HomeMy WebLinkAboutResolution 2026-34241RESOLUTION NO. 2026-34241
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA AUTHORIZING ISSUANCE OF NOT TO EXCEED
$160,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI
BEACH, FLORIDA RESORT TAX REVENUE REFUNDING BONDS, SERIES
2026, FOR THE PURPOSE OF REFUNDING ALL OR A PORTION OF THE
OUTSTANDING SERIES 2015 BONDS, AND PAYING COSTS OF ISSUANCE
AND REFUNDING, PURSUANT TO SECTION 304(H) OF RESOLUTION NO.
2015-29175 ADOPTED BY THE COMMISSION ON OCTOBER 14, 2015;
PROVIDING THAT SAID SERIES 2026 BONDS AND INTEREST THEREON
SHALL BE PAYABLE SOLELY FROM PLEDGED FUNDS; PROVIDING
CERTAIN DETAILS OF THE SERIES 2026 BONDS; DELEGATING OTHER
DETAILS AND MATTERS IN CONNECTION WITH THE ISSUANCE OF THE
SERIES 2026 BONDS AND THE REFUNDING OF THE SERIES 2015 BONDS
TO BE REFUNDED TO THE CITY MANAGER, INCLUDING WHETHER TO
SECURE A CREDIT FACILITY, WITHIN THE LIMITATIONS AND
RESTRICTIONS STATED HEREIN; AUTHORIZING A BOOK -ENTRY
REGISTRATION SYSTEM FOR THE SERIES 2026 BONDS; AUTHORIZING
THE NEGOTIATED SALE AND AWARD OF THE SERIES 2026 BONDS TO THE
UNDERWRITERS WITHIN THE LIMITATIONS AND RESTRICTIONS STATED
HEREIN; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION
AND DELIVERY OF A BOND PURCHASE AGREEMENT; APPROVING THE
FORM OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT
AND AN OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND
DELIVERY OF THE OFFICIAL STATEMENT; PROVIDING FOR THE
APPLICATION OF THE PROCEEDS OF THE SERIES 2026 BONDS AND
CREATING CERTAIN FUNDS AND SUBACCOUNTS; AUTHORIZING THE
REFUNDING AND REDEMPTION OF THE SERIES 2015 BONDS TO BE
REFUNDED; COVENANTING TO PROVIDE CONTINUING DISCLOSURE IN
CONNECTION WITH THE SERIES 2026 BONDS IN ACCORDANCE WITH
SECURITIES AND EXCHANGE COMMISSION RULE 15c2-12 AND
AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING
DISCLOSURE AGREEMENT WITH RESPECT THERETO AND APPOINTING A
DISCLOSURE DISSEMINATION AGENT; APPOINTING A PAYING AGENT
AND REGISTRAR FOR THE SERIES 2026 BONDS; AUTHORIZING OFFICERS
AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE SERIES 2026 BONDS AND THE
REFUNDING OF THE SERIES 2015 BONDS TO BE REFUNDED AND OTHER
RELATED MATTERS; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach, Florida (the "City") has heretofore issued its
$194,920,000 aggregate principal amount of City of Miami Beach, Florida Resort Tax Revenue
Bonds, Series 2015, of which $156,545,000 are currently Outstanding (as defined in the Original
Resolution described below) (the "Outstanding Series 2015 Bonds"), pursuant to Resolution
No. 2015-29175, adopted by the Mayor and City Commission of the City (the "Commission") on
October 14, 2015 (the "Original Resolution" and as amended and supplemented from time to time,
the "Bond Resolution"), for the purposes set forth in the Original Resolution; and
WHEREAS, the City has determined that as a result of the current low interest rate
environment it is financially beneficial to authorize the refunding of all or a portion of the
Outstanding Series 2015 Bonds, as shall be determined by the City Manager (as defined in the
Original Resolution) in accordance with the provisions of this resolution (the "Series 2026 Series
Resolution") (the Outstanding Series 2015 Bonds so determined to be refunded are referred to
herein as the "Series 2015 Bonds to be Refunded"); and
WHEREAS, Section 304(H) of the Original Resolution provides for the issuance of
Additional Bonds, which Additional Bonds may be issued as refunding Bonds for the purpose of
refunding Bonds Outstanding under the Bond Resolution, upon meeting the conditions contained
in said Section 304(H) (as all such terms are defined in the Original Resolution); and
WHEREAS, the City has determined that it is desirable to issue refunding Bonds (the
"Series 2026 Bonds") pursuant to the provisions of Section 304(H) of the Original Resolution and
this Series 2026 Series Resolution for the purpose of providing funds, together with any other
available funds, to refund the Series 2015 Bonds to be Refunded and pay the costs of such
issuance and refunding; and
WHEREAS, the Commission has determined that it is in the best interest of the City to
delegate to the City Manager, who shall rely upon the recommendations of the Chief Financial
Officer (hereinafter defined) and PFM Financial Advisors LLC, the City's financial advisor (the
"Financial Advisor"), the determination of various terms of the Series 2026 Bonds and their sale,
the determination of the Outstanding Series 2015 Bonds which will constitute the Series 2015
Bonds to be Refunded, the determination of which Series 2015 Bonds to be Refunded will be
redeemed prior to maturity, whether to secure a Credit Facility with respect to the Series 2026
Bonds, and other actions in connection with the issuance of the Series 2026 Bonds and the
refunding of the Series 2015 Bonds to be Refunded, all as provided and subject to the limitations
contained herein; and
WHEREAS, the City has determined that due to the amount of time that has elapsed since
the issuance of the Series 2015 Bonds to be Refunded, the character of, and security for, the
Series 2026 Bonds and the ability to target a broader investor base, as more particularly described
in the recommendations of the Financial Advisor, it is in the best interest of the City to authorize
the negotiated sale of the Series 2026 Bonds; and
WHEREAS, the Commission has found and determined that the issuance of the Series
2026 Bonds and the refunding of the Series 2015 Bonds to be Refunded will serve a valid public
purpose;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. The above recitals are incorporated herein as findings. This Series 2026
Series Resolution supplements the Original Resolution. All terms used in capitalized form herein
and not defined shall have the meanings set forth in the Bond Resolution.
SECTION 2. Additional Bonds of the City are authorized to be issued pursuant to Section
304(H) of the Original Resolution and the authority granted to the City by the Act. The Series
2026 Bonds shall be issued in an aggregate principal amount not to exceed $160,000,000, shall
be designated "City of Miami Beach, Florida Resort Tax Revenue Refunding Bonds, Series 2026",
and shall be issued for the purpose of providing funds, together with any other available funds, to
refund the Series 2015 Bonds to be Refunded and pay the costs of such issuance and refunding.
The Series 2026 Bonds will not be secured by the Debt Service Reserve Account.
The Series 2026 Bonds shall be issued in fully registered form, shall be in the
denominations of $5,000 or any integral multiple thereof, shall be issued in such aggregate
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principal amount, shall be dated and issued at such time, shall be in the form of Serial Bonds
and/or Term Bonds, shall have such Interest Payment Dates, shall bear interest at such rates,
but not to exceed the maximum rate permitted by law, shall be stated to mature, but not later than
September 1, 2045, as to any Term Bonds, shall have Amortization Requirements payable in
such amounts and on such dates, and shall be subject to redemption prior to maturity, all as shall
be determined by the City Manager, after consultation with the Chief Financial Officer and the
Financial Advisor, and specified in a certificate of the Mayor dated on or prior to the date of initial
issuance of the Series 2026 Bonds (the "Series 2026 Mayor's Certificate"). Term Bonds, if any,
will be callable at par with accrued interest, without premium, each year in amounts equal to the
respective Amortization Requirements therefor.
If the City Manager determines, in reliance upon the recommendations of the Chief
Financial Officer and the Financial Advisor, that there is an economic benefit to the City to secure
and pay for a Credit Facility with respect to all or a portion of the Series 2026 Bonds, the City
Manager is authorized to secure a Credit Facility with respect to all or a portion of the Series 2026
Bonds. The City Manager is authorized to provide for the payment of any premiums for such
Credit Facility from the proceeds of the Series 2026 Bonds. The Mayor is authorized, after
consultation with the City Attorney, to enter into, execute and deliver such agreements as may be
necessary to secure such Credit Facility, the execution and delivery by the Mayor of any such
agreements for and on behalf of the City to be conclusive evidence of the City's approval of
securing such Credit Facility and of such agreements. Any agreements with any providers of
such Credit Facility shall supplement and be in addition to the provisions of the Bond Resolution.
The Series 2026 Bonds shall be payable, with respect to interest, principal and redemption
premium, if any, in any coin or currency of the United States of America that is legal tender at the
time of such payment. The principal of and redemption premium, if any, on the Series 2026 Bonds
shall be payable upon presentation and surrender at the designated office of the Paying Agent.
The Series 2026 Bonds shall bear interest from their date as set forth therein, with interest on the
Series 2026 Bonds being paid by check or draft drawn upon the Paying Agent and mailed to the
registered owners of the Series 2026 Bonds on each Interest Payment Date at the addresses of
such registered owners as they appear on the registration books maintained by the Registrar at
the close of business on the 15th day (whether or not a business day) of the calendar month next
preceding the Interest Payment Date (the "Regular Record Date"), irrespective of any transfer or
exchange of such Series 2026 Bonds subsequent to such Regular Record Date and prior to such
Interest Payment Date, unless the City shall be in default in payment of interest due on such
Interest Payment Date; provided, however, that (i) if ownership of Series 2026 Bonds is
maintained in a book -entry only system by a securities depository, such payment may be made
by automatic funds transfer to the securities depository or its nominee or (ii) if such Series 2026
Bonds are not maintained in a book -entry only system by a securities depository, upon written
request of the holder of $1,000,000 or more in principal amount of Series 2026 Bonds, such
payments may be made by wire transfer to the bank and bank account specified in writing by such
holder (such bank being a bank within the continental United States), if such holder has advanced
to the Paying Agent the amount necessary to pay the cost of such wire transfer or authorized the
Paying Agent to deduct the cost of such wire transfer from the payment due to such holder. In
the event of any default in the payment of interest, such defaulted interest shall be payable to the
persons in whose names such Series 2026 Bonds are registered at the close of business on a
special record date for the payment of such defaulted interest as established in accordance with
the Original Resolution. Interest on the Series 2026 Bonds shall be calculated on the basis of a
360 day year consisting of twelve 30-day months.
SECTION 3. In accordance with the provisions of the Bond Resolution, the Series 2026
Bonds shall be limited obligations of the City payable solely from the Pledged Funds which are
pledged to the payment thereof in the manner, to the extent and with the priority of application
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provided in the Bond Resolution, and nothing shall be construed as obligating the City to pay the
principal, interest and premium, if any, thereon except from the Pledged Funds or as pledging the
full faith and credit of the City or as obligating the City, directly or indirectly or contingently, to levy
or pledge any form of taxation whatever therefor.
SECTION 4. It is hereby found and determined that due to the character of the Series
2026 Bonds, prevailing market conditions, the uncertainty inherent in a competitive bidding
process and the recommendations of the Financial Advisor, the negotiated sale of the Series 2026
Bonds is in the best interest of the City. The negotiated sale of the Series 2026 Bonds to Morgan
Stanley & Co. LLC (the "Senior Managing Underwriter") on behalf of itself and Jefferies LLC and
Stifel, Nicolaus & Company, Incorporated (collectively with the Senior Managing Underwriter, the
"Underwriters") is hereby authorized at a purchase price (not including original issue premium or
original issue discount) of not less than 98% of the aggregate principal amount of the Series 2026
Bonds (the "Minimum Purchase Price") and at a true interest cost rate ("TIC") which will result in
total present value debt service savings on the Series 2015 Bonds to be Refunded of not less
than 3.00% (the "Minimum PVS"). The City Manager, after consultation with the Chief Financial
Officer and the Financial Advisor, is hereby authorized to award the Series 2026 Bonds to the
Underwriters at a purchase price of not less than the Minimum Purchase Price and at a TIC which
results in total present value debt service savings on the Series 2015 Bonds to be Refunded of
not less than the Minimum PVS. The execution and delivery of the Series 2026 Bond Purchase
Agreement (as hereinafter defined) for and on behalf of the City by the Mayor shall be conclusive
evidence of the City's acceptance of the Underwriters' proposal to purchase the Series 2026
Bonds.
SECTION 5. Upon compliance with the requirements of Section 218.385, Florida
Statutes, as amended, by the Underwriters, the Mayor is hereby authorized to execute and deliver
a Bond Purchase Agreement for the Series 2026 Bonds (the "Series 2026 Bond Purchase
Agreement") for and on behalf of the City, in substantially the form presented at the meeting at
which this Series 2026 Series Resolution was considered, subject to such changes, modifications,
insertions and omissions and such filling -in of blanks therein as may be determined and approved
by the City Manager, after consultation with the Chief Financial Officer, the City Attorney and the
Financial Advisor. The execution of the Series 2026 Bond Purchase Agreement for and on behalf
of the City by the Mayor shall be conclusive evidence of the City's approval of the Series 2026
Bond Purchase Agreement.
SECTION 6. The Series 2026 Bonds shall be executed in the form, including such
changes as may be necessary to reflect the terms of the Series 2026 Bonds, and in the manner
provided in the Bond Resolution. The Registrar is hereby authorized and directed to authenticate
the Series 2026 Bonds and to deliver the Series 2026 Bonds to or upon the order of the
Underwriters upon payment of the purchase price, as shall be set forth in the Series 2026 Bond
Purchase Agreement, and satisfaction of the conditions contained in Section 304(H) of the
Original Resolution.
SECTION 7. The proposed Preliminary Official Statement (the "Series 2026 Preliminary
Official Statement") and Official Statement (the "Series 2026 Official Statement") in connection
with the issuance of the Series 2026 Bonds are hereby approved in substantially the form of the
Series 2026 Preliminary Official Statement presented at the meeting at which this Series 2026
Series Resolution was considered, subject to such changes, modifications, insertions and
omissions and such filling -in of blanks therein as may be determined and approved by the City
Manager, after consultation with the Chief Financial Officer and the City Attorney. The execution
of the Series 2026 Official Statement, for and on behalf of the City by the Mayor and the City
Manager, shall be conclusive evidence of the City's approval of the Series 2026 Preliminary
Official Statement and the Series 2026 Official Statement. The distribution of said Series 2026
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Preliminary Official Statement and Series 2026 Official Statement in connection with the
marketing of the Series 2026 Bonds and the execution and delivery of the Series 2026 Official
Statement by the Mayor and the City Manager are hereby authorized. The Mayor or his designee,
after consultation with the Chief Financial Officer and the City Attorney, is hereby authorized to
make any necessary certifications to the Underwriters regarding a near final or deemed final
Series 2026 Preliminary Official Statement or Series 2026 Official Statement, if and to the extent
required by Rule 15c2-12 of the United States Securities and Exchange Commission (the "Rule").
SECTION 8. The proceeds of the Series 2026 Bonds and, to the extent determined by
the Chief Financial Officer, amounts on deposit in the Sinking Fund Account allocable to the
Series 2015 Bonds to be Refunded and other available moneys of the City, if any, shall be applied
in accordance with Sections 303(b) and 304(H) of the Original Resolution all as specified in a
certificate of the Chief Financial Officer determined concurrently with the issuance of the Series
2026 Bonds.
With respect to the Series 2026 Bonds, there is hereby created a separate account
designated as the "Series 2026 Cost of Issuance Account" for the deposit of proceeds of the
Series 2026 Bonds and any other available moneys of the City to be applied to the payment of
the costs of issuance and refunding.
SECTION 9. The Series 2026 Bonds are hereby authorized to be issued initially in book -
entry form and registered in the name of The Depository Trust Company ("DTC"), or its nominee
which will act as securities depository for the Series 2026 Bonds. The City Manager is hereby
authorized and directed to execute any necessary letters of representations with DTC and,
notwithstanding the provisions of the Bond Resolution, to do all other things, comply with all
requirements and execute all other such documents as are incidental to such book -entry system.
In the event a book -entry system for the Series 2026 Bonds ceases to be in effect, the Series
2026 Bonds shall be issued in fully registered form without coupons.
SECTION 10. The refunding and redemption of the Series 2015 Bonds to be Refunded,
including, but not limited to, the giving notice thereof, is hereby authorized and approved. The
City Manager, after consultation with the Chief Financial Officer and the Financial Advisor, is
hereby authorized to determine (i) the Outstanding Series 2015 Bonds which will constitute the
Series 2015 Bonds to be Refunded, (ii) the Series 2015 Bonds to be Refunded which will be
redeemed prior to maturity, and (iii) the date of redemption of the Series 2015 Bonds to be
Refunded, all as shall be set forth in the Series 2026 Mayor's Certificate.
SECTION 11. For the benefit of the holders and beneficial owners from time to time of the
Series 2026 Bonds, the City agrees, in accordance with and as the only obligated person with
respect to the Series 2026 Bonds under the Rule, to provide or cause to be provided certain
financial information and operating data, financial statements and notices, in such manner, as
may be required for purposes of paragraph (b)(5) of the Rule. In order to describe and specify
certain terms of the City's continuing disclosure agreement, including provisions for enforcement,
amendment and termination, the Chief Financial Officer is hereby authorized and directed to enter
into, execute and deliver, in the name and on behalf of the City, a Disclosure Dissemination Agent
Agreement (the "Series 2026 Continuing Disclosure Agreement") with Digital Assurance
Certification LLC, which is hereby appointed as disclosure dissemination agent with respect to
the Series 2026 Bonds, in substantially the form presented at the meeting at which this Series
2026 Series Resolution was considered, subject to such changes, modifications, insertions,
omissions and such filling -in of blanks therein as may be determined and approved by the Chief
Financial Officer, after consultation with the City Attorney. The execution of the Series 2026
Continuing Disclosure Agreement, for and on behalf of the City by the Chief Financial Officer,
shall be deemed conclusive evidence of the City's approval of the Series 2026 Continuing
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Disclosure Agreement. Notwithstanding any other provisions of the Bond Resolution, including
this Series 2026 Series Resolution, any failure by the City to comply with any provisions of the
Series 2026 Continuing Disclosure Agreement shall not constitute a default under the Bond
Resolution and the remedies therefor shall be solely as provided in the Series 2026 Continuing
Disclosure Agreement.
The Chief Financial Officer is further authorized and directed to establish, or cause to be
established, procedures in order to ensure compliance by the City with the Series 2026 Continuing
Disclosure Agreement, including the timely provision of information and notices. Prior to making
any filing in accordance with such agreement, the Chief Financial Officer may consult with, as
appropriate, the City Attorney or the City's bond counsel or disclosure counsel. The Chief
Financial Officer, acting in the name and on behalf of the City, shall be entitled to rely upon any
legal advice provided by the City Attorney or the City's bond counsel or disclosure counsel in
determining whether a filing should be made.
SECTION 12. The appointment of U.S. Bank Trust Company, National Association, as
Paying Agent and Registrar for the Series 2026 Bonds is hereby confirmed.
SECTION 13. The officers, agents and employees of the City, the Paying Agent and the
Registrar are hereby authorized and directed to do all acts and things required of them by the
provisions of the Series 2026 Bonds, the Bond Resolution, the Series 2026 Bond Purchase
Agreement, the Series 2026 Continuing Disclosure Agreement and this Series 2026 Series
Resolution, for the full, punctual and complete performance of all the terms, covenants, provisions
and agreements of the Series 2026 Bonds, the Bond Resolution, the Series 2026 Bond Purchase
Agreement, the Series 2026 Continuing Disclosure Agreement and this Series 2026 Series
Resolution.
SECTION 14. Nothing in this Series 2026 Series Resolution expressed or implied is
intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than
the City, the Paying Agent, the Registrar and the registered owners of the Series 2026 Bonds, any
right, remedy or claim under or by reason of this or any covenant, condition or stipulation hereof, and
all covenants, stipulations, promises and agreements in this Series 2026 Series Resolution
contained shall be for the sole and exclusive benefit of the City, the Paying Agent, the Registrar and
the registered owners of the Series 2026 Bonds, as applicable.
SECTION 15. This Series 2026 Series Resolution shall take effect immediately upon its
adoption.
PASSED AND ADOPTED this ,Z2 day of gpril 2026.
ATTEST:
,--A APR 2 8 2026
Rafael E. Granado, City Clerk
Steven Meiner, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
-ffD- *-J(oLzv-4,
Attorney Date
n
Resolutions - R7 R
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: April 22, 2026
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING ISSUANCE OF NOT TO EXCEED
$160,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF MIAMI BEACH,
FLORIDA RESORT TAX REVENUE REFUNDING BONDS, SERIES 2026, FOR
THE PURPOSE OF REFUNDING ALL OR A PORTION OF THE OUTSTANDING
SERIES 2015 BONDS, AND PAYING COSTS OF ISSUANCE AND REFUNDING.
PURSUANT TO SECTION 304(H) OF RESOLUTION NO. 2015-29175 ADOPTED
BY THE COMMISSION ON OCTOBER 14, 2015; PROVIDING THAT SAID SERIES
2026 BONDS AND INTEREST THEREON SHALL BE PAYABLE SOLELY FROM
PLEDGED FUNDS; PROVIDING CERTAIN DETAILS OF THE SERIES 2026
BONDS; DELEGATING OTHER DETAILS AND MATTERS IN CONNECTION WITH
THE ISSUANCE OF THE SERIES 2026 BONDS AND THE REFUNDING OF THE
SERIES 2015 BONDS TO BE REFUNDED TO THE CITY MANAGER, INCLUDING
WHETHER TO SECURE A CREDIT FACILITY, WITHIN THE LIMITATIONS AND
RESTRICTIONS STATED HEREIN; AUTHORIZING A BOOK -ENTRY
REGISTRATION SYSTEM FOR THE SERIES 2026 BONDS: AUTHORIZING THE
NEGOTIATED SALE AND AWARD OF THE SERIES 2026 BONDS TO THE
UNDERWRITERS WITHIN THE LIMITATIONS AND RESTRICTIONS STATED
HEREIN; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION
AND DELIVERY OF A BOND PURCHASE AGREEMENT; APPROVING THE FORM
OF AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN
OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION AND DELIVERY
OF THE OFFICIAL STATEMENT; PROVIDING FOR THE APPLICATION OF THE
PROCEEDS OF THE SERIES 2026 BONDS AND CREATING CERTAIN FUNDS
AND SUBACCOUNTS; AUTHORIZING THE REFUNDING AND REDEMPTION OF
THE SERIES 2015 BONDS TO BE REFUNDED; COVENANTING TO PROVIDE
CONTINUING DISCLOSURE IN CONNECTION WITH THE SERIES 2026 BONDS
IN ACCORDANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE
15C2-12 AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
CONTINUING DISCLOSURE AGREEMENT WITH RESPECT THERETO AND
APPOINTING A DISCLOSURE DISSEMINATION AGENT, APPOINTING A PAYING
AGENT AND REGISTRAR FOR THE SERIES 2026 BONDS: AUTHORIZING
OFFICERS AND EMPLOYEES OF THE CITY TO TAKE ALL NECESSARY
ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE SERIES 2026 BONDS
AND THE REFUNDING OF THE SERIES 2015 BONDS TO BE REFUNDED AND
OTHER RELATED MATTERS; AND PROVIDING FOR AN EFFECTIVE DATE.
RECOMMENDATION
Approve the resolution (the "Series Resolution") to allow for the issuance by the City of Miami
Beach, Florida (the "City") of its Resort Tax Revenue Refunding Bonds, Series 2026 ("Series 2026
Refunding Bonds") in an amount not to exceed $160,000,000. Capitalized terms used herein and
not otherwise defined herein shall have the meanings ascribed thereto in the Series Resolution.
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BACKGROUND/HISTORY
City staff including its Chief Financial Officer, in conjunction with the City's Financial Advisor, PFM
Financial Advisors LLC (the "Financial Advisor"), has identified a refinancing opportunity to
achieve debt service savings. A debt refunding opportunity is a chance to replace existing debt
obligations with new ones that offer cost savings and improved financial conditions for the City.
On December 17, 2025, the City Commission of the City approved a referral to the Finance and
Economic Resiliency Committee ("FERC") to review the potential refunding of the City's
outstanding Resort Tax Revenue Bonds, Series 2015.
The City's Chief Financial Officer and Financial Advisor presented the opportunity, which was
discussed by the FERC on February 20, 2026, and the FERC recommended that Administration
move forward with the refunding. At the March 18, 2026 Commission meeting, the City
Commission approved the selection of the underwriters for the Series 2026 Refunding Bonds.
ANALYSIS
On December 15, 2015, the City issued its $194,920,000 principal amount of Resort Tax Revenue
Bonds, Series 2015 (the "Series 2015 Bonds") for the purpose of providing funds to finance a
portion of the costs of acquiring and constructing renovations to the Convention Center and
related improvements and pay the costs of issuing the Series 2015 Bonds. The Series 2015
Bonds are solely payable from and secured by a pledge of and first lien on the Pledged Funds
derived by the City from Resort Tax Revenues and all moneys, securities and instruments held in
the funds and accounts created under the Bond Resolution. The Series 2015 Bonds were issued
with interest rates of 3.00% to 5.00% payable semiannually on March 1 and September 1.
As of the end of FY 2025, the amount of outstanding Series 2015 Bonds is $156,545,000. A debt
refunding opportunity is a chance to replace existing debt obligations with new ones that offer
cost savings and improved financial conditions for the City.
The City may be able to achieve savings through a tax-exempt refunding. The net present value
savings is estimated at $13.3 million, which would be 8.53% of Series 2015 Bonds to be refunded.
The total gross savings over 20 years would be approximately $18.6 million. The final maturity of
the Series 2026 Refunding Bonds will not be later than 2045, which is the final maturity of the
outstanding Series 2015 Bonds.
The foregoing information is summarized in the table below:
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Series Refunded:
Par Amount of Bonds Refunded
Net Present Value Savings ($):
Net Present Value Savings
Average Annual Gross Savings:
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2015
156,545,000
13,341,903
8.53%
930,599
236,839
969,350
964,500
967,250
968,750
969,000
968,000
965,750
967,250
967,250
965,750
967,750
968,000
966,500
968,250
968,000
969,000
964,600
965,050
965,150
Total $ 18,611,989
Estimates based on current market conditions.
Due to the amount of time that has elapsed since the issuance of the Series 2015 Bonds, the
character of, and security for, the Series 2026 Refunding Bonds and the ability to target a broader
investor base, the recommendation of the Financial Advisor was that a negotiated sale of the
Series 2026 Refunding Bonds is in the best interest of the City.
The Resolution for the issuance of the Series 2026 Refunding Bonds will delegate to the City
Manager, relying upon the recommendation of the Chief Financial Officer and the Financial
Advisor, certain matters, including the determination of various terms of the Series 2026
Refunding Bonds, and their sale and the refunding of the Series 2015 Bonds, and all other actions
necessary or desirable in connection with the issuance of the Series 2026 Refunding Bonds.
U.S. Bank Trust Company, National Association, is being appointed as Paying Agent and
Registrar for the Series 2026 Refunding Bonds.
The officers, agents and employees of the City, the Bond Registrar and DAC are hereby
authorized and directed to do all acts and things and execute and deliver all documents,
agreements and certificates required of them by the provisions of the Series 2026 Refunding
Bonds, the Bond Resolution, the Series 2026 Refunding Bond Purchase Agreement, the Series
2026 Continuing Disclosure Agreement and the Series Resolution, for the full, punctual and
complete performance of all the terms, covenants, provisions and agreements of the Series 2026
Refunding Bonds, the Bond Resolution, the Series 2026 Refunding Bond Purchase Agreement,
the Series 2026 Continuing Disclosure Agreement and the Series Resolution.
The underwriters selected by the City for the Series 2026 Refunding Bonds are as follows:
• Senior Manager: Morgan Stanley & Co. LLC
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Co -Managers: Jefferies LLC and Stifel, Nicolaus & Company, Inc.
The underwriters for the Series 2026 Refunding Bonds were also approved at the City
Commission meeting on March 18, 2026.
FISCAL IMPACT STATEMENT
The City may be able to achieve savings through a tax-exempt refunding. The net present value
savings is estimated at $13.3 million, which would be 8.53% of the Series 2015 Bonds to be
refunded. The total savings over 20 years would be approximately $18.6 million.
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https•//www miamibeachfl gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City approve the
Series Resolution to allow for the issuance of the City's not to exceed $160,000,000 Resort Tax
Revenue Refunding Bonds, Series 2026.
Applicable Area
Citywide
Is this a "Residents Right to Know" item,
pursuant to City Code Section 2-17?
(m
Is this item related to a G.O. Bond
Project?
W
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Finance
Sponsor(s)
Co-sponsor(s)
Condensed Title
1431 of 2461
Authorize Issuance of Resort Tax Revenue Refunding Bonds, Series 2026. FN
Previous Action (For City Clerk Use Only)
1432 of 2461
SEB DRAFT - 04/06/26
PRELIMINARY OFFICIAL STATEMENT DATED MAY _, 2026
NEW ISSUE - Book -Entry Only
Ratings: See "RATINGS" herein
In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law, (i) assuming
continuing compliance with certain covenants and the accuracy of certain representations, interest on the
Series 2026 Bonds is excluded from gross income for federal income tax purposes and is not an item of
tax preference for purposes of the federal alternative minimum tax imposed on individuals, and (ii) the
Series 2026 Bonds and the income thereon are exempt from taxation under the laws of the State of Florida,
except estate taxes imposed by Chapter 198, Florida Statutes, as amended, and net income and franchise
taxes imposed by Chapter 220, Florida Statutes, as amended. Interest on the Series 2026 Bonds may be
subject to certain federal taxes imposed only on certain corporations. For a more complete discussion oj'
the tax aspects relating to the Series 2026 Bonds, see "TAX MATTERS" herein.
�`: �' AM I B E AC H CITY OF MIAMI BEACH, FLORIDA DNv 8V)d
Resort Tax Revenue Refunding Bonds
Series 2026
Dated: Date of Delivery Due: September 1, as shown on inside cover page
The City of Miami Beach, Florida Resort Tax Revenue Refunding Bonds, Series 2026 (the "Series
2026 Bonds") will be issued by the City of Miami Beach, Florida (the "City") as fully registered bonds,
without coupons, in denominations of $5,000 or any integral multiple thereof. When issued, the Series
2026 Bonds will be registered in the name of Cede & Co., as nominee of The Depository Trust Company
("DTC"), which will act as securities depository for the Series 2026 Bonds. Purchasers will not receive
certificates representing their ownership interests in the Series 2026 Bonds purchased. See
"DESCRIPTION OF THE SERIES 2026 BONDS - Book -Entry Only System" herein. Interest on the
Series 2026 Bonds will accrue from their date of delivery and will be payable on September 1, 2026 and
semiannually on each March 1 and September 1 thereafter. U.S. Bank Trust Company, National
Association, Jacksonville, Florida, will serve as the initial registrar and paying agent (the "Paying Agent")
for the Series 2026 Bonds. While the Series 2026 Bonds are registered through the DTC book -entry only
system, principal of and interest on the Series 2026 Bonds will be payable by the Paying Agent to DTC.
The Series 2026 Bonds arc being issued for the purpose of providing funds, together with other
legally available moneys, to (i) refund all* of the City of Miami Beach, Florida Resort Tax Revenue Bonds,
Series 2015 (the "Series 2015 Bonds"), which are outstanding immediately prior to issuance of the Series
2026 Bonds in the aggregate principal amount of $156,545,000 (such Series 2015 to be refunded being
hereinafter referred to as the "Refunded Bonds"); and (ii) pay costs related to the issuance of the Series
2026 Bonds and the refunding of the Refunded Bonds. See "INTRODUCTION' and "PLAN OF
REFUNDING" herein.
The Series 2026 Bonds are solely payable from and secured by a pledge of and first lien on the
Pledged Funds derived by the City from (i) Resort Tax Revenues; and (ii) all moneys, securities and
instruments held in the funds and accounts created under the Bond Resolution, except the Rebate Fund (as
such terms are hereinafter defined), on a parity with any additional Bonds that may be issued under the
Bond Resolution; provided, however, that no deposit to the Debt Service Reserve Account shall be
made in connection with the issuance of the Series 2026 Bonds and the Series 2026 Bonds shall not
be secured by, or entitled to any benefit from, amounts, Reserve Account Insurance Policies or
1433 of 2461
Reserve Account Letters of Credit that may be held in the Debt Service Reserve Account or any
subaccount therein for the benefit of other Bonds that may be hereafter issued and Outstanding
under the Original Resolution (as such terms are defined herein). [Upon issuance of the Series 2026
Bonds, there will be no other Bonds Outstanding under the Original Resolution] See "INTRODUCTION"
and "SECURITY AND SOURCES OF PAYMENT" herein.
The Series 2026 Bonds are subject to optional and mandatory sinking fund redemption prior to
maturity as described in this Official Statement. See "DESCRIPTION OF THE SERIES 2026 BONDS -
Redemption Provisions" herein.
THE SERIES 2026 BONDS SHALL NOT BE AND SHALL NOT BE DEEMED TO
CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE CITY, MIAMI-COUNTY, FLORIDA
("THE COUNTY"), THE STATE OF FLORIDA (THE "STATE") OR ANY POLITICAL SUBDIVISION
THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL, STATUTORY OR CHARTER
PROVISIONS OR LIMITATIONS, OR A PLEDGE OF THE FAITH AND CREDIT OF THE CITY, THE
COUNTY, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF, BUT SHALL BE PAYABLE
SOLELY FROM THE PLEDGED FUNDS. NO HOLDER OR HOLDERS OF ANY SERIES 2026
BONDS SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE AD VALOREM
TAXING POWER OF THE CITY, THE COUNTY, THE STATE OR ANY POLITICAL SUBDIVISION
THEREOF, OR TAXATION IN ANY FORM OF ANY REAL OR PERSONAL PROPERTY THEREIN,
OR THE APPLICATION OF ANY FUNDS OF THE CITY, THE COUNTY, THE STATE OR ANY
POLITICAL SUBDMSION THEREOF TO PAY THE SERIES 2026 BONDS OR THE INTEREST
THEREON OR THE MAKING OF ANY SINKING FUND OR RESERVE PAYMENTS PROVIDED
FOR IN THE BOND RESOLUTION, OTHER THAN THE PLEDGED FUNDS. THE SERIES 2026
BONDS AND THE OBLIGATIONS EVIDENCED THEREBY SHALL NOT CONSTITUTE A LIEN
UPON ANY PROPERTY OF OR IN THE CITY, BUT SHALL CONSTITUTE A LIEN ONLY ON THE
PLEDGED FUNDS, TO THE EXTENT, IN THE MANNER, AND WITH THE PRIORITY OF
APPLICATION PROVIDED IN THE BOND RESOLUTION.
Based on market conditions in existence at the time of pricing, the City will determine
whether or not to purchase insurance on all of the Series 2026 Bonds, some of the Series 2026 Bonds
or none of the Series 2026 Bonds. In the event the City deems it in its best interest to insure all or
a portion of the Series 2026 Bonds, the scheduled payment of the principal of and interest on such
insured Series 2026 Bonds when due will be guaranteed under a municipal bond insurance policy to
be issued concurrently with the delivery of the insured Series 2026 Bonds by
See "BOND INSURANCE OPTION" herein.
(Insert Insurer Logo]
This cover page contains certain information for quick reference only. It is not a summarN
of this issue. Investors must read the entire Official Statement, including the Appendices, to obtain
information essential to the making of an informed investment decision.
The Series 2026 Bonds are offered when, as and ij' issued by the City, subject to the opinion on
certain legal matters relating to their issuance of Squire Patton Boggs (US) LLP, Miami, Florida, Bond
Counsel. Certain legal matters will be passed upon for the City by Ricardo J. Dopico, Esquire, Miami
Beach, Florida, City Attorney, and certain legal matters relating to disclosure will be passed upon for the
City by the Law Offices of Steve E. Bullock, P.A., Miami, Florida, Disclosure Counsel. Certain legal
matters will be passed upon for the Underwriters by Bryant Miller Olive P.A., Miami, Florida, as Counsel
to the Underwriters. PFM Financial Advisors LLC, Coral Gables, Florida, is serving as Financial Advisor
1434 of 2461
to the City in connection with the issuance of the Series 2026 Bonds. It is expected that the Series 2026
Bonds will he available for delivery through DTC on or about June 2026.
Morgan Stanley
Jefferies Stifel, Nicolaus & Company, Incorporated
Dated: May_, 2026
* Preliminary, subject to change.
Red herring: This Preliminaryv Official Statement and the information contained herein are subject to
amendment and completion without notice. The Series 2026 Bonds ma►• not be sold and offers to bui• mai
not be accepted prior to the time the Official Statement is delivered in final.form. Under no circumstances
shall this Preliminary Official Statement constitute an gjfer to .cell or the solicitation of an offer to buv, nor
shall there he am sale of the Series 2026 Bonds in any jurisdiction in which such offer, solicitation or sale
would be unlawfid prior to registration or qualification under the securities laws of am• such jurisdiction.
1435 of 2461
MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES,
PRICES, YIELDS AND INITIAL CUSIP NUMBERS*t
$ Series 2026 Serial Bonds
Due Principal
Interest Initial
(September 1) Amount
Rate Price Yield CUSIP Number
2027 $
% % 593238
2028
593238
2029
593238
2030
593238
2031
593238
2032
593238
2033
593238
2034
593238
2035
593238
2036
593238
2037
593238
2038
593238
2039
593238
2040
593238
2041
593238
2042
593238
2043
593238
2044
593238
2045
593238
$ Series 2026 Term Bonds
$ % Series 2026 Term Bond Due September 1, 20 — Price: / Yield: %
Initial CUSIP Number: 593238
$ % Series 2026 Term Bond Due September 1, 20 — Price: / Yield: %
Initial CUSIP Number: 593238
* Preliminary, subject to change.
t CUSIPGX is a registered trademark of the American Bankers Association. CUSIP numbers have been assigned
by an independent company not affiliated with the City or the Underwriters and are included solely for the
convenience of the holders of the Series 2026 Bonds. Neither the City nor the Underwriters is responsible for
the selection or uses of the CUSIP numbers assigned to the Series 2026 Bonds, and no representation is made
as to their correctness on the Series 2026 Bonds or as indicated above. The CUSIP number for a specific
maturity is subject to change after issuance of the Series 2026 Bonds as a result of various subsequent actions
including, but not limited to, a refunding in whole or in part of the Series 2026 Bonds.
1436 of 2461
CITY OF MIAMI BEACH, FLORIDA
City Manager
Eric T. Carpenter, P.E.
Chief Financial Officer
Jason D. Greene, CGFO, CFE,
CPFIM
MAYOR
Steven Meiner, Esquire
VICE MAYOR
Laura Dominguez
CITY COMMISSION
Monica Matteo-Salinas, Commissioner
Alex J. Fernandez, Commissioner
Tanya K. Bhatt, Commissioner
David Suarez, Commissioner
Joseph Magazine, Commissioner
ADMINISTRATION
Assistant City Manager
Maria Hernandez
CONSULTANTS
Bond Counsel
Squire Patton Boggs (US) LLP
Miami, Florida
Disclosure Counsel
Law Offices of Steve E. Bullock, P.A.
Miami, Florida
City Attorney
Ricardo J. Dopico, Esquire
City Clerk
Rafael E. Granado, Esquire
Financial Advisor
PFM Financial Advisors LLC
Coral Gables, Florida
Independent Auditor
RSM US LLP
Miami, Florida
1437 of 2461
No dealer, broker, salesman or other person has been authorized by the City or the Underwriters
to make any representations, other than those contained in this Official Statement, in connection with the
offering contained herein, and if given or made, such other information or representations must not be
relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute
an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 2026 Bonds
by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation
or sale. The information contained in this Official Statement has been obtained from public documents,
records and other sources considered to be reliable and, while not guaranteed as to completeness or
accuracy, is believed to be correct. Any statements in this Official Statement involving estimates,
assumptions or opinions, whether or not so expressly stated, are intended as such and are not to be
construed as representations of fact, and the Underwriters and the City expressly make no representation
that such estimates, assumptions or opinions will be realized or fulfilled. Any information, estimates,
assumptions or matters of opinion contained in this Official Statement are subject to change without notice,
and neither the delivery of this Official Statement, nor any sale hereunder, shall, under any circumstances,
create any implication that there has been no change in the affairs of the City since the date hereof.
The Underwriters have provided the following sentence for inclusion in this Official Statement.
The Underwriters have reviewed the information in this Official Statement in accordance with, and as part
of, their responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of
such information.
The order and placement of materials in this Official Statement, including the Appendices, are not
to be deemed a determination of relevance, materiality or importance, and this Official Statement, including
the Appendices, must be considered in its entirety. The captions and headings in this Official Statement
are for convenience only and in no way define, limit or describe the scope or intent, or affect the meaning
or construction, of any provisions or sections in this Official Statement. The offering of the Series 2026
Bonds is made only by means of this entire Official Statement.
References to website addresses presented in this Official Statement are for informational purposes
only and may be in the form of a hyperlink solely for the reader's convenience. Unless specified
otherwise, such websites and the information or links contained therein are not incorporated into, and are
not part of this Official Statement.
Certain statements included or incorporated by reference in this Official Statement constitute
"forward -looking statements." Such statements generally are identifiable by the terminology used, such
as "plan," "expect," "estimate," "project," "forecast," "budget" or other similar words. The achievement
of certain results or other expectations contained in such forward -looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results, performance or achievements
described to be materially different from any future results, performance or achievements expressed or
implied by such forward -looking statements. The City does not plan to issue any updates or revisions to
those forward -looking statements if or when its expectations or events, conditions or circumstances on
which such statements are based occur.
THE SERIES 2026 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, NOR HAS THE BOND RESOLUTION
BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE
UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE EXEMPTION OF THE SERIES 2026
BONDS FROM REGISTRATION OR QUALIFICATION IN CERTAIN STATES CANNOT BE
REGARDED AS A RECOMMENDATION THEREOF. IN MAKING AN INVESTMENT DECISION,
1438 of 2461
INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE CITY AND THE TERMS OF
THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR ANY OTHER FEDERAL, STATE OR GOVERNMENTAL
ENTITY OR AGENCY WILL HAVE PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
OFFICIAL STATEMENT OR APPROVED OR RECOMMENDED THE SERIES 2026 BONDS FOR
SALE. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
THE UNDERWRITERS MAY OFFER AND SELL THE SERIES 2026 BONDS TO CERTAIN
DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED
ON THE INSIDE COVER PAGE OF THIS OFFICIAL STATEMENT, AND SUCH PUBLIC OFFERING
PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS.
THIS OFFICIAL STATEMENT SHALL NOT CONSTITUTE A CONTRACT BETWEEN THE
CITY OR THE UNDERWRITERS AND ANY ONE OR MORE HOLDERS OF THE SERIES 2026
BONDS.
THIS OFFICIAL STATEMENT IS BEING PROVIDED TO PROSPECTIVE PURCHASERS
EITHER IN BOUND PRINTED FORM ("ORIGINAL BOUND FORMAT") OR IN ELECTRONIC
FORMAT ON THE WEBSITES: WWW.MUNIOS.COM AND WWW.EMMA.MSRB.ORG. THIS
OFFICIAL STATEMENT MAY BE RELIED UPON ONLY IF IT IS IN ITS ORIGINAL BOUND
FORMAT OR IF IT IS PRINTED IN FULL DIRECTLY FROM EITHER OF SUCH WEBSITES.
(" " or the "Insurer") makes no representation regarding the Series
2026 Bonds or the advisability of investing in the Series 2026 Bonds. In addition, has not
independently verified, makes no representation regarding, and does not accept any responsibility for the
accuracy or completeness of this Official Statement or any information or disclosure contained herein, or
omitted herefrom, other than with respect to the accuracy of the information regarding ,
supplied by and presented under the heading `BOND INSURANCE OPTION' and "APPENDIX G -
Specimen Municipal Bond Insurance Policy."
THIS PRELIMINARY OFFICIAL STATEMENT IS IN A FORM DEEMED FINAL BY THE
CITY FOR PURPOSES OF RULE 15C2-12 UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED, EXCEPT FOR CERTAIN INFORMATION PERMITTED TO BE OMITTED
PURSUANT TO RULE 15C2-12(B)(1).
1439 of 2461
TABLE OF CONTENTS
Page
INTRODUCTION...................................................................
1
PLANOF REFUNDING.............................................................
3
ESTIMATED SOURCES AND USES OF FUNDS .........................................
4
DESCRIPTION OF THE SERIES 2026 BONDS ..........................................
4
General.........................................................................
4
Redemption Provisions.............................................................
5
Book -Entry Only System............................................................
7
Discontinuance of Book -Entry Only System .............................................
9
SECURITY AND SOURCES OF PAYMENT ............................................
10
PledgedFunds....................................................................
10
Flowof Funds....................................................................
11
Debt Service Reserve Account.......................................................
14
AdditionalBonds.................................................................
15
Other Obligations Secured by Pledged Funds ............................................
16
Limited Obligations..............................................................
.
16
Modifications or Supplements to Bond Resolution ........................................
16
BOND INSURANCE OPTION........................................................
17
Bond Insurance Policy .................................................
I.............
17
TheInsurer......................................................................
17
BOND INSURANCE RISK FACTORS ..................................................
18
DEBT SERVICE SCHEDULE.........................................................
19
THERESORT TAX.................................................................
19
General.........................................................................
19
Paymentof Resort Tax.............................................................
20
Penalties for Nonpayment...........................................................
21
Liens for Nonpayment..............................................................
22
Exemptions from Resort Tax .........................................................
22
Miami Beach Visitor and Convention Authority ..........................................
23
Summary Statement of Revenues and Expenditures .......................................
23
Historical and Projected Debt Service Coverage ..........................................
26
Recent Developments..............................................................
27
Future Developments..............................................................
28
INVESTMENT CONSIDERATIONS...................................................
28
General.........................................................................
28
Infectious Disease Outbreak.........................................................
29
ClimateChange...................................................................
29
Cybersecurity.....................................................................
32
RISKFACTORS....................................................................
34
General.........................................................................
34
Limited Obligation of City ..........................................................
34
Resort Tax Financing..............................................................
35
THECITY.........................................................................
36
General.........................................................................
36
Organization.....................................................................
37
PENSION AND OTHER POST EMPLOYMENT BENEFITS ................................
38
Defined Benefit Plans..............................................................
38
Other Retirement and Compensation Plans ..............................................
47
1440 of 2461
Other Post Employment Benefits ..................................................... 49
TAXMATTERS.................................................................... 52
General......................................................................... 52
Risk of Future Legislative Changes and/or Court Decisions ................................. 53
Original Issue Discount and Original Issue Premium ...................................... 54
FINANCIAL STATEMENTS......................................................... 55
CONTINUING DISCLOSURE........................................................ 55
LITIGATION...................................................................... 56
LEGALMATTERS................................................................. 56
ENFORCEABILITY OF REMEDIES ................................................... 57
RATINGS......................................................................... 57
UNDERWRITING.................................................................. 57
FINANCIALADVISOR.............................................................. 58
CONTINGENTFEES................................................................ 59
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY LAWS .............................. 59
AUTHORIZATION CONCERNING OFFICIAL STATEMENT .............................. 59
MISCELLANEOUS................................................................. 59
APPENDICES
APPENDIX A - General Information and Economic Data Regarding the
City of Miami Beach, Florida and Miami -Dade County, Florida .............. A-1
APPENDIX B - Excerpts from Comprehensive Annual Financial Report of the City of
Miami Beach, Florida for the Fiscal Year Ended September 30, 2025.......... B-1
APPENDIX C - The Bond Resolution ............................................... C-1
APPENDIX D - Proposed Form of Opinion of Bond Counsel ............................. D-1
APPENDIX E - Proposed Form of Opinion of Disclosure Counsel ......................... E-1
APPENDIX F - Form of Disclosure Dissemination Agent Agreement ...................... F-1
APPENDIX G - Specimen Municipal Bond Insurance Policy ............................. G-1
I\
1441 of 2461
OFFICIAL STATEMENT
relating to
S
CITY OF MIANII BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds
Series 2026
INTRODUCTION
The purpose of this Official Statement, including the cover page and all appendices, is to set forth
certain information relating to the City of Miami Beach, Florida (the "City") and the sale by the City of
its $ * aggregate principal amount of Resort Tax Revenue Refunding Bonds, Series 2026
(the "Series 2026 Bonds"). The Series 2026 Bonds are being issued pursuant to the Constitution and Laws
of the State of Florida (the "State"), including Chapter 67-930, Laws of Florida, Acts of 1967, as amended,
Chapter 166, Florida Statutes, as amended, the City of Miami Beach Charter, as amended (the "City
Charter"), Chapter 102, Article IV of the Miami Beach City Code, as amended (the "City Code") and other
applicable provisions of law (collectively, the "Act"), and pursuant and subject to the terms and conditions
of Resolution No. 2015-29175 adopted by the Mayor and City Commission of the City (collectively, the
"City Commission") on October 14, 2015 (the "Original Resolution"), as supplemented by Resolution No.
2026- adopted by the City Commission on April _, 2026 (the "Series 2026 Resolution" and,
together with the Original Resolution, the "Bond Resolution"). For a complete description of the terms
and conditions of the Series 2026 Bonds and the provisions of the Bond Resolution, see "APPENDIX C -
The Bond Resolution."
On October 28, 2015 the City Commission enacted Ordinance No. 2015-3975 to amend Chapter
102, Article IV of the City Code. Enactment of Ordinance No. 2015-3975 facilitates the levy of an
additional one percent (1%) Resort Tax (as hereinafter described) on the transient rental of a room or rooms
in any hotel, motel, rooming house or apartment house within the City. Such additional one percent (1%)
Resort Tax, as set forth in Section 5.03 of the City Charter, was approved by the voters of the City in a
special election held on August 14, 2012. See "SECURITY AND SOURCES OF PAYMENT - Pledged
Funds" herein.
The Series 2026 Bonds will be issued in book -entry only form and purchasers of the Series 2026
Bonds will not receive certificates representing their ownership interests in the Series 2026 Bonds
purchased. The Series 2026 Bonds will contain such other terms and provisions, including provisions
regarding redemption, as described in "DESCRIPTION OF THE SERIES 2026 BONDS" herein.
To finance a portion of the costs of acquiring and constructing renovations to the Miami Beach
Convention Center (the "Convention Center") and related improvements, the City has heretofore issued the
City of Miami Beach, Florida Resort Tax Revenue Bonds, Series 2015 (the "Series 2015 Bonds") in the
aggregate principal amount of $194,920,000. The Series 2015 Bonds constituted the first Series of Bonds
issued under the Original Resolution. The Series 2015 Bonds are currently Outstanding in the aggregate
principal amount of $156,545,000.
* Preliminary, subject to change.
1442 of 2461
The Series 2026 Bonds are being issued for the purpose of providing funds, together with other
legally available moneys, to (i) refund all* of the outstanding Series 2015 Bonds (such Series 2015 to be
refunded being hereinafter referred to as the "Refunded Bonds"); and (ii) pay costs related to the issuance
of the Series 2026 Bonds and the refunding of the Refunded Bonds, including the premium for delivery
of the Policy (hereinafter defined), if applicable. See "PLAN OF REFUNDING" herein.
The Series 2026 Bonds are solely payable from and secured by a pledge of and first lien on the
Pledged Funds derived by the City from (i) Resort Tax Revenues (as described herein); and (ii) except for
moneys, securities and instruments in the Rebate Fund, all moneys, securities and instruments held in the
funds and accounts established under the Bond Resolution; provided, however, that no deposit to the
Debt Service Reserve Account shall be made in connection with the issuance of the Series 2026 Bonds
and the Series 2026 Bonds shall not be secured by, or entitled to any benefit from, amounts, Reserve
Account Insurance Policies or Reserve Account Letters of Credit that may be held in the Debt
Service Reserve Account or any subaccount therein for the benefit of other Bonds that may be
hereafter issued and Outstanding under the Original Resolution (as such terms are defined herein).
[Upon issuance of the Series 2026 Bonds, there will be no other Bonds Outstanding under the Original
Resolution.]
Additional Bonds may be issued, on a parity with the Series 2026 Bonds, upon satisfaction of the
conditions described in the Original Resolution. See "SECURITY AND SOURCES OF PAYMENT -
Additional Bonds" herein. The Series 2026 Bonds and any additional Bonds hereafter issued are
collectively referred to herein as the "Bonds."
The Series 2026 Bonds shall not be and shall not be deemed to constitute a debt, liability or
obligation of the City, Miami -Dade County, Florida (the "County"), the State or any political subdivision
thereof within the meaning of any constitutional, statutory or charter provisions or limitations, or a pledge
of the faith and credit of the City, the County, the State or any political subdivision thereof but shall be
payable solely from the Pledged Funds, and the obligations evidenced thereby shall not constitute a lien
upon any property of or in the City, but shall constitute a lien only on the Pledged Funds, all in the manner
provided in the Bond Resolution. See "SECURITY AND SOURCES OF PAYMENT - Limited
Obligations" herein.
Based on market conditions in existence at the time of pricing, the City will determine whether or
not to purchase insurance on all of the Series 2026 Bonds, some of the Series 2026 Bonds or none of the
Series 2026 Bonds. In the event the City deems it in its best interest to insure all or a portion of the Series
2026 Bonds, the scheduled payment of the principal of and interest on such insured Series 2026 Bonds
when due will be guaranteed under a municipal bond insurance policy (the "Policy") to be issued
concurrently with the delivery of the Series 2026 Bonds by (" " or the "Insurer"). See "BOND
INSURANCE OPTION" and `BOND INSURANCE RISK FACTORS" herein.
This introduction is intended to serve as a brief description of this Official Statement and is
expressly qualified by reference to this Official Statement as a whole. A full review should be made of
this entire Official Statement, as well as the documents and reports summarized or described herein. The
description of the Series 2026 Bonds, the documents authorizing and securing the same, including, without
limitation, the Bond Resolution, and the information from various reports contained herein are not
comprehensive or definitive. All references herein to such documents and reports are qualified by the
entire, actual content of such documents and reports. Copies of such documents and reports may be
obtained from the City by contacting the City's Chief Financial Officer, 1700 Convention Center Drive,
* Preliminary, subject to change.
1443 of 2461
Miami Beach, Florida 33139, Telephone number: (305) 673-7466, Facsimile number: (305) 673-7795,
Email address: www.miamibeachfl.gov/fmance.
Capitalized terms used but not defined in this Official Statement shall have the meanings ascribed
to such terms in the Bond Resolution. See "APPENDIX C - The Bond Resolution."
PLAN OF REFUNDING
The proceeds of the Series 2026 Bonds will be used, together with certain other legally available
moneys of the City, to (i) provide for the current refunding of the Refunded Bonds; and (ii) pay costs of
issuance of the Series 2026 Bonds and the refunding of the Refunded Bonds, including the premium for
delivery of the Policy, if applicable (see "ESTIMATED SOURCES AND USES OF FUNDS" herein). The
Refunded Bonds shall be redeemed on the date of issuance of the Series 2026 Bonds at a price equal to
one hundred percent (100%) of the principal amount of the Refunded Bonds, without premium, plus any
unpaid interest that shall be due on the Refunded Bonds on their redemption date.
The Refunded Bonds consist of the following:
Series 2015 Bonds To Be Refunded
Maturity
Principal
Maturity
Principal
(September 11
Amount
(September 1)
Amount
2026
$4,825,000
2033
$ 6,660,000
2027
5,070,000
2034
6,995,000
2028
5,220,000
2035
7,345,000
2029
5,480,000
20401
42,615,000
2030
5,755,000
2045`)
10,000,000
2031
6,045,000
2045,31
44,190,000
2032
6,345,000
(1) Term Bond.
(2) Term Bond bearing interest at the rate of 4.00% per annum_
(3) Term Bond bearing interest at the rate of 5.00% per annum.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
I
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ESTIMATED SOURCES AND USES OF FUNDS
The following table sets forth the estimated sources and uses of funds in connection with the
issuance of the Series 2026 Bonds:
Sources of Funds
Par Amount of Series 2026 Bonds $
Net Original Issue Discount/Premium
Other Legally Available Moneys"'
Total Estimated Sources of Funds $
Uses of Funds
Deposit to Redeem Refunded Bon&" $
Cost of Issuance"'
Underwriters' Discount
Total Estimated Uses of Funds $
(1) Constitutes amount held under the Original Resolution to pay principal of and interest due on the Refunded
Bonds.
(2) See "PLAN OF REFUNDING" herein.
(3) To pay certain costs of issuance of the Series 2026 Bonds, including, without limitation, printing costs, bond
counsel fees, disclosure counsel fees, fees of the financial advisor and rating agencies, the premium paid to
the Insurer for issuance of the Policy, if applicable, and miscellaneous costs of issuance.
DESCRIPTION OF THE SERIES 2026 BONDS
General
The Series 2026 Bonds will be dated their date of delivery. The Series 2026 Bonds will bear
interest at the rates and will mature on the dates and in the amounts set forth on the inside cover page of
this Official Statement. Interest on the Series 2026 Bonds is payable semiannually commencing on
September 1, 2026 and on each March 1 and September 1 thereafter. Such interest shall be calculated on
the basis of a 360 day year consisting of twelve 30-day months. The City has appointed U.S. Bank Trust
Company, National Association, Jacksonville, Florida, to serve as the paying agent for the Series 2026
Bonds (the "Paying Agent") and as the registrar for the Series 2026 Bonds (the "Registrar").
In any case where the maturity date of, or the date for the payment of the principal of or interest
on the Series 2026 Bonds, or the date fixed for redemption of any Series 2026 Bonds shall be a Saturday,
Sunday or a day on which any Paying Agent is required, or authorized or not prohibited, by law (including
executive orders) to close and is closed, then payment of such interest or principal need not be paid by the
Paying Agent on such date but may be paid on the next succeeding business day on which the Paying
Agent is open for business with the same force and effect as if paid on the date of maturity or date fixed
for redemption, and no interest shall accrue for the period after such date of maturity or date fixed for
redemption.
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1445 of 2461
The Series 2026 Bonds will be issued as fully registered bonds, without coupons, in denominations
of $5,000 or any integral multiple thereof, and when issued, will be registered in the name of Cede & Co.,
as registered owner and nominee of The Depository Trust Company ("DTC"). Purchases of beneficial
interests in the Series 2026 Bonds will be made in book -entry only form, without certificates. Unless a
securities depository other than DTC is selected by the City, so long as the Series 2026 Bonds shall be in
book -entry only form, the principal of and interest on the Series 2026 Bonds will be payable to Cede &
Co. (or such other nominee selected by DTC), as registered owner thereof, and will be distributed by DTC
and the DTC Participants to the Beneficial Owners (as such terms are hereinafter defined). See "THE
SERIES 2026 BONDS — Book -Entry Only System" herein.
Redemption Provisions
Optional Redemption
The Series 2026 Bonds maturing on or before September 1, 2036 are not subject to redemption
prior to maturity. The Series 2026 Bonds maturing on or after September 1, 2037 are subject to
redemption prior to maturity, at the option of the City, on or after September 1, 2036, in whole or in part
at any time, in any order of maturity selected by the City and by lot or by such other manner as the
Registrar shall deem appropriate within a maturity, at a redemption price equal to one hundred percent
(100%) of the principal amount of the Series 2026 Bonds to be redeemed, together with accrued interest
to the date fixed for redemption and without premium.
Mandatory Sinking Fund Redemption (t)
The Series 2026 Bonds maturing on September 1, 20 are subject to mandatory sinking fund
redemption prior to maturity, in part, by lot or by such other manner as the Registrar shall deem
appropriate, through the application of Amortization Requirements, at a redemption price equal to one
hundred percent (100%) of the principal amount thereof, on September 1 of each year in the following
amounts and in the years specified:
Due Amortization
(September 1) Requirement
* Final maturity.
The Series 2026 Bonds maturing on September 1, 20 are subject to mandatory sinking fund
redemption prior to maturity, in part, by lot or by such other manner as the Registrar shall deem
appropriate, through the application of Amortization Requirements, at a redemption price equal to one
hundred percent (100%) of the principal amount thereof, on September 1 of each year in the following
amounts and in the years specified:
(t) Preliminary, subject to change.
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Due Amortization
(September 1) Requirement
* Final maturity.
Moneys in the Bond Redemption Account shall be used solely for the purchase or redemption of
the Term Bonds payable therefrom at such times as the same are subject to mandatory redemption or
payment. However, the City may at any time use money held in the Bond Redemption Account for the
payment of Amortization Requirements to purchase any Series 2026 Bonds that are Term Bonds at prices
not greater than the then redemption price of said Term Bonds. If the Term Bonds are not then
redeemable, the City may purchase said Term Bonds at prices not greater than the redemption price of such
Term Bonds on the next ensuing redemption date. If, by the application of moneys in the Bond
Redemption Account, the City shall purchase or call for redemption in any year Term Bonds in excess of
the Amortization Requirements for such year, such excess of Term Bonds so purchased or redeemed shall
be credited in such manner and at such times as the Chief Financial Officer shall determine over the
remaining payment dates.
Notice of Redemption
Mailing of Notice of Redemption. At least thirty (30) days, but not more than sixty (60) days,
before the redemption date, a notice of redemption, signed by the Chief Financial Officer, shall be (a) filed
by the City with the Registrar and (b) mailed by the Registrar, first class mail, postage prepaid, to all
registered owners of Series 2026 Bonds (which, so long as DTC shall act as securities depository for the
Series 2026 Bonds, shall be Cede & Co.) to be redeemed at their addresses as they appear on the
registration books of the Registrar. Failure so to mail any such notice to any registered owner shall not
affect the validity of the proceedings for such redemption.
Each such notice shall specify the redemption date and the place or places where amounts due upon
such redemption will be payable and, if less than all of the Series 2026 Bonds are to be redeemed, the
numbers or other distinguishing marks of such Series 2026 Bonds to be redeemed in part and the respective
portions thereof to be redeemed. Subject to the next succeeding paragraph, such notice shall further state
that on such date there shall become due and payable upon each of the Series 2026 Bonds to be redeemed
the redemption price or the specified portions thereof in the case of Series 2026 Bonds to be redeemed in
part only, together with interest accrued to the redemption date, and that from and after such date interest
thereon shall cease to accrue and be payable on such Series 2026 Bonds or portions thereof so redeemed.
In the case of an optional redemption of the Series 2026 Bonds, the redemption notice may state
that (a) it is conditioned upon the deposit of moneys with the Registrar or with a bank, trust company or
other appropriate fiduciary institution acting as escrow agent (the "escrow agent"), in amounts necessary
to effect the redemption, no later than the redemption date, or (b) the City retains the right to rescind such
notice on or prior to the scheduled redemption date (in either case, a "Conditional Redemption"), and such
notice and optional redemption shall be of no effect if such moneys are not so deposited or if the notice
is rescinded as described in this paragraph. Any such notice of Conditional Redemption shall be captioned
"Conditional Notice of Redemption." Any Conditional Redemption may be rescinded at any time prior
to the redemption date if the City delivers a written direction to the Registrar directing the Registrar to
rescind the redemption notice. The Registrar shall give prompt notice of such rescission to the affected
Bondholders. Any Series 2026 Bonds subject to Conditional Redemption where redemption has been
1447 of 2461
rescinded shall remain Outstanding, and neither the rescission nor the failure by the City to make such
moneys available shall constitute an event of default under the Bond Resolution.
Effect of Calling for Redemption. Notice having been given in the manner and under the conditions
described above, and with respect to a Conditional Redemption, the Conditional Redemption not having
been rescinded, the Series 2026 Bonds or portions of Series 2026 Bonds so called for redemption shall,
on the redemption date designated in such notice, become and be due and payable at the redemption price
provided for redemption of such Series 2026 Bonds or portions of Series 2026 Bonds on such date,
together with interest accrued to the redemption date. On the date so designated for redemption, moneys
for payment of the redemption price being held in separate accounts by the Paying Agent in trust for the
registered owners of the Series 2026 Bonds or portions thereof to be redeemed, all as provided in the Bond
Resolution, interest on the Series 2026 Bonds or portions of Series 2026 Bonds so called for redemption
shall cease to accrue, such Series 2026 Bonds and portions of Series 2026 Bonds shall cease to be entitled
to any lien, benefit or security under the Bond Resolution and shall be deemed paid thereunder, and the
registered owners of such Series 2026 Bonds or portions of Series 2026 Bonds shall have no right in
respect thereof except to receive payment of the redemption price thereof and to receive Series 2026 Bonds
for any unredeemed portions of the Series 2026 Bonds, together with interest accrued to the redemption
date.
Book -Entry Only System
The following description of the procedures and record keeping with respect to beneficial
ownership interests in the Series 2026 Bonds, payment of the principal of and interest on the Series 2026
Bonds to DTC Participants or Beneficial Owners (as .such terms are hereinafter defined) of the Series 2026
Bonds, confirmation and transfer of beneficial ownership interests in the Series 2026 Bonds and other
related transactions by and between DTC, the DTC Participants and the Beneficial Owners of the Series
2026 Bonds is based solely on information furnished by DTC on its website for inclusion in this Official
Statement. Accordingly, neither the City nor the Underwriters can make any representation concerning
these matters or take any responsibility for the accuracy or completeness of such information.
DTC will act as securities depository for the Series 2026 Bonds. The Series 2026 Bonds will be
issued as fully -registered securities registered in the name of Cede & Co., as DTC's partnership nominee,
or such other name as may be requested by an authorized representative of DTC. One fully -registered
Series 2026 Bond certificate will be issued for each maturity of the Series 2026 Bonds, each in the
aggregate principal amount of such maturity, as set forth on the inside cover page of this Official
Statement, and will be deposited with DTC.
DTC, the world's largest securities depository, is a limited -purpose trust company organized under
the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law,
a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues
of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments
from over one hundred (100) countries that its participants ("Direct Participants") deposit with DTC. DTC
also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions
in deposited securities, through electronic computerized book -entry transfers and pledges between Direct
Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust
& Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing
Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC
is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others
`/
1448 of 2461
such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly
or indirectly ("Indirect Participants" and, together with Direct Participants, "DTC Participants"). DTC has
a S&P Global Ratings, a division of Standard & Poor's Financial Services LLC, rating of AA+. The DTC
rules applicable to the DTC Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
Purchases of Series 2026 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Series 2026 Bonds on DTC's records. The ownership
interest of each actual purchaser of each Series 2026 Bond (`Beneficial Owner") is in turn to be recorded
on the DTC Participants' records. Beneficial Owners will not receive written confirmation from DTC of
their purchase but Beneficial Owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the DTC Participant through which the
Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2026 Bonds
are to be accomplished by entries made on the books of DTC Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in Series
2026 Bonds, except in the event that use of the book -entry system for the Series 2026 Bonds is
discontinued.
To facilitate subsequent transfers, all Series 2026 Bonds deposited by Direct Participants with DTC
are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of Series 2026 Bonds with DTC and their
registration in the name of Cede & Co., or such other DTC nominee, will not effect any change in
beneficial ownership of the Series 2026 Bonds. DTC has no knowledge of the actual Beneficial Owners
of the Series 2026 Bonds; DTC's records reflect only the identity of the Direct Participants to whose
accounts such Series 2026 Bonds are credited, which may or may not be the Beneficial Owners. The DTC
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by DTC Participants to Beneficial Owners, will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from
time to time. Beneficial Owners of Series 2026 Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Series 2026 Bonds, such as
redemptions, defaults and proposed amendments to the documents securing the Series 2026 Bonds. For
example, Beneficial Owners of the Series 2026 Bonds may wish to ascertain that the nominee holding the
Series 2026 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request
that copies of notices are provided directly to them.
Redemption notices shall be sent by the Registrar to DTC. If less than all of the Series 2026 Bonds
within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of
each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Series 2026 Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under
its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose
accounts the Series 2026 Bonds are credited on the record date (identified in a listing attached to the
Omnibus Proxy).
1449 of 2461
Principal and interest payments on the Series 2026 Bonds will be made to Cede & Co., or to such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit
Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the
City or the Paying Agent on the payable date in accordance with their respective holdings shown on DTC's
records. Payments by DTC Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form
or registered in "street name," and will be the responsibility of such Participant and not of DTC, nor its
nominee, the Paying Agent or the City, subject to any statutory or regulatory requirements as may be in
effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may
be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent,
disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners shall be the responsibility of DTC Participants.
When reference is made to any action which is required or permitted to be taken by the Beneficial
Owners, such reference shall only relate to those permitted to act (by statute, regulation or otherwise) on
behalf of such Beneficial Owners for such purposes. When notices are given, they shall be sent by the City
only to DTC.
NEITHER THE CITY, THE PAYING AGENT NOR THE REGISTRAR WILL HAVE ANY
RESPONSIBILITY OR OBLIGATION TO ANY DTC PARTICIPANT OR THE PERSONS FOR
WHOM THEY ACT AS NOMINEES WITH RESPECT TO THE SERIES 2026 BONDS IN
RESPECT OF THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC
PARTICIPANT, THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OF ANY AMOUNT IN
RESPECT OF THE PRINCIPAL OF OR INTEREST ON THE SERIES 2026 BONDS, ANY
NOTICE WHICH IS PERMITTED OR REQUIRED TO BE GIVEN TO BONDHOLDERS UNDER
THE BOND RESOLUTION, THE SELECTION BY DTC OR ANY DTC PARTICIPANT OR ANY
PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION OF THE
SERIES 2026 BONDS, OR ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS
BONDHOLDER. SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES
2026 BONDS, AS NOMINEE OF DTC, REFERENCES IN THIS OFFICIAL STATEMENT TO
THE BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2026 BONDS SHALL
MEAN CEDE & CO., AND SHALL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES
2026 BONDS.
Discontinuance of Book -Entry Only System
In the event the City determines that it is in the best interest of the Beneficial Owners to obtain
Series 2026 Bond certificates, the City may notify DTC and the Registrar, whereupon DTC will notify the
DTC Participants, of the availability through DTC of Series 2026 Bond certificates. In such event, the City
shall prepare and execute, and the Registrar shall authenticate, transfer and exchange, Series 2026 Bond
certificates as requested by DTC in appropriate amounts and within the guidelines set forth in the Bond
Resolution. DTC may also determine to discontinue providing its services with respect to the Series 2026
Bonds at any time by giving written notice to the City and the Registrar and discharging its responsibilities
with respect thereto under applicable law. Under such circumstances (if there is no successor securities
depository), the City and the Registrar shall be obligated to deliver Series 2026 Bond certificates as
described herein.
In the event Series 2026 Bond certificates are issued, the provisions of the Bond Resolution shall
apply to, among other things, the transfer and exchange of such certificates and the method of payment of
principal of and interest on such certificates. Whenever DTC requests the City and the Registrar to do so,
1450 of 2461
the City will direct the Registrar to cooperate with DTC in taking appropriate action after reasonable notice
(i) to make available one or more separate certificates evidencing the Series 2026 Bonds to any DTC
Participant having Series 2026 Bonds credited to its DTC account; or (ii) to arrange for another securities
depository to maintain custody of certificates evidencing the Series 2026 Bonds.
SECURITY AND SOURCES OF PAYMENT
Pledged Funds
General
The payment of the principal of, redemption premium, if any, and interest on all Bonds are secured
equally and ratably by a first lien on and pledge of the Pledged Funds, which consist of (i) the Resort Tax
Revenues and (ii) except for moneys, securities and instruments in the Rebate Fund, all moneys, securities
and instruments held in the funds and accounts established under the Bond Resolution; provided, however,
that no deposit to the Debt Service Reserve Account shall be made in connection with the issuance
of the Series 2026 Bonds and the Series 2026 Bonds shall not be secured by, or entitled to any benefit
from, amounts, Reserve Account Insurance Policies or Reserve Account Letters of Credit that may
be held in the Debt Service Reserve Account or any subaccount therein for the benefit of other Bonds
that may be hereafter issued and Outstanding under the Original Resolution. [Upon issuance of the
Series 2026 Bonds, there will be no other Bonds Outstanding under the Original Resolution.]
"Resort Tax Revenues" means the proceeds of the Resort Tax. "Resort Tax" means the municipal
tax imposed, levied and collected by the City pursuant to the Act upon the rent of every occupancy of a
room or rooms in any hotel, motel, rooming house or apartment house in the City, and upon the total sales
price of all items of food, beverages, alcoholic beverages and wine sold at retail of any restaurant in the
City, as more particularly set forth in the Act. See "THE RESORT TAX" herein.
Resort Tax Levy and Collection
Subject to the limitations provided in the Act, the City Commission has the authority and power,
by ordinance, to determine and fix the amount of the Resort Tax, after public hearing, not in excess of two
percent (2%), except that an additional tax of up to two percent (2%) (hereinafter referred to as the
"Additional Tax") may be imposed, levied and collected on the rent of every occupancy of a room or
rooms in any hotel, motel, rooming house or apartment house in the City. After the initial imposition of
the Resort Tax in the amount of two percent (2%), pursuant to the authority provided in the Act, the City
Commission added an Additional Tax of one percent (1%) on the rent of every occupancy of a room or
rooms in any hotel, motel, rooming house or apartment house in the City. In addition, in connection with
the issuance of the Series 2015 Bonds, the City Commission enacted Ordinance No. 2015-3975 on October
28, 2015 to provide an Additional Tax of one percent (1 %) on transient rentals of living and sleeping
accommodations. Subject to the rights of holders of bonds, including the Series 2026 Bonds, the
Additional Tax of one percent (1%) that was added in connection with the issuance of the Series 2015
Bonds is required to be used solely for the purposes of expanding, enlarging, renovating, and/or improving
the Convention Center, including the payment of debt service on bonds related thereto, with any excess
from such Additional Tax being used, after providing for the payment of annual debt service and related
obligations, to establish and maintain a capital renewal and replacement fund for improving and
maintaining the Convention Center.
Authorization for the City Commission to impose the Additional Tax of one percent (1 %) for
Convention Center improvements and to establish a capital renewal and replacement fund for the
1451 of 2461
Convention Center was approved by the registered and qualified voters of the City in a special election held
on August 14, 2012. The Series 2015 Bonds were issued in December 2015 and the levy of the Additional
Tax of one percent (1 %) commenced in connection with such issuance.
Subject to the limitations provided in the Act, the City currently imposes, levies and collects a
Resort Tax of four percent (4%) on the rent of a room or rooms in any hotel, motel, rooming house or
apartment house in the City and two percent (2%) on the total sales price of all items of food, beverage,
alcoholic beverages or wine sold at retail of any restaurant in the City. With the imposition of the one
percent (1 %) Additional Tax for Convention Center improvements, the Resort Tax is being imposed by
the City in the maximum amount authorized under the Act. For more detailed information concerning the
imposition, levy and collection of the Resort Tax, see "THE RESORT TAX" herein.
The City covenants and agrees in the Original Resolution that as long as any of the principal of
or interest on any Series of Bonds is unpaid, or payment thereof not duly provided for, it will not repeal
the City Code provisions pursuant to which the Resort Tax is levied, will not reduce the rates of the Resort
Talc, or amend or modify the City Code provisions, in any manner so as to impair or adversely affect the
power and obligation of the City to levy and collect the Resort Tax, or impair or adversely affect in any
manner the pledge of the Pledged Funds made in the Original Resolution, or the rights of holders of Bonds.
Pursuant to the covenants of the Original Resolution, the City is unconditionally and irrevocably obligated,
as long as any of the Bonds, or the interest thereon, are Outstanding and unpaid, to levy and collect the
Resort Tax at not less than the rates being levied by the City on the date of issuance of the Series 2015
Bonds, to the full extent necessary to pay the principal of and interest on the Bonds and any other
payments provided in the Original Resolution.
Flow of Funds
Creation of Funds and Accounts
The Original Resolution created a special fund for the deposit of Resort Tax Revenues (the "Resort
Tax Fund"). The Original Resolution also created the "Resort Tax Sinking Fund" (the "Sinking Fund")
and established four (4) separate accounts therein for the benefit of the Holders of Bonds. The accounts
created in the Sinking Fund are the "Interest Account," the "Principal Account," the "Bond Redemption
Account" and the "Debt Service Reserve Account."
The Original Resolution also created the "Rebate Fund," which fund shall be maintained by the
City separate and apart from all other funds and accounts held by the City and which fund shall not be
subject to the lien of the Original Resolution in favor of Holders of Bonds. The City shall deposit Pledged
Funds into the Rebate Fund in the amounts required to be paid to the United States of America to satisfy
the arbitrage rebate covenants made by the City in connection with the issuance of Tax -Exempt Bonds.
In addition, the Original Resolution created a special fund designated the "Construction Fund" and
a special fund designated the "Cost of Issuance Fund." Separate accounts within the Construction Fund
and the Cost of Issuance Fund shall be created for the deposit of proceeds of each Series of Bonds and
other available moneys to fund projects being funded from proceeds of such Series of Bonds and other
available moneys (with respect to the Construction Fund) and to pay costs of issuance of such Series of
Bonds (with respect to the Cost of Issuance Fund). If for any reason moneys in the Construction Fund,
or any part thereof, including any investment earnings on deposit therein, are not necessary for, or are not
applied to the purposes provided for the applicable Series of Bonds, then such unapplied proceeds, upon
certification of a duly authorized official of the City that such surplus proceeds are not needed for such
purposes, shall be applied:
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(i) First, to the Debt Service Reserve Account, to the full extent necessary, to make
the amount then on deposit therein equal to the Reserve Account Requirement, as applicable, on
the Bonds then Outstanding; and
(ii) Second, the balance, if any, to the redemption, purchase or payment of principal
of Outstanding Bonds or for any other lawful purpose.
Each of the funds and accounts created in the Original Resolution shall be held and administered
by the City. Such funds and accounts shall constitute trust funds held solely for the purposes provided in
the Original Resolution and (except for the Rebate Fund) for the benefit of Bondholders.
Deposit and Use of Resort Tax Revenues
As soon as the same are received by the City, all Resort Tax Revenues shall be deposited into the
Resort Tax Fund. All Resort Tax Revenues at any time on deposit in the Resort Tax Fund shall be
disposed of only in the following manner:
(1) Resort Tax Revenues shall fast be used, to the full extent necessary, for deposit
into the Interest Account in the Sinking Fund on the fifteenth (15th) day of each month, beginning
with the fifteenth (15th) day of the first (1 st) full calendar month following the date on which any
or all of the Bonds are delivered to the purchaser thereof, of such sums as shall be sufficient to pay
one -sixth (1 /6th) of the interest becoming due on the Bonds on the next semi-annual Interest
Payment Date; provided, however, that such monthly deposits for interest shall not be required to
be made into the Interest Account to the extent that money on deposit therein is sufficient for such
purpose and, provided further, that in the event the City has issued additional parity Variable Rate
Bonds or entered into any Interest Rate Swaps pursuant to the provisions of the Bond Resolution,
Resort Tax Revenues shall be deposited at such other or additional times and amounts as necessary
to pay the interest becoming due on the Variable Rate Bonds on the next Interest Payment Date
or make the payments due under the Interest Rate Swaps on a parity with interest due on the
Bonds, all in the manner provided in the applicable supplemental resolution.
The City shall, on each Interest Payment Date, transfer to the Paying Agent
moneys in an amount equal to the interest due on such Interest Payment Date or shall advise the
Paying Agent of the amount of any deficiency in the amount so transferred so that the Paying
Agent may give appropriate notice required to provide for the payment of such deficiency from
any Reserve Account Insurance Policy or Reserve Account Letter of Credit on deposit in the Debt
Service Reserve Account.
In the event that the period to elapse between the date of the delivery of the Bonds
and the next semi-annual Interest Payment Date will be other than six (6) months, then such
monthly payments shall be adjusted to provide the required interest amount becoming due and
payable on the next Interest Payment Date.
(2) (a) Resort Tax Revenues shall next be used, to the full extent necessary, for
deposit in the Principal Account in the Sinking Fund, on the fifteenth (15th) day of each month
in each year, of one -sixth (1/6th) of the next maturing principal amount of Serial Bonds which will
mature and become due on such semi-annual maturity dates and one -twelfth (1/12th) of the next
maturing principal amount of Serial Bonds which will mature and become due on such annual
maturity dates, beginning on such dates as shall be determined by the City; provided, however, that
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such monthly deposits for principal shall not be required to be made into the Principal Account to
the extent that money on deposit therein is sufficient for such purpose.
The City shall, on the business day prior to each principal payment date, transfer
to the Paying Agent moneys in an amount equal to the principal due on such principal payment
date or shall advise the Paying Agent of the amount of any deficiency in the amount so transferred
so that the Paying Agent may give appropriate notice required to provide for the payment of such
deficiency from any Reserve Account Insurance Policy or Reserve Account Letter of Credit on
deposit in the Debt Service Reserve Account.
In the event the period to elapse between the date of delivery of the Bonds and the
next principal payment date will be other than six (6) months, in the case of Serial Bonds which
mature semi-annually, or twelve (12) months, in the case of Serial Bonds which mature annually,
then such monthly payments shall be increased or decreased, as appropriate, in sufficient amounts
to provide the required principal amount maturing on the next principal payment date. Any
monthly payment of Resort Tax Revenues to be deposited as set forth above for the purpose of
meeting payments of principal of the Bonds, shall be adjusted, as appropriate, to reflect the
frequency of principal payments applicable to such Series.
(b) Resort Tax Revenues shall next be used, to the full extent necessary, for
deposit into the Bond Redemption Account in the Sinking Fund on the fifteenth (15th) day of each
month in each year, beginning on such date, of such Amortization Requirements as may be
required for the payment of the Term Bonds payable from the Bond Redemption Account.
(3) Resort Tax Revenues shall next be used, to the full extent necessary, for deposit
into the Debt Service Reserve Account on the fifteenth (15th) day of each month in each year,
beginning with the fifteenth (15th) day of the first full calendar month following the date on which
any or all of the Bonds are delivered to the purchaser thereof, such sums as shall be at least
sufficient to pay an amount equal to one -sixtieth (1/60th) of the difference between the amount on
deposit in the Debt Service Reserve Account (including any Reserve Account Insurance Policy or
Reserve Account Letter of Credit) and the applicable Reserve Account Requirement for the Bonds
Outstanding; provided, however, that no payments shall be required to be made into the Debt
Service Reserve Account whenever and as long as the amount deposited therein (including any
Reserve Account Insurance Policy or Reserve Account Letter of Credit) shall be equal to the
applicable Reserve Account Requirement for the Bonds Outstanding.
(4) Resort Tax Revenues shall next be used for the payment of any subordinated
obligations issued by the City in accordance with the provisions for the issuance of such
obligations under the Bond Resolution, which subordinate obligations shall have such lien on the
Resort Tax Revenues as the City shall determine in the proceedings authorizing the issuance of
such subordinated obligations.
(5) Resort Tax Revenues shall next be used to make payments required under Interest
Rate Swap arrangements which are not payable from amounts deposited therefor into the Interest
Account.
(6) Thereafter, the balance of any Resort Tax Revenues remaining in the Resort Tax
Fund shall, subject to the requirement to make deposits into the Rebate Fund, be used by the City
for any lawful purposes; provided, however, that none of such Resort Tax Revenues shall ever be
used for the purposes provided in this paragraph (6) unless all payments required in paragraphs (1)
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through (5) above, including any deficiencies for prior payments and any amount due to the issuer
of any Reserve Account Insurance Policy or Reserve Account Letter of Credit, have been made
in full to the date of such use.
Notwithstanding anything in paragraphs (1) and (2) above to the contrary, failure to make the
scheduled payments specified therein shall not constitute a breach of the City's obligations under the Bond
Resolution so long as, on the date that any interest or principal payment is due on the Bonds, monies
sufficient to make such payment are on deposit in the Interest Account, Principal Account or Bond
Redemption Account, as the case may be. If the amounts deposited in any month pursuant to such
provisions shall be less than the amounts required, the requirement shall be cumulative and the amount of
the deficiency in any month shall be added to the amount otherwise required to be deposited in each month
thereafter until such time as all such deficiencies have been satisfied.
Notwithstanding the foregoing or any other provision in the Bond Resolution to the contrary, if
any amount applied to the payment of principal of and premium, if any, and interest on the Bonds that
would have been paid from an account in the Sinking Fund, is paid instead under a Credit Facility or a
Liquidity Facility, amounts deposited in such relevant account may be paid, to the extent required, to the
issuer of the Credit Facility or Liquidity Facility having therefore made said corresponding payment.
Debt Service Reserve Account
General
The Original Resolution established the Debt Service Reserve Account for the benefit of the Bonds
secured by such account and requires that funds be deposited therein, in the amounts and at the times
established in the Original Resolution, until the Reserve Account Requirement has been satisfied. See
"SECURITY AND SOURCES OF PAYMENT - Flow of Funds - Deposit and Use of Resort Tax
Revenues" herein. The Reserve Account Requirement under the Original Resolution is an amount equal
to the lesser of (i) the Maximum Annual Debt Service for all Outstanding Bonds in the current or any
subsequent Fiscal Year, or (ii) the maximum amount allowed to be funded from proceeds of Bonds under
the Code; provided that, if the Mayor's Certificate in the case of the Series 2015 Bonds or if the
supplemental resolution corresponding to any other Series of Bonds provides for the establishment of a
separate subaccount in the Debt Service Reserve Account to secure only the Series 2015 Bonds or such
other Series of Bonds (with such Series 2015 Bonds or other Series of Bonds having no claim on the other
moneys deposited to the credit of the Debt Service Reserve Account), the Reserve Account Requirement
for the Series 2015 Bonds or such other Series of Bonds shall be calculated as provided for in the Mayor's
Certificate or in the corresponding supplemental resolution; and provided further that, if the Mayor's
Certificate in the case of the Series 2015 Bonds or if the supplemental resolution corresponding to any
other Series of Bonds provides that the Series 2015 Bonds or such other Series of Bonds shall not be
secured by the Debt Service Reserve Account or any separate subaccount therein, the Reserve Account
Requirement shall be calculated without taking into account the Series 2015 Bonds or such other Series
of Bonds.
No Deposit for Series 2026 Bonds
No deposit was made to the Debt Service Reserve Account in connection with the issuance of the
Series 2015 Bonds and no separate subaccount in the Debt Service Reserve Account was created for the
benefit of the Series 2015 Bonds. In addition, the City has determined that the Series 2026 Bonds will not
be secured by the Debt Service Reserve Account. Therefore, no deposit will be made to the Debt Service
Reserve Account in connection with the issuance of the Series 2026 Bonds and no separate subaccount in
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the Debt Service Reserve Account has will be created for the benefit of the Series 2026 Bonds. As a
result, the Series 2026 Bonds shall not be secured by any separate subaccount in the Debt Service
Reserve Account nor entitled to any benefit from amounts, Reserve Account Insurance Policies or
Reserve Account Letters of Credit deposited in the Debt Service Reserve Account for the benefit of
any other Bonds that may be hereafter issued and Outstanding under the Original Resolution.
Additional Bonds
Pursuant to the Original Resolution, no additional Bonds, payable out of the Pledged Funds on a
parity with the Series 2026 Bonds, shall be issued unless certain conditions set forth in the Original
Resolution are met, including:
(i) the City must be current in all deposits and payments required under the Original
Resolution and the City must be currently in compliance with the covenants and provisions of the
Original Resolution and any supplemental resolution adopted for the issuance of additional parity
Bonds, unless upon the issuance of such additional parity Bonds the City will be in compliance
with all such covenants and provisions; and
(ii) the amount of the Resort Tax Revenues during the immediately preceding Fiscal
Year or any twelve (12) consecutive months selected by the City of the eighteen (18) months
immediately preceding the issuance of the additional parity Bonds, as certified by an independent
certified public accountant, were at least equal to one hundred fifty percent (150%) of the
Maximum Annual Debt Service on (x) the Bonds originally issued pursuant to the Original
Resolution and then Outstanding, (y) any additional parity Bonds theretofore issued and then
Outstanding, and (z) the additional parity Bonds then proposed to be issued.
The City need not comply with the requirement described in subparagraph (ii) above in the issuance
of additional parity Bonds if and to the extent the Bonds to be issued are refunding Bonds delivered in lieu
of or in substitution for Bonds originally issued under the Original Resolution or previously issued
additional parity Bonds, if the City shall cause to be delivered a certificate of the Chief Financial Officer
setting forth (1) the Maximum Annual Debt Service (a) with respect to the Bonds of all Series Outstanding
immediately prior to the date of authentication and delivery of such refunding Bonds, and (b) with respect
to the Bonds of all Series to be Outstanding immediately thereafter, and (2) that the Maximum Annual Debt
Service set forth pursuant to (b) above is no greater than that set forth pursuant to (a) above. The Series
2015 Bonds were the first Series of Bonds issued under the Original Resolution and the Series 2026 Bonds
are being issued as refunding Bonds that shall be delivered in accordance with the provisions set forth in
this paragraph. See "PLAN OF REFUNDING" herein.
The term "additional parity Bonds" shall be deemed to mean additional obligations evidenced by
Bonds issued under the provisions and within the limitations set forth in the Original Resolution, as
generally described herein, payable from the Pledged Funds on a parity with Bonds originally authorized
and issued pursuant to the Original Resolution. Such Bonds shall be deemed to have been issued pursuant
to the Original Resolution the same as the Bonds originally authorized and issued pursuant to the Original
Resolution and all of the covenants and other provisions of the Original Resolution (except as to details
of such Bonds evidencing such additional parity obligations inconsistent therewith) shall be for the equal
benefit, protection and security of the Holders of any Bonds originally authorized and issued pursuant to
the Original Resolution and the Holders of any Bonds evidencing additional obligations subsequently issued
within the limitations of and in compliance with the provisions herein describing the issuance of additional
parity Bonds. All of such Bonds, regardless of the time or times of their issuance, shall rank equally with
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respect to their lien on the Pledged Funds and their sources and security for payment therefrom, without
preference of any Bonds over any other Bonds.
The term "additional parity Bonds" shall not be deemed to include bonds, notes, certificates or
other obligations subsequently issued in accordance with the Original Resolution, the lien of which on the
Pledged Funds is subject to the prior and superior lien on the Pledged Funds of the Bonds.
Other Obligations Secured by Pledged Funds
Except upon the conditions and in the manner provided in the Original Resolution, the City will
not issue any other obligations payable from the Pledged Funds, nor voluntarily create or cause to be
created any debt, lien, pledge, assignment, encumbrance or any other charge having priority to or being
on a parity with the lien of the Bonds and the interest thereon, upon any of the Pledged Funds; provided,
however, that the City may enter into agreements with issuers of Credit Facilities and Liquidity Facilities
which involve liens on Resort Tax Revenues on a parity with that of the Series of Bonds or portion thereof
which is supported by such Credit Facilities or Liquidity Facilities and may enter into Interest Rate Swaps
which involve a lien on the Resort Tax Revenues on a parity with the lien of the Bonds. Any other
obligations, in addition to the Bonds and obligations to issuers of Credit Facilities and Liquidity Facilities,
or pursuant to Interest Rate Swaps, as described in this section, shall provide that such obligations are
junior, inferior and subordinate in all respects to the Bonds issued pursuant to the Original Resolution as
to lien on and source and security for payment from the Resort Tax Revenues and in all other respects.
Limited Obligations
The Series 2026 Bonds shall not be and shall not be deemed to constitute a debt, liability or
obligation of the City, the County, the State or any political subdivision thereof within the meaning of any
constitutional, statutory or charter provisions or limitations, or a pledge of the faith and credit of the City,
the County, the State or any political subdivision thereof, but shall be payable solely from the Pledged
Funds. No Holder or Holders of any Series 2026 Bonds shall ever have the right to compel the exercise
of the ad valorem taxing power of the City, the County, the State or any political subdivision thereof, or
taxation in any form of any real or personal property therein, or the application of any funds of the City,
the County, the State or any political subdivision thereof to pay the Series 2026 Bonds or the interest
thereon or the making of any sinking fund or reserve payments provided for in the Original Resolution,
other than the Pledged Funds. The Series 2026 Bonds and the obligations evidenced thereby shall not
constitute a lien upon any property of or in the City, but shall constitute a lien only on the Pledged Funds,
to the extent, in the manner, and with the priority of application provided in the Original Resolution. See
"APPENDIX D - The Bond Resolution."
Modifications or Supplements to Bond Resolution
No adverse material modification or amendment may be made to the Original Resolution, or any
resolution supplementing or amending the Original Resolution, including, without limitation, the Series
2026 Resolution, without the consent in writing of (a) the Holders of more than fifty percent (50%) in
aggregate principal amount of the Bonds then Outstanding or (b) in case less than all of the several Series
of Bonds then Outstanding are affected by the modification or amendment, the Holders of more than fifty
percent (50%) in aggregate principal amount of the Bonds of each Series so affected and Outstanding at
the time such consent is given. However, no modification or amendment shall permit (i) a change in the
maturity or principal amount of any of the Bonds or a reduction in the rate of interest thereon, (ii) a change
in the promise of the City to pay the principal of and interest on any Bonds, as the same mature or become
due, from the Pledged Funds, or (iii) a reduction in the required percentage of Holders of the Bonds, as
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described above, for modifications or amendments, without the consent of all of the Holders of the Bonds
outstanding.
For the purpose of Bondholders' voting rights or consents authorized by the Original Resolution,
the consent of the Holders of any additional Series of Bonds shall be deemed given if the underwriters or
initial purchasers for resale consent in writing to such supplemental resolution and the nature of the
amendment effected by such supplemental resolution is disclosed in the official statement or other offering
document pursuant to which such additional Series of Bonds is offered and sold to the public.
In addition, for purposes of providing the written consent of the Holders of any Series of Bonds
to any supplemental resolution modifying or amending any term or provision of the Original Resolution,
to the extent any Series of Bonds is secured by a Credit Facility or Liquidity Facility, the consent of the
issuer of the Credit Facility or Liquidity Facility for such Series of Bonds shall constitute the consent of
the Holders of such Bonds.
Notwithstanding the foregoing, the City may, from time to time, without the consent of the Holders
of any Series of Bonds, amend, change, modify or alter the Bond Resolution for any of the specifically
authorized reasons set forth in Sections 601(a) through 6) of the Original Resolution. See "APPENDIX
D - The Bond Resolution."
BOND INSURANCE OPTION
THE INFORMATION IN THIS SECTION CONCERNING THE POLICY AND THE INSURER
HAS BEEN OBTAINED FROM THE INSURER. NEITHER THE CITY NOR THE UNDERWRITERS
TAKE RESPONSIBILITY FOR THE ACCURACY THEREOF.
All or a portion of the scheduled payment of the principal of and interest on the Series 2026 Bonds
when due may be guaranteed under the Policy to be issued concurrently with the delivery of the Series
2026 Bonds by the Insurer. The City will make the determination whether to purchase a Policy to insure
all or a portion of the Series 2026 Bonds, if any, at the time the Series 2026 Bonds are priced. See
"BOND INSURANCE RISK FACTORS" herein.
Bond Insurance Policy
In the event any of the Series 2026 Bonds are insured, concurrently with the issuance of the Series
2026 Bonds, the Insurer will issue the Policy for the insured Series 2026 Bonds. The Policy guarantees
the scheduled payment of principal of and interest on the insured Series 2026 Bonds when due as set forth
in the form of the Policy included as Appendix G to this Official Statement.
The Policy is not covered by any insurance security or guaranty fund established under New York,
Maryland, California, Connecticut or Florida insurance law.
The Insurer
[TO BE PROVIDED BY THE INSURER]
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BOND INSURANCE RISK FACTORS
At pricing, the City will determine whether to purchase the Policy for all, a portion or none of the
Series 2026 Bonds. If the Policy is purchased, the following are risk factors related to municipal bond
insurance.
In the event of default of the scheduled payment of debt service on the insured Series 2026 Bonds,
if any, when all or some becomes due, the Paying Agent on behalf of owners of such insured Series 2026
Bonds will have a claim under the Policy for such payments. However, in the event of any default or
otherwise, the payments are to be made in such amounts and at such times as such payments would have
been due had there not been any such default. The Insurer may direct and may have the right to consent
to any remedies and the Insurer's consent may be required in connection with amendments to any
applicable Series 2026 Bond documents.
In the event the Insurer is unable to make payment of the principal of and interest on the insured
Series 2026 Bonds, if any, as such payments become due under a Policy, such insured Series 2026 Bonds
are payable solely from the moneys received pursuant to the Bond Resolution. In the event the Insurer
becomes obligated to make payments with respect to such insured Series 2026 Bonds, no assurance is given
that such event will not adversely affect the market price of the insured Series 2026 Bonds or the
marketability (liquidity) for the insured Series 2026 Bonds.
The long-term ratings on the insured Series 2026 Bonds, if any, are dependent in part on the
financial strength of the Insurer and its claims paying ability. The Insurer's financial strength and claims
paying ability are predicated upon a number of factors which could change over time. No assurance is
given that the long-term ratings of the Insurer and of the ratings on any Series 2026 Bonds insured by the
Insurer will not be subject to downgrade and such event could adversely affect the market price of the
insured Series 2026 Bonds or the marketability (liquidity) for the insured Series 2026 Bonds.
The obligations of the Insurer are unsecured obligations of the Insurer and in an event of default
by the Insurer, the remedies available may be limited by applicable bankruptcy law or other similar laws
related to insolvency. See "RATINGS" herein.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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DEBT SERVICE SCHEDULE
The following table sets forth the Annual Debt Service Requirement for each Fiscal Year for the
Series 2026 Bonds.
Fiscal Year
Ending
September 30 Principal Interest Total
2026 $ $ $
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
Total $� $ems $sew
THE RESORT TAX
General
Pursuant to Chapter 67-930, Laws of Florida, as amended, certain municipalities of the State may
impose a municipal resort tax of up to four percent (4%) on transient rentals of living or sleeping
accommodations and up to two percent (2%) on the sales price of all items of food or beverage sold at
retail or alcoholic beverages for consumption on the premises of any place of business required by law to
be licensed by the State Division of Hotels and Restaurants. Under the Act, funds from the collection of
the Resort Tax may be used only for the following purposes: (i) creation and maintenance of convention
and publicity bureaus, cultural and art centers, (ii) enhancement of tourism, publicity and advertising, (iii)
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paying future costs for the purchase, building, designing, engineering, planning, repairing, reconditioning,
altering, expanding, maintaining, servicing and otherwise operating auditoriums, community houses,
convention halls, convention buildings or structures, and (iv) other related purposes, including relief from
ad valorem taxes theretofore levied for such purposes. Within the County, only the cities of Bal Harbour,
Miami Beach and Surfside are authorized to levy a resort tax.
The City has historically levied the Resort Tax in the amount of three percent (3%) on the rent of
every occupancy of a room or rooms in any hotel, motel, rooming house or apartment house in the City
when the rental of such facilities is for the period authorized for the imposition of a transient rental tax.
A transient rental tax period is generally described in Section 212.03, Florida Statutes, as a rental of living
quarters or sleeping or housekeeping accommodations in a structure or facility for a period of less than six
(6) months. The Resort Tax also has been historically levied by the City in the amount of two percent
(2%) on the total sales price of all items of food and beverage, including alcoholic beverages, sold at retail
of any restaurant in the City. "Restaurant' means any business or place for serving food or refreshments
required by law to be licensed by the Hotel and Restaurant Commission of the State or any premises
licensed by the City for the sale of intoxicating liquor or wine. "Alcoholic beverages" means all distilled
or rectified spirits, brandy, whiskey, rum, gin, cordials, or similar distilled alcoholic beverages, including
all dilutions and mixtures of one or more of the foregoing, and wines.
In addition to the Resort Tax historically collected by the City, in connection with the issuance of
the Series 2015 Bonds, the City Commission enacted Ordinance No. 2015-3975 on October 28, 2015 to
provide that an Additional Tax of one percent (1 %) on the rent of every occupancy of a room or rooms
in any hotel, motel, rooming house or apartment house in the City be levied and collected. Subject to the
rights of holders of bonds, including the Series 2026 Bonds, the Additional Tax of one percent (1 %) is
required to be used solely for the purposes of expanding, enlarging, renovating, and/or improving the
Convention Center, including payment of debt service related thereto. The City Charter provides that the
Additional Tax of one percent (1%) for Convention Center improvements could not be imposed until such
time as the City had entered into an agreement with a developer for the expansion, enlargement, renovation,
and/or improvement of the Convention Center. Such agreement was approved by the adoption of
Resolution No. 2015-29188 by the City Commission on October 21, 2015. The City Charter also provides
that any excess from the Additional Tax of one percent (1%) for Convention Center improvements may
be used, after providing for payment of annual debt service and related obligations, to establish and
maintain a capital renewal and replacement fund for improving and maintaining the Convention Center.
Amendment of the City Charter to authorize imposition of the Additional Tax of one percent (1 %)
for Convention Center improvements and to establish a capital renewal and replacement fund for the
Convention Center was approved by the registered and qualified voters of the City in a special election held
on August 14, 2012. The Series 2015 Bonds were issued in December 2015 and the levy of the Additional
Tax of one percent (1 %) commenced in connection with such issuance. Imposition of the one percent (1 %)
Additional Tax for Convention Center improvements provides for the levy of the Resort Tax on transient
rentals of living or sleeping accommodations in the full four percent (4%) authorized under the Act.
Payment of Resort Tax
Resort Taxes are paid by the person paying rent for the transient rental of living or sleeping
accommodations to the person providing such accommodations or by the person paying for the food and/or
beverage to the restaurant providing such food and/or beverage. The Resort Taxes are required to be
collected by each Operator (as hereinafter defined) at the time the transient rental payment or payment for
food and/or beverage is made. Resort Taxes are paid by each Operator to the Chief Financial Officer
monthly, or quarterly, if authorized by the Chief Financial Officer for Operators whose Resort Tax
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remittance did not exceed $100.00 the previous quarter. The Chief Financial Officer has not provided such
authorization for any Operator. "Operator" means any person operating a hotel, motel, rooming house,
apartment house, or restaurant serving food, and any premises licensed by the City to sell beverages,
intoxicating liquors or wine in the City, including but not limited to the owner or proprietor of such
premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such
hotel, motel, rooming house, apartment house, restaurant serving food, and any premises licensed by the
City to sell beverages, intoxicating liquors or wine.
Operators are required to provide the City with records of their sales or rentals, as applicable, and
the City is authorized to audit or inspect the records and accounts of Operators. Based on such audit or
inspection, the City may correct by credit any overpayment of the Resort Tax and, in the event of a
deficiency in payment, may impose an assessment in the amount of such deficiency. The Chief Financial
Officer also may estimate the amount of Resort Tax due from any Operator that has not paid Resort Taxes
nor made available such Operator's records and accounts; provided, however, that such Operator shall be
entitled to a hearing relating to the Resort Taxes determined by the Chief Financial Officer to be due and
unpaid. Operators also are entitled to a refund of any Resort Taxes, or interest or penalty thereon, that it
can demonstrate were overpaid for any reason. Upon annual renewal or reissuance of its business license,
as a condition of such renewal or reissuance, each business subject to payment of the Resort Tax shall
provide evidence of payment of all Resort Taxes and applicable penalties, interest and other charges.
The total receipts from the Resort Tax levy are required to be kept and maintained in a separate
fund of the City. In no event are Resort Tax Revenues allowed to be transferred to the City's general fund.
Penalties for Nonpa- ment
Whenever any Operator has been delinquent by more than thirty (30) days in the remittance to the
City of the Resort Tax, the Chief Financial Officer may require the Operator to escrow Resort Tax
collections on a daily basis, or such other basis as the Chief Financial Officer deems appropriate, through
the use of a depository receipt system or escrow account with any national or state bank located in the
County. If any Operator fails to deposit Resort Tax funds through a depository receipt system or escrow
account required by the Chief Financial Officer, or if any Operator fails to pay Resort Taxes to the City
when due, then, in addition to the liability imposed upon the Operator, all responsible officers of such
Operator shall be liable for the payment of the Resort Tax and all penalties and interest which shall accrue
thereon. The liability of each such responsible officer shall be joint and several with the liability of the
Operator and of each other responsible officer of the Operator. In addition, delinquent Resort Taxes shall
constitute a lien upon the property, real and personal, of each responsible officer of the Operator as if such
officer were the Operator. Also, see "THE RESORT TAX - Liens for Nonpayment" herein.
Any Operator who fails to remit any Resort Tax within the time required shall pay a penalty of ten
percent (10%) of the amount of the Resort Tax, in addition to payment of the Resort Tax. Any Operator
who fails to remit the Resort Tax on or before the thirtieth (30th) day following the date on which the
Resort Tax first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the
amount of the Resort Tax, in addition to payment of the Resort Tax and the ten percent (10%) penalty first
imposed. An additional penalty of ten percent (10%) of the amount of the Resort Tax shall be paid for
each additional 30-day period or part thereof during which the Resort Tax shall be delinquent, provided
that the total penalty imposed shall not exceed fifty percent (50%) of the original amount of the Resort Tax.
If the Chief Financial Officer determines that nonpayment of any Resort Tax is due to fraud, a
penalty of fifty percent (50%) of the amount of the Resort Tax shall be added to the amount due, in
addition to the amount of any penalties due as a result of nonpayment. Further, in addition to the penalties
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imposed for nonpayment, any Operator who fails to remit any Resort Tax is required to pay interest at the
highest legal rate of interest permitted by law on the amount of the Resort Tax due, exclusive of penalties,
from the date on which the Resort Tax first became delinquent until paid.
All penalties imposed on any delinquent Resort Taxes, and interest on such delinquent amount,
shall become a part of the Resort Taxes required to be paid. In addition, violations of the provisions
requiring the payment of Resort Taxes may result in prosecution of the violators and/or revocation or
suspension of the business tax receipt or certificate of use of the Operator.
Liens for Nonpayment
If any Operator neglects or refuses to pay Resort Taxes after such taxes are due, and demand for
the payment of such taxes has been made upon the Operator, the amount, including the maximum rate of
interest allowable by law and the amount of any penalty for nonpayment, together with any costs of
collection that may accrue, shall constitute a lien in favor of the City upon all property and rights to
property, whether real or personal, of such Operator. Until fully paid and discharged, such lien shall be
imposed as a special assessment lien against the subject property and shall remain a lien equal in rank and
dignity with the lien of ad valorem taxes, superior in rank and dignity to all other liens, encumbrances,
titles and claims in, to or against the subject property. The lien shall continue in full force and effect until
liability for the amount of the delinquent Resort Taxes and other charges is satisfied or becomes
unenforceable by reason of lapse of time.
The Chief Financial Officer or his authorized deputy may issue a notice of lien and cause such
notice to be recorded with the clerk of the circuit court. Such lien shall secure the Resort Taxes and other
charges due as of the date of its filing, together with such further Resort Taxes as may become delinquent
prior to the time the lien shall be released by the Chief Financial Officer. Upon recording, the amount
stated in the notice of lien shall become a perfected lien upon the delinquent Operator's real property. The
notice of lien shall also perfect a lien upon any personal property of the Operator located within the County
after service of a copy of the notice has been made upon any person having custody or possession of any
personal property of the Operator. Thereafter, such person shall be liable to the City if such person fails
to hold the property for the use and benefit of the City, pending foreclosure of the lien. Also, see "THE
RESORT TAX - Penalties for Nonpayment" herein for a description of the lien that may be imposed upon
the property of a responsible officer of the Operator for the failure or refusal of the Operator to pay Resort
Taxes.
Exemptions from Resort Tax
Notwithstanding the foregoing, Resort Taxes are not required to be paid by:
(1) Federal, state or city governments or any agency thereof.
(2) Any nonprofit religious, nonprofit educational or nonprofit charitable institutions when
engaged in carrying on the customary nonprofit religious, nonprofit educational or
nonprofit charitable activities.
(3) Any rents paid by a permanent resident on such resident's permanent place of abode,
provided that no permanent resident shall be permitted to have more than one (1)
exemption during the same period of time. No Resort Tax shall be imposed on any rents
paid by a lessee, or the individual occupant with a written lease for a term longer than six
(6) months, provided that the lessee, or the individual occupant authorized by the lease to
occupy the premises, actually occupies the premises on a continuous basis for longer than
six (6) months. Resort Taxes shall be imposed on any rents paid by a lessee or individual
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occupant during the first six (6) months of the occupancy term, unless there is a written
lease for a period longer than six (6) months, and provided that the lessee, or the
individual occupant authorized by the lease to occupy the premises, actually occupies the
premises on a continuous basis for longer than six (6) months.
(4) School lunches served to students and teachers and all hospital meals and rooms.
(5) All premises and all transactions exempted under the provisions of Section 212.03, Florida
Statutes, as amended. Such provision provides exemptions for rentals that exceed six (6)
months, as well as:
(a) full-time students enrolled in an institution offering postsecondary education;
(b) military personnel currently on active duty who reside in hotels, apartment houses,
rooming houses, tourist or trailer camps, mobile home parks recreational vehicle
parks, condominiums or timeshare resorts;
(c) persons who reside in any building or group of buildings intended primarily for
lease or rent to persons as their permanent or principal place of residence;
(d) facilities for which the owner has made a verified declaration on a form prescribed
by the Department of Revenue of the State that more than one-half ('/z) of the total
rental units available are occupied by tenants who have a continuous residence in
excess of three (3) months; and
(e) living accommodations in migrant labor camps (defined as buildings or structures,
tents, trailers, vehicles or any portion thereof, together with the land appertaining
thereto, established, operated or used as living quarters for seasonal, temporary or
migrant workers).
(6) Any transaction involving rent or a sales price of less than $0.50.
Miami Beach Visitor and Convention Authority
Pursuant to ordinances of the City, as codified in Chapter 102, Article IV, of the City Code, the
City created a tourist development authority, known as the Miami Beach Visitor and Convention Authority
(the "Authority") to take all necessary and proper action to promote the tourist industry for the City. In
accordance with the City Code, the City is required to allocate and appropriate to the Authority five percent
(5%) of the Resort Taxes collected by the City (excluding, however, any portion of the Additional Tax),
net of a collection fee to the City of four percent (4%) of such Resort Taxes collected. However, pursuant
to the provisions of the City Charter, the City's obligation to allocate and appropriate five percent (5%)
of the Resort Tax collections described in the preceding sentence to the Authority shall be junior and
subordinate in all respects to any and all obligations of the City under the Bond Resolution, including the
Series 2026 Bonds, or any other ordinances and resolutions pursuant to which the City issues bonds or
other indebtedness secured by the Resort Tax.
Summary Statement of Revenues and Expenditures
[ALL INFORMATION IN THIS SECTION SHALL BE UPDATED]
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Set forth below is a summary of Resort Tax Revenues by source for Fiscal Years 2011 through
2015 and projected for Fiscal Year 2016.
Resort Tax Revenues By Source
Fiscal Year Ended September 30
Fiscal Year
Ending
Source of Resort
(Unaudited)
September 30
Tax Revenues 20111 20121" 2013"' 2014"'
2015''
2016'3'
3% on Transient Rentals $26,952,453 $29,616,708 $33,367,131 $35,315,559
$38,679,345
$39,839,725
1% Additional Tax _ _ _ _
—
11,066,590
on Transient Rentals
2% on Food and 21,821,438 24,303,459 25,250,861 26,444,959
28,683,655
30,189,083
Beverages
Total $48,773,891 $53,920,167 $58,617,992 $61,760,S18
$67,363,000
$j8 095,398
Source: City of Miami Beach, Florida Department of Finance.
(1) Based on actual, audited amounts for the period indicated.
(2) Represents projected amounts, based on projections of the City from actual collections as of June 30, 2015.
(3) Represents projected amounts, based on actual amounts collected to date for Fiscal Year 2015, plus the amount projected to
be collected from the Additional Tax of one percent (l %) for Convention Center improvements, prorated for the ten (10) month
period such Additional Tax will be collected for Fiscal Year 2016. See "THE RESORT TAX - General" herein.
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A summary of historical and current comparative financial information of the City's Resort Tax Fund is
presented below.
Statement of Revenues, Expenditures and
Changes in Fund Balances of the Resort Tax Fund
Revenues:
Resort Taxes
Interest
Special assessment'
Other
Total Revenues
Expenditures:
General government
Culture and recreation
Capital outlay
Interest and fiscal charges
Total Expenditures
Excess of revenues over
expenditures
Transfers out
Net change in fund balances
Fund balances - beginning
of year
Fund balances - end of year
Fiscal Year Ended September 30,
(Unaudited)
2011"' 2012"' 2013"' 2014"' 2015")
$48,773,891
119,568
721,440
13.176
49,628,075
1,068.652
7,305,908
-0-
-0-
8,374,560
$53,920,167
83,162
662,091
8.557
54,673,977
1,160,882
10,080,318
-0-
-0-
11,241,200
$58,617,992
92,897
724,469
7.693
59,443,051
1,070,627
10,539,292
-0-
-0-
11,609,919
$61,760,518
109,636
620,616
13.067
62,503,837
1,097,907
11,417,173
-0-
633
12,515,713
$67,363,000
64,360
272,478
10.924
67,710,762
1,410,000
15,012,800
162,060
1.239
16,586,099
41,253,515 43,432,777 47,833,132 49,988,124 51,124,663
(39,585,950) (38,063,307) (43,319,057) (50,392,830)
1,667,565 5,369,470 4,514,075 (404,706)
8,440,145 10,107,710 15,477,180 19,991,255
$10,107,710 $15,477,180 $19,991,255 $ l 9,586,549
(49,113,000)
2,011,663
19,586,549
$21,598,212
(1) Source: Comprehensive Annual Financial Report of the City of Miami Beach, Florida for Fiscal Years ended
September 30, 2011 through September 30, 2014.
(2) Source: City of Miami Beach, Florida, Department of Finance. Represents unaudited actual totals and is subject
to year-end adjustments.
(3) Represents payments made by property owners of Allison Island and Lincoln Road to reimburse the City for capital
improvements installed by the City for the benefit of such property owners. Such property owners have been assessed
their proportionate share of the cost of the improvements. Payment of the special assessments are deposited by the
City into the Resort Tax Fund. However, the special assessment payments do not constitute Resort Tax Revenues
under the Bond Resolution.
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Historical and Projected Debt Service Coverage
The information in the following table sets forth the historical and projected collection of Resort
Tax Revenues, Maximum Annual Debt Service for the Series 2026 Bonds and coverage provided, or
projected to be provided, by the Resort Tax Revenues.
Resort Tax Revenues, Debt Service
and Debt
Service Coverage
Coverage on
Maximum Annual
Maximum Annual
Fiscal
Resort Tax
Debt Service on
Debt Service for
Year
Revenues
Series 2026 Bonds'"
Series 2026 Bonds"'
2011
$48,773,891
$12,496,250
3.90x
2012
53,920,167
12,496,250
4.31
2013
58,617,992
12,496,250
4.69
2014
61,760,518
12,496,250
4.94
20151"
67,363,000
12,496,250
5.39
20161"
81,095,398
12,496,250
6.49
2017`'
83,308,716
12,496,250
6.67
2018"'
83,308,716
12,496,250
6.67
2019`"
83,308,716
12,496,250
6.67
20201"
83,308,716
12,496,250
6.67
Source: City of Miami Beach Finance Department.
(1) Represents the Maximum Annual Debt Service on the Series 2026 Bonds, assuming an aggregate principal
amount of $192,950,000, a final maturity of September 1, 2045, and a true interest cost of 3.990% per
annum. The assumed Maximum Annual Debt Service on the Series 2026 Bonds is included in the historical
years solely for purposes of showing the amount of coverage that would have been available if the Series
2026 Bonds had been issued prior to Fiscal Year 2011. The assumed Maximum Annual Debt Service occurs
in Fiscal Year 2043. All amounts are preliminary, subject to change.
(2) Represents total, unaudited, Resort Tax Revenues of $49,603,676 for the nine (9) month period beginning
October 1, 2014 and ended June 30, 2015, plus total, estimated and unaudited Resort Tax Revenues of
$17,759,324 for the three (3) month period beginning July 1, 2015 and ended September 30, 2015.
(3) Represents projected amounts, based on actual amounts collected to date for Fiscal Year 2015, plus the
amount projected to be collected from the Additional Tax of one percent (1 %) for Convention Center
improvements, prorated in Fiscal Year 2016 for the ten (10) month period such Additional Tax will be
collected for Fiscal Year 2016. See "THE RESORT TAX - General" herein. Amounts presented assume
no growth in Resort Tax Revenues from the amounts projected for Fiscal Year 2016. However, the actual
annual increase in Resort Tax Revenues from Fiscal Year 2011 to Fiscal Year 2015 averaged approximately
8.42%, with the largest increase of approximately 10.55% occurring from Fiscal Year 2011 to Fiscal Year
2012 and the smallest increase of approximately 5.36% occurring from Fiscal Year 2013 to 2014. Also, see
"THE RESORT TAX - Future Developments" herein.
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Recent Developments
[ALL INFORMATION IN THIS SECTION SHALL BE UPDATED]
The City has experienced significant growth in economic activity in recent years. The number of
building permits issued for Fiscal Year 2015 increased to 14,396, from 13,972 in Fiscal Year 2014. In
Fiscal Year 2007 building permits totaled 12,644. Prior to the economic downturn, Fiscal Year 2007
experienced the highest number of building permits ever issued in the City. Building permits issued since
Fiscal Year 2013, however, have exceeded the peak number of permits issued at the previous height of
building activity in the City in Fiscal Year 2007. For more detailed information relating to building permit
activity in the City, see the section captioned "BUILDING PERMITS" in "APPENDIX A - General
Information and Economic Data Regarding the City of Miami Beach, Florida and Miami -Dade County,
Florida."
Included among the building activity in the City is the development of new hotels. Set forth below
is a list of the new hotels recently opened in the City or scheduled to open during the current Fiscal Year,
the month such hotels opened or are scheduled to open and the number of rooms to be added to the City's
hotel room inventory. Total hotel room inventory in the City was determined to be 17,751 in Fiscal Year
2014. Since calendar year 2011, occupancy rates in the City's hotels have been consistently above seventy
percent (70%), with seventy-seven percent (77%) of the City's hotel rooms occupied during calendar year
2014. Room rates averaged $252.00 per night, with revenue per rooms available totaling $194.00 per
night, for calendar year 2014.
New Hotel Developments
Number of
Name of Hotel
Opening Date
Rooms Available
Thompson Miami Beach
March 2015
380
1 Hotels and Residences
April 2015
426
AC Hotels by Marriott
June 2015
150
The Angler's Boutique Hotel
June 2015
45
Hyatt Centric South Beach
June 2015
105
Aloft Hotel South Beach
June 2015
235
The Hall South Beach
October 2015
163
Faena Hotel
December 2015
169
Berkeley Hotel
December 2015
110
TOTAL - 2015
1,783
Hilton Garden Inn Miami South Beach
January 2016
96
Residence Inn
January 2016
116
Jade Hotel
June 2016
70
TOTAL - 2016
282
TOTAL NEW HOTEL SUPPLY
2.065
Source: City of Miami Beach Planning Department.
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Future Developments
The City has contracted with a major developer to construct a Miami Beach Convention Center
headquarters hotel (the "Convention Center Hotel") adjacent to the Convention Center. The Convention
Center Hotel is in the early stages of construction and is being built on public land at the comer of 1 T"
Street and Convention Center Drive, directly behind the Fillmore Miami Beach at the Jackie Gleason
Theater. The Convention Center Hotel is currently anticipated to be completed . When
complete, the Convention Center Hotel will be an eight hundred (800) room, thirty (30) story, up -scale
facility that will connect directly to the Convention Center.
Since the land on which the Convention Center Hotel is being built constitutes public land, the
developer was required to enter into a long-term ground lease with the City, which provides conditions for
the hotel development. Significant increases in Resort Tax Revenues are expected to result from the
construction and operation of the Convention Center Hotel. Such construction and operation is expected
to occur as planned. However, no assurance can be given that current plans will be achieved in the manner
and/or time period contemplated, or that when completed, the Convention Center Hotel will produce the
positive economic impact it is expected to generate.
[ADDITIONAL INFORMATION MAY BE PROVIDED]
INVESTMENT CONSIDERATIONS
General
The City's ability to receive Resort Tax Revenues in amounts sufficient to pay all of its obligations,
including, without limitation, debt service on the Series 2026 Bonds, depends upon numerous
considerations, a substantial number of which are not within the control of the City. The following
discussion provides information relating to certain considerations that could affect future payments of the
principal of and interest on the Series 2026 Bonds. The order in which the following information is
presented is not intended to reflect the relative importance of the considerations discussed. The following
information is not, and is not intended to be, an exhaustive list of the considerations which should be
weighed by an investor seeking to determine whether to purchase Series 2026 Bonds and such information
should be read in conjunction with all of the other sections of this Official Statement, including its
appendices. Prospective purchasers of the Series 2026 Bonds should carefully analyze the information
contained in this Official Statement, including its appendices (and including the additional information
contained in the form of the entire documents referenced or summarized herein), for a more complete
description of the investment considerations relevant to purchasing the Series 2026 Bonds. Copies of any
documents referenced or summarized in this Official Statement are available from the City. See
"INTRODUCTION" herein. Also, see "RISK FACTORS" herein for a description of certain risks that
should be considered in connection with any decision to purchase Series 2026 Bonds.
Notwithstanding the foregoing, the impact to the City from any of the investment considerations
described herein will not affect the obligation of the City to levy and collect Resort Taxes or to make
timely deposits from such levy and collection of the amounts required to be deposited into the funds and
accounts created under the Original Resolution to secure the payment of debt service on the Series 2026
Bonds. Sec "SECURITY AND SOURCES OF PAYMENT" herein.
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Infectious Disease Outbreak
The outbreak of COVID-19 in the United States in early calendar year 2020 affected travel,
commerce and financial markets globally. In response, the City undertook certain cost reduction strategies
to offset potential or projected shortfalls in Resort Tax Revenues to lessen the impact of COVID-19. Also,
pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the City received a one-
time award of $41.1 million in reimbursements for unbudgeted General Fund expenditures incurred in
response to COVID-19. In addition, pursuant to the American Rescue Plan Act of 2021 ("ARPA"), the
City received a one-time award of approximately $23.6 million to address revenue shortfalls attributable
to COVID-19. All of such funds have been spent by the City to cover increased financial obligations
caused by the impacts of COVID-19. As a result, although Resort Tax Revenues decreased, no materially
negative effect on the required use of such revenues resulted from the impacts of COVID-19.
While the cost reduction strategies, and the CARES Act and ARPA funding described above helped
the City address certain anticipated negative impacts of COVID-19, and many of the effects of the COVID-
19 pandemic were temporary, the pandemic altered the behavior of businesses and people in a manner that
adversely affected global and local economies after pandemic generated restrictions were lifted. Similar
or even greater effects could result from an outbreak of some other contagious disease, epidemic or
pandemic. No assurance can be given that the changes produced by the outbreak of COVID-19, to the
extent any negative impact continues, or an outbreak of some other contagious disease, epidemic or
pandemic, will not materially adversely affect the ability of the City to collect Resort Tax Revenues in the
amounts currently anticipated, which could have an adverse impact on the payment of debt service on the
Series 2026 Bonds.
Climate Change
The State of Florida is naturally susceptible to the effects of extreme weather events and natural
disasters, including floods, droughts and hurricanes. The occurrence of such events and natural disasters
can produce significant negative ecological, environmental and economic impacts. Such impacts can be
exacerbated by a longer -term shift in the climate over several decades (commonly referred to as climate
change), including increasing global temperatures and rising sea levels.
Numerous scientific studies on global climate change conclude that, among other effects on the
global ecosystem, extreme and abnormal temperature fluctuations have occurred globally and, without the
implementation of measures to address the phenomenon, will continue to occur. Such occurrences have
been determined by scientific studies to be the primary reason for current and projected increases in sea
levels and for extreme weather events to occur in higher frequency and intensity. Projected changes in
weather and tidal patterns place coastal areas like the City at risk of substantial wind or flood damage over
time, affecting private development and public infrastructure, including roads, utilities, emergency services,
schools, and parks. As a result, global climate change increases the potential of considerable financial loss
to the City, including, without limitation, substantial losses in property and other tax revenues. In addition,
many residents, businesses and governmental operations could be severely disabled for significant periods
of time or displaced, and the City could be required to mitigate these effects at a potentially material cost.
The City is keenly aware of the risks from hurricanes and sea level rise. Consequently, advanced
emergency management procedures and more stringent construction codes were implemented by the County
and the State to reduce risks from hurricanes and flooding. In the City, since elevation is higher on the
east side of the City, capital projects designed to reduce the negative impacts of sea level rise and to control
flooding have been prioritized so that the installation of improvements designed to address the impact of
climate change are initially concentrated on the west side of the City. In addition, to address issues related
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to climate change, the City developed three (3) areas of concentration: (i) accessing the best available
science and engineering; (ii) addressing critical public infrastructure needs of the more vulnerable areas,
while taking a deliberate and measured look at longer term strategies that reduce flood risks; and (iii)
addressing private infrastructure through land use changes and guidance that reduces flood risks for historic
and private property. The City also completed a vulnerability assessment of public assets to identify and
prioritize vulnerable assets and develop flexible and responsive adaptations and mitigation measures. More
detailed information concerning the City's climate change assessments, strategies and initiatives is provided
on the City's Rising Above web page at: http://www.mbrisingabove.com/.
Science and Engineering
The City conducts infrastructure planning and land use changes based on scientific studies and
information most applicable to the City concerning sea level rise and flood projections, along with local
tidal and rainfall gauges. The City participates in the Southeast Florida Regional Climate Change Compact
(the "Compact") and works regionally to collaborate on climate change issues, including sea level rise.
The City has adopted the Compact's Unified Sea Level Rise Projection for Southeast Florida and uses such
projection when planning, designing and constructing capital projects. The City also relies upon the
climate change strategies described in the Compact's Regional Climate Action Plan. The Compact's
Regional Climate Action Plan may be viewed on the Compact's website at:
http://southeastfloridaclimatecompact.org/.
The City also was selected by the Rockefeller Foundation as part of its 100 Resilient Cities
initiative to create a resilience strategy with the County and the City of Miami in a unique partnership,
referred to as the Greater Miami and the Beaches partnership. The partnership's focus is the development
of strategies and initiatives to reduce climate change risks. The partnership's resilience strategy was
adopted in July 2019 and many initiatives have been implemented. In 2019, as the 100 Resilient Cities
initiative came to a close, member cities and Chief Resilience Officers spearheaded the next phase of the
initiative, which led to its transition into the Resilient Cities network. The City continues to work closely
with the Resilient Cities network to plan measures designed to alleviate the shocks and stresses generated
by the effects of climate change.
Public Infrastructure
One of the most critical natural defenses against storm surge and certain negative impacts of
climate change is the County's renourished beaches and extensive coastal dune system on the east side of
the City. Such beaches and coastal dune system serve as a vital buffer between coastal infrastructure and
the impacts of wave action and surge during storm events.
The United States Army Corps of Engineers (the "USAGE") leads beach renourishment efforts with
the County as the local sponsor. The City participates in stakeholder meetings and assists with facilitating
logistics for renourishment. The USACE 50-year plan for beach renourishment was signed in 2022. For
information concerning such plan, see: https•//www.sai.usace.army.mil/MiamiDadeCSRM/.
The most recent beach renourishment was completed in 2023 at an estimated cost of $40,468,000.
The County is working with the USACE to secure funding for the next renourishment project. The County
has completed recent erosion assessments in the area and to complete a full survey and report in connection
with its next request for continued renourishment funding.
The USACE is also leading the preparation of a Miami -Dade County Back Bay Coastal Storm Risk
Management Feasibility Study. Areas in the City are being focused on for non-structural improvements,
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such as building elevation and the flood proofing of critical infrastructure. Such alternatives are intended
to incorporate protections to combat storm surge and sea level rise. The City implements the dune
management plan, which includes active vegetation management to stabilize and grow the dune system
(which reaches eighteen (18) feet at its highest point and nearly ten (10) feet on average). The City was
awarded a $1.3 million Resilient Florida grant to help maintain the dune system and allocates $290,000
annually for dune management projects.
The City has operated in an aggressive manner to address the critical infrastructure needs of some
of the more vulnerable areas of the City. The City has developed long-term programs and strategies for
more public infrastructure improvements and has completed several major studies to facilitate such
development and implementation. The City is also elevating seawalls it owns and integrating nature -based
shorelines, when feasible, further fortifying resilience and improving environmental resources. In addition,
the City recently updated its 2017 Vulnerability Assessment and Adaptation Plan through a Resilient
Florida grant to consider additional sea level rise scenarios, adding critical community facilities and
evaluating compound flooding. The Vulnerability Assessment was adopted by the City Commission in
2024. To accompany the Vulnerability Assessment, the City developed a draft Sea Level Rise Adaptation
Plan, which is nearly complete and in the legislative approval process. The update positively influences
the City's climate change and resiliency investments.
The current stormwater program for the City includes a total of eighty-three (83) proposed pump
stations, of which forty-eight (48) have been constructed and are in operation. The City also continues to
use twenty-three (23) older generation pump stations that were built during a previous stormwater
infrastructure program. Such older generation pump stations supplement the City's current resilience and
flood mitigation program as new pump stations are being designed and constructed. Among other sources
of funding, in calendar years 2015 and 2017, the City issued $100 million of Stormwater Revenue Bonds
and in calendar year 2017, $85 million of Water and Sewer Revenue Bonds to implement infrastructure
projects that will aid in the fight against the negative impacts of climate change. In 2018, the electors of
the City approved the issuance of various series of general obligation bonds; approximately $200 million
of such bonds are expected to be used to fund infrastructure projects that also will aid in the fight against
the negative impacts of climate change. hi addition, the City expects to utilize approximately $100 million
in tax increment revenue from the County to fund infrastructure projects for sea level rise mitigation. The
City is preparing, together with a consulting engineering firm retained for such purpose, an integrated water
management plan that will establish a strategy and schedule for the implementation during the next five
(5) to ten (10) years of infrastructure improvements designed to alleviate or prevent negative impacts
expected to result from climate change.
Recent improvements to the City's stormwater system have significantly increased the system's
pipe and pumping capacity, enabling the system to handle more intense rainfall in some areas. In addition,
roads have been elevated in the lowest lying areas of the City. As a result of such improvements, the City
has avoided numerous tidal flooding incidents in recent years.
Private Property
Efforts have been made to increase resilience for private property as well as to reduce the risk of
damage to historic properties. The City adopted the Resilience Code in 2023, replacing the former zoning
code, to further address climate adaptation and resilience. The Resilience Code incorporates numerous land
use code amendments adopted over the last few years in response to concerns emanating from the potential
impact of climate change. Included among the measures adopted are the establishment of (i) a requirement
for new homes to be built one (1) to five (5) feet higher than the Federal Emergency Management City
("FEMA") requirement; (ii) a minimum FEMA freeboard requirement for new construction and significant
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renovations throughout the City; (iii) sea level rise and resilience review criteria for use by land use boards
in the City; (iv) an increase in allowable height of commercial property to provide additional ground floor
height for future elevation of the first floor; (v) an increase in the elevation required for seawalls in the
City; (vi) an increase in required green space, with more setbacks for increased water permeability; and
(vii) an increase in the elevation required for certain land areas.
Among other actions taken to increase resilience for private property, the City recently implemented
its private property adaptation program (the "PPA Program"). The PPA Program offers up to $20,000 in
matching funds for property owners that want to conduct flood risk assessments and undertake flood
mitigation projects. To provide access to all property owners in the City, regardless of economic status,
the PPA Program waives the matching cost requirement for eligible projects for low to moderate income
property owners. Projects may include backflow prevention, mechanical and electrical flood protection,
wet and dry floodproofing and green infrastructure. The City also adopted Buoyant City design guidelines
for historic districts, anticipating the need of certain structures to elevate and adapt in place.
Projections of the effects of global climate change on the City are complex and depend on many
factors that are outside the control of the City. The scientific understanding of climate change and its
effects continues to evolve. In the fourth quarter of 2024, the Compact undertook a review of its 2019
Regionally Unified Sea Level Rise Projection vis-a-vis updates from the National Oceanic and Atmospheric
Administration's 2022 Sea Level Rise Technical Report, as well as observational trends in the sea level
in the region. Based on the review, the Compact provided a 2024 statement as guidance for the continued
use of the 2019 Regionally Unified Projection in Southeast Florida as a basis for resilience planning,
design, and construction. The City continues to plan infrastructure improvements to reduce the risks from
sea level rise and other adverse effects of climate change (e.g., the occurrence and frequency of 100-year
storm events, hurricanes, and king tides). However, the City cannot predict the exact timing or precise
magnitude of the adverse economic effects that may result from a severe weather event or the impacts of
climate change, including, without limitation, material adverse effects on the business operations or
financial condition of the City and the local economy during the term of the Series 2026 Bonds. While
the effects of climate change may be mitigated by the City's past and future investment in adaptation
strategies, the City can give no assurance about the net effects of those strategies and whether the City will
be required to take additional adaptive mitigation measures. If necessary, such additional measures could
require significant capital resources in excess of the resources already contemplated by the City to be spent
on adaptation strategies.
Cybersecurity
Computer networks and systems used for information transmission and collection are vital to the
efficient operations of the City. City systems provide support to departmental operations and constituent
services by collecting and storing sensitive information, including intellectual property, security
information, proprietary business process information, information regarding suppliers and business
partners, and personally identifiable information of customers, constituents and employees (collectively,
"Computer Information"). The secure processing, maintenance and transmission of Computer Information
is critical to effective departmental operations and the appropriate provision of citizen services.
Increasingly, governmental entities are being targeted by cyber-attacks seeking to obtain Computer
Information or disrupt critical services. A rapidly changing cyber risk landscape may introduce new
vulnerabilities that attackers and hackers can exploit in their efforts to effect breaches or service
disruptions. Employee error and/or malfeasance may also contribute to a loss of Computer Information
or other system disruptions.
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Protocols
A successful cybersecurity approach has multiple layers of protection spread across the computers,
networks, programs, and Computer Information that is to be protected. The City endeavors to integrate
its employees, computer processes, and technology to create an effective defense against cyber-attacks.
The City currently utilizes a global research and advisory firm that specializes in providing technology and
computer system consultation to guide the development and growth of its cybersecurity protections. For
its core infrastructure, the City relies on, among other protections, a combination of industry leading,
enterprise grade firewalls, network access controls, intrusion detection systems, email and web filtering,
advanced traffic analysis, endpoint protections, encryption, and digital rights management. There is
proactive monitoring of internal and external systems, with real time monitoring solutions and the use of
computer security best practices. The City provides yearly mandated security training for all City staff,
ongoing instruction and certifications for technical staff, and participation in industry acknowledged
educational conferences and training. The City reviews its cybersecurity protocols on an ongoing basis to
stay abreast of emerging and effective procedures and measures.
Threat Response
The City can respond to cybersecurity threats in many ways, depending on the severity and mode
of attack. The City has internal internet technology staff that it can use to respond to a cybersecurity threat,
including, without limitation, network administrators, database administrators, system administrators and
analysts and field technicians. Additionally, the City has internet security vendors on retainer to provide
industry expertise that can be quickly accessed to respond to and remedy a cybersecurity incident.
Budgetary funds are also available to secure the services of other professional consultants to respond to
a cybersecurity incident, if needed. The City's Security Operations Center monitors computer and network
logs for cybersecurity issues, constantly scanning infrastructure for vulnerabilities. In addition, the City
has other systems to monitor inbound and outbound traffic and to respond automatically with counter
measures when cybersecurity abnormalities occur.
The City regularly refines and seeks to improve its cybersecurity risk management policies and
procedures and regularly trains employees to comply with cybersecurity regulatory requirements. It also
maintains cyber risk insurance to help mitigate its exposure to security attacks that are known to cripple
an organization's technology system and/or fraudulently confiscate funds.
While City cybersecurity and operational safeguards are periodically tested, no assurances can be
given that such measures will ensure protection against all cybersecurity threats or attacks. Cybersecurity
breaches could damage or compromise the City's computer network and the confidentiality, integrity, or
availability of the City's computer system or the Computer Information. The potential disruption, access,
modification, disclosure or destruction of Computer Information could result in the interruption of City
commerce, the initiation of legal claims or proceedings, .liability under laws that protect the privacy of
personal information, regulatory penalties, and the loss of confidence in City functions, which could
adversely affect City revenues or cause a material disruption in the City's operations or the appropriate
provision of City services. The costs of remedying any such damage or protecting against future attacks
could be substantial and in excess of the maximum amount of the City's cyber risk insurance policy.
Further, the litigation to which the City could be exposed following a cybersecurity breach could be
significant, which could cause the City to incur material costs related to such legal claims or proceedings.
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RISK FACTORS
General
The following is intended only as a summary of certain risk factors accompanying an investment
in the Series 2026 Bonds and is not intended to be exhaustive of all potential risks. In order to allow
potential investors to identify risk factors and make an informed investment decision, a potential investor
should be thoroughly familiar with this entire Official Statement and the appendices hereto and should have
accessed whatever additional financial and other information it has deemed necessary to make its decision
to invest in the Series 2026 Bonds.
The City's ability to collect Resort Tax Revenues in amounts sufficient to satisfy the Annual Debt
Service Requirement for the Series 2026 Bonds depends upon numerous factors, most of which are not
within the control of the City. Further, additional and as -yet -unforeseeable circumstances may develop that
may negatively affect the ability of the City to collect Resort Tax Revenues in an amount sufficient to
comply with all of the financial obligations of the City under the Bond Resolution. Purchasers of the
Series 2026 Bonds are advised to consult their financial advisors as to the financial implications of
investing in the Series 2026 Bonds and their tax advisors as to the tax consequences of purchasing or
holding the Series 2026 Bonds. Described below are certain factors that could affect the City or its
operations, including the ability of the City to pay principal of and interest on the Series 2026 Bonds.
Also, see INVESTMENT CONSIDERATIONS" herein for a description of certain matters that should be
considered in connection with any decision to purchase Series 2026 Bonds.
Limited Obligation of City
Payment from Pledged Funds Onl
The ability of the City to make timely payments of the principal of and interest on the Series 2026
Bonds depends upon the ability of the City to collect Resort Tax Revenues which, together with earnings
thereon and on amounts held in the funds and accounts created under the Bond Resolution, will be adequate
to make such payments. The Series 2026 Bonds are not general obligations supported by the full faith and
credit of the City, the County or the State or any political subdivision thereof, but are payable solely from
the Pledged Funds. None of the City, the County or the State or any political subdivision thereof, has any
obligation or power under the Bond Resolution or under Florida law to levy any taxes in order to pay debt
service on the Series 2026 Bonds or to cure any default in any such payments.
Limited Replenishment of Deficiencies
Except for the Debt Service Reserve Account, there is no fund or account under the Bond
Resolution which is required to contain amounts to make up for any deficiencies in the event of one or
more defaults by the City in making payments of debt service on the Series 2026 Bonds and no amount
will be held in the Debt Service Reserve Account for the benefit of the Series 2026 Bonds. Resort Taxes
may be levied only in the manner and amount provided in the Act. See "THE RESORT TAX - General"
herein. There is no source from which the Sinking Fund will be replenished, except the Resort Tax
Revenues and investment income on moneys in the funds and accounts held under the Bond Resolution.
There can be no representation or assurance that the City will realize sufficient Resort Tax Revenues to
pay, when due, all required payments of debt service on the Series 2026 Bonds.
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Resort Tax Financing
Concentration of Revenues
Resort Tax Revenues are generated from taxes on the rent of a room or rooms in hotels, motels,
rooming houses and apartment houses in the City and on items of food or beverage sold at retail or
alcoholic beverages for consumption in restaurants. within the City. See "THE RESORT TAX - General"
herein. The occurrence of any event that has a major negative impact on the hotels or restaurants within
the City, including, without limitation, natural disasters (such as hurricanes and other major tropical storms
to which South Florida is naturally subject), could significantly reduce the Resort Tax Revenues collected
by the City which could, in turn, have a material adverse impact on the ability of the City to pay debt
service on the Series 2026 Bonds.
Competition from Comparable Properties
The current development strategy for the City, which will provide the ability for the City to
continue the levy and collection of Resort Tax Revenues in the amounts projected, is in competition with
other communities located outside the City whose development strategies are designed to attract patrons
to their area for transient rentals and restaurant service. In the event that areas outside the City are able
to attract a significant number of hotel and restaurant patrons away from the City, the reduction in the use
of hotels and restaurants in the City could significantly reduce the Resort Tax Revenues collected by the
City which could, in turn, have a material adverse impact on the ability of the City to pay debt service on
the Series 2026 Bonds.
Decreases in Tourism
The amount of Resort Tax Revenues collected historically and expected to be collected in the future
to pay debt service on the Series 2026 Bonds is, in part, heavily dependent upon the strength and vitality
of tourism in the area. Numerous factors could lead to a significant decrease in tourism, including, without
limitation, the economic and political factors described in the immediately succeeding paragraph or natural
disasters which cause significant damage to hotels and restaurants within the City (such as hurricanes and
other major tropical storms to which South Florida is naturally subject). Any or all of such events could
significantly reduce the Resort Tax Revenues collected by the City which could, in turn, have a material
adverse impact on the ability of the City to pay debt service on the Series 2026 Bonds.
State National and International Economic and Political Factors
Certain economic or political developments, such as new downturns in the State, national or
international economy, international currency fluctuations, increased national or intemational restrictions
on travel or other increased national or international barriers to tourism or trade, could all materially,
adversely affect the ability of the City to attract individuals, businesses and organizations to utilize the
hotels and restaurants within the City. The reduction in the use of hotels and restaurants in the City could
significantly reduce the Resort Tax Revenues collected by the City which could, in turn, have a material
adverse impact on the ability of the City to pay debt service on the Series 2026 Bonds.
Adverse Legislative Judicial or Administrative Action
The State legislature, the courts or an administrative agency with jurisdiction in the matter could
enact new laws or regulations or interpret, amend, alter, change or modify the laws or regulations
governing the definition, collection or distribution of tax revenues generally, or municipal resort tax
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revenues specifically, in a fashion that would materially, adversely affect the ability of the City to receive
Resort Tax Revenues in an amount sufficient to pay debt service on the Series 2026 Bonds.
No Feasibility Consultant
This Official Statement provides historical information and projections to demonstrate that the City
collects, and expects to continue to collect, sufficient Resort Tax Revenues to pay debt service on the Series
2026 Bonds. See "THE RESORT TAX - Historical and Projected Debt Service Coverage" herein. In
connection with the issuance of the Series 2026 Bonds, the City determined that it would not engage an
independent feasibility consultant to provide an analysis of projected growth in the City or to calculate
projected Resort Tax Revenues. As a result, while the City reasonably believes Resort Tax Revenues will
be sufficient to satisfy Annual Debt Service Requirements, no forecasts or projections of Resort Tax
Revenues, that have been independently verified by a consultant experienced in such matters, are included
in this Official Statement.
THE CITY
General
The City was incorporated as a municipal corporation on March 26, 1915 and was created by the
Florida Legislature, pursuant to Chapter 7672, Laws of Florida (1917). The City operates under a
Commission/City Manager form of government. The City Commission consists of the Mayor and six (6)
Commissioners who serve as the policy -making body of the City. The term for the Mayor is two (2) years,
with a lifetime term limit of three (3) two-year terms. The term for members of the City Commission is
four (4) years, with a lifetime term limit of two (2) four-year terms. City Commission terms are staggered
so that not all Commissioners are up for re-election at the same time. On a rotating basis, the City
Commission selects one (1) of its members to serve as Vice Mayor for a three-month term. The Mayor,
who is the presiding officer at City Commission meetings, may vote on all matters that come before the
City Commission, but has no power of veto.
The City Commission is responsible, among other things, for passing ordinances, adopting the
budget, approving property tax levies and debt secured by the full faith and credit of the City or any of its
revenue streams, appointing committees, and hiring the City Manager, the City Attorney and the City
Clerk. The City Manager is responsible for carrying out the policies and ordinances of the City
Commission, for overseeing the day -today operations of the City, and for appointing the heads of the
various departments, with the consent of the City Commission.
The City provides a full range of municipal services. These services include police and fire
protection, recreational activities, parks, cultural events, sanitation services, water, sewer and stormwater
services, public transportation, neighborhood community services, and the construction of and maintenance
of streets and infrastructure. For more detailed information about the City, see "APPENDIX A - General
Information Regarding the City of Miami Beach, Florida and Miami -Dade County, Florida."
Steven Meiner serves as the Mayor of the City. Mayor Meiner was first elected as Mayor on
November 7, 2023 and was reelected on November 4, 2025. His current term of office will expire in
November 2027. Set forth below is a list of the current members of the City Commission and the
expiration of their respective current terms of office:
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Miami Beach, Florida City Commission*
City Commission Members Date Term Ends
Laura Dominguez, Vice Mayor* November 2029
Tanya K. Bhatt November 2027
Alex J. Fernandez November 2029
Joseph Magazine November 2027
Monica Matteo-Salinas November 2029
David Suarez November 2027
* The term as Vice Mayor of Commissioner Dominguez began on April 1, 2026 and will expire
on July 31, 2026.
Organization
On behalf of the City, all matters relating to the levy and collection of the Resort Tax are managed
by the City Manager, an Assistant City Manager and the Chief Financial Officer. Set forth below is a
description of such management officials:
Eric T. Carpenter, P.E., City Manager. Mr. Carpenter was appointed City Manager for the City
in July 2024. As City Manager, Mr. Carpenter leads more than 2,300 city employees and oversees
approximately two dozen departments responsible for the operations of the City. Prior to his appointment
as City Manager, Mr. Carpenter served as the Director of the Public Works Department from when he
joined the City in 2013 until he was promoted to the position of Assistant City Manager in August 2015.
He served as Assistant City Manager until his promotion to Deputy City Manager in July 2021, serving
in such capacity until being appointed City Manager. Prior to his employment with the City, Mr. Carpenter
served as the Director of Public Works for the City of Doral, Florida from 2006 to 2013. Prior to his
employment with the City of Doral, Mr. Carpenter worked in the private sector as an engineering
consultant in the environmental, stormwater, and geotechnical fields. He has over 28 years of experience
in the industry. Mr. Carpenter is an active member of the American Public Works Association, where he
has been a member of the Board of Directors, serving as the Executive Board Chairman of the South
Florida Branch from 2017 to 2019. He has received numerous awards and accolades and, in 2010, was
awarded the Government Engineer of the Year Award by the Miami -Dade County Chapter of the American
Society of Civil Engineers. Mr. Carpenter received a Bachelor of Science Degree in Civil Engineering,
with a minor in Chemistry, from the University of Maryland. He received his license as a Professional
Engineer in Florida in 2004.
Maria Hernandez, Assistant City Manager. Ms. Hernandez was appointed the Assistant City
Manager in charge of the department responsible for the Convention Center and related development within
the City in April 2025. Ms. Hernandez has served in various positions for the City to oversee major
economic development projects. Since 2018, she has served as the Program Director for the City's General
Obligation Bond Program, where she has coordinated the implementation of $439 million of infrastructure
development, involving 57 master projects and numerous subprojects. In November 2022 an additional
$159 million in general obligation bond projects to improve facilities for resiliency of arts and culture
institutions throughout the City, among other art and cultural projects, were added to her area of
responsibility. In 2014, she was appointed Director of the Convention Center District to oversee the 25-
acre, $620 million renovation and expansion of the Convention Center, which was the largest capital
project in the history of the City, and she currently serves as the liaison for the City in connection with the
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development of the Convention Center Hotel. Prior to serving such roles, commencing in 2010, Ms.
Hernandez served as the Senior Capital Projects Coordinator for the City's Capital Improvement Projects
Department. Prior to her tenure with the City, Ms. Hernandez spent twenty years working in the private
sector in architecture and real estate development. Ms. Hernandez received a Bachelor of Arts Degree in
Architecture from the University of Miami and a Master of Arts in Building Design from Columbia
University. She is a registered architect in Florida and a LEED accredited professional.
Jason D. Greene, Chief Financial Officer. Mr. Greene was appointed Chief Financial Officer
for the City in February 2023. Prior to accepting his position as Chief Financial Officer, Mr. Greene
served as the Assistant Town Manager/Chief Financial Officer for the Town of Surfside from May 2020
to December 2022, where he also served as Acting Town Manager from July 2020 through November
2020. Mr. Greene also served as the Director of Finance for the Town of Surfside from July 2019 to May
2020. Prior to his positions with the Town of Surfside, Mr. Greene served as the Financial Controls and
Budget Manager for the Miami -Dade County Expressway Authority from June 2003 to July 2019, where
he also served as Controller and Capital Assets Manager. Prior to his positions in the public sector, from
1998 to 2003, Mr. Greene served as the Programs Controls Manager and as a consulting engineer for
several private engineering and financial consulting firms responsible for implementing or overseeing large
public infrastructure improvement programs, with an emphasis on civil/environmental engineering and
capital improvement project management. Mr. Greene is a member of and has served on Boards and
Committees for the national Government Financial Officers Association (GFOA). He is currently serving
on the GFOA Executive Board and is an active member of numerous other professional organizations and
associations. He has obtained Certified Government Finance Officer (CGFO), Certified Fraud Examiner
(CFE), Certified Public Funds Investment Manager (CPFIM), and Certified Internal Controls Auditor
(CICA) certifications. Mr. Greene received a Bachelor of Science Degree in Environmental Toxicology,
a Master of Science Degree in Civil Engineering, and a Master Degree in Business Administration, each
from the University of Miami.
For more detailed information relating to the City, see "APPENDIX A - General Information and
Economic Data Regarding the City of Miami Beach, Florida and Miami -Dade County, Florida."
PENSION AND OTHER POST EMPLOYMENT BENEFITS
[ENTIRE SECTION TO BE UPDATED, AS NEEDED]
Defined Benefit Plans
The City provides separate defined benefit pension plans for general employees of the City and for
the City's police and fire department personnel.
Employees' Retirement Plan
Plan Description. All full-time employees of the City who work more than thirty (30) hours per
week and hold classified and unclassified positions, except for police officers and firefighters and persons
who elected to join the defined contribution retirement plan sponsored by the City, arc covered by the
Miami Beach Employees' Retirement Plan (the "Employee Plan"). A classified employee and/or an
unclassified employee is any person employed by the City on a regular basis who receives compensation
from the City for personal services and who is within a group or classification of employees designated
by the Board of Trustees of the Employee Plan as eligible for membership in the Employee Plan. The
Employee Plan is a single employer defined benefit pension plan that was established by the City
Commission under Ordinance number 2006-3504. Effective on March 18, 2006, the Employee Plan was
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created under and by the authority of Chapter 18691, Laws of Florida, Act of 1937, as amended, by
merging the Retirement System for General Employees of the City of Miami Beach, created by the City
Commission pursuant to Ordinance number 1901, with the Retirement System for Unclassified Employees
and Elected Officials of the City of Miami Beach, created by the City Commission pursuant to Ordinance
number 88-2603, as amended.
All full-time classified and unclassified employees of the City, except those who joined the City's
defined contribution plan, must participate in the Employee Plan. See "PENSION AND OTHER POST
EMPLOYMENT BENEFITS - Other Retirement and Compensation Plans" herein. Membership in the
Employee Plan consisted of the following as of October 1, 2021, the date of the latest accrual valuation:
Employee Plan Membership
Inactive plan members and beneficiaries currently receiving benefits 1,124
Inactive plan members entitled to benefits but not yet receiving them 211 *
Active plan members
Total members
1,185
2,520
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report for the Fiscal Year ended
September 30, 2022.
Includes members of the Employee Plan who are enrolled in DROP (as hereinafter defined).
Plan Benefits. The Employee Plan provides retirement benefits as well as death and disability
benefits at three (3) different tiers, depending on (i) whether an employee is a member of one of the unions
representing employees of the City, (ii) which union the employee is a member of and (iii) when the
employee entered the Employee Plan. The first tier membership of the Employee Plan (the "Employee
Plan First Tier") includes any employee who became a member of the Employee Plan prior to the dates
which constitute the Employee Plan Second Tier. The second tier membership of the Employee Plan (the
"Employee Plan Second Tier") includes any employee who became a member of the Employee Plan on
or after (i) April 30, 1993 (but prior to September 30, 2010) for members of the American Federation of
State, County and Municipal Employees ("AFSCME") bargaining unit; (ii) August 1, 1993 (but prior to
September 30, 2010) for members of the Government Supervisors Association of Florida ("GSAF")
bargaining unit and members of the Employee Plan who are not included in any collective bargaining unit;
and (iii) February 21, 1994 (but prior to October 27, 2010) for members of the Communications Workers
of America ("CWA") bargaining unit. The third tier membership of the Employee Plan (the "Employee
Plan Third Tier") includes any employee who became a member of the Employee Plan on or after (i)
September 30, 2010 for members of AFSCME, GSAF and members of the Employee Plan who are not
included in any collective bargaining unit; and (ii) October 27, 2010 for members of CWA.
Classified members under the Employee Plan First Tier are eligible for normal retirement at age
fifty (50) and five (5) years of creditable service and are entitled to benefits of three percent (3%) of their
final average monthly earnings, multiplied by the first fifteen (15) years of creditable service, plus four
percent (4%) of their final average monthly earnings, multiplied by the years of creditable service in excess
of fifteen (15) years, with the total not to exceed ninety percent (90%) of the employee's final average
monthly earnings. Employee Plan First Tier unclassified members accrued four percent (4%) of their final
average monthly earnings for creditable service before October 18, 1992 and three percent (3%) per year
of creditable service after October 18, 1992, with the total not to exceed eighty percent (80%) of their final
average monthly earnings.
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Classified and unclassified members under the Employee Plan Second Tier are eligible for normal
retirement at age fifty-five (55) and five (5) years of creditable service and are entitled to benefits of three
percent (3%) of their final average monthly earnings multiplied by the employee's number of years of
creditable service, subject to a maximum of eighty percent (80%) of such employee's final average monthly
earnings.
Classified and unclassified members under the Employee Plan Third Tier are eligible for normal
retirement at age fifty-five (55) and at least thirty (30) years of creditable service, or age sixty-two (62) and
at least five (5) years of creditable service and are entitled to benefits of two and one-half percent (2.5%)
of their final average monthly earnings multiplied by the employee's number of years of creditable service,
subject to a maximum of eighty percent (80%) of such employee's final average monthly earnings. For
elected officials of the City, the City Manager or the City Attorney, the benefit is four percent (4%) of their
final average monthly earnings for each year of creditable service as an elected official, city manager or
city attorney, plus the retirement benefit as defined above for any other period of City employment, subject
to a maximum eighty percent (80%) of such employee's final average monthly earnings.
Any Employee Plan Fast Tier member who terminates employment may either request a refund
of their own contributions, plus interest, or receive their accrued benefit beginning at age fifty (50), if at
least five (5) years of creditable service have been completed. Any Employee Plan Second Tier member
who terminates employment after five (5) years of creditable service may either request a refund of their
own contributions, plus interest, or receive their accrued benefit beginning at age fifty-five (55). Any
Employee Plan Third Tier member who terminates employment after five (5) years of creditable service
but prior to the normal or early retirement date shall be eligible to receive a normal retirement benefit at
age sixty-two (62).
A Deferred Retirement Option Plan ("DROP") for the Employee Plan was enacted by the City
Commission on January 28, 2009 pursuant to Ordinance 2009-3626. Under the DROP, first and second
tier members of the Employee Plan who have attained eligibility for normal retirement may continue
working with the City for up to three (3) years, while receiving a retirement benefit that is deposited into
a DROP account. Employee Plan Third Tier members may participate in a DROP account for up to five
(5) years. However, effective July 17, 2013, Employee Plan members of CWA who were hired prior to
October 27, 2010, and members of the Employee Plan not included in any bargaining unit who were hired
prior to September 10, 2010, may elect to retire for the purposes of DROP but continue employment with
the City for up to sixty (60) months and have their monthly retirement benefit paid into a DROP account
during the DROP period. Effective October 1, 2013, such benefit was also extended to Employee Plan
members of GSAF and, effective April 23, 2014, was extended to Employee Plan members of AFSCME
who were hired prior to September 30, 2010. The amount of the benefit is calculated as if the participant
had retired on the date of DROP commencement. Upon termination with the City, the accumulated value
of the DROP account is distributed to the participant and a member's creditable service, accrued benefit
and compensation calculation shall be frozen.
Employee Plan First Tier members and Employee Plan Second Tier members receive an annual
cost -of -living adjustment of two and one-half percent (2.5%). The cost -of -living adjustment is not payable
while members are in the DROP. For Employee Plan Third Tier members, the annual cost -of -living
adjustment is one and one-half percent (1.5%). As of September 30, 2022, there were one hundred forty-
one (141) members of the Employee Plan in the DROP and the value of the DROP investment was
$17,226,730, which is included in the Plan's net position. The DROP also allows for member loans.
Approximately $161,000 and $155,000 in DROP loans for the Employee Plan were outstanding as of
September 30, 2022 and September 30, 2021, respectively.
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Contributions to the Employee Plan. The City's policy is to contribute such amounts as are
necessary to maintain the actuarial soundness of the Employee Plan and to provide assets sufficient to meet
the benefits to be paid to the members of the Employee Plan. All fast tier members are required to
contribute twelve percent (12%) of their covered salary to the Employee Plan. All second and third tier
members are required to contribute ten percent (10%) of their covered salary to the Employee Plan.
For the Fiscal Year ended September 30, 2022, the City was required to make contributions of
$29,590,369 or 33.54% of covered payroll to the Employee Plan in accordance with actuarially determined
requirements computed through an actuarial valuation performed as of October 1, 2019. For the Fiscal
Year ended September 30, 2022, the employees contributed $9,285,205 and buybacks were $1,613,924.
[Remainder of page intentionally left blank]
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Net Pension Liabilitv. The City's net pension liability and related ratios for the Employee Plan
for the Fiscal Years ended September 30, 2019 through September 30, 2022 are set forth below.
Employee Plan Schedule of Changes in the
Employer's Net Pension Liability and Related Ratios
Fiscal Year Ended September 30
2022
2021
2020
2019
Total Pension Liability
Service Cost
$ 15,417,997
$ 15,577,246
$ 16,171,537
$ 15,232,372
Interest
67,381,190
67,095,944
65,045,122
63,015,047
Benefit changes
488,415
—
—
—
Differenee between Actual and Expected Experience
(1,635,336)
(3,398,414)
1,117,690
18,961
Assumption Changes"'
—
(8,618,033)
10,022,465
4,771,684
Benefit Payments
(54,280,486)
(52,250,292)
(51,014,104)
(49,726,168)
Refunds of Contributions
(1,398,325)
(1,177,837)
(1,571,361)
(1,381,297)
Net Change in Total Pension Liability
25,973,455
17,228,614
39,771,349
31,930,599
Total Pension Liability (Beginning of Year)
922,978,025
905,749,411
865,978,062
834,047,463
Total Pension Liability (End of Year) (a)
$948,951,480
$922,978,025
$905,749,411
$865,978,062
Plan Fiduciary Net Position
Contributions - Employer
$ 30,699,942
$ 31,475,030
$ 31,864,304
$ 3 t,892,485
Contributions - Employees (includes buybacks)
8,521,037
8,665,597
8,512,207
8,242,590
Net Investment Income
153,443,495
60,053,751
23,328,881
51,285,893
Benefit Payments
(54,280,486)
(52,250,292)
(51,014,104)
(49,726,168)
Refunds of Contributions
(1,398,325)
(1,177,837)
(1,571,361)
(1,381,297)
Administrative Expense
(697,962)
(808,094)
(827,919)
(730,118)
Other (Adjustment))
—
—
—
—
Net Change in Plan Fiduciary Net Position
136,287,701
45,958,155
10,292,008
39,583,385
Plan Fiduciary Net Position (Beginning of Year)
712,457,774
666,499,619
656,207,611
616,624,226
Plan Fiduciary Net Position (End of Year) (b)
$848,745,475
$712,457,774
$666,499,619
$656,207,611
City's Net Pension Liability (End of Year) (a) - (b)
$100,206,005
$210,520,251
$239,249,792
$209,770,451
Plan Fiduciary Net Position as a Percentage
89.44%
77.19%
73.59%
75.78%
of the Total Pension Liability
Covered Employee Payroll
$ 98,446,616
$ 88,141,166
$ 84,980,438
$ 85,003,174
City's Net Pension Liability as a Percentage
113.30%
238.84%
281.54%
246.78%
of Covered -Employee Payroll
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report for the Fiscal
Year ended September
30, 2022.
Footnote for the immediately preceding table is provided on the nest page.
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(1) For a detailed description of the changes made in the assumptions for the Employee Plan, reference is made
to the source of the table set forth above and to the City of Miami Beach Employees' Retirement Plan
Actuarial Valuation Report, prepared by Gabriel, Roeder, Smith and Company, for each of the years
indicated. A copy of such documents may be obtained from the City by contacting the City's Chief Financial
Officer, 1700 Convention Center Drive, Miami Beach, Florida 33139, Telephone number: (305) 673-7466,
Facsimile number: (305) 673-7795, Email address: www.miamibeachfl.gov/finance.
Police and Firefighters' Retirement Plan
Plan Description. The pension fund for police officers and firefighters employed by the City (the
"Police and Firefighters' Plan") is officially named the City Pension Fund for Firefighters and Police
Officers in the City of Miami Beach. The Police and Firefighters' Plan is a defined benefit pension plan
covering substantially all police officers and firefighters of the City, as established by Chapter 23414, Laws
of Florida, Special Acts of 1945, as amended. Members of the Police and Firefighters' Plan are divided
into five (5) tiers, based on whether they were hired prior to July 14, 2010 ("Police and Firefighters' Plan
Tier One"), on or after July 14, 2010 but prior to September 30, 2013 ("Police and Firefighters' Plan Tier
Two"), on or after September 30, 2013 but prior to June 8, 2016 for firefighters and prior to July 20, 2016
for police officers ("Police and Firefighters' Plan Tier Three"), on or after June 8, 2016 but prior to May
8, 2019 for firefighters and on or after July 20, 2016 but prior to July 31, 2019 for police officers ("Police
and Firefighters' Plan Tier Four"), or on or after May 8, 2019 for firefighters and on or after July 31, 2019
for police officers ("Police and Firefighters' Plan Tier Five").
Membership in the Police and Firefighters' Plan consisted of the following as of September 30,
2022, the date of the latest accrual valuation:
Police and Firefighters' Plan Membership
Active members
494
Deferred vested members
27
Retired members
a. Service
770*
b. Disabled
51
821 821
Total members
1,342
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report for the Fiscal Year
ended September 30, 2022.
* Includes members of the Police and Firefighters' Plan who are enrolled in DROP.
Plan Benefits. Police and Firefighters' Plan Tier One members who were eligible to retire prior
to September 30, 2013 may retire on a service retirement pension upon the attainment of age fifty (50) or,
if earlier, the date when age and length of creditable service equals to at least seventy (70) years. Police
and Firefighters' Plan Tier One members eligible to retire on or after September 30, 2013 may retire on
a service retirement pension upon the attainment of age fifty (50) or, if earlier, the date when the member
attains the age of forty-seven (47) and the length of creditable service equals to at least seventy (70) years.
Upon retirement, Police and Firefighters' Plan Tier One members who were eligible to retire prior
to September 30, 2013 will receive a monthly pension, payable for life, equal to three percent (3%) of the
member's average monthly salary, as defined in the Police and Firefighters' Plan ordinance, for each of
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the first fifteen (15) years of creditable service and four percent (4%) of the member's average monthly
salary for each year of creditable service in excess of fifteen (15) years; provided, however, that the pension
benefit shall not exceed ninety percent (90%) of the member's average monthly salary. Police and
Firefighters' Plan Tier One members eligible to retire on or after September 30, 2013 will receive a
monthly pension, payable for life, equal to three percent (3%) of the member's average monthly salary, as
defined in the Police and Firefighters' Plan ordinance, for each of the first twenty (20) years of creditable
service and four percent (4%) of the member's average monthly salary for each year of creditable service
in excess of twenty (20) years; provided, however, that the pension benefit does not exceed eighty-five
percent (85%) of the member's average monthly salary. All Police and Firefighters' Plan members and
beneficiaries receiving a monthly pension as of September 30, 2010 will receive a 2.5% increase in benefits
on October 1 of each year. Members who retire on or after September 30, 2010 will receive a 2.5%
increase in benefits annually on the anniversary date of the member's retirement.
Any Police and Firefighters' Plan Tier Two member may retire on a service retirement pension
upon the attainment of age fifty (50) or, if earlier, the date when the member attains age forty-eight (48)
and the length of creditable service equals to at least seventy (70) years. Upon retirement, a Police and
Firefighters' Plan Tier Two member will receive a monthly pension, payable for life, equal to three percent
(3%) of the member's average monthly salary, as defined in the Police and Firefighters' Plan ordinance,
for each of the first twenty (20) years of creditable service and four percent (4%) of the member's average
monthly salary for each year of creditable service in excess of twenty (20) years; provided, however, that
the pension benefit shall not exceed eighty-five percent (85%) of the member's average monthly salary.
The average monthly salary of a Police and Firefighters' Plan Tier Two member is computed based on such
member's salary for the three (3) highest paid years prior to the date of retirement or the average of the
last three (3) paid years to such member prior to the date of retirement, whichever produces the greater
benefit after consideration of overtime limitations. All Police and Firefighters' Plan Tier Two retirees and
beneficiaries will receive a 1.5% increase in benefits annually on the anniversary date of the member's
retirement.
The benefits for Police and Firefighters' Plan Tier Three members are the same as the ones
described in the immediately preceding paragraph for Police and Firefighters' Plan Tier Two members,
except the average monthly salary of a Police and Firefighters' Plan Tier Three member is computed based
on such member's salary for the five (5) highest paid years prior to the date of retirement or the average
of the last three (3) paid years to such member prior to the date of retirement, whichever produces the
greater benefit after consideration of overtime limitations.
The benefits for Police and Firefighters' Plan Tier Four members and Police and Firefighters' Plan
Tier Five members are the same as the ones described in the immediately preceding paragraph for Police
and Firefighters' Plan Tier Three members, except (i) the average monthly salary of a Police and
Firefighters' Plan Tier Four member and of a Police and Firefighters' Plan Tier Five member is computed
based on such member's average of the five (5) highest paid years prior to the date of retirement, taking
into consideration the overtime limit, and (ii) the normal retirement eligibility is the earlier of the
attainment of age 52, with five (5) years of creditable service or the length of creditable service equals to
at least seventy (70) years, but the member must have at least attained the age of 48.
Any member of the Police and Firefighters' Plan who becomes totally and permanently disabled
at any time as a result of illness or injury suffered in the line of duty may be retired on an accidental
disability pension. For a service connected disability, the minimum pension payable is eighty-five percent
(85%) of the member's monthly salary at the time of disability retirement, less any offset for worker's
compensation. Any Police and Firefighters' Plan member who becomes totally or permanently disabled
after five (5) years of creditable service as a result of illness or injury not suffered in the line of duty may
be retired on an ordinary disability retirement pension. Upon disability retirement, a Police and
Firefighters' Plan member receives a monthly pension equal to such member's service retirement benefits.
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For a non -service connected disability, the pension benefit is the accrued benefit after five (5) years of the
member's creditable service. The Police and Firefighters' Plan also provides death benefits for
beneficiaries or members for service connected and non -service connected death.
If a Police and Firefighters' Plan member resigns or is lawfully discharged before retirement, such
member's contributions, with three percent (3%) interest per annum, are returned to that member. The
Police and Firefighters' Plan also provides a special provision for vested benefits for members who
terminate their employment after five (5) years of service. In the alternative and in lieu of the normal form
of benefit, the Police and Firefighters' Plan member may, at any time prior to retirement, elect to receive
a lifetime retirement benefit with one hundred twenty (120) monthly payments guaranteed. If the Police
and Firefighters' Plan member should die before one hundred twenty (120) monthly payments are made,
benefits will continue to be paid to the member's designated beneficiary for the balance of the one hundred
twenty (120) month period. If the retired Police and Firefighters' Plan member is living after one hundred
twenty (120) monthly payments are made, the payments shall be continued for the member's remaining
lifetime. In case of termination of the Police and Firefighters' Plan, benefits accrued to members of the
Police and Firefighters' Plan are not subject to forfeit.
An active Police and Firefighters' member may enter into a DROP on the first day of any month
after becoming eligible to retire. Police and Firefighters' Plan Tier One members who entered the DROP
on or before September 30, 2015, are eligible to participate for a period not to exceed seventy-two (72)
months. Police and Firefighters' Plan members who entered the DROP on or after October 1, 2015 are
eligible to participate for a period not to exceed ninety-six (96) months. All Police and Firefighters' Plan
Tier One members receive a 2.5% cost of living adjustment ("COLA") increase in benefits annually on the
anniversary date of the member's entry into the DROP, with a few annual exceptions provided in the Police
and Firefighters' Plan. All other Police and Firefighters' Plan tier members receive a 1.5% COLA increase
in benefits annually on the anniversary date of the member's entry into the DROP, with a few annual
exceptions provided in the Police and Firefighters' Plan.
Once a Police and Firefighters' Plan member enters the DROP, their monthly retirement benefit
is fixed, and their monthly benefit is paid into their DROP account. Upon termination of employment, the
balance in the member's DROP account, including earnings, is payable to them and they will begin to
receive their normal retirement benefit.
At September 30, 2022, the total amount of the DROP payable, $38,787,144, represents the balance
of the self -directed participants as all the participants are now in the self -directed DROP.
Contributions to the Police and Fire fighters ' Plan. The City is required to contribute an actuarially
determined amount to the Police and Firefighters' Plan that, when combined with members' contributions,
will fully provide for all benefits as they become payable. All Police and Firefighters' Plan Tier One
members and Police and Firefighters' Plan Tier Two members are required to contribute ten percent (10%)
of their salary to the Police and Firefighters' Plan, while all Police and Firefighters' Plan Tier Three
members, Police and Firefighters' Plan Tier Four members, and Police and Firefighters' Plan Tier Five
members are required to contribute ten and one-half percent (10.5%) of their salary to the Police and
Firefighters' Plan. The actual contribution from the City and from the State for active employees for the
Fiscal Year ended September 30, 2022, was $45,416,048 and $120,549, respectively. Covered payroll,
excluding DROP members, was $66,037,375. The contribution required from the City and the State for
the Fiscal Year ended September 30, 2022 was actuarially determined by the October 1, 2020 valuation
to be $45,416,048.
Net Pension Liability. The City's net pension liability and related ratios for the Police and
Firefighters' Plan for the Fiscal Years ended September 30, 2019 through September 30, 2022 are set forth
in the table on the following page.
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Police and Firefighters' Plan
Schedule of Changes in the Employer's
Net Pension Liability and Related Ratios
Fiscal Year Ended September 30
2022
2021
2020
2019
Total Pension Liability
Service Cost
$ 22,635,278
$ 22,110,056
$ 20,212,389
$ 18,462,961
Interest
101,830,772
95,945,797
94,542,878
91,544,984
Changes of Benefit Terms"'
—
922,043
—
—
Difference between Actual and Expected Experience
1,590,742
(7,950,229)
7,883,134
11,814,591
Assumption Changes")
19,051,525
(16,924,385)
7,294,349
6,951,571
Benefit Payments (including Refunds of Contributions)
(77,770,947)
(69,388,221)
(68,466,325)
(75,460,821)
Net Change in Total Pension Liability
67,337,370
24,715,061
61,466,425
53,313,286
Total Pension Liability (Beginning of Year)
1,315,349,537
1,290,634,476
1,229,168,051
1,175,854,765
Total Pension Liability (End of Year) (a)
$1,382,686,907
$1,315,349,537
$1,290,634,476
$1,229,168,051
Plan Fiduciary Net Position
Contributions - City and State
$ 43,445,459
$ 42,779,004
$ 39,747,149
$ 37,639,937
Contributions - Employees
16,200,745
7,133,168
6,972,214
6,593,715
Net Investment Income
197,475,559
85,054,923
39,053,408
82,094,851
Benefit Payments (including Refunds of Contributions)
(77,770,947)
(69,388,221)
(68,466,325)
(75,460,821)
Administrative Expense
(958,325)
(900,251)
(855,761)
(802,106)
Net Change in Plan Fiduciary Net Position
178,392,491
64,678,623
16,450,685
50,065,576
Plan Fiduciary Net Position (Beginning of Year)
1,005,632,284
940,953,661
924,502,976
874,437,400
Plan Fiduciary Net Position (End of Year) (b)
$1,184,024,775
$1,005,632,284
$940,953.661
$924,502,976
City's Net Pension Liability (End of Year) (a) - (b) $ 198,662,132 $ 309,717,253 $349,680,815 $304,665,075
Plan Fiduciary Net Position as a Percentage 85.63% 76.45% 72.91% 75.21%
of the Total Pension Liability
Covered Employee Payroll $ 66,037,375 $ 66,272,092 $ 66,441,610 $ 64,181,403
City's Net Pension Liability as a Percentage 300.83% 467.34% 526.30% 474.69%
of Covered -Employee Payroll
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report for the Fiscal Year ended September 30, 2022.
Footnote for the immediately preceding table is provided on the next page.
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(1) For a detailed description of the changes made in the benefits and assumptions for the Police and
Firefighters' Plan, reference is made to the source of the table set forth above and to the City Pension Fund
for Firefighters and Police Officers in the City of Miami Beach Actuarial Valuation Report, prepared by
Gabriel, Roeder, Smith and Company, for each of the years indicated. A copy of such documents may be
obtained from the City by contacting the City's Chief Financial Officer, 1700 Convention Center Drive,
Miami Beach, Florida 33139, Telephone number: (305) 673-7466, Facsimile number: (305) 673-7795,
Email address: www.miamibeachfl.gov/finance.
Other Retirement and Compensation Plans
Florida's Federal -State Social Security Agreement
Pursuant to Modification 29 of the Florida State Social Security Agreement, effective January 1,
1955, the City does not participate in the Federal Old -Age and Survivors Insurance System embodied in
the federal Social Security Act. Instead, the City provides eligible employees a comprehensive defined
benefit pension plan. Contributions pursuant to the federal Social Security Act for Fiscal Years 2022 and
2021 would have been $12,665,414 and $12,074,473, respectively. The City, however, does participate
in the hospital insurance tax, also known as Medicare, and withholds taxes accordingly.
Firefighters and Police Relief and Pension Funds
The City's firefighters and police officers are members of two (2) separate non-contributory money
purchase benefit plans established under the provisions of Florida Statutes, Chapters 175 and 185,
respectively. These plans are funded solely from proceeds of certain excise taxes levied by the City and
imposed upon property and casualty insurance coverage within City limits. The excise taxes, which are
collected from insurers by the State, are remitted to the Plans' Boards of Trustees. The City is under no
obligation to make any further contributions to the plans.
The excise taxes received from the State and remitted to the plans for the Fiscal Year ended
September 30, 2022 were $1,373,339 for firefighters and $824,235 for police officers. These payments
were recorded on the City's books as revenues and expenditures during the Fiscal Year. Plan benefits are
allocated to participants based upon their service during the year and the level of funding received during
the year. Participants are fully vested after ten (10) years of service with no benefits vested prior to ten
(10) years of service, except those prior to June 1983. All benefits are paid in a lump sum format, except
for the Police Relief Funds, where participants may also elect not to withdraw, or to partially withdraw,
his or her retirement funds.
Defined Contribution Retirement Plan - Section 401(a)
The City has a defined contribution retirement plan that was created in accordance with Section
401(a) of the Code (the "Section 401(a) Defined Contribution Plan"). The Section 401(a) Defined
Contribution Plan provides retirement and other related benefits for eligible employees as an option to the
other retirement systems sponsored by the City.
Any person employed on or after October 18, 1992, in the unclassified service of the City, had the
right to select the Section 401(a) Defined Contribution Plan as an optional retirement plan to the
Unclassified Employees and Elected Officials Retirement System (the "Unclassified Employee System").
At the time of the creation of the Section 401(a) Defined Contribution Plan, employees of the City who
were members of the Unclassified Employee System had the irrevocable right to elect to transfer
membership from the Unclassified Employee System to the Section 401(a) Defined Contribution Plan for
a limited period of time. Effective March 19, 2006, the Section 401(a) Defined Contribution Plan is no
longer offered to new employees of the City. Employees participating in the Section 401(a) Defined
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Contribution Plan prior to March 19, 2006 were given the option to transfer membership to the Unclassified
Employee System, which was merged into the Employee Plan. See "PENSION AND OTHER POST
EMPLOYMENT BENEFITS - Defined Benefit Plans - Employees' Retirement Plan" herein.
The Section 401(a) Defined Contribution Plan is administrated by a Board of Trustees, which has
the general responsibility for the Plan's proper operation and management. The Section 401(a) Defined
Contribution Plan complies with the provisions of section 401(a) of the Code and may be amended by the
City Commission. The City has no fiduciary responsibility for the Section 401(a) Defined Contribution
Plan. Consequently, amounts accrued for benefits are not recorded in the fiduciary fund.
Employees in the Section 401(a) Defined Contribution Plan hired prior to February 21, 1994 are
required to contribute ten percent (10%) of their salary while employees hired after February 21, 1994 are
required to contribute eight percent (8%) of their salary. The City matches the employee's contribution
one hundred percent (100%). The Section 401(a) Defined Contribution Plan of each employee is the
immediate property of the employee. Employees have a choice of plan administrators and are responsible
for the investment of their funds amongst choices of investment vehicles offered by their selected plan
administrator.
Defined Contribution Plan information, as of and for the Fiscal Year ended September 30, 2022,
is as follows:
Defined Contribution Plan Information
Members in Defined Contribution Plan 14
City's contribution $81,255
Percentage of covered payroll 7.94%
Employees' contribution $84,047
Percentage of covered payroll 8.21 %
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report
for the Fiscal Year ended September 30, 2022.
Defined Contribution Retirement Plan - Section 457
On July 12, 1995 the City Commission adopted Ordinance No. 95-3002A to create a deferred
compensation plan for all employees of the City who work less than thirty (30) hours a week, in
accordance with Section 457 of the Code (the "Section 457 Defined Contribution Plan"). The Section 457
Defined Contribution Plan, administered by a third party, is available to all part-time, seasonal, and
temporary employees as an alternative to the Federal Social Security 6.2% employer/employee matching
contributions. Upon commencement of employment, the City sets up an individual retirement account on
behalf of the part-time, seasonal or temporary employee with the administrator of the Section 457 Defined
Contribution Plan. The employee contributes 7.5% of their annual earning into their individual account
and the City contributes 2.5% into the individual account of the employee, bringing the total contribution
by both parties to 10%. In accordance with the provisions of the Code, the total contribution rate may not
fall below 7.5%. The City's aggregate contribution to the Section 457 Defined Contribution Plan for the
Fiscal Year ended September 30, 2022 was $131,214, with an outstanding liability at the end of Fiscal Year
2022 of $2,206. There were no forfeitures for the Fiscal Ycar ended September 30, 2022.
4,
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Other Post Employment Benefits
Plan Description
In accordance with Section 112.0801, Florida Statutes, the City is required to permit eligible
retirees and their eligible dependents to participate in the City's health insurance program at a cost to the
retirees that is no greater than the cost at which coverage is available for active employees. Although not
required by law, the City pays a portion of such cost of participation for its retirees. The City also provides
life insurance to the retirees.
In June 2015, the Governmental Accounting Standard's Board ("GASB") issued Statement No. 75,
"Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions" ("GASB 75").
GASB 75 replaces the requirements of GASB Statement No. 45, "Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions," as amended, and GASB Statement No. 57,
"OPEB Measurements by Agent Employers and Agent Multiple -Employer Plans." The objective of GASB
75 is to improve the financial reporting by state and local governments for postemployment benefits other
than pensions ("OPEB") and improve information for OPEB that is provided by other entities. The
provisions of GASB 75 are effective beginning with for the financial statements of the City for the Fiscal
Year ended September 30, 2018. While GASB 75 requires recognition and disclosure of the unfunded
OPEB liability, there is no requirement that the liability of such plan be funded. The City's single
employer OPEB Plan (the "OPEB Plan") currently provides the following post employment benefits:
(a) Health and Dental Insurance - Employees of the City hired prior to March 18, 2006
are eligible to receive a fifty percent (50%) health insurance contribution of the total premium cost.
At age sixty-five (65), if the retiree is eligible for Medicare Part B, the City contributes fifty
percent (50%) of the Medicare Part B payment. Employees hired after March 18, 2006, after
vesting in City's retirement plans, are eligible to receive an offset to the retiree premium equal to
$10 per year of credible service, up to a maximum of $250 per month until age sixty-five (65) and
$5 per year of credible service up to a maximum of $125, thereafter.
(b) Life Insurance - Employees of the City are eligible to receive a life insurance
benefit of $1,000 towards the cost of such insurance.
As of September 30, 2008, the City established an OPEB Trust (the "OPEB Trust") and began
funding its OPEB obligation. Stand alone financial statements for the OPEB Trust are not prepared. As
of September 30, 2022, the date of the most recent actuarial valuation, OPEB Plan participation consisted
of the following:
OPEB Plan Participation
Active OPEB Plan Participants 1,679
Retirees receiving benefit payments 1,171
Total 2.850
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report
for the Fiscal Year ended September 30, 2022.
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Fundins of OPEB Plan
The City has the authority to establish and amend the funding policy of the OPEB Plan. For the
Fiscal Year ended September 30, 2022, the City paid $15,684,233 in OPEB benefits on a pay -as -go basis.
The City's net OPEB obligation as of September 30, 2022 was $364,192,406. The City intends to consider
future OPEB Trust contributions each year during the annual budget process. However, no OPEB Trust
contributions are legally or contractually required.
The annual cost (expense) of the OPEB Plan is calculated based on the annual required
contribution, an amount actuarially determined in accordance with the parameters of GASB 75. The annual
required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover
the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed thirty
(30) years.
The City's net OPEB liability and related ratios for the Fiscal Years ended September 30, 2019
through September 30, 2022 are set forth in the table below.
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OPEB Schedule of Changes in the City's
Net OPEB Liability and Related Ratios
Fiscal Year Ended September 30
2022
2021
2020
2019
Total OPEB Liability
Service Cost
$ 8,313,059
$ 9,033,753
$ 9,129,624
$ 4,235,229
Interest
12,930,877
13,167,573
15,167,033
14,606,184
Difference between Actual and Expected Experience
(589,496)
(2,770,486)
—
—
Assumption Changes"'
(104,580,036)
11,341,135
70,563,191
212,252,691
Benefit Payments
(15,684,233)
(14,439,762(8,886,242)
(13,507,000)
Net Change in Total OPEB Liability
(99,609,829)
16,332,206
85,973,606
217,587,104
Total OPEB Liability (Beginning of Year)
504,019,204
487,686,998
401,713,392
184,126,288
Total OPEB Liability (End of Year) (a)
$404,409,375
$504,019,204
$487,68(i,998
$401,713,392
Plan Fiduciary Net Position
Contributions - City
$ 16,584,233
$ 16,270,068
$ 9,373,242
$ 13,996,031
Net Investment Income
(9,521,801)
6,865,781
4,268,202
886,546
Benefit Payments
(15,684,233)
(14,439,769)
(8,886,242)
(13,507,000)
Administrative Expense
(125,260)
(130,422)
(57,699)
8( 8,918)
Net Change in Plan Fiduciary Net Position
(8,747,061)
8,565,658
4,697,503
1,286,659
Plan Fiduciary Net Position (Beginning of Year)
48,964,030
40,398,372
35,700,869
34,414,210
Plan Fiduciary Net Position (End of Year) (b)
$ 40,216,969
$ 48,964,030
$ 40.39�8,372
$ 35,700,969
City's Net OPEB Liability (End of Year) (a) - (b)
$364,192,406
$455,055,174
$447,288,626
$366,012,523
Plan Fiduciary Net Position as a Percentage
9 94%
9 71%
8 28%
8.89%
of the Total OPEB Liability
Covered Employee Payroll("
$130,779,384
$134,165,565
$156,013,000
$150,737,233
City's Net OPEB Liability as a Percentage
278.48%
339.17%
286.70%
242.81%
of Covered -Employee Payroll
Source: City of Miami Beach, Florida Annual Comprehensive Financial Report for the Fiscal Year ended September 30, 2022.
(1) For a detailed description of the changes made in the assumptions for OPEB, reference is made to the source of the table set
forth above and the actuarial reports relating to the OPEB Plan, a copy of which may be obtained from the City by contacting
the City's Chief Financial Officer, 1700 Convention Center Drive, Miami Beach, Florida 33139, Telephone number: (305)
673-7466, Facsimile number: (305) 673-7795, Email address: w-ww.miamibeachfl.gov/finance.
(2) Employees do not contribute to OPEB.
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For more detailed information concerning the Employee Plan, the Police and Firefighters' Plan,
the City's other retirement and contribution plans and the OPEB Plan, including actuarial valuations,
assumptions about future events and contact information for the acquisition of separate audited financial
statements for each plan (except the OPEB Plan, which does not have separate audited financial
statements), see "APPENDIX C - Excerpts from Annual Comprehensive Financial Report of the City of
Miami Beach, Florida for the Fiscal Year ended September 30, 2022" and, in particular, Note 16 (and, with
respect to the OPEB Plan, Note 17 and, with respect to the Section 457 Defined Contribution Plan, Note
(15) of the Notes to the Financial Statements and the information provided in the Required Supplementary
Information.
TAX MATTERS
General
In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law: (i) interest
on the Series 2026 Bonds is excluded from gross income for federal income tax purposes under Section
103 of the Internal Revenue Code of 1986, as amended (the "Code"), and is not an item of tax preference
for purposes of the federal alternative minimum tax imposed on individuals, and (ii) the Series 2026 Bonds
and the income thereon are exempt from taxation under the laws of the State of Florida, except estate taxes
imposed by Chapter 198, Florida Statutes, as amended, and net income and franchise taxes imposed by
Chapter 220, Florida Statutes, as amended. Bond Counsel expresses no opinion as to any other tax
consequences regarding the Series 2026 Bonds.
The opinion on federal tax matters will be based on and will assume the accuracy of certain
representations and certifications, and continuing compliance with certain covenants, of the City contained
in the transcript of proceedings and that are intended to evidence and assure the foregoing, including that
the Series 2026 Bonds are and will remain obligations the interest on which is excluded from gross income
for federal income tax purposes. Bond Counsel will not independently verify the accuracy of the City's
representations and certifications or the continuing compliance with the City's covenants.
The opinion of Bond Counsel is based on current legal authority and covers certain matters not
directly addressed by such authority. It represents Bond Counsel's legal judgment as to exclusion of
interest on the Series 2026 Bonds from gross income for federal income tax purposes but is not a guaranty
of that conclusion. The opinion is not binding on the Internal Revenue Service (the "IRS") or any court.
Bond Counsel expresses no opinion about (i) the effect of future changes in the Code and the applicable
regulations under the Code or (ii) the interpretation and the enforcement of the Code or those regulations
by the IRS.
The Code prescribes a number of qualifications and conditions for the interest on state and local
government obligations to be and to remain excluded from gross income for federal income tax purposes,
some of which require future or continued compliance after issuance of the obligations. Noncompliance
with these requirements by the City may cause loss of such status and result in the interest on the Series
2026 Bonds being included in gross income for federal income tax purposes retroactively to the date of
issuance of the Series 2026 Bonds. The City has covenanted to take the actions required of it for the
interest on the Series 2026 Bonds to be and to remain excluded from gross income for federal income tax
purposes, and not to take any actions that would adversely affect that exclusion. After the date of issuance
of the Series 2026 Bonds, Bond Counsel will not undertake to determine (or to so inform any person)
whether any actions taken or not taken, or any events occurring or not occurring, or any other matters
coming to Bond Counsel's attention, may adversely affect the exclusion from gross income for federal
income tax purposes of interest on the Series 2026 Bonds or the market value of the Series 2026 Bonds.
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Interest on the Series 2026 Bonds may be subject: (1) to a federal branch profits tax imposed on
certain foreign corporations doing business in the United States; (2) to a federal tax imposed on excess net
passive income of certain S corporations; and (3) to the alternative minimum tax imposed under Section
55(b) of the Code on "applicable corporations" (within the meaning of Section 59(k) of the Code). Under
the Code, the exclusion of interest from gross income for federal income tax purposes may have certain
adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers,
including financial institutions, certain insurance companies, recipients of Social Security and Railroad
Retirement benefits, those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt
obligations, and individuals otherwise eligible for the earned income tax credit. The applicability and
extent of these and other tax consequences will depend upon the particular tax status or other tax items of
the owner of the Series 2026 Bonds. Bond Counsel will express no opinion regarding those consequences.
Payments of interest on tax-exempt obligations, including the Series 2026 Bonds, are generally
subject to IRS Form 1099-INT information reporting requirements. If a Series 2026 Bond owner is subject
to backup withholding under those requirements, then payments of interest will also be subject to backup
withholding. Those requirements do not affect the exclusion of such interest from gross income for federal
income tax purposes.
Bond Counsel's engagement with respect to the Series 2026 Bonds ends with the issuance of the
Series 2026 Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City or
the owners of the Series 2026 Bonds regarding the tax status of interest thereon in the event of an audit
examination by the IRS. The IRS has a program to audit tax-exempt obligations to determine whether the
interest thereon is includible in gross income for federal income tax purposes. If the IRS does audit the
Series 2026 Bonds, under current IRS procedures, the IRS will treat the City as the taxpayer and the
beneficial owners of the Series 2026 Bonds will have only limited rights, if any, to obtain and participate
in judicial review of such audit. Any action of the IRS, including but not limited to selection of the Series
2026 Bonds for audit, or the course or result of such audit, or an audit of other obligations presenting
similar tax issues, may affect the market value of the Series 2026 Bonds.
Prospective purchasers of the Series 2026 Bonds upon their original issuance at prices other than
the respective prices indicated on the inside cover page of this Official Statement, and prospective
purchasers of the Series 2026 Bonds at other than their original issuance, should consult their own tax
advisors regarding other tax considerations such as the consequences of market discount, as to all of which
Bond Counsel expresses no opinion.
Risk of Future Legislative Changes and/or Court Decisions
Legislation affecting tax-exempt obligations is regularly considered by the United States Congress
and may also be considered by the State legislature. Court proceedings may also be filed, the outcome of
which could modify the tax treatment of obligations such as the Series 2026 Bonds. There can be no
assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Series
2026 Bonds will not have an adverse effect on the tax status of interest or other income on the Series 2026
Bonds or the market value or marketability of the Series 2026 Bonds. These adverse effects could result,
for example, from changes to federal or state income tax rates, changes in the structure of federal or state
income taxes (including replacement with another type of tax), or repeal (or reduction in the benefit) of
the exclusion of interest on the Series 2026 Bonds from gross income for federal or state income tax
purposes for all or certain taxpayers.
For example, federal tax legislation that was enacted on December 22, 2017 reduced corporate tax
rates, modified individual tax rates, eliminated many deductions, repealed the corporate alternative
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minimum tax that was in effect at that time, and eliminated the tax-exempt advance refunding of
tax-exempt bonds and tax -advantaged bonds, among other things. Additionally, investors in the Series
2026 Bonds should be aware that future legislative actions might increase, reduce or otherwise change
(including retroactively) the financial benefits and the treatment of all or a portion of the interest on the
Series 2026 Bonds for federal income tax purposes for all or certain taxpayers. In all such events, the
market value of the Series 2026 Bonds may be affected and the ability of holders to sell their Series 2026
Bonds in the secondary market may be reduced.
Investors should consult their own financial and tax advisors to analyze the importance of these
risk,,.
Original Issue Discount and Original Issue Premium
Certain of the Series 2026 Bonds ("Discount Series 2026 Bonds") may be offered and sold to the
public at an original issue discount ("OID"). OH) is the excess of the stated redemption price at maturity
(the principal amount) over the "issue price" of a Discount Series 2026 Bond. The issue price of a
Discount Series 2026 Bond is the initial offering price to the public (other than to bond houses, brokers
or similar persons acting in the capacity of underwriters or wholesalers) at which a substantial amount of
the Discount Series 2026 Bonds of the same maturity is sold pursuant to that offering. For federal income
tax purposes, OID accrues to the owner of a Discount Series 2026 Bond over the period to maturity based
on the constant yield method, compounded semiannually (or over a shorter permitted compounding interval
selected by the owner). The portion of OID that accrues during the period of ownership of a Discount
Series 2026 Bond (i) is interest excluded from the owner's gross income for federal income tax purposes
to the same extent, and subject to the same considerations discussed above, as other interest on the Series
2026 Bonds, and (ii) is added to the owner's tax basis for purposes of determining gain or loss on the
maturity, redemption, sale or other disposition of that Discount Series 2026 Bond. A purchaser of a
Discount Series 2026 Bond in the initial public offering at the issue price (described above) for that
Discount Series 2026 Bond who holds that Discount Series 2026 Bond to maturity will realize no gain or
loss upon the retirement of that Discount Series 2026 Bond.
Certain of the Series 2026 Bonds ("Premium Series 2026 Bonds") may be offered and sold to the
public at a price in excess of their stated redemption price at maturity (the principal amount). That excess
constitutes bond premium. For federal income tax purposes, bond premium is amortized over the period
to maturity of a Premium Series 2026 Bond, based on the yield to maturity of that Premium Series 2026
Bond (or, in the case of a Premium Series 2026 Bond callable prior to its stated maturity, the amortization
period and yield may be required to be determined on the basis of an earlier call date that results in the
lowest yield on that Premium Series 2026 Bond), compounded semiannually. No portion of that bond
premium is deductible by the owner of a Premium Series 2026 Bond. For purposes of determining the
owner's gain or loss on the sale, redemption (including redemption at maturity) or other disposition of a
Premium Series 2026 Bond, the owner's tax basis in the Premium Series 2026 Bond is reduced by the
amount of bond premium that is amortized during the period of ownership. As a result, an owner may
realize taxable gain for federal income tax purposes from the sale or other disposition of a Premium Series
2026 Bond for an amount equal to or less than the amount paid by the owner for that Premium Series 2026
Bond. A purchaser of a Premium Series 2026 Bond in the initial public offering who holds that Premium
Series 2026 Bond to maturity (or, in the case of a callable Premium Series 2026 Bond, to its earlier call
date that results in the lowest yield on that Premium Series 2026 Bond) will realize no gain or loss upon
the retirement of that Premium Series 2026 Bond.
Owners of Discount Series 2026 Bonds and Premium Series 2026 Bonds should consult their
own tax advisors as to the determination for federal income tax purposes of the existence of OLD or
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bond premium, the determination for federal income tax purposes of the amount of OID or bond
pren►iun► properly accruable or amortizable in any period with respect to the Discount Series 2026 Bonds
or Premium Series 2026 Bonds, other federal tax consequences in respect of OID and bond premium,
and the treatment of OID and bond premium for purposes of state and local taxes on, or based on,
income.
FINANCIAL STATEMENTS
[WILL BE UPDATED AFTER RELEASE OF FISCAL YEAR 2025 AUDIT]
Excerpts from the Comprehensive Annual Financial Report of the City of Miami Beach, Florida
for the Fiscal Year ended September 30, 2024 and the report of RSM US LLP, independent certified public
accountants ("RSM US"), in connection therewith, dated June 23, 2025, are included in APPENDIX B to
this Official Statement as part of the public records of the City. Such excerpts and report contain
information relating to the City and the Resort Tax Revenues. A full copy of such reports is available on
the City's website at:
https•//w\� \� miamibeachfl gov/wp-content/uploads/2025/06/City-of-Miami-Beach-ACFR-Final-Issued-v
2.pdf.
The consent of RSM US was not requested for the reproduction of its audit report in this Official
Statement. The auditor has performed no services in connection with the preparation of this Official
Statement and is not associated with the offering of the Series 2026 Bonds.
CONTINUING DISCLOSURE
The City will covenant for the benefit of the holders of the Series 2026 Bonds to provide certain
financial information and operating data relating to the City not later than two hundred forty (240) days
following the end of each Fiscal Year, commencing with the Fiscal Year ending September 30, 2026 (the
"Annual Report"), and to provide, or cause to be provided, notices of the occurrence of certain enumerated
events. The Annual Report and notices of events will be filed with the Municipal Securities Rulemaking
Board (the "MSRB"). Digital Assurance Certification LLC ("DAC") will act as the initial disclosure
dissemination agent for the City. The specific nature of the information to be contained in the Annual
Report and the notices of events is contained in "APPENDIX F - Form of Disclosure Dissemination Agent
Agreement." These covenants have been made in order to assist the Underwriters in complying with Rule
15c2-12 of the Securities and Exchange Commission (the "SEC").
Within the last five (5) years the City has complied in all material respects with its previous
undertakings made with respect to SEC Rule 15c2-12(b)(5). Any failure to comply with the provisions
of the Disclosure Dissemination Agent Agreement relating to the Series 2026 Bonds shall not constitute
a default under the Bond Resolution and any failure of the City to comply with its previous continuing
disclosure undertakings are not defaults under the authorizing resolutions or disclosure agreements pursuant
to which prior continuing disclosure undertakings were created.
Documents required to be filed pursuant to the City's continuing disclosure undertakings are
currently on file and available electronically from the MSRB at http://emma.msrb.org/. Information
regarding the Series 2026 Bonds and other outstanding bonds of the City may be found at the DAC interact
site, "http//www.dacbond.com."
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LITIGATION
There is no litigation or controversy of any nature now pending for which the City has received
service of process or, to the actual knowledge of the City Attorney, threatened against the City that seeks
to restrain or enjoin the issuance or delivery of the Series 2026 Bonds or contesting the proceedings or
authority under which they are to be issued or the creation, organization or existence of the City or, if
determined adversely to the City, would have a material adverse impact on the ability of the City to
generate sufficient Resort Tax Revenues to pay debt service on the Series 2026 Bonds.
The City experiences routine litigation and claims incidental to the conduct of its municipal affairs.
In the opinion of the City Attorney, there are no lawsuits presently pending or, to his actual knowledge,
threatened, the adverse outcome of which would impair the City's ability to perform its obligations under
the Bond Resolution. Also, see "SECURITY AND SOURCES OF PAYMENT" herein.
LEGAL MATTERS
Certain legal matters incident to the issuance of the Series 2026 Bonds and with regard to the tax-
exempt status of the interest on the Series 2026 Bonds (see "TAX MATTERS" herein) are subject to the
legal opinion of Squire Patton Boggs (US) LLP, Miami, Florida, Bond Counsel to the City. The signed
legal opinion of Bond Counsel, substantially in the form attached hereto as APPENDIX D, dated and
premised on law in effect as of the date of issuance of the Series 2026 Bonds, will be delivered on the date
of issuance of the Series 2026 Bonds. The actual legal opinion to be delivered may vary from the form
attached hereto to reflect facts and law on the date of delivery. The opinion will speak only as of its date,
and subsequent distribution of it by recirculation of this Official Statement or otherwise shall create no
implication that Bond Counsel has reviewed or expresses any opinion concerning any of the matters
referenced in the opinion subsequent to its date of issuance.
While Bond Counsel has participated in the preparation of certain portions of this Official
Statement, it has not been engaged by the City to confirm or verify such information. Except as may be
set forth in an opinion of Bond Counsel delivered to the Underwriters, Bond Counsel expresses and will
express no opinion as to the accuracy, completeness or fairness of any statements in this Official Statement,
or in any other reports, financial information, offering or disclosure documents or other information
pertaining to the City or the Series 2026 Bonds that may be prepared or made available by the City, the
Underwriters or others to the Holders of the Series 2026 Bonds or other parties.
Certain legal matters incident to the issuance of the Series 2026 Bonds relating to disclosure will
be passed on for the City by the Law Offices of Steve E. Bullock, P.A., Miami, Florida, whose legal
services as Disclosure Counsel have been retained by the City. The signed legal opinion, dated and
premised on law in effect as of the date of original delivery of the Series 2026 Bonds, will be delivered
to the City by Disclosure Counsel at the time of original delivery of the Series 2026 Bonds. The proposed
text of the legal opinion of Disclosure Counsel is set forth as APPENDIX E to this Official Statement. The
actual legal opinion to be delivered may vary from that text if necessary to reflect facts and law on the date
of delivery. The opinion will speak only as of its date, and subsequent distribution of it by recirculation
of this Official Statement or otherwise shall create no implication that Disclosure Counsel has reviewed
or expresses any opinion concerning any of the matters referenced in the opinion subsequent to its date of
issuance.
Certain legal matters will be passed on for the City by Ricardo J. Dopieo, Esquire, Miami Beach,
Florida, City Attorney. Bryant Miller Olive P.A., Miami, Florida, is serving as counsel to the Underwriters.
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The legal opinions and other letters of counsel to be delivered concurrently with the delivery of
the Series 2026 Bonds express the professional judgment of the attorneys rendering the opinions or advice
regarding the legal issues and other matters expressly addressed therein. By rendering a legal opinion or
advice, the giver of such opinion or advice does not become an insurer or guarantor of the result indicated
by that opinion, or the transaction on which the opinion or advice is rendered, or of the future performance
of parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal
dispute that may arise out of the transaction.
ENFORCEABILITY OF REMEDIES
The remedies available to the owners of the Series 2026 Bonds upon the occurrence of a default
under the Bond Resolution are in many respects dependent upon judicial actions which are often subject
to discretion and delay. Under existing constitutional and statutory law and judicial decisions, the remedies
specified by the Bond Resolution and the Series 2026 Bonds may not be readily available or may be
limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2026 Bonds
(including Bond Counsel's approving opinion) will be qualified, as to the enforceability of the various legal
instruments, by limitations imposed by bankruptcy, reorganization, insolvency or other similar laws
affecting the rights of creditors enacted before or after such delivery and to general principles of equity
(whether sought in a court of law or equity).
RATINGS
[In the event any of the Series 2026 Bonds are insured by , S&P Global Ratings,
a business unit of Standard and Poor's Financial Services LLC ("S&P"), is expected to assign a rating of
"AA" (stable outlook) to the insured Series 2026 Bonds with the understanding that upon delivery of the
insured Series 2026 Bonds, the Policy will be issued by . See "BOND INSURANCE
OPTION" herein. Additionally, Moody's Ratings ("Moody's") has assigned a rating of " " and S&P
has assigned a rating of " ," each with a "stable outlook," and each without regard to the issuance of
the Policy.[ Such ratings and outlook reflect the view of such organizations. An explanation of the
significance of such ratings and outlook may be obtained only from Moody's and S&P, respectively. An
explanation of the rating and outlook assigned by Moody's may be obtained from Moody's at 7 World
Trade Center, 250 Greenwich Street, 23rd Floor, New York, New York 10007, (212) 553-0300. An
explanation of the ratings and outlook assigned by S&P may be obtained from S&P at 55 Water Street,
38" Floor, New York, New York 10041, (212) 438-2124.
Generally, a rating agency bases its rating and outlook, if assigned, on the information and
materials furnished to it and on investigations, studies and assumptions of its own. A securities rating and
outlook is not a recommendation to buy, sell or hold securities. There is no assurance that the rating and
outlook assigned by Moody's or the ratings and outlook assigned by S&P, respectively, will continue for
any given period of time or that they will not be revised downward or withdrawn entirely by such rating
agencies if, in their judgment, circumstances so warrant. Any downward revision or withdrawal of such
ratings or outlook may have an adverse effect on the market price of the Series 2026 Bonds.
UNDERWRITING
The Series 2026 Bonds are being purchased by Morgan Stanley & Co. LLC, Jefferies LLC and
Stifel, Nicolaus & Company, Incorporated (collectively, the "Underwriters"), subject to certain terms and
conditions set forth in the bond purchase agreement between the City and the Underwriters, including the
delivery of opinions on certain legal matters relating to the issuance of the Series 2026 Bonds by Bond
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Counsel and the existence of no material adverse change in the condition of the City from that set forth
in the Official Statement.
The Series 2026 Bonds are being purchased at a purchase price of $ (which
represents the $ principal amount of the Series 2026 Bonds, [plus / minus a net
original issue premium / discount of $ ,] minus an Underwriters' discount of
$ ). The Series 2026 Bonds are offered for sale to the public at the prices and yields
set forth on the inside cover page of this Official Statement. The Series 2026 Bonds may be offered and
sold to certain dealers at prices lower than or yields higher than such offering prices and yields. After the
initial public offering, such public offering prices and yields may be changed, from time to time, by the
Underwriters.
Morgan Stanley, parent company of Morgan Stanley & Co. LLC, the senior manager for the
Underwriters, has entered into a retail distribution arrangement with its affiliate Morgan Stanley Smith
Barney LLC. As part of the distribution arrangement, Morgan Stanley & Co. LLC may distribute
municipal securities to retail investors through the financial advisor network of Morgan Stanley Smith
Barney LLC. As part of this arrangement, Morgan Stanley & Co. LLC may compensate Morgan Stanley
Smith Barney LLC for its selling efforts with respect to the Series 2026 Bonds.
In addition to the foregoing, the Underwriters may have entered into distribution agreements with
other broker -dealers (that have not been designated by the City as an underwriter) for the distribution of
the Series 2026 Bonds at the original issue prices. Such agreements generally provide that the relevant
underwriter will share a portion of its underwriting compensation or selling concession with such broker -
dealers.
The Underwriters and their respective affiliates are full service financial institutions engaged in
various activities, which may include sales and trading, commercial and investment banking, advisory,
investment management, investment research, principal investment, hedging, market making, brokerage and
other financial and non -financial activities and services. In the course of their various business activities,
the Underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold
a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit
default swaps and other financial instruments for their own account and for the accounts of their customers,
and such investment and trading activities may involve or relate to assets, securities and/or instruments of
the City (directly, as collateral securing other obligations or otherwise) and/or persons and entities with
relationships with the City. The Underwriters and their respective affiliates may also communicate
independent investment recommendations, market color or trading ideas and/or publish or express
independent research views in respect of such assets, securities or instruments and may at any time hold,
or recommend to clients that they should acquire, long and/or short positions in such assets, securities and
instruments.
Bond Counsel and Disclosure Counsel may, from time -to -time, serve as counsel to one or more
of the Underwriters on matters unrelated to the issuance of the Series 2026 Bonds.
FINANCIAL ADVISOR
- The City has retained PFM Financial Advisors LLC, Coral Gables, Florida, as financial advisor
with respect to the authorization and issuance of the Series 2026 Bonds (the "Financial Advisor"). The
Financial Advisor has assisted in the preparation of this Official Statement and in other matters relating
to the planning, structuring and issuance of the Series 2026 Bonds. The Financial Advisor is not obligated
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to undertake and has not undertaken to make an independent verification of, or to assume responsibility
for, the accuracy, completeness or fairness of the information contained in this Official Statement.
The Financial Advisor is an independent, registered municipal advisory firm. The Financial
Advisor is not engaged in the business of underwriting, marketing or trading of municipal securities.
Investors should not base any investment decision on the fact that the Financial Advisor has advised the
City on matters relating to the issuance of the Series 2026 Bonds.
CONTINGENT FEES
The City has retained Bond Counsel, Disclosure Counsel and the Financial Advisor with respect
to the authorization, sale, execution and delivery of the Series 2026 Bonds. Payment of the fees of such
professionals and an underwriting discount to the Underwriters (including the fees of Underwriters'
Counsel) are each contingent upon the issuance of the Series 2026 Bonds.
DISCLOSURE REQUIRED BY FLORIDA BLUE SKY LAWS
Section 517.051, Florida Statutes, and Rule 69W-400.003, Florida Administrative Code, requires
the City to disclose each and every default as to payment of principal and interest after December 31, 1975
with respect to obligations issued or guaranteed by the City. Rule 69W400.003 further provides, however,
that if the City in good faith believes that such disclosure would not be considered material by reasonable
investors, such disclosure may be omitted. The City has not defaulted on the payment of principal or
interest with respect to obligations issued or guaranteed by the City after December 31, 1975 that would
be considered material by a reasonable investor.
AUTHORIZATION CONCERNING OFFICIAL STATEMENT
The delivery of this Official Statement has been duly authorized by the City Commission. At the
time of the delivery of the Series 2026 Bonds, the Mayor and the City Manager of the City will furnish
a certificate to the effect that nothing has come to their attention which would lead them to believe that
this Official Statement, as of its date and as of the date of delivery of the Series 2026 Bonds, contains an
untrue statement of a material fact or omits to state a material fact which should be included therein for
the purpose for which this Official Statement is intended to be used, or which is necessary to make the
statements contained herein, in the light of the circumstances under which they were made, not misleading.
A limited number of copies of the final Official Statement will be provided, at the City's expense,
on a timely basis.
MISCELLANEOUS
All information included in this Official Statement has been provided by the City, except where
attributed to other sources. The summaries of and references to all documents, statutes, reports, and other
instruments referred to herein do not purport to be complete, comprehensive or definitive, and each such
reference or summary is qualified in its entirety by reference to each such document, statute, report or other
instrument. The information in this Official Statement has been compiled from official and other sources
and, while not guaranteed by the City, is believed to be correct. To the extent that any statements made
in this Official Statement and the appendices attached hereto involve matters of opinion or of estimates,
whether or not expressly stated, they are set forth as such and not as representations of fact, and no
representation is made that any of the estimates will be realized.
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This Official Statement has been duly executed and delivered by the Mayor and the City Manager
of the City of Miami Beach, Florida.
CITY OF MIAMI BEACH, FLORIDA
STEVEN MEINER, Mayor
ERIC T. CARPENTER, City Manager
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APPENDIX A
General Information and Economic Data
Regarding the City of Miami Beach, Florida
and Miami -Dade County, Florida
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GENERAL INFORMATION REGARDING
THE CITY OF MIAMI BEACH
AND MIAMI-DADE COUNTY, FLORIDA
[TO BE UPDATED, AS NEEDEDI
The following information pertaining to the City of Miami Beach, Florida (the "City") and Miami -
Dade County, Florida (the "County") is set forth for purposes of providing background information only.
The Series 2026 Bonds are payable only from the Resort Tax Revenues collected by the City, and other
amounts constituting Pledged Funds, as defined in this Official Statement. The Series 2026 Bonds do not
constitute a debt, liability or obligation or a pledge of the faith, credit or taxing power of the City, the
County, the State of Florida, or any political subdivision thereof.
INTRODUCTION
The City
The City is situated on a barrier island surrounded by the Atlantic Ocean to the east and Biscayne
Bay to the west. The City comprises approximately seven (7) square miles of land area and approximately
ten (10) square miles of Biscayne Bay. The City is connected to the mainland by four (4) vehicular
causeways.
The City enjoys a tropical climate, with an average annual temperature of 75 degrees Fahrenheit,
24 degrees Celsius. The City is the home of the Art Deco Historic District, consisting of one of the
greatest concentrations of Art Deco architecture in the United States. Within the Art Deco Historic District
is the world famous Ocean Drive, which has been called the "Riviera" of Florida.
The City is generally divided into three (3) distinct neighborhoods: South Beach, Mid -Beach and
North Beach. Each area has its own unique character and cultural identity that cater to residents and
visitors alike. Globally recognized as a premier tourism and cultural destination, the City also functions
as a vibrant business and residential hub, characterized by world -class arts, culture, dining, nightlife, special
events and retail offerings.
According to the U.S. Census Bureau's 2023 American Community Survey (ACS), the City's
estimated population is approximately 79,616. The median household income is $71,073 (based on income
in the past 12 months, adjusted for 2023 inflation), and the median age is 42.4 years. In 2023, the City's
labor force comprised approximately 44,038 individuals. The primary employment sectors include:
• Arts, entertainment, recreation, accommodation, and food services (23.40%)
• Professional, scientific, management, administrative, and waste management services
(18.50%)
• Educational services, healthcare, and social assistance (15.05%)
• Finance, insurance, real estate, rental, and leasing (13.50%)
The tourism and hospitality sectors remain foundational to the City's economy, generating
substantial revenue through hotel room nights and resort taxes. Despite global disruptions caused by the
COVID-19 pandemic, the City has sustained its status as one of the world's foremost travel destinations.
According to the Greater Miami Convention &Visitors Bureau (GMCVB), approximately 28.2 million
visitors traveled to the County in 2024, representing a 4.0% increase over the previous year. The City
remained the County's most frequented destination for overnight accommodations, drawing a majority of
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Florida resident overnight visitors (59%), international overnight visitors (52%), and nearly one-half (48%)
of domestic overnight visitors. Among both international and domestic travelers, the City consistently
ranks as the most visited area, with the Art Deco District, Lincoln Road, and the beaches cited as the top
attractions. The Art Deco Historic District was officially listed on the National Register of Historic Places
in 1979 and features the largest collection of Art Deco architecture in the world, comprising hundreds of
hotels, apartments, and other structures built between 1923 and 1943. Collectively, visitors to the City
generate an estimated $9.5 billion annual economic impact.
As of the first quarter of 2025, the County ranked second nationally among U.S. hotel markets in
both occupancy and average daily room rates. Hotel industry data from April 2025 indicates that the City
achieved a year-to-date occupancy rate of 81.2%, which grew at a faster pace (1.5%) than the Countywide
average of 82.1%, which represented a 1.2% growth for the County. The City also posted a strong
year -over -year increase in average daily room rates, reaching $356.82 in 2025, which represents a 3.1%
gain compared to the County's average daily room rate of $274.90 in 2025, which reflects a 3.0%
year -over -year increase.
Miami International Airport ("MIA") reported a slight year-to-date decline in weekly passenger
arrivals as of 2025, down 0.4% for international travelers and 0.5% for domestic travelers, compared to
2024. Despite the slight decline, MIA continues to lead all U.S. airports in international passenger and
cargo traffic, according to the Miami -Dade Beacon Council. In addition, PortMiami the (the "Port") has
demonstrated continued strength in the cruise industry. In February 2025, the Port welcomed a
record -breaking ten cruise ships in a single day. It remains the first major East Coast cruise port to provide
shore power capabilities at five berths, positioning it as a leader in both sustainability and capacity. Cruise
passenger volume in the first quarter of 2025 rose by 4.7% year -over -year and by 15.5% compared to the
first quarter of 2023.
The Miami Beach Convention Center (the "Convention Center"), a LEED Silver -certified facility
by the U.S. Green Building Council, continues to reinforce the City's status as a leading destination for
conventions and events. In 2024, the Convention Center hosted 98 regional, national, and international
events, including Art Basel, the Miami International Boat Show, eMerge Americas, and iConnections,
welcoming over 613,000 attendees. The Convention Center is projected to host 71 events in 2025. In
2024, the Convention Center received several industry accolades, including:
• Northstar Meeting Group's Silver Stella Award (third consecutive year)
• Lux Life Magazine's Hidden Gem of the Year
• Exhibitor Magazine's Centers of Excellence Award
• Association Conventions & Facilities' Distinctive Achievement Award
• Smart Stars' Best Convention Center Award
• Convention South Reader's Choice Award
• Facilities and Destination's Prime Site Award
These achievements collectively affirm the City's continued economic vitality, its leadership in the
hospitality and events industry, and its enduring global appeal.
The City remains firmly committed to diversifying its economy, which historically has been
centered on tourism and hospitality. The strategic shift in priority is facilitating the emergence of a
dynamic, multi -sector business environment encompassing financial services, technology, health and
wellness, and the arts. The City's evolving commercial landscape is drawing increasing interest from
innovative start-ups, established investors, and leading industry stakeholders. This trend is fostering a
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collaborative ecosystem that supports cross -sector growth, enhances the overall vitality of the labor market,
and contributes to a more resilient and adaptable local economy.
To capitalize on the increase in economic opportunities created within the City and proactively
address evolving economic challenges, the City continues to pursue targeted initiatives designed to
strengthen the business climate and stimulate commercial growth. The City is positioned as a premier
destination to launch, expand, or relocate a business, to build a meaningful and rewarding career, and to
explore real estate development and investment opportunities. Supporting this positioning is a suite of
incentive programs and services offered by the City, including, to name a few, a Business Concierge
Program, the Expedited Plan Review and Permitting Program, the Job Creation Incentive Program, and the
Commercial Lease Subsidy Program. These efforts are complemented by ongoing investments in
streetscape and infrastructure improvements, and the cultivation of special assessment and business
improvement districts, demonstrating the City's continued dedication to fostering a competitive and
resource -efficient economic environment. In response to broader national and global economic conditions,
including supply chain disruptions, workforce availability, and housing affordability, the City remains
focused on supporting small businesses by providing grant opportunities, disseminating technical
information, and identifying strategies to reduce barriers to success.
The City has placed a strong emphasis on advancing economic development within its key
commercial corridors through the implementation of initiatives that leverage local assets, enhance urban
aesthetics, and foster active stakeholder engagement. The creation of the North Beach Community
Redevelopment Agency has served as a catalyst for renewed private investment, new development, and
meaningful quality -of -life improvements within the North Beach community. In South Beach,
transformative initiatives within the Art Deco Cultural District and the recently expanded and upgraded
Convention Center campus continue to enhance the area's appeal. Recent and ongoing enhancements
include the activation of eight acres of improved Convention Center public park space and the present
development of a Convention Center hotel. Similarly, the Mid -Beach area is undergoing a revitalization
through the establishment of a business improvement district and associated public improvements and
investments designed to deliver sustained benefits for both residents and visitors. Such developments are
expected to further strengthen the City's standing as a globally recognized destination.
The City is home to some of the nation's most coveted commercial and residential real estate. The
relocation and expansion of private equity, investment, and financial services firms into the City has
infused the local economy with talent, capital, and momentum, catalyzing new business activity and
spurring the growth of complementary industries. Lincoln Road continues to rank among Florida's
highest -value retail corridors and is experiencing a diversification of tenancy with the addition of notable
office and dining establishments. A major public streetscape improvement project is also planned to
commence for the corridor. The City's hospitality sector continues to lead the nation in hotel performance
metrics, buoyed by an internationally acclaimed restaurant scene, celebrated historic architecture, immersive
public art installations, and world -class cultural programming. The City is increasingly defined by a spirit
of innovation and opportunity, exemplified by the growing community of entrepreneurs, investors, and
thought leaders who are shaping the City's future as a forward -looking, business -friendly urban center.
The County
The County is the most populous county in the southeastern United States and one of the largest
in geographic area. The County spans approximately 2,209 square miles, with the majority of its
population concentrated along the coastal, eastern areas. The western portion of the County encompasses
part of the Florida Everglades and remains largely undeveloped. The County was formally established on
January 18, 1836 under a Territorial Act of the United States. At the time, the territory of the County
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included the land that now comprises Palm Beach and Broward Counties, in addition to what is today
Miami -Dade County.
In 1909, Palm Beach County was created from the northern portion of what was then Dade County.
In 1915, Palm Beach County and then Dade County contributed nearly equal portions of land to create
what is now Broward County. There have been no significant boundary changes to the County since 1915.
There are thirty-four (34) incorporated municipalities in the County and the County serves as a municipal
government for its unincorporated areas. In addition to the City, the municipalities in the County include
the cities of Miami, Hialeah and Coral Gables.
POPULATION
According to estimates from the U.S. Census Bureau for calendar year 2023, the population of the
City of Miami Beach is approximately 79,616, while the population of Miami -Dade County for calendar
year 2024 stands at approximately 2,774,841. The following section provides general population statistics
and demographic trends related to both the City and the County, including data regarding age distribution
and historical growth patterns.
Population, City of Miami Beach
and Miami -Dade County 2015 - 2024
City of Miami -Dade
Calendar Year Miami Beach Percent Change County Percent Change
2015
91,564
—
2,653,934
—
2016
91,917
0.4%
2,696,353
1.6%
2017
92,307
0.4
2,743,095
1.7
2018
91,718
(0.6)
2,779,322
1.3
2019
93,988
2.5
2,812,130
1.2
2020
94,161
0.2
2,701,767
(3.9)
2021"'
80,671
(14.3)
2,731,939
1.1
2022"'
80,027
(0.8)
2,757,592
0.9
2023"'
79,616
(0.5)
2,768,954
0.4
2024
(2)
(2)
2,774,841
0.2
Source: Annual Comprehensive Financial Report of the City of Miami Beach, Florida for the Fiscal Year ended
September 30, 2024 and Annual Comprehensive Financial Report of Miami -Dade County, Florida for the
Fiscal Year ended September 30, 2024.
(1) Amounts for the City for calendar years 2021 - 2023 are provided by the U.S. Department of Commerce,
Bureau of Census, American Community Survey (based on population estimates from the 2020 U.S. Census)
and, for the calendar years prior to 2021, are based on estimates provided by the State of Florida.
(2) Information currently unavailable.
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Population Breakdown
City of Miami Beach, 2019 - 2023
Age Group 2019 2020 2021 2022 2023
Under 18
14.8%
15.5%
15.6%
14.6%
15.2%
18 and over
85.2
84.5
84.4
85.4
84.8
21 and over
82.7
81.8
82.1
83.5
82.7
65 and over
16.7
16.7
17.1
18.2
18.4
Median Age:
41.4
41.6
41.7
42.3
42.4
Source: U.S. Department of Commerce, Bureau of Census.
GOVERNMENT
The City was incorporated as a municipal corporation on March 26, 1915. The City operates under
a Commission/City Manager form of government. The governing body of the City consists of a
seven -member City Commission composed of the Mayor and six (6) City Commissioners. The City
Commission serves as the policy -making authority for the City and is empowered to enact ordinances,
conduct public hearings, approve contracts, adopt the annual budget, establish property tax levies, authorize
the issuance of debt secured by the City's full faith and credit or revenue sources, and approve the
construction of public infrastructure and improvements.
The Mayor and City Commission are elected on a citywide, nonpartisan basis. Elections are held
in odd numbered years. The Mayor is elected to serve two-year terms with a lifetime limit of three (3)
two-year terms. Commissioners are elected to serve four-year terms with a lifetime limit of two (2) four-
year terms. City Commission terms are staggered to ensure continuity in governance by avoiding complete
turnover of the City Commission at any one time. Additionally, the City Commission selects one (1) of
its members on a rotating basis to serve as Vice Mayor for a four -month term. The Mayor, who is the
presiding officer at City Commission meetings, may vote on all matters that come before the City
Commission, but does not possess veto authority. The City Commission is responsible for appointing four
(4) Charter Officers: the City Manager, the City Attorney, the City Clerk and the Inspector General.
Department directors and other senior administrative personnel are appointed by the City Manager, subject
to confirmation by the City Commission.
The City Manager functions as the Chief Executive Officer of the City and is responsible for
ensuring that the ordinances, resolutions, policies, and directives enacted or adopted by the City
Commission are faithfully executed. The City Manager provides strategic leadership, professional
guidance, and executive oversight to the City's operations and administration. This role includes the
preparation and management of the City's budget, long-term planning and development, oversight of City
personnel and departments, intergovernmental coordination, and the provision of recommendations and
updates to the City Commission. The City Manager is also charged with safeguarding the health, safety,
and welfare of both residents and visitors. Except for the City Attorney's Office and City Clerk's Office,
all department directors report to and serve at the discretion of the City Manager.
SCOPE OF SERVICES
The City provides a comprehensive array of municipal services to its residents, businesses and
visitors, including police and fire protection, parks, recreation and cultural programming, public sanitation
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services, including solid waste collection and recycling, water, wastewater, and stormwater management,
public works, including the construction and maintenance of streets and municipal infrastructure,
neighborhood and community services, and economic development and urban planning initiatives. These
services are designed to support a high quality of life, promote sustainability and resilience, and ensure the
effective and efficient operation of the City.
ECONOMIC AND DEMOGRAPHIC DATA
Median Household Income
The estimated median household income for the City has been consistently higher than the median
household income for the County in recent years. From calendar year 2017 through 2023, the City's
median household income has demonstrated steady growth, reflecting the City's resilient economic base,
sustained demand for residential properties, and continued appeal to higher -income households and
professionals across diverse industries. Between 2017 and 2023, the difference between the City's and the
County's median household income ranged from approximately 1.74% to 8.5%, with the highest differential
observed in calendar year 2018. While the County experienced a significant year -over -year increase in
2023, surpassing the City's median income for the first time in the reported period, the City's figures
continue to reflect a strong upward trajectory overall.
The table below presents the estimated median household income for the City and the County from
2017 through 2023. All values are adjusted for inflation and reported in constant dollars.
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Estimated Median Household Income, 2017 - 2023
City of
Miami -Dade
Calendar Year
Miami Beach
Percent Change
County
Percent Change
2017
$50,193
-
$46,338
-
2018
53,348
6.3%
48,982
5.7%
2019
53,971
1.2
51,347
4.8
2020
57,211
6.0
53,975
5.1
2021
59,162
3.4
57,815
7.1
2022
65,116
10.1
64,215
► 1.1
2023
67,014
2.9
68,694
7.()
Source: U.S. Department of Commerce, Bureau of Census.
Per Capita Personal Income
From calendar year 2017 through 2023, the estimated per capita personal income in the County
increased by approximately 48%, rising from $49,166 to $72,953. The County's growth in per capita
income during this time frame slightly outpaced that of both the State of Florida and the United States,
which recorded increases of approximately 39.9% and 35.42%, respectively, during the same period. This
relative growth reflects the County's strong economic performance and increasing prosperity when
compared to broader state and national trends.
Per Capita Personal Income, 2017 - 2024
Calendar
Miami -Dade
State of
Year
County
% of U.S.
Florida
% of U.S.
United States
2017
$49,166
95.4%
$49,055
95.2%
$51,550
2018
53,584
99.6
51,520
95.8
53,786
2019
56,137
99.8
54,560
97.0
56,250
2020
57,713
96.6
57,292
95.9
59,765
2021
64,849
101.1
62,270
97.1
64,143
2022
68,336
103.0
64,468
97.0
66,244
2023
72,953
105.0
68,630
98.0
69,810
2024
(1)
(1)
70,544
99.0
71,456
Source: Annual Comprehensive Financial Report of the State of Florida for the Fiscal Year ended June 30, 2024 and
Annual Comprehensive Financial Report of Miami -Dade County, Florida for the Fiscal Year ended
September 30, 2024.
(1) Information currently unavailable.
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EMPLOYMENT
The following tables provide information relating to the City's labor force for calendar years 2019
through 2024 and the principal employers in the County for the Fiscal Year ended September 30, 2024 and
comparative data for the Fiscal Year ended September 30, 2015.
City of Miami Beach Employment 2019 - 2024*
Labor Force 2019 2020 2021 2022 2023 2024
Labor Force Employed 46,420 40,262 42,469 45,043
46,201
46,881
Labor Force Unemployed 1,201 3,759 2,027 1,087
822
1,012
Total Labor Force 47,621 44,020 44,496 46,130
47,023
47,893
Unemployment Rate 2.5% 8.7% 4.6% 2.4%
1.7%
2.1 %
Source: U.S. Department of Labor, Bureau of Labor Statistics.
* Represents the annual average of the monthly amounts and percentages reported
for each year.
Amounts
presented in table represent totals, which may not add due to rounding.
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Miami -Dade County
Principal Employers
2024
2015
Percentage
Percentage
of Total
of Total
County
County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Miami -Dade County Public Schools
35,497
1
2.55%
31,000
1
2.35%
Miami -Dade County
29,495
2
2.12
24,692
2
1.87
University of Miami
22,566
3
1.62
13,864
5
1.05
Jackson Health System
14,249
4
1.02
8,163
8
0.62
Publix Super Markets
14,146
5
1.01
-
-
-
American Airlines
11,297
6
0.81
11,773
7
0.89
Amazon
7,383
7
0.53
-
-
-
Walmart
7,373
8
0.53
-
-
-
Florida International University
6,597
9
0.47
4,951
9
0.37
Miami -Dade College
5,958
10
0.43
2,572
15
0.19
United States Postal Service
5,843
11
0.42
-
-
-
Baptist Hospital of Miami
5,469
12
0.39
-
-
-
Department of Homeland Security
5,356
13
0.38
-
-
-
City of Miami
5,000
14
0.36
3,820
10
0.29
Baptist Health South Florida
4,919
15
0.35
13,369
6
1.01
Federal Government
-
-
-
19,300
3
1.46
Florida State Government
-
-
-
19,200
4
1.45
Miami Children's Hospital
-
2,991
13
0.23
Mount Sinai Medical Center
-
-
-
3,402
11
0.26
Homestead AFB
-
-
-
2,810
14
0.21
Florida Power & Light Company
-
-
-
3,011
12
0.23
TOTAL
181, 148
1�/0
164,918
12.48%
Source: Annual Comprehensive Financial
Report of Miami -Dade County, Florida for
the Fiscal Year ended September 30, 2024.
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BUILDING PERMITS
The following is a calculation of the total value of the Building Permits issued by the City during
the past ten (10) years.
City of Miami Beach, Florida
Value of Building Permits Issued
Fiscal Years 2015 - 2024
Fiscal Year
Ended
September 30, Number of Permits"' Total Value"'
2015
14,396
$ 742,450,180
2016
13,114
1,004,748,170
2017
10,978
990,230,904
2018
10,449
567,164,899
2019
9,885
681,226,517
2020'2'
6,606
409,368,960
2021("
8,675
598,927,328
2022
12,434
926,044,769
2023
12,171
1,077,155,160
2024
12,828
1,528,167,560
Source: City of Miami Beach Building Department.
(1) Amounts have been revised from numbers provided previously to reflect the most recent
determination of actual number of permits issued and final valuations and improved
calculation and reporting of such amounts from upgraded accounting software.
(2) Decreases in Fiscal Year 2020 and 2021 result from the impacts of the COVID-19
pandemic.
LOCAL ECONOMY
Tourism remains the cornerstone of the City's economy, generating over $9.5 billion annually in
direct visitor spending on hotels, food and beverages, and contributing significantly to the City's
multi -billion -dollar retail marketplace. In Fiscal Year 2019, prior to the COV1D-19 pandemic, the City
welcomed approximately 7.2 million overnight visitors and 7.9 million tourists to South Beach and the Art
Deco Historic District.
While Fiscal Year 2020 saw a notable decline in visitation due to pandemic -related impacts,
tourism rebounded quickly, returning to near pre -pandemic levels in Fiscal Year 2021 and has continued
to rise in subsequent years. In Fiscal Year 2024, the City hosted over 5.4 million overnight visitors, with
total visitor -generated revenues again reaching approximately $9.5 billion.
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According to the 2024 Visitor Industry Overview by the Greater Miami Convention and Visitors
Bureau, the Greater Miami and Miami Beach area attracted over 28.2 million visitors in 2024, comprised
of 20.1 million overnight and 8.1 million day -trip visitors. Such visitors spent a combined $22 billion,
marking a 4% increase over such spending in 2023. The total economic impact of tourism reached $31.1
billion in 2024, up 5% from the prior year. Such economic impact contributed $20 billion to the County's
Gross Domestic Product, accounting for 9% of the County's total Gross Domestic Product in 2024.
Tourism supported more than 209,000 jobs in 2024, constituting approximately 10% of all jobs in
the County, and generated $11.5 billion in wages. The industry also contributed $5.2 billion in combined
annual tax revenues at the county, state, and federal levels, including $2.2 billion for the County and the
State of Florida. Such revenues equate to tax savings of approximately $2,200 per household, or $787 per
person in the County.
The recovery following the COVID-19 pandemic and continued growth of the tourism sector have
been supported by increased hotel room demand, rising air and cruise passenger volumes, and expanded
capacity at Miami International Airport. The City's benefit from the area's diverse lineup of signature
events, including Formula 1, and renewed interests in conducting regional, national and international
meetings and conventions in the area, have also contributed to the sustained increase in economic activity
in the City.
Major annual conferences, such as eMerge Americas and iConnections, and Global Alts Miami
showcase the City's emergence as a destination for innovation and entrepreneurship. Since 2002 (excluding
2020), the City has hosted the U.S. edition of Art Basel, the world's most prestigious international art fair.
In 2024, the fair featured 286 leading galleries from 38 countries and attracted more than 75,000 visitors,
generating $547 million in economic activity, which constituted a 9.4% increase from 2023, according to
a study by BixCosts.com. Art Basel will return to the City in December 2025.
The City continues to serve as a regional hub, welcoming 7 to 9 million day -trip visitors annually
from the surrounding area. It has also long attracted major film and television productions, including
Ballers (HBO), Bum Notice (USA), Magic City (Starz), and films such as Iron Man 3, Pain & Gain, and
the Bad Boys franchise. Despite external challenges affecting the entertainment industry, the City remains
a sought-after location for film, fashion, and television productions. The City is also home to numerous
international talent and modeling agencies and continues to attract global events and creative professionals.
According to the Arts & Economic Prosperity 6 report by the Miami -Dade County Department of
Cultural Affairs, the County's arts and cultural sector generates $2.1 billion in annual economic activity
and supports over 31,500 jobs. Nonprofit arts organizations account for $1.2 billion in spending, with
audiences contributing another $856 million. The study further highlights that 21.4% of arts event
attendees travel from outside the County, underscoring the sector's value to local tourism.
CONVENTION CENTER RENOVATION
The Convention Center, originally built in 1957, recently underwent a $515 million renovation and
expansion, which was completed in the Fall of 2018. The Convention Center now offers upgraded and
completely redefined meeting spaces and entertainment solutions for hosting large-scale business, trade,
civic, and cultural events.
The new 1.4 million square foot, LEED certified facility includes a state-of-the-art 60,000 square
foot grand ballroom, additional meeting rooms with flexible arrangements, a 20,000 square foot glass
rooftop junior ballroom, advanced technology, and new versatile indoor/outdoor public spaces. For added
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convenience, 800 parking spaces located across from the Convention Center have been relocated within
the footprint of the building, thus allowing a 5.8 acre parking lot to be converted into a public park
surrounded by canopy trees, a flexible lawn area, a food pavilion, and a public plaza to honor the City's
veterans. The park has the potential to become the new civic "heart" of Miami Beach. The new upgrades
and improvements enable the Convention Center to keep up with the demands of the competitive national
and international convention community, while new outdoor public spaces create improved walkability,
connecting the Convention Center and the City's adjacent historical cultural district and resorts.
CONVENTION CENTER HOTEL
In November 2018, voters of the City overwhelmingly approved the leasing of City -owned land
to facilitate the development of a new hotel adjacent to the Convention Center. A connected, first-class
hotel is a critical component of the City's vision to deliver a world -class, competitive convention campus
capable of attracting major events and global meetings.
Located at the corner of 17th Street and Convention Center Drive, the 17-story, 800-room Grand
Hyatt Miami Beach Convention Center Hotel (the "Convention Center Hotel") will anchor the Convention
Center District. The Convention Center Hotel site is within walking distance of the beachfront, Lincoln
Road's vibrant retail and dining corridor, the New World Center, the Bass Museum and Collins Park
Cultural Campus, and the Fillmore Miami Beach at the Jackie Gleason Theater.
In June 2022, the developer of the Convention Center Hotel commenced initial site preparations.
A groundbreaking ceremony was commemorated in May 2025, with vertical construction scheduled to
begin soon thereafter. The current schedule estimates a 30-month construction period.
The Convention Center Hotel will include 12 floors of guest rooms and 52 luxury suites offering
sweeping views of the City, four floors of meeting and ballroom spaces, designed to complement and
enhance the capabilities of the Convention Center, a rooftop, resort -style pool deck with panoramic views,
a signature restaurant, lobby lounge and bar, and limited, street -level retail venues. A climate -controlled,
art -filled skybridge will provide seamless access between the Convention Center Hotel and the Convention
Center, enhancing the guest experience and allowing for smooth, weatherproof movement between venues.
MIAMI BEACH VISITOR AND CONVENTION ACTIVITY
The City and the Greater Miami area offer a diverse hotel portfolio that appeals to both leisure and
business travelers alike, from luxury beachfront resorts to boutique accommodations in historic districts.
The region consistently ranks among the top hospitality destinations in the United States. According to
STR, a leading global hospitality analytics firm, the County remained one of the Top 25 U.S. hotel markets
in 2024. The County concluded the year with:
An average occupancy rate of 73.8%,
An average daily rate (ADR) of $224.04, and
Revenue per available room (RevPAR) of $163.79.
While home -sharing platforms like Airbnb continued to expand in 2024, traditional hotel
accommodations remain the preferred choice for most overnight visitors to the area. Following years of
exceptional hotel performance driven by pandemic -related travel dynamics, 2024 marked a return to more
normalized hotel activity. Modest but steady growth in all key performance indicators was reported across
the region.
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In early 2025, the County experienced a strong start, with hotel occupancy from January through
April reaching 82.1%, up 1.2% year -over -year and ranking second nationally among major markets.
Moreover, the County led the nation in hotel RevPAR, solidifying the region's standing as one of the most
resilient and high -performing hospitality markets in the United States.
The development of the Convention Center Hotel supports and strengthens the City's commitment
to attract high -value conventions and accommodate a growing volume of overnight guests. Each year, the
Convention Center hosts a diverse slate of events, and the City welcomes millions of visitors whose
economic contributions support local businesses, jobs, and public revenues. Set forth below is information
relating to Convention Center attendance and overnight visitor activity.
Miami -Dade County and the Miami Beach Convention Center host a large number of conventions
and the City welcomes a large number of overnight visitors each year. Set forth below is information
relating to Convention Center attendance and overnight visitor activity.
City of Miami Beach, Florida
Convention Center Attendance and Overnight Visitors
Fiscal Years 2013 - 20241"
Convention Center Overnight Total Overnight
Fiscal Year Attendance Visitors Visitor Spending
2013
589,663
5,697,053
$ 8,088,739,484
2014
737,954
6,961,200
9,201,340,602
2015
591,277
6,652,186
10,614,159,967
2016
388,641"'
6,951,648
10,500,000,000
2017
174,055"'
7,153,246
11,546,000,000
2018
147,200`2'
7,284,000
11,681,700,000
2019
422,588
7,182,000
12,020,500,000
2020"
300,445
2,300,000
3,400'000,00014)
2021')
77,125
5,200,000
8,800,000,000'41
2022
503,655
5,600,000
9,900,000,000`4j
2023
421,705
5,500,000
9,700,000,000
2024
613,543
5,400,000
9,500,000,000
Source: Greater Miami Convention and Visitors Bureau.
Footnotes for the immediately preceding table are provided on the next page.
(1) Amounts for Overnight Visitors for Fiscal Years 2018 through 2024 and for Total Overnight Visitor
Spending for Fiscal Years 2016 through 2024 are estimates.
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(2) Reduced attendance resulted from portions of the Convention Center being unavailable due to the
renovation and expansion project, which commenced in December 2015 and was completed in
September 2018.
(3) Decrease results from the impact of the COVID-19 pandemic.
(4) Decrease results from a major revision to the visitor profile program.
TRANSPORTATION
Surface Transportation
The County has a comprehensive transportation network designed to meet the needs of residents,
visitors and area businesses. The County's internal transportation system includes:
• Metrorail, a 24.8 mile, 23 station, elevated electric rail system connecting South Miami -Dade
and the City of Hialeah with to downtown Miami and civic center areas and Miami
International Airport, providing 21.5 million passenger trips annually;
• Metromover, a fully automated, driverless, 4.4 mile elevated electric rail, double -loop people
mover system that (i) is interfaced with Metrorail, (ii) completes approximately 10.3 million
passenger trips annually throughout 21 stations and (iii) carries passengers around downtown
Miami's central business center, south to the Brickell Avenue business and international
banking centers and north to the Andrienne Arsht Performing Arts Center and Omni shopping
center areas;
• the County's Metrobus system which (i) includes both directly operated and contracted
conventional urban bus service, (ii) interconnects with all Metrorail stations and key
Metromover stations, (iii) operates over approximately 29.6 million revenue miles per year, and
(iv) provides over 65.2 million passenger trips annually;
• Paratransit Services, offered through the County's Special Transportation Service for elderly
and disabled residents, providing over 1.64 million passenger trips annually in a demand -
response system which (i) includes both directly operated and contracted conventional urban
bus service, (ii) interconnects with all Metrorail stations and key Metromover stations, (iii)
operates over approximately 29.6 million revenue miles per year, and (iv) provides over 65.2
million passenger trips annually; and
• Municipal Trolleys, offered by many municipalities, including the City, and operated as local
circulator trolleys, typically free and integrated with the County's transportation system.
Participating cities include Aventura, Coral Gables, Doral, Hialeah, Homestead, Miami, Miami
Gardens, North Miami Beach, and Sunny Isles Beach.
Passenger service between the northeastern United States and South Florida is provided by Amtrak.
In addition to Amtrak., the Tri-County Rail Service is a 72-mile train system that provides commuter
passenger service between Miami -Dade, Broward, and Palm Beach Counties, with 50 weekday and 30
weekend/holiday trains serving 18 stations. Average daily ridership exceeds 11,000 passengers, with recent
peaks surpassing 13,000 passengers.
Brightline Trains Florida LLC is an express intercity passenger rail system extending from Miami
to Orlando, Florida, with stations located in Miami, Aventura, Fort Lauderdale, Boca Raton, West Palm
Beach and Orlando ("Brightline"). Originally developed and operated by "All Aboard Florida," a
subsidiary of Florida East Coast Industries, Brightline is the United States' only privately owned and
operated intercity passenger railroad. Brightline provides Floridians and visitors a viable, high quality
transportation alternative to congested highways and airport terminals.
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Brightline began service from Fort Lauderdale to West Palm Beach in January 2018, which was
extended to Miami in May 2018. Service to Orlando was launched on September 22, 2023, with sixteen
daily roundtrips scheduled. Service is currently provided approximately once each hour, including
30-minute departures for peak morning and evening commutes, generally beginning at 5:00 a.m. to
approximately 1:00 a.m. In April 2024, Brightline served 223,117 riders, a 48% year -over -year increase.
Brightline now offers 18 daily round trips, including 16 covering the full Miami -to -Orlando route.
Additional stations are planned, including a possible extension approximately 90 miles from Orlando to
Tampa, with two planned intermediate stops expected to serve the Orange County Convention Center and
the major theme parks in Central Florida.
Miami International Airport
Miami International Airport is one of the busiest airports in the world for both passenger and cargo
traffic. In 2024 Miami International Airport:
Served nearly 56 million passengers,
Processed over 3 million tons of cargo, and
Recorded three consecutive years of passenger volume records and five consecutive years of
cargo growth.
Key highlights, Miami International Airport:
Became the busiest United States airport for international cargo in 2021 and surpassed New
York's JFK Airport as the top United States gateway for international passengers;
Is the 3rd largest hub for American Airlines and serves as a key base for Avianca, Frontier
Airlines, and LATAM; and
Spans 3,300 acres, provides access to 150 global destinations and ranks:
8th in the United States and 14th globally for total passenger traffic,
2nd in the United States for international passenger volume, and
1 st in the United States and 7th worldwide for total cargo tonnage.
PortMiami
The Port of Miami, known as the "cruise capital of the world" ("PortMiami"), is a 520-acre island
port and one of the busiest seaports for both cruise and cargo operations.
Cruise Operations:
In Fiscal Year 2024, PortMiami welcomed over 7.2 million cruise passengers, including
embarkations for the world's largest cruise ship, Icon of the Scas;
After cruise operations were suspended in 2020 due to the COVID-19 pandemic, service
resumed in July 2021 and, by Fiscal Year 2022, passenger volume surged to 4.02 million, up
1,496% from Fiscal Year 2021; and
Most cruise lines have now returned to pre -pandemic occupancy rates, with many exceeding
100%.
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Cargo Operations:
PortMiami handles over 9.6 million tons of cargo annually, supporting more than 22,000 direct
jobs and a total economic impact exceeding 334,000 jobs countywide;
The cargo sector generates $890 million in direct wages and over $1.6 billion in total income
and consumption expenditures annually; and
The total economic impact of PortMiami's cargo operations is estimated at $35 billion
statewide, generating $10 billion in income and $2 billion in taxes.
Infrastructure Investments:
Recent investments impacting PortMiami include:
— The PortMiami Tunnel (opened in 2014), improved direct access from I-95 and
I-395;
— New cruise terminals, parking garages, and roadways,
— Electrification of gantry crane docks and acquisition of super post-Panamax
cranes,
— Completion of the Deep Dredge Project in 2015, making PortMiami the only
United States port south of Virginia able to accommodate the world's largest
container ships.
Global Trade:
PortMiami is a strategic hub for trade with Latin America, the Caribbean, and the Far East.
42% of cargo tonnage pre -pandemic came from the Caribbean and Latin America, while 35%
was from Asia -Pacific markets.
RECREATION
The City offers a wide array of recreational opportunities, with more than 40 parks, playgrounds,
and recreational facilities spread throughout its neighborhoods. Whether it is beach volleyball, roller
skating, tennis, pickleball, or golf, the City's parks and open spaces offer something for everyone.
Signature Parks and Open Spaces
• Flamingo Park: A centrally located, multi -use park known for its extensive sports facilities,
including tennis courts, basketball courts, a track, and an aquatic center.
• North Shore Park & Youth Center. Serves as a key recreational and community hub for the
North Beach neighborhood.
• Pride Park: A nearly 6-acre urban green space located across from the Miami Beach
Convention Center, often used for public events and cultural programming.
• Miami Beach Botanical Garden: A serene 2.6-acre garden showcasing over 100 palm species,
native plants, and orchids. It also functions as a venue for educational programming and art
exhibitions.
The nine -mile Beachwalk is a scenic oceanfront pathway ideal for walking, jogging, and biking.
It runs the length of the City's eastern edge, connecting neighborhoods, parks, and commercial districts
along the beach.
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Water Recreation and Marina Access
The Gulf Stream, located just offshore, provides abundant fishing opportunities for game fish
enthusiasts. The Miami Beach Marina, a state-of-the-art facility, offers:
• 400 boat slips accommodating vessels up to 250 feet in length;
• Direct access to the Atlantic Ocean and the Gulf Stream; and
• A full suite of marina services in the South Pointe area of the City.
Located on City -owned bayfront land adjacent to Government Cut, the Marina is a private
development and remains one of South Florida's premier boating destinations.
Golf Facilities
The City owns and operates two championship public golf courses:
• Miami Beach Golf Club; and
• Normandy Shores Golf Club.
Both facilities feature clubhouses that include a restaurant, lounge, and pro shop, offering amenities
for golfers of all levels.
Cultural Resources
Miami Beach is internationally recognized as a cultural destination, anchored by the historic Art
Deco District, home to the largest concentration of Art Deco architecture in the world.
Notable cultural institutions include:
• The Bass: A contemporary art museum with exhibitions, artist talks, and educational
programs,
• The Wolfsonian-FIU: Focused on modern -era art, design, and history,
• Miami Beach Botanical Garden: In addition to its horticultural appeal, it serves as a platform
for visual and performing arts.
Signature Events and Public Art
Miami Beach is host to a vibrant calendar of cultural events that draw global audiences, including:
• Art Basel Miami Beach;
• South Beach Jazz Festival; and
• South Beach Food and Wine Festival.
Public art installations, such as those in Pride Park and along Ocean Drive, contribute to the City's
dynamic and accessible arts landscape.
With its unique combination of recreational amenities, natural beauty, and cultural vibrancy, Miami
Beach provides an exceptional quality of life for residents and a memorable experience for visitors from
around the world.
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APPENDIX B
Excerpts from Comprehensive Annual Financial Report
of the City of Miami Beach, Florida
for the Fiscal Year Ended September 30, 2025
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APPENDIX C
The Bond Resolution
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APPENDIX D
Proposed Form of Opinion of Bond Counsel
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APPENDIX E
Proposed Form of Opinion of Disclosure Counsel
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Date of Delivery
Mayor and City Commission of the
City of Miami Beach, Florida
1700 Convention Center Drive
Miami Beach, Florida 33139
CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds
Series 2026
Ladies and Gentlemen:
We have served as Disclosure Counsel in connection with the issuance by the City of Miami
Beach, Florida (the "City") of its S in aggregate principal amount of Resort Tax Revenue
Refunding Bonds, Series 2026 (the "Series 2026 Bonds"). The Series 2026 Bonds are being issued with
the terms, for the purposes and subject to the conditions set forth in Resolution No. No. 2015-29175
adopted by the Mayor and City Commission of the City (collectively, the "City Commission") on October
14, 2015 (the "Original Resolution"), as supplemented by Resolution No. No. 2026- adopted by the
City Commission on April _, 2026 (the "Series 2026 Resolution" and, together with the Original
Resolution, the "Bond Resolution"), as described in the Official Statement dated May _, 2026 relating
to the Series 2026 Bonds (the "Official Statement"). All capitalized terms used in this opinion that are not
defined herein and not normally capitalized shall have the meaning ascribed to such terms in the Official
Statement.
In connection with the issuance and delivery of this opinion, we have considered such matters of
law and fact and have relied upon such certificates and other information furnished to us as we have
deemed appropriate. We are not expressing any opinion or views herein on the authorization, issuance,
delivery or validity of the Series 2026 Bonds. To the extent that the opinions expressed herein relate to
or are dependent upon the determination that the proceedings and actions related to the authorization,
issuance and sale of the Series 2026 Bonds are lawful and valid under the laws of the State of Florida, or
that the Series 2026 Bonds are valid and binding obligations of the City enforceable in accordance with
their terms, or that interest on the Series 2026 Bonds is excluded from the gross income of the owners
thereof for federal income tax purposes, we understand that you are relying upon the opinions delivered
on the date hereof of Squire Patton Boggs (US) LLP and no opinion is expressed herein as to such matters.
The scope of our engagement with respect to the issuance of the Series 2026 Bonds was not to
establish factual matters and, because of the wholly or partially non -legal character of many of the
determinations involved in the preparation of the Official Statement, we are not passing on and do not
assume any responsibility for, except as set forth in the following paragraph, the accuracy or completeness
of the contents of the Official Statement (including, without limitation, its appendices) and we make no
representation that we have independently verified the accuracy, completeness or fairness of such contents.
As your counsel, we have participated in the preparation of the Official Statement and in discussions and
conferences with officials of the City, Bond Counsel for the City, the Financial Advisors for the City, the
Underwriters for the issuance of the Series 2026 Bonds and Bryant Miller Olive P.A., Counsel to the
Underwriters, in which the contents of the Official Statement and related matters were discussed.
Solely on the basis of our participation in the preparation of the Official Statement, our examination
of certificates, documents, instruments and records relating to the City and the issuance of the Series 2026
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Mayor and City Commission of the
City of Miami Beach, Florida
Date of Delivery
Page 2
Bonds and the above -mentioned discussions, nothing has come to our attention which would lead us to
believe that the Official Statement, as of its date and as of the date hereof (except for the financial,
statistical and demographic data and information in the Official Statement, including, without limitation,
the appendices thereto, the information relating to DTC, its operations and the book -entry only system, [the
Insurer and the Policy,] and the information under the caption "UNDERWRITING," as to which no opinion
is expressed), contains an untrue statement of a material fact or omits to state a material fact that is
necessary to make the statements therein, in light of the circumstances under. which they were made, not
misleading.
In reaching the conclusions expressed herein we have, with your concurrence, assumed and relied
on, without independent verification, the genuineness and authenticity of all signatures not witnessed by
us, the authenticity of all documents, records, instruments and letters submitted to us as originals, the
conformity to originals of all items submitted to us as certified or photostatic copies, the legal capacity and
authority of the persons who executed such items, the accuracy of all warranties, representations and
statements of fact contained in the documents and instruments submitted to us, and the continuing accuracy
on this date of any certificates or other items supplied to us regarding the matters addressed herein. As
to questions of fact material to our opinions, we have relied upon and assumed the correctness of the public
records and certificates by, and representations of, public officials and other officers, and representatives
of the parties to this transaction. We have no actual knowledge of any factual information that would lead
us to form a legal opinion that the public records or certificates which we have relied upon contain any
untrue statement of a material fact.
The opinions expressed herein are based upon existing law as of the date hereof and we express
no opinion herein as of any subsequent date or with respect to any pending legislation. We assume no
obligation to supplement this opinion if any applicable laws change after the date hereof or if we become
aware of any facts that might change the opinions expressed herein after the date hereof. The opinions
expressed herein represent our professional judgment, are not a guarantee of result, and are limited to the
laws of the State of Florida and the United States of America.
The opinions expressed herein are furnished by us as Disclosure Counsel to our client, the City,
solely for the use of the addressee named above and only in connection with the transaction to which
reference is made above. Such opinions shall not extend to, and may not be used or relied upon by, any
other person, firm, or corporation for any purpose whatsoever without our express prior written consent.
The opinions expressed herein are limited to the matters set forth herein, and to the documents referred to
herein, and do not extend to any other agreements, documents or instruments executed by the City. No
other opinion should be inferred beyond the matters expressly stated herein.
Respectfully submitted,
LAW OFFICES OF STEVE E. BULLOCK, P.A.
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APPENDIX F
Form of Disclosure Dissemination Agent Agreement
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APPENDIX G
Specimen Municipal Bond Insurance Policy
(In the event the City determines to insure
all or a portion of the Series 2026 Bonds)
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CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds,
Series 2026
BOND PURCHASE AGREEMENT
, 2026
Mayor and City Commission
City of Miami Beach, Florida
1700 Convention Center Drive
Miami Beach, Florida 33139
Ladies and Gentlemen:
BMO Draft -5
4/9/2026
Morgan Stanley & Co. LLC (the "Senior Managing Underwriter"), acting on behalf of itself
and Jefferies LLC and Stifel, Nicolaus & Company, Incorporated (collectively, with the Senior
Managing Underwriter, the "Underwriters'), offer to enter into this Bond Purchase Agreement
(this 'Purchase Agreement") with the City of Miami Beach, Florida (the "City"), for the sale by the
City and the purchase by the Underwriters of the City's $ Resort Tax Revenue Refunding
Bonds, Series 2026 (the "Series 2026 Bonds"). This offer is made subject to acceptance by the City
prior to 5:00 p.m. (Eastern Time) on the date hereof. Upon such acceptance, this Purchase
Agreement will be in full force and effect in accordance with its terms and will be binding on the
City and the Underwriters. If this offer is not so accepted, it is subject to withdrawal by the
Underwriters upon written notice delivered to the City at any time prior to such acceptance. In
conformance with Section 218.385, Florida Statutes, as amended, the Underwriters hereby deliver
the Disclosure and Truth -in -Bonding Statement attached hereto as Exhibit "A." Capitalized terms
used in this Purchase Agreement, but not defined, are used with the meanings ascribed to them
in the Bond Resolution hereinafter described.
The Senior Managing Underwriter represents that it is authorized on behalf of itself and
the other Underwriters to enter into this Purchase Agreement and to take any other actions that
may be required on behalf of the Underwriters.
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SECTION 1.
(a) Upon the terms and conditions and upon the basis of the representations and
warranties herein set forth, the Underwriters hereby agree to purchase from the
City, and the City hereby agrees to sell to the Underwriters all (but not less than
all) of the Series 2026 Bonds for a purchase price equal to $ (which purchase
price is the aggregate principal amount of the Series 2026 Bonds of $
[plus][less] [net] original issue [premium][discount] of $ and less an
Underwriters' discount of $ ). The purchase price for the Series 2026 Bonds
shall be payable to the City in immediately available funds.
(b) In connection with the execution of this Purchase Agreement, the Senior Managing
Underwriter, on behalf of the Underwriters, has delivered an amount equal to
and No/100 Dollars ($ ) as a good faith deposit by wire transfer (the
"Good Faith Deposit") credited to the order of the City in immediately available
federal funds, which is being delivered to the City on account of the purchase price
of the Series 2026 Bonds and as security for the performance by the Underwriters
of their obligation to accept and to pay for the Series 2026 Bonds. If the City does
not accept this offer, such Good Faith Deposit shall be immediately returned to the
Senior Managing Underwriter by wire transfer credited to the order of the Senior
Managing Underwriter in the amount of the Good Faith Deposit, in federal funds
to the Senior Managing Underwriter. In the event the hereinafter defined Closing
takes place, the amount of the Good Faith Deposit shall be credited against the
purchase price of the Series 2026 Bonds pursuant to Section 1(a). In the event of
the City's failure to deliver the Series 2026 Bonds at the Closing, or if the City shall
be unable at or prior to the Closing to satisfy the conditions to the obligations of
the Underwriters contained in this Purchase Agreement (unless such conditions
are waived by the Senior Managing Underwriter), or if the obligations of the
Underwriters shall be terminated for any reason permitted by this Purchase
Agreement, the City shall immediately wire to the Senior Managing Underwriter
in federal funds the Good Faith Deposit without interest and such wire shall
constitute a full release and discharge of all claims by the Underwriters against the
City arising out of the transactions contemplated by this Purchase Agreement. In
the event that the Underwriters fail other than for a reason permitted under this
Purchase Agreement to accept and pay for the Series 2026 Bonds upon their tender
by the City at the Closing, the amount of the Good Faith Deposit shall be retained
by the City and such retention shall represent full liquidated damages and not a
penalty, for such failure and for any and all defaults on the part of the
Underwriters and the retention of such funds shall constitute a full release and
discharge of all claims, rights and damages for such failure and for any and all
such defaults. It is understood by both the City and the Underwriters that actual
damages in the circumstances as described in the preceding sentence may be
difficult or impossible to compute; therefore, the funds represented by the Good
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Faith Deposit are a reasonable estimate of the liquidated damages in this type of
situation.
(c) The Series 2026 Bonds will be issued pursuant to Chapter 166, Florida Statutes, as
amended, the City of Miami Beach Charter, and other applicable provisions of law
(collectively, the "Act"), and pursuant and subject to the terms and conditions of
Resolution No. 2015-29175 adopted by the Mayor and City Commission of the City
(collectively, the "Commission") on October 14, 2015, as amended and
supplemented from time to time and Resolution No. 2026- adopted by the
Commission on , 2026 (collectively, the "Bond Resolution"). The Series
2026 Bonds shall mature and have such other terms and provisions as are
described on Exhibit "B" hereto. Proceeds of the Series 2026 Bonds will provide
funds, together with other available funds, to (i) refund [all] $ principal
amount] of the City's Resort Tax Revenue Bonds, Series 2015 (the "Refunded
Bonds"), and (ii) pay the expenses incurred in connection with the issuance of the
Series 2026 Bonds. It shall be a condition to the obligation of the City to sell and
deliver the Series 2026 Bonds to the Underwriters, and to the obligation of the
Underwriters to purchase and accept delivery of the Series 2026 Bonds, that the
entire aggregate principal amount of the Series 2026 Bonds shall be sold and
delivered by the City and accepted and paid for by the Underwriters at the
Closing.
(d) (i) The Underwriters agree to make a bona fide public offering of substantially
all of the Series 2026 Bonds to the public at initial public offering prices not greater
than (or yields not less than) the initial public offering prices (or yields) set forth
in the Official Statement dated the date hereof (the "Official Statement"); provided,
however, that the Underwriters reserve the right to make concessions to certain
dealers, certain dealer banks and banks acting as agents and to change such initial
public offering prices as the Underwriters shall deem necessary in connection with
the marketing of the Series 2026 Bonds.
(ii) Establishment of Issue Price.
(a) The Senior Managing Underwriter, on behalf of the Underwriters,
agrees to assist the City in establishing the issue price of the Series 2026 Bonds and
shall execute and deliver to the City at Closing an "issue price" or similar
certificate, together with the supporting pricing wires or equivalent
communications, substantially in the form attached hereto as Exhibit C, with such
modifications as may be appropriate or necessary, in the reasonable judgment of
the Senior Managing Underwriter, the City and Bond Counsel, to accurately
reflect, as applicable, the sales price or prices or the initial offering price or prices
to the public of the Series 2026 Bonds. All actions to be taken by the City under
this section to establish the issue price of the Series 2026 Bonds may be taken on
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behalf of the City by the City's municipal advisor identified herein and any notice
or report to be provided to the City may be provided to the City's municipal
advisor.
(b) Except as otherwise set forth in Schedule A to Exhibit C attached
hereto, the City will treat the first price at which 10% of each maturity of the Series
2026 Bonds (the "10% test") is sold to the public as the issue price of that maturity.
At or promptly after the execution of this Bond Purchase Agreement, the Senior
Managing Underwriter shall report to the City the price or prices at which the
Underwriters have sold to the public each maturity of Series 2026 Bonds. For
purposes of this section, if Series 2026 Bonds mature on the same date but have
different interest rates, each separate CUSIP number within that maturity will be
treated as a separate maturity of the Series 2026 Bonds.
(c) If Exhibit C attached hereto includes Schedule A, the Senior
Managing Underwriter confirms that the Underwriters have offered the Series
2026 Bonds to the public on or before the date of this Bond Purchase Agreement
at the offering price or prices (the "initial offering price"), or at the corresponding
yield or yields, set forth in such Schedule A, except as otherwise set forth therein.
Such Schedule A, should it exist, also sets forth, as of the date of this Bond Purchase
Agreement, the maturities, if any, of the Series 2026 Bonds for which the 10% test
has not been satisfied and for which the City and the Senior Managing
Underwriter, on behalf of the Underwriters, agree that the restrictions set forth in
the next sentence shall apply, which will allow the City to treat the initial offering
price to the public of each such maturity as of the sale date as the issue price of
that maturity (the "hold -the -offering -price rule"). So long as the hold -the -offering -
price rule remains applicable to any maturity of the Series 2026 Bonds, the
Underwriters will neither offer nor sell unsold Series 2026 Bonds of that maturity
to any person at a price that is higher than the initial offering price to the public
during the period starting on the sale date and ending on the earlier of the
following:
(1) the close of the fifth (5th) business day after the sale date; or
(2) the date on which the Underwriters have sold at least 10%
of that maturity of the Series 2026 Bonds to the public at a price that is no
higher than the initial offering price to the public.
The Senior Managing Underwriter will advise the City promptly after the
close of the fifth (5th) business day after the sale date whether it has sold
10% of that maturity of the Series 2026 Bonds to the public at a price that is
no higher than the initial offering price to the public.
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(d) The Senior Managing Underwriter confirms that:
(i) any agreement among underwriters, any selling group
agreement and each third -party distribution agreement (to which the
Senior Managing Underwriter is a party) relating to the initial sale of the
Series 2026 Bonds to the public, together with the related pricing wires,
contains or will contain language obligating each Underwriter, each dealer
who is a member of the selling group and each broker -dealer that is a party
to such third -party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the
unsold Series 2026 Bonds of each maturity allocated to it, whether
or not the Closing Date has occurred, until either all Series 2026
Bonds of that maturity allocated to it have been sold or it is notified
by the Senior Managing Underwriter that the 10% test has been
satisfied as to the Series 2026 Bonds of that maturity, provided that,
the reporting obligation after the Closing Date may be at reasonable
periodic intervals or otherwise upon request of the Senior
Managing Underwriter, and (ii) to comply with the hold -the -
offering -price rule, if applicable, if and for so long as directed by
the Senior Managing Underwriter and as set forth in the related
pricing wires, and
(B) to promptly notify the Senior Managing Underwriter of
any sales of Series 2026 Bonds that, to its knowledge, are made to a
purchaser who is a related party to an underwriter participating in
the initial sale of the Series 2026 Bonds to the public (each such term
being used as defined below),
(C) to acknowledge that, unless otherwise advised by the
Underwriter, dealer or broker -dealer, the Senior Managing
Underwriter shall assume that each order submitted by the
Underwriter, dealer or broker -dealer is a sale to the public.
(ii) any agreement among underwriters or selling group
agreement relating to the initial sale of the Series 2026 Bonds to the public,
together with the related pricing wires, contains or will contain language
obligating each Underwriter or dealer that is a party to a third -party
distribution agreement to be employed in connection with the initial sale
of the Series 2026 Bonds to the public to require each broker -dealer that is
a party to such third -party distribution agreement to (A) report the prices
at which it sells to the public the unsold Series 2026 Bonds of each maturity
allocated to it, whether or not the Closing Date has occurred, until either
all Series 2026 Bonds of that maturity allocated to it have been sold or it is
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notified by the Senior Managing Underwriter or such Underwriter or
dealer that the 10% test has been satisfied as to the Series 2026 Bonds of
that maturity, provided that, the reporting obligation after the Closing
Date may be at reasonable periodic intervals or otherwise upon request of
the Senior Managing Underwriter or such Underwriter or dealer, and (B)
comply with the hold -the -offering -price rule, if applicable, if and for so
long as directed by the Senior Managing Underwriter or the Underwriter
or the dealer and as set forth in the related pricing wires.
(e) The City acknowledges that, in making the representations set forth
in this section, the Senior Managing Underwriter will rely on (i) the agreement of
each Underwriter to comply with the requirements for establishing issue price of
the Series 2026 Bonds, including, but not limited to, its agreement to comply with
the hold -the -offering -price rule, if applicable to the Series 2026 Bonds, as set forth
in an agreement among underwriters and the related pricing wires, (ii) in the event
a selling group has been created in connection with the initial sale of the Series
2026 Bonds to the public, the agreement of each dealer who is a member of the
selling group to comply with the requirements for establishing issue price of the
Series 2026 Bonds, including, but not limited to, its agreement to comply with the
hold -the -offering -price rule, if applicable to the Series 2026 Bonds, as set forth in a
selling group agreement and the related pricing wires, and (iii) in the event that
an Underwriter or dealer who is a member of the selling group is a party to a third -
party distribution agreement that was employed in connection with the initial sale
of the Series 2026 Bonds to the public, the agreement of each broker -dealer that is
a party to such agreement to comply with the requirements for establishing issue
price of the Series 2026 Bonds, including, but not limited to, its agreement to
comply with the hold -the -offering -price rule, if applicable to the Series 2026
Bonds, as set forth in the third -party distribution agreement and the related
pricing wires. The City further acknowledges that each Underwriter shall be
solely liable for its failure to comply with its agreement regarding the
requirements for establishing issue price of the Series 2026 Bonds, including, but
not limited to, its agreement to comply with the hold -the -offering -price rule, if
applicable to the'Series 2026 Bonds, and that no Underwriter shall be liable for the
failure of any other Underwriter, or of any dealer who is a member of a selling
group, or of any broker -dealer that is a party to a third -party distribution
agreement, to comply with its corresponding agreement to comply with the
requirements for establishing issue price of the Series 2026 Bonds, including, but
not limited to, its agreement to comply with the hold -the -offering -price rule, if
applicable to the Series 2026 Bonds.
(f) The Underwriters acknowledge that sales of any Series 2026 Bonds
to any person that is a related party to an underwriter participating in the initial
sale of the Series 2026 Bonds to the public (each such term being used as defined
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below) shall not constitute sales to the public for purposes of this section. Further,
for purposes of this section:
(i) "public" means any person other than an underwriter or a
related party,
(ii) "underwriter" means (A) any person that agrees pursuant
to a written contract with the City (or with the lead
underwriter to form an underwriting syndicate) to
participate in the initial sale of the Series 2026 Bonds to the
public and (B) any person that agrees pursuant to a written
contract directly or indirectly with a person described in
clause (A) to participate in the initial sale of the Series 2026
Bonds to the public (including a member of a selling group
or a party to a third -party distribution agreement
participating in the initial sale of the Series 2026 Bonds to
the public),
(iii) a purchaser of any of the Series 2026 Bonds is a "related
party" to an underwriter if the underwriter and the
purchaser are subject, directly or indirectly, to (A) more
than 50% common ownership of the voting power or the
total value of their stock, if both entities are corporations
(including direct ownership by one corporation of another),
(B) more than 50% common ownership of their capital
interests or profits interests, if both entities are partnerships
(including direct ownership by one partnership of another),
or (C) more than 50% common ownership of the value of
the outstanding stock of the corporation or the capital
interests or profit interests of the partnership, as applicable,
if one entity is a corporation and the other entity is a
partnership (including direct ownership of the applicable
stock or interests by one entity of the other), and
(iv) "sale date" means the date of execution of this Bond
Purchase Agreement by all parties.
(e) The Official Statement shall be provided for distribution, at the expense of the City,
in such quantity as may be requested by the Underwriters no later than the earlier
of (i) seven (7) business days after the date hereof, or (ii) one (1) business day prior
to the Closing date, in order to permit the Underwriters to comply with Rule 15c2-
12 (the 'Rule") of the Securities and Exchange Commission ("SEC"), and the
applicable rules of the Municipal Securities Rulemaking Board ("MSRB"), with
respect to distribution of the Official Statement. The Senior Managing Underwriter
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agrees to file the Official Statement with the Electronic Municipal Market Access
system ("EMMA") (accompanied by a completed Form G-32) by the date of
Closing. The filing of the Official Statement with EMMA shall be in accordance
with the terms and conditions applicable to EMMA.
(f) From the date hereof until the earlier of (i) ninety days from the "end of the
underwriting period" (as defined in the Rule), or (ii) the time when the Official
Statement is available to any person from the MSRB (but in no case less than
twenty-five (25) days following the end of the underwriting period), if any event
occurs or a condition or circumstance exists which may make it necessary to
amend or supplement the Official Statement in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, the party discovering such event, condition or occurrence shall notify
the other party and if, in the reasonable opinion of the City or the reasonable
opinion of the Senior Managing Underwriter, such event requires the preparation
and publication of an amendment or supplement to the Official Statement, the
City, at its expense, will promptly prepare an appropriate amendment or
supplement thereto, in a form and in a manner reasonably approved by the Senior
Managing Underwriter (and file, or cause to be filed, the same with the MSRB, and
mail such amendment or supplement to each record owner of the Series 2026
Bonds) so that the statements in the Official Statement, as so amended or
supplemented, will not, in light of the circumstances under which they were made,
be misleading. Each party will promptly notify the other parties of the occurrence
of any event of which it has knowledge or the discovery of such conditions or
circumstance, which, in its reasonable opinion, is an event described in the
preceding sentence. Notwithstanding the foregoing, if prior to the Closing either
the City or the Underwriters hereto does not in good faith approve the form and
manner of such supplement or amendment, the other may terminate this Purchase
Agreement. The parties agree to cooperate in good faith with regard to the form
and manner of the supplement or amendment to the Official Statement. Unless
the City is otherwise notified by the Underwriters in writing on or prior to the date
of Closing, the end of the underwriting period for the Series 2026 Bonds for all
purposes of the Rule and this Purchase Agreement is the date of Closing. In the
event the written notice described in the preceding sentence is given by the
Underwriters to the City, such written notice shall specify the date after which no
participating underwriter, as such term is defined in the Rule, remains obligated
to deliver Official Statements pursuant to paragraph (b)(4) of the Rule.
(g) The City hereby approves and authorizes the delivery and distribution of the
Preliminary Official Statement dated 2026 (the 'Preliminary Official
Statement") and the execution, delivery and distribution of the Official Statement
in substantially the form of the Preliminary Official Statement, together with such
other changes, amendments or supplements as shall be made and approved in
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writing by the Senior Managing Underwriter and the City prior to the Closing in
connection with the public offering and sale of the Series 2026 Bonds.
SECTION 2. The City represents and warrants to and agrees with the Underwriters as
follows:
(a) The Bond Resolution was adopted by the Commission at meetings duly called and
held in open session upon requisite prior public notice pursuant to the laws of the
State of Florida and the standing resolutions and rules of procedure of the
Commission. The City has full right, power and authority to adopt the Bond
Resolution. On the date hereof, the Bond Resolution is, and, at the Closing shall
be, in full force and effect, and no portions thereof have been or shall have been
supplemented, repealed, rescinded or revoked. The Bond Resolution constitute
the legal, valid and binding obligations of the City, enforceable in accordance with
their terms. The Bond Resolution creates a lien upon and pledge of the Pledged
Funds for the payment of principal and interest on the Series 2026 Bonds and any
additional bonds heretofore or hereinafter issued under the Bond Resolution (the
"Parity Bonds").
(b) As of their respective dates and, with respect to the Official Statement, at the time
of Closing, the statements and information contained in the Preliminary Official
Statement and the Official Statement are and will be accurate in all material
respects for the purposes for which their use is authorized, and do not and will
not contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. In addition, any amendments to the
Preliminary Official Statement and the Official Statement prepared and furnished
by the City pursuant hereto will not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The
Series 2026 Bonds, the Bond Resolution and the Disclosure Dissemination Agent
Agreement relating to the Series 2026 Bonds (the "Continuing Disclosure
Agreement") conform to the descriptions thereof set forth in the Official Statement.
(c) The City is not in breach of or default under any applicable constitutional
provision, law or administrative regulation of the State of Florida or the United
States, or any agency or department of either, or any applicable judgment or decree
or any loan agreement, indenture, bond, note, resolution, agreement or other
instrument to which the City is a party or to which the City or any of its properties
or other assets is otherwise subject, and no event has occurred and is continuing
which, with the passage of time or the giving of notice, or both, would constitute
a default or event of default under any such instrument, in any such case to the
extent that the same would have a material and adverse effect upon the business
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or properties or financial condition of the City, including the City's receipts of
Resort Tax Revenues in the amount contemplated by the Official Statement; and
the execution and delivery of the Series 2026 Bonds, the Continuing Disclosure
Agreement and this Purchase Agreement and the adoption of the Bond
Resolution, and compliance with the provisions on the City's part contained in
each, will not conflict with or constitute a breach of or default under any
constitutional provision, law, administrative regulation, judgment, decree, loan
agreement, indenture, bond, note, resolution, agreement or other instrument to
which the City is a party or to which the City or any of its properties or other assets
is otherwise subject, nor will any such execution, delivery, adoption or compliance
result in the creation or imposition of any lien, charge or other security interest or
encumbrance of any nature whatsoever upon any of the properties or the assets of
the City under the terms of any such law, regulation or instrument, except as
provided or permitted by the Series 2026 Bonds and the Bond Resolution.
(d) As of its date, the Preliminary Official Statement was deemed "final" (except for
permitted omissions) by the City for purposes of paragraph (b)(1) of the Rule.
(e) On the date hereof, the Commission is the governing body of the City and the City
is, and will be on the date of the Closing, duly organized and validly existing as a
municipality under the Act, with the power and authority set forth therein.
(f) On the date hereof, the City (i) is not subject of an order or rehabilitation,
liquidation or dissolution under the laws of the State of Florida or federal law, (ii)
is not the subject of a case or other proceeding seeking liquidation, reorganization
or similar relief under any bankruptcy, insolvency or other similar laws of the State
of Florida or federal law, (iii) has not made an assignment for the benefit of
creditors, (iv) has not failed to generally pay its debts as they become due, (v) is
not subject to a debt moratorium or debt restructuring or comparable restriction
with respect to payment of any debt, (vi) has not become insolvent or, (vii) is not
the subject of a writ of attachment, execution, restraint or similar process against
all or any substantial part of its assets, which results in the entry of an order for
relief.
(g) The City has full right, power and authority (i) to issue, sell and deliver the Series
2026 Bonds to the Underwriters as described herein, (ii) to provide funds to refund
the Refunded Bonds to enter into this Purchase Agreement and the Continuing
Disclosure Agreement (collectively, the "Bond Documents"), (iii) to issue and
deliver the Series 2026 Bonds as provided in this Purchase Agreement and the
Bond Resolution, (iv) to apply the proceeds of the sale of the Series 2026 Bonds for
the purposes described herein and in the Official Statement, (v) to execute and
deliver the Bond Documents, (vi) to collect the Resort Tax Revenues, and (vii) to
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carry out and consummate the transactions contemplated by the aforesaid
documents.
(h) At meetings of the Commission that were duly called and at which a quorum was
present and acting throughout, the Commission approved the execution and
delivery of the Series 2026 Bonds and the Bond Documents; authorized the
execution and delivery of the Official Statement; and authorized the use of the
Official Statement in connection with the public offering of the Series 2026 Bonds.
The City represents that it will have no bonds or other indebtedness outstanding
that are secured by the Resort Tax Revenues, other than as described in the Official
Statement. All conditions and requirements of the Bond Resolution relating to the
issuance of the Series 2026 Bonds have been complied with or fulfilled, or will be
complied with or fulfilled on the date of Closing.
(i) Since September 30, 2025, there has been no material adverse change in the
financial position, results of operations or condition, financial or otherwise, of the
City other than as disclosed in the Official Statement and the City has not incurred
liabilities that would materially adversely affect its ability to discharge its
obligations under the Bond Resolution or the Bond Documents, direct or
contingent, other than as disclosed in the Official Statement.
(j) No authorization, approval, consent or license of any governmental body or
authority, not already obtained, is required for the valid and lawful execution and
delivery by the City of the Series 2026 Bonds, the Bond Documents, the Official
Statement, and the adoption of the Bond Resolution, and the performance of its
obligations thereunder or as contemplated thereby; provided, however, that no
representation is made concerning compliance with the registration requirements
of the federal securities laws or the securities or Blue Sky laws of the various states.
(k) The City is not and has not been in default on any bond issued since December 31,
1975 that would be considered material by a reasonable investor, and the City has
not served as a conduit issuer of bonds since such date.
(1) Except as disclosed in the Official Statement, there is no claim, action, suit,
proceeding, inquiry or investigation, at law or in equity, before or by any court,
governmental agency, or public board or body, pending or, to the best of its
knowledge, threatened: (i) contesting the corporate existence or powers of the
Commission, or the titles of the officers of the Commission to their respective
offices; (ii) seeking to prohibit, restrain or enjoin the sale, issuance or delivery of
the Series 2026 Bonds or the collection of the Resort Tax Revenues, pledged to pay
the principal of and interest on the Series 2026 Bonds in the manner and to the
extent provided in the Bond Resolution, or the application of the proceeds of the
Series 2026 Bonds or in which an unfavorable decision, ruling or finding would
materially adversely affect the financial position of the City or the validity or
1538 of 2461
enforceability of the Series 2026 Bonds, the Bond Resolution, or the Bond
Documents; (iii) contesting in any way the completeness or accuracy of the Official
Statement; or (iv) adversely affecting the exclusion of interest on the Series 2026
Bonds from gross income for federal income tax purposes.
(m) When duly executed and delivered, the Series 2026 Bonds and the Bond
Documents will have been duly authorized, executed, issued and delivered and
will constitute valid and binding obligations of the City, enforceable in accordance
with their respective terms, except insofar as the enforcement thereof may be
limited by bankruptcy, insolvency or similar laws relating to the enforcement of
creditors' rights.
(n) The City will furnish such information, execute such instruments and take such
other action in cooperation with the Senior Managing Underwriter as the Senior
Managing Underwriter may reasonably request to: (i) qualify the Series 2026
Bonds for offer and sale under the 'blue sky" or other securities laws and
regulations of such states and other jurisdictions of the United States of America
as the Senior Managing Underwriter may designate; (ii) determine the eligibility
of the Series 2026 Bonds for investment under the laws of such states and other
jurisdictions; and (iii) continue such qualifications in effect so long as required for
the distribution of the Series 2026 Bonds; provided that the City will not be
required to qualify to do business or submit to service of process in any such
jurisdiction.
(o) The City has not been notified of any listing or the proposed listing of the City by
the Internal Revenue Service as an issuer whose arbitrage certifications may not
be relied upon.
(p) Any certificate signed by any official of the City and delivered to the Underwriters
will be deemed to be a representation by the City to the Underwriters as to the
statements made therein.
(q) The City will undertake, pursuant to the Continuing Disclosure Agreement, to
provide or cause to be provided to the MSRB certain annual financial information
and collection data as to the City and the Resort Tax Revenues, and certain notices
of material events, as more fully set forth in the Continuing Disclosure Agreement.
A description of the undertaking will be set forth in the Official Statement.
(r) The Financial Statements included in the Preliminary Official Statement and the
Official Statement have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis with that of the audited
combined financial statements of the City and fairly present the financial condition
and results of the operations of the City at the dates and for the periods indicated.
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(s) The City will provide to the rating agencies rating the Series 2026 Bonds
appropriate periodic credit information necessary for maintaining the ratings on
the Series 2026 Bonds.
(t) Except as disclosed in the Official Statement, within the last five (5) years, the City
has not failed to comply in all material respects with any continuing disclosure
undertaking made by it pursuant to the Rule in connection with outstanding bond
issues for which the City has agreed to undertake continuing disclosure
obligations.
(u) At the time of Closing, the City will be in compliance in all respects with the
covenants and agreements contained in the Bond Resolution and no event of
default, nor an event which, with the lapse of time or giving of notice, or both,
would constitute an event of default under the Bond Resolution will have occurred
or be continuing.
(v) The City will not take or omit to take any action which action or omission will in
any way cause the proceeds from the sale of the Series 2026 Bonds to be applied in
a manner contrary to that provided for or permitted in the Bond Resolution and
as described in the Official Statement.
(w) No representation or warranty by the City in this Purchase Agreement, nor any
statement, certificate, document or exhibit furnished to or to be furnished by the
City pursuant to this Purchase Agreement contains, or will contain on the Closing
date, any untrue statement of material fact.
N Between the date of this Purchase Agreement and the date of Closing, the City will
not, without the prior written consent of the Senior Managing Underwriter, offer
or issue any bonds, notes or other obligations for borrowed money, and the City
will not incur any material liabilities, direct or contingent, nor will there be any
adverse change of a material nature in the financial position, results of operations
or condition, financial or otherwise, of the City, other than (i) as contemplated by
the Official Statement, or (ii) in the ordinary course of business.
(y) The City will cooperate and take such actions as may be reasonably requested by
the Underwriters to facilitate the timely consummation of the transaction
contemplated by the Bond Resolution and this Purchase Agreement, including
without limitations, the conditions and items set forth in Section 5 hereof.
SECTION 3. On or before the acceptance by the City of this Purchase Agreement, the
Underwriters shall receive from the City certified copies of the Bond Resolution.
SECTION 4. At 10:00 a.m. (Eastern Time) on , 2026, or at such earlier or later time
or date as the parties hereto mutually agree upon (the "Closing"), the City will cause to be
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delivered to the Underwriters, at the offices of Squire Patton Boggs (US) LLP ("Bond Counsel"),
in the City of Miami, Florida or at such other place upon which the parties hereto may agree, the
documents mentioned in Section 5(b) of this Purchase Agreement and shall release the Series 2026
Bonds, in the form of one typewritten, fully registered bond with a CUSIP identification number
thereon for each maturity of the Series 2026 Bonds, duly executed and authenticated and
registered in the name of Cede & Co., as nominee for DTC, through the DTC FAST System to the
Underwriters. At the Closing, the Underwriters shall evidence their acceptance of delivery of the
Series 2026 Bonds and pay the purchase price of the Series 2026 Bonds as set forth in Section 1(a)
of this Purchase Agreement.
SECTION 5. The Underwriters have entered into this Purchase Agreement in reliance
upon the representations, warranties, and agreements of the City herein and the performance by
the City of its obligations hereunder, both as of the date hereof and as of the date of Closing. The
City's and the Underwriters' obligations under this Purchase Agreement are and will be subject
to the following further conditions:
(a) at the time of Closing: (i) the Bond Resolution and the Bond Documents will be in
full force and effect and will not have been amended, modified or supplemented,
except as may have been agreed to in writing by the Senior Managing
Underwriter; (ii) the proceeds of the sale of the Series 2026 Bonds shall be applied
as described in the Official Statement; and (iii) the Commission shall have duly
adopted and there shall be in full force and effect, resolutions as, in the opinion of
Bond Counsel, shall be necessary in connection with the transactions
contemplated hereby;
(b) at or prior to the Closing, the Underwriters shall receive the following documents:
(i) the opinion of Bond Counsel with respect to the Series 2026 Bonds, dated
the date of Closing, substantially in the form attached to the Official
Statement as Appendix D, either addressed to the Underwriters and the
City or accompanied by a letter addressed to the Underwriters indicating
that it may rely on said opinion as if it were addressed to them;
a supplemental opinion of Bond Counsel, dated the date of the Closing and
addressed to the Underwriters to the effect that: (A) they have reviewed
the statements in the Preliminary Official Statement and the Official
Statement under the captions "INTRODUCTION", "PLAN OF
REFUNDING", "DESCRIPTION OF THE SERIES 2026 BONDS" (except for
information under the subheading "Book -Entry Only System" and
"Discontinuance of Book -Entry Only System"), and "SECURITY AND
SOURCES OF PAYMENT' (except for the information under the
subheading "Pledged Funds -Resort Tax Levy and Collection"), and believe
that, insofar as such statements purport to summarize certain provisions
of the Series 2026 Bonds and the Bond Resolution, such statements present
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an accurate summary of such provisions; (B) they have reviewed the
statements in the Preliminary Official Statement and the Official Statement
under the caption "TAX MATTERS" and believe that such statements are
accurate; [and](C) the Series 2026 Bonds are exempt from the registration
requirements of the Securities Act of 1933, as amended (the "1933 Act") and
the Bond Resolution is exempt from qualification under the Trust
Indenture Act of 1939, as amended (the "1939 Act"); [and (D) to the effect
that the Refunded Bonds shall not be deemed to be Outstanding;]
the opinion of the Law Offices of Steve E. Bullock, P.A., Disclosure Counsel
to the City, dated the date of Closing and either addressed to the
Underwriters and the City or accompanied by a letter addressed to the
Underwriters indicating that they may rely on said opinion as if it were
addressed to them, in form and substance acceptable to the City and the
Underwriters, (i) to the effect that nothing has come to its attention which
leads it to believe that the Preliminary Official Statement and the Official
Statement (except for the financial, statistical and demographic data and
information in the Preliminary Official Statement and Official Statement,
including, without limitation, the appendices thereto, and the information
relating to DTC, its operations and the book -entry system, as to which no
opinion is expressed) contains any untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which
they were made, not misleading, and (ii) the Continuing Disclosure
Agreement complies, in all material respects, with the requirements of Rule
15(c)2-12(b)(5);
(iv) the opinion of the City Attorney, dated the date of Closing and addressed
to the Underwriters and the City, to the effect that: (A) the Commission is
the governing body of the City and the City is validly existing as a
municipality under the Act, with all corporate power necessary to conduct
the operations described in the Official Statement and to carry out the
transactions contemplated by this Purchase Agreement; (B) the City has
obtained all governmental consents, approvals and authorizations
necessary for execution and delivery of the Bond Documents, for issuance
of the Series 2026 Bonds and for execution and delivery of the Preliminary
Official Statement and the Official Statement and consummation of the
transactions contemplated thereby and hereby; (C) the City has full legal
right, power and authority to pledge and grant a lien on the Pledged Funds
for the security of the Series 2026 Bonds, [on parity and equal status with
the Parity Bonds as to Pledged Funds]; (D) the Commission has duly
adopted the Bond Resolution and approved the form, execution,
distribution and delivery of the Preliminary Official Statement and Official
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Statement; (E) the Series 2026 Bonds and the Bond Documents have each
been duly authorized, executed and delivered by the City and, assuming
due authorization, execution and delivery thereof by the other parties
thereto, if any, each constitutes a valid and binding agreement of the City,
enforceable in accordance with its terms; (F) the information in the
Preliminary Official Statement and Official Statement with respect to the
City (excluding financial, statistical and demographic information and
information relating to DTC, as to which no opinion need be expressed) is,
_ to the best knowledge of such counsel after due inquiry with respect
thereto, correct in all material respects and does not omit any matter
necessary in order to make the statements made therein regarding such
matters, in light of the circumstances under which such statements are
made, not misleading, and, based on its participation as counsel to the City,
such counsel has no reason to believe that the Preliminary Official
Statement of the Official Statement (excluding financial, statistical and
demographic information (and information relating to DTC) contained as
of its date or contains any untrue statement of a material fact or omitted or
omits to state any material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading;
(G) except as disclosed in the Preliminary Official Statement and Official
Statement under the caption "LITIGATION," there is no action, suit,
proceeding or investigation at law or in equity before or by any court,
public board or body pending or, to the best of knowledge of such counsel,
threatened, against or affecting the Commission or the City challenging the
validity of the Series 2026 Bonds, the Bond Resolution, the Bond
Documents, or any of the transactions contemplated thereby or by the
Official Statement, or challenging the existence of the City or the respective
powers of the several offices of the officials of the City or the titles of the
officials holding their respective offices, or challenging the City's levy or
collection of the Resort Tax Revenues or the pledge of the Pledged Funds
for the payment of the Series 2026 Bonds in the manner and to the extent
provided in the Bond Resolution, nor is there any basis therefor; (H) the
execution and delivery of the Bond Documents and the issuance of the
Series 2026 Bonds, and compliance with the provisions thereof, under the
circumstances contemplated thereby, do not and will not in any material
respect conflict with or constitute on the part of the City a breach of or
default under, or result in the creation of a lien on any property of the City
(except as contemplated therein) pursuant to any note, mortgage, deed of
trust, indenture, resolution or other agreement or instrument to which the
Commission or the City is a party, or any existing law, regulation, court
order or consent decree to which the Commission or the City is subject;
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(v) an opinion of counsel for the Underwriters covering such matters and in
such form reasonably acceptable to the Senior Managing Underwriter;
(vi) a certificate, dated the date of Closing, signed on behalf of the City by the
Mayor and the City Manager of the City, setting forth such matters as the
Senior Managing Underwriter may reasonably require, including (a) that
each of the representations of the City contained in Section 2 hereof were
true and accurate in all material respects on the date when made, has been
true and accurate in all material respects at all times since, and continues
to be true and accurate in all material respects on the date of Closing as if
made on such date; and (b) stating that to the best of their knowledge, no
event affecting the City, the refunding of the Refunded Bonds, the
collection of the Resort Tax Revenues or the Series 2026 Bonds has occurred
since the date of the Preliminary Official Statement and the date of the
Official Statement which should be disclosed therein for the purpose for
which it is used or which is necessary to disclose therein in order to make
the statements and information therein not misleading in any material
respect as of the date of Closing;
(vii) a customary signature certificate, dated the date of Closing, signed on
behalf of the City by the City Clerk of the City;
(viii) [evidence of municipal bond insurance;)
(ix) letters from Moody's Investors Service, Inc. ("Moody's") and S&P Global
Inc. ("S&P") addressed to the City, to the effect that the Series 2026 Bonds
have been assigned ratings of " " ( outlook) and " " (
outlook), respectively, which ratings shall be in effect as of the Closing
date;
(x) a customary authorization and incumbency certificate, dated the date of
Closing, signed by authorized officers of the Bond Registrar;
(xi) copies of the Blue Sky Memorandum prepared by Counsel to the
Underwriters, indicating the jurisdictions in which the Series 2026 Bonds
may be sold in compliance with the "blue sky" or securities laws of such
jurisdictions;
(xii) an executed copy of the Continuing Disclosure Agreement;
(xiii) such additional documents as may be required by the Bond Resolution to
be delivered as a condition precedent to the issuance of the Series 2026
Bonds; and
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(xiv) such additional legal opinions, proceedings, instruments and other
documents as the Senior Managing Underwriter, Underwriters' Counsel
or Bond Counsel may reasonably request.
All of the opinions, letters, certificates, instruments and other documents mentioned in
this Purchase Agreement shall be deemed to be in compliance with the provisions of this Purchase
Agreement if, but only if, in the reasonable judgment of the Senior Managing Underwriter and
Underwriters' Counsel, they are satisfactory in form and substance.
SECTION 6. If the City shall be unable to satisfy the conditions to the Underwriters'
obligations contained in this Purchase Agreement or if the Underwriters' obligations are
terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall
terminate and the Underwriters and the City shall have no further obligation hereunder, except
that the respective obligations of the parties hereto provided in Section 7 hereof shall continue in
full force and effect and the City shall return the Good Faith Deposit as provided in Section 1(b).
SECTION 7.
(a) The following costs and expenses relating to the transaction contemplated or
described in this Purchase Agreement shall be borne and paid by the City
regardless of whether the transaction contemplated herein shall close: printing of
Series 2026 Bonds; printing or copying of closing documents (including the
Preliminary Official Statement and the Official Statement) in such reasonable
quantities as the Underwriters may request; fees and disbursements of Bond
Counsel; fees and disbursements of the City's Financial Advisor; any accounting
fees; the Bond Registrar fees; fees of the rating agencies; and any other fees as
described in Schedule A-1 hereto. The City shall pay any expenses incurred by the
Underwriters on behalf of the City and its staff in connection with the marketing,
issuance and delivery of the Series 2026 Bonds, including, but not limited to, meals,
transportation and lodging of the City's employees and representatives; the City's
obligations in regard to these expenses survive even if the underlying transaction
fails to close or consummate.
(b) The Underwriters will pay the expenses described in Schedule A-1 hereto,
including: (i) the fees and disbursements of Underwriters' Counsel; (ii) all
advertising expenses in connection with the public offering of the Series 2026
Bonds; and (iii) the cost of preparing, printing and distributing the Blue Sky
Memorandum, if any, and the filing fees, if any, required by the "blue sky" laws of
various jurisdictions.
SECTION 8. The City acknowledges and agrees that (i) the purchase and sale of the Series
2026 Bonds pursuant to this Purchase Agreement is an arm's-length commercial transaction
between the City and the Underwriters; (ii) in connection with such transaction, including the
process leading thereto, the Underwriters are acting solely as a principal and not as an agent or a
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fiduciary of the City; (iii) the Underwriters have neither assumed an advisory or fiduciary
responsibility in favor of the City with respect to the offering of the Series 2026 Bonds or the
process leading thereto (whether or not the Underwriters, or any affiliate of the Underwriters,
have advised or is currently advising the City on other matters) nor has it assumed any other
obligation to the City except the obligations expressly set forth in this Purchase Agreement, (iv)
the Underwriters have financial and other interests that differ from those of the City; and (v) the
City has consulted with its own legal and financial advisors to the extent it deemed appropriate
in connection with the offering of the Series 2026 Bonds.
SECTION 9. The Underwriters shall have the right to cancel their obligations hereunder
if the Senior Managing Underwriter notifies the City in writing of the Underwriters' election to
do so between the date hereof and the Closing if, at any time hereafter and on or prior to the
Closing:
(a) A committee of the House of Representatives or the Senate of the Congress of the
United States or the legislature of the State of Florida shall have pending before it
legislation, or a tentative decision with respect to legislation shall be reached by a
committee of the House of Representatives or the Senate of the Congress of the
United States of America, or legislation shall be favorably reported by such a
committee or be introduced, by amendment or otherwise, in, or be passed by, the
House of Representatives or the Senate, or recommended to the Congress of the
United States of America for passage by the President of the United States of
America, or be enacted by the Congress of the United States of America, or an
announcement or a proposal for any such legislation shall be made by a member
of the House of Representatives or the Senate of the Congress of the United States,
or a decision by a court established under Article III of the Constitution of the
United States of America or the Tax Court of the United States of America shall be
rendered, or a ruling, regulation, or order of the Treasury Department of the
United States of America or the Internal Revenue Service shall be made or
proposed having the purpose or effect of imposing federal or state income
taxation, or any other event shall have occurred which results in or proposes the
imposition of federal or state income taxation, upon revenues or other income of
the general character to be derived by the City, any of its affiliates, state and local
governmental units or by any similar body or upon interest received on
obligations of the general character of the Series 2026 Bonds which, in the Senior
Managing Underwriter's opinion, materially and adversely affects the market
price of the Series 2026 Bonds.
(b) Any legislation, ordinance, rule, or regulation shall be introduced in or be enacted
by any governmental body, department, or agency of the United States or of any
state, or a decision by any court of competent jurisdiction within the United States
or any state shall be rendered which, in the Senior Managing Underwriter's
reasonable opinion, materially adversely affects the market price or marketability
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of the Series 2026 Bonds or the ability of the Underwriters to enforce contracts for
the sale of the Series 2026 Bonds.
(c) A stop order, ruling, regulation, or official statement by, or on behalf of, the SEC
or any other governmental agency having jurisdiction of the subject matter shall
be issued or made to the effect that the issuance, offering, or sale of obligations of
the general character of the Series 2026 Bonds, or the issuance, offering, or sale of
the Series 2026 Bonds, including all the underlying obligations, as contemplated
hereby or by the Official Statement, is in violation or would be in violation of any
provisions of the federal securities laws as amended and then in effect, including
without limitation the registration provisions of the 1933 Act, or the registration
provisions of the Securities Exchange Act of 1934 (the "1934 Act"), or the
qualification provisions of the 1939 Act.
(d) Legislation shall be introduced by amendment or otherwise in, or be enacted by,
the Congress of the United States of America, or a decision by a court of the United
States of America shall be rendered to the effect that obligations of the general
character of the Series 2026 Bonds, including all the underlying obligations, are not
exempt from registration under or from other requirements of the 1933 Act or the
1934 Act, or with the purpose or effect of otherwise prohibiting the issuance,
offering, or sale of obligations of the general character of the Series 2026 Bonds, as
contemplated hereby or by the Official Statement.
(e) Any event shall have occurred, or information shall have become known, which,
in the Senior Managing Underwriter's reasonable opinion, makes untrue in any
material respect any representation by or certificate of the City hereunder, or any
statement or information furnished to the Underwriters by the City for use in
connection with the marketing of the Series 2026 Bonds or any material statement
or information contained in the Official Statement as originally circulated contains
an untrue statement of a material fact or omits to state a material fact necessary in
order to make the statements made, in light of the circumstances under which they
were made, not misleading; provided, however, that the City shall be granted a
reasonable amount of time in which to cure any such untrue or misleading
statement or information.
(f) Additional material restrictions not in force as of the date hereof shall have been
imposed upon trading in securities generally by any governmental authority or by
any national securities exchange.
(g) The New York Stock Exchange or any other national securities exchange, or any
governmental authority, shall impose, a general suspension of trading or, as to
Series 2026 Bonds or obligations of the general character of the Series 2026 Bonds,
any material restrictions not now in force, or increase materially those now in
20
1547 of 2461
force, with respect to the extension of credit by, or a change to the net capital
requirements of, the Underwriters.
(h) A general banking moratorium or suspension or limitation of banking services
shall have been established by federal, Florida or New York authorities or a major
financial crisis or material disruption in commercial banking or securities
settlement or clearance services shall have occurred.
(i) Any proceeding shall be pending, or to the knowledge of the Underwriters,
threatened, to restrain, enjoin, or otherwise prohibit the issuance, sale, or delivery
of the Series 2026 Bonds by the City or the purchase, offering, sale, or distribution
of the Series 2026 Bonds by the Underwriters, or for any investigatory or other
proceedings under any federal or state securities laws or the rules and regulations
of the Financial Industry Regulatory Authority relating to the issuance, sale, or
delivery of the Series 2026 Bonds by the City or the purchase, offering, sale, or
distribution of the Series 2026 Bonds by the Underwriters.
(j) There shall have occurred any new outbreak or escalation of hostilities, any
declaration by the United States of war or any national or international calamity
or crisis, the effect of such outbreak, escalation, declaration, calamity or crisis being
such as would cause a major disruption in the municipal bonds market and as, in
the reasonable judgment of the Senior Managing Underwriter, would materially
adversely affect the market price or marketability of the Series 2026 Bonds or the
ability of the Underwriters to enforce contracts for the sale of the Series 2026
Bonds.
(k) Prior to Closing, any of the rating agencies which have rated the Series 2026 Bonds
shall inform the City or the Underwriters that the Series 2026 Bonds will be rated
lower than the respective rating published in the Official Statement or there shall
have occurred or any notice shall have been given of any downgrading,
suspension, withdrawal, or negative change of credit watch status by any national
rating service to any Bonds.
(I) There shall have occurred, after the signing hereof, either a financial crisis with
respect to the City or any agency or political subdivision thereof or proceedings
under the bankruptcy laws of the United States or the State of Florida shall have
been instituted by the City, in either case the effect of which, in the reasonable
judgment of the Senior Managing Underwriter, is such as to materially and
adversely affect the market price or the marketability of the Series 2026 Bonds or
the ability of the Underwriters to enforce contracts of the sale of the Series 2026
Bonds.
SECTION 10. Any notice or other communication to be given under this Purchase
Agreement may be given by delivering the same in writing as follows:
21
1548 of 2461
To the City at:
City of Miami Beach, Florida
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Jason D. Greene, Chief Financial Officer
To the Underwriters (as the Senior Managing Underwriter, the representative on behalf
of the Underwriters) at:
Morgan Stanley & Co. LLC
1200 S. Pine Island Road, Suite 800
Plantation, Florida 33324
Attention: J. W. Howard, Executive Director
SECTION 11. This Purchase Agreement is made solely for the benefit of the City and the
Underwriters (including the successors or assigns of the Underwriters), and no other person,
partnership, association or corporation shall acquire or have any right hereunder or by virtue
hereof.
SECTION 12. All the representations, warranties and agreements of the Underwriters
and the City in this Purchase Agreement shall remain operative and in full force and effect and
shall survive delivery of and payment for the Series 2026 Bonds hereunder regardless of any
investigation made by or on behalf of the Underwriters.
SECTION 13. This Purchase Agreement shall be governed by and construed in
accordance with the laws of the State of Florida.
SECTION 14. For the purposes of this Purchase Agreement, "business day" means any
day on which the New York Stock Exchange is open for trading.
SECTION 15. Each party represents to the other party on the date on which it enters into
this Purchase Agreement that:
Non -Reliance. It is acting for its own account, and it has made its own independent
decisions to enter into this Purchase Agreement and as to whether this Purchase Agreement is
appropriate or proper for it based upon its own judgement and upon advice from such advisors
as it has deemed necessary. It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into this Purchase Agreement; it
being understood that information and explanations related to the terms and conditions of this
Purchase Agreement shall not be considered investment advice or a recommendation to enter
into this Purchase Agreement. It has not received from the other party any assurance or guarantee
as to the expected results of this Purchase Agreement.
1549 of 2461
Assessment and Understanding. It is capable of assessing the merits of and understanding
(on its own behalf or through independent professional advice), and understands and accepts,
the terms, conditions and risks of this Purchase Agreement. It is also capable of assuming, and
assumes, the risks of this Purchase Agreement.
Status of Parties. Neither party hereto is acting as a fiduciary for or as an advisor or agent
to the other party hereto with respect to this Purchase Agreement. The City acknowledges and
agrees that: (i) in connection with the discussions, undertakings, and procedures leading up to
the consummation of the transaction represented in this Purchase Agreement, the Underwriters
are and have been acting solely as underwriters; (ii) the City has consulted its own legal, financial,
and other advisors to the extent it has deemed appropriate.
SECTION 16. This Purchase Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same agreement; such counterparts may be delivered by facsimile transmission.
23
1550 of 2461
If the foregoing is acceptable to you, please sign below and this Purchase Agreement will
become a binding agreement between the City and the Underwriters.
Accepted and confirmed as of the date
first above written:
CITY OF MIAMI BEACH, FLORIDA
By:
Name: Steven Meiner
Title: Mayor
Very truly yours,
MORGAN STANLEY & CO. LLC, on behalf of itself,
Jefferies LLC and Stifel, Nicolaus & Company, Inc.
By:
Name: J. W. Howard
Title: Executive Director
24
1551 of 2461
EXHIBIT A
(Disclosure and Truth -in -Bonding Statement)
CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds,
Series 2026
, 2026
Mayor and City Commission
City of Miami Beach, Florida
1700 Convention Center Drive
Miami Beach, Florida 33139
Ladies and Gentlemen:
In connection with the proposed execution and delivery of the $ City of Miami
Beach, Florida Resort Tax Revenue Refunding Bonds, Series 2026 (the "Series 2026 Bonds"),
Morgan Stanley & Co. LLC (the "Senior Managing Underwriter"), acting on behalf of itself and
Jefferies LLC and Stifel, Nicolaus & Company, Inc. (collectively, with the Senior Managing
Underwriter, the "Underwriters"), has agreed to underwrite a public offering of the Series 2026
Bonds. Arrangements for underwriting the Series 2026 Bonds will include a Bond Purchase
Agreement between the City of Miami Beach, Florida (the "City") and the Underwriters which
will embody the negotiations in respect thereof (the 'Purchase Agreement").
The purpose of this letter is to furnish, pursuant to the provisions of 218.385, Florida
Statutes, as amended, certain information in respect of the arrangements contemplated for the
underwriting of the Series 2026 Bonds as follows:
(c) The nature and estimated amounts of expenses to be incurred by the Underwriters
in connection with the purchase and reoffering of the Series 2026 Bonds are set
forth in Schedule A-1 attached hereto.
(d) No person has entered into an understanding with the Underwriters or, to the
knowledge of the Underwriters, with the City for any paid or promised
compensation or valuable consideration, directly or indirectly, expressly or
implied, to act solely as an intermediary between the City and the Underwriters
or to exercise or attempt to exercise any influence to effect any transaction in
connection with the purchase of the Series 2026 Bonds by the Underwriters.
(e) The total underwriting spread is $ ($_/$1,000 of Bonds).
(� The Management Fee is $ ($_J$1,000 of Bonds).
Exhibit A-1
1552 of 2461
(g) The Underwriters' Expenses are $ ($ /$1,000 of Bonds).
(h) No other fee, bonus or other compensation has been or will be paid by the
Underwriters in connection with the issuance of the Series 2026 Bonds to any
person not regularly employed or retained by the Underwriters, except
Underwriters' Counsel, Bryant Miller Olive P.A., as shown on Schedule A-1
hereto, including any "finder" as defined in Section 218.386(1)(a), Florida Statutes,
as amended.
(i) The names and addresses of the Underwriters are:
Morgan Stanley & Co. LLC
1200 S. Pine Island Road, Suite 800
Plantation, Florida 33324
Jefferies LLC
200 South Orange Avenue, Suite 1440
Orlando, Florida 32801
Stifel, Nicolaus & Company, Inc.
501 N. Broadway
St. Louis, Missouri 63102
(j) The City is proposing to issue $ principal amount of the Series 2026 Bonds,
as described in the Official Statement dated , 2026 relating to the Series 2026
Bonds (the "Official Statement"). These obligations are expected to be repaid over
a period of approximately years. At a true interest cost rate of %, total
interest paid over the life of the Series 2026 Bonds will be $ . Proceeds of the
Series 2026 Bonds will provide funds, together with other available funds, to (i)
refund the Refunded Bonds, as defined in the Purchase Agreement, and (ii) pay
the expenses incurred in connection with the issuance of the Series 2026 Bonds.
(k) The anticipated source of repayment or security for the Series 2026 Bonds is the
Pledged Funds (as defined in the Bond Resolution, which in turn is defined in the
Purchase Agreement). Authorizing these obligations will result in an average
annual amount of approximately $ (total debt service divided by
approximately years) of the aforementioned funds not being available each
year to finance the other services of the City over a period of approximately
years, with respect to the Series 2026 Bonds. We note that the Pledged Funds were
previously pledged to pay debt service on the Refunded Bonds and, with respect
to such debt service, issuance of the Series 2026 Bonds will produce a net present
value debt service savings of approximately $ although such savings will
not be realized in an equal amount each year the Series 2026 Bonds are
Outstanding.
Exhibit A-2
1553 of 2461
We understand that you do not require any further disclosure from the Underwriters
pursuant to Section 218.385, Florida Statutes, as amended.
Very truly. yours,
MORGAN STANLEY & CO. LLC on behalf of itself,
Jefferies LLC and Stifel, Nicolaus & Company, Inc.
Bv:
Name: J. W. Howard
Title: Executive Director
Exhibit A-3
1554 of 2461
SCHEDULE "A-1"
DETAILED BREAKDOWN OF UNDERWRITERS' DISCOUNT
CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds,
Series 2026
Underwriters' Counsel
Ipreo Book Running Fee
Ipreo Wire Charges Fee
Ipreo Gameday Fee
Ipreo Sales Tax
CUSIP Fee (11 Maturities)
DTCC Fee
Miscellaneous
TOTAL
Schedule A-1
1555 of 2461
EXHIBIT B
CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds,
Series 2026
MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, YIELDS AND PRICES
Maturity Principal
(September 1) Amount
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2041
2042
2043
2044
2045
$ Serial Bonds
Interest Rate Yield Price
*Yield and Price calculated to the first optional redemption date of September 1, 20_
$ Series 2026 Term Bonds
$ % Series 2026 Term Bond Due September 1, 20= Price: _J Yield:
% Initial CUSIP Number: 593238
$ % Series 2026 Term Bond Due September 1, 20 — Price:
/ Yield: % Initial
CUSIP Number: 593238
Exhibit B-1
1556 of 2461
Redemption Provisions
Optional Redemption
The Series 2026 Bonds maturing on or before September 1, 20_ are not subject to
redemption prior to maturity. The Series 2026 Bonds maturing on or after September 1,
20_ are subject to redemption prior to maturity, at the option of the City, on or after
September 1, 20 , in whole or in part at any time, in any order of maturity selected by
the City and by lot or by such other manner as the Bond Registrar shall deem appropriate
within a maturity, at a redemption price equal to one hundred percent (100%) of the
principal amount of the Series 2026 Bonds to be redeemed, together with accrued interest
to the date fixed for redemption and without premium.
Mandatory Sinking Fund Redemption
The Series 2026 Bonds maturing on September 1, 20_ are subject to mandatory
sinking fund redemption prior to maturity, in part, by lot or by such other manner as the
Bond Registrar shall deem appropriate, through the application of Amortization
Requirements, at a redemption price equal to one hundred percent (100%) of the principal
amount thereof, on September 1 of each year in the following amounts and in the years
specified:
Due Amortization
(September 1) Requirement
*Final maturity.
The Series 2026 Bonds maturing on September 1, 20_ are subject to mandatory
sinking fund redemption prior to maturity, in part, by lot or by such other manner as the
Bond Registrar shall deem appropriate, through the application of Amortization
Requirements, at a redemption price equal to one hundred percent (100%) of the principal
amount thereof, on September 1 of each year in the following amounts and in the years
specified:
Due Amortization
(September 1) Requirement
*Final maturity.
Exhibit B-2
1557 of 2461
EXHIBIT C
CITY OF MIAMI BEACH, FLORIDA
Resort Tax Revenue Refunding Bonds,
Series 2026
ISSUE PRICE CERTIFICATE
Morgan Stanley & Co. LLC ("Senior Managing Underwriter"), for itself and as
representative of the Underwriters (collectively, the "Underwriting Group") for the bonds
identified above (the "Issue"), issued by the City of Miami Beach, Florida (the "Issuer"), based on
its knowledge regarding the sale of the Issue, certifies as of this date as follows:
(1) Issue Price.
[If the issue price is determined using only the general rule (actual sales of at least 10%) in
Regulations § 1.148-1(f)(2)(i):
(A) As of the date of this Certificate, for each Maturity of the Issue, the
first price at which at least 10% of such Maturity of the Issue was sold to the Public is the
respective price listed in the final Official Statement, dated [ ], for the Issue (the "Sale
Price" as applicable to respective Maturities). The aggregate of the Sale Prices of each
Maturity is $[ ] (the "Issue Price").]
[If the issue price is determined using a combination of actual sales (Regulations
§ 1.148-10)(2)(0) and hold -the -offering -price (Regulations § 1.148-1(f)(2)(ii)):
(A) As of the date of this Certificate, for each Maturity listed on
Schedule A as the "General Rule Maturities," the first price at which at least 10% of such
Maturity Was sold to the Public is the respective price listed in Schedule A (the "Sale Price"
as applicable to each Maturity of the General Rule Maturities).
(B) On or before the Sale Date, the Underwriting Group offered the
Maturities listed on Schedule A as the "Hold -the -Offering -Price Maturities" to the Public
for purchase at the respective initial offering prices listed in Schedule A (the "Initial
Offering Prices" as applicable to each Maturity of the Hold -the -Offering -Price Maturities).
A copy of the pricing wire or equivalent communication for the Issue is attached to this
Certificate as Schedule B.
(C) As set forth in the Bond Purchase Agreement, the members of the
Underwriting Group have agreed in writing that, (i) for each Maturity of the Hold -the -
Offering -Price Maturities, they would neither offer nor sell any portion of such Maturity
to any person at a price that is higher than the Initial Offering Price for such Maturity
during the Holding Period for such Maturity (the "hold -the -offering -price rule"), and (ii)
Exhibit C-1
1558 of 2461
any selling group agreement shall contain the agreement of each dealer who is a member
of the selling group, and any third -party distribution agreement shall contain the
agreement of each broker -dealer who is a party to the third -party distribution agreement,
to comply with the hold -the -offering -price rule. Pursuant to such agreement, no
Underwriter has offered or sold any Maturity of the Hold -the -Offering -Price Maturities
at a price that is higher than the respective Initial Offering Price for that Maturity of the
Issue during the Holding Period.
(D) The aggregate of the Sale Prices of the General Rule Maturities and
the Initial Offering Prices of the Hold -the -Offering -Price Maturities is $[ ] (the
"Issue Price").]
[If the issue price is determined using only the hold -the -offering -price rule in Regulations
§ 1.148-1(f)(2)(ii):
(A) The Underwriting Group offered, on or before the Sale Date, each
Maturity of the Issue to the Public for purchase at the respective initial offering prices
listed in the final Official Statement, dated [ ], for the Issue (the "Initial Offering
Prices"). A copy of the pricing wire or equivalent communication for the Issue is attached
to this Certificate as Schedule A. The aggregate of the Initial Offering Prices of each
Maturity is $( ] (the "Issue Price").
(B) As set forth in the Bond Purchase Agreement, the members of the
Underwriting Group have agreed in writing that, (i) for each Maturity of the Issue, they
would neither offer nor sell any portion of such Maturity to any person at a price that is
higher than the Initial Offering Price for such Maturity during the Holding Period for such
Maturity (the "hold -the -offering -price rule"), and (ii) any selling group agreement shall
contain the agreement of each dealer who is a member of the selling group, and any third -
party distribution agreement shall contain the agreement of each broker -dealer who is a
party to the third -party distribution agreement, to comply with the hold -the -offering -
price rule. Pursuant to such agreement, no Underwriter has offered or sold any Maturity
of the Issue at a price that is higher than the respective Initial Offering Price for that
Maturity of the Issue during the Holding Period.]
[(B),(E), or (C)] Definitions.
[If issue price is determined using only the general rule (actual sales of 10%), delete the
definitions of "Holding Period" and "Sale Date."]
["Holding Period" means, for each Hold -the -Offering -Price Maturity of the Issue, the
period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day
after the Sale Date ([ ]), or (ii) the date on which the Underwriting Group has sold at least 10%
of such Maturity of the Issue to the Public at a price that is no higher than the Initial Offering
Price for such Maturity.]
Exhibit C-2
1559 of 2461
"Maturity" means bonds of the Issue with the same credit and payment terms. Bonds of
the Issue with different maturity dates, or bonds of the Issue with the same maturity date but
different stated interest rates, are treated as separate Maturities.
"Public" means any person (including an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. The
term "related party" for purposes of this certificate generally means any two or more persons who
have greater than 50 percent common ownership, directly or indirectly.
["Sale Date' means the first day on which there is a binding contract in writing for the
sale of a Maturity of the Issue. The Sale Date of the Issue is [—].]
"Underwriter" means (i) any person that agrees pursuant to a written contract with the
Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial
sale of the Issue to the Public, and (ii) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (i) of this paragraph to participate in the
initial sale of the Issue to the Public (including a member of a selling group or a party to a retail
distribution agreement participating in the initial sale of the Issue to the Public).
All capitalized terms not defined in this Certificate have the meaning set forth in the
Issuer's Tax Compliance Certificate or in Attachment A to it.
(2) Yield. The Yield on the Issue is [ ]%, being the discount rate that, when used
in computing the present worth of all payments of principal and interest to be paid on the Issue,
computed on the basis of a 360-day year and semiannual compounding, produces an amount
equal to the Issue Price of the Issue as stated in paragraph (1) [and computed with the adjustments
stated in paragraphs (6) and (7)].
(3) Weighted Average Maturity. The weighted average maturity (defined below) of
the Issue is [ ] years, and the remaining weighted average maturity of the Current Refunded
Bonds is [_1 years. The weighted average maturity of an issue is equal to the sum of the
products of the issue price of each maturity of the issue and the number of years to the maturity
date of the respective maturity (taking into account mandatory but not optional redemptions),
divided by the issue price of the entire issue.
(5) Underwriters' Discount. The Underwriters' discount is $[ ], being the
amount by which the aggregate Issue Price (as set forth in paragraph (1)) exceeds the price paid
by the Senior Managing Underwriter to the Issuer for the Issue.
[(6) Discount Maturities Subject to Mandatory Early Redemption. No Maturity that
is subject to mandatory early redemption has a stated redemption price that exceeds the Sale Price
or Initial Offering Price, as applicable, of such Maturity by more than one-fourth of I % multiplied
by the product of its stated redemption price at maturity and the number of years to its weighted
average maturity date.]
Exhibit C-3
1560 of 2461
[(6) Discount Maturities Subject to Mandatory Early Redemption. The stated
redemption price at maturity of the Maturities that mature in the year[s] 20[_], which Maturities
are the only Maturities of the Issue that are subject to mandatory early redemption, exceeds the
Sale Price or Initial Offering Price, as applicable, of such Maturities by more than one-fourth of
1% multiplied by the product of the stated redemption price at maturity and the number of years
to the weighted average maturity date of such Maturities. Accordingly, in computing the Yield
on the Issue stated in paragraph (2), those Maturities were treated as redeemed on each
mandatory early redemption date at their present value rather than at their stated principal
amount.]
[(6) Premium Maturities Subject to Optional Redemption. The Maturities that
mature in the years [ ] through [ ] are the only Maturities that are subject to optional
redemption before maturity and have an Initial Offering Price or Sale Price, as applicable, that
exceeds their stated redemption price at maturity by more than one fourth of 1% multiplied by
the product of their stated redemption price at maturity and the number of complete years to
their first optional redemption date. Accordingly, in computing the Yield on the Issue stated in
paragraph (2), each such Maturity was treated as retired on its optional redemption date or at
maturity to result in the lowest yield on that Maturity. No Maturity is subject to optional
redemption within five years of the Issuance Date of the Issue.]
[(6) No Discount or Premium Maturities. No Maturity was sold at an original issue
discount or premium.]
(7) No Stepped Coupon Maturities. No Maturity bears interest at an increasing
interest rate.
The signer is an officer of Senior Managing Underwriter and duly authorized to execute
and deliver this Certificate of the Senior Managing Underwriter for itself and as representative of
the Underwriting Group. The representations set forth in this certificate are limited to factual
matters only. Nothing in this certificate represents the Senior Managing Underwriter's
interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue
Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned
understands that the foregoing information will be relied upon by the Issuer with respect to
certain of the representations set forth in the Tax Compliance Certificate and with respect to
compliance with the federal income tax rules affecting the Issue, and by Squire Patton Boggs (US)
LLP, as bond counsel, in connection with rendering its opinion that the interest on the Issue is
excluded from gross income for federal income tax purposes, the preparation of the Internal
Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer
from time to time relating to the Issue. Except as expressly set forth above, the certifications set
forth herein may not be relied upon or used by any third party or for any other purpose.
Exhibit C4
1561 of 2461
Dated: , 2026
MORGAN STANLEY & CO. LLC on behalf of itself,
Jefferies LLC and Stifel, Nicolaus & Company, Inc.
y:
Name:
Title:
Exhibit C-5
1562 of 2461
[If the issue price is determined using a combination of the general rule (actual sales) and
hold -the -offering -price rule)
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
Maturity Principal
(Seyte_, mber 1) Amount Interest Rate Yield Price
*Yield and Price calculated to the first optional redemption date of September 1, 20_.
Schedule A
1563 of 2461
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)
[If the issue price is determined using only the hold -the -offering -price rule in Regulations
§ 1.148-1(f)(2)(ii):]
SCHEDULE A
PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)
1564 of 2461
DISCLOSURE DISSEMINATION AGENT AGREEMENT
This Disclosure Dissemination Agent Agreement (the "Disclosure Agreement"), dated as
of , 2026, is executed and delivered by the City of Miami Beach, Florida (the
"Issuer") and Digital Assurance Certification LLC, as exclusive Disclosure Dissemination Agent
(the "Disclosure Dissemination Agent" or "DAC") for the benefit of the Holders (hereinafter
defined) of the Bonds (hereinafter defined) and in order to provide certain continuing disclosure
with respect to the Bonds in accordance with Rule 15c2-12 of the United States Securities and
Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended
from time to time (the "Rule").
The services provided under this Disclosure Agreement solely relate to the execution of
instructions received from the Issuer through use of the DAC system and do not constitute
"advice" within the meaning of the Dodd -Frank Wall Street Reform and Consumer Protection
Act (the "Act"). DAC will not provide any advice or recommendation to the Issuer or anyone on
the Issuer's behalf regarding the "issuance of municipal securities" or any "municipal financial
product" as defined in the Act and nothing in this Disclosure Agreement shall be interpreted to
the contrary.
SECTION 1. Definitions. Capitalized terms not otherwise defined in this Disclosure
Agreement shall have the meaning assigned in the Rule or, to the extent not in conflict with the
Rule, in the Official Statement (hereinafter defined). The capitalized terms shall have the
following meanings:
"Annual Filing Date" means the date, set in Sections 2(a) and 2(f), by which the Annual
Report is to be filed with the MSRB.
"Annual Financial Information" means annual financial information as such term is used
in paragraph (b)(5)(i) of the Rule and specified in Section 3(a) of this Disclosure Agreement.
"Annual Report" means an Annual Report described in and consistent with Section 3 of
this Disclosure Agreement.
"Audited Financial Statements" means the financial statements (if any) of the Issuer for
the prior Fiscal Year, certified by an independent auditor as prepared in accordance with
generally accepted accounting principles or otherwise, as such term is used in paragraph (b)(5)(i)
of the Rule and specified in Section 3(b) of this Disclosure Agreement.
"Bonds" means the bonds as listed on the attached Exhibit A, with the 9-digit CUSIP
numbers relating thereto.
"Certification" means a written certification of compliance signed by the Disclosure
Representative stating that the Annual Report, Audited Financial Statements, Voluntary Report,
Notice Event notice or Failure to File Event notice delivered to the Disclosure Dissemination
Agent is the Annual Report, Audited Financial Statements, Voluntary Report, Notice Event
notice or Failure to File Event notice required to be submitted to the MSRB under this Disclosure
Agreement. A Certification shall accompany each such document submitted to the Disclosure
Dissemination Agent by the Issuer and include the full name of the Bonds and the 9-digit CUSIP
numbers for all Bonds to which the document applies.
11 06440286\2W M E R I CAS
1565 of 2461
"Disclosure Dissemination Agent" means Digital Assurance Certification LLC, acting in
its capacity as Disclosure Dissemination Agent hereunder, or any successor Disclosure
Dissemination Agent designated in writing by the Issuer pursuant to Section 9 hereof.
"Disclosure Representative" means the Chief Financial Officer of the Issuer or his or her
designee, or such other person as the Issuer shall designate in writing to the Disclosure
Dissemination Agent from time to time as the person responsible for providing Information to
the Disclosure Dissemination Agent.
"Failure to File Event" means the Issuer's failure to file an Annual Report on or before
the Annual Filing Date.
"Financial obligation" means a (i) debt obligation; (ii) derivative instrument entered into
in connection with, or pledged as a security or a source of payment for, an existing or planned
debt obligation; or (iii) guarantee of (i) or (ii). The term "financial obligation" shall not include
municipal securities as to which a final official statement has been provided to the MSRB
consistent with the Rule.
"Force Majeure Event" means: (i) acts of God, war, or terrorist action; (ii) failure or
shut -down of the Electronic Municipal Market Access system maintained by the MSRB; or (iii)
to the extent beyond the Disclosure Dissemination Agent's reasonable control, interruptions in
telecommunications or utilities services, failure, malfunction or error of any telecommunications,
computer or other electrical, mechanical or technological application, service or system,
computer virus, interruptions in Internet service or telephone service (including due to a virus,
electrical delivery problem or similar occurrence) that affect Internet users generally, or in the
local area in which the Disclosure Dissemination Agent or the MSRB is located, or acts of any
government, regulatory or any other competent authority the effect of which is to prohibit the
Disclosure Dissemination Agent from performance of its obligations under this Disclosure
Agreement.
"Holder" means any person (a) having the power, directly or indirectly, to vote or consent
with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds
through nominees, depositories or other intermediaries) or (b) treated as the owner of any Bonds
for federal income tax purposes.
"Information" means the Annual Financial Information, the Audited Financial Statements
(if any), the Notice Event notices, the Failure to File Event notices and the Voluntary Reports.
"MSRB" means the Municipal Securities Rulemaking Board established pursuant to
Section 15B(b)(1) of the Securities Exchange Act of 1934.
"Notice Event" means any of the events enumerated in paragraph (b)(5)(i)(C) of the Rule
and listed in Section 4(a) of this Disclosure Agreement.
"Obligated Person" means any person, including the Issuer, who is either generally or
through an enterprise, fund, or account of such person committed by contract or other
arrangement to support payment of all, or part of the obligations on the Bonds (other than
providers of municipal bond insurance, letters of credit, or other liquidity facilities).
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"Official Statement" means that Official Statement prepared by the Issuer in connection
with the Bonds.
"Voluntary Report" means the information provided to the Disclosure Dissemination
Agent by the Issuer pursuant to Section 7.
SECTION 2. Provision of Annual Reports.
(a) The Issuer shall provide, annually, an electronic copy of the Annual Report and
Certification to the Disclosure Dissemination Agent, not later than thirty (30) days prior to the
Annual Filing Date. Promptly upon receipt of an electronic copy of the Annual Report and the
Certification, the Disclosure Dissemination Agent shall provide an Annual Report to the MSRB
not later than two hundred forty (240) days after the end of each Fiscal Year, commencing with
the Fiscal Year ended September 30, 2026. Such date and each anniversary thereof is the Annual
Filing Date. The Annual Report may be submitted as a single document or as separate documents
comprising a package, and may cross-reference other information as provided in Section 3 of this
Disclosure Agreement.
(b) If on the fifteenth (15th) day prior to the Annual Filing Date, the Disclosure
Dissemination Agent has not received a copy of the Annual Report and Certification, the
Disclosure Dissemination Agent shall contact the Disclosure Representative by telephone and in
writing (which may be by e-mail) to remind the Issuer of its undertaking to provide the Annual
Report pursuant to Section 2(a). Upon such reminder, the Disclosure Representative shall either
(i) provide the Disclosure Dissemination Agent with an electronic copy of the Annual Report and
the Certification no later than two (2) business days prior to the Annual Filing Date, or (ii)
instruct the Disclosure Dissemination Agent in writing that the Issuer will not be able to file the
Annual Report within the time required under this Disclosure Agreement, state the date by which
the Annual Report for such year will be provided and instruct the Disclosure Dissemination
Agent that a Failure to File Event has occurred and to immediately send a notice to the MSRB in
substantially the form attached as Exhibit B.
(c) If the Disclosure Dissemination Agent has not received an Annual Report and
Certification by 10:00 a.m. Eastern time on the Annual Filing Date (or, if such Annual Filing
Date falls on a Saturday, Sunday or holiday, then the first business day thereafter) for the Annual
Report, a Failure to File Event shall have occurred and the Issuer irrevocably directs the
Disclosure Dissemination Agent to immediately send a Failure to File Event notice to the MSRB
in substantially the form attached as Exhibit B, without reference to the anticipated filing date for
the Annual Report.
(d) If Audited Financial Statements of the Issuer are prepared but not available prior
to the Annual Filing Date, the Issuer may provide an electronic copy of its unaudited financial
statements to the Disclosure Dissemination Agent and shall, when the Audited Financial
Statements are available, provide in a timely manner an electronic copy of the Audited Financial
Statements to the Disclosure Dissemination Agent, accompanied by a Certification, in each case
for filing with the MSRB. Compliance with the provisions of this Section 2(d) shall constitute
the Issuer's filing of the Annual Report until the Audited Financial Statements are filed.
(e) The Disclosure Dissemination Agent shall:
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(i) verify the filing specifications of the MSRB each year prior to the Annual
Filing Date;
(ii) upon receipt, promptly file each Annual Report received under Sections
2(a) and 2(b) with the MSRB;
(iii) upon receipt, promptly file each of the unaudited financial statements and
each of the Audited Financial Statements received under Section 2(d) with the MSRB;
(iv) upon receipt, promptly file the text of each Notice Event received under
Sections 4(a) and 4(b)(ii) with the MSRB, identifying the Notice Event as instructed by
the Issuer pursuant to Section 4(a) or 4(b)(ii) (being any of the categories set forth below)
when filing pursuant to Section 4(c) of this Disclosure Agreement indicated:
1. "Principal and interest payment delinquencies;"
2. "Non -Payment related defaults, if material;"
3. "Unscheduled draws on debt service reserves reflecting financial
difficulties;"
4. "Unscheduled draws on credit enhancements reflecting financial
difficulties;"
5. "Substitution of credit or liquidity providers, or their failure to
perform;"
6. "Adverse tax opinions, the issuance by the Internal Revenue
Service of proposed or final determinations of taxability, Notices of Proposed
Issue (IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the security, or other material events affecting the tax
status of the security;"
7. "Modifications to rights of Bond Holders, if material;"
8. "Bond calls, if material, and tender offers;"
9. "Defeasances;"
10. "Release, substitution, or sale of property securing repayment of
the securities, if material;"
11. "Rating changes;"
12. "Bankruptcy, insolvency, receivership or similar event of the
Obligated Person;"
13. "The consummation of a merger, consolidation, or acquisition
involving an Obligated Person or the sale of all or substantially all of the assets of
the Obligated Person, other than in the ordinary course of business, the entry into
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a definitive agreement to undertake such an action or the termination of a
definitive agreement relating to any such actions, other than pursuant to its terms,
if material;"
14. "Appointment of a successor or additional trustee or the change of
name of a trustee, if material;"
15. "Incurrence of a financial obligation of an Obligated Person, if
material, or agreement to covenants, events of default, remedies, priority rights, or
other similar terms of a financial obligation of an Obligated Person, any of which
affect Bond Holders, if material;" and
16. "Default, event of acceleration, termination event, modification of
terms, or other similar events under the terms of a financial obligation of an
Obligated Person, any of which reflect financial difficulties."
(v) upon receipt (or irrevocable direction pursuant to Section 2(c) of this
Disclosure Agreement, as applicable), promptly file a completed copy of Exhibit B to this
Disclosure Agreement with the MSRB, identifying the filing as "Failure to provide
annual information as required" when filing pursuant to Section 2(b)(ii) or Section 2(c) of
this Disclosure Agreement;
(vi) upon receipt, promptly file the text of each Voluntary Report received
under Section 7 with the MSRB; and
(vii) provide the Issuer evidence of the filings of each of the above when made,
which shall be by means of the DAC system, for so long as DAC is the Disclosure
Dissemination Agent under this Disclosure Agreement.
(f) The Issuer may adjust the Annual Filing Date upon change of its Fiscal Year by
providing written notice of such change and the new Annual Filing Date to the Disclosure
Dissemination Agent and the MSRB, provided that the period between the existing Annual
Filing Date and new Annual Filing Date shall not exceed one year.
(g) Any Information received by the Disclosure Dissemination Agent before 6:00
p.m. Eastern time on any business day that it is required to file with the MSRB pursuant to the
terms of this Disclosure Agreement and that is accompanied by a Certification and all other
information required by the terms of this Disclosure Agreement will be filed by the Disclosure
Dissemination Agent with the MSRB no later than 11:59 p.m. Eastern time on the same business
day; provided, however, the Disclosure Dissemination Agent shall have no liability for any delay
in filing with the MSRB if such delay is caused by a Force Majeure Event, provided that the
Disclosure Dissemination Agent uses reasonable efforts to make any such filing as soon as
possible.
SECTION 3. Content of Annual Reports.
(a) Each Annual Report shall contain the following Annual Financial Information for
the prior Fiscal Year: the information in the Official Statement in the tables under the caption
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["THE RESORT TAX" entitled "Resort Tax Revenues by Source" and "Resort Tax Revenues,
Debt Service and Debt Service Coverage".]
(b) Audited Financial Statements prepared in accordance with generally accepted
accounting principles ("GAAP") will be included in the Annual Report, but may be provided in
accordance with Section 2(d).
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues with respect to which the Issuer is an
Obligated Person, which have been previously filed with the Securities and Exchange
Commission or available to the public on the MSRB Internet Website. If the document
incorporated by reference is a final official statement, it must be available from the MSRB. The
Issuer will clearly identify each such document so incorporated by reference.
Any Annual Financial Information containing modified operating data or financial
information is required to explain, in narrative form, the reasons for the modification and the
impact of the change in the type of operating data or financial information being provided.
SECTION 4. Reporting_of Notice Events.
(a) The occurrence of any of the following events with respect to the Bonds
constitutes a Notice Event:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form
5701-TEB) or other material notices or determinations with respect to the tax status of the
Bonds, or other material events affecting the tax status of the Bonds;
7. Modifications to rights of Bond Holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the Bonds,
if material;
11. Rating changes on the Bonds;
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12. Bankruptcy, insolvency, receivership or similar event of the Obligated
Person;
Note: for the purposes of the event identified in this subsection 4(a)(12), the event is considered to
occur when any of the following occur: the appointment of a receiver, fiscal agent or .similar officerfor an
Obligated Person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state
or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of
the assets or business of the Obligated Person, or if such jurisdiction has been assumed by leaving the
existing governmental body and officials or officers in possession but subject to the supervision and orders
of a court or governmental authority, or the entry of an order confirming a plan of reorganization,
arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over
.substantially all of the assets or business of the Obligated Person.
13. The consummation of a merger, consolidation, or acquisition involving an
Obligated Person or the sale of all or substantially all of the assets of the Obligated
Person, other than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement relating to any
such actions, other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material;
15. Incurrence of a financial obligation of an Obligated Person, if material, or
agreement to covenants, events of default, remedies, priority rights, or other similar terms
of a financial obligation of an Obligated Person, any of which affect Bond Holders, if
material; and
16. Default, event of acceleration, termination event, modification of terms, or
other similar events under the terms of a financial obligation of an Obligated Person, any
of which reflect financial difficulties.
The Issuer shall, in a timely manner not in excess of ten (10) business days after its
occurrence, notify the Disclosure Dissemination Agent in writing of the occurrence of a Notice
Event. Such notice shall instruct the Disclosure Dissemination Agent to report the occurrence
pursuant to subsection (c) of this Section 4 and shall' be accompanied by a Certification. Such
notice or Certification shall identify the Notice Event that has occurred (which shall be any of the
categories set forth in Section 2(e)(iv) of this Disclosure Agreement), include the text of the
disclosure that the Issuer desires to make, contain the written authorization of the Issuer for the
Disclosure Dissemination Agent to disseminate such information, and identify the date the Issuer
desires for the Disclosure Dissemination Agent to disseminate the information (provided that
such date is not later than the tenth (1 Oth) business day after the occurrence of the Notice Event).
(b) The Disclosure Dissemination Agent is under no obligation to notify the Issuer'or
the Disclosure Representative of an event that may constitute a Notice Event. In the event the
Disclosure Dissemination Agent so notifies the Disclosure Representative, the Disclosure
Representative will within two business days of receipt of such notice (but in any event not later
than the tenth (10th) business day after the occurrence of the Notice Event, if the Issuer
determines that a Notice Event has occurred), instruct the Disclosure Dissemination Agent that
(i) a Notice Event has not occurred and no filing is to be made or (ii) a Notice Event has occurred
and the Disclosure Dissemination Agent is to report the occurrence pursuant to Section 4(c),
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together with a Certification. Such notice or Certification shall identify the Notice Event that has
occurred (which shall be any of the categories set forth in Section 2(e)(iv) of this Disclosure
Agreement), include the text of the disclosure that the Issuer desires to make, contain the written
authorization of the Issuer for the Disclosure Dissemination Agent to disseminate such
information, and identify the date the Issuer desires for the Disclosure Dissemination Agent to
disseminate the information (provided that such date is not later than the tenth (10th) business
day after the occurrence of the Notice Event).
(c) If the Disclosure Dissemination Agent has been instructed by the Issuer as
prescribed in subsection (a) or (b)(ii) of this Section 4 to report the occurrence of a Notice Event,
the Disclosure Dissemination Agent shall promptly file a notice of such occurrence with the
MSRB in accordance with Section 2(e)(iv) hereof.
SECTION 5. CUSIP Numbers. Whenever providing information to the Disclosure
Dissemination Agent, including but not limited to Annual Reports, documents incorporated by
reference to the Annual Reports, Audited Financial Statements, notices of Notice Events, Failure
to File Events and Voluntary Reports filed pursuant to Section 7(a), the Issuer shall indicate the
full name of the Bonds and the 9-digit CUSIP numbers for the Bonds as to which the provided
information relates.
SECTION 6. Additional Disclosure Obligations. The Issuer acknowledges and
understands that other state and federal laws, including but not limited to the Securities Act of
1933 and Rule lOb-5 promulgated under the Securities Exchange Act of 1934, may apply to the
Issuer, and that the failure of the Disclosure Dissemination Agent to so advise the Issuer shall not
constitute a breach by the Disclosure Dissemination Agent of any of its duties and
responsibilities under this Disclosure Agreement. The Issuer acknowledges and understands that
the duties of the Disclosure Dissemination Agent relate exclusively to execution of the
mechanical tasks of disseminating information as described in this Disclosure Agreement.
SECTION 7. Voluntary Reports.
(a) The Issuer may instruct the Disclosure Dissemination Agent to file information
with the MSRB, from time to time pursuant to a Certification of the Disclosure Representative
accompanying such information (a "Voluntary Report").
(b) Nothing in this Disclosure Agreement shall be deemed to prevent the Issuer from
disseminating any other information through the Disclosure Dissemination Agent using the
means of dissemination set forth in this Disclosure Agreement or including any other
information in any Annual Report, Audited Financial Statements, Voluntary Report, Notice
Event notice or Failure to File Event notice, in addition to that required by this Disclosure
Agreement. If the Issuer chooses to include any information in any Annual Report, Audited
Financial Statements, Voluntary Report, Notice Event notice, or Failure to File Event notice in
addition to that which is specifically required by this Disclosure Agreement, the Issuer shall have
no obligation under this Disclosure Agreement to update such information or include it in any
future Annual Report, Audited Financial Statements, Voluntary Report, Notice Event notice or
Failure to File Event notice.
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SECTION 8. Termination of Reporting _ Obligation. The obligations of the Issuer and
the Disclosure Dissemination Agent under this Disclosure Agreement shall terminate with
respect to the Bonds upon the legal defeasance, prior redemption or payment in full of all of the
Bonds, when the Issuer is no longer an Obligated Person with respect to the Bonds, or upon
delivery by the Disclosure Representative to the Disclosure Dissemination Agent of an opinion
of nationally recognized bond counsel to the effect that continuing disclosure is no longer
required.
SECTION 9. Disclosure Dissemination Agent. The Issuer has appointed Digital
Assurance Certification LLC as exclusive Disclosure Dissemination Agent under this Disclosure
Agreement. The Issuer may, upon thirty (30) days prior written notice to the Disclosure
Dissemination Agent, replace or appoint a successor Disclosure Dissemination Agent. Upon
termination of DAC's services as Disclosure Dissemination Agent, whether by notice of the
Issuer or DAC, the Issuer agrees to appoint a successor Disclosure Dissemination Agent or,
alternately, agrees to assume all responsibilities of Disclosure Dissemination Agent under this
Disclosure Agreement for the benefit of the Holders of the Bonds. Notwithstanding any
replacement or appointment of a successor, the Issuer shall remain liable until payment in full for
any and all sums owed and payable to the Disclosure Dissemination Agent. The Disclosure
Dissemination Agent may resign at any time by providing thirty (30) days prior written notice to
the Issuer.
SECTION 10. Remedies in Event of Default. In the event of a failure of the Issuer or
the Disclosure Dissemination Agent to comply with any provision of this Disclosure Agreement,
any Holder's rights to enforce the provisions of this Disclosure Agreement shall be limited solely
to a right, by action in mandamus or for specific performance, to compel performance of the
parties' obligations under this Disclosure Agreement. Any failure by a party to perform in
accordance with this Disclosure Agreement shall not constitute a default on the Bonds or under
any other document relating to the Bonds, including the Resolution, and all rights and remedies
shall be limited to those expressly stated herein.
SECTION 11. Duties Immunities and Liabilities of Disclosure Dissemination Agent.
(a) The Disclosure Dissemination Agent shall have only such duties as are
specifically set forth in this Disclosure Agreement. The Disclosure Dissemination Agent's
obligation to deliver the information at the times and with the contents described herein shall be
limited to the extent the Issuer has provided such information to the Disclosure Dissemination
Agent as required by this Disclosure Agreement. The Disclosure Dissemination Agent shall
have no duty with respect to the content of any disclosures or notice made pursuant to the terms
hereof. The Disclosure Dissemination Agent shall have no duty or obligation to review or verify
any Information or any other information, disclosures or notices provided to it by the Issuer and
shall not be deemed to be acting in any fiduciary capacity for the Issuer, the Holders of the
Bonds or any other party. The Disclosure Dissemination Agent shall have no responsibility for
the Issuer's failure to report to the Disclosure Dissemination Agent a Notice Event or a duty to
determine the materiality thereof. The Disclosure Dissemination Agent shall have no duty to
determine, or liability for failing to determine, whether the Issuer has complied with this
Disclosure Agreement. The Disclosure Dissemination Agent may conclusively rely upon
certifications of the Issuer at all times.
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The obligations of the Issuer under this Section shall survive resignation or removal of
the Disclosure Dissemination Agent and defeasance, redemption or payment of the Bonds.
(b) The Disclosure Dissemination Agent may, from time to time, consult with legal
counsel (either in-house or external) of its own choosing in the event of any disagreement or
controversy, or question or doubt as to the construction of any of the provisions hereof or its
respective duties hereunder, and shall not incur any liability and shall be fully protected in acting
in good faith upon the advice of such legal counsel. The reasonable fees and expenses of such
counsel shall be payable by the Issuer.
(c) All documents, reports, notices, statements, information and other materials
provided to the MSRB under this Disclosure Agreement shall be provided in an electronic format
and accompanied by identifying information as prescribed by the MSRB.
SECTION 12. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Agreement, the Issuer and the Disclosure Dissemination Agent may amend this
Disclosure Agreement and any provision of this Disclosure Agreement may be waived, if such
amendment or waiver is supported by an opinion of counsel expert in federal securities laws
acceptable to both the Issuer and the Disclosure Dissemination Agent to the effect that such
amendment or waiver does not materially impair the interests of Holders of the Bonds and would
not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or
waiver had been effective on the date hereof but taking into account any subsequent change in or
official interpretation of the Rule; provided neither the Issuer nor the Disclosure Dissemination
Agent shall be obligated to agree to any amendment modifying their respective duties or
obligations without their consent thereto.
Notwithstanding the preceding paragraph, the Disclosure Dissemination Agent shall have
the right to adopt amendments to this Disclosure Agreement necessary to comply with
modifications to and interpretations of the provisions of the Rule as announced by the Securities
and Exchange Commission from time to time by giving not less than twenty (20) days written
notice of the intent to do so together with a copy of the proposed amendment to the Issuer. No
such amendment shall become effective if the Issuer shall, within ten (10) days following the
giving of such notice, send a notice to the Disclosure Dissemination Agent in writing that it
objects to such amendment.
SECTION 13. Sources of Payments; No Personal Liability. Notwithstanding anything to
the contrary contained in this Disclosure Agreement, the Issuer shall be required to use only Resort
Tax Revenues to pay any costs and expenses to be incurred in the performance of this Disclosure
Agreement by it, and the performance of its obligations hereunder shall be subject to the availability
of Resort Tax Revenues for that purpose. This Disclosure Agreement does not and shall not
constitute a general obligation of the Issuer. No covenant, stipulation, obligation or agreement of
the Issuer contained in this Disclosure Agreement shall be deemed to be a covenant, stipulation,
obligation or agreement of any present or future officer, agent or employee of the Issuer in other
than that person's official capacity.
SECTION 14. Beneficiaries. This Disclosure Agreement shall inure solely to the
benefit of the Issuer, the Disclosure Dissemination Agent, the Underwriters, and the Holders
from time to time of the Bonds, and shall create no rights in any other person or entity.
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SECTION 15. Governing Law. This Disclosure Agreement shall be governed by the
laws of the State of Florida.
SECTION 16. Counterparts. This Disclosure Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
[Signature Page to Follow]
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The Disclosure Dissemination Agent and the Issuer have caused this Disclosure
Agreement to be executed, on the date first written above, by their respective officers duly
authorized.
DIGITAL ASSURANCE CERTIFICATION LLC,
as Disclosure Dissemination Agent
Name:
Title:
CITY OF MIAMI BEACH, FLORIDA, as Issuer
Jason D. Greene
Chief Financial Officer
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EXHIBIT A
NAME AND CUSIP NUMBERS OF BONDS
Name of Issuer: City of Miami Beach, Florida
Obligated Person: City of Miami Beach, Florida
Name of Bond Issue: Resort Tax Revenue Refunding Bonds, Series 2026
Date of Issuance: , 2026
Date of Official Statement: , 2026
CUSIP Numbers:
A-1
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EXHIBIT B
NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT
Issuer: City of Miami Beach, Florida
Obligated Person: City of Miami Beach, Florida
Name of Bond Issue: Resort Tax Revenue Refunding Bonds, Series 2026
Date of Issuance: , 2026
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with
respect to the above -named Bonds as required by the Disclosure Dissemination Agent
Agreement, dated as of , 2026, between the Issuer and Digital Assurance
Certification LLC, as Disclosure Dissemination Agent. The Issuer has notified the Disclosure
Dissemination Agent that it anticipates that the Annual Report will be filed by
Dated:
Digital Assurance Certification LLC, as
Disclosure Dissemination Agent, on behalf
of the Issuer
cc: City of Miami Beach, Florida
B-1
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