Armond Budish 5/29

County Executive Armond Budish addresses the public during a Cuyahoga County Board of Health press briefing May 29.

County Executive Armond Budish announced May 29 that Cuyahoga County has devised an investment tool where the county can purchase municipal obligations from its cities, townships, villages and school districts to help them save money.

Budish explained the tool during a Cuyahoga County Board of Health press briefing by providing an example of how political subdivisions would typically deal with municipal obligations. A city would borrow money to pay for a project by issuing a note. These notes function as an intention to pay back whoever the city borrowed money from. 

When a city's note is due, it would re-issue a note on the market and pay off the older note. 

But because of the troubled economy caused by the COVID-19 pandemic, the outside investors or big institutions that buy notes are few, if any. 

The county will buy political subdivisions' new notes, offering a lower interest rate than the outside investors that the municipalities would have to pay.    

"This program can literally be a lifesaver for a city," Budish said. "If the county was not involved, cities would have to go into their reserves to pay off the note or default."

By using the county's investment tool, Budish said both Cuyahoga County and the political subdivisions can prosper during these economic hardships. 

"It becomes a win-win," Budish said. "The city avoids default and the county can make a modest interest rate."

The county recently used this tool for Euclid, Seven Hills and Broadview Heights and found success.

"And we can do it again – just give us a call," Budish said.    

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