Municipal Programs

Heritage Pacific Capitals Operational Excellence in processing credit and funding, along with our Internal Funding capacity, state-of-the-art Information Technology systems, experienced Management team and Customer Centric attitude provides Municipalities with a reliable funding solution. Turnaround times have been tested to insure that they meet or exceed industry standards and our staff has been well trained to adapt to the unique requirements of municipalities. With our broadly acceptable collateral list, credit flexibility, and competitive rates we feel that we can provide your agency with the right solution.  We understand the different and complex credit and financing requirements of municipalities and therefore our mission is to offer you the optimum funding resources available.

Tax-exempt Municipal Lease-Purchase Agreements are conventional financial instruments commonly used to finance everything from vehicles to facilities or office equipment.  They are ideal for financing smaller and medium sized energy efficiency and water projects as well. Payments can be tied to the annual operating budget of the tax-exempt organization. These lease-purchase agreements often contain "non-appropriation" language, limiting the lessee's payment obligations to the current budget appropriation period. For many states, the financing agreement is not treated as a capital debt obligation, but as a part of the organization's operating budget and an expense item for accounting purposes.  The approval process for a lease is generally much easier and less expensive than issuing a bond, especially when voter referendums can be avoided.

Energy Service Performance Contracts ("ESPCs") are frequently used for public sector projects.  Traditional ESPCs contain three components: a project development agreement, an energy services agreement, and a financing agreement.  As such, an ESPC is not a financing agreement by itself; rather it may contain the financing component. Most lending institutions prefer to see the financing section as a stand-alone agreement that can be sold into the secondary market. This helps create demand for this financial instrument, usually resulting in better pricing.

ESPCs come in all shapes and sizes.  Guaranteed Savings Agreements account for about 85% of the ESPCs in the public sector. In these agreements, an energy service provider or insurance company guarantees that the equipment installed will generate the promised savings.  Stipulated Savings Agreements measure the savings one time and are a cost effective alternative to ongoing measuring and verification when the project variables are predictable and are not likely to fluctuate.