reston transportation funding plan: updates and recommendations: jan. 13, 2017

County of Fairfax, Virginia

Reston Transportation Funding Plan

Stakeholder MeetingJanuary 13, 2017

Tom Biesiadny, Janet NguyenFairfax County Department of Transportation

Department of Transportation 1

Updates and Recommendation

*This presentation was prepared by Fairfax County Department of Transportation staff. It has not been endorsed by the Board of Supervisors.


Outline• Review – Projects, Cost Estimates, Allocation

Framework, Public/Private Funding, and Funding Scenarios

• Feedback from the Community, Stakeholders, and the Advisory Group

• Staff Proposal, Scenario 12• Road Fund Guidelines• Next Steps/Schedule• Discussion



Project List and EstimatesProjects to be included in the Reston Transportation Funding Plan were either recommended by the Reston Phase I Comprehensive Amendment or were necessary to support the plan.

All estimates are planning level estimates. Network Analysis study will refine the road widths and will provide phasing. Staff is developing project prioritization.

*Project is partially or completely located in Dranesville District. Remaining projects are located in Hunter Mill District.


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

RESTON FUNDING PLAN PROJECTS

Projects Estimate as of 2016

Roadway Improvements DTR Crossing at Soapstone Overpass – Sunrise Valley Drive to Sunset Hills Road $170,000,000 DTR Town Center Parkway Underpass – Sunrise Valley Drive to Sunset Hills Road $170,000,000 Fox Mill Road Widening – Reston Parkway to Monroe Street $60,000,000 Monroe Street Widening – West Ox Road to Town of Herndon* $80,000,000 Pinecrest Road Extension – South Lakes Drive to Sunrise Valley Drive $25,000,000 Reston Parkway Widening – South Lakes Drive to DTR $25,000,000 Fairfax County Parkway - DTR to West Ox Road Widening $80,000,000 Fairfax County Parkway at Sunrise Valley Drive (Interchange) $400,000,000 South Lakes Drive Overpass – Sunrise Valley Drive to Sunset Hills Road $90,000,000 West Ox Road Widening – Lawyers Road to Centreville Road $100,000,000

Total Roadway Improvements $1,200,000,000 Intersection Improvements

Centreville Road at Sunrise Valley Drive* $10,000,000 Centreville Road/DTR EB on/off Ramps* $1,500,000 Hunter Mill Road/Sunset Hills Road $3,500,000 Reston Parkway/Bluemont Way $4,000,000 Reston Parkway/DTR WB on/off Ramps $5,000,000 Reston Parkway/New Dominion Parkway $5,000,000 Reston Parkway/Sunrise Valley Drive $15,000,000 Wiehle Avenue/DTR EB on/off Ramps $600,000

Total Intersection Projects $44,600,000 Grid Network $1,021,000,000 Total $2,265,600,000


Reston Funding Plan Allocation FrameworkSix options were proposed to the Advisory Group as methods of allocating costs. This allocation has been the basis for discussion of funding scenarios.

In this framework, public and private revenues will share costs, approximately equally.

Reston Roadway projects would be paid for with public revenues.

Intersections and the Grid would be paid for with private revenues.

Staff believes it is important to have a methodology and rationale behind proposed strategies to support decision making.



Allocation Option 5: Project Category

Project Estimate Allocation ($) Reston Roadways $1,200,000,000 Public Share 100% $1,200,000,000Private Share 0% $0 Reston Intersections $44,600,000 Public Share 0% $0Private Share 100% $45,000,000 Grid $1,021,000,000 Public Share 0% $0Private Share 100% $1,021,000,000 Total $2,265,600,000 Public Share 53% $1,200,000,000Private Share 47% $1,065,600,000

*The public private split for the Tysons Transportation Funding plan is 56/44.


Public Share of Funding Plan


• Individual totals by funding source may change, but the County will remain committed to funding the public share of the Board approved Reston Funding Plan.


PUBLIC REVENUE SOURCESRevenue Source AmountFederal

Regional Surface Transportation Program (RSTP) $155,000,000Federal Discretionary Grant Programs (TBD) $0

Total Federal Revenues $155,000,000 State

Smart Scale (HB2) (Construction District Program and State High Priority Program) $174,500,000

Total State Revenues $174,500,000 Regional

Northern Virginia Transportation Authority (NVTA) 70% Regional Funds $580,550,000

Total Regional Revenues $580,550,000 Local

Commercial & Industrial Tax (C&I) $79,750,000General Obligation (G.O.) Bonds $194,000,000NVTA 30% Local Funds $16,200,000

Total Local Revenues $289,950,000

Total Public Revenues $1,200,000,000


Private Share of Funding Plan


Grid estimate $1,021,000,000Less: Expected developer in-kind contributions to the Grid $716,000,000Net funding need from private share for Grid $305,000,000Add: Intersections $45,000,000Contributions Needed Towards Private Share From Other Funding Mechanism(s) $350,000,000

Total Private Share (Total Grid + Intersection Improvements) $1,066,000,000

A significant portion of the total private share is expected to be paid for through in-kind contributions to the grid from developers as redevelopment occurs. The balance of the private share is expected to be paid for through contributions to another funding mechanism(s).

Contributions Needed Towards Private Share from Other Funding Mechanism(s)




Only properties within the Reston TSAs (brown line) would be subject to any proposed Service District.



Funding Scenarios Proposed to meet

$350M Private Share Balance

Contribution Rates and Related ShortfallRoad Fund Tax/Service District over Reston TSAs

Residential/DU

Commercial/SF

Other Funding

Needed to meet

$350M ($M)

Tax District Rate

Service District

Rate

Tax/Service District

Contribution to $350M

(%)Scenario 1: Tysons residential rates $2,571 $18.34 $0 N/A N/A 0%Scenario 2: Tysons commercial rates $4,627 $12.63 $0 N/A N/A 0%

Scenario 3: Rates proportional to development in Reston TSAs $7,058 $5.88 $0 N/A N/A 0%

Scenario 4: Tysons rates and Service District over Reston TSAs $2,571 $12.63 $79 N/A 0.012 22%

Scenario 5: Tysons rates and Tax District over Reston TSAs $2,571 $12.63 $79 0.025 N/A 22%

Scenario 6: Tysons Rates and Service District over Reston &TSAs $2,571 $12.63 $79 0.025 or 0.012 22%

Scenario 7: Tysons Rates and Service District over Small Tax District 5

$2,571 $12.63 $79 0.025 or 0.012 22%

Scenario 8: General adjustment from Tysons rates, -11% $2,288 $11.24 $108 0.035 or 0.017 31%

Scenario 9: Specific adjustments from Tysons rates, +15% residential, -19% commercial

$2,957 $10.23 $80 0.025 or 0.013 23%

Scenario 10: Splits $350M equally between Road Fund/Service District and maintains Tysons proportions for Res/Com road fund rates

$1,635 $8.19 $175 N/A 0.027 50%

Scenario 11: Similar total expense per Road Fund (residential) contribution and Service District (avg. home) contribution

$2,080 $10.09 $132 N/A 0.020 38%

*Scenario 6 and 7 would not generate significant amounts of additional revenue to warrant implementation of an expanded service district and were removed from consideration. Please note that the information provided in this presentation is not final and is for discussion purposes only.


Feedback from Advisory Group

The Advisory Group created a written document that provided the group’s initial high level feedback on the proposed Reston Transportation Funding Plan on September 26, 2016.

• Agreement on public/private allocation framework.

– Roadway Improvements to be paid by public funding.

– Intersection Improvements to be paid by private funding.

– Grid Network to be paid by private funding.

• The tax district option is unrealistic and could be removed from further consideration for the funding plan.

• The Advisory Group is most interested in funding options that include both proffer (road fund) and service district revenue streams.



Feedback from Advisory Group Cont.

• The Advisory Group team recognizes that transportation is but one of many important development objectives under the comprehensive plan update that must be funded.

• There is agreement that there should be a sunset provision that terminates the Road Fund and service tax district when all the projects for which they were intended have been funded.

• The Advisory Group directed staff to pursue all further analysis on options 8, 10, and 11.



Funding Scenarios 8, 10, and 11Scenario 8: Uses the Tysons combined rates for residential and commercial and adjusts them downwards by 11% based on an average assessed value difference between all properties in Reston TSAs and Tysons in 2015. A service district over only the Reston TSAs fills any remaining funding needs based on the adjusted rates.

Scenario 10: Splits the private funding shortfall ($350M) equally between a road fund and a service district and determines rates that maintain the same residential to commercial road fund contribution ratio as Tysons.

Scenario 11: At an average annual service district contribution rate of $0.02/$100 of assessed value, a current resident in the Reston TSAs with an average residence of approximately $260,000 assessed value will have an out of pocket expense, paid over 40 years, approximately equal to a residential per dwelling unit contribution of a developer.


Road Fund, New Development – Reston TSAs All Properties – Reston TSAsResidential* Commercial Service District Contribution

to $350M (%)Scenario

Rate per Dwelling Unit Revenue

Rate per Square Foot Revenue Rate+ Revenue

8 $2,288 $87,000,000 $11.24 $155,000,000 $0.017 $108,000,000 31%10 $1,635 $62,000,000 $8.19 $113,000,000 $0.027 $175,000,000 50%

11 $2,080 $79,000,000 $10.09 $139,000,000 $0.020 $132,000,000 38%

+Rate per $100 of assessed value*Residential includes apartments.


Activity Since Last Stakeholder Meeting, September 30, 2016

• Community Meeting– November 7, 2016

• Advisory Group Meetings– November 21, 2016 – December 19, 2016

• Staff Develops Funding Scenario 12 after the Advisory Group Meeting in November and before the Board Transportation Committee Meeting in December

• Board Transportation Committee Meeting– December 13, 2016

• Reston Association Board Meeting– December 15, 2016



Summary of Feedback from Community Meetings

• Reston should not be compared to Tysons. – The Tysons Transportation Funding Plan served as a template or

starting point for development of the Reston Transportation Funding Plan.

– While staff recognizes that there are differences between Reston and Tysons, the funding plans will share some similar foundations.

– Staff does not want to create a situation where the transportation funding plan would create a competitive advantage or disadvantage to any area in the County.

– Ultimately, the Reston Transportation Funding Plan is being developed to fit the needs of the Reston TSAs and will be different in several areas from the Tysons Transportation Funding Plan.



Summary of Feedback from Community Meetings (Cont.)

• Developers should pay for all transportation costs associated with development. The revenues from homeowners should not be used to pay for streets that benefit developers.– Rezoning applications are required to submit a traffic impact analysis (TIA).

Each development must mitigate the transportation impacts of their development.

– Developers will also be asked to contribute towards the Road Fund in conjunction with any development of property within the Reston TSAs such as change in use, zoning district, or increases in site development density.

– Still, there will be necessary improvements in the TSAs that are not attributable to a single development. The benefits of these improvements apply to all who live in, work in, or visit Reston. These benefits include enhanced road connectivity, new sidewalks and bike lanes, and increased access to the Metrorail stations.




• Developments that create more traffic impact should pay for more of the improvements.– Rezoning applications are required to submit a traffic impact analysis

(TIA). Each development must mitigate the transportation impacts of their development.

– Additionally, a Road Fund would address the scale of a development by having developers contribute on a per dwelling unit or per square foot basis. The magnitude of the impact will be reflected in the contributions toward the road fund. The more dwelling units or square footage being built, the more the developer contributes.




• There was concern about developers building the expected in-kind contributions for less than the estimated total and whether corners would be cut for cost savings.– The total cost of the in-kind contributions to the Grid Network, is

calculated using VDOT unit costs and is a planning level estimate.

– If a developer can construct a section of the Grid Network at a lower cost, it has no negative impact on the funding plan.

– A privately constructed Grid Network segment would be inspected by County and VDOT inspectors and must meet required County and VDOT standards and design guidelines to ultimately be dedicated as a public street.



Summary of Feedback from Stakeholder Meetings

• Those who develop early in the funding plan should not have to contribute more to the funding plan than later developments.– The County, expects development to occur throughout the life of the

funding plan. – With the creation of a service district, all landowners will begin to

contribute to the funding plan immediately.– A landowner that develops in the later years of the funding plan would

have been contributing via the service district from the day the service district was implemented or the day they purchased the land (the latter of the two dates). Such a landowner would also share the benefits of the transportation improvements.



Summary of Feedback from Stakeholder Meetings (Cont.)• More emphasis should be placed on a service district rather than road

funds. Service districts are bondable and more reliable.– There are trade-offs between the use of a road fund and a service district. – A road fund places the funding burden on new development. – A service district spreads the funding burden over all development; both existing

and future development has to pay into a service district. The higher the service district rate, the higher the relative funding burden on residential property.

• The road fund contribution for commercial property proposed in several of the scenarios is too high, and will make it difficult to develop commercial property in the Reston TSAs.

– Every development is different and staff understands that different developments absorb different costs.

– Some adjustments made in Scenario 12.



Summary of Feedback from Stakeholder Meetings (Cont.)

• Are all of the improvements in the Reston Transportation Funding Plan needed?

– Transportation improvements included in the funding plan were recommended by the Reston Phase I Comprehensive Plan Amendment, which was the result of the Reston Master Plan Special Study. That study took four years and included robust community discussion and participation.

– These improvements are meant to support the plan’s vision for mixed land uses in the Reston TSAs supported by a multi-modal transportation system.

– The Reston Network Analysis Study also verified the need for the improvements in the Reston TSAs.

– At the beginning of the Network Analysis, each grid link was assumed to be two lanes, so that the roads would not be overbuilt. The study has shown that none of the links need to be widened to four lanes.



Advisory Group Meeting, November 21, 2016

• The Advisory Group did not reach a consensus on a final rate scenario.

• Various members of the Advisory Group voiced that each scenario had aspects that were preferable and that each scenario also had aspects that were not preferable.

• There was differing opinion on the appropriate level of specificity of any recommendation.

• The Advisory Group requested additional time to allow for the Reston Association Board to be briefed and to discuss the funding plan.



Staff Proposal: Scenario 12 Road Fund: Residential: $2,090 per dwelling unit; Commercial: $9.56 per square footService District: $0.021 per $100 of assessed value

With additional information, after further discussions with the Advisory Group, and feedback from the community and stakeholders, staff recommended a new scenario, Scenario 12, for the following reasons:

• It includes both a road fund and service district. • Only properties within the Reston TSAs will be affected.• Service district collections from current homeowners in the Reston TSAs would not exceed the

current cost estimates for Intersection Improvements ($44,600,000). This means, the Grid Network is completely paid for by commercial/industrial properties and residential owner occupied properties built after the establishment of the funding plan.

• Rates proposed for the road fund in Scenario 12 are within a range that is not significantly above or below road fund contribution rates in the Tysons Transportation Funding plan or other fund areas in the County.

• The road fund and service district rates proposed in Scenario 12 are within the range of the three scenarios for which the Advisory Group had most interest (Scenario 8, 10, and 11).




Funding Scenarios Proposed to meet

$350M Private Share Balance

Contribution Rates and Related ShortfallRoad Fund Tax/Service District over Reston TSAs

Residential/DU

Commercial/SF

Other Funding

Needed to meet

$350M ($M)

Tax District Rate

Service District

Rate

Tax/Service District

Contribution to $350M

(%)Scenario 1: Tysons residential rates $2,571 $18.34 $0 N/A N/A 0%Scenario 2: Tysons commercial rates $4,627 $12.63 $0 N/A N/A 0%Scenario 3: Rates proportional to development in Reston TSAs $7,058 $5.88 $0 N/A N/A 0%

Scenario 4: Tysons rates and Service District over Reston TSAs $2,571 $12.63 $79 N/A 0.012 22%

Scenario 5: Tysons rates and Tax District over Reston TSAs $2,571 $12.63 $79 0.025 N/A 22%

Scenario 6: Tysons Rates and Service District over Reston &TSAs $2,571 $12.63 $79 0.025 or 0.012 22%

Scenario 7: Tysons Rates and Service District over Small Tax District 5 $2,571 $12.63 $79 0.025 or 0.012 22%

Scenario 8: General adjustment from Tysons rates, -11% $2,288 $11.24 $108 0.035 or 0.017 31%

Scenario 9: Specific adjustments from Tysons rates, +15% residential, -19% commercial

$2,957 $10.23 $80 0.025 or 0.013 23%

Scenario 10: Splits $350M equally between Road Fund/Service District and maintains Tysons proportions for Res/Com road fund rates

$1,635 $8.19 $175 N/A 0.027 50%

Scenario 11: Similar total expense per Road Fund (residential) contribution and Service District (avg. home) contribution

$2,080 $10.09 $132 N/A 0.020 38%

Scenario 12: Staff Proposal $2,090 $9.56 $139 N/A 0.021 40%



Funding Scenarios 8, 10, 11, and 12


Road Fund, New Development – Reston TSAs Service District, All Properties in Reston TSAs

Residential Commercial Service District Contribution to $350M

(%)Scenario Rate Revenue Rate Revenue Scenario Rate Revenue

8 $2,288 $87,264,320 $11.24 $154,412,602 8 $0.017 $108,323,078 31%

10 $1,635 $62,358,900 $8.19 $112,512,385 10 $0.027 $175,128,715 50%11 $2,080 $79,331,200 $10.09 $138,614,160 11 $0.020 $132,054,640 38%12 $2,090 $79,712,600 $9.56 $131,287,400 12 $0.021 $139,000,000 40%

• Apartments would contribute towards the residential road fund rates.• Service district rate is shown as the annual average rate per $100 of assessed value.• Revenues shown do not account for inflation and are total revenues over 40 years.


Funding Scenarios 8, 10, 11, and 12


67%7%12%

9% 4%

SCENARIO 12

67%7%13%

9% 4%

SCENARIO 11

67%8%

14%

7%3%

SCENARIO 8

67%6%11%

11%5%

SCENARIO 10

Percent Contribution to Total Private Share ($1.066B):

Developers and Commercial Property Owners

Residential Property Owners


Financial Impact of a Service District by Scenario


ResidentialAssessed

Value $260,000* $500,000 $750,000

Option Service District Rate Annual 40 Year

Total Annual 40 Year Total Annual 40 Year

Total8 $0.017 $44.20 $1,768 $85.00 $3,400 $127.50 $5,100

10 $0.027 $70.20 $2,880 $135.00 $5,400 $202.50 $8,10011 $0.020 $52.00 $2,080 $100.00 $4,000 $150.00 $6,00012 $0.021 $54.60 $2,184 $105.00 $4,200 $157.50 $6,300

CommercialAssessed

Value $1,000,000 $15,000,000 $50,000,000

Option Service District Rate Annual 40 Year

Total Annual 40 Year Total Annual 40 Year Total

8 $0.017 $170 $6,800 $2,550 $102,000 $8,500 $340,00010 $0.027 $270 $10,800 $4,050 $162,000 $13,500 $540,00011 $0.020 $200 $8,000 $3,000 $120,000 $10,000 $400,00012 $0.021 $210 $8,400 $3,150 $126,000 $10,500 $420,000

*Approximate average assessed value in Reston TSAs.


Board Transportation Committee Meeting, December 13, 2016

• Presentation was well received by the Board.• Staff Proposed Funding Scenario 12.• Several keys points of feedback were reaffirmed; including not

exceeding the funding plan duration for the service district and road fund and welcoming additional feedback.

• An inquiry was made into whether or not cost estimates for the projects could be revised.

• It was suggested to advertise a window of rates for the service district to allow for additional feedback and flexibility.



Advisory Group Meeting, December 19, 2016• Discussion about focus of the Advisory Group.

– Fine tuning could potentially be left to staff and the Board of Supervisors.

• The community’s input was more concerned about the service district and that their contributions would not be paying into the grid.

• There was general discussion on the proposed rates.– The group and the community preferred advertising a specific rate,

rather than a window of rates for the purpose of public hearing for board endorsement of the funding plan.

• The Advisory Group endorsed funding scenario 12.



Reston Road Fund Guidelines Summary• Road Fund Guidelines direct the management and operation of a

Road Fund• Rates• Procedures for increasing rates• Defining purpose• Boundary definitions• Who pays into the fund, and when (payment schedule, 100% at

occupancy permit (under review))• Outlines eligibility for creditable expenses • Process for requesting credits• Still evaluating impact on affordable dwelling units and workforce

dwelling units.



Next Steps/Tentative Schedule


Date Event

January 19, 2017 • Community Informational Meeting at North County Government Center, 7:30PM.

January 24, 2017 • Request authorization to advertise public hearing on Reston Transportation Funding Plan

February 28, 2017 • Public hearing to seek Board approval of Reston Transportation Funding Plan

• Request authorization to advertise public hearing on associated Service District over the Reston TSAs only

• Board adoption of Road Fund and Road Fund GuidelinesMarch/April 2017 • Public hearing on specific Service District proposal over

Reston TSAs only.


Comments/Questions?


reston transportation funding plan: updates and recommendations: jan. 13, 2017

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