A bond election is not required.

Texas has a user friendly statute to finance personal property including vehicles and equipment, Chapter 271 Subchapter A of the Texas Local Government Code. The only requirement is that the governing body approve the lease purchase agreement, and there is no notice in the paper requirement or requirement to submit the lease to the Attorney General of Texas for approval.

Lease terms generally are matched to the useful life of the property financed. The flexibility of monthly,quarterly,semi-annual, or annual payments provides for easy budgeting. There is no prepayment penalty for early payoff.

Unlike rentals, a lease-purchase program may permit the governmental entity to build equity with each payment. At the end of the lease term, the governmental entity owns the equipment upon remittance of $1.00.

A lease-purchase obligation permits acquisition of needed equipment today, before prices rise still further.

A lease purchase program provides quick financing for funds to purchase vehicles or equipment for a government entity.

The non-appropriation clause is used in a governmental lease purchase agreement. This allows the governmental entity to terminate the lease and return the equipment or vehicles in accordance with the governmental lease purchase agreement if funds are not appropriated by the entity.