HomeMy WebLinkAboutR-00-0389J-00-356
5/9/00
RESOLUTION NO. no - 21 IS 9
A RESOLUTION OF THE MIAMI CITY COMMISSION
RATIFYING AND AUTHORIZING THE ANNUAL PAYMENT
OF $300,000 FROM .THE CITY'S GUARANTEED
ENTITLEMENT REVENUE FROM.THE STATE OF FLORIDA
TOWARDS THE RETIREMENT OF THE SERIES 1990
SPECIAL OBLIGATION DEBT ISSUED ON BEHALF OF
THE COMMUNITY REDEVELOPMENT AGENCY ("CRA"),
AND PAYMENT OF $559,522 FROM PREVIOUSLY
AUTHORIZED GENERAL FUND SUBSIDIES FROM FISCAL
YEARS 1997 THROUGH 1999 IN CONSIDERATION FOR
1) LAND DEEDED TO THE CITY BY THE CRA FOR USE
BY THE MIAMI SPORTS AND EXHIBITION AUTHORITY,
AND 2) IN CONSIDERATION OF ANY CLAIMS BY THE
CRA FOR BACK PAYMENT OF REVENUE COLLECTED BY
THE DEPARTMENT OF OFF-STREET PARKING FROM
PARKING ON LAND OWNED BY THE CRA.
WHEREAS, on November 8, 1990 the City issued Community
Redevelopment Bonds totaling $11.5 million for certain
infrastructure improvements, acquisition and clearing of certain
real property and refinancing of a $5.9 'million Section 108
Housing and Urban Development Promissory Note; and
WHEREAS, the bonds were backed by tax increment revenue and
guaranteed entitlement revenue from the state of Florida; and
WHEREAS, the Official Statement of 'the bond indenture
designates the tax increment revenue as the first pledged source
for debt service; and
CITY COMUSSION
MEETING ®r,
MAY 1 1 2000
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WHEREAS, the tax increment revenue has been insufficient to
pay the total debt service and therefore the guaranteed
entitlement revenue from the state of Florida has been used as
the primary source of debt repayment; and
WHEREAS, the City has previously paid $300,000 from its
guaranteed entitlement with the tax increment revenue making up
the shortfall, which assures the debt service obligation is met
while availing funds for the CRA to operate; and
WHEREAS, in fiscal years 1997 through 1999 the City
appropriated $858,976 as subsidies in support of the CRA for
activities not eligible under the Community Development Program;
and
WHEREAS, only $299,454 of the $858,976 was transferred to
the CRA leaving a balance of 559,522; and
WHEREAS, in exchange for. the commitment to continue said
payments by the City of Miami the CRA agrees to forgo any claims
to parking revenue collected by Off -Street Parking for property
owned by the CRA adjacent to the Miami Arena; and
Page 2 of 4
WHEREAS, the CRA also agrees to forgo any claims it may have
for the land deeded to the City and later sold to Miami Sports
and Exhibition Authority for the Miami Arena;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Commission hereby ratifies and
authorizes the annual payment of $300,000 from the City's
guaranteed entitlement revenue from the State of Florida towards
the retirement of the Series 1990 Special Obligation Debt issued
on behalf of the Community Redevelopment Agency ("CRA") and back
payments from general fund subsidies of $559,522 in consideration
for land deeded to the City by the CRA for use by the Miami
Sports and Exhibition Authority; further settling any claims by
the CRA for back payment of revenue collected by the Department
of Off -Street Parking from parking on land owned by the CRA.
Page 3 of 4
Section 3. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.'/
PASSED AND ADOPTED this 11th day of May 1 2000.
JOE CAROLLO, MAYOR
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ATTEST:
WALTER J. FOEMAN
CITY CLER
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CORRECTNESS:t/
J.,Pe
Afian, City Clerk
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 4 of 4
TO
FROM
CITY OF MIAMI, FLORIDA `
INTER -OFFICE MEMORANDUM
The Honorable Mayor and Members
of the City Commission
nald H. Warshaw
City Manager
RECOMMENDATION
DATE: May 3, 2000
23
SUBJECT: City/CRA Issues
REFERENCES: Resolution
ENCLOSURES:
FILE:
It is recommended that a resolution be approved which ratifies the annual payment of
$300,000 from the City's guaranteed entitlement revenue (State Revenue Sharing)
Florida towards the retirement of the Series 1990 Special Obligation Debt issued on
behalf of the Community Redevelopment Agency ("CRA"). It is also recommended that
payment of $559,522 from previously authorized general fund subsidies from Fiscal
Years 1997 through 1999 be approved. These payments to the. CRA would be provided
in consideration for land deeded to the City by the CRA for use by the Miami Sports and
Exhibition Authority; and further in consideration of any claims by the CRA for back
payment of revenue collected by the Department of Off -Street Parking from parking on
land owned by the CRA.
BACKGROUND
The City and the CRA have worked over the past year to improve its financial and related
activities. These improvements, which include fund reconciliations, new financial
statements for the CRA, interlocal agreements, etc., are now in place to assure
compliance with Generally Accepted Accounting Principles (GAAP) and other legal and
administrative procedures enacted by both Boards. Accordingly, based upon a review of
past and proposed future financial transactions, it is necessary that the City Commission
and the CRA take formal actions to ratify/codify actions that have taken place between
the Boards.
First, though the revenue pledged to support the debt on behalf of the CRA is tax
increment funds, historically,, they have been insufficient to meet the debt service
payments; therefore, the City's State Revenue Sharing (SRS) Funds have been used to
make payments. This resolution commits $300,000 until the debt is retired in the calendar
year 2015.
Second, during the period 1997-1999, the City's adopted budget contemplated annual
subsidies for the CRA. The total budgeted subsidies were not always remitted. This
resolution would provide the difference between the budget and the actual amount
transferred during that period.
Finally, these payments to the CRA would be provided in consideration for land deeded
to the City by the CRA for use by the Miami Sports and Exhibition Authority; and further
in consideration of any claims by the CRA for back payment of revenue collected by the
Department of Off -Street Parking from parking on land owned by the CRA.
Should the City Commission approve the aforementioned request, a similar resolution
would be placed on the CRA's agenda for approval.
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