Following an evaluation by Moody’s, a leading credit rating agency, the city of Bainbridge Island has taken steps to refinance its 2002 and 2004 general obligation bonds.

The city sold a sum of $5.2 million of tax-exempt refunding bonds.

The sale will grant Bainbridge taxpayers a net savings of about $576,000 in lower debt service over the next 10 years, city officials said.

“We are pleased to take advantage of the current low interest rate environment, and be able to pass along these savings to local taxpayers through lower annual tax levies,” said Ellen Schroer, the city’s finance and administrative services director.

“It is our goal to prudently manage the resources our community has entrusted us with, and refinancing debt at lower interest rates has helped achieve that goal,” she added.

The city enlisted Seattle’s D.A. Davidson & Company as the financial advisor in the transaction, while Piper Jaffray was hired on as the bond underwriter.

Moody’s Investors Service recently rated the city an Aa3 for the impressive $5.6 million the city had in unlimited tax bonds. This rating has contributed to the successful sale of the bonds. Moody’s cited continued improvement in the city’s finances, strong reserve levels, low direct debt burden and a strong management team as factors for the rating.