Resolution 2024-33099 RESOLUTION NO. 2024-33099 '
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE, MADE AT ITS MAY 23,
2024 MEETING, AND AUTHORIZING THE ADMINISTRATION TO EXECUTE A
DECLARATION OF OFFICIAL INTENT TO ISSUE THE SECOND TRANCHE OF
GENERAL OBLIGATION (G.O.) BONDS, NEIGHBORHOODS AND
INFRASTRUCTURE CATEGORY, IN THE AMOUNT OF $20.03 MILLION,
INCLUDING ISSUANCE COSTS.
WHEREAS, on November 6, 2018, the City of Miami Beach voters approved the issuance
of a $439 million General Obligation ("G.O.") Bond for a total of 57 projects; and
WHEREAS, Tranche 1 in the total amount of$152 million (net of cost of issuance related
expenses), was issued in 3 separate categories as follows: $87.1 million in Parks, Recreation &
Cultural Facilities; $28.2 million in Neighborhoods & Infrastructure; and $36.7 million in Police,
Fire & Public Safety Category; and
WHEREAS, an additional $6.2 million was subsequently appropriated from earned
interest income to assist in covering additional eligible project costs; and
WHEREAS, approximately 80% of the funds in the Neighborhoods & Infrastructure
Category have been spent to date and several projects will soon require additional funding beyond
what is currently available; and
WHEREAS, the time has come to determine the possibility of either issuing Tranche 2 in
the Neighborhoods and Infrastructure category, or an alternative funding vehicle to keep those
projects moving forward; and
WHEREAS, the G.O. Bonds will be repaid through the assessment, levy, and collection
of ad valorem tax on all taxable property within the City and the full faith, credit, and taxing power
of the City will be pledged to the payment of the principal and interest of the bonds; and
WHEREAS, in accordance with the provision of Section 2-278(b) governing the issuance
of bonds with respect to bonds subject to referendum procedures (attached to the Memorandum
as Exhibit A), the Administration's compliance with paragraphs 1 and 2 of Section 2-278(a) was
completed with the adoption of Resolution No. 2019-30754; and
WHEREAS, the portion of the projects for which the bonds are to be issued is
$19,830,000, as follows: $2,230,000 for GO#33 Street Tree Master Plan, $3,500,000 for GO#37
Sidewalk Improvements, 8,600,000 for GO#38 Street Pavement, $5,000,000 for GO#39 Seawalls
& Shorelines, and $500,000 for GO#42 Traffic Calming; and •
WHEREAS, the.City to date has not committed any proceeds for future projects that are
to be funded from future bond proceeds; and
WHEREAS, the Administration is not recommending the immediate issuance of G.O.
bonds but instead recommends for the City Commission to authorize the Administration to
execute a Declaration of Official Intent, which is defined as "a declaration of intent, in the form,
manner and time contemplated in the Reimbursement Regulations, that the advances for
expenditures referred to therein are reasonably expected to be reimbursed from the proceeds of
Bonds to be issued after those expenditures are paid"; and
WHEREAS, Resolution No. 2016-29612 (attached to the Memorandum as Exhibit B)
authorizes Declarations of Official Intent; and
WHEREAS, a prior Declaration of Official Intent is a legal mechanism that allows an issuer
to use its own funds initially for project expenses and later reimburse itself with the proceeds from
the sale of tax-exempt G.O. bonds; and
WHEREAS, in this case, the General Fund's reserves would be utilized to provide the
interim funding of the projects; and
WHEREAS, issuing G.O. bonds with a prior Declaration of Official Intent can be a cost-
effective strategy; and
WHEREAS, the Declaration of Official Intent will not be effective unless the bonds
providing moneys for the reimbursement are issued and the reimbursement for the projects
described above is made within the applicable period prescribed in the Treasury Regulations,
which is generally 18 months after the later of the date of the expenditure or the date the Project
is placed in service, but in no event later than three years after the date of the expenditure; and
WHEREAS, the Administration may return at a future date to request an increase in the
Tranche 2 authorization as additional projects are ready to proceed; and
WHEREAS, at its April 11, 2024 meeting, the G.O. Bond Oversight Committee passed a
motion endorsing the Administration's strategy, and on May 24, 2024, the Finance and Economic
Resiliency Committee ("FERC") moved the item to the City Commission with a favorable
recommendation; and
WHEREAS, the cost of issuance ("COI") for a debt issuance for this size is estimated at
$200,000, bringing the total issuance size to $20.03 million; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the Finance and Economic Resiliency
Committee, made at its May 23, 2024 meeting, and authorize the Administration to execute a
Declaration of Official Intent to issue the second tranche of General Obligation (G.O.) Bonds,
Neighborhoods and Infrastructure Category, in the amount of$20.03 million, including issuance
costs.
PASSED and ADOPTED this o?G day of .7 ye- , 24.
ven Meiner, Mayor
ATTEST: INCORP OKAYED: APPROVED AS TO
7112.1a) 2'.. :• � FORM & LANGUAGE
•••....,..•... 'N & FOR EXECUTION
Rafael E. Granado, City Clerk CH 26
City Attorney Date
•
Resolutions -C7 Q
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rickelle Williams, Interim City Manager
DATE: June 26, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY
COMMITTEE AT ITS MAY 23, 2024 MEETING TO AUTHORIZE THE
ADMINISTRATION TO EXECUTE A DECLARATION OF OFFICIAL INTENT TO
ISSUE THE SECOND TRANCHE OF GENERAL OBLIGATION (G.O.) BONDS,
NEIGHBORHOODS AND INFRASTRUCTURE CATEGORY, IN THE AMOUNT OF
$20.03 MILLION INCLUDING ISSUANCE COSTS.
RECOMMENDATION
It is recommended that the Mayor and City Commission adopt the Resolution.
BACKGROUND/HISTORY
The General Obligation Bond (G.O. Bond) program was approved by the voters of Miami Beach
in November 2018. Residents voted to approve the$439.0 million bond program,which includes
$169 million for parks, recreation facilities, and cultural facilities; $198 million for neighborhoods
and infrastructure; and $72 million for police, fire, and public safety. All 3 related ballot measures
passed with a support rate of—70%. The first tranche of new money funding (Tranche 1) in the
amount of $152 million (net of cost of issuance related expenses) was approved by the City
Commission with the goal to advance as many projects as possible. An additional $6.2 million
was appropriated from earned interest income to assist in covering additional eligible project
costs. A total of 43 out of the 57 voter approved projects have either been completed or are in
some form of active status. The funding allocated as part of Tranche 1 in the 3 separate bond
categories were:
• Parks, Recreation & Cultural Facilities: $87.1 million
• Neighborhoods& Infrastructure: $28.2 million
• Police, Fire & Public Safety: $36.7 million
The program is approaching its 5th year in May 2024 and the time has come to determine the
possibility of either issuing Tranche 2 in the Neighborhoods and Infrastructure category, or an
alternative funding vehicle to keep those projects moving forward. Approximately 80% of the
funds in this category have been spent to date and several projects will soon require additional
funding beyond what is currently available.
ANALYSIS
The G.O. Bonds will be repaid through the assessment, levy, and collection of ad valorem tax on
all taxable property within the City and the full faith, credit, and taxing power of the City will be
pledged to the payment of the principal and interest of the bonds. Issuance costs and expenses
will be paid from G.O. Bond proceeds. In accordance with the provision of Section 2-278(b)
(Exhibit A) procedures governing the issuance of bonds with respect to bonds subject to a
Page 499 of 1862
referendum, the Administration's compliance with paragraphs 1 and 2 of Section 2-278(a) was
completed with the adoption of Resolution 2019-30754.
The portion of the projects for which the bonds are to be issued is $19,830,000, as described in
Chart 1 below. The City to date has not committed any proceeds for future projects that are to be
funded from future bond proceeds.
CHART 1
� pat diJ , TRANCHE 2 FUTURE
„, i r TRANCHE 1
i I PROPOSED TRANCHES
GO#33:STREET TREE MASTER PLAN 5,000,000 2,770,000 2,230,000 0
GO#37:SIDEWALK IMPROVEMENTS 13,000,000 3,960,066 3,500,000 5,539,934
GO#38:STREET PAVEMENT 30,000,000 5,800,000 8,600,000 15,600,000
GO#39:SEAWALLS&SHORELINES 10,000,000 5,000,000 5,000,000 0
GO#42:TRAFFIC CALMING 2,000,000 1,500,000 500,000 0
%� »$ r_ r 19,030,066 19,830,000 21,139,934
Declaration of Official Intent
Currently, the Administration is not recommending the immediate issuance of G.O. bonds but to
instead request the Commission to authorize for the Administration to execute a Declaration of
Official Intent defined as:
"Declaration of Official Intent"means a declaration of intent, in the form, manner and
time contemplated in the Reimbursement Regulations, that the advances for
expenditures referred to therein are reasonably expected to be reimbursed from the
proceeds of Bonds to be issued after those expenditures are paid."
Issuing G.O. bonds with a prior Declaration of Official Intent can be a cost-effective strategy. A
prior Declaration of Official Intent is a legal mechanism that allows an issuer to use its own funds
initially for project expenses and later reimburse itself with the proceeds from the sale of tax-
exempt G.O. bonds. In this case, the General Fund's reserves would be utilized to provide the
interim funding of the projects.
The Declaration of Official Intent will not be effective unless the bonds providing moneys for the
reimbursement are issued and the reimbursement for the projects described in Chart 1 above is
made within the applicable period prescribed in the Treasury Regulations—generally, 18 months
after the later of the date of the expenditure or the date the Project is placed in service, but in no
event later than three years after the date of the expenditure. See attached Exhibit B for
Resolution 2016-29612 which authorizes Declarations of Official Intent. The Administration may
return at a future date to request an increase in the Tranche 2 authorization as additional projects
are ready to proceed.
Some advantages to this approach include:
• Timing and Flexibility: Delaying the issuance of bonds provides the City with flexibility in
terms of timing. It allows the City to initiate and fund a project using the City's reserves
while waiting for the most opportune moment to issue long-term bonds. This can be
advantageous in instances where market conditions are not favorable or when the project
timeline is uncertain.
Page 500 of 1862
• Reduced Interest Costs: By using internal funds initially, the City can avoid incurring
interest costs associated with long-term debt during the early stages of projects.
Taxpayers will not be taxed at this time. Debt service millage will not be increased until
after the actual issuance of the Bonds.
• Market Conditions: Delaying the issuance allows the City to monitor and take advantage
of favorable market conditions. If interest rates are expected to decrease or if there is
increased demand for bonds, the City may be able to secure more favorable terms,
ultimately lowering the overall cost of financing.
• Project Initiation Assessment: The delay provides the City with additional time to assess
when certain project milestones are reached. This may involve confirming that the project
is progressing as planned.
On April 11, 2024, the G.O. Bond Oversight Committee passed a motion endorsing the
Administration's strategy,and on May 24, 2024,the Finance and Economic Resiliency Committee
(FERC) moved the item to the City Commission with a favorable recommendation to execute a
Declaration of Official Intent to issue the second tranche of General Obligation Bonds,
Neighborhoods and Infrastructure Category, in the amount of$19.83 million.The amount required
for cost of issuance was not discussed at FERC. Cost of issuance (COI) for a debt issuance for
this size is estimated at$200,000. This would bring the total issuance size to $20.03 million.
FISCAL IMPACT STATEMENT
N/A
FINANCIAL INFORMATION
N/A
CONCLUSION
Based on the foregoing, the Administration recommends that the Mayor and City Commission of
the City of Miami Beach adopt the Resolution authorizing the Administration to execute a
Declaration of Official Intent (attached as Exhibit C) to issue the second tranche of General.
Obligation Bonds, Neighborhoods and Infrastructure Category, in the amount of $20.03 million,
including issuance costs..
Applicable Area
Citywide
Is this a "Residents Right to Know" item. Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No Yes
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s)and principal(s):
Department
•
Page 501 of 1862
G.O. Bond Program & Finance
Sponsor(s)
Co-sponsor(s)
Page 502 of 1862
Exhibit A
ORDINANCE 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
COMNIISSION 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 Governing 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 projects on account of which such
bonds are to be issued;
(b) The estimated annual revenues, if any,_to be generated by such project
. or projects; and
(c) The estimated annual cost of maintaining,repairing and operating such
project or projects.
2. Upon completion of the fiscal analysis in subsection (a)l, the proposed issuance
of bonds shall be first considered and reviewed by the City's Finance and
Citywide Projects Committee.
3. The City Commission shall hold two (2)public hearings, each advertised not less
than fifteen 015) days prior to the hearing,in order to obtain citizen input into the
proposed bond issuance.
(b) In the event the particular issuance of bonds is one that is subiect to referendum
Page 503 of 1862
approval,pursuant to Florida law,then the conditions in subsections(1) and(2)of section
(a) 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 affecting life, health, property or public safety, the
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 legal requirements 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 obligations.
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"may be 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 1st day of D ember ,2007.
PASSED and ADOPTED this 21st day of Novem. - ►0 y
ATTEST: . . • Ad,
MAYOR
//fitAlf/t-
David Dermer
CITY CLERK Robert Parcher APPROVED AS TO
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Page 504 of 1862
MIAMIBEACH
City of Miami Beach,1700 Convention Center Drive,Miami Beach,Florida 33139,www,miamibeachiLeov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
`----.6SECOND 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.
Page 505 of 1862
•
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 5l7ths
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:AGENDA12007knov07071RegularlFINAL 2nd reading commission memo for pre bond ordinance.doc
Page 506 of 1862
, ea MIAMIBEACH r:,:
, ,.,. •.. ,:. , CITY OF MIAlNI BEACH t.-
NOTICE OF PUBLIC TEARING
' ` . NOTICE is 1t iBr Ivan that a second read and
Commission of the City of Miami Beach,Florida In the Commission Chambers,3rd floor,i;dy Halt 700 •••,',•
Convention Center(rive,Miami Beach,Florida,on ,November 7,2007,at 11:00 a.m., to - .4
Consider An Ordinance Amending Chapter 94 Of The Code Of The City Of Miami Beach,
Florida, Entitled" al Assessments,"Ely Amending Article III Thereof,Entitled"Bonds"By Creating A •• •+'
New Section 94-96,Entitled 'Procedures Governing The issuance Of Bonds". •
However, in the event a run-off election Is held, the second reading and public hearing on this -
(( Ordinance shall not be held on November 7,2007.but shall instead be lieu}on Wednesday.November •...+
21,2001'at 11O0a.m.
Inquiries maybe directed to Department at(305)673-74se Finance -Ty
. • �;.•
• !STEMMED PARTIES ere invited to appear at this meeting,o�be represented by an a • :}
express their views in writing addressed to the City Commtssion,�lo the CityC agent or to
Center DrIve,1st Roar, lark, are Convention
public inspection during anal business hou�tna the City C Clerk's ordinance are Conventionilable for
Drive.1st Floor,City Hall,Miami Beach,Florida 33139.This IS Office, i700 continued
anda Center
•
circumstances additional legal notice would not be provided. 9 may be continued and under such
-a it •
Robert E.Percher,City.Cierk ."
m • City of Miami Beach
Pwauarrt to Section 286.0105,Fla.Scat,the City hereby advises the public that If a U, appeal any decision made by the City Commission with respectre1aon decides to :'
0 • or its hearing,such person must ensure that a to any matter proceedings
is at its meeting
o record Includ the testimony and evidence upon verbhb atim recoral d et the Rrrkee.This made, hich
o • constitute consent by the City for the introduction or admissionto (laerwise d' notice does not '•;f
00
evidence,nordoes it authorize challenges or appetite not otherwise a �,w.inadmissible or irrelevant r•
co •
• To requestthis material In accessible format, language into reters - '
persons with disabilities,and/or any accom on to review Mere, Information paltlop on ace in cess for
sponsored N►proceeding, please contact (305) 604.24en (voice!. (30S)873-721 .
yourrequest TTy users may also call 711 FFooridaor cm. five days in
Ad 6460 Relay Service).
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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 2006107and 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.
Advisory Board Recommendation:
N/A
Financial Information:
Source of Amount Account Approved
Funds: 1
2
3 —�
4
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Patricia Walker, Chief Financial Officer
Sign-Offs:
Department Director Assignt City Manager City Manager
PDW � JMG
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Page 508 of 1862
Exhibit B
RESOLUTION NO. 2016-29612
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING DECLARATIONS OF OFFICIAL INTENT
UNDER U.S. TREASURY REGULATIONS WITH RESPECT
TO REIMBURSEMENTS FROM BOND, NOTE AND OTHER
OBLIGATION PROCEEDS OF TEMPORARY ADVANCES
MADE FOR PAYMENTS PRIOR TO ISSUANCE, AND
RELATED MA 1"1'1 RS.
WHEREAS, United States Treasury Regulations §1.150-2 (the "Reimbursement
Regulations") prescribe conditions under which proceeds of bonds, notes or other obligations
("Bonds") used to reimburse advances made for capital and certain other expenditures ("Original
Expenditures")paid before the issuance of such Bonds will be deemed to be expended (or properly
allocated to expenditures) for purposes of Sections 103 and 141-150 of the Internal Revenue Code
of 1986, as amended (the "Code"), upon such reimbursement so that the proceeds so used will no
longer be subject to requirements or restrictions under those sections of the Code; and
WHEREAS, certain provisions of the Reimbursement Regulations require that there be a
Declaration of Official Intent not later than 60 days following payment of the Original Expenditures
expected to be reimbursed from proceeds of Bonds,and that the reimbursement occur within certain
prescribed time periods after an Original Expenditure is paid or after the property resulting from that
Original Expenditure is placed in service;and
WHEREAS, the Mayor and City Commission of the City of Miami Beach, Florida (the
"City")wishes to take steps to comply with the Reimbursement Regulations;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA:
Section 1. Definitions. The following definitions apply to the terms used herein:
"Authorized Office?'means the City Manager of the City, the Chief Financial Officer of the
City or in the absence of both,the Treasury and Debt Manager of the City.
"Declaration of Official Intent"means a declaration of intent, in the form,manner and time
contemplated in the Reimbursement Regulations, that the advances for expenditures referred to
therein are reasonably expected to be reimbursed from the proceeds of Bonds to be issued after
those expenditures are paid.
"Reimbursement" or "reimburse" means the restoration to the City of money temporarily
advanced from its own funds and spent for Original Expenditures before the issuance of the Bonds,
evidenced in writing by an allocation on the books and records of the City that shows the use of the
proceeds of the Bonds to restore the .money advanced for the Original Expenditures.
010-8268-6252/1/AMERICAS
Page 509 of 1862
"Reimbursement" or `reimburse" generally does not include the refunding or retiring of Bonds
previously issued and sold to,or borrowings from,unrelated entities.
Section 2. Authorization and Requirement of Declarations of Official Intent. Each
• Authorized Officer is authorized to prepare and sign Declarations of Official Intent in substantially
the form attached with respect to Original Expenditures to which the Reimbursement Regulations
apply, to be made from money temporarily advanced and that is reasonably expected to be
reimbursed (in accordance with applicable authorizations, policies and practices) from the proceeds
of Bonds, to make appropriate reimbursement and timely allocations from the proceeds of the
Bonds to reimburse such Original Expenditures, and to take any other actions as may be
appropriate, all at the times and in the manner required under the Reimbursement Regulations in
order for the reimbursement to be treated as an expenditure of such proceeds for purposes of
Sections 103 and 141 to 150 of the Code. No advance from any fund or account or order for
payment may be made for Original Expenditures (other than expenditures excepted from such
requirement under the Reimbursement Regulations) that are to be reimbursed subsequently from
proceeds of Bonds unless a Declaration of Official Intent with respect thereto is made within the
time required by the Reimbursement Regulations.
Section 3. Effective Date. This Resolution shall take effect immediately upon its
adoption.
PASSED AND ADOPTED this /9 day of A/oily,2016.
ayor
(Seal)
Attest:
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Page 510 of 1862
DECLARATION OF OFFICIAL INTENT
For Reimbursement of Expenditures from Bonds/Notes
This is a Declaration of Official Intent under U.S. Treasury Regulations for purposes of Sections
103 and 141 to 150 of the Internal Revenue Code of 1986,as amended(the"Code").
1. The undersigned,on behalf of the City of Miami Beach, Florida(the"City")declares that
the City reasonably expects that the capital and other expenditures described in
paragraph 2 (the "Project") will be reimbursed with the proceeds of"bonds" (as defined
in Section 150 of the Code). The maximum principal amount of bonds expected to be
issued for the Project is$
2. Description of capital and other expenditures to be reimbursed. [Complete either the first
option or the second option but do not use the second option unless the functional
purpose of the fund or account is generally descriptive of the purpose of the
expenditures]
Expenditures for(insert a general functional description of property,project,program
or purpose):
[OR]
Expenditures initially made from and to be reimbursed to the fund or account entitled
, the general functional purpose
of which fund or account is
The undersigned has been authorized by the City to make and sign this Declaration on
behalf of the City.
Date of Declaration: CITY OF MIAMI BEACH,FLORIDA
,20_
By
(Signature)
(Type or print Name and Title)
Caution: This Declaration of Official Intent will not be effective unless the bonds providing
moneys for the reimbursement are issued and the reimbursement for the Project
described above is made (by an allocation on the books and records identifying the
expenditures as in paragraph 2 above) within the applicable period prescribed in the
Treasury Regulations — generally, 18 months after the later of the date of the
expenditure or the date the Project is placed in service,but in no event later than three
years after the date of the expenditure.
010-8268.6252/1/AM ERICA5
Page 511 of 1862
INSTRUCTIONS
for
DECLARATION OF OFFICIAL INTENT
for
Reimbursement From Tax-Exempt Bonds/Notes
PURPOSE
The form to which these instructions pertain is intended for use under Treasury Regulations
§1.150-2 (the "Reimbursement Regulations") in order that capital and certain other expenditures
paid with moneys temporarily advanced from other funds that are reasonably expected to be
reimbursed from proceeds of subsequently issued notes, bonds or other obligations ("Bonds") may
qualify for such reimbursement. Failure to comply can result in the inability for federal income tax
purposes to treat proceeds of the Bonds used to reimburse the expenditures as spent for
arbitrage/rebate purposes. •With certain exceptions for qualified "preliminary expenditures" and
certain de minimis expenditures, a Declaration of Official Intent must be made not later than 60
days after payment of any expenditure expected to be reimbursed from proceeds of Bonds.
Declarations of Official Intent should not be made systematically for all expenditures or in
exaggerated amounts regardless of actual expectations,but only when it is realistically expected that
the expenditure will be reimbursed from the proceeds of Bonds. In general only capital
expenditures can be reimbursed from the proceeds of Bonds. "Capital expenditures" include
(subject to any more restrictive state law)any costs related to the acquisition or construction of land
or interests in real estate,buildings, structures,additions thereto, or other permanent improvements,
and restoration or betterments made to increase the value of property or substantially prolong its
useful life,and machinery,equipment,furniture and fixtures or other property having a useful life of
at.least one year or such longer period as is required by applicable state law. Costs of issuance of
the Bonds are capital expenditures. Certain other expenditures also qualify for reimbursement. The
Regulations do not apply to, and this form is not needed in connection with, the use of proceeds of
Bonds to finance expenditures paid on or after the date of issuance of the Bonds. This form also
generally is not needed in connection with the issuance of Bonds to refinance external borrowings
(taxable or tax-exempt).
INSTRUCTIONS
These instructions are based on the Reimbursement Regulations currently in effect. The
references are to the particular paragraphs on the form of Declaration of Official Intent.
Paragraph 1. Insert the anticipated maximum principal amount of Bonds expected to be
issued for the Project. The amount should include the maximum principal amount of all Bonds to
be issued for the Project (i.e., Bonds for reimbursement of prior expenditures and Bonds to finance
expenditures to be paid on or after the date of issuance of the Bonds). A Project includes any
property, project, or program (e.g., highway capital improvement program, hospital equipment
acquisition,or school building renovation).
Paragraph 2. The general description of the capital expenditures to be reimbursed may be
set forth in one of two ways --either by a functional description of the property, project or program
for which the expenditures are made—
Examples -- "highway capital improvement program"; "street and bridge improvements";
"hospital equipment acquisition"; "school buildings renovation";
or by identification•of the fund or account from which the money will be advanced to pay the
expenditures that will be reimbursed subsequently from Bonds, and a statement of the general
functional purpose of that fund or account--
010-8268-6252/1/AMERICAS
Page 512 of 1862
•
Example -- "parks and recreation fund, the general functional purpose of which fund or
account is recreational facility capital improvement program."
The second option concerning identification and description of the fund can be used where the fund
purpose, in effect, describes the generic purpose of the project, property or program, such as a
waterworks improvement for which money is advanced from the water utility capital improvement
fund. If the money is to be advanced from a general purpose fund such as the general fund or a
capital improvements fund that is available for any type of capital improvement,use the first option
by stating the generic function of the project,property or improvement.
501(c) Organizations. If the proceeds of the Bonds will be loaned to a 501(c)(3)
organization, either the 501(c)(3)organization or the issuer of the Bonds may make the Declaration
with respect to expenditures of the 501(c)(3)organization that are to be reimbursed.
2
010-8268-6252/VAMERtcAs
Page 513 of 1862
Resolutions -R7 J
•
MAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 19, 2016 •
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING DECLARATIONS OF OFFICIAL
INTENT UNDER U.S. TREASURY REGULATIONS WITH RESPECT TO
REIMBURSEMENTS FROM BOND, NOTE AND OTHER OBLIGATION
PROCEEDS OF TEMPORARY ADVANCES MADE FOR PAYMENTS PRIOR TO
ISSUANCE,AND RELATED MATTERS.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
This Resolution is intended for use under Treasury Regulations §1.150-2 (the "Reimbursement
Regulations") in order that capital and certain other expenditures paid with moneys temporarily
advanced from other funds that are reasonably expected to be reimbursed from proceeds of
subsequently issued notes, bonds or other obligations ("Bonds") may qualify for such
reimbursement. Failure to comply can result in the inability for federal income tax purposes to
treat proceeds of the Bonds used to reimburse the expenditures as spent for arbitrage/rebate
purposes. With certain exceptions for qualified "preliminary expenditures" and certain de
minimis expenditures, a Declaration of Official Intent must be made not later than 60 days after
payment of any expenditure expected to be reimbursed from proceeds of Bonds. Declarations
of Official Intent should not be made systematically for all expenditures or in exaggerated
amounts regardless of actual expectations, but only when it is realistically expected that the
expenditure will be reimbursed from the proceeds of Bonds. In general only capital
expenditures can be reimbursed from the proceeds of Bonds. "Capital expenditures" include
(subject to any more restrictive state law) any costs related to the acquisition or construction of
land or interests in real estate, buildings, structures, additions thereto, or other permanent
improvements, and restoration or betterments made to increase the value of property or
substantially prolong its useful life, and machinery, equipment, furniture and fixtures or other
property having a useful life of at least one year or such longer period as is required by
applicable state law. Costs of issuance of the Bonds are capital expenditures. Certain other
expenditures also qualify for reimbursement. The Regulations do not apply to, and
this Resolution is not needed in connection with, the use of proceeds of Bonds to finance
expenditures paid on or after the date of issuance of the Bonds. This Resolution also generally
is not needed in connection with the issuance of Bonds to refinance external borrowings
Page 1166 of 1614
Page 514 of 1862
(taxable or tax-exempt).
An Authorized Officer is authorized to prepare and sign a Declaration of Official Intent in the
form attached to this resolution with respect to the expenditures to which the reimbursement
regulations apply to be made from money temporarily advanced and that is reasonable
expected to be reimbursed from the proceeds of the bonds. The Authorized Officers are
defined in the resolution as the City Manager, the Chief Financial Officer, or in the absence of
both, the Treasury Manager.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida, adopt the attached resolution authorizing declarations of official intent under U.S.
Treasury Regulations with respect to reimbursements from bond, note and other obligation
proceeds of temporary advances made for payments prior to issuance, and related matters.
KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term
FINANCIAL INFORMATION
This Resolution does not have any financial impact. It only requires a Declaration of Intent to
reimburse the City from future "bonds" for expenditures made prior to the issuance of those
bonds.
Legislative Tracking
Finance
ATTACHMENTS;
Description
o Finance- Oct. 2016 Resolution
Page 1167.of 1614
Page 515 of 1862
DECLARATION OF OFFICIAL INTENT
For Reimbursement of Expenditures from Bonds/Notes
This is a Declaration of Official Intent under U.S. Treasury Regulations for purposes of Sections
103 and 141 to 150 of the Internal Revenue Code of 1986, as amended (the"Code").
1. The undersigned, on behalf of the City of Miami Beach, Florida(the"City") declares that
the City reasonably expects that the capital and other expenditures described in
paragraph 2 (the "Project") will be reimbursed with the proceeds of"bonds" (as defined
in Section 150 of the Code). The maximum principal amount of bonds expected to be
issued for the Project is $
2. Description of capital and other expenditures to be reimbursed. [Complete either the first
option or the second option but do not use the second option unless the functional
purpose of the fund or account is generally descriptive of the purpose of the
expenditures.]
Expenditures for(insert a general functional description of property,project,program
or purpose):
[OR]
Expenditures initially made from and to be reimbursed to the fund or account entitled
, the general functional purpose
of which fund or account is
•
The undersigned has been authorized by the City to make and sign this Declaration on
behalf of the City.
Date of Declaration: CITY OF MIAMI BEACH,FLORIDA
,20_
By
(Signature)
(Type or print Name and Title)
Caution: . This Declaration of Official Intent will not be effective unless the bonds providing
moneys for the reimbursement are issued and the reimbursement for the. Project
described above is made (by an allocation on the books and records identifying the
expenditures as in paragraph 2 above) within the applicable period prescribed in the
Treasury. Regulations — generally, 18 months after the later of the date of the
expenditure or the date the Project is placed in service,but in no event later than three
years after the date of the expenditure. .
•
Page 1170 of 1614
010.8268-6252/1/AMERICAS
Page 516 of 1862
INSTRUCTIONS
for
DECLARATION OF OFFICIAL INTENT
for
Reimbursement From Tax-Exempt Bonds/Notes
PURPOSE
The form to which these instructions pertain is intended for use under Treasury Regulations
§1.150-2 (the "Reimbursement Regulations") in order that capital and certain other expenditures
paid with moneys temporarily advanced from other funds that are reasonably expected to be
reimbursed from proceeds of subsequently issued notes, bonds or other obligations ("Bonds")may
qualify for such reimbursement. Failure to comply can result in the inability for federal income tax
purposes to treat proceeds of the Bonds used to reimburse the expenditures as spent for
arbitrage/rebate purposes. With certain exceptions for qualified "preliminary expenditures" and
certain de minimis expenditures, a Declaration of Official Intent must be made not later than 60
days after payment of any expenditure expected to be reimbursed from proceeds of Bonds.
Declarations of Official Intent should not be made systematically for all expenditures or in
exaggerated amounts regardless of actual expectations,but only when it is realistically expected that
the expenditure will be reimbursed from the proceeds of Bonds. In general only capital
expenditures can be reimbursed from the proceeds of Bonds. "Capital expenditures" include
(subject to any more restrictive state law) any costs related to the acquisition or construction of land
or interests in real estate, buildings, structures, additions thereto, or other permanent improvements,
and restoration or betterments made to increase the value of property or substantially prolong its
useful life,and machinery, equipment,furniture and fixtures or other property having a useful life of
at least one year or such longer period as is required by applicable state law. Costs of issuance of
the Bonds are capital expenditures. Certain other expenditures also qualify for reimbursement. The
Regulations do not apply to, and this form is not needed in connection with, the use of proceeds of
Bonds to finance expenditures paid on or after the date of issuance of the Bonds. This form also
generally is not needed in connection with the issuance of Bonds to refinance external borrowings
(taxable or tax-exempt).
INSTRUCTIONS
These instructions are based on the Reimbursement Regulations currently in effect. The
references are to the particular-paragraphs on the form of Declaration of Official Intent.
Paragraph 1. Insert the anticipated maximum principal amount of Bonds expected to be
issued for the Project. The amount should include the maximum principal amount of all Bonds to
be issued for the Project (i.e., Bonds for reimbursement of prior expenditures and Bonds to finance
expenditures to be paid on or after the date of issuance of the Bonds). A Project includes any
property, project, or program (e.g., highway capital improvement program, hospital equipment
acquisition, or school building renovation).
Paragraph 2. The general description of the capital expenditures to be reimbursed may be
set forth in one of two ways -- either by a functional description of the property,project or program
for which the expenditures are made--
Examples — "highway capital improvement program"; "street and bridge improvements";
"hospital equipment acquisition";"school buildings renovation";
or by identification of the fund or account from which the money will be advanced to pay the
expenditures that will be reimbursed subsequently from Bonds, and a statement of.the general
functional purpose of that fund or account--
Page 1171 of 1614
D30-8268-6252/1/AMERICAS
Page 517 of 1862 -
Example -- "parks and recreation fund, the general functional purpose of which fund or
account is recreational facility capital improvement program."
The second option concerning identification and description of the fund can be used where the fund
purpose, in effect, describes the generic purpose of the project, property or program, such as a
waterworks improvement for which money is advanced from the water utility capital improvement
fund. If the money is to be advanced from a general purpose fund such as the general fund or a
capital improvements fund that is available for any type of capital improvement,use the first option
by stating the generic function of the project,property or improvement.
501(c) Organizations. If the proceeds of the Bonds will be loaned to a 501(c)(3)
organization, either the 501(c)(3)organization or the issuer of the Bonds may make the Declaration
with respect to expenditures of the 501(c)(3)organization that are to be reimbursed.
•
•
Page 1172 of 1614
ow-8268.6252/1/AMERICAs
Page 518 of 1862
EXHIBIT C
DECLARATION OF OFFICIAL INTENT
For Reimbursement of Expenditures from Bonds/Notes
This is a Declaration of Official Intent under U.S.Treasury Regulations for purposes of Sections 103
and 141 to 150 of the Internal Revenue Code of 1986,as amended (the"Code").
1. The undersigned, on behalf of the City of Miami Beach, Florida (the "City") declares that
the City reasonably expects that the capital and other expenditures described in
paragraph 2 (the "Project") will be reimbursed with the proceeds of"bonds" (as defined
in Section 150 of the Code). The maximum principal amount of bonds expected to be
issued for the Project is$20,030,000.
2. Description of capital and other expenditures to be reimbursed.
Expenditures for General Obligation Neighborhoods and Infrastructure projects more
particularly described in Exhibit A attached hereto.
The undersigned has been authorized by the City to make and sign this Declaration on behalf
of the City.
Date of Declaration: CITY OF MIAMI BEACH, FLORIDA
, 2024
By
(Signature)
(Type or print Name and Title)
Caution: This Declaration of Official Intent will not be effective unless the bonds providing
moneys for the reimbursement are issued and the reimbursement for the Project
described above is made (by an allocation on the books and records identifying the
expenditures as in paragraph 2 above)within the applicable period prescribed in the
Treasury Regulations — generally, 18 months after the later of the date of the
expenditure or the date the Project is placed in service,but in no event later than three
years after the date of the expenditure.
110108751211\AMER ICAS
Page 519 of 1862
Exhibit A—List of General Obligation Neighborhoods and Infrastructure projects
GO#33 Street Tree Master Plan
GO#37 Sidewalk Improvements
GO#38 Street Pavement
GO#39 Seawalls and Shorelines
GO#42 Traffic Calming
110108751211\AM E R ICAS
Page 520 of 1862