Skip to main content

Financial Services

Who We Are

Financial Services has 70 full-time employees. With a biennial operating budget of approximately $29 million (exclusive of debt service). Financial Services manages the Agency’s gross revenues of approximately $5.3 billion, transfers of $895 million, and records and tracks expenditures of $4.1 billion.

What We Do

Financial Services provides a complete range of integrated financial and accounting processes for the Agency.

These processes include:

  • Financial statement preparation;
  • Accounts payable;
  • Accounts receivable;
  • Asset accounting;
  • Audit and collection;
  • Cash forecasting and management;
  • Cost allocation;
  • Financial analysis and reporting policy;
  • Financial forecasting;
  • Fuels tax administration;
  • Funds administration;
  • Innovative finance/debt issuance and management;
  • Payroll.

Services provided include:

  • Administrative services;
  • Financial management;
  • Financial systems development and maintenance.

Resources and Publications

The Oregon Department of Transportation manages multiple bond programs for the State of Oregon, including the Oregon Transportation Investment Act program, the Jobs and Transportation Act program and the lottery-funded ConnectOregon program. Other programs include COP and Article XI-Q GO bond financed facilities projects, and State Highway GO bonds.  The Oregon Department of Transportation's bond programs are generally repaid by either the State Highway Fund – as with Oregon Transportation Investment Act, the Jobs and Transportation Act and most facility bonds – or by Lottery funds. 

 
State Highway Revenue funded programs include:
 
Oregon Transportation Investment Act
 
From 2001 through 2002, the Oregon Legislature approved $500 million in direct revenue bonds for Oregon Transportation Investment Act I and Oregon Transportation Investment Act II modernization and preservation projects.
 
In 2003, the Oregon Legislature approved an additional $1.9 billion in direct revenue bonds for Oregon Transportation Investment Act III to repair or replace state and local bridges, and for modernization projects
 
Jobs and Transportation Act 
 
In 2009, the Oregon Legislature enacted the Jobs and Transportation Act, which among other things, authorized the Oregon Department of Transportation to issue $840 million in direct revenue bonds to finance a specific list of 51 projects set out in the Jobs and Transportation Act.
 
Financial Information
 
 
Highway User Tax Revenue Bond Ratings
 
Fitch: AA+
Moody's: Aa1
Standard and Poor's: AAA
 
State of Oregon General Obligation Bond Ratings
 
Fitch: AA+
Moody's: Aa1
Standard and Poor's: AAA
 
Links
 
Department of Administrative Services
 
For More Information
 
For additional information about any of ODOT'​s bonding programs, please contact:
 
Oregon Department of Transportation
355 Capitol Street NE
Salem, Oregon 97301
 
Lee Helgerson
Phone: (503)986-6634
Fax: (503)986-4141
 
Program Overview
 
The Oregon Transportation Infrastructure Bank is a statewide revolving loan fund designed to promote innovative financing solutions for transportation needs. Oregon’s program was started in 1996 as part of a federal pilot program. Legislative action in 1997 established the program in state law and expanded the bank's authority. Staff support for the program is provided by the Financial Services office of the Oregon Department of Transportation.
 
Eligible Borrowers 
 
Eligible borrowers include cities, counties, transit districts, port authorities, other special service districts, tribal governments, state agencies, and private for-profit and not-for-profit entities.
 
Eligible Projects and Costs
 
Eligible projects include:
  • Highway projects such as roads, signals, intersection improvements, and bridges.
  • Transit capital projects such as buses, equipment, and maintenance or passenger facilities.
  • Bikeway or pedestrian access projects on highway right-of-way.
 
OTIB loans may be used to cover up to 100% of the costs of a transportation project. Eligible project costs include preliminary engineering, environmental studies, acquisition of right-of-way, equipment, construction including project management and engineering, inspections, financing costs and contingencies.
 
Financial Assistance Available
 
The OTIB currently offers direct loans for eligible projects. Loans may be funded from available OTIB resources or through the sale of revenue bonds. If your project requires a form of financial assistance other than a direct loan, please contact OTIB staff to discuss your needs and explore potential solutions.
 
Project Selection and Approval
 
Projects are rated on established criteria by OTIB staff and a regional advisory committee. Three criteria are considered essential and projects must receive passing scores in these criteria to be eligible for funding. Individual criterion ratings are combined to determine an overall project score. Since the criteria ratings are determined by answers to questions in the application, it is important that applicants provide complete information. Incomplete applications will likely receive lower overall scores or may be rejected.
 
Based on the overall ratings, ODOT’s Chief Financial Officer recommends projects to the Oregon Transportation Commission for final approval. Once approved by the Commission, OTIB staff will prepare a letter summarizing the general terms and conditions of the loan, and noting any contingencies that must be satisfied prior to loan closing. Oregon Transportation Commission approval may not be required for loans of less than $1 million.
 
Timeframes 
 
Applications are accepted at any time. Typically, complete applications will be processed in thirty days or less, not including OTC approval. Incomplete applications may require a substantially longer timeframe for processing. A pre-application form is available if you prefer a quick determination of eligibility issues related to your project. Pre-applications generally will be evaluated within one week of receipt.
 
Loan Underwriting
 
Prudent underwriting standards are critical to ensuring that the OTIB operates as a self-sufficient revolving loan fund. OTIB staff will assess the credit quality of the applicant and determine if the resources pledged to repay the loan are reliable and adequate. The applicant’s audited financial statements, budget and other information provided in the application will be used to make this determination.
 
Interest Rates & Loan Terms
 
Loan interest rates will be based on the term of the loan, an evaluation of the credit quality of the applicant and other factors relating to the borrower's repayment ability, and prevailing market rates. Rates generally will be set as of the date of Commission approval and may be fixed or variable. The OTIB staff can provide an estimate of the interest rate for your loan.
 
Repayment of OTIB loans must begin within five years of project completion and must be completed within 30 years or at the end of the useful life of the project, if shorter. Applicants are encouraged to lower borrowing costs by choosing the shortest feasible repayment term, since the interest rate generally will be higher with a longer repayment schedule. In addition, the OTIB favors projects with quick loan repayment schedules.
 
For loans with a term in excess of one year, the department charges a one-percent loan fee at closing. This fee is designed to cover the costs of administering the program and legal review of all loan documents. The fee may be included in the loan request or paid using other funds of the applicant.
 
Loans from the OTIB are typically secured by a pledge of the applicants highway user tax revenues, as well as any funds/accounts related to those revenues. Additional collateral such as facilities, equipment or vehicles may also be required to secure the loan.
 
Prepayments of OTIB loans are not allowed except under the conditions outlined in the loan documents. A penalty of up to two percent of the outstanding loan amount may be assessed for prepayments.
 
Loan Closing
 
After all contingencies have been met, OTIB staff will prepare a complete set of closing documents and forward them to the applicant. The primary loan document is the loan agreement. This document and its exhibits establish the conditions under which the state is willing to make the loan, and the remedies in the event of a default. Other loan documents may include a tax certificate and Internal Revenue Service Form 8038-G. These tax documents may be required in the event that the OTIB loan is funded using bond proceeds or is used as security for future OTIB bond issues.
 
The applicant will need to provide additional documents at closing including a resolution authorizing the borrowing and an opinion of counsel as to the legality of the transaction. The resolution must be adopted by the governing body of the borrower. A 14-day public notice period, in addition to compliance with any other public notice requirements of the applicant, is required.
 
Federal Requirements
 
Projects using federal funds must conform to all relevant federal and state requirements. Many projects are funded solely through state sources; however, some projects may require federal funds to be loaned to a borrower in limited circumstances. Some of the applicable state and federal laws, rules and regulations include:
  • National Environmental Policy Act
  • Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970
  • Civil Rights Act of 1964, including the Disadvantaged Business Enterprise program
  • Davis-Bacon Act and state prevailing wage laws
  • Common Rule with respect to procurement (Title 49 Code of Federal Regulations)
  • Brooks Act (Public Law 92-582)
  • Competitive bidding requirements as contained in state and federal law
  • Buy America
  • Manual of Uniform Traffic Control Devices
  • Americans with Disabilities Act
  • Oregon Administrative Rules (OAR), Chapter 731, Division 30
  • Sections 103 and 141 of the Internal Revenue Code
 
Generally, preparation of bid documents and awarding of contracts will be performed by ODOT for any federally-funded highway project. Please allow sufficient time in your project construction schedule for these activities. Applicants are responsible for ensuring that all federal and state requirements are met during all phases of the project. OTIB and ODOT region staff will monitor projects for compliance with all requirements.
 
ORS 367
 
ORS 367 governs the establishment and use of the OTIB.
 
Administrative Rules
 
The Oregon Transportation Commission has adopted administrative rules governing the operation of the OTIB. These rules are contained in OAR Chapter 731, Division 30. A copy of the rules can be obtained from OTIB staff or from the Secretary of State’s website.
 
Program Description and Application Instructions
 
 
OTIB Annual Reports
 
 
For More Information
 
For additional information about any of ODOT's bonding programs, please contact:
 
Oregon Department of Transportation
355 Capitol Street NE
Salem, Oregon 97301
 
Lee Helgerson
Phone: (503)986-6634
Fax: (503)986-4141
 
Annual Financial Reports
 
 
Highway Revenues Apportionment​
 
Highway revenues in the State of Oregon have several major sources:
 
  • Motor Vehicle Registration and Title Fees;
  • Driver License Fees;
  • Motor Vehicle Fuel Taxes;
  • Weight-Mile Tax.
 
Net revenues from the above taxes and fees are deposited into an account known as the State Highway Fund. With minor exceptions, the Oregon Constitution (Article IX, Section 3a) dedicates the highway revenues for the construction, improvement, maintenance, operation and use of public highways, roads, streets and roadside rest areas. There are several statutory provisions that distribute State Highway Fund revenues (Oregon Revised Statutes - Chapter 366). These are:
 
  • ORS 366.739, distributing revenue raised by taxes and fees in effect prior to 2001.
  • ORS 366.742, distributing revenue raised by tax and fee increases authorized in 2001.
  • ORS 366.747 and ORS 366.749, distributing revenue raised by tax and fee increases authorized in 2003.
  • ORS 366.752, distributing revenue raised by tax and fee increases authorized in 2009.
 
The effect of the statutory provisions is summarized below:
 
STATE
59% distribution.

COUNTIES
25% distribution based on the vehicle registered in each county (ORS 366.764).

CITIES
16% distribution based on population in each city (ORS 366.805).
 
Revenue and Apportionments
NOTE: (For best results when printing Revenue and Apportionment documents, set page size to legal)
 
 
City Population
 
 
County Vehicle Registrations
 
 

Contacts

Your browser is out-of-date! It has known security flaws and may not display all features of this and other websites. Learn how

×