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Unpopular perhaps because it is paid in a large lump sum check as opposed to <br />small additions to each purchase. <br />Requires effort to solicit voter approval. <br />Local property tax revenue growth restrained by constitutional limits. <br />General Obligation Bonds <br />What is it: A certificate of debt taken out by a government body against the value of <br />taxable property in the locality guaranteeing payment of the original <br />investment plus interest by a specific date. <br />Who pays: Debt and accrued interest retired through taxes paid by property owners <br />within the issuers geographic boundary usually over the course of 15 to 30 <br />years. <br />Pros: <br />• Allow for the immediate purchase of land and distribute the cost of acquisition <br />over time. <br />• Ties payment to benefits received. <br />• Generally easier to sell because of comparatively reduced risk of default. <br />• Cheaper to borrow money since interest rates are generally lower than revenue <br />bonds. <br />• Allow services to be provided on the basis of need not profit. <br />• Excluded from the tax cap imposed under the Oregon Constitution. <br />• Citizens participate directly in acquiring open space through their vote. <br />• Current bond market is desirable because interest rates are low. <br />Cons: <br />• Increases the local tax burden. <br />• Contributes to the legal debt of the issuing community. <br />• Competes with other local services that may rely on bond revenues. <br />• Requires effort to solicit voter approval. <br />• Can be costly since interest charges are tacked onto the cost. <br />• Anti -tax, anti - government sentiment could work against passing a bond measure. <br />Use Taxes <br />What is it: Tax on services <br />Who pays: Purchaser of services <br />Revenant Types: <br />a) Transient Room Tax <br />b) Car Rental Tax <br />Open Space Acquisition Funding and Protection Strategies - Draft October 2001 2 <br />