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CVTA reports more than $1 billion in tax revenue and $17 million in interest income; finance committee explores investment rules
Summary
Staff told the authority the region has passed $1 billion in tax revenues collected under CBTA and has accumulated more than $17 million in interest income. The finance committee discussed options for using interest income and asked staff to develop a reinvestment snapshot tool with PFM.
Staff told the Central Virginia Transportation Authority that the region has exceeded $1 billion in CBTA tax revenues and that the pooled funds have generated more than $17 million in interest income available for future consideration.
Chad, the authority’s executive director, highlighted the milestone: “We are now over $1,000,000,000 in tax revenues.” He also said the authority has “over $17,000,000 in interest income” in pooled funds and that the finance committee discussed creating guidelines or requirements for how to approach interest income going forward.
Finance committee members and staff said they are examining whether some interest proceeds should be used for project investment and whether funds held for multi-year commitments should be placed into longer-term instruments. One board member suggested placing multi-year-held funds into certificates of deposit or other longer-term vehicles rather than daily pooled accounts to secure higher returns.
Staff outlined a planned task order with PFM to develop a tool that will provide a point-in-time snapshot of funds available for reinvestment that are not committed to regional project commitments or the working capital reserve. The tool is intended to help the authority consider longer-term investment strategies while preserving funds for known near-term obligations.
The monthly investment report included talking points prepared by Chesterfield County (the authority’s fiscal agent) to draw attention to items in the packet. Staff and finance committee members commended inpatient coordination among fiscal agents in Chesterfield County and the City of Richmond for managing CBTA funds.
Board members praised the financial reporting and said the transparency and stewardship demonstrated by the fiscal agents is notable. No action was taken beyond the direction to staff to develop the PFM task order and return with recommendations to the finance committee.
Background: the authority recently established a working capital reserve; staff said most available funds are currently in pooled accounts because those funds offer the best rates at present, but that the staff and finance committee want better visibility on funds that could be placed into longer-term strategies.
