Central Virginia Transportation Authority begins bond-validation process as it prepares regional bond options

The Central Virginia Transportation Authority (CVTA) said it is pursuing a court-led bond-validation process and preparing a plan of finance to evaluate issuing bonds to fund large regional transportation projects.

“CVTA is moving forward with a very deliberate, step by step process to evaluate the issuance of bonds for transportation projects,” said Chuck Parsons, executive director of the Central Virginia Transportation Authority, at the finance directors working group meeting. Parsons told the group the goal is to finish preparatory work so the authority will be able to issue bonds only when projects and timing align.

The validation step will ask a court to review the enabling legislation, the taxes proposed as the repayment source and the trust indenture that would govern the debt. “Bond validations are authorized under state law, under the public finance act,” said Megan Gilliland, bond counsel, who described seeking court sign‑off on the constitutional and statutory construct of the authority and on the structure…