Local Funding Tunica County

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H.E.L.P.

• MDOTS innovative financing program
• City or County issues debt for MDOT projects
• MDOT pays the debt service

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• Due to Legislative Transfers MDOT has had to
  seek other funding sources in order to keep
  needed construction projects on schedule
• (Approximately 263.5 million of legislative
  transfers of highway funds and revenue sources in
  FYs 2003-2006)

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MS Code of 1972, 65-1-8 (2)(z)(Summarized)

• This code section allows the Commission to enter
  into an agreement with a local entity ( an
  Interlocal Agreement) to accelerate the
  completion date of a proposed MDOT highway
  project. The Interlocal Agreement allows the
  local entity to provide the funds for an MDOT
  project (through a local bond issue) and requires
  the Commission to pay the debt service on the
  local bonds (principal and interest). Neither the
  local entity nor the State is liable for the debt
  service on the bond issue, only the Commission
  under the interlocal agreement.

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Funding Mechanics
Local Funding Process
Debt Service
Investors
MDOT
Bonds
County or City



MDOT Hwy Project
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Funding Mechanics
Hancock Bank (Trustee)
Local Funding Process
Bond Proceeds
Reimbursement Requisitions
Bond Proceeds
Bond Proceeds
MDOT
County
MDB
Debt Service (through Loan Agreement)
Debt Service (through Interlocal Cooperative
Agmt.)
MDOT Revenues (pay debt service)
Debt Service (through Bonds)
Bond Proceeds
Contractor Payments
Highway
Bondholders
Federal Reimbursements
State Taxes
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Commission Guidelines for H.E.L.P. Projects

• Statutory requirement- must be on MDOTs existing
  project schedule (6 Year Plan)
• Statutory requirement- debt service on the
  accelerated project cannot begin before
  expenditures under MDOTs original project
  schedule would have begun
• Commission Policy- Issuance limitation
  Commission will limit total financings under
  Section 65-1-8(2)(z) so that MDOTs share (that
  portion not reimbursed by FHWA) of annual debt
  service will not exceed 3.75 of MDOTs annual
  budget.
• (For example, under a 920 million budget the
  maximum amount of projects that could be financed
  under 65-1-8(2)(z) is 2.0 billion resulting in
  172.5 million per year annual debt service with
  MDOTs share being 34.5 million or 3.75 of
  920 million.)

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Leveraging Federal Funds

• Commission uses H.E.L.P. on Federal Interstate
  projects which leverages federal funds in two
  ways
• FHWA reimburses MDOT for at least 80 of debt
  service
• After completion of Interstate projects, federal
  funds can be used for maintenance (90 of MDOT
  maintenance costs on interstates are reimbursed
  by FHWA)

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Other Benefits of H.E.L.P. Financing

• Accelerates construction of needed projects
• Builds projects in todays dollars
• Fixes project costs
• Enhances local support and buy-in of projects
• Provides secure source of funds for large
  projects
• Only funding source for large unfunded projects

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Status of Initial Projects to be Funded under
65-1-8(2)(z)

• Bonds Issued
• Highway 304 (I-69) in Tunica County 45 million
• Canal Road (from the Port of Gulfport to
  I-10)102 of 285 million issued
• I-59 Laurel S Curve 32 million
• I-55 Madison/Ridgeland Interchange 145 million
• Interlocal Agreement Executed but no bonds issued
• SR 304/I-269 Marshall County 215 million
• SR 304/I-269 DeSoto County 275 million

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SR 304 Tunica County from US 61 to
I-55Diagram/Map Project Description
40
240

• This project is for the paving and extension of
  Highway 304 from US 61 to Interstate 55
• Bonds issued January 6, 2005
• Completed October 2006

55
40
MEMPHIS
240
240
240
55
72
Tennessee
Mississippi
61
55
78
301
304
304
3
305
Tunica
7
4
Desoto County
Tunica County
The Project connects U.S. Hwy 61 to I-55
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SR 601 Harrison County (Canal Road) from the Port
of Gulfport to I-10 Diagram/Map Project
Description

• This project will provide a four-lane highway,
  built to interstate standards, from I-10 to US 90
  near the Port of Gulfport
• 102M Bonds issued October 19, 2005

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SR 601 Harrison County (Canal Road) from the Port
of Gulfport to I-10 cont Project Phase
Breakdown

• Total cost 285 Million
• Preliminary Engineering Phase
• Environmental, 11/1996
• Design, 3/2005
• Between US 90 and I-10 8 Million

• Right of Way Phase, 3/2006
• Between US 90 and I-10 85 Million
• Construction Phase, 7/2008, 192 Million
• Between 28th Street and the Seaboard Railroad
  27 Million
• I-10 Interchange 65 Million
• Between the Port and 28th Street 75 Million
• 30th Avenue to I-10 (Pave) 25 Million

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Laurel S Curve/I-59 Between 16th Avenue and
4th Avenue in Jones County Diagram/Map Project
Description

• This section of I-59 between 16th Avenue and 4th
  Avenue in Laurel was constructed early on the
  Mississippi Interstate Program.
• Two sharp curves in close proximity, known to
  locals as the S curve, will be reconstructed to
  meet current interstate standards.
• Bonds issued October 19, 2005
• The expected completion date is July 17, 2009

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Laurel S Curve/I-59 Between 16th Avenue and
4th Avenue in Jones County contProject Phase
Breakdown

• Total cost 32 Million
• Preliminary Engineering Right of Way Phases,
  12/1986
• Continued Right of Way Phase, 10/2001
• Construction Phase, 5/2006
• I-59 Between 16th Avenue and 4th Avenue 32
  Million

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I-55 Madison/Ridgeland Interchange Diagram/Map
Project Description

• This project will consist of a split diamond
  interchange, frontage roads and connector roads
  which together provide additional capacity to US
  I-55 from Old Agency road to SR 463, along with
  the connector road of Madison Avenue in Madison,
  MS, from Highland Colony Parkway to US 51 and SR
  463 from Grandview Boulevard/Galleria Parkway to
  US 51, and constructing a multi-lane McClellan Dr
  in Ridgeland, MS, from Highland Colony Parkway to
  US 51
• Bonds issued October 11, 2006

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I-55 Madison/Ridgeland Interchange contProject
Phase Breakdown

• Total cost 155 Million
• Preliminary Engineering Phase
• Environmental, 3/1992
• Design Phase, 7/2005
• I-55 Interchange w/Connectors 2.7 Million
• Right of Way Phase, 7/2006
• I-55 Interchange w/Connectors 17 Million
• Construction Phase, 1/2008
• I-55 Interchange w/Connectors 135.5 Million

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I269/SR304 in Marshall County from the County
Line to the Tennessee State Line Diagram/Map
Project Description
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240
55
40

• This project provides for a four-lane highway,
  built to interstate standards in Marshall County
  from the County line to the Tennessee state line.

MEMPHIS
240
240
240
55
72
Tennessee
Mississippi
61
55
78
301
304
304
3
305
Tunica
7
4
Marshall County
Desoto County
Tunica County
The Project connects SR 304/I269 in Marshall
County from the county line to TN line
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I-269/SR304 in Marshall County from the County
Line to the Tennessee State Line contProject
Phase Breakdown

• Total cost 215 Million
• Preliminary Engineering Phase
• Environmental by TDOT
• Design Phase, 4/2007
• From County Line to Tennessee State Line 7
  Million
• Right of Way Phase, 4/2008
• From County Line to Tennessee State Line 45
  Million
• Construction Phase, 4/2010
• From County Line to Tennessee State Line 163
  Million

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I-269/SR304 in DeSoto County from I-55 to the
County Line Diagram/Map Project Description
40
240
55

• This project provides for a four-lane highway,
  built to interstate standards in Desoto County
  from I-55 to the County line.

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MEMPHIS
240
240
240
55
72
Tennessee
Mississippi
61
55
78
301
304
304
3
305
Tunica
7
4
Marshall County
Desoto County
Tunica County
The Project connects I-269/SR 304 in Desoto
County from I-55 to the county line
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I-269/SR304 in DeSoto County from I-55 to the
County Line cont Project Phase Breakdown

• Total cost 275 Million
• Preliminary Engineering Phase
• Design Phase, 4/2007
• From I-55 to the County Line 5 Million
• Right of Way Phase, 4/2008
• From I-55 to the County Line 45 Million
• Construction Phase, 4/2010
• From I-55 to the County Line 225 Million

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Initial H.E.L.P. Projects 997 million

• Impact of H.E.L.P. Debt Service on MDOT Federal
  Funds
• Minimal impact on MDOTs federal program
• Minimal impact on each category of federal funds

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Debt Service Comparison

• MDOT 4- Lane Debt Service of 26.5 million in
  state funds pays off in FY2008
• H.E.L.P. Debt Service (MDOT share) replaces
  4-Lane debt service

Debt Service reserve fund will retire bonds in
FY2009
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Debt Service Comparison 87-Four Lane H.E.L.P.
Bonds Issued to Date(Tunica County, Canal Road,
Madison and Laurel)
MDOT share of H.E.L.P. debt service
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