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Municipal Leasing Center
School Bus Leasing
Municipal Asset
Management Inc
A whole new species
of school buses has evolved. New school buses are literally
redefining the transit and shuttle markets, thanks to engineering and
manufacturing and production of commercial buses and chassis.
Years of extensive research, development and testing have enabled school bus to
usher in the creation of a line of buses that delivers on all fronts:
performance, durability and overall value. What makes school buses unique
is that they incorporate the latest technological innovations in styling and
engineering, with the desired North American operator specifications that the
commercial market demands.
We provide Low Tax Free Rates to finance new and used school buses.
Rates change daily so email us for a current no obligation 30 day
quote.
30
Day Rate Quote
State, County, City Governments, Towns, Villages & Boroughs
All Departments & Agencies
Payments annually semi annually or monthly
Cities, Towns, Villages, Boroughs,
Schools, Fire & Police Departments, Volunteer Fire Departments, Water Authorities, Hospitals can utilize the equipment they need even if
it's not in their current budget. Essential equipment such as Fire Trucks,
Police Vehicles, Computers, 911 Systems School Buses, Portable Buildings
and modular classrooms, Road Equipment, Telephone Systems and Energy
Management systems.
Lease purchasing offers another
approach which enables any size
municipality to acquire new equipment which is paid over terms that meet
cash flow objectives and gives the municipality equity with every payment.
The term can match the useful life of the equipment and provides for
ownership at the of the repayment term. Rates so low we
don't dare put them on our website. Just contact us by
email to get a current lease quote from 3 to 10 years.
LEASE
Frank Heeg our Municipal Lease Specialist will give you a quote.
Or call us a 800-949-6685
New and used equipment qualifies. To receive a no obligation proposal email
or fax us a copy of your invoice with complete description of the
equipment
For complete up to date municipal leasing and financing
information
please visit our
Municipal
Lease Financing Center
Frequently Asked Questions About Tax-Exempt Municipal
Leasing
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What is a tax-exempt lease?
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.
-
Who qualifies for tax-exempt financing?
The issuer of a tax-exempt obligation, including a tax-exempt lease,
must be a State or possession of the U.S., the District of Columbia,
or a political subdivision thereof. Political subdivisions include
cities, towns, counties and other municipalities. They may include
other state entities such as school districts, special purpose
districts (fire, parks, utility, water, etc.), hospitals, agencies,
authorities, boards and commissions.
Not-for-profit organizations created under Section 501 (c) (3) of the
Internal Revenue Code do not qualify directly as issuers of tax-exempt
obligations but may be eligible with a sponsoring governmental unit.
Not-for-profit organizations benefiting from tax-exempt leasing
include:
 | Health Care (Hospitals, Clinics, Nursing Homes, Life Care
Centers)
| Education (Colleges and Universities, Preparatory Schools)
| Museums
| Research Centers |
| | |
What are some of the benefits of tax-exempt leasing?
The benefits of a tax-exempt lease include:
| Preservation of capital dollars for other projects for which
leasing is not an option
| Preservation debt limitations does not create long-term debt on
the entity's books
| Enables improvement of cash flow
| Incorporates flexible structuring to meet budget needs
| Low rates resulting from tax-exempt basis
| Offers an alternative financing option without voter approval
| Provides project financing (including soft costs)
| Spreads out the cost of an asset over the useful life of that
asset or project. |
| | | | | | |
What can be financed on a tax-exempt basis?
Tax-exempt financing is typically utilized for equipment acquisitions.
It may also be used for other capital expenditures, e.g., purchasing
property, implementing of a specific project, or expanding existing
facilities. Both personal property and real property can be leased.
This includes personal property such as:
| Telecommunications Systems
| Computers
| Vehicles
| Energy Management Systems
| Recreational Equipment
| Emergency Services Equipment
| Medical Equipment
| Software
| Modular Buildings |
| | | | | | | |
and real property such as:
| Schools
| Courthouses
| Correctional Facilities
| Central Offices
| Recreational Facilities
| Environmental Facilities. |
| | | | |
Equipment may include:
| Hardware
| Installation
| Training
| Infrastructure wiring
| Maintenance
| Video & multimedia equipment
| Software applications |
| | | | | |
How are tax-exempt leases structured?
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.
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.
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.
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.
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.
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.
How is tax-exempt lease financing arranged?
Tax-exempt financing is typically arranged by means of a formal bid
process.
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;
| Competing demands on capital resources;
| Essentiality of the asset to the basic functions of the entity;
| Useful life of the asset;
| Desirability of matching costs and benefits over time
| Ability to improve bargaining positions with vendors; and
| 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
Municipal Asset Management, Inc.Municipal
Leasing
or call our leasing professional Frank Heeg at 800-949-6685 and let's
discuss your transportation Municipal financing plans.
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