State Program Helping Local Governments Save In Interest Costs

(From Ohio Treasurer Robert Sprague)

The Ohio Market Access Program (OMAP) administered by Ohio Treasurer Robert Sprague has helped the Village of Carey (Wyandot County) enter the market and save an estimated $30,665 in interest costs.

“Through OMAP, our local governments have the power to leverage the state’s high credit rating to drive down borrowing costs and save money,” said Treasurer Sprague. “With this latest deal, the Village of Carey will bring its total savings through OMAP to more than $262,000 dollars since first partnering with our office in 2018.”

The original notes were issued to fund major electric system improvements, including a new substation, transformer, and distribution feeders to serve a new school and industrial park, as well as the replacement of wooden poles with iron or steel poles. This deal marks the seventh time the Village of Carey has leveraged OMAP, and the previous deals saved the village an estimated $232,219 in interest expenses.

OMAP is a credit enhancement program that leverages the state’s excess liquidity and high short-term credit rating to help improve market access and lower borrowing rates for local governments. Since its 2014 launch, OMAP has supported more than 330 deals, ranging from $365,000 to over $100 million. There have been no defaults, and to date, OMAP has generated more than $6.3 million in estimated savings for local governments.

Any government subdivision in good fiscal standing, including cities, villages, school districts, counties, townships, and special districts, issuing short-term debt is eligible to participate. For more information, visit https://omap.ohio.gov/.