Oregon Transportation Infrastructure Bank (OTIB) Prepared by: Matthew Harris

What is OTIB? Loan program for transportation projects in Oregon Established in 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 Study Newberg-Dundee Bypass City of McMinnville $3,209, % Aa3 (15bps spread) Interest Savings: $58,108 Total Savings: $91,318 (2.18%) Yamhill County $10,366, % A (44bps spread) Interest Savings: $553,628 Total Savings: $594,498 (4.32%)

Local 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 website FASM 14.3 Link to LAG Manual

For More Information, Contact: Matthew Harris Senior Financial Analyst Oregon Department of Transportation (503) Richard Brock Senior Financial Analyst Oregon Department of Transportation (503)