Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Council and EDA ratify $55M EDA bond sale to fund MSB2, plaza and refinance interim debt
Summary
Council and the Chaska EDA ratified a Series 2026A lease‑revenue bond sale (about $55.38M par; low bid ~4.39% TIC) to fund the MSB2 project, refinance prior interim financing, and support the City Hall plaza. S&P assigned an A‑/stable rating; the bonds are callable after 10 years.
Chaska’s City Council and the city’s Economic Development Authority ratified the sale of Series 2026A lease‑revenue bonds to finance multiple parts of the city’s capital program, including construction of MSB2, refinancing of short‑term debt associated with the MSB site, and completion of the City Hall plaza project.
Finance staff and the municipal advisor reported that the bonds were competitively marketed on June 10. The winning underwriter bid produced a true interest cost just under 4.4 percent (low bid 4.39%). The sale generated approximately $1.089 million of premium; $500,000 was retained to address the City Hall plaza contingency and the remainder used to reduce the par amount of the issue. The EDA issuance structure uses a 30‑year lease pledge from the city with a 10‑year call feature; the call provision allows refinancing opportunities should market conditions improve.
S&P reviewed the city’s finances and affirmed an A‑ rating with a stable outlook; analysts cited the city’s multiyear planning, growing reserves and utility cash flows as strengths. City staff emphasized the market timing advantage and estimated debt service savings from the favorable rates. Council formally ratified the sale by motion; the EDA adopted a parallel resolution ratifying the issuance.
What’s next: bond closing formalities are complete; staff will monitor call/refinancing opportunities and manage proceeds for MSB2 construction and plaza contingencies. Council and EDA staff said they will continue to present periodic updates on project budgets and debt service implications.
