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Basic Facts About The Financing Program
Is membership in the
Center required to participate?
No.
Who can borrow through
the program?
Any county, city, village, township or fire district in the State of
Ohio may be eligible.
What can be financed?
Virtually any capital asset (life of five years or more) can be
financed through the program, such as fire trucks, fire stations, police
cruisers, maintenance buildings, road improvements and land purchases to name a
few. The program can also be used to refinance existing bonds and/or outstanding
notes. For more examples, click here (PDF: 8KB).
What is required to
participate in the program?
Eligible members must pass either a resolution or ordinance
authorizing the borrowing and then accept the final interest rates and terms
once the program is funded.
What are the interest
rates?
Interest rates will vary depending on the length of borrowing, but
will be based on the bond yields for highly rated bonds. Of course rates are
subject to change at any time, but would reflect those of highly rated bonds at
the time the program is funded.
Click here for the
current rates.
What is the payback
period?
The participating entity may select a repayment period from one to 25
years subject to the estimated life of the asset.
How much does it cost
to participate?
The cost to participate is included in the interest rate of your
financing. The actual cost will depend on the size and number of members
participating since the advantage of the program is to “share” certain fixed
expenses and to gain economies of scale. In any case, the cost under the program
should be substantially less than an independent financing. Each participant
will receive a detailed accounting of the cost at the closing of each financing.
Can financings be paid
off early or refinanced?
Financings exceeding 10 years in length may be eligible for
prepayment or refinancing subject to the same rules applicable to most fixed
rate bonds.
What is the timetable?
Click here for the current timetable.
What are the payment
requirements?
Each member will be required to make semi-annual interest payments on
May 15 and November 15 and annual principal payments on November 15. Members can
choose annual repayment plans, however, that fit their individual cash flow
needs. For example, they can choose level annual payments or increasing or
decreasing annual payments.
What is the maximum I
can borrow?
The program does not have a minimum nor maximum limit; however, your
existing statutory debt limitations must be applied as they would under
traditional borrowing methods.
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