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 2024-2025 for Budgeting Bond Proceeds and Debt Service for Price Boulevard Project R15PW1 in the Amount of $64,221,510; Providing for Findings; Providing for Posting; Providing for Conflicts: Providing for Severability; and Providing an Effective Date.
Recommended Action
Continue Ordinance No. 2024-45 to second reading on December 10, 2024 as presented.
Background Information
In 2022, voters approved a referendum to borrow up to $80 million in bonds payable from the County Surtax IV revenues for the Price Boulevard Project R15PW1. On October 23, 2024, the City received the debt proceeds in the amount of $55,335,440 and a debt service reserve equal to the amount of the largest debt service payment in the amount of $5,261,750. This request will budget the debt proceeds amount in a new fund (Price Construction Bonds Fund 331) for the construction of the project. The debt proceeds will be split with $55,000,000 towards infrastructure costs and $335,440 towards bond issuance costs.
The debt service reserve amount of $5,261,750 will be recorded in the Surtax Fund 306. This will be a restricted fund balance amount and cannot be used for any expenses in the fund. It will remain in the fund until the end of the bond payments.
The required debt service payment for Fiscal Year 2025 in the Surtax Fund will be $3,624,320 of which $1,770,000 will be the principal payment and $1,854,320 the interest payment. This will be funded from Surtax Fund balance.
Ordinance No. 2024-45 has been reviewed by the Interim City Attorney and is legally correct as to form.
Strategic Plan
Good Governance
Financial Impact
* Surtax Fund (306) - Debt Proceeds in the amount of $5,261,750 will be recorded in this fund as a restricted fun...
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