ERIE - The Town of Erie announced Thursday that a bond sale to fund the construction of a new police station and municipal court building has been completed.

The interest rate of the general obligation bonds is 3.24 percent, according to Steve Felten, the town's finance director. Voters had approved in April a bond rate up to 5 percent.

Standard & Poor's has rated the bonds AA+, one level below its highest AAA rating.

The ballot question that was approved established the maximum debt allowable of $6.2 million with a total repayment cost not to exceed $11.6 million. With this bond sale, repayment cost will be $9.8 million.

For a homeowner with a residential property valued at $300,000, it is now expected that property taxes will increase by roughly $22 per year. This amount is lower than the $36 per year amount previously estimated by the town.

"This is a long-term investment with an immediate benefit to the community," said Tina Harris, mayor of Erie. "We promised Erie citizens a good value for their investment, and this is the first phase in delivering on that promise."

Stifel, Nicolaus & Co. Inc. were underwriters for the bonds, and Butler Snow LLP served as bond counsel.