Morris City Council authorizes $1.47 million bond sale to help fund new municipal liquor store

The Morris City Council on a roll‑call vote authorized the issuance and sale of $1,470,000 in general obligation tax‑abatement bonds (series 2025A) to help finance construction of a new municipal liquor store.

Nick Genna, financial adviser to the city, told the council the city received three competitive bids and that Baird submitted the low bid, ‘‘They came in at just under a 3.53% interest cost,’’ which produced a calculated true interest cost of 3.54%. Genna said the principal amount was resized to $1,470,000 to reflect the bid results and to deliver the funding expected under the presale authorization. He presented an estimate for average annual debt service of about $136,674 and said the borrowing supplements roughly $500,000 in liquor‑store cash the city has saved for the project.

Genna also noted that Moody’s affirmed the city’s Aa3 rating and described the competitive sale as producing a favorable spread between bids; the highest bid received was 3.66% and the low bid was 3.53%, a 13‑basis‑point difference.

Mayor Waller asked for the formal motion to authorize the issuance and awarding of the bonds; the motion passed with all council members voting in favor by roll call. Genna told the council the sale is expected to close in early November, with the municipal account receiving funds at closing.

Why it matters: the bond proceeds will cover construction costs while preserving the liquor fund’s operating capacity, Genna said. Council members asked about repayment and cash reserves; Genna explained that the liquor fund’s typical operating surplus has historically exceeded annual debt costs and that existing reserves provide additional coverage.

The council adopted the authorization during the meeting and instructed staff to proceed with bond closing and related steps.