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, Adopting the Non-District Budget for the Fiscal Year Beginning October 1, 2025, and Ending September 30, 2026; Adopting the Capital Improvement Budget and Program; Prescribing the Terms, Conditions, and Provisions with Respect to the Items of Appropriations and Their Payment; Providing for Supplemental Appropriations and Reappropriations; Providing for Findings; Providing for Posting of the Budgets; Providing for Conflicts: Providing for Severability; and Providing an Effective Date.
Recommended Action
Option 1: Approve Ordinance No. 2025-25 on first reading and move to second reading on September 18, 2025.
Recommended Action on Second Reading
New Option 1: Amend Ordinance No. 2025-25 to exclude funding for budget proposals related to elevating the Communications and Information Technology Divisions to Departments.
City Commission Options
Option 1: Amend Ordinance No. 2025-25 to exclude funding for budget proposals related to elevating the Communications and Information Technology Divisions to Departments.
* Pros: Reduces the General Fund budget by $107,330 by eliminating funding for the following:
o Budget Proposal 3213: Reclassify Communications Manager to Director ($47,260)
o Budget Proposal 2983: Reclassify Information Technology Manager to Director ($52,370)
o Budget Proposal 3150: Reclassify Assistant Director (IT) ($7,700)
This reduction could be applied to decrease the use of fund balance required to balance the budget.
* Cons: The City Commission may prefer to retain funding for these proposals in support of transitioning the Communications and Information Technology Divisions into full Departments.
Option 2: Approve the Non-District Budget and Capital Improvement Budget and Program for Fiscal Year 2026, as presented.
* Pros: The City follows the Truth in Millage (TRIM) timeline for approving and advertising the budget; does not risk loss of State shared revenues for not being compliant; and continuity of operations by having the budget approved for Fiscal Year 2026.
* Cons: Limits the opportunity to incorporate City Commission requested changes before adoption.
Option 3: Amend the Non-District Budget and Capital Improvement Budget and Program for Fiscal Year 2026 for changes to be made for second reading.
* Pros: Allows the City Commission to incorporate desired adjustments to the budget prior to adoption.
* Cons: Introducing changes at this stage may require additional staff analysis or updated documentation.
Background Information
The following provides a chronological order of events regarding the Non-District Budget and Capital Improvement Budget and Program for Fiscal Year 2026:
> March 12, 2025: During the City Commission Workshop, the City Commission set the budget assumptions, projections and priorities to prepare for the Fiscal Year 2025-2026 budget.
> June 16, 2025, and June 17, 2025: City Commission Workshops were held to present the City Manager's Recommended Budget and the Capital Improvement Program.
> July 23, 2025: An additional City Commission Workshop was held to discuss the final direction by the City Commission. Based on direction from the City Commission, the Tentative Budget for Fiscal Year 2025-2026 for the Non-Districts and Capital Improvements was prepared as follows:
General Fund
$97,562,860
Special Revenue Funds
$39,493,420
Debt Service Funds
$2,518,400
Internal Service Funds
$25,816,890
Utility Funds
$68,807,870
Capital Funds
$27,924,510
Total Non-District
$262,123,950
Ordinance No. 2025-25 has been reviewed by the Interim City Attorney and is legally correct as to form.
Changes on Second Reading
New Option 1 added above.
Should the Commission approve the new option 1 and the use of fund balance in the general fund is reduced from this amendment, the amended total non-district budget summary would be:
General Fund
$97,455,530
Special Revenue Funds
$39,493,420
Debt Service Funds
$2,518,400
Internal Service Funds
$25,816,890
Utility Funds
$68,807,870
Capital Funds
$27,924,510
Total Non-District
$262,016,620
Strategic Plan Pillar
Good Governance
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-25
2. Changes since July 23
3. General and Building Fund Balance Reports
Prepared by: Lisa Herrmann, Budget and Performance Manager
Department Director: Irina Kukharenko, CPA, Interim Finance Director