The Chadron City Council has approved issuing $2-million dollars in one-year Bond Anticipation Notes next month for start-up work on the city’s $4-million dollars storm sewer expansion and upgrade project. Another $2-million in notes will be issued this fall.

John Tracek of Ameritas says that while the project will eventually be financed with 15-year revenue bonds, those bonds can’t be issued until the project is finished…hence the need for Bond Anticipation Notes.

Tracek says the reason to split the notes into two parts is because the city doesn’t need the full $4-million right away.

The interest rate on the notes is point-35%, about 1.35% when all costs are added in, with an interest payment at 6 months and one year. The city can call the notes without penalty if it’s ready to issue the bonds before the notes mature.