Eliminate City Debt
Pardon Our Dust
The Team Is working on this particular plank to our Policy.
Feel Free To watch this work in progress and, by all means, feel free to comment or contribute to the discussion.
Over a period of six (6) years I will eliminate the City of Las Vega’s debt service by transitioning from the current "Debt to Fund Services'' revenue and expenditure system to a "Pay As You Go" revenue and expenditure system.
Government creates a budget which details expenditures; Borrows, from lenders, the money needed to fund those expenditures; Spends the money; and then taxes companies, residents and others to raise revenue to pay back the lenders.
Debt Service is the "interest" we pay lenders when we borrow money to fund our government operations and the projects it undertakes. Debt Service may be as much as Ten Percent (10%) of the entire city budget.
We will offer Las Vegas Businesses, who are willing to pay their taxes a year in advance, a nine percent (9%) reduction of that future tax obligation. Those funds would offset the amount we would otherwise pay as interest on our debt.
Those funds would be placed in the Rainy Day Fund and be used for future expenditures, on a pay as we go basis.
That nine percent reduction in taxes will translate into capital that local businesses can use to fund their operations, purchase new equipment, grow their business, increase worker wages, and hire new employees.
As we progress, stage by stage, toward our ultimate goal of becoming "Debt Free", this practice will encourage the bond rating agencies to increase the State's Bond Rating, making it less costly to borrow money, fund projects, or acquire general obligation bonds. Ultimately, this saving will result in the City of Las Vegas having a constant reserve fund.