October 24, 2022
Dear Neighbors:
On Tuesday, Nov. 8, Columbus residents will head to the polls and,
among other critical decisions, have the opportunity to vote on Issues 14-18, a
$1.5 billion bond package that would allow the city to invest in a wide range
of essential neighborhood infrastructure and public services.
The first thing you should know is that this bond package will not
increase property taxes or impose any new tax. What it will do is give our city
access to the financing we need to improve quality of life through large-scale,
significant investments in our neighborhoods.
Before delving into Issues 14-18, I'd like to share a bit of
background on what bond packages are, how they are paid and the unique role
they play in strengthening our city.
What is a bond package?
Just like a typical resident who borrows money to purchase a home,
the City of Columbus borrows money to pay for its capital improvements program.
Columbus borrows money from investors by selling bonds and uses the proceeds to
purchase equipment and upgrade city infrastructure and facilities.
How are these bonds paid for?
The city places a quarter of every income tax dollar and a portion
of your utility bill in a special fund to repay our bonds. Voter-approved bonds
are secured by the city’s ability to levy a property tax if ever the city
cannot repay the bonds. However, since 1956, the city has always met its
obligations and has never imposed a property tax to repay bonds.
Why does the city pursue voted bonds over other forms of
financing?
Voter-approved bonds save money. Although the city already gets a
low interest rate on its bonds as one of the few cities in the nation with a
AAA credit rating from the three major rating agencies, investors have even
more confidence they will be repaid if voters have approved the bonds. Voted
bonds allow the city to issue bonds at a lower interest rate, saving city
residents millions and allowing the city to invest more in neighborhoods.
How would the funding provided by these bond sales be used if
approved by Columbus voters? Here's a brief overview:
Issue 14: Health, Safety and Infrastructure - $300,000,000
- Police and Fire facility improvements
- Fire apparatus replacements
- Police substations and fire stations
Issue 15: Recreation and Parks - $200,000,000
- Recreation centers
- Facility upgrades
- Park and playground development
- Bikeways
- Other improvements
Issue 16: Neighborhood Development - $200,000,000
- Affordable housing
- Other neighborhood investments
Issue 17: Public Service - $250,000,000
- Pedestrian safety and sidewalk
improvements
- Street/alley resurfacing
- Bridge rehabilitation
- Other neighborhood improvements
Issue 18: Public Utilities - $550,000,000
- Water system upgrades
- Sanitary and storm systems
- Power and street lighting systems
This bond package is a vital part of our work to strengthen
equity, resiliency and prosperity throughout Columbus. By banding together and showing
up on Election Day (or early
voting, if you're able), we will reach our full potential as a city and
include every family in our collective success.