Centerville renews $7.6 million bond anticipation note for Benhams Grove; authorizes Ohio Market Access Program participation

Centerville City Council approved an ordinance Feb. 17 to replace a 12-month bond anticipation note of $7,600,000 for the Benhams Grove park improvement project and added provisions authorizing the city to use the Ohio Market Access Program as a potential credit enhancement.

The action came after a public hearing with no speakers. Finance Director Rourke told council the note being replaced matures April 9, 2025, and the replacement note will close April 8, 2025, and itself carry a 12‑month maturity. “This is simply a renewal or replacement note,” Rourke said.

The ordinance as amended adds two sections authorizing Centerville to participate in the Ohio Market Access Program (OMAP), a program run by the Treasurer of State that can act as a standby purchaser or a lower‑cost insurance-like wrap. Under the amendment, participation requires that the city manager or finance director affirmatively elect to use the program in the certificate of award and that participation be in the city’s best interest. The council also authorized execution of a standby purchase agreement in a form approved by the city’s authorized signatories.

Legal counsel told council that, under the charter and after discussion with bond counsel, the added language was not a substantive change that would require another public hearing because the provisions were intended to be in the ordinance but were missed in the version set for hearing.

Council discussion included details the ordinance and OMAP procedure would require if the Treasurer of State purchases notes at maturity or purchases renewal notes. The amended ordinance records that, in the event the city cannot repay the notes, the Treasurer of State may purchase the notes at par plus accrued interest or purchase renewal notes bearing a market-based interest rate, and that a nationally recognized bond counsel must deliver an unqualified legal opinion in connection with any renewal notes. The ordinance also references the tax levy limit (the 10-mill limitation) and federal tax treatment of the notes under Section 103 of the Internal Revenue Code as required by the program documents.

Rourke said participation in OMAP could reduce the city’s short-term borrowing costs. Council was told the program could save the city roughly $25,000 to $30,000 over the 12-month period with an estimated program cost of about $5,000. The council voted unanimously to add the two sections authorizing OMAP participation and, later in the meeting, to adopt ordinance 06-25 as amended.

No members of the public addressed the council during the hearing. The ordinance authorizes the city manager and finance director, as officers signing the notes, to take actions necessary to implement the standby purchase agreement and to include a notation on the notes notifying holders of the agreement.

Why it matters: The action keeps funding in place for completion of the Benhams Grove improvements and gives the city an option to lower short-term borrowing costs through a state program designed for political subdivisions. The council recorded no additional borrowing above the existing $7.6 million; the vote was to renew and to add authorization for a credit-enhancement option.