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Eagle Lake approves $5.2 million bond, adopts multi-year utility rate increases
Summary
The City Council authorized Series 2026A general obligation and utility revenue bonds and adopted multi-year water, wastewater and stormwater increases to cover new debt and restore enterprise fund health; bond closing is set for May 20.
The City of Eagle Lake on April 6 approved Resolution 2026-18 authorizing the issuance and sale of $5,200,000 in General Obligation Improvement and Utility Revenue Bonds, Series 2026A, and adopted a package of multi-year utility rate increases to support the 2026 street and utility reconstruction project.
Shannon Sweeney of David Drown Associates told the council the city received an S&P Global AA- rating and that bids for the financing were tightly clustered. A premium bid from Robert W. Baird & Co., Inc. effectively reduced the principal the city will borrow to $5,070,000 by providing an additional $157,000, resulting in a net interest rate of about 3.8654%. Sweeney said bond closing is scheduled for May 20, when funds will be available to pay project costs.
Alongside the bond presentation, Sweeney recommended changes to enterprise rates to ensure positive cash flow. The council adopted the recommended increases, to take effect with July usage. Key changes presented and adopted include: annual water fee increases of 5% through 2029 (Sweeney estimated a 5,000-gallon-per-month customer’s water bill would rise from $34.86 to about $40.35 per month by 2029); wastewater increases of 15% in 2027 and 2028, 10% in 2029 and 5% in 2030 (a 5,000-gallon customer’s wastewater bill was estimated to rise from $46.82 to about $68.11 per month by 2029); and stormwater increases of 40% in 2027 and 35% in 2028 (a typical residential stormwater charge was projected to increase from $4.94 to about $9.34 per month by 2028). Sweeney also estimated the tax-levy impact at roughly $154.35 for a home with an assessed market value of $300,000 based on taxes payable 2025 data.
Council Member Anthony White moved to adopt the bond resolution and the rate changes; both motions passed on unanimous roll-call votes. Administrator Jennifer Bromeland said residents will be notified of the rate changes in the city newsletter.
The council also approved Contractor’s Application for Payment No. 1 to DMI for $238,342.09, a payment Bolton & Menk engineer Brian Sarff recommended approving as work completed to date. Funding for that work will come from the bond proceeds once the issuance closes.
