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Exhibit 1Exhibit 2Exhibit 3Construction and Engineeringhe primary focus of the Fiscal Year 2005work plan was right-of-way acquisitionin preparation for the construction ofmajor transportation improvementprojects, and the design and constructionof priority projects, to provide systemexpansion and congestion relief. In FiscalYear 2005, MDX completed over 85 millionin construction projects, while having over 200 million in active constructioncontracts. Concurrently, with theadvancement of long-term permanentimprovement projects, MDX continued toaddress immediate operational needsthrough the completion of quick turnaround interim projects that improvedmobility at a relatively low cost. MDX wasable to deliver one such project over aweekend at the SR 874 toll plaza. Thisproject, which increased the numberof high speed SunPass lanes, is anexample of the way an innovativetransportation agency can meet demandand enhance mobility.SECTION I MDX CONSTRUCTION AND ENGINEERINGT5MDX’S ACCOMPLISHMENTS ON EACHWORK PROGRAM PHASE ARE AS FOLLOWS: Negotiated significant Federal HighwayAdministration (FHWA) fundingcontributions for the implementation of theSR 874 Incident Management/ Surveillanceproject and the SR 112, SR 878 and SR 924Communication and IncidentManagement/ Surveillance projects. Through an advanced right-of-wayprogram, MDX acquired a total of 33parcels for the SR 836 extension project.A total of 15 parcels were acquiredthrough negotiation and mediation for theInterconnector to Miami InternationalAirport and SR 112; 11 of those parcels incoordination with Miami-Dade Transit(MDT) for shared use. Completed final design of the SR 836auxiliary lane from NW 57th Avenue toSR 826 and SR 836/NW 57th Avenuewestbound ramp improvements. Bothhigh-impact projects. Continued final design of the SR 874/Killian Parkway interchange and the SR 874northbound on-ramp from Kendall Drive. Completed a comprehensive re-evaluationof the Interconnector to Miami InternationalAirport and SR 112 to identify alternatesolutions that would improve mobility inthe area while preserving the envelope fora future connection to the north. Completed the landscaping of SR 112and SR 836. (Exhibit 1) Substantially completed constructionof: SR 836 westbound to southboundHomestead Extension of the FloridaTurnpike (HEFT) connection; Phase I ofthe SR 836 extension projects whichprovided better access to and from NW107th Avenue from SR 836; as well asimproved connections to both thenorthbound and southbound HEFT.(Exhibit 2) Completed the SR 836 Communicationand Incident Management/SurveillanceProjects, the first in a series of IntelligentTransportation System projects plannedfor the current Five-Year Work Program.In Fiscal Year 2005,MDX completedover 85 millionin construction,while havingover 200million in activeconstructioncontracts.

Commenced improvements from NW87th Avenue to NW 107th Avenue includinga bi-directional toll plaza and a bike pathto be completed by the beginning ofcalendar year 2007. The toll plaza hasbeen designed to accommodate highspeed electronic toll collection only lanesand to facilitate the eventual retrofit of thetoll plazas to full Open Road Tolling (ORT).The high-speed electronic tollcollection only lanes are designed to beused as free-flow lanes when MDXimplements full ORT, scheduled for2009/2010. Coordinated closely with affectedcommunities to ensure that they werekept informed of all project activitiesand future enhancements. Elementsof MDX’s Enhancement Manual,featuring the palm frond detail, havealready been incorporated in someof the completed projects as anassurance to the community that MDX’sprojects are for the betterment of thesurrounding neighborhoods.A contract cost and performance, andpolicy management review performed inApril 2005, by an independent consultant,MGT America, affirmed that MDX is to becommended for progress with its workprogram. MDX, with its GeneralEngineering Consultant’s (GEC)assistance, is achieving a complex andaggressive work program implementationconsisting of new construction,modification and improvement ofexisting facilities, and planning forfuture improvements.The programmed budget for the 24projects in the Five-Year TransportationImprovement Program, for Fiscal Year 2005was 204 million and approximately 590million for the entire Five-Year WorkProgram (FY06-FY10). Total expenditurefor Fiscal Year 2005 was 158 million asillustrated on the chart (below).In 2005, the construction industryexperienced unprecedented costescalation in fuel, steel prices, aggregatesand labor costs. MDX’s speed to marketeliminated much of these cost increases inon-going contracts. Our largest contractswere let early enough in the year to avoidimpacts. In addition, MDX closelymonitored the industry for future projectsand has continued to manage the workprogram to deal with increases and stilldeliver the projects in the work program.Planned objectives for Fiscal Year 2006,and beyond, are the completion of asystem-wide ORT Master Plan, andsubsequent completion of interim SR 836projects to assist with ORTimplementation, and completion of finaldesign for SR 874 projects, among others.With these objectives in mind, MDX willembark on an enhanced public outreachprogram to raise awareness of the valueprovided to users in return for their tolls.This program will highlight the emphasisthat MDX places on efficiency, safety andcustomer service.SECTION I MDX CONSTRUCTION AND ENGINEERING Continued construction of the SR 836extension to 137th Avenue, a four-laneextension of SR 836 from NW 107thAvenue to NW 137th Avenue, including theconstruction of 137th Avenue, from SW8th Street to NW 12th Street, a 1.8-milelong, six-lane arterial roadway, pursuant toa joint participation agreement withMiami-Dade County. At time of letting,this phase was the largest design-buildroadway project ever to be awarded in theState of Florida, at a cost of 138 million.This project is currently on schedule forcompletion in March 2007. This is a primeexample of the ability of MDX to deliver anunfunded project earlier than scheduled.(Exhibit 3)6

Toll Operations andInformation Technologyiscal Year 2005 continued the success ofMDX’s Toll Operations and InformationTechnology Department. An elite team ofprofessionals, whose expertise is calledupon by other tolling authorities,continued to fine-tune the operationalaspects of the business by reducing costs,maintaining mobility and providingexceptional service to the traveling publicin Miami-Dade County.FSECTION I MDX TOLL OPERATIONS AND INFORMATION TECHNOLOGYAs stewards of public money, thedepartment employed innovativetechnological solutions, along with indepth analysis of traffic patterns andtrends, to deliver one of the most efficientand effective tolling operations in theindustry. MDX’s objective is to keep tolloperations costs below 0.15 pertransaction. Validation of thisaccomplishment is demonstrated by theactual cost per transaction of 0.092, 38%below the stated obective. (Exhibit 1)7SunPass continues to be the predominantmethod of payment by our customers.As such, imaging-based tolling, violationenforcement, and 24/7 systemmaintenance coverage have becomethe tools of revenue assurance. Theimplementation of the Toll ViolationSystem in Fiscal Year 2005 led to asubstantial decrease in toll violationsand provided revenue assurance tobond holders. (Exhibit 2)SunPass electronic tolling has surpassedthe 60% penetration levels at several tollplazas in a 24-hour period, reaching nearly70% during peak hours. At the SR 874,Don Shula plaza, SunPass penetrationlevels were favorable for reducing thenumber of cash lanes and using theexcess lane capacity to widen theSunPass lanes. MDX brought increasedmobility to this corridor in one weekendwith the demolition of cash lanes and theconstruction of two high-speed electronicSunPass express lanes. By expanding theSunPass lanes to 12-foot lanes with threefoot shoulders, in both directions,capacity throughout increased 33%,from 1,200 vehicles per hour to 1,800vehicles per hour.Fiscal Year 2005 was an extremely busyyear for hurricanes and tropical storms.Emergency Operations and IncidentManagement are paramount to ensuringthat mobility in the county is maintainedbefore and after any storm or incident.The staff of MDX refined its Emergency/Incident Management Plan, which providesStandard Operating Procedures (SOP)to handle all aspects of preparation foremergency operations. MDX teamed upwith other tolling agencies throughoutthe state, to adopt SOP’s that wereendorsed by the Governor’s Office,detailing the requirements for tollsuspension and reinstatement duringemergency situations.Exhibit 1Exhibit 2MDX’s objectiveis to keep tolloperations costsbelow 0.15 pertransaction.Validation of thisaccomplishmentis demonstratedby the actualcost pertransaction of 0.092,38% below thestated obective.

systems operating the toll equipment.Pre-set messages are received when thesystem begins to degrade, allowing forimmediate response that limits laneclosures, traffic congestion andpotential revenue loss. Also, having theability to compare current trafficinformation with historical data, allowsour analytical experts to correctlyforecast changes and provide MDXwith future needs and requirements.(Exhibit 3)Exhibit 3SECTION I MDX TOLL OPERATIONS AND INFORMATION TECHNOLOGYHaving the right tools available at thetouch of a button continues to be thefocus of MDX’s Information Technologyteam. The development of specializeddata spreadsheets, coupled with theability to query the database for specificinformation, has enabled MDX toimmediately identify potential systemproblems in near real-time. Trendanalysis and in-depth scrutiny of datahave increased efficiency anddramatically reduced down time of the8

Communications, Marketingand Public AffairsDX takes pride in being part of thecommunity and is dedicated to themobility of its residents. The Office ofCommunications, Marketing and PublicAffairs reaches out to its customers,community leaders and public officials.SECTION I MDX COMMUNICATIONS, MARKETING AND PUBLIC AFFAIRSM9In 2005, we launched a comprehensiveadvertising campaign entitled ”Drive theFive.” This campaign served to highlightthe five major roadways of MDX and wassuccessfully implemented through aseries of print ads in English and Spanish,radio messages in English, Spanish andCreole, and multiple outdoor placements,including billboards and highway banners.The launch of this brand campaign alsoincluded a grassroots media initiative,which included public affairsprogramming on local radio and televisionstations throughout the county. Programtopics, ranging from the use andaccessibility of SunPass to Open RoadTolling (ORT), were discussed. Theseprograms served to heighten theawareness of MDX and its services,and provided the public with manyopportunities to interact with MDX.The communications team alsoworked to prepare the community forthe implementation of the second phaseof an approved toll adjustment. Notonly did we inform our customers, butwe listened attentively to how wecan improve our system and ourcommunication with them.Presentations were made, to numeroushomeowners associations, communitycouncils, elected officials, chambersof commerce, and other communityand business groups, to explain howtheir toll dollars are being used forexpansion, improvements andmaintenance of our roadways. Theresponse from the communitydemonstrated an understanding of theneed for the toll adjustment, resultingin a formal endorsement from theGreater Miami Chamber of CommerceTransportation Committee.Our communications team was alsoinstrumental in the development ofsuccessful community outreach initiativesand partnerships throughout the year.From successful sponsorships and supportof mainstay organizations, including theMiami-Dade Chamber of Commerce andInformed Families, to the South FloridaSuccess Magazine launch, MDX continuedto play an active role in the community.To further increase business procurement,mentoring and support MDX also hostednumerous conferences and workshops onhow to do business with MDX.The Office ofCommunications,Marketing andPublic Affairsreaches out toits customers,communityleadersand publicofficials.

This past year we also revamped andexpanded our website, www.mdxway.com,to provide users with a wide array oftransportation and traffic information tosimplify their daily commute. Oneenhancement to the website was theaddition of the partnership with 511 andSunGuideSM programs, allowingcommuters to access real-time trafficinformation. The site also gives ourcustomers an opportunity to receive themost up-to-date information on MDX’sprojects, events and businessopportunities, and a chance tocommunicate with MDX.Increased SunPass usage remains animportant goal to save our customers timeand money on our roadways. To deliverthis message, MDX launched the “Savedby SunPass” campaign, which informedmotorists of the numerous advantages ofusing SunPass when driving on MDX’sroadways. In addition to this campaign,MDX expanded its SunPass DirectProgram. This initiative has provided anumber of free transponders to lowincome residents of Miami-Dade County.All eligible drivers can apply for theSunPass Direct program at Team Metrooffices or at Miami-Dade County’straveling Government on the Go Bus.MDX will expand the program to providefree transponders to veterans, thedisabled and select college studentsin the upcoming year.Moving forward, MDX’s Office ofCommunications, Marketing and PublicAffairs has a clear focus on increaseddialogue with our customers, communityleaders and public officials. Our goal is toensure that MDX’s efforts to enhancesafety and mobility on its roadways arecommunicated quickly and efficiently.SECTION I MDX COMMUNICATIONS, MARKETING AND PUBLIC AFFAIRSThese sessions provided opportunities forsmall businesses to learn about MDX anddevelop strategic partnerships andrelationships with other businessesproviding similar services to each other.This outreach initiative helped to fostersolid business opportunities andrelationships with numerous businessesthroughout the community.10

Financial HighlightsReflect Fiscal Successs part of its overall strategy, MDXfinances almost all operations andwork program from the tolls it collects.MDX invests 100 percent of its revenue inthe local community and, for the pastthree years, has allocated approximately 350 million to capital improvements ofthe transportation infrastructure. Over thepast year, debt management continued tobe a top priority in order to maintainstrong credit ratings. The FinanceDepartment continues to seek financingopportunities in order to diversify andminimize interest rate costs. Toaccomplish these goals MDX has utilizeda blend of fixed and synthetic rate debtand variable and auction rate instruments.The Finance Department is also involvedin issuing short-term Commercial PaperNotes and managing the state-backed TollFacility Revolving Trust Fund andInfrastructure Bank loans. By the use ofvarious financing mechanisms, MDX isable to fund its current Five-Year WorkProgram of 590 million. (Exhibit 1)SECTION I MDX FINANCIAL HIGHLIGHTS REFLECT FISCAL SUCCESSA11The Finance Department manages thefiscal operations of MDX, includingadministration of the financing activities,to ensure the agency maintainsappropriate debt coverage ratios andmeets all of its current and long-termobligations. It fulfills the fiduciaryresponsibility of maximizing the valueattained for each dollar the agencycollects in toll revenue on an annual basis.The Finance Department is alsoresponsible for the implementation andoversight of the annual budget,which for Fiscal Year 2005 amounted to 266.9 million.OPERATING & FINANCING HIGHLIGHTSOF FISCAL YEAR 2004-05:OPERATING Change in 2005 Net Assets amounted to 28.6 million in 2005 compared to 22.4million in 2004, an increase of 6.2 million or28%. (Exhibit 2 and 2A) Investment income equaled 5.5 millionin 2005 compared to 2.1 million in 2004, anincrease of 3.4 million or 160% due tohigher investment yields. (Exhibit 2 and 2A) Operating expenses, excludingdepreciation and amortization, totaled 17.4million, decreasing slightly from 2004.(Exhibit 2 and 2A) Toll revenue increased to 58.7 million in2005 compared to 49.4 million in 2004, anincrease of 9.3 million or 18.8%.(Exhibit 2 and 2A) The Fiscal Year 2004-2005toll revenue is comprised of SR112 7.2million, SR 924 10.9 million, SR 874 20.8million, SR 836 17.5 million and violationsof 2.3 million. (Exhibit 3) Fiscal Year 2005 Senior Debt Servicecoverage was 1.78 compared to abudgeted coverage level of 1.47 andminimum trust indenture requirement of1.20. (Exhibit 4)Exhibit 1MDX is confidentthat the executionof the Authority’sstrategic planwill yieldstrongfinancialresults.

FINANCING MDX also issued, on July 29, 2004, 175,000,000 Toll System Revenue Bonds,Series 2004B for the purpose of providingfunds to pay (a) a portion of the cost ofcertain improvements to the systemincluded in the Five-Year Work Program (b)at maturity, the Authority’s outstandingToll System Commercial Paper Notes (c)the cost of a debt service reserve facilityand (d) costs and expenses relating to theissuance of the bonds. The 2004B Bondsconsist of 103,445,000 Serial Bondsmaturing between July 1, 2014 and July 1,2027, bearing interest between 3.85% and5.25% and 71,555,000 fixed term bonds at5%, with semiannual interest paymentseach January 1 and July 1. On March 1, 2005, MDX issued TollSystem Revenue Bonds, Series 2005, infive sub-series, totaling 241,400,000bearing interest at a tax-exempt variablerate. These bonds were issued for thepurpose of providing funds to pay aportion of the cost of certainimprovements to the system included inthe Five-Year Work Program. In connection with the 2004A and 2005bond issuances, MDX entered intointerest rate swap agreements as a meansto secure lower borrowing costs.The agreements provided for fixed interestrates of 5.352% and 4.313% for 2004A and2005, respectively. Under the agreementsthe Authority owes interest at the statedfixed rates to the counterparties of theswaps. In return, the counterparties willowe MDX interest based on the variableBond Market Association (BMA),Municipal Swap Index.Miami-Dade Expressway Authority (MDX)Revenue, Expenses and Changes in Net AssetsFiscal Years Ended June 30(Shown in Thousands)Prepared on Basis of GAAP200520042003 58,651 49,410 44,2592568049Interest & Dividend Income5,4852,1024,415Contributions for Capital 718,5649,9374,1662,967Interest Expense8,7787,3318,563Disposal of Assets1,113––37,17429,15430,094 28,585 22,438 22,914Operating RevenuesTollsOtherNon-operating RevenuesTotal RevenuesOperating ExpensesOperations & MaintenanceDepreciation & AmortizationNon-Operating ExpensesTotal ExpensesCHANGES IN NET ASSETSExhibit 2Exhibit 2ASECTION I MDX FINANCIAL HIGHLIGHTS REFLECT FISCAL SUCCESS On July 29, 2004, MDX issued 68,200,000Toll System Refunding Revenue Bonds,Series 2004A, for the purpose of providingfunds to refund the total outstandingprincipal amount of the (Taxable) Series1996 Bonds. The Series 2004A Bondsconsist of 68,200,000 Serial Bondsmaturing between July 1, 2005 andJuly 1, 2019, bearing interest at a taxexempt variable rate.12

In November 2004, the FloridaDepartment of Transportation executeda loan to MDX from the StateInfrastructure Bank in the amount of 11,613,000 at an interest rate of 2.5%.The loan will be made in installmentsbased on the reimbursement ofconstruction expenditures made by theAuthority on the project specific to theloan agreement. As at June 30, 2005,MDX had received no installme

work plan was right-of-way acquisition in preparation for the construction of major transportation improvement projects, and the design and construction of priority projects, to provide system expansion and congestion relief. In Fiscal Ye ar 2005, MDX completed over 85 million in construction projects, while having over 200 million in active .