January 2013

Curtis Funding Group, LLC 20 Division St., Coldwater, MI 49036 d: 248-773-7580 f: 888-548-9213

dgaddis@curtisfunding.com www.curtisfunding.com

Why use a Curtis Funding Group

Municipal Lease?

Leverage Lease Purchase Annual Appropriations 3, 4, or 5 times! Here’s How:

Annual appropriations can be spent dollar-for-dollar or can be “leveraged” by 3, 4 or 5 times when the same expenditure is allocated to an equipment lease purchase. A $50,000 (annual) budget appropriation may translate into enough to cover $150-250,000 in new lease-to-own equipment. Why this works: a municipal lease is actually a series of one year installment sale contracts (which often may include non-appropriation language), that is renewable each year for the duration of the lease. The lease purchase is fully amortized over the annual payment periods and there is no residual. Further “the lease” can be paid off in full at any time, re-financed at a future date (with an upcoming bond issue, for example), or terminated due to non-appropriation of funds (not applicable in all 50 states).

A lease purchase is not treated as debt, nor does a municipal lease purchase contribute to your debt ceiling. Here’s why: the obligation is subject to the annual appropriation of funds. In most states, because of the inclusion of “non-appropriation” language in the lease purchase agreement, payments are treated as operating expenses and not “public debt.” Unlike public debt, municipal lease financing does not require voter approval.

Protect Existing Borrowing Capacity Again, a lease purchase is not considered debt.

Significantly Faster, Less Complicated and Less Expensive than other forms of public debt. Documentation is straightforward. Most leases purchase agreements are finalized within one week. Compare this to a bond issue or other forms of public debt!

100% Financing No cash down payment is required with a municipal lease.

Municipal leasing is Cash Flow Friendly Leasing matches the cost of new equipment with the benefits and savings associated with that equipment over a period of years. Why Pay In Advance with lump sum payments out of any single appropriation?

Deferred Payment Options Take delivery now, pay the vendor now with lease payments commencing at your next fiscal/budget period.

Pick Your Own Payment Schedules Monthly, quarterly, semi-annually or annually-in advance or arrears.

Overcome Capital Budgeting Restrictions/Freezes! Many districts are facing equipment “freezes.” Equipment acquired through municipal lease purchase agreements is generally treated as operating expenses rather than capital appropriations.

Fast…Focused…Flexible