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.s w <br /> 411 <br /> Mr . Mike Ulrich <br /> August 23 , 1990 <br /> Page 2 <br /> EXECUTIVE SUMMARY <br /> The tax-exempt lease is actually an installment sales contract <br /> which provides a quick, easy and cost effective method for <br /> essential product purchase. There is no depreciation or residual <br /> value associated with a municipal lease. Each lease_ payment <br /> consists of principal and interest ;.,Title passes to the <br /> government entity at the commencement of the -lease. " <br /> Non-appropriation language provides a fiscal funding out <br /> provision in the event monies cannot be appropriated to continue <br /> the lease for any renewal periods during the term of the lease. <br /> • <br /> OBJECTIVES • <br /> Our objectives in providing you with this financing include: <br /> • - Recommending a cost effective lease structure <br /> - Preparing tax-exempt documentation <br /> - Providing funds for the purchase <br /> - Offering lease administration for the lease term <br /> GENERAL PROPOSAL: <br /> Equipment: 12' Trailer <br /> Acquisition Cost: $50, 000 <br /> Down Payment: $9, 000 <br /> Amount Financed: $41, 000 <br /> Lease-Purchase Term: 3 , 4, and 5 Years <br /> Payment Amount: 3 Years $16 ,100/Annual Payment <br /> 4 Years $12,725/Annual Payment <br /> 5 Years $10,700/Annual Payment <br /> Title : Passes to Mounds View <br />