TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: Discussion and Possible Direction Regarding Pre-Payment Plan Options for the Water and Wastewater Expansion Project
Recommended Action
Provide direction regarding pre-payment options for the Water and Wastewater Expansion Project.
Background Information
On December 14, 2021, Commission directed staff to bring back ordinance changes to revise the water line fee, add a wastewater line fee, add a hardship deferral program and to explore pre-payment options. Commission has approved the water line fee, wastewater line fee and the hardship deferral program. This agenda item is regarding the pre-payment options for the Water and Wastewater Expansion Project. Staff submitted a legal request which confirmed the following:
* Offering a pre-payment plan would not impact the City's bond covenants so long as the pre-payment option is available to all customers of the same class and the City continues to meet the rate in the bond covenants.
* The pre-payment plan does not constitute a deposit, so the administrative rule regarding collection of a deposit for service does not apply.
* Florida laws require specific findings and information to be implemented via Ordinance due to use of public funds regarding cost savings programs related to Capacity Fees, which this would be.
* Because this is a reservation of capacity, monthly guaranteed revenues would begin upon first payment.
Two options are being recommended by staff, one for existing homeowners and one for unimproved vacant land and both include a one-time payment option or a payment over time option. Staff is seeking direction on which options should be included in an Ordinance to be brought back for approval.
Strategic Plan
Environmental Resiliency & Sustainability
Infrastructure & Facilities Integrity
Good Governance
Financial Impact
Not applicable.
Procurement
Not applicable.
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