Department of Environmental Services

Transcription

1 Department of Environmental Services FY 2019 PROPOSED BUDGET HIGHLIGHTS Crystal City, Potomac Yard and Pentagon City Tax Increment Financing (TIF) & Transportation Capital Fund (TCF) County Board Work Session Thursday, April 5, 2018

2 Tax Increment Financing (TIF) TIF fund pays for infrastructure improvements that further revitalization of Crystal City, Potomac Yard and Pentagon City. Established in 2010 as an implementation tool for the Crystal City Sector Plan. Projects funded via the TIF provide critical transportation and open space infrastructure needed to support future redevelopment. 1

3 TIF-area Projects Boundary Channel Drive Interchange Improvements In Design Army Navy Drive Complete Street In Design Transitway Extension to Pentagon City In Design Long Bridge Drive - Phase 2 Construction Removal of Elevated Clark/Bell Streets Construction 2

4 Summary of Proposed Budget Changes - TIF TCF FY 2018 Adopted FY 2019 Proposed Change % Change Expenses $7,260,000 $13,415,000 +$6,155, % Revenue $6,304,880 $4,718,020 -$1,586, % Staff 6.5 FTEs 6.5 FTEs +0.0 FTEs FY 2018 Adopted Revenue reflects the TIF at an increment of 30%; FY 2019 Proposed Revenue assumes the TIF at 25% Fund balances will be use to cover a portion of FY 2019 expenditures, which include: Construction for Clark Street demolition, Long Bridge Drive Phase 2, 27th Street and Crystal Drive 2-way Design for Army Navy Drive complete street, Transitway extension to Pentagon City 3

5 TIF Increment Decrease from 30% to 25% FY 2019 Proposed Budget recommends reducing the TIF increment from 30 to 25 percent Maintains County s commitment to executing the TIF-funded projects in the CIP, based on information available during budget development Proposed FY 2019 TIF revenues at 25% = $4.7M (-$1.6M compared to FY 2018 Adopted) $943,600 of the FY 2019 revenue change is due to the decrease in increment from 30% to 25%; $643,260 is driven by the 0.9% decrease in assessed value within the Crystal City TIF district for CY 2018 TIF revenues are paired with other internal and external funding sources to deliver the capital program 4

6 Fund Trends Crystal City, Potomac Yard, and Pentagon City Tax Increment Financing Fund (TIF) FY 2017 FY 2017 FY 2018 FY 2019 ( in $ Millions) Re-estimate Actual Re-estimate Proposed Opening Balance, July Revenues* Total Balance & Revenues Expenses** (3.6) (1.9) (3.8) (13.4) Closing Balance, June Fund balance is fully programmed to active projects. *FY 2017 Actual revenues include $1.3M grant reimbursement revenue and $780K developer contribution. **FY 2017 Actual expenses includes expenses against grant funds, etc. as well as TIF funds. 5

7 Transportation Capital Fund (TCF) Transportation Capital Fund is comprised of: 1. Local Commercial and Industrial (C&I) Tax Available for new construction/expansion of roads/transit, including debt service on bonds to support capital costs. Has served as a basis for leveraging state, regional and federal transportation funds for major capital projects. Vacancy rates impact revenues, resulting in tax fluctuations. $25M projected in FY NVTA Local (30% local allocation from HB 2313) 30 percent of revenues are returned to localities for eligible, locally selected transportation projects. Available for new construction, capital improvements that reduce congestion, and public transportation purposes. Has served as a basis for leveraging state, regional and federal transportation funds for major capital projects. $12M projected in FY 2019 (subject to change based on state action) 6

8 Recent Accomplishments Old Dominion Drive Improvements W&OD Trail Improvements Lee Highway & Glebe Road Intersection Improvements - Phase 1 ART Fueling and Bus Wash Facility 7

9 Construction Starts and Transit Expansion in 2018 Over $63M of projects moving into construction this calendar year ART Fleet Expansion foot buses Ballston Station Multimodal Improvements Boundary Channel Drive Extension S. Carlin Springs Road Signal Upgrades Carlin Springs Road - Vermont St to Edison St Clarendon Circle Improvements Clarendon at 15th Street Columbia Pike Streets Four Mile Run to Jefferson (Segment H&I) Columbia Pike Streets - Oakland to Wakefield (Segment F) Columbia Pike Streets - 12th Street S. from Glebe Rd to Monroe St Clark Street Demolition Crystal City Streets - 23rd Street: Eads to Route 1 (Phase I) Crystal City Streets - 27th Street and Crystal Drive 2-way Lee Highway and Glebe Road - Streetscape Lynn Street Esplanade/Lee Highway Old Dominion Drive Missing Link Pershing Drive Complete Street Walter Reed Drive - 5th Street to Columbia Pike Walter Reed Drive - Arlington Mill to Four Mile Run Wilson Blvd-Virginia Square Improvements 8

10 Summary of Proposed Budget Changes - TCF FY 2018 Adopted FY 2019 Proposed Change % Change Expenses $65,023,000 $60,370,000 -$4,653, % Revenue $38,323,698 $37,225,429 -$1,098, % Staff 22.0 FTEs 29.0 FTEs +7.0 FTEs Fund balances will be use to cover a portion of FY 2018 and FY 2019 expenditures Increase of 7.0 FTEs in FY 2019 includes: Shifting four positions from General Fund to TCF (2 Budget Analysts, 1 Grant Compliance Specialist, 1 Transportation Program Manager) Adding three positions to address program delivery gaps (2 TE&O Design Engineers, 1 Community Relations Specialist) 9

11 Ongoing Costs Planned for TCF Percent of TCF revenues directed to operations and program administration is increasing - from 16% in FY 2018 to 20% proposed for FY 2019 $(000) FY 2016 FY 2017 FY 2018 FY 2019 Operating Costs: ART Service Increases* ,067 2,395 WMATA Columbia Pike 341 Capital Bikeshare** ,058 ART Interim Satellite Parking*** Crystal City Potomac Yard Transitway ebuilder Subtotal Operating Costs 1,094 1,372 2,370 4,403 Transportation Capital Program Admin. 2,467 3,659 3,714 3,204 Total 3,561 5,031 6,084 7,607 * FY 2019 includes ART 41 and 45 service expansions and a proposed ART service overlay to Metrobus 22. ** County plans to diversify Bikeshare funding sources with sponsorships. *** Cost for interim satellite parking would cease after purchase of Shirlington Road property. 10

12 Fund Trends Transportation Capital Fund Commercial & Industrial Tax (C&I) FY 2017 FY 2018 FY 2019 ( in $ Millions) Actual Re-estimate Proposed Opening Balance, July Revenues Grant Revenues 5.1 Developer Contributions 3.1 Commercial Real Estate Revenues Total Revenues Total Balance & Revenues Expenses* (20.3) (48.4) (37.5) Closing Balance, June Fund balance is fully programmed to active projects. *FY 2017 Actual expenses include expenses against grant funds, etc. as well as TCF-C&I funds. 11

13 Fund Trends Transportation Capital Fund NVTA Local FY 2017 FY 2018 FY 2019 ( in $ Millions) Actual Re-estimate Proposed Opening Balance, July Revenues Capital Bikeshare User Fees 0.8 Grant Revenues 1.8 APS Revenue 0.1 NVTA Local Revenues Total Revenues Total Balance & Revenues Expenses* (7.1) (13.9) (22.8) Closing Balance, June Fund balance is fully programmed to active projects. Revenue estimate is subject to change based on state action. *FY 2017 Actual expenses include expenses against grant funds, etc. as well as TCF-NVTA Local funds. 12

14 Key Budget Considerations Funding Risks General Assembly/Governor developing plan for Virginia s dedicated funding for WMATA: General Assembly conference committee bill redirects the regional Transient Occupancy Tax and Grantor s Tax to WMATA, reducing the amount of NVTA funding available Current proposed language requires NVTC localities to provide an increment of $27.12M to WMATA (Arlington s share would be roughly $8M over and above existing commitments) DRPT fiscal cliff unresolved at this time (affects FY 2020 and future planned state transit grant revenues) GO Bond capacity is limited by existing commitments to Metro and Arlington Public Schools Paygo funding is limited 13

15 Key Budget Considerations Funding Risks The transportation CIP will have to be scaled and prioritized depending on the outcome of external funding decisions. This may also affect future transit expansion as outlined in the County Board adopted 10-year TDP, which is funded from dedicated transportation sources. 14