Two Ordinances Approved in North Port Meeting: A Step Towards Fiscal Flexibility
By Staff Report | Sarasota Herald-Tribune
North Port, Florida, has taken a significant step towards enhancing its financial management and infrastructure development. During a City Commission meeting on October 8—rescheduled due to Hurricane Milton—officials unanimously approved two critical ordinances. These ordinances are designed to inform voters on potential changes regarding how the city may borrow money for essential projects not funded by property taxes.
What Are the New Ordinances?
The first ordinance establishes a comprehensive debt management policy, setting clear guidelines for the city’s borrowing practices. The second ordinance creates a five-member Debt Management Advisory Committee, composed of local residents with relevant expertise in capital projects, finance, or government operations. Together, these measures aim to empower North Port voters to make informed decisions concerning financial matters that affect the community.
The second reading of these ordinances is set for a special meeting on November 4 at 9 a.m., allowing for further public input and participation.
The Upcoming Referendum: What’s It Asking?
A pivotal aspect of the discussion is the upcoming referendum scheduled for the November 5 ballot. This referendum will seek voter approval to amend the city charter, allowing the City Commission to issue debt in response to emergencies or for funding safety and public health projects.
State law mandates that ballot language be concise—limited to a mere 75 words. However, the newly established debt policy will provide a comprehensive framework outlining how the city can strategically leverage debt for necessary infrastructure development and emergency repairs.
Access to Debt Management Policy
Residents curious about the specifics of the new debt management policy can find the current draft available online. Accessible at NorthPortFL.gov/Referendum, the document serves as a robust resource, offering detailed information about the city’s charter and its infrastructure needs, along with answers to frequently asked questions. The proposed policy has been modeled after successful frameworks utilized by other municipalities and incorporates best practices from the Government Finance Officers Association, as well as input from the city’s independent financial advisor.
Why Change Is Necessary
North Port stands distinct among its Florida peers, being the only city out of 411 that currently prohibits borrowing money or incurring debt without direct voter approval. This limitation can hinder timely responses to growth and infrastructure demands, as neighboring cities and counties routinely rely on various forms of borrowing—be it bonds, loans, or other financing strategies—to support their growth and maintain essential services.
The proposed amendment to the charter would enable North Port to issue debt for urgent projects without needing to seek voter approval for amounts up to $15 million. This change not only facilitates quick responses to emergencies—like securing low-interest loans post-Hurricane Ian—but also streamlines the funding process for safety and public health projects.
What Bonds Will Be Exempted?
It’s crucial to note that while the charter amendment seeks to enhance borrowing flexibility, it will only apply to revenue bonds, which are backed by specific dedicated revenue funds rather than property taxes. Any debt incurred will still require approval from a majority of the City Commission, and will be subject to thorough public hearings. Importantly, general obligation bonds—those that are repaid using property taxes—will continue to necessitate voter approval through a referendum during general elections. Such bonds are typically used for large-scale infrastructure initiatives, such as constructing a new police headquarters.
Conclusion
The recent actions by the North Port City Commission reflect a proactive approach to urban management and financial strategy. As the city gears up for the November 5 referendum, residents will have the opportunity to shape the fiscal landscape of their community by supporting changes that promise greater flexibility in managing growth and infrastructure needs. Stakeholders look forward to engaging discussions, well-informed decisions, and a collaborative future that prioritizes the safety and well-being of North Port’s residents.
