CHAPTER 280
REVENUE SHARING PROGRAM (REPEALED)

24VAC30-280-20. Definitions. (Repealed.)

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Construction projects" means projects that usually require more than one fiscal year to complete and that change or add to the characteristics of a road, facility, or structure.

"Eligible project" means work including construction, improvement, maintenance, and eligible street additions costs to which revenue sharing funds are available.

"Maintenance" means activities involved in preserving or restoring the roadway, facility, or structure to its original condition, as nearly as possible.

"Matching funds" means funds provided by the Commonwealth that are allocated to eligible items of work in participating localities to supplement, on a dollar-for-dollar basis, the locality's contribution for eligible projects.

"Project number" means a multi-digit alphanumeric code which identifies work to be completed; it is used in conjunction with construction. The usual format for a project number is rrrr-ccc-sss, Jnnn, where rrrr is the four-digit route code, ccc is the three-digit locality code, sss is a three-digit section code, J is a phase identifier, and nnn is the job number.

"Revenue Sharing Program Fund" means the designation given to the fund used to finance the specially funded program developed by the local government and the Department of Transportation subject to approval by the Commonwealth Transportation Board.

"Rural addition" means any street eligible for addition into the secondary system of state highways under § 33.1-72.1 of the Code of Virginia.

"Six-Year Plan" means either the Six-Year Improvement Program for Interstate, Primary, and Urban Systems developed by VDOT and the Commonwealth Transportation Board, or the Secondary Six-Year Plan, the official listing of improvements to be constructed on the secondary system, which is developed jointly by the Virginia Department of Transportation (VDOT) and the county governments (§ 33.1-70.01 of the Code of Virginia).

"System of state highways" means the primary or secondary roads under the ownership, control or jurisdiction of VDOT. "VDOT manager" means the department employee responsible for the administration of the revenue sharing program for that locality. For counties, the VDOT manager is usually the local residency administrator unless otherwise indicated. For cities and towns maintaining their own streets, the VDOT manager is the urban program manager for that locality.

24VAC30-280-25. Purpose. (Repealed.)

A. The Revenue Sharing Program provides additional funding for use by a county, city, or town to construct, maintain, or improve the highway systems within such county, city, or town and eligible additions in certain counties of the Commonwealth. Locality funds are matched with state funds, with statutory limitations on the amount of state funds authorized per locality.

B. The program is administered by the Department of Transportation, in cooperation with the participating localities under the authority of § 33.1-23.05 of the Code of Virginia. An annual allocation of funds for this program is designated by the Commonwealth Transportation Board.

C. Application for program funding must be made by resolution of the governing body of the jurisdiction in which the road is located. If a locality is requesting funds for a road outside its jurisdiction, concurrence from the affected jurisdiction must be provided. Towns not maintaining their own streets are not eligible to receive Revenue Sharing Program funds directly; their requests must be included in the application of the county in which they are located. Project funding is allocated by resolution of the Commonwealth Transportation Board. Construction may be accomplished by the Department of Transportation or by the locality under an agreement with the department.

24VAC30-280-30. Eligible work. (Repealed.)

A. The Revenue Sharing Program may be used to finance eligible work on highway systems within a locality. The Revenue Sharing Program is intended to provide funding for relatively small, immediately needed new improvements or to supplement funding for existing projects and their funding needs for the fiscal year. Larger new projects may also be considered provided the locality identifies any additional funding needed to implement the project. Revenue Sharing Program funds are generally expected to be used to finance project costs in the same fiscal year and projects should be in active development that is leading to their completion within the near term.

B. Below is a list of types of work that could be considered eligible for revenue sharing financing.

1. Deficits on completed VDOT-administered construction or improvement projects. When a project is completed with a deficit, the locality may request that the deficit be financed by the Revenue Sharing Program.

2. Supplemental funding for projects listed in the adopted Six-Year Plan and Ongoing Construction or Improvement Projects.

a. When the appropriate VDOT manager or locality anticipates the cost to complete a project will exceed the financing currently committed to this work, the locality may request that the anticipated deficit be financed by the Revenue Sharing Program.

b. When the appropriate VDOT manager anticipates allocations (in addition to those proposed in the adopted Six-Year Plan) will be required to completely finance a project, the locality may request permission to provide one half of such additional financing with the remaining one half provided by state matching funds. This includes, but is not limited to, such things as signalization, additional preliminary engineering, or acquisition of additional right-of-way. This procedure may be utilized to accelerate the funding of a project and thereby permits its completion earlier than otherwise would have been possible.

3. Construction projects not included in the adopted Six-Year Plan. When the appropriate VDOT manager concurs that the proposed work may be eligible for program funding, the locality may request one half the funds to construct a project not currently in the Six-Year Plan. However, in such cases, the locality funds, together with the state matching funds, should finance the entire estimated cost of the project within the fiscal year involved. A PE only project can be established provided it is fully funded.

4. Improvements (incidental). Any operation, usually constructed within one year, that changes the type, width, length, location, or gradient of a road, facility, or structure; or the addition of features not originally provided for such road, facility, or structure may be funded by the program. Incidental improvements are not generally included in the Six-Year Plan. This includes, but is not limited to sidewalks, trails, curb and gutter installation, plant mix placement on an existing hard surfaced road, or traffic signal installation.

5. Improvements necessary for the acceptance of specific subdivision streets otherwise eligible for acceptance into the system for maintenance. The improvements (widening, surface treating, etc.) necessary for the acceptance of certain subdivision streets otherwise eligible under § 33.1-72.1 of the Code of Virginia, known as rural additions, for acceptance into the secondary system of state highways may be funded by the Revenue Sharing Program. Roads in cities and towns are not eligible as additions to the urban system under § 33.1-72.1 of the Code of Virginia.

6. Unprogrammed maintenance whose accomplishment is consistent with the department's operating policies. Examples of this type of work include normal maintenance replacement activities such as guardrail replacement, plant mix overlays, sidewalks and curb and gutter repair.

7. New hardsurfacing (paving). The first-time paving of a previously unpaved roadway; usually composed of a multiple course asphalt surface treatment may be funded by the Revenue Sharing Program. Only roads in the state secondary system are eligible to use Revenue Sharing Program funds for new hardsurfacing. Urban system roads in cities and towns are not eligible.

8. New roadway. Revenue Sharing Program funds may be used to establish a new facility to be part of the system of state highways or part of the road system in the locality for which VDOT provides maintenance payments. In order for a new roadway to be eligible for Revenue Sharing Program funding, it must be a part of a locally adopted plan such as the locality's comprehensive plan and must be expected to divert sufficient traffic from existing public roads so that those roads will not need to be improved in the foreseeable future. Projects may also need to be included in the regional constrained long-range plan in air quality nonattainment areas.

24VAC30-280-40. Application. (Repealed.)

Requests for Revenue Sharing Program funding within a locality must be made by resolution of the governing body of the locality in which the road is located. The application package must include the resolution, the detailed designation of funds form and the summary designation of funds form. Localities requesting funds for a road in another locality must provide a letter of concurrence from the locality where the road is located. Towns not maintaining their own streets may not directly apply for Revenue Sharing Program funds but may include their requests as part of the package submitted by the county in which they are located. See Guidance Document (Revenue Sharing Guide) for additional information and forms.

24VAC30-280-50. Approval. (Repealed.)

A. Upon receipt of the requests, VDOT's Local Assistance Division reviews the application from each locality for eligibility. Once the localities' requests are found to be acceptable, the Local Assistance Division will prioritize the requests as delineated in § 33.1-23.05 B of the Code of Virginia. Priorities for funding are divided into four tiers. The following rules apply to administration and funding of projects under each tier:

1. Tier one will be fully funded before any funds are available for tier two, tier two will be fully funded before funding is available for tier three, etc. If funds are depleted in the first tiers, no further funds will be available.

2. Tier one provides funding when the governing body commits more than $1 million in general funds for a $1 million match for revenue sharing projects. The total amount of the locality's requests is the basis for considering tier one funding. If locality requests in tier one exceed available revenue sharing funds for the year, localities' requests will be prioritized based on the amount of local funds committed above the matching funds. In the case of a tie, funds for those localities will be prorated. For example, if four localities commit $1.1 million but only $3 million remains in the Revenue Sharing Program Fund, each of the four localities will receive $750,000.

3. For tiers two through four, projects will be prioritized individually. For tiers two through four, if requests within a tier exceed available revenue sharing funds, all projects within that tier will be prorated based on the total requests for that tier and funds remaining.

4. Tier two provides funding when the project is administered by the city, county, or town. Local administration must include all remaining phases of the project. If the project is changed to VDOT administration, the project will be reevaluated for tier assignment and fund availability may be affected.

5. Tier three projects may receive funds when the allocation will accelerate an existing project in the Six-Year Improvement Program or the locality's capital plans. To qualify for tier three, unscheduled projects must move into the 24-month advertisement schedule. For projects in the locality's capital plan, the locality must provide documentation of an established advertisement date and show that Revenue Sharing Program funding will be able to advance the advertisement date. A project will also qualify for tier three if the addition of Revenue Sharing Program funds will keep the project advertisement date on schedule.

6. From any funds remaining, any other requests that have a matching allocation from the governing body are considered tier four projects.

B. Based on the project priorities, the Local Assistance Division develops the statewide program for submission to the Commonwealth Transportation Board for approval. The Local Assistance Division will review with other divisions as necessary and appropriate.

The Commonwealth Transportation Board approves the Statewide Revenue Sharing Program, including allocations to specific projects in each locality's request. The Commonwealth Transportation Commissioner may approve transactions, such as locality/state agreements, for revenue sharing projects prior to Commonwealth Transportation Board approval; however, no state funds may be expended on such projects until approval by the board and no project work should be conducted, prior to approval by the board, for which reimbursement from the Revenue Sharing Program is expected.

24VAC30-280-60. Implementation. (Repealed.)

Upon Commonwealth Transportation Board approval of the statewide program, development of the individual projects begins. The state matching funds for the approved projects are reserved and placed in a special account. Projects may be developed and constructed by VDOT or the locality.

1. VDOT administered work.

a. VDOT will request payment from the locality for its share of the estimated cost of work to be performed; the money is collected prior to the beginning of work. After the project is completed, VDOT will make final billing to the locality for its share of the actual costs incurred, in excess of those provided at the beginning of the project. If the locality's share of the actual cost is less than the estimated cost, the difference will be refunded to the locality or the locality may transfer the remaining funds to another existing project as noted in the section describing Transfer of Funds (24VAC30-280-65). See Guidance Document (Revenue Sharing Guide) for additional information.

b. If a local government wishes to cancel a project begun under the Revenue Sharing Program during the Preliminary Engineering (PE) or Right of Way (RW) phases but prior to the Construction (CN) phase, it may do so by resolution of the local governing body. The department retains the sole option to require reimbursement by the locality of all state matching funds spent from the time the project was begun until it is canceled.

c. If the project does not begin before the end of the fiscal year involved, the locality must pay its share to the department, or certify that the money is held in a special fund account specifically earmarked for the project or projects. This must occur by April 1 of the fiscal year or moneys will be returned to the Revenue Sharing Program Fund and made available for supplemental funding.

2. Locally administered work.

a. VDOT has published a Guide for Local Administration of VDOT Projects that provides general guidance for locally administered projects. This guide is available on the Local Assistance Division webpage on the VDOT website (http://www.virginiadot.org/business/local-assistance- locally%20administered.asp). The Local Assistance Division, working with the appropriate project coordinator will prepare locality/state agreements that govern the performance of work administered by the locality. The agreement must be executed by both the locality and VDOT prior to incurring any cost to be financed from the Revenue Sharing Program. Locality/state agreements must be executed or VDOT must receive a certification that the funds are in a special account by April 1; otherwise moneys will be returned to the Revenue Sharing Program Fund and made available for supplemental funding.

b. Once the project begins, the locality may submit monthly invoices to VDOT for eligible costs incurred. For tier one, when a locality has committed local funds in addition to the required matching funds for their total application, those additional local funds must be spent prior to any Revenue Sharing Program matching funds. After all work is completed, the locality makes a final billing to VDOT for its share of the actual eligible costs incurred. If the actual cost is less than that provided by the agreement, the remaining VDOT difference may be transferred to another existing project as noted in the section describing Transfer of Funds (24VAC30-280-65), or, if the locality desires, refunded to the VDOT Revenue Sharing Program Fund.

c. If a local government wishes to cancel a locally administered project begun under the Revenue Sharing Program before it is completed, it may do so by resolution of the local governing body. The department retains the sole option to require reimbursement by the locality of all state matching funds spent from the time the project was begun until it is canceled.

24VAC30-280-65. Transfer of funds. (Repealed.)

To implement a transfer of funds to an existing project, the county administrator or city/town manager may request funds be moved from one revenue sharing project to another existing revenue sharing project in order to provide additional funds. Revenue Sharing Program funds may also be transferred to an existing project in the Six-Year Improvement Program or Secondary Six-Year Plan if needed to meet the approved federal obligation schedule or to ensure a scheduled ad date can be met if approved by the Commonwealth Transportation Board. Included in the request must be the detailed reasons for the request and status of both projects.

24VAC30-280-70. Additional allocations. (Repealed.)

No more than three months prior to the end of any fiscal year in which less than the total provided appropriation has been allocated, those localities committing more than $1 million may be allowed an additional allocation. The funds available for redistribution shall be allocated at the discretion of the Commonwealth Transportation Board among the localities receiving the maximum allocation.

FORMS (24VAC30-280)

Project Detail — Designation of Funds Form (rev. 4/06).

Summary — Designation of Funds Form (rev. 4/06).

CHAPTER 281
REVENUE-SHARING PROGRAM POLICY

24VAC30-281-10. Policy.

A.  Pursuant to § 33.1-23.05 of the Code of Virginia, the Commonwealth Transportation Board adopts the following policy concerning administration of revenue-sharing funds for systems in certain counties and towns of the Commonwealth:

1.  The Revenue-Sharing Program shall provide a matching allocation up to $1 million to any county, city, or town for projects designated by the locality for improvement, construction, or reconstruction of highway systems within such locality. 

2.  Revenue-sharing funds shall be prioritized and allocated in accordance with the provisions of § 33.1-23.05 B of the Code of Virginia.

3.  Application for program funding must be made by resolution of the governing body of the jurisdiction requesting the funds. A locality may request funds for a project located within its own jurisdiction or in an adjacent jurisdiction, with concurrence from the governing body of the other locality. Towns not maintaining their own streets are not eligible to receive Revenue-Sharing Program funds directly; their requests must be included in the application of the county in which they are located. All requests must include a priority listing of projects.

4.  Funds may be administratively transferred from one revenue-sharing project to another existing revenue-sharing project. If approved by this board, revenue-sharing funds may also be transferred to an existing project in the Six-Year Improvement Program or Secondary Six-Year Plan if needed to meet the approved federal obligation schedule or to ensure that a scheduled advertisement date can be met or accelerated. Requests for all such transfers must be made in writing by the county administrator or city/town manager. Such requests must include the reasons for the request and the status of both projects.

5.  The Revenue-Sharing Program is intended to provide funding for relatively small, immediately needed improvements or to supplement funding for existing projects.  Larger new projects may be considered, provided the locality identifies the additional funding needed to implement the project. Revenue-sharing funds are normally expected to be used within the fiscal year following their allocation. If a project having funds allocated under this program has not been initiated so that a portion of such funds have been expended within two subsequent fiscal years of allocation, the funds may be reallocated at the discretion of this board.

6.  No more than three months prior to the end of any fiscal year in which less than the full program allocation has been allocated by this board to specific governing bodies, those localities initially requesting the maximum allocation as defined in § 33.1-23.05 of the Code of Virginia may be allowed an additional allocation.

7.  The Commonwealth Transportation Commissioner is directed to establish administrative procedures to assure the provisions of this policy and legislative directives are adhered to and complied with.

24VAC30-281-9999.

Revenue Sharing Program Guide (2008).§