2. 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
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3. 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
5. 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
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9. 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
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* Includes Pay-Go, Bond Debt Service, and use of reserves/early debt payments
10. Use of Tax Revenue
(inmillions)
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
11. 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
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