Reston Transportation Funding Plan: July 15, 2016

County of Fairfax, Virginia
Reston Transportation
Funding Plan
Stakeholder Meeting
July 15, 2016
Tom Biesiadny, Janet Nguyen, Ken Kanownik
Fairfax County Department of Transportation
Department of Transportation
1

Agenda
• Background Information
– Purpose
– Improvements to be funded
– Preliminary cost estimates
– Reston funding plan overview
• Coordination with the Reston Network Advisory
Group
• Status
2

Terms
As defined specifically for use in the Reston Transportation Funding Plan:
• Private Funding: Revenues generated from sources specifically from Reston, to fund projects in Reston.
• Proffer: Voluntary commitment by landowners/developers to perform an act or to donate money, land, services or
products to address/offset impact(s) arising from their proposed rezoning:
– Cash Proffer: Money voluntarily agreed to in writing signed by the owner of property subject to rezoning,
submitted as part of a rezoning application.
– In-Kind Contribution: Contribution of goods, services, or construction. For example, a developer seeking
rezoning agrees to implement a part of the project for which the rezoning is being sought.
• Road Fund: Dedicated account for cash proffers towards road improvements, in a specific area that are not
otherwise being constructed by a developer.
• Service District: A service district is a mechanism established by the Board of Supervisors to fund improvements
located within a defined geographic area. (i.e. sanitary, transportation, gypsy moths).
• Transportation Tax District: A tax district is a mechanism established by voluntary petition of landowners in a
defined area and is approved by the Board of Supervisors to fund transportation improvements within the defined
area. (i.e. Dulles Rail Phases I & II, Route 28).
• Public Funding: Revenues generated from County-wide tax sources that are being applied to the Reston
Transportation Funding Plan.
• Transit Station Area: The area within the influence area of a Metrorail station.
3

Purpose
The Reston Phase I Comprehensive Plan Amendment was adopted by
the Fairfax County Board of Supervisors on February 11, 2014. The
plan amendment increases densities in the Reston area and
recommends new transportation projects to support new commercial
and residential development.
The Board follow on motion from the adoption included the Planning
Commission recommendation to conduct:
4
“…an inclusive process to prepare a funding plan for the
transportation improvements recommended in the Reston Master
Plan and report with its recommendations. The funding plan should
include arrangements for financing the public share of Reston
infrastructure improvements and facilitate co-operative funding agreements
with the private sector. The PC strongly believes that public and private
investment in Reston is both critical and responsible for ensuring Reston’s
future success.”

Improvements to be Funded
• Road transportation improvements1
(Bridges/Overpasses, Widenings, Extensions,
Interchanges) to enhance connectivity
• Intersection improvements required for adequate
traffic operations
• Grid improvements (a network of new multimodal
streets around the Metrorail stations) to enhance
pedestrian and vehicular circulation in, around, and
through, station areas
5
1 All roadways will be designed with pedestrian facilities. Many will also have bike facilities.

Improvements to be Funded
6
Reston Improvements Estimate
All estimates are planning level estimates and are subject to adjustments.

List of Improvements to be Funded
7
Reston Funding Plan Projects
Estimate
Roadway Projects
DTR Crossing at Soapstone Overpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000
DTR Town Center Parkway Underpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000
Fox Mill Road Widening – Reston Parkway to Monroe Street $60,000,000
McNair Farms Drive Extension/Widening $10,000,000
Monroe Street Widening – West Ox Road to Town of Herndon $80,000,000
Pinecrest Road Extension – South Lakes Dr to Sunrise Valley Dr $25,000,000
Reston Parkway Widening – South Lakes Drive to DTR $25,000,000
Route 286 - DTR to West Ox Widening $80,000,000
Route 286 at Sunrise Valley Drive (Interchange) $400,000,000
South Lakes Drive Overpass – Sunrise Valley Drive to Sunset Hills Rd $90,000,000
West Ox Road Widening – Lawyers Road to Centreville Road $100,000,000
Total Roadway Projects $1,210,000,000
Intersection Projects
Centreville Road/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 $2,276,000,000
All estimates are planning level estimates and are subject to adjustments.

Reston Transportation Funding Plan Overview
Strategy for providing financial resources to pay for transportation
improvements in the Reston Comprehensive Plan Amendment,
approved February 11, 2014.
• 40 Year Plan
• Identification of funding sources and cost allocation
• Project priorities
• Cash flow
8

Coordination with the Reston Network
Advisory Group
Mission Statement: Following the adoption of the Reston Master Plan Phase
1 update, the Reston Network Advisory Group was created by the Hunter Mill
District Supervisor to establish a forum for the Fairfax County Transportation
staff to receive input and feedback from residents and property
owners/developers on the Reston Network Analysis and associated plans…..1
• Advisory group members include landowners, residents, community
representatives, and members of the business community.
• Advisory Group meetings are open to the public.
• Charge - Review potential strategies for funding Reston transportation
improvements.
• Charge - Provide feedback to staff on potential funding plan scenarios.
9
1. Full mission statement can be found at: http://www.fairfaxcounty.gov/fcdot/restonnetworkanalysis/advisorygroup.htm

Shared Funding Solution
• Public and private investment in Reston is necessary to ensure Reston’s
future success.
10
Reston
Public
Investment
Private
Investment

• Public funding means revenues generated from County-wide tax
sources that are being applied to the Reston Transportation Funding
Plan; includes money from the following sources:
– Federal grants and programs
– State grants and programs
– Regional revenues
– Local revenues
11

• Private funding means revenues generated from sources
specifically from Reston to fund projects in Reston; includes money
or contributions from the following sources:
– Proffers from developers
– Contributions to a Road Fund (per square foot/per dwelling unit)
– In-kind Contributions, such as actual construction of improvements
– Tax Districts/Service Districts (local revenues that will be
counted toward “private” contributions)
– Recommendations from the Advisory Group
12

Public Revenue Sources
Federal
• Formula Funding
• Discretionary Grants
State
• HB2 - Statewide High Priority
Projects, Construction District
Grant Programs
• Revenue Sharing
Local/Regional
• Commercial and Industrial
(C&I) Taxes
• General Obligation Bonds
HB2313
• NVTA 30% Local Funds
• NVTA 70% Regional Funds
13

Public Revenue Sources
• Federal, State and Regional funds can be difficult to predict
• Competitive process: federal discretionary grants, state HB2 funds,
and NVTA 70% Regional Funds
• Each source has specific requirements and restrictions
• Cash match may be required for certain funds
• Public revenues are distributed to projects County-wide
• Most of the public sources have already been committed to projects
in the Board’s Six Year Transportation Project Priorities (TPP) for
FY2015-FY2020
• Beyond FY2020, there’s flexibility in how public sources of
transportation revenues are applied.
14

Potential Private Revenue Sources
Proffers
Voluntary commitment by landowners/developers to perform an act or
to donate money, land, services or products to address/offset impact(s)
arising from their proposed rezoning
• Cash Proffer: Money voluntarily agreed to in writing signed by the
owner of property subject to rezoning, submitted as part of a
rezoning application.
• In-kind Contributions: Actual construction of improvements.
15

Service District
Ad valorem tax on all properties within a defined geographic area to
fund specific service improvement needs for that area; established by
Board of Supervisors.
Transportation Tax District
Ad valorem tax on commercial and industrial properties within a defined
geographic area established by voluntary petition of landowners and
approved by the Board of Supervisors to fund transportation projects
for/related to that area.
16

Tax Increment Financing (TIF) – A funding mechanism that captures net new tax
revenues within a defined geographic area (TIF district) to fund public projects in the TIF
district to promote economic development or redevelopment.
• Define district, usually commercial, to declare a tax increment district, which will be developed for
higher and better use.
• Define a base year assessment. Tax revenue at the base year is “frozen” continuing to accrue to
the normal tax funds at those assessment levels.
• Additional tax revenue (tax increment) based upon increases in assessed values over and above
the base year assessment rate are allocated to a tax increment fund, and would be used to fund
identified improvements.
• Financing option – Property taxes are most commonly used to fund TIFs. TIF revenues are
usually pledged to support bond debt service (requires Community Development Authority
(CDA)). May be used as pay as you go, rather than to support debt.
• TIF does not directly change the Real Estate Tax rate.
17

18
Base Year Assessment (Existing Tax Base)
Revenues continue to accrue to normal tax funds.
Total
New Tax
Base
Tax Increment
To support public
infrastructure or
bond debt
service
Life of Tax Increment Financing District
AnnualTaxesGenerated
Frozen revenue for basic services
Basic TIF Model:
Future Tax Revenue – Baseline Tax Revenue = TIF Revenue
Using the basic TIF model, a TIF
district over the Reston TSAs may
generate up to $900k per 1% of
real-estate assessed value growth
on its first year.
Assessed Value
Growth Revenue
1% $ 900,000
2% $ 1,800,000
5% $ 4,500,000

Building the Funding Plan
19
Activity Completed Underway Future
Discussion with Reston Network and Funding Advisory Group
Projects and preliminary cost estimates for roadway,
intersection, and grid improvements
X
Potential revenue sources and funding mechanisms for
the plan
X
Division of public and private responsibility for plan costs X
Analysis of several funding scenarios X
Individual project prioritization (Network Analysis Study) X
Timing of funding needs X
Public comment X X X

Funding Allocation Plan – Funding Responsibility
Discussed with the Advisory Group various methods of allocating
costs to public/private revenues in the plan.
1. Tysons Cost Allocation Model Applied to Reston
2. Project Location – Outside or Inside Reston TSAs
3. Use - Through/Local Ratios
4. Location and Through/Local Ratios
5. Project Category
6. Regional vs. Local Significance
20

Reston Funding Plan
Allocation Framework
This cost split was chosen by staff
as basis for discussion of funding
scenarios. Staff is still seeking
comments on this proposal.
In this example, public and private
revenues will share costs,
approximately equally.
Reston Roadway projects would be
paid for with public revenues.
Most Intersections and the Grid
would be paid for with private
revenues.
21
Please note that the information provided in this presentation is not final and is for discussion purposes only.
Option 5: Project Category
Project Estimate Allocation ($)
Reston Roadways $1,210,000,000
Public Share 100% $1,210,000,000
Private Share 0% $0
Reston Intersections $45,000,000
Public Share 0% $0
Private Share 100% $45,000,000
Grid $1,021,000,000
Public Share 0% $0
Private Share 100% $1,021,000,000
Total $2,276,000,000
Public Share 53% $1,210,000,000
Private Share 47% $1,066,000,000

Tentative Allocation of Grid of Streets
In-Kind vs. Road Fund (Cash Proffers)
22

Funding Scenario – Private Share
23
Private Share Estimate
$1.066B• Total private share
$0.711B• Less: in-kind contributions to grid
$0.355B• Net funding need from private share
Please note that the information provided in this presentation is not final and is for discussion purposes only.

Funding Scenario – Road Fund
• Dedicated account for cash proffers towards road
improvements, in a specific area that are not otherwise being
constructed by a developer.
• Contributions are based on rates for:
– residential dwelling units
– commercial square footage
24

Current Fund Area Rates - 2016
25
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

Road Fund Scenarios
• Through the working process with the Advisory Group, staff
originally proposed seven road fund scenarios.
• Five additional scenarios have been added based on feedback from
members of the Advisory Group.
• Certain road fund rate scenarios may have a related funding
shortfall that needs to be addressed through other revenue sources.
• Potential revenue sources for addressing a shortfall include but are
not limited to
– Service District
– Tax District
– Tax Increment Financing
– Recommendations from the Advisory Group
26

Original Scenarios 1-7
• Scenario 1: Tysons residential rates
• Scenario 2: Tysons commercial rates
• Scenario 3: Rates proportional to Reston development
• Scenario 4: Tysons rates and service district over Reston TSA
• Scenario 5: Tysons rates and tax district over Reston TSAs
• Scenario 6: Tysons Rates and Service District over Reston &TSAs
• Scenario 7: Tysons Rates and Service District over Sp. TD5
27

Scenario 8-9
• Scenario 8-9 were developed from the Advisory Group’s request to
evaluate land values between Reston and Tysons
– Scenario 8: General adjustment from Tysons rates, -11%
– Scenario 9: Specific adjustments from Tysons rates, +15%, -19%
28
Comparison – Reston TSAs to Tysons Assessed Values
Reston 2015 Tysons 2015 Dollar Percent
Residential Value/DU $ 260,129 $ 220,362 $ 39,766 15%
Commercial Value/Sqft $ 239 $ 284 $ -45 -19%
Residential Value/Sqft $ 221 $ 188 $ 32 15%
Average Sqft* $ 235 $ 261 $ -26 -11%
*Assessed value for a given sq. ft. regardless of zoning

29
*These are average annual rates that do not reflect actual cash flow needs.
These scenarios have been proposed by staff or by recommendations by the advisory group and are all based in some type of applicable logic. Different rate
scenarios could apply in the future. Please note that the information provided in this presentation is not final and is for discussion purposes only.
Road Fund Rate Scenarios
Contribution Rates and Other Funding Needed
Residential/
DU
Commercial/
SF
Other
Funding
($M)
Tax District
Rate*
Service
District
Rate*
Growth
required for
TIF*
Scenario 1: Tysons residential rates $2,571 $18.70 N/A N/A N/A N/A
Scenario 2: Tysons commercial rates $4,759 $12.63 N/A N/A N/A N/A
Scenario 3: Rates proportional to Reston
development
$7,159 $5.97 N/A N/A N/A N/A
Scenario 4: Tysons rates and service district over
Reston TSA
$2,571 $12.63 $83.43 $0.03 $0.015 ~2.0%
Scenario 5: Tysons rates and tax district over
Reston TSAs
$2,571 $12.63 $83.43 $0.03 $0.015 ~2.0%
Scenario 6: Tysons Rates and Service District
over Reston &TSAs
$2,571 $12.63 $82.60 $0.03 $0.015 ~2.0%
Scenario 7: Tysons Rates and Service District
over Sp. TD5
$2,571 $12.63 $75.92 $0.03 $0.015 ~2.0%
Scenario 8: General adjustment from Tysons
rates, -11%
$2,288 $11.24 $111.20 $0.035 $0.02 ~3.0%
Scenario 9: Specific adjustments from Tysons
rates, +15%, -19%
$2,957 $10.23 $85.22 $0.03 $0.015 ~2.5%

Feedback on…
• Do any of these scenarios work?
• What features do you like? What features don’t you like?
• Are you comfortable with a road fund at an appropriate rate?
• What other options should staff be considering?
30

Next Steps
• Seeking public/stakeholder feedback and analyze
comments
• Advisory group feedback and regular advisory group meetings
throughout the process.
• Development of a draft staff recommendation for the Reston
Transportation Funding Plan
• Board Transportation Committee (BTC) meeting, Fall.
• Preparation of final recommendations.
• Board of Supervisors approval by end of 2016.
31

Comments/Questions/Discussion
32

Reston Transportation Funding Plan: July 15, 2016

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