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CVTA TAC debates limits on using regional funds for PE‑only projects and leveraging; keeps cap flexible
Summary
TAC discussed draft framework language limiting CBTA regional funding for PE-only (preliminary engineering) projects and agreed to remove fixed dollar amounts; members confirmed a 10% annual cap (not strictly enforced) and asked staff to clarify whether converted leveraging counts toward the cap and to prepare a list of bond-ready projects for December.
The TAC spent a substantial portion of its Nov. 4 meeting on whether CBTA regional dollars should be used to fund preliminary engineering (PE) for projects that lack identified construction funding. Staff presented framework language that would allow leveraging funds to be used to develop 30% plans but would not treat projects with only leveraged funding as "active" until they were fully funded.
Staff summarized the proposal: "Projects with funding intended for leveraging are not considered active projects until fully funded," and sponsors may request a portion of leveraging funds to develop 30% plans, provided the PE request is made prior to the next regional application cycle.
The packet also explained proposed caps on PE-only funding: the draft limited PE-only funding to 10% of annual regional funding (roughly $6.5 million per year). Several TAC members described the draft figures as "smushy" and recommended removing the static dollar approximations and clarifying that the cap is calculated on an annual basis (which would total roughly $13 million across a two‑year program cycle).
Members also debated whether converting previously pledged leveraging into PE (i.e., using leverage to fund 30% design) should count toward the cap. Miles asked whether converted leveraging requests would be included; the TAC agreed that all leveraging — original requests and any converted to PE — should count toward the same PE cap and asked staff to add clarifying language.
On executing project agreements (SPAs) that advance PE before external awards are final, Amy warned sponsors could jeopardize their leverage if VDOT or other funding partners do not honor the pledged leveraging, and said any early SPA should be supported by written commitments from the leverage partner.
Decisions and next steps: TAC members agreed to remove fixed approximate dollar amounts from the framework language to preserve flexibility, but to keep a policy guardrail referencing an annual percentage cap (10% of annual CBTA funding). Staff will add language making clear that converted leveraging counts toward the cap and will prepare a list of projects that appear to be candidates for bonding for discussion at the December meeting.
