Oregon Transportation Oregon Transportation Infrastructure Bank (OTIB)Infrastructure Bank (OTIB)

Prepared by: Matthew Harris

What is OTIB?• Loan program for transportation projects in

Oregon• Established in 1996-97 as a pilot State

Infrastructure Bank• Capitalization of $58.4 million

Goals of OTIB

• Leveraging Transportation Funds• Accelerating Planned Projects• Improving Communities’ Ability to Meet

Transportation Needs• Encouraging Economic Development• Facilitating Non-Traditional Projects

Who can apply?• State agencies• Cities• Counties• Special Districts

(including LIDs, Transit, Road)

• Tribal Governments• Private Sector

Businesses

What can be funded?• Highway projects (If Federalized, Title 23)• Transit projects (Title 49)• Other infrastructure related projects

Funds Available

• State Highway Funds - $6.5M

• Comingled State/Federal

Highway Funds - $2.1M

• State Highway Funds subject to

Title 23 Requirements - $1.6M

• Transit/Federal Funds - $2.5M

• Available Line of Credit from State Highway

Fund - $7.9M

Highway Projects - Eligible Expenditures

• Preliminary Engineering• Right-Of-Way Acquisition• Roadway Construction• Bridge Rehabilitation & Replacement• Construction Management• Signals• Loan Fee• Other Costs as Identified in State & Federal

Law

Transit Projects – Eligible Expenditures

• Vehicle Purchases• ADA-Related Equipment• Transit Facilities (intermodal facilities,

maintenance facilities, and shelters)• Vanpools• Loan Fee• Other Costs Identified in Federal

Regulations

Loan Process• Project Proposal• Application• Staff Review• CFO or OTC Approval• Terms & Conditions Letter• Loan Documents

Why OTIB?• Generally “AA” Costs of Borrowing Through

Pledge of Higher User Tax Apportionment• Draw Down Construction Loans• Low Cost of Financing (1%)• Very Flexible Terms• No Prepayment Penalty• DOJ Standardized Loan

Documents

Case StudyNewberg-Dundee Bypass

City of McMinnville• $3,209,000• 20 years @ 2.26%• Aa3 (15bps spread)• Interest Savings:

$58,108• Total Savings:

$91,318 (2.18%)

Yamhill County• $10,366,640• 20 years @ 2.26%• A (44bps spread)• Interest Savings:

$553,628• Total Savings:

$594,498 (4.32%)

Local Indirect RatesLocal Indirect Rates

Prepared by: Rich Brock

Cost Terms

• Indirect Costs

• Direct Costs

• Cost Objective

• Indirect Cost Allocation Plan (ICAP)

• Indirect Cost Rate

Local Government Invoices

Review Indirect Cost Rate, Basis & Costs– Approved Rate?– Check website for current list of approved rates– Is the rate current?– What is the direct cost base?– Are they properly applying the rate?– Is the rate consistently applied?– Is there a clear identification of direct/indirect?– Are they charging indirect as direct?

Tools, Resources & Guidelines

• Approved Indirect Cost Rates websitehttp://transnet.odot.state.or.us/cs/fsb/Web%20Components/ICAP.aspx

• FASM 14.3

• Link to LAG Manual

For More Information, Contact:

Matthew HarrisSenior Financial AnalystOregon Department of Transportation(503) 986-3393Matthew.D.Harris@odot.state.or.us

Richard BrockSenior Financial AnalystOregon Department of Transportation(503) 986-3927Richard.M.Brock@odot.state.or.us