City catches break on bonding for East 2nd Street project
The Morris City Council briefly debated postponing its planned East 2nd Street infrastructure repairs for a year because of uncertain state funding.
But the council moved ahead, and received another indication Tuesday that it probably made the correct decision.
Thanks to a lower interest rate and some concessions by the bond buyer, the city stands to save about $25,000.
The council approved selling about $1.66 million in bonds to pay for the project, which includes sewer and water replacements and resurfacing and curb and gutter work. The council was expecting to issue about $1.685 million.
The interest rate of 3.25 percent compares favorably to the 3.85 percent rate is received on the Highland Homes Addition work last year.
Todd Hagen, the city's bond expert for Ehlers and Associates, also said the buyer, RBC Capital Markets, took less in its return and paid more than face value for the bonds.