Loading...
HomeMy WebLinkAboutR-95-0564RESOLUTION NO. 9 5_ 564 A RESOLUTION OF THE CITY OF MIAMI, FLORIDA, PROVIDING FOR THE ISSUANCE OF ONE OR MORE SERIES OF REVENUE BONDS OF THE CITY OF MIAMI, FLORIDA, FOR THE PURPOSES OF PAYING CERTAIN PENSION OBLIGATIONS OF THE CITY AND CERTAIN SEVERANCE PAY OBLIGATIONS OF THE CITY; ESTABLISHING CERTAIN FINANCIAL PARAMETERS, INCLUDING PARAMETERS AS TO AGGREGATE PRINCIPAL AMOUNT, INTEREST RATE, REDEMPTION, MATURITY AND INVESTMENT OF PROCEEDS, FOR ALL SUCH BONDS; AUTHORIZING THE PLEDGE OF CERTAIN NON -AD VALOREM REVENUES OF THE CITY TOWARD THE REPAYMENT OF ALL SUCH BONDS; COVE- NANTING TO BUDGET AND APPROPRIATE CERTAIN NON -AD VALOREM FUNDS OF THE CITY FOR THE REPAYMENT OF ALL SUCH BONDS; AUTHORIZING THE PREPARATION AND ENTRY BY THE CITY INTO A TRUST INDENTURE AND SUPPLEMENTS THERETO FOR THE PURPOSE OF ISSUING AND FURTHER SECURING ALL SUCH BONDS; AUTHORIZING THE APPOINTMENT OF A TRUSTEE AND OTHER NECESSARY FIDUCIARIES, AGENTS AND CONSULTANTS WITH RESPECT TO SUCH BONDS; APPROVING THE NEGOTIATED SALE OF SUCH BONDS; AUTHORIZING THE PREPARATION AND ENTRY BY THE CITY INTO ONE OR MORE BOND PURCHASE AGREE- MENTS RELATING TO SUCH BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH BONDS TO THE PURCHASERS THEREOF; AUTHORIZING THE PREPARATION AND DISTRIBUTION OF APPROPRIATE DISCLOSURE MATERIALS .FOR SUCH BONDS; AUTHORIZING THE COMMENCEMENT OF JUDICIAL VALIDATION PROCEEDINGS WITH RESPECT TO SUCH BONDS; AUTHORIZING APPRO- PRIATE OFFICERS OF THE CITY TO TAKE SUCH OTHER ACTIONS AS SHALL BE NECESSARY AND APPROPRIATE TO ACCOMPLISH THE SALE AND ISSUANCE OF SUCH BONDS, INCLUDING BUT NOT LIMITED TO THE PROCUREMENT OF CREDIT ENHANCEMENT; PROVIDING FOR REPEAL; PROVID- ING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The City of Miami, Florida (the "City") sponsors two separate defined benefit contributory pension plans under the administration and management of separate Boards of Trustees and known, respectively, as The City of Miami Fire Fighters' and Police Officers' Retirement Trust ("FIPO") and The City of Miami General Employees' and Sanitation Employees' Retirement Trust ("GESE"); and CITY COh'L1MSI01F MEETING OF J U L 1 9 1995 Resolution No. 95- 564 ..lit t li WHEREAS, the City was involved in long-standing litigation, principally related to funding of FIPO and GESE which was settled under an, agreement approved by the City Commission on June 13, 1985 (the "Gates Settlement"); and WHEREAS, on April 6,. 1993, the Fraternal Order of Police (FOP), the International Association of Fire Fighters (IAFF) and the City entered into an agreement to modify certain provisions of the Gates Settlement as related to FIPO; and WHEREAS, on January 1, 1994, the City entered into agreement -with the FIPO Board of Trustees further modifying,the obligations of theCityunder the Gates Settlement with respect to FIPO;*and WHEREAS, the City has made since its 1985 fiscal year and continues to make the contributions required of it to FIPO and GESE from funds derived from operating millage of the City; and WHEREAS, payment of City contributions to FIPO and GESE from funds derived from.operating millage of the City has imposed and continues to impose an increasing strain on the operating budget of the City; and WHEREAS, as the City approaches the constitutional cap on operating millage, it is foreseeable that, if City contributions to FIPO and GESE continue to be made from operating millage, the City may be forced to curtail services in order to make contributions; and WHEREAS, the Commission of The City of Miami, Florida (the "Commission") has determined that it is in the best interest of the City to authorize the issuance of one or more series of bonds from time to time in order to provide funds to pay all or a portion of its future contribution requirements to FIPO and GESE and/or to reimburse the City for prior contribution payments by it to FIPO and GESE; and WHEREAS, under terms of applicable Civil Service regulations, labor contracts and administrative policy, City employees are granted vacation and sick leave in varying amounts and certain overtime hours can be accrued and carried forward as earned time off; and -2- 95- 564 l WHEREAS, unused vacation and sick time and such overtime is payable- upon separation from service, subject to various limitations; and WHEREAS, accumulated unpaid compensated absences are accrued when earned (the "Compensated Absence Liability"); and WHEREAS, the Commission has determined that it is in the best interest of the City to authorize the issuance of one or more series of bonds from time to time in order to provide funds to pay all or a portion of its accumulated or future Compensated Absence Liability and/or to reimburse the City for prior payments toward the Compensated Absence Liability; NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the provisions of Chapter 166, Part II, Florida Statutes, the Charter and*Code of the City and other applicable provisions of law. SECTION 2. FINDINGS. The recitals to this Resolution are hereby incorporated into this Resolution by reference. SECTION 3. RESOLUTION TO CONSTITUTE CONTRACT. In consider- ation of the acceptance of the Bonds (as. hereinafter defined) authorized to be issued hereunder by those who shall hold the same from time to time, this Resolution shall be deemed to be and shall constitute a contract between the City and such holders. The covenants and agreements herein set forth to be performed by the City shall be for the equal benefit, protection and security of the legal holders of any and all of such Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly pro- vided therein, herein, and in the trust indenture pursuant to which they are to be issued and supplements thereto (together, the "Indenture"). SECTION 4. AUTHORIZATION OF BONDS. Subject and pursuant to theprovisionsof this Resolution, revenue bonds of the City (the "Bonds") are hereby authorized to be issued in one or more series, such issuance to commence not earlier than the end of the appli- cable appeal period with respect to a judgment of validation on the -3- 95- 564 1 Bonds and to end not later than September 30, 2008. The Bonds may be issued for the following purposes: (i) to provide funds to enable the City to pay (either through direct contributions or the purchase of annuities) current (commencing with the fiscal year ending September 30, 1995) or future contribution obligations to FIPO and7or GESE (Bonds issued or issuable for such purpose being referred to hereinafter as "Pension Bonds"); and (ii) to provide funds to enable the City to pay (either through direct contributions or the purchase of annuities) current (commencing with the fiscal year ending September 30, 1995) or future contribution obligations with respect to the Compensated Absence Liability (Bonds issued or issuable for such purpose being referred to hereinafter as the "Compensated Absence Bonds"). Proceeds of the Bonds may also be expended to pay for costs of issuance of the Bonds, to fulfill reserve requirements with respect to the Bonds or to refund or redeem outstanding Bonds. Pending expenditure of the proceeds of the Bonds, such proceeds may be invested (and reinvested) in the manner permitted under the Inden- ture. All such investments shall comply with the investment policy and guidelines of the City in effect from time to time. The aggre- gate original principal amount of Pension Bonds issuable under this Resolution shall not exceed $15,000,000 per fiscal year, except that such aggregate principal amount of Pension Bonds may be increased for any such fiscal year, commencing with the fiscal year ending September 30, 1995, to an amount not to exceed $15,000,000 times the number of full or partial fiscal years remaining from the date of issuance of such Pension Bonds through September 30, 2008, less $15,000,000 (or appropriate portion thereof) for each current or future fiscal year with respect to which the City shall have already issued Pension Bonds. The aggregate original principal amount of Compensated Absence Bonds issuable under this Resolution shall not exceed $7,000,000 per fiscal year, except that such aggregate principal amount of Compensated Absence Bonds may be increased for any such fiscal year, commencing with the fiscal year .ending September 30, 1995, to an amount not to exceed $7,000,000 times the number of full or partial fiscal years remaining from the date of issuance of such Compensated Absence Bonds through Septem- ber 30, 2008, less $7,000,000 (or appropriate portion thereof) for each current or future fiscal year with respect to which the City shall have already issued Compensated Absence Bonds. -4- 95- 564 �'zjp .SECTION 5. DESCRIPTION OF BONDS. The maturities of each series of the Bonds shall be established by a certificate executed by the City Manager with respect to the Bonds of such series (each such certificate, a "Manager's Certificate"), but the final maturity of each series of the Bands shall not exceed 35 years. The aggregate principal amount of each series of the Bonds shall be established in the Manager's Certificate for the Bonds of such series, such aggregate principal amounts being subject in all respects to the limitations set forth in Section 4 of this Resolu- tion with respect thereto. The interest rates on the Bonds of each .Series shall be established in the Manager's Certificate for the Bonds of such series, but no such interest rate shall exceed the lesser of: (i) the highest lawful rate, or (ii) 12t per annum in the case of Bonds, the interest on which shall be excludible from gross income for federal income tax purposes, or 15t per annum in the case of Bonds, the interest on which -shall be includible in gross income for federal income tax purposes. The Bonds of each Series may be subject to optional. redemption by the City prior to their respective maturities in whole or in part on any date in such order of their maturities as shall be selected by the City Manager, beginning ten years after the date thereof at a redemption price of 103!k of the principal amount of the Bonds being redeemed, declining in succeeding years as the City Manager shall determine, plus accrued interest to the date of redemption, or at such other lesser redemption prices or such other dates earlier than ten years as shall be determined by the City Manager. The terms of any such optional redemption shall be set forth in the Manager's Certificate for the Bonds of such series. The dates on which interest on the Bonds of each series shall be due and payable shall be established in the Manager's Certificate for the Bonds of such series. The Bonds of each series shall be subject to redemption on such terms as shall be established in the Manager's Certificate for the Bonds of such series. The Bonds of each Series shall be dated in such manner as shall be established in the Manager's Certificate for the Bonds of such series. The Bonds of each Series shall be in such denominations as shall be established in the Manager's Certificate for the Bonds of such series. The Bonds of each series shall be issued as serial Bonds, term Bonds or as a combination of serial Bonds and term Bonds, all as shall be established in the Manager's Certificate for the Bonds of such series. The Bonds of each series may be issued as fixed rate bonds, variable rate bonds, capital appreciation bonds, capital appreciation and income bonds, put bonds or extendible maturity bonds. ;}. SECTION 6. SECURITY FOR THE BONDS. The Bonds shall be equally and ratably secured, except to the extent otherwise set forth herein, therein or in the Indenture, by a pledge of such of the following non -ad valorem revenue sources as shall be estab- lished in the Manager's Certificate executed prior to the original issuance and delivery of the first series of Bonds issued under this Resolution and the Indenture (including in any supplement thereto) or subsequent Manager's Certificate: (i) public service tax revenues received by the City pursuant to Section 166.231, Florida Statutes, as amended, or any successor provisions thereto; (ii) franchise revenues received by the City pursuant to the utility franchise that it has granted to Florida Power & Light Company, as amended or modified from time to time; (iii) occupational license tax revenues received by the City pursuant to Section 205.042, Florida Statutes, as amended or any successor provisions thereto; (iv) state revenue sharing revenues received by the City pursuant to Chapter 218, Part II, Florida Statutes, as amended or any successor provisions thereto; and/or (v) fines and forfeitures received by the City pursuant to Section 316.660, Florida Statutes, as amended or any successor provisions thereto. In determining which of the revenue sources enumerated above shall be pledged to secure the repayment of the Bonds, the City Manager shall utilize only such sources as shall be necessary so that Bonds issued under the Indenture shall carry an investment grade rating from Standard & Poor's Ratings Group, Moody's Investors Service, Inc. and/or Fitch Investors Service, L.P. Any pledge of any or all of the revenue sources set forth above shall be subject in all respects to any prior pledges of or liens upon such revenue sources conferred or granted by the City prior to such revenue sources being pledged to secure the repayment of the Bonds To further secure the repayment of the Bonds, the City cove nants, pledges and agrees to appropriate in its annual budget, by amendment, if necessary, from Non -Ad Valorem Funds (as hereinafter defined) lawfully available in each fiscal year, amounts sufficient to pay the principal of and the premium, if any, and interest on M 95- 564 the Bonds becoming due and payable during such fiscal year and Buff icient to pay any other amounts becoming due and payable during such fiscal year under the Indenture. Such covenant and agreement on the part of the City to budget and appropriate such amounts of Non -Ad Valorem Funds shall be cumulative to the extent not paid, and shall continue until such Non -Ad Valorem Funds or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the City, the City does not covenant to maintain any services or programs, now provided or maintained by the City, which generate Non -Ad Valorem Funds. Such covenant to budget and appropriate does not create any .lien upon or pledge of Non -Ad Valorem Funds, nor does it preclude the City from pledging in the future its Non -Ad Valorem Funds, nor does it require the City to levy and collect any particular.Non-Ad Valorem Funds, nor, does it give the holders of the Bonds or the trustee under the Indenture a prior claim on the Non -Ad Valorem Funds, as opposed to claims of general creditors of the City. Such covenant to appropriate Non -Ad Valorem Funds is subject in all respects to the payment of obligations secured by a pledge of such Non -Ad Valorem Funds heretofore or hereafter entered into (includ- ing the payment of debt service on bonds and other debt instru- ments). However, the covenant to budget and appropriate in its general annual budget for the purposes and in the manner stated herein shall have the effect of making available in the manner described herein Non -Ad Valorem Funds and placing on the City a positive duty to appropriate and budget, by amendment, if neces- sary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the restrictions of Section 166.241(3), Florida Statutes, as amended, which provides, in part, that the governing body of each municipality make appropriations for each fiscal year which, in any one year, shall not exceed the amount to be received from taxation or other revenue sources; and subject further, to the payment of services and programs which are for essential public purposes affecting the health, welfare and safety of the inhabitants of the City or which are legally mandated by applicable law. The term "Non -Ad Valorem Funds" shall mean all revenues of the City derived from any source other than ad valorem taxation on real or personal property, which are legally available to make payments required herein, but only after provision has been made by the City for the payment of all essential or legally mandated services. -7- 95- 564 NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, DADE COUNTY, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVI- SION OF ANY OF THE FOREGOING OR ANY GOVERNMENTAL AUTHORITY OR BODY THEREIN ARE OR SHALL BE PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST OR PREMIUM, IF ANY, ON THE BONDS. NO HOLDER OF BONDS SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE AD VALOREM TAXING POWER OF THE CITY, DADE COUNTY, THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION OF ANY POLITICAL SUBDIVISION OF THE FOREGOING OR ANY GOVERNMENTAL AUTHORITY OR BODY THEREIN OR TAXATION IN ANY FORM OF ANY REAL OR PERSONAL PROPERTY THEREIN TO PAY THE BONDS OR THE INTEREST OR PREMIUM, IF ANY THEREON. SECTION 7. AUTHORIZATION OF TRUST INDENTURE. The Commission hereby authorizes the preparation of the Indenture (including supplements thereto) to further secure and provide for the issuance of the Bonds from time to time. The Indenture shall provide for the issuance of the Bonds and shall pledge non -ad valorem revenues of the City in a manner consistent with Section 6 above and shall substantially restate the covenant to budget and appropriate Non -Ad Valorem Funds set forth above. The Indenture may contain such provisions for protecting and enforcing the rights and interests of the holders of the Bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the City -in relation to contributions to FIPO and GESE and the Compensated Absence Liability, the duties of the City in relation to maintenance, preservation and enforcement of the trust estate established under the Indenture, the terms under which additional Bonds beyond the first series of Bonds issuable under the Indenture may be issued and secured, and the custody, safeguarding, invest- ment and application of all moneys held under the Indenture. The Indenture shall provide for the establishment and maintenance of such funds and accounts as the City Manager shall consider appro- priate under the circumstances, including funds for the payment of costs associated with the issuance of the Bonds and reserve funds. The Indenture shall also set forth the rights and remedies of holders of the -Bonds and of the trustee and may, to the extent per- mitted by law restrict individual rights of action by holders of Bonds. The Indenture may also contain such other provisions as the - City Manager may deem reasonable and proper for the security of the holders of the Bonds. The Mayor or Vice Mayor is hereby authorized to execute and the deliver the Indenture and any supplements there- to < providing for the issuance of Bonds, each in a form substan- tially consistent with the requirements of this Resolution, and the City Clerk is hereby authorized to apply the seal of the City to the same and to attest the seal. -8- 95- 564 The Bonds may be supported by a municipal bond insurance policy or other similar credit enhancement if determined by the City Manager, in consultation with City Staff and the financial advisors to the City to be in the best interest of the City. The City Manager is hereby authorized to negotiate with providers of municipal bond insurance and other similar credit enhancement for the issuance of a municipal bond insurance policy or other similar credit enhancement to support the Bonds. The City Manager is hereby authorized to execute a commitment or agreement for the issuance or a municipal bond insurance policy or other similar `credit enhancement to support the Bonds containing such terms as shall be approved by the City Manager, in consultation.with City staff and the financial advisors to the City. SECTION 8. EXECUTION AND AUTHENTICATION OF BONDS. The Bonds shall be executed and authenticated as provided in the Indenture and shall be substantially in the form attached to the Indenture as an exhibit thereto, with such appropriate variations, omissions and insertions, as may be required or permitted by this Resolution, the City Manager's Certificate or the Indenture. SECTION 9, AUTHORIZATION OF DISCLOSURE MATERIALS. The Commission hereby authorizes the preparation and distribution of preliminary and final official statements, offering or placement memoranda, other similar disclosure materials and supplements thereto in substantially such form as shall be attached to a Manager's Certificate and approved by the City Manager, such approval to be set forth in such Manager's Certificate. The Mayor or Vice Mayor is hereby authorized to execute such materials where appropriate on behalf of the City. The City Manager is hereby authorized and directed to take such actions and make such certifi- cations as may be necessary to ensure or facilitate compliance by the City with SEC Rule 15c2-12, including entering into a disclo- sure agreement with respect to the requirements under such rule. SECTION 10. NEGOTIATED SALE. The Commission finds and determines that, due to the unique character of the Bonds, the complexity of the security for the Bonds, prevailing market conditions, and the recommendation of the City Manager that the sale of the Bonds be by negotiation, the sale of the Bonds on the basis of a negotiated sale rather than a public sale by competitive bid is in the best interests of the City and is hereby authorized. SECTION 11. AUTHORIZATION OF BOND PURCHASE AGREEMENTS. The City Manager is hereby authorized to negotiate from time to time -9- 95- 564 with underwriters selected in the manner set forth below for the sale of the Bonds, to award the Bonds from time to time to such underwriters upon compliance by such underwriters with the require- ments of Florida Statutes, Section 218.385, and to execute a bond purchase agreement in connection with the sale of the Bonds to such underwriters, in substantially the form attached as an exhibit to a :Manager's certificate and approved by the City Manager, such approval to be set forth,in the Manager's Certificate. The pur- chase price at which the Bonds shall be awarded from time to time to such underwriters shall be determined by the City Manager in consultation with City staff and the financial advisors to the City and set. forth in the related bond purchase agreement, but shall not be less than 98% of the principal amount of the Bonds (not includ- ing original issue discount). The Finance Director is hereby directed to deliver the Bonds from time to time pursuant to such bond purchase agreements to or upon the order of the Underwriters upon (a) satisfaction of the conditions contained therein and in the Indenture and (b) payment of the purchase price therefor together with accrued interest on the Bonds to the date of delivery thereof, if any, and to apply the proceeds of the Bonds in accordance with the Indenture, this Resolution and the City Manager's Certificate. SECTION 12. BOOK ENTRY SYSTEM. The City Manager is hereby authorized to execute letters of representations or other similar agreements with securities depositories from time to time in connection with the creation of a book -entry system for the registration and transfer of the Bonds. SECTION 13. SELECTION OF UNDERWRITERS, TRUSTEE, BOND COUNSEL AND OTHER CONSULTANTS AND FIDUCIARIES. The City Manager shall select, or coordinate the selection of underwriters, a trustee under the Indenture,, bond counsel and other consultants and fiduciaries necessary or desirable to facilitate the issuance of the Bonds from time to time. The City Manager shall ensure that the process of such selections conforms in all respects to applicable law, including the Charter and Code of the City and resolutions of the Commission in force at the time such selections are undertaken. SECTION 14. VALIDATION. The City Attorney, in consultation with Bond Counsel to the City for the Bonds, is hereby authorized to commence and try judicial validation proceedings with respect to the Bonds and this Resolution pursuant to the provisions of Chapter -10- 95- 564 75, Florida Statutes, as amended, and to appeal any adverse deter- mination with respect thereto or to defend an appeal of any favor- able determination with respect thereto. SECTION 15. OTHER ACTIONS. The Mayor, Vice Mayor, City Manager, any Deputy or Assistant City Manager, Finance Director, City Attorney, any Deputy or Assistant City Attorney, the Clerk and any Deputy Clerk and other appropriate officials of the City are hereby authorized and directed to take all such further action and to execute any and all documents, certificates and other agreements or undertakings necessary in connection with the issuance and the sale of the Bonds to the Underwriters and the consummation of all transactions in connection therewith or otherwise described herein. SECTION 16. SEVERABILITY. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of - such section, paragraph, clause or provision shall not affect any remaining provisions of this Resolution, but this Resolution shall be construed and enforced as if such illegal or invalid section, paragraph, clause or provision had not been contained herein. SECTION 17. NO THIRD PARTY BENEFICIARIES. Except as herein otherwise expressly provided, nothing in this Resolution expressed or implied is intended or shall be construed to confer upon any person, firm or corporation other than the trustee under the indenture, the holders of the Bonds and the issuer of any credit enhancement with respect to the Bonds, any right,, remedy or claim, legal or equitable, under or by reason of this Resolution, all provisions of this Resolution being intended to be for the sole and exclusive benefit of the parties named in this section. SECTION 18. CONTROLLING LAW; MEMBERS OF COMMISSION AND OFFICIALS OF CITY NOT LIABLE. All covenants, stipulations, oblig- ations and agreements of the City set forth in this Resolution shall be deemed to be covenants, stipulations, obligations and agreements of the City to the full extent authorized and provided by the Constitution and laws of the State of Florida. No such covenant, stipulation, obligation or agreement shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, agent or employee of the Commission or the City in his individual capacity, and the members of the Commission nor any official executing the Bonds, the Indenture or any agreement or other document in connection therewith shall not be liable person- -11- 95r- 564 z ally on the Bonds or under this Resolution, the Indenture or any agreement or other document executed in connection therewith. SECTION 19. GOVERNING LAW. The provisions of this Resolution shall be construed and enforced in accordance with the laws of the State of Florida. SECTION 20. REPEALER. All resolutions or parts thereof in conflict with the provisions of this Resolution are, to the extent of such conflict, hereby superseded and repealed. SECTION 21. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 13th day of July 1995. STItPHEN P. CL , Mayor (SEAL) ATTEST: WALTER J. F , City Clerk APPROVED AS TO FORM AND CORRECTNESS: -12- 95- 564 II�IA�i�lY}LY CITY OF MIAM1, FLORIDA i INTER -OFFICE MEMORANDUM88 TO, Honorable Mayor and DATE: JUL - 6 1905 FILE: Members of the City Commission SUBJECT: Issuance of Special Obligation Non -Ad Valorem Revenue Bonds FROM: Cesar REFERENCES: city ENCLOSURES: RECOMMENDATION It is respectfully recommended that the City Commission adopt the attached resolution authorizing the issuance of one or more series of Revenue Bonds for the purpose of paying certain pension obligations and/or severance pay obligations; confirming that such bonds shall constitute Special Obligation Revenue Bonds of the City; agreeing to comply with certain legal requirements; directing and authorizing issuance of said bonds by negotiated sale; authorizing the pledge of certain non -ad valorem revenue and/or covenanting the budget and appropriations of certain City non -ad valorem funds toward the repayment of such bonds; and providing severability and an effective date. BACKGROUND By issuing Special Non -Ad Valorem Revenue Bonds, the City's obligation to fund pension and severance pay will be funded and the debt service payments will be less burden to the City. Also, the Governmental Standard Board in Statement No. 16 effective October 1, 1993 requires State and local governments to record as a liability the employer's share of Social Security and Medicare - taxes for compensated absences as accrued in addition to any regular severance pay. 95- b64