100% financing, with no deposit , and typically no large initial cash outlays. Through municipal leasing, you can avoid making a large capital outlay and acquire the equipment over an extended period of time.

Flexibility to match payments to seasonal or changing cash flows.

Typically, voter approval is not required to enter into a municipal lease.

The Internal Revenue Code (and amended in the Tax Reform Act) creates non-taxable income for Lessors in municipal lease financing. The Lessor passes this savings on to the Lessee in the form of lower rates. Because municipal leasing provides non-taxable income opportunities for Lessors, the savings can then in turn be passed back to governmental agencies in the form of lower lease rates.

Documentation is streamlined and much simpler than bond issuances.

Issuance costs are substantially lower (or negated entirely) than issuing general bond obligations. Bonding often involves substantial legal fees, underwriting costs and election expenses.

The municipality has the ability to non-appropriate in any given fiscal year. Only the individual fiscal year’s payment obligation counts against the political subdivision’s debt limit. The payments are a current expense item payable through the normal budgetary appropriations process.

By financing equipment, working capital is preserved for better uses of your cash assets.

Equity builds with each payment. At the end of the lease term, full ownership is vested with the municipality, with no additional cost consideration. There is no additional payment required at the end of the term to purchase the equipment.

The municipal entity does not incur the time, expense and political implications of a bond election, as leases may not be considered to be debt. Frequently, the equipment acquisition may be too small to justify bond financing, and yet too large an expenditure for which to pay cash