Timing Belt Slipped?

Take a look at the photo below (link to dropbox) of my cam pulleys on my 2003 Tacoma Prerunner 3.4L. I was going up a steep hill near my home when the truck suddenly surged and started missing very badly. The motor did not die, so I turned around and got it back to the house with the motor still running (albeit very rough). The check engine light was on, so I checked it out with my reader and it threw a P0340 "Cam Shaft Positioning Sensor" error. After checking the resistance of that sensor and it coming in good I pulled the front engine cover to discover what you see below. Based on what I see with the pulleys not lining up together at TDC and the motor still turning over, I can't help but think this was just a slip that occurred in the timing belt. Motor and belt has 130K on it (never changed). Could this be anything other than a belt slip? Thanks for any thoughts and replies on the matter.

https://www.dropbox.com/sc/uwfinqsgz8m009z/oZ6n1MYQMO

 

If that picture is of the engine crank at TDC #1, then yep, it skipped a few teeth. Looks like a coolant leak at the front of the intake as well.

 

Yeah it jumped a few teeth. I would replace the belt and water pump now.