On-Your-Mark-Get-Set-G.O.
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139, www.miamibeachfl.gov
MARKETING & COMMUNICATIONS DEPARTMENT, Tel: 305.673.7575 PRESS RELEASE
Tonya Daniels, E-mail: tonyadaniels@miamibeachfl.gov
Melissa Berthier, E-mail: melissaberthier@miamibeachfl.gov
FOR IMMEDIATE RELEASE
April 16, 2019
On Your Mark, Get Set, G.O.!
—City of Miami Beach General Obligation Bonds Hit the Wall Street Market—
Miami Beach, FL –The first tranche of Miami Beach General Obligation Bonds
successfully hit the market today. City Manager Jimmy L. Morales and CFO John
Woodruff traveled to New York City to personally oversee the bond pricing and sale
process on Wall Street.
The pricing of the G.O. Bonds generated tremendous investor interest with $342 million
in orders for $162 million in tax-exempt bonds. The high demand for these bonds
allowed the city to reduce yields in the final pricing, and the refunding portion of the
bonds provided $4.9 million in net present value savings. The final pricing of the first
tranche of bonds at 3.49% is 0.76% lower than the estimated cost of 4.25%. The lower
interest rate achieved represents significant savings of $28 million to Miami Beach
residents in lower total payments over the 30-year life of the bonds.
“The extremely positive bond sale results demonstrate a strongly held confidence in the
financial state of the City of Miami Beach — further supporting the outstanding credit
ratings that the city received earlier this month from S&P (AA+) and Moody’s (Aa2), as
well as our recently increased FEMA Community Rating Score (CRS) from Class 4 to
Class 5,” said Mayor Dan Gelber. “This all underscores the hard work of my colleagues
and city staff in our resilience-building initiatives, showcasing how Miami Beach is Rising
Above the challenges it faces as a barrier island.”
The $439 million total G.O. Bond Program is set to be issued in four separate tranches
every three years, with the 57 projects being implemented over a 10 to 12-year period.
This first tranche of $153 million was approved by the City Commission on March 13,
2019 and has been allocated as follows:
• Parks, Recreational and Cultural Facilities: $87,700,000
• Police, Fire and Public Safety: $36,900,000
• Neighborhood and Infrastructure: $28,400,000
It’s now time for the city to get to work! The implementation phase of projects has
already begun, and the first construction groundbreaking is soon to be announced.
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