Comprehensive Annual Financial Report

For The Years Ended December 31, 2017 & 2016

A Component Unit of the State of Bridge Construction

Turner Turnpike

Completed Roadway Construction

H. E. Bailey Turnpike COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Years Ended December 31, 2017 and 2016

Polecat Creek Deck Pour

Turner Turnpike

Oklahoma Turnpike Authority A Component Unit of the State of Oklahoma

Oklahoma City, Oklahoma Prepared by the Controller Division About the OKLAHOMA TURNPIKE AUTHORITY

The Oklahoma Turnpike Authority (OTA) is an instrumentality of the State of Oklahoma created by the State Legislature by statute in 1947 for the purpose of constructing, operating and maintaining the Turner Turnpike. In 1953, the original purpose was statutorily redefined to allow the construction of additional turnpikes and to change the Authority’s membership to include a representative from each of six Oklahoma districts specifically defined in the OTA’s bylaws and Oklahoma Statute. These changes were ratified by a statewide referendum in January 1954. The Oklahoma State Legislature has the exclusive right to authorize turnpike routes. Subsequently, the OTA has the responsibility to complete engineering and economic feasibility analyses of the authorized routes before any turnpike can be constructed. Turnpike bond sales must be approved by the Council of Bond Oversight and must comply with all rules and regulations of the United States Treasury Department and the United States Securities and Exchange Commission. All OTA debt is issued in accordance with the Trust Agreement dated February 1, 1989, as amended. Since inception, the OTA has provided essential, convenient, cost effective and safe roadways to its patrons.

TABLE OF CONTENTS

INTRODUCTORY SECTION STATISTICAL SECTION Transmittal Letter...... 3 Net Position by Component...... 58 GFOA Certificate of Achievement...... 8 Changes in Net Position...... 59 Description Of The Oklahoma Toll Revenues by Type and Turnpike...... 60 Turnpike System...... 9 Toll Transactions by Type and Turnpike...... 61 Organizational Chart...... 10 Toll Revenues by Principal Revenue Payers - Oklahoma Turnpike Authority Members ...... 11 Payment Method, Class and Turnpike...... 62 Toll Rates by Turnpike, Class and Type...... 64 FINANCIAL SECTION Concession Revenue by Turnpike...... 82 Report of Independent Ratios of Outstanding Debt...... 84 Certified Public Accountants...... 13 Pledged-Revenue Coverage...... 84 Management’s Discussion and Analysis...... 14 Demographic and Economic Statistics...... 85 Basic Financial Statements Principal Employers within the Jurisdiction Statements of Net Position...... 22 of the Turnpike System...... 86 Statements of Revenues, Expenses Full-Time Employees...... 86 and Changes in Net Position ...... 23 Capital Asset Statistics...... 87 Statements of Cash Flows...... 24 Insurance In Force...... 88 Notes to Financial Statements...... 26 Operating Indicators...... 89 Supplemental Financial Schedules Mileage by Type and Turnpike...... 90 Schedule of Employer Proportionate Share of Net Pension Liability...... 47 Schedule of Employer Contributions...... 47 Schedule of Budget Compared to Actual Operating Expense...... 48 Schedule of Annual Debt Service Requirements...... 50 Report of Independent Certified Public Accountants required by Government Auditing Standards.....56

INTRODUCTORY SECTION unpike T arthwork E urner T Night Installation of Beams

Turner Tunpike INTRODUCTORY SECTION

3500 Martin Luther King Ave. P.O. Box 11357 • , OK 73136 • 405-425-3600 • www.pikepass.com

April 30, 2018

To the Honorable Mary Fallin, Governor Oklahoma Turnpike Bondholders and Citizens of the State of Oklahoma

On behalf of the Oklahoma Turnpike Authority (OTA), we are pleased to transmit this comprehensive annual financial report (CAFR) for the year ended December