FY 2016 Budget – TCF & TIF

County Board Worksession

April 7, 2015

Investments in transportation infrastructure and services help the community meet its sustainability goals

R-B CORRIDOR 1970

R-B CORRIDOR TODAY

Achieving a Sustainable Community

2

Transit-Oriented Development

Arlington’s three primary transit

corridors include:

45 million sq. ft. of office

space*

42 million sq. ft. in Metrorail station

areas* with over 6 million sq. ft. of

supporting retail and services

* Includes the Pentagon @ 5 million sq. ft.

109,000 housing units

Over 43,700 in Metrorail station

areas and 17,000 units along the

Columbia Pike corridor

56% of all housing in established

transit corridors

Success in concentrating growth around transit corridors

3

• Residents– January 2015 estimate = 216,700

– Over 140,000 workers with 2/3rd working outside the County

– Lowest resident drive-alone commute rate in the region outside DC – 46% use non-SOV as primary commute mode

– Young demographic predominates – 51% of population age 20-34 vs. 8.9% 65 and over

• Employees– January 2015 estimate = 221,700 jobs

– 200,000+ jobs clustered around transit in Arlington’s high-density corridors

– 150,000+ workers commute into Arlington daily –over 40% take transit, walk or bike to work

– 33% of Arlington residents working in R-B corridor walk or bike to work, 26% use transit

• Visitors – 4 million plus visitors to Arlington National Cemetery

– Over 10,500 hotel rooms used as a base for visitors from outside the region

– Many daily visitors from adjacent jurisdictions

• Through travelers & commuters 4

Transportation System Users

Providing Travel Options• 1,094 lane-miles of streets and 19

miles of HOV lanes

• Over 5,400 on-street metered parking

spaces

• 12 miles of Metrorail and 11 stations

• VRE commuter rail

• Extensive regional (23 Metrobus

routes) and local bus service (15

ART routes)

• Expanding car-share program with

nearly 90 cars

• Growing Bikeshare program with 80

stations – and over 20 more funded

• 50 miles of multi-use trails and 36

miles of on-street bike lanes and

sharrows

• Extensive and growing network of

sidewalks

County is investing to enhance

the quality of all travel options

5

Street Segment Street Type 1996 2011/2012% Change 1996-2012

Lee Hwy - Rosslyn EW 6-lane arterial 37,770 31,951 -15.4%

Wash. Blvd. - VA Square EW 4-lane arterial 20,469 17,500 -14.5%

Clarendon Blvd. EW 2-lane 1-way arterial 13,980 13,292 -5.0%

Wilson Blvd. - Clarendon EW 2-lane 1-way arterial 16,368 12,603 -23.0%

Arlington Blvd. EW 6-lane arterial 55,865 65,259 16.8%

Glebe Road - Ballston NS 6-lane arterial 35,230 31,000 -12.0%

Glebe Road - South of Columbia Pike

NS 4-lane arterial 29,000 27,000 -6.0%

George Mason Drive NS 4-lane arterial 20,002 20,518 2.3%

Jefferson Davis Hwy north of Glebe Road

NS 6-lane arterial 52,000 44,000 -15.4%

Smart growth has allowed Arlington to add

population while decreasing traffic volumes

Traffic on main arterials is down over 15-year period.

Traffic Volumes Declining

6

Vehicle Miles Declining

7

Safety is Improving

8

Demand Management is Effective

9

Residents Bike and Walk More

10

Arlington’s focus on developing high-quality transit is

moving more people without more traffic

Transit ridership grew significantly over 15-year period.

Transit Ridership Increasing

FY1996 Actual FY2013 Actual % Growth

Metrorail Arlington Stations 45,335,000 59,528,744 31.3%

Metrobus Arlington Routes 12,049,000 14,848,036 23.2%

VRE – Crystal City 567,000 1,102,076 94.4%

Arlington Transit (ART) 105,000 2,644,000 2,518%

Total Annual Ridership 58,076,000 78,122,856 34.5%

40% of Virginia’s total annual transit ridership is from

Arlington-related trips.

11

Local Bus Ridership Growing

674,806

926,5741,060,441

1,225,427

1,428,827

1,990,402

2,261,100

2,537,0002,644,000

2,833,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14

Fiscal Year

An

nu

al

Rid

ers

hip

Along with ridership, 2013 survey shows satisfaction with ART has

also hit new high – 90% of riders are satisfied or very satisfied

12

County Board-adopted policy guides our transportation

CIP investments.

Transportation policy history:

• MTP Goals and Summary, November 2007

• MTP Map, December 2007

• Bicycle Element, July 2008

• Pedestrian Element, July 2008

• Demand and System Management, December 2008

• Transit Element, June 2009

• Parking and Curb Management Element, November 2009

• Streets Element, February 2011

• 2014 Updates

– MTP Map

– Bicycle Element

Master Transportation Plan (MTP)

13

MTP General Policies

A. Integrate transportation

with land use

B. Support the design and

operation of Complete

Streets

C. Manage travel demand

and transportation

systems

14

Recent Accomplishments

15

Jefferson Davis

Rosslyn-Ballston County-wide

Transit

Complete Streets

Maintenance Capital

Investment Areas

Columbia Pike

Implementing the MTP and Supporting Land Use Plans

16

Accomplishments - Jefferson Davis

Projects:• Pentagon City (South Hayes Street)

• ART Operations and Administration Center

• Crystal Drive – Two-way Conversion

• 12th to 15th Street

• 23rd to 26th Street

• 12th St. South Stormwater Relocation/Upgrade

• Pentagon City Pedestrian Tunnel

Benefits:

• Improved pedestrian, bicycle, vehicle

and transit access and safety.

• Upgraded utility infrastructure

Ribbon cutting of Hawk Signal in Crystal City

Pentagon City (S. Hayes St.) Multimodal Improvements 17

Accomplishments – Columbia Pike

Projects:• South Wakefield Street to Four Mile Run Drive

• Bike Boulevard – Signage and markings

Benefits:

• Improved pedestrian & bicycle access and safety

• Upgraded utility infrastructure

Contract in place to complete the design for all remaining

sections of the Columbia Pike streets program.

South Wakefield to Four Mile Run

Town Center 18

Accomplishments – Rosslyn-Ballston

Projects:• Rosslyn Metro Station Access Improvements

• Clarendon Metro Plaza Improvements

• Clarendon Metro Station Bike Shelters

• Wilson Blvd. – N. Oakland to N. Randolph Street

• 13th Street N. – Hudson Street to Ivy Street

• Glebe Road Pedestrian Safety Improvements

Benefits:

• Improved Metrorail station access and

safety

• Improved pedestrian, bicycle, vehicle and

transit access and safety.

Rosslyn Metro Station Access Improvements

Clarendon Metro Plaza Improvements 19

Accomplishments – County-wide

Projects:• S. Joyce St. – 15th to 16th St., Phase I

• ART Bus Replacement and Expansion

• Transit IT and Security Technology

• Signals & ITS

VDOT / FHWA

• Court House Road-Arlington Boulevard Interchange

• Washington Boulevard-Columbia Pike Interchange

• South Joyce Street Improvements

Benefits:

Improved pedestrian, bicycle, vehicle

and transit access and safety.

Court House – Arlington Blvd. Interchange20

ITS Phase 3 Fiber ProjectBenefits:

• Provides increased capacity

and reliability by replacing

obsolete copper

communications

• Will connect more than 100

traffic signals to central

system, and will serve public

safety sites such as fire

stations

• Final phase of County’s

Transportation System

Management Communications

Upgrades

Under Construction– Fiber 3

Phases 1 & 2 were funded by state & federal sources21

Transportation Capital Fund (TCF)

22

Funding Sources - Overview

• The Transportation Capital Fund* is comprised of:

– Commercial & Industrial Tax

– HB 2313 Local (30%) funding

• Most projects have more than one funding source

– Combination of local, regional, state and federal sources

– Goal is to leverage external sources with local dollars

* HB 2313 Regional (70%) funding is not included in this presentation. That funding is allocated

through an external competitive process and is received on a reimbursement basis.

23

TCF-Commercial & Industrial Tax

• Authorized by General Assembly in 2007; adopted by County Board

in 2008, eligible uses of the Commercial & Industrial Tax include:

– New road construction, or expansion of existing roads that add capacity, service,

or access;

– New public transit construction, or expansion of existing transit that adds new

capacity, service, or access;

– Other capital costs related to new transportation projects and directly-related

operating costs; or

– The issuance costs and debt service on bonds to support capital costs above.

• Cannot be used to supplant existing commitments

• Has served as a basis for leveraging state and federal transportation

funds for major capital projects

• Vacancy rates impact revenues resulting in tax fluctuations

See Attachment #1, Tax Code of Virginia, code section 58.1-3221.3: Use & Level

of Effort Requirements for the Commercial & Industrial Real Estate Tax

24

TCF-HB 2313 Local (30%)

• In 2013, the Virginia General Assembly enacted transportation

funding legislation (House Bill 2313), which raises new transportation

revenues for Northern Virginia

– Includes the Regional Sales Tax, Grantor’s Tax, and Transient Occupancy Tax

• 30% of revenues will be returned to localities to be used for locally

selected transportation projects. Eligible uses include:

– Additional urban or secondary road construction;

– Other capital improvements that reduce congestion;

– Other transportation capital improvements included in NVTA’s long range

transportation plan;

– Public transportation purposes.

• $11.3M anticipated in FY16, included in the Transportation Capital

Fund, as required by legislation

See Attachment #2, HB 2313 - Excerpt of Funding Uses and Maintenance of

Effort Language

25

26

FY 2014 FY 2015 FY 2016

( in $ Millions) Actual Re-estimate Proposed

Opening Balance, July 1 85.3 105.5 102.5

Revenues - Tax Increment Area

Commercial Real Estate Revenues 25.7 24.9 24.7

NVTC State Aid Reimbursements 0.7

Other Revenues 0.8 1.7

NVTA Revenues – Local* 10.8 11.3 11.3

Total Revenues 38.0 37.9 36.0

Total Balance & Revenues 123.3 143.4 138.6

Expenses (17.7) (40.9) (47.9)

Closing Balance, June 30 105.5 102.5 90.7

As more transportation projects proceed through design and

into construction, fund expenditures are increasing

FY 2016 TCF Fund Balance

*The County began receiving NVTA (HB 2313) Local Revenue in FY 2014.

27

$6.9

$18.2

$9.8

$7.0

$17.6

$10.2

$-

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

FY11 FY12 FY13 FY14 FY15 FY16

Milli

on

s

TCF Leveraging of Federal and State Funds

The County continues to maximize its resources by using local funds

to successfully leverage federal and state resources.

External Funding Sources

28

Planned Investments

Investments - Jefferson Davis

Projects:Complete streets:

• Crystal Drive – 26th to 27th Streets

• Crystal Drive – US 1 to 27th Street

• Clark/Bell Streets – 12th to 18th Streets

• Clark/Bell Streets – Vicinity of 15th Street

• 18th Street – US 1 to Crystal Drive

• S. Eads Street – 15th to 23rd Streets

• 12th Street S. – S. Eads to S. Clark Streets

• Airport Viaduct Removal

• S. Clark Street – 20th to 27th Streets

• Viaduct Trail Access to National Airport

Transit:

• Crystal City-Pentagon City Transit Analysis

• Crystal City Potomac Yard Transitway

• Crystal City Station East Entrance

• Pentagon City Pedestrian Tunnel

Benefits:

• Improve pedestrian, bicycle,

vehicle and transit access and

safety

• Improve Metrorail station access

and safety

Crystal City Potomac Yard Transitway

Source: Crystal City

Sheraton

29

Investments – Columbia Pike

Projects:Complete Streets:

• Columbia Pike – S. Frederick St. to Jefferson St

• Columbia Pike – Oakland St. to S Wakefield St.

• Columbia Pike – S. Garfield St. to Quinn St.

• Columbia Pike – Orme St. to Joyce St.

• Bike Boulevards – Bicycle facility improvements

Transit:

• Columbia Pike Transit Analysis

• Columbia Pike – Transit Stations

Benefits:

• Improve pedestrian, bicycle, vehicle and

transit access and safetyColumbia Pike Complete Street cross-section

Columbia Pike Multimodal Street Improvements30

Investments – Rosslyn - Ballston

Projects:Complete Streets:

• R-B Corridor Accessibility

• Clarendon Circle Pedestrian Improvements

• Wilson Blvd. – N. Lincoln Street to 10th Street N.

Transit:

• Court House Metro Station Second Elevator

• Ballston Metro Station Multimodal Improvements

• Ballston-MU – Metro Station West Entrance

Benefits:

• Improve pedestrian, bicycle, vehicle

and transit access and safety

• Improve Metrorail station access and

safety

Proposed Court House Station Second Elevator

Proposed Ballston - MU Station West Entrance 31

Investments – County-wide

Projects/Programs:

Complete Streets:

Capital Bikeshare

East Falls Church Streets

Transit:

• ART Fleet New and Replacement Program

• ART Facilities

• Bus Stop & Shelter Program

• Transit ITS & Security Program

Traffic Engineering & Operations:

• Transportation Systems & Traffic Signals Program

• Fiber Network (phase 3)

• Parking Meters & Technology

Benefits:

Improve pedestrian, bicycle, vehicle and

transit access and safety.

ART Fleet

Capital Bikeshare32

Tax Increment Financing Area (TIF)

Crystal City, Potomac Yard, and Pentagon City

33

TIF – Background & Overview

The Tax Increment Financing fund was established in 2010 as

an implementation tool for the Crystal City Sector Plan

• The Plan establishes a vision and planning framework for the future of

Crystal City that will enable it to thrive following the BRAC decision

– The commercial vacancy rate in Crystal City was 23% at the end of 2014

• The TIF is an important means of paying for infrastructure

improvements that further the revitalization of Crystal City, Potomac

Yard and Pentagon City

• Projects funded via the TIF will provide critical transportation

infrastructure needed to support future development in these areas

• Redevelopment in these areas is expected to return to the County

additional tax revenues significantly above the TIF-supported

investments made in public infrastructure

34

Crystal City & Pentagon City Streets Projects

35

Crystal City & Pentagon City Transit Projects

36

Crystal City Streets Program

37

• The Crystal City Sector Plan calls for an

ambitious series of projects dedicated to

improving mobility and access for residents

and workers in Crystal City

• The existing system of disconnected highway-

style one-way streets will be converted into

multimodal two-way streets and connected at

grade level and enhance:

Pedestrian and bicyclist mobility and safety

Transit access and routing

Streetscapes, with modern lighting, new

textures and styles, and new stormwater

features

• The Crystal City Streets Program implements

the transportation network in the Sector Plan

created by staff, residents, and employers,

and adopted by the County Board in 2010

Crystal City Streets Program - Projects

38

South Clark Street Demolition Project• Removes redundant, underutilized roadway

• Allows connection of Crystal City street grid

Benefits:

• New open space and sidewalks between 18th

Street and 20th Street

• New right-of-way for development or transit

15th Street Extension project• Reconnects Crystal City grid of two-way

streets on S Clark Street and S Bell Street

Benefits:

• New protected bike lane along northbound

S Clark Street

• New sidewalks, landscaping, street lighting

along S Clark Street and 15th Street

Add picture

Crystal City Streets Program - Projects

39

Crystal Drive Two-Way, Phase 4• Two-way from 27th Street S to US 1

• Completes two-way Crystal Drive called for in

Crystal City Sector Plan

Benefits:

• New streetscape including sidewalks,

streetlighting, and stormwater retention

• Full connectivity and access for residents and

businesses on Crystal Drive

Route 233 Trail Access to National

Airport• Construct pedestrian connections from Crystal

City and Aurora Highlands neighborhoods

directly to National Airport

Benefits:

• Creates safe, accessible pedestrian route

along Route 233 Viaduct

Crystal City Streets Program - Projects

40

23rd Street South – Crystal Drive to

South Eads Street• Re-aligns 23rd Street S to create additional

development space as outlined in Crystal City

Sector Plan

• Shrinks intersection of 23rd St S with US 1 and

S Clark Street to increase pedestrian safety

Benefits:

• New streetscape including sidewalks,

streetlighting, and stormwater retention

South Clark Street, 20th to 27th

Two-Way Conversion &

Pedestrian/Bike Improvements• Completes the two-way street grid called for

in the Crystal City Sector Plan

• Provides new connectivity for residents and

businesses on S Clark Street

Benefits:

• Provides safe, protected northbound bicycle

route

Army Navy Drive Complete Street

• This complete street project will make

room for ¾-mile two-way dedicated

bicycle facility, dedicated transit lanes &

station, and improved pedestrian

facilities within existing ROW.

• FY 2016 activity: Traffic study & design;

construction to start in FY 2018.

• Leverages external (federal) funding

Existing Condition

Cycletrack in New York City 41

Crystal City Multimodal Center

Project details:• New bus bays to accommodate commuter

buses and hotel and employer shuttles

near the Metrorail station

• New concrete pavement under Route 1

bridge to handle increased bus traffic

• Sidewalk improvements and upgraded

lighting under the bridge

• Bell Street between 15th and 18th streets

converted to two-way traffic

42

Benefits:

• Enhancing access and

connectivity in the

neighborhood

• Improving pedestrian and

driver safety

43

FY 2014 FY 2015 FY 2016

( in $ Millions) Actual Re-estimate Proposed

Opening Balance, July 1 4.2 6.8 6.3

Revenues 3.0 3.0 3.1

Total Balance & Revenues 7.2 9.8 9.4

Expenses (0.4) (3.5) (3.9)

Closing Balance, June 30 6.8 6.3 5.5

• Revenues anticipated to decrease by $0.1M from FY 2014 to 2016

• Expenditures anticipated to increase by $3.5M from FY 2014 to 2016

FY 2016 TIF Fund Balance

The FY15-24 CIP includes $58.6 million for the Crystal City Streets program.

44

New Proposals

Set Aside Streetcar Funds

45

* Funds will be held in reserve for the yet-to-be-determined transit alternative for

Columbia Pike and Crystal City-Pentagon City.

** Funds will be used for the Transit Development Plan, Pentagon City Transit

Facilities Development Work, ART Bus Service Enhancements (beyond what was

included in the FY16 Proposed Budget), and other Transportation funding needs

that arise before the next CIP is adopted in July 2017 (contingency).

Estimated FY15 carryover funds + FY16 funding from the CIP

for the Streetcar Program

Sources Millions

TIF $1.3

TCF-C&I $33.3

TCF-HB 2313 Local $11.0

Total $45.6

Proposed Uses Millions

Transit Alternative Reserve* $30.4

Near-term Needs** $15.2

Total $45.6

ART Service Enhancements

• Service enhancements to 5 Arlington Transit (ART) routes

beyond additional service in Proposed FY 2016 budget

– Includes additional buses to relieve overcrowding and improve

on-time performance, extended service hours on weekends

and new weekend service on two routes

• ART 41 (Columbia Pike/Ballston/Courthouse)

• ART 42 (Ballston/Columbia Pike/Pentagon)

• ART 43 (Crystal City/Rosslyn/Courthouse)

• ART 45 (Columbia Pike/DHS/Sequoia/Rosslyn)

• ART 87 (Pentagon/Army Navy Drive/Shirlington)

– Implementation in July and December 2015

– Estimated FY 2016 net cost (after passenger fares) = $425,000

– Requires ongoing commitment of funding

46

ART Service Enhancements

47

Enhancements would

improve ART service in:

• Columbia Pike

• Pentagon City

• Crystal City

And to destinations in

the Rosslyn/Ballston

corridor and Shirlington

FY 2016 ART Service Proposals

48

Route Base Budget Enhancements Supplemental Enhancements Benefits

41 Weekend: Add 5th bus

afternoons

Weekday: Add 5th bus 10 a.m. to noon,

add 3rd bus after 7:30 p.m.

Saturday: Add 3rd bus after 7:30 p.m.

Sunday: Add 3rd bus early morning

• Relieve passenger crowding

• Improve on-time performance

42 Saturday: Improve frequencies

from 65 to 35 minutes, redirect

service from Pentagon to

Pentagon City Metro

Saturday: Extend night service 7:30 to

11 p.m.

Sunday: New service 7 a.m. to 7 p.m.

• Improve weekend service to

Columbia Pike, Ballston and

Pentagon City

43 Weekday: Add 3rd bus and

improve peak frequency from 20

to 13 minutes

Weekday: Additional bus trips to improve

service level

• Provide frequent connections

between Crystal City and

Rosslyn/Courthouse to relieve

overcrowding on Metrorail

Blue Line

45 Weekday: Add 4th bus during

peak periods, improve frequency

from 30 to 22 minutes

Weeknight: Improve frequency from 45

to 30 minutes

Saturday: New service 6 a.m. to 11 p.m.

Sunday: New service 7 a.m. to 7 p.m.

• Relieve peak overcrowding

• Provide weekend connections

between Columbia Pike and

Rosslyn/Courthouse

87 Weekday: Alternate 87/87A

service in PM peak and

discontinue PM peak 87X

service, extend evening service

until 11:30 p.m.

Saturday: Redirect service from

Pentagon to Pentagon City

Metro, extend evening service

until 11:30 p.m.

Sunday: New service 7 a.m. to 7 p.m. • Improve PM peak frequency

on southern half of route

• Extend service later Monday

to Saturday nights

• Connect Shirlington, Nauck,

Long Branch Creek, Arna

Valley and Pentagon City on

weekends

Questions?

49

Attachment 1 

Tax Code of Virginia  Code Section: 

 58.1‐3221.3 

Tax Type:  Property Tax Brief Description:  Classification of certain commercial and industrial real property and taxation of such 

property by certain localities included in the Northern Virginia Transportation Authority and the Hampton Roads Transportation Authority. 

Topics:  Classification; Local Power to Tax 

  § 58.1‐3221.3. (Effective until June 30, 2018) Classification of certain commercial and industrial real property and taxation of such property by certain localities.   A. Beginning January 1, 2008, and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities that are wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation. Such classification of real property shall exclude all residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.   B. In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, annually impose on all real property in the locality specially classified in subsection A: an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.125 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses; and (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, annually impose on all real property in the locality specially classified in subsection A: an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses. The authority granted in this subsection shall be subject to the following conditions:  

 (1) Upon appropriation, all revenues generated from the additional real property tax imposed shall be used to benefit the locality imposing the tax solely for (i) new road construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access, (ii) new public transit construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access, (iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or (iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions (i), (ii), or (iii); and   (2) The additional real property tax imposed shall be levied, administered, enforced, and collected in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of local taxes. In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as a separate class of real property for local taxation in accordance with the provisions of this section.  

 C. Beginning January 1, 2008, in lieu of the authority set forth in subsections A and B above and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation. Such classification of real property shall exclude all 

Attachment 1 

residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.   D. In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property located in special regional transportation tax districts specially classified in subsection C within such special regional transportation tax districts: an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.125 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses; and, (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property specially classified in subsection C within such special regional transportation tax districts: an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses. The authority granted in this subsection shall be subject to the following conditions:  

 (1) Notwithstanding any other provisions of law to the contrary, upon appropriation, all revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall be used for transportation purposes that benefit the special regional transportation tax district to which such revenue is attributable and solely for (i) new road construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access, (ii) new public transit construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access, (iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or (iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions (i), (ii), or (iii);   (2) Any local ordinance adopted in accordance with the provisions of subsection C and this subsection shall include the requirement that the additional real property taxes so authorized are to be imposed annually in accordance with applicable law;   (3) Any locality that imposes the additional real property taxes set forth in subsections A and B shall not be permitted to also impose the additional real property taxes set forth in subsection C and this subsection. In addition, any locality electing to impose the additional real property taxes on all real property located in such locality that is specially classified in subsections A and B must do so in the manner prescribed in subsections A and B and not by creation of a special transportation tax district as set forth in subsection C and this subsection. The creation of such special regional transportation tax districts shall not, however, affect the authority of a locality to establish tax districts pursuant to other provisions of law;   (4) The total revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall not be less than 85% of the revenues estimated to be generated when imposing the additional real property taxes in accordance with subsections A and B at the rate of $0.125 per $100 of assessed value in any locality embraced by the Northern Virginia Transportation Authority and at the rate of $0.10 per $100 of assessed value in any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code; and   (5) The additional real property taxes imposed pursuant to subsection C and this subsection shall be levied, administered, enforced, and collected, in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of all local taxes. In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as separate class of real property for local taxation in accordance with the provisions of this section.  (2007, c. 896; 2009, cc. 677, 822, 864, 871.)   

Attachment 1 

§ 58.1‐3221.3. (Effective June 30, 2018) Classification of certain commercial and industrial real property and taxation of such property by certain localities.   A. Beginning January 1, 2008, and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities that are wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation. Such classification of real property shall exclude all residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.  B. In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, annually impose on all real property in the locality specially classified in subsection A: an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.25 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses; and (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, annually impose on all real property in the locality specially classified in subsection A: an amount of real property tax, in addition to such amount otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses. The authority granted in this subsection shall be subject to the following conditions:  (1) Upon appropriation, all revenues generated from the additional real property tax imposed shall be used to benefit the locality imposing the tax solely for (i) new road construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access, (ii) new public transit construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access, (iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or (iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions (i), (ii), or (iii); and  (2) The additional real property tax imposed shall be levied, administered, enforced, and collected in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of local taxes. In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as a separate class of real property for local taxation in accordance with the provisions of this section.  C. Beginning January 1, 2008, in lieu of the authority set forth in subsections A and B above and solely for the purposes of imposing the tax authorized pursuant to this section, in the counties and cities wholly embraced by the Northern Virginia Transportation Authority and the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code, all real property used for or zoned to permit commercial or industrial uses is hereby declared to be a separate class of real property for local taxation. Such classification of real property shall exclude all residential uses and all multifamily residential uses, including but not limited to single family residential units, cooperatives, condominiums, townhouses, apartments, or homes in a subdivision when leased on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.  D. In addition to all other taxes and fees permitted by law, (i) the governing body of any locality embraced by the Northern Virginia Transportation Authority may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property located in special regional transportation tax districts specially classified in subsection C within such special regional transportation tax districts: an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.25 per $100 of assessed value as the governing body may, by ordinance, impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses; and, (ii) the governing body of any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code may, by ordinance, create within its boundaries, one or more special regional transportation tax districts and, thereafter, may, by ordinance, impose upon the real property specially classified in subsection C within such special regional transportation tax districts: an amount of real property tax, in addition to such amounts otherwise authorized by law, at a rate not to exceed $0.10 per $100 of assessed value as the governing body may, by ordinance, 

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impose upon the annual assessed value of all real property used for or zoned to permit commercial or industrial uses. The authority granted in this subsection shall be subject to the following conditions:  (1) Notwithstanding any other provisions of law to the contrary, upon appropriation, all revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall be used for transportation purposes that benefit the special regional transportation tax district to which such revenue is attributable and solely for (i) new road construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing roads that add new capacity, service, or access, (ii) new public transit construction and associated planning, design, and right‐of‐way acquisition, including new additions to, expansions, or extensions of existing public transit projects that add new capacity, service, or access, (iii) other capital costs related to new transportation projects that add new capacity, service, or access and the operating costs directly related to the foregoing, or (iv) the issuance costs and debt service on bonds that may be issued to support the capital costs permitted in subdivisions (i), (ii), or (iii);  (2) Any local ordinance adopted in accordance with the provisions of subsection C and this subsection shall include the requirement that the additional real property taxes so authorized are to be imposed annually in accordance with applicable law;  (3) Any locality that imposes the additional real property taxes set forth in subsections A and B shall not be permitted to also impose the additional real property taxes set forth in subsection C and this subsection. In addition, any locality electing to impose the additional real property taxes on all real property located in such locality that is specially classified in subsections A and B must do so in the manner prescribed in subsections A and B and not by creation of a special transportation tax district as set forth in subsection C and this subsection. The creation of such special regional transportation tax districts shall not, however, affect the authority of a locality to establish tax districts pursuant to other provisions of law;  (4) The total revenues generated from the additional real property taxes imposed in accordance with subsection C and this subsection shall not be less than 85% of the revenues estimated to be generated when imposing the additional real property taxes in accordance with subsections A and B at the rate of $0.25 per $100 of assessed value in any locality embraced by the Northern Virginia Transportation Authority and at the rate of $0.10 per $100 of assessed value in any locality wholly embraced by the Hampton Roads metropolitan planning area as of January 1, 2008, pursuant to § 134 of Title 23 of the United States Code; and  (5) The additional real property taxes imposed pursuant to subsection C and this subsection shall be levied, administered, enforced, and collected, in the same manner as set forth in Subtitle III of Title 58.1 for the levy, administration, enforcement, and collection of all local taxes. In addition, the local assessor shall separately assess and set forth upon the locality's land book the fair market value of that portion of property that is defined as separate class of real property for local taxation in accordance with the provisions of this section.  (2007, c. 896; 2009, cc. 677, 864, 871.) 

 

 

Attachment 2 

HB 2313 – Excerpt of Funding Uses and Maintenance of Effort Language (Effective July 1, 2013) 

 § 15.2‐4838.1. Use of certain revenues by the Authority. 

A. All moneys received by the Authority and the proceeds of bonds issued pursuant to § 15.2‐4839 shall be used by the Authority solely for transportation purposes benefiting those counties and cities that are embraced by the Authority. 

B. 1.. Except as provided in subdivision 2, 30 percent of the revenues received by the Authority under subsection A shall be distributed on a pro rata basis, with each locality's share being the total of such fee and taxes received by the Authority that are generated or attributable to the locality divided by the total of such fee and taxes received by the Authority. Of the revenues distributed pursuant to this subsection, as determined solely by the applicable locality, such revenues shall be used for additional urban or secondary road construction; for other capital improvements that reduce congestion; for other transportation capital improvements which have been approved by the most recent long range transportation plan adopted by the Authority; or for public transportation purposes. None of the revenue distributed by this subsection may be used to repay debt issued before July 1, 2013. Each locality shall create a separate, special fund in which all revenues received pursuant to this subsection and from the tax imposed pursuant to § 58.1‐3221.3 shall be deposited. Each locality shall provide annually to the Northern Virginia Transportation Authority sufficient documentation as required by the Authority showing that the funds distributed under this subsection were used as required by this subsection. 

2. If a locality has not deposited … an amount, from sources other than moneys received from the Authority, that is equivalent to the revenue that the locality would receive if it was imposing the maximum tax authorized by § 58.1‐3221.3, then the amount of revenue distributed to the locality pursuant to subdivision 1 shall be reduced by the difference between the amount of revenue that the locality would receive if it was imposing the maximum tax authorized by such section and the amount of revenue deposited into its special fund pursuant to clause (i) or (ii), as applicable. The amount of any such reduction in revenue shall be redistributed …  

C. 1. The remaining 70 percent of the revenues received by the Authority under subsection A, plus the amount of any revenue to be redistributed pursuant to subsection B, shall be used by the Authority solely to fund (i) transportation projects selected by the Authority that are contained in the regional transportation plan in accordance with § 15.2‐4830 and that have been rated in accordance with § 33.1‐13.03:1 or (ii) mass transit capital projects that increase capacity. For only those regional funds received in fiscal year 2014, the requirement for rating in accordance with § 33.1‐13.03:1 shall not apply. The Authority shall give priority to selecting projects that are expected to provide the greatest congestion reduction relative to the cost of the project and shall document this information for each project selected. Such projects selected by the Authority for funding shall be located (a) only in localities embraced by the Authority or (b) in adjacent localities but only to the extent that such extension is an insubstantial part of the project and is essential to the viability of the project within the localities embraced by the Authority. 

 Enactment Clause 10. That each county or city located in Planning District 8 or Planning District 23 as of January 1, 2013, shall expend or disburse for transportation purposes each year an amount that is at least equal to the average annual amount expended or disbursed for transportation purposes by the county or city, excluding bond proceeds or debt service payments and federal or state grants, between July 1, 2010, and June 30, 2013. Each county or city located in any other Planning District that becomes subject to the state taxes or fees imposed solely in Planning Districts pursuant to this act shall expend or disburse for 

Attachment 2 

transportation purposes each year an amount that is at least equal to the average annual amount expended or disbursed for transportation purposes by the county or city, excluding bond proceeds or debt service payments and federal or state grants, during the 36‐month period immediately prior to the effective date of the imposition of such state taxes or fees in the Planning District. In the event that any such county or city does not expend or disburse such an amount, that county or city shall not be the direct beneficiary of any of the revenues generated by the state taxes or fees imposed solely in Planning Districts pursuant to this act in the immediately succeeding year.  Enactment Clause 14. That the provisions of this act that generate additional revenue through state taxes or fees for transportation (i) throughout the Commonwealth and in Planning District 8 and Planning District 23 or (ii) in any other Planning District that becomes subject to the state taxes or fees imposed solely in Planning Districts pursuant to this act shall expire on December 31 of any year in which the General Assembly appropriates any of such additional revenues for any non‐transportation‐related purpose or transfers any of such additional revenues that are to be deposited into the Commonwealth Transportation Fund or any subfund thereof pursuant to general law for a non‐transportation‐related purpose. In the event a local government of any county or city wherein the additional taxes and fees are levied appropriates or allocates any of such additional revenues to a non‐transportation purpose, such locality shall not be the direct beneficiary of any of the revenues generated by the taxes or fees in the year immediately succeeding the year in which revenues where appropriated or allocated to a non‐transportation purpose.   

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HB 2313 Funding Fact Sheet:

How NVTA Transportation Dollars Are Spent It’s absolutely critical that all monies collected under HB 2313 are used appropriately by

the Authority and its member jurisdictions. If they are not, there are significant penalties.

For example:

1. The Authority’s regional funds will expire if the General Assembly appropriates or

transfers any of the HB 2313 revenues for any non-transportation-related purpose.

2. If an NVTA member jurisdiction (including qualifying Towns) uses its funds for

non-transportation purposes, then that locality will not receive any regional

transportation funding in the following year.

70% Regional Revenue Funds

These funds may be used on:

Regional projects that are included in TransAction 2040 (NVTA’s long term regional

transportation plan) or subsequent TransAction updates;

Projects that have also been evaluated by VDOT1 as part of the HB 599 Rating and

Evaluation Study; and

Mass transit capital projects that increase capacity. Beginning in FY2017 all mass

transit projects will be evaluated as part of the HB 599 process2.

OVER for more on Local Distribution Funding

1 The HB 599 rating and evaluation was not required for funds received in FY2014. 2 Per HB 1470, passed during the 2015 General Assembly session.

All of the taxes and fees collected under HB 2313 are sent to the

Northern Virginia Transportation Authority.

Once received by the Authority, those dollars are divided into one of two

categories: 70% Regional Revenue Funds and 30% Local Distribution Funds.

Attachment 3

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30% Local Distribution Funds

These funds will be distributed directly to individual NVTA member jurisdictions based on

the revenues collected in the jurisdiction and may be used as follows:

Urban or secondary road construction;

Capital improvements that reduce congestion;

Projects included in TransAction 2040 or other transportation capital improvements

which have been approved by the most recent long range transportation plan adopted

by the Authority; and

Public transportation purposes.

Like the Regional Revenue Funds, the 30% Local Distribution Funds have certain

requirements:

1. These funds must be deposited into a separate special fund for all local HB 2313

revenues received and each jurisdiction’s Commercial and Industrial (C&I) Tax

revenues (or the equivalent funding) must also be accounted for in this special fund.

2. Each locality shall, on an annual basis, provide documentation to the Authority

showing the funds were used as required by law.

3. Any administrative expenses incurred by the Authority will be taken from the 30%

(prior to distribution to the jurisdiction) unless another payment method is agreed

by the Authority (e.g. this includes each locality’s portion of administrative

expenses that are based on relative population).

4. These funds can be allocated towards appropriate project implementation costs such

as project managers, staff and other direct costs associated with the implementation

of the project.

o If a city or county fails to deposit the full amount of C&I tax or equivalent into

a separate fund for transportation, the Authority shall reduce its disbursement of

30% funding by the difference between the amounts the city or county deposited

compared to the amount it should have deposited.

o Each city and county is required to maintain its average expenditures for

transportation from FY2010 to FY2013, or lose its share of the 30% of the Local

Distribution Revenue HB 2313 funds for the fiscal year succeeding the year in

which it did not maintain its transportation expenditures.

Note: Each city and county is required to adopt the Commercial and Industrial (C&I)

Property Tax for transportation at a rate of $0.125 per $100 valuation or deposit

an equivalent amount into a separate fund for transportation improvements.

Attachment 3

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Towns (Dumfries, Herndon, Leesburg, Purcellville, Vienna)

The Authority and the counties embraced by the Authority shall work cooperatively

with the Towns (with a population greater than 3,500) for the purposes of

implementing HB 2313 and to ensure that such Towns receive their respective share

of revenue.

The three counties that have Towns located within their boundaries that meet the

population requirement (Fairfax, Loudoun and Prince William) distribute revenues

to the towns using the same approach.

The Code of Virginia requires that sales taxes be distributed to Towns based on their

percentage of school-age population. The same approach will be used by the

Authority to distribute the new Local Distribution Revenue to the Towns (through

the relevant counties).

HB 2313 Revenues Cannot Be Used For Maintenance

HB 2313 clearly states that these new revenues cannot be used for maintenance purposes.

Some examples of maintenance projects include, but are not limited to, the following:

Upgrading guardrail

Replacing signage

Upgrading signal systems

Repairing tunnel HVAC and

plumbing systems

Rehabilitating bridge decks

Paving roads

Pothole patching

Deck patching

Cleaning and repairing drainage

Flushing culverts, pipes and

bridge scuppers

Mowing

Litter and dead animal pickup

Snow removal

Incident response

Repairing damaged guardrail and

signs

Attachment 3

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NVTA Funding Fact Sheet:

What NVTA Can Fund With Regional Revenues

HB 2313 (2013): What NVTA can fund with Regional Transportation Revenues NVTA Regional Transportation Projects are funded with Regional Revenues (commonly referred to as 70%

revenue). In order to qualify for Regional Revenue Funding:

Projects must be in the NVTA’s Long Range Transportation Plan (TransAction 2040)

Highway Projects must be rated and evaluated as part of HB 599

Mass Transit projects must increase capacity

HB 599 (2012): Agency Coordination HB599 requires the Virginia Department of Transportation (VDOT) to coordinate with the Commonwealth

Transportation Board (CTB), the Department of Rail and Public Transportation and the Northern Virginia

Transportation Authority to evaluate all significant transportation projects. The legislation requires:

VDOT to rate and evaluate a minimum of 25 projects for congestion reduction and emergency

evacuation; and

Conduct the rating and evaluation process at least every 4 years.

NVTA Project Selection Process for FY2015-16 The Authority established a process (compliant with HB 2313) for selecting

projects for its FY2015-16 Two Year Program. This included:

A call for Projects in December, 2013

o 52 suggested projects were received from jurisdictions and

agencies, including:

33 highway projects; and

19 transit projects

A total of 37 highway projects were rated and evaluated as part of

the initial HB 599 process:

o 32 projects were selected and submitted by the NVTA (two projects were grouped together

and modeled as one project),

o 5 projects were selected and submitted by the CTB

o Ten of the 37 projects submitted were NOT in TransAction, making them ineligible for

NVTA funding.

When HB 2313 was passed by the General Assembly in 2013 it provided a source of revenue for transportation projects and specific requirements to the Northern Virginia Transportation Authority about the selection of projects for funding. The Authority strictly adheres to these requirements. Failure to do so can result in the loss of the entire transportation funding package for the region.

IMPORTANT FACT:

NVTA can ONLY consider projects for funding that were rated as part of HB 599 AND are in TransAction 2040.

Attachment 4

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NVTA Project Selection Criteria To help the Authority prioritize projects, the NVTA Approved 11 Project Selection Criteria. These 11

criteria were used to prioritize the projects submitted for consideration in the Draft FY2015-16 Two Year

Program, in addition to using the HB 599 ratings for highway projects.

It is important to note that in addition to giving priority to the projects that provide the greatest level of

congestion reduction relative to cost, the Authority’s enabling legislation ALSO requires that the Authority

consider the following performance-based criteria when selecting projects.

SB576, the Authority’s enabling legislation, states:

“The Authority shall be responsible for long-range transportation planning for regional

transportation projects in Northern Virginia. In carrying out this responsibility, the Authority shall,

on the basis of a regional consensus, whenever possible, set regional transportation policies and

priorities for regional transportation projects. The policies and priorities shall be guided by

performance-based criteria such as the ability to improve travel times, reduce delays, connect

regional activity centers, improve safety, improve air quality, and move the most people in the most

cost-effective manner.”

Next Steps The NVTA will hold the next call for projects for FY2017 in the latter half of calendar 2015.

HB 1470 (2015) – The General Assembly passed HB 1470 in 2015.

o Beginning July 1, 2016 (FY2017), this legislation requires that ALL projects (highway and

transit) requesting NVTA HB 2313 Regional Revenues be in TransAction AND undergo

VDOT’s HB 599 rating and evaluation process.

For more on the Northern Virginia Transportation Authority please visit:

www.thenovaauthority.org

IMPORTANT FACT:

Transit projects did not undergo the HB 599 process as part of the Draft FY2015-16 Two Year Program. However transit projects will undergo the HB 599 rating and evaluation process beginning in FY2017.

Attachment 4