Chaska approves $27.5 million in bonds for water infrastructure
The Chaska City Council ratified the sale of $27.5 million in bonds on August 4th to finance a new water treatment plant and critical water main replacements across the city. The bonds received a strong AA credit rating, reflecting the city's solid financial health.
The council approved Resolution 2026-69, which ratifies the Series 2026B bonds sold on July 22nd. According to city staff, the funds will support construction of a new North water treatment plant at the corner of Huntermark and Pioneer Trail, along with various water improvement projects and a significant portion of the Jonathan Water Main reconstruction project.
The bond sale earned a Double A rating from Standard & Poor's, a strong credit assessment. Crystal Hagen from Piper Jaffray, the bond firm handling the sale, explained that the rating reflects "the city's robust economy and the growing tax base" as well as "considerable revenue flexibility" and "proactive fiscal management." The bonds will be repaid through the city's water utility revenues at no cost to taxpayers.
A particularly notable aspect of the bond sale is how the premium—extra money earned from favorable market conditions—will be used. City staff said the premium will help pay for replacing the Jonathan Water Main, a long-standing infrastructure need in an industrial area home to businesses like Crown Extrusions and Apex.
In a separate unanimous vote, the council also adopted Resolution EDA 2026-71, which calls for a public hearing on establishing Tax Increment Financing District 26 in the Big Woods Business Park. The hearing is scheduled for August 31st. Staff noted that Chaska has an unusual administrative structure where the same people serve on both the City Council and the Economic Development Authority, requiring both bodies to approve the TIF district. As one staff member put it, "It's like you're giving yourself permission."
Our proprietary artificial intelligence agent analyzed publicly available documents including meeting agendas, minutes, and transcripts to write this story to help inform local residents. Feedback helps us improve, so please consider rating how we did with the thumbs up or down below.
Go deeper on this topic
Research related meeting documents and build a brief — without rewriting the story.
Full analysis
Votes (2)
Adopt Resolution 2026-69, Ratifying the Sale of Series 2026B Bonds
Dissent: None
Moved by Unknown [00:11:39] · Seconded by Not explicitly stated in transcript
The item involved ratifying the sale of $27.5 million in General Obligation Utility Revenue Bonds (Series 2026B) on July 22nd, which will finance the new North water treatment plant, other water improvement projects, and a portion of the Jonathan Water Main reconstruction. The bonds received a Double A rating, attributed to the city's robust economy and proactive fiscal management. The premium from the bond sale was specifically allocated to the Jonathan Water Main project, addressing a long-standing issue in an industrial area.
Adoption of Resolution EDA 2026-71 calling for a public hearing on the establishment of TIF District number 26, Big Woods Business Park
Dissent: None
Moved by Commissioner Shevlin [00:30:10] · Seconded by Commissioner Hatfield [00:30:16]
This resolution initiates the process for establishing a Tax Increment Financing (TIF) District in the Big Woods Business Park, requiring a public hearing scheduled for August 31st. Staff clarified that this action needs approval from both the City Council and the EDA, a unique procedural aspect in Chaska where the bodies are composed of the same members.
Notable Quotes (6)
Mayor and council members, the item in front of you tonight is in relation to the construction of our new water treatment facility, which has started up in the space at the corner of Huntermark and Pioneer Trail on some land that we owned and some land that we purchased from Hazel team.
The security, of course, the bonds are general obligation pledge of the city, but are expected to pay be paid with the city's water utility revenues with no cost.
Like Chris said, we're going to use the premium from this to basically help pay the cost of replacing that pipe, which is a huge benefit to There's a couple of those businesses out there.
The rating reflects S&P's view of the city's robust economy and the growing tax base. Uh the city has considerable revenue flexibility, uh proactive fiscal management, commitment to increase reserves while substantial managing substantial new debt is positive.
As mentioned before, this is identical item that was on the council meeting. It's just calling for a public hearing uh for establishing Kiff Tiff District number 26. The council and the EDA have to both uh actually take all actions on that because uh it involves both EDA and the city.
Um but in essence it's weird for us because our EDA are the same people as the council members. In some cities, EDA is a completely different group. And so, you know, then, you know, basically the city's giving permission to the EDA to do certain things. It's a little different when you're the same people sitting up there. It's like you're giving yourself permission.
Ordinances & Resolutions (5)
Ratifying the sale of Series 2026B bonds for water infrastructure.
General Obligation Utility Revenue Bonds financing water treatment plant and improvements.
EDA lease revenue bonds mentioned for comparison during bond sale discussion.
Calling for a public hearing on the establishment of TIF District number 26.
Proposed Tax Increment Financing District for Big Woods Business Park.
Source document
Was this story helpful?
Other Topics from This Document
Community Events and Public Engagement
Public Safety and Infrastructure Operations
Economic Development and Planning
Want to know when new stories arrive?
Enter your email to receive updates.
We will not use your email for any other purpose. You can unsubscribe at any time.