WASHINGTON — District of Columbia Mayor Vincent Gray has refused to sign a council-approved bill that would delay taxing out-of-state bonds until Jan. 1, 2012, warning that the use of $13.4 million of reserve funds to pay for the delay could hurt the city’s credit rating.

“We must do everything possible to preserve and enhance the district’s bond ratings,” Gray told District Council chairman Kwame Brown in a letter he sent explaining his decision on Tuesday night to not sign the bill, which would provide clarifications to the budget passed in June. “If our ratings are lowered, our cost of borrowing increases. Higher debt service means fewer dollars available for important district services and programs and a reduction of capital projects under the district’s 12% debt cap.”

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