Miami-Beach-Issues-First-Tranche-of-G.O.-Bond-
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139, www.miamibeachfl.gov
DEPARTMENT OF MARKETING & COMMUNICATIONS, Tel: 305.673.7575 PRESS RELEASE
Tonya Daniels, E-mail: tonyadaniels@miamibeachfl.gov
Melissa Berthier, E-mail: melissaberthier@miamibeachfl.gov
FOR IMMEDIATE RELEASE
March 13, 2019
Miami Beach Issues First Tranche of General Obligation Bond
— Totaling $153 Million for the First Three Years —
Miami Beach, FL – Today, the Miami Beach City Commission unanimously approved the
issuance of $153 million as part of the first tranche of the city’s $439 million general obligation
bond. During the months of January and February 2019, the G.O. Bond Oversight Committee
reviewed and validated the proposed project implementation plan. The timing and amounts
were consistent with the voter education campaign shared with the community and the
Committee’s final recommendations to the City Commission were 99 percent consistent with the
City administration’s initial proposed plan.
As a result, the total allocation for the final amount is as follows: $87.7 million for projects
regarding parks, recreational facilities and cultural facilities; $36.9 million for police, fire and
public safety measures; and $28.4 million for neighborhoods and infrastructure improvements.
“The timing is ideal for the first issuance of our general obligation bond,” noted Mayor Dan
Gelber. “Not only did we recently conclude a careful review of the prioritization of our projects of
which our resident, committee members and City Commission were in agreeance, but the
current market is extremely strong for municipal bonds.”
Based on market conditions as of January 25, 2019, a refinancing of the Series 2003 Bonds
would have an all-inclusive true interest cost of 2.72 percent and provide net present value
savings of $3.8 million, which is over 13 percent of bonds refunded. The total savings over the
life of the bonds would be $6.2 million as of January 25, 2019, with the final principal
amortization on the Series 2003 Bonds shortened from 2033 to 2032 to maximize total savings.
While the savings from this refinancing are subject to market conditions at the time of pricing,
combining the refinancing with the issuance for new projects creates economies of scale.
Rather than issuing all the bonds at once, the phased-out approach allows the 57 projects to be
implemented over a period of approximately 10 to 12 years issuing tranches every three fiscal
years. The total of the 4 tranches will be issued as follows: approximately $153 million in FY
2019, $103 million in FY 2022, $98 million in FY 2025, and $85 million in FY 2028. As such, the
necessary millage rate increases will be also be gradually phased in after the initial issuance to
cover the debt service costs associated with the bond issuances.
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