RTC seeks $500 million in credit for new projects

Stephen Curran

Friday, July 9, 2004 | 8:54 a.m.

The Regional Transportation Commission on Thursday approved a plan to request a $500 million line of credit to pay for future land purchases and infrastructure improvements.

The RTC board, which unanimously approved the plan, must now take its request to the Clark County Commission, which is expected to issue the debt at its July 20 meeting, Terry Cordell, chief financial officer of the RTC, said.

If approved, the RTC could have access to the money, which would act as a reserve fund for the agency to dip into as needed, as early as October, he said.

Having as much as $500 million on tap -- the highest debt limit in RTC history -- would also allow the agency to secure the projects at a lower cost, he said.

"With land prices rising, when we see land, we want to be able to buy it," Cordell said. "It (the money) gives us the flexibility to be able to pay for these projects."

Cordell called the county commissioners' approval a "formality" and said the RTC has begun comparing rates from banks the county has previously used.

RTC Director Jacob Snow said "out of sight" land costs could make already costly improvements even more expensive if the debt authority is denied.

Of the total, $300 million would be set aside for street and highway projects and the remainder would be used for transit improvements.

Cordell said the RTC anticipates that, once the debt is issued, it would be paid off using a combination of long-term bonds and grants currently being considered. The remainder would be paid using motor vehicle, sales and jet fuel taxes.

Much of the money would likely be earmarked to build new transit terminals, subsidize a planned extension of the Las Vegas monorail to downtown and replace the county's aging bus fleet, Snow said.

Snow said he expects the new transit stations to be paid for with federal grants. The rest, he said, will be paid through taxes.

Cordell in May said the RTC expects about $65 million in federal grants for the 2005 fiscal year, which begins Oct. 1.

The debt could take up to 30 years to pay off, but because it would be paid in equal annual installments with a low -- estimated at 1 percent -- interest rate, Cordell said he does not expect it to negatively affect the county's bond rating.

Clark County in June received the highest ratings of any local government for its financial health from two service bureaus that judge fiscal stability.