TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve a Resolution of the City of North Port, Florida Accepting a Proposal of TD Public Finance, LLC to Provide the City With a Term Loan in Order to Finance the Acquisition, Construction and Equipping of Various Capital Improvements Within the City; Approving the Form of a Loan Agreement; Authorizing the Issuance of a Promissory Note Pursuant to Such Loan Agreement in the Aggregate Principal Amount of Not Exceeding $34,125,000 in Order to Evidence Such Loan; Authorizing the Repayment of Such Note From a Covenant to Budget and Appropriate Legally Available Non-Ad Valorem Revenues; Delegating Certain Authority to the City Manager and Other Officers of the City for the Authorization, Execution and Delivery of the Loan Agreement, Promissory Note and Various Other Documents With Respect Thereto; and Providing for an Effective Date.
Recommended Action
Option 1: Approve Resolution No. 2026-R-49, accepting the proposal from TD Public Finance, LLC to provide the City with a term loan to finance the acquisition, construction, and equipping of various capital improvement projects; authorizing the related loan documents and promissory note; and providing for repayment from legally available non-ad valorem revenues.
City Commission Options
Option 1: Approve Resolution No. 2026-R-49, accepting the proposal from TD Public Finance, LLC to provide the City with a term loan to finance the acquisition, construction, and equipping of various capital improvement projects; authorizing the related loan documents and promissory note; and providing for repayment from legally available non-ad valorem revenues.
• Pros: Approval of the Resolution provides funding to advance critical Capital Improvement Projects while utilizing a competitive financing process and repayment from legally available non-ad valorem revenues.
• Cons: Approval commits the City to a long-term debt obligation, requiring future non-ad valorem revenues to be budgeted and appropriated for debt service, which may reduce financial flexibility for other priorities.
Option 2: Deny Resolution No. 2026-R-49, authorizing a term loan from TD Public Finance, LLC and the execution of the related financing documents.
• Pros: Preserves fiscal flexibility and avoids incurring long-term debt obligations.
• Cons: May delay or prevent funding for planned capital improvement projects and could require alternative financing or budget reallocations.
Background Information
During the City Commission Budget Workshop held on March 13, 2025, staff presented a list of potential capital projects for consideration as part of a future borrowing program. To pursue borrowing authority through a court-validated process, the City must identify specific projects in advance for inclusion within the validation proceedings.
Staff further advised that any future decision to finance a specific project through borrowing would require separate consideration and formal approval by the City Commission. Such consideration would include, but not be limited to, an evaluation of the City's debt capacity; applicable funding source restrictions; project readiness; repayment obligations; and the City's overall financial condition. Concurrently, staff will continue to pursue grants, partnerships, and other funding opportunities to reduce the financial impact on the City and its taxpayers.
During the City Commission Regular Meeting held on April 7, 2026, (Agenda Item No. 26-0556), a motion was made to “direct the City Manager to work with financial and legal advisors to seek borrowing authority for the following capital projects: Police Headquarters in the amount of $25 million, Community Service Center ($7 million), and Dallas White Park ($2 million).”
This direction included preparation of all required documentation, legal review, financial analysis, and other actions necessary to support the validation process.
During the City Commission Regular Meeting on April 21, 2026, (Agenda Item No. 26-0661), the City Manager provided an update regarding the City's efforts to obtain court-validated borrowing authority, including a summary of the Commission's direction provided on April 7, 2026, and the borrowing priorities established by the Commission.
Consistent with the Commission's direction, PFM Financial Advisors LLC, serving as the City's financial advisor, issued a Request for Proposals (RFP) on the City's behalf to qualified financial institutions seeking financing for the identified capital projects. The City received eight (8) proposals, which were evaluated based on financing costs; interest rates; repayment flexibility; financing terms; and other criteria established in the solicitation. Following the evaluation process, TD Public Finance, LLC submitted the proposal determined to provide the most favorable financing terms and overall best value to the City.
Resolution No. 2026-R-49 represents the next step in the financing process. It authorizes the City to accept the financing proposal submitted by TD Public Finance LLC, approves the form of the related loan documents, authorizes the issuance of a promissory note in an amount not to exceed $34,125,000, and authorizes designated City officials to proceed with the financing process upon satisfaction of all required conditions. Adoption of Resolution No. 2026-R-49 does not, by itself, result in the borrowing of funds or the incurrence of debt.
Following adoption of Resolution No. 2026-R-49, the City intends to proceed with filing the validation action pursuant to Chapter 75, Florida Statutes. Execution and closing of the loan remain subject to successful completion of the court validation process; satisfaction of all closing requirements; and consideration of the City's financial position and other fiscal considerations at the time of closing. If the financing is validated by the court, all closing conditions are satisfied, and the City determines that proceeding with the financing remains in its best financial interest, the City may execute the loan documents and complete the financing. Loan proceeds will not be received, nor will any debt obligation be incurred, unless and until the financing closes.
Resolution No. 2026-R-49 has been reviewed by the City Attorney and is legally correct as to form.
Resolution No. 2026-R-49 was provided to the City Clerk’s Office on June 18, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Governance
Financial Impact
There is no direct or immediate financial impact associated with Resolution No. 2026-R-49 other than time spent by City staff in support of the Commission’s direction.
Execution and closing of the loan remain subject to completion of the court validation process; satisfaction of all closing conditions; and consideration of the City's financial position and other fiscal considerations at the time of closing. No debt obligation will be incurred unless and until the loan documents are executed and the financing closes. Upon closing, a new governmental fund will be established to account for loan proceeds not exceeding $34,125,000. Of the $34,125,000, $25,000,000 would be allocated to Phase 1 of the Police Headquarters, $7,000,000 for the Dallas White Park Cultural Center, $2,000,000 for the Community Service Center, and $125,000 for costs of issuance.
The loan term is twenty (20) years, with estimated annual loan repayment of $2.7 million, including principal and interest, subject to the final fixed interest rate established at closing. The loan may be prepaid at any time without penalty. Upon closing, the City intends to appropriate legally available non-ad valorem General Fund (Fund 001) revenues annually for debt service. Total estimated repayment over the life of the loan is approximately $54.0 million.
Procurement
Not applicable.
Attachments:
1. Resolution
2. Exhibit B
3. Exhibit C
4. April 7, 2026 Minutes
Prepared by: Tiffany Fowler, Accountant III
Department Director: Irina Kukharenko, Finance Director