TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Calling for a Referendum Question to be Placed Before the Qualified Electors of the City of North Port, Florida at the November 5, 2024 General Election; Providing a Referendum Question Determining Whether to Amend the City Charter to Authorize the City Commission to issue Debt in Certain Circumstances Without Prior Voter Approval; Providing for the Full Text of the Proposed Charter Amendment; Providing Findings; Providing for an Effective Date for the New Charter Language if the Proposed Charter Amendment is Approved; Providing for the Filing of the Ordinance with the Sarasota County Supervisor of Elections; Providing for Publication of the Text of the Proposed Charter Amendment; Providing for Filing with the Florida Department of State if the Proposed Charter Amendment is Approved; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Continue Ordinance No. 2024-07 to second reading on July 23, 2024.
Recommended Action for Second Reading
The City Commission adopt Ordinance No. 2024-07.
Background Information
During a Special Commission Meeting on June 26, 2024, the City’s Bond Counsel and Financial Advisor participated in the discussion on proposed Charter options. During this meeting, the City Commission approved the following motions to:
Ø Direct staff to insert referendum language establishing a $15 million principal cap per non-emergency project.
Ø Direct staff to include language proposed by Mr. Miller, Bond Counsel, clarifying that debt service would be payable from funds other than property taxes.
Ø Direct the City Attorney to include language to the Charter ordinance that the issuance of non-emergency debt cannot be conducted using an emergency ordinance.
Ø Include Charter language to state the Debt Management Policy will be adopted by Commission via Resolution with two readings.
Proposed Ordinance 2024-07 reflects the direction provided by the City Commission during the Special Meeting and, the proposed ballot question has been amended to read as follows:
Florida local governments may issue certain debt for various governmental purposes. The City Charter requires voter approval before the City issues any debt. Should the Charter be amended, allowing the City to issue debt payable from funds other than property taxes without voter approval: (i) for safety and public health projects with a maximum principal amount of $15,000,000, increasing annually based on a cost index; and (ii) to respond to a declared emergency or disaster?
In addition, during the City Commission Special Meeting held on June 26, 2024, the City Commission made the following motions to:
Ø Direct the City Manager and City Clerk to schedule a debt policy workshop in September with the final adoption to be held prior to the November referendum.
Ø Rescind prior direction given regarding bond counsel presence at first reading of the Charter Referendum.
The Debt Management Policy is scheduled for discussion during the City Commission Workshop on September 9, 2024.
Pursuant to Florida Statures Section 166.041(4)(c), a business impact estimate is not required because Ordinance No. 2024-07 relates to the issuance or refinancing of debt.
Revisions for Second Reading - Charter Language in Section 2.02 of Ordinance No. 2024-07
The City Commission heard this item during the City Commission Regular Meeting on July 9, 2024. During this meeting, the City Commission approved the following motions to:
Ø Direct the City Attorney to work with bond counsel to provide clarity regarding principal indebtedness and obligation meaning and purpose.
Ø Add language within the Ordinance, prior to second reading, stating that general obligation debt will go to voters.
Ø Continue Ordinance 2024-07 to second reading on July 23, 2024.
The following outlines the revisions to Ordinance 2024-07 for second reading:
1. Charter Section 1.02(b)
a. First reading: Except as otherwise provided in subsection (c) below, No general obligation or revenue bonds shall be issued by the City of North Port shall not incur debt unless approved by majority vote of the voters of the City of North Port voting on the issuance of those bonds in a primary, general, or special election.
b. Second reading: Except as otherwise provided in subsection (c) below, the City of North Port shall not issue No general obligation or revenue bonds shall be issued by the City of North Port unless approved by majority vote of the voters of the City of North Port voting on the issuance of those bonds in a primary, general, or special election.
2. Charter Sec. 1.02(c)2(b)(i)
a. First reading: Prior to October 1, 2025, the principal indebtedness or obligation incurred by the City to address safety or public health shall be in a principal amount no greater than Fifteen Million Dollars ($15,000,000.00) per project. Any instrument of indebtedness in a principal amount exceeding a project’s indebtedness or obligation limitation must be approved by majority vote of the voters of the City of North Port in a primary, general, or special election. The City shall not avoid the requirements in this section by separating a single, simultaneous, or concurrent project into parts to avoid the limitation set forth herein.
b. Second reading: Prior to October 1, 2025, the indebtedness incurred by the City to address safety or public health shall be in a principal amount no greater than Fifteen Million Dollars ($15,000,000.00) per project. Any instrument of indebtedness in a principal amount exceeding a project’s indebtedness limitation must be approved by majority vote of the voters of the City of North Port in a primary, general, or special election. The City shall not avoid the requirements in this section by separating a single, simultaneous, or concurrent project into parts to avoid the limitation set forth herein.
3. Charter Sec. 1.02(c)2(b)(ii)
a. First reading: Beginning October 1, 2025 and each October 1 thereafter, the maximum principal amount of indebtedness or obligation the City may incur to address safety or public health shall be adjusted to reflect the percentage change in the Engineering News and Record (ENR) Construction Cost Index by using the most recent available information for the prior 12-month period.
b. Second reading: Beginning October 1, 2025 and each October 1 thereafter, the maximum principal amount of indebtedness the City may incur to address safety or public health shall be adjusted to reflect the percentage change in the Engineering News and Record (ENR) Construction Cost Index by using the most recent available information for the prior 12-month period.
4. Charter Section 6.01
a. First reading - “City Clerk is directed make…”
b. Second reading - “City Clerk is directed to make…”
Strategic Plan
Good Governance
Financial Impact
To be determined.
Procurement
Not applicable.
Attachments:
1. Ord. No. 2024-07 - Second Reading
2. Draft July 9 2024 Commission Regular Meeting Minutes.pdf
3. Presentation - First Reading
4. Ord. No. 2024-07 - First Reading
5. Commission Meeting Action Report June 26, 2024
Prepared by: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager