Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bonding topic
No spam. Unsubscribe anytime.
BET approves $240–$245M planned 2026 bond issuance; one commissioner objects to Haywatha project
Summary
The Board of Estimate and Taxation voted to authorize and award the city's 2026 general-obligation bond issue after a presentation on structure and timing; one commissioner voiced opposition to reauthorizing bonds for the Haywatha Public Works expansion, citing concerns about undoing a long-term master plan.
The Minneapolis Board of Estimate and Taxation voted June 24 to adopt authorizing and awarding resolutions for the city's 2026 general-obligation bond issuance, following a presentation by Finance & Property Services senior manager Dave Wheeler who estimated the market-adjusted issue would be roughly $240–$245 million.
Wheeler told commissioners project managers had identified approximately $251 million in project financing requests for projects that are either begun or expected to start in the next 12–18 months; because municipal bonds are trading at premiums, he said the likely sale size after accounting for premium would be lower than par. "When we get to market, we'll probably... have an issue size around 240 to $245 million this year," Wheeler said.
Wheeler described the planned structure as 20 level principal payments maturing through 2045 with an optional call in 2035, and said the sale will include a mix of levy-funded and enterprise-funded projects and some assessment bonds tied to street improvements. He told the board the issuance would use about 103 separate project authorizations approved by the council and that timing is driven by when projects are ready to spend bond proceeds.
During the discussion Vice President Bernstein and other commissioners asked how much principal is retired annually (Wheeler estimated roughly $100 million overall) and what portion is levy-funded (Wheeler estimated roughly a third). The board moved to adopt Resolutions 2026004 and 2026005 as a block; on a roll call the vote was recorded with Commissioners Olsen, Payne and Vice President Bernstein voting "yes," President Brandt abstaining, and two members absent (Member Chuck Tai and Fry). The clerk recorded the matter as passed with four "I" votes and one abstention.
Separately, one commissioner said they would not support bond authorization that included the Haywatha Public Works Maintenance Facility expansion, arguing the project would upset a long-standing master plan to consolidate public works and could derail planned east-yard relocation and training functions. The commissioner urged the body to seek other sites and cautioned against preferring projects with political backing over the department’s consolidation goals.
What’s next: Staff will move forward with steps needed to bring the bonds to market in July or August, including coordinating rating calls with agencies and completing authorizing paperwork. Any later decision to include a refunding of 2018 green bonds would be brought back to the BET for approval if market conditions make refunding prudent.
