Syracuse of Solar and Wind of Central New York, Municipal Financing

Advantages to the Municipality

Written by Syracuse Solar and Wind Installer

Advantages to the Lessee

Municipal Lease/Purchase financing is designed to compliment, rather than replace bond financing. As governmental units have become cognizant of the advantages of Municipal Lease/Purchase Agreements over bonds, they have increased their utilization of this unique financing vehicle to satisfy many of their equipment and facility financing needs. The advantages of Municipal Lease/Purchase Agreements are as follows:

What type of equipment should I consider Solar leasing?

Written by Syracuse Solar and Wind Installer

Virtually any type of essential use solar equipment may qualify for a Lease/Purchase Agreement. In general, terms may be offered from two to ten years or more, depending on the useful life of the asset.

Why should Government Officials consider Lease/Purchase Agreements?

Written by Syracuse Solar and Wind Installer

Lease and Purchase Agreements

Lease/Purchase Agreements should be used to compliment, rather than replace, traditional bond financing. Many times Lease/Purchase Agreements can be a more timely, efficient, and cost effective means of financing essential equipment and facilities. In addition to the low cost of issuance, uncomplicated financing documents save both administrative and legal expenses. For issuers expecting to do multiple transactions over a period of time, additional savings can be attained by use of an Advance Payment/Purchase Agreement.

Who is eligible to utilize tax-exempt leasing?

Written by Syracuse Solar and Wind Installer

Tax Emempt Leases

Basically, any municipality or political subdivision who can issue tax-exempt securities may utilize tax-exempt leasing. Examples: State & Local government agencies, special assessment districts, public hospitals, fire districts (including volunteer departments), public transit districts, school districts, etc. The interest can also be done at a taxable rate.

Why is a Municipal Solar Lease/Purchase generally not considered debt

Written by Syracuse Solar and Wind Installer

A Municipal Lease/Purchase Agreement is a yearly obligation renewable at the option of the lessee. The obligation is subject to the annual appropriation of funds by the borrower. If funds are not appropriated in a given year, the Municipal Lease/Purchase Agreement may be terminated. While voter approval is generally not required for a public agency to enter into a Municipal Lease/Purchase Agreement, terms of the transaction are fully disclosed in their annual audited financial statements. Due to a nonappropriation clause in the contract, payments are considered an operating expense rather than debt.

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What is a Municipal Solar Lease