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 Final Revisions to the Solid Waste District Methodology Study Completed by Stantec Consulting Services, Inc.
Recommended Action
Option 1: Approve the Solid Waste District Methodology Study completed by Stantec Consulting Services, Inc.
City Commission Options
Option 1: Approve the Solid Waste District Methodology Study completed by Stantec Consulting Services, Inc.
• Pros: Supports a pay-as-you-go approach for long term Solid Waste District needs by identifying revenue strategies to support ongoing operations and future capital projects, including the Solid Waste Transfer Station.
• Cons: May result in higher near-term costs for the District as revenues are adjusted to better align with current service levels and future capital needs.
Option 2: Deny the Solid Waste District Methodology Study completed by Stantec Consulting Services, Inc.
• Pros: Avoids near term changes to Solid Waste Districts rates, reducing immediate financial impacts on residents and businesses.
• Cons: Limits the District’s ability to plan for and fund long term operational and capital needs, increasing the potential for deferred infrastructure investment, service constraints, or higher costs in the future.
Background Information
Based on current and anticipated growth and market conditions, the Department of Public Works identified the need to update the Solid Waste District’s rate methodology. To support this effort, Public Works engaged Stantec Consulting Services, Inc. (Stantec) to refine the methodology, allocations, revenue sufficiency, rate structure, and long term financial projections for Solid Waste District collection fees.
The study evaluates multiple factors including population growth, operating expenses, and service demands. It includes a comprehensive Cost of Service (COS) Analysis and Revenue and Expense Projections (REP), providing recommended Solid Waste District rates for the next five fiscal years, along with financial projections through Fiscal Year 2035.
Results of the baseline revenue sufficiency analysis indicate that the primary focus for rate adjustments should be within Solid Waste District Fund 120. Based on this analysis, the Department of Public Works and Stantec presented assessment options for funding the Solid Waste Transfer Station to the City Commission during the January 5, 2026 workshop. During this workshop, the City Commission made the following consensus:
Ø “To use the density-based assessment for this project.”
The chart below reflects that options selected, to use a density-based (per-unit) assessment with the use of a one-time Fiscal Year 2027 transfer station assessment.
Forecasted assessment rates through FY2031 are provided below to demonstrate how the approved methodology could be applied over time. These projections are illustrative only and do not represent adopted or approved rates. Future Solid Waste District rates will be determined through the annual budget process and are subject to separate City Commission approval.
|
|
FY2026 |
FY2027 |
FY2028 |
FY2029 |
FY2030 |
FY2031 |
|
Residential |
10.00% |
0.00% |
7.50% |
7.50% |
7.5% |
7.5% |
|
Commercial |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
10.00% |
|
Transfer Station Assessment |
$0 |
$128.02 |
$0 |
$0 |
$0 |
$0 |
|
Residential Assessment |
$332.75 |
$460.76 |
$357.71 |
$384.53 |
$413.37 |
$444.38 |
Following further evaluation, staff recommends City Commission consideration of implementing this Methodology as presented. This approach meets the objectives established for the Solid Waste District Methodology Study and will provide a lower overall assessment change to residents over the course of the five-year period.
Strategic Plan Pillar
Infrastructure & Facilities Integrity
Financial Impact
Financial impact to Solid Waste District revenues, expenditures and fees based on the scenario approved for implementation.
Procurement
The services for the Methodology study were procured pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-403 - Exemptions, (a), (4), a, of the Code of the City of North Port, the utilization of other governmental or public entity contracts to procure goods and services.
Attachments:
1. Final Methodology Study
Prepared by: Garrett Woods, CPWP-M, Senior Business Manager
Department Director: Chuck Speake, Public Works Director