2007-3582 OrdinanceORDINANCE NO. 2007-3582
AN ORDINANCE OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, AMENDING CHAPTER 2 OF THE CODE
OF THE CITY OF MIAMI BEACH, FLORIDA, BY
AMENDING ARTICLE V THEREIN, ENTITLED
"FINANCE;" BY CREATING A NEW SECTION 2-
278, ENTITLED "PROCEDURES GOVERNING THE
ISSUANCE OF BONDS,"; PROVIDING FOR
REPEALER; SEVERABILITY; CODIFICATION;
AND AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. Chapter 2 of the City Code is hereby amended, creating a new Section 2-
278, entitled "Procedures governing the issuance of bonds," as follows:
Section 2-278. Procedures GoverninE the Issuance of Bonds.
(a) Prior to the adoption by the City Commission of the final resolution approving the
issuance of any bonds by the City, the following requirements shall be complied with:
1. In order for the City Commission and the public to be fully informed on all
matters relating to the proposed issuance of bonds, the City Manager shall
prepare, or cause to be prepared, a fiscal analysis of the economic impact of the
proposed bond issuance using the following criteria:
a)The estimated cost of the project or proiects on account of which such
bonds are to be issued.:
(b) The estimated annual revenues if any to be generated b s~project
or projects; and.
(c) The estimated annual cost of maintaining repairing and o eratin~ such
project or projects.
2. Upon completion of the fiscal analysis in subsection (a)1 the proposed issuance
of bonds shall be first considered and reviewed by the City's Finance and
Citywide Projects Committee.
3. The Citv Commission shall hold two (2) public hearings each advertised not less
than fifteen (15) days prior to the hearing in order to obtain citizen input into the
proposed bond issuance.
(b) IIi the event the particular issuance of bonds is one that is subject to referendum
approval pursuant to Florida law, then the conditions in subsections (1~ (2) of section
~) above shall be complied with prior to adoption by the City Commission of the
resolution calling for the referendum pertaining to the issuance of the proposed bonds.
~c) To meet a public emergency affectins; life, health, propertypublic safety
City Commission may, by 5/7ths vote of the members of the City Commission waive the
requirements of this section; provided, however, that such waiver shall not be deemed to
be a waiver of any other le acquirements under local, State, and federal law for the
issuance of the proposed bonds.
~d) The provisions of this section shall not apply to the issuance of any bonds to
refund or refinance outstanding bonds or other obli atg ions.
SECTION 2. REPEALER.
That all Ordinances or parts of Ordinances in conflict herewith be and the same
are hereby repealed.
SECTION 3. CODIFICATION.
It is the intention of the City Commission, and it is hereby ordained that the
provisions of this Ordinance shall become and be made part of the Code of the City of
Miami Beach as amended; that the sections of this Ordinance may be renumbered or
relettered to accomplish such intention; and that the word "ordinance" maybe changed to
"section" or other appropriate word.
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid,
the remainder shall not be affected by such invalidity.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the 1 s t
PASSED and ADOPTED this 21st day of
ATTEST:
~" David Dermer
CITY CLERK Robert Parcher APPROVED AS TO
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COMMISSION ITEM SUMMARY
Condensed Title:
An Ordinance Amending Chapter 2 Of The Code Of The City Of Miami Beach, Florida, Entitled "Finance"
By Amending Article V Thereof, Entitled "Bonds;" By Creating A New Section 2-278, Entitled "Procedures
Governing The Issuance Of Bonds"; Providing For Repealer; Severability; Codification; And An Effective
Date.
Key Intended Outcome Supported:
To make the city more business friendly. Improve the City's overall financial health and maintain
overall bond rating. Ensure expenditure trends are sustainable over the long term.
Supporting Data (Surveys, Environmental Scan, etc.): Bond ratings have improved for S&P from
Al in FY 2000/01 to AA- in FY 2006/07and Moody's from A in FY 2000/01 to AA3 in FY2006/07.
Issue:
Shall the City Commission approve new procedures governing the issuance of bonds?
Item Summary/Recommendation:
SECOND READING PUBLIC HEARING
The Ordinance, prepared at the request of Mayor Dermer, establishes procedures to be followed by the
Mayor and City Commission, prior to the adoption of a final resolution approving the issuance of City
bonds.
These requirements are necessary to ensure that there has been a thorough fiscal analysis and review
completed, to fully inform both the Mayor and City Commission and the public of the financial and
economic impact resulting from the issuance of the proposed bonds.
The Administration recommends adopting the ordinance.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds:
2
3
4
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Patricia Walker, Chief Financial Officer
Si n-Offs:
Department Director Ass' nt City Manager City Manager
PDW JMG
T:\AGENDA\2007\nov0707\Regular\Znd reading pre bond ordinafiL~e SurXSmary.doc
~ MIAMIBEACH
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AGENDA ITEM RSA
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manage
SECOND READING
DATE: November 21, 2007 PUBLIC HEARING
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE
CITY OF MIAMI BEACH, FLORIDA, BY AMENDING ARTICLE V THEREIN,
ENTITLED "FINANCE;" BY CREATING A NEW SECTION 2-278, ENTITLED
"PROCEDURES GOVERNING THE ISSUANCE OF BONDS,"; PROVIDING FOR
REPEALER; SEVERABILITY; CODIFICATION; AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Adopt the Ordinance.
KEY INTENDED OUTCOMES SUPPORTED
Improve the City's overall financial health and maintain overall bond rating.
Ensure expenditure trends are sustainable over the long term.
ANALYSIS
The Ordinance, prepared at the request of Mayor Dermer, amends Chapter 2 of the City
Code and creates a new Section 2-278 and establishes procedures to be followed by the
Mayor and City Commission, prior to the adoption of a final resolution approving the
issuance of City bonds.
These requirements are necessary to ensure that there has been a thorough fiscal analysis
and review completed, to fully inform both the Mayor and City Commission and the public of
the financial and economic impact resulting from the issuance of the proposed bonds.
Specifically, the fiscal analysis shall include the estimated cost of the project or projects that
will be funded from the proposed bonds along with the estimated annual cost of maintaining,
repairing and operating each project. Additionally, any revenues that may be generated from
the project should be estimated and considered in the analysis.
Following completion of the analysis, the proposed issuance of bonds must be presented to
the City's Finance and Citywide Projects Committee for their review and the ordinance must
be approved by a majority vote of the Committee.
The Ordinance further requires that the City Commission hold two public hearings each
advertised not later than fifteen (15) days prior to the hearing, in order to obtain citizen input
on the proposed bond issuance.
In the case of General Obligation Bonds or other bonds that are subject to referendum
approval pursuant to Florida law, the fiscal analysis and approval of the bond issuance by
the City's Finance and Citywide Projects Committee must occur prior to the adoption of the
resolution calling for the referendum (i.e. the ballot question).
In the event of a public emergency, the provisions of the Ordinance may be waived by 5/7ths
vote of the City Commission and it will not apply to refunding or refinancing of outstanding
bonds or other obligations.
FISCAL IMPACT
The economic impact for this ordinance will vary based on the number of projects to be
funded with the proposed bonds and the complexity of the determination of the revenues to
be generated, if any, along with the operating and maintenance costs of such projects.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the ordinance.
JMG/PDW
T:\AGENDA\2007\nov0707\Regular\FINAL 2nd reading commission memo for pre bond ordinance.doc
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