Columbus Council Weighs $19.2M Refinancing for Zero Trust IT Debt
Ordinance 2505-2026 pairs new bond anticipation notes with a $3.8M cash paydown ahead of a November maturity date.
Columbus City Council is scheduled to hold a second reading and consider emergency adoption of Ordinance 2505-2026 on Monday, Oct. 5, 2026, authorizing the issuance of up to $19,165,000 in limited tax bond anticipation notes. The borrowing is designed to refinance short-term municipal debt originally issued in 2025 to finance hardware and software acquisitions for the city's Zero Trust Network Project, contracted with CDW Government, LLC.
The original financing was completed on Nov. 10, 2025, when the city issued $23,000,000 in notes to fund the cybersecurity project under Section 133.23 of the Ohio Revised Code. Those notes are scheduled to mature on Nov. 10, 2026. Rather than issuing long-term bonds immediately, the proposed legislation rolls over the bulk of the maturing debt into replacement notes while paying down a portion of the principal in cash.
Debt Rollover and Cash Paydown Breakdown
Ordinance 2505-2026 establishes an overall expenditure authorization of $23,894,400 across the municipal Department of Technology's Info Services Operating Fund and the Info Services Debt Retirement Fund.
The financing structure divides the maturing obligation between debt rollover and direct cash outlays. Columbus will retire the full $23,000,000 in maturing 2025 principal by issuing up to $19,165,000 in new bond anticipation notes and paying down the remaining $3,835,000 in cash from the Info Services Operating Fund. In addition, the city will pay $869,400 in interest due on the 2025 notes directly from operating funds, while authorizing up to an expenditure of $25,000 for advertising, printing, legal counsel, and other issuance costs.
Emergency Timeline and Note Terms
City officials designated Ordinance 2505-2026 as an emergency measure to ensure the new debt can be marketed, priced, and closed before the existing notes mature on Nov. 10, 2026. Legislative filings note that the emergency designation is required to provide for the timely issuance of debt and allow for ongoing project financing.
Under the terms established in the legislation, the replacement notes—designated as City of Columbus, Ohio Technology Acquisition Limited Tax Notes, Series 2026 (Federally Taxable)—carry an interest rate capped at 6.00% per annum, calculated on a 360-day year of twelve 30-day months, payable at maturity.
Security Pledges and Auditor Responsibilities
The notes are backed by the city's full faith and credit under its limited tax pledge, which levies a direct property tax within Ohio's constitutional 10-mill limitation if other revenues are insufficient. The ordinance also provides an income tax covenant pursuant to Ohio Revised Code Section 133.05(B)(7), under which the city covenants to levy and collect adequate municipal income taxes each year to meet debt charges. If the City Auditor determines that sufficient funds are available in the Info Services Operating Fund, the property tax levy is reduced by that amount.
The City Auditor plays an extensive role in the financing. Prior to council consideration, the auditor certified that the estimated life of the improvement exceeds five years, supporting a maximum maturity of five years for notes and six years for bonds. The ordinance also appoints the City Auditor as note registrar, paying agent, authenticating agent, and transfer agent, granting authority alongside the Director of Finance and Management to determine final interest rates, denominations, and whether to execute a competitive sale, negotiated sale, or private placement with the city's Treasury Investment Board.
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Columbus City Council · 2026-10-05
Supporting evidence (1)
Columbus City Council is scheduled to hold a second reading and consider emergency adoption of Ordinance 2505-2026 on Monday, Oct. 5, 2026, authorizing the issuance of up to $19,165,000 in limited tax bond anticipation notes.
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REGULAR MEETING NO.43 OF COLUMBUS CITY COUNCIL, OCTOBER 5, 2026 at 5:00 P.M. IN COUNCIL CHAMBERS..
Supporting evidence (10)
The borrowing is designed to refinance short-term municipal debt originally issued in 2025 to finance hardware and software acquisitions for the city's Zero Trust Network Project, contracted with CDW Government, LLC.
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This ordinance authorizes the issuance of limited tax bond anticipation notes in an amount not to exceed $19,165,000.00 to refund outstanding bond anticipation notes issued for the purpose of financing the costs of purchasing, constructing and implementing the Zero Trust Network.
The borrowing is designed to refinance short-term municipal debt originally issued in 2025 to finance hardware and software acquisitions for the city's Zero Trust Network Project, contracted with CDW Government, LLC.
Read supporting passage
WHEREAS, City Council (the “Council”) of the City of Columbus, Ohio (the “City”) has previously authorized an agreement with CDW Government, LLC for the purchase of IT hardware and software known as the Zero Trust Network Project (the “Project”); and
The original financing was completed on Nov. 10, 2025, when the city issued $23,000,000 in notes to fund the cybersecurity project under Section 133.23 of the Ohio Revised Code.
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The original note was issued in 2025 in the amount of $23,000,000.00. Proceeds from the 2026 note sale will be used to provide for the payment of a portion of the 2025 notes that will mature on November 10, 2026.
In addition, the city will pay $869,400 in interest due on the 2025 notes directly from operating funds, while authorizing up to an expenditure of $25,000 for advertising, printing, legal counsel, and other issuance costs.
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This ordinance also authorizes the expenditure of $25,000.00 to provide for the cost of advertising, printing and legal services and other costs incidental thereto, as well as $23,000,000.00 in principal and $869,400.00 in interest due on the 2025 note.
Legislative filings note that the emergency designation is required to provide for the timely issuance of debt and allow for ongoing project financing.
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This legislation is considered an emergency in order to provide for the timely issuance of debt and allow for financing of the project.
Under the terms established in the legislation, the replacement notes—designated as City of Columbus, Ohio Technology Acquisition Limited Tax Notes, Series 2026 (Federally Taxable)—carry an interest rate capped at 6.00% per annum, calculated on a 360-day year of twelve 30-day months, payable at maturity.
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The Notes shall bear interest at such rate per annum as shall be determined by the City Auditor and certified to this Council, provided that such rate shall not exceed six per centum (6.00%) per annum, based on a 360-day year of twelve 30-day months, payable at maturity.
The notes are backed by the city's full faith and credit under its limited tax pledge, which levies a direct property tax within Ohio's constitutional 10-mill limitation if other revenues are insufficient.
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There shall be and is hereby levied annually on all the taxable property in the City, in addition to all other taxes and within the ten mill limitation, a direct tax (the “Debt Service Levy”) for each year during which any of the Notes are outstanding, for the purpose of providing, and in an amount which is sufficient to provide, funds to pay interest upon the Notes as and when the same falls due and to provide a fund for the repayment of the principal of the Notes at maturity or upon redemption.
The ordinance also provides an income tax covenant pursuant to Ohio Revised Code Section 133.05(B)(7), under which the city covenants to levy and collect adequate municipal income taxes each year to meet debt charges.
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The City hereby covenants, pursuant to Ohio Revised Code Section 133.05(B)(7), to appropriate annually from lawfully available municipal income taxes, and to continue to levy and collect municipal income taxes adequate to produce, amounts necessary to meet the debt charges on the Bonds in each year until full payment is made.
Prior to council consideration, the auditor certified that the estimated life of the improvement exceeds five years, supporting a maximum maturity of five years for notes and six years for bonds.
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WHEREAS, the City Auditor has certified to this Council that the estimated life of the improvement stated above which is to be financed from the proceeds of bonds and notes hereinafter referred to exceeds five (5) years, the maximum maturity of bonds being six (6) years and notes being five (5) years; and
The ordinance also appoints the City Auditor as note registrar, paying agent, authenticating agent, and transfer agent, granting authority alongside the Director of Finance and Management to determine final interest rates, denominations, and whether to execute a competitive sale, negotiated sale, or private placement with the city's Treasury Investment Board.
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The City Auditor is hereby appointed to act as the authenticating agent, note registrar, transfer agent and paying agent (collectively, the “Note Registrar”) for the Notes.