The Value Lease Program developed provides a way to purchase needed water, sewer, and drain supplies at today's prices and pay for them over a period of time, according to the terms of the lease. In addition to the benefits listed below, this program will often enable an entire project to be completed at one time, allowing you to realize the benefits of your project sooner.
The Value Lease Program Provides These Benefits:
- Stretches tax dollars by having future ratepayers/tax payers pay for supplies as they are being used rather than making the current ratepayers/tax payers pay the entire purchase price today.
- Does not create long-term debt since repayment is subject to future appropriations which are not guaranteed or secured.
- Enhances cash flow. Leasing allows acquisition costs to be spread over several fiscal periods.
- Is a hedge against inflation. Materials acquired at today's prices are paid off with less-valuable future dollars over the term of the lease.
- Flexible terms. Lease payments can be monthly, quarterly, semiannual or annual.
- Provides ownership. Title must pass to the lessee.
- Low fixed-rate financing. Since the interest earned on a municipal lease is tax exempt, savings in the form of lower rates are passed to the lessee.
- Alternative financing without voter approval.
- It's easy. We can arrange a leasing program for the purchase of all your water, sewer, gas and drain products.