Finance Your Electronic Plan Solution with Avolve Financial Services (1/2)
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Download: Avolve Financial Services Version: 0.1 Updated: April 22, 2010 Size: 115.62 KB |
| Description: Our finance program to help your organization with payment concerns |
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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
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