Financing Option: Municipal Leasing

Municipal Leasing Alleviates Budget Issues

Due to the economic downturn, cities are turning to parking as a way to generate or increase revenue. With today's budgetary challenges, municipal leasing offers a quick and cost-effective financing option to fund the parking projects. Municipal leasing allows you to align monthly parking revenue with monthly expenses without a large up front capital cost. 

Tight Budget? No Problem.

Traditionally, cities raise revenue through taxes or big concession deals. Raising taxes has a negative impact on the community especially in this economic climate and big concession deals are complex and take many years to complete. Municipal leasing is an attractive option to fund parking projects that provide a high return on investment (ROI) and can be self-funded out of incremental revenue increase without the up-front capital expenses.
What is Municipal Leasing?

Municipal leasing is a form of specialized financing that, under IRS provisions, allows state, county, and local governments to acquire essential-use assets at very low interest rates.

  • Municipal leases are lease-to-own
  • Municipal leases have no buyouts and no residuals
  • “Non-appropriation” language is included, meaning the lease can be terminated without penalty and the equipment returned, in the event funds are not available for any legal reason
  • Leases can be pre-paid, so you are not “locked in” should other funding become availableEquipment is sold directly to your government agency, exactly as if you had purchased for cash

Why Lease Pay Stations?

Municipal lease-to-own financing is a perfect option for parking pay stations. Pay stations generate revenue and can essentially fund the purchase with incremental revenue when budgets are limited or when there are other unexpected situations.

  • No down payment required on municipal leases 
  • Municipal leases do not create balance-sheet "debt"
  • Lowest cost financing
  • Title passes at delivery - your government owns the parking pay stations from the day they are delivered
  • Flexible payment terms

Need More Information?

Learn how Asbury Park, NJ recently implemented paid parking to generate revenues through municipal leasing:

View the recent recorded webinar entitled “Generate Revenue through Self-funded Parking: How Leasing Options can Alleviate Budget Issues”.