- Secured by the promise to raise property taxes, if necessary

• Voters must approve at referendum
• Not necessary to use taxes
• Not required to raise taxes
  The Town of Cary has not raised taxes in 10 years, even after the bond referendum was passed in 1994

• Least costly
  - lowest interest cost
  - lowest issuance costs
  
• General Obligation Bonds are the only choice for financing road and park projects and are the most economical choice for water system improvements.
  

• Roads, parks and aquatics
  - Taxes and fees
  
• Water system
  - Water rates

Cost of Improvements (in millions)

• Total $149.145
  - Parks 10.000
  - Aquatics 10.000
  - Roads 62.635
  - Water system 66.510

Proposed Water Bonds (in millions)

Plant upgrade/expansion cost $69.7

-Apex share, 23%, $16mm, net cost 53.7

Other sources, savings -3.7

Net plant bond needs 50.0

Plus capitalized interest +6.5

Total plant bond needs 56.5

Water Tank needs 10.0

Water system bond proposal $66.5

• Two cent tax increase in 2004
  - 3.7%
  - $40/year on a $200,000 home
  
• Three cent tax increase in 2007
  - 5.6%
  - $60/year on a $200,000 home
  
• Tax impact summary:
  - Five cent total by 2007
  - 9.3% cumulative total
  - $100/year on $200,000 home
  - $8.33 month

• 3.5% or less annual increases
  - For the average user (7,000 gallons per month), this will be a cumulative average increase of 14.1% by 2004, or $3.20 per month