Columbus defers $98M utility bond issuance to protect AAA credit rating

Columbus defers $98M utility bond issuance to protect AAA credit ratingCity Council has referred a massive municipal bond package back to committee, pausing up to $98.3 million in public utility bonds until the administration provides a comprehensive report on the city's operating deficit and capital plans.

Council deferred Ordinance 1990-2026, which would have authorized up to $98.3 million in unlimited tax bonds for public utility projects.

The utility bonds are part of a broader $514 million municipal bond package that was postponed across the board.

Council leadership cited the need to review the city's operating budget deficit and protect Columbus's AAA credit rating.

The city auditor confirmed that postponing the approval to August will not negatively impact the planned September bond sale.

At a June 29 meeting, the Columbus City Council voted to defer a $514 million municipal bond package, including $98.3 million specifically earmarked for public utility projects, referring the legislation back to committee. Ordinance 1990-2026 sought authority to issue unlimited tax bonds to fund utility capital improvements. However, the Council President moved to delay the entire package to allow for further review of the city's capital plans and operating budget deficit. "We consider the city's AAA credit rating to be our city's crown jewel, and it's something that we need to defend and maintain," the Council President noted during the meeting. He clarified that the delay does not reflect a lack of merit in the city's current capital priorities, adding that "there are a lot of important projects in the pike, and I believe that those will still move forward." The administration is expected to prepare a report in late July addressing the city's budget. The council plans to send a memo with specific financial questions to the administration and will take up the bond ordinances again when it returns from recess in August. The city auditor confirmed that the two-month postponement will not disrupt the planned bond sale. The initial plan was to price the bonds in September, and the auditor noted that as long as the authorizing ordinances are approved prior to rating agency conversations in late August or early September, the financial schedule remains viable. Despite the bond deferral, the council proceeded to approve several major water infrastructure contracts funded by existing mechanisms during the same meeting. These included a $14.7 million engineering modification for the Fourth Water Plant Transmission Main, a $9.65 million construction contract for SCADA radio improvements, and a formal code change renaming the Department of Public Utilities to "Columbus Water & Power."