Municipalities monetize assets to bolster budgets

Interesting developments as states, cities and counties deal with their budget issues and financing needs. The following three long term lease transactions give you an idea of the type of flexibility that municipalities will have to incorporate in these devastating economic times.

The following illustrate these types of transactions:

1) City of Chicago receives a $1.15b payment for leasing its parking meters.

2) Oakland’s port authority receives $60mm of up front cash, $19.5mm annual lease payments, and significant capital improvements.(Infrastructure Investor)

3) Florida is able to move forward on additional toll roads and bus rapid-transit service that it does not have the resources to build. (WSJ)

Mainline West believes it will become much more commonplace in the future to “monetize” municipal assets to bolster budgets and maintain facilities.

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Posted in State Budgets

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