Tax-Exempt Municipal Leasing

State and local governments in the United States spend $408 billion annually on “fixed assets” such as structures, equipment and software, according to the latest estimates from IBISWorld based on data from the Federal Reserve Bank of St. Louis.

Baystone offers tailored, tax-exempt financing for community infrastructure projects, public facilities, energy-efficient systems, public safety vehicles and equipment, hospitals and healthcare facilities. The list of assets funded is extensive and varied, as all capital projects, new and used equipment and property regarded as “essential use” by state laws governing the organization will be considered.

Infrastructure Improvement: Roads, bridges, water treatment plants.

The goal of many projects financed through Baystone is to equip communities with the infrastructure they need – above and below ground – to address current needs and future growth.

A rural locality, for example, is using dump trucks secured through a municipal lease for work maintaining and repairing hundreds of miles of roads that residents rely upon to reach their workplaces, schools and government services.  A large municipality is benefiting from public works equipment financed through a municipal lease, including heavy-duty trucks, a street sweeper and mower, for road construction, maintenance and snow removal. The lease is helping the locality “stretch” government funding and use newer, more efficient equipment with longer lifespans. Other assets frequently financed for infrastructure improvements include construction equipment such as excavators.

Infrastructure also encompasses a locality’s water supply, which is why Baystone finances water trucks, meters, tanks, treatment equipment, and additional equipment. Thanks to a tax-exempt municipal lease, for example, one water district in the Midwest was able to upgrade its lines to ensure an adequate water supply for current patrons and future growth.

Public Facilities: Community centers, libraries, municipal buildings.

As communities evolve, tax-exempt municipal leases are a vital source of funding for public facilities. These financing solutions are facilitating the construction and acquisition of critical buildings, as well the expansion and renovation of existing structures. They are also providing facilities with equipment essential for their daily operations.

Administrative offices, shop buildings, sports complexes and fire stations are just four examples of “real property” routinely financed through Baystone municipal leases. Many are traditionally constructed buildings, though modular structures have become increasingly popular.

Additionally, tax-exempt municipal leases are financing equipment that public facilities need to serve their constituents. Assets regularly financed this way include copiers, telephone systems, computers and software, servers and other information technology (IT) infrastructure, security systems, mowers, fleet vehicles, refuse trucks, heating, ventilation and air conditioning (HVAC) systems, lighting and roofs.

Energy Efficiency: Solar installations, energy-efficient lighting.

Forward-thinking states and localities understand that sustainability is not a lofty goal ─ it is a requirement for the well-being of their communities. They consider environmental impacts as well as fiscal advantages and other benefits to their constituents when planning new equipment and infrastructure.

Tax-exempt municipal leases from Baystone are helping communities replace aging systems with greener technologies that conserve energy and preserve natural resources. These improvements include energy-efficient HVAC such as modern heat pump systems; heat pump water heaters; LED lighting instead of incandescent systems for illuminating buildings, pathways and streets; and solar panel installations that harness the sun’s energy for power. Increasing numbers of states, localities and tribal nations are also using municipal leases to incorporate electric and hybrid vehicles in their fleets, and finance the requisite charging infrastructure.