Water bonds

Illinois' Grand Prairie Water Commission went to market Monday in a debut deal as it builds infrastrcture linking the Joliet area with Chicago's water system.

The ever-rising cost of projects is the number one financial challenge for municipalities, according to the latest survey from the National League of Cities.

Two triple-A bond deals from the Lone Star State to finance water-related projects are scheduled to price this week in the municipal market.

Utilities, and the local governments and states that house data centers, are wrestling with policy questions about who should cover the costs of the projected spikes in water and electricity demand.

The rating agency's review was triggered by the city's move to effectively end plans for a seawater desalination project that has $235 million of bonds outstanding.

With the estimated cost rising to $1.2 billion, the city council took action to end planning for the project, sparking concerns about outstanding bonds.

The Rhode Island Infrastructure Bank has issued a billion dollars of debt to promote clean water. 

The House cuts are less severe than those proposed in President Donald Trump's 2026 budget.

Michigan's Great Lakes Water Authority went to market in June with roughly a billion dollars of bonds, part of a complex transaction that included a tender.

Deals from two small Michigan cities show how bond-funded improvements are used to keep up with water infrastructure replacement needs.