Reston Funding Plan-Funding Scenarios

County of Fairfax, Virginia
Reston Funding Plan
Reston Network Analysis & Funding Plan Advisory Group
June 20, 2016
Tom Biesiadny, Ray Johnson, Janet Nguyen, Ken Kanownik
Fairfax County Department of Transportation
Department of Transportation
1
Funding Scenarios

Outline
• Updates
– Meeting with Advisory Group Developers, June 6
– Project Costs
• Follow-up from April 11, 2016 meeting
– Tax Increment Financing (TIF)
– Herndon Projects Associated with Silver Line Phase II
– Herndon Metrorail Station Access Management Study
(HMSAMS)
– Reston Metrorail Access Group (RMAG)
– Land Value Analysis
• Discussion of funding scenarios
2

Estimate - Updates
3
Reston Funding Plan Projects
Updated Est. Previous Est. Change
Roadway Projects
DTR Crossing at Soapstone Overpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000 $160,000,000 $10,000,000
DTR Crossing at Rock Hill Road Overpass – Sunrise Valley Dr to Loudoun Co $80,000,000 $80,000,000 $0
DTR Town Center Parkway Underpass – Sunrise Valley Dr to Sunset Hills Rd $170,000,000 $170,000,000 $0
South Lakes Drive Overpass – Sunrise Valley Drive to Sunset Hills Rd $90,000,000 $90,000,000 $0
Route 286 - DTR to West Ox Widening $80,000,000 $80,000,000 $0
Route 286 at Sunrise Valley Drive (Interchange) $400,000,000 $400,000,000 $0
Reston Parkway Widening – South Lakes Drive to DTR $25,000,000 $25,000,000 $0
Fox Mill Road Widening – Reston Parkway to Monroe Street $60,000,000 $60,000,000 $0
West Ox Road Widening – Lawyers Road to Centreville Road $100,000,000 $100,000,000 $0
Monroe Street Widening – West Ox Road to Town of Herndon $80,000,000 $80,000,000 $0
Pinecrest Road Extension – South Lakes Dr to Sunrise Valley Dr $25,000,000 $25,000,000 $0
McNair Farms Drive Extension/Widening $10,000,000 $10,000,000 $0
Total Roadway Projects $1,290,000,000 $1,280,000,000 $10,000,000
Intersection Projects
Centreville Road at Sunrise Valley Drive $10,000,000 $10,000,000 $0
Centreville Road/DTR EB on/off Ramps $1,500,000 $1,500,000 $0
Reston Parkway/Sunrise Valley Drive $15,000,000 $15,000,000 $0
Reston Parkway/DTR WB on/off Ramps $5,000,000 $5,000,000 $0
Reston Parkway/Bluemont Way $4,000,000 $4,000,000 $0
Reston Parkway/New Dominion Parkway $5,000,000 $5,000,000 $0
Wiehle Avenue/DTR EB on/off Ramps $600,000 $600,000 $0
Hunter Mill Road/Sunset Hills Road $3,500,000 $3,500,000 $0
Total Intersection Projects $44,600,000 $44,600,000 $0
Grid Network* $1,021,000,000 $1,244,000,000 ($223,000,000)
Total $2,356,000,000 $2,569,000,000 ($213,000,000)
*Current grid network estimate is based on preliminary results from the Network Analysis Study and may be subject to adjustment.

Reston Funding Plan
Allocation Framework
This cost split was chosen by staff
as basis for 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.
4
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 $1,290,000,000
Public Share 100% $1,290,000,000
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 $2,356,000,000
Public Share 55% $1,290,000,000
Private Share 45% $1,066,000,000
Previously
$1.289
Previously
$1.244B
Previously
$1.280B
Public/Private share in
Tysons is 56/44
*Public revenues are those revenues allocated by the County for use on
Countywide projects.
*Private revenues are generated in Reston and used exclusively for Reston
projects. Includes: road fund, TIF, service and tax districts, etc.

Tentative Allocation of Grid of Streets
In-Kind vs. Road Fund (Cash Proffers)
5

Tax Increment Financing
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.
6

Tax Increment Financing (Mosaic District)
Fairfax County, VA – Merrifield Town Center (Mosaic District) – District created to
provide vehicle for financing public improvements to develop district in accordance with
existing zoning.
In the district:
• $30 million portion of public facilities would be funded through a 30 year bond
issued by the District whose debt service would be paid by a self-assessment.
• $42 million dollar portion of public facilities constructed on-site (road
improvements, parks, portion of parking garage) through a 22 year bond issued
through the District whose debt service is paid through incremental real estate
tax revenues (TIF). Liability for the debt service is secured by the District not the
County. As a result the bonds do not achieve a AA rating.
7

Tax Increment Financing (Mosaic District)
Mosaic District:
• 1,000 dwelling units, multi‐plex theatre,
125,000 square feet of office space,
500,000 square feet of other
non‐residential uses, 150 room hotel.
• Public Improvements: 2 parks,
realignment and widening of Eskridge
Road, widening of Lee Highway,
improvements to the Lee Highway/Gallows
Road intersection and, construction of a
grid of streets.
8

Tax Increment Financing
Mosaic district was uniquely fit for Tax Increment Financing:
• Fairfax County’s Office of Community Revitalization (OCR) and a consultant
team worked with one development to establish the Mosaic District CDA via
petition to the Board of Supervisors.
• The petition was evaluated against the County’s “16 Principles for Public
Investment in Support of Commercial Redevelopment” which was adopted
by the board in 2008 to advance revitalization and reinvestment
opportunities within the County.
• Evaluation determined that the project, to turn the area into the town center
of Merrifield, would not occur but for the use of TIF to support funding a
portion of public facilities through bond financing.
9

Basic TIF Model
10
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

Baseline Growth TIF Model
Baseline Growth TIF Model:
Future Tax Revenue – (Baseline Tax Revenue x Growth Factor) = TIF Revenue
11

TIF Diversion Model
TIF Diversion Model:
(Future Tax Revenue –Baseline Tax Revenue) x Diversion Factor = TIF Revenue (This
method can be a set dollar amount or a percentage of revenue)
12

Herndon Metro
Planning
Metro related projects to be funding
by the Town of Herndon.
Total of all projects is $13,947,400.
From Herndon Metro Station Area Plan:
http://www.herndon-
va.gov/departments/community-
development/planning-policy/metrorail-
planning.
13

Herndon Metrorail
Stations Access
Management
(HMSAMS) Study
Projects
Project Location Project Scope
Sunrise Valley Drive/Monroe Street Improve signalized crosswalks.
Van Buren Street/Worldgate Drive Add signalized crosswalk.
Herndon Parkway/Herndon Metro
Entrance North
Add mid-block signalized crosswalk.
Dulles Toll Road/Monroe Street Pedestrian/Bicycle Bridge. Fund Feasibility/Cost Estimate
Study.
Innovation Center to Arrowbrook Complete walkway with lighting.
Dulles Toll Road/Centreville Road Add lighting under Dulles Toll Rd. Add signalized crosswalk
at north ramps.
Herndon Parkway from W&OD Trail to
Fairbrook Drive
Improve access ramp at W&OD. Widen sidewalk to shared
use path. Funding for Feasibility/Cost Estimate Study.
Chandon Park to Worldgate Drive Dulles Glen Apartments to Worldgate Dr. shared use path
and lighting.
Coppermine Crossing to Merrybrook Improve FCPA fair-weather crossing to pedestrian bridge.
Innovation Avenue/Rock Hill Road Add shared use path and lighting.
Van Buren Street from W&OD to Monroe
St Bridge
Reconstruct w/ on-road bike lanes, sidewalk(s), drainage,
urban. Funding for feasibility/cost estimate study.
Monroe Street from Dulles Toll Road to
Monroe Manor Drive Missing Links
Shared use path Dulles Toll Rd. to East Lake Dr., Fox Mill Rd.
to Sunrise Valley Dr., Monroe Manor Dr. to Dwight St.
Sunrise Valley Drive from Fairfax County
Parkway to Innovation Station
Reconstruct with on-road bike lanes. Reduce median width.
Restripe with narrow lane widths.
Innovation Station North Side
Neighborhood Access
Add Shared use path and lighting. Fund Feasibility/Cost
Estimate Study.
Bicycle and pedestrian facility
projects to improve access to
the future Herndon and
Innovation Center Metrorail
Station:
http://www.fairfaxcounty.gov/f
cdot/hmsams/
These projects are funded
separate from the Reston
Funding Plan, mostly with
public sources.
14

Reston Metrorail
Access Group (RMAG)
and Wiehle Ave/Reston
Pkwy Station Access
Management Study
Projects
Recommended station
access management and
traffic improvements at the
Wiehle-Reston East Metrorail
station.
More RMAG improvements
can also be found here:
http://www.fairfaxcounty.gov/f
cdot/silverline/restonimp.htm
These projects are funded
separate from the Reston
Funding Plan, mostly with
public sources.
15
Project Location Project Scope
Bluemont Way & Discovery Street/Explorer
Street/Library Street
Improve crosswalks, bike facilities.
Sunset Hills Road/Old Reston Avenue Add signalized crosswalks.
Explorer Street/New Dominion Parkway Improve crosswalk.
Sunrise Valley Drive from Reston Parkway to
Soapstone Drive Missing Links
Complete shared use path north side. Add signalized
crosswalk at Colts Neck Rd.
Sunrise Valley Drive/Edmund Halley Drive Add signalized crosswalks.
Sunset Hills Road/Discovery Street Pedestrian Bridge
Walkway Extended
Add signalized crosswalk.
Reston Parkway/Dulles Toll Road Westbound On-
Ramp
Add signalized crosswalk. Remove southbound free-
flow right turn.
Reston Parkway/Dulles Toll Road Eastbound Off-
Ramp and On-Ramp
Add signalized crosswalks. Remove northbound free-
flow right turn.
Dulles Toll Road Eastbound Off-Ramp/Fairfax County
Parkway Trail
Realign trail to barrier-separated on shoulder. Realign
trail crossing. Add signalized crosswalk.
Sunset Hills Road Eastbound Off-Ramp/Fairfax
County Pkwy Trail
Realign trail crossing. Add signalized crosswalk.
Bluemont Way from Discovery Street Pedestrian
Bridge Walkway to Reston Parkway
Add sidewalk south side.
Sunset Hills Road from Town Center Parkway to
Reston Town Center Station Entrance
Complete shared use path north side.
New Dominion Parkway from Reston Parkway to
Fairfax County Parkway
Reconstruct with on-road bike lanes. Reduce median
width. Restripe with narrow lane widths.
Town Center Parkway/W&OD Trail Add access ramp at W&OD trail west side.
Town Center Parkway from Sunset Hills Road to
Baron Cameron Avenue
Sunrise Valley Drive from Reston Parkway to Fairfax
County Parkway
Sunrise Valley Drive/Reston Association Entrance Add signalized crosswalks.
Reston Bikeshare Phase 2 Bikeshare Expansion for Phase 2 Silver Line Metrorail.

Land Value Analysis
16
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 Value/Sqft* $ 235 $ 261 $ -26 -11%
* Assessed value for a given sq. ft. regardless of zoning

Scenarios – April AG Meeting
17
Contribution Rates to meet $480M
Residential/DU Commercial/SF
Funding
Shortfall
Scenario 1: Tysons residential rates $2,571 $27.80 $0
Scenario 2: Tysons commercial rates $8,036 $12.63 $0
Scenario 3: Rates proportional to Reston
development $9,680 $8.07 $0
Scenario 4: Tysons rates and service district
over Reston TSA $2,571 $12.63 $208.43M
Scenario 5: Tysons rates and tax district over
Reston TSAs $2,571 $12.63 $208.43M
Scenario 6: Tysons Rates and Service District
over Reston &TSAs $2,571 $12.63 $206.01M
Scenario 7: Tysons Rates and Service District
over Sp. TD5 $2,571 $12.63 $190.9M

Private Contributions
18
Estimate of Private Contributions Needed – Updated from Previous AG Meeting
April June
Reston Grid Estimate Percent Estimate Percent
Grid estimate $1,244,000,000 100% $1,021,000,000 100%
Less: Expected in-kind contributions $809,000,000 65% $711,000,000 70%
Funding gap for Grid $435,000,000 35% $310,000,000 30%
Private Cash Contributions Needed (Rounded) Estimate Estimate
Funding gap for Grid $435,000,000 $310,000,000
Intersections $45,000,000 $45,000,000
Total other private contributions needed $480,000,000 $355,000,000
Add: In-kind contributions $809,000,000 $711,000,000
Total private share of entire plan $1,289,000,000 $1,066,000,000

New Funding Scenarios
New Scenario 6 and 7 were developed in response to analysis of land values in
Reston and Tysons.
19
• New Scenario 6: Makes a general adjustment of 11 percent to the combined Tysons
residential and commercial rates.
• New Scenario 7: Makes a specific adjustment of 15 percent to the combined Tysons
residential rate and -19 percent to the combined Tysons commercial rate.
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

New Funding Scenarios
20
New Scenario 6
$2,288 $11.24
Roughly Equivalent to combined Tysons
Rates (per DU and per Sqft)
$2,571 $12.63
New Scenario 7
$2,957 $10.23
Roughly Equivalent to combined Tysons
Rates (per DU and per Sqft)
$2,571 $12.63
New Scenario 6: Makes a general
adjustment of 11 percent to the
combined Tysons residential and
commercial rates and leaves a
funding shortfall of $111.20 million.
New Scenario 7: Makes a specific
adjustment of 15 percent to the
combined Tysons residential rate and
-19 percent to the combined Tysons
commercial rate and leaves a funding
shortfall of $85.22 million.

Scenarios - Update
21
Residential/DU Commercial/SF
Funding
Shortfall
Scenario 1: Tysons residential rates $2,571 $18.70 $0
Scenario 2: Tysons commercial rates $4,759 $12.63 $0
Scenario 3: Rates proportional to Reston
development $7,159 $5.97 $0
Scenario 4: Tysons rates and service district
over Reston TSA $2,571 $12.63 $83.43M
Scenario 5: Tysons rates and tax district over
Reston TSAs $2,571 $12.63 $83.43M
New Scenario 6: General adjustment from
Tysons rates $2,288 $11.24 $111.20
New Scenario 7: Specific adjustments from
Tysons rates $2,957 $10.23 $85.22

Funding Gap
The various funding gaps can potentially be funded through the following
mechanisms:
• Tax District: $0.03/$100 of assessed values for commercial and industrial
properties in Reston TSAs.*
• Service District: $0.015/$100 of assessed values for all properties in
Reston TSAs.* Service District Rate in Tysons FY17 is $0.05/$100
assessed value.
22
Residential/DU Commercial/SF Funding Shortfall
Scenario 4: Tysons rates and service district over Reston TSA $2,571 $12.63 $83.43M
Scenario 5: Tysons rates and tax district over Reston TSAs $2,571 $12.63 $83.43M
New Scenario 6: General adjustment from Tysons rates $2,288 $11.24 $111.20
New Scenario 7: Specific adjustments from Tysons rates $2,957 $10.23 $85.22
*These are average annual rates that do not reflect actual cash flow needs. New Scenario 6 would need an additional $0.005 added to each
rate to meet the shortfall.

Average Annual Cost to Property Owner
23
Assessed
Value
Service District Rate
$0.015 $0.020 $0.025 $0.030 $0.035
$300,000 $45.00 $60.00 $75.00 $90.00 $105.00
$400,000 $60.00 $80.00 $100.00 $120.00 $140.00
$500,000 $75.00 $100.00 $125.00 $150.00 $175.00
$600,000 $90.00 $120.00 $150.00 $180.00 $210.00
$700,000 $105.00 $140.00 $175.00 $210.00 $245.00
$800,000 $120.00 $160.00 $200.00 $240.00 $280.00
$900,000 $135.00 $180.00 $225.00 $270.00 $315.00

Reston Funding Plan Next Steps
• Seek feedback for cost allocation plan and funding scenarios.
• Public meeting 6/27.
• Advisory group feedback.
• Board Transportation Committee (BTC) meeting, July or Fall.
• Development of final recommendations.
• Board of Supervisors approval by end of 2016.
24

Advisory Group 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?
25

Comments/Questions/Discussion
26

Reston Funding Plan-Funding Scenarios

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