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Low interest rate, municipal lease purchase financing can provide a clear path to procurement and implementation. Avolve Financial Services™ is offered in partnership with Government Capital Corporation, a Public Finance investment firm providing professional financing services to governmental entities. Are you ready to offer the benefits of e-government to your constituents, but are delayed due to budget restraints? One of the most common objections to moving forward with procuring new technologies is lack of funding.

What is Tax-Exempt Lease?

Tax-exempt municipal leases are fully authorized by federal and state codes, and are structured as a series of one-year renewable obligations subject to the agency’s ability to appropriate funds for the continuation of lease payments. Payments constitute a current expense of the agency. In the event that sufficient funds are not available for payment (non-appropriation), the agreement is terminated with no further obligation or penalty.

The Lease-Purchase Agreement (LPA)

• Results in the purchase of an asset through periodic payments with the agency owning the technology assets from inception. Not a “true lease” or rental.
  
  
• Properly structured with annual appropriation provisions, a LPA constitutes a current operating expendi­ture and is not statutory debt.
  
  
• Can be used for any technology assets or related services which the agency has the authority to acquire or contract for, including services and maintenance.

Advantages To Your Agency

• Funds 100% of the project, first pay­ment can be deferred into next year


• Allows the agency to move forward today


• Take advantage of bundled discounts (e.g. maintenance pricing)


• Preserves current budgets


• Leverages operational efficiencies by better matching cost with benefit


• Straight-forward approval and documentation process that runs concurrent with the standard Avolve contracting process – this means no inherent delay

Who Qualifies?

States or political subdivisions of states—cities, towns, counties, school districts, special purpose districts (fire, parks, utility, water, etc.), hospitals, authorities, boards, and commissions—all qualify for tax-exempt municipal leases.

The Municipal Lease Process

Step 1: Once a decision has been made to present a project recommendation to the agency’s board/council, AFS prepares a resolution for consideration.

Step 2: After the resolution has been adopted, AFS prepares documents for signature and review by the lender.

Step 3: Upon receipt of the fully executed document set, AFS creates an escrow account from which proceeds are disbursed.

Sample Project Financing:

• Capital Cost $ 180,000
• Term 5 Years
• Annual Payment $ 43,619.30
• Payments Beginning up to 1 Yr. deferred
• Rates as low as 3.99%

The Value of ProjectDox ePlan Submission, Review and Tracking

• Using digital files drastically reduces paper consumption and the cost to manage and store paper documents.
  


• Citizens have access (24/7) to a secure, fast and convenient system to submit/resubmit plans. No need to drive to the building department, reducing traffic on the highways and greenhouse gas emissions.
  
  
• Centralizing plans and documents gives complete visibility to all departments – parallel review facilitates increased communication, accuracy and reduces/shortens re submission cycle(s).
  
  
• Streamlined processes means buildings are completed sooner and on tax records faster.
  
  
• Jurisdictions remain competitive, can better attract new commercial business.
  
  
• Automated workflow processes provide tools to measure departmental productivity, isolate problem areas.
  
  
• Online plan review allows for telecommuting, trip reductions for citizens and couriers, energy and environmental conservation.
  
  
• Standards-based inter-operability facilitates increased cross-departmental/ agency communication, mutual aid & speeds disaster response and recovery.

About Government Capital Corporation

Government Capital Corporation is a Public Finance investment bank providing professional financing services to government entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings.