Treasurer Sprague, Village of Grafton Announce 2022 OMAP Deal Savings
COLUMBUS – The Ohio Market Access Program (OMAP) administered by Ohio Treasurer Robert Sprague has helped the Village of Grafton (Lorain County) enter the market to refinance outstanding debt and save an estimated $38,850 in interest costs over the next year.
“Through OMAP, local governments can take advantage of the state’s high credit rating to lower interest costs and save money when financing important projects,” said Treasurer Sprague. “The program continues to help communities stretch their dollars and we’re proud to partner with the village as they navigate the municipal debt market.”
The OMAP credit enhancement allowed the Village of Grafton to achieve meaningful interest cost savings. The original note was issued to finance upgrades and expansions to the village’s main electrical substation. This issuance marks the second time that the village has utilized OMAP. The previous deal saved the village an estimated $28,860 in interest expenses.
“The Village of Grafton is pleased to continue its work with the Ohio Treasurer’s office to finance the construction of Grafton’s new electric substation and system control center improvements,” said Grafton Village Administrator Joe Price. “This modern infrastructure will ensure we’re providing the Grafton community with low-cost and reliable municipal public power, assure distribution sustainability, and allow for future growth. The Ohio Market Access Program is an instrumental funding mechanism making municipal infrastructure improvements like this possible.”
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 220 deals, ranging from $365,000 to over $100 million. There have been no defaults, and to date, OMAP has generated more than $4.2 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/.
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 $39 billion investment and $11 billion debt portfolios, collects and deposits all state revenues, and oversees custodial assets.