Capital Financing Program
Capital Financing Application

Audited Financial Statements -2006

Audited Financial Statements -2007

Capital Financing Program

          The Mercer County Improvement Authority's Capital Financing Program is designed to supply school districts, local governments, fire departments and not-for-profit agencies with the funds required to meet capital needs.  The Program provides cost effective financing to build or purchase capital projects and equipment.  By financing through this Program, organizations will obtain lower insurance costs, lower interest rates and easy access to funds for construction and equipment financing.

          The Program involves the acquisition and leasing of land, buildings, equipment, vehicles, furnishings and other related items.  Participants have the advantage of obtaining such equipment, land and buildings more efficiently and economically, by combining the financing from numerous similar projects.  By sharing the cost with other participants, organizations will realize reduced insurance fees.

          Through this program, organizations can purchase their capital equipment needs through a convenient lease/purchase arrangement with the Mercer County Improvement Authority.  Typical purchases include computers, fire trucks, copiers, telecommunications systems, dump trucks, ambulances, lawnmowers, snow-plows and construction of facilities.

Financing Arrangements

          The Authority will coordinate the financing arrangements, act as lesser, purchase the equipment and lease it back to program participants.  Each participant is responsible for their own debt service payments.

Lease Financing Structure

          Lease payments are reflected as annual General Fund appropriations and are not classified as "debt" for statutory limitations purposes.

Convenient Payback Schedules

          Payback schedules are determined by the useful life of the equipment being financed.  Under the Improvement Authorities Law, the Authority has more flexibility in payment schedules.  At the expiration of the lease, the participants own the equipment.

Lower Issuance Costs

          All fixed costs associated with the issuance of debt, such as legal, underwriting, printing and trustee fees are shared by program participants on a pro-rated percentage basis.

Lower Interest Rates

          The Authority has the ability to achieve lower interest rates because of its legal structure and frequent market exposure.  Tax-exempt interest rates are the lowest available.  Participants will realize significant savings.

Exemption From Municipal Cap Law

          Purchases funded through the Authority are not subject to capital statutory debt limitation requirements.  Under the Improvement Authorities Law, program participants can take advantage of this flexibility by financing through the Authority.

Bidding Services

          The Authority has extensive knowledge of the State bidding laws and will take care of your organization's bidding needs for your financing items.

Summary

          The MCIA can provide cost effective financing for capital projects through lease-purchases, leasehold mortgages, or bond issuances.

Benefits:

The Authority will protect the financial interests of the participant in all aspects of the project financing. Because of our professional experience and legal status, the Authority can often obtain lower issuance costs and interest rates for you than corporate institutions or an entity operating on its own. You can be assured of timely and convenient construction progress payments through the Authority's direct payments to contractors. We will explain methods of financing that will have the most positive impact on your debt cap assessment.

The Authority will:

• Negotiate and contract directly with financial professionals, as needed, for debt issuance such as financial advisors, trustees, bond counsel, rating agencies, underwriters, or bond insurance providers.
• Coordinate all financial matters related to the negotiation of the bond sale.
• Oversee required approvals from the County Executive, Board of Chosen Freeholders, and the Local Finance Board.
• Attend to the publication of public notices.
• Work closely with our clients.

Fee Schedule Adopted May 9, 2006 (PDF Format)

Project Management Services

          The Authority can also manage and oversee the construction of your project.  Click here for more details.