Columbus council holds first reading of 2026 budget, staff flags revenue shifts from state law changes

City finance staff presented the first reading of the 2026 appropriations and tax rate ordinance and briefed the Columbus City Common Council on major budgeting assumptions, the anticipated certified tax rate, and changes resulting from Senate Enrolled Act 1.

Regina McIntyre, presenting the budget ordinance and packet materials, told council the administration held 15 budget touchpoints this cycle including eight budget work group meetings, three capital committee meetings, and three budget hearing days. McIntyre reviewed the estimated impacts of Senate Enrolled Act 1 on property tax deductions and business personal property, and highlighted that the city has budgeted a $35 million Federal Aviation Administration (FAA) reimbursement grant in 2026 to fund tower work that substantially increases both revenue and expense totals in the advertised budget.

McIntyre said changes in state law will alter homestead and supplemental homestead deductions beginning in 2026 and will raise the threshold for business personal property reporting, reducing assessed value for businesses below the new $2,000,000 threshold. She presented the city’s advertised rate (1.3133) and the administration’s estimate of a likely certified rate near 1.0742. McIntyre said the city expects some property tax revenue declines and that the advertised budget includes an internal $1 million adjustment to the general fund and an increase to CCD estimates as an insurance measure against NAV changes.

Council discussed mechanics and unpredictability tied to the state process for certifying rates. Multiple council members urged media and residents to distinguish the advertised rate from the certified rate. Several councilors expressed concern about the uncertainty created by state changes and asked staff to be conservative where possible. McIntyre outlined budget assumptions: 2.7% COLA for non‑sworn employees, 3% for sworn staff, 4% funding pool for merit increases in department budgets, a 2% increase in employee health insurance premiums, water utility rate increases estimated at 11.6%, a $250,000 placeholder for a compensation study, and a $5 million general fund capital earmark for an animal care shelter (with an estimated $3 million in fundraising to supplement it).

Why this matters: the first reading sets the advertised budget and tax rate that the city must publish. McIntyre emphasized the advertised rate is intentionally higher than the anticipated certified rate to preserve maximum levy authority and explained the administration’s approach to uncertain NAV adjustments.

Next steps: Council approved the ordinance on first reading (vote recorded 7–1) and will consider the budget and final certified rate after the Department of Local Government Finance completes certification later this year. Staff said certification typically occurs in December or January.