2006 Comprehensive Annual Report Annual Report... · John Martinez District Six Secretary, Florida...

2006 Comprehensive Annual Report

Our relationship with the automobile is purposeful. We drive to work. We drive to the store. We drive to visit with friends and family. No matter what our destination is, the focus is getting to where we need to go – without delay.

The Miami-Dade Expressway Authority is the driving force behind saving our customers valuable time on the road. We help keep more than 500,000 cars per day moving safely and effi ciently with the goal of moving Miami-Dade County where it needs to be – as quickly as possible.

MDX is driving residents through 62 miles of user-friendly expressways to help keep our community moving. Our fi ve expressways are critical to connecting South Florida with the rest of the state and beyond.

MDX is driving the expansion of our network of roads and more importantly the state-of-the art technology to support our rapidly growing community. These improvements to our expressway network provide high paying jobs for Miami-Dade residents while improving mobility for all our customers. MDX’s top priority is increasing mobility which is a key to bringing in value added jobs to Miami-Dade County. We are committed to making signifi cant improvements to mobility – the kind of improvements that will support the betterment of Miami-Dade County.

MDX is Driving Toward the Future.

Miami-Dade Expressway Authority

www.mdx-way.com

The Miami-Dade Expressway Authority is committed to helping

improve mobility, economic vitality and the overall quality of life

in Miami-Dade County.

Maritza GutierrezVice-ChairFounder, Creative Ideas

Gene PrescottTreasurerPrincipal Shareholder,The Biltmore Hotel and Affiliates

John MartinezDistrict Six Secretary,Florida Department of Transportation

Maurice A. FerréBusiness Consultant, Office of Maurice A. Ferré

Robert W. Holland, Esq.Law Office of Robert W. Holland

Carlos A. Lacasa, Esq.Law Firm of Ruden McClosky

Cesar LlanoVice President, Century Homebuilders

Roymi V. MembielaAssistant Vice President, Hispanic Marketing & Chief Diversity Officer, Baptist Health South Florida

Arthur Noriega, VExecutive Director,Miami Parking Authority

Justin Sayfie, Esq.Founder, Law Firm of Blosser & Sayfie

Yvonne Soler-McKinleyCity Manager, City of South Miami

Jorge Vigil, Esq.Law firm of Rasco, Reininger, Perez, Esquenazi & Vigil, P.L.

The MDX Board of Directors

Darryl K. Sharpton, C.P.A.ChairmanConsulting Director, Sharpton, Brunson and Company P.A.

Dear MDX Customers,

Today, speed-to-market transportation is the currency of economic development. And in Miami-Dade County, MDX

expressways – with almost half a million riders each day – are the essence of that currency.

Mobility – or the lack of it – impacts our overall quality of life. Bottlenecks are a key impediment to expanding high-wage

jobs in South Florida. Yet studies project traffic congestion to rise exponentially in the years to come. A portion of the

solution lies in improved infrastructure and expanded roadways. As MDX begins a new year, we find ourselves on the

forefront of many initiatives critical to the future economic health of Miami-Dade County.

Working with our transportation partners and community leaders, we have identified those projects where MDX can

invest the toll dollars collected to have the most significant positive impact on mobility for our customers. Key among

them is the “new” SR 836 – the Dolphin Expressway, the critical east-west artery in Miami-Dade. It connects the western

edge of the county with the central business district, Port of Miami, the new cultural heart of our community and the

thousands of homes and businesses in between.

To realize improvements like these for area commuters, MDX has committed one billion dollars over the coming years.

But for MDX – which receives no state or federal funds and no revenue from sales or gas taxes – the funding options

available are limited. Bridging the funding gap is the key.

Toll collection will remain the critical element in funding needed improvements. Consequently, it is critical that our tolling

system be equitable. We took a major step toward equity for all users of our roads with the approval of an Open Road

Tolling Master Plan which charges motorists only for the portion of road they drive. Currently, only 28 percent of the

people who drive on MDX expressways pay a toll; the vast majority ride for free. With the proposed plan everyone pays

their fair share. Any added toll dollars collected would fund much-needed improvements.

This approach to equitable tolling is only in the design phase; we’ve begun a comprehensive long-term outreach program

to obtain public input and help mold the plan. We welcome your thoughts and suggestions.

While transportation is the backbone of our area’s economy, MDX roads provide the backbone for mobility in Miami-

Dade. Our economy, as well as the overall quality of life, depends on improved mobility to keep from stalling. On behalf

of the entire Board of Directors, we pledge to work with transparency in our actions and join with our transportation

partners and the community to find solutions.

Darryl K. Sharpton, CPA

Chairman of the Board

Darryl K. Sharpton, CPAChairman of the Board

From the Executive Director

During the past decade I have had the privilege of serving as the Executive Director of an agency that is at the forefront of

innovation and efficiency in delivering mobility improvements in Miami-Dade County. Since its inception, the Miami-Dade

Expressway Authority has successfully delivered a multitude of transportation improvements that have enhanced the travel

experience on our highways. These enhancements have delivered improved capacity on our highways, have raised the

aesthetics of our travel corridors and have improved the quality of life and economic vitality of South Florida.

As always, our focus on mobility has kept us at the forefront of progress on multiple construction projects. Our

partnerships with other transportation providers and municipalities helped to deliver and address mobility needs

throughout South Florida. Progress was evident in everything we did and do, from internal improvements that made us a

more effective organization to dedicated electronic toll collections throughout the MDX system that relieved congestion

at toll plazas. Innovation continued to characterize MDX’s efforts as we moved closer to equitable tolling through Open

Road Tolling. Most important, 2006 was a year where we built strength throughout MDX. My goal was to improve our

financial position and make changes in the organization that enabled us to operate more effectively, serve our customers

better and utilize our human resources more efficiently.

MDX is headed in the right direction; I have witnessed many improvements in the past ten years. As I approach my

retirement from MDX, I am confident that in the years ahead MDX will build on this solid foundation to continue

delivering comprehensive mobility solutions to our customers.

Sincerely,

Servando M. Parapar, P.E.

Executive Director

Servando M. Parapar, MDX Executive

Director, at the new Dolphin

Expressway Western Extension.

The Miami-Dade Expressway Authority (MDX)

operates and maintains five of the most critical

expressways in Miami-Dade County – Airport

Expressway (SR 112), Dolphin Expressway (SR

836), Don Shula Expressway (SR 874), Snapper

Creek Expressway (SR 878), and Gratigny Parkway

(SR 924). The creation of MDX was driven by the

Miami-Dade Commission and through a transfer

agreement with the State of Florida, MDX maintains

the operating rights and responsibilities of these

roads, which are funded exclusively through toll

revenues. MDX reinvests 100% of toll money

collected in construction and maintenance to make

significant, lasting impacts to mobility throughout

the region.

MDX’s thirteen-member, voluntary Board consists of

business and civic leaders, all with a strong interest

in their community. Florida’s Governor appoints

five members of the Board, while the County

Commission appoints seven. The thirteenth member,

the Florida Department of Transportation District

Six Secretary, serves as an ex-officio member. All

of the board members are residents of Miami-Dade

County, and they make decisions for the greater

good of the community in which they live.

As stewards of your money, MDX brings state-of-

the-art solutions to its commuters with electronic

toll collections, Open Road Tolling, and Intelligent

Transportation Systems. We value your trust and

the responsibility you impart to us of reinvesting

your toll money wisely into the roadway system

improving mobility for you.

The Don Shula Expressway (SR 874) serves commuter traffic traveling from the southwest area of the County.

The Airport Expressway (SR 112) serves east-west commuter traffic in the eastern portion of the County, providing access to and from Miami International Airport (MIA) on the west and to I-95 on the east.

The Dolphin Expressway (SR 836) is oriented in the east-west direction serving as the main expressway link between downtown Miami, the central and western areas of the County, and Miami International Airport.

Snapper Creek Expressway (SR 878) is located between the South Dade Expressway (SR 874) and US 1 and primarily serves commuters within the southwest and Kendall areas of the County with an expressway bypassing busy arterial roadways.

Gratigny Parkway (SR 924) is located in the northern area of the County and provides access to commuters traveling to Miami-Dade County from Broward County as well as the residents of Hialeah and Miami Lakes.

Dolphin Expressway (SR 836) Westbound Auxiliary Laneand NW 57th Avenue Interchange Improvements

These two projects opened to traffic in August and October 2006,

respectively, enhancing mobility along one of the most congested

segments of the Dolphin Expressway (SR 836), between NW 57th

Avenue and the Palmetto Expressway. These projects included

construction of an auxiliary lane from west of NW 57th Avenue to

the Palmetto Expressway, construction of a new bridge crossing the

tracks of CSX Transportation (CSXT) and Florida East Coast (FEC)

railroads, as well as the Venetian Canal and Airport outlet Canal. The

existing bridge structure and westbound exit ramp at the NW 57th

Avenue interchange were widened and improved. This improvement

is a safety enhancement and connects an existing auxiliary lane from

east of the interchange to the new auxiliary lanes.

Dolphin Expressway (SR 836) Extension from NW 137th Avenue to NW 107th Avenue

This is the second phase of the Dolphin

Expressway (SR 836) extension project that

will extend SR 836 from NW 107th Avenue to

NW 137th Avenue including reconstruction

of 137th Avenue from NW 12th Street to SW

8th Street. This project will have a great impact

on traffic patterns throughout Southwest

Miami-Dade, providing a real alternative to the

Turnpike and SW 8th Street. The expansion

will add 3.2 centerline miles to the Dolphin

Expressway (SR 836) and 1.6 centerline miles

west to 137th Avenue, and in so doing provide

much needed expressway access to and from

western Miami-Dade County. This $240 million

project is on schedule to be open to traffic in

spring 2007.

Dolphin (SR 836) Extension, Toll Plaza Section

This is the third phase to the Dolphin Expressway (SR 836) Extension

and provides for the reconstruction of the Dolphin Expressway (SR

836) from west of NW 87th Avenue to NW 107th Avenue including the

construction of a bi-directional toll plaza. On the eastbound direction,

the toll facility will include a total of eight lanes, four will be Express

Electronic Toll Collection (ETC), three manual and one dedicated ETC

lane. On the westbound direction, there will be four Express ETC, four

manual and one dedicated ETC lane. The estimated total project cost

in is $67 million and is scheduled to open to traffic the spring of 2007

concurrently with the second phase of the East-West Expressway (SR

836) Extension. Toll money collected will be used, in part, to help pay

back the bonds which financed the $240 million in construction

for the projects.

Don Shula Expressway (SR 874) / Killian Parkway Interchange

The Killian Parkway Interchange is being

redesigned to improve capacity through

the SW 107th Avenue/Killian Parkway

intersection and alleviate backup of traffic

onto southbound SR 874. Also included

in this project are the construction of

auxiliary lanes (one in each direction) and

the provision of new toll gantries south and

north of Killian Parkway to allow for high-

speed electronic toll collection (Open Road

Tolling). The total estimated cost of this

project is approximately $174 million. MDX

also coordinated the provision and location

of noise walls within the project limits.

Final plans are expected in spring 2007

and construction is planned to begin in the

summer of 2007 for a two-year duration.

Don Shula Expressway (SR 874) EB On-Ramp from Kendall Drive

The planned improvements will provide the capacity needed to maintain an efficient transportation system by providing a new

movement from Kendall Drive to eastbound Don Shula Expressway (SR 874), including noise abatement walls. This new movement

will provide alternatives for commuters thus enhancing mobility. Final design has been completed for this project and construction is

scheduled to begin in March 2007.

Open Road Tolling (ORT) Master Plan and Community Outreach

In May 2006, the Board approved the ORT Master

Plan study developed for the purpose of beginning the

planning effort for ORT, including defining a scope and

schedule for public communication/outreach, establishing

an implementation plan, and refining cost and revenue

projections provided in preliminary studies. ORT will

assist in equalizing tolls for all users of our roads, allowing

motorists to pay only for the portion they drive. Any

added toll dollars would fund much needed improvements.

The ORT pilot project is currently being implemented

as part of the ongoing Dolphin Expressway (SR 836)

extension project (83605). Potential implementation

of ORT for the Don Shula Expressway (SR 874) and

Gratigny Expressway (SR 924) would occur only after

comprehensive community outreach efforts have been

made and MDX’s Public Involvement policy’s requirements

have been met.

assisting in accident scenes and removing debris

from roadways.

Having the right tools available at the touch of

a button continues to be the focus of MDX’s

Information Technology team and helps to maintain

our roads to the highest standards, to meet the

needs of our customers. The development of

specialized data spreadsheets, coupled with the

ability to query the database for specific information,

has enabled MDX to immediately identify potential

system problems in near real-time. Trend analysis

and in-depth scrutiny of data have increased

efficiency and dramatically reduced down time of

the systems operating the toll equipment. Pre-set

messages are received when the system begins

to degrade, allowing for immediate response that

limits lane closures, traffic congestion and potential

revenue loss. Having the ability to compare current

traffic information with historical data allows our

analytical experts to correctly forecast changes and

provide MDX with future needs and requirements.

This ability to respond quickly and forecast potential

problems leads to fewer delays on MDX’s roads for

our users.

In 2006, the Advanced Traveler Information

System (ATIS), which provides real time traffic

and traveler information in South Florida,

upgraded the 511 Traveler Information Service

to an interactive voice recognition system. This

system accesses real time traffic information

from any telephone or the internet for free. The

ATIS program continues to improve its services

providing South Florida travelers with valuable

information about their roads.

As stewards of public money, MDX employs innovative

technological solutions to deliver one of the most

efficient and effective tolling operations in the industry.

The objective of MDX is to keep toll operations costs

below $0.15 per transaction. SunPass® electronic

tolling has surpassed the 60% penetration levels at

several toll plazas, reaching nearly 70% during peak

hours. SunPass technology brings increased mobility

and capacity.

In addition, Emergency Operations and Incident

Management are paramount to ensuring that mobility

in the county is maintained before and after any storm

or incident. MDX refined its Emergency/Incident

Management Plan, which provides Standard Operating

Procedures (SOP) to handle all aspects of preparation

for emergency operations. MDX teamed up with other

tolling agencies throughout the state to adopt SOP’s

that were endorsed by the Governor’s Office, detailing

the requirements for toll suspension and reinstatement

during emergency situations. MDX also participates

in the Florida Department of Transportation’s Road

Rangers Program that patrols the highways providing

assistance to motorists and disabled vehicles, as well as

As part of MDX commitment to improve

mobility in the County, we complete the

design, construction, and installation of

communication infrastructure along SR

836. MDX is deploying a series of Intelligent

Transportation Systems (ITS) components

that will integrate the FDOT SunGuide

Transportation Management Center (SGTMC)

with the MDX Transportation Management

Center (TMC) for the management and

operation of the SR 836 Advanced Traffic

Management System (ATMS) and eventually

the rest of MDX’s roadway system. This

project will also provide the FDOT SGTMC

a direct fiber optic connection to the MDX

TMC for information sharing and emergency

operational control of MDX’s ATMS.

As part of the ongoing effort to reach out to small

and minority businesses in South Florida, MDX held

its annual Procurement Workshop. Attendees were

able to learn firsthand about upcoming business

opportunities as well as the steps to follow to get

involved.

During the 20th annual Red Ribbon Campaign, MDX

teamed with Informed Families, a nonprofit grass

roots volunteer/parent organization that provides

education, training and support centers for parents,

schools and communities to help raise safe, healthy

and drug-free children.

MDX is committed to improving your commute

and safety as you drive their five expressways, by

providing its customers with the Road Rangers

Program. This program provides road side assistance

that helps stranded motorists’ 24-hours a day, seven

days a week at no cost and removes roadway debris

making the roads safer to travel on.

Finally, MDX worked with the Neighbors 4

Neighbors Adopt-A-Family program to help those

in need and provided support for victims of fire

disasters through the American Red Cross.

MDX’s mission is to not only improve mobility, but to

enhance the quality of life for our customers. While

that has its roots in transportation, it extends much

farther into the community we serve.

During the 2005 hurricane season MDX, residents and

elected officials worked closely in the clean up and

mitigation efforts during trying times. The results of

MDX’s commitment to work with the residents along

all our corridors are an example of its commitment to

its neighbors and to the community in general.

Over the past year, MDX sponsored a half-price

transponder promotion to enable more people to

enjoy the time and money saved by using a SunPass.

An overwhelming success, within two months this

program put an additional 8,000 transponders into the

community.

MDX held its Annual Procurement Workshop for small and minority businesses.

MDX participated in the 20th Annual Red Ribbon Campaign with Informed Families.

MDX is committed to the Road Ranger program which helps stranded motorists at no cost and keeps the roadways clear of debris.

FINANCIAL SUMMARY

Where Your Dollar Goes

Debt Breakdown

Interest Expenseand Principal Debt

Toll Operations

Roadway Operations

Consultants

OfficeAdministration Salaries, Taxes

and Benefits

Other CapitalExpenditures

$0.04

$0.35

$0.37

$0.13

$0.07$0.03

$0.01

Toll Dollar BreakdownFY 2006

As of June 30, 2006, the Authority’s

outstanding debt amounted to $706

million comprised of Revenue Bonds

of approximately $645.6 million, State

Infrastructure Bank Loans of approximately

$56.8 million, Toll Facilities Revolving Trust

Funds of approximately $2.3 million and

Florida Department of Transportation loan

of approximately $1.3 million.

RevenueBonds

$56.8

SIB Loans

$1.3

$2.3

FDOT Loan

TFRTF Loans

$645.6

Miami-Dade Expressway AuthorityNet Assets

(In Thousands)

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Total Assets Total Liabilities Total Net Assets

Miami-Dade Expressway AuthorityNet Assets

FY 2002 through FY 2006(In Thousands)

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

AssetsCurrent and Other Assets $ 93,708 $ 94,844 $ 101,850 $ 182,574 $ 127,664

Restricted Assets 124,030 91,929 83,516 277,361 216,977

Capital Assets, net of Accumulated Depreciation 101,935 160,838 290,270 402,310 568,061

Total Assets 319,673 347,611 475,636 862,245 912,702

LiabilitiesCurrent Liabilities 21,118 21,862 31,967 48,274 57,774

Long-Term Debt Outstanding and Other Liabilities 244,914 249,195 344,676 686,393 688,798

Total Liabilities 266,032 271,057 376,643 734,667 746,572

Net AssetsInvested in Capital Assets, Net of Related Debt 29,185 39,614 35,832 55,799 72,877

Restricted 15,001 15,278 15,439 31,951 41,717

Unrestricted 9,455 21,663 47,722 39,828 51,537

Total Net Assets $ 53,641 $ 76,555 $ 98,993 $ 127,578 $ 166,131

As indicated in the graph below, net assets have continued to increase, reflecting MDX’s strong financial position.

Sources:Audited Financial StatementsMDX Finance Office

Miami-Dade Expressway AuthorityRevenues, Expenses and Changes in Net Assets

(In Thousands)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Total Revenues Total Expenses Changes in Net Assets

Miami-Dade Expressway AuthorityChanges in Net Assets

FY 2002 through FY 2006(In Thousands)

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Revenues

Toll Revenues $ 45,611 $ 44,259 $ 49,411 $ 58,652 $ 77,462

Interest and Miscellaneous Income 9,355 4,464 2,183 5,742 12,904

Total Revenues 54,966 48,723 51,594 64,394 90,366

Expenses

Operations 9,478 8,836 7,844 7,884 10,354

Maintenance 4,836 6,565 4,743 5,047 5,621

Administrative 6,070 3,164 5,070 4,416 5,394

Nonoperating 14,654 11,530 11,497 19,829 30,445

Total Expenses 35,038 30,095 29,154 37,176 51,814

Income Before Capital Contributions and Extraordinary Items 19,928 18,628 22,440 27,218 38,552

Gain on Escrow Restructuring - 4,285 - - -

Contributions for Capital Projects - - - 1,367 -

Increase in Net Assets 19,928 22,913 22,440 28,585 38,552

Net Assets, Beginning of Year 33,713 53,641 76,555 98,993 127,578

Net Assets, End of Year $ 53,641 $ 76,555 $ 98,993 $ 127,578 $ 166,131

With the exception of FY 2003, total revenues have increased over the last five years. The significant increase in toll revenue in FY 2005 and FY 2006 is primarily attributed to toll rate increases implemented in March 2004 and July 2005. Compared to revenues, expenses have grown at a much lower rate resulting in continued growth in net assets.


Revenue Bond CoverageMiami-Dade Expressway Authority

(In Thousands)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Net Revenue Debt Service Cost

Miami-Dade Expressway AuthorityRevenue Bond CoverageFY 2002 through FY 2006

(In Thousands)

Fiscal Year Gross RevenuesOperating General & Administrative

Expenses

Net Revenues Available for Debt

Service

Total Debt Service

Coverage

2002 $ 54,966 $ 20,384 $ 34,582 $ 16,462 2.10

2003 53,009 18,565 34,444 16,079 2.14

2004 67,594 17,657 49,936 18,431 2.71

2005 64,394 17,346 47,047 26,392 1.78

2006 90,366 21,369 68,997 32,194 2.14

Bonds are issued for the purpose of funding improvements to MDX’s expressway system which are included in the 5-Year Work Program and/or refund the outstanding principal of prior series bonds. Debt payments are payable solely from MDX’s toll revenues. The Trust Indenture and MDX Board require a minimum coverage of 1.20 and 1.50, respectively. As indicated on the above chart, MDX has consistently maintained coverage well above minimum requirements.


MDX is driving toward the future.

MIAMI-DADE COUNTY EXPRESSWAY AUTHORITY D/B/A MIAMI-DADE EXPRESSWAY AUTHORITY AND MDX

Basic Financial Statements June 30, 2006 and 2005

(With Independent Auditors’ Reports Thereon)

WATSON RICE LLP Certified Public Accountants

AndConsultants


Table of Contents

Page

Independent Auditors’ Report 1-2

Management’s Discussion and Analysis 3-8

Statements of Net Assets 9

Statements of Revenue, Expenses and Changes in Net Assets 10

Statements of Cash Flows 11

Notes to Financial Statements 12-37

Supplemental Schedules (Unaudited)

Schedule of Calculation of Net Revenue and Financial Ratios as Defined and Required by the Trust Indenture 38

Schedule of Toll Revenues and Expense Summary 39

Schedule of Historical Toll Rates by Vehicle Class 40

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MANAGEMENT’S DISCUSSION AND ANALYSIS FISCAL YEARS ENDED JUNE 30, 2006 AND 2005

The following narrative provides an overview of Miami-Dade County Expressway Authority’s (Authority) financial activities for the fiscal years ended June 30, 2006 and 2005.

FINANCIAL HIGHLIGHTS

The Authority’s toll revenues increased approximately $18.8 million or 32.1% in fiscal year 2006, compared to an increase of approximately $9.2 million or 18.7% in fiscal year 2005The Authority’s operating income increased approximately $12.1 million or 38.1% in fiscal year 2006, compared to an increase of approximately $4.0 million or 14.3% in fiscal year 2005 The Authority’s net assets of $166.1 million increased approximately $38.5 million or 30.2% in fiscal year 2006, and increased approximately $28.6 million or 28.9% in fiscal year 2005 The Authority’s total assets of approximately $912.7 million increased approximately $50.5 million or 5.9% and $386.6 million or 81.3% in fiscal years 2006 and 2005, respectively The Authority’s total capital assets, net of accumulated depreciation, of approximately $568.1 million increased approximately $165.8 million or 41.2% and $112.0 million or 38.6% in fiscal years 2006 and 2005, respectively

USING THIS ANNUAL REPORT

This discussion and analysis is intended to serve as an introduction to the Authority’s financial statements, notes to the financial statements, supplemental schedule and other schedules. The financial statements of the Authority report information using accounting methods similar to those used by private sector companies.

Statements of Net Assets - This statement presents information on all of the Authority’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets are useful indicators of whether the Authority’s financial position is improving or deteriorating.

Statements of Revenue, Expenses and Changes in Net Assets – This statement presents information showing how the Authority’s net assets changed during the fiscal year.

Statements of Cash Flows – This statement presents information about the Authority’s cash receipts and cash payments, or, in other words, the sources and uses of the Authority’s cash and the change in balance during the fiscal year.

Notes to the Financial Statements – The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the financial statements.

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Other – Certain supplementary information is presented to report compliance with financial ratio requirements as well as historical schedules of toll revenues and expenses, and toll rates by vehicle class.

Financial Analysis

Net Assets June 30, 2006 2005 2004

Current and other assets $ 344,641,640 459,935,680 185,366,443 Capital assets 568,060,548 402,309,783 290,269,834 Total assets 912,702,188 862,245,463 475,636,277 Current liabilities 57,773,584 48,273,849 31,967,262, Revenue bonds payable, net of current portion, bond discount and deferred cost 632,700,209 639,086,248 225,796,226 Other long-term liabilities 56,097,785 47,306,994 118,879,753 Total liabilities 746,571,578 734,667,091 376,643,241 Net assets Invested in capital assets, net of related debt 72,876,904 55,799,114 35,832,291 Restricted 41,716,727 31,951,600 15,438,545 Unrestricted 51,536,980 39,827,658 47,722,200 Total net assets $ 166,130,611 127,578,372 98,993,036

Current and Other Assets

In fiscal year 2006, current and other assets decreased approximately $115.3 million or 25.1% due to a decrease in restricted cash for construction projects expenditures.

In fiscal year 2005, current and other assets increased approximately $274.5 million or 148.1% due primarily to an increase of restricted cash from the issuance Bond Series 2005 of $241.4 million and partially offset by the current year’s construction expenditures. The increase was also due to an increase in accounts receivable of $65 million from reimbursable construction costs from the Florida Department of Transportation and Miami Dade County School Board.

Changes in Net Assets Years Ended June 30, 2006 2005 2004 Operating revenues $ 77,618,592 58,908,013 49,491,239 Operating expenses 33,931,695 27,283,406 21,824,271 Operating income 43,686,897 31,624,607 27,666,968 Non-operating revenues (expenses) Interest, dividend & investment income 12,747,227 5,485,581 2,102,519 Interest expense (16,460,563) (8,778,775) (7,331,012) Disposal of assets (1,421,322) (1,113,319) - Total non-operating revenues (expenses) (5,134,658) (4,406,513) (5,228,493) Income before capital contribution 38,552,239 27,218,094 22,438,475 Capital Contributions - 1,367,242 - Change in net assets 38,552,239 28,585,336 22,438,475 Net assets, beginning of year 127,578,372 98,993,036 76,554,561 Net assets, end of year $ 166,130,611 127,578,372 98,993,036

Toll Revenue

Toll revenues increased approximately $18.8 million in fiscal year 2006 due to the July 2005 toll rate adjustment. The toll adjustment equalized all toll rates on MDX’s expressways.

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Toll revenues increased approximately $9.2 million in fiscal year 2005 due to the March 2004 toll rate adjustment and an increase in actual traffic.

Operating Expenses

In fiscal year 2006, operating expenses increased approximately $6.6 million or 24.4% due to an increase in depreciation and amortization of approximately $2.6 million related to capital assets placed in service; an increase in toll system software maintenance of approximately $1.0 million; an increase of approximately $500,000 due to escalations in the MDX Operations and Maintenance Contract (MOMC); an increase in pass-thru charges from SunPass Operations of approximately $1 million and an increase from the Florida Department of Transportation for service patrols of approximately $200,000; an increase to roadway maintenance primarily due to a contribution to the Advanced Traveler Information System (ATIS) of approximately $300,000 and upgrades to pre-existing conditions of approximately $200,000; an increase in property insurance of approximately $200,000; and an increase in public communication initiatives of approximately $600,000. These increases were partially offset by a decrease in salaries, benefits and general expenses of approximately $100,000.

In fiscal year 2005, operating expenses increased approximately $5.5 million, or 25.0% due to an increase in depreciation and amortization of approximately $5.7 million related to capital projects placed in service during the past fiscal year; an increase in salaries, taxes and benefits expenses of approximately $400,000 due to the hiring of new personnel; an increase in toll operations expenses of approximately $350,000 due to the implementation of the Violation Processing Center and additional toll plaza personnel; an increase in contracted services of approximately $750,000 primarily due to public communication awareness program. These increases were partially offset by a decrease in roadway operations and maintenance expenses of approximately $350,000 due to less roadway contractual obligations and SunPass transponder subsidies program of approximately $1.1 million, and an increase in the capitalization of operating expenses incurred in the acquisition, design and construction of capital assets of approximately $250,000.

Non-operating Revenue

Non-operating revenue increased approximately $7.3 million or 132.4% and $3.4 million or 160.9% in fiscal years 2006 and 2005 respectively, due to higher yields on investments and availability of funds invested from the Bond Series 2005.

Non-operating Expenses

In fiscal year 2006, interest expense increased approximately $7.7 million or 87.5% due to an increase in existing Bond Series interest payments and the full year interest expense costs related to Bond Series 2004 and 2005. The increase was partially offset by the capitalization of interest of $15.2 million.

In fiscal year 2006 disposal of assets was approximately $1.4 million, due primarily to the elimination of all automatic coin machines throughout the entire System.

In fiscal year 2005, interest expense increased approximately $1.4 million or 19.7% due primarily to the issuance of Bond Series 2004 and 2005 totaling $16.6 million of interest expense. The increase was partially offset by capitalization of interest of $15.2 million.

In fiscal year 2005 disposal of assets was approximately $1.1 million, due to the completion of the toll operation transition project resulting in a write-off of the pre-existing hardware.

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Contribution for Capital Projects

During the fiscal year 2005, the Authority received $1.4 million in accordance with the Intelligent Transportation Systems (ITS) Partnership agreement between the Authority, Federal Highway Administration (FHWA) and the Florida Department of Transportation (FDOT). Funding was received for the deployment and integration of the Integrated Advanced Traffic Management System (ATMS) for the SR 836 Expressway.

Capital Assets

The Authority’s investment in capital assets was approximately $568.0 million and $402.3 million, net of accumulated depreciation, as of June 30, 2006 and 2005, respectively, an increase of approximately $165.7 million or 41.2% and $112.0 million or 38.6% in fiscal years 2006 and 2005, respectively. As of June 30, 2006 and 2005, the increases are due to capital expenditures of construction projects. Capital assets include right-of-way, roadway infrastructure, expressways, bridges, buildings, equipment and furniture. At June 30, 2006, the Authority had in construction commitments of six uncompleted construction projects with remaining balances totaling $42,234,420.

Major capital asset events during fiscal year 2006 included the following:

Construction of the SR 836 westbound to southbound Homestead Extension of Florida’s Turnpike (HEFT) connection project was completed in January 2006. Fencing work on the SR 836 NW 27th Avenue to NW 17th Avenue project and permanent thermoplastic striping for the same project was completed in September 2005. The Steel Bridge Painting (Phase I) project was completed in October 2005. The construction of the Accident Investigation Sites and Reference Markers project was completed in July 2005. The final components of the Toll Operations Transition project were completed in January 2006. Installation of the Impact Attenuators project at the SR 924 toll plaza was completed in November 2005. Construction continues on the SR 836 extension from NW 137th Avenue to NW 107th Avenue project. The Authority anticipates completion of this project in July 2007. Construction continues on the SR 836 Auxiliary Lanes NW 57th Avenue to Palmetto Expressway project. The Authority anticipates completion of this project in September 2006. Construction continues on the SR 836 extension – toll plaza section. The Authority anticipates completion of this project in April 2007. Construction continues on the SR 836 and NW 57th Avenue west bound ramp improvements. The Authority anticipates completion of this project in October 2006.

Major capital asset events during fiscal year 2005 included the following:

Construction of the SR 112 West Bound Off-Ramp to Okeechobee Road project was completed in August 2004. The Miscellaneous System-Wide Upgrades project (Phase II) was completed in September 2004. The SR 874 Toll Lane Conversion project was completed in June 2005. The SR 112 Landscaping project was completed in June 2005.

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Fencing work began on the SR 836 NW 27th Avenue to NW 17th Avenue project with an estimated completion of September 2005. Permanent thermoplastic striping for the same project was completed in January 2005. Construction continues on the SR 836 extension from NW 137th Avenue to NW 107th Avenue project. The Authority anticipates completion of this project in June 2007. Construction continued on the SR 836 westbound to southbound Homestead Extension of Florida’s Turnpike (HEFT) connection project. The Authority anticipates completion of this project in July 2005. The Steel Bridge Painting (Phase I) project is anticipated to be completed in July 2005. Construction began on the SR 836 Auxiliary Lanes NW 57th Avenue to Palmetto Expressway project.Construction continues on the toll operations transition project although the substantial completion was granted in November 2004, additional adjustments to the system continue to be made.Landscaping for SR 112 and SR 836 continues with an estimated completion date of June 2006. Miscellaneous Signs and Paving project continues with an estimated completion date of June 2006. Construction continues for SR 836 Communications and Incident Management. /Surveillance project with an anticipated completion date of November 2005.

Long-Term Debt

As of June 30, 2006, the Authority had outstanding revenue bonds payable of approximately $639.5 million (net of unamortized bond discounts and deferred losses on refunding), a decrease of approximately $6.0 million during fiscal year 2006. The decrease was due to principal payments during the fiscal year. Also, as of June 30, 2006, the Authority had outstanding government loans of approximately $60.3 million, an increase of approximately $10.3 million during the fiscal year. The increase is due to $12.7 million funding received from the State Infrastructure Bank and partially offset by principal repayments of approximately $2.4 million.

As of June 30, 2005, the Authority had outstanding revenue bonds payable of approximately $645.5 million (net of unamortized bond discounts and deferred losses on refunding), an increase of approximately $413.5 million during fiscal year 2005. The increase was due to the issuance of Bond Series 2004B and Series 2005 in the amount of $175 million and $241.4 million, respectively, and Bond Series 2004B premium of $4.2 million. The increase was partially offset primarily by principal repayments of approximately $6 million. Also, during the fiscal year the Authority repaid the outstanding balance of the commercial paper program of $80 million. As of June 30, 2005, the outstanding balance of commercial paper is $0.

On July 29, 2004 Bond Series 2004A and 2004B were issued in the amount of $68.2 million and $175 million at a fixed swap rate of 5.352% and a fixed rate based on upon maturity dates ranging from 4.0% to 5.250%, respectively. Series 2004A and 2004B were issued for the purposes of refunding the outstanding Series 1996 in its entirety and repayment of the outstanding balance of commercial paper as well as providing additional construction funding, respectively. On March 1, 2005, Bond Series 2005 was issued in the amount of $241.4 million at a fixed swap rate of 4.313% for the purpose of providing for additional construction funding.

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Debt Ratios

The Authority’s debt service ratio for all bonds outstanding was 2.14 in fiscal year 2006, 1.78 in fiscal year 2005 and 2.71 for fiscal year 2004. The Authority’s ratio of net revenue to debt service and fund payments was 1.80 in fiscal year 2006, 1.57 in fiscal year 2005 and 2.44 in fiscal year 2004.

The ratios in fiscal year 2006 were positively affected by an increase in operating and non operating revenue by approximately $18.8 million and $7.2 million, respectively. Offsetting these positive effects were the increase of operating expenses of $4.0 million, excluding depreciation and amortization, and increase in the debt service requirements of approximately $5.8 million due to the full year of interest of Series 2004 and 2005 Bonds.

Requests for Information

This financial report is designed to provide a general overview of the Authority’s finances for all those with an interest in its finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Financial Officer, Miami Dade Expressway Authority, 3790 N.W. 21st Street, Miami, FL 33142.

MIAMI-DADE COUNTY EXPRESSWAY AUTHORITYD/B/A MIAMI-DADE EXPRESSWAY AUTHORITY AND MDX

Statements of Net Assets

June 30, 2006 and 2005

Assets 2006 2005

Current assets:Cash and cash equivalents 1,027,845$ 2,015,364$ Cash and cash equivalents held by trustee 31,344,433 23,697,667 Investments 24,149,698 19,589,500 Accounts receivable, net 1,672,800 65,416,112 Accrued interest receivable 178,074 85,988 Prepaid operating and maintenance cost 655,097 521,411

Total current assets 59,027,947 111,326,042

Non-current assets:Restricted cash and cash equivalents held by trustee 124,118,149 122,013,926 Restricted investments held by trustee 92,858,827 155,347,147

Total restricted assets 216,976,976 277,361,073

Capital assets:Non-depreciable capital assets:

Land 101,349,843 56,996,386 Construction in progress 339,118,047 237,197,430

Total non-depreciable capital assets 440,467,890 294,193,816

Depreciable capital assets, net 127,592,658 108,115,967

Total capital assets, net 568,060,548 402,309,783

Other assets:Rights to operate the Miami-Dade County Expressway

System, net 58,336,887 60,253,027 Unamortized bond issue costs, net 10,299,831 10,995,538

Total other assets 68,636,718 71,248,565

Total non-current assets 853,674,242 750,919,421

Total assets 912,702,189 862,245,463

Liabilities and Net Assets

Current liabilities:Accounts and contracts payable 36,835,209 29,145,830 Accrued expenses 9,695,748 9,911,605 Current portion of revenue bonds payable 6,806,666 6,456,667 Current portion of loans due to other governments 4,435,961 2,759,747

Total current liabilities 57,773,584 48,273,849

Non-current liabilities:Revenue bonds payable, net of current portion,

bond discount/premium and deferred cost 632,700,209 639,086,248 Loans due to other governments, net of current portion 55,915,605 47,236,391 Arbitrage rebates payable 182,180 70,603

Total liabilities 746,571,578 734,667,091

Net assets:Invested in capital assets, net of related debt 72,876,904 55,799,115 Restricted for debt service 35,497,751 25,358,450 Restricted for renewal and replacement 6,218,976 6,593,148 Unrestricted 51,536,980 39,827,659

Total net assets 166,130,611$ 127,578,372$

See accompanying notes to financial statements.

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Statements of Revenue, Expenses and Changes in Net Assets

Years ended June 30, 2006 and 2005

2006 2005

Operating revenue:Tolls 77,461,639$ 58,651,830$ Other 156,953 256,183

Total operating revenue 77,618,592 58,908,013

Operating expenses:Roadway maintenance, toll operation and

maintenance expenses 15,974,887 12,931,053 General engineering, public communication, legal, and other

contracted services 2,432,908 1,300,783 Salaries, benefits, and general expenses 2,961,507 3,114,294 Depreciation and amortization 12,562,393 9,937,276

Total operating expenses 33,931,695 27,283,406

Operating income 43,686,897 31,624,607

Nonoperating revenue (expenses):Investment Income 12,747,227 5,485,581 Interest expense (16,460,563) (8,778,775) Disposal of assets (1,421,322) (1,113,319)

Total nonoperating expenses, net (5,134,658) (4,406,513)

Income before contributions for capital projects 38,552,239 27,218,094

Contributions for capital projects - 1,367,242

Change in net assets 38,552,239 28,585,336

Net assets, beginning of year 127,578,372 98,993,036

Net assets, end of year 166,130,611$ 127,578,372$


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Statements of Cash FlowsYears ended June 30, 2006 and 2005

2006 2005Cash flows from operating activities:

Cash received from customers $ 76,931,182 $ 58,651,830 Payments to suppliers (20,240,439) (13,545,423) Payments to employees (4,381,794) (3,752,768) Other operating revenues 143,099 256,183

Net cash flows from operating activities 52,452,048 41,609,822

Cash flows from noncapital and related financing activities: None None

Cash flows from capital and related financing activities:Acquisition and construction of capital assets (138,112,577) (129,340,656) Proceeds from joint participation construction of capital assets 64,273,897 — Acquisition of Land (11,900,160) (25,715,471) Proceeds from government advances 12,798,855 9,000,000 Payment of principal on government advances (2,443,427) (2,897,357) Proceeds from sale of revenue bonds, net — 485,447,459 Payment of bond issue cost(COI) (30,642) (736,339) Payment of commercial paper cost — (80,000,000) Payment of bond insurance — (4,745,827) Payment of principal on revenue bonds (6,456,667) (6,216,667) Payment for refunding bonds — (68,200,000) Interest paid on revenue bonds (31,734,294) (19,937,739)

Net cash flows used in capital and related financing activities (113,605,015) 156,657,403 Cash flows from investing activities:

Purchase of investments (236,430,123) (292,955,508) Proceeds from investments 295,432,002 138,471,000 Interest & dividends received 10,914,558 4,388,892

Net cash from (used in) investing activities 69,916,437 (150,095,616)

Net increase (decrease) in cash and cash equivalents 8,763,470 48,171,609 Cash and cash equivalents at beginning of year 147,726,957 99,555,348 Cash and cash equivalents at end of year: $ 156,490,427 $ 147,726,957

Unrestricted $ 32,372,278 $ 25,713,031 Restricted 124,118,149 122,013,926

$ 156,490,427 $ 147,726,957 Reconciliation of operating income to net cash

provided by operating activities:Operating income $ 43,686,897 $ 31,624,607 Adjustments to reconcile operating income to net cash

provided by operating activities:Depreciation and amortization 12,562,393 9,937,276

Changes in assets and liabilities:Accounts receivable (530,457) (216,060) Unearned other revenue (13,854) — Prepaid operating and maintenance cost 133,686 250,692 Accounts/contracts payable and accrued expenses (3,386,617) 13,307

Net cash provided by operating activities $ 52,452,048 $ 41,609,822


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Notes to Financial Statements Years Ended June 30, 2006 and 2005

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Note 1 - Summary of Organization and Significant Accounting Policies

(a) Organization and Purpose

The Miami-Dade County Expressway Authority d/b/a Miami-Dade Expressway Authority and MDX (the “Authority”) is an agency of the State of Florida, a body politic and corporate and a public instrumentality, and was created on December 13, 1994 pursuant to Chapter 348, Part I, Florida Statutes, as amended, for the purposes and having the powers, among others, to (1) acquire, hold, construct, improve, maintain, operate, own and lease an expressway system located in Miami-Dade County, Florida (the “County”); and (2) to fix, alter, change, establish and collect tolls, rates, fees, rentals, and other charges for the services and facilities of such system. The governing body of the Authority consists of thirteen (13) members. All members of the Authority are voting members. Seven members are appointed by the governing body of the County. At the County’s discretion, up to two of the members appointed by the governing body of the County may be elected officials residing in the County. Five members are appointed by the Governor of the State of Florida. One member is the District Secretary of the State of Florida Department of Transportation – District VI. This member is an ex officio voting member of the Authority. Except for the District Secretary of the State of Florida Department of Transportation – District VI, all members must be residents of the County. Members of the Authority are entitled to receive from the Authority their travel and other necessary expenses incurred in connection with the business of the Authority as provided by law, but they may not draw salaries or other compensation.

The State of Florida’s expressway system, located in the boundaries of the County (the expressway system), was operated by the State of Florida, Department of Transportation (“FDOT”) through December 9, 1996. Effective December 10, 1996 and pursuant to a Transfer Agreement (the “Transfer Agreement”) entered into between the Authority and the FDOT, the Authority assumed the rights and the responsibilities for operating the expressway system and obtained certain identifiable fixed assets (excluding the expressway system’s infrastructure) and cash reserves from the FDOT. In exchange, the Authority made a payment to the FDOT which was sufficient to defease certain bonded indebtedness of the State of Florida. This transaction was consummated through the Authority’s issuance of $80,000,000 in aggregate principal amount of its Toll System Revenue Bonds, Series 1996 (Taxable) (the Series 1996 Bonds). In addition, the Authority assumed a liability from the State of Florida in the amount of $11,843,000.

The Transfer Agreement gives the Authority the right, in perpetuity, to the toll revenue generated by the expressway system and grants the Authority the right to operate and maintain such expressway system.

(b) Reporting Entity

As a special purpose government engaged solely in business-type activities, the Authority’s financial statements are prepared similarly to those of an enterprise fund. Enterprise funds are used to account for operations of governmental entities that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs (expenses, including depreciation) of providing



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goods or services to the general public on a continuing basis are financed or recovered primarily through user charges.

(c) Basis of Accounting

The Authority is accounted for on the flow of economic resources measurement focus and, therefore, prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The accounting for proprietary funds is similar to those for private business enterprises. Accordingly, revenue is recorded when earned and expenses are recorded when incurred.

The assets, liabilities and net assets of the Authority are reported in a self-balancing set of accounts which include restricted and unrestricted resources, representing funds available for support of the Authority’s operations.

Equity is classified as net assets and displayed in three components:

Invested in capital assets, net of related debt – capital assets, including restricted capital assets, net of accumulated depreciation and reduced by outstanding balances of any bonds or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

Restricted net assets – net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. This includes net assets restricted for debt service and renewal and replacement.

Unrestricted net assets – all other net assets that do not meet the definition of “invested in capital assets, net of related debt” and "restricted net assets”.

It is the Authority’s policy to first use restricted net assets when an expense is incurred for purposes for which both restricted and unrestricted net assets are available.

The Authority defines operating revenue as revenues earned from the expressway system operations and charged to customers. Non-operating revenue includes interest and dividend earnings.

Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, offers the option of following all Financial Accounting Standards Board (FASB) standards issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements, or not following FASB standards issued after such date. The Authority elected the option not to follow FASB standards issued after November 30, 1989.



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(d) Restricted Assets

Restricted assets of the Authority represent bond proceeds and revenue to be set aside per the Trust Indenture which requires the following funds: Revenue Fund, Sinking Fund, General Fund (Partially Restricted), Debt Service Reserve Fund, Renewal and Replacement Fund, Cost of Issuance Fund, Construction Fund and Rebate Fund.

(e) Capital Assets

The Authority does not have title to the expressway system’s infrastructure, and, therefore, it is not reflected in these financial statements. Capital assets acquired through the Transfer Agreement as well as capital assets acquired or constructed since the transfers are recorded at historical cost. Expenses incurred to acquire additional capital assets which replace existing assets or otherwise prolong their useful lives are capitalized.

Costs related to right-of-way acquisition as well as costs related to construction of highways and bridge substructures (road sub base, grading, land clearing, embankments, and other related costs), when incurred, are considered nondepreciable costs.

Interest costs incurred during construction are capitalized on assets acquired with debt. Amounts capitalized represent interest expense incurred from the borrowing date to completion of the project, offset with interest earned on invested proceeds over the same period. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets as follows:

Furniture and fixtures 7 years Equipment and improvements 7- 15 years Asphalt 15 years Buildings, toll facilities and leasehold improvements 30 years Bridges and other roadway assets 50 years Vehicles 5 years Software 3 years

The Authority allocates certain costs incurred in the acquisition, design and construction of capital assets such as salaries, benefits, general expenses and contracted services to the related capital asset. For the fiscal year ended June 30, 2006 and 2005, the Authority capitalized $1,354,449 and $1,711,615, respectively, in contracted service expenses and $1,534,278 and $1,005,228, respectively, in salaries, benefits and general expenses.

(f) Bond Discounts, Bond Premiums and Issuance Costs

Bond discounts, premiums and issuance costs associated with the issuance of bonds are amortized either on a straight-line basis or the interest method over the life of the bonds. Bond discounts and premiums are presented as an addition to and a reduction of, respectively, the face amount of revenue bonds payable whereas issuance costs are recorded as other assets.



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(g) Compensated Absences

The Authority accounts for compensated absences by accruing a liability for employees’ compensation for future absences according to the guidelines of Governmental Accounting Standards Board (GASB) Statement No. 16, Accounting for Compensated Absences. The Authority’s vacation and sick leave accrual policies grant a specific number of days of vacation and sick leave with pay. In addition, these policies provide for paying a regular employee their accumulated unused vacation upon termination which is limited to a maximum of 480 hours. These policies also provide for accumulated sick leave hours to be paid upon separation from the Authority after 10 years or more of continuous service which is limited to a maximum of one-quarter of the amounts accumulated, up to 480 hours. These hours are payable at the employee’s current rate and are accounted for in accrued expenses.

(h) Employee Benefits

As an agency of the State of Florida, the Authority’s employees are allowed to participate in the State’s group health insurance plan under the same program and group rates available to State employees. In addition, in accordance with an interlocal agreement between the Authority and the County, the Authority’s employees are allowed to participate in the County’s group dental and life insurance program under the same providers and group rates available to County employees. Any full-time regular or part-time employees, working at least 60 hours biweekly, are eligible for group insurance coverage on the first day of the month following or coincident to 90 days of continuous active service.

(i) Risk Management

The Authority is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions and natural disasters for which the Authority carries commercial insurance. Settled claims have not exceeded the Authority’s coverage in any of the past three fiscal years.

(j) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

(k) Cash and Cash Equivalents and Investments

The carrying amount of the Authority’s cash deposits was $156,490,427 and $147,726,957 and the bank balance was $156,253,537 and $147,859,758 at June 30, 2006 and 2005, respectively. The difference between these two balances is created by timing differences due to the float on disbursements and deposits which have not yet cleared the bank and cash held at the toll plazas.



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The Authority considers all highly liquid debt instruments (including restricted assets) with an original maturity of three months or less to be cash equivalents.

The investments of the Authority are stated at fair value, which is either a quoted market price or the best available estimate. Unrealized gains or losses due to variations in fair value are recorded as income or charged to operations for the applicable year.

During the fiscal year 2005, the Authority adopted GASB 40, Deposit and Investment Risk Disclosures, which establishes and modifies disclosure requirements related to investment risks: credit risk, interest rate risk and foreign currency risk.

(l) Reclassifications

Certain prior year amounts have been reclassified to conform to the current year’s presentation.

Note 2 – Cash, Cash Equivalents and Investments

At June 30, 2006 and 2005, total unrestricted and restricted cash and cash equivalents and investments were comprised of the following:

2006 2005 Deposits $ 1,787,558 $ 2,649,375Investments, including cash equivalents 271,711,394 320,014,229

$ 273,498,952 $ 322,663,604

Deposits and investments are presented in the statement of net assets as follows:

2006 2005 Cash and cash equivalents $ 32,372,278 $ 25,713,031Restricted cash and cash equivalents 124,118,149 122,013,926Investments 24,149,698 19,589,500Restricted investments 92,858,827 155,347,147

$ 273,498,952 $ 322,663,604



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Investments at June 30, 2006 and 2005 are summarized as follows:

2006 2005 (Fair Value)

Goldman Sachs Financial Square Fund (mutual funds) $ 43,119,497 $ 44,024,255 Investment in State Board of Administration Pool 96,662,872 91,053,326JP Morgan Repurchase Agreements 10,515,000 10,515,000Federal National Mortgage Association 27,761,289 55,501,854Federal Home Loan Bank 21,473,600 16,592,500Federal Home Loan Mortgage Corporation 52,451,401 102,327,294GE Capital Corp Commercial Paper 19,727,735 -Total $ 271,711,394 $ 320,014,229

DEPOSITS

Under Chapter 280 Florida Statutes, as amended, “Florida Security for Public Deposits Act,” all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits times the depository’s collateral pledging level. The pledging level may range from 50% to 125% depending upon the depository’s financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default.

Exempt from Chapter 280 are public deposits deposited in a bank or savings association by a trust department or trust company which are fully secured through the trust business laws, public deposits held outside the United States, wire transfers and transfers of funds for periods less than seven days for the purpose of paying registrars and paying agents. Investments, including State Board of Administration accounts and repurchase agreements, are not public deposits. At June 30, 2006, all of the Authority’s bank deposits were in qualified public depositories and as such the deposits are not exposed to custodial credit risks.

INVESTMENTS

The State of Florida allows investments in Local Government Surplus Fund Trust Fund, direct investment in U.S. government, federal agency, and instrumentality obligations at a price not to exceed the market price at the time of purchase, Securities and Exchange Commission registered money markets funds with highest quality rating from a nationally recognized rating agency, and other investments by law or by resolution of the Authority.



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Investment type by maturity dates, as of June 30, 2006:

Investment Maturities ( in years)

Fair Value Less

Than 1 1-5 More

Than 5

Goldman Sachs Financial Square Fund (mutual funds) $43,119,497 $43,119,497 $ - $ - Investment in State Board of Administration Pool 96,662,872 96,662,872 - - JP Morgan Guaranteed Investment Contracts 10,515,000 - 10,515,000 - Federal National Mortgage Association (FNMA) 27,761,289 27,761,289 - - Federal Home Loan Bank (FHLB) 21,473,600 19,527,350 1,946,250 -Federal Home Loan Mortgage Corporation (FHLMC) 52,451,401 52,451,401 - -

GE Capital Corp Commercial Paper 19,727,735 19,727,735 - -Total $271,711,394 $259,250,144 $12,461,250 $ -

Interest Rate Risk – In accordance with the Authority’s investment policy, its portfolio is structured so that securities mature to meet the Authority’s scheduled cash flow requirements, thereby avoiding the need to sell securities prior to their scheduled maturity dates. The cash flow requirement limits investment maturities as a means of managing the Authority’s exposure to fair value losses arising from increasing interest rates.

Credit Risk – The Authority’s investment policy is to apply the “prudent person” rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital and avoid speculative investments. The Authority’s investment policy limits investments of U.S. agencies to ratings of “A” or better by Moody’s and S&P. Commercial Paper investments are limited to no more than 270 days rated at the time of purchase “P-1” by Moody’s and “A-1” or better by S&P. Investments in repurchase agreements are limited to those collateralized by direct obligations, Government National Mortgage Association (GNMAs), FNMAs or FHLMCs with any registered broker/dealer subject to Securities Investors’ Protection Corporation jurisdiction or any commercial bank insured by the Federal Deposit Insurance Corporation, if such broker/dealer or bank has an uninsured, unsecured and unguaranteed obligation rate “P-1” or “A3” or better by Moody’s and “A-1” or “A-“ or better by S&P. The Authority’s investment Policy allows investment in the Local Government Surplus Funds Trust Fund administered by the State Board of Administration of Florida.

As of June 30, 2006 the Authority’s investments in mutual funds was rated AAA/Aaa by Standard and Poor’s and Moody’s. The Authority’s investments in Federal National Mortgage Association, Federal Home Loan Bank and Federal Home Loan Mortgage Corporation were rated A1+ by Standard & Poor’s and F1+ by Fitch Ratings. The Authority’s investment in GE Capital Corporation Commercial Paper amounts to approximately 7% of overall investments which was rated A-1+ by Standard & Poors and P-1 by Moody’s. The investment in the State Board of Administration Pool is unrated.



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Concentration of credit risk – The Authority’s investment policy limits its investments in collateralized mortgage obligations (CMOs) up to 5%. The Authority places no limit on the amount the Authority may invest in any one issuer. More than 5% of the Authority’s investments are in FNMA, FHLB, FHLMC and GE Capital Corporation Commercial Paper securities. These investments are 10%, 8%, 19% and 7%, respectively, of the Authority’s total investments.

Custodial credit risk – investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Investments are exposed to custodial credit risk if they are uninsured, are not registered in the Authority’s name, and are held by either the counterparty to the investment purchase or are held by the counterparty’s trust department or agent but not held in the Authority’s name. None of the Authority’s investments, as of June 30, 2006, were subject to custodial credit risk.

The Authority’s investments are made in accordance with Chapter 218.415, Florida Statutes.

Note 3 - Receivables and Payables

Receivables

As of June 30, 2006 and 2005 accounts receivable totaled $1,672,800 and $65,416,112,respectively, in the following categories:

2006 2005

Toll revenue receivables $ 1,136,722 $ 606,265Other receivables 536,078 64,809,847

$ 1,672,800 $ 65,416,112

As of June 30, 2006 and 2005 Toll revenue receivables primarily comprised of revenue from SunpassTM of $1,136,722 and $606,265, respectively.

As of June 30, 2006 and 2005 other receivables primarily comprised of reimbursable construction costs from the FDOT of $535,950 and $64,300,000, respectively. Other receivables, as of June 30, 2006 and 2005, also include $0 and $352,000, respectively, from the Miami-Dade County School Board as well as miscellaneous receivables as of June 30, 2006 and 2005 of $128 and $157,847, respectively.



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Payables

As of June 30, 2006 and 2005, accounts/contracts and accrued expenses payable totaled $46,530,957 and $39,057,435, respectively, in the following categories:

2006 2005 Due to vendors $ 36,835,209 $ 29,145,830Due to employees 502,719 392,651Accrued interest 9,055,882 9,192,677Other 137,147 326,277 $ 46,530,957 $ 39,057,435

Note 4 - Capital Assets

A summary of capital assets activity and changes in accumulated depreciation for the years ended June 30, 2006 and 2005 follows:

Balance at June 30, 2005 Additions

Deletions/Transfers

Balance at June 30, 2006

Capital assets not being depreciated:

Land $ 56,996,386 $ 44,424,238 $ (70,781) $ 101,349,843

Construction in progress 237,197,430 176,222,743 (74,302,126) 339,118,047 Total capital assets, not being

depreciated 294,193,816 220,646,981 (74,372,907) 440,467,890 Capital assets being depreciated: Furniture and fixtures 2,811,284 - (37,539) 2,773,745 Equipment and improvements 24,179,980 923,366 (1,486,176) 23,617,170 Buildings, toll facilities, and

leasehold improvements 24,577,474 459,118 (128,302) 24,908,290 Asphalt 9,034,964 1,788,828 (2,685) 10,821,107 Bridges 21,131,204 19,407,039 - 40,538,243 Other roadway assets 35,888,126 7,796,074 (49,918) 43,634,282 Vehicles 229,990 138,998 - 368,988 Total capital assets being depreciated 117,853,022 30,513,423 (1,704,620) 146,661,825 Less accumulated depreciation for: Furniture and fixtures (698,765) (387,042) 21,364 (1,064,443) Equipment and improvements (3,986,034) (5,844,754) 141,246 (9,689,542) Buildings, toll facilities, and

leasehold improvements (1,929,780) (1,058,971) 2,386 (2,986,365) Asphalt (1,181,719) (661,849) - (1,843,568) Bridges (559,198) (629,217) - (1,188,415) Other roadway assets (1,292,986) (853,293) - (2,146,279) Vehicles (88,573) (61,982) - (150,555) Total accumulated depreciation (9,737,055) (9,497,108) 164,996 (19,069,167) Net depreciable capital assets 108,115,967 21,016,315 (1,539,624) 127,592,658 Net capital assets $ 402,309,783 $ 241,663,296 $ (75,912,531) $ 568,060,548



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Balance at June 30, 2004 Additions

Deletions/Transfers

Balance at June 30, 2005

Capital assets not being depreciated:

Land $ 31,280,915 $ 24,940,011 $ 775,460 $ 56,996,386

Construction in progress 190,029,969 119,357,378 (72,189,917) 237,197,430 Total capital assets, not being

depreciated 221,310,884 144,297,389 (71,414,457) 294,193,816 Capital assets being depreciated: Furniture and fixtures 1,073,941 1,753,422 (16,079) 2,811,284 Equipment and improvements 5,873,398 22,730,026 (4,423,444) 24,179,980 Buildings, toll facilities, and

leasehold improvements 23,887,466 2,778,386 (2,088,378) 24,577,474 Asphalt 6,154,713 2,741,463 138,788 9,034,964 Bridges 10,088,141 11,043,063 - 21,131,204 Other roadway assets 27,811,825 6,911,492 1,164,809 35,888,126 Vehicles 185,521 44,643 (174) 229,990 Total capital assets being depreciated 75,075,005 48,002,495 (5,224,478) 117,853,022 Less accumulated depreciation for: Furniture and fixtures (372,560) (331,800) 5,595 (698,765) Equipment and improvements (3,659,630) (3,699,856) 3,373,452 (3,986,034) Buildings, toll facilities, and

leasehold improvements (877,794) (1,160,751) 108,765 (1,929,780) Asphalt (559,043) (617,030) (5,646) (1,181,719) Bridges (148,517) (410,681) - (559,198) Other roadway assets (452,627) (738,956) (101,403) (1,292,986) Vehicles (45,884) (42,689) - (88,573) Total accumulated depreciation (6,116,055) (7,001,763) 3,380,763 (9,737,055) Net depreciable capital assets 68,958,950 41,000,732 (1,843,715) 108,115,967 Net capital assets $ 290,269,834 $ 185,298,121 $ (73,258,172) $ 402,309,783

Depreciation expense was $9,497,108 in fiscal year 2006 and $7,001,763 in fiscal year 2005.

The capitalized interest amounted to $15,248,512 in 2006 and $15,189,698 in 2005.

As of June 30, 2006 and 2005, unspent debt proceeds restricted for capital projects of $168,191,083 and $303,260,220, respectively, are included in net assets invested in capital assets, net of related debt in the accompanying financial statements.

Note 5 - Rights to Operate the Miami-Dade County Expressway System

As discussed in Note 1, the Authority obtained the rights to operate the State of Florida’s expressway system located within the boundaries of the County.

The difference between the net book value of tangible assets received less the net book value of liabilities assumed and consideration paid, amounting to approximately $76,646,000, is reflected in these financial statements, net of amortization, as an intangible asset (Rights to Operate the Miami-Dade County Expressway System) and is being amortized on the straight-line method over a period of 40 years.



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The cost to obtain such rights and its accumulated amortization are as follows:

2006 2005 Original cost $ 76,645,605 $ 76,645,605 Less accumulated amortization (18,308,718) (16,392,578)

$ 58,336,887 $ 60,253,027

Note 6 - Unamortized Bond Issue Costs

Unamortized bond issue costs and its accumulated amortization are as follows:

2006 2005 Original cost $ 12,063,333 $ 12,030,521Less accumulated amortization (1,763,502) (1,034,983)

$ 10,299,831 $ 10,995,538

Remainder of page intentionally left blank.



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Note 7 - Long-term liabilities A summary of changes in long-term liabilities is as follows:

Balance at Balance at Due June 30, June 30, Within

2005 Additions Reductions 2006 One Year

Revenue bonds Series 1999 $ 6,666,665 $ - $ (666,667) $ 5,999,998 $ 666,666 Series 2000 37,265,000 - (2,940,000) 34,325,000 3,085,000 Series 2001A 89,345,000 - - 89,345,000 - Series 2002 34,205,000 - (250,000) 33,955,000 255,000 Series 2004A 68,200,000 - (2,600,000) 65,600,000 2,800,000 Series 2004B 175,000,000 - - 175,000,000 - Series 2005A 54,800,000 - - 54,800,000 - Series 2005B 54,800,000 - - 54,800,000 - Series 2005C 54,800,000 - - 54,800,000 - Series 2005D 38,500,000 - - 38,500,000 - Series 2005E 38,500,000 - - 38,500,000 -

652,081,665 - (6,456,667) 645,624,998 6,806,666 Add bond premium, net 4,525,215 - (288,865) 4,236,350 - Less bond discount, net (2,393,975) - 133,813 (2,260,162) - Less refunding losses, net (8,669,991) - 575,680 (8,094,311) -

- Total revenue bonds, net 645,542,914 - (6,036,039) 639,506,875 6,806,666

Loans due to other governments

Toll facilities revolving trust fund #1 952,918 - (168,084) 784,834 168,084 Toll facilities revolving trust fund #2 1,500,000 - - 1,500,000 - State of Florida, Dept. of Transportation 2,543,220 - (1,275,343) 1,267,877 1,267,877State of Infrastructure Bank Loan #1 12,000,000 - (1,000,000) 11,000,000 3,000,000 State of Infrastructure Bank Loan #2 13,000,000 5,000,000 - 18,000,000 - State of Infrastructure Bank Loan #3 20,000,000 - - 20,000,000 - State of Infrastructure Bank Loan #4 - 7,798,855 - 7,798,855 -

Total loans due to other governments 49,996,138 12,798,855 (2,443,427) 60,351,566 4,435,961

Arbitrage rebates payable 70,603 111,577 - 182,180 - Total long-term liabilities $ 695,609,655 $ 12,910,432 $ (8,479,466) $ 700,040,621 $11,242,627



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Balance at Balance at Due June 30, June 30, Within

2004 Additions Reductions 2005 One Year

Revenue bonds Series 1996 $ 70,700,000 $ - $ (70,700,000) $ - $ - Series 1999 7,333,332 - (666,667) 6,666,665 666,667 Series 2000 40,070,000 - (2,805,000) 37,265,000 2,940,000 Series 2001A 89,345,000 - - 89,345,000 - Series 2002 34,450,000 - (245,000) 34,205,000 250,000 Series 2004A - 68,200,000 - 68,200,000 2,600,000 Series 2004B - 175,000,000 - 175,000,000 - Series 2005A - 54,800,000 - 54,800,000 - Series 2005B - 54,800,000 - 54,800,000 - Series 2005C - 54,800,000 - 54,800,000 - Series 2005D - 38,500,000 - 38,500,000 - Series 2005E - 38,500,000 - 38,500,000 -

241,898,332 484,600,000 (74,416,667) 652,081,665 6,456,667 Add bond premium, net 588,786 4,216,534 (280,105) 4,525,215 - Less bond discount, net (2,065,011) (461,467) 132,503 (2,393,975) - Less refunding losses, net (8,409,214) (833,748) 572,971 (8,669,991) -

- Total revenue bonds, net 232,012,893 487,521,319 (73,991,298) 645,542,914 6,456,667

Loans due to other governments

Toll facilities revolving trust fund #1 1,009,092 - (56,174) 952,918 168,084 Toll facilities revolving trust fund #2 - 1,500,000 - 1,500,000 - State of Florida, Dept. of Transportation 5,792,740 - (3,249,520) 2,543,220 1,591,663 State of Infrastructure Bank Loan #1 12,000,000 - - 12,000,000 1,000,000 State of Infrastructure Bank Loan #2 13,000,000 - - 13,000,000 - State of Infrastructure Bank Loan #3 12,500,000 7,500,000 - 20,000,000 -

Total loans due to other governments 44,301,832 9,000,000 (3,305,694) 49,996,138 2,759,747

Commercial paper 80,000,000 - (80,000,000) - - Arbitrage rebates payable 475,278 70,603 (475,278) 70,603 - Total long-term liabilities $ 356,790,003 $ 496,591,922 $ (157,772,270) $ 695,609,655 $ 9,216,414



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A. Revenue Bonds Payable

(1) $80,000,000 Toll System Revenue Bonds, Series 1996

On December 10, 1996, the Authority issued $80,000,000 Series 1996 Bonds (the Series 1996 Bonds). The bonds were issued for the purpose of providing funds to pay all or a portion of the cost of (a) the acquisition by the Authority of the operational and financial control of the Miami-Dade County Expressway System (the System) per the Transfer Agreement between the Authority and the FDOT, dated as of December 10, 1996, in perpetuity by, among other things, defeasing all of the outstanding 1993 Series State Bonds issued by the State of Florida for the Authority expressway system; (b) funding a portion of the Debt Service Reserve Fund Requirement in respect of the Series 1996 Bonds; and (c) paying certain costs associated with the issuance of the Series 1996 Bonds. The Series 1996 Bonds were due in annual principal installments, which began on July 1, 1999 through July 1, 2019, of $1,000,000 to $10,500,000 bearing interest at the weekly rate as determined by the remarketing agent. Interest could be converted from one variable rate to another at the option of the Authority and upon delivery of an opinion of bond counsel to the trustee and the Authority or may be converted to fixed rate upon the request of the Authority. The bonds were secured by the revenue generated by the Authority’s existing expressway system subject to the terms and limitations set forth in the Indenture, excluding amounts deposited in the Rebate Fund, if any.

(2) $10,000,000 Toll System Revenue Bond, Series 1999

On November 1, 1999, the Authority issued $10,000,000 Toll System Revenue Bond, Series 1999 (Non-Taxable) (the Series 1999 Bond). The Series 1999 Bond was issued for the purpose of providing funds to (a) pay a portion of the cost of certain improvements to the system included within the current five-year work program of the Authority in effect from time to time; (b) fund a portion of the Debt Service Fund Requirement in respect of the Series 1999 Bond; and (c) pay certain costs associated with the issuance of the Series 1999 Bond. The bond matures on January 1, 2015 with annual principal installments of $666,667 beginning January 1, 2001 through January 1, 2015, with semiannual interest payments at 4.94% per annum, due each January 1 and July 1. The Series 1999 Bond is secured by the revenue generated by the Authority’s existing expressway system subject to the terms and limitations set forth in the Indenture, excluding amounts deposited in the Rebate Fund, if any.

(3) $150,000,000 Toll System Revenue Bonds, Series 2000

On January 1, 2000, the Authority issued $150,000,000 Toll System Revenue Bonds, Series 2000 (Non-Taxable) (the Series 2000 Bonds). The bonds were issued for the purpose of providing funds to (a) pay a portion of the cost of certain improvements to the system included in the five-year work program of the Authority in effect from time to time; (b) fund a deposit to the Debt Service Reserve Fund in an amount equal to the increase in the Debt Service Reserve Fund Requirement resulting from the issuance of the Series 2000 Bonds; and (c) pay costs and expenses relating to the issuance of the Series 2000 Bonds. The Series 2000 Bonds, net of unamortized net premium totaling $2,809,283, consist of (a) $40,070,000 serial bonds maturing between July 1, 2004 and



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July 1, 2014, bearing interest between 4.8% and 6%; (b) $30,485,000 fixed term bonds at 6%; and (c) $79,445,000 fixed term bonds at 6.375%, with semiannual interest payments each January 1, and July 1. The Series 2000 Bonds are secured by the revenue generated by the Authority’s existing expressway system subject to the terms and limitations set forth in the Indenture on a parity with the Series 1999 Bonds, excluding amounts deposited in the Rebate Fund, if any.

(4) $89,345,000 Toll System Refunding Revenue Bonds, Series 2001A

On July 11, 2001, the Authority issued $89,345,000 Toll System Refunding Revenue Bonds, Series 2001A (Non-Taxable) (the Series 2001A Bonds). The Series 2001A Bonds were issued and placed in an irrevocable trust for the purpose of providing funds to (a) refund $79,445,000 principal amount of the Series 2000 Bonds; and (2) pay costs and expenses relating to the issuance of the Series 2001A Bonds and the refunding of the Refunded Series 2000 Bonds. The Series 2001A Bonds consist of (1) $13,000,000 serial bonds maturing between July 1, 2012 and July 1, 2021, bearing interest between 4.5% and 5%; (b) $34,370,000 fixed term bonds at 5.125%; and (c) $41,975,000 fixed term bonds at 5.125%. The Series 2001A Bonds are secured under the Indenture on a parity with the Series 1999 Bond, the Series 2000 Bonds outstanding after issuance of the Series 2001A Bonds and any other Bonds hereafter issued under the Indenture.

The transaction resulted in a $6,130,809 deferred charge to be amortized over the life of the new debt. This refunding has resulted in an economic gain of $3,781,501. The difference between the cash flows received to service the old debt and the cash flows required to service the new debt is $4,788,116.

(5) $34,650,000 Toll System Refunding Revenue Bonds, Series 2002

On August 22, 2002, the Authority issued $34,650,000 Toll System Refunding Revenue Bonds, Series 2002 (Non-Taxable) (the Series 2002 Bonds). The Series 2002 Bonds were issued for the purpose of providing funds to (a) refund $30,485,000 principal amount of the Refunded Series 2000 Bonds; and (2) pay costs and expenses relating to the issuance of the Series 2002 Bonds and the refunding of the Refunded Series 2000 Bonds. The Series 2002 Bonds consist of $34,650,000 Serial Bonds maturing between July 1, 2003 and July 1, 2020, bearing interest between 1.35% and 4.625%. The Series 2002 Bonds are secured under the Indenture on a parity with the Series 1999 Bond, the Series 2000 Bonds and the Series 2001A Bonds outstanding after issuance of the Series 2002 Bonds and any other Bonds hereafter issued under the Indenture.

The transaction resulted in a $3,502,380 deferred charge to be amortized over the life of the new debt. This refunding has resulted in an economic gain of $1,100,672. The difference between the cash flows received to service the old debt and the cash flows required to service the new debt is $2,243,369.

(6) $68,200,000 Toll System Refunding Revenue Bonds, Series 2004A

On July 29, 2004, the Authority issued Toll System Refunding Revenue Bonds, Series 2004A (Non-Taxable) (the Series 2004A Bonds). The Series 2004A Bonds were issued for the purpose of providing funds to refund the total outstanding principal amount of the (Taxable) Series 1996 Bonds. The Series 2004A Bonds consist of $68,200,000



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Serial Bonds maturing between July 1, 2005 and July 1, 2019. The Series 2004A Bonds were issued in the form of Dutch Auction Rate Bonds bearing interest at a Dutch Auction Rate but may be converted at the option of the Authority, subject to certain restrictions, to Series 2004A Bonds which bear interest at different rates including a Daily Rate, Weekly Rate, Flexible Rate or Fixed Rate. The Series 2004A Bonds will be dated their date of delivery and after the initial Dutch Auction Rate Period, will be in a Standard Auction Period of 35 days, subject to conversion in whole only to another Auction Period or in whole or in part to another Interest Mode as the Authority shall determine. The Series 2004A Bonds are secured under the Indenture on a parity with the Series 1999 Bond, the Series 2000 Bonds, the Series 2001A Bonds and the Series 2002 Bonds outstanding after issuance of the Series 2004A Bonds and any other Bonds hereafter issued under the Indenture.

The transaction resulted in an $833,000 deferred charge to be amortized over the life of the new debt. This refunding has resulted in an economic gain of $5,184,414.

(7) $175,000,000 Toll System Refunding Revenue Bonds, Series 2004B

On July 29, 2004, the Authority issued $175,000,000 Toll System Revenue Bonds, Series 2004B (Non-Taxable) (the Series 2004B Bonds). The Series 2004B Bonds were issued for the purpose of providing funds to (a) pay a portion of the cost of certain improvements to the System included in the five-year work program of the Authority in effect from time to time; (b) pay at maturity the Authority’s outstanding Toll System Commercial Paper Notes; and (c) pay costs and expenses relating to the issuance of the Series 2004B Bonds. The Series 2004B Bonds consist of (a) $103,445,000 Serial Bonds maturing between July 1, 2014 and July 1, 2027, bearing interest between 3.85% and 5.25%; and (b) $71,555,000 fixed term bonds at 5%, with semi-annual interest payments each January 1 and July 1. The Series 2004B Bonds are secured under the Indenture on a parity with the Series 1999 Bond, the Series 2000 Bonds, the Series 2001A Bonds, the Series 2002 Bonds and the Series 2004A Bonds outstanding after issuance of the Series 2004B Bonds and any other Bonds hereafter issued under the Indenture.

(8) $241,400,000 Toll System Refunding Revenue Bonds, Series 2005

On March 1, 2005, the Authority issued Toll System Revenue Bonds, Series 2005 (Non-Taxable) (the Series 2005 Bonds) in five sub-series for a total of $241,400,000, including Series 2005A-C in the amount of $54,800,000 each series and Series 2005D-E in the amount of $38,500,000 each series. Each Series of the 2005 Bonds was initially issued in the form of Dutch Auction Rate Bonds bearing interest at a Dutch Auction Rate but each Series individually may be converted at the option of the Authority, subject to certain restrictions, to Series 2005 Bonds which bear interest at different rates, including a Daily Rate, Weekly Rate, Flexible Rate or Fixed Rate. Each Series of 2005 Bonds will be dated their date of delivery and after the initial Auction Period for such Series, will be in an Auction Period of seven days, subject to conversion in whole only to another Auction Period or to another Interest Mode as the Authority shall determine. The Series 2005 Bonds were issued for the purpose of providing funds to pay a portion of the cost of certain improvements to the System included in the five-year work program of the Authority in effect from time to time. The Series 2005 Bonds are secured under the Indenture on a parity with the Series 1999 Bond, the Series 2000 Bonds, the Series



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2001A Bonds, the Series 2002 Bonds, the Series 2004A Bonds and the Series 2004B Bonds outstanding after issuance of the Series 2005 Bonds and any other Bonds hereafter issued under the Indenture.

The annual revenue bonds’ debt service requirements as of June 30, 2006 are summarized as follows:

Revenue Bonds Principal

Revenue Bonds Interest

Year ending June 302007 $ 6,806,666 $ 30,852,234 2008 7,161,668 30,690,193 2009 7,536,667 30,083,418 2010 7,911,667 29,670,547 2011 8,311,667 29,228,423

2012-16 61,466,663 137,413,062 2017-21 107,095,000 114,317,239 2022-26 116,565,000 86,644,903 2027-31 182,580,000 50,112,338 2032-35 140,190,000 8,952,789

645,624,998 547,965,146 Plus premium, net 4,236,350 - Less bond discount, net 2,260,162 - Less refunding loss, net 8,094,311 -

$ 639,506,875 $ 547,965,146

Refunded and Defeased Debt

In July 2001, the Authority defeased $79,445,000 of its Series 2000 Bonds scheduled to mature on July 1, 2029 by placing the proceeds of the Series 2001A Bonds in an irrevocable trust. Such proceeds are invested in open market securities and will provide for all future debt service payments on the defeased bonds.

In August 2002, the Authority defeased $30,485,000 of its Series 2000 Bonds scheduled to mature on July 1, 2020 by placing the proceeds of the Series 2002 Bonds (plus other monies) in an irrevocable trust. Such proceeds are invested in State and Local Government securities (“SLGS”) and will provide for all future debt service payments on the defeased bonds. Accordingly, the trust account’s assets and the liability for the defeased bonds are not included in the accompanying financial statements.

At June 30, 2006, all defeased bonds remain outstanding.

On July 29, 2004, the Authority issued Bond Series 2004A for the purpose of refunding the total outstanding principal amount of the (Taxable) Series 1996 Bonds. The amount refunded was $68,200,000. As of June 30, 2006, the Series 1996 Bonds were repaid in its entirety.



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Interest Rate Swap Agreements

Series 1996 Bonds

Objective of the Interest Rate Swap:

As a means to lower borrowing costs, when compared to interest rate costs related to fixed rate bonds at the time of issuance, the Authority entered into an interest rate swap in connection with its variable rate (Taxable) Series 1996 Bonds. On February 1, 1999, the Authority entered into a swap agreement with Salomon Brothers Holding Company, Inc. (aka “Citigroup”) scheduled to terminate on July 1, 2004. On April 12, 2002, the Authority executed an amendment to the swap agreement whereby the swap termination date was extended to July 1, 2019. On June 30, 2004, the Authority executed an additional amendment to the swap agreement effective July 29, 2004.

The intent of the swap was to effectively change the taxable variable interest rate on the Series 1996 Bonds into a synthetic fixed rate of 5.325% on the initial swap until July 1, 2004 and, as amended on April 12, 2002, into a synthetic fixed rate of 6.265% beginning May 1, 2002 and terminating on July 1, 2019. The amendment on June 30, 2004 effectively reduced the synthetic fixed rate to 5.352% by replacing the payment received from Citigroup from a taxable-based rate to a tax-exempt-based rate in anticipation of the tax-exempt issuance of the Series 2004A Toll System Refunding Revenue Bonds which refunded the (Taxable) Series 1996 Bonds in their entirety on July 29, 2004.

Terms:

Based on the initial swap agreement, the Authority owed interest, calculated at a fixed rate of 5.325%, to the counterparty of the swap. In return, the counterparty owed the Authority interest based on a variable rate that matched the rate required by the Series 1996 Bonds. The rate required by the bonds is derived from the monthly reoffering of the Series 1996 Bonds. Only the net difference in interest payments was actually exchanged with the counterparty. The Series 1996 Bond principal was not exchanged, it was only the basis on which the interest payments were calculated. The Authority continued to pay interest to the bondholders at the variable rate provided by the Series 1996 Bonds. However, during the term of the swap agreement, the Authority effectively paid a fixed rate on the Series 1996 Bonds.

Based on the first amendment to the swap agreement, on April 12, 2002, the Authority owed interest at a fixed rate of 6.265% to the counterparty of the swap beginning May 1, 2002. In return, until July 1, 2004, the counterparty owed the Authority interest based on a variable rate that matched the rate required by the Series 1996 Bonds. The rate required by the Series 1996 Bonds was derived from the monthly reoffering of the Series 1996 Bonds. Effective July 1, 2004, the counterparty paid the Authority interest based on the variable London Interbank Offered Rate (“LIBOR”). The Series 1996 Bond principal was not exchanged; it was only the basis on which the interest payments were calculated. The Authority continued to pay interest to the bondholders at the variable rate provided by the



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bonds. However, during the term of the swap agreement, the Authority effectively paid a fixed rate on the debt.

Based on the second amendment to the swap agreement, on June 30, 2004, the Authority owed interest at a fixed rate of 5.352% to the counterparty of the swap beginning July 29, 2004. In return, the counterparty owes the Authority interest based on the variable Bond Market Association Municipal Swap Index (“BMA”) rate that approximates the tax-exempt variable rate anticipated on the Series 2004A Bonds which were issued on July 29, 2004 to refund the (Taxable) Series 1996 Bonds in their entirety. The rate required by the Series 2004A Bonds is derived from the periodic auction of the Series 2004A Bonds. The Series 2004A Bond principal is not exchanged, it is only the basis on which the interest payments are calculated. The Authority continues to pay interest to the bondholders at the variable rate provided by the Series 2004A Bonds. However, during the term of the swap agreement, the Authority effectively pays a fixed rate on the debt. The debt service requirements to maturity for these bonds are based on that fixed rate.

The swap’s notional amount matches the outstanding amount of the bonds. As the principal amount of the bonds declines, the notional amount of the swaps also declines by the same amount.

Interest Rate Swap with Rice Financial Products Related to the Series 1996 Bonds

Objective of the Interest Rate Swap:

As an additional means to lower borrowing costs, on August 9, 2002, the Authority entered into a swap agreement with Rice Financial Products Company in connection with its variable rate (Taxable) Series 1996 Bonds until July 1, 2019.

Terms:

Based on the swap agreement, the Authority paid interest at a variable rate based on the BMA Municipal Swap Index divided by .604. In return, the Authority received interest at a variable rate based on the LIBOR (reset January 1 and July 1) plus a ”constant” of 47 basis points (0.47%) from the counterparty. The Authority had the option to terminate the swap annually, at no cost to the Authority, on any bond payment date commencing July 1, 2004 and ending July 1, 2019. On August 1, 2003, the Authority entered into an amendment to the swap agreement effective July 1, 2004 until July 1, 2019. Under this amendment, the Authority received a payment of $150,687; the Authority’s payments to the counterparty were capped at zero; the “constant” paid by the counterparty is reduced to 20 basis points (0.20%); and the counterparty, as well as the Authority, has the option to terminate the swap annually, at no cost to either party, on any bond payment date commencing July 1, 2004 and ending July 1, 2019.

The swap’s notional amount matched the outstanding amount of the Series 1996 Bonds. As the principal amount of the Series 1996 Bonds declines, the notional amount of the swap will also decline by the same amount.



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The Series 1996 Bonds was refunded and legally defeased on July 29, 2004. Accordingly, as of June 30, 2006, the Authority was not exposed to credit and basis risk in connection with the Series 1996 Bonds swap agreements.

Series 2004A Bonds

As a means to lower borrowing costs, the Authority entered into an interest rate swap agreement in connection with the Series 2004A Bonds. Under the swap agreements, the Authority will owe interest at a fixed rate of 5.352% to the counterparty of the swap; in return, the counterparty will owe the Authority interest based on the variable BMA Municipal Swap Index rate that approximates the tax-exempt variable rate. The bond principal will not be exchanged; it is only the basis on which the interest payments were calculated. The Authority will continue to pay interest to the bondholders at the variable rate provided by the bonds. However, during the term of the swap agreement, the Authority will effectively pay a fixed rate on the debt. The swap’s total notional amount equals the outstanding principal amounts of the Series 2004A Bonds. As the principal amount of the bonds declines, the total notional amount of the swap will also decline by the same amount.

Fair Value:

Because interest rates have declined since execution of the swap, the swap had a negative fair market value of $4,967,483 as of June 30, 2006. Swaps are not normally valued through exchange-type markets with easily accessible quotation systems and procedures. The fair market value was calculated using information obtained from generally recognized sources with respect to quotations, reporting of specific transactions and market conditions, and based on accepted industry standards and methodologies.

Credit Risk:

As of June 30 2006, the Authority was not exposed to credit risk because the swap had a negative fair value. All swap payments and termination amounts are insured by Financial Guaranty Insurance Corporation (FGIC).

Basis Risk:

The swap exposes the Authority to basis risk should the variable tax exempt rate differ from the variable BMA rate received from the swap. The maximum exposure terminating the swap is its fair market value. All swap payments and termination amounts are insured by Financial Guaranty Insurance Corporation (FGIC) which substantially mitigates the Authority’s basis risk.



32

Debt service requirements of the variable rate debt and net swap payments, assuming interest rates as of June 30, 2006 remain the same for their term, are as follows. As rates vary, variable rate debt interest payments will vary.

Variable-Rate Bonds Interest Rate Fiscal Year Ending June 30, Principal Interest Swaps, net Total

2007 $ 2,800,000 $ 3,520,568 $ 1,054,713 $ 7,375,281 2008 3,000,000 3,357,783 1,006,497 7,364,280 2009 3,200,000 3,167,889 943,676 7,311,565 2010 3,400,000 2,982,392 894,679 7,277,071 2011 3,600,000 2,780,576 834,728 7,215,304 2012-2016 22,000,000 10,351,537 3,113,964 35,465,500 2017-2020 27,600,000 2,761,755 861,535 31,223,290

Total $ 65,600,000 $ 28,922,500 $ 8,709,792 $ 103,232,291

Series 2005 Bonds

As a means to lower borrowing costs, the Authority entered into interest rate swap agreements in connection with the Series 2005 Bonds. Under the swap agreements, the Authority will owe interest at a fixed rate of 4.313% to the counterparties of the swaps. In return, the counterparties will owe the Authority interest based on the variable BMA Municipal Swap Index rate that approximates the tax-exempt variable rate. The bond principal will not be exchanged; it is only the basis on which the interest payments were calculated. The Authority will continue to pay interest to the bondholders at the variable rate provided by the bonds. However, during the term of the swap agreements, the Authority will effectively pay a fixed rate on the debt. The swaps’ total notional amount matches the total outstanding amount of the Series 2005 Bonds. As the principal amount of the bonds declines, the total notional amount of the swaps will also decline by the same amount.

Fair Value:

Because interest rates have increased since execution of the swaps, the swaps had a positive fair market value of $3,105,973 as of June 30, 2006. Swaps are not normally valued through exchange-type markets with easily accessible quotation systems and procedures. The fair market value was calculated using information obtained from generally recognized sources with respect to quotations, reporting of specific transaction and market conditions, and based on accepted industry standards and methodologies.



33

Credit Risk:

As of June 30, 2006, the Authority was not exposed to credit risk because the swaps had a positive fair value. All swap payments and termination amounts are insured by American Municipal Bond Assurance Corporation (“AMBAC”).

Basis Risk:

The swaps expose the Authority to basis risk should the variable tax-exempt rate differ from the variable BMA rate received from the swap. The maximum exposure terminating the swap is its fair market value. All swap payments and termination amounts are insured by AMBAC which substantially mitigates the Authority’s risk.

Debt service requirements of the variable rate debt and net swap payments, assuming interest rates as of June 30, 2006 remain the same for their term, are as follows. As rates vary, variable rate debt interest payments will vary. These amounts are included in the annual debt service requirements schedule above.

Variable-Rate Bonds Interest Rate Fiscal Year Ending June 30, Principal Interest Swaps, net Total

2007 $ - $ 10,527,266 $ 1,577,139 $ 12,104,405 2008 - 10,729,714 1,552,935 12,282,649 2009 - 10,527,266 1,577,139 12,104,405 2010 - 10,527,266 1,577,139 12,104,405 2011 - 10,527,266 1,577,139 12,104,405 2012-2016 - 52,839,857 7,319,597 60,159,454 2017-2021 18,000,000 50,678,039 7,549,946 76,227,985 2022-2026 33,650,000 43,928,678 6,554,885 84,133,563 2027-2031 87,950,000 31,600,119 4,749,876 124,299,995 2032-2035 101,800,000 6,971,039 1,093,002 109,864,041

Total $ 241,400,000 $238,856,510 $35,128,797 $ 515,385,307

B. Commercial Paper Notes

On March 23, 2004, the Board authorized the issuance of up to $105,000,000 in Toll System Commercial Paper Notes (the “Notes”) with maturities not to exceed 270 days from the date of issuance. The proceeds of the Notes are to provide short-term funding of the Authority’s capital improvement program. The Notes and accrued interest are payable solely from future bond issuances. The Notes are classified as long-term because the Authority intends to pay off the Notes with the proceeds of long-term revenue bonds. On March 25, 2004, the Authority issued $40,000,000 in Notes at an interest rate of 0.95%. An additional $40,000,000 in Notes was issued on June 22, 2004 at an interest rate of 1.11%. At June 30, 2004, the Authority had outstanding $80,000,000 in Notes plus accrued interest of $110,415. The $80,000,000 in outstanding Notes, plus accrued interest, was repaid on August 2, 2004. As of June 30, 2006, the Authority had no outstanding commercial paper notes.



34

C. Loans Due to Other Governments

(1) Toll Facilities Revolving Trust Fund Loan

On May 26, 1998, MDX entered into an unsecured, non-interest bearing Toll Facilities Revolving Trust Fund loan payable under an agreement authorizing the Authority to borrow up to $1,000,000 to conduct preliminary engineering studies, traffic and revenue studies, environmental impact studies, financial advisory services, engineering design, right-of-way map preparation, project-related professional services, and advanced right-of-way requisition activities. Principal balance outstanding is due from future bond proceeds, if elected by the Authority, or on the basis of repayment schedules. Repayment of principal and investment interest earnings shall begin no later than 7 years after the date of the advance, provided repayment is completed no later than 12 years after the date of the advance.

On December 31, 2003, MDX entered into an unsecured, non-interest bearing Toll Facilities Revolving Trust Fund loan payable under an agreement authorizing the Authority to borrow $1,500,000 under substantially the same terms as the above Toll Facilities Revolving Trust Fund loan.

(2) State of Florida, Department of Transportation Loan

On December 10, 1996, the FDOT transferred operational and financial control of the roadways and certain physical assets detailed in the MDX/FDOT Transfer Agreement to MDX. The system includes State Roads 112, 836, 874, 878 and 924, and certain other physical assets. Under the provisions of the Transfer Agreement, MDX agreed to pay to FDOT certain financial obligations in connection with the transfer of operational and financial control of the system in the amount of approximately $11.8 million. As of June 30, 2006, MDX owes FDOT approximately $1.26 million, which includes the outstanding balance of the net liabilities, costs related to the acquisition, installation and initial deployment of the SunpassTM facilities and system operating costs related to the SunpassTM facilities paid by FDOT on behalf of MDX through July 31, 2002. MDX has recorded an unsecured, non-interest bearing loan payable to the State of Florida, Department of Transportation, payable in annual installments of $2,000,000 until such amounts are paid in full.

(3) State Infrastructure Bank Loans

On April 30, 2002, MDX entered into an unsecured, non-interest bearing State Infrastructure Bank (SIB) loan agreement with FDOT in the amount of $12,000,000 (SIB Loan No. 1). Under the loan agreement, three installments will be made: $700,000 no earlier than April 2002, $900,000 no earlier than April 2003 and $10,400,000 no earlier than April 2004. SIB Loan No. 1 requires annual principal payments beginning October 1, 2005 and ending October 1, 2008 of $1,000,000, $3,000,000, $6,000,000 and $2,000,000, respectively. As of June 30, 2006, MDX has an outstanding balance totaling $11,000,000.

On February 14, 2003, MDX entered into an unsecured, non-interest bearing State Infrastructure Bank loan agreement with FDOT in the amount of $18,000,000 (SIB Loan No. 2). Under the loan agreement, three installments will be made: $9,000,000 no earlier



35

than April 2003, $4,000,000 no earlier than April 2004 and $5,000,000 no earlier than April 2006. SIB Loan No. 2 requires, per an amendment to the Loan agreement requested by the Department, annual principal payments beginning October 1, 2007 and ending October 1, 2009 of $5,500,000, $6,500,000 and $6,000,000, respectively. As of June 30, 2006, MDX has an outstanding balance totaling $18,000,000.

On August 4, 2003, the Authority entered into an unsecured State Infrastructure Bank loan agreement with the FDOT in the amount of $20,000,000 (SIB Loan No. 3). The loan will be made in two installments of $12,500,000 no earlier than April 2004 and $7,500,000 no earlier than April 2005. SIB Loan No. 3 requires, per an amendment to the Loan agreement requested by the Department, annual principal payments beginning October 1, 2010 and ending October 1, 2012 of $7,000,000, $9,000,000 and $4,000,000, respectively. As of June 30, 2006, MDX has an outstanding balance totaling $20,000,000.

On November 2, 2004, the Authority entered into an unsecured State Infrastructure Bank loan agreement with the FDOT in the amount of $11,613,000 at an interest rate of 2.5% (SIB Loan No. 4). The loan will be made in installments based on the reimbursable construction expenditures made by the Authority on the project specific to the loan agreement. SIB Loan No. 4 requires annual principal payments beginning October 1, 2013. As of June 30, 2006, MDX has received installments totaling $7,798,855.

The annual debt service requirements for outstanding loans due to other governments as of June 30, 2006 are summarized as follows:

Principal Interest

2007 $ 4,434,389 $ 174,039 2008 11,666,511 291,814 2009 8,666,511 291,814 2010 6,166,511 291,814 2011 7,118,789 291,639

2012-2018 22,298,855 1,456,127 $ 60,351,566 $ 2,797,247

D. Arbitrage Rebates Payable

The Authority has reported in the accompanying financial statements obligations to rebate arbitrage interest earnings on certain toll revenue bonds. The proceeds of the bonds were used to finance a portion of the cost of certain improvements to the Miami-Dade County Expressway System included within the current five-year work program.

The rebate to the federal government at June 30, 2006, required to be paid within five years from the date of issuance and each five years thereafter, is estimated to be $182,180. The ultimate amount of the Authority’s liability will be determined based on actual interest earned.



36

Note 8 - Defined-Benefit Pension Plan

The Authority participates in the Florida Retirement System (the “Retirement System”), a cost-sharing multiple-employer, public employee retirement plan, which covers substantially all of the full-time and part-time employees. The Retirement System was created in 1970 by consolidating several employee retirement systems. All eligible employees, as defined by the State of Florida, who were hired after 1970, and those employed prior to 1970, who elected to be enrolled, are covered by the Retirement System. Benefits under the plan vest after six years of service. Employees who retired at or after age 62, with six years of credited service, are entitled to an annual retirement benefit, payable monthly for life. The Retirement System also provides for early retirement at reduced benefits and death and disability benefits. These benefit provisions and all other requirements are established by State of Florida statutes.

Pension costs for the Authority, as required and defined by the State of Florida statutes, range between 7.83% and 10.45% of gross salaries for fiscal year 2006. For fiscal years ended June 30, 2006, 2005 and 2004, the Authority contributed 100% of the required contributions. These contributions aggregated $225,283, $165,494 and $133,443, respectively, which represents 8.4%, 7.8% and 8.1% of covered payroll, respectively.

A copy of the Retirement System’s June 30, 2006 annual report can be obtained by writing to the Division of Retirement, Cedars Executive Center, 2639-C North Monroe Street, Tallahassee, FL 32399-1560 or by calling (850) 488-5706.

Note 9 - Commitments and Contingencies

At June 30, 2006, the Authority had in process various uncompleted construction projects with remaining balances totaling $42,234,420.

In addition, the Authority is obligated, under a real estate lease expiring in the year 2047, to make annual payments of $300.

As of June 30, 2006, there were a number of claims and lawsuits pending against the Authority. In the opinion of management and legal counsel, the ultimate outcome of such actions will not have a material effect on the financial condition of the Authority.

Note 10 – Related Party Transactions

One of the Authority Board Member’s immediate family members serves as a consultant to a construction contractor of the Authority. The original contract was awarded prior to the Board Member serving on the Authority’s Board. As of June 30, 2006, the contract value is approximately $49.3 million with outstanding billing of approximately $5.1 million.

The Authority is aware that a Board Member’s firm conducts business with a subsidiary company that shares a common parent company with one of the Authority’s construction contractors. The Authority has no business transactions with the subsidiary company.

Note 11 - Subsequent Events

On September 7, 2006, the Authority issued $304,335,000 Toll System Revenue Bonds, Series 2006 (Non Taxable) (the Series 2006 Bonds). The Series 2006 Bonds were issued for the purpose of providing funds to pay (a) portion of the cost of certain improvements to the System



37

included in the five-year work program of the Authority in effect from time to time and (b) pay the costs and expenses relating to the issuance of the bonds. The Series 2006 bonds consist of (a) $91,865,000 Serial Bonds maturing between July 1, 2020 and July 1, 2029, bearing interest between 4.125% and 5%; and (b) $212,470,000 fixed term bonds at 4.5% to 5% with semi-annual interest payments each January 1 and July 1.

On July 18, 2005, in anticipation of the issuance of the Series 2006 Bonds, the Authority entered into three “cash settlement” swap agreements as a means of hedging the anticipated interest cost of Series 2006 Bonds. On the date of the issuance of the Series 2006 Bonds, the Authority terminated the cash settlement swaps and paid a cash settled swap amount of $1,035,000 to each swap provider from the proceeds of the Series 2006 Bonds.

The Florida Department of Transportation in September 2006 approved a Toll Facility Revolving Trust Fund Loan allowing the Authority to borrow $1.5 million. The loan is unsecured, non interest bearing repayment terms of $250,000 annually beginning 2013 until 2018. The approval of the loan agreement occurred at the October 2006 Board meeting.

SUPPLEMENTAL SCHEDULES

(UNAUDITED)


Schedule of Calculation of Net Revenues and Financial Ratiosas Defined and Required by the Trust Indenture

(Unaudited)

Year ended June 30, 2006

Revenue:Tolls 77,461,639$ Interest and dividends 12,747,227 Other 156,953

90,365,819

Expenses:Operating, general, and administrative 21,369,302

Net revenue 68,996,517$

Actual debt service for all bonds outstanding 32,194,234$

Actual debt service and fund payments as specified by trust indenture 38,264,047$

Ratio of net revenue to debt service for all bonds outstanding(minimum ratio requirement per trust indenture is 1.20) 2.14

Ratio of net revenue to certain debt service and fund payments(minimum ratio requirement per trust indenture is 1.00) 1.80

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2006 Comprehensive Annual Report Annual Report... · John Martinez District Six Secretary, Florida...

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