Marc on Debt
How We Reduce the Debt
To reduce the town’s current debt quicker—and thereby save millions in interest—we must reprioritize our spending.
Our current debt payments are over $9 million per year. Only $2.5 million of that is principal. $3.3 million of the recent sales tax increase is discretionary. It is being spent on unnecessary items, such as $600,000 in property acquisition south of the tracks and a $100,000 Uptown traffic study.
We could easily double our debt payment and still reduce the sales tax by a quarter percent in the first year. This would save an additional $1.25 million in interest payments in the first year alone. With this one simple shift, we could be debt free by 2030 instead of the current projection of 2043. We would save more than $16 million in interest.
Marc Explains the Current Situation
The Town of Normal is $94 million in debt. Marc talks about the accumulation of this debt and the current state, using a graph from the Town's 2016 Financial Trends Report.