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CBTA finance committee discusses access procedures for $18 million working capital reserve
Summary
Committee members reviewed guidance on when the authority can draw from its $18 million working capital reserve, outlining proper and improper uses and noting the guidance was vetted with finance directors.
The CBTA finance committee discussed access procedures for the authority's working capital reserve at its July 10, 2025, meeting, describing the reserve as a contingency fund to stabilize cash flow during widespread revenue shortfalls or other region-wide emergencies.
Staff said the working capital reserve is at its capacity, approximately $18,000,000. Proper uses described included broad cash-flow events such as a recession that causes tax revenues to fall below projections, projects completing far ahead of schedule that create unforeseen cash needs, or the General Assembly withdrawing funds while projects are active. Staff characterized improper uses as single-project overruns and routine debt service, which are expected to be addressed through other budgeted mechanisms or a bond-specific debt reserve.
Staff told the committee the guidance had been circulated to the Transportation Advisory Committee and the finance directors' working group and had not generated substantive objections. Committee members asked clarifying questions about whether the reserve could be used to meet an authority debt service shortfall during a recession; staff clarified that bond issuances would include separate, bond-specific reserves and that the working capital reserve is intended for region-wide cash-flow stabilization.
No formal vote was taken; the item was presented as an update and to solicit questions and direction from the committee.
