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Eagle Lake council adopts $5.0M street and utility assessment, authorizes $5.2M bond sale
Summary
The City Council unanimously adopted special assessments to fund a $5,005,089 street and utility reconstruction project and authorized a competitive sale of $5.2 million in bonds to finance the work; property assessments will be added to 2027 tax statements with prepayment options available.
The Eagle Lake City Council on April 6 adopted the special-assessment roll to fund the 2026 Street and Utility Improvements Project and approved a resolution authorizing the competitive sale of $5.2 million in general obligation improvement and utility revenue bonds.
City engineer Brian Sarff of Bolton & Menk described the project scope, which covers Maywood Avenue, Diane Drive, Plainview Street, Third Street and Second Street and addresses failing underground clay sewer pipe, corroding cast-iron watermain and missing storm sewer in places. The project estimate for street, sewer, water and storm work totals $5,005,089.
Sarff said the city contracted a third party to conduct a special-benefit analysis that substantially lowered assessment amounts for property owners; the final assessments will be certified to the Blue Earth County auditor and appear on property tax statements payable in 2027. Property owners may prepay in full within 30 days of adoption without interest; prepayments after Nov. 15 will include interest through Dec. 31 of the payment year. For those who do not prepay, assessments carry 6.0 percent interest over a 20-year term.
Separately, Shannon Sweeney of DDA, Inc. explained the planned bond sale. The city will solicit competitive bids (bids due May 4, 2026) for $5.2 million in bonds with an estimated interest cost of 3.8 percent and projected annual payments of about $371,000. The first call date on the bonds will be Feb. 1, 2033. Council members unanimously approved both the assessment adoption and the bond authorization by roll call vote.
Because the assessment affects individual property tax bills and can be prepaid, city staff said notices with property-specific assessment amounts were mailed to affected owners and that the council may offer payment deferrals to qualifying individuals on application to the city administrator.
