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; Amending the Non-District Budget for Fiscal Year 2025-2026 for Increased Impact Fee Reimbursement and Increased Tax Collector Fees in the Amount of $352,121; Providing for Findings; Providing for Posting; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action First Reading
Option 1: Approve Ordinance No. 2026-36 as presented and move to second reading on November 17, 2026.
City Commission Options First Reading
Option 1: Approve Ordinance No. 2026-36 as presented and move to second reading on November 17, 2026.
• Pros: Ensures compliance with Florida Statutes Section 166.241(9) by adopting the final Fiscal Year 2026 budget amendment within the required 60‑day post‑fiscal‑year period. Prevents the Tax Collector Fee account in Fund 205 from remaining overspent if the anticipated refund arrives at an amount lower than expected. Aligns expenditure budgets with actual Fiscal Year 2026 transactions, including required adjustments for the Transportation Impact Fee Reimbursement Agreement. Supports transparent and accurate financial reporting by correcting budget variances before year‑end closeout. Avoids operational or audit concerns that could arise from leaving overspent accounts unaddressed.
• Cons: Increases the formal budget authority for Fiscal Year 2026, which may be perceived as expanding expenditures even though changes reflect actual activity. If the Tax Collector refund ultimately exceeds expectations, the amendment may prove larger than necessary.
Option 2: Deny Ordinance No. 2026-36 as presented.
• Pros: There are no foreseeable operational or statutory advantages to denying the Ordinance.
• Cons: Creates risk of noncompliance with Florida Statutes Section 166.241(9) if overspent accounts are not corrected within the required 60‑day window. Leaves the Tax Collector Fee account in Fund 205 overspent until the refund is received, and it is not reasonable to assume the refund will fully offset the current deficit. Results in inaccurate budget alignment for Fiscal Year 2026, particularly for expenditures required under the Transportation Impact Fee Reimbursement Agreement. Could lead to audit findings or questions regarding budget management and adherence to statutory procedures.
Background Information
Florida Statutes Section 166.241(9) provides 60 days following the end of a fiscal year to amend a budget and requires that a budget amendment be adopted in the same manner as the original budget. Ordinance No. 2026-36 represents the final budget amendment for Fiscal Year 2025-2026.
The tax collector fee account budget for the Road Reconstruction Bond Debt Servicing (Fund 205) is overspent in Fiscal Year 2026. Historically, this account does exceed budget throughout the fiscal year, but the city receives an excess distribution credit from the Sarasota County Tax Collector. Due to the timing of the refund distribution, the 60-day allowable period to amend the budget, and the City Commission schedule in November, it is not reasonable to assume the refund will be greater than the amount currently overspent in Fiscal Year 2026 and the Finance Budget team is seeking an amendment to ensure the account will not be overspent after the anticipated refund distribution is received.
The Transportation Impact Fee Reimbursement Agreement was entered into by and among the Wellen Park, LLLP, the West Villages Improvement District (WVID) and the City of North Port. The Agreement requires annual payments from the City to WVID. In Fiscal Year 2026, the City estimated $3,868,380 in transportation impact fee revenues from WVID, and $2,733,090 in payments back to WVID. Actual collections in Fiscal Year 2026 were $4,473,790.73, and actual payments back to WVID were $3,070,210.22. This amendment will realign the expenditure budget in account 153-5000-541.81-02, increasing by $337,121 from $2,733,090 to $3,070,211.
Ordinance No. 2026-36 has been reviewed by the City Attorney and is legally correct as to form.
Ordinance No. 2026-36 is exempted from the business impact estimate requirement per Florida Statute Section 166.041(4)(c) as it relates to the adoption of budgets or budget amendments, including revenue sources necessary to fund the budget.
Ordinance No. 2026-36 was submitted to the City Clerk’s Office on October 26, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Governance
Financial Impact
|
Account Number |
Account Name |
Amount |
|
205-0000-389.90-00 |
Use of Fund Balance |
$15,000 |
|
205-5000-541.49-30 |
Tax Collector Fees |
$15,000 |
|
153-0000-324.32-01 |
Commercial Transportation / WVID |
$337,121 |
|
153-5000-541.81-02 |
Capital Contribution - WVID |
$337,121 |
Procurement
Not Applicable
Attachments:
1. Ordinance No. 2026-36
2. Fund Balance Reports
Prepared by: Jake Gaub, Budget Manager
Department Director: Irina Kukharenko, CPA, Finance Director