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36 <br /> 1 Bob Jessup said the purpose of this presentation is to provide the Board with information <br /> 2 they should consider when deciding whether or not to pursue a bond. <br /> 3 <br /> 4 Slide #2 <br /> Revenue bonds <br /> 3 primary <br /> ways North <br /> Carolina local Installment financing <br /> governments <br /> borrow <br /> money General obligation <br /> bonds <br /> 5 <br /> 6 Bob Jessup said revenue bonds occur when the funds borrowed for a major enterprise <br /> 7 like a water and sewer system or an electric system, are paid back with revenue from the <br /> 8 enterprise. He said Orange County doesn't have any big revenue-producing enterprise so this <br /> 9 isn't really an option here. <br /> 10 Bob Jessup said installment financing is when money is borrowed, the facility is built, and <br /> 11 the lender is given a deed of trust on the facility. He said this is the largest and most common way <br /> 12 North Carolina local governments borrow money. He said the county does spring financing every <br /> 13 year which is for installment financing. He said it requires a public hearing and is a Commissioner- <br /> 14 driven approach. <br /> 15 Bob Jessup said general obligation bonds involve levying taxes as much as necessary to <br /> 16 repay the bonds. He said this requires asking the voters in the county to approve the borrowing <br /> 17 of this money. <br /> 18 <br /> 19 Slide #3 <br /> Don't worry about collateral <br /> 20-year financing <br /> Why use <br /> GO bonds? Slightly better interest rates <br /> And the #1 reason, public <br /> buy-in <br /> 20 <br /> 21 <br />