Tysons Transportation Service District FY 2016 Tax Rate Discussion: March 19, 2015
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Tysons Transportation Service District FY 2016 Tax Rate Discussion: March 19, 2015
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Tysons Transportation Service District FY 2016 Tax Rate Discussion: March 19, 2015
- 2. Tysons 2 Today’s Presentation • Review this year’s timeline for a FY 2016 tax rate recommendation to the Board of Supervisors • Summary of FY 2015 Adopted Budget “Modified Bell Curve” (MBC) approach to address the service district’s obligation • Service district overview using January 1, 2015 (FY 2016) assessed values and 2014 assumptions for project costs and scheduling • Service district taxes collected to date • Tax rate options for FY 2016
- 3. Tysons 3 Spring 2015 Timeline/Recommendation Date Item February 17 County Executive’s FY 2016 proposed budget; service district rate proposed at $0.05 March 3 Board approved advertising a service district tax rate at $0.05, as part of the Tax Rate Resolution1 March 12 First meeting of the Tysons Transportation Service District Advisory Board (TTSDAB) March 19 Second meeting of the TTSDAB April 2 Last meeting of the TTSDAB Recommendation due for FY 2016 service district tax rate April 7‐9 Public Hearings on FY 2016 Budget and Tax Rates April 21 FY 2016 Budget Mark‐up April 28 Board Adoption of FY 2016 Budget and Service district tax rate is included as part of FY 2016 Budget Adoption 1. After advertisement, the Board can only adopt a rate equal to, or lower than the advertised rate.
- 4. Tysons 4 Recap of Last Year’s (FY 2015) Modified Bell Curve (MBC) Approach Characteristics Model Results • Payoff period finishes in 2048 • Rate ramps up in early years • Reduces tax rates in last years • Most years at $0.06 tax rate • Increases gross tax revenue contributions • When combined with Dulles Rail Phase I, does not exceed $0.29 planning cap • FY 2015 Advertised Budget included an increase from $0.04 to $0.05 • Advisory board recommended a rate of $0.04 for FY 2015 • Service district rate remained at $0.04 as part of the Fairfax County Board’s FY 2015 Adopted Budget Plan
- 8. Tysons 8 1. Equalization and growth. 2. Board advertised at $0.05. 3. As recommended by the Phase 1 Tax District Advisory Board to reduce from $0.21 to $0.19 for FY 2016 on 3/11/15. Confirmed by the Phase 1 Tax District Commission on 3/17/15. Subject to final approval by the Board of Supervisors via Budget Adoption. Changes From FY 2015 to FY 2016 Fiscal Year 2015 2016 Assessed Value $12,371,383,710 $12,834,223,566 AV Growth over prior year 3.5% 3.74%1 Tysons District Tax Rate Per $100 AV $0.04 $0.052 Dulles Rail Phase I Tax Rate Per $100 AV $0.21 $0.193 Combined Tax Rate Per $100 AV $0.25 $0.24 Cumulative Tax Rate Revenues Collected to Date ~$7.26M
- 9. Tysons 9 Key Statistics FY 2015 Adopted MBC Plan2 FY 2015 Adopted MBC Plan w/ updated AV (as of 1/1/15) 2 FY 2015 Adopted MBC Plan w/ updated AV (as of 1/1/15) 2 Total Tax Revenue Needed1 $406.2m $403.2m $404.9m Final Tax Year 2047 2047 2047 Maximum Cumulative Deficit $12.4m $12.1m $14.5m Years in Deficit 9 9 9 1. Includes finance charges 2. FY 2015 Adopted MBC Plan has a rate of $0.04 in FY 2015; assumes $0.05 in FY 2016 and $0.06 in FY 2017 5cents 4cents
- 11. Tysons 11 Residential Homeowner Annual Bill ‐ Change from FY 2015 to FY 2016 FY 2015 Assessed Value FY 2015 Tax Bill1 FY 2016 Assessed Value2 FY 2016 Tax Bill1 Change from FY 2015 to FY 2016 $300,000 $120 $313,890 $157 $37 $400,000 $160 $418,852 $209 $49 $500,000 $200 $523,150 $262 $62 $600,000 $240 $627,780 $314 $74 $700,000 $280 $732,410 $366 $86 $800,000 $320 $837,040 $419 $99 $900,000 $360 $941,670 $471 $111 $1,000,000 $400 $1,046,300 $523 $123 1. FY 2015 Adopted MBC Plan has a rate of $0.04 in FY 2015, assumes $0.05 in FY 2016 and $0.06 in FY 2017 2. Residential AV equalization growth of 4.63% from FY 2015 to FY 2016
- 12. Tysons 12 TysonsTysons • $2,362,312 – collected in FY 2014. • $4,900,819 – collected to date in FY 2015. • $7,263,131 – estimate of total cash collected through FY 2015. ($ 726,313) – less 10% for Debt Service Reserve1 (DSR). $6,536,818 – estimated cash available for projects at the end of FY 2015. No revenues expended to date. Service District Collections to Date [1] Cash funding DSR, instead of financing, provides for lower debt service payments.
- 13. Tysons 13 TysonsTysons Near‐term Uses of Available Service District Revenues Phase I Tysons‐Wide Roadway Projects *Staff proposes allocating available revenues to PE/Design for all projects below. Project ID Project Description Approx Cost of PE/Design Approx Cost of ROW/Utilities Approx Cost of Construction #1 Route 7 Widening (Route 123 to I‐495) $2,200,000 $7,700,000 $12,100,000 #11 Route 123 Widening (Old Courthouse Road to Route 7) $2,250,000 $7,500,000 $13,000,000 #10 Route 123 Widening (Route 7 to I‐495) $2,000,000 $32,500,000 $11,500,000
- 14. Tysons 14 Staff Recommendation and Notes on Service District Projections • Staff recommends a one cent increase from the FY 2015 tax rate of $0.04 to $0.05 in FY 2016 which is in‐line with MBC Plan • Although actual AV growth has been greater than projected, continued growth at that magnitude is not guaranteed • Two years of tax collections does not indicate a long‐term growth trend • Small increases to tax rate in early years protects against potential larger increases in future years • Rate increase in FY 2016 allows for projects to keep with schedule shown in the cash flow.
- 15. Tysons 15 April 2 Meeting • Address any requests for follow‐up information. • Continued discussion of FY 2016 service district rate. • Recommendation of FY 2016 service district rate, or decide tonight.