TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction Regarding Funding Options for the Effluent Pumping Station & Pipeline Project.
Recommended Action
Discussion and possible direction regarding funding options for the Effluent Pumping Station & Pipeline Project.
Background Information
During the City Commission Workshop on January 6, 2025, staff provided a presentation outlining the infrastructure projects deemed essential for growth, health, welfare and the financial stability for the City Commission’s consideration including an Effluent Pumping Station & Pipeline (CIP U23EPS) with the following specifics:
1. Estimated cost: $16M
a. Funding identified: $1M
b. Funding gap: $15M
2. Current demand is reaching effluent capacity.
3. This pumping station and pipeline are needed to support future development.
4. During wet weather events such as hurricanes and tropical storms, the pipeline does not meet current treatment flow needs. This is bringing additional regulatory scrutiny from the Florida Department of Environmental Protection for unauthorized, treated sewage spills.
On February 11, 2025, the City Commission approved Ordinance No. 2025-05 which outlined a proposed referendum question for the May 13, 2025, Special Election:
“To finance capital improvements to the City’s wastewater treatment facility located on Pan American Boulevard, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $17,000,000, maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from the revenues of the City’s water and sewer utility system?”
The referendum question was not successful; therefore, the City will not be able to issue debt to finance the required improvements to the Effluent Pumping Station and Pipeline.
This project is essential for the City Utilities Department to address issues experienced the inability to properly dispose of high effluent flows at the plant and to construct improvements expected to be required in response to a Consent Order from the Department of Environmental Protection (DEP). If the project is not completed in a timely manner, the City may face fines and penalties.
Utilities staff have been working with an engineering firm and this project is a 90% plan with an estimated cost of $16 million. In order to accommodate this critical project, the Utilities Department has moved funding from other needed capital improvements, including the Wastewater Treatment Plant Improvement project (U21WWI), Building Upgrades at the Pan American Wastewater Treatment Plant (U24SBU), Raw Water Intake Structure Rehabilitation (U22WIS), and the Myakkahatchee Creek Water Treatment Plant Improvement project (U23WPI). However, delays in these projects may result in higher project costs when implemented later and will impact efficiency of operations.
Staff continue to seek alternative options for funding this project. In addition to evaluation of rates to supply needed revenues, considerations are outlined in the attached memo and include:
• Certificates of Participation (COPS)
• Public Private Partnerships (P3)
• State Revolving Fund (SRF) Loans
• Bank Loans and Lines of Credit
• Increasing Fund Balance Reserves
• Pay-As-You-Go (Pay-Go) Financing
Strategic Plan
Good Governance
Infrastructure & Facilities Integrity
Economic Development & Growth Management
Financial Impact
To be determined.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-05
2. Funding Options Failed Referendum Memo
Prepared by: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager