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Asset
Categories:
 Medical
Equipment
Hospital Equipment
imaging Equipment
Fire Engines
Fire Stations
Ladder Trucks
Pumpers
* Remote - Water Meter Readers
* Jail Facilities
* Police Cars
* New & Used Fire Trucks
* Fire & Safety Equipment
* Communication Equipment
* Video Equipment
* Ambulances
* Medical Equipment
* Blood Analyzers
* CAT Scan Machines
* Garbage Trucks
* Garbage Handling Equipment
* Street Sweepers
* Excavators
* Bulldozers
* Maintainers Street
* Heating & Air Conditioning Equipment
* Self Contained Breathing Apparatus
* Libraries
* Education Equipment
* Computer Hardware & Software
* Word Processors
* Generators
* Telephone Systems
* Energy Management Systems
* Sewer Treatment Equipment
* Fresh Water Treatment Equipment
* Rescue Tools
* Airport Equipment
* Parking Meters
* Material Recovery Equipment
* Portable Buildings
* Copiers
* Service Contracts
* Gas Conversion Equipment
* Improvement Projects
* Buses |
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Municipal Asset Management, Inc.
Municipal
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Fire and Police Station
Financing
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Terms 2 years to 15 Years
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Operating Leases for
Modular Buildings Fitness Equipment
Printers and Copiers
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Tax Exempt Leases for
Municipalities
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501c3 Non Profit Leasing
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Annual Payments in Arrears
for Fire and Police Departments
and Cities, Towns, States, Villages, Boroughs, Authorities
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Lease Purchase Leases with $1.00
Buyout
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Fire and Police Vehicle
Financing
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Hospital Equipment Leasing
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School Bus Leasing
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Leases from $25,000
to $20,000,000.
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Frequently Asked Questions About Tax-Exempt Municipal
Leasing
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How are tax-exempt leases structured?
A tax-exempt lease or lease-purchase agreement is an installment
purchase, conditional sale or lease with an option to purchase for
nominal value. It may also be referred to as a municipal lease.
Tax-exempt leases are structured as a series of one-year renewable
obligations that are subject to the governmental entities ability to
appropriate funds for the continuation of lease payments. Payments
constitute a current expense of the lessee and, in the event that
sufficient funds are not available for payment, the agreement is
terminated and the equipment is delivered to the lessor.
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What is a non-appropriation clause?
A non-appropriation clause enables the lessee to terminate the lease
agreement at the end of the current appropriation period without
further obligation or penalty. This may be done only in cases where
the lessee was unable to obtain funding for future payment obligations
on the lease. Typically, the clause will contain a 'best efforts'
requirement whereby the lessee must use its best efforts to obtain the
necessary appropriation for the lease payments. The non-appropriation
clause enables the lessee to account for the lease obligation as a
current expense instead of debt.
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What is a non-substitution clause?
A non-substitution clause maintains that if a lease is terminated for
non-appropriation, the lessee may not replace the leased equipment
with equipment that performs the same or similar functions.
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Who owns the equipment under a tax-exempt lease?
Title may either be retained by the lessor until all payments have
been received or may be granted to the lessee at lease inception. In
this case, the obligation is secured by a 'perfected' first security
lien on the equipment. In most cases it is preferable to pass title up
front to avoid any potential tax issues.
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Who is responsible for maintenance, insurance, property tax and
other operating expenses?
A tax-exempt lease is a 'net lease,' which means that the lessee is
responsible for these types of expenses. However, the lessee may
contract with the equipment supplier to provide maintenance and other
services. These costs may be included in the financing.
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What is the maximum finance term?
The term of the lease may not exceed 120% of the average reasonable
expected economic useful life of the property or project being
financed.
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How is tax-exempt lease financing arranged?
Tax-exempt financing is typically arranged by means of a formal bid
process.
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What factors should be considered in deciding when to use a
tax-exempt lease?
For any asset acquisition decision, the principal financial objective
is to obtain the use of the asset for the lowest possible total cost,
as measured over the period the asset is to be used. Other factors
affecting the selection of a financing option which should be
considered by a governmental entity include:
| Availability of cash at the time of procurement;
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| Competing demands on capital resources;
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| Essentiality of the asset to the basic functions of the entity;
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| Useful life of the asset;
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| Desirability of matching costs and benefits over time
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| Ability to improve bargaining positions with vendors; and
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| Political attitudes toward debt financing. |
For a variety of needs and circumstances, tax-exempt lease
financing provides a governmental entity with an alternative to
purchasing an asset with cash, acquiring its use for a period of time
through a true lease or issuing bonds
Call for complete Quote
Municipal Asset Management, Inc.
800-969-6685
or email our Municipal Leasing Specialist
Frank Heeg
Vice President
Municipal Asset Management, Inc.
HOME
Municipal
Asset Management, Inc.
Over Thirty Years of Industry Experience
800-949-6685
or email us at
Lease
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