Chancellor Financial,chancellorfinancial@gmail.com
1-800-213-4580
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full range of financing options to school administrators, superintendents and board members for much needed equipment and construction projects.
Texas school districts to secure alternative financing for a variety of projects ranging from the construction of new facilities to computers, HVAC systems, gymnasiums and major repair/rehabilitation projects.
Alternative Financing Advantages
No Election RequiredGeneral Obligation Bonds require an election with voter approval. Under Alternative Financing, through lease purchase, no election is required, based on the Public Property Finance Act authorizing school districts to enter into lease purchase contracts. No Tax Increase RequiredUnder alternative financing, through lease purchase, no increase in property tax 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; there is also a choice of paying interest-only for a time. Flexible payments are only available through alternative financing programs. Tailored FinancingMany times a district will have revenue sources low one year and high another. A district may be 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 through 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, through 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 and knowledgeable bond counsel, underwriters, financing sources and financial consultant in order to shepherd the district through the financing project. Chancellor Financial has been the leader in this area of financing for over 20 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.
