Community Workshop Public Information Presentation 20181
What is a G.O. Bond?
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General Obligation bonds are a form of
debt financing
–Used to finance capital projects
–Payable from property taxes
–Approved by voter referendum
–Backed by a pledge of the City’s
“full faith and credit”
Last G.O. Bond program approved in 1999
1999 G.O. Bond Program
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•$92 million bond program
•Approved by voters on November 2, 1999
Parks &
Beaches
Fire Safety
Facilities &
Equipment
Neighborhood
Improvements
68.5%
approval
56.9%
approval
54.2%
approval
$9.7 million $24.8 million $57.9 million
2018 GO MIAMIBEACH
1999 G.O. Bond Program
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Of 62 total projects, 57 are completed or in progress
4 Fire Safety Facilities Projects
Fire Station #2 Renovations
2018 GO MIAMIBEACH
1999 G.O. Bond Program
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Of 62 total projects, 57 are completed or in progress
4 Fire Safety Facilities Projects
Fire Station #2 Renovations North Shore Youth Center
31 Parks & Beaches Projects
2018 GO MIAMIBEACH
1999 G.O. Bond Program
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Of 62 total projects, 57 are completed or in progress
4 Fire Safety Facilities Projects
Fire Station #2 Renovations North Shore Youth Center
31 Parks & Beaches Projects 22 Neighborhood Improv. Projects
Lake Pancoast
1999 G.O. Bond Program
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•5 remaining projects
•Approximately $28 million of unfunded needs
Project 1999 Bond
Allocation
Unfunded
Needs
La Gorce Neighborhood Improvements $1.1 M $14.0 M
North Shore Neighborhood Improv. $4.2 M $10.0 M
La Gorce Island Improvements $200K $1.0 M
Public Works Facility $1.2M $1.5 M
Parks Maintenance Facility $565K $1.0 M
2018 G.O. Bond Program
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Critical infrastructure
needs in the community
•Public Safety
•Parks/Quality of Life
•Infrastructure/Resiliency
2018 G.O. Bond Program
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•Current funding for capital projects is
very limited
•Still at historically low interest rates
•Rising rate environment
Interest Rate Additional Interest
$300M Bond
Additional Interest
$500M Bond
4.0% – –
4.5% $32.0 M $53.4 M
5.0% $65.6M $109.3 M
2018 G.O. Bond Program
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•Changes in credit rating methodology
–Moody’s report
–Potential downgrade(s) if climate change effects not addressed
•Current credit rating is AA+
–If downgraded to AA-, additional interest of $7 to 8 million
•Debt Capacity
–Can issue G.O. debt up to
15% of assessed property
value ($6.4B)
–Currently at 1.1% of debt
limit ($51.4M)
–Best practice: 6 to 8%
Impact to Property Taxes
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•Depends on bond program amount
–Considering $300 to $500 million program
–For every $100K of taxable value: $60 to $100 annually
•Timing of bond issuances
–Debt service would increase in steps over time
–Implementation would be spread over 7 to 10 years
–Example: $100M issued every 2 years plus refinancing of
existing bonds
Millage Rate History
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Current combined millage rate of 5.8888
is the lowest in the history of Miami Beach
8.9830
6.5025
5.8888
Impact to Property Taxes
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Potential millage rate changes would be phased-in over time
(assumes $300M bond and $100M issuances every 2 years)
Additional
millage
from G.O.
Bond
Assuming no
change in
current
millage rate
5.8888 5.8888 5.8888 5.8888 5.8888 5.8888 5.8888 5.8888
0.0059 0.0260 0.1769 0.2586 0.3080 0.3900 0.5069 0.5069
0.0000
1.0000
2.0000
3.0000
4.0000
5.0000
6.0000
7.0000
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026
Projected Timeline
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Identify Potential Projects
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•Initial project list totaled $1.1 billion
•List compiled from:
–Input from City Commission
–Various master plans (ex. North Beach Master Plan)
–City Boards & Committees (ex. Parks & Recreation Advisory Board)
–Staff recommendations
•Projects and costs continue to be refined over time
February/March
Project Prioritization
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•Commission workshop on April 5th
–Reduced list from $1.1 billion to about $700 million
•Community input to help rank/prioritize projects
–Four community meetings
–Pop-up events
–Neighborhood meetings
–Online tools
April/May
2018 GO MIAMIBEACH
Commission Review & Decisions
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•Mayor’s G.O. Bond Advisory Panel created
•Incorporate community input re: project priorities
•Discussion at Budget Workshops and other meetings
•By July 25th: finalize:
–Project list
–Amount of overall bond program
–Number and amounts for ballot measures
June/July
Public Education
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•Robust public engagement during three months
prior to vote
–Increase voter awareness
–Speaker’s Bureau for public meetings
–Educational materials
•Voter referendum on November 6th
August/September/October
2018 GO MIAMIBEACH
Projected Timeline
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We Want Your Input!
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•Project prioritization
sheets in G.O. Bond
folder
•Review project boards
around the room
–Public Safety
–Parks & Beaches
–Infrastructure
2018 GO MIAMIBEACH
Project Prioritization Exercise
•Rate projects on 5
point scale
–5 High priority
–4 Medium priority
–3 Neutral
–2 Low priority
–1 Not a priority
We Want Your Input!
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•Key staff available for questions
•Submit comments through Feedback
page
•Drop off completed prioritization
sheets
•Question & answer session
2018 GO MIAMIBEACH
Project Prioritization Exercise
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