Transcript Slide 1

The Northern Virginia Transportation
Authority Implementation of HB 3202
July 12, 2007
1
NVTA
The Northern Virginia Transportation
Authority (NVTA)
• Created by the Virginia General Assembly on July 1, 2002
• The Authority is charged with:
– Developing a regional transportation plan;
– Develop regional priorities and policies to improve air
quality; and
– Serving as an advocate for the transportation needs
of Northern Virginia
2
• Update to NoVA long-range transportation plan.
• Approved by NVTA on September 14, 2006.
• Endorsed by all nine of its member jurisdictions.
Some of the key study findings include:
• Even with CLRP investments travel conditions worsen.
• TransAction 2030 identifies $16.6 billion in improvements
to road and transit network, over 25 years.
• Even with this investment, highway mileage operating with
one hour or more of stop-and-go (congested) conditions
under the 2030 CLRP network would be reduced by only
two-thirds.
3
Conclusions from TransAction 2030:
• NoVa’s elected leadership reached consensus on
investment priorities based on the approved set of
evaluation criteria.
• The solution for NoVa’s congestion problems needs to
be multimodal.
• NoVa needs a minimum of $700 M a year (in 2005
dollars) in additional funding beyond current
allocations, for the next 23 years, to implement the
TransAction 2030 Plan.
4
HB 3202 Overview
• General Assembly approved HB 3202 on April 4, 2007.
• Bill authorizes Northern Virginia to collect seven taxes
and fees to be used for transportation purposes.
• If NVTA adopts all of the taxes and fees, could raise
more than $300 million annually for transportation.
• Overall, funds must be distributed to projects and
services benefiting the localities proportionally,
based on where the funds were raised.
5
HB 3202 Overview Con’t
• 40% of funding goes directly to locality in which funds
are raised to be spent on urban, secondary and transit
systems or projects in TransAction 2030 at the locality’s
discretion.
• Remaining 60% of funding to NVTA for:
• debt service on any bonds issued;
• $50 M per year for Metro capital expenses;
• $25 M per year for VRE capital and operating
expenses;
• Regional transportation projects.
6
Authorized Taxes & Fees
Tax/Fee Authorized
Rate
•
Grantor’s/Congestion Relief fee
40¢/$100 valuation
•
Motor Vehicle Rental Tax
2% of rental rate
•
Transient Occupancy Tax
2% of room rate
•
Safety Inspection Fee
$10/year
•
Sales Tax on Auto Repairs
5% on labor
•
Annual Regional Registration Fee
$10/year
•
Initial Vehicle Registration Fee
1% of value
7
Authorized Taxes & Fees
Grantor’s Tax (Congestion Relief Fee)
• Description: Tax applied to the sale price of property in the NVTA
region. Tax is paid by the seller.
• Rate: 40¢/$100 valuation
– Example: On the sale of a $400,000 home, the tax is $1,600.
• Estimated Funding: $171 million annually
• Collection: Clerk of Courts. Same as existing tax. Specified in law.
8
Authorized Taxes & Fees
Motor Vehicle Rental Tax
• Description: Tax applied to the rate of rental cars in the NVTA
region.
• Rate: 2% of total rental rate
– Example: On a $39.99 rental, the tax is $0.80
• Estimated Funding: $9 million annually
• Collection: By rental car company and transmitted to Department
of Motor Vehicles. Same as existing tax. Specified in law.
9
Authorized Taxes & Fees
Transient Occupancy Tax
• Description: Tax applied to the rental of hotel rooms in the NVTA
region.
• Rate: 2% of total rental rate
– Example: On a $99 room, the tax is $2.00
• Estimated Funding: $25.3 million annually
• Collection: Proposed: By lodging establishment. Transmitted to
localities; then to NVTA. Same as existing tax.
10
Authorized Taxes & Fees
Safety Inspection Fee
• Description: Fee for annual state vehicle safety
inspections conducted in the NVTA region.
• Rate: $10 per year
• Estimated Funding: $16.2 million annually
• Collection: Proposed: Collection by service station.
Transmitted to State Police or directly to NVTA.
11
Authorized Taxes & Fees
Sales Tax on Auto Repairs
• Description: Sales and Use tax on the labor associated with
automotive repairs.
• Rate: 5% of labor charges.
– Example: On $200 in labor charges, the tax is $10
• Estimated Funding: $33.2 million annually
• Collection: Service station. Transmitted to Department of Taxation.
Specified in law.
12
Authorized Taxes & Fees
Regional Registration Fee
• Description: An annual fee for the registration of
vehicles within the NVTA region.
• Rate: $10 per year
• Estimated Funding: $17 million annually
• Collection: Proposed: Department of Motor Vehicles
13
Authorized Taxes & Fees
Initial Vehicle Registration Fee
• Description: A one-time registration fee on the purchase of
vehicles, based on the purchase price, or vehicles registered in
Northern Virginia for the first time.
• Rate: 1% of total vehicle value.
– Example: On a $20,000 vehicle, the tax is $200.
• Estimated Funding: $64.6 million annually
• Collection: Proposed: New car purchase – dealer; move in from
other state – Department of Motor Vehicles; Move in from elsewhere
in Virginia – first contact, DMV or local government.
14
Project List Criteria
• A list of immediate, short-term project needs was
developed for an initial NVTA bond issuance.
• These projects are:
– Balanced across regions and modes.
– Consistent with the region’s transportation plans, including
Transaction 2030.
– Ready to Go
– Short-term priorities of the jurisdictions
• They improve congestion, safety, and/or transit capacity
or service.
• Most are included on NVTA’s list of short-term priorities
for the 2007 General Assembly session.
15
Project List Allocations
Transit Projects
$ 39,208,820
Multi-modal Projects
$
Highway Projects
$ 56,545,180
TOTAL
$102,000,000
6,246,000
16
Transit Projects
Project Title
Funding
•
The Crystal City/Potomac Yard Transit Improvements
(Arlington County and Alexandria)
$11,458,820
•
Richmond Highway Public Transportation Initiative
$10,000,000
•
Purcellville Park-and-Ride Lot
$ 1,400,000
•
Route 15 Park-and-Ride Lot
$ 1,000,000
•
Escalator Canopy at Huntington Metrorail Station
$ 2,000,000
•
Upgrade of station signage at 20 Virginia
Metrorail Stations
$ 6,100,000
•
Upgrade of platform at West Falls Church and Vienna
Metrorail Stations
$ 3,500,000
•
VRE Locomotives
$ 3,750,000
TOTAL
$39,208,820
17
Multi-modal Projects
Project Title
Funding
•
Wilson Boulevard improvements;
Oakland to Randolph (Phase II)
$ 2,000,000
•
Old Dominion Drive Multi-modal Improvements (Phases 2-5)
$ 1,500,000
•
Improvements at Chain Bridge Road (Route 123)
and Eaton Place
$ 2,500,000
•
Citywide sidewalk replacement and construction
(Falls Church)
$
TOTAL
$ 6,246,000
246,000
18
Highway Projects
Project Title
Funding
•
Intersection improvements at Lee Highway and Harrison Street
$
•
Fairfax County Parkway/Fair Lakes Parkway and
Monument Drive Interchange
$28,850,000
•
Pacific Boulevard between Nokes Boulevard and Severn Way
$ 2,600,000
•
Complete Battlefield Parkway between Route 621 and
New Bridge
$ 3,000,000
•
Intersection improvements at Loudoun County Parkway
and Evergreen Mills Road
$
•
Bull Run Post Office Road Improvements
$ 1,500,000
•
Traffic calming on Route 50 at Village of Aldie
$
•
Maple and Main Intersection Improvements (Purcellville)
$ 1,150,000
•
Route 28 Overpass in Manassas
$ 2,000,000
•
Intersection improvements on Manassas Drive in Manassas Park
$
•
Prince William Parkway widening from Hoadly Road
to Old Bridge Road
TOTAL
$14,900,000
800,000
230,000
915,180
350,000
$56,545,180 19
July 12th Actions
• NVTA is considering many actions today in order
to implement HB 3202.
• Some proposed actions to note:
 Adopting each of the taxes and fees;
 Approving short-term project list;
 Resolution of intent to issue debt for short-term
projects; and
 Authorizing the filing of a bond validation suit on July
13, 2007.
20
NVTA Initial Bond
• Full Name of Bonds: Transportation Facilities Revenue
Bonds, Series 2007
• Maximum Principal Amount: $130,000,000 (Current
projection is $129,975,000)
• Purpose: To fund issuance and financing costs, capitalized
interest, required reserves and short-term projects.
• Security: Pledge of "Pledgeable NVTA Revenues," which
means all revenues received by NVTA from the seven
regional taxes and fees, net of (i) costs of collection and NVTA
administrative costs, (ii) any revenues from toll facilities and
(iii) the 40% distribution to Member Localities. The Bonds
also may be secured by debt service reserve fund.
21
NVTA Initial Bond
• Maximum interest rate: True interest cost of 6.0%
(current projection is 5.8%).
• Maximum Term: 31 years (current projection is 25
years)
• Final Details: Before the Bonds are sold, NVTA must
adopt another resolution to approve the final terms and
conditions of the Bonds and method of their sale (that is,
competitive or negotiated).
22
Overlapping Debt
• NVTA’s debt should not negatively affect local credit
ratings
• NVTA debt will be not be classified as “overlapping debt”
by Moody’s
• Overlapping debt is not an inherently negative credit
factor & only one of a multitude of broad factors
considered during credit analysis.
• Historically, rating agencies have not downgraded credit
ratings due to overlapping debt.
23
Questions?
24