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 a City of North Port Debt Management Policy and Debt Finance Committee
Recommended Action
Discussion and Possible Direction Regarding a City of North Port Debt Management Policy and Debt Finance Committee.
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 provided the following direction regarding the Debt Management Policy:
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 Include Charter language to state the Debt Management Policy will be adopted by Commission via Resolution with two readings in Ordinance 2024-07. This ordinance was approved on second reading on July 23, 2024.
The attached draft Debt Management Policy provides guidance on issuance debt with the following objectives:
Ø Ensure fiscal sustainability
Ø Evaluate debt affordability
Ø Promote transparency, accountability and reporting compliance
Ø Structure debt efficiently
Ø Utilize appropriate debt instruments
Ø Preserve and enhance creditworthiness and investor confidence
Ø Support capital improvement projects
Ø Ensure legal and regulatory compliance
The proposed policy also includes information and criteria regarding the development of a Debt Finance Committee. This group will be comprised of five (5) qualified North Port citizens tasked with reviewing and making recommendations to the City Commission on:
Ø Financing options for the unfunded capital projects list
Ø Specific financing proposals under consideration for City borrowing
Ø Debt evaluation related to current and future debt options and challenges
Ø Proposed updates or modifications to the debt management policy
In addition to the appointed members, the Committee will be advised by the Mayor, Vice-Mayor, or designated Commissioner, the City Manager or designee, the Finance Director or designee and the City’s outside financial advisor.
Approval of a Commission Policy - Debt Management Policy will be conducted via two readings of a resolution. Approval of the Debt Finance Committee will be conducted via two readings of an ordinance. The first reading for both items is tentatively scheduled for October 8, 2024, and the second reading for October 22, 2024.
Strategic Plan
Good Governance
Financial Impact
To be determined.
Procurement
Not applicable.
Attachments:
1. Draft Debt Management Policy
2. Ord. No. 2024-07
3. June 26, 2024 Special Meeting Minutes
Prepared by: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher, II, ICMA-CM, MPA, City Manager