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36 <br /> Bob Jessup said the purpose of this presentation is to provide the Board with information <br /> they should consider when deciding whether or not to pursue a bond. <br /> 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 /> Bob Jessup said revenue bonds occur when the funds borrowed for a major enterprise <br /> like a water and sewer system or an electric system, are paid back with revenue from the <br /> enterprise. He said Orange County doesn't have any big revenue-producing enterprise so this <br /> isn't really an option here. <br /> Bob Jessup said installment financing is when money is borrowed, the facility is built, and <br /> the lender is given a deed of trust on the facility. He said this is the largest and most common way <br /> North Carolina local governments borrow money. He said the county does spring financing every <br /> year which is for installment financing. He said it requires a public hearing and is a Commissioner- <br /> driven approach. <br /> Bob Jessup said general obligation bonds involve levying taxes as much as necessary to <br /> repay the bonds. He said this requires asking the voters in the county to approve the borrowing <br /> of this money. <br /> 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 />