The current Police Department headquarters on City Hall Boulevard was built in 2006. At the time, NPPD had a staff of 109 serving a City population of approximately 47,000. Today, the Police Department has 206 positions serving a population of more than 90,000. The department has outgrown its current headquarters in all capacities. North Port’s rapid residential and commercial growth is expected to continue. The city’s land area of 104 square miles is only about 30 percent built out, and steady population is anticipated to continue in the coming decades, eventually reaching 250,000 residents.
The proposed new headquarters, which would be located on City-owned land on North Toledo Blade Boulevard, was recommended by a professional firm that analyzed current and future staffing needs, growth projections and industry standards for the number of officers and staff needed to safely protect a community. The recommended building accounts for the future growth of the city and police force through 2065. Watch the presentation(PDF, 11MB) from the consultant and staff to the City Commission on Feb. 26, 2024.
If the bonds are approved by voters, the average North Port homeowner with an assessed property value of $246,400 would see an initial property tax increase of approximately $121.38 - about $10 a month or 33 cents a day. The cost may go down over time as it is spread out among residents and new businesses moving to North Port.
Financing options
City staff and our independent financial consultant have done a cost comparison of different financing models:
- General Obligation (GO) Bonds: The City can self-finance the project using GO Bonds, leveraging its strong “AA” rating to secure lower interest rates.
- Public-Private Partnership (P3): A private sector funding option incorporating lease payments over a 30-year term.
- Certificate of Participation (COP): A tax-exempt lease-financing mechanism in which investors purchase fractional ownership in lease payments rather than a bond.
GO Bond financing (as proposed with this referendum) offers an estimated effective interest rate of 4.00% - 4.50%, whereas private financing would be higher at 6.00% - 6.50% due to required equity returns and asset management fees. The estimated annual savings with GO Bond financing is between $1.3 million - $1.8 million over 30 years.
A P3 lease structure would result in approximately $1.8 million in additional annual payments, with total costs exceeding $50 million more over the 30-year period.
COPs carry higher interest rates than a standard GO bond issuance due to the added risk, and the spread varies based on the market’s view of governance risk, the type of project and the measure of its essential purpose. It is reasonable to expect the effective interest rate to fall between the cost of a GO deal and a P3 financing, but several factors will determine how the market prices the additional risks.
Learn more about these financing options:
Financing-Alternatives-Memo-Final.pdf(PDF, 192KB)
PFM-North-Port-Police-HQ-Cost-Comparison.pptx(PPTX, 487KB)