TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: A Resolution of the City Commission of the City of North Port, Florida, as the Governing Body of the North Port Road and Drainage District, Adopting, Certifying, and Confirming the Non-Ad Valorem Assessment Rates and Capital Improvements Assessment Rates and Adopting and Certifying the Non-Ad Valorem Assessment Roll for the North Port Road and Drainage District for Fiscal Year 2024-2025; Providing for Findings; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution No. 2024-R-44 as presented.
Background Information
Chapter 66, Article III of the Code of the City of North Port, Florida, establishes the Road and Drainage District and outlines the District’s authority to levy and collect non-ad valorem assessments in order to provide funds to support the purpose of the District. Section 66-52 requires that methodology and rates be reviewed at least once every four years.
The Department of Public Works contracted Stantec Consulting Services, Inc. to complete an evaluation of current and anticipated growth and market conditions to refine the methodology, allocation, sufficiency, rates, and future projections for the Road and Drainage District Assessment Fee. The study highlighted the need to increase assessments and provided a phased approach with a 15% increase in Fiscal Year 2024-2025 and 15% increase in Fiscal Year 2025-2026.
Also, pursuant to Section 66-56 of the Code of the City of North Port, Florida, and in accordance with Florida Statues Section 197.3632, the Governing Body shall state its intention to use the uniform method for the levy, collection, and enforcement of non-ad valorem assessments. The annual assessments shall be placed on the annual ad valorem property tax bill of the assessed property and shall be collected by the Tax Collector of Sarasota County. The Governing Body shall certify the non-ad valorem special assessment roll on compatible electronic medium to the Tax Collector in and for the County of Sarasota pursuant to Florida Statutes Section 197.3632(5) on or before September 15 of each year.
During the March 30, 2023, Road and Drainage District Meeting, the City Commission, acting as the Governing Body for the Road and Drainage District, approved the Methodology Study completed by Stantec Consulting Services, Inc., which included rate increases of 25% in FY2024, and 15% increase for both FY25 and FY26.
During the September 7, 2023, Road and Drainage District Meeting, the City Commission, acting as the Governing Body for the Road and Drainage District, adopted the option to increase assessment rates up to a maximum of 15% per year to allow the District to react to future unforeseen circumstances without having to update the Methodology, sending first class mail notices and conducting special hearings.
The City Commission of the City of North Port, Florida, in its capacity as the Governing Body of the District, has the ability to increase rates for Fiscal Year 2024-2025 to maintain sufficient revenue to meet the District’s financial needs.
Accordingly, the Road and Drainage District non-ad valorem assessment rates to be adopted through this Resolution for Fiscal Year 2024-2025 represent a 15% increase as follows:
|
Assessment Rates per Unit by Service Component |
Fiscal Year 2023-2024 |
Fiscal Year 2024-2025 |
|
Administrative Services |
Per Parcel |
$6.11 |
$7.02 |
|
Base Road Services |
Per Road Equivalent Unit |
$14.24 |
$16.38 |
|
Enhanced Road Services |
Per Road Equivalent Unit |
$55.52 |
$63.85 |
|
Primary Drainage (Drainage I) |
Per Drainage Unit (acreage based) |
$36.20 |
$41.63 |
|
Secondary Drainage (Drainage II) |
Per Drainage Unit (acreage based) |
$27.75 |
$31.91 |
|
Tertiary Drainage (Drainage III) |
Per Drainage Unit (acreage based) |
$80.31 |
$92.36 |
Additionally, the North Port Road and Drainage District Capital Improvements non-ad valorem assessment rates to be adopted for Fiscal Year 2024-2025 are as follows:
|
Capital Improvements Assessment Rates per Unit by Service Component |
|
Base Road |
$4.38 per Parcel* |
|
Enhanced Road |
$41.62 per Parcel* |
|
*“Parcel” refers to each parcel in existence as of the Fiscal Year 2013-2014 capital improvements non-ad valorem assessment roll. Parcel splits or combinations will result in the assessment increasing or decreasing accordingly for each new parcel. |
The Department of Public Works will submit a Resolution annually for each additional increase identified within the methodology and rate study for consideration during the appropriate fiscal year budget preparation.
Resolution No. 2024-R-44 has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan
Infrastructure & Facilities Integrity
Good Governance
Financial Impact
The anticipated net revenue from Road and Drainage District non-ad valorem assessments for Fiscal Year 2024-2025 from 76,729 parcels is $18,927,610.
Procurement
Not applicable.
Attachments:
1. Resolution No. 2024-R-44
2. March 30, 2023 Meeting Minutes
3. September 7, 2023 Meeting Minutes
Prepared by: Garrett Woods, Senior Business Manager
Department Director: Chuck Speake, Public Works Director