A second reading will be July 23 on an ordinance to put a referendum on the November ballot amending the North Port City Charter.
If approved it would allow the commission to issue debt to respond to emergencies or pay for safety and public health projects.
If passed by voters, it would allow the commission to issue debt to respond to emergencies or pay for safety and public health projects.
North Port is believed to be the only city out of 411 in Florida whose charter prohibits the borrowing of money or incurring any debt without voter approval.
Every other Florida city and county routinely relies on borrowing — in the form of bonds, loans, leases or other borrowing instruments — to pay for growth and infrastructure needs and keep their community going. In North Port, these projects could include roads and bridges, water control structures or water/wastewater services.
The charter amendment would allow the City to issue debt payable from funds other than property taxes without voter approval in response to declared emergencies or for safety and public health projects of $15 million or less per project.
The proposed charter change will only apply to revenue bonds that are paid back by dedicated revenue funds, not property taxes. Any borrowing or incurrence of debt would need to be approved by a majority of the City Commission in at least two public hearings.
General obligation bonds — those paid back using property taxes — would still need to be approved by voter referendum in a general election on an individual basis. General obligation bonds are typically used to pay for large-scale infrastructure projects, such as a police headquarters or water and sewer treatment plants.
Commissioners have also directed staff to develop a robust debt management policy that will ensure responsible and affordable use of debt financing for the City's capital needs. The debt management policy is tentatively scheduled for discussion during the Sept. 9, Commission Workshop.
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