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North Mankato authorizes $2.5 million bond to fund Industry Court, water and sewer work
Summary
The City Council voted 4–1 on July 6 to authorize a $2.5 million General Obligation bond issuance to fund street work on Industry Court and water and sewer projects on Marie Lane; the city will seek an S&P rating and accept competitive bids Aug. 3, 2026.
The North Mankato City Council on July 6 authorized the competitive negotiated sale of $2.5 million in General Obligation Improvement Bonds, Series 2026B, to pay for Industry Court street improvements and Marie Lane water and sewer work, plus bond issuance costs.
Jessica Green of Northland Securities told the council the bonds would be secured by special assessments, net water and sewer revenues and property tax levies, would mature annually from 2028 through 2042, and have an estimated true interest cost of 3.91 percent. Green said the city will seek a rating from S&P Global Ratings (the city's current general obligation rating is "AA") and expects to sell the bonds through competitive bids with proposals due Aug. 3, 2026.
Council Member Oachs questioned why the city combined separate projects into a single bond issuance, saying combining them made the funding for the street improvements less transparent and asked whether utility rate increases might be needed if net utility revenues proved insufficient to cover debt service. Green said issuing separate bonds could raise borrowing costs and that combining projects "provides economies of scale," and City Administrator McCann noted the Industry Court assessment was considered in the purchase price of Port-owned property and will be paid when the property sells.
The council adopted Res. No. 73-26 on a 4–1 vote: Council Members Peterson, Whitlock, Steiner and Mayor Carlson voted aye; Council Member Oachs voted nay.
Bids for the bonds are due Aug. 3, 2026, and the council is scheduled to consider award of the sale on Aug. 3. The authorization directs staff to proceed with solicitation of proposals and to request a rating from S&P Global Ratings.
