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LTC 307-2023 Opportunity for Residents to Purchase Arts & Culture G.O. BondsM IAM I BEACH OFFICE OF THE CITY MANAGER NO. LTC # 307-2023 LETTER TO COMMISSION TO: FROM: DATE: Mayor Dan G elber and Mem bers of the City Commission Ana T. Hudak, ci y Mana ~k($} 00y 6. 202s \}" SUBJECT: Opportunity for Residents to Purchase Arts & Culture G.O. Bonds T he purpose of this L TC is to advise you of info rm ation being disseminated regarding the opportunity fo r residents to purchase the City's Arts & Culture G .O . Bonds. The City of M iam i Beach is announcing a $10 1,700,000 G eneral O bligation Bond offering. The planned sale is to offer bonds to investors during an order period on the m orn ing of W ednesday, July 12, 2023. Investors will have the opportunity to purchase the City of M iami Beach General Obligation bonds in m inim um denom inations of $5,000 on that date. T he pro ceeds of the Arts & Culture G .O . bonds will be used to finance the cost of impro ving facilities fo r resiliency of arts and cultural institutions throughout the City of M iami Beach including museums, perform ance venues, artistic playgro unds, senior/cultural centers, a botanical garden, an aquatic sculpture park and related artist/w orkforce housing, as appro ved by the voters of the City on Novem b er 8, 2022. Bonds cannot be purchased directly from the City of Miami Beach. For more info rmation about these bonds, incl uding a copy of the Prelim inary O fficial Statem ent, investors can call any of the firms below . O rders may be placed thro ugh these financial services firm s working with the City of Miami Beach. W ells Fargo Securities Estrada H inojosa & Com pany, Inc. G oldm an Sachs & Co., LLC 1-866-287-3221 1-800-676-5352 1-917-343- 7900 O n the next page you w ill find a flyer w ith additional info rm ation. This info rm ation has also been made available on the G O Bond-A rts2022 website. If you have any questions, please contact Jason D. G reene, Chief Financial O fficer. Attachments Flyer "g City of M iami Beach, Florida General Obligation Bonds (Arts and Cultural Facilities), Series 2023A&B Investors will have the opportunity to purchase City of Miami Beach General Obligation Bonds (the "Bonds") during an order period currently expected to occur on the morning of July 12, 2023*. The proceeds of the Bonds will be used to finance the cost of improving facilities for resiliency of arts and cultural institutions throughout the City of Miami Beach (the "City"), including museums, performance venues, artistic playgrounds, senior/cultural centers, a botanical garden, an aquatic sculpture park and related artist/workforce housing, as approved by the voters of the City on November 8, 2022. A detailed description of matters relevant to the Bonds and the specific projects to be financed is provided in the Preliminary Official Statement relating to the Bonds dated July 5, 2023 (the "Preliminary Official Statement"). Specifics of the Bonds, as more particularly described in the Preliminary Official Statement, include: $43,515,000 of City of Miami Beach, Florida General Obligation Bonds (Arts and Cultural Facilities), Series 2023A (the "Series 2023A Bonds") $54,035,000 of City of Miami Beach, Florida General Obligation Bonds (Arts and Cultural Facilities), Taxable Series 2023B (the "Series 2023B Bonds") All Bonds secured by the full faith and credit of the City Ratings on Bonds from Moody's and S&P are Aa2 (stable) and AA+ (stable), respectively Bonds are available for purchase in minimum denominations of $5,000 Interest on the Series 2023A 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. Interest on the Series 2023A Bonds may be subject to certain federal taxes imposed only on certain corporations. Interest on the Series 2023B Bonds is not excluded from gross income for federal income tax purposes. For a more complete discussion of the tax aspects relating to the Bonds, please see "TAX MATTERS" in the Preliminary Official Statement. Bonds cannot be purchased directly from the City. For more information about the Bonds, including a copy of the Preliminary Official Statement, please contact your financial advisor or investment broker. Your advisor or broker can contact any of the financial services firms listed below. Orders to purchase Bonds may be placed through such firms. Wells Fargo Securities Estrada Hinojosa & Company, Inc. Goldman Sachs & Co. LLC 1-866-287-3221 1-800-676-5352 1-917-343-7900 This announcement is not intended to be nor does it constitute an offer to sell, an attempt to effect a sale, or a solicitation of an offer to buy any of the Bonds. The Bonds may only be purchased through the financial services firms listed above or through entities working with such firms to facilitate offers and sales of the Bonds. The Preliminary Official Statement provides information as of its date relating to the proposed offer and sale of the Bonds, but is subject to amendment and completion. Offers and sales of the Bonds will be made solely by means of a final Official Statement containing the actual terms of the Bonds preliminarily described in the Preliminary Official Statement. A purchase of the Bonds may not be suitable for all investors. Potential investors should consult with their advisors as to the suitability of an investment in the Bonds. Preliminary, subject to change and availability.