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City and EDA ratify $6.125 million lease‑revenue refunding bonds; officials cite about $1.3 million in present‑value savings
Summary
On Jan. 7 the Chaska City Council and the Chaska Economic Development Authority ratified the sale of $6,125,000 in EDA lease‑revenue refunding bonds (Series 2025 B). City advisers said the refunding will shorten repayment by one year and yield roughly $1.3 million in present‑value savings and about $42,000 in annual savings.
The Chaska City Council and the Chaska Economic Development Authority on Jan. 7 ratified the sale of $6,125,000 in lease‑revenue refunding bonds (Series 2025 B) that were sold to DA Davidson, city financial advisers said.
Chris Hogan, municipal adviser with Baker Tilly, told the council the EDA issued and sold the bonds in a public sale and received a rating of AA‑. Hogan said the bonds refunded the EDA’s 2015 B bonds, which had financed park projects, and that the refunding eliminated the need to continue holding a debt service reserve fund tied to the old issue.
“The Economic Development Authority issued and sold bonds to DA Davidson for $6,125,000,” Chris Hogan said. He said the refinancing allowed the city to shorten the repayment term by one year, realize average annual savings of roughly $42,000 and achieve gross present‑value savings of about $1,300,000.
City staff said the savings will be used in part to support ongoing costs for the curling and events center, including planned maintenance such as carpet and chair replacement.
On the council floor, Council member Chevlin moved to approve Resolution 2025‑10 ratifying the sale; Council member Graf seconded. The council approved the resolution by voice vote with no opposition recorded. The EDA subsequently held its own meeting and ratified the sale; commissioners moved and seconded the EDA ratification and recorded no opposition.
City staff and advisers said the parameters resolution the council approved in prior meetings authorized staff to enter the market when rates were within an acceptable range; staff returned this week to ratify the actual sale and resulting debt structure.
