Blaine City Council Approves $9.95 Million in 2025A Bonds to Fund Key Infrastructure and Capital Improvements

Blaine, MN — The Blaine City Council has approved the issuance of $9.95 million in 2025A General Obligation Improvement and Utility Revenue Bonds, a move designed to finance essential infrastructure and equipment investments outlined in the city’s 2025–2029 Capital Improvement Plan (CIP).

The measure passed on a 5–2 vote during the council’s recent meeting, with Council Members Jess Robertson and Chris Massoglia voting in opposition.

Financing Blaine’s Future: Utility and Infrastructure Projects Ahead

City Finance Director Jason Zimmerman explained that the approved bond proceeds will fund several key areas identified in the City’s long-term CIP, adopted in December 2024. These include:

• Utility infrastructure upgrades
• Utility capital equipment purchases
• Pavement management and road improvement projects
• General capital equipment

Zimmerman clarified that the bonds are a general obligation of the City, backed by Blaine’s “full faith, credit, and taxing power.” The repayment terms are structured at 15 years for utility and pavement projects, and five years for utility equipment.

Debt service payments, Zimmerman said, will be covered through utility customer fees for related improvements and special assessments for pavement management projects.

Parameters and Fiscal Oversight

To guide the bond’s issuance, the council approved a parameters resolution—the legal and financial framework allowing the city’s professional finance team to market and sell the bonds within specific limits. The resolution delegates authority to a pricing committee comprising Blaine’s city manager and finance director and sets the following parameters:

• Maximum Bond Amount: $9,950,000
• Maximum Interest Rate: 4%
• Final Maturity Date: February 1, 2041
• Award of Sale: Within 90 days

Zimmerman noted that, as part of earlier fiscal guidance from the council, staff were directed on August 11 to use unrestricted General Fund reserves instead of additional bonding for general capital equipment purchases.

He added that while the decision could lead to a short-term tax levy increase, the long-term strategy is expected to reduce borrowing costs and save on interest expenses.

The 2025A bond total marks a significant reduction from previous years — down from $31.83 million in 2024B and $24.43 million in 2023A, reflecting the city’s gradual shift toward a more sustainable debt strategy.

Council Opposition and Debate

Despite the majority approval, Council Members Jess Robertson and Chris Massoglia voiced continued opposition to the city’s current capital spending trajectory.

Robertson explained that she did not vote in favor of the 2025–2029 CIP when the budget was originally adopted and maintained concerns about increasing debt obligations. She emphasized her preference to “pay off debt before buying more” and cited frustration with the size of recent funding requests.

“In reference to the August 11 meeting, I was not one of the council members that recommended using unreserved funds to buy more stuff,” Robertson said. “I was actually one of the council members who recommended paying off debt and not buying stuff until you keep saving money.”

Robertson also expressed concern that Blaine continues to service bond payments dating back to 2013, calling the ongoing debt load “insane.”

Council Member Chris Massoglia echoed Robertson’s position, noting that he also did not support the original Capital Improvement Plan and would be voting no.

Additional Council Actions: Gilberto’s Mexican Taco Shop License Approved

In other business, the Blaine City Council unanimously approved on-sale liquor licenses for both 3.2% malt liquor and wine for Gilberto’s Mexican Taco Shop.

City Clerk Cathy Sorensen confirmed that the applicants completed all required paperwork, submitted necessary fees, and passed a background check conducted by the Blaine Police Department, which found no concerns.

The license is active through June 30, 2026, with eligibility for renewal at that time.

Council Member Massoglia praised the restaurant, calling Gilberto’s “an awesome, authentic taco place” and encouraging residents to visit.

Looking Ahead

The approval of the 2025A bonds reflects Blaine’s continued effort to balance responsible debt management with long-term infrastructure investment. While debate persists on fiscal priorities, city officials emphasize that strategic borrowing remains essential to maintaining Blaine’s growing infrastructure and ensuring sustainable utility operations.

As the bond sale process moves forward, final terms — including interest rate and market demand — will determine the city’s ultimate financing costs. The sale must be awarded within 90 days under the adopted parameters.

MinneapoliMedia