Item: Board of Directors...Officials will continue to monitor employment and inflation indicators, among other things, in determining future adjustments. However, based on projection

Item: 6

Board of Directors

November 16, 2018 Action Requested: Information

Quarterly Finance Report and Update on Financial Markets – Through September 2018

Overview

Staff provides quarterly briefings on the latest

developments in the financial markets, economy, sales

tax revenues, and the strategies being explored and

implemented to minimize possible impacts to the

TransNet Program; and a quarterly report on

investments as required per Board Policy No. 003:

Investment Policy.

Key Considerations

• The local economy is near “full employment,” with the San Diego economy adding close to 27,000 jobs

in the past year, bringing unemployment to a very low 3.1 percent in August 2018, down from

3.9 percent in August 2017.

• The bull run in the U.S. equity market continued in the last quarter, with equity indices reaching all-time

highs. However, markets plummeted in October, slipping into what currently is believed to be correction

territory. The volatility, in part, is attributable to an increase in borrowing costs for corporations and

individuals due to the Federal Open Market Committee’s recent rate hikes and anticipated future hikes.

• SANDAG held $1.124 billion in a number of investment accounts as of September 30, 2018. This

investment portfolio, together with the authorized short-term Commercial Paper Program, will provide

the necessary liquidity to meet expenditure requirements for the next six months.

• SANDAG staff has distributed a solicitation for underwriting services for the sale of Grant Anticipation

Notes (GANs), anticipated in 2019. The proceeds from the GANs sale will be used for construction

expenses associated with the Mid-Coast Corridor Transit Project.

• In May 2018, the California Department of Tax and Fee Administration (CDTFA), formerly known as the

California Board of Equalization, implemented a new automated system for processing, reporting, and

distributing sales tax revenues to agencies throughout the state. As a result, several thousand tax returns

were not processed in a timely manner. An updated rate of growth for sales tax revenues is expected to

be available as part of the next quarterly report.

Kim Kawada, Chief Deputy Executive Director

Key Staff Contact: André Douzdjian, (619) 699-6931, [email protected]

Ray Major, (619) 699-1930, [email protected]

Lisa Kondrat-Dauphin, (619) 699-1942, [email protected]

Attachments: 1. Financial Market Review

2. Local Economy and Sales Tax Revenues

3. SANDAG Investments and Debt Portfolio

Highlights:

SANDAG held $1.124 billion in several

investment accounts as of

September 30, 2018.

The San Diego economy is near

“full employment,” with the local economy

adding close to 27,000 jobs in the past year.

Attachment 1

2

Financial Market Review

As the end of 2018 nears, the treasury yield curve remains near its flattest level in more than a decade.

Several rate increases by the Federal Open Market Committee (FOMC) as well as anticipation of additional

increases have driven short-term rates higher. While long-term rates also have increased, concerns about

escalation of trade disputes, emerging market currency risks, and a waning of fiscal stimulus sustained

demand for longer-term paper, keeping long-term rates in check. As was widely anticipated, at the

FOMC September meeting, the officials voted to raise rates for the third time in 2018, targeting a range of

2 to 2.25 percent. Officials will continue to monitor employment and inflation indicators, among other

things, in determining future adjustments. However, based on projection materials released with the

September statement, the vast majority of FOMC officials anticipate one more rate hike at its final meeting of

the year in December, and two to three additional rate hikes in 2019. Notably, the Federal Reserve ended an

era of accommodative monetary policy by removing the term “accommodative” from its policy statement

released after the meeting.

The bull run in the U.S. equity market continued in the last quarter with equity indices reaching all-time

highs. However, markets plummeted in October slipping into what currently is believed to be correction

territory. The S&P 500 fell more than 8 percent from its 2018 peak in September. The volatility, in part, is

attributable to increases in borrowing costs for corporations and individuals due to FOMC’s recent rate hikes

and anticipated future hikes.

The second-quarter Gross Domestic Product (GDP) grew at an annualized rate of 4.2 percent, the fastest

since 2014. Growth in the third quarter is expected to slow a bit, but remain healthy. However, when it

comes to sustainable long-term growth, the federal budget deficit and the trade deficit will continue to be

areas of concern. Labor market conditions remain strong, adding an average of more than 200,000 jobs per

month this year. The unemployment rate dropped to a 48-year low of 3.7 percent. Many of the inflation

indicators are at or near the Federal Reserve’s two percent target but may go over in the coming months with

increases in the cost of raw materials from tariffs and rising oil prices. Alleviating some trade concerns, the

U.S., Canada and Mexico reached agreement on updates to NAFTA. However, ongoing concerns about a

trade war with China, a disorderly Brexit, Italian budget concerns, Iran sanctions, and a Turkish debt crisis are

among some of the broader geopolitical risks affecting the national and global markets.

Since the start of the year, the AAA Municipal Market Data (MMD) index (industry-accepted index for tax-

exempt bonds) rose by at least 47 basis points (bps), or .47 percent on the short-end of the yield curve and as

much as 77 bps or 0.77% on the long-end. The current 30-year AAA MMD bond yield is 3.32 percent.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

1-Y

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3-Y

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Dec-16 Dec-17 Oct-18 (Max 2018) Current (10/26/2018)

AAA MMD Yield Curve Movement

3

Municipal Market Supply 1

Total year-to-date tax-exempt municipal

bond supply for 2018 is $215.5 billion,

down 16 percent from the same point in

calendar year 2017. The new tax

legislation, which was passed last

December and became effective in

January, eliminated the ability to advance

refund bonds on a tax-exempt basis. Over

the last decade, advance refundings

constituted roughly 20 percent of the tax-

exempt market, and market participants

expect about a 10 percent to 15 percent

decline in volume over the next few years

due to the loss of tax-exempt advance refundings.

1 Issuance data from Thomson Reuters 2 Bloomberg survey compilation as of October 29, 2018

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

-20 bps

-15 bps

-10 bps

-5 bps

0 bps

5 bps

10 bps

15 bps

20 bps

25 bps

Increase from Previos Day (Left Axis)

Decrease from Previous Day (Left Axis)

30-Year AAA MMD (Right Axis)

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

30 Year MMD

Benchmark Tax-Exempt Rate History

(January 4, 1993 to Octobe 26, 2018)Benchmark Tax-Exempt Rate History

(September 1, 2016 to August 24, 2018)

$0

$5

$10

$15

$20

$25

$30

$35

$40

Jan Feb Mar Apr May Jun Jul Aug Sept

Billio

ns

2017 2018

Issuance Volume

4

Interest Rate Forecasts

The table below provides an average of interest rate forecasts by industry professionals. These are surveyed

and compiled by Bloomberg. The two-year United States Treasury (UST) rate is forecast to increase to 3.26

percent by the end of 2019. The ten-year UST rate is forecast to increase to 3.41 percent by the end of 2019.

The 30-year UST rate is forecast to increase to 3.64 percent by the end of 2019.

Forecast 2018 2019 2020

10/29/18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

30-Year UST 3.34% 3.35% 3.43% 3.51% 3.56% 3.64% 3.70% 3.75% 3.77% 3.74%

10-Year UST 3.09% 3.17% 3.26% 3.33% 3.36% 3.41% 3.44% 3.48% 3.50% 3.46%

2-Year UST 2.82% 2.89% 3.02% 3.13% 3.21% 3.26% 3.31% 3.33% 3.34% 3.28%

3M London Interbank

Offered Rate 2.52% 2.61% 2.79% 2.96% 3.10% 3.17% 3.24% 3.24% 3.26% 3.21%

Federal Funds Target

Rate Upper Bound 2.25% 2.50% 2.70% 2.90% 3.05% 3.10% 3.05% 3.05% 3.05% 3.05%

Federal Funds Target

Rate Lower Bound 2.00% 2.23% 2.45% 2.66% 2.80% 2.85% 2.81% 2.81% 2.81% 2.79%

Attachment 2

5

Local Economy and Sales Tax Revenues

The San Diego economy added close to 27,000 jobs in in the past year, bringing unemployment to a very low

3.1 percent in August 2018, down from 3.9 percent in August 2017. The local economy is near “full

employment,” and this has begun to show in both lower numbers of jobs added and in wage growth, as

San Diego regional weekly pay grew 3.9 percent in the last year, and more-recent national figures have

shown this to be a widespread trend. This recent upturn has led to some growth in consumer spending, as

taxable retail sales were up 7.4 percent in the first quarter of 2018 versus the first quarter of 2017. Consumer

spending makes up more than 70 percent of the economy and is a primary driver of sales tax revenue.

In additional metrics, San Diego has continued to attract venture capital, more than $1.2 billion in 2017, and

more than $900 million in the first two quarters of 2018, with the largest amount (just over half) going to

healthcare/life sciences firms. Construction accelerated its pace, adding roughly 10,000 units in 2017 for the

third year in a row, and roughly 8,400 permits in the first 9 months of 2018. This better pace is roughly the

number needed to keep pace with population growth (about 12,000). A decade of low construction has led

to steadily rising rents and home prices that create a situation where only roughly a quarter of San Diego

households could afford a median-priced home. Median home prices in San Diego County hit a record high

of $580,000 in July, but have recently backed off slightly both locally and nationally.

TransNet revenues have increased 3.9 percent over the last four quarters (through March 2018), and the first

quarter of 2018 was more than 5.6 percent better than the first quarter of 2017. Strong gains were seen in

the construction (8.8% annual growth) and food (4.2%) categories, while transportation and

business-to-business both grew less than 3 percent year-over-year (though business-to-business tends to be

volatile). TransNet revenues grew 3.53 percent in FY 2018, exceeding expectations by .8 percent

($294.5 million vs. $292.1 million), and the current approved forecast for FY 2019 is $300.9 million, which

would be roughly 2.2 percent growth.

The following tables provide a breakdown of sales tax collected with a comparison by month for the past two

fiscal years and the annual revenue beginning in FY 2009 (first year of the TransNet Extension Ordinance):

FY 2017

Revenue

FY 2018

Revenue Annual Revenue

July 18,897,500$ 19,047,000$

August 25,196,600 25,396,000 FY 2009 221,991,360$

September 26,243,296 28,962,091 FY 2010 204,191,747

October 19,246,700 19,804,700 FY 2011 221,304,015

November 25,662,200 26,406,200 FY 2012 236,947,112

December 27,284,919 29,269,088 FY 2013 247,221,161

January 19,931,300 20,931,500 FY 2014 260,114,931

February 26,575,100 27,908,700 FY 2015 268,840,550

March 26,761,222 26,433,925 FY 2016 275,500,023

April 17,548,100 18,363,100 FY 2017 284,456,260

May 23,397,500 29,430,919 FY 2018 294,501,324

June 27,711,823 22,548,101

284,456,260$ 294,501,324$ Cumulative 2,515,068,483$

The TransNet Extension Quarterly Report (Attachment 4) provides the sales tax allocation and disbursement

information for the quarter ending September 30, 2018.

TransNet EXTENSION QUARTERLY REPORT

FISCAL YEAR: QUARTER:

TransNet Allocations Fund Disbursements

Sales Tax Allocations Other

Income

Total

Allocation

Program Disbursements Debt Service

PROGRAM & RECIPIENT This Quarter FY to Date Program to Date Program to DateProgram to Date This Quarter FY to Date Program to Date This Quarter FY to Date Program to Date Program to Date

Total

Disbursements

FY 2019 1

1

23

SANDAG Admin $723,193 $723,193 $25,873,878 $151,581 $26,025,459 $(400,000) $(400,000) $(25,651,634) $0 $0 $0 $(25,651,634)

ITOC $99,755 $99,755 $2,225,605 $27,072 $2,252,677 $(8,875) $(8,875) $(1,939,739) $0 $0 $0 $(1,939,739)

Bicycle/Pedestrian/Neighborhood Safety $1,446,387 $1,446,387 $51,747,757 $3,709,499 $55,457,256 $(2,337,887) $(2,337,887) $(66,728,032) $(254,804) $(254,804) $(2,215,459) $(68,943,491)

Major Corridor Capital Projects $26,619,004 $26,619,004 $952,865,424 $(89,635,485) $863,229,939 $79,038,229 $79,038,229 $(2,394,728,923) $(25,505,087) $(25,505,087) $(810,427,852) $(3,205,156,775)

Major Corridor Project EMP $3,082,200 $3,082,200 $110,331,786 $42,523,580 $152,855,366 $(93,695) $(93,695) $(280,734,594) $(4,318,687) $(4,318,687) $(153,429,296) $(434,163,890)

Local Project EMP $1,260,900 $1,260,900 $45,135,731 $485,542 $45,621,273 $(223) $(223) $(8,448,118) $0 $0 $0 $(8,448,118)

Smart Growth Incentive Program $1,471,050 $1,471,050 $52,658,352 $1,547,890 $54,206,242 $(260) $(260) $(26,331,862) $0 $0 $0 $(26,331,862)

Local Streets and Roads

City of Carlsbad $744,399 $744,399 $25,676,286 $8,548,638 $34,224,924 $(640,131) $(640,131) $(17,254,158) $0 $0 $0 $(17,254,158)

City of Chula Vista $1,460,163 $1,460,163 $51,373,546 $4,428,090 $55,801,636 $(218,993) $(218,993) $(45,833,927) $0 $0 $0 $(45,833,927)

City of Coronado $152,386 $152,386 $5,406,196 $860,750 $6,266,946 $(26) $(26) $(4,803,282) $0 $0 $0 $(4,803,282)

City of Del Mar $49,856 $49,856 $1,920,877 $167,482 $2,088,359 $(7) $(7) $(4,811,061) $(48,955) $(48,955) $(1,492,451) $(6,303,512)

City of El Cajon $578,307 $578,307 $21,599,430 $2,361,209 $23,960,639 $(101) $(101) $(20,110,277) $0 $0 $0 $(20,110,277)

City of Encinitas $409,692 $409,692 $15,119,154 $3,670,641 $18,789,795 $(71) $(71) $(14,159,903) $0 $0 $0 $(14,159,903)

City of Escondido $892,479 $892,479 $31,880,652 $5,194,404 $37,075,056 $(305,157) $(305,157) $(24,301,764) $0 $0 $0 $(24,301,764)

City of Imperial Beach $168,536 $168,536 $6,457,467 $560,664 $7,018,131 $(28) $(28) $(6,491,152) $0 $0 $0 $(6,491,152)

City of La Mesa $372,250 $372,250 $14,021,657 $3,299,195 $17,320,852 $(64) $(64) $(15,135,537) $0 $0 $(2,550,468) $(17,686,005)

City of Lemon Grove $171,734 $171,734 $6,465,634 $608,996 $7,074,630 $(29,289) $(29,289) $(5,643,211) $0 $0 $0 $(5,643,211)

City of National City $348,736 $348,736 $12,613,759 $1,205,153 $13,818,912 $(255,060) $(255,060) $(13,903,285) $(95,152) $(95,152) $(7,664,948) $(21,568,233)

City of Oceanside $1,063,401 $1,063,401 $41,568,173 $8,594,471 $50,162,644 $(3,988,332) $(3,988,332) $(49,659,887) $(70,893) $(70,893) $(121,651) $(49,781,538)

City of Poway $356,230 $356,230 $13,736,917 $1,164,737 $14,901,654 $(61) $(61) $(14,128,299) $0 $0 $0 $(14,128,299)

City of San Diego $8,021,046 $8,021,046 $289,201,331 $25,907,519 $315,108,850 $(1,022,255) $(1,022,255) $(275,413,386) $0 $0 $0 $(275,413,386)

City of San Marcos $544,094 $544,094 $18,992,100 $3,192,828 $22,184,928 $(96) $(96) $(24,600,476) $(234,532) $(234,532) $(4,924,386) $(29,524,862)

City of Santee $347,391 $347,391 $13,092,793 $1,103,886 $14,196,679 $(32,060) $(32,060) $(21,718,298) $(238,829) $(238,829) $(10,221,247) $(31,939,545)

City of Solana Beach $103,051 $103,051 $4,027,737 $462,669 $4,490,406 $(69,416) $(69,416) $(7,682,419) $(80,661) $(80,661) $(1,792,448) $(9,474,867)

6

FISCAL YEAR: QUARTER:

TransNet Allocations Fund Disbursements

Sales Tax Allocations Other

Income

Total

Allocation

Program Disbursements Debt Service

PROGRAM & RECIPIENT This Quarter FY to Date Program to Date Program to DateProgram to Date This Quarter FY to Date Program to Date This Quarter FY to Date Program to Date Program to Date

Total

Disbursements

FY 2019 1

1

23

City of Vista $577,246 $577,246 $20,556,083 $3,621,717 $24,177,800 $(24,463) $(24,463) $(21,927,827) $0 $0 $0 $(21,927,827)

San Diego County $4,023,556 $4,023,556 $135,984,520 $14,104,906 $150,089,426 $(717) $(717) $(128,414,612) $(249,047) $(249,047) $(19,384,962) $(147,799,574)

Total Local Streets and Roads $20,384,553 $20,384,553 $729,694,312 $89,057,955 $818,752,267 $(6,586,327) $(6,586,327) $(715,992,761) $(1,018,069) $(1,018,069) $(48,152,561) $(764,145,322)

Transit Services

MTS $7,951,891 $7,951,891 $284,165,967 $387,147 $284,553,114 $(5,573,235) $(5,573,235) $(281,586,541) $0 $0 $0 $(281,586,541)

NCTD $3,230,717 $3,230,717 $116,131,544 $176,168 $116,307,712 $(3,050,572) $(3,050,572) $(113,721,440) $(50,433) $(50,433) $(1,379,163) $(115,100,603)

Senior Grant Program $375,643 $375,643 $13,446,686 $125,884 $13,572,570 $(66) $(66) $(12,922,357) $0 $0 $0 $(12,922,357)

Total Transit Services $11,558,251 $11,558,251 $413,744,197 $689,199 $414,433,396 $(8,623,873) $(8,623,873) $(408,230,338) $(50,433) $(50,433) $(1,379,163) $(409,609,501)

New Major Corridor Transit Operations $5,674,051 $5,674,051 $203,110,788 $7,139,895 $210,250,683 $(186,819) $(186,819) $(59,496,030) $0 $0 $0 $(59,496,030)

TOTAL TRANSNET EXTENSTION $72,319,344 $72,319,344 $2,587,387,830 $55,696,728 $2,643,084,558 $60,800,270 $60,800,270 $(3,988,282,031) $(31,147,080) $(31,147,080) $(1,015,604,331) $(5,003,886,362)

Commercial Paper Program Activity

PROGRAM & RECIPIENT Commercial Paper Disbursements

Program to DateFY to Date

City of National City $(4,500,000)$0

City of Santee $(3,950,000)$0

NCTD $(34,000,000)$0

City of La Mesa $(2,500,000)$0

City of Oceanside $(1,064,000)$0

City of Del Mar $(704,000)$0

Major Corridor Capital Projects $(99,899,679)$0

Major Corridor Project EMP $(16,052,321)$0

Total CP Disbursements $(162,670,000)$0

PROGRAM & RECIPIENT

Program to DateFY to DateThis QuarterPrior Years

Commercial Paper Program Availability

CP Program $100,000,000 $0 $0 $100,000,000

NCTD $(25,550,000) $1,250,000 $1,250,000 $(24,300,000)

City of La Mesa $0 $0 $0 $0

City of Oceanside $(1,064,000) $89,000 $89,000 $(975,000)

Major Corridor Capital Projects $0 $0 $0 $0

Major Corridor Project EMP $0 $0 $0 $0

CP Outstanding $(26,614,000) $0 $0 $(25,275,000)

CP AVAILABLE FOR ISSUANCE $73,386,000 $1,339,000 $1,339,000 $74,725,000

Prior Years This Quarter FY to DateProgram to Date

Sales Tax Revenue Transfers for EMP Debt Service Payments

Other Activity

PROGRAM & RECIPIENT

Program to Date

$(57,204,797) $15,413,979 $15,413,979 $(41,790,818)Major Corridor Capital Projects

$57,204,797 $(15,413,979) $(15,413,979) $41,790,818 Major Corridor Project EMP

$0 $0 $0 $0 Total Other Activity

7

FOOTNOTES: 1. Other income includes interest revenue, transfers from TransNet I, other non-sales tax revenue, and the one-time swap of Major Corridor Sales Tax Revenue (to LSI Cities and County) for ARRA funds.

2. Program Disbursements include payments to TransNet recipient agencies and program costs, including payments made for Early Action Projects in prior years, and return of funds.

3. Debt Service includes principal and interest payments, including debt payments beginning in March 2008 upon issuance of the 2008 ABCD Sales Tax Revenue Bonds, and other debt service costs net of interest

earnings.

4. 2008 Bond Proceeds have been fully disbursed, net of Reserve Requirement of $17.1 million. The Program to Date total includes interest earnings. The 2008 Bonds were partially defeased with the issuance of the 2012

Bonds on June 14, 2012, thereby reducing the 2008 Bond Proceed Disbursement.

5. 2010, 2012, and 2014 Bond Proceeds have been fully disbursed and the Program to Date includes interest earnings.

6. The 2012 Bond total includes a premium of $55.8 million, the 2014 Bond total includes a premium of $55.3 million, the 2016 Bond total includes a premium of $78.8 million, and the 2018 Bond includes a premium of $31.6

million

Prior Years This Quarter FY to Date Program to Date

Bond Proceeds DisbursementsPROGRAM & RECIPIENT

2008 ABCD Sales Tax Revenue Bond Activity - $600,000,000

4

San Diego County $16,893,500 $0 $0 $16,893,500

Major Corridor Capital Projects $392,721,119 $0 $0 $392,721,119

Major Corridor Project EMP $45,517,182 $0 $0 $45,517,182

Total 2008 Bond Disbursement $455,131,801 $0 $0 $455,131,801

2010 A Sales Tax Revenue Bond Activity - $338,960,000


Bond Proceeds DisbursementsPROGRAM & RECIPIENT5

City of San Marcos $15,253,815 $0 $0 $15,253,815

City of Solana Beach $5,515,065 $0 $0 $5,515,065



Total 2010 A Bond Disbursement $340,480,710 $0 $0 $340,480,710

2010 B Sales Tax Revenue Bond Activity - $11,040,000


Bond Proceeds DisbursementsPROGRAM & RECIPIENT5

City of National City $3,383,956 $0 $0 $3,383,956

City of Santee $8,519,844 $0 $0 $8,519,844

Total 2010 B Bond Disbursement $11,903,800 $0 $0 $11,903,800


Bond Proceeds Disbursements


PROGRAM & RECIPIENT4,5,6

San Diego County $5,706,500 $0 $0 $5,706,500



Total 2012 A Bond

Disbursement

$477,288,767 $0 $0 $477,288,767



Bond Proceeds DisbursementsPROGRAM & RECIPIENT 5,6

$3,518,350 $0 $0 $3,518,350 City of Del Mar

$1,152,611 $0 $0 $1,152,611 City of San Marcos

$5,397,979 $0 $0 $5,397,979 City of Santee

$343,906,117 $0 $0 $343,906,117 Major Corridor Capital Projects

$52,162,768 $0 $0 $52,162,768 Major Corridor Project EMP

$406,137,825 $0 $0 $406,137,825 Total 2014 A Bond Disbursement



Bond Proceeds DisbursementsPROGRAM & RECIPIENT 6

Bicycle/Pedestrian/Neighborhood Safety $3,570,168 $8,305,572 $8,305,572 $11,875,740

Major Corridor Capital Projects $287,718,715 $23,537,892 $23,537,892 $311,292,607

Major Corridor Project EMP $45,372,690 $8,632,211 $8,632,211 $54,004,901



Bond Proceeds DisbursementsPROGRAM & RECIPIENT 6

Major Corridor Capital Projects $300,467,257 $52,157,953 $52,157,953 $352,625,210

Total 2018 A Bond Disbursement$300,467,257 $52,157,953 $52,157,953 $352,625,210

Total 2016 A Bond Disbursement $336,661,573 $40,475,675 $40,475,675 $377,173,248

8

SANDAG Investments and Debt Portfolio Overview

Outstanding Debt Overview

As noted in the prior quarterly update, the San Diego County Regional Transportation Commission (Commission) issued the Series 2018A Short Term Notes (Notes) in April 2018, with a total par of $537.5 million. The Notes mature in 2021 and have an all-in borrowing cost of 1.85 percent. Interest on the Notes will be repaid from TransNet revenues, while the principal is expected to be repaid by drawing on the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. The Notes will serve as interim financing for the Mid-Coast Corridor Transit Project, allowing the Commission to fund ongoing capital expenses at a borrowing cost lower than the TIFIA loan’s already favorable 2.72 percent.

Currently, the TIFIA loan is undrawn and does not represent an obligation of SANDAG at this time. While the TIFIA loan remains undrawn, the Commission has $2.26 billion of outstanding long-term debt, including the Notes. Of the total debt portfolio, 18 percent consists of synthetic, fixed-rate bonds (variable-rate bonds hedged with fixed-payer interest rate swaps), and the remaining 82 percent are fixed-rate bonds. A summary of the outstanding bonds is tabulated and graphically presented below.

Summary of Outstanding Debt

Series Tax Status Coupon Type Original Issue Size Outstanding Par Call Option Final

Maturity

2008A Tax-Exempt Variable-Rate $150,000,000 $100,575,000 Current 4/1/2038

2008B Tax-Exempt Variable-Rate $150,000,000 $100,575,000 Current 4/1/2038

2008C Tax-Exempt Variable-Rate $150,000,000 $100,575,000 Current 4/1/2038

2008D Tax-Exempt Variable-Rate $150,000,000 $100,575,000 Current 4/1/2038

2010A Taxable BABs Fixed-Rate $338,960,000 $338,960,000 Make-Whole 4/1/2048

2010B Tax-Exempt Fixed-Rate $11,040,000 $6,235,000 4/1/2020 4/1/2030

2012A Tax-Exempt Fixed-Rate $420,585,000 $324,400,000 4/1/2022 4/1/2048



2018A Notes Tax-Exempt Fixed-Rate $537,480,000 $537,480,000 Non-Callable 4/1/2021

Total $2,263,185,000

Summary of TIFIA Loan Commitment

Series Tax Status Coupon Type Original Issue Size Outstanding Par Call Option Final Maturity

TIFIA* Taxable Fixed-Rate $537,484,439 $0 Anytime 10/1/2045

Total with Loan Commitment $2,263,189,439

* The TIFIA loan will be drawn upon in 2021 to retire the 2018A Notes. The simultaneous draw on the TIFIA loan and

the retirement of the 2018A Notes will have an offsetting impact and will not increase the amount of total

obligations outstanding.

9

Attachment 3

Debt Service and Coverage

SANDAG has debt obligations on three separate lien levels, providing different priority of sales tax payment to investors based on their respective lien level. Senior lien obligations are paid first, followed by subordinate lien obligations and then junior subordinate lien obligations (i.e., TIFIA loan). This three-tiered lien structure has been developed by SANDAG to maximize program capacity, keep senior lien ratings as high as possible, and minimize borrowing costs.

The 2018A Notes are repayable from sales tax revenues that are subordinate to the outstanding bonds (which are on the senior lien) and are on parity with the existing commercial paper (which is on the subordinate lien). The TIFIA loan is repayable from a third lien that is subordinate to the senior lien bonds, the 2018A Notes, and the commercial paper. As a result, senior lien debt service remains level in aggregate, at about $105.2 million annually.

Tax-Exempt$1,924.2MM

85%

Taxable BABs$339.0MM

15%

Fixed Rate$1,860.9MM

82%

Synthetic Fixed Rate$402.3MM

18%

Outstanding Par Breakdown by Fixed and Hedged Outstanding Par Breakdown by Tax Status

10

Assuming SANDAG draws on the TIFIA loan as expected to complete the Mid-Coast Corridor Transit Project, SANDAG aggregate debt service will peak at $163.3 million in FY 2045. Senior lien debt service coverage, using sales tax receipts of $294.5 million for the last 12 months ending June 30, 2018, is 2.80 times. Meaning, for every $1 of senior lien debt service, SANDAG received $2.80 of sales tax revenue providing ample coverage, supporting SANDAG senior lien triple-A ratings. Total coverage, when comparing the last 12 months of revenues to peak debt service (including assumed debt service on the undrawn TIFIA loan) in FY 2045, is 1.80 times.

Major Corridors Coverage

In accordance with the TransNet Ordinance, the Major Corridors subprogram receives 38 percent of TransNet revenues after allocations for administrative and ITOC expenses. Major Corridors is the most capital-intensive program, funding various projects, including the Mid-Coast Corridor Transit Project. Costs associated with these projects can and have been funded with tax-exempt bonds. SANDAG Board Policy No. 036: San Diego County Regional Transportation Commission Debt Policy, dictates that the Major Corridors subprogram (and other TransNet subprograms) maintain an annual debt service coverage ratio of at least 1 times, meaning that for every $1 of TransNet revenue, there is no more than $1 of debt service allocated to the subprogram in any given year. Board Policy No. 036, Section 2.3, states as follows:

2.3 Borrowing requirements are determined for each eligible sub-program and debt service is allocated to each sub-program based upon its pro rata share of bond proceeds. It is the general principal for the TransNet Plan of Finance that the annual debt service for each sub-program be less than the annual sales tax revenue allocated to a sub-program on an annual basis. This 1.0x program debt service coverage requirement ensures that no single sub-program incurs more debt than it can afford.

For planning purposes, debt service has been structured using a forecast of sales tax receipts. Based on this forecast, following the issuance of the Notes, coverage in the Major Corridors Program is projected to drop to 1.01 times in FY 2019 and 1.06 times in FY 2020 based on the last Plan of Finance. Annual coverage rebounds after the retirement of the notes in FY 2021 and is 1.18 times when the TIFIA loan begins to amortize in FY 2026 based on the last Plan of Finance. The TIFIA debt service structure in the Major Corridors Program increases over time, in anticipation of increased sales tax revenue.

11

Recent Variable-Rate Demand Bond and Swap Mark-to-Market Performance

SANDAG has $402.3 million of outstanding variable-rate demand bonds (VRDBs) (Series 2008A, B, C, and D), as shown below. These VRDBs are backed by standby bond purchase agreements from certain financial institutions. The interest rate on these bonds resets weekly through a remarketing process. As a performance measure, the bonds are compared to the Securities Industry and Financial Markets Association (SIFMA) benchmark index.

Following the passage of the Tax Cut and Jobs Act in December 2017, SIFMA has been relatively volatile. Its final reset for 2017 was 1.71 percent, which was 109 percent of the 1-Month London Interbank Offered Rate (LIBOR) at the time and significantly higher than the historical average. For the first eight months through August 2018, SIFMA has been very volatile, dropping below 1 percent in February and July, with an intermittent peak of 1.81 percent in April. It has been fairly stable for the last couple months and is currently 1.60 percent, or 70 percent of 1-Month LIBOR. This recent trend might indicate the end of what was an extremely volatile phase for SIFMA, however, we will continue to monitor it. Despite the volatility, SANDAG VRDBs continued to trade well compared to SIFMA.

SANDAG Series 2008A–D VRDB Resets Since December 31, 2015

Series SBPA Provider Remarketing Agent Reset

Average SIFMA

Average Spread to

SIFMA

2008A JPMorgan Chase Bank, N.A. Barclays Capital Inc. 0.77% 0.84% -7 bps

2008B JPMorgan Chase Bank, N.A. Goldman, Sachs & Company 0.78% 0.84% -6 bps

2008C Bank of America, N.A. JPMorgan Securities LLC 0.79% 0.84% -5 bps

2008D State Street Stifel, Nicolaus & Company, Inc. 0.77% 0.84% -7 bps

SANDAG also has $402.3 million of fixed-payer interest rate swaps outstanding, the purpose of which is to hedge the interest rate variability associated with the $402.3 million of variable-rate bonds. Additionally, SANDAG has $313.2 million of basis swaps outstanding. Under the basis swaps, which became effective on April 1, 2018, when the existing fixed-payer swaps originally were scheduled to convert from the LIBOR to the SIFMA-based indices, SANDAG pays its counterparty a floating interest rate payment based on the SIFMA index and receives a floating payment based on 107.4 percent of three-month LIBOR. The market value of the SANDAG swap portfolio changes with interest rate fluctuations. The mark-to-market (MTM) valuation is ($31,513,598), meaning SANDAG would need to pay approximately $31.5 million to terminate the entire swap portfolio in the current market. The swaps are performing as expected, and currently there are no reasons why SANDAG would need to terminate the swaps. Additionally, SANDAG is not required to post collateral under the swap agreements.

12

Swap Portfolio Overview

Associated Series

SANDAG Pays

SANDAG Receives

Trade Date

Effective Date

Maturity Date

MTM Value (As of

10/29/2018)

Notional Outstanding

Bank Counterparty

Series 2008

3.8165%

65% of USD-LIBOR until 4/2018;

SIFMA Swap Index thereafter

5/23/2012 5/23/2012 4/1/2038 ($19,091,145) $134,100,000 Bank of America, N.A.

(Aa3/A+/A+)

Series 2008

3.8165%

65% of USD-LIBOR until 4/2018;

SIFMA Swap Index thereafter

5/23/2012 5/23/2012 4/1/2038 ($19,091,145) $134,100,000

Goldman Sachs Mitsui Marine Derivative Products, L.P.

(Aa2/AA-/ )

Series 2008

3.4100% 65% of USD-LIBOR

5/23/2012 5/23/2012 4/1/2038 ($19,805,632) $134,100,000 Bank of America, N.A.

(Aa3/A+/A+)

Total Fixed-Payer Swaps ($57,987,922) $402,300,000

Series 2008

SIFMA Swap Index

107.4% of 3 month USD-LIBOR

3/19/2009 4/1/2018 4/1/2038 $13,237,162 $156,600,000 Barclays Bank PLC

(A2/A/A)

Series 2008

SIFMA Swap Index

107.4% of 3 month USD-LIBOR

3/19/2009 4/1/2018 4/1/2038 $13,237,162 $156,600,000 Barclays Bank PLC

(A2/A/A)

Total Index Conversion Swaps $26,474,324 $313,200,000

Total Combined ($31,513,598) $715,500,000

(Rest of this page intentionally left blank)

13

Cost of Capital

SANDAG has a very attractive weighted average cost of capital (WACC) of 3.35 percent. This cost can vary based on swap performance and the cost of liquidity to support the variable-rate debt.

The 2008A–D bonds, with the current swap rate and associated fees, provide a cost of capital equal to 4.11 percent. The 2010A bonds were issued as taxable Build America Bonds and have a borrowing cost of 3.89 percent. The 2010B tax-exempt bonds have a borrowing cost of 3.14 percent. The 2012A, 2014A, and 2016A bonds were sold at an all-in cost of 3.72 percent, 3.85 percent, and 3.29 percent, respectively. The 2018A Short Term Notes have a borrowing cost of 1.86 percent. Taken together, SANDAG has issued approximately $2.39 billion in long-term debt to accelerate project delivery, for a WACC of 3.35 percent.

SANDAG WACC Calculations

Synthetic Fixed Rate:

Series Par Post 2012 Refunding Swap Rate SBPA Fee Remarketing Agent Fee Cost of Capital

2008A $100,575,000 3.8165% 0.390% 0.06% 4.2665%

2008B $100,575,000 3.8165% 0.390% 0.06% 4.2665%

2008C1 $67,050,000 3.8165% 0.350% 0.06% 4.2265%

2008C2 $33,525,000 3.4100% 0.350% 0.06% 3.8200%

2008D $100,575,000 3.4100% 0.340% 0.06% 3.8100%

2008 Weighted Average 4.1085%

Fixed Rate:

Series Original Par - - - All-in True

Interest Cost

2010A $338,960,000 - - - 3.8871%

2010B $11,040,000 - - - 3.1434%

2012A $420,585,000 - - - 3.7167%

2014A $350,000,000 - - - 3.8507%

2016A $325,000,000 - - - 3.2947%

2018A

Notes $537,480,000 - - - 1.8596%

Total Weighted Average Without TIFIA Loan 3.3477%

Commercial Paper

In addition to the long-term debt, SANDAG has a short-term Commercial Paper Program supported by a Letter of Credit (LOC) from Bank of America Merrill Lynch. The Commercial Paper Program was authorized at $100 million and has a current outstanding balance of $25.3 million as of October 31, 2018, when it was remarketed out 86 days, at a rate of 1.71 percent. The supporting LOC with Union Bank expired in September 2018. As noted in the prior quarterly update, SANDAG staff solicited bids for a replacement LOC in July 2018. Bank of America Merrill Lynch submitted the winning bid. The commercial paper was remarketed with the new LOC on September 11, 2018. Through the competitive Request for Proposals (RFP) process, SANDAG lowered the annual LOC fees from .40 percent to .32 percent for the next three years.

14

Looking Ahead

SANDAG entered into a Full Funding Grant Agreement (FFGA) with the Federal Transit Administration (FTA) in September 2016. The FFGA provides a commitment for up to $1.043 billion between federal fiscal years 2016 and 2026, of which SANDAG has received $250 million to date, and expects to receive the remainder through 2026. All prior Plans of Finance presented to the SANDAG Board have included issuance of Grant Anticipation Notes (GANs), secured by such future FFGA receipts. The GANs are not expected to be secured by a lien on sales tax revenues. SANDAG staff has distributed a solicitation for underwriting services for the sale of GANs, anticipated in 2019. The proceeds from the GANs sale will be used for construction expenses associated with the Mid-Coast Corridor Transit Project. Staff will continue to provide more information and updates in subsequent reports.

Quarterly Investment Data

Included with this quarterly finance report through September 30, 2018, are a summary of portfolio balances by institution (Attachment 1); a detail of portfolio balances by account (Attachment 2); and a detail of portfolio balances by investment type (Attachment 3) for all money under the direction or care of SANDAG, including funds of the Commission, SourcePoint, and the Automated Regional Justice Information System (ARJIS).

As of September 30, 2018, a total of $1.124 billion was held by SANDAG in a number of investment accounts, in comparison to $1.035 billion held in the previous quarter. The $89 million increases during the quarter primarily is due to the timing of TransNet sales tax receipts, TransNet debt service payments, TransNet allocation payments to other local governmental agencies, and the use of TransNet bond proceeds to fund current projects.1

Approximately $12.5 million was held in nine U.S. Bank, N.A. accounts at the end of the quarter, which are used for operating purposes. Approximately $1.110 billion was invested in seven institutions, as follows:

1. State of California Local Agency Investment Fund (LAIF) – State law allows local agencies(Commission and SANDAG) to invest up to $65 million per agency in LAIF. These funds hold excessoperating funds for the Commission and SANDAG. A total of approximately $66.6 million was investedin LAIF, of which the Commission held the majority at $64.8 million.

2. California Asset Management Program (CAMP) – These are funds administered by one of the twoSANDAG investment managers, PFM Asset Management, LLC. The Cash Reserve Portfolio, totaling$378.2 million, is used for the investment of the 2008 TransNet bond reserves; the 2008, 2010, 2012,2014, and 2016 TransNet bond, and the 2018 TransNet short-term note investments for future principaland interest payments; 2016 TransNet bond proceeds and 2018 short-term note proceeds; and excessoperating funds for Interstate 15 FasTrak®, State Route 125 (SR 125), ARJIS, Coronado Bridge Toll Funds,and TransNet sales tax funds not yet paid for TransNet-approved projects. In addition, CAMP uses theIndividual Portfolio, totaling $299.6 million, for the investment of SR 125 reserves for future projects; the2008 TransNet bond reserves, 2016 TransNet bond proceeds; the 2008, 2010, 2012, 2014, and2016 TransNet bond and 2018 TransNet short-term note investments for future principal and interestpayments; and TransNet sales tax funds not yet paid to other local governmental agencies.

1 Due to rounding, the numbers below may not tie to the attached detail of investments.

15

3. U.S. Bank – These funds, totaling approximately $78.2 million, were held by U.S. Bank. As Trustee for theCommission under the TransNet Program, funds were held for bond debt service payments and paymentof debt service on the short-term Commercial Paper Program. As Trustee for the SR 125 toll revenuebonds, funds were held for debt service payments, future capital expenditures, and customer prepaidfunds. U.S. Bank also held funds for retention through the completion of SANDAG projects and fundsheld by the Commission as collateral received on the 2018 Swaps. Of the $79.3 million balance,$25.6 million of the investments held by U.S. Bank is invested in North County Transit District auctionrate securities purchased with commercial paper.

4. U.S. Bank – These are funds administered by one of the two SANDAG investment managers, CutwaterAsset Management Corp. The Individual Portfolio, totaling $199.8 million, and the Cash ReservePortfolio, totaling $116,769 are used for the investment of excess TransNet sales tax revenue not yet paidfor TransNet-approved projects.

5. San Diego County Treasurer’s Pooled Money Fund – These funds, totaling $81.1 million, were held by theSan Diego County Treasurer’s Pooled Money Fund. The funds consist of ARJIS, SANDAG ServiceAuthority for Freeway Emergencies, SourcePoint, Interstate 15 FasTrak, and TransNet sales tax revenues.

6. California Bank and Trust – There was $270,085 on deposit with California Bank and Trust pursuant tocapital project escrow retention agreements with various contractors.

7. Wells Fargo Bank, N.A. – These funds are administered by PFM Asset Management, LLC, theadministrator for the SANDAG Internal Revenue Code Section 115 Trust Account. These funds totalapproximately $6.5 million and are savings for future pension costs.

The chart below provides a snapshot of the investment holding locations as of September 30, 2018.

As shown in the chart below, as of September 30, 2018, the yield on cost of the portfolio was 1.86 percent, with a weighted average maturity of 175 days, in comparison to 1.72 percent and 200 days in the prior quarter.

Investment Holdings US BANK, N.A.

LAIF

CAMP IP

CAMP CASH RESERVE

US BANK

US BANK IP

US BANK CASH RESERVE

COSD TREASURER'S POOL

CALIFORNIA BANK AND TRUST

WELLS FARGO BANK, N.A.

16

The Finance Department has continued to implement the Board of Directors investment objectives of safety, liquidity, and return on investment for the SANDAG investment portfolio. These will continue to be important investment objectives for the future.

Certifications

The Director of Finance reports that this investment portfolio, together with the authorized short-term Commercial Paper Program, will provide the necessary liquidity to meet the expenditure requirements of SANDAG, the Commission, ARJIS, and SourcePoint for the next six months. This portfolio is in compliance with state law and Board Policy No. 003: Investment Policy.

The Director of Finance reports that there has not been any material event involving outstanding swap agreements, nor has there been any default by a swap counterparty or counterparty termination.

0

0.5

1

1.5

2

2.5

3

Semi-Annual Yield on Cost

17

SANDAG

Summary of Portfolio Balances (by Institution)

as of September 30, 2018

Wtd. Avg.

Book Percent of Market Market Unrealized Yield on Days to

Institution Value Portfolio Value Price Gain/(Loss) Cost Maturity

US BANK, N.A. 13,927,413.05$ 1.24% 13,927,413.05$ 100.00% -$ N/A 1

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND 66,594,104.21 5.91% 66,594,104.21 100.00% - 2.09% 193 **

CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP) INDIVIDUAL PORTFOLIO 302,016,862.75 26.81% 299,552,904.93 99.18% (2,463,957.82) 1.85% 339

CAMP CASH RESERVE PORTFOLIO 378,152,534.05 33.56% 378,152,534.05 100.00% - 2.14% 31 **

US BANK 76,978,996.07 6.83% 76,978,996.07 100.00% - 1.19% 22

US BANK INDIVIDUAL PORTFOLIO 201,280,898.33 17.87% 199,847,314.66 99.29% (1,433,583.67) 1.65% 186

US BANK CASH RESERVE PORTFOLIO 116,768.74 0.01% 116,768.74 100.00% - 0.00% 1

SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND 81,073,649.87 7.20% 81,073,649.87 100.00% - 2.07% 387 **

CALIFORNIA BANK AND TRUST 270,085.36 0.02% 270,085.36 100.00% - 0.20% 1

WELLS FARGO BANK, N.A. 6,261,552.95 0.56% 6,497,343.19 103.77% 235,790.24 2.24% 1

TOTAL 1,126,672,865.38$ 100.00% 1,123,011,114.13$ 99.67% (3,661,751.25)$ 1.86% 175

** Although average days to maturity is greater than one day, funds are available at par the same day.

Summary of Portfolio Balances (by Agency)

Wtd. Avg.

Book Percent of Market Market Unrealized Yield on Days to

Agency Value Portfolio Value Price Gain/(Loss) Cost Maturity

SANDAG FUNDS 179,942,173.87$ 15.97% 180,030,643.94$ 100.05% 88,470.07$ 1.59% 104

AUTOMATED REGIONAL JUSTICE INFORMATION SYSTEM FUNDS 7,509,886.66 0.67% 7,509,886.66 100.00% - 2.12% 149

SOURCEPOINT FUNDS 210,524.92 0.02% 210,524.92 100.00% - 2.07% 319

CORONADO BRIDGE TOLL FUNDS 281,627.67 0.02% 281,627.67 100.00% - 2.14% 31

SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION FUNDS 938,728,652.26 83.31% 934,978,430.94 99.60% (3,750,221.32) 1.93% 189

TOTAL 1,126,672,865.38$ 100.00% 1,123,011,114.13$ 99.67% (3,661,751.25)$ 1.86% 175

Note: In addition to the funds held above, there is $4,750 petty cash held at SANDAG.

18

Percent Wtd. Avg.

Book of Market Market Unrealized Yield on Days to

Institution / Account Value Portfolio Value Price Gain/(Loss ) Cost Maturity

US BANK, N.A.:

Checking - TransNet Sales Tax (RTC) 959,142.32$ 0.09% 959,142.32$ 100.00% -$ N/A 1

Checking - SANDAG General 6,010,542.08 0.53% 6,010,542.08 100.00% - N/A 1

Checking - SANDAG Flexible Spending Acct (FSA) 90,300.26 0.01% 90,300.26 100.00% - N/A 1

Checking - SANDAG Interstate 15 (I-15) FasTrak ® 2,349,227.26 0.21% 2,349,227.26 100.00% - N/A 1

Checking - SANDAG SAFE Program Acct 756,891.98 0.07% 756,891.98 100.00% - N/A 1

Checking - SourcePoint 36,991.84 0.00% 36,991.84 100.00% - N/A 1

Checking - ARJIS 264,958.61 0.02% 264,958.61 100.00% - N/A 1

Checking - State Route 125 (SR 125) Payment Account 3,186,180.95 0.28% 3,186,180.95 100.00% - N/A 1

Checking - State Route 125 (SR 125) Collection Account 273,177.75 0.02% 273,177.75 100.00% - N/A 1

TOTAL US BANK, N.A. 13,927,413.05$ 1.24% 13,927,413.05$ 100.00% -$ N/A 1

STATE OF CA LOCAL AGENCY INVESTMENT FUND (LAIF):

TransNet (RTC) 64,761,550.28$ 5.75% 64,761,550.28$ 100.00% -$ 2.09% 193

SANDAG 1,832,553.93 0.16% 1,832,553.93 100.00% - 2.09% 193

TOTAL LAIF 66,594,104.21$ 5.91% 66,594,104.21$ 100.00% -$ 2.09% 193 **

CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP):

INDIVIDUAL PORTFOLIO:

TransNet Sales Tax (RTC) 162,115,250.80$ 14.39% 160,368,456.59$ 98.92% (1,746,794.21)$ 1.75% 410

TransNet Program Reserve (RTC) 54,129,337.84 4.80% 53,409,281.09 98.67% (720,056.75) 1.58% 461

TransNet 2008 Bond Proceeds A/B/C/D Reserve Fund (RTC) 17,207,520.71 1.53% 17,038,817.42 99.02% (168,703.29) 2.20% 341

TransNet 2016 Bond Proceeds Series A Project (RTC) 59,392,418.65 5.27% 59,726,540.00 100.56% 334,121.35 2.38% 68

Sage Hill Endowment (RTC) 821,139.00 0.07% 805,934.25 98.15% (15,204.75) 1.79% 730

SANDAG Toll Rd Project Major Main Reserve Acct 8,351,195.75 0.74% 8,203,875.58 98.24% (147,320.17) 0.94% 86

TOTAL INDIVIDUAL PORTFOLIO 302,016,862.75$ 26.81% 299,552,904.93$ 99.18% (2,463,957.82)$ 1.85% 339

SANDAG

Detail of Portfolio Balances (by Account)


19

Percent Wtd. Avg.



SANDAG



CASH RESERVE PORTFOLIO:

I-15 FasTrak 638,948.85$ 0.06% 638,948.85$ 100.00% -$ 2.14% 31

ARJIS 4,725,614.49 0.42% 4,725,614.49 100.00% - 2.14% 31

California Coastal Commission 1,010,899.51 0.09% 1,010,899.51 100.00% - 2.14% 31

SANDAG SR 125 1,904,447.98 0.17% 1,904,447.98 100.00% - 2.14% 31

SANDAG SR 125 24,302,112.81 2.16% 24,302,112.81 100.00% - 2.14% 31

SANDAG SR 125 34,259,392.19 3.04% 34,259,392.19 100.00% - 2.14% 31

Coronado Bridge Toll Funds 281,627.67 0.02% 281,627.67 100.00% - 2.14% 31

SANDAG Shoreline Management Account 166,195.17 0.01% 166,195.17 100.00% - 2.14% 31

2008 Bond Series A/B/C/D Reserve Fund (RTC) 137,874.74 0.01% 137,874.74 100.00% - 2.14% 31

2008 Bond Series A - Principal (RTC) 1.00 0.00% 1.00 100.00% - 2.14% 31

2008 Bond Series B - Principal (RTC) 1.00 0.00% 1.00 100.00% - 2.14% 31

2008 Bond Series C - Principal (RTC) 1.00 0.00% 1.00 100.00% - 2.14% 31

2008 Bond Series D - Principal (RTC) 1.00 0.00% 1.00 100.00% - 2.14% 31

2010 Bond Series B - Principal (RTC) 361,645.03 0.03% 361,645.03 100.00% - 2.14% 31

2010 Bond Series B - Interest (RTC) 127,665.43 0.01% 127,665.43 100.00% - 2.14% 31

2010 Bond Series A - Interest (RTC) 10,066,826.67 0.89% 10,066,826.67 100.00% - 2.14% 31


2012 Bond Series A - Principal (RTC) 8,971,417.39 0.80% 8,971,417.39 100.00% - 2.14% 31

2008 Sales Tax Account - TransNet Extension (RTC) 49,679,413.17 4.41% 49,679,413.17 100.00% - 2.14% 31

Wetland Mitigation TransNet Sales Tax (RTC) 300,087.12 0.03% 300,087.12 100.00% - 2.14% 31

Sage Hill Endowment (RTC) 18,365.70 0.00% 18,365.70 100.00% - 2.14% 31

TransNet Program Reserve (RTC) 299,312.44 0.03% 299,312.44 100.00% - 2.14% 31

Custody Account (RTC) 12,724,089.77 1.13% 12,724,089.77 100.00% - 2.14% 31

2014 Bond Series A - Principal (RTC) 2,542,353.57 0.23% 2,542,353.57 100.00% - 2.14% 31


2016 Bond Series A Principal Account (RTC) 2,401,790.89 0.21% 2,401,790.89 100.00% - 2.14% 31

2016 Bond Series A Interest Account (RTC) 7,980,680.93 0.71% 7,980,680.93 100.00% - 2.14% 31

2016 Bond Series A Project Account (RTC) 30,399,717.96 2.70% 30,399,717.96 100.00% - 2.14% 31

2018 Bond Series A Project Account (RTC) 159,260,137.90 14.14% 159,260,137.90 100.00% - 2.14% 31

2018 Bond Series A Interest Account (RTC) 9,321,083.90 0.83% 9,321,083.90 100.00% - 2.14% 31

TOTAL CASH RESERVE PORTFOLIO 378,152,534.05$ 33.56% 378,152,534.05$ 100.00% -$ 2.14% 31 **

TOTAL CAMP 680,169,396.80$ 60.37% 677,705,438.98$ 99.64% -$ 2.01% 167

20

Percent Wtd. Avg.



SANDAG



US BANK:

Capital Project Retention Account 28,239,651.09$ 2.51% 28,239,651.09$ 100.00% -$ 0.30% 1

SANDAG SR 125 First Senior Lien bonds 2017 Series A 102,621.23 0.01% 102,621.23 100.00% - 0.75% 1

SANDAG SR 125 First Senior Lien bonds 2017 Series A Reserve Account 13,785,519.74 1.22% 13,785,519.74 100.00% - 0.75% 1

SANDAG SR 125 First Senior Lien bonds 2017 Series A Interest Account 2,455,586.26 0.22% 2,455,586.26 100.00% - 0.75% 1

SANDAG SR 125 First Senior Lien bonds 2017 Series A Principal Account 1,084,044.71 0.10% 1,084,044.71 100.00% - 0.75% 1

SANDAG SR 125 FasTrak Customer Prepaid Fund 2,009,878.99 0.18% 2,009,878.99 100.00% - 0.75% 1

2008 Bond Series A/B/C/D Main Interest (RTC) 1,218,574.42 0.11% 1,218,574.42 100.00% - 0.30% 1

Commercial Paper Series B - NCTD Interest (RTC) 224,363.43 0.02% 224,363.43 100.00% - 0.30% 1

NCTD Certificates of Participation 24,300,000.00 2.16% 24,300,000.00 100.00% - 1.71% 67

2010 Bond Series A Interest (RTC) 3,274,872.04 0.29% 3,274,872.04 100.00% - 0.30% 1

2018A Short-term Notes Project (RTC) 3.34 0.00% 3.34 100.00% - 0.30% 1

Custody Account (RTC) 260,000.00 0.02% 260,000.00 100.00% - 1.95% 1

Commercial Paper Notes Series B Interest (RTC) 2,192.76 0.00% 2,192.76 100.00% - 1.29% 1

Commercial Paper Notes Series B Principal (RTC) 21,688.06 0.00% 21,688.06 100.00% - 1.30% 1

TOTAL US BANK 76,978,996.07$ 6.83% 76,978,996.07$ 100.00% -$ 1.19% 22

US BANK:

INDIVIDUAL PORTFOLIO:

TransNet Extension (RTC) 201,280,898.33$ 17.87% 199,847,314.66$ 99.29% (1,433,583.67)$ 1.65% 186

TOTAL INDIVIDUAL PORTFOLIO 201,280,898.33$ 17.87% 199,847,314.66$ 99.29% (1,433,583.67)$ 1.65% 186

CASH RESERVE:

TransNet Extension (RTC) 116,768.74$ 0.01% 116,768.74$ 100.00% -$ 0.00% 1

TOTAL CASH RESERVE 116,768.74$ 0.01% 116,768.74$ 100.00% -$ 0.00% 1

TOTAL US BANK 201,397,667.07$ 17.88% 199,964,083.40$ 99.29% (1,433,583.67)$ 1.64% 186

21

Percent Wtd. Avg.



SANDAG



SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND:

SourcePoint Cash Reserve Fund 173,533.08$ 0.02% 173,533.08$ 100.00% -$ 2.07% 387

SANDAG I-15 FasTrak 32,611,540.77 2.89% 32,611,540.77 100.00% - 2.07% 387

TransNet Extension (RTC) 37,779,636.16 3.35% 37,779,636.16 100.00% - 2.07% 387

ARJIS 2,519,313.56 0.22% 2,519,313.56 100.00% - 2.07% 387

SANDAG SAFE Program 7,989,626.30 0.71% 7,989,626.30 100.00% - 2.07% 387

TOTAL SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND 81,073,649.87$ 7.20% 81,073,649.87$ 100.00% -$ 2.07% 387 **

CALIFORNIA BANK AND TRUST:

Capital Project Retention Accounts 270,085.36$ 0.02% 270,085.36$ 100.00% -$ 0.20% 1

TOTAL CALIFORNIA BANK AND TRUST 270,085.36$ 0.02% 270,085.36$ 100.00% -$ 0.20% 1

WELLS FARGO BANK, N.A.:

SANDAG Section 115 Pension Trust 6,261,552.95$ 0.56% 6,497,343.19$ 103.77% 235,790.24$ 2.24% 1

TOTAL WELLS FARGO BANK, N.A. 6,261,552.95$ 0.56% 6,497,343.19$ 103.77% 235,790.24$ 2.24% 1

TOTAL 1,126,672,865.38$ 100.00% 1,123,011,114.13$ 99.67% (3,661,751.25)$ 1.86% 175

Legend:

Automated Regional Justice Information System (ARJIS)

Commercial Paper (CP)

State of California Local Agency Investment Fund (LAIF)

North County Transit District (NCTD)

San Diego County Regional Transportation Commission (RTC)

** Although average days to maturity is greater than one day, funds are available at par the same day.

22

Wtd. Avg.

Trade Maturity Unrealized S&P Moody's Fitch Yield Days to

Investment Date Date Book Value Market Value Gain / (Loss) Par Value Rating Rating Rating on Cost Maturity

Cash and cash equivalents:

Demand deposits :

Checking - TransNet Sales Tax (RTC) N/A N/A 959,142.32$ 959,142.32$ -$ N/A NR NR NR N/A 1

Checking - SANDAG General N/A N/A 6,010,542.08 6,010,542.08 - N/A NR NR NR N/A 1

Checking - SANDAG Flexible Spending Acct (FSA) N/A N/A 90,300.26 90,300.26 - N/A NR NR NR N/A 1

Checking - SANDAG Interstate 15 (I-15) FasTrak ® N/A N/A 2,349,227.26 2,349,227.26 - N/A NR NR NR N/A 1

Checking - SANDAG SAFE Program Acct N/A N/A 756,891.98 756,891.98 - N/A NR NR NR N/A 1

Checking - SourcePoint N/A N/A 36,991.84 36,991.84 - N/A NR NR NR N/A 1

Checking - ARJIS N/A N/A 264,958.61 264,958.61 - N/A NR NR NR N/A 1

Checking - State Route 125 (SR 125) Payment Account N/A N/A 3,186,180.95 3,186,180.95 - N/A NR NR NR N/A 1

Checking - SR 125 Collection Account N/A N/A 273,177.75 273,177.75 - N/A NR NR NR N/A 1

Total demand deposits 13,927,413.05$ 13,927,413.05$ -$ N/A N/A 1

Money market accounts and funds:

Money Market - Capital Project Retention Account N/A N/A 270,085.36$ 270,085.36$ -$ N/A NR NR NR 0.20% 1

Money Market - Capital Project Retention Account N/A N/A 28,239,651.09 28,239,651.09 - N/A NR NR NR 0.30% 1

San Diego County Treasurer's Pooled Money Fund (SourcePoint) N/A N/A 173,533.08 173,533.08 - N/A NR NR AAAf / S1 2.07% 387 *

San Diego County Treasurer's Pooled Money Fund (I-15 FasTrak ®) N/A N/A 32,611,540.77 32,611,540.77 - N/A NR NR AAAf / S1 2.07% 387 *

San Diego County Treasurer's Pooled Money Fund (RTC) N/A N/A 37,779,636.16 37,779,636.16 - N/A NR NR AAAf / S1 2.07% 387 *

San Diego County Treasurer's Pooled Money Fund (ARJIS) N/A N/A 2,519,313.56 2,519,313.56 - N/A NR NR AAAf / S1 2.07% 387 *

San Diego County Treasurer's Pooled Money Fund (SAFE) N/A N/A 7,989,626.30 7,989,626.30 - N/A NR NR AAAf / S1 2.07% 387 *

Money Market - SANDAG SR 125 Lien bonds 2017 Series A N/A N/A 102,621.23 102,621.23 - N/A NR NR NR 0.75% 1

Money Market - SANDAG SR 125 Lien bonds 2017 Ser A Reserve Account N/A N/A 13,785,519.74 13,785,519.74 - N/A NR NR NR 0.75% 1

Money Market - SANDAG SR 125 Lien bonds 2017 Ser A Interest Account N/A N/A 2,455,586.26 2,455,586.26 - N/A NR NR NR 0.75% 1

Money Market - SANDAG SR 125 Lien bonds 2017 Ser A Principal N/A N/A 1,084,044.71 1,084,044.71 - N/A NR NR NR 0.75% 1

Money Market - SANDAG SR 125 FasTrak CUStomer Prepaid Fund N/A N/A 2,009,878.99 2,009,878.99 - N/A NR NR NR 0.75% 1

Money Market - RTC (2008 Bond - Main Interest) N/A N/A 1,218,574.42 1,218,574.42 - N/A NR NR NR 0.30% 1

Money Market - RTC (CP Series B - NCTD) N/A N/A 224,363.43 224,363.43 - N/A NR NR NR 0.30% 1

Money Market - RTC (2010 Bond Series A Interest) N/A N/A 3,274,872.04 3,274,872.04 - N/A NR NR NR 0.30% 1

Money Market - RTC (2018 Short-term Notes Project) N/A N/A 3.34 3.34 - N/A NR NR NR 0.30% 1

Money Market - RTC (CP Notes Series B Principal) N/A N/A 260,000.00 260,000.00 - N/A NR NR NR 1.95% 1

Money Market - RTC (CP Notes Series B Interest) N/A N/A 2,192.76 2,192.76 - N/A NR NR NR 1.29% 1

Money Market - RTC (CUStody Account) N/A N/A 21,688.06 21,688.06 - N/A NR NR NR 1.30% 1

CAMP Cash Reserve Portfolio (I-15 FasTrak ®) N/A N/A 638,948.85 638,948.85 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (ARJIS) N/A N/A 4,725,614.49 4,725,614.49 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio - CA Coastal Commission N/A N/A 1,010,899.51 1,010,899.51 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (SANDAG SR 125) N/A N/A 1,904,447.98 1,904,447.98 - N/A AAAm NR NR 2.14% 31

SANDAG

Detail of Portfolio Balances (by Investment Type)


23

Wtd. Avg.



SANDAG



CAMP Cash Reserve Portfolio - Coronado Bridge Toll Funds N/A N/A 281,627.67 281,627.67 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio - SANDAG Shoreline Management Account N/A N/A 166,195.17 166,195.17 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2008 Bond Reserve N/A N/A 137,874.74 137,874.74 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2008 Bond Ser A Principal N/A N/A 1.00 1.00 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2008 Bond Ser B Principal N/A N/A 1.00 1.00 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2008 Bond Ser C Principal N/A N/A 1.00 1.00 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2008 Bond Ser D Principal N/A N/A 1.00 1.00 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2010 Bond Ser B Principal N/A N/A 361,645.03 361,645.03 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2010 Bond Ser B Interest N/A N/A 127,665.43 127,665.43 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2010 Bond Ser A Interest N/A N/A 10,066,826.67 10,066,826.67 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2012 Bond Interest N/A N/A 7,879,441.40 7,879,441.40 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2012 Bond Principal N/A N/A 8,971,417.39 8,971,417.39 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (SR 125) - Operating/Maint Reserve N/A N/A 24,302,112.81 24,302,112.81 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (SR 125) - Capital Expenditures Fund N/A N/A 34,259,392.19 34,259,392.19 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - Sales Tax N/A N/A 49,679,413.17 49,679,413.17 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio - Wetland Mitigation (RTC) N/A N/A 300,087.12 300,087.12 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio - Sage Hill Endowment (RTC) N/A N/A 18,365.70 18,365.70 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio - TransNet Program Reserve (RTC) N/A N/A 299,312.44 299,312.44 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - CUStody Account 12,724,089.77 12,724,089.77 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2014 Bond Ser A Principal N/A N/A 2,542,353.57 2,542,353.57 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2014 Bond Ser A Interest N/A N/A 8,391,387.37 8,391,387.37 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2016 Series A Principal N/A N/A 2,401,790.89 2,401,790.89 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2016 Series A Interest N/A N/A 7,980,680.93 7,980,680.93 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2016 Bond Series A Project N/A N/A 30,399,717.96 30,399,717.96 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2018 Bond Series A Project N/A N/A 159,260,137.90 159,260,137.90 - N/A AAAm NR NR 2.14% 31

CAMP Cash Reserve Portfolio (RTC) - 2018 Bond Series A Interest N/A N/A 9,321,083.90 9,321,083.90 - N/A AAAm NR NR 2.14% 31

State of CA Local Agency Investment Fund (LAIF) (RTC) N/A N/A 64,761,550.28 64,761,550.28 - N/A NR NR NR 2.09% 193

State of CA Local Agency Investment Fund (LAIF) SANDAG N/A N/A 1,832,553.93 1,832,553.93 - N/A NR NR NR 2.09% 193

US Bank Cash Reserve TransNet Extension (RTC) N/A N/A 116,768.74 116,768.74 - N/A NR NR NR 0.00% 1

Wells Fargo Section 115 TrUSt N/A N/A 6,261,552.95 6,497,343.19 235,790.24 N/A NR NR NR 2.24% 1

Total money market accounts and funds 585,147,691.25$ 585,383,481.49$ 235,790.24$ N/A 1.97% 96

Total cash and cash equivalents 599,075,104.30$ 599,310,894.54$ 235,790.24$ N/A N/A 93

Investments:

U.S . Agencies:

Federal Home Loan Banks Notes 04/16/2018 03/30/2020 9,301,772.70$ 9,258,420.69$ (43,352.01)$ 9,315,000.00$ AA+ Aaa NR 2.45% 547

24

Wtd. Avg.



SANDAG



FHLMC Notes 12/09/2016 03/27/2019 3,710,504.30 3,537,935.38 (172,568.92) 3,515,000.00 AA+ Aaa AAA 1.28% 178

FNMA Benchmark Note 06/17/2016 10/19/2018 1,510,755.00 1,499,211.00 (11,544.00) 1,500,000.00 AA+ Aaa AAA 0.81% 19

FNMA Benchmark Note 06/17/2016 10/19/2018 503,585.00 499,737.00 (3,848.00) 500,000.00 AA+ Aaa AAA 0.81% 19

FNMA Benchmark Note 06/17/2016 01/28/2019 507,045.00 498,468.50 (8,576.50) 500,000.00 AA+ Aaa AAA 0.83% 120


FHLMC Notes 06/17/2016 03/27/2019 538,870.00 503,262.50 (35,607.50) 500,000.00 AA+ Aaa AAA 0.90% 178

Freddie Mac Notes 12/10/2015 05/30/2019 722,900.75 711,428.58 (11,472.17) 715,000.00 AA+ Aaa AAA 1.42% 242

Federal Home Loan Banks Disc Note 09/27/2018 12/26/2018 29,836,875.00 29,837,874.00 999.00 30,000,000.00 A-1+ P-1 NR 2.19% 87


FNMA Notes 08/31/2016 08/28/2019 7,887,676.00 7,786,137.30 (101,538.70) 7,900,000.00 AA+ Aaa AAA 1.05% 332


Fannie Mae Global Notes 01/03/2017 10/24/2019 4,155,357.75 4,141,199.57 (14,158.18) 4,215,000.00 AA+ Aaa AAA 1.52% 389


Fannie Mae Series 2015-M13 Asq2 10/07/2015 09/01/2019 395,564.80 390,153.12 (5,411.68) 391,642.93 AA+ Aaa NR 1.08% 336

FNMA Series 2015-M15 Asq2 11/06/2015 01/01/2019 55,812.15 55,056.27 (755.88) 55,259.56 AA+ Aaa NR 1.20% 93

FNMA Series 2016-M9 Asq2 06/09/2016 06/01/2019 112,655.55 110,833.88 (1,821.67) 111,540.20 AA+ Aaa NR 1.05% 244

FHLMC Reference Note 07/19/2016 07/19/2019 5,721,121.30 5,659,550.34 (61,570.96) 5,735,000.00 AA+ Aaa AAA 0.96% 292

FHLMC Reference Note 10/03/2016 07/19/2019 3,488,590.00 3,453,954.00 (34,636.00) 3,500,000.00 AA+ Aaa AAA 0.99% 292

Freddie Mac Notes 04/03/2017 01/17/2020 7,720,983.00 7,604,482.28 (116,500.72) 7,725,000.00 AA+ Aaa AAA 1.52% 474

FHLMC Agency Notes 04/19/2017 04/20/2020 1,729,066.30 1,697,992.45 (31,073.85) 1,735,000.00 AA+ Aaa AAA 1.49% 568

Freddie Mac Notes 07/18/2017 08/15/2019 3,459,906.45 3,428,880.84 (31,025.61) 3,465,000.00 AA+ Aaa AAA 1.45% 319

US Treasury Notes 11/01/2017 10/31/2020 1,409,080.08 1,383,085.05 (25,995.03) 1,425,000.00 AA+ Aaa AAAu 1.76% 762

US Treasury Notes 09/01/2017 08/15/2020 604,858.01 582,920.33 (21,937.68) 585,000.00 AA+ Aaa AAAu 1.44% 685

US Treasury N/B Notes 11/01/2017 04/15/2020 1,990,781.25 1,961,876.00 (28,905.25) 2,000,000.00 AA+ Aaa AAAu 1.69% 563

FHLB Global Note 06/02/2016 06/21/2019 12,604,703.80 12,481,844.57 (122,859.23) 12,610,000.00 AA+ Aaa NR 1.14% 264

FHLBNotes 09/07/2017 09/28/2020 309,004.90 301,271.95 (7,732.95) 310,000.00 AA+ Aaa NR 1.48% 729

FHLBNotes 01/03/2018 09/28/2020 569,548.40 563,670.10 (5,878.30) 580,000.00 AA+ Aaa NR 2.06% 729

FHLBNotes 01/03/2018 09/28/2020 5,303,070.00 5,247,963.00 (55,107.00) 5,400,000.00 AA+ Aaa NR 2.05% 729





FNMA Notes 07/28/2017 07/30/2020 274,166.75 268,741.00 (5,425.75) 275,000.00 AA+ Aaa AAA 1.60% 669

FHLMC Notes 12/01/2017 11/17/2020 4,087,167.00 4,018,090.20 (69,076.80) 4,100,000.00 AA+ Aaa AAA 1.99% 779

US Treasury Notes 06/27/2016 04/30/2019 3,185,414.64 3,090,201.57 (95,213.07) 3,105,000.00 AA+ Aaa AAAu 0.70% 212

FHLMC Notes 10/26/2017 09/29/2020 821,139.00 805,934.25 (15,204.75) 825,000.00 AA+ Aaa AAA 1.79% 730

Federal National Mortgage Association 09/13/2018 10/19/2018 9,491,450.00 9,495,003.00 3,553.00 9,500,000.00 AA+ Aaa AAA 2.04% 19

25

Wtd. Avg.



SANDAG



Federal Home Loan Bank 08/20/2015 10/30/2018 4,994,550.00 4,995,850.00 1,300.00 5,000,000.00 AA+ Aaa AAA 1.16% 30

Federal National Mortgage Association 05/26/2015 11/27/2018 5,576,230.00 5,494,813.50 (81,416.50) 5,500,000.00 AA+ Aaa AAA 1.22% 58

Federal Home Loan Mortgage Corp (Callable) 04/25/2016 01/28/2019 4,993,250.00 4,981,150.00 (12,100.00) 5,000,000.00 AA+ Aaa AAA 1.20% 120

Federal Farm Credit Bank 08/31/2015 01/30/2019 4,004,520.00 3,985,760.00 (18,760.00) 4,000,000.00 AA+ Aaa AAA 1.29% 122

Federal National Mortgage Association (Callable) 10/20/2015 02/25/2019 4,024,800.00 3,983,800.00 (41,000.00) 4,000,000.00 AA+ Aaa AAA 1.11% 148

Federal Home Loan Bank 04/22/2016 03/08/2019 5,057,500.00 4,981,550.00 (75,950.00) 5,000,000.00 AA+ Aaa AAA 1.09% 159

Federal Home Loan Mortgage Corp 05/25/2016 04/15/2019 6,994,820.00 6,950,510.00 (44,310.00) 7,000,000.00 AA+ Aaa AAA 1.15% 197

Federal Farm Credit Bank (Callable) 05/09/2016 05/16/2019 5,500,000.00 5,448,850.00 (51,150.00) 5,500,000.00 AA+ Aaa AAA 1.17% 228


Federal National Mortgage Association (Callable) 10/03/2016 03/30/2020 5,097,450.00 4,988,667.00 (108,783.00) 5,100,000.00 AA+ Aaa AAA 1.26% 547


United States Treasury Note/Bond 09/06/2018 11/30/2018 23,451,347.66 23,464,726.50 13,378.84 23,500,000.00 AA+ Aaa AAA 2.15% 61




United States Treasury Note/Bond 10/13/2016 09/30/2019 4,998,437.50 4,918,750.00 (79,687.50) 5,000,000.00 AA+ Aaa AAA 1.01% 365

United States Treasury Note/Bond 10/13/2016 12/31/2019 4,810,125.00 4,706,812.80 (103,312.20) 4,800,000.00 AA+ Aaa AAA 1.06% 457

Total U.S . Agencies 300,162,377.76$ 297,734,752.44$ (2,427,625.32)$ 300,363,442.69$ 1.64% 254

Corporate Medium Term Notes:

Microsoft Corp Notes 06/17/2016 11/03/2018 1,509,285.00$ 1,498,326.00$ (10,959.00)$ 1,500,000.00$ AAA Aaa AA+u 1.03% 34

Wal-Mart Stores Inc Corp Note 06/17/2016 12/15/2018 1,537,620.00 1,498,036.50 (39,583.50) 1,500,000.00 AA Aa2 AA 0.93% 76

American Express Credit (Callable) Note 09/01/2017 03/03/2020 3,024,630.00 2,966,400.00 (58,230.00) 3,000,000.00 A- A2 A 1.86% 520

American Honda Finance Corp Notes 02/18/2016 02/22/2019 1,144,771.00 1,140,675.34 (4,095.66) 1,145,000.00 A+ A2 NR 1.71% 145

Branch Banking & Trust (Callable) Notes 10/23/2017 02/01/2021 999,540.00 976,017.00 (23,523.00) 1,000,000.00 A- A2 A+ 2.17% 855

Berkshire Hathaway Inc Notes 03/08/2016 03/15/2019 839,361.60 837,108.72 (2,252.88) 840,000.00 AA Aa2 A+u 1.73% 166

Berkshire Hathaway Inc Corporate Notes 08/08/2016 08/15/2019 959,068.80 948,423.36 (10,645.44) 960,000.00 AA Aa2 A+u 1.33% 319

Caterpillar Finl Service Note 09/05/2017 09/04/2020 1,463,769.40 1,429,479.61 (34,289.79) 1,465,000.00 A A3 A 1.88% 705

Chevron Corp Notes 02/28/2017 02/28/2019 1,470,000.00 1,464,531.60 (5,468.40) 1,470,000.00 AA- Aa2 NR 1.69% 151

Credit Suisse New York Cert Deposit 02/07/2018 02/07/2020 1,920,000.00 1,919,145.60 (854.40) 1,920,000.00 A A1 NR 2.67% 495

John Deere Capital Corp Note 01/05/2016 01/08/2019 949,943.00 948,541.75 (1,401.25) 950,000.00 A A2 A 1.95% 100

John Deere Capital Corp Notes 01/03/2018 01/08/2021 419,781.60 412,586.58 (7,195.02) 420,000.00 A A2 A 2.37% 831

General Electric Co Corporate Note 09/25/2017 05/04/2020 3,829,770.00 3,625,975.50 (203,794.50) 3,500,000.00 A A2 A 1.83% 582

Home Depot Inc Corp Notes 05/24/2017 06/05/2020 1,044,393.90 1,028,295.68 (16,098.22) 1,045,000.00 A A2 Au 1.82% 614

Honeywell International Corp Notes 10/23/2017 10/30/2019 544,574.90 539,663.36 (4,911.54) 545,000.00 A A2 A 1.84% 395

IBM Credit Corp Note 09/05/2017 09/06/2019 1,678,723.20 1,662,462.48 (16,260.72) 1,680,000.00 A+ A1 A+ 1.66% 341

JP Morgan Chase & Co Corp Notes 01/03/2017 01/28/2019 1,354,338.00 1,338,836.88 (15,501.12) 1,340,000.00 A- A3 AA- 1.82% 120

26

Wtd. Avg.



SANDAG



State Street Corp Notes 09/01/2017 08/18/2020 3,063,060.00 2,976,882.00 (86,178.00) 3,000,000.00 A A1 AA- 1.81% 688

Toyota Motor Credit Corp Notes 02/16/2016 02/19/2019 699,916.00 697,614.40 (2,301.60) 700,000.00 AA- Aa3 A+u 1.70% 142

Toyota Motor Credit Corp 04/11/2017 04/17/2020 2,039,061.60 2,009,191.92 (29,869.68) 2,040,000.00 AA- Aa3 A+u 1.97% 565

Apple Inc Bonds 02/02/2017 02/07/2020 3,503,282.55 3,463,679.56 (39,602.99) 3,505,000.00 AA+ Aa1 NR 1.92% 495

Wells Fargo & Co Corp Bonds 02/01/2017 01/30/2020 3,626,203.30 3,591,972.51 (34,230.79) 3,635,000.00 A- A2 A+ 2.23% 487

Caterpillar Financial Services 11/13/2015 11/13/2018 2,006,560.00 1,998,430.00 (8,130.00) 2,000,000.00 A A3 A 1.69% 44

Microsoft Corp 07/06/2015 12/06/2018 5,060,450.00 4,994,055.00 (66,395.00) 5,000,000.00 AAA Aaa AA+ 1.26% 67

Exxon Mobil Corp (Callable) 08/04/2016 03/15/2019 8,142,400.00 7,972,472.00 (169,928.00) 8,000,000.00 AA+ Aaa - 1.12% 166

Caterpillar Financial Services 08/31/2016 05/18/2019 2,243,091.20 2,221,685.76 (21,405.44) 2,240,000.00 A A3 A 1.30% 230

Pfizer Inc 06/20/2016 06/03/2019 4,012,200.00 3,967,512.00 (44,688.00) 4,000,000.00 AA A1 A+ 1.34% 246

Pfizer Inc 06/20/2016 06/03/2019 2,006,100.00 1,983,756.00 (22,344.00) 2,000,000.00 AA A1 A+ 1.34% 246

Toyota Motor Credit 01/12/2017 07/18/2019 6,039,300.00 5,974,872.00 (64,428.00) 6,000,000.00 AA- Aa3 A 1.86% 291

Pepsico Inc 08/08/2017 10/04/2019 3,881,748.00 3,846,359.40 (35,388.60) 3,900,000.00 A+ A1 A 1.57% 369

Wells Fargo Bank 09/05/2017 12/06/2019 4,033,000.00 3,961,520.00 (71,480.00) 4,000,000.00 A+ Aa2 AA- 1.77% 432

American Express Credit Corp (Callable) 09/11/2017 03/03/2020 2,822,876.00 2,768,640.00 (54,236.00) 2,800,000.00 A- A2 A 1.86% 520

Total Corporate Medium Notes 77,868,819.05$ 76,663,148.51$ (1,205,670.54)$ 77,100,000.00$ 1.66% 342

Commercial Paper:

BNP Paribas NY Branch Comm Paper 04/16/2018 10/15/2018 839,786.07$ 849,132.15$ 9,346.08$ 850,000.00$ A-1 P-1 F1 2.42% 15

Canadian Imperial Holding Comm Paper 04/16/2018 12/12/2018 836,569.53 845,962.50 9,392.97 850,000.00 A-1 P-1 F1+ 2.42% 73

Credit Agricole Cib Ny Comm Paper 04/16/2018 10/15/2018 839,871.54 849,142.35 9,270.81 850,000.00 A-1 P-1 F1 2.40% 15

JP Morgan Securities LLC Comm Paper 04/16/2018 10/15/2018 839,572.39 849,108.35 9,535.96 850,000.00 A-1 P-1 F1+ 2.47% 15

Mufg Bank Ltd/NY Comm Paper 04/16/2018 10/15/2018 839,444.18 849,116.00 9,671.82 850,000.00 A-1 P-1 NR 2.50% 15

Bank Of Montreal Chicago Comm Paper 09/24/2018 12/27/2018 9,939,013.11 9,940,250.00 1,236.89 10,000,000.00 A-1 P-1 NR 2.35% 88

BNP Paribas NY Branch Comm Paper 04/18/2018 10/18/2018 9,878,508.33 9,987,960.00 109,451.67 10,000,000.00 A-1 P-1 F1 2.42% 18

Canadian Imperial Holding Comm Paper 04/18/2018 11/19/2018 9,858,458.33 9,967,760.00 109,301.67 10,000,000.00 A-1 P-1 F1+ 2.40% 50

Cooperatieve Rabobank U.A. Comm Paper 04/18/2018 12/18/2018 9,837,333.33 9,948,320.00 110,986.67 10,000,000.00 A-1 P-1 NR 2.44% 79

Credit Agricole Cib NY Comm Paper 09/24/2018 12/27/2018 9,939,683.33 9,941,250.00 1,566.67 10,000,000.00 A-1 P-1 F1 2.32% 88

Mufg Bank Ltd/NY Comm Paper 09/24/2018 12/27/2018 9,939,422.22 9,941,000.00 1,577.78 10,000,000.00 A-1 P-1 NR 2.33% 88

Total Commercial Paper 63,587,662.36$ 63,969,001.35$ 381,338.99$ 64,250,000.00$ 2.38% 66

27

Wtd. Avg.



SANDAG



Supra-National Agency Bond/Note

International Finance Corporation Note 01/18/2018 01/25/2021 1,540,457.70$ 1,520,513.30$ (19,944.40)$ 1,545,000.00$ AAA Aaa NR 2.35% 848

Inter-American Development Bank 10/02/2017 11/09/2020 3,638,415.12 3,545,968.13 (92,446.99) 3,605,000.00 AAA Aaa AAA 1.81% 771

Intl Bank Of Reconstruction & Dev Notes 09/27/2017 10/07/2019 1,844,909.00 1,819,815.38 (25,093.62) 1,835,000.00 AAA Aaa AAAu 1.60% 372

Intl Bank Of Reconstruction And Dev Note 09/12/2017 09/12/2020 3,666,180.00 3,578,468.78 (87,711.22) 3,675,000.00 AAA Aaa AAAu 1.64% 713

Int'L Bank For Recon And Development 04/07/2017 04/21/2020 5,025,900.00 4,926,877.50 (99,022.50) 5,000,000.00 AAA Aaa AAA 1.70% 569

Total Supra-National Agency Bond/Notes 15,715,861.82$ 15,391,643.09$ (324,218.73)$ 15,660,000.00$ 1.77% 653

Certificates of Deposits :

Bank Of Nova Scotia Houston Lt CD 04/05/2017 04/05/2019 4,440,000.00$ 4,424,335.68$ (15,664.32)$ 4,440,000.00$ A-1 P-1 NR 1.91% 187

Bank Of Montreal Chicago Cert Deposit 02/08/2017 02/07/2019 5,000,000.00 4,995,135.00 (4,865.00) 5,000,000.00 A-1 P-1 NR 1.90% 130

Mufg Bank Ltd/Ny Cert Deposit 09/25/2017 09/25/2019 1,950,000.00 1,933,988.55 (16,011.45) 1,950,000.00 A-1 P-1 NR 2.07% 360

Nordea Bank Ab NY CD 02/20/2018 02/20/2020 2,875,000.00 2,863,123.38 (11,876.62) 2,875,000.00 AA- Aa3 NR 2.72% 508

Skandinav Enskilda Banken NY CD 08/03/2017 08/02/2019 3,898,479.00 3,874,728.00 (23,751.00) 3,900,000.00 A-1 P-1 NR 1.85% 306

Svenska Handelsbanken NY CD 01/10/2017 01/10/2019 5,000,000.00 4,987,100.00 (12,900.00) 5,000,000.00 A-1+ P-1 NR 1.91% 102

Swedbank (New York) Cert Deposit 11/16/2017 11/16/2020 2,905,000.00 2,847,826.70 (57,173.30) 2,905,000.00 AA- Aa2 NR 2.30% 778

Westpac Banking Corp NY CD 08/03/2017 08/03/2020 3,500,000.00 3,449,761.00 (50,239.00) 3,500,000.00 AA- Aa3 NR 2.05% 673

Canadian Imperial Bank NY CD 12/01/2016 11/30/2018 4,421,548.50 4,420,685.63 (862.87) 4,425,000.00 A-1 P-1 NR 1.78% 61

Total Certificates of Deposits 33,990,027.50$ 33,796,683.94$ (193,343.56)$ 33,995,000.00$ 2.01% 300

Asset-Backed Security :

Ally ABS 03/21/2017 08/15/2021 799,905.68$ 794,006.00$ (5,899.68)$ 800,000.00$ NR Aaa AAA 1.79% 1,050

Ally ABS 01/24/2017 06/15/2021 735,557.93 730,457.57 (5,100.36) 735,622.23 NR Aaa AAA 1.70% 989

Allya 11/14/2017 03/15/2022 1,504,883.21 1,484,662.33 (20,220.88) 1,505,000.00 AAA Aaa NR 1.99% 1,262

Harot 11/22/2017 11/21/2021 1,084,847.12 1,072,378.63 (12,468.49) 1,085,000.00 NR Aaa AAA 2.06% 1,148

Honda ABS 03/21/2017 07/21/2021 459,341.13 455,331.58 (4,009.55) 459,368.46 NR Aaa AAA 1.72% 1,025

Hyundai ABS 09/14/2016 04/15/2021 1,076,946.19 1,066,986.98 (9,959.21) 1,077,091.17 AAA Aaa NR 1.30% 928

Hyundai ABS 03/22/2016 09/15/2020 393,138.47 391,664.15 (1,474.32) 393,214.75 AAA Aaa NR 1.57% 716

Hyundai ABS 03/22/2017 08/15/2021 429,965.21 425,347.57 (4,617.64) 430,000.00 AAA NR AAA 1.76% 1,050

Hyundai ABS 08/09/2017 01/15/2022 1,254,782.51 1,235,165.73 (19,616.78) 1,255,000.00 AAA Aaa NR 1.78% 1,203

John Deere ABS 02/22/2017 04/15/2021 529,924.53 525,885.88 (4,038.65) 530,000.00 NR Aaa AAA 1.79% 928

Nissan ABS 04/18/2016 01/15/2021 337,006.35 334,425.63 (2,580.72) 337,058.63 NR Aaa AAA 1.33% 838

Toyota ABS 02/23/2016 03/15/2020 502,093.03 500,197.52 (1,895.51) 502,121.50 AAA Aaa NR 1.25% 532


Taot 01/23/2018 05/16/2022 999,988.50 988,831.70 (11,156.80) 1,000,000.00 AAA Aaa NR 2.35% 1,324

Taot 11/07/2017 01/15/2022 1,229,886.59 1,209,207.10 (20,679.49) 1,230,000.00 AAA Aaa NR 2.26% 1,203


28

Wtd. Avg.



SANDAG



Total Asset-Backed Security 11,973,012.59$ 11,844,990.26$ (128,022.33)$ 11,974,263.07$ 1.82% 1,064

Certificates of Participation:

North County Transit District Certificates of Participation 09/11/2018 12/06/2018 25,550,000.00$ 25,550,000.00$ -$ 25,550,000.00$ NR A1 1.71% 67

Total Certificates of Participation 25,550,000.00$ 25,550,000.00$ -$ 25,550,000.00$ 1.71% 67

Total investments 528,847,761.08$ 524,950,219.59$ (3,897,541.49)$ N/A 1.76% 268

Total Portfolio: 1,127,922,865.38$ 1,124,261,114.13$ (3,661,751.25)$ N/A 1.86% 175

Legend:

Automated Regional Justice Information System (ARJIS)

Commercial Paper (CP)

State of California Local Agency Investment Fund (LAIF)

North County Transit District (NCTD)

San Diego County Regional Transportation Commission (RTC)

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Documents

Item: Board of Directors...Officials will continue to monitor employment and inflation indicators, among other things, in determining future adjustments. However, based on projection