Office of the Director
206 South Seventeenth Avenue
Janet Napolitano
Governor
Victor M. Mendez
Director

December 1, 2004

Phoenix, Arizona 85007-3213
Debra Brisk
Deputy Director

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 2004 Annual Report for the Highway Expansion and Extension Loan Program (HELP).
HELP has enabled many projects across Arizona to be accelerated and the impact of the program can be
seen throughout the State. Forty-six loans totaling nearly $534 million have been approved to date.
During the past year, construction was completed on several major projects funded with HELP loans
including the I-10 / I-19 traffic interchange project in Tucson, and the Avenue 3E traffic interchange
project in Yuma. In addition, progress continues on a number of other projects in both rural and urban
Arizona.
In June, HELP completed a refinancing of all outstanding Board Funding Obligations (BFOs). This
extended the final maturity of the BFOs to fiscal year 2008. The BFOs have enabled HELP to provide
multiple loans for projects that are critical to completing the Maricopa County Regional Freeway System
in 2007. This year, an additional $80.5 million loan was approved for projects on the Regional Freeway
System.
The State Transportation Board, HELP Advisory Committee and ADOT staff look forward to continuing
to assist with the financing of important highway projects in the coming years.
Sincerely,

Victor M. Mendez

TABLE OF CONTENTS
Page/ s
INTRODUCTION

1

2004 HIGHLIGHTS

2 -3

2004 LOANS

4

FINANCIAL CONDITION OF HELP FUND

5 - 10

HELP PROJECT LOCATION MAP

11 - 13

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 provid ing loans or credit
enhancement for highway 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 State
Transportation Board on loan and financial assistance requests.
The current members of the State Transportation Board are:
Bill Jeffers, Chair
Dallas “Rusty” Gant, Vice Chair
Richard “Dick” Hileman
James Martin
Joe Lane
S. L. Schorr
Delbert Householder

Holbrook
Wickenburg
Lake Havasu City
Willcox
Phoenix
Tucson
Thatcher

The current members of the HELP Advisory Committee are:
John McGee, Chair
(as designee of Victor Mendez)
Bill Beyer
David Felix
Jim Glock
Cliff Potts
Paul Schwartz
Lela Steffey

ADOT
Glendale
Sierra Vista
Tucson
Payson
Peoria
Mesa

2004 HIGHLIGHTS

After a year of suspended activity due to funding uncertainties, HELP resumed lending activities
in 2004. Three loans totaling $97.8 million were approved through September 30, 2004, and
significant progress was made on existing loan projects around the State.
The HELP has had a significant statewide impact. Loans have been made in 14 of the 15
counties in the State. Several HELP loans have funded multiple projects further extending the
benefits of the program. The percentage distribution of approved loans by region as of
September 30, 2004 (excluding lo ans approved prior to August 9, 1999) is:
Amount
Maricopa County
Pima County
13 Other Counties

$253.0 million
$103.9 million
$126.5 million

Percentage
Distribution
52.3%
21.5%
26.2%

By December 31, 2004, the legislation creating the HELP requires that 50% of loans be for
projects in Maricopa County, 25% be for projects in Pima County, and the remaining 25% be for
projects in the 13 other counties. No additional loans in Maricopa County or the 13 other
counties are expected to be approved through the end of this calendar year. Applications for
additional projects in Pima County are in process, and the Department expects that the targeted
percentages will be achieved by December 31.
HELP continues to be among the most active State Infrastructure Banks in the nation. The
Federal Highway Administration collects loan activity data from the states and periodically
publishes this information. As of March 31, 2004, HELP ranked:
•
•
•

first in total number of approved loans (45);
third in total amount of approved loans ($521 million); and
second in loan amounts disbursed to recipients ($407 million).

The following table summarizes loan activity by state:

State Infrastructure Bank Loan Agreements by State
As of March 31, 2004

State
Alaska

Number of
Agreements
1

Arizona

45

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
4
1
45
2
2
23
33
15
15
2
2
10
2
2
41
15
36
1
1
8
3
1
44
1
2
1
3
3
8
373

Source: Federal Highway Administration.

Loan Agreement
Amount (000s)
$
2,737

Disbursements
to Date (000s)
$
2,737

521,442

406,849

31
4,400
6,000
747,210
5,715
2,879
1,635
22,207
95,719
92,057
6,792
14,600
27,700
1,713
3,891
185,095
19,846
24,364
15,000
1,311
2,605,000
28,776
1,875
257,860
2,888
800
18,000
2,376
1,813
77,977
$4,799,709

31
1,900
6,000
246,861
5,715
2,879
1,635
22,207
77,000
72,854
6,792
14,600
27,000
1,713
3,891
138,050
18,396
22,756
15,000
1,311
1,765,000
28,776
1,875
250,683
2,888
800
17,985
487
1,813
42,441
$3,209,638

2004 LOANS
Loans approved during the year included the following:
La Canada Drive Extension, Tangerine Road to Moore Road, Town of Oro Valley
Date Approved: February 20, 2004
Loan Amount: $5,000,000
Interest Rate: 2.52%
Project Acceleration: 18 to 24 months
Project: This project will extend La Canada Drive approximately 1.1 miles from
Tangerine Road north to Moore Road. Tangerine and Moore Roads are both east-west
arterials that serve the northern areas of Oro Valley. This segment of La Canada Drive
will be a four- lane median divided arterial with bike lanes, multi- use lanes and turn lanes
as needed.
Harrison Road, Speedway Boulevard to Old Spanish Trail, City of Tucson
Date Approved: August 20, 2004
Loan Amount: $12,293,000
Interest Rate: To be determined.
Project Acceleration: 9 months
Project: The project involves the reconstruction of Harrison Road from a functionally
obsolete two- lane road to a four-lane divided roadway. This will include intersection
improvements, traffic signals, drainage improvements, street lighting, sidewalks,
landscaping and public art.
MAG Regional Freeway System, ADOT
Date Approved: November 21, 2003
Loan Amount: $80,500,000
Interest Rate: 1.44%
Project Acceleration: 84 months
Project: Loan proceeds will be used to fund right-of-way purchases and construction
costs for some of the remaining segments on the Santan and Red Mountain Freeways.
The goal of completing the Regional Freeway System by 2007 continues on track due
partly to funding provided by HELP loans.

FINANCIAL CONDITION OF HELP FUND
Arizona Department of Transportation
Highway Expansion and Extension Loan Program Fund
Statement of Net Assets
For the fiscal years ended June 30, 2004 and 2003
(Unaudited)

FINANCIAL CONDITION OF HELP FUND
Arizona Department of Transportation
2004

2003

$ 92,038,681

$ 96,010,168

135,578
47,349,662

249,902
52,903,160

2,886,158
386,147
142,796,226

1,269,916
380,496
150,813,642

Noncurrent assets:
Receivables:
Loans
Total noncurrent assets
Total assets

83,544,471
83,544,471
226,340,697

83,979,755
83,979,755
234,793,397

Liabilities
Current Liabilities:
Accrued payroll and other accrued expenses
Compensated absences
Notes payable
Total current liabilities

6,711
19,645
142,414,466
142,440,822

4,867
18,685
151,545,066
151,568,618

Noncurrent liabilities:
Interfund Payable
Total noncurrent liabilities
Total liabilities

20,000,000
20,000,000
162,440,822

20,000,000
20,000,000
171,568,618

63,899,875
$ 63,899,875

63,224,779
$ 63,224,779

Assets
Current assets:
Restricted cash on deposit with the State Treasurer
Receivables:
Accrued interest
Loans
Due from other Arizona Department of Transportation
funds
Due from Arizona counties and cities
Total current assets

Net assets
Restricted for loans and other financial assistance
Total net assets

Highway Expansion and Extension Loan Program Fund
Statement of Activities
For the fiscal years ended June 30, 2004 and 2003
(Unaudited)

Operating revenues:
Interest on loans receivables
Total operating revenues
Operating expenses:
Salaries and related benefits
Supplies
Professional and outside services
Travel
Interest on notes payable
Other
Total operating expenses
Operating income <loss>
Non-operating revenues <expenses>:
Interest on investments
Distribution to other state agencies
Total non-operating revenues <expenses>
Changes in net assets
Total net assets - July 1
Total net assets - June 30

2004

2003

3,529,351
3,529,351

3,881,239
3,881,239

214,707
1,463
98,560
711
4,097,236
1,024
4,413,701
<884,350>
1,559,446
1,559,446
675,096
63,224,779
$ 63,899,875

217,411
1,388
118,463
1,561
6,008,600
1,116
6,348,539
<2,467,300>
2,399,250
<20,000,000>
<17,600,750>
<20,068,050>
83,292,829
$ 63,224,779

HIGHWAY EXPANSION AND EXTENSION LOAN PROGRAM
(HELP)
LOAN STATUS AS OF SEPTEMBER 2004
STATEWIDE LOANS
PROJECT
SPONSOR

PURPOSE OF
LOAN

PROJECT
LOCATION

LOAN
APPROVAL

INTEREST
RATE*

MAXIMUM
LOAN

FINAL
DRAWS TO
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
2/25/2002

TOWN OF CHINO
VALLEY

Construction

Center Street

03/17/2000

4.50%

$300,000

Jan-05

$300,000

$60,000

ADOT

Design,
Right of Way

Various projects state
wide

05/19/2000

3.46%

$5,707,000

Mar-04

$5,165,861

Paid in full
03/16/2004

CITY OF
SIERRA VISTA

Construction

Buffalo Soldier Trail
7th St. to SR 90

07/21/2000

4.00%

$1,970,000

Jun-03

$1,970,000

Paid in full
6/13/2003

LA PAZ COUNTY

Reconstruction

Salome Road Centennial Wash

12/18/2000

2.93%

$2,000,000

Jan-04

$1,448,568

Paid in full
5/31/2002

ADOT

Reconstruction

SR 260, Pinetop
to Hon-Dah

01/19/2001

2.93%

$8,400,000

May-03

$6,038,856

Paid in full
5/20/2003

SANTA CRUZ
COUNTY

Reconstruction

South River Road

01/19/2001

3.11%

$1,150,000

Jan-07

$643,827

$318,827

ADOT

Design

Naha 'Ta' Dziil Rd
Sanders TI

03/16/2001

3.32%

$1,000,000

Dec-04

$1,000,000

$129,618

CITY OF YUMA

Reconstruction

Ave. A, 40th Street to
Desert Avenue

04/20/2001

1.65%

$1,000,000

Dec-06

$1,000,000

$600,000

TOWN OF
TAYLOR

Reconstruction

Paper Mill Road

05/18/2001

3.42%

$1,000,000

Jun-05

$1,000,000

$100,000

ADOT

Reconstruction

SR 260,
Christopher Creek

05/18/2001

2.85%

$41,900,000

Jul-05

$37,653,000

$653,000

TOWN OF
PAYSON

Reconstruction

McLane Road

06/15/2001

3.56%

$1,100,000

Jul-06

$1,100,000

$787,385

CITY OF YUMA

Reconstruction

I-8, Giss Parkway Redondo Drive TI

06/15/2001

1.77%

$2,000,000

Jul-06

$2,000,000

$1,000,000

ADOT

Design,
Right of Way

SR89A, Glassford
Hill Section

09/21/2001

1.76%

$3,216,000

Sep-03

$2,031,264

Paid in full
9/17/2003

TOWN OF MIAMI

Reconstruction

Rose Road &
Sullivan Street

01/18/2002

2.20%

$80,000

Jun-05

$80,000

$26,500

PROJECT
SPONSOR

PURPOSE OF
LOAN

ADOT

Construction

ADOT

Construction

YAVAPAI COUNTY

Construction

ADOT

Right of Way

ADOT

Design

GILA COUNTY

Reconstruction

GILA COUNTY

Reconstruction

ADOT

Construction

YAVAPAI COUNTY

Construction

CITY OF LAKE
HAVASU CITY

Reconstruction

ADOT

Design

CITY OF SAFFORD

Construction

TOWN OF
THATCHER

PROJECT
LOCATION
SR 89A, Glassford
Hill Section

LOAN
APPROVAL

INTEREST
RATE*

MAXIMUM
LOAN

03/15/2002

1.35%

$13,855,000

Oct-04

$13,855,000

$300,000

03/15/2002

0.86%

$9,900,000

Aug-04

$9,900,000

Paid in full
8/19/2004

03/15/2002

1.83%

$4,500,000

Jun-05

$4,500,000

$1,687,500

03/15/2002

1.56%

$4,000,000

Oct-04

$2,691,459

$672,865

03/15/2002

1.14%

$500,000

Jan-05

$500,000

$255,766

04/19/2002

1.43%

$1,237,500

Mar-09

$1,237,500

$1,113,750

04/19/2002

1.81%

$600,000

Jun-08

$600,000

$600,000

05/17/2002

1.99%

$5,000,000

Jun-06

$5,000,000

$5,000,000

06/21/2002

2.25%

$4,500,000

Jun-06

$4,500,000

$3,937,500

06/21/2002

1.18%

$789,508

Feb-05

$789,508

$394,754

06/21/2002

1.35%

$650,000

Nov-06

$510,260

$510,260

20th Avenue

08/16/2002

2.42%

$2,000,000

Oct-07

$2,000,000

$1,825,000

Construction

20th Avenue

08/16/2002

1.56%

$2,000,000

Oct-07

$2,000,000

$1,915,000

GILA COUNTY

Construction

Six Shooter Road and
Bridge

04/19/2002

To be
Determined

$487,500

Jun-08

-

-

TOWN OF
MAMMOTH

Reconstruction

Main Street

12/14/2001

-

$334,800

-

Withdrawn

-

Avenue 3E Traffic
Interchange
SR 89A, Glassford
Hill Section
US 60/SR 79 Traffic
Interchange
SR 95, Parker to
Lakeside
Fossil Creek Road
Six Shooter Canyon
Road
SR 260, Cottonwood
to Camp Verde
Fain Road
Realignment
SR 95, North City
Limits
Fort Grant Road
Traffic Interchange

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

FINAL
DRAWS TO
MATURITY
DATE

OUTSTANDING
LOAN BALANCE

LOAN STATUS AS OF SEPTEMBER 2004
MAG LOANS
PROJECT
SPONSOR
CITY OF MESA
CITY OF
CHANDLER
ADOT

PURPOSE OF
PROJECT
LOAN
LOCATION
New Construction
Red Mountain
Urban Freeway
Freeway: Country
System
Club to Gilbert
New Construction
Price Freeway:
Urban Freeway
Warner to Frye
System
Purchase of Right
Various: As stipulated
of Way for Urban
in Senate Bill 1201
Freeway System

LOAN
APPROVAL

INTEREST
RATE*

MAXIMUM
LOAN

FINAL
MATURITY

DRAWS TO
DATE

OUTSTANDING
LOAN BALANCE

03/20/1998

4.41%

$24,000,000

Mar-03

$24,000,000

Paid in full
3/21/2003

03/20/1998

3.59%

$26,000,000

Jul-02

$26,000,000

Paid in full
11/30/2001

11/15/1999

3.92%

$100,000,000

Jun-01

$90,324,109

Paid in full
6/28/2001

ADOT/
CITY OF PHOENIX

Construction

SR 51 Completion
Union Hills - L101

11/17/2000

2.48%

$22,500,000

Jun-05

$22,500,000

$3,150,000

ADOT

Right of Way,
Construction

Regional Freeway
System

09/21/2001

3.30%

$50,000,000

Dec-08

$50,000,000

$50,000,000

ADOT

Right of Way,
Construction

Regional Freeway
System

11/21/2003

1.44%

$80,500,000

Aug-08

$20,000,000

$20,000,000

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

LOAN STATUS AS OF SEPTEMBER 2004
PAG LOANS
PROJECT
SPONSOR

PURPOSE OF
LOAN

PROJECT
LOCATION

LOAN
APPROVAL

INTEREST
RATE*

MAXIMUM
LOAN

FINAL
MATURITY

DRAWS TO
DATE

OUTSTANDING
LOAN BALANCE

CITY OF TUCSON

Street
Improvements

6th Avenue, 19th
Street to I-10

03/17/2000

4.50%

$2,000,000

Jan-05

$2,000,000

Paid in full
5/01/2001

ADOT

Design,
Right of Way

Various projects in
Pima County

05/19/2000

1.77%

$5,285,000

Jun-05

$5,285,000

$750,000

CITY OF TUCSON

Street
Improvements

6th Avenue, Ajo Way
to Rodeo Wash

06/15/2001

2.91%

$4,500,000

Jan-06

$4,500,000

$2,100,000

ADOT

Construction

I-10 / I-19 Interchange

09/21/2001

2.11%

$62,500,000

Jan-06

$60,784,488

$15,381,029

PIMA COUNTY

Street
Improvements

Ajo Way,
Country Club to
Alvernon Way

12/14/2001

3.23%

$3,700,000

Jul-07

$3,700,000

$1,812,772

PIMA COUNTY

Street
Improvements

Shannon Road
Ina Rd to Magee Rd

12/14/2001

3.23%

$1,400,000

Jul-07

$1,400,000

$650,000

ADOT

Design

I-10 Mainline
Widening, Grant to
Congress

03/15/2002

0.86%

$5,500,000

Jun-05

$2,967,719

$2,467,719

TOWN OF ORO
VALLEY

Construction

Tangerine Road
Widening

08/16/2002

1.19%

$1,716,000

Jul-05

$1,716,000

$780,000

TOWN OF ORO
VALLEY

Construction

La Canada Drive
Extension

02/20/2004

2.52%

$5,000,000

Feb-08

$5,000,000

$5,000,000

CITY OF TUCSON

Construction

Harrison Road,
Speedway Blvd. to
Old Spanish Trail

08/20/2004

To be
Determined

$12,293,000

Oct-08

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

-

-

PROJECT MAP

PROJECT MAP TABLE
STATEWIDE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Project Name
Carr Canyon Rd – Hunter Canyon Rd
Buffalo Soldier Trail
Van’s Trading Post to East of SR264
Salome Rd Centennial Wash Crossing
Lake Havasu Blvd to Old London Bridge Rd
SR260 Showlow – McNary – Eager
Pinetop to Hondah
US60 / SR79 TI
HWY 89 – Center Street traffic signal
Glassford Hill
Ave 3E SR280 TI
South River Rd
St. Johns – Sanders Highway
Ave. A Reconstruction
Paper Mill Rd. Improvement
SR260 Christopher Creek Segment
McLane Road Reconstruction
I-18 / Giss Parkway / Redondo Dr. TI
89A Glassford Hill
Main Street
Sullivan Street / Rose Road
Ave 3E
US60 / SR79 TI
89A Glassford Hill
SR95
89A Glassford Hill
Fossil Creek Road
Six Shooter Canyon Road
Six Shooter Road and Bridge
SR260 Cottonwood to Camp Verde
SR95 North City Limits “Centre”
Fort Grant Road TI
Fain Rd. Realignment
20 th Avenue
20 th Avenue

Project Description
Design
Construction
Design
Reconstruction
Design
Reconstruction
Reconstruction
Design
Construction
Design
Design
Reconstruction
Design
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Design
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Reconstruction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Sub Total – Statewide total

Loan Amount
$457,000
$1,970,000
$500,000
$2,000,000
$1,850,000
$5,664,000
$8,400,000
$600,000
$300,000
$1,500,000
$800,000
$1,150,000
$1,000,000
$1,000,000
$1,000,000
$41,900,000
$1,100,000
$2,000,000
$3,216,000
$334,800
$80,000
$9,900,000
$4,000,000
$13,855,000
$500,000
$4,500,000
$1,237,500
$600,000
$487,500
$5,000,000
$789,508
$650,000
$4,500,000
$2,000,000
$2,000,000
$126,841,308.00

City / Location
Cochise County
Sierra Vista
Coconino County
La Paz County
Mohave County
Showlow
Pinetop
Pinal County
Chino Valley
Prescott Valley
Yuma
Santa Cruz County
Apache County
City of Yuma
Town of Taylor
Gila County
Payson
Yuma
Prescott Valley
Mammoth
Miami
Yuma
Pinal County
Prescott Valley
Parker
Prescott Valley
Gila County
Gila County
Gila County
Yavapai County
Mohave County
Cochise County
Yavapai County
Safford
Thatcher

CONTINUE PROJECT MAP TABLE
PAG

1
2
3
4
5
6
7
8
9
10
11
12

Project Name
I-10 – I-19 TI
I-10 – I-19 TI
I-10 Mainline Prince Rd
6th Avenue Project
6th Avenue Project Phase II
JCT I-10 / I-19 Phase 1&2
Shannon Road: Ina Rd – Magee Rd
Ajo Way: Country Club Rd- Alvernon Way
I-10 Mainline Grant to Congress
Tangerine Road
Town of Oro Valley
City of Tucson

1
2

MAG
Project Name
Price Freeway – Warner to Frye
Red Mountain Country Club to Gilbert

3
4
5
6
51

Squaw Peak Freeway SR51
Mag System Right of Way
MAG Regional Freeway System
Right of Way Construction
Total projects

Project Description
Design
Design
Design
Street improvements
Street improvements
Construction
Street Improvements
Street Improvements
Design
Construction
Construction
Construction
Sub Total – PAG total

Loan Amount
$3,285,000
$1,000,000
$1,000,000
$2,000,000
$4,500,000
$62,500,000
$1,400,000
$3,700,000
$5,500,000
$1,716,000
$5,000,000
$12,293,000
$103,894,000.00

City / Location
Pima County
Pima County
Pima County
Tucson
Tucson
Tucson
Pima County
Pima County
Pima County
Oro Valley
Oro Valley
Pima County

Project Description
Construction
Construction
Above two loans are not included in totals
Construction
Right of way
RFS Completion
Regional Freeway System
Sub Total – MAG total

Loan Amount
$26,000,000
$24,000,000

City / Location
Chandler
Mesa

$22,500,000
$100,000,000
$50,000,000
$80,500,000
$303,000,000.00

Phoenix
Maricopa County
Maricopa County
Maricopa County

GRAND TOTAL

$533,735,308.00

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