Treasurer Sprague Announces OMAP Savings for the City of Hubbard
COLUMBUS – The Ohio Market Access Program (OMAP) administered by Ohio Treasurer Robert Sprague has helped the City of Hubbard (Trumbull County) enter the market to refinance outstanding debt and save an estimated $3,285 in interest costs over the next year.
“OMAP has a proven track record in helping communities save money when investing in infrastructure projects and other improvements,” said Treasurer Sprague. “By leveraging the state’s high credit rating, OMAP reduces interest expenses for our local government partners. We’re proud to partner with the City of Hubbard as they continue to benefit from the program.”
The OMAP credit enhancement allowed the City of Hubbard to achieve meaningful interest cost savings. The original note was issued to finance improvements to the city’s electric system infrastructure, including the purchase and installation of three diesel-fired generating units. This issuance marks the fifth time that the city has utilized OMAP. The previous four deals have saved the city an estimated $29,175 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 220 deals, ranging from $390,000 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.