Conserves budget funds for critical needs. Can permit continued investment of available cash.
Leases spread cost of equipment over useful or economic life of equipment.
Lease financing results in a pay as you use allocation of municipal cash. Municipal leases are not bonded debt and normally do not require voter approval. FMLC leases can provide source of funds for purchase commitments for equipment far in advance of actual delivery, and allows equipment pricing to include purchase discounts for progress or chassis payments to vendor. Fixed rental payments and interest rates for term of lease agreement. Recognizes that the Lessee's governing board will appropriate funding for the lease on an annual basis.