Since 1991, GMA has worked with cities in Georgia to facilitate the purchase of real estate projects for a variety of project types including city halls, police/fire stations and public parks, theaters and greenspaces among others.
Financing Metter’s Equipment Needs for the Last 25 Years
Since 1995, the city of Metter has used the GMA Direct Lease Program to finance a variety of essential equipment including police vehicles, fire trucks, excavators, knuckle boom trucks and computer servers. To initiate a new transaction, the city forwards the quote sheet or invoice for the equipment being financed along with the last city’s last three Comprehensive Annual Financial Report (if not available online). GMA will then forward the formal request to the bank. After approval, GMA prepares the lease supplement (including council resolution) for execution. After forwarding the executed documents to GMA, the closing is scheduled which provides the city the funds for the purchase. The city and GMA have created a seamless working relationship leading to quick execution for Metter’s vehicle and equipment needs.
Flexibility for New and Used Fire Trucks for Riverdale
In 2021, city of Riverdale looked to GMA to assist in financing three fire trucks. Two of the fire trucks were new, while one was built in 2008. GMA worked with a lending partner to provide financing for all three trucks with a seven-year term and a very attractive interest rate. Because the trucks will be delivered throughout the year, GMA structured a project account in which transaction proceeds are placed in a dedicated account available for the city to access as trucks are delivered and paid for.
Closing into a project account also allows the city to lock in an attractive interest rate rather than accepting the risk of a higher rate when the trucks are delivered.
Efficient Execution with City of Griffin
Closing its first transaction in 1993, city of Griffin has a long history financing equipment through GMA’s Direct Lease Program. The city has partnered with GMA to finance a number of assets including solid waste vehicles, excavators, fire trucks, street sweepers and a variety of other rolling stock. Griffin’s finance team works closely with GMA staff and our partner banks to anticipate future funding needs and craft the most cost-effective financing structure for each project. Early communication has been instrumental in forging an effective partnership between the city and GMA Financial Services.
New Relationship with City of Tennille
Many cities that have previously financed equipment through third parties are finding value in GMA’s Direct Lease Program. In 2020, the city of Tennille executed a master lease and closed its first transaction with GMA for a single piece of equipment. The city has since used the program again in 2021 for another project. Initiating a direct lease relationship is an easy process that can then be efficiently used to finance future transactions.
This article was originally featured in the September/October 2021 edition of Georgia’s Cities Magazine.