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 Funding Options for the Solid Waste Transfer Station.
Recommended Action
Discussion and possible direction regarding funding options for the Solid Waste Transfer Station.
Background Information
Ordinance 2025-04 was approved on second reading on February 11, 2025, which allowed the following referendum question to be placed on the May 13, 2025, North Port Special Election:
“To finance a new solid waste transfer station, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $14,000,000 maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from the revenues of the City’s Solid Waste District?”
The referendum question was not successful at the May 13, 2025, special election, therefore the City will not be able to issue debt to complete the Solid Waste Transfer Station Project.
On January 6, 2025, during the City Commission Workshop, staff provided a presentation outlining the infrastructure projects deemed essential for growth, health, welfare, and the financial stability for the City Commission’s consideration including the Solid Waste Transfer Station (CIP SW22TS) with the following specifics:
1. Estimated cost $15M.
a. Funding available: $2.5M
b. Funding gap: $12.5M
2. Development of the transfer station will allow increased efficiencies, reduce travel time, and impacts on vehicles and equipment.
3. Without the development of a transfer station, Solid Waste will need to hire additional staff and increase fleet size to support multiple trips to the landfill daily. This will result in significant increases which will be higher than normal in the Solid Waste Assessment over time.
The Solid Waste Division has absorbed an average of 30-40 new residential customers per week for over one year. This has been possible only due to efficiencies previously enacted by the Solid Waste Division including redesigned routes where collection occurs only on one side of the road to avoid multiple trips down the same road, and the implementation of both recycling and yard waste transfer stations.
With all efficiencies in place, without a transfer station, the Solid Waste Division will either need to reduce the level of service or will need to increase staff and collection trucks and equipment to keep pace with the demand driven by population growth.
Staff have evaluated potential level of service modifications as outlined below:
|
Level of Service Change Option |
Potential Concerns |
|
Reduce collection of household waste from weekly to every two weeks |
May create health issues, invite pest issues due to aging uncollected trash |
|
|
Residents may seek unsupported alternatives to deal with trash, such as illegal dumping |
|
Discontinue free bulk pick-up collections |
Residents may seek unsupported alternatives to deal with trash, such as illegal dumping |
|
Discontinue recycling program |
Discontinuation would result in the programs benefit of waste reduction and a financial burden of $1,048,917 per year |
Continuing at the current level of service without a transfer station will require additional staff and equipment. In order to meet these needs, the Fiscal Year 2026 assessment will be increased by 10% and a methodology study to further evaluate operations and funding will be launched in 2026 with a target to include recommendations within the Fiscal Year 2027 budget.
Had the referendum been successful and the City was able to secure revenue bonds for the development, funding for the transfer station would have been spread across the life of the bond, anticipated to have been 30 years, with an estimated monthly impact to residents of $2. In order to fund the project directly from assessments via a pay as you go model, the Division’s consultant has outlined potential assessment increases of $60 in Fiscal Year 2027 and $70 in Fiscal Year 2028. The assessments are expected to reduce / level off after the capital project costs are secured.
Staff continues to seek alternative options for funding this project. In addition to evaluation of rates to supply needed revenues, considerations are outlined in the attached memo and include:
• Certificates of Participation (COPS)
• Public Private Partnerships (P3)
• State Revolving Fund (SRF) Loans
• Bank Loans and Lines of Credit
• Increasing Fund Balance Reserves
• Pay-As-You-Go (Pay-Go) Financing
• Evaluation of Capital Project funding participation via assessment of all properties, not just current customers
Strategic Plan
Good Governance
Infrastructure & Facilities Integrity
Economic Development & Growth Management
Financial Impact
To be determined.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-04
2. December 5, 2022, Workshop Minutes
3. Solid Waste Transfer Station Flier
4. Funding Options Failed Referendum Memo
Prepared by: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager