Loading...
HomeMy WebLinkAboutResolution 2025-33984RESOLUTION NO. 2025-33984 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 SEPTEMBER 26, 2025 MEETING, AND AUTHORIZING THE ADMINISTRATION TO EXECUTE A DECLARATION OF OFFICIAL INTENT TO ISSUE ADDITIONAL BONDS OF GENERAL OBLIGATION (G.O.) BOND PROGRAM, NEIGHBORHOODS AND INFRASTRUCTURE CATEGORY, IN THE AMOUNT OF $82.085 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, on June 26, 2024, via Resolution # 2024-33099, the City Commission approved an initial Declaration of Intent to Issue additional bonds of G.O. Bond funding for the Neighborhoods & Infrastructure Category, totaling $20,030,000, including issuance costs ("the 2024 Declaration of Intent to Issue"); and WHEREAS, approximately 87% of the funds in the Neighborhoods & Infrastructure Category for Tranche 1 have been spent to date and 25% of the funds approved under the 2024 Declaration of Intent to Issue have been utilized 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 additional bonds 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 $81,282,000, as follows: $18,451,000 for GO#31 Ocean Drive Corridor, $9,000,000 for GO#34 Above Ground Improvements, $9,602,384 for GO#36 Washington Avenue Corridor, $5,539,934 for GO#37 for Sidewalk Improvements, $15,600,000 for GO#38 for Street Pavement, $12,468,682 for GO#41 for 4181 Street Corridor, $2,620,000 for GO#43 for Bike Lanes and Shared Use Path, and $8,000,000 for GO#44 North Shore Neighborhood; 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, on September 25, 2025, the Finance and Economic Resiliency Committee ("FERC") moved the item to the City Commission with a favorable recommendation, and on November 20, 2025, the G.O. Bond Oversight Committee passed a motion endorsing the Administration's strategy; and WHEREAS, the cost of issuance ("COP') for a debt issuance for this size is estimated at $803,000, bringing the total issuance size to $82.085 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 September 26,2025 meeting, and authorize the Administration to execute a Declaration of Official Intent to issue additional funding of General Obligation Bonds, Neighborhoods and Infrastructure Category, in the amount of $82.085 million, including issuance costs. PASSED and ADOPTED this (7 day of j "&Wtt/ , 2025. ATTEST: M1 ' Steven Meiner, Mayor Rafael E. Granado, City Clerk DEC 2 2 2025 APPROVED AS TO FORM &LANGUAGE & FOR EXECUTION I2lsJzors EXHIBIT A ORDINANCE NO. 2007-3582 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MUM 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 COMMISSION 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 reauirements 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 oroiect_or uroiects on account of which such bonds are to be issued: (b) The estimated annual revenues if any, to be generated by such proiect . or projects: and (c) The estimated annual cost of maintaining repairing and operating such proiect or projects. 2. Upon completion of the fiscal analysis in subsection Wl the proposed issuance of bonds shall be first considered and reviewed by the City's Finance and Citvwide Proiects Committee. 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 sball become and be made part of the Code of the City of Miami Beach w 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 th PASSED and ADOPTED this 21st ATTEST: . n MAYOR David Darmer CITYCLBRK Robert Parchar APPROVED AS TO rwmwcuaw_asps-osrnemw-r,om ms insaw;mmee-omt2nd asad;rs-Final i0-2MFMM&LANGUAGE O :OUT 0 22 BJ essay„, m MIAMI BEACH City of Miem1 heath, 1700 Cmv M.n Cener Dm ,Miami Beach, Florida 33139, waw.miomibeathfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonzalez, City Manage READING DATE: November 21, 2007 v PUBLICUBLIC HEARING SU9JECT; 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 bands 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. 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. JMGlPDW T:%GENDffi2007nw070M.gulaO 1ML 2nd reading commbsion memo for pro bond ordinance.doc GO COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Amending Chapter 2 Of The Code Of The City Of Miami Beach, Florida, Entitled "Finance" By Amending Anicle V Thereof, Entitled "Bonds; By Creating A New Section 2-278, Entitled "Procedures Governing The Issuance Of Bonds"; Providing For Repealer; Severebility; 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 ratio . 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 2000101 to AA- in FY 2008/07and Moody's from A in FY 2000101 to AA3 in FY2D08/07. Issue: Shall the City Commission approve new procedures governing the issuance of bonds? 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. Advisory Board Recommendation: WA Source of Funds: 1-1 OBPI Financial Impact CI Clerk's Office Legislative Tracking: PaMcia Walker, Chief Financial Officer Sign -Offs: Department Director Ass nt lty Manager City Manager PDW JMG T:AGENDA=N I(MRWWar dm ing We wd eNlnd,Ea Sudm q..d / ) m MIAMIBEACH AGENDA RSA �l �1J-G'1 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 MATTERS. 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 Intemal 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'l 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 Officer" 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 forth, 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. CIM2686252/1/AMEPIU "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 mariner 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 j L_ day of OCIL" IL-- " (Seal) Attest: r---1 J APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION .rnl .(' 9 s 16 City Attorney r(,v Date 01082M 6252/1/AMERIC S 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): L] Expenditures initially made from and to be reimbursed to the fund or account entitled the general fimctional purpose of which d 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 120 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 appliable 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. 01682686252/VAMEPIC S 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 minmis 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 pemument improvements, and restoration or betterments made to increase the value of property or substantially prolong its usefid 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. Pamgmph 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, protect, or program (e.g., highway capital improvement program, hospital equipment acquisition, or school building renovation). ParuHaoh 2. The general description of the capital expenditures to be reimbursed maybe 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 identificationofthe 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 -- moarcasrsnp/WraiM Example -- 'barks 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. 01W 251 AMrRIW MIAMI 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 rates, bonds or other obligations ('Bonds') may quality 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 arbdragehebate purposes. With certain exceptions for qualified "preliminary expenditures' and certaini, m rim s 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 rat 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 (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, rate and other obligation proceeds of temporary advances made for payments prior to issuance, and related matters. 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 ❑ Finance - Oct. 2016 Resolution Page 1167 of 1614 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 S 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 generaffy descriptive of the purpose of the expenditures.] Expenditures for (insert a general functional description of property, project, program or purpose): L] Expenditures initially made from and to be reimbursed to the fund or account entitled the general functional purpose of which rid 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 WANE 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 Proiect 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 01"2M252/1/RMM1W 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 in purposes to treat proceeds of the Bonds used to reimburse the expenditures as spent for arbitragehebate pmposes. 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 die value of property or substantially proton g its useful fife, and machinery, equipment, furniture and fixtures or other property having a useful life of at least one year or such longer period see 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 mpenditures 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). Paragrml12. The general description of the capital expenditures to be reimbursed maybe set forth in one of two ways -- either by a functional description of the property, projector 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 -- MM2M4151JtIWM1W Page 1171 of 1614 Example -- `barks and recreation fund, the general fractional purpose of which fund or account is recreational facility capital improvement oromam" The second option concerning identification and description of the fund can be used where the Pond 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 firm 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) Oreanizations. 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 OMS26662S2/1/AMFPIC S Resolutions - C7 U MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: December 17, 2025 TITLE: 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 SEPTEMBER 26, 2025 MEETING, AND AUTHORIZING THE ADMINISTRATION TO EXECUTE A DECLARATION OF OFFICIAL INTENT TO ISSUE ADDITIONAL BONDS OF GENERAL OBLIGATION (G.O.) BOND PROGRAM, NEIGHBORHOODS AND INFRASTRUCTURE CATEGORY, IN THE AMOUNT OF $82.085 MILLION INCLUDING ISSUANCE COSTS. RECOMMENDATION The Administration recommends the City Commission approve an authorization for the Administration to execute a Declaration of Official Intent to issue additional funding of General Obligation Bonds, Neighborhoods and Infrastructure Category, in the amount of $82.085 million, including issuance costs. 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, million 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 $151.1 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 $9.6 million was appropriated from earned interest income to assist in covering additional eligible project costs. A total of 45 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 was as follows: • Parks, Recreation & Cultural Facilities: $86.7 million • Neighborhoods & Infrastructure: $28million • Police, Fire & Public Safety: $36.4 million In June 2024, via Resolution # 2024-33099, the City Commission approved an initial Declaration of Intent to Issue additional bonds of G.O. Bond funding for the Neighborhoods & Infrastructure Category, totaling $20,030,000, including issuance costs ('the 2024 Declaration of Intent to Issue"). This allowed the continuation of 5 projects: Street Tree Master Plan, Sidewalk Improvements, Street Paving, Seawalls & Shorelines, and Traffic Calming. To date, approximately 87% of Tranche 1 funds in the Infrastructure Category, and 25% of the funds approved under the 2024 Declaration of Intent to Issue have been utilized. Several projects will soon require additional funding beyond what is currently available. 1105 of 3458 ANALYSIS To be able to continue to advance projects within the Neighborhoods & Infrastructure category, it is now necessary to assess the possibility of expanding the previously approved Declaration of Intent to Issue. The portion of the projects for which the bonds are to be issued is $81,282,000, as described in Table 1 below. The City has not committed any future bond proceeds to upcoming projects. TABLE 1 W4l: GCEMI MW WRRW or11L ewSET 5*a�n M.MMO ? OM= 53 11 wooer l,Se.M0 oEarmor a.neeto aruFow 0 I FM I oen�rs mraoacm ' �� 1a,151LM 0 Mrl 1"M0 W42: FM1I11e6Lu6lEIG1430RIeDD WN PXM rS- I== 1.OM.OM I== 3pM,M0 0 0 0 W43:STRFFTTREELLISTERP am= 5,0M.M0 2.M= zM.M0 AMMO 0 0 W44: ra01E CADUDMMiDV Ws 43.01= 43AMM0 1112M0 1,11= 0 am)= '32MSM0 45:RAlfSOPHb: tEraeORMDD ID.MOMO IDMOMO 0 0 0 5 M M.M0 oo 5 WA TON WRRDDR 10.M00M 10MOM0 ]Willa 3Tia15 0 %=,. 0 W4I 13.=3 11=M0 3MO055 am 3SMM0 SMH T P,WE3EM W.MM0 MMOMO 5MMO SMM?M A== 155MM0Ill5l5WiF1fE5 10.M.M 10➢ 1M 5.MOM0 SOM. MO 5== 0 0 WRIZDOR MMOM0 15M8.025 2531115 25S.3M 0 IZ M8.M3 0 tIM Ir3ee M Pf=_ _ E' S IIM = 14== a 0 0 0 140MM0CCNMNG a�j2== 20 = 2.M0,M0 I== t.W= SM.OM 0 0 sSSIW USE PAT- =0TM0 5.ffi.e4 2.3MM0 SWLW 0 MM0 0 1514xE lEABDR C _i:Jb0 am= 0 0 0 10MM0 0 tern aa, 1^M 1 11110 Fr1isYJ M• WARM M3, M iii $4M for Town Center and $5M for South Pointe ($9M Total) 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 by 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 referendum, the Administration's compliance with paragraphs 1 and 2 of Section 2-278(a) was completed with the adoption of Resolution 2019-30754. 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 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." 1106 of 3458 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 i mless 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. • 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 lake 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. • Proiect 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 September 25, 2025, the Finance and Economic Resiliency Committee (FERC) forwarded to the City Commission a recommendation to authorize the Administration to execute a Declaration of Official Intent to Issue in the amount of $72,282,000. Though the detail per project was correctly listed, the total was incorrectly calculated. This amount inadvertently excluded a $9,000,000 allocation for GO#34: Above Ground Improvements due to a scrivener's error, resulting in an understated total. The correct total was $81.282 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 $803,000. This would bring the total issuance size to $82.085 million. On November 20, 2025, the G.O. Bond Oversight Committee passed a motion endorsing the Administration's strategy to execute a second Declaration of Intent to Issue for the projects detailed in Table 1. 1107 of 3458 FISCAL IMPACT STATEMENT Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: hftr)s://www.miamibeachf.gov/city-hall/city-clerklmeeting-notices/ FINANCIAL INFORMATION CONCLUSION The Administration recommends the City Commission approve an authorization for the Administration to execute a Declaration of Official Intent to issue additional funding of General Obligation Bonds, Neighborhoods and Infrastructure Category, in the amount of $82.085 million, including issuance costs. Applicable Area Citywide s this a "Residents Ria ht to Know" Rem ursuant to City Code Section 2-17? No Is this item related to a G.O. Bond Project? Yes Was this Agenda Item initially requested by a lobbvist which as defined in Code Sec. 2-481 includes a principal engaged in lobbvina? No If so, specify the name of lobbyist(s) and principal(s): Department Finance Sponsor(sl Co-sponsor(e) Condensed Title Issue Additional G.O. Bonds, Neighborhoods & Infrastructure Category. FIN Previous Action (For City Clerk Use Only) 1108 of 3458 1109 of 3458 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 MIAhII 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 COMMISSION OF THE CITY OF MIAhII 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 Governine the Issuance of Bonds. (a) Prior to the adoption by the City Commission of the final resolution annrovina the issuance of any bonds by the City, the following requirements shall be complied with I. 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: 2. (a) The estimated cost of the oroiect or projects on account of which such bonds are to be issued: (bl The estimated annual revenues, if any, to be generated by such oroiect . or projects: and (c) The estimated annual cost of maintaining repairing and operating such oroiect or projects. 1110 of 3458 (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 refmance 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. SEVERABD.ITY. 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 tat PASSED and ADOPTED this 21st day of ATTEST: q MAYOR David Dermer CrrY CLERK rt Robert Parcher APPROVED AS TO FAW \AGURVIPSOS-0RD\9 &-a te,Vo ina me is a - CM(end Reding- F[ml 1an-f;ORM& LANGUAGE O CUTION 1 1111 of 3458 m MIAMI BEACH City of Miami Beach, 77CO Convention Cenim Drive, H.1 Beoch, Florida 33139, cow v.mlonlbeochB.go. COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonzalez, City Manage SECOND 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 necessaryto 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. 1112 of 3458 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 517ths 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: WGENDAITOD7 nov0 D7V egular%FML ind reading wmmisaion memo for pre bond ordinance.doc 1113 of 3458 1114 of 3458 COMMISSION ITEM SUMMARY Condensed Title: An Ordinance Amending Chapter 2 Of The Code Of The City Of Miami Beach, Florida, Entitled'I'mance' By Amending Article V Thereof, Entitled "Bonds,' By Creating A New Section 2-278, Entitled 'Procedures Governing The Issuance Of Bonds'; Providing For Repealer, Severab ility; 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 At in FY 2000I01 to AA- in FY 20D6107and Moody's from A in FY 2000101 to AA3 in FY21306107. Issue: Shall the City Commission approve new procedures governing the Issuance of bonds? 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. Adv cry Board Recommendation: WA Financial Information: Source of Funds: F-1 l)BPI To Financial Impact Sr C Clerk's Office Legislative Tracking: PatriWa Walker, Chief Financial Officer Stan -Offs: Department Director Awe nl CNy Manager City Manager PDW40JMG A,Wultnd,e it pre bond .NinM Suplmery doc /' AI m MIAMIBEACH AGENDA ITEM IRZo� lw 1115 of 3458 DATE RESOLUTION NO. 2016-29612 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI PEACH, 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 PAYMENT'S PRIOR TO ISSUANCE, AND RELATED MATTERS. 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 Officer"means the City Manager of the City, the Chief Financial Officer of the City or to 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. owaxseszs:ivAWRn 1116 of 3458 "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 Intcat. 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 j L_ day of (Seal) Attest: / APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION .Ix� ,(' 9 8l City Altomey tln, Date avaeeue 252niu.Eaus 1117 of 3458 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 S 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 junctional purpose of the fund or account is generally descriptive of the purpose of the expendirum&I Expenditures for (insert a general functional description of property, project, program or purpose): JOR] 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 120 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. 01Ul26L 2SVI/AM"]] S 1118 of 3458 INSTRUCTIONS for DECLARATION OF OFFICIAL. INTENT for Reimbursement From Tax -Exempt Bonds/Notes PURPOSE The forth 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 minion 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 to 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 -- Dl"20 62s2/2/+MENIu 1119 of 3458 Example -- `barks and recreation fund, the general functional purpose of which fund or account is recreational facility capital immyement Pro .11 The second option concerning identiucation 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(cx3) 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. 01rvU ea2521VWERiva 1120 of 3458 MIAMI 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 QF 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. :1X-T-]m :Aziemtl161' 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 Lk m nimis 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 fife, 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 P11211 of 3458814 (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. 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 Description ❑ Finance - Oct. 2016 Resolution P1122 14of3458 DECLARATION OF OFFICIAL INTENT For Reimbursement of Expenditures from Bouds/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'). l . 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 "Pmject'7 will he 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 full option or the second option but do not use the second option unless the functional purpose of the fund or account is generaUy descriptive of the purpose of the expenditures:] Expenditures for (insert a general functional description of property, project, program or purpose): (OR1 Expenditures initially made from and to be reimbursed to the fund ar account entitled the general functional purpose of which nd 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 Tide) 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. Pagge 1170 or 1614 oramsesxs1WXW%M 1123 of 3458 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 fiom 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 forth 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 W 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 he 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, gnd a statement of the general functional purpose of that fund or account -- Pape 1111 of 1614 oraarsasz5vvuncaius 124 o 3458 Example — "parks and recreation fund, the general functional purpose of which fund or account is recreational facility eaoital 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 M0.ffi68-615111(PMEPICM 1125 of 3459 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 $82,085,000. 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 2025 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 orthe datethe Project is placed in service, but in no event laterthan three years after the date of the expenditure. 110IMSM"ERICAS 1126 of 3458 Exhibit A— List of General Obligation Neighborhoods and Infrastructure oroiects GO#31: OCEAN DRIVE CORRIDOR GO#34: ABOVE GROUND IMPROVEMENTS GO#36: WASHINGTON AVE. CORRIDOR GO#37: SIDEWALK IMPROVEMENTS GO#38: STREET PAVEMENT GO#40:41 ST. CORRIDOR GO#43: BIKE LANES & SHARED USE PATH GO#44: NORTH SHORE NEIGHBORHOOD 110ID89MZ1MERICAS 1127 of 3458