Questions About Municipal Leases?
We have answers.
1How can a municipal lease benefit us?
Tight budgets for municipalities have always been a challenge and are proving to be even more challenging today. Using a lease can get you the asset your municipality needs while spreading the cost over the useful life of the asset. Often, 100% of the cost of the asset can be financed. The interest rates are exempt from Federal Taxes which translates to a lower interest rate to you. They are far simpler, take less time to close, and less costly compared to bond issues.
2How do we apply?
Call or email us. We will discuss what you need, the terms that best fit that need, gather additional information and then move forward with the financing.
3When is a bond issue appropriate vs. a municipal lease?
For larger projects that have voter support a bond issue may be the best financing method. Bond issues can provide amortizations over 30 years with fixed interest rates. Bonds tend to be used by the larger municipalities that can obtain or already have an investment grade rating. Often bonds are secured by a pledge revenue stream or a general obligation pledge.
4Can funds already spent be reimbursed?
Yes. The amount reimbursed may be subject to the specific financing, however, in many instances 100% of the spent funds are eligible.
5Are there other costs associated with a municipal lease?
In most cases there will be no other costs associated with the lease. For larger, more complex needs, there may be additional costs such as surveys, title work, and additional legal fees. Usually these can be included within the lease.