The Bellevue City Council on Tuesday approved the issuance of more than $13 million in bonds to repay debt on two outstanding projects.

The issuance of bonds will save the city more than $1.5 million in fees and interest rates over the next 22 years because of its solid financial position, and the beneficial nature of the current bond market present.

“This is an indication of the strength of the city,” said City Manager Steve Sarkozy. “We are very conservative in our financial assumptions. The city is a proven steward of the tax dollars provided to us.”

Finance Director Jan Hawn said the assumption when the council passed the ordinance in July was a savings in the area of $875,000, but since then the bond market has improved. The city was able to issue the bonds at an interest rate of 3.2 percent, a vast improvement on the 5 percent rate attached to the bonds this issuance will refund.

The city has continued to elevate its financial position throughout the last decade, and its record with state auditors has assisted in that rise. Bellevue is one of three cities in the top 10 population in the state that has sailed through state audits without any problems for the last seven years, Hawn said.

The bond proceeds will refund two outstanding issuances of Limited Tax General Obligation Bonds: the 1998 Bellevue Marina purchase and the 2002 purchase of land underneath the Meydenbauer center for future expansion. The new bond issuance will save $55,000 annually in debt service payments for the city.

“It showed significant savings, and it was the right thing to do,” Hawn said.

Nat Levy can be reached at 425-453-4290.