LAS VEGAS (AP) — Clark County officials in Nevada have again dipped into the debt reserve account to make a scheduled bond payment for the NFL’s Raiders new home at Allegiant Stadium in Las Vegas.
Clark County spokesperson Dan Kulin said the county pulled $11.7 million from the stadium's debt reserve account to make the $18.6 million payment on Tuesday, the Las Vegas Review-Journal reported.
County officials were expecting to use the reserve account because there are continued shortfalls in room tax revenue, in part because of the coronavirus pandemic. Revenue toward the stadium bond payments is generated by a 0.88% tax on hotel rooms in Clark County.
Officials previously pulled $11.6 million from the reserve account in December to make a bond payment.
“Clark County recently filed a material event notice notifying the market of an anticipated draw on the Stadium Authority bond reserve fund on May 25,” Kulin said. “This action does not constitute a default and was expected in light of the decline in tourism to Las Vegas.”
The debt reserve fund was created to cover two full years of bond payments — $90.2 million — if there was a deficit in room tax revenue, as officials are currently experiencing as a result of the pandemic. Up to $9 million can be deposited into the reserve each year until the two-year cap is met.
Jeremy Aguero, principal with Applied Analysis, said $54.4 million will remain in the fund after this second payment, enough to cover all of the payments through fiscal year 2022. However, Aguero said he does not expect that amount will actually be required.