The City of Nogales finances the cost of its capital improvements through bonds and lease purchases. Both of these financing options are a responsible, effective and affordable way to pay for the purchase costs over time just like a homeowner does with the purchase of a house or car. The alternative is to pay cash upfront. Just like homeowners, the city is not in a position to pay cash for many capital improvements that cost several million dollars.
Capital improvements include road resurfacing, water and sewer line replacements, and park improvements.
To calculate a per capita figure to better illustrate what it costs the City per resident the following formula is used:
Sales Tax Collected for July 1, 2013 to June 30, 2014: $10,959,179 / 20,456 = $535.75 per citizen
Outstanding Debt as of June 30, 2014: $61,986,649 / 20,456 = $3,030 per citizen