MCIA Finance Programs

Long Term Bond Programs

  • Traditional Local Unit Conduit Borrowing/Pooled Governmental Loan
  • Traditional Local Unit Lease Conduit Borrowing/Pooled Lease Revenue Bonds

Long term bond programs permanently finance short-term obligations, unfunded bond ordinances, new capital projects and refunding bonds for Morris County municipalities, school districts, local authorities and fire districts. If the project is a refinancing of existing debt (including Bond Anticipation Notes), permanent financing of newly adopted and/or unfunded bond ordinances or a proposed long term lease financing, a pooled application(PDF, 2MB) should be filled out and submitted.

County Guaranteed Lease Program

In an effort to assist municipalities, school districts and fire districts (“Local Units”) with low-cost tax-exempt financing for the purchase of capital equipment, the Morris County Improvement Authority (the “Authority”) created the county guaranteed leasing program (the “CGLP”) in 2004. Since then, the Authority has financed almost $60 million in capital equipment through 179 separate lease transactions for Local Units.

The CGLP allows Local Units to lease capital equipment (e.g. computer equipment, office furniture, vehicles, trucks, fire trucks, buses, police cars, etc.) with financing provided by the Authority’s pre-selected lender, US Bank Equipment Finance (the “Lender”). The MCIA selected the Lender through a competitive process, and negotiated and entered into a master lease agreement.

The strength of the CGLP lies in the County of Morris’ (“County”) guarantee for the repayment of all leases issued through the CGLP. This guarantee, which would be applied in the unlikely event that a Local Unit was unable to make a lease payment, allows the Local Units to borrow at extremely favorable interest rates which are based on the AAA credit strength of the County.

Advantages

  • 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 (“2 over 1 rule”)
  • County guarantee provides the CGLP with a AAA credit rating (low-cost borrowing)
  • Minimum fees to local borrowers

Structure

  • A Master Lessor commits to funding all MCIA/County approved lease transactions based on a County Guaranty of the CGLP
  • There will be a lease agreement between the Master Lessor and MCIA and a sub-lease agreement between the MCIA and each borrower. School Districts and Fire Districts adopt a resolution, and municipalities adopt a lease ordinance authorizing the sub-lease agreement with the MCIA
  • Once the resolution or ordinance is adopted and informal approval is received from the Department of Community Affairs' Local Finance Board, closings can take place within a few days
  • Local entities will go through its normal procedures for procurement of their equipment

The borrowing process is easy, efficient and cost effective. To apply, please complete the Authority's one-page CGLP application and participation certification by clicking on the button below. Sample forms of the lease ordinance and authoring resolutions are available by clicking on the buttons below:

CGLP Application and Participation Certification(PDF, 1010KB)

Sample Lease Ordinance (for Municipalities)(PDF, 196KB)

Sample Authorizing Resolution (for Schools, Fire Districts and Authorities)(PDF, 159KB)

If you have questions or require additional information about the MCIA's finance programs, please visit the FAQS web page. You may also contact the Authority or the Authority's financial advisor, Managing Director Jennifer Edwards of Acacia Financial Group, Inc., who will evaluate your needs and provide financing options for your review, by calling 856-234-2266 or by sending an email to jedwards@acaciafin.com.