Highway Expansion and Extension Loan Program
Annual Report 2003
TRANSMITTAL LETTER
December 1, 2003

The Honorable Janet Napolitano
Governor, State of Arizona
The Honorable Ken Bennett
President, Arizona State Senate
The Honorable Jake Flake
Speaker, Arizona House of Representatives
Members of the Legislature, and Citizens of the State of Arizona
Pursuant to the requirements of Title 28, Chapter 21, Article 5 Arizona Revised Statutes, I am pleased to present the
2003 Annual Report for the Highway Expansion and Extension Loan Program (HELP).
The impact of the program can be seen throughout Arizona with 43 loans made to date. During the past year,
construction was completed on several projects including the final segment of State Route 51 connecting with Loop
101 in north Phoenix, and the construction of Fain Road in Yavapai County. In addition, progress continues on a
number of other projects including the Interstate 10 and Interstate19 traffic interchange in Tucson and the
reconstruction of State Route 260 in Gila County.
Like the State, the HELP program has faced several funding challenges over the past year. Part of the solution for the
State’s budget shortfall in 2003 included repayment of a $20 million State general fund appropriation that HELP
received in 2001. In addition, the future availability of Board Funding Obligations (BFOs) to capitalize the HELP
became a concern as State fund balances declined. This uncertainty limited the ability of the HELP to approve and
fund new loans in 2003.
The outlook for the HELP has improved with the issuance of a new series of BFOs. This funding will allow the HELP
to provide future loans for projects that are critical to completing the Maricopa County Regional Freeway System in
2007. In addition, the improved outlook for the HELP will allow additional loans to be made for projects in Pima
County.
The State Transportation Board, HELP Advisory Committee and ADOT staff look forward to assisting with the
financing of important transportation projects in the coming years.
Sincerely,

Debra R. Brisk
Deputy Director

INTRODUCTION
The Highway Expansion and Extension Loan Program (HELP) provides the state
and its communities with an innovative financing mechanism to accelerate the
funding of road construction projects. This mechanism is referred to as a State
Infrastructure Bank (SIB) and was initially authorized by Congress in 1995. A
SIB operates like a bank by providing loans or credit enhancement for
transportation projects.
HELP, Arizona’s SIB, was established in 1998, and is operated under the
authority of the State Transportation Board. A seven member HELP Advisory
Committee accepts loan applications, reviews and evaluates requests for financial
assistance, and makes recommendations to the Transportation Board on loan and
financial assistance requests.
The current members of the State Transportation Board are:
Ingo Radicke, Chair

Globe

Bill Jeffers, Vice Chair

Holbrook

Richard “Dick” Hileman

Lake Havasu City

Dallas “Rusty” Gant

Wickenburg

James Martin

Willcox

Joe Lane

Phoenix

S. L. Schorr

Tucson

The current members of the HELP Advisory Committee are:
John McGee, Chair
(as designee of Victor Mendez)

ADOT

Bill Beyer

Glendale

David Felix

Sierra Vista

Jim Glock

Tucson

Cliff Potts

Payson

Tami Ryall

Gilbert

Paul Schwartz

Peoria

2002 HIGHLIGHTS
Even though no additional loans were made in 2003, significant progress was made on existing loan projects around the
state. Some of the projects completed during the year included:
1. McLane Road, Payson – This widening and resurfacing project was completed, increasing safety while allowing
the city to retain the historic nature of the road.
2. Avenue A, 40th Street to Desert Avenue, Yuma – Completion of this project offers a newly widened four-lane road,
allowing better access to the Convention Center and the new Border Patrol Complex.
3. Redondo Drive Traffic Interchange, Yuma – The new interchange allows for easier access to the new commercial
area and the new community college site.
4. US 60 / SR 79 Traffic Interchange, Florence Junction – A HELP loan was used to purchase right of way for a
newly designed interchange.
5. Fain Road, Yavapai County – A new collector road, Fain Road, connects SR 69 with Highway 89A, relieving some
of the congestion on SR 69 into Prescott.
6. SR 51 to Loop 101, Phoenix – This project accelerated the completion of the last segment of SR 51, which now
runs from I-10 to Loop 101 on the north.
7. Shannon Road, Pima County – Major congestion has been eased with completion of a project to widen Shannon
Road, adding new turn lanes and bicycle lanes.
8. Ajo Way, Pima County – Ajo Way was widened to six lanes improving congestion in the newly developing north
area of Pima County.
With the completion of these projects, the true importance of the HELP program is realized. These projects were
accelerated, and in some cases, made possible using HELP loans. The influence of the HELP program is statewide as
evidenced by the percentage distribution of loan dollars by region as of September 30, 2003:

Maricopa County
Pima County
13 other Counties

44.7%
22.5%
32.8 %

The HELP has also been one of the most active State Infrastructure Banks in the nation: second in number of approved
loans; third in total amount of approved loans; and second in loan amounts disbursed to recipients. The following table
summarizes loan activity by state:
State Infrastructure Bank Loan Agreements by State
As of June 30, 2003

State
Alaska

Number of
Agreements
1

Arizona

43

Arkansas
Colorado
Delaware
Florida
Indiana
Iowa
Maine
Michigan
Minnesota
Missouri
Nebraska
New Mexico
New York
North Carolina
North Dakota
Ohio
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Wisconsin
Wyoming
Total

1
8
1
37
2
2
23
23
15
13
1
2
5
2
2
47
14
34
1
1
6
1
1
41
1
4
1
3
3
8
347

Loan Agreement
Amount ($000)
2,737

Disbursements
to Date ($000)
2,737

435,942

352,880

31
5,890
6,000
515,600
6,000
2,874
1,758
17,034
95,719
92,057
3,360
14,133
15,450
1,713
3,565
196,370
19,221
24,252
15,000
1,311
2,643,000
11,740
1,875
252,191
2,888
1,049
18,000
2,375
1,814
77,977
4,488,926

31
5,890
6,000
244,212
5,715
2,874
1,635
13,033
77,000
72,853
3,360
14,133
12,000
1,713
1,565
140,989
18,321
21,265
15,000
1,311
1,545,693
11,740
1,875
244,192
2,888
1,016
12,739
442
1,814
42,441
2,879,357

Source: Federal Highway Administration; ADOT.

FINANCIAL CONDITION OF HELP FUND
Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statement of Net Assets
For the fiscal year ended June 30, 2003 and 2002
(Unaudited)
2003

Assets
Current assets:
Restricted cash on deposit with the State Treasurer

$

Receivables:
Accrued interest
Loans
Due from other Arizona Department of Transportation
funds

2002

96,010,168

$

141,334,598

249,902,
52,903,160

666,035
51,019,947

1,269,916

553,125

308,496

177,279

150,813,642

193,750,984

Loans

83,979,755

55,099,529

Total noncurrent assets

83,979,755

55,099,529

234,793,397

248,850,513

4,867

3,905

18,685

17,313

151,545,066

-

151,568,618

21,218

20,000,000

20,000,000

-

145,536,466

20,000,000

165,536,466

171,568,618

165,557,684

63,224,779

83,292,829

Due from Arizona counties and cities
Total current assets
Noncurrent assets:
Receivables:

Total assets
Liabilities
Current Liabilities:
Accrued payroll and other accrued expenses
Compensated absences
Notes payable
Total current liabilities
Noncurrent liabilities:
Interfund Payable
Notes payable
Total noncurrent liabilities
Total liabilities
Net assets
Restricted for loans and other financial assistance
Total net assets

$

63,224,779

$

83,292,829

FINANCIAL CONDITION OF HELP FUND
Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statement of Activities
For the fiscal year ended June 30, 2003 and 2002
(Unaudited)
2003
Operating revenues:
Interest on loans receivables

2002

3,881,239

$2,226,502

Total operating revenues
Operating expenses:
Salaries and related benefits
Supplies
Professional and outside services
Travel
Interest on notes payable
Other

3,881,239

2,226,502

217,411
1,388
118,463
1,561
6,008,600
1,116

251,220
1,043
139,498
6,126
4,821,052
45,783

Total operating expenses
Operating income <loss>
Non-operating revenues <expenses>:
Interest on investments
Destitution to other state agencies
Total non-operating revenues <expenses>
Changes in net assets
Total net assets - July 1

6,348,539

5,264,722

<2,467,300>

<3,038,220>

2,399,250
<20,000,000>
<17,600,750>

5,540,498
5,540,498

<20,068,050>
$83,292,829

2,502,278
80,790,551

$63,224,779

$83,292,829

Total net assets - June 30

LOAN STATUS AS OF SEPTEMBER 2002
STATEWIDE LOANS
PROJECT PURPOSE OF PROJECT
LOAN
INTEREST MAXIMUM
FINAL
DRAWS TO
SPONSOR
LOAN
LOCATION APPROVAL
RATE*
LOAN
MATURITY
DATE

OUTSTANDING
LOAN
BALANCE

ADOT

Reconstruction

SR260,
Show Low
to Pinetop

02/18/2000

2.93%

$5,664,000

Feb-02

$4,666,837

Paid in full
02/25/2002

TOWN OF
CHINO
VALLEY

Construction

Center
Street

03/17/2000

4.50%

$300,000

Jan-05

$300,000

$120,000

ADOT

Design,
Right of Way

Various
projects
state wide

05/19/2000

3.46%

$5,707,000

Mar-04

$5,165,861

$1,438,276

Buffalo
Soldier Trail
07/21/2000
7th St. to
SR 90

4.00%

$1,970,000

Jun-03

$1,970,000

Paid in full
6/13/03

CITY OF
SIERRA
VISTA

Construction

LA PAZ
COUNTY

Reconstruction

Salome
Road Centennial
Wash

12/18/2000

2.93%

$2,000,000

Jan-04

$1,448,568

Paid in full
05/31/2002

ADOT

Reconstruction

SR 260,
Pinetop
01/19/2001
to Hon-Dah

2.93%

$8,400,000

May-03

$6,038,856

Paid in full
5/20/03

SANTA
CRUZ
COUNTY

Reconstruction

South River
01/19/2001
Road

3.11%

$1,150,000

Jan-05

$643,827

$448,667

ADOT

Design

Naha 'Ta'
Dziil Rd
Sanders TI

03/16/2001

3.32%

$1,000,000

Jun-04

$1,000,000

$800,000

Ave. A, 40th
Street to
Reconstruction
04/20/2001
Desert
Avenue

1.65%

$1,000,000

Dec-06

$1,000,000

$1,000,000

CITY OF
YUMA
TOWN OF
TAYLOR

Reconstruction

Paper Mill
Road

05/18/2001

3.42%

$1,000,000

Jun-05

$1,000,000

$400,000

ADOT

Reconstruction

SR 260,
Christopher 05/18/2001
Creek

2.85%

$41,900,000

Jul-05

$31,860,853

$4,673,712

TOWN OF
PAYSON

Reconstruction

McLane
Road

06/15/2001

3.56%

$1,100,000

Jul-06

$1,100,000

$891,590

CITY OF
YUMA

Reconstruction

I-8, Giss
Parkway Redondo
Drive TI

06/15/2001

1.77%

$2,000,000

Jul-06

$2,000,000

$1,500,000

ADOT

Design, Right
of Way

SR89A,
Glassford
Hill Section

09/21/2001

1.76%

$3,216,000

Sep-03

$2,031,263

Paid in full
9/17/03

Reconstruction

Rose Road
&
Sullivan
Street

01/18/2002

2.20%

$80,000

Jun-05

$80,000

$53,000

ADOT

Construction

SR 89A,
Glassford
Hill Section

03/15/2002

1.35%

$13,855,000

Jun-04

$12,821863,

$5,721,863

YAVAPAI
COUNTY

Construction

SR 89A,
Glassford
Hill Section

03/15/2002

1.83%

$4,500,000

Jun-05

$4,500,000

$3,937,500

ADOT

Right of Way

US 60/SR
79 Traffic 03/15/2002
Interchange

1.56%

$4,000,000

Oct-04

$2,681,459

$2,681,459

ADOT

Design

03/15/2002

1.14%

$500,000

Jan-05

$244,234

$244,234

GILA
COUNTY

Reconstruction

Fossil Creek
04/19/2002
Road

1.43%

$1,237,500

Mar-08

$1,237,500

$1,237,500

ADOT

Construction

SR 260,
Cottonwood
05/17/2002
to Camp
Verde

1.99%

$5,000,000

Jun-06

$5,000,000

$5,000,000

YAVAPAI
COUNTY

Construction

Fain Road
06/21/2002
Realignment

2.25%

$4,500,000

Jun-06

$4,500,000

$4,500,000

CITY OF
LAKE
HAVASU
CITY

Reconstruction

SR 95,
North City
Limits

06/21/2002

1.18%

$789,508

Feb-04

$789,508

$789,508

CITY OF
SAFFORD

Construction

20th
Avenue

08/16/2002

2.42%

$2,000,000

Oct-07

$2,000,000

$2,000,000

TOWN OF
THATCHER

Construction

20th
Avenue

08/16/2002

1.56%

$2,000,000

Oct-07

$2,000,000

$1,915,500

ADOT

Construction

Avenue 3E
Traffic
03/15/2002
Interchange

0.86%

$9,900,000

Jun-04

$4,359,407

$4,359,407

GILA
COUNTY

Reconstruction

Six Shooter
Canyon
Road

04/19/2002

To be
Determined

$600,000

Jun-08

-

-

GILA
COUNTY

Construction

Six Shooter
Road and
Bridge

04/19/2002

To be
Determined

$487,500

Jun-08

-

-

ADOT

Design

Fort Grant
To be
Road Traffic 06/21/2002
Determined
Interchange

$650,000

Nov-06

-

-

Main Street 12/14/2001

$334,800

-

Withdrawn

-

TOWN OF
MIAMI

TOWN OF
Reconstruction
MAMMOTH

SR 95,
Parker to
Lakeside

-

LOAN STATUS AS OF SEPTEMBER 2002
PAG LOANS
PROJECT
SPONSOR
CITY OF
TUCSON

ADOT

CITY OF
TUCSON

ADOT

PURPOSE
OF LOAN

PROJECT
LOAN
INTEREST MAXIMUM
FINAL
DRAWS TO
LOCATION APPROVAL
RATE*
LOAN
MATURITY
DATE

6th Avenue,
Street
19th Street 03/17/2000
Improvements
to I-10

OUTSTANDING
LOAN
BALANCE

4.50%

$2,000,000

Jan-05

$2,000,000

Paid in full
05/01/2001

05/19/2000

1.77%

$5,285,000

Jun-05

$5,285,000

$1,000,000

6th Avenue,
Ajo Way to
Street
06/15/2001
Rodeo
Improvements
Wash

2.91%

$4,500,000

Jan-06

$4,500,000

$2,900,000

I-10 / I-19
09/21/2001
Interchange

2.11%

$62,500,000

Jan-06

$42,148,982

$19,145,523

Design,
Right of Way

Construction

Various
projects in
Pima
County

PIMA
COUNTY

Street
Improvements

Ajo Way,
Country
Club to
Alvernon
Way

PIMA
COUNTY

Street
Improvements

Shannon
Road
Ina Rd to
Magee Rd

12/14/2001

3.23%

$1,400,000

Jul-07

$1,400,000

$950,000

TOWN OF
ORO
VALLEY

Construction

Tangerine
Road
Widening

08/16/2002

1.19%

$1,716,000

Jul-05

$1,716,000

$1,716,000

Design

I-10
Mainline
Widening,
Grant to
Congress

03/15/2002

0.86%

$5,500,000

Jun-04

$1,513,435

$1,513,435

ADOT

12/14/2001

3.23%

$3,700,000

Jul-07

$3,700,000

$2,590,000

LOAN STATUS AS OF SEPTEMBER 2002
MAG LOANS
PROJECT PURPOSE PROJECT
LOAN
INTEREST
SPONSOR OF LOAN LOCATION APPROVAL
RATE*

MAXIMUM
LOAN

New
Construction
Urban
Freeway
System

Red
Mountain
Freeway:
Country
Club to
Gilbert

03/20/1998

4.41%

$24,000,000

Mar-03

$24,000,000

Paid in full
3/21/03

New
Construction
CITY OF
Urban
CHANDLER
Freeway
System

Price
Freeway:
Warner to
Frye

03/20/1998

3.59%

$26,000,000

Jul-02

$26,000,000

Paid in full
11/30/2001

ADOT

Purchase of
Right of
Various: As
Way for
stipulated
11/15/1999
Urban
in Senate
Freeway
Bill 1201
System

3.92%

$100,000,000

Jun-01

$90,324,109

Paid in full
6/28/2001

ADOT/
CITY OF
PHOENIX

SR 51
Completion
Construction
11/17/2000
Union Hills
- L101

2.48%

$22,500,000

Jun-05

$22,500,000

$21,150,000

Right of
Way,
Construction

3.30%

$50,000,000

Dec-86

$50,000,000

$50,000,000

CITY OF
MESA

ADOT

Regional
Freeway
System

09/21/2001

FINAL
DRAWS TO OUTSTANDING
MATURITY
DATE
LOAN
BALANCE

* Interest rate will be determined by the State Transportation Board when the first construction draw is made.

* Interest rate will be determined by the State Transportation Board when the first construction draw is made.

Map Table
STATEWIDE
Project Name

Project
Description

1

Carr Canyon Rd - Hunter Canyon Rd

Design

2

Buffalo Soldier Trail

Construction

3

Van's Trading Post to East of SR264

Design

4

Salome Rd Centennial Wash Crossing Reconstruction

$2,000,000 La Paz County

5

Lake Havasu Blvd to Old London
Bridge Rd

Design

$1,850,000 Mohave County

6

SR260 Showlow - McNary - Eager

Reconstruction

$5,664,000 Showlow

7

Pinetop to Hondah

Reconstruction

$8,400,000 Pinetop

8

US60 / SR79 TI

Design

$600,000 Pinal County

9

HWY 89 - Center Street traffic signal

Construction

$300,000 Chino Valley

10

Glassford Hill

Design

11

Ave 3E SR280 TI

Design

12

South River Rd

Reconstruction

$1,150,000

13

St. Johns - Sanders Highway

Design

$1,000,000 Apache County

14

Ave. A Reconstruction

Reconstruction

$1,000,000 City of Yuma

15

Paper Mill Rd. Improvement

Reconstruction

$1,000,000 Town of Taylor

16

SR260 Christopher Creek Segment

Reconstruction

17

McLane Road Reconstruction

Reconstruction

18

I-18 / Giss Parkway / Redondo Dr. TI Reconstruction

$2,000,000 Yuma

19

89A Glassford Hill

Design

$3,216,000 Prescott Valley

20

Main Street

Reconstruction

21

Sullivan Street / Rose Road

Reconstruction

$80,000 Miami

22

Ave 3E

Reconstruction

$9,900,000 Yuma

23

US60 / SR79 TI

Reconstruction

$4,000,000 Pinal County

24

89A Glassford Hill

Reconstruction

$13,855,000 Prescott Valley

25

SR95

Reconstruction

26

89A Glassford Hill

Reconstruction

$4,500,000 Prescott Valley

27

Fossil Creek Road

Reconstruction

$1,237,500 Gila County

28

Six Shooter Canyon Road

Reconstruction

$600,000 Gila County

29

Six Shooter Road and Bridge

Construction

$487,500 Gila County

30

SR260 Cottonwood to Camp Verde

Construction

$5,000,000 Yavapai County

31

SR95 North City Limits "Centre"

Construction

$789,508 Mohave County

Loan Amount

City / Location

$457,000 Cochise County
$1,970,000 Sierra Vista
$500,000 Coconino County

$1,500,000 Prescott Valley
$800,000 Yuma
Santa Cruz
County

$41,900,000 Gila County
$1,100,000 Payson

$334,800 Mammoth

$500,000 Parker

32

Fort Grant Road TI

Construction

$650,000 Cochise County

33

Fain Rd. Realignment

Construction

$4,500,000 Yavapai County

34

20th Avenue

Construction

$2,000,000 Safford

35

20th Avenue

Construction

$2,000,000 Thatcher
$126,841,308

PAG
Project Name

Project
Description

1

I-10 - I-19 TI

Design

$3,285,000 Pima County

2

I-10 - I-19 TI

Design

$1,000,000 Pima County

3

I-10 Mainline Prince Rd

Design

$1,000,000 Pima County

4

6th Avenue Project

Street
improvements

$2,000,000 Tucson

5

6th Avenue Project Phase II

Street
improvements

$4,500,000 Tucson

6

JCT I-10 / I-19 Phase 1&2

Construction

7

Shannon Road: Ina Rd - Magee Rd

Street
Improvements

$1,400,000 Pima County

8

Ajo Way: Country Club Rd- Alvernon
Way

Street
Improvements

$3,700,000 Pima County

9

I-10 Mainline Grant to Congress

Design

$5,500,000 Pima County

10

Tangerine Road

Construction

$1,716,000 Oro Valley

Loan Amount

City /
Location

$62,500,000 Tucson

$86,601,000

MAG
Project Name

Project
Description

1

Price Freeway - Warner to Frye

Construction

$26,000,000 Chandler

2

Red Mountain Country Club to
Gilbert

Construction

$24,000,000 Mesa

Loan Amount

City /
Location

Above two loans are not included in totals
3

Squaw Peak Freeway SR51

Construction

4

Mag System Right of Way

Right of way

5

MAG Regional Freeway System

RFS Completion

48

Total projects

$22,500,000 Phoenix
$100,000,000 Maricopa County
$50,000,000 Maricopa County
$172,500,000

GRAND TOTAL

$385,942,308

Prepared By:
Arizona Department of Transportation
Financial Management Services
Highway Expansion and Extension Loan Program Section
206 S. 17th Avenue, Suite 200 B
Phoenix, AZ 85007-3213
Phone (602) 712-7441 * Fax (602) 712-6672