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Municipal Leasing
...A Very Smart Choice
Municipal leasing is "the smart choice"
for acquiring essential and
perhaps
more importantly, expensive public safety (police & fire),
infrastructure, (roads & bridges), construction, school and maintenance vehicles and
equipment.
Funding is getting harder to come by as tax payers are getting squeezed, state
and federal government funding is being cut back or cut off altogether. Inflation keeps the cost of municipal vehicles high and
the maintenance of older, while less
reliable equipment and vehicles continues to rise.
Why continue to fund your department by paying in advance
for all of your capital equipment, when a municipal lease allows you to "pay as you go?"
Matching tax receipts year-by-year to municipal lease payment as they come due
year-by-year.
Municipal Leasing
Spreads the Cost of Capital Purchases
Here's How:
 | Municipal leasing allows governments to spread the cost
of expensive, long-lived equipment and vehicles over their useful
lives and multiple budget periods--instead of paying for everything in advance.
And it just makes sense.
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| Municipal leasing programs provide the lowest cost, non-debt, interest rates available. Municipal leases compare very favorably
to bond rates, but without the extraordinary legal fees, without the
protracted delays and public referendums normally associated with bonds.
On smaller transactions (under $1,000,000) our all-in costs are far lower
than bonds.
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Municipal leases do not create balance sheet debt in part because they are
subject to the annual appropriation process
and (unlike bonds) can be terminated without penalty if funds are not
available for any legal reason.
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| Municipal leases allow governments to match tax receipts to
capital expenditures
for new equipment. A much more conservative budgeting approach. If a new fire truck has a useful life of 15 or more
years, why not pay for it over a longer period? If a new sewer vac is going
to be in service for 8 years, why not pay for it over 8 years? Most
police cars are on the road for 3-5 years, and so on.
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| Buying power. Municipal leases
effectively "multiply" the purchasing power budgeted funds. A
$100,000 annual line item might buy 4 new police cars this year, but
dedicated to a municipal lease, the same series of annual payments ($100,000) could put
18 new vehicles on the street today.
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Ultimate purchasing flexibility. With a municipal
lease you can purchase your vehicles and equipment from the dealer of your
choice, or under any state contract. You negotiate the very best "cash
price" and we base our very low interest rate municipal lease on those figures.
Every vehicle and every piece of equipment is titled to your agency from the day
of delivery. You own this equipment exactly as if your had made a
cash purchase.
Win-win!
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