Reston Funding Plan: Rates/Contributions Discussion

County of Fairfax, Virginia
Reston Funding Plan
Reston Network Analysis & Funding Plan Advisory Group
April 11, 2016
Ray Johnson / Tom Biesiadny
Fairfax 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 Assumptions
Constant 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.
3

Plan Assumptions Continued
Transit 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.
4

Review: Tysons
Funding Plan
5
Tysons
Tysons-wide Outside $725,000,000
Public Share 90% $652,500,000
Private Share 10% $72,500,000
Tysons-wide Inside $482,000,000
Public Share 10% $48,200,000
Private Share 90% $433,800,000
Grid $865,000,000
Public Share 0% $0
Private Share 100% $865,000,000
Neighborhood Access Improvements $77,000,000
Public Share 100% $77,000,000
Private Share 0% $0
Transit $953,000,000
Public Share 100% $953,000,000
Private Share 0% $0
Total $3,102,000,000
Public Share 56% $1,730,700,000
Private Share 44% $1,371,300,000
Private Share
Tysons-Wide $506,000,000
Service District $253,000,000
Road Fund $253,000,000
Tysons Grid $865,000,000
In-kind Contributions $561,000,000
Road Fund $304,000,000

List of Improvements to be Funded
6
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.
7

Reston Funding Options1-3
8
Please note that the information provided in this presentation is not final and is for discussion purposes only.

Reston Funding Options 4-6
9
Staff proposes to use option 5, but is seeking comments on this proposal

Reston Funding Plan
Allocation Framework
Public 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.
10

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.
11

12
Reston Phase I Plan Amendment:
Conceptual Land Use

Private Share Calculations
Step 1: Contributions needed for grid network after in-kind contributions.
13
Reston Grid Estimate Percent
Grid 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 Estimate
Funding 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
14
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
15
Reston TSA Comprehensive Plan Development Potential
Land Use Type
2010 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 Only
1. 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.
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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.
17
Residential Commercial
Rate 2,571$ 27.80$
Revenues 98,057,940$ 381,942,060$
(%) of Need 20% 80%
Total Towards Plan % Plan Funded
480,000,000$ 100%
Residential rate roughly equivalent to Tysons rate
Private Funding Option 1

Private Funding
Option #2
Use Tysons commercial rates
(Tysons-wide and Tysons grid
combined) and determine Reston
residential rate to meet need.
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Rate 8,036$ 12.63$
Revenues 306,491,889$ 173,508,111$
(%) of Need 64% 36%
480,000,000$ 100%
Commercial rate roughly equivalent to Tysons rate

Private Funding
Option #3
Determine set of rates that match
proportion of total residential vs.
total commercial development in
Reston.
19
Rate 9,680$ 8.07$
Revenues 369,185,001$ 110,814,999$
(%) of Need 77% 23%
480,000,000$ 100%
Rates in Proportion to Development

Private Funding
Option #4
Use Tysons combined rates and fill
gap with a service district over
Reston TSA.
Board could enact.
20
Service District Rate $0.035
(average annual rate over 40 years)
Rate 2,571$ 12.63$
Revenues 98,057,940$ 173,508,111$
(%) of Need 20% 36%
Amount Towards Plan % Plan Funded
Fund Area 271,566,051$ 57%
Gap (208,433,949)$ 43%
Rates roughly equivalent to Tysons rates

Private Funding
Option #5
gap with a tax district over Reston
TSA (C&I Only).
Land owner petition required.
21
Tax District Rate $0.07
Rate 2,571$ 12.63$
Revenues 98,057,940$ 173,508,111$
(%) of Need 20% 36%
271,566,051$ 57%
Gap (208,433,949)$ 43%

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

Private Funding
Option #6
gap with a service district over
Reston and Reston TSAs.
Board could enact.
23
Rate 2,571$ 12.63$
Revenues 100,428,402$ 173,508,111$
(%) of Need 21% 36%
Amount Towards Plan% Plan Funded
Fund Area 273,936,513$ 57%
Gap (206,063,487.12)$ 43%

24
Option 6 - service district (all properties)

Private Funding
Option #7
Use Tysons combined and fill gap
with a service district over Special
Tax District 5.
Board could enact
25
Rate 2,571$ 12.63$
Revenues 104,796,531$ 184,274,251$
(%) of Need 22% 38%
Amount Towards Plan% Plan Funded
Fund Area 289,070,782$ 60%
Gap (190,929,217.74)$ 40%

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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:
27
Rate is average annual rate over 40 years.
Assessed Area Rate
Option 4 Reston TSA $0.035
Option 5 Reston TSA C&I only $0.070
Option 6 Reston Study Area $0.025
Option 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.
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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
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Assessed
Value
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
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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 Contributions
Reston 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.
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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
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Comments/Questions/Discussion
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Reston Funding Plan: Rates/Contributions Discussion

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