Financial Programs
We understand that today more than ever, public agencies are faced with restricted revenues, mandated expenditures and a sluggish economy. This, coupled with the need to repair and maintain an aging and overburdened infrastructure, has local governments looking for effective ways to address the financing of capital improvement projects. Through our various financial programs, the CSDA Finance Corporation is able to provide affordable financing solutions for capital improvement programs and other municipal financings.
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Certificates of Participation
Benefits of Certificates of Participation
- Tax-Exempt Interest Rate
- Level Payment Plan
- Enhanced Revenues
- Reduced Costs of Issuance
- Personalized and Responsive Customer Service
Certificates of Participation
Certificates of Participation (COPs) are available to issuers who can benefit from the flexibility and responsiveness of the program for borrowings of sufficient size. CSDA Finance Corporation together with its financial consulting team, raises funds to finance the district's projects through a public offering to investors. In return, those investors receive either a security interest in the asset and a stream of payments (principal repayment at maturity and semi-annual interest), or a first lien and pledge from a certain revenue source and a stream of payments, both mechanisms for which the interest portion is exempt from federal and California income taxation.
Lease-Purchase Finance
Lease-purchase financing is becoming an increasingly important element in the financial management strategies of local governments. Nationwide, the annual dollar volume of lease-purchase obligations has grown from $700 million in 1980 to an estimated $8 billion in 2000. As it has grown, the lease-purchase market has also evolved to address a variety of funding needs and institutional constraints. To assist public officials and staff to understand lease-purchase financing, here are some basic facts:
Benefits of the Lease Installment Purchase Financing
- No Upfront Costs or Fees
- Simplified Documentation
- Tax-Exempt Interest Rates
- Flexible Payment Terms
- Personalized and Responsive Customer Service
Lease Installment Purchase Financing Overview
- Lease purchase financing is a credit purchase
- Lease purchase financing is essentially a loan with a lease payment schedule
- Lease purchase financing can be used to purchase equipment: furniture, fire trucks, computers
- Lease purchase financing can be used to fund construction and real property
Refinance Program
Why Refinance?
The financial markets are ever in flux. Interest rates constantly rise and decline. Similar to refinancing of a home mortgage, refinancing of public debt allows your agency to replace your existing high-interest obligations with low-interest loans currently available in the financial marketplace without increasing your overall debt burden. Now that's budgetary relief you can use!
CSDA Finance Corporation's experienced team of financial experts can help your agency determine if refinancing is right for you. To learn more about refinancing or other financial options available to your agency, or to apply for a free financing quote.
