In what scenario might a municipality opt for a lease instead of a purchase?

A municipality might choose a lease over a purchase particularly when minimizing upfront capital expenditure is a priority. Leasing allows the municipality to avoid the significant initial costs associated with buying an asset outright. This can be especially beneficial for cash flow management, as it spreads payments out over time rather than requiring a large, immediate investment.

Additionally, leasing can provide flexibility, enabling the municipality to allocate funds to other essential services or projects while still obtaining the use of necessary equipment or facilities. This strategic approach to financing is crucial for municipalities that may have constrained budgets or that need to manage resources conservatively. In this context, opting for leasing aligns well with the financial objectives of maintaining liquidity and operational efficiency.