Baystone Provides Equipment Financing Resources
Dramatic images of a girl missing near Dubberly, Louisiana, captured national headlines this fall. The child had been lost for more than 24 hours in dense woods when a drone with thermal imaging located her laying on the ground, motionless, in the darkness of night. Drone video then recorded the suspenseful moments when rescuers reached her and she was awakened, unharmed.
In this case, the device was provided by a private drone company, underscoring the growing reliance on drones by first responders nationwide. These unmanned aircraft have quickly become indispensable tools for local, state and tribal governments, marking a significant advancement in public safety operations.
“There is continuing demand for financing traditional equipment and property required for government services, everything from school buses to snowplows,” said Evan Howe, director of Baystone Government Finance. “But the list of assets that are needed is evolving as community needs change and technology advances.”
Baystone primarily provides financing through tax-exempt municipal leases, typically structured as lease-purchase agreements for acquiring equipment and real property. These leases enable government agencies, schools, colleges, universities and qualified non-profits to “stretch” their budgets while accessing newer, more efficient equipment with longer lifespans. Baystone offers financing nationwide, directly to qualified organizations and through relationships with leading equipment manufacturers, dealers and originators.
Newer Equipment
According to the National League of Cities, more than 1,400 police departments in the United States are already using drones for public safety. Law enforcement agencies for tribal governments are also adopting this technology; earlier this year, a drone from the Muscogee (Creek) Nation Lighthorse Police Department assisted in a successful rescue during an endangered missing person’s case near Wilson, Oklahoma.
Firefighters are also benefiting from drones, not only to combat wildfires but to respond effectively to structural fires. In October, a police drone in Lawrence, Kansas, provided firefighters with vital information for fighting a blaze in a downtown tower.
Brittney Kohler of the National League of Cities noted in a recent article that local governments are using drones for a variety of purposes beyond public safety, including inspections of bridges, dams and other hard-to-reach infrastructure. States are also adopting this technology; for example, Maryland has announced plans to use drones for delivering medical supplies to remote communities on its Eastern Shore.
In recent years, several relatively new categories of equipment, beyond drones, have become indispensable to state, local and tribal government services, with demand expected to grow. Key trends include:
- Enhanced security systems: Schools and government organizations are adopting advanced security systems, some powered by artificial intelligence (AI) technology.
- Sustainable fleet upgrades: Many jurisdictions are expanding their fleets with electric and hybrid vehicles while investing in electric vehicle (EV) charging infrastructure.
- Modernized law enforcement tools: Police departments are replacing aging patrol cars with newer models with improved camera and surveillance features and are also investing in body cameras.
- Energy-efficient solutions: Government agencies and schools are switching to energy-efficient systems such as modern heat pumps, light-emitting diode (LED) technology, and solar power installations.
These are just a few examples of newer equipment needed by state, local and tribal governments. For a comprehensive overview and downloadable flyer, visit Baystone’s new tax-exempt municipal leasing section.
Recurring Needs
Modular buildings have provided flexible classrooms and office space for decades. However, Baystone has seen a rise in requests for financing them as organizations adapt to changing requirements and shifting populations, Howe noted.
The range of equipment financed through tax-exempt municipal leases is extensive. It includes computer technology; public works and construction equipment such as garbage trucks and excavators; utility equipment such as water treatment systems and meters; healthcare equipment such as medical imaging systems and surgical supplies; and emergency vehicles such as rescue squads and fire trucks. New and used equipment, as well as real property, may qualify for financing, including less conventional categories, such as artificial turf.
Real property routinely financed through tax-exempt municipal leases includes fire stations, sport complexes and gymnasiums, and administration and shop buildings.
Financing Help
To qualify for tax-exempt financing, an organization must meet certain requirements and the equipment must be considered “essential use” under state law. In its new web section, Tax-Exempt Municipal Leasing: Finance Essential Infrastructure for Sustainable Communities, Baystone explains the requirements and discusses how organizations are using this popular form of public financing.
Baystone Government Finance’s new web resource leverages its expertise in customized, tax-exempt municipal leases for state, local and tribal governments, as well as qualified non-profits nationwide. The resource provides valuable insights on:
- Requirements for tax-exempt financing
- Commonly financed equipment (new and used)
- How municipal leases work
- Real-world benefits for communities
- Annual spending estimates
- Simple steps to “request a quote”
For more information, visit Tax-Exempt Municipal Leasing.
