• No Election RequiredGeneral Obligation Bonds require an election –voter approval. Alternative Financing thru lease purchase does not require an election based on the Public Property Finance Act authorizing school districts to enter into lease purchase contracts. Therefore, under Alternative Financing, No Election is Required.
• No Tax Increase RequiredUnder Alternative Financing thru lease purchase no increase in property taxes is required. School Boards can at their discretion raise property tax rates based on a particular district’s needs or mandates from the State anytime. However, to implement alternative financing, No Tax Increase is Required.
• Flexible Payment ScheduleAlternative Financing can provide a payment schedule designed to meet the districts needs. For example, a district may need lower payments for the first one or two years. Under alternative financing payment schedules can be predicated on delayed payments while a project is under construction or interest only payments for a time certain. Flexible payments are only available thru alternative financing programs.
• Tailored FinancingMany times a district will have revenue sources low one year and high another. A district maybe in a modest growth phase with an increasing ADA or a stable ADA but need new facilities. Chancellor is capable of providing a financing plan commensurate with the district’s budget and future income stream.
• Expedited ConstructionAlternative Financing thru lease purchase revenue bonds speeds up the construction process. Presently under State law a district can hold a bond election in May or November meaning the chances of actually starting construction in the bond election year is very unlikely. With alternative financing thru lease purchase the project can be started as soon as the board takes action on all necessary and proper legal steps.
• Professional ConsultationChancellor Financial assembles experienced/ knowledgeable bond counsel, underwriters, financing sources and financial consultant in order to shepherd the district thru the financing project. Chancellor Financial has been the leader in this area of financing for over 14 years and Chancellor President, Bill Caraway, while a member of the Texas House of Representatives authored the present Public Property Finance Act which is the legal authorization for alternative financing.