A lower-than-anticipated interest rate on a $6 million public safety general obligation passed by voters in May will save the city $377,000.

City Finance Director Troy Tymesen told the City Council Tuesday that the secured interest rate through Mountain West Bank is 2.05 percent. The projected rate was 2.96 percent.

"It's phenomenal and it's savings we can pass along to taxpayers," Tymesen said.

On May 19, Coeur d'Alene voters approved the $6 million, 10-year public safety bond to fund needed capital expenditures for the police and fire departments. The general obligation bond replaced a $7 million, 10-year bond approved by voters in 2005.