Treasurer Sprague, City of Kirtland Announce OMAP Deal Savings
The Ohio Market Access Program (OMAP) administered by Ohio Treasurer Robert Sprague has helped the City of Kirtland (Lake County) enter the market to refinance a one-year note and save approximately $7,200 in interest costs.
“The Ohio Market Access Program puts the state’s excess liquidity and high credit rating to work for our local governments,” said Treasurer Sprague. “For five years, Kirtland has utilized OMAP, and we’re proud of the savings generated for the city. We look forward to continuing to support them as they navigate the municipal bond market.”
The OMAP credit enhancement allowed the City of Kirtland to achieve considerable interest cost savings. The original note was issued for local projects including the purchase of vehicles for the city’s service department, the reconstruction of two residential side-streets, a regrading project, and sewer and resurfacing work.
“Kirtland’s participation in OMAP was vital to the city’s successful short term debt financing. The enhanced SP+1 rating provided the city with an exceptional pricing yield for our note,” said Kirtland Finance Director Mary Kovalchik. “Having partnered with the State Treasurer’s office during this volatile market proved to be an overwhelmingly smart business choice for the City of Kirtland.”
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 $3.25 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/.