AQUILA TAX-FREE FUND OF COLORADO

SCHEDULE OF INVESTMENTS

December 31, 2022

(unaudited)

 

Principal
Amount
  General Obligation Bonds (43.7%)   Ratings Moody's,
S&P and Fitch
  Value    (a)
    City & County (3.3%)            
    Crested Butte, Colorado Fire Protection District            
$1,040,000   4.000%, 12/01/36 Series 2022   A1/NR/NR   $1,053,322    
                 
    Denver, Colorado City & County Elevate            
2,000,000   5.000%, 08/01/33 Series 2022A   Aaa/AAA/AAA   2,380,540    
                 
    Englewood, Colorado            
1,000,000   5.000%, 12/01/30   NR/AA+/NR   1,096,750    
                 
    Wheat Ridge, Colorado Urban Renewal Authority Tax Increment            
1,270,000   5.000%, 12/01/31   NR/AA-/NR   1,461,287    
    Total City & County       5,991,899    
                 
    Lease (0.6%)            
    Colorado State Rural COP            
1,000,000   4.000%, 12/15/35 Series 2020A   Aa2/AA-/NR   1,027,100    
                 
    Metropolitan District (3.4%)            
    Denver, Colorado Urban Renewal Authority, Tax Increment Revenue, Stapleton Senior            
2,600,000   5.000%, 12/01/25 Series A-1   NR/NR/AA-   2,602,314    
                 
    Denver, Colorado Urban Renewal Authority, Tax Increment Revenue, Stapleton Senior            
1,000,000   5.000%, 12/01/25 Series B-1   Aa3/NR/NR   1,061,130    
                 
    Midcities Metropolitan District No.2 Colorado, Special Revenue            
2,365,000   5.000%, 12/01/31 Series 2022 AGMC Insured   A1/AA/NR   2,681,744    
    Total Metropolitan District       6,345,188    
                 
    School Districts (35.7%)            
    Adams 12 Five Star Schools, Colorado            
3,000,000   5.000%, 12/15/25   Aa1/AA/NR   3,136,980    
1,000,000   5.000%, 12/15/25   Aa1/AA/NR   1,069,320    
1,435,000   5.000%, 12/15/29   Aa1/AA/NR   1,560,806    
1,000,000   5.500%, 12/15/31   Aa1/AA/NR   1,152,450    
                 
    Adams & Arapahoe Counties, Colorado Joint School District #28J            
1,000,000   5.000%, 12/01/30   Aa1/NR/AA   1,086,470    
                 
    Adams & Weld Counties, Colorado School District #27J            
2,000,000   5.000%, 12/01/24   Aa2/AA/NR   2,003,320    
1,000,000   5.000%, 12/01/25   Aa2/AA/NR   1,042,160    
1,060,000   5.000%, 12/01/28   Aa2/AA/NR   1,126,621    
3,895,000   5.000%, 12/01/29   Aa2/AA/NR   4,139,801    
1,150,000   5.000%, 12/01/29   Aa2/AA/NR   1,269,577    
                 

 

 

 
 
 

 

 

Principal
Amount
  General Obligation Bonds (continued)   Ratings Moody's,
S&P and Fitch
   Value    (a)
    School Districts (continued)            
    Arapahoe County, Colorado School District #001 Englewood            
$1,465,000   5.000%, 12/01/27   Aa2/NR/NR   $1,556,665    
                 
    Arapahoe County, Colorado School District #006 Littleton            
1,000,000   5.000%, 12/01/27   Aa1/NR/NR   1,077,350    
                 
    Boulder, Larimer & Weld Counties, Colorado Series A            
2,000,000   5.000%, 12/15/24   Aa1/AA+/NR   2,087,820    
                 
    Boulder, Larimer & Weld Counties, Colorado Series C            
2,000,000   5.000%, 12/15/28   Aa1/AA+/NR   2,173,000    
                 
    Boulder, Larimer & Weld Counties, Colorado, St. Vrain Valley School District   RE-1J            
1,000,000   5.000%, 12/15/29 Series C   Aa1/AA+/NR   1,085,720    
                 
    Costilla County, Colorado School District No. R-30 Sierra Grande            
2,180,000   5.000%, 12/01/32   Aa2/NR/NR   2,465,558    
                 
    Denver, Colorado City & County School District No. 1            
2,000,000   5.000%, 12/01/29   Aa1/AA+/AA+   2,175,260    
1,000,000   5.000%, 12/01/34 Series 2022A   Aa1/AA+/AA+   1,166,600    
                 
    Denver, Colorado City & County School District No. 1            
2,000,000   5.000%, 12/01/25 Series B   Aa1/AA+/AA+   2,086,980    
4,000,000   5.000%, 12/01/27 Series B   Aa1/AA+/AA+   4,169,400    
                 
    Eagle County School District, Colorado, Eagle, Garfield & Routt School District #50J            
1,000,000   5.000%, 12/01/29   Aa1/AA/NR   1,084,530    
                 
    El Paso County, Colorado School District #2, Harrison            
2,000,000   5.000%, 12/01/31   Aa2/AA/NR   2,248,980    
                 
    El Paso County, Colorado School District #20 Refunding            
2,255,000   5.000%, 12/15/29   Aa1/NR/NR   2,449,178    
                 
    Jefferson County, Colorado School District #R-1 Refunding            
2,225,000   5.000%, 12/15/30     Aa1/AA/NR   2,461,317    
1,500,000   5.000%, 12/15/30     Aa1/AA/NR   1,695,480    
2,600,000   5.000%, 12/15/31   Aa1/AA/NR   2,933,034    
                 
    La Plata County, Colorado School District #9-R Durango Refunding            
3,000,000   4.500%, 11/01/23     Aa2/NR/NR   3,003,510    
                 
    Larimer County, Colorado School District No. R 1 Poudre            
1,000,000   5.000%, 12/15/30   Aa1/NR/AA+   1,126,210    
800,000   5.000%, 12/15/30   Aa1/NR/NR   900,968    
                 
    Larimer, Weld & Boulder Counties, Colorado School District No. R-2J, Thompson            
520,000   5.000%, 12/15/34   Aa2/AA/NR   577,366    
1,100,000   5.000%, 12/15/35   Aa2/AA/NR   1,212,475    

 

 
 
 

 

 

Principal
Amount
  General Obligation Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value    (a)
    School Districts (continued)            
    Larimer, Weld & Boulder Counties, Colorado School District No. R-2J, Thompson Refunding            
$1,500,000   4.250%, 12/15/24   Aa2/NR/NR   $1,501,650    
                 
    Mesa County, Colorado Valley School District No. 051, Grand Junction            
3,000,000   5.000%, 12/01/23   Aa2/NR/NR   3,057,870    
                 
    Pueblo County, Colorado School District No. 70            
1,500,000   4.000%, 12/01/33 Series 2021A   Aa2/AA/NR   1,603,065    
                 
    Summit County, Colorado School District No. RE 1 Refunding            
2,000,000   5.000%, 12/01/28   Aaa/NR/NR   2,172,940    
    Total School Districts       65,660,431    
                 
    Water & Sewer (0.7%)            
    Central Colorado Water Conservancy District, Adams Morgan & Weld Counties            
1,185,000   5.000%, 12/01/24   NR/A/NR   1,207,693    
    Total General Obligation Bonds       80,232,311    
                 
    Revenue Bonds (50.6%)            
    City & County (1.5%)            
    Denver, Colorado City & County COP, Convention Center Expansion Project            
1,500,000   5.000%, 06/01/30 Series 2018A   Aa2/AA+/AA+   1,601,355    
                 
    Grand Junction, Colorado  COP            
1,000,000   5.000%, 12/01/31   NR/AA-/NR   1,130,220    
    Total City & County       2,731,575    
                 
    Electric (2.0%)            
    Colorado Springs, Colorado Utilities Revenue, Refunding            
1,000,000   5.000%, 11/15/27 Series A   Aa2/AA+/AA   1,065,250    
                 
    Colorado Springs, Colorado Utilities Revenue Refunding            
450,000   5.000%, 11/15/33 Series 2022B   Aa2/AA+/NR   530,807    
450,000   5.000%, 11/15/34 Series 2022B   Aa2/AA+/NR   526,203    
                 
    Estes Park, Colorado Power & Communications Enterprise Revenue Refunding & Improvement            
1,310,000   5.000%, 11/01/30 Series 2019A   NR/A+/NR   1,490,623    
    Total Electric       3,612,883    
                 
    Higher Education (14.7%)            
    Colorado Educational & Cultural Facility Authority, University of Denver Project            
845,000   4.000%, 03/01/24   A1/NR/NR   846,411    
7,000,000   5.250%, 03/01/25 NPFG Insured   A1/A+/NR   7,237,930    
                 
    Colorado Educational & Cultural Facility Authority Refunding, University of Denver Project            
1,000,000   5.250%, 03/01/26 NPFG Insured   A1/A+/NR   1,073,180    
                 
    Colorado School of Mines Institutional Enterprise            
1,845,000   5.000%, 12/01/29 Series B   A1/A+/NR   2,028,725    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value    (a)
    Higher Education (continued)            
    Colorado Mountain College COP            
$685,000   4.000%, 12/01/33 Series 2021   Aa3/NR/NR   $712,242    
                 
    Colorado State Board Community Colleges & Occupational Education, Refunding & Improvement, Arapahoe Community College            
1,000,000   5.000%, 11/01/30 Series 2017A   Aa3/NR/NR   1,095,370    
                 
    Colorado State Board Community Colleges & Occupational Education, Refunding & Improvement, System Wide Refunding            
1,710,000   5.000%, 11/01/32 Series 2019A   Aa3/NR/NR   1,937,550    
835,000   5.000%, 11/01/33 Series 2019A   Aa3/NR/NR   943,300    
                 
                 
2,905,000   5.000%, 03/01/26 Series C SHEIP Insured   Aa2/AA/NR   3,037,178    
1,250,000   5.000%, 03/01/28 Series C SHEIP Insured   Aa2/AA/NR   1,367,950    
2,100,000   5.000%, 03/01/29 Series C SHEIP Insured   Aa2/AA/NR   2,297,757    
                 
                 
1,165,000   5.000%, 06/01/26 Series A NPFG Insured   Aa1/NR/AA+   1,255,893    
                 
    University of Colorado Enterprise System            
2,000,000   5.000%, 06/01/28 Series A-1   Aa1/NR/AA+   2,234,900    
                 
    University of Northern Colorado Greeley Institutional Enterprise Refunding            
1,000,000   5.000%, 06/01/25 Series A SHEIP Insured   Aa2/AA/NR   1,027,080    
    Total Higher Education       27,095,466    
                 
    Hospital (1.8%)            
    Colorado Health Facilities Authority, Sanford            
1,000,000   5.000%, 11/01/32 Series 2019A   NR/A+/AA-   1,084,580    
2,165,000   5.000%, 11/01/34 Series 2019A   NR/A+/AA-   2,306,613    
    Total Hospital       3,391,193    
                 
    Lease (13.1%)            
    Arapahoe County, Colorado School District No. 5 Cherry Creek COP            
2,295,000   5.000%, 12/15/33 Series 2022   NR/AA/NR   2,687,560    
                 
    Arvada, Colorado COP            
1,190,000   4.000%, 12/01/29   NR/AA+/NR   1,241,896    
                 
    Colorado State BEST COP            
3,500,000   5.000%, 03/15/30 Series K   Aa2/AA-/NR   3,795,925    
2,500,000   5.000%, 03/15/31 Series K   Aa2/AA-/NR   2,705,200    
                 
    Colorado State BEST COP            
2,000,000   5.000%, 03/15/31 Series M   Aa2/AA-/NR   2,203,480    

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value    (a)
    Lease (continued)            
    Colorado State Higher Education Capital Construction Lease            
$1,690,000   5.000%, 11/01/26   Aa2/AA-/NR   $1,834,461    
                 
    Denver, Colorado City & County COP (Fire Station & Library Facilities)            
1,065,000   5.000%, 12/01/25   Aa1/AA+/AA+   1,133,171    
                 
    Douglas County, Colorado COP (Libraries)            
1,570,000   5.000%, 12/01/27   Aa2/NR/NR   1,629,063    
                 
    Foothills Park and Recreation District, Colorado COP            
1,405,000   4.000%, 12/01/35 Series 2021   NR/AA-/NR   1,457,547    
                 
    Foothills Park and Recreation District, Colorado COP Refunding & Improvement            
1,380,000   5.000%, 12/01/26 AGMC Insured   NR/AA/NR   1,465,546    
                 
    Jefferson County, Colorado School District No. R-1 COP            
1,000,000   5.000%, 12/15/27   Aa3/AA-/NR   1,061,130    
                 
    South Suburban Park and Recreation District, Colorado COP            
1,000,000   5.000%, 12/15/31   NR/AA-/NR   1,107,770    
1,010,000   4.000%, 12/15/35 Series 2021   NR/AA-/NR   1,031,755    
                 
    Thompson School District No R2-J (Larimer, Weld And Boulder Counties, Colorado COP            
750,000   4.500%, 12/01/26 Series 2014   A1/NR/NR   769,163    
    Total Lease       24,123,667    
                 
    Sales Tax (3.1%)            
    Broomfield, Colorado Sales & Use Tax            
1,000,000   5.000%, 12/01/30   Aa3/NR/NR   1,098,190    
                 
    City of Fruita, Colorado Sales & Use Tax              
1,110,000   4.000%, 10/01/33   NR/AA-/NR   1,161,693    
                 
    Commerce City, Colorado Sales & Use Tax            
1,000,000   5.000%, 08/01/26 BAMAC Insured   Aa3/AA/NR   1,056,040    
                 
    Denver, Colorado City & County Dedicated Tax Revenue            
1,165,000   4.000%, 08/01/33 Series 2021A   Aa3/AA-/AA-   1,260,483    
1,000,000   4.000%, 08/01/36 Series 2021A   Aa3/AA-/AA-   1,041,870    
    Total Sales Tax       5,618,276    
                 
    Tax Increment (0.8%)            
    Park Creek, Colorado Metropolitan District Senior Limited Property Tax Supported            
1,475,000   4.000%, 12/01/35 AGMC Insured   NR/AA/A   1,504,677    
                 

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Transportation (5.0%)            
    E-470 Public Highway Authority, Colorado Senior Revenue            
$1,265,000   5.000%, 09/01/36   A2/A/NR   $1,393,423    
1,250,000   5.000%, 09/01/35 Series 2020A   A2/A/NR   1,389,013    
                 
    Regional Transportation District, Colorado COP            
2,000,000   5.000%, 06/01/26 Series A   A1/AA/AA-   2,099,220    
                 
    Regional Transportation District, Colorado Sales Tax Refunding, Fastracks Project            
3,000,000   5.000%, 11/01/32 Series 2013A   Aa2/AA+/AA   3,551,820    
                 
    Roaring Fork Transportation Authority Property Tax Revenue            
650,000   4.000%, 12/01/34 Series 2021A   NR/AA-/NR   691,925    
    Total Transportation       9,125,401    
                 
    Water & Sewer (8.6%)            
    Arapahoe, Colorado Water & Wastewater Public Improvement District            
1,320,000   5.000%, 12/01/24   NR/AA-/NR   1,376,654    
1,020,000   5.000%, 12/01/25   NR/AA-/NR   1,062,422    
                 
    Arvada, Colorado Wastewater Enterprise            
1,090,000   5.000%, 12/01/35   NR/AA-/AA   1,268,607    
                 
    Arvada, Colorado Water Enterprise            
1,355,000   5.000%, 12/01/35   NR/AA+/AA+   1,577,030    
                 
    Broomfield, Colorado Sewer and Waste Water            
1,550,000   5.000%, 12/01/24 AGMC Insured   Aa3/AA/NR   1,552,589    
                 
    Central Weld County, Colorado Water District            
200,000   4.000%, 12/01/33 AGMC Insured   NR/AA/NR   213,162    
                 
    Colorado Water Resource & Power Development Authority            
925,000   5.000%, 09/01/25   Aaa/AAA/AAA   981,286    
                 
    Denver, Colorado City and County Board Water Commissioners            
850,000   5.000%, 09/15/29 Series B   Aaa/AAA/AAA   941,180    
                 
    Greeley, Colorado Water Revenue            
1,705,000   5.000%, 08/01/28   Aa2/AA+/NR   1,842,986    
                 
    Parker, Colorado Water & Sanitation District Water & Sewer Enterprise Refunding & Improvement            
500,000   5.000%, 11/01/33 Series 2022   NR/AA+/NR   587,245    
865,000   5.000%, 11/01/34 Series 2022   NR/AA+/NR   1,011,367    

 

 

 
 
 

 

 

Principal
Amount
  Revenue Bonds (continued)   Ratings Moody's,
S&P and Fitch
  Value   (a)
    Water & Sewer (continued)            
    St. Vrain, Colorado Sanitation District Wastewater Revenue Refunding and Improvement Bonds            
$800,000   4.000%, 12/01/31 Series 2020   NR/AA/NR   $     857,976    
                 
    Thornton, Colorado Water Enterprise Revenue            
1,970,000   4.000%, 12/01/24 Series 2013   Aa2/AA/NR   1,992,793    
                 
    Upper Eagle Regional Water Authority, Eagle County, Colorado Refunding and Improvement            
500,000   4.000%, 12/01/32 AGMC Insured   NR/AA/NR   538,860    
    Total Water & Sewer       15,804,157    
    Total Revenue Bonds       93,007,295    
                 
    Pre-Refunded Bonds (3.5%)††            
    Pre-Refunded General Obligation Bonds (0.6%)            
    School Districts (0.6%)            
    Larimer County, Colorado School District No. R 1 Poudre            
1,000,000   5.000%, 12/15/27     Aa1/NR/NR   1,066,600    
                 
    Pre-Refunded Revenue Bonds (2.9%)            
    Higher Education (1.5%)            
    University of Colorado Enterprise System, Series A            
2,620,000   5.000%, 06/01/29   Aa1/NR/AA+   2,764,388    
                 
    Lease (1.4%)            
    Rangeview Library District Project, Colorado COP            
2,515,000   5.000%, 12/15/27 AGMC Insured   Aa2/AA/NR   2,682,499    
    Total Pre-Refunded Revenue Bonds       5,446,887    
    Total Pre-Refunded Bonds       6,513,487    
    Total Municipal Bonds (cost $182,845,434)       179,753,093    
                 
Shares    Short-Term Investment (1.6%)            
2,857,909   Dreyfus Treasury Obligations Cash Management -
     Institutional Shares, 4.17%* (cost $2,857,909)
  Aaa-mf/AAAm/NR   2,857,909    
                 
    Total Investments
     (cost $185,703,343-note b)
  99.4%   182,611,002    
    Other assets less liabilities   0.6   1,146,492    
    Net Assets   100.0%   $183,757,494    
                 
        Percent of        
    Portfolio Distribution By Quality Rating   Investments†        
    Aaa of Moody's or AAA of S&P or Fitch   3.6%        
    Prerefunded bonds\ ETM bonds ††   3.6        
    Aa of Moody's or AA of S&P or Fitch   82.5        
    A of Moody's or S&P   10.3        
        100.0%        

 

 

 
 
 

 

 

    PORTFOLIO ABBREVIATIONS:            
    AGMC - Assured Guaranty Municipal Corp.            
    BAMAC -Build America Mutual Assurance Company            
    BEST - Building Excellent Schools Today            
    COP - Certificates of Participation            
    NPFG - National Public Finance Guarantee            
    NR - Not Rated            
    SHEIP - State Higher Education Intercept Program            

 

    *    The rate is an annualized seven-day yield at period end.    
           
    †     Where applicable, calculated using the highest rating of the three NRSRO. Percentages in this table do not include the Short-Term Investment.    
           
    ††   Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.      

 

 

See accompanying notes to financial statements.

 

 
 
 

 

AQUILA TAX-FREE FUND OF COLORADO

NOTES TO FINANCIAL STATEMENTS

December 31, 2022

(unaudited)

 

(a)Securities valuation policies and other investment related disclosures are hereby incorporated by reference in the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR. 

 

(b)At December 31, 2022, the net unrealized depreciation on investments, based on cost for federal income tax purposes of $185,665,636 amounted to $3,054,634, which consisted of aggregate gross unrealized appreciation of $673,146 and aggregate gross unrealized depreciation of $3,727,780.

 

(c)Fair Value Measurements: The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s investments and are summarized in the following fair value hierarchy:

 

Level 1 –  Unadjusted quoted prices in inactive markets for identical assets or liabilities that the Fund has the ability to access.
   
Level 2 –  Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
   
Level 3 –  Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

 

The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s net assets as of December 31, 2022:

 

Valuation Inputs   Investments in
Securities
Level 1 – Quoted Prices $ 2,857,909
Level 2 – Other Significant Observable Inputs- Municipal Bonds+   179,753,093
Level 3 – Significant Unobservable Inputs  
Total $ 182,611,002

 

+ See schedule of investments for a detailed listing of securities.