Saving dollars and paving the way, the City of Montgomery is counting on an unexpected financial win, thanks to an assist from a state program designed to trim interest costs. As announced by Ohio Treasurer Robert Sprague, the city will save approximately $8,227 in interest costs by participating in the Ohio Market Access Program (OMAP) for the first time.
The financial maneuver is no small feat for the City of Montgomery, located in Hamilton County, as it lays the groundwork for a suite of infrastructural enhancements, from the construction of new roads to the improvement of vital water mains and sewers. Detailed in a statement, Ohio Treasurer Sprague highlighted the importance of programs like OMAP: “Local governments across the Buckeye State are seeking ways to use public dollars responsibly while making essential infrastructure upgrades, and OMAP offers them a cost-saving option for financing these projects.”
OMAP isn't just about one-time savings – since it was established in 2014, it has been a lifeline to local governments of various sizes, marrying the state's strong credit rating with the financial needs of cities, townships, and school districts. It allows these entities to better their access to the market and secure lower borrowing rates. In the realm of public economics, OMAP stands as a beacon of fiscal reliability, with no defaults having occurred, and a towering figure of over $7.6 million in estimated savings.
Eligibility for the program extends to any government subdivision in good fiscal standing. Whether a big city or a small village, a school district or a special district, if they're issuing short-term debt, they can tap into OMAP for financial reprieve. According to the Treasurer’s Office, the scope of projects this program has supported is broad, ranging from $365,000 to more than $100 million.
