CLEVELAND, Ohio — Cuyahoga County Council is considering whether to issue $40 million in bonds to reimburse the Cleveland Cavaliers for repairs the county is required to cover under the team’s lease agreement on Rocket Mortgage FieldHouse.

Also under consideration is a measure that would re-finance $40 million of the $60 million in bonds sold by the county in 2015 as an advance on revenues from the county’s so-called sin tax, which was extended 20 years by a 2014 vote.

The reason for both proposals? The money set aside for repairs at Rocket Mortgage FieldHouse has been used up, and the Cavs have been using their own money to pay for major capital repairs over $500,000, which the county is required to fund under the lease.

If approved by Council, the $40 million generated in the bond sale would go back to the Cavs for projects the team already has paid for, or those currently in the works. That money would not be used to finance any new repairs or upgrades.

What does the refinancing proposal entail?

The county is considering whether to re-finance $40 million of the $60 million bonds issued in 2015. The re-issue would be backed by the county’s general fund rather than sin-tax revenues and would give the county a better rate.

The deal is similar to homeowners refinancing their mortgages, according to Bob Franz of Stifel, the county’s financial adviser.

What if the county does not issue the bonds?

Because the lease requires the county to pay for major capital repairs, alternatives are limited.

The sin tax on alcohol and tobacco sales generated in 2018 about $13.9 million, and the cost of annual repairs over the last four years alone has far outpaced that average income.

Councilman Dale Miller noted the lease requires the county to pay for repairs in a “timely” manner. Cavaliers and Rocket Mortgage FieldHouse CEO Len Komoroski said the lease does not speak to how the county money generates that money.

Komoroski said the expectation is that the county and the Cavs will continue to meet their lease obligations.

Will the arena need other repairs not covered by the proposed bond sale?

Komoroski said the $40 million will take care of the “preponderance” of what’s needed“ for the foreseeable near future.”

Elevator and escalator repairs will be needed, but Komoroski said that’s a “smaller need” compared to other projects already approved or under construction.

What happened to the money from the 2015 bond issue?

Of the $60 million generated in 2015, $37 million went to Progressive Field and $22 million went to Rocket Mortgage FieldHouse. All that money has been spent on major capital repairs at both venues.

The Cavs paid about $40 million beyond that $22 million for repairs that are the county’s responsibility, such as the replacement of the heating and cooling system, retractable seating, sports lights, ADA-compliant restrooms, and other things.

What about Progressive Field?

The Indians paid for about $7.5 million in repairs beyond their initial $37 million. That includes escalator replacements, suite renovations and construction of the Club Lounge.

The Indians have not asked for reimbursement for that $7.5 million, so they will not receive money from the proposed bond issue. A team representative noted in comments to Council that they are not yet asking for reimbursement because they are working on long-term planning ahead of their lease expiring in 2023.

What about the Q transformation?

The $185 million transformation of Quicken Loans Arena, now known as Rocket Mortgage FieldHouse, involved about $70 million in public money and $115 million in Cavs money.

That project is not related to the county’s lease obligations, and doesn’t fall under “major capital repairs.”

This story has been updated to reflect the amount of money generated by the sin tax in 2018.