TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction Regarding the Fiscal Year 2027 Electric Utility Tax Fee Reduction, Budget Proposal 3570.
Recommended Action
Discussion and possible direction regarding the Fiscal Year 2027 Electric Utility Tax Fee Reduction, Budget Proposal 3570.
City Commission Options
Option 1: Retain Budget Proposal 3570 in an approved status and include Budget Proposal 3570 in the Fiscal Year 2027 Tentative Budget scheduled for the City Commission Special Meeting on September 10, 2026.
* Pros: Continues progress to achieve tax reduction. An eventual tax reduction would directly lower electricity bills, helping households manage increasing living costs and making local businesses more competitive. Would also show signs of fiscal responsiveness, especially in times of inflation and rising energy prices.
* Cons: Reduces the forecasted revenue for Fiscal Year 2027 to the City. Less revenue reduces unrestricted funding for General Fund programs such as Police, Fire, Parks, and several others.
Option 2: Deny Budget Proposal 3570 and do not include Budget Proposal 3570 in the Fiscal Year 2027 Tentative Budget scheduled for the City Commission Special Meeting on September 10, 2026.
* Pros: Aligns to proactive financial planning while the statewide Property Tax Reform referendum is pending voter approval. Lowers the burden on City programs dependent on General Fund dollars, such as Police, Fire, Parks, and several others.
* Cons: Would not lower electricity bills or help households and businesses manage increasing energy costs.
Option 3: The status of Budget Proposal 3570 shall be contingent upon the outcome of the statewide Property Tax Reform referendum scheduled for November 3, 2026. If the referendum passes, the City will not proceed with the proposed reduction to the current 10% Electric Public Service Tax. If the referendum ...
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