Municipal Lease Purchase | Municipal Leasing | Tax-Exempt Leasing
Municipal Tax-Exempt Lease Purchase Financing allows state and local government to use annual revenues to make payments for any type of essential use equipment and/or facilities. This financing method is a popular alternative to purchasing an asset with cash, using an operating lease, or issuing bonds.
Who's Eligible to Benefit from Utilizing Municipal Lease
States and Local Governments including Political Subdivisions: Cities & Counties, Public Schools, State Universities, Fire Protection Districts, Police Departments, Ambulance Districts, Public Utility Districts, etc. Also, 501C3 Not-For-Profit Organizations: Charitable, Religious & Educational Entities, Not-For-Profit Hospitals and Private Schools...
What Equipment is Eligible for Municipal Leasing?
Any essential equipment - such as Vehicles, Telecommunications, Computers & Software, Copier & Office Equipment, Safety Equipment, Energy Management Systems, Medical. Modular Buildings, etc.
Also, Real Property -such as School Facilities, Courthouses, City Halls, Hospitals, Nursing Homes, Public Utility Facilities, Libraries, Airports, Recreational & Port Facilities...
We Can Quickly Streamline Tax-Exempt Leasing for Your Organization!
Municipal Officials, Equipment Suppliers, Banks, Alternative Investors, and Equipment Leasing Brokers rely on Mosaic International’s responsive and knowledgeable municipal leasing specialist to quickly quote, structure and fund Municipal Tax-exempt Lease Purchase Financing.
Mosaic International will provide a competitive and flexible equipment lease structure on new and used equipment including real property ranging from $10,000 to $75 million. Our Municipal Leasing specialist has over 20 years of experience in structuring Municipal Leases and is available to answer your questions, address your concerns, and provide competitive Municipal Lease Purchase Quotes, Municipal Leasing Proposals, and Tax-Exempt Lease Purchase Funding. Contact us today!
Next Step for Assistance...
Equipment Manufacturers and Suppliers, Municipal Officials, and Equipment Leasing Brokers are invited to contact us for immediate assistance:
Request a Municipal Lease Quote / Proposal
Receive Fast Funding for the Majority of Municipal
Lease Purchase Requests
Get your Municipal Lease Questions Answered
Have a Financing Programs Customized for your Organization
Key Features of a Municipal Lease
Fast, simple & cost effective. Lease approvals and documentation are very inexpensive to initiate. Lease transactions can be approved and lease documentation supplied within 3-5 business days. Lease Purchase transactions can normally be finalized within 7-10 business days.
100% financing to include delivery and installation costs. Vendors are paid promptly upon funding of the lease.
Equipment and Real Property financed through a tax-exempt lease may be funded into escrow to facilitate project financing or progress payment requirements.
Tax-exempt interest. Lease payments include principal and an interest portion. The IRS has determined that interest paid in this manner is exempt from federal and state income tax. This means the municipality can take advantage of lower interest costs.
No debt created. Lease payments are subject to annual appropriations, which means, the obligation is not subject to statutory debt limitations. Since no debt is created, municipal leases do not require voter approval.
Budget enhancement. Leasing allows public agencies to acquire needed improvements now rather than wait until the next FY or beyond.
Leveraged dollars. Leases may be designed to match finance terms to the expected useful life of the asset and spread the cost over a multi-year period.
Flexibility. Payments may begin at closing, upon installation, or deferred up to six months. In addition, they may be made in monthly, quarterly, semi-annual or annual installments.
The Municipal “Tax-Exempt Lease Purchase” Agreement
Not all equipment acquisitions, budgets or equipment finance agreements are the same. Municipal lease financing has distinctive advantages over commercial equipment leasing.
The municipal lease includes termination for non-appropriation language. The non-appropriation clause, in cases where the lessee is unable to obtain funding for future payment obligations on the lease, enables the lessee to terminate the lease agreement at the end of the current appropriation period without further obligation or penalty.
A municipal lease is referred to as a “municipal lease purchase”. During the term of the lease, the municipality holds the title to the leased equipment while the lessor holds the security interest. It is a full payout contract to purchase the equipment rather than a series of rental payments as with traditional commercial leases. The financing is structured so that there is no residual value, balloon payment or purchase option to consider.
A Municipal lease is also referred to as “tax-exempt” because the interest income on a municipal lease is tax exempt to the lessor. The municipality benefits when the lessor passes these savings on to the municipality in the form of a lower interest cost.
Municipal lease payments build equity in the future unencumbered ownership of the asset. Without penalty, the lessee has the option of purchasing the equipment outright, at any time, for a predetermined purchase price consisting of the remainder of principal and any accrued interest.
Mosaic International has been specializing in Municipal Lease Purchase Financing for over 20 years. We can help you navigate the process. From answering your questions, quoting, proposing, generating and signing the lease agreement, to purchasing the equipment that you need, we’ll be there for you from start to finish. Friendly and knowledgeable assistance is only a call away. Call 1-800-805-1969 Ext.1