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Chelsea council approves notice of intent for $11.75M in capital improvement bonds, adopts budget amendments
Summary
The City of Chelsea voted March 23 to publish a notice of intent to issue up to $11,750,000 in capital improvement bonds to fund a water plant expansion and road projects, adopted budget amendments and approved several related contracts and permits.
The City of Chelsea City Council on March 23 adopted a notice of intent to issue up to $11,750,000 in capital improvement bonds to help pay for a planned water plant expansion and several road projects.
Bond counsel Tom Colis outlined the bond process and answered Council questions before Council adopted Resolution #2026-16, with an amendment to the dollar amount listed in Exhibit A. "As part of the process of issuing capital improvement bonds," Colis said, the resolution authorizes publishing the required notice of intent.
Why it matters: The bonds would be payable in no more than 30 years and the City intends to reimburse itself from bond proceeds for prior project expenditures. Council members discussed sequencing and timing for projects in the City’s Capital Improvement Program (CIP) so staff can align bids and summer construction schedules with Council priorities.
Interim Finance Director Tracy Watkins presented proposed budget adjustments for fiscal year 2025–26 and Council adopted Resolution #2026-13 to implement the amendments. "These budget amendments are necessary to adapt to changing circumstances and preserve fiscal accountability," Watkins said.
Votes at a glance: the Council recorded unanimous approval on the key items discussed at the meeting. Motions to adopt Resolution #2026-16 (notice of intent to issue bonds) and Resolution #2026-13 (budget amendments) passed "all ayes." The Council also approved the purchase of one hundred 1" smart water meters from Metron Farnier for $58,500 plus shipping, and adopted resolutions approving outdoor café seating at Los Tres Amigos (Resolution #2026-11), a special event permit for the Heatwave race (Resolution #2026-14), and a contract with MDOT for pedestrian crossing signs on M-52 (Resolution #2026-15).
Council members said staff will continue preparing bid documents to maintain project timelines while the CIP is refined for inclusion in the full FY budget package. City Manager Elle Cole noted staff would use Council feedback to adjust project timing before returning the full budget to Council for formal approval.
What’s next: The notice of intent publication required by law will allow the City to proceed with the bond issuance process; final bond authorization and sale would require later Council action.
