Municipal Lease Overview-

A municipal lease is a finance agreement allowing a community to borrow money at tax-exempt interest rates. The repayment of such money is subject to an annual appropriation each year. While this is much like a bond issue, it does not commit the community for more than one year at a time, and it does not require voter approval.

Many communities feel this is a less complicated way to borrow without affecting General Obligation debt limits. The Lease purchase has grown from less than one billion dollar per year market place in 1980 to over ten billion in 1989. These agreements can be put in place quickly and range in terms from 5 to 20 years.

A few projects that are of essential use to the community - examples include city halls, jails, public safety facilities, solid waste facilities, YMCA and not-for-profit facilities, T-Hangars, terminals, cargo facilities, fuel storage tanks, air control towers, etc.