Features & Benefits

Benefits for Traditional Local Unit Conduit Borrowing/Pooled Governmental Loan

• Economies of scale
  • Smaller amounts “bondable” in today’s attractive market
  • Cost of issuance shared among participating local governments
  • Cost of issuance minimized through “shared” documents and single POS/OS
• Negotiated bond sale
• No shared liabilities
• Flexible maturity schedule
• Depending on the nature of financing, a County Guaranty may be offered, enhancing the credit and lowering debt service

Benefits for Traditional Local Unit Lease Conduit Borrowing/Pooled Lease Revenue Bonds

• 5% down payment exemption (not applicable for school districts or fire districts)
• Lower interest costs
• Exempt from budget (operating) cap and tax levy cap (not applicable for school districts or fire districts)
• Not included in statutory debt limitation
• Economies of scale
• • Smaller or traditionally “non-bondable” equipment can be financed
  • Cost of issuing MCIA bonds shared among participating local governments
  • Costs of issuance minimized through “shared” documents and single POS/OS
• Negotiated bond sale
• Flexible repayment schedule
• No shared liabilities
• Depending on the nature of financing, a County Guaranty may be offered, enhancing the credit and lowering debt service

County Guaranteed Leasing Program (CGLP)

• Easy and fast access to tax-exempt leasing for capital equipment
• No 5% down payment required for local government capital financings (not applicable for school districts or fire districts)
• MCIA capital lease financings are not part of the statutory net debt for local governments
• Flexible Repayment Schedules: Principal repayments are not subject to Local Bond Law amortization requirements (i.e. “2 over 1 rule”)
• County guarantee provides the CGLP with a AAA credit rating (i.e. low-cost borrowing)
• Minimum fees to local borrowers