You may have heard recently in local media about Cuyahoga County’s bond and debt structure.
Why do we use this structure? Simply put, major County projects are often funded through a process that includes bonds. These projects help make a transformative impact across our region, and they involve public financing, which affects all of us.
What is a bond?
A bond is a debt security, or simply, an IOU. Bonds are often issued by governments to fund investments in buildings, infrastructure, schools, etc.
In the case of Cuyahoga County, our region has undergone a transformation in recent years. That progress was fueled by multiple projects funded through bonds.
What projects have been funded through bonds in the past?
Progressive Field, Rocket Mortgage FieldHouse, the Global Center for Health Innovation, Huntington Convention Center, Hilton Cleveland Downtown, the Euclid lakefront trail, and the Lakewood bike path are all examples of projects funded through bonds.
Can we refinance bonds?
Yes, bonds are similar to your mortgage, student loans, or other debt. In our case, we can save taxpayers millions of dollars through refinancing.
Last year, the County was able to take advantage of historically low interest rates during the pandemic and achieve significant taxpayer savings through refinancing.
In total, Cuyahoga County taxpayers will save $55.7 million through 2037 as a result of the refinancing plan proposed by Executive Budish and approved by County Council.