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R5B-Amend Ch 102 Rate Of Tax To Be Paid On Rent Of Every Occupancy -Grieco-ffiutAvonANDclTYcoMMlSSloNoFTHEclwoFMlAMlBEAcH'FLoRlDA'AMENDlNGTHE CODE OF THE CITY OF MIAMI BEACH BY AMENDING CHAPTER 102, ENTITLED "TAXATION," BY AMENDING ARTICLE IV, ENTITLED..RESORT TAX,,,BY AMENDING SECTION 102.307, ENTITLED..IMPOSITION OF TAX; RATE,,,BY AMENDING SUBSECTION A THEREOF REGARDING THE RATE OF THE TAX TO BE PAID ON THE RENT OF EVERY OCCUPANCY OF A ROOM OR ROOMS IN ANY HOTEL, MOTEL, ROOMINGHOUSE, OR APARTMENT HOUSE IN THE CITY, PURSUANT TO SECTION 5.03(8) OF THE CITY CHARTER; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. Condensed Title: COMMISSION ITEM SUMMARY FIRST READING / PUBLIC HEARING Kev lntended Outcome Supported: Item Summary/Recommendation: FIRST READING PUBLIC HEARING The City is entitled to impose and collect a tax on the rent of every occupancy of a room or rooms in any hotel, motel, or apartment house, when the renting is for the period of occupancy for imposition of a transient rental tax pursuant to Florida Statute 212.03, as amended, and Section 5.03 of the City Charter (the "Resort Tax"). The current Resort Tax collected on transient rentals is three percent (3%). On August 12,2012, the electorate of the City of Miami Beach voted - by over 670/o ol the voters voting - in favor of increasing the Resort Tax on room rentals by an additional one percent (1%), with such additional 1% Reso( Tax to be "used solely for the purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center, including payment of debt service related thereto." The election results were certified by Resolution No. 2012-28004, and subsequently codified in Section 5.03(b) of the City Charter. The purpose of this Ordinance is to impose the additional 1o/o lax approved by the voters on August 12,2012 and lo therefore set the new Resort Tax rate at four percent (4%). ln accordance with Section 5.03(b) of the City Charter, the additional 1% Reso( Tax shall be used solely for the purpose of securing payment of the expansion, enlargement, renovation and improvement of the Miami Beach Convention Center (the "MBCC Project") and debt service related thereto. Following public hearings held on September 30, 2015 and October 14, 2015, the Mayor and City Commission adopted a Resolution, authorizing, subject to the passage of this ordinance, the issuance of Resort Tax Revenue Bonds, Series 2015, in the not-to-exceed amount of $240 million, for the purpose of financing a portion of the MBCC Project. The Resort Tax Bonds will be issued in a par amount of approximately $207.6 million. The additional 1% Resort Tax is anticipated to generate in excess of $12,000,000 on annual basis. Please see Exhibit A for the Resort Tax Bond Analysis. The additional 1% Resort Tax must be implemented before the Series 2015 Resort Tax bonds can be issued. Although the Administration anticipates that the additional 1% Resort Tax will be sufficient to pay for all debt service relatedto the Series 2015 bonds, all Resort Taxes will be pledged in an effort to strengthen the credit and resulting market reception to these bonds. . lmprove alliance with key business sectors, namely hospitality, arts, and international business with a focus on enhanced culture, entertainment, and tourism o Maximize the Miami Beach brand as a world-class destination Supporting Data (Surveys, Environmental Scan, etc.): . Environmental Scan - Convention Center Aftendance: 54% increase since 2004 o Communitv Survev - Averaqe resident attends events at the Convention Center twice The Frnance and CItywide Projects Committee, on August 28,2015, recommended the issuance of the ResortTax t of the Convention Financial lnformation : 'fr*"" x runa., Amount Account Approved Total lnterim Assistant Finance,Dlrector MBCC Department Director t-.^l fitv ManaSer AW fi MlH r[,fl(Ll JLM T U\ :\AGENDA\201 2'l\1% Resort Tal - 1st Reading AcEtlDA ITEM RS BW MIAMIBTACH DAYE 10-21-l\-19 g MIAMIBEACH City of Miomi Beoch, I 200 Convention Center Drive, Miomi Beoch, Florido 331 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: SUBJECT: THE CITY OF MIAMI B CODE OF THE CITY OF MIAMI BEACH BY AMENDING GHAPTER 102, ENTITLED "TAXATION," BY AMENDING ARTICLE IV, ENTITLED "RESORT TAX," BY AMENDING SECTION 102-307, ENTITLED "IMPOSITION OF TAX; RATE," BY AMENDING SUBSECTION A THEREOF REGARDING THE RATE OF THE TAX TO BE PAID ON THE RENT OF EVERY OCCUPANCY OF A ROOM OR ROOMS IN ANY HOTEL, MOTEL, ROOMINGHOUSE, OR APARTMENT HOUSE IN THE ctry, PURSUANT TO SECTION 5.03(8) OF THE ClrY CHARTER; PROVIDING FOR REPEALER, SEVERABILIW, CODIFICATION, AND AN EFFECTIVE DATE. ADMINISTRATION RECOMM ENDATION Approve the ordinance on first reading and schedule a second reading public hearing on October 28,2015. BACKGROUND The City is entitled to impose and collect a tax on the rent of every occupancy of a room or rooms in any hotel, motel, or apartment house, when the renting is for the period of occupancy for imposition of a transient rental tax pursuant to Florida Statute 212.03, as amended, and Section 5.03 of the City Charter (the "Resort Tax"). The current Resort Tax collected on transient rentals is three percent (3%). On August 14, 2012, the electorate of the City of Miami Beach voted - by over 670/o of the voters voting -- to increase the Resort Tax on room rentals by an additional one percent (1%), with such additional 1% ResortTaxto be "used solelyforthe purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center, including payment of debt service related thereto." ln Resolution No. 2012-28004, the City Commission adopted the certification of the official results of the August 14, 2012 special election, and subsequently codified the foregoing in Section 5.03(b) of the City Charter. The purpose of this Ordinance is to impose the additional 1o/o tax approved by the voters on August 14,2012 and to therefore set the new Resort Tax rate at four percent (4%). Mayor Philip Levine and Members the City Jimmy L. Morales, City Manager October 21,2015 AN ORDINANCE OF THE MA AND CITY COMMISSION OF FLORIDA, AMENDING THE F!RST READING PUBLIC HEARING 20 Commission Memorandum - October 21,2015 Resort Tax 17o lncrease Page 2 of 3 ln accordance with Section 5.03(b) of the City Charter, the additional 1% Resort Tax shall be used solely for the purpose of securing payment of the expansion, enlargement, renovation and improvement of the Miami Beach Convention Center (the "MBCC Project") and debt service related thereto. ANALYSIS Following public hearings held on September 30, 2015 and October 14,2015, the Mayor and City Commission adopted a Resolution, authorizing, subject to the passage of this ordinance, the issuance of Resort Tax Revenue Bonds, Series 2015, in the not-to- exceed amount of $240 million, for the purpose of financing a portion of the MBCC Project. The Resort Tax Bonds will be issued in a par amount of approximately $207.6 million. The additional 1o/o Resort Tax is anticipated to generate in excess of $12,000,000 on annual basis. Please see Exhibit A for the Resort Tax Bond Analysis. The additional lo/o Resort Tax must be implemented before the Series 2015 Resort Tax bonds can be issued. Although the Administration anticipates that the additional 1% Resort Tax will be sufficient to pay for all debt service related to the Series 2015 bonds, all Resort Taxes will be pledged in an effort to strengthen the credit and resulting market reception to these bonds. On May 21,2015, the Mayor and City Commission adopted Resolution No. 2015-29028, approving the CM-at-Risk Agreement between the City and Clark Construction Group, LLC (the "Agreement"), authorizing pre-construction services for the MBCC Project and specifying the terms and conditions for the development and negotiation of a Guaranteed Maximum Price ('GMP') Amendment to secure the delivery of the construction phase of the MBCC Project. On October 21,2015, the Mayor and City Commission will consider adoption of a Resolution approving the GMP Amendment in the amount of $515,458,058.00 for the MBCC Project, and which GMP Amendment, along with the Agreement, provides the definitive terms and conditions of the City's agreement for the development and expansion, enlargement, renovation and/or improvement of the MBCC Project. Once the above-referenced agreement is approved, the requirement of Section 5.03(b) of the City Charter that the additional 1% Resort Tax not be imposed until such time as the City has entered into an agreement for the MBCC Project will thereby be satisfied. City of Miami Beach businesses, engaged in transient rentals, will begin remitting the additional 1o/o lax on January 20, 2016 for the collection period commencing on December 1, 2015. These businesses will be sent notifications of the imposition of the additional 1o/o Resort Tax via mail and email. The City will also publish an announcement on our taxpayer's Resort Tax web filing and payment portal, as well as, the City's website. Conclusion The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve the ordinance on first reading and schedule a second reading public hearing on October 28,2015. 21 JLM/JWARWmmw% Commission Memorandum - October 21,2015 Resort Tax 1% lncrease Page 3 of 3 Attachment (presented in draft form): T:\AGENDA\201S\October\MBCC Oct 21\1% Resort Tax - 1st Reading 22 ORDINANCE NO. AN ORDINANCE OF THE MAYOR AND GITY COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, AMENDING THE CODE OF THE CIry OF MIAMI BEACH BY AMENDING CHAPTER 102, ENTITLED "TAXATION," BY AMENDING ARTICLE IV, ENTITLED..RESORT TAX," BY AMENDING SECTION 102.307, ENTITLED "IMPOSIflON OF TAX; RATE," BY AMENDING SUBSECTION A THEREOF REGARDING THE RATE OF THE TAX TO BE PAID ON THE RENT OF EVERY OCCUPANCY OF A ROOM OR ROOMS !N ANY HOTEL, MOTEL, ROOMINGHOUSE, OR APARTMENT HOUSE IN THE CITY, PURSUANT TO SECTION 5.03(8) OF THE CITY CHARTER; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the City is entitled to impose and collect a tax on the rent of every occupancy of a room or rooms in any hotel, motel, or apartment house when the renting is for the period of occupancy for imposition of a transient rental tax pursuant to Florida Statute 212.03, as amended, and Section 5.03 of the City Charter (the "Resort Tax"); and WHEREAS, in Resolution No. 2012-28004, the City Commission adopted the certification of the official results of the August 14, 2012, special election, whereby the electorate of the City of Miami Beach voted to impose an additional one percent (1%) on the Resort Tax, to be "used solely for the purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center, including payment of debt service related thereto," which provisions were subsequently codified in Section 5.03(b) of the City Charter; and WHEREAS, on May 21, 2015, the Mayor and City Commission adopted Resolution No. 2015-29028, approving the CM-at-Risk Agreement between the City and Clark Construction Group, LLC (the "Agreement"), authorizing pre-construction services for the expansion, enlargement, renovation and improvement of the Miami Beach Convention Center (the "MBCC Project") and specifying the terms and conditions for the development and negotiation of a Guaranteed Maximum Price ("GMP') Amendment to secure the delivery of the construction phase of the MBCC Project; and WHEREAS, on October 21, 2015, the Mayor and City Commission adopted a Resolution approving the GMP Amendment in the amount of $515,458,058.00 for the MBCC Project, and which GMP Amendment, along with the Agreement, provides the definitive terms and conditions of the City's agreement for the development and expansion, enlargement, renovation and/or improvement of the MBCC Project, thereby satisfying the requirement of Section 5.03(b) of the City Charter that the additional 1oh Resort Tax not be imposed until such time as the City has entered into an agreement for the MBCC Project; and 23 WHEREAS, on October 14, 2015, the Mayor and City Commission adopted a Resolution, authorizing, subject to the passage of this ordinance, the issuance of Resort Tax Revenue Bonds, Series 2015, in the not-to-exceed amount of $240 million, for the purpose of financing a portion of the MBCC Project; and WHEREAS, in accordance with Section 5.03(b) of the City Charter, the additional 1% Resort Tax shall be used solely for the purpose of securing payment of the MBCC Project and debt service related thereto. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND C!ry GOMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows: SECTION 1. That Article lV of Chapter 102 of the Miami Beach City Code is hereby amended as set forth below. CHAPTER 102 TAXATION Article lV. Resort Tax. Division lV. Tax. Section 102-307. lmposition of tax; rate. (a) There is hereby levied and there shall be paid a tax of thr€e four percent on the rent of every occupancy of a room or rooms in any hotel, motel, roominghouse, or apartment house in the city, and two percent upon the total sales price of all items of food, beverages, alcoholic beverages or wine sold at retail of any restaurant. (b) Such tax shall constitute a debt owed by the occupant or guest to the city, extinguished only by payment to the operator or to the city. The occupant or guest shall pay the tax to the operator of the hotel, motel, roominghouse, apartment house or restaurant at the time the rent or sales price is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the occupant's ceasing to occupy space in the hotel, motel, roominghouse or apartment house. 24 (c) The tax due on a transaction calling for the payment of rent or sales price ef from: Cenfs $0.50 to $0.99 ..... +Z 1.00 to 1.49 ..... 2 4 1.50 to 1.99 ..... 3 0 2.00 to 2.49 ..... 49 2.50 to 2.99 ..... 5 10 or on rents or sales in amounts of more than $3.00. hAro four percent shall be charged upon each dollar of price or rent, plus the above bracket charges upon any fractional part of a dollar in excess of even dollars. SECTION 2. SEVERABILITY. lf any section, sentence, clause, or word of this section is for any reason declared to be unenforceable or unconstitutional by a court of competent jurisdiction, the remaining portions shall not be affected. SECTION 3. REPEALER. Any ordinance, or part thereof, and/or any resolution, or part thereof, which is in conflict with this Ordinance, is hereby repealed to the extent of such conflict. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, 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, Florida, as amended. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section" or other appropriate word. SECTION 5. EFFEGTIVE DATE. This Ordinance shall take effect the _ day of ,2015. 25 PASSED and ADOPTED this day of ATTEST: Rafael E. Granado, City Clerk Underline denotes additions S+ri*e+nrcugn d enotes deletio ns (Sponsored by Commissioner Michael Grieco) ,2015. Philip Levine, Mayor APPNOVEDASTO FORM & I.ANGUAGE lFon ExEqJilor{ ,-[Atr ro-l - Weibmq iAr Dsb 4 26 BankofAm erba* Merrill Lynch EXHIBIT A TABLE OF CONTENTS CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary Numbers Page Sources and Uses of Funds 1 2Bond Summary Bond Pricing Statistics Bond Debt Service Form 8038 Statistics Debt Service Reserve Fund Annual Debt Service Coverage Oct 1"3, 2015 4:28 pm Prepared by Bank of America Merrill Lynch 27 Bankof Am erica* Merrill Lynch EXHIBIT A SOURCES AND USES OF FUNDS CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary Numbers Dated Date t2/L7120L5 Delivery Date L21t712015 Sources: Bond Proceeds: Par Amount Premium 207,570,000.00 23,962,700.95 23t,532,700.9s Uses: Project Fund Deposits: Project Fund 2L6,632,193.00 Other Fund Deposits: Debt Service Reserve Fund 13,665,500'00 Delivery Date Expenses: Cost of lssuance 350,000.00 Underwriter's Discount 881,528'32 t,231,528.32 3,479.63 231,532,700.95 Other Uses of Funds: Additional Proceeds Notes: Structured based on a fixed project amount of $2L6,632,t93, assumes no earnings. Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 1 28 Bankof America Merrill Lynch -*EXHIBIT A BOND SU MMARY STATISTICS CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminaf- Numbers Bond Component Par Value Price PVoflbp chanSe 0ated Date 0elivery Date First Coupon Last Maturity ArbitraSe Yield True lnterest Cost (TlC) Net lnterest Cost (NlC) All-ln TIC Average Coupon Average Life (years) Duration of lssue (years) Par Amount Bond Proceeds Total lnterest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service Underwriter's Fees (per S1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price D/r7l2o7s 12177/2,ts 06lotl2076 72/011204s 3.51792L% 4.t11332% 4.41891004 4.1237630/. 4.998037% 19.201 12.472 207,570,000.00 231,532,700.95 199,197,263.33 776,rL6,O90.70 406,767,263.33 13,665,500.00 13,579,025.85 4.746497 4.246897 111.119705 Average Average Coupon Life Bond Component Term Bond 2040 Term Bond 2045 102,065,000.00 114.344 46,350,000.00 709.174 59,155,000.00 108.571 4.994% 12.321 5.000% 23.053 5.000% 28.053 81,648.90 39,861.00 50,281.75 207.570.000.00 19.201 L7L,79L.65 Trc All-ln TIC Arbitrage Yield Par Value r Accrued lnterest + Premium (oiscount) - Underwriter's Discount - Cost of lssuance Expense - Other Amounts Target Value Target Date Yield Notes: Structured based on a fixed proiect amount of 5216,632,193, assumes no earnings. Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. 207,570,000.00 23,962,700.95 -88 1,528.32 207,570,000.00 23,962,700.95 -881,528.32 -350,000.00 207,570,000.00 23,962,700.95 230,65L,L72.63 L2lL7l20ts 4-1173320/. 230,30t,L72.63 L2l17l20LS 4.L23763% 231,532,700.95 L2h7/20ts 3.5L7921% Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 2 29 Bankof Am erica* illerrill Lynch EXHIBIT A BOND PRICING CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary Numbers Sond Component Maturity Date Amount Rate Yield Yield to Price Maturity Call Dat€ call Price Premium (-Discount) Bond Component: Term Bond 2040: Term Bond 2045: 16,272.55 207,s55.00 397,394.55 514,339.80 614,431.00 711,088.05 787,879.40 847,502.50 914,946.40 978,988.95 943,995.00 909,121.00 875,368.75 842,803.60 834,145.00 834,051.50 72/OU2O2s 72l0tl2O2s 72/0L/202s t2/01/202s L2l07/2O2s L2lOu2O2s t2/0L/202s t2loL/202s 12/0L/202s 12/0L1202s L2l07l2l2s 12/o7l2O2s L2lO7l2O2s t2l0rl202s t2/0L1202s L2lOuzl2s L2/07/202s L2/07/2025 1210L12025 7210L1202s L2/0L/2O16 56s,000 3.000% L2l0Ll2Ot7 3,350,000 4.0oo% t2l0tl2o78 3,48s,000 s.000% 12101120L9 3,660,000 s.000% 7210712020 3,84s,000 s.000% t2/0L/2027 4,035,000 5.000% r210u2022 4,23s,000 s.000% L2l0t/2o23 4,450,000 s.000% L2l0tl2i24 4,670,000 5.000% L2l0r/2O25 4,905,000 5.000% L2loll2o26 5,1so,0oo s.000% 1210112027 5,405,000 5.000% t210112028 s,67s,000 s.000% 12/0712029 s,960,000 s.000% L2/O7/2030 6,260,000 5.000% L2l0Ll203L 6,s70,000 s.000% L2l0t/2o32 6,900,000 s.000% t2l0t/2o33 7,245,000 s.000% 12/01/2034 7,610,000 s.000% 12/0t/2035 7,990,000 5.000% 102,065,000 L2l0L/2036 8,390,000 s.000% L2lotl2g37 8,805,000 s.000% t2l0L/2038 9,250,000 s.000% 1210712039 9,710,000 s.000% t2lol/204o 10,195,000 5.000% 45,350,000 L2loLlzML 10,705,000 s.oo0% 1210L12042 11,240,000 5.000% 12107/2043 11,80s,000 s.000% 7210712044 12,395,000 s.000% 72/0L/2045 13,010,000 s.ooo% 59,155,000 o.430% 0.800% L.O70% 1340% 1.630% 1.860% 2.1L0% 2.360% 2s40% 2.700% 2.870% 3.030% 3.L80% 3.320% 3.4L0% 3.480% 3.540% 3.590% 3.640% 3.690% 3.880% 3.8400/0 3.880% 3.880% 3.880% 3.950% 3.950% 3.950% 3.950% 3.9s0% 100.000 100.000 100.000 100.000 100.000 100.000 102.447 106.196 111.403 114.053 115.980 tt7.623 118.604 119.045 119.592 119.9S9 118.330 C 3.022% 116.820 C 3.287% 115.425 C 3.508% 114.L4r C 3.694% 113.325 C 3.822% 112.695 C 3.9220/6 112.158 C 4.0050/0 111.713 C 4.074% 111.270 C 4.136% 110.830 C 4.t93% 109.174 C 4.397% 109.174 C 4.39L% 109.174 C 4.39Lo 109.174 C 4.39Lo 109.174 C 4.39r% 108.571 C 4.477% 108.571 C 4.477% 108.571 C 4.477% 108.571 C 4.477% 108.571 C 4.477% 100.000 838,902.00 100.000 848,606.85 100.000 857,647.00 100.000 86s,317.00 74,640,376.90 100.000 759,698.60 100.000 807,770.70 100.000 848,595.00 100.000 890,795.40 100.000 935,289.30 4,252,L49.00 100.000 917,525.55 100.000 963,380.40 100.000 1,011,806.s5 100.000 L,062,375.45 100.000 1,11s,087.10 5,070,175.05 207,570,000 23.962,700.95 Oated Date Oelivery Date First Coupon Par Amount Premium Production LJnderuriter's Oiscount Purchase Price Accrued lnterest Net Proceeds Notes: structured based on a fixed project amount of 5216,632,193, assumes no earnings. cash funded osRF, assumes no earnings. Assumes ratings of A/A. t2h7l20Ls L2l17lz,Ls 06/01/20t6 207,s70,000.00 23,962,700.95 23L,532,700.95 111.544395% -881.528.32 -0.424690% 230,6sr,172.53 7L7.Lr9705% 230,651,172.53 Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 3 30 Bankof Am erica* Merrill Lynch EXHIBIT A BOND DEBT SERVICE CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary Numbers Dated Date Delivery Date Principal Coupon lnterest Debt Service tzlL7l20Ls 12/17/20Ls Period Ending L2/0L120L6 L2/oLl20t7 L2/oL/20!8 L2/OL/2019 l2lOLl2020 t2l0L/202L L2/0112022 L2lOu2023 L2/Otl2024 t2lor/202s L2lOrl2026 L2/Orl2027 L2/0t12028 L2/0L12029 t2loLl2030 L2/OLl203]- t2loll2032 7210L/2033 L2/01/2034 L2l0t/203s L2l0u2036 12/0L/2037 L210t12038 tzl0u2039 t2/otl2040 L2107/2041 L2l0u2042 L2/0L/2043 t2/oLl2044 12/0L/204s 665,000 3,3s0,000 3,485,000 3,660,000 3,845,000 4,035,000 4,23s,000 4,450,000 4,670,000 4,905,000 5,150,000 5,405,000 5,675,000 5,950,000 6,260,000 6,570,000 6,900,000 7,245,000 7,610,000 7,990,000 8,390,000 8,80s,000 9,250,000 9,710,000 10,195,000 10,70s,000 r.1,240,000 11,805,000 12,395,000 13,010,000 3.000% 9,872,513.33 10,537,s13.33 4.000% 10,311,750.00 13,661,750.00 5.000% 10,177,750.00 13,662,750.00 5.000% 10,003,500.00 13,663,s00.00 5.000% 9,820,500.00 13,665,500.00 5.000% 9,628,250.00 13,653,250.00 5.000% 9,426,500.00 13,661,500.00 5.000% 9,2L4,750.00 13,564,7s0.00 s.000% 8,992,250.00 t3,662,250.00 5.000% 8,7s8,750.00 13,653,750.00 s.000% 8,s13,s00.00 13,563,500.00 s.000% 8,2s6,000.00 13,661,000.00 5.000% 7,985,750.00 13,650,7s0.00 5.000% 7,702,000.00 13,662,000.00 5.000% 7,404,000.00 13,664,000.00 5.000% 7,091,000.00 13,661,000.00 s.000% 6,762,s00.00 13,662,s00.00 5.000v. 5,417,500.00 13,652,500.00 5.000% 5,055,250.00 13,665,250.00 5.000% 5,674,750.00 13,664,750.00 s.000% 5,275,2s0.00 13,66s,250.00 5.000% 4,8s5,7s0.00 13,650,750.00 5.000% 4,415,500.00 13,66s,500.00 5.000% 3,9s3,000.00 13,563,000.00 s.000% 3,467,s00.00 13,662,500.00 5.000% 2,9s7,7s0.00 L3,662,750.00 5.000% 2,422,s00.00 13,662,500.00 5.000% 1,850,500.00 13,665,500.00 s.000% 1,270,250.00 13,665,250.00 5.000% 5s0,500.00 13,560,500.00 207,570,000 Notes: Structured based on a fixed project amount of 5216,632,L93, assumes no earnings, Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. 199,t97,263.33 406,767,263.33 Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 4 31 Bankof Am erica* Merrill Lynch EXHIBIT A DEBT SERVICE RESERVE FUND CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary- Numbers Deposit lnterest Principal Debt Service Balance t2ltTlzols 13,56s,s00 L2/OLl204s - ,.a,uur,roo -13,66s,s0; 13'66s's00 13,665,500 0 13,665,500 -13,66s,500 Arbitrage Yield: 3.5L79206% Value of Negative Arbitrage: 8,857,781.95 Notes: Structured based on a fixed project amount of 5216,632,L93, assumes no earnings' Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 5 32 BankofAm erica* Merrill Lynch EXHIBIT A Date ANNUAL DEBT SERVICE COVERAGE CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminaf Numbers Debt Service Revenues Coverage t2/0L12076 L2IOLl2077 ]-2/otl2oL8 L2/01,120L9 L2/0L/2020 t2l0L/202L L2lot/2022 7210L12023 L2l0L/2024 t2loLl202s t2l0L/2026 t210L12027 L2lOtl2028 t2loLl2029 ].,2101,12030 L2l0t/2031 L2l0t/2032 72lOLl2033 12/0u2034 t2l0u203s L2l0t/2036 12lOLl2037 L2/0L12038 L2loLl2039 L2IOL/2040 tzloLl2o4L L2/0],/2042 L2loL/2043 12lOLl2044 L2lOLl2O4s 10,537,513.33 13,661,750.00 13,662,750.00 13,663,500.00 13,655,500.00 13,663,250.00 13,561,s00.00 13,664,750.00 13,662,250.00 13,663,750.00 13,653,500.00 13,561,000.00 13,660,750.00 13,662,000.00 13,664,000,00 13,661,000.00 13,662,500.00 13,662,500.00 13,665,250.00 13,664,750.00 13,665,250.00 13,660,750.00 13,565,500.00 13,653,000.00 13,662,500.00 13,662,750.00 13,552,500.00 13,665,500.00 13,665,2s0.00 13,660,s00.00 11,066,590.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,715.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,715.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,715.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,715.00 83,308,716.00 83,308,716.00 83,308,716.00 83,308,715.00 83.308,716.00 L05.02t% 609.795% 609.757% 609.777% 609.628% 609.728/o 609.807/o 609.66L% 609.773% 609.706% 609.7t7y. 609.829% 609.840% 609.784/o 609.695% 609.829% 609.762% 609.7620/o 609.639% 609.66t% 609.639% 609.840% 609.628% 609.740% 609.762% 609.75L% 609.762% 609.628% 609.639% 609.851% 406,767,263.33 2,427,0L9,354.00 Notes: Structured based on a fixed project amount of 5216,632,L93, assumes no earnings. Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 6 33 Bankof Am erica'? Merrill Lynch EXHIBIT A Bond Component 0ate FORM 8038 STATISTICS CITY OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 20L5 Preliminary Numbers Dated Date 72117/20L5 Delivery Date L2lL7l20L5 Principal Coupon lssue Price Redemption at Maturity Bond Component: Term Bond 2040: Term Bond 2045: 12107/2Ot6 L2l0L/2017 t2/0L/2018 L2lOL/2079 t2lot/2020 t2/0u2021 72/O112022 721OL12023 L2lOtl2024 L2lOLl202s 12loL/2026 12/O112027 t2/0112028 12/0112029 72/0112O3O L2l0rl2037 L2107/2032 L2l0L/2033 t2/0L/2034 t2/0t1203s 66s,000.00 3,3s0,000.00 3,485,000.00 3,660,000.00 3,845,000.00 4,035,000.00 4,23s,000.00 4,450,000.00 4,670,000.00 4,905,000.00 5,150,000.00 5,405,000.00 5,675,000.00 5,960,000.00 6,260,000.00 6,570,000.00 6,900,000.00 7,245,000.00 7,610,000.00 7,990,000.00 3.000% 702.M7 4.000% 106.196 5.000% 111.403 5.000% 114.053 5.000% 11s.980 5.000% 117.623 5.000% 118.604 5.000% 119.045 5.000% 7L9.592 5.000% 119.959 5.OO0% 118.330 s.000% 115.820 5.000% 115.425 5.000% 114.141 5.000% 113.325 5.000% 112.695 5.000% 112.158 5.000% 111.713 5.000% Ltt.270 5.000% 110.830 5.000% 109.174 5.000% Lo9.L74 5.000% r09.L74 5.000% 109.L74 5.@0% 709.L74 5.000% 108.571 5.000% 108.571 5.000% 108.571 5.000% 108.571 5.000% 108.571 68t,272.55 3,557,566.00 3,882,394.55 4,L74,339.80 4,459,431.00 4,746,088.05 5,022,879.40 5,297,sO2.50 5,584,946.40 5,883,988.95 6,093,995.00 6,314,121.00 6,550,368.75 6,802,803.60 7,O94,745.OO 7,404,061.50 7,73AP02.00 8,093,605.8s 8,467,647.O0 8,855,317.00 9,159,698.60 9,6L2,770.70 10,098,595.00 10,600,795.40 11,130,289.30 Ll,622,525.55 12,203,380.40 r2,816,806.55 73,457,375.45 14,125,087.10 665,000.00 3,350,000.00 3,48s,000.00 3,660,000.00 3,845,000.00 4,03s,000.00 4,235,000.00 4,4s0,000.00 4,670,000.00 4,905,000.00 5,150,000.00 5,405,000.00 5,575,000.00 s,960,000.00 6,260,000.00 6,570,000.00 5,900,000.00 7,245,000.00 7,610,000.00 7,990,000.00 8,390,000.00 8,805,000.00 9,250,000.00 9,710,000.00 10,195,000.00 10,705,000.00 11,240,000.00 r1,805,000.00 12,395,000.00 13,010,000.00 L2l0tl2o36 8,390,000.00 L2lorl203? 8,80s,000.00 t2lou2038 9,2s0,000.00 t2/0112039 9,710,000.00 72107120p,0 10,19s,000.00 t2/oLl204L 10,70s,000.00 t2/oL12042 11,240,000.00 t2/0t/2043 11,805,000.00 l2lot/2044 12,39s,000.00 72/01/2045 13,010,000.00 207,570,000.o0 231,532,700.95 207,570,000.00 Maturity 0ate lnterest Rate stated weighted lssue Redemption Average Price at Maturity Maturity Yield Final Maturity Entire lssue t2/0t/204s 5.000% 14,125,087.10 13,010,000.00 - 237,532,700.95 207,570,000.00 19.0035 1.5t79% Proceeds used for accrued interest Proceeds used for bond issuance costs (including underwriters'discount) Proceeds used for credit enhancement Proceeds allocated to reasonably required reserue or replacement fund 0.00 1,237,52432 0.00 13,665,500.00 Notes: Structured based on a fixed project amount of S216,632,193, assumes no earnings Cash funded DSRF, assumes no earnings. Assumes ratings ofAlA. Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 7 34 Bankof Am erica* Merrill Lynch EXHIBIT A DISCLAIMER CIW OF MIAMI BEACH, FLORIDA Resort Tax Revenue Bonds, Series 2015 Preliminary Numbers BofAML lS NOT YOUR MUN|CIPAL ADVISOR OR F|DUCIARY. Bank of America Merrill Lynch ('BofAML') is providing the information contained herein for discussion purposes only either as an underwriter or in anticipation of being engaged to serve as an underwriter. By providing the information contained herein pursuant to the underwriter exclusion provided under SEC Rule 15Ba1-1(d)(2)(i), BofAML is not acting as your'municipal advisor' within the meaning of Section 158 of the Securities Exchange Act of 1934, as amended (the 'Act'), and does not owe a fiduciary duty to you pursuant to the Act with respect to the information and material contained in this communication. BofAML is either serving as an underwriter or is seeking to serve as an underwriter on a future transaction and not as a financial advisor or municipal advisor. The primary role of BofAML, as an underwriter, is to purchase securities with a view to distribution in an arm's-length commercial transaction between you and BofAML and BofAML has financial and other interests that differ from yours. BofAML is acting for its own interests. You should discuss any information and material contained in this communication with any and all of your own internal or external municipal and/or financial, legal, accounting, tax and other advisors and experts, as applicable, to the extent you deem appropriate before acting on this information or material. This material has been prepared by the Public Finance Group and is not a research report and is not a product ofthe fixed income research department of BofAML. This material is for information purposes only, is intended solely for your use, and may not be reproduced, disseminated, quoted or referred to in whole or in part, without our written consent. This material does not constitute an offer or solicitation to sell or purchase any securities and is not a commitment by BofAML or any of its affiliates to provide or arrange any financing for any transaction or to purchase any security in connection therewith. The calculations contained herein are based upon assumptions and information that either you or your advisors provided to BofAML or which BofAML deems in its sole discretion to be appropriate. BofAML makes no representation or warranty as to the accuracy or completeness of this material or these calculations and any and all liability to you or any third parties relating to this material or the calculations is expressly disclaimed. The material and calculations made available to you may not be similar to the information generated by BofAML's or its affiliates proprietary models or valuations that are used for its own purposes or to the models or valuations available from other sources including from other dealers. BofAML assumes no obligation to update or otherwise revise these materials. Values generated by the data or calculations may not reflect actual prices or values that can be obtained in the market at that time and the calculations should not be relied upon for any tax, accounting, legal or other purpose. Notes: Structured based on a fixed project amount of 5216,632,193, assumes no earnings. Cash funded DSRF, assumes no earnings. Assumes ratings of A/A. Oct 13, 2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 8 35 THIS PAGE INTENTIONALLY LEFT BLANK 36