Treasurer Sprague, City of Mayfield Heights Announce Savings in OMAP Deal
COLUMBUS – During a dislocated municipal bond market, the Ohio Market Access Program (OMAP) administered by Ohio Treasurer Robert Sprague helped the City of Mayfield Heights (Cuyahoga County) enter the market to refinance a one-year note and save approximately $12,500 in interest costs.
“During a time when it’s necessary for all levels of government to work together, the OMAP program leverages the state’s high short-term credit rating to lower borrowing costs for local governments,” said Treasurer Sprague. “As governments at every level switch gears in response to the COVID-19 crisis, we’re proud to partner with Mayfield Heights so they can save money and keep their focus on serving residents.”
Due to the COVID-19 pandemic, there has been a strain on liquidity as the usual buyers are not active in the municipal market at this time. The OMAP credit enhancement allowed the City of Mayfield Heights, which does not have an underlying rating, to make this sale in the public market. The original note allowed the city to finance storm sewer reconstruction and associated street repairs and improvements.
“Mayfield Heights is very grateful to have participated in the OMAP Program,” said Mayfield Heights Finance Director Karen Fegan. “Since Mayfield Heights is not a frequent issuer of debt, having the State’s credit rating backing these notes attracted additional buyers ensuring market access and a successful note sale during this period of tremendous market disruption caused by COVID-19.”
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 150 deals, ranging from $390,000 to over $100 million. There have been no defaults, and to date, OMAP has generated more than $3 million in 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/.
Robert Sprague became Ohio’s 49th Treasurer of State on January 14, 2019, bringing to the office his extensive experience working on financial matters in both the public and private sectors. Under Treasurer Sprague’s direction, the office manages the state’s $20 billion investment and $10 billion debt portfolios, collects and deposits all state revenues, and oversees custodial assets.