What does a lease/purchase arrangement allow the government to do?

A lease/purchase arrangement allows the government to purchase assets through a leasing agreement. In this type of arrangement, the government leases an asset for a specified period and often has the option to purchase it at the end of the lease term. This can be financially advantageous as it allows for budget flexibility and helps avoid large upfront costs associated with purchasing assets outright.

This mechanism is particularly useful for municipalities that may require essential equipment or facilities but lack the immediate funds to acquire them. By spreading the cost over time through annual lease payments, the government can manage its cash flow more effectively while still obtaining necessary assets to serve its constituents.