Serving State, Local, Native American and Federal Organizations with a Variety of Financing Programs
Municipal leasing is a form of financing that involves the financing of property and equipment utilized by a local or state government organization and a funding investor. The firms that invest in municipal leases are banks, insurance companies, finance and leasing companies, and individual investors. The key to a successful municipal lease is a thorough understanding of the transaction coupled with the capability to professionally structure, document and package the transaction.
The network of investors that Everest utilizes for its funding activities are astute sources that are in the municipal funding market daily, and are providing in excess of $1.5 billion of funding annually to this market.
Municipal leasing fills the gap when the property to be acquired does not merit the requirements of a bond issue and its associated costs; and when the requirements for obtaining a bank loan may present valid legal concerns.
The primary use of municipal leasing is to acquire property or equipment too expensive for a cash purchase, but too small to justify the time and expense of a bond issue. Thus the types of property acquired via municipal leasing can range from: fire trucks; road maintenance equipment, police cars and broadcast base station; telephone systems; broadband installations; buses; sanitation trucks; water, gas, and electric utility property; computers and office equipment. It is simply a matter of convenience and cost.A brief amount of information pertinent to these various entities is outlined below.
Federal Leasing As Federal budgets continue to increase, leasing allows the government to acquire necessary assets today and pay for them over time.Leasing products include: Lease To Ownership - allows the federal agency to lease the equipment for a specific term and own the equipment at lease end. Lease With Option to Purchase - allows the agency to lease for a specific term and purchase, renew or return the equipment at lease end. Straight Lease - allows the agency to lease the equipment for a stated term and at lease end either renew or return the equipment.
Municipal Leasing Often referred to as a tax exempt lease purchase, a municipal lease purchase allows municipalities to acquire equipment on a 100% financing basis without creating a debt obligation, as payments are subject to annual appropriation. Interest paid on such leases is exempt from federal and state income tax which thereby reduces the municipality’s effective interest cost. Alternatively, municipalities for certain types of equipment will enter into true leases which will allow them to purchase the equipment for its then fair market value, renew the lease or return the equipment.
Native American Leases Everest understands the special structures allowed under current tax law in providing financing to Native American tribes or tribal businesses. Products include tax exempt lease purchase structures as well as long term rental programs including purchase options at fixed amounts or fair market value.
Some of the equipment leased under these programs includes:
School Buses Police Cars Police Broadcast Systems Computers Software Water Utility Equipment Fire Engines Security Systems Surveillance Equipment Headend Equipment Telephone Systems Furniture Cafeteria Equipment HVAC Equipment Maintenance Vehicles Road Equipment Electric Utility Equipment IT Equipment Lighting Systems Casino Equipment
Please call to discuss your specific requirements.
