This article is brought to you by The Bryan Times
By Times staff report
Dec 3, 2022
The village of Pioneer has joined the The Ohio Market Access Program (OMAP) administered by the Ohio Treasurer’s Office. The announcement was made Friday.
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 255 deals, ranging from $365,000 to over $100 million. There have been no defaults, and to date, OMAP has generated more than $4.5 million in estimated savings for local governments, according to Ohio Treasurer Robert Sprague.
Sprague’s announcement said the OMAP has helped the village of Pioneer enter the market to refinance outstanding debt and save an estimated $31,513.42 in interest costs over the next year.
“Through OMAP, local governments can leverage the state’s high credit rating to lower their interest rates and save on borrowing costs. We’re pleased to partner with the village of Pioneer as they invest in electric infrastructure improvements in their community,” Sprague said, adding the OMAP credit enhancement will help the village of Pioneer achieve significant interest cost savings.
He said the original note was issued to fund major electric system improvements, including a new substation transformer and distribution feeders. The village of Pioneer has been an OMAP participant since 2021 and the previous deal saved an estimated $27,650 in interest expenses.
“By utilizing the Ohio Market Access Program, the village of Pioneer will see significant interest savings in 2023, which will benefit the village’s electric customers,” said Pioneer Village Administrator Al Fiser.
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.