Municipal Leasing Advantages
Municipal lease--purchase obligations are a form of short-term, tax-exempt financing often used by municipalities, school districts and other government entities to purchase essential equipment. They represent a municipality's promise to pay under installment purchase contracts. These obligations are typically incurred by municipalities when they need to purchase equipment and don't want to issue bonds, and don’t have funds appropriated to buy the equipment for cash.
The types of equipment purchased with municipal lease-purchase obligations range from Scoreboards, LED Lighting, Turf Fields, Bleachers and Classroom needs .
- Municipal lease financing can be completed in a fraction of the time it takes for a full bond issuance. This allows agencies and departments to acquire equipment “NOW” when they need it.
- The Leases are structured with a non-appropriations clause, which permits a municipal agency to restructure a contract if funding is not approved in the following years’ budget.
- The Approval can be structured to allow for an Annual Payment in Arrears when a district doesn’t have the appropriated funds.
- Your lease payments are paid annually from current appropriations so they do not create long-term debt.
- Ownership.Equity that builds with each payment: pay $1 at the end of the lease and you own the equipment.
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