HomeMy WebLinkAboutR-03-0373J-03-357
04/1/03
RESOLUTION NO. 03— 3 13
A RESOLUTION OF THE MIAMI CITY COMMISSION
AUTHORIZING THE DIRECTOR OF FINANCE TO
REIMBURSE THE SUNSHINE STATE GOVERNMENTAL
FINANCING COMMISSION $181,339.69 FOR THE
SPECIAL INTEREST ACCOUNT OF THE RESERVE FUND
FOR THE $300,000,000 REVENUE BONDS, SERIES
1986, ISSUED BY THE SUNSHINE STATE GOVERNMENT
FINANCING COMMISSION AS THE CITY OF MIAMI'S
SHARE OF OVERPAYMENTS RECEIVED BY THE
BORROWERS AS A RESULT OF THE INCORRECT CREDIT
OF INTEREST FOR THE PERIOD MARCH 2000 THROUGH
SEPTEMBER 2002.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The Director of Finance is authorized to
reimburse the Sunshine State Governmental Financing Commission
$181,339.69 for the Special Interest Account of the Reserve Fund
for the $300,000,000 Revenue Bonds, Series 1986, issued by the
Sunshine State Governmental Financing Commission as the City's
share of overpayments received by the borrowers as a result of
the incorrect credit of interest for the period March 2000
through September 2002.
CITY CQMMSSION
X EETING QF
APP 1 2003
Resolution 11io.
03 - 373
Section 2. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.11
PASSED AND ADOPTED this loth day of ,,April , 2003.
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
APPROVED AS TO FORM ANUo@ORRECTNESS
09JAND VILARELLO
ITY ArrORNEY
57:tr:JHV:AS:BSS
1� If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it shall
become effective immediately upon override of the veto by the
City Commission.
Page 2 of 2 03— 373
TO
FROM
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honors a ayorand M rs
f th City Commissio
Iioe Arriola
ty Manager
RECOMMENDATION:
23
DATE : mti J I La FILE:
SUBJECT: Repayment of overage
received in connection with
1986 Series Bonds
REFERENCES:
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the attached resolution
authorizing the reimbursement of $181,339.69 in eight equal payments to the Sunshine State
Governmental Financing Commission as the City's share of overpayments received in connection
with the Series 1986 bond issue as result of the incorrect credit of interest for the period covering
March 2000 through September 2002.
BACKGROUND:
The Sunshine State Governmental Financing Commission (the "Commission") was created in
1986 by Interlocal Agreement between the City of Orlando and the City of Tallahassee. In 1986,
the Commission issued $300 million of revenue bonds, the proceeds of which were lent to
municipal governments throughout the State of Florida, including the City of Miami. At the time
the bonds were issued a debt service reserve fund of $30 million was established. This fund is
comprised of (1) a Debt Service Fund of $25,438,356.17 and (2) a Special Interest Account of
$4,561,643.83. During the year 2002, the trustee bank for the bond issue was replaced by the
Sunshine State Governmental Financing Commission. A reconciliation of the Debt Service fund
was conducted by the New Trustee at which time they notify the Commission of the shortfall in
the in the Special Interest Account of the Debt Reserve Fund. This shortfall was due the prior
trustee's incorrect calculation of the interest amount payable to the borrowers on the Reserve
Fund. The error resulted in the borrowers, including the City of Miami, receiving an
overpayment of interest due for the period covering March 2000 through September 2002.
The bond indenture requires that this amount be recaptured and this resolution authorizes the
repayment of the overage received by the City of Miami. The City of Miami's share of the
repayment is $181,339.69 and will be repaid in eight equal installments to replenish the Special
Interest Account of the Debt Service Reserve Fund.
FISCAL IMPACT:
There will be an impact on the 2003 budget year in the Debt Service Fund transfer of excess
interest on the variable debt to the General Fund.
03- 373