reston funding plan: rates/contributions discussion

County of Fairfax, Virginia

Reston Funding Plan

Reston Network Analysis & Funding Plan Advisory GroupApril 11, 2016

Ray Johnson / Tom BiesiadnyFairfax County Department of Transportation

Rates/Contributions Discussion


Background• Board approved Reston Phase I Comp Plan amendment in 2013.• One follow-on motion called for the development of a funding plan.• Funding plan will have multiple components, and it is anticipated

that the plan will include both private and public share contributions.• Total cost of improvements is ~ $2.6 billion:

– Using a 40 year horizon, and– Considering a variety of options.

• Staff is not making a recommendation, but rather looking for feedback.

• No decisions have been made.

Department of Transportation 2


Plan AssumptionsConstant Dollars:

• Using present dollars (2015).• Will not inflate revenues or expenses over 40 year period. • Assuming that construction costs and revenues used to fund the

plan will grow at approximately the same average rate over the 40 year period.

• Will continue to monitor the plan over the 40 years.

Maintenance: • Operations/maintenance of the new roadway facilities are assumed

to be funded by VDOT.• VDOT is aware of future transportation improvements in Reston.



Plan Assumptions ContinuedTransit Service:

• Unlike Tysons, Reston has a significant amount of transit service, proving internal circulation, and connections to areas located outside Reston.

• Improvements were also made with the arrival of the Silver Line to Wiehle-Reston East.

• Tysons prior to opening of Silver Line, had no internal transit circulation and fewer routes accessing Tysons.

• As a result, we are not proposing to add additional service. Change in transit needs due to Phase II of Silver Line will be accommodated through restructuring of existing service, using existing resources.

• However, transit needs will continue to be assessed.



Review: Tysons Funding Plan


TysonsTysons-wide Outside $725,000,000Public Share 90% $652,500,000Private Share 10% $72,500,000

Tysons-wide Inside $482,000,000Public Share 10% $48,200,000Private Share 90% $433,800,000

Grid $865,000,000Public Share 0% $0Private Share 100% $865,000,000

Neighborhood Access Improvements $77,000,000Public Share 100% $77,000,000Private Share 0% $0

Transit $953,000,000Public Share 100% $953,000,000Private Share 0% $0

Total $3,102,000,000Public Share 56% $1,730,700,000Private Share 44% $1,371,300,000

Private ShareTysons-Wide $506,000,000

Service District $253,000,000Road Fund $253,000,000

Tysons Grid $865,000,000In-kind Contributions $561,000,000Road Fund $304,000,000


List of Improvements to be Funded


Intersection improvements exclude: Sunrise Valley Drive @ Frying Pan Road, Centreville Road @ Frying Pan Road, and Centreville Road/DTR EB on/off Ramps. These improvements are outside of Reston TSAs and Reston Study Area.


For Discussion Purposes Only

• The following information is not final and is for discussion purposes only.

• Staff is still in the process of gathering data and refining plan costs.• Staff is seeking feedback on the options.



Reston Funding Options1-3


Please note that the information provided in this presentation is not final and is for discussion purposes only.


Reston Funding Options 4-6



Staff proposes to use option 5, but is seeking comments on this proposal


Reston Funding Plan Allocation FrameworkPublic and private revenues will share responsibility for funding plan costs, approximately equally.

Reston Roadway projects would be paid for with public revenues.

Most Intersections and the grid network would be paid for with private revenues.




Private Share Narrative

• Total private share: $1,289,000,000.• In-kind contributions for grid of streets is expected to come from

Reston TSAs (65%).• Remaining 35% of grid costs and 100% of intersection

improvements to be paid for through other funding sources.• Combined private share totals: 62.6% ($805M) in-kind and 37.4%

($480M) other funding.• Solving for $480M.





Reston Phase I Plan Amendment: Conceptual Land Use


Private Share Calculations

Step 1: Contributions needed for grid network after in-kind contributions.


Reston Grid Estimate PercentGrid estimate $1,244,000,000 100%Less: Expected in-kind contributions 809,000,000 65%Funding gap for Grid $435,000,000 35%

Step 2: Total cash/other contributions needed to fully fund Grid and Intersections.

Private Other Contributions Needed EstimateFunding gap for Grid $435,000,000 Add: Intersections 45,000,000 Total other private contributions needed $480,000,000

Please note that the information provided in this presentation is not final and is for planning discussion purposes only.


Current Fund Area Rates - 2016


Development/Fund Area

Residential Rate per Dwelling Unit

Non-Residential Rate per Sq. Ft.

Fairfax Center $1,316 $5.94

Centreville $2,522 $6.38

Tysons (Rezonings Prior to 2/1/2013) $970 $4.37

Tysons-Wide $1,045 $5.90

Tysons Grid of Streets $1,045 $6.73

Combined Tysons Rates:

$12.63/sq.ft.;$2,090/unit


Development Levels


Reston TSA Comprehensive Plan Development Potential

Land Use Type2010 Existing Land

Use Development

Potential New Development

(sq. ft.) (sq. ft.)

Residential 5,860,000 (5,860 Units)

52,800,000 (44,000 units)

46,940,000 (38,140 Units)

Office 20,982,169 29,700,000 8,717,831

Retail 1,094,476 2,100,000 1,005,524

Industrial 841,957 590,000 -251,957

Institutional 2,096,840 2,400,000 303,160

Hotel 936,782 4,900,000 3,963,218

Total 31,812,224 92,490,000 60,677,776

Total new non-

residential potential:

13,737,776 sq. ft.

Total new residential potential



Private Funding Models*Private share is assumed to be $1.289B. All options assume that 65% of grid will be funded through in-kind contributions. All options assume that the remaining 35% of grid costs and all of intersection costs will be paid for by other contributions. Solving for $480M.

Road Fund Only1. Use Tysons residential rates (Tysons-wide and Tysons grid combined but normalized for unit

size) and determine Reston commercial rate to meet need.2. Use Tysons commercial rates (Tysons-wide and Tysons grid combined) and determine Reston

residential rate to meet need.3. Determine set of rates that match proportion of total residential vs. total commercial development

in Reston.

4. Fills gap with a service district over Reston TSA (all properties).5. Fills gap with a tax district over Reston TSA (C&I Only).6. Fills gap with a service district over Reston and Reston TSAs.7. Fills gap with a service district over Special Tax District 5.



Road Fund with other revenue sources (Use Tysons combined rates (in option 1 and 2) and…


Private Funding Option #1

Use Tysons residential rates (Tysons-wide and Tysons grid combined but normalized for unit size) and determine Reston commercial rate to meet need.



Residential CommercialRate 2,571$ 27.80$ Revenues 98,057,940$ 381,942,060$ (%) of Need 20% 80%

Total Towards Plan % Plan Funded480,000,000$ 100%

Residential rate roughly equivalent to Tysons ratePrivate Funding Option 1



Use Tysons commercial rates (Tysons-wide and Tysons grid combined) and determine Reston residential rate to meet need.





Private Funding Option 2Commercial rate roughly equivalent to Tysons rate



Determine set of rates that match proportion of total residential vs. total commercial development in Reston.





Rates in Proportion to DevelopmentPrivate Funding Option 3



Use Tysons combined rates and fill gap with a service district over Reston TSA.

Board could enact.



Service District Rate $0.035(average annual rate over 40 years)


Amount Towards Plan % Plan FundedFund Area 271,566,051$ 57%Gap (208,433,949)$ 43%

Private Funding Option 4Rates roughly equivalent to Tysons rates



Use Tysons combined rates and fill gap with a tax district over Reston TSA (C&I Only).

Land owner petition required.



Tax District Rate $0.07(average annual rate over 40 years)



Gap (208,433,949)$ 43%

Rates roughly equivalent to Tysons ratesPrivate Funding Option 5




Option 4 is service district (all properties), and Option 5 is tax district (C&I properties); each option within Reston TSA



Use Tysons combined rates and fill gap with a service district over Reston and Reston TSAs.

Board could enact.





Amount Towards Plan% Plan FundedFund Area 273,936,513$ 57%Gap (206,063,487.12)$ 43%





Option 6 - service district (all properties)



Use Tysons combined and fill gap with a service district over Special Tax District 5.

Board could enact





Amount Towards Plan% Plan FundedFund Area 289,070,782$ 60%Gap (190,929,217.74)$ 40%





Option 7 - service district (all properties) in Special Tax District 5.


Private Funding Options 4-7• Options 4-7 show the short gap when developers commit to the

same rates as Tysons.• A potential revenue source to fill this gap is a service or tax district.• Below are rates used in calculations in previous slides to fill this

short gap:



Rate is average annual rate over 40 years.

Assessed Area RateOption 4 Reston TSA $0.035Option 5 Reston TSA C&I only $0.070Option 6 Reston Study Area $0.025Option 7 Special Tax District 5 $0.025


Summary of All Options

* - Assessment value between Special Tax District 5 and Reston is not significant enough warrant more than a $0.005 difference in rate.


Contribution Rates

Residential/DW Commercial/SF TD SD

Option 1 $2,571 $27.80 N/A N/A

Option 2 $8,036 $12.63 N/A N/A

Option 3 $9,680 $8.07 N/A N/A

Option 4 $2,571 $12.63 N/A $0.035

Option 5 $2,571 $12.63 $0.07 N/A

Option 6 $2,571 $12.63 N/A $0.025

Option 7 $2,571 $12.63 N/A $0.025*


Average Annual Cost to Homeowner


AssessedValue

Service District Rate

$0.020 $0.025 $0.030 $0.035

$300,000 $60.00 $75.00 $90.00 $105.00

$400,000 $80.00 $100.00 $120.00 $140.00

$500,000 $100.00 $125.00 $150.00 $175.00

$600,000 $120.00 $150.00 $180.00 $210.00

$700,000 $140.00 $175.00 $210.00 $245.00

$800,000 $160.00 $200.00 $240.00 $280.00

$900,000 $180.00 $225.00 $270.00 $315.00


Taxes in Reston


Type FY16 Tax Rate Residential Commercial

Real Estate $1.090 Stormwater $0.025 Pest Management $0.001 Commercial & Industrial $0.125 Reston Community Center $0.047

Avg Annual Taxes Paid in FY16 $6,014*

Depending on Location in Reston

Route 28 TD $0.180 Dulles Rail Phase I $0.190 Dulles Rail Phase II $0.200

*County mean assessed value in FY16 = $517,101.Rates subject to change per BOS for FY 2017 Budget Adoption on April 26, 2016.


Other Reston/General ContributionsReston Specific Contributions• Parks - $1.72 per sq. ft. of GFA of new development towards athletic field development – inside

TSAs.• Housing Trust Fund - $3 per sq. ft. of new non-residential (also in Tysons).

General Contributions (not Reston Specific) • Schools - Contributions to schools based on number of students generated.• Parks – fair share contribution to athletic fields, potential additional residents x $893 per

person. (Outside TSAs. Does not apply to Reston Phase I (TSA) and Tysons.)• Workforce Housing - County’s current policy is for 12% of new residences to be set aside for

work force housing. In Tysons, this number is 20%. (Reston has a sliding scale for WDU and may exceed the 12% minimum.)

• Fire Marshal - $10K contributions for impacted signals for preemptive devices.

Other Expectations• Green building and storm water management expectations, not contributions.• Design of site and building, not contributions.



Next Steps

• Refine funding plan options based on input from Supervisor and Advisory Board, including defining geographic boundaries.

• Outreach to stakeholders and public to seek additional feedback.

• Discuss plan based on feedback received – potentially May 24, 2016

• Seek Board of Supervisors approval



Comments/Questions/Discussion


reston funding plan: rates/contributions discussion

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