expected sinking -fund paydowns or any expected mortgage principal prepayments.
Average Years to Stated Maturity - The average years to stated maturity is the market value weighted average time to
stated maturity for all securities in the portfolio. This measure does not take into account imbedded options, sinking fund
paydowns, or prepayments.
Current Yield - The current yield is the current annual income generated by the total portfolio market value. It is equal to the
total portfolio coupon payments per year divided by the current total portfolio market value.
Callan
29
Table of Contents
Fixed Income Portfolio Characteristics
Duration Dispersion - Duration dispersion is the market -value weighted standard deviation of the portfolio's individual
security durations around the total portfolio duration. The higher the dispersion, the more variable the security durations
relative to the total portfolio duration ("barbellness"), and the smaller the dispersion, the more concentrated the holdings'
durations around the overall portfolio's ("bulletness"). The purpose of this statistic is to gauge the "bulletness" or
"barbellness" of a portfolio relative to its total duration and to that of its benchmark index.
Effective Yield - The effective yield is the actual total annualized return that would be realized if all securities in the portfolio
were held to their expected maturities. Effective yield is calculated as the internal rate of return, using the current market
value and all expected future interest and principal cash flows. This measure incorporates sinking fund paydowns, expected
mortgage principal prepayments, and the exercise of any "in -the -money" imbedded put or call options.
Weighted Average Life - The weighted average life of a security is the weighted average time to payment of all remaining
principal. It is calculated by multiplying each expected future principal payment amount by the time left to the payment. This
amount is then divided by the total amount of principal remaining. Weighted average life is commonly used as a measure of
the investment life for pass -through security types for comparison to non -pass -through securities.
Callan
30
Table of Contents
Disclosures
Table of Contents
Callan I
Quarterly List as of
June 30, 2022
List of Callan's Investment Manager Clients
Confidential — For Callan Client Use Only
Callan takes its fiduciary and disclosure responsibilities to clients very seriously. We recognize that there are numerous potential
conflicts of interest encountered in the investment consulting industry, and that it is our responsibility to manage those conflicts
effectively and in the best interest of our clients. At Callan, we employ a robust process to identify, manage, monitor, and disclose
potential conflicts on an ongoing basis.
The list below is an important component of our conflicts management and disclosure process. It identifies those investment managers
that pay Callan fees for educational, consulting, software, database, or reporting products and services. We update the list quarterly
because we believe that our fund sponsor clients should know the investment managers that do business with Callan, particularly those
investment manager clients that the fund sponsor clients may be using or considering using. Please note that if an investment manager
receives a product or service on a complimentary basis (e.g., attending an educational event), they are not included in the list below.
Callan is committed to ensuring that we do not consider an investment manager's business relationship with Callan, or lack thereof, in
performing evaluations for or making suggestions or recommendations to its other clients. Please refer to Callan's ADV Part 2A for a
more detailed description of the services and products that Callan makes available to investment manager clients through our
Institutional Consulting Group, Independent Adviser Group, and Fund Sponsor Consulting Group. Due to the complex corporate and
organizational ownership structures of many investment management firms, parent and affiliate firm relationships are not indicated on
our list.
Fund sponsor clients may request a copy of the most currently available list at any time. Fund sponsor clients may also request specific
information regarding the fees paid to Callan by particular fund manager clients. Per company policy, information requests regarding
fees are handled exclusively by Callan's Compliance department.
abrdn (Aberdeen Standard Investments)
Acadian Asset Management LLC
Adams Street Partners, LLC
AEGON USA Investment Management Inc.
AllianceBernstein
Allianz
Allspring Global Investments
American Century Investments
Amundi US, Inc.
Antares Capital LP
AQR Capital Management
Ares Management LLC
Ariel Investments, LLC
Aristotle Capital Management, LLC
Atlanta Capital Management Co., LLC
AXA Investment Managers
Baillie Gifford International, LLC
Baird Advisors
Barings LLC
Baron Capital Management, Inc.
Barrow, Hanley, Mewhinney & Strauss, LLC
BentallGreenOak
Black Creek Investment Management Inc.
BlackRock
Blackstone Group (The)
Blue Vista Capital Management, LLC
BNY Mellon Asset Management
Boston Partners
Brandes Investment Partners, L.P.
Brandywine Global Investment Management, LLC
Brookfield Asset Management
Brown Brothers Harriman & Company
Brown Investment Advisory & Trust Company
Capital Group
Carillon Tower Advisers
CastleArk Management, LLC
Callan
June 30, 2022
Table of Contents
Chartwell Investment Partners
J.P. Morgan
CIBC Asset Management Inc,
Janus
ClearBridge Investments, LLC
Jennison Associates LLC
Cohen & Steers Capital Management, Inc.
Jobs Peak Advisors
Columbia Threadneedle Investments North America
KeyCorp
Credit Suisse Asset Management, LLC
Lazard Asset Management
Crescent Capital Group LP
LGIM America
DePrince, Race & Zollo, Inc.
Lincoln National Corporation
Dimensional Fund Advisors L.P.
Longview Partners
Doubleline
Loomis, Sayles & Company, L.P.
Duff & Phelps Investment Management Co.
Lord Abbett & Company
DWS
LSV Asset Management
EARNEST Partners, LLC
MacKay Shields LLC
Epoch Investment Partners, Inc.
Macquarie Asset Management
Fayez Sarofim & Company
Manning & Napier Advisors, LLC
Federated Hermes, Inc.
Manulife Investment Management
Fidelity Institutional Asset Management
Marathon Asset Management, L.P.
Fiera Capital Corporation
McKinley Capital Management, LLC
First Hawaiian Bank Wealth Management Division
Mellon
First Sentier Investors
MetLife Investment Management
Fisher Investments
MFS Investment Management
Franklin Templeton
MidFirst Bank
Fred Alger Management, LLC
MLC Asset Management
GAM (USA) Inc.
Mondrian Investment Partners Limited
GlobeFlex Capital, L.P.
Montag & Caldwell, LLC
GoldenTree Asset Management, LP
Morgan Stanley Investment Management
Goldman Sachs
MUFG Union Bank, N.A.
Golub Capital
Natixis Investment Managers
Guggenheim Investments
Neuberger Berman
GW&K Investment Management
Newton Investment Management
Harbor Capital Group Trust
Ninety One North America, Inc.
Hardman Johnston Global Advisors LLC
Nomura Asset Management U.S.A. Inc.
Heitman LLC
Northern Trust Asset Management
Hotchkis & Wiley Capital Management, LLC
Nuveen
Impax Asset Management LLC
P/E Investments
Income Research + Management Inc.
Pacific Investment Management Company
Insight Investment
Pantheon Ventures
Intech Investment Management LLC
Parametric Portfolio Associates LLC
Intercontinental Real Estate Corporation
Partners Group (USA) Inc.
Invesco
Pathway Capital Management, LP
Callan
June 30, 2022 2
Table of Contents
Peregrine Capital Management, LLC
PFM Asset Management LLC
PGIM Fixed Income
PGIM Quantitative Solutions LLC
Pictet Asset Management
PineBridge Investments
Polen Capital Management, LLC
Principal Global Investors
Putnam Investments, LLC
RBC Global Asset Management
Regions Financial Corporation
Richard Bernstein Advisors LLC
Robeco Institutional Asset Management, US Inc.
Rothschild & Co. Asset Management US
S&P Dow Jones Indices
Schroder Investment Management North America Inc.
Segall Bryant & Hamill
SLC Management
Smith Graham & Co. Investment Advisors, L.P.
State Street Global Advisors
Strategic Global Advisors, LLC
T. Rowe Price Associates, Inc.
The TCW Group, Inc.
Thompson, Siegel & Walmsley LLC
Thornburg Investment Management, Inc.
Tri-Star Trust Bank
UBS Asset Management
VanEck
Versus Capital Group
Victory Capital Management Inc.
Virtus Investment Partners, Inc.
Vontobel Asset Management
Voya
Walter Scott & Partners Limited
Washington Capital Management, Inc.
WCM Investment Management
Wellington Management Company, LLP
Western Asset Management Company LLC
Westfield Capital Management Company, LP
Westwood Holdings Group, Inc.
William Blair & Company LLC
Callan
June 30, 2022 3
Table of Contents
IINVESTMENT REPORT
,itCHANDLER
ASSET MANAGEMENT
Orange County Sanitation District
Period Ending September 30, 2022
CHANDLER ASSET MANAGEMENT, INC. 1 800.317.4747 1 www.chandlerasset.com
11 AL
Table of Contents
ITable of Contents
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
Economic Update
Account Profile
Consolidated Information
Portfolio Holdings
Transactions
As of September 30, 2022
1 QJ1
Table of Contents
Section 1 1 Economic Update
2 Ci►
Table of Contents
I Economic Update
■ Market volati I ity has intensified as financial conditions tighten and global central banks pursue monetary policies to combat
persistently high inflation and maintain financial market stability. Labor markets and consumer balance sheets remain
strong; however, inflation is weighing heavily on consumer sentiment and beginning to impact discretionary spending.
Corporate earnings have generally performed better than expected, but warnings are growing along with wider credit
spreads. While evidence of slower economic conditions has begun to mount, we expect the Federal Reserve to continue to
raise rates until a sustainable improvement in inflationary conditions has been achieved. Over the near -term, we expect
financial market volatility to remain intensified and conditions tighter with persistent inflation, geopolitical risk, and the
Fed's hawkish monetary policy.
At the September meeting, the Federal Open Market Committee (FOMC) delivered the third 75-basis point increase to the
Fed Funds Rate, increasing the range to 3.00% to 3.25%. The FOMC acknowledged spending and production are experiencing
modest growth, offset by a robust labor market and elevated inflation metrics. We expect the Fed to continue to increase
the federal funds rate in the near term until inflationary pressures weaken.
In September, yields rose significantly across the curve. The 2-year Treasury yield increased 79 basis points to 4.28%, the 5-
year Treasury yield rose 74 basis points to 4.09%, and the 10-year Treasury yield gained 64 basis points to 3.83%. The spread
between the 2-year Treasury yield and 10-year Treasury yield became more inverted at -45 basis points at September
month -end versus -30 basis points at August month -end. The spread was a positive 121 basis points one year ago. The
spread between 3-month and 10-year treasuries widened to 56 basis points in September compared to just 27 basis points
in August. The shape of the curve does not necessarily indicate an imminent recession but bears watching as a better
predictor of recession over the medium -term.
3 CJ"
Table of Contents
0
0
0
c
v
C
c
M
s
U
0
2
Employment
Nonfarm Payroll (000's)
1,400
1,200
1,000
800
600
400
200
0
-200
SPp
OPc
�dr
✓�,�
')O
�1
'-)O
7
Source: US Department of Labor
—Non-farm Payroll (000's)
3 month average (000's)
SPp� OPc� �ar� ✓�'h � SPp�
Unemployment Rate
16.0%
- - - Underemployment Rate (U6)
Unemployment Rate (U3)
12.0% ` • -
8.0%
4.0%
0.0%
SPp` 6, /1;1dr 1/0 SPp OPc 21dr ✓�,h SPp
Source: US Department of Labor
The U.S. economy added 263,000jobs in September, surpassing market expectations of 255,000, and gains were revised upward by 11,000for
the prior two months. Trends in employment remain strong, with the three-month moving average payrolls at 372,000 and the six-month
moving average at 360,000. Hiring was widespread, with solid increases in education and health services, leisure and hospitality, and
professional and business services. The unemployment rate fell to 3.5% from 3.7%, as the labor participation rate edged down to 62.3% in
September from 62.4% in August. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and
employed part time for economic reasons dropped to 6.7% from 7.0% last month. Average hourly earnings rose 5.0% year -over -year in
September compared to 5.2% year -over -year in August, a constructive development for the inflation outlook. The strong September labor
report bolsters the case forthe Fed to continue raising the federal funds rate.
4 Q1
Table of Contents
Inflation
10.0%
9.0%
8.0%
7.0%
c 6.0%
u 5.0%
3L 4.0%
0
} 3.0%
2.0%
1.0%
0.0%
Consumer Price Index (CPI)
CPI YOY % Change
- - - Core CPI YOY % Change
•
•
•.... •
SPp'>')0
OPc2ldr�
O O 7
Source: US Department of Labor
0 . ft , f
Personal Consumption Expenditures (PCE)
10.0% -
9.0% PCE Price Deflator YOY % Change
8.0% - - . PCE Core Deflator YOY % Change
7.0% -
a
IF 6.0%
v 5.0%
0
>- 4.0%
0
' 3.0%
2.0% -
1.no/ -
0.0%
Source: US Department of Commerce
The Consumer Price Index (CPI) increased more than expected in September, up 8.2% year -over -year versus consensus expectations for8.1%,
but down slightly from 8.3% in August. The Core CPI, which excludes volatile food and energy components, jumped to 6.6% year -over -year, up
from 6.3% in August and the highest level since 1982. The report included widespread increases, particularly in food, shelter, and medical care
services. Owners' equivalent rent, which is a major contributor to CPI and tends to lag, was up 6.7% year -over -year. The Personal
Consumption Expenditures (PCE) index rose 6.2% in August, higher than consensus estimates of up 6.0%, but down from a 6.4% increase last
month. Core PCE was up 4.9% year -over -year in August, versus up 4.7% year -over -year in July. Persistently elevated inflation is likely to keep
the Federal Reserve on the path of tightening monetary policy as long as it continues to run well above the Fed's longer -run target of around
2.0%.
5 Q1
Table of Contents
I Consumer
Retail Sales YOY % Change
60.0%
50.0%
v 40.0%
s
0
30.0%
o} 20.0%
10.0% —
0.0
0 J1111111MOU11
Ob
Source: US Department of Commerce
Consumer Confidence
140
130
120
a
J 110
x
a
100
90
80
O O l 1 1 1
Source: The Conference Board
Advance retail sales were flat for the month but up 8.2% year -over -year in September, slowing from August's 9.4% year -over -year gain that
surprised to the upside. Retail sales growth is starting to reflect the headwinds from higher prices as consumers dip into savings and assume
more debt. The Conference Board's Consumer Confidence Index rose for the second month in a row to 108.0 in September, with gains in both
the present situation and future expectations components. The strength was tied directly to the consumer's assessment of the labor market,
which continues to reflect the demand for labor outstripping supply.
6 Q1
Table of Contents
Economic Activity
Leading Economic Indicators (LEI)
1.2%
1.0%
0.8%
v 0.6%
o�
s 0.4%
u
0.2%
5; 0.0%
2 -0.2%
-0.4%
-0.6%
-0.8%
10 �o� FP6
�0 1)0 �7
Source: The Conference Board
Chicago Fed National Activity Index (CFNAI)
4.00
3.00
2.00
a 1.00
s
c
0.00
M
-2.00
�P6 �e� �o� FP6 .
�0 �0
Source: Federal Reserve Bank of Chicago
The Conference Board's Leading Economic Index (LEI) remained in negative territory at -0.3% in August, following a decline to -0.5% in July.
This is the sixth straight month -over -month decline for the index. With the year -over -year index now at -1.0% in August and average
workweek in manufacturing having contracted for four of the last six months, the Conference Board stated that US economic activity is
expected to continue to slow more broadly and is likelyto contract. The Chicago Fed National Activity Index (CFNAI) fell to zero in Augustfrom
+0.29 in July indicating a moderation in economic growth over the month. On a 3-month moving average basis, the CFNAI increased to 0.01 in
August from -.08 in each of the last two months.
7 Q1
Table of Contents
I Housing
Housing Starts
2000
1800
w
1600
0
v
1400
c
1200
3
1000
800
v
c 600
400
0 200
0
06
�O 1O �1
Source: US Department of Commerce
q
S&P/Case-Shiller 20 City Composite Home Price Index
24.0%
21.0%
18.0%
0 15.0%
c
f0
12.0%
e
3;� 9.0
0
6.0
3.0
0.0%
Source: S&P
Total housing starts increased 12.2% to an annual rate of 1,575,000 in August, from a revised 1,404,000 units in July. Single-family home starts
increased 3.4% and multi -family homes increased 28% month -over -month. On a year -over -year basis, total housing starts decreased 0.1%
reflecting a shift from single-family units to more affordable multi -family units as homebuyers struggle with a combination of elevated prices
and higher mortgage rates. Mortgage rates for a 30-year fixed-rate loan are higher than they have been since 2007 at 6.7%. According to the
Case-Shiller 20-City Home Price Index, the year -over -year increase receded from 18.7% in June to 16.1% in July, clearly displaying the impact of
higher mortgage rates which have reduced demand for homebuying as affordability has declined.
8 Q1
Table of Contents
I Manufacturing
66
64
62
60
58
56
54
52
50
48
46
44
42
40
Institute of Supply Management Purchasing Manager Index
�Pc, �dr, ✓�'7,
')0 )0
Source: Institute for Supply Management
Industrial Production
20.0%
15.0%
10.0%
s
u
5.0 %
0
} 0.0%
-5.0%
-10.0%
ti01 �06`
�0 130 �I
Source: Federal Reserve
'1
The Institute for Supply Management (ISM) manufacturing index plunged nearly two points to 50.9 in September, the lowest since May 2020
and disappointing relative to consensus expectations of 52.0. Readings above 50.0 are indicative of expansion in the manufacturing sector.
New orders declined significantly, reflecting lower demand for goods as consumers shift to spending on services. Total industrial production
declined by -0.2% in August, following a downwardly revised increase of 0.5% in July. Capacity utilization fell to 80.0% in August from 80.2% in
July, a rate that is 0.4 percentage points above its long -run (1972-2021) average.
9 Q1
Table of Contents
IGross Domestic Product (GDP)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
40.0%
35.0%
30.0%
2.0%
2.1%
0.9%
1.4%
25.0%
20.0%
15.0%
1.8%
5.1%
1.0%
-2.8%
10.0%
5.0%
0.05.0%
-1.1%
-0.2%
-3.1%
1.2%
-10.0%
-0.5%
0.0%
-0.4%
-0.2%
-15.0%
-20.0%
-25.0%
0.5%
-0.2%
0.0%
-0.1%
-30.0%
-35.0%
Gross Domestic Product (GDP)
� GDP QOQ % Change
GDP YOY % Change
Total 2.7% 7.0% -1.6% -0.6% ✓4'�. 1
HOC, ✓�'1% HOC,' ✓472. HOC, ✓47) O00, ✓��. ��°C, ✓�''�.
1> > 41� 'l9 '19 �1
Source: US Department of Commerce
Source: US Department of Commerce
According to the third estimate, U.S. GDP was unrevised at -0.6% annualized in the second quarter. Personal consumption expenditures rose,
primarily due to spending on services. The largest negative contribution was from a drop in gross residential investment as the housing sector
diminished sharply. The second quarter decline followed a first quarter contraction of -1.6%. Although many market participants link two
quarters in a row of negative GDP growth with a recession, an official declaration by the National Bureau of Economic Research is unlikely
given the mosaic of data and the strength of the labor market. The consensus estimate calls for 1.9% growth in the third quarter and 1.7%
growth for the full year 2022.
10 Q1
Table of Contents
Federal Reserve
Federal Reserve Balance Sheet Assets
10,000,000
9,000,000
8,000,000
7,000,000
0
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000 —
c0 cz c� c1 c1 c1 c1 c1 c1) c1 c1 c,' c�
9 O 1 � �' St S 6 8 9 O 1
Source: Federal Reserve
3.50% —
3.00%
2.50%
2.00%
} 1.50%
1.00%
0.50%
0.00%
Source: Bloomberg
Effective Federal Funds Rate
do do +'o do +'o +'o +'o do do do do do
�z �Z �' �Z P1 �Z P1 �z P1 �z �� ��
O .l � .:' 9 S G > 8 9 O .l
At the September meeting, the Federal Open Market Committee (FOMC) delivered the third 75-basis point increase to the Fed Funds Rate,
increasing the range to 3.00% to 3.25%. The FOMC acknowledged spending and production are experiencing modest growth, offset by robust
labor market and elevated inflation metrics. The FOMC remains data dependent to meet its long-term 2% inflation objective. The Fed also
released new economic projections showing a significant slowdown in the economy later in 2022 and 2023. The Fed has reduced its $9trillion
balance sheet holdings by $87.1 billion since the start of the program and will increase the rate of decrease to $95 billion a month in
September. As inflation metrics begin to moderate, we believe the Federal Reserve will decelerate their pace of tightening, but a material
decline in inflation in the short-term is unlikely.
11 Q1
Table of Contents
Bond Yields
US Treasury Note Yields
4.5%
4.0% •••• 2-Year
3.5 %
5-Year
°
10-Year
3.0%
2.5%
v
2.0%
1.5%
1.0%
0.5% • •
0.0% .... ...
SPp� OPc� dr� ✓4V) sPp� OPc� 2ldr� ✓4�� SO
z
O 0 7 1 1 1
Source: Bloomberg
US Treasury Yield Curve
4.5
4.0%
3.5%
3.0% �-_- ---- - ----••
,
2.5% •
d 2.0%
•
1.5%
Sep-22
1.0% - - - Jun-22
0.5% • • • • Sep-21
0.0%
Source: Bloomberg
At the end of September, the 2-year Treasury yield was 400 basis points higher, and the 10-Year Treasury yield was about 234 basis points
higher, year -over -year. The spread between the 2-year Treasury yield and 10-year Treasury yield became more inverted at -45 basis points at
September month -end versus -30 basis points at August month -end. The average historical spread (since 2003) is about 130 basis points. The
spread between 3-month and 10-year treasuries widened to 56 basis points in September compared to just 27 basis points in August. The
shape of the yield curve does not indicate an imminent recession but bears watching as a better predictor of recession overthe medium -term.
12 C1"
Table of Contents
V 14
Section 2 1 Account Profile
13 Qj,,"1,
Table of Contents
IObjectives As of September 30, 2022
Investment Objectives
The investment objectives of the Orange County Sanitation District are first, to provide safety of principal
to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet
all operating requirements; and third, to earn a commensurate rate of return consistent with the
constraints imposed by the safety and liquidity objectives.
Chandler Asset Management Performance Objective
Liquid Operating Monies — will be compared to the 3-month T-Bill rate and operate with a maximum
maturity of one year. Long -Term Operating Monies — will be compared to the ICE BofA 1-5 Year Corporate
Government Rated AAA —A Index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent
with the investment policy and California Government Code.
14 C,'J
Table of Contents
Compliance As of September 30, 2022
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
Category Standard Comment
U.S. Treasuries 10%minimum; 5 years max maturity Complies
20% max per agency of the U.S. Government, which does not provide the full faith and credit of the U.S. government; 5 years max
Federal Agencies maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest Complies
by the US Government, a federal agency, or a US Government -sponsored enterprise
"AA" rated or better by a NRSRO; 30%max; 5 years max maturity; U.S. dollar denominated senior unsecured unsubordinated
Supranational Obligations obligations issued or unconditionally guaranteed bythe International Bankfor Reconstruction and Development ("IBRD"), the Complies
International Finance Corporation ("IFC") or the Inter -American Development Bank ("IADB")
"A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds issued
Municipal Securities Complies
by any of the 50 states; 10% max; 5% max issuer; 5 years max maturity
"A" rating category or better by a NRSRO; 30%max; 5% max per issuer; 5 years max maturity; Issued by corporations organized and
Corporate Medium Term Notes operating within the U.S. or issued by depository institutions licensed by the U.S. or any state and operating within the U.S. with AUM Complies
>$500 million
"AA" rating category or better by a NRSRO; 20% max(combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its
Non -Agency Asset -Backed Securities, agencies) ; 5 years max maturity; Mortgage pass -through security, collateralized mortgage obligation, mortgage -backed or other pay
Complies
Mortgage -Backed Securities, CMOs through bond, equipment lease -backed certificate, consumer receivable pass -through certificate, or consumer receivable -backed
bond
"A" rating or better longterm debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved by the
Negotiable Certificates of Deposit (NCD) Board of Directors; 30%max; 5% max issuer; 5 years max maturity; Negotiable certificates of deposit issued by a nationally or state- Complies
chartered bank or stateof federal savings and loan association, as defined by Section 5102 of the California Financial Code
5% max issuer; 5 years max maturity; Secured (collateralized) time deposits issued by a nationally or state -chartered bank or state
Certificates of Deposit or federal savings and loan association, as defined by Section 5102 of the California Financial Codeand having a net operating profit Complies
in the two most recently completed fiscal years; Collateral must comply with California Government Code
A-1 rated or highest short term rating by a NRSRO; 40% max; 5% max issuer; 180 days max maturity; Acceptance is eligible for
Banker's Acceptances Complies
purchase by the Federal Reserve System
A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized and
Commercial Paper operating in theU.S.with assets >$500 million; 40%max; 5% max issuer; 10%max of the outstanding commercial paper of any Complies
single issuer; 270 days max maturity
15 Q1
Table of Contents
Compliance
Orange County Sanitation District Long Term
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
As of September 30, 2022
Category
Standard
Comment
Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience>than 5 years; 20%
Mutual Fund & Money Market Mutual
Fund
max in Mutual Funds; 10%max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not subject to the
Complies
10%stipulation
No morethan the statutory maximum may be invested in LAIF; Not used by investment adviser; Investment of OCSD funds in LAIF shall
Local Agency Investment Fund (LAIF)
be subjectto investigation and due diligence prior to investing, and on a continual basis to a level of review pursuantto the policy
Complies
Orange County Treasurer's Money
15%max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool; Investment of
Market Commingled Investment Pool
OCSD funds in OCCIP would be subjectto investigation and due diligence prior to investing and on continual basis to a level of review
Complies
(OCCIP)
pursuantto the policy
Repurchase Agreements
20% max; 102% col I atera I i zati on
Complies
Reverse Repurchase Agreements
5% max, 90 days max maturity
Complies
Prohibited
Mortgage Derivatives, which include interest -only payments (IOs) and principal -only payments (POs); Inverse floaters, and RE-
Complies
REMICS (Real Estate Mortgage Investment Conduits)
If securities owned by the OCSD are downgraded below the quality required by the Investment Policy, it shall be OCSD's policy to
reviewthe credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is
Securities Downgrade
made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported quarterly to
Complies
the OCSD General Manager, the
Administration Committee and Board of Directors
Avg Duration
Not to exceed 60 months - (80%to 120% of the benchmark)
Complies
Max Per Holding
5%max of the total debt outstanding of any issuer per individual holding
Complies
Max Per Issuer
5%max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market Mutual
Complies
Funds
Maximum Maturity
5 years max maturity
Complies*
*The portfolio has eighteen (18) securities with maturities greater than 5 years including four (4) CMOs and sixteen (14) M85. All securities were inherited from the previous manager and complied
at time of purchase.
16 CJJJ
Table of Contents
Portfolio Characteristics As of September 30, 2022
Orange County Sanitation District Long Term
Average Maturity (yrs)
2.64
2.78
2.74
Average Modified Duration
2.51
2.41
2.41
Average Purchase Yield
n/a
1.67%
1.55%
Average Market Yield
4.41%
4.42%
3.14%
Average Quality"
AAA
AA/Aa1
AA/Aa1
Total Market Value
700,168,917
714,123,387
*ICE BofA 1-5 YrAAA-A US Corp & Govt Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Multiple securities were purchased in the Treasury, Asset Backed, and Corporate portions of the allocation to keep the
portfolio structured consistent with Chandler targets. The purchased securities ranged in maturity from July 2025 to
September 2027. Several securities were sold, and one matured, to facilitate the new positions in the portfolio.
17 C�'u
Table of Contents
I Sector Distribution
September 30, 2022
US Treasury
33.4%
Supranational
6.5%
Negotiable CD
0.9%
Mortgage Pass Money Market
Thru Fund
0.0% 0.2%
Orange County Sanitation District Long Term
ABS
12.1%
Corporate
26.4%
Agency
19.0%
CIVIC)
1.5%
US Treasury
32.8%
Supranational
7.2 %
Negotiable CD
0.8%
Mortgage Pass
Thru
0.1%
June 30, 2022
Money Market Corporate
Fund 25.3%
1.1%
As of September 30, 2022
The sector allocation was relatively stable over the reporting period, the Chandler team is focused on optimizing the
underlying mix of securities within the respective sector allocations. The two largest adjustments were the 1.1%
increase in the Corporate allocation, to 26.4% of the portfolio, partially offset by the 0.9% decline in the money market
allocation to 0.2% of the portfolio.
ABS
11.5%
CMO
1.5%
Agency
19.8%
18 Q1
Table of Contents
Issuers
Orange County Sanitation District Long Term - Account #10268
As of September 30, 2022
Government of United States
US Treasury
33.40%
Federal National Mortgage Association
Agency
8.17%
Federal Home Loan Bank
Agency
5.47%
Federal Home Loan Mortgage Corp
Agency
4.70%
Inter -American Dev Bank
Supranational
3.78%
Intl Bank Recon and Development
Supranational
2.73%
Hyundai Auto Receivables
ABS
1.92%
John Deere ABS
ABS
1.65%
Bank of America Corp
Corporate
1.56%
Federal Home Loan Mortgage Corp
CIVIC)
1.44%
1P Morgan Chase & Co
Corporate
1.44%
Royal Bank of Canada
Corporate
1.41%
Honda Motor Corporation
Corporate
1.38%
Honda ABS
ABS
1.34%
Toronto Dominion Holdings
Corporate
1.31%
Bank of Montreal Chicago
Corporate
1.29%
Toyota Lease Owner Trust
ABS
1.28%
Charles Schwab Corp/The
Corporate
1.25%
Metlife Inc
Corporate
1.20%
Toyota Motor Corp
Corporate
1.18%
Morgan Stanley
Corporate
1.17%
Qualcomm Inc
Corporate
1.12%
GM Financial Automobile Leasing Trust
ABS
1.12%
Northwestern Mutual Glbl
Corporate
1.05%
Amazon.com Inc
Corporate
1.01%
US Bancorp
Corporate
0.98%
Hyundai Auto Lease Securitization
ABS
0.98%
Apple Inc
Corporate
0.96%
Caterpillar Inc
Corporate
0.93%
American Express ABS
ABS
0.92%
Wal-Mart Stores
Corporate
0.91%
Berkshire Hathaway
Corporate
0.90%
Svenska Handelsbanken NY
Negotiable CD
0.86%
Dominion Resources Inc
Corporate
0.78%
GM Financial Securitized Term Auto Trust
ABS
0.77%
PNC Financial Services Group
Corporate
0.72%
Intel Corp
Corporate
0.70%
Federal Farm Credit Bank
Agency
0.68%
19 Cli
Table of Contents
Issuers
Orange County Sanitation District Long Term — Account #10268
Honeywell Corp
BMW Vehicle Lease Trust
Chubb Corporation
United Health Group Inc
Deere & Company
Mercedes-Benz Auto Lease Trust
Guardian Life Global Funding
Verizon Master Trust
BMW ABS
Toyota ABS
Bank of New York
First American Govt Obligation Fund Class-Z
Salesforce.com Inc
BlackRock Inc/New York
Nissan ABS
Federal National Mortgage Association
AMRESCO Residental Securities Corp
Federal National Mortgage Association
GNMA
SLM Corp
Federal Home Loan Mortgage Corp
TOTAL
Corporate
ABS
Corporate
Corporate
Corporate
ABS
Corporate
ABS
ABS
ABS
Corporate
Money Market Fund
Corporate
Corporate
ABS
Mortgage Pass Thru
CMO
CMO
Mortgage Pass Thru
ABS
Mortgage Pass Thru
As of September 30, 2022
0.66%
0.62%
0.56%
0.51%
0.46%
0.46%
0.41%
0.39%
0.35%
0.21%
0.21%
0.19%
0.18%
0.14%
0.13%
0.04%
0.02 %
0.01 %
0.01%
0.00%
0.00%
100.00%
20 Ci'
Table of Contents
Quality Distribution
70.0%
60.0 %
50.0%
40.0 %
30.0%
20.0%
10.0 %
0.0 %
AAA
09/30/22
06/30/22
Source: S&P Ratings
Orange County Sanitation District Long Term
September 30, 2022 vs. June 30, 2022
AA A
■ 09/30/22
<A
06/30/22
17.5% 60.1% 18.0% 0.8%
18.8% 59.5% 18.1% 0.4%
NR
As of September 30, 2022
21 Q11
Table of Contents
Quality Distribution
80.0 %
70.0%
60.0 %
50.0%
40.0 %
30.0%
20.0%
10.0 %
0.0%
AAA
09/30/22
06/30/22
Source: Moody's Ratings
As of September 30, 2022
Orange County Sanitation District Long Term
September 30, 2022 vs. June 30, 2022
AA A <A NR
■ 09/30/22 06/30/22
69.1% 3.6% 20.8% 0.0% 6.5%
69.5% 3.8% 20.5% 0.0% 6.1%
22 Q11
Table of Contents
I Duration Distribution
40.0 %
35.0%
30.0%
25.0%
20.0%
15.0 %
10.0 %
5.0 %
0.0%
0 - 0.25
Portfolio
Benchmark*
Orange County Sanitation District Long Term
Portfolio Compared to the Benchmark
0.25-0.50 0.50-1 1-2
■ Orange County Sanitation District Long Term
Wr
2-3 3-4 4-5
■ ICE BofA 1-5 Yr AAA -A US Corp & Govt Index
1.2% 1.2% 8.0% 30.3% 29.0% 17.6% 12.7%
0.0% 0.0% 1.6% 35.4% 27.3% 22.1% 13.6%
As of September 30, 2022
5+
0.0%
0.0%
`ICE BofA 1-5 Vr AAA -A US Corp & Govt Index
The duration of the portfolio was stable, ending the quarter unchanged at 2.41 years. The Chandler team if focused on keeping the
overall duration of the portfolio consistent with the benchmark and altering the term structure of the portfolio to assist in generating3
positive relative returns versus the benchmark.
Table of Contents
IInvestment Performance
Orange County Sanitation District Long Term
Total Rate of Return Annualized Since Inception November 30, 2014
2.00 %
1.00 %
0.00 %
-1.00%
-2.00 %
-3.00%
-4.00%
-5.00 %
-6.00 %
-7.00 %
-8.00 %
As of September 30, 2022
12 months 2 years 3 years
5 years
10 years
Since Inception
■ Orange County Sanitation District Long Term
ICE BofA
1-5 Yr AAA -A US Corp & Govt Index
Annualized
TOTAL RATE OF RETURN 3 months 12 months
2 years
3 years
5 years
10 years
Since
Inception
Orange County Sanitation District Long Term -2.01% -6.38%
-3.28%
-0.70%
0.65%
N/A
0.86%
ICE BofA 1-5 Yr AAA -A US Corp & Govt Index -2.26% -6.98%
-3.63%
-0.92%
0.49%
N/A
0.75%
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the
ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
24 Q1
Table of Contents
Compliance As of September 30, 2022
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
Category Standard Comment
U.S. Treasuries 10% minimum; 1 year max maturity Complies
20% max per agency of the U.S. Government, which does not provide the ful I faith and credit of the U.S. government; 1 year max
Federal Agencies maturity; Securities, obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and Complies
interest by the US Government, a federal agency, or a US Government -sponsored enterprise
"AA" rated or better by a NRSRO; 30% max; 1 year max maturity; U.S. dollar denominated senior unsecured unsubordinated
Supranational Obligations obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development ("IBRD"), the Complies
International Finance Corporation ("IFC") or the Inter -American Development Bank ("IADB")
"A" rated or higher by a NRSRO; or as otherwise approved by the Board of Directors; Taxable or tax-exempt municipal bonds
Municipal Securities Complies
issued by any of the 50 states; 10%max; 5% max issuer; 1 year max maturity
"A" rating category or better by a NRSRO; 30% max; 5% max per issuer; 1 year max maturity; Issued by corporations
Corporate Medium Term Notes organized and operatingwithin the U.S. or issued by depository institutions licensed by the U.S. or any state and operating Complies
within the U.S. with AUM >$500 million
"AA" rating category or better by a NRSRO; 20% max (combined MBS/CMO/ABS); 5% max issuer (except U.S. government or its
Non- Agency Asset -Backed Securities, agencies) ; 1 year max maturity; Mortgage pass -through security, collateralized mortgage obligation, mortgage -backed or Complies
Mortgage -Backed Securities, CMOs other pay -through bond, equipment lease -backed certificate, consumer receivable pass -through certificate, or consumer
receivable -backed bond
"A" rating or better longterm debt by a NRSRO; or highest short term rating for deposits by a NRSRO; or as otherwise approved
Negotiable Certificates of Deposit by the Board of Directors; 30% max; 5% max issuer; 1 year max maturity; Negotiable certificates of deposit issued by a Complies
(NCD) nationally or state -chartered bank or state of federal savings and loan association, as defined by Section 5102 of the
California Financial Code
5% max issuer; 1 year max maturity; Secured (collateralized) time deposits issued by a nationally or state -chartered bank or
Certificates of Deposit state or federal savings and loan association, as defined by Section 5102 of the California Financial Code and having a net Complies
operating profit in the two most recently completed fiscal years; Collateral must comply with California Government Code
Banker's Acceptances A-1 rated or highest shortterm rating by a NRSRO; 40%max; 5% max issuer; 180 days max maturity; Acceptance is eligible for Complies
purchase by the Federal Reserve System
A-1 rated or better by a NRSRO; "A" long term debt rating or better by a NRSRO; Issued by a domestic corporation organized
Commercial Paper and operating in the U.S. with assets > $500 million; 40% max; 5%max issuer; 10%max of the outstanding commercial paper Complies
of any single issuer; 270 days max maturity
25 Q1
Table of Contents
Compliance
Orange County Sanitation District Liquid
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
As of September 30, 2022
Category
Standard
Comment
Mutual Fund & Money Market Mutual
Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience >than 5 years;
Fund
20% max in Mutual Funds; 10% max per one Mutual Fund; 20% max per issuer on Money Market Mutual Funds and are not
Complies
subject to the 10%stipulation
No more than the statutory maximum maybe invested in LAIF; Not used by investment adviser; Investment of OCSD funds in
Local Agency Investment Fund (LAIF)
LAIF shall be subjectto investigation and due diligence prior to investing, and on a continual basis to a level of review
Complies
pursuantto the policy
Orange County Treasurer's Money
15% max; Not used by investment adviser; Orange County Treasurer's Money Market Commingled Investment Pool;
Market Commingled Investment Pool
Investment of OCSD funds in OCCIP would be subjectto investigation and due diligence prior to investing and on continual
Complies
(OCCIP)
basis to a level of review pursuantto the policy
Repurchase Agreements
20% max; 102% col I atera I i zati on
Complies
Reverse Repurchase Agreements
5% max, 90 days max maturity
Complies
Prohibited
Mortgage Derivatives, which include interest -only payments (IOs) and principal -only payments (POs); Inverse floaters, and RE-
Complies
REMICS (Real Estate Mortgage Investment Conduits)
If securities owned by the OCSD are downgraded belowthe quality required by the Investment Policy, it shall be OCSD's policy
to reviewthe credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a
Securities Downgrade
decision is madeto retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and
Complies
reported quarterly to the OCSD General Manager, the
Administration Committee and Board of Directors
Avg Duration
Not to exceed 180 days
Complies
Max Per Holding
5% max ofthetotal debt outstanding of any issuer per individual holding
Complies
Max Per Issuer
5% max per issuer (except Supranationals, U.S. Government, Agencies, Mutual Funds); 20% max per issuer on Money Market
Complies
Mutual Funds
Maximum Maturity
1 year max maturity
Complies
26 CJJJ
Table of Contents
Portfolio Characteristics As of September 30, 2022
Orange County Sanitation District Liquid
Average Maturity (yrs)
0.15
0.28
0.34
Average Modified Duration
0.15
0.28
0.33
Average Purchase Yield
n/a
2.01%
1.24%
Average Market Yield
2.74%
3.53%
1.86%
Average Quality"
AAA
AA+/Aa1
AA+/Aaa
Total Market Value
109,456,669
183,920,263
*ICE BofA 3-Month US Treasury Bill Index
**Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Several securities were purchased in the Treasury, Agency, and Corporate portfolios of the allocation. The purchased
securities ranged in maturity from November 2022 to June 2023. A few securities matured and a net $75 million was
withdrawn from the portfolio during the quarter.
27 C�'u
Table of Contents
Sector Distribution
US Treasury
63.3%
September 30, 2022
Agency
5.6%
Orange County Sanitation District Liquid
Corporate
13.0 %
Money Market
Fund
2.9%
Negotiable CD US Treasury
15.1% 77.0%
As of September 30, 2022
June 30, 2022
Agency
2.7% Corporate
The sector allocation evolved linked to the large cash withdrawal during the reporting period. Some of the larger
changes include the 13.7% reduction in the US Treasury allocation, to 63.3% of the portfolio, partially offset by the 6.3%
increase in the Corporate allocation, to 13.0% of the portfolio.
iney Market
Fund
0.9 %
Negotiable CD
12.7%
28 CI®
Table of Contents
Issuers
Orange County Sanitation District Liquid — Account #10282
As of September 30, 2022
Government of United States
US Treasury
63.30%
Toronto Dominion Holdings
Negotiable CD
4.57%
Royal Bank of Canada
Negotiable CD
4.57%
Federal Home Loan Bank
Agency
4.54%
Westpac Banking Corp NY
Negotiable CD
3.66%
First American Govt Obligation Fund Class-Z
Money Market Fund
2.95%
MUFG Bank Ltd/NY
Negotiable CD
2.29%
United Parcel Service
Corporate
2.22%
Metlife Inc
Corporate
2.06%
Bank of America Corp
Corporate
1.84%
1P Morgan Chase & Co
Corporate
1.83%
Morgan Stanley
Corporate
1.83%
Dominion Resources Inc
Corporate
1.81%
Bank of New York
Corporate
1.44%
Federal Home Loan Mortgage Corp
Agency
1.11%
TOTAL
100.00%
29 Cift
Table of Contents
Quality Distribution
70.0%
60.0 %
50.0%
40.0 %
30.0%
20.0%
10.0 %
0.0%
AAA
09/30/22
06/30/22
Source: S&P Ratings
As of September 30, 2022
Orange County Sanitation District Liquid
September 30, 2022 vs. June 30, 2022
AA A <A NR
■ 09/30/22 06/30/22
29.4% 59.6% 9.2% 1.8% 0.0%
33.1% 61.4% 4.4% 1.1% 0.0%
30 Cif
Table of Contents
Quality Distribution
100.0 %
90.0%
80.0 %
70.0%
60.0 %
50.0%
40.0 %
30.0%
20.0%
10.0 %
0.0%
AAA
09/30/22
06/30/22
Source: Moody's Ratings
As of September 30, 2022
Orange County Sanitation District Liquid
September 30, 2022 vs. June 30, 2022
AA A <A NR
■ 09/30/22 06/30/22
87.0% 2.1% 11.0% 0.0% 0.0%
93.3% 1.2% 5.5% 0.0% 0.0%
31 Cif
Table of Contents
I Duration Distribution
120.0%
100.0 %
80.0 %
60.0 %
40.0%
20.0%
0.0%
Orange County Sanitation District Liquid
Portfolio Compared to the Benchmark
0-0.25 0.25-0.50 0.50-1 1-1.5
■ Orange County Sanitation District Liquid
1.5-2 2-2.5 2.5-3
■ ICE BofA 3-Month US Treasury Bill Index
Portfolio 28.4% 67.7% 3.9% 0.0% 0.0% 0.0% 0.0%
Benchmark* 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
As of September 30, 2022
3+
0.0%
0.0%
'ICE BofA 3-Month US Treasury Bill Index
The duration of the portfolio contracted moderately, currently 0.28 years compared to 0.33 years at the end of the prior
quarter. The duration of the portfolio is driven by the cash flow needs of OC Sanitation and is poised to remain in a range 32 Q1
over the coming quarters.
Table of Contents
Investment Performance
Orange County Sanitation District Liquid
Total Rate of Return Annualized Since Inception November 30, 2014
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
12 months 2 years 3 years
■ Orange County Sanitation District Liquid
As of September 30, 2022
5 years 10 years Since Inception
■ ICE BofA 3-Month US Treasury Bill Index
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years
3 years
5 years
10 years
Since
Inception
Orange County Sanitation District Liquid 0.35% 0.38% 0.25%
0.61%
1.18%
N/A
0.92%
ICE BofA 3-Month US Treasury Bill Index 0.46% 0.62% 0.34%
0.59%
1.15%
N/A
0.85%
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the
ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
33 Q1
Table of Contents
Compliance
OCSD Lehman Exposure
Assets managed by Chandler Asset Management are in full compliance with state law and with the investment policy
As of September 30, 2022
Category
Standard
Comment
Treasury Issues
5 years maximum maturity
Complies
Supranational
or better by 1 of NRSROs; 30% maximum; 5% max; 5 years maturity; Includes only: IADB, IBRD, and IFC per
Complies
CAA"
GC
U.S. Agencies
20% max issuer; 5 years maximum maturity
Complies
U.S. Corporate (MTNs)
"A" or better longterm rating by 1 of 3 NRSROs; 30% maximum; 5% max issuer; 5 years max maturity
Complies*
Municipal Securities
"A" or higher by 1 of 3 NRSROS; 10% maximum; 5% max issuer; 5 years maximum maturity
Complies
Asset Backed/ CMOs/ Mortgage -backed
"AA" or better by 1 of 3 NRSROs; "A" or higher issuer rating by 1 of 3 NRSROs; 20% maximum; 5% max issuer
Complies
(excluding MBS/govt agency); 5 years max maturity
Negoti a bl e CDs
"A" or better on its long term debt by 1 of 3 NRSROs ; "A1/P1" or highest short term ratings by 1 of 3 NRSROs; 30%
Complies
maximum; 5% max issuer; 5 years max maturity
CDs/TDS
5% max issuer; 5 years max maturity
Complies
Banker's Acceptances
A-1, or equivalent highest short term rating by 1 of 3 NRSROS; 40% maximum; 5% max issuer; 180 days max maturity
Complies
Commercial Paper
A-1, or equivalent by 1 of 3 NRSROS; "A" or better by 1 of 3 NRSROs, if longterm debt issued; 25% maximum; 5% max
Complies
issuer; 270 days max maturity
Money Market Fund
Highest rating by 2 of 3 NRSROs; 20% maximum; 10% max issuer
Complies
Repurchase Agreements
102% collateral ization
Complies
Reverse Repurchase Agreements
5% maximum, 90 days max maturity
Complies
LAI F
Not used by i nvestment a dvi ser
Complies
Avg Duration
Not to exceed 60 months - (80%to 120%of the benchmark)
Complies
Maximum Maturity
5 years maximum maturity
Complies
*Accountholds $2 million face value (cusip 525ESCOy6) and $600,000 face value (cusip 525ESC1B7) of defaulted Lehman Bros Holdings that were purchased by the previous
manager. Complied at time of purchase.
34 Q1
Table of Contents
Portfolio Characteristics As of September 30, 2022
OC SAN Lehman Exposure
Average Maturity (yrs)
5.71
6.11
Modified Duration
0.00
0.00
Average Purchase Yield
0.00%
0.00%
Average Market Yield
0.00%
0.00%
Average Quality*
NR/NR
NR/NR
Total Market Value
35,241
361021
*Portfolio is S&P and Moody's, respectively.
35 Cj"
Table of Contents
V 14
Section 3 1 Consolidated Information
36 cjj�";s
Table of Contents
Portfolio Characteristics
Orange County Sanitation District Consolidated
Average Maturity (yrs)
Modified Duration
Average Purchase Yield
Average Market Yield
Average Quality*
Total Market Value
* Portfolio is S&P and Moody's respectively.
2.44
2.12
1.71%
4.30%
AA+/Aa 1
809,660,827
2.24
1.98
1.49
2.88
AA+/Aa 1
898,079,671
As of September 30, 2022
37 c�'u
Table of Contents
Sector Distribution
September 30, 2022
US Treasury
37.4%
Supranational
5.6%
Negotiable CD
2.8% Mortgage Pass Money Market
Thru Fund
0.0% 0.6%
Orange County Sanitation District Consolidated
ABS
10.5%
Corporate
24.6 %
icy
CMO
1.3 %
in Stock
US Treasury
41.9%
Supranational
5.7%
Negotiable CD
3.3 %
June 30, 2022
As of September 30, 2022
ABS
r 9.1%
Mortgage Pass Money Market
Thru Fund
0.0% 1.1%
Agency
16.3%
CMO
1.2%
:ommon Stock
0.0%
,porate
.1.5 %
38 Cift
Table of Contents
V 14
Section 4 1 Portfolio Holdings
39 cjj�";s
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
78445JAA5 SLM Student Loan Trust 2008-9 A 8,482.49 08/22/2008 8,448.07 99.21 8,415.28 0.00% Ba3 / B- 0.57
3.777% Due 04/25/2023
3.86%
8,481.17
5.57%
60.52
(65.89)
B
0.00
44891VAC5
Hyundai Auto Lease Trust 2021-B A3
4,155,000.00
06/08/2021
4,154,376.75
97.56
4,053,701.10
0.58%
Aaa / AAA
1.72
0.330% Due 06/17/2024
0.34%
4,154,735.06
4.63%
609.40
(101,033.96)
NR
0.57
65479JAD5
Nissan Auto Receivables Owner 2019-C A3
927,926.12
10/16/2019
927,877.13
99.62
924,413.92
0.13%
Aaa / AAA
1.79
1.930% Due 07/15/2024
1.94%
927,907.60
3.76%
795.95
(3,493.68)
NR
0.21
89237VAB5
Toyota Auto Receivables Trust 2020-C A3
1,511,729.99
07/21/2020
1,511,613.60
98.35
1,486,848.23
0.21%
Aaa / AAA
2.04
0.440% Due 10/15/2024
0.44%
1,511,673.72
4.45%
295.63
(24,825.49)
NR
0.41
43813KAC6
Honda Auto Receivables Trust 2020-3 A3
2,133,347.31
09/22/2020
2,133,033.93
97.82
2,086,870.21
0.30%
NR/AAA
2.05
0.370% Due 10/18/2024
0.38%
2,133,234.27
4.54%
285.04
(46,364.06)
AAA
0.52
89239CAC3
Toyota Lease Owner Trust 2021-B A3
3,185,000.00
07/27/2021
3,184,957.00
96.29
3,066,839.69
0.44%
Aaa / NR
2.06
0.420% Due 10/21/2024
0.42%
3,184,977.28
4.78%
408.74
(118,137.59)
AAA
0.86
47787NAC3
John Deere Owner Trust 2020-B A3
735,636.56
07/14/2020
735,524.45
98.05
721,302.67
0.10%
Aaa / NR
2.13
0.510% Due 11/15/2024
0.52%
735,595.05
4.85%
166.74
(14,292.38)
AAA
0.45
58769KAD6
Mercedes-Benz Auto Lease Trust 2021-B A3
3,315,000.00
06/22/2021
3,314,749.72
96.54
3,200,363.99
0.46%
NR/AAA
2.13
0.400% Due 11/15/2024
0.40%
3,314,873.25
4.75%
589.33
(114,509.26)
AAA
0.80
09690AAC7
BMW Vehicle Lease Trust 2021-2 A3
2,070,000.00
09/08/2021
2,069,786.38
97.15
2,010,973.97
0.29%
Aaa / NR
2.24
0.330% Due 12/26/2024
0.34%
2,069,884.32
4.51%
113.85
(58,910.35)
AAA
0.68
44891WAC3
Hyundai Auto Lease Trust 2022-A A3
2,895,000.00
01/11/2022
2,894,936.02
96.28
2,787,285.74
0.40%
Aaa / AAA
2.30
1.160% Due 01/15/2025
1.16%
2,894,955.99
4.51%
1,492.53
(107,670.25)
NR
1.12
89238LAC4
Toyota Lease Owner Trust 2022-A A3
6,125,000.00
02/23/2022
6,124,035.93
96.40
5,904,512.25
0.84%
NR/AAA
2.39
1.960% Due 02/20/2025
1.98%
6,124,281.81
4.67%
3,668.19
(219,769.56)
AAA
1.35
36265MAC9
GM Financial Auto Lease Trust 2022-1 A3
5,020,000.00
02/15/2022
5,019,956.83
96.55
4,846,895.34
0.69%
Aaa / NR
2.47
1.900% Due 03/20/2025
1.91%
5,019,968.90
4.71%
2,914.39
(173,073.56)
AAA
1.24
05601XAC3
BMW Vehicle Lease Trust 2022-1 A3
2,400,000.00
01/11/2022
2,399,641.20
96.29
2,310,876.00
0.33%
NR/AAA
2.48
1.100% Due 03/25/2025
1.11%
2,399,756.14
4.76%
440.00
(88,880.14)
AAA
1.02
43813GAC5
Honda Auto Receivables Trust 2021-1 A3
1,399,041.83
02/17/2021
1,399,016.23
97.08
1,358,230.39
0.19%
Aaa / NR
2.56
0.270% Due 04/21/2025
0.27%
1,399,029.57
4.95%
104.93
(40,799.18)
AAA
0.62
36266FAC3
GM Financial Auto Lease Trust 2022-2 A3
3,035,000.00
05/03/2022
3,034,683.45
98.09
2,977,098.27
0.43%
NR/AAA
2.72
3.420% Due 06/20/2025
3.45%
3,034,739.96
4.76%
3,171.58
(57,641.69)
AAA
1.46
47788UAC6
John Deere Owner Trust 2021-A A3
2,300,000.00
03/02/2021
2,299,557.94
96.11
2,210,438.00
0.32%
Aaa / NR
2.96
0.360% Due 09/15/2025
0.37%
2,299,749.56
4.92%
368.00
(89,311.56)
AAA
0.86
44933LAC7
Hyundai Auto Receivables Trust 2021-A A3
2,100,000.00
04/20/2021
2,099,779.08
96.68
2,030,208.60
0.29%
NR / AAA
2.96
0.380% Due 09/15/2025
0.38%
2,099,882.49
4.59%
354.67
(69,673.89)
AAA
0.79
40 Q1
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
44934KAC8
Hyundai Auto Receivables Trust 2021-B A3
6,040,000.00
07/20/2021
6,038,666.97
95.32
5,757,340.08
0.82%
NR / AAA
3.30
0.380% Due 01/15/2026
0.39%
6,039,167.58
4.99%
1,020.09
(281,827.50)
AAA
1.02
43815GAC3
Honda Auto Receivables Trust 2021-4 A3
2,290,000.00
11/16/2021
2,289,517.27
94.61
2,166,598.77
0.31%
Aaa / NR
3.31
0.880% Due 01/21/2026
0.89%
2,289,643.96
4.70%
559.78
(123,045.19)
AAA
1.43
47789QAC4
John Deere Owner Trust 2021-B A3
2,820,000.00
07/13/2021
2,819,748.46
94.50
2,664,973.32
0.38%
Aaa / NR
3.46
0.520% Due 03/16/2026
0.52%
2,819,830.92
4.71%
651.73
(154,857.60)
AAA
1.33
44935FAD6
Hyundai Auto Receivables Trust 2021-C A3
1,600,000.00
11/09/2021
1,599,642.88
94.36
1,509,825.62
0.22%
NR/AAA
3.62
0.740% Due 05/15/2026
0.75%
1,599,741.20
4.93%
526.22
(89,915.58)
AAA
1.37
43815BAC4
Honda Auto Receivables Trust 2022-1 A3
3,930,000.00
02/15/2022
3,929,408.93
95.03
3,734,702.58
0.53%
Aaa / AAA
3.62
1.880% Due 05/15/2026
1.89%
3,929,519.41
4.81%
3,283.73
(194,816.83)
NR
1.73
05602RAD3
BMW Vehicle Owner Trust 2022-A A3
2,530,000.00
05/10/2022
2,529,868.44
97.34
2,462,745.01
0.35%
Aaa / AAA
3.90
3.210% Due 08/25/2026
3.23%
2,529,884.22
4.81%
1,353.55
(67,139.21)
NR
1.70
362554AC1
GM Financial Securitized Term 2021-4 A3
1,705,000.00
10/13/2021
1,704,956.52
94.24
1,606,814.17
0.23%
Aaa / AAA
3.96
0.680% Due 09/16/2026
0.68%
1,704,968.60
5.04%
483.08
(98,154.43)
NR
1.34
47787JAC2
John Deere Owner Trust 2022-A A3
3,010,000.00
03/10/2022
3,009,334.19
95.59
2,877,403.48
0.41%
Aaa / NR
3.96
2.320% Due 09/16/2026
2.34%
3,009,437.78
5.00%
3,103.64
(132,034.30)
AAA
1.67
448977ADO
Hyundai Auto Receivables Trust 2022-A A3
4,300,000.00
03/09/2022
4,299,834.45
95.93
4,124,929.80
0.59%
NR/AAA
4.04
2.220% Due 10/15/2026
2.23%
4,299,862.20
4.62%
4,242.67
(174,932.40)
AAA
1.72
380146AC4
GM Financial Auto Receivables 2022-1 A3
1,590,000.00
01/11/2022
1,589,861.83
95.13
1,512,625.85
0.22%
NR /AAA
4.13
1.260% Due 11/16/2026
1.27%
1,589,890.88
4.79%
834.75
(77,265.03)
AAA
1.40
362585AC5
GM Financial Securitized ART 2022-2 A3
2,330,000.00
04/05/2022
2,329,513.03
96.93
2,258,499.29
0.32%
Aaa / AAA
4.38
3.100% Due 02/16/2027
3.13%
2,329,579.54
4.92%
3,009.58
(71,080.25)
NR
1.72
47800AAC4
John Deere Owner Trust 2022-B A3
3,140,000.00
07/12/2022
3,139,700.13
97.65
3,066,345.02
0.44%
Aaa / NR
4.38
3.740% Due 02/16/2027
3.77%
3,139,716.89
4.86%
5,219.38
(73,371.87)
AAA
2.16
02582JJT8
American Express Credit Trust 2022-2 A
6,620,000.00
05/17/2022
6,618,535.66
96.77
6,406,174.00
0.92%
NR/AAA
4.63
3.390% Due 05/17/2027
3.42%
6,618,710.79
4.75%
9,974.13
(212,536.79)
AAA
2.44
92348KAV5
Verizon Master Trust 2022-5 A1A
2,750,000.00
08/02/2022
2,749,879.00
99.05
2,723,765.00
0.39%
NR/AAA
4.81
3.720% Due 07/20/2027
3.75%
2,749,885.09
4.51%
3,125.83
(26,120.09)
AAA
1.79
87,960,441.47
84,858,015.64
12.13%
Aaa / AAA
3.16
TOTAL ABS
87,971,164.30
1.63%
87,963,565.20
4.74%
53,227.65
(3,105,549.56)
Aaa
1.32
Agency
3137EAEN5
FHLMC Note
10,000,000.00
Various
9,956,500.00
98.93
9,892,980.00
1.42%
Aaa / AA+
0.72
2.750% Due 06/19/2023
2.84%
9,993,706.21
4.27%
77,916.66
(100,726.21)
AAA
0.70
41 Q11
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
3135GO5G4
FNMA Note
6,775,000.00
07/08/2020
6,760,433.75
97.13
6,580,394.90
0.94%
Aaa / AA+
0.78
0.250% Due 07/10/2023
0.32%
6,771,248.69
4.04%
3,810.94
(190,853.79)
AAA
0.76
313383YJ4
FHLB Note
10,000,000.00
Various
10,211,831.00
99.10
9,910,270.01
1.42%
Aaa / AA+
0.94
3.375% Due 09/08/2023
2.89%
10,042,633.30
4.36%
21,562.50
(132,363.29)
NR
0.91
3130AOF70
FHLB Note
10,000,000.00
Various
10,269,043.75
98.80
9,879,530.01
1.43%
Aaa / AA+
1.19
3.375% Due 12/08/2023
2.79%
10,064,649.09
4.42%
105,937.50
(185,119.08)
AAA
1.14
3135GOV34
FNMA Note
5,000,000.00
02/27/2019
4,980,850.00
97.59
4,879,705.00
0.70%
Aaa / AA+
1.35
2.500% Due 02/05/2024
2.58%
4,994,774.38
4.36%
19,444.44
(115,069.38)
AAA
1.30
3130AM2
FHLB Note
11,110,000.00
Various
11,589,031.30
97.52
10,833,972.05
1.56%
Aaa / AA+
1.71
2.875% Due 06/14/2024
1.96%
11,273,441.42
4.40%
94,936.49
(439,469.37)
NR
1.63
3133EKWV4
FFCB Note
5,000,000.00
08/13/2019
5,048,280.00
95.59
4,779,355.00
0.68%
Aaa / AA+
1.82
1.850% Due 07/26/2024
1.65%
5,017,731.15
4.40%
16,701.39
(238,376.15)
AAA
1.76
313OA2UW4
FHLB Note
2,500,000.00
09/12/2019
2,635,950.00
97.26
2,431,437.50
0.35%
Aaa / AA+
1.96
2.875% Due 09/13/2024
1.73%
2,553,055.47
4.35%
3,593.75
(121,617.97)
AAA
1.87
3135GOX24
FNMA Note
10,000,000.00
Various
10,157,936.40
94.36
9,435,770.00
1.35%
Aaa / AA+
2.27
1.625% Due 01/07/2025
1.28%
10,075,129.33
4.26%
37,916.66
(639,359.33)
AAA
2.18
3137EAEPO
FHLMC Note
12,335,000.00
Various
12,510,182.05
93.94
11,587,042.61
1.66%
Aaa / AA+
2.37
1.500% Due 02/12/2025
1.20%
12,418,977.13
4.22%
25,183.96
(831,934.52)
AAA
2.28
313OA4CH3
FHLB Note
5,225,000.00
03/19/2020
5,526,848.25
95.60
4,994,849.20
0.71%
Aaa / AA+
2.45
2.375% Due 03/14/2025
1.18%
5,373,436.36
4.28%
5,859.98
(378,587.16)
AAA
2.35
3135GO3U5
FNMA Note
14,000,000.00
Various
13,996,711.60
91.14
12,759,684.00
1.83%
Aaa / AA+
2.56
0.625% Due 04/22/2025
0.63%
13,998,336.96
4.32%
38,645.84
(1,238,652.96)
AAA
2.48
3135GO4Z3
FNMA Note
9,905,000.00
06/17/2020
9,884,496.65
90.39
8,953,555.42
1.28%
Aaa / AA+
2.72
0.500% Due 06/17/2025
0.54%
9,893,871.54
4.29%
14,307.22
(940,316.12)
AAA
2.64
3137EAEU9
FHLMC Note
5,030,000.00
07/21/2020
5,004,950.60
89.73
4,513,383.79
0.65%
Aaa / AA+
2.81
0.375% Due 07/21/2025
0.48%
5,015,937.18
4.30%
3,667.71
(502,553.39)
AAA
2.73
3135GO5X7
FNMA Note
7,945,000.00
08/25/2020
7,907,817.40
89.43
7,105,181.72
1.02%
Aaa / AA+
2.90
0.375% Due 08/25/2025
0.47%
7,923,412.08
4.29%
2,979.38
(818,230.36)
AAA
2.83
3137EAEX3
FHLMC Note
7,660,000.00
09/23/2020
7,636,943.40
89.25
6,836,710.86
0.98%
Aaa / AA+
2.98
0.375% Due 09/23/2025
0.44%
7,646,246.94
4.25%
638.33
(809,536.08)
AAA
2.90
3135GO6G3
FNMA Note
8,255,000.00
11/09/2020
8,225,447.10
89.07
7,352,645.95
1.05%
Aaa / AA+
3.11
0.500% Due 11/07/2025
0.57%
8,236,612.61
4.30%
16,510.00
(883,966.66)
AAA
3.01
142,303,253.25
132,726,468.02
19.03%
Aaa / AA+
2.01
TOTAL Agency
140,740,000.00
1.40%
141,293,199.84
4.30%
489,612.75
(8,566,731.82)
Aaa
1.94
42 Q1
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
3137BFE98 FHLMC K041 A2 5,000,000.00 07/01/2021 5,378,515.62 97.23 4,861,440.00 0.70% Aaa / AAA 2.07
3.171% Due 10/25/2024
0.72%
5,234,090.46
4.58%
13,212.50
(372,650.46)
AAA
1.87
3137BSRE5
FHLMC K059A2
5,000,000.00
02/18/2022
5,214,062.50
94.75
4,737,585.00
0.68%
NR/AAA
3.99
3.120% Due 09/25/2026
1.98%
5,185,650.57
4.58%
13,000.00
(448,065.57)
AAA
3.57
03215PFN4
AMRESCO Residential Securities 1999-1 A
116,624.77
05/20/2011
87,577.91
98.58
114,966.36
0.02%
NR / BBB
6.74
3.313% Due 06/25/2029
7.12%
105,814.08
4.92%
64.40
9,152.28
A
0.02
3133TCE95
FHLMC FSPC E3 A
3,020.20
03/11/1998
3,023.37
96.84
2,924.72
0.00%
Aaa / AA+
9.88
3.771% Due 08/15/2032
3.73%
3,021.11
4.05%
9.49
(96.39)
AAA
0.77
31397QREO
FNMA FNR 2011-3 FA
79,124.45
12/20/2010
79,099.75
101.78
80,530.49
0.01%
Aaa / AA+
18.42
3.053% Due 02/25/2041
3.06%
79,109.34
3.51%
40.26
1,421.15
AAA
0.12
31394JY35
FHLMC FSPC T-58 2A
418,226.04
06/09/2011
473,640.99
107.56
449,854.38
0.06%
Aaa / AA+
21.00
6.500% Due 09/25/2043
5.40%
454,245.05
3.29%
453.08
(4,390.67)
AAA
2.43
11,235,920.14
10,247,300.95
1.47%
Aaa / AAA
3.97
TOTAL CMO
10,616,995.46
1.59%
11,061,930.61
4.52%
26,779.73
(814,629.66)
Aaa
2.65
Corporate
808513AT2
Charles Schwab Corp Callable Note Cont 12/25/2022
4,000,000.00
05/21/2019
3,987,840.00
99.62
3,984,920.00
0.57%
A2 / A
0.32
2.650% Due 01/25/2023
2.74%
3,998,949.69
3.83%
19,433.33
(14,029.69)
A
0.32
00440EAP2
Chubb INA Holdings Inc Note
2,000,000.00
05/24/2018
1,937,000.00
99.28
1,985,520.00
0.28%
A3 / A
0.45
2.700% Due 03/13/2023
3.42%
1,994,128.64
4.32%
2,700.00
(8,608.64)
A
0.44
69353RFL7
PNC Bank Callable Note Cont 5/9/2023
5,000,000.00
Various
4,993,318.05
99.43
4,971,490.00
0.72%
A2 / A
0.69
3.500% Due 06/08/2023
3.53%
4,999,083.77
4.34%
54,930.56
(27,593.77)
A+
0.67
02665WCJ8
American Honda Finance Note
845,000.00
07/11/2018
843,538.15
99.18
838,102.27
0.12%
A3 / A-
0.79
3.450% Due 07/14/2023
3.49%
844,770.78
4.51%
6,235.40
(6,668.51)
A
0.76
02665WCQ2
American Honda Finance Note
2,000,000.00
Various
1,998,320.00
99.13
1,982,548.00
0.29%
A3 / A-
1.03
3.625% Due 10/10/2023
3.64%
1,999,650.95
4.50%
34,437.50
(17,102.95)
A
0.98
24422EUM9
John Deere Capital Corp Note
1,250,000.00
11/28/2018
1,250,237.50
99.31
1,241,337.50
0.18%
A2 / A
1.03
3.650% Due 10/12/2023
3.64%
1,250,050.25
4.34%
21,418.40
(8,712.75)
A
0.99
06051GHF9
Bank of America Corp Callable Note 1X 3/5/2023
6,675,000.00
Various
6,770,625.75
99.22
6,622,894.95
0.95%
A2 / A-
1.43
3.550% Due 03/05/2024
3.16%
6,685,376.68
4.90%
17,113.96
(62,481.73)
AA-
1.36
09247XAL5
Blackrock Inc Note
1,000,000.00
05/09/2019
1,036,330.00
98.58
985,840.00
0.14%
Aa3 / AA-
1.47
3.500% Due 03/18/2024
2.69%
1,010,954.39
4.51%
1,263.89
(25,114.39)
NR
1.41
43 Q1
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
8085136N4
Charles Schwab Corp Callable Note Cont 2/18/2024
2,785,000.00
03/16/2021
2,783,607.50
94.59
2,634,398.34
0.38%
A2 / A
1.47
0.750% Due 03/18/2024
0.77%
2,784,321.54
4.60%
754.27
(149,923.20)
A
1.43
458140BD1
Intel Corp Callable Note Cont 3/11/2024
5,000,000.00
05/09/2019
5,025,900.00
97.47
4,873,250.00
0.70%
Al / A+
1.61
2.875% Due 05/11/2024
2.76%
5,007,737.70
4.52%
55,902.78
(134,487.70)
A+
1.54
037833CU2
Apple Inc Callable Note Cont 3/11/2024
3,000,000.00
05/17/2019
3,017,760.00
97.56
2,926,743.00
0.42%
Aaa / AA+
1.61
2.850% Due 05/11/2024
2.72%
3,005,330.02
4.43%
33,250.00
(78,587.02)
NR
1.54
023135BW5
Amazon.com Inc Note
5,490,000.00
05/10/2021
5,481,984.60
93.77
5,147,698.50
0.74%
Al / AA
1.62
0.450% Due 05/12/2024
0.50%
5,485,692.45
4.49%
9,538.88
(337,993.95)
AA-
1.57
891140CA4
Toronto Dominion Bank Note
3,000,000.00
06/12/2019
3,000,570.00
96.05
2,881,458.00
0.41%
Al / A
1.70
2.650% Due 06/12/2024
2.65%
3,000,193.64
5.10%
24,070.83
(118,735.64)
AA-
1.62
02665WCZ2
American Honda Finance Note
1,219,000.00
07/10/2019
1,213,843.63
96.07
1,171,103.05
0.17%
A3/A-
1.74
2.400% Due 06/27/2024
2.49%
1,217,192.99
4.78%
7,639.07
(46,089.94)
A
1.67
79466LAG9
Salesforce.com Inc Callable Note Cont 7/15/2022
1,350,000.00
06/29/2021
1,349,311.50
93.24
1,258,675.20
0.18%
A2 / A+
1.79
0.625% Due 07/15/2024
0.64%
1,349,590.91
4.60%
1,781.25
(90,915.71)
NR
1.74
78013XZU5
Royal Bank of Canada Note
6,500,000.00
09/10/2019
6,581,445.00
95.92
6,234,566.00
0.90%
Al / A
1.79
2.550% Due 07/16/2024
2.28%
6,530,110.25
4.95%
34,531.25
(295,544.25)
AA-
1.71
46647PAUO
JP Morgan Chase & Co Callable Note 1X 7/23/2023
2,500,000.00
09/12/2019
2,632,175.00
98.64
2,466,117.50
0.35%
Al/A-
1.81
3.797% Due 07/23/2024
2.35%
2,527,732.31
5.01%
17,930.28
(61,614.81)
AA-
1.71
02665WEA5
American Honda Finance Note
6,000,000.00
Various
5,979,632.85
92.81
5,568,450.01
0.80%
A3/A-
2.29
1.500% Due 01/13/2025
1.62%
5,984,160.53
4.86%
19,500.00
(415,710.52)
A
2.19
90331HPL1
US Bank NA Callable Note Cont 12/21/2024
7,270,000.00
01/16/2020
7,254,514.90
94.06
6,838,278.32
0.98%
Al / AA-
2.31
2.050% Due 01/21/2025
2.10%
7,262,854.99
4.80%
28,979.03
(424,576.67)
AA-
2.20
037833AZ3
Apple Inc Note
3,922,000.00
07/14/2021
4,154,496.16
95.48
3,744,556.95
0.54%
Aaa / AA+
2.36
2.500% Due 02/09/2025
0.81%
4,075,689.95
4.54%
14,162.78
(331,133.00)
NR
2.24
00440EAS6
Chubb INA Holdings Inc Note
2,000,000.00
10/28/2020
2,203,740.00
95.95
1,918,998.00
0.27%
A3 / A
2.46
3.150% Due 03/15/2025
0.78%
2,114,308.73
4.92%
2,800.00
(195,310.73)
A
2.32
06367WB85
Bank of Montreal Note
7,000,000.00
08/12/2021
7,226,940.00
92.02
6,441,057.00
0.93%
A2 / A-
2.59
1.850% Due 05/01/2025
0.96%
7,158,053.49
5.19%
53,958.33
(716,996.49)
AA-
2.45
14913R2V8
Caterpillar Financial Service Note
3,485,000.00
05/10/2022
3,480,574.05
96.71
3,370,507.30
0.49%
A2 / A
2.62
3.400% Due 05/13/2025
3.44%
3,481,143.45
4.75%
45,421.17
(110,636.15)
A
2.44
747525AFO
Qualcomm Inc Callable Note Cont 2/20/2025
8,000,000.00
Various
8,479,891.80
96.81
7,744,712.00
1.12%
A2 / A
2.64
3.450% Due 05/20/2025
1.63%
8,370,789.19
4.75%
100,433.33
(626,077.19)
NR
2.45
61747YEA9
Morgan Stanley Callable Note Cont 5/30/2024
8,885,000.00
05/26/2021
8,889,710.25
92.06
8,179,762.01
1.17%
Al/A-
2.67
0.790% Due 05/30/2025
0.77%
8,887,613.46
5.01%
23,592.14
(707,851.45)
A
2.56
44 Q11
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
438516CBO
Honeywell Intl Callable Note Cont 5/1/2025
5,000,000.00
06/23/2020
5,119,000.00
92.05
4,602,565.00
0.66%
A2 / A
2.67
1.350% Due 06/01/2025
0.85%
5,063,363.64
4.54%
22,500.00
(460,798.64)
A
2.56
78015K7H1
Royal Bank of Canada Note
4,000,000.00
Various
4,013,620.00
90.25
3,610,060.00
0.52%
Al / A
2.70
1.150% Due 06/10/2025
1.10%
4,005,187.84
5.07%
14,183.33
(395,127.84)
AA-
2.58
66815L2J7
Northwestern Mutual Glbl Note
7,485,000.00
06/27/2022
7,482,455.10
97.42
7,291,610.06
1.05%
Aaa / AA+
2.75
4.000% Due 07/01/2025
4.01%
7,482,668.72
5.01%
74,850.00
(191,058.66)
AAA
2.54
06406HCQO
Bank of New York Callable Note Cont 10/18/2025
1,500,000.00
04/05/2022
1,537,365.00
97.34
1,460,085.00
0.21%
Al / A
3.14
3.950% Due 11/18/2025
3.20%
1,532,238.17
4.87%
21,889.58
(72,153.17)
AA-
2.86
06051GHY8
Bank of America Corp Callable Note Cont 2/13/2025
2,500,000.00
03/04/2021
2,583,450.00
91.68
2,292,010.00
0.33%
A2 / A-
3.38
2.015% Due 02/13/2026
1.14%
2,550,255.70
5.41%
6,716.67
(258,245.70)
AA-
3.17
46647PBH8
JP Morgan Chase & Co Callable Note Mthly 3/13/2025
3,500,000.00
Various
3,602,345.00
91.59
3,205,716.50
0.46%
Al/A-
3.45
2.005% Due 03/13/2026
1.24%
3,563,345.86
5.43%
3,508.75
(357,629.36)
AA-
3.25
40139LBD4
Guardian Life Glob Fun Note
3,250,000.00
02/09/2022
3,124,290.00
87.25
2,835,560.00
0.41%
Aa1 / AA+
3.62
1.250% Due 05/13/2026
2.21%
3,143,081.70
5.16%
15,572.92
(307,521.70)
NR
3.44
91324PEC2
United Health Group Inc Callable Note Cont 4/15/2026
4,000,000.00
Various
3,904,703.05
88.53
3,541,256.00
0.51%
A3 / A+
3.62
1.150% Due 05/15/2026
1.74%
3,917,646.25
4.62%
17,377.78
(376,390.25)
A
3.46
89236TJK2
Toyota Motor Credit Corp Note
7,285,000.00
06/15/2021
7,281,794.60
87.51
6,374,986.94
0.91%
Al / A+
3.72
1.125% Due 06/18/2026
1.13%
7,282,619.65
4.84%
23,448.59
(907,632.71)
A+
3.55
06051GJD2
Bank of America Corp Callable Note Cont 6/19/2025
2,250,000.00
06/24/2021
2,254,432.50
88.77
1,997,392.50
0.29%
A2/A-
3.72
1.319% Due 06/19/2026
1.27%
2,253,028.26
5.41%
8,408.63
(255,635.76)
AA-
3.52
58989V2D5
Met Tower Global Funding Note
3,745,000.00
09/07/2021
3,741,554.60
86.05
3,222,411.47
0.46%
Aa3 / AA-
3.96
1.250% Due 09/14/2026
1.27%
3,742,275.38
5.20%
2,210.59
(519,863.91)
AA-
3.76
06368FAC3
Bank of Montreal Note
3,000,000.00
Various
2,994,647.40
85.53
2,566,011.00
0.37%
A2 / A-
3.96
1.250% Due 09/15/2026
1.29%
2,995,764.24
5.35%
1,666.67
(429,753.24)
AA-
3.76
931142ERO
Wal-Mart Stores Callable Note Cont 08/17/2026
1,725,000.00
09/08/2021
1,721,739.75
87.29
1,505,769.75
0.22%
Aa2 / AA
3.97
1.050% Due 09/17/2026
1.09%
1,722,416.44
4.59%
704.38
(216,646.69)
AA
3.80
59217GER6
Metlife Note
5,920,000.00
01/03/2022
5,913,251.20
87.50
5,179,881.60
0.74%
Aa3 / AA-
4.28
1.875% Due 01/11/2027
1.90%
5,914,223.23
5.17%
24,666.67
(734,341.63)
AA-
4.00
89114TZN5
Toronto -Dominion Bank Note
2,000,000.00
01/25/2022
1,984,582.40
87.04
1,740,794.00
0.25%
Al / A
4.29
1.950% Due O1/12/2027
2.11%
1,986,685.19
5.38%
8,558.33
(245,891.19)
AA-
3.99
808513BYO
Charles Schwab Corp Callable Note Cont 2/3/2027
2,325,000.00
03/O1/2022
2,322,489.00
89.78
2,087,389.65
0.30%
A2 / A
4.42
2.450% Due 03/03/2027
2.47%
2,322,780.53
5.06%
4,430.42
(235,390.88)
A
4.09
45 Q11
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
89114TZT2
Toronto -Dominion Bank Note
5,000,000.00
03/09/2022
4,960,350.00
90.18
4,508,840.00
0.65%
Al/A
4.44
2.800% Due 03/10/2027
2.97%
4,964,782.11
5.31%
8,166.67
(455,942.11)
NR
4.08
084664CZ2
Berkshire Hathaway Callable Note Cont 2/15/2027
6,875,000.00
03/07/2022
6,873,693.75
91.05
6,259,873.13
0.90%
Aa2 / AA
4.46
2.300% Due 03/15/2027
2.30%
6,873,836.82
4.54%
7,027.78
(613,963.69)
A+
4.15
89236TJZ9
Toyota Motor Credit Corp Note
2,000,000.00
06/03/2022
1,945,900.00
92.13
1,842,570.00
0.26%
Al / A+
4.48
3.050% Due 03/22/2027
3.67%
1,949,488.11
5.04%
1,525.00
(106,918.11)
A+
4.10
023135CF1
Amazon.com Inc Callable Note Cont 3/13/2027
2,000,000.00
04/25/2022
1,996,540.00
94.43
1,888,540.00
0.27%
Al / AA
4.54
3.300% Due 04/13/2027
3.34%
1,996,839.79
4.68%
30,800.00
(108,299.79)
AA-
4.08
46647PCBO
JP Morgan Chase & Co Callable Note Cont 4/22/2026
5,000,000.00
08/23/2022
4,498,450.00
86.40
4,320,205.00
0.62%
Al / A-
4.56
1.578% Due 04/22/2027
4.45%
4,509,359.67
5.46%
34,847.50
(189,154.67)
AA-
4.25
927804GH1
Virginia Electric Power Corp Callable Note Cont.
5,735,000.00
Various
5,736,523.40
94.44
5,416,242.98
0.78%
A2 / BBB+
4.62
4/15/2027
3.74%
5,736,496.97
5.11%
72,284.90
(320,253.99)
A
4.12
3.750% Due 05/15/2027
14913R3A3
Caterpillar Financial Service Note
3,250,000.00
Various
3,213,062.50
94.46
3,069,943.50
0.44%
A2 / A
4.87
3.600% Due 08/12/2027
3.85%
3,213,510.66
4.89%
15,925.00
(143,567.16)
A
4.37
931142EX7
Wal-Mart Stores Callable Note Cont 09/09/2027
4,995,000.00
Various
4,989,807.70
96.93
4,841,568.59
0.69%
Aa2 / AA
4.95
3.950% Due 09/09/2027
3.97%
4,989,870.26
4.65%
12,057.38
(148,301.67)
AA
4.42
24422EWK1
John Deere Capital Corp Note
2,000,000.00
09/20/2022
1,972,620.00
97.09
1,941,782.00
0.28%
A2 / A
4.96
4.150% Due 09/15/2027
4.46%
1,972,755.47
4.82%
5,302.78
(30,973.47)
A
4.41
26.38%
197,341,973.64
183,616,048.57 (13,093,952.84
Al / A+
2.86
TOTAL Corporate
196,516,000.00
2.22%
196,710,001.41
4.86%
1,070,408.75
)
A+
2.68
Money Market Fund
31846V567
First American Govt Obligation MMKT Class-Z
1,310,134.17
Various
1,310,134.17
1.00
1,310,134.17
0.19%
Aaa/AAA
0.00
2.72%
1,310,134.17
2.72%
0.00
0.00
AAA
0.00
1,310,134.17
1,310,134.17
0.19%
Aaa / AAA
0.00
TOTAL Money Market Fund
1,310,134.17
2.72%
1,310,134.17
2.72%
0.00
0.00
Aaa
0.00
Mortgage Pass
Thru
36225CAZ9
GNMA Pool# G2 80023
7,177.10
08/08/1997
7,295.96
99.24
7,122.39
0.00%
Aaa / AA+
4.22
1.790% Due 12/20/2026
1.68%
7,194.20
3.67%
10.71
(71.81)
AAA
1.74
36225CC20
GNMA Pool# G2 80088
5,090.32
08/11/1997
5,201.67
98.81
5,029.74
0.00%
Aaa / AA+
4.72
3.510% Due 06/20/2027
3.37%
5,107.94
4.64%
14.89
(78.20)
AAA
1.82
46 C11%
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
31348SWZ3
FHLMC FH 786064
1,126.45
02/18/2000
1,099.02
98.09
1,104.89
0.00%
Aaa / AA+
5.26
2.227% Due 01/01/2028
2.41%
1,121.28
5.88%
2.09
(16.39)
AAA
1.08
31371NUC7
FNMA FN 257179
5,700.13
12/05/2011
6,028.46
97.14
5,537.26
0.00%
Aaa / AA+
5.51
4.500% Due 04/01/2028
3.72%
5,810.90
5.84%
21.38
(273.64)
AAA
1.98
31417YAY3
FNMA Pool# FN MA0022
6,667.68
12/05/2011
7,051.72
97.40
6,494.39
0.00%
Aaa / AA+
6.51
4.500% Due 04/01/2029
3.76%
6,811.94
5.57%
25.00
(317.55)
AAA
2.24
3138EG6F6
FNMA FN AL0869
3,944.11
12/05/2011
4,171.29
97.40
3,841.76
0.00%
Aaa / AA+
6.67
4.500% Due 06/01/2029
3.77%
4,030.80
5.55%
3.45
(189.04)
AAA
2.29
36225CNM4
GNMA Pool# G2 80395
3,046.83
03/15/2000
3,019.20
98.84
3,011.43
0.00%
Aaa / AA+
7.56
3.510% Due 04/20/2030
3.59%
3,039.85
4.80%
8.91
(28,42)
AAA
3.29
36225CN28
GNMA Pool# G2 80408
26,109.64
03/15/2000
25,844.44
98.85
25,809.22
0.00%
Aaa / AA+
7.64
3.510% Due 05/20/2030
3.60%
26,042.14
4.78%
76.37
(232.92)
AAA
3.12
31403GXF4
FNMA Pool# FN 748678
750.37
06/10/2013
806.64
97.88
734.46
0.00%
Aaa / AA+
11.01
5.000% Due 10/01/2033
4.16%
780.99
5.56%
3.13
(46.53)
AAA
3.55
36225DCB8
GNMA Pool# G2 80965
20,771.84
07/19/2004
20,758.86
98.24
20,405.96
0.00%
Aaa / AA+
11.81
1.590% Due 07/20/2034
1.59%
20,766.72
4.71%
27.52
(360.76)
AAA
2.83
31406XWT5
FNMA Pool# FN 823358
18,758.84
01/11/2006
18,612.29
100.36
18,826.30
0.00%
Aaa / AA+
12.35
2.027% Due 02/01/2035
2.08%
18,696.54
2.86%
31.69
129.76
AAA
0.59
31406PQY8
FNMA Pool# FN 815971
66,214.97
06/10/2013
71,181.10
100.91
66,814.48
0.01%
Aaa / AA+
12.42
5.000% Due 03/01/2035
4.21%
69,065.51
4.73%
275.90
(2,251.03)
AAA
3.81
31407BXH7
FNMA Pool# FN 826080
8,702.16
06/10/2013
9,354.80
100.90
8,780.87
0.00%
Aaa / AA+
12.76
5.000% Due 07/01/2035
4.22%
9,081.00
4.73%
36.26
(300.13)
AAA
3.82
31376KT22
FNMA FN 357969
43,750.05
06/10/2013
47,031.30
100.58
44,005.07
0.01%
Aaa / AA+
12.93
5.000% Due 09/01/2035
4.22%
45,665.30
4.82%
42.53
(1,660.23)
AAA
3.88
31403DJZ3
FNMA Pool #745580
44,350.71
06/10/2013
47,677.01
100.91
44,752.97
0.01%
Aaa / AA+
13.68
5.000% Due 06/01/2036
4.26%
46,337.65
4.73%
184.79
(1,584.68)
AAA
3.90
31410F4V4
FNMA Pool# FN 888336
73,186.46
06/10/2013
78,675.47
100.91
73,850.92
0.01%
Aaa / AA+
13.76
5.000% Due 07/01/2036
4.25%
76,473.19
4.73%
304.94
(2,622.27)
AAA
3.87
353,809.23
336,122.11
0.05%
Aaa / AA+
11.90
TOTAL Mortgage Pass Thru
335,347.66
3.81%
346,025.95
4.67%
1,069.56
(9,903.84)
Aaa
3.39
c�4,.F
47 �,
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
Negotiable CD
86959RTWO
Svenska Handelsbanken NY Yankee CD
6,000,000.00
10/15/2021
6,000,302.58
99.89
5,993,382.00
0.86%
P-1 / A-1+
0.04
0.255% Due 10/14/2022
0.25%
6,000,010.81
3.09%
14,917.50
(6,628.81)
F-1+
0.04
6,000,302.58
5,993,382.00
0.86%
Aaa / AAA
0.04
TOTAL Negotiable CD
6,000,000.00
0.25%
61000,010.81
3.09%
14,917.50
(6,628.81)
Aaa
0.04
Supranational
4581XODZ8
Inter -American Dev Bank Note
10,775,000.00
09/15/2021
10,767,026.50
92.88
10,008,251.00
1.43%
Aaa / AAA
1.98
0.500% Due 09/23/2024
0.52%
10,769,740.11
4.29%
1,197.22
(761,489.11)
NR
1.93
459058JBO
Intl. Bank Recon & Development Note
6,245,000.00
04/15/2020
6,220,831.85
91.04
5,685,547.92
0.81%
Aaa / AAA
2.56
0.625% Due 04/22/2025
0.70%
6,232,637.98
4.36%
17,238.80
(547,090.06)
NR
2.48
4581XODN5
Inter -American Dev Bank Note
5,050,000.00
01/13/2021
5,071,967.50
90.23
4,556,493.80
0.65%
Aaa / AAA
2.79
0.625% Due 07/15/2025
0.53%
5,063,619.31
4.38%
6,663.19
(507,125.51)
NR
2.71
459058JL8
Intl. Bank Recon & Development Note
15,000,000.00
Various
14,964,951.60
88.98
13,346,265.00
1.91%
Aaa / AAA
3.08
0.500% Due 10/28/2025
0.55%
14,977,313.55
4.37%
31,875.00
(1,631,048.55)
AAA
2.98
4581XODV7
Inter -American Dev Bank Note
13,370,000.00
04/13/2021
13,308,765.40
88.72
11,861,730.30
1.70%
Aaa / AAA
3.56
0.875% Due 04/20/2026
0.97%
13,326,505.33
4.33%
52,319.41
(1,464,775.03)
AAA
3.42
50,333,542.85
45,458,288.02
6.51%
Aaa / AAA
2.87
TOTAL Supranational
50,440,000.00
0.67%
50,369,816.28
4.34%
109,293.62 (4,911,528.26)
Aaa
2.78
US Treasury
912828U57
US Treasury Note
4,000,000.00
Various
3,926,302.08
97.57
3,902,656.00
0.56%
Aaa / AA+
1.17
2.125% Due 11/30/2023
2.53%
3,982,243.98
4.28%
28,565.58
(79,587.98)
AAA
1.13
91282CBA8
US Treasury Note
1,500,000.00
12/29/2020
1,498,007.81
95.18
1,427,637.00
0.20%
Aaa / AA+
1.21
0.125% Due 12/15/2023
0.17%
1,499,188.37
4.27%
553.28
(71,551.37)
AAA
1.18
91282CDR9
US Treasury Note
5,000,000.00
12/28/2021
5,000,195.31
95.75
4,787,500.00
0.69%
Aaa / AA+
1.25
0.750% Due 12/31/2023
0.75%
5,000,122.00
4.28%
9,476.90
(212,622.00)
AAA
1.22
912828V80
US Treasury Note
7,500,000.00
Various
7,491,503.91
97.36
7,301,662.50
1.05%
Aaa / AA+
1.34
2.250% Due 01/31/2024
2.27%
7,497,629.01
4.31%
28,430.70
(195,966.51)
AAA
1.29
912828W48
US Treasury Note
10,000,000.00
04/24/2019
9,911,718.75
97.03
9,702,730.00
1.39%
Aaa / AA+
1.42
2.125% Due 02/29/2024
2.32%
9,974,278.30
4.31%
18,197.51
(271,548.30)
AAA
1.37
912828WJ5
US Treasury Note
7,000,000.00
06/10/2019
7,193,046.88
97.16
6,800,934.00
0.98%
Aaa / AA+
1.62
2.500% Due 05/15/2024
1.91%
7,063,490.97
4.33%
66,100.54
(262,556.97)
AAA
1.55
912828XX3
US Treasury Note
5,000,000.00
07/12/2019
5,028,710.94
96.18
4,808,985.00
0.69%
Aaa / AA+
1.75
2.000% Due 06/30/2024
1.88%
5,010,109.04
4.29%
25,271.74
(201,124.04)
AAA
1.68
48 Q1
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
912828WUO
US Treasury Inflation Index Note
12,976,808.00
Various
12,865,480.17
96.59
12,534,272.89
1.79%
Aaa / AA+
1.79
0.125% Due 07/15/2024
0.21%
12,956,819.81
2.07%
3,438.21
(422,546.92)
AAA
1.77
91282CCX7
US Treasury Note
10,500,000.00
Various
10,377,363.28
92.80
9,743,674.50
1.39%
Aaa / AA+
1.96
0.375% Due 09/15/2024
0.81%
10,412,391.28
4.25%
1,740.33
(668,716.78)
AAA
1.91
912828YH7
US Treasury Note
14,000,000.00
Various
13,859,296.88
94.83
13,275,934.00
1.90%
Aaa / AA+
2.00
1.500% Due 09/30/2024
1.72%
13,941,217.43
4.22%
576.92
(665,283.43)
AAA
1.94
9128283J7
US Treasury Note
16,500,000.00
Various
16,783,886.72
95.62
15,776,838.00
2.27%
Aaa / AA+
2.17
2.125% Due 11/30/2024
1.76%
16,624,201.16
4.26%
117,832.99
(847,363.16)
AAA
2.07
91282CDZ1
US Treasury Note
5,000,000.00
05/06/2022
4,812,890.63
93.75
4,687,500.00
0.67%
Aaa / AA+
2.38
1.500% Due 02/15/2025
2.92%
4,839,673.31
4.30%
9,578.80
(152,173.31)
AAA
2.29
912828ZL7
US Treasury Note
12,000,000.00
Various
11,998,515.63
90.60
10,872,192.00
1.56%
Aaa / AA+
2.58
0.375% Due 04/30/2025
0.38%
11,999,204.27
4.25%
18,831.52
(1,127,012.27)
AAA
2.52
91282CFE6
US Treasury Note
5,000,000.00
09/27/2022
4,826,171.88
96.95
4,847,655.00
0.70%
Aaa / AA+
2.88
3.125% Due 08/15/2025
4.42%
4,826,667.59
4.26%
19,955.84
20,987.41
AAA
2.70
91282CAM3
US Treasury Note
6,500,000.00
10/16/2020
6,477,656.25
88.89
5,777,635.50
0.83%
Aaa / AA+
3.00
0.250% Due 09/30/2025
0.32%
6,486,460.21
4.23%
44.64
(708,824.71)
AAA
2.93
91282CBC4
US Treasury Note
10,000,000.00
Various
9,943,320.32
88.44
8,844,140.00
1.26%
Aaa / AA+
3.25
0.375% Due 12/31/2025
0.50%
9,961,373.60
4.22%
9,476.90
(1,117,233.60)
AAA
3.16
91282CBH3
US Treasury Note
18,000,000.00
Various
17,781,875.00
88.09
15,856,884.00
2.27%
Aaa / AA+
3.34
0.375% Due 01/31/2026
0.63%
17,851,646.86
4.24%
11,372.28
(1,994,762.86)
AAA
3.24
91282CBT7
US Treasury Note
10,000,000.00
Various
9,943,359.37
88.81
8,880,860.00
1.27%
Aaa / AA+
3.50
0.750% Due 03/31/2026
0.87%
9,960,300.06
4.22%
206.04
(1,079,440.06)
AAA
3.39
91282CCF6
US Treasury Note
7,500,000.00
06/18/2021
7,443,750.00
88.34
6,625,485.00
0.95%
Aaa / AA+
3.67
0.750% Due 05/31/2026
0.91%
7,458,303.32
4.22%
18,903.69
(832,818.32)
AAA
3.54
91282CCW9
US Treasury Note
8,000,000.00
Various
7,874,375.01
87.73
7,018,752.00
1.00%
Aaa / AA+
3.92
0.750% Due 08/31/2026
1.08%
7,898,837.82
4.18%
5,138.13
(880,085.82)
AAA
3.78
91282CDG3
US Treasury Note
19,250,000.00
Various
19,119,013.68
88.71
17,076,097.50
2.45%
Aaa / AA+
4.09
1.125% Due 10/31/2026
1.27%
19,140,647.40
4.16%
90,626.69
(2,064,549.90)
AAA
3.90
912828Z78
US Treasury Note
18,500,000.00
Various
17,870,410.15
89.68
16,591,466.00
2.38%
Aaa / AA+
4.34
1.500% Due O1/31/2027
2.25%
17,931,563.14
4.12%
46,752.72
(1,340,097.14)
AAA
4.11
91282CEN7
US Treasury Note
17,000,000.00
Various
16,417,148.44
94.43
16,052,386.00
2.32%
Aaa / AA+
4.58
2.750% Due 04/30/2027
3.53%
16,434,705.33
4.09%
195,638.58
(382,319.33)
AAA
4.20
49 cif
Table of Contents
Holdings Report
Orange County Sanitation District Long Term - Account #10268
As of September 30, 2022
91282CEW7 US Treasury Note
20,500,000.00 Various
20,645,273.45
96.43
19,768,888.00 2.85%
Aaa / AA+
4.75
3.250% Due 06/30/2027
3.09%
20,640,923.08
4.08%
168,372.96 (872,035.08)
AAA
4.31
33.40%
249,089,272.54
232,962,764.89 (16,429,232.45
Aaa / AA+
3.02
TOTAL US Treasury
251,226,808.00 1.64%
249,391,997.34
4.10%
895,083.49 )
Aaa
2.87
745,928,649.87
100.00%
697,508,524.37
Aa1 / AA
2.78
TOTAL PORTFOLIO
o
745,156,449.59 1.67%
744,446,681.61
a
4.42 /0
2:660:393.05 (46,938,157.24
Aaa
2.41
TOTAL MARKET VALUE PLUS ACCRUALS 700,168,917.42
50 Ci'
Table of Contents
Holdings Report As of September 30, 2022
Orange County Sanitation District Liquid - Account #10282
313385S80 FHLB Discount Note 5,000,000.00 09/29/2022 4,966,597.22 99.35 4,967,500.00 4.54% P-1 / A-1+ 0.20
3.250% Due 12/12/2022 3.32% 4,967,500.00 3.32% 0.00 0.00 F-1+ 0.20
3137EAES4 FHLMC Note 1,250,000.00 09/28/2022 1,214,137.50 97.21 1,215,062.50 1.11% Aaa / AA+ 0.74
0.250% Due 06/26/2023 4.22% 1,214,403.15 4.13% 824.65 659.35 AAA 0.72
6,180,734.72
6,182,562.50
5.65%
Aaa / AAA
0.31
TOTAL Agency
6,250,000.00
3.49%
6,181,903.15
3.48%
824.65
659.35
Aaa
0.30
Corporate
911312AQ9
UPS Note
2,400,000.00
04/25/2022
2,407,152.00
100.00
2,400,000.00
2.22%
A2 / A
0.00
2.450% Due 10/01/2022
1.75%
2,400,000.00
2.45%
29,400.00
0.00
NR
0.00
06051GEU9
Bank of America Corp Note
2,000,000.00
04/25/2022
2,018,300.00
99.75
1,995,028.00
1.84%
A2 / A-
0.28
3.300% Due 01/11/2023
1.98%
2,007,206.95
4.17%
14,666.67
(12,178.95)
AA-
0.28
59217GEE5
Metlife Note
2,255,000.00
03/09/2022
2,259,126.65
99.33
2,239,844.15
2.06%
Aa3 / AA-
0.29
1.950% Due 01/13/2023
1.73%
2,256,393.41
4.31%
9,527.38
(16,549.26)
AA-
0.28
61744YAN8
Morgan Stanley Note
1,998,000.00
Various
1,997,154.18
99.67
1,991,440.57
1.83%
Al/A-
0.32
3.125% Due 01/23/2023
3.22%
1,997,365.89
4.16%
11,793.75
(5,925.32)
A
0.31
46625HJH4
JP Morgan Chase Note
2,000,000.00
02/03/2022
2,042,640.00
99.68
1,993,604.00
1.83%
Al/A-
0.32
3.200% Due 01/25/2023
0.98%
2,014,051.82
4.19%
11,733.33
(20,447.82)
AA-
0.32
06406RAM9
Bank of NY Mellon Corp Callable Note Cont 1/2/2023
1,585,000.00
03/09/2022
1,589,501.40
99.36
1,574,802.11
1.44%
Al / A
0.33
1.850% Due 01/27/2023
1.49%
1,586,409.53
3.84%
5,212.89
(11,607.42)
AA-
0.32
927804FN9
Virginia Electric Power Corp Callable Note Cont
2,000,000.00
06/01/2022
2,003,940.00
99.00
1,980,080.00
1.81%
A2 / BBB+
0.45
12/15/2022
2.38%
2,001,515.38
4.97%
2,444.44
(21,435.38)
A
0.45
2.750% Due 03/15/2023
14,317,814.23
14,174,798.83
13.03%
Al / A
0.27
TOTAL Corporate
14,238,000.00
1.94%
14,262,942.98
3.97%
84,778.46
(88,144.15)
A+
0.27
Money Market
Fund
31846V567
First American Govt Obligation MMKT Class-Z
3,225,313.99
Various
3,225,313.99
1.00
3,225,313.99
2.95%
Aaa / AAA
0.00
2.72%
3,225,313.99
2.72%
0.00
0.00
AAA
0.00
3,225,313.99
3,225,313.99
2.95%
Aaa / AAA
0.00
TOTAL Money Market Fund
3,225,313.99
2.72%
3,225,313.99
2.72%
0.00
0.00
Aaa
0.00
51 Q1
Table of Contents
Holdings Report
Orange County Sanitation District Liquid - Account #10282
Negotiable CD AL
As of September 30, 2022
78012UW43
Royal Bank of Canada Yankee CD
2,000,000.00
05/26/2022
1,986,927.04
99.84
1,996,862.00
1.83%
P-1 / A-1+
0.05
0.270% Due 10/20/2022
1.88%
1,998,310.30
3.09%
5,175.00
(1,448.30)
F-1+
0.05
89114WJB2
Toronto Dominion Yankee CD
2,000,000.00
05/27/2022
1,987,255.53
99.84
1,996,834.00
1.83%
P-1 / A-1+
0.05
0.270% Due 10/20/2022
1.85%
1,998,341.47
3.12%
5,175.00
(1,507.47)
F-1+
0.05
96130ALA4
Westpac Banking Corp NY Yankee CD
4,000,000.00
05/25/2022
3,974,475.71
99.79
3,991,776.00
3.66%
P-1 / A-1+
0.07
0.300% Due 10/26/2022
1.80%
3,995,856.45
3.14%
11,333.33
(4,080.45)
F-1
0.07
55380TXV7
MUFG Bank Yankee CD
2,500,000.00
04/26/2022
2,479,919.65
99.76
2,493,977.50
2.29%
P-1 / A-1
0.08
0.300% Due 10/31/2022
1.85%
2,496,795.69
3.10%
7,250.00
(2,818.19)
F-1
0.08
78012U3M5 Royal Bank of Canada Yankee CD
3,000,000.00
02/11/2022
3,000,000.00
99.01
2,970,264.00
2.74%
P-1 / A-1+
0.38
1.350% Due 02/14/2023
1.35%
3,000,000.00
3.96%
25,762.50
(29,736.00)
F-1+
0.37
89114WW68 Toronto Dominion Yankee CD
3,000,000.00
04/29/2022
3,000,000.00
98.95
2,968,374.00
2.74%
P-1 / A-1+
0.58
2.680% Due 04/28/2023
2.68%
3,000,000.00
4.48%
34,616.67
(31,626.00)
F-1+
0.56
16,428,577.93
16,418,087.50
15.08%
Aaa / AAA
0.22
TOTAL Negotiable CD
16,500,000.00
1.90%
16,489,303.91
3.52%
89,312.50
(71,216.41)
Aaa
0.21
US Treasury
912796YR4 US Treasury Bill
10,000,000.00
07/28/2022
9,917,672.22
99.63
9,963,094.44
9.10%
P-1 / A-1+
0.15
2.555% Due 11/22/2022
2.61%
9,963,094.44
2.61%
0.00
0.00
F-1+
0.14
91282CBG5 US Treasury Note
60,000,000.00
Various
59,283,593.76
98.84
59,305,260.00
54.19%
Aaa / AA+
0.34
0.125% Due 01/31/2023
1.76%
59,675,607.17
3.63%
12,635.87
(370,347.17)
AAA
0.33
69,201,265.98
69,268,354.44
63.30%
Aaa / AA+
0.31
TOTAL US Treasury
70,000,000.00
1.89%
69,638,701.61
3.48%
12,635.87
(370,347.17)
Aaa
0.30
109,353,706.85
109,269,117.26
100.00%
Aal / AA+
0.28
TOTAL PORTFOLIO
110,213,313.99
2.01%
109,798,165.64
3.53%
187,551.48
(529,048.38)
Aaa
0.28
TOTAL MARKET VALUE PLUS ACCRUALS
109,456,668.74
52 Q11
Table of Contents
Holdings Report
OC SAN Lehman Exposure - Account #10284
Common Stock
As of September 30, 2022
SLHOPNTA4 Lehman Brothers, Inc Open Position Long Exposure
60,641.49
11/21/2014
57,842.64
0.42
25,621.03
72.70%
NR/NR
0.00
0.000% Due09/30/2022
0.00%
57,842.64
0.00%
0.00
(32,221.61)
NR
0.00
57,842.64
25,621.03
72.70%
NR / NR
0.00
TOTAL Common Stock
60,641.49
0.00%
57,842.64
0.00%
0.00
(32,221.61)
NR
0.00
Corporate
525ESCIB7 Lehman Brothers Note -Defaulted
600,000.00
09/19/2008
316,145.76
0.37
2,220.00
6.30%
NR/NR
0.32
0.000% Due 01/24/2023
0.00%
316,145.76
0.00%
0.00
(313,925.76)
NR
0.00
525ESCOY6 Lehman Brothers Note -Defaulted
2,000,000.00
09/18/2008
1,018,441.83
0.37
7,400.00
21.00%
NR/NR
27.08
0.000% Due 10/22/2049
0.00%
1,018,441.83
0.00%
0.00
(1,011,041.83)
NR
0.00
1,334,587.59
9,620.00
27.30%
NR/NR
20.90
TOTAL Corporate
2,600,000.00
0.00%
1,334,587.59
0.00%
0.00 (1,324,967.59)
NR
0.00
1,392,430.23 35,241.03 100.00% NR/NR 5.71
TOTAL PORTFOLIO 2,660,641.49 0.00% 1,392,430.23 0.00% 0.00 (1,357,189.20) NR 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 35,241.03
53 Cift
Table of Contents
V 14
Section 5 1 Transactions
54 ��`
Table of Contents
Transaction Ledger
June 30, 2022 through September 30, 2022
ACQUISITIONS
Purchase
07/01/2022
668151-2J7
Purchase
07/20/2022
47800AAC4
Purchase
08/08/2022
91282CEW7
Purchase
08/10/2022
91282CEW7
Purchase
08/11/2022
92348KAV5
Purchase
08/11/2022
927804GH1
Purchase
08/19/2022
14913R3A3
Purchase
08/25/2022
46647PCBO
Purchase
08/26/2022
91282CEW7
Purchase
08/31/2022
91282CEW7
Purchase
09/09/2022
931142EX7
Purchase
09/09/2022
931142EX7
Purchase
09/13/2022
14913R3A3
Purchase
09/22/2022
24422EWK1
Orange County Sanitation District Long Term - Account #10268
7,485,000.00
Northwestern Mutual Glbl Note
99.966
4% Due:07/01/2025
3,140,000.00
John Deere Owner Trust 2022-B A3
99.990
3.74% Due: 02/16/2027
6,000,000.00
US Treasury Note
101.242
3.25% Due: 06/30/2027
6,000,000.00
US Treasury Note
101.184
3.25% Due:06/30/2027
2,750,000.00
Verizon Master Trust 2022-5 A1A
99.996
3.72% Due:07/20/2027
2,735,000.00
Virginia Electric Power Corp Callable Note Cont.
100.079
4/15/2027
3.75% Due: 05/15/2027
2,000,000.00
Caterpillar Financial Service Note
99.715
3.6% Due: 08/12/2027
5,000,000.00
JP Morgan Chase & Co Callable Note Cont
89.969
4/22/2026
1.578% Due:04/22/2027
5,000,000.00
US Treasury Note
100.246
3.25% Due:06/30/2027
3,500,000.00
US Treasury Note
99.641
3.25% Due:06/30/2027
2,110,000.00
Wal-Mart Stores Callable Note Cont 09/09/2027
99.784
3.95% Due: 09/09/2027
2,885,000.00
Wal-Mart Stores Callable Note Cont 09/09/2027
99.978
3.95% Due: 09/09/2027
1,250,000.00
Caterpillar Financial Service Note
97.501
3.6% Due: 08/12/2027
2,000,000.00
John Deere Capital Corp Note
98.631
4.15% Due:09/15/2027
As of September 30, 2022
4.01%
7,482,455.10
0.00
7,482,455.10
0.00
3.77%
3,139,700.13
0.00
3,139,700.13
0.00
2.97%
6,074,531.25
20,665.76
6,095,197.01
0.00
2.99%
6,071,015.63
21,725.54
6,092,741.17
0.00
3.75%
2,749,879.00
0.00
2,749,879.00
0.00
3.73%
2,737,160.65
20,227.60
2,757,388.25
0.00
3.66%
1,994,300.00
1,400.00
1,995,700.00
0.00
4.45%
4,498,450.00
26,957.50
4,525,407.50
0.00
3.19%
5,012,304.69
25,169.84
5,037,474.53
0.00
3.33%
3,487,421.88
19,164.40
3,506,586.28
0.00
4.00%
2,105,442.40
0.00
2,105,442.40
0.00
3.95%
2,884,365.30
0.00
2,884,365.30
0.00
4.17%
1,218,762.50
3,875.00
1,222,637.50
0.00
4.46%
1,972,620.00
3,227.78
1,975,847.78
0.00
55 Q1
Table of Contents
I Transaction Ledger
Orange County Sanitation District Long Term - Account #10268
June 30, 2022 through September 30, 2022
As of September 30, 2022
Purchase
09/27/2022 91282CEN7
5,000,000.00
US Treasury Note
93.844 4.23% 4,692,187.50
56,046.20
4,748,233.70
0.00
2.75% Due: 04/30/2027
Purchase
09/28/2022 91282CFE6
5,000,000.00
US Treasury Note
96.523 4.42% 4,826,171.88
18,682.07
4,844,853.95
0.00
3.125% Due:08/15/2025
Subtotal
61,855,000.00
60,946,767.91
217,141.69
61,163,909.60
0.00
Security
09/26/2022 912828WUO
317,096.00
US Treasury Inflation Index Note
100.000 317,096.00
78.63
317,174.63
0.00
Contribution
0.125% Due: 07/15/2024
Subtotal
317,096.00
317,096.00
78.63
317,174.63
0.00
TOTAL ACQUISITIONS
62,172,096.00
61,263,863.91
217,220.32
61,481,084.23
0.00
DISPOSITIONS
Sale
07/18/2022
313383QR5
Sale
08/08/2022
9128284D9
Sale
08/10/2022
912828R69
Sale
08/10/2022
912828U57
Sale
08/11/2022
084670BR8
Sale
08/11/2022
91282CBA8
Sale
08/18/2022
58933YAF2
Sale
08/19/2022
58933YAF2
5,000,000.00
FHLB Note
100.060
3.25% Due:06/09/2023
5,000,000.00
US Treasury Note
99.613
2.5% Due: 03/31/2023
1,000,000.00
US Treasury Note
98.742
1.625% Due:05/31/2023
5,000,000.00
US Treasury Note
98.543
2.125% Due:11/30/2023
2,500,000.00
Berkshire Hathaway Callable Note Cont 1/15/2023
99.720
2.75% Due: 03/15/2023
500,000.00
US Treasury Note
96.043
0.125% Due:12/15/2023
965,000.00
Merck & Co Note
99.604
2.8% Due: 05/18/2023
1,035,000.00
Merck & Co Note
99.576
2.8% Due: 05/18/2023
2.87%
5,003,000.00
17,604.17
5,020,604.17
-12,571.40
2.76%
4,980,664.06
44,398.91
5,025,062.97
-11,991.98
2.67%
987,421.88
3,152.32
990,574.20
-4,760.44
2.52%
4,927,148.44
20,611.34
4,947,759.78
-47,940.92
3.28%
2,493,000.00
27,881.94
2,520,881.94
141.55
0.17%
480,214.84
97.34
480,312.18
-19,483.26
3.41%
961,178.60
6,755.00
967,933.60
251.61
3.41%
1,030,611.60
7,325.50
1,037,937.10
-35.94
56 Q11
Table of Contents
Transaction Ledger As of September 30, 2022
Orange County Sanitation District Long Term - Account #10268
June 30, 2022 through September 30, 2022
Sale
08/24/2022
91282CBA8
1,000,000.00
US Treasury Note
95.984
0.17%
959,843.75
239.07
960,082.82
-39,568.43
0.125% Due:12/15/2023
Sale
08/25/2022
46625HRL6
2,585,000.00
JP Morgan Chase Callable Note Cont 3/18/2023
99.604
3.36%
2,574,763.40
18,805.88
2,593,569.28
5,095.36
2.7% Due: 05/18/2023
Sale
08/26/2022
912828U57
2,500,000.00
US Treasury Note
98.508
2.52%
2,462,695.31
12,628.07
2,475,323.38
-25,267.15
2.125% Due:11/30/2023
Sale
08/26/2022
91282CBA8
2,500,000.00
US Treasury Note
95.918
0.17%
2,397,949.22
614.75
2,398,563.97
-100,587.38
0.125% Due:12/15/2023
Sale
08/31/2022
46625HRL6
1,295,000.00
JP Morgan Chase Callable Note Cont 3/18/2023
99.480
3.36%
1,288,266.00
10,003.88
1,298,269.88
773.55
2.7% Due: 05/18/2023
Sale
08/31/2022
46625HRL6
1,120,000.00
JP Morgan Chase Callable Note Cont 3/18/2023
99.445
3.36%
1,113,784.00
8,652.00
1,122,436.00
277.02
2.7% Due: 05/18/2023
Sale
08/31/2022
912828U57
3,500,000.00
US Treasury Note
98.379
2.52%
3,443,261.72
18,695.36
3,461,957.08
-40,068.51
2.125% Due:11/30/2023
Sale
09/09/2022
931142EK5
3,880,000.00
Wal-Mart Stores Callable Note Cont 5/26/2023
99.845
3.41%
3,873,986.00
26,750.44
3,900,736.44
-5,853.73
3.4% Due: 06/26/2023
Sale
09/13/2022
808513AT2
2,750,000.00
Charles Schwab Corp Callable Note Cont
99.685
2.74%
2,741,337.50
9,716.67
2,751,054.17
-7,828.37
12/25/2022
2.65% Due: 01/25/2023
Sale
09/28/2022
91282CBA8
1,000,000.00
US Treasury Note
95.051
0.17%
950,507.81
358.61
950,866.42
-48,947.41
0.125% Due:12/15/2023
Sale
09/28/2022
91282CDR9
2,500,000.00
US Treasury Note
95.613
0.75%
2,390,332.03
4,585.60
2,394,917.63
-109,729.38
0.75% Due: 12/31/2023
Subtotal
45,630,000.00
45,059,966.16
238,876.85
45,298,843.01-468,095.21
Maturity
09/14/2022
4581XOCZ9
4,500,000.00
Inter -American Dev Bank Note
100.000
4,500,000.00
0.00
4,500,000.00
0.00
1.75% Due: 09/14/2022
Subtotal
4,500,000.00
4,500,000.00
0.00
4,500,000.00
0.00
57 c>t'u
Table of Contents
Transaction Ledger
Orange County Sanitation District Long Term - Account #10268
June 30, 2022 through September 30, 2022
Transaction Settlement CLISIP Quantity Security Description Price Acq/Disp A
Type Date Yield
Security 09/30/2022 912828WUO 728.00 US Treasury Inflation Index Note 99.904 0.13%
Withdrawal 0.125% Due: 07/15/2024
As of September 30, 2022
728.00 0.19 728.19 1.11
Subtotal 728.00 728.00 0.19 728.19 1.11
TOTAL DISPOSITIONS 50,130,728.00 49,560,694.16 238,877.04 49,799,571.20-468,094.10
58 Cift
Table of Contents
I Transaction Ledger
June 30, 2022 through September 30, 2022
ACQUISITIONS
Purchase
07/29/2022
912796YR4
Purchase
08/24/2022
61744YAN8
Purchase
08/25/2022
61744YAN8
Purchase
09/29/2022
313385S80
Purchase
09/29/2022
3137EAES4
Orange County Sanitation District Liquid - Account #10282
10,000,000.00
US Treasury Bill
2.555% Due:11/22/2022
1,110,000.00
Morgan Stanley Note
3.125% Due:01/23/2023
888,000.00
Morgan Stanley Note
3.125% Due:01/23/2023
5,000,000.00
FHLB Discount Note
3.25% Due: 12/12/2022
1,250,000.00
FHLMC Note
0.25% Due:06/26/2023
As of September 30, 2022
99.177
2.61%
9,917,672.22
0.00
9,917,672.22
0.00
99.919
3.31%
1,109,100.90
2,986.98
1,112,087.88
0.00
100.006
3.10%
888,053.28
2,466.67
890,519.95
0.00
99.332
3.32%
4,966,597.22
0.00
4,966,597.22
0.00
97.131
4.22%
1,214,137.50
807.29
1,214,944.79
0.00
Subtotal 18,248,000.00 18,095,561.12 6,260.94 18,101,822.06 0.00
TOTAL ACQUISITIONS 18,248,000.00 18,095,561.12 6,260.94 18,101,822.06 0.00
DISPOSITIONS
Maturity
07/18/2022
21684XUU8
Maturity
07/19/2022
912796X20
Maturity
07/28/2022
912796S59
Maturity
07/31/2022
91282CAC5
Maturity
08/26/2022
313385D45
Maturity
09/23/2022
06417MRR8
3,000,000.00
Cooperative Rabobank UA Yankee CD
100.000
3,000,000.00
5,307.50
3,005,307.50
0.00
0.33% Due: 07/18/2022
2,500,000.00
US Treasury Bill
100.000
2,500,000.00
0.00
2,500,000.00
0.00
0.651% Due: 07/19/2022
10,000,000.00
US Treasury Bill
100.000
10,000,000.00
0.00
10,000,000.00
0.00
0.671% Due:07/28/2022
42,000,000.00
US Treasury Note
100.000
42,000,000.00
0.00
42,000,000.00
0.00
0.125% Due:07/31/2022
5,000,000.00
FHLB Discount Note
100.000
5,000,000.00
0.00
5,000,000.00
0.00
1.17% Due:08/26/2022
4,000,000.00
Bank of Nova Scotia Houston Yankee CD
100.000
4,000,000.00
8,022.22
4,008,022.22
0.00
0.2% Due: 09/23/2022
59 cif
Table of Contents
Transaction Ledger
As of September 30, 2022
Orange County Sanitation District Liquid - Account #10282
June 30, 2022 through September 30, 2022
Transaction Settlement CLISIP Quantity Security Description Price Accl/Disp Amount Interest Total Amount Gain/Loss
Type Date Yield Pur/Sold
Maturity 09/29/2022 912796U64 28,000,000.00 US Treasury Bill 100.000 28,000,000.00 0.00 28,000,000.00 0.00
1.107% Due: 09/29/2022
Subtotal 94,500,000.00 94,500,000.00 13,329.72 94,513,329.72 0.00
TOTAL DISPOSITIONS 94,500,000.00 94,500,000.00 13,329.72 94,513,329.72 0.00
60 c�'u
Table of Contents
IImportant Disclosures As of September 3O,2022
2022 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc ("IDS"), an independent pricing source. In the event IDS does not provide a price or if the price provided is not
reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation
procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross -of -advisory fees and represent the client's Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of
dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy
will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies,
contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the
deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and
all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included
in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the
index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their
respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be
reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to
change. This report may contain forecasts and forward -looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of
future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a
substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the
borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in
general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody's, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage -backed securities ("MBS") reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and
timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody's and Fitch respectively.
61 cJ"
Table of Contents
Benchmark Disclosures As of September 30, 2022
ICE BofA 3-Month US Treasury Bill Index
The ICE BofA US 3-Month Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a
newly selected issue. The issue selected at each month -end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date.
ICE BofA 1-5 Yr AAA -A US Corp & Govt Index
The ICE BofA 1-5 Year AAA -A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury,
US agency, foreign government, supranational, and corporate securities. Qualifying securities must be rated AAA through A3 (based on an average of Moody's, S&P and Fitch). In addition, qualifying
securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon
schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities.
ICE BofA 1-5 Yr US Corp & Govt Index
The ICE BofA 1-5 Year US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US
agency, foreign government, supranational, and corporate securities. Qualifying securities must have an investment grade rating (based on an average of Moody's, S&P and Fitch). In addition, qualifying
securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon
schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities.
62 Q1
Table of Contents
Rating Agency Comparisons
A summary of investment grade ratings are listed below. More complete descriptions of
Moody's and Standard & Poor's ratings are included in the following pages.
Quality/Grade
Moody's
Standard & Poor's
Fitch
Best Quality
Aaa
AAA
AAA
High Quality
Aal
AA+
AA+
Aa2
AA
AA
Aa3
AA-
AA -
Upper Medium Grade
Al
A+
A+
A2
A
A
A3
A-
A -
Medium Grade
Baal
BBB+
BBB+
Baa2
BBB
BBB
Baa3
BBB-
BBB1
Moody's - Investment Grade
"Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest
degree of investment risk. Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various protective elements
are likely to change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
"Aa" - Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be of greater
amplitude or there may be other elements present which make the long-term risks appear
somewhat larger than in Aaa securities.
"A" - Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to principal and
interest are considered adequate, but elements may be present which suggest a
susceptibility to impairment sometime in the future.
Table of Contents
"Baa" - Bonds which are rated Baa are considered as medium grade obligations; i.e.,
they are neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such bonds lack
outstanding investment characteristics and in fact have speculative characteristics as
well.
Bonds in the Aa, A, and Baa are also assigned "1 ", "2", or "3" based on the strength of
the issue within each category. Accordingly, "Al" would be the strongest group of A
securities and "AY would be the weakest A securities.
Ba, B, Caa, Ca, and C - Bonds that possess one of these ratings provide questionable
protection of interest and principal ("Ba" indicates some speculative elements; "B"
indicates a general lack of characteristics of desirable investment; "Caa" represents a
poor standing; "Ca" represents obligations which are speculative in a high degree; and
"C" represents the lowest rated class of bonds). "Caa", "Ca" and "C" bonds may be in
default.
Standard and Poor's -Investment Grade
AAA - Debt rated "AAA" has the highest rating assigned by S&P. Capacity to pay interest
and repay principal Is extremely strong.
AA - Debt rated "AX has a very strong capacity to pay interest and repay principal and
differs from the highest rated issues only in small degree.
A - Debt rated "A" has a strong capacity to pay interest and repay principal although it is
somewhat more susceptible to the adverse effects of changes in circumstances and
economic conditions than debt in higher rated categories.
BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and
repay principal. Whereas it normally exhibits adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in higher rated
categories.
Standard and Poor's - Speculative Grade Ratinq
Debt rated "BB", "B", "CCC", "CC" and "C" is regarded as having predominantly
speculative characteristics with respect to capacity to pay interest and repay principal.
"BB" indicates the least degree of speculation and "C" the highest. While such debt will
likely have some quality and protective characteristics these are outweighed by major
uncertainties or major exposures to adverse conditions.
BB - Debt rated "BB" has less near -term vulnerability to default than other speculative
issues. However, it faces major ongoing uncertainties or exposure to adverse business,
financial, or economic conditions which could lead to inadequate capacity to meet timely
interest and principal payments. The "BB" rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied "BBB" rating.
Table of Contents
B - Debt rated "B" has a greater vulnerability to default but currently has the capacity to
meet interest payments and principal repayments. Adverse business, financial, or
economic conditions will likely impair capacity or willingness to pay interest and repay
principal. The "B" rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied "BB" or "BB" rating.
CCC - Debt rated "CCC' has a currently identifiable vulnerability to default, and is
dependent upon favorable business, financial, and economic conditions to meet timely
payment of interest and repayment of principal. In the event of adverse business,
financial, or economic conditions, it is not likely to have the capacity to pay interest and
repay principal. The "CCC" rating category is also used for debt subordinated to senior
debt that is assigned an actual or implied "B" or "B" rating.
CC - The rating "CC" typically is applied to debt subordinated to senior debt that is
assigned an actual or implied "CCC' debt rating.
C - The rating "C" typically is applied to debt subordinated to senior debt which is assigned
an actual or implied "CCC" debt rating. The "C" rating may be used to cover a situation
where a bankruptcy petition has been filed, but debt service payments are continued.
Cl - The rating "Cl" is reserved for income bonds on which no interest is being paid.
D - Debt rated "D" is in payment default. The "D" rating category is used when interest
payments or principal payments are not made on the date due even if the applicable grace
period has not expired, unless S&P believes that such payments will be made during such
grace period. The "D" rating also will be used upon the filing of a bankruptcy petition if
debt service payments are jeopardized.
Plus (+) or Minus (-) - The ratings from "AA" to "CCC' may be modified by the addition
of a plus or minus sign to show relative standing within the major rating categories.
NR - Indicates no rating has been requested, that there is insufficient information on which
to base a rating, or that S&P does not rate a particular type of obligation as a matter of
policy.
PUBLIC PARS
AGENCY ■
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
+/
ORANGE COUNTY SANITATION DISTRICT
PARS 115 Trust -Pension Rate Stabilization Program Client Review
October 20, 2022
Table of Contents
CONTACTS
AGENCY
PARS
�
RE,ERVICESRE�MENT
S
H 1 G HMARK°
TRUSTED SOLUTIONS. LASTING RESULTS.
CAPITAL MANAGEMENT
Mitch Barker Keith Stribling, CFA
Executive Vice President Senior Portfolio Manager
(949) 310-4876 (949) 553-2591
mbarker@pars.org keith.stribling@highmarkcapital.com
Will Rogers, RPA
Client Services Coordinator
(800) 540-6369 x161
wrogers@pars.org
PURU` PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS. ORANGE COUNTY SANITATION DISTRICT 2
Table of Contents
PARS 115 TRUST TEAM
PUBLIC
AGMCY PARS ' Serves as record -keeper, consultant, •
RETIREMEM
Monitors plan compliance
5ERV1
and central point of contact
(IRS/GASB/State Government Code)
TRUSTED SOLUTIONS. LASTING
RESULTS. . Sub -trust accounting •
Processes contributions/disbursements
• Coordinates all agency services •
Hands-on, dedicated support teams
38
2,000+ 1,000+ 490+
500 K+ $6.0 B
Years of Experience
Plans under Public Agency 115 Trust Clients
Plan Participants Assets under
(1984-2022)
Administration Clients
Administration
embank.
• 5th largest commercial bank and one of the
nation's largest trustees for Section 115 trusts
• Safeguard plan assets
• Oversight protection as plan fiduciary
• Custodian of assets
159
$9.OT
Years of Experience
Assets under Trust
(1863-2022)
Custody
PUBU`
AGPARS
ENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
HIGHMARK®
CAPITAL MANAGEMENT
• Investment sub -advisor to trustee U.S. Bank
• Investment policy assistance
• Uses open architecture
• Active and passive platform options
• Customized portfolios (with minimum asset level)
103
$17.6B
Years of Experience
Assets under
(1919-2022)
Management &
Advisement
ORANGE COUNTY SANITATION DISTRICT 1 3
Table of Contents
PARS PLANS AND PROGRAMS
1 Pension Rate Stabilization Program (PRSP) - client
A pension prefunding trust designed specifically to address GASB 68
liabilities on its financial statements and stabilize future costs.
2 OPEB Trust Program - eligible
An OPEB prefunding trust designed to address OPEB liabilities and increase
investment rates of return (discount rate).
3 Alternate Retirement System (ARS)
An alternative to Social Security for part-time employees offered to provide a valuable
benefit for employees and permanent payroll savings to the Agency.
4 Supplemental Defined Contribution Plan
A locally designed retirement plan offered in addition to PERS or 37-Act retirement
system with the goal of attracting and retaining select employees to the Agency.
5 Accumulated Leave Plan
A Defined Contribution solution that reduces leave balances on an annual
basis during employment and minimizes total payout amounts.
�R"` PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 4
Table of Contents
PARS IRS -APPROVED SECTION 115 TRUST
Retiree Medical Benefits
Assets can be used to:
Subaccounts
OPEB and pension assets are
individually sub -accounted,
and can be divided by dept.,
bargaining group, or cost center.
OAnytime Access
Trust funds are available
anytime; OPEB for OPEB
and pension for pension.
PUB"PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
General Fund
prefund
either or both
Financial Stability
Assets in the PARS Section 115
Combination Trust can be used
to address unfunded liabilities.
,111 Economies -of -Scale
OPEB and pension assets
aggregate and reach lower fees
on tiered schedule sooner -
saving money!
Pension
Pension Rate Stabilization Program
Assets can be used to:
Flexible Investing
Allows separate investment
strategies for OPEB and
pension subaccounts.
No Set Up Cost or Minimums
No set-up costs, no minimum
annual contribution amounts,
and no fees until assets are added.
ORANGE COUNTY SANITATION DISTRICT 5
Table of Contents
115 TRUST — OPEB/PENSION CLIENT LIST Updated October ,o„
SPECIAL DISTRICTS (114)
Agoura Hills/Calabasas Community Center Authority
Alameda County Mosquito Abatement District
Alpine Fire Protection District
Beach Cities Health District
Bighorn -Desert View Water Agency
Bodega Bay Public Utilities District
Calaveras County Water District
California Joint Powers Insurance Authority
California Joint Powers Risk Management Authority
Central Contra Costa Sanitary District
Central Contra Costa Transit Authority
Coastline Regional Occupational Program
Coastside Fire Protection District
Colusa Mosquito Abatement District
Contra Costa County EEs' Retirement Association
Contra Costa Mosquito and Vector Control District
Crestline Village Water District
Delta Diablo
Desert Recreation District
East Bay Regional Park District
East Contra Costa Fire Protection District
East Orange County Water District
Eastern Sierra Community Services District
Eastern Sierra Transit Authority
El Dorado Hills County Water (& Fire) District
Fallbrook Public Utility District
Fresno Irrigation District
Fresno Metropolitan Flood Control District
Glenn-Colusa Irrigation District
Goleta Cemetery District
Goleta West Sanitary District
Great Basin Unified Air Pollution Control District
Greater Vallejo Recreation District
Hayward Area Recreation & Park District
Hesperia Fire Protection District
Housing Authority of the County of Butte
Housing Authority of the County of Contra Costa
Housing Authority of the County of San Bernardino
Housing Authority of the County of Santa Cruz
Humboldt Bay Fire Joint Powers Authority
- PARS
NEfIREMFM
SMVIM
Humboldt Bay Municipal Water District
Humboldt No. 1 Fire Protection District
Menlo Park Fire Protection District
Mesa Water District
Metropolitan Transportation Commission
Midpeninsula Regional Open Space District
Mid -Peninsula Water District
Mojave Desert Air Quality Management District
Montecito Fire Protection District
Monterey Bay Unified Air Pollution Control District
Monterey County Mosquito Abatement District
Moraga-Orinda Fire Protection District
Mosquito & Vector Mgmt Dist. of Santa Barbara Co.
Municipal Pooling Authority
Municipal Water District of Orange County
Napa County Mosquito Abatement District
Nevada County Consolidated Fire District
North Central Fire Protection District
North County Fire Protection District
Novato Sanitary District
Orange County Fire Authority
Orange County LAFCO
Orange County Mosquito and Vector Control District
Orange County Sanitation District
Orange County Water District
Orchard Dale Water District
Public Agency Risk Sharing Authority of CA (PARSAC)
Pebble Beach Community Services District
Placentia Library District
Placer County Air Pollution Control District
Placer County Resource Conservation District
Rancho Cucamonga Fire Protection District
Rancho Murieta Community Services District
Redwood Empire Municipal Insurance Fund (REMIF)
Regional Housing Authority
Rowland Water District
Sacramento Area Flood Control Agency
San Andreas Sanitary District
San Elijo Joint Powers Authority
San Mateo County Mosquito & Vector Control District
Santa Barbara County Law Library
Santa Cruz Regional 9-1-1 JPA
Santa Fe Irrigation District
Sewer Authority Mid-Coastside
Shasta Valley Cemetery District
South Coast Water District
South Montebello Irrigation District
South Orange County Wastewater Authority
South Placer Fire Protection District
Southern Marin Fire Protection District
State Water Contractors
Superior Court of CA, County of Imperial
Superior Court of CA, County of Inyo
Superior Court of CA, County of Kern
Superior Court of CA, County of Marin
Superior Court of CA, County of Merced
Superior Court of CA, County of Orange
Superior Court of CA, County of San Mateo
Superior Court of CA, County of Shasta
Superior Court of CA, County of Siskiyou
Superior Court of CA, County of Sonoma
Sweetwater Springs Water District
Three Valleys Municipal Water District
Twentynine Palms Water District
Union Sanitary District
Ventura Regional Sanitation District
Walnut Valley Water District
West Bay Sanitary District
West County Wastewater District
Western Riverside Council of Governments
Yolo-Solano Air Quality Management District
Yorba Linda Water District
beU�ai MR DISTRICTS (3)
Shasta County Office of Education
Sonoma County Office of Education
Intelecom
TRUSTED SOLUTIONS. LASTINO RESULTS. ORANGE COUNTY SANITATION DISTRICT
Table of Contents
115 TRUST
- OPEB/PENSION
CLIENT LIST
Updated October2022
CITIES & TOWNS (1S4)
COUNTIES (3S)
Alameda
El Centro
Los Altos Hills
Rolling Hills
Alpine
Alhambra
El Segundo
Mammoth Lakes
Rosemead
Amador
Anaheim
Elk Grove
Manhattan Beach
Ross
Calaveras
Angels Camp
Emeryville
Merced
San Anselmo
Colusa
Atherton
Escondido
Modesto
San Jacinto
Contra Costa
Atwater
Fairfax
Monrovia
San Leandro
Humboldt
Bakersfield
Fairfield
Morgan Hill
San Ramon
Imperial
Beaumont
Fort Bragg
Morro Bay
Santa Ana
Inyo
Bell Gardens
Fountain Valley
Napa
Santa Clara
Kern
Benicia
Fullerton
National City
Santa Clarita
Kings
Beverly Hills
Galt
Norco
Sausalito
Lake
Bishop
Garden Grove
Norwalk
Selma
Lassen
Brea
Gilroy
Novato
Solana Beach
Madera
Brisbane
Glendale
Oakley
South El Monte
Mariposa
Burlingame
Glendora
Orinda
Stanton
Mendocino
Calabasas
Goleta
Oroville
Stockton
Merced
Camarillo
Grand Terrace
Pacifica
Taft
Mono
Capitola
Grass Valley
Palmdale
Temecula
Monterey
Carmel
Half Moon Bay
Palo Alto
Temple City
Napa
Chino Hills
Hawthorne
Pasadena
Thousand Oaks
Nevada
Chula Vista
Healdsburg
Patterson
Tiburon
Placer
Claremont
Hemet
Perris
Tustin
Plumas
Colma
Hercules
Pico Rivera
Twentynine Palms
Riverside
Commerce
Hermosa Beach
Piedmont
Union City
San Benito
Corcoran
Huntington Beach
Pinole
Upland
Sanjoaquin
Coronado
Indian Wells
Pittsburg
Vallejo
Shasta
Costa Mesa
Indio
Placentia
Villa Park
Siskiyou
Covina
lone
Pleasant Hill
Walnut
Solano
Crescent City
La Habra
Pleasanton
West Covina
Sonoma
Cudahy
Lakeport
Port Hueneme
West Sacramento
Sutter
Cupertino
La Mesa
Rancho Cucamonga
Westminster
Tehama
Cypress
La Quinta
Redding
Winters
Trinity
Daly City
Laguna Niguel
Redwood City
Woodland
Tulare
Dana Point
Lake Forest
Rialto
Woodside
Yolo
Del Rey Oaks
Lakewood
Richmond
Yountville
Yuba
Dinuba
Lemon Grove
Rio Vista
Yuba City
Duarte
Livermore
Ripon
Yucca Valley
Dublin
Lodi
Riverside
P,aL,c
Los Alamitos
Rohnert Park
AGENCY
IIEn Emuff
OARS
SERVI�S
ORANGE COUNTY SANITATION DISTRICT
TRUSTED SOLUTIONS. LASTiNGRESULTS.
Table of Contents
115 TRUST - OPEB/PENSION CLIENT LIST
SCHOOL DISTRICTS (S7)
Alisal Union School District
Alta Loma School District
Auburn Union School District
Bass Lake Joint Union Elementary School District
Bellflower Unified School District
Beverly Hills Unified School District
Brea Olinda Unified School District
Calistoga Joint Unified School District
Campbell Union High School District
Compton Unified School District
Corning Union Elementary School District
Coronado Unified School District
Cotati-Rohnert Park Unified School District
El Dorado Union High School District
El Monte Union High School District
Folsom Cordova Unified School District
Fontana Unified School District
Fowler Unified School District
Hermosa Beach City School District
Hesperia Unified School District
Hughes -Elizabeth Lakes Union E. School District
John Swett Unified School District
Lakeside Union School District (San Diego)
Le Grand Union HSD
Lemon Grove School District
Lindsay Unified School District
Madera Unified School District
Manteca Unified School District
Moreno Valley Unified School District
Napa Valley Unified School District
Natomas Unified School District
Newport -Mesa Unified School District
- PARS
NEfIREMFM
SMVIM
Ocean View School District (Ventura)
Ontario -Montclair School District
Orcutt Union School District
Palmdale School District
Palos Verdes Peninsula Unified School District
Placer Union High School District
Porterville Unified School District
Poway Unified School District
Red Bluff Joint Union High School District
Red Bluff Union Elementary School District
River Delta Unified School District
Riverdale Joint Unified School District
Roseville Joint Union High School District
Updated October 2022
San Bruno Park School District
San Dieguito Union High School District
San Marino Unified School District
Santa Barbara Unified School District
Santa Rita Union School District
Taft Union HSD
Trona Joint Unified School District
Upland USD
Visalia Unified School District
Westside Union School District
Whittier City School District
Wilsona School District
COMMUNITY COLLEGE DISTRICTS (19)
Allan Hancock CCD
Citrus CCD
Coast CCD
Grossmont-Cuyamaca CCD
Hartnell CCD
Imperial CCD
Marin CCD
Palo Verde CCD
Pasadena Area CCD
Rancho Santiago CCD
Rio Hondo CCD
San Bernardino CCD
San Luis Obispo County CCD (Cuesta)
Shasta-Trinity-Tehama Joint CCD
State Center CCD
Victor Valley CCD
West Valley -Mission CCD
Yosemite CCD
Yuba CCD
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 8
Table of Contents
SUMMARY OF AGENCY'S PENSION PLAN
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust
Trustee Approach: Discretionary
Plan Effective Date: November 17, 2021
Plan Administrator: General Manager
Current "OC SAN Al" Investment Strategy: Moderate HighMark PLUS (Active) Strategy; Individual Account
Current "OC SAN 1131" Investment Strategy: Balanced HighMark PLUS (Active) Strategy; Individual Account
AS OF SEPTEMBER 30, 2022:
OC SAN Al OC SAN B1 TOTAL
Initial Contribution: January 2022: $10,000,000 January 2022: $5,000,000 January 2022: $15,000,000
Additional Contributions:
$0
$0
$0
Total Contributions:
$10,000,000
$5,000,000
$15,000,000
Disbursements:
$0
$0
$0
Total Investment Earnings:
($1,629,803)
($858,159)
($2,487,962)
Account Balance:
$8,341,697
$4,127,683
$12,469,379
PUB"PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
ORANGE COUNTY SANITATION DISTRICT 9
Table of Contents
SUMMARY
OF AGENCY'S TOTAL PENSION PLAN
HISTORY OF CONTRIBUTIONS. DISBURSEMENTS. AND TOTAL ASSETS AS OF SEPTEMBER 30. 2022:
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Plan Month Ending
.EN� IIEnKEMEfYr
SERVICES PARS
TRUSTED SOLUTIONS. LASTING RESULTS.
Jan-22
$15,000,000
$0
$14,910,223
Feb-22
$0
$0
$14,649,008
Mar-22
$0
$0
$14,623,146
Apr-22
$0
$0
$13,784,198
May-22
$0
$0
$13,810,584
Jun-22
$0
$0
$13,070,591
Jul-22
$0
$0
$13,715,516
Aug-22
$0
$0
$13,339,975
Sep-22
$0
$0
$12,469,379
ORANGE COUNTY SANITATION DISTRICT 10
Table of Contents
►4
�5
PENSION FUNDING STATUS
As of June 30, 2021, Orange County Sanitation District's ARBA pension plan is funded as *:
Total Pension Liability
Fiduciary Net Position (Asset)
Net Pension Liability
Funded Ratio
Service Cost
Discount Rate
2020 AC F R
Valuation Date:
July 1, 2019
$21,434,655
$0
$21,434,655
0.00%
$576,661
(FY 19-20)
3.13%
2021 AC F R
Valuation Date:
June 30, 2020
$23,320,422
$0
$23,320,422
0.00%
$730,496
(FY 20-21)
2.45%
PUBLIC PARS Data from Agency's Annual Comprehensive Financial Report for FVE 2020 and 2021.
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 11
Table of Contents
►4
�5
PENSION FUNDING STATUS
As of June 30, 2021, Orange County Sanitation District's OCERS pension plan is funded as *:
2020 AC F R 2021 AC F R
Valuation Date: Valuation Date:
July 1, 2019 June 30, 2020
Approximate Total Pension Liability $46.4 M $63.2 M
Proportionate Share for OCERS (0.97%) (1.63%)
Fiduciary Net Position (Asset) $49.4 M $68.6 M
Proportionate Share of Net Pension Liability ($3.1 M) ($5.4 M)
Funded Ratio 106.64% 108.5%
Employer Contribution Amount $8.7 M $8.5 M
(FY 19-20) (FY 20-21)
Discount Rate 7.00% 7.00%
PUBLIC PARS Data from Agency's Annual Comprehensive Financial Report for FVE 2020 and 2021.
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 12
Table of Contents
PARS: OC Sanitation District
October 20, 2022
Presented by
Keith Stribling, CFA
JHIGHMARKS
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 1 13
Table of Contents
DISCUSSION HIGHLIGHTS - OC Sanitation District
Investment objective - OC Sanitation District Al
Asset Allocation: PARS/Moderate Index PLUS (As of 9-30-2022)
Allocation Target — 46.21 % stocks (40-60% range), 48.33% bonds (40-60% range), 5.46% cash (0-20% range)
Large cap 25.56%, Mid -cap 4.54%, Small cap 7.04%, International 7.26%, REIT 1.81 %
Performance: OC Sanitation District Al
(as of 9-30-2022) gross of investment management fees, net of fund fees
• 3-month: -4.40%
• 6-months:-14.14%
• Inception to date (1-1-22):-16.30%
Investment objective- OC Sanitation District A2
Asset Allocation: PARS/Balanced (As of 9-30-2022)
• Allocation Target — 55.53% stocks (50-70% range), 38.33% bonds (30-50% range), 6.14% cash (0-20% range)
• Large cap 30.97%, Mid -cap 5.54%, Small cap 8.37%, International 8.60%; REIT 2.04%
Performance: OC Sanitation District A2
(as of 9-30-2022) gross of investment management fees, net of fund fees
• 3-month: -4.53%
• 6-months:-15.29%
• Inception to date (1-1-22):-17.18%
Asset Allocation:
• Recently lowered equities
• Favoring value style over growth
• Recently lowered high yield
JHIGHMARK@
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 1 14
Table of Contents
DISCUSSION HIGHLIGHTS - OC Sanitation District
Economic Review
■ Aggressive fiscal policy... stoking inflation
■ Monetary policy changing... pullback on QE
■ Rate hikes to curb inflation expectations
■ Vaccines & now antiviral pills... even as covid surges possible light at the end of the covid tunnel?
■ Eventually global economies will improve... but Beijing lockdowns and the Moscow war hampering global recovery
■ Recession risks rising as yield curve steepens and inverts
■ Risks: Inflation... Inflation... inflation... still more covid hurdles; Fed tapering & Russian aggression with Ukraine & NATO; China
slowing
JHIGHMARKS
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 1 15
Table of Contents
PAI IOC SANITATION 115P-A1 {:.::465000} A HIGH1YlARK-
Performance Report As of. September 3D, 2022 L AP, I rk, FAQ NMF Me N I
Inception
to Date
3 Months
6 Months
0110112022
Cash Equivalents
.47
.61
.62
Lipper Money Market Funds Index
.49
.62
.63
Total Fixed Income
-3.81
-8.63
-11.95
Bloomberg US Aggregate Bd Index (USD)
-4.75
-9.22
-14.61
Total Equities
-5.43
-20.61
-22.39
Large Cap Funds
-4.84
-21.10
-22.27
S&P 500 Composite Index
-4.88
-20.2C
-23.87
Mid Cap Funds
-3.40
-19.71
-20.30
Russell Wdcap Index
-3.44
-19.71
-24.27
Small Cap Funds
-3.29
-18.55
-19.41
Russell 2000 Index (USD)
-2.19
-19.01
-25A0
International Equities
-10.57
-21.68
-26.76
MSCI EAFE Index (Net)
-9.36
-22.51
-27.09
MSCI EM Free Index (Net USD)
-11.57
-21.7C
-27.16
Real Estate - ETFs 1 Sctr Fds
-10.86
-24.44
-23.74
Wilshire REIT Index
-10.23
-26.82
-29.66
Total Managed Portfolio
-4.40
-14.14
-16.30
Returns are gross of fees not including account level advisory fees unless otherwise stated. Gross returns are presented before management and custodial fees
but after all trading expenses, embedded and reflect the reinvestment of dividends and other income.
Net returns are net of investment management fees in effect
for the respective time period. Returns for periods over one year are annualized. An investor cannot invest directly in unmanaged indices. The information
presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns Securities are not FDIC
insured have no bank guarantee and
ay lose value.
HIGHMARK®
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 16
Table of Contents
ASSET ALLOCATION- OC Sanitation District Al
JHIGHMARKS
CAPITAL MANAGEMENT
Ticker Investment Vehicle
Equity
46.21 %
Large Cap Core
COFYX
Columbia Contrarian Core Cl Y
4.73%
VGIAX
Vanguard Gro & Inc Admiral Shares
8.98%
Large Cap Value
DODGX
Dodge & Cox Stock Fund
4.38%
IVE
iShares S&P 500 Value ETF
2.00%
Large Cap Growth
HNACX
Harbor CP Appre Rtrmt Cl
2.74%
PRUFX
T. Rowe Price Growth Stock Fund
2.74%
Mid Cap Growth
IWR
iShares Rusell Mid Cap ETF
4.54%
Small Cap Value
UBVFX
Undiscovered Mgrs Behavrl R6
3.48%
Small Cap Growth
VBK
Vanguard Small Cap Gr Vipers
3.56%
International Core
DFALX
DFA Large Cap International Port
2.75%
International Value
DODFX
Dodge & Cox International Stock Fund
0.80%
International Growth
MGRDX
MFS International Growth Fund
0.81%
Emerging Markets
HHHFX
Hartford Schrodr Mkts Eq
2.90%
REIT
VNQ
Vngrd Index Tr Reit Viper Shs
1.81%
Fixed Income
48.33%
Short -Term
VFSUX
Vanguard Short -Term Corp Adm Fund
10.83%
Intermediate -Term
PTTRX
PIMCO Total Return Instl Fund
12.17%
PTRQX
Prudential Total Return BD
12.16%
DBLFX
Doubleline Core Fixed Inc Cl 1
12.14%
High Yield
PHIYX
PIMCO High Yield
1.02%
Cash
5.46%
FGZXX
First Amern Govt Oblig Fd CL Z
5.46%
TOTAL
100.00%
ORANGE COUNTY SANITATION DISTRICT 1 17
Table of Contents
PARS/0C SANITATION 115P-11111 (.... D658D1)
Performance Report
As of: September 3D, 2022
HIGHMARK-
CAPI Ia4 MANAGEMENT
3 Months
6 Months
Cash Equivalents
.47
.61
Lipper Money Market Funds Index
.49
.62
Total Fixed Income
-3.87
-8.77
Bloomberg US Aggregate Bd Index (USID)
-4.75
-9.22
Total Equities
-5.42
-20-60
Large Cap Funds
-4.&4
-21.09
S&P 50D Composite index
-4.88
-2121)
Mid Cap Funds
-3.44
-19.71
Russell Midcap Index
-3.44
-19.71
Small Cap Funds
-3.29
-18.54
Russell 2000 Index (L)SD)
-2.19
-19.01
International Equities
-11).59
-21.70
MSC EAFE Index (Net)
-9.36
-22.51
MSCI EM Free Index (Net USD)
-11.57
-21.70
Real Estate - ETFs J Sctr Fds
-10.85
-24.46
Wilshire RE IT Index
-1 D.23
-26.02
Total Managed Portfolio
,4.53
-15.29
Returns are gross of fees not including account level advisory
fees unless otherwise stated. Gross returns
are presented before management and custodial fees
but after all trading expenses, embedded and reflect the reinvestment of dividends and other income. Net returns are net of investment management fees in
effect for the respective time period. Returns for periods over one year are annualized. An investor cannot
invest directly in unmanaged indices. The information
presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative
of future returns Securities are not FDIC
insured have no bank guarantee and ma lose value.
HIGHMARK®
Inception
to Date
0V0112022
.62
_53
-12.11
-14.51
-2229
-2224
-23.97
-19.92
-2427
-10.13
-25.I G
26.90
27. D9
27.16
-23.53
-29.56
-17.18
CAPITAL MANAGEMENT ORANGE COUNTY SANITATION DISTRICT 1 18
Table of Contents
ASSET ALLOCATION- OC Sanitation District A2
Ticker Investment Vehicle Weight
Equity
55.53%
Large Cap Core
COFYX
Columbia Contrarian Core Cl Y
5.77%
VGIAX
Vanguard Gro & Inc Admiral Shares
10.96%
Large Cap Value
DODGX
Dodge & Cox Stock Fund
5.25%
IVE
iShares S&P 500 Value ETF
2.40%
Large Cap Growth
HNACX
Harbor CP Appre Rtrmt Cl
3.29%
PRUFX
T. Rowe Price Growth Stock Fund
3.29%
Mid Cap Growth
IWR
iShares Rusell Mid Cap ETF
5.54%
Small Cap Value
UBVFX
Undiscovered Mgrs Behavrl R6
4.14%
Small Cap Growth
VBK
Vanguard Small Cap Gr Vipers
4.23%
International Core
DFALX
DFA Large Cap International Port
3.25%
International Value
DODFX
Dodge & Cox International Stock Fund
0.92%
International Growth
MGRDX
MFS International Growth Fund
0.93%
Emerging Markets
HHHFX
Hartford Schrodr Mkts Eq
3.50%
REIT
VNQ
Vngrd Index Tr Reit Viper Shs
2.04%
Fixed Income
38.33%
Short -Term
VFSUX
Vanguard Short -Term Corp Adm Fund
7.60%
Intermediate -Term
PTTRX
PIMCO Total Return Instl Fund
9.96%
PTRQX
Prudential Total Return BD
9.95%
DBLFX
Doubleline Core Fixed Inc Cl 1
9.94%
High Yield
PHIYX
PIMCO High Yield
0.89%
Cash
6.14%
FGZXX
First Amern Govt Oblig Fd CL Z
6.14%
TOTAL
100.00%
JHIGHMARKS
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 1 19
Table of Contents
For Period Ending September 30, 2022
1-Month 3-Month Year -to- 1-Year 3-Year 5-Year 10-Year
Fund Name Return Return Date Return Return Return Return
Columbia Contrarian Core Inst3
-9.50
-5.67
-23.36
-16.97
8.44
8.36
11.61
Dodge & Cox Stock 1
-9.52
-7.19
-17.89
-13.09
8.46
7.29
11.39
Harbor Capital Appreciation Retirement
-9.15
-1.80
-36.75
-33.57
8.36
9.90
12.86
iShares S&P 500 Value ETF
-8.48
-5.86
-16.69
-9.80
4.93
6.00
9.45
Vanguard Growth & Income Adm
-8.98
-4.48
-22.69
-13.85
8.64
9.26
11.80
T. Rowe Price Growth Stock 1
-9.49
-3.29
-38.69
-35.76
3.60
6.83
11.48
S&P 500 TR USD
-9.21
-4.88
-23.87
-15.47
8.16
9.24
11.70
iShares Russell Mid -Cap ETF
-9.28
■ CAP
-3.47
EQUITY FUNDS
-24.35
-19.51
5.03
6.33
10.13
Russell Mid Cap TR USD
-9.27
-3.44
-24.27
-19.39
5.19
6.48
10.30
Undiscovered Managers Behavioral Val R6 -9.95 -5.61 -13.07 -6.72 9.14 5.99 10.79
Vanguard Small -Cap Growth ETF -8.99 -0.79 -30.50 -30.09 2.82 5.65 9.15
Russell 2000 TR USD -9.58 -2.19 -25.10 -23.50 4.29 3.55 8.55
Dodge & Cox International Stock 1
-9.05
-10.69
-19.64
-17.71
0.25
-1.48
4.17
DFA Large Cap International 1
-9.44
-10.05
-25.80
-23.33
-0.75
-0.26
3.83
MFS International Growth R6
-7.89
-7.73
-25.61
-21.94
0.99
3.04
5.56
MSCI EAFE NR USD
-9.35
-9.36
-27.09
-25.13
-1.83
-0.84
3.67
Hartford Schroders Emerging Mkts Eq F
-10.82
-12.16
-29.54
-31.60
-2.63
-1.70
1.53
MSCI EM NR USD
-11.72
-11.57
REAL ESTATE
-27.16
FUNDS
-28.11
-2.07
-1.81
1.05
1-Month
3-Month
Year -to-
1-Year
3-Year
5-Year
10-Year
Fund Name
Return
Return
Date
Return
Return
Return
Return
Vanguard Real Estate ETF
-12.83
-10.98
-29.25
-18.71
-1.62
3.07
6.23
DoubleLine Core Fixed Income 1
-4.13
-4.08
-13.77
-13.96
-3.08
-0.31
1.36
PIMCO Total Return Instl
-4.31
-4.82
-15.59
-15.65
-3.14
-0.30
1.05
Vanguard Short -Term Investment -Grade Adm
-2.01
-1.87
-7.35
-7.98
-0.74
0.75
1.34
PGIM Total Return Bond R6
-4.82
-4.57
-16.77
-16.51
-3.72
-0.14
1.74
Bloomberg US Agg Bond TR USD
-4.32
-4.75
-14.61
-14.60
-3.26
-0.27
0.89
PIMCO High Yield Instl
-3.77
-0.50
-14.37
-13.79
-1.28
1.05
3.45
ICE BofA US High Yield Mstr II Index
-4.02
-0.68
-14.62
-14.06
-0.67
1.41
3.90
Source: SEl Investments, Morningstar Investments
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources
believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
_� HIGHMARKS
CAPITAL MANAGEMENT
ORANGE COUNTY SANITATION DISTRICT 1 20
—�o
ADMINISTRATIVE REVIEW
1 1 Future contributions
2 Future disbursement requests/options
3 Investment Guidelines Document - needed
4 Client Feedback
5 Employer Portal - Opted In
PuBu` PARS
AGENCY
IIEn EMEw
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
ORANGE COUNTY SANITATION DISTRICT 21
Table of Contents
1 , O
4
O
® 4
O
O
O
EMPLOYER PORTAL
Public Agency Retirement Services (PARS) has launched its new employer portal
for the IRC Section 115 Trust. Features include:
• Latest monthly account balance 0 Downloadable prior statements
• Transaction history 0 Investment Performance
employer.pars.org
PUBLIC PARS
AGENCY
RETIREMENT
SERVICES
■
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 22
Table of Contents
GASB COMPLIANCE
• To assist our public agency clients with GASB compliance, PARS will be providing
with the following:
An individual trust statement of each agency's plan assets that shows a
reconciliation of assets held at the beginning of the fiscal year through the
end of the fiscal year, breaking out the appropriate plan contributions,
benefit payments, expenses, and investment earnings
Year-end audited financial statements of the Trust as a whole including
Schedule of Changes in Fiduciary Net Position by Employer completed by
CliftonLarsonAllen (CLA) that is intended to be compliant with GASB 67/68
requirements.
Supporting SOC 1-Type 2 report on the controls over the calculation and
allocation of additions and deductions to employer accounts within the
Trust
Investment allocation data and information on investment policies
including target asset allocations and allowable asset class allocation
ranges
RIREIC PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS. LASTiNGRESULTS. ORANGE COUNTY SANITATION DISTRICT 23
Table of Contents
JHIGHMARK 0
CAPITAL MANAGEMENT
WHY THE PARS DIVERSIFIED
CONSERVATIVE PORTFOLIO?
Comprehensive Investment Solution
HighMark® Capital Management, Inc.'s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.
Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.
Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above -average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.
This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.
Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:
HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index -based
securities, including exchange -traded funds. Both
investment options leverage HighMark's active asset
allocation approach.
Risk Management
The portfolio is constructed to control risk through
four layers of diversification - asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.
INVESTMENT OBJECTIVE I Efficient Frontier
To provide a consistent level of
Capital Appre
inflation -protected income over Balanced
the long-term. The major portion Moderate
of the assets will be fixed
� Moderately Conservative
income related. Equity securities 3
are utilized to provide inflation Conservative
protection.
Risk (Standard Deviation)
ASSET ALLOCATION - CONSERVATIVE PORTFOLIO
Strategic Range Policy Tactical
5 - 20%� 15%
Fixed Income 60 - 95% 80% 81 %
v
ciation
ANNUALIZED TOTAL RETURNS Emross of beddednvestment Fund Fees)Management Fees, but Net of
HighMark Plus Composite (Active)
Index Plus Composite (Passive)
Current Quarter* � -6.46%
Current Quarter*�-5.61%
Blended Benchmark*,**
-5.26%
Blended Benchmark*,**
-5.26%
Year To Date*--11.36%
Year To Date* --10.67%
Blended Benchmark*,**
-9.66%
Blended Benchmark*,**
-9.66%
-1 Y
-10.88%
1 Year
-9.97%
Blended Benchmark**
-8.85%
Blended Benchmark**
-8.85%
6 Year
0.60%
3 Year
0.66%
Blended Benchmark**
0.89%
Blended Benchmark**
0.89%
5 Y 2.15%
5 Year
2.02%
Blended Benchmark**
2.21 %
Blended Benchmark**
2.21 %
10 Year
10 Yea
2.76`�
Blended Benchmark**
2.83%
Blended Benchmark**
2.83%
Returns less than one year are not annualized.
**Breakdown for Blended Benchmark: From 10/1/2012 - Present: 7.5 %
S&P500,
1.5 % Russell Mid Cap, 2.5 % Russell
2000, 1 % MSCI EM (net), 2 % MSCI EAFE (net), 52.25 % Bloomberg US Agg, 25.75 % ICE
BofA 1-3 Yr US Corp/Gov't, 2 % ICE BofA US High Yield Master ll,
0.5 % Wilshire REIT, and 5 % FTSE 1 Mth US T-Bill.
From
4/112007- 9/30/2012, the blended benchmark was 12 % S&P 500;
1 % Russell 2000, 2 % MSCI EAFE (net), 40 % ICE BofA 1-3 Year
Corp./Govt, 40 % Bloomberg US Agg,
5 % FTSE 1 Mth US T-Bill. Prior
to April 2007: the blended benchmark was 15 %
S&P 500,
40 % ICE BofA 1-3Yr Corp/Gov, 40 %
Bloomberg US Agg, and 5 %
FTSE 1 Mth US T-Bill.
ANNUAL RETURNS
(Gross of Investment
Management Fees, but Net of Embedded
Fund Fees)
HighMark Plus Composite
(Active)
Index Plus Composite (Passive)
-9.04%1
2008
-6.70°V
2009
15.59%
2009
10.49%
2010
8.68%
2010
7.67%
2011
2.19%
2011
3.70%
2012
8.45%
2012
6.22%
2013
3.69%
2013
3.40%
2014
3.88%
2014
4.32%
2015
0.29%
2015
0.06%
2016
4.18%
2016
3.75%
2017
6.73%
2017
5.52%
2018
-1.35%
2018
-1.09%
2019
11.05%
2019
10.37%
2020
9.03%
2020
8.56%
2021
2.20%
2021
1.97%
PORTFOLIO FACTS
HighMark Plus (Active)
Index Plus (Passive)
Composite Inception Date
07/2004
Composite Inception Date
07/2004
No of Holdings in Portfolio
20
No of Holdings in Portfolio
13
Table of Contents
HOLDINGS
HighMark Plus (Active)
Columbia Contrarian Core 13
Vanguard Growth & Income Adm
Dodge & Cox Stock Fund
iShares S&P 500 Value ETF
Harbor Capital Appreciation - Retirement
T. Rowe Price Growth Stock - I
iShares Russell Mid -Cap ETF
Vanguard Real Estate ETF
Index Plus (Passive)
iShares Core S&P 500 ETF
iShares S&P 500 Value ETF
iShares S&P 500 Growth ETF
iShares Russell Mid -Cap ETF
Vanguard Real Estate ETF
iShares Russell 2000 Value ETF
iShares Russell 2000 Growth ETF
iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF
Vanguard Small Cap Growth ETF
Vanguard Short -Term Invest -Grade Adm
DFA Large Cap International Portfolio
iShares Core U.S. Aggregate
Dodge & Cox International Stock
Vanguard High -Yield Corp Adm
MFS International Growth - R6
First American Government Obligations Z
Hartford Schroders Emerging Markets Eq
Vanguard Short -Term Invest -Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
STYLE
Intl Stocks
2.4o
Mid Cap
1.4%
Large Cap Growth
1.6%
Large Cap Core
4.2 % _
Short -Term Bond
18.0%
High Yield
1.1%
Holdings are subject to change at the
discretion of the investment manager.
Large Cap Value
Cash 1 8 � Real Estate
4,7 / 0.5 %
\ Small Cap
2.4 %
Interm-Term Bond
61.9%
The performance records shown represent size -weighted composites of tax exempt accounts that meet the following criteria:
Accounts are managed by HighMark with full investment authority according to the PARS Conservative active and passive
objectives.
The adviser to the PARS portfolios is US Bank, and HighMark serves as sub -adviser to US Bank to manage these portfolios.
US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark
60% of the annual management fee for assets sub -advised by HighMark under its sub -advisory agreement with US Bank.
The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce
the portfolio's returns. Assuming an investment for five years, a 5% annual total return, and an annual sub -advisory fee rate
of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million
after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees). Gross returns are presented before management
and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return
will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm's
policies and procedures for calculating and reporting performance results is available upon request. Performance results are
calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes
but do reflect the deduction of trading expenses. Returns are calculated based on trade -date accounting.
Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are rebalanced
monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the
reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index
is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float -
adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and
Canada. The MSCI Emerging Markets Index is a free float -adjusted market capitalization index that is designed to measure
equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid -
cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small -cap segment of the
U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S.
dollar -denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly
traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of
the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond
performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years.
The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.
HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of
MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for -profit
and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas
Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does
not guarantee future results. Individual account management and construction will vary depending on each client's
investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any
other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate,
and MAY lose value, including possible loss of principal.
Table of Contents
J HIGHMARK°
CAPITAL MANAGEMENT
WHY THE PARS DIVERSIFIED
MODERATELY CONSERVATIVE PORTFOLIO?
Comprehensive Investment Solution
HighMark® Capital Management, Inc.'s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.
Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.
Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above -average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.
This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.
Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:
HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index -based
securities, including exchange -traded funds. Both
investment options leverage HighMark's active asset
allocation approach.
Risk Management
The portfolio is constructed to control risk through
four layers of diversification - asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.
INVESTMENT OBJECTIVE
To provide current income, with
capital appreciation as a
secondary objective. The major 0
portion of the assets is K
committed to income -producing 3
securities. Market fluctuations
should be expected.
Efficient Frontier
11 �Iapitaliation
Balanced
Moderate
Moderately Conservative
Conservative
Risk (Standard Deviation)
ASSET ALLOCATION - MODERATELY CONSERVATIVE PORTFOLIO
Strategic Range
Policy
Tactical
Equity 20 - 40%
Alp%
29%
Fixed Income 50 - 80%
65%
66%
Cash 0 - 20%
ANNUALIZED TOTAL RETURNS Emross of beddednvestment Fund Fees)Management Fees, but Net of
HighMark Plus Composite (Active)
Index Plus Composite (Passive)
Current Quarter* �-8.10%J
Current Quarter:�
-7.28%
Blended Benchmark*,** -7.44%
Blended Benchmark*,**
-7.44%
Year To Date-12.84%'
Year To Date*lllll-12.25%
Blended Benchmark*,**-12.03%
Blended Benchmark*,**-12.03%
-11.85%
1 Year-10.69%
Blended Benchmark**-10.30%
Blended Benchmark**-10.30%
3 Year 1.82%
3 Yea
1.86%
Blended Benchmark** 2.07%
Blended Benchmark**
2.07%
5 Year 3.24%
5 Yea
3.14%
Blended Benchmark** 3.37%
Blended Benchmark**
3.37%
10 Year
Blended Benchmark** 4.29%
Blended Benchmark**
4.29%
*Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 15.5 % S&P500,
3 % Russell Mid Cap, 4.5% Russell 2000, 2 % MSCI EM (net), 4 % MSCI EAFE (net), 49.25% Bloomberg US Agg, 14 % ICE BofA 1-
3 Yr US Corp/Gov't, 1.75% ICE BofA US High Yield Master II, 1 %
Wilshire REIT, and 5 % FTSE 1 Mth US T-Bill. From
4/1/2007 -
9/30/2012: the blended benchmark was 25 % S&P 500; 1.5 % Russell 2000, 3.5 % MSCI EAFE (net), 25 % ICE BofA 1-3 Year
Corp ./Govt, 40 % Bloomberg US Agg, 5 % FTSE 1 Mth US T-Bill. Prior
to April 2007, the blended benchmark was 30 %
S&P 500,
25 % ICE BofA 1-3Yr Corp/Gov, 40% Bloomberg US Agg, and 5%
FTSE 1 Mth US T-Bill.
(Gross of Investment Management Fees, but Net of Embedded
ANNUAL RETURNS
Fund Fees)
HighMark Plus Composite (Active)
Index Plus Composite (Passive)
2008 e
2008
2009 18.71 %
2009
11.92%
2010 10.46%
2010
9.72%
2011 1.75%
2011
3.24%
2012 10.88%
2012
8.24%
2013 7.30%
2013
6.78%
2014 4.41 %
2014
5.40%
2015 0.32%
2015
-0.18%
2016 4.94%
2016
5.42%
2017 9.56%
2017
8.08%
2018 -2.60%
2018
-2.33%
2019 13.73%
2019
13.53%
2020 10.76%
2020
9.74%
2021 5.15%
2021
5.33%
PORTFOLIO FACTS
HighMark Plus (Active)
Index Plus (Passive)
Composite Inception Date 08/2004
Composite Inception Date
05/2005
No of Holdings in Portfolio 20
No of Holdings in Portfolio
13
Table of Contents
HOLDINGS
HighMark Plus (Active)
Index Plus (Passive)
Columbia Contrarian Core 13
iShares Core S&P 500 ETF
Vanguard Growth & Income Adm
iShares S&P 500 Value ETF
Dodge & Cox Stock Fund
iShares S&P 500 Growth ETF
iShares S&P 500 Value ETF
iShares Russell Mid -Cap ETF
Harbor Capital Appreciation - Retirement
Vanguard Real Estate ETF
T. Rowe Price Growth Stock - I
iShares Russell 2000 Value ETF
iShares Russell Mid -Cap ETF
iShares Russell 2000 Growth ETF
Vanguard Real Estate ETF
iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6
Vanguard FTSE Emerging Markets ETF
Vanguard Small Cap Growth ETF
Vanguard Short -Term Invest -Grade Adm
DFA Large Cap International Portfolio
iShares Core U.S. Aggregate
Dodge & Cox International Stock
Vanguard High -Yield Corp Adm
MFS International Growth - R6
First American Government Obligations Z
Hartford Schroders Emerging Markets Eq
Vanguard Short -Term Invest -Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
STYLE
Large Cap Value
3.8 %
Cash 5.4%
Intl Stocks 5.1%
Mid Cap 2.7%
Large Cap Growth
3.3%
Large Cap Core
8.2%
Short -Term Bond
13.5%
High Yield 1.0%
Holdings are subject to change at the
discretion of the investment manager.
Estate 1.1 %
- Small Cap 4.4 %
Interm-Term Bond
51.5%
The performance records shown represent a size -weighted composite of tax exempt accounts that meet the following
criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderately
Conservative active and passive objectives.
The adviser to the PARS portfolios is US Bank, and HighMark serves as sub -adviser to US Bank to manage these
portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank
pays HighMark 60% of the annual management fee for assets sub -advised by HighMark under its sub -advisory
agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the
management of the portfolio, will reduce the portfolio's returns. Assuming an investment for five years, a 5% annual total
return, and an annual sub -advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10
million initial value would grow to $12.53 million after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees).
Gross returns are presented before management and custodial fees but after all trading expenses and reflect the
reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it
may incur as a client. Additional information regarding the firm's policies and procedures for calculating and reporting
performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do
not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading
expenses. Returns are calculated based on trade -date accounting.
Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are
rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but
assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The
unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI
EAFE Index is a free float -adjusted market capitalization index designed to measure developed market equity
performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float -adjusted market
capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell
Midcap Index measures the performance of the mid -cap segment of the U.S. equity universe. The Russell 2000 Index
measures the performance of the small -cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II
Index tracks the performance of below investment grade U.S. dollar -denominated corporate bonds publicly issued in the
U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged
Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE
BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate &
Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S.
Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.
HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of
MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for -profit
and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG
Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past
performance does not guarantee future results. Individual account management and construction will vary depending on
each client's investment needs and objectives. Investments employing HighMark strategies are NOT insured by the
FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or
any Bank affiliate, and MAY lose value, including possible loss of principal.
Table of Contents
_ JHIGHMARK@
CAPITAL MANAGEMENT
WHY THE PARS DIVERSIFIED
MODERATE PORTFOLIO?
Comprehensive Investment Solution
HighMark® Capital Management, Inc.'s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.
Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.
Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above -average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.
This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.
Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:
HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index -based
securities, including exchange -traded funds. Both
investment options leverage HighMark's active asset
allocation approach.
Risk Management
The portfolio is constructed to control risk through
four layers of diversification - asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.
INVESTMENT OBJECTIVE
Efficient Frontier
To provide current income and
�Capitaliation
moderate capital appreciation. 1�
It is expected that dividend and 6
Balanced
Moderate
interest income will comprise a
significant portion of total return,
Moderately Conservative
although growth through capital
Conservative
appreciation is equally important.
Risk (Standard Deviation)
ASSET ALLOCATION - MODERATE PORTFOLIO
Strategic Range
Policy Tactical
Equity 40 - 60%
50% 48%
Fixed Income 40 - 60%
45% 46%
Cas� 0 - 20%
M5% i 6% i
ANNUALIZED TOTAL RETURNS Emross of beddednvestment Fund Fees)Management Fees, but Net of
HighMark Plus Composite (Active)
Index Plus Composite (Passive)
Current Quarter* _=
-10.16% I
Current Quarter
-9.45%
Blended Benchmark*,**
-9.86%
Blended Benchmark*,**
-9.86%
Year To Dat
-14.71 %
Year To Date*-14.32%
Blended Benchmark*,**
-14.34%
Blended Benchmark*,**-14.34%
1 Year
-12.97%
1 Year-11.58%
Blended Benchmark**
-11.49%
Blended Benchmark**-11.49%
3 Year
3.51%
Yea
3.48%
Blended Benchmark**
3.77%
Blended Benchmark**
3.77%
5 Year
4.77%
Yea
4.59%
Blended Benchmark**
4.92%
Blended Benchmark**
4.92%
10 Year
6.01 %1
5.85°�
Blended Benchmark**
6.19%
Blended Benchmark**
6.19%
*Returns less than one year are not annualized.
**Breakdown for Blended Benchmark: From 10/1/2012- Present: 26.5 % S&P500,
5 % Russell Mid Cap, 7.5 % Russell 2000, 3.25 % MSCI EM (net), 6 % MSCI EAFE (net), 33.50 % Bloomberg US Agg, 10
% ICE BofA
1-3 Yr US Corp/Gov't, 1.50 % ICE BofA
US High Yield Master II, 1.75
% Wilshire REIT, and 5 % FTSE 1 Mth US T-Bill.
From
4/1/2007- 9/30/2012: the blended benchmark
was 43 % S&P 500;
2 % Russell 2000, 5 % MSCI EAFE (net), 15 % ICE BofA 1-3 Year
Corp./Govt, 30 % Bloomberg US Agg, 5 % FTSE 1 Mth US T-Bill. Prior
to April 2007: the blended benchmark was 50 %
S&P 500,
15 % ICE BofA 1-3Yr Corp/Gov, 30 % Bloomberg US Agg, and 5 %
FTSE 1 Mth US T-Bill.
ANNUAL RETURNS
(Gross of Investment
Management Fees, but Net of Embedded
Fund Fees)
HighMark Plus Composite (Active)
Index Plus Composite (Passive)
2008
-22.88%1
2008
8.14%
2009
21.47%
2009
16.05%
201
12.42%
11.77%
2011
0.55%
2011
2.29%
2012 12.25%
10.91 %
2013
13.06%
2013
12.79%
2014 9==N�
4.84%
2014
5.72%
2015
0.14%
2015
-0.52%
2016
6.45%
2016
7.23%
2017
13.19%
2017
11.59%
2018
-4.03%
2018
-4.03%
2019
17.71%
2019
17.52%
2020
12.92%
2020
11.23%
2021
9.31%
2021
10.18%
PORTFOLIO FACTS
HighMark Plus (Active)
Index Plus (Passive)
Composite Inception Date
10/2004
Composite Inception Date 05/2006
No of Holdings in Portfolio
20
No of Holdings in Portfolio
13
Table of Contents
HOLDINGS
HighMark Plus (Active)
Index Plus (Passive)
Columbia Contrarian Core 13
iShares Core S&P 500 ETF
Vanguard Growth & Income Adm
iShares S&P 500 Value ETF
Dodge & Cox Stock Fund
iShares S&P 500 Growth ETF
iShares S&P 500 Value ETF
iShares Russell Mid -Cap ETF
Harbor Capital Appreciation - Retirement
Vanguard Real Estate ETF
T. Rowe Price Growth Stock - I
iShares Russell 2000 Value ETF
iShares Russell Mid -Cap ETF
iShares Russell 2000 Growth ETF
Vanguard Real Estate ETF
iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6
Vanguard FTSE Emerging Markets ETF
Vanguard Small Cap Growth ETF
Vanguard Short -Term Invest -Grade Adm
DFA Large Cap International Portfolio
iShares Core U.S. Aggregate
Dodge & Cox International Stock
Vanguard High -Yield Corp Adm
MFS International Growth - R6
First American Government Obligations Z
Hartford Schroders Emerging Markets Eq
Vanguard Short -Term Invest -Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
STYLE
Casl
6.0%
Intl Stocks
7.9 %
Mid Cap
4.5%
Large Cap Growth
5.6%
Large Cap Core
14.0%
Holdings are subject to change at the
discretion of the investment manager.
Large Cap Value Real Estate
6.4%_ —1.8%
Short -Term Bond
10.7%
Interm-Term Bond
34.8%
The performance records shown represent size -weighted composites of tax exempt accounts that meet the following
criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderate active and
passive objectives.
The adviser to the PARS portfolios is US Bank, and HighMark serves as sub -adviser to US Bank to manage these
portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays
HighMark 60% of the annual management fee for assets sub -advised by HighMark under its sub -advisory agreement with
US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio,
will reduce the portfolio's returns. Assuming an investment for five years, a 5% annual total return, and an annual sub -
advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would
grow to $12.53 million after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees). Gross returns are presented
before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other
income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional
information regarding the firm's policies and procedures for calculating and reporting performance results is available upon
request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment
advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on
trade -date accounting.
Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are
rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but
assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged
S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is
a free float -adjusted market capitalization index designed to measure developed market equity performance, excluding the
U.S. and Canada. The MSCI Emerging Markets Index is a free float -adjusted market capitalization index that is designed to
measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance
of the mid -cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small -cap
segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below
investment grade U.S. dollar -denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT
Index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond
ndex is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate &
Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining
term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-
month U.S. Treasury Bill.
HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of
MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for -profit
and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG
Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past
performance does not guarantee future results. Individual account management and construction will vary depending on
each client's investment needs and objectives. Investments employing HighMark strategies are NOT insured by the
FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any
Bank affiliate, and MAY lose value, including possible loss of principal.
Table of Contents
_ JHIGHMARK@
CAPITAL MANAGEMENT
WHY THE PARS DIVERSIFIED
BALANCED PORTFOLIO?
Comprehensive Investment Solution
HighMark® Capital Management, Inc.'s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.
Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.
Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above -average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.
This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.
Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:
HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index -based
securities, including exchange -traded funds. Both
investment options leverage HighMark's active asset
allocation approach.
Risk Management
The portfolio is constructed to control risk through
four layers of diversification - asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.
INVESTMENT OBJECTIVE
To provide growth of principal
and income. While dividend and
interest income are an important
component of the objective's
total return, it is expected that
capital appreciation will
comprise a larger portion of the
total return.
Efficient Frontier
�Capftliation
o Balanced
m Moderate
m
Moderately Conservative
3
Conservative
Risk (Standard Deviation)
ASSET ALLOCATION - BALANCED PORTFOLIO
Strategic Range Policy Tactical
Equity 50 - 70% 60%
Fixed Income 30 - 50% 35% 36%
Cash 0 - 20% �5%
(Gross of Investment ; Management Fees, but Net of
ANNUALIZED TOTAL RETURNS
Embedded Fund Fees
HighMark Plus Composite (Active)
Current Quarter*
-11.24% 1
Blended Benchmark*,**
-11.09%
Year To Date* i
-15.71 %
Blended Benchmark*,**
-15.55%
1 Year
-13.63%
Blended Benchmark**
-12.19%
3 Year 4.28%
Blended Benchmark**
4.58%
5 Ye 5.51 %
Index Plus Composite (Passive)
Current Quarter*=10.66%
Blended Benchmark*,**-11.09%
Year To Date* �15.47%
Blended Benchmark*,**-15.55%
1 Year ,M� -12.17%
Blended Benchmark**-12.19%
3 Year 4.28%
Blended Benchmark** 4.58%
5 Year 5.26%
Blended Benchmark** 5.67% Blended Benchmark** 5.67%
10 Year 6.90% 10 Year 6.68.
Blended Benchmark** 7.13% Blended Benchmark** 7.13%
Returns less than one year are not annualized. *`Breakdown for Blended Benchmark: From 10/1/2012 - Present: 32 % S&P500, 6 %
Russell Mid Cap, 9 % Russell 2000, 4 % MSCI EM (net), 7 % MSCI EAFE (net), 27 % Bloomberg US Agg, 6.75% ICE BofA 1-3 Yr US
Corp/Gov't, 1.25 % ICE BofA US High Yield Master Il, 2 % Wilshire REIT, and 5 % FTSE 1 Mth US T-Bill. From 4/1/2007 -
9/30/2012: the blended benchmark was 51 % S&P 500; 3 % Russell 2000, 6 % MSCI EAFE (net), 5 % ICE BofA 1-3 Year Corp./Govt,
30 % Bloomberg US Agg, 5 % FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 60 % S&P 500, 5 % ICE BofA
1-3Yr Corp/Gov, 30 % Bloomberg US Agg, and 5 % FTSE 1 Mth US T-Bill.
ANNUAL RETURNS (Gross of Investment Management Fees, but Net of Embedded
Fund Fees)
HighMark Plus Composite (Active) Index Plus Composite (Passive)
2008-25.72% 2008 3.22M
2009
21.36%
2010
14.11%
2011
-0.46%
2012
13.25%
2013
2014
2015
2016
2017
2018
2019
2020
2021
PORTFOLIO FACTS
HighMark Plus (Active)
Composite Inception Date
No of Holdings in Portfolio
2009 17.62%
12.76%
2011 1.60%
16.61%
2013
4.70%
2014
0.04%
2015
6.81%
2016
15.46%
2017
-4.88%
2018
19.85%
2019
13.85%
2020
11.44%
2021
Index Plus (Passive)
10/2006 Composite Inception Date
20 No of Holdings in Portfolio
11.93%
15.63%
6.08%
-0.81 %
8.26%
13.39%
-5.05%
19.59%
12.07%
12.63%
10/2007
13
Table of Contents
HOLDINGS
HighMark Plus (Active)
Columbia Contrarian Core 13
Vanguard Growth & Income Adm
Dodge & Cox Stock Fund
iShares S&P 500 Value ETF
Harbor Capital Appreciation - Retirement
T. Rowe Price Growth Stock - I
iShares Russell Mid -Cap ETF
Vanguard Real Estate ETF
Index Plus (Passive)
iShares Core S&P 500 ETF
iShares S&P 500 Value ETF
iShares S&P 500 Growth ETF
iShares Russell Mid -Cap ETF
Vanguard Real Estate ETF
iShares Russell 2000 Value ETF
iShares Russell 2000 Growth ETF
iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF
Vanguard Small Cap Growth ETF
Vanguard Short -Term Invest -Grade Adm
DFA Large Cap International Portfolio
iShares Core U.S. Aggregate
Dodge & Cox International Stock
Vanguard High -Yield Corp Adm
MFS International Growth - R6
First American Government Obligations Z
Hartford Schroders Emerging Markets Eq
Vanguard Short -Term Invest -Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
STYLE
Holdings are subject to change at the
discretion of the investment manager.
Real Estate
Large Cap Value 2 0 %
7.7% _ i
Intl Stocks
9.4 %
Mid Cap
5.5%
Large Cap Growth
6.8
Large Cap Core
17.0 %
Small Cap
8.6%
Interm-Term Bond
27.6%
High Yield
0.9%
The performance records shown represent size -weighted composites of tax exempt accounts that meet the following criteria
Accounts are managed by HighMark with full investment authority according to the PARS Balanced active and passive
objectives.
The composite name has been changed from PARS Balanced/Moderately Aggressive to PARS Balanced on 5/1/2013. The
adviser to the PARS portfolios is US Bank, and HighMark serves as sub -adviser to US Bank to manage these portfolios. US
Bank may charge clients as much as 0.60 % annual management fee based on a sliding scale. US Bank pays HighMark 60 %
of the annual management fee for assets sub -advised by HighMark under its sub -advisory agreement with US Bank. The
0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the
portfolio's returns. Assuming an investment for five years, a 5 % annual total return, and an annual sub -advisory fee rate of
0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million
after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees). Gross returns are presented before management
and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return
will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm's
policies and procedures for calculating and reporting performance results is available upon request. Performance results are
calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes
but do reflect the deduction of trading expenses. Returns are calculated based on trade -date accounting.
Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are rebalanced
monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the
reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index
is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float -
adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and
Canada. The MSCI Emerging Markets Index is a free float -adjusted market capitalization index that is designed to measure
equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid -
cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small -cap segment of the
U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S.
dollar -denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly
traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of
the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond
performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years.
The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.
HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of
MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for -profit
and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas
Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does
not guarantee future results. Individual account management and construction will vary depending on each client's
investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any
other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate,
and MAY lose value, including possible loss of principal.
Table of Contents
- JHIGHMARK@
CAPITAL MANAGEMENT
WHY THE PARS DIVERSIFIED
INVESTMENT OBJECTIVE
Efficient Frontier
CAPITAL APPRECIATION PORTFOLIO?
To provide growth of principal.
Comprehensive Investment Solution
The major portion of the assets
BalanCadpital Appreciation
HighMark® Capital Management, Inc.'s (HighMark)
are invested in equity securities y
Moderate
diversified investment portfolios are designed to
and market fluctuations are
Moderately Conservative
balance return expectations with risk tolerance.
a
expected. 3
Key features include: sophisticated asset allocation
of Conservative
and optimization techniques, four layers of
diversification (asset class, style, manager, and
Risk (Standard Deviation)
security), access to rigorously screened, top tier
ASSET ALLOCATION — CAPITAL APPRECIATION PORTFOLIO
money managers, flexible investment options, and
experienced investment management.
Strategic Range Policy
Tactical
Equity 65 - 85% _____%
72%
Rigorous Manager Due Diligence
Fixed Income 10 - 30% 20%
20%
Our manager review committee utilizes a rigorous
8%
screening process that searches for investment
managers and styles that have not only produced
(Gross of Investment Management Fees, but Net of
ANNUALIZED TOTAL RETURNS Embedded Fund Fees)
above -average returns within acceptable risk
parameters, but have the resources and commitment
Consolidated Composite
Current Quarter*�12.59%
to continue to deliver these results. We have set high
standards for our investment managers and funds.
Blended Benchmark*,**
-12.84%
This is a highly specialized, time consuming
Year To Date* —
-17.12%
approach dedicated to one goal: competitive and
Blended Benchmark*,**
-17.27%
consistent performance.
1 Year =
-14.04%
Blended Benchmark**
-13.26%
Flexible Investment Options
3 Year 5.30%
In order to meet the unique needs of our clients,
Blended Benchmark**
5.59%
we offer access to flexible implementation strategies:
5 Year
6.42%
HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index -based
Blended Benchmark**
6.60%
securities, including exchange -traded funds. Both
10 Yeariiiiii
8.03%
investment options leverage HighMark's active asset
Blended Benchmark**
8.36%
allocation approach.
annualized. Blended
one525%
R0.5%Russeleturns less ll
MIUS Cap,
16%Bl Bloomberg USA g,3% ICE BofA 153 Yell
2000,an
MSCII EM(net), 11025%MSCI EAFE
Corp/Gov't, 1 % ICE BofA US High Yield Master II, 2 % Wilshire REIT, and 5 %
FTSE 1 Mth US T-Bill.
Risk Management
ANNUAL RETURNS (Gross of Investment Management Fees, but Net of Embedded
The portfolio is constructed to control risk through
Fund Fees)
four layers of diversification — asset classes (cash,
Consolidated Composite
fixed income, equity), investment styles (large cap,
2008
N/4
small cap, international, value, growth), managers
2009
23.77%
and securities. Disciplined mutual fund selection and
2010
12.95%
monitoring process helps to drive return potential
2011
-1.35%
while reducing portfolio risk.
2012
13.87%
2013
20.33%
2014
6.05%
2015
-0.26%
2016
8.79%
2017
16.72%
2018
-5.82%
2019
22.62%
2020
14.50%
2021
14.96%
PORTFOLIO FACTS
Consolidated Composite
Composite Inception Date
01/2009
No of Holdings in Portfolio
20
Table of Contents
HOLDINGS
HighMark Plus (Active)
Index Plus (Passive)
Columbia Contrarian Core 13
iShares Core S&P 500 ETF
Vanguard Growth & Income Adm
iShares S&P 500 Value ETF
Dodge & Cox Stock Fund
iShares S&P 500 Growth ETF
iShares S&P 500 Value ETF
iShares Russell Mid -Cap ETF
Harbor Capital Appreciation — Retirement
Vanguard Real Estate ETF
T. Rowe Price Growth Stock - I
iShares Russell 2000 Value ETF
iShares Russell Mid -Cap ETF
iShares Russell 2000 Growth ETF
Vanguard Real Estate ETF
iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6
Vanguard FTSE Emerging Markets ETF
Vanguard Small Cap Growth ETF
Vanguard Short -Term Invest -Grade Adm
DFA Large Cap International Portfolio
iShares Core U.S. Aggregate
Dodge & Cox International Stock
Vanguard High -Yield Corp Adm
MFS International Growth - R6
First American Government Obligations Z
Hartford Schroders Emerging Markets Eq
Vanguard Short -Term Invest -Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z
STYLE
Holdings are subject to change at the
discretion of the investment manager.
Large Cap Value Real Estate
9.4 % 2.0% Small Cap
10.0 %
Cash
8.5 % rI nterm-Term Bond
F 16.1 %
Intl Stocks High Yield
0.8
13.2
Short -Term Bond
3.3 %
Mid Cap �
6.9%
Large Cap Core
Large Cap Growth 21 5 %
8.3 %
The performance records shown represent a size -weighted composite of tax exempt accounts that meet the following
criteria: Accounts are managed by HighMark with full investment authority according to the PARS Capital Appreciation
active and passive objectives.
The adviser to the PARS portfolios is US Bank, and HighMark serves as sub -adviser to US Bank to manage these
portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays
HighMark 60 % of the annual management fee for assets sub -advised by HighMark under its sub -advisory agreement with
US Bank. The 0.36 % paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio,
will reduce the portfolio's returns. Assuming an investment for five years, a 5 % annual total return, and an annual sub -
advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow
to $12.53 million after fees (Net -of -Fees) and $12.76 million before fees (Gross -of -Fees). Gross returns are presented
before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other
income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional
information regarding the firm's policies and procedures for calculating and reporting performance results is available upon
request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment
advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on
trade -date accounting.
Blended benchmarks represent HighMark's strategic allocations between equity, fixed income, and cash and are
rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but
assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged
S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is
a free float -adjusted market capitalization index designed to measure developed market equity performance, excluding the
U.S. and Canada. The MSCI Emerging Markets Index is a free float -adjusted market capitalization index that is designed to
measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance
of the mid -cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small -cap
segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below
investment grade U.S. dollar -denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT
index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond
Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate &
Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term
to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month
U.S. Treasury Bill.
HighMark Capital Management, Inc. (HighMark), an SEC -registered investment adviser, is a wholly owned subsidiary of
MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for -profit
and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas
Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance
does not guarantee future results. Individual account management and construction will vary depending on each client's
investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any
other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate,
and MAY lose value, including possible loss of principal.
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Table of Contents
October 31, 2022
STAFF REPORT
Certificates of Participation (COP) Quarterly Report
for the Period Ended September 30, 2022
Summary
The Orange County Sanitation District (OC San) began issuing Certificates of
Participation (COPs) in 1990. These COPs were a part of our long-term financing plan
that included both variable interest rate and traditional fixed rate borrowing. There
remains no variable interest rate COPs at OC San. Following are the current outstanding
debt issues of OC San:
In May 2010, OC San issued $80 million of fixed rate Build America Bonds (BABs), Series
2010A at a true interest cost of 3.68 percent for the issue.
In December 2010, OC San issued $157 million of fixed rate BABs, Series 2010C at a
true interest cost of 4.11 percent for the issue.
In August 2014, OC San issued $85.09
refunding a portion of Series 2007B debt.
percent.
million of fixed rate COPs, Series 2014A,
The true interest cost for the issue is 2.34
In February 2015, OC San issued $127.51 million of fixed rate COPs, Series 2015A,
refunding $152.99 million of the Series 2007B debt. The true interest cost for the issue is
3.30 percent.
In March 2016, OC San issued $145.88 million of fixed rate COPs, Series 2016A,
refunding $162.78 million of the Series 2009A fixed rate debt. The true interest cost for
the issue is 3.02 percent.
In February 2017, OC San issued $66.37 million of fixed rate COPs, Series 2017A,
refunding $91.885 million of the Series 2007A debt. The true interest cost for the issue is
2.55 percent.
In July 2021, OC San issued $133.51 million of fixed rate COPs, Series 2021A, refunding
$61.575 million of the Series 2011 A fixed rate debt and $102.2 million of the Series 2018A
fixed rate debt. The true interest cost for the issue is 1.06 percent.
Table of Contents
Quarterly COP Report
For the Period Ended September 30, 2022
Page 2 of 2
In February 2022, OC San issued $81.62 million of fixed rate COPs, Series 2022A,
refunding $100.645 million of the Series 2012A fixed rate debt and $6.67 million of the
Series 2012B fixed rate debt. The true interest cost for the issue is 1.59 percent.
Additional Information
The graph entitled, "COP Rate History Report," shows the various fixed interest rates of
OC San's eight debt issues.
Attachment
1. Graph - COP Rate History Report
Table of Contents
5.00
4.00
3.00
w
Q
2.00
1.00
OC SAN COP RATE HISTORY REPORT
SEPTEMBER 2022
N N N N N N N N N N N N N N N
N N N
p. 4 �' N N 3 _ Of 61 m 6 6
N O O z° z° ❑ N 7 T n Q Q N y
DATE N 16 c 6 N N N N M N
Series 2010A Fixed --*--Series 2010C Fixed t Series 2014A Fixed t Series 2015A Fixed Series 2016A Fixed t Series 2017A Fixed —49— Series 2021 A Fixed --*—Series 2022A Fixed
Table of Contents
FY 2022-23 First Quarter Financial Report
This Page Intentionally Left Blank
Orange County Sanitation District
Financial Management Division
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411 1 www.ocsan.gov
09/30/22
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2590 Agenda Date: 11/9/2022 Agenda Item No: 3.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
SERVICENOW IT SERVICE MANAGEMENT LICENSE RENEWAL
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
A. Approve a Purchase Order to Insight Public Sector for the purchase of ServiceNow License
Renewal using the OMNIA Partners Public Sector (formerly U.S. Communities) cooperative
contract #4400006644 for a one-year contract for the period of December 30, 2022 through
December 29, 2023 for a total amount not to exceed $112,408, plus tax and delivery (if
applicable); and
B. Approve a contingency of $11,241 (10%).
BACKGROUND
The Orange County Sanitation District's (OC San) Information Technology (IT) division utilizes
ServiceNow Information Technology Service Management (ITSM) software to track, manage, and
deliver IT assets and services. The IT division processes nearly 1,000 service requests and incidents
per month utilizing this software. All system changes are documented and approved through
ServiceNow for auditing purposes. The ITSM system is the primary system used to track the
division's day-to-day operations and ensures that all activities are conducted effectively and efficiently
with available resources.
Staff is requesting a contingency of 10% to cover any additional software license increases during
this one-year contract. Additional licenses may be required to comply with contractor staffing
changes.
RELEVANT STANDARDS
• Protect OC San assets
• Participate in local, state, and national cooperative purchasing programs
Orange County Sanitation District Page 1 of 2 Printed on 11/1/2022
powered by LegistarTIM
File #: 2022-2590
PROBLEM
Agenda Date: 11/9/2022 Agenda Item No: 3.
The existing ServiceNow ITSM licenses expire on December 30, 2022. OC San needs the renewal
to continue to utilize the software.
PROPOSED SOLUTION
Renew OC San's ServiceNow ITSM software licenses for one year.
TIMING CONCERNS
Renewal of the ServiceNow ITSM software licenses should occur prior to December 30, 2022, to
ensure software availability without disruption.
RAMIFICATIONS OF NOT TAKING ACTION
Access to the ServiceNow ITSM software would become unavailable for OC San staff. OC San's IT
division would no longer be able to track and manage its portfolio of IT services, including assets,
service requests, incidents, and change requests.
PRIOR COMMITTEE/BOARD ACTIONS
November 2021 - Board of
software subscription of the
contingency of 10% ($47,451).
ADDITIONAL INFORMATION
107M
CEQA
N/A
Directors authorized a Purchase Order for the implementation and
ServiceNow ITSM software platform for $474,505; and approved a
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 48, Information Technology Capital
Program (M-MC-IT)).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
N/A
Orange County Sanitation District Page 2 of 2 Printed on 11/1/2022
powered by LegistarTM
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2595 Agenda Date: 11/9/2022 Agenda Item No: 4.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE -APPROVED
OEM SOLE SOURCE LIST
GENERAL MANAGER'S RECOMMENDATION
IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.1: 1 01 o a 91 Ragre= on
A. Receive and file Orange County Sanitation District purchases made under the General
Manager's authority for the period of July 1, 2022 to September 30, 2022; and
B. Approve the following additions to the pre -approved OEM Sole Source List:
• BEAMEX - Maintenance and Support for CMX Calibration Software and CMX Business
Bridge Software
• FORD HALL COMPANY INC. - Weir Wolf/Algae Sweep Automation Cleaning
Equipment Parts and Service
• MIDWAY MANUFACTURING & MACHINE - Custom Brackets & Fittings for Vehicles /
Electric Carts and Portable Equipment
• VAPEX ENVIRONMENTAL TECHNOLOGIES - SENTINEL Scrubber Monitor/Controller
Products
BACKGROUND
Staff provides the Administration Committee and the Board of Directors quarterly reports of General
Manager approved and executed purchases between $50,000 and $100,000; maintenance and
repair Services Task Orders between $50,000 and $300,000; and additions to the pre -approved OEM
Sole Source List.
The list of additions to the pre -approved OEM Sole Source List displays the original equipment
manufacturers (OEM) added this quarter that require sole source procurement to maintain, service,
or replace equipment currently in operation at Orange County Sanitation District (OC San) facilities
because the parts and/or service can only be provided by the OEM or their designated
representative.
Orange County Sanitation District Page 1 of 4 Printed on 11/1/2022
powered by LegistarTIM
File #: 2022-2595
Agenda Date: 11/9/2022 Agenda Item No: 4.
RELEVANT STANDARDS
• Quarterly financial reporting
• Ensure the public's money is wisely spent
PRIOR COMMITTEE/BOARD ACTIONS
December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions
to the OEM Sole Source list on the General Manager's quarterly approved purchases agenda report.
ADDITIONAL INFORMATION
In accordance with Board purchasing policies, Ordinance No. OC SAN-56, the General Manager has
authority to approve and execute purchases between $50,000 and $100,000. Below is a summary of
General Manager approved purchases in amounts exceeding $50,000 for the first quarter of fiscal
year 2022-23:
Vendor Name
Amount
Department
Description/Discussion
BEC BUILDING
$90,000.00
Operations &
Convenience Blanket PO for Emergency
ELECTRONIC
Maintenance
Response to Fire Alarm Systems at Plants 1
CONTROLS INC
& 2 8/16/22 - 8/15/23 GM Article 2, Section
2.2 (b) (1)
CHART
$90,000.00
Operations &
Convenience Blanket PO for Urgent Repair
INTERNATIONAL,
Maintenance
for LOX Tank Systems and Portable Trailer
INC
/23/22 - 6/30/24 GM Article 2, Section 2.2
(b) (1)
COOPER
$86,753.95
Administrative
3tock Item Purchase of Two (2) Cooper
MACHINERY
Services
enGen Engine Cylinder Heads Board
SERVICES LLC
pproved OEM Sole Source List M.O.
/23/17, Item 9(B)
CORTECH
$61,139.00
Operations &
Stock Item Purchase of One (1) SEEPEX
ENGINEERING, INC.,
Maintenance
Progression Cavity Pump with Drive Board
A DXP COMPANY
pproved OEM Sole Source List M.O.
12/14/16, Item 12(B)
FLO-SYSTEMS, INC.
$82,998.00
Operations &
Purchase of Fairbanks Morse Pump for Seal
Maintenance
Beach Pump Station Board Approved OEM
Sole Source List M.O. 8/28/19, Item 3(B)
GEA MECHANICAL
$50,934.48
Administrative
Stock Item Purchase of GEA Westfalia
EQUIPMENT US,
Services
entrifuge Parts Board Approved OEM Sole
INC.
Source List M.O. 9/23/23, Item 12(B)
HACH COMPANY
$59,725.08
Operations &
Blanket PO to Provide Semi -Annual and
Maintenance
Annual Preventative Maintenance Site Visits
o Service Specific Hach Equipment at
Plants 1 & 2 7/1 /22 - 6/30/24 Board
Approved OEM Sole Source List M.O.
12/14/16, Item 12(B)
HOWDEN ROOTS
52,000.00
perations &
lass 1 (18,000 Hour) Service for Four (4)
LLC
Maintenance
[Blowers at Plant 1 Board Approved OEM
ole Source List M.O. 12/14/16, Item 12(B)
Orange County Sanitation District Page 2 of 4 Printed on 11/1/2022
powered by LegistarTM
File #: 2022-2595
Agenda Date: 11/9/2022 Agenda Item No: 4.
JAMISON
$55,850.00
Operations &
Trickling Filter C Component Replacement at
ENGINEERING
Maintenance
Plant 2 Board Approved OEM Sole Source
CONTRACTORS INC
List M.O. 11/17/21, Item 14(B)
JAMISON
$90,000.00
Operations &
Blanket PO for Routine and Emergency
ENGINEERING
Maintenance
Repairs on Trickling Filters 9/23/22 - 6/30/23
CONTRACTORS INC
Board Approved OEM Sole Source List
M.O. 11/17/21, Item 14(B)
LUXER ONE
$50,173.00
Administrative
Blanket PO to Provide and Install Automated
Services
Locker Systems Including Software
Integration and On -Site Training 12/26/22 -
12/25/23 with 4 Optional Renewal Periods
Specification No. S-2022-1338
MISCO WATER
$91,360.00
Administrative
Stock Purchase of Two (2) Philadelphia
Services
Mixer Gearboxes Specification No. RFQ
0791
NATIONAL AUTO
$56,054.76
Operations &
Purchase of New 2023 Ford Transit T250
FLEET GROUP*
Maintenance
Cargo Van Approved CORF Budget FY
1/22 Sourcewell Contract# 091521-NAF, in
ccordance with Ordinance OC SAN-56
Section 2.03 (B) Cooperative Purchases
NATIONAL AUTO
$56,054.76
Operations &
Purchase of New 2023 Ford Transit T250
FLEET GROUP*
Maintenance
argo Van Approved CORF Budget FY
1/22 Sourcewell Contract# 091521-NAF, in
ccordance with Ordinance OC SAN-56
Section 2.03 (B) Cooperative Purchases
PARAMOUNT
$69,801.19
Operations &
Purchase of One (1) Primary Treatment
PLASTIC
Maintenance
Scrubber Acid Tank Specification No. S-2021
FABRICATORS
1298
PRIMARY GAS
$80,000.00
Environmental
Blanket PO to Provide Laboratory Gases to
SOLUTIONS, LLC
Services
he Laboratory at Plant 1 9/16/22 - 6/30/23
ith 4 Optional Renewal Periods
Specification No. C-2022-1317-R
QUINCY
$57,750.00
Operations &
Purchase of Quincy Compressor Duplex
COMPRESSOR
Maintenance
Rotary Vane Vacuum Pump Unit Board
Approved OEM Sole Source List M.O.
/28/18, Item 13(B)
SCHWING BIOSET
$91,589.78
Administrative
Stock Item Purchase of Sludge Transfer
Services
Pump Parts Board Approved OEM Sole
Source List M.O. 12/14/16, Item 12(B)
T AND D
$90,000.00
Administrative
Convenience Blanket PO to Provide
COMMUNICATIONS,
Services
elecom Cabling at Plants 1 & 2 9/23/22 -
INC.
/22/24 GM Article 2, Section 2.2 (b) (1)
UTILITY SYSTEMS,
$78,200.00
Engineering
Blanket PO to Provide Flow Monitoring
SCIENCE &
ervices at the Greenville Trunk Sewer,
SOFTWARE INC
MacArthur Pump Station, and Edinger Pump
Station 8/1/22 - 7/31/23 with 1 Optional
Renewal Period Specification No. S-2022-
1325
Orange County Sanitation District Page 3 of 4 Printed on 11/1/2022
powered by LegistarTM
File #: 2022-2595
Agenda Date: 11/9/2022 Agenda Item No: 4.
VERTECH
$65,000.00
Operations &
Blanket PO to Provide Software
INDUSTRIAL
Maintenance
Maintenance and Support Services 7/1/22 -
SYSTEMS, LLC
/30/23 with 4 Optional Renewal Periods
Sole Source Justification 2559 Reason:
Unique Product/Service
WAYNE PERRY INC
$97,100.00
Operations &
Blanket PO for UST Certification,
Maintenance
Maintenance, and Designated Operator
Services 7/1/22 - 6/30/23 with 4 Optional
Renewal Periods Specification No. S-2022-
1324
*Due to industry vehicle supply being low, purchases were made individually as vehicles became available from the
vendor.
Additionally, in accordance with Board purchasing policies, Ordinance No. OC SAN-56, the General
Manager has authority to approve and execute maintenance and repair Services Task Orders
between $50,000 and $300,000. Below is a summary of General Manager approved maintenance
and repair Services Task Orders in amounts exceeding $50,000 for the first quarter of fiscal year
2022-23:
Vendor Name
Amount
Department
Description/Discussion
JAMISON
$238,750.00
Operations &
Primary Sedimentation Basin F Dome Post
ENGINEERING
Maintenance
Repairs at Plant 2 Specification No. TOB-2022
CONTRACTORS INC
1335-R of Master Service Contract S-2021-
1234BD-3
J R FILANC
$74,135.00
Operations &
Basin Storm Drain and Curb Repair
CONSTRUCTION
Maintenance
throughout Plant 1 (MP-584) Specification No.
OB-2022-1339 of Master Service Contract S-
021-1234BD-2
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
N/A
Orange County Sanitation District Page 4 of 4 Printed on 11/1/2022
powered by LegistarTM
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2582 Agenda Date: 11/9/2022 Agenda Item No: 5.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
COOPERATIVE PROCUREMENT AGREEMENTS
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Authorize the purchasing of information technology products, services, and solutions utilizing
Cooperative Procurement Agreements (CPA) such as, but not limited to, OMNIA Partners Public
Sector (formerly U.S. Communities), NASPO ValuePoint, and U.S. General Services Administration
GSA Schedule 70/ GSA Multiple Award Schedule (MAS) for the period January 1, 2023 through
December 31, 2023 for a total amount not to exceed $2,000,000, in accordance with Ordinance No.
OCSD-56, Section 2.03(B) Cooperative Purchases, with two (2) one-year renewal options.
1 :(r1:Z9111 Z I III]
The Orange County Sanitation District (OC San) desires to utilize the CPA as providers of technology
products, services, and solutions. The CPAs are needed to provide technology solutions based on
competitive contract pricing, breadth of product offerings, availability, and the ease of using online
ordering systems. Large capital items will be procured through the bidding process and all
purchases continue to follow the existing approval and procurement processes in accordance with
OC San's Purchasing Ordinance. These CPAs provide deep discounts not normally available
through OC San's bid process.
To properly maintain and provide solutions to OC San's facilities, the Information Technology (IT)
division has a need to purchase technology products, services, and solutions. Such item
requirements have been forecasted based upon projected obsolete equipment, historical product
failure rates, and new items to address general capacity, redundancy, or security. Since technology
changes frequently, it is not appropriate to stock these items in OC San's warehouses.
IT currently uses vendors providing technology items and recurring maintenance support and
services using GSA Schedule 70/ GSA Multiple Award Schedule (MAS) Contract, NASPO
ValuePoint, and OMNIA Partners Public Sector (Formerly known as U.S. Communities Government
Purchasing Alliance). Purchases include:
• Networking and telephony equipment
• Servers and desktop computers
Orange County Sanitation District Page 1 of 4 Printed on 11/1/2022
powered by LegistarTIM
File #: 2022-2582 Agenda Date: 11/9/2022 Agenda Item No: 5.
• Data storage and backup appliances
• Software licenses and maintenance agreements
• Consulting services
• Disaster recovery and cyber security solutions
• Printers, scanners, and monitors
• Computer peripherals
• Uninterruptible power supply components
Example OMNIA Partners Public Sector contracts include:
• Insight Public Sector Contract: Technology Products, Services and Solutions - Contract
Number: 4400006644, Lead Agency: County of Fairfax, Virginia
• Graybar Contract: Electrical, Lighting, Data Communications and Security Products and
Related Products, Services and Solutions- Contract # EV2370, Lead Agency: City of Kansas
City, MO
Example NASPO ValuePoint contracts include:
• Cisco Contract # AR3227 with multiple contract holders for Data Communications, Lead
Agency: State of Utah
• HP, Inc.: Computer Equipment, Peripherals & Related Services - Master Agreement Number:
MNNVP-133, Lead State: Minnesota
Example U.S. General Services Administration GSA Schedule 70/ GSA Multiple Award Schedule
(MAS) include:
• e-Plus Technology, Inc. Contract: Internet Security, LAN/WAN, Project Mgmt., System Design,
System Implement, System Integration, System Management, System Security, etc. Brands:
IT Consult, IT Service, IT Training- Contract Number: GS-35F-0673N
• EC America Contract: Various Software, Services and Hardware -Contract Number: # GS-35F-
0511T
RELEVANT STANDARDS
• Ensure the public's money is wisely spent
• Participate in local, state, and national cooperative purchasing programs
• Maintain a culture of improving efficiency to reduce the cost to provide the current service level
or standard
PROBLEM
The procurement process for information technology items and services for OC San involves many
efforts and associated costs. IT and Purchasing work diligently in finding ways to streamline the
procurement process while minimizing cost concomitant of the procurement of technology items.
Orange County Sanitation District Page 2 of 4 Printed on 11/1/2022
powered by LegistarT"
File #: 2022-2582 Agenda Date: 11/9/2022 Agenda Item No: 5.
PROPOSED SOLUTION
OC San's purchasing power is limited, therefore, utilizing other large agencies' cooperative
agreement(s) who have completed a vetted procurement process is a viable and economical
solution.
TIMING CONCERNS
Maintenance and deployment of new systems and solutions is imperative for continued support of
plant operations and maintenance initiatives without delay.
RAMIFICATIONS OF NOT TAKING ACTION
Risk of being unable to maintain/deploy or delay IT projects supporting plant operations and
maintenance. Increased costs related to the procurement of technology items.
PRIOR COMMITTEE/BOARD ACTIONS
October 2019 - Board authorized the purchasing of information technology products, services, and
solutions utilizing Cooperative Procurement Agreements (CPA) from U.S. General Services
Administration (GSA) IT Schedule 70, National Association of State Procurement Officials ValuePoint
Cooperative Purchasing Organization, and OMNIA Partners, Public Sector (formerly U.S.
Communities) for the period January 1, 2020 through December 31, 2020 for a total amount not to
exceed $2,000,000, in accordance with Ordinance No. OCSD-52, Section 2.03(8) Cooperative
Purchases, with two (2) one-year renewal options.
ADDITIONAL INFORMATION
The State of California Procurement Division is the central purchasing authority for all State
departments and local government agencies. With a massive marketplace and billions of dollars in
purchasing power, they can offer a lower procurement cost to California's State, county, city, special
district, education, and other government entities through their Leveraged Procurement Agreements
(LPAs). LPAs <http://www.dgs.ca.gov/pd/Programs/Leveraged.aspx> allow entities/agencies to buy
directly from suppliers through existing contracts and agreements. Upon utilization of each contract
under these LPAs, OC San staff verifies competitiveness of pricing based upon volume purchasing
through these cooperatives.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of OC San's Purchasing Ordinance. This item has been
budgeted. (FY2022-23 & 2023-24 Budget, Section 8, Page 49, Information Technology Capital
Program (M-MC-IT)).
Orange County Sanitation District Page 3 of 4 Printed on 11/1/2022
powered by LegistarT"
File #: 2022-2582
Agenda Date: 11 /9/2022 Agenda Item No: 5.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
N/A
Orange County Sanitation District Page 4 of 4 Printed on 11/1/2022
powered by LegistarT"
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2587 Agenda Date: 11/9/2022 Agenda Item No: 6.
FROM: James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
EMISSION REDUCTION CREDITS BROKER SOLICITATION
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION: Recommend to the Board of Directors to:
Approve the solicitation for an Emission Reduction Credits (ERCs) brokerage firm to identify and
secure a buyer(s) for the sale of surplus Reactive Organic Gases (ROG) ERCs at the best available
value and to handle all market evaluations of ERCs, negotiations, and financial transactions with all
appropriate parties.
BACKGROUND
Orange County Sanitation District (OC San) holds a portfolio of Air Quality ERCs including, but not
limited to, Reactive Organic Gases (ROGs). ERCs are treated as an interchangeable commodity. To
acquire an air quality permit for new projects that result in an increase in emissions, the owner of the
project is required to offset the difference in emissions with ERCs. Following a comprehensive
review of future Capital Improvement Program (CIP) needs, it has been determined that OC San has
a surplus of ROG credits. If OC San takes a conservative approach and retains twice the number of
ROG credits that could be needed for future projects, the remaining amount of credits available for
sale is 360 lbs./day (pollutant emissions are determined on a pound per day basis).
Based on preliminary market assessment and trends in air quality regulations, staff believes that the
value of ROG credits will remain stable for the foreseeable future. In fact, the fair market value of
ROG credits has not changed since 2020. For this reason, OC San requests to secure a brokerage
firm to sell the surplus credits at fair market value.
RELEVANT STANDARDS
• Ensure that investment proposals and decisions are based on clearly defined standards
• Comply with environmental permit requirements
• 24/7/365 treatment plant reliability
Orange County Sanitation District Page 1 of 3 Printed on 11/2/2022
powered by LegistarTIM
File #: 2022-2587 Agenda Date: 11/9/2022 Agenda Item No: 6.
PROBLEM
OC San has a surplus of ROG credits which is unlikely to increase or decrease in value for the
foreseeable future. It is of no immediate or future benefit to OC San to continue holding these
surplus credits.
PROPOSED SOLUTION
Solicit and secure an ERC brokerage firm to identify and secure buyer(s) for the sale of OC San's
surplus ROG ERCs (up to 360 lbs. per day) at the current fair market value and handle all market
evaluation of ERCs, negotiations, and financial transactions with all appropriate parties.
III►hIIL1[rZ916]P[a]4N►1.1
The value of ROG credits has remained stable since 2020 at an average market value of $4,750
lb./day. Additionally, the value does not appear to fluctuate with short- or long-term inflationary
indices. Given the current economic climate, the proceeds from the sale of the surplus credits may
enable OC San to reinvest the revenue and achieve greater gains from this asset.
RAMIFICATIONS OF NOT TAKING ACTION
The surplus credits will remain unused by OC San for the foreseeable future and the monetary value
of the credits will remain inaccessible for reinvestment.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Presently, OC San has a current ROG credit holding of 442 lbs./day. OC San recommends selling
over 80% of its current holdings (360 lbs./day) leaving 82 lbs./day. Future CIP project needs are
covered with the remaining ROG credits, which is sufficient to account for a full replacement of an
entire treatment plant from scratch. The total value of the surplus ROG credits taking into account
the transactional costs will vary at the time of sale.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
Orange County Sanitation District Page 2 of 3 Printed on 11/2/2022
powered by LegistarTM
File #: 2022-2587
Agenda Date: 11 /9/2022 Agenda Item No: 6.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Presentation
Orange County Sanitation District Page 3 of 3 Printed on 11/2/2022
powered by LegistarTM
11/1/2022
a
Essential Emission
Public Services
Reduction
Credits
gig r
Orphan
Shutdowns
11/1/2022
Reactive •(ROG)Surplus
sz
■Surplus ROGs (lbs/day)
■Retain for Future Expansion
Projects (lbs/day)'
360 * Pollutant emissions are determined
on a pound per day Qb/day) basis
3
Recommend to the Board of Directors to:
Approve the solicitation for an Emission Reduction Credits (ERCs)
brokerage firm to identify and secure a buyer(s) for the sale of
surplus Reactive Organic Gases (ROG) ERCs at the best available
value and to handle all market evaluations of ERCs, negotiations,
and financial transactions with all appropriate parties.
M
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2387 Agenda Date: 11/9/2022 Agenda Item No: 7.
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
ORANGE COUNTY SANITATION DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR END JUNE 30, 2022
GENERAL MANAGER'S RECOMMENDATION
IV:tole] 1TAIf•1a101�7_,11[61,01M - • i 0FIrmi3.10 i1 ona91 Rag re= on
Receive and file the Orange County Sanitation District's (OC San) Annual Comprehensive Financial
Report (ACFR) for the year ended June 30, 2022, prepared by staff and audited by Davis Farr,
Certified Public Accountants, along with the following reports prepared by Davis Farr:
1. Report to the Board of Directors;
2. Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit
Worksheets; and
3. 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.
BACKGROUND
The ACFR for the year ended June 30, 2022 is attached for the Administration Committee's
consideration. Included within the report are OC San's financial statements for the year ended June
30, 2022, along with the Independent Auditor's Report that includes the unmodified opinion.
RELEVANT STANDARDS
• Produce appropriate financial reporting - annual financial report & audit letter
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Report to the Board of Directors
• Independent Accountant's Report on Applying Agreed -Upon Procedures Related to
Appropriations Limit Calculation
• Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Orange County Sanitation District Page 1 of 2 Printed on 11/1/2022
powered by LegistarTIM
File #: 2022-2387
Agenda Date: 11/9/2022 Agenda Item No: 7.
Based on an Audit of Financial Statements Performed in Accordance With Government
Auditing Standards
Annual Comprehensive Financial Report for the Year Ended June 30, 2022
Presentations
Orange County Sanitation District Page 2 of 2 Printed on 11/1/2022
powered by LegistarT"
0 1 DavisFar r
CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors
Orange County Sanitation District
Fountain Valley, California
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 1 Irvine, CA 92612
Main: 949.474.2020 1 Fax: 949.263.5520
We have audited the financial statements of Orange County Sanitation District (OC San) as
of and for the year ended June 30, 2022, and have issued our report thereon dated October
25, 2022. Professional standards require that we advise you of the following matters relating
to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated April 22, 2022, our responsibility, as
described by professional standards, is to form and express an opinion about whether the
financial statements that have been prepared by management with your oversight are
presented fairly, in all material respects, in accordance with accounting principles generally
accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit
to obtain reasonable, rather than absolute, assurance about whether the financial statements
are free of material misstatement. An audit of financial statements includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control over financial reporting. Accordingly, as part of
our audit, we considered the internal control of OC San solely for the purpose of determining
our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are,
in our professional judgment, relevant to your responsibilities in overseeing the financial
reporting process. However, we are not required to design procedures for the purpose of
identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously
communicated to you in our letter dated July 5, 2022.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, and our firm have complied with
all relevant ethical requirements regarding independence under the American Institute of
Certified Public Accountants ("AICPA") independence standards, contained in the Code of
Professional Conduct.
Significant Risks Identified
For purposes of designing our audit procedures, we identified the following significant risks:
The new lease accounting standard, Governmental Accounting Standards Board
(GASB) Statement No. 87. As a result, we reviewed OC San's inventory of leases,
reviewed a sample of lease agreements, tested the calculations of the lease
transactions, and ensured OC San's lease disclosure footnotes are accurate and
complete in accordance with the new standard.
• The 2021A and 2022A Wastewater Refunding Revenue Bonds. As a result, we reviewed
bond documents and journal entries recording the bonds to ensure the new refunded
debt transactions were recorded correctly and ensured the financial statement contain
complete and accurate disclosures of the new debt.
• The recording of capital assets. As a result, we selected a sample of at least 65% of
outstanding construction projects and met with OC San's personnel do determine the
status of the project. We will also select a sample of project expenses and review the
transactions to ensure they meet the criteria for capitalization.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A
summary of the significant accounting policies adopted by OC San is included in Note 1 to the
financial statements. As described in Note 1 to the financial statements, during the year, the
entity changed its method of accounting for leases by adopting Governmental Accounting
Standards Board (GASB) Statement No. 87, Leases, in the fiscal year 2022. No matters have
come to our attention that would require us, under professional standards, to inform you
about (1) the methods used to account for significant unusual transactions and (2) the effect
of significant accounting policies in controversial or emerging areas for which there is a lack
of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's current judgments. Those judgments are
normally based on knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events
affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements include:
• Judgments involving the useful lives and depreciation methodology to use for capital
assets
• Judgments concerning which capital project expenditures should be capitalized and
depreciated versus expensed in the financial statements and judgments concerning
which projects should be placed in service
• Estimates involving the calculation of the net pension liability and related
transactions
• Estimates involving the calculation of the other post -employment benefit (OPEB)
liability and related transactions
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly
sensitive because of their significance to financial statement users. The most sensitive
disclosures affecting OC San's financial statements relate to:
• The disclosure of investment fair value in note 2 to the financial statements
• The disclosure of pensions in note 6 to the financial statements
The disclosure of OPEB in note 7 to the financial statements
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the
performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all
known and likely misstatements identified during the audit, other than those that we believe
are trivial, and communicate them to the appropriate level of management. Further,
professional standards require us to also communicate the effect of uncorrected
misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole and each applicable opinion
unit. There were no uncorrected misstatements identified during the audit.
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit
procedures. There were no material misstatements noted as a result of our audit procedures.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management
as a matter, whether or not resolved to our satisfaction, concerning a financial accounting,
reporting, or auditing matter, which could be significant to OC San's financial statements or
the auditor's report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in
the attached letter dated October 25, 2022.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing
and accounting matters. Management informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with OC San, we generally discuss a
variety of matters, including the application of accounting principles and auditing standards,
significant events or transactions that occurred during the year, operating and regulatory
conditions affecting the entity, and operational plans and strategies that may affect the risks
of material misstatement. None of the matters discussed resulted in a condition to our
retention as OC San's auditors.
Other Information Included in the Annual Comprehensive Financial Report
Pursuant to professional standards, our responsibility as auditors for other information,
whether financial or nonfinancial, included in OC San's annual reports, does not extend
beyond the information identified in the audit report, and we are not required to perform any
procedures to corroborate such other information. However, in accordance with such
standards, we have read the information and considered whether such information, or the
manner of its presentation, was materially inconsistent with its presentation in the financial
statements.
Our responsibility also includes communicating to you any information which we believe is a
material misstatement of fact. Nothing came to our attention that caused us to believe that
such information, or its manner of presentation, is materially inconsistent with the
information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the Board of Directors, and
management of OC San and is not intended to be and should not be used by anyone other
than these specified parties.
Irvine, California
October 25, 2022
DavisFarr
CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 1 Irvine, CA 92612
Main: 949.474.2020 1 Fax: 949.263.5520
INDEPENDENT ACCOUNTANT'S REPORT
The Board of Directors
Orange County Sanitation District
Fountain Valley, California
We have performed the procedures enumerated below on Orange County Sanitation District
(OC San) appropriations limit worksheets for compliance with the requirements of Section
1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2022. OC San
is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.
OC San has agreed to and acknowledged that these procedures are appropriate to meet the
intended purpose of evaluating compliance with the requirements of Section 1.5 of Article
XIIIB of the California Constitution and the League of California Cities publication entitled
Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2022.
This report may not be suitable for any other purpose. The procedures performed may not
address all the items of interest to a user of this report and may not meet the needs of all
users of this report and, as such, users are responsible for determining whether the
procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
We obtained the worksheets referred to above and compared the limit and
annual adjustment factors included in those worksheets to the limit and annual
adjustment factors that were adopted by resolution of the Board of Directors. We
also compared the population and inflation options included in the
aforementioned worksheets to those that were selected by a recorded vote.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical computations reflected in OC San's
worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year
limit and agreed it to worksheets prepared by OC San and information provided
by the State Department of Finance.
Results: No exceptions were noted as a result of our procedures.
4. We compared the amount of the prior year appropriations limit presented in the
worksheets to the amount adopted by the Board of Directors for the prior year.
Results: No exceptions were noted as a result of our procedures.
The Board of Directors
Orange County Sanitation District
Fountain Valley, California
We were engaged by OC San to perform this agreed -upon procedures engagement and
conducted our engagement in accordance with standards established by the American
Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively on the worksheets referred to above. Accordingly, we do not
express such an opinion or conclusion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you. No
procedures have been performed with respect to the determination of the appropriation
limit for the base year, as defined by the League publication entitled Article XIIIB
Appropriations Limitation Uniform Guidelines.
We are required to be independent of OC San and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements related to our agreed -upon procedures
engagement.
This report is intended solely for the information and use of the Board of Directors and
Management of OC San and is not intended to be, and should not be, used by anyone other
than the specified party.
X��7 L-A-P
Irvine, California
October 25, 2022
•�• DavisFarr
CERTIFIED PUBLIC ACCOUNTAN75
Board of Directors
Orange County Sanitation District
Fountain Valley, California
❑avis Farr LLP
18201 Von Karmen Avenue I Suite 1100 1 Irvine. CA 92612
M a i n: 949.474.2 020 1 Fa x: 949.263.552 0
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
Independent Auditor's Report
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 financial
statements as of and for the year ended June 30, 2022, and the related notes to the financial
statements, which collectively comprise the Orange County Sanitation District's (OC San)
basic financial statements, and have issued our report thereon dated October 25, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the OC San's
internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the OC San's internal control. Accordingly, we do not express an opinion on the effectiveness
of the OC San'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 entity's 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 the Orange County Sanitation
District's financial statements are free from 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 entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
J4� �e- 4-�
Irvine, California
October 25, 2022
_ J
q
orange coi
IHnHow
IM■■E.■L
:m ■ffoMm" """lu
J,
s
v/
init8tlon
DI
Dmpp(
Renni
OC6SAN
Orange County, California ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared By:
Administrative Services Department
Financial Management Division
Wally Ritchie
Controller
(THIS PAGE LEFT INTENTIONALLY BLANK)
ORANGE COUNTY SANITATION DISTRICT
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended June 30, 2022
Paqe
INTRODUCTORY SECTION (Unaudited):
Letterof Transmittal..................................................................................................................... i-viii
GFOA Certificate of Achievement............................................................................................... ix
Boardof Directors........................................................................................................................ x
OrganizationalChart.................................................................................................................... A
Mapof Service Area.................................................................................................................... xii
FINANCIAL SECTION
Independent Auditor's Report......................................................................................................
1-3
Management Discussion and Analysis — Required Supplementary Information (Unaudited) ....
4-10
Basic Financial Statements:
Statement of Net Position...................................................................................................
12
Statement of Revenues, Expenses, and Change in Net Position ......................................
13
Statement of Cash Flows....................................................................................................
14
Notes to Basic Financial Statements..................................................................................
15-47
Required Supplementary Information (Unaudited):
Proportionate Share of the Net Pension Liability (Asset) — OCERS Pension Plan ............
50
Schedule of District Contributions — OCERS Pension Plan ...............................................
51
Total Pension Liability — Additional Retiree Benefit Account ..............................................
52
Changes in Total Pension Liability — Additional Retiree Benefit Account ...........................
53
Total OPEB Liability —Post-Employment Medical Benefits Plan .........................................
54
Changes in Total OPEB Liability —Post-Employment Medical Benefits Plan .....................
55
Supplementary Information:
Combining Area Schedule of Net Position..........................................................................
58
Combining Area Schedule of Revenues, Expenses, and Change in Net Position ............
59
Combining Area Schedule of Cash Flows..........................................................................
60
STATISTICAL SECTION (Unaudited):
Net Position by Component — Last Ten Fiscal Years..................................................................
62
Revenues and Gross Capital Contributions by Source — Last Ten Fiscal Years ........................
63
Expenses by Type — Last Ten Fiscal Years................................................................................
64
Change in Net Position — Last Ten Fiscal Years.........................................................................
65
Cash and Investment Reserve Balances — Last Ten Fiscal Years .............................................
66
Sewer Service Fees — Last Nine Fiscal Years and Next Fiscal Year ..........................................
67
Number of Accounts and Revenues by Customer Class — Last Ten Fiscal Years .....................
68
Principal Sewer Service Customers — Current Fiscal Year and Nine Years Ago .......................
69
Ratio of Annual Debt Service to Total Expenses — Last Ten Fiscal Years .................................
70
Debt Coverage Ratios — Last Ten Fiscal Years..........................................................................
71
Ratios of Outstanding Debt — Last Ten Fiscal Years..................................................................
72
Comparison of the Volume of Wastewater Treated — Last Ten Fiscal Years .............................
73
Authorized Full-time Equivalents by Function — Last Ten Fiscal Years ......................................
74
Biosolids Produced — Last Ten Fiscal Years...............................................................................
75
Capital Asset Statistics — Last Ten Fiscal Years.........................................................................
76
Demographic Statistics — Last Ten Fiscal Years.........................................................................
77
Estimated Population Served by Orange County Sanitation District ..........................................
78
Principal Orange County Employers — Current Fiscal Year and Nine Years Ago .......................
79
OperatingIndicators....................................................................................................................
80
OTHER DATA & TRENDS (Unaudited):
Cash and Investment Portfolio................................................................................................... 82
Property Tax Rates — Direct and Overlapping Governments — Last Ten Fiscal Years ............... 83
Assessed and Estimated Actual Value of Taxable Property — Last Ten Fiscal Years ................ 84
Property Tax and User Fee Levies and Collections — Last Ten Fiscal Years ............................. 85
Property Value and Construction — Last Ten Fiscal Years......................................................... 86
Insurancein Force....................................................................................................................... 87
(THIS PAGE LEFT INTENTIONALLY BLANK)
Table of Contents
OC6SAN1
Ellis Avenue
Fountainuntain Valley, CA 92708
714.962.2411
ORANGE COUNTY SANITATION DISTRICT www.ocsan.gov
October 25, 2022
The Board of Directors of the
Orange County Sanitation District,
Orange County, California
Subject: Letter of Transmittal
Submitted herewith is the Annual Comprehensive Financial Report of the Orange County
Sanitation District (OC San), Orange County, California for the fiscal year ended June 30, 2022.
This report includes the financial position and activity of individual revenue areas, as described
within the Governmental Structure below, as of June 30, 2022 and was prepared by the
Financial Management Division of OC San's Administrative Services Department.
Responsibility for both the accuracy of the data, and the completeness and fairness of the
presentation, including all disclosures, rests with OC San. To the best of our knowledge and
belief, the enclosed data is accurate in all material respects and is reported in a manner
designed to present fairly the financial position and changes in the financial position of OC San.
All disclosures necessary to enable the reader to gain an understanding of the agency's
financial activities have been included.
Included within the accompanying financial statements are all of the organizations, activities,
and functions controlled by OC San's Board of Directors in accordance with the Governmental
Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial
Reporting. For the purpose of this evaluation, control was determined by the Board's
responsibility for: (1) adoption of the budget and user charges, (2) taxing authority, and (3)
establishment of policies. The reporting entity and its services are described in further detail in
Note 1 of the financial statements.
An audit of the books, financial records, and transactions of OC San is conducted annually by
independent certified public accountants. OC San selected the accounting firm of Davis Farr
LLP to perform the audit for the year ended June 30, 2022. The auditor's report on OC San's
basic financial statements and supplementary information is located on page 1 within the
financial section of this report. This report renders an unmodified opinion on OC San's basic
financial statements for the year ended June 30, 2022.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. The MD&A complements this letter of transmittal and should be read in conjunction
with it.
GOVERNMENTALSTRUCTURE
The Orange County Sanitation District encompasses the central and northwest section of
Orange County. OC San provides wastewater treatment for an area of the County covering
479 square miles and serving a population of approximately 2.6 million, or 81 percent of the
County's population. OC San was originally incorporated in 1954 as seven separate public
corporations, or districts, with two additional districts added in 1985 and 1986. In April of 1998,
at OC San's request, the Board of Supervisors of the County of Orange passed Resolution No.
98-140 ordering the consolidation of these nine County Sanitation Districts into a new, single
sanitation district, to be known as the Orange County Sanitation District, effective July 1, 1998.
This action was recommended to the Board by the Local Agency Formation Commission in
Serving:
Anaheim
B rea
Buena Park
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
County of Orange
Costa Mesa
Sanitary District
Midway City
Sanitary District
Irvine Ranch
Water District
Yorba Linda
Water District
Our Mission: To protect public health and the environment by
providing effective wastewater collection, treatment, and recycling.
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
order to simplify governance structures, reduce the size of the Board, ease administrative processes,
streamline decision -making and consolidate accounting and auditing processes. The boundaries of the nine
previous districts had remained intact for the purpose of collecting sewer user fees at the previously
established rate schedules and were referred to as nine individual revenue areas through June 30, 2000.
Effective July 1, 2003, all revenue areas, except Revenue Area 14, consolidated user fee rates and all
enterprise fund accounting and budgeting activities and are now known as the Consolidated Revenue Area.
OC San is managed by an administrative organization composed of directors appointed by the agencies or
cities which are serviced by OC San. Each of the two remaining revenue areas, the Consolidated Revenue
Area and Revenue Area 14, has its own budget and is responsible for the construction and maintenance
of its own collection system. All revenue areas, except Revenue Area 14 and the portion of the Consolidated
Revenue Area previously known as Revenue Area 13, receive their own share of the one -percent ad
valorem property tax levy. In addition, all revenue areas, except Revenue Area 14, receive user fees from
property owners. Revenue Area 14 receives all of its revenues from service charges to the Irvine Ranch
Water District.
The purpose of OC San's wastewater collection, treatment, and recycling program is to protect the public's
health and the environment, preserving the beneficial uses of coastal waters and maintaining air quality.
The objectives of operating the treatment and reclamation plants are to process and pass on for purification
or dispose of the treated wastewater and the separated solids in accordance with federal, state, and local
laws including the Environmental Protection Agency.
OC San sewerage system includes approximately 388 miles of sewers that convey wastewater generated
within OC San's boundaries to OC San's two plants; Reclamation Plant No. 1 located in the City of Fountain
Valley, and Treatment Plant No. 2 located in the City of Huntington Beach.
Plants No. 1 and No. 2 have secondary treatment capacities of 182 million gallons per day (mgd) and 150
mgd, respectively. In fiscal year 2022-23, both plants are projected to receive a combined average daily
wastewater flow of 185 million gallons per day from residential, commercial, and industrial sources.
After wastewater receives secondary treatment at Plant No. 1, it flows to the Groundwater Water
Replenishment System (GWRS) at the Orange County Water District, located adjacent to OC San, where
it undergoes a state-of-the-art purification process consisting of microfiltration, reverse osmosis, and
ultraviolet light with hydrogen peroxide. The product water is near -distilled quality. Approximately 30 million
gallons (113,000 cubic meters) per day of the GWRS water are pumped into injection wells to create a
seawater intrusion barrier. Approximately 10 million gallons (38,000 cubic meters) are conveyed to injection
wells located in Santa Ana. Another 60 million gallons (227,000 cubic meters) are pumped daily to Orange
County Water District's percolation basins in Anaheim where the GWRS water naturally filters through sand
and gravel to the deep aquifers of the groundwater basin.
Remaining outflows of treated wastewater from Plants No. 1 and No. 2 are combined and discharged to
the ocean off the Huntington Beach coast through an outfall pipe that is 120 inches in diameter and
approximately five miles long. The last mile of the outfall pipe is a diffuser with over 500 ports through which
treated wastewater is slowly released at a depth of 200 feet.
ECONOMIC CONDITIONS AND OUTLOOK
Before the COVID-19 pandemic and shutdown beginning in March 2020, California's economy was growing
at a relatively low, but steady rate. The stay-at-home orders effectively shut down large portions of the state
and Orange County economies. California suffered higher job losses than the nation because of its
relatively greater stringency than other states in the attempt to reduce COVID-19 infections and deaths.
The California rebound in job growth in the aftermath of the COVID recession is likely to be short-lived.
Since more people are moving out of the state than those moving in, California lost population in 2021.
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
In June 2022, Chapman University forecasted Orange County's 2022 total payroll employment to increase
5.1 percent over the prior year, or the addition of 81,000 payroll jobs in 2022, following an increase of 3.1
percent in 2021. Payroll employment in Orange County experienced a steep decline and rapid recovery
from the COVID-19 recession as compared to previous recessions. According to the California Employment
Development Department (EDD), Orange County saw an increase of approximately 3.6 percent in payroll
jobs from August 2021 to August 2022. During this same time period, unemployment in Orange County
decreased from 6.0 percent to 3.0 percent while the unemployment in California as a whole decreased from
7.2 percent to 4.1 percent.
According to Chapman University, the total number of residential permits in Orange County is forecasted
to decline from 7,500 units in 2021 to 6,600 in 2022, a drop of 11.7 percent. Most of this decrease is
occurring because of a sharp spike of 2,500 multi -family units that were permitted in early 2021. Higher
mortgage rates are forecasted to reduce sales of existing homes from 38,600 in 2021 to 30,700 in 2022, a
drop of 20.5 percent. This drop in sales is occurring not only because there is a lower supply of homes for
sale but also because it's taking longer to sell a home. The average number of days to sell a home in the
County has increased from 19 days in mid -February 2022 to 38 days at the end of May 2022. That average
of 38 days to sell a home compares to 22 days in May 2021. With the mortgage rate forecasted to increase
to 6.5 percent by year-end, Chapman's projections show that the County's affordability index will decline
steeply to an all-time low of 57 as compared to 65 in California and 112 in the U.S. Higher mortgage rates
will also place downward pressure on home prices.
MAJOR INITIATIVES
Following are the Orange County Sanitation District's current major initiatives as outlined in the General
Manager's work plan for FY 2022-23:
1. Business Principles
• Rate Study - In preparation for establishing a new five-year rate program, conduct a five-year
rate study to determine customers' fair and equitable share of collection, treatment, and disposal
costs. Develop an accurate rate model which ensures full cost recovery and provides support to
the Proposition 218 notifications. This comprehensive rate study allocates costs to Flow,
Biochemical Oxygen Demand, and Total Suspended Solids for the purpose of billing different
customer classes including high flow and high strength dischargers and will be applicable to all
fees and charges including annexation fees and urban runoff fees. Study to be completed by
December 31, 2022.
• Asset Management Plan - Create an annual Asset Management Plan documenting the condition
for the collection system, treatment plants, and upcoming maintenance or capital projects by
December 31, 2022.
• Interagency Agreements for Wastewater Service - Conduct an analysis of consolidated
agreements set to expire to determine affected agencies, potential risks, opportunities, and a path
moving forward by June 30, 2023.
2. Environmental Stewardship
• Food Waste Treatment - Continue to meet on a quarterly basis with potential food waste pre-
processors on the feasibility of potential food waste process technology and siting logistics.
Collaborate with CASA to draft uniform standards for food waste slurry with an update to the Board
of Directors by December 31, 2022.
• Urban Runoff Optimization Study - Advertise for a Request for Proposal for an interagency
study among OC San, Orange County Water District, and Orange County Watersheds to study
the feasibility of accepting additional dry weather urban runoff and potential stormwater harvesting
by October 31, 2022.
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
• Energy Resilience - Investigate energy storage options to build resilience and offer potential cost
savings. Work with the consultant as part of the Energy Master Plan Study and report to the Board
of Directors by June 30, 2023.
• Fleet Long-term Strategy - The current fleet of vehicles is aging and will be subject to new
regulations that will require a change in the way vehicles are fueled and will require significant
new infrastructure facility changes. Staff will prepare a study based on probable adopted
requirements outlining fleet procurements and infrastructure changes necessary to meet the new
requirements by December 31, 2022.
• Headquarters Educational Display - Develop an educational display for the headquarters
building to illustrate OC San's reuse and recycling efforts in support of the environment and public
health. Have plan approved and in production by June 30, 2023, for installation by December
2023.
• Member Agency Outreach Program - Develop an outreach program for member agencies
regarding inflow and infiltration, FOG, and saltwater issues within their sewer systems. The
program will aim to educate, inform, and reduce these elements affecting the local and regional
sewer system by June 2023.
• Industrial Users Award Program - Develop an award program with the qualifying criteria for an
Industrial Users Award Program for consideration by the Board of Directors by December 31,
2022.
3. Wastewater Management
• Supercritical Water Oxidization - Complete the commissioning and begin demonstration of the
pilot project by June 30, 2023, subject to regulatory permitting.
• Chemical Sustainability Policy - Utilize the recently produced Chemical Sustainability Study to
perform testing for dosage reduction or chemical substitution and report back to the Board of
Directors by June 30, 2023.
• GWRS Final Expansion - Headworks Modifications at Plant No. 2 for GWRS Final Expansion
will be substantially completed by January 2023. OC San will host a celebration to commemorate
OC San's achievement of reusing 100 percent of the reclaimable flow upon completion of the
Groundwater Replenishment System's Final Expansion. Celebrate the milestone and
acknowledge the accomplishment with staff and stakeholders by June 2023.
4. Workplace Environment
• Scanning & Paper Reduction - Continue implementation of the trusted system in the Contracts,
Purchasing, and Finance divisions while incorporating a fully digital processes to reduce the use
of paper by June 30, 2023.
• Emergency Management - Support countywide emergency preparedness, response, and
recovery efforts by partnering with entities, such as the Water Emergency Response Organization
of Orange County, Orange County Sheriff's Department, and local fire departments, to plan and
continue to conduct two emergency preparedness exercises by June 30, 2023.
• Warehouse Modernization - Implement remote warehousing at Plant No. 2 to allow for the
demolition of the current warehouse facility for construction of new digesters. Relocate the Plant
No. 2 Warehouse staff and inventory to Plant No. 1 by June 2023. Advertise Warehouse Stations
and Demolition at Plant No. 2, FE21-05, for construction bids by March 31, 2023.
• Centralized Training Program - Develop a Centralized Training Program with levels of service
to be implemented by June 30, 2023.
iv
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
Strategic Planning
In November 2021, the Board of Directors adopted a new comprehensive strategic plan to steer OC San's
efforts. The Strategic Plan developed by the Board of Directors and staff defines the strategic initiatives to
be pursued by OC San and provides a basis for long-term financial, capital, and operational planning. In
addition, it provides for long-term continuity of vision as Board and staff members change over the many
years it takes to deliver public works infrastructure. The Strategic Plan is updated every two years to align
policy and execution expectations with OC San's two-year budget cycle.
Driven by our Mission, Vision and Core Values, this Strategic Plan continues OC San's aggressive efforts
to protect the public health of the more than 2.6 million people we serve while protecting the environment
where we live.
The Strategic Plan is broken down into four broad categories with fifteen policy areas that define our
responsibilities and the services we provide. These areas are:
• Business Principles
• Budget Control and Fiscal Discipline
• Asset Management
• Cybersecurity
• Property Management
• Organizational Advocacy and Outreach
• Environmental Stewardship
• Energy Independence
• Climate and Catastrophic Event Resiliency
• Food Waste Treatment
• Water Reuse
• Environmental Water Quality, Stormwater Management and Urban Runoff
• Wastewater Management
• Chemical Sustainability
• Biosolids Management
• Constituents of Emerging Concern
• Workplace Environment
• Resilient Staffing
• Safety and Physical Security
The Strategic Plan is not a radical departure from the current direction, but rather the well-defined iterative
update to the direction of OC San. With the adoption of the Strategic Plan, staff also update the Asset
Management Plan, Capital Improvement Plan, and Financial Plan that are the basis of the two-year budget
adopted by the Board of Directors. The Budget goals and the General Manager's work plan are the
accountability steps that measure achievable progress toward the strategic initiatives listed in the Strategic
Plan.
v
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
SERVICE EFFORTS AND ACCOMPLISHMENTS
The following service efforts and accomplishments were achieved by OC San during the year ended June
30, 2022:
• Epic Award - 2022 California Association of Public Information Officers
• Paul B. Clark Award - 2022 California Association of Public Information Officers
• Platinum Peak Performance Award - 2022 National Association of Clean Water Agencies
• Award of Distinction - 2022 Communicator Award
• American Inhouse Design Award - 2022 Graphic Design USA
• Outstanding Wastewater Treatment Award - 2022 American Society of Civil Engineers
• Honor Award - 2022 American Academy of Environmental Engineers & Scientists
• Large Plant Safety Award - 2022 California Water Environmental Association (CWEA)
• Operator of the Year - Anthony Chang - 2022 California Water Environmental Association
• Excellence in Information Technology Practices - 2021 MISAC
• District Transparency Certificate of Excellence - 2021 Special District Leadership Foundation
• Certificate of Achievement for Excellence in Financial Reporting - 2021 Government Finance
Officers Association
• Distinguished Budget Presentation Award - 2021 Government Finance Officers Association
• Excellence in Procurement - 2021 California Association of Public Procurement Officers
• Large Plant Safety Award - 2021 Santa Ana River Basin Section (SARBS)
• Advocacy Achievement Award - 2021 WateReuse
ACCOUNTING AND BUDGETARY CONTROLS
OC San's accounting records are maintained on the accrual basis. In developing and evaluating OC San's
accounting system, consideration is given to the adequacy of internal accounting controls. Internal
accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial
records for preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be
derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
We believe that OC San's internal accounting controls adequately safeguard assets and provide reasonable
assurance of proper recording of financial transactions.
Each year, OC San's Board of Directors adopts an annual operating plan. A joint works budget is first
prepared that identifies the specific capital projects and operating activities to be undertaken by OC San
during the year. The budgetary level of control, the level at which expenses cannot exceed budget, is
exercised at the individual department level. OC San has adopted a Purchasing Ordinance that establishes
requirements and procedures for the purchase of goods, services, and public work projects.
vi
Table of Contents
6SAN
ORANGE COUNTY SANITATIOM DISTRICT
ACCUMULATED FUNDS AND RESERVES POLICY
The Board of Directors of the Orange County Sanitation District has established the following Accumulated
Funds and Reserves Policy:
Cash Flow Reserve: A cash flow criterion has been established at a level to fund operations, maintenance,
and certificates of participation expenses for the first half of the fiscal year, prior to the receipt of the first
installment of the property tax allocation and the sewer service user fees which are collected as a separate
line item on the property tax bill. The level of this criterion will be established as the sum of an amount equal
to six months operations and maintenance expenses and the total of the annual debt certificate of
participation (COP) service payments due in August each year.
Operating Contingency Reserve: An operating contingency criterion has been established to provide for
non -recurring operating expenditures that were not anticipated when the annual budget was considered
and adopted. The level of this criterion has been established at an amount equal to ten percent of the
current fiscal year's annual operating budget.
Capital Improvement Reserve: A capital improvement criterion has been maintained to fund annual
increments of the capital improvement program (CIP). The target level of this criterion has been
established at one half of the average annual cash outlay of the capital improvement program through the
year 2030. Levels higher and lower than the target can be expected while the long-term financing and
capital improvement programs are being finalized.
Catastrophic Loss or Self -Insurance Reserves: A catastrophic loss or self-insurance criterion has been
maintained for property damage including fire, flood, and earthquake, for general liability and for workers'
compensation. This reserve criterion is intended to work with purchased insurance policies, FEMA, and
state disaster reimbursements. Based on the plant infrastructure replacement value, the level of this
criterion has been set to fund OC San's non -reimbursed costs, estimated to be $100 million.
Capital Replacement/Renewal Reserve Policy: A capital replacement/renewal criterion policy has been
established to provide funding to replace or refurbish the current collection, treatment, and recycling
facilities at the end of their useful economic lives. The current replacement value of these facilities is
estimated to be $11.6 billion. The reserve criterion level had been established at $75 million.
Debt Service Reserves: A debt service criterion policy has been established at ten percent of the
outstanding COP issues. Other debt service reserves are required to be under the control of a trustee by
the provisions of the certificate of participation issues. These funds are not available for the general needs
of OC San and must be maintained at specified levels.
Accumulated Funds exceeding the targets specified by OC San policy will be maintained for Capital
Improvements and Rate Stabilization. These funds will be applied to future years' CIP needs due to the
timing of the actual CIP outlays, in order to maintain rates or to moderate annual fluctuations.
As of June 30, 2022, OC San was in compliance with the Accumulated Funds and Reserves Policy with
designated cash and investments totaling $984 million, and have been earmarked for the following specific
purposes in accordance with OC San's reserve policy:
Designated Cash and Investments
Cash Flow Contingency $134 million
Self -Insurance 100 million
Capital Improvements 659 million
Debt Service Requirements 91 million
Total Designated Cash and Investments $ 984 million
vii
Table of Contents
OC6SAN
ORANGE COUNTY SANITATIOM DISTRICT
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District
for OC San's Annual Comprehensive Financial Report for the year ended June 30, 2021. This was the
twenty-seventh consecutive year that OC San has received this award. In order to be awarded a Certificate
of Achievement, a governmental unit must publish an easily readable and efficiently organized Annual
Comprehensive Financial Report, whose contents conform to program standards. Such reports must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual
Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements
and we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
This report could not have been accomplished without the dedicated services of the Financial Management
Division staff, and I would like to especially express my appreciation to Kim Cardenas, Accounting
Supervisor, and the staff who assisted in its preparation. I would also like to thank OC San's Board of
Directors and the General Manager for their interest and support in conducting the financial operations of
OC San in a responsible and progressive manner.
Respectfully submitted,
Wally Ritchie
Controller
viii
Table of Contents
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Orange County Sanitation District
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
ix
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Board of Directors
As of June 30, 2022
Agency
Active Director
Alternate Director
Cities:
Anaheim
Stephen Faessel
Gloria Ma'ae
Brea
Glenn Parker
Cecilia Hupp
Buena Park
Art Brown
Connor Traut
Cypress
Paulo Morales
Anne Hertz-Mallari
Fountain Valley
Patrick Harper
Ted Bui
Fullerton
Jesus Silva
Nick Dunlap
Garden Grove
Steve Jones
John O'Neill
Huntington Beach
Kim Carr
Dan Kalmick
Irvine
Anthony Kuo
Farrah Khan
La Habra
Rose Espinoza
Steve Simonian
La Palma
Marshall Goodman
Nitesh Patel
Los Alamitos
Ron Bates
Vacant
Newport Beach
Brad Avery
Joy Brenner
Orange
Kim Nichols
Chip Monaco
Placentia
Chad Wanke
Ward Smith
Santa Ana
Johnathan Hernandez
Nelida Mendoza
Seal Beach
Sandra Massa-Lavitt
Schelly Sustarsic
Stanton
David Shawver
Carol Warren
Tustin
Ryan Gallagher
Austin Lumbard
Villa Park
Chad Zimmerman
Robert Collacott
Sanitary Water Districts:
Costa Mesa Sanitary District
Robert Ooten
Art Perry
Midway City Sanitary District
Andrew Nguyen
Mark Nguyen
Irvine Ranch Water District
John Withers
Douglas Reinhart
Yorba Linda Water District
Brooke Jones
Tom Lindsey
County Areas:
Member of the Board
Donald Wagner
Doug Chaffee
of Supervisors
x
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Organizational Chart
As of June 30, 2022
General Counsel
Office
General
Management
Administration
Human Environmental Operations &
Services Administration
Board Services Resources Administrative Services Engineering Maintenance
Administration Administration Administration
Risk Collection Facilities
Public Affairs Management/ Consolidated Resource Protection Planning Operations &
Safety/Security Services Maintenance
Financial Laboratory, Project
Management Monitoring and Management Fleet Services
Compliance
Contracts, Purchasing Plant No. 1
& Materials Design Operations
Management
Information Construction Plant No. 2
Technology Management Operations
Plant No. 1
Maintenance
Plant No. 2
Maintenance
A
Table of Contents
r BUEN)
LA PARK
I LMI
RESS
J LOS
ALAMITOS
01
ncnA LJ WESIMIN
z
HUNTING
BEACI
Pacific
Ocean
ORANGE COUNTY SANITATION DISTRICT
Map of Service Area
As of June 30, 2022
LA
HABRA BREA
FULLER
ANAHEIM
SA TA
ANA
NTA'IN
LLEY
COSTA
MESA
YORBA
LINDA
VILLA
rj— PARK
ORANGE
l . I
TUSTIN
I)
OC San
Service Area
(area enlarged)
1'
Orange County.
California
maps not to scale
Emergency Outtaii
1.5 mile long
6.5 tool diameter
NEWPORT
BEACH
Offshore Pipeline
5 miles long
N
10-foot diameter
0 1 25 2.5 5
� Service area boundary
Miles
Approximately - Map Not to Scale
Sewer pipelines
DISCLAIMER: Map prepared by the Orange
county Sanitation District. This map is intended
Reclamation Plant No. 1 (P1)
for graphical representation only. No level Of
Treatment Plant No. 2 (P2)
accuracy is claimed. Portions of this derived
product contain geographical information
copyrighted by Rand McNally
Pump stations
All Rights Reserved.
Revised December 2019
n Unincorporated Orange County (white areas)
XII
Table of Contents
DavisFarr
CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
Davis Farr LLP
18201 Von Korman Avenue I Suite 1100 1 Irvine, CA 92612
Main: 949.474.2020 1 Fax: 949.263.5520
Independent Auditor's Report
Orange County Sanitation District
Fountain Valley, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Orange County Sanitation District (OC San),
as of and for the year ended June 30, 2022, and the related notes to the financial statements,
which collectively comprise OC San's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the respective financial position of the Orange County Sanitation District, as of June 30, 2022,
and the respective changes in financial position and cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the Financial Statements section of our report. We are required to be independent
of OC San and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described further in Note 1 to the financial statements, during the year ended June 30, 2022,
OC San implemented Governmental Accounting Standards Board (GASB) Statement No. 87.
Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
OC San's management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about OC San's
ability to continue as a going concern for one year after the date that the financial statements
are issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance
Table of Contents
but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 OC San's internal control. Accordingly, no
such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about OC San's ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain
internal control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, Proportionate Share of the Net Pension Liability (Asset)
- OCERS Pension Plan, Schedule of District Contributions - OCERS Pension Plan, Total Pension
Liability - Additional Retiree Benefit Account, Changes in Total Pension Liability - Additional
Retiree Benefit Account, Total OPEB Liability - Post -Employment Medical Benefits Plan, and
Changes in Total OPEB Liability - Post -Employment Medical Benefits Plan be presented to
supplement the basic financial statements. Such information is the responsibility of
management and, although not a 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 an 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.
2
Table of Contents
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise OC San's basic financial statements. The Combining Area Schedule of Net
Position, Combining Area Schedule of Revenues, Expenses, and Change in Net Position, and
Combining Area Schedule of Cash Flows are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The Combining Area Schedule of Net Position, Combining Area Schedule of Revenues, Expenses,
and Change in Net Position, and Combining Area Schedule of Cash Flows are the responsibility
of management and were derived from and relate 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
Combining Area Schedule of Net Position, Combining Area Schedule of Revenues, Expenses,
and Change in Net Position, and Combining Area Schedule of Cash Flows are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive
Financial Report. The other information comprises the Introductory Section, Statistical Section,
and Other Data and Trends but does not include the financial statements and our auditor's
report thereon. Our opinion on the financial statements does not cover the other information,
and we do not express an opinion or any form of assurance thereon. In connection with our
audit of the financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the financial
statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 25, 2022, on our consideration of OC San's 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 solely 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 the effectiveness of 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 OC San's internal control over financial reporting
and compliance.
Irvine, California
October 25, 2022
3
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
This section of the financial statements of the Orange County Sanitation District (OC San) is management's
narrative overview and analysis of the financial activities of OC San for the fiscal year ended June 30, 2022.
The information presented here is to be considered in conjunction with additional information provided
within the letter of transmittal located in the Introductory Section of this report.
Financial Highlights
■ As of June 30, 2022, OC San's assets and deferred outflows of resources exceeded its liabilities and
deferred inflows of resources by $2,815.2 million (net position). Of this amount, $881.5 million
represents unrestricted net position, which may be used to meet OC San's ongoing obligations to
citizens and creditors.
• Total net position increased $104.8 million, or 3.9 percent over the prior year.
• Net capital assets, consisting of non -depreciable capital assets and depreciable capital assets net of
accumulated depreciation, increased $54.2 million, or 2.0 percent over the prior year.
■ Net investment in capital assets increased $85.4 million, or 4.9 percent over the prior year.
■ Restricted net position increased $44.4 million, or 69.7 percent over the prior year.
■ Unrestricted net position decreased $25.0 million, or 2.8 percent under the prior year.
■ Total outstanding bonded debt decreased by $89.8 million, or 9.9 percent from the prior year, to $819.8
million.
Overview of the Basic Financial Statements
OC San operates as a utility enterprise and presents its financial statements using the economic resources
measurement focus and the full accrual basis of accounting. As an enterprise fund, OC San's basic financial
statements are comprised of two components: financial statements and notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
In accordance with the Governmental Accounting Standards Board (GASB) Codification of Governmental
Accounting and Financial Reporting Standards, OC San's financial statements include a Statement of Net
Position; Statement of Revenues, Expenses, and Change in Net Position; and a Statement of Cash Flows.
The Statement of Net Position includes OC San's assets, deferred outflows of resources, liabilities, and
deferred inflows of resources; and provides information about the nature and amounts of investments in
resources (assets) and the obligations to OC San's creditors (liabilities). It also provides the basis for
computing the rate of return, evaluating the capital structure of OC San, and assessing the liquidity and
financial flexibility of OC San.
The Statement of Revenues, Expenses, and Change in Net Position accounts for the current year's
revenues and expenses. This Statement measures the success of OC San's operations over the past year
and can be used to determine OC San's creditworthiness. It also highlights OC San's dependency on
property tax revenues in supplementing user fees and other charges for recovering total cost.
The final required financial statement, the Statement of Cash Flows, reports cash receipts, cash payments,
and net changes in cash resulting from operations, investments, and financial activities of the reporting
period.
rd
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Net Position
As previously noted, net position increased $104.8 million, or 3.9 percent over the net position for
FY 2020-21, to $2,815.2 million in FY 2021-22.
(Dollars in thousands)
June 30,
Percentage
June 30,
2021,
Increase
Increase
2022
as restated
(Decrease)
(Decrease)
Assets
Current and other assets
$ 1,196,213
$ 1,069,922
$ 126,291
11.8%
Net capital assets
2,762,026
2,707,824
54,202
2.0%
Total assets
3,958,239
3,777,746
1805493
4.8%
Deferred outflows
of resources
59,839
75,770
(15,931)
-21.0%
Total assets and
deferred outflows
of resources
4,018,078
3,853,516
164,562
4.3%
Liabilities
Current liabilities
174,119
128,315
45,804
35.7%
Noncurrent liabilities
898,632
957,074
(58,442)
-6.1%
Total liabilities
1,072,751
1,085,389
(12,638)
-1.2%
Deferred inflows
of resources
130,140
57,745
72,395
125.4%
Total liabilities
and deferred inflows
of resources
1,202,891
1,143,134
59,757
5.2%
Net position
Net investment in
capital assets
1,825,490
1,740,102
85,388
4.9%
Restricted for OCERS
pension benefits
108,179
63,748
44,431
69.7%
Unrestricted
881,518
906,532
(25,014)
-2.8%
Total net position
$ 2,815,187
$ 2,710,382
$ 104,805
3.9%
5
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Current and other assets increased $126.3 million, or 11.8 percent, due primarily to net cash provided by
operations of $178.3 million, proceeds from property taxes of $118.8 million, increase in OCERS net
pension asset of $110.1 million, receipt of capital facilities capacity charges of $17.7 million, and interest
received of $11.9 million, offset by capital outlays of $191.9 million, unrealized investment losses of $46.8
million, interest paid of $40.5 million, and bonded debt retirements of $33.9 million.
Net capital assets increased $54.2 million, or 2.0 percent, due mostly to the ongoing capital improvement
program construction in progress additions of $185.0 million and capital equipment of $1.5 million, offset
by depreciation of $130.5 million, $1.0 million of prior capital project expenses that were written off as
expense, and $0.8 million loss on disposal of assets. Included in total capital outlay additions is the
Headquarters Complex with incurred project costs of $35.7 million in FY 2021-22 and a total project budget
of $154.8 million. This project is constructing the new Headquarters Building on the north side of Ellis
Avenue to house administrative, engineering, resource protection, and environmental compliance staff.
Collection system projects include the Rehabilitation of Western Regional Sewers, which incurred outlays
of $9.0 million in FY 2021-22 with a total project budget of $82.0 million through the projected completion
in FY 2026-27. This project is to replace or rehabilitate a portion of the sewers and manholes located in OC
San's northwestern service area.
See page 9 for the Schedule of Capital Assets and listing of other major capital additions for FY 2021-22.
Deferred outflows of resources decreased $15.9 million, or 21.0 percent from the prior year, primarily due
to a $11.2 million decrease in pension deferred outflows attributable to the change in projected and actual
earnings on pension plan investments and changes of actuarial assumptions and other inputs, and a $4.7
million decrease for the difference between carrying amount of the retired debt and the acquisition price of
COP Series.
Deferred inflows of resources increased $72.4 million, or 125.4 percent over the prior year, primarily due to
a $70.9 million increase in pension deferred outflows attributable to the change in projected and actual
earnings on pension plan investments and differences between expected and actual experiences, and a
$1.9 increase in the difference between carrying amount of the retired debt and the acquisition price of COP
Series.
Net investment in capital assets increased $85.4 million, or 4.9 percent over the prior year, primarily as a
result of the net increase in capital assets of $54.2 million coupled with a $31.2 million decrease in related
debt.
Restricted net position increased $44.4 million, or 69.7 percent, due to the increase in amounts restricted
for Orange County Employees Retirement System (OCERS) pension benefits.
Unrestricted net position decreased $25.0 million, or 2.8 percent, due to the overall increase in net position
of $104.8 million, offset by the increase in net investment in capital assets of $85.4 million and the increase
in restricted net position of $44.4 million.
C.1
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Change in Net Position
The change in net position decreased $66.6 million in FY 2021-22, or 38.8 percent under the prior year's
increase in net position.
(Dollars in thousands)
June 30, Percentage
June 30, 2021, Increase Increase
2022 as restated (Decrease) (Decrease)
Revenues:
Operating revenues
Service charges
Permit and inspection fees
Total operating revenues
Non -operating revenues
Property taxes
Investment and interest income (loss)
Contrib. from other governments
Other
Total non -operating revenues 91,691 123,115 (31,424) -25.5%
Total revenues 420,786 459,815 (39,029) -8.5%
Expenses:
Operating expenses other than
depreciation and amortization
Depreciation and amortization
Non -operating expenses
Total expenses
Income before capital
contributions
Capital contributions
Increase in net position
Beginning net position
Ending net position
$ 327,824 $ 335,569 $ (7,745) -2.3%
1,271 1,131 140 12.4%
329,095 336,700 (7,605) -2.3%
119,186
110,245
8,941
8.1 %
(35,335)
1,694
(37,029)
-2185.9%
6,227
4,309
1,918
44.5%
1,613
6,867
(5,254)
-76.5%
156,115
168,018
(11,903)
-7.1%
130,465
116,452
14,013
12.0%
55,484
37,909
17,575
46.4%
342,064
322,379
19,685
6.1 %
78,722
137,436
(58,714)
-42.7%
26,083
33,936
(7,853)
-23.1%
104,805
171,372
(66,567)
-38.8%
2,710,382
2,539,010
171,372
6.7%
$ 2,815,187 $
2,710,382 $
104,805
3.9%
As previously stated, an enterprise fund is used to account for the operations of OC San, which is financed
and operated in a manner similar to private business enterprises. This allows OC San to determine that the
costs (expenses, including depreciation and amortization) of providing wastewater management services
on a continuing basis are financed or recovered primarily through user charges.
Sewer service user fees are evaluated annually based primarily on budget requirements for total operation
and maintenance expenses and capital outlays for providing wastewater management services. Property
tax revenues are dedicated for the payment of debt service.
7
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Sources of Revenue Functional Expenses
June 30, 2022 June 30, 2022
0
-8% 2 ° 8% 9% ■ Collection
9% System
■ User Fees ■ Treatment &
■ Taxes Levied
28% Disposal
■ Depreciation &
Interest Income 36% Amortization
■ Other 41 178% Interest
38% Expense
■ Other
Operating revenues decreased $7.7 million, or 2.3 percent in FY 2021-22 from the prior year, primarily
because of a decrease in service charges to Irvine Ranch Water District (IRWD) of $8.9 million as a result
of the ended solids handling agreement (Note 8), offset by an increase in other sewer user fee revenues of
$1.2 million.
Non -operating revenues decrease of $31.4 million, or 25.5 percent, primarily consists of a $37.0 million or
2185.9 percent decline in investment and interest income/(loss) due to unrealized losses in the investment
portfolios, and a $5.3 million or 76.5 percent decrease in other revenues mainly because of a prior year
reduction of $4.0 million in estimated pollution remediation liability. This decrease is offset by a $8.9 million
or 8.1 percent increase in property taxes revenue attributable to increased home sales and a rise in total
assessed valuation of 4.4 percent over the prior year, and a $1.9 million or 44.5 percent increase in
contributions from other governments due to higher IRWD capital outlay revolving fund requirements.
Operating expenses other than depreciation and amortization decreased $11.9 million, or 7.1 percent from
the prior year. The majority of this decrease is from a reduction in salaries and benefits of $17.8 million or
23.8 percent over the prior year. When including the salaries and benefits capitalized within the capital
improvement program, total operating salaries and benefits costs were $73.2 million, a $17.4 million or 19.2
percent decrease from the prior year total of $90.6 million, reflective of the $20.3 million or 1304.6 percent
decrease in retirement expenses as a result of the change in projected and actual earnings on pension plan
investments and changes of assumptions, somewhat offset by increases of $1.0 million or 1.2 percent in
salaries and wages and $1.8 million or 308.5 percent in retiree insurance. The decrease is offset by
increases of $2.5 million or 10.9 percent in contractual services, $1.8 million or 24.1 percent in other
expenses, and $1.3 million or 12.8 percent in utilities.
Non -operating expenses increased $17.6 million, or 46.4 percent, primarily resulting from an increase of
$22.3 million in contributions to other governments for the integration adjustment of Revenue Area 14's
equity share in OC San's Joint Works Treatment Facilities based on the flows discharged to OC San, offset
by a decrease of $4.8 million or 13.8 percent in interest expense due to debt repayments and refundings.
Capital contributions decreased $7.9 million, or 23.1 percent from the prior year, due to a $8.6 million or
52.4 percent decrease in capital contributions from other governments, reflective of reimbursements from
Orange County Water District (OCWD) for Groundwater Replenishment System costs, offset by an increase
of $0.7 million or 4.2 percent in capital facility capacity charges for connection fees collected from cities and
supplemental capital facilities capacity charges assessed to industrial dischargers.
E-1
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Capital Assets
At June 30, 2022, OC San had a net investment of $2.8 billion in capital assets. This represents a net
increase (including additions and deletions) of $54.2 million, or 2.0 percent over the prior year.
Schedule of Capital Assets
(Net of Depreciation and Amortization)
(Dollars in thousands)
June 30, Percentage
June 30, 2021, Increase Increase
2022 as restated (Decrease) (Decrease)
Land
Construction in progress
Sewage collection facilities
Sewage treatment facilities
Effluent disposal facilities
Solids disposal facilities
General and administrative facilities
Leased sewage collection facilities
Capital assets, net
$ 57,681
$ 57,681 $
-
0.0%
552,128
401,200
150,928
37.6%
451,978
470,729
(18, 751)
-4.0%
1,610,427
1,689,476
(79, 049)
-4.7%
27,362
28,784
(1,422)
-4.9%
248
258
(10)
-3.9%
62,146
59,609
2,537
4.3%
56
87
(31)
-35.6%
$ 2,762,026
$ 2,707,824 $
54,202
2.0%
Major capital asset additions for the current fiscal year included the following:
• $35.7 million Headquarters Complex (P1-128)
• $32.1 million Headworks Rehabilitation at Plant No. 1 (P1-105)
• $23.6 million Ocean Outfall System Rehabilitation (J-117)
• $20.9 million Primary Treatment Rehabilitation at Plant No. 2 (P2-98)
• $ 9.0 million Rehabilitation of Western Regional Sewers (3-64)
• $ 8.9 million TPAD Digester Facility at Plant 2 (P2-128)
• $ 7.2 million Bay Bridge Pump Station Replacement (5-67)
• $ 6.5 million Westminster Blvd Force Main Replacement (3-62)
• $ 5.8 million Headworks Modifications at P2 for GWRS Final Expansion (P2-122)
• $ 5.5 million Newhope-Placentia Trunk Replacement (2-72)
More detailed information about OC San's capital assets is provided in Notes 1 and 3 of the Notes to Basic
Financial Statements.
9
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Management Discussion and Analysis (Unaudited)
June 30, 2022
Debt Administration
At June 30, 2022, OC San had $819.8 million outstanding in bonded debt, a net decrease of $89.8 million,
or 9.9 percent from the prior year. This reduction consisted of the accumulation of principal payments made
in accordance with the schedule of debt service payments and the refunding of $61.6 million of Series
2011A Revenue Refunding Certificates of Participation (COP) and $102.2 million of 2018A Revenue
Refunding Certificate Anticipation Notes with Series 2021A Refunding Revenue Obligations issued in the
amount of $133.5 million in July 2021 and the refunding of $100.6 million of Series 2012A COP and $6.7
million of Series 2012B COP with Series 2022A Wastewater Refunding Revenue Obligations issued in the
amount of $81.6 million in February 2022.
During OC San's most recent debt refundings, Moody's, Standard and Poor's, and Fitch Ratings all
reaffirmed their AAA rating of the Orange County Sanitation District. OC San's long-range financing plan is
designed to maintain this high rating. Over the next ten years, OC San is projecting over $3.1 billion in
future treatment plant and collection system capital improvements. In accordance with OC San's long-term
debt fiscal policy, OC San will restrict long-term borrowing to capital improvements that cannot be financed
from current revenue. No new debt issuances are being proposed to assist with the funding of the system
improvements scheduled over this time period. For more information on long-term debt activities, see
Note 5 of the Notes to Basic Financial Statements.
Economic Factors and Next Year's Budgets and Rates
■ The unemployment rate within the County of Orange is at 2.9 percent in June 2022, a decrease from
the rate of 6.5 percent in June 2021.
■ Inflation for the Los Angeles -Long Beach -Anaheim area increased 8.6 percent in June 2022 over the
prior year June 2021 based on the actual percentage change in the consumer price index according to
the U.S. Department of Labor, Bureau of Labor Statistics.
■ The yield on investments increased from the 0.3 percent earnings rate in FY 2020-21 to 2.6 percent for
FY 2021-22.
All of these factors are considered in preparing OC San's biennium budget.
OC San's user fee schedule was increased by 1.2 percent for FY 2021-22 over the prior year. The Single
Family Residential (SFR) fee, which is the underlying rate for all other user rates, is applicable to OC San's
largest customer base: the SFR fee increased by $4.00, from $339.00 to $343.00. The revenue from sewer
fees is necessary to support OC San's cash flow needs for operating costs, debt service, and capital
improvement outlays. Capital improvement costs are projected to total $3.1 billion over the next 10 years
in order to rehabilitate and upgrade existing facilities and maintain full secondary treatment standards.
Requests for Information
The financial report is designed to provide a general overview of OC San's finances. Questions concerning
any of the information provided in this report or requests for additional financial information should be
addressed to the Financial Management Division, Orange County Sanitation District, 10844 Ellis Avenue,
Fountain Valley, CA 92708-7018.
10
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
BASIC FINANCIAL STATEMENTS
11
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Statement of Net Position
June 30, 2022
Current assets:
Cash and cash equivalents
$ 85,703,593
Investments
885,219,814
Accounts receivable, net of allowance for uncollectibles $319,716
14,041,178
Accrued interest receivable
2,675,681
Connection fees receivable
1,273,182
Property tax receivable
2,148,801
Current portion of lease receivable
358,512
Inventories
9,474,749
Prepaid expenses
2,940,349
Total current assets
1,003,835,859
Noncurrent assets:
Restricted:
Cash and cash equivalents
883,131
Investments
12,229,509
Accrued interest receivable
8,592
Net pension asset - OCERS
178,731,245
Unrestricted:
Non -depreciable capital assets
609,808,168
Depreciable capital assets, net of accumulated depreciation
2,152,218,003
Noncurrent portion of lease receivable
513,899
Other noncurrent assets, net
10,344
Total noncurrent assets
2,954,402,891
Total assets
3,958,238,750
Deferred outflows of resources:
Deferred outflows related to refundings
17,033,814
Deferred outflows related to pensions
42,805,483
Total deferred outflows of resources
59,839,297
Total assets and deferred outflows of resources
4,018,078,047
Current liabilities:
Accounts payable
15,936,120
Accrued expenses
22,153,861
Retentions payable
12,708,958
Interest payable
16,055,500
Due to other governmental agency
54,695,465
Current portion of long-term obligations
52,569,390
Total current liabilities
174,119,294
Noncurrent liabilities:
Noncurrent portion of long-term obligations
876,171,575
Total OPEB liability
2,077,772
Total pension liability - ARBA
20,382,770
Total noncurrent liabilities
898,632,117
Total liabilities
1,072,751,411
Deferred inflows of resources:
Deferred inflows related to refundings
1,951,850
Deferred inflows related to leases
842,461
Deferred inflows related to pensions
127,345,284
Total deferred inflows of resources
130,139,595
Total liabilities and deferred inflows of resources
1,202,891,006
Net position:
Net investment in capital assets
1,825,489,845
Restricted for OCERS pension benefits
108,179,040
Unrestricted
881,518,156
Total net position
$ 2,815,187,041
See Accompanying Notes to Basic Financial Statements.
12
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Statement of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2022
Operating revenues:
Service charges
$ 327,823,935
Permit and inspection fees
1,271,229
Total operating revenues
329,095,164
Operating expenses other than depreciation
and amortization:
Salaries and benefits
57,003,571
Utilities
11,045,546
Supplies, repairs and maintenance
47,082,069
Contractual services
25,114,551
Feasibility studies
6,490,382
Other operating expenses
9,378,574
Total operating expenses other than
depreciation and amortization
156,114,693
Operating income before depreciation
and amortization
172,980,471
Depreciation and amortization
130,465,222
Operating income
42,515,249
Non -operating revenues:
Property taxes
119,185,888
Investment and interest income (loss)
(35,334,636)
Contributions from other governments
6,226,509
Other non -operating revenues
1,612,614
Total non -operating revenues
91,690,375
Non -operating expenses:
Interest
30, 026, 862
Contributions to other governments
23,622,471
Loss on disposal of assets
1,798,103
Other non -operating expenses
36,389
Total non -operating expenses
55,483,825
Income before capital contributions
78,721,799
Capital contributions:
Capital facilities capacity charges
18,282,752
Capital contributions from other governments
7,800,179
Total capital contributions
26,082,931
Change in net position
104,804,730
Total net position - beginning
2,710,382,311
Total net position - ending
$ 2,815,187,041
See Accompanying Notes to Basic Financial Statements.
13
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Statement of Cash Flows
For the Year Ended June 30, 2022
Cash flows from operating activities
Receipts from customers and users
$
363,947,383
Payments to employees
(86,266,769)
Payments to suppliers
(99,373,913)
Net cash provided by operating activities
178,306,701
Cash flows from noncapital financing activities:
Proceeds from property taxes
118,799,909
Receipts for other activities
1,152,996
Net cash provided by noncapital financing activities
119,952,905
Cash flows from capital and related financing activities:
Capital facilities capacity charges
17,667,474
Contributions from other governments
8,206,813
Receipts from lease agreements
440,162
Additions to capital assets
(191,912,464)
Principal payments on debt obligations
(304,965,000)
Interest paid
(40,469,300)
Proceeds from debt issuance
272,127,209
Debt issuance costs
(986,623)
Net cash used in capital and related financing activities
(239,891,729)
Cash flows from investing activities:
Proceeds from sale of investments
491,511,650
Purchases of investments
(572,066,870)
Interest received
11,838,582
Net cash used in investing activities
(68,716,638)
Net decrease in cash and cash equivalents
(10,348,761)
Cash and cash equivalents, beginning of year
96,935,485
Cash and cash equivalents, end of year
$
86,586,724
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss)
$
42,515,249
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation and amortization
130,465,222
Bad debt expense (net recoveries)
(104,744)
(Increase)/decrease in operating assets and deferred outflows:
Accounts receivable
8,923,858
Inventories
(1,089,417)
Prepaid expenses
(405,916)
Net pension asset - OCERS
(110,087,867)
Deferred outflows related to pensions
11,248,696
Increase/(decrease) in operating liabilities and deferred inflows:
Accounts payable
(250,254)
Accrued expenses
1,652,607
Due to other governmental agency
26,033,105
Compensated absences
(205,652)
Claims and judgments
940,400
Total OPEB liability
745,244
Total pension liability - ARBA
(2,937,652)
Deferred inflows related to pensions
70,863,822
Net cash provided by operating activities
$
178,306,701
Noncash activities:
Unrealized gain (loss) on the fair value of investments
$
(46,809,220)
Capital assets acquired through accounts payable
12,286,303
Capital facilities capacity charges acquired
615,278
See Accompanying Notes to Basic Financial Statements.
14
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
(1) Summary of Significant Accounting Policies
Reporting Entity
The Orange County Sanitation District (OC San) is a public agency which owns and operates certain
wastewater facilities in order to provide regional wastewater collection, treatment, and disposal
services to approximately 2.6 million people in the central and northwest portion of the County of
Orange, California. OC San is overseen by a Board comprised of directors appointed by the agencies
and cities which are serviced by OC San.
OC San's service area was originally formed in 1954 pursuant to the County Sanitation District Act
and consisted of seven independent special districts. Two additional districts were formed and
additional service areas were added in 1985 and 1986. These special districts were jointly
responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board
of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the
existing nine special districts into a new, single sanitation district. This action was taken in order to
simplify the governance structures, reduce the size of OC San's Board of Directors, ease
administrative processes, streamline decision -making and consolidate accounting and auditing
processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor
special districts transferred and assigned all of their powers, rights, duties, obligations, functions and
properties to OC San, including all assets, liabilities, and equity.
Effective July 1, 1998, the organization became known as the Orange County Sanitation District.
The boundaries of one of the previous districts, now known as Revenue Area No. 14, have been
maintained separately because their use of OC San's collection, treatment, and disposal system is
funded by the Irvine Ranch Water District (IRWD). The boundaries of the other eight districts have
been consolidated and are collectively referred to as the Consolidated Revenue Area. OC San
utilizes joint operating and capital outlay accounts to pay joint treatment, disposal, and construction
costs. These joint costs are allocated to each revenue area based on gallons of sewage flow. The
supplemental schedules and statements show internal segregations and are not intended to
represent separate funds for presentation as major or non -major funds in the basic financial
statements.
The accompanying financial statements present OC San and its blended component unit, the
Orange County Sanitation District Financing Corporation (Corporation). The Corporation is a legally
separate entity although in substance it is considered to be part of OC San's operations. OC San is
considered to be financially accountable for the Corporation which is governed by a board comprised
entirely of OC San's board members. There is no requirement for separate financial statements of
the Corporation; consequently, separate financial statements for the Corporation are not prepared.
The Corporation had no financial activity during the fiscal year ended June 30, 2022, other than
principal and interest payments on outstanding certificates of participation, revenue obligations, and
notes (see Note 5).
OC San is independent of and overlaps other formal political jurisdictions. There are many
governmental entities, including the County of Orange, that operate within OC San's jurisdiction;
however, financial information for these entities is not included in the accompanying financial
statements in accordance with the Governmental Accounting Standards Board (GASB).
15
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Measurement Focus and Basis of Accounti
OC San operates as an enterprise activity. Enterprise funds account for operations that are financed
and operated in a manner similar to private business enterprises, where the intent of the Board of
Directors is that the costs (expenses, including depreciation and amortization) of providing services
to the general public on a continuing basis be financed or recovered primarily through user charges.
Basis of accounting refers to when revenues and expenses are recognized in the accounts and
reported in the financial statements. Enterprise funds are accounted for on the flow of economic
resources measurement focus and use the accrual basis of accounting, whereby revenues are
recognized when earned and expenses are recognized when incurred, regardless of the timing of
related cash flows.
The accounting policies of OC San conform to accounting principles generally accepted in the United
States of America (GAAP) as applicable to governments. The GASB is the accepted standard -
setting body for establishing governmental accounting and financial reporting principles in the United
States.
Operating Plans
Each year, OC San staff prepares an annual operating plan which is adopted by the Board of
Directors. The annual operating plan is used to serve as a basis for monitoring financial progress,
estimating the levy and collection of taxes, and determining future service charge rates. During the
year, these plans may be amended as circumstances or levels of operation dictate.
Cash and Cash Eauivalents
Investments with original maturities of three months or less when purchased, money market mutual
funds, and external investment pools that can be withdrawn on demand are considered to be cash
equivalents.
Investments
Investments are stated at fair value (the price that would be received to sell an asset in an orderly
transaction between market participants acting in their economic best interest at the measurement
date). Changes in fair value that occur during the fiscal year are reported as part of investment and
interest income. Investment and interest income includes interest earnings and realized and
unrealized gains or losses in fair value. Investment and interest income are recorded as revenues
and receivables when declared and realized gains or losses are recorded when the investment is
sold.
Accounts Receivable
Accounts receivable is reported net of the allowance for uncollectible receivables. Uncollectible
receivables were $319,716 at June 30, 2022. Unbilled sewer services through June 30, 2022 are
recorded as revenue and receivables. Management determines the allowance for uncollectible
receivables by evaluating individual accounts receivable at least one year past due and considering
a customer's financial condition, credit history and current economic conditions. Accounts
receivables are written off when deemed uncollectible. Recoveries of accounts receivables
previously written off are recorded when received.
16
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Inventories
Inventories, which are held for consumption and not resale, are stated at cost on a weighted -average
basis and are expensed when used.
Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid expenses. Prepaid expenses are recorded as expenses when consumed rather than
when purchased.
Capital Assets
Outlays for property, plant, equipment, and construction in progress are recorded in the revenue
area which will use the asset. Such outlays may be for individual revenue area assets or for a
revenue area's share of joint assets.
Capital assets of property, plant, and equipment are defined as assets with an initial, individual cost
of more than $10,000 and an estimated useful life of at least three years. Such assets are recorded
at cost, except for donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement, which are recorded at acquisition value at the time
received. Cost includes labor; materials; outside services; vehicle and equipment usage; other
ancillary costs consisting of direct charges such as engineering, purchasing, supervision, or fringe
benefits.
Depreciation of plant and equipment is provided for over the estimated useful lives of the assets
using the straight-line method in accordance with generally accepted accounting principles. OC San
also considers the guidelines of estimated useful lives as recommended in the State of California
Controller's Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75
years. The following are estimated useful lives for major classes of depreciable assets: Sewage
collection facilities — 50 years, Sewage treatment facilities — 40 years, Sewage disposal facilities —
40 years, General plant and administrative structures — 40 years, and other General plant and
administrative facilities and equipment — 4 to 25 years.
Leased assets are defined as assets with an initial, individual cost of more than $50,000 and an
estimated useful life of at least one year. Such assets are recorded at the present value of the lease
liability. Leased sewage collection facilities are amortized using the straight-line method over the
lease term, which is currently 3 years.
Restricted Assets
Certain assets are classified as restricted because their use is limited by applicable debt covenants
or other legal agreements. Restricted cash and investments are maintained in separate trustee bank
accounts. When both restricted and unrestricted resources are available for use, it is OC San's
policy to use restricted resources first, then unrestricted resources as they are needed, except in
the case of restricted amounts in the Section 115 pension trust, for which OC San will specifically
identify amounts to be utilized to fund OCERS pension benefits.
Amortization
Premiums on wastewater refunding revenue obligations are amortized to interest expense over the
respective terms of the installment obligations based on the effective interest method (Note 5).
17
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position includes a separate section for deferred outflows
of resources. Deferred outflows of resources represent a consumption of net assets that applies to
a future period(s) and so will not be recognized as an outflow of resources (expense) until then. In
addition to liabilities, the statement of net position includes a separate section for deferred inflows of
resources. Deferred inflows of resources represent an acquisition of net assets that applies to a
future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
OC San has three items that qualify for reporting in these categories, related to refundings, pensions,
and leases. For refundings resulting in defeasance of debt, the difference between the reacquisition
price and the net carrying amount of the old debt is reported as a deferred outflow of resources or a
deferred inflow of resources and amortized to interest expense based on the effective interest
method over the remaining life of the old debt or the life of the new debt, whichever is shorter.
Deferred outflows and inflows related to pensions represent differences between estimated and
actual investment earnings, changes in actuarial assumptions, and other pension related changes.
Deferred inflows related to leases is associated with the lease receivable from building lease
agreements, which is recognized as revenue over the life of the lease terms.
Net Position
Net position represents the total of assets and deferred outflows of resources less liabilities and
deferred inflows of resources, and is classified into three categories:
Net Investment in Capital Assets — This amount consists of capital assets, net of accumulated
depreciation/amortization and reduced by the outstanding balances of borrowings or other debt that
are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows
of resources and deferred inflows of resources that are attributable to the acquisition, construction,
or improvement of those assets or related debt are included in this component of net position.
Restricted — This amount consists of restricted assets for which constraints are placed on asset use
either by external parties or by laws or regulations of other governments. OC San's restricted net
position reflects restricted cash and investments and accrued interest in the pension trust, the
OCERS net pension asset, and corresponding deferred outflows and inflows.
Unrestricted — This amount represents the residual of amounts not classified in the other category
and represents the net position available for OC San.
Compensated Absences
OC San's employees, other than operations and maintenance personnel, are granted vacation and
sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation
and sick days earned but unused, respectively. Operations and maintenance personnel accrue
between 80 and 250 personal leave hours per year depending on years of service, which can be
accumulated up to a maximum of 440 hours. All accrued and unused vacation or personal leave is
paid to the employee upon termination or retirement of the employee. Accrued and unused sick
leave is paid to the employee at a percentage rate based on years of service, as stated in the
Memorandum of Understanding for each bargaining group.
Vacation and sick leave benefits and personal days are recorded as an expense and liability when
earned by eligible employees. The distribution between current and long-term portions of the liability
is based on historical trends.
18
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Claims and Judgments
OC San records estimated losses when it is probable that a claim liability has been incurred and
when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for
incurred but unreported claims. The distribution between current and long-term portions of the
liability is based on historical trends.
Pensions
OC San has two defined benefit pension plans for retirees: the plan maintained through and by the
Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account
(ARBA) administered directly by OC San. For purposes of measuring the net pension asset/liability,
deferred outflows of resources related to pensions, deferred inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of OC San's cost
sharing multiple -employer plan with the OCERS plan (Plan) and additions to/deductions from the
Plan's fiduciary net position have been determined on the same basis as they are reported by
OCERS. 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. Deferred
outflow and inflow of resources related to pensions result from changes in the components of the
net pension asset/liability and are applicable to a future reporting period (Note 6).
Property Taxes
The County is permitted by State law (Proposition 13) to levy taxes at one percent of full market
value (at time of purchase) and can increase the assessed value no more than two percent per year.
OC San receives a share of this basic levy, proportionate to what was received in the 1976 to 1978
period.
Property taxes are determined annually and attached as enforceable liens on real property as of
January 1 and are payable in two installments which become delinquent after December 10 and
April 10. The County bills and collects the property taxes and remits them to OC San in installments
during the year. Property tax revenues are recognized when levied. The Board of Directors has
designated property tax revenue to be used for the annual debt service requirements prior to being
used as funding for current operations.
Capital Facilities Capacity Charges
Capital facilities capacity charges represent fees imposed at the time a structure is newly connected
to OC San's system, directly or indirectly, or an existing structure or category of use is increased.
This charge is to pay for OC San facilities in existence at the time the charge is imposed or to pay
for new facilities to be constructed that are of benefit to the property being charged.
Operating and Non -operating Revenues and Expenses
Operating revenues and expenses result from collecting, treating, and disposing of wastewater and
inspection and permitting services. OC San's operating revenues consist of charges to customers
for the services provided. Operating expenses include the cost of providing these services,
administrative expenses, and depreciation and amortization expenses. All revenues and expenses
not meeting these definitions and which are not capital in nature are reported as non -operating
revenues and expenses.
Self -Insurance Plans
For the year ended June 30, 2022, OC San was self -insured for portions of workers' compensation,
property damage, and general liability. The self-insurance portion of the workers' compensation
19
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
exposure is the $1 million deductible per occurrence under the outside excess insurance coverage
to statutory levels. The self-insurance portion of the property damage exposure covering fire and
other perils is the $500,000 per occurrence deductible (for most perils) under the outside excess
property insurance coverage to $1 billion. The self-insurance portion of the property damage
exposure covering flood is the $1 million per occurrence deductible with outside excess property
insurance coverage to $25 million. The self-insurance portion of the property damage exposure
covering earthquake is the 5% per structure, minimum $5 million deductible with outside excess
insurance coverage to $25 million on covered structures. OC San has insured several key structures
against the peril of earthquake; all other structures are completely self -insured. The self-insurance
portion of the boiler & machinery exposure is the deductible ranging from $25,000 to $350,000 under
the outside excess boiler & machinery insurance coverage to $100 million per occurrence combined
limit. The self-insurance portion of the general liability exposure is the $750,000 per occurrence
deductible under the outside excess liability coverage to $40 million per occurrence and aggregate.
The self-insurance portion of the pollution liability exposure is the $250,000 per loss deductible under
the outside pollution liability insurance coverage to $10 million. The main changes to insurance
coverage during the fiscal year ended June 30, 2022, were increases to deductibles on some lines
of coverage due to insurance market conditions and rates.
During the past three fiscal years there have been no settlements in excess of covered amounts.
Claims against OC San are processed by General Counsel or an outside claim administrator. These
claims are charged to claims expense based on estimated or known amounts which will ultimately
be paid. Claims incurred but not yet reported have been considered in determining the accrual for
loss contingencies. Workers' compensation reserves and general liability estimated loss accruals
are actuarially determined. The estimate of the claims liability also includes any amounts for
incremental and nonincremental claim adjustment expenses. OC San management believes that
there are no unrecorded claims as of June 30, 2022 that would materially affect the financial position
of OC San.
Deferred Compensation Plan
OC San offers its employees a deferred compensation plan established in accordance with Internal
Revenue Code Section 457. The plan permits all employees of OC San to defer a portion of their
salary until future years. The amount deferred is not available to employees until termination,
retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the
exclusive benefit of the participants and their beneficiaries. The plan assets are administered by an
outside party and are not subject to the claims of OC San's general creditors. In accordance with
GASB Statement No. 97, the plan's assets and liabilities are not included within OC San's financial
statements.
New Accountina Pronouncements
OC San implemented the following GASB Statements for the year ended June 30, 2022:
• GASB Statement No. 87, Leases, GASB Statement No. 92, Omnibus 2020, and Implementation
Guide 2019-3, Leases. Implementation of this Standard resulted in restating beginning balances
as of July 1, 2021 to recognize a lease liability and leased capital asset of $86,747 and a lease
receivable and deferred inflow of resources of $1,263,608.
• GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —an
amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement
No. 32.
20
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
The following GASB Statements have been issued but are not yet effective for the year ended June
30, 2022. OC San is assessing what financial statement impact, if any, these Statements will have:
• GASB Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment
Arrangements, effective for the fiscal year ending June 30, 2023.
• GASB Statement No. 96, Subscription -Based Information Technology Arrangements, effective
for the fiscal year ending June 30, 2023.
• GASB Statement No. 99, Omnibus 2022, effective for the fiscal year ending June 30, 2023.
• GASB Statement No. 100, Accounting Changes and Error Corrections — an amendment of
GASB Statement No. 62, effective for the fiscal year ending June 30, 2024.
• GASB Statement No. 101, Compensated Absences, effective for the fiscal year ending June 30,
2025.
(2) Cash and Investments
Cash and investments as of June 30, 2022 are classified within the accompanying Statement of Net
Position as follows:
Statement of Net Position:
Current assets, unrestricted:
Cash and cash equivalents
$ 85,703,593
Investments
885,219,814
Subtotal - current, unrestricted
970,923,407
Noncurrent assets, restricted:
Cash and cash equivalents
883,131
Investments
12,229,509
Subtotal - restricted
13,112,640
Total cash and investments
$ 984,036,047
Cash and investments consist of the following as of June 30, 2022:
Cash on hand
$ 3,000
Deposits with financial institutions
4,219,079
Managed portfolio - cash and investments
966,701,328
Subtotal - unrestricted cash and investments
970,923,407
Monies held by trustees:
Fiscal agent - cash and cash equivalents
50,641
Pension trust - cash and investments
13,061,999
Subtotal - restricted cash and investments
13,112,640
Total cash and investments
$ 984,036,047
21
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Investments Authorized by the California Government Code and OC San's Investment Polic
The following table identifies the investment types that are authorized by the California Government
Code and OC San's investment policy. This table and the subsequent tables identify certain
provisions of either the California Government Code or OC San's investment policy (whichever is
more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
Investment Type - Authorized by
the California Government Code
Local Agency Bonds
U.S. Treasury Obligations
California State Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Corporate Medium -Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass -Through Securities/
CMO/Asset-Backed Securities
County Investment Pools
Local Agency Investment Fund (LAIF)
Supranational Obligations
Public Bank Obligations
Maximum
Maximum
Investment
Maximum
Percentage
in a Single
Maturity (1)(3)
of Portfolio (1)
Issuer(1)
5 years
10% (2)
5% (2)
5 years
No limit
No limit
5 years
No limit
No limit
5 years
No limit
20% (2)
180 days
40%
5% (2)
270 days
40%
5% (2)
5 years
30%
5% (2)
5 years
No limit
5% (2)
1 year
20% (2)
5% (2)
90 days (2)
5% (2)
5% (2)
5 years
30%
5% (2)
N/A
20%
10%
N/A
20%
20%
5 years
20%
5% (2)
N/A
15% (2)
15% (2)
N/A
No limit
No limit
5 years
30%
30%
5 years
No limit
5% (2)
Notes
(1) Restrictions are in accordance with the California Government Code unless indicated otherwise.
(2) The restriction is in accordance with OC San's Investment Policy which is more restrictive than the California Government Code.
(3) As allowed by California Government Code Section 53601, the Board of Directors has adopted a policy of a maximum
maturity of 5 years for investments purchased by OC San's external money manager for the long-term investment portfolio.
The duration ofthe long-term investment portfolio can never exceed 60 months. Investments purchased fort he short-term
portfolio are subject to the maturity restrictions noted in this table.
22
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Investments Authorized by Debt Agreements
The investment of debt proceeds held by trustees is governed by provisions of the debt covenant
agreements, rather than the general provisions of the California Government Code or OC San's
investment policy. The following table identifies the investment types that are authorized for
investments held by OC San's debt trustees. This table and the subsequent tables identify certain
provisions of the debt covenant agreements that address interest rate risk, credit risk, and
concentration of credit risk.
Maximum
Maximum
Investment Type - Authorized by
Maximum
Percentage
Investment in a
the Debt Covenant Agreement
Maturity
of Portfolio
Single Issuer
U.S. Treasury Obligations
No Limit
No limit
No limit
U.S. Agency Securities
No Limit
No limit
No limit
State and Local Agency Bonds
No Limit
No limit
No limit
Certificates of Deposit
No Limit
No limit
No limit
Banker's Acceptances
180 days
No limit
No limit
Repurchase Agreements
1 year
No limit
No limit
Investment Agreements
No Limit
No limit
No limit
Forward Purchase Agreements
No Limit
No limit
No limit
Reserve Fund Put Agreements
No Limit
No limit
No limit
Guaranteed Investment Contracts
No Limit
No limit
No limit
Commercial Paper
270 days
No limit
No limit
Money Market Mutual Funds
N/A
No limit
No limit
Local Agency Investment Fund (LAIF)
N/A
No limit
No limit
Investments in Pension Trust
During the fiscal year ended June 30, 2022, OC San established an Internal Revenue Service (IRS)
Section 115 trust to fund OCERS pension benefits. The tax-exempt irrevocable trust assets are to
be used exclusively for payment of OCERS pension liabilities. OC San has restricted cash and
investments held in the trust administered by Public Agency Retirement Services (PARS), with US
Bank as the trustee, and managed by HighMark Capital under guidelines approved by OC San.
OC San has two pension trust portfolios: Moderate and Balanced. Both portfolios are constructed to
control risk through four layers of diversification — asset classes (cash, fixed income, equity),
investment styles (large cap, small cap, international, value, growth), managers, and securities.
Disciplined mutual fund selection and monitoring process helps to drive return potential while
reducing portfolio risk.
The primary goal of the Moderate objective is to provide current income and moderate capital
appreciation. It is expected that dividend and interest income will comprise a significant portion of
total return, although growth through capital appreciation is equally important. The strategic ranges
are as follows: Equity (40% - 60%), Fixed Income (40% — 60 %), and Cash (0% — 20%)
The primary goal of the Balanced objective is to provide growth of principal and income. While
dividend and interest income are important components of the objective's total return, it is expected
that capital appreciation will comprise a larger portion of the total return. The strategic ranges are as
follows: Equity (50% - 70%), Fixed Income (30% — 50 %), and Cash (0% — 20%)
23
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Disclosures Relating to 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 an investment has before maturity, the greater the sensitivity
of its fair value to changes in market interest rates. One of the ways that OC San manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or
coming close to maturity evenly over time, as necessary to provide the cash flow and liquidity needed
for operations.
OC San monitors the interest rate risk inherent in its managed portfolio by measuring the duration
of its portfolio. The duration of monies held for shorter term purposes is recommended by OC San's
Treasurer and is based on OC San's cash flow requirements in meeting current operating and capital
needs. The average duration of monies invested for shorter term purposes may never exceed 180
days. The duration of monies held for longer term purposes is recommended annually by OC San's
Treasurer and is based on OC San's five-year cash flow forecast. The average duration may not
exceed 120 percent nor be less than 80 percent of the recommended duration. The average duration
of monies invested for longer term purposes may never exceed 60 months. There is no stated
maximum maturity for the money market mutual funds. The money market mutual funds for
BlackRock Institutional Fund and First American Government Obligations Fund are daily liquid funds
available on demand.
Following is a table which summarizes OC San's managed portfolio investments by purpose and
type with the duration as of June 30, 2022:
Duration
Duration
Investment Type
Fair Value
(in years)
(in months)
Short -Term Portfolio:
U.S. Treasury Notes
$ 101,119,140
0.374
4.48
Local Agency Investment Fund
71,940,943
0.852
10.22
U.S. Treasury Bills
40,375,825
0.193
2.32
Negotiable Certificates of Deposits
23,353,320
0.369
4.43
Corporate Medium -Term Notes
12,207,447
0.505
6.06
U.S. Agency Securities
4,986,650
0.155
1.86
Money Market Mutual Funds
1,601,161
-
-
Short-term portfolio subtotal
255,584,486
0.479
5.75
Long -Term Portfolio:
U.S. Treasury Notes
220,576,935
2.830
33.97
U.S. Agency Securities*
140,563,670
2.151
25.81
Corporate Medium -Term Notes
179,392,731
2.591
31.09
Asset Backed Securities/CMO/Mortgage Pass -Through*
92,678,024
1.604
19.25
Supranationals
51,217,412
2.791
33.49
U.S. Treasury Inflation -Protected Securities (TIPS)
12,781,600
2.042
24.51
Money Market Mutual Funds
7,939,410
-
-
Negotiable Certificates of Deposits
5,967,060
0.287
3.45
Long-term portfolio subtotal
711,116,842
2.406
28.87
Total managed investment portfolio
$966,701,328
* Includes highly sensitive securities.
24
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
OC San monitors the interest rate risk inherent in its other investments using maturity of the
investments. Following is a table of these investments, all held by trustees, as of June 30, 2022:
12 Months
or Less
Cash equivalents held by fiscal agents:
Money Market Mutual Funds $ 50,641
Cash equivalents held by fiscal agents subtotal 50,641
Cash equivalents and investments held by pension trust:
Money Market Mutual Funds 832,490
Mutual Funds - Equity 6,595,407
Mutual Funds - Fixed Income 5,634,102
Cash equivalents and investments held by pension trust subtotal 13,061,999
Total held by trustees $ 13,112,640
Investments with Fair Values Hiahly Sensitive to Interest Rate Fluctuations
OC San's investments (including investments held by trustees) include the following investments
that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in
the information provided above):
Mortgage -backed securities: These securities are subject to early payment in a period of
declining interest rates. The resulting reduction in expected total cash flows affects the fair
value of these securities, making them highly sensitive to change in interest rates. At fiscal year
end, the fair value of investments in mortgage -backed securities totaled $10,955,259 including
$10,565,365 of mortgage pass -through securities, $323,565 of U.S. agency securities, and
$66,329 of U.S. government backed mortgage pools.
Fair Value of Investments
OC San measures and records its investments using fair value measurement guidelines established
by generally accepted accounting principles. These guidelines recognize a three -tiered fair value
hierarchy, as follows:
Level 1: Quoted prices for identical investments in active markets;
Level 2: Observable inputs other than quoted market prices; and
Level 3: Unobservable inputs.
25
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
At June 30, 2022, OC San had the following fair value measurements:
Investment Type
Investments in Short -Term Portfolio:
U.S. Treasury Notes
U.S. Treasury Bills
Negotiable Certificates of Deposits
Corporate Medium -term Notes
U.S. Agency Securities
Investments in Long -Term Portfolio:
U.S. Treasury Notes
U.S. Agency Securities
Corporate Medium -term Notes
Supranationals
Asset Backed Securities/CMO/Mortgage Pass -Through
Negotiable Certificates of Deposits
U.S. Treasury Inflation Protected Securities (TIPS)
Investments Held By Pension Trust:
Mutual Funds - Equity
Mutual Funds - Fixed Income
Fair Value Hierarchy Totals
Investments Not Subject To Fair Value Hierarchy:
Local Agency Investment Fund (LAIF)
Money Market Mutual Funds (Short -Term Portfolio)
Money Market Mutual Funds (Long -Term Portfolio)
Money Market Mutual Funds (Held by Fiscal Agent)
Money Market Mutual Funds (Held by Pension Trust)
Total Investment Portfolio
Quoted Prices
in Active
Markets for
Identical Assets
Fair Value Level 1
Other
Observable Unobservable
Inputs Inputs
Level Level
$ 101,119,140 $
$ 101,119,140 $
40, 375, 825
40, 375, 825
23,353,320
23,353,320
12,207,447
12,207,447
4,986,650
4,986,650
220, 576, 935
220, 576, 935
140,563,670
140,563,670
179,392,731
179,392,731
51,217,412
51,217,412
92, 678, 024
92, 678, 024
5,967,060
5,967,060
12, 781, 600
12, 781, 600
6,595,407 6,595,407
5,634,102 5,634,102
$ $ 897,449,323 $
71, 940, 943
1,601,161
7,939,410
50,641
❑Q') AOn
y aia,u i,s,yna
US Bank is the custodial bank for all of OC San's investments shown above in the managed portfolio,
except for LAIF. Investments classified as Level 2 are valued using US Bank's fair value hierarchy
matrix based on the asset type classification. The fair value hierarchy level matrix is based on
discussions with (1) pricing vendors, (2) broker/dealers, (3) investment managers, (4) industry
groups, and (5) independent accounting firms.
Disclosures Relatina to Credit Risk
Generally, 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 following table presents the minimum rating as required by the
California Government Code, OC San's investment policy, or debt agreements, and the actual rating
as of year-end for each investment type:
26
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Investment Type and the Lowest Rating Reported at Year End
Fair Value
Investments with no legal minimum rating & no required disclosure:
U.S. Treasury Obligations
$ 374,853,500
U.S. Agency Securities - GNMA
66,329
Subtotal
$ 374,919,829
Investments with no legal minimum rating:
U.S. Agency Securities (other than GNMA):
Rating of AA+ (Standard & Poor's)
140,563,670
Rating of P-1 (Moodys)
4,986,650
Negotiable Certificates of Deposits:
Rating ofA-1 ((Standard & Poor's)
9,462,380
Rating ofP-1 (Moodys)
15,884,840
Rating of F-1 (Fitch)
3,973,160
Local Agency Investment Fund (LAIF):
Not rated
71,940,943
Invested with pension trust:
Money Market Mutual Funds: Rating ofAaa-mf (Moodys)
832,490
Mutual Funds - Equity. Not rated
6,595,407
Mutual Funds - Fixed Income: Not rated
5,634,102
Subtotal
259,873,642
Investments with a legal minimum rating (or its equivalent) ofA:
Corporate Medium -Term Notes:
Rating of AA+ (Standard & Poor's)
6,824,175
Rating ofAa2 (Moodys)
8,390,709
Rating of Aa3 (Moodys)
11,931,609
Rating of Al (Moodys)
29,639,308
Rating ofA+ (Fitch)
8,993,506
Rating ofA2 (Moodys)
37,641,872
Rating ofA(Standard & Poor's)
22,556,639
Rating of A- (Standard & Poor's)*
43,343,472
Rating ofA3 (Moodys)'
17,320,628
Rating of BBB+ (Standard & Poor's)*
4,955,860
Not rated
2,400
Subtotal
191,600,178
Investments with a legal minimum rating (or its equivalent) of AA:
Asset Backed Securities/CMO/Mortgage Pass -Through:
Rating ofAaa (Moodys)
47,879,008
Rating of AAA (Standard & Poor's)
43,740,067
Rating of AA+ (Standard and Poor's)
874,434
Rating of BBB (Standard and Poor's)*
109,346
Rating of B (Standard & Poor's)*
8,840
Supranational Obligations:
Rating ofAaa (Moodys)
51,217,412
Subtotal
143,829,107
Investments with a legal minimum rating (or its equivalent) of AAA:
Money Market Mutual Funds:
Rating ofAaa (Moodys)
9,540,571
Invested with fiscal agents:
Money Market Mutual Funds: Rating of Aaa-mf (Moodys)
50,641
Subtotal
9,591,212
Total
$ 979,813,968
* Investment was in compliance with legal requirements at the time it
was purchased.
27
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Concentration of Credit Risk
Limitations on the amount that OC San is allowed to invest in any one issuer have been identified
previously in the section "Investments Authorized by the California Government Code and OC San's
Investment Policy" and in the section "Investments Authorized by Debt Agreements". OC San follows
whichever guideline is the most restrictive.
As of June 30, 2022, OC San had the following investments representing five percent or more of
total investments:
Name of Issuer Fair Value % of Total
Federal National Mortgage Association (FNMA) $ 58,775,979 6.00%
Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The California Government Code and OC
San's investment policy contain legal requirements that limit the exposure to custodial credit risk for
deposits as follows: a financial institution must secure deposits made by state or local governmental
units by pledging securities in an undivided collateral pool held by a depository regulated understate
law (unless so waived by the governmental unit). The fair value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies.
California law also allows financial institutions to secure deposits by pledging first trust deed
mortgage notes having a value of 150% of the secured public deposits.
Custodial credit risk for investments is the risk that in the event of the failure of the counterparty (e.g.
broker -dealer) to a transaction, a government will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California Government Code
and OC San's investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for investments. As of June 30, 2022, in accordance with OC San's
investment policy, none of OC San's investments were held with a counterparty. All of OC San's
investments were held with an independent third party custodian bank registered in the name of OC
San. OC San uses US Bank as a third party custody and safekeeping service for its investment
securities.
Investment in State Investment Pool
OC San is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of OC San's investment in this pool is reported in the accompanying
financial statements at amounts based upon OC San's pro-rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost basis. Included in LAIF's investment portfolio are mortgage -backed securities,
other asset -backed securities, loans to certain state funds, securities with interest rates that vary
according to changes in rates greater than a one -for -one basis, and structured notes. The amounts
invested in LAIF are recorded as cash and cash equivalents at June 30, 2022.
28
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
(3) Capital Assets
Capital asset activity for the year ended June 30, 2022 is as follows:
Beginning
Balance at
Ending
July 1, 2021,
Additions /
Deletions /
Balance at
as restated
Transfers
Transfers
June 30, 2022
Capital assets not depreciated:
Cost:
Land
$ 57,680,623
$ -
$ -
$ 57,680,623
Construction in progress
401,200,044
184,959,868
(34,032,367)
552,127,545
Total nondepreciable assets
458,880,667
184,959,868
(34,032,367)
609,808,168
Depreciable capital assets:
Cost:
Sewage collection facilities
897,488,748
3,350,675
-
900,839,423
Sewage treatment facilities
2,842,786,854
18,024,088
(34,168,036)
2,826,642,906
Effluent disposal facilities
96,972,016
-
-
96,972,016
Solids disposal facilities
3,463,236
-
-
3,463,236
General and administrative facilities
248,712,229
13,131,197
(450,099)
261,393,327
Leased sewage collection facilities
86,747
-
-
86,747
Excess purchase price over book
value on acquired assets
19,979,000
-
-
19,979,000
Subtotal
4,109,488,830
34,505,960
(34,618,135)
4,109,376,655
Accumulated depreciation:
Sewage collection facilities
(426,759,812)
(22,101,671)
-
(448,861,483)
Sewage treatment facilities
(1,153,310,761)
(96,324,057)
33,419,565
(1,216,215,253)
Effluent disposal facilities
(68,188,450)
(1,421,962)
-
(69,610,412)
Solids disposal facilities
(3,204,845)
(9,718)
-
(3,214,563)
General and administrative facilities
(189,102,641)
(10,577,197)
432,514
(199,247,324)
Leased sewage collection facilities
-
(30,617)
-
(30,617)
Excess purchase price over book
value on acquired assets
(19,979,000)
-
-
(19,979,000)
Subtotal
(1,860,545,509)
(130,465,222)
33,852,079
(1,957,158,652)
Net depreciable assets
2,248,943,321
(95,959,262)
(766,056)
2,152,218,003
Net capital assets
$2,707,823,988
$ 89,000,606
$ (34,798,423)
$2,762,026,171
For the fiscal year ended June 30, 2022, capital asset additions of $34.5 million in depreciable capital assets are $0.5
million more than the $34.0 million transferred from Construction in Progress due to $1.5 million of capital equipment
purchases, partially offset b y $1.0 million of prior capital project expenses that were written off as expense. The beginning
balance at July 1, 2021 was restated for leased sewage collection facilities due to GASB 87 implementation.
29
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
4) Lease Receivable
OC San is a lessor in three noncancellable leases for building office space. The lessees are required
to make fixed monthly payments ranging from $8,196 to $16,367 per month. OC San recognized
$421,147 in lease revenue and $48,965 in interest revenue during the current fiscal year related to
these agreements. As of June 30, 2022, the lease receivable is $872,411 and deferred inflows of
resources is $842,461.
(5) Long -Term Liabilities
The following is a summary of the changes in long-term liabilities for the year ended June 30, 2022:
Beginning
Balance, July 1,
Ending Balance,
Due w ithin
Long-term
as restated
Additions
Deletions
June 30
one year
amount
Compensated absences
$ 10,512,315
$ 9,905,917
$ (10,111,569)
$ 10,306,663
$ 8,592,057
$ 1,714,606
Claims and judgments
4,332,897
3,282,705
(2,342,305)
5,273,297
406,360
4,866,937
Lease liability
86,747
-
(28,589)
58,158
30,789
27,369
Certificates of participation
/ revenue obligations
909,620,000
215,130,000
(304,965,000)
819,785,000
30,035,000
789,750,000
Unamortized premium
53,495,534
56,997,209
(17,174,896)
93,317,847
13,505,184
79,812,663
Totals
$ 978,047,493
$285,315,831
$ (334,622,359)
$928,740,965
$52,569,390
$876,171,575
Compensated Absences
OC San's policies related to compensated absences are described in Note 1. OC San's liability at
June 30, 2022 is $10,306,663 with an estimated $8,592,057 to be paid or used within the next fiscal
year.
Claims and Judgments Payable
OC San is self -insured in a number of areas as described in Note 1. The following is a summary of
the change in claims and judgments payable for the years ended June 30, 2022 and 2021:
Claims and judgments payable at July 1
Claims incurred during the fiscal year
Changes in estimates for claims of prior years
Payments on claims during the fiscal year
Claims and judgments payable at June 30
Less: current portion
9n91-99 9n9n-91
$ 4, 332, 897
$ 3, 740, 721
3,103, 355
895,011
179,350
250,807
(2,342,305)
(553,642)
5,273,297
4,332,897
(406 360)
(448 800)
Total long-term claims and judgments payable $4,866,937 $3,884,097
30
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Lease Liability
On April 13, 2021, OC San entered into a three-year lease agreement as lessee for property access
used to operate a chemical dosing site as part of OC San's sewer collection facilities. Required
monthly payments range from $2,680 to $2,800 per month. OC San's lease liability at June 30, 2022
is $58,158. The future principal and interest lease payments as of June 30, 2022 are as follows:
Year Ending June 30, Principal Interest Total
2023 $ 30,789 $ 2,211 $ 33,000
2024 27,369 631 28,000
Total $ 58,158 $ 2,842 $ 61,000
Certificates of Participation / Revenue Obligations
OC San issued certificates of participation and revenue obligations in order to finance construction
of the treatment facilities. Each issuance represents a direct and proportionate interest in the semi-
annual interest payments. Installment payments for the issues are payable from any source of
lawfully available funds of OC San. Certificates of participation and revenue obligations at June 30,
2022 are summarized as follows:
Amount
2010A wastewater revenue obligations
$ 80,000,000
2010C wastewater revenue obligations
157,000,000
2014A wastewater refunding revenue obligations
47,835,000
2015A wastewater refunding revenue obligations
127,510,000
2016A wastewater refunding revenue obligations
131,965,000
2017A wastewater refunding revenue obligations
65,815,000
2021A wastewater refunding revenue obligations
128,040,000
2022A wastewater refunding revenue obligations
81,620,000
Total certificates of participation / revenue obligations
$ 819,785,000
Outstanding Certificates of Participation and Revenue Obligations
All of the outstanding debt of OC San is senior lien debt with rate covenants that require a minimum
coverage ratio of 1.25. The minimum coverage ratio is the ratio of net annual revenues available for
debt service requirements to total annual debt service requirements. As of June 30, 2022, the
coverage ratio for senior lien debt was 3.56.
May 2010 Wastewater Revenue Obligations, Series 2010A
On May 18, 2010, OC San completed the sale of $80,000,000 of wastewater revenue obligations
under the federally taxable Build America Bonds program. The obligations were issued to
finance and reimburse OC San for the acquisition, construction, and installation of additional
improvements made to the wastewater system. The stated interest rate on the obligations is
fixed and will range from 5.56 percent to 5.58 percent, however, in accordance with their
designation as Build America Bonds, OC San expected to receive a cash subsidy from the
United States Treasury equal to 35 percent of the interest payable with respect to these revenue
31
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
obligations, resulting in lower net costs. On March 1, 2013, the federal government implemented
certain automatic spending cuts known as the sequester. As a result of the sequester, federal
subsidy payments on Build America Bonds have been reduced annually from a high of 8.7
percent for the federal fiscal year end September 30, 2013 to a low of 5.7 percent for the federal
fiscal year end September 30, 2022. Annual principal payments are due on February 1,
beginning February 1, 2034 through February 1, 2040.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
December 2010 Wastewater Revenue Obligations, Series 2010C
On December 8, 2010, OC San completed the sale of $157,000,000 of wastewater revenue
obligations under the federally taxable Build America Bonds program. The obligations were
issued to finance and reimburse OC San for the acquisition, construction, and installation of
additional improvements made to the wastewater system. The stated interest rate on the
obligations is fixed and will range from 6.35 percent to 6.40 percent, however, in accordance
with their designation as Build America Bonds, OC San expected to receive a cash subsidy from
the United States Treasury equal to 35 percent of the interest payable with respect to these
revenue obligations, resulting in lower net costs. Similar to 2010 C Series A certificates of
participation, the sequester also reduced the federal subsidy on these Build America Bonds
from a high of 8.7 percent for the federal fiscal year end September 30, 2013 to a low of 5.7
percent for the federal fiscal year end September 30, 2022. Annual principal payments are due
on February 1, beginning February 1, 2031 through February 1, 2044.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
August 2014 Wastewater Refunding Revenue Obligations, Series 2014A
On August 7, 2014, OC San completed the sale of $85,090,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund $93,930,000 of the
outstanding principal balance of the 2007 Series B certificates of participation. The stated
interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on
February 1, beginning February 1, 2018 through February 1, 2027.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
February 2015 Wastewater Refunding Revenue Obligations, Series 2015A
On February 12, 2015, OC San completed the sale of $127,510,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund $152,990,000 of the
outstanding principal balance of the 2007 Series B certificates of participation. The stated
interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on
February 1, beginning February 1, 2028 through February 1, 2037.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
March 2016 Wastewater Refunding Revenue Obligations, Series 2016A
On March 30, 2016, OC San completed the sale of $145,880,000 of wastewater refunding
revenue obligations. The obligations were issued to partially refund $162,780,000 of the
outstanding principal balance of the 2009 Series A certificates of participation. The stated
interest rate on the obligations is fixed and will range from 4 to 5 percent. Annual principal
payments are due on February 1, beginning February 1, 2020 through February 1, 2039.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
32
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
February 2017 Wastewater Refunding Revenue Obligations, Series 2017A
On February 1, 2017, OC San completed the sale of $66,370,000 of wastewater refunding
revenue obligations. The obligations were issued to refund the $91,620,000 outstanding
principal balance of the 2007 Series A certificates of participation. The stated interest rate on
the obligations is fixed at 5 percent. Annual principal payments are due on February 1, beginning
February 1, 2021 through February 1, 2030.
The trust agreement for the revenue obligations does not require the establishment of a reserve.
2021 Wastewater Refunding Revenue Obligations, Series 2021A
On July 29, 2021, OC San completed the sale of $133,510,000 of wastewater refunding revenue
obligations. The obligations were issued to refund the $61,575,000 outstanding principal
balance of the 2011 Series A certificates of participation and to refund the $102,200,000
outstanding principal balance of the 2018 Series A revenue refunding certificate anticipation
notes. The stated interest rate on the obligations is fixed at 5 percent. Annual principal payments
are due on February 1, beginning February 1, 2022 through February 1, 2036.
The aggregate difference in debt service between the refunding debt and the refunded debt is
a positive amount of approximately $6,137,682. The total future payments for the new debt
provide a net present value gain of approximately $7,544,537 to refund the old debt.
The trust agreement for the certificates does not require the establishment of a reserve.
2022 Wastewater Refunding Revenue Obligations, Series 2022A
On February 1, 2022, OC San completed the sale of $81,620,000 of wastewater refunding
revenue obligations. The obligations were issued to refund the $100,645,000 outstanding
principal balance of the 2012 Series A certificates of participation and to refund the $6,670,000
outstanding principal balance of the 2012 Series B certificates of participation. The stated
interest rate on the obligations is fixed at 5 percent. Annual principal payments are due on
February 1, beginning February 1, 2031 through February 1, 2033.
The aggregate difference in debt service between the refunding debt and the refunded debt is
a positive amount of approximately $20,044,755. The total future payments for the new debt
provide a net present value gain of approximately $20,710,478 to refund the old debt.
The trust agreement for the certificates does not require the establishment of a reserve.
33
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Annual Amortization Reauirements
The annual requirements to amortize all debt related to certificates of participation and revenue
obligations as of June 30, 2022 are as follows:
Year Ending June 30,
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2047
Total
Pension Benefits
Principal
$ 30, 035, 000
31,580,000
33,120, 000
34,830,000
36,445, 000
235, 035, 000
281, 205, 000
125, 260, 000
12.275. 000
Estimated Interest Total
$ 38, 243, 969
36,742,219
35,163, 219
33,507,219
31,765,719
127, 546,133
64, 265, 071
15, 440, 206
613,809
$ 68, 278, 969
68, 322, 219
68, 283, 219
68, 337, 219
68, 210, 719
362, 581,133
345, 470, 071
140, 700, 206
12, 888, 809
$ 819, 785, 000 $ 383, 287, 564 $ 1, 203, 072, 564
OC San has two defined benefit pension plans for retirees: the plan maintained through and by the
Orange County Employees Retirement System (OCERS) and the Additional Retiree Benefit Account
(ARBA) administered directly by OC San.
A summary of pension amounts for OC San's plans at June 30, 2022 is presented below:
OCERS
ARBA
Total
Net pension asset - OCERS
$ 178,731,245
$ -
$ 178,731,245
Deferred outflows - pensions
38,925,439
3,880,044
42,805,483
Total pension liability - ARBA
-
20,382,770
20,382,770
Deferred inflows - pensions
122,548,235
4,797,049
127,345,284
Pension expense (credit)
(21,874,488)
1,486,708
(20,387,780)
A. Orange County Employees Retirement System (OCERS)
Plan Description: All qualified permanent and probationary employees are eligible to participate in
OC San's Employee Pension Plan (Plan), which is a cost -sharing multiple employer defined benefit
pension plan administered by the Orange County Employees Retirement System (OCERS). OCERS
was established in 1945 under the provisions of the County Employees Retirement Law of 1937
(CERL). The Plan operates under the provisions of the CERL, the California Public Employees'
Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by
OCERS' Board of Retirement. The Plan's authority to establish and amend the benefit terms are set
34
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
by the CERL and PEPRA and may be amended by the California State Legislature. The Plan is a
tax qualified plan under Section 401(a) of the Internal Revenue Code.
Benefits Provided: OCERS provides service retirement, disability, death and survivor benefits to
plan members who may be public employees or beneficiaries. The CERL and PEPRA establish
benefit terms. Benefits are based on years of credited service equal to one year of full-time
employment. Members of plans B and H with ten years of service credit are entitled to receive a
retirement allowance beginning at age 50; members of plan U with 5 years of service are eligible to
receive a retirement allowance at age 52. Members attaining age 70 are eligible to retire regardless
of credited service.
Benefits are determined by plan formula, age, years of service and final average salary (FAS) as
follows:
Plan H Plan B Plan U
After 9/21/79
Prof/Sup: After 10/1/10
Hire Date
Prof/Sup*: Before 10/1/10
OCEA: After 8/1/11
On or after 1/1/2013
OCEA*: Before 8/1/11
501: After 7/1/11
501*: Before 7/1/11
All: Before 1/1/2013
Final Average
Compensation (FAS)
Highest 36 months
Highest 36 months
Highest 36 months
Normal Retirement Age
Age 55
Age 57.5
Age 67
Service Requirement
Age 70, any years
Age 70, any years
Age 70, any years
Eligibility
Age 50, 10 years
Age 50, 10 years
Age 52, 5 years
Benefit percent per year
2 5% per year of FAS for
1.667% per year of FAS for
2.5% per year of FAS for
of service for normal
every year of service credit
every year of service credit
every year of service credit
retirement age
Benefit Adjustments
Reduced before age 55
Reduced before age 57.5
Reduced before age 67
Public Employees Pension
FAS Limitation
Internal Revenue Code
Internal Revenue Code
Reform Act (PEPRA): 120%
Section 401(a)(17)
Section 401(a)(17)
of Social Security wage base
per year
* Prof/Sup: Professional and Supervisor employee groups, bargaining unit SPMG.
* OCEA Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA
* 501: Operations and Maintenance employee groups, bargaining unit International Union of Operating Engineers Local 501.
A cost of living adjustment is provided to benefit recipients based on changes in the Consumer Price
Index (CPI) up to a maximum of 3% per year. Any increase greater than 3% is banked and may be
used in years when the CPI is less than 3%. The increase is established and approved annually by
the Board of Retirement.
The Plan also provides disability and death benefits to eligible members and their beneficiaries,
respectively. For retirees, the death benefit is determined by the retirement benefit option chosen.
For all other members, the beneficiary is entitled to benefits based on the member's years of service
and whether or not the cause of death is service related.
35
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
At the December 31, 2021 measurement date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 564
Inactive employees entitled to but not yet receiving benefits 135
Active employees
Total
620
1,319
Contributions: Participating employers and active members are required by statute to contribute a
percentage of covered salary to the Plan. CERL requires that the employer contribution rates for all
public employers be determined on an annual basis by the actuary and be effective on the July 1
following notice of a change in rate. Funding contributions are determined annually on an actuarial
basis as of December 31 by OCERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability.
Contributions to the Plan from OC San were $8,537,920 for the year ended June 30, 2022.
Contribution rates in effect for the fiscal year ended June 30, 2022 are as follows:
Plan H Plan B Plan U
Employer Contribution Rate, 7/1/21 - 6/30/22
13.22%
11.23%
9.88%
Employee Contribution Rate, 7/1/21 - 6/30/22 (2)
6.69-12.80% (1)
7.52-13.02%
7.16-14.24%
Paid by Employer for Employee
3.50%
0.00%
0.00%
(1) Net of employer paid portion of 3.5%.
(2) Employee rates are determined bythe age of entry into the retirement system.
For the year ended June 30, 2022, the contributions and average employer's contribution rate as a
percentage of covered payroll were as follows:
Average
Employee (Paid
Employer
Employer
by Employer)
Contribution
Plans
Contributions
Contributions
Rate (%)
Plan H
4,521,215
1,182,559
7.70%
Plan B
792,177
-
1.07%
Plan U
3,224,528
-
4.35%
Total
$ 8,537,920
$ 1,182,559
Pension Assets/Liabilities: As of June 30, 2022, OC San reported a net pension asset of
$178,731,245 for its proportionate share of OCERS' net pension liability. The net pension asset was
measured as of December 31, 2021 and the total pension asset used to calculate the net pension
asset was determined by an actuarial valuation as of that date. OC San's proportion of the net
pension asset was based on a projection of OC San's long-term share of contributions to the pension
plan relative to the projected contribution of all participating employers, actuarially determined.
36
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
At December 31, 2021, OC San's proportion of the net pension liability was negative (8.718%), which
was a decrease of 7.089% from its proportion measured as of December 31, 2020. The change in
OC San's proportion of the net pension liability during the fiscal year ended June 30, 2022 was
caused by contributions and projections noted above.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions: For the year
ended June 30, 2022, OC San recognized pension expense of negative ($21,874,488) for its
proportionate share of the pension expense. At June 30, 2022 OC San reported its share of deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Difference between expected and actual experience
Net difference between projected and actual investment
earnings on pension plan investments
Changes of assumptions (1)
Employer contributions paid to OCERS subsequent to
the measurement date
Total
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 15, 066,130 $ 18, 908, 781
103,639,454
11, 884, 767
11,974,542 -
38, 925, 439 $ 122, 548, 235
(1) The monetaryeffects of changes in actuarial assumptions and method totals $11,884,767 for
deferred outflows and $0 for deferred inflows of resources. These changes include:
• adjustments to the mortality tables,
• retirement assumptions for deferred vested members (age at retirement59, increase of4.00%
in reciprocity, and an increase in compensation increases),
• % in the rate of marriage for male and female members at retirement or pre -retirement death,
• an increase in the Consumer Price Indexof2.75% peryear, maximum increase is 3%,
• and a slight increase of .50% in salaries per year.
Detail for these changes is available in the Segal Actuarial Valuation for December 31, 2021, Section 3.
This report is available on the OCERS website at www.ocers.org.
The $11,974,542 reported as deferred outflows of resources related to pensions resulting from OC
San's contributions to OCERS subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to OCERS pensions will be
recognized in pension expense as follows:
Year Ending June 30,
Amount
2023
$ (17,995,653)
2024
(34,332,197)
2025
(24,155, 775)
2026
(17,294,791)
2027
(1,818,922)
Total
$ (95,597,338)
37
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Actuarial Assumptions and Methods: The total pension liability in the December 31, 2021 actuarial
valuation was determined using the following actuarial assumptions, applied to all periods included
in the measurement:
Investment rate of return 7.00% of net pension plan investment expenses, including inflation
Discount rate 7.00%
Inflation rate 2.50%
Projected salary increases 4.00% to 11.00%
Cost of living adjustment 2.75% of retirement income
OCERS Economic and Demographic Assumptions: On August 17, 2020, the OCERS Board adopted
the following significant changes to the economic and demographic actuarial assumptions, used to
establish retirement contribution rates effective July 1, 2021:
• Reduced the assumed rate of price inflation from 2.75% to 2.50%.
• Adopted the use of Public Retirement Plans Mortality tables (PUB-2010) published by the
Society of Actuaries.
Additionally, the OCERS Board adopted a three-year phase -in of the impact to the contribution rates
associated with the Unfunded Actuarially Accrued Liability. The cumulative effect of these changes
will have the impact of increasing contribution rates for members and plan sponsors.
The mortality assumptions used in the total pension liability at December 31, 2021 were based on
the Amount -Weighted Above -Median Mortality Tables (adjusted for OCERS experience), projected
generationally with the two-dimensional mortality improvement scale MP-2019, and adjusted
separately for healthy and disabled members. The basis for determining the mortality assumptions
used were based on the results of the actuarial experience study for the period January 1, 2017
through December 31, 2019.
Further details of the experience study can be found in the OCERS Annual Comprehensive Financial
Report, available on their website at www.ocers.org.
Long -Term Expected Real Rate of Return: The long-term expected rate of return on pension plan
investments was determined using a building-block method in which expected future real rates of
return (expected returns, net of inflation) are developed for each major asset class. These returns
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation and
deducting expected investment expenses.
38
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
The target allocation and projected arithmetic real rates of return for each major asset class, after
deducting inflation, but before investment expenses, used in the derivation of the long-term expected
investment rate of return assumption are summarized in the following table for the calendar year
ended December 31, 2021:
Asset Class
Target
Allocation
Long -Term Expected Real
Rate of Return (Arithmetic)
Large Cap Equity
23.10%
5.43%
Small Cap Equity
1.90%
6.21 %
International Developed Equity
13.00%
6.67%
Emerging Markets Equity
9.00%
8.58%
Core Bonds
9.00%
1.10%
High Yield Bonds
1.50%
2.91 %
TIPS
2.00%
0.65%
Emerging Market Debt
2.00%
3.25%
Corporate Credit
1.00%
0.53%
Long Duration Fixed Income
2.50%
1.44%
Real Estate
3.01 %
4.42%
Private Equity
13.00%
9.41 %
Value Added Real Estate
3.01%
7.42%
Opportunistic Real Estate
0.98%
10.18%
Energy
2.00%
9.68%
Infrastructure (Core Private)
1.50%
5.08%
Infrastructure (Non -Core Private)
1.50%
8.92%
CTA - Trend Following
2.50%
2.38%
Global Macro
2.50%
2.13%
Private Credit
2.50%
5.47%
Alternative Risk Premia
2.50%
2.50%
Total
100.00%
Discount Rate: The discount rate used to measure the total pension liability was 7.00% for the year
ended December 31, 2021. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and that
employer contributions will be made at rates equal to the actuarially determined contribution rates.
For this purpose, only employer contributions that are intended to fund benefits for current plan
members and their beneficiaries are included. Projected employer contributions that are intended to
fund the service costs for future plan members and their beneficiaries, as well as projected
contributions from future plan members, are not included. Based on those assumptions, the pension
plan's fiduciary net position was projected to be available to make all projected future benefit
payments for current plan members. 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 as of December 31, 2021.
Sensitivitv of the Proportionate Share of Net Pension Liabilitv to Chanaes in the Discount Rate: The
following table represents OC San's proportionate share of the net pension liability calculated using
the discount rate of 7.00%, as well as what OC San's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1
percentage point higher (8.00%) than the current rate:
1 % Decrease Current Discount Rate 1 % Increase
Net Pension Asset (Liability) (6.00%) (7.00%) (8.00%)
December 31, 2021 $ 63,706,305 $ 178,731,245 $ 272,487,228
39
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Pension Plan Fiduciary Net Position: Detailed information about OCERS' fiduciary net position is
available in a separately issued OCERS Annual Comprehensive Financial Report. That report may
be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92708 or at their web
site (www.ocers.org).
B. Additional Retiree Benefit Account (ARBA)
Plan Description: The OC San ARBA plan is a single -employer defined benefit plan which was
administered by OCERS until February 29, 2008, when OC San began direct administration. This
benefit was established by the OC San Board of Directors on October 25, 1992. It provides a monthly
payment to retirees towards the premium costs of health insurance for the retiree and eligible
dependents. The retiree is not required to use this amount for health insurance premium or to remain
on the OC San medical plan. The plan is a funded on a pay-as-you-go plan from general funds and
is administered by OC San. Stand-alone financial statements are not issued for the plan.
Benefits Provided: Employees who retire receive $10 per month for every year of service up to a
maximum of 25 years, or $250 per month. This amount is independent of salary and is fixed at
retirement. Because OC San cannot ensure the use of the benefit for payment of eligible health
insurance expenses, the benefit is taxable to the retiree. Survivor benefits are provided in the event
that a retiree pre-deceases his/her spouse. For retirees hired prior to July 1, 1988, OC San provides
health insurance coverage for 2'/2 months per year of service (see Note 7 — Other Post -Employment
Benefits). ARBA benefits begin immediately after this benefit ends. For those hired on or after July
1, 1988, ARBA benefits begin immediately upon retirement and continue for life. Employees hired
into the OCEA bargaining group after August 1, 2011 are ineligible for this benefit.
Benefits are determined by hire date, bargaining unit and years of service as follows:
Hire date
All: Prior to 7/1/88
All: After 7/1/88
OCEA*: Before 8/1/11
Benefit amount per
$10 per month x years of service
$10 per month x years of service
year of service for
up to a maximum of 25 years
up to a maximum of 25 years
normal retirement age
Service requirement
Age 50 or over with 10 or more years
Age 50 or over with 10 or more years
eligibility
Any age with 30 or more years
Any age with 30 or more years
Age 70 or over, any years
Age 70 or over, any years
Benefit payments
Monthly for life
Monthly for life
Benefit schedule
Immediately after retiree health
Immediately upon retirement
insurance coverage ends
* OCEA: Administrative, Clerical, Engineering, and Technical Services employee groups, bargaining unit OCEA.
No cost of living adjustment is provided to benefit recipients.
40
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
At the July 1, 2021 actuarial valuation date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits 410
Active employees 559
Total 969
Contributions: There are no employee contributions for this plan; OC San covers 100% of the cost.
OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San
were $1,039,040 for the year ended June 30, 2022.
Pension Liabilities: As of June 30, 2022, OC San reported a total pension liability of $20,382,770
for its ARBA plan. The total pension liability was determined by an actuarial valuation as of July 1,
2021. OC San funds benefits on a pay-as-you-go basis and elected not to pre -fund its pension
obligation. As a result, there are no plan assets and the total pension liability is equal to the net
pension liability. Standard actuarial update procedures were used to project/discount from July 1,
2021 to the measurement date of June 30, 2022.
The actuarial valuation performed as of July 1, 2021, used the entry age, level percent of pay cost
method. This method represents the present value of all benefits accrued through the valuation date
assuming that each employee's liability is expensed from hire date until retirement date as a level
percentage of pay.
The following table shows the changes in the total pension liability:
Beginning balance at July 1, 2021
Changes in the year:
Service cost
Interest on total pension liability
Difference between expected and actual experience
Changes of assumptions
Benefit payments
Net changes
Ending balance at June 30, 2022
Total Pension Liability
Increase (Decrease)
$ 23,320,422
835,711
496,575
898,171
(4,129, 069)
(1,039,040)
(2,937,652)
$ 20, 382, 770
41
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension: For the year
ended June 30, 2022, OC San recognized pension expense of $1,486,708 for its ARBA plan. At
June 30, 2022, OC San reported its share of deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Difference between expected and actual experience
Changes of assumptions (1)
Total
of Resources of Resources
$ 1,220,088 $ 1,293,597
2,659,956 3,503,452
$ 3,880,044 $ 4,797,049
(1) The monetary effects of changes in actuarial assumptions and method totals $2,659,956 for deferred outflows
and $3,503,452 for deferred inflows of resources. These changes include passage of time, a change in the
discount rate from 1.92% to 3.69%, change in actuarial system, census and other losses.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
ARBA pensions will be recognized in pension expense as follows:
Year Ending June 30,
Amount
2023
$ 154,422
2024
39,918
2025
(168,334)
2026
(307,005)
2027
(342, 288)
2028
(293,718)
Total
$ (917,005)
Actuarial Assumptions and Methods: The total pension liability in the July 1, 2021 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Investment rate of return 3.75% per annum
Discount rate 1.92% per annum as of July 1, 2021 (valuation date)
3.69% per annum as of June 30, 2022 (measurement date)
Inflation rate 2.75% per annum
Projected salary increases 3.00% per annum (for service cost only; benefits not pay -related)
The mortality assumptions used in the total pension liability at July 1, 2021 were based on the
Pub-2010 General Employee and Healthy Retiree Amount -Weighted Above -Median Mortality Tables
for males or females, projected generationally with the two-dimensional mortality improvement scale
M P-2019.
42
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Discount Rate: The discount rate used to measure the total pension liability was 1.92% as of the
valuation date, July 1, 2021, and 3.69% as of the measurement date, June 30, 2022. Because there
are no assets held in a trust, the discount rate is based on the 20-year, tax exempt general obligation
municipal bonds with an average rating of AA/Aa or higher.
Sensitivity of the Total Pension Liability to Changes in the Discount Rate: The following table
represents the total pension liability calculated using the discount rate of 3.69% as of the
measurement date, as well as what total pension liability would be if it were calculated using a
discount rate that is 1 percentage point lower (2.69%) or 1 percentage point higher (4.69%) than the
current rate:
1% Decrease Current Discount Rate 1% Increase
Total Pension Liability (2.69%) (3.69%) (4.69%)
June 30, 2022 $ 23,220,938 $ 20,382,770 $ 18,049,120
(7) Other Post -Employment Benefits (OPEB)
Plan Description: The post -employment medical benefits plan is a single -employer defined benefit
plan administered by OC San. This plan was established and may be modified only by action of the
OC San Board of Directors. Stand-alone financial statements are not issued.
Benefits Provided: OC San offers medical insurance to active and retired employees, as well as
their qualified dependents. All retirees may choose coverage in an OC San medical plan, with
retirees paying the full premium. However, for employees hired prior to July 1, 1988, medical benefits
begin immediately at retirement with OC San paying 2.5 months of premium for each year of
continuous service toward the cost of coverage under OC San medical plans. At the termination of
this period the retiree may elect to continue coverage at his/her own expense. For the fiscal year
ended June 30, 2022, premiums ranged between $218 and $4,021 per month, depending on the
plan and number of dependents covered.
At the July 1, 2021 actuarial valuation date, the following employees were covered by the benefit
terms:
Inactive employees or beneficiaries currently receiving benefits (includes
30 with premiums paid by OC San and 63 under age 65 paying premiums) 93
Active employees eligible for premiums paid by OC San 3
Total 96
Contributions: There are no employee contributions to this plan; OC San covers 100% of the cost
for qualifying employees as stated above. Retirees opting to remain with the plan after employment
pay 100% of the premium cost, except for those for whom OC San pays for a period (see above).
OC San utilizes a pay-as-you-go method for funding the plan. Contributions to the plan from OC San
were $458,191 and the estimated implicit subsidy was $1,054,160, resulting in total payments of
$1,512,351, and retirees contributed $1,187,798 for the year ended June 30, 2022.
43
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
OPEB Liabilities: As of June 30, 2022, OC San reported total OPEB liability of $2,077,772 for its
post -employment retiree medical benefits plan. The total OPEB liability was determined by an
actuarial valuation as of July 1, 2021. OC San funds benefits on a pay-as-you-go basis and elected
not to pre -fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability
is equal to the net OPEB liability. Standard actuarial update procedures were used to
project/discount from July 1, 2021 to the measurement date of June 30, 2022.
The actuarial valuation performed as of July 1, 2021 used the entry age, level percent of pay cost
method. This method represents the present value of benefits accrued through the valuation date,
assuming that each employee's liability is expensed from hire date until retirement date as a level
percentage of pay.
The following table shows the changes in the total OPEB liability:
Beginning balance at July 1, 2021
Changes in the year:
Service cost
Interest on total OPEB liability
Difference between expected and actual experience
Changes of assumptions
Benefit payments (1)
Net changes
Ending balance at June 30, 2022
Total OPEB Liability
Increase (Decrease)
$ 1,332,528
8,426
57,237
2,477,916
(285,984)
(1,512,351)
745,244
$ 2,077,772
(1) As part of the July 1, 2021 actuarial valuation report, Demsey, Filliger & Associates
prepared a projection of the expected annual cost to the District to pay OPEB benefits.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB: For the year ended
June 30, 2022, OC San recognized OPEB expense of $2,257,595 for its post -employment retiree
medical benefits plan. At June 30, 2022 OC San reported $0 for its share of deferred outflows/inflows
of resources related to OPEB.
44
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Actuarial Assumptions and Methods: The total OPEB liability in the July 1, 2021 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Investment rate of return 3.75% per annum
Discount rate 3.69% per annum
Inflation rate 2.75% per annum
Healthcare cost trend rate 4.00% for 2022-2023, 5.20% for 2024-2069, and 4.00%
for 2070 and later; Medicare ages: 4.00% for all years
Projected salary increases 3.00% per annum
The mortality assumptions used in the total OPEB liability at July 1, 2021 were based on the Pub-
2010 General Employee and Healthy Retiree Amount -Weighted Above -Median Mortality Tables for
males or females, projected generationally with the two-dimensional mortality improvement scale
M P-2019
Actuarial assumptions used in the July 1, 2021 valuation were based on a review of plan experience
during the period July 1, 2019 through June 30, 2021.
Discount Rate: The discount rate used to measure the total OPEB liability was 1.92% as of the
valuation date, July 1, 2021, and 3.69% as of the measurement date, June 30, 2022. Because there
are no assets held in a trust, for GASB 75 reporting purposes, the discount rate is based on a yield
or index rate for 20-year, tax exempt general obligation municipal bonds with an average rating of
AA/Aa or higher.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate: The following table
represents the total OPEB liability calculated using the discount rate of 3.69% as of the measurement
date, as well as what total OPEB liability would be if it were calculated using a discount rate that is
1 percentage point lower (2.69%) or 1 percentage point higher (4.69%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
Total OPEB Liability (2.69%) (3.69%) (4.69%)
June 30, 2022 $ 2,187,621 $ 2,077,772 $ 1,976,245
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following
table represents the total OPEB liability, as well as what total OPEB liability would be if it were
calculated using a healthcare cost trend rate that is 1 percentage point lower or 1 percentage point
higher than the current healthcare cost trend rate:
Total OPEB Liability 1% Decrease (1) Current Trend Rate (2) 1% Increase (3)
June 30, 2022 $ 1,964,288 $ 2,077,772 $ 2,199, 237
(1) 3.00% for 2022-2023, 4.20% for 2024-2069, and 3.00% for 2070 and later years; Medicare ages: 3.00% for all years
(2) 4.00% for 2022-2023, 5.20% for 2024-2069, and 4.00% for 2070 and later years; Medicare ages: 4.00% for all years
(3) 5.00% for 2022-2023, 6.20% for 2024-2069, and 5.00% for 2070 and later years; Medicare ages: 5.00% for all years
45
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Transactions with Irvine Ranch Water District — Revenue Area No. 14
Formation of Revenue Area No. 14 & Excess Purchase Price Over Book Value of Acquired Assets
On July 1, 1985, Revenue Area No. 14 was formed as an independent special district as a result of
a negotiated agreement between OC San and IRWD. At the time of Revenue Area 14's creation,
OC San consisted of eight independent special districts (see Note 1 — Reporting Entity). The eight
existing districts sold a portion of the joint treatment facilities and land to the newly created district
and recorded capacity rights revenue at the time of the sale.
In accordance with the negotiated agreement between OC San and IRWD, IRWD paid OC San
$34,532,000 for an initial 15 million gallons per day capacity in OC San's joint treatment facilities
(with an ultimate collection capacity of 32 million gallons per day) and for a pro-rata interest in real
property (based on flow of 32 million gallons per day). The book value of the assets acquired was
determined to be $14,553,000 as of June 30, 1986; these assets were recorded at book value in
Revenue Area 14. The excess of the purchase price over the assets' book value was $19,979,000
and was recorded as an intangible asset in Revenue Area 14. The excess of the purchase price over
the assets' book value was amortized over useful lives of the original assets acquired. The excess
of purchase price over the assets' book value was fully amortized as of June 30, 2017.
Annual Transactions
IRWD entered into a separate agreement with Revenue Area 14 on January 1, 1986 whereby IRWD
agreed to fund quarterly payments of Revenue Area 14's proportionate share of OC San's joint
capital outlay revolving fund budget requirements and certain capital improvements during the term
of the agreement, for which contributions of $5,819,876 were recorded as contributions from other
governments during the fiscal year ended June 30, 2022. IRWD also agreed to fund the annual
integration adjustment of Revenue Area 14's equity share in OC San's Joint Works Treatment
Facilities based on the flows discharged to OC San. Integration contributions credited to IRWD of
$23,622,471 from Revenue Area 14 were recognized and reported as contributions to other
governments during the fiscal year ended June 30, 2022. These contributions received from or
credited to IRWD for their agreed -upon share of capital assets and equity share in OC San's Joint
Works Treatment Facilities are calculated as prescribed in the agreements.
In addition, a separate agreement for transfer of IRWD's wastewater solids residuals to OC San was
entered on April 28, 2010. IRWD agreed to pay OC San for an interim solids handling charge which
includes annual capital and quarterly operating expense components designed to compensate OC
San for IRWD's share of the cost of operating and maintaining the existing facilities for the treatment
of solids. The initial term of this agreement ended on December 31, 2021, as IRWD solids handling
facilities are operational and all nonemergency discharges of wastewater solids residuals by IRWD
to the OC San Wastewater System have ceased. Solids capital handling charges of $317,096 were
reported as operating revenue in the Consolidated Revenue Area, and solids operating and
maintenance charges of $170,596 were reported as operating revenue in Revenue Area No. 14
during the fiscal year ended June 30, 2022. Amounts charged to IRWD are based on estimates, with
a reconciled adjustment recorded in the subsequent year.
Any amounts credited to IRWD are not refunded in cash but are held as a credit to satisfy future
contributions required of IRWD. Amounts owed from IRWD are invoiced on a quarterly or annual
basis. As a result, a balance of $54,695,465 was reported in due to other governmental agency as
of June 30, 2022.
46
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Notes to Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
Annual Cash Reserve Reauirement
The cash reserve contribution requirement from IRWD is $8.6 million at June 30, 2022, in
accordance with Amendment No. 2 to the Agreement between IRWD and OC San Acquiring
Ownership Interests, Assigning Rights, and Establishing Obligations. This cash reserve requirement
is recognized as a liability to IRWD.
(9) Commitments and Contingencies
Construction Commitments
OC San has active construction projects to add additional capacity, improve treatment, or
replace/rehabilitate existing assets. At June 30, 2022, the outstanding commitments with contractors
totaled $444,827,487.
Litigation
Certain claims involving disputed construction costs have arisen in the ordinary course of business.
Additionally, OC San is a defendant in lawsuits. Although the outcome of these matters is not
presently determinable, management does not expect that the resolution of these matters will have
a material adverse impact on the financial condition of OC San.
47
Table of Contents
(THIS PAGE LEFT INTENTIONALLY BLANK)
48
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
REQUIRED SUPPLEMENTARY INFORMATION
49
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Proportionate Share of the Net Pension Liability (Asset)
Orange County Employees Retirement System (OCERS) Pension Plan
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022
Proportion of the
net pension liability
1.13%
0.74%
(0.20%)
(0.80%)
0.47%
(0.97%)
(1.63%)
(8.72%)
(asset)
Proportionate
share of the net
$ 57,418,760
$ 42,439,759
$ (10,384,508)
$ (39,571,100)
$ 29,029,147
$ (49,446,615)
$ (68,643,378)
$ (178,731,245)
pension liability
(asset)
Covered payroll (2)
$ 58,641,163
$ 59,789,927
$ 60,000,017
$ 62,341,796
$ 66,475,479
$ 71,395,906
$ 73,290,519
$ 73,539,248
Proportionate
share of the net
pension liability
(asset) as a
°
97.92 /°
°
70.98 /°
°
(17.31 /°)
°
(63.47 /°)
°
43.67 /°
°
(69.26 /°)
°
(93.66 /°)
°
(243.04 /°)
percentage of
covered payroll
OCERS' fiduciary
net position as a
percentage of the 89.61% 92.74% 101.70% 105.96% 95.86% 106.64% 108.50% 121.74%
total pension
liability
(1) The amounts presented were determined as of the measurement date December 31. Data for fiscal years ended June 30, 2013 through 2014 is not
available in a comparable format.
(2) Covered payroll represents compensation earnable and pensionable compensation for the measurement period ended December 31. Only
compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
50
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Schedule of District Contributions
Orange County Employees Retirement System (OCERS) Pension Plan
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022
Contractually $ 17,201,569 $ 12,222,849 $ 7,709,734 $ 7,525,655 $ 7,769,431 $ 8,739,661 $ 8,479,429 $ 8,537,920
required contribution
Contributions in
relation to the
contractually
required contribution (17,201,569) (12,222,849) (7,709,734) (7,525,655) (7,769,431) (8,739,661) (8,479,429) (8,537,920)
Contribution
deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $
Covered payroll (2) $ 60,025,942 $ 60,595,474 $ 62,266,907 $ 65,390,144 $ 69,101,109 $ 69,688,759 $ 72,191,190 $ 74,053,285
Contributions as a
percentage of 28.66% 20.17% 12.38% 11.51 % 11.24% 12.54% 11.75% 11.53%
covered payroll
(1) The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2013 through 2014 is not available in
a comparable format.
(2) Covered payroll represents compensation earnable and pensionable compensation for the fiscal year ended June 30. Only compensation earnable and
pensionable compensation that would possibly qo into the determination of retirement benefits are included.
51
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Total Pension Liability (3)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022
Total pension liability $ 16,680,614 $ 18,313,122 $ 18,467,361 $ 20,831,172 $ 21,577,464 $ 21,434,655 $ 23,320,422 $ 20,382,770
Covered -employee $ 62,139,375 $ 62,977,577 $ 65,120,945 $ 68,126,103 $ 71,948,599 $ 74,602,862 $ 78,413,423 $ 79,472,505
payroll (2)
Total pension liability
as a percentage of 26.84% 29.08% 28.36% 30.58% 29.99% 28.73% 29.74% 25.65%
covered -employee
payroll
(1) The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2013 through 2014 is not available in
a comparable format.
(2) This plan is not administered through a trust or equivalent arrangement, thus covered -employee payroll is used. Covered -employee payroll represents
total payroll of employees that are provided benefits through the pension plan for the fiscal year ended June 30.
(3) There are no assets in a trust compliant with GASB codification P22.101. OC San funds benefits on a pay-as-you-go basis and elected not to pre -fund
its pension obligation. As a result, there are no plan assets and the total pension liability is equal to the net pension liability.
52
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Changes in Total Pension Liability (2)
Additional Retiree Benefit Account (ARBA)
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2016
2017
2018
2019
2020
2021
2022
Beginning balance at July 1
$ 16,680,614
$ 18,313,122
$ 18,467,361
$ 20,831,172
$ 21,577,464
$ 21,434,655
$ 23,320,422
Changes in the year:
Service cost
270,223
278,330
553,795
570,409
576,661
703,496
835,711
Interest on total pension
626,386
593,711
649,192
663,852
608,775
530,599
496,575
liability
Difference between
expected and actual
-
-
-
-
(2,263,797)
-
898,171
experience
Changes of assumptions
1,230,327
(70,952)
1,889,274
328,481
1,823,672
1,619,642
(4,129,069)
Benefit payments
(494,428)
(646,850)
(728,450)
(816,450)
(888,120)
(967,970)
(1,039,040)
Net changes
1,632,508
154,239
2,363,811
746,292
(142,809)
1,885,767
(2,937,652)
Ending balance at June 30
$ 18,313,122
$ 18,467,361
$ 20,831,172
$ 21,577,464
$ 21,434,655
$ 23,320,422
$ 20,382,770
(1) The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2013 through 2015 is not
available in a comparable format.
(2) OC San funds benefits on a pay-as-you-go basis and elected not to pre -fund its pension obligation. As a result, there are no plan assets and
the total pension liability is equal to the net pension liability.
53
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Total OPEB Liability (3)
Post -Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
Total OPEB liability
$ 6,398,694
$ 5,025,395
$ 4,013,291
$ 2,483,644
$ 1,332,528
$ 2,077,772
Covered -employee payroll (2)
$65,120,945
$68,126,103
$71,948,599
$74,602,862
$78,413,423
$79,472,505
Total OPEB liability as a
percentage of covered- 9.83% 7.38% 5.58% 3.33% 1.70% 2.61 %
employee payroll
(1) The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2013 through
2016 is not available in a comparable format.
(2) This plan is not administered through a trust or equivalent arrangement, thus covered -employee payroll is used. Covered -
employee payroll represents total payroll of employees that are provided benefits through the OPEB plan for the fiscal year
ended June 30.
(3) There are no assets in a trust compliant with GASB codification P52.101. OC San funds benefits on a pay-as-you-go basis and
elected not to pre -fund its OPEB obligation. As a result, there are no plan assets and the total OPEB liability is equal to the net
OPEB liability.
54
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Changes in Total OPEB Liability (3)
Post -Employment Medical Benefits Plan
Last 10 Fiscal Years (1)
Fiscal Year Ended June 30,
2018
2019
2020
2021
2022
Beginning balance at July 1
$ 6,398,694
$ 5,025,395
$ 4,013,291 $
2,483,644
$ 1,332,528
Changes in the year:
Service cost
18,182
16,489
4,334
5,238
8,426
Interest on total OPEB liability
177,395
159,195
98,047
45,840
57,237
Difference between expected
-
-
(115,924)
-
2,477,916
and actual experience
Changes of assumptions
(95,279)
78,935
88,289
41,063
(285,984)
Benefit payments (2)
(1,473,597)
(1,266,723)
(1,604,393)
(1,243,257)
(1,512,351)
Net changes
(1,373,299)
(1,012,104)
(1,529,647)
(1,151,116)
745,244
Ending balance at June 30
$ 5,025,395
$ 4,013,291
$ 2,483,644 $
1,332,528
$ 2,077,772
(1) The amounts presented for each fiscal year were determined as of June 30. Data for fiscal years ended June 30, 2013
through 2017 is not available in a comparable format.
(2) Benefit payments include implicit subsidy associated with benefits paid.
(3) OC San funds benefits on a pay-as-you-go basis and elected not to pre -fund its OPEB obligation. As a result, there are no
plan assets and the total OPEB liability is equal to the net OPEB liability.
55
Table of Contents
(THIS PAGE INTENTIONALLY LEFT BLANK)
M.
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
SUPPLEMENTARY INFORMATION
57
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Net Position
June 30, 2022
Current assets:
Cash and cash equivalents
Investments
Accounts receivable, net of allowance for uncollectibles $319,716
Accrued interest receivable
Connection fees receivable
Property tax receivable
Current portion of lease receivable
Inventories
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted:
Cash and cash equivalents
Investments
Accrued interest receivable
Net pension asset - OCERS
Unrestricted:
Non -depreciable capital assets
Depreciable capital assets, net of accumulated depreciation
Noncurrent portion of lease receivable
Other noncurrent assets, net
Total noncurrent assets
Total assets
Deferred outflows of resources:
Deferred outflows related to refundings
Deferred outflows related to pensions
Total deferred outflows of resources
Total assets and deferred outflows of resources
Current liabilities:
Accounts payable
Accrued expenses
Retentions payable
Interest payable
Due to other governmental agency
Current portion of long-term liabilities
Total current liabilities
Noncurrent liabilities:
Noncurrent portion of long-term liabilities
Total OPEB liability
Total pension liability - ARBA
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources:
Deferred inflows related to refundings
Deferred inflows related to leases
Deferred inflows related to pensions
Total deferred inflows of resources
Total liabilities and deferred inflows of resources
Net position:
Net investment in capital assets:
Collection system
Treatment and disposal land
Treatment and disposal system
Capital -related liabilities
Subtotal
Restricted for OCERS pension benefits
Unrestricted
Total net position
Revenue
Consolidated
Area No. 14
Revenue Area
Totals
$ 4,827,979
$ 80,875,614
$ 85,703,593
49,867,486
835,352,328
885,219,814
-
14,041,178
14,041,178
2,675,681
2,675,681
1,273,182
1,273,182
2,148,801
2,148,801
358,512
358,512
9,474,749
9,474,749
-
2,940,349
2,940,349
54,695,465
949,140,394
1,003,835,859
-
883,131
883,131
12,229,509
12,229,509
8,592
8,592
-
178,731,245
178,731,245
12,158,830
597,649,338
609,808,168
58,812,329
2,093,405,674
2,152,218,003
-
513,899
513,899
-
10,344
10,344
70,971,159
2,883,431,732
2,954,402,891
125,666,624
3,832,572,126
3,958,238,750
-
17,033,814
17,033,814
42,805,483
42,805,483
-
59,839,297
59,839,297
125,666,624
3,892,411,423
4,018,078,047
-
15,936,120
15,936,120
22,153,861
22,153,861
12,708,958
12, 708,958
-
16,055,500
16,055,500
54,695,465
-
54,695,465
-
52,569,390
52,569,390
54,695,465
119,423,829
174,119,294
-
876,171,575
876,171,575
2,077,772
2,077,772
20,382,770
20,382,770
-
898,632,117
898,632,117
54,695,465
1,018,055,946
1,072,751,411
-
1,951,850
1,951,850
842,461
842,461
127,345,284
127, 345,284
-
130,139,595
130,139,595
54,695,465
1,148,195,541
1,202, 891,006
13,039,221
557,245,324
570,284,545
1,702,487
52,037,181
53,739,668
56,229,451
2,081,772,507
2,138,001,958
-
(936,536,326)
(936,536,326)
70, 971,159
1,754, 518,686
1,825,489,845
-
108,179,040
108,179,040
-
881,518,156
881,518,156
$ 70,971,159
$ 2,744,215,882
$ 2,815,187,041
58
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Revenues, Expenses, and Change in Net Position
For the Year Ended June 30, 2022
Operating revenues:
Service charges
Permit and inspection fees
Total operating revenues
Operating expenses other than depreciation
and amortization:
Salaries and benefits
Utilities
Supplies, repairs and maintenance
Contractual services
Feasibility studies
Other operating expenses
Total operating expenses other than
depreciation and amortization
Operating income (loss) before
depreciation and amortization
Depreciation and amortization
Operating income (loss)
Non -operating revenues:
Property taxes
Investment and interest income (loss)
Contributions from other governments
Other non -operating revenues
Total non -operating revenues
Non -operating expenses:
Interest
Contributions to other governments
Loss on disposal of assets
Other non -operating expenses
Total non -operating expenses
Income (loss) before capital contributions
Capital contributions:
Capital facilities capacity charges
Capital contributions from other governments
Total capital contributions
Change in net position
Total net position - beginning
Revenue
Consolidated
Area No. 14
Revenue Area
Totals
$ 2,194,925
$ 325,629,010
$ 327,823,935
14,390
1,256,839
1,271,229
2,209,315
326,885,849
329,095,164
2,480,475
54,523,096
57,003,571
315,443
10,730,103
11,045,546
1,436,056
45,646,013
47,082,069
906,215
24,208,336
25,114,551
144,425
6,345,957
6,490,382
201,530
9,177,044
9,378,574
5,484,144
150,630,549
156,114,693
(3,274,829)
176,255,300
172,980,471
4,782,120
125,683,102
130,465,222
(8,056,949)
50,572,198
42,515,249
4,364,469
114,821,419
119,185,888
(1,312,689)
(34,021,947)
(35,334,636)
5,829,203
397,306
6,226,509
35,362
1,577,252
1,612,614
8,916,345
82,774,030
91,690,375
-
30,026,862
30,026,862
23,622,471
-
23,622,471
59,280
1,738,823
1,798,103
897
35,492
36,389
23,682,648
31,801,177
55,483,825
(22,823,252)
101,545,051
78,721,799
-
18,282,752
18,282,752
181,338
7,618,841
7,800,179
181,338
25,901,593
26,082,931
(22,641,914)
127,446,644
104,804,730
93.613.073
2.616.769.238
2.710.382.311
Total net position - ending $ 70,971,159 $ 2,744,215,882 $ 2,815,187,041
59
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Combining Area Schedule of Cash Flows
For the Year Ended June 30, 2022
Cash flows from operating activities:
Receipts from customers and users
Payments to employees
Payments to suppliers
Net cash provided by (used in) operating activities
Cash flows from noncapital financing activities:
Proceeds from property taxes
Receipts for other activities
Net cash provided by (used in) noncapital financing activities
Cash flows from capital and related financing activities:
Capital facilities capacity charges
Contributions from other governments
Receipts from lease agreements
Additions to capital assets
Disposal of capital assets
Principal payments on debt obligations
Interest paid
Proceeds from debt issuance
Debt issuance costs
Net cash provided by (used in) capital and related financing activities
Cash flows from investing activities:
Proceeds from sale of investments
Purchases of investments
Interest received
Net cash provided by (used in) investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Reconciliation of operating income (loss) to net cash provided
by (used in) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
Bad debt expense (net recoveries)
(Increase)/decrease in operating assets and deferred outflows:
Accounts receivable
Inventories
Prepaid expenses
Net pension asset - OCERS
Deferred outflows related to pensions
Increase/(decrease) in operating liabilities and deferred inflows:
Accounts payable
Accrued expenses
Due to other governmental agency
Compensated absences
Claims and judgments
Total OPEB liability
Total pension liability - ARBA
Deferred inflows related to pensions
Net cash provided by (used in) operating activities
Noncash activities:
Unrealized gain (loss) on the fair value of investments
Capital assets acquired through accounts payable
Capital facilities capacity charges acquired
Revenue Consolidated
Area No. 14 Revenue Area Eliminations Totals
$ 28,242,420
$ 335,704,963 $
$ 363,947,383
(2,480,475)
(83,786,294)
(86,266,769)
(3,003,669)
(96,370,244)
(99,373,913)
22,758,276
155,548,425
178,306,701
4,364,469 114,435,440 118,799,909
22,528 1,130,468 1,152,996
4,386,997 115,565,908 119,952,905
- 17,667,474 - 17,667,474
(17,611,930) 8,016,147 17,802,596 8,206,813
11,001 429,161 - 440,162
(5,819,875) (191,912,464) 5,819,875 (191,912,464)
23,622,471 - (23,622,471) -
- (304,965,000) (304,965,000)
- (40,469,300) (40,469,300)
- 272,127,209 272,127,209
- (986,623) (986,623)
201,667 (240,093,396) (239,891,729)
(1,485,774)
492,997,424
491,511,650
(24,375,977)
(547,690,893)
(572,066,870)
450,551
11,388,031
11,838,582
(25,411,200)
(43,305,438)
(68,716,638)
1,935,740
(12,284,501)
(10,348,761)
2,892,239
94,043,246
96,935,485
$ 4,827,979
$ 81,758,745 $
$ 86,586,724
$ (8,056,949) $ 50,572,198 $ - $ 42,515,249
4,782,120 125,683,102
- (104,744)
130,465,222
(104,744)
- 8,923,858
8,923,858
- (1,089,417)
(1,089,417)
- (405,916)
(405,916)
- (110,087,867)
(110,087,867)
- 11,248,696
11,248,696
(250,254)
(250,254)
- 1,652,607
1,652,607
26, 033,105 -
26, 033,105
- (205,652)
(205,652)
- 940,400
940,400
- 745,244
745,244
- (2,937,652)
(2,937,652)
- 70,863,822
70,863,822
$ 22,758,276 $ 155,548,425 $
$ 178,306,701
$ (1,764,386) $ (45,044,834) $ (46,809,220)
12,286,303 12,286,303
615,278 615,278
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
STATISTICAL SECTION
This part of the Annual Comprehensive Financial Report of the Orange County Sanitation District (OC
San) presents detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about OC San's overall
financial health.
Contents
Pages
Financial Position and Trends
These schedules contain current and trend information to help the reader understand
OC San's financial position and how OC San's financial performance and well-being
have changed over time. 62 - 66
Revenue Capacity
These schedules contain information to help the reader assess OC San's most
significant revenue source of sewer service fees. 67 - 69
Debt Capacity
These schedules present information to help the reader assess the affordability of OC
San's current levels of outstanding debt and OC San's ability to issue additional debt in
the future. All of OC San's debt is recorded in a proprietary fund; consequently, many of 70 - 72
the schedules which are applicable to governmental funds are not presented.
Operating Information
These schedules contain data to help the reader understand how the information in OC
San's financial report relates to the services it provides and the activities it performs. 73 - 76
Demographic and Economic Factors
These schedules offer demographic information to help the reader understand the
environment within which OC San's financial activities take place. 77 - 80
61
Table of Contents
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Fiscal Year
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
ORANGE COUNTY SANITATION DISTRICT
Net Position by Component
(Dollars in Thousands)
Last Ten Fiscal Years
O Net Investment in Capital Assets O Restricted for Pension Benefits O Unrestricted
Net Investment in
Restricted for
Capital Assets
Pension Benefits (4)
Unrestricted (4)
$ 1,180,298
$ -
$ 520,427
1,204,706
-
617,589
1,327,384
-
434,460
1,429,269
-
489,303
1,504,898
17,112
519,215
1,568,118
23,893
602,778
1,647,723
16,837
695,942
1,678,041
52,844
808,125
1,740,102
63,748
906,532
1,825,490
108,179
881,518
Total Net Position
1,700,725
1,822,295
1,761,844
1,918,572 (2)
2,041,225
2,194,789 (3)
2,360,502
2,539,010
2,710,382
2,815,187
Notes
(1) Beginning net position restated due to implementation of GASB 68.
(2) Beginning net position restated due to implementation of GASB 73.
(3) Beginning net position restated due to implementation of GASB 75.
(4) FY 2016-17 to 2020-21 net position restated to reflect amounts restricted for OCERS pension benefits.
Source: Orange County Sanitation District's Financial Management Division.
62
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Revenues and Gross Capital Contributions by Source
(Dollars in Thousands)
Last Ten Fiscal Years
lie
❑ Operating Revenue ❑ Non -Operating Revenue ❑ Capital Contributions
Operating Revenue
Non -Operating Revenue
Permit &
Fiscal
Service
Inspection
Total
Property
Total Non-
Capital
Year
Charges
Fees
Operating
Taxes
Interest
Other (1)
Operating
Contributions
2012-13
$ 303,400
$ 1,176
$ 304,576
$ 79,240
$ (3,913)
$ 3,781
$ 79,108
$ 12,797
2013-14
300,611
848
301,459
74,944
6,498
12,595
94,037
14,093
2014-15
301,548
902
302,450
79,835
4,806
9,996
94,637
17,656
2015-16
314,477
951
315,428
84,407
9,183
14,658
108,248
17,974
2016-17
312,237
1,045
313,282
88,284
3,081
27,146
118,511
16,351
2017-18
316,329
1,170
317,499
94,188
3,230
4,055
101,473
21,633
2018-19
317,291
1,199
318,490
99,534
29,102
27,197
155,833
23,797
2019-20
339,895
1,169
341,064
104,492
33,669
6,731
144,892
29,034
2020-21
335,569
1,131
336,700
110,245
1,694
11,176
123,115
33,936
2021-22
327,824
1,271
329,095
119,186
(35,335)
7,840
91,691
26,083
Notes
(') FY 2017-18 to 2020-21 restated to reflect capital contributions from other governments.
Source: Orange County Sanitation District's Financial Management Division.
63
Table of Contents
$300,000
$275,000
$250,000
$225,000
$200,000
$175,000
$150,000
$125,000
$100,000
$75,000
$50,000
$25,000
$0
Fiscal
Year
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
ORANGE COUNTY SANITATION DISTRICT
Expenses by Type
(Dollars in Thousands)
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
❑ Operating Expense ❑ Non -Operating Expense
Operating Expense
Non -Operating Expense
Salaries &
Maint &
Depr &
Total
Interest
Total Non -
Benefits
Utilities
Other
Amort
Operating
Expense
Other
Operating
$ 76,878
$ 6,403
$ 66,536
$ 63,907
$ 213,724
$ 42,315
$ 37,335
$ 79,650
79,179
6,381
60,887
99,805
246,252
40,450
1,317
41,767
79,657
7,246
62,323
94,186
243,412
34,112
3,168
37,280
75,576
7,246
70,679
90,502
244,003
27,597
6,482
34,079
74,291
6,119
69,843
96,320
246,573
25,648
53,270
78,918
67,418
7,298
70,840
97,399
242,955
35,011
1,483
36,494
85,506
7,733
73,347
102,239
268,825
34,466
29,116
63,582
82,917
8,622
76,794
113,888
282,221
33,833
20,428
54,261
74,772
9,789
83,457
116,452
284,470
34,837
3,072
37,909
57,004
11,046
88,065
130,465
286,580
30,027
25,457
55,484
Source: Orange County Sanitation District's Financial Management Division.
64
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Change in Net Position
(Dollars in Thousands)
Last Ten Fiscal Years
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Ending Net Position by Fiscal Year
Fiscal
Total
Total
Year
Revenues
Expenses
2012-13
$ 396,481
$ 293,374
2013-14
409,589
288,019
2014-15
414,743
280,692
2015-16
441,650
278,082
2016-17
448,144
325,491
2017-18
440,605
279,449
2018-19
498,120
332,407
2019-20
514,990
336,482
2020-21
493,751
322,379
2021-22
446,869
342,064
Change in
Beginning
Ending
Net Position
Net Position
Net Position
$103,107
$1,597,618
$ 1,700,725
121,570
1,700,725
1,822,295
134,051
1,627,793 (1)
1,761,844
163,568
1,755,004 (2)
1,918,572
122,653
1,918,572
2,041,225
161,156
2,033,633 (3)
2,194,789
165,713
2,194,789
2,360,502
178,508
2,360,502
2,539,010
171,372
2,539,010
2,710,382
104,805
2,710,382
2,815,187
Notes
(1) Beginning net position restated due to implementation of GASB 68.
(2) Beginning net position restated due to implementation of GASB 73.
(3) Beginning net position restated due to implementation of GASB 75.
Source: Orange County Sanitation District's Financial Management Division.
65
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Reserve Balances
(Dollars in Millions)
Last Ten Fiscal Years
Capital
Debt
Cash Flow
Self-
Improvement
Service
Fiscal Year
Contingency
Insurance
Program
Requirements
Total
2012-13
$ 174
$ 57
$ 234
$135
$ 600
2013-14
189
57
296
131
673
2014-15
177
57
194
129
557
2015-16
181
57
190
117
545
2016-17
174
57
173
107
511
2017-18
173
57
350
100
680
2018-19
177
57
429
97
760
2019-20
178
57
552
94
881
2020-21
128
100
639
94
961
2021-22
134
100
659
91
984
Notes
The Board of Directors of the Orange County Sanitation District has established the criteria below to determine the total
funds required as listed in the Accumulated Funds and Reserves Policy:
The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service
expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and
sewer service user fees.
The Self -Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general
liability and workers' compensation.
The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a
target level at one half of the average annual capital improvement program over the next 10 years.
The Debt Service Requirements Reserve is held pursuant to the provisions of certificates of participation issues, and the
monies are not available for the general needs of the Orange County Sanitation District.
Source: Orange County Sanitation District's Financial Management Division.
0
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Sewer Service Fees
Single Family Residence Rate
Last Nine Fiscal Years and Next Fiscal Year
Sewer service fees are comprised of three categories: residential customers, commercial customers, and
industrial customers. Although the majority of sewer service fee revenues are from residential and
commercial customers (see the schedule of Number of Accounts and Revenues by Customer Class), the
fee paid by each residential and commercial customer is less than the individual fees paid by industrial
customers. The rates for commercial and industrial customers are derived from the base sewer service fee
charged for a single-family residence and are based on the type of business and the strength and volume
of waste that is discharged into the sewer system. Due to the complexity of the rate structure for
commercial and industrial customers and since the rates are derivatives of the single-family residence rate,
only the single-family residence rate is presented within the statistical section.
400
350
m
m
LL
M
3 300
c
c
Q
LL 250
N
200
150
Sewer Service
Fiscal Year
Charge
2013-14
$ 308.00
2014-15
316.00
2015-16
322.00
2016-17
327.00
2017-18
331.00
2018-19
335.00
2019-20
339.00
2020-21
339.00
2021-22
343.00
2022-23
347.00
Annual Sewer Service Fees
Single Family Residence
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Fiscal Year
Source: Orange County Sanitation District's Financial Management Division.
67
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Number of Accounts and Revenues by Customer Class
(Dollars in Millions)
Last Ten Fiscal Years
Residential/Commercial
Industrial
Number of
Total
Percentage
Total
Percentage
Equivalent
Sewer Svc.
of Sewer
Number of
Sewer Svc.
of Sewer
Fiscal
Single -Family
Charge
Service Charge
Customer
Charge
Service Charge
Year
Dwellings (1)
Revenue
Revenues
Accounts
Revenue
Revenues
2012-13
883,477
$ 259.8
96%
527
$ 10.8
4%
2013-14
873,308
269.0
96%
489
14.4
4%
2014-15
824,465
260.5
95%
467
14.2
5%
2015-16
863,317
278.0
95%
450
12.6
5%
2016-17
859,869
281.2
96%
466
13.8
4%
2017-18
871,338
288.4
95%
473
17.9
5%
2018-19
871,312
291.9
94%
476
9.4
6%
2019-20
904,886
306.8
97%
473
12.8
3%
2020-21
908,219
307.9
96%
467
12.6
4%
2021-22
900,327
308.8
96%
462
12.6
4%
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150, 000, 000
$100, 000, 000
$50,000,000
$0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
O Residential/Commercial Users ■ Industrial Users
Notes
(1) - Number of equivalent single-family dwellings is an estimate, calculated by dividing residential/commercial revenue
by the sewer service fee for each fiscal year.
Source: Orange County Sanitation District's Financial Management Division.
68
Table of Contents
Customer
ORANGE COUNTY SANITATION DISTRICT
Principal Sewer Service Customers
For the Current Fiscal Year and Nine Years Ago
House Foods America Corp. (West)
Nor -Cal Beverage Co. Inc. (Main)
Stremicks Heritage Foods, LLC
Pulmuone Foods USA (Wildwood), Inc. (East)
Newport Fab, LLC (TowerJazz Semiconductor)
House Foods America Corp. (East)
MCP Foods, Inc.
Ameripec, Inc.
Expo Dyeing and Finishing, Inc.
Brea Power II, LLC
Kimberly-Clark Worldwide, Inc.
Dean Foods Co. of CA Inc.
Schreiber Foods Inc.
Pepsi -Cola Bottling Group
Fiscal Year Ended 6/30/22
Fiscal Year Ended 6/30/13
Industrial
% to Total
Industrial
% to Total
Permittee
Service
Permittee
Service
Service
Charge
Service
Charge
Charges
Rank
Revenue
Charges
Rank
Revenue
$ 1,290,694
1
0.39%
$ 953,542
2
0.31%
1,002,810
2
0.31%
416,000
9
0.14%
910,602
3
0.28%
986,405
1
0.33%
800,560
4
0.24%
574,797
6
0.19%
744,655
5
0.23%
446,894
8
0.15%
706,314
6
0.22%
480,671
7
0.15%
870,130
5
0.29%
434,275
8
0.13%
382,099
9
0.12%
334,976
10
0.10%
903,947
3
0.30%
890,943
4
0.29%
473,289
7
0.16%
394,930
10
0.13%
$ 7,087,656
2.17%
$ 6,910,877
2.29%
Although the majority of sewer service fee revenues are from residential and commercial customers (see the schedule of
Number of Accounts and Revenues by Customer Class), the fee paid by each residential and commercial customer is less
than the individual fees paid by industrial customers. Consequently, this schedule shows the largest sewer service fee
customers.
Source: Orange County Sanitation District's Financial Management Division.
.•
Table of Contents
70%
60%
50%
40%
30%
20%
10%
0%
ORANGE COUNTY SANITATION DISTRICT
Ratio of Annual Debt Service to Total Expenses
(Dollars in Thousands)
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Fiscal
Year
Principal (1)
2012-13
$ 23,965
2013-14
39,590
2014-15
27,875
2015-16
29,405
2016-17
35,575
2017-18
32,140
2018-19
31,655
2019-20
32,730
2020-21
30,430
2021-22
33,875
Ratio of Debt
Total
Service to Total
Total Debt
Operating
Operating
Interest (2)
Service (3)
Expenses (4)
Expenses
$ 53,640
$ 77,605
$ 149,817
51.80%
53,163
92,753
146,447
63.34
53,586
81,461
149,226
54.59
50,301
79,706
153,501
51.93
47,143
82,718
150,253
55.05
43,466
75,606
145,556
51.94
44,481
76,136
166,586
45.70
43,664
76,394
168,332
45.38
42,061
72,491
168,018
43.14
40,564
74,439
156,115
47.68
Notes
(1) - Excludes principal reductions due to debt refundings.
(2) - Excludes amortization of premium/discount and deferred amount.
(3) - Debt consists of certificates of participation, revenue obligations, and anticipation notes.
(4) - Excludes depreciation and amortization expense.
Source: Orange County Sanitation District's Financial Management Division.
70
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Debt Coverage Ratios
(Dollars in Millions)
Last Ten Fiscal Years
The Orange County Sanitation District has no legal debt limits as imposed by state legislation. OC San does have contractual covenants within
the existing certificates of participation indenture agreements which require minimum coverage ratios of 1.25. The coverage ratio is calculated
as the ratio of net annual revenues available for debt service payments to total annual debt service requirements.
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
2011-12 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Operating & Non -Operating Revenues:
Service Charges, Net of Refunds -Regional
Service Charges, Net of Refunds -Local (1)
Industrial Sewer Service Charges
SAW PA Assessment
IRWD Assessment
Ad Valorem Taxes
Interest Earnings (2)
Other Revenues (3)
Total Revenues
Operating Expenses (4)
Net Revenues
Debt Service Requirements
Principal Payments
Interest Payments
Total Debt Service Requirements
Coverage Ratios
Ending Reserves (5)
Fiscal Year Ending June 30,
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$ 259.8 $ 269.0 $ 260.5 $ 278.0 $ 281.2 $ 288.4 $ 291.9 $ 306.8 $ 307.9 $ 308.8
5.8
5.7
5.5
5.7
1.3
(0.1)
-
-
-
-
10.8
14.4
14.2
12.6
13.8
17.9
9.4
12.8
12.6
12.6
2.7
2.4
2.7
3.2
3.3
2.7
2.9
2.6
2.8
2.8
25.6
19.6
26.4
26.6
36.0
9.9
36.3
20.8
16.0
8.6
79.2
74.9
79.8
84.4
88.3
94.2
99.5
104.5
110.2
119.2
(3.9)
6.5
4.8
9.2
3.1
3.2
29.1
33.7
1.7
(35.3)
3.7
3.0
3.2
4.0
4.8
2.8
5.2
4.8
8.6
4.1
383.7
395.5
397.1
423.7
431.8
419.0
474.3
486.0
459.8
420.8
149.8
146.4
149.2
153.5
150.3
145.6
166.6
168.3
168.0
156.1
$ 233.9
$ 249.1
$ 247.9
$ 270.2
$ 281.5
$ 273.4
$ 307.7
$ 317.7
$ 291.8
$ 264.7
$ 24.0
$ 39.6
$ 27.9
$ 29.4
$ 35.6
$ 32.1
$ 31.7
$ 32.7
$ 30.4
$ 33.9
53.6
53.2
53.6
50.3
47.1
43.5
44.4
43.7
42.1
40.5
$ 77.6
$ 92.8
$ 81.5
$ 79.7
$ 82.7
$ 75.6
$ 76.1
$ 76.4
$ 72.5
$ 74.4
3.01
2.68
3.04
3.39
3.40
3.62
4.04
4.16
4.02
3.56
$ 465.0
$ 542.0
$ 428.0
$ 428.0
$ 404.0
$ 580.0
$ 663.0
$ 787.0
$ 867.0
$ 893.0
Notes
(1) - Local Sewer transferred to East Orange County Water District in FY2016-17.
(2) - Interest earnings include unrealized gains and losses from investments adjusted to market value.
(3) - FY 2017-18 to 2020-21 other revenues restated to remove capital contributions from other governments.
(4) - Operating expenses exclude depreciation and amortization expenses.
(5) - Excludes debt service reserves in accordance with the Orange County Sanitation District's reserve policy.
Source: Orange County Sanitation District's Financial Management Division.
71
Table of Contents
Fiscal
Year
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
ORANGE COUNTY SANITATION DISTRICT
Ratios of Outstanding Debt
Last Ten Fiscal Years
(5)
Total
Outstanding
Debt
$ 1,325,928,512
1,278,998,124
1,241,140,357
1,206,722,347
1,140,679,773
1,095,737,610
1,050,502,373
1,004,215,901
963,115,533
913,102,847
(3)
Median
Family
Income (1)
$ 84,100
84,900
85,900
85,000
88,000
92,700
97,900
103,000
106,700
119,100
Debt as a
Percentage
of Median
Family
Inrmmn
0.006%
0.007%
0.007%
0.007%
0.008%
0.008%
0.009%
0.010%
0.011 %
0.013%
(4)
Population
Estimate (2)
2,472,122
2,491,268
2,521,803
2,548,745
2,578,681
2,609,419
2,607,092
2,589,011
2,550,763
2,557,216
Debt
per
Capita
536.35
513.39
492.16
473.46
442.35
419.92
402.94
387.88
377.58
357.07
Notes & Data Sources
(1) - Data is for the entire county of Orange.
(2) - Data is for the estimated population served by the Orange County Sanitation District.
(3) - Data Source: U.S. Department of Housing and Urban Development.
(4) - Data Source: Demographic Research Unit, California Department of Finance.
(5) - Data Source: Orange County Sanitation District. Debt includes certificates of participation,
revenue obligations, and anticipation notes and is presented net of original issuance premiums.
72
Table of Contents
Fiscal
Year
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Millions of
Gallons of
Wastewater
Treated
Per Day
200
198
187
183
188
185
191
188
182
179
ORANGE COUNTY SANITATION DISTRICT
Comparison of the Volume of Wastewater Treated
With Revenues and Expenses
Last Ten Fiscal Years
Collection,
Treatment
& Disposal
Cost per
Million
Gallons
$ 1,906.01
1,936.64
2,070.97
2,110.43
2,054.56
2,069.30
2,274.73
2,421.83
2,428.28
2,254.66
Total
Operating
Costs
(In Thousands)
$ 213,724
246,252
243,412
244,003
246,573
242,955
268,825
282,221
284,470
286,580
Total
Total
Total
Non -Operating
Operating
Non -Operating
Costs
Revenues
Revenues(l)
(In Thousands)
(In Thousands)
(In Thousands)
$ 79,650
$ 304,576
$ 79,108
41,767
301,459
94,037
37,280
302,450
94,637
34,079
315,428
108,248
78,918
313,282
118,511
36,494
317,499
101,473
63,582
318,490
155,833
54,261
341,064
144,892
37,909
336,700
123,115
55,484
329,095
91,691
Total expenses in FY 2021-22 increased $49 million, or 16.6 percent since FY 2012-13, primarily as a result of expansion of
the Capital Improvement Program (CIP) and increase in operational services levels with OC San's decision beginning in FY
2002-03 to maximize existing secondary treatment facilities as OC San moved from a 50/50 mix of primary and secondary
effluent treatment to meeting secondary treatment standards as of December 31, 2012. The majority of the increase in
expenses is due to depreciation expense as a result of the expansion in capital facilities. Increases were also realized in
repairs, maintenance, utilities, and other operating costs in order to deliver required levels of service.
In FY 2021-22, personnel expenses decreased 23.8 percent over the prior year. This decrease is mainly due to the difference
between projected and actual investment earnings on OCERS plan investments that have been recognized as pension
expense. There was no change in the number of full-time equivalent positions authorized from the prior year.
As depicted from the chart above, actual wastewater treatment flows were 200 mgd in FY 2012-13. The last several years of
California's record -breaking drought and water conservation efforts have resulted in FY 2021-22 flows of only 179 mgd, a
decrease of 21 mgd or 10.5 percent since FY 2012-13.
Notes
"I FY 2017-18 to 2020-21 restated to remove capital contributions from other governments.
Source: Orange County Sanitation District's Financial Management Division.
73
Table of Contents
700
600
500
400
300
200
100
0
ORANGE COUNTY SANITATION DISTRICT
Authorized Full-time Equivalents (FTE) by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Management (1)
❑ Environmental Services (3)
❑ Operations and Maintenance
General Management (1)
Human Resources (2)
Administrative Services (2)
Environmental Services (3)
Facilities Support Services (3)
Engineering
Operations and Maintenance
Total FTEs
❑ Human Resources (2) ❑ Administrative Services (2)
❑ Facilities Support Services (3) ❑ Engineering
Fiscal Year Ending June 30,
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
12
12
14
15
15
15
14
15
18
15
16
18
16
27
27
27
27
27
26
26
111
110
111
98
99
99
100
101
101
102
-
-
-
-
91
91
91
92
93
93
81
78
76
63
-
-
-
-
-
-
125
123
123
127
116
116
116
121
117
116
281
283
284
294
279
287
288
284
284
287
626
624
624
624
627
635
636
640
639
639
Notes
(1) - Management Discretion positions used on a temporary basis have been excluded from FTE count.
(2) - In 2016, Risk Management moved from Administrative Services to Human Resources Department.
(3) - In 2017, Divisional reorganization created Environmental Services and eliminated Facilities Support Services.
Source: Orange County Sanitation District's Financial Management Division.
74
Table of Contents
350,000
300,000
250,000
200,000
150,000
100.000
ORANGE COUNTY SANITATION DISTRICT
Biosolids Produced
Last Ten Fiscal Years
Wet Tonnage by Fiscal Year
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Fiscal Year Wet Tonnaae
2012-13
274,957
2013-14
279,362
2014-15
275,943
2015-16
283,052
2016-17
288,771
2017-18
284,039
2018-19
254,616
2019-20
209,000
2020-21
198,306
2021-22
186,128
Notes
(1) Beginning in Fiscal Year 2018-19, biosolids produced were reduced due to the commissioning of
dewatering centrifuges at both treatment plants.
Source: Orange County Sanitation District's Environmental Compliance Division.
75
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Capital Asset Statistics
Last Ten Fiscal Years
Miles of
Trunk &
Number
Primary
Secondary
Fiscal
Subtrunk
of Pump
Treatment
Treatment
Year
Sewers
Stations
Capacity (1)
Capacity (1)
2012-13
572
17
376
332
2013-14
580
17
376
332
2014-15
580
17
376
332
2015-16
570
17
376
332
2016-17
396 (2)
17
376
332
2017-18
396
17
376
332
2018-19
389
17
376
332
2019-20
388
17
376
332
2020-21
388
17
376
332
2021-22
388
17
376
332
Notes
(1) - Capacity is presented as million gallons treated per day.
(2) - In FY 2016-17, local sewers were transferred to East Orange County Water District.
Source: Orange County Sanitation District
76
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Demographic Statistics
Covering The Entire County of Orange (i)
Last Ten Fiscal Years
Total
(4)
(5)
(2)
Personal
Per Capita
Median
Public
(6)
Fiscal
Population
Income
Personal
Family
School
Unemployment
Year
Estimates
(In Thousands)
Income
Income
Enrollment
Rate
2012-13
3,082,000
$ 166,370,000
(3)
$ 53,981
$ 84,100
501,801
6.1%
2013-14
3,114,000
179,141,000
(3)
57,528
84,900
500,487
5.2%
2014-15
3,148,000
193,081,000
(3)
61,334
85,900
497,116
4.3%
2015-16
3,183,000
200,783,000
(3)
63,080
85,000
493,030
4.4%
2016-17
3,194,000
205,052,000
(3)
64,199
88,000
490,430
3.8%
2017-18
3,221,000
212,902,000
(3)
66,098
92,700
485,835
3.3%
2018-19
3,222,000
221,803,000
(3)
68,840
97,900
478,823
3.0%
2019-20
3,194,000
236,303,000
(3)
73,983
103,000
473,612
13.6%
2020-21
3,153,764
255,824,000
(3)
81,117
106,700
456,572
6.5%
2021-22
3,162,245
267,143,000
(3),(7)
84,479
119,100
448,729
2.9%
Notes and Data Sources
(1) - The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles that make
up the boundaries of Orange County.
(2) - Data Source: Demographic Research Unit, California Department of Finance.
(3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(4) - Data Source: U.S. Department of Housing and Urban Development.
(5) - Data Source: California Department of Education, Educational Demographics Unit.
(6) - Data Source: State of California, Employment Development Department as of June 30 of each fiscal year.
(7) - Forecasted number.
77
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Estimated Population Served by the
Orange County Sanitation District
June 30, 2022
Anaheim
Brea
Buena Park
Costa Mesa
Cypress
Fountain Valley
Fullerton
Garden Grove
Huntington Beach
Irvine
La Habra
La Palma
Los Alamitos
Newport Beach
Orange
Placentia
Santa Ana
Seal Beach
Stanton
Tustin
Villa Park
Westminster
Yorba Linda
Subtotal Cities (1)
Estimated Population Served in
Unincorporated Areas (2)
Data Sources
Population
as of
January 1, 2022
341,245
46,872
83,430
111,394
49,810
56,564
142,732
170,526
196,100
310,250
61,792
15,332
11,873
83,727
137,676
51,204
308,459
24,846
39,275
79,535
5,782
90,393
67,233
2,486,050
71,166
2.557.216
(1) Demographic Research Unit, State of California Department of Finance
(2) Center for Demographic Research, California State University, Fullerton.
78
Table of Contents
Employers
University of California, Irvine
Walt Disney Co.
County of Orange
Providence (St. Joseph Health)
Kaiser Permanente
Albertsons Southern California
Hoag Memorial Hospital
Walmart Inc.
Target Corp.
MemorialCare
Boeing Co.
Bank of America Corp.
Cedar Fair LP
Total
ORANGE COUNTY SANITATION DISTRICT
Principal Orange County Employers (1)
For the Current Fiscal Year and Nine Years Ago
Fiscal Year Ended 6/30/22
Percentage of
Number of
Total County
Employees (2)
Rank
Employment (3)
26,182
1
1.71 %
25,000
2
1.63%
18,139
3
1.19%
13,079
4
0.86%
8,800
5
0.58%
7,853
6
0.51 %
7,051
7
0.46%
6,300
8
0.41 %
6,000
9
0.39%
5,490
10
0.36%
123,894 8.10%
Fiscal Year Ended 6/30/13
Percentage of
Number of
Total County
Employees (4)
Rank
Employment (5)
21,800
2
1.42%
25,000
1
1.63%
17,257
3
1.13%
11,679
4
0.76%
6,300
6
0.41 %
5,400 9
5,545 8
6,873 5
6,000 7
5,200 10
111,054
0.35%
0.36%
0.45%
0.39%
0.34%
7.24%
Notes & Data Sources
(1) - Data is for the entire county of Orange.
(2) - Data Source: Orange County Business Journal Book of Lists published November 2021
(3) - Data Source: State of California, Employment Development Department
- Percentage is calculated by dividing employees by total employment of 1,529,500 as of June 2022.
(4) - Data Sources: Orange County Business Journal Book of Lists published November 2012; County of Orange
(5) - Data Source: State of California, Employment Development Department
- Percentage is calculated by dividing employees by total employment of 1,533,100 as of June 2013.
79
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Operating Indicators
June 30, 2022
District Organization: The Orange County Sanitation District is one consolidated district made up of two revenue
areas which service unincorporated county areas and twenty-three cities and related special districts, as follows:
Consolidated Revenue Area
Orange County (unincorporated areas)
Cities:
Anaheim
Brea
Buena Park
Costa Mesa
Cypress
Fountain Valley
Fullerton
Garden Grove
Special Districts:
Costa Mesa Sanitary District
Midway City Sanitary District
Yorba Linda Water District
Revenue Area No. 14
Orange County (unincorporated areas)
Cities:
Irvine
Orange
Tustin
Special District:
Irvine Ranch Water District
Governing Body:
Authorized Full -Time Equivalent Employees:
Operational Date:
Authority:
Services:
Service Area:
Population Served:
Total Miles of Sewers (including force mains):
On -Plant Pumping Stations:
Off -Plant Pumping Stations:
Huntington Beach
Santa Ana
Irvine
Seal Beach
La Habra
Stanton
La Palma
Tustin
Los Alamitos
Villa Park
Newport Beach
Westminster
Orange
Yorba Linda
Placentia
25-member Board of Directors
639
July 1, 1954
California Health & Safety Code Section 4700 et. seq.
Wastewater collection, treatment, and disposal
479 square miles
2.6 million
388 miles
2
15
Wastewater System Treatment Capacities (Million Gallons per Day)
Actual Flows Existing Primary Existing Secondary
FY21-22 Treatment Capacity Treatment Capacity
Plant 1 120 208 182
Plant 2 59 168 150
Total 7272 M 332
Source: Orange County Sanitation District's Financial Management Division.
:1
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
OTHER DATA TRENDS
Information within this section consists of other data and trends including additional
annual disclosures as required by the Orange County Sanitation District's debt
covenants beyond what is allowed to be reported in the Statistical Section.
81
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Cash and Investment Portfolio
As of June 30, 2022
Net Unrealized
Cost Market Value Gain/(Loss)
Shares Par Base Base % of Total Base
INVESTMENT PORTFOLIO:
CASH & CASH EQUIVALENTS (U.S. DOLLAR):
FIRST AMERICAN SHORT TERM FDS 9,540,571 9,540,571 9,540,571 1.07% -
SUBTOTAL - CASH & CASH EQUIVALENTS 9,540,571 9,540,571 9,540,571 1.07% -
FIXED INCOME SECURITIES (U.S. DOLLAR):
CONSUMER DISCRETIONARY
24,554,000
24,578,759
23,545,990
2.63%
(1,032,769)
CONSUMER STAPLES
6,955,000
6,950,043
6,737,402
0.75%
(212,641)
FINANCE
113,700,000
114,087,704
108,406,909
12.12%
(5,680,795)
FIXED INCOME FUNDS OTHER
2,500,000
2,479,920
2,482,200
0.28%
2,280
HEALTH CARE
6,000,000
5,853,343
5,619,260
0.63%
(234,083)
INDUSTRIAL
7,135,000
7,137,964
7,130,624
0.80%
(7,340)
INFORMATION TECHNOLOGY
19,922,000
20,678,047
19,771,315
2.21%
(906,732)
MTG RELATED SECURITY
95,040,678
95,671,610
92,674,850
10.36%
(2,996,760)
PRIVATE PLACEMENTS
15,170,000
15,038,222
13,858,374
1.55%
(1,179,848)
SHORT TERM FUNDS
27,000,000
26,928,364
26,838,180
3.00%
(90,184)
SUPRANATIONAL
54,940,000
54,660,227
51,217,412
5.72%
(3,442,815)
U.S. AGENCY
152,325,000
153,961,317
147,124,764
16.44%
(6,836,553)
U.S. GOVERNMENT
374,753,180
371,829,526
362,075,074
40.47%
(9,754,452)
UTILITY
12,660,440
12,515,720
12,781,600
1.43%
265,880
U.S. GOVERNMENT TIPS
5,000,000
5,003,303
4,955,860
0.55%
(47,443)
SUBTOTAL - FIXED INCOME SECURITIES
917,655,298
917,374,069
885,219,814
98.93%
(32,154,255)
TOTAL INVESTMENT PORTFOLIO $
927,195,869
926,914,640
894,760,385
100.00%
$ (32,154,255)
DEMAND DEPOSITS AND CASH ON HAND
4,222,079
4,222,079
MONIES HELD WITH FISCAL AGENTS
50,641
50,641
MONIES WITH THE LOCAL AGENCY INVESTMENT
FUND
72,879,233
71,940,943
MONIES WITH THE SECTION 115 TRUST
14,971,231
13,061,999
TOTAL CASH AND INVESTMENTS
$ 1,019,037,824
$ 984,036,047
Source: US Bank and Orange County Sanitation District's Financial Management Division.
82
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Tax Rate
OC San
1958
General
Fiscal Basic Obligation Total
Year Levu Rnnrk Tax Rnfa
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
OC San's
Average
Share of
Basic Levy
1.64%
1.65%
1.63%
1.62%
1.61 %
1.59%
1.59%
1.58%
1.59%
1.61 %
Notes
In 1978, California voters passed Proposition 13 which set the property tax rate at a
1.00% fixed amount of assessed value. This 1.00% is shared by all taxing agencies
within which the subject property resides. In addition to the 1.00% fixed amount,
property owners were charged taxes as a percentage of assessed property values for
the payment of OC San general obligation bonds (which were paid in full in fiscal year
1998-99).
Source: Orange County Auditor -Controller's Office.
83
Table of Contents
$600,000,000
$500,000,000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
Fiscal
Year
ORANGE COUNTY SANITATION DISTRICT
Assessed and Estimated Actual Value of Taxable Property
(Dollars In Thousands)
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
O Secured
Secured Unsecured
O Unsecured
Total
Percent
Change in
Assessed
Value
2012-13
$ 310,451,986
$ 5,901,040
$ 316,353,026
2.48%
2013-14
323,064,994
6,220,505
329,285,499
4.09%
2014-15
343,102,030
7,378,643
350,480,673
6.44%
2015-16
365,267,850
6,936,768
372,204,618
6.20%
2016-17
385,137,024
6,642,312
391,779,336
5.26%
2017-18
409,310,248
6,990,609
416,300,857
6.26%
2018-19
435,911,818
7,213,037
443,124,855
6.44%
2019-20
461,217,033
7,489,937
468,706,970
5.77%
2020-21
486,958,908
7,289,732
494,248,640
5.45%
2021-22
506,709,716
9,445,337
516,155,053
4.43%
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total
maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the
assessed value of property may be increased by an inflation factor which is limited to a maximum
increase of 2%. With a few exceptions, property is only reassessed at the time that it is sold to a new
owner. At that point, the new assessed value is reassessed at the purchase price of the property sold.
The assessed valuation data shown above represents the only data currently available with respect to
the actual market value of taxable property and is subject to the limitations described above.
Consequently, the assessed and estimated values are the same.
Source: Orange County Auditor -Controller's Office.
84
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Property Tax and User Fee Levies and Collections
(Dollars in Thousands)
Last Ten Fiscal Years
$420,000
$400,000
$380,000
$360,000
$340,000
$320,000
$300,000
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
❑ Total Tax and User Fee Levy ❑ Total Tax and User Fee Collection
Total Tax Current Tax
Fiscal and User and User Fee
Year Fee Levy Collection
2012-13 $340,298 $ 340,156
2013-14 356,607 356,108
2014-15 362,978 362,927
2015-16 371,502 370,170
2016-17 381,226 380,078
2017-18 386,538 385,673
2018-19 394,641 393,809
2019-20 401,604 400,865
2020-21 405,878 405,053
2021-22 418,400 416,869
(1)
Percent
Total Tax
% of Total
% of
Pass -
of Levy
Delinquent
and User Fee
Collection
Outstanding Delinquencies
Through
Collected
Collection
Collection
to Levy
Delinquencies
to Levy
Payments
99.96
$ 64
$ 340,220
99.98
$ 142
0.04
$ 14,687
99.86
76
356,184
99.88
499
0.14
7,274
99.99
108
363,035
100.02
51
0.01
8,447 (2)
99.64
637
370,807
99.81
1,332
0.36
9,199 (2)
99.70
608
380,686
99.86
1,148
0.30
9,751
99.78
741
386,414
99.97
865
0.22
11,353
99.79
786
394,595
99.99
832
0.21
12,524
99.82
931
401,796
100.05
739
0.18
13,469
99.80
1,035
406,088
100.05
825
0.20
15,034
99.63
1,177
418,046
99.92
1,531
0.37
18,433
Notes
(1) Upon dissolution of California redevelopment agencies during fiscal year 2011-12, property tax increment formerly remitted
to OC San by its member city redevelopment agencies was instead deposited into the newly formed Redevelopment Property
Tax Trust Fund (RPTTF) from which the Auditor -Controller makes disbursements on behalf of the successor agencies. There
is no tax levy associated with these collections; thus, they have been excluded from the "% of Total Collection to Levy"
calculation.
(2) In fiscal year 2014-15 and 2015-16, the County did not bill user fees for wholly exempt agencies not subject to property
taxes. In fiscal year 2014-15 and 2015-16, OC San internally billed user fees of $5 million and $4.5 million, respectively, to
wholly exempt agencies. These amounts have been excluded from the levy and collection amounts above, as only tax and
user fees included on County property tax billings are shown in this schedule.
Source: Orange County Auditor -Controller's Office.
85
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Property Value and Construction
Covering The Entire County of Orange (1)
(Dollars In Thousands)
Last Ten Fiscal Years
Non -
Assessed
Residential
Residential
Property Value (2)
Construction (3)
Construction (3)
Fiscal
Calendar
No. of
Year
Value
Year
Value
Units
Value
2012-13
$ 432,902,274
2013
$ 1,521,280
10,453
$ 2,653,728
2013-14
447,749,156
2014
1,993,154
10,636
2,640,484
2014-15
476,303,290
2015
2,196,000
10,897
2,834,000
2015-16
504,650,360
2016
2,487,000
12,134
3,160,000
2016-17
531,052,158
2017
2,062,000
10,294
3,217,000
2017-18
563,662,044
2018
3,507,000
8,105
2,776,000
2018-19
598,901,016
2019
3,144,000
10,294
2,650,000
2019-20
632,758,256
2020
1,929,000
5,907
1,884,000
2020-21
663,241,179
2021
1,802,000
7,471
2,368,000
2021-22
689,088,931
2022
1,822,000
6,599
2,157,000
Total
Construction
Value (3)
$ 4,175,008
4,633,638
5,030,000
5,647,000
5,279,000
6,283,000
5,794,000
3,813,000
4,170,000
3,979,000 (4)
Notes and Data Sources
(1) - The Orange County Sanitation District services 479 square miles or 60% of the total 799 square miles
that make up the boundaries of Orange County.
(2) - Data Source: Orange County Auditor -Controller's Office.
(3) - Data Source: A. Gary Anderson Center for Economic Research, Chapman University.
(4) - Forecasted number.
:.
Table of Contents
ORANGE COUNTY SANITATION DISTRICT
Insurance in Force
As of June 30, 2022
Type
Insurer
Deductible
Limit
All -Risk Property
Fire and Other Perils
Public Entity Property
$500,000 per
$1 billion / occurrence
Insurance Program
occurrence
(multiple insurers)
Flood
Public Entity Property
$1 million per
$25 million / occurrence
Insurance Program
occurrence
Boiler & Machinery
Public Entity Property
$25,000 to
$100 million / occurrence
Insurance Program
$350,000
(multiple insurers)
Earthquake
Multiple insurers
5% per structure,
$25 million
(certain structures only)
min. $5 million
Crime Insurance
Alliant Crime Insurance Program
$25,000
$5 million
Cyber Insurance
Lloyd's of London (Beazley)
$250,000
$2 million
$500,000 for Breach Response
Excess
Great American Insurance Co.
$750,000
$40 million / occurrence
General Liability
(first $10 million layer);
and annual aggregate
Gemini Insurance Co.
($15 million layer, excess $10 million)
Arch Insurance Company
($5 million layer, excess $25 million)
Great American Insurance Co.
($10 million layer, excess $30 million)
Travel & Accident
Federal Insurance Co.
None
Accidental Death & Dismembermen
Class 1: Elected Officials
$500,000 per occurrence
Class 2: Employees 1OX annual
1 OX annual salary, up to
$500,000 per occurrence
Excess Workers'
Public Risk Innovation, Solutions,
$1 million
Unlimited statutory coverage
Compensation
and Management (PRISM)
each accident
each accident, each employee
$4 million employer's liability
Pollution Liability
Ironshore Specialty Insurance Co.
$250,000
$10 million per loss
Watercraft
Liability Atlantic Specialty Insurance Co. $2,500 bodily injury $10 million
$10,000 all other
Hull & Machinery Atlantic Specialty Insurance Co. $10,000 $600,000
Pollution Liability Great American Insurance Co. $25,000 $5 million
Source: Orange County Sanitation District's Financial Management Division.
87
(THIS PAGE INTENTIONALLY LEFT BLANK)
::
ORANGE COUNTY SANITATION DISTRICT
FINANCIAL MANAGEMENT DIVISION
10844 Ellis Avenue
Fountain Valley, California 92708-7018
714.962.2411 1 www.ocsan.gov
06/30/22
11/1/2022
Annual Comprehensive
Financial Report (ACFR)
For the Year Ended June 30, 2022
1
• Provides financial condition and performance
for fiscal year ended June 30, 2022.
• GFOA Excellence in Financial Reporting Award —
27 consecutive years.
• Independent auditor — Davis Farr, LLP.
2
11/1/2022
Total Net Position: $2.8 billion
(Dollars in thousands)
June 30,
Percentage
June 30,
2021,
Increase
Increase
2022
as restated
(Decrease)
(Decrease)
Total assets & deferred outflows
4,018,078
3,853,516
164,562
4.3%
Total liabilities & deferred inflows
1,202,891
1,143,134
59,757
5.2%
Net position
Net investment in capital assets
1,825,490
1,740,102
85,388
4.9%
Restricted for OCERS pension benefits
108,179
63,748
44,431
69.7%
Unrestricted
881,518
906,532
(25,014)
-2.8%
Total net position
$ 2,815,187
$ 2,710,382
$ 104,805
3.9%
3
Increase in Net Position: $104.8 million
(Dollars in thousands)
June 30,
Percentage
June 30,
2021,
Increase
Increase
2022
as restated
(Decrease)
(Decrease)
Total revenues
420,786
459,815
(39,029)
-8.5%
Total expenses
342,064
322,379
19,685
6.1%
Income before capital contributions
78,722
137,436
(58,714)
-42.7%
Capital contributions
26,083
33,936
(7,853)
-23.1%
Increase in net position
104,805
171,372
(66,567)
-38.8%
Beginning net position
2,710,382
2,539,010
171,372
6.7%
Ending net position
$ 2,815,187
$ 2,710,382
$ 104,805
3.9%
4
ACFR page 5
ACFR page 7
2
11/1/2022
(Dollars in Thousands)
$3.000.000
$2,500.000
$2.000.000
$1.500 000 II
$1.000 000
$500 000
$0
2012-13 20'r314 2014-15 2015'16 2016-17 2011-18 2018-19 2019-20 2020-21 2021-22
® Net Investment in Capital Assets 0 Restricted for Pension Benefits D Unrestricted AC F R page 62
5
(Dollars in thousands)
June 30, June 30, Increase %Increase
2022 2021 (Decrease) (Decrease)
Operating expenses
Salaries and benefits
57,004
74,772
(17,768)
-23.8%
Utilities
11,045
9,789
1,256
12.8%
Supplies, repairs and maintenance
47,082
47,545
(463)
-1.0%
Contractual services
25,114
22,653
2,461
10.9%
Feasibility studies
6,490
5,704
786
13.8%
Other
9,379
7,555
1,824
24.1%
Total operating expenses $
156,114 $
168,018 $
(11,904)
-7.1%
I
ACFR page 13
5
3
11/1/2022
Major capital asset additions:
• $35.7 million Headquarters Complex (P1-128)
• $32.1 million Headworks Rehabilitation at Plant No. 1 (P1-105)
• $23.6 million Ocean Outfall System Rehabilitation (J-117)
• $20.9 million Primary Treatment Rehabilitation at Plant No. 2 (132-98)
• $ 9.0 million Rehabilitation of Western Regional Sewers (3-64)
ACFR page 9
Cash and investments: $984.0 million — Increase: $23.4 million
(Dollars in thousands)
Cash on hand
Deposits with financial institutions
Managed portfolio - cash and investments
Held by trustees - cash and investments
June 30,
June 30,
Increase
%Increase
2022
2021
(Decrease)
(Decrease)
3
7
(4)
-57.1 %
4,219
1,649
2,570
155.9%
966,701
958,983
7,718
0.8%
13,113
0
13,113
100.0%
Total cash and investments $ 984,036 $ 960,639 $ 23,397 2.4%
ACFR page 21
I
M
11/1/2022
11/1/2022
Audit Reports Issued
Annual Comprehensive Financial Report
❑ Unmodified audit opinion
❑ Emphasis of opinion for implementation of lease
standard
❑ The financial statements and footnotes are
presented fairly, in all material respects, in
accordance with generally accepted accounting
principles
* I Davis
11/1/2022
Audit Reports Issued
❑ Government Auditing Standards Letter
❑ No material instances of noncompliance
❑ No material weaknesses or significant deficiencies
in internal controls
_ Agreed Upon Procedures
❑ Appropriations (GANN) Limit
❑ Indemnity Agreement
Bond Comfort Letters
01DavisFarr
3
Audit Reports Issued
Communication to Those in Governance
❑Auditor risk assessment:
Implementation of new lease accounting standard
Issuance of debt: 2021 A and 2022A Wastewater
Refunding Revenue Bonds
❑ Capital asset transactions
❑ No auditor detected errors in the accounting records
❑ No difficulties in performing our audit procedures
* I Davis
4
2
11/1/2022
5
Overview of Audit Approach
Substantive testing of all material assets and
liabilities using 3rd party confirmations and
other procedures
Evaluation of internal controls for key
accounting cycles and information systems
Analytical testing of revenues and
expenditures with substantive testing when
the change from the prior year was material
Compliance testing of investments, debt, and
disbursements
DavisFarr
Upcoming Changes in Standards
GASB 94: Public -Private and Public -Public
Partnership and Availability Payment
Arrangements — FY 22/23
GASB 96: Subscription -Based Information
Technology Arrangements — FY 22/23
GASB 100: Accounting Changes and Error
Corrections — FY 23/24
GASB 101: Compensated Absences — FY
24/25
•p• I Davis
3
11/1/2022
Questions?
11
Jennifer Farr, CPA I Partner
Davis Farr LLP 1 18201 Von Karman Ave, Suite 1100 1 Irvine, CA 92612 ,0, Dav is �a r r
Phone: 949.474.2020 1 Email:jfarr@davisfarr.com
Administration Building
ADMINISTRATION COMMITTEE 10844 Ellis Avenue
SAIV Fountain Valley, CA 92708
(714) 593 7433
ORANGE COUNTY SANITATION DISTRICT
Agenda Report
File #: 2022-2606 Agenda Date: 11/9/2022 Agenda Item No: 8.
FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT:
HUMAN RESOURCES DEPARTMENT OVERVIEW
GENERAL MANAGER'S RECOMMENDATION
RECOMMENDATION:
Information Item.
BACKGROUND
Each month, staff provides an informational presentation on topics of interest to the Board of
Directors. This month's topic: Orange County Sanitation District Human Resources Department
Overview.
RELEVANT STANDARDS
• Cultivate a highly qualified, well -trained, and diverse workforce
• Plan for and execute succession, minimizing vacant position times
• Provide professional growth and development
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda
package:
• Presentation
Orange County Sanitation District Page 1 of 1 Printed on 11/1/2022
powered by LegistarTIM
11/1/2022
Overview
Employee &
Labor HR Operations
Relations
Risk Management
f 1
2
Highlight: OC San University
OC San Business Systems
EMMEW
Leadership
Technology
Communication
Partnerships for the Future
Highlight: Labor Relations
'I , -,Mw� .. - I"- -�, I
3 Recognized Unions
6 Collective Bargaining
Agreements
3-Year Agreements (through
2025)
11/1/2022
100 <: 1p4%a. 100%
8c"
6Q_ 58%
51%
44%
40% 40%
40% 33% 33% 33%
29%
23%
20% — —
0%
EXECUTIVE MANAGER SUPERVISOR PROFESSIONAL PARA- TRADES
PROFESSIONAL
■ 2022 ■ 2025
Highlight: Resilient Workforce
� rt rr
Vocational CFC San "U"
Internship
Student Partnerships
Internship
Recruitment
and Selection
Employee
Development
6
11/1/2022
Highlight: Centralized Training
r6
r
I
ACWA
APWA
AQMD
ASCE
BOD
CARB
CASA
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
Association of California
LOS
Water Agencies
American Public Works
MGD
Association
Air Quality Management
District
MOU
American Society of Civil
NACWA
Engineers
Biochemical Oxygen Demand
NEPA
California Air Resources
Board
NGOs
California Association of
Sanitation Agencies
NPDES
CCTV Closed Circuit Television I NWRI
California Environmental
CEQA
Quality Act
O & M
Capital Improvement
CIP
Program
OCCOG
California Regional Water
CRWQCB
Quality Control Board
OCHCA
CWA
Clean Water Act
OCSD
California Water Environment
CWEA
Association
OCWD
EIR
Environmental Impact Report
OOBS
EMT Executive Management Team I OSHA
EPA US Environmental Protection I PCSA
Agency
FOG Fats, Oils, and Grease I PDSA
gpd gallons per day
PFAS
GWRS Groundwater Replenishment
PFOA
System
ICS Incident Command System
PFOS
IERP Integrated Emergency
POTW
Response Plan
JPA Joint Powers Authority Ippm
LAFCO Local Agency Formation I PSA
Commission
Level Of Service RFP Request For Proposal
Million Gallons Per Day RWQC Re Tonal Water Qualit
Memorandum of SARFP
Understanding
National Association of Clean SARI
Water Agencies
National Environmental Policy SARW
Act
Non -Governmental SAWP
Organizations
National Pollutant Discharge SCADA
Elimination System
B g y
Control Board
A Santa Ana River Flood
Protection Agency
Santa Ana River
Interceptor
Santa Ana Regional Water
QCB Quality Control Board
A Santa Ana Watershed
Project Authority
Supervisory Control And
Data Acquisition
National Water Research Southern California
Institute SCAP Alliance of Publicly Owned
Treatment Works
Operations & Maintenance SCA South Coast Air Qualit
Orange County Council of SOC
Governments
Orange County Health Care SRF
Agency
Orange County Sanitation SSM
District
Orange County Water District ISSO
QMD y
Management District
WA South Orange County
Wastewater Authority
Clean Water State
Revolving Fund
P Sewer System
Management Plan
Sanitary Sewer Overflow
Ocean Outfall Booster Station 1SWRCState Water Resources
B
Occupational Safety and TDS
Health Administration
Professional
Consultant/Construction TMDL
Services Agreement
Professional Design Services TSS
Agreement
Per- and Polyfluoroalkyl
Substances WDR
Perfluorooctanoic Acid IWEF
Perfluorooctanesulfonic Acid WERF
Publicly Owned Treatment WIFIA
Works
parts per million 1WIIN
Professional Services I
WRDA
Agreement
Control Board
Total Dissolved Solids
Total Maximum Daily Load
Total Suspended Solids
Waste Discharge
Requirements
Water Environment
Federation
Water Environment &
Reuse Foundation
Water Infrastructure
Finance and Innovation Act
Water Infrastructure
Improvements for the
Nation Act
Water Resources
Development Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS — A secondary biological wastewater treatment process where bacteria reproduce at a high
rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS — The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also
known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD) — The amount of oxygen used when organic matter undergoes decomposition by
microorganisms. Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS — A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process.
This high -quality product can be recycled as a soil amendment on farmland or further processed as an earth -like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes
treatment improvements, additional capacity, and projects for the support facilities.
COLIFORM BACTERIA — A group of bacteria found in the intestines of humans and other animals, but also occasionally found
elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary
wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP) — A type of financing where an investor purchases a share of the lease revenues of
a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater
contaminants.
DILUTION TO THRESHOLD (D/T) — The dilution at which the majority of people detect the odor becomes the D/T for that air
sample.
GREENHOUSE GASES (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and
ozone gases that are considered the cause of global warming ("greenhouse effect").
GROUNDWATER REPLENISHMENT SYSTEM (GWRS) — Ajoint water reclamation project that proactively responds to Southern
California's current and future water needs. This joint project between the Orange County Water District and OCSD provides 70
million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE (LOS) — Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer -causing agent. It has been found in the GWRS
process and is eliminated using hydrogen peroxide with extra ultra -violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP) —An alliance of the NACWA and WEF, with advisory support from the EPA. NBP
is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond
regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved
communications that lead to public acceptance.
PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) — A large group (over 6,000) of human -made compounds that are
resistant to heat, water, and oil and used for a variety of applications including firefighting foam, stain and water-resistant clothing,
cosmetics, and food packaging. Two PFAS compounds, perfluorooctanesulfonic acid (PFOS) and perfluorooctanoic acid (PFOA)
have been the focus of increasing regulatory scrutiny in drinking water and may result in adverse health effects including
developmental effects to fetuses during pregnancy, cancer, liver damage, immunosuppression, thyroid effects, and other effects.
PERFLUOROOCTANOIC ACID (PFOA) — An ingredient for several industrial applications including carpeting, upholstery,
apparel, floor wax, textiles, sealants, food packaging, and cookware (Teflon).
PERFLUOROOCTANESULFONIC ACID (PFOS) — A key ingredient in Scotchgard, a fabric protector made by 3M, and used in
numerous stain repellents.
PLUME — A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS (POTW) — A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR (SARI) LINE — A regional brine line designed to convey 30 million gallons per day of non -
reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment.
SANITARY SEWER — Separate sewer systems specifically for the carrying of domestic and industrial wastewater.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) — Regional regulatory agency that develops plans and
regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT — Biological wastewater treatment, particularly the activated sludge process, where bacteria and
other microorganisms consume dissolved nutrients in wastewater.
SLUDGE — Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS (TSS) — The amount of solids floating and in suspension in wastewater.
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
TRICKLING FILTER — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime
on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and
oceans.
WASTEWATER — Any water that enters the sanitary sewer.
WATERSHED — A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River
Watershed.