TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction on Potential Referendum Language to Amend Section 1.02(b) of the Charter of the City of North Port Related to the City's Authority to Issue General Obligation and Revenue Bonds.
Recommended Action
Discussion and possible direction to provide direction to staff in the development of referendum language to amend the Section 1.02 (B) of the Charter of the City of North Port related to the City’s authority to Issue General Obligation and Revenue Bonds.
Background Information
The following provides a chronological order of events regarding referendum language to amend Article I - Creation, Powers, and Construction; Section 1.02 - Powers (b) of the North Port City Charter related to the City's authority to issue debt:
Ø November 8, 2022: During the City Commission Regular Meeting, the Commission directed staff to start process of reviewing discussion regarding a referendum that would go out in the next election cycle to change the Charter to allow the City to issue general obligations or revenue bonds in the future.
Ø December 4, 2023: During the City Commission Workshop, the Commission provided the following consensus:
ü There was consensus to direct the City Attorney and City Manager to come back with a proposed Charter amendment based on Option 1 with consideration of some caps for Commission review.
Ø December 20, 2023: During the Charter Review Advisory Board Meeting, the Charter Review Advisory Board reviewed the proposed amendments to the Charter’s requirements. The following action was taken:
ü To recommend to City Commission approval of Option 1 stating that the Commission may authorize debt for Declared Local, State, or Federal Emergency and/or Public Health and Safety to include response to regulatory agency, infrastructure, including roads, bridges, water control structures, sanitation, water and sewer, and police, fire and declared disaster.
ü To recommend to City Commission a debt limit of $25 million with an annual increase based on consumer price index (CPI).
Pursuant to the Commission’s directive, the City Attorney, City Manager and staff held meetings regarding the Charter amendment and offer the following recommendations for the Commission’s review and consideration:
1. The City Charter should be amended to authorize the Commission to incur debt to respond to a declared local, state, or federal emergency or disaster and for safety or public health to include response to a regulatory agency, infrastructure, including, but not limited to, roads, bridges, water control structures, sanitation, water and sewer, and police, fire, and declared disaster.
2. The City Charter should be further amended to limit any such debt issued prior to October 1, 2025, to a maximum principal amount of $28 million per project, excluding public safety and that beginning October 1, 2025, and each October 1 thereafter, the principal amount of debt limitation in effect shall be adjusted to reflect the percentage change in the Engineering News and Record (ENR) Construction Cost Index by using the most recent available information for the prior 12-month period.
3. City staff in coordination with a Consultant and Stakeholders will conduct an educational campaign regarding the following:
Ø Referendum language to amend Article I - Creation, Powers, and Construction; Section 1.02 - Powers (b) of the North Port City Charter related to the City's authority to issue debt.
Ø Referendum ballot questions.
4. Staff will present the Ordinance to the City Commission for their review and consideration in June 2024 authorizing the referendum questions to be placed on the November 5, 2024, ballot for consideration by the City’s electors.
Strategic Plan
Good Governance
Financial Impact
To be determined based on Commission direction and will be included in the next step of the process.
Procurement
City procurement policies and procedures will be followed for any related procurement.
Attachments:
1. November 8, 2023 Commission Regular Meeting Minutes
2. December 4, 2023 Commission Workshop Minutes
3. December 20, 2023 Charter Review Advisory Board Action Items
4. Working Draft of Proposed Charter Language
Prepared by: A. Jerome Fletcher II, ICMA-CM, City Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, City Manager