TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding Seeking Borrowing Authority for a Specific List of Capital Projects.
Recommended Action
Option 1: Direct staff to work with financial and legal advisors to seek borrowing authority for the following capital projects: Fire Station A, Community Service Center, Dallas White Park Cultural Center, Water/Wastewater Expansion, Effluent Pump Station, Parks Maintenance Operations Building/Complex, and Italy Avenue Community Park.
City Commission Options
Option 1: Direct staff to work with financial and legal advisors to seek borrowing authority for the following capital projects: Fire Station A, Community Service Center, Dallas White Park Cultural Center, Water/Wastewater Expansion, Effluent Pump Station, Parks Maintenance Operations Building/Complex, and Italy Avenue Community Park.
• Pros: Establishes a specific list of capital projects that the City will seek borrowing authority for using a court validated process. Projects on the list would be eligible but borrowing for funding purposes would not be required. Recommended projects are based on priority ranking, feasibility, and prior City Commission feedback and actions.
• Cons: Will require funding for debt service.
Option 2: Direct staff to work with financial and legal advisors to seek borrowing authority for the following capital project(s) [insert list of projects]:
• Pros: Establishes a specific list of capital projects that the City will seek borrowing authority for funding purposes.
• Cons: Will require funding for the debt service.
Option 3: Provide direction to not move forward with a borrowing scenario for a pre-determined specific list of capital projects.
• Pros: The City will not need to go through the process to seek borrowing authority to complete these capital projects.
• Cons: Projects will remain unfunded and/or in competition for limited funds available in the current budget year while these projects still remain necessary. Project costs will continue to increase.
Background Information
During the City Commission Budget Workshop held on March 13, 2025, staff presented potential projects for consideration as part of a future borrowing program. To seek borrowing authority through a court-validated process, the City must identify a specific list of projects in advance. Inclusion on the approved list is intended solely to preserve the City’s ability to respond to future needs and priorities and to support long-term financial planning for potential financing, if and when it is determined to be financially viable, necessary, and appropriate. Listing a project on the court-validated schedule does not constitute approval to move forward with borrowing; does not authorize funding; and does not obligate the City to issue debt. Any future decision to proceed with borrowing for a specific project would require additional review, analysis, and formal approval by the City Commission at that time. Such consideration would include a separate evaluation of debt capacity, funding source restrictions, and the City’s overall financial position. In parallel, staff will continue to pursue grants, partnerships, and cost-saving opportunities to minimize the City’s financial impact.
The following is a description of the projects staff recommend pursuing:
(1) The Community Service Center: The project cost is $2 million and includes the demolition of the existing Community Service Center and construction of a 5,000 square foot pre-engineered metal building for use by non-profit organizations to service the residents of North Port. This project has previously been discussed by the Commission, including both repair and demolition options.
(2) Dallas White Park Culture Center: The project cost is $7 million and includes a proposed 11,500 square foot, two story building with 3 classrooms, flexible studio space, and second floor areas for revenue generation or share nonprofit use. The facility is intended to support cultural, educational, and community programming.
(3) Fire Station A: The project cost is $8 million and includes the purchase of land, design, and construction of a new fire station north of Interstate 75 and North Toledo Blade Boulevard, along with the fire trucks and equipment needed to serve the area. This station will help support growth in the corridor by improving public safety and helping the City keep reliable emergency response as new development occurs. It also shows the City is making an important investment in this area, which can make the corridor more attractive for future homes, businesses, and jobs.
(4) Water/Wastewater Expansion: The project cost is $20 million and extends water/wastewater to residents throughout the City in a methodical, economical manner to maximize efficiency and minimize cost. This project is being done in coordinator with U26NEP, which is primarily the grant funded portion of the overall project.
(5) Effluent Pump Station: The project cost is $17 million and is necessary to ensure that high flows during heavy rain events can be properly managed to meet all regulatory requirements. Due to the high priority of this project, funding has been reallocated from other capital improvement projects. This project is a strong candidate for funding through a low-interest State Revolving Fund Loan, which would help reduce the immediate financial burden by allowing costs to be financed over a period of time, rather than funded all at once. Staff are currently working with West Villages Improvement District to identify a project approach that would meet the City’s regulatory compliance requirements while also supporting reclaimed water needs in Wellen Park. This effort includes evaluating potential cost-sharing opportunities to reduce the City’s overall project expenses.
(6) Park Maintenance Operations Building/Complex: The project cost is $7 million. Due to the severe impacts of Hurricane Ian, the existing Park Maintenance building and ancillary storage areas were deemed unusable. For the past three years, Parks Maintenance staff have been operating out of temporary trailers. This project would provide permanent workspaces for Parks Maintenance staff, as well as secure storage for vehicles and equipment. This project addresses an operational necessity created by hurricane damage. The City has already committed some resources to it, and staff and the Commission have repeatedly shifted capital funds into the project from multiple sources.
(7) Italy Avenue Community Park, $16 million, this project is high-priority because it addresses the City’s biggest park-service gaps on the east side of the City and residents lack close-to-home park access and walkable neighborhood parks. This project directly supports the Parks & Recreation Master Plan which was approved by Commission on December 9, 2025. During that meeting, there was discussion and potential interest in identifying funding opportunities to advance this project on the priority list and accelerate its implementation. The project is currently unfunded and programmed for future consideration in 2031.
Strategic Plan Pillar
Good Governance
Financial Impact
Any future borrowing associated with these projects would require funding for debt service.
Procurement
Not applicable at this stage.
Attachments:
1. Capital Projects Slide
Prepared by: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager