TABLE OF CONTENTS Page/ s INTRODUCTION 1 2007 HIGHLIGHTS AND LOANS 2 FINANCIAL CONDITION OF HELP FUND 4-9 HELP PROJECT LOCATION MAP 10 - 11 ¡ 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 transportation 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 eligible 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: Joe Lane, Chair Si Schorr, Vice Chair Delbert Householder Robert Montoya Felipe Andres Zubia Bill Feldmeier Bobbie Lundstrom Phoenix Tucson Thatcher Flagstaff Avondale Prescott Nogales The current members of the HELP Advisory Committee are: John McGee, Chair (as designee of Victor Mendez) Michael Anderson Bill Beyer Gary Bourne Jim Glock Robert Jackson Lela Steffey ADOT Page Glendale Sun City Tucson Casa Grande Mesa 1 2007 HIGHLIGHTS HELP continues to be among the most active State Infrastructure Banks in the nation. The Federal Highway Administration (FHWA) collects loan activity data from the states and periodically publishes this information. As of the September 30, 2006 SIB loan activity report (the latest data available from FHWA), HELP ranked: • • • fourth in total number of approved loans (55); third in total amount of approved loans ($598 million); and second in loan amounts disbursed to recipients ($510 million). Three new HELP loans were approved during the year including: City of Tucson: Mountain Avenue, Roger Rd. to Ft. Lowell Project Date Approved: March 16, 2007 Loan Amount: $14,000,000 Interest Rate: To be determined Project Acceleration: 18 months Project: This loan will help complete the final mile of a demonstration project with the purpose of facilitating the use of alternative modes along major ways of access to and from the University of Arizona campus. It will eliminate the current two-lane uncurbed roadway and replace it with a two-lane, curbed facility that is centered in the right-of-way, allowing for proper travel and bike path widths. Also included in this project is the establishment of intermittent raised medians to encourage traffic calming, continuous sidewalks and a storm drainage system. Town of Oro Valley, La Cañada Drive Widening Project Date Approved: July 20, 2007 Loan Amount: $8,000,000 Interest Rate: 3.20% Project Acceleration: 3 years Project: The Town of Oro Valley will use the proceeds from this loan to complete the widening of the last mile of the major north-south arterial serving the northwest Tucson region (La Cañada). The section between Naranja Drive and Tangerine Road is a two-lane undivided road which creates a major bottle neck congestion problem. The project will eliminate this bottle neck by providing a continuous four-lane divided roadway corridor. 2 City of Bisbee: Arizona Street Reconstruction Project, Date Approved: September 21, 2007 Loan Amount: $2,400,000 Interest Rate: To be determined Project Acceleration: 3 years Project: Arizona Street, located in the Warren District of Bisbee, is the main thoroughfare for the district. Currently the street is in poor condition with multilayered patches, no curbs, substantial drainage issues and severe loss of surface material. This loan will provide a 38’ paved roadway with vertical curb and gutter, 5’ pedestrian walks on both sides, 32 ADA compliant handicap ramps, and improved drainage. The road also provides access to the main commercial area in the district. 3 FINANCIAL CONDITION OF THE HELP FUND Arizona Department of Transportation Highway Expansion and Extension Loan Program Fund Statement of Net Assets For the fiscal years ended June 30, 2007 and 2006 (Unaudited) 2007 2006 $ 130,631,610 $ 88,775,892 746,190 72,715,250 430,840 39,086,414 78,777 122,327 204,294,154 805,271 120,432 129,218,849 Non-current assets: Receivables: Loans Total noncurrent assets Total assets 41,967,252 41,967,252 246,261,406 109,007,095 109,007,095 238,225,944 Liabilities Current Liabilities: Accrued payroll and other accrued expenses Compensated absences Notes payable Total current liabilities 5,350 13,879 154,534,466 154,553,695 5,209 13,021 18,230 Non-current liabilities: Interfund Payable Notes payable Total noncurrent liabilities Total liabilities 20,000,000 20,000,000 174,553,695 20,000,000 150,494,466 170,494,466 170,512,696 71,707,711 $ 71,707,711 67,713,248 $ 67,713,248 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 4 FINANCIAL CONDITION OF THE HELP FUND Arizona Department of Transportation Highway Expansion and Extension Loan Program Fund Statement of Activities For the fiscal years ended June 30, 2007 and 2006 (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 loss Non-operating revenues: Interest on investments Total non-operating revenues Changes in net assets Total net assets - July 1 Total net assets - June 30 2007 2006 2,909,458 2,909,458 3,281,361 3,281,361 197,042 1,144 114,235 886 4,040,000 1,312 4,354,619 <1,445,161> 133,778 962 96,269 667 4,040,000 1,753 4,273,429 <992,068> 5,439,624 5,439,624 3,994,463 67,713,248 $ 71,707,711 5 3,432,020 3,432,020 2,439,952 65,273,296 $ 67,713,248 HIGHWAY EXPANSION AND EXTENSION LOAN PROGRAM (HELP) LOAN STATUS AS OF SEPTEMBER 2007 STATEWIDE LOANS PROJECT SPONSOR PURPOSE OF LOAN PROJECT LOCATION SR260, Show Low to Pinetop LOAN APPROVAL INTEREST RATE* MAXIMUM LOAN FINAL MATURITY DRAWS TO DATE ADOT Reconstruction 02/18/2000 2.93% $5,664,000 Feb-02 $4,666,837 TOWN OF CHINO VALLEY Construction Center Street 03/17/2000 4.50% $300,000 Jan-05 $300,000 ADOT Design, Right of Way 05/19/2000 3.46% $5,707,000 Mar-04 $5,165,861 CITY OF SIERRA VISTA Construction 07/21/2000 4.00% $1,970,000 Jun-03 $1,970,000 LA PAZ COUNTY Reconstruction 12/18/2000 2.93% $2,000,000 Jan-04 $1,448,568 ADOT Reconstruction Various projects state wide Buffalo Soldier Trail 7th St. to SR 90 Salome Road Centennial Wash SR 260, Pinetop to Hon-Dah 01/19/2001 2.93% $8,400,000 May-03 $6,038,856 SANTA CRUZ COUNTY Reconstruction 01/19/2001 3.11% $1,150,000 Jan-07 $643,827 ADOT Design 03/16/2001 3.32% $1,000,000 Jan-05 $1,000,000 CITY OF YUMA Reconstruction 04/20/2001 1.65% $1,000,000 Dec-06 $1,000,000 TOWN OF TAYLOR Reconstruction Paper Mill Road 05/18/2001 3.42% $1,000,000 Jun-05 $1,000,000 ADOT Reconstruction SR 260, Christopher Creek 05/18/2001 2.85% $41,900,000 Jul-05 $37,678,400 TOWN OF PAYSON Reconstruction McLane Road 06/15/2001 3.56% $1,100,000 Jul-06 $1,100,000 CITY OF YUMA Reconstruction 06/15/2001 1.77% $2,000,000 Jul-06 $2,000,000 ADOT Design, Right of Way 09/21/2001 1.76% $3,216,000 Sep-03 $2,031,264 TOWN OF MIAMI Reconstruction 01/18/2002 2.20% $80,000 Jun-05 $80,000 ADOT Construction 03/15/2002 1.35% $13,855,000 Oct-04 $13,855,000 ADOT Construction 03/15/2002 0.86% $9,900,000 Aug-04 $9,900,000 South River Road Naha 'Ta' Dziil Rd Sanders TI Ave. A, 40th Street to Desert Avenue I-8, Giss Parkway Redondo Drive TI SR89A, Glassford Hill Section Rose Road & Sullivan Street SR 89A, Glassford Hill Section Avenue 3E Traffic Interchange OUTSTANDING LOAN BALANCE Paid in full 02/25/2002 Paid in full 01/11/2005 Paid in full 03/16/2004 Paid in full 06/13/2003 Paid in full 05/31/2002 Paid in full 05/20/2003 Paid in full 09/27/2005 Paid in full 01/20/2005 Paid in full 12/05/2006 Paid in full 06/02/2005 Paid in full 06/22/2005 Paid in full 06/30/2006 Paid in full 07/05/2006 Paid in full 09/17/2003 Paid in full 06/02/2005 Paid in full 10/19/2004 Paid in full 8/19/2004 LOAN STATUS AS OF SEPTEMBER 2007 STATEWIDE LOANS PROJECT SPONSOR PURPOSE OF LOAN PROJECT LOCATION SR 89A, Glassford Hill Section US 60/SR 79 Traffic Interchange SR 95, Parker to Lakeside LOAN APPROVAL INTEREST RATE* MAXIMUM LOAN FINAL MATURITY DRAWS TO DATE YAVAPAI COUNTY Construction ADOT Right of Way ADOT Design GILA COUNTY Reconstruction GILA COUNTY Reconstruction 03/15/2002 1.83% $4,500,000 Jun-05 $4,500,000 03/15/2002 1.56% $4,000,000 Oct-04 $2,691,459 03/15/2002 1.14% $500,000 May-05 $500,000 Fossil Creek Road 04/19/2002 1.43% $1,237,500 Mar-09 $1,237,500 $371,220 04/19/2002 1.81% $600,000 Jun-08 $600,000 $150,000 GILA COUNTY Construction 04/19/2002 3.12% $487,500 Dec-08 $487,500 $304,688 ADOT Construction 05/17/2002 1.99% $5,000,000 Jun-06 $5,000,000 YAVAPAI COUNTY Construction 06/21/2002 2.25% $4,500,000 Jun-06 $4,500,000 CITY OF LAKE HAVASU CITY Reconstruction 06/21/2002 1.18% $789,508 Feb-05 $789,508 ADOT Design 06/21/2002 1.35% $650,000 Nov-06 $650,000 CITY OF SAFFORD Construction 20th Avenue 08/16/2002 2.42% $2,000,000 Oct-07 $2,000,000 $180,000 TOWN OF THATCHER Construction 20th Avenue 08/16/2002 1.56% $2,000,000 Oct-07 $2,000,000 $180,000 CITY OF KINGMAN Construction North Bank Street 09/23/2005 3.11% $2,000,000 Nov-11 $2,000,000 $2,000,000 CITY OF TOMBSTONE Construction Yellow Jacket Way 11/18/2005 MOHAVE COUNTY Design and Construction Highway 91, Beaver Dam Wash Bridge 04/21/2006 CITY OF BISBEE Reconstruction Arizona Street 09/21/2007 TOWN OF MAMMOTH Reconstruction Main Street 12/14/2001 Six Shooter Canyon Road Six Shooter Road and Bridge SR 260, Cottonwood to Camp Verde Fain Road Realignment SR 95, North City Limits Fort Grant Road Traffic Interchange OUTSTANDING LOAN BALANCE Paid in full 06/06/2005 Paid in full 10/19/2004 Paid in full 05/19/2005 Paid in full 06/19/2006 Paid in full 05/31/2006 Paid in full 02/01/2005 Paid in full 04/26/2006 To be Determined To be Determined To be Determined $150,000 Nov-10 - - $8,700,000 Jun-10 - - $2,400,000 Oct-10 - - - $334,800 - * Interest rate will be determined by the State Transportation Board when the first construction draw is made. Withdrawn - LOAN STATUS AS OF SEPTEMBER 2007 MAG LOANS PROJECT SPONSOR CITY OF CHANDLER CITY OF MESA ADOT PURPOSE OF PROJECT LOAN LOCATION New Construction Price Freeway: Warner Urban Freeway to Frye System New Construction Red Mountain Freeway: Urban Freeway Country Club to Gilbert 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 3.59% $26,000,000 Jul-02 $26,000,000 Paid in full 11/30/2001 03/20/1998 4.41% $24,000,000 Mar-03 $24,000,000 Paid in full 03/21/2003 11/15/1999 3.92% $100,000,000 Jun-01 $90,324,109 Paid in full 06/28/2001 ADOT/ CITY OF PHOENIX Construction SR 51 Completion Union Hills - L101 11/17/2000 2.48% $22,500,000 Jun-05 $22,500,000 Paid in full 02/17/2005 ADOT Right of Way, Construction Regional Freeway System 09/21/2001 3.30% $50,000,000 Dec-08 $50,000,000 $17,500,000 ADOT Right of Way, Construction Regional Freeway System 11/21/2003 1.44% $80,500,000 Aug-08 $80,500,000 $64,900,000 CITY OF GOODYEAR Design I-10 Widening 04/21/2006 3.13% $7,369,000 Jun-10 $3,650,213 $3,650,213 CITY OF PHOENIX Design, Right of Way, Construction Dixileta Drive TI 11/18/2005 To be Determined $11,900,000 Jun-10 - * Interest rate will be determined by the State Transportation Board when the first construction draw is made. - LOAN STATUS AS OF SEPTEMBER 2007 PAG LOANS PROJECT SPONSOR CITY OF TUCSON ADOT CITY OF TUCSON ADOT PIMA COUNTY PIMA COUNTY ADOT TOWN OF ORO VALLEY TOWN OF ORO VALLEY PURPOSE OF LOAN Street Improvements Design, Right of Way Street Improvements PROJECT LOCATION 6th Avenue, 19th Street to I-10 Various projects in Pima County 6th Avenue, Ajo Way to Rodeo Wash LOAN APPROVAL INTEREST RATE* MAXIMUM LOAN 03/17/2000 4.50% $2,000,000 Jan-05 $2,000,000 05/19/2000 1.77% $5,285,000 Jun-05 $5,285,000 06/15/2001 2.91% $4,500,000 Jan-06 $4,500,000 Construction I-10 / I-19 Interchange 09/21/2001 2.11% $62,500,000 Jan-06 $62,500,000 Street Improvements Street Improvements Ajo Way, Country Club to Alvernon Shannon Road, Ina Rd to Magee Rd I-10 Mainline, Grant to Congress Tangerine Road Widening La Canada Drive Extension 12/14/2001 3.23% $3,700,000 Jul-07 $3,700,000 12/14/2001 3.23% $1,400,000 Jul-07 $1,400,000 03/15/2002 0.86% $5,500,000 Jun-06 $4,098,869 08/16/2002 1.19% $1,716,000 Jul-05 $1,716,000 02/20/2004 2.52% $5,000,000 Feb-08 $5,000,000 $2,500,000 11/19/2004 2.51% $7,000,000 Mar-10 $7,000,000 $2,900,000 05/20/2005 3.06% $4,836,000 Jun-08 $4,836,000 $3,714,000 07/20/2007 3.20% $8,000,000 Aug-12 $8,000,000 $8,000,000 $12,293,000 Jan-09 - - $18,500,000 Jul-09 - - $14,000,000 Jan-11 - - $3,900,000 - Design Construction Construction TOWN OF MARANA Construction PIMA COUNTY Construction TOWN OF ORO VALLEY Construction CITY OF TUCSON Construction ADOT Construction CITY OF TUCSON Construction TOWN OF SAHUARITA Construction Thornydale Road Alvernon Way, River Rd. to Ft. Lowell La Canada Drive Widening Harrison Road I-10, Pinal Air Park to Marana TI Mountain Avenue, Roger Rd. to Ft. Lowell La Canada Phase II 08/20/2004 11/19/2004 03/16/2007 09/23/2005 To be Determined To be Determined To be Determined - * Interest rate will be determined by the State Transportation Board when the first construction draw is made. FINAL DRAWS TO MATURITY DATE Withdrawn OUTSTANDING LOAN BALANCE Paid in full 05/01/2001 Paid in full 06/22/2005 Paid in full 01/03/2006 Paid in full 04/18/2005 Paid in full 01/17/2007 Paid in full 01/17/2007 Paid in full 06/20/2006 Paid in full 08/01/2005 - 10 Map Table 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 36 37 38 Project Name SR260 Showlow to Pinetop Center Street Carr Canyon Rd. - Hunter Canyon Rd. Van’s Trading Post - East of SR264 Lake Havasu Blvd - Old London Bridge Rd. US60 - SR79 TI Glassford Hill Ave 3E SR280 TI Buffalo Soldier Trail Salome Rd. Centennial Wash SR260, Pinetop - Hon-dah South River Rd. Naha Ta Dziil Rd / Sanders TI. Ave. A 40th st to Desert Ave Paper Mill Rd. SR260, Christopher Creek McLane Rd. I-18 - Giss Parkway - Redondo Dr. TI SR89A, Glassford Hill Section Rose Rd. to Sullivan Street SR89A, Glassford Hill Section Avenue 3E TI. SR89A, Glassford Hill Section US60 - SR79 TI SR95 Parker to Lakeside Fossil Creek Rd. Six Shooter Canyon Rd. SR260 Cottonwood to Camp Verde Fain Rd. Realignment SR95, North City Limits Fort Grant Rd. TI 20th Avenue 20th Avenue Six Shooter Rd. and Bridge North Bank Street Highway 91, Beaver Dam Wash Bridge Yellow Jacket Way Arizona Street, Cole Ave to Hazard Street Project Description Reconstruction Construction Design Design Design Design Design Design Construction Reconstruction Reconstruction Reconstruction Design Reconstruction Reconstruction Reconstruction Reconstruction Reconstruction Design Reconstruction Reconstruction Reconstruction Reconstruction Reconstruction Reconstruction Reconstruction Reconstruction Construction Construction Construction Construction Construction Construction Construction Construction Construction Construction Reconstruction Loan Amount $5,664,000 $300,000 $457,000 $500,000 $1,850,000 $600,000 $1,500,000 $800,000 $1,970,000 $2,000,000 $8,400,000 $1,150,000 $1,000,000 $1,000,000 $1,000,000 $41,900,000 $1,100,000 $2,000,000 $3,216,000 $80,000 $13,855,000 $9,900,000 $4,500,000 $4,000,000 $500,000 $1,237,500 $600,000 $5,000,000 $4,500,000 $789,508 $650,000 $2,000,000 $2,000,000 $487,500 $2,000,000 $8,700,000 $150,000 $2,400,000 $139,756,508 City / Location Showlow Chino Valley Cochise Cty Coconino Cty Mohave Cty Pinal Cty Prescott Valley Yuma Sierra Vista La Paz Cty Pinetop Santa Cruz Cty Apache Cty City of Yuma Town of Taylor Gila Cty Payson Yuma Prescott Valley Miami Prescott Valley Yuma Prescott Valley Pinal Cty Parker Gila Cty Gila Cty Yavapai Cty Yavapai Cty Mohave Cty Cochise Cty Safford Thatcher Gila Cty Kingman Mohave Cty Tombstone City of Bisbee 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 6th Avenue Project I-10 - I-19 TI I-10 Mainline Prince Rd. I-10 - I-19 TI th 6 Avenue Project Phase II JCT I-10 / I-19 Phase 1&2 Ajo Way - Country Club Rd -Alvernon Way Shannon Road: Ina Rd - Magee Rd. I-10 Mainline Grant - Congress Tangerine Rd. La Canada Dr. Extension - Tangerine Rd. Thornydale Rd. Reconstruction Harrison Rd., Speedway - Old Spanish Trail I-10 Pinal Park Air Park - Marana TI. Alvernon Way - River Rd. - Lowell Rd. Town of Sahuarita Mountain Ave, Roger Rd., Ft. Lowell Rd. La Canada Drive Widening Street improvements Design Design Design Street improvements Construction Street Improvements Street Improvements Design Construction Construction Reconstruction Construction Construction Construction Construction Reconstruction Construction $2,000,000 $3,285,000 $1,000,000 $1,000,000 $4,500,000 $62,500,000 $3,700,000 $1,400,000 $5,500,000 $1,716,000 $5,000,000 $7,000,000 $12,293,000 $18,500,000 $4,836,000 $3,900,000 $14,000,000 $8,000,000 $160,130,000 Tucson Pima Cty Pima Cty Pima Cty Tucson Tucson Pima Cty Pima Cty Pima Cty Oro Valley Oro Valley Pima Cty Oro Valley Pima Cty Pima Cty Pima Cty Pinal Cty Pinal Cty 1 Red Mountain Country Club - Gilbert Construction 2 Price Freeway - Warner - Frye Construction Above two loans are not included in totals 3 Various: as stipulated / MAG Right of way 4 SR51 Completion Union Hills - L101 Construction 5 Regional Freeway System / MAG ROW Construction 6 Regional Freeway System / MAG ROW Construction 7 Dixileta Drive TI. Construction Design 8 I-10 Widening Grand Total 11 $24,000,000 Mesa $26,000,000 Chandler $100,000,000 $22,500,000 $50,000,000 $80,500,000 $11,900,000 $7,369,000 $272,269,000 $572,155,508 Maricopa Cty Phoenix Maricopa Cty Maricopa Cty Maricopa Cty Goodyear 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