In welcome news for taxpayers, Niles Community Schools sold its bonds at an interest rate much better than school officials originally expected to get.

School board president Greg O’Toole said the interest rate on the $40 million district bonds came in at 3.88 percent — nearly one percent lower than the projection of 4.75 percent.

The school board approved the sale of the bonds Monday to a Chicago investment firm called Hutchison, Shockey, Erley & Co.

O’Toole said it was the bid with the lowest interest cost to the district.

Tom Skarbek, the district’s financial director, said getting a lower interest rate means property owners will be levied 3.4 mills in the first year rather than the original estimate of 3.89 mills.

That means a taxpayer with a home market value of $100,000 would pay about $25 less a year than they would have under the original projection.

O’Toole said it would “save” taxpayers $8.8 million during the life of the bond.

Voters narrowly approved the passage of the bonds during the May election. The money will pay for major improvements throughout the district.

Construction is slated to begin in the spring of 2016.