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 and Capital Improvement Budget for Fiscal Year 2025-2026 to Increase the Warm Mineral Springs Building Rehabilitation Project WM19BR by the Amount of $4,082,133; 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. 2026-19 as presented and move to second reading on July 7, 2026.
City Commission Options First Reading
Option 1: Approve Ordinance No. 2026-19 as presented and move to second reading on July 7, 2026.
• Pros:
o Advances the building renovation direction previously approved by the City Commission.
o Facilitates improvements that preserve the property’s historic designation.
• Cons:
o Appropriates dollars available in fund balance, that will not be available for other uses.
o Reduces existing capital improvement project for the Langlais Park Development.
Option 2: Deny Ordinance No. 2026-19 as presented.
• Pros:
o Funds planned for use could be utilized for other future programs or initiatives.
• Cons:
o Delays implementation of previously directed Warm Mineral Springs building renovation work.
o May result in construction cost escalation due to schedule delays, market conditions, or inflationary impacts.
o Increases the risk of continued deterioration of historic buildings.
Background Information
The Warm Mineral Springs Building Rehabilitation Project WM19BR currently has $12,587,596 in available funding remaining. This total reflects the remaining project balance after expenditures for the Master Plan development; the Public Private Partnership (P3) process; Hurricane Ian and plumbing repairs; and all associated design, permitting and pre-construction services. The remaining funding available for the project consists of:
Ø $2,349,749 from Warm Mineral Springs.
Ø $382,625 in Park Impact Fees.
Ø $9,855,222 in Surtax Funds.
The project scope supported by these funds includes:
Ø Historic renovation of the Admission Building.
Ø Hybrid renovation of the Spa Building.
Ø Stabilization and mothballing of the Cyclorama.
Ø Implementation of wet-floodproofing measures across project structures.
Ø Utility infrastructure and parking lot improvements.
The Guaranteed Maximum Price for the construction phase of the project is $16,669,729. To address the funding shortfall for the project, a budget amendment in the amount of $4,082,133 is proposed as follows:
Ø $245,289 from Fund 115 Environmental Protection Fund.
Ø $1,390,000 from Fund 125 Warm Mineral Springs Fund (maintaining a 20% operational reserve).
Ø $374,944 from Fund 420 Utilities Fund.
Ø $500,000 from Fund 152 Park Impact Fees Fund, reallocating from the Langlais Project (P25LPD).
Ø $1,571,900 from Fund 152 Park Impact Fees Fund.
Ordinance No. 2026-19 has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan Pillar
Economic Development & Growth Management
Financial Impact
Ø $245,289 is appropriated from the Environmental Protection Fund (115) Fund Balance.
Ø $1,390,000 is appropriated from the Warm Mineral Springs Fund (125) Fund Balance.
Ø $2,071,900 is appropriated from the Parks & Rec Impact Fee Fund (152) Fund Balance.
Ø $500,000 is reallocated from the P25LDP Langlais Park Development Capital Improvement Project, Parks & Rec Impact Fee Fund 152.
Ø $374,944 is appropriated from the Utility Revenue Fund (420) Fund Balance.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2026-19
2. Fund Balance Reports
3. Project #WM19BR Budget Tracking
4. Budget Estimate - Demo & Build New Option
Prepared by: Jake Gaub, Budget Manager
Department Director: Irina Kukharenko, CPA, Finance Director