Council ratifies sale of Series 2026B bonds to fund water treatment plant and water-main work

The Chaska City Council on Aug. 3 adopted Resolution 2026‑69, ratifying the sale of its Series 2026B bonds to finance construction of the North Water Treatment Plant and other water‑utility improvements. Council members were told the bond sale closed July 22 and that water‑fund revenues, supplemented by a general obligation pledge, secure repayment.

“Noel” (staff) told the council the sale supports the water treatment plant and other water projects and described the financing structure and additional security for bondholders. Municipal advisor Chris Hogan said the sale produced favorable pricing and a premium that helped finance portions of the Jonathan Water Meade reconstruction and other projects; she said, “That sale was completed on July 22.”

Councilors asked for details about where funds would be applied. Staff and the municipal advisor said the bond proceeds and the sale premium will finance a mix of treatment‑plant costs, deep wells built over the past two years and reconstruction projects. The council discussed using part of the premium specifically to replace a frequently failing water main behind Apex industrial properties; a council member said the replacement is “a huge benefit” to nearby businesses.

After discussion, the council moved and approved the resolution to ratify the sale. Staff listed the financing term as 25 years with level debt service and described the city’s double‑A general obligation rating that underpinned pricing. The city also intends to use premium receipts to reduce the net borrowing need for related water reconstruction work.

The next steps are implementation of the financed projects and routine reporting on construction and debt service; staff did not provide a detailed construction schedule in the meeting record.