Presentation on theme: "1 The Northern Virginia Transportation Authority Implementation of HB 3202 July 12, 2007."— Presentation transcript:
1 The Northern Virginia Transportation Authority Implementation of HB 3202 July 12, 2007
2 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
3 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.
4 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.
5 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.
6 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.
7 Authorized Taxes & Fees Tax/Fee AuthorizedRate Grantors/Congestion Relief fee40¢/$100 valuation Motor Vehicle Rental Tax2% of rental rate Transient Occupancy Tax2% of room rate Safety Inspection Fee$10/year Sales Tax on Auto Repairs5% on labor Annual Regional Registration Fee$10/year Initial Vehicle Registration Fee1% of value
8 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. Authorized Taxes & Fees
9 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.
10 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.
11 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.
12 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.
13 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
14 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.
15 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.
17 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
18 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
19 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
20 July 12 th 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.
21 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.
22 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).
23 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.