The Northern Virginia Transportation Authority Implementation of HB 3202

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The Northern Virginia Transportation Authority
Implementation of HB 3202 July 12, 2007
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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

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• 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.

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• Conclusions from TransAction 2030
• NoVas elected leadership reached consensus on
  investment priorities based on the approved set
  of evaluation criteria.
• The solution for NoVas 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.

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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.

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HB 3202 Overview Cont

• 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 localitys 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.

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Authorized Taxes Fees

• Tax/Fee Authorized Rate
• Grantors/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

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Authorized Taxes Fees

• Grantors 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.

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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.

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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.

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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.

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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.

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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

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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.

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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 regions 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 NVTAs list of short-term
  priorities for the 2007 General Assembly session.

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Project List Allocations

• Transit Projects 39,208,820
• Multi-modal Projects 6,246,000
• Highway Projects 56,545,180
• TOTAL 102,000,000

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Transit Projects

• Project Title Funding
• The Crystal City/Potomac Yard Transit
  Improvements 11,458,820 (Arlington County and
  Alexandria)
• 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
  6,100,000 Metrorail Stations
• Upgrade of platform at West Falls Church and
  Vienna 3,500,000 Metrorail Stations
• VRE Locomotives 3,750,000
• TOTAL 39,208,820

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Multi-modal Projects

• Project Title Funding
• Wilson Boulevard improvements 2,000,000
  Oakland to Randolph (Phase II)
• Old Dominion Drive Multi-modal Improvements
  (Phases 2-5) 1,500,000
• Improvements at Chain Bridge Road (Route 123)
  2,500,000 and Eaton Place
• Citywide sidewalk replacement and construction
  246,000 (Falls Church)
• TOTAL 6,246,000

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Highway Projects

• Project Title Funding
• Intersection improvements at Lee Highway and
  Harrison Street 800,000
• Fairfax County Parkway/Fair Lakes Parkway and
  28,850,000 Monument Drive Interchange
• Pacific Boulevard between Nokes Boulevard and
  Severn Way 2,600,000
• Complete Battlefield Parkway between Route 621
  and 3,000,000 New Bridge
• Intersection improvements at Loudoun County
  Parkway 230,000
  and Evergreen Mills Road
• Bull Run Post Office Road Improvements
  1,500,000
• Traffic calming on Route 50 at Village of Aldie
  915,180
• 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 350,000
• Prince William Parkway widening from Hoadly Road
  14,900,000 to Old Bridge
  Road
• TOTAL 56,545,180

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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.

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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.

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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).

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Overlapping Debt

• NVTAs debt should not negatively affect local
  credit ratings
• NVTA debt will be not be classified as
  overlapping debt by Moodys
• 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.

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• Questions?