LTC 315-2023 Arts & Culture G.O. Bond Pricing UpdateM IAM I BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # LETTER TO COMMISSION
TO:
FROM:
DATE:
SUBJECT:
Mayor Dan Gelber and Memb" ~ City Commission
as r.o. cs or e#et{(]
July 13, 2023 u
Arts & Culture G.O. Bond Pricing Update
The purpose of this L TC is to advise you of the pricing achieved from the sale of the first tranche of
A rt s & Culture G eneral O bligation (ACG O ) bonds.
O n W ednesday, the City team had an extrem ely successful foray into the bond market demonstrating
investors' confidence in the City of M iam i Beach. The pricing of the ACGO bonds generated
trem endous investor interest, w ith $398.5 m illion in orders for $101.7 m illion in taxable and tax-
exem pt bonds. This solid dem and enabled the City to reduce yields in the final pricing. The true
interest cost fo r the bonds is 4.4 5% fo r Series 2023A Tax-Exempt and 5.27% for the Series 2023B
Taxable.
The actual debt serv ice after pricing is appro xim ately $1.2 m illion lower that the pro jected debt service
utilized during the FY 2024 Budget process. This equates to a m illage increase for voter appro ved
debt serv ice of only .0966 m ills versus the .1222 m ills presented at the June 29, 2023 FERC Budget
Briefing.
W ith the bond proceeds in hand after the closing date of July 27, the Administration will now focus on
the im plem entation of pro jects w ith our arts and cultural partners.
If you have any questions or need additional info rm ation, please contact Jason D. Greene, Chief
Financial O fficer.
JDG,
16
315-2023