Tysons Transportation Service District Rate Options
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Transcript of Tysons Transportation Service District Rate Options
Tysons Transportation Service District Rate Options
Tysons Transportation Service District Advisory Board
April 3, 2013 1
Recap March 18th Meeting
• Stable rates - Proposed to remain unchanged for much of the life of the tax district
• Modeled at $0.09 and $0.07
• Step rates - Proposed to start low and then increase annually to a longer term rate. Two models were provided:
• Modeled by starting at $0.04 and increasing annually by $0.01 to $0.09 and
• Modeled by starting at $0.04 and increasing annually by $0.01 to $0.07
• Both options included funding the $253 million requirements through Pay-Go and Bond Financing
2
Follow Up Request from March 18th Meeting – New Tax Rate Model
• Created new model in response to Advisory Board requests to:
• Model a closer relationship of revenue and expenditures
• Evaluate reduction in tax rate in later years
• Extend payoff period
• Illustrate relationship with Dulles Rail Phase 1 Tax District
• Conscious of 29 Cent Planning Cap
3
Modified Bell Curve Approach
4
Characteristics of Modified Bell Curve Approach
Model Results
• Payoff period finishes in 2048
• 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
5
Tax Rates for Bell Curve
6
$-
$0.01
$0.02
$0.03
$0.04
$0.05
$0.06
$0.07
$0.08
$0.09
$0.10
$0.11
$0.12
$0.13
$0.14
$0.15
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29
FY30
FY31
FY32
FY33
FY34
FY35
FY36
FY37
FY38
FY39
FY40
FY41
FY42
FY43
FY44
FY45
FY46
FY47
FY48
FY49
FY50
FY51
FY52
FY53
Annual Revenue Allocation for Bell Curve
7
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29
FY30
FY31
FY32
FY33
FY34
FY35
FY36
FY37
FY38
FY39
FY40
FY41
FY42
FY43
FY44
FY45
FY46
FY47
FY48
FY49
FY50
FY51
FY52
FY53
Net Bond Proceeds(Balanced)Annual Residual
Aggregate Debt Service
Tax Revenue Provided forPay-Go
Cumulative Dulles Rail Phase I & Bell Curve Tax Rates
8
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29
FY30
FY31
FY32
FY33
FY34
FY35
FY36
FY37
FY38
FY39
FY40
FY41
FY42
FY43
FY44
FY45
FY46
FY47
FY48
FY49
FY50
FY51
FY52
FY53
Summary of Tax Rate Models
Criteria 9 Stable 7 Stable 4 to 9 Step
4 to 7 Step
4 to 7 Bell Curve
Total Tax Revenue Needed*
$323.3m $336.4m $328.0m $349.5m $412.5m
Final Tax Year
2035 2040 2036 2041 2048
Maximum Cumulative Deficit
$3.8m $8.8m $12.9m $12.9m $10.2m
Number Years in Deficit
4 8 8 9 9
9
* Includes Pay-Go, Bond Debt Service, and use of reserves/early debt payments
Use of Tax Revenue (in millions)
9 Stable 7 Stable 4 to 9 Step
4 to 7 Step
4 to 7 Bell Curve
Pay-Go $88.5 $68.8 $76.7 $64.6 $68.6
Aggregate Debt Service
$88.3 $163.6 $105.7 $180.6 $238.2
Use of Residual Fund Balance
$146.5 $104 $145.6 $104.3 $105.7
Gross Tax Revenue
$323.3 $336.4 $328 $349.5 $412.5 10
FY 2014 Budget Calendar
• Public Hearings – FY 2014 Budget
• Tuesday April 9th begins at 6pm
• Wednesday April 10th begins at 3pm
• Thursday April 11th begins at 3pm
• Budget Markup - April 23, 2013
• Budget Adoption - April 30, 2013
• FY 2014 – July 1, 2013
• Adoption of a Service District Tax Rate for FY 2014 only has a ½ year rate collection impact
• July 2013 collections excluded, December 2013 included 11
Questions?
12